PRESS STATEMENT

Government Clueless and Can No Longer be Trusted? - Dr. Jeffrey

Kota Kinabalu: While Malaysians rejoiced temporarily in welcoming the new year, the country continued with its downward spiral with the federal government showing that it is clueless and having lost touch with the common people said Datuk Dr. Jeffrey Kitingan, STAR Sabah Chief, noting the various statements by the Ministers and the police big-wigs and the ad-hoc announcement of the 11 austerity measures by PM Najib culminating in the peoples protests amid celebrations to welcome 2014. The government has failed the people and its recent policies on reduction of subsidies and price hikes are nothing more than stop-gap measures aimed at window-dressing the deep rooted economic problems caused by corruption, mis-governance, wastages and excessive spending. The subsequent statements, promises and after-thought so-called austerity measures prove that the policies have not been well thought out and are in reality mis-steps. These mis-steps have caused untold damage to the people which the Umno/BN government had promised to take care of in its PRU-13 BN Manifesto. The damage is done and it may be too late. Creating a Laboratory to study on Living Costs and promising to reduce the impact of rising prices is not prevention. Neither is it a cure of the ills of the people caused by rising prices. Prices have already risen and now the government is only trying to rein in the price increases but forgotten that it is the government that caused the price increases in the first place. It is just like giving poison to the people and then giving pain-killers without curing the poison. The austerity measures announced by the PM confirms that the government did not consider austerity measures before the price hikes. These measures including taking it out on civil servants are meaningless without targets and objectives. In any event, these so-called savings are so miniscule that it will do nothing to reduce the national debt or excessive government expenditure. Similarly, the announcement by the DPM to form a committee to re-evaluate the rationalization of reduction of subsidies shows that the government decided to reduce subsidies without studying the impact of such a policy. The government has got it wrong every step of the way. More laughable are the reasons advanced by the police and Minsters on protests by the people against the price increases. Rising crime has shown the inability and ineffectiveness of the police which is partly caused by incompetence and largely due to the deployment of police resources for political purposes to look after the interests of Umno/BN at the expense of safeguarding the people. The polices reasons for the protests and their actions before the media and television further confirms their shortcomings. ../2-

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There is no denying that the price increases and the rising costs of living are caused by the government policies. It seems that only the leaders and the Ministers are not aware of this cause. The most affected are the ordinary people, perhaps up to 95% of the population, and there are no solutions in sight. Only some comic relief is given with moronic statements like no complaints by the people mean that they support the price hikes. Can the people be blamed for protesting the price hikes in the circumstances? asked Dr. Jeffrey. The saddest part is that of the reactions of the Umno pack and Umno-linked organizations with the numerous unwarranted police reports. These blind followers and wannabes heroes may have their reasons for their personal vested interests but it shows their low intellect. Worse to follow, is the inelegant silence of the Umno leaders and their indirect condoning of these foolish acts of the Umno pack. What these Umno pack, blind followers and supporters of the Umno/BN leaders failed to realize is that the Umno/BN federal government failed to honour their promises given in the Umno/BN Manifesto during the May 2013 general elections? The PM made a grand live-telecast of the launch of the BN Manifesto lasting more than 3 hours. The PM and his Umno/BN entourage then went round the country on its Janji DiTepati tour and canvassing the promises to reduce car prices, reduce tolls, no petrol price hikes, etc. etc. In less than 6 months, the federal governments policies went totally against the BN Manifesto. Promise after promise were broken. No wonder, in the Peninsula, they referred to the tour as the Janji DiCapati tour. As for PM Najib, he should seriously consider changing his advisers and many of his Ministers. If not, dont be surprised that there will be a change of the Prime Minister soon. All in, there can only be one and one only conclusion. The Umno/BN government can no longer be trusted anymore. More so, in the context of Sabah and Sarawak, the colonies of the federal government, which is not a true federal government of Malaya, Sabah and Sarawak.

Datuk Dr. Jeffrey Kitingan Chairman STAR Sabah 02 January 2014

Najib's New Year Pledge Over Rising Cost Of Living

KUALA LUMPUR, Dec 31 (Bernama) -- Prime Minister Datuk Seri Najib Tun Razak today gave a new year pledge to minimise the impact of the rising cost of living on the people. "...where necessary, we will fine-tune government programmes so that the effect on household incomes is not too great. "We will put in place mechanisms to cushion people from the rises in the electricity tariff and toll fares, and the Performance Management and Delivery Unit (Pemandu) is coming up with new ideas to ease the cost of living

pressures," he said in his new year message on his blog, www.1Malaysia.com.my. Having announced yesterday 11 measures to reduce public sector expenditure in the new year, Najib, who is also the finance minister, said the government would also try to ensure that the increases are proportionate. For example, he said, the rise in fuel and electricity prices will have an effect on people's spending power but, despite the increase, the government still subsidises petrol and electricity bills. As for the recent rises in property assessment rates in Kuala Lumpur, Najib said that after listening to the people's concerns, the rates were reduced by two per cent and extra rebates were added for disabled property owners, retirees and owner-occupiers. The prime minister said the government would not allow costs to rise without supporting those who needed help most. "From last week, 7.9 million recipients in households earning under RM4,000 per month are eligible to apply for new BR1M (1Malaysia People's Aid) payments. We are opening new 1Malaysia shops to help with the cost of daily goods, and new 1Malaysia clinics to provide affordable healthcare. "Altogether, next year, the government will spend some RM42 billion on subsidies, almost as much as we spend on development," he said. While the government rationalised subsidies, it has introduced cost-cutting measures to reduce public expenditure. Najib announced the 11 measures yesterday, among which were reducing electricity costs in all departments by five per cent; tightening the rules on hiring consultants and cutting toll and entertainment allowances for ministers and certain category of senior civil servants. "We are also reaffirming our commitment to tackling corruption, cutting government wastage and improving procurement; putting government tenders online to make them more transparent and working to better realise the value of government assets," he said. Najib said he was determined to do the right thing for the country and the people because, by acting responsibly now, the government would strengthen Malaysia s economy in the long term and the benefits would be felt much more widely. "As we prepare for the new year, it is also a good time to remember why we are making these changes. They may not be popular in the short term, so it would have been easier to keep the status quo. "People will say that too many costs are rising and populist policies will seem attractive. But the government has to take action now," he said. By rationalising subsidies, Najib said, the country would strengthen its fiscal position and allow the government to focus its spending on development projects, including health and education, and move towards a balanced budget by 2020. "By taking the steps needed to make Malaysia s economy stronger, we are not only protecting our nation against financial crises, we are also opening up new jobs and new opportunities. "People will be more likely to invest in Malaysian companies, build Malaysian factories, and set up new businesses. This in turn will drive economic development, helping to improve the people s quality of life and putting Malaysia in a much stronger position in the long run," he said. Najib said that as 2014 begins, the government must continue to build the foundations for Malaysia s continued success for a stronger economy and a more unified nation. "If we are to be responsible in government, it sometimes means taking difficult decisions which are unpopular. Leadership is about looking to the long term and about doing what is right, not what is popular," he said. He said the government would not sign off any subsidy cuts or rate rises that were not absolutely necessary because subsidy programmes have benefited people for many years. "But as our population grows and our nation develops, they are no longer sustainable and it is time to move on. We need to rationalise subsidies and target them to those in most need. "The government commitment to development expenditure has grown and we have to manage our fiscal position to ensure the stability of our economy," he said. Najib noted that the recent financial crisis showed just how serious the consequences were to nations whose finances were not built on solid ground and if investors and agencies decide countries cannot pay their debts, the cost of borrowing money spirals out of control.

Without access to credit, there would be huge implications for a country and its people, he said, adding that for example, more than half of young people in some European countries are unemployed. "Under Barisan Nasional s stewardship, Malaysia has grown significantly; per capita income has increased by 49 per cent during the last four years. We will take the difficult decisions needed to keep our borrowing costs low and maintain investor confidence, which is crucial to keep Malaysia s economy strong and growing. "We must accept that we have to make changes to keep our finances under control and we must balance the programme as much as possible, so that the burden is spread," he said. Najib said he also believed that Malaysia should reaffirm its commitment to the peaceful co-existence that defines the nation and must be active in the pursuit of unity because the country's stability and progress depend on it. "I believe Malaysia is strong enough to survive heated debate. With time, the divisions will heal, as we see our nation continue to grow and develop, and as we realise that those we disagree with are still our neighbours, our colleagues and our friends. "That is why I have established the National Unity Consultative Council, which will report to the Cabinet with recommendations on what we can do to bring Malaysians closer together," he said. Najib said his priority was to secure the continued peace, stability and progress on which Malaysia s future rests. "Rebuilding our national unity and encouraging public debate based on respect is a great part of that. As the new year unfolds, you will hear more from my government about how we will do so," he said. Najib said he believed that 2014 would be a year of great opportunity and the economy, which has weathered the storm of the financial crisis, is predicted to grow by 5.5 per cent. "As the Visit Malaysia Year gets underway, we will see a concerted push to bring new visitors to our beautiful country. New businesses will open, and new investments will be realised. "Yet behind these headline figures, I know that some people are concerned about 2014, worried that as we seek to balance the national budget, household budgets will come under pressure. "I understand and sympathise with these concerns. Hard-working people will feel the impact of rising costs. And when the media is full of red numbers and price rises, it can seem as though 2014 will bring pain without gain," he said. -- BERNAMA

2014 Brings Respite For Malaysians

By Erda Khursyiah Basir KUALA LUMPUR (Bernama) -- Malaysians will be entering 2014 with the good news that the government will review the decision to rationalise subsidy so that it can truly ease the burden of the target group. Therefore, at least for the moment, Malaysians need not worry on the prospect of incurring higher cost of living in 2014 due to the rise in the price of goods and services. The impending hike on electricity tariff and toll rates and probably fuel in 2014 in the government's efforts to rationalise subsidies has raised concerns of the general public and interest groups who fear it will be to much to bear. However, Deputy Prime Minister Tan Sri Muhyiddin Yassin on the final hours of 2013 assured that the government subsidy would be looked at in a more holistic manner in efforts to reduce the burden of the people, especially the target group. And just a day earlier Prime Minister Datuk Seri Najib Tun Razak announced 11 cost cutting measures for the public sector effective Jan 1 2014, indicating the government is looking into other options in cutting costs. A SPECIAL COMMITTEE NEEDED Even if there was rise in prices, it was only proper that the government establishes a special committee to monitor the prices so that the people were not overly burdened, said Malaysian Muslim Consumer Association's (PPIM) Chief Activist Datuk Nadzim Johan. He pointed out that the rising prices is a major issue to the average consumer and could backfire on the government if not addressed properly.

"Consumers are naturally sensitive to spikes in prices. We can accept when the price of an item goes up but if it is a series of hikes it may not be easy to swallow. "So don't be surprised if the people lose faith in the government and the government is set to face repercussions when those with vested interest capitalise on the price hike issues," he told Bernama. PUBLIC DEEPLY CONCERNED According to Nadzim the rise in prices posed a big burden especially for those in the middle and low income bracket. "The people find that this is not the right time for price hikes. Prices of sugar and fuel have gone up and we can accept that but how about the increase in cable TV bill, and the bus and LRT fares, it would further burden the people," he added. Meanwhile, Universiti Utara Malaysia's (UUM) Politics and International Relations analyst Md Shukri Shuib noted that the rasionalisation exercise had to be carried out on the necessities and the living cost, and not on the subsidies that might put to test the public's emotional rationality. DON'T SAVE, SPEND PRUDENTLY "The present government is only thinking of saving costs while during Tun Dr Mahathir Mohamad's administration though the country faced economic crisis, he made sure the government spent instead of tightening its belts. Because this is how the country could benefit numerous sectors that could pay back to the national economy. "The government should observe prudent spending instead of tightening the belts. Even if the government is to save it could be done in other areas instead of rationalising the subsidies for the people," he said. Md Shukri noted that the government had to rationalise with the excesses of the capitalist elite beforehand as this group does not feel the pinch compared with ordinary citizens when the prices go up. If the government is to make announcement on something like price increase, they have to look into the right time to introduce such measures and should understand the public psychology. "Looking at the current scenario, the government not only needs religious and economic advisers but also have to appoint psychologists in helping the government run the country and understand the needs and the aspirations of the people," he said. -- BERNAMA