Please quit your private sector job today. You no longer need to work for money. The government is giving free monthly handouts of cold hard cash.
Yes. This is Malaysia. Everything is possible. Previously, to receive this free handout, you needed to sign an employment letter with the Government of Malaysia and appear at the office, sometimes. With the introduction of the Works Ministry's work-from-home scheme, you need not even appear at the office!
Brilliant. Previously, government officers had to bore themselves at the office because 10 people had to do the work of 1. Many such officers had resorted to money wasting teh tariks. The thrifty ones just had to made do with gossips and Drama Minggu Ini debates. All in the name of being in the office.
Now you can watch TV at home, look after your 7 kids at home, iron your clothes at home, wake up at 10 am, or even catch the late morning screening of Avatar at the cinema nearest to your home. All these during office hours and the government will still pay you.
And best of all, no need to go through jams to and fro work. No need to spend 3 to 4 hours in the traffic jams or public transports. Leave that to the private sector idiots.
What a way of life! Excellent for government officers.
Not for us private sector dummies though.
Somewhere in the near future, you receive an investigation letter from the IRB requiring you to call a certain Pn. Norita.
The phone rings for 18 times. No answer. Hang up. Check the phone number printed on the letter. Correct. Hit redial. On the 9th ring...
IRB Hotline Receiver: Jabatan Hasil.
You: Boleh saya cakap dengan Pn. Norita?
IRB: Bahagian?
You: Penyiasatan.
IRB: Bukan nombor ini. Sila dail 03-4289xxxx
And you call 03-4289xxxx. The phone rings, and rings and rings and finally got cut off. Double check the number you wrote down. Call 03-4289xxxx again. After the 12th ring...
IRB: ...
You: ...
IRB: ...
You: Hello?
IRB: Ya?
You: Boleh saya cakap dengan Pn. Norita, Bahagian Penyiasa...
The line got passed.
Receiver: ...
You: Boleh saya cakap dengan Pn. Norita?
Receiver: Pn. Norita takde di office hari ini?
You: Dia cuti?
Receiver: Tak. Dia bekerja. Tapi dia takde di office hari ini. You talipon balik esok.
The next day, you call Pn. Norita again. After the usual ding dong, the line got passed to her.
Pn. Norita: Norita di sini.
You: Puan, name saya Xxxxx. Saya telefon pasal surat puan bertarikh xx.xx.20xx.
Pn. Norita: Ya, saya ingat kes you. Kenapa tak talipon awal-awal?
You: Saya talipon semalam Puan. Tapi Puan tak ada di pejabat.
Pn. Norita: Oh ya. Semalam saya bekerja dari rumah. Fail you pun saya bawa balik rumah untuk tengok.
You: Ha? Bukankah fail saya peribadi?
Pn. Norita: Memang lah peribadi. Tapi kalau tak bawa balik, macam mana saya nak kerja?
You: Jadi kes saya macam mana sekarang Puan? Saya tak faham sangat dengan masalah teknikal ni.
Pn. Norita: Saya memang pelupa lah. Tertinggal fail you kat rumah. Saya kena tengok balik fail. You talipon balik esok.
You: Esok Puan kerja dari rumah atau office?
Pn. Norita: Esok saya ada di office.
The next day, you call Pn. Norita as planned.
You: Boleh saya cakap dengan Pn. Norita?
Receiver: Pn. Norita tak ada di pejabat.
You: Tapi semalam dia kata dia kerja di office hari ini.
Receiver: Dia memang dijadualkan bekerja di pejabat hari ini. Tapi kucing dia mati.
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I wish to be an optimist. I really do. But sometimes, I cannot help but to remain pessimistic about what is in store for us in this country we call Bolehland.
Like others, we all look forward to the next General Elections (GE), where the rakyat can teach UMNO-BN a lesson they would never forget (because they seem to have forgotten how much a trashing they got in the March 2008 GE). We all can't wait for Pakatan Rakyat to take over the helm and bring back glory to this beloved country of ours. Pakatan is like the saviour that we all have been waiting for and they will bring with them equality and transparency that we all crave for so much.
Lately, I do not share that hope anymore. Not that I have given up on Pakatan (they have their flaws), but I do not have hope anymore because of UMNO-BN. Why is that? Well, let's think about it for a moment. Come next GE, beyond our wildest imaginations and against all odds, Pakatan managed to form the next federal government, we celebrate with joy a new era for the country. The country is finally back in the hands of the people... or so it seems.
I hate to rain on everyone's parade but reality is that UMNO-BN would be totally angry by this, like how they felt when Penang, Selangor, Kedah, and Perak had gone to Pakatan... along with Kelantan. From then on UMNO-BN had been plotting to get back the states that they lost. They managed to take back Perak by illegitimate means. They are creating all sorts of havoc in the other states to discredit the state governments so the people would be totally fed up with them and wished that UMNO-BN would take over the states again. Mark my words, if Pakatan does take over the Federal Government, UMNO-BN will not sit by and let it be. They will do whatever means to either discredit the new government through the manipulation of the police, judiciary, election commission, or MACC.
Would you think the Police, the judiciary, election commission or the MACC would pledge their impartiality and remain independent despite a change in government? Hell no! These jokers have been on the UMNO-BN payroll for years and we are talking big bucks here. Do you think these jokers would sit still and see their 'income' cut off by the Pakatan government? Nope! They would want things to be status quo, because they have tasted the forbidden fruit and loved it. Ever wonder how does an ex-deputy IGP own estates worth RM47 million? By being a good cop? Yea right!
If UMNO-BN is willing to trample on constitution like what they did in Perak, what makes you think that UMNO-BN will not resort to even more dirty tricks to discredit the new government and when Pakatan takes over? So what can Pakatan do? Get rid of every senior cop, MACC, election commission, and judges? What about the people in civil service? We all know that they can easily sabotage state governments by working slowly, cocking-up here and there, flip-flop on enforcements here and there, enough to piss off the people who would wish then that UMNO-BN is back in power again. Imagine SYABAS conveniently taking their sweet time in their supply and maintenance, or Indah Water being a little slow in processing sewerage, or Alam Flora being inconsistent in they solid waste collection.
There's too much at stake and the big guns would stand to lose huge sums of money. And they won't allow that to happen. UMNO-BN will do whatever it takes to get back the country. They have too much to lose, and they would get it back by manipulating the Police, Judiciary, Election Commissions, the civil service and the MACC.
Do you think they care about every one's rights? March 2008 was supposed to teach them a lesson. Seems that they remain as arrogant as ever judging by what we have been seeing this year. I won't celebrate too much when Pakatan takes over... because then it would be crunch time for this country of ours.
Our future is not that bright.
Like others, we all look forward to the next General Elections (GE), where the rakyat can teach UMNO-BN a lesson they would never forget (because they seem to have forgotten how much a trashing they got in the March 2008 GE). We all can't wait for Pakatan Rakyat to take over the helm and bring back glory to this beloved country of ours. Pakatan is like the saviour that we all have been waiting for and they will bring with them equality and transparency that we all crave for so much.
Lately, I do not share that hope anymore. Not that I have given up on Pakatan (they have their flaws), but I do not have hope anymore because of UMNO-BN. Why is that? Well, let's think about it for a moment. Come next GE, beyond our wildest imaginations and against all odds, Pakatan managed to form the next federal government, we celebrate with joy a new era for the country. The country is finally back in the hands of the people... or so it seems.
I hate to rain on everyone's parade but reality is that UMNO-BN would be totally angry by this, like how they felt when Penang, Selangor, Kedah, and Perak had gone to Pakatan... along with Kelantan. From then on UMNO-BN had been plotting to get back the states that they lost. They managed to take back Perak by illegitimate means. They are creating all sorts of havoc in the other states to discredit the state governments so the people would be totally fed up with them and wished that UMNO-BN would take over the states again. Mark my words, if Pakatan does take over the Federal Government, UMNO-BN will not sit by and let it be. They will do whatever means to either discredit the new government through the manipulation of the police, judiciary, election commission, or MACC.
Would you think the Police, the judiciary, election commission or the MACC would pledge their impartiality and remain independent despite a change in government? Hell no! These jokers have been on the UMNO-BN payroll for years and we are talking big bucks here. Do you think these jokers would sit still and see their 'income' cut off by the Pakatan government? Nope! They would want things to be status quo, because they have tasted the forbidden fruit and loved it. Ever wonder how does an ex-deputy IGP own estates worth RM47 million? By being a good cop? Yea right!
If UMNO-BN is willing to trample on constitution like what they did in Perak, what makes you think that UMNO-BN will not resort to even more dirty tricks to discredit the new government and when Pakatan takes over? So what can Pakatan do? Get rid of every senior cop, MACC, election commission, and judges? What about the people in civil service? We all know that they can easily sabotage state governments by working slowly, cocking-up here and there, flip-flop on enforcements here and there, enough to piss off the people who would wish then that UMNO-BN is back in power again. Imagine SYABAS conveniently taking their sweet time in their supply and maintenance, or Indah Water being a little slow in processing sewerage, or Alam Flora being inconsistent in they solid waste collection.
There's too much at stake and the big guns would stand to lose huge sums of money. And they won't allow that to happen. UMNO-BN will do whatever it takes to get back the country. They have too much to lose, and they would get it back by manipulating the Police, Judiciary, Election Commissions, the civil service and the MACC.
Do you think they care about every one's rights? March 2008 was supposed to teach them a lesson. Seems that they remain as arrogant as ever judging by what we have been seeing this year. I won't celebrate too much when Pakatan takes over... because then it would be crunch time for this country of ours.
Our future is not that bright.
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Malaysia is close to bankruptcy.
The government has no more money. 2009 must have been a horrible year with little corporate taxes collected (and expected to be collected) due to the economic slowdown. Foreign investments have also slowed to a halt.
And yet Najib's government is trying to spend their way out of the economy. Honestly, if carried out well, government spending is a key component in driving the economy up. But not in Malaysia. The leakages are too large. As a result, the expected multiplier effects do not maximise. The money disbursed end up in the pockets of those who least deserve it instead.
2009 must go on record as the year with the largest amount of government bonds issued. Amanah Saham this and Amanah Saham that. I don't have the statistics but I doubt 2009 will be too far off the numero uno spot even if it does not take the top spot. All sorts of bond were raised and for the first time, take-up quotas drawn along the usual racial lines have been removed.
What does that mean? The government is simply desperate for money. The amount that they could raise from the protected and preferred Malay race have simply maxed up. That left Najib with no choice but to loan from the desperate Chinese and Indians on the pretext of equality and sharing of wealth with all in the country. And at lower rates of returns too.
Malaysians are not well read people. And I bet you that most people do not understand what a bond is apart from it being an investment opportunity that generates interest income higher than that offered by FDs. Bonds are actually IOUs. It is a loan. When you buy a bond, you are actually lending money to the bond issuer and you get paid back upon maturity.
Upon maturity, paying back of bond money is an issue should the bond issuer (in this case the government of Malaysia) has no money to pay. But as the government, this can be solved via a few simple strategies at the expense of the rakyat.
The government may raise new bonds to pay-off the earlier bonds. And this can be done over and over again. The bet by the government is that the government's income will improve in the future and one day, these loans from the public can be paid off. Theoretically, this sounds ideal. But do you genuinely accept that from the government of a nation whose corruption index ranking have been consistently falling to an embarrassing 57 now? Regardless of how much of the nations resources are depleted (our oil is running out by the way; palm oil isn't that popular in the world market unless you are a sucker who believes in Utusan Malaysia; we do not have much rubber; we ran out of tin decades ago), the profit do not go back to the rakyat but the Swiss private bank accounts of our politicians.
So, the bonds will never get to be paid from the ideal profits. New bonds will be issued to pay off earlier bonds. And this will go on and on and on. Over time, with larger amount of bonds raised every time to cover for additional 'nation building and development', government debts will only continue to rise. This is what we call a Ponzi scheme. Read Bernie Madoff. Read cheat. Read con.
The present government is passing it's current problem to the future generation. An irresponsible government indeed. In developed nations, the people are able to appreciate this problem. Parliaments debate after debate on bond issuances. In Malaysia, the Prime Minister approves new bonds while he gobbles down his nasi lemak with ayam rendang and sotong sambal. The future is not his problem anyways. He has his hot seat to protect; lose it or he will get nagged to his death by the thing who sleeps next to him.
Has anyone actually thought that Najib knows that his days are numbered and he is maximising his personal dough collection? Think about it. Whatever he takes from the bonds will have to be paid back by the next government. If he is not going to be the next government, paying back will not be his problem.
But whatever he does now will still be a problem for the rakyat in the future. If BN continues, it will be BN's repayment problem. If PR takes over, it will be PR who is faced with the same repayment headache. The only permanent fixture is that the rakyat is at the losing end.
Some may argue that all the government has to do is to print more money. Yes, that is true. A learned friend of mine once said that the government will never run out of money because it can just print more. That is a brilliant statement. But of course it has it consequences. The amount of paper money in circulation must correspond to the amount of gold and other reserves. If paper money exceeds the value of the reserves - which is what the US is facing right now - then the said currency's value falls. Purchasing power declines. Inflation rises. And a whole lot of other negative economic terminologies.
So you see, printing money to repay government loans solves the loan issue but it brings the country to a whole new level of economic problems.
And yes, you got the message, the rakyat loses.
If you are lucky to live short enough, the problem will not be yours. But your kids? You better leave them enough money to buy bananas at RM1 million per comb.
The government has no more money. 2009 must have been a horrible year with little corporate taxes collected (and expected to be collected) due to the economic slowdown. Foreign investments have also slowed to a halt.
And yet Najib's government is trying to spend their way out of the economy. Honestly, if carried out well, government spending is a key component in driving the economy up. But not in Malaysia. The leakages are too large. As a result, the expected multiplier effects do not maximise. The money disbursed end up in the pockets of those who least deserve it instead.
2009 must go on record as the year with the largest amount of government bonds issued. Amanah Saham this and Amanah Saham that. I don't have the statistics but I doubt 2009 will be too far off the numero uno spot even if it does not take the top spot. All sorts of bond were raised and for the first time, take-up quotas drawn along the usual racial lines have been removed.
What does that mean? The government is simply desperate for money. The amount that they could raise from the protected and preferred Malay race have simply maxed up. That left Najib with no choice but to loan from the desperate Chinese and Indians on the pretext of equality and sharing of wealth with all in the country. And at lower rates of returns too.
Malaysians are not well read people. And I bet you that most people do not understand what a bond is apart from it being an investment opportunity that generates interest income higher than that offered by FDs. Bonds are actually IOUs. It is a loan. When you buy a bond, you are actually lending money to the bond issuer and you get paid back upon maturity.
Upon maturity, paying back of bond money is an issue should the bond issuer (in this case the government of Malaysia) has no money to pay. But as the government, this can be solved via a few simple strategies at the expense of the rakyat.
The government may raise new bonds to pay-off the earlier bonds. And this can be done over and over again. The bet by the government is that the government's income will improve in the future and one day, these loans from the public can be paid off. Theoretically, this sounds ideal. But do you genuinely accept that from the government of a nation whose corruption index ranking have been consistently falling to an embarrassing 57 now? Regardless of how much of the nations resources are depleted (our oil is running out by the way; palm oil isn't that popular in the world market unless you are a sucker who believes in Utusan Malaysia; we do not have much rubber; we ran out of tin decades ago), the profit do not go back to the rakyat but the Swiss private bank accounts of our politicians.
So, the bonds will never get to be paid from the ideal profits. New bonds will be issued to pay off earlier bonds. And this will go on and on and on. Over time, with larger amount of bonds raised every time to cover for additional 'nation building and development', government debts will only continue to rise. This is what we call a Ponzi scheme. Read Bernie Madoff. Read cheat. Read con.
The present government is passing it's current problem to the future generation. An irresponsible government indeed. In developed nations, the people are able to appreciate this problem. Parliaments debate after debate on bond issuances. In Malaysia, the Prime Minister approves new bonds while he gobbles down his nasi lemak with ayam rendang and sotong sambal. The future is not his problem anyways. He has his hot seat to protect; lose it or he will get nagged to his death by the thing who sleeps next to him.
Has anyone actually thought that Najib knows that his days are numbered and he is maximising his personal dough collection? Think about it. Whatever he takes from the bonds will have to be paid back by the next government. If he is not going to be the next government, paying back will not be his problem.
But whatever he does now will still be a problem for the rakyat in the future. If BN continues, it will be BN's repayment problem. If PR takes over, it will be PR who is faced with the same repayment headache. The only permanent fixture is that the rakyat is at the losing end.
Some may argue that all the government has to do is to print more money. Yes, that is true. A learned friend of mine once said that the government will never run out of money because it can just print more. That is a brilliant statement. But of course it has it consequences. The amount of paper money in circulation must correspond to the amount of gold and other reserves. If paper money exceeds the value of the reserves - which is what the US is facing right now - then the said currency's value falls. Purchasing power declines. Inflation rises. And a whole lot of other negative economic terminologies.
So you see, printing money to repay government loans solves the loan issue but it brings the country to a whole new level of economic problems.
And yes, you got the message, the rakyat loses.
If you are lucky to live short enough, the problem will not be yours. But your kids? You better leave them enough money to buy bananas at RM1 million per comb.
Additional note by author: Najib has pledged more and more spending. But with limited funds available, other government disbursements will have to be reduced. Hence, the proposed (rumoured) removal of subsidies for petrol, sugar and flour are very real. Expect electricity tariffs to go up too. Rakyat will suffer like never before. Is he not interested in getting re-elected? Does sound like Najib is taking all he can and abandoning ship.
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GST is a serious matter but the general Malaysians are not made aware of it. After all, tax is a complicated matter. And most will choose to ignore it although it affects the dough in our pockets. Taxes are just not our daily comic strip readings.
There is nothing wrong with GST. The government needs taxes to run the country. But the question is, is Malaysia ready for GST?
To debate on this question, we first need to understand what GST really is.
GST is nothing and should not be anything but an ALTERNATIVE TAX COLLECTION METHOD. Right now we have taxes in the forms of corporate tax, personal tax, withholding tax, real property gains tax, service tax etc. Taxpayers go all out to reduce their taxpayers (naturally) via loopholes in the system or through out right illegal means. This is where GST comes in. It ensures a more efficient collection of taxes by the government by having value adding points collect taxes from their customers on behalf of the government. GST should not be a new source of tax revenue for the government that adds on to its coffer.
With GST, the person who sold you the goods or services is now tasked to collect your taxes on behalf of the government and then remit it. The underlying objective is that the collection will be more efficient when the collection ‘agency’ is now no longer paying from his own pockets (there is no heart ache involved). He is merely collecting from his customers; if he fails to collect then he gets penalized – so obviously there is not going to be much incentive for the seller/provider to not want to collect the taxes for the government. If you understand this, then you will see that this is actually a good system. How efficient is the government in utilizing this money is another subject – we are talking about the theoretical effectiveness here.
I mentioned that GST is an alternative tax collection method. It should NOT be an additional tax. But this does not seem to be the case with Malaysia.
With GST, if I were a taxpayer paying RM5,000 per annum, an efficient GST system should not cause me to pay significantly more or significantly less taxes than I previously did. If I were a non-taxpayer, GST should not cause me to have to pay any new taxes. In an efficient market with GST, the only way the government should be able to add to her tax revenue is via the closing of tax loopholes.
Now, how many percent of Malaysians are taxpayers? I do not have the figures but the figures being bandied about is about 15% to 20% of Malaysians only. That means 80% to 85% of Malaysian are not taxpayers. But with the introduction of GST, all Malaysians will be taxpayers. Every time you buy a can of Coca-Cola, you get taxed. Every time you buy an ikan kembung, you get taxed. Every time you buy a karipap, you get taxed. So what we have now are non-tax payers paying taxes at inflated selling prices. Prices are inflated as everyone in the supply chain of production and distribution have to pay taxes to the guy below him in the supply chain. So, you have taxes added on and on and on. And you finally pay the makcik additional 4% tax on her new inflated price.
GST will work if and only if the country is one that is of high per capita income. Quite simply, a developed country. That is because when the average income per head is high, chances are most of its people are already taxpayers. And by implementing GST, the personal income tax rates will be reduced to compensate for the alternative GST. Remember, GST is but an alternative form of collection – not a new form of tax.
If we were to implement this 4% GST, personal income tax must be brought down to below 20%. By this the higher income earners will not have their positions changed. The brackets for the lower income taxpayers must also be enlarged so as to enable more taxpayers to fall into the lower tax brackets. This is not a suggestion – but is a must. Look at countries like Hong Kong and Singapore where GST have been implemented. Their highest income tax bracket is at mid-10%.
But even with the reduction of tax rates and changes in tax brackets, we still do not solve the problem of non-taxpayers. How is the government going to exempt them from paying taxes now? You cannot have a GST exemption card being distributed to certain income group can you? The lower income group is not paying taxes because they are not earning enough. They are low income earners. The taxes are meant to subsidise them. The rich subsidises the poor, remember? Why is the government now trying to drive the lower income group to the edge by increasing prices and imposing taxes upon them. GST implemented this way will then be inefficient and is a departure from the very objectives of GST and the key pillars of the tax system.
What is the solution? Sadly, there is no solution. There is no solution because GST is simply not suitable for Malaysia now. We are not a country that is ready for GST. GST is only effective and efficient in an environment where the people are high income earners where most of the population are taxpayers. And we are not! There is just no 2 ways about it. Our government must go back to the drawing board and first understand the meaning of the word ‘tax’. (Ahem… actually we already know that Najib and goons think that tax means money in their personal bank accounts. Farkers!)
Do not take GST likely. Something as simple as 3 alphabets will turn the country upside down. When the under-privileged in the society forms the mass of the numbers, forcing them up the wall will only bring trouble. When the people could no longer afford to buy rice, petrol, clothes and all other necessities, all hell will break loose. We have seen enough examples in the recent past with Indonesia a decade ago being the best example. Are we willing to risk all this just so that the greedy ruling government is able to pocket more ringgits in their personal bank accounts?
Maybe we should we all join Tok Guru in his prayers regardless of if you a Muslim, Buddhist, Taoist, Hindu, Catholic, Protestant, or Sikh? After all, tax knows no religion.
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