Play Safe "Joke" Budget 2011, Another Year Wasted

Source: Malaysiakini

Our dear PM Najib has just unveiled Budget 2011 which is known as a precursor in our final efforts in achieving Vision 2020. Before that, remember I once talked about Our Budget.  

In 2003, we spend RM75bil on operating expenditure vs RM40bil on net development expenditure. ~50% ratio.

In 2008, we spend RM150bil on operating expenditure vs RM42bil on net development expenditure. ~28% ratio.

In 2011, we will spend RM163bil on operating expenditure vs RM49 on net development expenditure. ~30% ratio.

We are heading to the same shithole lo. This is like a situation whereby you own a house (country), you pay more on your bills (operating expenses) than to renovate or upgrade features in your home (development allocation). It is a fail-proof plan again and again. The budget list is comprehensive as such I will only highlight the ones which I find it good and stupid. For those reasonable well and not too shabby will be ignored. For the full budget list you can get it HERE.

Source: Malaysiakini

RM5 bil new tower in KL. A new landmark, the Warisan Merdeka, to be developed by Permodalan Nasional Berhad (PNB), is expected to be completed in 2020 and will include a 100-storey tower, the tallest in Malaysia, which is to be completed by 2015.  

Extremely Stupid. WTF do we need another landmark when the twin towers has succeeded in putting Malaysia in the world map? This is not a mega-project, it is mega-corruption.

Source: Malaysiakini

The Mass Rapid Transit project is to be implemented beginning 2011 with a private investment of RM40 billion and is targeted to complete by 2020.  

Stupid. Waste of $, furthermore it is not an open tender project sigh..The current LRT system can be upgraded and the extension works is still in progress.

The Academic Medical Centre, a joint-venture between Academic Medical Centre Sdn Bhd and John Hopkins Medical International as well as Royal College of Surgeons, Ireland, that will involve private investment of RM2 billion. Development of an International Islamic University Teaching Hospital in Kuantan and a Women and Children's Hospital.  

Good. Human capital development is key in building a knowledge based society.

EPF overseas investments will be increased from seven percent to 20 percent of total assets managed.  

Good. But this should have been done during the 2009 crisis as the returns would be astronomical for EPF. Though I feel that 20% is a lil high because fundamentally it should not take on too much risk as it a retirement fund. Nevertheless 20% should be the most I would agree.

GLICs (government-linked investment companies) will divest shares in major companies listed on Bursa Malaysia to increase liquidity and trading velocity. Government to issue three new broker licenses to local, foreign or JV companies.

Good. This will inject fresh new liquidity and make our Bursa more attractive & encourage retail (people like you and me) market participation.

Import duty and sales tax exemption on broadband equipment will be extended for two years until 2012.

Good. More encouragement of broadband infrastructure building particularly on techs like Wimax and the possible Long-Term-Evolution (LTE).

The basic minimum wage for security guards is to go up to between RM500 and RM700 depending on location, compared to RM300 to RM400 previously. Monthly allowance of community leaders (JKKK, village heads, Tok Batin, etc.) is to be increased to RM800 from RM450. Meeting attendance allowance is also increased from RM30 to RM50. Imams' allowance will be increased from RM450 to RM750, KAFA (religious school) teachers' allowance also goes up to RM800 from RM500.

Good. We need minimum income level policies and ensure that every profession gets fair treatment in terms of benefits and allowances. Min income policies is a need in order to reflect that the country is able to go to the next development stage from middle income to high-income status.

Fully-paid maternity leave for civil servants is to increase to 90 days compared to the previous 60 day.

Good. Women's right. Though this might has some side effects such as less preference to female workers by companies.

And Stupid. Talk about inequality, what about female workers in companies? They do not have such privileges.

RM15.86 billion will be allocated for the Prime Minister's Department. The allocation was RM14 billion in 2009 and RM12 billion in 2010.

Extremely Stupid. Just how big does the government plan to grow the civil service? A staggering 10% of the workforce is to the civil department. Unlike the United States where Intelligent departments accounts for most of the workers, are we at war? Where is the call for being efficient and cutting red tape? 

The scheduled hike in toll charges for four highways owned by Plus Expressways Bhd will be frozen for the next five years.

Stupid. PLUS is already a cash cow company which is not surprisingly owned by rich..ahem you know la. Why is it so hard to reduce the toll rates? Instead you said no hikes, that's simply not good enough. If the government is truly for the 'rakyat' please go and buy the concessionaires instead of paying them our money to compensate for not having them to increase the price in accordance to the contract.  

Source: Malaysiakini

First-time homeowners will enjoy a 50 percent discount on stamp duties for homes below RM350,000.

Good. It will help young graduates for affordable housing but with no changes to RPGT nor any confirmation of adjustments in the LVR I am afraid that decent housing below RM350,000 is next to impossible to source especially in Penang and KL.

Import duty on approximately 300 goods preferred by tourists and locals, currently at 5% to 30%, will be abolished.

Good. Indirectly increasing disposable income but I am not sure if the retailers will reflect price reductions in their goods. Only time will tell.

Service tax will be increased from 5% to 6%. The government proposes to impose service tax on paid television broadcast services. 

Stupid. Cut down your operating expenses & civil service size you moron! Why hurt people who you encourage to spend more by increasing the service tax? You took another step further by proposing to kena tax for watching Astro? Oh I forgot we don't have any other choice except that lousy paid television.

Overall the budget was pretty disappointing. The government rolled out a 2011 budget that skipped structural reforms demanded by investors and relied on infrastructure spending and raising incomes to fuel economic growth ahead of polls expected next year. Trying to fish votes to keep the current government in Putrajaya yay. In other words, you put yourself first in line before the rakyat. Bravo, I think you just signed your own death certificate.

With such dismal budget line ups, I would think that the upcoming Government Transformation Plan will be another disappointment. Pumping money into infrastructure spending is not going to turn us into a K-economy. To add on, it does not even help locals much in boosting their income level or spending power simply because the construction workers are not even our own people. The two key problems we have been facing for years is still not resolved nor being looked at: burdening operating expenses and too much infrastructure spending.

Sad day indeed...what else is there to say?