Malaysia Today - Your Source of Independent News

The Malaysian Economic Slip-Up
Selangor Should Follow Penang In Water Deal
PM Should Answer To Ani Arope’s Revelation On EPU Being Responsible For Gas Subsidy Scandal

Posted: 05 Jun 2011 08:29 PM PDT

By Thuraisingham Shun

The recent Economic Transformation Programme has created much confusion about our country's direction in achieving economic goals.

First, we had the outdated Vision 2020 programme, followed by the 1st Malaysian Concept, then the New Economic Model, now the Economic Transformation Programme and next the 10th Malaysian Plan. This is "economic ROJAK". All these confuse the citizens as to where the Government is heading. It is time that our Prime Minister unveils a constructive consolidated economic outline.

The set draft plan should include detailed implementable strategies, to be reviewed every six months, to ensure proper implementation targets are achieved. Negated implementation should be revised immediately.

"The Economic Transformation agenda is co-created by the private sector" said Dato' Idris Jala. This is not true – the introduction of this New Economic trust, was unveiled by the Minister, then it was the CEO Forum which dwelt on the presence of their role play. The public was not given a chance to air their views. The whole scenario was a pyramid system with a top to bottom thrust. The grassroots who form the base for the pyramid system did not have the opportunity, they were not provided the chance to express their views.

Any success of the New Economic outlined by or Prime Minister, must be reflected by a Public Sector Initiative. The middle income trap is a true reflection of the Malaysian scenario. The middle income group is sinking into the lower income group base.

In the forum themed "Economic Transformation Forum: The View from the Public Sector", there was no opportunity for the private sector to express their views. Likewise, immediate response for audience with the Minister from the representatives from the Cooperative sector, which represents 8000 cooperatives with a membership of 8 million, snowballing to 17 million with family members included and with an asset backing of RM79 billion, was negated by the little napoleons (a decision made by themselves at the nick of time) as the Minister is too busy.

The Prime Minister's emphasis of WALK THE TALK has failed. The authorities concerned must wake up. The citizens call the shots, according to the time capsule. Of late, the Prime Minister's words of wisdom on the "Evil of ignorance" befit the economic agenda. The root cause of doubts on the economic agenda is the misunderstanding of statements and misapprehension and conflict caused by ignorance. The I know syndrome exists no more.

The Malaysian civil service has reached the state of incompetence and stagnancy. The realm of our 54th independence needs a total revamp. Our Prime Minister is well set for a change – a change for the better. His generals must be prepared for a change of mentality, the I know syndrome is outdated.

It is noted that the transformation agenda entails the Vision 2020 statement which is outdated. We have to rise above the occasion to the ideas of the 21st century agenda and globalization. It was highlighted in the Journal of International Centre for Excellence that Vision 2020 was in dire peril. Likewise, the McKenzie Report also amplified this. Vision 2020 has to end its era within 31 December 2011; the dawn of a new era has to be formulated within the realms of Malaysia. The New Economic Model and the forthcoming 10th Malaysia Plan must be consolidated for a new direction to meet the challenges of globalization and the thrust for the 21st millennium agenda.

The Malaysian Cooperative fraternity of above 8000 cooperatives with a membership of above 8 million, snowballing to 17 million with family members incorporated and the Private Sector Initiatives will be the order of the day.

Thuraisingham Shun

Cooperative Consultant and Advisor,
Co-operative Union of Malaysia and Midlands Co-operative Union of Malaysia
Portfolio Cooperative
National Malaysian Chamber of Malaysia

Selangor Should Follow Penang In Water Deal

Posted: 05 Jun 2011 02:13 PM PDT

By Tony Pua

Last Thursday, the Prime Minister, Najib Abdul Razak and the Penang Chief Minister, Lim Guan Eng signed a historic agreement to transfer the state's water assets held by Perbadanan Bekalan Air Pulau Pinang (PBA) to the federal agency, Pengurusan Aset Air Bhd (PAAB).

This transfer is in exchange for leaseback by PBA of the said assets at a low interest over a period of 45 years in addition to other terms such as the conversion of Penang's outstanding loan of RM655.24 million to the federal government into a grant as well as a special grant allocation of RM1.2 billion for the expansion project of Mengkuang Dam.

What is of particular importance, especially for other Pakatan-led states is the fact Najib praised the Penang "model" for the water restructuring exercise, and called on similar outcomes in other Pakatan states.

The statement is particularly applicable to the Selangor state which fractious and trouble water industry is resisting consolidation under the state government.

In Penang, while PBA is listed on Bursa Malaysia, the state government retains a majority 65% stake in the company, ensuring that all decisions relating to the provision of water services are in full control by the state government.

In fact, the Federal Government has under the above agreement ceded final say on water tariffs to the state government. The state government has also assured the public that water tariffs will not be increased under the restructuring exercise.

The Selangor government have sought to restructure the water industry to the same effect. The state seeks to consolidate the disparate water companies in the state, and retain control over water tariffs so that consumers in Selangor and KL will not be burdened by profiteering from these private water companies.

However, the Federal Government has failed to give any support to the efforts of the state government, and have instead back Puncak Niaga and Syabas to the hilt to ensure that the latter will continue to retain control over the water industry in Selangor post-restructuring.

In fact, the BN Government has gone to the extent of bailing out these water companies from their debt burden by taking over RM6.5 billion of these debts without binding these companies to any restructuring exercise. The result is, there will be no incentive for these companies to agree to any consolidation because the Federal Government has removed the only bargaining power in its hands.

The Minister for Energy, Water and Green Technology, Peter Chin should heed Najib's call for all Pakatan states water industry to model after Penang's.

He must use the power in his hands, as prescribed by the Water Services Industry Act 2006 as well as the fact that the water bonds will be held by the Federal Government to force these private self-interested water companies to concede their control over the water industry to the Selangor state government. Any disputes over valuation and terms can be resolved via an international arbitration panel of water, legal and financial experts.

The refusal of the Minister to do so will be a figurative slap on Najib's face for the water industry in Selangor will remain under the fragmented control 4 water companies, with the state government having little or no say to ensure that the interest of its citizens is fully protected.

TONY PUA is DAP National Publicity Secretary and MP for Petaling Jaya Utara

PM Should Answer To Ani Arope’s Revelation On EPU Being Responsible For Gas Subsidy Scandal

Posted: 05 Jun 2011 02:12 PM PDT

By Lim Guan Eng

Prime Minister Najib Tun Razak should answer former Tenaga Nasional Berhad (TNB) chief executive Ani Arope's revelation that the EPU is responsible for the gas subsidy scandal that costs Malaysians RM131.3 billion at end 2010.

Ani chose to resign from his executive chairman post rather than sign the imbalanced deals, which saw the first generation of IPPs created, such as YTL Power Services, Powertek and Malakoff during the Mahathir administration.

EPU forced Tenaga to buy electricity from an independent power producer (IPP), believed to be Genting Sanyen, at 14 sen per kilowatt hour (kWh) despite an existing offer of 12 sen/kWh then; other IPPs then were charging 16 sen/kWh.

Ani even dubbed EPU as the "Economic Plundering Unit" for rising electricity tariffs, saying the powerful agency forced the national power company to sign lopsided purchase deals nearly 20 years ago where Tenaga must purchase power it does not need.

This has resulted in Malaysia having the highest energy reserve margin in the world at 52.6% at 2010.

Up to end 2010, Petronas has extended about RM131.3 billion in gas subsidy to both the power and non-power sectors. If the gas prices remain unchanged (power sector at RM10.70 per MMBTU; non-power sector at RM15.35 per MMBTU), about RM27 billion in 2011 would have to be incurred.

Tenaga Nasional Bhd was allowed the 7% increase as Tenaga had to pay more for natural gas prices that has increased by RM3 per MMBTU, which would cut its gas subsidy costs to RM25.64 billion from RM27.22 billion.

Clearly, there is no justification for Putrajaya to hike electricity tariffs by 7% when a review of the original terms of IPPs would be more than sufficient to cut the subsidy bill.

Federation of Malaysian Manufacturers (FMM) has pointed out the Malaysian power sector had yet to translate its price advantage in fuel prices into more competitive electricity rates despite paying less for natural gas (RM13.70 per mmBtu) compared to Thailand (RM18.23), Singapore (RM43.32) and Indonesia (RM21.04).

The cost of electricity in Malaysia following this hike is nearly at par with Thailand... If we compare with Thailand's rate for low, medium and high voltage, Malaysia's electricity tariff for all these categories is higher.

The Prime Minister must answer why Malaysians must pay for the mistake or the imbalanced deals by EPU that is against national interest because it benefited the few IPPs at the expense of 27 million Malaysians.

LIM GUAN ENG is DAP Secretary-General And MP For Bagan

Kredit: www.malaysia-today.net

Isnin, 6 Jun 2011

Malaysia Today - Your Source of Independent News

Malaysia Today - Your Source of Independent News

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