WITH 72,634 members currently, Muda has a strong social media presence, has shown its powers at mobilising volunteers and is touted as a potential disruptor of the country’s old style politics led by geriatric leaders.

But just what will the youthful party do if it has a shot at power?

The Malaysian Insight talked to two of the party’s leaders on the current hot issue of rising prices, and what concrete proposals Muda had and would implement if it was in government.

Here’s what Muda said:

Cut the number of ministers and political appointments

Muda vice-president Teo Lee Ken said reducing the expenditure of cabinet members, as well as their numbers, and likewise with politically appointed heads of government-linked companies (GLC), would be among the things Muda would do as a step to deal with the rising cost of living.

This would be a way to cut down on leakages and mismanagement of government spending and by trimming down cabinet members.

“We would halt any increments to pay and allowances of all GLC heads, specifically those who are politically-appointed,” Teo told The Malaysian Insight.

Besides halting increments, Muda would also implement a 50% cut to the salaries and allowances of GLC heads who are politically appointed, and who are also politicians and Members of Parliament.

A similar proposal for ministers’ salary cuts was made by former minister Rafidah Aziz, to which Rural Development Minister Mahdzir Khalid responded that it would not help solve rising costs.

The current cabinet under Prime Minister Ismail Sabri Yaakob has 31 ministers and 38 deputy ministers. Critics and the opposition consider this bloated, and Teo agreed, saying that by streamlining the cabinet, governance can be more efficient and effective.

A minister receives up to RM25,000 in fixed allowances every month, and this does not include annual vacation allowances, daily expenses as well as travel claims, Teo added.

All in, the total cash remuneration that a minister takes home every month could amount up to RM50,000.

“We have a ratio of 1:1,000,000 ministers to the rakyat. If you compare it with other developed countries, we are operating at a very bloated capacity which results in inefficiencies,” Teo said.

Raise wages and continue subsidies

Teo said Muda would institutionalise social safety nets and services including schemes to increase the overall incomes of the B40 and M40 groups.

When asked how Muda would keep inflation low while increasing the minimum wage, Teo said higher wages should not necessarily cause inflation.

Instead, inflation can be caused by other factors, including the absence of a sustainable local agriculture and food industry, as well as government bureaucracy in providing services and assistance, and also the lack of the use of technology in agriculture and farming.

Wage increases can be derived from corporate profits, he added, noting that in Malaysia’s manufacturing sector, for example, from a total of RM100 earned from a product, only RM5 goes towards workers’ wages.

Raising wages need not cause prices of goods to increase drastically, Teo said, noting studies in the United States that “have shown that a 10% increase in the minimum wage causes only an increase of around 0.4% in the price of goods.

“A minimum wage, or living wage, on the other hand, ensures that workers can live a dignified life with access to basic goods and services.”

He also said Muda would continue subsidies for bottled cooking oil, eggs, and chicken to ensure that the public can afford daily essential items at reasonable prices.

Build supply

Meanwhile, Muda’s central executive committee member, Siti Rahayu Baharin said since the rising cost of living involves supply and demand, the government can control the price of goods if it has supply stocks.

She said disruptions to the supply chain and the lack of stocks has caused the food “crisis” of higher prices that the country is facing now.

“By having supply, the government can help to release the stock when the demand is high and maintain a balance between demand and supply.”

“It is also about time the government comes up with food security measures. And to boost the agriculture sector,” she said.  

In the long-term, tax the rich, ensure food security, create new jobs

In the long term, Muda said it would take up three measures to build Malaysia’s resilience to confront future challenges.

Firstly, a reform of the country’s fiscal policy, where wealth tax or higher taxes would be imposed on  the top 2% richest in society. This would go towards revenue for the government to spend on  public health, education, and social development.

Secondly, in reference to building food security, Muda said it would utilise idle land to increase domestic food productivity, and also diversify local sources for items to support local agriculture, such as animal feed.

This would diversify supply chains and break Malaysia’s reliance on imported animal feed, as well as food imports.

The food import bill was RM51.4 billion in 2019 compared with RM50.14 billion in 2018. In 2020, it rose to RM55.5 billion.

Thirdly, Muda would create jobs that combine high wages and productivity in the fields of technology, creative arts, and environment.

Teo said this will also help stem the brain drain to other countries by retaining talent with good-income jobs in fields that are important for the future. – July 3, 2022.