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PM: Economy poised to experience strong growth

noreply@blogger.com (Unknown) — Thu, 25 Feb 2010 07:36:00 +0000

PUTRAJAYA: The worst is over for the Malaysian economy and it is poised to experience strong growth this year, Datuk Seri Najib Tun Razak said.

The Prime Minister, who announced that the gross domestic product (GDP) for the fourth quarter of last year grew by 4.5%, said the country had recovered from the economic crisis.

He said 2010 would be a year to be bullish about as the GDP growth was an indication of better times.

“Barring unforeseen circumstances, we can safely say we have recovered from the crisis and should look forward to strong growth for 2010,” he added.

Good news: Najib getting ready to speak to reporters after announcing the country’s economic performance in Putrajaya Wednesday.

Asked whether the worst was over, Najib replied: “Yes.”

Najib, who is also Finance Minister, was speaking to reporters after announcing Malaysia’s economic performance in the last quarter of last year.

The growth was attributed to the strengthening domestic and external demand.

For the whole of last year, however, the economy contracted by 1.7%, but this was lower than the projected 3% contraction.

The first three quarters of last year saw the economy contracting by 6.2% in the first quarter, 3.9% in second quarter and 1.2% in third quarter.

Najib expressed confidence that this year’s GDP could reach 5%, higher than the 4% projected.

“We will work towards generating confidence, speedy implementation of projects and encouraging the private sector to invest.

“This and with higher consumer confidence, we should make this a good year in terms of our economic performance,” he said.

He pointed out that one of the main reasons why the Government was able to spend RM1bil a month on projects last year was because of a special monitoring unit that made sure all programmes planned under the two stimulus packages were implemented speedily.

“This is one of the reasons why we managed to achieve more than expected in terms of our economic recovery,” he added.

To date, over 113,000 projects under the two stimulus packages have been or are being implemented, involving a total value of RM17bil. Of that, the Government has made payments totalling RM13.9bil.

Source: TheStar

Getting to grips with GST – what you should know

noreply@blogger.com (Unknown) — Thu, 25 Feb 2010 05:13:00 +0000

TAX INSIGHTS By KANG BENG HOE

THE introduction of the goods and services tax (GST) due mid-2011 will represent a profound change in our tax system in recent decades.

While GST, also known as value-added tax, is as a whole relatively simple compared with the income and corporate tax, some of its features and rules are anything but simple.

This poses a challenge to officials who are charged with bringing on the tax – to get businesses and consumers (i.e. the public) to get to grips with or at least have a broad understanding of how the tax works.

That there are clear misconceptions amongst many can be discerned from the various letters written to the press expressing negative sentiments.

The answers to the following broad questions will assist in the basic understanding of the GST.

What is GST?

It is a tax on consumption, an indirect tax charged on imports and on the value added to goods and services sold by one business to another, or to the end consumer.

It is the buyer who pays the tax, not the seller. GST replaces the current sales and service tax but not the income tax or customs import duty or excise tax. It will be broad-based, covering a comprehensive range of business transactions.

What is value added?

It is basically the mark-up in arriving at the selling price of a product/service. The selling price is made up of the cost of materials and purchases plus profit charged to customers.

How will the tax be charged?

GST will be charged at 4% of the value added to goods/services at each stage of production/ distribution. This rate, indicated by the Finance Minister, is known as the standard rate.

How does GST differ from the sales tax which it will replace?

Sales tax is a single stage tax whereas GST is multi-stage (i.e. the latter is levied at every value added stage in the distribution chain). Unlike the sales tax, GST has no cascading effect and does not lead to price distortion.

What are the benefits from changing to the GST system?

It is widely considered as a more efficient system. More tax can be collected with a lower rate because it is broad based. The system of issuing invoice for input tax credit operates as an auto control which could reduce tax evasion and thus increase income tax collection.

Who can charge GST?

A business with sales in one year amounting to RM500,000, as indicated by the Finance Minister, must register to charge GST. A business with sales amounting to less than this threshold may volunteer to register to charge GST and claim input tax credit (see paragraph below).

GST on imports

Businesses which import goods and services will have to pay GST at the time of importation.

GST on domestic products

Businesses supplying goods and services will pay GST within one month following the end of the taxable period. This taxable period can be one, three or six months depending on how the business is “classified” by the GST authorities.

Final consumers will pay the tax upon purchasing the taxable goods and services. Not all goods and services will be charged to tax. They will be classified into three main categories viz: taxable, zero-rated and exempt.

Taxable goods and services

Consumers will be charged GST at the established rate of 4%. A GST registered business will charge GST at the same rate on the sale of taxable goods and services and pay GST on its purchases.

Zero-rated goods and services

The final consumer will pay GST at a rate of 0%. This essentially means that no tax is charged on consumers on the item. A GST registered business will be able to claim a credit for any GST paid on its inputs.

Exempt goods and services

No tax is charged on the consumer. Unlike the zero-rated goods, the GST registered business is not entitled to claim any input tax credit on purchases.

How will GST affect you, the consumer?

Since the current sales and service tax are at rates exceeding the GST proposed rate of 4%, the final prices of these goods and services are not expected to see an increase.

The prices of goods and services which currently have little or no taxes will increase slightly. Some goods and services will be exempted from GST and others taxed at a zero rate.

The latter category will cover essential goods and services; the measure is to shelter the lower income group from the effect of the tax. The list of exempt and zero- rated items has yet to be released.

Businesses in general need to understand the detailed rules and consider how these would apply to their own business operations.

Failure to do so may result in the loss of the set-off or credit for input taxes suffered and/or being exposed to onerous penalties for non-compliance with the law.

SC to amend guidelines for unit trusts

noreply@blogger.com (Unknown) — Wed, 24 Feb 2010 06:48:00 +0000

By DANNY YAP

KUALA LUMPUR: The Securities Commission (SC) will soon be making amendments to the guidelines for the unit trust industry to allow for greater flexibility and choices to meet investors’ needs, said chairman Tan Sri Zarinah Anwar.

She said the unit trust industry was developing rapidly and that there was a need to innovate and find new ways of doing things.

“Investors also need more choices. The idea behind the amendments is to allow greater flexibility in terms of offering more choices to investors to meet their needs,” Zarinah told reporters after the Edge-Lipper-Malaysia Fund Awards 2010 presentation yesterday.

The SC chief said that among the key changes was allowing multiple currencies for unit trust funds.

“In the new guidelines the Securities Commission will allow offerings to be made in multiple currencies to encourage unit trust funds to be distributed overseas.

“It will help facilitate greater investment, say, by foreign investors who may find it difficult to cope with the exchange rate vagaries. So if they can invest in their own currencies the changes will then facilitate greater investments,” Zarinah said.

On the timeline for the amendments, she said: “It’s being worked on and as soon as we get the amendments ready the Securities Commission will be publishing it.”

On recent cases of corporate high-flyers that did not abide by the Mergers and Takeover Guidelines to take listed companies private, she said the SC would review the situation.

“If there is a need to change then the revision will be made but with any changes we will consult the stakeholders involved and make it public as soon as we are ready,” she said.

On the unit trust industry, Zarinah said that in December 1993, the country had 43 funds with a total net asset value (NAV) of RM28.1bil but by end-2009, the industry had grown to 541 funds with a total NAV of RM191.7bil.

“The NAV makes up 19.18% of the capitalisation of our stock market,” she noted, adding that there were now 14 million account-holders in a variety of fund categories.

At present, there are 201 funds with exposure to foreign investments representing 10.17% of the total industry NAV.

“The net sales of RM24.8bil for the industry in 2009 represented an amount close to the entire NAV of the industry as at Dec 21, 1993,” she said.

Zarinah said by all accounts, Malaysia’s unit trust industry had done extremely well.

“The challenge now is to sustain this performance and develop the depth and breath of the industry. Supporting this effort is high on the Securities Commission’s agenda,” she said.

Zarinah said one of the top challenges ahead was assuring investors that their investments would receive the appropriate levels of protection and oversight.

Another major challenge was to provide a facilitative regulatory framework for unit trust funds to operate, she said.

Should one invest in bonds?

noreply@blogger.com (Unknown) — Wed, 24 Feb 2010 06:44:00 +0000

Personal Investing - By Ooi Kok Hwa

MOST retail investors in Malaysia may not be familiar with bond investing. We may have come across bond funds in our unit trust funds investment, but, not many really understand why and how to invest in bonds.

A bond is basically a loan to government units or corporations that issue the bond. When you invest in bonds, you become the lender to the issuers. In return, you will periodically be repaid a pre-specified percentage of interest for the use of your money and when the bond reaches the maturity date, the principal that you invested earlier will be paid back to you.

For example, if you have invested in Bank Negara’s Bond Simpanan Merdeka 2009, which has three-year tenure and pays 5% of interest per year, you will receive a stream of interest income on a monthly basis and at the end of the third year, you will also get your principal back.

However, bond funds differ from individual bonds in many ways. While the interest income from the fund changes over time, the interest payments from individual bonds are usually fixed.

As a bond fund is made up from a pool of bonds, it usually does not have a fixed maturity and its yield is based on current income relative to its net asset value (NAV) while individual bonds are quoted in current yield or yield-to-maturity. In addition, bond funds normally make interest distributions monthly or quarterly, whereas individual bonds pay interest semi-annually.

The main purpose of investing in bonds or bond funds is to provide portfolio diversification, which in effect, helps lower your overall investment portfolio risk.

In general, bond funds have lower risk compared with equity investment and normally, bonds have low correlation with equity investment. While equity tends to perform well in high inflation rate and high interest rate environment, bond performance is unsatisfactory under such circumstances.

However, when the economy is bad and equity is not performing well, a lower interest rate tends to spur the economy, and at the same time, benefits bond returns. So, in most periods, it has negative correlation with equity interest.

The price movement of a bond is driven by a few factors. However, the main determinant is the interest rate. When the prevailing interest rate goes up, the price of the outstanding bonds will fall and vice versa. Therefore, the highest risk in bond investing is also the interest rate risk.

Duration is a measure of interest rate risk, which is defined as the weighted-average time it takes for a bond to pay back its interest and principal. By taking the duration of a bond or a bond fund times the change in interest rates, you will get the approximate percentage change in the bond’s price or the bond fund’s net asset value.

For example, if a bond fund’s duration is 10 and interest rates fall (or rise) by 0.5 of 1%, the fund’s NAV will increase (or decrease) by about 5%. As the duration of a bond is its average maturity, it measures interest rate risk.

When the inflation rate of a country increases, it will also result in higher interest rates to counter the inflationary pressure. Due to the recent global financial crisis, countries like China implemented stimulus packages, which in turn caused these countries to face potential inflationary pressure from higher asset prices.

Given that some economists have predicted that our interest rates may go up again, it is safer to buy bond funds with shorter duration because the bond funds will suffer a lower drop in prices with higher interest rates.

Other than interest rate risk, investors must also be aware of any potential credit risk of the bonds held by the bond funds, which is the possibility of the issuer failing to meet its obligations under the indenture or the risk of a bond being reclassified as a riskier security by credit rating agency.

It is a major problem during economic crisis or financial crisis, especially in the case of corporate bonds. However, given that our economy is currently at its recovery stage, credit risk may not a major issue.

As investors, before we invest in any bonds or bond funds, we must at least make the effort to understand the basic characteristics of the bonds that we are going to put our money in. Even though it is said to be safer than equity investments, there are still certain risks inherent in bonds investments that we must be aware of.

Dr M: Don’t Bail Out Failed Banks

noreply@blogger.com (Unknown) — Fri, 03 Apr 2009 08:47:00 +0000

By CHOI TUCK WO

LONDON: Tun Dr Mahathir Mohamad has called for the closure of banks that caused the global financial crisis instead of bailing them out.

The former prime minister lambasted the West for pumping in billions of dollars to resuscitate these “failed institutions”.

He said they should be allowed to go under as bankers were rewarding themselves with fat bonuses rather than be punished for their inefficiencies.

“Let’s start new banks. We don’t need to have banks with those names anymore as they are a disgrace,” he said in his talk ‘The Alternative G20 Agenda: Real Financial Fairness’ at the Royal Commonwealth Society here on Wednesday.

More than 200 people attended the event on the eve of the G20 summit.

In his usual hard-hitting style, Dr Mahathir said there should be no attempt by governments to rebuild institutions which have failed.

“If they must dole out money, give it to the people who suffered actual losses due to the banks’ failure, but not to the bankers,” he said.

He questioned the logic of rewarding bankers who caused the economic crisis, saying those who created trouble were normally put in prison.

Dr Mahathir also took a dig at hedge funds, saying their borrowings should be limited and not be 20 or 30 times more than the investments.

“Imagine if a hedge fund were to borrow US$30mil and trades on US$20mil based on a US$1mil investment, the profits would be far bigger than that of the original investment,” he said.

He said a stop should be put in creating money out of nothing, adding everyone must come clean instead of obtaining false wealth through shuffling papers. “Most of the wealth comes from playing around with money. You can sell currencies and make tons of money,” he said, adding they were not derived solely from producing goods and services anymore.

He called for a review of the international monetary, financial and banking system which had suffered a systematic collapse due to gross abuses.

Dr Mahathir said the global community could elect people to represent the differing economies and work together in curbing financial abuses.

“If we’re going to be fair – real financial fairness – we should give everybody a say in the formulation of a new banking, financial and monetary system.”

G-20 Leaders Blacklist Malaysia As One Of 4 Tax Havens

noreply@blogger.com (Unknown) — Fri, 03 Apr 2009 08:45:00 +0000

LONDON: Four nations were blacklisted as uncooperative tax havens after G-20 leaders declared the age of banking secrecy was over and said they would no longer tolerate shady havens draining away badly needed tax revenue.

At the request of the Group of 20 summit of rich and developing nations, the Organization for Economic Cooperation and Development named the Philippines, Uruguay, Costa Rica and the Malaysian territory of Labuan as the worst offenders, saying they had refused to adopt new rules on financial openness.

Leaders also said Thursday that nations that refuse to exchange tax information could in the future face tough sanctions - including the withdrawal of financing by the World Bank or International Monetary Fund.

"The time of banking secrecy has passed," French President Nicholas Sarkozy said following the summit. "Everyone around the table wants an end to tax havens. Everyone knows we need sanctions."

The announcement reflects mounting concern that banking secrecy in tax havens has helped to worsen the economic crisis by disguising the true value of some global assets.

Anti-poverty activists say such places provide corrupt officials places to stash illicit funds, often depriving poor nations of needed resources.

The OECD has divided countries into three categories: those who comply with rules on sharing tax information, those who say they will but have yet to act and nations which have not yet agreed to change banking secrecy practices.

Switzerland and Liechtenstein, which both have strong banking secrecy traditions, said last month they would adopt international rules on tax cooperation and were ready to comply with G-20 demands.

Liechtenstein, Switzerland's tiny Alpine neighbor, said it has already met with British officials to prepare for the new standards. Monaco said earlier that it would be more transparent with foreign tax authorities.

In return they were spared the fate of being blacklisted but were left in a gray area of countries that still have to implement their commitment to accept new information-exchange standards. China supported the blacklisting, but would not agree to have two territories, Hong Kong and Macau, classified as uncooperative tax havens.

Potential sanctions for transgressors include extra audits of those who use tax havens and curbs on tax deductions claimed by businesses using the territories.

In their communique, leaders said they may consider further penalties in their bilateral relations with tax haven territories. German Chancellor Angela Merkel said Brown and President Barack Obama played a key role in pushing for a crackdown on tax havens.

At least 35 offshore tax havens, from Britain's Channel Islands to the Cayman Islands in the Caribbean, are under increasing pressure to provide more information to international authorities to prevent people from evading taxes or hiding income by shifting money to such places.

Stephen Timms, financial secretary to the British Treasury, said a culture of banking secrecy had worsened global economic problems.

"That lack of transparency - that opaqueness - has contributed to the severity of the problems we are seeing in the world economy at the moment," he said. - AP

Najib Sworn In As Malaysia's Sixth Prime Minister

noreply@blogger.com (Unknown) — Fri, 03 Apr 2009 08:40:00 +0000

KUALA LUMPUR: Datuk Seri Najib Tun Razak was sworn in as Malaysia’s sixth prime minister Friday, taking over from Datuk Seri Abdullah Ahmad Badawi who stepped down after leading the country for over five years.

Najib 55, took his oath of office before Yang di Pertuan Agong Tuanku Mizan Zainal Abidin at Istana Negara.

Dressed in a black baju Melayu complete with sampin, Najib arrived at the palace, accompanied by his wife, Datin Seri Rosmah Mansor. Together they entered the Balairong Seri at 10am, followed by Abdullah and his wife, Datin Seri Jeanne Abdullah.

Najib signing his letter of appointment as Prime Minister.

A total of 319 guests, including former prime minister Tun Dr Mahathir Mohamad and his wife, Tun Dr Siti Hasmah Mohd Ali, attended the historic event.

The ceremony, steeped in tradition, began when Tuanku Mizan and Raja Permaisuri Agong Tuanku Zahirah entered the throne room at 10.05am and the national anthem was played by the Malaysian Armed Forces band.

After taking his oaths of office, loyalty and confidentiality, Najib signed the four instruments of appointment, followed by the reading of the doa selamat.

The instruments of appointment were then signed by Court of Appeal President Tan Sri Alauddin Mohd Sheriff as witness and handed over to Chief Secretary to the Government, Tan Sri Mohd Sidek Hassan.

At the same ceremony, Abdullah was conferred the nation’s highest award, the Seri Maharaja Mangku Negara (SMN), while Jeanne received the Seri Setia Mahkota (SSM) by Tuanku Mizan. Both awards carry the title Tun.

The handing over of the prime minister’s duties from Abdullah to Najib is scheduled to take place at 4pm at the Prime Minister’s Office in Putrajaya.

Najib was born in Kuala Lipis, Pahang, on July 23, 1953, and is the eldest son of the late Tun Abdul Razak Hussein, the nation’s second prime minister, and Tun Rahah Mohd Noah.

His appointment is most significant in the country’s history in that this is the first time that a prime minister’s son is holding the post.

His leadership capability began to surface when he was elected Pekan Umno division Youth head in 1976 and he went on to become the country’s youngest Member of Parliament at the age of 22 when he won the Pekan seat unopposed in a by-election following his father’s death.

He then went from strength-to-strength in politics and Government to reach the pinnacle as Umno president and Malaysia’s prime minister. - Bernama

Highlights Of Pak Lah Premiership

noreply@blogger.com (Unknown) — Fri, 03 Apr 2009 08:29:00 +0000

2003
OCT 31: Datuk Seri Abdullah Ahmad Badawi takes over as Malaysia’s fifth prime minister.

DEC 11: The controversial RM14.5bil railway double-tracking project is postponed.

2004
JAN 6: Datuk Seri Najib Tun Razak is named Deputy Prime Minister.

MARCH 21: After the shortest campaign period in history, Barisan Nasional wins a landslide victory in the 11th General Election, taking 198 out of 219 parliamentary seats. Barisan also recaptures Terengganu from PAS.

MARCH 27: Abdullah announces his first Cabinet with 14 new faces and three new ministries: Natural Resources and Environment, Federal Territories and Higher Education.

APRIL 23: Abdullah launches the five-year National Integrity Plan (NIP) aimed at promoting an accountable and corrupt-free society.

JULY 18: Abdullah wins the Umno presidency unopposed.

SEPT 10: Abdullah presents his first Budget as head of the Government and Finance Minister.

SEPT 23: Abdullah launches the Islam Hadhari (Civilisational Islam) concept in his opening address at the Umno general assembly.

OCT 31: Pak Lah completes his first year as Prime Minister and identified his biggest challenge: the need to change the mindset of the people in implementing projects and decisions.

DEC 26: Several states are struck by the Indian Ocean tsunami that was triggered by a massive earthquake off the coast of Sumatra. Pak Lah cancelled his leave to return to the country.

2005
FEB 2: Abdullah talks of building Malays into “towering” personalities. He said the towering Malays would be well-rounded people who have developed a high intellect and value system, a successful career, good economic standing and a well-respected culture and religion.

APRIL 24: Malaysia and Singapore sign a Settlement Agreement, bringing an end to the dispute over the republic’s land reclamation in the Straits of Johor.

MAY 13: The Royal Commission to Enhance the Operation and Management of the Royal Malaysia Police recommends that an Independent Police Complaints and Misconduct Commission be set up to oversee the force and deal with misconduct.

JULY 21: Malaysia removes its currency peg to the US dollar for a managed float against a basket of trade-weighted currencies.

OCT 20: Abdullah’s wife Datin Paduka Seri Endon Mahmood, 64, dies after a long battle with breast cancer.

2006
APRIL 12: Malaysia cancels the bridge to replace the Causeway.

OCT 22: Abdullah and Dr Mahathir meet for a face-to-face meeting for the first time since the latter’s controversial criticism of the Prime Minister’s policies.

NOV 4: The South Johor Economic Region, officially named as Iskandar Development Region, was launched at Danga Bay in Johor Baru.

2007
JAN 16: Abdullah launches the National Education Blueprint 2006-2010, a comprehensive fiveyear plan that aimed to level the playing field in education for all Malaysians.

FEB 7: A special task force called Special Task Force to Facilitate Business, or Pemudah, to smooth out kinks in the government delivery system and cut red tape, is formed.

MARCH 31: Abdullah tables the RM220bil Ninth Malaysia Plan in Parliament.

MAY 21: Abdullah announces a pay increase of between 7.5% and 35% for the country’s more than one million government employees effective July 1.

JUNE 9: Abdullah marries Datin Seri Jeanne Abdullah.

JULY 30: Abdullah launches the RM177bil Northern Corridor Economic Region.

AUG 27: Abdullah launches the National Higher Education Strategic Plan and the National Higher Education Action Plan 2007-2010 aimed at producing better quality graduates.

SEPT 25: The Government announces the formation of an independent panel to check the authenticity of a video clip purportedly showing lawyer Datuk V. K. Lingam brokering the appointment and promotion of judges with a senior judge.

OCT 29: Pak Lah launches the East Coast Economic Region in Kuala Terengganu.

NOV 25: The Hindu Rights Action Force holds a demonstration, forcing the police to use tear gas and water cannons to disperse the crowd.

2008
FEB 11: Abdullah launches the Sarawak Corridor of Renewable Energy in Bintulu.

FEB 13: Parliament is dissolved to pave the way for the 12th general election. Nomination day was fixed for Feb 24 and polling day on March 8.

MARCH 8: Barisan gets its worst election results in history, losing five states to the Opposition and its two-thirds majority by winning only 140 parliamentary seats out of 222.

MARCH 10: Abdullah is sworn in as Prime Minister for a second term.

MARCH 14: Datuk Dr Md Isa Sabu is announced as the new Perlis Mentri Besar. Former MB Datuk Seri Shahidan Kassim had been Barisan’s choice.

MARCH 18: Abdullah unveils a smaller Cabinet.

MARCH 22: Datuk Ahmad Said is announced as the new Mentri Besar of Terengganu instead of Datuk Seri Idris Jusoh, which was Barisan’s original choice.

APRIL 17: Abdullah announces a proposal to form a Judicial Appointments Commission and the giving of goodwill ex-gratia payments to six judges who were sacked during the 1988 judicial crisis.

MAY 9: The findings of the Royal Commission on the controversial Datuk V.K. Lingam showed that the clip was authentic. It identified former Chief Justice Tun Ahmad Fairuz Sheikh Abdul Halim as the person talking to Lingam on the telephone.

MAY 23: The International Court of Justice rules that Singapore has sovereignty over the disputed Pulau Batu Puteh while Malaysia owns Middle Rock.

JUNE 6: Abdullah announces costcutting measures, aimed at saving RM2bil.

JULY 10: Abdullah announces that he will step down as Prime Minister in June 2010 and hand over power to Najib.

SEPT 10: Then Umno vicepresident Tan Sri Muhyiddin Yassin calls on Abdullah to rethink his transition plan to step down by 2010 as the timeframe was too long.

SEPT 17: Abdullah and Najib swap portfolios as part of the transition plan. Abdullah is the new Defence Minister while Najib has taken over the Finance portfolio. Sabah Progressive Party president Datuk Yong Teck Lee also announces that his party is pulling out of Barisan Nasional but will not be joining Pakatan Rakyat.

OCT 8: Abdullah says he will step down as Prime Minister and Umno president in March and support Najib to take over.

DEC 17: The Dewan Rakyat passes the Judicial Appointments Commission Bill.

2009
MARCH 1: The Malaysian Anti- Corruption Commission (MACC) comes into being.

MARCH 10: The Government unveiles a fiscal stimulus package amounting to RM60bil, the largest ever, with an aim to prevent the country from slipping into a recession.

MARCH 23: The Witness Protection Bill is passed by the Dewan Rakyat.

APRIL 2: Abdullah has an audience with Yang di-Pertuan Agong Tuanku Mizan Zainal Abidin to seek consent to resign as Prime Minister and for Najib to take over.

Source: TheStar

Pak Lah, We Thank You

noreply@blogger.com (Unknown) — Fri, 03 Apr 2009 08:19:00 +0000

The Stars Say . . .

Today, a new chapter begins for Malaysia, and for Datuk Seri Abdullah Ahmad Badawi.

A man who does not care too much for pomp and pageantry, Pak Lah’s stewardship of the country as Prime Minister from Oct 30, 2003 until he officially stepped down yesterday, will be judged differently in the years to come.

The media may be a chronicler of instant history but it is the historian who will have the perspective to look at both the positive and negative sides of Pak Lah’s ledger.

Pak Lah will be the first to admit that he has his flaws.

“Leaders are mere mortals,” he once said. “And mortals are imperfect.

“In seeking to better himself, man needs to be advised and to accept criticism. Therefore, advice and criticism should be constructive and rational, and offered with honesty and sincerity,” he said.

No one will dispute that the democratic space for open discussion of many issues rose many notches under Pak Lah.

Spurred on by the proliferation of new media technology, Pak Lah became the first Prime Minister to openly have to endure relentless attacks on both his policies and his personality.

Not all was sincere or honest. In fact, many bordered on slander and destruction.

But Pak Lah, being the man of the people, did not do what lesser leaders might have done. He kept the space open.

Pak Lah ascended to the highest political office in the land knowing full well that Malaysians had not had a change of leadership for 22 years. The shadow of the previous administration loomed large but his message struck a chord among the people.

He went to the people in 2004 for a mandate and we gave him an overwhelming landslide. It was to be the high point of his political career.

But the vagaries of politics are such that when he went back to the people in March 2008, the verdict turned the other way. It was, as he puts it, the lowest point of his political career.

Although there were many factors beyond his control, quite a number were probably the direct result of the actions of the administration he led.

The hope envisioned by his promises was a little too late in coming.

It is a testimony to the democrat in him that Pak Lah accepted the verdict of the people. Though the political landscape has changed tremendously, and remains hot to this day, he never resorted to any extra-constitutional measures to move things to his advantage.

It would be wrong to judge Pak Lah solely on his years as Prime Minister. He is, in fact, a man born to serve the country and he did. Pak Lah’s service to the nation is long and extensive.

As a politician, Pak Lah never used racial and religious issues to stoke the fires that cause disunity among the people. He was just too nice and too much of a statesman to want to play to the gallery.

He always put nation above self. And he never wavered from trying his best to be truly a Prime Minister for all Malaysians.

Yes, today marks a new chapter for the country. This is a defining moment in our history. It is also a poignant moment for Pak Lah.

Now that the burden of office that he has served so sincerely for the past 1,918 days has been lifted, we want to wish him well.

We pray he will enjoy good health and a peace that transcends all that the world can promise.

We, the people, thank you, Pak Lah.

Stronger Ringgit Seen By Year-End

noreply@blogger.com (Unknown) — Wed, 01 Apr 2009 03:49:00 +0000

Move by US to print money will increase supply and weaken the greenback

KUALA LUMPUR: The ringgit is expected to strengthen to 3.50 against the US dollar by year-end from between 3.60 and 3.65 currently.

According to Maybank Investment Bank Bhd chief economist Suhaimi Ilias, the US dollar is expected to weaken as the US government would have to find means to finance its huge fiscal deficit this year.

“It is highly likely they would have to print money, which is what they have started to do.

“The increase in supply would weaken the US dollar,” he said on the sidelines of the Financial Planning Seminar organised by Permodalan Nasional Bhd yesterday.

Meanwhile, the local banking sector is expected to weather the crisis without incidence, as stress tests conducted recently showed that it is fundamentally sound, according to Suhaimi.

“Our banks registered healthy profits and are well capitalised,” he added.

However, he expects non-performing loan (NPL) ratio to increase to 7% to 8% this year from 4% last year.

“This forecast figures are not bad, given the current situation, compared with over 20% NPL ratio registered during the 1997 economic crisis,” he said.

On a positive note, Suhaimi noted that electrical and electronic manufacturing companies in Penang had indicated that the plunge in orders since October last year appeared to have levelled off last month.

He also said Malaysia’s economy would likely recover from technical recession by the fourth quarter of this year, backed by the speedy implementation of the fiscal stimulus package introduced by the Government recently.

“I would expect the decline in the economy to be the worst in the first quarter of this year. In the second and third quarters, even if the economy were to contract, it would be at a smaller pace,” he said.

He also expected the overnight policy rate (OPR) to fall by another 50 basis points by April 30. The OPR is currently 2%.

Source: TheStar

Malaysia Faces Risk Of Prolonged Slowdown

noreply@blogger.com (Unknown) — Wed, 01 Apr 2009 03:46:00 +0000

KUALA LUMPUR: Malaysia’s economy is not facing the risk of further downside in growth but rather the risk of a prolonged slowdown, said ANZ Banking Group Ltd chief economist for Asia Paul Gruenwald.

“We are not worrying about things getting worse, we worry about when the recovery will come,” he said, pointing out that the Malaysian economy would recover only after the economies of advanced nations had revived.

He expected the US and European economies to recover in late 2009 or early 2010.

Speaking after his talk on The Economic Outlook For Malaysia and The Asian Region In 2009 yesterday, Gruenwald projected the country’s gross domestic product (GDP) to grow by 1% and 2.5%-3% this year and in 2010 respectively.

He said this year’s slow growth would be supported by domestic consumption, as the manufacturing and export sectors would continue to be weak.

“However, we don’t expect a growth trend, which will be 4% to 5%, until the end of 2010 or early 2011,” he said.

On whether China’s economy would be able to save Asian countries, Gruenwald said even if China could restore its growth to 8%-9% this year, the benefit to the rest of the region was likely to be limited.

“Exports from the rest of Asia to China appear equal to those to the US. However, if you factor in China’s role in the processing trade, exports to China from the rest of the world look modest,” he said.

He added that China comprised half of Asia’s GDP and most of the country’s economic growth came from investment, domestic consumption and exports.

With the collapse of demand from the US and Europe, the only pillar left supporting Asia’s growth was consumption, he said.

Gruenwald said the US dollar would remain on an uptrend as the global economic crisis continued, but the momentum should slow down as uncertainty dissipated.

“We are going to see general Asian currencies weaken against the US dollar. When the crisis is resolved and recovery begins, we will see the US dollar start to depreciate.

“Until that time, (we expect) the peak of 3.8 for the ringgit in the third or fourth quarters of this year,” he added.

Source: TheStar

Market To Remain Weak

noreply@blogger.com (Unknown) — Wed, 01 Apr 2009 03:43:00 +0000

By Fintan Ng

KUALA LUMPUR: The local bourse will remain weak ahead with volatile trading.

In the region, the Bank of Japan’s Tankan business survey showed confidence among the country’s biggest manufacturers fell to minus 58 in the first three months to March compared to the previous quarter, which fell to minus 24.

In South Korea, the ministry of knowledge economy said today that the country’s exports fell for a fifth straight month in February on weak demand from the US and Japan while imports dropped 36%.

HwangDBS Vickers Research Sdn Bhd said in a report that investors would have to exercise judgement on whether what they see or hear “is for real or just a false event”.

OSK Research Sdn Bhd analyst Shin Kao Jack said the market would remain bearish in the near-term. “We’re still eyeing the 835-point level as the immediate support followed by the 800/801-point level,” he added.

Meanwhile OSK Research head Chris Eng said the market would remain volatile in April with early strength on the handover of the Prime Minister’s position giving way to uncertainty after the three by-elections and selling pressure ahead due to the new rights shares of Maybank and TM International.

At 9.15am, the KLCI was 0.48% higher at 876.77 while Singapore’s Straits Times Index was down 0.21% to 1,696.40.

Tokyo’s Nikkei 225 rose 1.76% to 8,252.02, Taipei’s Taiex Index gained 1.40% to 5,283.87 while Seoul’s Kospi Index added 1.11% to 1,219.65.

Meanwhile, at Bursa Malaysia, 61 counters were up, 25 were down and 53 others were traded unchanged. There were 29.05 million shares traded with a total value of RM24.81 million.

Among bank stocks, Maybank was 8 sen higher at RM3.94 while BCHB added 10 sen to RM6.95. Resorts was up 3 sen to RM2.17 and Genting added 6 sen to RM3.74.

Plantation stocks IOI Corp was up 4 sen to RM3.84, Sime was unchanged at RM5.70 and KL Kepong gained 10 sen to RM10.70.

TNB was up 5 sen to RM6.15 while Tanjong rose 30 sen to RM13.50.

Nymex crude oil was down US$1.25 to US$48.1 per barrel.

Spot Gold was US$1.83 higher at US$921.04 per ounce.

The ringgit was quoted at 3.649 to the US dollar.

Selangor Plans Legal Action If Water Tariff Raised

noreply@blogger.com (Unknown) — Wed, 01 Apr 2009 03:32:00 +0000

PETALING JAYA: The Selangor state government intends to seek legal action if the Cabinet today decides to increase the water tariff.

The state claimed that the necessary pre-requisites for a tariff increase by Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) under the concession agreement were unfulfilled.

“Material deficiencies were found in the last audit, the cumulative effect of which undermines the validity of the request by Syabas,” the state said in a press statement yesterday.

Complaints of Syabas’ “highly unsatisfactory” services were sent to the Ministry of Energy, Telecommunications and Water, together with a request that the concession agreement be terminated, it said.

However, the minister has yet to take action against Syabas and, instead, indicated that a licence would be issued to the concessionaire to continue its operation.

“This decision not only goes against the declared intention of the Federal Government to restructure water services in Malaysia but also the public interest,” it added.

It was reported that the ministry would propose to the Cabinet today on the tariff increase – as much as 31% for consumers in Selangor, Putrajaya and Kuala Lumpur.

Source: TheStar

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The Water Tariff hike is definitely going to burden the people if allowed. The chain reaction is unavoidable since we use water daily.

Cabinet To Decide Wed On Water Tariff Hike

noreply@blogger.com (Unknown) — Wed, 01 Apr 2009 03:28:00 +0000

By YEOW POOI LING

Minister will present Syabas proposal on hike to Cabinet

PETALING JAYA: The Cabinet will decide tomorrow whether the water distributor concessionaire in Selangor and Federal Territory of Kuala Lumpur can raise water tariff by as much as 31% on the same day as provided for in the concession agreements.

Energy, Water and Communications Minister Datuk Shaziman Abu Mansor said he would be presenting a proposal to the Cabinet on Syarikat Berkalan Air Sdn Bhd’s (Syabas) request for the tariff increase.

“The ministry has to present its opinion to the Cabinet on the proposed tariff hike and the quantum of increase that should be given to the concessionaire. The Cabinet will then decide,” Shaziman said after launching the France Asia Trade Forum yesterday.

This is despite the fact that the minister himself has the powers to either delay or give the nod for the tariff hike. Under section 114 of the Water Services Industry Act 2006 (WSIA2006), the minister is empowered to decide on water issues based on national interest.

Datuk Shaziman Abu Mansor showing the booklet

The original date for the increase in water rates was Jan 1 but this was postponed to April upon the state’s request pending negotiations over sale of water assets in Selangor to the Government under the national water restructuring exercise.

At the same function, the minister issued a booklet that stated the distribution of water for Selangor after the takeover of water assets by national water asset company Pengurusan Aset Air Bhd (PAAB) would remain status quo, with Syabas given a licensing from the regulator.

The other three water concessionaires – Puncak Niaga Sdn Bhd (PNSB), Syarikat Pengeluar Air Selangor Sdn Bhd (Splash) and Konsortium Abass Sdn Bhd – would be allowed to operate on authorisation basis.

The respective water operators for Malacca, Negri Sembilan and Johor also maintained their operations after PAAB took over their assets.

The Selangor government has till today to finalise the consolidation of the state’s water sector.

But it is unlikely to make any headway as the four concessionaries have not taken up its offer. Selangor had earlier offered RM4.6bil for the assets and RM1.1bil for the concessions.

PAAB is now in negotiations directly with the concessionaires in Selangor.

Shaziman said the federal government would not “force” the state to migrate to the new regime.

“If the state is unwilling, it would have to comply with the terms in the agreement signed between the federal, state and the concessionaires, which included the tariff increase,” he said.

Should the tariff increase be rejected by the state, it would have to bear the compensation cost as stipulated in the agreement, he added.

It was estimated that the compensation could amount to RM38mil a month.

Shaziman said the ministry was still open to work with the state to resolve the present issue.

“In fact, there is a proposal from the state on the matter and we have asked them to send a team to provide further details. If the proposal is beneficial to the people, we will accept it.

“So far, we have not received any response from the state,” he added.

Selangor Water Review Panel member Tony Pua told StarBiz that the state’s proposal remained similar with the past, which was to seek approval to lead the negotiation with the concessionaires pertaining to the water restructuring.

He said the potential tariff increase was questionable given that audit reports had revealed that Syabas failed to comply with several concession terms, including awarding contracts via open tender.

“Why keep the service provider when it has a poor track record in the last four years and broken some terms in the past?” Pua said.

MCA: Govt Can Acquire PLUS Stock To Avoid Triennial Toll Hike

noreply@blogger.com (Unknown) — Wed, 01 Apr 2009 03:11:00 +0000

KUALA LUMPUR: The MCA has proposed that the Government acquire shares in PLUS Bhd in the interest of the people, said party spokesman Wong Nai Chee.

By acquiring shares in PLUS, Wong said the Government would be able to establish policies and measures to ensure that the people were not burdened.

“The once-every-three-years toll hike can be avoided and any increase would be based on operational needs rather than contractual needs,” he told a press conference at Wisma MCA here yesterday,

He said the toll rate was set at 14.96 sen per kilometre and by 2038 the rate was expected to increase to 29.16 sen per kilometre.

“Toll charges from Kuala Lumpur to Penang, which cost RM86 one way, will increase to RM168 by 2038,” he said, adding that the MCA Youth’s Legal Affairs and Parliamentary Research Bureau had embarked on a project to study all the highway agreements.

He said a team in the party led by vice-president Datuk Seri Liow Tiong Lai would have a dialogue with the Works Ministry on the issue soon.

From the financial aspect, Wong said PLUS had been generating a profit of RM400mil to RM600mil yearly from 2004 to 2007.

“The Government compensated PLUS RM295mil and 307mil in 2003 and 2004 respectively. And for the year 2007 and 2008, the Government paid RM680mil and RM730mil in compensation respectively,” he said.

Source: TheStar

Call On The Works And Finance Ministers For A Toll-Free North-South Expressway By 2016 And Save Taxpayers RM14 Billion

noreply@blogger.com (Unknown) — Wed, 01 Apr 2009 02:58:00 +0000

Media Statement by DAP Ops RESTORE Team in Kuala Lumpur on Wednesday, 25th February 2009

The DAP Ops RESTORE (Restructure Toll Rates & Equity) Team would like to congratulate the Works Minister for first having declassified most of the highway toll concession agreements, and followed up with the removal of two toll plazas at the New Pantai Expressway (NPE) and the Sungei Besi Highway in the past two weeks.

We call upon the Works Minister to declare the compensation promised to these concessionaires for the abolition of the toll, for if the compensation involved is equivalent to the toll that would have been collected, then the joy for Malaysians will be short-lived.

In addition and more importantly, DAP Ops RESTORE Team calls upon both the Works and Finance Ministers to make the entire North-South Highway and its related concessions such as the ELITE, Butterworth-Kulim (BKE) and the Second Link Highways under PLUS Expressways Bhd completely toll free by 2016.

Following our team's consultations to date with our legal experts, investment bankers as well as the general public, we have developed a comprehensive, practicable and creative programme to return the highways to the people in the least possible cost, and shortest possible time without compromising the integrity of the financial markets.

Our proposal will:

- Impose no further increase in North-South Highway toll rates

- For example, a return KL-Penang journey will remain at RM86.60 today instead of RM115.30 in 2015 and RM168.80 by 2030.

- Create RM14 billion savings for Malaysians from 2009-2015

This will be the amount saved either (i) by Malaysians using the highway because of no further toll rate increases or (ii) in terms of compensation which would have to be paid by the Government to PLUS Expressways.

1. Continue to collect toll only until 2015

2. Incur no additional cost for the Malaysian Government or Malaysian tax-payers

Background information:

- PLUS is listed on Bursa Malaysia at a price of RM2.88 per share and a market capitalisation of RM14.4 billion (24th February)

- The Government of Malaysia, via Khazanah owns 65% of PLUS.

- PLUS has outstanding net debt amounting to RM8.5 billion

We call upon the Government to take the following actions:

1. The Government should make a General Offer (GO) to acquire all minority shareholders of PLUS with a generous 15% premium at RM3.30 per share, costing RM5.25 billion thus ensuring that minority shareholders are protected.

2. The cost of acquisition added to the RM8.5 billion net debt of PLUS will amount to RM13.75 billion.

3. This cost will be funded by issuing Malaysian Government Securities (MGS) at 3% interest (or less), costing RM413 million per annum. Total repayment will amount to RM16.2 billion over 6 years.

4. At the same time, PLUS should generate at least RM20b in net positive cash flow the 6 years to 2015 without further toll rate hikes and a conservative 3% pa traffic growth.

5. Therefore by 2015, the government can completely repay the MGS and still have RM3.8 billion excess which could be used to build a better public transportation system throughout the country.

Not only will the execution of the above proposal bring joy to all Malaysians with a toll-free North South Expressway, the exercise will fit perfectly with the upcoming “mini-Budget” by the Finance Minister:

- RM14 billion saved by Malaysian consumers will reduce the cost of living for the average Malaysian in times of economic difficulties we face today.

- RM14 billion saved will also redirect expenditure to other more productive sectors of our economy by increasing domestic consumer demand.

- The reduced toll rates and its subsequent abolition will substantially reduce the cost of doing business in Malaysia, increase logistical efficiencies and ultimately make Malaysian companies more globally competitive.

- Best of all, the plan will stimulate demand and make available substantial funds for public infrastructure development without the Government having to increase the precarious budget deficit further.

Hence, the DAP Ops RESTORE Team would like to reiterate our call to both the Finance and Works Minister to include the above proposal in the proposed mini-budget set to be announced by the Finance Minister on the 10th March for the benefit of the Government and all Malaysians.

Malaysia's Next PM Mends Fences With Minorities

noreply@blogger.com (Unknown) — Wed, 01 Apr 2009 02:54:00 +0000

Malaysia's incoming premier Najib Razak Tuesday hailed the ethnic Chinese community's contribution to the nation, in a bid to mend ties with minorities who deserted the coalition in 2008 elections.

The comments from Najib, who is expected to be sworn into power later this week, came after an angry debate over the role of minorities in the multiracial country's independence struggle.

"I would like to thank the Chinese community for their many contributions to our nation's development," Najib told editors of a local Chinese paper, according to a statement from his office.

"The Malaysian Chinese community has, is now, and will forever play a vital role in the fabric of our nation," he added.

Najib last week became president of the ruling United Malay National Organisation (UMNO) which represents majority Muslim Malays who make up 60 percent of the population and dominate the government.

UMNO leads a coalition of race-based parties that also represent the ethnic Chinese and Indian communities, but they were hammered in elections a year ago as minorities shifted towards the opposition.

The opposition benefited from a rising sense of "Islamisation" of Malaysia, and fears that minorities' rights are being eroded.

Najib pledged to "develop a government that respects the voices of all Malaysians" and said the government "recognises and respects the contributions of all people in building Malaysia."

His comments came after a senior leader said at last week's UMNO assembly that independence and later developments were forged by "UMNO and our Malay rulers and no one else."

The Malaysian Chinese Association (MCA), a key member of the coalition, urged a stop to "rewriting the facts of history or denying the efforts of other races in helping to fight for the country's independence."

Malaysia gained its independence from Britain in 1957 under the leadership of UMNO, MCA and the Malaysian Indian Congress, which later along with several other parties, came to form the present ruling coalition. - AFP

Oil Tumbles Below US$49 On Gloomy Economic Outlook

noreply@blogger.com (Unknown) — Tue, 31 Mar 2009 06:00:00 +0000

HOUSTON: Oil prices tumbled below $49 a barrel Monday as unease about the economy - from Asia to America - raised doubts about the global appetite for energy.

Benchmark crude for May delivery fell more than 7.6 percent, or $3.97, to settle at $48.41 on the New York Mercantile Exchange.

In London, Brent prices fell $3.19 to settle at $47.99 a barrel on the ICE Futures exchange.

Gasoline futures plunged more than 10 cents a gallon.

Jim Ritterbusch, president of energy consulting group Ritterbusch and Associates, said he expects oil to fall as low as $47 in advance of the U.S. crude inventory report, the monthly unemployment report and a meeting of the Group of 20 world leaders in London, all this week.

"Late in the week, all hell could break loose, but I don't know whether it makes the market go up or down," Ritterbusch said.

Most energy-market analysts found no fundamental reason for a rally this month that pushed oil prices from $40 per barrel to more than $50.

Crude inventories continue to build even with OPEC cutting production and domestic producers suspending oil projects.

Oil prices have moved higher as a spate of positive economic news heartened investors.

Just last week, markets rallied behind word of a new plan to resolve the nation's banking crisis and a report that consumer spending rose in February for a second straight month.

"None of these burned a single hydrocarbon or pulled a single gallon (of gasoline) from storage," the energy consultancy Cameron Hanover said in a note to clients Monday.

"By Friday, it was just too much macroeconomic news and not enough oil fundamental news that had pushed prices higher."

Traders began to sell positions on the final day of the week.

U.S. stock markets got off to a rocky start Monday after the White House rejected turnaround plans from General Motors Corp. and Chrysler.

The Dow Jones industrial average fell 300 points in late afternoon trading.

Losses by major corporations, from banking to the industrial sector, have boosted the amount of oil held in storage and weighed on prices.

The U.S. government last week said crude storage facilities were brimming with more oil than they've had in 16 years.

Combined with the strategic petroleum reserve, the nation now has 1.05 billion barrels of oil in storage - enough to fuel roughly 44 million cars for a year.

"You can't swing a cat without hitting a barrel of crude oil in the United States," analyst Stephen Schork said in his daily markets report Monday.

Crude is piling up as airlines, manufacturers, automakers and just about every other sector slow down and millions of workers lose their jobs. U.S. stores of natural gas also rose by 3 billion cubic feet to about 1.65 trillion cubic feet for the week ended March 20.

Natural gas prices have fallen to levels last seen nearly seven years ago as industries cut costs and slow factory production.

The Organization of Petroleum Exporting Countries has promised to slash production by 4.2 million barrels per day, but analysts are at odds about the level of compliance by OPEC members.

JBC Energy in Vienna cited data from tanker-tracking agency Petrologistics showing that March crude oil production from 11 OPEC nations would total 25.9 million barrels a day, more than 1 million barrels higher than the group's implied output ceiling of 24.845 million barrels a day.

Comments Monday by Qatar's oil minister suggested OPEC members may be facing a new reality because of a widespread recession.

Abdullah bin Hamad al-Attiyah said he was "OK" with crude prices around $50 a barrel for 2009 and was "trying to be more pragmatic" regarding the global crisis and its effects on oil prices.

Just two weeks ago as OPEC ministers gathered in Vienna, Austria, there was still talk of $70 oil.

In other Nymex trading, gasoline for April delivery tumbled 10.8 cents to settle at $1.3799 a gallon while heating oil slipped 9.02 cents to settle at $1.3426 a gallon.

Natural gas for May delivery rose less than a penny to settle at $3.739 per 1,000 cubic feet. - AP

Earth Hour: TNB Records 550MW Drop

noreply@blogger.com (Unknown) — Tue, 31 Mar 2009 05:52:00 +0000

KUALA LUMPUR: Although the Earth Hour campaign last Saturday resulted in electricity consumption dipping by 550 megawatt but Tenaga Nasional Berhad (TNB) is not complaining.

Rather, TNB accepted that the hour-long campaign, which began at 8.30pm, was for a good cause.

The 550 megawatt is equivalent to 14 million fluorescent bulbs of 40 watt each.

"While this minor fall in demand will result in a slight shaving of our revenue, we accept that Earth Hour is for a good cause," said TNB president/chief executive officer Datuk Seri Che Khalib Mohamad Noh in a statement here Monday.

He said, during the one-hour period of the energy conservation initiative, TNB staff were extra vigilant, in the event of untoward operational snags.

"Everything went on very smoothly and we were able to respond to the slightly lower demand, without any operational glitch.

"Demand peaked almost rapidly at 9.30pm, to follow the normal Saturday evening demand pattern," added Che Khalib.

He said TNB was surprised by the support and appreciation demonstrated by many of its customers on the worldwide Earth Hour campaign. - Bernama

In Support Of Earth Hour

noreply@blogger.com (Unknown) — Tue, 31 Mar 2009 05:44:00 +0000

MALAYSIANS joined in the call to take action on climate change when they turned their lights off for an hour to celebrate Earth Hour on Saturday.

The KL Tower welcomed 80 guests atop its Open Deck to witness the significant event. The guests from government agencies, corporations and the media watched the Petronas Twin Towers and other buildings in KL, Petaling Jaya and even Genting Highlands switch off their non-essential lights.

Beautiful: It was a party-like athmosphere at CapSquare where participants were entertained with games and performances by local celebrities

The event began at 8pm as Malaysian celebrity Lina Teoh welcomed guests and later headed the countdown when four KL Tower base jumpers performed their feat for the launch of Earth Hour.

For an entire hour, guests enjoyed their meal amid darkness while listening to live Malay traditional music provided by the KL Tower.

The Federal Territories Ministry secretary-general Datuk Ahmad Phesal Talib said this year was the just the beginning for more events in the future.

“More than 50 government buildings from KL have joined in the Earth Hour and even the Cabinet agrees that it is an important event for the earth’s conservation,” Ahmad Phesal said.

Doing my bit: A supporter signing his pledge to conserve the environment at Sunway Pyramid.

For World Wide Fund For Nature (WWF)’s chief operating officer Datuk Dr Dionysius Sharma, the journey for Earth Hour was made a little easier by the co-operation from all spheres.

“When we started, we wanted three main organisations to join in — the government, corporations and the public. They have all proved to be very helpful,” Sharma said.

“Few people were sceptical about the event, asking how much energy we can conserve but it is more than that. It is the awareness that people have about the climate change,” he added.

McNeil: ‘We must try not to indulge too much and live on appropriate portions.’

To pledge your support or find out details on how to save energy, log on to www.earthhour.org/malaysia.

At CapSquare in Kuala Lumpur, some 2,000 participants from all ages joined in the fun by signing up in the Walk of Hope minutes before the countdown began.

Dressed in similar black T-shirts and armed with a candlelight each, the participants walked along the 500m route accompanied by a marching band together with the Charm All-Stars Cheerleaders.

“The Walk of Hope idea was initiated to gather as many people as possible to send a message and make a stand against global warming and preserving the Earth for generations to come,” said BRDB senior manager Wayne Wong.

Wong added that tickets sales from the walk would be donated to WWF-Malaysia in its efforts against global warming.

At 8.30pm, the crowd cheered and partied in the dark as they were entertained with a host of low-powered shows which included an 18-prosperity drums ensemble, a fire-eating show, rhythm tap dancing as well as singing performances by various local artistes and ambassadors.

Besides that, an all-day Eco Bazaar was held selling clothes, accessories together with environment-friendly groups like the Malaysian Nature Society, Wild Asia, WWF and Rakan Muda-Eco Wing.

At the Starhill Gallery in Kuala Lumpur, YTL Corporation Berhad held an Earth Hour celebration at Shook! The event started with the countdown by the Tree Theatre Group followed by a story-telling session by Datuk Dr Sheikh Muszaphar Shukor and performances by Sean Ghazi, Deanna Yusoff, Jes Ebrahim and Wayang Lampu by Five Arts Centre.

A welcoming address was given by YTL Corporation director of investments Ruth Yeoh, who was very passionate about the effort.

“In taking the logical step to not only be a part of the Earth Hour and celebrating it as well, we have looked how technology has made our lives more comfortable.

At the event, the YTL Green Ribbon Award prize was presented to SM Sains Kuala Selangor, SM Assunta and SM Damansara Damai, who received RM3,000, RM2,000 and RM1,000 respectively.

At the Westin Hotel KL, StarMetro spoke to guest Susannah McNeil, 41, from Australia.

McNeil said education was an important way to teach people about the environment.

“It is nice to see even Westin getting behind this effort. We must try not to indulge too much and live on appropriate portions, which is just one of the ways we can help save the environment,” she said.

The hotel switched off its exterior signage lighting; dimmed non-essential interior lighting and used candlelight in public areas such as restaurants and bars to create the illuminating atmosphere.

At Mont’Kiara, children and adults alike waved their glow sticks and torchlights in sync with the Yayasan Anak Warisan Alam’s (Yawa) Eco Drum Circle performance, which artfully used recyclable objects like bins and bottles to create rhythmic beats.

The show was featured as part of the Earth Hour celebration at the Sunrise Fun Zone Community Centre.

Students from Global Issues Network at Mont’Kiara International School put up a simple play using glow sticks to form a globe and other props to demonstrate the effects of global warming and ways to save the planet, and gave an a-capella rendition of Joni Mitchel’s Big Yellow Taxi.

Other performances included a Taiko Drums ensemble comprising residents and Sunrise employees, and visitors singing in unison to Michael Jackson’s Earth Song.

Before the actual “lights off” hour, visitors took the opportunity to visit the several interactive eco booths where they learnt how to make natural potpourri and ‘exotic salad’ (rojak).

Supporting partners like Yawa distributed little plants for people to take home as part of its adopt-a-tree programme, while Justlife Group Sdn Bhd educated visitors about the benefits and process of making garbage enzyme.

The children took part in fun activities like painting eco bags and T-shirts, making edible dough flowers and getting a hands-on approach in gardening.

Insurance agent S. Hariharan brought his three children along to educate them about the environment.

“They already separate their garbage at home and witnessed first-hand what happens at the recycling centre. My son, Sri Ram, is very excited about the plant he got from Yawa and looks forward to seeing it grow,” said the Mont’Kiara resident.

Furniture outlet IKEA joined in the support for the event by turning off all non-essential lights in the IKEA Restaurant.

The lights on the facade of the store in Mutiara Damansara, Petaling Jaya, were also turned off.

IKEA Malaysia general manger Joseph Lau hoped that their actions would inspire people to take practical actions to support the initiative and reduce their own carbon footprints.

MixFM announcer Serena C and the Roadrunners crew were at hand to entertain customers and play games an hour before the lights went out.

At 8.30pm, IKEA managers and employees walked around the restaurant to place lamps on the tables so that diners could enjoy their dinner by candlelight.

The KL Stompers put up a live percussion performance with IKEA products.

To further spread the message, there were special offers on energy-saving bulbs and products.

Social and environment manager Ben Chong said the company used these bulbs where possible and had installed extra insulation to save energy on cooling.

“Here, we have water tanks installed in the building to accumulate rainwater for the sewage system, general cleaning and to flush the toilets.

“Our toilets are equipped with motion censors to save electricity when no one is using it,” he said.

He said so far, they had saved up to 13% on energy consumption compared with 2007.

At Sunway Pyramid, more than 500 people took part in the event. For the first time, Sunway Pyramid’s iconic lion head, Egyptian-style facade and street lighting were turned off.

Sunway resort Hotel and Spa turned off non-essential lights while the Sunway Lagoon Theme Park switched off lights at the pedestrian, palm trees, volcano and Wild Wild West. Sunway Medical Centre also turned off their facade lighting.

WWF Malaysia conservation director Dr Arun Venkataraman was proud that Malaysians were doing their part to support Earth Hour.

“Such concerted efforts to address climate change are urgent and crucial. According to climate modelling, may countries including Malaysia will experience significant future rainfall changes.

“(Therefore,) A Malaysian commitment to mitigate climate change will not only contribute towards reducing the global impact, but also help to ensure water and climate security for many future generations of Malaysians,” he said.

Subang Jaya assemblyman Hannah Yeoh, who officiated at the launch said: “Some may question the effectiveness of Earth Hour. The idea of turning off electricity for just an hour once a year seems silly, but what they don’t realise is the meaning behind the action. Our celebration today goes beyond turning off lights; it’s about our realisation of the current state of the environment,” she said.

Sunway University College students, led by Sunway Idol Benjamin Lin, sung Michael Jackson’s Heal The World. There was also an Earth Hour Poem recited by 14-year-old student Aina Nabilah, a Storm performance and song performances from the SMK Bandar Sunway special students.

PM: Malays Started Fight For Independence

noreply@blogger.com (Unknown) — Tue, 31 Mar 2009 05:36:00 +0000

KUALA LUMPUR: It is historically true that nationalism and the struggle for independence was first started by the Malays, says the Prime Minister.

However, the country gained independence after the Malays, Chinese and Indian communities united to fight to free the country from British rule, said Datuk Seri Abdullah Ahmad Badawi.

Commenting on Education Minister Datuk Seri Hisham-muddin Tun Hussein’s statement on the role of the Malays in the country’s Independence that has caused some unhappiness among other races, Abdullah said “it’s a fact” and true that the Malays, led by Datuk Onn Jaafar, initiated the struggle for Independence.

Saying that “history cannot be forgotten and erased”, he added that Tunku Abdul Rahman took over Umno’s leadership from Datuk Onn and formed an alliance – Perikatan – with MCA and MIC which eventually saw the country gaining its Independence.

Abdullah said as there were also other races in the country, Tunku Abdul Rahman had the wisdom to bring all together in the struggle.

“Because all the races came together and were united in the cause, the British had no chance to divide and rule. They granted Independence,” he said.

The Prime Minister said the country continued to be governed by the Barisan Nasional under the concept of the people’s participation through the parties that represented all the races.

Meanwhile, Hishammuddin has denied he excluded the involvement of the MCA and MIC when he talked about the process of attaining the country’s independence, saying that several vernacular newspapers had quoted him out of context.

Source: TheStar

US Stocks Up, Dow At Highest Level In Six Weeks

noreply@blogger.com (Unknown) — Fri, 27 Mar 2009 06:03:00 +0000

NEW YORK: Wall Street's March rally gained momentum on Thursday - this time, thanks to surprisingly good earnings from some major consumer brands.

Strong demand for government debt at the Treasury Department's latest auction also lifted stocks. Investors had been nervous about the government's ability to fund its economic stimulus and financial bailout programs.

Best Buy Co., ConAgra Foods Inc., and Dr Pepper Snapple Group Inc. all turned in quarterly profits that beat analysts' modest expectations.

The Dow Jones industrial average rose 174 points Thursday to finish at its highest level in nearly six weeks.

The index has surged 21 percent since hitting a nearly 12-year low on March 9.

Market analysts are quick to point out that an advance of that size can quickly collapse, especially in an uncertain economic environment.

Kevin Kramer, chief operating officer at West End Financial Advisors, an asset management company in New York, contends unemployment, limited access to credit and heavy loads of debt will keep curbing growth.

"Just because things aren't getting worse doesn't mean they're getting better," Kramer said.

"You stopped the flow of blood out of my body, but it doesn't mean I'm going to survive."

But with the end of the first quarter quickly approaching, money managers are fearful of missing out on the recent rally, the magnitude of which usually occurs over the course of many years.

David Waddell, senior investment strategist and chief executive of Waddell & Associates, said he has seen some "seller's remorse" among his clients who sold stocks too low in the first two months of the year.

That can move people back into buying mode. "One thing that many people are beginning to believe is that the market is going to bottom in 2009," Waddell said.

The Dow jumped 174.75, or 2.3 percent, at 7,924.56, its highest close since Feb. 12.

The Standard & Poor's 500 index rose 18.98, or 2.3 percent, to 832.86.

The Nasdaq composite index rose 58.05, or 3.8 percent, to 1,587.00. - AP

UMNO's Golden Keris 'Retired' As The Party Seeks Renewal

noreply@blogger.com (Unknown) — Thu, 26 Mar 2009 03:59:00 +0000

UMNO has "retired" a famous "keris" that used to be brandished at party events because the gesture was regarded as ethnically divisive.

Hishamuddin Hussein, the leader of the party's influential and sometimes hot-headed youth wing, shot to fame for waving the keris above his head at annual meetings of the United Malays National Organisation.

But the resulting outcry, and elections a year ago that saw the UMNO-led coalition deserted by ethnic Chinese and Indians, have made such displays of Malay nationalism less acceptable.

Hishamuddin, who is stepping down after 11 years in the role, was today presented with the keris. It is now his for safe-keeping, after he delivered his last address to youth wing members at this UMNO get-together.

He raised the golden weapon to face level, but did not wave or unsheath it, and placed it back on its pillow while UMNO members dressed in traditional costume and black "songkok" hats cheered "Allahuakbar" or "God is great".

Hishamuddin, the son of a former prime minister, is now vying to become one of three party vice-presidents. He was in tears by the end of the event.

"This is our culture. Now the keris has been handed over to me for my personal care. The keris is no longer in the youth wing. I hope this is a closure to what has been disputed and misunderstood before," he told reporters.

The dagger issue became particularly divisive at the party's 2006 assembly, when it was linked with ultra-nationalist rhetoric that emerged there.

Some delegates said that Malays, who dominate the population of the multi-racial country, must be willing to fight "to the last drop of blood" to defend their rights.

Another speaker warned minorities to stop questioning the rights of the Malays and not to test their patience.

The fiery tone sparked concerns about the economic and religious rights of Malaysia's sizeable ethnic Chinese and Indian communities, and further strained race relations which have deteriorated in recent years.

The following year, Hishamuddin defied calls for restraint by again unsheathing the dagger and holding it aloft to thunderous applause, in a gesture widely seen as aggressive and inflammatory.

He subsequently apologised for the move, saying he did not intend to hurt the feelings of non-Malays.

Malaysia's population of more than 26 million consists of about 60 percent Malays but the economy is largely controlled by ethnic Chinese, who make up some 26 percent of the population. - AFP

Malaysia's Next Leader Calls For Radical Overhaul

noreply@blogger.com (Unknown) — Wed, 25 Mar 2009 04:26:00 +0000

Malaysia's next premier Najib Razak on Tuesday warned the ruling party it must embark on a radical overhaul to win back public support, or face the end of its half-century grip on power.

Najib's address to the United Malays National Organisation (UMNO) at the start of a landmark meeting where it will elect a new leadership, is an attempt to set a new direction for the party which was humbled in March 2008 polls.

"What is at stake is nothing less than the very fate of UMNO," said Najib, the current deputy premier, who is to succeed Prime Minister Abdullah Ahmad Badawi shortly after the five-day assembly concludes.

"Clearly, the results of that general election have been the worst in the history of our party," he said, after the UMNO-led coalition lost five states and a third of parliamentary seats to the opposition.

"It is an awful and bitter truth, but a truth nonetheless and one which we must accept," he told the party, which has floundered since the polls which redrew Malaysia's political landscape.

"We gather here tonight not to wallow in sadness nor to lament our fate. But as a party, we are here today but for one singular purpose, that is to chart the way forward for UMNO and our struggle," he said.

"The decision we collectively make at this assembly will determine the future of our party: whether we continue to shape and mould history, or just become an entry in the annals of history."

The assembly was launched with a speech by Abdullah, who is to step down after a disappointing six years in power during which he failed to implement promised political reforms including tackling corruption.

UMNO delegates will Thursday anoint Najib as the new UMNO president, and cast their votes for key roles including deputy president and heads of the youth and women's wings.

In line with UMNO custom, Najib is succeeding Abdullah unopposed. The party chief traditionally becomes prime minister and leader of the Barisan Nasional coalition of race-based parties.

Najib urged the delegates to choose wisely as they select the new leadership, and to reject vote-buying which is endemic in the party.

"We must resolve to eradicate money politics right down to the roots. If not, we will all be collectively responsible for the demise of this beloved party of ours."

He called for a new attitude within the party, which is seen as self-interested and out of touch, and said it must embrace a new generation of voters who are "better informed, very demanding and highly critical."

He urged members to embrace online media, which have become a phenomenon in Malaysia, successfully exploited by the opposition, which has been shut out of the government-linked mainstream media.

"Like it or not, we cannot regard the new media as our enemy," he said, in comments that came shortly after party officials said they had barred several online news portals from covering the UMNO assembly.

Despite the talk of reform, there are concerns that from its position of weakness, the party may reject calls for liberalisation and instead choose to shore up its support among conservatives.

Political observers say recent events, including sedition charges against an opposition veteran for criticising a Malay royal ruler, and the banning of two opposition newspapers, indicate a hardline approach could be in the offing.

Najib is expected to be sworn into power by the king in the first days of April but no date has been announced, giving rise to speculation that Abdullah may be reluctant to step down.

After emerging from his speech to delegates, the outgoing leader defended the lack of a formal plan.

"I know what I am supposed to do. There is no need to disturb me," he told reporters. - AFP

Obama Says US$3.6 Trillion Budget Will Create Jobs, Cut Deficit

noreply@blogger.com (Unknown) — Wed, 25 Mar 2009 02:20:00 +0000

WASHINGTON President Barack Obama says his ambitious US$3.6 trillion budget will put economic recovery on a stronger foundation that ensures the nation doesn't face another crisis in 10 or 20 years.

At a prime-time news conference Tuesday (Wednesday morning Malaysian time) Obama said: "We will recover from this recession."

Defending his budget from Republican critics and some in his party, Obama said his spending plan will lead to new energy jobs and less dependence on foreign oil.

He said it invests in education, health care and makes the tough choices to cut the deficit in half by the end of his first term.

He says the budget should not continue past policies that have led to "narrow prosperity and massive debt" - a rebuke to Republicans.

Other pointes he made:

Obama says he's not ready to comment on a proposal from some Senate Democrats to scrap his middle-class tax cut after 2010.

Obama says he hasn't yet seen what changes are coming out of the House and Senate.

But he delivered his bottom-line on the budget at a Tuesday evening news conference.

Obama said the budget must move toward health care reform and include an energy policy that frees the U.S. from dependence on foreign oil.

He also says he's looking for investment in education and a reduction in the deficit.

Obama said a middle-class tax cut is already in place through the recovery package for at least two years.

And he said he never expected Congress to approve his plan without some changes. - AP

Obama is defending his decision to wait a few days before expressing his anger over the bonuses paid out to executives at troubled insurer AIG.

Critics questioned why the president seemed days behind the populist anger over the $165 million that were distributed to executives of the company bailed out with federal tax dollars.

Said Obama: "It took us a couple days because I like to know what I'm talking about before I speak."

Obama says he can save money on defense and veterans programs by targeting the way the military buys its equipment.

He says the country can remain safe and make sure veterans have the services they deserve.

Obama says too often in recent years, returning veterans haven't been given what they need in such areas as treatment for post-traumatic stress and serious brain injuries.

He says he wants to serve those veterans and reduce military spending by keeping close tabs on the way contractors and lobbyists do business.

He told reporters at a Tuesday evening news conference that he's already targeted $40 billion in procurement savings, and that he'll continue to look for ways to reduce wasteful spending on multibillion-dollar weapons systems.

At a time when millions of Americans are losing their jobs and their homes, President Barack Obama says he's "heartbroken" that any children are without a roof over their heads.

Obama says the "most important thing" that he can do for those children is make sure that their parents have jobs. And he again pointed to his plan to save or create 3.5 million jobs through his economic stimulus package.

He says in the meantime, he wants to work with states to help those who are "falling through the cracks."

He said there needs to be a "change in attitude" in the country, so that it isn't seen as "acceptable" for children and families to be homeless. - AP