Archive for category Economics
Malaysia-US FTA – Questions for Rafidah
Posted by Kit in Economics, Parliament on Saturday, 24 March 2007
On Tuesday, Minister for International Trade and Industry, Datuk Paduka Rafidah Aziz, gave a 21-page reply to questions on the Malaysia-US FTA talks and developments.
Rafidah said that the sovereign right of the government to make and implement certain national policies for the interests of the rakyat and country is one of the fundamental issues that are non-negotiable for Malaysia in any bilateral FTA.
Malaysian sovereignty
I want to raise 3 matters of vital public importance that are on the negotiation list.
First is the issue of the mandatory labelling of genetically modified organisms (GMOs) and products containing GMOs. The Biosafety Bill that has passed the first reading in this House is necessary to safeguard public health and the environment. An important provision is the one that requires mandatory labelling, and we understand that Draft regulations for labelling of genetically modified food are ready and notified to the WTO. For consumers who may have allergenic reactions to certain GM products or have religious reasons to reject such products labelling is essential.
I raise this because the US Trade Promotion Authority (TPA) Act expressly states that labelling of biotechnology products is a practice that should be eliminated as it decreases US export opportunities when consumers choose not to consume GM food.
The US Biotechnology Industry Organization (BIO) and the AMCHAM Malaysia/US Chamber of Commerce have opposed mandatory labelling of genetically modified products or foods in their public submissions to the US Trade Representative. In particular, AMCHAM Malaysia/US Chamber of Commerce state that such labelling “should be firmly opposed by the U.S. in the FTA Negotiations”.
Many countries (such as Japan, China and many European countries, and even Australia which signed an FTA with the US) already require mandatory labelling. This is consistent with the WTO Agreement on Technical Barriers to Trade which states that “technical regulations shall not be more trade-restrictive than necessary to fulfil a legitimate objective”.
The legitimate objectives include “national security requirements,
prevention of deceptive practices, protection of human health or safety, animal or plant life or health, or the environment” (emphasis added). The prevention of deceptive practices includes product information and labelling, so it is clearly within our sovereign right to have mandatory labelling of GMOs and GM products.
Under the Codex Alimentarius Commission, the joint WHO/FAO body regulating international food standards, the Committee on Food Labelling has been discussing a global standard for mandatory GM food labelling. The draft standard on GM labelling has support from a majority of the Committee, including Malaysia.
Is this one of the areas of national sovereignty that will be non-negotiable?
Read the rest of this entry »
RM149 billion KLSE losses in 5 days – PM/Ministers not stock market consultants
Posted by Kit in Economics, Good Governance on Tuesday, 6 March 2007
The Cabinet tomorrow should warn off all Ministers to stop acting as investment consultants to talk up the market after the expensive lesson of RM149 billion losses suffered mostly by small investors in the stock market in the past week after the Prime Minister, Datuk Seri Abdullah Ahmad Badawi’s Chinese New Year advice to enter the market to “ride on the momentum”.
Small investors had overcome their skepticism and reluctance to enter the stock market following the Prime Minister’s exhortation at the Gerakan Chinese New Year open house in Kuala Lumpur on the first day of the Chinese New Year on February 18, 2006 to enter the stock market to “ride on the momentum” of the good economic times on the ground that the Kuala Lumpur Composite Index (KLCI) could surpass the 1,350-point level following positive indicators of the country’s economic growth — namely the trillion ringgit total trade last year, the increasing foreign and domestic investments and the rising ringgit.
In less than a week, small investors who acted on the advice of the Prime Minister and flocked into the stock exchange were badly burnt.
In two days on 27th and 28th February, the KLSE plunged 76.42 points from 1,272.87 to 1,196.45, wiping out RM69.45 billion market capitalization in two days.
It is deplorable that Abdullah, who was visiting Yemen at the time, did not immediately learn the lesson that as Prime Minister and Finance Minister, he should not double up as stock market adviser as he persisted in advising Malaysians “to have confidence and be prepared to invest in the KLSE to attract bigger foreign participation”.
Other Cabinet Ministers have also got into the act to double up as investment consultants. Read the rest of this entry »
PM’s CNY present – RM70 billion Bursa Saham losses by small investors
Posted by Kit in Economics, Good Governance on Thursday, 1 March 2007
The Prime Minister Datuk Seri Abdullah Ahmad Badawi had a special Chinese New Year message for Malaysians in the first two days on the Chinese New Year on February 18 and 19, 2006 — to enter the stock market to “ride on the momentum” of the good economic times.
This was his common theme at the Gerakan Chinese New Year open house in Kuala Lumpur on the first day of the Chinese New Year and at the open house of the Penang Chinese Chamber in Penang on the second day of the Chinese New Year.
Abdullah pointedly said that the Bursa Saham composite index, which was at the time at a high of more than 1,258 points, could surpass the 1,350-point level following positive indicators of the country’s economic growth — namely the trillion ringgit total trade last year, the increasing foreign and domestic investments and and the rising ringgit. (New Straits Times 21.2.07)
There had been widespread skepticism about the slew of “good economic news” which had been trotted out by the government in the previous two weeks, particularly about foreign direct investments which clearly conflicted with statistics released by the United Nations Conference Trade and Development (Unctad) — raising the question as to why there is a difference of between RM6.4 billion to RM9.8 billion in the statistics released by the Ministry of International Trade and Industry (MITI) and Unctad on 2006 FDIs into Malaysia.
However, when the Prime Minister openly urged Malaysians to enter the stock market “to ride on the momentum” in expectation of the KLSE rising above 1,350 points, small investors cast aside their doubts, reservations and skepticism and entered the stock market in a big way after the Chinese New Year holidays, lifting the KLCI to close at 1,283 points last Friday — with the Star yesterday carrying the screaming headline “KLCI poised to break record” for this week. Read the rest of this entry »
Why the difference of RM6.4 billion or RM9.85 billion in MITI and UNCTAD figures for 2006 FDIs
For the past two weeks, Malaysians had been fed with the news that good economic times are back, with the country drawing a record RM20.2 billion in foreign investment in manufacturing, a record 2006 trade volume breaching RM1 trillion, rocketing share prices, a strong ringgit and rising foreign reserves.
The Prime Minister Datuk Seri Abdullah Ahmad Badawi had denied that an imminent general election is on the cards because of the slew of good economic news to generate a “feed good euphoria” reminiscent of the period before the 2004 general election.
Although the next general election will not be held in the next few months, everyone would expect the holding of early general elections in the next eight to 14 months before April 2008, when Datuk Seri Anwar Ibrahim would regain his civil liberties including the right to stand for elections at the end of his five-year disqualification from the date of his prison release.
But are the good economic times back for the people of Malaysia? If so, a little-noticed announcement on Chinese New Year’s Day has sent out a very different message.
On February 18, 2007, Bernama reported that the government had scrapped its earlier plan to extend the textbook loan scheme to all school students, both at primary and secondary level, from next year. Deputy Education Minister, Datuk Noh Omar was quoted as saying that the move was scrapped as the ministry would incur an extra sum of over RM100 million yearly.
When the government has to cancel the textbook loan scheme for all students because it cannot afford the additional expenditure of RM100 million, it strains credibility to believe that the government and the country is aflush with funds.
Malaysians have been told in the past fortnight that the country is back on the global investment map, in reversal of the gloomy news in the past few months that Malaysia is in danger of dropping out from the radar of foreign investors because of increasing lack of international competitiveness, whether in efficiency of public service, quality of education, good governance, transparency and integrity. Read the rest of this entry »
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