Perhaps those living in Klang Valley have yet to feel the powerful impact of the global financial crisis, as shopping malls are still packed with shoppers. But in smaller towns, residents are already feeling the pinch, especially in areas which rely heavily on commodities.
The finance ministry recently announced a series of disappointingly impractical economic stabilisation plans, which do not offer real solutions to tackle the root cause of the problem.
In the midst of a global crisis that is fast storming our region, the government has come up with a solution that is either too optimistic, or too unrealistic.
At least few issues warrant some urgent attention, such as to ensure that we won't see a new wave of layoffs, to reduce our dependence upon foreign workers and to stabilise the ringgit exchange rate.
Where employment is concerned, Malaysians are facing risks of losing their jobs, as some 8,000 employees were retrenched in August alone, while the 300,000-strong army of Malaysian workers in neighbouring Singapore stand the risk of being dismissed any time.
"Reducing the number of foreign workers will also ensure that our foreign reserves will not be drained overseas."
Meanwhile, with the government facing fiscal problems, some 50,000 public servants may also lose their jobs.
Under such circumstances, it is imperative for the government to repatriate some 2.2 million migrant workers in stages as it returns the job opportunities to Malaysians.
If the government is not going to take the action right away, the laid off foreign workers will pose a serious threat to the country's public security if the economy takes a turn for worse.
What the government cannot afford to neglect is that the most vulnerable group in the event of an economic slowdown will be the poor people who are unskilled, uncompetitive and of low educational levels. As such, the proposed RM5bn fund intended to be injected into the equity market should have been utilised instead to set up assistance fund for the underprivileged.
Reducing the number of foreign workers will also ensure that our foreign reserves will not be drained overseas. Our foreign exchange reserves have been slashed further by RM7.5bn as of mid-October, while foreign workers siphoned some RM9.12bn out of the country during the first half of this year.
If the country continues to "bleed" this way, the local currency will depreciate to 3.65 against the greenback next year.
Minus the protective shield of the "double oil" (petroleum and palm oil), our tax revenues have shrunk significantly. If the government remains indolent in initiating the contingency plans, including changing the work attitude of public servants and enhancing productivity, how do we expect it to maintain this massive 1.2 million team?
The government so far still clings on to its racist policies. If we do not open up, we will definitely not be able to lure more foreign investors to our shores.
Although the DPM has said he is prepared to abolish the new economic policy, he fails to offer a deadline, and the country simply does not have too much time to wait.
Perhaps the financial crisis is not the most horrendous, but our attitude. If we do not take this crisis seriously, we will have to take a much longer time to deliver ourselves out of the current doldrums. If the recession lasts more than three years, it will certainly impact on BN's preparations for the next general elections.
Singapore is a country we should really emulate. Whenever a crisis strikes, its government is always fast to jump into action, and can therefore bring the destruction to minimum.
If the government is prompt in action, it should be able to further consolidate public confidence.
(By LIM SUE GOAN/Translated by DOMINIC LOH/Sin Chew Daily)
MySinchew
2008.10.25
PEOPLE'S POWER
There is a principle called Ockham's razor which is attributed to the 14th-century English logician and Franciscan friar, William of Ockham. It basically states that – "All other things being equal, the simplest solution is the best."
ReplyDeleteThe following are two simple ideas that effectively create the ideal social construct.
Simple Idea #1
1. Socialize ALL Land
2. Charge leases on ALL Land based on demand.
3. Return 100% of the resulting revenue to every man, woman and child in the form of a yearly dividend check.
4. Make the Universal Birthright of Land an Everlasting Standard in the education of every Child.
This effectively makes the average piece of Land Free for every Living Soul and restores our Natural Birthright as well as coupling our social construct to the Principles of Life.
Simple Idea #2
1. Remove EVERY FORM of tax
2. Implement a Tax on ALL new goods based on the resources they contain and the resources they use in production and delivery (this can easily be implemented with the current barcode system used at the checkout)
3. Use this system to encourage/discourage various resource usages (High tax on non-renewable/ecosystem damaging products and low/no tax on renewable/ecosystem enhancing products) and to encourage purchasing of local products.
4. Use the resulting revenue to fund infrastructure expenses and the restoration of ecosystems.
This effectively encourages the creation/use of longer lasting, high quality products as well as encouraging recycling and reuse of existing products.
Idea #2 effectively constrains the ravaging appetite of the capitalistic consumer society within the Boundaries of Sustainability while Idea #1 effectively encloses both Sustainability and capitalism within the Principles of Life.
That's it!!! Simple and Effective
A Friend