Untuk Fahaman "Profesor" Zainal Kling Dan Yang Sewaktu Dengannya

BAHAGIAN 1

First of all a reader sent me this link and the information - thank you. 

It is a very long list of government projects, government businesses, political crony businessmen, government linked companies etc from the tenure of Dr Mahathir, Badawi, Najib, Dr Mahathir again that have all gone broke, gone bust, gone out of business or just gone. 

Zaman PM4 (1981-2003)

1. MAMINCO - bangkrap
2. MAKUWASA - bangkrap
3. PERWAJA - bangkrap
4. BMF - bangkrap
5. BNM - rugi RM31.5 billion
6. Forex - gagal
7. Bank Bumi - rugi
8. BAKUN - rugi
9. MAS - rugi
10. ERL - kerajaan terpaksa bayar kroni
11. PKFZ - rugi
12. PUTRA LRT - bangkrap-bailout
13. STAR LRT - bangkrap-bailout
14. MONOREL - bangkrap-bailout
15. BAS INTRAKOTA - bangkrap
16. SILTERRA - rugi
17. JARING - gagal
18. MEC ELECTRONIC GAMBANG - bankrap
19. MIMOS - gagal
20. HICOM - gagal
21. EAGLE PLANE
22. IPP - rugikan TNB berbilion
23. TNB - rugi
24. PROTON - rugi
25. FIMA Rantei - gagal
26. SOGOSOSHA - gagal
27. JUDICIARY - dicemar
28. UMNO - diharamkan
29. DAYABUMI - gagal
30. TIME dotCom - rugi
31. KONSORTIUM PERKAPALAN - rugi
32. MISC - lingkup
33. IWK - rugi
34. DASAR PANDANG KE TIMUR - gagal
35. PLAZA RAKYAT - terbengkalai
36. JB WATERFRONT CITY - terbengkalai
37. KRONISME - berleluasa
38. HARGA BARANG - naik

39. RINGGIT - jahanam daripada RM2.20 kepada RM3.80 (vs USD)

40. Keretapi Tanah Melayu - rugi

41. Pos Malaysia - rugi

41. SUKAN KOMANWEL - masih ada yang tak dapat payment
42. EKUITI BUMI - naik tak sampai 2% selama 22 tahun
43. PIRATISATION - 200 syarikat awam difaraidh kepada kroni, dan anak-anak
44. PENAPIS MINYAK - 22 tahun tiada penapis minyak sendiri terpaksa import dari Singapura
45. SURAT WAHYU - boleh menang tender, loan boleh approve, boleh lari dari penguatkuasa, syarikat RM2 boleh dapat projek juta-juta
46. MINYAK NAIK - dari 89 sen hingga hampir 3 Ringgit masa 1998.
47. Boboi MB Kedah 2 Kali - bailout
48. PM4 Bapa Baillout
49. Beli 88 pesawat pejuang SKYHAWK,44 tibe,baki 44 tersadai di usa.

50. Perwaja - rugi billion,  bangkrap

51 inventor Arab - gagal beratus juta

53. kroni billionaire - rugi (Amin Shah, Abu Zahid, Tajuddin Ramli, Halim Saad, Wan Azmi)

54. Renong - rugi

55. MRCB - gagal

MR :  Ada lagi masih banyak tertinggal

Zaman Badawi / Najib

53. 1MDB rugi billion

54. NFC projek lembu condo - rugi dan gagal

55. Felda rugi billion

56. Khazanah Nasional rugi billion

57. Tabung Haji rugi billion

58. LTAT rugi

61. KWAP rugi billion

62. Harga minyak petroleum jatuh

63. Harga minyak sawit jatuh

64. Utusan Malaysia bangkrap

65. GST menghancurkan ekonomi negara / ekonomi Melayu

I have added a few names to the above list and if you wish to add anymore please send your comments. Thank you.

Ok for the attention of  Profesor Zainal Kling, what does all this rugi, bangkrap, sudah bungkus mean? 

First, many of the companies and projects above involve taxpayers money.  All sudah kena burn. Hancur hangus.

And also when these companies / projects, cronies, billionaires go bust, it means less corporate taxes for the government. The Malaysian economy suffers billions of Ringgit losses.

Apabila syarikat - syarikat di atas itu gagal, bangkrap, rugi dsbnya maksudnya mereka tidak lagi menjadi sumber kutipan cukai bagi Kerajaan.  

Semua kaum dan lapisan masyarakat serta seluruh negara kita akan rugi.

Sekarang ekonomi kita sedang tenat, penat dan tak lama lagi punat pun susah nak nampak.  Kalau punat pun tak nampak, maksudnya there will be totally nothing to get excited about.

BAHAGIAN 2

Here is a graph of the Malaysian government Budget 2019.

Prof Kling, please note that of the more than RM300+ billion Budget allocation, more than RM200+ billion is for Operating Expenses.  Maksudnya duit untuk bayar gaji Civil Servants, bayar pencen, bayar gaji Menteri, gaji Wakil Rakyat etc. 

The single largest component of the Budget was money used to pay the salaries and the pencen of the 1.6 MILLION Civil Service or Penjawat Awam. That includes people like you, Prof Kling.

Now please go back to that list above. How much taxes do you think the government can collect from all those companies and projects that have gone bangkrap, rugi and gagal? 

Can Utusan Malaysia pay any taxes? 
Can projek Lembu Condo pay any taxes? 
Can Felda FGV pay taxes? 
Can Tabung Haji Heavy Industry pay any taxes? 
Did 1MDB pay any taxes? 

The answer is ZERO or close to ZERO.

BAHAGIAN 3 

Civil Servants who are paid from taxpayers money VERSUS private sector businesses that generate tax revenues. 

There is a big difference between the Civil Servants who are paid from taxpayers funds versus the private sector which generates tax revenues. 

Civil Servants who earn more than RM3000 a month also pay taxes. But the important difference is that they are  paid their salaries from tax revenue.   So when Civil Servants pay income taxes - they are simply returning some of the tax revenues back to the government. The sum total of the government's revenue did not increase. 

For example (say within the same year) the government collected RM100 tax revenue. It paid RM10 salary to the Civil Servant. Balance with the government is RM90. The Civil Servant pays back say RM2 in taxes. The government's net position at year end is RM92. No increase.

The private sector on the other hand, especially the businesses, generate their own wages from its own effort. No effort means no salaries, wages or profits. The private sector also pays the biggest amount of tax revenues to the government. When the private sector pays taxes it comes from generating their own wealth and income. 

Now let us do some simple calculations. Matematik Darjah Enam.

Lets say a Civil Servant Grade 48 is paid a salary of RM5,000 a month.  One year is RM60,000. This money must also come from the government's tax revenue (daripada hasil cukai kerajaan).

Bagi senang kira, bagi senang cakap, let us say that on the other side there is a  Syarikat Ah Chong that pays corporate taxes of  RM5,000 a month. Or RM60,000 a year.

So there is a balance. Syarikat Ah Chong pays taxes of RM5,000 a month. This money is used tp pay the monthly RM5,000 salary of a Civil Servant Gred 48.

Now here is how Ah Chong generates that RM5,000 monthly. 

Corporate tax is 28%. This means to pay RM60,000 corporate tax per year, Syarikat Ah Chong must make a pre tax profit of  RM60,000 / 28% = RM215,000.

So Syarikat Ah Chong must generate untung or profit of RM215,000 a year. 

Only then can Syarikat Ah Chong pay corporate taxes of RM60,000 per year. 

Only then can this money be used to pay the salary of just ONE Civil Servant Gred 48. 

Now lets say that Syarikat Ah Chong is a clever business and they can generate a pre tax profit of 10% from their sales revenues.   (This means for every RM100 of sales they get untung RM10 only (after tolak bayar gaji pekerja, bayar api, air, sewa kilang, raw materials etc).

This means Syarikat Ah Chong must generate sales revenues of RM215,000 / 10% = RM2.15 MILLION per year.

Only then can Syarikat Ah Chong generate 10% untung (profit) of RM215,000.

Only then can Syarikat Ah Chong pay corporate tax of 28% x RM215,000 = RM60,000.

Only then can government pay ONE Civil Servant Gred 48 a salary of RM5000 a month (RM60,000 a year).

This is where your salary as a Civil Servant comes from. 

This is how the equation "connects" the private sector and the Civil Servants' salaries. 

Prof Kling, kalau nak harap duit minyak pula, Petronas sudah tenat, Felda sudah penat, Utusan Malaysia sudah tutup, Tabung Haji sudah lingkup, Proton sudah jual, MAS sudah crash landing. Semua sudah pelingkup.

We only have the private sector businesses, factories, traders and retailers to depend on. As long as they can generate sales and revenue, and from there they can make profits and from there they can pay corporate taxes - then a lot of people (including you) can be happy.

BAHAGIAN 4  - Aakhirul dakwaanan wa akhirul kalam.  

Now here is the most important part to bear in mind. 

Everyday I hope to learn something new. 

Here is something I learnt most recently.

These two pictures below (examples only ok) show a Bulgari boutique and a Yves Saint Laurent showroom. Both are in Paris, France. Both boutiques sell accessories for men and women - watches, handbags, clothes, perfumes etc.

Notice the expensive ID (Interior Design) of these boutiques. The expensive furnishing, high quality and very expensive fittings, displays, lightings, decorations etc. They spend millions of Ringgit just to decorate their showrooms.

Now I found out that there is actually an international  'world class' industry that specialises in manufacturing the furnishings and the fittings for these types of boutiques all over the world - especially in Europe, the US and in countries where labour cost is very expensive. 

(When my wife and I want to renovate our kedai emas we just call our local renovation contractor - wooden cabinets, tempered glass, stainless steel grill - local style lah). 

But for the high end boutiques in Europe, USA etc a whole industry has developed that supplies furnishings, fittings, display units and decorations that are custom designed and custom manufactured. And this is a world class business.

The Bulgari or YSL boutique in Paris will call their architects and Interior Design specialists and ask them to "design" a new outlet. Their architects and ID fellows will know where to source their requirements - from Europe, from China, from Vietnam or from (jeng jeng jeng) Malaysia. 

I found out that Malaysian companies (the Syarikat Ah Chongs) have indeed penetrated this market. There are Malaysian companies who design, manufacture and install specialised furnishings and fittings for high end showrooms in Belgium, France and other countries in Europe and the USA.

So let us hope that they can make at least RM2.15 million from each showroom. 

From which they can generate RM215,000 pre tax profits. Insya Allah.

From which thay can pay RM60,000 corporate taxes. Insya Allah.

From which the government can pay the salary of just ONE Gred 48 Civil Servant. Insya Allah.

Prof Kling, kalau nak harap duit minyak pula, Petronas sudah tenat, Felda sudah penat, Utusan Malaysia sudah tutup, Tabung Haji sudah lingkup, Proton sudah jual, MAS sudah crash landing. Semua sudah pelingkup.  

Lets just let Ah Chong do what they do best. 
Please try to understand this equation.
Just leave them alone and let them do what they do best.