Choose Isa because he did not cost you RM 21 billion

Tun Dr Mahathir has made his case against choosing Tan Sri Isa as the candidate for the Bagan Pinang by election. He claims that Tan Sri Isa is a tainted candidate and choosing him will show that UMNO is a corrupt party.


Actually, what is Tan Sri Isa's high crime? Giving money to politicos who have to spend money taking care of the juak. And why do they have to spend money, and a lot of it.

Imagine if the cost of the vote was tied to the price of a car, perhaps the latest Honda, something like a indexed linked fun.

TS Isa's problem is no longer of ethics, its of cost. We all know about A/Ps. We all know about the high tax placed on foreign imports. We all look enviously at our neighbours driving the latest cars on our roads, and picking up the speed bill, whilst we are still paying off that New Saga we bought 3 years ago.

Imagine if we did not have this Mahanomics brain child, and the laws of the free market was in place.

What loss is to the country?

The argument was made that with Proton, we would have the necessary technical expertise to undertake many great things, like send a man to the moon. The fact remains we had to pay the Russians RM 10 million to send our man into space. We have to fork out RM 300 million a year to launch the Formula 1 1Malaysia programme, and at the same time rely on our ex-colonial masters to run the technical show.

So what actually we have gained?

I can tell you how much we lost.
Imagine that if there was not this Mahanomics brain child, car prices was 25% lower. It is the most conservative estimate. Just for your info, on current prices, without this Mahanomics invention g for the price a Satria Neo, you could own a Honda Civic.

Take a look at the table below. It is the summary of Car loans outstanding on the bank books for the last 3 years.



Every year we pay RM 30 billion on our cars, of which RM 27 billion is to amortize the principal, and RM 3 billion is interest. At the same time, banks originate about RM 32 billion a year in new car loans. The total loan book for cars stands at around RM 111 billion as of July 2009, or 15% of the total loans outstanding in our banking system.

Now RM 32 billion a year is the price for all the new cars bought in that year, but what is its actual value? We know that the price is abnormally high due to Mahanomics, but assuming there was no Mahanomics, we could surely bring down the price by 25%. That means instead of having to spend RM 32 billion a year on new cars and RM 31 billion to pay off the cars we already "own", we would instead only need to spend RM 23 billion respectively.

Thats a huge savings. It actually translates to RM 21 billion for the last 2 1/2 years. This RM 21 billion would have remained in households, could be used to purchase local goods and services, support jobs and increase quality of life.

I have even ignored the multiplier effect in the economy!

Surprisingly some young bright economists seem to think highly of this man. Maybe we should ask him to write a paper on Mahanomics for his dissertation!

So perhaps, if it was not for Mahanomics, people will find it easier to survive. Maybe, is it fair to say, the original money politic instrument was the A/P itself?

And surely, Tan Sri Isa would not need to buy any support to win the VP position a couple of years back. Even if he did, he would not have had to pay so much.


comments

Isa will be able to buy himself into the state assembly again this time.
He was sacked by Mahathir when he was the highest voted vice president of UMNO.
He was MB of negri sembilan for 25 years. He has not yet spend his " earnings " of these years yet when compared to Toyo who has already spent his kopi duit in his RM24 million castle. This means he has all the money power to gobble up all the voters. No problems for him.

This Isa fellow will use all his ill gained wealth to bribe and buy as many votes as he can. UMNO knows he is a disgraced leader but he has all the money to buy himself victory!!!

So don't ever vote for him!!