By CHOI TUCK WO
LONDON: Tun Dr Mahathir Mohamad has called for the closure of banks that caused the global financial crisis instead of bailing them out.
The former prime minister lambasted the West for pumping in billions of dollars to resuscitate these “failed institutions”.
He said they should be allowed to go under as bankers were rewarding themselves with fat bonuses rather than be punished for their inefficiencies.
“Let’s start new banks. We don’t need to have banks with those names anymore as they are a disgrace,” he said in his talk ‘The Alternative G20 Agenda: Real Financial Fairness’ at the Royal Commonwealth Society here on Wednesday.
More than 200 people attended the event on the eve of the G20 summit.
In his usual hard-hitting style, Dr Mahathir said there should be no attempt by governments to rebuild institutions which have failed.
“If they must dole out money, give it to the people who suffered actual losses due to the banks’ failure, but not to the bankers,” he said.
He questioned the logic of rewarding bankers who caused the economic crisis, saying those who created trouble were normally put in prison.
Dr Mahathir also took a dig at hedge funds, saying their borrowings should be limited and not be 20 or 30 times more than the investments.
“Imagine if a hedge fund were to borrow US$30mil and trades on US$20mil based on a US$1mil investment, the profits would be far bigger than that of the original investment,” he said.
He said a stop should be put in creating money out of nothing, adding everyone must come clean instead of obtaining false wealth through shuffling papers. “Most of the wealth comes from playing around with money. You can sell currencies and make tons of money,” he said, adding they were not derived solely from producing goods and services anymore.
He called for a review of the international monetary, financial and banking system which had suffered a systematic collapse due to gross abuses.
Dr Mahathir said the global community could elect people to represent the differing economies and work together in curbing financial abuses.
“If we’re going to be fair – real financial fairness – we should give everybody a say in the formulation of a new banking, financial and monetary system.”
Friday, April 3, 2009
G-20 Leaders Blacklist Malaysia As One Of 4 Tax Havens
LONDON: Four nations were blacklisted as uncooperative tax havens after G-20 leaders declared the age of banking secrecy was over and said they would no longer tolerate shady havens draining away badly needed tax revenue.
At the request of the Group of 20 summit of rich and developing nations, the Organization for Economic Cooperation and Development named the Philippines, Uruguay, Costa Rica and the Malaysian territory of Labuan as the worst offenders, saying they had refused to adopt new rules on financial openness.
Leaders also said Thursday that nations that refuse to exchange tax information could in the future face tough sanctions - including the withdrawal of financing by the World Bank or International Monetary Fund.
"The time of banking secrecy has passed," French President Nicholas Sarkozy said following the summit. "Everyone around the table wants an end to tax havens. Everyone knows we need sanctions."
The announcement reflects mounting concern that banking secrecy in tax havens has helped to worsen the economic crisis by disguising the true value of some global assets.
Anti-poverty activists say such places provide corrupt officials places to stash illicit funds, often depriving poor nations of needed resources.
The OECD has divided countries into three categories: those who comply with rules on sharing tax information, those who say they will but have yet to act and nations which have not yet agreed to change banking secrecy practices.
Switzerland and Liechtenstein, which both have strong banking secrecy traditions, said last month they would adopt international rules on tax cooperation and were ready to comply with G-20 demands.
Liechtenstein, Switzerland's tiny Alpine neighbor, said it has already met with British officials to prepare for the new standards. Monaco said earlier that it would be more transparent with foreign tax authorities.
In return they were spared the fate of being blacklisted but were left in a gray area of countries that still have to implement their commitment to accept new information-exchange standards. China supported the blacklisting, but would not agree to have two territories, Hong Kong and Macau, classified as uncooperative tax havens.
Potential sanctions for transgressors include extra audits of those who use tax havens and curbs on tax deductions claimed by businesses using the territories.
In their communique, leaders said they may consider further penalties in their bilateral relations with tax haven territories. German Chancellor Angela Merkel said Brown and President Barack Obama played a key role in pushing for a crackdown on tax havens.
At least 35 offshore tax havens, from Britain's Channel Islands to the Cayman Islands in the Caribbean, are under increasing pressure to provide more information to international authorities to prevent people from evading taxes or hiding income by shifting money to such places.
Stephen Timms, financial secretary to the British Treasury, said a culture of banking secrecy had worsened global economic problems.
"That lack of transparency - that opaqueness - has contributed to the severity of the problems we are seeing in the world economy at the moment," he said. - AP
At the request of the Group of 20 summit of rich and developing nations, the Organization for Economic Cooperation and Development named the Philippines, Uruguay, Costa Rica and the Malaysian territory of Labuan as the worst offenders, saying they had refused to adopt new rules on financial openness.
Leaders also said Thursday that nations that refuse to exchange tax information could in the future face tough sanctions - including the withdrawal of financing by the World Bank or International Monetary Fund.
"The time of banking secrecy has passed," French President Nicholas Sarkozy said following the summit. "Everyone around the table wants an end to tax havens. Everyone knows we need sanctions."
The announcement reflects mounting concern that banking secrecy in tax havens has helped to worsen the economic crisis by disguising the true value of some global assets.
Anti-poverty activists say such places provide corrupt officials places to stash illicit funds, often depriving poor nations of needed resources.
The OECD has divided countries into three categories: those who comply with rules on sharing tax information, those who say they will but have yet to act and nations which have not yet agreed to change banking secrecy practices.
Switzerland and Liechtenstein, which both have strong banking secrecy traditions, said last month they would adopt international rules on tax cooperation and were ready to comply with G-20 demands.
Liechtenstein, Switzerland's tiny Alpine neighbor, said it has already met with British officials to prepare for the new standards. Monaco said earlier that it would be more transparent with foreign tax authorities.
In return they were spared the fate of being blacklisted but were left in a gray area of countries that still have to implement their commitment to accept new information-exchange standards. China supported the blacklisting, but would not agree to have two territories, Hong Kong and Macau, classified as uncooperative tax havens.
Potential sanctions for transgressors include extra audits of those who use tax havens and curbs on tax deductions claimed by businesses using the territories.
In their communique, leaders said they may consider further penalties in their bilateral relations with tax haven territories. German Chancellor Angela Merkel said Brown and President Barack Obama played a key role in pushing for a crackdown on tax havens.
At least 35 offshore tax havens, from Britain's Channel Islands to the Cayman Islands in the Caribbean, are under increasing pressure to provide more information to international authorities to prevent people from evading taxes or hiding income by shifting money to such places.
Stephen Timms, financial secretary to the British Treasury, said a culture of banking secrecy had worsened global economic problems.
"That lack of transparency - that opaqueness - has contributed to the severity of the problems we are seeing in the world economy at the moment," he said. - AP
Najib Sworn In As Malaysia's Sixth Prime Minister
KUALA LUMPUR: Datuk Seri Najib Tun Razak was sworn in as Malaysia’s sixth prime minister Friday, taking over from Datuk Seri Abdullah Ahmad Badawi who stepped down after leading the country for over five years.
Najib 55, took his oath of office before Yang di Pertuan Agong Tuanku Mizan Zainal Abidin at Istana Negara.
Dressed in a black baju Melayu complete with sampin, Najib arrived at the palace, accompanied by his wife, Datin Seri Rosmah Mansor. Together they entered the Balairong Seri at 10am, followed by Abdullah and his wife, Datin Seri Jeanne Abdullah.
Najib signing his letter of appointment as Prime Minister.
A total of 319 guests, including former prime minister Tun Dr Mahathir Mohamad and his wife, Tun Dr Siti Hasmah Mohd Ali, attended the historic event.
The ceremony, steeped in tradition, began when Tuanku Mizan and Raja Permaisuri Agong Tuanku Zahirah entered the throne room at 10.05am and the national anthem was played by the Malaysian Armed Forces band.
After taking his oaths of office, loyalty and confidentiality, Najib signed the four instruments of appointment, followed by the reading of the doa selamat.
The instruments of appointment were then signed by Court of Appeal President Tan Sri Alauddin Mohd Sheriff as witness and handed over to Chief Secretary to the Government, Tan Sri Mohd Sidek Hassan.
At the same ceremony, Abdullah was conferred the nation’s highest award, the Seri Maharaja Mangku Negara (SMN), while Jeanne received the Seri Setia Mahkota (SSM) by Tuanku Mizan. Both awards carry the title Tun.
The handing over of the prime minister’s duties from Abdullah to Najib is scheduled to take place at 4pm at the Prime Minister’s Office in Putrajaya.
Najib was born in Kuala Lipis, Pahang, on July 23, 1953, and is the eldest son of the late Tun Abdul Razak Hussein, the nation’s second prime minister, and Tun Rahah Mohd Noah.
His appointment is most significant in the country’s history in that this is the first time that a prime minister’s son is holding the post.
His leadership capability began to surface when he was elected Pekan Umno division Youth head in 1976 and he went on to become the country’s youngest Member of Parliament at the age of 22 when he won the Pekan seat unopposed in a by-election following his father’s death.
He then went from strength-to-strength in politics and Government to reach the pinnacle as Umno president and Malaysia’s prime minister. - Bernama
Najib 55, took his oath of office before Yang di Pertuan Agong Tuanku Mizan Zainal Abidin at Istana Negara.
Dressed in a black baju Melayu complete with sampin, Najib arrived at the palace, accompanied by his wife, Datin Seri Rosmah Mansor. Together they entered the Balairong Seri at 10am, followed by Abdullah and his wife, Datin Seri Jeanne Abdullah.
Najib signing his letter of appointment as Prime Minister.
A total of 319 guests, including former prime minister Tun Dr Mahathir Mohamad and his wife, Tun Dr Siti Hasmah Mohd Ali, attended the historic event.
The ceremony, steeped in tradition, began when Tuanku Mizan and Raja Permaisuri Agong Tuanku Zahirah entered the throne room at 10.05am and the national anthem was played by the Malaysian Armed Forces band.
After taking his oaths of office, loyalty and confidentiality, Najib signed the four instruments of appointment, followed by the reading of the doa selamat.
The instruments of appointment were then signed by Court of Appeal President Tan Sri Alauddin Mohd Sheriff as witness and handed over to Chief Secretary to the Government, Tan Sri Mohd Sidek Hassan.
At the same ceremony, Abdullah was conferred the nation’s highest award, the Seri Maharaja Mangku Negara (SMN), while Jeanne received the Seri Setia Mahkota (SSM) by Tuanku Mizan. Both awards carry the title Tun.
The handing over of the prime minister’s duties from Abdullah to Najib is scheduled to take place at 4pm at the Prime Minister’s Office in Putrajaya.
Najib was born in Kuala Lipis, Pahang, on July 23, 1953, and is the eldest son of the late Tun Abdul Razak Hussein, the nation’s second prime minister, and Tun Rahah Mohd Noah.
His appointment is most significant in the country’s history in that this is the first time that a prime minister’s son is holding the post.
His leadership capability began to surface when he was elected Pekan Umno division Youth head in 1976 and he went on to become the country’s youngest Member of Parliament at the age of 22 when he won the Pekan seat unopposed in a by-election following his father’s death.
He then went from strength-to-strength in politics and Government to reach the pinnacle as Umno president and Malaysia’s prime minister. - Bernama
Highlights Of Pak Lah Premiership
2003
OCT 31: Datuk Seri Abdullah Ahmad Badawi takes over as Malaysia’s fifth prime minister.
DEC 11: The controversial RM14.5bil railway double-tracking project is postponed.
2004
JAN 6: Datuk Seri Najib Tun Razak is named Deputy Prime Minister.
MARCH 21: After the shortest campaign period in history, Barisan Nasional wins a landslide victory in the 11th General Election, taking 198 out of 219 parliamentary seats. Barisan also recaptures Terengganu from PAS.
MARCH 27: Abdullah announces his first Cabinet with 14 new faces and three new ministries: Natural Resources and Environment, Federal Territories and Higher Education.
APRIL 23: Abdullah launches the five-year National Integrity Plan (NIP) aimed at promoting an accountable and corrupt-free society.
JULY 18: Abdullah wins the Umno presidency unopposed.
SEPT 10: Abdullah presents his first Budget as head of the Government and Finance Minister.
SEPT 23: Abdullah launches the Islam Hadhari (Civilisational Islam) concept in his opening address at the Umno general assembly.
OCT 31: Pak Lah completes his first year as Prime Minister and identified his biggest challenge: the need to change the mindset of the people in implementing projects and decisions.
DEC 26: Several states are struck by the Indian Ocean tsunami that was triggered by a massive earthquake off the coast of Sumatra. Pak Lah cancelled his leave to return to the country.
2005
FEB 2: Abdullah talks of building Malays into “towering” personalities. He said the towering Malays would be well-rounded people who have developed a high intellect and value system, a successful career, good economic standing and a well-respected culture and religion.
APRIL 24: Malaysia and Singapore sign a Settlement Agreement, bringing an end to the dispute over the republic’s land reclamation in the Straits of Johor.
MAY 13: The Royal Commission to Enhance the Operation and Management of the Royal Malaysia Police recommends that an Independent Police Complaints and Misconduct Commission be set up to oversee the force and deal with misconduct.
JULY 21: Malaysia removes its currency peg to the US dollar for a managed float against a basket of trade-weighted currencies.
OCT 20: Abdullah’s wife Datin Paduka Seri Endon Mahmood, 64, dies after a long battle with breast cancer.
2006
APRIL 12: Malaysia cancels the bridge to replace the Causeway.
OCT 22: Abdullah and Dr Mahathir meet for a face-to-face meeting for the first time since the latter’s controversial criticism of the Prime Minister’s policies.
NOV 4: The South Johor Economic Region, officially named as Iskandar Development Region, was launched at Danga Bay in Johor Baru.
2007
JAN 16: Abdullah launches the National Education Blueprint 2006-2010, a comprehensive fiveyear plan that aimed to level the playing field in education for all Malaysians.
FEB 7: A special task force called Special Task Force to Facilitate Business, or Pemudah, to smooth out kinks in the government delivery system and cut red tape, is formed.
MARCH 31: Abdullah tables the RM220bil Ninth Malaysia Plan in Parliament.
MAY 21: Abdullah announces a pay increase of between 7.5% and 35% for the country’s more than one million government employees effective July 1.
JUNE 9: Abdullah marries Datin Seri Jeanne Abdullah.
JULY 30: Abdullah launches the RM177bil Northern Corridor Economic Region.
AUG 27: Abdullah launches the National Higher Education Strategic Plan and the National Higher Education Action Plan 2007-2010 aimed at producing better quality graduates.
SEPT 25: The Government announces the formation of an independent panel to check the authenticity of a video clip purportedly showing lawyer Datuk V. K. Lingam brokering the appointment and promotion of judges with a senior judge.
OCT 29: Pak Lah launches the East Coast Economic Region in Kuala Terengganu.
NOV 25: The Hindu Rights Action Force holds a demonstration, forcing the police to use tear gas and water cannons to disperse the crowd.
2008
FEB 11: Abdullah launches the Sarawak Corridor of Renewable Energy in Bintulu.
FEB 13: Parliament is dissolved to pave the way for the 12th general election. Nomination day was fixed for Feb 24 and polling day on March 8.
MARCH 8: Barisan gets its worst election results in history, losing five states to the Opposition and its two-thirds majority by winning only 140 parliamentary seats out of 222.
MARCH 10: Abdullah is sworn in as Prime Minister for a second term.
MARCH 14: Datuk Dr Md Isa Sabu is announced as the new Perlis Mentri Besar. Former MB Datuk Seri Shahidan Kassim had been Barisan’s choice.
MARCH 18: Abdullah unveils a smaller Cabinet.
MARCH 22: Datuk Ahmad Said is announced as the new Mentri Besar of Terengganu instead of Datuk Seri Idris Jusoh, which was Barisan’s original choice.
APRIL 17: Abdullah announces a proposal to form a Judicial Appointments Commission and the giving of goodwill ex-gratia payments to six judges who were sacked during the 1988 judicial crisis.
MAY 9: The findings of the Royal Commission on the controversial Datuk V.K. Lingam showed that the clip was authentic. It identified former Chief Justice Tun Ahmad Fairuz Sheikh Abdul Halim as the person talking to Lingam on the telephone.
MAY 23: The International Court of Justice rules that Singapore has sovereignty over the disputed Pulau Batu Puteh while Malaysia owns Middle Rock.
JUNE 6: Abdullah announces costcutting measures, aimed at saving RM2bil.
JULY 10: Abdullah announces that he will step down as Prime Minister in June 2010 and hand over power to Najib.
SEPT 10: Then Umno vicepresident Tan Sri Muhyiddin Yassin calls on Abdullah to rethink his transition plan to step down by 2010 as the timeframe was too long.
SEPT 17: Abdullah and Najib swap portfolios as part of the transition plan. Abdullah is the new Defence Minister while Najib has taken over the Finance portfolio. Sabah Progressive Party president Datuk Yong Teck Lee also announces that his party is pulling out of Barisan Nasional but will not be joining Pakatan Rakyat.
OCT 8: Abdullah says he will step down as Prime Minister and Umno president in March and support Najib to take over.
DEC 17: The Dewan Rakyat passes the Judicial Appointments Commission Bill.
2009
MARCH 1: The Malaysian Anti- Corruption Commission (MACC) comes into being.
MARCH 10: The Government unveiles a fiscal stimulus package amounting to RM60bil, the largest ever, with an aim to prevent the country from slipping into a recession.
MARCH 23: The Witness Protection Bill is passed by the Dewan Rakyat.
APRIL 2: Abdullah has an audience with Yang di-Pertuan Agong Tuanku Mizan Zainal Abidin to seek consent to resign as Prime Minister and for Najib to take over.
Source: TheStar
OCT 31: Datuk Seri Abdullah Ahmad Badawi takes over as Malaysia’s fifth prime minister.
DEC 11: The controversial RM14.5bil railway double-tracking project is postponed.
2004
JAN 6: Datuk Seri Najib Tun Razak is named Deputy Prime Minister.
MARCH 21: After the shortest campaign period in history, Barisan Nasional wins a landslide victory in the 11th General Election, taking 198 out of 219 parliamentary seats. Barisan also recaptures Terengganu from PAS.
MARCH 27: Abdullah announces his first Cabinet with 14 new faces and three new ministries: Natural Resources and Environment, Federal Territories and Higher Education.
APRIL 23: Abdullah launches the five-year National Integrity Plan (NIP) aimed at promoting an accountable and corrupt-free society.
JULY 18: Abdullah wins the Umno presidency unopposed.
SEPT 10: Abdullah presents his first Budget as head of the Government and Finance Minister.
SEPT 23: Abdullah launches the Islam Hadhari (Civilisational Islam) concept in his opening address at the Umno general assembly.
OCT 31: Pak Lah completes his first year as Prime Minister and identified his biggest challenge: the need to change the mindset of the people in implementing projects and decisions.
DEC 26: Several states are struck by the Indian Ocean tsunami that was triggered by a massive earthquake off the coast of Sumatra. Pak Lah cancelled his leave to return to the country.
2005
FEB 2: Abdullah talks of building Malays into “towering” personalities. He said the towering Malays would be well-rounded people who have developed a high intellect and value system, a successful career, good economic standing and a well-respected culture and religion.
APRIL 24: Malaysia and Singapore sign a Settlement Agreement, bringing an end to the dispute over the republic’s land reclamation in the Straits of Johor.
MAY 13: The Royal Commission to Enhance the Operation and Management of the Royal Malaysia Police recommends that an Independent Police Complaints and Misconduct Commission be set up to oversee the force and deal with misconduct.
JULY 21: Malaysia removes its currency peg to the US dollar for a managed float against a basket of trade-weighted currencies.
OCT 20: Abdullah’s wife Datin Paduka Seri Endon Mahmood, 64, dies after a long battle with breast cancer.
2006
APRIL 12: Malaysia cancels the bridge to replace the Causeway.
OCT 22: Abdullah and Dr Mahathir meet for a face-to-face meeting for the first time since the latter’s controversial criticism of the Prime Minister’s policies.
NOV 4: The South Johor Economic Region, officially named as Iskandar Development Region, was launched at Danga Bay in Johor Baru.
2007
JAN 16: Abdullah launches the National Education Blueprint 2006-2010, a comprehensive fiveyear plan that aimed to level the playing field in education for all Malaysians.
FEB 7: A special task force called Special Task Force to Facilitate Business, or Pemudah, to smooth out kinks in the government delivery system and cut red tape, is formed.
MARCH 31: Abdullah tables the RM220bil Ninth Malaysia Plan in Parliament.
MAY 21: Abdullah announces a pay increase of between 7.5% and 35% for the country’s more than one million government employees effective July 1.
JUNE 9: Abdullah marries Datin Seri Jeanne Abdullah.
JULY 30: Abdullah launches the RM177bil Northern Corridor Economic Region.
AUG 27: Abdullah launches the National Higher Education Strategic Plan and the National Higher Education Action Plan 2007-2010 aimed at producing better quality graduates.
SEPT 25: The Government announces the formation of an independent panel to check the authenticity of a video clip purportedly showing lawyer Datuk V. K. Lingam brokering the appointment and promotion of judges with a senior judge.
OCT 29: Pak Lah launches the East Coast Economic Region in Kuala Terengganu.
NOV 25: The Hindu Rights Action Force holds a demonstration, forcing the police to use tear gas and water cannons to disperse the crowd.
2008
FEB 11: Abdullah launches the Sarawak Corridor of Renewable Energy in Bintulu.
FEB 13: Parliament is dissolved to pave the way for the 12th general election. Nomination day was fixed for Feb 24 and polling day on March 8.
MARCH 8: Barisan gets its worst election results in history, losing five states to the Opposition and its two-thirds majority by winning only 140 parliamentary seats out of 222.
MARCH 10: Abdullah is sworn in as Prime Minister for a second term.
MARCH 14: Datuk Dr Md Isa Sabu is announced as the new Perlis Mentri Besar. Former MB Datuk Seri Shahidan Kassim had been Barisan’s choice.
MARCH 18: Abdullah unveils a smaller Cabinet.
MARCH 22: Datuk Ahmad Said is announced as the new Mentri Besar of Terengganu instead of Datuk Seri Idris Jusoh, which was Barisan’s original choice.
APRIL 17: Abdullah announces a proposal to form a Judicial Appointments Commission and the giving of goodwill ex-gratia payments to six judges who were sacked during the 1988 judicial crisis.
MAY 9: The findings of the Royal Commission on the controversial Datuk V.K. Lingam showed that the clip was authentic. It identified former Chief Justice Tun Ahmad Fairuz Sheikh Abdul Halim as the person talking to Lingam on the telephone.
MAY 23: The International Court of Justice rules that Singapore has sovereignty over the disputed Pulau Batu Puteh while Malaysia owns Middle Rock.
JUNE 6: Abdullah announces costcutting measures, aimed at saving RM2bil.
JULY 10: Abdullah announces that he will step down as Prime Minister in June 2010 and hand over power to Najib.
SEPT 10: Then Umno vicepresident Tan Sri Muhyiddin Yassin calls on Abdullah to rethink his transition plan to step down by 2010 as the timeframe was too long.
SEPT 17: Abdullah and Najib swap portfolios as part of the transition plan. Abdullah is the new Defence Minister while Najib has taken over the Finance portfolio. Sabah Progressive Party president Datuk Yong Teck Lee also announces that his party is pulling out of Barisan Nasional but will not be joining Pakatan Rakyat.
OCT 8: Abdullah says he will step down as Prime Minister and Umno president in March and support Najib to take over.
DEC 17: The Dewan Rakyat passes the Judicial Appointments Commission Bill.
2009
MARCH 1: The Malaysian Anti- Corruption Commission (MACC) comes into being.
MARCH 10: The Government unveiles a fiscal stimulus package amounting to RM60bil, the largest ever, with an aim to prevent the country from slipping into a recession.
MARCH 23: The Witness Protection Bill is passed by the Dewan Rakyat.
APRIL 2: Abdullah has an audience with Yang di-Pertuan Agong Tuanku Mizan Zainal Abidin to seek consent to resign as Prime Minister and for Najib to take over.
Source: TheStar
Pak Lah, We Thank You
The Stars Say . . .
Today, a new chapter begins for Malaysia, and for Datuk Seri Abdullah Ahmad Badawi.
A man who does not care too much for pomp and pageantry, Pak Lah’s stewardship of the country as Prime Minister from Oct 30, 2003 until he officially stepped down yesterday, will be judged differently in the years to come.
The media may be a chronicler of instant history but it is the historian who will have the perspective to look at both the positive and negative sides of Pak Lah’s ledger.
Pak Lah will be the first to admit that he has his flaws.
“Leaders are mere mortals,” he once said. “And mortals are imperfect.
“In seeking to better himself, man needs to be advised and to accept criticism. Therefore, advice and criticism should be constructive and rational, and offered with honesty and sincerity,” he said.
No one will dispute that the democratic space for open discussion of many issues rose many notches under Pak Lah.
Spurred on by the proliferation of new media technology, Pak Lah became the first Prime Minister to openly have to endure relentless attacks on both his policies and his personality.
Not all was sincere or honest. In fact, many bordered on slander and destruction.
But Pak Lah, being the man of the people, did not do what lesser leaders might have done. He kept the space open.
Pak Lah ascended to the highest political office in the land knowing full well that Malaysians had not had a change of leadership for 22 years. The shadow of the previous administration loomed large but his message struck a chord among the people.
He went to the people in 2004 for a mandate and we gave him an overwhelming landslide. It was to be the high point of his political career.
But the vagaries of politics are such that when he went back to the people in March 2008, the verdict turned the other way. It was, as he puts it, the lowest point of his political career.
Although there were many factors beyond his control, quite a number were probably the direct result of the actions of the administration he led.
The hope envisioned by his promises was a little too late in coming.
It is a testimony to the democrat in him that Pak Lah accepted the verdict of the people. Though the political landscape has changed tremendously, and remains hot to this day, he never resorted to any extra-constitutional measures to move things to his advantage.
It would be wrong to judge Pak Lah solely on his years as Prime Minister. He is, in fact, a man born to serve the country and he did. Pak Lah’s service to the nation is long and extensive.
As a politician, Pak Lah never used racial and religious issues to stoke the fires that cause disunity among the people. He was just too nice and too much of a statesman to want to play to the gallery.
He always put nation above self. And he never wavered from trying his best to be truly a Prime Minister for all Malaysians.
Yes, today marks a new chapter for the country. This is a defining moment in our history. It is also a poignant moment for Pak Lah.
Now that the burden of office that he has served so sincerely for the past 1,918 days has been lifted, we want to wish him well.
We pray he will enjoy good health and a peace that transcends all that the world can promise.
We, the people, thank you, Pak Lah.
Today, a new chapter begins for Malaysia, and for Datuk Seri Abdullah Ahmad Badawi.
A man who does not care too much for pomp and pageantry, Pak Lah’s stewardship of the country as Prime Minister from Oct 30, 2003 until he officially stepped down yesterday, will be judged differently in the years to come.
The media may be a chronicler of instant history but it is the historian who will have the perspective to look at both the positive and negative sides of Pak Lah’s ledger.
Pak Lah will be the first to admit that he has his flaws.
“Leaders are mere mortals,” he once said. “And mortals are imperfect.
“In seeking to better himself, man needs to be advised and to accept criticism. Therefore, advice and criticism should be constructive and rational, and offered with honesty and sincerity,” he said.
No one will dispute that the democratic space for open discussion of many issues rose many notches under Pak Lah.
Spurred on by the proliferation of new media technology, Pak Lah became the first Prime Minister to openly have to endure relentless attacks on both his policies and his personality.
Not all was sincere or honest. In fact, many bordered on slander and destruction.
But Pak Lah, being the man of the people, did not do what lesser leaders might have done. He kept the space open.
Pak Lah ascended to the highest political office in the land knowing full well that Malaysians had not had a change of leadership for 22 years. The shadow of the previous administration loomed large but his message struck a chord among the people.
He went to the people in 2004 for a mandate and we gave him an overwhelming landslide. It was to be the high point of his political career.
But the vagaries of politics are such that when he went back to the people in March 2008, the verdict turned the other way. It was, as he puts it, the lowest point of his political career.
Although there were many factors beyond his control, quite a number were probably the direct result of the actions of the administration he led.
The hope envisioned by his promises was a little too late in coming.
It is a testimony to the democrat in him that Pak Lah accepted the verdict of the people. Though the political landscape has changed tremendously, and remains hot to this day, he never resorted to any extra-constitutional measures to move things to his advantage.
It would be wrong to judge Pak Lah solely on his years as Prime Minister. He is, in fact, a man born to serve the country and he did. Pak Lah’s service to the nation is long and extensive.
As a politician, Pak Lah never used racial and religious issues to stoke the fires that cause disunity among the people. He was just too nice and too much of a statesman to want to play to the gallery.
He always put nation above self. And he never wavered from trying his best to be truly a Prime Minister for all Malaysians.
Yes, today marks a new chapter for the country. This is a defining moment in our history. It is also a poignant moment for Pak Lah.
Now that the burden of office that he has served so sincerely for the past 1,918 days has been lifted, we want to wish him well.
We pray he will enjoy good health and a peace that transcends all that the world can promise.
We, the people, thank you, Pak Lah.
Wednesday, April 1, 2009
Stronger Ringgit Seen By Year-End
Move by US to print money will increase supply and weaken the greenback
KUALA LUMPUR: The ringgit is expected to strengthen to 3.50 against the US dollar by year-end from between 3.60 and 3.65 currently.
According to Maybank Investment Bank Bhd chief economist Suhaimi Ilias, the US dollar is expected to weaken as the US government would have to find means to finance its huge fiscal deficit this year.
“It is highly likely they would have to print money, which is what they have started to do.
“The increase in supply would weaken the US dollar,” he said on the sidelines of the Financial Planning Seminar organised by Permodalan Nasional Bhd yesterday.
Meanwhile, the local banking sector is expected to weather the crisis without incidence, as stress tests conducted recently showed that it is fundamentally sound, according to Suhaimi.
“Our banks registered healthy profits and are well capitalised,” he added.
However, he expects non-performing loan (NPL) ratio to increase to 7% to 8% this year from 4% last year.
“This forecast figures are not bad, given the current situation, compared with over 20% NPL ratio registered during the 1997 economic crisis,” he said.
On a positive note, Suhaimi noted that electrical and electronic manufacturing companies in Penang had indicated that the plunge in orders since October last year appeared to have levelled off last month.
He also said Malaysia’s economy would likely recover from technical recession by the fourth quarter of this year, backed by the speedy implementation of the fiscal stimulus package introduced by the Government recently.
“I would expect the decline in the economy to be the worst in the first quarter of this year. In the second and third quarters, even if the economy were to contract, it would be at a smaller pace,” he said.
He also expected the overnight policy rate (OPR) to fall by another 50 basis points by April 30. The OPR is currently 2%.
Source: TheStar
KUALA LUMPUR: The ringgit is expected to strengthen to 3.50 against the US dollar by year-end from between 3.60 and 3.65 currently.
According to Maybank Investment Bank Bhd chief economist Suhaimi Ilias, the US dollar is expected to weaken as the US government would have to find means to finance its huge fiscal deficit this year.
“It is highly likely they would have to print money, which is what they have started to do.
“The increase in supply would weaken the US dollar,” he said on the sidelines of the Financial Planning Seminar organised by Permodalan Nasional Bhd yesterday.
Meanwhile, the local banking sector is expected to weather the crisis without incidence, as stress tests conducted recently showed that it is fundamentally sound, according to Suhaimi.
“Our banks registered healthy profits and are well capitalised,” he added.
However, he expects non-performing loan (NPL) ratio to increase to 7% to 8% this year from 4% last year.
“This forecast figures are not bad, given the current situation, compared with over 20% NPL ratio registered during the 1997 economic crisis,” he said.
On a positive note, Suhaimi noted that electrical and electronic manufacturing companies in Penang had indicated that the plunge in orders since October last year appeared to have levelled off last month.
He also said Malaysia’s economy would likely recover from technical recession by the fourth quarter of this year, backed by the speedy implementation of the fiscal stimulus package introduced by the Government recently.
“I would expect the decline in the economy to be the worst in the first quarter of this year. In the second and third quarters, even if the economy were to contract, it would be at a smaller pace,” he said.
He also expected the overnight policy rate (OPR) to fall by another 50 basis points by April 30. The OPR is currently 2%.
Source: TheStar
Malaysia Faces Risk Of Prolonged Slowdown
KUALA LUMPUR: Malaysia’s economy is not facing the risk of further downside in growth but rather the risk of a prolonged slowdown, said ANZ Banking Group Ltd chief economist for Asia Paul Gruenwald.
“We are not worrying about things getting worse, we worry about when the recovery will come,” he said, pointing out that the Malaysian economy would recover only after the economies of advanced nations had revived.
He expected the US and European economies to recover in late 2009 or early 2010.
Speaking after his talk on The Economic Outlook For Malaysia and The Asian Region In 2009 yesterday, Gruenwald projected the country’s gross domestic product (GDP) to grow by 1% and 2.5%-3% this year and in 2010 respectively.
He said this year’s slow growth would be supported by domestic consumption, as the manufacturing and export sectors would continue to be weak.
“However, we don’t expect a growth trend, which will be 4% to 5%, until the end of 2010 or early 2011,” he said.
On whether China’s economy would be able to save Asian countries, Gruenwald said even if China could restore its growth to 8%-9% this year, the benefit to the rest of the region was likely to be limited.
“Exports from the rest of Asia to China appear equal to those to the US. However, if you factor in China’s role in the processing trade, exports to China from the rest of the world look modest,” he said.
He added that China comprised half of Asia’s GDP and most of the country’s economic growth came from investment, domestic consumption and exports.
With the collapse of demand from the US and Europe, the only pillar left supporting Asia’s growth was consumption, he said.
Gruenwald said the US dollar would remain on an uptrend as the global economic crisis continued, but the momentum should slow down as uncertainty dissipated.
“We are going to see general Asian currencies weaken against the US dollar. When the crisis is resolved and recovery begins, we will see the US dollar start to depreciate.
“Until that time, (we expect) the peak of 3.8 for the ringgit in the third or fourth quarters of this year,” he added.
Source: TheStar
“We are not worrying about things getting worse, we worry about when the recovery will come,” he said, pointing out that the Malaysian economy would recover only after the economies of advanced nations had revived.
He expected the US and European economies to recover in late 2009 or early 2010.
Speaking after his talk on The Economic Outlook For Malaysia and The Asian Region In 2009 yesterday, Gruenwald projected the country’s gross domestic product (GDP) to grow by 1% and 2.5%-3% this year and in 2010 respectively.
He said this year’s slow growth would be supported by domestic consumption, as the manufacturing and export sectors would continue to be weak.
“However, we don’t expect a growth trend, which will be 4% to 5%, until the end of 2010 or early 2011,” he said.
On whether China’s economy would be able to save Asian countries, Gruenwald said even if China could restore its growth to 8%-9% this year, the benefit to the rest of the region was likely to be limited.
“Exports from the rest of Asia to China appear equal to those to the US. However, if you factor in China’s role in the processing trade, exports to China from the rest of the world look modest,” he said.
He added that China comprised half of Asia’s GDP and most of the country’s economic growth came from investment, domestic consumption and exports.
With the collapse of demand from the US and Europe, the only pillar left supporting Asia’s growth was consumption, he said.
Gruenwald said the US dollar would remain on an uptrend as the global economic crisis continued, but the momentum should slow down as uncertainty dissipated.
“We are going to see general Asian currencies weaken against the US dollar. When the crisis is resolved and recovery begins, we will see the US dollar start to depreciate.
“Until that time, (we expect) the peak of 3.8 for the ringgit in the third or fourth quarters of this year,” he added.
Source: TheStar
Market To Remain Weak
By Fintan Ng
KUALA LUMPUR: The local bourse will remain weak ahead with volatile trading.
In the region, the Bank of Japan’s Tankan business survey showed confidence among the country’s biggest manufacturers fell to minus 58 in the first three months to March compared to the previous quarter, which fell to minus 24.
In South Korea, the ministry of knowledge economy said today that the country’s exports fell for a fifth straight month in February on weak demand from the US and Japan while imports dropped 36%.
HwangDBS Vickers Research Sdn Bhd said in a report that investors would have to exercise judgement on whether what they see or hear “is for real or just a false event”.
OSK Research Sdn Bhd analyst Shin Kao Jack said the market would remain bearish in the near-term. “We’re still eyeing the 835-point level as the immediate support followed by the 800/801-point level,” he added.
Meanwhile OSK Research head Chris Eng said the market would remain volatile in April with early strength on the handover of the Prime Minister’s position giving way to uncertainty after the three by-elections and selling pressure ahead due to the new rights shares of Maybank and TM International.
At 9.15am, the KLCI was 0.48% higher at 876.77 while Singapore’s Straits Times Index was down 0.21% to 1,696.40.
Tokyo’s Nikkei 225 rose 1.76% to 8,252.02, Taipei’s Taiex Index gained 1.40% to 5,283.87 while Seoul’s Kospi Index added 1.11% to 1,219.65.
Meanwhile, at Bursa Malaysia, 61 counters were up, 25 were down and 53 others were traded unchanged. There were 29.05 million shares traded with a total value of RM24.81 million.
Among bank stocks, Maybank was 8 sen higher at RM3.94 while BCHB added 10 sen to RM6.95. Resorts was up 3 sen to RM2.17 and Genting added 6 sen to RM3.74.
Plantation stocks IOI Corp was up 4 sen to RM3.84, Sime was unchanged at RM5.70 and KL Kepong gained 10 sen to RM10.70.
TNB was up 5 sen to RM6.15 while Tanjong rose 30 sen to RM13.50.
Nymex crude oil was down US$1.25 to US$48.1 per barrel.
Spot Gold was US$1.83 higher at US$921.04 per ounce.
The ringgit was quoted at 3.649 to the US dollar.
KUALA LUMPUR: The local bourse will remain weak ahead with volatile trading.
In the region, the Bank of Japan’s Tankan business survey showed confidence among the country’s biggest manufacturers fell to minus 58 in the first three months to March compared to the previous quarter, which fell to minus 24.
In South Korea, the ministry of knowledge economy said today that the country’s exports fell for a fifth straight month in February on weak demand from the US and Japan while imports dropped 36%.
HwangDBS Vickers Research Sdn Bhd said in a report that investors would have to exercise judgement on whether what they see or hear “is for real or just a false event”.
OSK Research Sdn Bhd analyst Shin Kao Jack said the market would remain bearish in the near-term. “We’re still eyeing the 835-point level as the immediate support followed by the 800/801-point level,” he added.
Meanwhile OSK Research head Chris Eng said the market would remain volatile in April with early strength on the handover of the Prime Minister’s position giving way to uncertainty after the three by-elections and selling pressure ahead due to the new rights shares of Maybank and TM International.
At 9.15am, the KLCI was 0.48% higher at 876.77 while Singapore’s Straits Times Index was down 0.21% to 1,696.40.
Tokyo’s Nikkei 225 rose 1.76% to 8,252.02, Taipei’s Taiex Index gained 1.40% to 5,283.87 while Seoul’s Kospi Index added 1.11% to 1,219.65.
Meanwhile, at Bursa Malaysia, 61 counters were up, 25 were down and 53 others were traded unchanged. There were 29.05 million shares traded with a total value of RM24.81 million.
Among bank stocks, Maybank was 8 sen higher at RM3.94 while BCHB added 10 sen to RM6.95. Resorts was up 3 sen to RM2.17 and Genting added 6 sen to RM3.74.
Plantation stocks IOI Corp was up 4 sen to RM3.84, Sime was unchanged at RM5.70 and KL Kepong gained 10 sen to RM10.70.
TNB was up 5 sen to RM6.15 while Tanjong rose 30 sen to RM13.50.
Nymex crude oil was down US$1.25 to US$48.1 per barrel.
Spot Gold was US$1.83 higher at US$921.04 per ounce.
The ringgit was quoted at 3.649 to the US dollar.
Selangor Plans Legal Action If Water Tariff Raised
PETALING JAYA: The Selangor state government intends to seek legal action if the Cabinet today decides to increase the water tariff.
The state claimed that the necessary pre-requisites for a tariff increase by Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) under the concession agreement were unfulfilled.
“Material deficiencies were found in the last audit, the cumulative effect of which undermines the validity of the request by Syabas,” the state said in a press statement yesterday.
Complaints of Syabas’ “highly unsatisfactory” services were sent to the Ministry of Energy, Telecommunications and Water, together with a request that the concession agreement be terminated, it said.
However, the minister has yet to take action against Syabas and, instead, indicated that a licence would be issued to the concessionaire to continue its operation.
“This decision not only goes against the declared intention of the Federal Government to restructure water services in Malaysia but also the public interest,” it added.
It was reported that the ministry would propose to the Cabinet today on the tariff increase – as much as 31% for consumers in Selangor, Putrajaya and Kuala Lumpur.
Source: TheStar
-------------------------------------------------------------------------------------------------
The Water Tariff hike is definitely going to burden the people if allowed. The chain reaction is unavoidable since we use water daily.
The state claimed that the necessary pre-requisites for a tariff increase by Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) under the concession agreement were unfulfilled.
“Material deficiencies were found in the last audit, the cumulative effect of which undermines the validity of the request by Syabas,” the state said in a press statement yesterday.
Complaints of Syabas’ “highly unsatisfactory” services were sent to the Ministry of Energy, Telecommunications and Water, together with a request that the concession agreement be terminated, it said.
However, the minister has yet to take action against Syabas and, instead, indicated that a licence would be issued to the concessionaire to continue its operation.
“This decision not only goes against the declared intention of the Federal Government to restructure water services in Malaysia but also the public interest,” it added.
It was reported that the ministry would propose to the Cabinet today on the tariff increase – as much as 31% for consumers in Selangor, Putrajaya and Kuala Lumpur.
Source: TheStar
-------------------------------------------------------------------------------------------------
The Water Tariff hike is definitely going to burden the people if allowed. The chain reaction is unavoidable since we use water daily.
Cabinet To Decide Wed On Water Tariff Hike
By YEOW POOI LING
Minister will present Syabas proposal on hike to Cabinet
PETALING JAYA: The Cabinet will decide tomorrow whether the water distributor concessionaire in Selangor and Federal Territory of Kuala Lumpur can raise water tariff by as much as 31% on the same day as provided for in the concession agreements.
Energy, Water and Communications Minister Datuk Shaziman Abu Mansor said he would be presenting a proposal to the Cabinet on Syarikat Berkalan Air Sdn Bhd’s (Syabas) request for the tariff increase.
“The ministry has to present its opinion to the Cabinet on the proposed tariff hike and the quantum of increase that should be given to the concessionaire. The Cabinet will then decide,” Shaziman said after launching the France Asia Trade Forum yesterday.
This is despite the fact that the minister himself has the powers to either delay or give the nod for the tariff hike. Under section 114 of the Water Services Industry Act 2006 (WSIA2006), the minister is empowered to decide on water issues based on national interest.
Datuk Shaziman Abu Mansor showing the booklet
The original date for the increase in water rates was Jan 1 but this was postponed to April upon the state’s request pending negotiations over sale of water assets in Selangor to the Government under the national water restructuring exercise.
At the same function, the minister issued a booklet that stated the distribution of water for Selangor after the takeover of water assets by national water asset company Pengurusan Aset Air Bhd (PAAB) would remain status quo, with Syabas given a licensing from the regulator.
The other three water concessionaires – Puncak Niaga Sdn Bhd (PNSB), Syarikat Pengeluar Air Selangor Sdn Bhd (Splash) and Konsortium Abass Sdn Bhd – would be allowed to operate on authorisation basis.
The respective water operators for Malacca, Negri Sembilan and Johor also maintained their operations after PAAB took over their assets.
The Selangor government has till today to finalise the consolidation of the state’s water sector.
But it is unlikely to make any headway as the four concessionaries have not taken up its offer. Selangor had earlier offered RM4.6bil for the assets and RM1.1bil for the concessions.
PAAB is now in negotiations directly with the concessionaires in Selangor.
Shaziman said the federal government would not “force” the state to migrate to the new regime.
“If the state is unwilling, it would have to comply with the terms in the agreement signed between the federal, state and the concessionaires, which included the tariff increase,” he said.
Should the tariff increase be rejected by the state, it would have to bear the compensation cost as stipulated in the agreement, he added.
It was estimated that the compensation could amount to RM38mil a month.
Shaziman said the ministry was still open to work with the state to resolve the present issue.
“In fact, there is a proposal from the state on the matter and we have asked them to send a team to provide further details. If the proposal is beneficial to the people, we will accept it.
“So far, we have not received any response from the state,” he added.
Selangor Water Review Panel member Tony Pua told StarBiz that the state’s proposal remained similar with the past, which was to seek approval to lead the negotiation with the concessionaires pertaining to the water restructuring.
He said the potential tariff increase was questionable given that audit reports had revealed that Syabas failed to comply with several concession terms, including awarding contracts via open tender.
“Why keep the service provider when it has a poor track record in the last four years and broken some terms in the past?” Pua said.
Minister will present Syabas proposal on hike to Cabinet
PETALING JAYA: The Cabinet will decide tomorrow whether the water distributor concessionaire in Selangor and Federal Territory of Kuala Lumpur can raise water tariff by as much as 31% on the same day as provided for in the concession agreements.
Energy, Water and Communications Minister Datuk Shaziman Abu Mansor said he would be presenting a proposal to the Cabinet on Syarikat Berkalan Air Sdn Bhd’s (Syabas) request for the tariff increase.
“The ministry has to present its opinion to the Cabinet on the proposed tariff hike and the quantum of increase that should be given to the concessionaire. The Cabinet will then decide,” Shaziman said after launching the France Asia Trade Forum yesterday.
This is despite the fact that the minister himself has the powers to either delay or give the nod for the tariff hike. Under section 114 of the Water Services Industry Act 2006 (WSIA2006), the minister is empowered to decide on water issues based on national interest.
Datuk Shaziman Abu Mansor showing the booklet
The original date for the increase in water rates was Jan 1 but this was postponed to April upon the state’s request pending negotiations over sale of water assets in Selangor to the Government under the national water restructuring exercise.
At the same function, the minister issued a booklet that stated the distribution of water for Selangor after the takeover of water assets by national water asset company Pengurusan Aset Air Bhd (PAAB) would remain status quo, with Syabas given a licensing from the regulator.
The other three water concessionaires – Puncak Niaga Sdn Bhd (PNSB), Syarikat Pengeluar Air Selangor Sdn Bhd (Splash) and Konsortium Abass Sdn Bhd – would be allowed to operate on authorisation basis.
The respective water operators for Malacca, Negri Sembilan and Johor also maintained their operations after PAAB took over their assets.
The Selangor government has till today to finalise the consolidation of the state’s water sector.
But it is unlikely to make any headway as the four concessionaries have not taken up its offer. Selangor had earlier offered RM4.6bil for the assets and RM1.1bil for the concessions.
PAAB is now in negotiations directly with the concessionaires in Selangor.
Shaziman said the federal government would not “force” the state to migrate to the new regime.
“If the state is unwilling, it would have to comply with the terms in the agreement signed between the federal, state and the concessionaires, which included the tariff increase,” he said.
Should the tariff increase be rejected by the state, it would have to bear the compensation cost as stipulated in the agreement, he added.
It was estimated that the compensation could amount to RM38mil a month.
Shaziman said the ministry was still open to work with the state to resolve the present issue.
“In fact, there is a proposal from the state on the matter and we have asked them to send a team to provide further details. If the proposal is beneficial to the people, we will accept it.
“So far, we have not received any response from the state,” he added.
Selangor Water Review Panel member Tony Pua told StarBiz that the state’s proposal remained similar with the past, which was to seek approval to lead the negotiation with the concessionaires pertaining to the water restructuring.
He said the potential tariff increase was questionable given that audit reports had revealed that Syabas failed to comply with several concession terms, including awarding contracts via open tender.
“Why keep the service provider when it has a poor track record in the last four years and broken some terms in the past?” Pua said.
MCA: Govt Can Acquire PLUS Stock To Avoid Triennial Toll Hike
KUALA LUMPUR: The MCA has proposed that the Government acquire shares in PLUS Bhd in the interest of the people, said party spokesman Wong Nai Chee.
By acquiring shares in PLUS, Wong said the Government would be able to establish policies and measures to ensure that the people were not burdened.
“The once-every-three-years toll hike can be avoided and any increase would be based on operational needs rather than contractual needs,” he told a press conference at Wisma MCA here yesterday,
He said the toll rate was set at 14.96 sen per kilometre and by 2038 the rate was expected to increase to 29.16 sen per kilometre.
“Toll charges from Kuala Lumpur to Penang, which cost RM86 one way, will increase to RM168 by 2038,” he said, adding that the MCA Youth’s Legal Affairs and Parliamentary Research Bureau had embarked on a project to study all the highway agreements.
He said a team in the party led by vice-president Datuk Seri Liow Tiong Lai would have a dialogue with the Works Ministry on the issue soon.
From the financial aspect, Wong said PLUS had been generating a profit of RM400mil to RM600mil yearly from 2004 to 2007.
“The Government compensated PLUS RM295mil and 307mil in 2003 and 2004 respectively. And for the year 2007 and 2008, the Government paid RM680mil and RM730mil in compensation respectively,” he said.
Source: TheStar
By acquiring shares in PLUS, Wong said the Government would be able to establish policies and measures to ensure that the people were not burdened.
“The once-every-three-years toll hike can be avoided and any increase would be based on operational needs rather than contractual needs,” he told a press conference at Wisma MCA here yesterday,
He said the toll rate was set at 14.96 sen per kilometre and by 2038 the rate was expected to increase to 29.16 sen per kilometre.
“Toll charges from Kuala Lumpur to Penang, which cost RM86 one way, will increase to RM168 by 2038,” he said, adding that the MCA Youth’s Legal Affairs and Parliamentary Research Bureau had embarked on a project to study all the highway agreements.
He said a team in the party led by vice-president Datuk Seri Liow Tiong Lai would have a dialogue with the Works Ministry on the issue soon.
From the financial aspect, Wong said PLUS had been generating a profit of RM400mil to RM600mil yearly from 2004 to 2007.
“The Government compensated PLUS RM295mil and 307mil in 2003 and 2004 respectively. And for the year 2007 and 2008, the Government paid RM680mil and RM730mil in compensation respectively,” he said.
Source: TheStar
Call On The Works And Finance Ministers For A Toll-Free North-South Expressway By 2016 And Save Taxpayers RM14 Billion
Media Statement by DAP Ops RESTORE Team in Kuala Lumpur on Wednesday, 25th February 2009
The DAP Ops RESTORE (Restructure Toll Rates & Equity) Team would like to congratulate the Works Minister for first having declassified most of the highway toll concession agreements, and followed up with the removal of two toll plazas at the New Pantai Expressway (NPE) and the Sungei Besi Highway in the past two weeks.
We call upon the Works Minister to declare the compensation promised to these concessionaires for the abolition of the toll, for if the compensation involved is equivalent to the toll that would have been collected, then the joy for Malaysians will be short-lived.
In addition and more importantly, DAP Ops RESTORE Team calls upon both the Works and Finance Ministers to make the entire North-South Highway and its related concessions such as the ELITE, Butterworth-Kulim (BKE) and the Second Link Highways under PLUS Expressways Bhd completely toll free by 2016.
Following our team's consultations to date with our legal experts, investment bankers as well as the general public, we have developed a comprehensive, practicable and creative programme to return the highways to the people in the least possible cost, and shortest possible time without compromising the integrity of the financial markets.
Our proposal will:
- Impose no further increase in North-South Highway toll rates
- For example, a return KL-Penang journey will remain at RM86.60 today instead of RM115.30 in 2015 and RM168.80 by 2030.
- Create RM14 billion savings for Malaysians from 2009-2015
This will be the amount saved either (i) by Malaysians using the highway because of no further toll rate increases or (ii) in terms of compensation which would have to be paid by the Government to PLUS Expressways.
1. Continue to collect toll only until 2015
2. Incur no additional cost for the Malaysian Government or Malaysian tax-payers
Background information:
- PLUS is listed on Bursa Malaysia at a price of RM2.88 per share and a market capitalisation of RM14.4 billion (24th February)
- The Government of Malaysia, via Khazanah owns 65% of PLUS.
- PLUS has outstanding net debt amounting to RM8.5 billion
We call upon the Government to take the following actions:
1. The Government should make a General Offer (GO) to acquire all minority shareholders of PLUS with a generous 15% premium at RM3.30 per share, costing RM5.25 billion thus ensuring that minority shareholders are protected.
2. The cost of acquisition added to the RM8.5 billion net debt of PLUS will amount to RM13.75 billion.
3. This cost will be funded by issuing Malaysian Government Securities (MGS) at 3% interest (or less), costing RM413 million per annum. Total repayment will amount to RM16.2 billion over 6 years.
4. At the same time, PLUS should generate at least RM20b in net positive cash flow the 6 years to 2015 without further toll rate hikes and a conservative 3% pa traffic growth.
5. Therefore by 2015, the government can completely repay the MGS and still have RM3.8 billion excess which could be used to build a better public transportation system throughout the country.
Not only will the execution of the above proposal bring joy to all Malaysians with a toll-free North South Expressway, the exercise will fit perfectly with the upcoming “mini-Budget” by the Finance Minister:
- RM14 billion saved by Malaysian consumers will reduce the cost of living for the average Malaysian in times of economic difficulties we face today.
- RM14 billion saved will also redirect expenditure to other more productive sectors of our economy by increasing domestic consumer demand.
- The reduced toll rates and its subsequent abolition will substantially reduce the cost of doing business in Malaysia, increase logistical efficiencies and ultimately make Malaysian companies more globally competitive.
- Best of all, the plan will stimulate demand and make available substantial funds for public infrastructure development without the Government having to increase the precarious budget deficit further.
Hence, the DAP Ops RESTORE Team would like to reiterate our call to both the Finance and Works Minister to include the above proposal in the proposed mini-budget set to be announced by the Finance Minister on the 10th March for the benefit of the Government and all Malaysians.
The DAP Ops RESTORE (Restructure Toll Rates & Equity) Team would like to congratulate the Works Minister for first having declassified most of the highway toll concession agreements, and followed up with the removal of two toll plazas at the New Pantai Expressway (NPE) and the Sungei Besi Highway in the past two weeks.
We call upon the Works Minister to declare the compensation promised to these concessionaires for the abolition of the toll, for if the compensation involved is equivalent to the toll that would have been collected, then the joy for Malaysians will be short-lived.
In addition and more importantly, DAP Ops RESTORE Team calls upon both the Works and Finance Ministers to make the entire North-South Highway and its related concessions such as the ELITE, Butterworth-Kulim (BKE) and the Second Link Highways under PLUS Expressways Bhd completely toll free by 2016.
Following our team's consultations to date with our legal experts, investment bankers as well as the general public, we have developed a comprehensive, practicable and creative programme to return the highways to the people in the least possible cost, and shortest possible time without compromising the integrity of the financial markets.
Our proposal will:
- Impose no further increase in North-South Highway toll rates
- For example, a return KL-Penang journey will remain at RM86.60 today instead of RM115.30 in 2015 and RM168.80 by 2030.
- Create RM14 billion savings for Malaysians from 2009-2015
This will be the amount saved either (i) by Malaysians using the highway because of no further toll rate increases or (ii) in terms of compensation which would have to be paid by the Government to PLUS Expressways.
1. Continue to collect toll only until 2015
2. Incur no additional cost for the Malaysian Government or Malaysian tax-payers
Background information:
- PLUS is listed on Bursa Malaysia at a price of RM2.88 per share and a market capitalisation of RM14.4 billion (24th February)
- The Government of Malaysia, via Khazanah owns 65% of PLUS.
- PLUS has outstanding net debt amounting to RM8.5 billion
We call upon the Government to take the following actions:
1. The Government should make a General Offer (GO) to acquire all minority shareholders of PLUS with a generous 15% premium at RM3.30 per share, costing RM5.25 billion thus ensuring that minority shareholders are protected.
2. The cost of acquisition added to the RM8.5 billion net debt of PLUS will amount to RM13.75 billion.
3. This cost will be funded by issuing Malaysian Government Securities (MGS) at 3% interest (or less), costing RM413 million per annum. Total repayment will amount to RM16.2 billion over 6 years.
4. At the same time, PLUS should generate at least RM20b in net positive cash flow the 6 years to 2015 without further toll rate hikes and a conservative 3% pa traffic growth.
5. Therefore by 2015, the government can completely repay the MGS and still have RM3.8 billion excess which could be used to build a better public transportation system throughout the country.
Not only will the execution of the above proposal bring joy to all Malaysians with a toll-free North South Expressway, the exercise will fit perfectly with the upcoming “mini-Budget” by the Finance Minister:
- RM14 billion saved by Malaysian consumers will reduce the cost of living for the average Malaysian in times of economic difficulties we face today.
- RM14 billion saved will also redirect expenditure to other more productive sectors of our economy by increasing domestic consumer demand.
- The reduced toll rates and its subsequent abolition will substantially reduce the cost of doing business in Malaysia, increase logistical efficiencies and ultimately make Malaysian companies more globally competitive.
- Best of all, the plan will stimulate demand and make available substantial funds for public infrastructure development without the Government having to increase the precarious budget deficit further.
Hence, the DAP Ops RESTORE Team would like to reiterate our call to both the Finance and Works Minister to include the above proposal in the proposed mini-budget set to be announced by the Finance Minister on the 10th March for the benefit of the Government and all Malaysians.
Malaysia's Next PM Mends Fences With Minorities
Malaysia's incoming premier Najib Razak Tuesday hailed the ethnic Chinese community's contribution to the nation, in a bid to mend ties with minorities who deserted the coalition in 2008 elections.
The comments from Najib, who is expected to be sworn into power later this week, came after an angry debate over the role of minorities in the multiracial country's independence struggle.
"I would like to thank the Chinese community for their many contributions to our nation's development," Najib told editors of a local Chinese paper, according to a statement from his office.
"The Malaysian Chinese community has, is now, and will forever play a vital role in the fabric of our nation," he added.
Najib last week became president of the ruling United Malay National Organisation (UMNO) which represents majority Muslim Malays who make up 60 percent of the population and dominate the government.
UMNO leads a coalition of race-based parties that also represent the ethnic Chinese and Indian communities, but they were hammered in elections a year ago as minorities shifted towards the opposition.
The opposition benefited from a rising sense of "Islamisation" of Malaysia, and fears that minorities' rights are being eroded.
Najib pledged to "develop a government that respects the voices of all Malaysians" and said the government "recognises and respects the contributions of all people in building Malaysia."
His comments came after a senior leader said at last week's UMNO assembly that independence and later developments were forged by "UMNO and our Malay rulers and no one else."
The Malaysian Chinese Association (MCA), a key member of the coalition, urged a stop to "rewriting the facts of history or denying the efforts of other races in helping to fight for the country's independence."
Malaysia gained its independence from Britain in 1957 under the leadership of UMNO, MCA and the Malaysian Indian Congress, which later along with several other parties, came to form the present ruling coalition. - AFP
The comments from Najib, who is expected to be sworn into power later this week, came after an angry debate over the role of minorities in the multiracial country's independence struggle.
"I would like to thank the Chinese community for their many contributions to our nation's development," Najib told editors of a local Chinese paper, according to a statement from his office.
"The Malaysian Chinese community has, is now, and will forever play a vital role in the fabric of our nation," he added.
Najib last week became president of the ruling United Malay National Organisation (UMNO) which represents majority Muslim Malays who make up 60 percent of the population and dominate the government.
UMNO leads a coalition of race-based parties that also represent the ethnic Chinese and Indian communities, but they were hammered in elections a year ago as minorities shifted towards the opposition.
The opposition benefited from a rising sense of "Islamisation" of Malaysia, and fears that minorities' rights are being eroded.
Najib pledged to "develop a government that respects the voices of all Malaysians" and said the government "recognises and respects the contributions of all people in building Malaysia."
His comments came after a senior leader said at last week's UMNO assembly that independence and later developments were forged by "UMNO and our Malay rulers and no one else."
The Malaysian Chinese Association (MCA), a key member of the coalition, urged a stop to "rewriting the facts of history or denying the efforts of other races in helping to fight for the country's independence."
Malaysia gained its independence from Britain in 1957 under the leadership of UMNO, MCA and the Malaysian Indian Congress, which later along with several other parties, came to form the present ruling coalition. - AFP
Tuesday, March 31, 2009
Oil Tumbles Below US$49 On Gloomy Economic Outlook
HOUSTON: Oil prices tumbled below $49 a barrel Monday as unease about the economy - from Asia to America - raised doubts about the global appetite for energy.
Benchmark crude for May delivery fell more than 7.6 percent, or $3.97, to settle at $48.41 on the New York Mercantile Exchange.
In London, Brent prices fell $3.19 to settle at $47.99 a barrel on the ICE Futures exchange.
Gasoline futures plunged more than 10 cents a gallon.
Jim Ritterbusch, president of energy consulting group Ritterbusch and Associates, said he expects oil to fall as low as $47 in advance of the U.S. crude inventory report, the monthly unemployment report and a meeting of the Group of 20 world leaders in London, all this week.
"Late in the week, all hell could break loose, but I don't know whether it makes the market go up or down," Ritterbusch said.
Most energy-market analysts found no fundamental reason for a rally this month that pushed oil prices from $40 per barrel to more than $50.
Crude inventories continue to build even with OPEC cutting production and domestic producers suspending oil projects.
Oil prices have moved higher as a spate of positive economic news heartened investors.
Just last week, markets rallied behind word of a new plan to resolve the nation's banking crisis and a report that consumer spending rose in February for a second straight month.
"None of these burned a single hydrocarbon or pulled a single gallon (of gasoline) from storage," the energy consultancy Cameron Hanover said in a note to clients Monday.
"By Friday, it was just too much macroeconomic news and not enough oil fundamental news that had pushed prices higher."
Traders began to sell positions on the final day of the week.
U.S. stock markets got off to a rocky start Monday after the White House rejected turnaround plans from General Motors Corp. and Chrysler.
The Dow Jones industrial average fell 300 points in late afternoon trading.
Losses by major corporations, from banking to the industrial sector, have boosted the amount of oil held in storage and weighed on prices.
The U.S. government last week said crude storage facilities were brimming with more oil than they've had in 16 years.
Combined with the strategic petroleum reserve, the nation now has 1.05 billion barrels of oil in storage - enough to fuel roughly 44 million cars for a year.
"You can't swing a cat without hitting a barrel of crude oil in the United States," analyst Stephen Schork said in his daily markets report Monday.
Crude is piling up as airlines, manufacturers, automakers and just about every other sector slow down and millions of workers lose their jobs. U.S. stores of natural gas also rose by 3 billion cubic feet to about 1.65 trillion cubic feet for the week ended March 20.
Natural gas prices have fallen to levels last seen nearly seven years ago as industries cut costs and slow factory production.
The Organization of Petroleum Exporting Countries has promised to slash production by 4.2 million barrels per day, but analysts are at odds about the level of compliance by OPEC members.
JBC Energy in Vienna cited data from tanker-tracking agency Petrologistics showing that March crude oil production from 11 OPEC nations would total 25.9 million barrels a day, more than 1 million barrels higher than the group's implied output ceiling of 24.845 million barrels a day.
Comments Monday by Qatar's oil minister suggested OPEC members may be facing a new reality because of a widespread recession.
Abdullah bin Hamad al-Attiyah said he was "OK" with crude prices around $50 a barrel for 2009 and was "trying to be more pragmatic" regarding the global crisis and its effects on oil prices.
Just two weeks ago as OPEC ministers gathered in Vienna, Austria, there was still talk of $70 oil.
In other Nymex trading, gasoline for April delivery tumbled 10.8 cents to settle at $1.3799 a gallon while heating oil slipped 9.02 cents to settle at $1.3426 a gallon.
Natural gas for May delivery rose less than a penny to settle at $3.739 per 1,000 cubic feet. - AP
Benchmark crude for May delivery fell more than 7.6 percent, or $3.97, to settle at $48.41 on the New York Mercantile Exchange.
In London, Brent prices fell $3.19 to settle at $47.99 a barrel on the ICE Futures exchange.
Gasoline futures plunged more than 10 cents a gallon.
Jim Ritterbusch, president of energy consulting group Ritterbusch and Associates, said he expects oil to fall as low as $47 in advance of the U.S. crude inventory report, the monthly unemployment report and a meeting of the Group of 20 world leaders in London, all this week.
"Late in the week, all hell could break loose, but I don't know whether it makes the market go up or down," Ritterbusch said.
Most energy-market analysts found no fundamental reason for a rally this month that pushed oil prices from $40 per barrel to more than $50.
Crude inventories continue to build even with OPEC cutting production and domestic producers suspending oil projects.
Oil prices have moved higher as a spate of positive economic news heartened investors.
Just last week, markets rallied behind word of a new plan to resolve the nation's banking crisis and a report that consumer spending rose in February for a second straight month.
"None of these burned a single hydrocarbon or pulled a single gallon (of gasoline) from storage," the energy consultancy Cameron Hanover said in a note to clients Monday.
"By Friday, it was just too much macroeconomic news and not enough oil fundamental news that had pushed prices higher."
Traders began to sell positions on the final day of the week.
U.S. stock markets got off to a rocky start Monday after the White House rejected turnaround plans from General Motors Corp. and Chrysler.
The Dow Jones industrial average fell 300 points in late afternoon trading.
Losses by major corporations, from banking to the industrial sector, have boosted the amount of oil held in storage and weighed on prices.
The U.S. government last week said crude storage facilities were brimming with more oil than they've had in 16 years.
Combined with the strategic petroleum reserve, the nation now has 1.05 billion barrels of oil in storage - enough to fuel roughly 44 million cars for a year.
"You can't swing a cat without hitting a barrel of crude oil in the United States," analyst Stephen Schork said in his daily markets report Monday.
Crude is piling up as airlines, manufacturers, automakers and just about every other sector slow down and millions of workers lose their jobs. U.S. stores of natural gas also rose by 3 billion cubic feet to about 1.65 trillion cubic feet for the week ended March 20.
Natural gas prices have fallen to levels last seen nearly seven years ago as industries cut costs and slow factory production.
The Organization of Petroleum Exporting Countries has promised to slash production by 4.2 million barrels per day, but analysts are at odds about the level of compliance by OPEC members.
JBC Energy in Vienna cited data from tanker-tracking agency Petrologistics showing that March crude oil production from 11 OPEC nations would total 25.9 million barrels a day, more than 1 million barrels higher than the group's implied output ceiling of 24.845 million barrels a day.
Comments Monday by Qatar's oil minister suggested OPEC members may be facing a new reality because of a widespread recession.
Abdullah bin Hamad al-Attiyah said he was "OK" with crude prices around $50 a barrel for 2009 and was "trying to be more pragmatic" regarding the global crisis and its effects on oil prices.
Just two weeks ago as OPEC ministers gathered in Vienna, Austria, there was still talk of $70 oil.
In other Nymex trading, gasoline for April delivery tumbled 10.8 cents to settle at $1.3799 a gallon while heating oil slipped 9.02 cents to settle at $1.3426 a gallon.
Natural gas for May delivery rose less than a penny to settle at $3.739 per 1,000 cubic feet. - AP
Earth Hour: TNB Records 550MW Drop
KUALA LUMPUR: Although the Earth Hour campaign last Saturday resulted in electricity consumption dipping by 550 megawatt but Tenaga Nasional Berhad (TNB) is not complaining.
Rather, TNB accepted that the hour-long campaign, which began at 8.30pm, was for a good cause.
The 550 megawatt is equivalent to 14 million fluorescent bulbs of 40 watt each.
"While this minor fall in demand will result in a slight shaving of our revenue, we accept that Earth Hour is for a good cause," said TNB president/chief executive officer Datuk Seri Che Khalib Mohamad Noh in a statement here Monday.
He said, during the one-hour period of the energy conservation initiative, TNB staff were extra vigilant, in the event of untoward operational snags.
"Everything went on very smoothly and we were able to respond to the slightly lower demand, without any operational glitch.
"Demand peaked almost rapidly at 9.30pm, to follow the normal Saturday evening demand pattern," added Che Khalib.
He said TNB was surprised by the support and appreciation demonstrated by many of its customers on the worldwide Earth Hour campaign. - Bernama
Rather, TNB accepted that the hour-long campaign, which began at 8.30pm, was for a good cause.
The 550 megawatt is equivalent to 14 million fluorescent bulbs of 40 watt each.
"While this minor fall in demand will result in a slight shaving of our revenue, we accept that Earth Hour is for a good cause," said TNB president/chief executive officer Datuk Seri Che Khalib Mohamad Noh in a statement here Monday.
He said, during the one-hour period of the energy conservation initiative, TNB staff were extra vigilant, in the event of untoward operational snags.
"Everything went on very smoothly and we were able to respond to the slightly lower demand, without any operational glitch.
"Demand peaked almost rapidly at 9.30pm, to follow the normal Saturday evening demand pattern," added Che Khalib.
He said TNB was surprised by the support and appreciation demonstrated by many of its customers on the worldwide Earth Hour campaign. - Bernama
In Support Of Earth Hour
MALAYSIANS joined in the call to take action on climate change when they turned their lights off for an hour to celebrate Earth Hour on Saturday.
The KL Tower welcomed 80 guests atop its Open Deck to witness the significant event. The guests from government agencies, corporations and the media watched the Petronas Twin Towers and other buildings in KL, Petaling Jaya and even Genting Highlands switch off their non-essential lights.
Beautiful: It was a party-like athmosphere at CapSquare where participants were entertained with games and performances by local celebrities
The event began at 8pm as Malaysian celebrity Lina Teoh welcomed guests and later headed the countdown when four KL Tower base jumpers performed their feat for the launch of Earth Hour.
For an entire hour, guests enjoyed their meal amid darkness while listening to live Malay traditional music provided by the KL Tower.
The Federal Territories Ministry secretary-general Datuk Ahmad Phesal Talib said this year was the just the beginning for more events in the future.
“More than 50 government buildings from KL have joined in the Earth Hour and even the Cabinet agrees that it is an important event for the earth’s conservation,” Ahmad Phesal said.
Doing my bit: A supporter signing his pledge to conserve the environment at Sunway Pyramid.
For World Wide Fund For Nature (WWF)’s chief operating officer Datuk Dr Dionysius Sharma, the journey for Earth Hour was made a little easier by the co-operation from all spheres.
“When we started, we wanted three main organisations to join in — the government, corporations and the public. They have all proved to be very helpful,” Sharma said.
“Few people were sceptical about the event, asking how much energy we can conserve but it is more than that. It is the awareness that people have about the climate change,” he added.
McNeil: ‘We must try not to indulge too much and live on appropriate portions.’
To pledge your support or find out details on how to save energy, log on to www.earthhour.org/malaysia.
At CapSquare in Kuala Lumpur, some 2,000 participants from all ages joined in the fun by signing up in the Walk of Hope minutes before the countdown began.
Dressed in similar black T-shirts and armed with a candlelight each, the participants walked along the 500m route accompanied by a marching band together with the Charm All-Stars Cheerleaders.
“The Walk of Hope idea was initiated to gather as many people as possible to send a message and make a stand against global warming and preserving the Earth for generations to come,” said BRDB senior manager Wayne Wong.
Wong added that tickets sales from the walk would be donated to WWF-Malaysia in its efforts against global warming.
At 8.30pm, the crowd cheered and partied in the dark as they were entertained with a host of low-powered shows which included an 18-prosperity drums ensemble, a fire-eating show, rhythm tap dancing as well as singing performances by various local artistes and ambassadors.
Besides that, an all-day Eco Bazaar was held selling clothes, accessories together with environment-friendly groups like the Malaysian Nature Society, Wild Asia, WWF and Rakan Muda-Eco Wing.
At the Starhill Gallery in Kuala Lumpur, YTL Corporation Berhad held an Earth Hour celebration at Shook! The event started with the countdown by the Tree Theatre Group followed by a story-telling session by Datuk Dr Sheikh Muszaphar Shukor and performances by Sean Ghazi, Deanna Yusoff, Jes Ebrahim and Wayang Lampu by Five Arts Centre.
A welcoming address was given by YTL Corporation director of investments Ruth Yeoh, who was very passionate about the effort.
“In taking the logical step to not only be a part of the Earth Hour and celebrating it as well, we have looked how technology has made our lives more comfortable.
At the event, the YTL Green Ribbon Award prize was presented to SM Sains Kuala Selangor, SM Assunta and SM Damansara Damai, who received RM3,000, RM2,000 and RM1,000 respectively.
At the Westin Hotel KL, StarMetro spoke to guest Susannah McNeil, 41, from Australia.
McNeil said education was an important way to teach people about the environment.
“It is nice to see even Westin getting behind this effort. We must try not to indulge too much and live on appropriate portions, which is just one of the ways we can help save the environment,” she said.
The hotel switched off its exterior signage lighting; dimmed non-essential interior lighting and used candlelight in public areas such as restaurants and bars to create the illuminating atmosphere.
At Mont’Kiara, children and adults alike waved their glow sticks and torchlights in sync with the Yayasan Anak Warisan Alam’s (Yawa) Eco Drum Circle performance, which artfully used recyclable objects like bins and bottles to create rhythmic beats.
The show was featured as part of the Earth Hour celebration at the Sunrise Fun Zone Community Centre.
Students from Global Issues Network at Mont’Kiara International School put up a simple play using glow sticks to form a globe and other props to demonstrate the effects of global warming and ways to save the planet, and gave an a-capella rendition of Joni Mitchel’s Big Yellow Taxi.
Other performances included a Taiko Drums ensemble comprising residents and Sunrise employees, and visitors singing in unison to Michael Jackson’s Earth Song.
Before the actual “lights off” hour, visitors took the opportunity to visit the several interactive eco booths where they learnt how to make natural potpourri and ‘exotic salad’ (rojak).
Supporting partners like Yawa distributed little plants for people to take home as part of its adopt-a-tree programme, while Justlife Group Sdn Bhd educated visitors about the benefits and process of making garbage enzyme.
The children took part in fun activities like painting eco bags and T-shirts, making edible dough flowers and getting a hands-on approach in gardening.
Insurance agent S. Hariharan brought his three children along to educate them about the environment.
“They already separate their garbage at home and witnessed first-hand what happens at the recycling centre. My son, Sri Ram, is very excited about the plant he got from Yawa and looks forward to seeing it grow,” said the Mont’Kiara resident.
Furniture outlet IKEA joined in the support for the event by turning off all non-essential lights in the IKEA Restaurant.
The lights on the facade of the store in Mutiara Damansara, Petaling Jaya, were also turned off.
IKEA Malaysia general manger Joseph Lau hoped that their actions would inspire people to take practical actions to support the initiative and reduce their own carbon footprints.
MixFM announcer Serena C and the Roadrunners crew were at hand to entertain customers and play games an hour before the lights went out.
At 8.30pm, IKEA managers and employees walked around the restaurant to place lamps on the tables so that diners could enjoy their dinner by candlelight.
The KL Stompers put up a live percussion performance with IKEA products.
To further spread the message, there were special offers on energy-saving bulbs and products.
Social and environment manager Ben Chong said the company used these bulbs where possible and had installed extra insulation to save energy on cooling.
“Here, we have water tanks installed in the building to accumulate rainwater for the sewage system, general cleaning and to flush the toilets.
“Our toilets are equipped with motion censors to save electricity when no one is using it,” he said.
He said so far, they had saved up to 13% on energy consumption compared with 2007.
At Sunway Pyramid, more than 500 people took part in the event. For the first time, Sunway Pyramid’s iconic lion head, Egyptian-style facade and street lighting were turned off.
Sunway resort Hotel and Spa turned off non-essential lights while the Sunway Lagoon Theme Park switched off lights at the pedestrian, palm trees, volcano and Wild Wild West. Sunway Medical Centre also turned off their facade lighting.
WWF Malaysia conservation director Dr Arun Venkataraman was proud that Malaysians were doing their part to support Earth Hour.
“Such concerted efforts to address climate change are urgent and crucial. According to climate modelling, may countries including Malaysia will experience significant future rainfall changes.
“(Therefore,) A Malaysian commitment to mitigate climate change will not only contribute towards reducing the global impact, but also help to ensure water and climate security for many future generations of Malaysians,” he said.
Subang Jaya assemblyman Hannah Yeoh, who officiated at the launch said: “Some may question the effectiveness of Earth Hour. The idea of turning off electricity for just an hour once a year seems silly, but what they don’t realise is the meaning behind the action. Our celebration today goes beyond turning off lights; it’s about our realisation of the current state of the environment,” she said.
Sunway University College students, led by Sunway Idol Benjamin Lin, sung Michael Jackson’s Heal The World. There was also an Earth Hour Poem recited by 14-year-old student Aina Nabilah, a Storm performance and song performances from the SMK Bandar Sunway special students.
The KL Tower welcomed 80 guests atop its Open Deck to witness the significant event. The guests from government agencies, corporations and the media watched the Petronas Twin Towers and other buildings in KL, Petaling Jaya and even Genting Highlands switch off their non-essential lights.
Beautiful: It was a party-like athmosphere at CapSquare where participants were entertained with games and performances by local celebrities
The event began at 8pm as Malaysian celebrity Lina Teoh welcomed guests and later headed the countdown when four KL Tower base jumpers performed their feat for the launch of Earth Hour.
For an entire hour, guests enjoyed their meal amid darkness while listening to live Malay traditional music provided by the KL Tower.
The Federal Territories Ministry secretary-general Datuk Ahmad Phesal Talib said this year was the just the beginning for more events in the future.
“More than 50 government buildings from KL have joined in the Earth Hour and even the Cabinet agrees that it is an important event for the earth’s conservation,” Ahmad Phesal said.
Doing my bit: A supporter signing his pledge to conserve the environment at Sunway Pyramid.
For World Wide Fund For Nature (WWF)’s chief operating officer Datuk Dr Dionysius Sharma, the journey for Earth Hour was made a little easier by the co-operation from all spheres.
“When we started, we wanted three main organisations to join in — the government, corporations and the public. They have all proved to be very helpful,” Sharma said.
“Few people were sceptical about the event, asking how much energy we can conserve but it is more than that. It is the awareness that people have about the climate change,” he added.
McNeil: ‘We must try not to indulge too much and live on appropriate portions.’
To pledge your support or find out details on how to save energy, log on to www.earthhour.org/malaysia.
At CapSquare in Kuala Lumpur, some 2,000 participants from all ages joined in the fun by signing up in the Walk of Hope minutes before the countdown began.
Dressed in similar black T-shirts and armed with a candlelight each, the participants walked along the 500m route accompanied by a marching band together with the Charm All-Stars Cheerleaders.
“The Walk of Hope idea was initiated to gather as many people as possible to send a message and make a stand against global warming and preserving the Earth for generations to come,” said BRDB senior manager Wayne Wong.
Wong added that tickets sales from the walk would be donated to WWF-Malaysia in its efforts against global warming.
At 8.30pm, the crowd cheered and partied in the dark as they were entertained with a host of low-powered shows which included an 18-prosperity drums ensemble, a fire-eating show, rhythm tap dancing as well as singing performances by various local artistes and ambassadors.
Besides that, an all-day Eco Bazaar was held selling clothes, accessories together with environment-friendly groups like the Malaysian Nature Society, Wild Asia, WWF and Rakan Muda-Eco Wing.
At the Starhill Gallery in Kuala Lumpur, YTL Corporation Berhad held an Earth Hour celebration at Shook! The event started with the countdown by the Tree Theatre Group followed by a story-telling session by Datuk Dr Sheikh Muszaphar Shukor and performances by Sean Ghazi, Deanna Yusoff, Jes Ebrahim and Wayang Lampu by Five Arts Centre.
A welcoming address was given by YTL Corporation director of investments Ruth Yeoh, who was very passionate about the effort.
“In taking the logical step to not only be a part of the Earth Hour and celebrating it as well, we have looked how technology has made our lives more comfortable.
At the event, the YTL Green Ribbon Award prize was presented to SM Sains Kuala Selangor, SM Assunta and SM Damansara Damai, who received RM3,000, RM2,000 and RM1,000 respectively.
At the Westin Hotel KL, StarMetro spoke to guest Susannah McNeil, 41, from Australia.
McNeil said education was an important way to teach people about the environment.
“It is nice to see even Westin getting behind this effort. We must try not to indulge too much and live on appropriate portions, which is just one of the ways we can help save the environment,” she said.
The hotel switched off its exterior signage lighting; dimmed non-essential interior lighting and used candlelight in public areas such as restaurants and bars to create the illuminating atmosphere.
At Mont’Kiara, children and adults alike waved their glow sticks and torchlights in sync with the Yayasan Anak Warisan Alam’s (Yawa) Eco Drum Circle performance, which artfully used recyclable objects like bins and bottles to create rhythmic beats.
The show was featured as part of the Earth Hour celebration at the Sunrise Fun Zone Community Centre.
Students from Global Issues Network at Mont’Kiara International School put up a simple play using glow sticks to form a globe and other props to demonstrate the effects of global warming and ways to save the planet, and gave an a-capella rendition of Joni Mitchel’s Big Yellow Taxi.
Other performances included a Taiko Drums ensemble comprising residents and Sunrise employees, and visitors singing in unison to Michael Jackson’s Earth Song.
Before the actual “lights off” hour, visitors took the opportunity to visit the several interactive eco booths where they learnt how to make natural potpourri and ‘exotic salad’ (rojak).
Supporting partners like Yawa distributed little plants for people to take home as part of its adopt-a-tree programme, while Justlife Group Sdn Bhd educated visitors about the benefits and process of making garbage enzyme.
The children took part in fun activities like painting eco bags and T-shirts, making edible dough flowers and getting a hands-on approach in gardening.
Insurance agent S. Hariharan brought his three children along to educate them about the environment.
“They already separate their garbage at home and witnessed first-hand what happens at the recycling centre. My son, Sri Ram, is very excited about the plant he got from Yawa and looks forward to seeing it grow,” said the Mont’Kiara resident.
Furniture outlet IKEA joined in the support for the event by turning off all non-essential lights in the IKEA Restaurant.
The lights on the facade of the store in Mutiara Damansara, Petaling Jaya, were also turned off.
IKEA Malaysia general manger Joseph Lau hoped that their actions would inspire people to take practical actions to support the initiative and reduce their own carbon footprints.
MixFM announcer Serena C and the Roadrunners crew were at hand to entertain customers and play games an hour before the lights went out.
At 8.30pm, IKEA managers and employees walked around the restaurant to place lamps on the tables so that diners could enjoy their dinner by candlelight.
The KL Stompers put up a live percussion performance with IKEA products.
To further spread the message, there were special offers on energy-saving bulbs and products.
Social and environment manager Ben Chong said the company used these bulbs where possible and had installed extra insulation to save energy on cooling.
“Here, we have water tanks installed in the building to accumulate rainwater for the sewage system, general cleaning and to flush the toilets.
“Our toilets are equipped with motion censors to save electricity when no one is using it,” he said.
He said so far, they had saved up to 13% on energy consumption compared with 2007.
At Sunway Pyramid, more than 500 people took part in the event. For the first time, Sunway Pyramid’s iconic lion head, Egyptian-style facade and street lighting were turned off.
Sunway resort Hotel and Spa turned off non-essential lights while the Sunway Lagoon Theme Park switched off lights at the pedestrian, palm trees, volcano and Wild Wild West. Sunway Medical Centre also turned off their facade lighting.
WWF Malaysia conservation director Dr Arun Venkataraman was proud that Malaysians were doing their part to support Earth Hour.
“Such concerted efforts to address climate change are urgent and crucial. According to climate modelling, may countries including Malaysia will experience significant future rainfall changes.
“(Therefore,) A Malaysian commitment to mitigate climate change will not only contribute towards reducing the global impact, but also help to ensure water and climate security for many future generations of Malaysians,” he said.
Subang Jaya assemblyman Hannah Yeoh, who officiated at the launch said: “Some may question the effectiveness of Earth Hour. The idea of turning off electricity for just an hour once a year seems silly, but what they don’t realise is the meaning behind the action. Our celebration today goes beyond turning off lights; it’s about our realisation of the current state of the environment,” she said.
Sunway University College students, led by Sunway Idol Benjamin Lin, sung Michael Jackson’s Heal The World. There was also an Earth Hour Poem recited by 14-year-old student Aina Nabilah, a Storm performance and song performances from the SMK Bandar Sunway special students.
PM: Malays Started Fight For Independence
KUALA LUMPUR: It is historically true that nationalism and the struggle for independence was first started by the Malays, says the Prime Minister.
However, the country gained independence after the Malays, Chinese and Indian communities united to fight to free the country from British rule, said Datuk Seri Abdullah Ahmad Badawi.
Commenting on Education Minister Datuk Seri Hisham-muddin Tun Hussein’s statement on the role of the Malays in the country’s Independence that has caused some unhappiness among other races, Abdullah said “it’s a fact” and true that the Malays, led by Datuk Onn Jaafar, initiated the struggle for Independence.
Saying that “history cannot be forgotten and erased”, he added that Tunku Abdul Rahman took over Umno’s leadership from Datuk Onn and formed an alliance – Perikatan – with MCA and MIC which eventually saw the country gaining its Independence.
Abdullah said as there were also other races in the country, Tunku Abdul Rahman had the wisdom to bring all together in the struggle.
“Because all the races came together and were united in the cause, the British had no chance to divide and rule. They granted Independence,” he said.
The Prime Minister said the country continued to be governed by the Barisan Nasional under the concept of the people’s participation through the parties that represented all the races.
Meanwhile, Hishammuddin has denied he excluded the involvement of the MCA and MIC when he talked about the process of attaining the country’s independence, saying that several vernacular newspapers had quoted him out of context.
Source: TheStar
However, the country gained independence after the Malays, Chinese and Indian communities united to fight to free the country from British rule, said Datuk Seri Abdullah Ahmad Badawi.
Commenting on Education Minister Datuk Seri Hisham-muddin Tun Hussein’s statement on the role of the Malays in the country’s Independence that has caused some unhappiness among other races, Abdullah said “it’s a fact” and true that the Malays, led by Datuk Onn Jaafar, initiated the struggle for Independence.
Saying that “history cannot be forgotten and erased”, he added that Tunku Abdul Rahman took over Umno’s leadership from Datuk Onn and formed an alliance – Perikatan – with MCA and MIC which eventually saw the country gaining its Independence.
Abdullah said as there were also other races in the country, Tunku Abdul Rahman had the wisdom to bring all together in the struggle.
“Because all the races came together and were united in the cause, the British had no chance to divide and rule. They granted Independence,” he said.
The Prime Minister said the country continued to be governed by the Barisan Nasional under the concept of the people’s participation through the parties that represented all the races.
Meanwhile, Hishammuddin has denied he excluded the involvement of the MCA and MIC when he talked about the process of attaining the country’s independence, saying that several vernacular newspapers had quoted him out of context.
Source: TheStar
Friday, March 27, 2009
US Stocks Up, Dow At Highest Level In Six Weeks
NEW YORK: Wall Street's March rally gained momentum on Thursday - this time, thanks to surprisingly good earnings from some major consumer brands.
Strong demand for government debt at the Treasury Department's latest auction also lifted stocks. Investors had been nervous about the government's ability to fund its economic stimulus and financial bailout programs.
Best Buy Co., ConAgra Foods Inc., and Dr Pepper Snapple Group Inc. all turned in quarterly profits that beat analysts' modest expectations.
The Dow Jones industrial average rose 174 points Thursday to finish at its highest level in nearly six weeks.
The index has surged 21 percent since hitting a nearly 12-year low on March 9.
Market analysts are quick to point out that an advance of that size can quickly collapse, especially in an uncertain economic environment.
Kevin Kramer, chief operating officer at West End Financial Advisors, an asset management company in New York, contends unemployment, limited access to credit and heavy loads of debt will keep curbing growth.
"Just because things aren't getting worse doesn't mean they're getting better," Kramer said.
"You stopped the flow of blood out of my body, but it doesn't mean I'm going to survive."
But with the end of the first quarter quickly approaching, money managers are fearful of missing out on the recent rally, the magnitude of which usually occurs over the course of many years.
David Waddell, senior investment strategist and chief executive of Waddell & Associates, said he has seen some "seller's remorse" among his clients who sold stocks too low in the first two months of the year.
That can move people back into buying mode. "One thing that many people are beginning to believe is that the market is going to bottom in 2009," Waddell said.
The Dow jumped 174.75, or 2.3 percent, at 7,924.56, its highest close since Feb. 12.
The Standard & Poor's 500 index rose 18.98, or 2.3 percent, to 832.86.
The Nasdaq composite index rose 58.05, or 3.8 percent, to 1,587.00. - AP
Strong demand for government debt at the Treasury Department's latest auction also lifted stocks. Investors had been nervous about the government's ability to fund its economic stimulus and financial bailout programs.
Best Buy Co., ConAgra Foods Inc., and Dr Pepper Snapple Group Inc. all turned in quarterly profits that beat analysts' modest expectations.
The Dow Jones industrial average rose 174 points Thursday to finish at its highest level in nearly six weeks.
The index has surged 21 percent since hitting a nearly 12-year low on March 9.
Market analysts are quick to point out that an advance of that size can quickly collapse, especially in an uncertain economic environment.
Kevin Kramer, chief operating officer at West End Financial Advisors, an asset management company in New York, contends unemployment, limited access to credit and heavy loads of debt will keep curbing growth.
"Just because things aren't getting worse doesn't mean they're getting better," Kramer said.
"You stopped the flow of blood out of my body, but it doesn't mean I'm going to survive."
But with the end of the first quarter quickly approaching, money managers are fearful of missing out on the recent rally, the magnitude of which usually occurs over the course of many years.
David Waddell, senior investment strategist and chief executive of Waddell & Associates, said he has seen some "seller's remorse" among his clients who sold stocks too low in the first two months of the year.
That can move people back into buying mode. "One thing that many people are beginning to believe is that the market is going to bottom in 2009," Waddell said.
The Dow jumped 174.75, or 2.3 percent, at 7,924.56, its highest close since Feb. 12.
The Standard & Poor's 500 index rose 18.98, or 2.3 percent, to 832.86.
The Nasdaq composite index rose 58.05, or 3.8 percent, to 1,587.00. - AP
Thursday, March 26, 2009
UMNO's Golden Keris 'Retired' As The Party Seeks Renewal
UMNO has "retired" a famous "keris" that used to be brandished at party events because the gesture was regarded as ethnically divisive.
Hishamuddin Hussein, the leader of the party's influential and sometimes hot-headed youth wing, shot to fame for waving the keris above his head at annual meetings of the United Malays National Organisation.
But the resulting outcry, and elections a year ago that saw the UMNO-led coalition deserted by ethnic Chinese and Indians, have made such displays of Malay nationalism less acceptable.
Hishamuddin, who is stepping down after 11 years in the role, was today presented with the keris. It is now his for safe-keeping, after he delivered his last address to youth wing members at this UMNO get-together.
He raised the golden weapon to face level, but did not wave or unsheath it, and placed it back on its pillow while UMNO members dressed in traditional costume and black "songkok" hats cheered "Allahuakbar" or "God is great".
Hishamuddin, the son of a former prime minister, is now vying to become one of three party vice-presidents. He was in tears by the end of the event.
"This is our culture. Now the keris has been handed over to me for my personal care. The keris is no longer in the youth wing. I hope this is a closure to what has been disputed and misunderstood before," he told reporters.
The dagger issue became particularly divisive at the party's 2006 assembly, when it was linked with ultra-nationalist rhetoric that emerged there.
Some delegates said that Malays, who dominate the population of the multi-racial country, must be willing to fight "to the last drop of blood" to defend their rights.
Another speaker warned minorities to stop questioning the rights of the Malays and not to test their patience.
The fiery tone sparked concerns about the economic and religious rights of Malaysia's sizeable ethnic Chinese and Indian communities, and further strained race relations which have deteriorated in recent years.
The following year, Hishamuddin defied calls for restraint by again unsheathing the dagger and holding it aloft to thunderous applause, in a gesture widely seen as aggressive and inflammatory.
He subsequently apologised for the move, saying he did not intend to hurt the feelings of non-Malays.
Malaysia's population of more than 26 million consists of about 60 percent Malays but the economy is largely controlled by ethnic Chinese, who make up some 26 percent of the population. - AFP
Wednesday, March 25, 2009
Malaysia's Next Leader Calls For Radical Overhaul
Malaysia's next premier Najib Razak on Tuesday warned the ruling party it must embark on a radical overhaul to win back public support, or face the end of its half-century grip on power.
Najib's address to the United Malays National Organisation (UMNO) at the start of a landmark meeting where it will elect a new leadership, is an attempt to set a new direction for the party which was humbled in March 2008 polls.
"What is at stake is nothing less than the very fate of UMNO," said Najib, the current deputy premier, who is to succeed Prime Minister Abdullah Ahmad Badawi shortly after the five-day assembly concludes.
"Clearly, the results of that general election have been the worst in the history of our party," he said, after the UMNO-led coalition lost five states and a third of parliamentary seats to the opposition.
"It is an awful and bitter truth, but a truth nonetheless and one which we must accept," he told the party, which has floundered since the polls which redrew Malaysia's political landscape.
"We gather here tonight not to wallow in sadness nor to lament our fate. But as a party, we are here today but for one singular purpose, that is to chart the way forward for UMNO and our struggle," he said.
"The decision we collectively make at this assembly will determine the future of our party: whether we continue to shape and mould history, or just become an entry in the annals of history."
The assembly was launched with a speech by Abdullah, who is to step down after a disappointing six years in power during which he failed to implement promised political reforms including tackling corruption.
UMNO delegates will Thursday anoint Najib as the new UMNO president, and cast their votes for key roles including deputy president and heads of the youth and women's wings.
In line with UMNO custom, Najib is succeeding Abdullah unopposed. The party chief traditionally becomes prime minister and leader of the Barisan Nasional coalition of race-based parties.
Najib urged the delegates to choose wisely as they select the new leadership, and to reject vote-buying which is endemic in the party.
"We must resolve to eradicate money politics right down to the roots. If not, we will all be collectively responsible for the demise of this beloved party of ours."
He called for a new attitude within the party, which is seen as self-interested and out of touch, and said it must embrace a new generation of voters who are "better informed, very demanding and highly critical."
He urged members to embrace online media, which have become a phenomenon in Malaysia, successfully exploited by the opposition, which has been shut out of the government-linked mainstream media.
"Like it or not, we cannot regard the new media as our enemy," he said, in comments that came shortly after party officials said they had barred several online news portals from covering the UMNO assembly.
Despite the talk of reform, there are concerns that from its position of weakness, the party may reject calls for liberalisation and instead choose to shore up its support among conservatives.
Political observers say recent events, including sedition charges against an opposition veteran for criticising a Malay royal ruler, and the banning of two opposition newspapers, indicate a hardline approach could be in the offing.
Najib is expected to be sworn into power by the king in the first days of April but no date has been announced, giving rise to speculation that Abdullah may be reluctant to step down.
After emerging from his speech to delegates, the outgoing leader defended the lack of a formal plan.
"I know what I am supposed to do. There is no need to disturb me," he told reporters. - AFP
Najib's address to the United Malays National Organisation (UMNO) at the start of a landmark meeting where it will elect a new leadership, is an attempt to set a new direction for the party which was humbled in March 2008 polls.
"What is at stake is nothing less than the very fate of UMNO," said Najib, the current deputy premier, who is to succeed Prime Minister Abdullah Ahmad Badawi shortly after the five-day assembly concludes.
"Clearly, the results of that general election have been the worst in the history of our party," he said, after the UMNO-led coalition lost five states and a third of parliamentary seats to the opposition.
"It is an awful and bitter truth, but a truth nonetheless and one which we must accept," he told the party, which has floundered since the polls which redrew Malaysia's political landscape.
"We gather here tonight not to wallow in sadness nor to lament our fate. But as a party, we are here today but for one singular purpose, that is to chart the way forward for UMNO and our struggle," he said.
"The decision we collectively make at this assembly will determine the future of our party: whether we continue to shape and mould history, or just become an entry in the annals of history."
The assembly was launched with a speech by Abdullah, who is to step down after a disappointing six years in power during which he failed to implement promised political reforms including tackling corruption.
UMNO delegates will Thursday anoint Najib as the new UMNO president, and cast their votes for key roles including deputy president and heads of the youth and women's wings.
In line with UMNO custom, Najib is succeeding Abdullah unopposed. The party chief traditionally becomes prime minister and leader of the Barisan Nasional coalition of race-based parties.
Najib urged the delegates to choose wisely as they select the new leadership, and to reject vote-buying which is endemic in the party.
"We must resolve to eradicate money politics right down to the roots. If not, we will all be collectively responsible for the demise of this beloved party of ours."
He called for a new attitude within the party, which is seen as self-interested and out of touch, and said it must embrace a new generation of voters who are "better informed, very demanding and highly critical."
He urged members to embrace online media, which have become a phenomenon in Malaysia, successfully exploited by the opposition, which has been shut out of the government-linked mainstream media.
"Like it or not, we cannot regard the new media as our enemy," he said, in comments that came shortly after party officials said they had barred several online news portals from covering the UMNO assembly.
Despite the talk of reform, there are concerns that from its position of weakness, the party may reject calls for liberalisation and instead choose to shore up its support among conservatives.
Political observers say recent events, including sedition charges against an opposition veteran for criticising a Malay royal ruler, and the banning of two opposition newspapers, indicate a hardline approach could be in the offing.
Najib is expected to be sworn into power by the king in the first days of April but no date has been announced, giving rise to speculation that Abdullah may be reluctant to step down.
After emerging from his speech to delegates, the outgoing leader defended the lack of a formal plan.
"I know what I am supposed to do. There is no need to disturb me," he told reporters. - AFP
Obama Says US$3.6 Trillion Budget Will Create Jobs, Cut Deficit
WASHINGTON President Barack Obama says his ambitious US$3.6 trillion budget will put economic recovery on a stronger foundation that ensures the nation doesn't face another crisis in 10 or 20 years.
At a prime-time news conference Tuesday (Wednesday morning Malaysian time) Obama said: "We will recover from this recession."
Defending his budget from Republican critics and some in his party, Obama said his spending plan will lead to new energy jobs and less dependence on foreign oil.
He said it invests in education, health care and makes the tough choices to cut the deficit in half by the end of his first term.
He says the budget should not continue past policies that have led to "narrow prosperity and massive debt" - a rebuke to Republicans.
Other pointes he made:
Obama says he's not ready to comment on a proposal from some Senate Democrats to scrap his middle-class tax cut after 2010.
Obama says he hasn't yet seen what changes are coming out of the House and Senate.
But he delivered his bottom-line on the budget at a Tuesday evening news conference.
Obama said the budget must move toward health care reform and include an energy policy that frees the U.S. from dependence on foreign oil.
He also says he's looking for investment in education and a reduction in the deficit.
Obama said a middle-class tax cut is already in place through the recovery package for at least two years.
And he said he never expected Congress to approve his plan without some changes. - AP
Obama is defending his decision to wait a few days before expressing his anger over the bonuses paid out to executives at troubled insurer AIG.
Critics questioned why the president seemed days behind the populist anger over the $165 million that were distributed to executives of the company bailed out with federal tax dollars.
Said Obama: "It took us a couple days because I like to know what I'm talking about before I speak."
Obama says he can save money on defense and veterans programs by targeting the way the military buys its equipment.
He says the country can remain safe and make sure veterans have the services they deserve.
Obama says too often in recent years, returning veterans haven't been given what they need in such areas as treatment for post-traumatic stress and serious brain injuries.
He says he wants to serve those veterans and reduce military spending by keeping close tabs on the way contractors and lobbyists do business.
He told reporters at a Tuesday evening news conference that he's already targeted $40 billion in procurement savings, and that he'll continue to look for ways to reduce wasteful spending on multibillion-dollar weapons systems.
At a time when millions of Americans are losing their jobs and their homes, President Barack Obama says he's "heartbroken" that any children are without a roof over their heads.
Obama says the "most important thing" that he can do for those children is make sure that their parents have jobs. And he again pointed to his plan to save or create 3.5 million jobs through his economic stimulus package.
He says in the meantime, he wants to work with states to help those who are "falling through the cracks."
He said there needs to be a "change in attitude" in the country, so that it isn't seen as "acceptable" for children and families to be homeless. - AP
At a prime-time news conference Tuesday (Wednesday morning Malaysian time) Obama said: "We will recover from this recession."
Defending his budget from Republican critics and some in his party, Obama said his spending plan will lead to new energy jobs and less dependence on foreign oil.
He said it invests in education, health care and makes the tough choices to cut the deficit in half by the end of his first term.
He says the budget should not continue past policies that have led to "narrow prosperity and massive debt" - a rebuke to Republicans.
Other pointes he made:
Obama says he's not ready to comment on a proposal from some Senate Democrats to scrap his middle-class tax cut after 2010.
Obama says he hasn't yet seen what changes are coming out of the House and Senate.
But he delivered his bottom-line on the budget at a Tuesday evening news conference.
Obama said the budget must move toward health care reform and include an energy policy that frees the U.S. from dependence on foreign oil.
He also says he's looking for investment in education and a reduction in the deficit.
Obama said a middle-class tax cut is already in place through the recovery package for at least two years.
And he said he never expected Congress to approve his plan without some changes. - AP
Obama is defending his decision to wait a few days before expressing his anger over the bonuses paid out to executives at troubled insurer AIG.
Critics questioned why the president seemed days behind the populist anger over the $165 million that were distributed to executives of the company bailed out with federal tax dollars.
Said Obama: "It took us a couple days because I like to know what I'm talking about before I speak."
Obama says he can save money on defense and veterans programs by targeting the way the military buys its equipment.
He says the country can remain safe and make sure veterans have the services they deserve.
Obama says too often in recent years, returning veterans haven't been given what they need in such areas as treatment for post-traumatic stress and serious brain injuries.
He says he wants to serve those veterans and reduce military spending by keeping close tabs on the way contractors and lobbyists do business.
He told reporters at a Tuesday evening news conference that he's already targeted $40 billion in procurement savings, and that he'll continue to look for ways to reduce wasteful spending on multibillion-dollar weapons systems.
At a time when millions of Americans are losing their jobs and their homes, President Barack Obama says he's "heartbroken" that any children are without a roof over their heads.
Obama says the "most important thing" that he can do for those children is make sure that their parents have jobs. And he again pointed to his plan to save or create 3.5 million jobs through his economic stimulus package.
He says in the meantime, he wants to work with states to help those who are "falling through the cracks."
He said there needs to be a "change in attitude" in the country, so that it isn't seen as "acceptable" for children and families to be homeless. - AP
How Do You Measure A Company’s Financial Health?
Personal Investing - By ooi Kok Hwa
Altman’s Z-Score helps investors determine the bankruptcy risk of a firm
DESPITE the recent strong stock market rally as a result of the current tough economic environment, some investors may still doubt the financial health of some listed companies.
At present, apart from some common financial ratios such as debt-to-equity and interest coverage ratios, investors are looking for a ratio that can provide an indicator on the potential bankruptcy risk for any listed companies.
In this article, we will look into a method called Altman’s Z-Score, which can help us determine the bankruptcy risk of a company.
The Altman’s Z-Score Method was developed by Dr Edward I. Altman in 1968. It is a multivariate formula to measure the financial health of a company on whether it will enter into bankruptcy in the coming two years.
This method uses five common business ratios: earnings before interest and tax (ebit)/total assets ratio; sales/total assets ratio; market value of equity/market value of total liabilities; working capital/total asset ratio and retained earnings/total assets.
The Z-Score is computed using a weighted system based on the formula below:-
Z= 3.3X1 + X2 + 0.6X3 + 1.2X4 +1.4X5
Where:
X1 = ebit/total assets
X2 = sales/total assets
X3 = market value of equity/total liabilities
X4 = working capital/total assets
X5 = retained earnings/total assets
According to Altman, if the score is 3.0 or above, bankruptcy is not likely. If the score is 1.8 or less, potential financial embarrassment is very high.
A score between 1.8 and 3.0 is the grey area where the company has a high risk of going into bankruptcy within the next two years from the date of the given financial figures.
Hence, we can conclude that we should look for companies with higher Z-Scores for investing.
We have computed Z-Scores for two listed companies, Company A and Company E. Company A is consumer-based whereas Company E is property-based. We notice that Company A has a strong Z-Score value of 5.78 versus a very low 0.62 for Company E. Based on Z-Score, Company A is very unlikely to go bankrupt (5.78>3.00) whereas the chances of Company E going into bankruptcy is very high (0.62<1.80).
The reason behind the very low Z-Score value for Company E was because it had a very low market value over its total liabilities as compared to the high market value for Company A. In fact, Company E is currently having financial difficulties and is under PN17 (Practice Notes 17).
In short, companies with higher profit margins, sales, market value, working capital and retained earnings against their total assets will command a higher Z-Score.
This method is popular in the Western countries where some accountants found it quite reliable and accurate.
In the Malaysian context, according to a user manual published by Dynaquest Sdn Bhd, they found that the cut-off at around 1.5 is a better measurement of the likelihood of bankruptcy as compared to the 1.8 stated by Altman.
It may appear that companies selling at higher market value are safer than companies with lower market value. However, sometimes we may be tempted to nibble companies with lower stock prices.
We should be aware that the current very low stock prices for certain companies may indicate to us that the coming financial results of these companies might be quite disappointing.
However, we should be aware that Z-Score does not apply to every situation. We may want to use additional financial ratio like debt-to-equity ratio to complement this method.
Altman’s Z-Score helps investors determine the bankruptcy risk of a firm
DESPITE the recent strong stock market rally as a result of the current tough economic environment, some investors may still doubt the financial health of some listed companies.
At present, apart from some common financial ratios such as debt-to-equity and interest coverage ratios, investors are looking for a ratio that can provide an indicator on the potential bankruptcy risk for any listed companies.
In this article, we will look into a method called Altman’s Z-Score, which can help us determine the bankruptcy risk of a company.
The Altman’s Z-Score Method was developed by Dr Edward I. Altman in 1968. It is a multivariate formula to measure the financial health of a company on whether it will enter into bankruptcy in the coming two years.
This method uses five common business ratios: earnings before interest and tax (ebit)/total assets ratio; sales/total assets ratio; market value of equity/market value of total liabilities; working capital/total asset ratio and retained earnings/total assets.
The Z-Score is computed using a weighted system based on the formula below:-
Z= 3.3X1 + X2 + 0.6X3 + 1.2X4 +1.4X5
Where:
X1 = ebit/total assets
X2 = sales/total assets
X3 = market value of equity/total liabilities
X4 = working capital/total assets
X5 = retained earnings/total assets
According to Altman, if the score is 3.0 or above, bankruptcy is not likely. If the score is 1.8 or less, potential financial embarrassment is very high.
A score between 1.8 and 3.0 is the grey area where the company has a high risk of going into bankruptcy within the next two years from the date of the given financial figures.
Hence, we can conclude that we should look for companies with higher Z-Scores for investing.
We have computed Z-Scores for two listed companies, Company A and Company E. Company A is consumer-based whereas Company E is property-based. We notice that Company A has a strong Z-Score value of 5.78 versus a very low 0.62 for Company E. Based on Z-Score, Company A is very unlikely to go bankrupt (5.78>3.00) whereas the chances of Company E going into bankruptcy is very high (0.62<1.80).
The reason behind the very low Z-Score value for Company E was because it had a very low market value over its total liabilities as compared to the high market value for Company A. In fact, Company E is currently having financial difficulties and is under PN17 (Practice Notes 17).
In short, companies with higher profit margins, sales, market value, working capital and retained earnings against their total assets will command a higher Z-Score.
This method is popular in the Western countries where some accountants found it quite reliable and accurate.
In the Malaysian context, according to a user manual published by Dynaquest Sdn Bhd, they found that the cut-off at around 1.5 is a better measurement of the likelihood of bankruptcy as compared to the 1.8 stated by Altman.
It may appear that companies selling at higher market value are safer than companies with lower market value. However, sometimes we may be tempted to nibble companies with lower stock prices.
We should be aware that the current very low stock prices for certain companies may indicate to us that the coming financial results of these companies might be quite disappointing.
However, we should be aware that Z-Score does not apply to every situation. We may want to use additional financial ratio like debt-to-equity ratio to complement this method.
Monday, March 23, 2009
Are Asia’s economic woes just beginning?
In Perspective - Baljeet Grewal
The risks of a deeper downturn are intensifying
WHEN written in Chinese, the word “crisis” is represented by two key characters: one represents danger and the other represents opportunity. Whilst Asia will remain best placed globally to take advantage of any potential upswing in fundamentals, the near term outlook remains desolate. The financial crisis has now unraveled into an economic crisis which it caused; and Asia gives the best evidence.
Asian banks did not, as a rule, purchase or invest in substantial toxic debt or subprime products. Leverage was readily available. And yet, the region will not remain unscathed from the ongoing crisis.
The global economy, now supported at its core by the overextended US consumer, finds itself stalling, susceptible to any number of potential external shocks. Ultimately, the economic malaise created by this convergence of events will take years to unwind.
Also, geopolitical events become volatile in a world of economic insecurity, leading to political upheaval and protectionism. A positive outcome to this process is dependent wholly on liquidation of excess credit and consumption.
In Asia, the prospect of sluggish growth and depleting consumer confidence now debunks any notion of “decoupling” from the United States. In fact, more and more, 2009 is seeing a ‘recoupling’ of Asian dynamics with the global economy, underlying similar economic traits of the West. Whilst governments in the region advocate that Asia is well-placed to withstand financial instability, the risks of a deeper downturn are intensifying.
In its economic evolutionary process, the boom bust cycles in Asia have been unprecedented in terms of volatility in the prices of commodities, currencies, real estate and stocks.
Although all global crises have been different, in terms of its impact on Asia, many have shared common features. They begin with capital inflows from foreigners swayed by tales of economic enchantment. This generates low real interest rates and a widening current account deficit.
As a result, domestic borrowing and spending surge, particularly investment in property. Asset prices soar, borrowing increases and the capital inflow grows. Finally, a correction occurs, capital floods out and the banking system is burdened with debt.
With variations, this story has been repeated time and again. It has been particularly common in emerging economies. But it is also familiar to those who have followed the US economy in the last eight years.
The case for a much more resilient Asia this time round has been conditional on strong domestic demand, and room for policy maneuvering to expand consumption and spending. But Asian countries are mostly net producers, while the US is a net consumer. A reduction in global demand means a reduction in global supply.
The credit crisis and the ensuing tidal wave of economic recession have triggered reduced global demand. With this, Asia could potentially bear the brunt of the problem through reduced global supply.
The US, as a consequence of the crisis, is currently undergoing a period of seismic economic adjustment in which consumption and investment relative to GDP are crash landing, and as a result, savings will increase (over time). This, in the long run will imply a reduction in the US current account deficit and, hence, a reduction in Asian current accounts and trade surpluses (read: reduction in exports).
Given that China is the US’s second-largest importer and the country with which the US has the largest bilateral trade deficit with, China – the bastion of Asia’s economic hope – is likely to bear a large part of the adjustment.
Other export driven economies like Taiwan, South Korea and Malaysia will see varying degrees of this adjustment impact trade and growth. The danger is that with the combination of external shocks, a fall in asset and commodity prices and demand shrinking, the Asian consumer is not able on its own to spend its way out of the crisis.
Faced with the daunting prospect of dismal growth, Asian economies have no other choice: with demand shrinking in Western markets, either domestic demand must compensate, or supply must shrink. Reflating domestic demand will mean entire export industries will have to turn inward and serve domestic sectors – a process which will take decades given that Asian industries are “intermediate” in nature. Above all, domestic demand cannot replace export demand given the relatively low per capital income in most of emerging Asia.
The key to a recovery lies with government intervention. Asia needs to spend its way out of a crisis. While no singular government spending will fill the gap to reflate an economy, a concerted effort by Asian governments to get fiscal, and collectively, may work. Policy measures have thus far been domestically driven and reactionary.
A more coordinated effort within the region in disseminating fiscal spending and its target sector will serve to boost confidence especially through fiscal measures that offer the prospect of resuscitating growth and disposable incomes. Close scrutiny will show that most crisis situations are either opportunities to advance, or stay stagnant. As such, the prospect for a collective Asian voice is now more pressing than ever.
The global economy is more than the sum of its parts – and so policy direction becomes crucial. It’s near impossible to predict whether policymakers will succeed in preventing the recession turning into a prolonged economic calamity, and lay the foundations for a sustainable recovery.
But what we can predict with near certainty is that policy will matter a great deal in 2009.
The risks of a deeper downturn are intensifying
WHEN written in Chinese, the word “crisis” is represented by two key characters: one represents danger and the other represents opportunity. Whilst Asia will remain best placed globally to take advantage of any potential upswing in fundamentals, the near term outlook remains desolate. The financial crisis has now unraveled into an economic crisis which it caused; and Asia gives the best evidence.
Asian banks did not, as a rule, purchase or invest in substantial toxic debt or subprime products. Leverage was readily available. And yet, the region will not remain unscathed from the ongoing crisis.
The global economy, now supported at its core by the overextended US consumer, finds itself stalling, susceptible to any number of potential external shocks. Ultimately, the economic malaise created by this convergence of events will take years to unwind.
Also, geopolitical events become volatile in a world of economic insecurity, leading to political upheaval and protectionism. A positive outcome to this process is dependent wholly on liquidation of excess credit and consumption.
In Asia, the prospect of sluggish growth and depleting consumer confidence now debunks any notion of “decoupling” from the United States. In fact, more and more, 2009 is seeing a ‘recoupling’ of Asian dynamics with the global economy, underlying similar economic traits of the West. Whilst governments in the region advocate that Asia is well-placed to withstand financial instability, the risks of a deeper downturn are intensifying.
In its economic evolutionary process, the boom bust cycles in Asia have been unprecedented in terms of volatility in the prices of commodities, currencies, real estate and stocks.
Although all global crises have been different, in terms of its impact on Asia, many have shared common features. They begin with capital inflows from foreigners swayed by tales of economic enchantment. This generates low real interest rates and a widening current account deficit.
As a result, domestic borrowing and spending surge, particularly investment in property. Asset prices soar, borrowing increases and the capital inflow grows. Finally, a correction occurs, capital floods out and the banking system is burdened with debt.
With variations, this story has been repeated time and again. It has been particularly common in emerging economies. But it is also familiar to those who have followed the US economy in the last eight years.
The case for a much more resilient Asia this time round has been conditional on strong domestic demand, and room for policy maneuvering to expand consumption and spending. But Asian countries are mostly net producers, while the US is a net consumer. A reduction in global demand means a reduction in global supply.
The credit crisis and the ensuing tidal wave of economic recession have triggered reduced global demand. With this, Asia could potentially bear the brunt of the problem through reduced global supply.
The US, as a consequence of the crisis, is currently undergoing a period of seismic economic adjustment in which consumption and investment relative to GDP are crash landing, and as a result, savings will increase (over time). This, in the long run will imply a reduction in the US current account deficit and, hence, a reduction in Asian current accounts and trade surpluses (read: reduction in exports).
Given that China is the US’s second-largest importer and the country with which the US has the largest bilateral trade deficit with, China – the bastion of Asia’s economic hope – is likely to bear a large part of the adjustment.
Other export driven economies like Taiwan, South Korea and Malaysia will see varying degrees of this adjustment impact trade and growth. The danger is that with the combination of external shocks, a fall in asset and commodity prices and demand shrinking, the Asian consumer is not able on its own to spend its way out of the crisis.
Faced with the daunting prospect of dismal growth, Asian economies have no other choice: with demand shrinking in Western markets, either domestic demand must compensate, or supply must shrink. Reflating domestic demand will mean entire export industries will have to turn inward and serve domestic sectors – a process which will take decades given that Asian industries are “intermediate” in nature. Above all, domestic demand cannot replace export demand given the relatively low per capital income in most of emerging Asia.
The key to a recovery lies with government intervention. Asia needs to spend its way out of a crisis. While no singular government spending will fill the gap to reflate an economy, a concerted effort by Asian governments to get fiscal, and collectively, may work. Policy measures have thus far been domestically driven and reactionary.
A more coordinated effort within the region in disseminating fiscal spending and its target sector will serve to boost confidence especially through fiscal measures that offer the prospect of resuscitating growth and disposable incomes. Close scrutiny will show that most crisis situations are either opportunities to advance, or stay stagnant. As such, the prospect for a collective Asian voice is now more pressing than ever.
The global economy is more than the sum of its parts – and so policy direction becomes crucial. It’s near impossible to predict whether policymakers will succeed in preventing the recession turning into a prolonged economic calamity, and lay the foundations for a sustainable recovery.
But what we can predict with near certainty is that policy will matter a great deal in 2009.
Uncertain Times For Property
By EDY SARIF
Industry players express mixed feedback on market outlook
THE property outlook in Malaysia remains uncertain with industry players giving mixed feedback.
The Malaysian Institute of Estate Agents (MIEA) president K. Soma Sundram believes the local real estate industry is still resilient.
“Based on the feedback from our members, they are still doing business as usual, in fact some of them are doing much better. We are not in recession yet, the only thing that is happening now is that investors are adapting a wait-and-see attitude,” he said.
“Though the market around KLCC area is expected to go down by 15% to 20%, other places such as Bangsar, Subang Jaya and Damansara Heights are still maintaining their prices,” he added.
People with cash were still on the lookout for properties, Soma noted.
“First-time buyers for example, are still looking for affordable properties to buy or invest in and real estate agents need to adapt to tap this market and offer suitable locations for them to close more deals,” he said.
Soma said with developers giving out more incentives and doing more promotions, there were still plenty of jobs for real estate agents.
Zerin Properties executive Lalitha Anandarajah, who has been covering sales and leasing of office space in the past few months, said there had been an increase in demand for office spaces, and almost 70% of the enquiries were businesses looking to shift to more competitive rentals.
“There has also been an increase in demand for furnished offices to defray costs on renovation,” she said.
But at Venture Properties, senior negotiator Gary Lee is beginning to feel the impact of the economic slowdown.
“The number of cases has reduced since three to four months ago as the result of the slowdown in the global economy and this include local and foreign parties,” he said.
A real estate agent covering both office and residential sales/lease said the market had made a turn for the worse.
“Some of my clients aborted plans to secure new premises. It is not a good sign. Even expatriates looking for houses to rent are looking for more short-term agreements,” she said.
Another real estate agent said the market was extremely slow especially for the high-end residential units.
She said there were still expatriates coming in but their budget was now much lower.
“Honestly speaking, I don’t see many European expatriates coming in to the country compared with the previous years.
“Right now, I have to change my strategy by expanding my network and focusing on condominiums with much lower rent,” she said.
Industry players express mixed feedback on market outlook
THE property outlook in Malaysia remains uncertain with industry players giving mixed feedback.
The Malaysian Institute of Estate Agents (MIEA) president K. Soma Sundram believes the local real estate industry is still resilient.
“Based on the feedback from our members, they are still doing business as usual, in fact some of them are doing much better. We are not in recession yet, the only thing that is happening now is that investors are adapting a wait-and-see attitude,” he said.
“Though the market around KLCC area is expected to go down by 15% to 20%, other places such as Bangsar, Subang Jaya and Damansara Heights are still maintaining their prices,” he added.
People with cash were still on the lookout for properties, Soma noted.
“First-time buyers for example, are still looking for affordable properties to buy or invest in and real estate agents need to adapt to tap this market and offer suitable locations for them to close more deals,” he said.
Soma said with developers giving out more incentives and doing more promotions, there were still plenty of jobs for real estate agents.
Zerin Properties executive Lalitha Anandarajah, who has been covering sales and leasing of office space in the past few months, said there had been an increase in demand for office spaces, and almost 70% of the enquiries were businesses looking to shift to more competitive rentals.
“There has also been an increase in demand for furnished offices to defray costs on renovation,” she said.
But at Venture Properties, senior negotiator Gary Lee is beginning to feel the impact of the economic slowdown.
“The number of cases has reduced since three to four months ago as the result of the slowdown in the global economy and this include local and foreign parties,” he said.
A real estate agent covering both office and residential sales/lease said the market had made a turn for the worse.
“Some of my clients aborted plans to secure new premises. It is not a good sign. Even expatriates looking for houses to rent are looking for more short-term agreements,” she said.
Another real estate agent said the market was extremely slow especially for the high-end residential units.
She said there were still expatriates coming in but their budget was now much lower.
“Honestly speaking, I don’t see many European expatriates coming in to the country compared with the previous years.
“Right now, I have to change my strategy by expanding my network and focusing on condominiums with much lower rent,” she said.
EPF's Azlan explains timing of overseas investments
By YAP LENG KUEN
THINGS were going on well for the first three quarters of last year, Then in October, the markets saw the crash of the 120-year-old Lehman Brothers and the snowballing of the US subprime problem.
Other funds have been badly affected too. Calpers, the US’ largest pension fund, has dropped by 28% in value; Khazanah 20% and Temasek 31%.
The Singapore central provident fund has two accounts – ordinary that is paying a dividend of 2.5% while retirement and medisave is paying 4%.
An analysis of the EPF dividend over the last five years, split into equity and fixed income, revealed that without making any provisions, the dividend could be much higher.
Could the timing of the overseas investments be held back in view of red hot prices already at a high in many equity and commodity markets? Was there any advice against this at that time?
“There was no advice internally or externally not to enter these foreign markets at a high,’’ said EPF CEO Datuk Azlan Zainol. In fact, one or two organisations that the EPF met had expressed their support as they also agreed that Malaysia was a small market.
“Every time we go into the market in Malaysia, we end up owning stocks like Maybank where we would be holding a stake of less than 20%. We shouldn’t have such high stakes as 15%-16% in Malaysian companies,’’ he said.
The fund has strategic stakes only in the RHB group, Malaysia Building Society Bhd and Malaysian Resources Corp Bhd.
“For the rest of the companies, we should only be looking at 5%-9% stakes. Because we have no choice, we have to buy into these so-called good counters,’’ he said.
On top of that, each time the EPF goes into the market, it accounts for almost 20% of the volume. “That is not good. By right, a fund should not take more than 5% of the volume especially when the market is so dull,’’ he said.
The fund started going abroad in 2007 and 2008. “If people say the timing was not so good, the answer is ‘yes’ and ‘no’. Suppose the subprime market and Lehman had not collapsed, it would have been good. Did anybody say at the beginning of last year that this was going to happen?’’
No doubt, economists had been voicing their concerns over subprime and high levels of debt. “But nobody could foresee that it would be so terrible.
“Can anyone imagine that a 100-year-old bank can just go down like that, or Citigroup would shrink in value in just 12 months to US$1 from US$100?’’ he asked.
In retrospect, it is very easy to say what should not have been done. But the fund has been selling too. In January alone, it sold RM5bil in domestic equity.
“We were selling and luckily, we sold a 25% stake of RHB Capital to Abu Dhabi Commercial Bank at RM7.20. Today, RHB is only RM2-RM3. But I don’t think that was very clever as I thought I could get RM10. That is luck,’’ he said.
However, the EPF’s performance in equity investments had dropped by less than 20% in both domestic (18.4%) and overseas markets (19.5%). In comparison, the KLCI had dived by 39.3% and the Dow Jones 33.8%.
The Tokyo, Hong Kong and Singapore markets were down by more than 40% last year compared with 2007.
THINGS were going on well for the first three quarters of last year, Then in October, the markets saw the crash of the 120-year-old Lehman Brothers and the snowballing of the US subprime problem.
Other funds have been badly affected too. Calpers, the US’ largest pension fund, has dropped by 28% in value; Khazanah 20% and Temasek 31%.
The Singapore central provident fund has two accounts – ordinary that is paying a dividend of 2.5% while retirement and medisave is paying 4%.
An analysis of the EPF dividend over the last five years, split into equity and fixed income, revealed that without making any provisions, the dividend could be much higher.
Could the timing of the overseas investments be held back in view of red hot prices already at a high in many equity and commodity markets? Was there any advice against this at that time?
“There was no advice internally or externally not to enter these foreign markets at a high,’’ said EPF CEO Datuk Azlan Zainol. In fact, one or two organisations that the EPF met had expressed their support as they also agreed that Malaysia was a small market.
“Every time we go into the market in Malaysia, we end up owning stocks like Maybank where we would be holding a stake of less than 20%. We shouldn’t have such high stakes as 15%-16% in Malaysian companies,’’ he said.
The fund has strategic stakes only in the RHB group, Malaysia Building Society Bhd and Malaysian Resources Corp Bhd.
“For the rest of the companies, we should only be looking at 5%-9% stakes. Because we have no choice, we have to buy into these so-called good counters,’’ he said.
On top of that, each time the EPF goes into the market, it accounts for almost 20% of the volume. “That is not good. By right, a fund should not take more than 5% of the volume especially when the market is so dull,’’ he said.
The fund started going abroad in 2007 and 2008. “If people say the timing was not so good, the answer is ‘yes’ and ‘no’. Suppose the subprime market and Lehman had not collapsed, it would have been good. Did anybody say at the beginning of last year that this was going to happen?’’
No doubt, economists had been voicing their concerns over subprime and high levels of debt. “But nobody could foresee that it would be so terrible.
“Can anyone imagine that a 100-year-old bank can just go down like that, or Citigroup would shrink in value in just 12 months to US$1 from US$100?’’ he asked.
In retrospect, it is very easy to say what should not have been done. But the fund has been selling too. In January alone, it sold RM5bil in domestic equity.
“We were selling and luckily, we sold a 25% stake of RHB Capital to Abu Dhabi Commercial Bank at RM7.20. Today, RHB is only RM2-RM3. But I don’t think that was very clever as I thought I could get RM10. That is luck,’’ he said.
However, the EPF’s performance in equity investments had dropped by less than 20% in both domestic (18.4%) and overseas markets (19.5%). In comparison, the KLCI had dived by 39.3% and the Dow Jones 33.8%.
The Tokyo, Hong Kong and Singapore markets were down by more than 40% last year compared with 2007.
Obama advisers urge restraint on AIG bonus issue
WASHINGTON: The White House said using tax law to pry bonuses from bailed-out company executives is "a dangerous way to go" and a Republican senator on Sunday advised against the mob mentality that has Congress "grabbing its pitchforks and charging up the hill" in pursuit of the cash.
While acknowledging public outrage over $165 million in bonuses paid to a financial firm that just months earlier had turned to taxpayers for aid, the administration's economic advisers said President Barack Obama wouldn't "govern out of anger."
Obama's economic team has to deal with a plan backed by the House of Representatives that would tax American International Group Inc. executives 90 percent of bonuses paid this year.
The president, they added, did not embrace the populist legislation.
Rep. Barney Frank, the Massachusetts Democrat who heads the powerful House banking committee, supported the legislation but said Washington should consider more steps, including suing AIG to recoup the money.
The government has an 80 percent equity stake in the insurance giant, a position Frank said should be used "to assert our rights."
The White House and Senate Democrats, including Senate banking chairman Kent Conrad, urged restraint, instead hoping executives would voluntarily return their bonuses.
Vice President Joe Biden's economic adviser, Jared Bernstein, criticized the AIG tax plan as it headed to the Senate, where it was likely to be modified with bipartisan backing.
"I think the president would be concerned that this bill may have some problems in going too far - the House bill may go too far in terms of some - some legal issues, constitutional validity, using the tax code to surgically punish a small group,"
Bernstein said. "That may be a dangerous way to go."
Populist anger came to a head last week when the Obama administration went on the defensive against AIG's bonuses.
It was a distraction for the administration as it sought support for Obama's ambitious $3.6 trillion budget and a defense for Geithner, for whom Wall Street's woes have become his chief task.
White House economic adviser Austen Goolsbee said Sunday that Obama understands the anger and that the easiest thing would be for AIG executives to return the bonuses.
"The president's also been clear we don't want to govern out of anger. He's going to look at what comes out of the House, what comes out of the Senate, see what ideas we have," Goolsbee said.
Republicans and Senate Democrats seemed to line up with the president's policy team.
"People are disgusted and outraged, as they should be," said Republican Sen. Judd Gregg of New Hampshire.
"But let's not overreact in a way that basically has the Congress grabbing its pitchforks, and charging up the hill, and abusing what is a core authority of a government, which is the authority to tax its people."
The bailed-out insurance giant paid bonuses totaling $165 million to employees, including traders in the Financial Products unit that nearly took the company and the U.S. financial system to the brink of collapse.
AIG has received $182.5 billion in federal bailout money and is now 80 percent government-owned.
Populist anger led the House to pass a bill that would impose a 90 percent tax on bonuses given to employees with family incomes above $250,000 at AIG and other companies that have received at least $5 billion in government bailout money.
It would apply to any such bonuses issued since Dec. 31.
On Saturday, a busload of activists representing working- and middle-class families paid visits to the lavish homes of AIG executives in Connecticut to protest the bonuses awarded by the struggling insurance company.
About 40 protesters sought to urge AIG executives who received a portion of the $165 million in bonuses to do more to help families.
American International Group Inc. has said it was contractually obligated to give the retention bonuses, payments designed to keep valued employees from quitting, to people in its financial products unit, based in Wilton, Connecticut.
AIG chairman Edward Liddy has urged any executive who received more than $100,000 in bonus payments to return at least half.
He told a House subcommittee last week that some of the executives have "already stepped forward and returned 100 percent."
AIG has argued that retention bonuses are crucial to pulling the company out of its crisis.
Without the bonuses, the company says, top employees who best understand AIG's business would leave.
"We think $165 million could be used in a more appropriate way to keep people in their homes, create more jobs and health care," said protester Emeline Bravo-Blackport, a gardener.
The company, in response to the protests, said all its employees were "working very hard to pay back the government and help the U.S. economy recover."
"The people working at AIG today are part of the solution, not part of the problem," company spokeswoman Christina Pretto said in an e-mailed statement.
The group also protested at the office of AIG's financial products division in Wilton, where they waved signs and chanted, "Money for the needy, not for the greedy!"
There were no arrests.
Bernstein spoke on ABC television's "This Week." Goolsbee appeared on CBS' "Face the Nation." Gregg appeared on CNN's "State of the Union."
Source: TheStar
While acknowledging public outrage over $165 million in bonuses paid to a financial firm that just months earlier had turned to taxpayers for aid, the administration's economic advisers said President Barack Obama wouldn't "govern out of anger."
Obama's economic team has to deal with a plan backed by the House of Representatives that would tax American International Group Inc. executives 90 percent of bonuses paid this year.
The president, they added, did not embrace the populist legislation.
Rep. Barney Frank, the Massachusetts Democrat who heads the powerful House banking committee, supported the legislation but said Washington should consider more steps, including suing AIG to recoup the money.
The government has an 80 percent equity stake in the insurance giant, a position Frank said should be used "to assert our rights."
The White House and Senate Democrats, including Senate banking chairman Kent Conrad, urged restraint, instead hoping executives would voluntarily return their bonuses.
Vice President Joe Biden's economic adviser, Jared Bernstein, criticized the AIG tax plan as it headed to the Senate, where it was likely to be modified with bipartisan backing.
"I think the president would be concerned that this bill may have some problems in going too far - the House bill may go too far in terms of some - some legal issues, constitutional validity, using the tax code to surgically punish a small group,"
Bernstein said. "That may be a dangerous way to go."
Populist anger came to a head last week when the Obama administration went on the defensive against AIG's bonuses.
It was a distraction for the administration as it sought support for Obama's ambitious $3.6 trillion budget and a defense for Geithner, for whom Wall Street's woes have become his chief task.
White House economic adviser Austen Goolsbee said Sunday that Obama understands the anger and that the easiest thing would be for AIG executives to return the bonuses.
"The president's also been clear we don't want to govern out of anger. He's going to look at what comes out of the House, what comes out of the Senate, see what ideas we have," Goolsbee said.
Republicans and Senate Democrats seemed to line up with the president's policy team.
"People are disgusted and outraged, as they should be," said Republican Sen. Judd Gregg of New Hampshire.
"But let's not overreact in a way that basically has the Congress grabbing its pitchforks, and charging up the hill, and abusing what is a core authority of a government, which is the authority to tax its people."
The bailed-out insurance giant paid bonuses totaling $165 million to employees, including traders in the Financial Products unit that nearly took the company and the U.S. financial system to the brink of collapse.
AIG has received $182.5 billion in federal bailout money and is now 80 percent government-owned.
Populist anger led the House to pass a bill that would impose a 90 percent tax on bonuses given to employees with family incomes above $250,000 at AIG and other companies that have received at least $5 billion in government bailout money.
It would apply to any such bonuses issued since Dec. 31.
On Saturday, a busload of activists representing working- and middle-class families paid visits to the lavish homes of AIG executives in Connecticut to protest the bonuses awarded by the struggling insurance company.
About 40 protesters sought to urge AIG executives who received a portion of the $165 million in bonuses to do more to help families.
American International Group Inc. has said it was contractually obligated to give the retention bonuses, payments designed to keep valued employees from quitting, to people in its financial products unit, based in Wilton, Connecticut.
AIG chairman Edward Liddy has urged any executive who received more than $100,000 in bonus payments to return at least half.
He told a House subcommittee last week that some of the executives have "already stepped forward and returned 100 percent."
AIG has argued that retention bonuses are crucial to pulling the company out of its crisis.
Without the bonuses, the company says, top employees who best understand AIG's business would leave.
"We think $165 million could be used in a more appropriate way to keep people in their homes, create more jobs and health care," said protester Emeline Bravo-Blackport, a gardener.
The company, in response to the protests, said all its employees were "working very hard to pay back the government and help the U.S. economy recover."
"The people working at AIG today are part of the solution, not part of the problem," company spokeswoman Christina Pretto said in an e-mailed statement.
The group also protested at the office of AIG's financial products division in Wilton, where they waved signs and chanted, "Money for the needy, not for the greedy!"
There were no arrests.
Bernstein spoke on ABC television's "This Week." Goolsbee appeared on CBS' "Face the Nation." Gregg appeared on CNN's "State of the Union."
Source: TheStar
EPF aims to recover foreign investments when Dow hits 9,000
By YAP LENG KUEN
THE Employees Provident Fund (EPF), the country’s largest investment fund, is targeting to break even on its overseas investments possibly by next year when it can write back the bulk of its provisions.
“The Dow Jones was 14,000 at its highest. Today, it is around 7,000. We expect to recover the bulk of our investments when the Dow Jones goes to 9,000,” said EPF CEO Datuk Azlan Zainol.
The EPF has, so far, invested RM16bil overseas on a staggered basis in the five major financial markets – the US, Britain, Australia, Singapore and Japan.
However, he expects the markets to possibly recover only next year. Yields for Malaysian Government Securities (MGS) have also come off. In 2009, about RM16bil to RM17bil of MGS will mature and be replaced at today’s rate.
Last year, in July-August, it was possible to get 4%-5% for 10-year money, but that has dropped to 3.5%. Companies are also scaling back on dividends.
This year, he said, would continue to be difficult and the fund hopes to be able to maintain its dividend payment of between 4% and 4.5%. “Our policy is to give out everything we earn in the form of dividends. We do not have any reserves,’’ he said.
As far as gross income is concerned, the EPF, which manages RM340bil of funds, performed better than 2007 – gross income was RM19.96bil compared with RM18.24bil.
The big increase is in provisions which was RM515mil in 2007 compared with RM4.69bil last year.
Out of that amount, about RM3bil is provided for overseas investments. “Our policy is to provide in full for every diminution in value in our investments overseas,’’ Azlan said in response to queries from StarBiz.
In Malaysia, if there is a stock with more than 50% loss, the EPF will provide for 25% of it, spread over a four-year period.
“We are more conservative abroad because that is everybody’s market ... anything can happen. Locally, we roughly know (the local conditions),’’ said Azlan.
He expressed disappointment at some of suggestions posted on the blogs. “There is a blog that says the RM4.6bil provision that we made was because we lent to ValueCap Sdn Bhd. That is a gross accusation ... very, very unfair. That is not the truth,’’ he said.
Last year, the EPF had provided a RM5bil loan to government-controlled ValueCap which was set up to undertake investments on the stock exchange.
“As far as our investments are concerned, we are strong internally. What happens outside is a global issue. Our risk management and people are in place. There will be no major changes this year or the next,’’ he said.
In terms of EPF’s asset allocation, it is based on advice from its consultants and its proportion of investments in equity to fixed income is, according to Azlan, a proven formula.
Currently, Azlan as the CEO, assumes direct oversight of the fund’s investments. He is looking for a new head of investments who would probably be an outsider. The former deputy chief executive of investments, Johari Abdul Muid, has moved on to head the strategic planning unit.
“Johari will be responsible for looking into the second phase of transformation for the EPF,’’ said Azlan. The division also looks into retirement benefits and pension fund reforms in the country.
“The retirement money for Malaysians will not be enough. It has been three weeks since he is at the new position and he has done a very good job,’’ Azlan said in response to queries from StarBiz regarding Johari’s move to strategic planning.
Insiders added that it was part of a reorganisation to strengthen certain divisions that also saw new heads for property, withdrawals and call centre.
The dividend of 5.8% for 2007 has come down to 4.5% for last year.
Due to the large provision made, net income has slipped from RM16.87bil in 2007 to RM14.3bil last year. Costs have also gone up – to pay 1% dividend cost RM2.89bil in 2007 compared with RM3.18bil currently.
Gross income from investments in MGS and equivalents was higher by 5% at RM5.75bil last year. Investments in private debt securities and loans yielded a higher gross income of RM5.59bil or 13%.
With the lowering of fixed deposit rates, gross income from the money market went down by 25% to RM694mil.
Gross income from external managers for both domestic and global equities dropped by 43% to RM767mil and by 254% to a loss of RM194mil respectively. External managers were more prepared to cut loss.
However, income from internal managers showed an increase of 33% to RM6.27bil and 123% to RM439mil respectively.
The EPF is heavily invested in local banks with stakes ranging from 13.6% (Malayan Banking Bhd) to 2.8% (Affin Holdings Bhd).
“In Malaysia, big caps like Sime Darby, IOI Corp and Public Bank have all experienced huge drops in market cap. Tell me, how do we pay 7% or 8% dividend?’’ he asked.
THE Employees Provident Fund (EPF), the country’s largest investment fund, is targeting to break even on its overseas investments possibly by next year when it can write back the bulk of its provisions.
“The Dow Jones was 14,000 at its highest. Today, it is around 7,000. We expect to recover the bulk of our investments when the Dow Jones goes to 9,000,” said EPF CEO Datuk Azlan Zainol.
The EPF has, so far, invested RM16bil overseas on a staggered basis in the five major financial markets – the US, Britain, Australia, Singapore and Japan.
However, he expects the markets to possibly recover only next year. Yields for Malaysian Government Securities (MGS) have also come off. In 2009, about RM16bil to RM17bil of MGS will mature and be replaced at today’s rate.
Last year, in July-August, it was possible to get 4%-5% for 10-year money, but that has dropped to 3.5%. Companies are also scaling back on dividends.
This year, he said, would continue to be difficult and the fund hopes to be able to maintain its dividend payment of between 4% and 4.5%. “Our policy is to give out everything we earn in the form of dividends. We do not have any reserves,’’ he said.
As far as gross income is concerned, the EPF, which manages RM340bil of funds, performed better than 2007 – gross income was RM19.96bil compared with RM18.24bil.
The big increase is in provisions which was RM515mil in 2007 compared with RM4.69bil last year.
Out of that amount, about RM3bil is provided for overseas investments. “Our policy is to provide in full for every diminution in value in our investments overseas,’’ Azlan said in response to queries from StarBiz.
In Malaysia, if there is a stock with more than 50% loss, the EPF will provide for 25% of it, spread over a four-year period.
“We are more conservative abroad because that is everybody’s market ... anything can happen. Locally, we roughly know (the local conditions),’’ said Azlan.
He expressed disappointment at some of suggestions posted on the blogs. “There is a blog that says the RM4.6bil provision that we made was because we lent to ValueCap Sdn Bhd. That is a gross accusation ... very, very unfair. That is not the truth,’’ he said.
Last year, the EPF had provided a RM5bil loan to government-controlled ValueCap which was set up to undertake investments on the stock exchange.
“As far as our investments are concerned, we are strong internally. What happens outside is a global issue. Our risk management and people are in place. There will be no major changes this year or the next,’’ he said.
In terms of EPF’s asset allocation, it is based on advice from its consultants and its proportion of investments in equity to fixed income is, according to Azlan, a proven formula.
Currently, Azlan as the CEO, assumes direct oversight of the fund’s investments. He is looking for a new head of investments who would probably be an outsider. The former deputy chief executive of investments, Johari Abdul Muid, has moved on to head the strategic planning unit.
“Johari will be responsible for looking into the second phase of transformation for the EPF,’’ said Azlan. The division also looks into retirement benefits and pension fund reforms in the country.
“The retirement money for Malaysians will not be enough. It has been three weeks since he is at the new position and he has done a very good job,’’ Azlan said in response to queries from StarBiz regarding Johari’s move to strategic planning.
Insiders added that it was part of a reorganisation to strengthen certain divisions that also saw new heads for property, withdrawals and call centre.
The dividend of 5.8% for 2007 has come down to 4.5% for last year.
Due to the large provision made, net income has slipped from RM16.87bil in 2007 to RM14.3bil last year. Costs have also gone up – to pay 1% dividend cost RM2.89bil in 2007 compared with RM3.18bil currently.
Gross income from investments in MGS and equivalents was higher by 5% at RM5.75bil last year. Investments in private debt securities and loans yielded a higher gross income of RM5.59bil or 13%.
With the lowering of fixed deposit rates, gross income from the money market went down by 25% to RM694mil.
Gross income from external managers for both domestic and global equities dropped by 43% to RM767mil and by 254% to a loss of RM194mil respectively. External managers were more prepared to cut loss.
However, income from internal managers showed an increase of 33% to RM6.27bil and 123% to RM439mil respectively.
The EPF is heavily invested in local banks with stakes ranging from 13.6% (Malayan Banking Bhd) to 2.8% (Affin Holdings Bhd).
“In Malaysia, big caps like Sime Darby, IOI Corp and Public Bank have all experienced huge drops in market cap. Tell me, how do we pay 7% or 8% dividend?’’ he asked.
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