A Better Future 宏图大志

Franchise Business Opportunity

2009-05-14T11:38:00.003+08:00

Event: : "Franchise Entrepreneurship During Economic Hard times”
Date : 19th May 2009 (Tuesday)
Time : 9.00 a.m. till 3.00 p.m.
Venue : 3rd Floor, Auditorium, Wisma MCA, KL
Organizers : MCA National Youth Economic Task Force & Asiawide Franchise
Participation : Free admission
Enquiry : Kindly call MCA Youth Secretariat 03-21618044 or email youth@mca.org.my

Bright prospect seen for franchise business
By EDY SARIF

KUALA LUMPUR: Asiawide Franchise Consultants Ptd Ltd is optimistic that the franchise business will flourish during this economic slowdown as people seek secure jobs.

Chairman Albert Khong said the current job instability had led people to search for opportunities that offer a more certain future, including running their own businesses.

“The uniqueness of a franchise operation is that whoever wants to be an entrepreneur is not required to have a deep knowledge of that business, as there is an existing system on how to do it.

“The only things that you need are passion and commitment,” he told StarBiz after a media briefing.
Dr Jeffrey Goh Sim Ik (left) and Albert Khong at the media briefing

Asiawide is one of the most experienced franchise consulting companies in Asia with strategic partners in about 15 countries.

Citing McDonald’s as an example, Khong said anyone wanting to be a franchisee needed only to adhere to its business system as the franchisor would take care of other aspects such as branding, research and development and training.

“Apart from that, the franchise business enjoys economies of scale as big players like McDonald’s can get better pricing because of their strong brand and big volume of supply needed,” he said.

However, Khong said, like other businesses, franchise too had its own risks.

“But based on our experience in handling the franchise business, there are more positive results compared with the bad ones,” he said.

Kong said food and beverage franchise was popular in developing countries as people wanted to try new type of food, especially those that carry international brand.

“The changes can be seen once the countries are developed. For example, in the United States and Europe, people look for service type of franchise business such as education, healthcare and retail,” he said.

MCA National Youth Economic Task Force chief coordinator Dr Jeffrey Goh Sim Ik said this was the best time to venture into franchise business as locations were more selectable, rental rates more negotiable and construction costs were lower.

“With support from the Government and banks, the franchise business is one of the opportunities for those who are unemployed or have been retrenched, not forgetting the youth who are eager to start their own businesses,” he said.

Jeffrey urged those interested to attend a seminar on Entrepreneurship Through Franchising During Economic Hard Times on May 19.

The MCA National Youth Economic Task Force and Asiawide Franchise are co-organisers of the event, to be held at Wisma MCA in Jalan Ampang, Kuala Lumpur.

The speakers include Khong, Asiawide Franchise Sdn Bhd executive director Jamaluddin Ghani and Ho Yean from Action International.

About 17 Malaysian franchisors as well as representatives from Malaysia Franchise Association and banks have confirmed their attendance, some of whom will set up booths.

As admission is free, the organisers hope to attract 1,000 participants.

(Source: Thestar Online , 14 May 2009)

Seminar & Franchise Opportunities sessions

2009-05-05T14:20:00.005+08:00

Event: : "Franchise Entreneurship During Economic Hard times”
Date : 19th May 2009 (Tuesday)
Time : 9.00 a.m. till 3.00 p.m.
Venue : 3rd Floor, Auditorium, Wisma MCA, KL
Organizers : MCA National Youth Economic Task Force & Asiawide Franchise
Participation : Free admission
Enquiry : Kindly call MCA Youth Secretariat 03-21618044 or email youth@mca.org.my

Panel of Speakers:

1) Mr. Albert Kong
Asiawide Franchise Consultants Pte Ltd (Singapore)
Topic : Franchising Trends in Asia

2) Encik Jamaluddin Ghani
Asiawide Franchise Sdn Bhd (Malaysia)
Topic : Franchising in Challenging Times - Types of Franchise to look for

3) Puan Hasmah Ahmad
Malaysian Franchise Association
Topic : Franchising, Franchise Concepts and Benefits of Franchising

4) Ms. Ho Yean
Action International
Topic : How to find opportunities despite Challenging Times!

5) Mr. Albert Kong
Asiawide Franchise Consultants Pte Ltd (Singapore)
Topic : How to select a franchise? (in mandarin)

Franchise Participants:

Malaysia Franchisor:
1) Marrybrown Fried Chicken (F&B)
2) A'Funtee (F&B)
3) Cup Bon (F&B)
4) Action International (Business Coaching)
5) Balloons and Bouquets (souvenir/services)
6) Cambridge English for Life (Education/language)
7) MEB Berhad (Education)
8) Q-dees Worldwide Education (Education)
9) The Living Classroom (Education)
10) Leno (Retail)
11) Red Modani (Retail)
12) Reliance Travel (Travel)
13) Camps & Apparel - My Outpost (Apparels)
14) Crestar (Education)
15) Rockwills (Services)
16) Nelson's Corn (F&B)
17) K Box Karaoke (Entertainment)

Singapore Franchisor:
1) Body Contours (Beauty)
2) EMC Learning (Education)
3) Loy Kee Chicken Rice (F&B)

Australian Franchisor:
1) Pack N Send (Services)

Others:
1) Malaysian Franchise Association
2) Hong Leong Bank Berhad
3) AM Bank Berhad
4) KFH Malaysia Berhad
5) Public Bank Berhad
6) Asiawide Franchise Consultant Pte Ltd (Singapore)
C-3 Car Care Centre (Indonesia)
WSI (IT) (Canada)
7) Asiawide Franchise Sdn Bhd (Malaysia)
Su Chan Restaurant

Some good news during recession ( we are heading to the right direction)

2009-04-17T12:52:00.003+08:00

The G20 meeting held on April 2, 2009 concluded and declared that they will:

1. Strengthen the financial system.
(a) By taking and continue to take action to strengthen regulation & supervision to reform the financial sector.
(b) Strengthening transparency & accountability, enhancing regulation, promoting integrity in financial markets & reinforcing international cooperation.

2. Deliver resources through international financial institutions to:
(a) Ensure that capital continues to flow to emerging market and developing countries.
(b) Increase the resources available through the international financial institutions (IMF).
(c) Ensure that the institutions have the facilities needed to address the crisis.

Global efforts to counter global slowdown (including Malaysia)

1. Coordinated efforts to inject stimulus packages to pump prime flagging economies.
2. Interest rates cuts.
3. Manage currency value.
4. Assistance to ailing industries.

Petronas petrol dealers and operators -> 90% of them are Bumiputeras

2009-01-14T13:26:00.002+08:00

PETROLIAM Nasional Bhd's network of close to 950 service stations nationwide now control 44 per cent of the total retail market share, company officials said yesterday.

"As at end 2008, there were 750 Petrol kiosk dealers and operators, with 90 per cent of them Bumiputeras," Petronas president and chief executive officer Tan Sri Mohd Hassan Marican said at the second day of the 3rd Islamic Economic Congress in Kuala Lumpur yesterday.

His working paper was presented by Petronas corporate services vice-president Ahmad Nizam Salleh.

Mohd Hassan said although Petronas is relatively a "young" oil company, having just only started its business in 1974, Petronas is now a brand name that is well known globally.

"It is now considered on par with or even better than other international companies, especially when it was ranked among the top 100 of the Global Fortune 500 companies," he said. Petronas was ranked 95 last year, up from 121 the previous year.

During the question-and-answer session, Ahmad Nizam said Bumiputera dealers have benefited from Petronas' debut in retail petrol business, especially when Petronas Dagangan Bhd was set up in 1981.

"They (dealers) should be praised and congratulated as they were not given any preferential treatment when Petronas Dagangan was established.

"They have to compete with dealers from other companies such as Esso and Shell who have been in the business for more than 100 years," he said.

Adapted from BT.

Red Alert on Guidelines of foreign participation in the distributive trades services in Malaysia

2008-12-17T23:55:00.003+08:00

PENYERTAAN ASING DALAM SEKTOR PERDAGANGAN PENGEDARAN

Once again, the MDTCA is going to implement the guideline which requires all local and foreign companies to comply the 15-30% bumi equity allocation. This issue was previously solved by Ka Ting with a verbal promise by Shafie Apdal and Najib to suspend the guideline in 2006. The latest development of the guidelines is very DANGEROUS and Malaysia's businesses will be badly hurt by the over-emphasizing of affirmative actions.

The MDTCA's guidelines requires you to comply with:
(1) Bumi equity allocation
(2) Employment structure to reflects the ethnicity distribution(even your are private sector).

Business license and expatriate entrance will only be approved if u satisfied the above two criteria in the guideline.

The details are as below:
http://www.kpdnhep.gov.my/index.php?option=com_content&task=view&id=224&Itemid=254

Proses/Prosedur Permohonan

Mulai 1 November 1995, semua syarikat yang mempunyai kepentingan asing yang ingin bergiat dalam sektor perdagangan pengedaran di Malaysia dikehendaki mendapat kelulusan daripada Jawatankuasa Perdagangan Pengedaran, Kementerian Perdagangan Dalam Negeri dan Hal Ehwal Pengguna untuk menjalankan perniagaan baru dalam sektor perdagangan pengedaran. Kelulusan ini perlu diperolehi sebelum perniagaan dijalankan.

Borang permohonan yang telah lengkap diisi dan bertaip berserta dokumen-dokumen yang telah disahkan benar hendaklah dikemukakan kepada Kementerian. Setiap permohonan yang diterima akan disemak Borang Permohonan sama ada lengkap atau tidak. Hanya Borang Permohonan yang lengkap akan diproses sementara Borang Permohonan yang tidak lengkap akan ditolak. Permohonan hendaklah dibuat sendiri oleh syarikat-syarikat yang ingin memohon kelulusan.

Kementerian akan hanya mengeluarkan Surat Akuan Terima kepada pemohon sekiranya Borang Permohonan yang diterima lengkap.

Permohonan akan diproses sewajarnya dan surat keputusan Jawatankuasa Perdagangan Pengedaran akan dikeluarkan selepas keputusan diperolehi. Keputusan Jawatankuasa adalah muktamad dan rayuan mengenai keputusannya tidak akan dilayan.

Borang Permohonan

Borang WRT1 bagi permohonan untuk menjalankan Perniagaan Perdagangan Pengedaran di Malaysia boleh diperolehi bersama-sama dalam Buku Garis Panduan mengenai Penyertaan Asing dalam Perdagangan Perdagangan Pengedaran.(MUST fill in details of equity structure and employment structure)

We hope that the MCA's minister will brought this issue to the Cabinet and either further suspend the implementation or abolish the guideline.

Condolence to Senator Dato' Lee Sing Chooi

2008-12-10T17:05:00.001+08:00

Economic and Financial Development in Malaysia in the Third Quarter of 2008

2008-12-01T16:27:00.002+08:00

Adapted from Bank Negara Malaysia (Nov 08)

1.Growth moderated in the third quarter (Q3).

a.The Malaysia economy registered a growth of 4.7% in Q3 (2Q 08 : 6.7%).
b.Net real exports of goods and services declined by 14.8%, compared with a growth of 20% in the 2Q 08.
c.Growth was supported by domestic demand, which increased by 6.5% (2Q 08: 8.3%) following continued expansion in private and public consumption.
d.The private consumption growth at 8.1% (2Q 08: 9%) was supported by the effects of the bonus payment to civil servants, festive season spending and cash rebates payment for fuel subsidy.
e.The public consumption increased by 6.9% (2Q 08: 10.9%) on continued high expenditure for emoluments and supplies and services.
f.Investment was supported by higher public development expenditure in particular for the transportation, agriculture and rural development, and education sectors.

2.Sectors Analysis.

a.Services Sectors sustained its strong expansion, increasing by 7.1% (2Q 08: 8.2%)
i.Higher finance and insurance sub-sector growth and strong consumption activities.
b.Manufacturing sector growth was weaker at 1.8% (2Q 08: 5.6%)
i.Weakness in the export-oriented industries. Domestic oriented industries register strong growth mainly by supporting transport equipment, construction related products and food industries.
c.Agriculture sector grew at a more moderate pace at 3% (2Q 08: 6%)
i.Deceleration in production of palm oil.
d.Construction sector moderated further at 1.2% growth (2Q 08: 3.9%)
i.Weaker activity in the residential and civil engineering segments and higher prices of building materials.
e.Mining Sector growth was sluggish at -0.3% growth (2Q 08: -0.5%)
i.Lower natural gas output.

3.Consumer Price Index (CPI).

a.CPI increased to 8.4% in the 3Q (2Q 08: 4.8%).
b.Higher inflation due to higher retail prices for petrol and diesel, higher electricity tariff and higher food prices.

4.Trade Balance

a.Trade balance in 3Q registered another record surplus at RM41.6bil (2Q 08: RM40.6bil).
b.Exports growth moderated, but remained firm at 16.9% (2Q 08: 20.8%) supported by commodities and resource-based manufactured products.
c.Gross Imports increased by 10.3% (2Q 08: 9.9%) due to higher intermediate and consumption imports.

5.Foreign Direct Investment (FDIs)

a.Net FDIs amounted to RM2.7bil in 3Q (2Q 08: RM8.6bil).
i.Mainly channeled to the services, oil and gas and manufacturing sectors.
b.Net FDIs outflow at RM16.1bil (2Q 08: -RM3.6bil)
i.Mainly channeled to the services and manufacturing sectors.

6.International Reserves

a.International reserves amounted to US$99.7bil as at Nov 14 (US$109.7bil as at Sept 30).
b.The reserves position sufficient to finance 8.1 months of retained imports and 3.7 times the short term external debt.

7.Overnight Policy Rate (OPR)

a.OPR was left unchanged at 3.5% throughout the 3Q.
b.Average lending rate softened to 5.96% as at Sept.
c.Loan applications and approvals moderated due to lower demand for new loans from business and household sectors.

8.Exchange rate

a.The US dollar strengthened following the de-leveraging by US financial institutions in the international financial markets and the inflows of funds into US treasuries.
b.Ringgit depreciated by 5.5% against US dollar and 7.3% against the Japanese Yen during the 3Q.
c.Ringgit appreciated against the pound sterling (4.6%) and the EURO (3.9%) indicates that rapid deteriorating economic conditions in the EU.

9.Banking system remained resilient

a.Banking sector remained resilient, supported by strong capitalization, sustained profitability and continued improvement in the non-performing loans.
b. Net NPL ratio remained unchanged at 2.4% at end-October 2008.

10.Economic impact of global financial crisis

a.Despite aggressive injection of liquidity worldwide, financial markets have not normalized and continued to remain highly volatile.
b.Inflationary concerns have receded due to sharp deceleration in growth and decline in commodity prices.
c.Export sector will be affected while the continued volatility across financial markets may dampen business outlook.

Auto floating mechanism for Petrol Pricing

2008-11-29T10:59:00.002+08:00

The government recently proposed to either set a minimum floor price or fix a managed float system for the petrol pump pricing. We recognizes the interest of the public and has always taken the position that the economic sectors should be liberalized and auto floating mechanism should be implemented in the petrol pump pricing.

Acknowledging the fact that world crude oil prices has been significantly drop from US$120 in July to US$50 in November, we urge the government to re-examine the economic policies to adapt to the huge changes that affects the citizens daily life.
An auto floating mechanism in petrol pump pricing will provide an optimum price for motorists and the government will be able to monitor the mechanism in an open and transparent manner.

We also urge the government to continue in giving out the 30 cents petrol subsidies per litre as promised. The chain reaction from the previous petrol hike is still there and the inflation is still stands high at 7% when compared to 2% in 2006. The interest of the lower and medium income group should be taken care of.

We are objecting the floor price fixing for petrol pump as it does not promote transparency and consistency in government policies. The economy prosperity should be enjoyed by all citizens.

SEMINAR on Impact of the Global Financial Crisis: What Lies Ahead for Asia

2008-11-26T10:51:00.002+08:00

Speakers:

Dr Michael Lim Mah-Hui
Senior Fellow,
Asian Public Intellectuals Program
Nippon Foundation

Mr Manu Bhaskaran
Director and CEO,
Centennial Asia Advisors, Singapore

Date:

Friday, 5 December 2008

Time:
3.00 pm – 5.00 pm

Venue:

ISEAS Seminar Room II

About the Speakers

Dr Michael Lim Mah-Hui is a Senior Fellow in the Asian Public Intellectuals Program of the Nippon Foundation. He taught political economy and sociology in various U.S. and Malaysian universities before he joined international banking. He has over twenty years experience as an investment, commercial, and development banker at Chemical Bank (now JP Morgan Chase), Credit Suisse First Boston, Deutsche Bank, Standard Chartered Bank, as well as Asian Development Bank. He has written extensively, and delivered public lectures in various regional institutions and universities on the present global financial crisis and its impact on Asia. Dr Lim writes extensively for newspapers and journals in Malaysia, Singapore, Indonesia, Philippines, Thailand, Australia, India and the United States. He is also active in community and civil society groups. Dr Lim received his B.A. (Honors) in Economics from the University of Malaya, a Masters in International Affairs, a Masters in Sociology, and a PhD in Development Studies from the University of Pittsburgh.

Mr Manu Bhaskaran is currently Director and CEO of Centennial Asia Advisors, Singapore. Mr Bhaskaran has over twenty years of experience in analyzing political and economic trends in Asia. He has worked for the Singapore government on issues of regional security, and has also subsequently worked with the SG Investment Bank (an international investment banking division of Societe General), as Chief Economist and Chief Strategist. Mr Bhaskaran writes extensively for the Far Eastern Economic review, the Nikkei, and other business weeklies. He is also a frequent speaker at the World Economic Forum. He also continues to be involved in several government initiatives; he is a Council Member of the Singapore Institute of International Affairs, and serves on the board of a listed Singapore government-owned company. He has also served as a Visiting Fellow at the Institute of Policy Studies. Mr Bhaskaran has a Masters degree in Public Administration from the John F Kennedy School of Government at Harvard University and a Bachelors degree in economics from Cambridge University. In addition to these, he is a qualified Chartered Financial Analyst.

Abstract

As the global economy still reels under the effects of one of the most serious financial crisis and economic downturns in decades, Asia ponders the particular effects the crisis is likely to have on the region’s economies. The US and EU have already made massive financial interventions in their domestic financial systems; and heads of the G20 discuss major reforms and solutions to the global financial system in their meeting in November. Simultaneously, there have been calls for urgent and coordinated action among Asian economies to protect their economic growth in the face of the economic downturn in the US and EU. While Asia appears to be cushioned against immediate effects of the financial turmoil, there are several concerns about the potential long-term effects of the crisis on the region’s growth. Have the Asian economies learned valuable lessons from the severe financial crisis that hit the region a decade ago? Will Asia play a prominent role in rejuvenating the global financial system post-crisis? These are some of the questions on everybody’s minds as they try to understand the implications of the global financial crisis from a regional perspective.

Dr Michael Lim Mah-Hui and Mr Manu Bhaskaran will discuss some of these important issues in depth as they present their views on the global financial crisis from the regional perspective of Asia.

ISEAS cordially invites you to the Seminar.

Bank Negara is printing more $$$ now...

2008-11-20T16:24:00.003+08:00

Governor of Bank Negara said that the decline in foreign reserves for Oct and Dec 08 is mainly due to a reversal of short-term capital flows. The forex exchange between US$ and RM decline to US$1.00=RM3.60 now.

Accodring to source from Ganesh (http://sahathevan.blogspot.com/),

1. Between 15 May 2008 and 31 October 2008, Bank Negara’s total assets in Malaysian Ringgit terms fell 26% from RM 506,986,188,441 to RM 374,372,661,598.

2. Reserves of foreign exchange and gold alone fell 13.6% , from RM 399 919 106 509 to RM 345 549 644 622. This equated in US dollar terms to a fall of 20%, from USD 125.1 billion to USD 100.2 billion.

3. Bank Negara appears to have financed this fall by simply printing more Ringgit.
Over the same period from 15 May 2008 to 31 October 2008 currency in circulation has increased 9.3%, from RM 42 614 989 793 to RM 46 595 122 319.

4.However this might not be the whole story.Federal Govt deposits have increased 130%, from RM 9,434,186,821 to RM 21,622,286,904. This increase raises the question of where the deposits came from. It is possible that these may well be “new” Federal Government funds, recently minted and issued by Bank Negara.

Conclusion:

All this would mean a further decline in the value of the Ringgit,and higher inflation as more money circulates in the economy.

Rules on manufacturing licence relaxed to encourage investments in Malaysia

2008-11-15T07:58:00.002+08:00

Yes, Malaysia is liberalizing the manufacturing sectors to attract FDIs to overcome the recession, which is similar to the 1997 financial crisis.

We will continue our work to lobby for a more liberal economic policy in Malaysia.

The automatic issuance of manufacturing licences within two days will be made possible as they will now be issued by the Malaysian Industrial Development Authority (Mida), said International Trade and Industry Minister Tan Sri Muhyiddin Yassin.

This was one of several measures he said the Government would undertake to help domestic trade and industry players counter the impact of the global economic slowdown.

An International Trade and Industry Ministry (Miti) source said the ministry had also asked Mida to come up with a simpler form to apply for the licence, which will require only basic information for automatic approval.

Except for certain categories of activities, licence applications will no longer require approval by the Miti secretary-general.

However, activities related to security, health, environment and religion will still need to go through the normal vetting and approval process by the licensing officer.

Firms have said that under the old system, licence application could take up to a month.

Under the Industrial Coordination Act, a manufacturing licence is required for projects by companies with a minimum shareholders’ fund of RM2.5mil or employing 75 full-time employees. This requirement still remains.

Earlier measures to liberalise the licensing process includes doing away with renewal. The RM50 licence fee was also abolished on June 1. Muhyiddin also said he would announce more measures after meeting industry players in other specific sectors, as well as based on the future economic scenario.

Meanwhile, MP for Alor Gajah Datuk Seri Dr Fong Chan Onn, who is a former dean of Universiti Malaya’s economic faculty, said: “If the automatic issuance of licence also deals with approval and usage of land, staff employment, Immigration approval and various other past requirements, it will encourage more investors to do business in Malaysia.”

Current Economic Development Analysis (Malaysia)

2008-11-13T11:52:00.005+08:00

List of Incentives

1st Wave (BNM)
*All currency deposits with financial institutions will be fully guaranteed by the Government until December 2010.

2nd Wave
*RM 5bil fund injection to ValueCap Sdn Bhd.
*Mismanagement of GLCs (Silterra ,ValueCap, EPF) and government procurement.

3rd Wave
*Economic Stimulus Plan tabled in Parliament (Nov 4). The key measures include:
(i) a RM7b new Government spending package,
(ii) Lower EPF contributions of 8% for two years, and
(iii) liberalising building material industries, as well as foreign investment in commercial properties and the services sector.

Attacks by Pakatan Rakyat

1st Wave (BNM)
*Bank Negara Malaysia is estimated to have spent US$12 billion during September to defend the ringgit, said Moody’s Economy.com.
*How to justify the forex defence (RM42.4 billion) and the Ringgit depreciation from RM 3.25 to RM3.57 now?

2nd Wave (GLCs -ValueCap)
*Owned jointly by Khazanah, PNB and KWAP and at the same time provided a bond (est value RM10bil) to ValueCap.
*RM5bil injection into ValueCap Sdn Bhd is in fact a “rescue package” to repay its RM5.1bil debt (Bond) due in February 2009.
*MOF owe an explanation to the public on mismanagement of GLCs (BII Indonesia take-over, Silterra est. lost of RM 1bil and Eurocopter procurement).
*How to justify the RM5bil loan from KWSP and is there transparency?

3rd Wave (ESP)

*MPs blurred by the Budget 2009 winding up speech and Economic Stimulus Plan. (Is the ESP in the budget? The revised figures in the speech?)
*The economic figures was revised and different from Budget 2008, therefore, Najib need to represent the budget again (not following procedure and no details on how the figures derive from).
*Revised economic figures shows high budget deficit at -4.8% from previously -3.6%, highest among ASEAN. (BN deficit is RM28.45bil, PR deficit is RM22.10bil)
*Revised figures shows that the projected revenue decrease by RM 8bil only as it does not tally with the current commodity price from expected. (Crude Oil expected at US$120/bbl but now drop to US$65/bbl)
*The proposed RM7bil is a “fantasy”. (Government expect the RM7bil will come from fuel subsidy savings next year).
*PR is ensuring “quality deficit” be achieved, not injecting funds into speculative activities.
*Status of economic corridors is unknown.

BN Counter Attacks

1st Wave (BNM)
*No response from Government.
*BNM says there is ample liquidity and there has been normal functioning of the financial markets.

2nd Wave (GLCs)
*No response on GLCs mismanagement (ValueCap, Silterra).

Finance Minister 2 (Tan Sri Noor Mohd. Yakcop)
*EPF will not take up equity stake in ValueCap.
*The RM5bil is not for debt repayment.
*ValueCap shareholders may extend the bond obligation repayment period.
*No reasons as to why EPF extending the loan to ValueCap but he assured that the loan was guaranteed by the government.

3rd Wave (ESP)

Finance Minister (Dato’ Sri Najib Razak)
*The ESP is not a part of the budget. ESP is aimed at sustaining the economy growth.
More liberal policies will be adopted. Open tender system will be implemented.
*Structural change in the government to encourage competitiveness and encourage private sector investment.
*More measures will be taken soon to stimulate the economy growth (Economic Council).

Finance Minister 2 (Tan Sri Noor Mohd. Yakcop)
*In the StarBiz Interview, he explained that the government will spend wisely and efficiently with Project Management Unit (PMU).
*Implementing open tender system and PMU to reduce bureaucracy.
*No intention to cut back on the economic corridors (Pak Lah misquoted).
*GLCs will come up with skills training programmes to tackle unemployment.
*EPF contribution reduction will go on. (refusal to reduction will need to fill in a notification form).

PM’s Dept Minister (Tan Sri Amirsham)
*Government will liberalize the economy and financial market.
*RM6bil. under RMK9 will be channeled to the economic corridors.
*Government will increase the economic pie for Malaysian.
*BII take over is a strategic long term investment.
*EPU is monitoring the global economic situation.
*Budget deficit is unavoidable as government increasing spending.

MCA’s Mei Fun
*Open tender system will increase the nation’s competitiveness level.

Petronas Position in Government Financial System

2008-11-12T12:02:00.005+08:00

Facts about Petronas:
1. Biggest contributor to the government's income.
2. Petronas contributed RM62.8bil or 44% of the government's overall income in 2008.
3. Petronas shares will not be listed in Bursa Malaysia to protect the country's interest.
4. There are 4 listed companies under the Petronas, as below:
(a) Petronas dagangan Berhad.
(b) Petronas Gas Berhad.
(c) MISC Berhad.
(d) KLCC Property Holdings bhd.

Speculated unknown facts about Petronas:

1. Has been used by the government to bailout projects since Tun M era.
2. Petronas projects and license in Malaysia must be dominant with Malay, which means u must have 51% Bumi equity to qualify for projects and license.
3. Force the existing oil and gas related companies to restructure their equity and employment to reflects the racial distribution.
4. Petronas vendor programme for petrol station is only applicable for Bumiputera.
5. Petronas's employment are dominated by Bumiputera.
6. Petronas's account is only given to the Prime Minister (nobody can get details from it).

Relaxation of NEP (Series 2)

2008-11-12T11:52:00.003+08:00

Government Procurement System.

a.Margin of Preference (MOP).

Background:
•The government procurement policy was seen as being too conservative.

Arguments:
•The above procurement process is selective and non-transparent.
•The procurement system is not implemented in a transparent manner.
•Greater relaxation in our procurement policies is needed in order to enhance the quality and price competitiveness of government procurement.

Suggestions:
•A committee must be setup to preserve the transparency and integrity in awarding the government tenders for projects and services.
•Preferential treatment to Bumiputra companies must be done in a transparent manner.

b.Direct negotiation (Direct NEGO) in Government Procurement.

Background:
•The direct negotiation approach should only be conducted when the number of people who are able to implement a particular project is limited.
•Procurement by direct negotiation requires special approval from the Treasury of Malaysia.

Arguments:

•Financial irregularities will arise from the poor monitoring of projects as it does not goes through open tender system.
•There is no transparent system in the direct negotiation approach.
•The officers are conducting the direct negotiations approach even there are a lot of people able to implement the project.

Suggestions:

•Abolish the direct negotiation approach and replace it with open tender system with MOP.

c.Class F contractor.

Background:

•There are approximately 35,253 Class F registered contractors (Bumiputera only). They are the smallest fry of the contractor’s world, dependent on government contracts that range from RM5,000 to RM200,000 project.

Arguments:

•These Class F contractors had been "too government-centric”. They have become too reliant on the Government for contracts.
•The Class F concessions handed out are usually a political patronage of UMNO.

Suggestions:

•Abolish the class F contractor system and replace it with an open tender with MOP system for all SMEs.

Proposed relaxation of NEP (Series 1)

2008-11-10T14:48:00.002+08:00

1.Foreign Investment Committee (FIC) Guidelines.:

Background
•This has been the overriding policy guiding all Bumiputera equity arguments and justification since 1970’s.
•FIC guidelines regulate and approve the foreign investments in Malaysia.
•The guidelines ruled that all foreign investment in Malaysia is subjected to the Bumiputra equity requirement (30%).

Arguments:
•Has not addressed the problem of poverty and income inequality.
•We need more liberal investment policies as FDIs outflows exceed inflows. (In 2007, Malaysia’s FDIs outflows at RM38bil and inflows at RM29bil.)
•Economic liberalization will help to reduce bureaucracies and cost of doing business.

Suggestions:
•Abolish the FIC guidelines and replace it with a more liberal investment policy to attract FDIs.
•Enhance the competitiveness of local businesses with training and new technology adoption to compete with foreign companies.

2.Industrial Coordination Act 1975 (ICA).

Background:
•To regulate the licensing in the manufacturing sectors in the 1970’s and 80’s during the Industrialization Plan by Tun Dr. Mahathir.
•The ICA requires manufacturing companies with shareholders' funds of RM2.5 million and above or engaging 75 or more full-time paid employees to apply for a manufacturing licence for approval by the Ministry of International Trade and Industry (MITI).

Arguments:
•The approval of manufacturing license is not transparent (case by case basis).
•Foreign investors will not invest in the country if their licenses are subjected to changes from time to time.

Suggestions:
•Abolish outdated and irrelevant restriction in the act.
•Abolish the Industrial Coordination Act.

Employees Provident Fund (EPF) Sucking your blood less now

2008-11-07T09:57:00.003+08:00

Employees Provident Fund (EPF) members will be able to benefit from the three percentage point reduction of their monthly contribution rate from January 2009.

In a statement yesterday, EPF said the reduction of the employees’ contribution from 11% to 8% would be made automatically for the ease of members and to facilitate implementation measures.

“This arrangement will be implemented until the December 2010 wage.” However, members who wish to maintain their 11% contribution rate can still do so by filling up Form KWSP 17A (AHL) and handing it to their employers for submission to EPF.

Finance Minister and Deputy Prime Minister Datuk Seri Najib Tun Razak announced recently that members could reduce their monthly contributions from 11% to 8% to give them more disposable income. The announcement was part of a stimulus package to help boost economic growth.

“The decision to reduce members’ statutory contribution rate was taken twice before in 2001 and in 2003 as part of economic stimulus packages,” said Nik Affendi.

EPF would be issuing a new monthly contributions schedule accordingly, he said. “Members and employers may obtain the new schedule and Form KWSP 17A (AHL) from all EPF branches or download them from our website at www.kwsp.gov.my from Dec 1 onwards,” he added.

View Points of Chinese
1. A waste of time to fill up form.
2. 3% is a small money.. don't bother with it.
3. Stupid policy as it does not help to boost economy.

View Points of Malay and Low Income Group
1. It will help to increase the disposable income, means more $$ in your pocket (although its little, but means a lot).
2. The employer contribution still the same, means u don't lose anything.
3. It was expected a big sum of $$ will go to local market consumption (boost local business operation).

04-11-2008: BNM spent US$12b to defend ringgit in Sept, says Moody’s

2008-11-06T11:40:00.001+08:00

Beware, your $$$ is going into the drain now.....

Bank Negara Malaysia (BNM) is estimated to have spent US$12 billion (RM42.4 billion) during September to defend the ringgit, said Moody’s Economy.com.

Moody’s said the ringgit was among Asia-Pacific currencies that had depreciated despite current account surpluses, the others being the Singapore dollar and Philippine peso.

“Sound current accounts may have created a bottom for these currencies and they have ‘only’ depreciated by 5% to 10% since June,” Moody’s Economy.com economist Tine Olsen said in her report yesterday.

She said other currencies in the middle group had fallen because of deleveraging, while those experiencing the biggest depreciation, including South Korea, Indonesia and India, also struggled with current account deficits.

Olsen said Asia-Pacific currency markets had been driven recently by the liquidity squeeze and by current accounts as risk-averse investors moved funds from high-risk markets to safe havens to avoid losses, and also to preserve liquidity.

These include the unwinding of carry trades — the repatriation of funds from high-interest countries to repay loans taken out in low-interest countries.

“As the liquidity crisis eases, investors turn their attention to economic fundamentals to determine the value of national currencies,” Olsen said.

She said the global economic slowdown had encouraged investors to avoid countries with deteriorating current accounts, as they feared export weakness would put downward pressure on currencies.

Olsen said running against the trend of currency markets was the Japanese yen, which is a global reserve currency. The yen has appreciated against the US dollar, but all other major regional currencies have fallen against the US dollar since June.

She said the Australian and New Zealand dollars had been battered in the markets since June, seeing depreciation of 35% and 27%, respectively.

“Monetary policy rates have come down and investors have deleveraged, making the two currencies less attractive than they were earlier.

“At the other end of the scale is the Japanese yen, with an appreciation of 10% due to its status as a safe haven and its role in the carry trade,” she said, adding that as uncertainty increased, investors commonly moved funds out of high-interest countries and paid off their low-interest yen-dominated loans.

Olsen said the forces behind exchange rate movements varied greatly, as were the responses by governments.

“An economic slowdown and looser monetary policy in New Zealand and Australia have reduced the carry trade: borrowing in a low-interest country such as Japan and investing in Australia and New Zealand is no longer as profitable.

“This was amplified by the liquidity squeeze. Interest rates have come down from 7.25% to 6% in Australia and from 8.25% to 6.5% in New Zealand. Investors may have also been discouraged by the current account deficits in these two countries,” she said.

Olsen said if investors began to worry about Australia’s current account deficit, the Australian dollar would be severely challenged in the near term.

She said the Reserve Bank of Australia (RBA) intervened three times in the Aussie market, purchasing the domestic currency two Fridays ago and again last Monday and Tuesday. It has been more than a year since the RBA intervened in currency markets.

Olsen said in Indonesia, by contrast, the central bank was intervening often as it was trying to keep the rupiah steady after the currency reached the psychologically important level of 10,000 rupiah per US dollar.

“With an inflation target of 4% to 5% and annual inflation at 13.6% in July on a year-ago basis, it appears Indonesia has abandoned its inflation target and now focuses on exchange rate stabilisation,” she said.

Olsen said the region’s most troubled currency was the Korean won as doubts about the state of the Korean current account and South Korean importers’ high exposure to the US dollar had prompted traders to stage what at times looked like a run on the currency.

“The government’s repeated assurance that its foreign reserves are healthy has not stopped the exit, and the won has depreciated more than 40% since the end of June.

“The drop appeared to have been halted this week (last week) by a smaller-than-expected current account deficit for September and a currency swap line with the US Federal Reserve. On Thursday, the Korean won jumped 14% as a result,” she said.

Olsen said on a crude scale, the yen’s 10% appreciation matched the depreciation of smaller currencies with no underlying current account problems.

“An exchange rate movement of 10% may therefore be assigned to increased uncertainty and the liquidity squeeze in global markets, and has happened regardless of the sign of the current account.

“How much of the remaining part of exchange rate movements can be assigned to the unwinding of carry trade and worries about the current account is harder to quantify,” she said.

Olsen said the depreciation of Australian and New Zealand currencies was mainly driven by carry-trade reversal, whereas the Korean and Indian currencies had been brought down by speculation about their current accounts.

“As credit markets thaw, currencies may be expected to reverse the 10% move, which was based on the liquidity squeeze.

“Currencies with underlying current account deficits face turbulence in the near future, as a global slowdown puts pressure on the trade balance. Finally, high-interest currencies may be further challenged by looser monetary policy,” she said.

Economic Stimulus Package for Malaysia (2008)

2008-11-05T20:52:00.001+08:00

Better “something” than “nothing”…

Following the footsteps of several major and regional economies, the Government unveiled an economic stimulus package (ESP)on Nov 4, 2008. The key measures include:
(i) a RM7b new Government spending package,
(ii) allowing workers to opt for lower EPF contributions of 8% for two years, and
(iii) liberalising building material industries, as well as foreign investment in commercial properties and the services sector.

These measures add to the long list of measures that the Government had put in place, first to help the economy – especially consumers – cope with inflationary pressures, and now to deal with recessionary pressures. Over the past three months, steps already announced included a string of reductions in fuel (petrol and diesel) prices to reflect falling crude oil prices, 100% guarantees on deposits, and an additional RM5b to Value Cap.

The Government also revised its 2009 key macroeconomic forecasts, for lower real GDP growth and higher budget deficits. Our 2009 growth forecast is “stable” but under “negative watch” in view of the need to continuously assess the:
(i) effectiveness and execution of the ESP,
(ii) performance of the global economy, and
(iii) developments on commodity prices.

Perak Sultan warns against extreme political actions

2008-11-05T16:25:00.002+08:00

All extreme and excessive political actions must cease immediately for the sake of the country's well-being, Sultan of Perak Sultan Azlan Shah said.

The country’s peace must not be sacrificed because of certain leaders’ political ambitions.

"The interest of the people who voted for the government needs to be given priority," he said.

He said this after receiving a memorandum from Gagasan Melayu Perak president Datuk Seri Dr Mohd Helmi Ismail, who pledged their loyalty to the Sultan at the Istana Iskandariah on Wednesday.

Sultan Azlan said although Malaysia was a multi-racial country, the country was still based on the history, political evolution and spirit of nationalism of the Malays.

He stressed that the Malays needed an assurance to ensure their status as natives as enshrined in the Federal Constitution was not threatened.

He also said that the rights of other races are protected and acknowledged under the Constitution.

"It is the understanding and agreement under the social contract that enables the country to be successful, harmonious and stable," he said.

President Barack Obama for USA

2008-11-05T16:16:00.006+08:00

Remarks of President-Elect Barack Obama-as prepared for delivery
Election Night
Tuesday, November 4th, 2008
Chicago, Illinois

If there is anyone out there who still doubts that America is a place where all things are possible; who still wonders if the dream of our founders is alive in our time; who still questions the power of our democracy, tonight is your answer.

It's the answer told by lines that stretched around schools and churches in numbers this nation has never seen; by people who waited three hours and four hours, many for the very first time in their lives, because they believed that this time must be different; that their voice could be that difference.

It's the answer spoken by young and old, rich and poor, Democrat and Republican, black, white, Latino, Asian, Native American, gay, straight, disabled and not disabled - Americans who sent a message to the world that we have never been a collection of Red States and Blue States: we are, and always will be, the United States of America.

It's the answer that led those who have been told for so long by so many to be cynical, and fearful, and doubtful of what we can achieve to put their hands on the arc of history and bend it once more toward the hope of a better day.

It's been a long time coming, but tonight, because of what we did on this day, in this election, at this defining moment, change has come to America.

I just received a very gracious call from Senator McCain. He fought long and hard in this campaign, and he's fought even longer and harder for the country he loves. He has endured sacrifices for America that most of us cannot begin to imagine, and we are better off for the service rendered by this brave and selfless leader. I congratulate him and Governor Palin for all they have achieved, and I look forward to working with them to renew this nation's promise in the months ahead.

I want to thank my partner in this journey, a man who campaigned from his heart and spoke for the men and women he grew up with on the streets of Scranton and rode with on that train home to Delaware, the Vice President-elect of the United States, Joe Biden.

I would not be standing here tonight without the unyielding support of my best friend for the last sixteen years, the rock of our family and the love of my life, our nation's next First Lady, Michelle Obama. Sasha and Malia, I love you both so much, and you have earned the new puppy that's coming with us to the White House. And while she's no longer with us, I know my grandmother is watching, along with the family that made me who I am. I miss them tonight, and know that my debt to them is beyond measure.

To my campaign manager David Plouffe, my chief strategist David Axelrod, and the best campaign team ever assembled in the history of politics - you made this happen, and I am forever grateful for what you've sacrificed to get it done.

But above all, I will never forget who this victory truly belongs to - it belongs to you.

I was never the likeliest candidate for this office. We didn't start with much money or many endorsements. Our campaign was not hatched in the halls of Washington - it began in the backyards of Des Moines and the living rooms of Concord and the front porches of Charleston.

It was built by working men and women who dug into what little savings they had to give five dollars and ten dollars and twenty dollars to this cause. It grew strength from the young people who rejected the myth of their generation's apathy; who left their homes and their families for jobs that offered little pay and less sleep; from the not-so-young people who braved the bitter cold and scorching heat to knock on the doors of perfect strangers; from the millions of Americans who volunteered, and organized, and proved that more than two centuries later, a government of the people, by the people and for the people has not perished from this Earth. This is your victory.

I know you didn't do this just to win an election and I know you didn't do it for me. You did it because you understand the enormity of the task that lies ahead. For even as we celebrate tonight, we know the challenges that tomorrow will bring are the greatest of our lifetime - two wars, a planet in peril, the worst financial crisis in a century. Even as we stand here tonight, we know there are brave Americans waking up in the deserts of Iraq and the mountains of Afghanistan to risk their lives for us. There are mothers and fathers who will lie awake after their children fall asleep and wonder how they'll make the mortgage, or pay their doctor's bills, or save enough for college. There is new energy to harness and new jobs to be created; new schools to build and threats to meet and alliances to repair.

The road ahead will be long. Our climb will be steep. We may not get there in one year or even one term, but America - I have never been more hopeful than I am tonight that we will get there. I promise you - we as a people will get there.

There will be setbacks and false starts. There are many who won't agree with every decision or policy I make as President, and we know that government can't solve every problem. But I will always be honest with you about the challenges we face. I will listen to you, especially when we disagree. And above all, I will ask you join in the work of remaking this nation the only way it's been done in America for two-hundred and twenty-one years - block by block, brick by brick, calloused hand by calloused hand.

What began twenty-one months ago in the depths of winter must not end on this autumn night. This victory alone is not the change we seek - it is only the chance for us to make that change. And that cannot happen if we go back to the way things were. It cannot happen without you.

So let us summon a new spirit of patriotism; of service and responsibility where each of us resolves to pitch in and work harder and look after not only ourselves, but each other. Let us remember that if this financial crisis taught us anything, it's that we cannot have a thriving Wall Street while Main Street suffers - in this country, we rise or fall as one nation; as one people.

Let us resist the temptation to fall back on the same partisanship and pettiness and immaturity that has poisoned our politics for so long. Let us remember that it was a man from this state who first carried the banner of the Republican Party to the White House - a party founded on the values of self-reliance, individual liberty, and national unity. Those are values we all share, and while the Democratic Party has won a great victory tonight, we do so with a measure of humility and determination to heal the divides that have held back our progress. As Lincoln said to a nation far more divided than ours, "We are not enemies, but friends...though passion may have strained it must not break our bonds of affection." And to those Americans whose support I have yet to earn - I may not have won your vote, but I hear your voices, I need your help, and I will be your President too.

And to all those watching tonight from beyond our shores, from parliaments and palaces to those who are huddled around radios in the forgotten corners of our world - our stories are singular, but our destiny is shared, and a new dawn of American leadership is at hand. To those who would tear this world down - we will defeat you. To those who seek peace and security - we support you. And to all those who have wondered if America's beacon still burns as bright - tonight we proved once more that the true strength of our nation comes not from our the might of our arms or the scale of our wealth, but from the enduring power of our ideals: democracy, liberty, opportunity, and unyielding hope.

For that is the true genius of America - that America can change. Our union can be perfected. And what we have already achieved gives us hope for what we can and must achieve tomorrow.

This election had many firsts and many stories that will be told for generations. But one that's on my mind tonight is about a woman who cast her ballot in Atlanta. She's a lot like the millions of others who stood in line to make their voice heard in this election except for one thing - Ann Nixon Cooper is 106 years old.

She was born just a generation past slavery; a time when there were no cars on the road or planes in the sky; when someone like her couldn't vote for two reasons - because she was a woman and because of the color of her skin.

And tonight, I think about all that she's seen throughout her century in America - the heartache and the hope; the struggle and the progress; the times we were told that we can't, and the people who pressed on with that American creed: Yes we can.

At a time when women's voices were silenced and their hopes dismissed, she lived to see them stand up and speak out and reach for the ballot. Yes we can.

When there was despair in the dust bowl and depression across the land, she saw a nation conquer fear itself with a New Deal, new jobs and a new sense of common purpose. Yes we can.

When the bombs fell on our harbor and tyranny threatened the world, she was there to witness a generation rise to greatness and a democracy was saved. Yes we can.

She was there for the buses in Montgomery, the hoses in Birmingham, a bridge in Selma, and a preacher from Atlanta who told a people that "We Shall Overcome." Yes we can.

A man touched down on the moon, a wall came down in Berlin, a world was connected by our own science and imagination. And this year, in this election, she touched her finger to a screen, and cast her vote, because after 106 years in America, through the best of times and the darkest of hours, she knows how America can change. Yes we can.

America, we have come so far. We have seen so much. But there is so much more to do. So tonight, let us ask ourselves - if our children should live to see the next century; if my daughters should be so lucky to live as long as Ann Nixon Cooper, what change will they see? What progress will we have made?

This is our chance to answer that call. This is our moment. This is our time - to put our people back to work and open doors of opportunity for our kids; to restore prosperity and promote the cause of peace; to reclaim the American Dream and reaffirm that fundamental truth - that out of many, we are one; that while we breathe, we hope, and where we are met with cynicism, and doubt, and those who tell us that we can't, we will respond with that timeless creed that sums up the spirit of a people:

Yes We Can. Thank you, God bless you, and may God Bless the United States of America.

Ten ways to boost competitiveness (The Star)

2008-10-23T12:16:00.001+08:00

# P. Gunasegaram is managing editor at The Star. This article is an abridged version of a talk he gave recently at Khazanah Nasional’s Megatrends Forum.

Education, trade issues among important factors

MALAYSIA needs to focus on the basics to increase overall competitiveness. Here are 10 ways in which the country can improve its overall competitiveness. Where possible the factors are linked to the global credit crisis.

1. Education. No country has managed to climb up the competitiveness ladder without producing a core group of highly educated and competent people in all areas of the economy. The main problem is the poor and deteriorating public school system caused by a lack of good, motivated teaching staff, not facilities. It calls for a total overhaul of how teachers are recruited, trained and motivated.

Throughout all my school years and after, I have noticed that when the headmaster was good, so was the school — no matter the lack of resources or the poor calibre of teaching staff. An immediate measure will be to retrain headmasters and formulate key performance indicators for them, and empowering them.

2. Opening up the Economy. We should encourage foreign direct investments, not only in manufacturing but also in services too, for example in tourism and education. But I am not a fan of attracting excessive foreign portfolio funds into the stock and money markets. Such short-term inflows can flow out just as easily and cause major instability when they do. Witness the steeper fall in Asian stock markets recently despite the main problem being in the US. We should put a lower cap on foreign portfolio investments.

3. Removing trade barriers. Trade barriers make us rather inefficient. For instance, we are without a doubt the most inefficient car producer in the world because of the low scale of manufacture. The motor industry survives simply because of high tariffs levied on imports and therefore there is no push to get the industry to either become more competitive or to merge with other large-scale manufacturers to get access to technology and scale.

Being able to source anything from anywhere in the world will make the country more competitive and will force industries and services to come up to international standards in terms of quality and price. Those days, we had Penang as a free port, now we have Pulau Langkawi, and I think Pulau Tioman. Why not make the whole of Malaysia free? It would help bring down prices.

4. Judicious removal of subsidies. Subsidies, especially of petroleum and related products, are not only a huge cost to the Government but represent a serious misallocation of resources which could have been used for other purposes. Evidence is that subsidising oil prices helps much more the higher income group which uses a lot more of the dwindling resource than the lower income group. Painful as it may initially, subsidies must be unwound.
The problem of a poor and deteriorating public school system requires an overhaul of how teachers are recruited, trained and motivated

5. Revising the tax structure and collection. Our personal income tax and corporate tax rates are still too high relative to many other countries. At the same time, we give away far too many tax incentives to foreign investors. In some cases, these tax benefits are not even effectual because the foreign companies pay taxes in their home countries — we end up letting other countries collect the taxes instead.

We can lower tax rates but at the same time remove excessive incentives to capture tax income. Inland Revenue has to pay more attention to getting more people into the tax net by looking at the assets they own and asking them to account for how they got it if they don’t pay taxes.

Also, to curb speculation on the stock market, capital gains on the stock market and on derivative products should be taxed, with the rate going down the longer the investments are held. In the light of the current crisis, this also provides an audit trail of transactions and may prevent abuse through financial engineering.

6. Tightening up contracting and procurement procedures. During times of crisis, we have this habit of rushing out to cut projects, some of which may actually be badly needed. It is much better to take this time of crisis to tighten up contract and procurement procedures. Instead of the fat margins some of the suppliers have been given in the past, squeeze the margins because there is real hunger for business and there is a lot of idle capacity. I dare say if we do that we will still have the money to undertake the projects without having to scrap any. The crisis is the perfect opportunity to tighten up contract and procurement procedures.

7. Cutting red tape. This is a perennial problem and more should be done to facilitate approvals for businesses and streamline licensing requirements. Local councils should be made to function more efficiently while easier approvals for knowledge workers should be given. It is ironic that foreign labourers find it much easier to get entry as workers when compared to highly qualified white-collar professionals.

8. Improving infrastructure. I really don’t think we have first world infrastructure all over the place. Case in point is the very poor Kuala Lumpur public transport system which had sporadic and spotty improvements that still could not keep pace with the requirements of commuters. What is needed is a good demographic study to ascertain future needs and a plan which fits in with that.

The overall effort should include a comprehensive programme in all key cities for working space, living and recreational areas and for a good transport system to link all of them. The current crisis is an opportunity to engage in some counter-cyclical spending to keep economic activity up. The right kind of investment in infrastructure spending will improve our competitiveness considerably in future years.

9. Refining New Economic Policy requirements and reviewing others. I recall after the 1985 recession the Government relaxed equity and other requirements under the NEP for a range of investments. That will make us more competitive in terms of attracting new investments. Extending those incentives to local companies will also help promote economic activity and make them more competitive as well.

Meantime, we must hold all contractors and service providers — whether bumiputra or not, whether politically linked or not — to high standards of work and completion. Too much money is squandered by improper monitoring.

10. Becoming less obsessed with racial quotas, both implicit and explicit. There are many quotas, some stated and others not. If you look at government service, one can’t help but note that there is a preponderance of bumiputras at all levels. Ditto for government universities, and many government companies. We really need to make better use of all the manpower available in the country. We must move towards a performance-driven culture using all resources available to us.

A look at financial developments and activity in some stock markets around the world Wednesday

2008-10-23T12:09:00.001+08:00

MUNICH, Germany -- The German state of Bavaria's finance minister resigned, accepting his share of responsibility after BayernLB, a regional public-sector bank, said it would seek 5.4 billion euros ($7.2 billion) in federal government aid. Bavaria's state government owns half of BayernLB; the other half is held by municipally backed local banks. Germany's DAX closed down 213.34 points, or 4.5 percent, at 4,571.07.

PARIS -- France's prime minister says a newly created and state-backed refinancing company will start doling out urgent loans to French banks by the end of the week. The French refinancing firm known as SFRE was set up to support French banks short of liquidity amid the global financial crisis. The French government has pledged 40 billion euros ($54 billion) to provide banks with extra capital as part of an urgent plan to cope with the financial sector meltdown. The CAC-40 in France finished 177.22 points, or 5.1 percent, lower at 3,298.18.

MOSCOW -- Russian stocks shed the previous day's gains as shares in energy companies followed sliding oil prices down again. The U.S.-dollar denominated RTS index closed 7.2 percent lower at 665.8 points while the MICEX index dropped 3.7 percent to 628.1. Russian energy stocks fell sharply on the MICEX stock exchange with oil firms Tatneft and Transneft 7.5 and 5.1 percent lower, respectively. Gas giant Gazprom lost 6.3 percent.

SEOUL, South Korea -- South Korean stocks dropped sharply amid further heavy selling by foreign investors that has helped push share prices down 40 percent this year after years of strong gains. The Korea Composite Stock Price Index fell 61.51 points, or 5.1 percent, to 1,134.59. At one point, the Kospi fell as much as 8.4 percent before recovering some losses.

ISLAMABAD, Pakistan -- Pakistan sought help from the International Monetary Fund to avoid defaulting on billions of dollars in loans and skirt a financial crisis brought on by high fuel prices, dwindling foreign investment and soaring militant violence. Pakistani officials had previously said turning to the IMF would be a last resort.

TOKYO -- Japanese stocks tumbled as spreading pessimism over corporate earnings and a strengthening yen sent the benchmark index tumbling almost 7 percent. Stocks opened lower following an overnight retreat on Wall Street, but they widened losses in the afternoon on a flurry of bad news that aggravated fears about the global slowdown. Japan's Nikkei 225 stock average fell for the first time in three days, dropping 631.56 points, or 6.79 percent, to 8,674.69

BUENOS AIRES, Argentina -- Argentina's benchmark stock index plunged Wednesday as investors worried the president's plan to nationalize private pension funds would drain companies' access to private capital. The Merval index fell 10 percent, adding to 11 percent losses on Tuesday, when President Cristina Fernandez unveiled plans to take over $30.1 billion in private pension fund assets.

SHANGHAI, China -- Chinese shares sank on heavy selling of power producers and others reporting weaker-than-expected earnings. The benchmark Shanghai Composite Index fell 3.2 percent, or 62.71 points, to 1,895.82. The smaller Shenzhen Composite Index slipped 1.6 percent to 510.66. Declines were seen across the board, with energy and commodity-related shares falling sharply on expectations of weak demand. Chinese President Hu Jintao expressed concerns over the ailing U.S. financial system in a phone conversation with U.S. President George W. Bush, state media reported. China, which holds hundreds of billions of dollars in U.S. government bonds, has enacted a growing number of measures to stimulate economic growth as its crucial export sector suffers from downturns in the U.S. and Europe.

SAO PAULO, Brazil -- The Brazilian government announced it will allow two state-controlled banks to buy stakes in private financial institutions, hoping to limit damage from the global crisis. The Banco do Brasil and Caixa Economica Federal will be able to buy stakes in other banks, insurance companies and other private institutions needing aid, Finance Minister Guido Mantega said Wednesday. The institutions previously were not allowed to seek help from the state-controlled banks. Trading was automatically suspended for 30 minutes after the benchmark Ibovespa index dove 10 percent and fears mounted that a global recession could stall growth in Latin America's largest economy.

WASHINGTON -- World leaders will meet Nov. 15 in Washington to address the global financial crisis -- the first in a series of summits to mitigate what economists predict could be a long and deep downturn. In making the announcement, White House spokeswoman Dana Perino said the first meeting will focus on the underlying causes of the financial crisis, the global response and the principles that should guide any reforms. The summit will bring together leaders of the Japan, the United Kingdom, France, Germany, Italy, Canada and the United States, the European Union China, Brazil, India, Russia, South Korea and other major economies. She said the White House would seek input from the winner of the U.S. presidential election who will take office on Jan. 20.

MEXICO CITY -- Mexico's peso tumbled to 13.6 to the dollar and the stock market dropped 7 percent, despite the central bank's actions to stabilize the economy. The bank has been auctioning off reserves since the peso hit a record low of 14 to the dollar this month, after trading in early August at under 10 to the dollar. Mexico's central bank has vowed to auction $400 million every day at the previous day's closing price plus 2 percent, and has converted $12 billion to pesos since Oct. 8 in attempts to prop up the currency. The IPC index fell 7 percent to 1,415.93.

LONDON -- British Prime Minister Gordon Brown acknowledged for the first time Wednesday that the world economic downturn is likely to cause a recession in the United Kingdom, the U.S and other countries. Brown's comments during his weekly question-and-answer session at the House of Commons followed a warning Tuesday from Bank of England Governor Mervyn King that Britain is probably entering a recession as a result of a squeeze on pay, a lack of available credit and a likely prolonged slowdown in domestic demand. Later, Britain's FTSE 100 index of leading shares closed down 189.84 points, or 4.5 percent, at 4,040.89.

MCA PARTY ELECTION RESULT

2008-10-19T21:06:00.002+08:00

President: Ong Tee Keat
Deputy president: Dr Chua Soi Lek
Vice-presidents are Kong Cho Ha, Liow Tiong Lai, Dr Ng Yen Yen and Tan Kok Hong

The 25 newly-elected central committee members are:

Lee Wei Kiat, Wong Foon Meng, Tan Chai Ho, Tan Cheng Liang, Dr Hou Kok Chung, Lee Chee Leong, Gan Ping Sieu, Yu Chok Tow, Wong Nai Chee, Lee Sing Chooi, Wee Jeck Seng, Gan Tian Loo, Dr Yeow Chai Thiam, Chong Itt Chew, Hoh Khai Mun, Ti Lian Ker, Liew Yuen Keong, Wong Mook Leong, Paul Kong Sing Chu, Edward Khoo Keong Hai, Teh Siew Kiong, Loh Seng Kok, Wong Siong Hwee, Dr Por Choo Chor and Loke Yuen Yow.

US Gov't eyes plan to take ownership stakes in banks

2008-10-13T14:08:00.001+08:00

WASHINGTON (AP) -- Treasury Secretary Henry Paulson told international leaders on Sunday that isolationism and protectionism could worsen the spreading financial crisis. With a new trading week dawning, U.S. lawmakers urged quick action by the Bush administration on measures to make direct purchases of bank stock to help unlock lending.

Sen. Chuck Schumer, chairman of the Joint Economic Committee, said an administration proposal to inject federal money directly into certain banks, in effect partially nationalizing the banking system, "is gaining steam."
"I am hopeful that tomorrow, the Treasury will announce that they're doing it. And they have to do it quickly ... markets are waiting," Schumer, D-N.Y., said.
The administration has not indicated when it would announce its next steps.
Democrats also are lining up behind House Speaker Nancy Pelosi's plan to bring lawmakers back to Capitol Hill after the Nov. 4 election to work on a second economic relief plan. The idea is "give the middle class and the average citizen the same kind of relief that we try to give the financial sector," said Democratic Rep. Barney Frank of Massachusetts, chairman of the House Financial Services Committee.
Top Democrats are suggesting a $150 billion measure that would extend jobless benefits, provide more money for food stamps and finance some construction projects, such as rebuilding bridges and roads. It would also include either a tax rebate or tax cut.
Rep. Roy Blunt of Missouri, the second-ranking House Republican, said he would help on a plan "that makes sense" but is not laden with huge public works projects or bailouts for states that overspent on social programs.
In another step aimed at easing the financial crisis, the Federal Reserve on Sunday approved the $12.2 billion acquisition of troubled Wachovia Corp. by Wells Fargo & Co. Wachovia is the latest in a string of major banks and financial institutions that have been felled by the financial crisis. The Fed action was expected.
As the International Monetary Fund and World Bank held their annual meetings over the weekend, Paulson warned the bank's policy-setting committee of the dangers of "inward-looking policies."
"Although we in the United States are taking many extraordinary measures to ease the crisis, we are not pursuing policies that would limit the flow of goods, services or capital, as such measures would only intensify the risks of a prolonged crisis,"

Economic Calendar

2008-10-13T14:01:00.001+08:00

Budget 2009 Highlights

2008-10-13T13:52:00.002+08:00

Budget 2009 was presented on 29 Aug 08 by the Prime Minister and (then) Finance Minister YAB Dato’ Seri Abdullah Ahmad Badawi in Parliament. Themed “A Caring Government,” Budget 2009’s three specific strategies focus on enhancing the wellbeing of all Malaysians, developing quality human capital and further strengthening our nation’s economic resilience to mitigate the adverse impact of an increasing challenging external environment. A broad range of measures will be implemented in this Budget to reduce the impact of higher cost of living, particularly for the lower income group and the vulnerable.
Budget Allocation
The overall federal government revenue for year 2008 is RM 161.6bn and expenditure is RM196.9bn. The deficit for 2008 is estimated to increase to 4.8% due to an additional allocation of RM22.1bn this year for food and fuel subsidies. Committed to reducing the fiscal deficit to 3.6% in 2009, the government believes that the high fiscal deficit is a one-off necessity.
For Budget 2009, RM207.9bn will be allocated for government expenditure, which is 5.1% higher than the allocation for 2008. Of the total allocation, RM154.2bn will be used for operating expenditure and RM53.7bn for development expenditure.
The Malaysian economy in 2009 is projected to grow by 5.4%. The key driver for economic growth is the oil and gas industry, tourism, transportation, finance and banking, and ICT related industries. The key measures and steps that were outlined by the government in Budget 2009 are as below:
Social Safety Net
The government has raised the eligibility criteria for welfare assistance under the Welfare Department and allocated RM500mn. It is expected that eligible recipients will rise to 110,000 households and 40,000 senior citizens.
Government pensioners who have served at least 25 years upon retirement will receive no less than RM720 monthly, which will involve RM140mn allocation and benefiting 75,00 retirees.
On top of that, the government also set up an RM25mn special fund to channel financial assistance to victims of calamities, such as floods and fire. The government also encourages the private sector to set up more “Rumah Tunas Harapan” and will increase the allowance of caregivers up to RM1,000 monthly.
Eradicating Poverty
The housing assistance programme is one of the tools to eradicate poverty and will be allocated RM 50mn to build 1,400 new houses and repair 1,000 houses for hardcore poor, senior citizens, disabled and single parents. To reduce the burden of lower income groups, the government will bear the cost of electricity bills for households which incur monthly electricity bills of RM20 or less. 1.1mn households are expected to benefit from this measure. Additionally, Sabah and Sarawak will be allocated RM580mn and RM420mn respectively to improve basic amenities such as electricity, water and rural roads.
Increasing Disposable Income
The purchasing power of lower middle income groups was badly affected by the high inflation rate. Therefore, the government proposed the current tax rebate to be increased to RM400 for those taxable income of RM35,000 and below. It is expected that 100,000 tax payers will be out of the tax net.
Moreover, the government also proposed that the highest marginal tax rate for individuals be reduced to 27% and marginal tax rate of 13% will be reduced to 12% too. Civil servants will receive a one-month bonus, subject to a minimum of RM1,000 for 2008 as an appreciation of increasing productivity.
Improving Public Transportation
The government will continue to encourage greater utilization of public transportation and believes that a more efficient, reliable and integrated public transportation is needed to provide seamless travel and greater service frequencies. To further improve the efficiency of public transportation, RM35bn allocation will be expanded during 2009 to 2014 to enhance the capacity of existing rail services, build new rail services and tracks, increase the number of buses and provide better infrastructure facilities. RM3bn additional soft loans were also provided under the Public Transportation Fund and a Public Land Transportation Commission will be established to oversee overall public transportation services by mid 2009.
Therefore, the government agreed to provide 200 additional buses to RapidPenang to service 14 new routes in Penang. It is expected that usage will be increased to 120,000 passengers daily. Other key measures are toll charges for all buses will be reduced by 50% and road tax for all buses and taxi operators will be reduced to RM20 a year.
The existing LRT system in Klang Valley will be extended by 30km and 35 train carriages for the Kelana Jaya line worth RM1.3bn will be fully operational by 2010. A new LRT line will also be built along a 42km route from Kota Damansara to Cheras. The commuter rail services will be upgraded too. An additional 13 new units of commuters will be operational by 2011, with an expanded rail services network of 7.5km for the Sentul-Batu Caves line by 2010. Sam, pls insert Komuter train here
Food Security
RM5.6bn is provided under the national food security policy to implement several agriculture programmes to ensure adequate food supply. To increase fish landings, RM300 mn is allocated for cost of living allowance to fisherman and fish landing incentives.
To increase poultry output, the expansion of chicken and duck farms will be given a Reinvestment Allowance of 60% for a period of 15 years. RM1bn will be allocated for 220,000 padi farmers to increase padi production and 1,300 hectares of abandoned land have been identified for padi and other food production. The government also proposed that import duty on fertilizers and pesticides be abolished.
Health Services
RM 13.7 bn is allocated in 2009 to enhance health facilities and provide equipments, increase supply of medicines, develop human resources and build more hospitals. Other than that, the government also announced that the excise duty on cigarettes will be increased by 3sen to 18sen per stick.
Improving Public Amenities
RM1.8bn will be provided to increase basic amenities and infrastructure in rural areas. For Sabah and Sarawak, RM3bn and RM3.3bn allocations were given respectively for various infrastructure projects.
Enhancing Training and Skills Programmes
RM2.4bn is allocated to enhance facilities as well as undertake training and skills programmes. In addition, the government will increase the number of nurses in public hospitals by allocating RM70mn to train 7,600 nurses.
Improving Quality of Education
RM31mn will be allocated to the Education Ministry benefiting 5.8mn students. 110 primary schools and 181 secondary schools will be built in near term. In addition, RM14.1bn was allocated for the Higher Education Ministry to improve the quality of learning.
New Economic Sectors
New selected regional services such as Islamic finance, business process outsourcing, resource based industries such as petroleum, higher value added manufacturing such as biotechnology will be giving significant opportunities for growth in the Malaysian economy.
Economic Corridors
RM6bn is provided in the 2009 budget for development expenditure of the corridors. An additional allocation of RM30mn is provided under the Strategic Investment Fund in Iskandar Malaysia.
National Energy Plan
A comprehensive national energy plan will be outlined to support the long term energy needs. Renewable energies equipment will be exemption import duty and sales tax.
Ensuring Public Safety
RM5.4bn is allocated in the Budget 2009 to enhance the capacity of the Royal Malaysia Police (PDRM). The allocation will be used to build more police stations and train/hire more Polices.
As a conclusion, the government was seen as responsible to the concerns of the rakyat and has taken measures to lighten the burden of all Malaysians, particularly the lower income group. Support and assistance approach will improve the quality of life and enables all Malaysians to enhance their productivity.

马来西亚2009年财政预算案

2008-10-13T13:51:00.001+08:00

首相兼财政部长拿督斯里阿都拉巴达威今年八月在国会提呈的2009年财政预算案内，主轴及重心被定位于确保全民和谐共处、建设人文发展环境以及强化国家抗御能力。2009年财政预算案被各界给予高度评价，更体现首相一贯的务实与亲民政策。今年的财政预算案主要就是围绕着增加低收入群的福利、改善交通网络及提升全民教育的素质。
在高油价及高通膨年代，政府为了照顾全民福利，便推动了提高低收入群的福利及妥善策划未来的交通规划，因此这一次的财政预算案被评为连续12年来的扩张式“爱心”预算案，但是却因此缺少了明确的商界税务削减或津贴。
联邦政府今年的总收入是1616亿令吉，相等于9.1% 的收入增长。首相并预测在2009年的总收入将会增加至1762亿令吉，或相等于9.1% 的增长率。政府也预测收入增长的主要贡献者是石油所得税及公司税。除此之外，政府也预计2009年的经济成长可达到5.4%，而通膨率将会保持在稳定的水平。图表1显示2008-2009的联邦政府收入。
图表1：联邦政府收入2008-2009
令吉（百万）增长（%）占有率（%）
2008 2009# 2008 2009# 2008 2009#
税收 107,737 124,379 13.2 15.4 66.7 70.6
*直接税 77,579 92,126 11.8 18.8 48.0 52.3
•公司 33,325 35,780 3.7 7.4 20.6 20.3
•石油所得税 24,511 35,826 19.8 46.2 15.2 20.3
•个人 14,593 15,399 25.1 5.5 9.0 8.7
*间接税 30,158 32,252 17.0 6.9 18.7 18.3
•消费税 10,369 11,038 15.3 6.5 6.4 6.3
•营业税 7,580 8,059 14.1 6.3 4.7 4.6
非税务收入 53,821 51,841 20.4 3.7 33.3 29.4
*执照/准证 11,779 13,059 24.9 10.9 7.3 7.4
*投资收入 38,874 35,442 20.0 -8.8 24.1 20.1
收入总额 161,558 176,220 15.5 9.1 100 100
2008/2009 经济报告书。(# 预算估计，不包括2009年税收)

2009年财政预算案也详细的探讨了联邦政府在近年的财务状况。我国在2008年的赤字扩张至国内生产总值的4.8%，并且超出了政府在一年前所定下缩减至3.1%的目标。由于政府估计到世界原油价格飙升所导致的后遗症，所以适度的调低在2009年的财政赤估计到3.6%，并希望能够让经济平衡增长。

由于国际原油及基本粮食的价格都已经大幅度飚高，钢铁、洋灰及其他的建筑材料也都涨价了，所以这都致使政府的营运开销和发展开销急速的增加了。应此，政府使用了适度的财政赤字及增加发展拨款来确保食物保证措施与燃油津贴。政府的举动是希望能够继续协助人民渡过经济难关。图表2显示了联邦政府财务状况。

图表2：联邦政府财务状况2008-2009
令吉（百万）增长（%）
2008 2009# 2008 2009#
税收 161,558 176,220 15.5 9.1
营业费用 150,953 154,170 22.6 2.1
目前盈余 10,605 22,050 -36.9 107.9
发展费用总额 46,258 51,729 14.0 11.8
扣：贷款收回 1,191 1,229 -61.6 3.2
发展费用净余 45,067 50,500 20.3 12.1
全面余额 -34,462 -28,450
占国内生产总值巴仙率 -4.8 -3.6
2008/2009 经济报告书。(# 预算估计，不包括2009年税收)

Critical Questions on Government Efficiencies

2008-10-13T13:48:00.000+08:00

1. Regarding to Temporary Occupancy Licenses (TOL) land issues,
a. Is there any progress on converting the idle land to agricultural land?
b. What is the biggest hurdle in the TOL land issues and what are PEMUDAH strategies?
c. Is PEMUDAH going to unify the state land regulations among states in Malaysia?
2. Efficiency in the government policies :
a. What is the progress on liberalization of FIC Guidelines, Guidelines on Foreign Participation in the Distributive Trade Services and the 30% Bumiputera equity restriction?
3. Business licensing issues:
a. Does the government intend to simplify the business licensing application and approval process to less than 5 licenses and in less than 1 week time? Ex. The grocery shop need to get 11 licenses to operate and hotel need at least 30 licenses to operate are not efficient and may cause corruption practises.
4. Halal Industry Issues:
a. The industry players are finding it tough as there are no clear indications on the Halal enforcement and clear guidelines or regulations on Halal issues. What is the role of PEMUDAH on facilitating the development of the industry?

Petrol Hike Response

2008-10-13T13:43:00.000+08:00

July 5, 2008, Malaysian witnessed the real impact of the rapid increase in world crude oil price. After detailed study and serious consideration, the federal government decided to raise the price of petrol and diesel at the pump. The new price will be a 40% increase for petrol to RM2.70 a litre and 60% increase for diesel to RM2.58 a litre. Although the action was seen as a political suicidal act, but the truth is that since the second half of 2007, the world crude oil price has been rose up to 150%. The realities were the government are unable to allocate more subsidies which were ballooned from RM30bil previously to as high as RM50bil now.
Although the Government action on reducing the petrol subsidy will be giving a direct impact to the daily lives of the Malaysian, but the government did not forget their duties to help the citizens. A number of actions have been taken to ease the burden of Malaysian and these temporary measures were RM625 cash rebate for car owners, RM150 cash rebate for motorcyclist, RM200 road tax reduction for vehicle more than 2000cc. The government also initiated a few rules to cut the government officer’s entertainment allowance in order to reduce the federal government expenditure. After the reform of fuel subsidies, it is expected that the government will save about RM13.7bil. The following chart 1 shows the new allocation for people centric projects from the savings.
Chart 1
Projects New Allocation
National food security policy RM 4.0 bil
cooking oil subsidy RM 1.5 bil
imported rice subsidy for Sabah and Sarawak RM 0.4 bil
flour subsidy RM 0.2 bil
bread subsidy RM 0.1 bil
petrol, diesel and gas subsidy and rebate RM 7.5 bil
Total RM13.7bil
(Source: Prime Minister Office, Malaysia)

Nevertheless, list of action taken above was just a temporary measure before a more comprehensive relief packages which will be released on the Budget 2009 in mid August. Therefore, we suggest the government to kindly provide more efficient relief packages to help Malaysian in riding out of the high crude oil price era. In the mean time, we also must not forget and ignore the poor family and the hardcore poor families which were facing the most difficulties in daily living among Malaysian.
According to Department of Statistics survey in 2007, the country currently have 5.8 million households, and it is expected that 8.6% of household are having total income less than RM1,000. We hope that the Government will give more attention to these 500,000 poor households. We also recommended the Government through the Department of Social welfare, set up an efficient mechanism to select these poor and hardcore poor families and allocate them a sum of cash assistance. In the same time, the government must also provide technical and vocational training to these poor and hardcore poor family members. The opportunities in gaining skills will allow them to increase their family income and to an extent, they will be able to gain an opportunity in conducting small-scale business activities.
We have to admit that there are structural inefficiencies in the federal government administration. The public service delivery system was deeming to be inefficient. Therefore, we urge for a closer working relationship between the Chief Secretary of the government and the Special Task Force to facilitate business (PEMUDAH). With a joint cooperation from government and private sectors, we hope that they will be able to remove the barricades in government services and ultimately removing obstacles that affect the inefficiencies in the public delivery system and services.
Government must make a clear stand on removing the outdated government procedures, reducing bureaucracy and red tape. We believe that the simplification of administrative process is the best way to reduce corruption practices and eventually will help the citizens and government in savings costs. The best solution here is to let the accountants and auditors to re-assess the federal government operating costs and development costs to reduce or cut unnecessary spending. We believe that by ensuring a lower expenditure and a higher taxation income will lead to a better government’s financial and economy position.
In order for the citizens to adapt to the changes and switch to use public transportation, we urge the government to set up a drastic plan and solution to revamp the public transportation system. Syarikat Prasarana Negara Berhad (SPNB) did a survey after the oil prices hike and the survey shows that public bus user rose by 7.5 %, while PUTRA Light Railway Transit (LRT) users increase 3.9% in a week time. We believe more citizens will choose the public transportation in the long run. Therefore, government must seriously look into setting up a more integrated and user friendly transportation system to ease the burden of citizens on inflation and price hike.
Due to bureaucracy, the public transportation system is currently under jurisdiction of more than 10 government departments. We agreed the government’s move in setting up the Cabinet Committee on public transport to enable a standardize policy management unit and also to establishment a one-stop service centre to focus on all public transport activities. In the long run, the Government should increase the number of public transport and the frequency of the transportation services.
We also urge the government to ensure that all residential areas must be public transportation accessible. The government must make sure that convergence point for all public transportation must be user friendly and easy accessible. Once the public transportation system was improved and upgraded, the LRT and public bus system will be the first choice for citizens. As a result, Malaysian will be able to reduce their daily spending by using less cars and petrol.
Due to the uncertainties in the world economy, we also urge the government to relook into the annual budget and economy plan and find ways to address the impact on rising prices of raw materials and a possible food crisis. Maybank Aseambankers in a report recently estimated the government’s budget deficit will be ballooned to 5.9% of Gross Domestic Product (RM 41bil) from an earlier estimated deficit of 3.1% of GDP (20 billion). Chart 2 below shows that the federal income, expenditure and deficit.

Chart 2
(RM Billion) 2005 2006 2007

Federal government’s income 106.3 123.5 139.9
Oil related 31.0 45.5 51.1
Non oil related 75.3 78.0 88.8

Federal government’s expenditure 128.2 143.5 163.7
Total subsidy 12.5 12.1 15.0
National administrative spending 85.2 95.6 108.1
Development expenditure 30.5 35.8 40.6

Budget Deficit (21.9) (20.0) (23.8)
(Source: Ministry of Finance, Malaysia)
In order to avoid excessive borrowing from overseas to finance the budget deficit, we propose to the government to increase other non-oil related income and be more proactive in taxation enforcement. Therefore, we propose that the government continue to impose oil palm windfall tax, independent power producers windfall tax and also increasing the threshold of gambling tax. On the other hand, we also urge the Government to review the large-scale development projects. We suggest that the large-scale development projects to be scrapped or put under the initiative of Government Linked Companies (GLCs). The government's main target now will be fighting the inflation and setting up the national food security mechanism.
We also suggest that all subsidies must be phased out in a given time line. We found that the petrol, diesel and other subsidized products are often smuggled and sold at neighbouring countries to obtain windfall profits. Recently, there are a few news reports mentioned about 3,500 litres of fuel being smuggled to neighbouring countries and there are a few people arrested in the Malaysia-Thailand border for sugar and flour smuggling.
In order to put an end to these illegal activities, we suggest that the Domestic Trade and Consumer Affairs Ministry and border enforcement units to cooperate in executing their tasks. Marine Police should be enhanced to patrol the border frequently to tackle the smuggling activities too. Therefore, government department’s effort to increase efficiency will help to reduce wastage and losses caused by the smuggling activities.
The current worldwide economic downturn will be a major challenge to the government. The government will not turn a blind eye on helping the citizens to overcome the burden. We believe that the Government will have a strong political will to help the people. With the initiatives of the government, a series of anti-inflation mechanism has been launched and fine tuned in the coming budget 2009. With a strong support from the citizens, the government will work on their very best effort to overcome every difficulty.

Sedia Membantu.............................

2008-07-15T16:13:00.000+08:00

Some Photo to share with u all... KOJADI-IKRAM-COGA

2008-06-25T20:52:00.003+08:00

1st project with newly registered NGO = Malaysian Chinese Oil ang Gas Alliance Berhad....

MoU signing ceremony with Kojadi and Ikram in training the O&G sector welding courses...

Dato leow at the press conference.............

As Expected, We Lost............

2008-05-23T18:16:00.001+08:00

Singapore gets Pulau Batu Puteh

THE HAGUE: The International Court of Justice ruled Friday in favour of Singapore in a 28-year sovereignty dispute with Malaysia over the tiny, uninhabited island of Pulau Batu Puteh.

"The court, by 12 votes to four, finds that sovereignty... belongs to the Republic of Singapore," Judge Awn Shawkat Al-Khasawneh said, reading out the ruling. - AFP

YES ! MAN UTD Did It Again.

2008-05-23T14:50:00.003+08:00

MOSCOW: Manchester United were crowned kings of Europe for the third time on Wednesday when they beat Chelsea 6-5 on penalties after a breathless all-English Champions League final had finished 1-1 after extra time.

United’s 37-year-old goalkeeper Edwin van der Sar, appearing in his third final 13 years after his first with Ajax Amsterdam, saved the decisive spot-kick from substitute Nicolas Anelka.

The victory completed a famous double for the Old Trafford team who pipped Chelsea to the English Premier League title 10 days ago.

It was an emotional triumph for United, coming 50 years after the Munich air disaster, and there was a huge cheer for one of the survivors, Bobby Charlton, when he joined the team at the presentation of the trophy he lifted in 1968 before Alex Ferguson led the team to a second success in 1999.

Malaysia Economy Growth Rate

2008-05-23T14:45:00.000+08:00

Malaysia’s Economy Growth Rate

Year	GDP growth
2006	5.9%
2007	6.3%
2008 (estimated)	5 - 6%

INTRODUCTION

Global growth was strong and driven by above-trend growth in most industries economies and buoyant growth in emerging market economies, despite moderation in the US economy, higher oil prices and the onset of financial market turbulence.

The Malaysian economy continued its strong growth momentum. Growth was driven by robust domestic demand despite a weaker external environment. Robust domestic demand was driven mainly by strong expansion in private sector activities.

1. Strategies to enhance the economy growth rate:

a. Promote the 5 economic corridors in a clearer way; let the SME and foreigners understand the incentives and opportunities in these areas.

b. Increase the activity to lobby for more FDI into Malaysia by MITI.

c. Encourage private spending by business communities. Development projects to be driven by Business community rather than by government.

d. Increase the activities and incentives in the agricultural sector to promote self sufficient of food as a way to decrease the import of food (expensive price internationally now).

2. If the economy goes in GOOD conditions:

a. The Malaysian economy is expected to remain on a steady growth path, expanding by 5 - 6% in 2008, supported by resilient domestic demand.

b. The emergence of domestic demand and public spending from robust services sector.

c. Malaysia’s export market increasingly diversified, to all over the world.

d. Malaysia is commodity producer, will continue to benefit from high prices of crude oil, palm oil and rubber.

3. If the economy goes in BAD conditions:

a. Economy slowdown in US will affect Malaysia in consumer and business sentiments.

b. Private consumption and private investment or FDI to Malaysia will slow down.

c. Higher inflation rate and low-medium income family will get affected.

d. Manufacturing sector will slowdown, causing lower export and further worker retrenchment.

e. Government will have to enhance their policy to counter economy slowdown, such as: adjust monetary system and increase fiscal incentives to all business communities.

f. Subsidy must be given to the right people (poor and hardcore poor family) with a good system to elevate their daily living difficulties.

4. How to enhance the economy cake:

a. Push for open tender system in all government projects and services. We want an efficient system to encourage the business community to compete equally.

b. More representatives for all ethnic in all working level of civil services.

c. Cut down the 30% bumiputra restriction for foreign and local investment in Malaysia as this will restrict the foreigner to invest in Malaysia because it is not business friendly. We hope that there will be more liberalization in the business environment.

URGENT- Tun Dr M Quit Umno

2008-05-19T19:58:00.002+08:00

ALOR STAR: Former Prime Minister Tun Dr Mahathir Mohamad and veteran party man Tan Sri Sanusi Junid announced Monday that they are quitting Umno.

Dr Mahathir Mohamad announced this on Monday at 12.35pm, citing a lack of confidence in the current leadership.

"I am quitting Umno today," he told about 1,000 people, mostly Kedah Umno members, at a talk here on Monday.

"I will write a letter to Umno headquarters to inform that I have quit the party," he said.

He has been critical of his appointed successor Prime Minister Datuk Seri Abdullah Ahmad Badawi, blaming the current Umno president for the party's disappointing performance in the 12th general election.

The ruling Barisan Nasional coalition, of which Umno is the largest component party, won the March 8 election with a simple majority, and saw four more states join Kelantan under Opposition rule.

Dr Mahathir urged other party members to quit too, as a way of pressuring Abdullah into vacating his post.

However, he advised those who do quit not to join any opposition party, adding they can all rejoin the party once there is a change in leadership.

Abdullah has so far refused all calls for him to step down, and said he would defend his presidency in the party polls in December.

Sanusi, who is a former Kedah Mentri Besar, also quit the party on Monday.

PM Abdullah: Shocked
Meanwhile, Abdullah said he was shocked by the decision and, despite their differences, had not expected him to leave.

However, the beleaguered premier said he would stay on and fight for the party.

“Perhaps some other members might leave too, but this won’t entirely affect the party. It all depends on whether the rest want to stay on and continue to fight for the party too,” he said.

Umno Deputy President Datuk Seri Najib Tun Razak expressed his shock and sadness too.

Najib, who read a prepared statement to Malaysian reporters at Sharm El-Sheikh in Egypt, said he was prepared to meet Dr Mahathir to discuss his decision.

"I will also discuss with Datuk Seri Abdullah, whom I had contacted just now, on efforts to strengthen Umno and also the issue of leadership transition in the party.

"I hope all Umno members will stay calm and give support to our efforts to strengthen the party," he added.

In KLANG: Former Selangor Mentri Besar Datuk Seri Dr Mohamad Khir Toyo said Dr Mahathir’s decision will affect public perception of Umno’s strength and possibly discourage youngsters from joining the party.

Many of those aged below 40 years grew up during Dr Mahathir’s premiership and hold him in high regard.

“Dr Mahathir’s resignation will have a huge impact on the trust that this group of people, including the Malays, have in Umno and its capability to lead the country,” he said.

He said youngsters wanting to join the party now might also shy away as questions would be raised on Umno’s ability to be effective as a party.

“These youngsters might not join other parties but they will stay away until Umno can mend the current situation and avoid splits in the party,” he said.

（吉打‧亞羅士打）前首相敦馬哈迪今日（週一，19日）說，他已率先退黨，其他黨員有權利自己去決定是否跟隨其做法。如果他們愛黨，可以選擇退黨表達不滿，向黨施壓，如果他們覺得還是需要支持阿都拉，那也是他們的權利。

詢及他帶動黨員退黨對巫統造成的衝擊，馬哈迪表示如果馬來人懂得糾正錯誤，而不止是表面退黨，巫統是不會消失的。

他表示，巫統是一個成立62年的政黨，他到全國各地會見黨員後，覺得巫統不再是一個民主的政黨。如果馬來人真正的要維護黨，他們應該要作出決定。

詢及退黨是否直接向阿都拉施壓時，馬哈迪說：“這個人不能明白人家做甚麼的，今天我宣佈退黨，是因為我叫黨員們這樣做展示勇氣，那麼我自己也要展示勇氣，我可能不能叫人去爬世界最高的山或一個去航海環遊世界後，自己也有能力這麼做，但退黨的事情我有勇氣以身作則。”

硬行動面對風險
退黨不成功便成仁

馬哈迪說，每一個強硬行動背後都可能會面對不能成功的風險，甚至面對內安法令、煽動法令罪名而被逮捕。

因此，他認為巫統黨員響應退黨的呼籲，可能也會面對不能成功而成仁的後果。但如不這麼做，下一代的前途沒有希望。

他說，作為醫生他瞭解到如果腳已經發臭，就應該鋸掉，以保全身體不使發臭。

強硬方式救黨

因此，他呼吁如果巫統黨員愛護黨，就要使黨復活，黨員都需要用強硬的方式來救黨。

“有人說黨員不可革除黨主席，但是想看是誰委任黨主席？誰一出生就是黨主席？”

他說，任何黨員，不要只關注個人利益，如果是為民族鬥爭，即使沒有出任首相、區部主席、支部主席，甚至中央代表都不是問題。

馬哈迪相信自己即使退黨後，不再是黨員，仍會在到處演講時吸引到巫統黨員來捧場。

他說，如果黨員只關注私利，那麼下一代未來將會抨擊他們沒有維護馬來人的利益。

馬哈迪：要控就控吧

針對林甘短片，他是被調查的6人之一，馬哈迪說，如果他們要把他控上法庭，就控上吧！但是如果他沒有罪，人們就不要來逮捕他。

他說，首相兼巫統主席拿督斯里阿都拉向美國、新加坡、興權會，甚至律師公會屈服，但他唯獨不向馬來人屈服。

他說，阿都拉明白自己是弱勢領袖，因此他必須向各方屈服，包括向律師公會主席安美嘉屈服，讓人們去調查及逮捕前首相（馬哈迪）。

不能對特定一個人效忠

馬哈迪說，雖然有黨員已致函阿都拉要求關注黨員的不滿，但阿都拉仍在“繼續睡覺”，並在輸了5個州政權和聯邦直轄區，以及失去三分之二議席後，仍強調國陣勝利。

他譏諷阿都拉表現如此差勁，卻仍不肯下台。

他說，如果黨員傳達給阿都拉的訊息，阿都拉還不明白，那麼黨員就應該以更強硬的方式來採取行動，馬來人不能對特定的一個人效忠。

他以巫統過去的領袖具有君子風度為例，指當年成立巫統的拿督翁惹化、帶領國家向英國人爭取獨立的東姑阿都拉曼都曾經對國家作出貢獻，但當他們發現黨內有不滿的聲音希望他們下台時，他們都會自願退位，不會繼續強調自己勝利。

馬哈迪說，即使在1999年全國大選發生“黑眼圈事件”，一些人轉而投向反對黨，但國陣仍取得三分二多數議席。即使吉打州失去8國席12州議席，但仍維持州內三分二議席政權。

“當時的吉打大臣丹斯里沙努西為了失去8個國會議席而辭職，也是看到了黨員的不滿而自動退位。”

2002年聽到不滿聲音退位

他表示本身在2002年自動宣佈退位，也是因為聽到了不滿的聲音。

“領袖不能像瞎眼耳聾般，不肯接受事實。”

馬哈迪說，吉打州4名中選的國陣國會議員中，沒有任何人被委任為內閣部長，令人質疑吉打是否沒有人才。

巫統退黨議員若不加入
民盟無法執政中央

馬哈迪說，巫統議員選擇退黨後，不跳槽民盟，民盟仍不能成立中央政府。

詢及一些巫統國州議員退黨後，是否會造成屬於國陣的國州議席懸空，導致民盟有機可乘成立政府時，馬哈迪認為只要這些退黨者不加入反對黨，那麼民盟就必須自己去尋求更多議席來組織政府，巫統黨員退黨就不會成全民盟成立政府的意願。

他說，退黨者在國會裡可投首相阿都拉不信任票，但他不認為反對黨會投阿都拉不信任票，因為反對黨會希望阿都拉能繼續領導，以讓他們有機可乘，確保反對黨可在大選中勝利。

詢及他呼吁一些支部主席退黨，以及一些國會議員退黨是否會獲得響應時，他表示不知道。

“一些人曾在我居高位時奉承我，但後來卻在我指責阿都拉的領導方式時，排擠我。”

以身作則犧牲自己

“我履行以身作則退黨的決定，我願意犧牲我自己，只要以黨的利益為重。”

他呼吁支部、區部主席們勇敢站出來退黨，因為他覺得個人的利益並不重要。

“即使失去各級職位、中央代表資格，都要提起勇氣面對。”

(The Star & Sin Chew)

4th MobileMonday Global Summit 2008

2008-05-18T22:02:00.001+08:00

4th MobileMonday Global Summit is FREE but they need to pre-register as it is on a first come first basis.

Date : 19 May 2008

Time : 8.30am -6.30pm

Venue : Hall 3, KLCC

Organised for the first time outside the founding city of Helsinki, MobileMonday (MoMo) Global Summit 2008 will be held in conjunction with WCIT. Mobile Monday Global Summit 2008 has the support of the Multimedia Development Corporation Malaysia (MDeC) and the Ministry of Science, Technology and Innovation, Malaysia (MOSTI).

This 4^th annual Global Summit will bring together mobile industry visionaries and developers. MoMo, a global community of over 70,000 mobile industry visionaries and developers has generated genuine business alliances through cooperative relationships with mobile operators globally. The MoMo Global Summit will also consist of the Global Peer Awards ceremony. This time around, there will be three categories, early stage companies, emerging companies (founded from 2005 onwards) and academia (university students).

MobileMonday Global Summit 2008, Kuala Lumpur, Malaysia is a interactive conference experience, promises to explore future developments and provide valuable insights into the hottest topics surrounding mobile games, music, multimedia, messaging, TV, advertising and marketing. The conference will cover the latest business models and strategies from content owners, content aggregators, operators, agencies and technology companies focused on consumer content.

This is the place where learning is shared through dialogue, relationships are forged, partnerships are formed and most importantly, business is made! It will be 2008's most important meeting for industry players eyeing the rich potential in the Asian mobile content space. Networking events including conference refreshments and lunches, cocktail reception and the conference wrap-up party provide the ideal opportunity for sponsors, speakers and delegates to meet and network informally.

Through innovation, new products, services and applications are created, which in turn, results in the creation and growth of businesses and enterprises. Recognizing its undisputable importance as a catalyst for the global economy, innovation has been identified as one of the global impact issues at WCIT 2008 and at the MobileMonday Global Summit 2008.

Today Mobile Monday has about 60 chapters and growing in cities around the world, as we continue to launch new locations monthly. Founded in Helsinki, Finland Mobile Monday has grown into the world's leading mobile community, led by a group of over 200 dedicated volunteers from across the world with a global community of over 70,000 mobile industry visionaries and developers including hardware manufacturers, software developers, content creators, network providers and the academic world who have generated genuine alliances through co-operative relationships with mobile operators globally will join forces for a truly unique conference focusing on the latest communications technology and its innovative applications.

For those interested to attend they can register by sending their contact information to 2008momokl@gmail.com and they can get updates at our website http://www.globalsummit.mobilemonday.com.my or call Rani Wemel at +60192070510 (MobileMonday Malaysia Organising Committee).

"人生与考验" 讲座会

2008-05-15T17:07:00.000+08:00

坤成中学将于以下日期、时间及地点举办坤成创校100周年系列讲座－"人生与考验" 讲座会 ~ 成功企业家的故事：

日期： 24-5-2008

时间： 10 am to 12 pm

地点：坤成中学

主讲者：丹斯里钟廷森、丹斯里拿督李深静、丹斯里拿督张泗清

主持人：永乐多斯博士

有兴趣参加的中央理事会成员、工作组成员及会员商家可向商联会秘书处黄秀华女士或林丽姗小姐索取入场票。

预知更多详情，请联络： 03-2273 2713

Rice Security Policy - RM725mil rice subsidy

2008-05-14T14:28:00.003+08:00

The Government will spend at least RM725mil to subsidise the import of 500,000 tonnes of rice.

The move would help maintain the retail price of rice and alleviate the burden of consumers.

The decision was made by the Cabinet Committee on Inflation yesterday. The committee also decided to implement five action plans to counter the rising price of rice and padi in the country.

Ceiling price for Super Special Tempatan 5% (with 5% content of broken grains), and Super Special Tempatan 10% at RM2.80 and RM2.70 respectively effective June 1, 2008.

Super Tempatan 15%, a controlled-price item costing between RM1.65 and RM1.80 per kilo. The transfer of padi between states would be allowed and conducted in stages.

The guaranteed minimum price (GMP) increased from RM650 per tonne to RM750 per tonne.

There is no shortage (of locally-produced rice) but we are importing to make sure we have a stockpile. About 70% of our rice is locally produced. The move to allow inter-state transportation of rice was to further free up the market and get rid of what was an antiquated system.

Malaysian Workforce Time Series

2008-05-14T14:11:00.003+08:00

	Malaysian Workforce Time Series
	(In million)
Sector	Year	2005	2006	2007
Manufacturing	workforce	3.133	3.244	3.343
	% growth	5.4	3.5	3
Agriculture	workforce	1.401	1.392	1.378
	% growth	-0.4	-0.6	-1.1
Civil Service	workforce	1.053	1.064	1.085
	% growth	1.1	1.1	1.1
Finance, Business	workforce	0.734	0.771	0.791
	% growth	5.7	5	2.6
Construction	workforce	0.76	0.755	0.766
	% growth	-1	-0.6	1.5
Transportation	workforce	0.63	0.646	0.662
	% growth	6.1	2.5	2.4
Mining	workforce	42.7k	42.6k	42.9k
(in thousand)	% growth	0.2	-0.3	0.7
Others Service	workforce	3.138	3.234	3.334
	% growth	6.6	3.4	2.8

Hooray Manchester United ~!~!~!

2008-05-12T11:23:00.001+08:00

LONDON: Manchester United retained the Premier League title yesterday when they won 2-0 at Wigan Athletic and Chelsea were held 1-1 at home by Bolton Wanderers.

It was the old and new faces of United who combined to secure the victory as Cristiano Ronaldo put them on their way with a 33rd-minute penalty and Ryan Giggs, on the day he equalled Bobby Charlton's club record 758th appearance, completed the win 10 minutes from time.

United ended the season on 87 points, two clear of Chelsea, who were leading through Andriy Shevchenko until Bolton grabbed an injury-time equaliser.

It was United's 10th Premier League title and 17th championship in all – one short of Liverpool's record – and they will now go for a domestic and European double when they face Chelsea in the Champions League final on May 21.

(www.thestar.com.my and www.yahoo.com)

Clarifying the Term 'Inflation'

2008-05-08T15:08:00.001+08:00

(Adapted from Business Times Online)

By Nor Zahidi Alias

SOME of my friends are grumbling about the recent increases in food prices. Nasi lemak, capati and teh tarik are costing more these days. Inflation, inflation, inflation, they muttered - how could inflation be two per cent, they questioned, referring to the increase in the Consumer Price Index (CPI) provided by the Department of Statistics.

Before you know it, they start making guesstimates of what the real inflation rate is in the country. Blame it on us economists. We are the ones who never make people understand what we mean by "inflation" when we talk to the public. Economists are a group of people who speak like people from Mars. When we say "current account", we mean current account of a country's balance of payments and not the current account balance that you have in your personal bank.

When we say gross domestic product or GDP, we normally mean the value of a country's output after it is adjusted for inflation. Well, at a time when inflation is becoming such a hot topic in this country, it would be helpful if we could speak a layman language so as to make it easier for people to understand. Let me try. When people talk about inflation, they normally refer to price increases of the goods that they normally purchase. These would include prices of milk, eggs, fish, bread, rice and even costs of different types of services like haircut, transport and so forth.

Some of the prices of these products and services have arguably increased quite significantly in the past one year due to high transport cost (as a result of an increase in fuel prices) and commodity prices. So when prices of the products they normally buy rise by say, 10 per cent, they think inflation rate should also be at least 10 per cent. That's not how economists see things when it comes to inflation. The inflation rate - which is essentially derived from the changes in the CPI - is derived the following way. First, pick up a basket of goods and services that a typical family would spend their income on.

For Malaysians, this would mean food items like rice, bread, eggs and some other basic foodstuff as well as other common services that they have to pay for like transport and communication. Note that this basket should theoretically be based on the current spending habits of a typical family in Malaysia. It must not be confined only to a particular class of the population. In fact, it should reflect the general taste of the population. Second, put proper weightage, say 30 per cent on food items and 10 per cent on transport - meaning that 30 per cent of our expenses goes to food and 10 percent goes for transport cost. Then value that basket of goods and services over time and see their changes.

Okay, this is where a major problem arises. How in the world can we construct a basket that represents every family's expenses? What my family consumes is definitely different from what your family spends on. To add to that, should there be a significant income disparity between two families, the difference in consumption pattern will become more prominent. Rich people who spend more on imported products for example may not feel the impact of "inflation" if only prices of local goods rise. Lower income people who consume say, more fish than poultry may imagine that inflation is skyrocketing if prices of fish suddenly escalated. But for those who hardly purchase any fish, they do not feel such a phenomenon.

So what this means is that when an individual starts complaining about inflation, he normally refers to price increases in his own basket of goods and services - the things that they normally purchase over time. Not surprisingly, each person can have his own inflation rate which differs significantly from the inflation figure that economists normally say in newspapers or on television. Economists only refer to a general price increase of the basket of goods that is being used by the Department of Statistics, a basket that supposedly represents goods and services purchased by a typical family in Malaysia.

So should we just chuck this thing called CPI out of the window? Maybe not. Firstly, it is the least we can do to gauge the trend of prices in the economy. Other countries are doing the same thing using the CPI, although some countries like the US prefer to use other measures called the core personal consumption deflator. There is also a similar gauge called the GDP deflator. While it will be too lengthy to elaborate on these two alternative measures, the important point to note is that these so-called "deflators" do not measure prices based on any specific basket.

They are based on the actual goods and services that we purchase over a period. They are sometimes referred to as changing weight price indexes that cover all goods and services in the economy. Notwithstanding their usefulness, however, these measures have their own drawbacks, on which I do not wish to elaborate in this article. Secondly, using CPI, we can dig up more details about price trends because different breakdowns are given by the Department of Statistics. For instance, prices of food and non-alcoholic beverages have generally risen by 4.5 per cent in February this year, compared with 2.3 per cent in June last year. Other notable increases are alcoholic beverages and tobacco where prices climbed by nine per cent in February, compared with 4.7 per cent in the middle of last year.

But one important tip for consumers - it is advisable to look at trends rather than absolute numbers in order to get a feel of where price pressures are coming from. So, don't grumble when you hear economists say inflation rate is only two per cent. They are not pulling your leg. They are just referring to the increase in the value of the basket which is being used by the Department of Statistics. Admittedly, it will never be a perfect basket but it is the best that we have to reflect a typical consumption pattern of the population.

The writer is the chief economist at Malaysian Rating Corp Bhd.

April 2008 Economic Data & Analysis

2008-05-08T15:06:00.000+08:00

Malaysia

Malaysia will count on domestic demand and high commodities prices to sustain growth as US Slowdown damps global trade.

The cost of the Government’s food security strategy to counter the worldwide increase in prices, especially rice, will total RM4bil. The money will be used to increase food production and counter inflation to keep prices in check. The allocation would also be used for food stockpiling.

Consumer Price Index (CPI) for January to March 2008 increased by 2.6%. Food and non-alcoholic beverages (4.4%), housing, water, electricity, gas and other fuels (1.3%) and transport (0.9%).

Domestic financial markets continued to experience some volatility amidst uncertainties on the outlook for global growth and continuing disruptions in the international financial markets.

Pahang is a geared towards becoming the East Coast Economic Region (ECER) dairy hub when an RM50mil farm in Rompin managed by First Dairy Farm (M) Sdn Bhd. comes into operation in May 2008.

Current Global Economy Situation

The U.S.

Fed lowered its interest rates for the seventh time (in eight months) by a quarter of a percentage point to 2.0%. The Fed mentioned that the risk of recession is gradually reducing, thus signalling an end to one of US’s most aggressive rate cuts in diverting its attention to curb inflation.

Consumer confidence fell as negative news continued to plague the employment and housing sector this week. Weekly initial jobless claims rose to its 4-week high at 380,000 and job cuts by employers in Apr-08 rose to the highest since Sept-06 by 27.5% and unemployment rate at 5.0%.

First quarter US GDP was up 0.6%, driven by a 1% increase in personal consumption expenditures. Contrary to popular belief, the consumer continues to spend in the face of rising gas prices, falling home prices and declines in payrolls.

China

Consumer confidence index dropped 1.7%. Consumer inflation has been on the rise since last year, largely due to soaring food prices.

The world's fourth-largest economy's growth slowed slightly to 10.6 percent in the first quarter, compared with 11.7 percent in the same period last year, according to National Bureau of Statistics. The deceleration might continue because of uncertainties such as reduced external demand and the spreading impact of the US subprime mortgage crisis.

Welcome to Parliament Malaysia

2008-05-08T13:23:00.004+08:00

Right side = Pakatan Rakyat... Leader= Wan Azizah.
Left side = Barisan Nasional. Leader = Abdullah.
Parliament Lobby.... A lot of previous DYMM SPB Agung portrait...
This is our dearest law making policy holy building... Bangunan Parliament Malaysia.
This is BN Rembau... Richest Unemployed.
This is Mahathir Jr....
This is Dewan Negara... No sitting now....
Parliament at resting hour......
So many documents on the table.....

Event Announcement

2008-05-06T21:06:00.001+08:00

The ACCCIM STI Committee is organising a Public Lecture by Prof. Du Xiang Wan, Vice President of Chinese Academy of Engineering (CAE), China. The details of the public lecture are as follows:

Topic: General Discussion on Science, Technology & Innovations in Business Enterprises

Date : 20th May 2008(Tuesday)

Time : 3pm

Venue : Equatorial Hotel, Ballroom, Mezzanine Floor, Jalan Sultan Ismail, 50250 Kuala Lumpur .

Language: Mandarin

Presentation Slides : Chinese and English

Entrance Fee : Free of Charge

Stupid Idiot UMNO 30% Bumiputra Equity Requirement

2008-05-06T21:03:00.001+08:00

Bumiputera Berpeluang Miliki 30 Peratus Ekuiti Dalam 263 Syarikat Asing, Kata Noh

PUTRAJAYA, 6 Mei (Bernama) -- Syarikat Bumiputera yang berkelayakan dalam pelbagai bidang termasuk teknologi maklumat dan komunikasi (ICT) dan telekomunikasi berpeluang memiliki 30 peratus ekuiti dalam 263 syarikat asing yang beroperasi di negara ini melalui Program Pemadanan Perniagaan yang akan dilaksanakan Jun ini.

Menteri Pembangunan Usahawan dan Koperasi Datuk Noh Omar berkata program itu akan dilaksanakan oleh kementeriannya (MECD) dengan kerja sama Jawatankuasa Pelaburan Asing (FIC) dan Unit Perancangan ekonomi (EPU) di Jabatan Perdana Menteri (JPM).

MECD telah mengenal pasti syarikat asing berkenaan, katanya.

Ekuiti 30 peratus itu dikhaskan untuk Bumiputera semasa melabur di negara ini, yang masih belum lagi diisi oleh Bumiputera," katanya kepada pemberita selepas majlis perhimpunan bulanan MECD yang pertama dihadirinya sejak menjadi Menteri di kementerian itu di sini, Selasa.

Turut hadir sama adalah Timbalan Menterinya Datuk Saifuddin Abdullah, Ketua Setiausaha kementerian itu, Datuk Musa Muhamad dan Timbalan Ketua Setiausaha Datuk Mohd Hashim Abdullah.

FIC telah mensyaratkan supaya syarikat asing yang melabur di negara ini memperuntukkan 30 peratus ekuiti kepada syarikat Bumiputera.

Bagaimanapun, Noh berkata kerajaan memberi pengecualian antara dua hingga tiga tahun bagi pelabur berkenaan untuk memenuhi syarat itu untuk membolehkan mereka mendapat rakan kongsi yang sesuai dan berkelayakan.

Untuk mencari syarikat Bumiputera yang layak, katanya bukan satu perkara yang mudah dan dalam masa yang sama "kita perlukan pelabur asing, jadi kita memberi kelonggaran."

"Kita akan berusaha untuk menyebarkan maklumat ini kepada Bumiputera untuk membeli ekuiti berkenaan. Kita ada senarai syarikat yang menjalankan pelbagai perniagaan termasuk ICT, telekomunikasi dan perkilangan," katanya.

Mengenai kriteria yang diperlukan, Noh berkata, selain perlu mempunyai kelayakan mengikut bidang dan kepakaran masing-masing, syarikat Bumiputera itu perlu mempunyai kesesuaian, kebolehan dan peranan yang boleh dimainkan dan bukan setakat menjadi pemegang ekuiti sahaja.

Noh berkata syarikat asing ini bertanggungjawab kepada FIC/EPU dan MECD merupakan agen pelaksana bagi program pemadanan ini.

-- BERNAMA

Malaysian Population Projection for 2020

2008-05-06T21:01:00.001+08:00

Projection based on a population growth of around 2% per year.
Due to population ageing, the growth for all races will be in small deceleration rate.

Year	2020 (million)
Total	34,075.60
Malaysian	31,254.20
Bumiputera	21,311.36
Melayu	17,515.14
Bumi lain	3,796.56
Cina	7,283.98
India	2,236.18
lain-lain	422.20
Non Malaysian	2,821.54

(Source Data from Yearbook of Statistics 2006. Dept. of Stats. Malaysia)

Gross Domestic Product by Kind of Economic Activity at Constant 2000 Prices

2008-04-28T12:09:00.003+08:00

(Source: Bank Negara Malaysia,2008)

Food Crisis (ecoworldly.com)

2008-04-27T20:03:00.000+08:00

According to the World Bank, global food prices were 57% higher in March than in the same month of 2007. World rice prices have risen 96% and more for some types, between October 2007 and April 2008.
The Consumer Price Index (CPI) for all food in the US is forecast to increase 3.5% to 4.5% in 2008, as retailers continue to pass on higher commodity and energy costs to consumers in the form of higher retail prices. The CPI for food increased 4.0% in 2007, the highest annual increase since 1990.
The total spent for all food consumed in the U.S. was $1,082.5 billion dollars in 2006, a 6.6 percent increase from $1,015.1 billion in 2005. Source: ERS Food Expenditure Data Series
India’s inflation accelerated to 7.41% in the week ended March 29, the quickest in more than three years, in the wake of the biting food crisis. India has since banned most exports of its rice as a precautionary measure to feed more of her people and avoid social unrest. In comparison, inflation in Vietnam rose 21.4% in April, the highest since 1992.
It has also been reported that price increases globally, up to the end of March 2008 were as follows: Wheat: 130%; Soya: 87%; Rice: 74%; Corn: 31%.
In efforts to alleviate suffering in poor nations, the Bill & Melinda Gates Foundation has upped spending on farming projects by 50% or US$240 million, from US$160 million in 2007.
Inflation in Britain, which has recently embraced increased biofuel usage by way of new regulations, climbed to 3.5% in March, up from 3.2% in February 2008.
Global development aid devoted to agriculture have fallen to just 4%. The World Bank’s agricultural development financing, through its agencies, has steadily dropped over the years from a peak of 30% in 1980 to only 12% in 2007.
Around 30% of the United States’ corn production will be used to produce biofuels by 2010.
UN’s World Food Programme has an estimated funding shortfall of US$500 million to enable it feed the world’s poor and already global charities have cut their food supplies by 73%, effectively keeping 73 million people even hungrier.
By 2050, world population will have grown to 9.2 billion people, compared to current figures of just under 7 billion.

做人别太CNN

2008-04-23T14:24:00.001+08:00

CNN对中国西藏的歪曲报道，以及北京奥运圣火传递遭到藏独分子的攻击，促使了这首歌。

做人别太CNN
那天上网猛然看见了一张照片
描述的是发生在西藏的打砸事件
CNN信誓旦旦，一切真相都在里面
而我渐渐却发现，这竟是欺骗
不管世事如何变迁，沧海变桑田
周老虎和这样的照片，我一样的讨厌
不要以为重复千遍，谎话就会成箴言
黑夜给了我黑色眼睛，我却用它寻找光明
何苦挖空心思，想要弄假成真，做人别太CNN
你又怎么可能，让周杰伦变成李宇春？
何苦挖空心思，想要弄假成真，做人千万别CNN
我宁愿你们，只是很傻很天真
我宁愿你们，只是很傻很天真

He is wearing a SONGKOK.....

2008-04-22T21:35:00.002+08:00

Our dearest Selangor State Assembly Speaker YB Teng Chang Kim is wearing a songkok as a hat. He described that songkok was required as a formal attire in the state assembly..... He still owe peoples a good reason and MCA an apologies for attacking them when they wear songkok....

Malaysia Independent Commission Against Corruption

2008-04-20T22:22:00.003+08:00

Yeah .... Minister to study and adopt the Hong Kong version of Anti Corruption Agency. Start reform and now Lets work together for a better Malaysia.

Will Teng wear Songkok ?

2008-04-20T22:12:00.003+08:00

Lawyer Teng had been aggressively scolding MCA on wearing a songkok on official ceremony....
Since he was voted as the Speaker in the Selangor state assembly , i hope that he will clarify on his songkok wearing issue if he was to wear a songkok when the assembly begins too....

Mis Reporting on Tibet Issue... (L) China

2008-04-20T21:46:00.002+08:00

http://www.youtube.com/watch?v=uSQnK5FcKas

Class F Contractors to get A Small Bite of Big Cakes... Agree?

2008-04-17T17:20:00.004+08:00

Government creating Class F contractor jobs is to help the Bumiputras in the construction industry. The move by Ministry of Works is to create more job opportunities for Class F contractors and assist them in capacity building through the development of more specialized contractors in the field of construction.

But, we opposed the decision on giving 10% of sub-contractors job to the class F contractor for mega projects that worth more than RM 10 million.

We agree that government should help class F contractors to become more competitive in the industry. Therefore, we proposed the following mechanism:

For contracts worth less than RM200,000 , 70% of the contracts will be reserved for open tender among Bumiputeras and 30% open tender to all Malaysian with 5% of margin of preference be given to Bumiputras.
For contracts worth between RM200,001 to RM500,000 , 70% of the contracts will be reserved for open tender among Bumiputeras and 30% open tender to all Malaysian with 4% of margin of preference be given to Bumiputras.
For contracts worth between RM500,001 to RM2,000,000 , 30% of the contracts will be reserved for open tender among Bumiputeras and 70% open tender to all Malaysian with 3% of margin of preference be given to Bumiputras.
For contracts worth between RM2,000,001 to RM10,000,000 , 30% of the contracts will be reserved for open tender among Bumiputeras and 70% open tender to all Malaysian with 2% of margin of preference be given to Bumiputras.

For contracts worth more than RM10,000,000 , we hope that open tender procedure should be available to all Malaysian without restriction.

Finally, we urge the Ministry of Works to award projects and contracts in a fairer manner and according to the contractor’s merit.

NO MORE AFFIRMATIVE ACTION ! PLEASE !
NO MORE TONGKAT ! PLEASE !

Have you got your pay rise?

2008-04-15T21:51:00.007+08:00

Federation of Malaysian Manufacturers (FMM) did a survey on Salary, Benefits and Employment Conditions Survey 2007 for manufacturing sectors. Some stats are available as below:

1	Average an increase of 0.3% in increments for manufacturing sector.
2	64.8% of the respondents would be getting an average of 5.92% increments.
3	88% of manufacturing companies surveyed, gave increments averaging:
		a. 5.62% to executives and 5.52% to non-executives in 2007
		b. 6.08% to executives and 5.92% to non-executives in 2006
4	Higher recruitment last year:
		a. 117 companies recruited 1,454 executives and
		b. 137 companies hired 15,685 non-executives.
5	Top three industry sub-sectors in recruitment were:
		a. electrical and electronic,
		b. plastics, and
		c. medical precision and optical instruments
6	Skills shortages were highest in:
		a. mechanical skill,
		b. quality control and
		c. machinist

Pay Rise...... :-)

Yes ! Confirm ! I Will be Contesting.....

2008-04-14T20:56:00.004+08:00

Dato' Seri Abdullah Ahmad Badawi on today (14/04/2008) announced his intention to seek re-election as UMNO's President in the party election, which will be held on December. His move was seen as a blow to the "Power Transition Plan" by Najib, Muhyiddin and which was openly backed by Rais Yatim. UMNO MT - Khir Toyo also joining the crowd and asking Pak Lah to resign today too.

Resign Please.. Pak Lah. Some Stats and figure

2008-04-12T23:16:00.006+08:00

As of 11 April 2008, the persons or groups that openly requested the President of UMNO and BN to step down will be as below:

1. Mahathir Mohamad - Old Man
2. Tengku Razaleigh and Gua Musang Division - Never Dying Man
3. Mukhriz Mahathir - MP Jerlun
4. UMNO KEDAH
5. UMNO PULAU PINANG
6. UMNO JOHOR
7,8,9 Muhiyiddin and Najib asking for a " Power Transition Plan" and Rais Yatim Support that.
*17 April 2008
10. UMNO Selangor

If you MALAY are interested to Contest in the UMNO Election for the posts stated below, you need to get a total sum of UMNO division support as below:

1. President : 58 of 191 (30%)
2. Deputy President: 38 of 191 (20%)
3. Vice President : 19 of 191 (10%)
4. Supreme Council: 10 of 191 (5%)

MCA Economic blueprint 2008-2013

2008-04-11T14:58:00.003+08:00

I think some of you may have heard of the launching of the MCA Economic Blueprint on 22/02/2008. The Economic blueprint was a 1st in MCA, which is a well written on the long neglected economic area for MCA. We are currently implementing the thrusts accordingly, for this 5 years, from 2008 to 2013. For inquiries, you're welcome to call us at the secretariat: 03-21611618.
-

MCA also need to Reinvent

2008-04-10T19:44:00.000+08:00

Lets work together for a better Malaysia. Although there are a lot of politikus in MCA.
Can we find a cat from Deng Xiao Ping (邓小平）to settle it ? Muahahaha....

风继续吹。。。Blogging winds.....

2008-04-09T15:09:00.000+08:00

Politician turn blogger....

When you can't beat them, you...... Join them ....

1 Month Post 12th General Election - Pakatan Rakyat

2008-04-08T20:37:00.000+08:00

(One) month - 30 days - today is 08/04/08.
Have the Barisan Alternatif module coming back with a new name ? Pakatan Rakyat..... DAP-PKR-PAS working together again setting up a loose coalition.
Kit Siang says:" we have no connection with PAS".
Remember to cross over my dead body before you implement Hudud law (Karpal to Nik)...

Tapah Duck Herb Mee

2008-04-03T14:00:00.000+08:00

Duck Herb Mee in Bidor costs around RM 6 per pax. You're recommended to try it when u are on the way to Ipoh or Cameron.
This fello eat until beh tahan............

DAP Perak Must Do Better

2008-04-01T15:49:00.001+08:00

The new Perak government was finally formed and sworn in after 2 weeks of controversial lobbying and bargaining for Menteri Besar and State EXCOs position by the loose coalition of DAP-PKR and PAS. Even though the DAP won 18 seats and holds the largest voice in the loose coalition, they lost the Menteri besar post to PAS. If the coalition’s relationships are not properly managed, their manifesto and promises to the Perak’s rakyat will be in the question.

As a consequence, the most important portfolios - economic development, land matters, natural resources, security and rural development was grabbed by the PAS Menteri Besar Nizar. DAP state chairman was only given a senior EXCOs post to oversee finance committee, water, energy and non-muslim affairs portfolio.

The DAP candidates promised the Perak voters in the 12^th general election to restructure the state land policy and allowing the new villages temporary occupancy license (TOL) be extended to 99 years if they won the election. In addition, Perak Senior EXCOs Ngeh in an interview with Sinchew Daily on March13, 2008, unveiled that DAP will take a move to make sure all farming land and commercial land in Perak be granted 99 years of TOL or given a free hold status.

Perak’s land farming land issues was also given an attention by the previous Perak government. In February 2008, the Prime Minister and the Perak Menteri besar has agreed to lease the 2,903ha of land in the state to 931 farmers located in Coldstream, Kuala Bikam, Malim Nawar, Jeram, Kuala Kuang and Kanthan for 30 years – the maximum allowed years under the State Land and Mines Policy. So, if the DAP wishes to extend the land license to 99 years or free hold status, they have to amend its laws to be passed in the state assembly.

For the sake of the community, we hope that the newly formed Perak government can keep their promises and find a way to continue helping the farmers in granting a 99-years land lease or freehold status farming land.

Other than that, DAP must also endeavor to change the mindset of the Perak State Civil Service to the liberalization of land licensing and answer to the plight of the farmers. “Pakatan Rakyat” must adhere the principle of fairness and justice for all that they promised to deliver.

Since the national agriculture policy was aimed at reducing the nation’s reliance on imported food by 2010, we hope that the farmers will use their rights to push for the legitimization of their farming land too.

With the cooperation of the new state government, DAP must help to create a better improved agriculture sector for the Perak farmers, beginning with helping them to secure a better tenancy agreement.

SYABAS and PUNCAK - Selangor Water Deal

2008-03-18T13:40:00.000+08:00

Reduce Water Charges, Can They Do It?

The new Selangor Menteri Besar Tan Sri Khalid Ibrahim recently announced that the newly elected Selangor state government will make a move to give free first 20 cubic metres of water from April 2008 to all Selangor households.

The move was seen as a step to win the hearts of the Selangorian who have supported the loose coalition of DAP-PKR-PAS whom had took over the states in the recent 12-th general election. But, can Khalid make it?

The Water Services Industry Act, which will come into effect soon, is obviously a move to make the water assets re-nationalized and re-uniform by the federal government. Now, with the review process of the water concession in Selangor, it will affect the overall restructuring of water assets by the federal government throughout the country.

The federal government’s move to improve the efficiency of clean water delivery and bringing the state water agencies out of losses will be facing a tough power struggle crisis along with the (five) opposition states. The federal government may stop giving annual development grants and funds to the states. Table 1 shows the average domestic water tariff in Malaysia.

Table 1: Malaysia Average Domestic Water Tariff

No	States	RM/m³	Revised tariff year
1	National Average	0.645	-
2	Penang	0.31	2001
3	Terengganu	0.52	1997
4	Kedah	0.53	1993
5	Kelantan	0.55	2001
6	Sarawak	0.56	1984
7	Perlis	0.57	1996
8	Pahang	0.57	1983
9	N. Sembilan	0.68	2002
10	Melaka	0.72	2005
11	Perak	0.73	2006
12	Selangor	0.77	2006
13	Labuan	0.90	1982
14	Sabah	0.90	1982
15	Johor	0.90	2003

(Source: Jabatan Bekalan Air, Kementerian Tenaga, Air dan Komunikasi Malaysia)

The water concession contract between the federal government, state government, Puncak Niaga and SYABAS was signed in 2004 for 30 years until 2034. Puncak Niaga is a federal government entity that was responsible to restructure and nationalize the entire water supply chain in the country while SYABAS is the water supply agency in Selangor that suffer losses due to non-revenue water.

The tough challenges for Khalid would be first; to ensure that the new Selangor government is able to turn the state owned water agencies into profit making business without cross subsidies from the federal government.

Secondly, the water concession contract between the state government, Puncak Niaga and Syarikat Bekalan Air Selangor (SYABAS) was said to be strictly confidential and their company annual report were also barred from public viewing. Due to conflict of interest, it is doubtful that these companies will follow Khalid’s order to fully release their reports and financial statements.

The states civil servants is the third challenge that play an important role in deciding the effectiveness and efficiency in facilitating states development and management with the new state government. There are clearly opposing ideologies between having to run a profitable organization versus running along a state owned enterprise model that Khalid’s populist politic dictates.

Fourthly, If the civil servants are unable to adapt the Khalid’s administration style, their working efficiency rate will be reduced and eventually delaying the administration process. Some people also see the civil servants as a group that pro Barisan Nasional, and they are afraid that the new state government policies will not be implemented efficiently or worst, state civil servant mis-implemented the policies with their own countermeasures. The recent Taiwan’s Presidential election shows that the civil servant are still pro- Kuo Min Tang (KMT) even though they have voted for Democratic Progressive Party (DPP) in 2004 and that was one of that factor that helped KMT to regain power from the poorly performed DPP.

The fifth and the crucial obstacle that Khalid faced in reviewing and amending the states administrations will be the mutual agreement between PKR, DAP and PAS. Ideology for the (three) parties are totally different and their views on certain issues are totally dividing. It is certainly hard for Khalid to unify the different voices without any internal conflict as the strong echo voices from the administrator is the only way to bring the states goes forward.

“Selangor Rakyat’s” expectations for the new government certainly will be higher than the previous administration. If Khalid’s administrations are unable to perform to the expectation of the rakyat, their coalition will be dumped by the voters in the future terms.

People's Power!!!! Makkal Sakthi !!!!!

2008-03-08T20:26:00.000+08:00

08032008.
People have spoken. Please change your style before you're changed.