Is Umno ceding the middle ground?

COMMENT | Umno’s position seems to be becoming a little dicey what with all its mixed messages.

In fact, being the leader in the ruling coalition, Umno is in danger of possibly losing an election because it is no longer able to woo the middle ground. The middle ground has, in fact, been shifting since 2008, but not in favour of the ruling coalition.

Whether people will come out in droves this Saturday for the anti-kleptocracy rally doesn’t really matter. I, for one, may not turn up at the rally, but it does not mean that I agree with the way things are now – especially since the first civil suit filed by the United States Department of Justice that tried to recover some of the funds it said was stolen from ordinary Malaysian taxpayers.

It is a foregone conclusion. The silent majority, who have been observing the turn of events relating to the 1MDB scandal, are no longer in the dark as to what is happening in the country.

When we see 45 people being rounded up in MACC’s latest swoop in Sabah, we are all asking, “What about 1MDB?” I am sure even Sabahans are now asking the same question.

Household expenses up

There is also the question of the country’s economy. If the country’s economy is doing so well, why are people having to tighten the belt?

Many middle and lower income households are still feeling the impact of the goods and services tax (GST) three years after its implementation, small businesses are winding up, real estate is softening with rental income taking a dip, even in the posher areas.

The lower income group finds it hard to survive, and the middle income group has to pay both income tax as well as the GST. People cannot help but be sceptical each time the government comes out with a positive message about the economy.

I doubt the coming Budget, even if Najib Abdul Razak were to announce a downwards revision for GST, would give many cause for optimism, after having to go through economic hardship, the “good” GDP growth notwithstanding.

In an article by Asian Strategy and Leadership Institute director Ramon Navaratnam, he said that the World Bank in its latest report was “too polite and subtle” to the point that “their intended message and advice is not clearly understood, ignored or even used for positive publicity, or even propaganda.”

With the prime minister promising to announce an “exciting” budget come Oct 28, perhaps with quotes from the World Bank Report, the devil is in the details. With households now reeling from GST and cuts in subsidies, those listening to the mixed messages will only get more cynical.

After all, if the country’s economy is healthy, why would the government still need to cut oil and other subsidies and impose the six percent tax? Is Umno with the people, or is it not?