The government bailing out ailing companies have become quite a mainstay in Malaysia these days.
Former prime minister Tun Dr Mahathir Mohamad has yet again hit out at Datuk Seri Najib Tun Razak and this time he said that the implementation of GST (Goods and Services Tax) was an act of the government to get people who are not in the income tax bracket to bail out the government over its own inability to reduce costs.
Dr Mahathir, who has been criticizing Najib in recent weeks including asking him to resign said that the funds raised through GST was done at the people’s expense and in becoming poorer, it has helped to enrich the government.
The word ‘bail out’ can be quite sensitive if put in this context but a common Malaysian will surely agree with Dr M with this one. Perhaps Datuk Ahmad Maslan would beg to differ.
On another bail out note, it seems that the impending termination of some 6,000 Malaysian Airlines staff after some restructuring would continue to haunt Najib’s administration. According to Christoph Mueller, the CEO of the national carrier, overtime claims, over-priced contracts and salaries as well as monthly bicycle allowance were among those that contributed to the financial drain of the airline.
So whose fault is it?
It must be noted that Malaysia Airlines has been performing poorly until Datuk Seri Idris Jala was brought in as CEO where he turned the airline around including back to profitable ways before he was asked to join the Prime Minister’s administration as chief of Pemandu. After that, it went downhill from there.
Now, a bailout is required.
Why isn’t that surprising?