Can’t Ignore Economic Challenges – Is there a Bipartisan hope?

Although the Rakyat in Malaysia has been feeling the strain from the inflationary pressures largely impacted by the global financial challenges as well as the unnecessary large fuel price hike in June, our cost of living has skyrocketed and our standard of living has plummeted.

We feel the pinch (correction: punch) of the economic contraction on the street first and this is certain in everybody’s daily lives.  Everything edible or inedible has gone up except salaries.  Even of late, housing loan repayments have gone up too.  Our propensity to spend has diminished.  That also means the propensity to save has diminished too.  And this time round, it is significant.

However the Government tries to persuade the Rakyat the opposite will not work because the stark reality has set in to all walks of life.  Inflation is nothing racial or religious or political.  What we face in economic and financial challenges has no color or creed.  But how we are equipped to face up to it should not either and our economic policies and execution should be for all Malaysians.

The Economist Intelligence Unit has published another wake up call.  Carried by TheMalaysianInsider (read here), this report pointedly tells us Malaysians that what we are told by the Government is just not true.  Here is a summary:

Wake Up Call – Mathias Chang

In an excellent recent article by Mathias Chang entitled “Flip-Flopping Fairy Tales – Malaysia Will Not Have 3.9% Growth In 2009 – Accepting Reality Is Not Pessimism, Giving False Hopes Is Not Optimism” , he challenges the nation’s leadership’s position of ostrich economics.

Surely, his grave warnings may sound like doomsday prophecy and may be brushed aside as wild speculation.  Surely, the Badawi Administration can come out and say quite the opposite that all will be well and Zeti says we will not be in a recession next year.  Yes, people in the right places can come out saying almost anything about the well-being of our economy.

But guess what?  Only we the Rakyat will know and has known for a while now that tough times have arrived and tougher times ahead.  It’s not about talking ourselves into a recession but to face the realities and do the right things.

Here are some of Mathias Chang‘s predictions (read here):

1. by H1 of 2009, the KLCI will drop below

Najib’s Rise Amidst Allegations Uncleared

Najib is now the only nomination for the Umno President post and come next March at the Umno AGM, Najib will be officially named the next Umno President to succeed Pak Lah.  It appears that the passage for Najib is safe, for now.

Can there be anything that can throw off his equilibrium, detract him from his path to glory, obstruct his ambition to become the next Prime Minister of Malaysia?  With the historical “wasted” Altantuya case being the longest in Malaysian history, Razak Baginda was aquitted and nobody was found guilty.  150 days of trial down the drain and paid for by tax payers money.  Will the allegations return to haunt Najib?

Malaysia Most Risky in Weathering Financial Crisis

UPDATED: Anil Netto wrote an excellent article entitled “Malaysia’s Ostrich Economics” much along the same lines of this posting (read here).  It was originally posted at Asia Times Online.

The Straits Times (Singapore) reported today (read here):

On a scale of zero for the least risky to 10 for the most, Singapore scored 2.76, followed by Australia (2.9) and Hong Kong (3.23). Most risky are India (6.87), Thailand (6.28) and Malaysia (6.07). They are vulnerable not so much to the financial fallout but due to internal developments, the report added.

Regardless of what Najib wants us to believe, come November 4 in Parliament, he will have to be candid and honest about the state of affairs in Malaysia.  If he is wanting to be the next PM, he has to be seen to know what he is talking about and do something affirmative and not skirt around the issue or remain in a state of denial.

Economic Problems Felt, Umno Politics Takes Front Seat

Today‘s NST front page:

KL Composite Index loses 3.6% to 859.11 … analysts say the markets haven’t seen the worst yet … the Malaysian market is not an exception.  The shares are oversold.  They no longer reflect their values.  We now have plenty of cheap, quality and undervalued stocks … but expect it to fall further next week,” a local dealer said.

This 32.2 points down is the KLCI lowest in 4 years.  We don’t want to be duped and lulled into a dream that Malaysia is not in a problem state.  At the same time, we should not be doomsday prophets either.  We just need to be honest and do something about the economy NOW!

But is the Government SEEN to be doing much?  We’ve been hearing a lot about not to worry but economics is not requiring counselling.  The Malaysian economy requires definite strategies and actions.  But is there any?

Can Pak Lah Be PM and not Umno President?

Cheeky thought indeed.  A fellow blogger had posted a similar thought here.  After all, we had assumed that when Pak Lah announced he wasn’t defending his Umno Presidency.  We assumed the next Umno President will traditionally be the BN Chairman and then the PM of Malaysia.  And that person perhaps may be Najib himself.

What Pak Lah clearly said was that he wasn’t defending his post in Umno but he didn’t say he was stepping down as the PM.  Is what he didn’t say important?  We should not assume too much

Why is DPM Najib innocent if PM Badawi is faulted?

Mahathir along with a host of Umno Supreme Council members have continuously blamed Pak Lah for the historical loss in the General Election in March 2008 as well as the homecoming win of Anwar at Pematang Pauh in August 2008.  The general tenor of the fury points to Pak Lah’s inability to win votes and garner the support of the people anymore.

However, did we all forget that behind Pak Lah has always been Najib, the DPM, current Finance Minister and former Defense Minister.  In a team of PM and DPM, why is the finger only pointed at the PM and not the DPM?  In fact, the strangest thing is that the one who may have instigated the finger and pressure on Pak Lah is Najib himself.  The DPM is considered blameless in his supposedly unwavering support of the PM?  How can it all be the PM’s fault, if any, and none on the DPM?

Pak Lah’s Legacy? He doesn’t care?

This indeed so strange for a Prime Minister to say.  Pak Lah says he is not bothered with what people will think of him as the PM of Malaysia in the years to come.  Legacy is something everyone should be concerned about.  It is what the individual has done to make the world a better place.  What more a PM who has the power to make a lasting impact on Malaysia as a country.

Pak Lah made many election promises in 2004 which resulted him winning the most votes any PM had done so in the history of Malaysia.  During the four years, none of the reforms he promised which won him those votes materialized although they were much publicized for the wrong reasons like the Lingam scandal.  This year, 2008 March, four years later, Pak Lah again made history winning the least votes any PM had done so in the history of Malaysia.  Not only that, he also lost 5 states (Selangor, Perak, Penang, Kedah and Kelantan) and the KL Federal Territory.  That’s also the most territory a PM in Malaysia has lost, these being the most developed and richest states.

Is this the only legacy Pak Lah is leaving?  Winning the most votes and also the least votes in the history of Malaysia?

Finally Pak Lah Says It

Today, Pak Lah finally said it.  He will not defend his Umno President post come next March.  The MalaysianInsider reported (read full article here)

“I will not stand for the presidency of Umno in the coming elections. My current term as Umno president ends in March next year,” he told reporters after the meeting.

Pak Lah: You Wait Lah

It’s time to dissect Pak Lah’s latest press briefing.  Of course, it is about whether he will defend his Umno presidency.  So let’s read his lips again.

Source: The Star Online

KUALA LUMPUR: Datuk Seri Abdullah Ahmad Badawi will announce whether he will defend his Umno presidency by tomorrow.

Actually, Pak Lah never said he will do such a thing by tomorrow (Wednesday).  In fact, this is just a supposition.  He said he will do so in another day or two or three.  What does this mean?  Merely that he will announce it when he feels ready to do so.  Read on.