Najib’s task..

Najib as the new Finance Minister should be more forthcoming on our economy and how the Government proposes to insulate us against the tidal wave of economic bad news. the Malaysian economy is an open one and we need to take immediate remedial measures. The recent move to cut the helicopter deal does not fall into the category of fiscal action that will help. It merely postpones the development/capital expenditure to a later date!

This points out that commecial paper creation and trading, the life blood of trade and commerce, is shrinking. The same is true for bonds and other forms of credit creation. Our interest rates, though low enough, may need to be adjusted down as has happened with nearly all our neighbours.

Given the current situation where the private sector is not going to take the initiative, and with banks not giving the full credit support that the private sector needs to operate optimally, that leaves only fiscal policy measures to safeguard and insulate our economy.

All unnecessary expenditure must be immediately put on the backburner while the Govt embarks on direct pump priming that will not only have immediate impact but will result in longer term value adding to growth. This means public works and infrastructure.

Agriculture, especially food production, needs to be prioritised; SMEs need further tax incentives while the services sector also needs to be pushed. Fiscal policy measures do not just mean tax measures. I am sure the FM knows the range of tools under his direct control. That means he should not wait until next year to review the budget that was just revealed in Parliament. That Budget was premised on conditions that do not exist any more and are unlikely to return.

Boosting the stock market may be confidence building but it would be of more value if the brokers margin call are mitigated with bank support so that the market freefall can he slowed down. Secondly, revenues were premised on prices of commodities before the financial and economic breakdown of the West. We have to adjust our cloth to fit the new cut.

Monetary policy measures including direct intervention by BNM, like the Fed Reserve in new credit creation, may be necessary if the banks are afraid to lend money. as mentioned earlier, institutional investors are not accepting or renewing commercial paper take up nor bond issues. Banks may be holding back on loan drawdowns. BNM need to monitor this and ensure the economy's lifeblood, that is credit, does not suffer from blockage or seizure.

Human rights: Practice what you preach

With so much rantings and accusations by people who see themselves as champions of every mode of freedom, one question begs to be answered.

Do we realise how in many instances the change must first be done right in our own homes?

Although many of us Malaysians hold high respect for the rights and freedom of others, sadly there are still those who do not practice what they preach.

One stark instance is the denial by some unscrupulous people who employ maids of different religious belief. How many times have we seen or heard complaints by these unfortunate maids that they were often denied the right to practice their religion?

It is true. There are employers who would not hesitate to force their maid to handle pork and forbid them from performing their prayers.

Our hearts bleed to hear all these, for here we are, beyond the confines of our private castles we would not hesitate to hit out at any perceived attempts to restrict free religious practice, although our observations have often been skewed and distorted by narrow perspectives.

While some may gladly allow their maids to practice their religious duties, there are still many others who, aware of the fact that the maids under their employment are Muslims but nevertheless take advantage of their youthful ignorance and abet in the degeneration of their religious duties.

So, employers...have a heart...dont do this to others if you do not want others to do the same unto you.

Capital Flight: Anwar silap

Anwar menyangka dapat menjatuhkan kredibiliti ekonomi negara semasa mengambil bahagian pada satu forum di Hong Kong baru-baru ini.

Fakta yang dikemukakannya salah kerana pengaliran FDI dari Malaysia sebenarnya bukan boleh diertikan sebagai 'capital flight.' Ia adalah pengaliran keluar dana oleh syarikat-syarikat transnasional kepunyaan Malaysia sendiri secara terancang.

Ini membuktikan aliran keluar (82% atau A$10bil) dan masuk sebenarnya positif walaupun pengaliran keluar mengatasi pengaliran masuk.

Jika Anwar ingin menyerang kerajaan, dia sepatutnya mengingatkan dirinya dahulu bahawa dialah penyebab utama ketidaktentuan politik yang menyumbang kepada pengurangan pelaburan dari luar pada waktu ini. Malah diketahui Anwar telah mengadakan beberapa perjumpaan dengan para Pengurus Dana bagi memujuk mereka agar tidak melabur di Malaysia.

Ini jelas satu pengkhianatan nyata, semata mata kerana dia terlalu gilakan jawatan PERDANA MENTERI.