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Monday 4 November 2013

Malaysia; Poor Performance in Upholding Human Rights


The Malaysian government has always been a vocal voice in international arena, slamming foreign governments for their failures in championing human rights. Malaysia has also stood tall amongst its other “peers” in advocating for a non-aligned, peaceful and moderate world for all.

Malaysia has had its firm stand against the encroachment of the Palestinian territory by the Israeli forces, the United States’ military intervention in Afghanistan and Iraq, under the premise of “War on Terror” and even against the Apartheid regime of South Africa prior to the blacks’ disenfranchisement in 1994. Why, the articulate former Prime Minister of Malaysia, Tun Dr. Mahathir Mohamad even initiated an international tribunal to prosecute Tony Blair and George Bush Jr. for war crimes.

This is Malaysia; the land of liberty and equality.

But, then again, a bigger question arises, is everything in Malaysia as rosy as said?

11. The ultimate doctrine of the nation, the Federal Constitution upholds the rights of individuals in freedom of religion as enshrined in Part II, Article 11. However, in reality, this freedom of religion in Malaysia can end up being a contentious issue.  One major factor for such arguments is the recent Court of Appeal’s judgement, prohibiting the usage of the term “Allah” by a weekly called The Herald Catholics. Such judgement has created rift between the Muslims and non-Muslims communities in Malaysia, with many public figures claiming exclusiveness of such term, only for the faithful of Islam. However, the recent press statement of the Honourable Prime Minister, indicating that non-Muslims can continue to use the term and the judgement shall be confined only to The Herald, has created confusion over this contradicting situations.

22. As a further matter, Hindu temples demolition in Malaysia has caused disappointment within the Hindu community of Malaysia. To elaborate, many Hindu temples were built in Malaysia and as the famous Emeritus Professor Khoo Kay Kim puts it, there are more than 16,000 Hindu temples in this country. However, many of these religious buildings were built in rubber estates and even before independence. In the long-run, many of these temples are not registered with the government and are deemed illegal. With more and more developments taking centre stage in Malaysia now, many of these temples fall in the intended development zone and later on, face demolition threats from the developers. The recent incident at the Muniswarar Kaliyaman temple in P.Ramlee Street, Kuala Lumpur where part of the temple structure was demolished by the Kuala Lumpur City Council, was seen as infringement of freedom of religion. Even the Federal Territories Minister, Datuk Seri Tengku Adnan has defended the act, saying the demolition is valid and is done legally as ordered by the court. But, he has failed to produce a copy of the order.

However, earlier prior to the demolition, a court has declared that any attempt of demolition of the Muniswarar temple would be considered void and illegal. And a copy of this judgement has been produced by R. Sivarasa, the MP for Subang. This clearly contradicts with the statement given by the Minister and shows that, the act of demolition by Kuala Lumpur City Council is illegal and against the law.

Not only that, the way of the temple structure was demolished was considered inconsiderate and rude by the masses. This is due to the council workers entering the temple vicinity, wearing boots and the statues were removed not by the priests but by the Muslim council workers. This also contradicts Hinduism’s practice as any deity statues removal needs to be done accordingly through a ritual. Below is a picture of city council workers in the temple compound wearing boots-


Religious buildings should be respected by everyone, even if it means the authorities. Any rude intrusion as shown by the council workers should be condemned and those responsible should be made to apologise. However, sadly up to this very moment, no actions have been taken, just like what happened to the rest of the temples that were demolished.

33.  Freedom of religion does not only limit to different religions but also to different denominations within a religion. In Malaysia, faithful of Islam constitutes the majority population amongst the 28.5 million citizens of Malaysia. Almost all Muslims in Malaysia are called the Sunni Muslims. Yet, there are other denominations such as Shia (a group of Muslims who consider Saidina Ali bin Abu Talib as the last prophet contrary to the belief of Sunni Muslims, where Prophet Muhammad is considered as the last prophet of Islam). Social activists and several politicians have advocated against the persecution of Shia Muslims in Malaysia.

Minister in Prime Minister’s Department, Dato' Seri Jamil Khir bin Baharom who is in charge of Islamic affairs, has previously said that Shia Muslims can continue to practise their belief in Malaysia without any persecution from the government, provided that the teachings of this sect are not spread. However, this clearly contradicts with a 1996 edict by the National Fatwa Council which ruled that Shia is a deviant sect and banned its practice. Not only that, Datuk Seri Abdul Rahim, the secretary-general of the Home Ministry announced the growth of the minority Shia population, along with government plans to root out the movement.

The government’s stand in this issue remains ambiguous and confusing. However, taking into consideration the need to honour the right of an individual to practice his or her belief, persecution of the Shia movement should be brought to a rigid full stop. For this, roundtable discussions between the representative of the Sunni and Shia Muslims should be organised to attain a win-win situation. The government needs to understand that forcing an individual to accept a belief that he or she does not subscribe will prove to be futile.

44. Malaysia’s treatment of the registered asylum seekers or refugees from countries in the midst of conflict has also been debated for quite some time. The Malaysian Government is yet to ratify the 1951 Refugee Convention or its 1967 Protocol under United Nations and has taken less effort to provide welfare to these people seeking refuge. According to official report, there are around 115,819 refugees in Malaysia registered under the United Nations’ High Commissioner for Refugees (UNHCR). And the vast majority of them are from Myanmar, which has suffered from decades of brutal military administration.

Although these registered asylum seekers are protected from the tensions in their homeland, they are prohibited from working or getting education in Malaysia. Currently, many refugees are sustaining their lives in Malaysia by doing odd jobs. Children of the refugees have been denied the right for education, limiting them only for informal education.

Asylum seekers are different than illegal foreign immigrants as they are here to seek life protection and not to exploit our economic opportunity. They are allowed to enter Malaysia’s in the interest of humanity. The Malaysian Government needs to ratify the Refugee Convention and establish a proper framework to provide a good protection for the refugees. Once they are registered under UNHCR, they ought to be allowed to enter the workforce and to receive education.

55.  Other than that, the government’s inaction against its own politicians and affiliates who produce seditious statements, have showcased the government’s biasness. Anti-race statements made by former Chief Minister of Melaka, Datuk Seri Mohd Ali Rustam, current Menteri Besar of Kedah, Dato’ Mukhriz Mahathir and the President of PERKASA (a Malay supremacist group), Dato’ Ibrahim Ali who threatened the Holy Bible, fell on deaf ears and were never taken any actions upon. Why, even the current Urban Wellbeing, Housing and Local Government Minister, Dato’ Abdul Rahman Dahlan has defended Ibrahim Ali’s despicable statement!

Contrary to this, many leaders in the opposition pact, Pakatan Rakyat has been brought to justice for their so-called “seditious statements”. These include Batu Member of Parliament, Tian Chua, PAS member Shafor and activists Hariz Fathillah Mohamed Ibrahim, Safwan Anang and Hishamuddin Rais. It is not my intention to defend these Pakatan Rakyat representatives but, if these people can be prosecuted for their statements, BN’s politicians who uttered anti-racial statement should also be brought to court. The Sedition Act is not to be used for political expediency, but for national harmony.

66.  Malaysia’s affirmative action which favours the Bumiputera group can also be seen as a threat to human rights. Each and every citizens of Malaysia is entitled to equal rights in a country, regardless of his or her skin complexion or ethnicity. For me, the affirmative action practised by the Barisan Nasional Government in the past four decades has left the elites to reap the most benefits. This is evident through the stark disparity between the rich and the poor within the Bumiputera group. The intra-race Gini coefficient study in 2009 has proved that Gini coefficient for the Bumiputera group is 0.44 and is higher compared to the Chinese and Indian communities.

To the uninitiated, the Gini index ranges from 0 till 1. The closer the index is to 1, the higher the income disparity between the rich and the poor. This particular coefficient has clearly indicated that the Bumiputera group in Malaysia is plagued by the “rich get richer, poor get poorer” syndrome despite the so-called “success” of the New Economic Policy.

What Malaysia needs now is an Equal Rights Commission which was advocated by the National Economic Actions Council (NEAC). Malaysians should be left to stand on an equal and just economy for the betterment of the nation.

However, whenever talks regarding equal rights and affirmative action arise, these are blocked by political interference. In 2008, when the Bar Council has suggested for a national forum on social contract, the then Prime Minister, Tun Abdullah Badawi has objected the need for such a forum or discussion. This was again reiterated by a royal statement from the Conference of Rulers.

Should Malaysia aspire to be one of the respected developed countries internationally, all Malaysians should be seen equal and any political or economic marginalisation should be ultimately eradicated.

77. In 2013, Malaysia continued its downward slide in the Reporters Sans Frontières (RSF)’s press freedom index – dropping to 145th position out of 179 countries – Malaysia’s lowest ranking ever yet. In 2007, Malaysia was placed at 124th. Even worse, in 2011, Malaysia was listed under the “Countries under Surveillance” list for its suppression of Internet freedom amongst the Malaysian citizens. This clearly indicates the limitations of freedom of information in Malaysia. Mainstream mass media has for long been seen as pro-ruling government and partisan.

This has to change, as soon as possible. A mature and intellectual Malaysian community can only be realised if free and neutral information is allowed to “roam” in Malaysia’s atmosphere.

88.Detention without trial is an example of infringement of human liberty. As the conventional wisdom goes, “a man is innocent until he is proven otherwise”. Malaysia gained international plaudits when the Prime Minister announced the abolishment of the draconian Internal Security Act (ISA) which was passed in 1960, with the intention only to prosecute the communists, back in the old days.

However, the plaudits have now gone to waste with the amendment to the Crime Prevention Act 1959 being passed by the Parliament. This amendment allows for detention without trial up to two years, exactly like ISA. The public realises that the organised crime rate in Malaysia has increased in recent years, especially after the abolishment of the Emergency Ordinance (EO) and ISA in 2011. But, this doesn’t necessarily means that the re-introduction of the detention without trial is justified.

Supposedly, the police force should be able to reinforce their intelligence expertise and enforcement strength, rather than just to nab individuals and lock them up. The Royal Malaysian Police force needs a major overhaul in dealing with such organised crimes and again, detention without trial shall never be the answer.

Conclusion

The Human Rights Council’s (HRC) Universal Periodic Review (UPR) for was done on Oct 24, four years after the first in 2009. United Nations member countries urged Malaysia to abolish capital punishment, repeal oppressive laws, and respect the rights of Orang Asli and individual religious practices.

Malaysia is in a serious need to ratify the Convention on Elimination of All Forms of Racial Discrimination as racial problems are still on-going despite the multi-racial community living together for more than half a century. Besides, Human Rights Commission of Malaysia or SUHAKAM’s annual reports need to be debated in Parliament to scrutinise the human rights’ plaguing problem in Malaysia. It is troubling that despite its establishment in 1999 and SUHAKAM’s success in sending its annual reports to the Parliament, they were never debated. The time has come for the government to pay heed to the recommendations of the SUHAKAM reports for a better administration that upholds human liberty.

P/S: It’s never too late for anything, but political will matters!


Monday 21 October 2013

"Allah" Term Fiasco & Why Malaysia Is Not An Islamic State


October 14th, 2013 will be one of the important dates many Malaysians would remember. The Court of Appeal has meted out a landmark decision, prohibiting a weekly named The Herald from using the word “Allah”, which refers to the Muslim God. This judgement, which I believe is endemic to only Malaysia, provokes many to think whether freedom of practising religion really exists.

Flying back in time, the whole “Allah” fiasco erupted in 2007 when the weekly in East Malaysia, was found using the term “Allah” in dictating the Christians’ messiah, Jesus Christ. This was followed by a ban by the Home Ministry which was then led by Tan Sri Hamid Albar, to prevent non-Muslims from continuously using the term. The main concern of such decision by the ministry was to pre-empt any confusion amongst Malaysian Muslims and also to prevent any effort of proselytising the Muslims by any parties, by manipulating the situation.

This however, was met by public furore, especially from the Christian Federation of Malaysia (CFM). The respective groups demanded that Christians in East Malaysia be allowed to use “Allah” in the Malay-version Holy Bible, the Al-Kitab. Titular Roman Catholic Archbishop of Kuala Lumpur later filed a judicial review at the High Court in 2009 on the banning, resulting in a judgement that annulled the Minister’s previous decision.

Later on, on January 5th 2010, the Home Ministry and the Government of Malaysia filed an appeal against the High Court ruling at the Court of Appeal.

On 2nd April 2011, the Government under the Najib leadership announced a Ten Point Solution to address the Bible issue and other related issues.

The Ten Point Solution is as follows:

1. Bibles in all languages can be imported into the country, including Bahasa Malaysia/Indonesia.

2. These Bibles can also be printed locally in Peninsula Malaysia, Sabah and Sarawak. This is a new development which should be welcome by the Christian groups.

3. Bibles in indigenous languages of Sabah and Sarawak such as Iban, Kadazan-Dusun and Lun Bawang can also be printed locally and imported.

4. For Sabah and Sarawak, in recognition of the large Christian community in these states, there are no conditions attached to the importation and local printing of the Bibles in all languages, including Bahasa Malaysia/ Indonesia and indigenous languages. There is no requirement for any stamp or serial number.

5. Taking into account the interest of the larger Muslim community, for Peninsula Malaysia, Bibles in Bahasa Malaysia/Indonesia, imported or printed, must have the words “Christian Publication” and the cross sign printed on the front covers.

6. In the spirit of 1Malaysia and recognising that many people travel between Sabah and Sarawak and Peninsula Malaysia, there should be no prohibitions and restrictions for people who bring along their bibles and Christian materials on such travel.

7. A directive on the Bible has been issued by the Ketua Setiausaha (KSU) of the Home Ministry to ensure proper implementation of this cabinet decision. Failure to comply will subject the officers to disciplinary action under the General Orders. A comprehensive briefing by top officials, including the Attorney General (AG), will be given to all relevant civil servants to ensure good understanding and proper implementation of the directive.

8. For the impounded Bibles in Kuching, Gideon, the importer can collect all the 30,000 Bibles free of charge. We undertake to ensure the parties involved are reimbursed. The same offer remains available for the importer of the 5,100 Bibles in Port Kiang, which have already been collected by the Bible Society Malaysia (BSM) last week.

9. Beyond the Bible issue, the Government wishes to reiterate its commitment to work with the Christian groups and all the different religious groups in order to address interreligious issues and work towards the fulfilment of all religious aspirations in accordance with the constitution, taking into account the other relevant laws of the country. In order to bring urgency to this work, in the capacity as the Prime Minister, the representatives of the Christian Federation of Malaysia (CFM) will be met soon to discuss the way forward.

10. The Christian Ministers in the cabinet will meet on a regular basis with representatives of the various Christian groups in order to discuss their issues and work with the relevant Ministries and myself in order to resolve them. As the leader of this country, the Prime Minister wishes to reiterate the Government’s commitment in solving any religious issues in this country. There is a need to manage polarities that exist in our society to achieve peace and harmony.

It has to be noted that this Ten-Point Solution was offered barely few days before the Sarawak State Election in April 2011. Many quarters denounced the offer, claiming it as an election tactic to woo the vast Christian voters in Sarawak. However, some other parties have accepted the Ten-Point Solution, as a way forward.

And on 14th October, 2013, the Court of Appeal’s three jurists’ bench quashed the previous High Court ruling, indicating the ban on the Herald from using the sacred “Allah” term to stay. Having read the final written judgements by all three judges, it can be said that the Herald is prohibited from using the word “Allah” in its publications but it was never mentioned anywhere that non-Muslims should also be prohibited from using the term.

Recent press statements from the vocal Home Minister, Datuk Seri Zahid Hamidi and the Prime Minister himself have indicated that non-Muslims can continue to use the “Allah” term and only the Herald has been banned from utilising it.

Thus, the arising situations have created never-ending confusions. If the Malay-version Holy Bible which uses “Allah” to dictate Jesus Christ is allowed and is legit, then why is the Herald, a weekly for the Roman Catholics in East Malaysia is banned? Why is this disparity?

Everyone, may it be Muslims or non-Muslims, should understand that no one should or can be forced to refrain from using “Allah”. Even in Sikhism, the term “Allah” is mentioned 46 times in its much-revered holy scripture, “Guru Granth Sahib”. Arabs, Muslims and non-Muslims alike, have been using the term for centuries. And the case is the same for the East Malaysia’s Christians. Citizens in Selangor, a state in Malaysia, have to say the word “Allah” each and every time the state anthem is sung as the line goes “Allah lanjutkan usia Tuanku” which literally means, Allah lengthens the life of His Majesty.

Clearly, the debate on whether the term “Allah” is exclusive to only Muslims will be never-ending. But, bearing in mind the need to provide the freedom of practising a religion, such issue should be avoided. However, having said that, non-Muslims should never misuse the situation to confuse or proselytise the faithful of Islam.

Is Malaysia an Islamic country?

I’ve never wanted to argue on Malaysia’s status as a secular or an Islamic state, hitherto. However, seeing several public figures using this case as their point to defend the prohibition of “Allah” term, I felt compelled to voice my stand.

Malaysia is a secular state, NOT an Islamic state. But, definitely, never take my words for it. There are reasons why Malaysia can never be said as an Islamic country.

To the uninitiated, the role of proposing a draft of the Federal Constitution was carried out by the Reid Commission, which serves under Her Majesty, the Queen of Britain. Originally, Article 3(1) which elaborates that Islam is the religion of the Federation was not mentioned in the proposed draft.

However, the insertion of Article 3(1) came about after objections, negotiations, discussions and consensus between all the stake-holders, including from various racial and religious groups. It came about by the White Paper known as the Federation of Malaya Constitutional Proposals 1957.  Paragraph 57 of the White Paper reads as follows:-

57. There   has   been   included   in   the   proposed   Federal Constitution a declaration that Islam is the religion of the Federation. This will in no way affect the present position of the Federation as a secular State, and every person will have the right to profess and practice his own religion and the right to propagate his religion, though this last right is subjected to any restrictions imposed by State law relating to the propagation of any religious doctrine or belief among persons professing the Muslim religion.

This particular White Paper has again been noted in the grounds of judgement by Datuk Seri Mohamed Apandi Ali, one of the jurists in the appeal hearing of the “Allah” term at the Court of Appeal.

The role of Islam was meant to be ceremonial as in the coronation of the Yang di-Pertuan Agong and others. Our founding fathers, most particularly, Tunku Abdul Rahman has never mentioned about Malaysia being an Islamic state in his speeches or even in during his tenure as the first prime Minister.

Then, how did this started to happen?

The Pan-Islamic Party of Malaysia (PAS) has always been advocating for the formation of an Islamic state if the party is elected to govern the Federal Government. This political party is largely seen as promoting the values of Islam, as a whole by many quarters.

In 1999, the Barisan Nasional government under the helm of Tun Dr. Mahathir Mohamad suffered severe blow in the general election which saw the State of Terengganu falling in the hands of the PAS state government. The reason highlighted by many analysts has indicated that many Malay Muslims in Malaysia, particularly in the State of Terengganu, are seeing PAS as the true beholder of Islamic values rather than Barisan Nasional, the ruling Federal Government.

Thus, to recapture the attention of the Malay Muslim electors, Tun Dr. Mahathir in 2001, has “declared” Malaysia to be an Islamic state to show Barisan Nasional’s determination in upholding the Islamic virtues. This, however, is illegitimate as it contradicts with the Federation of Malaya Constitutional Proposals 1957 which is based on consensus amongst various stakeholders.

Having said this, I wish to reiterate that Malaysia is a secular state and should remain so, forever. Making Malaysia an Islamic state due to the concern that Muslims form the predominant population here, simply does not hold water.

P/S: Only you and I need religions, the country needs none.






Thursday 10 October 2013

Goods & Services Tax (GST); Why Malaysia Needs It


This article is specifically written to address the recent statement by Malaysia’s Leader of Opposition, Datuk Seri Anwar Ibrahim that the opposition pact, Pakatan Rakyat may resort to protest if a new taxation regime, Goods and Services Tax (GST) is to be introduced in Budget 2014, later this month.

This new form of tax in Malaysia has drawn much attention from many quarters, particularly experts and politicians regarding the pros and cons that may be contributed if this tax is to be implemented. The idea of GST in Malaysia has emerged even in 1990s, but discussions and public outcry have put off the implementation until this very moment.

Even in Japan recently, public outcry was evident when its hawkish Prime Minister, Shinzo Abe announced that the consumption tax will be revised from 5% to 8% as part of his “Abenomics”; a slew of measures to help Japan recover from economic slowdown and deflation.

 GST has been touted by many as one of the best ways to sustain the nation’s financial stability. But then again, what is GST?

GST or also known as value-added tax (VAT) taxes on consumption. This means, the more you consume, the more you will have to pay. GST can be classified under the cluster of indirect taxes and if it is to be implemented in Malaysia, the jurisdiction to collect this tax will be under the Royal Customs Department. Globally, around 146 nations are noted for implementing GST as one of the tax regimes. The percentage of GST varies amongst countries, from as little as 5% to as high as 50%.

Why is GST important?

1    (1)    The non-inclusive taxation system

Malaysia’s current personal income tax needs more scrutiny in order to enhance its efficiency. Through the de facto taxation system, only 1.7 million Malaysians out of the 13 million people workforce are registered to pay the personal income tax. Approximately, only around 1 million Malaysians, however, are actually paying the tax as the rest are excluded through various tax deductions. This essentially means that a miniscule 3.51% of the entire population is contributing to income tax which plays a major role in raising the direct taxes contribution. This clearly indicates that, the current tax regime is simply narrow-based and unsustainable in the long run. Taxes play a significant role in providing financial means for the nation’s development.

Thus, apart from direct tax, indirect taxes collections have also to be boosted for better revenue generation. Statistics has shown that indirect taxes contribution has fallen in 2011 (17.6%) and further in 2012 (17.2%). This indicates the pressing need for GST implementation. Moreover, Malaysia’s highest individual income tax bracket of 26% compared to the highest tax bracket in the corporate tax rate of 25 % compels the spark of debates on the efficacy of our tax regime. Many pushes for reduction in personal income tax to increase the population’s disposable income. This is understandable and can be achieved if GST is implemented. The government will be forced to reduce the personal income tax rate as high individual income tax and GST, together will be financial burden on the citizens.

2    (2)    Over-dependence on natural resources

Contributions to the government’s coffer have largely depended on natural resources-based industries, namely the timber and oil and gas (O&G) extraction sectors. Especially, after the inception of PETRONAS in 1974, the state-owned petroleum company, the national revenue has been largely derived from the profits of this establishment (which is also famously noted as one of the New Seven Sisters). Official statistics have shown that around 40% of annual PETRONAS’s revenue is used for the nation’s expenditures. Such high dependence on hydro-carbon receipts cannot be justified and the revenue should be put to a better use. 

Taking Scandinavian countries like Norway and also the world’s second biggest oil producer, the Saudi Arabia as examples, a huge percentage of their oil revenue is channelled into their sovereign wealth funds (SWFs). These funds are later used to invest domestically and internationally to generate more profit. As a result, Norway’s and Saudi Arabia’s sovereign wealth funds are amongst the biggest in the world. Technically, huge proportion of oil revenue is funnelled into these SWFs to establish financial backing for future generations. It is a common knowledge that these now-bountiful resources are doomed for depletion. Natural resources should not only be limited for the current generation’s use but also for the upcoming ones’.

As for Malaysia, there is a fund called “Kumpulan Wang Amanah Negara” in which small proportions of oil revenue is channelled into. Hitherto, PETRONAS has only contributed around 100 million per year compared to its tens of billions of profit. It is only starting from two years back, PETRONAS has voluntarily agreed to increase its contribution to RM 1billion per annum. Yet, by comparing this miniscule amount to its mass profit, definitely more proportion can and should be contributed to the fund. If this is made possible, Malaysia’s SWF could emerge as one of the world’s biggest fund and will be ultimately beneficial in long term.

3    (3)    Budget deficit

Malaysia has been registering budget deficits for the past 16 consecutive years, starting from the 1997 East Asian financial crisis. The nation’s expenditure has always been higher than its revenue for this duration and has caused the government to borrow from many sources. This has translated into high amount of national debt-to-GDP which currently stands around 53%, nearing the minimum threshold of 55%. If the national debt-to-GDP hikes above the threshold, it will send alarming warning to many quarters, regarding Malaysia’s risk in controlling debt. Such situation might even cause the Big Three ratings agencies to reduce Malaysia’s investment ratings. This later will force reduction in foreign investment.

Thus, in order to combat budget deficit which currently stands at 4.5%, the government needs to generate more revenue and the introduction of GST is very much timely. GST is capable in generating more revenue to the government’s coffer and this has been proven by many economists, both domestically and internationally.

How GST functions?

            I opine, to solve this state of problem, the Goods and Services Tax (GST) has to be implemented. Currently, Malaysia is in use of another tax regime, Sales and Services Tax (SST). To the uninitiated, there are clear distinctions between GST and SST.

For example, Sales and Services Tax (SST) are taxed on every stage of sale. Let’s say, in the case of a bread loaf (just an example as Malaysia does not produce wheat, the raw material for bread), the wheat producer, the bakery, the bread wholesaler and lastly, the consumer will be paying the sales tax.

However, in GST, only the end-user; the consumer will be the one paying the tax.

Then, wouldn’t this mean the government’s revenue will be reduced if only the end-user is paying the tax? No! This is because GST is broad-based and will cover almost all goods except for zero-rated goods (essential items such as rice, sugar, etc.). Thus, it paves way for more revenue generation.

            With the implementation of GST, more Malaysians are entitled to pay taxes indirectly. This way of taxation is just and capable of eliminating “free-rider” mentality amongst the Malaysian masses. In comparison with the current system, GST paves way for a broad-based taxation system. However, due to misconceptions and rumour-mongering amongst the uninitiated, the disapprovals for GST implementation have grown louder. Thus, an independent laboratory analysing on the impacts of GST should be established, encompassing local and foreign experts for broader views and opinions.

Through this laboratory, the best percentage of GST should be decided together with its impact on the economy as well as the consumers. It should be noted that while there are countries imposing up to 50% of GST, nations like Canada only imposes 5%. A well desired and accepted rate should be on average if compared with our current sales tax of 10% and service tax of 6%. And at the same time, the rate should not burn a hole in the consumers’ pockets. Keeping that in check, essential items should be exempted to protect the lower-income group.

Only after well-preparation and research into the manners of implementation, the public should be educated through various feasible and friendly means like social media, on the growing necessity of GST. After all, the longevity and success of this tax regime depends on the public acceptance.

            Hypothetically, it is becoming more apparent that our taxation system is in need of a revamp. A transition to the Goods and Services Tax will boost the national revenue, better if this attempt is coupled with continuous rationalisation of subsidies and improving leakages in the government’s finance due to corruption and red-tape. A well-planned roll-out of GST shall project better revenue-generation in the government’s financial “assessment card”.

P/S: It has to be noted GST can also cause rise in goods’ prices. But, whether this will cause severe inflation or otherwise, largely depends on the Government’s manner of implementation. 



Monday 7 October 2013

The United States and the Government Shutdown

Simply mind-boggling! The world’s biggest economic juggernaut is now, in shutdown mode!

Starting on 1st of October 2013, the Obama administration has been forced to announce a government shutdown until a budget is hopefully approved by the Congress, sooner or later. Around 800,000 federal government employees were forced to go on unpaid holiday until a date to be announced later. Most government offices and departments, including tourist hotspots were shut following the budget impasse.

How did it start?

Government shutdown is not something new in the United States. 17 years ago, during the Clinton administration, the government was forced to shut its operations down as the result of a gridlock amongst the Congressmen in approving the budget. The United States’ fiscal year ends on 30th of September every year and annual budget for the upcoming fiscal term has to be sanctioned by the Congress before it. In 1996, disagreement on the need to further extend the duration of Medicare, a federal government-funded health programme for the elderly and disabled citizens, brought the nation to experience entire government shutdown except for certain critical departments such as the police force.

Now, 17 years later, in the presidency of America’s first Afro-American president, history has repeated itself. The Republicans demand for the Medicare or also dubbed as “Obamacare” to be delayed by a year for the budget to be approved. But, the White House has been firm that any action seeking to delay Obamacare will be vetoed by the President himself.

The structure of the Congress itself has made any concrete decision-making on the new budget gruelling. The lower chamber of the Congress (House of Representatives) is controlled by majority Republicans while the upper chamber (House of Senate) is dominated by the Democrats. Unwillingness of both parties to tolerate in achieving a consensus will prove to be detrimental to the nation’s development. Until the moment this article is written, the Tea Party faction of the Grand Old Party is insistently, calling for the delaying of Medicare whilst the Democrats are seeking to lift the debt-ceiling now set at US$ 16.7 trillion.

Debt and More Debt!

Believe it or not, the United States is infamously known for its hefty debt which is now threatening its economic survival. To be precise, during the reign of George Bush Jr. (2000-2008), America has gone on a spending spree, emphasising on military spending in the invasions of Afghanistan and Iraq. With expenditures spiralling beyond national income, Washington D.C. was forced to deal with the threats of “fiscal cliff”, a term coined by Mr Ben S. Bernanke, the outgoing Federal Reserve chairman and sequester cuts all within the past two years. Even worse, all these occurred in the midst of the United States recovering from the 2007 Great Recession.

Looking at America’s debt-ceiling of US$ 16.7 trillion, it clearly indicates a worrying status quo. Rather than formulating to bring down the sky-rocketing debt, the representatives in Congress are keener in raising the debt-ceiling. To the uninitiated, “debt-ceiling” refers to the limit of amount of debt allowed to be borrowed by the US government. In previous occasions, the Congress has managed to raise the debt-ceiling higher to avoid from defaulting on its borrowings.

Actually, if worse comes to worst, the US government can print more greenbacks (US dollars) to repay its escalating debt as most international debts are dealt in the US’ currency denomination. This, however, will have other devastating effects on the economy as a whole such as depreciation of currency value and etc.

To date, it has been five days of government shutdown and still counting. The worst is expected to be experienced by October 17th, where the Congress has to ultimately decide to solve this budget deadlock, otherwise will plunge the United States into debt-default. However, from the accounts of experts and the President himself, the Congress is expected to raise the debt-ceiling -again- to “save” the Uncle Sam’s nation. GOD, when will ever these people learn?


P/S: America can no longer afford having feuding Congressmen, failing to approve a budget. Many people especially civil servants, are struggling to make ends meet, unlike the members of the Congress who still get paid regardless of government shutdown!


Monday 30 September 2013

Malaysia's Media Neutrality; A Hopeful Hope


The need for reliable and neutral information through the main sources has become more tangible and pressing in recent times. Mainstream mass media in Malaysia, may it be the electronic or print press has relayed significant news coverage on many affairs and happenings throughout time. Mainstream media has stamped its presence in Malaysian atmosphere even before the moment of independence from the British colony. Historically, several newspapers have been one of the major factors in fighting for the community’s causes and in intensifying the urge for independence.

            Ever since, mainstream mass media has evolved to an extent which can cater the need of civilians in this era of “information-craving”. With the advent of Internet, free flow of information has sent the publications and news providers competing to attract more readerships.

            But, a bigger question arises; is Malaysian mainstream mass media really serving its purpose?

            Having an array of choices in dailies to choose from, one can inevitably proclaim that it is difficult to even state whether a newspaper or a news provider is truly neutral and non-partisan. It is evident that major political parties in Malaysia own huge stakes in the news publications. For example, the United Malays National Organisation (UMNO) owns around 49.77% ownership in Utusan Malaysia and one of its key ally, the Malaysian Chinese Association (MCA) owns 42.4% equity holding in The Star Publications. Certainly, in a country which propagates human rights, anyone or even any parties should be allowed to participate in any news publication firms. But, definitely this should NOT be done at the expense of the public.

            For a better experience, one can flip through the pages of a well-known mainstream newspaper for personally. Most domestic news coverage would be revolving around the ruling government and its “successes”. Or in another scenario, the good news pertaining to the owner of the publication will be emphasised, in effort to create a good reputation all for them. Any unpleasant news or controversies regarding the owner, the political parties or the individuals-related to the owner goes under little scrutiny or hardly, not at all.
 
            This would be in direct contrast if a negative controversy relating to any leaders in the opposition front leaks out. Those issues are brought under extreme scrutiny and sometimes, are blown out of proportion. It is not my aim to tarnish the profession of a journalist or the works of a news publication, but these scenarios do happen.

            As a result, in the aftermath of Malaysia’s 13th General Election, a recent Consumer and Media View report by Nielsen, showed that, newspapers saw a drop of between 10 percent to 40 percent in readership during the second quarter of this year. This was reported by The Edge Weekly and the major reason quoted for the sales plunge was no other than…yes you guessed it right; media biasness and inclination towards to the ruling party. This actually provides clear indication to the Government that serious and prompt actions need to be taken, as soon as possible!

            Not only is that, newspapers owned by the opposition parties are much marginalised with non-necessary requisites. These include the rule of selling the newspapers i.e Harakah and Suara Keadilan, only to the party members and having a different newsstand for these newspapers. Whilst some might be supporting the move, this clearly indicates the denial of freedom of expression.

            The readers should be served with reliable and neutral news from the non-partisan view. You may own the publication but it is the people who subscribe your newspapers and updates. Never deny them the rights to obtain untainted news as they pay for it.

            So far, the Government has played significant roles in liberalising the mass media including the introduction of the Printing Presses and Publications (Amendment) Act 2012 which liberates the publication as annual permit renewal is no longer required and the Home Minister’s “absolute discretion” in granting or refusing a printing press licence. Apart from these, many other ways were introduced to regain public confidence and trust in the civil governance. Yet, there is still room for improvements.

            Malaysia has fared bad in the World Press Freedom Index 2013. Malaysia has been ranked at 145th position; a drop of 23 positions from a year earlier. Even worse, Malaysia has been ranked way below low-development countries (LDCs) like Haiti and Uganda, to name a few. Even Tunisia, which has just gone through revolution to topple its dictator, is ranked above Malaysia. Thus, this delivers alarming indication to the Malaysians that prompt and effective actions need to be deployed.

This article suggests the formation of a National Media Neutrality Commission. With the inception of this commission, mainstream media can be well-regulated to pre-empt any manipulation of media for political and personal benefits by any parties. However, this establishment should materialise only with clear commitment from the Government to push forward for media neutrality. Regulations under this proposed commission should not be misused for political expediency. The chief of the commission should be appointed through the American-type “congressional hearing” where nominated candidates should be interviewed and scrutinised by a particular committee under the Parliament comprising of members of Parliament from both sides of the political divide.

If aspirations for media neutrality materialises, no longer libellous statement from politicians and columnists will be seen. News coverage will encompass unbiased information and opinions, which posthumously create a pathway for broad-minded citizens. As a further matter, availability of media neutrality provides untainted news coverage to Malaysian population who has no connection to the Net and therefore, has no access to online social media or even online news portal. This group of the population usually has only access to the free-to-view channels. Just imagine, if even such limited sources of information are “painted” with biasness and political inclinations, the huge aspirations of building a knowledgeable community in Malaysia shall always remain a dream. At the same time, existence of such Media Neutrality Commission will discourage spreading of lies and discriminatory news coverage in online news portals, regardless to the fact whether the portals belong to the ruling party or the opposition front.

Apart from these, monopoly of a single corporate entity in the media-sphere needs to be taken into great concern. Media Prima, a media behemoth controls stake in the free-to-view channels such as TV3, 8TV, ntv7 and TV9. In addition to that, the Group also owns more than 98% equity interest in The New Straits Times Press (Malaysia) Berhad (NSTP), Malaysia’s largest publisher which publishes three national newspapers; New Straits Times, Berita Harian and Harian Metro. Media Prima also owns three radio stations; One FM, Hot FM and Fly FM.

Such domination by a single entity can possibly lead to prejudice in news coverage and information delivery. In this “information-craving” world, the media sector needs to be liberated with more players allowed to participate, creating a competitive zone which will ensure competition to deliver the best yet fair and free news coverage to the civilians.


Having said all these, this proposed commission needs to be boosted with a comprehensive media law. Yet, it has to be reminded that such statute should not carry the characteristics of a draconian law which aims to suppress freedom of expression in Malaysia. Hypothetically, the proposed National Media Neutrality Commission can successfully materialise, if and only if, clear-cut commitment from the Government is pledged for the betterment of Malaysia’s media-sphere.