Categories
Economics WDYT

[2822] Guess Malaysia’s 1Q16 GDP growth

I have been slacking off a little bit. My models have not been updated as frequently as it should. Reason is, one fine March day, something wiped the models out. Electrons arranged neatly disintegrated into disorder, destroying the microfoundations (heh!) of my models.

I have backup files, but updating them is a tedious exercise.

So, my projections, especially on quarterly basis might be off for now.

Nonetheless, it does not take much effort to look into the latest data.

And I cannot find much stuff to celebrate.

The full industrial production index for the first quarter is not out yet but for February, production grew only 3.9% YoY. Remember, 2016 is a leap year and in essence, people produced more this year compared to the last just because of the extra day. So normalized growth will be lower than that. At the same time, with all the heatwave going on, I think we also need to discount electricity production spike. It is very likely the electricity generated mostly went into cooling purposes instead of for manufacturing. My electricity bill spiked by about 100% in March. Some of my friends had it worse.

February 2016

I am unsure how much the electricity generation surge is due to mining growth recovery (is it a recovery?) however. I can run a regression model I suppose, but meh. Looking at the lines alone can tell you much about the correlation.

The new core inflation published by the Department of Statistics appears stable, suggesting consumption growth might be stable too. But who knows. With the way economy is going, there might be enough slack that increased economic activities would not affect inflation much. Import expansion for the quarter was uninspiring as well, pointing to the possibility that the economy did not go far enough toward fulfilling its potential. Stable (and low?) inflation and weak import growth mean weak consumption growth.

Export growth is also not convincing by the way.

Government spending growth might be hurting. For most of the first quarter, Brent prices were below $40 per barrel and the government really wanted to cut its deficit still. Things might be better in 2Q16, but not before as far as public expenditure is concerned.

In the end, I think growth might be about the same as the last one. Might be slightly slower too for all I know. In 4Q15, the Malaysian RGDP grew 4.5% YoY.

Maybe you know better?

The Department of Statistics will release Malaysia’s GDP figures on Friday, May 13.

How fast do you think did the Malaysian economy grow in 1Q16 from a year ago?

  • 3.0% or slower (8%, 1 Votes)
  • 3.1%-3.5% (8%, 1 Votes)
  • 3.6%-4.0% (23%, 3 Votes)
  • 4.1%-4.5% (54%, 7 Votes)
  • 4.6%-5.0% (8%, 1 Votes)
  • 5.1%-5.5% (0%, 0 Votes)
  • Faster than 5.5% (0%, 0 Votes)

Total Voters: 13

Loading ... Loading ...
Categories
Politics & government

[2821] Who are we to condemn Sarawakians?

I was in Sarawak during the 2011 election. I campaigned for the opposition in Kuching and its surrounding. I helped run a group of volunteers; run is probably an exaggeration but I will use run nonetheless. We were active in several seats but spent most of our time in Batu Kawa, about 10 miles to the south of Kuching. It was and still is a marginal seat. The young Christina Chiew won there. We as a team won.

About five years later, I am utterly disengaged from the campaign. I have no role in it. But that does not mean I feel nothing. When I read up the latest Sarawak election results from across the sea in Kuala Lumpur, I felt sad upon learning the Batu Kawa seat had changed hands, along with a handful of others.

Though expected, the results are still horrible for many who think Malaysia needs change badly. Tony Pua wrote “”¦on hindsight, our Sarawak battle was one of limiting the damage rather than one of consolidating our hold on these seats won in the last elections, or making gains in the rural districts.”[1]

But if I am experiencing melancholy, imagine the sense of devastation of those involved on the ground. Postings on social media say as much. They feel frustrated by the results, especially by the role of money and electoral corruption.

Even in 2011, pressure for corruption was evident. I witnessed it personally. There were several instances outside of town where potential voters explicitly wanted money in exchange for their votes. We — as far as I know — did not pay for it. I certainly would not pay straight from my wallet. There was no RM2.6 billion in my bank account, much less my pocket. Instead, we smiled, shrugged and moved on knowing we lost the battle in those instances. I was really too shocked to reply anyway.

What mattered we won the bigger battle because people were angry at Taib Mahmud so much that money would not matter enough.

But 2016 was different. There was more money it seems, and there was no Taib Mahmud. Furthermore, several friends from Kuching said residents were ambivalent about Chiew, citing her inexperience and track record. But whatever the complaints against her, the opposition, either DAP or PKR — I would put Pakatan Harapan, but there is no such thing in Sarawak — faced the Adenan Satem effect and the renewed vigor of money politics.

I can accept the popularity of Adenan. It was the same for Abdullah Badawi when the people was tired of Mahathir Mohamad. What worries me more and more is the role of money in Malaysian politics. The case of Sarawak is one where money for votes is the norm.

The obvious danger is that a wrong would never be wrong again. It is the snowball effect transforming the nature of elections. Democracy loses its meaning. Both elections and democracy as concepts risk becoming one-in-a-while cash transfer program, much like an ersatz BR1M.

It would be no mere pork-barreling anymore. It will be just bribery.

I am not condemning Sarawakian voters for participating however. In many ways, I understand why people take the money. It is a combination of desperation and power. Voters there have not much of a choice.

While in the peninsula, the people are not scared of the sticks and carrots of development politics, the case is different for rural Sarawak. They are at the mercy of the state — at Barisan Nasional’s generosity. If your place in the rural area gets an opposition representative, you would be marginalized. If you had no power and clean water supplies, there is a guarantee you will never get it from the state. The government will use the state to punish you, much more than they use it in the peninsula.

Would you condemn Jean Valjean in prison for 19 years for stealing a loaf of bread in order to avoid starvation? I would not and I would cut him some slack.

But for how long and how far a slack?

And if the whole of population engages in such corruption, would you prosecute all of them?

It becomes an outrageously impossible notion. I feel in the end, either you too participate in the corruption because it is the way of life now, or all of us stop and grant amnesty to everybody.

But the real life is rarely the latter option. Life is a snowball. At the national level, the snowball is rolling unmelted under the hot sun into 1MDB and Najib Razak. Nobody has been able to stop Najib or Barisan Nasional.

The snowball continues rolling on unabated, becoming our way of life just as money for votes is part of Sarawak’s politics.

It is in this sense that I am not condemning Sarawakian voters. Just as many of us in Kuala Lumpur feel powerless in the 1MDB case, so too Sarawakians feel, I think, in their local context. Who are we in the peninsula, then, to condemn Sarawakians?

We feel powerless about national politics. Why should we in the peninsula blame many Sarawakians for being powerless in their own state? There is no blame game to play here if we are honest and consistent to ourselves.

Mohd Hafiz Noor Shams. Some rights reservedMohd Hafiz Noor Shams. Some rights reservedMohd Hafiz Noor Shams. Some rights reserved

[1] — In addition to the pressing issues surrounding GST and Najib’s scandal, we emphasized repeatedly on the need for check and balance via a strong opposition to ensure that Adenan didn’t become the next “pek moh”.

Despite the seeming strength of the message, it obviously did not have sufficient traction even among the urban voters. People were sufficiently happy with the few apparent concessions Adenan gave. They were more than happy to overlook the continued corruption in the BN regime and the implications on the people via higher taxes. The rampant and blatant abuse of power by Adenan, such as banning Members of Parliament from entering the state also didn’t matter too much to them.

However, perhaps, had we not campaigned that hard, we might have lost even more seats. Therefore we must thank those tens of thousands of supporters who continued to stick to us under such trying circumstances. Hence on hindsight, our Sarawak battle was one of limiting the damage rather than one of consolidating our hold on these seats won in the last elections, or making gains in the rural districts. [Tony Pua. Paying the price for not ”˜paying up’. May 8 2016]

Categories
Society

[2820] A god to justify us

Yet a personal God can become a grave liability. He can be a mere idol carved in our own image, a projection of our limited needs, fears and desires. We can assume that he loves what we love and hates what we hate, endorsing our prejudices instead of compelling us to transcend them. When he seems to fail to prevent a catastrophe or seems even desire a tragedy, he can seem callous and cruel. A facile belief that a disaster is the will of God can make us accept things that are fundamentally unacceptable. The very fact that, as a person, God has a gender is also limiting: it means that the sexuality of half the human race is sacralized at the expense of the female and can lead to a neurotic and inadequate imbalance in the human sexual mores. A personal God can be dangerous, therefore. Instead of pulling us beyond our limitations, “he” can encourage us to remain complacently within them; “he” can make us as cruel, callous, self-satisfied and partial as “he” seems to be. Instead of inspiring the compassion that should characterize all advanced religion, “he” can encourage us to judge, condemn and marginalize. It seems, therefore, that the idea of a personal God can only be a stage in our religious development. The world religions all seem to have recognized this danger and have sought to transcend the personal conception of supreme reality. [Page 209-210. A History of God: The 4,000-Year Quest of Judaism, Christianity and Islam. Karen Armstrong. 1993]

Categories
Economics

[2819] Minutes to the MPC a trade-off between transparency and frank discussion

Bank Negara Malaysia does not publish the minutes to its Monetary Policy Committee meetings, unlike the Federal Reserve in the United States. This keeps the rationale behind rate-setting decisions murky to outsiders sometimes.

A few economists in the past several years have bugged the governor on the matter. Acquaintance Jason Fong from RAM Ratings yesterday asked Zeti whether BNM would release its MPC minutes. She provided the same answer she gave last year — I think, also asked by Jason — that maybe in the future, the central bank would allow certain PhD students to go through the minutes for their thesis. The short answer is, disappointingly, no.

The demand for transparency goes by back to professional economists’ attempt at understanding various decisions taken by the MPC. Detailed minutes would reveal who thought what, and explain the MPC statements clearly. A more transparent process would ultimately helps in projecting the Overnight Policy Rate or other aspects of monetary policy.

But yesterday, I suppose since it was her last big briefing with all the economists in town, she felt a bit generous and volunteered a longer answer. It is a good response I think, highlighting the trade-off between transparency and frank discussion.

She reasoned having published minutes could keep participants from discussing various issues freely during the meeting. Some may even be encouraged to state something just to be on record without sharing what he or she really thinks. The end result could be one where not all views will be shared and not all views are actually honest, leaving the final decisions incapable of aggregating views of the committee members accurately.  Zeti said MPC decisions are currently reached through consensus, which means, I guess, no voting.

I understand her point. I would also add having secretive element into the process protects meeting participants from political backlash, much in the spirit of Chatham House Rule, where privacy is the key to robust and frank discussions.

While I do not disagree with the governor, I can think an instance where her point could be weak.

The MPC can get away with that reasoning because there is a lot of trust in the competency and the motive of the committee members. If the next governor is one who does not inspire confidence, I think the importance of transparency will outweigh the importance of having frank and robust discussions.

These days, after all, the trust deficit is not merely a mere gap anymore. It is a gaping hole.

While Zeti is respected in the industry and everywhere else, the next governor — as well as the Finance Minister (the office which effectively appoints the governor) who is also the Prime Minister of multiple conflicts of interest —presents us all with a big question mark.

Categories
Society

[2818] God in the marketplace

There are times when books of different focus and field would run parallel with each other and reveal new insight on a specific idea, making that particular idea richer.

I recently finished Jürgen Kocka’s Capitalism where he touched on, among others, the shift of power from feudal lords to the merchant class. I am currently reading Karen Armstrong’s A History of God and this is what she has to say on the (somewhat) same subject:

The story of Elijah contains the last mythical account of the past in the Jewish scriptures. Change was in the air throughout the Oikumene. The period 800-200 BCE has been termed the Axial Age. In all the main regions of the civilized world, people created new ideologies that have continued to be crucial and formative. The new religious systems reflected the changed economic and social conditions. For reasons that we do not entirely understand, all the chief civilizations developed along parallel lines, even when there was no commercial contact (as between China and the European area). There was a new prosperity that led to the rise of a merchant class. Power was shifting from king and priest, temple and palace, to the marketplace. The new wealth led to intellectual and cultural florescence and also to the development of the individual conscience. Inequality and exploitation became more apparent as the pace of change accelerated in the cities and people began to realize that their own behavior could affect the fate of future generations. Each region developed a distinctive ideology to address these problems and concerns: Taoism and Confucianism in China, Hinduism and Buddhism in India and philosophical rationalism in Europe. The Middle East did not produce a uniform solution, but in Iran and Israel, Zoroaster and the Hebrew prophets respectively evolved different versions of monotheism. Strange as it may seem, the idea of “God,” like the other great religious insights of the period, developed in the market economy in a spirit of aggressive capitalism. [Page 27. A History of God: The 4,000-Year Quest of Judaism, Christianity and Islam. Karen Armstrong. 1993]

Heh.