People and events in 2020 – Part 2

We need a plan, not another vision, Azmin

The Pakatan Harapan (PH) government announced in October a new blueprint for the country’s development which marks a new vision after the lofty Vision 2020 failed to achieve its desired objectives.

The new vision dubbed Shared Property Vision (SPV) 2030 aspires to tackle all the issues to transform Malaysia into an ideal nation by 2030. It is the brainchild of Minister of Economic Affairs Datuk Seri Azmin Ali.

Among other things, it underlines steps to be taken to address poverty, reduce income disparities, create high-paying jobs, sustainability and promoting the Bumiputera empowerment agenda.

The official definition of SPV2030 reads: “Shared Prosperity Vision 2030 is a commitment to make Malaysia a nation that achieves sustainable growth along with fair and equitable distribution, across income groups, ethnicities, regions and supply chains. The commitment is aimed at strengthening political stability, enhancing the nation’s prosperity and ensuring that the rakyat is united whilst celebrating ethnic and cultural diversity as the foundation of the nation-state”.

It seems that delaying plans for an utopian future is normally the clarion call of the government of the day. The previous BN government had also introduced ambitious plans such as Transformasi Nasional 50 or TN50, Multimedia Super Corridor (MSC) and the growth corridors. The outcomes of these “misadventures” have been well documented – they were all abject failures.

However, the question remains. What is the government doing to tackle the issues faced by the rakyat today? Will SPV2030 be another pipe dream?

We need concrete plans to alleviate the hardships of the rakyat who face cost of living issues, low wages and inadequate job opportunities. Azmin and his Ministry of Economic Affairs (MEA) have been mostly silent on these issues but instead they come up with a frivolous plan known as SPV2030.

Azmin has also been plagued by problems in his party, Parti Keadilan Rakyat (PKR), where he is deputy president. News about his reported “feud” with party president Datuk Seri Anwar Ibrahim have been making headlines recently. In addition, he is allegedly involved in participating in a sex video with another man and the matter is being investigated by the police.

One wonders how he can focus on the SPV with all the controversies he is embroiled in. It does not matter if the government is new or old, the most important things are slogans, blueprints, visions and never-ending “ideal state” statements.

We are inundated on a daily basis with racial issues but the government has done little to address the ticking racial time bomb.

Sure, we want to transform our economy and create high-paying jobs and we have been saying this for a long time. But look at us: how do we move up the value chain when the “production function” of the nation has gravitated toward the standards of unskilled foreign labour? If we can’t solve the problems right in front of us, let’s not talk about grandiose stuff for the future.

Lack of Bumiputera contribution to the economy is highlighted as one of the key areas to address under the SPV2030. It seems that the “crutches” provided under the New Economic Plan (NEP) will continue. Has the government not learned its lesson from the failure of the past through NEP? Affirmative action needs to be looked at from a different angle.

“Empowering’ need not be deciphered as “enriching”. Given that the Bumiputeras are still lagging behind other races, a solution to their predicament needs a holistic but practical approach.

Is Azmin the man for the job? The new year will tell us some. – by Ranjit Singh

 

Time for Lim to focus on strengthening the country’s financials

As Finance Minister Lim Guan Eng celebrated his 59th birthday in December, one wish the nation probably has for him is to focus on bringing the country out of its financial woes.

Since Pakatan Harapan (PH) broke Barisan Nasional’s 61-year reign over the nation in May 2018, the finance minister has had his fair share of problems and issues to resolve.

He recently revealed that the government’s direct debt had at most increased by RM94.1 bil to RM799.1 bil since PH took over the government until end-June 2019. He said the RM94.1 bil increase in direct debt had financed development expenditure, fiscal deficits and debt repayments, which include 1Malaysia Development Bhd (1MDB) borrowings.

Certainly, there is a lot on his plate. He had to ensure that PH’s general election pledges are fulfilled. According to Lim, about 60% of the pledges have been met. One of the main pledges by the PH coalition was to abolish the Goods and Services Tax (GST) and replace it with the Sales and Service Tax (SST).

GST is seen as a fair system as there were exclusion clauses that protected the lower-income group. As such, many economists felt the GST should be re-introduced but at a lower rate of between 3% and 4% instead of the previous 6%.

The finance minister also caught the industry by surprise by imposing Real Property Gains Tax (RPGT) of 5% on gains from disposal of property after the fifth year of owning it. Previously, Malaysians were not charged any RPGT if they sold their properties after holding them for at least five years.

There was also plenty of criticism when Lim announced plans to lower the threshold on high-rise property prices in urban areas for foreign ownership to RM600,000 in 2020 from RM1 mil at present.

In his Budget 2020 speech in Parliament on Oct 11, Lim said the initiative aims to reduce the supply overhang of condominiums and apartments, whose value amounted to RM8.3 bil as at second quarter 2019.

There were concerns that the new threshold will encourage developers to push up property prices to take advantage of the situation.

However, Lim clarified that the lowering of the threshold is only applicable for existing condominium and apartment units that are still unsold and will take effect from Jan 1 until Dec 31, 2020 only.

Apart from dealing with the country’s financial matters, the DAP secretary-general has to face a possible cabinet reshuffle following the loss by PH in the Tanjung Piai by-election in November.

Lim has also been slapped with a defamation suit filed by Baling MP Datuk Seri Abdul Azeez Abdul Rahim against former Penang Chief Minister Lim Guan Eng in connection with an undersea tunnel construction project.

Suffice it to say that Lim will have a lot to deal with going into the new year but it is imperative that the finance minister stays focused on bringing the country out of the financial rut with concrete measures. – by Doreenn Leong

People and events in 2020 – Part 1

People and events in 2020 – Part 3

People and events in 2020 – Part 4

People and events in 2020 – Part 5

People and events in 2020 – Part 6

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