Archive for the 'Economy' Category

Penang welcomes the Federal Government’s initiative by Prime Minister Dato’ Sri Najib Tun Razak to co-develop a Greater Penang Masterplan, which will ultimately result in a major urban conurbation in line with the Penang State Government’s vision of creating an international and intelligent city.

We look forward to a cooperative venture. In response and to prove our sincerity and commitment to the Prime Minister’s offer, the State Government is willing to set aside our completed Penang Blueprint and Industrial Masterplan for 2011-2015, in favour of the Greater Penang Masterplan.
Continue reading ‘Penang welcomes the Federal Government’s initiative by Prime Minister Dato’ Sri Najib Tun Razak to co-develop a Greater Penang Masterplan’

DAP expresses disappointment at the declaration by EPF of a mere 5.8% dividend or RM 21.61 billion payout for 2010 as inadequate and not commensurate with the 40% increase in EPF gross investment income of RM24.06 billion as compared to 2009′s RM17.22 billion. As compared to 2009’s 5.65% dividend, this increase of only 0.15% to 5.8% dividend does not reflect the economic recovery of Malaysia in 2010 with an expected growth rate of 7.2%

Despite Malaysia suffering a recession in 2009 with negative growth rate of -1.7%, EPF could still pay 5.65%. It does not make sense that with an expected growth rate of 7.2% there is only a marginal increase in dividend rate to 5.8%.
Continue reading ‘The Employees Provident Fund (EPF) 5.8 % Dividend Or RM21.61 Billion Payout For 2010 As Compared To 2009’s 5.65% Is Inadequate And Not Commensurate With The 40% Increase In EPF’s Gross Investment Income.’

The topic of discussion today is ‘The Rise of Asia and China’s Role’. I can conceive of two fruitful approaches in which we can discuss this very general topic in greater depth and detail.

The first approach is to discuss China’s role in ensuring continued economic growth for itself as well as for the region as a whole and perhaps touch briefly on how Asia’s economic strength can be leveraged into other areas of influence in the larger geo-political environment.

The second approach is to broach this topic from the perspective of the role of other countries in Asia vis-à-vis their China and how these countries can be a positive influence in aligning the interest of China with the region so that Asia can continue its rapid climb, economically and politically. One may look at both approaches at two sides of the same coin.
Continue reading ‘China Has Replaced Singapore, USA and Japan As Malaysia’s Largest Trading Partner In 2009.’

DAP is shocked at the revelations by UEM Group MD Datuk Izzaddin Idris that toll highway operator PLUS Expressways Bhd could be compensated as much as RM5 billion by the Federal government over the next five years for not raising toll rates. Clearly freezing toll rates is meaningless as the people still has to pay through compensation payments by the government.

Worse, the government still owes PLUS RM 2.5 billion making the total compensation amount to be paid for the next 5 years a total of RM 7.5 billion! In fact, PLUS would be pleased to be compensated as they would be paid money without having to work for it.

The time has come for the Federal government to consider a one-off nationalization program limited to toll concession agreements in the national interest. Nationalization of toll concession agreements is necessary to prevent irresponsible toll concession companies from reaping extraordinary profits at the expense of the public.

Nationalization is necessary when toll concession operators like PLUS have not only recouped their investment and construction costs but also maintenance costs and are earning pure profits from toll rates revenue collected. Failure to do so will not only create an unbearable financial burden to the people but also strain our country’s finances for the foreseeable future.

The principal negative impact is that compensating PLUS RM 5 billion for the next 5 years for freezing toll rates will only increase both Federal government debt and debt service charges to even more unhealthy levels. According to the Ministry of Finance Economic Report 2010/2011, the total federal government debt would soar by 12.6% from RM 362.4 billion in 2009 to RM 408.2 billion in 2010. This works out to RM 15,118 in debt for each of the 27 million Malaysians as at 2010.

In other words for every Malaysian born, he or she will be immediately in debt of RM 15,118. If we take into account paying an extra RM 1 billion every year to PLUS, it is an expense and a debt burden that the country can ill-afford.(see following table)

Correspondingly, debt service charges have increased from RM 14.2 billion in 2009 to RM 15.9 billion in 2010 and expected to soar to RM 18.6 billion in 2011. Many Malaysians are unhappy why the country has to carry such a huge debt burden borne by 27 million Malaysians for the benefit of one company. Clearly unless drastic action is taken, 27 million Malaysians will lose out to enable a company comprise of BN cronies to gain.
LIM GUAN ENG

KEYNOTE ADDRESS BY THE CHIEF MINISTER OF PENANG LIM GUAN ENG AT THE PENANG OUTLOOK FORUM 2010
On 3 JUNE 20101 IN SINGAPORE:

Penang’s Focus On Penang’s Human Resources To Propel Penang Forward As An International City, High-Income & Knowledge Economy With A GDP Of RM 45 Billion And Per Capita Income Of RM50,000 By 2020.

Continue reading ‘Penang’s Focus On Penang’s Human Resources To Propel Penang Forward’

In conjunction with Labour Day 2010, DAP urges the federal government to introduce a two-tier system of a compulsory minimum wage to ensure all our workers would earn basic salary above the poverty level and an aspirational fair wage.

Minimum wage

The absolute poverty rate in Malaysia is at 3.6 per cent, yet there are reports that some workers are still earning basic wages below the poverty line. Since the minimum wage is the lowest salary level that employers are legally bound to pay, I would like to propose a minimum monthly wage based on the poverty line of RM720 in Peninsular Malaysia, RM960 in Sabah and RM830 in Sarawak.

Although it may not sound much to some people, it must be understood that are still a lot of workers earning less than RM720 a month in this country. The minimum wage must be based on poverty level, and as such, different basic wages will paid in different states, according to the poverty line, as long as it is above the level.

Employers should not be alarmed by this proposal as this would only benefit them in the long run. The minimum wage will alleviate problems faced by their respective workers from the pressure of the ever-increasing costs of living such as prices of food, petrol, public transportation, lodging and other bills to be paid monthly. Such a personal pressure can affect a worker’s productivity and creativity.

Continue reading ‘DAP urges the federal government to introduce a two-tier system of a compulsory minimum wage and fair wage’

What is heartbreaking about the current economic crisis, caused by the collapse of key financial institutions in the West, is that the culprits are seldom the victims. This is one of the negative effects of globalization where abuses by those involved in the collapse of the western financial system can have dire consequences of deep financial distress, losses and sufferings to innocent people half a world away in Asia. Worse those involved often escaped unpunished and can go back to have their exorbitant bonuses.

There are 5 lessons to be learnt. Lesson One is this: Without transparency and accountability, arrogance takes over which invariably ends in disaster, for everyone.

Continue reading ’6 Aspects Of “Think Globally, Act Locally” For Penang To Succeed In Transforming Itself As An International City, A Knowledge-Intensive And High-Income Economy.’