Speech by Lim Guan Eng during the DAP
Sabah State Convention in Kota Kinabalu on Saturday, 13th December 2008:
DAP proposes a RM 50 billion economic stimulus plan to fight the
recession instead of BN’s puny RM 7 billion plan that Malaysians can not
see, can not touch and can not feel
DAP proposes a RM 50 billion economic
stimulus plan to fight the recession instead of BN’s puny RM 7 billion
plan that Malaysians cannot see, can not touch and can not feel. No one
knows how this BN RM 7 billion expansionary economic plan is going to
help 27 million ordinary Malaysians. What we know is that the few BN
cronies will benefit from a failed system that permits financial
malpractices and abuses of power.
Malaysia economic growth in the third quarter this year, with a real
gross domestic product (GDP) growth of 4.7% compared with 6.3% and 7.1%
in the second and first quarter, respectively, is the lowest quarterly
growth in three years. The BN government must wake up from its denial
mode that Malaysia will not slip into recession following the global
financial crisis.
Malaysia must follow China’s aggressive fiscal and monetary measures of
both fighting the oncoming economic recession and looking beyond towards
economic recovery. China announced the largest economic stimulus plan of
USD 586 million over 2 years. However its 30 local governments has
announced a larger USD 3.5 billion spending over 5 years. With total USD
4 trillion spent by China, this is almost double its international
reserves of USD 2 trillion.
Comparatively Malaysia’s fiscal stimulus spending is only USD 2 billion
or RM 7 billion, which is 2% of of our international reserves of RM343.8
billion (USD 100 billion). What is RM 7 billion in a budget of RM 207
billion, so insignificant that the people can not see, can not touch and
can not feel any difference?
The country’s resources must be mobilised to fight the recession and
prepare for a more prosperous future through good governance and an
expansionary budget that is pro-growth, pro-jobs and pro-poor. DAP
proposes a larger RM 50 billion or USD 14 billion expansionary budget
which is 14% of our international reserves, so that Malaysians can see,
touch and feel comprising as follows:
1. RM 6,000 annual oil bonus to all
families earning less than RM 6,000 a month or RM 3,000 annual bonus
to bachelors earning less than RM 3,000 a month will cost RM 35
billion or a mere one-third of Petronas last year’s gross profits of
RM 107 billion;
2. Progressive reduction
of corporate tax rate from the present 25% to 17% which will cost RM
13 billion;
3. Daily revision of petrol
prices to take into account of changes in the international price of
oil;
4. Immediate reduction in gas prices
as well as electricity tariffs, which was increased by 26% for
businesses when the price of oil was USD 124 per barrel to reflect
in the drop to around USD 50 per barrel; and
5. An additional RM 2 billion wireless project to make all the major
towns and cities in Malaysia wifi so that as many Malaysians as
possible can be connected to the Internet.
The expansionary budget must not only fight
the recession but also invest in infrastructure projects such as
extending transport, communications, and broadband coverage that allows
us to look beyond the recession. With the infrastructure in place when
the economy recovers, Malaysia can take full advantage. A free wireless
for all Malaysians, much like the free wireless initiative by Penang to
become the first wifi state in Malaysia, will help to attract both
foreign investors and tourists.
The time has come for ordinary Sabahans to benefit fully from the fruits
of Malaysia and Sabah’s economic growth. Sabah is the worst state to
live in Malaysia because it is not just the least developed state but
also the most inequitable with not only the poorest people in Malaysia
but also with the richest police possessing unaccountable and
extra-ordinary wealth of RM 27 million.
Further it also highlights that Sabah is probably the most corrupt state
apart from being the worst managed and worst state to live in Malaysia.
Sabah has the second lowest water supply coverage, the highest
population growth, the largest number of illegal immigrants (pendatang
tanpa izin), the highest poverty incidence, the poorest
electricity/energy efficiency and supply as well as the least developed
state in Malaysia.
Sabah has also the highest population growth rate in the country at 3.1%
as compared to the national average of 2.3%. Its population jumped by
530,000 or more than 20% in the space of 5 years from 2.6 million in
2000 to 3.13 million in 2005. Former senator Dr Chong Eng Leong from the
Parti Bersatu Sabah (PBS), alleged that there are around 1.75 million
foreigners in Sabah today, including those in possession of Project
Mahathir’s ICs, as compared to 1.5 million genuine locals in Sabah At
least 50,000 ICs have been issued to foreigners under the secret
‘Project Mahathir’.
Sabah has the largest number of illegal immigrants and those with
genuine ICs under “Project M” estimated at nearly 1 million. The
extraordinary growth of the Sabah population can be shown that in 1960,
the Kadazandusun population was 168,000 and equaled the number of other
Bumiputeras. In 2000, while the Kadazandusun population increased to
560,000, the population of other Bumiputeras had grown to 1.1 million.
Sabah has the worst incidence of poverty at 23% in 2004 as compared to
Sarawak’s 7.5% and Kelantan’s 10.6%. The incidence of poverty in
Peninsular Malaysia is 3.6% and for the entire country 5.7%. DAP does
not understand how the Sabah Development Corridor(SDC) can reduce
poverty or benefits ordinary Sabahans.
For a 18-year SDC that is part of a federal government economic plan
that covers the entire state is unusual and an indirect admission of the
Sabah State government’s failure in economic management. During its
implementation period, 900,000 new jobs are expected to be created with
new investments of RM 105 billion, while Sabah’s GDP in the agriculture
sector would increase four times to RM17 billion.
What would happen if the investment target of RM 105 billion is not
achieved when the Federal government has only allocated a miserly RM 5
billion? And are the 900,000 new jobs to be taken up not by local
residents but by PTIs? These concerns are valid when there is a huge
drop in investment in Sabah from RM 3,258 million for 2007 as compared
to only RM 850 million for the first nine months of the year.( see MIDA
figures in the table below) In contrast Penang’s investments rose from
RM 4.77 billion for the whole of 2007 to more than RM 8 billion for the
first 9 months of the year.
The time has come for a people-centric government and people-oriented
development strategy that allows Malaysians and Sabahans to directly
benefit that they can see, touch and feel the difference.
Projects Approved by State, 2008
and 2007 ( RM )
State |
Jan - Sept 2008 |
2007 |
No. |
Domestic
Investment |
Foreign
Investment |
Total Proposed
Capital Investment |
No. |
Domestic
Investment |
Foreign
Investment |
Total Proposed
Capital Investment |
(RM) |
(RM) |
(RM) |
(RM) |
(RM) |
(RM) |
Sarawak |
26 |
694,943,660 |
12,558,138,536 |
13,253,082,196 |
23 |
403,047,608 |
631,418,240 |
1,034,465,848 |
Johor |
115 |
1,959,290,925 |
9,004,049,608 |
10,963,340,533 |
188 |
2,495,412,449 |
6,747,426,115 |
9,242,838,564 |
Pulau Pinang |
106 |
4,790,192,785 |
3,212,567,554 |
8,002,760,339 |
134 |
1,625,246,462 |
3,143,414,785 |
4,768,661,247 |
Selangor |
211 |
1,913,070,437 |
5,486,403,506 |
7,399,473,943 |
318 |
6,989,739,432 |
4,191,710,937 |
11,181,450,369 |
Melaka |
25 |
106,866,838 |
3,443,249,216 |
3,550,116,054 |
38 |
1,618,503,951 |
2,219,208,654 |
3,837,712,605 |
Perak |
33 |
580,851,452 |
2,368,599,206 |
2,949,450,658 |
59 |
651,687,036 |
1,382,919,999 |
2,034,607,035 |
Kedah |
36 |
237,510,782 |
2,254,164,195 |
2,491,674,977 |
46 |
7,856,661,494 |
6,133,555,679 |
13,990,217,173 |
Perlis |
2 |
949,229,755 |
327,520,127 |
1,276,749,882 |
2 |
7,110,000 |
- |
7,110,000 |
Pahang |
19 |
1,111,233,137 |
63,565,982 |
1,174,799,119 |
28 |
406,893,791 |
1,156,870,397 |
1,563,764,188 |
Negeri Sembilan |
19 |
782,715,095 |
256,266,185 |
1,038,981,280 |
40 |
493,616,883 |
2,181,946,337 |
2,675,563,220 |
Sabah |
30 |
576,698,827 |
273,120,185 |
849,819,012 |
41 |
1,080,883,461 |
2,176,661,327 |
3,257,544,788 |
Terengganu |
7 |
634,276,230 |
118,482,997 |
752,759,227 |
11 |
2,772,157,162 |
3,391,072,131 |
6,163,229,293 |
Kuala
Lumpur |
11 |
94,018,240 |
23,438,350 |
117,456,590 |
12 |
52,761,459 |
39,594,450 |
92,355,909 |
Kelantan |
2 |
- |
66,000,000 |
66,000,000 |
9 |
52,576,800 |
30,090,000 |
82,666,800 |
Labuan |
1 |
9,795,046 |
445,462 |
10,240,508 |
- |
- |
- |
- |
*
Lim Guan Eng, DAP
Secretary-General & Penang Chief Minister