Scrapping pension to avoid bankruptcy...(updated)

Paying the price for 60 years 

of corruption & racist policies...

Malaysia is in financial deep shit, but most of its 33 million populations especially the largest ethnic group – Malay – doesn’t realize it. The fact that 80% of the Malay voters chose Perikatan Nasional, a coalition comprising Malay nationalist Bersatu and PAS Islamist parties that subscribe to radicalization and extremism, speaks volumes about the ignorance of the country’s problems.

Look no further than the depreciation of Malaysian Ringgit against not only the U.S. dollar, but also against neighbouring Singapore and even the Philippines and Thailand currencies in the region. The local currency is trading dangerously at RM4.78 against the greenback, and hit a fresh historical low of 3.5518 against the Singapore dollar about a week ago.

It doesn’t matter whether MIDF Research incorrectly projected that the Ringgit will reach RM4.00 against the U.S. dollar by end 2023. It also doesn’t matter whether the central bank – Bank Negara Malaysia – insisted that the weakness in the local currency “does not reflect economic fundamentals”. And it certainly doesn’t matter whether PM Anwar Ibrahim blames external factors or not.

The more half-past-six analysts and authorities give lame excuses in denial, the more foreign investors will avoid the country like a plague. It’s both amazing and laughable they still think that investors were stupid. Even if Anwar has the political will to reform the ailing country, which he does not, it was too late as the country is plunged into a mountain of RM1.5 trillion national debts.

When the ruling party Barisan Nasional was finally ousted from power in the May 2018 General Election after having ruled for 61 years since independence in 1957, the national coffers were already running dry due to massive corruption. Ironically, Mahathir Mohamad, the “Father of Corruption” who had ruled for 22 years (1981-2003) discovered that Malaysia had raked RM1 trillion when he became premier again in 2018.

But Mahathir would rather hand over the power to his trusted lieutenant Muhyiddin Yassin than to Anwar Ibrahim as promised, leading to the clueless and incompetent backdoor government of Muhyiddin (and subsequently “turtle egg” Ismail Sabri) plundering even more national treasures. By the time Anwar was installed as the 10th Prime Minister, the national debts had ballooned to RM1.5 trillion from RM1 trillion.

Malaysia Pensioner

The sudden jump in debt was largely due to the corruption and money laundering in the RM600 billion Covid scandal during Muhyiddin’s short 17-month regime, where the country was locked down under the pretext of fighting Covid and the Parliament was shut down to prevent expenditure from being scrutinized. It was a dark age of incompetence, corruption, policy flip-flops, Coronavirus mishandling and economic mismanagement.

Even though ex-Prime Minister Najib Razak had been toppled and jailed, the crook has done so much damage that not only the country had accumulated RM1 trillion in debt, but his 1MDB scandal saw US$4.5 billion stolen and the Malaysian government has to assume US$7.8 billion (RM37 billion) in outstanding debts – including 30-year bonds due in 2039.

Yet, in what appeared to be elites protecting crooks, the previous King Sultan Abdullah of Pahang had awarded Najib with a 50% discount of his original 12-year jail term and slashed his fine of RM210 million by 75%. The despicable royal pardon, which PM Anwar cowardly and shamelessly defended as fair, has spooked investors, leading to the Ringgit dumping.

If you think Malaysia isn’t on the right track to bankruptcy, think again. Adding fuel to the bankruptcy factors is the pension scheme, which is a sensitive issue where the majority of the country’s 1.7 million civil servants are Malay. While 71% of pensioners currently are Malay, 13% are Chinese and 7.8% Indians. The fact that Anwar government is even discussing it is the clearest proof that the country is in a dire state.

The country has one of the most bloated civil services in the world – one out of every 19 Malaysians is a civil servant. That’s 3 times more than Singapore in terms of the civil servants ratio to the population. Crucially, pension payouts have spiked in the last 15 years and are projected to grow. Pension payments amounted to RM11.5 billion in 2010, but nearly tripled to RM31 billion last year.

In 2040, the government would have to spend a jaw-dropping RM120 billion on pension alone. In the Budget 2024, the government spending on emoluments – wages for civil servants – would be a staggering RM95.64 billion, representing 24.29% of total budget of RM394 billion. It is the largest expenses. The combined expenditure of wages and pension would be a whopping RM128 billion – 32.5% of the total budget.

Najib Razak in Prison

Infamous for inefficiency, incompetence, unproductive and arrogance, the huge pool of government servants contribute to another problem. In 2010, Cuepacs president Omar Osman revealed that a total of 418,200 or 41% of the total number of civil servants in the country was suspected of being involved in corruption. Yet, the government continues to reward them with cash to appease the vote bank.

Yes, the whole purpose of the hiring civil servants, even though they were not needed, was to guarantee the survival of the previous Barisan Nasional ruling government. The civil service workforce has increased from 1.24 million in 2010 to current 1.7 million, leading to 590,000 retirees in 2010, before jumping to 853,000 in 2020 and is projected to skyrocket to 936,000 this year.

From the beginning, the ethnic Malays have been brainwashed and tricked that only the United Malays National Organization (UMNO), of which Mahathir had ruled one-third of the 60 years since the independence, could protect them from “non-existence” threat of non-Malays. It was part of “Ketuanan Melayu”, an ideology of Malay supremacy espoused by UMNO to cling to power.

Of course, it was nothing but a scam to enrich Malay elites like Mahathir, Najib, Muhyiddin, Sabri and their cronies and families. The same racist and discrimination policy that gave birth to NEP (New Economic Policy) and Vision 2020, which were never meant to be achieved, was also responsible for brain drain in the form of hundreds of thousands of technical skills went through a large scale migration to other countries.

To prove that the Malay nationalist party was the protector of the Malays, the government had to employ unemployable Malay graduates, who were produced at industrial scale by rigging the education system. For example, at least 90,000 of the 373,974 candidates who sat for the Sijil Pelajaran Malaysia (SPM) examination in 2022 – equivalent to “O” Level – had failed the Mathematics paper.

According to some teachers who used to mark SPM exam papers, the passing score could be as low as 20%, especially for subjects like Mathematics and Science in order to make students of certain ethnic happy. Even then, some 30,000 candidates who were registered did not sit for the SPM. It’s not surprising that the system produces unemployable graduates, and graduates with poor command in English.

Malaysia - Bloated Civil Service

To paint a picture of Malay dominance in civil service, and to discourage non-Malay from the sector, the government prioritizes Malays in terms of recognition and promotion. The racial discrimination has become so bad that the Chinese community made up less than 2% of the government service employees today. It’s not entirely true that Chinese despise civil servants due to lower salary.

True, the civil service’s pay was considered low compared to the private sector. However, government employees enjoy pension, which entitles spouses and children under the age of 21 to benefits should a civil servant on the scheme die while in service. In actuality, civil servants currently have a choice between the pension scheme and the EPF (Employers Provident Fund ).

Introduced in 1951, the EPF compulsory retirement savings scheme for private sector workers requires employees to contribute 11% of their salaries to their EPF accounts. Employers, on the other hand, contribute the equivalent of 13% of the salaries of employees earning RM5,000 and below, and 12% if wages are above RM5,000. Workers may fully withdraw from the EPF from the age of 55.

For obvious reason, the pension option is more attractive and lucrative, especially when the life expectancy of Malaysians has increased from an average of 71.2 years in 1991 to 74.8 years in 2023. Unlike the private sector, civil servants do not need to chip in to the pension fund as the government contributes 5% while statutory bodies, local authorities and agencies contribute 17.5% to KWAP monthly.

The KWAP (Retirement Fund Inc.) is the same pension fund which ex-PM Najib and his partner-in-crime Jho Low had stolen from when Najib abused his power as finance minister to instruct KWAP to loan RM4 billion to SRC International Sdn Bhd (a subsidiary of 1MDB). After the loan was disbursed in 2011 and 2012, the money was siphoned out to Switzerland instead.

To add salt to injury, the KWAP has been badly managed. Its gross investment income in 2021 was merely RM6.33 billion – insufficient to pay the total pensions and gratuities that year which amounted to RM29.1 billion. Meaning taxpayers, including those working in the private sector, were subsidizing the pensioners. And some extremist would-be Malay pensioners have the cheek to mock Chinese taxpayers as second-class citizens.

Pension or EPF???

There’s a catch though. Civil servants need to serve at least 10 years to qualify for the pension, upon which they would get a pension of 20% of their last-drawn salary. The lowest monthly pension amount for at least 25 years’ service is RM1,000, while the highest amount is 60% of last-drawn salary for civil servants who have served for 30 years. The best part is the pension scheme also provides a gratuity payment.

The government is trapped in a Catch-22 situation as the old game to buy Malay votes through discrimination government jobs has come back to haunt it. It can’t abolish the pension schemes without increasing salaries substantially to entice civil servants to choose EPF as their retirement fund. However, by doing so, the government will be burning a bigger hole in the RM1.5 trillion debts as it needs to borrow more to finance its budget.

On the other hand, if it does not start trimming the bloated civil service, the explosive combined expenditure of pension and wages will continue to climb till the government eventually goes bust. It didn’t help that the salary schemes of civil servants have been revised on several occasions to pacify the critical Malay voters as inflation and cost of living hit the roof.

The government can start by halting new recruitment. However, the community that has been indoctrinated with the belief that the civil service was their birthright would find it tough to seek employment in the competitive private sector after decades of pampering them with a deplorable education system, leaving them to require a lifelong crutches to get by.

Regardless whether the government will choose to borrow more or to impose higher taxes to fund the pension scheme, a time bomb which it built in the first place, investors were not optimistic that the government could defuse the problem. After all, Anwar Ibrahim admits that since the time when he was the deputy prime minister in the 1990s, the government has chosen to kick the can down the road over the issue of pensions. -  FT

Polemik saiz penjawat awam Malaysia yang besar sudah lama dibincangkan dengan yang selalu disebut di luar adalah Malaysia mempunyai penjawat awam yang paling ramai berbanding dengan negara-negara lain. Pandangan Rafizi Ramli tentang isu saiz penjawat awam Malaysia…

Persoalan mengenai beras Madani...

Kalau Syed Abu Hussin Hafiz Syed Abdul Fasal bagi kenyataan dengan tepat, media massa lapor dengan tepat dan saya faham kandungannya dengan tepat, maka cerita beras Madani ini adalah seperti berikut: 

a. Sekarang ini ada dua jenis beras di pasaran. Satu beras putih tempatan. Satu lagi beras putih import. 

b. Berkuatkuasa 19 Februari ini, akan ada satu jenis saja yang dijenamakan Beras Putih Malaysia Madani. 

c. Harga siling beras Madani ini adalah RM30 bagi beg 10 kilogram (kg). Ertinya satu kg RM3. Bagi pek lima kg, harganya RM15.50 atau RM3.10 satu kg. Pek satu kg pula berharga RM3.50. 

d. Ertinya, harga siling paling rendah RM3 sekilogram dan paling tinggi RM3.50. 

e. Sebelum ini, harga kawalan maksimum beras super special lima peratus (SSTS) adalah RM2.60. 

Syed Abu Hussin Hafiz ini adalah Pengerusi Pasukan Bertindak (Kluster Makanan), Majlis Tindakan Kos Sara Hidup (NACCOL). Jadi, sekiranya kefahaman dan congak saya berasaskan fakta-fakta di atas betul maka harga kawalan maksimum akan naik daripada RM2.60 bagi beras super special kepada RM3.50 bagi beras Madani atau perbezaan 90 sen. Maksudnya, harga Beras Putih Malaysia Madani ini lebih mahal daripada harga beras yang berkuatkuasa sejak 18 tahun lalu. 

Syed Abu Hussin dipetik sebagai berkata: "Ketetapan ini dibuat selepas mengambil kira tiada kenaikan harga beras putih selama 18 tahun dengan perkara ini sudah dibentang dan dipersetujui Perdana Menteri, Datuk Seri Anwar Ibrahim." Beras dengan jenama Madani ini dijangka berada di pasaran mulai 1 Mac. Natijahnya, atas dalih hendak hapuskan manipulasi pasaran dan memotivasikan pesawah serta industri beras maka pengguna kena bayar harga siling 90 sen lebih tinggi. Akhir kalam, sekiranya kefahaman dan interpretasi saya tidak tepat, silalah jawab. Saya sentiasa mengamalkan hak menjawab (right of reply). - A.Kadir Jasin

Kartel mula marah pasai 

tatak untung busaq...

Kerajaan Madani usahakan beras putih pada harga yang berpatutan, mereka bukan sokong bahkan boleh pula kata tak perlu. Mereka lebih nakkan 𝗸𝗲𝗿𝘁𝗮𝘀 𝗽𝘂𝘁𝗶𝗵 pula. Apa dia ingat rakyat makan kertas? Dia nak buat isu kekurangan beras tempatan. Padahal 𝗱𝗮𝗵 𝗯𝗲𝗿𝗽𝘂𝗹𝘂𝗵 𝗸𝗮𝗹𝗶, kalau bukan beratus kali dijelaskan yang sejak sekian lama beras tempatan 𝘁𝗮𝗸 𝗽𝗲𝗿𝗻𝗮𝗵 𝗰𝘂𝗸𝘂𝗽 kerana 𝗽𝗲𝗻𝗴𝗲𝗹𝘂𝗮𝗿𝗮𝗻 𝘆𝗮𝗻𝗴 𝗿𝗲𝗻𝗱𝗮𝗵.

Pengeluaran rendah ni pula disebabkan oleh beberapa faktor. Antaranya ialah 𝗵𝗮𝗿𝗴𝗮 𝘀𝗶𝗹𝗶𝗻𝗴 jualan, 𝗵𝗮𝗿𝗴𝗮 𝗹𝗮𝗻𝘁𝗮𝗶 belian serta 𝗸𝘂𝗿𝗮𝗻𝗴 𝗽𝗲𝗿𝗺𝗶𝗻𝘁𝗮𝗮𝗻 dalam pasaran kerana rakyat kita lebih suka beras import. Disebabkan permintaan rendahlah maka banyak tanah tanaman padi 𝗱𝗶𝘁𝘂𝗸𝗮𝗿 𝘀𝘁𝗮𝘁𝘂𝘀𝗻𝘆𝗮 𝗺𝗲𝗻𝗷𝗮𝗱𝗶 𝗸𝗮𝘄𝗮𝘀𝗮𝗻 𝗸𝗼𝗺𝗲𝗿𝘀𝗶𝗹 dan 𝗽𝗲𝗿𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝗶𝗮𝗻 seperti yang diakui oleh 𝗞𝗔𝗗𝗔 sendiri.

Selain masalah itu, terdapat 𝗸𝗲𝗴𝗶𝗮𝘁𝗮𝗻 𝗽𝗲𝗻𝗶𝗽𝘂𝗮𝗻 oleh 𝗸𝗮𝗿𝘁𝗲𝗹 𝗯𝗲𝗿𝗮𝘀 di mana beras tempatan dicampurkan dengan beras import dan kemudiannya 𝗱𝗶𝗷𝘂𝗮𝗹 𝗽𝗮𝗱𝗮 𝗵𝗮𝗿𝗴𝗮 𝗯𝗲𝗿𝗮𝘀 𝗶𝗺𝗽𝗼𝗿𝘁. Ini semua 𝘰𝘱𝘦𝘯 𝘴𝘦𝘤𝘳𝘦𝘵. Pat Mat jual tempe pun tahu. Macamana pemimpin utama PAS boleh tak tahu? Apa yang kerajaan buat sekarang adalah jalan tengah yang sangat berkesan. Dengan kaedah begini, 𝗿𝗮𝗸𝘆𝗮𝘁 𝗱𝗮𝗽𝗮𝘁 𝗯𝗲𝗿𝗮𝘀 𝗺𝘂𝗿𝗮𝗵 manakala 𝗸𝗮𝗿𝘁𝗲𝗹 𝘁𝗮𝗸 𝗱𝗮𝗽𝗮𝘁 𝗰𝗮𝗿𝗶 𝘂𝗻𝘁𝘂𝗻𝗴 𝗹𝗲𝗯𝗶𝗵 dengan cara menipu rakyat.

Tapi tetap harga beras naik. Kalau sebelum ni beras tempatan 10kg baru RM26.50. Sekarang naik jadi RM30. Kenaikan sebanyak RM3.50. Ya betul. Tapi RM3.50 tu untuk 10kg. Siapa dia yang makan sehari 10kg beras? Kalau kata sehari satu kg pun, kenaikan itu cuma 35 sen sehari. Itu pun kalau melantak satu kg beras sehari.

Lagi satu, beras harga RM26.50 tu pun payah nak jumpa dalam pasaran 𝗱𝗶𝘀𝗲𝗯𝗮𝗯𝗸𝗮𝗻 𝗼𝗹𝗲𝗵 𝗽𝗲𝗿𝗺𝗮𝗶𝗻𝗮𝗻 𝗸𝗮𝗿𝘁𝗲𝗹. Sudahnya rakyat kena beli beras import yang mahal juga. Jadi 𝘽𝙚𝙧𝙖𝙨 𝙈𝙖𝙙𝙖𝙣𝙞 membolehkan rakyat dapat beli beras pada harga yang paling berpatutan. Bagi aku senang je. 𝗕𝗶𝗹𝗮 𝗸𝗮𝗿𝘁𝗲𝗹 𝗺𝗮𝗿𝗮𝗵, 𝗯𝗲𝗿𝗺𝗮𝗸𝗻𝗮 𝗶𝗮 𝘁𝗶𝗻𝗱𝗮𝗸𝗮𝗻 𝘆𝗮𝗻𝗴 𝗯𝗲𝘁𝘂𝗹 𝗼𝗹𝗲𝗵 𝗸𝗲𝗿𝗮𝗷𝗮𝗮𝗻 𝗱𝗮𝗻 𝗯𝗮𝗶𝗸 𝘂𝗻𝘁𝘂𝗸 𝗿𝗮𝗸𝘆𝗮𝘁. Mungkin bagi PAS lebih penting jaga kebajikan kartel yang kaya raya daripada permudahkan hidup rakyat. Sebab tu dia marah.

Apa yang jelas, 𝗞𝗲𝗿𝗮𝗷𝗮𝗮𝗻 𝗠𝗮𝗱𝗮𝗻𝗶 dah terbukti 𝗰𝗮𝗸𝗻𝗮 𝗿𝗮𝗸𝘆𝗮𝘁. Perkara sebaik ni jangan haraplah akan berlaku ketika PAS dan PN memerintah. Kalau tak, takkanlah banyak kes bunuh diri dan kibar bendera putih masa zaman PN dulu.  - Raja Gelap II 

In memoriam of Steady-Aku 

- A noble wordsmith from Melbourne...

In the quiet corridors of the digital realm, where words held sway over hearts and minds, it is with heavy hearts we bid farewell to a luminary of the written word. Under the stark heading of إِنَّا لِلَّهِ وَإِنَّا إلَيْهِ رَاجِعُوْنَ, we find solace in knowing that Hussein bin Abdul Hamid, the esteemed SteadyAku47 blogger, has returned to Rahmatullah.

The news of his collapse at Avenue K Mall on 7th February 2024 and subsequent hospitalisation left a void in the hearts of many. In the poetic dance of life, Hussein Abdul Hamid gracefully concluded his earthly narrative on Thursday, 5th Shaaban 1445/15th February 2024 at 4.41am. As the dawn unfolded, we reflect on his impactful journey.

Hussein's moniker, Steady-Aku, echoed across the digital landscape, a testament to a blogger who fearlessly navigated the tumultuous seas of political discourse from his Melbourne desk. Born in 1947, he embarked on a timeless journey, leaving behind a legacy of words that stirred hearts, sparked contemplation, and occasionally left us in delightful bewilderment.

His return to Malaysia last year after decades in Australia marked a poignant chapter, perhaps a testament to his sustenance and intention to rest in the embrace of his homeland. As an avid reader of his blog, the realisation that Steady- Aku will cease to write leaves a void in the realm of thought-provoking narratives.

His last note...

In the tapestry of his blog, Hussein shared, “I started writing about what I saw happening around me. That is how STEADYAKU came about. Come, read what I write. Agree to disagree if you must. Share your thoughts with me.” Today, we reflect on the unity and kinship he yearned for in Malaysia, as he envisioned a nation embracing diversity.

Hussein, an archetype of an MCKK boy C64, wore the mantle of an agitator with a heart both kind and scarred. His blog posts, a tempest of opinions, resonated with the ascension of a batchmate from the Class of '64 to Malaysia's top leadership, embodying a melodic dance with the passage of time.

On his final post on February 6, 2024, Hussein reflected on the evolving skyline of Kuala Lumpur and the mosaic of cultures defining the city. Amidst political complexities, he found solace in the power held by "we the people" to shape destiny, leaving us with contemplative musings.

As we bid our esteemed storyteller farewell, we honour Steady-Aku not just as a blogger but as a craftsman of tales etched into the digital canvas. His brilliance, like a well-aimed arrow, pierced through the noise of discourse. In the corridors of contemplation, his legacy echoes—a resonant digital legacy that lingers in our hearts.

Rest peacefully, dear brother MCOB. Your return home leaves behind a void, yet your narratives endure. Here's to the storyteller who dared to weave tales that linger, and to a soul that has embarked on a new journey. May Allah forgive him, raise his rank in the Mahdi, and illuminate his grave. O Allah, forgive us and him, expand his resting place, and grant comfort to those he leaves behind. Al Fatihah. - Kamsiah Haider

Farewell SteadyAku47 

Hussein Abdul Hamid...

Earlier today, both of us received the news that Hussein Hamid had passed away at the Kuala Lumpur General Hospital. Last week, Hussein collapsed inside a mall after suffering a stroke, which left him in a coma. He passed away peacefully without regaining consciousness.

Hussein was controversial but consistent. He exposed issues that no one else was willing to touch and challenged many of Malaysia’s top elite. We were lucky enough to regularly talk with him, and understand the changes in stand he took - in the past and lately. This resulted in Hussein being able to return to Malaysia after years in exile. We take some solace that he died in his own country. Hussein never took Australian citizenship, even though he was eligible.

Both of us had different but at the same time similar relationships with Hussein. I (Murray) spoke regularly to Hussein and we shared perspectives on issues, often jointly deciding on the approach that should be taken. I know from these discussions, Hussien had a strong moral compass, that always asked the question ‘will the Rakyat knowing this be for the betterment of Malaysia?’ We shared links and documents, and even gave each other contacts, that many in Malaysia will know.

Most of all, we spiritually supported each other. There were times when Hussein felt depressed about issues in Malaysia and I picked him up. This was reciprocated with the issues I have personally faced over the last couple of years.

I (Teck Ghee) had a relationship that was much more upfront and personal. Hussein spent most of his last weeks staying with me in my apartment and we discussed a number of issues regarding his life direction as well as did work together on plans that we intended to pursue to advance the causes that we believed in. Hussein was a fellow activist blogger that I featured in my CPI website from a long time ago. His recent work has also refocused my thinking and influenced the last batch of articles that I have written when he was staying at my home.

As we mourn the passing of our dear friend, Hussein we remember and cherish our time with him, indelibly etched in our hearts and minds. This piece is written not solely to lament the loss of Hussein. It is also to pay tribute to someone who was a true comrade sharing a mutual journey in trying to make Malaysia a better place.

For Malayia and Malaysians, Hussein’s voice will be sadly missed. Hussein was fiercely independent, free thinking, and unafraid. He wrote perhaps some of the most biting and critical commentaries on the country, our people and foes and friends that has emerged from the social media world of bloggers.

Simplicity, grace and a certain child-like quality of innocence combined with refined knowledge marked his prose. Few if any of the nation's community of political and social bloggers come close to his consistency and steadfastness in support of an inclusive and progressive country.

We can remember and pay tribute to him best by reading and rereading his writing. You will see most of his writings, especially the pieces he wrote through the Melbourne nights, came from his heart.We must all be inspired to continue his journey. -  Murray Hunter & Teck Ghee. 

cheers.