The irrelevant facts by 'ex-banker'

By Dullie Hj Mari

Yong's flawed 'new hope' economic carried out in Free Malaysia Today dated January 21, 2012. As the writer claimed the excerpt appeared in Sabahkini.com was written by an ex-banker.

The rebuttal made by the ex-banker on Datuk Yong declared statement "the bond is like spending tomorrow's money today" of which the ex-banker claimed SAPP's ignorance of economic theory and the party's to understand the financial market.

The ex-banker goes beyond by bringing the issues such as the legality and the quality of the bonds. The superiority, rating AAA, as assigned by RAM (Rating Services Bhd) has never been the contention of Yong's arguments.

Actually, this ex-banker simply missed the whole point of contention. Datuk Yong had never question the superiority and the legality of the bonds issued.

The issue that need to be addressed, why does the State Government resorts of borrowing with RM3 billion in its consolidated fund. Why commit unnecessary debts when you have the money? Is it true that the State is really having the money?

The issue on how the financial market operates is understood but it is not the core of the subject. It is too difficult to comprehend on the rationality as to why the government willingly to spend extra cost of 4.58% annually on interests. What is the rationality of having high saving and unspent to the extent of borrowing? Has it been spent wisely to stimulate the economy or just only benefiting few cronies? Is the money spent in Sabah or outside the state? The most important issue on the real economic benefits derived from this money to the people of Sabah.

One shouldn't forget Sabah is one of the poorest States and out of 10 of its population 4 are poorest. This is a fact! Why is it so? Is that what you call as a sound and prudent financial policy? The answer is very simple even a layman in the kampong knows better. What is happening to Sabah basically is due to poor financial mismanagement and abuse of power. But what is amusing this particular ex-banker who claimed to have vast knowledge on financial markets is not the smartest after all. What he wrote merely skirting around to hoodwink and hiding facts.

He knew the state is managed by leaders that are only interested to harvest and pillage the wealth of Sabah. They do not have agendas to improve the livelihood of the people. So don't dream the GDP per capita will ever improve when the cost of living continues to increase. In the years to come more Sabahans will be in the state of hopelessness and in misery.

Now the next issue how the money raised was spent. Are the people of Sabah really economically benefiting from the projects undertaken, if so how, or is the money raised and loaned to private investors or cronies for private ventures. Just tell the people of Sabah on the real economic values derived from this money. That should prove your claimed that the government is transparent and accountable.

Every Sabahan pray hard and hope this money is not spent for easy loans on private investors that make it weird for the State government to act as a 'guarantor'. The worst scenario if those ventures are undertaken outside Sabah.

There is no need for him to drag and skirt around under the theory of financial market to substantiate something on the basis of lies and egocentric. Remember the bonds will mature in 2015 and the economic spin-offs as you mentioned none existed and only at his own imagination. What is obvious that you should acknowledge every Sabahans will share the burden to pay at lump sum upon its maturity period?

Yong's statement is not ignorance of economic theory or financial market but rather a reflection action by a responsible leader on how rakyat money should be spent wisely. It is a view of being realistic and responsible approach on how the public fund should be spent tactfully in accordance with the existing financial procedures.

SAPP understands well and will initiate various measures to alter the economy of the State as specified in its economic plan. SAPP firmly committed that the economic plan constitutes various measures to transform Sabah's economy and to propel the momentum of its growth at the desired rates.

SAPP will push the economy towards full employments; the Cabotage policy imposed must be stopped and other forms of monopoly and encourage open market competitions. Besides, in this era of globalization and liberalization, SAPP will make attempt to regulate business and industries that will benefit the business community of Sabahans. SAPP will seek quality investments from internal and foreign investors especially in the sectors and industries with value added and knowledge based investments.

SAPP realizes on the very importance of food production. SAPP will exploit and deploy our resources to the maximum especially in the production of rice. SAPP is fully committed that Sabah will achieve the status of self sufficiency in the production of rice by 2018.

SAPP's economic plan is not a gimmick but a realistic and achievable plan.

Dullie Haji Mari is Sabah Progressive Party (SAPP) Treasurer-General