Tuesday, June 10, 2008

Cash Rebate and Spending Cut: Too little too late.

Never too late you say?
All I can say is that it looks like that the Govt is in crisis mode. Announcing rebate to be brought forward doesnt mean anything much, it doesnt even quell public anger. Bring forward the rebate doesnt do much to our income expectation, its still the same at the end of the year. Its a small drop indeed. As for the announcement of RM2billion spending cut, it means nothing. Thats like saying you are not going on holiday next month, because there is no money.

Well, there never was any money anyway!

The report in Malaysiakini come in late, or was it timed with Berita Perdana at 8pm?

Indeed the Govt is in crisis, not much money left, and in danger of losing control. Too much money has been wasted in the past few years subsidizing petrol in an effort to control inflation. Too much money wasted on mega projects.

Since my posting 2 days ago calling for minimum wage legislation and national social welfare system, a few other people also start calling for implementing these.

READ this one here, also in Malaysiakini. Tony Pua of DAP also suggest the same thing. READ HERE.

Big question is, where we would get the money for social welfare system? I am afraid we have to print the money first, have higher inflation this year and that may deplete our foreign reverves considerably.

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