Three Things I am Thinking about Today #5

  1. The Government is tabling a bill to raise Malaysia’s statutory debt ceiling from 60% to 65%, in order to fund stimulus measures to help Malaysians get through the pandemic. I think this is timely, and much needed. What is not clear, however, is whether this is a temporary or permanent raising of the debt ceiling (the title of the Bill suggests that this is temporary, but this is not made fully clear), and whether there is a clear plan for Malaysia to bring its debt levels back down to below 60% once the pandemic is truly over. We must not allow emergency measures to become a slippery slope that drives our nation’s finances into further indebtedness, especially after all the losses that we are incurring over the 1MDB looting. 
  1. While the debate in Malaysia’s parliament over raising the debt limit looks to be perfunctory, the United States seems to be spiraling into yet another bout of partisan bickering over its own debt ceiling. Madness? Yes. But this is the blowback that the US political class has purchased for itself when it walked blindly into the morass of the War on Terror, and the disastrous consummation of its flirtation with nativist no-nothingism with the Tea Party that had eventually led to Trump’s presidency. There is always a price to pay when you play with extremism in the pursuit of narrow parochial interests.  
  1. Here’s an interesting and totally expected thing that usually happens when you conflate a succession race with a plan to recover from a pandemic: the politics will almost always get in the way. What is Singapore thinking? Like mentioned in the article, this is not something that would have happened during Lee Kwan Yew’s time. Another chink in the armour, then, for the PAP government under Lee Hsien Loong? 

Three Things I am Thinking about Today #4

  1. Turkey threatens to buy new missile system from Russia: is this the beginning of the end for Turkey’s membership of NATO? And will this lead to even sharper realignment of global geopolitics?
  2. The third MRT line’s alignment has been finalised and awaiting approval. I hope we do get this 3rd line done: Kuala Lumpur needs to step back from the brink of urban car congestion, and embrace more active modes of mobility. The alternative is unsustainable. 
  3. Like many of my generation, I have pegged a lot of my self-esteem and self-worth to my work. This is a good reminder that there is so much more to living than just what I do for a living.

Budget 2021: A Walk into the Unknown?

As the debate over the 2021 Budget rages on in Parliament, we are faced with a possible outcome that has not been on the table for at least my own lifetime: the likelihood of a Budget Bill that is voted down by Parliament.

Firstly: how likely is this? The Government was clearly anxious enough about the likelihood of this Budget passing through Parliament, that it actually triggered the option of an Emergency (which was thankfully rejected by the Yang Di-Pertuan Agong). Instead, the Ruler exhorted all parliamentarians to set aside party affiliations, and lend their support to the Budget Bill, keeping in mind the ongoing economic carnage that has been wreaked by a global pandemic that is raging unabated.

And yet, the Agong’s call has been left unheeded. 

Parties on both sides of the aisle – in weighing their own political interests – have made their own demands on the Budget, raising the spectre of a rejected Budget

On the part of the Government, they have not yet fully given up on the hopes of triggering an Emergency; sprinkled throughout the daily newspapers over the past few days are the comments of various rent-a-quote professors, eager – no doubt – to ingratiate themselves with those in office by recalling their so-called merits of an Emergency that would allow a Budget to sail through unmolested. 

The more interesting question is: what happens if the Budget is not passed? The responses have been interesting. 

Finance Minister Tengku Zafrul have raised the possibility that civil servants might not get paid if the Budget is not passed. (This is technically correct: a failed Budget Bill could lead to a government shutdown, if the appropriate sums to run the day-to-day operations of the Government cannot be appropriated.

What the Finance Minister has left unsaid, and which DAP leaders have been (almost gleefully) pointing out, is that a failure to pass the Budget Bill will likely, based on Westminster convention, lead to the fall of the Perikatan Nasional government. A new Prime Minister needs to be appointed, and the Government formed by that Prime Minister will need to pass a Budget Bill in Parliament. 

It is this grim outlook for the Government that has led many within the Perikatan government to still raise the option (almost longingly) for an Emergency, so that a Budget could be passed without the Government of the day incurring the risk of stepping down. 

Personally, I don’t think an Emergency would be likely, or desirable. Could the Government fall? I would give it a 30% probability that something like this could happen. More likely is that some sort of last-minute compromise would be cobbled in order to come to a Budget that enough Parliamentarians would deign to vote for. 

The alternative may well be uncharted waters for Malaysian democracy!