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Pass through… What??

By Shanker | June 01, 2011
The Malaysian Insider

JUNE 1 — I refer to the prime minister’s statement that independent power producers (IPPs) would not benefit from a power hike, as he’s quoted by The Malaysian Insider — “It is a pass-through tariff so nobody benefits.”

Er… what’s “pass through”? Could someone please explain in plain English, what is this new terminology? For the life of me, it sure seems to have escaped the notice of renowned economic and financial experts; don’t think you’d find it in anything that, say Paul Krugman, writes.
Continue reading “Pass through… What??”

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Putrajaya’s inflation forecast ‘delusional’, says Guan Eng

By Yow Hong Chieh | June 01, 2011
The Malaysian Insider

KUALA LUMPUR, June 1 — The government is fooling itself and lying to the people if it thinks the recent round of subsidy cuts will have a negligible impact on inflation, Lim Guan Eng has said.

The DAP secretary-general said the 0.27 per cent inflation increase expected by the government following diesel subsidy cuts and power rate hikes was not borne out by the facts on the ground, where prices of basic necessities have gone up more rapidly.
Continue reading “Putrajaya’s inflation forecast ‘delusional’, says Guan Eng”

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Khazanah MD ‘frustrated’ in regulated industries, reports FT

By Yow Hong ChiehMay 30, 2011 | The Malaysia Insider

KUALA LUMPUR, May 30 — Khazanah Nasional Bhd managing director Tan Sri Azman Mokhtar has admitted to being disappointed by his inability to trim fat from the portfolio he inherited in 2004 due to political interference, the Financial Times reported yesterday.

“We have had our frustrations, and there have been areas, mostly in the regulated sectors such as electricity, automobiles and aviation, where value has stagnated or even declined,” Azman (picture) told the international financial daily.

The Financial Times said that despite scoring a “crushing victory” in a US$3.6 billion (RM10.8 billion) takeover battle with India’s Fortis for Singapore healthcare group Parkway Holdings, Khazanah was still struggling to turn around companies in its legacy portfolio, which includes national carmaker Proton and Malaysia Airlines.

“Big questions remain about Khazanah’s ability to deal equally decisively with the rest of its portfolio, not least because of government opposition to radical surgery on any of its significant companies,” the report said. Continue reading “Khazanah MD ‘frustrated’ in regulated industries, reports FT”

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When belts cannot be tightened anymore

Hsu Dar Ren
The Malaysian Insider
May 26, 2011

MAY 26 — I chatted with an old patient of mine after a consultation yesterday. He was probably suffering from the side effect of stress and not enough rest. I enquired about his job and he told me that he is working two jobs now; a daytime office job and part- time taxi driving at night. He had to do this to make ends meet.

So I told him what any doctor would tell his patient under these circumstances– to rest more.

Then he started to pour out his woes to me: that he has already been tightening his belt over the past few years, that he dreads to think of ways to tighten it some more, since the cost of living is creeping up and food prices are going to shoot up. He told me that there would come a point that the belt cannot be tightened anymore, and that point is fast being reached. Continue reading “When belts cannot be tightened anymore”

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Subsidy cuts focus of today’s Cabinet meeting

The Malaysian Insider | May 25, 2011

KUALA LUMPUR, May 25 — Subsidy cuts will top the agenda when Datuk Seri Najib Razak chairs the weekly Cabinet meeting today, with many speculating it will lead to hike for RON95 petrol and electricity rates.

Cabinet sources say the government has to trim the runaway subsidy bill which could balloon to RM21 billion if nothing is done.
Continue reading “Subsidy cuts focus of today’s Cabinet meeting”

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Subsidy reduction is not the only thing

By Hafiz Noor Shams | May 23, 2011
The Malaysian Insider

MAY 23 — Subsidy reduction will allow market forces to allocate resources more efficiently. Prime Minister Datuk Seri Najib Razak was reported saying so recently to justify his administration’s commitment to subsidy reduction in the long run.

By doing so, the Najib administration claims to be an advocate of free market. A claim that is not necessarily true, however. At best, that claim reveals a selective belief in the free market.
Continue reading “Subsidy reduction is not the only thing”

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Guan Eng calls for Felda to bear sugar subsidy cuts

By Lee Wei Lian | May 23, 2011
The Malaysian Insider

KUALA LUMPUR, May 23 — Lim Guan Eng continued to pressure the government over subsidy cutbacks, saying that the government should look at the profitability of some of its government-owned businesses first before burdening the public with further price increases.

The DAP secretary-general said in a media statement today that the purported RM116.6 million in savings from raising sugar prices by 20 sen could be more than offset by the RM232 million in profit reported by MSM Malaysia Holdings Bhd, a subsidiary of government-owned Felda Global Ventures Holdings Sdn Bhd.
Continue reading “Guan Eng calls for Felda to bear sugar subsidy cuts”

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Slash graft before cutting subsidies

Malaysiakini
May 22, 11

‘This illegal leakage is costing the nation to bleed, thus the reason behind the need to cut subsidies for the rakyat.’

Idris presses his case on cutting subsidies

Patriot: Subsidy cuts could be kept to a minimum so as to not burden the poor people struggling hard to earn a living to take care of their numerous domestic and external expenditures if there is proper and prudent governance and the elimination of servicing the cronies’ insatiable monetary wants.

What is being very prominently reported is the increase in government expenses on subsidies would be insurmountable based on current global trends and escalations.

However, the government never informs us how much could be saved if funds are properly utilised that could be ultimately channeled into covering some of the increases in the prices of commodities and foodstuff in order not to burden the poor. Continue reading “Slash graft before cutting subsidies”

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DAP: BN opiates citizens to hide its sins

Malaysiakini | May 20, 11

The DAP continued to harp on the “subsidy opium” notion raised by Prime Minister Najib Abdul Razak, saying the BN government has fed Malaysians with “opium” over the decades to hide the impact of its massive corruption, cronyism, leakages and maladministration.

National DAP publicity secretary Tony Pua described BN as the “drug pusher” that has fed “opium” to Malaysians in increasing doses over the years to mask the fact that the Malaysian economy has been unable to grow at the necessary pace and competitiveness.
Continue reading “DAP: BN opiates citizens to hide its sins”

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Opium and walking stick

Lim Sue Goan
The Malaysian Insider
May 19, 2011

MAY 19 — For the very first time, Prime Minister Datuk Seri Najib Razak described the fuel subsidy as opium. His remarks were shocking as the people have been enjoying subsidies over the past few decades and would it mean that they have taken opium for decades?

Long-term opium use would cause irreversible damage to health and even death. The Chinese used to be called “The Sick Man of East Asia” during the Qing Dynasty as opium taking was a trend at that time.

If subsidies are opium to the national economy, the country must then first go through a painful process of rehabilitation before it can recover. And whether it would succeed, it all depends on the people’s determination. Continue reading “Opium and walking stick”

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Implications of GTP on ETP-2: Government facilitation

By Dr. Daphne Loke | May 18, 2011
The Malaysian Insider

May 18 — This article concerns the numerous private sector projects proposed for development and have been left to languish indefinitely in the hands of government departments at the proposal stage.

I remember applying for an IPTS license many years ago. The department concerned displayed on a notice board the list of applications which could not be processed due to lack of certain documents still pending from the applicant. Each applicant was provided with a complete checklist of documents required and a process flowchart for this activity.
Continue reading “Implications of GTP on ETP-2: Government facilitation”

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IPP subsidies under review

By Lee Wei Lian | May 19, 2011
The Malaysian Insider

KUALA LUMPUR, May 19 — The controversial gas subsidies for independent power producers (IPPs) are under review but no decision has been made yet, said Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah today.

“We have done a discussion and study under the Ministry of Energy, Green Technology and Water, EPU (Economic Planning Unit) and myself,” Husni told reporters at the sidelines of the 15th Malaysia Banking Summit today when asked if the subsidies will be relooked at. “We have to wait for the decision.”
Continue reading “IPP subsidies under review”

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Poor have no shield from subsidy cuts, says Pua

By Yow Hong Chieh | May 19, 2011
The Malaysian Insider

KUALA LUMPUR, May 19 — Subsidy cuts will widen the gulf between rich and poor in Malaysia if the Najib administration does not cushion the impact of price hikes on lower income groups, DAP publicity chief Tony Pua has said.

He said the lack of measures to lessen the burden on the bottom 40 per cent of income earners would only worsen the already-high level of income inequality in Malaysia, which, according to the World Bank, was among the highest in Asia and close to South American levels.

Pua said despite repeated price hikes to key items like sugar, petrol and diesel, the government had yet to fulfil its pledge to implement programmes like a cash rebate for motorcycles under 250cc and cars under 1,000cc as well as one for those hit by reductions in food subsidies.
Continue reading “Poor have no shield from subsidy cuts, says Pua”

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Malaysia slips in economic competitiveness

By Yow Hong Chieh
May 18, 2011 | The Malaysian Insider

KUALA LUMPUR, May 18 — Malaysia fell six slots from 10th to 16th in a closely-watched international ranking of economic competitiveness despite recent government assurances that it was winning the fight against graft while improving accountability and transparency.

The Institute of Management Development (IMD) 2011 World Competitive Rankings released yesterday also saw Singapore knocked off its perch by this year’s joint leaders Hong Kong and the United States.

Even as the US regained the top spot after losing it for the first time in decades to Singapore last year, Malaysia is now only two places above the spot it occupied two years ago after dropping the most in ranking out of the top 20 countries. Continue reading “Malaysia slips in economic competitiveness”

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DAP: Remove IPP subsidies first

By Yow Hong Chieh | May 18, 2011
The Malaysian Insider

KUALA LUMPUR, May 18 – The Najib administration should first cut billion-ringgit subsidies for independent power producers (IPPs) rather than burden the people with subsidy cuts on essential items, DAP has said.

DAP secretary-general Lim Guan Eng said the government would only spur inflation by removing the diesel super subsidy before cutting “big opium” gas subsidies worth RM19 billion for IPPs and commercial power sectors.

“Remove the big opium of gas subsidies that can save tens of billions of ringgit annually before dealing with the opiate for the masses that only save hundreds of millions of ringgit,” he said in a statement today.
Continue reading “DAP: Remove IPP subsidies first”

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Pakatan faults BN for subsidy ‘opium’ addiction

By Clara Chooi | May 18, 2011
The Malaysian Insider

KUALA LUMPUR, May 18 — Pakatan Rakyat (PR) lawmakers have blamed Barisan Nasional (BN) for failing to address the country’s addiction to subsidies with alternatives, rebuking Datuk Seri Najib Razak for transferring the “opium’ to cronies.

They said escalating cost of living and stagnant wages have made Malaysians dependent on subsidies, warning that any sudden removal would bankrupt people instead of encouraging competition and wiping out market distortions.

The PR lawmakers suggested the Najib administration take a more holistic approach to cut its burgeoning subsidy bill through a total restructuring of the system by reducing subsidies to corporate giants instead of to the poor, implementing a minimum wage council to boost salaries, and providing better public transportation system to reduce dependency on vehicle ownership and fuel consumption.
Continue reading “Pakatan faults BN for subsidy ‘opium’ addiction”

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FDIs into Malaysia from Singapore to drop?

Klick4Malaysia
Tuesday, 10 May 2011

The outcome of the recent general election in Singapore could spell the end of many Malaysians landing good-paying jobs there and worse, put a dent on foreign direct investments (FDIs) in top notch projects here such as Iskandar Malaysia, an industry observer said.

Provectus managing principal Sreedhara Naidu said the election, which saw the People’s Action Party (PAP) lose 40 per cent of the votes, meant that Malaysia’s dependence on Singapore’s FDIs could also see a slight fall within the next three to four years as the island republic looks more inward in terms of investments.

He suggested that the government create more skilled jobs as Singapore immigration rules may be tightened, making it difficult for Malaysians to land jobs there.

“FDIs into Iskandar Malaysia and job opportunities for Malaysians, particularly in Johor, could be affected by last week’s Singapore general election outcome as the Singapore cabinet addresses key election issues that lost them 40 per cent of popular votes.

“With only 60 per cent of voters happy with PAP, the leadership will pull out all stops to quickly remedy immigration, housing, urban poverty, health services and education issues.

“They may choose to tighten skilled and semi-skilled foreign worker intake, which will affect Malaysians’ skill pool with Sijil Pelajaran Malaysia to diploma education that have traditionally looked to Singapore as an attractive destination (for employment),” Naidu said. Continue reading “FDIs into Malaysia from Singapore to drop?”

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Malaysia: Transforming to Vision 2020

By Khalid Noorshah
Globalia Magazine

Malaysia is fortifying her resolve to achieve her ideal, Wawasan 2020 or Vision 2020 within the nine years left, to be a self sufficient industrialised nation encompassing all aspects of life from economic prosperity, social well being, world class education standards and facilities, political stability as well as psychological well being. Prime Minister Dato’ Sri Najib Tun Razak showed that, since taking office in April 2009, he was focused in making Vision 2020 a reality within the timeline. He was well aware that he needs to improve the government to be more effective and at the same time he needed the people to be united as one to face the challenges of a new Malaysia.

In his maiden speech, he announced the One Malaysia (1Malaysia) concept tagged with a slogan People First Performance Now by calling on the Cabinet, government agencies and civil servants to more strongly emphasize ethnic harmony, national unity and efficient governance and attached with it the values of perseverance, a culture of excellence, acceptance, loyalty, education, humility, integrity and meritocracy. Immediately after assuming office, Najib introduced a series of Key Performance Indicators (KPI) in order to measure and improve efficiency and quality of government services and its delivery as well as realising the 1Malaysia concept. The KPI provides a mechanism for evaluation of ministers and other government agencies including performance reviews carried out every six months. Najib identified six major policy areas in which the KPI will play an especially important role in improving the effectiveness of the Malaysian government. Continue reading “Malaysia: Transforming to Vision 2020”