Malaysia First pointless political move
Three weeks back, we had the budget and all it entails. Yet few (you know, people who otherwise would have a life) noticed that the leader of opposition presented his budget just before. Apparently, it is to prove that DAP has enough technocrats to govern the country and make it all peachy and nice.
Yay! An alternative to Barisan Nasional!
Err, or is it? Part of the problem in Malaysia is that the opposition doesn’t have the basic information the Ministry of Finance has to draft a budget. Yes, it’s unfair, it’s wrong, it’s not very democratic. Look, Malaysia is an authoritarian state, shocking isn’t it? That there’s no level playing field?
Yes. But it also means that the DAP’s budget is meaningless. It’s more of a early Christmas wishlist, “Oh, oh, lets have another rail line in the Klang Valley – one that three people would use daily! Three people!” Not so much of technocratic skills being put on display, yeah?
But instead what do we have from DAP? Yes, they want to remove taxes for the poor. But they would also increase taxes – substantially at that – for the middle class. The problem that the rich like Ananda Krishnan paying very little in proportion to his income in taxes would not be solved (in the government’s budget, the government is actually shifting more and more of the tax burden to the middle class).
The problem with Malaysia is the heavy involvement of the state in the economy, setting wholesale prices of chickens to forcing Petronas to subsidize imported gas. Furthermore, it runs on a keenly Keynesian manner, government expenditure is increased for “economic development”.
Economic development does happen when the government borrows and throws it into the economy. However it crowds out consumers and firms, actually lowering real wages and private investment (yes, that’s probably the only thing I learnt in ECON 102 Intermediate Macroeconomics, I’m so sorry Prof Jacquet).
Back to DAP’s Malaysia First budget, it’s not to say there aren’t good ideas in that budget (like subsidized student loans by private banks) and it could probably be better than what we have from Pak Lah’s (hopefully last) budget. Despite all that, Big Government would still reign in Malaysia with a DAP government, albeit with better, seemingly more forward looking, policies.
In DAP’s budget, for one, there’s no talk about scaling back things like import tariffs or price controls – things that probably have a higher net effect on the general population than highway toll.
Even so, the opposition budget’s is merely a laundry list of what DAP wants, rather a realistic view of what Malaysia can afford at this present time. Not really DAP’s fault, as said, but nobody is forcing DAP to present their own budget.
What we do need is a liberal base within Malaysia. We have social democratic versus a rojak of nationalism and populism (oh, and for my PAS readers, Islamist fun). What we need in Malaysia is a clearly liberal party, one willing to scale back Malaysia’s humongous government.
(DAP’s Malaysia First budget is available here with stock photos!)
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other than criticising other people’s efforts, what do YOU actually do to make a difference in our beloved bolehland?
Penny:
Didn’t Rajan just give examples of good ideas the DAP had, and present his own idea of what an alternative economic policy should be?