December 31, 2009

China: Expecting 9.5% GDP in 2010

Reuters reported today that the State Council Development Research Centre (SCDRC),a leading state think-tank, has said that China’s economy would remain robust, as market-driven investment picked up while government-led stimulus spending slowed.They predict China’s economy to grow 9.5 per cent in 2010, topping 2009's expected figure, as real estate investment buoys growth and inflation remains mild.

“In 2010 the external (economic) environment will remain quite grim, but it will not deteriorate any further,” said the Centre’s report, which was published in the Chinese-language China Economic Times.

“Against a backdrop of ample production and supplies, we forecast that in 2010 there will not be marked inflation,” it said, adding that the CPI inflation index was likely to stay less than 3 percent for 2010.

The report adds to recent signs that Chinese officials and many experts are guardedly confident the country’s economy can maintain momentum in 2010, surmounting worries about inflation, investment policy and a heady housing market.

The country’s 4 trillion yuan stimulus package, complemented by a record surge in bank lending, propelled the economy to 8.9 per cent year-on-year growth in the third quarter of 2009.

While the government stimulus spending will fall off this year, investment in real estate could grow by 30 to 40 percent compared with 2009, and “become a main force driving investment growth,” said the new report, written by Zhang Liqun, a macro-economist in the Centre, which advises the government.

China’s manufacturing sector steamed ahead in December with rises in new orders and output driving the purchasing managers’ index (PMI) to 56.6 in December from 55.2 in the previous month, pushing the key indicator to a 20-month high.

Some cities in China have seen residential property prices rise by about a third this year, and real estate investment in China accelerated in November, up 17.8 percent for the first 11 months of 2009 compared with the same months in 2008.

Zhang said investment in real estate would remain strong, even as growing supply of new housing cooled price rises, especially from later in 2010.

Singapore: Casino Junket Restraints

It's not all that bad for the new casinos that will begin operating soon. There is the good news and the not so good news. These rules are found on the Casino Regulatory Authority (CRA) web-page.

So let us digest the good, the bad and the ugly asects of these rules.

"High rollers accustomed to discreet VIP access may find themselves in the spotlight if they plan to gamble in Singapore’s casinos.

The Casino Regulatory Authority (CRA) has released detailed regulations on the licensing and regulation of casino junkets here which require casino operators to make arrival reports that will include the particulars of all junket players and promoters at least one hour before any are allowed to enter the casinos.

This puts an end to gambling incognito and, more importantly, increases the level of oversight expected of casino operators here.

Indeed, the regulations, which were made public yesterday through CRA’s website, leave the onus of maintaining the integrity of junkets on the casino operators.

But this is not to say that junket promoters will have it easy.

Junket promoters organise gambling trips for high rollers and usually earn a commission on the bets placed by their clients. Some promoters offer credit to gamblers as well as ‘comps’ (complimentary items such as travel and lodging) to entice clients to gamble.

To regulate the junket industry, CRA requires all junket promoters and representatives to be licensed and undergo ‘investigations’ which are similar to probity checks for casino licences.

The cost of the checks will be borne by the junket promoters.

Licensing requirements have also been set up detailing the duties of promoters, including maintaining records of all clients, commissions, rebates and financial statements which CRA will have access to.

They will also have to declare their finances on a regular basis.

As a part of the regulations, a junket agreement between the casino operator and the junket promoter detailing the terms of business including commissions must be lodged with CRA. Disciplinary action for anyone who steps out of line could include a fine of up to S$400,000 (RM975,000).

A spokesman for CRA said: “CRA has studied the way various jurisdictions in the US and Australia as well as Macau regulate junket operations. We have also taken cognizance of Singapore’s circumstances — that we are a leading financial centre with a high level of safety and security as a competitive advantage — and developed a junket licensing regime that would be suitable for Singapore’s local context. The junket licensing regime is developed to facilitate a conducive environment for junkets to operate in Singapore, without compromising on law and order considerations.”

Melvyn Boey, an analyst with Bank of America Merrill Lynch, said that he is not surprised by CRA’s junket regulations.

He believes the main aim of the junket regulations is to restrict money laundering and this is likely to “deter” that segment. He also said that certain requirements by CRA, such as the disclosure of junket commissions, is similar to those in other gaming jurisdictions.

It has been reported that the crucial business brought in by junkets could elude Singapore. However, Boey believes “in-house” high rollers from the casinos’ own VIP lists will account for much of the high-roller business in Singapore.

“I am not inclined to change my revenue projections,” he added. For 2011, the first full-year of operations, Boey expects total gross gaming revenue from the casinos at Marina Bay Sands and Resorts World at Sentosa to hit S$4 billion.

Junkets generally refer to the VIP or high-roller business segment in casinos and depending on the country, can account for a significant portion of the gross gaming revenue.

UOB KayHian notes that for Genting in Malaysia, VIP gamblers accounted for 30 per cent of the total gaming revenue in 2008. In Macau, it noted that VIP gamblers accounted for 66 per cent of total gaming revenue while in Singapore, it has projected VIP gaming revenues of about 42 per cent at Resorts World at Sentosa.

UOB KayHian also said in a recent report that the “market may be overly optimistic on Singapore casinos’ high-roller revenues due to rising competition, client stickiness and potentially cumbersome disclosure requirements”.

Krist Boo, the spokeswoman for Resorts World at Sentosa, said: “Junket operators play an important role in bringing premium gaming customers into Singapore. They are integral to Singapore’s vision of making the integrated resort an international success, and we support that vision. We are working closely with both CRA and junket operators to ensure that our operators are regulated and licensed.”

So, let teh casinos live and let live, Singapore style.

Singapore: Full Year Contraction of 2.1% in 2009

Singapore has pulled through a difficult year.GDP growth for the fourth quarter was 3.5 per cent year-on-year, which means a 2.1 per cent contraction in GDP for the full year of 2009.

This compares with the slight 1.5 per cent GDP growth recorded in 2008, and comes in at the lower end of the government’s forecast of a 2 to 2.5 per cent decline in 2009’s GDP.

“Our economy is growing again, and has recovered much of the ground since the recession began last year,” said Premier Lee Hsien Loong in his New Year message yesterday evening.

This, he said, was achieved by both government programmes such as SPUR, Jobs Credit and the Special Risk-Sharing Initiative.

And, unions, employers, grassroots and community organizations played critical roles in keeping unemployment under control, or helping retrenched workers.

For 2010, the government expects the economy to expand by between 3 and 5 per cent. With the improved outlook, special measures such as Jobs Credit and the risk-sharing scheme are gradually being phased out.

Outlining major investments in capabilities and infrastructure, such as the two integrated resorts, extended MRT lines and new HDB townships, as well as the two new tertiary institutions, Lee said that Singapore “must also address our growth constraints” as physical limits tighten.

“We must therefore shift gears, to grow by qualitative improvement: transforming the economy, developing skills and growing talent, both our own and from abroad,” he said. This means local enterprises need to “innovate relentlessly and build the capabilities to grow into world-beating companies”, while workers too must keep upgrading their skills and remain flexible even though job prospects have now improved.

It looks like Singapore is slowly turning around on the home stretch.

I believe Singapore can do it.

Almost all Goods but...............

Beginning tomorrow, six Asean member countries namely Brunei Darussalam, Indonesia, Malaysia, the Philippines, Singapore and Thailand can import and export almost all goods across their borders at zero tariff.

As of Jan 1, 2010, an additional 7,881 tariff lines will come down to zero tariffs in the Asean-6, bringing the total tariff lines traded under the Common Effective Preferential Tariffs for ASEAN Free Trade Area (CEPT-AFTA) to 54,457 or 99.11 per cent.

Additionally, with the reduction, the average tariff rate for these countries is expected to further decrease from 0.79 per cent in 2009 to just 0.05 per cent in 2010, the Asean Secretariat said in a statement here today.

In 2008, intra-Asean import value of commodities for these 7,881 tariff lines amounted to US$22.66 billion, or 11.84 per cent of Asean-6 import value within Asean.

The tariff lines include final consumer products such as air conditioners; chilli, fish and soya sauces; as well as intermediate materials such as motorcycle components and motor car cylinders.

Other products include iron and steel, plastics, machinery and mechanical appliances, chemicals, prepared foodstuff, paper, cement, ceramic and glass sectors.

The statement said the elimination of tariffs by Asean-6 underscores Asean’s commitment to dismantle tariffs and keep intra-Asean trade open.

It would also serve as a catalyst for the development of the single market and production base projected by the Asean Economic Community (AEC) Blueprint.

The actual impact and how much this final instalment would be translated into savings for consumers would depend on the market dynamics of the respective Asean-6 countries, it said.

Asean Secretary-General Dr Surin Pitsuwan said: “We sincerely hope all parties will act to ensure that the man on the street will benefit from these reductions in tariffs.”

As for the business community, especially the downstream producers, Dr Surin said that they also stood to gain.

“Lower cost of inputs will allow the business community a wider choice of goods, and in the process, they will move towards becoming more competitive globally, as envisaged in the AEC Blueprint,” he added.

The CEPT-AFTA covers the entire range of products traded by the Asean member countries and provides for the gradual reduction in tariffs of these products, which has been ongoing since 1993.

Under the CEPT-AFTA schedule for tariff reduction, each member country is allowed to place their products in the normal track, where the commitment is for the tariffs to be reduced to zero by 2010 for Asean-6 and 2015 for Cambodia, Laos, Myanmar and Vietnam.

In 2010, these countries will also see tariff reductions under the CEPT-AFTA commitments to 5 per cent, where the average tariff rate will decrease from 3 per cent in 2009 to 2.61 per cent.

Under the CEPT-AFTA, agricultural products such as tobacco, coffee, live animals and animal products, which come under the Sensitive List (SL), will have their tariffs reduced to 5 per cent on 2010 and to zero tariff by 2015.

The Highly Sensitive List (HSL), comprising rice, will have their tariffs capped on a specified date. As for the General Exclusion List (GEL), the tariffs will remain based on factors such as national security and morals, health, aesthetic and archaeological grounds.

As of today, 487 tariff lines or 0.89 per cent of tariff lines for Asean-6 still remain in the SL, HSL and GEL categories. — Reuters

December 30, 2009

Watch Metronic go Global

No, it started locally even though back then. It has high hopes of going global almost immediately on listing on the MESDAQ Board those days.

Through networking it got some telemetry jobs over in Putrajaya and also made in-roads into pre-diagnostics software which was adopted by some premier hospitals in the Klang Valley.

You may not remember but Metronics was a dividend paying counter. It even gave a bonus issue when it migrated to the Main Board. As the projects in their books took off and complete,new projects were hard to find. It tried very hard going over to the Middle-east,India and China. Except for a few MOUs, nothing solid came Metronic's way.

The share price plunged below 5 sen at one time. Then it became hot again somewhere in the third quarter of 2009 when Metronics secure a build-operate and transfer water project in An-Hui province, China. The share price went as high as 16 sen.

Today's news as the year closes is good news for fatigued but loyal Metronic shareholders. That Metronic Global Bhd’s subsidiary Metronic Engineering Sdn Bhd has won an Arab Emirates dirham 21.3 million (AED100 = RM96.20) job from Sunway Engineering Sdn Bhd for the proposed Arzanah development in Abu Dhabi, the United Arab Emirates is some comfort. It is a start. I am sure shareholders would be most thankful to Sunway for off-loading the IT portion to Metronics which is its forte.It is not easy going it alone in the vast reaches of the Middle-East. That Sunway and Metronics have banded together in alliance speaks of more promising jobs in the future.

The job with Sunway Engineering is for a sub-contract to supply, deliver, install, test and commission the building management system, telecommunication and ELV services for Rihan Heights.

The project is expected to be completed by October 31 2010.

I can see more turn-around for Metronics in 2010?

Do you dare invest in Metronics? It is till below 10 sen today.

That Naughty Mug

Yes, NicoleKiss has been going around the world these past few days and picking novel items. This, cheeky mug, she just picked and posted on her blog. I though I will re-post it here. Maybe we can all look at the cheeky wordings and reflect?


How would you read it?

Prospects 2010: Almost Zero Tariff for China-ASEAN

The 1st of January 2010 is a significant date. On this day, ASEAN businessmen will have virtually unfettered access to almost two billion consumers from China. This historically signals the opening of the world's largest free trade area.

The Asean-China FTA, which has been in the pipeline since 2002, is set to be worth about as much as the European Union or the North American Free Trade Agreement (Nafta), and will be bigger than both combined in terms of population.

Under the new accord, China and the six founding Asean countries — Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand — are to remove tariffs on 90 per cent of imported goods, covering 7,000 product categories.

The other four Asean members, including Vietnam and Cambodia, will follow suit in 2015.

Officials hope the agreement will accelerate inter-regional trade — already expanding at 20 per cent a year — and reduce Asia's reliance on developed economies weakened by the economic downturn.

Trade volume in the China-Asean free trade zone, which has a combined gross domestic product of more than US$2 trillion (RM6.85 trillion), will “jump” by an annual rate of 40 per cent to 50 per cent, according to Thai embassy official Warawudh Chuwiruch, who was speaking at a press conference in Beijing two days ago.

Over the past 10 years, Asean-China trade has rocketed from US$39.5 billion in 2000 to US$192.5 billion last year, according to news agency AFP.

And China recently leapfrogged the United States to become Asean's third largest trading partner.

It is poised to overtake Japan and the EU to emerge as the single largest trading partner within the first few years of the FTA, Pushpanathan Sundram, Asean's deputy secretary-general, told AFP.

Economist David Cohen, of Action Economics, said that as China becomes an increasingly important export market for the world, the FTA will be a welcome additional boost for Singapore.

“I don't know how much material difference it is going to make, but the important thing is that China's growth is on track. And, whatever help the FTA can give to Asean economies will be beneficial,” he said.

Some Singapore economists, however, do not expect the FTA to have an immediate impact on the Republic's economy.

“In the initial stage, I think the political implication of the FTA overwhelms the economic significance,' said Nanyang Technological University economist Tan Khee Giap.

“If you talk about Singapore, even without this Asean-China FTA, we are already doing very well: We have been exporting more than we import from China over the last three or four years.”

From next year, the average tariff China charges on Asean goods will be cut from 9.8 per cent to 0.1 per cent, according to AFP.

Average tariffs imposed on Chinese goods by Asean states will fall from 12.8 per cent to 0.6 per cent.

So, are we going to have a upward shift beginning in 2010 that can see Malaysia expediting its return to better times before 2007?

Or it only on paper?

Pictures Paint a Zillion Words!

Look at these pictures. Don't they paint a zillion words?

Have fun!

Your Tax dollars Fast Asleep!

"I am Truly Sorry!"

Helping Hands and Helping Paws

Good Grief!

This is Courage!

Goodbye 2009, Welcome and God's Grace for 2010

Saying Good-bye for 2009

After a turbulent year of trials, tribulation and tragedies, have we become better as an individual? Has the country improved or has it sunk further into the murky depths of injustice?

Welcoming 2010!

All of us have seen successes,failures and personal tragedies of one sort of another. We all hope that 2010 will be a kinder year to all of us. That God will be on our side ever forgiving us,protecting us with his Grace and leading us henceforth to a better life.

The Grace of God

Amen.

The Four Cars LRT on the Putra Line

Yes, it is certainly good news for those going from both directions on the Putra Line. Today,an additional two coaches has been added to the LRT. This will not be a real great decision but nonetheless, it will ease the severe congestion for commuters during office hours. Anyway, they will only be in service at rush hour.

The new coaches can carry 800 passengers, twice the number of the existing two-car trains.

The four-car trains will be used during peak hours, in the morning and evening, and the two-car trains during the off-peak periods.

The two-car train carries about 400 people and the four-car train,some 800 people. During peak or rush hours, the 4-car train should be able to carry a maximum of 950 people.

The new train has wheelchair-friendly features and door alarm lights to help the hearing-impaired.

“We have ordered 35 sets of the four-car train and three sets went into operation today. Some have not arrived yet while some are still being tested,” said a spokesman for Prasarana,the owner and operator of the Putra Line. Prasarana is also the operator of the other public transportation network that includes the Ampang and Kelana Jaya LRT lines, KL monorail and bus service in the Klang Valley.

The four-car train sets are the latest version of the Bombardier advanced rapid transit driverless train designed in Canada, 65 per cent of which is assembled in Mexico and 35 per cent in Malaysia.

The remaining sets would be delivered in stages by the local partner, Bombardier-Hartasuma, until 2012.

All in all, Prasarana expects total delivery as early as April 2011.

"We’ll have 70 sets, that is, 35 sets of the current two-set trains which will be refurbished and 35 sets of four-car trains,” added the spokesman.

I think this is a good gesture of PM Najib. We are seeing some tangibility and visibility to his still uncertain 1Malaysia concept.

December 29, 2009

China: Potential to be a Superpower in 30 years

So predicts Minister Mentor Lee Kuan Yew of Singapore.

The Singapore Business Times reported on 30 December that it has just been over 30 years since China first adopted an open-door policy which puts it on its way to becoming the world's second largest economy soon. To Lee, becoming a world superpower will take more time.

Why? Making this point was Minister Mentor Lee Kuan Yew, who said that it would take more than another 30 years to “train and educate a whole generation” in a wide spectrum of specialties.

“Yes, China will have a big gross domestic product, but the GDP per capita is still about a third of that in America. China has got very poor provinces,' said Mr Lee at a dinner dialogue yesterday held in conjunction with Business China's second anniversary celebrations. “For the coastal areas, they will be as good if not better than Singapore. There will be big infrastructures and investments, good education. Some of the Chinese are already very confident and assertive.”

Business China, launched in November 2007 by Lee and Chinese Premier Wen Jiabao, is an initiative by the Singapore Chinese Chamber of Commerce & Industry. The organisation helps encourage businessmen to better understand the language, culture, and social and economic conditions of modern-day China.

Singapore's relationship with China was one that came about 'by accident', said Lee. “If Deng Xiaoping had not come here that year, the relationship would not have developed. He saw what we were doing in Singapore and he was taken up by our society — clean, safe, everyone owns their own homes,” he said. “He visited some of the flats, and saw how we made use of capitalism to build a fair society. That set into his mind that he could do the same (for China).”

The Chinese has once again proven,with will of steel,they can take all the odds to move forward. Their vision is laser-sharp!

Do our leaders in Malaysia have such awill? Sadly we can't even focus!

Seoul: A 5% Growth Rate in 2010

South Korea's economy is geared for positive advance in 2010. so says a Reuters report released today(30 December 2009.

It will probably grow by more than 5 per cent next year on the back of the successful effect of the government’s stimulus spending, says President Lee Myung-bak.

This is above the Ministry of Strategy and Finance’s official target of 5 per cent gross domestic product growth next year announced this month, and far higher than the central bank’s forecast of a 4.6 percent gain.

South Korea apparently has overcome the crisis ahead of other countries and international organizations' forecast that the economy would grow by about 4 per cent next year.

A statement from the presidential office, the Blue House, quoted Lee as making the remarks during a meeting to review public construction work projects due for next year.

The central bank estimated this month Asia’s fourth-largest economy would grow by 0.2 per cent this year, far better than earlier expectations for a steep decline, given the positive effects of a massive stimulus spending and monetary easing by the authorities.

Underlining the optimism, the central bank said early on Wednesday a key index measuring how local manufacturers assess their business outlook for January 2010 hit a two-year high of a seasonally adjusted 93, up from 86 in December.

South Korea’s economy derives more than half of its annual output from domestic service industries but exports of manufactured goods, ranging from cars and mobile phones to chips and ships, still play a critical role.

The upbeat economic prospects have prompted investors to bet the country’s central bank would start to raise interest rates early next year to prevent extra-low credit costs from fanning asset price bubbles and broader inflation.

The Bank of Korea held the benchmark 7-day repurchase agreement rate steady at record-low 2.0 per cent for the past 10 consecutive months after six cuts totalling 3.25 percentage points. It will next review the rate on Jan. 8.

Bond investors shrugged off the central bank data and Lee’s remarks, while awaiting more important industrial production data due to be released later in the day.

Analysts surveyed by Reuters this week forecast South Korea’s industrial output index would rebound by a seasonally adjusted 2.3 per cent in November over a month earlier after an unexpected 3.8 percent fall in October.

December 28, 2009

Najib: My Testimony for 2009

I append a posting from Premier Najib. In his blog, he penned his thoughts on the past 12 months, 9 of which he held the helm of the nation.[My comments are in parantheses.]

On his blog (www.1malaysia.com.my), Najib posted a year-in-review piece yesterday (28 December 2009) that reflects on the hurdles the country has faced and overcome, while sounding upbeat about prospects for 2010.

“At the start of 2009, I forecast a year full of challenges for us all, which would require the collective efforts of all Malaysians to overcome,’ says Najib, who became Malaysia’s sixth prime minister in April.

On the “1 Malaysia — People First, Performance Now” concept he introduced, Najib says he is “happy” that Malaysians have responded to his efforts to explain the value of 1 Malaysia.[The purity of the essence may be there but the tangible picture is still blur.]

The concept was set up to strengthen relationships and cooperation among the multi-racial community and calls on people to contribute towards the peace, stability and development of the nation.[ Sounds very much like the early Merdeka years.]

“More significantly, as my work took me around the country, I witnessed many occasions that proved the 1 Malaysia concept is a long-standing practice, from the communities in Sarawak, to the people of Sabah,” Najib says. “These moments give me great comfort that we are on the right path towards greater unity and prosperity.” [ You may be right here but your followers all have different understanding just like the 6 Blind Man and the elephant.]

On the economy, he says the government “braced ourselves” for the impact of the global economic downturn at the start of the year. This led Najib to turn to the Internet to seek suggestions from Malaysians on a stimulus package that was eventually tabled in March.[Very wise of you. After all they are your collective brainpower!]

“In an effort to liberalise the economy and shift to a better national economic model, I announced some reforms in June, which included the deregulation of Foreign Investment Committee guidelines,” he says. “The new national budget occupied much of my attention in October. Again, I invited you to share Budget 2010 ideas. In response, I received more than 400 comments and emails.” [Another new dialogue has been put in place.]

The prime minister’s first year in office coincided with the 35th anniversary of Malaysia-China relations, the highlight of which was his inaugural visit to China as prime minister, retracing his father’s steps.[The nostalgia must be heart-moving!]

Najib traveled to France in October, and came to Singapore for the Asia-Pacific Economic Cooperation Summit in November. He also visited the US, Trinidad and Tobago, Thailand and Denmark.

Last month, Najib launched a Facebook fan page that has drawn such a great response that “the popularity of the page took me by surprise”.

“I was sufficiently motivated to produce a series of special Facebook messages, including a video address on the issue of climate change in December,” he says. “I look forward to meeting my Internet friends and fans in programmes scheduled for next year.

“The year has certainly brought its share of rewards and challenges, but I look forward to 2010, so we can continue to chart our path together towards realising the 1 Malaysia concept in spirit and in practice. I hope you continue to join me in this effort.”

My Take:

He has as yet to list down the top 5 problems besetting the Malaysian community from religion to corruption to the affirmative policy concerns. His KPRAs are great but now we want to see action and not mere slogans which we have seen and heard for the last 51 years.

Can 2010 be a year of corrective policy actions for the people?

MIER: 2010-A Year of Bitter Reckoning?

Crystal-balling and scenario building, here comes MIER again with its tales of fortune and tales of woe for 2010.

Dr Mohamed Ariff Abdul Kareem who will be saying his last good-byes to MIER expected Malaysia to face tougher and more challenging times following concerns that the United States may be heading for a double-dip [W-shaped] recession.According to him, all anecdotal evidence clearly showed that Malaysia was out of recession.[Which is good!]

The country would register positive growth in the fourth quarter of this year [2009],and this would probably continue into 2010, he said.

“Initially, we thought it’ll be something like minus three to minus four per cent growth for this year.

“Now, looking at the numbers of the third quarter and the subsequent monthly data, we think the growth for this year will be in the region of minus two to minus three per cent,” he said.

For 2010, he anticipated the growth to be closer to four per cent. However, he said, 2010 would be a challenging year. Although the global economy was moving out of the recession, it was not completely out of the woods, he added.

“There are worries that the growth momentum that we are seeing now — not only in Malaysia but everywhere else — is somewhat fragile because the growth that we are seeing in the United States and Europe and some other countries are very much driven by fiscal stimulus packages,” Mohamed Ariff said.

He said that to keep the momentum going, these countries would probably need another dosage of fiscal stimulus.

“But the question is, can these countries afford to have another round of fiscal stimulus?”

“Many also think that that may not work in the first place. There are concerns of that sort that suggest there may be double dip in the United States in the first half of next year,” he said.

If that were to happen, he said, obviously there would be a lot of knock-on effects on other countries which United States has a good trade and economic connection.

Other concerns, he said, were the possibility of asset bubbles especially in China and many countries in East Asia and rising inflation.

“These asset bubbles may really cause problem if they were to breed sometime this year,” he said. He said that another worrisome factor was that all these countries had been printing money this year to finance part of their deficits.

“This extra money printed actually has not translated into higher prices because of repressed demand conditions. But once economy starts to recover, demand will begin to recover, there is a strong possibility of inflation re-emerging.

“If inflation were to rise, countries like Australia and Europe which are very sensitive to inflation numbers, may jack up interest rates. And if they jack up interest rates, then I think it will scuttle the growth process,” he said. Mohamed Ariff said Malaysia would probably not raise interest rates even if Europe would do so and Australia had already done it.

“The recovery that we see in Malaysia is very fragile. You are talking about four per cent growth only and this is way below Malaysia’s potential growth of 5.5 per cent

“So, the economy cannot afford to have a high interest rate regime at this point in time,” he said. Malaysia had to keep its interest rates relatively low to stimulate both consumption and investment, he added.

He said the country’s growth might reach its peak early and decelerate thereafter should the United States run into a double dip contraction in the first half of 2010, in which case Malaysia would have to put in some kind of stimulus package.

“There are already indications of the volatility,” he said, adding that Japan had shown some kind of deceleration after a positive growth in the third quarter.

Mohamed Ariff said Malaysia might need another RM8 billion to support what it had done before but introducing another stimulus would increase the government’s budget deficit since revenue was falling.

“In a way, this is a difficult time. I don’t think now is a cause for celebration. We are out of recession but we are going to be stuck in a slow, sluggish growth for at least two more years.

“We don’t really actually see the full growth trajectory until the year 2012. Until then, we will have to struggle or wrestle with this sluggish growth,” he lamented

Will he be right or will he be wrong?

That would be the 64,000 ringgit question to be answered in 2010.And Dr. Ariff may not be there to answer it!

AS1M-Flogging a Dead Horse

When something fails, there will be many theories flying around trying to put the finger on the causes and factors for it. And so today in the Malaysian Insider online newspaper, we have a take from Lee Wei Lian. The notations within parentheses are mine.]

"The undersubscription of the RM10 billion government-backed Amanah Saham 1Malaysia unit trust fund is likely due to the sheer volume of units available and wariness among some investors, according to analysts.

Only about a third of the fund has been subscribed so far and Permodalan Nasional Bhd (PNB), which manages the fund, has said that it will extend the subscription deadline for a third time since its launch in July.

This is in sharp contrast to PNB’s earlier funds such as Amanah Saham Malaysia and Amanah Saham Wawasan 2020, whose new units sold out quickly this year due to their track record of providing between six and eight per cent in returns.

Amanah Saham 1 Malaysia (AS1M) is PNB’s largest ever fund offering and getting the investing public to absorb all ten billion units would be more difficult than earlier funds, said market analysts canvassed by The Malaysian Insider.

Amanah Saham Malaysia, for example, was launched in 2000 with fewer than two billion units.

Investments in AS1M are also not capital guaranteed which affects its appeal.

Added to this is a perception among many investors that the size of the RM10 billion fund and its launch in the middle of the economic slowdown meant that the government is facing financial difficulties.

An analyst said that other investors might have held back as they were wary over what investments would be made with the AS1M fund because the information would only be disclosed in the annual report.

According to a recent news report, 85 per cent of the Chinese quota and 21 per cent of the Indian quota has been taken up.[This is good! What about the bumi portion?]

As 30 per cent of AS1M is set aside for Chinese investors and 15 per cent for Indian investors, and with only about 3 billion of the 10 billion available units taken up, this means an overwhelming portion of the unsubscribed units are those reserved for bumiputeras.

The low take up among bumiputeras could be due to a lack of familiarity with AS1M as it has to compete with other established PNB funds for attention.

One Malay investor in previous PNB funds such as Amanah Saham Bumiputera (ASB) and Amanah Saham Didik told The Malaysian Insider that there is some sceptism over AS1M.

“Funds such as ASB have been around a long time and people know what to expect,” she said. “People have other options. AS1M will have to differentiate itself.”

PNB has said it will have road shows nationwide to promote the AS1M starting with Perak and Sarawak in January followed by Sabah, Terengganu, Pahang and Melaka.

My Take:

The fund was way too large.

There was subscriber fatigue as the earlier Malaysian Bond and sukuk funds have taken out most of the available liquidity.

Also there was so much confusion on many issues. AS1M was perceived to be an inferior fund. There was that issue of costs which must be shouldered by unit-holders if they should sell off their units. PNB has been slow to allay all these fears.

Compared to the Malaysian Bond and sukuk funds,managed by Bank Negara, which guarantee a return of 5% whereby interest/dividend is paid quarterly, AS1M benchmarks itself to a miserly 3.75% rate of Malaysian Treasury Bond which was hardly appetizing enough to lure investors.

In parting, AS1M is a mockery to PM Najib's 1Malaysia concept. PNB should have thought through about the possible downside as perceived by the Malaysian citizens before convincing the PM to launch it. As usual, there is something wrong in PNB. What can you say about PNB after this failure. Will heads roll?

No, not in Bolehland Malaysia!

Malaysia: The Hotline that is Not On 24/7!

Ring yourself silly trying to get on the hotline to the Commercial Vehicles Licencing Board (CLVB)when you want to make a complaint against an errant taximan or a bus-driver. It will be akin to waiting for Godot! As usual these civil servants of today do not understand what is the concept of a 'hot-line'. To them it is just a recording and anything urgent cannot be urgent and can be resolved on the next working day!

Calls made to the Commercial Vehicles Licensing Board (CVLB) hotline at 1-800-88-9600 will be answered only during working hours between 9am and 5pm on weekdays.According the its Director,"Complaints made after office hours, on weekends and public holidays would be recorded and investigated on the next working day".

Do we need a 're-education programme" for civil servants in Malaysia? Looks like we do!

December 26, 2009

Border Petrol Purchase: Another Back Pedal!

In Malaysia,wonders never seems to end.After some major policy backpedaling,here's one more for the road!

FARIK ZOLKEPLI of the STAR has this to report today (27 December 2009).

Shell’s V-Power is now exempted from the 20-litre restriction imposed on foreign vehicles on the purchase of petrol within 50km of the border.

Che Halim Abd Rahman, Johor's Domestic Trade, Cooperatives and Consumerism Department director said the department had received a new directive from the Ministry on Thursday, stating that Shell V-Power was exempted.

“So only RON 95, RON 97 and diesel are included in the ruling."

“Shell V-Power is considered a premium grade of petrol,” he told The Star here yesterday.

He added that the new directive had been circulated to all departments nationwide.

Johor Baru MP Shahrir Samad said that the new development would complicate the issue.

“The fine-tuning of the ruling shows there are many weaknesses.

Flip flop, fine tuning, whatever- it shows that there is a dearth of brainpower in the civil service. So what is new? May be some more amusing flip flips come 2010?

December 25, 2009

Malaysia: Wish List 2010

"What do Malaysians want next year?" The Deputy News Editor of THE STAR, B.K. Sidhu reflects. Read her piece here.

"NEXT Friday, we herald in a new decade, which is the second decade of the 21st century.

Time Magazine described the first as “The Decade from Hell” mainly for those living in the United States as they had to deal with 9-11, Hurricane Katrina, anthrax letter scares, snipers on the loose, and the many Wall Street scandals.

The near collapse of the global financial markets left many in desperation and numerous businesses busted.

Will things get better in the next decade?

I do not have a crystal ball but experts believe we have yet to see the last of the financial meltdown amidst a tepid and fragile global recovery.

That aside, the spotlight is on Malaysia again as 2009 nears its close.

We have come under intense global scrutiny for the two jet-fighter engines, missing from a military base where security is supposed to be tight. To some people, this is a clear case of worsening corruption in the country.

We as a nation seem to have lost our way in the spurts of development over the years and those interviewed for the purpose of this column seemed to think that we have to go back to basics.

We need to undo some of the things before they get worse as we need to keep Malaysia safe and economically vibrant for the next generation.

Topping the list of things that need to be addressed urgently in 2010 are crime and corruption but equally important are other issues that affect the rakyat. Here is what they have to say:

1. Crime-busting: Malaysians need to feel safe in their homes and on the streets. Nip the menace of snatch thieves, burglaries and kidnapping in the bud.

Get the backyards cleaned up before going after the engine thieves or those involved in immoral activities. Safety is king for the rakyat.

2. Corruption: Malaysia now ranks 56th out of 180 countries in the world for the worst-corrupted nations, according to Transparency International. The engine fiasco may set us back by a few notches.

To stand tall again, the journey has to be mean and thorough, just get going to fight corruption.

3. Education: Human capital development starts from the foundation years and not when a child is in Form 4, 5 or university. Political will is needed to reform the education system, and get it right once and for all.

4. Green Malaysia: It is a nice thought but can we start by separating the garbage on a daily basis before doing bigger things?

5. GST: The Government needs to articulate better on policies regarding the goods and services tax (GST) or else there will be more debates than dialogues.

With GST and real property gains tax, taxes on goods and services should come down and personal income tax reduced. If Singapore’s income tax is at 20%, we should bring ours down to the same level.

Reducing taxes will put more money in the wallets of the rakyat and the people will then have a choice to either spend or save. Both ways will work well for the Government as there will be increased domestic consumption or savings.

6. Healthcare: The cost of healthcare is spiralling. While it is good to push for medical tourism, the Gini coefficient (as a measure of inequality of income or wealth) is widening.

That means healthcare and education may not be attainable to the ordinary wage earner in the foreseeable future, given our spiralling living costs.

Serious dialogues are necessary and perhaps a safety medical net is needed to make healthcare more affordable.

7. Childcare: We aspire to be a high-growth, high-income country and that means we cannot continue to have cheap labour. Parents need to work and they need to have someone to care for their children and the wages paid to do this are often low.

We need to devise a system whereby day-care centres for children can sprout and businesses chip in to fund the centres. In that way, the parents can work near the centres and, with businesses helping to fund the centres, the burden will not be so much on the Government.

The care givers should be certified professionals and, if done properly, this can create a new sub-sector in the services sector.

8. Too young to retire at 55 or even 58: Make it mandatory for people, both in the civil service and private sector, to retire at 60. Retiring people at 55 when they can still contribute is a sheer waste of talent. Re-look this policy and make a speedy decision.

To undo something will take time but, if no effort is made at all, things will only get worse."

But then, don't they sound almost like making new year resolutions on the individual level which oftentimes fail? To do all these is one lofty task. The powers to be seems powerless even to clean the backyard of their political parties, much less than to go after crimes,shoddy workmanship for civil work collapse and the multifaceted corruption that has mutated here in the country. Also much need to be done towards rebuilding the image of such institutions as the police,the MACC and the judiciary.

Back-pedaling on policy measures should also stop in 2009. Think before you act. The sad imbroglio involving the reversal of Science and Maths to be taught once more in Bahasa Malaysia, the controversial 10 to 12 subjects for the SPM, RPGT, 15 Years old mandatory check by PUSPAKOM and the silly credit card tax are making toes laugh!

Malaysia: We Aren't Bigots, Are We?

"A DAY IN THE LIFE OF AN ORDINARY MALAYSIAN" encapsulates the spirit of friendship in days of old before politicians 'screwed' it all up. During the days of the first premier, solutions to community problems between the races were easily settled over a durian party or a curry puff and teh tarik;these days it is not that easily done.

This nostalgic piece was written by Mariam Mokhtar on December 14. It was featured in the Malaysian Insider,an online newspaper on 26 December 2009. It makes interesting reading.

I append it whole-sale.

"I wake up and retrieve the newspaper lodged in the letter-box. My “[K....g] paper” has delivered it faithfully, come rain or shine.

I go to the kitchen and make breakfast. Into the toaster goes the bread sent to my home, the previous afternoon, by my “[K....g] roti”. It has been made by the local bakers, the FBI — Federal Bakery Ipoh — owned by an [Indian Muslim convert].

But if I am out for breakfast, it is usually a roti canai at my local Indian’s. Followed by a char koi tiau snack from “auntie”, a Chinese lady.

Halfway through the morning, the sound of a horn alerts me that Ah Fatt,our “grocer on wheels”, has arrived. He brings me fresh vegetables, fish and the usual dried condiments.

Once a month, our local “[K....g] botol” comes round to collect our empty bottles. Our “Cina paper” too comes to collect the old newspapers.

My neighbour comes round with some pisang [banana] grown in her garden. She is Indian, married to a Chinese policeman. I am grateful for his tips on how to keep my house secure. When my ubi kayu harvest is plentiful, I’d go round and return her kind gesture.

I have a gardener. His name is Velu. From the name, you can guess he is Indian. He is much adored by my children. If my son is not in his room, I know where to find him — under the mango tree, in the garden, sharing chapatti, dhall and “tapau” teh tarik with Velu. I told my son off for demolishing Velu’s packed breakfast, but Velu was happy to share his meal. Both were sporting toothless grins — Velu has no teeth and can’t afford dentures. My toddler has just lost his two front teeth.I’ve no idea what they chat and laugh about. Sometimes not a lot of gardening gets done. But who cares? At least they're happy. When Velu died, my son was distraught. He had been with our family for decades and refused to be pensioned off.

My general practitioner for the usual coughs and colds is Chinese. All women have a gynaecologist — mine is Indian. And my dentistis Chinese. These people provided services to my parents in the past, and I simply carried on with them. No complaints. Good service. Reasonable fee.

I did go to a Malay doctor once, but he was more interested in “tackling” my younger sister. I dismissed his lack of professionalism as testosterone driven. He was still a bachelor then.

And on the second visit, years later, he was fishing for information about other members of my family. One personal question might be excusable. But twice is too much of a coincidence. I never did return to him. In my eyes, his professional conduct was compromised by these intrusions. I know I shouldn’t be generalizing, but this was my personal experience.

When I had to be admitted to hospital, the surgeon who operated on me was Indian. The nurses were either Chinese or Indian.

I once had to use the services of a lawyer — an Indian.

The person who supplies me with stationery is a Chinese woman married to an Indian man. She once supplied my father’s business with his office stationery needs.

When I once had a leaky water tank, the plumber who successfully mended it was an Indian. He now takes care of all the house’s plumbing repairs. He was my parents’ plumber too.

When my house needed new electrical wiring, the electrician was a Chinese person. When I needed outside electrical work to be done, the electrician was Indian. Both had provided long-term services to the family.

Before Raya, I would go to my Chinese tailor to make my baju kurung. My hair is cut by a Chinese woman. As before, these people once supplied my mother, all her tailoring and hair-grooming requirements. My father’s barber is an Indian.

Again, before Raya, my mother’s Chinese friends at work would send tins of “love letters”, kueh kapit, for us to enjoy and serve at our open house. And early on Raya day itself, several plates of pie tee would arrive and my father’s Indian colleagues would send a big pot of chicken curry and putu mayam. The dining table groans with our rendang and the contributions from our friends, of all races and religions.

For several decades, until my parents were too old and infirm to receive guests, we would have an open house that was a riot of people sporting various national costumes. A real melting point — a true reflection of Malaysia.

These people once provided my grandparents and my parents essential services. Either that, or they were colleagues at work, or friends from their younger days. They, who have grown old alongside my grandparents and parents.

And now, people are telling me that these non-Malays whom I have grown up with and who have remained friends, through thick and thin, are second-class citizens? That they do not deserve to be Malaysians? That they are far inferior to me?

So am I to believe that should my neighbour’s husband, a Chinese, make the ultimate sacrifice in the line of duty, that his life is not as valuable as a Malay police-man’s?

"Who are these self-serving, self-righteous bigots kidding?"

Anyone would like to do a Masters in Sociology on how to improve upon ethnic relations in Malaysia? That should also make interesting reading.

Malaysia: On a Hope and a Prayer

It was an uneventful year at the Malaysia bourse. Those who got into the market in April made their cash pile and exited. That money must have gone into buying houses, renovation or bringing the family abroad for a holiday.

The other die-hards stayed on, averaged down on dips and continue to see losses. So who do the authoirites blame? Yes, on the lack of foreign interest and continuous selling out by foreign investors.

So on the wing of a prayer, the fund managers and 'futurologists' of the stock market i.e. the investment banks are expecting foreign interests to return and to go after key blue-chip government-linked companies and blue-chips with regional aspirations

FOREIGN interests are expected to return to Malaysia's equity market next year due to the announcement of the country's revitalisation and further liberalisation measures.

OSK Research, in its Investment Strategy for 2010, said foreign interests are expected to go for key blue-chip government-linked companies (GLCs) and blue-chips with regional aspirations.

It said the level of foreign shareholding in the broader Malaysian market and in blue-chips has fallen from the high in early 2007.

"It is only in a few select companies such as CIMB, that we see foreign ownership rose somewhat in the second half of 2009," it said.

OSK said blue-chip GLCs that had seen a lot of foreign selling previously such as CIMB, Axiata and Tenaga Nasional, would actually be among the key beneficiaries when these foreign interests return to Malaysia in a big way.

"Blue chips with regional aspirations like Genting and Hong Leong will also attract foreign interests," it said.

OSK said its three-pronged investment strategy for next year includes buying shares in firms which are likely to benefit from growing ties between Malaysia and China, the world's new growth engine.

Another is buying laggard blue-chips, including GLCs that would benefit from an increasingly performance-based culture, it said.

"Companies with regional growth endeavours will be a bonus," it said.

Let us see whether there is any foreign action when the new morn dawns in 2010 which is just mere days away.

December 24, 2009

The Many Faces of Christmas 2009

I have scouted for pictures. These are great and bring on the mood of the yuletide spirit. Have yourself a blessed Christmas and may the new year brings wondrous joy to you!





AS1M-Poor Product,Poor Response?

This will be the third time that the subscription of the Amanah Saham 1Malaysia (AS1M) share trust units managed by Permodalan Nasional Bhd (PNB) has been extended. The current deadline is December 31, 2009.

PNB Group CEO,Hamad Kama Piah Che Othman, said the extension, given according to the community allocation, will be third after the Sept 30, and Dec 31, 2009 deadlines.

To date, a total of 3.06 billion units of the AS1M have been subscribed by 235,288 investors. So far, 85 per cent of the quota given to the Chinese community has been subscribed, while another 21 per cent of the quota for Indian investors have been bought.

PNB said it will have road shows nationwide to promote the AS1M, beginning with Perak and Sarawak in January. Promotions will be also carried out in Sabah, Terengganu, Pahang and Melaka.

AS1M, a fixed price fund with a size of RM10 billion units, was launched on July 31 this year by Prime Minister Datuk Seri Najib Tun Razak. It is opened to all Malaysians with an allocation of 50 per cent for Bumiputera, 30 per cent for the Chinese community, 15 per cent for the Indian community and five per cent for others.

The silence on the uptake of the Bumiputra portion of AS1M is deafening!

Malaysia: New Currency Declaration Rule

Hot on the heels of the illegal transfer of huge amounts of cash out of the country, johnny-come-lately Bank Negara Malaysia is just warming up to the issue.

As usual, they use lofty terms to premise their belated actions.

In line with the global effort to combat money-laundering and terrorism financing, BNM has now issued a new currency declaration requirement at all entry and exit points in the country.

As usch, effective January 1,2010, travellers entering or leaving Malaysia with cash and/or negotiable bearer instruments (traveller’s cheques, bearer cheques) exceeding US$10,000 (RM34,000) must make a declaration in form Customs No. 22.

“The forms will be available at counters located before the Customs checkpoints at all entry and exit points of the country.

“Travellers could be fined up to RM1mil and/or face imprisonment not exceeding a term of one year if they fail to declare or make a false declaration,” it said in a statement here yesterday.

BNM said this was required under section 23 of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 and was in line with the Special Recommendation IX by the Financial Action Task Force which required countries to have measures in place to detect physical cross-border transportation of cash and negotiable bearer instruments.

“This new requirement is in line with global efforts to combat money-laundering and terrorist financing activities.

“Canada, Britain, Australia, New Zealand, Japan, Philippines and Singapore have adopted the same declaration requirement,” it said.

But why now, when a sitting Chief Minister and other wealthy individuals have absconded with so much money?

But there is Santa Claus!

Eight-year-old Virginia O'Hanlon wrote a letter to the editor of New York's Sun, and the quick response was printed as an unsigned editorial Sept. 21, 1897. The work of veteran newsman Francis Pharcellus Church has since become history's most reprinted newspaper editorial, appearing in part or whole in dozens of languages in books, movies, and other editorials, and on posters and stamps.

"DEAR EDITOR: I am 8 years old.
"Some of my little friends say there is no Santa Claus.
"Papa says, 'If you see it in THE SUN it's so.'
"Please tell me the truth; is there a Santa Claus?

"VIRGINIA O'HANLON.
"115 WEST NINETY-FIFTH STREET."

VIRGINIA, your little friends are wrong. They have been affected by the skepticism of a skeptical age. They do not believe except [what] they see. They think that nothing can be which is not comprehensible by their little minds. All minds, Virginia, whether they be men's or children's, are little. In this great universe of ours man is a mere insect, an ant, in his intellect, as compared with the boundless world about him, as measured by the intelligence capable of grasping the whole of truth and knowledge.

Yes, VIRGINIA, there is a Santa Claus. He exists as certainly as love and generosity and devotion exist, and you know that they abound and give to your life its highest beauty and joy. Alas! how dreary would be the world if there were no Santa Claus. It would be as dreary as if there were no VIRGINIAS. There would be no childlike faith then, no poetry, no romance to make tolerable this existence. We should have no enjoyment, except in sense and sight. The eternal light with which childhood fills the world would be extinguished.

Not believe in Santa Claus! You might as well not believe in fairies! You might get your papa to hire men to watch in all the chimneys on Christmas Eve to catch Santa Claus, but even if they did not see Santa Claus coming down, what would that prove? Nobody sees Santa Claus, but that is no sign that there is no Santa Claus. The most real things in the world are those that neither children nor men can see. Did you ever see fairies dancing on the lawn? Of course not, but that's no proof that they are not there. Nobody can conceive or imagine all the wonders there are unseen and unseeable in the world.

You may tear apart the baby's rattle and see what makes the noise inside, but there is a veil covering the unseen world which not the strongest man, nor even the united strength of all the strongest men that ever lived, could tear apart. Only faith, fancy, poetry, love, romance, can push aside that curtain and view and picture the supernal beauty and glory beyond. Is it all real? Ah, VIRGINIA, in all this world there is nothing else real and abiding.

No Santa Claus! Thank God! he lives, and he lives forever. A thousand years from now, Virginia, nay, ten times ten thousand years from now, he will continue to make glad the heart of childhood.

A Splash of Cool Water

This is a great graphic presentation of the effects of a splash of cool water on a hot humid day.


Enjoy!

December 23, 2009

Najib: What He Said in 2009

Bernama has deemed it fit to list down all the important pronouncements of Premier Najib in 2009.

I append the article in toto.

The year 2009 has opened a new chapter for PM Najib who took over the country’s leadership in April. As the new prime minister, every speech, directive and comment made has claimed attention from the masses. Below are some of the interesting quotes by the prime minister this year.

• I urge us to rise to the challenge of building a 1 Malaysia. People First. Performance Now. (April 3: On assuming office as the sixth prime minister)

• BN will keep the promises and we will deliver them. We will do away with the practice of announcing “instant noodle” projects during elections. If certain projects would benefit the people and we had promised that to them or committed on them in the elections, we will definitely implement them. (April 5: Commenting on the Bukit Selambau, Bukit Gantang and Batang Ai by-elections results)

• I don’t crave power for the sake of power but I need power to serve the people and ensure successful nation building. (May 20: Addressing a farewell reception at the Finance Ministry)

• The 1 Malaysia is not a new concept or formula but its ultimate objective is national unity, which is the primary vision of previous administrators translated into various forms over the last five decades or so.

• In other words, 1 Malaysia is a concept to foster unity in Malaysians of all races based on several important values which should become the practice of every Malaysian. (June 15: Replying on the 1 Malaysia concept during question time in the Dewan Rakyat)

• “We need not carry the label ‘development with Islam’ because we have been championing the cause of Islam for a long time and had provided a prosperous life to Muslims because we don’t want the Muslims to be poor and without strength. (10/9: at a breaking of fast at Felda Teloi Timor)

• I’ve gone to several places to meet the people. As leaders, if we go visiting without protocol and without the red-carpet welcome, the bunga manggar or any special reception, but we sit down with the people over drinks and hear their problems, the people will remain with us (13/9: speaking in Tawa at a breaking of fast and handing-over of charity contributions to orphans and the poor.)

• I would like to see that we all have a sense of belonging in Malaysia, irrespective of our race, and feel that this is our country. This is our birthplace, this is the country that we will give our undivided loyalty and commitment to. If we can have the resolve, it means we have already reached the stage of embracing the 1 Malaysia concept. I always say “One Dream, One People, One Nation.(13/10:exclusive interview with Bernama in conjunction with the 2009 Umno General Assembly)

• Umno should be seen, regarded and trusted as a party that is capable of looking after the lot of the people. Umno cannot be seen as a party which is only passionate about struggling for the interest of a small group. Instead, we want Umno to be seen, felt and fully trusted as a party that is inclusive and that puts the interests of the people before personal interests. Therefore, the perception that Umno is a party for people to “cari makan” (earn a living) must be erased and discarded. (15/10: maiden speech as Umno president in conjunction with the 2009 Umno General Assembly)

• Believe it, that our struggle is the right struggle, that our struggle is a true struggle. We are Umno, the one party that brings the flame of hope and is capable of charting a bright future for the people.

• Whatever the challenges, whatever the hurdles, with a mount of hope, we continue this journey with confidence, all dreams will be fulfilled, a drop will become an ocean, a clump will become a mountain. (15/10: maiden speech as Umno president in conjunction with the 2009 Umno General Assembly)

• After we’ve made the amendments, we begin a new journey by leaving behind the negative elements such as money politics, so that we become a clean and respected party. (15/10: maiden speech as Umno president in conjunction with the 2009 Umno General Assembly)

• I have to make a decision in the interests of the BN. I am not merely the president of Umno; I am also the chairman of the BN. I am the prime minister not only for the Malays; I am the prime minister for all Malaysians. (1/11: opening Gerakan national delegates conference)

• We will change for the better. I give you the commitment, we will change for the better. But I ask (that it should be) not only me. Do not just look at the prime minister; we all must reflect the change. We must be like the train. (When) the train is moving ... it cannot be the locomotive alone ... everybody else must work together. (1/11: opening Gerakan national delegates)

• There is no need to bang tables or throw files at them but those who do not perform must be told of their dismal performance and the need for them to improve. (2/11: Prime Minister’s Department staff at its monthly gathering)

• Subsidies is an illness, once you enjoy it, it is hard to give up. (4/11:speaking at Bankers Club Luncheon Talk)

• I believe that as the Prime Minister of all Malaysians, it is vital that I personally supervise the effectuation of the first budget under my administration. (11/11: Blog 1 Malaysia: Implementing the 1 Malaysia Budget)

• I have been saying privately, but I might as well say it publicly, that the thing I liked about President Bush’s foreign policy is that he was very pro-free trade. Frankly I don’t like the other policies, but I like his policy on free trade. (14/11: panel session at the Apec CEO Summit 2009).

• Our diversity must be a blessing if it is not to be a curse (21/11: keynote address to open Asia Society’s Asia 21 Young Leader Summit). — Bernama

The Axiata Road Map

Having spent two years beefing up its foundation, Axiata has its eyes set on becoming the first among equals in the regional telecommunications scene by 2015.

Since its spin-off from Telekom Malaysia, Axiata has embarked on a strategy aimed at transforming itself into a top regional mobile operator group.

The road map and journey is split into three phases.

The first phase, which has been completed, was about setting the foundations right.

The second phase, which will be implemented between 2010 and 2012,will have Axiara competing on par with its regional peers such as SingTel and Hutchison.

The third phase beginning from 2013 to 2015 will be delivery day to become the region's top mobile operator group.

Jamaludin Ibrahim paints his picture like this.

"The second phase is what I call a 'game changing' phase, in terms of financial performance, business model and even the products that we have. Like a football club, we are now promoted, and we will be competing with the big boys in the premier league. Not good enough to be champions yet, but good enough to compete,"

Axiata, which grew its third-quarter and nine-month net profit by 106.5 per cent and 8 per cent to RM503.7 million and RM1.09 billion respectively, assures investors that they can expect better performance from the company in its second phase.

"In general, investors can expect stronger revenue and profit in the second phase. In terms of absolute numbers, Celcom and XL will still be contributing the most. But in terms of growth, we expect Bangladesh and Indonesia to be the key drivers," says Jamaluddin.

The company has allocated not more than RM3.5 billion as capital expenditure (capex) next year, the bulk of it will be for its Indonesian operations. The funds will be generated internally by the operating companies. For 2009, the company allocated some RM4.2 billion for capex.

"The final capex number is not finalised yet, we intend to reduce the amount significantly," said Jamaludin.

For next year, Jamaludin expects competition to remain intense in most of the countries it has operations. However, he said competition in India, Bangladesh and Sri Lanka may be "exceptionally challenging" next year.

"We have competition in Malaysia and Indonesia, but we foresee the potential of increased intensity, beyond what we think is normal, especially in India, Bangladesh and Sri Lanka. We are already seeing it in India, and it may continue or worsen.

"These 'beyond normal' activities include price wars, irrational pricing and others. For example, the Indian telecommunications industry saw its revenue per minute decreasing by roughly 20 per cent within one quarter, that's not normal," explained Jamaludin.

Mobile broadband, which was one of the keys to wholly-owned Celcom (Malaysia) Bhd's successful 14 consecutive quarterly revenue and earnings growth, is expected to play a bigger role in Axiata's other operating companies next year.

"For 2010, apart from the normal business as usual growth, which is through network coverage, we also see growth from mobile broadband. Celcom has been successful with its mobile broadband strategy and by end of this year, we expect 3 to 5 per cent of Celcom's revenue to come from mobile broadband. Now, we are looking at doing the same thing in Indonesia and Sri Lanka.

"Next year, we will be doing mobile broadband in a big way. For example, we will be investing between US$100 million and US$150 million (RM344 million-RM516 million) for mobile broadband in XL alone," he added.

With the investment, XL will be able to cover most key urban areas with the high speed wireless network.

So like a tangram, Axiata is moving direction. If it gets itself right, Axiata will bloom!

Watch Your Language at Home or Else....

This will happen.


This was taken from a real spelling exercise in class.

We may laugh in jest but it is no laughing matter if your child says and spells that way too!

RPGT: A Better Redefinition for Action

Let us see how many flip flops there has been since the announcement of Budget 2010.

First to get the axe was the decision to mandatorily compel owners of cars aging 15 years above to subject their cars for PUSPAKOM check before roadtax could be issued. It went down because vintage car owners were up in arms.

The second policy reversal was on credit cards. Now it is no more government tax for current card holders until their card renewal dates next year. Only new card holders need pay the RM50 tax.

Yesterday, PM Najib decided to humour the housing industry. He has now reworded the policy to effect the 5% RPGT only for sale of houses within 5 years of purchase.

If you add the hullabaloo of the 10 to 12 subjects change for SPM students, that would be 4 backpedals in all.

I wonder who advised PM Najib on all of these. These advisers should be put to pasture before they do more harm to the economy of Malaysia and its people.