Letter to PM – urgent response to issues raised in budget debate in Parliament like RM4.6b PKFZ bailout, RM8.1b dev. est. discrepancy , e-Kesihatan rip-off
Posted by Kit in Abdullah Ahmad Badawi, Good Governance, Parliament on Friday, 14 September 2007, 12:11 pm
I have written to the Prime Minister, Datuk Seri Abdullah Ahmad Badawi, asking him to respond to urgent issues raised in the first three days of the 2008 Budget in Parliament which cannot wait for Ministerial replies some two months later scheduled for early November when the Dewan Rakyat reconvenes on Oct. 22 after the 39-day break for the fasting month and Hari Raya holidays.
I listed four urgent issues which had been raised in Parliament in the first three days of budget debate earlier this week and which are crying out for immediate government response and action, viz:
1. The RM4.6 billion Port Klang Free Zone (PKFZ) bailout scandal
Accountability, transparency, integrity and good governance principles demand instant end of the government’s denial syndrome both in and outside Parliament about the RM4.6 billion PKFZ bailout scandal — particularly at a time when the Prime Minister is trying to assure Malaysians that the government means business and would not brook any hanky-panky following the shocking exposes of the pervasive culture of impunity, corruption, waste and mismanagement of public funds in the 2006 Auditor-General’s Reports.
When compared to the RM4.6 billion PKFZ bailout scandal, the corruption and mismanagement of millions or tens of millions of ringgit of funds exposed by the 2006 Auditor-General’s Reports were mere “chicken-feed”.
However, if the Cabinet can be so irresponsible as to continue to deny that there is a RM4.6 billion bailout of the Port Klang Free Zone scandal, while the culture of impunity persists in providing immunity from legal and accountability consequences for those responsible for the RM4.6 billion bailout when the government had right from the start been given a very categorical assurance that the PKFZ project was feasible, self-financing and would not require a single ringgit of public funding, a wrong message is being sent out – that all the public hullabaloo over the Auditor-General’s Reports 2006 are mere “sandiwara” and not meant to be taken seriously, as absolutely nothing would ensue. Read the rest of this entry »
Orang Asli allocations – not how much but what reaches them
Posted by Kit in Orang Asli, Parliament on Friday, 14 September 2007, 9:05 am
The Budget states that the government is committed to improving the quality of life of Orang Asli, allocating RM170 million to the Department of Orang Asli Affairs to carry out numerous programmes and projects.
We should listen to the views of the Orang Asli community, and the following are some feedback from the Center for Orang Asli Concerns (COAC).
With regard to the financing of Orang Asli development, the issue is not how much is allocated in the annual budget but how much actually reaches the Orang Asli in real terms, in concrete benefits. Read the rest of this entry »
DAP’s MENUS Budgetary proposals
Posted by Kit in DAP, Parliament on Friday, 14 September 2007, 9:00 am
Two days before the formal budget presentation by the Prime Minister-cum-Finance Minister, Datuk Seri Abdullah Ahmad Badawi in Parliament last Friday, DAP presented its first alternative budget for 2008, themed “Malaysian First: Unity Driven Equity, Growth & Innovation”.
The proposed DAP 2008 Malaysian Budget focuses on the twin challenges of globalisation and the country’s high dependence on oil and gas resources.
With increasing competition from other developing countries and the rapidly evolving technology markets, it is critical that Malaysia puts in place a system which will be able to exploit the opportunities provided by, and at the same time mitigate the negative impact resulting from, globalisation.
At the same time, a 40% dependence on government revenue from the oil and gas sector is of serious concern, especially in the light of oil reserves which will last for only another two decades and Malaysia becoming a net oil importer by 2011.
The proposed DAP Budget is meant as a distinct departure from the current administration’s New Economic Policy (NEP) which is driven by race. The underlying rationale and approach to the proposed DAP Budget is the “Malaysia Economic & National Unity Strategy” (MENUS) which will be based on performance, competence and needs of all Malaysians.
The key policy measures proposed in the DAP Budget should be given full consideration by the government. In fact, a copy of the DAP budgetary proposals was presented to the Prime Minister’s Office in Putrajaya on Thursday, the eve of Abdullah’s Friday presentation.
The key highlights of the proposed DAP Budget 2008 are: Read the rest of this entry »
Improving productivity & competitiveness of delivery system
Posted by Kit in IT, Parliament, public service on Friday, 14 September 2007, 8:35 am
A Budget or a blueprint will only be as good as its execution. In the past decades, we have seen many ambitious plans announced by the Government. However, these projects have often ended at best, a qualified success without achieving its original objectives, such as the Multimedia Super Corridor project or at worse, an unmitigated failure such as the BioValley or the MSC e-Village.
In the past year, the administration has also launched several large-scale blueprints for various projects in Malaysia, including the Iskandar Developer Region (IDR), the Northern Economic Corridor as well as the East Coast Corridor. These efforts will all be in vain if they are not implemented with competence and integrity.
The focus of the budget has to be on substantially improving the competence and integrity of our civil service and delivery system to ensure that the benefits expected from Government initiatives will be enjoyed by all Malaysians. Read the rest of this entry »
Robust legal framework, economic efficiency
Posted by Kit in Court, Parliament on Friday, 14 September 2007, 8:20 am
If the budget is to succeed in bringing about a significant shift of our economy to the next gear, our economic policies and reform must also be accompanied by significant reforms in our judicial system to ensure that foreign investors will have the necessary confidence in not just justice meted out but also the speed and efficiency at which disputes can be resolved.
Our judiciary system today leaves much to be desired. There are thousands of cases in backlog, and often it takes more than five years before commercial disputes are even brought to court for trial at the High Courts. Such inefficiency certainly benefits and incentivises the culprits and penalising the victims.
What certainly wrecks the confidence in our legal system is when a 19-year old, Lee Kwong Yong was jailed for 6 months while awaiting justice for being unable to produce his identity card when caught by the police. The injustice would have been worse had it not been for a good Samaritan who chanced upon his case.
The DAP recommends that the Government do more to attract more experienced legal practitioners as well as industry specialists into the judicial profession to resolve the twin problems facing the Courts, a shortage of judges as well as a lack of professionals to manage the mounting backlog of cases. Read the rest of this entry »
A Healthy Population, a Prosperous Nation
Posted by Kit in Health, Parliament on Friday, 14 September 2007, 8:08 am
The increased privatization of the health sector has resulted in the shift of health-related expenditures and risks from the society at large to that of the individual level. While it may be argued that it is proper for any person to bear a fair share of her medical expenditures, the shift in the sharing of such costs and risks has resulted in inequitable access of adequate healthcare to certain groups within the society.
The paradox arises when those who can best afford healthcare are ones who need healthcare the least; it is the poor who can least afford to live in a healthy environment (e.g. lack of proper sanitation) and a healthy lifestyle (e.g. good nutrition).
There should be increased public funding and investment in improving the standard of the public health sector by increasing the RM10.7 billion allocation in 2008 Budget or 8.3% of total estimates to at least 10% or RM12.8 billion.
One of the key mechanisms to keep medical inflation in check is to “right-site” healthcare. Thus, there needs to be a major paradigm shift from a near absolute focus on provision of medical care to one which minimises the need for costly medical interventions.
Good health requires more than just access to quality and affordable medical care. Research has convincingly shown that medical care has played a less important role than other factors in improving health in countries like the UK. Healthy lifestyles play a bigger role than medical care in achieving good health.
The Ministry of Health should do this by enhancing health promotion and education as well as disease prevention capabilities, carrying out health education and promotion initiatives like a National Healthy Lifestyle Programme, National “No to Smoking” Campaign, Nutrition Programme and a School Health Programme.
In line with the special salary readjustment for the police force on top of the revision of the civil service pay recently, the DAP proposes a 20% additional increment for all doctors serving in government service, and an additional 10% increment for all support stuff such as nurses and pharmacists.
This forms a necessary step to incentivise doctors who are currently in service and attract more young doctors to service in government hospitals, at least for the initial years.
The medical profession in Malaysia are certainly one of the most poorly paid medical professionals in the region, resulting in many qualified Malaysian doctors seeking greener pastures overseas where they are in demand. At the same time, low wages compromises our healthcare system with sub-standard doctors recruited from many Third World countries. Read the rest of this entry »
Challenge to ACA – disclose how many persons had been arrested/prosecuted for corruption from previous Auditor-General reports
Posted by Kit in Corruption, Good Governance, Parliament on Thursday, 13 September 2007, 12:53 pm
In China, a senior official at the Agricultural Bank of China was executed for corruption following years of ordering suppliers to pay him kickbacks. Wen Mengjie, 50, former head of information technology at one of the bank’s Beijing branches, was executed Tuesday for embezzling and taking bribes worth 15 million yuan (USD1.97 million).
In the Philippinnes, former president Joseph Estrada was sentenced to jail in prison after he was found guilty of massive corruption and plundering the country of tens of millions of dollars in tax kickbacks and bribes.
In Japan, Prime Minister Shinzo Abe announced he would resign after being dogged by a string of damaging scandals that hampered his reform agenda.
What do we have in Malaysia? Another year of shocking revelations of corruption, criminal breach of trust, overspending and mismanagement of funds by the Auditor-General, Tan Sri Amrin Buang — with the apt headline of the the New Straits Times yesterday “Same old story year in year out” — while the culture of impunity reigns on without anyone in high office having to bear responsibility for corruption and abuse of power. Read the rest of this entry »
Low-Income and the “FairWage” Initiative
Posted by Kit in Labour, Parliament on Thursday, 13 September 2007, 9:32 am
The EPF is a social security institution formed according to the Laws of Malaysia, Employees Provident Fund Act 1991 (Act 452) which provides retirement benefits for members through management of their savings in an efficient and reliable manner. With rising costs of living, extended life expectancy and more expensive medical treatments, it is critical that Malaysians save as much as possible to ensure sufficient funds for retirement. It is also important for as many Malaysians as possible to be included in the system.
However, as studies have shown, low-income Malaysians are facing significant difficulties in saving enough via EPF. As a result, the Government must act to assist this group of Malaysians who face various challenges in the face of globalisation, particularly with a stagnant or declining real wages. This is clearly reflected in the 9th Malaysia Plan Gini co-efficient statistics where by income disparity among Malaysians has widened substantially. Malaysia ranked highest in terms of income inequality in Southeast Asia.
To assist low and medium-waged workers, DAP proposes raising the Employer EPF Contribution Rate from the current 12% of total wages to 15%, representing a 25% increase. This will in turn raise the total contribution from the employer and employee to the fund to a total of 26%.
At the same time, in view of the increase in cost for the employers, which may in turn affect the competitiveness of Malaysian companies, it is proposed that a limit of RM8,000 per month or RM96,000 per annum be set to Employer contributions to the EPF. That means that for employees earning above the limit, their EPF contributions will continue to be calculated at the limit level.
However, for middle-age workers who are earning below RM1,400 per month , it is clear that they will continue to face severe challenges despite the increase in employer’s EPF contribution. Whilst younger workers may be learning the ropes and learn new skills to upgrade their income level, older workers will face difficulties in our fast-changing economic environment and are in the greatest need of assistance from the state to make ends meet.
With the oil and gas sector contributing handsomely to the state coffers, it only makes social sense to share part of these gains with the less fortunate and lower income tiers within our society. However, at the same time, we still need to continue to incentivise these workers to secure employment to avoid over-dependence on the state. Hence, DAP proposes “FairWage” as an integral component of a new national policy in promoting social justice. FairWage has a 3-prong strategy for implementation: Read the rest of this entry »
National Broadband Plan
Posted by Kit in IT, Parliament on Thursday, 13 September 2007, 9:01 am
Based on statistics made available by the Minister of Energy, Water and Communication as at 2006, broadband penetration rates for Malaysia is less than 3%, compared to more than 60% for South Koreans.
The BN Government’s National Broadband Plan target of 25% household penetration by 2006 and 50% by 2008, has clearly failed miserably.
In the larger national interest of achieving the above targets, and its importance towards building a generation of enterprising and innovative Malaysians, DAP proposes that the broadband market be liberalised to allow for foreign competition.
To promote the building of high quality and reliable broadband network, DAP proposes favourable tax treatment for telecommunication firms undertaking broadband investments:
* New broadband operators are allowed to deduct financing costs from their taxable income.
* Investors are exempted from paying taxes on interest income from bonds specifically ear-marked to finance these investments.
* Exemption from import duties for specific state of the art telecommunications equipment required for broadband infrastructures.
Towards a More Equitable Highway Toll System
Posted by Kit in Parliament, Transport on Thursday, 13 September 2007, 8:45 am
In January this year, the Government raised the toll fare for 5 privatised highways in the Klang Valley. The Bentong and Gombak toll on the Karak Highway was raised by 20% and 25% respectively. The 3 KESAS Highway toll was raised by 47%, while the Batu 9 and Batu 11 toll along the Grand Saga Highway was raised by 43% and 50% respectively. The highest increment however, was at the tolls along the Lebuhraya Damansara-Puchong (LDP), by 60%.
These 5 highways were constructed at a cost of RM4.13 billion. The toll rates have been raised excessively despite the fact that the Government has paid RM2.28 billion in compensation to date, as well as an additional RM2.59 billion over the next 5 years, or a combined total of RM4.86 billion. The compensation promised to date has already exceeded the construction cost of the highways by 18% or RM734 million.
As a further example, the total capital cost of construction of the LDP is estimated at RM1.327 billion inclusive of capitalised interest of RM142.3 million. However, the projected profit after tax (PAT) over 30 year concession period has been estimated at RM18.865 billion based on the agreement with the Barisan Nasional-led Government. The projected profit represents a 1,400% return on capital, which is excessive by any reasonable standards.
With the impending increase in toll rates for the North-South Highway, and in the light of the clear cut inequity in the concessionaire agreements, as well as in the overwhelming interest of the Malaysian public, the DAP proposes the renegotiation of all toll concessionaire contracts for Malaysian highways. Read the rest of this entry »
Nathaniel Tan’s reply to the Prime Minister
Posted by Kit in Human Rights, Police on Thursday, 13 September 2007, 8:27 am
Nathaniel Tan has emailed me his response to the Parliament reply of the Prime Minister, Datuk Seri Abdullah Ahmad on Tuesday claiming that the actions against Nat and Raja Petra Kamarudin were not the “beginning of a clampdown on bloggers” but were normal actions taken against individuals who “break the law”.
Abdullah said the government will not restrict the free flow of information on the Internet but warned that the government will not hesitate to act against bloggers who flout the law.
He said Nat’s arrest and the police report against Raja Petra were usual procedures followed by the police and that such actions do not mean that the government is stifling dissent.
This is the response from Nat, who was detained and investigated for alleged breach of Section 8 of the Official Secrets Act 1972 relating to a comment left on his blog linking Deputy Internal Security Minister Mohd Johari Baharum to a corruption allegation.
Is Kidnapping Standard Police Procedure?
I am terribly saddened by the fact that Prime Minister Abdullah Badawi would claim that the police actions taken against me could be considered the “normal process of law” and “standard procedure.”
What he seems to be saying is that standard procedure includes: Read the rest of this entry »
Financial strenth, economic resilience
Posted by Kit in Economics, Parliament on Thursday, 13 September 2007, 7:11 am
Maintaining Islamic Finance Leadership
As highlighted in the previous years’ budget, Malaysia has progressed significantly in the development of Islamic financial services, especially in terms of the size of investments and an increase in the number of institutions. Malaysia was the first to issue a global sukuk in 2002, as well as the first country where supranationals have issued ringgit-denominated Islamic bonds, namely the International Finance Corporation with an issuance of RM500 million and the World Bank, RM2 billion. In 2006, Malaysia was the largest issuer of Islamic bonds in the global capital market, accounting for USD30 billion, which is more than 70% of the overall global issuance of USD41 billion.
With the continued growth of importance in Islamic finance, we want to encourage more of this business to come to Malaysia. There is approximately US$500 billion of funds within the Islamic finance system, growing at around 15% annually. In the Gulf and Asia, Standard & Poor’s estimates that 20 per cent of banking customers would now spontaneously choose an Islamic financial product over a conventional one with a similar risk-return profile.
However the market’s growth in importance has also attracted some of the largest capital markets in the world such as the United Kingdom and Singapore to develop financial services and products to capture this market, which will result in a loss of market share for Malaysia. For example, one of the largest sukuk to date issued by Dubai Ports was written out of the London office of Barclays Capital in January 2006. And in August 2006, the first billion dollar sukuk to be listed on the London Stock Exchange raised £2.5 billion (US$5 billion). In addition, ambitious plans have been announced to make London the western capital of Islamic finance as the government announced tax relief for sukuk in March this year.
Nearer home, Singapore is increasingly serving as a bridge between the Middle East and Asia. More Middle Eastern banks are setting up in Singapore, which is experiencing double-digit growth in funds originating from the Middle East, for investment in Asian capital markets and real estate. Given Singapore’s lead in the Over-The-Counter (OTC) derivative market as the fourth-largest foreign exchange trading centre in the world, they will certain provide stiff competition for Malaysia. Read the rest of this entry »
Why the RM8.1 billion difference between Abdullah’s 2008 Budget speech and Treasury 2007/2008 Economic Report?
Posted by Kit in Abdullah Ahmad Badawi, Parliament on Wednesday, 12 September 2007, 9:20 pm
In his 2008 Budget speech in Parliament last Friday, Prime Minister-cum-Finance Minister Datuk Seri Abdullah Ahmad Badawi announced an appropriation of RM176.9 billion comprising RM128.8 billion for Operating Expenditure and RM48.1 billion for Development Expenditure.
This was backed up by the Ministry of Finance Statement of the 2008 Federal Expenditure Estimates tabled in the House during the budget presentation (Command Paper 12 of 2007).
However, in another Ministry of Finance document, the Economic Report 2007/2008, (Command paper 2 of 2007),which was also tabled in Parliament at the same time, a completely different set of figures was provided.
Chapter 4 of the Economic Report 2007/2008 on “Public Sector Finance”, in its section on “Outlook for 2008”, states: “This Budget will allocate a total of RM168,799 million, an increase of 2.5% over 2007. Of this, RM128,799 million is for operating expenditure and the balance of RM40,000 million for development expenditure”. (p 96)
These different set of figures were backed up the Table 4.1 on “Federal Government Financial Position 2006-2008” (p 77).
How could there be such a huge difference of RM8.1 billion for the 2008 Development Estimates between Abdullah’s budget presentation and Finance Ministry Statement on the one hand and the Finance Ministry’s Economic Report 2007/2008, all presented to Parliament on the same day last Friday? Read the rest of this entry »
Optimising Human Capital
Posted by Kit in Education, Parliament on Wednesday, 12 September 2007, 1:29 pm
The economic contribution from natural resources, especially in oil and gas is expected to decline over the next 20 years as our reserves runs dry. As revenue from oil and gas constitutes more than 40% of the overall Government budget, there is a serious challenge in sourcing alternative sources of revenue to sustain Government expenditure at current levels.
The direct source of replacement contribution towards greater economic productivity in the light of the above will be by substantially raising human capital. With the right quality of human capital, many countries around the world which are not as blessed with natural resources have recorded significant growth above and beyond what we have achieved.
In light of the above, the DAP proposes legislating that at least 50% of our windfall revenues from the oil and gas sector shall be allocated to building human capacity, particularly in Education and Training, above and beyond their normal allocation. This will ensure that our windfall revenues will be productively invested in our most important assets, in particular, the young Malaysians.
We will give every child access to a first-rate education. In every school, the focus will now be on quality. More teachers will be deployed to ensure that there will be more time to plan for quality and innovation in teaching. Our schools must encourage creation of new ideas and creative thinking via different types of classrooms, different styles and different methods, but all with a strong emphasis in quality. Read the rest of this entry »
PM should immediately respond to urgent issues raised in 2008 budget debate like PKFZ scandal and e-kesihatan and not wait until early Nov
Posted by Kit in Good Governance, Parliament on Wednesday, 12 September 2007, 1:01 pm
I call on the Prime Minister, Datuk Seri Abdullah Ahmad Badawi, who is also the Finance Minister, to respond to urgent issues raised in the first three days of the 2008 Budget and not to delay for some two months until early November — particularly on pressing public interest issues like the RM4.6 billion Port Klang Free Zone bailout scandal and the outcry over the new rip-off of the e-kesihatan monopoly concession awarded to Supremme Systems Sdn. Bhd without tender.
The Dewan Rakyat will adjourn for a 39-day break over the fasting month and Hari Raya holidays, resuming on October 22. This would mean that the 13-day general debate for the 2008 Budget before the ministerial reply would be broken up into two parts, three days this week and 10 days from 22nd October to 6th November, with Ministers beginning their reply on November 7, 2007.
There is something very wrong with the whole notion that issues raised in Parliament during the first three days of the 2008 Budget this week are only answered by Ministers two months later — especially with regard to pressing public interest issues demanding immediate response and action, particularly urgent matters like the RM4.6 billion Port Klang Free Zone (PFKZ) bailout scandal and the outcry over the new rip-off of the e-kesihatan monopoly concession awarded to Supremme Systems Sdn. Bhd without tender.
Accountability, transparency, integrity and good governance principles demand instant end of the government’s denial syndrome both in and outside Parliament about the RM4.6 billion PKFZ bailout scandal — particularly at a time when the Prime Minister and Cabinet Ministers are trying to assure Malaysians that they meant business and would not brook any hanky-panky following the shocking exposes of the pervasive culture of impunity, corruption, waste and mismanagement of public funds in the 2006 Auditor-General’s Report.
Abdullah said in Kuching yesterday that he had directed all Cabinet ministers to go through the Auditor-General’s report in detail and to fully explain anything that is questionable. Read the rest of this entry »
Reliance on Oil & Gas
Posted by Kit in Economics, Parliament on Wednesday, 12 September 2007, 10:27 am
Malaysia is a country blessed with abundant natural resources. In particular, we are thankful that the country is rich in oil and gas, which created Malaysia’s sole representative in the Fortune 500, Petroliam Nasional Berhad (Petronas).
In the most recent financial year ending March 2007, Petronas achieved record profits before tax of RM76.3 billion thanks to record high crude oil prices which increased from under US$25 per barrel to above US$70 all within four years.
Of greatest importance, was the fact that Petronas contributed RM53.7 billion to our national coffers in taxes, royalties, dividends and export duties last year.
Contribution from Petronas and other oil and gas companies operating in Malaysia was budgeted to make up some 46.8% of the government revenue for 2007.
This represents a steep increase from approximately 30% in 2006 and 25% in 2004. These statistics marks Malaysia’s heavy reliance on oil and gas industry today.
Malaysia’s abundance of oil & gas resources is akin to striking lottery. It is a once-off affair, and at some point of time, our reserves will run dry.
According to Oil & Gas Journal, Malaysia held proven oil reserves of 3.0 billion barrels as of January 2007, down from a peak of 4.6 billion barrels in 1996. These reserves will last us for only another 20 years or so.
In addition, Malaysia is expected to become a net oil importer by 2010 assuming a conservative growth of 4% in petroleum products consumption. Our trade current account surplus has also been boosted significantly by oil and gas related products which constitutes more than 11% of our exports.
The frightful acceleration of dependence on our limited oil and gas resources places the country’s economy at great risks. Read the rest of this entry »
Challenges of globalisation
Posted by Kit in Economics, Parliament on Wednesday, 12 September 2007, 10:20 am
Globalisation brings both new threats and opportunities for the Malaysian economy. Should we rest on our laurels and continue to believe that we can be sheltered by the proverbial coconut shell, it will only result in irreparable damage to the economy. However, if we were to instil in our economy the spirit of resilience as well as the ethics of competition, hard work and innovation, Malaysia will be able to achieve its full potential via the vast opportunities provided by globalisation.
Today, capital, enterprise and talent are flowing to countries where government can be trusted, where the workforce is well-educated and skilled, and where the quality of life is high. These are key pillars of our economy and our country which we must build in order to reap the full benefits of globalisation.
Malaysia used to attract some of the biggest technological giants such as Intel, Motorola and Dell to develop and manufacture their latest technologies in the country. However, in the past decade, we have clearly fallen behind in terms of advancement in manufacturing technology. For example, Malaysia’s current leading semi-conductor wafer-fabricator, SilTerra Malaysia Sdn Bhd offers major foundry compatible CMOS logic, high-voltage and mixed-signal/RF technologies down to 130 nanometer feature size. SilTerra’s wafer fab has a design capacity of 40,000 eight-inch wafers per month.
However, semi-conductor technology has advanced significantly with state-of-the-art 90-nm technology on 300-mm wafers, and 65-nm production. In fact, 45-nm process technology is now under aggressive development. Our neighbours, Singapore, for example, is attracting more of the ‘first-of-its-kind’ investments such as the chip used in the latest PlayStation3 and Xbox. A French semiconductor company, Soitec, is investing $700 million to set up in Singapore its first offshore facility to make the wafer for this chip. It is high precision, high technology. The wafers have alternating layers of silicon and insulator, unlike conventional wafers which use silicon throughout. Singapore became the only country in Asia that it trusts well enough to set up its first manufacturing campus outside of France. Hence, it is key for Malaysia, in the age of globalisation, to bring back global investments in leading age technologies. Read the rest of this entry »
Economic Prospects — Dangerous Times ahead
Posted by Kit in Abdullah Ahmad Badawi, Economics, Parliament on Wednesday, 12 September 2007, 8:52 am
The budget offers the rosy view that the Malaysian economy will continue to be resilient, with a projected growth of between six and 6.5 percent in 2008.
The economic prospects need to be placed in perspective. First and foremost, the external economic environment has sharply deteriorated and the international agencies and governments of the developed countries have turned bearish on global economic growth prospects in the wake of the US sub-prime crisis. Some analysts have even gone so far as predicting a recession.
Malaysia, as an open economy, is not immune from these adverse developments. History indicates that a global slowdown impacts on Malaysia in a magnified manner — lower exports linked to weak demand and lower commodity prices; lowered inflows of capital and through multiplier effects contributing to lower domestic economic activity, lower domestic investment, and lower government revenues which in turn force the government to increase borrowing with the inevitable growth in the deficit.
Thus, the over-optimistic assumptions and forecasts lack credibility. The prognosis for 2008 must thus be viewed at best as one of increased uncertainty and heightened risk.
A more realistic assessment would be that Malaysia may face an economic crisis and will need to change course to withstand the looming economic storm. It cannot continue on the present path. It is deeply troubling that the Government does not appear to have recognized the perilous circumstances that are now unfolding. Read the rest of this entry »
Liong Sik’s last act as Transport Minister on May 28, 2003 – unlawfully signing first of four “Letters of Support” for KDSB bonds resulting in RM4.6b PKFZ bailout scandal?
Posted by Kit in Good Governance, Parliament, Transport on Tuesday, 11 September 2007, 3:48 pm
The Prime Minister-cum-Finance Minister, Datuk Seri Abdullah Ahmad Badawi began his 2008 budget speech reminding Malaysians of its significance and historic circumstances — on the occasion of the nation’s 50th Merdeka anniversary celebrations and the first Budget as the nation enters the second 50-year phase as an independent state.
To me, the 2008 budget was even more significant — as it was an acid test as to whether the Prime Minister was finally going to “walk the talk” of his National Integrity Plan and keep his pledge to Malaysians that he would lead a clean, incorruptible, accountable, transparent, trustworthy and responsible administration and that he would not countenance the culture of impunity among his Ministers and public officials — or whether he would break his final pledge that he would not approve mega-billion-ringgit bailout of “white-elephant” projects (as all his other pledges of good governance have already been broken).
I was very disappointed by Abdullah’s 2008 Budget, for he had failed this acid test.
There was not a word about the RM4.6 billion Port Klang Free Zone (PKFZ) bailout scandal — the largest financial scandal at the start of any Prime Minister in Malaysia, even bigger than the RM2.5 billion Bumiputra Malaysia Finance (BMF) scandal which led off the Mahathir premiership more than two decades ago.
Tun Dr. Mahathir had said at the time that the RM2.5 billion BMF scandal was a “heinous crime without criminals”. Are we having another bigger “heinous crime without criminals” in the form of the RM4.6 billion PKFZ scandal under the Abdullah administration?
Abdullah had failed as both Prime Minister and Finance Minister in not giving a full and satisfactory accounting of the government bailout of the RM4.6 billion Port Klang Free Zone (PKFZ) scandal to set an example of government accountability and financial integrity to all Ministers, Deputy Ministers and Parliamentary Secretaries.
This is because in the past two weeks, the Transport Minister, Datuk Chan Kong Choy (before he suddenly went on medical leave, sparking political speculation whether he is resigning from the Cabinet), the Deputy Finance Minister, Datuk Dr. Awang Adek bin Husin and the Parliamentary Secretary to the Finance Ministry, Datuk Seri Dr. Helmi bin Yahaya had been misleading Parliament and the nation about the true nature and character of the RM4.6 billion PKFZ bailout scandal. Read the rest of this entry »
E-kesihatan – another parasitic rent-seeking monopoly?
Posted by Kit in Good Governance, Health on Tuesday, 11 September 2007, 2:56 pm
The medical profession is up in arms against the latest e-Kesihatan scheme which was officially announced by the Road Transport Department (JPJ) deputy director-general Solah Mat Hassan yesterday, requiring drivers of commercial vehicles from next month to pass a medical test done at clinics appointed by an associate company of Fomema Sdn. Bhd, Supremme Systems Sdn Bhd.
Supremme Systems Sdn. Bhd has been awarded a monopoly to carry out such medical tests which would enable it to make profits in the region of hundreds of millions of ringgit in the 15-year monopoly awarded by the Transport Ministry.
This appears to be the latest example of a parasitic rent-seeking rip-off at the expense of the public as there is already a system in place to provide medical tests for commercial drivers involving medical practitioners with the JPJ directly, which can be further improved to deal with abuses or weaknesses instead of creating a new system which is more rent-seeking in nature than entrepreneurial.
I have received an email from an infuriated medical practitioner on the letter of registration sent by Supremme Systems Sdn Bhd, a subsidiary of Pantai Holding Sdn Bhd to primarycare doctors in the Klang Valley to pay RM100.00 as registration fee and requesting particulars of each clinic.
The letter states that to participate in the medical examination of Goods Drivers Licence (GDL) and Public Service Vehicle (PSC) licence renewal annually by commercial vehicle drivers, the private doctors must use their ICT. This letter demands reply and payment within 10 days. Read the rest of this entry »
