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Explain disparity between ‘actual’ and ‘approved’ FDIs, DAP tells Putrajaya

By Shazwan Mustafa Kamal
The Malaysian Insider
Jun 29, 2011

KUALA LUMPUR, June 29 — The Najib administration must explain the wide disparity between approved foreign direct investments (FDIs) and actual investment figures, the DAP said.

DAP national publicity secretary Tony Pua told reporters that a written reply by the Ministry of Trade and Industry (MITI) revealed that from 1996 to 2010 only RM179.8 billion out of the RM289.9 billion of approved investments had been realised.

“A shocking RM199.1 billion of declared FDI had disappeared without a trace,” he said in a statement today. Continue reading “Explain disparity between ‘actual’ and ‘approved’ FDIs, DAP tells Putrajaya”

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Maybank, CIMB call off RHBCap takeover plan

by Izwan Idris
The Sun
23 June 2011

LUMPUR (June 23, 2011): Malayan Banking Bhd (Maybank) and CIMB Group have announced separately that they have aborted plans to take over RHB Capital Bhd.

“In light of recent developments and following further deliberations, the board of directors of Maybank has decided not to pursue the possible merger at this juncture,” Maybank said in a short statement to Bursa Malaysia today.

Maybank and its biggest local rival CIMB Group had obtained Bank Negara Malaysia’s approval last month to start merger talks with RHB Capital.

The announcement from Maybank was released after trading on Bursa Malaysia ended for the day. Continue reading “Maybank, CIMB call off RHBCap takeover plan”

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British joint-venture gets Kelana LRT job for RM670m

June 21, 2011

KUALA LUMPUR, June 21 — A Malaysia-British joint-venture has won the coveted Kelana Jaya light rail transit extension project for RM670 million, operator Syarikat Prasarana Negara Berhad said today.

Prasarana said it issued the Letter of Award to CMC-Colas-Uniway (CCU) to undertake works worth RM673, 920, 651.04.

“The job entails the engineering, procurement, construction, testing and commissioning of system works for the Kelana Jaya Line Extension project,” Prasarana said in a statement. Continue reading “British joint-venture gets Kelana LRT job for RM670m”

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Bank Negara’s conditions tripping Abu Dhabi’s RHB sale

By Jahabar Sadiq
Editor
The Malaysian Insider
Jun 19, 2011

KUALA LUMPUR, June 19 — Several new Bank Negara conditions are threatening the RM5.9 billion sale of a 25 per cent stake in RHB Capital Bhd between two Abu Dhabi sister firms, including the requirement that the new shareholder must support a possible merger with another Malaysian bank.

Two other puzzling requirements by the central bank is the request for Abu Dhabi Commercial Bank (ADCB) and new RHB shareholder Abu Dhabi investment fund Aabar Investments to adjust the sale price if the merger price is lower than the RM10.80 per share price agreed by both companies and the merger must not deviate too far from the market price so as to weaken the merged entity.

The Malaysian Insider understands that after the deal was signed on Friday, Bank Negara sent a series of harsh emails to to ADCB telling them to state the conditions imposed by the central bank in their press releases, which some bankers say is an aggresive and unusual intervention for such a matter. Continue reading “Bank Negara’s conditions tripping Abu Dhabi’s RHB sale”

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RM63.9m spent on consultants and ETP, GTP open days

By Shazwan Mustafa Kamal
The Malaysian Insider
Jun 15, 2011

KUALA LUMPUR, June 15 — A total of RM63.9 million was spent to hire consultants for Pemandu and to organise three open days for Government Transformation Plan (GTP) and Economic Transformation Programme (ETP) initiatives, the government said today.

Minister in the prime minister’s department Tan Sri Koh Tsu Koon said that the government had paid RM36.3 million to various consultants, while RM27.6 million was used for the open days in Kuching, Kuala Lumpur, and Kota Kinabalu last year.

In two written replies to DAP’s Liew Chin Tong, Koh said that the costs were justified as they were far lower than the allocated budget. Continue reading “RM63.9m spent on consultants and ETP, GTP open days”

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Guan Eng: RM13b bloated spending shows IPPs protected

By Clara Chooi
The Malaysian Insider
Jun 15, 2011

Lim: The only losers are 27 million ordinary consumers who are not IPPs.

KUALA LUMPUR, June 15 — The Najib administration’s attempt to increase its 2011 budget by RM13 billion is proof of its failure to control spending even after slashing subsidies on daily essentials, DAP’s Lim Guan Eng said today.

The Penang Chief Minister blamed Barisan Nasional’s (BN) “bad governance” for the increasing cost of living in Malaysia, adding that the public was now experiencing “the worst of both worlds”.

“By reducing subsidies, there are inflationary pressure causing prices to rise and hurting the poor. And yet, cuts do not improve efficiency and competitiveness nor cut down budget expenditure as the IPPs (independent power producers) are still allowed to enjoy gas subsidies.

“The only losers are 27 million ordinary consumers who are not IPPs,” he said in a statement today.

Putrajaya tabled a RM13,186,713,000 supplementary supply bill in Parliament yesterday, seeking additional spending in the first half of this year. The amount is an 8 per cent addition to Budget 2011’s RM162,805,323,000, which was tabled last year. Continue reading “Guan Eng: RM13b bloated spending shows IPPs protected”

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Tourism Ministry: RM1.8 million spent on Facebook pages

By Shazwan Mustafa Kamal
June 14, 2011
The Malaysian Insider

KUALA LUMPUR, June 14 — A whopping RM1,758,432 was spent on developing six Facebook pages to promote Malaysian tourism, the Tourism Ministry said today.

Deputy Tourism Minister James Dawos Mamit said this today in reply to a question from Anthony Loke (Rasah-DAP).

Each Facebook page cost RM293,072 — Cuti-Cuti 1 Malaysia, Citrawarna 1Malaysia, Karnival Jualan Mega 1 Malaysia, Festival Pelancongan Seni Kontemporari 1 Malaysia, Kempen 1 Malaysia Bersih and Fabulous Food 1 Malaysia.
Continue reading “Tourism Ministry: RM1.8 million spent on Facebook pages”

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RHB mega-merger: ‘Najib must be accountable’

Jun 12, 11 | MalaysiaKini

DAP has asked Prime Minister Najib Razak to explain why Bank Negara is pushing hard for the RHB merger with one of Malaysia’s two largest banks when the move would lead to foreign exchange outflow and an unhealthy monopoly.

“Najib should present ministerial statement in Parliament tomorrow on the rationale and status of Bank Negara’s (approved) merger between RHB Capital with (either) Maybank or CIMB Group to create Southeast Asia’s biggest bank,” said DAP veteran Lim Kit Siang in a statement today.

“Basic principles and questions about Bank Negara’s push for the country’s largest corporate merger need to asked and clarified,” he said. Continue reading “RHB mega-merger: ‘Najib must be accountable’”

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What is the rationale and status of Bank Negara’s proposed merger between RHB Capital with Maybank or CIMB Group to create Southeast Asia’s biggest bank?

As Finance Minister, Datuk Seri Najib Razak should present a ministerial statement in Parliament tomorrow on the rationale and status of Bank Negara’s proposed merger between RHB Capital with Maybank or CIMB Group to create Southeast Asia’s biggest bank.

The top regional banks in Asean include three Singapore banks DBS Group Holdings Ltd, Oversea-Chinese Banking Corp Ltd (OCBC) and United Overseas Bank Ltd (UOB) with market capitalisation of US$27.7bil, US$25.7bil and US$24.5bil respectively.

While in terms of asset size, the Singapore banks remain at the top, a Maybank-RHB Cap merger could overtake DBS Group in terms of combined market capitalisation with US$28.8bil.

The potential merger of CIMB-RHB, on the other hand, would see a combined market capitalisation of US$27.3bil, just marginally below DBS but would overtake both OCBC and UOB. In terms of asset size, DBS, OCBC and UOB stand at US$238bil, US$198.4bil and US$178.8bil respectively. Continue reading “What is the rationale and status of Bank Negara’s proposed merger between RHB Capital with Maybank or CIMB Group to create Southeast Asia’s biggest bank?”

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Choosing the IMF’s next leader

By Joseph E Stiglitz
June 5, 2011 | Free Malaysia Today

NEW YORK: Sooner than expected, the International Monetary Fund will have a new managing director. For more than a decade, I have criticized the Fund’s governance, symbolized by the way its leader is chosen.

By gentlemen’s agreement among the majority shareholders – the G-8 – the managing director is to be a European, with Americans in the number two post and at the head of the World Bank.

The Europeans typically picked their nominee behind the scenes, as did the Americans, after only cursory consultation with developing countries. The outcome, however, was often not good for the IMF, the World Bank, or the world. Continue reading “Choosing the IMF’s next leader”

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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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Will the GST be another nail in the coffin?

Sakmongkol AK47
The Malaysian Insider
May 22, 2011

MAY 22 — A long time ago, I wrote about the government’s plan to implement goods and services tax (GST). I am not going to bother looking at what I wrote. Maybe what I wrote then did not make sense at all.

But to me, the plan to implement the GST will be another nail in the coffin for the Barisan Nasional government. In almost all cases where the GST was introduced, it has raised a lot of discontent. Governments have fallen because of the GST and finance ministers have resigned.

Remember this: Governments have fallen, finance ministers have quit.

I hope, the government’s tax package is not an attempt to trick workers into thinking that they will be better off after the proposed tax cuts. I also hope it will not trick people on government benefits that they will be better off after the so-called “compensation”, despite the introduction of a GST.

Consider this. Our tax base is perhaps only 15 per cent, i.e. only about 15 percent of the population pays taxes. The balance do not pay taxes — kampong people, self-employed, ordinary folks outside the tax bracket. Now, all are caught in the tax trawler net and will pay consumption tax. Never mind, says the government, we will compensate the ordinary people. Continue reading “Will the GST be another nail in the coffin?”

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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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M’sia lost RM135.3 bil in illicit outflow

Malaysiakini
Mar 10, 11

Malaysia recorded RM135.3 billion in errors and omissions (E&O) in its outflow funds for the period 2000 to 2009.

Prime Minister Najib Abdul Razak said considering the huge amount of trade transactions with the rest of the world as well as the lack of data for specific goods due to statistical errors or unrecorded transfer of funds, there was bound to be E&O in the balance of payments.

“Malaysia’s financial and economic trading with the world outside is seen in the balance of payments statistics, which is prepared according to a methodology set by the International Monetary Fund (IMF),” he said in his written reply to a question from Lim Kit Siang (DAP-Ipoh Timur) at the Dewan Rakyat sitting today.

Lim wanted to know the measures taken by the government in the light of a report by Global Financial Integrity (GFI) which stated that Malaysia saw illicit money outflows amounting to RM889 billion from 2000 to 2008 due to corruption and mismanagement. Continue reading “M’sia lost RM135.3 bil in illicit outflow”

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Mukhriz’ “bizarre” dismissal of GFI report Malaysia lost RM888 billion in 9 years in illicit capital outflows – a pre-emptive Mahathir strike to forestall full inquiry into corruption and financial scandals under his premiership?

International Trade and Industry Deputy Minister Datuk Mukriz Mahathir said today that the government will not look into claims by international financial watchdog Global Financial Integrity (GFI) that Malaysia had suffered illicit financial outflows in excess of RM888 billion or US$291 billion due to corruption and mismanagement between 2000 and 2008.

He categorically dismissed the GFI report listing Malaysia as the world’s top-fifth country with illicit financial outlays in the past decade due to corruption and bad governance as bizarre.

Mukhriz told a press conference after launching Google Malaysia’s new office in Kuala Lumpur:

“We do not see the need to look into it. If you go through the report, they have made quite a few bizarre claims against several countries.

“Going by Bank Negara’s figures, we know how much exactly is going out so you can hardly consider those figures (from GFI) as factual.”

Who is this “we” – Mukhriz and Prime Minister, Datuk Seri Najib Razak or Mukhriz and his father, former Prime Minister Tun Dr. Mahathir Mohhamad? Continue reading “Mukhriz’ “bizarre” dismissal of GFI report Malaysia lost RM888 billion in 9 years in illicit capital outflows – a pre-emptive Mahathir strike to forestall full inquiry into corruption and financial scandals under his premiership?”

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Explain why Malaysia topped the world in per capita illicit capital outflows, losing RM888 billion as a result of corruption and misgovernance, instead of campaign of lies and falsehoods in Tenang by-election

UMNO and MCA leaders should be explaining why Malaysia topped the world in per capita illicit capital outflows, losing RM888 billion in nine years from 2000 – 2008 as a result of corruption and misgovernance, instead of disseminating lies and falsehoods in the Tenang by-election in Johore.

It is five days since the Washington-based financial watchdog, Global Financial Integrity (GFI), reported that Malaysia is among the countries which registered the highest illicit financial outflows over a period of nine years in the last decade.

The five countries with the highest illicit financial outlays between 2000 and 2008 were:

1. China $2.18 trillion
2. Russia $427 billion
3. Mexico $416 billion
4. Saudi Arabia $302 billion
5. Malaysia $291 billion.

Capital outflows from Malaysia more than tripled from US$22.2 billion in 2000 to US$68.2 billion in 2008, totaling US$291 billion (or RM888 billion) in nine years between 2000 and 2008. Continue reading “Explain why Malaysia topped the world in per capita illicit capital outflows, losing RM888 billion as a result of corruption and misgovernance, instead of campaign of lies and falsehoods in Tenang by-election”

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Investigate Why Malaysia Has Attained World Ranking in Illicit Outflows

by Dr. Lim Teck Ghee

I refer to a report by Washington financial watchdog Global Financial Integrity which found that Malaysia lost US$291 billion or RM889 billion through illicit outflows between 2000-2008.

The report written by GFI economists Karly Curcio and Dev Kar, who is a former senior economist at the International Monetary Fund is deserving of attention from everyone in the country – the Prime Minister to the lowest of our citizenry.

This finding of massive illicit capital outflow for Malaysia is the strongest confirmation of sustained capital flight from the country during the past decade, even if one wants to dispute the definition of “illicit” used. What is especially worrying is that the outflow has tripled in the short period of eight years from 2000-2008

There can be no dispute that a major part of this outflow is due to financial gains accumulated through corruption, kickbacks and other illegal means. How much is due to various causes can be disputed and can only be determined by a thorough investigation such as through the establishment of a Royal Commission to determine the extent and the reasons for the outflow. Without an independent panel or Commission looking into this and having access to banking and other financial data, there will be no end to finger pointing and needless speculation as to who are the parties implicated in these outflows. Continue reading “Investigate Why Malaysia Has Attained World Ranking in Illicit Outflows”

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Explain RM888b illegal funds leak

by Lim Guan Eng
23.1.2011

DAP wishes to extend our congratulations to the Royal Malaysian Navy for its success in capturing 18 Somali pirates and preventing their attempted hijack of a Malaysian chemical tanker near the Gulf of Aden. This successful operation in saving the tanker and their crew without any loss of life inspires confidence in a professional navy that justifies the people’s faith.

Whilst our navy boys are heroes for their successful capture of Somali pirates in international waters, DAP regrets that land “pirates” are allowed to roam freely in Malaysia. The US-based financial watchdog Global Financial integrity (GFI) reported that illicit money outflows from Malaysia tripled to US$68.2 billion (RM208.1 billion) in 2008, from US$22.2 billion in 2000.

For the period 2000-2008, China tops the chart among the world’s exporters of illicit capital with a whopping US$2.8 trillion of outflows, followed by Russia (US$427 billion), Mexico (US$416 billion), Saudi Arabia (US$302 billion) and Malaysia (US$291 billion or RM888 billion). Other Asian countries with high illegal capital flight are Philippines ($109 billion), Indonesia ($104 billion) and India ($104 billion).

Clearly illegal capital flight from Malaysia of RM888 billion over 9 years from 2000-8 has dwarfed legitimate capital inflows into the country. GFI defines illicit financial flows as generally involving the transfer of money earned through illegal activities such as corruption, transactions involving contraband goods, criminal activities, and efforts to shelter wealth from a country’s tax authorities.

GFI said that poor governance, pervasive corruption and rising income inequality as contributory factors, making serious allegations that even GLCs such as Petronas could probably be driving illicit flows. This is a devastating indictment of the lack of enforcement, rule of law and a culture of corruption that has eroded confidence in our capital market. Continue reading “Explain RM888b illegal funds leak”

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Malaysia is world’s No 5 in illicit outflows

Jan 20, 11
Malaysiakini

Malaysia is among the countries which registered the highest illicit financial outflows over a period of nine years in the last decade.

According to a ground-breaking report by Washington-based financial watchdog Global Financial Integrity (GFI), money flows out of Malaysia have more than tripled from 2000 to 2008.

The outflow from Malaysia in 2000 was RM67.7 billion (US$22.2 billion). Eight years later, this has ballooned to RM208 billion ($68.2 billion).

The report warned that the sharp increase of capital flight in Malaysia is “at a scale seen in few Asian countries”.

It said that it was difficult to point out the reasons behind this massive outflow of illicit capital – estimated at RM889 billion (US$291 billion) between 2000 and 2008 – without carrying out an in-depth study of Malaysia, which is outside the scope of the report.

“It is clear however that significant governance issues affecting both the public and private sectors have been playing a key role in the cross-border transfer of illicit capital from the country.

“For instance, there are reports in the Malaysian media that large state-owned enterprises such as Petronas could probably be driving illicit flows.”

The financial watchdog said that its research has indicated that political instability, rising income inequality and pervasive corruption are some of the structural and governance issues that could be driving illicit capital from many developing countries. Continue reading “Malaysia is world’s No 5 in illicit outflows”

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Investors shun Malaysia as emerging market outlook cools

By Yow Hong Chieh
The Malaysian Insider
January 20, 2011

KUALA LUMPUR, Jan 20 — Global investors are continuing to avoid Malaysia as fund managers trim investments in emerging markets over concerns that China’s economy will slow this year.

Bank of America Merrill Lynch said in a note this week that Malaysia remained a “big underweight” for investors in emerging markets, with its underweight rating increasing from 46 per cent in December to 55 per cent in the first month of 2011.

An underweight call is a recommendation for investors to reduce their investments in a particular security, asset class or, in this case, country.

Malaysia slipped from 14th place in December to dead last this month among the 15 countries studied by the investment bank, despite the roll out of big ticket Economic Transformation Programme (ETP) projects and speculation that snap polls will be held later this year.

Topping the list was strongly overweight Russia, followed by Thailand, Brazil, Turkey, South Korea, China, Indonesia and Mexico. Other emerging market underweights were Poland, Taiwan, Colombia, India, South Africa and Chile.

Malaysia’s underweight call also comes at a time when fewer investors are looking to increase investments in emerging markets due to worries that China’s “eroding” economy will have a knock-on effect on the market in Asia. Continue reading “Investors shun Malaysia as emerging market outlook cools”