Friday, August 16, 2024

Anwar's 'Foolishness'? - Make people 'happy now' even if we increase Government Debt thinking must be abandoned? Reduce DEBT now - spend only what the government earns

Malaysia is in a precarious financial position. Annually our countries earnings is NOT sufficient to cover all the needed expenses of the Federal Government - hence deficit budget, that leads to the Federal Government taking out LOANS - hence, increase of DEBT... and now the Federal Government Debt is about RM1.5 Trillion or more(we are UNSURE of this - What is the actual Federal Government DEBT? Does this figure include other Liabilities? Does it include the amount the Federal Government stood as GUARANTOR to loans taken by other entities? 

See earlier posts:- 

SORRY - Malaysia's DEBT increasing as 'bad' Finance Minister continues borrowing? - hence increasing the amount of DEBT, increasing annual debt servicing cost? 

Malaysian Federal Government Debt? How did Anwar managed to reduce the DEBT? Was it paid off or simply transferred to another? TELL us 

Anwar, has our Federal Government debt increased from RM1.2 Trillion to RM1.5trillion? Change Finance Minister? What is OUR DEBT now - be honest...

We had once a Prime Minister, who was keen on the largest and highest structures - the Flag Pole, The Twin Towers, Dayabumi, etc...

And, now we may have a Prime Minister in Anwar Ibrahim, who despite Malaysia's more or less 1.5 Trillion Ringgit Debt, wants to make history with the HIGHEST PUBLIC SERVANT PAY RISE  - and at a time when Malaysia is not even making enough annually to cover expenditure. In 2023 itself, rather than reducing DEBT - Anwar still borrowed more (about RM93 Billion). He wanted 'praise' for his achievement of borrowing less compared to 2021 and 2022(where about RM100 Billion) was borrowed - but was that not during the Covid pandemic?

WE DO NOT WANT A PRIME MINISTER THAT MAKES PEOPLE 'HAPPY' - and spends monies Malaysia does not have by BORROWING. This is what caused that RM1.5 Trillion DEBT in the first place. Anwar Ibrahim too has been INCREASING Malaysia's DEBT - what he did was merely REDUCE our annual borrowing, from 100 Billion(in 2021 and 2022) to RM9O Billion - This is NOT an achievement BUT a failure. Our DEBTS are increasing - and so too will our annual debt servicing obligations. So, just a slower increase of our DEBTs.

In 2022, we spend RM118 Billion - in 2023(under Anwar), we spend about RM123 Billion for civil servants and retired civil servants - Anwar's Failure? A bad Finance Minister and PM?

We cannot afford to spend to 'make people happy today' when the BURDENS and risk remains (Nope, increases) - Our future generation will be BURDENED by our 'extravagant' spending and borrowing today. 

Public servants wages may need to be increased for especially the B40 and the lower M40 group in light of the depreciation of value of the Ringgit  and the increased COST OF LIVING - so, just increase this group's salary only so that they can survive, but not the salary of public officers who are already earning more than enough..

Malaysia has got one of the HIGHEST number of public officers - about 1.7 million(4.5% ratio in reference to population numbers), compared to Singapore's 1.5%, Hong Kong's 2.3% and Taiwan's 2.3%.

Bureaucracy. Malaysia's bureaucracy is one of the biggest in the world, with 1.7 million civil servants to a population of 32 million, a ratio of 4.5% compared with Singapore's ratio of 1.5% civil servants to total population, Hong Kong's 2.3% and Taiwan's ratio of 2.3%.

Wonder WHY the number is still so HIGH? After all, Malaysia reduced the need for civil servants when it privatized electricity, water supply, postal services, sewage, etc...

Malaysia also went out and outsourced a lot of government work to private contractors - cleaning services, security and a lot of things...So, all those public officers were absorbed into the new companies...or lost their jobs.

So, why exactly is there still a need for SO MANY Public Officers in Malaysia - has the employment and maintenance because of NEED or for another reason. In the past, besides FELDA, the public officers were a 'VOTER BANK' of the incumbent government BUT all that changed in GE14 - Public Officers acted smartly and voted taking into account the Best Interest of Malaysia and Malaysians, not simply themselves. Will Anwar's plan to increase wages of Public Officers by 10% or more(the highest increase since MERDEKA allegedly) help PH in the upcoming GE? I do not think so... 

Public Officers - Emoluments and Pensions are a BURDEN to the nation - as it is already a HIGH component of government spending. If that is reduced, monies could be spend for all Malaysians - in difficult times, SUBSIDIES for food and necessary items helps everyone...

Remember, Public Officers get annual increments and bonuses, and when they retire they get PENSIONS until they die, and their surviving spouse dies. Hence, this is a Federal Government expense that will always be there, and ever increasing. Even years from now, we will still be blaming Anwar for the mess he created...

The largest component of OE is emoluments, accounting for 30.4% or RM91.3 billion. The outlay for emoluments is expected to increase  by 4% due to special annual increment and  cash assistance for civil servants disbursed in  January, April and August 2023. Retirement  charges is estimated to increase by 2.2% to  RM32.1 billion with the number of pensioners  exceeds 936,000 recipients. 
How much do we spend on emoluments(salary,etc) of Public Servants? RM91 Billion Plus (2023)

How much do we spend on PENSIONS of former Public Servants? RM32 Billion Plus

How much do we spend on DEBT servicing? RM46 Billion Plus

If the salaries goes up - then the Federal Government's annual obligations to pay for emoluments also rises. Likewise pensions. And if Malaysia has to borrow more - then DEBT Servicing also rises..



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSEQUENCE - not much left for schools, hospitals and other matters that will BENEFIT ALL MALAYSIANS - Does Anwar care only for PUBLIC SERVANTS - and not other workers >> We shall see soon how much is the NEW MINIMUM WAGE. 

Really, Anwar should not be the FINANCE MINISTER - because the FINANCE Minister that is good will TRY to reduce our RM1.5 Trillion Debts(it went up RM90 Billion in 2023, and it will continue to rise in 2024 ..

Anwar wants 'praises' from certain quarters - this time it is the 1.7 million public officers.

So, are you cutting fuel subsidies and other subsidies to pay Public Officers more? EXPLAIN first where the money is coming from that justifies such a big financial obligation now and for all time. Once salaries are INCREASED, it is almost impossible to reduce salaries...

RAISE Salary is GOOD but just raise the wages of the lowly paid to maybe RM3,000 per month. Likewise, increase MINIMUM WAGES to RM3,000 too... (and this increase in Minimum Wages will not cost the government anything)

What does Anwar hope to achieve? A 'big thank you' that will translate into VOTES for Pakatan Harapan? Too bad, now Malaysians are smarter and 'vote buying' will not work as it may have in the past..

The indications are CLEAR - Anwar and Pakatan Harapan's support is eroding fast - ...


1.6 mil civil servants in for good news tomorrow

KUALA LUMPUR: Some 1.6 million civil servants are in for good news tomorrow when Prime Minister Datuk Seri Anwar Ibrahim announces the details of the civil servant salary adjustment mechanism.

The prime minister is expected to make the announcement at the 19th Civil Service Premier Assembly  (Majlis Amanat Perdana Perkhidmatan Awam) event which will be held at the Putrajaya International Convention Centre.

This salary raise , which is expected to be between 15 and 42.7 percent will put smiles on some 1.6 million civil servants, allowing them to alleviate financial pressures and reduce the burden of the rising cost of living.

This announcement is highly anticipated by the public sector workforce, who have not received a significant salary raise for many years.

Public Service Department deputy director-general (operations) Datuk Mohd Shaiful Ibrahim had earlier said all civil servants will receive new salary rates starting in December.

He said a calculation service will also be provided at the event for those who want to calculate their salary increase. - NST, 15/8/2024

 

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