February 24, 2010

Malaysia: Homeless in KL

This article written by Mugunan Vanar and Joshua Foong on the Online STAR is most distrubing.

It is shocking to discover that some 400 homeless Sabah youths are loitering around Jalan Masjid India, the Dayabumi Complex, Klang bus station and Bukit Nanas in Kuala Lumpur every night, sleeping along roadsides, parks or buildings and have to forage for leftover food just like animals.

Most of them come from the interiors of Sabah.


One of the youths interviewed , Apai John from Tenom, said he had been without a job for four years.

Their plight has been highlighted by the Catholic church and NGOs like the Kechara Soup Kitchen Society (KSK) and Street Fellowship. Strangely, the government departments in charge of social welfare or human resources do not report this.

The NGOs claimed that the Sabahans roamed the streets and relied on free meals after they lost their jobs or were cheated by bogus employment agents.

“Most of them are young – 16 to 25 years old – and are hoping to seek employment in the Klang Valley,” said KSK treasurer Julia Tan who leads her group of volunteers to distribute food to the homeless every Saturday and Sunday.

“Those who are still unemployed mingle with the homeless in the city,” she added.

“When I ask them why they choose to stay on, they said there are more opportunities here for them to earn a living than returning to Sabah,” she added.

Yang di-Pertua Negri Tun Ahmadshah Abdullah recently said the Sabah government should assist homeless Sabahans to return home if the cases were genuine.

The Sabah Government has since recognised this problem.Apart from bringing them home, they should look for stable jobs for them.

I do hope a land of plenty such as Malaysia should have programmes or jobs in place in their NKRA for these able-bodied youths. Letting them to loiter the nights on streets is a sheer waste of manpower!

Thailand: Foreign Funds Return

There are signs that foreign funds are returning to the bourse of Thailand.These are coming here because of stronger corporate profits despite concern over political unrest. The continuous foreign buying over the past few days is apparent that they have discounted the fate of Thaksin's illegally acquired properties in the Thail courts.


Foreigners accounted for about 30 per cent of daily trade in 2009.

A noteworty stock, Land & Houses, Thailand’s largest housing developer, is forecast to report a 14 per cent gain in 2009 net profit after the market closes, due to higher sales of detached houses and condominiums.

So, when will foreign interests come back to Bursar KL which the Second Finance Minister described as wholly "un-sexy" to attract any foreign interest. This is not only a laugh on his language expression but also on the kinds of rules we are operating under.

Will Bursar ever play by global rules?

Malaysia: More Backpeddling?

Malaysia's Barisan Nasional Government (BN) has now become an expert in back-peddling,so it seems.


It started with the much touted policy to get rid of more than 15-years old car off the road. This was to increase the sales of Proton and Perodua cars. However, they came head-on with 'old-timers' who are in love with antique cars such as the 'uncles' from FELDA plantations and ex-teachers who loved their well- maintained Volkswagens. So, they scrapped the policy for the RM5,000 trade-in for really old cars. The move was a success and it certainly propped the number of cars sold for Proton. As far as Perodua is concerned,  it just accelerated its sales of  Myvi.

Then they back-pedaled on the 5% real property gains tax. The all-encompassing policy of taxing property that is sold, regardless of how old the property was, came under heavy volley of fire. Apart from the property developers who complained it may negatively affect the industry, first time sellers intending to upgrade felt this as wholly unfair.

And so after some thumb twiddling, it was amended that only properties sold 5 years  before the Sales and Purchase Agreement will attract this tax.

Next, came the policy decision to limit the subjects to be taken at the SPM. The brand-new Minister of Education, to ensure he leaves his mark,capped the maximum subjects at 10. As usual he raised a commotion when he left vernacular education subjects out of this maximum 10. So, a component Barisan Nasional party through NGOs, clamoured that the pupil's mother tongue be included.

The Minister grudgingly relented and allowed 12 subjects but he put in a caveat. Only the 10 subjects originally sanctioned and not the additional two subject papers will be considered for government scholarships. That threw a spanner into the works until this day.[The worse policy decision by far is the reversal to Bahasa Malaysia in teaching Math and Science!]

Yesterday, they just pedaled the much discussed subsidy scheme procedures for petrol in May 2010. We do not know why they have decided on the need of a better system. Thne they also deferred on the new tariff for Tenaga?

What do all this portend?

Very likely it is because of the impending state elections in Sarawak where the fear is very real this time that some native areas may succumbed to the opposition because of unresolved native issues. Apaprently, urban seats are also under siege.

Or is it because the General elections is going to be held with 12 months using the Sarawak elections outcome as the bench-marker? This is possible in order to resolve many issues, most particularly, the Perak political situation,outside the court system, for once and for all.

Malaysia:The Financial Sector's Resilience

Malaysia: A Resilient Financial Sector



The country’s financial sector remained resilient in the fourth quarter of 2009 with strong capitalisation, improving non-performing loan (NPL) ratio and ample liquidity.Bank Negara Malaysia (BNM) said this in a statement today.


The banking, insurance and takaful sectors recorded improved profitability in the quarter.


This enabled the financial sector to continue supporting financing activity and providing the necessary financial services to the economy, the central bank added.


As at end-December 2009, the risk-weighted capital ratio of the banking system was 14.7 pct while core capital ratio stood at 13.1 pct.

Capital in excess of the minimum regulatory requirement was maintained at more than RM50 billion.


Loan quality remained favourable with the continued downtrend in NPLs, reported BNM.


The net NPL ratio improved to 1.8 pct as at the end of the quarter, with a loan-loss coverage of 95.2 pct.


The banking system recorded a pre-tax profit that totalled RM5.2 billion during the quarter, supported by an increase in fee-based income and higher investment gains, it added.


BNM assured the capital adequacy ratio of the insurance industry remained strong at 230.3 pct (third quarter 2009: 214.7 pct).

Overall profitability of the insurance and takaful sector increased to RM3.7 billion (fourth quarter 2008: RM1.7 billion), driven mainly by improvements in the performance of the equity market and in business conditions.

Malaysia: Better GDP Growth in 4th Quarter 2009

 

The Malaysian economy grew by 4.5 pct for the fourth quarter of 2009, although GDP for the year still shrank slightly by 1.7 pct. This was lower than the projected -3 pct.

The positive growth in Q4 was helped largely by the government’s push to pump some RM1 billion a month into the economy. This had resulted in the country’s economic performance faring better than expected.

The government has set a target for growing the economy this year by five per cent which should be achievable barring unforeseen circumstances.

Increased public sector consumption also helped push growth into positive territory.

Public sector consumption expenditure expanded further by 1.3 per cent while public sector capital spending increased substantially as the implementation of projects under the quarter kicked in.

During the fourth quarter, the development expenditure of the federal government amounted to RM17.6 billion.

This was an increase of 9.5 per cent compared with the fourth quarter of 2008.
PM Najib believes that the implementation of the two government stimulus packages were key to the economic recovery.

“Over 113,000 projects under the two stimulus packages have and are being implemented, involving a total value of RM17 billion. Out of that, the government has made a payment of RM13.9 billion. Therefore on average, the government has pumped approximately RM1 billion per month into the market from January 2009.
Najib said he expected the private sector capital spending to increase this year.

“There are emerging signs of stabilization in the private sector capital spending as business sentiments continue to improve. This together with the higher public sector capital spending contributed to the turnaround in total gross fixed capital formation which registered a positive growth of 8.2 per cent during the quarter.

“On the supply side, all economic sectors recorded improved performance during the quarter. Growth in the services sector was broad based, with almost all sub-sectors recording higher growth rates. The manufacturing sector recovered to register a positive growth of 5.3 per cent, reflecting the improvement in both external and domestic demand.

“Activities in the construction sector expanded strongly by 9.2 per cent, benefiting primarily the accelerated implementation of projects under the fiscal stimulus packages and the ninth Malaysia plan,” he said.
The country’s export also recorded a positive growth of 5.1 per cent compared to -22.4 per cent in the third quarter.

Foreign direct investment also increased in 2009 to RM7.2 billion compared from RM6.7 billion with investments mainly in the manufacturing and services sector.
Najib said he was confident that the country would maintain its economic growth.
“For Malaysia the economy, yes (we can expect that the worse is over). Provided nothing seriously unexpected happens with respect to the global economy. For example any major sovereign collapse.

“Barring unforeseen circumstances of that nature, we could safely say that we have recovered from the crisis and we should be looking forward to a strong growth for 2010,” he said.

Najib said he expected the economy to grow by five per cent this year.

“As you know earlier forecast was four per cent but for this year, I am hoping that I can achieve one or two per cent more than that so we are going all out to make sure that we are able to generate the confidence and speedy implementation of projects.”

Zhang Zilin: World at Her Feet

AS1M-Dismal /Subscription Performance

The Amanah Saham 1Malaysia (AS 1 Malaysia) has attracted 244,117 investors who have subscribed 3.40 billion units in the equity income fund.

He said three billion units, of RM1 each, reserved for the Chinese saw a take-up rate of 89 per cent.



The RM10 billion fund, launched by Prime Minister Datuk Seri Najib Tun Razak on July 31, 2009, is open to Malaysians aged 18 and above on a quota basis whereby 50 per cent of the shares are allocated for Bumiputeras, 30 per cent Chinese, 15 per cent Indians and the remaining 5 per cent to other groups.

Axiata's Comeback


Axiata posted better-than-expected net profit for 2009. It reported a fourth-quarter net profit of 558.28 million ringgit ($164 million), compared to a net loss of 515.25 million ringgit in the year-ago period.Full-year net profit more than tripled to 1.65 billion ringgit, exceeding the average forecast of 1.365 billion ringgit by 20 analysts polled by Thomson Reuters.

Its Malaysian unit Celcom is the No.2 mobile phone brand and the biggest wireless broadband services provider in the country.Axiata also owns the “Hello” brand in Cambodia, the “Aktel” brand in Bangladesh and the “Dialog” brand in Sri Lanka.In Indonesia, it operates the “XL” brand via 86 percent-owned XL Axiata, Indonesia’s third-largest mobile phone operator.

Among its local rivals, DiGi operates only in Malaysia and Maxis Berhad houses just Maxis Communications’ Malaysian operations, making Axiata the only listed telecommunication company in the country that offers investors regional exposure.

Shares of Axiata have outperformed rivals so far this year with a 13 per cent gain. DiGi, controlled by Norwegian telecom firm Telenor, has gained 3 per cent and Maxis was up 2 per cent.

Controlled by Khazanah Nasional, the investment arm of the Ministry of Finance, Axiata has 120 million mobile subscribers across Asia.

“Key risks continued to be faced by our operating companies include increasing competition and regulatory challenges,” said Axiata.

Zhang ZiLin:Chinese Beauty

 
ZahgZi Lin