Malaysia Budget 2008, lackluster and nobrainer

Posted On 07/09/2007

Filed under Food for thoughts

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As computer cannot make the children smarter and will not make the street safer.

Looking at the “RM 6 billions plan to modernise PDRM” will score a F in 1st world country.

In line with this, the capacity and efficiency of PDRM will be enhanced with the recruitment of 60,000 new personnel over the next five years. Investigating officers and assistant investigating officers will be supplied with an additional 2,000 national cars and 1,600 laptops. In addition, 1,900 motorcycles will be provided to increase police presence. PDRM will also set up a Mobile Forensic Unit in each police contingent.

As usual, what I see is another episode of Malaysia Boleh Quantity+ Hardware against human capital + professionalism.

Laptop and car can NEVER improve the now-go-south PDRM. Increase of new personnel only mean one things : more amateur PDRM personnel will infest the country. So call mobile forensic is nothing but similar to the multiple-millions ACA institute, anyone case for quantitative call.

Let me see, did the government mentioned ANY of the following to improve PDRM professionalism?

  • Establish independent assessment body to ensure PDRM personnel understand of law
  • Isolate PDRM from the influence of politics
  • Establish a school to restrain UNFIT PDRM personnel, whether physically or mentally.
  • Establish body to revamp the AGING PDRM way of doing works, red tapes, etc.
  • Establish scheme to eradicate corruption problem, especially the traffics unit
  • Establish a professional road accident forensic team, since Malaysia has the highest road accident ratio in the world.

RM 6 billions is a lot of money to improve quality of human capital inside PDRM. However, at the end, the money will be burned by corruption within the body itself.

While the new monthly housing loan withdrawal scheme from EPF are actually long awaited. It is a system that Singapore that run for many years. EPF has delay a proven plan, which I think nothing to be happy about.

Without the scheme, sitting on billions ringgits of contribution money, it is a difficult task for EPF to find a way to make a good return. No Malaysia banks can give EPF a good rates on fixed deposit. For example, if EPF deposit RM 1 billions, even banks like Maybank will have big problem to find business to cover 1% interest fees (RM100 millions). So it is no surprise that EPF are always a vacuum cleaner for all sort of local bonds and stocks. Unlike the 60’s, the inflation of the money is going for a faster pace. EPF money and dividends returns no longer relevant for retirement. Follow the inflation rates, a EPF contributors with RM200,000 in year 2020, can not pay 10 years of living fees when he reach his 55 retirement age. In year 2020, a plate of mix rice might easily cost RM15. Just imagine that.

It is rather funny while the money are inflate everyday, EPF has delay the plan to let the contributor to withdraw the money to reduce the bank interest. In short, EPF are being the banker best friend for i) not release the funds to help the contributors, ii) lending CHEAP to the bankers.

In short, the monthly housing loan withdrawal scheme is a relief to both EPF and the contributors. In addition, it will make the local banker more competitive and creative, since bankers can no longer take a free ride on EPF previous absurdity on the housing loan policy.


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