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Malaysia Today - Your Source of Independent News


EIU: Inflation to follow subsidy cuts

Posted: 02 Jun 2011 06:28 PM PDT

The London-based intelligence unit foresees inflation rising 3.3% this year following the government subsidy cuts.

(Free Malaysia Today) - The Economic Intelligence Unit's (EIU) latest report on Malaysia has confirmed that consumer price inflation will closely follow the government's move to slash subsidies.

The London-based research arm of the Economist weekly anticipates inflation to accelerate to an average rate of 3.3% this year and 3.5% between 2012 and 2015.

Earlier this week, Prime Minster Najib Tun Razak announced a power tariff hike of 7.1% as the country's subsidy bill doubled to nearly RM20.83 billion this year. While fuel subsidies remain untouched for now, analysts are certain that a price increase is on the cards.

The EIU attributed the impending inflation mainly to higher global prices for crude oil and non-oil commodities but added that government efforts to rationalise the extensive subsidy scheme was a strong contributor.

"Another source of inflation will be the new Goods and Services Tax (GST) which the government will attempt to introduce early in the forecast period," the report said.

However, it added that these factors would be balanced out by equally strong disinflationary influences including the removal of trade barriers and greater regional economic integration.

"As a country that is heavily dependent on international trade, Malaysia will not be able to escape the effects of growing competition and import penetration in its domestic market," the report noted.

"Another factor that will help to keep inflation in check will be the forecast appreciation of the ringgit against the US dollar in 2011-2015. Since most of the country's imports and exports are denominated in US dollars, imports will consequently become cheaper."

READ MORE HERE

 

MIC man lauds ‘colour-blind’ DAP, PAS

Posted: 02 Jun 2011 05:59 PM PDT

S Vell Paari also takes a swipe at those who criticise the two parties, saying multiracial politics is the way forward.

(Free Malaysia Today) - The move by several opposition parties to field multiracial candidates in the next general election received support from an unlikely source – a MIC leader.

Commenting on the DAP, MIC publicity and communication chief S Vell Paari said the opposition party appointed a Malay and Indian as deputy chief ministers despite being accused of being a Chinese chauvinist outfit.

"Look at their success in Sarawak. It's their multiracial approach that helped them in the state election," he told FMT.

Vell Paari was commenting on MCA president Dr Chua Soi Lek's statement that Malaysians should stop identifying themselves to the racial group they belong to and accept the multi-racial reality of the country.

The MIC leader also said that it was not fair to criticise DAP for wanting to field more Malay candidates in the next general election.

On May 22, Umno vice-president Ahmad Zahid Hamidi said that DAP planned to field more Malay candidates, especially in Negri Sembilan, Malacca and Perak.

Ahmad Zahid, who is also defence minister, said this was to accommodate DAP's move to install their own party member as the mentri besar of those states.

Following this, Deputy Prime Minister Muhyiddin Yassin called upon the Malays to be wary of DAP's plan, claiming that it was a ploy to shore up Malay support.

'The youth are different'

However, Vell Paari said this was not the first time DAP would be fielding Malay candidates.

"Besides, is it a crime for DAP to field more Malay candidates? Despite being labelled as a chauvinist party, a lot of Malays are warming up to DAP and its ideology. So where does the problem lie?" he asked.

The MIC leader also commended PAS for opening its doors to more non-Muslims by setting up a non-Muslim wing.

"Even the so-called extremist party has embraced its non-Muslims brothers knowing multi-racialim is the way forward in Malaysia," he said.

READ MORE HERE

 

‘DAP failed to deliver on Sarawak 416 promise’

Posted: 02 Jun 2011 02:48 PM PDT

DAP has reached its peaked in Sarawak and now must steamroll Sabah to stay relevant, says SAPP.

Chances of a unified opposition in Sabah are rapidly receding following unrelenting attacks by the Sabah Progressive Party (SAPP) over a faux pas last weekend by DAP supremo Lim Kit Siang.

Lim had told SAPP, during a Kaamatan dinner thanksgiving celebration here last Friday, it needed to join the Pakatan Rakyat opposition coalition to have any hope of toppling the Barisan Nasional (BN) government.

His innocuous comment during his speech sparked a vociferous backlash from SAPP president Yong Teck Lee and several of party leaders that has yet to abate despite Lim's apology for sounding harsh and arrogant.

Yesterday, SAPP secretary-general, Richard Yong, went on a different tack, accusing DAP of failing to deliver on its promise of change following the Sarawak state election on April 16.

He said that what had happened instead was that it had landed the Chinese community there in the opposition while the Bumiputeras were represented by other parties and remained in government.

"This is the 'two-party system' championed by DAP, with the Chinese in the opposition and the Bumiputeras in the government.

"This is the DAP '416′ promise of change of toppling Taib Mahmud (Sarawak Chief Minister) on April 16.

"Instead, '416′ turned out to be Taib's victory because Taib was sworn in on the evening of '416′.

"This is why SAPP urged DAP greenhorns in Sabah not to be over elated by their so-called success in Sarawak.

"Sarawak '416′ is neither a success for the opposition nor for Sarawak nor for the Chinese community," he said.

He said this while presenting SAPP's analysis on the implications of the Sarawak election on Sabah.

SAPP aims for autonomy

Yong said that SAPP also disagreed with Lim's view that "to change Sabah, we must have change in Malaysia".

"In fact, to change Malaysia, we must have change in Sabah. This is because if the national opposition cannot win in Sabah and Sarawak, then there is no change in Malaysia.

"SAPP aims to restore autonomy to Sabah by having a change of government in Sabah and in Putrajaya. It is not sufficient to have a mere changing of urban representatives like what happened in the recent Sarawak election," he said.

For Pakatan Rakyat to achieve its target of 15 MPs from Sabah and Sarawak, the combined Sabah opposition (Pakatan plus SAPP) has to garner 10 to 12 out of the 25 MP seats in Sabah.

"To achieve this target, SAPP respects the wishes of the people that the opposition works together.

"SAPP has been playing its part; our leaders have met with PKR and DAP leaders at various levels from top to bottom, attending Pakatan functions and building mutual confidence," he said.

Yong also explained that the purpose of sharing the party's analysis on the Sarawak state election with the public was in view of the "super confidence" of DAP that only they can bring change to Sabah.

"We wish to share with the public our party analysis of the DAP performance in the April Sarawak state election and its implications on the coming general election," he said.

SAPP had sent five teams to lend moral support to Pakatan and to learn about the Sarawak elections, he added.

READ MORE HERE

 

Targeting RM800b oil 'field'

Posted: 02 Jun 2011 11:55 AM PDT

By Eileen Ng, NST

KUALA LUMPUR: A one-stop centre to coordinate and promote the country's oil field services and equipment (OFSE) industry, to be known as Malaysia Petroleum Resource Corporation, will be set up, said Deputy Prime Minister Tan Sri Muhyiddin Yassin.

This government body will look into creating an attractive business environment for industry players and investors.

"The government is in the midst of establishing the corporation to attract multinational companies by ensuring administrative ease as well as to promote Malaysian OFSE industry to overseas companies and investors," he said in his speech at the 13th Asian oil, gas and petrochemical engineering exhibition (OGA 2011) yesterday.

Touted as the largest oil and gas show in the region, the event attracted some 1,500 oil and gas companies from over 50 countries, with products worth more than RM100 billion on display.

Saying that the global OFSE market stood at RM800 billion and had undergone an annual growth rate of 25 per cent in recent years, Muhyiddin said the Asian market for oil field services alone had grown by 20 per cent per year over the past decade, primarily driven by the shift towards more technically challenging fields and increases in the price of crude oil.

Currently, there were gaps in the domestic OFSE industry, with Malaysian companies lacking capabilities and experience, limiting their ability to gain a strong share in the regional market, he said.

Muhyiddin said Malaysia's aspiration was to attract 10 to 20 major international companies to bring 10 per cent of their OFSE business operations to Malaysia.

"This could translate to around 40 per cent of their regional activities and would mean positioning Malaysia as a cost-competitive base for engineering, procurement and construction as well as a strategic base for installation activities in the Asia-Pacific region.

"As Malaysia is undertaking aggressive efforts and developing innovative solutions to drive the reserve growth and get more from existing fields, advanced technology and capability is crucial for us.

"International companies have the cutting edge technology and expertise to assist Malaysia in the deep water sector and exploration services. Our local oil and gas players can also grow their capabilities by working together with these international companies."

He said Malaysia was targeting five per cent annual growth for the energy sector from last year until 2020. "This target translates into an increase of RM131.4 billion in the period from 2010 to 2020.

"There are significant number of business opportunities in the oil, gas and energy sector. Malaysia's offshore producing fields are more mature than those of our Southeast Asian neighbours.

"There will be tremendous commercial opportunities for maintenance and replacement of assets in addition to development of new fields, which will continue to drive growth in this key sector."

Muhyiddin added that another growing business opportunity was the regional midstream logistics market for oil and oil product storage, with crude oil consumption expected to grow by 420,000 barrels per day annually from 2010 to 2015.

Malaysia, he said, was well-placed to complement Singapore and collectively operate a hub similar to Amsterdam-Rotterdam-Antwerp.

"This hub can complement each other in areas of refining capacity, independent storage and blending capacity as well as access to markets."


Where is Sabah’s oil money going?

Posted: 02 Jun 2011 11:51 AM PDT

By Queville To, Free Malaysia Today

KOTA KINABALU: Sabah, as major gas producing state in the country, should not be included in the electricity tariff hike or in any fuel susbidy cuts.

Sabah Progressive Party (SAPP) women's wing chief Melanie Chia said yesterday that there "is no reason to revise electricity tariff in Sabah, more so when Sabah is a major producer of gas in the country".

Chia, who is the state assembly representative for Luyang, questioned the logic behind the increase, citing that being a net exporter of crude oil, the government was supposed to be making a huge profit each time there is an increase in the oil prices in the global market.

"The government has repeatedly said that they need to review the subsidies because of the increase in the prices of oil and gas.

"But it has been reported that every time the price of oil and gas increased by US$1, there is an additional income of RM500 million.

"The US$1 increase will increase the subsidy by RM350 million, there is still a net excess of RM150 million.

"So, where has this excess gone to?

"By this calculation, the recent increases in the prices of oil and gas should have brought about a win-win situation to the government and the people of Malaysia.

"If the government has to cry foul each time the price increases, we need to ask the government where has the excess due to the higher prices of our natural resources gone to?

"Instead of a win-win accruing from our natural endowment, we are burdened with the eventuality of higher cost of living.

"Where is the logic?" she asked.

Why a refinery in Johor?

SAPP is also demanding accountability and transparency in the dealings of Petronas since Sabah is a major producer of oil and gas in the country, but is not represented in the advisory board of national oil company.

"Before our natural endowment in oil and gas is depleted, the Malaysians living in Sabah need to be assured that Sabah will benefit from the exploitation of the oil and gas here.

READ MORE HERE.

Is Pairin winding down his political career?

Posted: 02 Jun 2011 11:49 AM PDT

By Luke Rintod, Free Malaysia Today

KOTA KINABALU: Speculations are rife that a subtle power shift may be taking place in Parti Bersatu Sabah.

Indication of change came to light with rumours that Kota Marudu parliamentarian Maximum Ongkili was shifting his political base to his hometown in Tambunan where his family is building a big house on an ancestral land, just a stone's throw from his uncle Joseph Pairin Kitingan's home.

Pairin is currently Tambunan assemblyman and also Keningau MP.

Pairin, 71, is said to be contemplating winding down his public roles, which have reportedly been quite taxing for him. He's had to deal with complaints about his productivity and efficiency.

The aging Pairin has been an assemblyman for Tambunan for the past 35 years, uninterrupted since 1976 when he was still with Berjaya.

He also is the 'Huguan Siou' or paramount leader of the Kadazandusun, a Deputy Chief Minister-cum-state Minister of Rural Development, president of Parti Bersatu Sabah (PBS), president of KDCA (Kadazandusun Cultural Association) and sits in many committees, including the Asean Eminent Persons Committee.

Maximus, 58, being a senior deputy president of PBS and also KDCA, seems the obvious choice to takeover some of Pairin's
roles.

But observers say there is discontent with Maximus, both within PBS circles and in Kota Marudu, lending credence to rumours that he might be moving to Tambunan or Keningau in the coming general election.

Maximus, who is a federal minister, has held Kota Marudu since 1985 when it was known as Bandau.

His fourth term as MP, has seen a steady fall in his popularity which has been translated into less votes in Dusun majority areas.

Poor track record

In the 1995 general election, when pitted against another uncle, Dr Jeffrey Kitingan, then of Barisan Nasional, Maximus won by garnering 64% of the total votes cast.

In 1999, while PBS was still in opposition, Maximus defeated yet another BN candidate, local boy Maijol Mahap, but garnered only 51% of the total votes.

In 2004 general election, Maximus, who by then was in the ruling BN, retained his seat, defeating his closest rival, the relatively unknown Anthony Mandiau, by garnering 56% of the votes.

In the 2008 general election, he once more defeated Mandiau but his previous popular votes was slashed by 2%.

Maximus has been in the federal cabinet since 2004, but his vast constituency of Kota Marudu is still lagging in infrastructures and economic opportunities.

In many places the roads are in a deplorable condition.

READ MORE HERE.

PAS — opposition power house or federal ruling party?

Posted: 02 Jun 2011 11:47 AM PDT

By Sheridan Mahavera, The Malaysian Insider

KUALA LUMPUR, June 3 — There are two competing but telling narratives of PAS, the Islamist and second largest party in Malaysia post-2008.

In Kedah, there are grassroots members and Muslims who voted for them who complain that there are more karaoke joints and pubs that have sprouted up in the past three years where the Islamist party has been in power.

Also in Kedah and every other state in the peninsula, there are significant numbers of non-Muslim supporters who compare PAS spiritual leader Datuk Nik Abdul Aziz Nik Mat to Mahatma Gandhi, the world symbol of all non-violent revolutions.

Both of these groups of people helped give the party its historic 23 parliamentary seats and its two state governments. The party also scored a bonus by getting the post of mentri besar in three of the five states Pakatan Rakyat won.

Yet these sentiments also pose a dilemma. If PAS decides to please its traditional supporters and go back to the PAS of old, with its focus on anti-vice laws, moral policing and its version of an "Islamic state" it alienates its new non-Muslim and moderate Muslim support base.

But if it holds off on realising hudud law (which calls for cutting off the hands of thieves and stoning adulterers), some its most hardcore supporters feel they've been betrayed. 

And then there is the possibility of co-operating with arch-nemesis Umno. Though it has been fervently refuted by its leadership, the matter still crops up and haunts the imagination of many members.

So when the party meets from today for its 57th party muktamar (assembly), it will have to decide which narrative or combination between the two will decide the party's direction moving into the 13th general election.

Its Pakatan Rakyat (PR) partners the DAP and PKR are keenly watching this muktamar. Not just because of the elections taking place but because the party's leadership will have to chart PAS's direction going into the 13th general election which they expect to be later this year.

What comes out of the muktamar will determine if PAS can live up to its billing as the "Umno of PR" who will gain the necessary Muslim support to propel PR into federal power.

Movement or ruling party?

PAS members, says one Kedah party activist, can be roughly divided into two types. And no, it's not "Erdogan"/professionals versus ulama/conservatives.

One type believes that PAS is, first and foremost, an Islamic movement. Its main purpose is to spread the religion and pressure the government to adopt so-called "Islamic laws" such as hudud and qisas and to outlaw unIslamic practices such as gambling.

"The idea is that PAS should just preach Islam to the public, regardless as to whether people listen or not," says Mohd Monier Mat Din, a member from Padang Serai.

READ MORE HERE.

Malaysia plays hardball over asylum swap deal with Australia

Posted: 02 Jun 2011 11:46 AM PDT

(The Malaysian Insider) - KUALA LUMPUR, June 3 — Malaysia is pushing hard over the proposed refugee swap agreement with Australia and has removed all references to human rights in the deal.

According to the draft agreement obtained by Australian broadcaster ABC TV's Lateline, Malaysia wants to decide which asylum seekers it accepts and for Australia to cover almost all costs of the refugee exchange.

"Where the Transferee do (sic) not agree to return to their country of origin, voluntarily forced returns may be necessary. In this event, the Government of Australia will be fully responsible to accept and ensure voluntarily forced returns," stated the document, as quoted by ABC.

ABC said Malaysia has insisted on sending 4,000 refugees to Australia, regardless of how many asylum seekers it accepted in return.

Malaysia also does not want the United Nations Refugee Convention, which it is not a signatory of, to cover its side of the agreement.

"The treatment of the Transferee while in Malaysia will be in accordance with the Malaysian laws, rules, regulations and national policies," said the document.

The United Nations High Commissioner for Refugees (UNHCR) has expressed concerns with Malaysia's amendments to the agreement that were made last Monday.

"What the document shows is that there is a real reluctance by Malaysia to commit to a clear inclusion of human rights standards and guarantees," Australia's Refugee and Immigration Legal Centre co-ordinator David Manne was quoted as saying.

"For example, in the document refugees are referred to as illegal immigrants. There's no reference to the word asylum seeker. There's certainly no reference to human rights," he said.

An internal UNHCR document has also suggested that Australia had a position on sending children to Malaysia, according to ABC.

"AUL (Australia) doesn't want to provide exceptions for UAMS (unaccompanied minors) and vulnerable individuals for fear if (sic) this being a pull factor exploited by smugglers," the document said.


READ MORE HERE.

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