Q U a R T E R

KDN: PP17652/01/2013 (031593) FREE — NOT FOR SALE January 2013 | Issue 1, 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 BUDGET 2013 ISSUE

REFSA Says | 12 Oct 2012 Subsidies go up in flames while poor Malaysians suffer

By: Teh Chi-Chang, CFA

Cheap petrol benefits the rich more than the poor. Ong Johnny by Cartoon ome academics believe that subsidies. on unnecessary ivory-tower analy- S there is little empirical research 3) RM42 billion is enough to give sis. The simple truth is that the to support the popular argument these bottom 1/3rd of households bulk of the subsidies goes to that blanket subsidies such as for RM1,560 per month - which will cheap fuel which is burnt, and the cheap petrol and sugar benefit up- more than double their current rich man burns more than the per-class Malaysians who consume incomes of RM1,500 per month! poor. Just ask the average man on much more than their poorer a small motorbike how much he Quite clearly, federal government cousins. spends on petrol and contrast that subsidies are not going where they to what a man driving a gleaming REFSA lays out some basic facts - should. RM42 billion is enough to BMW spends. 1) The federal government subsidy give the poorest 1 of 3 households bill is expected to exceed RM42 RM550 every 10 days, as opposed There are also views that these billion in 2012, which is a massive to the occasional RM500 BR1M subsidies are a “necessary burden” four-fold increase from RM 10 bil- payment. Note that in addition to in a “highly skewed capitalist lion in 2007. the RM42 billion federal govern- economy like Malaysia”. We would draw attention to the reality that 2) If we can agree that subsidies ment subsidies, Petronas bears income inequality in Malaysia re- should go only to the poor, and we another RM20 billion or so per mains high despite the expanding define the poor as the bottom year in supplying cheap gas to the subsidies under Datuk Seri Najib‟s 1/3rd of households, there will be independent power producers and administration. 2.3 million households or nearly other industries. 10 million Malaysians who will get Let‟s not fritter away resources Continued on Page 22>>

EDITOR’S NOTE EDITORIAL TEAM Whenever the National Budget is announced, an adage comes to Executive Editor mind, “If something sounds too good to be true, it usually is.” Like Teh Chi-Chang, CFA the previous year, Prime Minister Dato Sri Najib Razak untied his sack of goodies on 28 Sept 2012 and lo! Out bounced RM 3 billion Managing Editor worth of handouts for poor families, ballooned subsidies, dis- Foong Li Mei counts for public transportation, incentives for the entrepreneurs and, curiously, smartphone rebates for the gadget-glued youths. Art Director We at REFSA joins the more discerning Malaysians in being cau- tious about these budget goodies. Do they really add value to our Foong Li Mei quality of life in the long run? Are they digging a bigger grave for our economy? What is the real price of these big-ticket expendi- Contributors tures in the name of “enhancing the well-being of the rakyat”? To move beyond spinning in rhetorical circles, REFSA attempts to Ong Kar Jin answer these questions by analyzing the Federal Budgets of 2012 Dr Lee Hwok Aun and 2013 within the context of Malaysia‟s economic reality, as well Galvin Wong as pitching them against the Alternative Budgets proposed by federal opposition coalition Pakatan Rakyat. Dr Ong Kian Ming To misquote the online movie-review sensation Nostalgia Critic, Sandra Rajoo we crunch the humongous numbers and dry data so you don‟t have to. Our extensive analyses on the Budget are captured in vibrant and down-to-earth infographics for easy digestion on the chunky topics. You can also view and download these materials on our If you think you are website www.refsa.org. too small to make a Happy new year, Malaysians! We survived plenty in 2012 (such as difference, try sleeping the umpteenth apocalypses-that-weren‟t), but the fight for a better “in a closed room with Malaysia continues. Here‟s wishing our readers conscience and wisdom in the year of the 13th General Elections! a mosquito. Li Mei - African Proverb Managing Editor ”

Behind the theatrics Our infographic series Budget 2013: Behind the Theatrics compares and contrasts Federal ROJAK Awards 2012 Budget and Pakatan Rakyat policies. T H E The winners of our Sour Mangoes Pg 3 to 8 Merit Prize, Cool Cucumbers Award, Styrofoam Box Bonanza A Rakyat’s guide BUDGET and the ultimate honour, Order of ISSUE the Rubber Band. Astronomical numbers made down-to- earth. REFSA’s infographic series Budget 2013: The Rakyat’s Guide illuminates how REFSA dissects the fiscal Back cover (Pg 24) the BN Federal government divides our choices and crucial decisions economic pie, and the key questions to made on Malaysians‟ behalf. ask of Budget 2013. Diversity in discourse Pg 11 to 19 Guest writer Ong Kar Jin does not believe that politics should be Rising above the muck black and white when the world isn’t. He calls for open minds that Tired of politicians’ mudslinging and dirty tricks? We can maturely accept criticisms. are too. Thankfully, REFSA’s forum showed that voices Pg 20 of reason prevail among our rising young leaders. Pg 9 Extreme showdown N e e d - based action flawed BN vs PAS - which is the real extremist? Our University Malaya’s Dr Lee Hwok Aun reasons why need- infographic pitches the two sides’ stands based affirmative action is unworkable. against one another. Pg 16 Pg 21

Published by: Research for Social Advancement (REFSA), 2nd Floor, Block A, Wenworth Building, Jalan Yew, Off Jalan Pudu, 55100 KL. Printed by: Infocus Printing Sdn Bhd, No. 11, Jalan PBS 14/14, Taman Perindustrian Bukit Serdang, 43300 Seri Kembangan, Selangor.

INFOGRAPHIC | Budget 2013: Behind the Theatrics

Did you know? REFSA is a small organization, with only 3 full-time staff.

Wish to keep REFSA going? Read Page 23 to find out how! REFSA’s study of O & G industry 0% of Malaysia‟s revenues under “A Southeast Asian 4 is derived from the oil partnership for better gov- and gas sector. However, ernance in extractive indus- information on this crucial tries”, which has the objective sector is scant. It is known of promoting the effective, that national oil company transparent, and accountable Petronas - which reports management of oil, gas, and directly to the prime minister mineral resources by sub- - has exclusive control of our national and national gov- petroleum resources. But ernments in Southeast Asia. who are the other major The lead organisation for players? What are the oil- this wider initiative is the producing states entitled to? Revenue Watch Institute What are the contract terms (RWI), with funding from the and conditions for explora- United States Agency for tion and production? International Development REFSA is embarking on a (USAID). The initiative falls scoping study of the oil and under the umbrella IKAT-US gas industry in Malaysia to initiative: “Civil societies in- gather the facts and figures novating together”, promot- into an authoritative docu- ing partnerships, networking ment. This will serve as the and the sharing of experi- base for future advocacy ences between Indonesian, work to increase standards of US, and Southeast Asian civil transparency, accountability, society organisations. and responsible resource This scoping study is being stewardship in the oil and undertaken by Eugene Lee, gas sector, with the ultimate who can be contacted at eu- goal of Malaysia joining the [email protected]. Further Extractive Industries Trans- information on RWI and the parency Initiative (EITI). EITI is available at REFSA‟s project represents www.revenuewatch.org and the Malaysian component http://eiti.org respectively.

INFOGRAPHIC | Budget 2013: Behind the Theatrics - Aid to entrepreneurs no remedy for ailments in biz culture

INFOGRAPHIC | Budget 2013: Behind the Theatrics - Aid to entrepreneurs no remedy for ailments in biz culture INFOGRAPHIC | Budget 2013: Behind the Theatrics - Pumping money into vocational education is not enough

Place your order now! Visit shop.refsa.org or drop us an email at [email protected]

INFOGRAPHIC | Budget 2013: Behind the Theatrics - Will the race to raise household incomes uplift the poor?

UMNO-nomics excerpt N o t o G S T ccording to our Prime A Minister, Malaysia is a “modern industrial upper middle income country.” Simple statistics easily con- tradict this bold statement: the average income of 80% of all Malaysian households only comes up to about Cartoon by Johnny Ong, from UMNO- RM2500 per month. When nomics: The Dark Side of the Budget. the government distributed the RM500 payment to ing the millions of Malaysian households with incomes families surviving on less below RM3000 a month un- than RM50 per day. der its BR1M scheme, over 4 The rationale behind the million households qualified! GST – to generate more gov- So many Malaysians need ernment revenue and stimu- help that the subsidy bill is late entrepreneurship – is massive – equal to 18% of all understandable. However, as government revenue. Also, Pakatan Rakyat‟s (PR) Shadow surely „upper middle income Budget revealed, there are countries‟ do not need thrift other methods to raise tax stores as the Kedai Rakyat 1 revenues without increasing Malaysia (KR1M)? the burden of the average As such, the federal gov- Malaysian. ernment should reevaluate UMNO-Nomics outlines its eagerness to impose a PR‟s proposals in clear lan- Goods and Service Tax (GST). guage, and humorous It would only increase the graphics. Find out how you cost of living, further hinder- can get a copy on Pg 5

INFOGRAPHIC | Budget 2013: Behind the Theatrics - The PTPTN Dilemma

INFOGRAPHIC | Budget 2013: Behind the Theatrics - Tackling the Public Transport Trouble

Relevant Number | 18 Jan 2012 Proton’s price is 53% cheaper in Saudi Arabia

ame set of keys, different price - is 53% cheaper in Saudi Arabia com- S Saudi Arabians pay half of what pared to in Malaysia! Malaysians would, when buying the The fact that local cars are cheaper same model of the “Malaysian car”. overseas makes little sense. Proton The highest price of brand new cars are locally assembled, and uti- Proton Waja, Gen 2 and Persona cars lise a lot of locally-made spare parts. were RM 43,570 between 2008 and To top it off, these Malaysian cars 2009 in Saudi Arabia. The lowest are not levied import tax, so what is price could even go to RM 33,200 for impregnating the price tags? every car sold in Malaysia had been levied 65-105% excise duties, not a Gen 2 1.6 M/T L-Line car, as re- The burden comes from excise including 10% sales tax, adding that vealed in a parliamentary answer by duty and sale tax, which are a mini- Thailand‟s excise duty is about 35%, the Ministry of Finance. mum of 65% and 10% respectively, by contrast. In contrast, Malaysians paid according to Aisha Ahmad, the Pres- RM52,999 for a standard Waja or ident of Malaysian Automotive Asso- Persona, RM 52,988 for a Gen 2. ciation. Full story at www.refsa.org Particularly, Gen 2 1.6 A/T H-Line Aisha said in January 2011 that

Is Pakatan Rakyat a cohesive coalition or a dubious mar- riage of convenience? REFSA‟s forum A Rising Economic Tide that Lifts All Boats aimed to answer this question REFSA by inviting the vocal personalities of the federal opposition to address the economic policies of Malaysia. EVENTSHeld on 17 September 2012 at MAP @ Black Box, Publika, the forum saw Nurul Izzah Anwar (PKR - Lembah Pantai), Nurul Izzah Anwar Liew Chin Tong Dr Dzulkefly Ahmad (PAS - Kuala Selangor) and Liew Chin Tong (DAP - Bukit Bendera) delve in depth about the national Budget, the need to reduce foreign labour, minimum wage and more, with Dr Ong Kian Ming as the moderator. Nurul Izzah also launched UMNO-nomics: The Dark Side of the Budget, written by REFSA‟s CEO Teh Chi-Chang and local cartoonist Johnny Ong. See Pg 4 to find out how you can get a copy of the cheeky and informative book! Dr Dzulkefly Dr Ong Kian Ming

From right: Nurul Izzah, Chi-Chang and Dr Dzul (2nd from left) Chin Tong chatting before the event. UMNO-nomics launched! UMNO-nomics authors. endorsing UMNO-nomics

About 150 intent attendees packed the hall. UMNO-nomics authors with Nurul Izzah. The Q & A session.

made and Her illustration of policies that have 28 Sept 2012 the politics worked in developed countries that are showed that her vision for Malaysia is Voices of Reason played at built upon realistic optimism rather their ex- than baseless idealism. She did not By: Foong Li Mei pense. hijack minds with personal attacks The crowd and distasteful, snide remarks about FEATURED! did not get her political opponents, but captivat- The Malaysian Insider riled up. ed hearts instead with charismatic They were intelligence and self-deprecating listening – humour. er crisp and confident voice which, as Several young women were as sur- H swept through the packed hall crowds go, was a pretty rare sight. prised as I was at Nurul Izzah‟s elo- with grace and conviction. It was I had to remind myself, time and quence, and enquired if she was a nothing like the ferocity fired from lawyer by training. In truth, this up- the top of the lungs that one has again, that Nurul Izzah Anwar is a politician. I have never heard or met and-coming leader holds a Bache- come to expect whenever a political lor‟s Degree in Engineering from figure is handed a microphone. the Lembah Pantai Member of Parlia- ment in person before, but given my Universiti Tenaga Nasional before She emphasised that politicians skepticism about political leaders, I earning her Master‟s Degree in Inter- should not be given full control of expected her speech to be yet anoth- national Relations from John Hopkins the country‟s finances. She spoke of er “We are saviours, they are evil” University, USA. the need for an independent authori- chinwag. Being a public figure calls for a very ty to release a pre-Budget report that basic and necessary skill and that is serves as a reference point for the I was wrong. As a panelist on REF- the art of public speaking. The fact actual Budget, much like the Office SA‟s recent forum Creating an Eco- that many of the attendees, including of Budget Responsibility (OBR) in the nomic Tide that Lifts All Boats, Nurul UK. She urged Malaysians to remain Izzah stirred style into substance, yours truly, were dazzled by the vigilant over government spending, but the real spark of her speech was quality of Nurul Izzah‟s rhetoric only and insist on having a say in how tax the sincerity she exudes. The vice hammered home one sad truth – Ma- monies are spent. She stressed on president of Parti Keadilan Rakyat laysians are used to, and have come the importance of bridging income (PKR) dangled the many weaknesses to expect, the more disgraceful vari- inequality, as poverty enslaves peo- of the BN administration for all to ant of political speeches. see, yet steered clear of dipping into ple‟s minds, preventing them from understanding the policies that are acidic, scathing remarks. Continued on Page 10>>

IN THE NEWS | Coverage of REFSA’s 17 Sept forum & UMNO-nomics book launch INFOGRAPHIC | Budget 2013: Toe Rakyat’s Gunde - The Budget is about choices Malaysia Kini | 18 Sep 2012 We’re Islamist democrats, says PAS leader

By: Hazlan Zakaria langor, Islamists are globally shifting from their "Islamic state doctrine" fter 64 years in political exist- and moving to articulate their mes- A ence, PAS has "come of age", sage in a language more easily un- according to the executive director derstood by the general populace of the party's research institute, and in a more genial way. Dzulkefly Ahmad, who is a member "It is all about how we profess our of the progressive faction in the Is- obedience to God in the most critical among humans and their joint stew- lamic party called the Erdogans. of issues, which is governance and ardship of this Earth. "(We are) no longer Islamists, but government," Dzulkefly told a forum The 'new age' Islamist democrats, Islamist democrats," Dzulkefly de- titled „Beauty and the Beast', organ- Dzulkefly said, only want to play scribed PAS at a forum in Kuala ised by think-tank Refsa at Publika their part in the democratic govern- Lumpur. Solaris Dutamas yesterday afternoon. ance process and do not seek to This, he explained, was in line with And through governance and gov- force their views - be it political or the changing stance of Islamists ernment, Dzulkefly said, it became religious - on anybody. worldwide, as was observed during the duty of a Muslim to contribute all "It is all about good governance," the Arab Spring in the Middle East. efforts to make the world a better he added. Established before Merdeka as the place for all. Pan-Malayan Islamic Party or PMIP, it Such responsibility is part and par- Read the complete story here: changed its name to Parti Islam Se- cel of the Islamic faith, which facili- http://www.malaysiakini.com/ Malaysia or PAS in the 1970s. tates not only human relationship news/209153 According to the MP for Kuala Se- with God, but also the relationship >> Continued from Page 9 much cheaper. All in all, the three panelists were a Liew also breath of fresh air, very unlike those pointed out who engage in dirty political games Politicians’ conduct a breath of fresh air that to max- that get splashed across our news Joining Nurul Izzah as forum panel- imise profit, some businesses pages every day. These three repre- ist was Liew Chin Tong, MP for Bukit even prefer to employ migrant work- sent a new breed of enlightened po- Bendera and international secretary ers rather than the more expensive litical leaders who are ready to lead for DAP (Disclosure: Chin Tong is locals. This ultimately contributes to thinking Malaysians, not angry mobs. also a trustee of REFSA). He, too, the rising unemployment rate in our Will Nurul Izzah, Liew and Dr spoke with clarity and conviction as country and low-incomes and bad Dzulkefly keep up their resolve to he offered alternative solutions to work conditions. establish a transparent government Malaysia‟s current economic woes. He agreed with a member of the and acknowledge citizen empower- Liew spoke on restoring the coun- audience that one way to reduce reli- ment should the Pakatan Rakyat coa- try‟s economy by reducing the reliance on foreign labour is to pay them lition seize Putrajaya? Only time will ance on cheap foreign labour. The wages comparable to that given to tell if they are immune or susceptible strength of his speech lies in the ex- locals. Without the option of cheap to power‟s tendency to corrupt. amples that ordinary Malaysians can labour, businesses would be forced However, in the present, watching relate to. “Why can‟t garbage collec- to upgrade their productivity meth- the three of them speak inspired tors be paid RM2000 per month?” he ods, and Malaysian workers would confidence – I can imagine them tak- asked. He went on to explain that if not be faced with unfair competition. ing our country out of the rut it is in. Malaysia‟s garbage trucks could be The forum also offered attendees a That is more than can be said about upgraded to make the process auto- rare chance to meet a PAS leader, Dr what most politicians are doing these mated, we would only need to pay Dzulkefly Ahmad. The MP for Kuala days. for one garbage man to operate the Selangor and executive director of I write this not merely to give credit truck, instead of an army of workers PAS‟ research institute clarified that to these three leaders, but more im- trailing along to pick up the trash the party is no longer Islamist, but portantly, to remind those politicians bags. With manpower slashed, the Islamist Democrats. constantly embroiled in wars of sole garbage collector can be paid I thought Dr Dzulkefly‟s speech words that their conduct is not so more, thus making garbage collect- revolved too much around PAS‟ ideo- different from a display of fireworks ing a more attractive job, especially logies and would have preferred him – amusing, but short-lived. Malaysi- for the locals. to address specific economic issues. ans are long tired of explosions, and Liew successfully illustrated that However, the Kuala Selangor MP are finding relief instead in the voic- most of the time, businesses do not must have impressed the multiethnic es of reason and professionalism. need as many labourers as they audience of various ages as Nurul Izzah, Liew and Dr Dzulkefly claim they do. They could reduce the Negara Berkebajikan (Benevolent not only struck a chord with the au- manpower by investing in productivi- State) document which outlines PAS‟ dience at REFSA‟s forum, but also left ty improvements, but there is cur- policies, sold like hot cakes. His own this resounding tune in the hearts of rently little incentive for businesses book, Striving for Change also rec- the rakyat – Malaysia is our home; to do so, especially when hiring a orded a good number of sales. let‟s do our best for her. whole troop of foreign labour is

INFOGRAPHIC | Budget 2013: Toe Rakyat’s Gunde - The Budget is about choices

A BUDGET MUST BE ADHERED TO! Otherwise, what is the point of presenting a Budget in the first place?

1) Was Budget 2012 complied with? 2) Were the goals and targets reached? 3) What are the priorities for Budget 2013 allocations? A. How are these different from Budget 2012? B. Why?

INFOGRAPHIC | Budget 2013: Toe Rakyat’s Gunde - Where does our Budget come from? INFOGRAPHIC | Budget 2013: Toe Rakyat’s Gunde - Till debt do us part

INFOGRAPHIC | Budget 2013: Toe Rakyat’s Gunde - The bitter truth of sweet subsidies

1. What is the total subsidy bill? A. How does it compare to 2012 B. Why is it different? C. Is it too much? Or just right? 2. Are subsidies going to the right groups? A. Who are the biggest beneficiaries of subsidies? B. Do these groups deserve subsidies?

INFOGRAPHIC | Budget 2013: Toe Rakyat’s Gunde - The bitter truth of sweet subsidies INFOGRAPHIC | Budget 2013: Toe Rakyat’s Gunde - Raise dignity, slash subsidies

Recap The subsidy bill in 2012 is expected to hit RM33bn (RM 4, 853 per household). Subsidies take the 2nd largest Budget allocation after emoluments (civil servants’ pay, which amounts to RM52 bn).

REFSA Says | 11 Jan 2012 employment, the choice is really between Need-based affirmative action is unworkable race-based AA or no AA at all. We must now admit a hard truth: affirm- By: Dr Lee Hwok Aun Bumiputeras, since most of the poor are ative action is inherently discriminatory. It ([email protected]) Bumiputra. That is true. An effective need- confers preference toward a beneficiary based AA programme would indeed lift group who are less qualified than other oth Barisan Nasional (BN) and Pakatan thousands out of poverty. But, it will not candidates. This discrimination is warrant- B Rakyat (PR) have advocated that Ma- necessarily result in eliminating the identi- ed by the fact that structural impediments laysia should shift from race-based af- fication of race with economic function. in society had unfairly prevented this firmative action (AA) to need-based af- Bumiputeras would be lifted out of pov- group from gaining the requisite qualifica- firmative action. erty, but might still be under-represented tions, opportunities and work experience The idea seems sensible and equitable. It in high-level occupations. to compete on an equal footing. appears we have finally discovered a won- An example will help. Let us say, for ex- Now, more than 40 years after the NEP derful formula that can shift us away from ample, a needs-based policy targeting the was conceived, is a time for stock-taking the rancourous debates over race-based bottom 40% of households surviving on an and honest evaluation. The chasm be- AA, the New Economic Policy and its suc- average RM1,500 per month is imple- tween those defending the privileged sta- cessors. mented. Let us say we deliver a mix of tus quo and those calling for meritocracy Sadly, the idea that we can replace race- direct cash payments, child-care support must be bridged. Critical issues must be based affirmative action with need-based and education and training assistance with rationally discussed: affirmative is deeply flawed on both con- the aim of uplifting household incomes. Firstly, a thorough review of the achieve- ceptual and practical grounds. In Malaysia, Implemented correctly, effectively and with ments so far, and the costs involved must poverty reduction has been conflated with integrity, let‟s say we are phenomenally be conducted, widely disseminated and affirmative action, which results in the successful and manage to lift incomes discussed. How successful have we been confusion we have today. dramatically. in (1) eradicating poverty irrespective of Most of the poor households that see race; and (2) eliminating the identification improved incomes and living condi- of race with economic function? Bumiputeras tions would be bumiputera, as they Secondly, clear new targets and ap- would be lift- form more than ¾ of this group. But proaches must be set, after consultations ed out of these higher incomes might well with all stakeholders. In this regard, the poverty, but have come from being better skilled foundation for success is a fundamental workers or more productive small shift in attitude and educational content. might still be traders and hawkers. Bumiputeras under- We must start by addressing shortcomings might well still be overwhelmingly in the education system, especially the represented under-represented in high-level matriculation programmes and under- in high-level occupations. challenging environments that most occupations. How then would we increase Bumiputera graduates pass through. Ben- Bumiputera representation in pro- eficiaries must be imbued with self- Affirmative action is principally not about fessional and management positions? confidence and a responsibility to excel poverty alleviation or need-based distribu- Let us say we decide to increase the because preferential treatment will be tion. At root, it aims to empower a disad- number of Bumiputera accountants via a temporary. Blind allegiance to a party- vantaged group through elevating individ- need-based policy. Accounting firms, state seeking permanent patronage must uals from that group to positions in the when evaluating job candidates, would be rejected. upper rungs of the educational and occu- have to verify and evaluate applicants‟ Effective affirmative action demands pational ladders. The framers of the NEP parents‟ income and assets to determine focus on developing capability and self- set out two prongs: who‟s poorer and should be given priority. reliance, especially through attaining ter- (1) to eradicate poverty irrespective of Three major issues surface: tiary education and accumulating work race; and (1) It would undermine a basic foundation experience. (2) to accelerate the restructuring of socie- of functional economies – that labour For AA to be effective, we should select ty to reduce and eventually eliminate the market entry and mobility correspond those within the beneficiary group who are identification of race with economic func- primarily with ability, not need. most capable of coping with the challeng- tion. (2) It would be at odds with the principle es of upward mobility. This is difficult but The second prong corresponds with that adults are independent from their it must be done, and it must be done pro- affirmative action. parents and responsible for themselves. ductively, effectively and temporarily. Over Affirmative action has a specific objec- (3) It would inflict upon the private sector a time, the need for preferential selection tive: to increase the participation of a dis- very complicated and costly process for should diminish, and the groundwork will advantaged group in positions that confer which there is no benefit. In fact, it would be laid for rolling back the AA regime. social esteem and economic influence – for force employers to pursue a very dubious As the debate currently stands, we are example, in tertiary education, high-level and ineffective policy of hiring and pro- locked in a triangular stalemate, between occupations, asset ownership. Bumiputer- moting professionals and managers on those who defend race-based AA regard- as were overwhelmingly under- the basis of socio-economic background, less of cost, those who demand its swift represented in the ranks of university not ability. abolition without thinking of viability, and graduates, managers and professionals, It should now be clear that affirmative those who press for a vague and incoher- and equity owners when the NEP was for- action is unavoidably race-based if the aim ent concept of need-based AA. We should mulated in the 1970s. is to increase Bumiputera representation instead be making race-based AA more PR and BN both claim need-based AA in professional and management posi- effective while preparing to roll it back. focused on the poor will help mainly tions. It is delusional to believe need- based AA can replace race-based AA. In

INFOGRAPHIC | Budget 2013: Toe Rakyat’s Gunde - How can we raise household incomes?

At the end of the day, higher income for Malaysians in a win-win. Taxes are like condominium’s maintenance fees - the more people contribute, the more it benefits everyone. 1) Any steps taken to reduce foreign workers? 2) Any incentive for raising productivity? 3) How will the Budget make vocational work and skilled trade desirable and rewarding?

INFOGRAPHIC | Budget 2013: Toe Rakyat’s Gunde - Putrajaya is controlling too much

INFOGRAPHIC | Budget 2013: Toe Rakyat’s Gunde - Putrajaya is controlling too much INFOGRAPHIC | Budget 2013: Toe Rakyat’s Gunde - Resources down the drain?

1) Are there cheaper, better and safer alternatives to govt’s projects aimed at ‘fulfilling current demands’? 2) Is there any measure to teach Malaysians to be pru- dent with resources, or is the govt cementing a waste- ful mentality among us?

UMNO-nomics excerpt Rational Rationing of Resources

s Malaysia‟s resources start to constantly congested with traffic A dwindle, it‟s imperative for the jams, leading to lost productivity federal government to be more ac- and unnecessary fuel consumption, countable in its management of our not to mention unnecessary ex- increasingly scarce remaining re- penses for Malaysians which could sources. be saved or spent elsewhere in- For one, Petronas cannot be ex- stead. pected to constantly bail us out of Elsewhere, the BN federal govern- catastrophic mismanagement mess- ment claims the massive Pahang- es. Also, subsidies for petrol could Selangor interstate raw water trans- instead be channeled into upgrading fer project is crucial. But such ex- the efficiency of the public trans- pensive, excessive expenditure on portation system, resulting in im- environmentally-damaging infra- Cartoon by Johnny Ong, taken from UMNO proved mobility and productivity structure is really quite unneces- -nomics: The Dark Side of the Budget while reducing resource wastage. sary . We don‟t need to spend bil- UMNO-nomics walks you through the Soaring private vehicle ownership lions when simple practices such as fixing leaking pipes and installing pertinent resource issues Malaysia is is another contributor to resource facing. Educate yourself through plainly- low-flush toilets can solve the prob- waste – with an average of three stated facts and comical cartoons. Find lem as effectively. vehicles per family, the roads are out how you can get a copy on Pg 5.

20 REFSA Says | 25 Sep 2012 Why should politics be black and white when the world is not?

By: Ong Kar Jin of politics a serious impediment to heart. the development of a mature de- Sadly, our mainstream media is not

FEATURED! mocracy in Malaysia. It reduces poli- facilitating this maturation process. The Malaysian Insider, tics to a two-size fits all dichotomy: Part of the internet vitriol directed at Free Malaysia Today, you are either ALL Pakatan or ALL Che Mat following his comments on Malaysia Kini, BN: “My side is always good. My side the Lynas plant were probably be- is always right. The other side is al- Malaysia Today cause he was misrepresented in the ways wrong.” mainstream media. He said that ra- This all-or-nothing approach is diation levels were low but the most he world is not black and white. presumptuous and undesirable. It is critical issue of waste disposal had T Even for the colour blind, there presumptuous as the stifling of dis- yet to be addressed; the mainstream are shades of grey (indeed, as many sent suggests that only the views of media quoted him as saying Lynas as ahem, Fifty Shades of Grey!). One the party leaders are correct and was safe! His clarifications were not of the first things we learn as we important. It is undesirable as it fails carried. In this environment, Pakatan grow up is that things are often not to recognise different opinions on leaders and supporters cannot be simple – nuances permeate our particular issues and prevents con- blamed for being hesitant to express world. structive discourse. contrary views for fear that they will Somehow, however, this awareness The fact is there can be many po- be taken out of context. that the world is not binary is sus- tential approaches to address the As citizens of Malaysia, we have to pended in our perception of Malaysi- social problems of our day. Rational, be discerning in our views and keep an politics. Depending on whether intelligent thinking people would be our minds open. The mainstream you follow the mainstream or alter- expected to evaluate proposed poli- media, sadly, is unlikely to help as it native media, every forthright politi- cies on a case-by-case basis, and has plummeted to the depths of ly- cal participant is pigeon-holed as cannot be expected to always sup- ing about Australian senators and either an anti-government/pro- port everything a particular party is censoring the BBC news feed. opposition troublemaker, or a gov- doing. Constructive criticism must REFSA hopes our alternative media ernment-paid lapdog cyber trooper. be welcomed. Dissenters must not can step up. Do not pigeon-hole Following on from this artificial be labelled as traitors. Pakatan personalities, or label them labelling is the “all-or-nothing” ex- All mature democracies accept as „traitors‟ merely for expressing pectation of the personalities in- constructive criticism as necessary contrary opinions. And when we read volved. Nothing good must be said for improvement. Consider this: Back mainstream media headlines of of the other side, and 100% adher- in 2008, then Democratic US presi- “quarrels and disunity‟ within Paka- ence to your side is demanded. dential candidates Barack Obama tan, do not immediately condemn and Hilary Clinton had differing Pakatan or the personalities but ask The narrow view of politics opinions on how to run the economy yourself “What are the relative merits reduces it to a two-size fits and conduct foreign policy. They of the different views/arguments? all dichotomy. intensely criticised each other‟s pro- Will this help the nation?” posals, and the debates allowed a With questions like this in our consensus on the „best‟ policies to minds, Malaysia will truly be on its A recent example is the comment evolve. So much so that Mrs. Clinton way to a colourful and bright demo- by PAS Member of Parliament for subsequently agreed to serve as cratic future, and not a drab black Hulu Langat Che Mat Che Rosli that President Obama‟s S ec re ta ry o f and white world! radiation levels from the much- State! No one was called a traitor or loathed Lynas plant were low. He chucked into some stereotypical cat- was swiftly bombarded with criti- egory, because the American public cisms including charges that he was recognised the goal of the discourse. paid by the government to lie and he Recognising the colourful views that had turned traitor. Che Mat, a nucle- people have can be bitter, but is ular scientist by training, was blasted timately beneficial! for stating a fact as he saw it. Or For our democracy to mature, we consider the issue of low wages in Malaysians must expand our hori- Malaysia: Those who opposed min- zons and realise that people have a imum wage were swiftly branded as right to express different stands on selfish rich capitalists while those different issues. We may have our who supported it were labeled so- political leanings but it does not cialists. This binary view turned mean we have to support our partic- Twitterjaya into a class warfare ular party blindly ALL the time, for background. Lost in the hostilities we are not mindless automatons! In was a deeper consideration of the fact, like any parent who has scolded issue at stake, and the reasoning their child will know, it is those who behind the different positions. give fair criticism that truly have REFSA considers this narrow view their beloved‟s best interests at

Special Feature | 23 April 2012 INFOGRAPHIC | Woo’s toe real extremnst? Domineering UMNO And the trivial role of other BN parties By: Ong Kar Jin By: Galvin Wong and Dr Ong Kian Ming

ne of the Barisan National (BN) coalition‟s key draws is O that it is the collaboration of several political parties meant to represent the different ethnic groups of Malaysia equitably. Malaysian voters have supported this. In the last general elections, the BN coalition retained federal government power with 52% of the total vote – Peninsular UMNO got 28%; the other BN component parties got 24%.

Both had taken extreme positions, but who punishes the bad apples? Complete analysis at www.refsa.org Full infographic at www.refsa.org

>> Continue from Cover Page immediate profit instead of actually amount each? Or should the amount going out to fish. be calibrated according to need? Restructure subsidies Restructuring subsidies is among 3) In what form should the subsidies the policy measures that will help be given and should there be a time to reach the poor restore fiscal balance and improve limit? Should it all be in cash? Or our dwindling national competitive- should it be in the form of an en- The massive 4-fold increase in ness. We call on both the Barisan Na- hanced social safety net that in- subsidies has clearly not been effec- sional and the Pakatan Rakyat coali- cludes, for example, housing, child- tive. In their current form, the mas- tions to seriously address the chal- care, educational, skills-training and sive amount spent on subsidies is lenge of subsidy dependency in their micro-financing support? And literally going up in flames, while the respective economic policies, and we should there be a time limit for some vast majority of Malaysians remain would be pleased to assist in this or all of these subsidies? lowly-skilled and poorly-paid. 77% of matter of crucial importance. Subsidies should be directed to- our work-force has SPM-level quali- For a start, REFSA suggests a con- wards the most disadvantaged seg- fications, at best; and the bottom structive national discourse that cen- ments of the community, including 40% of our households survive on tres around 3 main issues: single parents and the disabled. Let‟s RM50 per day, as REFSA has high- work together to identify the disad- lighted previously. 1) Who should receive subsidies? vantaged groups that require support All Malaysians? Or just the poor and Even the currently „targeted‟ subsi- and craft subsidy policies that meet marginalised and other selected dies are not going to the right places. their needs, with the aim of ultimate- groups? For example, the cheap fuel for fish- ly lifting as many Malaysians as pos- ermen is misused as some fishermen 2) How much should they get? sible from the need for welfare. choose to sell the fuel and make an Should all Malaysians get the same

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

QUESTION: Malaysians have seen, heard, cheered for and protested against plenty throughout 2012. We've come a long way - together. On which day in 2012 were you truly proud of Malaysians?

Wai Kuan, Chief of Everything Else (CoE) I travelled widely in 2012 to promote our Umno-nomics book. At one event, despite it being a rainy evening, scores of Malaysians, mostly elderly, filled the plastic chairs surrounding the open-air stage outside an Ipoh coffee-shop for a DAP ceramah. I tried to sell the book to an elderly man. He didn‟t speak English, and dismissed my suggestion that he buy it for his children, saying that they stay overseas. “Buy one for them, they might come back after reading”, I said. He gave me an approving smile and asked “Gei duo lui ? (How much?)” May more Malaysians share that spirit of hope and optimism in 2013!

Sandra, Contributing Editor It is no mean feat when you go against the „big boys‟ to fight for change. When the odds are stacked against you, the struggle becomes more urgent. That is why the BERSIH 3.0 rally for electoral reform on 28 April stands out. It was a „battle royale‟, symbolic of the people‟s will and highly significant. Organised by the Coalition for Clean and Fair Elections, the rally saw civil society and Malaysians in general gathered in the tens of thousands in Kuala Lumpur, united by one cause. Elsewhere, all over the country, people gathered to lend support, this writer included.

Kar Jin, Intern Extraordinaire Oct 1, 2012. The day when Malaysiakini won its court case to retain its printing permit for its physical paper division. Freedom of the press is something integral to a functioning democracy, and to see the judiciary make an independent judgment defending the fourth estate was indeed a special sight.

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If you think you are too small to make a difference, try sleeping in a closed room with a mosquito. - African Proverb

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. REFSA Full of flavour, lots of crunch, this is the concise snapshot to help Malaysians keep abreast of the issues of the day. ROJAK This issue, our ROJAK Awards salute the top newsmakers of 2012. By: Ong Kar Jin and REFSA Team To recognise those who have left masters‟ wills. significant marks on society, be In stark they imprimatur-spots or unpleas- c o n t r a s t , ant stains, REFSA presents its own the Crispy ROJAK* Awards to Malaysia‟s top 5 Crackers Cup is newsmakers of 2012. awarded to the Starting off, the Sour Mangoes various bodies Merit Prize goes to the sour- who have made 9 pusses and turncoats we‟ve us laugh in seen these past few years. From spite of, and dear Hassan Ali, to the Terrific sometimes be- Turncoat Trio who handed over the cause of, all the reins of Perak to the opposing side daft comments, via defections, there‟s been no end scandals, dis- to the puckering and posturing appointments, from these „frogs‟. What a bunch of and atrocities. sour grapes mangoes! From the brave Sweet notes are heightened political car- country, in fact, the world, for a just following sour sensations; and toonists of the likes of Zunar and cause. Honourable mention goes to t h e C o o l C u c u m b e r s Johnny Ong, to the netizen-run 8 memes of pages like Curi-curi organisations like Tenaganita, the Award goes to the new political Bar Council and Tindak Malaysia, leaders that we see emerging today. Wang Malaysia, thank you for who advocate, fight for, and defend From Saifuddin Abdullah to Nurul cracking us up, and subtly our rights as citizens of Malaysia Izzah Anwar to Tony Pua, these „cracking‟ irresponsible politicians‟ and turn the spotlight on incidents individuals not only keep cool, fact- heads with wit and humour derived of repression and abuse. Working based minds in fiery debates, but from their (all too many) foibles. tirelessly, while being paragons of also exhibit a willingness to engage Coming up, by unanimous humility, they ensure the weak and in all platforms, be they public fo- vote (alright, maybe just 5 oppressed do not stand alone. rums or social media. Politics is the people), is the Styrofoam Box 4 Last but not least, we have new cool. Bonanzawhich goes to LYNAS for all the Order of the Rubber Band. The Crunchy Jambu Tro- its environmental nastiness and You can have the best rojak phy belongs to the alternative suspicious secretiveness. I mean, 1 sauce in the world, you can have all media, who give airtime to our it‟s not the Cold War; it‟s not like 7 they are building some radioactive the freshest fruits of the rainforest, Cool Cucumbers, whistle-blowers you can have the sticks ready and such as Rafizi Ramli of cows-and- facility for some oppressive, au- the box closed, but without a rub- condos fame and extensive cover- thoritarian government…. ber band, that box of rojak may be age of events like BERSIH which are On the other side of the all for naught. So this award goes peripheral in the world of the main- Styrofoam fence, is the Satay to you, the Malaysian voter. We stream media. For bringing to the Stick Honour, and this is be- 3 know you are flexible, we know you forefront the news that matters, stowed upon the Anti-Lynas move- are adaptable, and we know you this award goes to alternative me- ment, for, literally and figuratively, recognize that everything has a dia outlets like Malaysiakini. walking the talk. These ordinary but limit. So make your choice judi- gutsy people banded together and When it comes to the Limp ciously, cast your election vote walked 300km in 2 weeks on their Kangkung Gift, there is none wisely, and take responsibility in Green March for a healthy and safe more deserving than the protecting and preserving our won- 6 environment. India had its Salt mainstream media. In fact, the derful, mixed-up, diverse country. mainstream media wins hands March, Mao Ze Dong had the Long And that‟s a wrap. down (or should we say butts up?). March, now Malaysia has its own Censoring the British Broadcasting Green March. The walk to freedom Corporation (another worldwide is long indeed. *ROJAK Awards has neither interna- first for Malaysia, we believe), devi- The Rojak Sauce Saluta- tional accreditation nor the endorse- ously and deliberately mixing up tion goes to the BERSIH move- ment of local authorities; it is a purely the words Islam and Scientology in ment, for bringing all the dis- home-grown, cottage industry to give 2 due recognition to all deserving award- Australian Senator Xenophon‟s parate flavours of Malaysia togeth- ees, worthy, or unworthy, of mention. speech, calling crime a perception er. From old to young, from Malay We await an „entrepreneurship‟ award problem… there seems to be no to Chinese to Kadazan, BERSIH for our efforts. limit to their ability to bend to their united Malaysians all over the