Don't be fooled by latest growth rate

Source: http://www.freemalaysiatoday.com/fmt-english/politics/pakatan-rakyat/9413-anwar-dont-be-fooled-by-latest-growth-rate

PETALING JAYA: PKR de facto leader Anwar Ibrahim warned Malaysians against the attempt by the Barisan Nasional government to delude them through the latest economic growth rate which stood at 8.9% in the second quarter.

The opposition leader said the growth, announced by Bank Negara Malaysia yesterday, is commendable but the former finance minister added that the growth rate must be relatively compared to previous economic performance.

Malaysia saw its economy contracting at 1.7% last year and Anwar said the current 8.9% growth rate paled in comparison with neighbouring countries like Singapore and Indonesia which recorded steady and consisted growth amid the 2009 global recession.

"The disconnect between an announcement of stellar economic performance and realities on the ground is symptomatic of an economic management that is unable to eradicate income inequality in society," he told a press conference here.

Anwar argued that the adage in Malaysia is that the rich get richer and the poor become poorer each time the economic disparity in the society is discussed.

"There is not going to be much celebration on the streets... while the cost of living continues to rise, 2.4 million families or 40% of the households earn less than RM2,300 per month. They form the poorest section of our society and 75% of this group are Malay/Bumiputera families," he said.

Anwar claimed the Economic Transformation Programme (ETP) released by Prime Minister Najib Tun Razak on Aug 17 did not indicate a roadmap to close this disparity.

The ETP promises massive improvement to the economy, aiming to triple the Gross National Income to RM1.7 trillion in 2020 from RM600 billion in 2009.

It claims that this will translate to an income per capita of RM49,500 by 2020 and 3.3 million new jobs will be created.

To achieve the targets means Malaysia requires RM2.2 trillion in new investments, 92% of which is expected to come from private sectors and 75% from of it from domestic direct investments and the rest from foreign direct investments.

Anwar said the projections, however, are not grounded in reality and may sound like a credible plan but this has become the "standard modus operandi" for the ruling coalition to "throw a lot of big numbers and hides behind assumptions" that will eventually be proven wrong.

"Announcing a set of ambitious economic targets to be built almost entirely on private investments is irresponsible, to say the least, when Malaysia has been relying on pump priming for the past 12 years and private investment growth was minimal

"Similarly, the promise of 3.3 million new jobs and (increase in per capita income) is detached from the hardship of the people for the last 10 years. The reality is 34% of our workforce earns below the poverty line (less than RM700 a month) and the average salary increase for the last one decade is only at 2.6%," said Anwar.

Pakatan targets RM4,000 household income

Anwar said Pakatan Rakyat will strive to address the income disparity by promising economic programmes that could alleviate the poor, targeting a RM4,000 household income should it wrest federal power.

"A staggering two-thirds of our population survive on a household income of below RM4,000 a month. These four million families will continue to face hardship due to rising cost of living unless priorities are given to increase their income level drastically," he said.

The opposition leader said the proposal will be raised at the next Pakatan meeting as the flagship of the opposition pact's economic target.

"PKR will propose to its partners in the Pakatan government to implement a series of policies to change the level of wages in the country to achieve a minimum household income of RM4,000," he said.

These policies include strong commitment to plug leakages, determination and honesty to fight corruption, reforms of the judiciary and public institutions to bring back credibility and attract foreign direct investments (FDIs), added Anwar.

He said the country must move away from concepts and economic promises that cannot be achieved like the 30% Bumiputera quota, which he said remains unfulfilled.

"(It) remains unfulfilled and hardly has any effect on Malay families grappling with low wages and high cost of living (but) yet it is bandied as a cornerstone of gift from Umno to the public," said Anwar.