The price of inaction is far greater than the cost of making a mistake.
― Eckhart von Hochheim, German Catholic theologian, philosopher and mystic
The current government should not allow itself to be complacent and overlook potential risks. We can learn from past instances where this happened during the Barisan Nasional (BN) federal government before GE14.
At that time, the nation was embroiled in a major financial scandal, which ultimately led to the downfall of the previous government and former prime minister, Datuk Seri Najib Razak.
It is important to note that during Najib’s tenure, the economy was thriving, with a healthy fiscal position, abundant investments, and manageable national debt.
Although the value of the ringgit was declining, it was still at a manageable level.
Despite the implementation of the unpopular Goods and Services Tax (GST), its progressive nature and exemptions for basic items ensured that those in the lower income bracket were not adversely affected.
However, despite Najib’s efforts and the delivery of promised policies, the government was ousted in the general election. The peak of BN’s unpopularity was in 2015 when the 1MDB scandal emerged. It is worth noting that discontent had been brewing since the previous general election when Najib secured his second term as prime minister.
During that time, Tan Sri Muhyiddin Yassin was dismissed from his position as deputy prime minister.
I remember speaking to Najib’s political secretary shortly after, who defended the decision, stating that as the deputy prime minister, Muhyiddin should have supported the prime minister, and if he failed to do so, he should no longer hold that position.
Following Muhyiddin’s dismissal, Najib reshuffled his cabinet, appointing Datuk Seri Ahmad Zahid Hamidi as the new deputy prime minister and later as the Umno deputy president.
It was a tumultuous period for the BN government, and although public anger and outcry subsided over time, the underlying disenchantment persisted.
There are similarities with the current government. While it may be optimistic to assume that public dissatisfaction with the Madani government has reached its peak and that things will naturally improve from here, it must be acknowledged that, as in Najib’s case, animosity and disappointment will not dissipate easily.
Prime Minister Datuk Seri Anwar Ibrahim is currently facing challenges on multiple fronts, both in terms of the nation’s economy and politics.
The country’s currency, the ringgit, is at a 26-year low, reaching RM4.7965 against the US dollar, its weakest level since the 1998 Asian financial crisis when it hit RM4.8850.
Inflation and living costs are rising, negatively impacting the nation’s fiscal position. The political instability at the federal level has also deterred investment prospects. The national debt has reached RM1.172 trillion, compared to RM686.8 billion in 2017. It is an understatement to say that Anwar and the current government are not benefiting from favourable economic conditions.
This year, the government introduced four new taxes: low-value goods tax (LVGT), capital gains tax (CGT), high-value goods tax (HVGT), and taxes on traditional and complementary medicine (TCM).
Additionally, the sales and services tax (SST) increased from 6 to 8 per cent, with its scope widened. The rationalization of petrol and diesel subsidies is expected to be implemented in the second half of this year.
While Anwar and the government argue that tax reform is necessary to bolster the nation’s revenue, the public reception has been lukewarm. It is crucial to thoroughly study the impact of these new taxes before hastily implementing them, as well as the rationalization of petrol and diesel subsidies.
Otherwise, they will contribute to higher living costs and the prices of goods, without being offset by increased income.
Currently, everyone is feeling the financial strain. The cost of living is already high, and it has become even more unaffordable, leading to feelings of dissent and discontent among the public.
If the government does not take action to address its growing unpopularity and instead relies solely on advice from yes-men and the praise of government-friendly cybertroopers on social media, it will lead to its downfall.
The views expressed here are those of the columnist and do not necessarily represent the views of New Sarawak Tribune.
