Home » General » Wild Horse Ideas Atau Cadangan Kuda Liar Wan Fayshal, Syed Saddiq Dan Mamak Vaksin Dalam 5 Tahun

Wild Horse Ideas Atau Cadangan Kuda Liar Wan Fayshal, Syed Saddiq Dan Mamak Vaksin Dalam 5 Tahun

I have already commented on Wan Fayshal’s strange ideas about printing paper money. By the way Wan Fayshal the QE (quantitaive easing) in the US and UK did not print extra paper money. It was electronic funds simply credited into the government’s accounts. The money was actually “borrowed” through the issue of bonds by the governments. The funds were then channelled largely into government procurement and then other expenditures. Their economies had significant underutilised capacity – both in manpower and production capacity which was able to ‘absorb’ the quantitaive easing. Hence their QE did not push up inflation. In comparison our economy has much less of productive manpower and productivity in the country. 

Syed Saddiq has suggested that the government impose excess profits taxes on the glove manufacturers. This is very flawed reasoning. 

In the real world people earn more  by working hard. Top Glove for example has spent their lifetime building factories all over the world which has now benefitted from the corona virus pandemic. 

It is not right to tax people who have worked hard for their success. There are economic reasons for this. Do read on.

But before that understand that the glove manufacturers are saving lives. They make more than just gloves. Their products (gloves, catheters, PPEs etc) saves lives all around the world.  Instead of taxing them, they should be given incentives to increase the production of their gloves and other products. Why? Because their products save lives. Their products prevent the virus from spreading.

Tak faham ke? Because on the other side, governments all over the world are spending hundreds of millions and billions (including our government) to develop a corona virus vaccine. Many governments, including Malaysia, are already signing collaborations, contracts etc worth hundreds of millions with vaccine developers to get a first crack at whatever workable vaccine comes out first.  Why? Because the vaccine will save lives.

The vaccines, the gloves, the medicines to treat infected patients. the respirators all save lives. 

We are prepared to spend hundreds of millions to pay the companies that can produce vaccines. But we want to impose extra taxes on the companies that makes gloves?? 

It is also a fact that the Malaysian companies that make those gloves are Chinese owned. 

If we wish to impose extra taxes on super profits earned by the gloves manufacturers then we should also give a guarantee of tax credits (tax refunds) if they make losses. 

For example some glove factories in Negeri Sembilan have been hit by the latest corona virus cluster (“factory” cluster). Some factories have been ordered to close. Surely they are making losses. So using the same ‘illogic’ the government should give them tax refunds to help cover the losses. Maybe give back some of that RM400 million they have donated to the government? Bukan duit bapak kita. Duit bapak dia.  

Using the same ‘illogic’ then why not impose extra taxes on other industries that have also made super profits from the corona virus? The face mask manufacturers / distributors have made tons of money. The hand sanitiser manufacturers / distributors were selling one medium sized bottle of hand sanitiser for RM16 !!

The motorbike food delivery companies have made super duper profits from the corona virus. They are the only ones who have expanded their workforce by 20% to 30% or more. Their business has not been better. So why not impose extra taxes on them as well? 

And Proton has had sales going through the roof. Not just because of the cool new models from China (with four wheels ok) but the MCO lockdowns etc have created pent up purchasing  power. People have not been spending money. So they have saved enough money over the past six to nine months to make a downpayment on a new Proton. So Proton kaya lah. So should Proton also be taxed extra?    

There is a reason why I am dwelling at length about this. Wan Fayshal and Syed Saddiq making wild horse announcements will just frighten investors, businessmen and foreigners that the next generation of potential leaders are young punks who have no idea what they are saying.

No one, especially businessmen, like this terkejut-tergempar type of managing a country. It breeds uncertainty. I am sure the glove manufacturers are already making contingency plans (just in case) to move more of their manufacturing to other countries where there is less threat of being hit by sudden high taxes.   

If they do that then there will be less factories and less jobs for our young people. If our young people are unemployed then more of them will become Grab Food delivery boys.  Then you will have to ‘memperjuangkan hak budak Grab Food’ pula. 

With political power in Malaysia now being fractured and non conclusive there is already much uncertainty about the future direction of the politics and policies. So there is no need to add to the uncertainty. 

Finally in our 63 years of independence and despite having a world class Institute of Medical Research, Malaysia has never produced and commercialised a single vaccine. I believe the IMR has done good work and collaborated on malaria and dengue research  etc but still there is not one vaccine that can be attributed to Malaysia.

Yet one guy recently said that he or whoever can develop a corona virus vaccine in FIVE years !! And a HALAL one as well !! 

Well the corona virus vaccines have already been rolled out. As we are reading this, millions of doses have already been delivered. Malaysia is supposed to get the vaccines in a few more months.  That Pfizer vaccine is reportedly over 90% effective. I dont know how they get this sort of feedback but I go with the scientists anyway.

So by the middle of 2021 I believe tens of millions of people around the world would have been vaccinated.  In a year or two a very sizeable population of the world would have been vaccinated etc.  Therefore to bring out a vaccine five years from now would have missed the boat. It may not be commercially viable to be so late.

But the bigger question – can a country with no previous commercially developed vaccine suddenly develop a new corona virus vaccine? 

The other concern that I have is money. Taxpayers money.

Kalau guna duit bapak dia – ok lah. 

Tapi kalau nak guna bapak kita then we have to be careful.

I hope this quest for ‘our own halal vaccine’ does not become another conduit that drains more taxpayers funds.

So let us beware.

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