In a recent email I wrote to Datuk Seri Idris Jala (no reply yet), the CEO of PEMANDU (of ETP & GTP fame), I highlighted the following:
... the unsustainable global monetary system, a major change (read: collapse) of which will derail ... the ETP & GTP. I am sure you are very well acquainted [with] the following:Pending his reply, I am therefore coining (ahem!) the programme to introduce real money to the people as the Monetary Transformation Programme (MTP)*, which will be the primary thrust of the agenda I am planning, as a value proposition in my plans to lead the UMNO Youth as a gateway to reach the national leadership (i.e. the Prime Minister, who is also the President of UMNO) to fast-track this idea into reality.
- a failing US dollar and US economy
- a crumbling Euro in the Eurozone
- Malaysia's high dependence on the US dollar and Euro in our international reserves
- a temporal improvement in the local economy attributable to 'hot money' FDI inflows as a result of unbridled quantitative easings elsewhere
It is therefore quite an inevitable fact that Malaysia will most definitely suffer the consequences of another global meltdown (worse than the 2008 crisis), unless we introduce measures to reduce or mitigate the effects of such a scenario to our economy - primarily on the monetary aspect. You may have heard too, that larger/smarter nations such as China are mulling options to manage any possible impending monetary catastrophy. I'm just wondering what, and if, we are doing anything 'officially' about this.
- which subsequently gave rise to fragile economic bubbles formed locally such as the property markets, etc.
*Obviously a play on the Economic Transformation Programme (ETP) and the Government Transformation Programme (GTP) monicker - let's go with the flow, shall we? ;)
So what is the MTP? (Something not found in any of the NKEAs, NKRAs, SRIs, EPPs, and other numerous acronyms bewildering most Malaysians...)
The Monetary Transformation Programme (MTP)
The objective of the Monetary Transformation Programme (MTP) can be summarised as follows: "To introduce real money to the people of Malaysia as an alternative to the established official currency". The main purposes of the MTP are:
- Moving our dependence away from a monetary system entrenched in riba (fiat money) towards one that can conceptually be free from riba (real money: be it in the form of gold or silver, denominated in Dinar dirham or otherwise, etc.).
- To put into place an altervative monetary system that will offer people protection from the negative (to put it mildly) effects of the flawed & failing monetary system currently in use - such as inflation, hyper-inflation and evetual collapse of fiat money.
- Establish a platform for a large & liquid base for real money - the implementation of the Golden Provident Trust (GPT). [Target start date: 2015]
- Introduce policies for transactional possibilities of real money that will begin making its way to the public - e.g. aligning GLCs such as PETRONAS, utility companies and housing boards to accept payment in real money. This is in anticipation of the beginning of GPT withdrawals in real money if we allow a 1 year grace-period from operational commencement of the GPT [Target date: from 2016 onwards]
- Meanwhile, the trickle-down effects of Step 2 will witness bigger private sector participation in usage of real money. [Target period: from 2017 onwards]
- With critical mass reached following the above steps, the government can facilitate implementation of advanced functionality for real money (see points outlined here) to rival current financial services offered for fiat money (i.e. the banking system) - e.g. widespread wadiah (repositories) setups, online access to real money storage & transfers, electronic-based payment systems, etc. [Target date: as early as 2018]
If the above schedule is followed, by 2020, insha-Allah, we will have a fully functioning real money eco-system that will complement the fiat money system in place (or what remains of it, if the impending global collapse of fiat money happens in the meantime; and it will happen - not if, but when). It seems like a tight deadline, but we better be prepared sooner than later!