A few points first.
No 1. I was listening to the new Finance Minister on that Awani interview. He has little idea what he is talking about. He cannot say clearly where the money for the Perihatin stimulus package is coming from. Dividends daripada “agensi” kerajaan? I say brader, you mean the GLCs lah. Agensi kerajaan ada dividen ke ?
(And you are basing this stimulus package on an oil price of US$35 per barrel?
Today West Texas Intermediate is US$21.50. Brent is US$24.93.)
The rest of the money will be from borrowing. That is the easy part lah.
Folks do not worry where the money is going to come from.
EPF alone has over RM600 billion cash money.
That is the people’s money.
And yes it is enough for any amount of stimulus.
And yes there is much liquidity in the financial system. Liquidity means cash money. We thank Allah that there are millions of hardworking people in this country who can still generate a surplus. If they do not generate a surplus, there will be little cash liquidity in the system.
No 2. Why does the government insist that private sector companies must continue to pay full salaries to the workers? When retail business is down 80%, where tourist and travel business is down what 200%? it is suicidal to insist that companies keep all their staffs or keep paying full salaries.
Well, there is a more simpler but camouflaged reason for the government insisting on this. The answer is the G..L..Cs..
- If the government agrees that private companies can cut salaries / reduce staffing etc then the GLCs must also do the same.
- But this will be disastrous for the government.
The government employs hundreds of thousands through the GLCs.
MAS alone employs over 13,000 staff.
What about Khazanah?
What about Petronas?
Here is a question. MAS employees are already under a three months no pay leave. So how now? Under this stimulus package, do those MAS employees go back to work? And get paid full salaries? Because that is what the stimulus package says – you cannot lay off people and you cannot cut staff salaries. Surely the stimulus package must apply fairly on all the government GLCs.
So what about MAS?
Do the 13,000 employees go back to work?
But if MAS employees go back to work, what work will they do?
Most of the MAS airplanes are grounded.
Or they should be, because no one is flying.
And the government does not dare cut the very high salaries of the GLC senior executives and senior managers, board of directors etc.
You know who I am talking about – those earning RM30,000, RM50,000, RM90,000 a month and so on.
Lets compare MAS and Petronas.
MAS has sent everyone home on three months no pay leave.
What about Petronas?
In the rest of the world the oil companies are laying off expensive senior staff, junior staff etc. Or cutting their salaries. Why? Because oil price is now US$21.50 per barrel.
What about Petronas?
Not even salary adjustments?
Err . . .jeng . . .jeng. . . jeng . . w..h..a..t a..b..o..u..t Khazanah Nasional?
That most useless dinosaur in the country?
No layoffs? No salary cuts?
Other than JAKIM – just shut down Khazanah Nasional.
Here is a question : What does Khazanah Nasional do?
They own convenience stores? ? ?
I say brader, so does Mr Krishnamoorthy.
He also owns a chain of convenience stores lah.
There will be no layoffs in the GLCs.
So the Perihatin package BANNED LAYOFFS AND SALARY CUTS TO PROTECT THE GLCs AND THE GOVERNMENT FROM SUFFERING SEVERE EMBARRASSMENT.
I have a suggestion : Do what you want with the GLCs but leave the private sector alone to manage their business.
My own older son is home on no pay leave. When they get back to work they have been told they will all take a 10% pay cut – for starters. A few have already been laid off. More layoffs might follow.
I cannot blame my son’s employer because they provide a professional service and with the lockdowns – business is just dead. No business, no earnings, no cash flow, so how are they going to pay the staff?
So folks, now we should all ask this question : Are the GLCs laying off staffs or cutting salaries ?
Are Khazanah or Petronas cutting salaries or laying off any of their RM50,000 or RM100,000 per month people ?
If they are not, does it mean they are cleverer than Harvard Business School?
Or they are cleverer than Shell or Texaco or Standard Oil – all put together?
As I said before, orang yang tak faham bisnes, tak faham finance dan tak faham ekonomi tiba-tiba sudah lebih pandai daripada satu dunia. Fantastic.
No 3. Ok folks, when the economy goes bad who should we save first?
Lets learn a lesson from the air hostess when you board a plane. Just after takeoff the air hostess will give you a quick safety demonstration. In that demonstration she will say that in case of an emergency the oxygen mask will drop from above you. If you are travelling with children or elderly, please secure YOUR OWN OXYGEN MASK first BEFORE you help your children or the elderly.
There is a simple reason for this “selfishness”. If you do not secure your own oxygen mask first you might pengsan or fall unconscious. Then you will not be able to help your young children or your elderly. So in an emergency situation it is important that you – the life guard – save yourself first.
Kalau lifeguard sudah mati, then certainly no one can save the drowning person. Both of you will die.
The same with the economy, with businesses and with jobs.
The economy is made up of enterprises. We call them companies or corporations depending on their legal classifications. But they are economic enterprises. Whether Cik Jah sells ayam goreng berempah or KFC sells fried chicken it is still an economic enterprise selling food.
If Cik Jah and KFC do not sell chicken then the chicken farm is out of business.
The chicken feed manufacturer is out of business.
The lorry transport company is out of business.
Everyone in that supply chian will be out of business.
So both Cik Jah and KFC must sell their chicken.
Cik Jah and KFC are the oxygen masks for the economy.
We must keep them going.
If their businesses fail Cik Jah will go back to her kampong and eat ayam kampong all by herself.
KFC will close shop and all their equipment will become rusty. Their workers will be unemployed. They must throw away all their chairs, tables, chicken fryers (because there is no second hand market).
Then say after six months or one year there is a turnaround, Cik Jah has no more money to re-open her ayam goreng berempah business.
KFC may reopen half or 1/3 of their restaurants. But they can only rehire 1/2 or 1/3 of their staff. It may take two years or three years for them to get back on their feet fully. Half their staff will be unemployed for two or three years.
So on the action side, the positive side, the pro-active side it is economic enterprise (also known as businesses) which is the oxygen that drives the economy.
Not Bank Negara, not Ringgit Malaysia, not who is the government etc.
Bank Negara, the Ringgit, government policy can kill the economy – through bad policy or through weakening.
So if you want to save the economy, and save the jobs for our young people, save the future of the country then we must save the businesses.
Ok here is a reality check. What if the businesses are owned and run by the kafir people ie the Chinese, the Indians etc.
Ok you don’t give a shit about them. Fine.
You don’t want to help them. Fine.
But don’t go and kacau them.
Do not disturb or disrupt them.
Just leave them alone.
They know what to do.
They can sort things out very quickly.
Tak mahu tolong takpa.
Tapi jangan pergi kacau orang.
So you can announce that the GLCs will not fire staff or cut staff salaries.
Special for GLCs only.
So your votes are safe.
But let other people manage their own affairs.
They know better what to do.