Tuesday, January 03, 2023

United we stand



The Star:

United we stand





By WONG CHUN WAI
ON THE BEAT


Sunday, 01 Jan 2023




And we know exactly what happens if we’re divided.

IF 2022 was an extraordinary year, in which Malaysia ended up with a hung government after the general election, followed by the formation of a Unity Government, then we can expect 2023 to be an equally fast-paced one.


The real test for our new Prime Minister and his Cabinet members will finally begin. The 100 days will be over soon, and Malaysians will be especially critical by the time that period ends.

There is sufficient time to learn the ropes at their respective ministries, so they will come under greater scrutiny then, and rightly so, too.

The most important matter will be on Feb 23 when Datuk Seri Anwar Ibrahim is scheduled to present the 2023 Budget.

The three-week Dewan Rakyat meeting, starting Feb 13, will be allocated entirely for the process of presenting the Budget since previously only a mini budget was tabled.

It will be an important speech because we expect strong financial headwinds this year, but with China reopening its borders, we also hope that its trading with the world will resume since consumer confidence remains strong.

The news, for the moment, concerns Chinese visitors bringing their Covid-19 problems to our shores, but what is not highlighted is that the republic’s logistics systems will now pick up steam again.

Many of us recall watching Anwar presenting his Budget speech as finance minister 30 years ago under the Mahathir administration. It was a four-hour long affair, and it was the longest on record.

Flowery, ostentatious and uncommon Bahasa Malaysia words were used, which gave the media a massive headache, as pressmen tried to make sense of it. I know because I covered it as a Parliament reporter.

With due respect, Datuk Seri, please keep your upcoming Budget speech short and precise. Use simple Bahasa Malaysia words.

Some references to religion and literature will be tolerated, though unnecessary. It won’t help us economically, so get to the point.

In Britain, the Chancellor’s speech is only about 15 minutes, so we surely don’t need a marathon session to get points across.

A challenge for the government would be to raise revenue, including via tax collection. While the Goods and Services Tax (GST) remains the most effective approach, we can be sure that it won’t surface for a while at least.

A weak government made up of different political parties would not easily facilitate talk of GST, which is unfortunate because the GST has the best net spread in collecting consumption taxes.

Given the lack of political goodwill, we shouldn’t be surprised if pressure is continually applied on high imports and excise duties on liquor, cigarettes and gambling. Ultimately, it shouldn’t be too prohibitive, though.

Let’s be honest, PAS state governments shutting down legitimate gaming operators may make the party look good to its supporters, but it will only benefit the illegal bookies.

Each year, the government loses about RM2bil in taxes due to illegal gambling. It’s ironic because the criminals and corrupt enforcement officers escape richer while tax-paying gaming companies, number forecast operators (NFOs) and breweries end up paying the price even though they contributed RM1.86bil in income taxes in the last two financial years.

There’s no need for more draws but let NFOs conduct online gaming. It will help generate more tax revenue without increasing the frequency of draws.

Right now, the illegal establishments even accept bets via WhatsApp, while NFOs can’t, which makes little sense.

In the case of breweries, there’s an estimated tax revenue loss of RM1bil a year because of illicit alcohol, caused mainly by smuggling at the borders, especially between Sarawak, Kalimantan and Brunei. Likewise, the Thai border.

Common sense and practicality are needed in dealing with these issues, but unfortunately, our politicians prefer to take the easy way out.

Even if PAS comes to power and imposes a Taliban-style regime, gambling, drinking and even prostitution will still exist. If not, consumers will just cross over to Thailand, like they do in Kelantan.

We surely can’t afford to keep giving special allowances to our civil servants and pensioners.

Previous Barisan Nasional government leaders assumed the civil service was a fixed asset and continuous bonuses were offered believing that civil servants would remain loyal to Umno, in particular.

But civil servants have their dignity and pride. The Putrajaya parliamentary constituency was ceded to Perikatan Nasional in the recent general election.

If Malaysia wants to compete on the global stage and attract multinational companies to Malaysia, it shouldn’t be overly concerned by putting qualified non-Malays in government-linked corporations. We’re at a point where Malays are already qualified and confident enough.

As China and India become more important, we should tap Malaysian assets with our traditional links to these two countries. Malaysia has an advantage that other Asean countries don’t, Singapore apart, of course.

Malaysia can’t continue with the old ways of doing things. This is 2023. The world has become more diverse with multi-ethnicity regarded as a source of pride and an asset.

Even a conservative society like Saudi Arabia has changed. It was unimaginable before, but some degree of liberalism has permeated its society now.

Malaysians want Anwar to succeed and stay on because we simply can’t afford another change of PM. It would be disastrous otherwise.

He has succeeded in becoming the first PM from a multi-racial party and is now the head of a Unity Government comprising different coalitions.

It’s truly a remarkable achievement. The jury was out on him becoming PM, but he has, and now he only needs to leave a legacy behind. He just needs to do what is right for Malaysia because he has nothing to lose at his age.

There will be bumps in 2023 because six months from now, state elections will be held in Kelantan, Terengganu, Penang, Kedah, Selangor and Negri Sembilan.

The relationship of the partners in the Unity Government will be tested as they could compete against each other, and Perikatan may end up the beneficiary again. Meanwhile, the party polls in Umno will also have an impact on the Unity Government if there’s a leadership change.

It’s a double-edged sword because if the status quo remains, it will make renewal and revitalisation in Umno difficult.

But there are bigger things than politics in 2023. We have already wasted too much time on it, so let’s roll up our sleeves and do the real work instead.

Malaysia needs to be back on the world stage for the right reasons, and it feels like there’s plenty of goodwill now towards our nation. So let’s not throw it away.

Wishing all Malaysians a Happy New Year and may 2023 be a good and productive one for all of us, especially in uniting Malaysians.


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