After Proton, will KTM be next?

After Khazanah sells its 43 per cent stake in Proton to DRB-Hicom (owned by Syed Mokhtar Al-Bukhary), will the government privatise KTM next?
The Edge (16 January) reported that MMC Corp (controlled by Al-Bukhary) had announced that it is proposing to take over KTM. Al-Bukhary again? KTMB has reportedly been asked to assist MMC in conducting due diligence on the rail service to decide whether MMC wants to take it private. The due diligence could could take six months and the entire privatisation exercise could take 18 months.
The railway workers union has naturally expressed concern. It maintains that it won’t be proper for KTMB to be privatised. “KTMB is for the rakyat and should remain as it is today, or returned to the government if necessary,” its president Abdul Razak Md Hassan was reported as saying. “If given to a private party, we can expect the fare of the commuter trains to increase.” According to him, KTM charges 70-80 sen per km for its commuter train compared to more than RM1.00 on the ERL, Putra, Star and Monorail (Business Times).
The Edge asks, “Was there even an invitation to others to put in a proposal to privatise the railway company?”
Why even consider privatising the rail services run by KTM – especially after the double tracking work, which will definitely speed up rail travel, increase the volume of passengers and result in economies of scale for KTM.
Just after the government has spent billions of public money on the double tracking and state-run KTMB is poised to reap the considerable benefits and improve its profitability, along comes a company expressing interest in taking over the railway. So predictable. (By the way, what is Pakatan’s stand on the move to privatise KTMB?)
There is absolutely no reason why KTM cannot be run efficiently and break even as a state-owned entity with the right management and adequate public investment in improving services. There’s actually no need to make a big profit for KTMB as the railway provides an essential public service. Look at how other country’s have improved their rail services without having to privatise. This public service is all the more crucial in the face of dwindling oil reserves for fossil fuel-powered motor vehicles and higher oil prices.
But sadly, our rail services have been neglected all these years, presumably because the BN government felt it had to prop up the ‘national car’ and minimise competition from other modes of transport (while highway concessionaires reap huge profits from tolls).
Regarding the takeover of Proton by DRB-Hicom, the Wall Street Journal reported:

The deal could further add to the influence of DRB-Hicom’s owner, Syed Mokhtar Al-Bukhary, who also bought Khazanah’s 32% stake in national postal company Pos Malaysia for 600 million ringgit when Mr. Najib’s government began its divestiture program. The Malaysian tycoon first rose to prominence in the 1980s and 1990 when the country was led by Mahathir Mohamad, and it was the former premier who first flagged to local media last year that Proton could soon be sold.

Bukhary controls a couple of the largest ports in Malaysia, Port of Tanjung Pelepas and Pasir Gudang port in Johor, as well as Senai Airport.
Syed Mokthar’s Tradewinds gained control of Bernas, which has a monopoly of rice distribution in the country. Tradewinds also controls Central Sugars Refinery Sdn Bhd and Kilang Gula Padang Terap Bhd.
In 2007, Gamuda and Bukhary’s MMC were awarded the northern portion of the rail double-tracking job for RM12.5bn.
In April 2010, DRB-Hicom reportedly received a letter of intent from the government to manufacture and deliver a dozen variants of the Malaysian AV-8 armoured wheeled vehicle.
The tycoon also has an interest in Malakoff Corp, the country’s largest independent power producer.
In December 2010, the Singapore Straits Times noted that Al-Bukhary had emerged as “the single biggest beneficiary of state contracts and concessions worth billions of ringgit, making him Malaysia’s most favoured corporate son and the government’s partner of choice”.

Govt to 'save' Shah Alam Hospital project

By Syed Jaymal Zahiid - Free Malaysia Today

KUALA LUMPUR: The controversial Shah Alam Hospital has been reopened for a new tender, Works Minister Shaziman Abu Mansor said today.

Shaziman said his ministry would be appointing a “white knight” contractor through a limited tender procurement method to finish the job.

"The advertisement for the tender was issued on Nov 26 and will close on Dec 17," he said at the Dewan Rakyat.

Shaziman was disputing allegations of cronyism made by Shah Alam PAS lawmaker Khalid Samad who was moving a censure motion against the minister.

The RM10 pay-cut motion was moved following the minister's inability to tackle alleged discrepancies in the various mega-construction projects, including the Shah Alam Hospital.

Ballooning costs

Khalid was questioning the whopping increase in cost of the Shah Alam Hospital project, which was initially estimated to cost taxpayers RM300 million but later ballooned to RM482.6 million.

It was scheduled for completion this month but has been extended to June, 2011. The delay arose amidst allegations of malpractices which Khalid claimed resulted from directly awarding the project to incapable Umno-linked crony companies.

The contract was awarded to a company called Sunshine Fleet Sdn Bhd. It was approved by Shaziman's predecessor under the Ninth Malaysia Plan.

Despite the attacks, Shaziman said that contracts awarded through direct negotiations only amounted to 5% of all government projects tendered out.

These contracts awarded take into consideration the high-profile nature of the projects. Issues like security and expertise are often the criteria used to justify the practice, said Shaziman.

He also shrugged off allegations of irregularities in the delay, saying the postponement was approved by the government.

"It was approved to ensure that the project will not be disrupted following the increase in construction material and fuel prices," explained Shaziman.

Khalid, who disagreed, said the point of contention was not the 5% but the amount of taxpayers' money involved in the projects.

The main idea behind any tender-awarding process was to attain the best quality at the lowest price, which the government has failed to practise in light of the constant increases in projects cost like the new national palace and the National Cancer Institute, Khalid added.

Motion rejected again

The cost of the new palace was initially estimated at RM394.8 million but soared to RM650 million. The National Cancer Institute's initial cost was RM340 million in 2007 but rose to RM700 million.

Khalid again accused the government of cronyism in awarding the projects to companies linked to Umno.

But Shaziman insisted that the contracts were awarded for valid reasons and that the valuation of the costs were done thoroughly by the Economic Planning Unit.

The debate between Khalid and Shaziman eventually turned into a chaotic verbal jostle between the two sides of the House.

Deputy Speaker Ronald Kiandee was forced to calm tempers down. The motion was subsequently rejected.

Khalid Ibrahim and the mega tower

By Anil Netto,

I can’t say I was surprised to read reports that the Selangor MB appeared less than unequivocal in expressing opposition to PNB’s proposed mega tower. 

His subsequent back-tracking on his initial apparent support for the project was reported in the Malaysian Insider here.

Apparently, the 240,000-strong Facebook opposition to the tower didn’tt seem to count for very much – nor Anwar’s and Khalid Samad’s vocal opposition to the tower. As if PKR didn’t have enough problems as it is!


In the end, Khalid posted the following note on his Facebook: “Selangor is ready to work with the Federal Territories in the development of Klang Valley, but it will not support mega-projects such as the Menara Warisan Merdeka.”

Khalid comes from a corporate background that perhaps thinks large property projects will provide a strong (short-term) multiplier effect on the economy. Such is the corporate mentality that thinks that any urban property development is beneficial development that would “unlock” any unrealised profits on land valuation and spur economic activity in the short to medium term – never mind the long-term congestion and projected occupancy rates. (I suppose it’s hard to find a politician who can think beyond five years i.e. the next election.)

Of interest is that Khalid was PNB CEO from 1979 to 1994. He was also CEO of Guthrie from 1995 to 2003. During his tenure, Khalid tried to diversify Guthrie’s plantation-based activity through the Guthrie Corridor Expressway property development project. Guthrie has since been merged into Sime Darby.

PNB has now set up wholly-owned firm PNB Merdeka Ventures Sdn Bhd to undertake the mega tower project, according to The Star. It is headed by Tengku Abdul Aziz Tengku Mahmud, who was reportedly from Guthrie Property Development Holdings Bhd and Sime Darby Property Bhd. As CEO of Guthrie Property, Tengku Abdul Aziz was also involved in developing the GCE. (See Star report from 2006 here.)

Maybe Pakatan will clean up obvious or outright corruption and wastage, but at the end of the day, we have to ask, how different will its overall model of economic development be from the BN’s? Are we still going to be driven by an unsustainable construction frenzy, which creates periods of boom and bust and brings along much misery in its wake?

Sky high risks in Malaysia

By Anil Netto

KUALA LUMPUR - Malaysian Prime Minister Najib Razak's recent announcement that a 100-storey tower will be built in the capital by a government investment fund comes as global liquidity is flooding the region and raises concerns the project could represent the front end of a coming new crisis.

Najib unveiled the plans for the tower, to be known as the Warisan Merdeka, or Independence Heritage, on October 15. Two weeks later, Asian Development Bank chief Huruhiko Kuroda warned of two risks facing developing Asian economies like Malaysia: that the recovery in developed economies could be elusive and speculative capital inflows into developing economies could prove volatile.

The United States Federal Reserve is expected to announce a second round of quantitative easing this week, which could

 

prompt the flow of even more speculative capital in search of higher yields into Asia’s developing economies.

Last month, the Federation of Malaysian Manufacturers, in a joint statement with its Thai counterpart, expressed concern that "unbridled speculation and inflows of hot money that impact on financial markets will work its way through the real economy to adversely affect output, trade and jobs".

Share prices on the local bourse have rallied to near-record levels. The benchmark FTSE Bursa Malaysia Composite Index, which closed at 1,505.66 last week, is expected to test soon its historic high of 1,524.69. Prices of commodities, including some of Malaysia’s top exports, have also surged, driven by cheap speculative money.

Property prices have rocketed this year in urban centers like Kuala Lumpur and Penang, prompting the central bank, Bank Negara, to state that it would clamp down on any speculation that could lead to a property bubble.

The proposed 100-storey tower, to be built by state-managed Permodalan Nasional Berhad (PNB) - the country's biggest fund manager - next to the Merdeka (Independence) Stadium and the Indoor National Stadium, will easily surpass in height the city's 88-storey Petronas Towers (at 451.9 meters, including spires) and is scheduled to become the second tallest in the world.

Flash back two decades, Malaysia had only just emerged from a recession in the mid-1980s when the government of prime minister Mahathir Mohamad proposed the Petronas Twin Towers. Work began in the early 1990s at a time when the country was enjoying an economic boom, driven by hot money pouring into the region. On their completion in 1998 they were the world's tallest buildings.
Even during the 1990s boom years, there were concerns about who would occupy all the office space created by the Petronas Towers. At that time, office occupancy rates in Kuala Lumpur were well above 90%, the average annual gross domestic product (GDP) growth was over 7%, and the country was regarded as something of a regional economic powerhouse.

Just as the Petronas Towers were completed, the 1997-98 Asian financial crisis struck. With additional space from the towers and other skyscrapers coming online, Kuala Lumpur’s office occupancy rate slumped to just over 80% and dropped even further into the 70% range in subsequent years. In the event, state-owned oil and gas giant Petronas moved its offices into one of the twin towers, while the other tower was gradually occupied by Petronas subsidiaries and other firms involved in the oil and gas sector.

The Petronas Towers' experience was echoed earlier this year with the opening of the world's tallest skyscraper, the Burj Khalifa, in the middle of a financial meltdown in the United Arab Emirates. A couple of years ago, when the Burj was being constructed in the midst of a property boom there, the business press in Malaysia had hailed UAE as a model for Malaysia to emulate.

No longer. Today, Malaysia bears some similarities with the 1990s when the Petronas Towers were mooted. Once again, Malaysia is emerging from a recession. Hot money is flowing back into the region with economic stagnation and more quantitative easing in store for capital-rich developed nations.

But there are major differences as well. This time Malaysia's economic growth has slowed to just over 5% in recent years. Unlike the confident boom years of the 1990s, Idris Jala, a cabinet minister tasked with outlining economic policy reforms, has warned that the country risks a Greece-style economic crisis by 2019 if it doesn't take immediate steps to restructure the economy.

And instead of hordes of foreign investors beating down the door to establish factories and offices, they are generally headed elsewhere in the region where labor costs are lower, such as China and Vietnam. Unlike the pre-1998 near full occupancy of Kuala Lumpur’s office space, the occupancy rate now has only just topped 80% - and this before the mega-tower is built.

Glutinous worries
Once again, there are market concerns of a possible future glut. Like Petronas, PNB is expected to move its offices into the mega-tower when it is completed, but that will leave the investment fund with the task of finding a profitable use for its existing PNB tower in Kuala Lumpur.

Other huge property projects in Kuala Lumpur are also planned. A government outfit, 1Malaysia Development Bhd (1MDB), is bringing in Abu Dhabi's Real Estate and Hospitality to jointly develop a 26 billion ringgit ($8.4 billion) financial district Kuala Lumpur designed to cover 36 hectares. 1MDB will also partner with the Qatar Investment Authority in another large property development project on an air force base in Sungai Besi, part of the federal territory of Kuala Lumpur.

This means an enormous amount of office space will become available at a time when Malaysia's medium-term economic prospects are not exactly bright - even though the property and stock markets may be bubbling now. Though the mega-tower is expected to cost 5 billion ringgit, critics worry that the actual cost could balloon beyond that, as mega-projects often do.

Malaysia aims to reduce its fiscal deficit from 7% of GDP in 2009 to 5.6% or lower this year. The federal government's debt to GDP ratio rose to 53.7% in 2009 - exceeding 50% for the first time in recent years - though most of it was domestic rather than foreign debt. External debt now stands at 34% of GDP. A rising source of financial concern is household debt levels, which hit 76% of GDP last year.

The government knows it can count on the nation's piggy bank - Petronas - to tide it over any immediate economic turbulence. But that insurance policy is faltering. For the year ended March 2010, the national petroleum corporation's profit after tax fell by 23.6% to US$13.1 billion. The fall was driven by an 18.8% drop in revenue to $62.5 billion due to lower global fuel prices. Return on capital employed by Petronas dropped to 24.9% from 36.8% over the same period.

The proposed mega-tower has come under strong public criticism, including on social networking site Facebook. At the time of writing, over 216,000 people have endorsed a "Malaysians Reject 100-storey Mega Tower" Facebook page - an extraordinary number considering it's been only two weeks since it was set up. (To put this in perspective, Najib himself has 456,000 Facebook page "likes" while opposition leader Anwar Ibrahim has just over 200,000 "likes" - but both built up over a much longer period.)

Najib has defended the proposed tower, denying that it would be an economic waste, and he has claimed the construction will benefit many business sectors. "There are many contract works which we can give out to spur economic activities. The area can also become a center of attraction and a business center." He said the project was proposed by PNB, which manages some 150 billion ringgit in funds, rather than the government itself.

PNB was set up in 1978 as a key instrument of the government's New Economic Policy, which aims to promote corporate equity ownership and investment opportunities among bumiputeras, a Malay term used for indigenous people of the Malay archipelago. Under PNB, substantial shares have been acquired in large local corporations from funds provided by the Bumiputera Investment Foundation. These shares, in turn, were transferred to trust funds and sold to the bumiputera public in smaller units.

"I did not ask PNB to undertake the project. It is something which the PNB management wants to see implemented," said Najib.

Critics, however, point out that while PNB is managed by a board of directors, its board of trustees is helmed by Prime Minister Najib and his deputy, Muhyiddin Yassin.

Many Malaysians thought they had seen the last of this fixation with the tallest and the biggest with the end of the Mahathir era - so the general reaction to Najib's announcement was one of flabbergasted disbelief. Opposition leaders have taken the mega-tower controversy to the hustings, especially with two by-elections in constituencies lying in the less-developed states of Kedah and Sabah coming up on November 4.

"Why do you need a 100-storey building to be undertaken by a bumiputera agency?" asked opposition leader Anwar before a dinner crowd in Penang. "This by itself proves beyond reasonable doubt that UMNO [the ruling United Malays National Organisation] leaders are completely oblivious - there's a clear disconnect between the thinking of the cronies and the ruling elite and the sentiment of the Malay masses."

Other parliamentarians have joined in the criticism. "If tall buildings will bring us out of this low-income or low-middle-income trap and make us a high-earning society (as the government hopes), then we should have achieved it because we have the twin towers, which were built years ago, but it didn't happen," said opposition parliamentarian Khalid Samad of the Islamic party PAS.

Anil Netto is a Penang-based writer.

Mega-tower: A sense of deja vu

By Anil Netto,

Najib’s recent announcement that a 100-storey tower will be built in the capital by a government investment fund comes as global liquidity is flooding the region and raises concerns the project could represent the front end of a coming new crisis.
 
Najib unveiled the plans for the tower, to be known as the Warisan Merdeka, or Independence Heritage, on 15 October. Two weeks later, Asian Development Bank chief Huruhiko Kuroda warned of two risks facing developing Asian economies like Malaysia: that the recovery in developed economies could be elusive and speculative capital inflows into developing economies could prove volatile.


The United States Federal Reserve is expected to announce a second round of quantitative easing this week, which could prompt the flow of even more speculative capital in search of higher yields into Asia’s developing economies.
Full story in Asia Times Online

Anti-mega tower Facebook page hits 200k milestone

A Facebook campaign to protest the federal government's plan to construct the 100-storey Warisan Merdeka tower has drawn more than 200,000 supporters.

The latest milestone was reached at about 9.30pm yesterday, exactly eight days after the page - titled '1M Malaysians Reject 100-storey Mega Tower' - was launched.

At the time of writing, the page has 201,591 followers. In comparison, the tower's proponent - Prime Minister Najib Abdul Razak - has 453,254 followers.

This achievement was watched intently by Facebook users with many posting 'countdowns' on their status updates as the symbolic 200,000 figure drew near.

“200k!! Congratz Malaysia!!” wrote Sue Sukumaran when the moment finally arrived.

“Let the "voice of people" being heard.... if 200,000 is not loud enough, then we go for 300,000 !! If still not loud enough... then we march toward 500,000...... !!” posted another by the name Tneoh Khye Lock.

Pro-tower page not gaining steam

Meanwhile, pages set up to cheer on the government's latest mega-project has also grown in numbers, but its size still pales in comparison with the detractors.

At the time of writing, the Kami Sokong Menara Warisan page has registered just 2,259 followers.

This page however takes on a racial slant to tower, which will be constructed by Permodalan Nasional Bhd, a government-linked company which runs Amanah Saham Bumiputer, a unit trust fund open only to Bumiputera.

“Bangsa lain bantah menara warisan sebab mereka iri hati dengan kejayaan bangsa melayu (other races object the Warisan towers because they are jealous of Malay success),” wrote the page administrator.

Opponents to the towers argue that the the project was yet another glaring example of the federal government's spendthrift ways despite a burgeoning budget deficit.

The building is set to become the tallest building in South-East Asia, inching past the iconic Petronas Twin Towers, which was recorded as the world's tallest building at 88 storeys each when completed in 1998

Oppose Menara Warisan Merdeka: And for that reason, I petitioned…

By Adrian Ang | www.loyarburok.com


OCT 29 — For the past 10 years on Malaysia’s Budget Day, I have been glued to the television. I have listened to every detail of the Budget Speeches and this year was no exception. As the Prime Minister began his speech, I waited with much anticipation. What’s to be in store for the development of our country?
But my heart stopped when the Prime Minister announced the development of Menara Warisan Merdeka, a 100-storey tower which will be built between the Merdeka and Negara stadiums. The 19-acre mega development project is said to include a condominium and shopping mall. I couldn’t believe my ears.
It struck me that a massive construction project will soon descend on the vicinity of my alma mater, Victoria Institution (VI). Besides VI, there are also 3 other schools within the vicinity of the development area, namely, Methodist Boys’ School (MBS), SRJK (C) Jalan Davidson and Confucian Private Secondary School. I was dazed for a moment before questions started filling my mind.

Will the schools be relocated? What will happen to the traffic flow within the area? Will the students’ safety and health be affected? What about the schools’ environment? And do we need another tower in the first place, given that we already have the Petronas Twin Towers?
I could only imagine the massive scale of the mega project and its effect on the 4 premier schools.
The 4 premier schools are some of the oldest schools in Kuala Lumpur (KL) with VI being 117 years old — the oldest school in KL, MBS – 113 years, Confucian – 104 years, and Davidson – 82 years. These 4 premier schools have produced some of the best brains and minds in Malaysia.
I could only imagine that the noise and air pollution, scaffolding and building equipments, overhead cranes, earth movers, heavy-duty lorries and dump trucks etc will pose safety and health hazards to the students. It is most likely that the development will lead to massive traffic flow and congestion problems.
While I am not against progressive development for the country, the cost of sacrificing quality education is just too much to pay.
The RM5 billion development costs could and should be invested into other areas such as improving education and healthcare facilities, reducing poverty levels, and particularly making life easier through better public transportation and greater assistance to the Orang Asli, the disabled and the elderly.
Among others to:

• Eradicate poverty and improve the people’s standards of living by providing shelter, electricity, water and other forms of assistance to the hardcore poor.
  
• Improve the infrastructure of schools, and increase access to education by providing free books to schoolchildren in rural areas.
  
• Improve the healthcare system by building daycare and dialysis centres, and upgrading equipment and facilities in hospitals and clinics.
  
• Build the capacity of the disabled by providing training to enable them to enter and succeed in the job market while building infrastructure to enable their mobility.
  
• Provide assistance to the elderly by building old folks homes.
  
• Reduce traffic problems in major towns and cities while making them more livable.
  

Hence, I appeal to the rakyat of Malaysia to support and oppose the development of the 100-storey tower! I am still proud to be Malaysian without the tower.
* Adrian is a 4th generation young Malaysian born and bred in Kuala Lumpur. An accounting and finance graduate from London, he has been in the tax profession for the past 10 years. An alumnus of Victoria Institution, he represented Malaysia in the 1996 Australian Marching Band Competition which was awarded a First Class for performance. He is a passionate civil society activist and contributes through various channels. He must stop taking himself too seriously and be a real LoyarBurokker! Follow Adrian on Twitter @AdrianNCF.

Of megalomaniacs and mega-towers

By Azly Rahman

Here is an excerpt from the Facebook campaign, now numbering to almost 160,000 members, rejecting the Menara Warisan proposal:

“Rakyat Malaysia mengatakan TAK NAK kepada Menara Warisan 100-tingkat yang memakan kos RM5,000,000,000 yang dicadangkan oleh PM Najib Razak dalam Bajet 2011. … Malaysians saying no to the RM5-billion 100-storey Mega Tower proposed by PM Najib in the 2011 budget. Malaysia needs better education, better health care, better public transportation, safer neighbourhood, cleaner water, but not taller building. We don’t need another white elephant! …

“Malaysia perlukan pendidikan, perubatan dan pengangkutan awam yang lebih baik, jiran-tetangga yang lebih selamat, air yang lebih bersih, dan bukannya bangunan yang lebih tinggi. … Kita tidak perlukan seekor lagi gajah putih yang membazirkan wang rakyat jelata. … Wahai, saudara-saudari warga Malaysia sekalian, biar kita bersatu tak mengira kaum, agama, budaya, bahasa, pendirian politik, geografi atau kelas. Biar kita bersatu dan membela nasib endiri. Merdeka! Merdeka! Merdeka!”

I am beginning to sense that the issue will contribute to the downfall of the current regime of Barisan Nasional in the next general election. It is as if the last BN hurrah to showcase megalomania and illusions of grandeur will be a rallying point for the masses/rakyat fatigued by he struggle to survive the daily grind while robber barons rob, dine, and wine.

The issue however is, developmental priority and what lies behind the proposal and what the proposed tower signifies. It is a question of political-economy and semiotics of developmentalism.

Even the name “Warisan” begs the question of authentic history of Malaysia and reminds me of the propaganda song “Warisan” (Anak kecil main api …) used by the indoctrination outfit Biro Tata Negara to create unthinking and unquestioning and mentally-domesticated citizens out of the civil servants especially.

Mega tower and idiotic pride

I wrote this as my Facebook status when I read about the proposal:

Tall towers do not symbolise progress. If the Malaysian government insists on otherwise, stick two toothpicks on top of the Petronas Twin Towers to make the building tallest in Malaysia, taller than the previous twin towers. Malaysia can then be known as the Toothpick Capital of the world – ar

Or – a cheaper path towards grandiose-ness is, as a Facebook friend of mine suggested, is to build two high rise towers on top of Mount Kinabalu.

The ruling regime is suffering from a complex called idiotic pride; trumpeting grandioseness on the outside but trampling democracy inside. I see the image of the oppressors smiling at the camera globally while an army boot is on the head of a screaming citizen on the ground, locally.

This is the image of how the nation is responding to the five-billion ringgit question: The Warisan Tower, proposed as yet another megalomanic project to boost a national ego unprepared for a regime change.

Instead of fixing the education system, attending to abject poverty in East Malaysia, poverty everywhere in general, addressing environmental degradation, improving race relations, fixing the judiciary, battling crime by instilling ethics in law enforcement, giving educational financial aid to deserving Malaysians of ALL races, the focus of the developmental agenda is on more towers, palaces, useless real estate projects, and translating meaningless developmental policies derived from a poorly-understood idea of development.

This goes to the ultra-modernisation of our national defense system itself. We didn’t even need to ‘modernise the armed forces’ – the enemy is inside the country, amongst the corrupt politicians and robber barons, not outside of us amongst the internally-problematic Asean nations themselves.

In the history of human civilisations, the erecting of tall structures has in it the question of the winners and losers in history and of megalomanic rulers.

Glorifying tyrants, sacrificing the masses

From the ancient architectures of symbolic power such as the pyramids of Gizeh, the temples of the Incas and the Mayans, the Hanging Gardens of Babylon, the Great Wall of China, the Collosus of Rhodes, and many more – all these are about glorifying tyrants and sacrificing the masses. Millions died unknown in history whilst names such as Ramses, Shah Jehan, Shih Huang-Ti, and Nebuchadnezzar are remembered for their fame or infamy.

In the history of postmodern civilisations, the erecting of the tallest structures has become a race for idiotic pride and madness. The Eiffel Tower, the Empire State building, the Sears Tower, and the Petronas Twin Towers, Xujjahui in China, International Commerce Centre in Hong Kong, Shanghai World Financial Centre, Taipei 101, Burj Khalifa, and the proposed Lotte World II – all these are symbols of idiotic pride of the both the capitalist and socialist worlds.

Down below these towers lie a population characterised by marked disparity between the haves and the have-nots, and of those living in decaying urban slums.

No, we do not need to trumpet our megalomanic tendencies. We need to look at our immediate needs and prioritise as a nation that is losing its sense of direction guided by a regime that is intoxicated with power derived from the orchestration of the archaic strategy of divide and rule using race as a tool.

No, we cannot afford another tower of raw power.

Skyscraper: Opposition barks first, then wags tail

By Rahmah Ghazali - Free Malaysia Today

KUALA LUMPUR: Based on their track-record, the opposition would eventually warm up to the 100-storey Warisan Merdeka tower despite pouring cold water on the proposal now, said a BN MP.

In his Budget 2011 debate speech, Mohamed Aziz (BN-Sri Gading) called on the opposition not to crticise the RM5 billion project because they would “eat their own words” at the end of the day.

Previously, he said, the opposition had condemned the construction of the administrative capital of Putrajaya but it had now become their ultimate goal.

"Before this, they even said they wanted to auction Putrajaya because it was a waste of taxpayers' money. Now they want to take over Putrajaya.

"They also used to condemn the construction of the Penang bridge but now they want a second Penang bridge," he told the Dewan Rakyat this afternoon.

Bung: Facts manipulated

Meanwhile, Bung Mokhtar Radin (BN-Kinabatangan) slammed the opposition for not being grateful for the development which the BN government had brought for the nation.

He also accused the opposition of "manipulating the facts" by alleging that the country's largest fund management company Permodalan Nasional Berhad (PNB) would use taxpayers' money to construct the tower.

"But PNB has made it clear that they will not touch the government's money or the unit trust funds to develop the skyscraper. Instead, PNB will use its own private fund to bear the cost," he said.

Pakatan Rakyat leaders had criticised the project, arguing that it would become another BN white elephant.

Some 170,000 Malaysians had also voiced their objection to the project through Facebook. The group called "1M Malaysians Reject 100-storey Mega Tower" was formed last week.

Building projects unsustainable in long run, say analysts

The Malaysian Insider


KUALA LUMPUR, Oct 25 — Putrajaya’s focus on mega construction projects instead of key reforms in its economic plans — symbolised by the 100-storey Warisan Merdeka tower — will hamper the country’s goal of becoming a high-income nation, analysts have said.

They have stressed that economic and institutional reforms to increase market efficiency and human capital development were the crucial elements to lift Malaysia out of its middle-income trap.

“It is not sustainable as we will have first-class infrastructure and facility and third-world work ethics and mentality,” RAM Holdings group chief economist Dr Yeah Kim Leng told The Malaysian Insider.

“The soft part of the development, which is the human capital, will have to take centre stage for the high-income transformation drive to be successful,” he added.

Yeah noted that Prime Minister Datuk Seri Najib Razak’s reform commitments in his New Economic Model (NEM) have been eclipsed by the mega construction projects announced in Budget 2011 and the Economic Transformation Programme (ETP).

The RM5 billion Warisan Merdeka project has been derided by the opposition and ordinary Malaysians online as a wasteful initiative, with an anti-Warisan Merdeka page on Facebook called “1M Malaysians Reject 100-storey Mega Tower” garnering 156,612 fans as at 7am today since the proposal was mooted on October 15.

Budget 2011 that features other projects such as the RM43 billion new KL MRT project and the RM26 billion KL International Financial District has also been denounced by Pakatan Rakyat (PR) as an election budget honed to win votes over resolving fundamental economic issues. Analysts have also criticised it for neglecting key reforms and ignoring plunging foreign direct investment (FDI).

Various projects in the ETP include the “River of Life” Klang River beautification project in the Greater KL region, future 1 Malaysia malls in China and Vietnam, as well as a huge oil storage facility next to Singapore to form a regional oil products trading hub.
“They have overshadowed the reform agenda, which is the more important element of transformation. Without it, we cannot achieve high-growth momentum and sustain high-growth momentum,” said Yeah, adding that the construction projects were merely supposed to jumpstart economic development by stimulating growth in other sectors like the services sector.

Investment in education was needed for long-term progress, analysts said. — Reuters pic
“Once these projects are underway… we should refocus our economic agenda on reforms, regulatory reforms, how we can enhance the business and investment climate to unleash private sector dynamism, entrepreneurship, and raise market efficiency and competitiveness.”

OSK Research head of research Chris Eng echoed Yeah’s views and noted that the government needed to shift its attention to soft infrastructure like education in the future to upgrade the economy.

“In the long run, there needs to be focus on software elements… like education, policies to encourage entrepreneurship and investment,” said Eng.

Political analyst James Chin pointed out that most of the mega projects would not spur the economy as they relied on funds from government-linked companies (GLCs) instead of actual private investors that were meant to drive most of the government’s ambitious projects.

“In all the mega projects, all the private counterparts are GLCs. They are not the real private sector,” said Chin, honing in on the Warisan Merdeka project where government-linked investment corporation Permodalan Nasional Berhad (PNB) said it had sufficient funds to complete the project.

“There is no real FDI (foreign direct investment) and no real money coming in. It is internally-generated money,” he added.

Previously, the Performance Management and Delivery Unit (Pemandu) identified investments worth RM1.38 trillion over 10 years for the ETP, of which 60 per cent would come from the private sector, 32 per cent from GLCs and eight per cent from the government.

The investment aims to double Malaysia’s per capita income and push the country into the ranks of “developed” nations by 2020, rebalancing Asia’s third-most export-driven economy towards domestic demand and the service sector.

Chin, a Monash University professor, called on the government points its attention instead on developing a services and knowledge economy in a bid to achieve Vision 2020.

“It (construction) won’t help us with a high-income economy. Refocus on the services and knowledge economy, like bringing back talented people from overseas,” he said.
Najib had announced in his Budget 2011 speech that a Talent Corporation will be set up early next year to arrest the country’s growing brain drain problem that is threatening his vision of turning Malaysia into a high-income nation by 2020.

About 700,000 Malaysians are currently living abroad, with half of them in Singapore, while the rest can be found mostly in Australia, Britain and the United States.

The number of Malaysian migrants rose by more than 100-fold in a 45-year period, from 9,576 Malaysians in 1960 to 1,489,168 Malaysians in 2005, according to the World Bank.

Political analyst Lim Teck Ghee was similarly critical of Najib’s grandiose construction projects, pointing out that such projects were unsustainable and likely to rack up higher bills than initially estimated.

“Not only are they not sustainable, but so called iconic projects often turn out to be white elephant projects which have massive costs overruns and take much longer to complete,” said Lim, citing the Istana Negara project as an example.

The cost of the new palace project in Jalan Duta has ballooned to more than RM935 million from the RM400 million figure originally announced by the government in 2006.
The Centre for Policy Initiatives director also highlighted several skyscraper projects in Osaka, Japan that failed to draw investors and resulted in massive public bail-outs in 2002.

“There are plenty of examples from cities such as Osaka where three huge skyscraper projects — the Asian Trade Centre, the World Trade Centre and the Minatomachi Distribution Centre — were forced to seek protection from their creditors. The projects also failed to attract investor support and businesses shunned moving into them,” said Lim.

Warisan Merdeka latest battleground between Pakatan and BN

KUALA LUMPUR, Oct 23 — The controversial 100-storey Warisan Merdeka skyscraper announced during the 2011 budget is fast becoming the latest battleground for voter support between Barisan Nasional (BN) and Pakatan Rakyat (PR).

The project, which promises to be a symbol of a modern and developed Malaysia, has been viciously attacked on all front by the opposition as well as ordinary Malaysians online since the proposal was mooted by Prime Minister Datuk Seri Najib Razak last Friday.

Backed into a corner, BN lawmakers have insisted that the project would help drive the nation’s economy forward, while PR representatives have flayed the government for introducing yet another “white elephant” and falling into the trap of previous government administrations of introducing grandiose but otherwise underutilised projects.

The Najib administration has yet to explain how the projects would help drive the economy forward despite the huge building costs.

DAP Socialist Youth Chief (DAPSY) Anthony Loke confirmed today that PR will be using this issue to rally more public support to pressure the government to abandon the plans of the construction of RM5 billion Warisan Merdeka.

He said as of right now, PR viewed the matter as a number one priority and will be bringing it up in Parliament whenever possible, as well as the Galas and Batu Sapi elections.

“All of the Pakatan component parties are united and have a common stand on this issue...we feel that it is a complete waste of funds and is completely unnecessary. Although we will focus on other issues, this will be the most attention-seeking issue to be raised in Parliament as it has generated a lot of public response.

“We are not using this to score political points. If the widespread opposition to this project is any indication, then Najib must back off from building this building,” Loke told The Malaysian Insider.

The Rasah MP said that PR would go on nationwide speeches to educate constituents on the issue at hand, in an effort to pressure the Najib administration to abandon the plans for Warisan Merdeka.

“This will be highlighted during campaign speeches, mainly on BN’s wasteful spending, but it won’t be the main issue in Galas or Batu Sapi.

“We believe that if enough people oppose this project, we can stop it from being approved. judging from our experience with the sports betting licence, where the government did a u-turn on it, we believe that the government will eventually back down. Najib has a tendency of u-turning at the most crucial times,” said Loke.

PAS vice-president Datuk Mahfuz Omar echoed Loke’s remarks, stressing that PR would “milk” this issue for all it was worth.

“Of course we will be following PKR Youth on a nationwide campaign to educate people because this involves everyone’s interests. Every chance we get, at every campaign, every speech we will make sure that the need to oppose this project is highlighted. What’s more it’s already mentioned online that a lot of people are against the Warisan Merdeka,” said Mahfuz.

Mahfuz told The Malaysian Insider that he had already brought up in Parliament the need for a Parliamentary Select Committee to review the Warisan Merdeka proposal before going ahead with the construction.

“I have mentioned in the Dewan Rakyat the need for a Select Committee to review and discuss the proposal before going ahead with any rash decisions...this committee should be headed by both BN and PR MPs, and at the end of the day we want ti make sure that the project actually benefits Malaysians, not just the government,” added Mahfuz.

BN parties, namely Umno have rallied behind the push for mega projects at its annual assembly and accused PR of being against growth for opposing the government’s plan to spend itself out of a stagnating economy.

Malaysians, who were recently declared the world’s heaviest users of Facebook, have turned to the social networking site to express their dismay over the proposal.

An anti-Warisan Merdeka page on Facebook called “1M Malaysians Reject

100-storey Mega Tower” has been signing up fans at an astonishing rate of over 1,000 fans per hour on Wednesday. It had 60,408 fans at 11.50 am yesterday, and hit 83,002 fans as at 10.01am this morning.

In his Budget 2011 speech, Najib said the rationale for the Warisan Merdeka tower was similar to that of the iconic Petronas Twin Towers, in that it would serve as a symbol of a modern and developed Malaysia.

Najib stressed that the project would also have a “multiplier effect” on the economy and help drive it forward, in addition to providing an attractive commercial centre for Bumiputera and non-Bumiputera businesses alike.

The 19-acre development area of the mega project — which includes a condominium and a shopping mall — is sited on the car park and land adjacent to Stadium Negara and Stadium Merdeka.

BN representatives remain optimistic of the project’s prospects but have admitted that the government administration needed to be more transparent on the issue.

“I admit, we need to provide more details for the proposal to build this skyscraper. The Prime Minister must explain the total benefits of the project. And from what I’ve heard there are over 90,000 people who are against this..we need to explain to them the benefits of Warisan Merdeka,” said Deputy Minister in the Prime Minister’s department Datuk S.K Devamany.

Devamany said that the government would not have introduced such a project without first going through its benefits or weaknesses.

“The project will boost the tourism industry as well as development. I believe that the Prime Minister would not have proposed the project without going through the pros and cons. PM would not allow one project to undermine his administration,” said Devamany.

The Najib administration has yet to explain how the projects such as the 100-storey Warisan Merdeka structure would help drive the economy forward despite the huge building costs - file pic

The MIC vice-president however was non-committal when asked whether the government would scrap the project if there was widespread opposition.

“That, I cannot say. Anything will be possible. If there is enough pressure, the government will review it,” said Devamany.

Umno MP Datuk Nur Jazlan Mohamed reiterated Najib’s views that the project would be as beneficial as past mega-projects like the KLCC and the Petronas twin towers.

“If you go back 12 years ago no one thought the Petronas towers would bring profits. But today its become a centre for Kuala Lumpur to attract foreigners. Foreigners are looking for an international office space, a venue and Warisan Merdeka can offer that. We need a building that meets international standards.

“I think its about timing, where we need to be concerned also about the future, not just today. I believe that once the project delivers results, the attacks against it will stop,” Nur Jazlan told The Malaysian Insider.

Anti-Warisan Merdeka Facebook campaign hits 100,000 mark

A screenshot of the page tonight.

KUALA LUMPUR, Oct 22 — As at 9.20pm tonight, more than 100,000 have signed on to a Facebook campaign opposing the Najib administration’s Warisan Merdeka skyscraper.

The proposed 100-storey building in the city, has stirred up spontaneous grassroots opposition, moving the issue to the front and centre of current Malaysian politics.

More so impressive is the pace of recruitment — that only seven days ago Prime Minister Datuk Seri Najib Razak announced the plan, during his budget speech. It is clear the groundswell opposing it is considerable and now has shaped into a major political minefield for the Barisan Nasional(BN) government.

It began with the Facebook page “1M Malaysians Reject 100-storey Mega Tower” being created anonymously soon after the announcement.

Those who have backed the campaign are ordinary Malaysians who use the popular social networking site.

“Malaysians saying no to the RM5-Billion 100-storey Mega Tower proposed by PM Najib in the 2011 budget. Malaysia needs better education, better health care, better public transportation, safer neighbourhood, cleaner water, but not taller building(s). We don’t need another white elephant! Are you ready for action?

“Announcement to be made when we reach 100,000,” said the administrator of the Facebook page earlier today.

Last Friday, Najib announced Permodalan Nasional Berhad’s (PNB) initiative to complete the RM5 billion construct by 2015.

“A few months ago,some Minister said that the country will be going bankrupt if subsidies are not withdrawn.... so this is why the subsidies were withdrawn... to build another “Mega White Elephant “ project.

“While the people suffer, our leaders are finding more ways to rob the nations depleting wealth !!At this rate in 20...20 Malaysia will become a fully developed Zimbabwe or worse!!” said one of the comments on the page by a Natalie Ho.

Another fan, Kirksman Teo claimed that the government’s push for the building indicated that they had learnt the lesson from their losses in the last general elections.

“A leader once said, the people should not fear the government, the government should. Rightly so.

“Now... Why the devil does the government refuse to listen to the people once again?... Knowing very well that the last time they lost, it was because they didn’t listen,” said Kirksman.

Expectedly, opposition politicians like DAP’s Lim Kit Siang have entered the fray, providing live updates of the growing number of Facebook fans every hour.

The anti-Warisan Merdeka Facebook page has 102,739 fans as at 10.21pm tonight.

In contrast, a pro-Warisan Merdeka fanpage on Facebook has only 244 members as at the same time.

The Najib administration could now be faced with a major hurdle in winning over support for what was supposed to be a symbol and pride for all Malaysians.

No tower please, we're Malaysians

By Patrick Lee - Free Malaysia Today

PETALING JAYA: In a massive chorus of disapproval, 100,000 Malaysians on Facebook have come out in protest of the proposed Warisan Merdeka tower.

The group called "1M Malaysians Reject 100-storey Mega Tower" was formed earlier this week after the skyscraper was first announced by Prime Minister Najib Tun Razak in Budget 2011.

The 100-storey tower, which will be developed by the country's largest fund management company, Permodalan Nasional Bhd (PNB), will cost about RM5 billion. Construction will commence next year, and is expected to be completed by 2015.

Criticising the government's decision, many of the group's members ticked off the government for not using its money wisely.

"This idea is absolutely ridiculous. Anyone with any leadership or governmental sense would know that buildings do not solve the social issues and the unrest of citizens," said a member, Aaron Lam.

"If the leaders of this nation still don't get this, they probably should go back to the basics and play Sim City (a city-building simulation game) or some management simulation games before taking on a real nation," he added.

Other members have suggested that the government pull out of the project and concentrate instead on more pressing issues, such as poverty and education.

"Such a huge amount of money can be put to better use. This sum (RM5 billion) can be used for better causes like eradicating poverty and providing scholarships," said Raevathi Supramaniam.

“Foreigners come to Malaysia to see the beauty of our culture, our food, and our flora and fauna, not a RM5-billion mega tower. There is nothing to be proud of if we have the tower but still have people begging for some money by the roadside," said Nur Quraisha Hanapiah.

“(The government should) use the RM5 billion instead to help our government servants pay for their children's school books, tuition fees and milk for babies,” said another member, Hizwan Ahmad, who urged Malaysians to reject the Barisan Nasional.

Fear of heights

With thousands of new members joining every hour, the group's rapid growth has even caught its members by surprise.

Interestingly, a much smaller counter-group in support of the tower known as "Kami Sokong Menara Warisan" (KSWW) has been formed.

Mocking the anti-tower group, a KSWW member known only as Ali Setan said, "People who aren't supportive of the project have a fear of heights. They say the RM5 billion should go to hospitals, but in truth, they're really suffering (from a fear of heights)."

However, even with a membership of under 300, the majority of KSWW members appear to be against the project.

Disagreeing with growing criticism, many cabinet ministers have sided with the Warisan Merdeka idea.

Najib had said that the project would benefit the economy.

Chipping in her two cents' worth, Tourism Minister Dr Ng Yen Yen said that the tower would bring more tourists to Malaysia.

In a move to quell public anger, PNB's chief executive officer Hama Kama Piah Che Othman said that neither the government's money nor unit trust funds would be used to develop the towering skyscraper.

He said that PNB had more than enough money to build the tower, although it remains to be seen who will foot the bill at the end of the day.

Mega tower will affect PNB unit trust holders, says Mahfuz

Mahfuz: Whether we want it to or not, it will involve money from these schemes and the value of returns of its investments which should be paid out as dividends to unit trust holders... this is their money.

KUALA LUMPUR, Oct 21 — A Pakatan Rakyat (PR) backbencher told Parliament today that Permodalan Nasional Bhd (PNB) would likely have to scrimp on dividends paid out to its unit trust holders to fund the RM5 billion 100-storey Warisan Merdeka tower.

In his debate speech on Budget 2011, Datuk Mahfuz Omar (PAS-Pokok Sena) said dividend payments could be affected although PNB had claimed that money for the project would come from profits made through private investments.

“I would like to remind PNB that the total value of its unit trusts from Amanah Saham Nasional Bhd (ASNB), Amanah Saham Bumiputera, Amanah Saham 1 Malaysia and others, is RM115 billion.

“Meaning that PNB’s profits is actually profits made from its investment of the RM115 billion,” he explained.

PNB is Malaysia’s biggest fund management company and operates a number of unit trust schemes.

He added that it was doubtful that PNB had a larger fund other than that collected through the unit trust schemes.

“I would like to stress here that this means it will directly and indirectly involve money from the unit trust schemes.

“Whether we want it to or not, it will involve money from these schemes and the value of returns of its investments which should be paid out as dividends to unit trust holders... this is their money,” he said.

Mahfuz told a press conference later that it was “unfair” to use public money to construct the 100-storey tower, which many have predicted would eventually turn into a white elephant.

The PAS MP added that it was redundant for the government to build the iconic tower with its sights set on turning Kuala Lumpur into a world-class city when even Naza TTDI, the property arm of Naza Group, had already expressed its intention to construct a similar tower, touted to be 100-storey high or more.

Last December, it was reported that Naza TTDI would build an iconic tower on a 25ha site near the proposed Matrade Centre here.

However, the tower’s height was yet to be finalised and the group’s managing director SM Faliq SM Nasimuddin was quoted as saying that it would depend on the amount of investments it could secure.

“If they get the land, they will build it and this means we will have one tower already,” said Mahfuz.

He pointed to the current property glut in the country and how Malaysia would have an excess of 115 million square feet of office space by the year 2014.

“This is excluding the PNB tower and Naza’s tower. So now we have an excess of office space although demand has dropped significantly,” he noted.

Mahfuz added that even Menara Citibank had lowered the rental rate for its office space from its original over RM7 for each square feet to between RM6 and RM6.50.

“This lowering of rate shows that the demand has dropped so much that they were forced to do it,” he said.

Mahfuz also suggested to House earlier to form a special parliamentary committee to study the matter as well as to examine all proposals by the government for the construction of mega projects.

“These mega projects should go through an approval process before they are started. If all committee members agree with the projects then they can be approved,” he said.

Backlash over mega-tower

(AFP) - THE Malaysian government's proposal to build a 100-storey mega tower in the capital has triggered a backlash from the opposition and on a fast-expanding Facebook petition.

Plans for the tower, to be built by 2020 at a cost of US$1.6 billion (RM5 billion), were unveiled by Prime Minister Najib Razak during last week's budget speech, which included a number of major infrastructure projects.

The building, named 'Warisan Merdeka' or 'Heritage of Independence', would be the tallest in Malaysia, dwarfing the iconic Petronas Twin Towers which were the world's tallest buildings at 88 storeys when completed in 1998.

Mr Najib said that such projects exemplify the spirit of 'Malaysia Boleh' or 'Malaysia Can!', a national campaign conceived by former premier Mahathir Mohamad, a huge advocate of mega projects.

Mr Mahathir, whose own schemes included the Proton national car and the multi-billion-dollar administrative capital Putrajaya - both of which have failed to thrive - has warmly endorsed the new skyscraper.

But a Facebook page created last Saturday, to which more than 9,600 people had signed up by Tuesday afternoon, has seen an outpouring of criticism from Malaysians who say the money would be better spent elsewhere.

Angry comments

A sampling of angry comments from Malaysians:

'Malaysia needs better education, better health care, better public transportation, safer neighbourhoods, cleaner water, but not a taller building.

'We don't need another white elephant!' said the page, which about 600 people were joining each hour.

'I will support this project if you give me the contract!' - Facebook user named Chee Chuan Tat, referring to endemic crony capitalism linked to the Barisan Nasional coalition.

'It's taxpayers' money, and taxpayers say NO.' - Adrian Matthew Yee.

'What the building will do is to destroy the character of the area while creating a traffic nightmare for all.

There are more than enough office spaces in downtown KL and this will cause a glut of office space, becoming a white elephant like many of the other government projects.' - Opposition lawmaker Fong Kui Lun, in whose constituency the building would be located near the city's chaotic Chinatown, said it would be an eyesore and totally unsuited to the crowded downtown district.

'The country does not need another mega project as the era of mega projects is gone and most Malaysians are not impressed by them any more.' - Tony Pua, also from the Democratic Action Party which is part of the opposition alliance, said. -- AFP