The State of Democracy and Economy in Malaysia
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Presdented by Wan Saiful Wan Jan, CEO of IDEAS, at the Rotary Club of Taguig Fort Bonifacio, RI District 3830, 09 September 2013 in Manila
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Exam questions involving drawing subsidy diagrams are typically found demanding by many students so please remember to revise this area of the course properly and get in lots of practise for this type of government intervention. If your analysis is accurate, you will frequently be given plenty of scope to critically evaluate the role of subsidies particularly when it comes to addressing different types of market failure. Strong evaluation understands the importance of elasticity in assessing the impact and also considers alternatives to subsidies by the government.
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Presentation Maria Ashiqin EACD CDL 2014
EACD 2nd Coaching Day Lisbon which will be about "On Lobby & Public Affairs | A transparent added-value strategic manner of managing political communication and Issues Management". This event will be held on November 11th in partnership with EDP.
We look forward to welcoming our speakers:
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Andrew Yang is running for President of the United States in 2020. Some key aspects of his campaign are that he proposes a universal basic income of $1,000 per month for all American adults, called the Freedom Dividend, to address job losses from automation. He believes that automation will eliminate millions of jobs in the coming years. Yang has over 100 detailed policy proposals on his website and argues that a UBI would encourage work and entrepreneurship while reducing economic insecurity. His campaign strategy involves announcing early, visiting key primary states, mobilizing supporters on social media, and qualifying for televised debates.
Bti 2018 mongolia
Strategic Outlook
Mongolia is on the verge of defaulting on its foreign debt obligations. This dire economic
circumstance will likely continue unless the government acts in a highly effective and quick
manner to increase foreign direct investment and improve budget discipline. Foreign investment
into long-awaited large-scale mining, energy and infrastructure projects can have a significant
positive impact on the economy, helping overcome the debt crisis and leading to higher economic
growth. The Mongolian public is increasingly becoming intolerant of a failure of political
leadership. Pressures will likely mount on the government to deal with the crisis in 2017.
Oligarchic groups (consisting of businessmen, politicians and state officials) have a significant
influence on the country’s politics and wealth distribution and their conflicts may jeopardize the
country’s continued political stability and development. The following policy measures would
likely prove helpful to successfully advance the socioeconomic transformation:
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This document provides information about several cities and their policies regarding inclusive services. It summarizes data about cities like Johannesburg, Durban, Freetown, and Edmonton related to population demographics, education, politics, economics, and issues they face. It also describes some of the strategies and policies these cities have implemented related to areas like youth, drugs, housing, employment, women, seniors and disabilities to promote more inclusive services for their residents.
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716178499 clmv
The document summarizes the political and economic cultures of Cambodia, Laos, Myanmar, and Vietnam (CLMV countries). It discusses the economies and recent reforms in each country. Laos has seen over 7% annual growth but still faces challenges like weak property rights and corruption. Myanmar's economy has modernized since sanctions eased and it passed new banking and investment laws, though structural issues remain. Vietnam has transformed through trade liberalization and reforms, maintaining over 6% annual growth despite state dominance. The document also outlines political histories and cultural aspects of each country.
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vibrant
1) Money and muscle power have come to heavily influence politics in India, with many politicians having criminal charges and large assets. The top political parties have hundreds of MPs/MLAs with criminal charges.
2) Various factors like regional politics, liberalization, and splits in parties have contributed to the rise of money in politics. Politicians manipulate business people and get funding in exchange for favors.
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MITmanthan
The document proposes electoral reforms to reduce corruption in India. It suggests forming a separate body to regulate politician's activities during elections, increasing the role of the Election Commission to bar candidates with criminal cases and monitor spending, and implementing public awareness campaigns and media oversight. Other proposals include making community service and oath-taking mandatory for some candidates to improve accountability. The goal is to curb the influence of money and muscle power in elections and help clean, young leaders form transparent governments.
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- Having natural resources is not inherently a curse; lack of rule of law is a bigger problem for development than adding more government bureaucracies through federalism.
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F.Hayek, Mises, Adam Smith on the Nanny State and Smoking Regulations
Friedrich Hayek, Ludwig von Mises, and Adam Smith argued against excessive government regulation and interference in a "nanny state". Hayek said governments do not possess complete knowledge to entirely shape society. Mises said individual satisfaction and value judgments cannot be decreed by others. Smith said the government role is to protect society from violence and injustice but not micromanage individuals' behavior. Excessive restrictions encourage black markets and illicit trade undermining public health goals. Countries with high smoking rates like Japan and Singapore have high life expectancies, contradicting the premise that smoking reduces longevity.
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The document discusses China's Belt and Road Initiative and raises some concerns about the initiative. It notes that while China has benefited greatly from globalization, the Belt and Road Initiative has elements of mercantilism and aims to address China's overcapacity issues by outsourcing infrastructure projects. There are also concerns about lack of transparency in loans from Chinese state banks and about Chinese investments potentially undermining governance standards and strengthening authoritarian tendencies in recipient countries. In short, the Belt and Road Initiative may end up providing less infrastructure benefit than advertised while negatively impacting institutions in host countries.
Hayek, Mises and Classical Liberalism
This document provides biographical information on influential classical liberal thinkers Friedrich Hayek and Ludwig von Mises. It discusses their major works and key ideas. Hayek focused on topics like spontaneous order, the limits of knowledge and planning, and the importance of the rule of law and individual liberty. Mises wrote extensively on economics, socialism, and interventionism. He emphasized the role of consumers in a market economy and that government intervention inevitably leads to distortion. The document also briefly discusses other classical liberals like Adam Smith, their works, and some of their central ideas around free markets, private property and limited government.
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The document discusses several key points regarding TRAIN 1 and the need for TRAIN 2 reforms:
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2) Many countries are trending towards lower personal income tax rates to provide higher take-home pay and boost domestic consumption.
3) The Philippines already has high taxes in other areas like the highest VAT in ASEAN and among the highest dividend and interest withholding taxes.
4) A federalist system could reduce national taxes and assign more revenue raising powers to state/regional governments to fund local infrastructure projects through their own tax systems.
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The document summarizes Bienvenido S. Oplas Jr.'s presentation on the TRAIN law and issues related to federalism, public-private partnerships, and other economic policies in the Philippines. Some key points from the presentation include:
- Income tax rates were reduced overall by the TRAIN law but remain relatively high in the Philippines compared to neighboring countries.
- Countries with zero income tax like Singapore and Hong Kong tend to be wealthier and have stronger institutions compared to countries that impose income tax.
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Global coalition letter to WHO vs plain packaging
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1) Duterte campaigned on a platform of tough law and order policies including a bloody "war on drugs", which has led to over 13,000 alleged drug-related killings with little due process.
2) While infrastructure spending under Duterte's "build-build-build" plan may spur growth in the short-term, the administration plans to fund this through large budget deficits and tax increases, threatening long-term fiscal sustainability.
3) The Philippines' strong economic growth in Duterte's first year is partly due to momentum from the previous administration, and growth is projected to slow going forward as this effect dissipates and policy uncertainties increase under Duterte's populism and erosion of
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1) The document discusses responsible mining and the role of open pit mines. Several proposed and upcoming mining projects in the Philippines will use open pit extraction methods.
2) Open pit mines can later be rehabilitated and reforested, or left as man-made lakes to create economic opportunities for fishing, water sports, irrigation, and hydropower.
3) The document argues mining taxation in the Philippines is already high, providing more than six times the average taxes per hectare of land nationally. It cautions that any tax increases should be balanced by cuts to other mining fees and regulations.
Energizing growth, the role of coal power
The document summarizes the key points made by Bienvenido S. Oplas Jr. during a roundtable discussion on energizing economic growth in the Philippines. Some of the main ideas expressed include:
- The Philippines already has a high share of renewable energy at 33% of installed capacity, but ranks poorly in terms of energy affordability.
- Reliable baseload power from dispatchable sources is needed to sustain fast economic growth and ensure electricity is available when consumers need it.
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- Germany's experience shifting to more solar and wind has increased dependence on fossil fuels and doubled
How Governments expand via distorted energy, infra and fiscal policies
Government often expands through distorted energy, infrastructure, and fiscal policies according to the author. Specifically:
1) Climate change alarmism is used to expand government programs promoting renewable energy, but the science does not support claims of an unprecedented crisis requiring action.
2) Large infrastructure projects are increasingly financed through foreign loans instead of public-private partnerships, increasing public debt.
3) Budget deficits are growing under the current administration's plans, meaning more public borrowing and future tax increases to repay loans.
The author argues this expansion of government through distorted policies does more harm than good.
Travel under budget constraints
The document discusses tourism statistics and travel tips. It notes that Singapore, Malaysia, Hong Kong, and Thailand received significantly more tourist arrivals and receipts than the Philippines in 2015. It also lists the top countries of origin for tourists to the Philippines in 2015. The document then provides tips for planning trips, budgeting, documenting travels, and cutting costs. These include considering destinations and activities, season, transportation options like RORO buses, multi-destination trips, and using a blog to document travels. Information on a cheap trip to Nepal and details on visiting Bhutan are also included.
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- 1. The State of Democracy & Economy in Malaysia Wan Saiful Wan Jan Presented at the Rotary Club of Taguig Fort Bonifacio RI District 3830 Metro Club, Rockwell, Makati City Monday, 9 September 2013 www.IDEAS.org.my
- 2. About IDEAS • Launched on 8 February 2010 • The only independent free market think tank in Malaysia • Key aim: “making markets work for the poor” • Key principles: o Rule of law o Limited government o Free market o Individual liberty and responsibility www.IDEAS.org.my
- 4. Malaysia – key facts Area 329,847 square km Population 29.5 mil Capital Kuala Lumpur (pop: 1.5 mil) Urban population 73% Political system Constitutional monarchy, Parliamentary democracy Voting system Constituency-based first-past the post (Westminster style) Independence 31 August 1957 from Great Britain Ruling party Barisan Nasional (National Front), a coalition of 12 mainly ethnic based political parties, led by Najib Razak (Prime Minister and Chairman of BN) www.IDEAS.org.my
- 5. Malaysian Politics • Mainly between two coalitions • Dominated by ethnic politics • Top-heavy, with most big decisions made by the top leader Barisan Nasional (BN) Pakatan Rakyat (PR) Najib Razak (Prime Minister) Anwar Ibrahim (Oppos. Leader) 12 mainly ethnic based parties 3 very different parties (Centre left, Islamist, ???) www.IDEAS.org.my
- 6. What did Najib propose? • Liberalise the economy (New Economic Model) o Reduce number of SOE o Reduce subsidies and handouts o Reduce Malay dependency on government o Move out from middle-income trap o High-income nation (>USD15,000 per capita) by 2020 • Reduce the influence of ethnicity o Promote 1Malaysia o Allow direct membership into BN (instead of into the ethnic-baed parties) o Make merit a key criteria www.IDEAS.org.my
- 7. The recent GE13 • Before 2008, BN always had 2/3 majority – crucial to make constitutional amendments • Losing the 2/3 majority contributed to Abdullah Badawi being forced to step down from PM • GE13 (5 May 2013) was the toughest for BN, they performed worst than 2008 (133 seats vs 140 seats) • BN won 60% of seats but only 47% of popular votes • These put Najib under pressure from his own party, and many reforms are at risk • There were many abuses of state machineries during the election (GLCs and PLCs) www.IDEAS.org.my
- 8. Key Observation Findings • GE13 was partially free but not fair • Many abuses of state machineries and state operated enterprises (SOEs) • Media was heavily one- sided • The problems were entrenched in key institutions, not so much a problem with the Election Commission
- 9. Has Najib succeeded? • 1Malaysia has become a welfare programme • Subsidy costs 16% of total annual budget (MYR 14bn from USD 85bn) • Govt debt is higher than ever (54% of GDP in 2011) • Continuous budget deficit since 1997 • Malay business lobby has become stronger • Government continues to intervene in the economy • Ethnic relation is not improving All due to the ethnic structure of our political parties, especially in BN, and the desire to win GE13 Ethnic politics is disrupting reform, and strengthening dependency www.IDEAS.org.my
- 11. What alternative does Anwar offer? • Free university education • Higher minimum wage • “Bonus” for senior citizens above 60 • Greater control on price of fuel, electricity and water • Legally mandated payment from husband to wife • Many more redistribution programmes by creating a welfare benefit system In other words, Anwar will take Malaysia firmly to the left www.IDEAS.org.my
- 12. What does the future look like? • Najib may be forced to step down by 2016 by his own party • To reduce pressure, Najib will have to slow down the pace of reform • Who replaces Najib is unclear, but likely to be less liberal • Anwar will not be Prime Minister • But if Anwar can hold PR together, PR could become government in GE14 (2018) The challenge is therefore to embed sustainable and competitive policies now, before Najib goes www.IDEAS.org.my
- 13. Key lessons • Ethnic-based politics is very difficult to end o Hence better not to allow ethnic-based politics to gain ground • Welfarist policies are very difficult to stop once started o Hence better not to start one in the first place www.IDEAS.org.my