September 29th, 2005 by Hafiz Noor Shams
Malaysian 2006 national
bajet budget is fast approaching. One of few things that I wish is that the government won’t run populist policies, like preventing fuel prices hike for instance. In fact, I do hope, however unlikely it might be, an introduction of floating fuel prices regime in the end future. Gradually, of course.
Worry about inflation? Let the government worry about fiscal-side and let the central bank worry about monetary policies. It’s time we differentiate the two institutions clearly. By differentiate, I do mean an independent central bank. There are proofs that countries with independent central bank have significantly lower inflation.
Worry about unemployment due to lower inflation? Ah, that’s another problem. Rest assured however that in the long run, both inflation and unemployment don’t matter!
While some of us are nervously wondering what awaits us in that Pandora’s box, we must realize that there is more than one way to skin a cat or cats. One way is to wash them rigorously in a washing machine.
Another wish is total elimination of income tax and introduction of consumption tax. (wait, we’ll have both income tax and consumption tax in 2007! Somebody is cheating us!) In short, full cost accounting. Heh, a green’s wet dream.
A not-so-bad news in the eve of budget day is the recently released World Economic Forum’s competitiveness ranking. Malaysia’s ranked 24th out of 117, up seven rungs from last year.
And, erm, no cat was harmed in any whatsoever way.
Inconvenienced? Well, the mother cat was pretty mad. Very.
p/s – cool stuff! KoRn with World of Warcraft!
pp/s – added Primate Noise to my blogroll.
ppp/s – Santa is real! Be afraid. Be very afraid because the Danish Air Force learned about Santa the hard way.