Nobody Trusts A Phantom Government

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AFTER spending over RM600 billion and 'burning' some unnecessarily, PM Muhyiddin Yassin finally said 'we don't have much money left', and one quick option that flashed his mind is for civil servants agreeing to a pay cut to help out the government!
What? Brilliant for a day but remain stupid for the rest of his tenure as a premier. Merely a year after becoming the No.1 and having spent that huge amount without proper calculation, I believe he will go into history as a leader who turns Malaysia a destitute nation, joining the class or Chad and Burkina Faso.
When he became the prime minister, yes (we admit it) the Covid-19 was building up. He was nice enough to provide the stimulus package to people who were affected by the pandemic, especially those who lost jobs and incomes, sectors badly affected and purchasing the vaccine for us. It was really good, and his ratings went up.
However, towards the second half of his administration, his true colors were exposed. To stay in power - since he was not elected through a national poll and his Cabinet is full of self-vested interest political MPs - he was seen as buying the people's heart in order for them to close an eye on his act of political betrayal, graft and unethical deeds.
It worsen when the shopping spree over some Members of Parliament began, seen by many as the dirtiest political conduct ever in the country. The general election which was supposed to be called during the first quarter of 2021 ended in despair as analysts predicted that he rather enjoys his seat until 2023 to the expense of the country and people.
The emergency proclamation was also to give him full power to flex his muscle on his political enemies outside and inside the government. Saddam Hussein and Muammar Gaddafi used to exercise that during the 80s and early 90s. And so had Ferdinand Marcos.
Let's not detail it out. We already know, the whole world knows it too. And we are not sure whether the ministers and GLCs appointees fall under the civil servant category as well. But I am sure that the amount of money spent on the people equates to the sum spent for his politics.
You can spend but as the old saying goes, 'if you know how to spend a dollar, you must know how to earn two dollar'. However, looks like its the other way round for this 'phantom government'. They are likely to spend the last ringgit before handing it over to the next government to bear the headache. And what about the RM54 billion they borrowed in a year?
We are in a very pathetic situation. Blame it on the pandemic for the slowing down of FDI inflows and other economic activities but you better explain why they were big capital flight when some big multinationals sought 'investment refuge' in our neighboring countries? Indonesia, Vietnam, Thailand and even Cambodia are currently becoming major hubs for foreign investments (including those who abandoned us).
And yet, we boast about our tax and investment regime!
Investment sounds like an indisputably good thing. No politician gets on his soapbox without referring to 'investment in education and infrastructure'. Businesses promise more investment and jobs if local conditions improve, or to leave the country should they decline.
Now, it’s become a campaign issue on the social media. Lamenting that the country is headed for deterioration, analysts are flirting with the idea of a minimum rate of public investment, as if increasing investment were an end in itself.
I am not saying all bad about our economic management, with regard to investment. I somehow have one pathological weakness – a gaping investment gap. This fixation on investment is misleading. What value does a new kindergarten have without good staff? What is the point in building a new factory on our soil when it’s more cost-effective to supply sales markets from abroad?
We keep on painting a glossy picture about the national economy, plus the boosted report by international ratings agencies. These things are a nuisance. They impede growth and leads to complacency.
Increased investment is macro-economically desirable. It would reduce the current account surplus and increase growth potential. But the public sector represents only around 10 percent of investment. Most must come from the private sector. In a market economy, private investment decisions are aimed at boosting company earnings. Trade balances and productive potential are irrelevant.
Are we nuts to salvage the government's purse by implementing pay cuts on the 1.6 million civil servants?
Firstly, calculate for how many years they have to contribute until the government is economically 'rich' again. Along that duration, could probably end up as a bankrupt country.
Secondly, admit the fact that only reason why the international community and investors are taking us out of their diplomatic and investment maps - we are a PHANTOM GOVERNMENT!

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