Mega project, mega money, mega corruption

Regardless of whatever position we are in any measured Corruption Index, we Malaysian know better the level of corruption in this country. It happen in all levels and most of the time we are seeing things got probed on the lower level at which if we consider index and statistic, it merely involves fraction of percentage of the total corrupted money that goes around.

How does the big shark got away from this stats? The answer is simple; simply by declare it in the open. Put it in the economy plan or declare certain company awarded with the big project and ironically, we are seeing the same link of personalities to most of the awarded bodies.
The major differences but equally similar traits between this regime and before is the cost of the project. This new regime we are seeing and hearing numbers in billions and numerous amount of mega projects. Government increased public cost of livings by subsidy removal claims and at the sake of government revenues. At the same time, government also increase the budget that already in billions by another couple of billions.

This scenario is actually stunts me. It stunts me because at the same time we know for a fact that this regime was always talking about fighting corruption.
The key of why corruption exists is because of the presence abundance money. When the money ‘afloat’ is abundance and one want to have a piece of it, it happened. It is not hard to become a millionaire in Malaysia, you only need to get one project and you are set. The hard part is to get a hand in that project if you are not part of the ‘family’.

Due to amount of cash offered per project making the competition is actually on acquiring the project. There are no worries about the cost, revenue surpass the cost by miles. There are plenty of cash to go around.

The answer of reducing this corruption act is actually by reducing the profitability amount, relatively speaking, the pie. Smaller pie mean less people to share, small enough pie will only fill a few. But why can’t our government apply this simple step at which actually will save them millions if not billions and at the same time reducing the outflows and potentially enable them to have more meaningful development? Negatively speaking, they would like to have a piece of that pie or positively but equally negative is they don’t know. They don’t know how much a project should cost. They don’t know the cost of metal beams, bricks, concrete, workforce, etc.
To move on the right direction, our government institution needs to start establishing a cost study group. This group should consist of professionals (local please) with knowledge of the commodities, process, profit-loss calculation, nationalistic and honest. This group should look in depth of what it takes to build anything and be able to simulate what is the actual cost of delivering such project. Then the tender shall be out accordance to simulation with adequate profit in mind. The tender process need to be done professionally with all cost and profit declared up front.

Only by this we would be able to create a competitive environment. Distribution of wealth will become more meaningful, jobs for local will be created, monopolize and cronyism issue will be reduced (cronies is more interested on easy money, not the money that they have to really work for).

Perhaps the local job creation need a bit more explaining. On my knowledge and experience seeing, analyzing and scrutinizing all kind of cost data, I often encounter similar pattern of cost declaration. Workforce declared as locals and cheap foreign workers hired instead. Hiring cheap foreign workers is merely an act on profit optimization. It is the option that our government should drive to reduce. Our locals are all talented and much needed of income. We work more hours per day for most of other developed country with the lousiest pays in return. Should we be paid fairly, we don’t really need cheap foreigners to fill in the job spot. It does require a bit of enforcement body to make sure that we are fairly treated. More locals and less foreigners on job meaning less money outflow and more domestic purchase power and activities. Most of us is not like the rich in Malaysia that do the shopping overseas and keep their money in offshore account. We shop here, keep the money circulated here are the pillars of the economic growth in Malaysia and frankly need a good level of attention from the government.

Back to the principal of pies, I do believe that we are overspent on our entire projects. The cost and profit elements of this project need to be scrutinized. It is good to have numerous amount of mega project if we know how to balance the cashflow, knows the values for money, not wasting public fund and properly executed in healthy and meaningful manners. All this development is meant for the public and public benefits need to be ensured at all time. It definitely not supposes to be on the interest of certain individuals, shareholders and corporate bodies that are repeatedly gain the most benefit of any development project there.