Only by implementing open competitive tenders and fighting corruption can the PM prove that he is not faking his sincerity

The Prime Minister can only convince the public of his sincerity and necessity of raising RON 95 petrol prices by 20 cents to save annual subsidy costs of RM 3.3 billion by also implementing open competitive tenders and fighting corruption which would save RM 51 billion annually. Without accompanying measures that demonstrates the Federal government’s commitment against corruption, the public would easily see through such fake sincerity and counterfeit necessity to cut costs.

Why should the people, especially lower-income groups, bear the pain of paying RM3.3 billion annually in increased petrol prices if no action is taken against those political bandits who steal the nation of RM 51 billion annually? In the PR 2013 General Election Manifesto, based on the experience of fiscal responsibility and fighting corruption by the PR state governments in Penang and Selangor, at least 25% annual savings can be obtained from government procurement contracts.

The annual budget surpluses in Penang, the increase in asset reserves by 50% and the reduction of the Penang state government’s debt by a record 95% attests to the effectiveness of integrity steps ranging from open competitive tenders to public declaration of assets. With an estimated RM 201 billion in Federal government procurement contracts annually, the minimum 25% savings would amount to RM51 billion.

Why is the BN Federal government being “penny wise, pound foolish” by not focusing on the RM 51 billion in potential savings that benefits only the few rich cronies instead of forcing 28 million Malaysians to bear the pain of RM3.3 billion from the petrol price increase? Instead of responding to such simple logic, the Federal government would try to divert attention away from the inescapable conclusion by playing up racial, religious and extremist sentiments.

Such racial and extremist tactics are used successfully by BN to avoid dealing with the 4 real problems of Malaysia namely, crime, corruption, rise in indebtedness of governments and individual households as well as the declining educational standards, productivity and skills of Malaysian labour force. In Hong Kong, many investors and analysts identify these four main issues have made Malaysia less attractive or even less competitive.

Reducing crime is not that difficult if the BN Federal government is willing to let the police fight crime instead of monitoring opposition leaders. Presently only 10% of the police force are involved in crime investigation work. If that proportion is increased to 50% of the total police force, I am certain police omnipresence will be able to defeat criminals in Malaysia.

BN claims the Federal government’s debt is 54% of the GDP. However this does not include guaranteed government debt which would increase total Federal government debt to 70%. If the 70% debt to GDP ratio is high, household debt is higher at 83.5% of GDP. Such addiction to debt is symptomatic of the fiscal recklessness of borrowing to spend its way out of our country’s problems. The Federal government should show leadership by example to individual households by reducing its dependency of debt.

The Federal government has also failed to invest in the future by investing in quality education. Many high technology knowledge-intensive foreign investors lament about the poor and declining quality of our workforce at all levels, especially the poor command of English. With BN’s fixation on mediocrity instead of a culture of excellence, on political quotas rather than performance and on empty rhetoric rather than concrete action, Malaysia risks being left behind by not only high-tech foreign investors but also our best talents leaving to other countries like Hong Kong.

The Penang state government is boldly offering a model where performance is prized above political background, where concerted efforts are made to attract quality educational institutions at all levels, where a honest and competent government in partnership with both the private sector and civil sector as well as a livable city that is safe, clean, green and healthy can provide a solution to these four problems.

Lim Guan Eng Penang Chief Minister