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If the RM 6.75 billion had not been used to purchase 6 Offshore Naval Patrol Vessels (OPVs) that are either undelivered or delivered but not operational, the government would have eradicated poverty in Malaysia

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Speech at “The Malaysian First Budget 2008 - Who Benefits?”   

by Lim Guan Eng

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(Damansara, Wednesday): Prime Minister Datuk Seri Abdullah Ahmad Badawi claims that this 2008 budget is good for all Malaysians. But the exposes of abuses, misuses and mismanagement of funds in the 2006 Auditor-General’s Report shows that it is good only for corrupt and errant government officials but is “a can of worms” that is not so good for ordinary Malaysians.  

The litany of sad cases of abuse of public trust and cheating the public ranges from the small such as the National Youth Skills Institute (NYSI) buying 2 units of two-tonne car jack for RM 5,471 per unit when the market price is only RM 50 per unit as amongst the 13 items the NYSI paid RM 8.39 million more than the market price in 2002; to the huge expected loss of RM 6.75 billion in the Defence Ministry following the purchase of 6 off-shore naval patrol vessels (OPVs) that were either delivered but not operational(2) or still not delivered (4). 

If the RM 6.75 billion had not been used to purchase 6 OPVs that are either undelivered or delivered but not operational, the government would have eradicated poverty in Malaysia. Out of the huge RM 176.9 billion 2008 Budget comprising RM 128.8 billion operating expenditure and RM 48.2 billion development expenditure, only RM 331 million has been allocated to eradicate hard-core poverty. 

Under the 9th Malaysian Plan RM 4,465.3 million development allocation has been set aside to alleviate poverty by eliminating hard-core poverty and halving overall poverty from 5.7% to 2.8% in 2010. If the government had allocated RM 6.75 billion wasted on the 6 OPVs, poverty would be eradicated in Malaysia. Furthermore RM 7 billion has been set aside by the 2008 Budget for security sector which is almost the same as the RM 6.75 billion loss from the 6 OPVs’ scandal. 

How then can MCA President Datuk Seri Ong Ka Ting describe the Budget as caring and looking after the needs of ordinary folks, especially the poor when money is wasted from corruption and mismanagement. Further Ka Ting must explain why he supports the extension of corporate social responsibility (CSR) to compel public limited companies (PLCs) to disclose their employment composition by race and gender.  

Clearly,  Abdullah is still focusing on ethnicity over merit and preferential treatments over competitiveness as can be shown by other measures that is exclusive and not inclusive:-

* RM400 million initial fund has been earmarked by Pelaburan Hartanah Bumiputera Bhd to increase Bumiputera property investment in Iskandar Development Region (IDR); and

* A RM7 billion fund will be channelled by EPF to be managed by Islamic fund management companies.

Why are non-bumi contractors still not allowed to tender for government procurement and instead public-listed companies required to disclose the ethnicity of employment

Further Ong must explain how Budget 2008 spur economic growth, improve the delivery system and strengthen the nation’s competitiveness when the Prime Minister has failed to deliver his promise made during the recent MCA General Assembly that he will open up government procurement to non-bumi contractors sharing a joint-venture with bumi contractors? Works Minister Datuk Samy Vellu revealed in May 2007 that 96% of these projects are given to bumis. 

We are still waiting for Abdullah to lift the ban on non-bumi contractors so that RM 46.8 billion of infrastructure works under the Ninth Malaysian Plan(9MP) is available to all. The miserable RM 1.8 billion or 4% over 5 years given to non-bumis or is far below the 35% non-bumi population in the country and demonstrates how the NEP continues to exclude and divide Malaysians based on race. Abdullah will only convince Malaysians that his policies will be fair and equitable to all communities by ending the New Economic Policy(NEP) and open up government procurement to all Malaysian contractors. 

What is the point of spending RM 12 billion for the Higher Education Strategic Plan to produce highly knowledgeable and first-class human capital as well as develop world-class higher education institutions when the basic condition of merit is not complied. No non-bumi Vice-Chancellor has been appointed to any of the 17 public universities despite their academic excellence and leadership ability. 

DAP proposes a “Malaysia First Bonus” of RM 1,200 a year to Malaysians (a family would receive RM 2,400 regardless whether the spouse is working) with income not more than RM3,000 per month. For the elderly above 60, they will receive an ADDITIONAL “Senior Malaysian First Bonus” of RM1,000/-. These bonuses will only cost RM9.3 billion, far less than the RM  76.3 billion in gross profits earned by Petronas last year. 

DAP also proposes that the government legislates the use of oil and gas revenue to ensure that 50% of oil and gas revenues be invested in human capital and research and development, while another 25% be used to strengthen the social security for Malaysians who are in need. This will help to build the necessary economic capacity for Malaysia, to ensure that the increases in productivity and innovation will more than compensate for the expected decline in oil revenues. 

(12/9/2007)


* Lim Guan Eng, Secretary-General of DAP

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