10 easy ways for gov’t to free up funds for development
I have these simple ideas that will free up our limited national revenue so that we can free up more monies for development, education and healthcare.
1. Abolish national service, this will free up what was then said to be in the region of RM500 million, it is probably more now.
2. Cut the number of ministers/deputy ministers and parliamentary secretaries by one-third and slash their operating budget.
3. Abolish the Federal Territories Ministry; if one reviews the ministry’s programme in the last year, most of it was replicating Kuala Lumpur City Halls’ (DBKL) functions, duties and responsibilities. For example, why on earth do you need the FT Ministry to even get involved in the setting of parking rates in KL? That’s DBKL’s job.
It’s not like services to city dwellers have improved tremendously since the inception of the FT Ministry. This can be done in tandem with reviewing the existing ministries and maybe merging some.
4. In tandem with the above, all the duplicate agencies must be reviewed and merged. For example, the Land Transport Commission (Spad) must be placed under the Transport Ministry and all the agencies presently under the PM’s Department must be reviewed and returned to the appropriate ministries.
No other countries has both traffic police and Road Transport Department (JPJ) enforcement officers summoning motorists. JPJ should just concentrate on regulation and supervision. Enforcement should be done only by the police.
5. This is a radical idea and bound to raise many eyebrows, especially from the army of consultants and advisers. I suggest that all 100 percent-owned federal and state government bodies, enterprises and companies be exempted from all form of taxation.
My reason for this is that many of these companies are spending humongous amounts on tax advisory fees and what not, when eventually all these tax are going to the same destination, ie government coffers. As it is many of these companies receives a lot of grants and generate revenues and then pay taxes.
It does not make an iota of difference. Instead all these companies will just pay dividends to the government, just one mode of payment. Whatever saved on taxes can be paid as dividends.
6. Immediate shutdown of each and every government company that is set up to earn revenue but is not and just surviving on government grants and soft loans. Of course for companies of national importance, this does not apply, but even then this must be rigorously examined and decided.
Not just because the CEO of that company is very vocal in keeping it open when they have not made any profits in the last 10 years. For example, we can’t close MAS as this is a carrier of national importance.
Every Malaysian to declare assets
7. Each and every Malaysian or permanent resident is asked to declare their total assets and liabilities. This is then matched with Inland Revenue Board records and all discrepancies investigated and punished in terms of penalties and additional taxes if fraud or deliberate under declaration is found.
This investigation should be extended to cover owners of all luxury cars and big houses. If we have declared our income year on year accurately, there is nothing to fear from anyone.
8. The government to pass a law in Parliament to legalise the cancellation of additional payments to toll operators. These operators will cry to kingdom come and say that the bond holders will be upset and the market will react. Let it all react. They are all making adequate returns on the investment and this cancellation will save millions of dollars in compensation that does not need to be paid.
9. All new joiners to civil services should be on Employees Provident Fund (EPF) basis and not pensionable, so that eventually there is only one retirement system in Malaysia. This scheme for civil servants can be managed by Retirement Fund Incorporated (KWAP) which has indicated its desire to do so. This will slowly reduce the burgeoning pension payments.
10. Make it a government policy that all civil servants, ministers and government companies’ employees and must spend at least 80 percent of their work time at their place of work or within Malaysia. This cuts down on unnecessary travel and related costs. Productivity will improve, too. A lot of meetings can be done online; there is no need for overseas travel to discuss terms and whatnot.


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