Q U a R T E R

KDN: PP17652/01/2013 (031593) FREE — NOT FOR SALE July 2013 | Issue 2, Vol. 2

REFSA Quarterly is a newsletter to update our generous donors on our activities and achievements. Visit us at www.refsa.org QUAR TERLY THE GOVERNMENT ISSUE

Focus Paper | 20 Jan 2013 Bloated government needs cabinet and parliamentary rebalancing

By: Ong Kar Jin and Teh Chi-Chang, CFA

CartoonbyBL PM Najib has too many ministers and deputies

he Malaysian Cabinet is bloat- housemen while the Higher Edu- and consultants cast serious T ed. Prime Minister Dato‟ Sri cation Ministry blithely licenses doubts over its ability as a Perfor- Najib‟s Cabinet comprises 30 new private medical colleges. mance Management & Delivery ministers and 38 deputies. Else- Also, the allocation of ministeri- Unit. where, the entire continent of al responsibilities is bizarre. Is it Time to rebalance. The admin- Australia and the 62 million pop- any wonder that construction istration has grown corpulent ulation of the UK are adminis- standards are shoddy when the while Parliament has been left tered by Cabinets of just 22-23 financial whizz-kids at the Minis- with scraps. The lack of parlia- ministers each. Malaysia has try of Finance are put in charge of mentary resources and poor nearly as many ministers as the licensing contractors? oversight over the ministries has 33 in India who attend to a nation PEMANDU just adds more fat. allowed a culture of complacency, more than 30 times as populous This unit was set up to and perhaps even arrogance, to as ours in a land 10 times larger. „transform‟ government and Ma- develop in the government. The Our tubby Cabinet is sclerotic. It laysia. However, it merely creates number of ministers and minis- is evident that the 68 ministers more duplication, and has also tries should be streamlined and and their deputies are unable to proven to be untrustworthy and their resources allocated to more communicate effectively. For ex- unreliable. It has lied to the Ma- effective uses by Parliament. ample, the Health Ministry grap- laysian public, and massive calcu- Why and how do we trim our Cabinet? ples with the issue of too many lation errors by its expensive staff Pg 4, 5 , 6

EDITOR’S NOTE EDITORIAL TEAM ay 5, possibly the most anticipated date among Malaysians in recent years, M turned out to be an anti-climax for many. The deafening calls of ubah to Executive Editor the federal government could not lever BN from their perch in Putrajaya. Teh Chi-Chang, CFA Most Malaysians were disheartened by the results of the 13th General Elections, but many forged on in their journey for change. Ordinary Malaysians took on the herculean tasks of analyzing and breaking down the poll figures. The creative Managing Editor designed infographics to explain how BN won government with a minority of Foong Li Mei popular votes: thanks to gerrymandering and malapportionment – concepts which many had trouble spelling previously, let alone understanding. The Black Art Director 505 rally to protest the poll results saw a flood of 120,000 supporters in and around the Kelana Jaya stadium despite stormy weather. Foong Li Mei This, to REFSA, is evidence that 5 May 2013 did change Malaysia. Perhaps not to the extent that a majority of us (51 percent, to be precise) would have pre- ferred, but it did wake us up to the blatant biasness of the electoral system, un- Contributors der which the BN coalition needed only 17 percent of popular votes to win (refer Ong Kar Jin to Pg 12). It stirred Malaysians to take charge of the information we have and break it down for the masses, mobilise mass protests against alleged polling Sandra Rajoo fraud, and reach out to the rural folks to find out what drives them to still vote for Ong Kian Ming BN. In short, Malaysians are doing for themselves the things that previously only Leong Wai Kuan a small minority in non-governmental organisations (NGOs) did. REFSA welcomes this. Our aim has been to inspire constructive discourse, not to occupy it. We like to think that our work had been one of the many forces of change that led Malaysians to become aware of bulky issues such as economics If you think you are and policies – they are meant to be broken down, not ignored. too small to make a On that note, this shall be the final issue of REFSA Quarterly from this editorial team. Each of us is dialing back from our commitment here, but we are certainly difference, try sleeping continuing to to work for Malaysia via other pursuits (see REFSA Replies on Pg 3). “in a closed room with We have enjoyed traveling on this journey of change with all of you. Let us all help keep our „rojak‟ nation on the path of progress, and keep the new governments, a mosquito. federal and state, accountable. - African Proverb Selamat Jalan! ” Li Mei Managing Editor

Cutting the fat in Cabinet Infographics explain how and why we should trim the tubby Cabinet of 68 Digging into Oil and Gas ministers and deputies. T H E Pg 4 to 6 REFSA scoped out the oil and gas industry. Find out little-known facts and key issues surrounding this ETP failed, again GOVERNMENT ISSUE crucial sector. The Economic Transformation REFSA explores how our Back cover (Pg 24) Programme (ETP) Report 2012 new government came to is out - this time with bigger power, and what steps it blunders and regression! should take to keep us on Tale of the tape Pg 8 to 11 the path of progress. To help Malaysians choose, we pitched Minority rules? the star players from the opposing teams, Barisan Nasional and Pakatan BN lost the popular vote in the 13th General Elections, but won power to Rakyat against each other. rule. How did that happen? Our Pg 16 & 17 infographics illuminate. Pg 12 & 13 Differences decoded In transformation we trust Many felt that voting in the 13th General Elec- REFSA took a stand in the run-up to the 13th General tions is just choosing the lesser evil. We disa- Elections. We explain our choice. greed - read our infographics on the real differences between BN and PR. Pg 15 Pg 18 to 21

Published by: Research for Social Advancement (REFSA), 2nd Floor, Block A, Wenworth Building, Jalan Yew, Off Jalan Pudu, 55100 KL. This edition of REFSA Quarterly is available in electronic form only. Please feel free to print and share with your friends.

REFSA REPLIES | The REFSA team’s take on current issues

QUESTION: Beyond REFSA, how are you paving the way for a better Malaysia?

Chi-Chang, Chief-At-Large Wai Kuan, Chief of Everything Else (CoE) With the grassroots: my neighbours, I will stretch the capacity of our con- residents‟ association and city coun- cil. Longkang politics is as important sciousness by teaching more yoga and learning taichi. Along the way, I as pontificating on government poli- also hope to get to know some of the cies and engaging PEMANDU in a high-level deconstruction of the ETP. 47% of my fellow Malaysians who voted for the coalition that opposes My neighborhood is crumbling: rats proliferate; the playgrounds, roads and drains need mine. On a more mundane level, I will repair. I will demand better hygiene in our neigh- sweep my front and back yards, clean the longkang bourhoods and hawker stalls for a start. But we can‟t and do so for my neighbours too. Don‟t rely entirely just demand - we ourselves must participate too! Can on your government and especially not on poorly- we behave like everyday is Bersih day? We all acted paid, unskilled foreign workers to do everything for neighbourly and left no litter that momentous day. you. Adopt a road or park, clean and maintain them Federal government might be out of reach, for now, quietly. Then start a community campaign and invite but local improvements are well within our influence. your neighbours to join you; share the fun with your ADUN or MP.

Sandra, Contributing Editor Kar Jin, Intern Extraordinaire

It has always been my contention I‟m currently the secretary for the NGO that education is the key to driving coalition Suara Rakyat 505. With the change, and it is one area I often re- analysis and fact-finding experience visit even while being involved else- from REFSA, I hope to develop a more where. Developing young minds may informed, socially conscious and strate- seem a tiny contribution in the big gic way of civil disobedience. More than scheme of things, but the little ripples that, I hope a third force beyond politicians from both we each create in our own small way will add up to sides will emerge: grassroot activism that is truly for one big tidal wave, I believe. Lecturing, giving cours- the people and by the people. Soon, I‟ll be off to Yale es and judging English-related competitions in University, where I hope to learn how to contribute schools fill my days currently. Also, through Parents meaningfully to Malaysia, or even better, the world! Action Group for Education (PAGE) Ipoh I submitted Editor‟s note: We hope Kar Jin lasts longer than Dr Devaraj Jaya- a couple of memoranda on education to the MoE kumar, MP for Sungai Siput. At Yale in the 70s, the good doctor task force, with suggestions on how we can go for- dropped out after two years to serve Malaysians in Sarawak. ward in this contentious but so important area.

INFOGRAPHIC | 6 March 2013

INFOGRAPHIC | 6 March 2013 INFOGRAPHIC | 13 March 2013

Cartoon by BL

Good governance - about 20 ministers

INFOGRAPHIC | 20 March 2013 Adapted from UMNO-nomics

Adapted from UMNO-nomics

Adapted from UMNO-nomics Federal government:

p o w e r h o g ? nomics

he greedy hog at the table is - T the one who ends up hogging everything in sight. UMNO Aside from very small grants based on population and roads, payments to the state governments are at the discretion of the federal government. On the other hand, the federal government is entitled to all the corporate and income taxes generated by the state gov-

ernments. CartoonbyJohnny Ong / Taken from Spot the problems yet? The clear- state governments might want to of the prime minister. And surely est issue with these policies is in implement to improve the welfare the Ministry of Works should han- how performance is not related to of their various states. dle the licensing of contractors, not rewards for the states. For exam- the MoF! ple, Selangor generates RM16 bil- There are power hogs even within lion in tax revenue for the federal the federal government itself, with The BN federal government is government, yet is only allocated power increasingly centralized practicing unabashed avarice in RM400 million in grants – less than within the Prime Minister‟s depart- concentrating financial and political 3% of what it generates. This also ment and the Ministry of Finance power at the federal level, stripping restricts the state governments‟ (MoF). The Land Public Transport the thirteen state governments of actions – by controlling the alloca- (SPAD), for example, should be the their state rights and prerogatives tion of grants, the federal govern- responsibility of the Ministry of in the process. ment controls the measures the Transport, but is within the purview

Adapted from UMNO-nomics than how good your products or your Class-F status? services actually are. These opaque procurement poli- A tender situation If there isn‟t any incentive to im- cies hinder innovation, creativity prove, human nature is such that and productivity, while putting he federal government‟s poli- there will be hardly any effort put genuine Malaysian entrepreneurs at T cies favouring negotiated con- into upgrading service-levels or an disadvantage. tracts and gatekeepers such as productivity. And the record shows Worse still, despite 43 years of PEMANDU have fostered an anti- that a mere 0.2% of class-F Malay- formal „bumiputera-first‟ policies, competitive economy, where the sian contractors have upgraded to bumiputeras still comprise more likelihood of procuring a contract a higher class. Why bother upgrad- than 3/4 of the bottom 40% of depends on who you know, rather ing if you‟re assured contracts by households living on RM50 a day. So much for „protecting the bumiputera‟! Pakatan Rakyat‟s open tender policy in Penang is a huge step in the right direction. Awarding contracts to the most capable contractors not only facilitates improve- ment amongst the contractors, but also rewards industrious contractors based on their own strength. We need to look past baseless accusations such as „affronts to bumiputera rights‟ and „threats to the Chinese interests‟ and realize the massive potential behind the open tender policy if implemented wisely nation-wide.

8 REFSA Says | 20 Mar 2013 Big fat ‘F’ for Fail The ETP has failed to meet its targets By: Teh Chi-Chang & Dr Ong Kian Ming e are dismayed to find perception W manipulation and deception still surrounds the Economic Transformation Programme (ETP). The mainstream media today is full of praise and claims of excellent performance and transformation. This is exactly the opposite of the true picture. Today, REFSA draws attention to 3 points: Failed: Reaching the target to grow 1 national income by 6% per year “Propelling Malaysia towards becoming a high-income developed nation” as promised by the ETP requires Gross Na- tional Income (GNI) to grow by 6% per Let‟s go back to the part saying GNI year. PEMANDU highlighted this 6% per The 2012 Annual per capita had „risen from US$6700 in year growth target in its “A Roadmap for Report of the ETP 2009 to US$9970 in 2012‟ and that „this Malaysia” report that launched the ETP represents a 48.8 percent surge in just a with much fanfare in 2010. makes not a single two year period‟. Not only is 2009 to 2012 a 3 year period rather than a 2 However, the 2012 Annual Report of reference to the fact year period, the calculations for GNI per the ETP makes not a single reference to that the ETP failed to cap in 2012 are also misleading. Exhibit the fact that the ETP failed to meet this B footnotes GNI per capita in 2012 at crucial 6% per year growth target last meet this crucial 6% RM30,809 and an exchange rate of year. The fact is, real GNI grew by a pe- per year growth RM3.058 to US$1. This translates into a destrian 4.3% in 2012, well below target last year. GNI per capita of US$10,075 rather than PEMANDU‟s aspirations and even lower US$9,970. than the 4.9% recorded in 2011. leading. Inflation does not make us any So what are the correct numbers? Until More perception manipulation and richer. If our incomes go up by 15%, and the high-powered and highly-paid staff deception from PEMANDU 2 so do the cost of the things we buy, we and consultants at PEMANDU can get Rather than address the core issues im- are not any richer, because the extra their basic math right, let‟s start from peding growth, PEMANDU continues to income is spent on paying more expen- first principles and use data from the practise perception manipulation and sive prices for the goods and services Department of Statistics. The latest set deception in its efforts to hoodwink Ma- that we use. of GNI figures from the Department of laysians into believing it has reached or We also pointed out that a weakening Statistics (which PEMANDU surely has exceeded its targets. US$ will not directly help most Malaysi- access to as well), shows GNI per capita Firstly, its 2012 ETP Annual Report ans. Say your household income is at RM24,879 for 2009 and RM30,809 quoted real GDP (Gross Domestic Prod- RM3,000 per month (in line with about for 2012. This works out to a mere uct) growth rates, which at 5.1% and 70% of Malaysian households). At 23.8% GNI per capita growth from 2009 5.6% in 2011 and 2012, were higher RM3:US$1, that is equivalent to to 2012, less than half the 48.8% figure than GNI growth and presented a slight- US$1,000. Say the US$ weakens to cited in the Annual Report! ly better picture of the sad situation. RM2.50:US$. You still earn RM3,000 per On average, this works out to a 7.4% Secondly, when discussing GNI, month, but that‟s now worth US$1,200, per year growth in nominal GNI per cap- PEMANDU used nominal numbers which PEMANDU can then claim is an ita for the three years from 2009 to (which include inflation) and US$ instead impressive 20% increase. But you live 2012 which is less than the 8.2% per of Ringgit. The 2012 ETP Annual Report here and spend here. Your teh tarik still year average growth rate registered states “The country‟s GNI per capita has costs RM1.50, your coffee shop lunch from 2001 to 2010. GNI per capita has risen from US$6,700 in 2009 to RM5 …. The US$ increase is certainly been below the long-term trajectory US$9,970* in 2012. This represents a helpful if you are visiting the United after PEMANDU and the ETP came into 48.8 per cent surge in just a two-year States, but on a RM3,000 household force in 2010. In other words, the ETP period. Based on current projections and income, that is an unlikely possibility. and PEMANDU have had no impact in barring unforeseen circumstances, this Rich Malaysians who travel overseas increasing our GNI per capita above its gives Malaysia the potential to achieve a extensively would certainly benefit from long term growth trajectory! GNI per capita of US$15,000 earlier than a weaker US$, but not the vast majority the 2020 target.” of Malaysians. Massive plunges in investments As pointed out in our Focus Papers PEMANDU still cannot even get its and job creation critiquing the ETP, quoting nominal basic Math right numbers including inflation can be mis- 3 Pg 10

INFOGRAPHIC | 2 April 2013

REFSA Says | 21 Mar 2013 is a mere 7% of the committed RM179b. ETP Failed: More Malaysians qualify for IN- Big fat ‘F’ for fail (Part 2) The 2012 ETP Annual Report is no dif- BR1M payments than before ferent. It leaves us all in the dark as to Ironically, it is another so-called The ETP has failed how much of the committed investments „achievement‟ of PEMANDU which strips from the 2011 as well as 2012 have been bare the total failure of the ETP in terms of ordinary Malaysians actually invested. Any reasonable Malaysi- sustainably raising the incomes of those By: Teh Chi-Chang & Dr Ong Kian Ming an would expect to see a large amount of at the bottom of the economic ladder. actual investments in 2012 from the When launching the ETP, PEMANDU said, RM179b committed by 2011 Entry Point “A key focus will be on ensuring that sub- ETP Failed: Committed investments col- Projects (EPPs). They have had a whole stantial improvements are made for peo- lapsed in 2012 year or more to be rolled out, and would ple with the lowest household incomes.” The ETP experienced a spectacular re- have had the help of PEMANDU cutting Sadly, PEMANDU‟s approach has been versal in its second full year of existence red tape and fast tracking processes. mega contracts for the big boys, while in 2012. The value of committed invest- The 2012 ETP Annual Report also fails to placating poor Malaysians with crumbs ments in 2012, their Gross National In- state the breakdown of investments be- that momentarily lift their incomes. come (GNI) impact and the number of tween the public (government) and pri- The number of Malaysians eligible for jobs created collapsed compared to the vate sector. This information is important welfare has been steadily increasing un- previous year. as a major target of the ETP is to have the der PEMANDU‟s tenure. It was originally 1) Committed investments slumped 82% private sector contribute 92% of the in- estimated that only 3.4m households from RM179.2b in 2011 to RM32.1b in vestment necessary to drive the ETP. comprising 53% of total households in 2012; Malaysia earned less than the RM3,000 2) These investments were also less in- Nearly 70% of our per month threshold for entitlement to come accretive. The Gross National In- the RM500 Bantuan Rakyat 1 Malaysia come (GNI) impact of the committed population are on (BR1M) handout. But ultimately, approxi- 2012 investments plunged 95% from welfare while mately 4.2 million applications were ap- RM129.5b in 2011 to a mere RM6.6b in proved which resulted in RM2.1b being 2012; PEMANDU paid instead of the originally anticipated 3) Reflecting the low value-added nature trumpets projects RM1.8b. Under the latest BR1M 2.0, which of these investments, the number of jobs and investments also includes individuals earning less than expected to be created fell too but by a RM2000 per month, a total of 6.1m ap- smaller 70% (313,741 in 2011 to 94,702 under the ETP. plications have been approved. in 2012). If GNI per capita has indeed soared The miserable investment, GNI impact In simple terms, each Ringgit of com- 48.8% in two years as PEMANDU claims, and job figures for 2012 coupled with the mitted investments in 2012 is expected why has the number of Malaysians eligi- absence of disclosure on the amount of to generate less GNI and create jobs that ble for welfare handouts increased rather actual investments and the public-private pay lower than the investments commit- than decreased? Over 20 million Malaysi- breakdown suggests the following logical ted in 2011. The GNI for each job created ans, or nearly 70% of our population are conclusions: by the 2012 committed investments is on welfare while PEMANDU trumpets pro- 83% lower at RM69,692 GNI per job in 1) That many of the announced EPPs, jects and investments under the ETP. 2012 compared to RM412,761 in 2011. especially those in 2011, have failed to ETP Failed: To Transform Malaysia take off; In terms of capital intensity, the invest- The ETP Annual Reports and publicity ments per job fell 41% from RM571,172 2) That the private sector is not driving focusing on investments, projects and in 2011 to RM338,958 in 2012. the EPPs as originally envisioned; and US$ income proves our view that the ETP ETP failed: What happened to the shovel- 3)That the private sector is losing confi- is only there to help the „big boys‟ who ready projects? dence and interest in the ETP. can lobby PEMANDU to fast track their Repeating the experience of 2011, the The 2012 ETP Annual Report attempts projects rather than measures that help 2012 ETP Annual Report also avoided to skirt the issue by saying that many of ordinary Malaysians sustainably improve stating the amount of actual investments the EPPs were front-loaded. However, their livelihoods. compared to committed investments. In even on that basis, the RM211.3b of total If PEMANDU and the ETP were truly our earlier critiques, we called out investments for 2011 and 2012 is nearly about transforming our nation for the PEMANDU for failing to declare in its 2011 RM30b short of the RM240b for two years better, there must be far more emphasis ETP Annual Report that actual invest- originally targeted by the ETP. on improving education, skills and the ments in 2011 was only RM12.9b. This Further evidence of the failure of 2011 social and business environment. They EPPs to take off is the fact that the 2012 must also have the political will to combat ETP Annual Report could only highlight grand corruption rather than just clear red the completion of a RM4.9m new restau- tape and increase competition by dis- rant for the RM9.6b Karambunai Integrat- mantling monopolies which are controlled ed Resort City. The absence of any news by political cronies. on the RM3 billion Tanjong Agas Oil & Finally they must be honest and trans- Gas and Logistics Industrial Park in Pa- parent about their achievements rather hang also points to the possibility that than resort to manipulating statistics in this massive EPP has grounded to a halt. order to deceive the public. Only then can Incidentally, these are two projects which we take real steps towards a future where we highlighted as „dodgy‟ EPPs as far back all Malaysians can have the dignity of de- as February 2012. cent jobs, housing and security.

IN- INFOGRAPHIC | 10 April 2013

INFOGRAPHIC | 13 May 2013 INFOGRAPHIC | 20 May 2013

14 REFSA Says | 24 Apr 2013 Why do you support (caretaker) Prime Minister Najib? By: Teh Chi-Chang FEATURED! Firstly, notice how negative the Free Malaysia Today have been asking Barisan Na- answer is. When we choose to I sional (BN) supporters this follow a leader, it should be be- question in recent days. cause of positive traits that we mation led by PEMANDU is really Their consistent answer has admire. But the BN supporters a façade of Perception Manipula- been, “What is the alterna- that I have met appear too tion and Deception, as REFSA has tive?” This goes all the way from sheepish to attach positive quali- analysed and revealed. lay supporters to the BN candi- ties to their leader, (caretaker) Why do you support a leader dates themselves. While doing prime minister Najib. For exam- who does not denounce political my weekly marketing in SS2 on ple, they have never said, “I sup- violence? Why do you support a Sunday, I bumped into the BN port Najib as my leader because leader who does not have the candidate on her campaign he is charismatic, energetic, fair, confidence to expel the extrem- rounds and asked her this very visionary, honest, capable, trans- ist, thuggish members of his par- same, simple question. formative ….” ty? Why do you support a leader “Why do you support Najib?” I Indeed, Najib is a leader who who rewards chauvinists like asked. condones political violence and, Zulkifli Nordin? Can you trust a perhaps worst of all, practises leader who lies on something as “What is the alternative?” replied divisive, communal politics and basic as economic growth num- Ms Chew Hoong Ling, BN-MCA deliberately manipulates eco- bers? candidate for P.106 PJ Utara. nomic figures to deceive Malaysi- “What is the alternative?” ans. Consider just 3 points: It is true that Pakatan Rakyat Najib has never denounced leader Anwar Ibrahim is a political 1 vicious attacks on Pakatan chameleon who has changed po- Rakyat (PR) leaders and workers, litical allegiances often in his col- which have left PR supporters ourful career. But Anwar at least bloodied and hospitalised. Nei- chooses one colour at a time, un- ther did he chasten BN support- like Najib who preaches 1Malay- ers who chanted death threats to sia on one hand and picks PR leader Tian Chua. „winnable candidates‟ like Zulkifli Najib ordered that Tanda Put- Nordin with the other. 2 era, a film that his own Cabi- Anwar is scrutinised by the net has said can “cause conflict”, mainstream media everyday, un- be screened to exclusive Malay like Najib, who has not admitted audiences such as FELDA settlers that he misled Malaysians on and university students. His slate economic growth numbers. of „winnable‟ candidates includes So, dear BN supporters, the al- characters like Zulkifli Nordin, ternative, Anwar Ibrahim, is a Najib falsely Zulkifli has been hailed as a leader who has his flaws. But he declared that the “transformation candidate”[ii] de- is a leader who leads with words spite just last month belittling economy grew by and ideas, not violence; and a Hindu beliefs and calling our Ma- 49% from 2009 to leader who leads with hope, not laysian-Indian compatriots by a money, fears and lies. 2011. The reality is pejorative term. And most importantly, for all his that, in real Ringgit “Live” on national television flaws, real, perceived and manu- last month, Najib falsely de- terms, the 3 factured, Anwar has never waved clared that the economy grew by economy has the keris around at political 49% from 2009 to 2011. The re- events during politically charged grown by less than ality is that, in real Ringgit terms, times, unlike UMNO leaders such the economy has grown by less 5% in each of the as Hishamuddin Hussein, and, than 5% in each of the last two last two years. allegedly, Najib himself. years. The so-called transfor-

15 REFSA Says | 25 Apr 2013 FEATURED! GE13: REFSA chooses transformation ABN News Text and pictures by: Teh Chi-Chang

n Sunday, May 5, Malaysians choose? The incumbent Barisan relations. O go to the polls. For the first Nasional (BN), which is the only Pakatan has transformed state time in our history, in the 56 federal government that all of us governments. The federal Auditor years since Merdeka, we have a have known so far? Or the young -General has given Penang top real choice in choosing who to upstart Pakatan Rakyat? marks for being the best finan- grant the privilege of governing We at REFSA have made our cially-managed state; and the us. Which coalition will you choice. We choose transfor- RM1.2b cash savings in Selangor mation. We choose Pakatan are the highest in 28 years. Rakyat. Pakatan state governments were Pakatan has transformed race the first to give direct welfare aid relations. Malaysians of all races to Malaysians: for example, the gather congenially under the PAS Senior Citizen Appreciation Pro- moon and DAP rocket. A Malaysi- gramme in Penang and the TA- an-Chinese flying the PAS flag, or WAS programme in Selangor. Pa- a Malay waving the DAP rocket katan has demonstrated that it is symbol, would have been an un- possible to be financially respon- imaginable sight as recently sible and populist at the same as Feb 2008. Pakatan leaders time. have transformed the prisms by which we view each other, and led Continue on Pg 23 >> Malaysians from narrow communal siloes to broader, harmonious

INFOGRAPHIC | 28 April 2013

Read full infographic at www.refsa.org

INFOGRAPHIC | 18 April 2013

Read full infographic at www.refsa.org Read full infographic at www.refsa.org

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REFSA Rojak is our weekly take on the goings-on in Malaysia. We trawl the newsflow, cut to the core and focus on the really pertinent. Full of flavour, lots of crunch, this is the concise snapshot to help Malaysians keep abreast of REFSA the issues of the day. ROJAK Our editorial pick of the TOP 5 News Items from January to May 2013:

Land-„lords‟ robbing Sarawak bare tirade and “listen, listen, listen” command #5 International NGO Global Witness against a student‟s persistent questioning at zoomed in on the blatant plundering of Sara- a public university forum. wak‟s natural resources, and opened a repul- But guess who has not learnt anything from sive can of leeches. An explosive video, se- the drama? The BN federal government de- cretly recorded by its undercover investiga- ported Australia senator Nick Xenophon for tors, featured chief minister Abdul Taib “humiliating Malaysia”, as Xenophon criticised Mahmud‟s family members spilling the beans the government‟s handling of the Bersih 3.0 on how they made lucrative profits at the rally. This earned Putrajaya the label „bully- expense of the indigenous poor, and got boy‟ in the Sydney Morning Herald. away by cunningly skirting the law. On top of that, a Universiti Malaya forum The 16-minute film notes the elite family‟s was ordered cancelled just because PKR and misplaced sense of entitlement to the land, PAS politicians would be participating, while when in fact logging licenses issued by economist Azrul Azwar Ahmad Tajudin was Taib encroached upon the ancestral territory suspended by Bank Islam for expressing BN wins GE-13 with minority votes of the natives. According to Global Witness, his professional opinion that BN might lose #1 The billions of ringgit poured in by BN less than 5 percent of Sarawak‟s forest is the next elections. School teachers were not could not buy the hearts of the Malaysian currently left standing. spared from the gagging – they were warned majority. The blue team had won GE-13 with Taib has refused to cooperate with the not to make anti-government statements on a mere 47 percent of popular vote – a historic Malaysian Anti-Corruption Commission social media, or risk disciplinary action. low. The fact that BN was declared the new (MACC), labeling it as “naughty”. Not only is While voices of reason are denied a plat- government without majority support he still enjoying the good life of being, re- form, the Prime Minister openly ex- brought overwhelming attention to the un- portedly, richer than the Queen of England, pressed support for the screening of contro- fairly divided constituencies. One rural vote is he also got a three-fold salary hike from the versial film Tanda Putera to a select audience reportedly equivalent to six urban votes, and BN federal government recently. of FELDA settlers, although the film was held calculations showed that BN only need to score 17 percent of popular vote to rule Ma- Sabah under siege back by the Cabinet for containing “scenes laysia! #4 Sabah has been the target of scruti- that may cause conflicts”. Pricey war Chinese bear the brunt of the blame – Dato‟ ny for the past few months – crosshairs are Sri Najib Razak said BN‟s dismal performance focused on the armed intruders in Lahad Election is an expensive game, and #2 is due to a “Chinese tsunami”. However, an Datu, while eyes are peeled on illegal immi- even more so if you play it like BN. The bar- analysis showed that Pakatan Rakyat won in grants given blue identity cards. rage of the federal ruling coalition‟s adver- 59 mixed-race federal seats, almost double Our sovereignty came under siege early this tisements we see in the run-up to GE-13 had its 30 wins in Chinese-majority seats. Hence, cost the Prime Minister‟s Department (PMO) year, as Sulu militants barged into Sabah in the GE-13 result was really a “Malaysian tsu- broad daylight and demanded to reclaim the and BN RM73 million in March 2013. The nami”. state. Curiously, then Deputy Defence Minis- revelation by consumer analysts Nielsen Me- The poll results are a sobering call – not ter declared that the “Home Ministry is in dia Research placed PMO as the top adver- tisement spender in Malaysia, trumping cor- just for BN, but for Pakatan Rakyat as well. charge of the situation and the police have While the ubah-chanting coalition had won the powers to handle it”. Why were cops sent porate giants like Nestle and Unilever Malay- sia. This is on top of the goodies and cash 50.3 percent of the popular vote, this number to confront the Sulu army when we have a also reveals that nearly half of Malaysian vot- Defence Ministry which swallowed RM15 handouts showered upon civil servants and poor Malaysians. ers, mostly in the rural areas, remained to be billion of Budget 2013 spending? Could the convinced. deaths of the eight policemen have been BN even promised to increase the Bantuan averted if control of the situation was given to Rakyat 1Malaysia (BR1M) handouts to RM The race to Putrajaya had also been one of those trained for military combat? 1,000. Is the ruling coalition even aware that the tightest in history. BN had pulled out all our national debts (including hidden debts) the stops, including promises of goodies, While the government is fighting off one running a controversial ad-blitz against DAP, troop of foreigners, it was alleged to have have soared past the 55 percent ceiling? The answer may be „no‟. After all, our Prime Min- inviting Korean superstar Psy for its Chinese welcomed another hoard of illegal immi- New Year party in Penang and so on. The grants with open arms and blue MyKads. ister seems to believe that our economy is coalition was also alleged to have secured Former Sabah National Registration Depart- hunky-dory. He boldly announced on national TV that our Gross National Income (GNI) their victory through dubious voters, money ment (NRD) officers and directors claimed politics and fraud. that the department was instructed by the increased by 49% from 2009 to 2011. The then state Election Commission (EC) to fur- truth is that World Bank data showed only an To protest the election result, Pakatan had nish hundreds of thousands of foreigners increment of 16 percent! led the Black 505 rallies, one of which saw the with identity cards in exchange for votes. Tun It appears that Putrajaya is starting to feel attendance of 120,000 Malaysians in and Dr Mahathir himself admitted to granting the pinch though - Minister in the PM‟s de- around the Kelana Jaya stadium. Nonetheless, citizenship to Filipinos in Sabah when he was partment Datuk Seri Idris Jala is eager to im- life goes on in the government. Najib an- Prime Minister, but argued that this was plement the goods and services tax (GST), nounced his new line-up of Cabinet minis- “within the law”. and seemed to suggest 7 percent as a start. ters, which did not transform very much, save for more ministers from Sabah and Sarawak Voices of reason gagged Idris says this would pump in an additional RM27 billion into government coffers. How- and non-political faces such as Transparency #3 Thanks to the infamous „Kak Listen‟, International‟s Datuk Paul Low. It will be in- we had our fair share of sniggers at some of ever, financial experts warned that starting at 7 percent may cause high inflation. Moreo- teresting to see how Low is going to tackle the most creative parodies Malaysians had the prevalent graft culture in the federal gov- come up with. Sharifah Zohra Jabeen, presi- ver, 80 percent of Malaysians have qualified for BR1M. How can a nation with a majority ernment. We certainly hope he won‟t be a one dent of an obscure NGO Suara Wanita 1Ma- -man army. laysia, had drew public fire for her bullying needing government financial aid be ready for GST?

REFSA Says | 13 Dec 2012 ate this RM1.9 billion wafer fab was in the J.P. Morgan’s praise of the ETP is misplaced process of being declared insolvent! Up to now, PEMANDU has not admitted By: Teh Chi-Chang that the economic growth and investment Economic progress is actually much numbers are below par, let alone outline lobal investment bank J.P. Morgan 1 slower than what PEMANDU claims - any moves to improve the pace of growth G released a report which said, “Positive The Malaysian economy grew by just and actual investments. Neither has structural changes are underway with 4.7% in 2011, well below the average 6% PEMANDU addressed the very important economic rebalancing through the per year required by the ETP; question of “Were Entry Point Projects M$1.4T Economic Transformation Pro- While PEMANDU trumpeted RM179 (EPPs) with exaggerated forecasts chosen gramme”. billion of committed investments in 2011, instead of other projects, which were We at REFSA are very intrigued by the a mere 7% of that, or just RM12.9 billion more realistic and honest?” And worst of approving comments emanating from the were actually realised; all, PEMANDU has not, at least publicly, august house of J.P. Morgan. It is com- Erroneous assumptions were made taken any action against the officers re- pletely the opposite of our findings after 2 that resulted in the national income sponsible for the shameless lie that a scrutinising the Economic Transformation and job creation numbers being slashed RM1.9 billion wafer fab plant was 100% Programme (ETP) Roadmap, 2011 ETP by a massive 45% and nearly 20% respec- complete when it does not even exist! Annual Report and related material to tively. This begs the question, “Were pro- We are sure that J.P. Morgan, which understand what PEMANDU had planned jects with grossly inflated forecasts ac- aims to be “the world‟s most trusted and for us Malaysians. cepted as Entry Point Projects (EPPs) over respected financial services institu- Our extensive analysis of the ETP, freely other projects that were more truthful and tion” has sound and reasonable founda- available at www.refsa.org and widely conservative in their projections?” tions underlying its published research. In carried by the on-line community, found Most shockingly, we discovered that the spirit of constructive discourse, and basic numbers that did not add up, pro- 3 PEMANDU was not being truthful for the benefit of all Malaysians, REFSA jects that looked dubious, decisions which about its progress. The most audacious invites J.P. Morgan to elaborate on and made little economic sense and worst of lie is PEMANDU claiming 100% credit for support its statement that the ETP is re- all, perception manipulation and outright the construction of a 200mm wafer fab in sulting in “positive structural changes”. As lies by this powerful unit in the prime Dec 2011 when in actual fact the compa- loyal Malaysians who wish to see our minister‟s department. For example: ny that was supposed to build and oper- country grow and prosper, we appreciate any insights that will take us forward.

>> Continued from Page 15 c r i p p l i n g like in any family. our educa- True, there are party hoppers and tion system. frogs, but these are the exception, Inspiring stalwarts and promising talents Did you not the norm. Extremists such as know: 15% Hassan Ali, Ibrahim Ali and Zulkifli Pakatan has proven that it can of our schools do not have access to Nordin were expelled (and found transform Malaysia for the better, in something as basic as clean water? homes within the BN). Top Pakatan contrast to the „transformation‟ that It is depressing to find the incum- leaders are selfless and willing to sac- prime minister Najib uses as a smoke bent government so insipid and inse- rifice their political careers for their -screen to hide business-as-usual cure that it must resort to oxymoronic parties. Consider PAS vice-presidents shenanigans. Even BN supporters negativities in its election campaign. Husam Musa and Salahudin Ayob, seem to tacitly agree. “What is the Perhaps Pakatan is so strong that the who have left their safe, comfortable alternative?” is their common re- old men at BN cannot find real, solid, home seats to pursue the Pakatan sponse when asked why they support reasonable themes to support their cause in the BN strongholds of Putra- the dacing. They do not extol the vir- case. jaya and Pulai, Johor, where UMNO tues of Najib or of the BN. Instead, True, Pakatan chief Anwar Ibrahim was born. they imply the alternative is worse. has issues. But unlike Najib, who is REFSA chooses Pakatan for transfor- Indeed, a key thrust of the BN elec- “BN”s best hope”,Pakatan has a depth mation, harmony, prosperity and sta- tion campaign is fear mongering and and breadth of talent. Experienced bility in action. We reject the decep- cultivating mistrust and divisiveness. stalwarts like Tok Guru Nik Aziz and tive rhetoric proffered by the BN and Malays are warned that the DAP will Lim Kit Siang have inspired a profu- disseminated by its formidable prop- install a Chinese-Christian prime sion of younger leaders who are set to aganda machine. To those who prize minister who will threaten their inter- take Malaysia forward. Just to name a „neutrality‟, we say being neutral is ests; the Chinese are presented with few: Lim Guan Eng, Mat Sabu, Tony also making a choice, albeit passively. the spectre of PAS-instigated hudud Pua, Husam Musa, Dr Dzul, Teresa If you are neutral in situations of in- law and everyone is cautioned that Kok, Salahuddin Ayub, Nurul Izzah, justice, you have chosen the side of “Najib sees dire consequences for Liew Chin Tong, Hannah Yeoh, Fuziah the oppressor. If an elephant has its markets if Pakatan wins”. Salleh and Rafizi Ramli. foot on the tail of a mouse and you The mainstream media BN propa- True, there is infighting within Pa- say that you are neutral, the mouse ganda machine conveniently disre- katan, but that can also be interpret- will not appreciate your neutrality gards the contradiction and inherent ed as a vigorous exchange among – Desmond Tutu implausibility of a Chinese-Christian equals. Unlike domineering UM- Having made our choice, we will prime minister making Christianity NO, Pakatan is a genuine coalition of the official religion and imposing continue to work on relevant facts 3 equal parties, each with their own and sparkling analysis. As always, we hudud law. That such double false- strong personalities, and the venting hoods have traction with Malaysians welcome constructive discourse. No of different views is vital for political lies for us – we are confident the truth is testimony to the triumph of suc- revitalisation. So there will be argu- will prevail. cessive BN federal governments in ments and there will be squabbles cultivating mistrust among us and before a consensus is reached – just

24 Focus Paper | 1 Jul 2013 The Malaysian Oil and Gas sector - Scoping Report By: Ong Kar Jin and Teh Chi-Chang, CFA (Based on the report by Eugene Lee)

The cornerstone of the Malaysian economy. The Still water runs deep. Petronas itself is generally oil and gas (O&G) sector contributes about 40% of perceived as well managed - it ranked slightly the nation‟s total revenue. In 2012, the federal above average among national oil companies in a government collected RM34.4 billion in direct and 2011 World Bank paper on governance and per- indirect taxes from the O&G industry. Besides formance - but the issues are deeper. A 2011 paying taxes, the national oil company, Petronas, report by Transparency International and the also contributes directly to federal government Revenue Watch Institute places Malaysia below- subsidy programmes1 such as cheap gas for inde- average in terms of 2revenue transparency. pendent power producers.

As transparent as crude oil. There is very little The way forward. Joining the Extractive Industries public information on this crucial sector. Transparency Initiative (EITI) would facilitate Petronas, by law, is answerable only to the Prime Minister himself. Underneath the smooth greater transparency and accountability. The Petronas operations, issues fester such the non- scoping report on which this Focus Paper is payment of oil royalties to state governments based is the first step. It aims to establish a controlled by the Pakatan Rakyat federal opposi- baseline of knowledge to facilitate advocacy ef- tion, the increasing dependence of the federal forts towards this goal. government on 3 dividends from Petronas and 4 Petronas‟ ability to sustain itself going forward.

Read the full scoping report Malaysia’s Oil & Gas Sector at www.refsa.org