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Showing posts with label On the Beat. Show all posts
Showing posts with label On the Beat. Show all posts

Tuesday 23 August 2022

Forces face farce, the controversy surrounding the purchase of six littoral combat ships (LCS)

 

Under construction: One of the controversial littoral combat ships at the Boustead Naval Shipyard in Lumut.

 

THE current controversy surrounding the purchase of six littoral combat ships (LCS), which is burning RM11bil of taxpayers’ hard-earned money, isn’t the first discrepancy and alleged corruption, incompetence and mismanagement involving the Defence Ministry (Mindef).

In the name of national interest, details relating to procurement are often shrouded in secrecy, with information branded classified.

Last week, the government announced that it plans to set up a Royal Commission of Inquiry to investigate the LCS issue, which has now been presented to the Cabinet.

It’s certainly a good follow-up to the detailed findings by the Public Accounts Committee (PAC) and the de-classification of a report which highlighted the poor financial management and cash flow issues ailing Boustead Naval Shipyard (BNS), the company embroiled in the LCS fiasco.

Hopefully, the setting up of the RCI will expose Mindef’s shortcomings and reveal it to the public while establishing a proper procurement process.

The RCI shouldn’t be another panel with a glorified name which delays its deliberation and has its report collecting dust at the end of it.

The Malaysian Anti-Corruption Commission (MACC) has already stepped in, and Malaysians want to see the case expedited with the Attorney General hauling up the culprits responsible for the inflated costs.

This could include powerful political personalities who directed those implicated in the PAC report.

The sad reality is that the LCS issue is yet another shameful blot on Mindef’s long and never-ending series of scandals over the last 40 years.

Before we pore over its “chequered” history of the past decades, fresh in my mind is the 2019 news reports of the non-delivery of six helicopters worth RM300mil that were ordered in 2015.

Bernama had reported that a Mindef representative filed a complaint at MACC, saying the McDonnell Douglas MD530G lightweight combat helicopters were to be handed to Malaysia in 2017 and 2018.

It reported, quoting sources, that approval for the November 2015 purchase of the helicopters was not done according to procedures, with the government’s interests not properly protected.

The source told Bernama that the Malaysian government had paid up RM112.65mil for the acquisition, or 35% of the total cost.

We haven’t heard from MACC since 2019, when it said it was investigating 14 controversial land swap deals involving Mindef.

The list of dodgy procurement deals is long. It includes the 1981 purchase of 26 units of the British Alvis Scorpion tanks.

According to Consumer Association of Penang president, Mohideen Abdul Kader, the tank’s recommended Rolls-Royce gasoline engines were replaced with slower diesel ones, and the guns with heavier ones.

He said the modifications made the tanks heavier and slower, a sitting duck in any military encounter, and eventually in 2018, they were scrapped.

“The 186 SIBMAS armoured personnel carriers purchased by Malaysia in 1983 were found to lack combat effectiveness.

“Malaysia bought 18 Russian Sukhoi Su-30MKM Air Superiority Fighters, taking delivery of three in 2007 and the rest in 2009.

He said the deal, worth RM3.2bil, was made through a Russian state company whose local agent was paid 12% of the purchase price, amounting to RM380mil.

Mohideen said by 2018, most of them had become unserviceable, with only four of the 18 fighter jets still able to fly. The rest were under repair and the ministry eventually fired the contractor, apparently for failing to maintain the jets in airworthy condition.

“In 2002, the ministry negotiated through a Kuala Lumpur-based local company Perimekar Sdn Bhd to buy two Scorpene submarines and a used Agosta submarine produced by the French government at the price of RM4.5bil.”

Mohideen said a whopping commission of RM510mil was paid, 11% of the purchase price of the submarines.

He also claimed that in 2004, the PSC-Naval Dockyard was contracted to deliver six patrol boats to the Malaysian Navy, but only two were delivered in 2006, neither of which were fully operational.

He said by 2007, the original cost of RM5.35bil ballooned to RM6.7bil, a 26% increase.

Mohideen said the auditor general reported that the ministry had paid RM4.26bil, although only RM2.87bil worth of work had been completed, implying an overpayment of 48%. He said the Cabinet also waived late penalties of RM214mil.

A comprehensive list can’t be contained within this space because, sadly, it’s never-ending.

To take consolation, similar malpractices are reported all over the world.

Dr Zia Ul Haque Shamsi’s report on July 19, 2021, described India as having the most corruption scandals when it comes to buying arms and equipment.

He said India was plagued with scandals of military transactions despite stringent and painstaking bureaucratic processes for the approvals of defence procurements.

It will only be a matter of time before similar specialist writers on defence use Malaysia as a case study, especially when our approval process can hardly be described as rigorous.

As lawyer Mohideen rightly said, “the incestuous relationship between politically connected local agents of foreign arms manufacturers and the ministry must be ended.”

Enough is enough. It’s time we clean up our act and stop the country being looted through Mindef.

This entry was posted in On the Beat on August 21, 2022 by wcw. 

http://wongchunwai.com/2022/08/forces-face-farce/

 Wong  Chun Wai

Wong Chun Wai

Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 35 years in various capacities and roles. He is now group editorial and corporate affairs adviser to the group, after having served as group managing director/chief executive officer. On The Beat made its debut on Feb 23 1997 and Chun Wai has penned the column weekly without a break, except for the occasional press holiday when the paper was not published. In May 2011, a compilation of selected articles of On The Beat was published as a book and launched in conjunction with his 50th birthday. Chun Wai also comments on current issues in The Star.

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Monday 9 May 2022

Keep our talent

 

Malaysian pride: Tan, who is from Muar, was appointed to the most senior technology position at Nasa recently. – nasa.gov

 NASA Engineer Florence Tan presented a Maniac Lecture entitled, "From Malaysia to Mars." Florence talked about her journey from Malaysia to NASA Goddard Space Flight Center, where she has been working on planetary mass spectrometers, which is characterized by challenges, frustration, excitement, and rewards.

 Only with the application of inclusiveness will retain our best workforce.

EVERY time we read about Malaysians making a mark globally in their respective fields, pride and joy course through our veins knowing these people have elevated our country’s standing.

Recently, that proverbial uplifting news featured six young Malaysians acquiring seats in the prestigious Harvard University for the class of 2026.

The students received offers of admission amidst stiff competition from a global applicant pool of 61,220 students, it was reported.

Last week, another piece of good news surfaced. A Malaysian from Muar, Johor, Florence Tan, was appointed Deputy Chief Technologist at the National Aeronautics and Space Administration (Nasa) – the most senior technology position.

She had left Malaysia at 18 to study in the United States, and then started to work with Nasa, beginning as an intern at one of its research centres.

When I read those two stories, I couldn’t help pondering if the six Harvard students would return to Malaysia someday, perhaps after gaining experience in the US and other countries.

And what can Tan really do in Malaysia, even if she chose to return home? After all, we can’t cater to her expertise, experience and skill in Your chance to fly Singapore Airlines to London for free with this new card from Maybank

But more and more, when we read of these high achievers, the media is compelled to refer to them as “Malaysia-born,” which is a euphemism for Malaysians who have emigrated overseas and are not nationals of our country any longer.

At least we’re sure that two legendary Malaysians of global repute, Hollywood actress Tan Sri Michelle Yeoh and shoe designer Datuk Jimmy Choo are hanging on to their Malaysian passports.

Unfortunately, Malaysia is one of the countries most affected by brain drain, as it faces a major problem in not only being incapable of delivering the required talent, but also in failing to retain the current local talent or attracting foreign ones, as a report in cs.stanford.edu put it.

The World Bank defines brain drain as the migration of talent across borders, which has an impact on Malaysia’s aspiration to become a high-income nation.

“Human capital is the bedrock of the high-income economy. Sustained and skill-intensive growth will require talent going forward.

“For Malaysia to be successful in its journey to high income, it will need to develop, attract, and retain talent. Brain drain does not appear to square with this objective: Malaysia needs talent, but talent seems to be leaving.

“Brain drain is a subject of intense debate and controversy, but surprisingly few studies have characterised the phenomenon in the Malaysian context – be it in terms of magnitude, impact, or policy response.

“What complicates matters further are the statistical discrepancies that limit the quality, availability, timeliness, and comparability of international migration data,” wrote its senior economic advisor Philip Schellekens.

He quoted the World Bank’s Malaysia Economic Monitor saying that the Malaysian diaspora – the group of skilled and unskilled Malaysia-born women, men and children living overseas – is estimated conservatively at one million worldwide as of 2010.

“A third among these represent brain drain – those with tertiary education among the diasporas. This is not to suggest that others are not ‘brainy’, but educational attainment is the only available proxy that is consistently available across recipient countries.

“To put the numbers in perspective, two factors are important: the size of the skills base and the profile of immigration.

“Because of the narrow skills base, brain drain is intense in Malaysia and is further aggravated by positive selection effects, as the best and brightest leave first.

“Further, brain drain is not alleviated by compensating inflows, since migration into Malaysia is mainly low-skilled with some 60% with primary education or less and the number of high-skilled expats has fallen by a quarter since 2004.”

As of 2019, there are 952,261 Malaysians or Singaporeans of partial or full Malaysian origin residing in Singapore. And including the permanent population in the country, about 350,000 Malaysians cross the Johor-Singapore Causeway daily to commute to work or school.

Australia is another popular choice for Malaysians, with 177,460 people living there in 2020, according to a report, while the 2016 census from the Australian Bureau of Statistics reveals that 138,364 Malaysians became permanent residents or citizens.

There’s nothing wrong with us continuing to look for low-skilled labour for our oil palm estates, restaurants and homes – many West Asian countries are in the same predicament. However, Malaysia needs to embrace the global mobility of talent, too.

For a start, we must admit that the biggest criteria are the differences in earnings, career prospects, opportunities, professional exposure and quality of life.

The elephant in the room for many Malaysians is the discontent with our country’s affirmative policies, particularly among the non-bumiputras who see their chances of climbing up the ladder hampered by their ethnic origin.

The painful truth is, many talented non-bumiputras, especially the Chinese, make up the bulk of the diaspora.

In all fairness, the government, via Talent Corporation Malaysia, has developed many initiatives to encourage Malaysians to return, but a better carrot needs to be dangled.

Singapore, one of the best-run countries, has the same problem as it faces a challenge to retain quality citizens because the country’s brain drain rate is higher than the global average with six in 10 Singa-poreans willing to leave the country in pursuit of a better job, according to a Randstad Workmonitor research report.

The study revealed that the brain drain rate in the Lion City is higher than the global average of 50%. It’s also higher than Hong Kong’s 56%, but slightly lower than Malaysia’s 66%.

It said 68% of Singaporean workers, aged between 18 and 34 years old, are willing to pack up and leave their country.

In many ways, ethnic Chinese, like their forefathers, are a migratory race, regardless of their nationalities, with many selecting Canada and Australia as their choices during the last 20 years, according to statista.com

In 2013, the United States and Canada became the countries with the highest immigration rate of millionaires from China, according to Hurun Research Institute.

China is reportedly one of the world’s largest emigration countries as well as the country with the biggest outflow of high net worth individuals between 2003 and 2013. Likewise for many Hong Kongers and Taiwanese.

Our politicians love to use the term “world class” when they talk about Malaysia, but we need to really walk the talk or else it remains hollow and unconvincing. If we’re indeed top of the heap, we should be getting top notch workers queueing up to work here. 

Wong Chun Wai

Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 35 years in various capacities and roles. He is now group editorial and corporate affairs adviser to the group, after having served as group managing director/chief executive officer.On The Beat made its debut on Feb 23 1997 and Chun Wai has penned the column weekly without a break, except for the occasional press holiday when the paper was not published. In May 2011, a compilation of selected articles of On The Beat was published as a book and launched in conjunction with his 50th birthday. Chun Wai also comments on current issues in The Star.

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Sunday 14 July 2019

China-Hong Kong union needs sense of inclusion

Hong Kong. -Bloomberg pic
China is a different global power

https://youtu.be/pyARhD2jHjY

The Chinese way of ruling

https://youtu.be/BPV8mBAiuZ0

While the China-Hong Kong union still sits uncomfortably at times two decades on, the road ahead is slowly but surely being paved.

IT’S lunch time in Hong Kong, but the soya sauce chicken rice seller at Queen’s Road in Shek Tong Tsui is looking distressed as the crowd isn’t up to expectations.

Rental is high in Hong Kong and customers are obliged to share tables in small eateries like the one I was in.

Once eagle-eyed restaurant owners spot the conclusion of a meal, patrons are swiftly handed their bills, subtly suggesting they leave the premises to make way for incoming customers. Otherwise, they’d earn short shrift from irate staff.

Life is hard in HK and most residents feel that it has become much harder.

The older ones are more tolerant and patient because they have lived through the country’s high and low points. They include those born in China who came to the island with their parents.

Retired civil servants complain of promotions bypassing them because the top posts were reserved for the whites under British colonial rule. They felt humiliated and have never forgotten this marginalised treatment.

The young ones are becoming angrier now. They see HK deteriorating, reflected in their inability to buy a flat the size of a car park lot, because something even that small would probably cost millions of ringgit.

HK is a crowded city where space is at a premium. Space, meaning a hole in the sky. Landed properties are for the super rich in a land where being rich alone isn’t enough.

Regular visitors to HK will tell you that the streets are filled with people for a simple reason: it can be claustrophobic living in a 400sq foot – or less – flat.

HK residents sometimes joke that they need to leave their flat to provide “privacy” for newly married children who sometimes can’t afford their own homes and still need to live with their parents.

“The walls are too thin, and it is best we give them some space, you understand what I am saying, right?” said my HK friend as we chuckled about the reference while dining on dim sum.

The waiting period for public housing is five years, if you are lucky, and it’s not uncommon to see an entire family living in one room in many parts of downtown HK. Apparently, more than 200,000 people live in subdivided homes.

Forget politics for a minute and let’s talk facts. An international survey reportedly showed HK sliding 12 places to an embarrassing 41 as a liveable city for Asian expats, its worst ranking in a decade.

“We call ourselves Asia’s world city, but Asians have given us the thumbs down as a liveable city. That’s a paradox that should shame us,” the South China Morning Post (SCMP) newspaper reported.

Over the last two decades, HK people have found themselves priced out of the home market. The cost of living has gone up, but the standard of living has dropped sharply.

The smog has worsened and there are regular reports of hospitals overflowing in the winter months every year, ushering in the routine flu outbreak.

The competition for space is a serious concern in HK. The resentment towards China is simply because people in HK have found it hard to compete with the deluge of mainlanders.

Each time I go to HK, I can’t get past the sight of long queues of people from China – with deep pockets – at luxury goods outlets at Central.

“Last year, 65 million tourists flooded Hong Kong. That’s only about 10 million fewer than for the whole of the United States. Almost 80% who came were mainlanders, most of them day trippers who swarmed residential areas to buy groceries, ruining the quality of life for locals.

“How can life quality improve if you add the four million mainlanders who come monthly, on average, effectively raising Hong Kong’s population to well over 11 million?” pondered columnist Michael Chugani in the SCMP.

Milk powder is a favourite item of the mainlanders when it comes to groceries because of food safety concerns back home. Every mum and pop shop in HK seems to share a similar inventory.

HK people are loud and opinionated. And often crude and crass even, especially, when speaking in Cantonese. This is a city of very hardworking and motivated people. It’s commonplace for a person to be doing two or three jobs to ensure ends are met, but these people also acknowledge the city has long passed its prime, with stats indicating its lost position as one of Asia’s top cities.

It has surrendered its edge as a financial hub to Shanghai and even nearby Shenzhen.

Chronicling the events of the last two decades reveals how those fortunes changed. Imagine that in 1997, China was very much reliant on HK, largely because the global superpower had not yet made it into the ranks of the World Trade Organisation (WTO), which was stunting and limiting its export trade.

So HK’s position as a channel for entrepôt trade was exploited to deliver mainland-made goods to the rest of the world via its ports, and crucially, by circumventing the WTO’s trade restrictions. But that all changed when China entered the organisation in 2001, and from then HK began to play a diminishing role. The island went from handling half the republic’s trade in 1997 to a measly 12% today.

“In terms of total size and wealth, Hong Kong has also shrunk relative to China, which has experienced more than three decades of astoundingly high economic growth. In 1997, Hong Kong’s economy was one-fifth the size of China’s, and its per capita income was 35 times higher. By 2018, Hong Kong’s economy was barely one-thirtieth the size of China’s. Hong Kong is still richer, but the gap is narrowing, with its per capita income now five times higher than China’s,” claimed the New York Times International.

And to exemplify China’s newly accrued wealth, on a trip to Guangzhou, my jaw dropped when I saw the homes of the mainland Chinese in a sprawling gated property built by Forest City.

The HK film industry has nearly collapsed. With only the TV dramas in Cantonese keeping some actors home, most HK movie stars and singers have moved to China, where they are better paid and command bigger audiences.

Some still struggle to speak fluent Mandarin and drop their Cantonese accent, but most have successfully made the transition.

Knowing the realities of the huge China market, and not wanting to offend their audience, most of these big names opted to stay away from the recent HK protests. Pro-Beijing Jackie Chan was lambasted for pleading ignorance of the protest march.

Still, HK has its assets, though. It has an efficient administration system and remains an important channel. In China, tighter capital control measures are making it increasingly difficult to access outside money, the SCMP said.

“Hong Kong is also a top offshore yuan trading centre, leading the way for wider use of the Chinese currency in trade and finance – a priority for Beijing as it pushes for the yuan’s internationalization.

“... Hong Kong can also do more down the road. It can foster an ecosystem for the yuan currency, developing derivatives and indexes to convince people to hold the yuan in larger amounts,” Oliver Rui, a professor of finance and accounting in China, was quoted.

But China needs to do more to secure the faith of the islanders.

HK people understand and accept they are a part of China. There is no turning back and nothing is going to change that.

Hoisting British flags may be the manifestation of frustration for the idealistic young, but it won’t change their destiny.

At the same time, China needs to wake up to the fact that only 3.1% of those aged between 18 and 29 in HK see themselves as broadly Chinese (China nationality). This compares to 31% in 1997, according to a report based on a survey by the University of Hong Kong.

And we know that many of those who took part in the recent street protests included secondary school children, some not yet even 18 years old.

Even though China has overtaken HK, particularly from an economic standpoint, Beijing needs to foster and maintain a sense of inclusion, especially when the islanders don’t feel they are a part of China.

There was a time when HK residents laughed at mainlanders, calling them the disparaging “Ah Chan”, or village simpletons. However, mainlanders are growing richer and more powerful now. But like all good “bosses”, China needs to treat the island’s residents with respect, and it needs to motivate and win over their hearts and minds. China must make them proud to be Chinese citizens.

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Sunday 7 April 2019

Middle class malady

Struggling and frustrated: Most aid goes to the B40, leaving the M40 feeling adrift and on their own.
 The economic future of the country looks scary, and if the young bankrupts and imminent retires are not atteended to soon, we could be in truly tough times.

THE economy is the most talked about topic among Malaysians, with issues including the increasing cost of living, shrinking ringgit, continuing weak economy and sadly, the endless politicking.

While attention has been cast on the Bottom 40, or the group known as B40, as they make up the lowest earners, the middle class, the Middle 40, or M40, shouldn’t be forgotten either.

Malaysians are categorised into three different income groups: Top 20% (T20), Middle 40% (M40), and Bottom 40% (B40).

To be in T20, a household’s monthly income should at least be RM13,148, while the M40 and B40 groups have raised their bars to RM6,275 and RM3,000 respectively.

We don’t need a survey to know that the people in the bottom half of M40 and B40 are barely making ends meet and struggling to maintain a decent lifestyle.

At the lowest end, 70% of these poorest are the bumiputeras, while the rest are Chinese and Indians, which proves the poor comprises all races.

The M40 – which forms 40% of Malaysia’s population – includes mostly wage earners, in both public and private sectors.

The bulk of their income goes to paying the car and housing loans, rent, and groceries. After deductions from the essential bills, such as phone, Astro, petrol, and children’s education, there’s barely anything left to save.

It’s harder for those who need to take care of their ageing parents, a noble endeavour which naturally includes settling healthcare bills, and even expenses for care takers.

And since the majority of the M40 lives in the cities, the household income of RM6,275 is almost negligible, and they can hardly be faulted for feeling that their standard of income has dipped drastically while the cost of living has increased.

The M40 essentially comprises the most frustrated lot since most aid goes to the B40, leaving the former feeling adrift and on their own.

Most of them don’t have alternative revenue streams besides their monthly wages, and they are dependent on corporate performances, so the overall economy is key.

They are unlikely to care that the Department of Statistics’ Household Income and Basic Amenities survey indicated that the mean income of households in 2016 reached RM6,958, a 6.2% annual appreciation from RM6,141 in 2014.

The survey also revealed the incidences of poverty decreased from 0.6% of the population in 2014 to 0.4% in 2016. Compared with the population of 30.7 million in 2014 and 31.7 million in 2016 (from the same portal), the numbers also decreased from 184,200 to 126,800 from 2014 to 2016.

The 11th Malaysia Plan (2016 – 2020) Mid-Term Review stated that the mean household income is predicted to reach RM8,960 by 2020.

The term “middle class” has different meaning and measurement to economists and academics from those classified in the M40 category.

As one analyst rightly pointed out, a household of four living in the Klang Valley with an income of RM4,000 per month, would be classified as urban poor due to the higher cost of living. However, that income would be comfortable to live in Pasir Mas or even Taiping.

It won’t be wrong to suggest that at RM4,000, that’s only enough for a single person to live in the Klang Valley.

We need to understand that the key people driving the country’s economy are the middle-income and top earners, many of whom feel they have fallen between the cracks of progress.

At every Budget, they seem to be the forgotten Malaysians, and each year, they hope for lower level tax bands for themselves, so they can have extra disposable income, but that never happens.

Khazanah Research Institute’s (KRI) State of Households 2018 revealed a steady increase in the income gaps between the Top 20% (T20), M40 and B40 groups since the 1970s. In 2000, the estimated real mean household income differences between T20 and M40, M40 and B40, and T20 and B40, were RM6,000, RM2,000 and RM8,000 respectively.

By 2016, however, it increased to RM9,000, RM4,000 and RM13,000.

These figures show that T20 households are gaining wealth at a faster rate than the rest.

Despite the improvement in mean household income figures, the gap between income groups continues to rise, and the survey added that “the escalating cost of living has put financial pressure on the M40 and B40 groups.”

“With income growing at a slower pace compared with the cost of living, the M40 and B40 groups are experiencing an abridged disposable income, which could be detrimental to future consumption, activity, emergency or debt services.”

Combining data from the Department of Statistics’ Household Income survey (2016 and 2014) and KRI household reports (concerning population increase), it’s clear that the percentage of households living under the 60% median grew from 2014 to 2016 by 41.8% to 43.5%, with an estimated 2.8 million households in 2014 and three million households in 2016.

The increase also suggests that more M40 households have slipped into the B40 category – and this is where the alarm bells go off.

In the 11th Malaysia Plan (2016-2020), targeted subsidies, cash handouts, healthcare benefits, education, along with employment and entrepreneurship opportunities, include the usual strategies to ease the burden of B40 households.

One of the major concerns among the young M40 family is that they can no longer afford to buy a “middle class” home, and the difficulties have been aggravated by how they need to live relatively close to their workplace.

As much as the government expects housing developers to build affordable houses, let’s not forget that most of these developers have bought land at premium prices, and as private concerns, they still need to make profits.

But homes in Malaysia have become “seriously unaffordable” by international standards, and there’s no need to point fingers at developers when the governments have basically failed to do the job, unlike Singapore’s Housing Development Board (HDB), which builds and upkeeps flats that don’t degenerate into urban slums.

Their HDB flats are so well-designed and maintained that they can pass off as high-end apartments by Malaysian standards.

Bank Negara reported that from 2007 to 2016, house prices grew by 9.8% while household income only increased by 8.3%. While developers blamed rising construction costs – including labour outlay – and stagnant salaries for the increase in house prices, all this means nothing to the M40, because ultimately, they still can’t buy houses.

The rent-to-own scheme which the B40 has enjoyed from the low cost houses, needs to be extended to the M40, so they, too, can enjoy the same benefits, and while such help is expected to come via PRIMA Corp, a federal government-linked developer which supposedly caters for M40, it’s still falling behind schedule.

While it could be easy for the M40 to request more support, including allowances for school-going children, and even free student passes for public transport, it’s time that financial literacy be introduced at school level. A study by S&P Global Literacy Financial in 2014 showed that the financial literacy rate in Malaysia is only at 36%, compared with 59% in developed countries.

“The low financial literacy rate is among the factors that has contributed towards high levels of debt – including worrying bankruptcy problems – among the youth.

“Between 2013 and 2017, a total of 100,610 Malaysians were declared bankrupt, of which 60% were between 18 and 44 years old,” according to Finance Minister Lim Guan Eng.

Apart from the youth, Lim noted that older Malaysians are also facing serious financial challenges, particularly when it comes to their retirement.

Based on estimates by the Employees Provident Fund (EPF), he said that as of 2019, an individual requires savings of at least RM240,000 by age 55 to retire comfortably.

However, based on the EPF 2017 Report, active contributors aged 54, have average savings of only RM214,000 in their accounts.

“What is even more worrying is that two-thirds of contributors aged 54, only have RM50,000 and below in their EPF accounts in 2015,” he reportedly said, adding that this was well below the recommended amount for savings.

Lim noted tha the low amount of savings was inadequate and estimated it to run out within five years of retirement, although the average life-span of Malaysians is 75.

Basically, the B40, M40 and, our young and old Malaysians, are all either grappling with financial problems, don’t know how to handle their money, or don’t even earn enough in the first place.

This is unlike the situation for the T20, which has disposable income where their wealth encourages investment and wealth creation, the main principles of the T20 group.

But of all people, politicians should know the importance of the people wanting to have money in their pockets and feeling well heeled.

Easier loan payments, good refinancing packages and transport allowances should be considered to help the M40.

If the market continues to slide, there will be many unhappy people, and the resentment will translate to protest votes. For them, it simply means the government is doing a lousy job, and they couldn’t care less for the reasons, however valid they may be.


Wong Chun WaiWong Chun Wai

Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 27 years in various capacities and roles. He is now editorial and corporate affairs adviser to the group, after having served as group managing director/chief executive officer.

On The Beat made its debut on Feb 23 1997 and Chun Wai has penned the column weekly without a break, except for the occasional press holiday when the paper was not published. In May 2011, a compilation of selected articles of On The Beat was published as a book and launched in conjunction with his 50th birthday. Chun Wai also comments on current issues in The Star.

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Sunday 3 March 2019

The persistent pipe dream: some politicians play religion and race cards ended up becoming rats themselves


It's been more than six decades since Malaysian independence, yet, more than ever, some politicians continue to wield the race and religion cards to divide us.

PATHETIC and disgusting. That’s surely an understatement in describing the continuous racist slurs non-Malays have had to endure.

Using non-Malays – particularly the Christians – as bogeymen hasn’t ended, even more than six decades after independence.

The situation has probably worsened because social media has made things more evident and amplified them. Thankfully though, politicians selling venom to their target audience can no longer be a covert affair.

These chameleons used to stir the hornet’s nest of race and religion with the Malays, portraying themselves as champions of their community. And then, they have no qualms attending events at Chinese new villages, where they try to please the residents by professing to be one people. Just to add value to the “show”, even a calligraphy writing session is entertained. Next on their “tour” – get on stage, put their palms together, and greet the people in Tamil, and then do the dance bit, of course. And we bought all that, believing they portrayed the real Malaysia.

Incredibly, some are still doing the rounds. For a fresh twist, the LBGT element has even been thrown in now, and despite the charade being recorded, clarification must be issued to say otherwise. You know, I didn’t mean it.

Someone has forgotten that it isn’t only the ghosts, drunkards and LBGT community who are still awake at 11pm and need to use the toll.

These commuters include nurses, doctors, policemen, security guards, hawkers, taxi drivers, restaurant employees, firemen, factory workers, food deliverers and of course, journalists too, and we often work the infamous graveyard shift.

Scoring points and teaming up with an equally repulsive partner to create suspicion against other fellows, with fictional threats of race and religion, is just unacceptable.

While we cringe over the thought of how there are listeners who buy their hate speech, we expect these politicians to at least rise above these nauseating tactics and convince the people that they can provide better governance and deliver more than the present government.

They should prove to the people that the new government’s failings include not fulfilling its election promises, allowing the cost of living to go up and watching the ringgit’s value shrink. And to add ammunition, highlight how some ministers have even failed their probation.

That’s what a fault-finding Opposition is supposed to do – ensure check and balance, and behave like a government in-waiting, but here we have opposition Members of Parliament who can’t wait to broker a deal by defecting to the government’s side of the fence.

There’s another distateful story. It’s about an Umno MP who crossed over to Parti Pribumi Bersatu Malaysia and had the gall to admit that he was doing it for the constituents.

So, we have an odd situation where opposition MPs mourned the defeat of the previous government even after almost a year, and now plot to join the new government. Not plot to topple, of course, not that again, but plot to join. Naturally, it’s in the interest of the people.

We believe you, well, some of us do. Most of us know it’s just a lie, but hey, we are in the era of malu apa ...

Then, there are the “remnants”, who probably won’t be accepted by the new government, and figure that the only way for them to get back on the gravy train is to stoke the fires of racial and religious sensitivity. You’ve got to give it to this lot, though. They are, at least, fighting back, although their methods are pretty despicable.

However, the hate speeches will likely work in some constituencies, where, like oil, it burns the minds and hearts of angry voters who are already struggling to put food on the table for their families.

Still, it’s the pits when someone like Barisan Nasional secretary-general Datuk Seri Nazri Aziz resorts to claiming that having a non-Muslim Attorney General is not “lawful” since he took oath without swearing on the Quran. Nazri, of course, is bluffing, but he’s like those snake oil peddlers who will say anything to make a sale.

Nowhere in the Federal Constitution does it state that an AG needs to take an oath using the Quran. And surely, we won’t expect the likes of Nazri to concede that in the history of Malaya, there were six British AGs.

Cecil Sheridan, who died aged 88 in 2000, was the last British Attorney-General of Malaya and helped in drafting the constitution of its successor state, Malaysia.

When Malaya attained independence in 1957, Sheridan was promoted to Solicitor-General and in 1959, became the country’s Attorney-General. He also helped in the preparations for the formation of Malaysia in 1963 and in the process, worked closely with Tunku Abdul Rahman, the Prime Minister of Malaya, Tun Razak Hussein, its deputy Prime Minister, and Lee Kuan Yew, of Singapore.

True, the eight subsequent successors were Malays, but there’s no race and religion criteria in the appointment of the top-ranking public prosecutor of the country.

The first Lord President of Malaysia – now renamed Chief Justice – was a Scot named Tun Sir James Thompson, who assumed the post in 1963 when Malaysia was formed. He held the post until 1966.

Likewise, after independence in 1957, Malaysia's first two finance ministers were ethnic Chinese – Tun H.S. Lee and Tun Tan Siew Sin. However, from 1974 until very recently, the post had been held by Malays.

So, what we are effectively saying is that our founding fathers had no issue with the ethnicity of these important posts such as chief judge, attorney general and finance ministers. However, as six decades have worn on, we have become more degenerate, insisting on focusing on race and religion, instead of qualifications, credibility and integrity as the main criteria?

Certainly, these men, who held the loftiest positions, did well then, and many of us can accept that they didn’t collude with individuals to loot the wealth of this country and the Malays – who make up the bulk of Malaysians.

The harsh reality is that the pilfering and corruption are shamelessly executed by those claiming to fight for their race and religion. They shouldn’t blame anyone else or try to fan the flames of racial discontent to save themselves. Malaysians are tired of such perversion, so we can’t allow such incorrigible politics to proliferate in our beloved country.

One Chinese Finance Minister, a Christian Chief Justice and an Indian Attorney-General aren’t going to be able to control a country of 31 million people, where Malays and the indigenous people make up 61.7%, compared to the the shrinking Chinese (20.8%) and Indian (6.2%) population.

As for religion, according to a 2010 estimate, Muslims number most at 61.3%, Buddhists 19.8%, Christians 9.2%, Hindus 6.3% with Confucianism, Taoism and other Chinese practices at 1.3%, others 0.4%, no religion 0.8%, unspecified 1%.

As for the 1.6 million civil servants – the then-Minister in the Prime Minister’s Department Datuk Seri Shahidan Kassim told Parliament that as at December 2014, the ethnic composition of the civil service was as follows: 78.8% Malays, Bumiputera Sabah (6.1%), Bumiputera Sarawak (4.8 %), Chinese (5.2 %), Indians (4.1 %), other Bumiputera (0.3%) and others (0.7%).

As for the police force, then-Home Minister Datuk Seri Dr Ahmad Zahid Hamidi said non-Malays only made up 5% of the 133,212-strong force.

“Of the total, 80.23% or 106,871 are Malays, while Chinese make up only 1.96% (2,615), Indians 3.16% (4,209), Punjabis 0.21% (275) and others 14.44% (19,242),” he said in replying a question by Raja Kamarul Bahrin Shah (Amanah-Kuala Terengganu).

And we haven’t even counted the Prime Minister, Deputy Prime Minister and the Malays holding key posts in the Cabinet, and of course, the overwhelmingly Malay armed forces, numbering 420,000 personnel. It’s downright contemptible for our politicians to make fictional claims of non-Malays gaining control of the country, when the facts and figures clearly speak for themselves. For most rational Malaysians, we just want to see a clean government and civil service, which can safeguard our national interest, regardless of race and religion.

The late Chinese premier Deng Xiaoping famously said that it doesn’t matter if the cat is black or white, so long as it catches the mice.

Wong Chun WaiOur recent history has showed that our big fat cats didn’t catch the mice but ended up becoming rats themselves.


Wong Chun Wai

Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 27 years in various capacities and roles. He is now editorial and corporate affairs adviser to the group, after having served as group managing director/chief executive officer.

On The Beat made its debut on Feb 23 1997 and Chun Wai has penned the column weekly without a break, except for the occasional press holiday when the paper was not published. In May 2011, a compilation of selected articles of On The Beat was published as a book and launched in conjunction with his 50th birthday. Chun Wai also comments on current issues in The Star.

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Image result for Malaysia's' pipe dream

Sunday 24 February 2019

For the love of our troubled nation in full parade


Casting whining and whinging aside, it's time we pull our socks up, put our best foot forward, and show the world what Malaysia is all about.

IT’S time for Malaysia to change its narrative. For a start, our leaders must end the hyperbole of how the previous Barisan Nasional government stripped and looted the country’s wealth.

We generally know enough about the financial crime of the century, the hunt and arrests of those implicated in the cases.

Datuk Seri Najib Tun Razak and his wife, Datin Seri Rosmah Mansor, are facing a barrage of corruption and money laundering charges, and they are expected to spend the next five years in court.

The main character, the infamous Jho Low, and his family, are on the run, and it’s a given fact that the long arm of the law will eventually reach them.

A corrupt government has collapsed, and it’s now coming to a year since the new federal leaders took charge.

Malaysia can’t continue telling the world how we’re a troubled country with a deep financial hole, and neither should we keep contradicting our stand.

We can’t be saying we’re near bankrupt one day, and the next, concede that our economy is in good shape.

The Pakatan Harapan government marks its first year at office in May. So, its ministers can’t still be whining about inherited problems of a 60-year-old government forever.

Many of the current leaders, including the Prime Minister, were part of the system, and in the case of Tun Dr Mahathir Mohamad, he was at the helm for 22 years, lest we forget.

Admittedly, an eye-watering amount of money has been pilfered, so, the government needs to retrieve what’s stolen.

Ironically, PH was elected to fix these problems.

Malaysia can’t seem like an attractive business proposition with our troubled nation in full parade, especially when investors have many countries to choose from.

The country’s economy for the next two years will be turbulent, but forming the Economic Action Council is a good start to indicate that we intend to tackle the issues together, with public and private participation.

The Prime Minister has made the right move, but the EAC must run fast to come up with confidence-building measures.

Against the backdrop of a challenging environment for global equity markets and a US-China trade war, Malaysia has continued to tread on a steady economic path. It’s slower than we want to, but at least a recession isn’t looming.

Finance Minister Lim Guan Eng must continue his positive tones, as he has finally been doing, to renew confidence both locally and internationally.

The idea of revenue through taxation should be canned, but grumblings among the small base of individual taxpayers is ringing out loud.

It’s unfair to keep scrapping for crumbs from these taxpayers. A more progressive tax regime should be in place. Give it a name if necessary, but importantly, a firmer consumption tax is required because it will be fairer. It’s simple, if you don’t spend, you don’t pay.

In a way, it needs to be balanced out since individuals can’t be paying both income tax and consumption tax.

Lim has taken the right direction to keep selling the messages of how Malaysia has introduced policies and measures to invigorate the capital market.

“Our stock market has remained resilient in comparison with our peers in Singapore, Thailand, Hong Kong and China.

“Amidst large capital outflows among emerging markets and Asean countries this year, the FBM KLCI benchmark index registered a year-to-date decline of 5.8% as at end-November, compared with other Asian markets that have experienced declines ranging from 9.1% to 22.7%.

“And, we are the second-best performing stock market in the Asia Pacific region,” he said recently.

There is other good news which we’ve yet to shout out loud enough for, like Malaysia currently ranking 15 from 190 economies in its facilitation of commerce, according to the latest World Bank annual ratings.

Malaysia’s ranking improved to 15 in 2018 from 24 in 2017. Ease of Doing Business in Malaysia averaged 18.18 from 2008 until 2018, reaching an all-time high of 24 in 2017 and a record low of 6 in 2013, it was reported.

Although we may have lost crucial time, we still have a year to make Malaysia look good because two major events take place next year.

Highlights for 2020 include Malaysia celebrating Visit Malaysia Year, and hosting the Asia Pacific Economic Cooperation (Apec) leaders’ summit, some 22 years after doing so for the first time.

Let’s do it right and make Malaysia proud. It’s not just an occasion befitting Dr Mahathir, but all Malaysians as stakeholders.

The government’s proverbial tale of empty pockets isn’t an excuse anymore. It just doesn’t work that way. If we need to spend, we need to find the money, because we expect a return on investments.

We need to finance-telling a good story internationally, it’s that simple.

However, the lack of momentum to galvanise the nation hasn’t been motivational.

The world doesn’t want to keep hearing our negative stories and neither do Malaysians.

Tell the world we have fixed it and now we’re on the road again.

Come May, and it’ll be crunch time for underachieving ministers.

Everyone invariably tries their best, but those who are unfit just shouldn’t get the nod. After all, the last thing PH needs is painting a picture of a failed administration, but the coalition should be wary of many Malaysians believing the Barisan government fared better.

It’s unfair how some ministers are passing the buck to the PM because they lack the confidence to decide or are just indecisive because the responsibilities of their portfolios exceed their ability.

Visitors to Dr Mahathir’s office have noticed the growing mountain of uncleared documents, which is surely too much a task for anyone, what more a 93-year-old man.

We need to take advantage of the new Malaysia to construct a fresh national narrative which emphasises Malaysia and Malaysians.

There is a need to build national pride over the coming years, one which makes trust and integrity its main framework.

A shared vision beyond 2020 is crucial. Also, to bring Malaysians together and not let race and religion hijack the national discourse.

The question now is, do our leaders have the gumption for this, or will they just let New Malaysia be another piped dream?

By the time world leaders take the stage in KL, Malaysia should be ready to display a new sense of direction, purpose and plan.

Wong Chun WaiWong Chun Wai

Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 27 years in various capacities and roles. He is now editorial and corporate affairs adviser to the group, after having served as group managing director/chief executive officer.

On The Beat made its debut on Feb 23 1997 and Chun Wai has penned the column weekly without a break, except for the occasional press holiday when the paper was not published. In May 2011, a compilation of selected articles of On The Beat was published as a book and launched in conjunction with his 50th birthday. Chun Wai also comments on current issues in The Star.

chunwai@thestar.com.my https://twitter.com/chunwai09 http://www.wongchunwai.com/

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