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Economists see inflation soaring to six per cent

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Category: Oil & Gas
Published: Thursday, 05 June 2008 01:00
Posted by NST
Economists see inflation soaring to six per cent
By : Jeeva Arulampalam and Rupa Damodaran, The New Straits Times
June 5, 2008
 
 
KUALA LUMPUR: Economists said inflation could double to six per cent this year after the government decided to increase fuel prices and allow electricity tariff to rise.

They also think that economic growth could fall below the government’s official target of between five per cent and six per cent.

Bank Islam Malaysia senior economist Azrul Azwar Ahmad Tajudin said consumer spending would be hit, resulting in a cutback on non-essentials.

“People will not be spending on designer labels and expensive restaurants or will think twice about buying new cars and properties,??? he said.

Thus, businesses that depend on consumer spending such as retail, tourism, travel and automotive are likely to be badly affected.

“Not only are there threats of lower revenue for businesses that are directly affected, the risk of slower economic growth could pull the overall (stock) market down,??? said Azr ul.

CIMB Investment Bank chief economist Lee Heng Guie expects the impact to be felt in the second half of the year.

“The economy will go through a phase of adjustment,??? he said.

AmInvestment Bank economist M. Manokaran said the price increases came at a time when food prices had hit an all-time high.

On the cash payments of RM625 for cars of 2000cc and below, they said an average of RM52 per month was insufficient to weather the steep 41 per cent rise in petrol price.

For instance, a 1600cc car which consumes 250 litres of petrol monthly would have to pay RM675 now, compared with RM480 previously.

Manokaran said the central bank would have to review the current overnight policy rate, which determined banks’ lending rates.

“Bank Negara can’t hold at 3.5 per cent and we could see an adjustment of 25 to 50 basis point in early third quarter (July or August),??? he said.

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Yes, let us get angry, but about the right things

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Category: Oil & Gas
Published: Thursday, 05 June 2008 01:00
Posted by Raja Petra Kamarudin
Yes, let us get angry, but about the right things
By Raja Petra Kamarudin
Thursday, 05 June 2008

Petronas is too important to the nation. Petronas is the backbone of the Malaysian economy. Without Petronas this country would be dead. Should something that important be under the control of just one man where even Parliament has no say over it?

NO HOLDS BARRED - Raja Petra Kamarudin

We should not worry so much about the petrol price increase. Even if Pakatan Rakyat had formed the federal government and even if Anwar Ibrahim had become the prime minister we would have still suffered this price increase. So is it fair to target Abdullah Ahmad Badawi singly for this petrol price increase?

The blame for the increase in the price of petrol should not be placed on the shoulders of one man and it should be seen within a bigger picture rather than in isolation. Could Abdullah Ahmad Badawi have done anything about it even if he wanted to? Or is Abdullah Ahmad Badawi a victim of circumstances, who anyone who was heading the government today would also have to endure?

It is very easy to blame someone else for our problems. Who, after all, would want to admit that he or she is the problem? And the most unpopular move a government can make is a move that affects your pocket.

Do anything. Kill detainees in the police lockup. Detain political opponents and dissidents without trial on the lame excuse that they are threats to national security. Spend billions of the nation’s money on white elephants and monumental projects. Siphon out billions of Ringgit in ‘commissions’ from government projects and stash the money in numbered Swiss bank accounts. Kill of all the Rainforests. Mess up the environment. In short, do whatever you want. Just don’t put any strain on my pocket. The instant you touch my pocket, then, and only then, will I rise up in anger. That is the mentality of the Malaysian Rakyat.

We should not get upset with the increase in the price of petrol. What we should get upset about is the fact that over 34 years since 1974, Malaysia has earned an estimated RM2 trillion in oil revenue. I say ‘estimated’ because that is the only basis we can use in figuring out what the actual amount is. Petronas’ accounts are not published and are not tabled before Parliament. According to the Petroleum Development Act 1974, Petronas need not make its accounts public. Petronas need not even report to anyone, not even to Parliament. Petronas reports to just one man, the Prime Minister of Malaysia.

Petronas is too important to the nation. Petronas is the backbone of the Malaysian economy. Without Petronas this country would be dead. Should something that important be under the control of just one man where even Parliament has no say over it? That is what we should be angry about. We should not be angry that the price of petrol has increased. It is not Abdullah Ahmad Badawi’s fault.

Okay, if we want to still be angry with Abdullah Ahmad Badawi, then let us be angry about the fact that just before the 8 March 2008 general election the government promised the voters that the price of petrol would not be increased. Then, even before 100 days after the general election, they go and increase it. They lied to us. They led us to believe that if we voted for them the price of petrol would not be increased. Then, after 50% or so of Malaysians voted for them, they go and increase the price of petrol. If they had been honest and had said that as soon as the general election is over they will increase the price of petrol, then 50% of Malaysians would not have voted for them. If they had been honest and had said that as soon as the general election is over they will increase the price of petrol, then more than five states would have fallen to Pakatan Rakyat and Barisan Nasional would no longer be the federal government.

Yes, that we can be angry about, if we want to be angry about something. Be angry that they lied to us. Be angry that they got 50% of Malaysians to vote for them under false pretences. But we should not be angry with Abdullah Ahmad Badawi for increasing the price of petrol when he really had no choice in the matter.

I am not angry about the increase in the price of petrol when Abdullah Ahmad Badawi could not avoid increasing it. I am angry that he was forced to increase it. Why was he forced to increase it? And what happened to the estimated RM2 trillion that Petronas has earned over 34 years since 1974? And why are the accounts not made public or tabled before Parliament? Was not Petronas set up through an Act of Parliament via the Petroleum Development Act 1974? Therefore, should not Parliament have the power and authority to demand that Petronas table its accounts before Parliament? Why are the accounts secret? And why should Petronas report to only one man?

Petronas should be turned into a pubic listed company. Petronas should be called Petroleum Malaysia Berhad or Petromas Bhd or PMB and it should be listed on the Kuala Lumpur Stock Exchange and its accounts should be made public like all other public companies. Then PMB must hold annual general meetings and all shareholders who hold even just one share should be allowed to attend these AGMs and be allowed to ask questions. And the Directors of PMB should be both nominees of the majority shareholders (meaning the government) plus representatives of the minority shareholders (meaning you and me who hold just one share or one lot of shares). And the Directors of PMB (in particular those representing the minority shareholders) should be appointed at the AGMs. And if the shareholders are not happy with the Directors, then the shareholders can remove them via an EGM if the minimum requirements for an EGM are met.

That is what should be done, but is not done, and that is what we should be angry about. We should not be angry about the increase in the price of petrol when the increase is unavoidable and Abdullah Ahmad Badawi has really no other alternative. And we should also be angry about the fact that Abdullah Ahmad Badawi had no alternative but to increase the price of petrol. And we must not forget to also be angry about the matter of the estimated RM2 trillion that Petronas has earned over 34 years since 1974. And we must certainly be angry about the fact that we do not really know how much money Petronas has earned over 34 years since 1974 or what happened to the money. And we must remember to be angry about the fact that Petronas need not table its accounts or report to Parliament and about the fact that only one man, the Prime Minister, knows what is going on in Petronas and how much it has really earned and where all that money has gone to.

Oh, and since we are in the mood of getting angry, let us also get angry about the estimated RM30 billion that Terengganu has earned, which we do not know where the money has gone, and about the estimated RM30 billion that Sabah and Sarawak have also earned, which we also do not know where the money has gone. And let us also get angry about the estimated RM1 trillion that Petronas paid the government by way of corporate tax, which we also do not know where the money has gone. Furthermore, let us also get angry about the estimated RM900 billion or so that Petronas did not pay Terengganu, Sabah, Sarawak, or the federal government by way of corporate tax, which we also do not know where the money has gone.

Yes, let us get angry about all that. But let us not get angry about the increase in the price of petrol because this is just the end result of all the other things we should really be angry about but somehow are not. And let us not blame Abdullah Ahmad Badawi for increasing the price of petrol. It is not Abdullah Ahmad Badawi’s fault. He has no alternative but to increase the price of petrol. Instead, we should be angry with ourselves. We kept quiet over 34 years since 1974. We did not care what they did with Petronas over 34 years since 1974. We did not bother to ask what they are doing with the estimated RM2 trillion of Petronas’ money. We did not demand that the public or Parliament get to peep into Petronas’ accounts. We just continued voting for Barisan Nasional over 34 years since 1974 without a care in the world. We should be angry with ourselves for the increase in the price of petrol, not with Abdullah Ahmad Badawi.

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Help us, fishing boat owners tells govt

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Category: Marginalized Malaysians
Published: Thursday, 26 June 2008 17:00
Posted by New Sabah Times
APPEALING FOR THEIR SURVIVAL… Simon (seated third from right) posing together with some of his committee members and ordinary members, during the news conference held at the SAFMA jetty yesterday

KOTA KINABALU: The KK Fishing Boats’ Owners Association (KKFBOA) has called on both the Federal and State governments to give special attention to the plights of its members, in the wake of escalating inflation triggered by the latest round of fuel price increase.

Speaking to reporters at a news conference here yesterday, KKFBA Chairman Simon Hong stressed that such was only right in view of the significant role played by the industry, as one of the main providers of food item to the general population.

He especially urged the authorities concerned to expedite the implementation of the various fuel rebates announced by the government on June 5, including payment of RM200 monthly to every owner and crew of Malaysian-owned vessels registered with the Fisheries Department.

It also wants speedy payment of incentives to vessel owners at the rate of 10sen per kg of fish landed by approved fishing vessels at fish landing centres in the country.

He lamented that since the fuel price hike, its members’ operations had been severely affected as their monthly expenses had gone up significantly.

“Besides having to fork out additional money to the sum of RM10,000 and more every month, now just to cover for the difference in our fuel consumption, prices of almost every thing too has gone up, from rice for our crew members to spare parts for the fishing boats and fishing appliances like fishing net. The prices have gone up between 30 to 40 per cent,??? he elaborated.

He also highlighted that slow supply of subsidised fuel by Petronas too had adversely affected their operations, to the extent that they had to reduce their fishing trips from four times per month to three times now.

“All these had significantly affected our incomes and profit margins,??? he said.

Besides this, he also claimed that their monthly quota for the subsidised fuel had been reduced from 30,000 litres in 2006 to 20,000 litres now.

A fishing trawler with a 500 horse power engine requires between 28,000 to 30,000 litres of fuel per month.

“In fact the subsidised fuel quota for the whole of Sabah had been reduced by 10 per cent since beginning of this month,??? he disclosed.

Hong thus urged the authorities concerned to start restricting fishing trawlers from outside Kota Kinabalu to come in, so as not to usurp up the limited subsidised fuel reserved for the local fishermen.

He noted that the number of fishing trawlers in Kota Kinabalu had increased from 140 to 160 in the last one year.

Furthermore, the existing SAFMA jetty is also too small and has become overcrowded nowadays.

“It can only allow for three trawlers to unload the catch in a day. The rest will have to unload their catch by hoping from one trawler to another trawler, which is rather laborious,??? he noted.

He thus hoped the State government could consider upgrading the existing jetty.

Apart from this, he also urged the authorities concerned to simplify and expedite the annual renewal of the “eNelayan D’kad??? for them to enjoy the subsidised fuel, which he disclosed took between 2 weeks and one month to process.



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The dire plight of the nation's urban poor

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Category: Marginalized Malaysians
Published: Friday, 27 June 2008 17:00
Posted by Johan Jaafar, NST
By JOHAN JAAFFAR, Columnist, New Straits Times


AZIZ, Ramasamy and Mei Ling have something in common. They are part of the urban poor. They are the worst affected by the recent fuel hike and the rising price of foodstuff. Aziz lives in Kampung Medan near Petaling Jaya. He came to Selangor 30 years ago. For more than 15 years, he was a squatter in one of the most notorious slums near Jalan Klang Lama. He got married, had six children, and when the area was developed, he was offered a rumah murah (low-cost house). He has to pay RM200 a month for the house.

Ask him what he does for a living and he will tell you he juggles many jobs at any one time. Three times a week, he works as a gardener at the house of a local political chieftain. In the evening, he washes dishes at a stall. At night, he cycles around Petaling Jaya with a plastic bag, rummaging through dustbins and containers for cans, bottles and newspapers. He comes back very late, normally exhausted, after a 16-hour day. His wife cannot help much to supplement his meagre income for she suffers from kidney complications. Occasionally, she makes kuih for sale.

Ramasamy drives a lorry but doesn't own one. He lives in Kampung Gandhi, a stone's throw away from the hustle and bustle of Sunway City. Ramasamy will drive the three-tonne lorry to a specified place every morning. He is not alone. At any one time there are at least 10 lorries vying for attention. These are lorries for hire. Normally, people will look them up when they move house. Ramasamy is lucky to get three trips on a weekday for short distances. On Saturdays and Sundays, he has better luck. But there are times he will just be playing cards with his buddies under the shade.

He gets at most RM15 a trip and, if he is lucky, he gets a little tip. Tips are hard to come by these days. His wife works as a helper at two apartments. She works at a restaurant nearby on weekends. In all, she is lucky to bring back RM600 a month.

Mei Ling pushes her cart every morning to the market, where she tries to sell her wares for at least a few hours. But Dewan Bandaraya Kuala Lumpur's enforcement officers are usually there to make sure illegal hawkers like her are not operating. Mei Ling will have to wait for them to leave before she opens the plastic wrapping which serves as container and mat for her cheap products from China -- torch lights, remote controls, batteries, utensils, you name it. Mei Ling is lucky to make RM50 in a few hours, profit not included. More often than not, she comes back empty handed.

Mei Ling works in the evening as a cleaner at a pub. She goes home very late at night. Her three children would be asleep by then. Her mother can keep an eye on the children while she is at work. She wakes up at 5.30am to prepare them for school. Mei Ling is a single mother trying to make ends meet in a city that is becoming more expensive by the day. She has only one purpose in life now -- to make sure her children get the best education. It will be their only means to escape the yoke of poverty that has bedevilled Mei Ling. She lives in a decrepit house in one of the 100 squatter settlements still in existence in Wilayah Persekutuan.

Aziz, Ramasamy and Mei Ling hardly earn RM1,500 a month, a marker for urban poverty today. They are not even aware of such a thing as the Poverty Line Index. Why should they care about the Household Expenditure Survey that is the basis of that measurement? The truth is, we have to look seriously at these people for they are the worst hit when prices escalate. They are sadly either part of the statistics in an ongoing debate on poverty or merely numbers to justify a policy.

Urban poverty is a multi-dimensional phenomenon, no question about that. We are talking about deprivation -- limited access to housing, employment, income, services and, more importantly, opportunities. We have been looking at a money-based poverty definition for far too long so much so that we have failed to look at the bigger picture. We have quick-fix solutions while the causes and prevailing culture leading to its existence are largely ignored.

Similarly, we are addressing urban poverty the way we treated poverty in the rural areas. These are of two different characteristics. The approach to eradicate poverty in the rural areas could fail miserably when applied to an urban situation. There are other dangers for those who feel deprived in the urban setting. They are easily agitated and angered by the realities around them. That would translate into unhappiness which will register loudly in elections.

More than 62 per cent of our population are city dwellers. True, we have succeeded in reducing the incidence of poverty in the country. And yes, we can be proud to be the poster boy of poverty eradication. But again, markers move, indicators shift and measurements are seldom constant. It takes a hike in the fuel price like the recent one and what we have achieved these many years will simply go down the drain.

But one thing is certain, poverty transcends race. And poverty involving people like Aziz, Ramasamy and Mei Ling are real and they are part of us. These are largely unskilled workers or come from single female-headed households. They are the unscripted players in a country that has embarked on rapid development and which has been blessed with incredible achievements. They are at the periphery of economic success and wealth creation.

Someone mentioned about urban poverty as being unfathomable. I couldn't agree more. To some, their existence is nothing more than mere distractions to our success stories. We have no choice but to look at them with a new perspective and seriousness. Remember, the prime minister once reminded us, we are not to allow the future generation to inherit poverty. Now is the time to act. We have to solve one of the greatest tragedies of nation-building.


     
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In search of needy folk

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Category: Marginalized Malaysians
Published: Monday, 23 June 2008 01:00
Posted by The Star
By SIRA HABIBU, The Star
Monday June 23, 2008


ALOR STAR: Information on poor Malaysians will be listed in the e-kasih database by year-end.

Deputy Minister in the Prime Minister’s Department Datuk Mohd Johari Baharum said the database could be used to ensure fair distribution of assistance and check overlapping of aid programmes.

The Implementation and Coordination Unit of the Prime Minister’s Department is carrying out a study on the poor in urban and rural areas.

“We also want to make sure no needy people are left out from aid programmes.

“Quite a number of poor people are left out because they have not fulfilled certain conditions,??? said Mohd Johari, who is also Kubang Pasu MP, after visiting four poor households in Mukim Sungai Laka in the Bukit Kayu Hitam constituency on Saturday.

He said it was time to review the criteria for aid eligibility and relax the rules to help the needy.

Johari said the needy folks he visited on Saturday were not receiving any form of welfare aid although they were living in pathetic conditions with no water and electricity.

“Even in Kubang Pasu, the constituency of former prime minister Tun Dr Mahathir Mohamad, we find that aid did not reach deserving individuals because those given the responsibility to carry out the survey did not do their job well.

“I came across a house that had no walls. There are houses where occupants run out when it rains because they fear the house will collapse,??? he said.

He said an elderly man who he visited in Kampung Masjid on Saturday lived alone in a run-down house that had no electricity and water supply.

“The man is more than 60, but he did not qualify for aid because he does not have any dependents.

“He is too frail to work, and is not getting any aid,??? he said.
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