The Malaysian Insight

SOLVING purse-string problems affecting low-income families cannot be done overnight, said a senior DAP strategist, as it involves restructuring the entire economy.

Neither can Pakatan Harapan repeat the mistakes of the former Barisan Nasional government with its “cash is king” philosophy, said DAP’s political education bureau chief, Senator Liew Chin Tong.

Liew, who is also a deputy defence minister, said this in response to sentiments that the country’s economy is worse off now than when BN was in charge.

Some voters have told The Malaysian Insight that despite the corruption cases against top BN leaders, such as former prime minister Najib Razak, they felt their lives were generally better off under the former coalition.

Najib, who is on trial for fraud and money-laundering, ladled out aid through the 1Malaysia People’s Aid programme (BR1M) and other subsidies, they said.

“Although BN was corrupt, at least the people got something back” is a common opinion expressed by those dissatisfied with PH’s performance.

Liew countered this perception by saying wages had been stagnant for the past 15 to 20 years, when BN was in charge of Putrajaya.  

“What we are going through cannot be solved in one or two days. For example, wages have not increased in the past 15 to 20 years,” Liew told The Malaysian Insight.  

“When a graduate started working at the end of the 1990s, he earned between RM1,500 and RM1,800. A graduate’s salary now is almost the same.

“So, the correct aim is to refocus on jobs. We cannot just say cash is king and give BR1M to the people. The idea of BR1M is to cover up a problem in the short term. It’s a short-term measure,” Liew said.

BR1M has since been replaced with a modified programme, the cost of living aid (BSH), by PH.

Liew said under the old BR1M programme, some 60% of Malaysian households received cash and this meant that this group of people had problems making ends meet.

But the real solution to the problem is to restructure the economy so that Malaysians can earn a decent wage.

“It is not just by giving aid. The solution is to review the structure of the economy that we have inherited. We have not reviewed the structure of our economy since Najib’s time.

“What Najib did was when there was a problem, he used money and the problem was solved. There was a feel-good factor in the short term but we must all learn the lessons from Najib.”

What many forgot was that Najib also cut government spending and aid in 2014, said Liew.

The 1Malaysia Development Bhd (1MDB) scandal, where Najib and his associates were accused of stealing billions of ringgit from the state firm, is not the only reason he and BN lost GE14, said Liew.

In 2014, world oil prices plunged from US$115 (RM480) per barrel to below US$70 per barrel and this subsequently decreased government revenues.

According to data from the Economic Affairs Ministry, revenue from oil and gas products contributed 15.5% to the national economy as of 2018.

“When global oil prices went down, the government cut subsidies and spending by 30%. The police were angry, civil servants were angry to the point where there was not enough food for school pupils staying in hostels. This was between 2015 and 2016,” Liew said.

At the same time, aid was cut and the Najib administration introduced the goods and services tax (GST) at 6%, said Liew.

“People started feeling the pinch and had to deal with GST, while at the same time they saw how Rosmah was living,” said Liew, referring to Najib’s wife Rosmah Mansor, who was notorious for her extravagant collection of jewellery and handbags.  

“This combination of factors led to BN’s downfall but some people don’t remember these problems.

“They say Najib was better because he gave more but that is a perception.

“Many don’t remember what happened between 2015 and 2017. This structure had not changed.” – October 18, 2019.