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Wednesday, June 6, 2012

Economic Gloom to cut BN Popularity AT Polls?


KUALA LUMPUR : A delay in calling for polls may cause a further drop in voter support for Barisan Nasional (BN) should the euro-debt crisis hit home, making it harder for the ruling coalition to continue funding cash handouts and maintain its popularity, pundits say.

The Najib administration’s delay in carrying out its slew of government, law and economic transformation reforms has also turned the tide against it with support from the minority Chinese and Indian communities shrinking further based on independent pollster Merdeka Center’s latest round of surveys, the analysts said.

“A delay in polls could backfire. Mind you, there’s the euro crisis, it could come and hit Malaysia,” Kuching-based political analyst Faisal Hazis told The Malaysian Insider.

Economists have said that Greece’s exit from the euro zone could reduce China’s expansion to 6.4 per cent this year, from 9.2 per cent in 2011. Malaysia, along with the rest of Asia, has increased trade with China for years and the Asian giant is now its top trade partner.

Speculation has been rife that Prime Minister Datuk Seri Najib Razak (picture) may call a general election only after tabling the 2013 Budget on September 28, more than a month after Hari Raya Aidil Fitri. The window for polls before that date is by July 21 when the Ramadan fasting month begins.

The Najib administration has spent heavily on schemes designed to aid the public cope with the rising cost of living with a massive pay hike for civil servants, giving out book vouchers to students and dishing out a one-off handout of RM500 to low-income households under the Bantuan Rakyat 1 Malaysia (BR1M), which resulted in the PM’s personal ratings to jump in previous polls.

“Handouts are just a distraction from the larger issues of how the country is managed and whether there is real transformation.

“The government can top up with more goodies during the next Budget, but support of Malay voters may already have achieved a peak,” said Faisal, who lectures in politics and international relations.

He pointed to the latest Merdeka Center polls which showed 79 per cent of Malay voters were satisfied with Najib’s leadership, up from 74 percent in February.

But the Universiti Malaysia Sarawak don said there was a “significant percentage of hardcore opposition voters among the Malays who, despite the issues played and handouts given, will support PR”.

“Before the feel-good factor subsides, the government should just call for GE. If BN waits any longer, it can lose Malay voters because the feel-good sentiment has gone off,” Faisal said.

He said non-Malay voters generally feel the government lacked political will to carry out meaningful reforms.

He pointed to the Najib administration’s backtrack on the idea to level the economic playing field by ridding in stages a lopsided policy favouring Bumiputera businesses under the New Economic Model (NEM).

The government’s tardiness in releasing inmates held in Kamunting under the Internal Security Act (ISA) despite having repealed the law that allowed for detention without trial also caused the ebb in voter support, he said.

Faisal noted the government’s “harsh” actions against demonstrators pushing for electoral reforms to be speeded up ahead of polls at the April 28 rally would backfire, noting the plunge in support from Chinese voters, who form a significant urban base.

Another political analyst, James Chin, said it was notable that “Indians are going back to PR again”.

He pointed to the Merdeka Center survey last month, which saw 72 per cent Indians saying they were satisfied with Najib’s leadership compared to 80 per cent in February, down eight percentage points in just three months.

He said the dip in support from the traditionally pro-BN Indian community could indicate a shift to the opposition Pakatan Rakyat (PR) over frustrations with BN in addressing its concerns.

“It could be that the government-rolled out programmes for the Indian community are not really working,” said the lecturer at Sunway Monash University, citing the government’s project to help stateless citizens as an example.

Wan Saiful Wan Jan, the founder of think-tank Institute for Democracy and Economic Affairs (IDEAS), echoed the call for swift elections, which must be held by April next year.

He said there it was unlikely the BN would pull more support from fence-sitters by waiting out the economic gloom as voters had made up their minds.

“The biggest factor for Malays coming back to Najib is the fear factor of losing political power. These strategies of using fear and handouts seem to be working.

“The waiting game benefits PR because they can dig for more scandals and allegations that government have not done their duty,” Wan Saiful said.

He warned that voter support for the BN will likely dwindle the longer the election wait drags out.

“I don’t think BN will get a two-thirds majority win. Najib’s high ratings will not translate into votes for BN.

Possibly votes for him personally, not for Umno or BN as a whole,” the IDEAS chief said.

Ida Lim

49 comments:

  1. It is entirely possible that the 13th general election is postponed to early next year.

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    Replies
    1. BERSIH 4.0 is still on going so I don't think the GE will be held for this moment.

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    2. GE should be postpone till it is sure that the election will be held clean and fair.

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    3. I would prefer to have the election this year.

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    4. Even the RCI have not started yet. 13th GE most probably in next year.

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    5. Just wait for the official announcement from the Prime Minister. His full terms has not end yet.

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    6. Mandat sampai tahun depan. tunggu saja pengumuman dari PM.

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  2. Government project, the biggest private property development in Penampang. The complex which occupies slightly more than four hectares (10.5 acres) is hailed as a technology and science centre to rival those on the peninsula (Low Yat Plaza in Kuala Lumpur and Digital Mall in Petaling Jaya) and Tokyo’s Akihabara “electric town” where a complete range of computer wares, electrical and electronic goods are sold.

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    Replies
    1. Soon, no need to go far when more things can get easily at your own town.

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  3. Sabah could potentially become Malaysia’s centre of oil palm biomass development under the National Biomass Strategy. The 1.4 million hectares of oil palm plantation and its relative under development are the foundation for the optimism.

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  4. Never compare development with political interest. After all, we are dealing with humans and not robots.

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    Replies
    1. Never politicize development, in the end, its the people who suffers.

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  5. Mungkin serba sikit akan menganggu pergerakan politik di Malaysia kerana masalah ekonomi dunia yang melanda.

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    Replies
    1. Definitely it will affect the political environment when economy is in gloom.

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    2. kerajaan kena bijak mengawal kestabilan ekonomi nagara.

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  6. Apa yang membimbangkan ialah pembangkang menentang habis habisan kerajaan hanya untuk mendapat nama.

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    1. Government are never being appreciated by the opposition. Opposition always try to find the government's fault to brainwash the people into supporting them.

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    2. Opposition should not mislead the people when the development are actually good for the people and nation.

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  7. Whatever it is, BN will win it all.

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    1. BN will win if majority of the people support them.

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    2. And BN will definitely win again if the opposition cannot unite and cooperate to have the 1 on 1 fight. Star just slammed SAPP for using dirty tactics, looks like their relationship is not getting any better.

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    3. The power is in rakyat's hands.

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  8. I hope the GE will be held this year.

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  9. I pray for a fair and clear election this time.

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    Replies
    1. Guess that is what the rakyat really want in this country. A free-manipulation election.

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  10. State development is entire different from politic interests, so I suggest we should get this clearly.

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    Replies
    1. But we cannot control what people might think and say about this. Even religion also being politicized.

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  11. We refuse to be deceived by anyone this time around.

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  12. Vote wisely for the right party.

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  13. Sigh, another issue to discuss about.

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  14. Mengenai ekonomi juga adalah antara penilai yang dibuat oleh rakyat untuk menentukan kerajaan. Ekonomi yang kurang baik akan mempengaruhi sokongan rakyat terhadap kerajaan tersebut.Maka kerajaan perlulah memastikan penyelesaikan masalah ini.

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  15. lewat sangat ka pilihanraya diadakan?? sudah habis tempoh lima tahun mandat??

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  16. ketika ada ura2 bahawa pilihanraya umum akan diawalkan, pemimpin2 pembangkang juga yang sibuk buat kritikan dan spekulasi.. hinggakan pemimpin2 Pakatan sendiri mengumumkan jika pilihanraya umum diawalkan mereka bercadang mahu mengadakan pilihanraya berasingan..

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  17. Sabah’s economy is off to a strong start this year, owing to investments worth several billion ringgit secured in the first quarter of 2012, as well as an economic plan focused on creating wealth and empowering the business community.

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  18. To date, the Sabah Development Corridor (SDC), launched in 2008, has amassed a remarkable RM107 billion (US$34.87 billion) in investments. These funds will sustain 31 entry point projects (EPPs), which are expected to generate RM35.5 billion (US$11.57 billion) in incremental gross national income, along with roughly 144,000 new jobs, according to Musa Aman, the chief minister of Sabah.

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  19. These projects included: the Sabah Oil and Gas Terminal in Kimanis, which was projected to generate RM6.3 billion (US$2.05 billion); the palm oil industrial cluster (POIC) in Lahad Datu, worth RM8.6 billion (US$2.8 billion); and coastal tourism development, expected to contribute RM8.6 billion (US$2.8 billion).

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  20. According to Muhyiddin Yassin, the Deputy Prime Minister, 92 per cent of investments required for these projects would come from the private sector.

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  21. The SDC would also benefit from the newly launched RM4.7 billion (US$1.53 billion) ammonia and urea plant in Sipitan. Prime Minister Najib Razak expected the new plant, commonly referred to as Samur, to have spin-off effects for many industries – such as agricultural chemicals, plastics, and pharmaceuticals – sparking a cycle of industrial growth.

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  22. Other projects in the SDC included the Gleneagles Medical Centre; the integrated Jesselton Waterfront and Sabah International Convention Centre in Kota Kinabalu; the International Technology and Convention Centre in Penampang; the Dalit Bay integrated tourism resort in Tuaran; the Sipadan Mangrove Resort; and the Sabah Green Energy geothermal power plant in Tawau.

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  23. Costing nearly RM5.1 billion (US$1.66 billion), the projects have received around RM500 million (US$162.93 million) in federal funds.

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  24. Aman attributed the SDC’s strong standing to government efforts and the private sector’s overall confidence in the state. He drew attention to the initiatives of the Sabah Economic Development and Investment Authority (Sedia) to endorse the government structure for EPPs, which then paved the way for Sedia to become the one-stop authority for attracting, processing and tracking large investments.

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  25. Robust investments in the SDC dovetailed nicely with the Malaysian state’s development policy. In early 2012, for example, the Sabah Progressive Party (SAPP) launched its economic plan for the state, with special emphasis on wealth creation and empowering the business community.

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  26. In introducing the plan, Mohd Noor Mansoor stated his party’s confident forecast that the state’s revenues could reach RM5 billion (US$1.63 billion) by 2015. This figure did not include the 20 per cent in petroleum royalties Sabah could potentially collect, thus giving it additional annual revenue of RM3 billion (US$977.56 million).

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  27. “This budget will be able to sustain the momentum of Sabah’s development and allow us]to save for the future. The revenue is expected to be derived by way of close monitoring of royalties on oil and gas, including those new, significant discoveries in shallow waters off Sabah, producing an additional seven billion standard cu feet per day,” Noor said.

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  28. Part of the government’s strategy toward wealth creation was to shore up savings and keep a close eye on the state’s debt. As part of the economic plan, the SAPP government had committed to depositing RM100 million (US$32.59 million) each year into the Sabah Heritage Fund (SHF), created to be a ‘savings fund for future generations’.

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  29. As well, the SAPP had resolved not to take any more sovereign loans that would pose a direct risk to the State Treasury upon the retirement of an RM544 million (US$177.26 million) bond taken by the state administration in 2010.

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  30. However, Sabah still had a number of challenges to confront, including the challenge of how to better capitalise its agricultural sector, which had been slow to attract investments, contributing RM3.2 buillion (US$1.04 billion), or roughly 5.5 per cent. This reality was more troubling in light of the fact that Sabah had a wealth of natural resources, such as oil and gas reserves, timber, oil palm, rubber and cocoa.

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  31. Notwithstanding these roadblocks, the future of Sabah’s economy looks bright. The strong support extended to the business community by the government provides great assurance for the private sector.

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  32. Furthermore, with mega-projects in the works and large-scale investments continuing to pour in, there will be increased opportunities for job creation and infrastructural development, thus paving the way for a more inclusive growth.

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