Tuesday, November 3, 2009

Budget 2010 analysis

The analysis is done by 3 credible panel of Selangor state goverment. It takes place at Dewan Banquet of MBPJ. Among the leaders attended were Datuk Seri Anwar Ibrahim, Datuk Seri Hadi Abdul Awang and others.

YB Dr Dzulkefly Ahmad (MP Kuala Selangor) touched about rising deficit of nation's budget. As a result over dependent on petroleum sector. Second wave of privatisation will take place, Government expenditure is blocked as to reduced the deficit so Investment is more focused. Consumption which require people to spend money in domestic market to boost GDP.

Low income threat is a result of implementation BN policy (foreign direct investment). Fdi and growth rate of Vietnam and Indonesia passed us. Now we have to compete with Myanmar, and countries that left behind development.


This budget is "macam ada tak kena", said by Zul.
 Where the measures can be found and is very brief. Knowledge based economy requires knowledgeable person, which can be only achieved thru quality education (not only 3M membaca, mengira and menulis).

We now far left behind Singapore.

22 times the word innovation being mentioned by Najib.

Long on rhetoric, short on specific. Minimum wage enactment should take place. Over dependent on low quality foreign labour force won't be able to move the economy. Poor infrastructure (Internet connectivity) high speed broadband (10 mbps) which just 256 or 525 kbps is reason why Aussies think twice before invest in country.

YAB Menteri Besar Selangor explained further that the budget is lack of initiative to attract investment, and proposed minimum household income in urban area RM 3000 is not based scientific as EPU said it was not sustainable and should come with productivity. MB added the state government will create more economy growth opportunity and look in state privatisation water asset.

YB Tony Pua (MP Petaling Jaya Utara): clarify that power of state government is limited and finance where should be decentralised. Furthermore the return of tax based revenue which decided by political factor by which less than 9 % is returned back to state.

Metzelder says:
From my point of view it is much discussed the details of budget and not only the good, sweet looking from outside.

The two economist, Tan Sri Khalid Ibrahim and Tony Pua, also Zulkifli give better input.