Author: Kit

Ringgit Retreats as Malaysian Budget Woes Add to China Concern

by Y-Sing Liau
Bloomberg
October 2, 2015

The ringgit fell and stocks retreated as concern Malaysia may miss its target of balancing the budget by 2020 hurt a currency already reeling from a worsening slowdown in China and allegations of corruption against Prime Minister Najib Razak.

The fiscal shortfall may be “in the region” of 1 percent of gross domestic product at the end of the decade, compared with a current deficit of 3.2 percent, the New Straits Times reported Thursday, citing comments by Najib to fund managers and investors in New York. Malaysia derives 22 percent of government revenue from oil-related sources and its finances have been sapped by a 49 percent drop in Brent crude over the past 12 months.

The ringgit fell as much as 1.2 percent before closing 0.3 percent down at 4.4152 a dollar in Kuala Lumpur, according to prices from local banks compiled by Bloomberg. It’s dropped 21 percent so far in 2015, trailing only the Brazilian real, Turkish lira and Colombian peso among 24 emerging markets tracked by Bloomberg amid a deepening slowdown in China and the prospect of higher U.S. interest rates. Continue reading “Ringgit Retreats as Malaysian Budget Woes Add to China Concern”

Ringgit rout fails to revive Malaysia exports

Steve Johnson
Financial Times
1st October 2015

Amid vigorous debate as to whether slumping currencies still have the ability to stimulate significant emerging market export growth, the recent example of Malaysia is fascinating.

During the Asian financial crisis of 1997-98, the collapse of the ringgit led to a sharp and almost instantaneous rise in exports.

Export growth accelerated from zero in mid-1997 to more than 40 per cent by early 1998, according to analysis by Hak Bin Chua, Asean economist at Bank of America Merrill Lynch.

As a result, Malaysia’s current account balance swung from a deficit of 12.4 per cent of gross domestic product in the second quarter of 1997 to a surplus of 18.7 per cent of GDP by the end of 1998.

“The J-curve effect, the temporary worsening [of the trade balance] following the depreciation, was short or even negligible in 1997,” says Mr Chua.

Since September 2014 the ringgit has plunged once again, tumbling to its lowest level against the dollar since the 1997 episode.

Yet, as Mr Chua observes, “the depreciation has not strengthened exports or improved the trade balance at all. There is no ‘J’ so far, only a flat ‘U’.” Continue reading “Ringgit rout fails to revive Malaysia exports”

The Malay agenda

– Nungsari Radhi
The Malaysian Insider
2 October 2015

The subject of Malay angst is a popular one lately. Not everyone is upset, of course, but there is a segment among the Malays, perhaps driven by a sense of insecurity, who have created mental models that put themselves under siege.

They feel disunited, threatened, and their honour besmirched. This, despite the Malays controlling almost all parts of officialdom in the country and constituting more than 60% of the population.

Many commentators have pointed out the unreasonableness of these sentiments. That this is an imagined reality, propagated for less than honourable intentions – to develop a political constituency among the Malays based on their fears and, perhaps, on their prejudices. Continue reading “The Malay agenda”

When sermons become hate speeches

Syerleena Abdul Rashid
The Malaysian Insider
2 October 2015

During the recent Aidil Adha celebrations, it was reported that the Pahang Mufti Department allowed some very detestable things to be broadcasted.

The sermon aimed at the opposition, in particularly; Malay Muslims who joined DAP by insinuating that they had gone against Islam by joining the political party.

The script stated, “The separation is because they priorities political parties, such as Umno, PAS, PKR and even the new Gerakan Harapan Baru more than Islam.”

“Furthermore, there are Muslims who joined DAP, which is clearly against Islam.”

Therein lays a problem most Malaysians are too afraid to admit: the contentious issue where sermons are being misused as political propaganda and have seemingly swayed from the authenticity of religious teachings. Continue reading “When sermons become hate speeches”

Some answers on my RM50m donation for hostels

Koon Yew Yin
Malaysiakini
2 Oct 2015

COMMENT After the publication of my RM50 million donation to the Penang state government for building student hostels, many people, including media journalists and BFM Radio, have asked me a lot of questions. They are curious because they have not come across something like this before.

Here are my answers:

I was born on Jan 6, 1933. My father started a coffin shop at No 8 Jalan Ipoh, KL about 100 years ago. When father retired about 30 years ago, my eldest brother inherited the coffin shop. As he got older, he found difficulty to compete with the modern undertakers and was forced to close the old shop about two years ago, and my younger brother continued the coffin business with a smaller shop in Kepong, KL.

As I have 11 siblings, I always needed some things since I was a boy. I remember always feeling hungry when I was young. One can imagine how 12 children rushed for food during meal time.

This is why I want to help the poor. Besides my RM50 million donation to the Penang government to build student hostels, I have to date, given about 300 scholarships to help students from poorer backgrounds to complete their tertiary education. Continue reading “Some answers on my RM50m donation for hostels”

Friday, 2 October 2015Friday, 2 October 2015

Salleh should not be a spineless Minister who dare not own up and apologise for his mistakes but want his innocent subordinates to eat “dead cat”

The Communications and Multimedia Minister, Datuk Seri Salleh Said Keruak should not be a spineless Minister who dare not own up and apologise for his mistakes but want his innocent subordinates to eat “dead cat”!

Salleh yesterday started the blame-game in Kuching and claimed that it was the Malaysian Communications and Multimedia Commission (MCMC) which provided him with the information that 71 per cent of Malaysian Internet users preferred the slower Streamyx, even as slow as 384 kilobyte per second (kpbs), instead of the faster broadband of multi-megabyte per second.

Let me tell Salleh to stop talking rubbish, and I want to reiterate that there is no country in the world which would prefer slower Internet unless it is peopled by cretins and idiots.

I do not believe anyone in MCMC would be so dense and unprofessional as to tell Salleh that 71 per cent of Malaysian Internet users preferred the slower Streamyx to faster multi-megabyte broadband.

Can he produce black-and-white to establish that he had been advised by MCMC that 71 per cent of Malaysian Internet users preferred the slower Steamyx to faster broadband, and I would agree that such a MCMC officer should be disciplined.

But if Salleh could not produce black-and-white to prove that he had been so advised by the MCMC, would he tender a double apology, one for making a most stupid and senile statement and secondly, for the cowardice and spinelessness of trying to pass the buck of his mistake to MCMC? Continue reading “Salleh should not be a spineless Minister who dare not own up and apologise for his mistakes but want his innocent subordinates to eat “dead cat””

Challenge to Najib to commission Global Movement of Moderates to report on who were the extremists and who were the moderates in the events surrounding 34-hour Bersih 4 rally and the 4-hour Sept. 16 Red Shirts Rally

At the beginning of his fourth speech to the United Nations General Assembly, the Prime Minister Datuk Seri Najib Razak recounted how five years ago he had stood before the same assembly and called for a Global Movement – of Moderates of all religions and all countries – to marginalize extremists, reclaim the centre, and shape the agenda towards peace and pragmatism.

He said Malaysia had followed up his call with both practical action and by building intellectual capacity.

Unfortunately in the past five years, the world has become a more dangerous place accentuated by the recent warning of a German journalist, Jurgen Todenhofer, who was embedded on the frontline with the Islamic State (IS) terrorist group for 10 days in the northern town of Mosul in 2014, in his new book “Inside IS – Ten Days in the Islamic State”, that millions of people in the West may perish in a nuclear tsunami the IS in planning to launch.

In Malaysia, although Najib has incorporated the Global Movement of Moderates, the cause of moderation is in retreat with extremism raising its ugly head, aided and abetted by the powers-that-be and causing a “perfect storm” of a national crisis to be formed! Continue reading “Challenge to Najib to commission Global Movement of Moderates to report on who were the extremists and who were the moderates in the events surrounding 34-hour Bersih 4 rally and the 4-hour Sept. 16 Red Shirts Rally”

IS planning nuclear tsunami, says German journalist who spent 10 days with them

Asia Times
September 30, 2015

Millions of people in the West may perish in a nuclear tsunami the Islamic State (IS) is planning to launch, warns a German journalist who embedded on the frontline with the terror group for 10 days in the northern Iraq town of Mosul in 2014, agencies report.

Recounting his impressions about IS in his new book Inside IS – Ten Days in the Islamic State, former German MP and noted journalist Jürgen Todenhöfer says the IS want to wipe out all those opposed to their plans for an Islamic caliphate and enslave their women and children.

According to him, the West is underestimating the power of IS which is trying to get its hands on nuclear weapons.

With more countries obtaining nukes, the chances of this terror group obtaining such weapons and using them against the West are more, the Munich native says.

The main people IS are planning to target are Shiites, Yazidis, Hindus, atheists and polytheists.

Moderate Muslims who believe in democracy too may be killed as they promote human laws over the laws of God from IS point of view. Continue reading “IS planning nuclear tsunami, says German journalist who spent 10 days with them”

Scandal-hit Malaysia investment fund files accounts late

Michael Peel in Bangkok
Financial Times
October 1, 2015

The Malaysian state investment fund at the centre of an international corruption scandal has failed to file its accounts on time.
1 Malaysia Development Berhad blamed the delay on a lack of access to documents held by investigators.

The fund said it was given permission by the companies regulator to miss the September 30 deadline, adding that two of its subsidiaries also wanted to submit their accounts late.

Critics said the delay was the latest example of a lack of transparency in the face of a large debt burden and allegations of misappropriation of funds that have also engulfed Najib Razak, Malaysia’s prime minister. Both 1MDB and Mr Najib have denied wrongdoing.

“Such complete disregard for timely regulatory compliance demonstrates 1MDB’s contempt for good corporate governance and financial accountability,” said Tony Pua, an opposition MP who was barred from travelling outside Malaysia after he raised questions about the fund. Continue reading “Scandal-hit Malaysia investment fund files accounts late”

Malaysia and the Race Card

Wall Street Journal
29th Sept 2015

Minorities become scapegoats as Najib tries to keep power.

Malaysian Prime Minister Najib Razak’s fight for political survival has divided the ruling United Malay National Organization and hurt the nation’s economy. Now it is sparking racial discord. Malaysia’s history of ethnic strife, including the 1969 riots in which hundreds of Chinese were killed, makes this development especially troubling.

At the end of August, a series of rallies by the reform movement Bersih demanded that Mr. Najib resign because of corruption allegations that he denies. The main Malay opposition party PAS didn’t take part as it did in past Bersih rallies, so the crowd of at least 50,000 was mostly made up of Chinese and Indian minorities.

That gave Mr. Najib’s supporters a pretext to claim that the main ethnic Chinese opposition party, the Democratic Action Party, is part of a conspiracy to bring down the Prime Minister and take away the affirmative-action privileges reserved for the Malay majority. On Sept. 16 the most radical hotheads, known as red shirts, tried to rally in Kuala Lumpur’s Chinatown, scene of the worst violence in 1969. Continue reading “Malaysia and the Race Card”

Umno Baru’s descent into savagery

Mariam Mokhtar
Malaysiakini
28 Sep 2015

Observing Umno Baru under Najib Abdul Razak is like watching the party’s descent into tribalism and savagery. Najib forgets that he represents all Malaysians, not just a tiny minority of Umno Baruputras. Najib uses the ‘psychology of fear’ to motivate the insecure ultra-Malays to act in unconscionable ways.

The speech he made at the National Silat Council (Silat Pesaka Malaysia), in which he defended the ‘red shirt’ rally or Himpunan Rakyat Bersatu was inflammatory and seditious. That he made the speech is wrong. That he has not yet been charged with sedition is not surprising.

Najib does not know how to be the leader of a nation. Under Najib, Malaysia has degenerated into racial conflict and class struggle, and is ruled by fear and violence; rural folk vs urbanites. Malays vs non-Malays. The rich vs the poor. Umno Baru vs the rest of Malaysia. East Malaysia vs peninsular Malaysia. The true indigenous people vs the pseudo indigenous people (Malays) and mamaks.

In his speech supporting the ‘red shirt rally’, Najib praised the 15,000 attendees. In a voice charged with emotion, he said that there were three types of supporters. The first and second are the “weak supporters”, and the “hardcore supporters”. His reference to the third type, which is “supporters who are willing to die”, was dangerous and tantamount to treason. Continue reading “Umno Baru’s descent into savagery”

Najib will split the country

K. Siladass
1st October 2015

Prime Minister cum President of UMNO Dato Seri Najib Razak has now openly supported the Red Shirt claiming that the Malays have been slapped many times and the 16th September Red shirt rally was the answer. This goes to show, Najib was from the beginning supporting the Red shirt rally and his initial reaction of an innocent bystander was all a gimmick.

What Najib has conveniently ignored is the fact that the non-Malays have been knocked on their heads many times and what we have is inaction to bring the culprits to the books. Leaving this aside, it would have been expected of Najib to come up with sound reasoning rather than this “slap” allegation which is closer to infantile attitude.

Now it is clear that Najib needed this Rally to show those who opposed him here and the whole world that he has a large following who support him. Sadly, the actual fact is that the Malays themselves find Najib’s attitude shocking, if not embarrassing. Continue reading “Najib will split the country”

Thursday, 1 October 2015Friday, 2 October 2015

The 1965 genocide and rise of Suharto

– Tommy Thomas
The Malaysian Insider
1 October 2015

Fifty years ago, as a young student, I was saddened to learn of an attempted coup in Indonesia, which within a few months overthrew President Sukarno.

Although the newly established Malaysia (Singapore had just exited the Federation) was under Confrontation, and Indonesia was the enemy, I was always a fan of Sukarno.

During the dark days of the Cold War – the Cuban missiles crisis occurred less than 3 years earlier – Sukarno, together with Nehru, led the non-aligned movement. Continue reading “The 1965 genocide and rise of Suharto”

With the approach of a “perfect storm” of combined political, economic and nation-building crises, Malaysia needs statesmen and stateswomen from both sides of the political divide to save Malaysia and not racists, opportunists and charlatans

The signs of the coming of a “perfect storm” of combined political, economic and nation-building crises hitting Malaysia are to be seen everywhere except to the blind and bigots.

The latest sign of the coming of the “perfect storm” in Malaysia is the Reuters report yesterday quoting the Indonesian Finance Minister, Bambang Brodjonegoro saying that Indonesia will seek to shield itself from the spread of any financial contagion from Malaysia by improving market sentiment and using government borrowing to boost dollar inflows.

He expressed worries of Indonesian investors as the twin declines in the rupiah and reserves had revived memories of the Asian financial crisis of the late 1990s, as well as concerns about contagion from Malaysia “which is in the grips of an escalating political and financial crisis linked to a struggling state investment fund”.

This is evidence that the Malaysian governance has become not only a threat to our own national well-being but also a threat to the economic well-being of neighbouring ASEAN nations.

We should stop the pretence that everything is fine with Malaysia, what with Malaysia climbing two spots in the Global Competitiveness Report 2015-2016, (which is nothing much to boast about in a closer study of the latest World Economic Forum ranking) or that there is nothing for Malaysians to be shy or ashamed in having their Prime Minister, Datuk Seri Najib Razak as the first serving head of government in the world to be investigated as a kleptocrat under the US Kleptocracy Asset Recovery Initiative 2010 with the twin scandals of the RM50 billion 1MDB and RM2.6 billion “donation” in Najib’s personal banking accounts. Continue reading “With the approach of a “perfect storm” of combined political, economic and nation-building crises, Malaysia needs statesmen and stateswomen from both sides of the political divide to save Malaysia and not racists, opportunists and charlatans”

Soft spot for the British

– M. Bakri Musa
The Malaysian Insider
30 September 2015

The British replaced the Iberians and Dutch in Malaysia. Those colonialists carved up the Malay world among themselves, with Malaysia fortunately falling under the British while the larger archipelago going to the Dutch and the Philippines to the Spaniards.

I say “fortunately”, considering the fate of the Indonesians and Filipinos. For whatever reason the British were much more benign, or less malevolent.

Among the consequential differences, while our Indonesian brethren had to fight for their independence, Malaysians opted for the more civilised and considerably less traumatic route of negotiations. Continue reading “Soft spot for the British”