Posted by
wetbenang
at
Friday, September 22, 2006
AND THIS IS ROCKET SCIENCE?
The New Straits Times quoted duly elected Science, Technology and Innovation Minister recently as saying that the country's bid which started 11 years ago to woo home Malaysian scientists who resided overseas has failed. He said, in 10 years, only 23 scientists came back, only to return to their adopted countries.
And the Prime Minister, said the Minister, was now expected to announce a new scheme soon to woo such talents again -- with new and better perks.
And what would these perks be, you ask?
The Minister said the scientists would not need relocate completely but would just need to spend three to six months a year here. It would be as if they were enjoying the "Malaysia My Second Home" programme, he said.
Other perks would include better pay.
"We understand the problem. For example, a Malaysian professor in an Ivy League university in the US, whose wife is also an American and receiving a high salary, may not want to return to Malaysia", he was quoted.
That was really rich, almost rocket science, coming from a Minister in charge of Science, AND Technology, AND Innovation. And 11 years later!
Now tell me that I should not be worried.
Earlier this month, the Government proposed next year's budget that would appropriate about RM159.4 billion, which is 16.5% higher than the 2006 budget. This is highly expansionary, as public spending rose by only around 5-9% a year in each of the previous five years. (And if I'm not mistaken, the Government's annual spending used to be capped at RM100 billion).
One reason why the Government believes it can afford such largesse is that income from the petroleum sector has been strong and is expected to remain so in 2007. The budget assumes an oil price of US$70 a barrel, and the Government expects nearly 40% of its income next year to be oil-related, boosted by dividends from PETRONAS and from petroleum income tax.
Total revenue is expected to rise 11.8% to RM134.8 billion in 2007, with oil-related revenue accounting for 40% (about RM54 billion) of the total. In 2006, oil-related revenue is said to account to RM45 billion (37% of total revenue); in 2005 it was RM30.0 billion (29% of total revenue).
Taxes account for more than 70% of the Malaysian Government's total revenue.
Now, tell me again why I should not get worried.
I said before that I'm not an expert in the economy, but it sure looks like the Government is overly reliant on oil-related revenue for its income. Oil prices will not remain at US$70 per barrel forever. Last week, it touched about US$60.
It is also a known fact that the pool of taxpayers in the country has gotten smaller.
If no one is not doing something, and quickly too, about expanding this pool again or diversifying the sources of revenue, I would imagine we are heading for disastrous times.
So, tell me again why I should not be worried.
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