-Dr. S.Ramakrishanan, November 27, 2014.

Malaysia was, once the land of honey and wealth, called “swarnabumi” but now it has become a land of indebtedness. While the national debt, god know what percent, officially is 55% and the household debt has risen to 87% of GDP which is one of the highest in the world. On top of the high indebtedness Malaysia is also confronted with rising inflation, weakening ringgit, capital flight out of the country, falling disposable income, low productivity, poor economic management and worst still is the rising extremism and narrow mindedness among Umno hardliners from the 57 year old ruling party.

Economists are predicting that 2015 as a difficult year for Malaysians. Next year, for the first time, Malaysians will have to pay GST on goods and services purchased and fuel without subsidy which will trigger higher inflation rate. To add more gloom, Bank Negara Malaysia is expected to increase interest rate to contain inflation and to reduce the household debt. In its bid to reduce its debts, the government has taken aggressive subsidy rationalization of fuel and sugar and electricity tariffs.

According to EPF data, 62% of active contributors are earning below RM2000, 96% below RM6000 per month and only 4% of EPF contributors earn more than RM6000. This is another confirmation that Malaysian workers are trapped in low income net. As we all know the prices of houses are high and price of cars are highest with high taxes.  With the no public transport in many towns 93% of household own cars mostly purchased through easy credit schemes. Besides, the huge housing loans and car loans, Malaysians are also saddled with loans for purchasing durable consumer goods, utility bills and internet bills.

Most Malaysians are practically managing their homes with hire purchase loans to equip their homes with fixture fittings and electrical appliances. The average Malaysian household debt servicing ratio is 43.5% and government servants are 60%. While norm is 30% debt service ratio, 60% debt service ratio of government servants will put civil servants in more distress and unable to perform. Bank Rakyat and other government linked agencies are disbursing more credit and easy payment schemes to civil servants get trapped into debt. .

Malaysia is home to 6.5 million legal and illegal foreign workers who are further depressing the already low wages among Malaysian workers as shown by EPF data above.  In western and developed countries the high wages leads to the influx of foreign workers. Malaysian workers’ wages are already low and why do we have 6.5 million foreign workers?  Aren’t the vested interest of Umno leaders and their cronies and corruption of bureaucracy the main cause? Since they are Umnoputras the long arms of the law will not reach them.

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These results only show that we have maximum government and minimum governance. Umno stooges Perkasa and Isma will protect these unbalanced, discriminatory and degrading practices and policies of their political masters and turn the other way when it comes to 1MDB and Teraju raising billions using government letter of guarantees without any checks and balances and accountability. I am very sure Umno assembly which is proceeding now will not deliberate on any of the above but blame DAP, non-Malays and every other being for their sliding political fortunes among Malaysians. The warped Umno minds are wrapped in the own mind created social contact to block and strangle the harmony, cohesion and progress of Malaysia. It’s Umno that perpetuates income inequality among Malays to stay in power. If only the rural Malays can smell and see the Umno’s wicked plan to stay in power, its political hegemony will dissipate.

The annual audit report, IMDB, non-performance and loss making other GLCs and ULCs (Umno), poor quality of education, increasing polarization and growing income inequality among Malays will be swept under the carpet. It will be another show of jingoism, blackmail, muscle flexing and intimidation by perverted politicians from Umno. Will Umno address extremism which is rearing its ugly head in Malaysia? Alas, is there a future for Malaysians under Umno? Are we running out of time? It’s Time for Malaysians to shake off complacency and fear of the unknown. Act now before it’s too late.