10 conspicuous absences in the budget

By P. Gunasegaram

Tiger is always suspicious when some things are conspicuous by their absence. If the wild boar suddenly disappears from Tiger’s hunting grounds, perhaps the humans are encroaching into our space which means time to move further in. Such was the case with the recent Budget when obvious measures were absent. Here’s 10 Tiger would have liked.

Ah yes, Tiger really can’t argue with the budget as a policy document – widen the tax base through a goods and services tax, lowering income tax, increasing real property gains tax to deflate bubbles…..and so on.

But where, oh where, were the measures to cut wastage and, yes, corruption? Where was the sequencing of mega projects? So Tiger turns budget planner and fills up the obvious blanks in the budget.

Here are 10 measures the PM should have prefaced his budget speech with, announced exactly as we have phrased them:

Scrapping of the RM30-40 billion high speed rail project. The government announces the immediate cancellation of the project as the costs are enormous and the benefits are dubious. This project was announced even without a feasibility study being completed. Besides we don’t know when we can get a comprehensive deal with Singapore, a tough and often unreasonable negotiator. With ballooning costs, the project may cost two or even more times. RM80 billion is a lot of money and we are taking this mega project off our list. Given the risks, we are focusing currently only on the mass rapid transit system in the Kuala Lumpur area which could benefit as much as 10 million people or a third of Malaysians. Tiger note: Go here for the real deal on the rail project.
Tun Razak Exchange to become Tun Razak Residences. While this project bears my father’s name, I am doing what he would have expected of me by cancelling the exchange project. As you know 1Malaysia Development Bhd or 1MDB is the developer for this. We are also unhappy with 1MDB’s partnership for this project with Arab interests with Malaysian land and are unwinding this forthwith. It was envisaged that spending for this would have amounted to RM27 billion for 28 acres over 15 years to build high-end office projects. Whatever for, when we have an excess of office space? Instead, this land will be transferred to PR1MA, the body entrusted with developing affordable homes. They will be given the mandate to develop the highest quality affordable homes at the lowest possible prices which will be a showpiece for such housing in Malaysia. The name will be changed to Tun Razak Residences. I am sure my father will prefer this to be annexed to his name than the other. Tiger note: Go here to get the lowdown on TRX.
Liquidation of 1MDB and investigation of irregularities. Due to the many complaints against this shady government organisation, including loan mispricings of over RM4 billion, we hereby declare our intention to liquidate this government company. All illegal transactions will be unwound at minimal loss and associated criminals brought to book. I have given personal instructions to the MACC to commence investigations and bring all miscreants to justice. The Sungei Besi land will be handed over to PR1MA as well for affordable housing. Tiger note: Please go here and here to see what IMDB has been up to.
Cancellation of RM5 billion Menara Warisan project. The government announces the cancellation of this hare-brained idea by Permodalan Nasional Bhd (PNB) to build an uneconomical 118-storey building at an enormous cost of RM5 billion on 7.7 ha of land. Instead we have asked PNB to allocate just RM50 million (1% of the RM5 billion) as part of its CSR programme to restore the entire area, including the historical Merdeka Stadium and Stadium Negara tastefully and to maintain it tastefully and properly for posterity for the Malaysian public. The area so preserved will be known as Taman Merdeka. In honour of our first prime Tunku Abdul Rahman, we will have as a centrepiece for the park a tasteful, note that I emphasise tasteful often, sculpture of our beloved first prime minister hailing Merdeka with his right hand held up high over his head, an image that I, and many Malaysians, have long associated with independence.
Capital gains tax. To tax the ill-gotten gains of share trading on the local bourse I propose forthwith the immediate imposition of capital gains on a graduated scale starting from 30% in the first year to zero percent in the fifth year for all share trading. This will currently only apply to share trading and not initial public offers to encourage entrepreneurship. The move will also help Inland Revenue to nab those who have unexplained assets.
Feasibility studies, open tenders and competitive bidding. To cut corruption and patronage, all major projects over RM1 billion will need to have a professional but quick feasibility study done with public input. Awards post that will be through open tenders only with as much transparency as possible. For those with foreign components direct bids from overseas companies will be allowed to cut expensive, blood-sucking middlemen out. Bumiputera companies will get a 5% price advantage and nothing else to ensure that they are competitive. Tender boards will comprise people of impeccable character and integrity and will be watched over by an independent MACC.
Firm action against corruption. The MACC will be revamped to exclude all those who are tainted and replace them with those of impeccable character and integrity. It will report only to Parliament. Concomitantly we are setting up the long-awaited Independent Police Complaints and Misconduct Commission or IPCMC which will have wide-ranging powers to investigate and take action against police corruption. The police after all are the department perceived to be the most corrupt in the country and we can’t have police who are corrupt if we want to fight corruption.
Procurement. Government procurement has come under attack in the AG’s report. I propose that controls are placed on government procurement and market prices of goods to be purchased are verified independently before purchase. A special body will be set up to investigate specifically corruption in government.
Asset declaration. All ministers, MPs and state assemblymen and senior public officials must make a public declaration of assets. The MACC will investigate obvious discrepancies. In addition all Malaysians over 18 will be required to declare their assets to Inland Revenue which will have the power to investigate them and ask for explanations.
Action against those who can’t explain assets. All those who can’t explain the assets they have will have said assets confiscated and charged for obtaining these assets illegally and for under-declaration of income to the tax authorities. The government will shortly introduce laws for points nine and 10 and aim to have 100% Parliamentary support for these. As honourable, straight, incorruptible MPs, I expect all of them will have no problem supporting these legislation.

Ah, if that was what the Budget was prefaced with, well BN will have no problems in the next elections and the country will have far less problems. So, a nice policy Budget it may be, but what about living by example and cutting the wastage and the corruption which is so, so sorely needed?

GRRRRR!