Subsidy removal: Malaysia needs ‘reality check’ – Activist

Shah Alam - A community activist has emphasised the need for Malaysia and its people to undergo a 'reality check' in light of the controversial possibility of subsidy elimination.

In the complex landscape of Malaysia's economic challenges, the government is poised to implement controversial subsidy eliminations amid concerns of a deteriorating economy.

This move comes against a backdrop of rising dissatisfaction among Malaysians, who questioned why they should bear the brunt of government mismanagement during these difficult times. As the cost of living escalates and economic stability remains elusive for many, tensions are running high, highlighting the urgent need for nuanced solutions that address both economic realities and public concerns.

In an interview with the Sinar Daily, Liyana Marzuki, a community activist shed light on her recent podcast session with the "Jangan Pajak Otak" to provide accurate information to the public on issues related to public interest. Recently, there was news from Bloomberg about the potential elimination of subsidies in Malaysia, possibly in June 2024. Recognising the importance of obtaining authoritative insights, Nurhisyam Hussein, the economic advisor to PMX was invited to shed light on this matter. Nurhisyam revealed that:

• The potential increase in fuel prices; from the current RM 2.05 per litre to RM 3.50, representing a substantial RM 1.45 increase. The jump raises concerns, particularly considering the impact of subsidy removal in neighbouring countries like Indonesia where riots occurred in 2016;
• To address these concerns, the government plans to implement subsidy rationalisation progressively over time, possibly with incremental increases every six months to mitigate the immediate impact on the public; and
• The approach aims to reassure the public and prevent any adverse reactions by ensuring a clear understanding of the government's strategy.

According to Liyana, she had been discussing the removal of subsidies since last 2023 and her perspective on this matter was influenced by the country's staggering debt, which was now nearly 65 per cent of Gross Domestic Product (GDP), amounting to approximately RM 1.7 trillion, the highest in Malaysia's history. When considering on this matter, she always reflects the future generation and reflects the experience of Sri Lanka and Venezuela. Venezuela was once a wealthy nation with abundant oil reserves, faced economic collapse due to prolonged subsidy maintenance and a 'cash is king' mentality since the 90s. Learning from such examples, she believes that addressing the subsidy issue is timely and critical.

Lyana further stated that:

• The previous attempts by the Barisan Nasional (BN) government were clouded by corruption issues like 1Malaysia Development Berhad (1MDB), which undermined public trust in subsidy removal efforts. The current government as far as she is concerned has not shown any signs of integrity issues and the timing is right for subsidy rationalisation;
• She did not anticipate receiving the subsidy if it was removed, given that she and many others fall within the M40 middle-class category. It is likely that cash transfers, if implemented, would target the B40 and below, covering 60 per cent of the population. However, it is crucial to grasp the economic reality facing Malaysia after 65 years of independence as we are no longer economically prosperous; and
• She stressed that Malaysia was burdened with significant debts and subsidy liablities with an uncertain economy. Comparing Malaysia to neighbouring countries currently has one of the lowest fuel prices after Brunei. In Indonesia where salaries are lower than ours, fuel prices are higher. 

Liyana emphasised that we must acknowledge that times have changed, and we cannot expect the past to mirror the present. To convey this reality to the public, especially those who may not benefit from subsidies, we need a 'reality check'.

It is essential to recognise this reality and not selfishly cling to subsidies, as failing to address our economic challenges could jeopardise the future for our children and grandchildren, as seen in countries like Venezuela and Sri Lanka.       

The article titled Subsidy removal: Malaysia needs 'reality check' - Activist was written by Wan Ahmad Atarmizi and published in the Sinar Harian Daily on 14 May 2024. The podcast in Malay may be accessed in Youtube, "Penarikan Subsidi Minyak: Rasional dan Impak", Jangan Pajak Otak.    

Gen-Z Expectation from Their Work

By Rebecca Rajaendram, the Star, 4 September 2022

Gen-Z in Malaysia is generally defined as those born between 1997 and 2012. Given that the people born towards the start of this generation are now in their 20s. Many are beginning their entry into the workplace. 

Refer to the study entitled Laws of Attraction in 2020 by JobStreet Malaysia. It says that Gen-Z is concerned with:

• having a modern work environment emphasising personal development at the start of their working lives;
• placing environment issues as a top priority (Deloitte's 2021 Millenial and Gen-Z Survey); and
• drawn to being part of a cause that is bigger than themselves which means they wanted to contribute or being part of the cause.

Some of them had the beginning of their working lives and studies interrupted by the COVID-19 pandemic. According to Alicia Ch'ng, Careers Advisory Service from the University of Nottingham (UNM) mentioned that universities and higher education institutions play a part in ensuring they are ready to join the workforce:

• Universities must work closely with industry when it comes to curriculum development to ensure the students' knowledge and learning experience both meet current industry requirements and consider the dynamic future of business and social development in the country; and
• Universities should prepare the graduates with the attitudes and skills that make them both global citizens and attractive to employers across a range of sectors to enable them to bring value to the employers they work with and bring innovation to their future work places.

Prof. Sarah Metcalfe, UNM Interim Provost and Chief Executive Officer in a press conference on 5 August 2022 stated that:

• She believes that a university should be an institution that nurtures the newest generation joining the workforce and being conscious that key motivating factors for Gen-Z are work-life balance, mentorship and professional development opportunities; and
• She advises graduates to have positive attitude and show initiative as the saying goes, "You only get out what you put in." Great places to work have both good leadership and the support of a cohesive team. 

Special thanks to the author of the news report (please click here for the original report online). I will translate the report into Bahasa Melayu for another section to help others who need help in capturing the current situation at the workplace and job market. 

Citing Indonesia, Dr Mahathir says non-Malays should be assimilated and ‘become Malays’ as part of ‘Bangsa Malaysia’

Kenneth Tee, Malay Mail, 13 November 2023

Former prime minister Tun Dr Mahathir Mohamad has insisted the non-Malays in the country should have been assimilated into the Malay community, to form the “Bangsa Malaysia” concept of nations he envisioned.

Pointing to neighbouring Indonesia, Dr Mahathir said other ethnic groups such as the Chinese there have “successfully” assimilated and embraced the local culture but not in Malaysia.

“But when the migrants wished to retain their identities and going as far as to dispute the ownership of this country to be not a Malay country but a multicultural one, that meant we have lost our country,” he said in the Keluar Sekejap podcast, referring to the Malays.

He justified his claim by pointing to how part of Malaysia was historically Tanah Melayu, and declared the Malays to be the pioneers of the land.

“The Malaysians I defined are the Malays,” he said, referring to the nation he envisioned.

“They are Indonesians because they have embraced the way of living of the Indonesian people. They do not call themselves Indonesian Malays or Indonesian Chinese but in Malaysia, we got Malaysian Chinese, Malaysian Malays.

“Why do [the non-Malays] want to retain their different cultures, languages and alienate themselves from the locals?” he asked.

Earlier this year, Dr Mahathir caused controversy by claiming that the majority Malays in the country “did not benefit” from the multi-ethnic fabric of the country.

In a lengthy Twitter thread, Dr Mahathir said multi-ethnicism in the country has created a meritocracy where everything went towards those who were most capable, best trained and financially secure — further claiming that this means only non-Malays have benefited from this.

Anwar and the Politics of Language Nationalism

P. Ramasamy, former Deputy Minister of Penang expressed his opinion in MalaysiaNow on 23 October 2023 that whether or not it is sheer hypocrisy on the part of Prime Minister Anwar Ibrahim to jump on the bandwagon of language nationalism to instruct government departments to return or reject correspondence or letters in languages other than Malay remains to be seen.

The question of Malay as the national language has long been settled in the country. There is no reason or rhyme to invoke language nationalism any more other than for political reasons.

• Malay is the language of communication at government departments, and the medium of instruction at public schools, universities, and others. There is no question of other languages creeping in surreptitiously to replace Malay. If there is fear, then certainly it is a misplaced one or based on paranoia.
• However, at schools and certain public universities, English might be used to encourage students to become proficient in the language. Some universities and colleges established to cater primarily Malay students also employ English as the medium of instruction.
• While instruction in English might contradict the national language policy, the requirements of the larger good might be a countervailing factor. For e.g. English is the medium of instruction at the International Islamic University of Malaysia (IIUM) to cater international students and it is a clear contradiction but IIUM being an international university, so the use of English is justified.

He raised two questions about the statement by Anwar Ibrahim on the rejection of government departments to correspondence in languages other than Malay while the use of Malay has been unevenly implemented in public institutions of higher learning:

• Would foreign correspondence be exempted as Malaysia also wants a high international profile? Imagine potential foreign investors intending to pour billions in investments but their letters to government departments get rejected because they were not written in Malay. Would the government departments reject them if they were written in English or languages other than Malay? Are Malaysians that narrow-minded that they would reject letters in English when the latter has become unofficial second language in Malaysia and a language of international communication and discourse?
• What about states like Sabah and Sarawak who agreed to join the Federation of Malaysia with one of the conditions, to use English as one of their official languages. Shall government departments there reject or return letters written in English to their correspondence too? How can Anwar superimpose a language requirement in those states when terms of their entry into the Federation of Malaysia in 1963 clearly allowed the usage of both Malay and English?

On the other hand, Ramasamy agrees that efforts should be taken by the government departments to strengthen and improve the usage of Malay. This should be a routine exercise without any intervention of the prime minister. He further said that there is no question on Anwar's commitment to uphold Malay in Malaysia. However, Anwar as the prime policy maker in Malaysia should not be a fundamentalist in the implementation of Malay or he should be giving speeches in Malay during international events if he is that nationalistic to the Malay language.

He further stated that, Anwar has a pretty good command of English as compared to the former prime minister such as Ismail Sabri Yaakob and the current deputy prime minister, Ahmad Zahid Hamidi. Ismail had to deliver speeches in the international platform in Malay not because of his nationalism to Malay but because of his poor command of English. Similarly, it is better for Zahid to keep to Malay in his speeches due to his English is not up to mark.

Ramasamy said that lately, Anwar has been trying to score political points to ingratiate himself to the Malays. The political coalition he leads has lost considerable Malay support to Perikatan Nasional. He wants to last the full term. In order to do so, he is trying his best to be popular with the Malays. Among of his prominent political antics are as below:

• Reminding the non-Malays of their social contract;
• Leading religious conversions;
• Trying to portray himself as the champion of Palestinians as though the earlier prime ministers had failed;
• Giving premature approval for the holding of a Palestinian Solidarity Week in schools; and
• Giving advice to government departments to reject letters written in languages other than Malay.

Ramasamy further stated that he understood the enforcement part of the use of Malay in government departments, but the government also has an open policy in the promotion of English. This could be seen in the dual language teaching programme in national schools that has gained much traction among both Malays and non-Malays.

Ramasamy agrees on the emphasise of the importance of Malay as the official national language of Malaysia. However, he believes that Anwar does not have to go to the extent of micro-managing correspondence in government departments. Ramasamy advises Anwar to focus more on economy such as:

• to address food shortage in Malaysia;
• to address the decline of Ringgit's value against US Dollar;
• the creation of a talented of workforce; and
• to ensure that the pledges of investments being materialised.

Ramasamy ends his opinion that in order for the economy to keep going, Anwar needs a good team in the Cabinet. Some of the deadwood appointed for reasons other than merit must be dropped. It is also about the time that Anwar replaces himself as the country's finance minister. 

Education in Malaysia

Children in Malaysia begin their education as early as at the age of four at pre-schools although this is not compulsory. Primary education starts when the child reaches the age of six on the first day of January of the current school year. Prior to 2015, only six years of primary education were compulsory but after 2015, the five years of secondary education were also made compulsory. The government provides free education for six years at primary level and five years at secondary level. At the end of the secondary education, students sit for a common public examination namely the Sijil Pelajaran Malaysia (SPM), equivalent to the General Certificate of Secondary Education (GCSE) in the United Kingdom (UK).

• Overview on Education in Malaysia
• History of Education System in Malaysia
• Educational issues
• Survey on Discrimination in Schools

International laws leave Malaysians vulnerable to unfair dismissal

According to Edmund Bon, a human rights lawyer said two international laws which Putrajaya is bound by leave Malaysian employees at foreign embassies vulnerable to unfair dismissal:

• the Diplomatic Privileges (Vienna Convention) Act 1966; and
• the International Organisations (Privileges and Immunities) Act 1992

They provide total immunity to embassies in all respects of their presence in Malaysia. They not only allow for the dismissal of Malaysian employees, referred to as "locally engaged staff" (LES) but makes it difficult for them to seek legal recourse if they have been unfairly terminated.

According to Bon:

• No legal recourse is available if an embassy is granted general immunity.
• The two laws give rise to three possible interpretations, which means the outcome of any case brought against an embassy would hinge on which interpretation the presiding judge relies on. So, say if a local employee were to challenge a dismissal in a Malaysian court, does the court follow the common law, which is premised on precedent cases or statute law?

In a recent case in which a Malaysian security guard sued the US embassy for unlawful termination was a progressive case based on common law but should also be applied across the board to all statute laws. Read further here. Thank you. 

Malaysian Education quagmire: Destruction of current and future human capital

THE intersection of the education system, the burgeoning gig economy and the brain drain may seriously challenge Malaysia’s future.

With a massive brain drain already in place, as more and more students choose to join the gig economy instead of pursuing tertiary education, understanding the factors driving this disinterest in tertiary education is paramount to ensuring that the educational system remains relevant and effective in preparing individuals for the rapidly evolving landscape of the modern job market.

In an era of rapid technological advancements and shifting professional landscapes, the traditional pathways to success are undergoing a profound transformation.

The allure of flexible work arrangements, lucrative opportunities, autonomy, and on-demand work gaining momentum challenges the conventional notions of the value of higher education.

Armed with a tech-savvy mindset and an innate entrepreneurial spirit, the younger generation questions the age-old narrative that equates tertiary education with assured prosperity.

This shift in attitude raises critical questions about the potential consequences for the future workforce, economy, and societal development.

As per the Organisation for Economic Cooperation and Development (OECD), the enrolment figures in tertiary education serve as a measure of a nation’s prospective capacity for a skilled workforce in the future (refer to "Equipping future talents with education, skills to thrive").

Global data also shows that higher tertiary education enrolment correlates with better national outcomes over time (Figure 1).

Very well, there could be a reciprocal relationship, thus creating a vicious cycle!

However, Figure 2 illustrates Unesco's data concerning the trajectory of tertiary education enrolment proportions in Malaysia.

Read full article here.

Education is fundamental in shaping society and determining the country’s future.

It can be the root of many socio-economic issues, so innovations must be made to the system to keep education in line with the changing practices.

To do so, leadership with vision is needed. 

Dr Rais Hussin and Chan Myae San are part of the research team at EMIR Research, an independent think tank focused on strategic policy recommendations based on rigorous research.

Source: The Stars Online, 3 September 2023