Consumer, Investor confidence down

By Joe Fernandez
KOTA KINABALU : We were earlier at CentrePoint Sabah after church.

One IT shopowner came running towards us. He opened a 2nd outlet at the complex in Jan. He opened an outlet in Megalong last year. It's still losing every month.

He complained that business at CPS, including his, was down 40 per cent in May compared with Jan. He won't make even RM 4, 000 this month to cover the rental at the 2nd CPS outlet. His workers here are down to two from three previously.

The number of workers at his first CPS outlet is down by two to three. For the first time, he's not sure the outlet can break even this month.


He plans to close down the Megalong outlet by the end of this year if there's no improvement in the sales.

He doesn't think the minimum wage from Jan next year will help improve sales.

It's not enough for the Government to declare a minimum wage. It should also adopt 1Country 1 Price as a policy.

CPS is a barometer of consumer confidence in KK and Sabah.

Obviously, the steep oil price increases of recent months has played havoc with the economy. Food and transportation are up and people are prioratising their budgets. This means less money for IT and other items which can wait.

It's a double-edged price situation.

When oil prices on the spot market move up, consumer prices of perishables and transportation costs move up immediately although the actual oil price component which is related is that of two years ago.

Conversely, when oil prices move south as now, consumer prices don't follow suit. This is especially true of food and transportation. So, other sectors of the consumer economy suffer.

This means nothing is being done about profiteering. The private sector itself should adopt better business practices as a culture. It will only be doing itself in if it kills consumer and investor confidence.

Another factor is that visitor arrivals are down because of cutbacks by Air Asia following its colloborative agreement with MAS. Khazanah has since ended the MAS colloboration with Air Asia but the latter airline is yet to resume operating at its former levels despite the advent of Air Asia Philippines and Air Asia Japan.

Visitor arrivals are down at a time when the number of hotel rooms and shopping complexes in Sabah are increasing dramatically.

The Gov't needs to cushion the oil shocks to the economy by building a strategic petroleum reserve and build more refineries. There should be at least one each in Sabah and Labuan and another in Sarawak.

It should start buying for the local reserve as the price moves up and start selling when the market is topped.

For example, if the bottom price was US$ 75 per barrel and the top price at $140 per barrel, that bought at the bottom price should be sold at the top price. As both extremes meet, the equilibrium will be met.

There will be a political fallout in the urban and suburban areas in Sabah if consumer and investor confidence does not pick up by the 13th GE.

This does not mean the people will vote for the Opposition who are simply a pale imitation of the BN judging from their hare-brained ideas. No party can come out with better bullshit than Umno's High Income Agenda. It will be the magical phrase to cover a multitude of sins like Mahathir's Malaysia Boleh.

All this simply means that either the voters will stay at home, spoil their votes or vote against the incumbent party.

If the Opposition wins any seats, it will be by default.

If consumer and investor confidence picks up as expected by the 13th GE, how will the Opposition in Sabah sell itself to the electorate by immitating the BN?

We no longer hear about the Borneo rights flogged by activists not so long ago. Perhaps they are convinced it's all spin and bullshit.

We no longer hear about reformasi flogged by Anwar Ibrahim.

The de facto PKR Chief has suddenly realised that "many people" don't want an end to corruption or AliBabaism -- erroneously thinking that's their ticket to instant wealth if they stand in Q -- they don't want to end the deviations and distortions in the implementation of Article 153, they are not convinced that Federalism and the Doctrine of Separation of Powers will be good for them and they think it's good for them to not to repay PTPTN loans, and they think it's good for them -- "to hell with others" -- to sapu bersih the civil, teaching and diplomatic service, the police, Armed Forces, the Judiciary, the GLCs and even cendol licences and above all they think it's good to use the Syariah Court to snatch bodies.

Mahathir has pledged to be racist as possible in the run-up to the 13th GE and Anwar has already be cowed by the threat.

Only Hindraf Makkal Sakthi, Dap and Pas, all in Peninsular Malaysia, are sticking to their guns on change and reform.

Bankruptcy will eventually bring the nation to its senses and bury the current political system and system of parties -- along with the spinmasters, bullshitters, traitors, proxies & stooges -- for good.

The purpose of all politics is to re-distribute power and resources.

That's not happening.

The purpose of politicisation of issues is to create new constitutional conventions and to pressure the government of the day to get its act together via administrative law or risk the people's wrath at the ballot box.

That's not happening because the politicisation of issues has come to a grinding halt on the grounds that "it's all spin and bullshit" and besides "it's important not to sour relations -- whatever that means -- with other political parties".

Non-politicisation is the stand being taken by people who not so long ago flogged Borneo Rights as the Gospel Truth. Suddenly, they have turned tail and are even willing to publicly embrace known sycophants.

Obviously, they belabour under the delusion that some nice things will happen to them some day with no effort on their part.