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Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts

Saturday, 24 January 2015

Malaysia still a flawed democracy, says EIU

Today online

KUALA LUMPUR — Malaysia’s pace of democratisation has improved only marginally over the years and it remained a “flawed democracy” last year, the same category it occupied in 2008, the Economist Intelligence Unit’s (EIU) latest findings showed.

The country placed 65th out of 167 nations and federal territories reviewed in the EIU’s Democracy Index 2014, putting it 10 spots ahead of Singapore, but far behind other South-east Asian peers such as Indonesia, which is 49th, and the Philippines in the 53rd spot.

Last year, Malaysia was categorised as a flawed democracy from its aggregate grade of 6.49 out of 10, according to scores tabulated from expert assessments and public surveys.

Flawed democracies are countries that respect basic civil liberties and generally hold free and fair elections, though they may be marred by problems such as infringements on media freedom, said the EIU.

Apart from possible irregularities in elections, a flawed democracy also suffers from other significant weaknesses such as problems in governance, an underdeveloped political culture and low levels of political participation, the EIU said.

Civil society movements in Malaysia have previously alleged that clandestine gerrymandering, the abuse of government machinery, strict media controls and vote-rigging in elections have allowed the ruling Barisan Nasional (BN) coalition to stay in power for more than five decades.

Despite the allegations, BN lost five states to the opposition as well as its customary parliamentary supermajority in a 2008 general election that was later described as a “political tsunami”. Allegations of unfair polls arose more strongly after the following general election in 2013, when BN lost the popular vote but remained firmly in power and whittled down the number of opposition-held states to only three.

The EIU findings put Singapore in 75th place last year, under the flawed democracy category, with a score of 6.03. That was an improvement from its “hybrid regime” ranking in 2008, when it came in 82nd place with a score of 5.89.

In its report, the EIU highlighted the notable trend of a growing level of engagement in politics in Asia, including more prominent protests in countries “ranging from supposedly apathetic Singapore through to more active democracies, such as India and Taiwan”. “In Singapore, this shift has been enough to lift the country from the status of hybrid regime to flawed democracy,” the report added.

In response, a Singapore Ministry of Foreign Affairs spokesman said: “This index is based on a rigid, ideological position that ignores the fact that democratic governments around the world take different forms, depending on their particular history and national conditions. Singapore is a fully democratic state that pragmatically pursues policies to maximise the social and economic outcomes for our citizens.”

The index considers hybrid regimes as countries with substantial election irregularities that often prevent them from being free and fair. They also tend to see government pressure on opposition parties and candidates and “serious weaknesses” in political culture and civil society, among other factors.

The EIU said the index, a snapshot on the state of democracy worldwide, was based on ratings for 60 indicators grouped into five categories: Electoral process and pluralism, civil liberties, the functioning of government, political participation and political culture.

Based on scores within the five categories, rankings are then assigned according to four types of regimes: Full democracies (8 to 10), flawed democracies (6 to 7.9), hybrid regimes (4 to 5.9), and authoritarian regimes (below 4).

Malaysia and Singapore share their category with 51 other countries. Twenty-four nations were categorised as full democracies, 39 as hybrid regimes and 52 as authoritarian regimes. Agencies

Wednesday, 5 November 2014

Harga rokok naik lagi mulai esok

Kenaikan harga rokok kali ini adalah susulan kenaikan duti eksais oleh kerajaan pada 1 November 2014. – Gambar fail Reuters, 4 November, 2014.  
Harga rokok naik sebanyak RM1.50 mulai esok, 5 November 2014. Antara jenama rokok tersebut adalah Dunhill, Kent, Benson & Hedges, Lucky Strikes, Pall Mall, Rothmans dan Peter Stuyvesant, sebagaimana kenyataan yang dikeluarkan hari ini.

Menurut kenyataan yang dikeluarkan oleh Commercial Marketers and Distributors Sdn. Bhd, kenaikan ini adalah susulan kenaikan duti eksais oleh kerajaan pada 1 November 2014.

British American Tobacco Malaysia (BAT) sebelum ini mengumumkan harga rokok keluaran mereka dikekalkan pada harga lama selepas kenaikan sebanyak RM1 pada 8 September 2014.

Langkah itu diambil bagi memastikan syarikat berkenaan mampu bersaing dengan pengeluar lain.

Selain itu, pada 30 September tahun lalu juga menyaksikan kenaikan harga rokok setiap pek adalah sebanyak RM1.50 dan merupakan kenaikan tunggal terbesar dalam sejarah. – 4 November, 2014.

- See more at: http://www.themalaysianinsider.com/bahasa/article/harga-rokok-naik-lagi-mulai-esok#sthash.6pKtI9hz.dpuf

Saturday, 18 October 2014

Malaysia 19 years behind South Korea, complacency, graft among culprits

Forbes discusses how Malaysia should compare it with the best economies in the region instead of the weaker ones at the Asli conference in Kuala Lumpur today. - The Malaysian Insider pic by Nazir Sufari, October 17, 2014.Malaysia are 19 years behind South Korea in terms of productivity, the Malaysian International Chamber of Commerce and Industry said today, naming graft, leakages, complacency and archaic labour laws as road blocks.

Its executive director Stewart Forbes said Malaysia's Gross Domestic Product (GDP) per worker productivity last year was equivalent to South Korea's - but in 1995.

"Malaysia's historic productivity growth was unimpressive although at one time, Malaysia, South Korea and Taiwan all started out on the same level playing field.

"Putrajaya is always quick to point out that Malaysia is better than Thailand or Vietnam or Indonesia. But why is Malaysia choosing the worst to make comparisons?

"Putrajaya ought to be comparing Malaysia to Taiwan, Singapore or South Korea. They should set the bar higher when making comparisons," Forbes said.

He was speaking at a discussion "Budget 2015: Balancing Growth, Fiscal Sustainability and Rising Cost of Living", organised by the Asian Strategy & Leadership Institute (Asli) in Kuala Lumpur today.

"Complacency is never far away and comparing yourself to the worst countries instead of to the best will only make people rest on their laurels instead of striving for more."

Ramon Navaratnam was the moderator of the Asli conference in Kuala Lumpur today. - The Malaysian Insider pic by Nazir Sufari, October 17, 2014.Moderator Tan Sri Dr Ramon V. Navaratnam agreed with Forbes, saying Malaysians had lost the fire which helped the country reach its current level since independence.

Ramon, the Centre for Public Policy Studies chairman, said a lack of meritocracy had played a role in Malaysians losing the edge in terms of productivity.

"Companies which hire foreign workers have claimed that Malaysians are too demanding, including wanting weekends off and higher pay," Ramon said.

Forbes warned against creating a dependence on the 1Malaysia People's Aid (BR1M) handouts, saying it would undermine capacity building.

"Putrajaya must take steps to ensure that BR1M does not become something which is expected rather than an assistance," Forbes said.

"While the handouts for the lower income groups will help, the introduction of GST next year and subsidy rollbacks will increase cost of living."

Forbes praised Putrajaya over Budget 2015, noting that the government would earn more revenue from the Goods and Services Tax, continued investment and trade.

However, he also noted that Putrajaya would earn less revenue through direct taxation due to decreases in the individual and corporate tax rates.

"Putrajaya will also be spending a fair amount of money in giving out BR1M handouts," he said, adding continued leakages would also cost the government money.

"Malaysia loses at least RM1.5 to RM2 billion due to smuggling activities including contraband alcohol, cigarettes and fuel," he said, adding this did not include corruption and wastage.

Forbes also noted that the Budget 2015 expenditure was still focused on operational rather than development, and said corruption and productivity issues had yet to be addressed.

"Putrajaya also needs to focus on amending labour laws in Malaysia as they are quite archaic and hark back to post-independence days.

"A balance needs to be struck in Malaysia's labour laws to bring it in line with the 21st century. Changes need to be made to bring it up to date," he said. – October 17, 2014.

- See more at: http://www.themalaysianinsider.com/malaysia/article/malaysia-19-years-behind-south-korea-complacency-graft-among-culprits#sthash.Rtp4n6t0.dpuf

Monday, 29 September 2014

Malaysia To Host Economic Roundtable In Vienna


Datuk Selwyn Das
From Caroline Jackson

VIENNA, Sept 28 (Bernama) -- Malaysia will host an economic roundtable here on October 9 to promote the country's investment and trade opportunities, says Malaysian Ambassador to Austria Datuk Selwyn Das.

Selwyn, who is also the Permanent Representative to the United Nations (UN) in Vienna, said Malaysia and Austria not only enjoyed excellent diplomatic ties but the country was also considered a good investment destination.

He said the event would be jointly organised by the Malaysia External Trade Development Corporation office in Frankfurt and the Malaysian embassy here.

"Since our embassy was established in 1962, we have enjoyed very good relations with Austria and this was evident by Austrian President Heinz Fischer's visit to Malaysia in 2010.

"When I presented my credentials to him last October, he still remembered Malaysia very fondly," he told Bernama.

Given that Vienna was one of the UN's four headquarters cities, including the base for international organisations such as the UN Office on Drugs and Crime and International Atomic Energy Agency (IAEA), he said both countries have collaborated on many international issues.

"We follow and monitor issues closely and protect our national interests, for example the resolutions passed at the just-concluded IAEA scientific forum here that can benefit us," he said, adding that the country's focus at present was on trade, tourism and education.

In terms of bilateral trade, Selwyn said last year Malaysia recorded a 4.6 per cent increase in trade with Austria valued at RM1,553.3 million.

Malaysian exports to Austria comprised electric and electronic products, optical and scientific equipment, machinery, metal products, appliances and parts, chemical and chemical products.

Austria imported electrical and electronic products, machinery, appliance and parts, chemical and chemical products, paper and pulp products and scientific equipment from Malaysia, he said.

He said there were many Austrian companies operating in Malaysia such as Vamed, which built the National Heart Institute in Kuala Lumpur and other private hospitals, and they were also active in the high-technology and construction industries.

The Malaysian embassy here is also promoting linkages with Austrian and Malaysian universities besides looking at the possibility of collaboration in healthcare and exchange of expertise to improve health care services in Malaysia, he said.

"As for tourism, more Austrians are interested in Asian culture and we received good response from them during our National Day celebration on Sept 9.

"We served Malaysian cuisine like "rendang" and "satay," he said, adding that about 13,000 Austrians visited Malaysia annually.

At present, about 300 Malaysians are residing in Austria, including 100 who are working mostly with international corporations.

Selwyn said Austria had also expressed its support for Malaysia, which was in a good position to secure a non-permanent seat in the UN Security Council for the 2015-2016 term.

Tuesday, 24 December 2013

Price Of Rice Cheaper In Singapore?

Latest I heard there are rumours that the Prime Minister will be "asked" to retire by March of 2014. (Err I usually hang out with pro BN, pro UMNO types ok. This is our side talking.) Who will replace him is also being discussed. 
I dont know if this will really happen or not but it shows the desperation that a very large number of pro UMNO people feel. They really want the PM to go. Someone should start a public signature campaign to see how many people want to see the PM go.
Anyway when the petrol price went up in September 2013, the Minister of Domestic Trade said the following :
Tue, 03 Sep 2013 

  • Domestic Trade Minister Hasan Malek said this quoting a study done by the ministry on the effect of the fuel price increase, the New Straits Times reported.
  • Food prices to go up only by 0.1% following the 20-sen hike in RON95  
  • Hasan told traders not to raise food prices, adding the fuel price hike was unlikely to affect food production costs.
  • "..we see no reason for them to mark up food prices as a result of the rise in fuel costs," he added.
  • Najib announced yesterday a 20-sen hike in RON95 petrol and diesel prices
  • new prices will save government at least RM1.1 billion this year
It is pretty tiring to keep saying again and again how simple the Cabinet Ministers are. I mean this is a Minister. He honestly felt that :
  • fuel price unlikely to affect food production costs
  • no reason to mark up food prices
What about the impact of higher tolls, higher cukai pintu, higher electricity tariffs, higher taxes, higher everything on food prices? Does the gomen feel that despite all these increases the food prices will not go up also? How is that possible?  Everything will go up - not just food prices. Sewa akan naik, harga kain akan naik, harga baju akan naik. Everything will go up.
I have said this many times : this is the Proton School of Management again. These people obviously think that "Buy high sell low" (beli mahal jual murah) is a good thing to do. (It is 'buy low sell high' ok)

That is what the Minister is saying. He said that it is ok for the food producers and food sellers to suffer higher costs. But they must still keep their selling prices low. 
He said the fuel hike will cause only 0.1% increase in food prices? How could the Minister have been so precise? Why not 0.05% or 0.2%?  
This is also why the people have almost completely lost trust in the gomen. The gomen talks rubbish. They even tell lies. 
Yesterday another pro UMNO person with whom I had a conversation for the first time said the gomen is "sneaky".  A good example is "Tengku" Adnan's statement that the DBKL is reducing the assessment rates from 6% to 4%.  Well thank you Babuji. But this is coming after a hailstorm of protest against the doubling and tripling of the assessment values. 
For example if you paid 6% before on a property assessed at RM8000 that works out to RM480. Now if the assessment for the same property has been increased to RM21,000 and you pay 4% that works out to RM840. That is actually a 75% increase in the amount you are paying. So the gomen is being sneaky. They say they have lowered the assessment rate but they have more than doubled the assessment values.  And  Babuji thinks he is being very clever and fair at the same time. 
A friend who is in the restaurant business gave me the following price increases of food items over the past few months (three to six months) :

Udang (medium sized) RM16 /kg to RM25.00 - 27.00 /kg  (56% increase)
Ikan Kembong RM 4.50 - 6.00 /kg  to RM10.00 /kg (122% increase)
Ikan Selar ? RM5 /kg to RM15 /kg (200% increase)
Cili padi RM4.50 /kg to RM9.90 /kg (120% increase)
Daun Ketumbar RM 8 /kg to RM 16/kg (100% increase) 
Chicken RM6++ /kg to RM 9++ /kg (50% increase)
Sayur Sawi  RM1.50 /kg  to RM6 /kg (300% increase)
Imported Indian Beef RM9 /kg to RM13.30 /kg (47% increase) 


I can vouch that in the jewellery business the workmanship charges or "upah" have increased 100% - 170% from June this year. 

A pair of simple earrings suffered 'workmanship charges' of RM3.00 a pair. They now cost us RM8.00 a pair - a 167% jump.  Workmanship charges for a simple gold ring used to be RM5 a piece. Now we pay RM10.00 - a 100% increase.   Surely we have to pass this on to the consumer in terms of higher prices, with a profit added on top. We are not the Jabatan Kebajikan Masyarakat. We have to make a profit.  So all prices are going up.

Then I did some searching on the Net and found this. These are prices of rice in Malaysia and Singapore.
Singapore rice prices


Malaysia rice prices

For easier reading,  here is a tabulation (in Ringgit Malaysia) :

Singapore Rice Prices : 
Jasmine Fragrant Rice 5kg                            = RM20.00
Thai Fragrant Rice 5kg                                  = RM24.08
Golden Phoenix Thai Fragrant Rice 5kg          = RM33.10

Malaysia Rice Prices :
Bird of Paradise AAA Thai Fragrant 5kg          = RM35.00 
Cap Udang AAA Thai Fragrant 5kg                 = RM37.00
Cap Udang Thai Wangi AAA 5kg                    = RM22.00

The same type of rice seems to be cheaper in Singapore than in Malaysia.
And here is the price increase for a 10kg bag of AAA Jasmine Fragrant rice in Malaysia from Jan 2012 until 27 Nov. 2013.  



As you can see the price has increased by 15% from Jan 2012 to Nov 2013.  
And here is some comparison with Australia. Super High Grade Basmathi Rice (5kg) sells for RM46 – RM48 here in Malaysia. 
In Australia the same Super High Grade Basmathi (10kg bag) sells for A$23.02 (or RM69 for 10 kg). That is only RM34.50 for 5 kg. How come Basmathi rice is 33% cheaper in Australia than in Malaysia? How come rice is cheaper in Singapore than in Malaysia?
So not only are prices going up but we are paying more than consumers in other countries like Singapore and Australia for basic food items. 
Why is this so? Well for starters an ex Minister controls the APs for the import of all beef cows into the country.  So the ex Minister makes his cut. Another tycoon controls the rice business in Malaysia. Again through monopolies, APs and I dont know what other artificial barriers which profits these tycoons first.
We the consumers pay through the nose. 
Now for those of you dunggus who think that it is ok for Malaysians to pay among the highest car prices in the whole world will you also say now that it is ok for your wife to pay higher prices for rice and food at the supermarkets (compared to consumers in other countries)? It is the same thing lah dunggu. 
Paying higher prices (than world market prices) for food items is just as bad as paying higher prices for cars (compared to world market prices).  
There are certainly many things wrong with the way things are structured in this country that is making our people poorer.  
Dan siapa yang akan miskin dulu? Melayu ke, Islam ke, China ke, India ke? It is the Melayu and the Muslims who are hit the hardest. Because the vast majority of them are fixed income, monthly wage earners. "Gaji bulan" secupak takkan jadi segantang. In the Civil Service alone there are 1.4 million of them. So these are the people who are being impoverished first.
The same friend at the restaurant has a computerised Point Of Sale system that tells him all sorts of information. He says that last year the average 'ticket' at his restaurant was RM14.00. This year, especially after July this year, the average ticket has shrunk to RM9.00 - a 35% drop in purchasing power. The vast majority of his customers are Malays. 
Jadi siapa kaya dulu? Orang yang pegang AP, orang yang pegang monopoli semua jadi kaya dulu. Orang biasa pula jadi miskin.   The 'Islamic banks' are cheating the Muslims of their money under the falsehood that it is Islamic. Orang Islam jadi miskin lagi.
Kiri, kanan, depan, belakang orang Melayu dan Islam jadi miskin dulu. 

Friday, 20 December 2013

Tighten your belt in 2014, say economists


Middle to lower income groups will likely face more financial distress next year in the wake of the simultaneous price hike of electricity tariff, toll, public transportation and fuel.

PETALING JAYA: 2014 will be a bleak financial year for Malaysians as they face an increase in toll prices, electricity tariff rates, public transportation and possibly even further fuel subsidy cuts.

This will only mean two things: higher inflation and less money in pockets for consumers to spend, economists confirmed today.

“Consumers will have to brace themselves for rising cost of living as the price hike started with the fuel subsidy cut, followed by the complete abolishment of the sugar subsidy,” Lee Heng Guie, CIMB’s chief economist, told FMT.

“Going into 2014, we have higher electricity tariff, toll rates, and there could be other forms, including rising fuel costs. This will definitely put pressure on inflation and the result is inflation has moved to 2.0 percent in October, to next year where we are looking at 3 percent.”

He said the lower income group – those households earning below RM3,000 – would be hit the hardest, and the BR1M cash vouchers would only provide partial relief to the poor.

“BR1M would not offset the rising prices 100%. To do that would only worsen the budget deficit and incur more expenses for the government,” said Lee.

Dr Yeah Kim Leng, group chief economist of RAM holdings, said the lower and middle income groups would likely face more financial distress and an increase in household debt starting from next year, and this would in turn incur social repercussions as individuals took on extra jobs to manage the higher cost of living.

He also warned Malaysians to expect two or three more subsidy fuel cuts from this year and 2016, and said a rise in water tariff was not off the cards, either.

“Our subsidy cut for fuel is still not finished because there is still a gap between our price and the world price that would be closed. We still expect further subsidy cuts, and is likely to be spaced between now and 2016.

“But once it goes beyond 2017, that would be too close for the general election, and the government would want to be in the good books ofall,” Dr Yeah quipped.

Not all is bad

But not all is doom and gloom: he said that the economic situation was still “manageable” and employers next year would likely be pressured to increase wages in light of the inflation and rise in cost of living.

“The national average income is rising by five to six percent every year. But of course it depends on the profitability of the firm, the different skill categories of the employees, and to what extent the lower income group is receiving higher income.

Dr Yeah added that it was unlikely Malaysia would see an increase in unemployment and poverty levels next year, as the country’s export economy was thriving and expected to improve.

“We haven’t seen any increase in corporate distress that would suggest workers will be retrenched and business will be cut down.

“We don’t see any unanticipated shock (to the economy), unless the world economy experiences another escalation. So I think we should not be unduly alarmed,” he assured.

But both Dr Yeah and Lee said it would have been better for the government to stagger out the price adjustments so as to avoid a price spiral.

Instead, Malaysians have been bombarded the past few weeks with announcements that toll hikes, LRT and monorail price surges were “unavoidable”; while the surge in electricity tariff came hot in the heels of fuel cuts and the abolishment of sugar subsidy.

Lee said the reason the government had chosen to suddenly introduce the price increases in one go was likely because it had been long delayed by the general election.

“So now that the election is over, fiscal reform is back on the table and the government needs to manage the budget deficit. It’s all just unfortunate timing,” said Lee.

But Dr Yeah said that the toll hike could have been placed on the backburner, given the already high price pressure.

“We are against the toll hike, we believe that the concessionaires which are profiting from the tolls should postpone the increase, or forego it altogether.

“Quite a number of concessionaires of reasonable ground to hold back the toll hike, and this could help reduce price pressure,” he said.

But he stressed that as long as people’s income increased the same rate as the inflation, interest rates remained stable and there was full employment, Malaysian households would be able to cope with the financial difficulties that await them in 2014.

Wednesday, 30 October 2013

Azmin: M’sia negara berhutang paling tinggi di Asia Tenggara


Disiplin fiskal yang lemah menyebabkan hutang negara terus meningkat daripada 36% KDNK pada tahun 1998 kepada 54.7% (jangkaan) pada tahun 2014.
UPDATED

KUALA LUMPUR: Bajet 2014 dilihat masih kekal sebagai bajet defisit, 16 tahun berturut – turut semenjak krisis kewangan Asia berlaku ekoran amalan dan pelaksanaan dasar fikal ekonomi.

Ahli Parlimen Gombak Azmin Ali berkata, disiplin fiskal yang lemah menyebabkan hutang negara terus meningkat daripada 36% Keluaran Dalam Negara Kasar (KDNK) pada tahun 1998 kepada 54.7% (jangkaan) pada tahun 2014.

Ini berdasarkan laporan Maybank Berhad bahawa hutang negara bagi tahun 2013 dijangka meningkat kepada RM 541.3 bilion dan akan terus meningkat kepada RM 578.4 bilion iaitu 54.7% daripada jumlah KDNK.

” Ini adalah rekod yang tertinggi di Asia Tenggara,” katanya semasa ucapan perbahasan Bajet 2014 dalam Dewan Rakyat hari ini.

Katanya, dalam tempoh 56 tahun negara mencapai kemerdekaan, Malaysia mengalami defisit fiskal selama 49 tahun dan hanya menikmati lebihan kewangan selama 5 tahun berturut-turut (tahun 1993-1998), iaitu ketika Ketua Pembangkang Datuk Seri Anwar Ibrahim menajdi Menteri Kewangan.

“Negara hari ini tidak mempunyai ‘fiscal space’ untuk berbelanja kerana hutang negara yang terlalu besar dan ianya juga tidak mempunyai ‘political will’ untuk memerangi rasuah dan menangani masalah ketirisan dan salahguna kuasa,” katanya.

Menyentuh mengenai cukai barangan dan perkhidmatan (GST), Timbalan Presiden PKR itu berkata, pihaknya menyokong sistem percukaian yang dilihatnya telus sekaligus mampu mengurangkan kebergantungan pendapatan daripada hasil sumber petroleum dan gas.

Malah GST juga dilihatnya boleh menjadi satu rangsangan kepada rakyat untuk meningkatkan simpanan serta tidak boros dalam berbelanja.

Bagaimanapun, tegasnya rakyat Malaysia hari ini masih belum bersedia untuk perlaksanaan GSTkerana lebih 40% rakyat berpendapatan isi rumah kurang daripada RM 2,500 sebulan; 80% daripadanya adalah orang Melayu dan Bumiputera.

Hal ini menurut Azmin bertambah serius apabila Bajet 2014 memotong RM 7.29 bilion jumlah subsidi kepada rakyat yang akan menyebabkan kos produktiviti meningkat dan kuasa membeli atau ‘purchasing power’ rakyat semakin lemah (inflasi).

“Persoalannya adakah kerajaan telah meneliti impak sosio ekonomi rakyat dengan perlaksanaan GST dan pemotongan subsidi rakyat?

“Penganalisis ekonomi mengunjurkan tahap inflasi akan meningkat sebanyak 2% apabila GST dilaksanakan.

“Jika perlaksanaan GST ini konsisten dengan langkah pemotongan subsidi yang diumumkan, maka dijangkakan kadar inflasi akan terus meningkat sehingga kadar 5% pada tahun 2015,” katanya.

Sementara itu, katanya langkah kerajaan menarik balik RM 551.25 juta subsidi gula dan subsidi minyak masak bernilai RM 505.4 juta akan terus membebankan rakyat.

“Kerajaan wajar memberikan perhatian di atas tuntutan Pakatan Rakyat supaya memecahkan monopoli industri gula.

“Belanjawan negara bukan sekadar bertujuan untuk meningkatkan hasil negara tetapi menguruskan perbelanjaan secara berhemah dan mengambil langkah proaktif untuk membanteras ketirisan dan amalan rasuah,” katanya.

Sementara itu Bernama melaporkan Timbalan Presiden PKR Azmin Ali menegaskan pakatan pembangkang tidak pernah menolak pelaksanaan Cukai Barangan dan Perkhidmatan (GST) yang mahu dilaksanakan kerajaan.

Nada

Berbeza nada dengan rakan seperjuangannya yang lain termasuk Ketua Pembangkang Datuk Seri Anwar Ibrahim, Azmin berkata pendirian pembangkang adalah GST merupakan satu sistem percukaian yang cukup telus, efisien dan dalam jangka masa panjang mampu memberi kebaikan kepada sistem ekonomi negara.

Bagaimanapun menurut anggota Parlimen Gombak itu, Malaysia dilihat masih belum bersedia untuk melaksanakan cukai baharu itu kerana lebih 40 peratus rakyat mempunyai pendapatan isi rumah kurang daripada RM2,500 sebulan dengan 80 peratus daripadanya adalah orang Melayu dan Bumiputera.

“Sudah pasti, jika dilaksanakan GST akan menekan golongan dalam kelompok berpendapatan rendah dan rakyat miskin,” katanya ketika membahaskan Rang Undang-Undang Perbekalan 2014 di Dewan Rakyat di sini, hari ini.

Beliau berkata dalam pelaksanaan sistem percukaian itu, perhatian tidak sewajarnya diberi kepada golongan miskin tegar samata-mata, tetapi juga kepada golongan yang mempunyai bebanan hutang yang tinggi termasuk pekerja muda, pasangan yang baharu berkahwin dan juga mereka yang mempunyai tanggungan yang ramai.

Hutang

Malah, katanya, FOMCA melaporkan sejumlah 47 peratus pekerja muda di negara ini dibebani jumlah hutang yang begitu serius, manakala Kajian Pusat Pendidikan dan Penyelidikan Pengguna menyatakan lebih 30 peratus daripada gaji golongan muda digunakan untuk membayar hutang sekaligus mengesahkan beban dan kesempitan hidup generasi muda dan rakyat secara keseluruhannya.

Azmin turut menyarankan satu reformasi sistem percukaian yang bersifat meluas dan komprehensif digubal segera bagi menggantikan Cukai Jualan dan Perkhidmatan (SST) yang menyumbang tujuh peratus kepada pendapatan negara.

Azmin dalam hujahnya berkata dalam pelaksanaan GST, kerajaan perlu memperbetul falsafah dan matlamatnya agar menjurus kepada menjadi satu rangsangan kepada rakyat untuk meningkatkan simpanan serta tidak boros berbelanja.

“Pendek kata, GST bertujuan untuk mengagihkan semula atau mempelbagai, dan bukan meningkatkan bebanan cukai…bukannya berobjektifkan memperoleh pendapatan RM27 bilion,” katanya.

Katanya kerajaan perlu belajar daripada negara maju di mana negara terbabit hanya mula melaksanakan GST selepas infrastruktur cukai sudah kukuh di samping kadar cukai pendapatan juga turut dikurangkan bagi memastikan rakyat tidak terbeban.

Saturday, 5 October 2013

Najib’s policy of spend and be damned


The auditor-general’s report simply confirms that the Prime Minister is not interested in stemming all the embezzlement from the treasury
COMMENT

When someone steals from you, it becomes a personal matter. It is of little consequence if the theft involves a small sum of money or larger amounts because your reaction is the same; you feel cheated, you want retribution, you seek justice and you demand the return of your money.

A few days ago, many people were alarmed by the 2012 Auditor-General’s report. Contrary to public opinion, the report is not about wastage. It is about theft which has been perpetuated by corrupt politicians and civil servants.

True, some of the money was probably wasted; but the bulk of the money went into the back-pockets of these men and women, who acted in tandem with unscrupulous traders. That money belongs to you.

Malaysia has charlatans and clowns, masquerading as politicians and civil servants. Putrajaya is notorious for its centralised control, and Umno Baru keeps many key civil servants under their yoke.

The 47% of the rakyat who voted BN at GE13, are devoted disciples of the party. They are in denial or are too dopey to accept that BN means a ‘Bankrupt Nation’ or ‘Barang Naik’. They keep springing to the defence of BN politicians and irresponsible civil servants, who steal from them, and who lack any accountability for their actions.

If the stolen money could be recovered, our youth might be able to receive free higher education, our senior citizens could benefit from free and improved health care, we might enjoy an efficient public transport system, or go about our business without fear of being victims of crime.

When BN politicians and civil servants stole from the public to enrich themselves, they left a huge dent in the nation’s finances. When Najib Tun Razak spent his way into GE13, he effectively emptied the treasury.

Let us consider some of the issues in the audit that BN loyalists have ignored. IGP Khalid Abu Bakar shot himself in the foot with his flippant response that the missing weapons had “fallen into the sea”.

Perhaps, the loss of 156 pairs of handcuffs and 29 vehicles by the police, costing taxpayers a staggering RM1.33 million had fallen off the back of a lorry?

The Department of Broadcasting had purchased 20 wall clocks for several RTM branches. Each clock cost RM3,810, although each one had an estimated value of RM100. Despite the expensive clocks, many civil servants are still working to Malaysian Rubber Time.

The audit created a side-show when a public spat erupted between Youth Minister Khairy Jamaluddin and Communications minister Shabery Cheek, over the funding for a K-Pop concert, held last year.

Shabery said the money had come from sponsors, but Khairy contradicted him and said that his ministry picked up the tab when the sponsors withdrew from the deal. Who is lying – the Auditor–General, Khairy or Shabery?

Naturally, for a concert of this magnitude, contracts would have been signed, with severe penalties for breaching the terms of the agreement. It is highly likely that if a crony company had been involved, only a loose, non-binding verbal arrangement would suffice between friends. Could this explain why there were no consequences, when the sponsors withdrew?

Najib’s split personality

We would lose our homes, or cars, if we defaulted on our mortgage or hire-purchase payments. You don’t need to go to Oxford University to know about contracts and binding agreements. You only need common sense and good moral values to know that you have to be responsible with taxpayer’s money.

In the last few days, President Obama cancelled his trip to Asia because his government had limited funds from the US shutdown.

If there was no money, why wasn’t the vulgar K-pop concert, which we know was only a crowd-puller to make people vote BN in GE13, cancelled?

Last week, Najib told an audience in San Francisco that his aim was to consign corruption to Malaysia’s past. Najib often makes this type of announcement whilst overseas, but he knows that no one at home believes him when he talks about moderation, corruption and transformation.

Three years ago, he told the UN that he practised moderation and that extremists had no place in Malaysia. Najib is someone who has a split personality. He delivers two messages; one for the international community and another for the hardliners at home.

On Malaysian soil, he panders to the nationalists and has another storyline for the non-Malays.

Prior to GE13, Najib announced that he was going to repeal the ISA in a move that he knew would appeal to younger Malaysians and activists. Ealier this week, he reversed that decision when the Prevention of Crime Act (PCA) was bulldozed through parliament.

Critics claim that he is preparing for GE14 and that activists and opposition politicians will be detained to prevent them from scuppering Umno Baru’s chances.

Najib tried to impress the crowd by saying that the Malaysian Anti-Corruption Commission (MACC) would “…serve as an example for other countries looking to build the institutional capacity to combat corruption.”

Malaysians know better. Corrupt politicians and civil servants are safe in the knowledge that the MACC is a toothless tiger, which will purr when they tickle its neck.

Najib’s speech was littered with phrases like “…we deliver what we have promised to the people…”, “…a concerted fight against corruption…”, “…deliver consistently over time…”, ”…an open and transparent business environment…” or “…the ability of governments to change things for the better…”. His speech writers have made him a figure of mockery and derision.

Be wary of Umno Baru

Najib had the audacity to say that corruption “crushed individual endeavour and harmed social cohesion”. His crowning glory was to say, “If we do not give all of our citizens a stake in our region’s future, we risk encouraging ethnic tensions, religious extremism and political instability.”

Even Najib must have sensed the irony in his words because Umno Baru seems to do little other than stir-up racial tension to try to divide the rakyat.

The auditor-general’s report confirms that Najib is not interested in stemming the theft from the treasury.

He got us into the mess in the first place, but he and his co-conspirators are laughing all the way to the bank while you dig deeper into your pockets.

In GE13, 53% of the rakyat voted for change and dreamt of a harmonious, tolerant and crime-free society, but they were thwarted. Tragedy will surely befall the nation if the 47% of the electorate who voted for BN in GE13, repeat their folly in GE14.

Mariam Mokhtar is a FMT columnist.

Vast Economic Opportunities Await Malaysia And China - Agong

KUALA LUMPUR, Oct 4 (Bernama) -- Vast economic opportunities await to be explored and exploited by investors and entrepreneurs from Malaysia and China, said the Yang di-Pertuan Agong Tuanku Abdul Halim Mu'adzam Shah.

His Majesty said he was confident that Malaysian and Chinese business communities would continue to strengthen their ties and take advantage of economic opportunities created by both governments.

Speaking at a state banquet in honour of China's President Xi Jinping, who is on a state visit to Malaysia, at Istana Negara here on Friday night, the King said bilateral relations between the two countries had grown stronger with China becoming Malaysia's largest trading partner.

"Malaysia and China have always enjoyed close ties. The close relationship between the people of Malaysia and China is attributed to history, ethnic origin and cultural ties between the two countries.

"Our economy has grown in tandem and enhanced each other economic growth. Cooperation in the field of tourism, education, science and technology, and finance has expanded significantly," said the Yang di-Pertuan Agong.

Tuanku Abdul Halim was accompanied by the Raja Permaisuri Agong Tuanku Hajah Haminah while Xi was accompanied by his wife, Peng Liyuan.

Present were Prime Minister Datuk Seri Najib Tun Razak and his wife, Datin Seri Rosmah Mansor, and Deputy Prime Minister Tan Sri Muhyiddin Yassin and his wife, Puan Sri Norainee Abdul Rahman.

The Yang di-Pertuan Agong said the world today acknowledged the importance of China in regional and global affairs and its phenomenal economic success made it a great influence on global economy.

"China remains Asean's strong partner. It is very encouraging when China, under the leadership of His Excellency, strives to maintain good relations with countries in the region as reflected by your visit.

"Raja Permaisuri Agong and I are confident that close and mutually beneficial ties existing between China, under the stewardship of Your Excellency, and Malaysia will continue to be strengthened and broaden in years to come," said Tuanku Abdul Halim.

In his speech, Xi said China was ready to work with Malaysia for mutual benefit and common development.

"I believe that as long as both sides work together, our practical cooperation will bring greater benefits to our people and China-Malaysia relations will have a brighter future," he said.

He said next year would mark the 40th anniversary of China-Malaysia diplomatic ties and both countries were blessed with close cooperation and great common interest.

"Over the four decades, thanks to the concerted efforts of successive generations of leaders and the people of the two countries, our relationship has stood the test of time and the changing international landscape and demonstrated remarkable vitality.

"In the world of deepening globalisation and IT application, the destinies of China and Malaysia are getting increasingly interconnected. Our relationship is very important to both countries," he added.

Tuesday, 10 September 2013

Malaysia Invites UK Investment In High-Tech, High Value-Added, Knowledge-Based, Skills-Intensive Industries

From Abdul Aziz Harun

LONDON, Sept 9 (Bernama) -- Malaysia welcomes more investments from the United Kingdom, particularly in new growth areas in high technology, high value-added, knowledge-based and skills-intensive industries which provide high income jobs.

Deputy Prime Minister Tan Sri Muhyiddin Yassin said Malaysia now emphasised on talents, creativity and innovation, which would not be possible without inflow of new foreign direct investments.

He said Malaysia was adopting the ecosystem approach in promoting investments into the country, the approach which acknowledged that business models were continuously evolving and sophisticated business solutions often entailed a more complex and dynamic relationship of a wide range of activities.

"Given the strong level of the UK technological expertise and innovative culture, we believe there are many opportunities for investments by the UK companies, especially in a number of key sectors in which the UK is known to have already excelled, such as the aerospace industry, bio-manufacturing and pharmaceuticals, chemicals and the energy and environmental technologies," said Muhyiddin, who is here on a five-day working to the UK, when addressing the roundtable meeting with the UK captains of industries organised by the Malaysian High Commission office in the UK on Monday.

Officials from 24 UK companies attended the meeting, which Muhyiddin said was aimed to brief them on the opportunities, challenges and support available in Malaysia.

Also present were the Malaysian High Commissioner to the UK, Datuk Seri Zakaria Sulong, the UK Minister of State for Trade and Investment, Lord Stephen Green, and senior officials from companies such as the BAE Systems, BRE Global Ltd, Commonwealth Business School, HSBC, JCB and MATRADIS.

Muhyiddin said he was optimisted that the meeting would be able to strengthen the ongoing efforts to enhance business cross flows between the two countries, build upon the existing strong partnership and explore new areas of cooperation.

He said Malaysia was confident that its economy would remain resilient, underpinned by the comfortable level of reserves, strong domestic consumption, low unemployment rate and healthy inflows of foreign direct investments.

"The Malaysian economy expanded by 4.3 per cent in the second quarter of 2013 albeit moderate global growth. The overall growth performance was driven by resilient domestic demand, which cushioned the negative impact of the weak external environment," he said.

He said Malaysia's growth formula was premised upon a strong and effective partnership between the public and private sectors, with the government facilitating businesses by ensuring that procedures and regulations promote a business-friendly environment.

He pointed out that this partnership had made Malaysia cost-competitive and contributed to its ability to continue to attract foreign direct investments.

"To move the country forward, we have charted a very clear road map based on the strategies of the New Economic Model (NEM) and the Economic Transformation Programme (ETP) that will enable us to achieve our target of becoming a high-income nation by 2020," he said.

Muhyiddin said last year UK was Malaysia s 18th largest trading partner and the total trade stood at US$4.42 billion while the total trade for January-June period was US$2.29 billion.

He said the UK was ranked the 8th largest foreign investor in the manufacturing sector in Malaysia, with investments amounting to more than US$2 billion, and the major sectors of UK investments are in the chemical and chemical products, petrochemicals, electrical and electronics and non-metallic mineral products.

"We are proud to be the host for many of the prominent UK companies. Among the notable UK companies operating in Malaysia are Shell, Dyson Manufacturing, Tioxide, British Petroleum, Xyratex, Glaxo Smithkline and Ethylene, which have made substantial investments in Malaysia.

"We are excited to note that British Telecoms has recently expanded its operations in Malaysia by establishing its global shared facility, employing more than 600 high knowledge workers, he added.

Muhyiddin said the government was also increasingly liberalizing its services sector as this would be a key driver for growth; and services industries, adding that Malaysia was emerging as a strong leader, including in regional establishments, tourism, health services, Islamic finance, research and development activities, education, logistics and business services.

These can be avenues for enhancing bilateral investments further, he said.

Urging the UK companies to explore some of the opportunities highlighted, he said to date the government had liberalised 45 services sub-sectors which include tourism services, healthcare, education, business services and professional services.

He also said Malaysia was actively involved as the negotiating member of the Trans-Pacific Partnership (TPP) Agreement, a free trade area initiative involving New Zealand, Chile, Singapore, Brunei, Australia, Malaysia, Mexico, Peru, the United States, Vietnam, Canada and Japan.

"We have successfully conducted the 19th round of negotiations held on August 22nd and 30th, 2013 in Brunei. The TPP will provide business opportunities for UK companies to a seamless market with preferential access to a larger population regionally and globally, he said.

Muhyiddin ended his speech with an assurance that the Malaysian Government would continue to pursue pro-business, prudent and pragmatic policies in order to ensure Malaysia s investment climate remained attractive for businessmen to not only conduct their normal business activities but also expand and diversify their existing operations.

Tuesday, 19 March 2013

Malaysia Faces Capital Flight, Falling Trade Surplus


Our Correspondent
Our Correspondent
More things for voters to worry about
As the Malaysian election draw near, two worrying aspects of the country's economy are very much in evidence. They are just pointers but significant ones to a bumpy future.

This may seem a surprise to outsiders who are rightly impressed with the strength of the nation's external position - RM139 billion (US$44.36 billion) in foreign exchange reserves and a record of huge annual current account surpluses dating back to 1998. Monetary policy is restrained and inflation is low.

But signs of concern are not just to be found in data but in anecdotes of behavior. One such anecdote that recently came to light courtesy of a Vanity Fair magazine article on London property is that Malaysians have now joined the ranks of Russian oligarchs, Nigerian oil plunderers and the latest generation of Gulf sheiks in paying astronomical prices for houses and apartments in the classiest parts of London. It may be an indication that some of the country's richest citizens are voting with their money if not their feet in advance of what appears to be a very tight election.

According to estate agency Jones Lang & Wootton last year Malaysian buyers accounted for 17 percent of all buyers of new top-of-the-line central London dwellings. In other words almost as many Malaysian are buying as Britons, who accounted for only 19 percent of this market. Identifiable Malaysians figure as buyers of One Hyde Park, the most expensive new building in London overlooking Hyde Park and others probably lie behind the various anonymous offshore companies which figure as owners of most of the owners of apartments ranging in price from US$12 million to US$50 million.

It is hard to imagine that these are safe investments compared with Malaysia, given that the market is thin, the properties are often left unoccupied and that further price gains must rely on yet more flood tides of easily gotten wealth. Such floods have always been associated with commodity booms or banker banquets. London property has long been a destination for flight capital and bankers absurd bonuses, one.

But what does the Malaysian role now tell us about flight capital from an outwardly stable nation? And about the prospects for the commodity price boom of the past 10 years not coming to an unpleasant end?

That takes us away from London anecdote to actual data out of Malaysia itself. January saw Malaysia's trade surplus sink to RM3.3 billion, less than half that of the same month a year ago. Of course one should not read much into one month's figures but a downward trend evident in 2012 looks to be gaining momentum. Then total exports rose only 0.9 percent while imports rose 5.9 percent and the overall surplus fell from RM 124 billion to RM94 billion.

The worrying aspect is not imports, which need to be rising if capital spending is doing so but the trend in exports prices. Palm oil was down 27 percent, gas down 6 percent and rubber down 19 percent. These may have further to fall and continue the reversal of the huge terms of trade gains made over the previous decade.

Of itself this need not be a worry but for the other aspects of the external account. The services account has always been in the red and is no particular cause for concern. Tourism is strong and the Islamic financial sector too. The RM64 billion deficits last on combined services, transfers and investment income is growing but should be quite manageable even if the trade surplus slides further.

There are more worrying issues given the likelihood that gas and palm oil prices at least are looking at a sustained downturn as new projects come on stream globally and China's demand for resources slows as the economy shifts emphasis.

One is that direct investment outflow is now almost twice foreign direct investment - RM51 billion against RM29. Some of this is doubtless one-off as Petronas has invested heavily in foreign oil and gas projects as its own profits have boomed and Malaysian banks have been buying overseas, especially in Indonesia. But there must be questions about the likely rates of return on much of this capital.

An even bigger question is how much has been squandered in lesser known ventures, particularly by politically connected and government linked- companies with scant accountability to shareholders. Some too is likely to be flight non-Malay flight capital preferring expensive but seemingly secure assets in Australia, the US or even London to the higher returns which ought to be available in younger, faster growing Malaysia.

Recorded portfolio investment still shows a plus - inflow of RM59 billion against outflow of RM36 billion in 2012. But the country has failed to regain the favor it once had with foreign fund managers and despite its growth record and strong currency the Malaysian stock market has lagged well behind most in developing Asia and emerging market generally. The main reason given, that local individual investors are bigger players than in many other markets. is that confidence in both short-term political stability and the longer term prospects for non-bumiputras is weak.

There is nothing new about the latter which is also reflected in the "errors and omissions" in balance of payments data. This is invariably a large negative number – RMB 33 billion in 2012. Again, on its own, it is not a sign of any particular worry.

Concern then focuses not on any one factor but the convergence of negative factors. The foreign exchange position is so strong for now that it would take a Black Swan event to create any sense of crisis in the foreseeable future. But the ability of the government to sustain economic growth with large budget deficits would certainly be threatened at a time when rural incomes and palm oil and gas profits were reducing both under pressure.

Malaysia is moving from a position where it could afford massive capital outflow, perhaps even welcome it as reducing domestic inflationary pressures, to one where outflow becomes a self-reinforcing problem of the interaction of politics and economic. As it is Malaysia's strength over recent years has been more due to the commodity cycle than to the investment in people and industries that can get it out of the "middle income trap" to high income status. The money has been there but not the other inputs.

For sure Malaysia remains an attractive investment opportunity given its good infrastructure and wage and other costs which are competitive given its level of skills and facilities. But so long as its own people prefer to look overseas for political reasons the nation's promise cannot be fulfilled.

Monday, 17 December 2012

To know the economy, ask the housewives

Many are venturing farther and farther from home in search of lower prices. — File pic

KUALA LUMPUR, Dec 16 ― Who knows better than the female half of a couple the ups and downs of the economy?

It may be that most husbands are the ones who bear the financial burden but it is the wives and mothers who feel the pinch before their spouses. They deal with school fees, groceries, maid salaries, and know instantly when the price of electricity shoots up.

The Malaysian Insider conducted an informal straw poll among acquaintances and friends whose ages range from 30 to 40, who are educated, and either work from home or have taken a sabbatical from work.

Budgeting is an on-going battle even though some come from upper middle-class families. Some are professionals or freelancers and stay-at-home mothers.

The first thing that came to mind was the quality and cost of education in the country. They all agreed that affordable education meant enrolling their children in government schools, but after-school activities and tuition can burn a hole in the wallet. There is always something to pay, and at what price when many of them feel the education system has slipped tremendously from their schooldays?

The property question

Most agree that property and the rising cost of education, as well as health, are out of control and “illogical.” Property prices are spiralling upwards, but there is a glut of residences and offices spaces all over Klang Valley and Selangor.

Vacant properties are abundant but these are only targeted at those in the higher income bracket.

Sazlin Daud, a one-time practising lawyer who is now a stay-at-home mother of two, commented that “We’re not talking just one to two developers in one to two areas, it’s everywhere, spreading its tentacles all across the Klang Valley!”

“How illogical is it that the only new landed properties available now within the suburbs are superlinks, semi-detached homes and bungalows with prices that start at above RM1.5 million? What happened to plain old terrace homes?

“And what is even more ridiculous is that existing landed properties, even run-down terrace homes in Subang Jaya can sell for RM700,000-800,000, in Bandar Utama for RM800,000-RM1 million and in Mutiara Damansara for RM1.2 million?”

Many agree that even older houses in need of repair are selling at RM700,000-800,000; similar homes in Bandar Utama are almost RM1 million. The current climate is not conducive for young couples with growing families. The question is, where will they be able to move when the children have grown up?

For some, renting property is the way to go. It is more affordable and practical. Yet this route has caused them some stress; renting is still stigmatised by many Asians.

The budget review

One reason why petrol expenses have shot up is because the wives will drive just about anywhere to score a bargain. It no longer makes sense to shop at a certain place “to be seen” because the price fluctuation is too obvious.

A wife whose husband earns a five-figure income watches the family grocery bills like a hawk. What does she think of grocery expenses in the Klang Valley?

“I think it’s schizophrenic. My son’s formula and baby products are cheaper at Ben’s in Publika, and the same ones cost more in Tesco. I don’t know if the ticketer ‘silap tampal’ the price tag!

“People think we have the money but I will not spend unnecessarily. I can tell you ― sometimes the pasar in Keramat is as expensive as the one in TTDI, and I have found reasonably-priced dragon fruit at the Mont Kiara Thursday night market. Selayang is okay… but we don’t eat that much fish or chicken in a week! I don’t know who sets the prices! Our economy is crazy-lah.”

For KP (pseudonym), the interview actually drove her to write down all the expenses her family incurs and she is shocked. A frugal homemaker, it was eye-opening to see what was being spent. Her notes reveal that she and her husband spend over RM1,000 for their three children, and the expenses go to their education and activities.

Her children wear hand-me-downs. She is looking for a Bahasa Malaysia tutor but is intimidated by the fees. Their personal expenses go to medication, sports and range about RM1,000. Because they have a 90-year-old relative living with them, they have had to invest in a properly-trained maid whose salary is RM1,000 a month.

It is an on-going battle among the two spouses, trying to cope with the costs of a growing family, medical expenses and also some treats in between. Both of them rarely indulge in personal luxuries, and their children are not treated lavishly.

Still, she wonders if there will be a limit to all this. Medication for her husband’s ailment is increasing; actually, everything is becoming more expensive. How long can they be frugal and deny themselves some luxuries?

The one constant battle she and her husband has is where they shop for groceries. She would rather go all the way to Tesco Puchong because there is more variety and it is cheaper. However, her husband would rather shop at Village Grocer, Bangsar Village, because it’s more convenient.

Let’s trade

So how do the mothers cut corners and yet enjoy some? Angelia Ong barters.

“For example, in exchange for your garden produce, whatever I make from it, I send it over or sell the excess. That works in terms of skills and teaching options too. Teach my kids Bahasa twice a week, I exchange for bread, babysitting, whatever. I find that the idea of community (not necessarily living in the exact same location) is coming back.”

And, yes, bartering groups have cropped up on Facebook and is not just a more affordable way of living, but has become a social activity. The Barter Exchange Group Malaysia is one.

The banter among the members reminds one of a country farm with neighbours popping by for a chat. It may sound strange to a consumerist society, but it makes sense to the members. And the members in the group range from professionals, stay-at-home parents, educators, to name a few.

Women hankering for branded goods at affordable prices also turn to informal Facebook groups, which have lead members based in the US or Europe, who buy their goods during sales and then ship them back to Malaysia.

The difference is significant ― this cuts out the middleman and store overheads. These groups are also fashion savvy ― the customer will get the original and the latest trend if she so wants.

What do they think of the current economic climate?

They are very leery.

“The cost of living has skyrocketed but our incomes have not changed. Not good,” one working wife commented.

Monday, 10 December 2012

A second chance for bankrupts


Malaysia has one of the most stringent bankruptcy laws in the world, but a review may be in the offing.
According to the Malaysia Department of Insolvency, between 2005 and June 2012, a total of 243,823 people have been declared bankrupt in the country.
Shahanaaz Habib, The Star 
SAM, an engineer, met Ling when they were both studying in college. They dated for years and even made plans to get married.
When Ling bought a car, Sam stood as her guarantor. But Ling did not pay her monthly instalment and Sam ended up paying it for her. Then one day, to his horror, Sam found out that Ling was in fact engaged to someone else.
Heartbroken, he broke off all contact with her, changed jobs and moved to another state to get over her. But Ling continued her habit of not servicing her car loan till the bank finally repossessed her car and auctioned it off. Even then, there was still a shortfall of RM45,000.

Saturday, 1 December 2012

Perbandingan Pencapaian Pentadbiran Ekonomi Dato’ Seri Anwar Ibrahim: Rakyat Arif Membezakan Angka Ekonomi

by Anwar Ibrahim

Serangan Dato’ Sri Najib Tun Razak terhadap kredibiliti dan kemampuan Dato’ Seri Anwar Ibrahim mengemudi teraju ekonomi negara bukanlah perkara baru. Retorik yang sama turut digunakan menjelang Pilihanraya Umum ke-12 (PRU12) dalam tahun 2008 bertujuan untuk menakut-nakutkan rakyat; kononnya negara akan muflis jika UMNO tidak diberikan kuasa untuk memerintah.

Pun begitu, dalam PRU12 rakyat tetap memilih KEADILAN dan rakan – rakan PAS dan DAP untuk mentadbir negeri-negeri terkaya di Malaysia seperti Selangor dan Pulau Pinang, selain Kelantan, Kedah dan Perak. Maknanya, rakyat yang matang tidak akan terpengaruh dengan propaganda politik UMNO – BN yang meremehkan keupayaan rakyat untuk menilai pencapaian ekonomi negara di bawah kepimpinan Dato’ Seri Anwar Ibrahim sebagai Menteri Kewangan. Sekali lagi saya yakin rakyat pastinya menolak politics of fear yang dibawa oleh Presiden UMNO.

Cara terbaik menilai keupayaan Dato’ Seri Anwar Ibrahim mentadbir ekonomi adalah dengan membandingkan angka-angka ekonomi seperti berikut:

Pertumbuhan ekonomi sepanjang Dato’ Seri Anwar Ibrahim menjadi Menteri Kewangan[1]
Tahun
1992
1993
1994
1995
1996
1997
% pertumbuhan[2]
8.8
9.9
9.2
9.8
10.0
7.3

Pertumbuhan ekonomi sepanjang Dato’ Seri Najib Tun Razak menjadi Menteri Kewangan[3]
Tahun
2009
2010
2011
% pertumbuhan[4]
(1.5)
7.2
5.1
Sejak menjadi Menteri Kewangan, pencapaian ekonomi Dato’ Seri Najib Tun Razak tidak pernah sekali pun mengatasi pencapaian Dato’ Seri Anwar Ibrahim. Tatkala Dato’ Seri Anwar berjaya memacu pertumbuhan ekonomi negara sehingga mencecah 9% – 10% dalam tempoh beliau menjadi Menteri Kewangan, Dato’ Seri Najib (2009) telah membawa ekonomi negara dari tahun pertama pentadbirannya ke arah sebaliknya dan menjurus ke arah ekonomi yang semakin gawat, sedangkan negara jiran seperti Indonesia kekal berkembang pesat.

Hakikatnya, rakyat Malaysia tidak buta angka dan arif membezakan pertumbuhan ekonomi sekitar 9% – 10% semasa Dato’ Seri Anwar Ibrahim mentadbir ekonomi negara, berbanding pertumbuhan yang lembap sekitar 4% – 5% sekarang, disamping pentadbiran Najib berdepan dengan pelbagai masalah ekonomi harian seperti kos sara hidup yang semakin tinggi.

Rekod ekonomi Dato’ Seri Anwar Ibrahim juga menunjukkan beliaulah Menteri Kewangan yang berjaya mencapai belanjawan lebihan. Selepas beliau, menteri-menteri kewangan UMNO mengambil pendekatan berhutang untuk menampung perbelanjaan negara yang boros dan tidak berhemah sedangkan hasil tidak bertambah. Justeru itu, Malaysia masih bergelut dengan masalah hutang/defisit yang meruncing sehingga kini.
Perbandingan angka berikut membuktikan kegagalan Dato’ Seri Najib Tun Razak sebagai Menteri Kewangan untuk mengatasi masalah hutang/defisit, walaupun ditinggalkan dalam keadaan yang cukup baik oleh Dato’ Seri Anwar Ibrahim:

Perbandingan defisit belanjawan dan jumlah hutang negara

Rethinking wage policy to reposition our economy ― Liew Chin Tong


NOV 28 ― Although the minimum wage law is scheduled to take effect in January 2013, the Barisan Nasional government does not seem to be particularly committed to re-imagine the Malaysian economy through wage policy reform. Efforts to smoothen the transition for small and middle industries are seriously lacking too.

Minimum wage is meant to tackle several long-standing structural issues of the economy at once. As the United States and Europe struggle to stay afloat economically, Asia can no longer remain as an exporter, we need to grow our domestic/Asian markets; a higher income among locals will help generate a more vibrant domestic market which in turn will generate more jobs.

Also, with minimum wage, companies and industries will likely to rely less on cheap labour but invest in longer term potentials, capabilities and hence productivity of the workforce.

This is a virtuous cycle that will check dependence on unskilled foreign workers and brain drain at once. Skilled citizens who work in foreign countries are likely to consider resettling back to their homeland if the wage difference between their home and host countries is narrowed.

Gangnum-style policy making

Essentially, BN lacks a coherent new economic framework.

I frankly do not think that the BN government and its leaders had any idea why there was a need to introduce a minimum wage. Like many other policies, it was done just to respond to the opposition’s agenda.

While BN is currently the longest serving elected government in the world that is still in office and wanted to be re-elected for policy continuity, most policies were made in what I call “Gangnam style manner” ― on the horseback, basing on just back-of-envelope calculation. Consultants were brought in later to make ad hoc decisions implementable.

So we hear hilarious claims by MCA president Dr Chua Soi Lek and his son, Chua Tee Yong, that minimum wage leads to national bankruptcy and that paying foreign workers minimum wage will amount to more currency outflow through remittance.

By the way, Dr Chua Soi Lek also claimed that Pakatan Rakyat’s policy to renegotiate toll rates with concessionaires and to end North-South Expressway toll collection would result in tens of thousands of toll workers losing their employment.

To Pakatan Rakyat, removing many monopolies and rent seekers in the economy will help generate higher disposable income for ordinary Malaysians. To Dr Chua and BN, any change to the crony economy is a bad idea.

Why minimum wage?

Before we venture into the rationales for a minimum wage in Malaysia, let us first understand the regional economic dynamics.

On November 21, 2012, newly elected Jakarta Governor Joko Widodo raised Jakarta’s monthly minimum wage by 44 per cent to Rp 2.2 million (RM700).

On the subsequent day, West Java increased the minimum wage levels of its 26 districts and cities by an average of 25 per cent; one of which, Bekasi, is at Rp 2.1 million, just slightly below Jakarta’s level. More regions are likely to match Jakarta’s level close enough to prevent their own workers from flocking to Jakarta.

The immediate response from the Indonesian stock market was huge appreciation of share prices for companies producing consumer goods, as higher wages mean higher domestic consumption. Of course some employers were not happy with the rise but many can immediately spot the benefit of a bigger domestic market.

In the Eastern seaboard of China, such as Shenzhen, minimum wage is at RMB1,500 (RM735) while new daily minimum wage level in Thailand is at 300 baht a day (RM30, almost equal to Malaysia’s minimum wage).

What do these figures mean for Malaysia? The Barisan Nasional government sets its minimum wage at RM900 for Peninsular Malaysia and RM800 for Sabah and Sarawak while Pakatan Rakyat proposed a RM1,100 package with transitional funds to facilitate vulnerable industries to adapt.

The challenge for Malaysia in the years to come is whether there will still be abundance of supply of foreign labour from neighbouring countries like Indonesia and Burma where their wages are close enough to that of Malaysia’s.

The Malaysian economy will soon to be at a standstill if supply of cheap labour dries while Malaysia’s skilled labour and professionals look elsewhere for greener pastures due to low pay and lack of upward mobility in general in Malaysia.

Minimum wage is but one of the many reforms Malaysia that needs to undertake to move to the next level.

A new agenda for SMIs/SMEs

Many of the reforms like helping labour-intensive industries to become skill and knowledge intensive should have happened twenty years ago in 1992 when Malaysia first reached middle income nation status. But because for every foreign worker brought into this country, someone close to the establishment makes a cut through licensing and other sorts of payment, there is a huge lobby to resist any change.

While minimum wage has very little impact on most industries especially those with very high value added, it is also clear that the implementation of minimum wage, even at RM700 – not to mention higher rate, causes problem for small and medium industries in low-end manufacturing.

To help them is not to stop implementing minimum wage but to support them with financing as well as skill development so that they can be less labour-intensive. What is lacking in BN’s minimum wage policy is a facilitation fund as proposed by Pakatan Rakyat to assist these affected industries.

Beyond minimum wage, Malaysia’s small and medium businesses face other challenges. Corruption, red tape and dominance of GLCs in the economy make it very difficult for the “small guys” to operate in. A form of “tax terrorism” in heightened tax collection and frequent tax raids on SMIs/SMEs have caused fear among small businesses.

What Malaysia needs is a rethinking of our wage policies in a new global and regional environment. Anything short of that won’t take us very far. ― The Rocket

* Liew Chin Tong is the member of parliament for Bukit Bendera

* This article was originally published by The Rocket

* This is the personal opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insider.

Friday, 30 November 2012

Malaysia On Right Path To Achieve Per Capita Income Of US$15,000 - Najib

KUALA LUMPUR, Nov 29 (Bernama) -- Malaysia is capable of achieving a per capita income of US$15,000 (US$1=RM3.04) in seven years' time or even earlier for it is in the right tract to advance to the status, said Datuk Seri Najib Tun Razak.

The prime minister said following the implementation of the Government Transformation Programme, Economic Transformation Programme and the New Economic Model, the GNI per capita income increased 30 per cent between 2009 and 2011, from US$6,700 to US$9,700.

"In fact, if we use the World Bank yardstick for classifying a high-income country, which is US$12,476, then it clearly shows that despite having seven more years to go, Malaysia is already on the right track to advance to that status even earlier," he said in his presidential address at the 66th Umno general assembly at the PWTC here Thursday.

The Umno president said the people deserved to know an edge over the opposition which the Barisan Nasional's (BN) had in charting out a holistic direction to develop the country for all races for the past 50 years.

"The choice is also very clear, for us to see our children regardless of race or religion laughing, growing and vacationing together, or being brought up with a burning hatred," he said before over 2,700 Umno delegates in his keynote address themed "Transformative Leadership towards the National Vision' which was telecast live over RTM.

In the one and a half speech, Najib also expounded on two important messages to Umno and BN, namely organisational discipline and winning new and young voters.

He hoped the meaning of organisational discipline was understood well for an act of sabotage could recur, thus it was important that Umno members were loyal to the party and obey instructions.

Prospective winnable candidates must not only be acceptable to the party, but should also be well-liked as voters by the community, he added.

On new voters, the prime minister said the voting behaviour of the new generation born after Umno formation was different for their consideration was not based on past experience, but merit and future vision.

On opposition leader Datuk Seri Anwar Ibrahim, Najib said he qualified to be appropriately dubbed a political chameleon.

"When speaking in the United States and to other communities, he speaks in a different tone; when lecturing to the Malays and Muslims, it is another story.

"While he was with us in Umno, his methods were such and such; now as the leader of the opposition, his stand has changed. Going by an adage, people say he speaks with a forked tongue," he added.

The prime minister said obviously, no one could guess Anwar's real character for he openly supported efforts to ensure the security of Israel, at a time when the world was condemning the cruel Tel Aviv regime for the genocide of Muslims in Gaza.

"However, when the government tabled a motion to censure Israel in Parliament ... he expressed support as well ... it really puzzles me," said Najib.

Najib also questioned PAS' hypocrisy when he recalled that "Tuan Guru" had labeled Umno members as infidels in 1981 for working with non-Muslims, thus sowing the seeds of hatred among Muslims.

Chiding the DAP for touting itself as the most democratic party in the country, Najib said it was in fact a father, son, in-law party with its adviser, Lim Kit Siang, even though not an elected leader, was evidently quite a powerful individual in the party.

Thursday, 8 November 2012

Malaysia Poised To Be A Strong Economic Partner To US, Says Najib

KUALA LUMPUR, Nov 7 (Bernama) -- Prime Minister Datuk Seri Najib Tun Razak Wednesday said that Malaysia was highly capable and poised to be a strong economic partner to the United States.

He also hoped that during Barack Obama's second term as the US President, negotiations on the Trans-Pacific Partnership (TPP) agreement, of which Malaysia and US are members, would be concluded quickly, so that it will open up new trade and investments between the two sovereign nations.

"Malaysia has been always supportive of initiatives to promote and safeguard Southeast Asia and it has also gained recognition for its efforts in helping to broker peace with Muslim rebels in the troubled southern part of Philippines," he told reporters after launching the Entrepreneur Catalyst Initiative Programme (PUsH) at Menara TM Convention Centre here.

Asked whether Najib had expected Obama to win, the Prime Minister replied:

"The results showed that popular votes for both competitors were almost equal. However, the votes for Obama was far ahead, in terms of comprehensive support from the US citizens".

The Prime Minister also congratulated Obama on his re-election as the president of the United States.

The TPP is a free trade agreement that aims to further liberalise the economies of the Asia-Pacific region.

Wednesday, 10 October 2012

Global Economic Crisis: The Largest Economy In The World Is Imploding

Michael Snyder: A devastating economic depression is rapidly spreading across the largest economy in the world.  Unemployment is skyrocketing, money is being pulled out of the banks at an astounding rate, bad debts are everywhere and economic activity is slowing down month after month.  So who am I talking about?  Not the United States – the economy that I am talking about has a GDP that is more than two trillion dollars larger.  It is not China either – the economy that I am talking about is more than twice the size of China.  You have probably guessed it by now – the largest economy in the world is the EU economy.  Things in Europe (NYSEARCA:VGK) continue to get even worse.  Greece and Spain (NYSEARCA:EWP) are already experiencing full-blown economic depressions that continue to deepen, and Italy (NYSEARCA:EWI) and France (NYSEARCA:EWQ) are headed down the exact same path that Greece and Spain have gone.  Headlines about violent protests and economic despair dominate European newspapers day after day after day.  European leaders hold summit meeting after summit meeting, but all of the “solutions” that get announced never seem to fix anything.  In fact, the largest economy on the planet continues to implode right in front of our eyes, and the economic shockwave from this implosion is going to be felt to the four corners of the earth.
On Friday, newspapers all over Europe declared that Greece is about to run out of money (again).
The Greek government says that without more aid they will completely run out of cash by the end of November.

The Euro’s Demise Has Been Set in Motion: Are you protected?


"Nationalism will emerge. Healthier countries will not see fit to spend their hard earned money to bail out their less responsible neighbors."

CLICK HERE to get your Free E-Book, “Why It’s Curtains for the Euro”

Of course the rest of Europe is going to continue to pour money into Greece because they know that if they don’t the financial markets will panic.
But they are also demanding that Greece make even more painful budget cuts.  Previous rounds of budget cuts have been extremely damaging to the Greek economy.
The Greek economy contracted by 4.9 percent during 2010 and by 7.1 percent during 2011.
Overall, the Greek economy has contracted by about 20 percent since 2008.
This is what happens when you live way above your means for too long and a day of reckoning comes. GET A FREE TREND ANALYSIS FOR ANY STOCK HERE!
The adjustment can be immensely painful.
Greece continues to implement wave after wave of austerity measures, and these austerity measures have pushed the country into a very deep depression, but Greece still is not even close to a balanced budget.
Greece is still spending more money than it is bringing in, and Greek politicians are warning what even more budget cuts could mean for their society.
For example, what Greek Prime Minister Antonis Samaras had to say the other day was absolutely chilling….
“Greek democracy stands before what is perhaps its greatest challenge,” Samaras told the German business daily Handelsblatt in an interview published hours before the announcement in Berlin that Angela Merkel will fly to Athens next week for the first time since the outbreak of the crisis.
Resorting to highly unusual language for a man who weighs his words carefully, the 61-year-old politician evoked the rise of the neo-Nazi Golden Dawn party to highlight the threat that Greece faces, explaining that society “is threatened by growing unemployment, as happened to Germany at the end of the Weimar Republic”.
“Citizens know that this government is Greece’s last chance,” said Samaras, who has repeatedly appealed for international lenders at the EU and IMF to relax the onerous conditions of the bailout accords propping up the Greek economy.
But don’t look down on Greece.  They are just ahead of the curve.  Eventually the U.S. and the rest of Europe will go down the exact same path.
Just look at Spain.  When Greece first started imploding, Spain insisted that the same thing would never happen to them.
But it did.
By itself, Spain is the 12th largest economy in the world, and right now it is a complete and total mess with no hope of recovery in sight.
The national government is broke, the regional governments are broke, the banking system is insolvent and Spain is in the midst of the worst housing crash that it has ever seen.
On top of everything else, the unemployment rate in Spain is now over 25 percent and the unemployment rate for those under the age of 25 is now well above 50 percent.
An astounding 9.86 percent of all loans that Spanish banks are holding are considered to be bad loans which will probably never be collected.  Before it is all said and done, probably ever major Spanish bank will need to be bailed out at least once.
Manufacturing activity in Spain has contracted for 17 months in a row, and the number of corporate bankruptcies in Spain is rising at a stunning rate.
Five different Spanish regions have formally requested bailouts from the national government, and the national government is drowning in an ocean of red ink.
Meanwhile, panic has set in and there has been a run on the banks in Spain.  The following is from a recent Bloomberg article….
Banco Santander SA (SAN), Spain’s largest bank, lost 6.3 percent of its domestic deposits in July, according to data published by the nation’s banking association. Savings at Banco Popular Espanol SA, the sixth-biggest, fell 9.5 percent the same month.
Eurobank Ergasias SA, Greece’s second-largest lender, lost 22 percent of its customer deposits in the 12 months ended March 31, according to the latest data available from the firm. Alpha Bank SA (ALPHA), the country’s third-biggest, lost 26 percent of client savings during that period.
Overall, the equivalent of 7 percent of GDP was withdrawn from the Spanish banking system in the month of July alone.
Thousands of Spaniards have become so desperate that they have resorted to digging around in supermarket trash bins for food.  In response, locks are being put on supermarket trash bins in some areas.
But Greece and Spain are not alone in seeing their economies implode.
As I wrote about recently, the number of unemployed workers in Italy has risen by more than 37 percent over the past year.
The French economy is starting to implode as well.  Just check out this article.
The unemployment rate in France is now above 10 percent, and it has risen for 16 months in a row.
It is just a matter of time before things in Italy and France get as bad as they already are in Greece and Spain.
The chief economist at the IMF is now saying that it will take until at least 2018 for the global economy to recover, but unfortunately I believe that he is being overly optimistic.
As I have said so many times before, the next wave of the global economic crisis is rapidly approaching.  Depression is already sweeping much of southern Europe, and it is only a matter of time before it sweeps across northern Europe and North America as well.
Neither Obama or Romney is going to be able to stop what is coming.  The global economy is getting weaker with each passing day.  The central banks of the world can print money until the cows come home, but that isn’t going to fix our fundamental problems.
The largest economy in the world is imploding right in front of our eyes and nobody seems to know what to do about it.
If you believe that Barack Obama, Mitt Romney or Ben Bernanke can somehow magically shield us from the economic shockwave that is coming then you are being delusional.
Just because what is going on in Europe is a “slow-motion train wreck” does not mean that it will be any less devastating. GET A FREE TREND ANALYSIS FOR ANY STOCK HERE!
Yes, we can see what is coming and we can understand why it is happening, but that doesn’t mean that we will be able to avoid the consequences.

Related: Dow Jones Industrial Average (INDEXDJX:.DJI), S&P 500 Index (INDEXSP:.INX), Direxion Daily Financial Bear 3X Shares (NYSEARCA:FAZ), Direxion Daily Small Cap Bear 3X Shares ETF (NYSEARCA:TZA),  Financial Select Sector SPDR (NYSEARCA:XLF).
Written By Michael Snyder
Michael has an undergraduate degree in Commerce from the University of Virginia and a law degree from the University of Florida law school.   He also has an LLM from the University of Florida law school. Michael has worked for some of the largest law firms in Washington D.C., but now is mostly focus on trying to make a difference in the world.