Categories
Economics Politics & government

[2106] Of thumbs up for MP from Bukit Bendera on GST

With respect to the proposed implementation of the goods and services tax, MP Liew Chin Tong said:

“This is a huge sum for a study. The Finance Ministry should explain what kind of study this is, who is conducting it and which consultancy firm is handling the study.

“The idea of implementing this kind of study needs serious national debate.

“When Australia implemented the GST in 1998, it was decided based on a referendum.

We need to debate whether we need the GST or whether the Government should cut down its spending instead” [Parliament: Why RM22m for GST study? Zulkifli Abd Rahman. The Star. November 3 2009]

Indeed.

Categories
Photography Travels

[2105] Of more dunes

Nothing to write.

Some right reserved.

My mind is something like that at the moment; empty.

This is somewhere near Port Stephens, New South Wales.

Categories
Economics

[2104] Of the government continues to expand under the 2010 federal budget

As a libertarian that I am, I can only sigh after reading the 2010 federal budget speech delivered by the Finance Minister.

I begin from a point deep in the realm of skepticism. I never actually believe any government in Malaysia — now or in the near future, neither Barisan Nasional nor Pakatan Rakyat — would largely retreat from the marketplace to leave the market to its own device in most cases. There are simply too many political considerations that go against the notion of free market here in Malaysia.

Firstly, businesses are politically-connected to make the government pro-business. In fact, the government itself is involved in businesses through its oligopolies to crowd out private initiatives. This has not even considered the erased line between the government and Barisan Nasional, where public properties are used for personal and political gain. For the government to touch itself openly is inevitable. That is the likely result in the case of conflict of interest, which is hardly surprising at all. There is no decency anymore these days.

Secondly is the developing entitlement mentality. Fuel subsidy is a right. Free highway is a right. Scholarship to universities abroad is a right. Bonus is a right. With such mentality and with both Barisan Nasional and Pakatan Rakyat racing on this front, government expansion is the only logical way forward. We have seen how the Islamization race between UMNO and PAS ended. It does not take a leap in imagination to picture the end result of the race between Barisan Nasional and Pakatan Rakyat to the left.

Early in the speech, the Finance Minister mentioned the scope of government intervention and it is wide. In his own words, the government ”will transform Malaysia through a comprehensive innovation process, comprising innovation in public and private sector governance, societal innovation, urban innovation, rural innovation, corporate innovation, industrial innovation, education innovation, healthcare innovation, transport innovation, social safety net innovation and branding innovation.”

That is a mighty goal, especially given that many governments perform poorly in the area of innovation when put head to head with the free market.

No matter. The government knows best and god saves us all.

Regardless of the budget, a new industrial policy that necessarily calls upon government intervention appears imminent. The talk of a so-called new economic model or really, a central planning exercise with new emphases has been going on for months now. Different goals, same paradigm.

The best symbol of paternalism available in the budget that a layperson can identify with is the proposal to charge an annual lump sum fee on credit cards. The Finance Minister claims that this is done to promote prudent spending. It is, as if, all individuals are doomed to spend all of their money dry.

Never mind that the government itself is spending imprudently. I wonder if an individual with his or her own money would buy a laptop priced at RM42,320. Whatever the answer, we know that some government institution has done that. Open up the auditor report. Year in and year out, it is the same old story. Yet, individuals have to suffer paternalistic attitude from a hypocritical government, which is convinced that individuals cannot manage their finance.

On the contrary, the government should really worry about its own financial status first rather than trying to tweak individual behavior, from savings to spending. Its revenue is going down and its expenditure is growing, the abnormal spending caused by the stimulus package notwithstanding.

The government seems to be addressing that problem by introducing goods and services tax later in hope to increase its revenue; not in 2010 but maybe in 2011. I personally like such consumption tax, but only if it neutralizes amount of theoretical loss due to income tax. To have both is to reduce welfare of individuals. Other than that, the government is even preparing to rents out some of its premises to the public, among other things.

The reform effort at the fuel subsidy regime is likely to help but it is unclear how that would be effective in rectifying government finance in light of expanding roles of government in the country.

The size of government expenditure — regardless whether it is caused by corruption, incompetence or by simply misguided conscience to help — needs curbing, if the problem of government finance is to be effectively addressed.

With a little luck, such retreat will give the private sector more space to flourish and contribute to government coffer, in the long run.

Yes, in the long run, we are all dead as Keynes wrote. Remember however that we are here now because of quick fixes — get the government to do it.

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

First published in The Malaysian Insider on October 27 2009.

Categories
Solar car

[2103] Of Michigan is second, for now

So, here is the breakdown.

Umicore, which showed promise to dominate the solar car race here in Australia earlier, has crashed and is out of commission. Everybody from the team is fine, fortunately.

Another great team Aurora has problem too and is not in the top five.

Tokai is sprinting away from the rest with Michigan in the second place. Nuon is fast catching up with Michigan. At one time, Nuon was only 10 minutes behind Michigan.

You can see Nuon’s obsession with Michigan in the following video.

[youtube]rew_tYGKx0k[/youtube]

The race is now slightly over half way through.

My expectation is that Tokai is likely to finish first. As shown at the end of the video, the Japanese are simply too far ahead. The Sydney Morning Herald’s yesterday report corroborates this by stating that Tokai was 70 km ahead of Michigan.

Second and third places are up for grab between Michigan and Nuon. Nuon’s progress is definitely impressive given that they suffered a crash earlier. This further demonstrates why Nuon is a great team.

[youtube]743I3IS7VtY[/youtube]

Whatever it is, Go Blue!

Categories
Solar car

[2102] Of it is solar car time again

Reading news[0] of the University of Michigan Solar Car team leaving Darwin behind racing in the World Solar Challenge reminds me of memories forged in Ann Arbor and Ypsilanti in Michigan. Friends are sometimes curious why do I give so much attention to solar car races. The reason is simply that I was part of the student group that was responsible for building Michigan’s 7th generation solar car. Though the car, Spectrum, embarrassingly became the first car from Michigan to fail to qualify for the North American Solar Challenge — the NASC or as it was known then, the American Solar Challenge, is probably the second most important race after the World Solar Challenge — I am immensely proud of whatever minor role I played for the team.

Besides, it is Michigan. I am everything I am, because of Michigan. I am eternally indebted to the school and I do not write these words lightly.

I wished I had participated in building the 8th generation car, Momentum, because this team went on to avenge the disaster of Spectum. They won the NASC and clinched the third place in the WSC.

I had serious personal problem then that I was forced to cease participation with solar car. On top of that, my grades were hurting. The amount of time spent on solar car per week was too much for me. At one time, I spent roughly 36 hours per week either testing solar panels, helping or rather, really, watching wire harnessing exercise or simply, hanging out in the workshop in Ypsilanti.

I needed to concentrate on my life. I needed to rebuild it. Something had to give and I regretfully chose solar car.

If I remember correctly, Momentum itself was named to remind all of the effort done on SpectrumMomentum was built from the lessons of Spectrum. In a way, Momentum had Spectrum’s momentum. The members of Momentum were mostly with part of Spectrum team anyway.

I remember friend Mirai Aki (the three miles incident will remain forever as the most hilarious episode I have experienced yet), the first person I befriended with with respect to solar car, and several others, working on Momentum, determined to redeem pride lost in 2003. They did Michigan proud in 2005.

In 2007 and 2008, the 9th generation car, Continuum, proved why Michigan is the most successful solar car team in North America. The team won the race outright. In the corresponding World Solar Challenge, Continuum managed the seventh place, despite suffering from an accident earlier in the race. Nuon from the Netherlands went on to win the first place, as they always do. Nuon has always been the giant to beat in solar car racing. The other giant is the Aurora team from Australia.

The 10th generation car called Infinium appears to have an opportunity to do better than Momentum. Indeed, I would go as far as saying that Michigan actually has a real chance of winning the World Solar Challenge this year because Nuon, like Michigan in 2007, has suffered from an accident days earlier. With the giant Nuon out of commission, Michigan stands, in my view, as the favorite to win.

Two days into the race, Michigan is now placed third behind Belgian Umicore and Japanese Tokai. Nuon is currently fourth behind Michigan.[1] I am unsure what is happening to team Aurora however.

Nevertheless, this is only the first stage. There are hundreds of mile to go yet. It is way too early to celebrate anything.

What is special about this race is that, for the first time ever, I am in Australia and I will have the opportunity to witness Michigan crossing the finishing line in Adelaide. As I left Malaysia behind on an airplane, that was what I told myself. I want to be in Adelaide when that happened.

I am unsure if I will fulfill that promise that I made to myself. I have papers just a week away from the expected day the race is to end. Travelling to Adelaide from Sydney may require me to sacrifice time that I need to prepare myself for my papers.

Following this race will be exciting. In 2007 and 2008, global position system and blogging tools were heavily used. I think that revolutionized the way individuals track progress. This time, well, we have Twitter.

In any case, to Michigan, to Infinium, I say good luck. Bring the trophy back home to Ann Arbor. It has been long overdue.

As they say it, go fast, go smooth and go Blue!

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

[0] — After winning back the Ashes, the Brits are gunning for the World Solar Challenge, the race across Australia for cars powered only by the sun.

A team from Cambridge University has entered the race for the first time and with the backing of new Formula One champion Jenson Button, has immediately been listed among the favourites.

The 3,000km race from Darwin to Adelaide gets underway on Sunday with the leading cars expected in Adelaide a bit over three days later.

Hot favourites are the Nuon Solar Team from the Netherlands with their car Nuna 5.

The team holds the race record and has won the past four events.

But organisers say the Dutch will be under pressure this year after a testing accident in Darwin that badly damaged Nuna 5.

The Dutch also face a strong challenge from the University of Michigan’s car Infinium, the Belgium entry from the Umicore Solar Team called Umicar Inspire, Germany’s BoCruiser car from the HS Bochum team, the Swiss entry Heliox II, Australia’s own Aurora 101 and the Cambridge team with its car dubbed Endeavour.The team successfully made it Katherine. They are currently in 3rd place, trailing Tokai and Umicore by 5 minutes. After a roadside pit stop, Nuon is in 4th place trailing by 10 minutes. Weather is sunny so all top teams are hitting speeds between 100KPH and 110KPH. [Brits battle Aussies in solar car race. Tim Dornin. Sydney Morning Herald Tribune. October 23 2009]

[1] — The team successfully made it Katherine. They are currently in 3rd place, trailing Tokai and Umicore by 5 minutes. After a roadside pit stop, Nuon is in 4th place trailing by 10 minutes. Weather is sunny so all top teams are hitting speeds between 100KPH and 110KPH. [Infinium Reaches First Check Point. University of Michigan Solar Car Team. October 24 2009]