The man who's always on the bus

The article was first published on BBC News on 2 April 2015.

Spending all your nights sleeping on buses seems a grim fate. But that's the existence some people endure, writes Damian Zane.

Heathrow airport is pretty empty at 2am. One of the few people around is a man waiting for a bus.

It's part of his nightly ritual as he seeks shelter on London's network of night buses.

This is Ahmed, not his real name, a 44-year-old failed asylum seeker from India. He's wrapped in a large cream, canvas coat, with a thick brush of grey hair combed to one side.

Ahmed starts his journey at about 11pm in Leicester Square, in the heart of tourist London, packed full of people throughout most of the night.

It's a perfect place to remain invisible.

But Ahmed's typical nightly route starts with the number 24 to Hampstead Heath. Then he gets off, and gets the bus straight back where he came."With all these people going to the pubs and clubs, you can stay here until four o'clock in the morning," he says.

By the time he reaches central London again, the night buses have started and he can pick one of the longest routes to allow for the most rest.

"Sometimes I think about ending my life," he says, while contemplating the possibility of being arrested and forced to return to India.

Ahmed is a Muslim who grew up on a farm in rural Gujarat. Fearing for his life in the communal riots there in 2002, he fled to London. During an earlier bout of violence he'd witnessed his uncle being stabbed to death.

Traumatised by that experience and concerned that he could be targeted, he was persuaded by his parents to leave and find a better life outside India.

"They said 'you should go, don't worry about us'. That day was a very heavy day for me because I [was] leaving my parents alone," he says.

With a visitor's visa in his passport he flew into Heathrow and applied for asylum. It was rejected. India is considered to be a generally safe country, and certainly big enough for the possibility of restarting a life away from Gujarat.

Ahmed's appeal was also refused and he was told to return to India. But instead he chose to silently drop out of the system, fearing the consequences of returning home.

Not being allowed to work, he had no income and soon began sleeping rough - in doorways and behind bins, occasionally a bed in a shelter. Eventually he heard about the bus option, and has since spent much of the past three-and-a-half years sleeping on night buses.

And during that time, he's picked up certain techniques to remain undetected.

But Ahmed has also learned other methods to improve his chances of a good sleep.

He rushes to the front of the queue, he says, because there are others like him and everyone clamours for the seats on the lower deck, above the engine at the back, where it's warmest.

Ahmed says it's easy to spot others in a similar situation. Many are dressed in jeans and layers of hooded sweatshirts to keep out the cold, often avoiding eye contact in an effort not to be noticed.

At one stop, he points out migrants who he's travelled on the buses with before. It's a fleeting glimpse of some sort of camaraderie between these night travellers, but they all have their own individual struggles to contend with, which can hamper the development of strong friendships.

Ahmed is one of thousands of failed asylum seekers, as well as people awaiting the outcome of appeals, drifting through London, often unrealistically hoping their circumstances will suddenly change.

No accurate count of their numbers exists. It's inherently difficult to count people who have dropped off the radar. A report last year said that the Home Office is unaware how many of the 175,000 people who have no right to be in the UK still remain.

On the bus, Ahmed grabs some rest whenever he can.

He says he has a recurring dream. "It's like somebody's after me, they're going to hit me or stab me." Ahmed says that some people in the same situation can be hostile, pushing and shouting at him.

But his constant fear is of being discovered by authorities. So he adopts a common survival strategy - never cause trouble and never be where trouble is happening.

On the busy Friday and Saturday night buses, things can get rowdy, he says, making it difficult to sleep. But if ever that rowdiness escalates into violence, Ahmed is off at the next stop, keen to avoid being there if police are called.

He's not entirely alone in his struggle to survive in London. A mosaic of organisations exists in the city to help migrants and asylum seekers. They can provide piecemeal help in the form of small cash hand-outs, legal advice, a hot meal and a shower.

Three times a week Ahmed visits a centre in east London where he can wash himself and his clothes. He also stores two plastic bags holding his possessions there. At another of these charities, Ahmed cooks in return for travel money to ride his buses. After the meal, Ahmed plays table tennis and Scrabble with other migrants.

A free meal and the chance of companionship is a big draw.

"I love cooking, I'm happy if the people are eating and bless me," he says. "It means more to me than getting my papers to stay. It's by people's blessing that things will get sorted out."

But these moments of pleasure and purpose are just short punctuations in long stretches of loneliness. And once the centre closes for the day Ahmed is back on the buses.

"Last night my leg was paining me, my whole body was aching, and now the weather's getting cold," he says. "Two winters I passed on the buses and it was quite difficult. It's very difficult to survive in the winter time."

We board the night bus to Heathrow Airport. At 80 minutes, it's one of the longest routes on the network.

But arriving at an airport raises the nagging question about what is so wrong with returning to India. In the UK he has no job, no place to live and no security. It is hard to imagine what could be worse than this.

Yet Ahmed is adamant. "I can't go. Back home I have a more dangerous situation and persecution. So I'm not ready to go back to India.

"If my situation is getting worse then there may be no alternative for me [but to kill myself]. I always pray that I never get caught and sent back to India."

But how much longer can he continue?

Another couple of years, Ahmed says. He clings to the hope that once he's been in the UK for 12 years he'll be allowed to stay officially. But that optimism is not backed up by the law.

Such a provision - after 14 years, not 12 - did exist until 2012. People living in the UK - either legally or illegally - for that time could then apply for leave to remain. That period has now been lengthened to 20 years.

And unless Ahmed decides to return to India, or gets caught, that means many more hours of waiting, and many more night buses.

Enough with the comics, give full list of GST-free items, says Rafidah

BY ANISAH SHUKRY

Published: 31 March 2015 7:00 AM

The article was first published on The Malaysian Insider.

Putrajaya must change its current approach of educating the public on the goods and services tax (GST) by publishing immediately a list of tax-exempted items in every newspaper in the country, former minister Tan Sri Rafidah Aziz said.

The outspoken former international trade and industry minister said a clear list would help consumers to be better prepared for the new tax which takes effect tomorrow.

She said Putrajaya’s reliance on the use of cartoons, billboards and technical jargon such as "zero-rated" for the past year to explain GST has left Malaysian consumers, including herself, more confused over the new tax system.

"I personally think that right now, we should have a complete list of the categories that are exempted, so the public will know which (items) won’t be taxed.

"It should be made available in all the newspapers, in all languages, and it should not be technical,” Rafidah told The Malaysian Insider.

"Our problem is that the explanation so far has not been clear. The government has been using different sources or different approaches, and most of them have been very technical.

"For instance, who understands what ‘zero-rated’ means? Why can’t they just use the phrase ‘tak kena GST’ or ‘no GST’. That’s much simpler and easier to remember.”

She said it was also important that Putrajaya first cleared the air over which items would not be taxed, so that consumers would not rush to stores and hoard goods unnecessarily in anticipation of the GST.

Rafidah said the newspaper pull-out would also help consumers identify traders who raise prices on items that were not affected by the GST.

"Let’s say on April 1, I read the newspaper and I see that soap will not be taxed. Then I go to the supermarket and see they are charging me 6% for it. Thanks to the pull-out, I know they are cheating me and I can report this.

"Forget about the various codes, the technical jargon and whatnot. All that is irrelevant,” said Rafidah.

She added that Putrajaya could pay for the newspaper pull-out as the cost involved would be far less than erecting large billboards across the country.

"Some time ago, there was a billboard near my house that said education would be exempted from GST. It even had a cartoon drawing on it. I thought, what does that mean? Are university fees or tuition fees exempted from GST? What about books or computers or school-related tools?

"Instead of spending money on all those billboards, by this time you could’ve gotten a complete publication on all the items that are not taxed,” said Rafidah.

She added that a separate exercise should be done for traders so that they could calculate how the GST would affect them, and urged the government to hold meetings with associations.

"Right now, there appears to be no coordinated effort. That’s the only problem. I have no quarrels with the tax itself. It is a good move to rationalise taxes. But people are not familiar with it; some are taking advantage of it, and that causes confusion and hoarding.” she added.

The GST jingle sung by customs officers which was mocked online by Malaysians. – The Malaysian Insider pic, March 31, 2015.One of Putrajaya's efforts to educate the public on GST through a music video recently received heavy criticism from Malaysians after went viral on the internet.

The video, purportedly created by the Customs Department, hailed the virtues of implementing GST, but was panned by critics as "sad", "cheesy" and "reminiscent of the 1970s".

In the meantime, to ease the transition period, the Domestic Trade, Cooperatives and Consumerism Ministry has set up a round-the-clock operations room to monitor prices after the GST kicks off.

Located at Precinct 2 in Putrajaya, the operations room would also take complaints and reports from the public on GST matters.

Race-based parties growing more irrelevant, survey shows

BY ANISAH SHUKRY | Published: 16 March 2015 

The article was first published on The Malaysian Insider.

Malaysian voters overwhelmingly want political parties which take care of all Malaysians, rather than ones that fight for just their own race and religion, a survey has shown, even as ruling parties Umno, MIC and MCA continue to rely on race-based politics to drum up support.

The survey, commissioned by The Malaysian Insider, found that the racial rhetoric these parties thrive on is not consistent with what Malaysians want.

Of all the respondents polled, 76.9% said they preferred a party that was inclusive over one that catered to just their community.

This preference cuts across race, age and the political divide, the survey carried out by independent pollster Merdeka Center found.
In terms of ethnicity, 67.5% of Malays, 91.4% Chinese and 89.2% Indians polled said they preferred a party that takes care of all Malaysians.

Only 27.8% Malays answered otherwise, despite the rise of vocal Malay/Muslim pressure groups such as Perkasa and Isma, which claim to represent thousands of members and are demanding that Umno to do more to protect the Malays.

“What Barisan Nasional stands for – race-based politics – is growing increasingly out of sync among the electorate. Even among the Malays. It’s only the really hardcore who want race-based politics,” Ibrahim Suffian, the director of Merdeka Center, told The Malaysian Insider.

And despite Prime Minister and Umno president Datuk Seri Najib Razak’s increasingly right-leaning stance, 73.4% of Barisan Nasional supporters who were surveyed said they wanted a party which takes care of all races.

Meanwhile, 77% of respondents who were still undecided about which party to support said a party that caters to all races could represent them during voting time.

Most Malaysians also said the most important quality they looked for in a candidate during elections was one with good relationships with all ethnic groups.

“It is clear from the survey that Barisan Nasional is running behind and that it’s playing catch up with the public, who are open to less race-based parties and want ones that cater for all Malaysians,” said Ibrahim.

“And you have a big chunk not affiliated with either side, who are looking at what the politicians can deliver. These Malaysians are no longer dependent on the mainstream media, they can make up their own minds.”

However, Ibrahim said this did not necessarily spell the end of Barisan Nasional, because many Malaysians who were unable to sit well with the race-based politics were willing to overlook it, as long as the ruling coalition continued to deliver.

“Their supporters think, ‘yes, I don’t agree with the politics of BN, but it puts food on the table, it gives me jobs, and it prevents the other guys from taking over’. So you’ve got people still voting for them,” said Ibrahim.

In a testament to the 52% of Malaysians who voted for Pakatan Rakyat during the 2013 general election, the survey revealed that when voting, most Malaysians (63.2%) regardless of race looked for a party leadership that promoted change or reform, as opposed to one that preserved the status quo (25.6%).

Interestingly, supporters of the incumbent, BN, were split on the issue, with 46.8% saying they wanted a party leadership that espoused change, and 42.2% saying otherwise.

Party leadership is the main consideration most Malaysians (45.1%) take into account when voting, the survey showed, while only 17.3% and 15% said the party or candidate being fielded in their area, respectively, was their number one concern.

Change and reform had been among Najib’s buzzwords when he took on the Umno presidency in 2009, but the prime minister has had to dial back on his reforms – most notably his promise to repeal the Sedition Act 1948 – following pressure from within his own party.

The survey involved 1,008 respondents of voting age, who were interviewed by telephone from January 21 to 30 and chosen through the random stratified sampling method along the lines of ethnicity, gender, age and parliamentary constituencies.

All parliamentary constituencies were surveyed and the selection of the respondents is proportional with respect to the population.

EPF says 80% of workers have savings below poverty line as they turn 55

BY SHERIDAN MAHAVERA
Published: 13 March 2015 8:23 AM

Malaysian workers during morning rush hour on their way to work. EFP says most Malaysians have not enough savings in their pensions fund as they reach 55, forcing many people to work into their 70s, reflecting latest global trends. – The Malaysian Insider file pic, March 13, 2015.
Malaysian workers during morning rush hour on their way to work. EFP says most Malaysians have not enough savings in their pensions fund as they reach 55, forcing many people to work into their 70s, reflecting latest global trends. – The Malaysian Insider file pic, March 13, 2015.
Nearly 80% of workers who will turn 55 this year will not have enough savings in their Employees Provident Fund (EPF) to live above the poverty line, according to figures released by the fund’s chief executive officer.

Datuk Shahril Ridza Ridzuan said for the next 20 years, the workers would not have enough in total EPF savings to enable them to live on RM800 a month, which is close to Malaysia’s average poverty line income of RM830.

This is because most of them had low wages when they started contributing to the fund in 1980s, and continued earning relatively low salaries till they turned 55, said Shahril, who did not provide a number for this batch of retirees.

The revelation shines the spotlight on the problem of low incomes among a majority of Malaysian workers, even as Putrajaya said it aims to make Malaysia a high income nation in five years’ time.
According to Shahril, more than 75% of its 14 million EPF contributors earn less than RM2,000 a month. About 15% earn between RM2,000 and RM5,000 a month, while those earning more than RM5,000 are in the top 10%.

The EPF has set RM196,800 as a savings threshold that would allow a contributor to spend at least RM800 a month for the next 20 years.

The threshold is revised every three years to take into account inflation.

Only about 20% of its contributors who turn 55 this year are expected to have RM196,800 in total savings. That percentage is likely to stay about the same in the coming years, said Shahril.

“Historically, we have a low wage environment, so that percentage has inched up only a little.

“This is why we tell contributors not to take out their savings till they are 60, when they really retire.

“That extra five years can earn them an extra 40% through compound interest,” Shahril (pic, right) said when met after a talk organised by the Chevening Alumni Association in Kuala Lumpur last night.

These figures, he said, reflect the new reality of working life in Malaysia, as people will have to work beyond 55 in order to save enough to live out the rest of their lives.

“This is the trend in developed countries and we are getting there. The reality is that you cannot retire and enjoy yourself at 55 any longer.”

That age was set in the 1950s and has not been changed to take into account longer life expectancies, he said, adding that these days, people expect to live through their 70s.

This trend is compounded by the fact that Malaysia is a rapidly ageing nation. In 2030, 17% of the population will be aged above 65, he said. In 2040, people aged 65 will outnumber younger individuals.

“So we need policies to deal with this, such as financial literacy training so that young people are aware of the need to save for retirement and how to integrate old workers into the market.

“These are issues that advanced economies have to deal with and we are getting there,” said Shahril. - March 13, 2015.

- The article was first published on http://www.themalaysianinsider.com/malaysia/article/epf-says-80-of-workers-have-savings-below-poverty-line-as-they-turn-55#sthash.rwsMYIjt.dpuf

A daunting year for Malaysia and Indonesia

By Afiq Isa / The Edge Malaysia   | February 3, 2015 : 2:00 PM

IT is a testing time for Malaysia and Indonesia, two of Southeast Asia’s economic powerhouses. Amid a worsening outlook for the world economy, a half-decade of prosperity slowed down last year for the two countries, which are particularly exposed to volatile commodity prices and the flight of foreign funds accustomed to high yields.

However, at a media briefing on the sidelines of Credit Suisse’s 4th annual macro conference and 6th annual Asean conference earlier this month, its heads of research from Malaysia and Indonesia were sanguine about the prospects for the two neighbours and optimistic that important changes could be instituted.

Jahanzeb Naseer, Credit Suisse’s head of research for Indonesia, noted that the republic will be grappling with a multitude of institutional and political reforms and Malaysia with economic and fiscal reforms.

He said President Joko Widodo, or Jokowi as he is popularly known, has proved his reformist credentials by making and implementing tough decisions.

“For example, Jokowi chose to cut fuel subsidies even when crude oil prices were at US$80 per barrel and he changed the board of (state-owned oil company) Pertamina, which not many had expected. That’s a sign of his commitment to executing reforms. Over the past 15 years, none of the previous governments touched this because it was a very difficult thing to do.”

To encourage growth, Jokowi is redirecting the close to US$30 billion (RM108 billion) in savings from the fuel subsidy cut to infrastructure development. New land reforms are expected to be announced.

“After US$30 billion in savings following the fuel subsidy cut, spending it to boost infrastructure will be challenging as Jokowi now needs to cope with land reforms and ensure ease of investment,” observed Jahanzeb.

According to him, new land reforms are expected to be announced by the end of this month, which would smooth the way for land acquisitions that are dedicated to infrastructure projects, such as highways.

“However, this will be Jokowi’s next big challenge as he now has to deal with various departments and stakeholders to make it happen. This is more difficult than a single policy decision.”

It is worth noting that last Tuesday, the Indonesian Parliament voted unanimously to reinstate direct elections that were scrapped last October. This means direct elections will be held for mayors, regents and governors.

Malaysia faces a different set of challenges, said Credit Suisse’s head of equity research Tan Ting Min, including dealing with the reality of low oil prices and the economic ramifications for the country going forward.

“Malaysia was the worst-performing market in Asean last year partly due to the weak crude oil prices and ringgit, which continued to decline at the start of 2015. But every cloud has a silver lining: the second half of this year should be better for the equity market as all the negative elements would have been factored in,” she pointed out.

Tan highlighted the implementation of the Goods and Services Tax (GST) as a key theme this year. She said she sees a spike in consumption just before April and a slump thereafter before gradually normalising.

“It would take about 6 to 12 months for domestic consumption to normalise after factoring in GST. There will also be problems when it comes to the tax’s implementation and it may take up to a year to sort everything out. Even the highly efficient Singaporeans had problems [with their implementation] for a year.”

Both heads of research agreed that Indonesia and Malaysia’s exposure to “hot money” or foreign capital outflow remains a looming problem.

Jahanzeb pointed out that foreign holding of Indonesia’s sovereign debt is at an all-time high.

“The risk of hot money outflow is on the bond side instead of equities, similar to what Malaysia is currently facing. If people worry about a scenario where the interest rate [for the US dollar] is headed upwards, the outflow from bonds will put more pressure on the local currency, which in turn will negatively affect the current account balance,” he said.

The external pressures notwithstanding, Credit Suisse remains optimistic about Indonesia’s growth prospects but not so much about Malaysia’s. In a Jan 20 note, Tan explains that the group’s 2015 gross domestic product (GDP) forecast of 4.8% for Malaysia is below consensus expectations.

Last Tuesday, Prime Minister Datuk Seri Najib Razak announced revisions to Budget 2015 and lowered the country’s GDP growth target to between 4.5% and 5.5% this year from between 5% and 6%.

Economic growth in Indonesia, on the other hand, could surprise on the upside.

“I think the expectation of 5% GDP growth right now is probably underestimated. The investment needed for infrastructure over the next five years is US$300 billion. Instead of a 43% year-on-year increase in infrastructure expenditure, we may be looking at a 200% increase, thanks to the reduced fuel subsidies,” Jahanzeb said.

Indonesia will remain a top investment destination in the region if reforms are speedily executed, he added.

Both experts concur that corporate earnings growth in Indonesia will outpace Malaysia’s this year due to the respective economic factors.

While Tan said earnings growth for Malaysia will be underwhelming at below 8%, Jahanzeb believes that the focus on infrastructure growth and the corresponding investment inflow will result in around 12% to 13% earnings growth for Indonesia.

“With the upcoming GST and expected weak economic and earnings numbers, I think the first half of the year will be quite tricky for Malaysia,” Tan concluded.

Anwar’s UM talk fiasco stirred academic freedom push, say academics

Universiti Malaya might have blacked out and locked down its campus to prevent Datuk Seri Anwar Ibrahim from giving a talk this week but the students who defied the ban showed that they cherished the principle of academic freedom and wanted to reclaim their rights to it, say academics.

That sums up the good and bad that came out of the fiasco at the university where students broke through a lockdown and blackout to enable Anwar to enter the campus and address them.

The bad part was how UM authorities bungled the incident, the academics told The Malaysian Insider.

The administrators’ actions have tarred the university’s prestige and ruined its long tradition of being one of Malaysia’s most intellectually vibrant institutions.

The good that came out of the incident was how UM students stood up to reclaim their rights to host a learning experience, which was UM’s responsibility to provide in the first place.

The student’s actions also revealed an awakening of sorts by a section of society that has often been treated as school children by university administrators, when in reality they go to university to become adults.

Prof Zaharom Nain of University of Nottingham's Malaysia campus said banning the event was bad enough from the point of view of nurturing academic freedom.

But the joke was that the wide publicity the event received made it seem as if UM administrators were secretly Anwar fans.

“If they had allowed the event to proceed it would have proceeded peacefully and not have attracted that much interest,” said Zaharom who is Professor of Media and Communication Studies.

Proof of this, Zaharom said, was in interviews The Malaysian Insider did with students who turned up for the talk.

Many students said they were not at all interested in the talk until UM administrators started closing the gates to the campus and shutting off the electricity.

The turnout, Zaharom said, was less reflective of Anwar’s appeal and more of the students’ reaction to the university’s mishandling of the event.

“It’s reflective of youths who want to take back their rights. It’s about them saying enough is enough,” said Zaharom.

UM administrators had tried to bar Anwar from attending a talk held on Monday, titled "40 years: From UM to prison", on the eve of his Federal Court appeal against his conviction of sodomising a former aide.

The university’s authorities had allowed staff to leave at 4pm and started a lockdown in order to stop Anwar’s talk.

After university staff had left the campus grounds, UM security personnel closed the Kuala Lumpur entrance to all vehicles and redirected incoming and outgoing traffic to the Petaling Jaya entrance.

However, determined UM students and supporters ensured that Anwar was able to enter his alma mater by forcing open the university's main gate at its Kuala Lumpur/Bangsar entrance and marching onto the campus grounds.

When Anwar arrived outside Dewan Tunku Canselor, the area was pitch black as the university administration's claims of electrical issues appeared to have some basis.

Anwar then gave his speech under a street light nearby.

Assoc Prof Dr Andrew Aeria of Universiti Malaysia Sarawak said the UM authorities’ actions showed them for what they truly were despite the university’s image as a premier institution.

“It showed that the university is run by grovelling administrators who prioritise kow-towing to authority instead of committing to international recognised standards of academic quality,” said Aeria, a political economist.

It was also regrettable that UM’s current administrators had forgotten the institution’s glorious history of encouraging debates from all political spectrums, said Prof Datuk Abdul Rahman Embong of Universiti Kebangsaan Malaysia.

“The fundamental principle of a university is that it is a marketplace of ideas for students, scholars and the public. This is how it nurtures future leaders,” said Abdul Rahman who is Principal Fellow at the Institute of Malaysian and International Studies (IKMAS).

Abdul Rahman said unlike the UM administrators who did not live up to the institution’s tradition, the students reclaimed their movement’s past glory.

Historically, the UM student union was famous for being fiercely independent and influential in the country’s political landscape in the 1950s and 1960s.

Anwar himself was a famous student leader and the university has produced many of the nation’s future political leaders as well as world-renown scholars.

Aeria said the students’ actions were also an expression of their dissatisfaction with the quality of education that has been dished out to them by the university.

“The students are upset because they are patronised as children. They take out loans to pay for their education yet they are treated like children. It is insulting.”

The president of UM Undergraduates' Association (PMUM), Fahmi Zainol, who was among hundreds who stormed the university's main gates on Monday night to allow Anwar to enter his alma mater and address a crowd of about 2,000, said he was ready to face the consequences of his actions.

He said the programme was not just to support Anwar, but to send a message that students were fed-up with the various restrictions imposed on academic freedom.

"We are sick and tired of hearing all the complicated procedures constantly dredged up as an excuse to curb students' freedom," he said.

The students’ courage in taking on the university administration earned the praise of Negara-Ku co-chair and former Bar Council chairman Datuk Ambiga Sreenevasan who said she was amazed by the fighting spirit displayed by the students.

Describing them as the agent of change in the country, Ambiga said: "What we see now is change happening, now we are seeing our youth rising up against oppression."

And although there will be severe penalties for the students who organised the talk, Zaharom believes that their actions sent an important message to the university and other students.

“There students have stood up and said that they will not be led by the nose. That they wanted to be creative, critical and questioning citizens.”

The article was first published on The Malaysian Insider.

Putrajaya perlu ‘political will’ pulihkan MAS

Ditulis oleh: Datuk Nur Jazlan Mohamed

Akhirnya, pemilik Sistem Penerbangan Malaysia (MAS) iaitu kerajaan Malaysia melalui Khazanah Nasional mengumumkan 12 pelan tindakan bagi menyelamatkan ikon kebanggaan negara, Jumaat lalu, selepas dinantikan semua pihak bagi mengembalikan semula nyawa kepada syarikat penerbangan yang sedang nazak dan “berdarah” RM3 juta sehari.

Saya turut menantikan tindakan Khazanah Nasional yang dipimpin individu berpengaruh dan amat sinonim dengan pelan pemulihan MAS sejak ia mula diambil semula daripada tokoh perniagaan kontroversi, Tan Sri Tajuddin Ramli tetapi terus tidak mendatangkan sebarang hasil konkrit.

Selepas dua kali menulis mengenai MAS dalam ruangan saya dalam portal berita ini, bertajuk “Kerajaan, MAS dan industri penerbangan negara ‘sakit’” bahagian 1 dan 2 yang diterbitkan pada 6 Mac dan 1 April lalu, terus terang saya terpaksa akui tiada apa yang menarik mengenai pelan tindakan MAS itu. 

Selain terus menggunakan wang rakyat berjumlah RM6 bilion yang terpaksa dilabur bagi menyelamatkan “Wau” negara ini, penstrukturan MAS hanyalah bersifat penstrukturan kewangan atau lebih kepada membersihkan “balance sheet”.

Tetapi saya tersenyum juga memandangkan Khazanah bersetuju dengan artikel saya dalam portal berita ini, mengenai pentingnya Dasar Penerbangan Negara digubal bagi memastikan setiap syarikat penerbangan tempatan dapat beroperasi secara kompetitif.

Bagaimanapun, sedikit kecewa kerana tiada huraian mengenai Dasar Penerbangan Negara itu, yang sepatutnya diumumkan Menteri Pengangkutan atau Khazanah mahu menyimpan sedikit rahsia bagi mengejutkan semua orang.

Sesuatu yang sebenarnya langsung tidak perlu dilakukan bagi menyimpan rahsia menyelamatkan MAS atau syarikat pelaburan kerajaan itu perlu menunggu hasil khidmat konsultan asing berjuta ringgit yang dilantik seperti kebiasaan dilakukan.

Itulah yang selama ini, menjadi “kekuatan” Khazanah, melantik konsultan dengan belanja berjuta ringgit bagi menjalankan kerja mereka sedangkan, umum mengetahui betapa pengurusan tertinggi syarikat pelaburan berkenaan, memperoleh upah yang begitu lumayan sekali berbanding GLC lain.

Lebih memelikkan Khazanah memerlukan sehingga tiga tahun untuk menjalankan penstrukturan kewangan MAS tetapi langsung tidak menghuraikan mengenai model perniagaan baru syarikat berkenaan bagi meletakkan ia semula menjadi pemain utama dalam industri penerbangan di rantau ini.

Apabila Qantas Australia mengumumkan kerugian beberapa hari semula pengumuman Khazanah, ia seakan cuba memberitahu semua syarikat penerbangan dunia berhadapan dengan kemerosotan kewangan hingga mengakibatkan kerugian.

Namun di Malaysia, ia sesuatu yang amat berbeza memandangkan setiap kali MAS mengumumkan kerugian, setiap kali itulah syarikat tambang rendah negara, AirAsia mengumumkan keuntungan.

Malah, model perniagaan AirAsia kemudian seakan ditiru Malindo Air sekaligus terus memberikan tekanan kepada MAS hingga ada tanggapan Khazanah selaku pemilik MAS “buta” dengan apa yang sedang berlaku di AirAsia.

Bukan mahu memuji AirAsia tetapi siapa boleh menyangkal kemajuan dalam syarikat berkenaan yang beroperasi tidak sampai dua dekad tetapi kini mempunyai akses laluan domestik dan antarabangsa kepada lebih banyak negara berbanding MAS.

Atas sebab itu juga Khazanah dan kerajaan cuba untuk mewujudkan sinergi dengan AirAsia dan ia dilakukan pada Ogos 2011 melalui Kerangka Kerja Usaha Sama Komprehensif (CCF) bagi membolehkan MAS, AirAsia dan AirAsia X meneroka peluang bekerjasama dalam pelbagai bidang, bagi memanfaatkan kecekapan teras masing-masing dan mengoptimumkan kecekapan.

Sebagai sebahagian daripada CCF itu, Khazanah dan Tune Air menjalin perjanjian pertukaran saham bagi menjajarkan kepentingan pemegang saham utama MAS dan AirAsia, yang sekaligus akan mengukuhkan potensi kerjasama berkenaan dan majlis menandatangani CCF itu saksikan sendiri Perdana Menteri, Datuk Seri Najib Razak sebagai “endorsement” terhadap usaha berkenaan.

Namun seperti kata pepatah “harapkan panas hingga ke petang, rupanya hujan di tengah hari”, selepas lapan bulan dikecam semua pihak termasuk Ahli Parlimen BN dalam sidang Dewan Rakyat, MAS dan AirAsia membatalkan perjanjian berkenaan.

Dan lebih malang lagi, kedua-dua syarikat penerbangan itu, kemudiannya didenda Suruhanjaya Anti Persaingan (MyCC) pada September 2013 kerana CCF itu, mempunyai matlamat berkongsi pasaran domestik.

Ada yang menyatakan pada saya, denda yang dikenakan MyCC itu adalah sesuatu yang amat kelakar kerana bagaimana satu perjanjian yang dirangka sekelompok individu berkuasa dan berpengaruh di Malaysia sama ada dalam bidang perniagaan atau kerajaan, boleh dikenakan denda?

Adakah mereka ini, langsung tidak berfikir atau terlepas pandang mengenai matlamat CCF itu yang jelas melanggar undang-undang atau adakah mereka berasa mereka di atas undang-undang?

Justeru, satu lagi episod baru MAS dilakonkan sekali lagi melalui penstrukturan yang diumumkan dan dengan tiada langsung kerangka mengenai penstrukturan operasi MAS, sebenarnya, tidak banyak boleh dilakukan bagi memulihkan semula “Wau” negara  kembali ke zaman kegemilangannya pada tahun 80-an.

Malah jika diteliti pada semua pelan tindakan berkenaan, ia seakan sama seperti yang pernah cuba diusahakan Datuk Seri Idris Jala yang dipilih menjadi pengarah urusan MAS pada 2005.

Sebenarnya, MAS memerlukan penstrukturan operasi radikal dalam memastikan ia mampu bersaing dengan AirAsia khususnya, terutama sekali merebut semula cengkaman terhadap laluan domestik yang kini, dibolot syarikat penerbangan tambang murah berkenaan.

Pada masa sama ancaman MAS juga tidak hanya berkisar kepada AirAsia tetapi juga Dasar Langit Terbuka yang akan dilaksanakan pada 2015 yang membolehkan semua syarikat penerbangan asing bebas untuk keluar masuk penumpang ke negara ini.

Ketika MAS dikatakan mempunyai kelebihan sebagai “full service airline”, ia sebenarnya tidak lagi memberi sebarang keistimewaan kepada penumpang masa kini, yang lebih mementingkan harga tambang murah dan sanggup berkompromi terhadap faktor keselesaan.

Selain itu, armada pesawat MAS yang sudah berusia juga perlu diganti dengan segera kerana ia bukan sahaja merugikan daripada segi penyelenggaraan dan operasi tetapi juga imej MAS.

Semua perkara ini, tidak disentuh Khazanah dalam 12 pelan tindakannya, yang ada hanya mengurangkan pekerja dan usaha lain termasuk mewujudkan syarikat baru (NewCo) bagi mengambil alih semua yang dimiliki MAS termasuk liabiliti.

Ia sebenarnya amat “dejavu” untuk saya apabila membaca mengenai penubuhan NewCo ini, seakan sama seperti apa yang pernah dilakukan Khazanah melalui Penerbangan Malaysia Berhad (PMB) yang ditubuhkan pada 2002, sebagai salah satu usaha menstrukturkan MAS dan akhirnya mengakibatkan kerugian kepada kerajaan kira-kira RM3 bilion.

Jika kerajaan benar-benar ikhlas dalam memulihkan semula MAS, ia sepatutnya menggunakan peluang ini, bagi memastikan Dasar Penerbangan Negara yang bakal digubal benar-benar bersifat inklusif serta pragmatik.

Kita sudah tentu tidak mahu, apa yang akan dilakukan kerajaan bagi memulihkan semula MAS melalui Dasar Penerbangan Negara, bakal membantut dan menekan syarikat penerbangan tempatan lain daripada berkembang.

Ini adalah situasi tidak elok untuk imej Malaysia dalam iklim ekonomi dan perniagaan dunia kerana seharusnya, semua syarikat penerbangan tempatan diberikan peluang dan perlindungan sama rata, bukan terikat dengan emosi serta sentimen masa lalu seperti kata pepatah “jangan yang dikejar tidak dapat, yang dikendong berciciran” kerana apa yang penting adalah dasar ini, memberikan kebaikan kepada rakyat dengan laluan bertambah dan kos tambang yang rendah.

Apa yang berlaku pada MAS bukan sesuatu yang luar biasa atau misteri seperti dialami MH370, tetapi ia pernah terjadi kepada banyak syarikat penerbangan utama dunia seperti Japan Airlines dan British Airways.

Yang paling penting adalah “political will” daripada Putrajaya dalam memastikan MAS benar-benar mampu pulih seperti yang pernah dikecapinya.

Jika ramai yang memikirkan nasib 6,000 pekerja MAS yang bakal kehilangan pekerjaannya dalam penstrukturannya, bagaimana pula dengan nasib baki pekerjanya, yang terus tertanya-tanya apa sebenarnya masa depan mereka dan apa sebenarnya hala tuju MAS di tangan Khazanah.

Khazanah sudah membelanjakan dan kemudian rugi RM17 billion  dalam MAS sejak ia mengambil alih daripada Tan Sri Tajuddin dan kini, kerajaan bersetuju menyalurkan sekali lagi RM6 bilion dalam bentuk “pelaburan” dan apa yang digariskan Khazanah langsung tidak berkisar kepada penstrukturan operasi dan perniagaan.

Dan di sebalik segala kerugian yang dialami Khazanah terhadap MAS, ada suatu yang amat pelik dan menjadi tanda tanya apabila tiada siapa dalam Khazanah dipertanggungjawabkan atas segala kegagalan pelan-pelan penstrukturan sebelum ini, yang hanya disaksikan dalam episod MAS lalu, adalah pertukaran MD selaku pelakon utama silih berganti.

Jika ini nasihat kepada kerajaan melalui “punahsihat” mengenai MAS, sudah pasti tiga tahun lagi, kita tidak akan menyaksikan sebarang keistimewaan akan berlaku pada “Wau” negara ini.

Tidak mustahil tiga tahun lagi, ketika Pilihan Raya Umum (PRU) 14 semakin hampir, MAS akan terus mencatatkan kerugian dan percayalah, ia akan menjadi modal politik utama kepada pembangkang menghentam BN kerana terus gagal berbelanja dengan berhemah sehingga mengabaikan kepentingan rakyat secara keseluruhannya.

The article was first published on The Malaysian Insider.

Putrajaya salah strategi isu kenaikan tol Tambak Johor

Oleh: YB Datuk Nur Jazlan Mohamed

Dalam kemeriahan umat Islam menyambut Aidilfitri pada saat kenaikan harga barangan serta kos sara hidup yang semakin meningkat, rakyat Malaysia di kawasan Johor selatan dikejutkan dengan kenaikan tol di Tambak Johor lebih 400%, berkuatkuasa Jumaat lalu.

Kenaikan tol itu yang diumumkan Lembaga Lebuhraya Malaysia (LLM) dua hari sebelum Aidilfitri mengundang pelbagai reaksi segenap lapisan masyarakat di Johor khususnya di kawasan Johor selatan atau lebih tepat lagi Johor Baru.

Saya selaku ahli Parlimen Pulai mengeluarkan kenyataan media sebaik mendapat makluman mengenai kenaikan kadar tol berkenaan menuntut supaya kerajaan mengkaji semula kenaikan tol itu kerana ia jelas akan membebankan rakyat Malaysia yang bekerja di Singapura yang sebelum ini, sudah terjejas dengan kenaikan Permit Kemasukan Kenderaan (VEP) oleh Singapura.

Namun tanpa disangka, kenaikan tol di Tambak Johor dan Lebuhraya Penyuraian Timur (EDL) bertukar menjadi  isu perkauman kerana ia dilihat lebih terkesan kepada masyarakat Cina yang lebih ramai bekerja di Singapura berbanding kaum lain termasuk orang Melayu.
Sebagai ahli Parlimen untuk semua kaum, saya berpendapat keputusan kerajaan menaikkan kadar tol berkenaan tanpa mengadakan rundingan dengan pihak berkepentingan termasuk saya sendiri selaku ahli Parlimen amat tidak menggambarkan konsep 'rakyat didahulukan'.

Isu kenaikan kadar tol ini, jelas dipolitikkan begitu meluas di media sosial dengan pelbagai pihak mempunyai pandangan masing-masing termasuk memberikan gambaran ia adalah reaksi emosi kerajaan Malaysia terhadap kenaikan VEP Singapura. Malah, saya sendiri 'dihentam' bloggers pro BN yang menggambarkan kenyataan saya seperti ahli Parlimen dari Singapura serta tidak menyokong keputusan kerajaan menaikkan kadar tol berkenaan.

Memang benar, hujah beberapa pihak mengenai kesetiaan rakyat Malaysia yang memilih untuk menjadi Pemastautin Tetap (PR) Singapura dan memilih untuk terus tinggal di Johor serta memandu kenderaan negara seberang tambak berkenaan.

Tetapi selaku ahli Parlimen di kawasan Johor selatan, saya perlu bersikap adil dengan pengundi Parlimen Pulai yang bekerja di Singapura yang jelas terbeban serta terkesan dengan kenaikan kadar tol berkenaan.

Bagi mereka keputusan kerajaan itu langsung tidak adil serta tidak memahami keperitan mereka perlu berulang alik ke Singapura demi mencari rezeki yang kemudian dibawa balik semula ke Johor sekali gus meningkatkan ekonomi negeri. Mereka ini, tidak mempunyai pilihan kerana perlu bekerja di negara seberang Tambak berikutan kadar upah lebih tinggi serta peluang pekerjaan lebih baik yang tidak didapati di Johor.

Kenaikan kadar tol berkenaan yang kemudian akan disusuli dengan VEP oleh Malaysia tidak lama lagi, jelas memberikan kesan besar terhadap perbelanjaan seharian mereka dan mungkin menyebabkan mereka terpaksa mengurangkan perbelanjaan 'mewah' di Johor.

Ia akan mengakibatkan rantaian ekonomi Johor terganggu terutama sekali peniaga kedai makanan serta runcit yang amat bergantung kepada kuasa membeli rakyat Malaysia yang bekerja di Singapura.

Pada masa sama, saya juga tidak mahu tindakan kerajaan menaikkan kadar tol selain pengenalan VEP untuk kenderaan asing dilihat sebagai 'tit for tat' daripada Malaysia disebabkan tindakan Singapura.

Malah, tindakan membebankan sama ada daripada kerajaan Singapura dan Malaysia sudah pasti memberikan kesan besar kepada rakyat kedua-dua negara yang mempunyai pertalian kuat serta bergantung bukan saja daripada ekonomi malah juga sosial.

Berikutan tindakan kerajaan menaikkan kadar tol Jumaat lalu, Pihak Berkuasa Pengangkutan Darat (LAT) kemudian mengeluarkan kenyataan tidak menolak kemungkinan akan menaikkan juga kadar tol di Kompleks Kastam, Imigresen dan Kuarantin (CIQ) Woodlands.

Sampai bila sikap berbalas-balas seperti ini, akan berakhir?

Rakyat perlu dimaklumkan terlebih dulu mengenai kemungkinan berlaku kenaikan kadar tol bagi membolehkan mereka bersedia dan menyesuaikan diri terutama sekali daripada segi perbelanjaan.

Kini, apa yang dapat dilihat adalah tindakan kerajaan menaikkan kadar tol berkenaan bukan disebabkan dasar tetapi lebih kepada emosi selain timbul 1001 persoalan mengenai status EDL itu sendiri.

Ini kerana EDL pada asalnya, dibina sebuah syarikat swasta kemudian diambil alih kerajaan selepas wujud desakan masyarakat setempat supaya lebuh raya berkenaan dikecualikan tol, tetapi kini kerajaan mengumumkan pula kenaikan tol di Tambak Johor dengan alasan pengguna lalu lintas ke Singapura menikmati infrastruktur yang lebih baik.

Infrastruktur apakah yang dimaksudkan itu? Adakah ia EDL? Atau CIQ BSI? Di sinilah timbul pelbagai persoalan di kalangan rakyat Johor Baru yang semakin pelik dengan tindakan kerajaan dilihat cuba menyembunyikan sesuatu dan tidak mahu berterus terang mengenai alasan kenaikan kadar tol itu.

Sebab itu, selaku pengerusi Jawatankuasa Kira-Kira Wang Negara (PAC), saya mahu mengetahui status sebenar EDL ini, kerana pada asalnya ia bukan projek kerajaan dan tidak melalui tender kerajaan.

Jika kerajaan terus bertegas menaikkan kadar tol ini, pengecualian segera perlu diberikan kepada pengangkutan awam yang digunakan rakyat berpendapatan rendah untuk berulang alik dari Johor ke Singapura.

Disebabkan kurangnya sikap berhati-hati dalam menaikkan kadar tol ini, ia turut menyebabkan berlaku mogok bas awam yang tidak mahu membayar harga tol baru sekali gus menyusahkan rakyat jelata.

Tidak mustahil selepas ini, syarikat bas awam yang berulang dari Johor ke Singapura akan mengumumkan kenaikan harga tambang bagi menyerap kadar tol baru dan ia akan membebankan mereka yang berpendapatan rendah.

Dasar kerajaan seharusnya, melindungi kepentingan rakyat secara keseluruhan bukan tunduk kepada desakan politik kerana kerajaan perlu sedar mereka akan dinilai rakyat pada Pilihan Raya Umum (PRU).

Ketika ini, parti pembangkang khususnya, DAP dilihat menjadi pejuang kepada golongan yang terjejas akibat kenaikan kadar tol ini, dan ia sebenarnya, adalah petanda tidak baik kepada Barisan Nasional (BN) khususnya di kawasan Johor selatan.

Kita perlu sedar hakikat kawasan Johor selatan kini, mempunyai ramai pengundi masyarakat Cina yang bekerja di Singapura dan mereka sudah pasti mahu memilih parti yang memperjuangkan nasib mereka.

Sebab itu, kenaikan kadar tol ini, terus menjadi isu politik yang kemudian menjadi isu perkauman sekali gus akan memberikan imej tidak baik kepada BN dan Umno Johor kerana terus dilihat gagal membela nasib semua kaum secara inklusif seperti yang dilaungkan Datuk Seri Najib Razak selaku presiden Umno dan perdana menteri.

Jalan penyelesaian perlu diambil dengan segera dan campur tangan pantas Putrajaya amat perlu bagi menyelesaikan isu kenaikan kadar tol ini, kerana rakyat akar umbi tidak mahu menerima alasan lemah yang diberikan kerajaan.

Alasan kenaikan disebabkan infrastruktur yang lebih baik serta mengawal jumlah kenderaan masuk ke Johor amat tidak boleh diterima dan lemah menyebabkan ia mudah dipolitikkan.

Ini disebabkan walaupun mempunyai EDL dan CIQ baru, semua mengetahui mengenai kesesakan lalu lintas yang terus terpaksa dihadapi untuk memasuki Johor melalui Tambak Johor.

Selain itu, kerajaan juga perlu mempertimbangkan mengenai pertumbuhan Iskandar Malaysia dan adalah sesuatu yang memelikkan kerana tidak ada kenyataan daripada Pihak Berkuasa Iskandar Malaysia (Irda) mengenai kenaikan kadar tol ini, sama ada ia akan menjejaskan pelaburan dari Singapura ke wilayah ekonomi ini.

Justeru sudah pasti akan wujud kesan terhadap kenaikan kadar tol ini, terutama sekali rakyat Singapura yang berulang alik ke Johor sama ada yang menetap atau bekerja di Iskandar Malaysia.

Terus terang saya nyatakan rakyat Singapura yang masuk ke Johor Baru tidak akan merasai kesan kenaikan kadar tol ini, kerana menikmati tukaran mata wang yang tinggi selain perlu untuk keluar dari republik berkenaan.

Yang paling teruk terjejas adalah rakyat Malaysia yang bekerja di Singapura demi mencari rezeki lebih baik di negara berkenaan disebabkan kurangnya peluang pekerjaan di Johor itu sendiri.

Kerajaan sedar kejayaan Iskandar Malaysia amat bergantung kepada pelaburan dari Singapura dan atas sebab itu, saya dimaklumkan mengenai adanya 'arahan' kerajan Singapura kepada media negara itu, untuk tidak menghentam Iskandar Malaysia dan kepimpinan Najib.

'Endorsement' Singapura terhadap Iskandar Malaysia amat perlu dalam menarik pelabur asing ke wilayah pembangunan ekonomi ini, dan andai kata pelabur dan rakyat negara itu, sudah mula bercakap mengenai keburukan dan kelemahan Malaysia dan Johor khususnya, pertumbuhan Iskandar Malaysia pasti akan terjejas.

Atas sebab itu, suatu tindakan segera amat perlu diambil dalam menangani kenaikan kadar tol ini, kerana bagi saya selain ia melarat menjadi isu politik dan perkauman, masa depan Iskandar Malaysia juga perlu diambil kira.

Putrajaya perlu sedar mereka tidak seharusnya tunduk kepada desakan politik termasuk daripada Umno sendiri, dalam isu kenaikan kadar tol ini, yang menjadi keutamaan adalah rakyat yang sudah pasti bukan saja orang Melayu tetapi juga kaum lain.

Ingin saya tegaskan selaku ahli Parlimen Pulai yang terletak dalam kawasan Johor selatan, saya tidak bersetuju dengan kenaikan kadar tol ini, kerana implikasinya adalah penduduk Johor sendiri yang bekerja di Singapura terutama sekali pengundi dalam Parlimen Pulai.

Bagaimanapun, saya bukanlah mahu menolak terus kenaikan kadar tol ini, jika alasan menaikkan kadar tol ini disebabkan dasar berikutan inflasi selain ia tidak pernah dinaikkan sejak mula dilaksanakan.

Tetapi kenaikannya terlalu mendadak hingga kadarnya lebih tinggi daripada kadar inflasi sehingga timbul persepsi lebihan hasil tol berkenaan digunakan bagi menampung kos EDL.

Rakyat kini sudah cerdik dan perdana menteri sendiri menyatakan zaman kerajaan mengetahui segalanya sudah berakhir, jadi penjelasan telus perlu diberikan dan walaupun pahit, saya percaya rakyat boleh menerimanya bukan dengan alasan yang lemah seakan mahu membodohkan rakyat.

Tidak ada gunanya selepas ini, jika Iskandar Malaysia mempunyai segala macam kekayaan tetapi wakil rakyatnya terdiri daripada parti pembangkang seperti yang berlaku di Kuala Lumpur.

Jika Putrajaya tidak berhati-hati menangani kenaikan kadar tol ini, segala usaha Almarhum Tun Abdul Razak Hussein, perdana menteri Malaysia kedua untuk menguatkan perpaduan antara kaum di kawasan bandar selepas berlakunya tragedi hitam 13 Mei akan sia-sia kerana isu ini, sudah pasti bertukar menjadi isu perkauman di kawasan Johor selatan. – 4 Ogos, 2014.

How Italy became a submerging economy

An interesting article on The Edge.

#Special Report* How Italy became a submerging economy
via http://www.theedgemalaysia.com/business-news/298711-special-report-how-italy-became-a-submerging-economy.html

Sent from my iPhone

15% of population diabetic

The article was first published on Free Malaysia Today.

Reducing sugar subsidies will help bring down consumption, said Health Minister Dr S Subramanian

SEGAMAT: The government has been urged to reduce subsidy for sugar as a means to discourage people from using sugar in their food and drinks daily, thus reducing the danger of diabetes among Malaysians.

Health Minister Dr S. Subramaniam said a reduction in subsidy for sugar, in stages, can reduce the consumption of sugar in their daily meals.

“The number of diabetic patients in the country has increased to 2.6 million or 15 percent of the total population.

“This is partly due to lack of control in the intake of sugar,” he told reporters after opening a diabetes awareness campaign in the Segamat Parliamentary constituency at the Buloh Kasap Multi-purpose hall, here, yesterday.

He added that the figure (2.6 million) was not including about two million people who have not undergone medical checkup at government hospitals and clinics.

Dr Subramaniam said diabetic patients were also vulnerable to other diseases, including kidney ailments and eye sight.

He said based on statistics, there were 16,000 kidney patients in the waiting list for kidney transplant because there are only 40 to 50 organ donors a year.

Melaka Moving To Draw More Investments To Spur Economic Growth

Melaka Moving To Draw More Investments To Spur Economic Growth

By Mohd Iswandi Kasan Anuar

MELAKA, Aug 15 - Melaka, fondly called "The Venice of the East" by the Westerners, is working on ambitious investment plants to continue receiving investments from local and foreign investors, particularly in the automotive, pharmaceuticals and green technology sectors.

Chief Minister Datuk Idris Haron said the plan by the Honda company in Japan to increase its investments by three fold will have a huge impact on Melaka.

"When I visited the Honda plant in Japan, I was told that the plant will increase its production capacity. Honda's plan will directly or indirectly have a positive impact on its assembling plant in Alor Gajah," he told Bernama.

Idris said Melaka also has the potential to emerge as a "park" for the pharmaceutical industry for the southern region when Malaysian Biotechnology Corp Sdn Bhd developed a pharmaceutical park in Alor Gajah next year.

He said this project will gradually bring in RM1 billion investment.

"We've received a request from a Microsoft company which is looking for a piece of land to build a factory that produces main frames.

"A local businessman is also planning to invest RM100 million to produce diesel from used tyres using green technology," he said.

Idris said the company will collect used tyres in Melaka, estimated at 10 tonnes a day, to be processed using the technology from South Korea and China.

He said the plant is expected to start operations soon.

"I've identified all these as investments with very viable potential and have placed them on Melaka's investment radar.

"These projects do not include other companies expanding their businesses at a rapid pace in and around Melaka," he said.

Idris said the construction of Guardian Industries Malaysia Sdn Bhd's glass production plant in Lipat Kajang, costing RM800 million, will start after several issues, including land matter, are resolved.

The glass manufacturing plant, pharmaceutical park and Honda's expansion programme are expected to create 3,000 jobs, he said.

In a move to bolster economic activities in existing industrial areas, Idris said their managements would adopt a dual-pronged approach -- value add and increase production capacity of existing plants, upgrade quality of their products and services as well as increase utilisation of the land area like in Lipat Kajang, Teluk Gong and several other industrial areas around Alor Gajah and Jasin districts.

"I'm confident Melaka will re-emerge as a bustling economic hub as it used to be before (during the Melaka Sultanate). (We can realise this vision and mission) with the cooperation of all the administrators in the state.

"All of us should work as one united team to bring back Melaka's glorious era.

"I've reminded the state executive councillors and the workforce in Melaka to become the best "salesman" to the extent of selling sand to the Arabs and refrigerators to the Eskimos.

"If we have such a mentality to promote Melaka, I believe investors will have the trust and confidence to come to Melaka," he added.

Source: BERNAMA

The article was first published on Free Malaysia Today.

Housing, car loans cause of rising debt’

G Vinod

 | August 2, 2013

Several academics say that high asset prices and low wages are pushing Malaysians into debt.

PETALING JAYA: Malaysia’s household debt ratio to the nation’s Gross Domestic Product (GDP) stands at 83%, which is one of the highest in Asia, beating even Japan and Hong Kong.

The government said recently much of the nation’s household debt comprises housing, car and personal loans.

Some economists have said the nation’s high household debt ratio was caused by Malaysians who live beyond their means.

Others disagree with the argument and said the nation’s high household debt ratio was caused by a combination of factors.

“It is a combination of high asset prices and relatively low-income earners,” said Taylor’s University business school economist Subramaniam Pillay.

He said young graduates who were in their first jobs did not earn salaries which could enable them to buy cars and houses.

“Let’s take house prices as an example. In the last 40 years, the gap between salaries and property prices has widened. House prices have soared compared with the rise in salaries.

“So, many of them have no choice but to live by borrowing,” said Subramaniam.

Echoing Subramaniam’s sentiments, Universiti Sains Malaysia (USM) economist Amir Baharuddin also dismissed arguments saying that the nation’s working adults are spending beyond their means.

“It’s not that they have little money-management skills. The problem is, there is no money to manage,” said Amir.

Citing examples, the USM academic said working adults had no choice but to buy a house, despite its exorbitant price, due to necessity.

“Later they buy car to travel to work because the public transportation system is inefficient. As you know, cars are not cheap. So is there any money left to manage?” he asked.

Excessive government intervention

Institute of Democracy and Economic Affairs (Ideas) chief executive officer Wan Saiful Wan Jan said the high household debt ratio was caused by excessive government intervention in the economy, causing artificial inflation.

“For example car prices are inflated because of high excise and import duties,” he said.

High house prices is also a factor, but Saiful said it was caused by too much demand.

“I think this is a problem of too much development in the Klang Valley alone. If you spread development to other areas such as Seremban, Ipoh and Kota Baru, you will see a drop in house prices,” he said.

On how we can resolve the high household debt problem, Amir said it was time for the government to get serious about lowering house and car prices.

“Keep tabs on credit card surcharges as well. Currently, many credit card companies impose hidden charges that is becoming a burden to working adults,” he said.

However, Amir said it would not be easy to resolve the matter immediately.

“It is an enormous problem. Even economists may not have a definite solution for this. Maybe it is because we are depending too much on the western financial system,” he said.

Subramaniam, on the other hand, said not all debts were negative in nature, especially when it involved mortgages.

“It’s not a bad situation if you borrow money to buy a house as you are paying for a property,” said Subramaniam.

He added that it was also difficult to give a precise solution to the matter as not much details were provided on the household debt ratio.

“For example, do we know who are the people in debt? Is it the poor or the affluent ones? These are the details we need.” said Subramaniam.

Last month Bank Negara announced that it will cap the housing loan term to 35 years and halted all pre-approved personal financing products in order to address the high household debt issue.

New rules won't hurt consumer financing segment

The article was first published on Business Times.

'New rules won't hurt consumer financing segment'

Muhammed Ahmad Hamdan
2013/07/10

BANK Islam Malaysia Bhd does not see the new regulation on household debts introduced by Bank Negara Malaysia recently as having a negative impact on its consumer financing segment.

Business development director Khairul Kamarudin said Bank Islam is, in fact, optimistic of achieving around a 20 per cent growth in its consumer financing segment this year.

"We welcome the new regulation by Bank Negara. We don't see it affecting our consumer financing segment as we have been practising similar guidelines since two years ago," Khairul said after launching Bank Islam's new Visa platinum credit card here yesterday.

Bank Negara last Friday announced that commercial banks must now set 10 years as maximum tenure for personal loan financing and 35 years for property loans.

"Ninety five per cent of our property loan borrowers has tenures of below 35 years.

"Our personal loan segment only offers a maximum tenure of 15 years, compared to other banks that offer personal loan tenures of more than 20 years," Khairul said.

Housing loan segment accounts for 50 per cent of Bank Islam's consumer financing portfolio, while personal loan is 30 per cent.

"We believe that Bank Islam has strong product distribution channels which will support the growth of our consumer financing segment," he added.

The new rules set by BNM were to curb excessive household debts and to reinforce responsible lending practices by key credit providers.

This is in light of the country's increasing household debts - averaging at an annual rate of 12 per cent over the last five years.

Khairul said Bank Islam expects to secure between 25,000 and 30,000 new subscribers for its new Visa platinum credit card by year-end.

"The target is relatively low as it is based on the industry's performance. Nevertheless, we will run various campaigns and initiatives to attract new subscribers for the Visa platinum credit card, including those who have already subscribed from other banks."

Currently, Bank Islam has a total of 138,000 active credit card members, including 2,000 Mastercard platinum credit card holders.

Its consumer card segment, which comprises 1.6 million cards, constitutes about five per cent of the bank's total consumer financing portfolio.

GST will be neutral to business costs

The article was first published on Business Times.

'GST will be neutral to business costs'

By Norhisham Hussein

THE introduction of Goods and Services Tax (GST) to replace the current sales tax and services tax (SST) system has been a long-standing issue in Malaysia.

First mooted in the 1980s, GST has been put off countless times due to the public's doubts over it.

Much of the criticism of GST fall into three distinct categories:

* GST is hard to comply with, as it requires proper accounting and audit systems;

* GST is "regressive" since it is a flat tax and doesn't take into account the income level of consumers;

* GST is supposedly inflationary since it is applied to the prices of all goods, at all stages.

All three criticisms have some validity but not to a degree that critics will have them to be.

First, because of the multi-stage nature of GST and input tax credits, businesses incur no tax liability. Businesses paying GST on raw materials can offset this cost against the GST they collect on sales, which gives them an incentive to invest in the systems. GST, therefore, also does not have a "cascading" cumulative tax effect.

In other words, GST will be neutral to business costs, unlike the sales tax, which is levied at the manufacturing stage and incorporated into the input cost at the retail level.

Second, the regressive nature of GST should be balanced against the equally regressive sales tax. In fact, the government can make GST somewhat more progressive than the sales tax, as basic staple goods such as food can be "zero-rated", i.e. not charged GST at all.

Certain other consumer items that are deemed beneficial, such as books, are typically often zero-rated as well.

Third, the historical evidence regarding the implementation of GST and other ad-valorem taxes (VAT) across the globe shows that, at worst, such taxes cause a one-time increase in the final prices of consumer goods.

There have not been cases where the introduction of such a tax has caused a systemically higher rate of inflation. Consumers only pay the final tax rate, not the cumulative effect of GST levied at each stage of production.

In cases where GST/VAT system has replaced a pre-existing sales tax system, the evidence suggests final prices change very little, and in one case (Canada), have actually fallen.

At the level that is being discussed (circa seven per cent) relative to the sales tax (10 per cent), the likelihood is that GST will cause little movement in consumer prices, if at all.

The arguments against GST are thus weaker than they appear at first blush.

To counterbalance any weaknesses, a GST system causes far less market distortions and is much more efficient than the SST, while promising to yield higher tax revenue at lower tax rates.

Consumers will see how much tax they're incurring on consumer goods, unlike under SST where the tax burden is "hidden". No tax system is perfect, but a GST is much less imperfect than many assumed.

Ranhill Energy IPO

Another interesting IPO is coming to town. Will post more update such as whether or not it is a shariah-compliant IPO, and the analysts think of its indicative offer price of RM1.85.

Ranhill Energy seeks to raise RM753m from IPO

By Lim Cian Yai
bt@mediaprima.com.my
2013/07/05

Ranhill is due to make its debut on Bursa Malaysia's Main Market on July 31.

KUALA LUMPUR: Energy and utilities firm Ranhill Energy and Resources Bhd is seeking to raise up to RM752.95 million from its initial public offering (IPO).

Ranhill is due to make its debut on Bursa Malaysia's Main Market on July 31.

The IPO entails an offering of 407 million shares, with an indicative offer price of RM1.85 a piece. Of the total, 77 million shares will be available under an offer for sale by a major shareholder, therefore, raising RM142.45 million.

The proceeds will accrue entirely to the selling shareholder, Cheval Infrastructure Fund L.P. Upon listing, Cheval's stake in Ranhill will shrink to 15.8 per cent from 36.2 per cent at present.

The remaining 330 million new shares will be offered to the Malaysian public and institutional investors, raising RM610.5 million to the company.

"We hope to revitalise our capital structure through this listing exercise. We will use some funds to expand to China, which offers us a higher headroom, and also gear up a bit for more investment overseas," said Ranhill chief executive officer Tan Sri Hamdan Mohamad at the launch of its listing prospectus yesterday.

Of the RM610.5 million from proceeds, 60 per cent will be used for debt repayment and 33.6 per cent for business acquisition and expansion to increase Ranhill's market presence.

The company has identified four cornerstone investors that have agreed to buy 118.3 million shares.

They are Lembaga Tabung Haji, Eastspring Investments Bhd, Hwang Investment Bhd and Corston Smith Asset Management.

The book-building exercise started yesterday, with a price range dedicated to institutions being between RM1.70 and RM1.85.

"We received a strong response from investors and the shares are already oversubscribed," Hamdan said.

Ranhill hopes to boost water treatment capacity in China to 1,000 million litres per day (MLD) in the next five years.

It operates five water and waste-water treatment plants there, with a combined capacity of 270 MLD.

"If we hit 1,000 MLD, this will bring us RM500 million in revenue a year and a profit of around RM150 million," he said.

Last year, its business in China brought in RM150 million in revenue to the group.

Hamdan is considered a prodigy in the local corporate world. Along with Cheval, he privatised Ranhill Bhd in 2011 at 90 sen per share.

Its utilities arm, Ranhill Utilities Bhd, was also listed before being taken private by in 2008 at RM3.50 a share.