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The Year To Begin Reformasi<\/strong><\/p>\n\n\n\n<p>The year of The Rabbit is one where the sacrifices of the past are rewarded generously.<\/p>\n\n\n\n<p>The end of 2022 and beginning of the new unity government has seen lots of promises but little action on the Reformasi agenda contained in the new coalition&#8217;s election manifestos. Can 2023 see meaningful change on the economic front?<\/p>\n\n\n\n<p>On the plus side, Pakatan and unity government chief, Anwar Ibrahim, has reiterated that his main responsibility as prime minister is taking care of the people&#8217;s welfare, not constructing grand mega buildings. Hence his first order of business is to help the urban poor, as well as hawkers and small traders.<\/p>\n\n\n\n<p>Well and good. This much neglected constituency has a majority of non-Malays who have been neglected and suffered under Barisan\u2019s discriminatory policies. Malaysian Chinese and Indians are also fully aware that talk is cheap. They await with bated breath for the follow up actions for the implementation of the promise.<\/p>\n\n\n\n<p>We have also seen two encouraging measures undertaken to indicate that the new government may not be planning to drag its feet on the numerous reform issues that the Pakatan coalition parties have repeatedly drawn attention to when they were out of power.<\/p>\n\n\n\n<p><strong>GLC and Civil Service Reform Needs Immediate Cabinet Review<\/strong><\/p>\n\n\n\n<p>The dismissal of all chairmen and board members of government-linked companies, statutory bodies and state-investment funds appointed politically with immediate effect is a positive but really tiny step in curbing patronage, corruption, mismanagement and issues of conflict of interest known to be widely rampant in the economy and costing the nation trillions of ringgit.<\/p>\n\n\n\n<p>Reform can begin with the existing GLCs to ensure that they become a contributor to the national economy rather than being an economic deadweight and fiscal drag. Governance and racial bias, economic costs, financial sustainability and a host of other issues related to GLCs have been hidden from policy attention and public scrutiny. This box of skeletons needs to be opened up.&nbsp;<\/p>\n\n\n\n<p>The divestment by Government of parasitic and non performing GLCs that provide little value added but have instead crowded out private sector players should begin after the removal of political appointees.<\/p>\n\n\n\n<p>Another positive development is the announcement that the Federal Territories Ministry is being downgraded to departmental status.&nbsp;<\/p>\n\n\n\n<p>Critics of the bloat in the Cabinet size &#8211; in 1969 Malaysia had 19 Ministers and 5 Assistant Ministers; Ismail Sabri\u2019s cabinet had 32 ministers and 38 deputy ministers &#8211; have long complained that the large increase in the number of<br>Ministers has been unjustified and simply reflected the inclination to reward Barisan leaders.<\/p>\n\n\n\n<p>The Federal Territories reassignment together with the reduction in size of his cabinet to a total of 28 ministers and 27 deputy ministers gives hope that the new Prime Minister may be prepared to tackle perhaps the biggest elephant in the Treasury room &#8211; the nation\u2019s civil service.<\/p>\n\n\n\n<p>Currently the budget of the 1.6 million civil servants together with the pensions and gratuities bill comes up to nearly half of the federal government\u2019s annual revenue. It is also the total of all personal and company tax collected mainly paid by non-Malays.&nbsp;<\/p>\n\n\n\n<p>Rightsizing the massive civil service and cutting back on their operating expenditure have been advocated by the<br>World Bank and every reputable financial services consultancy organisation that has done business in Malaysia.<\/p>\n\n\n\n<p>Implementing a downsizing programme has been seen as politically difficult as 90% of civil servants are Malays. However the new government should not be held hostage by 1.6 million voters whose number is outnumbered by the 13.4 million worker voters in the private sector.&nbsp;<\/p>\n\n\n\n<p>Private sector workers have had their financial security needs sacrificed to protect the interests of their public sector counterparts who enjoy lifelong pensions.<\/p>\n\n\n\n<p>It\u2019s not only the size and cost of the civil service that matters. Just as or more important is the quality of performance as the country\u2019s public sector has received poor marks in relation to its independence, accountability, transparency and impartiality, and absence of recruitment and senior management based on meritocracy. These concerns can be more easily corrected if there is the political will to implement non-discriminatory racial policies.<\/p>\n\n\n\n<p><strong>Dealing with Inflation<\/strong><\/p>\n\n\n\n<p>Last but not least among developments on the economic front is the call by Economic Minister Rafizi for a \u201ccollective\u201d effort to rein in soaring inflation. Given prominence in his speech is the disclosure that the public are partly responsible for the continued rise in food prices and rising inflation. Hence his advice especially to the lower income group to change their consumption behaviour and avoid buying unreasonably priced goods to curb inflation.<\/p>\n\n\n\n<p>Rafizi and his policy team are clearly not in the B40 group. Neither do they appear to be knowledgeable about the economics of poverty. They also appear to be ignorant of how the prices of the cheapest items in the Malaysian basket of goods and services defined by the Department of Statistics such as foodstuff and staples, manufactured goods, clothing, transportation, healthcare, etc have increased during the last few years, many quite dramatically.<\/p>\n\n\n\n<p>If independent stakeholders have been scrupulously monitoring prices or buying rice, milk, flour, cooking oil, eggs, meat, fish, vegetables, fruits and other daily necessities, they will not only be confronted by the phenomenon of rising prices. They will also be mystified by the official Consumer Price Index (CPI) data which consumers and some analysts feel is misleading and has underestimated the actual pricing of goods purchased.<\/p>\n\n\n\n<p>During the past year, the country\u2019s CPI increased from 124 points in Nov 2021 to 129 points in Nov 2022 &#8211; a small figure that is difficult to believe. The CPI trend data from 2018 to 2022 &#8211; 121 points to 129, or an increase of 8 points over a 4 year period &#8211; is even less believable!<\/p>\n\n\n\n<p>Even the Economic Minister is probably finding the official inflation figure of 3.3% for the last year difficult to defend, hence his speech.&nbsp;<\/p>\n\n\n\n<p>However, putting the blame for the soaring inflation on consumers, small traders, kopitiam, kedai makanan and other voiceless or less influential groups although making for good headlines and copy is really scoring an own goal<br>in dealing with this concern.<\/p>\n\n\n\n<p>For now, until the sources of inflation are independently and rigorously identified, it is best for the government to focus on the elimination of cartels in the sectors of food and essential supplies identified as a key priority in Pakatan\u2019s election manifesto.<\/p>\n\n\n\n<p>The public, especially those who voted for PH in the last election, should raise their voices on this issue so that there is no backsliding by the government.<\/p>\n\n\n\n<p><em>*First of a series focusing on the key areas of promised reform contained in Pakatan Harapan\u2019s 15GE manifesto and other election promises of the Unity government.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u5c06\u5230\u6765\u76842023\u5e74\u2500\u2500\u5154\u5e74\uff0c\u5c06\u662f\u8fc7\u53bb\u727a\u7272\u5f97\u5230\u6177\u6168\u56de\u62a5\u7684\u4e00\u5e74\u30022022\u5e74\u6765\u5230\u5c3e\u58f0\uff0c\u65b0\u7684\u8054\u5408\u653f\u5e9c\u4e5f\u4e0a\u53f0\u4e86\uff0c\u6211\u4eec\u770b\u5230 [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":918595,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[111],"tags":[],"_links":{"self":[{"href":"https:\/\/test.seehua.com\/index.php?rest_route=\/wp\/v2\/posts\/918593"}],"collection":[{"href":"https:\/\/test.seehua.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/test.seehua.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/test.seehua.com\/index.php?rest_route=\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/test.seehua.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=918593"}],"version-history":[{"count":0,"href":"https:\/\/test.seehua.com\/index.php?rest_route=\/wp\/v2\/posts\/918593\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/test.seehua.com\/index.php?rest_route=\/wp\/v2\/media\/918595"}],"wp:attachment":[{"href":"https:\/\/test.seehua.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=918593"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/test.seehua.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=918593"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/test.seehua.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=918593"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}