Madhu Sudan Nair : You deny us the rights as Malaysian to participate in a full economic activity. Well, you can stop us, but can you stop the rest of the world?
The Malaysian Ringgit – Navigating Turbulent Times oval debate was successfully organized on 11th October 2015, by the PGRM Socio Economic Development Task Force (Chairman: Dato’ Dr. Cheah Soon Hai).
PGRM party president, YB Dato’ Mah Siew Keong officiated the event with the attendees from the member of PGRM, public and media.
The moderator was Syed Abdul Razak Alsagoff and the panel of 4 speakers were:
Mr. Madhu Sudan Nair (National President,Kuala Lumpur & Selangor Indian Chamber of Commerce & Industry ,KLSICCI),
Mr. Ong Chee Tat (National Deputy President, SME Association of Malaysia),
Mr. Derek Wong (Executive Director, KAC Advisory Services Sdn. Bhd),
Prof Dr. Wong Kong Yew (Malaysia Hospitality College)
“Let me tell you one thing about economy in this country and you get down to the reality, and it is “STREET ECONOMIC”. What is street economic means? Street Economic means the reality on the ground. It is NOT the text book economic that you explained to the media and to tell what is going on.” Madhu Sudan Nair impressed the audience with this strong opening statement.
“Let’s talk about STREET ECONOMIC. This is the term I pointed because it is relevant to today environment. For a hundred dollar, within a day if it moves around for 10 times, there is a turnover of a thousand dollar. The thousand dollars of worth is based on the initial physical note of a hundred dollar. And that is absent from our economy. We have got 4.8% GDP, and a “fantastic” household debt situation of 87% and is still go up. We have 87% household debt against GDP, and we have 4.8% GDP growth, can you tell me why we have a totally, completely misconcepted economic scenario right here? ” .” Madhu Sudan Nair again heated up the ambient.
In further commenting about the Tran-Pacific Partnership Agreement (TPPA), Madhu Sudan Nair said that upon signing of TPPA , it is supposed to uplift the SMI/SME, and SMI/SME in return should be employing ideally 65% to 75% of employment in any country.
“Now, we have the most impressive figures, and the least understood figures. What it equally means is this, when you have 87% household debt, it means people have got no fund or no money in their hand for spending. When you do not have money for spending, you cannot allow a more aggressive or dynamic domestic economic transaction to take place. That reviews us the velocity of money in the country. Domestic economy contracts, people go bankrupts. Our money has got no value. We have had 10th Malaysia Plan, we have had 11th Malaysia Plan, and we have had all the Malaysia Plan until today, but the one thing that has been neglected is SMI/SME. And they are the one that actually contributed.” Madhu Sudan Nair highlighted the issue of household debt and spending power.
“Now, that is STREET ECONOMIC, that is the reality happening on the ground. RM300,00.00 for affordable housing, 87% household debt, and that 13% left for spending within the local economy. Is signing of TPPA very good? Yes, I agree it is very good, if you have a strong SMI/SME which we don’t. We neglected our SMI/SME so much and diverted the nation attention to what is perceived to be good. Today we pay the price”
“I give you an example, when GST was implemented I was very happy with it. The reason was because it was supposed to address the 3 Million illegal immigrants in the country who are buying the products and not paying taxes. So it is fantastic you have got 3 million people who is now going to contribute to the taxes in the country for our development because we are paying for them. Now what happened was, we charge 6% and we have got 2000 items exempted. And all the basic necessities exempted so now what has happened is that we are supporting the 3 million illegal immigrants and we went backward on what our original objectives were. ” Madhu Sudan Nair illustrated the issue of GST and suggested to reduce it from 6% to 2% and a total tax on all product.
“You stopped others from handling taxi permits and everything else but you have got Uber and My Grab and all other companies coming in from all over the world. They are going to come, you can’t stop because that is one of the condition of TPPA. You don’t stop foreign companies from coming in. So, who are you trying to fool saying that you can actually keep this. Now, you deny us the rights as Malaysian to participate in a full economic activity. Well, you can stop us, but can you stop the rest of the world? I am not against anyone. My heart is with the men on the street. ” Madhu Sudan Nair commented.
Madhu Sudan Nair suggested to look at all these issues from a Malaysian Agenda point of view, and to get everyone in the country involved. TPPA will be good if to start developing the SMI/SME with better participation. There is still time to change, if to focus on SMI/SME with a view on a Malaysian Agenda. If not, TPPA is not going to help out.