Movie replay?

I will be grateful for some education on the rationale for the government to offer guidelines on the levy or non-levy of service charge in hotels and restaurants.

While you are at it, there is a slightly less straightforward question on the issue of credit guarantees for SME loans.

Is it too wrong to ask the following questions:

(1) What is the record of past credit guarantees? Have they worked?
(2) If yes, then what is the contingent liability that the government is anticipating on doubling the guarantee on loans
(3) If they had not worked, what is the point in offering it? Just one more item to show?
(4) Is it the real issue that stands between SMEs and credit availability to them?
(5) If a higher credit guarantee is offered them, what is the quid pro quo expected of them?
(6) Is interference with deposit rates offered to a select band of customers (old people) necessary? Are there other ways of topping their interest income up?

What about private sector banks? Does the government diktat on interest rates to pensioners’ deposits apply to them too?

A friend helpfully pointed out that, in Japan, JETRO and affiliated organisations, send in experts to streamline SME businesses and only when it reaches a min level of performance is credit guaranteed.

Anti-corruption plank + populism + robust foreign policy + use of big data to go after the deemed corrupt with a tax machinery that is acknowledged to be arbitrary, rent-seeking and corrupt  – Have we seen this movie before or  are we seeing it now in a neighbouring big country?


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