Category: Economics

There were a lot of talks about the budget recently. About those by the opposition and by the government.

The opposition may have to improve on its budget quality especially on the assumptions made, but I believe the annual tabling of such alternative is healthy and is a positive development in our increasingly flawed democracy. Why? Because it provides a clearer picture of a different near future, regardless whether we agree with it or not. Imagining an alternative (or a utopia even) is always important so that we do not fall into the trap of Doctor Pangloss, or unnecessarily resigning to a bad outcome.

But a budget is just a budget however important it is. It is merely a short-term roadmap towards whatever goals we want to achieve. A better document offering a clearer alternative would be a goal-setting manifesto.

Below is a partial list of matters I would like to see in the manifesto. Some of them are general and others are specific.

I have not costed it, but whenever costing is relevant, I think it is doable. In truth, a lot of crazy ideas are economically feasible and mine, I do not think they are crazy. And some of them may already exist, or in the process to coming to reality. Some admittedly are fluffy.

Let just say it is a non-comprehensive wishlist for further discussion.

Election matters

1. Introduce proportional representation to address gerrymandering and malappropriation in Malaysia. Having a PR system in place of first pass the post would help make our electoral system fairer and so, instil more confidence into our democratic system. It would also be more robust against possible cheating.
2. State funding for all individual contesting for public offices. This hopefully would make money less important in an election. To avoid abuse, candidates failing to get a certain percentage of votes would be required refund the state. Candidates will be allowed to receive contributions from private citizens.
3. Mandatory reporting for all contributions received by all candidates. Limits to be applied on parties and individuals. Contributions will be taxed above a certain limit.
4. A complete ban on private corporations and government bodies from making contributions to any political parties. This includes no program with any political parties. In Malaysia, government bodies especially have serious conflict of interest and this ban would help reduce corruption.
5. Ban political parties from running or owning for-profit entities.
6. Automatic registration for all Malaysians age 18 and above. We should not put up barriers to voting.
7. Yes, reduce voting age to 18.
8. Reinstate local elections, starting with cities with population more than half a million. This should help make local authorities more responsive to the local population instead of to Putrajaya.

Parliament

1. Election of Senators.
2. Create a smaller Senate by limiting federal appointees to no more than total state senators. Federal Territories’ representatives be reduced to 3. Representatives for Sabah and Sarawak be increased to 3 each. This will create stronger check-and-balance in the Parliament and return power to the states.
3. Reserve special seats for the Speaker of the House and the Senate, and have them elected. The Speaker must renounce membership with any political party. This is to ensure fairness in the Parliament.
4. Greater funding for all MPs for area servicing and hiring of research assistants.
5. Parliament to remain in Kuala Lumpur.

Government

1. Ten-year term limits for the positions of prime minister and chief ministers. The years are cumulative. This is to encourage new talents to enter politics and the government. Also, to avoid having a long-term authoritarian as a leader.
2. Enforce retirement age on all civil servants. No contract extension.
3. Public declaration of assets and income for all public office holders, and as well selected civil servants.
4. Encourage diversity in the civil service. Malaysia is a diverse country and our civil service should reflect our demography.
5. Total function separation between the prime minister and the finance minister at the federal and the state levels. This is to address conflict of interest.
6. No minister will be allowed to hold more than one portfolio.
7. Decentralize powers of the Prime Minister’s Department through closure of several agencies or relocation of agencies to other authorities.
8. Separate the office of the AG between government’s legal advisor and the public prosecutor. This will also include separating the AG from appointment/promotion of judges.
9. Downsize the size of the Cabinet. The decentralization of power of the PM Department would also mean fewer ministers without definite portfolios.
10. Limit federal funding to regional development authorities designed to circumvent state governments. States to have strong representation in the relevant regional development authorities.
11. Total separation between the government and Pemandu’s overseas business. The entity will not be allowed to use Pemandu’s name, or government resources. Private enterprises should not use government name or resources for private gains.

Government finances

1. Target 1%-2% deficit of NGDP. Balanced budget unnecessary.
2. Reduce government guarantees for government-linked companies.
3. Migrate civil service pension scheme towards defined-contribution plan fully.
4. Include off-budget spending in government accounts, though no necessarily merged.

Taxes

1. No GST hike in the next 5 years. Rate to stay at 6%.
2. No GST refunds for foreigners.
3. No zero-rated GST for goods bought by corporations.
4. Rideshare services to pay GST.
5. No income tax holiday for TRX.
6. No tax-free treatment for real estate projects.
7. Income tax holiday to be reserved to selected manufacturing and high-tech services.
8. Create several new income tax brackets and push the top income tax rate higher.
9. Close loopholes for corporations with respect to income tax.
10. Negative-income tax for all Malaysians.
11. Wealthy NGOs and religious institutions will be taxed, regardless of profit/non-profit status.
12. Find a way to get global internet companies with operations in Malaysia to pay income tax.
13. Gift or donation above a certain high threshold to private individuals to be taxed.
14. Temporarily reduce income tax rate marginally for married working women to encourage labor participation rate as well as address gender pay gap.

Government-linked companies, funds

1. Complete professionalization of GLCs by banning MPs and retired politicians from heading any government-linked companies or funds.
2. No bailouts of government-linked companies.
3. Remove government ownership in Malaysia Airlines.
4. Reduce government holdings in non-strategic private companies, especially by Khazanah.
5. GLCs to be closely monitored by Malaysian Competition Commission.
6. No Arul Kanda in Khazanah or any other GLCs.

Corruption

1. Independent investigations into 1MDB and all of its related cases.
2. Ensure fair trials for all 1MDB actors.
3. Closing down of 1MDB and SRC.
4. Malaysian Anti-Corruption Commission to be placed under the Parliament to strengthen its independence.

Social services

1. Basic income of RM200 monthly for Malaysians aged 60 and above. This could be an experiment for a universal basic income scheme.
2. Baby bonus of RM1,000 for the first two children. This is to address ageing demography in Malaysia.
3. Citizenship bonus upon birth for all Malaysians, to be invested at PNB funds. Quantum to be decided.
4. Zero cash handling for BR1M. Government to set up bank accounts for those without one.
5. BR1M requirements to be tightened but individual payments enlarged.
6. Central creches to encourage higher labor participation rate, especially among women. Mandatory preschools could double-up as central creches for older young children.
7. Stronger affirmative actions for Orang Aslis and other non-Malay natives. Government agencies managing Orang Asli affairs to be led by Orang Aslis only.
8. Ancestral land of Orang Aslis and those belonging to Sabah and Sarawak native communities to be protected fully.
9. Temporary unemployment benefits, possibly lasting 3-6 months. I think Perkeso can be reformed to manage this. Such benefits also is an automatic stabilizer in the economy, so less need for discretionary fiscal stimulus in times of recession.

Education

1. Malay remains as the medium of exchange in national schools.
2. Malay and English remain compulsory.
3. Offer non-native languages to all students in national schools (this includes major Asean languages: Thai, Khmer, Vietnamese, Tagalog and Burmese).
4. Reduce the role of religion in national schools to sustain diversity, and limit it to religious classes only.
5. Moral classes to be reorganized into civic classes open to all students.
6. Work to strengthen the national school system and make it the first choice for most Malaysians.
7. Greater autonomy for universities and political freedom from students.
8. Mandatory preschooling. Free for poor/lower-middle class families.
9. Mean-tested PTPTN, reserving such funding for poor students only.
10. Meritocratic process entrance into universities. The process will be tempered with socioeconomic concerns to help create a more equal society. Affirmative action for under-represented communities to be merged with the meritocratic process.
11. Limit public undergraduate scholarships abroad. More graduate-level scholarships abroad instead.
12. Mandatory study-abroad for a semester or two for all Malaysian public university students to Asean institutions.
13. Expand places at public universities.
14. Automatic partial scholarship for students from poor families attending public universities, in place of PTPTN.

Health

1. No raising of patent protection period.
2. Increase access to generics.

Homes

1. Limit ownership of residential properties by foreigners.
2. Additional ad valorem tax on foreign-owned residential properties.
3. No expiry on real property tax gains on foreigners.
4. RPGT on Malaysians to be lengthened to 10 years.
5. Tax relief for residential rental payments for Malaysians earning below a certain threshold and landlord up to a certain threshold. This will be combined with the negative-income tax structure.
6. Stronger protection for renters.
7. High-quality affordable public housing for rents in cities and its suburbs especially for the young. This is to encourage the young to remain in the cities. Having the young in will keep the cities lively.

Islam

1. No raising of punishment for Islamic laws violations.
2. Conversion of minors requires approval by both parents.
3. Reduce conflict between civil and shariah courts by defining the division of powers more clearly.
4. Reduce barriers to marriage. Make marriage classes optional.
5. Reduce religious authority’s ability to spy and conduct raids.
6. Remove religious identification on the national identity card.

Discrimination

1. Institute a law to address discrimination in the private sector with a focus on race, religion, political belief and gender.
2. Minimum mandatory 30 days paternity leave to address gender pay gap and change societal expectations on gender.

National service

1. Reorganize into a voluntary 1-year military service, with possible merger with the Wataniah regiment.
2. Strip party politics from the program.

The press

1. RTM to be made more independent and remodelled after the BBC.
2. No licensing of blogs.
3. A media ombudsman to handle public complaints against the press.
4. Pass Freedom of Information Act.
5. Reform Official Secret Act to reduce abuse.

Civil liberties

1. Limit the police’s ability to restrict peaceful assemblies.
2. Address discrimination against religious minority.
3. Sosma to be limited towards terror activities only.
4. Sedition Act to be scaled down.
5. Tighter requirements for book banning.
6. Stronger privacy and data protections law and enforcement.

Environment

1. Limit reclamation projects in Johor, Malacca and Penang. Stronger national requirement for reclamation proposal.
2. Reduce fragmentation of jungle, especially in Peninsular Malaysia. Possible jungle crossings over highways and roads.
3. National park status for Belum-Temengor.
4. No logging within a certain distance from river banks.
5. No development within a certain distance from the beach.
6. Stop new hill development above a certain height.
7. Arm wildlife officers/enforcers and increase punishment for wildlife violations.
8. Yearly federal payments to states for maintenance of primary jungle coverage. Part of the payments to be reserved for replanting purposes to negate previous jungle loss. Audit to be made twice a year on jungle coverage.
9. Reduce logging permits and raise the cost of the permits.
10. Introduce carbon tax.
11. Total ban on sand exports.
12. Rehabilitation funds for land ravaged by illegal bauxite mining in Pahang.
13. Limit dams construction.
14. Work with Singapore to open up water flow under the Causeway.
15. Reduce greenhouse gas emissions.
16. Raise fuel efficiency of vehicles.

Public transport and transport infrastructure

1. Cashless payments to be opened for others and not limited to TnG at all train stations, buses as well as highways.
2. TnG will be forced to provide no-fee reloading access points at all train stations, or contract will not be renewed/early termination if possible.
3. Inquiry to be conducted on why TnG was chosen over RapidKL’s native cashless payments method, and why MRT is unable to process RapidKL’s native cashless payment method.
4. Reassess the need for MRT3 due to low ridership for MRT1. MRT2 to continue as planned.
5. HSR to continue as planned with open tender. Reduce the number of stops.
6. JB-Woodlands rail link to be constructed.
7. No tunnel for Penang.
8. Federal support for trams in George Town.
9. Cancel the ECRL but build a Kuantan-KL double-tracking electrified line. Upgrade the existing East Coast line, with at least electrification.
10. Continue with the Pan-Borneo Highway.
11. Mavcom to be funded directly by the government instead of revenue from airport/passenger taxes to avoid the Commission’s conflict of interest as a regulator and a taxing authority.
12. Daily float of retail petrol.
13. Tax vehicle fuel. Proceeds will be used to subsidize public transport.
14. Renegotiate highway contracts to limit toll hikes as well as possible compensation to contractors.
15. Mandatory deregistration of vehicles after 15-20 years on the road.
16. Much, much higher road tax and excise duties on luxury vehicles.
17. No new port in Malacca.
18. Construct the Labuan-Sabah bridge.

Monarchy and state rulers

1. Head of states are banned from participating in business. Existing holdings to be divested and placed in trust fund managed by the state for rulers’ welfare.
2. Title awards by all states and by the federal government to be significantly limited.

Immigration and border control

1. Abolition of road charges but maintain VEP. VEP to be expanded to all entry points.
2. Work towards visa-free status for all Asean citizens.
3. No airport tax equalization or hike.
4. Work towards the lifting of curfew in eastern Sabah.

Security and defense

1. Cut any role in the Yemen war.
2. No unilateral declaration of curfew by the PM under the NSC Act. The government must compensate any loss of property by innocent victims.
3. Establis IPCMC.
4. Establish Asean security forces.
5. Upgrade facilities in the Spratlys.

Asean

1. Strengthen Asean roles in the region.
2. Work towards to a common Asean position on the South China Sea.
3. Work towards an Asia-Pacific free trade area.
4. Work towards the establishment of an Asean parliament, with representatives elected by Asean citizens.
5. Create Asean scholarships for non-Malaysian Asean citizens at Malaysian universities to encourage integration between Asean countries.
6. Resolve border dispute with Asean neighbors.
7. Accession of Timor Leste into Asean as a full member by 2025.

Internet and communication

1. Enforce net neutrality. Internet service providers are not allowed to bundle connection services with other services.
2. MCMC to focus on service quality and technology adoption. No power to censor the internet unilaterally without consultation with other authorities like Suhakam and the courts.
3. Work to diminish Telekom Malaysia’s monopoly as an ISP with a view to cut down on internet access cost.

Kuala Lumpur

1. Less power for Minister for Federal Territories. Federal government’s decision must be approved by an elected mayor.
2. No new development for Bukit Gasing and Bukit Nanas.
3. Stronger actions against indiscriminate parking. Malls and hotels will be held responsible for illegal parkers outside of its compound to force drivers and property/business owners be more responsible towards their surroundings.
4. More working pedestrian lights and on-grade crossings.
5. Open the relevant KL train stations for free crossing by pedestrians.
6. Wider use of Balisha beacons instead of crossing lights for non-major roads.
7. Enforce pedestrian-first rules versus road vehicles.
8. More pedestrian crossings, and stronger enforcement/punishment against vehicles for not stopping at crossings.
9. Introduction of congestion charges. Income set for public transport funding.
10. Limit the city hall’s ability to close access to  Dataran Merdeka or any public space except for emergency purposes.
11. Maintain green space, and increase large tree counts in the city.

Foreign labor

1. Hiring of foreign labor to be simplified to cut off the middle men and corruption.
2. Reduce human rights abuse faced by foreign workers.
3. Set up mandatory savings(EPF?) for foreign workers in Malaysia to equalize hiring costs between Malaysians and foreign workers. Withdrawal allowed upon return to home country only or emergencies.
4. Clear attainable pathway to citizenship for foreigners, with minimum 10 years residency, no criminal records, Malay language proficiency as some of of them prerequisites. May have to set a yearly quota for socioeconomic and political factors.

Miscellaneous

1. Stronger anti-trust body, focusing on the food, vehicles, properties, construction material, banking, internet, medicine, payments and GLCs.
2. Stronger commitment to open tender. No direct award above a certain threshold.
3. Bigger equalization funds for Sabah and Sarawak.
4. The government to release all public data on the internet in machine-friendly format.
5. Abolish the death sentence.
6. Limit outrider count for government officials and rulers. No outriders for private citizens. Outriders cannot be hired.
7. No duration increase in patent/copyright protection.
8. Jos soli citizenship.

I will add more if I have the time.