Foreign writer Bryant’s comments on Mahathir’s article : Kaki dalam Kasut

Comments from a foreign writer Bryant on Mahathir's article:- Kaki dalam Kasut where he says the Chinese are the real masters of Malaysia.

This article was written without fear or favour, and it is up to us, all Malaysians (irrespective of race, colour, creed or religion) to individually digest the veracity of the matter.


To: The highly respected Tun Mahathir,

China is coming up, India is coming up, Vietnam is coming up and now even Russia is on the rise.. In this flat world that is all wired up and regardless whether we are Malaysian Malays, Chinese or Indians, and if Malaysia does not progress, all of us would become history of this country!

Without the Malays, the Chinese could not do well in the country and without the Chinese, Malays would not do well. Both have to work together to bring up Malaysia and mitigate the ascute impact that is being brought about by globalisation.

For me, a true leader is someone who has the foresight that not only focuses on one particular group in the country but takes care of the future of everyone. A good leader is someone who knows what is the biggest threat the country is facing and directs the people to fight off the threat. A leader is also someone who is impartial that has the ability to promote harmony in the country for a long period of time.

UMNO is a political loser that leads the country to nowhere. They do not understand what is going on in the outside world. They have no clue where Malaysia will be in the next 30 years. With the 3 new superpowers, i.e India, China and Russia standing tall and high together with the USA and the Europe Union, they do not know what kind of world it would be and how Malaysia is going to compete and share the ever smaller slice of cake of the world economy. They only know how to get the Malays to fight with other Non-Malays on tiny issues within Malaysia , while these races know jolly well that the issues they are fighting are trivial and are totally self-satisfying.

UMNO does not give a damn to how the poor Malays are going to live in the future and they do not care about the real benefits of the poor Malays. They only want the votes from them. The NEP is a good evidence on how they benefit the cronies, instead of the poor Malays. Despite all their despicable acts they are still in the power.

The highly respected Tun,

As you are aware, the Malays control the rights to all the lands and all other natural resources in this country. They control all government institutions, GLC and State owned companies. The Malays dominate the lawmaking process in Malaysia ; The Malays control the decision making process in formulating the economy policies. The Malays own the largest national assets and the Malays are given shares in the public listed companies for free. The Malays have also been given all kind of priorities when it comes to buying properties, awarding of public contracts, tertiary education opportunities, awarding of scholarships and even getting a job in government departments.



With all these privileges and rights enjoyed by the Malays, you are saying nothing has been done enough to help the Malays to catch up with other races, mainly the Chinese. Then what else should Malaysia do to satisfy the Malays? Did the Chinese seize or rob anything away from the Malays or was all their wealth, a result of their hard work? If it is all due to their hard work, why do you say it is unfair? I don't quite get your point here.

May I humbly ask you what do you expect the Chinese to do if your so-called NEP did not achieve the desired result? Would the Malays be happy if the ethnic Chinese in this country do any of the followings:

- surrender their assets and hard earned money to the Malays unconditionally;
- not to engage in any business activities;
- not to score As in all sort of examinations;
- not to make money that is more than the Malays are earning;
- not to advance to higher education; or
- renounce their citizenships and go back to China or migrate to some other countries?

I am a foreigner but I am surprised that your intention is to divide your own country. I think you are mainly targeting the Chinese. Frankly, tell us, what do you expect the Chinese to do in order to achieve what is so called "equality" meant by you?

Tun, after all these criticisms you have against the present government, I feel that you are starting to loose your rationality on your arguments. You have run out of good reasons to convince us. I guess it could be due to your accumulating jealousy of Mr Lee Kuan Yew, your former counterpart in Singapore .

But reality is always hard to accept. No matter how, you have to accept the fact that he is regarded the Father of Singapore but you are not regarded the Father of Malaysia; you have to accept the fact that Mr Lee is able to influence the government of Singapore until the day he dies but you have not been able to influence the government from the moment you stepped down as PM.

You must also accept the fact that he is still very popular on the world stage and a leader respected by many but you are not quite. Because of these jealousies, you are starting to accumulate imbalances in yourself that leads you to embark on a series of action to attack your successors.

It is very obvious that you are not happy when your successors are more popular than you. Is there any good of doing that? What is your intention? Can't you take it easy?

During your time, you criticised most of the developed countries especially the Western Countries out of jealousy and after stepping down as PM you criticise every single soul remained in the cabinet for not listening to you. When will you ever stop criticising any people? Can't you respect the decision of others?

Back to your recent blog, is there anything wrong with the Chinese in this country?

Did they seize or rob the money away from the Malays?

Did they have the ability to come out with any policies to marginalise the Malays?

Did they dominate the lawmaking process of this country?

Did they formulate the economy policies in this country?

Did they control the government departments in this country?

Did they control the state owned companies and GLC in this country?

Did they control the country's largest oil companies and banks?

You know the answer, right?

Malays are the one who dominate the the lawmaking process of this country;

Malays are the one that formulate the economy policies in this country that favours the Malays.

Malays are the ones that control the government departments, state owned companies and GLC.

Malays are the one**s** th**at **control the funds in this country.

Malays are also the ones that control the largest oil companies and banking industry in this country.

With all these rights enjoyed by the Malays, what else do you want the Chinese to do?

*Surrender their houses and savings and their wealth that they earned with their hard work to the Malays? Or ask all the Chinese to renounce their citizenship and go back to China ?

Have you ever thought of the fact after 30 years of implementing NEP, why it does not achieve the desired result? Or it does achieve but being denied.

Under the NEP there are a series of policies that favors the Malays. If with all these policies, it still does not give the Malays what they want, what else do you want the Chinese to do? Is the Chinese to be blamed because they are too hard working? Or the Malays to be blamed because they do not treasure the opportunities have given?

You know very well the NEP has been misused and it only benefits the cronies... So if you have designed NEP to only benefits the cronies, please don't say it is the problem of Chinese that NEP does not achieve its result. It has nothing to do with the Chinese but NEP and the Malay themselves.

This is a globalised world, Chinese and Malays should not be fighting against each other because Malaysia is competing with other countries. China used to be backward and lagging behind Malaysia but now they have caught up and have even surpassed Malaysia . Can we ask them to slow down their development? If they refuse to listen, can we make a complaint to the United Nations that China is developing too fast and this is very unfair to Malaysia , which adapts a more passive approach? Who gives you the right to prevent others from progressing?

Who do you think you are? This is a flat world (Obviously Tun did not read the book named "The World is Flat"). Don't be so narrow minded to only focus on the Chinese or Malay in Malaysia . We should now look at the world as a flat world. If Malaysia does not progress, no matter we are Malays or Chinese, we would be extinct one day!

Have a God-blessed day.

Teoh Beng Hock Letter!

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Electricity Tariffs Will Be Raised As The Government Looks To Cut Subsidies On Fuel Prices

Electricity tariffs is about to raise again without solid reason!

News from "Malaysia Inside"
Electricity tariffs will be raised as the government looks to cut subsidies on fuel prices, a newspaper reported today, quoting a minister.“Fuel price movements are the main factors for the electricity tariff revision,” Energy Minister Peter Chin was quoted as saying in the Business Times newspaper. Global oil prices recently dropped to below US$60 (RM212) per barrel, after reaching a dizzying height of US$147 (RM520) last year.

He did not say when the increase in tariffs would take place. Much of the electricity generated in Malaysia uses natural gas subsidized by the government. National power company Tenaga Nasional had submitted a proposal for a tariff review to the government at the end of April.

The review in electricity tariffs was due this month but was postponed.

This is the quarterly results for TNB:-












base on 2nd Quarter the net profit is 674.6 million and now still want to raise electricity. Malaysia really "Apa Pun Boleh" just after the election on Kelantan electricity and transport raise price.

Malaysia Set For U-Shaped Recovery?

The global economy is not quite out of the woods, but the good news is the worst is over. Backdrop of improving global economic data, Asia is expected to recover faster than the industrialized world.
They are some research house project a V-shaped recovery for Asia and I think V-shaped recovery likely to happen on China and India but for Malaysia, U-shaped is likely to happen after China and India recovery from crisis.

China and Singapore are among the top trading partners of Malaysia, the expansion in their PMI (Purchasing Managers Index) will spur demand for Malaysia's manufactured goods so with a V-shaped recovery from their, Malaysia will recover U-shaped. Be that as it may, domestic demand will still be the driver of Malaysia's gross domestic product (GDP) growth in the months ahead. Malaysia economy is expected to grow +1.3% in 4Q2009, but not enough to prevent the economy from contracting -3% this year before growing at +3.5% in 2010 said by CIMB

Going forward, the performance of the Malaysia economy hinges on political stability and a continued pace of economic reform to make the country competitive and attractive location for foreign investors. History has shown that economies that slip into a deep recession will rebound just as sharply as was the case in 1998 when the Malaysia economy contracted 8% and bounced back 5.4% in 1999, with the last quarter growing 10.6% y-o-y.

U-shaped recovery can still happen in Malaysia for several factors

1. Asia now has China and India ( and to a certain extent Indonesia) to offset slackening export demand from Europe and US.
2. Asian governments have all put in place aggressive stimulus packages which are beginning to take effect.
3. Asian policymakers have begun to focus on boosting domestic demand since 1998 and last but not least, the developed world is already showing signs of recovery, thanks to aggressive fiscal stimulus actions.
   

Influenza A (H1N1) as a Pandemic

The World Health Organization has declared an influenza pandemic on June 11 and called on governments to prepare for a long-term battle against an unstoppable flu virus, according to Reuters.

The United Nations agency raised its pandemic flu alert to phase 6 on a six-point scale, indicating the first influenza pandemic since 1968 is under way.

"With today's announcement, WHO moves from an emergency to a longer-term response. Based on past experience, this pandemic will be with us for some months, if not years, to come," WHO Director-General Dr Margaret Chan said in a letter to staff, a copy of which was obtained by Reuters.

Foreigners Invester Your Enemy Or Friend?

At the beginning of KLCI bull run, foreign invester are slowly buy in into Asia share market due to they know the USD value will drop. During end of March, USD vs Malaysia Ringgit still strong and we hear news saiding that USD value will hits RM3.60 per US doller and by that time foreign invester had stared change their asset out from USD into Asia.

We had see KLCI broken 1050 level is mainlly due to foreign fund invest in into Malaysia. Most of the fund did not invest much in buying property or set up businuss they only buy community, bound and share. I think they did not plan really want to invest into Malaysia, they just need a place to put they money in so that unaffected by USD devalue.

In addition, Malaysia allow foreigners can hold 70% of Malaysia finance firms also is a plus to Malaysia economic. Share market have countinues bull run for 50 tradings days and is far due to correction and this time Asia market was unaffected by US bad economic news especsially General Motors Corp (GM) bankruptcy news.



I think as long USD value is moving south, KLCI will countinues in bull run untill US economic stable down. We had see how share market drop from sky hight and how share market bull run like never ending story are all due to foreigne fund. They are the market mover, if you know they move sure you will found Gold in share market.

Foreigners fund is a double side sword that will been your enemy or friend, but for now they is ours frinds.

H1N1 Is Here In Malaysia!

H1N1 just hits Malaysia, it may affect share price next week :-

KUALA LUMPUR, May 15 — Malaysia has reported its first influenza A(H1N1) case involving a student who returned from the United States two days ago.

This was confirmed by Health Minister Datuk Seri Liow Tiong Lai today.

“The student is now quarantined at the Sungai Buloh Hospital,” he told Bernama from London.

“The student returned to Malaysia on May 13 and the next day, he sought treatment when he felt unwell. The test confirmed that he has the H1N1 virus.”

Liow, enroute to Geneva, Switzerland to attend the World Health Organisation (WHO) General Assembly, was on transit in London.

He said health personnel were in the midst of tracking down all passengers on the student's flight and those who had come into contact with him since his return.

“This is urgent and all have to work together to prevent the spread of the disease in this country. We have initiated various preventive measures and the health department is working hard on the ground,” he said.

Liow also advised the public to be on high alert and immediately seek treatment if they feel unwell.

“The details of this first case will be given by the Health Ministry at a press conference at 4pm today,” he added. — Bernama

New from Malaysiainsider

KLCI Index Has Move Sideways For 5 Months

KLCI index has move sideways for 5 months and up down in between 850 to 890. Today is the end of 1Q2009 and the crisis look like not yet bottom and Malaysia politic still hot.

Till now we still hear worker loss their job and also the wost worker advice to take leave without pay ( company did not want to pay VSS ). It show the economic is in bad condition and likely to go more worse in going 2Q2009.

Now UNMO election had end and the money already pay by using share like KNM. KNM share had hit RM0.45 from RM0.32 before UNMO election after that drop back to RM0.38 and I think it will drop more till KNM unlisted from KLCI. I had sale all my KNM share during this pay day.

After Najib become PM KLCI likely to drop to new low due to no point to supported the KLCI. Now he need to supported the KLCI above 850 because any big drop in KLCI the bring negetive effect to him, but when he become PM all his done.

I had sale out all my share and I think this is the Golden time to jump in into Gold market because now the gold price is low.

36,000 employees CIMB to consider taking up to six months of unpaid leave

Malaysian financial services group CIMB has asked its 36,000 employees to consider taking up to six months of unpaid leave as it aims to cut costs in the global economic slowdown, a top official said on Monday.

Thing is not getting good.

RM60b Stimulus Package Only A Number

The government has trimmed GDP expectations to -1% to 1% for 2009 and RM60 billion stimulus package are list below:-

1. RM15 billion in fiscal injection
2. RM25 billion in guarantee funds
3. RM10 billion in equity investment
4. RM7 billion for private finance initiative and off-budget projects
5. RM 3 billion in tax initiatives

only RM15 billion flow to fiscal injection that will help us and hopefully this money will fully use to help us. The 1st stimulus package RM7.1 billion for us really did not feel anything.

Early of the year ValueCap get RM5 billion from EPF ( untill now still no dividend from EPF) to invest into equity and I think all the fund is used and now another RM10 billion will flow in. This move will benefit some people who know with share will be buy and sure we will not benefited on it because we are not member.

This package really mean the goverment is no money and this is the true because not tax cut or direct cost cut into ours daily life, mostly are only number.

Malaysia situation is bad in addition ours goverment is no money so we hope the best for this year will end well.

RM60 billion mini-budget a bigger and better stimulus plan?

Here is the mini-budget I read in the edge:-

The RM60 billion mini-budget tabled in Parliament on Tuesday is by far a better and more comprehensive package than the first RM7 billion plan that was announced last November.

But then again, the economic environment today has taken a turn for the worst compared to a few months ago, and there is now recognition that despite strong fundamentals, Malaysia will not escape the impact of global recession.

Tough times therefore call for tough measures. Thus, the second plan contains measures that will tackle the key problems facing the economy – rising unemployment in the manufacturing sector, difficulty in accessing funds by small- and medium scale enterprises, a squeeze on corporate earnings and waning consumer confidence.

The strategy is two-pronged – measures are aimed at tackling the immediate problems facing the economy to prevent a deep recession, as well as at addressing the longer-term structural issues facing the economy.

However, given the severity of the global economic downturn, billed as the Great Recession by the International Monetary Fund, it is not a certainty that the two packages combined will be effective enough to prevent the domestic economy from sliding into a recession this year and enable a quick recovery in 2010.

In fact, Deputy Prime Minister and Finance Minister Datuk Seri Najib Razak, when tabling the mini-budget, said that with the fiscal boost, economic growth this year is projected at between minus 1% and 1%. In effect, this means Malaysia is in real danger of falling into a recession.

The silver lining, however, is that with the latest fiscal stimulus, the trough will not as deep as originally expected.

Prior to the announcement of the mini-budget, market consensus was the domestic economy would likely contract by between 3% and 4% this year, before recovering to grow by between 2% and 3% next year.

While RM60 billion seemed like a huge amount at first glance, at almost 9% of Malaysia’s Gross Domestic Product (GDP), the actual direct fiscal stimulus is just RM15 billion, a sum that will be spent over two years – RM10 billion this year and RM5 billion in 2010.

Of the remainder, RM25 billion will be in guarantee funds, RM10 billion directed towards equity investments, RM7 billion in private finance initiative and off-budget projects and RM3 billion in tax incentives.

Certainly, we laud the measures, such as encouraging companies to employ retrenched workers by giving them tax incentives, the issuance of another RM5 billion of savings bonds, allowing a deferment of one year the repayment of housing loans by the retrenched, as well as incentives to buy homes and cars.

However, economists generally agree that the mini-budget, as a stimulus plan, seemed to lack a “big bang” impact. At best, it will help shore up short-term confidence and prevent the economy from sliding into a deep recession. But like it or not, Malaysians must still brace themselves for a recession in 2009.

Given that the recession is now a global phenomenon, what the local economy needs immediately is a big boost to domestic spending, and the mini-budget does not appear to have addressed this issue adequately.

This is especially with regard to putting more money into the rakyat’s pockets to immediately boost consumer spending. The effect of some of the tax incentives, for example, will not be felt until early next year.

The need to focus on domestic demand is all the more important and urgent in view of the fact that the economic environment, both globally and domestically, continues to deteriorate. The end, at this point in time, is still nowhere in sight.

It must be noted that not all the RM60 billion will be translated into multiplier effects during the two years of the plan. Take the RM25 billion in guarantee funds. These are not cash injections but just a guarantee to enable companies, especially the small and medium scale enterprises (SMEs), access to funds.

For the SMEs, the biggest problem is the collapse in the export sector. Most of them are involved in the export sector supply chain. If there is no demand for exports at the end of the supply chain, SMEs will still be faced with an untenable situation inevitably. Having funds but no demand will be the eventual dilemma that must be dealt with, preferably earlier rather than later.

The government may decide to err on the side of caution when it comes to fiscal spending, given budget deficit constraints. At 7.6% of GDP, the deficit is among the highest in recent history. Still, given the severity of the economic crisis, the deficit is no longer a priority concern.

Having said that, the just-announced mini-budget is a step in the right direction. The toughest time for the economy may manifest between May and July, and depending on how much worse things can get, the government may need to come up with further pump-priming measures. The good thing is, there are still some bullets left in the government’s arsenal, insofar as fiscal and monetary policies are concerned.

Did the budget will help us come out from this crisis? I not think so.

Who Is ex-boyfriend of YB. Elizabeth Wong

So Hilmi Malex, 32, was a well good looking guy. He likes to wear tight t-shirt where mostly most of girls like to look at with all the muscles. Even his father also admits that Hilmi ex-girlfriend was YB. Elizabeth Wong.

So when relationship has turned sour and things cannot be rescue anymore bad thing happen, so good looking guy sometime in their heart is not so good and back stap ex-girlfriend for money.

YB Elizabeth Wong can really perform her duty but in Malaysia, when you do your duty well someone will pull you down especially from who always No Action Talk Only (NATO) party. Like Datuk Seri Chua Soi Lek also a vary hard working minister, also become a victim of this No Action Talk Only (NATO) party.

Situation like having sex or semi nuked at your own house is a vary normal situation if you ask me and dun tell me all Malaysia minister did not semi nuked at home before or having sex at home.It's vary sad to see all this good hard working leader resign because of this because of this scandal in politics but someone having sex and boom people still walking around without resign.

Perak Crisis Vote For What

Malaysia have Independent for 52 year and we as a Malaysian have come out to vote for number of time to select the government we believe can help us to a better life. But now we Vote For What? The person we vote can use ours believe to jump in and out to become super rich and do nothing.

If Sultan can select who become the state government, for what we so hard to come out to vote? When economic in crisis hit us BN do nothing to help ( only help they member ) but in this case so fast can take action to select and form the state government.

All this political drama happen in Malaysia in middle of economic crisis did not help to improve ours economic, all country in the world thinking how to help their economic and how to help they people go through this crisis but in Malaysia we need to work extra hard to live and those who do nothing become super rich just doing jump in jump out.

Just did not know how Malaysia economic will come out from this crisis.

KLCI Bounds Up Due To ValueCap RM5 billion From EPF?

We may forgot ValueCap is getting the RM5 billion from EPF ( Ours money ) before 1Q09. The KLCI bounds up may due to ValueCap buy up the share value. Someone will be super rich if they know which share will be push up by the RM5 billion from EPF.

Exp if someone buy in IOICORP at Rm2.30 end of Oct 2008 with 100,000 unit equal to RM 230K and now sale at RM 4.40 the profile will be RM 210K. Almost 100% profit and sure they are vary happy with the bonus. This only 100K unit how about 1 million unit? This money sure enought for any election campain fee.

Hopefully this RM5 billion will be use to help Malaysia economic.

Plantation Sector In Red Alert

CPO price stay weak at RM 1,520/MT till next year. Current record inventory of 2.1m MT in Malaysia to continue to rise as Chinese import volumes weaken and slower GDP growth in Asia become more apparent.

Early of the year 2007, we had see a lot of plantation company invest land to product more palm oil and now the supply is over causing inventory will continue to rise till 2010. All plantation stock price may drop to vary low level in this coming months and now if you holding plantation stock either cut loss now or hold for 3 year till end of year 2010.

Plantation sector is in red alert, I think now is not the time to jump in into plantation sector because now is far from bottom yet.

Malaysians are getting tired and even resentful of the country's endless politicking

Many Malaysians are getting tired and even resentful of the country's endless politicking. They are not used to such a drawn-out period of political uncertainty. They are familiar with bouts of intense political horse-trading — in the run-up to Umno elections, say — but these generally have been followed by the real business of governance.

Malaysians feel they took a decision back in March — for better or for worse — and now they want the political class to focus on the challenges of administration. No one appreciates watching as one side scores points off another.

Indeed, the anxiety over the economy has meant that public debate over matters of race and religion can and will assume a more “heated” quality.

Certainly, the mainstream Malay-language media and Umno have managed to make many in the community increasingly uneasy about their future.

At the same time, the middle classes, especially the Malay middle classes, are beginning to realise after the fatwa issued against yoga that there are no political parties out there to represent their interests. Moderate Malays have been short-changed by recent political developments. Their constitutional rights have been forgotten in the name of religious purity.

Still, the greatest scorn seems to be reserved for the politicians who can't resist in-fighting. The squabbling between Pas and the DAP — both components of the opposition alliance Pakatan Rakyat — infuriates everyone. Malaysians understand the deeply rooted structural differences between the two but right now they don't really care.

Thankfully, PR leader Datuk Seri Anwar Ibrahim has at last begun to realise that his most important KPI (Key Performance Indicator) isn't taking power at the federal level but dealing with disputes within his fractious coalition. Malaysians want him to achieve better administration in the five states held by the opposition. They are not interested in his sense of “manifest destiny”. The want results.

Anwar must face up to reality: relatively minor conflicts within the opposition alliance, whether over the sale of alcohol in Selangor or Bumiputera quotas in the Kedah property market, can shape public perceptions of his coalition and of him. If he wishes to be prime minister one day, he will have to learn to focus on the things that matter to ordinary Malaysians. Delivery is paramount. As the Nike ad put it: “Just do it.”

The public exasperation with Pakatan Rakyat should be benefiting the ruling Barisan Nasional. However, long drawn-out power struggles within virtually all of BN's component parties — most notably Umno — have meant that it is unable to benefit from PR's troubles.

Even Barisan leaders I have come across seem to be aware of their party's impending demise. Indeed, it's almost as if they're passengers on a runaway train that they're unable to stop. Money politics is the “kryptonite” factor that makes the whole situation so uncontrollable.

But once again, Malaysians are sick and tired of hearing of “money politics”. They want action, not hand-wringing. If “money politics” is a scourge, then root it out — that's their attitude. Charge the key perpetrators and shock the rest of the jokers into submission. There's a Chinese saying: “You must slaughter the chickens to frighten the monkeys.” At this juncture, most Malaysians would agree with that principle.

Curiously, United States President-elect Barack Obama hasn't been making things any easier for Malaysia's premier-in-waiting Datuk Seri Najib Razak. Obama remains a transformational figure even while doing something as prosaic as planning the composition of his administration. His focus on talent has been breathtaking. He has been willing to take on board former rivals, such as Hillary Clinton, as well as Republicans such as Defence Secretary Robert Gates. His emphasis on ability makes Umno's petty politicking look pathetic.

In times of uncertainty, the people want a leader who can unite and inject hope and direction into the national debate. Ladies and gentlemen of the Malaysian political establishment: Malaysians want action, not politicking. And they want leaders who can tell the difference between the two.

2008 Q3 EPF’s investment income down 60.4%

The Employees Provident Fund (EPF) today announced that its unaudited investment income in the third quarter fell 60.4 per cent to RM2.06 billion from RM5.19 billion in the second quarter this year.

The income was also lower than RM4.25 billion in the third quarter of 2007.

The drop was mainly because of the fall in income from equities to RM1.26 billion compared to RM2.54 billion in the second quarter, said EPF in a statement.

EPF also made allowances amounting to RM2.29 billion for diminution in value of equity investments due to deterioration in market value.

The pension fund invested RM77.68 billion of its assets in equities with the bulk of it in trade and services (38 per cent), finance sector (33.9 per cent) and equity (8.5 per cent).

EPF said its income from Malaysian Government Securities (MGS) and loans and bonds posted higher returns compared to the second quarter.

In the third quarter, EPF’s returns from loan and bonds increased 3.1 per cent to RM1.71 billion while the returns from MGS rose 1.4 per cent to RM1.21 billion.

EPF invested RM102.37 billion in MGS, RM132.6 billion in loans and bonds, RM17.94 billion in money market instruments and RM1.82 billion in properties.

Its income from money market instruments in the third quarter fell to RM142.25 million from RM191.46 million in the second quarter while returns from properties fell to RM21.53 million from RM22.66 million previously.

EPF chief executive officer Datuk Azlan Zainol said the outlook in the fourth quarter is likely to reflect the full-scale impact of the global meltdown, although there is still hope for the Malaysian equity market to bounce back due to the country’s competitive edge.

from Malaysia Insider

If EPF with all the expert can income down 60.4%, what will be the loss of ValueCap?

A Joke

Question: Which is the only country insulated from the global economic turmoil?
Answer: Malaysia.

This joke has been making the rounds in corporate offices, at dinner tables and in the living rooms across the country as Malaysians and foreign investors wonder whether the feel good statistics trotted out in the last few weeks suggests a government in denial or a government with a cavalier understanding of the global meltdown.

Neither it seems, checks by The Malaysian Insider show. What you have are planners who worry that people can talk themselves into the worst outcomes during an economic slowdown if confidence is allowed to ebb.

What you have are government officials crunching on numbers and scenarios and anticipating the impact of the recession in the United States, UK and Japan on the level of unemployment, foreign direct investment and even the crime situation.

A member of the Economic Council told The Malaysian Insider: “We are not in denial, the fact is that we are in a stronger position than most countries and we need to tell Malaysians that. But things could get bad.’’

How bad? The picture on Main Street is not pretty. At the height of the Asian Financial Crisis, some 80,000 Malaysians were made jobless. The early indications are that the retrenchments may not reach those numbers, though there has been a spike in the last couple of months.

Already there is anecdotal evidence that several factories are laying off workers as a result of depressed demand for their goods. The government expects the number of laid off workers to hover around 20,000 for the year but given that the full brunt of the economic slowdown has not been felt yet, this number could double or triple next year.

Government officials told the Malaysian Insider that there are plans to retrain those retrenched and even provide them with a monthly allowance.

In 1998, retrenched workers were given RM500 a month. The idea is to put money into people’s wallet and encourage them to keep on spending. Finance Minister Datuk Seri Najib Razak said yesterday that the government could unveil another stimulus package.

It is understood that change will be the only constant in the next 12 months.

The Economic Council – comprising ministers, senior government officials and corporate captains – believe that Malaysia needs to respond not only to the worsening global economic situation but also to incentive and stimulus packages unveiled by neighbouring countries.

A council member from the private sector explained: “What we did during the Asian Financial Crisis was defensive in nature, we had to protect our market and jobs. But this time, there is a will and need to go beyond that; we need to open up our economy more, improve the processes.

“We cannot afford to lag further behind Singapore and Hong Kong and lose out to Vietnam and Indonesia.’’

There has always been a gap between plan and action in Malaysia, mainly because of the sensitive issues of the New Economic Policy and bumiputera equity. Still, government officials said that a paper to liberalise certain sectors of the services industry will be tabled before the Cabinet soon.

Also being discussed is a more liberal policy of issuing work permits to skilled foreigners.

Still, the move to open up and liberalise and ensure that Malaysia does not end up a laggard when the global economic situation improves is not likely to be without challenges. For example, there is resistance to completely abolishing the Foreign Investment Committee, a body which approves property purchases and other investments by foreigners.

A senior Umno minister told several businessmen recently: “The FIC has no place in Malaysia. It is a waste of time. But if I said this publicly I would be hammered by Umno politicians.’’

So he has stayed silent. Meanwhile, the debate on the future of the FIC continues in the Economic Council.

“Nothing is sacred in the council. We are prepared to confront any issue but we also know that all our plans will be useless if there is a severe confidence deficit in Malaysia. We cannot afford that and we cannot afford having people to stop spending," said the council member.

Government has been effectively collecting taxes instead on petrol consumption

Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad revealed today the government has stopped subsidising petrol since Nov 1 and has been effectively collecting taxes instead on petrol consumption.

Speaking to reporters in Parliament, he explained that even after the 15-sen drop today, which saw RON97 petrol dropping to RM2 per litre, and RON92 and diesel down to RM1.90, the government was no longer subsidising petrol at the pumps.

"Even if prices return to RM1.92, we will still have a bit of surplus," he said, adding that subsidies had disappeared once the global price of oil had dipped under US$65 per barrel.

Current prices are hovering at US$55 per barrel.

As oil companies take a 19-sen cut and fuel station operators take 12 sen, it can be inferred that the cost price of RON97 petrol is currently below RM1.61 if the government can still generate income at RM1.92.

Shahrir explained that the difference between petrol pump prices and the cost plus commission for the companies and operators was being returned to the government effectively as a form of tax.

This gels with the 2009 Budget winding-up speech by Finance Minister Datuk Seri Najib Razak where he claimed a projected RM7 billion savings in fuel subsidies will be utilised to stimulate the troubled economy.

The statement was puzzling as the government had earlier said it would maintain a 30-sen fuel subsidy to keep pump prices below market prices.

Shahrir also projected that with RM21 billion budgeted for fuel subsidies in 2009 and subsidies for 2007, when prices had averaged US$65 per barrel, amounting to RM8.8 billion, savings from fuel subsidies would be far more than RM7 billion.

"If crude oil stays under US$60 per barrel, I am expecting at least RM10 billion," he said.

He also added that subsidies for diesel and natural gas are still in place.

Shahrir, however, explained that this did not mean that the people were not being helped by the government.

"We are still giving the RM625 road tax rebate for cars and RM150 for motorbikes that goes straight into your pocket," he said, referring to the rebate announced when RON97 shot up to RM2.70.

"So the rebate is for when the people suffered for about three months," he said.

The Johor Baru MP had called a press conference to announce that a total cost of RM21.4 billion had been incurred by the government up to October this year due to tax exemptions and subsidies for fuel against RM16.2 billion last year.

This, however, is without tax exemption figures for October 2008.

He also said that government would consider a floor price for fuel.