Instalment plans causing poor Malaysians to pay more, says Khazanah reportl

While lower-income households may have televisions, refrigerators and cars, such ownership does not indicate prosperity but debt, as families pay more than the value of these goods through hire purchase plans with high interest rates.

Giving an on-the-ground picture of whether Malaysians are truly benefiting from economic policies, a Khazanah Research Institute report on "The State of Households" released yesterday showed inequality in many areas, including the fact that the rich pay less for the same items because they can afford to pay in cash.

Poorer Malaysians who rely on instalment plans to purchase goods are paying more than their wealthier counterparts for the same items, due to the high interest rates, the report stated.

This “ansuran mudah" scourge has caused Malaysians to spend most of their income, have little savings, and become more susceptible to price increases, the institute noted.

The report said that consumers who opt for instalment payment offers could pay up to 50% in annual percentage rate (APR) for products, such as televisions, washing machines and fridges.

“The wealthiest pay by cash, the better-off choose credit based on interest rates and the least well-off choose the installment payments offer that they can afford,” it said.

“Low-income households, who have low financial literacy and limited access to debt, appear to choose financing based on the affordability of the monthly or weekly installments rather than the true APR.”

The report revealed that a RM24,936 Perodua Viva at an interest rate of 3.38% for nine years may cost only RM271 a month.

However, consumers would be paying RM6,827 in interest, or 27.38% of the total price, at an APR of 6.14%.

“With a nine-year loan, the Perodua Viva seems affordable at RM271 per month. But the reality is that the buyer pays more than a quarter of the purchase price in interest payments,” said the report.

“The problem is more acute with consumer durables, as the rates are almost 50%.”

The report said that households earning less than RM3,000 have a relatively low share of total household debt but their borrowings are proportionately higher than the rest, at seven times their annual income.

“The pressing concern then is how much debt low-income households have taken relative to their ability to pay.

“They spend most of their income and have little savings, making them susceptible to financial stress should interest rates and inflation continue to rise,” said the report.

Other examples of consumer items in the report was how a Samsung television costing RM1,549, paid at an installment of RM15 a week for five years would rack up a total interest of RM2,419, or 156.14% of the original price. The APR would be at 46.05%.

If a consumer purchased a RM1,024 Toshiba Washer based on a weekly installment of RM10 for five years, they would be paying a total interest of RM1,657, or 161.78% of the product’s price. The APR would be at 47.41%.

The interest rate for a Toshiba refrigerator priced at RM1,049 would be RM463, if paid at a weekly installment of RM16 for two years, with an APR of 37.9%.

“A very high proportion of households own cars (78%), motorcycles (66%), refrigerators (96%) and washing machines (91%),” said the report, citing figures from 2012.

“Almost every household owns a television (98%) and a mobile phone (95%), while 57% subscribe for pay TV (Astro). However, only 39% have an internet subscription.

“Most cannot be buying all these with cash, since their incomes are low. They can only be doing so on credit,” the report said.

These higher debts to service resulted in lower savings, as shown from data from Amanah Saham Bumiputera (ASB), the unit trust fund for Bumiputeras.

ASB data showed that the bottom 71.4% of unit holders in 2013 have an average of RM554 in their accounts compared with the average for the top 0.2%, which is RM725,122, said the report.

Wealth and income disparity was also evident from Employees Provident Fund (EPF) data which showed the savings of the top 17,061 members being greater than the total savings of the entire bottom 44% which comprises 2,854,419 members, it said.

“Active EPF members in the 41-55 age group, who are on the brink of retirement and have their careers’ worth of savings, have on average RM147,057 each.

"But this is distorted by the richest 5,446 members who have on average RM1.56 million in savings.

“The bottom 13.5%, meanwhile, have an average savings of RM3,580 and the next 7% an average of RM14,848.

“Low savings and low wealth are a result of low incomes. Low EPF savings of the bottom 20.5% and high wealth inequality are consequences of disparities in income,” said the report.

It added their low levels of savings would mean most families would be in trouble in the event of a shock, such as a reduction in income, unemployment or other emergencies.

The report proposed that the government require all providers of consumer credit to prominently advertise the true APR, in an effort to protect those susceptible to installment payments.

It also mooted a realignment of responsibility, noting that the regulation of credit was distributed between Bank Negara Malaysia, the Ministry of Domestic Trade, Cooperatives and Consumerism, and the Ministry of Urban Wellbeing, Housing and Local Government.

The report also proposed teaching financial literacy in schools.

Meanwhile, the report noted that higher income households have a higher propensity to save and their savings generated returns and further increased their wealth, contributing to the widening wealth gap.

“We have many wealthy people: Malaysians were the top foreign home buyers by transactions in Singapore in 2012; Malaysians were the fourth largest buyers (4%) of newly built London property in 2012; around 7,000 houses costing more than RM1 million are sold in Malaysia each year; Malaysians purchase many luxury cars,” it said.

In 2013, 28,298 luxury cars were sold to Malaysians, including brands such as Volkswagen, BMW, Mercedes Benz, Audi, Lexus, Land Rover, Mini Cooper and Porsche. – November 18, 2014.

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Who’s being truthful about economy, Dr M or Bank Negara, asks Perkasa

Perkasa today said that the criticisms of former premier Tun Dr Mahathir Mohamad of Datuk Seri Najib Razak's management of the economy was contradictory to a Bank Negara report which had painted positive reviews of the country's economic growth.

President Datuk Ibrahim Ali said that the country's economy grew 6.2% in the first quarter of this year and 6.4% in the second quarter, as reported by Bank Negara.

"So there is a contradiction between Dr Mahathir's statement that the economy is ruined and what Bank Negara said, that it was on the right track. So who is telling the truth?" he told The Malaysian Insider today.

Dr Mahathir had said on Monday that he was withdrawing his support for Najib and would now be criticising his administration as his performance was worse than his predecessor Tun Abdullah Ahmad Badawi.

Dr Mahathir said he had hoped Najib learnt lessons from his poor performance in the last general election but it appeared that he had not.

“Many policies, approaches and actions taken by the government under Najib have destroyed inter-racial ties, the economy and the country’s finances,” he added.

“It is not because I do not love my leaders. But I love my people and country more,” he wrote in his blog, chedet.cc.

Ibrahim suggested that Dr Mahathir and Najib sit together to discuss the issues that have been raised and, together, find a way to resolve them.

He said Najib also had to stop being silent and answer all the criticisms that have been thrown at him by Dr Mahathir in order to stop the people from slamming him.

"Each have to give their own explanation or Najib and Dr Mahathir have to seriously discuss based on the facts we have. Make right what is needed for the country's benefit."

"When there is a clear admonishment, I hope Najib as the PM takes it positively and Umno leaders do not have to be defensive as it will only bring about losses," he said.

He also hit out Dr Mahathir, who is Malaysia's longest-serving prime minister, saying that his criticisms were not very clear in discussing the issue in detail.

He said, Dr Mahathir's statement on Najib's "humble attitude towards neighbouring countries" also had to be further explained so that the people could understand what he meant.

"Many have asked me about what he said on this and the economy. The statements were too general. Many want to know what he was talking about in detail.

"Dr Mahathir should explain this. Even if it's not long, there should be a few examples so we can understand it clearly.

"Najib then has to explain the issues Dr Mahathir has brought up professionally and convincingly," he told The Malaysian Insider.

Ibrahim said leaders should accept Dr Mahathir's criticisms well as it was a "sincere" admonishment from a former PM who led the government for 22 years.

"We all know that Dr Mahathir has been very vocal and open since before, what more after 22 years of being the prime minister. After he had done so much for the country, of course he is more sensitive to what is happening in the country.

"His criticisms towards Najib is to see Malaysia grow into a great and strong country," he added.

Dr Mahathir, the former Pasir Mas MP said, should not stop with his criticisms as it was an "emblem of democracy".

"We practise democracy and the freedom of speech. So anyone, including Dr Mahathir, has a right to speak. We have to hold on to this principle. We cannot say that he's retired so he shouldn't speak," he said.

Taking a shot at opposition leader Datuk Seri Anwar Ibrahim, the Perkasa president also said this was the best time to judge the sincerity behind the criticisms of Dr Mahathir and the former.

"We can assume that Dr Mahathir's comments are sincere as he has no ambition of becoming PM again. He has retired from politics, which is different from Anwar.

"Anwar is in the process of fighting to become PM. He has to make threats and accusations that will benefit his political career. He wants to smear the government to become the prime minister. Dr Mahathir is not like that, he is sincere," he added. – August 21, 2014.

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RHB to swallow CIMB, MBSB?

(The Rakyat Post) - One critical element has yet to be fully addressed in last week’s plan to create a mega-Islamic bank via the merger of CIMB Group Holdings Bhd, RHB Capital Bhd and Malaysian Building Society Bhd (MBSB) – the 21.6% stake held by Abu Dhabi government investment body Aabar Investments PJS.

The omission of how this Aabar stake will be handled is especially compelling, given that it has often been cited as the main reason why CIMB Group and Malayan Banking Bhd called off their attempts to buy up RHB Capital in 2011.

The lack of any official comment by Aabar in the past week is rather telling and its track record of rarely exiting any of its investments could mean Aabar probably has a bigger plan for its RHB Capital stake that has yet to become public.

What Aabar’s as-yet-undisclosed plan is could be the key to how the merger proposal, which has taken everyone by surprise, somehow secured swift approval from Bank Negara Malaysia (BNM) for negotiations to take place within an exclusive 90-day period, with a further time extension allowed.

Without any idea of what the bigger picture is, and how Aabar fits into the overall scheme of things, there have already been a number of parties which have expressed concern over how the merger could be negative for CIMB Group.

Even international bodies like Moody’s Investors Service and Fitch have issued cautions on how CIMB Group will be impacted, while stating the proposal would be positive for both RHB Capital and MBSB.

If so, why would CIMB Group want to be part of this merger proposal? It doesn’t exactly need to acquire local banks as it is already an Asia-wide entity capable of buying up prospects in any country it’s already operating in and beyond.

And assuming that CIMB Group is taking the lead in this merger plan, why would its president and group chief executive officer Datuk Seri Nazir Razak be relinquishing his executive post and moving to Khazanah Nasional Bhd – instead of staying on to head the enlarged entity?

With so many pieces of the puzzle still missing – including how staff redeployment and client management will be handled, plus the whole deal not making much commercial sense as yet – all available clues point towards bigger forces holding sway rather than just the three entities involved.

This is where the Employees Provident Fund (EPF) – which has significant stakes in CIMB Group, RHB Capital and MBSB – and Aabar are likely in the driving seat for the merger, and possibly acting as proxies for the Malaysian and Abu Dhabi governments to jointly set up the mega Islamic bank.

READ MORE HERE

‘Don’t bank on Subra as human resources minister’

National Union of Banking Employees urges the prime minister not to appoint Dr S Subramaniam as human resources minister, accusing the latter of failing the working people.

PETALING JAYA: National Union of Banking Employees (Nube) today urged Prime Minister Najib Tun Razak not to reappoint MIC deputy president Dr S Subramaniam as human resource minister.

In a statement, Nube secretary-general J Solomon said that Subramaniam had failed to protect the rights of the Malaysian workforce since his appointment to the post five years ago.

“On top of that, Subramaniam had also degraded the honour of those who had worked hard to protect the rights of workers for the past 56 years,” he claimed.

In the past two years, workers’ unions and Subramaniam had clashed over several issues pertaining to issues on workers’ rights.

Chief of the complaints was when Subramaniam tabled the law to amend the Employment Act 1955, changing the term “contract of employment” to “contract for employment”.

Unions have alleged that the amendment would further erode workers’ rights, a charge Subramaniam had dismissed.

In his criticism against Subramaniam, Solomon accused the MIC leader of conspiring with a local bank to validate an in-house union to diminish Nube’s influence.

“And in 2011, the minister blatantly lied to the International Labour Organisation (ILO) by saying that the High Court has decided that the registration of the in-house union was valid.

“The truth is that the High Court did not make a decision on the matter yet,” he said.

Solomon added that instead of using his powers to resolve disputes between workers and employers, Subramaniam had deliberately left the matter to be dealt in the court of law.

“The minister has the power to resolve this disputes. Even the court is perplexed on why Subramaniam is not making any decision,” he said.

Solomon urged Najib to appoint a human resources minister who would reverse the unjust decisions made by Subramaniam during his tenure.

“We hope that the new minister will heed the prime minister’s advice in not being arrogant and restore the honour and dignity of our working people,” he said.

RM19mil losses: Businessman claims signature forged

A businessman was shocked to find that the Kuala Lumpur High Court had attested three affidavits without verifying it with him.

KUALA LUMPUR: A businessman whose company was tasked to execute the RM272 million Melaka Tram project today claimed that his signatures were forged in three affidavits submitted to court over a shares dispute, causing him to lose shares worth RM19 million.

Mrails International Sdn Bhd managing director V. Jeya Kumar said he was even more shocked to find out that the Kuala Lumpur High Court had attested the three affidavits between last year and now without verifying it with him.

Speaking to reporters after lodging a police report here over the forged signatures, Jeya Kumar said he was taken to court last year by an individual over a shares transfer dispute. He declined to name the individual.

Jeyakumar claimed he left the matter to a lawyer as he had often travelled out of the country last year.

After a while, he was told that he had lost the case and he suffered another blow when the Court of Appeal handed down a similar judgment in July.

Perusing court documents later, he found out that someone had forged his signature in an affidavit dated July 21, 2011.

“That day I was not in the country at all. As I continued reading the documents, I found out more,” he claimed.

He however did not want to speculate whether his lawyer was the one who did this.

Jeya Kumar also criticised the court for their oversight, saying that it can be equated to an injustice to him.

The businessman said he would have go to the police station for another round of statement-recording.

He also said the dispute had nothing to do with the tram project.

Banks Urged To Go Easy On CTOS, CCRIS Flagging To Help The Young Buy Houses

KUALA LUMPUR, Oct 8 (Bernama) -- Banking institutions were today urged to be flexible to the young whose names are listed on Credit Tip-Off Sdn Bhd (CTOS) and Central Credit Reference Information System (CCRIS) to enable them to get housing loans.

Datuk Idris Haron (BN-Tangga Batu) suggested that the CTOS and CCRIS conditions should not be imposed on them.

"They might have made a wrong move in managing their finances at the outset, as a result their names are listed in CTOS and CCRIS and they are facing problems to secure housing loans. So, I propose the Finance Ministry and banks be flexible with them," he said.

Idris, who is also Syarikat Perumahan Negara Berhad (SPNB) chairman, said in this manner it would not affect the opportunity of the young to invest in a home.

"A house is an immobile property, not mobile property like a car or a motorcycle. It can also be used as collateral. So, if the applicant runs away, the bank can auction the house to recover the amount it lost," he said when debating the 2013 Supply Bill in the Dewan Rakyat.

Furthermore, Idris also suggested that the government introduce a ceiling price to high end housing projects specifically in urban areas to control house prices and prevent speculation on property.

Idris also suggested that the real property gains tax period imposed be raised to 10 years from five to avoid resale of property in a short period of time.

The Dewan sits again Tuesday.

Woes of an ex-con wanting to go legit

S Balachandran is at his wits end after banks and government agencies turn down loan applications for his agricultural business.

KUALA LUMPUR: An ex-convict desiring to turn over a new leaf is finding it hard to get loans from government agencies for his agricultural business.

Initially, 43-year-old S Balachandran approached banks for loans to start the agricultural business but was rejected because he was blacklisted for failure to settle his credit card loans

Balachandran, from Taiping, Perak, said he was disappointed that even his loan applications to several government agencies were thrown out due to the blacklist.

“I was imprisoned in 1998 and released in 2009 and by that time I was already hitting 40…and I had difficulty landing jobs.

“I then decided to venture into the agriculture business after being impressed by the “Agriculture is Business” campaign run by the Perak state government,” he said.

“I got a lease for a 10-acre plot of land and planted chilies. I mortgaged my house. My family members chipped in some money. In total I spent about RM150,000 for the business.

“I need another RM50,000 to switch to an automated sprinkler system to water the land as it will be quicker and also yield better income. Right now I draw water from a pipe using buckets.

“At the present time, my income is less than my expenditure,” said Balachandran.

Balachandran said although he could understand why banks rejected his loan applications, he could not come to grips on why government agencies were doing the same.

“I took the matter up to the Menteri Besar (Zambry Abdul Kadir) and received a call from his special officer S Veerasingam who instructed me to attend a briefing by the Special Secretariat for the Empowerment of Indian Entrepreneurs (SEED).

“The meeting was held on Sept 9, where more than 500 people turned up. The meeting was conducted by Dr AT Kumarajah who talked only on the issue of those on blackslists.

“He offered no solutions and to my dismay, he said we still have to follow the normal procedures in applying for loans from banks.

“Here we are asking the government’s help after being rejected by the banks and he’s telling to follow procdures. What’s the point of have meetings and telling us to go back to the banks?

“In my case, Kumarajah promised to look into it personally. But, it has already been three weeks and he doesn’t even pick up my phone calls,” said.

Balachandran said he faced the same fate when he approached MyNadi, an non-governmental organisations set up to help and assist Indian businessmen.

“They visited my farm and promised to sort out my problem. But, it has been already two months and so far no signal from their side,” he added.

Balachandran said he was also disappointed with Tekun Nasional as he was only allowed to borrow RM9,000 when he had applied for a RM30,000 loan.

“I’m angry and frustrated. I work hard, want to lead a clean life. My friends who are out of prison are living a lavish life doing unlawful things.

“I made a mistake and landed in jail. But now I want to lead a new life. But I’m tired of trying…I don’t know how long I can hold on,” he added.

Banks in cahoots with crooks?

A consumer group says 99% of banks are guilty and threatens to file class action suits.

PETALING JAYA: A consumer group today accused local banks of failing to protect their clients’ rights through negligence and unethical practices.

Alleging that 99% of banks were guilty, the Consumer Association of Subang and Shah Alam (CASSA) told FMT that it would be filing class action suits against them, but did not say when.

CASSA president Jacob George said the complaints his organisation had received covered more than 400 cases of various breaches of duty to bank clients. He added that these complaints had become more frequent in recent days.

He alleged that these breaches were the result of an “unfortunate symbiotic relationship” between banks and “predators”. He also attacked Bank Negara for its alleged failure to rein in the culprits.

“Banks are very protected, and Bank Negara has done nothing,” he said.

George’s comments followed a FMT report about mutton seller A Muthukrishnan, 44, who may soon lose his home in Selayang Baru after a group of licensed money lenders allegedly duped him into signing a set of documents.

Muthukrishnan is now disabled. He said he lost his thumb after being set upon by thugs hired by the money lenders. He also blamed Standard Chartered Bank, saying it had neglected to inform him that it was finalising the transfer of his house to the money lenders.

George’s comments today came five days after he held a press conference over the issue. On Sept 5, he highlighted the plight of Paul Murugesu, a 53-year-old businessman who bought a piece of land in Klang for RM11.5 million in 2010, but which his bank auctioned off two years later, allegedly without giving him a chance to settle his loan.

Major flaw

“In the case of Muthukrishnan,” George said, “it seems arrogant for the bank to imply that he was wrong in going to the media.

“This shows the true character of the banks. They just don’t want bad publicity. How then can an ordinary man raise his grouses?”

He said the bank in question owed a duty to its clients to stop third parties from manipulating the system.

“The bank owes Muthukrishnan a fiduciary duty to immediately inform him of a suspect or unusual behaviour of a third party, and not allow the man to lose his house without even giving him proper notice,” he said.

“It is a major flaw and the fault lies with the banks for thinking they have absolute powers over properties.”

“The banks’ first duty is to protect the interest of clients. Why did they communicate with outsiders? Even if there was power of attorney, wouldn’t you check with your client first?

“It’s the same with credit cards. Shouldn’t a bank call up the holder when a suspicious purchase is made?”
In making the threat of class action suits, George claimed to have information that unscrupulous parties were paying huge sums of money for insider information from banks.

“Banks are also working alongside racketeers, smugglers of drugs and tobacco, money lenders and loan sharks,” he said. “Are these people using banks to launder money?”

BNM saga reawakened

The Sun
THE ghost of Bank Negara Malaysia’s (BNM) epic foreign exchange trading losses, said to have run into tens of billions during the 80s and 90s, has reawakened.
Like a dormant volcano whose time to re-erupt has come, the controversy involving the central bank’s infamous speculative practices blew up with such a shudder last weekend that even Tun Dr Mahathir Mohamad was called to respond.
Mahathir, who was prime minister at the time, commented to reporters that he was not afraid to be investigated. The Opposition can open any file they had on him, he said in response to DAP adviser Lim Kit Siang’s assertion that Pakatan Rakyat, should it take over the federal government, must initiate a royal commission of inquiry into the affair.
Other key figures reportedly implicated are the then finance minister Tun Daim Zainuddin and BNM governor during that period, the late Tan Sri Jaffar Hussein. A fourth person, the then BNM deputy governor, Tan Sri Nor Mohamed Yackop, is now a minister in the Prime Minister’s Department.
Although the issue has been raised before, this time it was perhaps more damning and detailed. This is because the individual who spoke about it at a forum organised by the Penang Institute, a state government think-tank, on Saturday was privy to the internal happenings at BNM until 1994.
Dr Rosli Yaakob was a senior manager during the crucial years when the speculative practices were said to occur, and was even on the panel that prepared and presented the bank’s semi-annual brief. He is currently Negri Sembilan PAS deputy commissioner.
Incidentally, Opposition Leader Datuk Seri Anwar Ibrahim, who was finance minister from 1991 to 1998, also spoke at the forum. Anwar maintained that the matter was kept from him after he assumed the post. He has however been accused of covering up for it, including by Lim – the opposition leader and DAP’s Tanjung MP in the early 90s – who held Anwar personally responsible for the losses.
The problem with this whole affair is that there has been neither an official investigation nor an inquiry into the matter to assuage public confusion and concerns. No one, aside perhaps from the perpetrators, knows how much money, if any, was lost or how this was done.
Rosli’s account, delivered to a packed hall seated in stunned silence, would have raised more curiosity about what could have occurred.
Even the volume of money that was supposedly involved has come into question. Lim has put the losses at about RM30 billion. Rosli, however, pointed out that it was once reported that at the height of the speculation BNM had spent RM270 billion. “This is no small amount,” he said.
According to Rosli, the market norm then was to trade in lots of US$1 million, US$5 million or US$10 million, but that BNM traded in US$50 million lots (up to 5-10 lots per call) and sometimes, a few “yards” (US$1 billion per yard) a day.
Its closest rivals were Japanese fund managers who also traded in lots of US$50 million, but only once or twice a year, he said.
If true, this effectively made BNM the largest player in the international currency market, as it is said to have competed head-on against the likes of George Soros.
And Rosli’s indictment was emphatic: “They did not speculate, they gambled and did so recklessly and irresponsibly with no regard for the safety of BNM assets.” Even Alan Greenspan of the US Federal Reserve had warned BNM to stop its speculative activities, he added.
BNM’s strategy was to hit a currency for a couple of yards, and once the initial transaction had gone through, hit it again with another couple of yards, normally only minutes later, Rosli alleged.
“This sent shocks through the market and dealers scrambled to buy the currency, sending it up. BNM sold the currency with a healthy profit,” he said. “But then, other dealers caught on to the scheme. They hit back.”
Rosli specifically pinpointed Jaffar’s appointment as governor in 1985 at the beginning of the foray.
“Previous governors were all against speculation and fiercely defended BNM against any undue outside interference,” he said. “Prior to this, the main thrust of reserve management had always been to preserve the value of the Malaysian ringgit and to maintain liquidity.”
The government should once and for all put this matter to rest with a proper inquiry, to address the inevitable public disquiet on the affair. For after having begun to spew smoke again, this billion-ringgit volcano is not likely to simmer down for some time to come.
Himanshu is theSun’s Penang bureau chief.

Banking on non-Malays for stronger mandate

Prime Minister Najib Tun Razak begins a two-day visit to his 'vote-bank' in Sabah in what seems to be a final round of election push as speculation of a nearing national polls grows.
ANALYSIS

With 25 parliamentary seats up for grabs in the 13th general election, Sabah will be the key to Prime Minister Najib Tun Razak’s aim to score bigger in a polls that would determine his political future in the ruling party, Umno.

Winning a stronger mandate would be crucial to Najib’s survival in a party that had shown resistance to his liberal reform pledges and stalled plans to roll out unpopular but pivotal policies needed to revive the ailing economy.

Najib is scheduled to visit Sabah tomorrow and will meet voters in several programmes around the state including visits to non-Malay constituencies.

The prime minister has repeatedly said in the past that the ruling coalition cannot survive on Bumiputera votes alone and that support from the country’s ethnic minorities is key to realising Putrajaya’s transformation plans.

In reality, Najib will need much of the non-Malay support to regain the coveted two-thirds parliamentary majority.

Achieving this will seal his position as a popular leader, backed by the country’s majority, and clear the path against any resistance to greater economic liberalisation especially from the hawks within his own party.

But poll data from previous by-elections and the Sarawak state election showed the opposition making significant inroads in Sabah and Sarawak. Chinese support in particular, is swaying towards Pakatan Rakyat.

Although pundits believe Sabah will remain a vote-bank for Barisan Nasional, the ruling coalition could see itself losing a few Chinese-majority seats judging from the voting pattern in Sarawak which saw the opposition virtually wiping out its rivals in the predominantly Chinese urban seats.

Observers believe Pakatan could do more damage if it could match BN’s mighty resources but money remains the opposition bloc’s biggest drawback.

This setback will be a major blow to the coalition’s ambition to take over Putrajaya.

Surging popularity

Pakatan will also have to deal with Najib’s surging popularity which is likely to further increase with the recent tabling of several reform laws including the just passed Security Offences (Special Measures) Bill meant to replace the Internal Security Act (ISA).

Pundits believe the tabling of laws aimed at improving civil liberties would help boost Najib’s reform credentials and is likely to influence his decision on the election date.

Talks are rife that Najib will want to capitalise on the current “feel-good” environment and call for the general election as early as June.

Influential former premier Dr Mahathir Mohamad had also said that holding national polls now would be good for the prime minister.

BN component parties were already instructed to submit their list of candidates and its secretary-general Tengku Adnan Tengku Mansor had said that the vetting process will begin after the April 30 deadline.

Najib had said in the past that his coalition would adopt the “winnable candidate” tactic, a strategy that provided a glimpse into the premier’s ambition to restore BN’s dominance “by hook or by crook”.

Explain, Bestino investors tell Bank Negara

The investors want the central bank to clear the air regarding the statement made by Bestino director Chong Yuk Ming.

PETALING JAYA: Embattled Bestino investors have expressed disappointment with Bank Negara Malaysia over the nation’s biggest gold scam.

In a press statement, Bestino Action Committee urged the central bank to clear the air over the statement made by Bestino director Chong Yuk Ming that Bank Negara had yet to give the green light to settle the investors’ money.

According to a news report on Feb 13, Chong said Bestino was ready to return the money to the investors on April 30 since the company had US$146million (RM438mil) in the HSBC Bank, Hong Kong.

He however claimed that the gold investment scheme company needed Bank Negara’s approval to bring the money into Malaysia.

In view of this, the action committee urged Bank Negara to state its stand on the matter.

More than 6,700 people had invested in Bestino but the company was later raided by Bank Negara.

On Dec 22, 2011, the action committee held a meeting with Bank Negara assistant governor Abu Hasan Alshari. The latter had accused the Bestino management of not being cooperative and not disclosing details of its properties.

At the same time, Bank Negara had also said that an investigation showed that Bestino had no record of owning properties outside the country.

“It is clear cut that both sides (Bestino and Bank Negara) are giving contradictory statements,” said the action committee. “We want to know who is speaking the truth?”

The action committee had launched a signature campaign, which would be later submitted to the Bank Negara governor and attorney-general next month.

BNM can freeze Bersih assets, says Awang Adek

Ambiga said money for the Bersih rally was donated by Malaysian citizens. — file pic

KUALA LUMPUR, July 15 — Datuk Awang Adek Hussin today said Bank Negara Malaysia (BNM) can freeze the assets of those believed to be participating in activities deemed risky to the nation’s security if the police recommend so.


The deputy finance minister highlighted this in relation to reports that the Bersih 2.0 movement headed by Datuk Ambiga Sreenevasan was receiving foreign funding for its activities.

According to Awang, provisions within the Anti-Money Laundering and Counter-Terrorism Financing Act allowed for the central bank to not only bar access to such funds but also trace both deposits and withdrawals of the offending accounts.

Bersih 2.0 chairman Ambiga was earlier reported to have received funds from foreign non-profit organisations through a local bank.

The report carried by a local newspaper said the bank was chosen by Ambiga and the NGOs to help the former Bar Council president in her plan to “cause chaos in Malaysia”.

It was also alleged that an opposition leader owns shares in the bank.

Responding to the issue last week, Inspector-General of Police Tan Sri Ismail Omar said the police will work together with BNM to investigate the claims.

Bersih was also hit before by allegations of having received funding from, among others, foreign Christian organisations to finance its July 9 rally for electoral reforms.

The group, however, moved to repudiate the accusations by saying the donations for the rally came from Malaysian citizens here and abroad.

It also clarified that money the group received from two US organisations — the National Democratic Institute (NDI) and Open Society Institute (OSI) — were for other projects unrelated to the July 9 march.

Bersih 2.0’s protest last Saturday saw thousands converge on the capital city in a march for free and fair elections.

The protest, which the government had earlier declared illegal, turned chaotic close to midday when the police fired tear gas and water cannons to disperse protestors.