February 24, 2010

Malaysia: More Backpeddling?

Malaysia's Barisan Nasional Government (BN) has now become an expert in back-peddling,so it seems.


It started with the much touted policy to get rid of more than 15-years old car off the road. This was to increase the sales of Proton and Perodua cars. However, they came head-on with 'old-timers' who are in love with antique cars such as the 'uncles' from FELDA plantations and ex-teachers who loved their well- maintained Volkswagens. So, they scrapped the policy for the RM5,000 trade-in for really old cars. The move was a success and it certainly propped the number of cars sold for Proton. As far as Perodua is concerned,  it just accelerated its sales of  Myvi.

Then they back-pedaled on the 5% real property gains tax. The all-encompassing policy of taxing property that is sold, regardless of how old the property was, came under heavy volley of fire. Apart from the property developers who complained it may negatively affect the industry, first time sellers intending to upgrade felt this as wholly unfair.

And so after some thumb twiddling, it was amended that only properties sold 5 years  before the Sales and Purchase Agreement will attract this tax.

Next, came the policy decision to limit the subjects to be taken at the SPM. The brand-new Minister of Education, to ensure he leaves his mark,capped the maximum subjects at 10. As usual he raised a commotion when he left vernacular education subjects out of this maximum 10. So, a component Barisan Nasional party through NGOs, clamoured that the pupil's mother tongue be included.

The Minister grudgingly relented and allowed 12 subjects but he put in a caveat. Only the 10 subjects originally sanctioned and not the additional two subject papers will be considered for government scholarships. That threw a spanner into the works until this day.[The worse policy decision by far is the reversal to Bahasa Malaysia in teaching Math and Science!]

Yesterday, they just pedaled the much discussed subsidy scheme procedures for petrol in May 2010. We do not know why they have decided on the need of a better system. Thne they also deferred on the new tariff for Tenaga?

What do all this portend?

Very likely it is because of the impending state elections in Sarawak where the fear is very real this time that some native areas may succumbed to the opposition because of unresolved native issues. Apaprently, urban seats are also under siege.

Or is it because the General elections is going to be held with 12 months using the Sarawak elections outcome as the bench-marker? This is possible in order to resolve many issues, most particularly, the Perak political situation,outside the court system, for once and for all.

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