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“Barisan Nasional is finished if Pak Lah is not replaced by end April 2008”

March 29, 2008


March 28, 2008

by Matthias Chang

I just could not believe my eyes, when I read in the New Strait Times newspaper, business section – Business Times – that Bank Negara projects 5.6 pc growth this year. Bank Negara Governor, Tan Sri Dr. Zeti Akhtar Aziz was quoted as saying:

“We have done several simulations of different packages which can be implemented in the event of any significant slowdown, which we do not see on the horizon at this point in time.”

I am sure that the “simulations” were all done and tested prior to the 12th General Elections of March 8, 2008. So they are no longer valid as they failed to take into account the post-election reality.

Bank Negara must be wearing blinkers or under directions from Pak Lah and his spin-doctors to spin a story that all is well and good. The observation that no significant slowdown can be seen on the horizon at this point of time can be tested by reviewing some independent observations.

Spiegel reported on Wednesday, March 26, 2008 that:

“Germany and other industrialised countries are desperately trying to brace themselves against the threat of a collapse of the global financial system. The crisis has now taken its toll on the German economy, where the weak dollar is putting jobs in jeopardy and the credit crunch is paralyzing many businesses.”

Why is the Governor of Bank Negara playing down this acknowledged global financial meltdown – the financial tsunami? Is there a conspiracy of silence among the world’s central bankers?

Spiegel has let the cat out of the bag when it reported further that:

“For some time, there has been a tacit agreement among central bankers and the financial ministers of key economies not to allow any bank large enough to jeopardise the system to go under – no matter what the cost. But on Sunday, the question arose whether this agreement should be formalised and made public. The central bankers decided against the idea, reasoning that it would practically be an invitation to speculators and large hedge funds to take advantage of this government guarantee. Everyone involved knows how explosive the agreement is. It essentially means that while the profits of banks are privatised, society bears the costs of their losses. In a world in which the rich are getting richer and the poor poorer, that is political dynamite.”

There you have it – the global conspiracy of silence by central bankers and finance ministers. Yet, it is I that has been accused of being a conspiracy theorist.

The Malaysian Ticking Time Bomb

Besides the impending global financial tsunami hitting our shores in the very near future, Malaysia is waiting for a ticking time bomb to explode that will leave our country totally defenceless.

No one has even given a thought to this time bomb. What is this time bomb? It is the total dislocation and disruption of the entire 9th Malaysian Plan.

How can this be? Simple! The informal Barisan Rakyat has captured four critical states, more precisely the four critical economic states of Penang, Perak, Selangor and Kedah (part of the rice bowl of Malaysia) and retained Kelantan. There used to be a MIMALAND (Mini Malaysia) in Gombak. But that was a mere tourist attraction. These five states is the real deal, the Real Mini Malaysia, without which the BN government is useless, a toothless tiger.

The 9th Malaysia Plan (and all previous Five Year Plans) envisages that a substantial portion of the RM200 billion budget spread over five years will be allocated to the “state economic engines” of the Malaysian economy, namely Selangor and Penang – the crown jewels. When combined with Perak and Kedah, these states provide the crucial infrastructure, human resources and more importantly the critical mass for the massive investments needed to prepare the economy to meet the impending threat of the global tsunami and at the minimum, to enable the country to float just above the water till the tsunami rolls back to deeper waters.

Just a few days ago, Pak Lah acknowledged this stark reality and conceded that some of the mega-projects will have to be scaled back. Pak Lah and the corrupt and greedy politicians of the Barisan Nasional cannot bear the thought that they will not be in control of these massive investments in the states of Selangor, Perak, Penang and Kedah.

The 9th Malaysian Plan cannot be implemented successfully without the close cooperation between the central Federal Authority and the state counter-parts. This is a given ; the BN state partners-in-crime to loot the national treasury is absent. Pak Lah and his family have the money but the same cannot be diverted to the coffers of cronies at the state level, when they are no longer in power and have no control of the state governments.

The nightmare for the Barisan Nasional is not that they lost their 2/3 majority in Parliament and the massive reduction in the popular votes, but that they can no longer enrich themselves as before.

The whole system of patronage that confers absolute power to the President of UMNO and Prime Minister has been rendered ineffective and the rewards for a subservient power hierarchy cannot be guaranteed. Pak Lah and his goons will no longer be able to wield the threat that should the leaders of the political multi-level organisation fail to toe the line, the gravy train will not stop at their stations. The gravy train stations are now in control of Barisan Rakyat!

So long as Pak Lah and his family are control of the levers of power and the treasury, the economy will be in a gridlock and the entire system will come to a standstill. Checkmate! There are enough reasons to remove Pak Lah as demanded by the electorate in the just concluded elections. But the nail that hammers in the lid of the coffin is the consequences of this stark economic reality.

The Prime Minister who replaces Pak Lah must be one who is without controversy, baggage and more importantly must be acceptable to the leaders of the Barisan Rakyat. This will provide the minimum basis for cooperation between the two “Barisans”. And such a leader will then be able to reform the present system and save the economy from dislocation and disruption and the unimaginable consequences that will assuredly flow from the present gridlock.

Time is against us

Pak Lah must be removed when Parliament convenes, if the Barisan Nasional Members of Parliament have the interest of the country at heart and not their warped interest for power and self-enrichment.

No one to date has the guts and the convictions to take on Pak Lah and his goons except Tengku Razaleigh. He has offered to serve the country. He should be given a chance.

Tun Dr. Mahathir Mohamad has also called for Pak Lah’s removal. Members of Barisan Nasional must heed their call to remove Pak Lah. The nation must ensure that the momentum generated by the results of the General Election must gather speed and force to sweep away the political debris of Pak Lah, his family and his goons!

And God help us and Malaysia should we fail!

From → Malaysia Upclose

  1. Gina permalink

    Matthias, stop talking cock. You have no credibility and neither does your MCA (or Manay Chinese Arseholes) party. Of course the Governor does not know what he is talking about. The central bank has always been sleeping on the job. The only progress we got was because of the oil. When that runs out (and it WILL), neither the central bank not anyone of your party will know what to do. I ‘m sure you will also not be around.

  2. Taufiq permalink

    I am no economist. Although I did score an “A” for the subject in “A” Levels… The examiner must have mixed up my answer booklet with someone else’s. Well, that’s how the world works sometimes. Its can be unfair. Most people however clutch the straw of the law of averages and hope that hard work and talent ultimately pays off, give or take the odd screwball pitched by Fate.

    Economics is easy really. Its all about supply and demand, my economic tutor, Mrs. Helena Wong, once said. The problem is what is being supplied and what is being demanded has for the past hundred of years drifted into the realms of paper value, whether we are talking about bank’s rights to loan its capital times X amount as permitted by the law, layering of umpteenth papers on housing mortgages, bonds, derivatives, whose dubious value is connected by some financial contortion to an already dubious principal value. And of course the overwhelming monetary system of fiat money now operating from timbuktu to anchorage.

    So, ultimately what we have is an economy whose value is based upon people’s perception of what is valuable. And we are aware how fickle the human heart is at valuing what is valuable. Gee whiz, honey… I don’t love you anymore… we have drifted apart… I have fallen out of love with you. Yeah, Wall Street has filed divorce papers against her subprime spouse. And now every investment house is looking into their books and wondering… who will hold the baby, this time?!

    My suggestion is just flick a coin. If tails you lose, tough luck! This is the game we are in, my friend. Although we never had a choice to opt in or not. Life sucks at the bottom of the economic world order.

    And Zeti? Well, who am i to comment on the elevated discourse in the rarified air high atop Bank Negara. But whatever she says, we hope (!!!) the ruling elite will bear in mind that however high their offices may be, they still need to trudge through a dungheap if they permit (yes, permit) the economy of Malaysia to become a pile of cattle manure.

    Unless, of course they already have residences in Australia, US, Europe, India, etc…

  3. Notty Gurl permalink

    I am also no smart ass in economics but I do know when someone is lying. I saw Zeti giving the press conference the other day annoucing the above and it is as blatant as the sun will rise the next day that she is lying. All the stammering and uneasy body language tells you that she is being told what to say. Even her face looked like she is about to cry!

    Yup, GOD help us all….

  4. Something to think about, this. Alarming enough for us to do something about it.

    Of course, the gluttons will now have to scale back the projects because there will be little in it for them.

    This election has unmasked so many men and women in power for the scoundrels they are.

    thanx ewoon.

  5. Matthias is Mahatir-speak. Period.

  6. San permalink

    New Cabinet:

    Prime Minister – Anwar

    Deputy Prime Minister – Lim Kit Siang

    Culture Minister – Farish Noor

    Defence Minister –

    Education Minister – Nga Kor Ming

    Environment Minister – Teresa Kok

    Finance Minister – Tony Pua

    Foreign Minister – Ramasamy

    Health Minister –

    Home Minister – Ronnie Liu

    Information Minister – Jeff Ooi

    Law Minister – Teng Chang Khim

    Manpower Minister –

    Sports Minister –

    Technology Minister –

    Trade Minister – Khalid

    Transport Minister – Liew Chin Tong

    (Penang Chief Minister – Lim Guan Eng)

  7. I think Pak Lah will not be replaced by the end of April……. There is no direction or intiatives that point to possibility of any change of leadership by end of April.

    The situation is getting out of focused… I agree with Mr. Taufiq comment on economy of the world.

    The survival of Malaysia economy can be balance with our Petroleum and Palm Oil product.. we also still have a lot of tin to mine, if the government wanted to revive the industry.

    But Malaysia need to reform its economy and must focus on fundamentals to streghten the economy… Economy base on paper is the most dangerous things and may eventually lead to a economy burst….

    Maybe the government need to focus on core fundamental value and reduce “smart” businesses that trade on papers.

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