Story by Chan Lilian
IN conjunction with Labour Day on May 1, Chief Minister Lim Guan Eng reminded the people that on top of the Goods and Services Tax (GST) implementation, income values have eroded and diminished due to the stock market and our ringgit being the worst performer in Asia in 2014.
“But as a result of its people-centric policies, Penang has succeeded best in Malaysia in bridging income inequality, with our Gini Coefficient improving by 12% in only three years from 0.42 in 2009 to 0.37 in 2012m” Lim said.
The Gini coefficient is a measurement intended to represent the income distribution of a nation’s residents, and is the most commonly used measure of inequality.
“The Penang state government’s decision to establish a scholarship fund through the Penang Future Foundation (PFF) will help workers who are affected by rising prices, rising debt and stagnant wages.
“Malaysians already suffer from the highest personal household debt in Asia at GDP ratio of 87.9%, or RM940.4 billion as at end-2014.
“Scholarships with a maximum of RM100,000 for the entire course through the PFF, provided to all Malaysians with emphasis on Penangites, for studies at local universities will help bright children of ordinary workers,” he added.
Financial assistance from the Federal government has been lacking due to wastage, inefficiency and malpractices.
The RM42 billion ringgit 1MDB scandal and the imposition of the 6% GST has only imposed heavier burdens and hardship on the rakyat in the form depressed stock market values, depreciation of the ringgit and rising prices of goods and services, Lim said.
“Our ringgit has now plunged to its lowest levels in history. All this can be traced to the 1MDB scandal, which has raised serious questions about our credit rating, ability to pay, current account deficit and commitment to plug leakages such as corruption. Under the prevailing harsh economic climate, it is workers who suffer more and big companies that benefit,” he added.
For instance, Tenaga Nasional Bhd’s (TNB) net profit for the second quarter ended February 2015 rose 24% to RM2.16 billion from RM1.73 billion a year earlier. This was attributed to higher electricity sales, lower generation cost due to lower coal price and lower usage of the more expensive liquefied natural gas (LNG) fuel.
“Unfortunately TNB’s higher earnings have not benefited the rakyat, apart from lower tariffs for three months until 30 June 2015, announced on Feb 11 by Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili. The BN Federal government has refused to clarify whether the electricity tariff reduction will be extended beyond that date. Clearly the announcement of the tariff reduction was timed for the Permatang Pauh by-election.
“Whilst the BN Federal Government struggles to manage the economy burdened by corruption, leakages and debt, the PR Penang state government has not only managed to record a budget surplus of RM453 million from 2008 to 2013, we have also turned this surplus into an anti-corruption dividend through direct cash grants to the tune of RM287 million to help the needy and other vulnerable groups,” Lim added.
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