Back to the future for Malaysia

Earth-shattering news: The aftershocks of the general election are not over by any means. Voter turnout declined by 8.84 percentage points from 84.8 in 2013 to 76 this time around.

MOST Malaysians, including myself, went to bed in the early hours of Thursday morning after hearing the news that the Pakatan Harapan coalition of four parties had won a simple majority of 113 seats out of the 222 parliamentary seats contested in the 14th General Election.

It was earth-shattering news that the Barisan Nasional that had ruled Malaysia for 61 years is now in opposition.

The 92-year-old Tun Dr Mahathir Mohamad has just been sworn in as the seventh Prime Minister of Malaysia, after having served 22 years as the fourth Prime Minister from 1981 to 2003.

In 2016, Dr Mahathir quit Umno and came out with the former Deputy Prime Minister Tan Sri Muhyiddin Yassin to form Parti Pribumi.

The Pakatan coalition comprises Parti Primbumi, Parti Keadilan Rakyat led by Datuk Seri Anwar Ibrahim’s wife Datin Seri Dr Wan Azizah Wan Ismail, DAP and Parti Amanah Negara. The last comprises a faction that split off from PAS.

Going forth, there will be a period of political crossovers in which each party tries to bolster its majority at the parliamentary and state levels.

The aftershocks of the general election are not over by any means. My preliminary analysis of the published and available data on the elections showed that voter turnout declined by 8.84 percentage points from 84.8% in 2013 to 76% this time around.

Despite this, the total votes cast in the Parliamentary election were 11.93 million, or roughly 671,000 more than 2013. Out of this, Pakatan got 5.24 million or an increase of 1.25 million votes (over the votes cast for PKR and DAP in 2013) to 43.9% of total votes cast.

In essence, Barisan had a swing against it of just under one million votes to 4.24 million or 35.53% of the total votes cast.

In addition to the rejection of the past government on issues that include the 1MDB scandal, three key trends can be discerned from this year’s general election, which was orderly and surprisingly quiet on polling day, since there were few of the usual rumbustious rallies that followed past elections.

The Malaysian electorate has become mature, learning to be cautious and yet bold in voting for change.

First, it was clear that the urban voters swung decisively to the Pakatan coalition. This trend was clear for quite some time, as the urban population increased with the rural-urban drift.

Umno has traditionally depended on the rural vote for its support, but relied on its urban partners, the MCA, MIC and Gerakan to bolster the urban vote.

This time around, the MCA, MIC and Gerakan were almost wiped out at the polls, with the MCA and MIC party leaders losing their seats and Gerakan winning no seats at all.

This meant that the decisive gains were achieved in the more densely populated states in the West coast of Peninsular Malaysia, particularly with stronger majorities in Penang and Selangor, Negri Sembilan and Johor.

The last was the birthplace and stronghold of Umno, but this time round, even the veteran MP for Johor Baru Tan Sri Shahrir Samad lost heavily.

What was pivotal was the voting in Sabah and Sarawak, which together carried 56 Parliamentary seats and were considered safe “deposits” on which Barisan could rely to carry a majority.

In the end, Pakatan and its ally, Warisan took 24 parliament seats.

Secondly, PAS, the Islamic party that focuses largely on religion, dropped a net of three Parliamentary seats, but took back Terengganu, so that it once again controls two states (Kelantan and Terengganu).

It was clear that the breakaway faction Amanah was not able to draw away sufficient hardcore votes to weaken PAS.

The PAS support amounted to 2.01 million or 16.88% of total votes cast, an increase compared with 1.63 million votes or 14.78% in 2013.

What the rise of Pakatan means is that the urban Malay voters had elected for a change of government and improvements in economic livelihood rather than voting along religious affiliations.

The non-Malay vote, on the other hand, were put off by PAS push for hudud laws and were uncomfortable with Umno’s flirting with PAS on areas touching on religion.

Third, what this general election has done is to bring more new faces and talent into the political arena.

One of the weaknesses of multi-party politics is that under conditions of uncertainty, the tendency was to rely on recycled politicians, rather than experiment with younger professionals.

The new government has the opportunity to engage in generational renewal by bringing in younger leaders from more diverse backgrounds into positions of authority on change at all levels.

Time is of the essence, as Dr Mahathir has promised to stay on as Prime Minister for two years, before passing the baton to Anwar who will be 73 by then.

Nothing would signal more the restoration of the rule of law than the immediate release of Anwar from jail.

To safeguard his legacy, Dr Mahathir has now an unique and historic opportunity to address many of the issues that festered when he was Prime Minister for the first time. If the rule of law has weakened, it was partly because of the controversial steps he took to intervene in the legal institutions in the 1980s.

He needs to strengthen the very institutions that protect the rule of law which he now upholds.

On the economic front, he has inherited an economy that has grown by 5.9% last year, but as the saying goes, the GDP numbers look good, but the people feel bad.

With oil prices back up to over US$70 per barrel, and Malaysia as a net energy exporter, the economic winds are favourable for making the necessary tough reforms.

Cutting GST may be popular, but one has to look closely at the fiscal situation more prudently for the long haul.

How to create good jobs in an age of robotics, even as more youth enter the labour force, is a pressing challenge not just for Malaysia, but throughout the developing world.

On the foreign affairs front, Malaysia will have to navigate between the growing tensions between the United States and China.

Given his feisty style, Dr Mahathir has not been known to mince his words about what he thinks about the South China Sea or for that matter, where Malaysia stands as a leading voice in the South.

In her unique way, Malaysia has voted for a generational change, but with the oldest leader managing that transition. Most new governments find very short political honeymoons, as expectations are now high on delivery. It is always easier to oppose than to propose and implement.

How smoothly that transition occurs will have huge impact not only on Malaysians, but the region as a whole.

By Andrew Sheng who writes on global issues from an Asian perspective.


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MALAYSIA’S poor handling of public finances is a subject matter that has very often lit controversy. It is not only during the Datuk Seri Najib Tun Razak government but stretches back to the days of our new ‘old’ Prime Minister, Tun Dr Mahathir Mohamad.

 

My wishlist to the new government

An efficient and business friendly civil service will help the SME community greatly.

 

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TUN Dr Mahathir Mohamad is back in action and with lots more gusto too, at 93.

Jobs ahead for Pakatan's first 100 days fiscal reform

Dr Mahathir moves swiftly to inject confidence and stability into the market

WHEN the results of the 14th general election were finally formalised early Thursday morning, showing that Pakatan Harapan had won and would form the new government, there was a sense of excitement among its voters over the reforms promised by the incoming administration.

At the same time, that wave of buoyancy was tinged with worries of uncertainty. Malaysia was taking a path not traversed and for financial markets, anxiety is something they have never digested well.

Prime Minister Tun Dr Mahathir Mohamad since then has moved swiftly to inject confidence and stability among investors and the population.

His swearing in as PM and the announcement of key ministries in the Cabinet will help in soothing nervy investors ahead of Monday when the stock market opens.

Strong track record: Dr Mahathir at the swearing in ceremony as the 7th Prime Minister. He expects the stock market to see its capitalisation increase over time. — Bernama

 
The early movements of the stock market will be closely watched and that is something Dr Mahathir too has quickly sought to assuage. He tried calming anxious investors by saying he expects the stock market to see its capitalisation increase over time. He also assured businesses and investors that Malaysia remains business-friendly and the economy is among his top priorities.

Hints of what businesses and investors can expect are laid out in Pakatan’s manifesto and its to-do list within the first 100 days. Central among the pledges is the confirmation that the unpopular goods and services tax (GST) will be cancelled and replaced with a sales and services tax (SST).

The other measures it intends to carry out in the initial period is to reduce the cost of living, stabilise the price of petrol and introduce targeted petrol subsidies, abolish unnecessary debts that have been imposed on Felda settlers, introduce EPF contributions for housewives, equalise the minimum wage nationally and start the processes to increase the minimum wage, postpone the repayment of the National Higher Education Fund Corp or PTPTN for all graduates whose salaries are below RM4,000 per month and abolish the blacklisting policy.

It also plans to set up a Royal Commissions of Inquiry into 1Malaysia Development Bhd, Felda, Mara and Tabung Haji and reform the governance of these bodies. A Special cabinet committee to properly enforce the Malaysia Agreement 1963 will be set up. There are plans to introduce the Skim Peduli Sihat with RM500 worth of funding for the B40 (low-income) group for basic treatment in registered private clinics, and initiate a comprehensive review of all mega-projects that have been awarded to foreign countries.

What impact the measures will have on government finances is another source of uncertainty but Socio-Economic Research Centre executive director Lee Heng Guie feels it’s too early to assess any impact. “We will have to wait and see if Pakatan will table a new budget. The current estimates are based on the old budget, but I believe the Pakatan budget will continue with fiscal consolidation,” he says.

Pakatan’s alternative budget projects for a smaller fiscal deficit of 2.04%.

AmBank Group Research chief economist Anthony Dass says there needs to be some clarification on the new government’s policy and strategy without risking the ratings.

“Removing the GST and introducing the SST and other subsidies will act positively on the economy, as they help to improve the disposable income of households, and thus, spending. This will help buffer any shortfalls from the GST. Besides prudent financial management as we have seen in Selangor and Penang, a more transparent public procurement system or tendering process will improve competition and lower margins for players and ease budget strains,” he says.

Improving disposable income: Central among the pledges is the confirmation that the unpopular GST will be cancelled and replaced with the SST.

Fiscal implications

Among the to-do list for its first 100 days in office, it is the promise to repeal the GST that has rating agencies worried.

“We are closely following the developments around some campaign promises that could have a negative impact on market sentiment and trigger volatility in the financial markets. These dynamics will take time to unfold and a lot will depend on what the new Government unveils in the coming weeks and months,” says Moody’s Investors Service Financial Institutions Group vice-president Simon Chen in a statement.

“If investor sentiment worsens materially, we will see increasing risks of capital outflows and a further weakening of the ringgit, that could in turn dampen private-sector consumption and operating conditions for banks in Malaysia.”

He did, however, say that Malaysia has weathered challenging periods, in particular, during the 1MDB scandal.

Fitch Ratings in a statement says the May 9 results means a higher likelihood of fiscal and economic policy change.

 “The extent to which the new government’s agenda will shift major policy is uncertain, but the Pakatan victory and its policy platform indicate a much greater potential for change. In the meantime, Fitch will monitor the new Government’s policy agenda as it evolves,” it says.

It views policy slippage leading to deterioration in fiscal discipline and higher government debt or deficits as a negative rating sensitivity.

“Among the most notable proposals is the replacement of the GST – a value-added tax launched in 2015 – with the narrower SST that had preceded it. The GST has become a key source of government revenue, accounting for 18% of total revenue equivalent to just over 3% of gross domestic product (GDP) in 2017.

“By comparison, the SST accounted for only 8% of total revenue and 1.6% of the GDP in its last year, 2014. As such, absent offsetting measures, the replacement of the GST would result in a correspondingly higher deficit,” it says.

Lee: We will have to wait and see if Pakatan will table a new budget.

Fitch points to another significant proposal, which is to reinstate some of the fuel subsidies. It says that if fuel subsidies were to be reinstated, they could offset some potential budgetary gains from rising oil and commodity prices.

Maybank Investment Bank in a report says that the removal of the GST will mean a projected revenue loss of RM44bil based on the current budget estimates. It says that even if the GST is replaced by the SST, which brought in RM17bil in 2014, there could be a prospective loss of RM27bil in government revenue and that could lift the budget deficit by 1.9 percentage points.

The report, however, does point to Pakatan’s alternative budget released in October 2017, which says that abolishing the GST will stimulate the economy and raise other tax revenues by boosting consumer and business activities. It says tax revenues will rise from better economic growth, higher receipts of corporate income tax, real property gains tax and other sources of income.

Government expenditure is also expected to drop by cutting certain allocations such as for the Prime Minister’s Office that can help buffer the cost of the GST removal.

It says that operating expenditure could be improved by having open tenders and the rationalisation in non-critical spending from supplies and services, which accounts for 14.4% of operating expenditure, grants and transfers to state governments and statutory bodies (9%) and the others’ category (7.8%), which consists of grants to statutory funds, public corporations and international organisations as well as insurance claims and gratuities.

Higher oil prices, however, are a revenue source for the Pakatan government and can help mitigate the loss of income from the removal of the GST. Maybank’s analysis shows that for every US$10 rise in the crude oil price, government revenue will rise by between RM7bil and RM8bil. That increase will have to be balanced out by the Pakatan manifesto’s pledge to give higher royalties to Sabah and Sarawak, and petrol subsidies.

Growth direction

Fiscal consolidation will mean there will likely be an impact on economic growth, as government expenditure plays an important role in generating growth. Economists are, however, optimistic that consumption boost from lower prices from the removal of the GST will help buffer any shortfall from spending.

They feel that the policies that will be rolled out in the coming months will be positive for the market and economy.

“We reiterate our -2.8% budget deficit to GDP for 2018 with the GDP to grow around 5.5%, supported by domestic demand and exports on the back of a stronger global GDP,” says Dass.

“We foresee better management in the operating expenditure with a more transparent procurement system or tendering process and efficiency in development expenditure projects and targets.”

Maybank is keeping its 2018 growth target at 5.3%, pending details on Pakatan’s economic policies.

“We are neutral to positive on the consumer spending growth outlook, based on Budget 2018 and Pakatan’s GE14 manifesto on measures to address living costs and boost disposable income. The main issue on the growth outlook now is investment, as businesses adopt a ‘wait-and-see’ stance and amid potential government reviews of several China-linked infrastructure projects and investments,” it says.

The investment climate, though, will be crucial in generating higher economic growth for the new government.

Lee says investor-friendly policies are important and the next three to six months will be important after Cabinet positions are filled and their work starts.

“Dr Mahathir’s strong track record, added with Datuk Seri Anwar Ibrahim as the prime minister-in-waiting and the maturity of Malaysians as reflected in this GE, augur well for the country. These are positive signs on the business and consumer confidence,” says Dass.

“This will help the investment mood to improve and the pick-up in capital expenditure.”

By jagdev singh sidhu, The Star


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MALAYSIA’S poor handling of public finances is a subject matter that has very often lit controversy. It is not only during the Datuk Seri Najib Tun Razak government but stretches back to the days of our new ‘old’ Prime Minister, Tun Dr Mahathir Mohamad.

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Back to the future for Malaysia

Earth-shattering news: The aftershocks of the general election are not over by any means. Voter turnout declined by 8.84 percentage points from 84.8 in 2013 to 76 this time around.

MOST Malaysians, including myself, went to bed in the early hours of Thursday morning after hearing the news that the Pakatan Harapan coalition of four parties had won a simple majority of 113 seats out of the 222 parliamentary seats contested in the 14th General Election.

It was earth-shattering news that the Barisan Nasional that had ruled Malaysia for 61 years is now in opposition.

The 92-year-old Tun Dr Mahathir Mohamad has just been sworn in as the seventh Prime Minister of Malaysia, after having served 22 years as the fourth Prime Minister from 1981 to 2003.

In 2016, Dr Mahathir quit Umno and came out with the former Deputy Prime Minister Tan Sri Muhyiddin Yassin to form Parti Pribumi.

The Pakatan coalition comprises Parti Primbumi, Parti Keadilan Rakyat led by Datuk Seri Anwar Ibrahim’s wife Datin Seri Dr Wan Azizah Wan Ismail, DAP and Parti Amanah Negara. The last comprises a faction that split off from PAS.

Going forth, there will be a period of political crossovers in which each party tries to bolster its majority at the parliamentary and state levels.

The aftershocks of the general election are not over by any means. My preliminary analysis of the published and available data on the elections showed that voter turnout declined by 8.84 percentage points from 84.8% in 2013 to 76% this time around.

Despite this, the total votes cast in the Parliamentary election were 11.93 million, or roughly 671,000 more than 2013. Out of this, Pakatan got 5.24 million or an increase of 1.25 million votes (over the votes cast for PKR and DAP in 2013) to 43.9% of total votes cast.

In essence, Barisan had a swing against it of just under one million votes to 4.24 million or 35.53% of the total votes cast.

In addition to the rejection of the past government on issues that include the 1MDB scandal, three key trends can be discerned from this year’s general election, which was orderly and surprisingly quiet on polling day, since there were few of the usual rumbustious rallies that followed past elections.

The Malaysian electorate has become mature, learning to be cautious and yet bold in voting for change.

First, it was clear that the urban voters swung decisively to the Pakatan coalition. This trend was clear for quite some time, as the urban population increased with the rural-urban drift.

Umno has traditionally depended on the rural vote for its support, but relied on its urban partners, the MCA, MIC and Gerakan to bolster the urban vote.

This time around, the MCA, MIC and Gerakan were almost wiped out at the polls, with the MCA and MIC party leaders losing their seats and Gerakan winning no seats at all.

This meant that the decisive gains were achieved in the more densely populated states in the West coast of Peninsular Malaysia, particularly with stronger majorities in Penang and Selangor, Negri Sembilan and Johor.

The last was the birthplace and stronghold of Umno, but this time round, even the veteran MP for Johor Baru Tan Sri Shahrir Samad lost heavily.

What was pivotal was the voting in Sabah and Sarawak, which together carried 56 Parliamentary seats and were considered safe “deposits” on which Barisan could rely to carry a majority.

In the end, Pakatan and its ally, Warisan took 24 parliament seats.

Secondly, PAS, the Islamic party that focuses largely on religion, dropped a net of three Parliamentary seats, but took back Terengganu, so that it once again controls two states (Kelantan and Terengganu).

It was clear that the breakaway faction Amanah was not able to draw away sufficient hardcore votes to weaken PAS.

The PAS support amounted to 2.01 million or 16.88% of total votes cast, an increase compared with 1.63 million votes or 14.78% in 2013.

What the rise of Pakatan means is that the urban Malay voters had elected for a change of government and improvements in economic livelihood rather than voting along religious affiliations.

The non-Malay vote, on the other hand, were put off by PAS push for hudud laws and were uncomfortable with Umno’s flirting with PAS on areas touching on religion.

Third, what this general election has done is to bring more new faces and talent into the political arena.

One of the weaknesses of multi-party politics is that under conditions of uncertainty, the tendency was to rely on recycled politicians, rather than experiment with younger professionals.

The new government has the opportunity to engage in generational renewal by bringing in younger leaders from more diverse backgrounds into positions of authority on change at all levels.

Time is of the essence, as Dr Mahathir has promised to stay on as Prime Minister for two years, before passing the baton to Anwar who will be 73 by then.

Nothing would signal more the restoration of the rule of law than the immediate release of Anwar from jail.

To safeguard his legacy, Dr Mahathir has now an unique and historic opportunity to address many of the issues that festered when he was Prime Minister for the first time. If the rule of law has weakened, it was partly because of the controversial steps he took to intervene in the legal institutions in the 1980s.

He needs to strengthen the very institutions that protect the rule of law which he now upholds.

On the economic front, he has inherited an economy that has grown by 5.9% last year, but as the saying goes, the GDP numbers look good, but the people feel bad.

With oil prices back up to over US$70 per barrel, and Malaysia as a net energy exporter, the economic winds are favourable for making the necessary tough reforms.

Cutting GST may be popular, but one has to look closely at the fiscal situation more prudently for the long haul.

How to create good jobs in an age of robotics, even as more youth enter the labour force, is a pressing challenge not just for Malaysia, but throughout the developing world.

On the foreign affairs front, Malaysia will have to navigate between the growing tensions between the United States and China.

Given his feisty style, Dr Mahathir has not been known to mince his words about what he thinks about the South China Sea or for that matter, where Malaysia stands as a leading voice in the South.

In her unique way, Malaysia has voted for a generational change, but with the oldest leader managing that transition. Most new governments find very short political honeymoons, as expectations are now high on delivery. It is always easier to oppose than to propose and implement.

How smoothly that transition occurs will have huge impact not only on Malaysians, but the region as a whole.

By Andrew Sheng who writes on global issues from an Asian perspective.


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  Mahathir to be sworn in as PM on May 10 https://youtu.be/zsOkQeJxojk After six decades in power, BN falls to ‘Malaysian
tsuna..

The world’s oldest PM, Dr. Mahathir must now walk the talk

Najib and Mahathir face off in fierce Malaysian election:   https://news.cgtn.com/news/ 3d3d414f33517a4d77457a6333566d 54/share.html ...

Related News:

Old PM heralds hope for new corporate culture

 

MALAYSIA’S poor handling of public finances is a subject matter that has very often lit controversy. It is not only during the Datuk Seri Najib Tun Razak government but stretches back to the days of our new ‘old’ Prime Minister, Tun Dr Mahathir Mohamad.

 

My wishlist to the new government

An efficient and business friendly civil service will help the SME community greatly.

 

Expect unorthodox ideas and measures

TUN Dr Mahathir Mohamad is back in action and with lots more gusto too, at 93.

The world’s oldest PM, Dr. Mahathir must now walk the talk

Najib and Mahathir face off in fierce Malaysian election:
 https://news.cgtn.com/news/3d3d414f33517a4d77457a6333566d54/share.html

https://youtu.be/dbCkQ9347-A

Dr M must now walk the talk

WHEN I attended an election rally of Pakatan Harapan in Wangsa Maju, Kuala Lumpur, two weeks ago, I was delighted to see the Malays, Indians and Chinese clapping hands in unison when PKR’s vice-president Tian Chua promised that the coalition would look after the interests of all, regardless of race, once it came into power.

I was touched by the reactions on the ground. It was a good feeling to be among people who share similar aspirations for racial harmony and welfare for all in this multiracial country.

My son also had the same experience at a Pakatan ceramah in Hulu Kelang, Selangor, last week.

It was drizzling and he was soaked. Then a Malay man gave him a shirt to change. He came home telling me he hoped that Pakatan would win to bring back the long-lost spirit of muhibbah and unity.

The spirit of muhibbah had for a long time turned into a rare commodity because the authorities allowed political opportunists to disrupt peace with their disparaging remarks against other communities and religious groups.

Now that Pakatan has toppled the Barisan Nasional government led by Datuk Seri Najib Tun Razak in the May 9 general election, it is natural for Malaysians like me and my son to expect a better tomorrow where divisive racist politics is curbed, if not eliminated.

I look forward to the return of the good old days when the spirit of muhibbah among races prevailed.

This expectation is not unrealistic, given the emphasis to multiracialism and unity in the speeches of leaders under Pakatan led by Tun Dr Mahathir Mohamad.

The former premier, once disliked by some Chinese for his past racist rule but who appears to have repented, is now the Prime Minister.

But as Dr Mahathir, who has galvanised almost all Opposition forces against Najib for the latter’s association with the 1MDB (1Malaysia Development Bhd) controversy, is likely to play a key part in governing and “saving” the country, his policy speeches made during campaign are in focus now.

While Dr Mahathir has promised to get rid of corruption in government and Felda, he has also pledged to remove the 6% Goods and Services Tax (GST) and reintroduce fuel subsidies – two issues that have impacted the lower-income group negatively.

But if GST is removed and fuel subsidies are reinstated, Dr Mahathir’s government will have to implement measures to ensure that Malaysia’s fiscal position will not be undermined by populist moves.

With the prices of oil and gas returning to a four-year high, the impact on government finance may be cushioned slightly this year. But for the longer term, sustainability is in doubt.

Indeed, international rating agency Moody’s cautioned yesterday that these campaign promises, if implemented without any other adjustments, would be “credit negative for Malaysia’s sovereign”.

A downgrade in sovereign rating will have a negative impact on the ringgit, interest rates and ranking of our bonds.

It may also affect foreign portfolio investments.

But as Dr Mahathir is a deft hand at crisis management, having led the country out of the 1986 recession and 1998 Asian financial and local political crisis, he should have the wits to forestall any fiscal shortfall.

With many businessmen and economists silently supporting Pakatan, there should be no shortage of talent to help him manage the economy.

These skilled people may emerge in the open soon.

What worries businessmen and economists most is the doctor’s pledge that China investments in Malaysia would be reviewed, and terminated if there were unfair terms in current contracts.

But as Selangor and Penang have attracted substantial direct investments from China, PKR’s Datuk Seri Azmin Ali and DAP’s Lim Guan Eng could present an objective and clearer picture of Chinese investments to Dr Mahathir.

While it is difficult to revoke the East Coast Rail Link (ECRL) due to the vast economic benefits it can bring to the country and the favourable terms in loan repayment, it is easier for Malaysia to delay the implementation of the Kuala Lumpur-Singapore high-speed rail project or stop China from getting the contract.

But before doing anything drastic to cut down national debt, government lawyers have a duty to advise the chief commander on paying vast compensation for breach of contract. As China views Malaysia as a strategic location in its ambitious Belt and Road Initiative, Beijing has been following the political developments closely.

But to be sure, Dr Mahathir was a business-friendly leader when he was the Prime Minister, the first time around.

He was responsible for allowing direct trade between Malaysia and China in the late 1980s, which led to China becoming our largest trading partner. Hence, he is not expected to make policies detrimental to the economy.

One question many people are asking now is: will Malaysia become more democratic under Pakatan rule?

From the campaign speeches made by the coalition’s strategists and Dr Mahathir, this appears to be so – at least for the foreseeable future.

Two PKR vice-presidents, Rafizi Ramli and Tian Chua, have told voters that if one day Pakatan becomes corrupt, the people should vote the coalition out – just like how they brought Najib down.

What Pakatan wants to see is a two- or three-party political system where people have a choice to pick the best among the contenders.

Since Malaysians have boldly voted out Barisan that ruled for over six decades, there is no reason why Pakatan cannot be toppled if it is corrupted by power and greed.

In the campaign speeches, Dr Mahathir promised that he would pass the baton to Datuk Seri Anwar Ibrahim, who will be released from jail next month.

Will he keep this promise after assuming the powerful post?

The logical answer is he will. At 93, his health may not permit him to carry on with this high-pressured job.

It will also be politically unwise for him to stay beyond his welcome, as Anwar had ori­ginally been the choice of the coalition before Dr Mahathir came into the picture.

Many have high expectations of Anwar, who has the experience of an acting premier, deputy premier and finance minister before he was sacked from the Cabinet in 1998 by Dr Mahathir.

Having survived bitter political battles and endured imprisonments under Dr Mahathir and Najib from 1998 until now, Anwar should understand the people’s needs better and rule with a multiracial outlook.- by Ho Wah Foon The Star

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The Star Says

By The Star Says

Time to march in unison and purpose

Analysis

By Joceline Tan

New era under world’s oldest PM 

 

Old PM heralds hope for new corporate culture

MALAYSIA’S poor handling of public finances is a subject matter that has very often lit controversy. It is not only during the Datuk Seri Najib Tun Razak government but stretches back to the days of our new ‘old’ Prime Minister, Tun Dr Mahathir Mohamad.

 

'Economy and finance are our main focus' - Nation

 

All eyes on Pakatan financial policies - Business News

 

Possible headwinds from mega project review - Business News 

 

Mahathir's surprise return set to test ringgit traders' resolve - The Star

 

Chinese premier Li Keqiang congratulates Dr M on win

 

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https://youtu.be/dbCkQ9347-A

Dr M must now walk the talk

WHEN I attended an election rally of Pakatan Harapan in Wangsa Maju, Kuala Lumpur, two weeks ago, I was delighted to see the Malays, Indians and Chinese clapping hands in unison when PKR’s vice-president Tian Chua promised that the coalition would look after the interests of all, regardless of race, once it came into power.

I was touched by the reactions on the ground. It was a good feeling to be among people who share similar aspirations for racial harmony and welfare for all in this multiracial country.

My son also had the same experience at a Pakatan ceramah in Hulu Kelang, Selangor, last week.

It was drizzling and he was soaked. Then a Malay man gave him a shirt to change. He came home telling me he hoped that Pakatan would win to bring back the long-lost spirit of muhibbah and unity.

The spirit of muhibbah had for a long time turned into a rare commodity because the authorities allowed political opportunists to disrupt peace with their disparaging remarks against other communities and religious groups.

Now that Pakatan has toppled the Barisan Nasional government led by Datuk Seri Najib Tun Razak in the May 9 general election, it is natural for Malaysians like me and my son to expect a better tomorrow where divisive racist politics is curbed, if not eliminated.

I look forward to the return of the good old days when the spirit of muhibbah among races prevailed.

This expectation is not unrealistic, given the emphasis to multiracialism and unity in the speeches of leaders under Pakatan led by Tun Dr Mahathir Mohamad.

The former premier, once disliked by some Chinese for his past racist rule but who appears to have repented, is now the Prime Minister.

But as Dr Mahathir, who has galvanised almost all Opposition forces against Najib for the latter’s association with the 1MDB (1Malaysia Development Bhd) controversy, is likely to play a key part in governing and “saving” the country, his policy speeches made during campaign are in focus now.

While Dr Mahathir has promised to get rid of corruption in government and Felda, he has also pledged to remove the 6% Goods and Services Tax (GST) and reintroduce fuel subsidies – two issues that have impacted the lower-income group negatively.

But if GST is removed and fuel subsidies are reinstated, Dr Mahathir’s government will have to implement measures to ensure that Malaysia’s fiscal position will not be undermined by populist moves.

With the prices of oil and gas returning to a four-year high, the impact on government finance may be cushioned slightly this year. But for the longer term, sustainability is in doubt.

Indeed, international rating agency Moody’s cautioned yesterday that these campaign promises, if implemented without any other adjustments, would be “credit negative for Malaysia’s sovereign”.

A downgrade in sovereign rating will have a negative impact on the ringgit, interest rates and ranking of our bonds.

It may also affect foreign portfolio investments.

But as Dr Mahathir is a deft hand at crisis management, having led the country out of the 1986 recession and 1998 Asian financial and local political crisis, he should have the wits to forestall any fiscal shortfall.

With many businessmen and economists silently supporting Pakatan, there should be no shortage of talent to help him manage the economy.

These skilled people may emerge in the open soon.

What worries businessmen and economists most is the doctor’s pledge that China investments in Malaysia would be reviewed, and terminated if there were unfair terms in current contracts.

But as Selangor and Penang have attracted substantial direct investments from China, PKR’s Datuk Seri Azmin Ali and DAP’s Lim Guan Eng could present an objective and clearer picture of Chinese investments to Dr Mahathir.

While it is difficult to revoke the East Coast Rail Link (ECRL) due to the vast economic benefits it can bring to the country and the favourable terms in loan repayment, it is easier for Malaysia to delay the implementation of the Kuala Lumpur-Singapore high-speed rail project or stop China from getting the contract.

But before doing anything drastic to cut down national debt, government lawyers have a duty to advise the chief commander on paying vast compensation for breach of contract. As China views Malaysia as a strategic location in its ambitious Belt and Road Initiative, Beijing has been following the political developments closely.

But to be sure, Dr Mahathir was a business-friendly leader when he was the Prime Minister, the first time around.

He was responsible for allowing direct trade between Malaysia and China in the late 1980s, which led to China becoming our largest trading partner. Hence, he is not expected to make policies detrimental to the economy.

One question many people are asking now is: will Malaysia become more democratic under Pakatan rule?

From the campaign speeches made by the coalition’s strategists and Dr Mahathir, this appears to be so – at least for the foreseeable future.

Two PKR vice-presidents, Rafizi Ramli and Tian Chua, have told voters that if one day Pakatan becomes corrupt, the people should vote the coalition out – just like how they brought Najib down.

What Pakatan wants to see is a two- or three-party political system where people have a choice to pick the best among the contenders.

Since Malaysians have boldly voted out Barisan that ruled for over six decades, there is no reason why Pakatan cannot be toppled if it is corrupted by power and greed.

In the campaign speeches, Dr Mahathir promised that he would pass the baton to Datuk Seri Anwar Ibrahim, who will be released from jail next month.

Will he keep this promise after assuming the powerful post?

The logical answer is he will. At 93, his health may not permit him to carry on with this high-pressured job.

It will also be politically unwise for him to stay beyond his welcome, as Anwar had ori­ginally been the choice of the coalition before Dr Mahathir came into the picture.

Many have high expectations of Anwar, who has the experience of an acting premier, deputy premier and finance minister before he was sacked from the Cabinet in 1998 by Dr Mahathir.

Having survived bitter political battles and endured imprisonments under Dr Mahathir and Najib from 1998 until now, Anwar should understand the people’s needs better and rule with a multiracial outlook.- by Ho Wah Foon The Star

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After six decades in power, BN falls to ‘Malaysian tsunami’–

May 9, 2018. This is the day Malaysians experienced the power of the ballot.

Anger towards the current administration had brought them out in large numbers to cast their votes in the historic 14th general election.

Few Malaysians would have thought they would live to see this day – the defeat of the formidable UMNO-led BN/Alliance which had held unbroken power for 61 years.

This is the first time the country has witnessed a change of government since independence from the British in 1957.

Malaysia is probably the only country in the world, apart from a handful of communist states, to have not undergone a regime change.

Pakatan Harapan’s victory is even more remarkable because of the gerrymandering, the numerous attempts by the Election Commission to frustrate the opposition campaign, and the holding of the election in the middle of the week, which most likely resulted in a lower voter turnout.

The rout of BN was made possible by a Malaysian tsunami – a tide which comprised not just the major ethnic groups in the peninsula – Malays, Chinese and Indians – but also those in Sabah and Sarawak.

At the end of the day, the redelineation, which BN pushed through weeks before the election, backfired.

Voters, frustrated with various issues, made a beeline at polling stations nationwide to reverse the efforts by BN and its functionaries to steal this election.

More importantly, this election witnessed a swing among the Malays in favour of the opposition despite the scare-mongering and race-baiting.

With this, Malaysia has taken the first step of becoming a normal country.

A normal country in which two or more coalitions would vie for power. A normal country where power now resided with the people, and not politicians. A normal country in which race and religion would not be an unalloyed obsession.

Now the hard work begins. No one should be under the illusion that a new government would be able to reverse the rot that had taken root for decades.

For a country that is so divided, it would take time to heal the wounds, and for Malaysians to rebuild the trust for one another and for the many institutions that have failed them.

Credit must also be given to those in BN such as UMNO Youth Chief Khairy Jamaluddin, UMNO Treasurer-General Salleh Said Keruak and BN Strategic Communications Department Director Abdul Rahman Dahlan who were gracious in accepting defeat, emphasising that the voice of the people was paramount.

Similarly, supporters of Harapan must also be gracious in victory.

May 9, 2018, is also a reminder to all politicians not to take the people for granted. It is a reminder that it is the rakyat who are their masters, and the politicians have been elected to serve, and not lord over them. It would be wise for the incoming government to remember this.

Congratulations, Malaysia. At last, power to the people!

Source: Malaysiakini EDITORIAL

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