Long way to real reforms (Updated)

IN the first 100 days of the Pakatan Harapan government, we find that their report card scores around 20% based on their promises alone. The flip-flopping over the abolition of BTN and national service shows the importance of civil society to voice our opposition to such toxic and noxious institutions. Nor do their promises consider the more urgent reforms that civil society has argued is of higher priority. We have also witnessed a disturbing trend of autocratic decision-making and policies symptomatic of the old Mahathir 1.0 era.
Sacrifices at the altar of the trillion-ringgit debt mountain
The convenient opt-out clause for the new government is to pile much of the blame on the previous administration including the accusation of them of having run up a debt of RM1 trillion, or 80% of our GDP and apparently stealing RM19 billion of GST refunds. That blame frame then provides the new government with an emotional basis for gaining sympathy by starting a "Tabung Harapan" and appealing for donations. While the way in which this fund will be used remains unclear, it is probably the only fund in the world set up with the apparent aim of trying to plug a country's debt hole.
As for the actual size of the national debt, there is dispute among economists depending on whether we include government guarantees and lease payments under public-private partnerships. The size of Malaysia's government debt in international statistics for 2017 is 64% of GDP, compared to China's 65%, Singapore's 110%, US' 108% and Japan's 236%. What is at stake is economic fundamentals, which the finance minister assures us are still strong. It also depends on how the debt is financed since relying on overseas borrowing can carry higher risks. It also depends on the prospects for economic growth. Japan has one of the largest public sector debts in the world but it also has a large pool of domestic savings on which to draw.
This mythical "trillion-ringgit debt mountain" has become an altar on which promises made by PH in its manifesto are sacrificed – local government elections, new approved Chinese schools, minimum wage, abolishing highway tolls and postponing PTPTN loans. This is not acceptable as an excuse for putting off these urgent promises since PH had assured us that they could manage the economy once they had ousted BN.
But then the review of mega projects so as to reprioritise and reduce the debt mountain is not consistent with the approval of the Penang Transport Master Plan or with the Proton 2.0 project. Infrastructure Development Minister Peter Anthony has also announced that a dam costing RM2 billion will be built at Kampung Bisuang in Papar when Parti Warisan Sabah had promised to scrap the Kaiduan Dam project.
Back to privatising national assets
The government has not spelled out its difference in economic policy from the old regime. We have heard the alarming news of the return of old policies – privatisation of national assets in the name of bumiputraism and the revival of the national car, Proton 2.0.
The PM said that the sovereign wealth fund, Khazanah will be privatised for the benefit of bumiputras. During the financial crisis of 1997/98, it was Khazanah that had stepped in to take over the assets of the failed companies owned by crony capitalists in Renong, MAS and TRI. After taking over the assets, Khazanah revamped these GLCs with professional managers and better rules of governance. Khazanah owns 51% of PLUS Expressways, with the EPF owning the other 49%. By end 2017, the net worth of companies under Khazanah was RM125.6 billion. Thus, Khazanah is successfully achieving its purpose of creating a sovereign wealth fund for the benefit of ALL Malaysians. Its expressed purpose never has been to be privatised to bumiputra capitalists.
Tun Dr Mahathir' Mohamad's privatisation drive during his first term (1981-2003) was a boon for private crony capital. Taxpayers were the losers since these profitable public utilities were sold for a song and we became captive to monopolies. These failed crony capitalists had to be bailed out with our money during the financial crisis of 1997/98.
The prime minister has also announced the revival of another national car, or Proton 2.0. After the fiasco of Proton 1.0 and the huge cost to taxpayers, our public transport system and consumers, it is unbelievable that such a failed enterprise could be supported by a PH leadership full of former critics of the first Proton project. Another national car project will fail with further losses to national coffers and we will have to underwrite the losses. The PH government won't have 1MDB to blame for that any more.
Back to Mahathirist autocracy
It is alarming that no Cabinet member nor "eminent person" has voiced objections to plans to privatise Khazanah and start another national car. They have to bear collective responsibility for the consequences.
The PH manifesto prohibits the PM from taking over the finance portfolio but Mahathir has taken over the choicest companies – Khazanah, PNB and Petronas under his PMO. It is the return to the old Mahathirist autocracy. Was the Cabinet consulted in the decision to start Proton 2, privatise Khazanah, Malaysia Incorporated and the revival of the failed F1 circuit?
The appointment of Mahathir and Economic Affairs Minister Azmin Ali to the board of Khazanah also goes against the promise to keep politicians out of publicly-funded investments since it leads to poor accountability. Only by insisting on boards being made up of professionals and on rigorous parliamentary checks for bodies such as Khazanah can we ensure a high level of accountability.
We have to wait for Lim Guan Eng's memoirs to see how he responded to Mahathir leaving him out of Khazanah. Did the PM even discuss this with him? After all, Khazanah is still under MoF Inc. If the finance minister is left out of the board, how will he be privy to what the Khazanah board is doing?
Consistency in the war on kleptocracy
The government had pledged to wipe out kleptocracy. They have disappointed the people of Malaysia. The government has shown that where there is a political will, there is a way to get rid of corruption. However, by letting off Taib Mahmud, the prime minister makes his campaign against the former PM look like a personal vendetta. The prime minister has also failed to lead by example and declare his assets and those of his spouse and children.
Corporate heads in councils
The constitutional status of the appointed "Council of Eminent Persons" has been called into question. It has been reported that Perak has established a State Economic Advisory Council with corporate heads as "eminent advisers".
There is gross conflict of interest with such arrangements when these corporate leaders still have interests in the local and international corporate scene.
Delaying urgent reforms is unacceptable
Using the excuse of the government debt to delay local government elections which have been suspended in our country since 1965 is not acceptable. It is a matter of abolishing a provision under the Local Government Act and reviving the Local Government Election Act to introduce local government elections. If the government is prepared to see billions going down the drain with the Proton 2.0 project, don't tell us there is no money for local council elections.
It is absurd to tell Independent Chinese secondary school graduates that their UEC certificate can only be recognised in five years' time. This is a serious breach of promise since more than 80% of Chinese voters voted for PH because of this promised reform.
It is alarming to hear that the government is reconsidering its pledge to abolish several contentious laws.
The death penalty is a violation of human rights and must be abolished.
Reneging on manifesto promises
From the failure by the PH government to fulfil its election promises in the 100 days, it is clear that the manifesto was drafted in a slipshod manner to secure populist votes. These include the promises to abolish toll from the highways within the stipulated time promised; no firm position regarding the PTPTN loan repayments; wavering on the promise to pay a 20% instead of 5% royalty to oil producing states based on revenue from gross production; the deduction of a percentage from a husband's EPF contributions to go into the accounts of his wife, etc. PH has so far implemented less than half of its promises. Will the PM apologise for reneging on these promises?
Real reforms
Within the first year of the PH administration, Malaysians expect serious transformational reforms that will reconstitute truly democratic institutions and improve the lives of the 99% and especially the B40 Malaysians. Of the highest priority, we expect urgent initiatives to implement the eight key reforms including:
» An end to race-based parties and policies especially replacing race-based policies with needs-based measures that truly benefit the lower-income and marginalised sectors and basing recruitment and promotion in the civil and armed services strictly on merit;
» Re-instatement of democratic institutions including bringing back elected local councils and enacting a Freedom of Information Act;
» Zero tolerance for corruption. Political leaders charged with corruption must step down while their case is pending;
» A progressive economic policy that will renationalise privatised assets, especially land, water, energy, which belong to the Malaysian people instead of local and foreign capitalists, opening up GLCs to democratic control of the people and directing them to implement good labour and environmental policies;
» Redistribute wealth fairly through progressive taxation on the high-income earners, their wealth and property and effective tax laws to ensure there are no tax loopholes for the super-rich;

» A far-sighted and fair education policy with equal opportunities for all without any racial discrimination for enrolment into all schools and tertiary educational institutions;
» Defend workers' rights and interests especially their right to unionise and a progressive guaranteed living wage for all workers, including foreign workers;
» People-centred and caring social policies including an effective low-cost public housing programme for rental or ownership throughout the country for the poor and marginalised communities;
» Prioritise orang asal rights and livelihood by recognising their rights over the land they have been occupying for centuries, prohibiting logging in orang asal land and ensuring all orang asal villages have adequate social facilities and services;
» Sustainable development and environmental protection by allowing all local people to be consulted before any development projects and all permanent forest and wildlife reserves are gazetted.
The lesson of the first 100 days of the PH administration teaches us that, as always, civil society must be ever vigilant to push for these reforms because the government of the day will drag its feet and renege on these election promises when they have the opportunity.
Kua Kia Soong is adviser to Suaram. Comments: letters@thesundaily.com