In it recent editorial, the Asian Wall Street Journal Asia highlighted doubts as to the efficacy of the first stimulus package announced by the Malaysian government. Prime Minister and Finance Minister Najib Abdul Razak responded to this article and articulated his views on how it will work.

He does not mention that of the initial RM7 billion stimulus package, RM5 billion is set aside for F Class contractors linked to Umno which he recently took over as president. He then goes on to say that it is designed to enhance domestic growth and improve market confidence while ensuring that a larger segment of the population will realise the benefits.

Incredibly he goes on to say that there is no additional expenditure in implementing these measures as it will be entirely funded by savings on subsidies as a result of falling global oil prices.

This does not explain what we are going to do about falling oil revenue that was used to fund these subsidies in the first place. Its akin to an individual saying that he will fund his expenditure on reduced taxes but hides the fact that the lower taxes are because of income reduction.

Najib then goes on to say that ValueCap will enhance existing assets and multiply the benefit that the Employees Provident Fund (EPF) already provides Malaysian workers but he does not provide hard figures as to its (ValueCap's) track record since its inception in 2003.

The operations of ValueCap are shrouded in mystery and many who tried to probe for more details came up against a brick wall. ValueCap was supposed to make good on a RM5.1 billion bond repayment to its original shareholders by February.

Ironically it was incorporated in 2003 with a seed capital of the same amount. The government acknowledged in October last year that ValueCap would receive a RM5 billion ‘loan' from EPF.

There was a loquacious debate about this in Parliament November last year where it was insinuated that the loan was most likely to consolidate ValueCaps debts. The second Finance Minister vehemently denied this while not providing pertinent details.

It is also misleading to say that ValueCap will enhance EPF contributor's returns when the amount is insignificant against EPF's total assets of RM330 billion. Furthermore when EPF relies heavily on Malaysian Government Securities (MGS).

These debt papers maturing in three and five years are currently yielding less than 4% at today's prices making it unlikely for EPF to pay out dividends higher than 5% in the coming years which is way below projected inflation figures.

The good old 1980's when MGS yielded above 12% are long over and EPF does not seem to have a cohesive plan to protect contributors against inflation.

Najib's statement that: ‘Malaysia is no stranger to this sort of scrutiny. During the last crisis, our ‘unorthodox' stimulus initiatives were loudly criticised and largely condemned' comes across as patronising as the 1997 financial crisis was a different creature altogether; currency controls are not going to help us this time.

No doubt our financial sector is in a better position than a decade ago but to say that Malaysia is well-positioned for the coming economic challenge is stretching it a bit too far.

As to the question of liberalising affirmative-action programmes, the finance minister said: ‘To boost local and foreign investor interest in the stock market, I announce the liberalisation of the 30% bumiputera (indigenous Malaysian) shareholding requirements for companies seeking listing on the stock exchange'.

Incredibly in the same month, the government defended the need for this quota.

As for our willingness to face challenges head on, open discussion, working together to develop solutions, we are no where near to what Najib stated when the ruling government uses draconian laws to silence legitimate political dissent, makes many subjects that affect the nation taboo for discussion, and sabotages (economic or otherwise) the opposition-ruled states.

I am truly embarrassed as a Malaysian citizen that the highest office-bearer in my country could not even answer a simple critique by the AsianWall Street Journal Asia in a cogent manner.