Time to move forward: In less than a year, we will be voting for new Dewan Rakyat members, but some of the current batch of MPs are still squabbling over government leadership posts instead of dealing with the urgent economic problems. – FAIHAN GHANI/The Star.

TALK about being deluded – some of our politicians have turned it into an artform. We surely can’t be blamed for doubting that they’re clued in to our pressing concerns, or worse, even bothered about them.

While the rest of us struggle with the increasing cost of living, we have politicians squabbling over filling the Deputy Prime Minister position.

Realistically, do the rest of us even care if there was indeed a promise made to appoint someone to the post, especially when we’re barely a year away from the “expiry date” for the Dewan Rakyat members?

And even if there was such an agreement, would it even be valid, knowing the minute relevance to a political agreement, where accountability and integrity aren’t top essentials?

Now, that explains why the Yang di-Pertuan Agong has always insisted on meeting the Members of Parliament in person each time they sign a statutory declaration to back a leader.

It’s no longer news that some of them have changed their minds along the way, turning the SDs into worthless pieces of scrap. Conveniently, some have even denied putting pen to paper.

So, if SDs have no value, what more an agreement for a DPM.

More incredible, there are now allegations that the signatories of the agreement had signed it without the knowledge of their party heads.

Either these party leaders have suddenly developed dementia, intentionally or otherwise, or their senior leaders have sealed deals behind their backs.

PAS president Tan Sri Abdul Hadi Awang said he wasn’t aware of the agreement to appoint a DPM from Bersatu while the party’s secretary-general Datuk Seri Takiyuddin Hassan has admitted to drafting the agreement.

Umno leaders said they had no idea that vice-president Datuk Seri Ismail Sabri Yaakob had made his stand on the issue as PM.

If it’s confusing to the rakyat, as a consolation, at least, we know the respective top party leaders are, likewise, in the same boat.

Here’s the point. The rakyat doesn’t give two hoots. After all, we’ve been suffering from political fatigue.

All these political aspirants who want to be PM or DPM have not made any constructive proposals on how they intend to tackle the inflationary trend, depleting foreign reserves and sustaining the subsidy bill.

Perhaps some of us missed their clever speeches.

But have you heard anyone pitch how we can increase our food products, especially from the agri-industry sector, and how we need to strengthen our food security policy and even develop our own food safety law?

Many related issues on food security have emerged, such as food price hikes, and shortage of essential foods including oil and chicken.

Yes, the Prime Minister has said the Economic Action Council has discussed food security, simplifying business procedures in Malaysia and addressing the skilled workers shortage in the electric and electronic sectors.

It was heartening to hear the PM speak about the involvement of Felda in food security last week.

But to ensure food security, Malaysia needs to galvanise the nation. For example, the Singapore Food Agency adopts the strategy of “three food baskets” – the foremost being the diversification of food sources including boosting local food production through funding for agriculture research and technology adoption, creative planning of farm spaces and efforts to drum up community support for local farmers.

Although Singapore is a tiny country with only 1% capacity for food production and over 90% of food imported, it has managed to generate public interest, concern and commitment to food security.

Some may argue that Singapore is hardly a good example as it can’t rear its own chickens and eggs but it has managed to steer national interest and a narrative.

Across the world, the Covid-19 pandemic, disruptions to food supply chains and now, the Ukraine War, have all wreaked havoc on food supplies, and our weakening ringgit can only mean our food import bill will balloon.

Contenders for the Prime Minister’s job in Britain must talk about how they can take the country forward amid high inflation and the tough tax laws there.

They also want to project to their countrymen that they are the ideal candidates to take the nation forward.

It’s fair to suggest that Malaysians don’t see any inspiring, progressive and competent leaders who can promise us a brighter future and take Malaysia to greater heights.

Leadership is surely lacking in Malaysia, although our politicians would like to think they are leaders. Of their own respective political parties, perhaps.

The issue here isn’t filling a vacancy for the DPM post but a void for a leader who can command the respect, confidence and trust of the people – a national leader who can lead us, and one who genuinely represents the interests of all Malaysians, regardless of their race and religion.

Diversity is to be embraced, practised and celebrated every day, and not presented merely as a hollow message drafted, or worse, cut-and-pasted by a press officer for a particular festival.

Perhaps we shouldn’t wait until the next general election before we begin our own elimination process for candidates who don’t even deserve our time.

High prices: The weak ringgit has led to the rising cost of imported goods, especially food. – GLENN GUAN/The Star

THE coming months will be rough. No one knows for sure how long it will last as the world grapples with inflation and the prospect of a global recession.

It has hit nearly every country in the world and Malaysia hasn’t been exempted.

Politicians who’ve called for street demonstrations protesting the rising prices of essential items or to demand a return of subsidies are just being opportunistic.

And it’s not because they have any real solutions to resolve the economic headaches either.

These politicians know the public is upset, even if the people are aware of the effects of the Ukraine war and supply chain disruptions.

Last week, Bank Negara Malaysia decided to increase the OPR (overnight policy rate) by another 25 basis points (bps) to 2.25%.

So, the rising interest rates will make borrowing or loan servicing more expensive, especially for businesses and households with existing loans, but it will be good news for those with savings in banks.

The increase will reportedly ease inflation and help support the weakening ringgit, not just against the US dollar but other currencies, too.

The depreciating ringgit has long been a source of frustration for Malaysians. The weak ringgit has led to the rising cost of imported goods, especially food.

We spent in excess of a whopping RM55bil on our food import bill in 2020.

“The weakening ringgit will have a strong impact on imported inflation. This would result in transfer pricing to consumers as cost of living will rise.

“There is a high risk for some under the M40 group to fall into B40 and more of the B40 sliding further,” revealed Ambank Research last week.

It’s hard to explain to ordinary Malaysians that the weak ringgit is because of the stronger dollar from the super-sized rate hikes by the US Federal Reserve, especially when most people prefer to believe what social media feeds tell them.

When times are bad, especially when the pocket is pinched, reasoning takes a back seat. Economics and business analysis don’t make the sexiest news bites.

Perhaps it’s best that only selected Cabinet ministers who understand the issues be allowed to talk to the media.

Malaysians are sick of incompetent politicians and officials who are incapable of engaging intelligently.

For God’s sake, please don’t advise the public to eat fewer eggs when that’s the cheapest source of protein for most Malaysians.

But that’s what happened when one state official from the Domestic Trade and Consumer Affairs Ministry shared her economic nous. I would suggest that our politicians and officials research how other countries have tackled inflation, with practical austerity ideas, sans being condescending or insulting our intelligence.

I salute Mydin Hypermarket boss, Datuk Ameer Ali Mydin, for uploading a video on social media on what value RM50, RM100 and RM200 can offer at his outlets.

It’s a clever marketing and advertising plan that’s executed simply and cleverly – without having to spend millions of ringgit.

If our ministers lack a proper communication strategy, the fallout will be costly because inaccurate social media messages will only generate negative traction.

Many irate Malaysians only want to know why the ringgit is sliding, even against our neighbours’ currencies.

More importantly, while we struggle, politicians are busy squabbling over who should be Deputy Prime Minister, replacing a Minister who has hopped to another party and worse, indulging in inconsequential issues which make a mockery of Malaysia.

The federal government has now found itself in a bind. The window period for a general election is gone as the predicted inflation has hit home.

If it holds on until July 15, 2023, when the term of Parliament expires, the government better hope the Ukraine War would have ended and the world’s food production has recovered.

Somehow, it doesn’t look likely, especially with most economists predicting tougher months ahead.

Without the subsidies, the biggest in Malaysia’s history, it will be impossible to retain Malaysia’s official inflation rate of 2.3%, which is among the lowest in the world.

Malaysia is one of the most subsidised nations on Earth, a fact which most Malaysians have taken for granted. Unfortunately, that’s also unsustainable in the long run.

“Without subsidies, inflation should be around 11% as opposed to 2.8%. And the subsidy is costing the government over RM71bil. The weakening ringgit will add more to the import bills,” Ambank said.

The central bank’s foreign reserves of US$109.2bil (RM483bil) as of June 15, 2022, was the lowest since early 2021, and the drop of US$3.6bil (RM16bil) from May 31, 2022, was also the largest in seven years, according to Bloomberg calculations, The Edge reported.

However, it said, economists don’t think the decline in international reserves has reached alarming levels yet as the reserves’ position is sufficient to finance 5.5 months of imports of goods and services and is 1.1 times the total short term external debt.

In a nutshell, we are holding well. We are not like Sri Lanka, but we can’t afford to allow the fall in our reserves to continue at this rate.

There are expectations that there will be further increases in lending rates, with Ambank saying “we gather that a 50bps one-off seems highly unlikely.”

“We are of the view that OPR will end at 2.5% – 2.75%, suggesting another 1-2 more rate hikes with another two hikes in 2023 to 3.00% – 3.25%,” it added.

The Edge also reported that a hike is expected in September to 2.5%.

The most effective way to increase our reserves is to simply build up our revenue. Spending is the easy part, but we need to earn more to halt the slide, too.

IF following political news in Malaysia seems like a depressing prospect, it must be worse reading about political figures and their corruption cases, which run into millions of ringgit, or billions in the case of the 1MDB debacle.

Piles of money arrive easily in envelopes, bags or via their accounts, and even include colossal sums, with nary an eyebrow raised at the bank, in one case.

Ordinary Malaysians, who keep checking their bank accounts to see only a depleting balance, must find all these revelations hard to digest.

It’s difficult to comprehend the ease with which cash is exchanged.

Worse still, to avoid running afoul of the courts, since these cases are on-going, specific references can’t be made because it will be sub-judice to do so.

Sub-judice is a Latin legal term which simply means the public or witnesses involved in these cases are prohibited from public discussions because the matters are still under judicial consideration.

Accusations made in an open court would still be subjected to rebuttals, and allegations would need to be proven, if they are credible, in later stages of the court cases.

But for many ordinary Malaysians, the details have been shocking.

Only the fanatical loyalists would still have complete faith in their infallible political idols, although, to be fair, no one is guilty until proven so.

Even then, there are still many layers of appeal, and one judge’s decision may be overturned in the next court.

But the humdinger of the week has to be Datuk Seri Dr Ahmad Zahid Hamidi telling the court that “money isn’t everything, but everything needs money.”

We have also discovered how chats in WhatsApp groups aren’t exactly safe. If the police require forensic proof on people they wish to investigate, the communication platform is a weak link.

No wonder some politicians occasionally insist on using Telegram instead, and at least one top businessman insists that my mobile phone be put away whenever we meet for a chat, saying listening devices can be used to eavesdrop on our conversations, which spooked me to no end.

What some of these corruption cases have proven is that graft has become intrinsic in our society.

We know corruption is bad, as exemplified by the 1MDB scandal, but to hear the full-blown bits is something else. It sickens to the pit of the stomach, really.

According to a 2013 public survey in Malaysia by Transparency International (TI), most of the surveyed households perceive Malaysian political parties to be highly corrupt.

A quarter of the surveyed households consider the government’s efforts in the fight against graft to be ineffective.

And that was in 2013.

In 2020, TI Malaysia released the Global Corruption Barometer for Asia 2020, covering 17 countries with 20,000 people surveyed.

This survey for Malaysia was for the period July 2019 to June 2020, when two different governments at the time were reviewed.

The survey found that 71% of Malaysians think that government corruption is a big problem, and it’s noteworthy that 39% of all respondents strongly believe that corruption is on the rise.

Well, we can safely agree that these findings are not news to us and merely reaffirm what we already know or fear.

Malaysia has come to a point where voters seem to tolerate or even accept that their elected representatives could be corrupt. However, so long as they are competent and not excessively corrupt, they will be embraced.

The concept of a clean politician is almost utopian, especially in a non-ideal world.

So, we’re ready to compromise our standards because we have essentially given up.

Corruption has become entrenched and a culture. That’s the perception, be it fact or fiction.

There’s still light at the end of the tunnel though. Our firemen don’t insist on being paid to put out fires, ambulances still turn up for emergencies and policemen, despite being viewed negatively, still apprehend the bad guys.

In government institutions, work continues at a professional level, and approvals are seen through, although not entirely to our satisfaction.

The TI report said only 7% of surveyed Malaysians have been bribed for their vote in an election, which is lower than the 14% average in Asia.

“A total of 15% of surveyed Malaysians have utilised personal connections when accessing public services, which is lower than the average in Asia of 22%,” it said.

“More importantly, of all Malaysians surveyed, a total of 68% still believed that ordinary people could make a difference in fighting corruption, which is higher than the average in Asia of 62%.”

Well, it’s now 2022, and corruption seems to be a full-blown epidemic. The findings would probably have changed drastically by now, I think.

Political instability, party hopping, allegations of money politics and corruption scandals involving political figures would surely result in a dip in expectations, although TI Malaysia’s findings indicate that Malaysians still think we can fight graft.

It’s important for our leaders to lead exemplary lifestyles to send the right message to our people.

They must show that they’re in politics to serve the people and country, and not to enrich themselves.

It’s a farce to preach about struggling for race, religion and country when the common folks know it’s really about self-serving interests for power, positions and money.

Instead of opting for luxurious clothing or accessories, perhaps one could make do with a modest lifestyle, lest it be misconstrued by the observant public. It’s best to avoid unnecessary criticism at this juncture.

The ill-conceived justifications offered, as usual, are even worse. Surely, as ministers, they can afford designer clothing despite public criticism and ridicule.

No one expects our politicians to be as dressed down, with non-matching shoes, like Indonesian president Jokowi.

But he deserves all the accolades from his countrymen and the international audience for his moderate lifestyle.

We don’t need politicians who post pictures on social media about travelling in economy class when it’s a rarity.

Only their supporters happily swallow these shenanigans. The rest of the time, business class seats are the order of the day.

There’s really nothing wrong with travelling comfortably in business class if it means getting enough rest or being able to work while up in the air.

Malaysians are getting smarter. We can detect professionally crafted video recordings, with multiple cameras and lighting, involving religious figures and politicians doing so-called charity work.

Come on, they are so well scripted that it’s time they re-think and evaluate what they have been doing or risk being exposed as fakes.

Viewers have begun to question the well-being of the people aided in the video clips. What has happened to them, post shooting?

Money is important, for sure, but at the same time, there must be a bigger picture.

Perhaps that imagery is best encapsulated by American author John Hagee’s classic quote that the measure of a man’s greatness is not the number of servants he has, but the number of people he serves.

In the Malaysian setting, it’s certainly not the number of bodyguards, aides and police outriders that serves as a gauge.

IT’S become a soul-sapping experience. Most of us can only cringe because some of our politicians are so adept at putting our country in a spot because of their absurd comments.

They seem to continually suffer from the dreaded foot-in-mouth disease.

Most Malaysians have already gotten used to these personalities and the political fatigue they inflict.

There’s an unending sense of hopelessness. Most of us have simply thrown our hands up in despair.

And because we haven’t given up on our beloved country, we still get upset when these politicians put us in the international news for all the wrong reasons.

Obviously, we still care about the image of our country, which explains our distress since some of these inane politicians persist with their tomfoolery.

Dubiously, silly comments made in 2017 have returned with a vengeance to haunt Tasik Gelugor MP Datuk Shabudin Yahaya. Well, that’s how social media works and seldom do people verify what they forward.

The Bersatu politician had said that rape victims can have the opportunity to lead a healthy and good life if they marry their rapists, saying girls aged between nine and 12 years old are “physically and spiritually” ready for marriage.

“For a wife who was raped, if she can marry (the rapist), she would not go through a bleak future. At least she has someone who can become her husband,” he was quoted in the media at the Dewan Rakyat in 2017.

For some reason, the address by the former Penang Bersatu chairman has resurfaced. He isn’t exactly a household name, so most of us can be forgiven for his anonymity.

Still, his only speech engrained in our psyche about child rape victims has reminded us of his contribution to Parliament debates.

Then, there’s Tun Dr Mahathir Mohamad, with his endless tirades against Singapore.

The cause of his deep-rooted resentment for the island republic remains a mystery. Maybe only a shrink can give us a good psychoanalysis.

The media had earlier quoted him saying Johor should reclaim Singapore and Riau islands. Perhaps reporters unfamiliar with his trademark sarcasm had taken it too literally.

Or it was simply a Freudian slip. Either way, the next day, he issued a statement of clarification, saying that he wasn’t asking Malaysia to reclaim the land it had lost.

“I am trying to point out that we are so concerned over losing a table-size rock Pulau Batu Puteh, but never about bigger parts of Malaysia when they were taken from us,” he explained.

That’s the trouble with some Malaysian leaders. They love to resurrect old issues which have been buried. After all, giving these dead issues a fresh perspective provides little benefit in bringing them up in the first place.

Maybe Dr Mahathir would ask for the return of Brunei next.

That’s why we’re still talking about unnecessary and contentious issues relating to race, religion and language that were resolved before our independence in 1957, and doggedly pursuing them.

The world doesn’t care if we want to use Bahasa Malaysia, or Bahasa Melayu, or whether we should allow Chinese vernacular schools to exist, or even if we should attend Bon Odori. In the bigger picture, these are all inconsequential, hair-splitting issues that do nothing else than to frame our nation in a bad light.

Honestly, does the world really give two hoots? However, investors do care about pumping money into Malaysia when our neighbours, especially Singapore and now, Vietnam and Indonesia, are making great strides.

Malaysia is looking like a nation in decline because of our politicians who simply lack judgement, intelligence, or even common sense.

They never seem to think through what they say to reporters and barely realise they make Malaysia a global laughingstock and source of ridicule.

Picture this: Prime Minister Datuk Seri Ismail Sabri Yaacob led a delegation to Japan in May to promote Malaysia as an ideal investment country. There, he met top Japanese businessmen including leaders from Mitsubishi Power Ltd, the Japan-Malaysia Economic Association and Rohm Wako Co Ltd.

But a month later, our minister in charge of religion, Datuk Idris Ahmad, literally put the entire effort on a bonfire with his comments on Bon Odori, the biggest Japanese summer festival of the expatriate community in Malaysia.

It has caught the Japanese community by surprise and many Malaysians, in their personal capacity, have had to smooth ruffled feathers.

The timing couldn’t be worse, but it’s unlikely that Idris was even reprimanded because this is a weak federal government struggling to stay intact.

PAS only has 18 Members of Parliament in the 222 seat Dewan Rakyat and yet, almost all its lawmakers are ministers, deputies and at least one, a special envoy to the Middle East.

Well, ambassadors who have called on these PAS lawmakers have plenty to share, diplomatically and cautiously, about their competence – or rather, the lack of it.

On the flip side, there’s former Tourism Minister Datuk Sri Mohamed Nazri Abdul Aziz. He is a polished, urbane, and senior Member of Parliament. With his impeccable English and social skills, he’s the type of minister who can make us proud internationally.

Yet, he too, fumbled last week. He came under fire over his suggestion that floods in Malaysia could be used to promote “voluntourism” or volunteer tourism.

In an interview with Sinar Daily, he said that instead of crying over the flooding situation getting out of control, Malaysia should seek opportunities by promoting volunteer tourism.

After getting battered by netizens, he clarified that voluntourism is a recognised branch of tourism by the United Nations World Tourism Organisation.

The only problem is he wasn’t convincing. His idea has been, well, flooded with cynical and angry comments and is unlikely to attract tourists to Malaysia hoping to see our rising water levels.

Besides, Malaysia has serious competitors like Bangladesh, India and Pakistan, which have one thing in common with us – we can’t resolve flood problems which occur every year, especially during the monsoon season.

It’s a disgrace, and great injustice to the people of the East Coast that they are inundated by flood problems and the level of preparation by our authorities seems to only be about rescue boats and personnel.

Permanent flood mitigation plans with engineering solutions should be the answer. But chances are, we’ll now hear them blame climate change for the inadequacies and incompetence over flood controls.

But that has not stopped PAS vice-president Datuk Nik Mohd Amar Nik Abdullah from proclaiming that his party is the only political group in Malaysia that has a complete roadmap for Malaysia’s future via its “Wawasan Induk Negara Sejathera” blueprint.

The 30-year-old roadmap, he reportedly said, would resolve Malaysia’s woes in all aspects, proving that PAS is a forward-looking party.

I guess he said all this with a straight face. His party can barely resolve the water woes in Kelantan – the lack of decent piped water and floods.

Politicians should stick to what they do best. Don’t try to be stand-up comics who certainly get more respect from an audience which pays to be entertained.

Cultural event: Bon Odori has been organised in Malaysia since 1977 by Japanese expatriates. — ZHAFARAN NASIB/The Star

The Rulers have spoken, so there’s no chance for Malaysians to be denied a cultural experience.

WHEN Datuk Idris Ahmad, Minister in the Prime Minister’s Department (Religious Affairs), made the announcement that Muslims should stay away from the Bon Odori festival in Selangor, the PAS leader obviously had no idea how far he had overstepped his authority.

For some time now, the Malay Rulers have been unhappy about certain politicians and religious figures making statements on Islam without recognising that the real authority on religious matters is the Rulers.

The nine Rulers are the heads of Islam and Malay customs in their respective states.

As for the states without a monarch, the Federal Constitution provides for the Yang di-Pertuan Agong to assume the role of the head of Islam.

So, despite holding the position of a federal minister of Islamic affairs, Idris has no real authority to dictate rules in the various states.

When he claimed the Japanese summer festival, which has been celebrated in Malaysia for nearly 45 years, was “influenced by elements of other religions,” it hit a raw nerve.

After all, Sultan Sharafuddin Idris Shah – the head of Islamic affairs in Selangor – had previously attended the event in the state.

Idris crossed the line, and the Selangor palace would not allow that.

The PAS leader alleged that based on a study conducted by the Department of Islamic Development Malaysia (Jakim), the festival contains rituals of other religions.

His remarks upset the Selangor palace as the Bon Odori festival is scheduled to be held at the Shah Alam National Sports Complex on July 16.

In a rebuke, His Royal Highness decreed the Selangor Islamic Religious Department (Jais), the Shah Alam City Council (MBSA) and Idris attend the festival to learn the difference between culture and religion.

But while Idris has chosen to remain silent following the Sultan of Selangor’s statement, the Islamist party hasn’t helped its cause by openly going against the Ruler’s decree.

A series of defiant statements by PAS leaders appear to be an attempt by the party leaders to coax Idris to exert his authority as the federal minister of religious affairs.

Last week, Selangor PAS commissioner Datuk Dr Ahmad Yunus Hairi was summoned by his Royal Highness to a meeting at Istana Bukit Kayangan.

But the matter has been aggravated by a statement by Selangor PAS secretary Roslan Shahir Mohd Shahir – who wasn’t present at the meeting.

The same week, the Selangor palace issued another statement denying that Tuanku had sought PAS’ opinion during an audience on Bon Odori.

Instead, the palace said the monarch only stated his views regarding the Japanese event during the meeting.

The denial was in response to a New Straits Times article on Wednesday, which cited Roslan Shahir saying that His Royal Highness wanted to know the party’s position on Bon Odori.

But the latest incident seems to give the impression that PAS, and by extension, Idris, has not been happy with the authority bestowed on Sultan Sharafuddin by the Conference of Rulers to head the National Council of Islamic Affairs (MKI) in April.

The Ruler, as the council’s chairman, had decreed that Jakim could not issue any statement regarding decisions made by the council since this was now under the jurisdiction of the Muzakarah committee, the MKI and the Conference of Rulers.

It was also announced that Jakim would only act as the secretariat to the Muzakarah committee and MKI.

The decision of the Rulers was significant – the authority of Islamic affairs lies with the respective Sultans and His Majesty.

In 2015, Sultan Ibrahim Ibni Almarhum Sultan Iskandar asked Jakim to explain its expenditure and justify its demand for RM1bil in annual allocations and reminded it that the Conference of Rulers was the highest authority on Islamic affairs and the agency’s function was only advisory.

“We are the heads of religion in our own states. Jakim can give advice or propose guidelines, but it is up to us whether we want to accept it or not,” he had said.

Last week, the Sultan of Perak also made an important statement – that Malaysia must aim to maintain the values that have brought post-independence to all its communities despite the challenge it faces.

Sultan Nazrin Shah said Malaysia must champion and remain an exemplar of multiculturalism.

The statements and actions of the two Rulers are a beacon of hope at a time when political figures, using the veil of religion, appear to wield their clout with impunity.

Personal interpretations of religious matters have become laws, without any thought on the consequences for the multiracial fabric of Malaysia.

The silence of many politicians on the Bon Odori issue and failure to back Sultan Sharafuddin smacks of political expediency and reluctance to defend the role of the Rulers, which is clearly defined in the Federal Constitution.

But beyond that, it’s disturbing and tragic that Bon Odori, which has been organised in Malaysia since 1977 by Japanese expatriates, has become a religious and political controversy.

The event in Selangor – touted as the largest outside Japan – is jointly organised by the Japan Club of Kuala Lumpur, the Japanese School of Kuala Lumpur, and the Japanese Embassy, with support from the state government. The event is also held in Penang, the home of many Japanese investors, with the support of the Penang state government.

Ironically, the Mufti of Penang, Datuk Seri Wan Salim Wan Mohd Noor, who had earlier said Muslims should avoid the event, has made a U-turn, and now says Muslims are not barred from taking part in cultural events like the Bon Odori festival, seemingly backtracking on his earlier stance.

It doesn’t look like Malaysians, who believe in a moderate Malaysia that aspires to embrace diversity, can depend on our politicians.

Daulat Tuanku!

Big impact: Malaysia was the first country in the world to introduce and scrap the GST. – AZMAN GHANI/The Star

THE Barisan Nasional’s 60-year reign came to a grinding halt when it was toppled in the 2018 general election because of two primary reasons – the unpopular goods and services tax (GST) and the 1MDB scandal.

So, it came as a surprise to many, including those in Umno’s leadership, when Prime Minister Datuk Seri Ismail Sabri Yaakob suddenly said that the government hasn’t ruled out the possibility of reinstating the GST.

Some Barisan Nasional leaders privately felt that his remarks were untimely given that the general election would be called soon.

In an interview with Nikkei Asia in Tokyo, published May 31, Ismail Sabri opined that the GST could widen the country’s revenue, but on June 5, the PM quickly clarified that the government was still studying its reintroduction and has not made any decision yet.

He cleared the air by saying he didn’t announce the government would reinstate GST soon, but merely that it was looking into the possibility.

His revelation has, however, re-ignited discussions on the GST and its replacement, the SST (sales and service tax), which was introduced by the Pakatan Harapan government when it took over.

The reality is that after nearly five years, and under three PMs, the SST has not been able to fulfil its objective.

Pakatan made many electoral promises, oblivious to having to fulfil them because the party never thought it would win, in the words of Tun Dr Mahathir Mohamad, but it did by playing the populist card.

The 6% GST first introduced on April 1, 2015, by Datuk Seri Najib Tun Razak came under fire because it was regarded as too high in comparison to Singapore’s, which began with 3% GST taxation in 1994 and presently is at 7%.

But the island republic has announced that it will raise that figure to 9% in two stages, 1% each time, on Jan 1, 2023, and Jan 1, 2024.

The current rate for sales tax in Malaysia is 5-10% while service tax is 6%. But studies now indicate that there is an average shortfall of RM30bil a year following the shift to SST.

The GST was seen as a method to offset the budget deficit and reduce dependence on revenue from Petronas, as it’s not sustainable in the future. However, despite exemptions on many items, including many domestically consumed items such as fresh food, water and electricity, education and health services, it generated much anger.

Malaysia became the first country in the world to introduce and scrap the GST – and now, we’re seeing the impact of that decision.

The GST is viewed as a wider tax net, especially on consumption because only 16.5% of Malaysia’s 15 million workforce is subjected to individual income tax.

That works out to only 2.475 million individual taxpayers contributing to the projected RM37.36bil in total income tax, according to the Fiscal Outlook 2020 report, revealed The Edge.

Another report said that personal income tax in Malaysia averaged 27.29% from 2004 until 2020, reaching an all-time high of 30% in 2020 and a record low of 25% in 2015.

The GST would have been one way of broadening the tax base or risk overburdening the small pool of tax paying individuals and businesses that contribute 45% of the revenue, the report added.

During Pakatan’s administration, many individual taxpayers were hounded by the Inland Revenue Department for expenses spent over the last seven years under the so-called “capital statement” investigations.

Basically, it required a person to produce every single receipt, in hard copy, for every transaction over the previous seven years to justify that it matches their income, and that spread fear like wildfire.

Under normal circumstances, it’s near impossible to produce receipts for the last seven years – even though the law stipulates that one, in fact, should keep them. But many felt they were mere victims to fill up the coffers.

Dr Mahathir revealed in his book about the many complaints that reached him regarding certain figures in the Finance Ministry.

Many businessmen felt that they were being singled out by the Pakatan government – although they were already paying top taxes – to make up for the SST targets, which could never realistically be met.

So, if the present system continues, the 15% of the country’s workforce would have to bear the burden. Personal income taxes contributed only about 15% of federal government revenue in 2019 – about half of the corporate tax haul.

The cash cow – Petronas – has found its resources depleting drastically since 2014, and despite the recent hike in oil prices, much has gone to paying off our subsidised petrol consumption.

In fact, the subsidies bill could more than double to RM28bil this year if crude oil prices rise with the continuing war in Ukraine.

To put it simply, a return of the GST would generate a stable and predictable tax income because it is an efficient tax system, but it needs plenty of education and must be done gradually since everything in Malaysia is put through the political wringer.

Not enough Malaysians are paying taxes to shoulder the burden of running this country while living in one of the most subsidised nations.

According to Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz, Malaysia needs to fork out RM71bil in subsidies this year to keep inflation and the cost of living down.

Basically, we must think of ways to find the money to retain the status quo, including casting a wider tax net.

But Malaysians also want to see that their taxes are being properly spent.