COMMENT A budget review if oil drops below US$25 came as a no surprise for all Malaysians and was a real no-brainer (i.e. saying the obvious).

Prime Minister Najib Abdul Razak's assertion that the government could not deceive itself and must always be realistic in determining national expenditure is seen as mere words too little, too late.

The government has revised the gross domestic product (GDP) this year to between 4.0 and 4.5 percent, notwithstanding.

Najib is now ostensibly driving growth through measures that allow the rakyat as consumers to spend and spend, despite household debt having shot beyond 140 percent to disposable income, and above 90 percent to the GDP.

This domestic-driven growth is another no-brainer, too.

When Malaysia is stuck in between the emerging low labour-cost economy of Vietnam and Indonesia, and incapable of doing a 'catch-up' with the higher performing economies of Singapore, Taiwan and South Korea, the dwindling Foreign Direct Investments (FDI) numbers of late 2015 are very telling - and numbers don't lie.

Statements that we no longer rely on FDI spoke volumes on our admission of defeat in competitiveness, due mainly to our failure to become a higher value-added economy driven by skilled workforce and human capital with higher productivity.

So, what kind of economy is our government promoting when the majority of us must be heavily in debt, and having to 'cannabilise' our future savings in order to promote growth?

Wake up, sir. It is the economy...stu***! (pun intended).

I’ve said it before that we fear that Najib-Putrajaya is clueless on how to address the shortfall in revenue as 'fiscal space' is lost due to decades of incompetence and reckless management of the economy - never mind the 1MDB fiasco, RM2.6 billion donation and the litany of scandals.

I've alluded then that they will increase the levy on foreign workers (a total of 8.3 million, both documented and not) and lo and behold, I am more than vindicated!

The Federation of Malaysian Manufactures (FMM) now "sees red" over the monstrous hike in workers' levy. Deputy Prime Minister Ahmad Zahid Hamidi unashamedly and obliviously admitted that they are in to collect a cool extra RM2.5 billion. But at whose and what expense, sir?

Business sustainability is surely at stake. Jobs - both for local and foreign workers - will also be at stake when manufacturers are not able to sustain their operations.

While economists and the opposition have talked about how we must reduce foreign workers in order to graduate into higher order economic activities - and hence, reducing the remittance economy that has drained billions annually - all that Najib-Putrajaya had been capable of doing was to up the levy! How extremely deplorable and despicable.

It is time to let the rakyat understand it all:

  1. Are there any parties besides the government that will gain from this hike, i.e. the supply chain?
  2. Why the need for the sudden hike? And some more than 100 percent? Are we to be told that these were 'novel ideas' unthought of earlier before the budget review?
  3. Why were industries not engaged as stakeholders before decisions were made, when they are taking the brunt of these hefty hikes?
  4. Does the government understand the full implications of its actions, especially in this dire time and strong global headwinds in 2016?

DR DZULKEFLY AHMAD is Parti Amanah Negara strategy director.