May 26, 2010

Malaysia: Cut Off Subsidies or be Greece


The Federal Government says it will save RM103 billion over the next five years if it starts to cut subsidies now. 

Datuk Seri Idris Jala , who is in charge of the Government Transformation Plan (GTP), said today Malaysia had a whopping RM362 billion debt and must start reducing subsidies amounting to RM74 billion last year to avoid becoming a bankrupt nation by 2019.

“We do not want to end up like Greece,” the minister in the Prime Minister’s Department told a packed hall at the government’s open day to rationalise subsidies here this morning.

But my friend, how about seriously trimming down a bloated civil service, wiping out corruption and preventing wastage at the same time?

So kawan, let us have a more holistic approach to save Malaysia from financial ruin, okay?

Subsidies alone is not the culprit...............

Praise to the 'Sinner' Class


In days of old, tax collectors rank on equal footing as doctors and grave diggers. They were considered as  the ' sinful class' for the jobs they do. Today,except for the grave-diggers,the doctors have become a most favoured worker category and now tax collectors are even exalted and paid bonuses.

This latest accolade to Malaysian tax collectors is sufficient testimony.

" The Inland Revenue Board (IRB) has taken home a RM1mil incentive for winning the Prime Minister’s Innovation Award.

The reward, said Prime Minister Datuk Seri Najib Tun Razak, could be used in any way deemed meaningful by the board – including for training purposes or to be given out as bonus.

Najib hoped the award would be a strong encouragement for the department – all the way from the head of department to the lowest level of staff – to want to perform even better.

The Prime Minister presented the award at a ceremony yesterday.

IRB chief executive officer Datuk Hasmah Abdullah said the department had always been negatively perceived by the public, but this would not dampen its determination to keep improving.

“Many people have the common perception that paying taxes is burdening. Our key to innovation is to make tax payment easy and we have done it successfully,” she said after receiving the award from Najib.

Earlier in his speech, Najib said Malaysia had no choice but to be willing to embrace change in this globalised era. The public sector must be able to think out of the box and be creative to bring about development.

“We need to engage new methodology and approach because other countries which were not our competitors before have changed and are competing against us,” he said.

He added that the Government sector had taken a big leap when it introduced the National Key Result Areas and Key Performance Index to ensure that the country was not lagging behind when others were moving forward.

“There must be innovation in the government administration to ensure that its outcome will please and satisfy the rakyat,” he said."

To my mind, the IRB has definitely improved particularly in electronic submissions and tax refunds.

Syabas, IRB!

Mah Sing Turning Magical


Mah Sing Bhd posted a net profit of RM27.9mil in the first quarter ended March 31, 2010, 23.2% higher compared with the same period last year.

In a filing with Bursa Malaysia, the group said its revenue rose 58.5% to RM238.3 in the quarter under review.
It said the result was mainly driven by better performance of its property and plastic divisions.

“Apart from property development, our plastics division also contributed positively to the quarter’s earnings,” it said.

The group achieved strong sales of RM601mil in the first quarter, which is 60% of the full year target of RM1bil.

It said the group would continue its innovative marketing strategies to promote quality properties with good concepts in prime locations.

As at March 31, the group has unbilled sales of about RM1.1bil, giving them significant earnings visibility.

This may be a stock to watch as it is now a potential boutique developer like SP Setia and Sunrise.