Australia's Hung Election Results

Australia’s elections were held last Saturday (i.e. August 21), and the hung results meant that the country is in the same messy state as UK was in with her past election. I see parallels between Australia and UK. Australia’s Labor was firmly rebuked by the electorate, and Julia Gillard's (left) plea to stay in power has generated comparisons to UK’s Gordon Brown, whose governance would have been seen by many as illegitimate, and who eventually gave in.

Australia's first hung parliament since 1940 means neither Labor nor the Liberal/National coalition had the majority of 76 seats to form a government in their own right. Three returned independents – Tony Windsor, Rob Oakeshott and Bob Katter – therefore, will share the balance of power with the Greens Member of Parliament Adam Bandt.

What I like about the independents is their demand for a Treasury briefing on the cost of all Labor and Coalition policies over the next term as a pre-requisite for talks about forming a minority government. I like it because politicians should be made to account for the promises they make to the electorate to win votes. I don’t think we wish to have these politicians fishing for votes at the expense of potentially bankrupting the country with pledges that are politically convenient but fiscally unsound. Okay, you may say these leaders are unlikely to be so irresponsible – I say, don’t be so sure, more so when it involves politicians. Don’t you remember how easy Najib spends our money during the by-elections?

Thus far, the two dominant Australian parties have not said yes.

Sime Darby group chief operating officer Abdul Wahab Maskan (left) and acting president and group chief executive Mohd Bakke Salleh. Photo by Mohd Izwan Mohd Nazam

Further to my posting on May 14, 2010, Sime Darby Bhd has made RM777.3 million in additional provisions for foreseeable losses and impairments for its fourth quarter ended June 30 (4QFY10), bringing their total provisions to a staggering RM2.08 billion for the full financial year.

The latest quarter’s RM777.3 million provisions relate to three oil and gas (O&G) projects, namely Qatar Petroleum, Maersk Oil Qatar and Marine, and includes provisions and impairment of other assets. No provisions for the Bakun project were made for the quarter.

For the full year, the group remained in the black even though it saw a 68% decline in net profit to RM726.8 million in FY10, from RM2.28 billion in FY09. Revenue for the year grew 6% to RM32.95 billion from RM31 billion previously.