KUALA LUMPUR: Budget 2023 is revised upward to RM386.1 billion, making it the largest allocation in Malaysia’s history, as the government continues to provide support to steer the economy, according to the Ministry of Finance (MoF).
The budget allocation is an upward revision from the RM372.3 billion budget tabled by the previous government in October 2022, which could not be passed before Parliament was dissolved.
In its Updates on Economic & Fiscal Outlook and Revenue Estimates 2023 report released today, the ministry said of the amount, 74.8 per cent will be utilised for operating expenditure while the remaining 25.2 per cent is for development expenditure.
A substantial allocation of 23.5 per cent will be provided for emoluments, subsidies and social assistance (15.2 per cent), economic (14.3 per cent), debt service charges (11.9 per cent), supplies and services (8.3 per cent), retirement charges (8.0 per cent), social (6.9 per cent), security (3.0 per cent), grants and transfers to state governments (2.1 per cent), general administration (1.0 per cent) and others (5.8 per cent).
MoF said funding for Budget 2023 will be sourced from income tax totalling 39.9 per cent of the total allocation, borrowings and use of government’s assets (24.5 per cent), non-tax revenue (19 per cent), indirect tax (14 per cent) and other direct tax (2.6 per cent).
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said Budget 2023 will focus on addressing the high cost of living, further strengthening the social safety net and enhancing the micro, small and medium enterprises (MSMEs) eco-system.
He said the government will also examine ways and means to reduce market disruptions as well as streamline business processes through the adoption of high technology and digitalisation.
"The government is committed to protecting the livelihood of the rakyat, upholding integrity, enhancing a caring and compassionate society, as well as improving the effectiveness of public and private sector delivery systems.
"These commitments can be achieved through a methodical approach focused on the aspect of thought, spirituality and infrastructure, which is centred on the framework of Malaysia Madani that focuses on shaping the future of the nation and realising its full potential,” he said.
Malaysia Madani framework is supported by six core values -- sustainability, prosperity, innovation, respect, trust, and lastly, care and compassion.
After Anwar was sworn in, the Dewan Rakyat had, on Dec 20, 2022, passed a RM163.7 billion temporary operating budget to allow the government to spend a portion of the total estimated expenses during the months prior to the retabling and passing of the Supply Bill for 2023.
The amount includes RM107.7 billion, which is from the Consolidated Fund, to pay for emoluments and aid for the first six months of 2023, and RM55.96 billion from the Development Fund to fund the ongoing development projects.
Moderate 2023 GDP Growth
Anwar said Malaysia’s gross domestic product (GDP) is poised to record a growth of approximately 4.5 per cent in 2023, backed by the nation’s sound macroeconomic fundamentals, robust domestic demand coupled with the effective implementation of the 12th Malaysia Plan (12MP).
With the transition to the endemic phase and the reopening of international borders, Malaysia has seen an increase in tourist arrivals as well as trade and business activities, contributing towards a steady recovery, especially in the services sector, he said.
"2023 is expected to be a challenging year. The government will continue to be vigilant of economic headwinds as well as any potential geopolitical conflict in order to devise the appropriate strategies and actions,” the Prime Minister said.
The report indicated that the services sector will continue to steer growth in 2023, expanding by 5.3 per cent on the back of better domestic demand buoyed by wholesale and retail trade, transportation and storage, information and communication, food and beverages and accommodation, and finance and insurance subsectors.
Anwar also said the government remains steadfast in balancing the need to safeguard the well-being of the rakyat and the nation while ensuring a sound and sustainable fiscal position.
This is crucial in maintaining the high standing of the country's sovereign ratings and to ensure the country’s premier position as an investor- and business-friendly country, especially in creating and attracting high value-added investments to achieve quality and inclusive growth, he said.
MoF said the acceleration of infrastructure projects with high multiplier effects, robust growth in private investment and continuous external demand particularly among major trading partners will further support the economy.
It also said the contribution of the tourism-related sector is expected to improve following an increase in tourist arrivals.
"Looking ahead, efforts will be intensified to position Malaysia as a major investment destination. Various measures will be implemented to uplift and enhance the economic potential for Malaysia to become more competitive, sustainable and inclusive,” it said.
It added that the government will continue to provide counter-cyclical policy support as well as expedite structural reforms to strengthen the country's growth prospects and resilience.
As for trade, the total trade is expected to expand further to RM2.887 trillion in 2023, with an estimated surplus of RM264.33 billion.
Strict Fiscal Discipline
Anwar said the government will prioritise strengthening the governance ecosystem at all levels to increase public trust in government institutions.
This initiative will focus on transparency, integrity and efficiency, particularly in government procurement, good governance, and the developmental role of government-linked companies (GLCs) and parliamentary institutions, he said.
He also said various initiatives have been identified to address issues related to public finances, including exploring new sources of sustainable revenue and minimising leakages.
"In achieving these initiatives, the government will prioritise on public expenditure review while ensuring debt sustainability and enhancing public spending efficiency in the long run.
"These measures will improve the nation's fiscal flexibility, allowing the government to implement counter-cyclical measures and maintain our economic resilience,” he said.
According to MoF, the fiscal deficit is expected to consolidate further to 5.0 per cent of GDP, to -RM93.94 billion from -RM99.48 billion in 2022.
Stellar 2022 Performance
Despite the softened global growth and escalating inflationary pressure, the Malaysian economy has performed better-than-expected in 2022, spearheaded by strong domestic demand and higher export performance in the aftermath of the COVID-19 pandemic.
Anwar said the country’s economic growth outperformed regional and global trends, rebounding to the pre-crisis level of 8.7 per cent, thanks to the swift policy responses and strong economic fundamentals.
MoF said in the report that growth in 2022 was anchored by the services sector, which grew by 10.9 per cent and contributed 58.2 per cent share to the GDP, mainly supported by the wholesale and retail trade, transportation and storage, as well as real estate and business services sub-sectors.
It said the manufacturing sector grew by 8.1 per cent with 24.2 per cent contribution to the GDP, while agriculture (0.1 per cent/6.6 per cent), mining (3.4 per cent/6.4 per cent), and construction (5.0 per cent/3.5 per cent).
The growth was also attributed to robust external demand, especially among Malaysia’s major trading partners, which resulted in a 27.8 per cent increment to RM2.848 trillion total trade last year. Similarly, the trade surplus expanded by 0.6 per cent to RM255.1 billion. - Bernama
Restoring confidence
Largest one in M’sian history heralds overhaul of country’s finances
Prime Minister Datuk Seri Anwar Ibrahim has unveiled a Rm388bil Budget, the largest in Malaysian history, and one that is inclusive and holistic as well. His approach to dishing out goodies is novel, taking care of priority areas while also setting the country up for a financial overhaul.
Budget 2023 will be based on three thrusts, that is spurring the economy, reforming institutions to ensure investor confidence and ensuring social justice to balance inequality. Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim
PETALING JAYA: Budget 2023, unlike many earlier ones, is not one that is a continuation of promises laid out in larger umbrella plans like the Malaysia Plans.
Instead, it is a unique creation under Prime Minister Datuk Seri Anwar Ibrahim’s Malaysia Madani concept, which is a manifestation of the more inclusive approach promoted by the unity government.
The Rm388.1bil budget is the largest in Malaysian history, with Rm97bil being earmarked for development expenditure, also the highest allocation yet.
While the government has been drumming home a message about the mounting debts of the Federal Government, why did it propose such a huge spending Bill?
The answer lies in government taxes, which rose strongly last year to Rm294.4bil due to much stronger economic growth than forecast. With the economy clocking an 8.7% growth rate, tax collection will mirror the performance.
Still, there will be a relatively high deficit in the budget at 5% of GDP. This, however, will be less than an earlier estimate of 5.5%.
The plan is to bring it down to 3.2% by 2025. That debt reduction schedule is going in the right direction.
Higher tax revenues are only part of the cash-raising proposals. Asking the well-heeled populace to foot their fair share of tax revenue is a good step.
High-income earners are not going to make too much of a fuss about paying their fair share in raising government finances. It was also good that vape and e-liquids be subjected to tax.
It is a huge grey area that has flourished without government control. The best thing now is to tax such products as they are substitutes for cigarettes and basically perform the same function.
Then there is the tax on sale of shares in unlisted companies. This is basically a capital gains tax on unlisted companies that sell their business for a profit. This will also be an equitable approach.
It is not an inheritance tax, but just a case of the government taking a slice for enabling companies to sell their assets at a profit. Maybe it is a different approach from the prosperity tax (or windfall tax), but in an era of high indebtedness by countries and greater calls for progressive taxes, such a tax was inevitable.
The tax on luxury goods will have to be balanced against the need to maintain tourism receipts. Will this put off potential tourists given that Malaysia is one of the cheapest destinations for luxury goods? The devil will be in the details.
Budget 2023 also reflects a different approach to addressing the issues of the past.
The usual ministries received an allocation bump and for good reason, but with a twist. Healthcare got a raise but there is acknowledgement that fixing the bottlenecks will use “the whole of nation” approach with spare beds and doctors from university and army hospitals, along with private hospitals, being utilised.
The move to tackle the problem of the hardcore poor is to be applauded. The call to alleviate the scourge of poverty within a year is formidable, but for Malaysia, which is on the cusp of high-income nation status, having 130,000 people on the wrong side of the poverty line is a shame.
Fixing the amenities at schools fast is also an urgent need, thus the increased allocation for the Education Ministry.
Defence too got higher allocations, as these are the basic foundations of any country.
The caring side of the budget was shown when it looked to help micro, small and medium enterprise sectors. These small companies employ a lot of people, and for them to get a tax deduction will go some way towards helping to shore up their finances.
The overall tone of Budget 2023 was appropriate.
It showed care and compassion for a large cross section of Malaysians. It is surely the start of an overhaul of the country’s finances as we head towards a national revitalisation over the next few years
By the Star Malaysia25 Feb 2023By JAGDEV SINGH SIDHU jagdev@thestar.com.my
Highlights of Budget 2023/Belanjawan 2023
1. Bankrupts with debts of less than RM50,000 who fulfil certain requirements will be released from bankruptcy on March 1. This is expected to benefit 130,000 people. 2. The government will amend the Insolvency Act 1967 to release bankrupts automatically. 3. Bank Negara will allow consumers to freeze their accounts should they detect any suspicious activities. 4. RM10 million to support the National Scam Response Centre. 5. A special task force to reform government agencies, known as STAR, will be set up. It will be led by the chief secretary to the government. 6. Malaysian Road Records Information System (Marris) allocations increased to RM5.2 billion. 7. RM50 million to install lampposts in accident-prone areas. 8. Government will use district engineers to speed up the repairing of federal roads. 9. RM2.7 billion to repair and upgrade federal roads. 10. RM1.2 billion to repair 400 dilapidated clinics and 380 dilapidated schools. 11. The government plans to table amendments to the Whistleblowers Act to better protect whistleblowers. 12. The government plans to table the Government Procurement Act. 13. Government procurement must be transparent. RM22 billion worth of contracts linked to flood mitigation projects and the Jana Wibawa project were awarded via direct negotiation. 14. Private sector to establish a “Madani wakaf” involving assets worth more than RM1 billion. 15. The government will increase the availability of Islamic financing. 16. The government will also support the plans for the private sector to develop a port in Pulau Carey. 17. The government will support the development of the Sanglang port in Perlis. 18. Putrajaya to expand Subang and Penang airports to attract investments. This is more economical than the proposed construction of a RM7 billion airport in Kulim, says the prime minister. 19. The Tun Razak Exchange will become the country’s international financial hub. 20. Bank Pembangunan Malaysia Berhad to provide RM6 billion in strategic funding to encourage automation. 21. Tax incentives for aerospace industry will be extended to Dec 31, 2025. 22. Tax incentives for manufacturers to move operations to Malaysia will be extended to 2024. 23. The government will introduce a New Industry Master Plan 2030. This will include the restructuring of investment incentives. 24. The government will give incentives to local councils that make it easier for businesses to be set up. 25. Government proposes extending the Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE) incentives until Dec 31, 2025. 26. Bank Negara to provide RM2 billion in loans to support green technology startups and help SMEs embrace low-carbon practices. 27. RM50 million to increase the number of wildlife rangers to 1,500 people. 28. RM38 million allocated to protect endangered wildlife including tigers and elephants. 29. The government will increase allocations given to states to preserve forests from RM70 million a year to RM150 million a year. 30. RM50 million for the armed forces, fire and rescue department, and Rela to prepare for natural disasters. 31. RM150 million for Nadma to prepare for natural disasters. 32. Six flood mitigation projects will be re-tendered. 33. Anwar gave the example of flood mitigation projects. He said the government could have saved RM2 billion for the projects awarded by the previous government. 34. High impact projects must be awarded via tenders to ensure the government enjoys the best value and savings. 35. Bank Negara to provide nearly RM10 billion in loans for SMEs. 36. Government to waive driving test fees for taxi, bus, e-hailing and B2 motorcycle licenses. 37. Syarikat Jaminan Pembiayaan Perniagaan will provide RM20 billion in loans to SMEs in high value sectors. 38. RM1.7 billion in loan facilities under Bank Negara, BSN and TEKUN. 39. Government agencies to provide RM40 billion in loan facilities for MSMEs. 40. RM176 million to upgrade business premises and facilities under Mara, DBKL, PUNB and UDA. 41. RM50 million to build and upgrade 3,000 stalls and kiosks nationwide 42. Income tax for micro SMEs reduced from 17% to 15% for the first RM150,000. 43. The government will incentivise self declaration for income tax arrears beginning June 1. 44. Half of revenue from excise duties collected under the Generational Endgame (GEG) law will be channelled to the health ministry. 45. Putrajaya to introduce excise duties on vape and e-cigarette liquids containing nicotine. 46. The government will study the possibility of introducing a capital gains tax from 2024. 47. The government will introduce wealth tax. Luxury watches and goods will be taxed. 48. The government will maintain electricity subsidies for all domestic users and SMEs. 49. Lower income Amanah Saham Bumiputera (ASB) contributors will be given more dividends. 50. The government will table a Fiscal Responsibility Act in Parliament this year to ensure better management of the economy in the future. 51. Government aims to reduce fiscal deficit to 5% this year, compared to 5.6% in 2022. 52. Government aims to collect RM291.5 billion in revenue, a decrease compared to RM294.4 billion in 2022.
PETALING JAYA: The Malaysian economy is projected to grow by 4.5% in 2023, even as the World Bank warned about the global economy being “perilously close” to falling into recession this year.
In the first section of the 2023 Economic Report, the Finance Ministry said all economic sectors are expected to remain in the positive growth trajectory in 2023, driven by the services and manufacturing sectors.
Other sectors, namely agriculture, mining and construction - which remained below pre-pandemic levels as of 2022 - are also expected to grow further in line with the improvement in economic activities.
“However, downside risks such as prolonged geopolitical conflict, climate-related disasters and persistently high inflation are expected to further hamper the global economic growth, hence, affecting Malaysia's performance.
Overall, the nation’s gross domestic product (GDP) is forecast to grow approximately 4.5% in 2023,” the ministry said.
Earlier this month, Bank Negara said the economy could grow by 4% to 5% this year. In 2022, the GDP expanded by 8.7% - the strongest growth since 2000.
The growth in 2023 would be mainly supported by steady domestic demand primarily private expenditure as well as initiatives under Budget 2023 and development expenditure under the 12th Malaysia Plan 2021-2025.
“However, a slowdown in external demand is expected to moderate exports growth, particularly in the electrical and electronic products and major commodities,” the Finance Ministry said.
The ministry projects the local services sector’s GDP to expand by 5.3% in 2023, down from a growth of 10.9% last year.
Manufacturing growth was forecast at 3.9% this year, as compared to 8.1% in 2022.
It is noteworthy that last year’s strong growth rate was largely attributed to the low-base effect as the economy was still impacted by Covid-19-related restrictions in 2021.
The mining sector is also forecast to record a slower growth next year by 1.2%, as compared to 3.4% in 2022.
However, the agriculture and construction sectors are projected to witness stronger growth rates, at 1.1% and 6.1% respectively.
In 2022, the agriculture sector’s GDP grew by a mere 0.1% and the construction sector expanded by 5%.
Commenting on the global growth, the Finance Ministry said the world economy is expected to further soften in 2023 at 2.9%.
The global economy would be weighed down by persistent pressures such as inflation, tightening global financial conditions and economic deceleration among major economies.
Core concepts and principles of the Global Security Initiative Concept Paper
Graphic: Deng Zijun/GT
China released "The Global Security Initiative Concept Paper" on Tue, elaborating ideas and principles, clarifying cooperation mechanisms and underscoring China's responsibilities and firm determination to safeguard world peace.
China issued a Global Security Initiative Concept Paper on Tuesday, elaborating on innovative core concept and principles, firmly supporting a UN-led governance structure and the UN's role in preventing war and forming peace: Chinese Foreign Minister Qin Gang
China is ready to engage in bilateral and multilateral security cooperation with all countries, firmly upholding the consensus that "nuclear war cannot be won and must never fought" while rejecting an arms race and promoting the political settlement of hot spot issues: Qin
China will continue playing a constructive role in pushing forward dialogue and negotiation on the Ukraine crisis. We urge relevant countries to stop fanning the flames of war and provoking the claim that "today's Ukraine is tomorrow's Taiwan": Chinese Foreign Minister
BEIJING: China has issued a landmark document to explain in detail its proposed Global Security Initiative, a move diplomats and experts say will help the world better understand China’s approach to building world peace through coordinated efforts between countries.
“The Global Security Initiative Concept Paper” was released on Tuesday at a Lanting Forum event hosted by the Foreign Ministry in Beijing.
The initiative was proposed by President Xi Jinping in April last year. Currently, over 80 countries and regional organisations have endorsed or supported the initiative, Foreign Ministry spokesman Wang Wenbin said on Tuesday.
The paper elaborated on Beijing’s holistic thinking on the initiative’s background, core beliefs and principles and priorities for cooperation as well as platforms and mechanisms to serve such collaboration.
The paper called on nations to stay committed to the vision of “common, comprehensive, cooperative and sustainable security” and “take the legitimate security concerns of all countries seriously”.
Among detailed areas for greater coordinated work are preventing a nuclear war and “promoting political settlement of international and regional hotspot issues”.
China also vowed to hold high-level conferences on the initiative to strengthen policy communication and promote intergovernmental dialogue and cooperation.
Foreign Minister Qin Gang said while addressing the forum that “security should not be monopolised by certain countries”, as it is a legitimate right of all countries.
China has always been committed to promoting peace and dialogue, Qin said, adding that the paper demonstrates China’s sense of responsibility for safeguarding world peace and defending global security.He said outside attempts to suppress and coerce China have been stepped up, posing a serious threat to its sovereignty and security.
“China is a major country and its development will not be achieved without a secure international circumstance. Likewise, the world will not enjoy security without China’s security,” he said.
Siyabonga Cwele, South Africa’s ambassador to China, said what impressed him most in the paper was that China, as a big country, was still committed to not becoming hegemonic or bullying others.
“We hope all developed countries can follow that path of not using their economic or military strength to coerce others, but working with others for common prosperity for all,” he said. — China Daily/ANN
By ZHANG YUNBI |
chinadaily.com.cn |
Updated: 2023-02-21 23:42
Foreign Minister Qin Gang addresses the Lanting Forum on Tuesday in Beijing. [Photo by Wang Zhuangfei/ China Daily]
Professor Richard Wolff: Dangerous Motives Behind US Aggression Toward Russia and China
Professor
Richard Wolff joins Julianna Forlano to discuss the danger to world
peace posed by Biden's recent aggressive rhetoric toward Russia and
China. He also unveils the true economic reasons for the attacks.
Another must-watch interview.
Professor
Wolff is an American Economist, known for his work on economic
methodology and class analysis. He is Professor Emeritus of Economics at
the University of Massachusetts Amherst, and currently a Visiting
Professor in the Graduate Program in International Affairs of the New
School University in New York. Wolff has also taught economics at Yale
University, City University of New York, University of Utah, University
of Paris I (Sorbonne), and The Brecht Forum in New York City.
On the one-year anniversary of the Russia-Ukraine
military conflict, China restated its calls for political settlement of
the Ukraine crisis with more specific plans that accommodate the
concerns of both Russia and Ukraine, in a neutral and consistent manner.
The Knockout | Episode 18 (Clip) | iQIYI Philippines
The Knockout Photo: VCG
The Knockout Photo: VCG
No matter how some US media outlets use malicious labels to describe Chinese anti-corruption dramas, one thing is indisputable: The US, under the current corrupt political system and toxic political environment, will never be able to produce a similar drama that can resonate strongly with the public.
A February 18 article in Foreign Policy, entitled "China's Newest Action TV Show Is a Propaganda Hit," laid its eyes on the recent hit Chinese TV series The Knockout. It argues that "at base, The Knockout is a tribute to Chinese leader Xi Jinping's anti-corruption campaign," adding that the TV drama is "part of a broader campaign to popularize propaganda in Chinese film and TV."
The Knockout is among a number of Chinese dramas under the theme of anti-corruption that have received positive reviews and high ratings in China in recent years. The popularity of these series reflects the Chinese public's particular interest in the country's campaign against corruption.
Chinese officials often play a pioneering role in society. As China has a massive officialdom system, how these people behave is closely linked to the ethos of the whole country. It can even be said that, to a large extent, the fight against corruption in China determines the future of the Chinese system.
The Chinese anti-corruption hit dramas are a projection of the country's anti-corruption achievements under the leadership of the Communist Party of China (CPC) in the cultural field. It also demonstrates that China's anti-corruption efforts have been well-acknowledged by the Chinese people.
The success of China's anti-corruption campaign has purified the country's political system, making the society healthier and more vibrant. It has earned more prestige among the people for the Chinese government and the CPC, enhancing the cohesion of the society.
Yet, based on ideological judgments, some Western media have labeled China's anti-corruption dramas as "propaganda." They obviously view China's political environment through tinted glasses as usual and nitpick China's achievements. This only exposes their extreme strategic selfishness and dark mind.
If we take a look at the popular US series that focus on their politics, such as House of Cards, what we will see is the exchange of political interests and the struggle for power in the US. This mirrors the dirty, dark and degenerate side of the US game for power. However, unlike the celebration of anti-corruption achievements in Chinese dramas, these series give viewers only a strong sense of powerlessness.
Fan Peng, a research fellow at the Institute of Political Sciences of the Chinese Academy of Social Sciences, told the Global Times that the relationship between individual officials and the official system is like the one between trees and forests. The one who fights corruption is exactly the "owner" of the forest, the CPC. Aiming at the whole forest, it tries to eliminate all the rotten trees. Such a dynamic force is the core of China's anti-corruption effort.
But that's not the case in the US, a country plagued by systemic corruption. Their ideology leaves no space for self-correction or self-revolution, Fan noted. This makes it impossible for Washington and its politicians to handle corruption the way Beijing has been doing.
Showing no hope of change or improvement, series like House of Cards can only strengthen the US public's perception that their government and politicians are terrible in nature, continuing to lower their trust in Washington and US politics.
Just look at how US politicians reacted in several recent series in the US. In the dispute over a "wandering balloon" with China, some of these people displayed extreme hysteria and unreasonableness. In the Ohio train derailment, some were either indifferent to the health and safety of the people, while some started their playacting only after the incident had made headlines, acting as if they valued the public's interest. Which type of these politicians cannot be found in House of Cards? How can Americans believe in the US system in light of this?
Fan says that another major premise for China to produce anti-corruption dramas is that the literary and art circles in China create cultural products from a position of righteousness. The US can celebrate individuality and rights, but no one dares to challenge corruption from a social justice perspective.
"The US is so torn up that all of its narratives come from only parts of its society. There is always otherness in such a narrow perspective. Therefore, one should not expect the US to produce a drama like The Knockout," Fan noted.
Why was Muhyiddin Yassin so power-crazy that he willingly betrayed friends and allies in Pakatan Harapan, leading to the collapse of the democratically-elected government after j……
How The Ex-PM Solicited RM4.5 Billion Bribes In RM92.5 Billion Covid-19 Stimulus Scandal..
Why was Muhyiddin Yassin so power-crazy that he willingly betrayed friends and allies in Pakatan Harapan, leading to the collapse of the democratically-elected government after just 22 months? Why was he so obsessed with power that he didn’t mind being laughed as the first backdoor prime minister? Why was he so daringly ignored multiple royal decrees, just to cling to power during his 17-month regime?
Why was the former premier so afraid of sharing power with Pakatan Harapan leader Anwar Ibrahim despite a royal decree by the King to form a unity government following the 15th General Election that produced a hung Parliament? More importantly, why is Muhyiddin’s Perikatan Nasional still desperately and shamelessly wants to snatch power through backdoor again?
All the answer can be found after the Malaysian Anti-Corruption Commission (MACC) arrested a chief executive officer of a private company on Thursday (Jan 5) night. The 42-year-old man was detained over his role as “middleman” in brokering government projects related to Covid-19 stimulus packages worth RM92.5 billion (US$21 billion) in exchange for bribes.
The suspect – Adam Radlan Adam Muhammad – turns out to be Muhyiddin’s right-hand man. A former chief executive of Maju Assets Sdn Bhd, Adam is also Segambut divisional leader of Muhyiddin’s political party – Bersatu (Malaysian United Indigenous Party). The best part is Adam is the cousin of Muhyiddin’s son-in-law, Muhamad Adlan Berhan, who in turn was involved in several scandals.
Adlan married to Muhyiddin’s daughter, Nabilah, who is a shareholder of Agathistwo Jia Sdn Bhd, a company involved in the scandalous RM1.2 billion NIIS (National Integrated Immigration System) concession. The NIIS was hatched by Muhyiddin (then-Home Minister under the Pakatan Harapan government) after cancelling its predecessor Sistem Kawalan Imigresen Nasional (SKIN).
Muhamad Adlan was also linked to 1BestariNet, a 15-year project worth RM4.47 billion introduced by then-Education Minister Muhyiddin in March 2011 to provide 4G broadband connectivity and virtual learning environment (VLE) to 10,000 government schools nationwide. However, the “failed project”, awarded to YTL Communications, has been plagued with slow internet access and problematic Frog VLE, which could easily be replaced with Google Classroom.
Adam Radlan’s involvement in Muhyiddin’s web of cronyism, nepotism and corruption was exposed after Muhyiddin-led Perikatan Nasional coalition failed to form a government post 15th General Election. And this is precisely why the former backdoor prime minister desperately wanted to return to power by hook or by crook – to “cover up” the skeleton in the closet.
So, how did Mr Mahiaddin (Muhyiddin) become billionaire during his 17-month short stint as 8th Prime Minister? From the beginning, he saw the golden opportunity to make tons of money from the Covid-19 pandemic. Unlike his former boss Najib Razak, he did not need a complicated project like 1MDB to steal and plunder the national coffers. He just needed to rule with absolute power under a State of Emergency.
It was Muhyiddin himself who bragged in April 2021 that the Perikatan Nasional backdoor government under his leadership has splashed more than RM600 billion (RM340 billion in economic stimulus packages and RM322.5 billion for the 2021 Budget to fight the Covid-19 pandemic). The scam was to boastfully create a narrative that massive of funds were used to help people and rescue the economy.
But when opposition Pakatan Harapan return to power after the Nov 2022 national election, all his lies and corruptions are exposed. Newly crowned PM Anwar revealed at a media conference on Dec 5 last year that the Finance Ministry had informed that there had been several breaches involving the Covid-19 funds. Panicked, Muhyiddin screamed that he did not steal any money.
Suddenly, Muhyiddin admits there was no such thing as RM600 billion, contradicting his previous claims. He said it was only RM530 billion. Even then, he played down the numbers. Spilling the beans, he said his administration had only spent RM83 billion in fiscal injections. This means Muhyiddin’s government did not actually help the people to the tune of RM530 billion as shamelessly trumpeted.
However, the Malaysian Anti-Corruption Commission (MACC) has confirmed it will now focus its investigation on the RM92.5 billion directly funded by the Muhyiddin regime after it was established that RM437.5 billion was not from the government. Still, the difference between MACC’s RM92.5 billion and Muhyiddin’s RM83 billion means about RM10 billion might have gone “missing”.
But there are already problems with the dubious spending of RM92.5 billion funds. Unlike Najib’s 1Malaysia Development Bhd (1MDB) scandal, Muhyiddin used traditional low-tech tactic to enrich himself and his families. Adam Radlan was sent out as his representative to connect contractors with high-ranking government officials before projects were distributed.
After the MACC raided 8 government agencies and 9 companies in December 2022 as part of its investigation into the suspected misappropriation of RM92.5 billion by the Perikatan Nasional government during its 33-month rule, it was found that at least 5 middlemen of several companies were involved in obtaining projects worth between RM50 million and RM500 million through direct negotiations.
Contractors who have been questioned by the anti-graft agency admitted that they agreed to pay a commission of 3% to 5% to secure projects from those middlemen. But the fact that only Adam was arrested so far suggests that the Muhyiddin’s proxy could be the key man on top of the food chain. It would be interesting to see if other middlemen would turn witness against the corrupt ex-PM.
The commission means more than RM4.5 billion had been paid to Adam and his band of middlemen, who clearly collected the bribes on behalf of Muhyiddin between 2020 and 2022. But get your popcorn because the fun has just begun. About 90% of the projects obtained via direct negotiations had not been executed as no acceptance letters (P.O. or Purchase Order) were issued. What does this mean?
This means about RM4 billion had already been paid by contractors to Muhyiddin and his gang of crooks, but all the 90% projects cannot take off. The dirty money had been deposited into the account of a political party, believed to be Bersatu. Hence, Muhyiddin is in deep shit as the furious contractors might turn witness, not to mention the money trail leading to his party.
Perikatan Nasional, comprising mainly Bersatu and PAS Islamist party, had bet the wrong horse. It thought at worst case scenario, the same Malay-centric political parties – UMNO, Bersatu and PAS – would form a government again after election, the same way they did in March 2020 (Muhyiddin became the 8th Prime Minister) and in August 2021 (Ismail Sabri elevated as the 9th Prime Minister).
The contractors similarly had bet the wrong horse that Perikatan Nasional would be part of the federal government. Now, not only they won’t get the projects, the money they had paid disguised as “political funding” to Muhyiddin to fund his lavish election campaign, including buying Malay votes at RM350 per pop, have gone up in smoke. Muhyiddin has already pocketed RM4 billion – in offshore accounts.
While 3%-5% commission was solicited for Muhyiddin, the middlemen and government officials demanded at least RM200,000 for themselves just to grant a meeting with every contractor – “without guarantee” that they will get projects linked to the RM92.5 billion stimulus programmes. This is how everyone benefited from the gravy train during the backdoor regime.
A good example that leakages occurred was the RM7 billion contracts approved under the RM15 billion flood mitigation project that were awarded through direct negotiations (in exchange for kickbacks) to dubious companies like Mangkubumi Sdn Bhd. Exactly how could Mangkubumi won the deal when it has been involved in a court case for illegal money laundering as much as RM139 million?
Adam Radlan, who has since disabled his Instagram, is also a council member of the Tan Sri Muhyiddin Charity Golf Foundation. Without Muhyiddin’s protection, he was dressed in the MACC’s iconic orange suit and will be charged under Section 16(a) of the MACC Act 2009, which provides imprisonment for up to 20 years and a fine of up to 5 times the amount of the bribe, or RM10,000, whichever is higher, upon conviction.
When Muhyiddin claimed that he was not afraid to be investigated, he lied. He was incredibly terrified, but as usual, trying to play poker with the new premier. Thinking PM Anwar was bluffing, he has even challenged the prime minister to prove it. The PM warned Muhyiddin not to challenge him as he has all the files and evidence. A month later, Muhyiddin son-in-law’s cousin has been nabbed.
The new unity government has not even started exposing how Muhyiddin obtained proceeds from gambling companies to help finance the 15th General Election campaign. Under Muhyiddin government, special lottery draws were increased from 8 to 22, despite the anti-gambling stance of Islamist party Parti Islam SeMalaysia (PAS), which is part of the ruling Perikatan Nasional coalition.
The special draws, designed to boost the government’s revenue, contributed RM80 million in extra revenue for the government in 1999 (the year it was first introduced during the premiership of Mahathir). Revenue reached as high as RM238 million in 2017, and averaged RM200 million a year in recent years – money that enabled Bersatu and PAS spent lavishly.
Another dumb person who kept shooting his own foot is former finance minister Tengku Zafrul Aziz. Trying to protect his former boss, he said there was nothing suspicious in the Perikatan Nasional-led government’s management of funds when it was in power. The clueless and incompetent Zafrul might have signed some documents that could come back to haunt him.
Beware links asking for banking details, it's likely a scam, say cops.
With online businesses on the rise, the scammers are getting more sophisticated. All it takes is for a user to click a link, and thousands could be stolen in the blink of an eye. Malaysians have already lost almost Rm40mil since October last year.
Clicking on one link cost one man RM10,000.
In December last year, Michael (not his real name) received a notification on his phone telling him to change his banking account password.
Thinking it was a good idea to keep his account secure, Michael clicked on the accompanying link and filled in his banking details, including a new password.
But the notification was fake and the link exposed Michael’s account to scammers.
“Nothing seemed out of the ordinary as the message looked authentic. Clicking the link redirected me to [what seemed to be] the bank’s site and I went on without suspecting anything amiss.
“Several hours later, I noticed the money was gone and knew I had been scammed,” he said, adding that he has since lodged a report with the bank.
While the Macau scam famously has crooks posing as government officers and telling victims that money needs to be urgently transferred to avoid legal action, this technique fools people with fake links and apps, say cybersecurity experts.
The tactic is to offer lucrative deals on high-demand products with one condition: the buyer has to conduct the transaction through an app or link sent by the scammer to the victim’s device; this then allows scammers to obtain personal banking details.
Known as a phishing attack, the technique goes back to the 1990s and the early days of the Internet.
In January, a 55-year-old vocational training officer in Pahang was cheated of RM23,514.70 by a scammer impersonating an NFC (near-field communication) card sales agent.
NFC cards allow wireless transactions and are becoming very popular, especially for toll payments.
Exploiting the surge in demand for such cards, one syndicate advertised on Facebook offering “Nfccapable enhanced cards” in a family package of four cards for just RM32, and the training officer fell for the “too good to be true” deal.
With cashless transactions increasing by the minute and becoming more prevalent, banks are issuing scam alerts on their websites, through newsletters and even text messages, advising customers to be extra cautious when conducting such business as they leave themselves open to phishing attempts.
Phishing is a process where scamsters trick users into divulging personal information such as passwords or credit card details to gain access to users’ online banking accounts.
The message from banks is crystal clear: never trust phone calls or messages requesting personal details, and never click email links to fill up forms.Fong Choong Fook, executive chairman of cybersecurity testing firm LGMS Bhd, said scammers now capitalise on “market demand” and advertise everything from maid cleaning services and food products to the latest tech gadget, among others.
“The type of product or service offered also changes depending on market demand. These products or services are usually sold in bulk as it allows the scammer to make more money,” he said.
Fong said the scammers ask the interested party to either install an app or click the link sent to make payments.
“This acts as a trojan horse to capture the consumer’s banking details, which is where the nightmare begins.
“The best way a person can avoid being scammed like this is to not download any apps or click any links sent directly from non-trusted sources,” he said.
He added that reclaiming money from scams is very difficult as it would usually be transferred very quickly through multiple accounts with scammers on standby to withdraw the sum at ATMS.
“Today, however, the government has set up a countermeasure through the National Scam Response Centre (NSRC) which serves as the last line of defence for victims.
“The task force behind the hotline can also take the necessary actions to help victims,” he said.
The NSRC’S emergency response number is 997.
Cybersecurity expert Assoc Prof Dr Selvakumar Manickam from Universiti Sains Malaysia said cashless transaction scams have increased as adoption of such payment methods increased amid the Covid-19 pandemic that began in 2020.
Scammers can easily create fraudulent websites that look identical to authentic banking sites to dupe unsuspecting victims.
“The interface will look authentic and request users to insert their credentials to log in, as done on authentic sites,” he said.
He advised consumers to never click on links sent to their devices regardless of whether they are sent from authentic sources.
“Always access the site either through your browser or official app to ensure your security,” he said.He also advised users to refrain from connecting to infrastructure such as public Wifi or computers as it could lead to hacking as well.
“If you’re constantly performing transactions through these banking sites, make it a habit to change your password every six months as a precautionary measure,” said Selvakumar.
A financial crime investigator at a public listed bank who spoke anonymously said scammers are extremely coordinated.
“Large amounts of even up to RM100,000 can disappear within minutes as the money is diverted through several intermediary accounts, making the trail difficult to trace.
“Scammers will also change your banking details such as passwords, transaction limits and linked-handphone numbers, leaving the victim unaware of what is happening.
“They also usually work in large groups with everyone on standby once a victim is identified,” he said.
He added that the obvious signs of such scams are that banks or officers would never call from mobile lines, adding that they would also never transfer the line to “law enforcement officers”.
“It’s best to just hang up on the call, and report it to the banks or NSRC if you encounter such situations,” he said.
The Internet can be a bad place, and not all websites are safe. Things may not always be what they seem, and it is, therefore, imperative that you take some basic precautions before you click on any hyperlink or URL. This beginner’s guide talks of the basic precautions one should take before clicking on web links, URLs or hyperlinks.
If you have noticed, when you are reading a web page, you will often see links as, for instance – TheWindowsClub or simply as www.thewindowsclub.com. Most of you may click on such links without a second thought. In either of these two cases, you will be taken to the genuine URL or website which is https://www.thewindowsclub.com.
But you need to be careful as the displayed text or the hyperlink can be misleading. To give you an example, if you were to click on TheWindowsClub.com now, you could be taken to another link – in this case our own sub-domain. Or you could click on a different displayed link text like say Windows 10 and still be taken to www.thewindowsclub.com. Then again, you may see news.thewindowsclub.com but be taken to www.thewindowsclub.com.
The point that I am trying to make is that don’t take things at face value.
So to confirm that a link is safe or not, what you need to do, is move your mouse pointer and hover it over the link.
Read more on https://www.thewindowsclub.com/precau.#OnlineSafety#InternetSafety#Windows10
Minimising the chances of attacks Cyber threats are evolving and escalating at an alarming rate for asset-intensive industries such as the energy sector.
ARE organisations only concerned with undertaking the right measures to mitigate cyber risk after they have been cyberattacked?
This may be the case in most situations but the more important question to ask is – what are the cybersecurity controls that should be considered by organisations?
The answer is straightforward – the controls that have the biggest impact on reducing the likelihood or the impact of a successful cyberattack.
Cyber risk is generally defined as the threat to the system, the system’s vulnerability and the resulting consequences.
Therefore, to successfully protect information technology (IT) and operational technology (OT) systems, companies must understand the tactics, techniques and procedures (TTPS), which threat actors use to achieve their desired objective.
Here are several examples of well documented cyberattacks on critical national infrastructure over the past two decades:
In 2010, arguably, the most sophisticated cyberattack was executed on an Iranian uranium enrichment facility that exposed the weakness of cybersecurity controls and vulnerability of OT environments.
The STUXNET worm was designed specifically to target these environments which allowed the threat actor to exploit and disrupt production operations causing downtime and business impact.
STUXNET was the eureka moment for the energy and manufacturing industries that OT environments can be breached and what impact it can have on their business, human lives, environment and economies.
Unfortunately, it was also an eureka moment for threat actors too. OT cyberattacks surged rapidly and suddenly the attack techniques from threat actors, in terms of creativity and smartness of achieving their malicious objectives, evolved since then.
In 2015, Ukraine was hit by another massive cyberattack that shut off power at 30 substations and left millions of people without electricity for up to six hours. SCADA equipment was rendered inoperable and power restoration had to be completed manually, which further delayed restoration efforts.
So how was this achieved – must have been very sophisticated? Actually, not.
Spear phishing was used to introduce the Blackenergy malware that exploited the macros in excel-based documents on computer systems at the plants. Meaning that the threat actors did nothing different than using known TTPS for cyberattacks on IT environments.
The same exploitation tools were used to find user credentials to escalate their privileges to move laterally in the network or to send malicious commands to disrupt plant operations.
The 2015 cyberattack seemed like an experiment as barely a year later the Ukraine Power Grid was attacked again and this time the capital city Kiev went dark, breakers tripped in a large number of substations.
However, this time the threat actors also jammed the utility’s call centres to prevent customers from reporting the outage by launching Telephone Denial of Service (TDOS) attack.
The approach was more sophisticated as the threat actors directly manipulated the SCADA systems using CRASHOVERRIDE – the first known malware specifically designed to target the power grids directly around the globe with the ability to wipe or delete files, disable processes like malware protection and even the software from OT vendors.
This was another eureka moment – national power grids are not safe from threat actors either.
One of the most concerning cyberattacks was in 2017 where the TRITON malware targeted the specific safety critical Programable Logic Controller’s (PLCS) in the Middle East. The function of these PLCS is to protect plants and people from disasters caused by mechanical failure.
In 2018, advanced persistent threat attacks on industrial environments continued to rise, and industrial espionage increased.
After 2019, there was a drastic increase in ransomware activities in OT environments including the manufacturing, water treatment and pipeline industries.
Recently, Cybersecurity and Infrastructure Security Agency launched the Cross-sector Cybersecurity Performance Goals as a prioritised subset of IT and OT cybersecurity practices, aimed at meaningfully reducing risks to critical national infrastructures and the community it supports.
These cybersecurity controls are not meant to be the only considerations for organisations. The purpose is to form the foundation to protect IT and OT infrastructures against cyberattacks as part of the defence-in-depth cybersecurity strategy.
These are some of the logical first steps to consider:
User account security
User accounts are generally one of the first gateways for threat actors to gain access to the network to establish a foothold and move laterally. On the surface, this may seem simple but maintaining user account security hygiene has been a long-standing challenge for many organisations.
Here are the suggested foundational controls that should be considered:
> enable the detection of unsuccessful user login attempts
> change all default passwords and implement multi-factor authentication
> update the minimum password strength > separate user and privilege accounts > enforce unique user credentials (not just email addresses as commonly used)
> revoke the credentials of departing employees.
Device security
Device security are measures taken to secure computing devices (hardware and software) from cyber threats but also to maintain service continuity.
Here are the suggested foundational controls that should be considered:
> approval process for new hardware and software deployment
> the disablement of macros by default > maintaining an up-to-date asset inventory
> prohibiting the connection of unauthorised devices
> documenting device configurations.
Data security
The purpose is to protect sensitive and confidential data from unauthorised access, theft, loss and destruction.
Here are the suggested foundational controls that should be considered:
> strong and agile encryption
> enable log collection
> secure storage of the said logs.
Governance and training
A strong governance structure is a key success factor for any cybersecurity strategy and operations to manage cyber risks effectively and to ensure adequate protection of data and systems.
Here are the suggested foundational controls that should be considered:
> appointment and empowerment of a single leader to be accountable for cybersecurity
> a single leader to be responsible for Ot-specific cybersecurity
> basic cybersecurity training for all employees and third parties
> OT specific cybersecurity training for OT managers and operators
> establish an effective relationship between IT and OT cybersecurity to improve the response effectiveness for OT cyber incidents.
Vulnerability management
To reduce the likelihood of threat actors exploiting known vulnerabilities in IT and OT systems, the following foundational controls should be considered:
> mitigate known vulnerabilities
> gather vulnerability intelligence by security researchers and enable the researchers to submit discovered weaknesses or vulnerabilities faster
> blacklisting of exploitable services on the Internet
> limit OT connections to public Internet > conduct third-party validation of control effectiveness.
Supply chain/third party
To ensure the integrity and reliability of supplier products and services the following foundational controls should be considered:
> establish supplier cybersecurity requirements
> immediate disclosure of known cybersecurity incidents and vulnerabilities to enable rapid response.
Detection, response and recovery
Here are the suggested foundational controls that should be considered:
> capability to detect relevant threats and TTPS
> a comprehensive response and recovery plan (including appropriate back-ups) in place helps organisations be prepared for the inevitable security incidents that will occur and ensures that they have the processes and resources in place to minimise the impact and recover effectively.
Network segmentation
Network segmentation reduces the likelihood of threat actors accessing the OT network after compromising the IT network and vice versa.
Here are the suggested foundational controls that should be considered:
> segment IT and OT networks
> segment safety critical systems form other systems
> segmentation of temporarily connected devices
> segmentation of wireless communications
> segmentation of devices connected via untrusted networks/internet.
Email security
By implementing effective email security measures, organisations can reduce the risks from common email-based threats and ensure the confidentiality and integrity of email communications.
Here are the suggested foundational controls that should be considered:
> Email encryption
> Email account authentication
> and email filtering.
In conclusion, cyber threats are evolving and escalating at an alarming rate for asset-intensive industries such as the energy sector.
Strengthening the cybersecurity foundations are imperative to build a defence-indepth model that would reduce the chances of cyberattacks and safeguard IT and OT environments.
By JACO BENADIE Jaco Benadie is partner, Ernst & Young Consulting Sdn Bhd. The views expressed here are the writer’s
own.
Chinese cybersecurity experts have exposed a hacker group, with its core members coming from Europe and North America, which has been launching sustained cyberattacks against China as its primary target, posing a serious threat to the country's cybersecurity and data
security, the Global Times learned from a Beijing-based cybersecurity lab on Sunday.
