Economics | altfa's Blog

Archive for the ‘Economics’ Category

Malaysia “top-down” reforms set to disappoint

September 14, 2010

Najib to unveil Part 2 of NEM next month

(Reuters) – Malaysia’s plans to revitalise investment by backing national champions and ending race-based policies may sound ambitious, but the details are hazy and real economic reform will face formidable obstacles.

The government starts public consultations this month on a new round of reforms, but there is growing resistance from voters and disappointment from investors over measures taken so far.

A government think tank has identified a dozen growth industries such as oil and gas, biotechnology and Islamic finance to focus on in a drive to double Malaysia’s income per capita and propel it into the ranks of “developed nations” by 2020.

Prime Minister Najib Razak’s record on reform is patchy — he shied away from big subsidy cuts and reversed tack on race-based preferential equity ownership rules for the majority ethnic Malay population under pressure from activists.

“Earlier optimism that Najib will be able, and will be committed, to carrying out his plans for reforms has been replaced by resignation that Malaysia will not change course quite so quickly or easily,” said Southeast Asia political risk analyst David Kiu.

Najib took office last year and promised investor forums that on reforms, he would “execute or be executed”, after the National Front coalition that has now ruled this Southeast Asian country for 53 years stumbled to its worst ever election results in 2008.

In the past decade Malaysia has seen its dominant position as an investment destination in Southeast Asia crumble, its productivity gains lag and a worsening of its education rankings which mean it is less well equipped to meet its growth goals.

A survey last week by the World Economic Forum showed Malaysia slipped two places in its global competitiveness rankings to 26th spot out of 139 countries while neighbouring Indonesia surged 10 places to 44th spot. The quality of Malaysia’s institutions, ranked 17th by the WEF five years ago, has plunged to 42nd place since then.

Under its “Economic Transformation Plan” to be unveiled this month, Malaysia’s government wants to galvanise 2.2 trillion ringgit ($706.7 billion) in investments over the 10 years to 2020 of which 92 percent will come from the private sector.

That would be a big leap from the 535 billion the private sector has invested over the past decade, and few analysts expect detailed plans to be unveiled on how to boost investment.

Although hot money has flowed into the Malaysian bond market this year, reversing outflows in 2008 and 2009 and pushing the ringgit currency to 13 year highs against the dollar, Malaysia has slid off the investment map for many.

Foreign ownership of the stock exchange stands at just 21.2 percent of market capitalisation, down from 26.2 percent in 2007.

Many Malaysian companies like leading bank CIMB and telco Axiata are being wowed by the prospects of faster growth in countries like Indonesia and want to become major regional players, so they are exporting capital.

That means government-linked companies (GLCs) will lead the charge to invest more at home, said Wan Saiful Wan Jan of the Institute for Democracy and Economic Affairs think tank:

“They cannot talk about opening up our markets and at the same time give more for GLCs to do to meddle in our economy.”

MORE VOCAL RESISTANCE TO REFORMS?

Although Najib has only been in power since April 2009, he may soon have to shift to policies that will shore up his political base. Elections are due by 2013 and are likely to be called earlier.

His coalition of 12 parties, constructed along racial lines to reflect the Malay, Chinese and Indian populations as well as the indigenous people on Borneo island, is still fraying.

Najib is under pressure from Malay activists in his own party who fear reforms will erode their privileges as well as from ethnic Chinese coalition leaders whose only hope to win back voters is to be more vocal in promoting their own community.

A Malay pressure group called Perkasa which claims 300,000 members recently lodged a police report against the leader of the coalition’s ethnic Chinese party after he called for the removal of laws guaranteeing Malays and indigenous people 30 percent equity rights in public companies.

There has also been a steady drip of racial posturing in the media during the Muslim fasting month of Ramadan with an opposition ethnic Chinese politician being attacked for visiting a mosque and a Ramadan ad campaign being pulled for having Christmas overtones.

“The incitement of ultra-nationalist feelings is mainly conducted in the Malay media and hence is not so visible to foreign observers but it is a really worrying trend that is taking place under a so-called reformist government,” said Lim Teck Ghee, director of the Centre for Policy Initiatives.

Najib has sought to sidestep some of the blockages to reform by outsourcing the process to advisory bodies, but when it comes to implementation, he will still have to rely on the 1.2 million strong mainly Malay civil service.

The civil service employs one in every 20 Malaysians and Wan Saiful notes many of them are drawn from the constituency that has most to lose from any meaningful reforms:

“They are a force of their own, and they are far too big for the government to ignore.”

Posted in Economics, Politics | Leave a Comment »

Fears about RPK’s safety as attacks on Malaysia Today continue

September 14, 2010

RPK, a two-time ISA detaineenow lives in London

Malaysia Chronicle

It has been nearly a week now but the attacks against Malaysia’s most popular political blog run by the controversial Raja Petra Kamaruddin are continuing unabated, raising eyebrows and concern about his safety and his family’s.

“Why is there such a concerted effort to shut up RPK? What information does he have that is so ‘sensitive’ that some people are willing to spend a fortune to just keep it away from the Malaysian public and the world at large?” PKR strategic director Tian Chua told Malaysia Chronicle.

“It is time to take stock of what is happening at Malaysia Today. There is more than meets the eye. We also feel concern for his safety but we hope RPK will not give up the fight because corruption is the biggest threat now. There is indeed a group of people draining huge sums from Malaysia and the rakyat are going to end up with nothing if the information is kept hidden.”

Sucked dry by unparalleled corruption

With his wife Marina

Indeed, it may be silly and also futile to keep blocking Malaysia Today. Already, there are calls for RPK to start in the interim an online magazine in the style of Sarawak Report to expose all the dirt and corruption of the ruling elite.

The 60-year RPK went to school at the famous Malay College Kuala Kangsar and rubbed shoulders with many of Malaysia’s leading politicians and civil servants. His network of top-level contacts in the government is vast and there is also no shortage of whistle-blowers who send tips to Malaysia Today, which has been around for 10 years now.

In the weeks leading to the attacks, RPK had begun unraveling the financial debacle at national airline MAS, supplying and explaining the details contained in a 7-page report MAS managers had lodged with the Malaysian Anti-Corruption Commission.

And when he began naming the people involved in the RM8 billion in losses racked up by former chairman Tajudin Ramli, it must have raised a huge panic in Prime Minister Najib Razak’s administration.

RPK blew the whistle not only on former premier Mahathir Mohamad but also his successor Abdullah Badawi – whom Malaysians had at one time thought of as ‘Mr Clean’.

Malaysia’s ruling elite – Najib, Mahathir, Abdullah

RPK also exposed Najib’s “new cash cow” – the national railway firm and how the PM may renege on a Letter of Intent granted by the previous administrations to China Railway Engineering Corp and extend a fresh one to China Harbor Engineering Corp. A new deal would of course imply new negotiations and new benefits for Najib. His close ties with corporate bigwig Tan Kay Hock, the boss at Johan Holdings, was also revealed.

The amounts mentioned are enormous but few Malaysians doubt RPK or think he is exaggerating. MAS’ RM8 billion in losses are already on record. The staggering red ink offers a good clue as to why resource-rich Malaysia can face bankruptcy by 2019, and why the government has to go back to the masses for more money by jacking up the prices of consumer essentials.

Tajudin was chairman at MAS from 1994 to 2001. The MAS case is no less shocking than the Port Klang Free Zone financial scandal. PKFZ will be returning to the spotlight soon with several top Umno leaders due to be charged. One of them is believed for be former Selangor Mentri Besar Muhammad Muhammad Taib, with whom RPK had a run-in with in 2007.

MAS’s RM8bil losses: Badawi, Dr M, Daim shielded Tajudin…

Mahathir and Badawi in 2 separate abuse-of-power cases..

Tajudin Ramli back in the spotlight over MAS’ RM8bil losses VIDEO RM8bil losses in MAS, who is protecting Tajudin Ramli… The NEP and the rich Chinaman – time for the Malays to wise up A Saga of Corruption Ignored: Tajudin escapes, not his accusers… Ex-chairman Tajudin counterclaims RM500mil from MAS…

Posted in Economics, Politics | Leave a Comment »

Genting’s will be the first casino in New York, opening in 6 months

September 14, 2010

Artist’s impression of Resorts World New York

NEW YORK (WSJ) – After close to 10 years of often-tortuous planning, New York City’s first casino cleared its final hurdle Monday as state comptroller Thomas DiNapoli approved a contract with one of Asia’s largest gaming companies to develop a gambling parlor at the Aqueduct Racetrack in Queens.

Within six months, if all goes according to plan, Genting Bhd., of Malaysia, will open the doors of a facility that initially will include 1,600 video slot machines and other electronic games. Within 18 months, the casino, which will be known as Resorts World New York, will have 4,525 machines, two restaurants and a skybridge connecting it to the A train’s stop at the Aqueduct.

Genting has promised to invest up to $1.3 billion, including a $380 million upfront payment to the state. “This is one of the most important vendor contracts New York has ever signed,” Mr. DiNapoli said in written statement. “It’s a 30-year license that carries the future of New York’s racing industry on its back.”

Resorts World in Pahang, Malaysia

The casino for now won’t include table games like roulette and blackjack because they’re not allowed under state law. But Genting, which has major operations in Singapore, Malaysia and the U.K., has made it clear that it eventually would like to turn Resorts World into a major destination that will include upscale hotels and entertainment. This is Genting’s first U.S. operation, although its controlling family has been active in American Indian gaming operations at places like Foxwoods Resort Casino in Connecticut.

“We are eager to immediately begin investing, creating jobs, sparking economic activity and bringing New York a one-of-a-kind iconic, entertainment destination,” said K.T. Lim, chairman of Genting in a written statement.

State and local officials have been dreaming of bringing slot machines to Aqueduct ever since the state officials began discussing allowing them at race tracks to boost that sagging industry. But while other racetracks around the state have succeeded in opening casino operations, the Aqueduct effort for years ran into delays, political battles and investigations.

Resorts World at Sentosa, Singapore

The Resorts World casino will be divided into three segments targeting different spending levels. The first-floor gaming area will include a circular bar with shows and entertainment “for the mass market,” according to a plan Genting filed with the state. A second-floor casino will have a “casual elegant style” for higher-tiered loyalty-card gamblers and a VIP casino overlooking the track for high-end players, the proposal states.

“There are plenty of people that have $5,000 to $10,000 bankrolls when they play slot machines,” said Jay Walker, a senior adviser to Genting, in an interview in August.

Lim Kok Thay

Plans also call for a 200-seat Chinese eatery and another “signature” restaurant. For those seeking a quick bite, a 450-seat fast-food promenade will be located on the lower level. An outdoor terrace to be named “Festival Commons” will provide direct access to the racing and other race-track events, according to the proposal. “The planned entry to the facility will be a dramatic, three story entry atrium with a spectacular, digitally controlled water show, penetrating all three floors,” Genting’s proposal stated.

Genting’s late founder

Genting plans to draw on tourists visiting New York as well as local residents who now travel to Atlantic City and Bethlehem, Pa., to gamble. The company also will market Aqueduct as a rest-and-recreation hub for travelers on stopovers at John F. Kennedy International Airport, about five miles away. The casino will provide a shuttle bus service to the airport as well as other locations.

Genting is hoping that the casino will draw larger crowds to the Aqueduct raceway. While the Malaysian company won’t have any direct involvement in the track’s operations, executives are hoping that the casino will lead to an improvement of that facility, which has gotten run down over the years.

“It’s like if you’re building a beautiful mansion and your neighbor has a chicken wire fence,” Mr. Walker said.

Posted in Economics | Leave a Comment »

Will Najib really push through an effective NEM

September 14, 2010

Najib – how reformist will the NEM be?

Dr Chen Man Hin

It will take a liberal New Economic Model and a strong prime minister to push much needed reforms to transform Malaysia into a high-income country with democracy, justice and prosperity for all regardless of race or religion.

The political and economic outlook for the country is critical. We are riddled with multiple problems of corruption, lack of judicial independence, racialism, brain drain, with 40 per cent of households living below the poverty level of RM1,500, and four out of five poor households are Bumiputeras.

All these things are happening even after two years of PM Datuk Seri Najib Razak’s rule since April 2008. His 1 Malaysia and mediocre attempts at reforms have failed.

WORLD RANKINGS OF MALAYSIA

The sorry state of political and economic development is reflected in the world ranking status of Malaysia on areas which indicate whether a society is honest, democratic, transparent, and just.

CORRUPTION: Transparent International Corruption perception — Malaysia is ranked 56 among countries in 2009 having dropped from 47 of 2008 and from 23 in 1995. It indicates that corruption has deteriorated during Najib’s watch, whereas Singapore and Hong Kong are almost corruption free.

JUDICIAL INDEPENDENCE: Malaysia’s world ranking for year 2009-2010 was 52 compared with Thailand 54, Taiwan 49, Singapore 19, Australia 5, Finland 4, Denmark 3, Sweden 2, and New Zealand 1. Low ranking for Malaysia is not surprising, especially as the Sodomy 2 case against Anwar Ibrahim has raised international concern about the integrity of the judiciary in Malaysia.

UNIVERSITY RANKING: This year no university from Malaysia made it to the top 200 world universities list of QS World University Ranking 2010. Last year one Malaysian university, Universiti Malaya, was ranked 180. This year Universiti Malaya was ranked 207.

ACADEMIC RANKING OF WORLD UNIVERSITIES BY SHANGHAI JIAO TONG UNIVERSITY: No university from Malaysia was in the list, which indicates that the academic standards are questionable.

POLICE STATE: It is a fact that the government uses all the institutions — police, judicial, attorney-general and media — to exercise rigid and a repressive controls on the social, economic and political life of the people. The ISA is used to oppress the opposition. Press freedom is muzzled, as seen by the ranking for Malaysia which was 141 out of 196 countries. Which is not unexpected as the government has imposed a tight censorship of all opposition news. The government plans to impose censorship of the Internet, which is gaining popularity with the people.

FOREIGN DIRECT INVESTMENTS (FDI): The World Bank has released figures which showed that for 2009 there was an 81 per cent fall in FDI into Malaysia from US$7.32 billion to US$1.38 billion. FDI into Thailand and Indonesia has overtaken FDI into Malaysia, which has now joined the ranks of countries like Myanmar, Cambodia, Laos and Timor Leste. These are figures which indicate that investors, both local and foreign, have lost confidence and prefer to put their money in Indonesia and Thailand.

Poor global rankings of Malaysia are an indictment of the Najib regime, which under the cloak of 1 Malaysia is actually practising the politics of race, corruption, cronyism and rent seeking. If the same policies are continued, then inexorably, Malaysia will join the ranks of failed states like banana republics Myanmar and Zimbabwe.

THE ONE HOPE

Follow the advice and recommendations of the World Bank and IMF which have recommended that Najib follow free and liberal market policies. There has to be a structural reform, which means no NEP regulations like 30 per cent Bumiputera equity and cronyism or rent seeking. A culture of competitiveness and meritocracy must be practised.

At the same time, the reforms must be inclusive to look after the interest of the poor — Bumiputeras and others. A new type of affirmative policy must be practised where help is given according to needs and merit. This affirmation action should not interfere with the mainstream liberal free market economy, or the main economy will stagnate or collapse as it did the 40 years of NEP rule from 1971 to 2010.

The fate of Malaysia is now in the hands of the prime minister. The whole country is now watching the next move of the prime minister. Will he follow the NEM policies as endorsed by World Bank and IMF? Or will he wilt under the pressure of Perkasa?

“To be or not to be, that is the question.” – Hamlet. The whole country awaits.

(Dr Chen Man Hin is the life adviser of the DAP)

Posted in Economics, Politics | Leave a Comment »

Chinese now keen to enter civil service due to better salaries

September 13, 2010

But is ‘gaji’ the real determinant?

KUALA LUMPUR (Bernama) — The Chinese community is now keener to apply for government posts compared to previously following some improvement in salaries in the civil service.

Federation of Chinese Associations of Malaysia (Hua Zong) president Tan Sri Pheng Yin Huah attributed this to higher basic salary which attracted those applying to join the civil service.

“The starting salary in the civil service is even higher compared to the private sector in certain industries. This is totally different compared to last time,” he said today.

For example, Pheng said about 450 Chinese job-seekers had applied for government posts recently under the joint campaign by Public Service Commission (PSC) and Hua Zong to increase the number of non-Malay civil servants.

They had applied for an unspecified number of positions under 27 categories, mainly in the medical, healthcare service, immigration, foreign missions and IT and administrative sections of the various ministries.

Pheng said he was happy with the keen response to the joint recruitment drive and gave an assurance that the federation would continue to play an active role to help the government in this matter.

“We had done it before with the MACC (Malaysian Anti-Corruption Commission) and recently with the PSC. We also plan to have another session with the Marine police at a later date to get more Chinese to join the police force,” he said.

Based on statistics from the Prime Minister’s Department, the number of applications from the Chinese to join the civil service and their appointments rose by 100 per cent last year compared to 2007.

Minister in the Prime Minister’s Department Tan Sri Dr Koh Tsu Koon said the PSC received 25,789 applications from the Chinese last year. In 2007, it was 12,872.

He said the appointments offered by the PSC to the Chinese during that period also rose by almost 100 per cent — 2,600 appointed as civil servants last year compared to 1,323 in 2007.

As at June this year, statistics show Malaysia has 1.29 million civil servants, with Malays making up 77 per cent, followed by Sabah and Sarawak Bumiputeras (8.7), Chinese (six), Indians (four) and others (4.3).

Posted in Economics, Politics | Leave a Comment »

Malaysian Casino Giant Gets Approval For NY Operation

September 13, 2010

Genting – founded by Lim Goh Tong

NEW YORK (Dow Jones)-Genting Bhd. (3182.KU), the growing Malaysian casino giant, says it received final approval to operate the first gambling parlor in the Queens borough of New York City.

“We are eager to immediately begin investing, creating jobs, sparking economic activity and bringing New York a one-of-a-kind iconic, entertainment destination,” K.T. Lim, chairman of Genting Malaysia Berhad (4715.KU), said in a statement.

State Comptroller Thomas P. DiNapoli labeled the deal “one of the most important vendor contracts New York has ever signed.”

“It’s a 30-year license that carries the future of New York’s racing industry on its back,” he added in a statement.

Lim Kok Thay

While the Aqueduct Race Track operation, Genting’s first in the U.S., will initially be limited to 4,500 slot machines and electronic table games, Genting hopes it will eventually expand into a destination resort that would include upscale hotels and attract international travelers.

The company, which controls casino resorts in Malaysia and Singapore, oil palm plantations and the Norwegian Cruise lines, is hoping Aqueduct will open the gateway to the U.S.’s vast gaming terrain.

Genting is eyeing U.S. gaming opportunities in places like Las Vegas, California and Massachusetts and has plans to possibly spin off at some point its U.S. operation into a separate public company.

Posted in Economics | Leave a Comment »

Dr M against offshore RM trade, wants traders jailed under ISA

September 13, 2010

Mahathir – lock them up under ISA

Malaysia Chronicle

Former Malaysian leader Mahathir Mohamad has warned Prime Minister Najib Razak against allowing the ringgit to be traded offshore, saying that currency traders should instead be locked up and jailed under the country’s draconian Internal Security Act that allows indefinite detention without trial.

“We must be careful and do proper review. US$4 billion is traded each day. What is the benefit to us, we do not see any prosperity from this trading. It does not boost our trade or our businesses. These people should be locked under the ISA. They are the ones responsible for the financial crisis,” Mahathir told reporters during his Hari Raya open house on Sunday.

Najib plays to the gallery

The former premier who ruled Malaysia with a fist of iron from 1981 to 2003 was responsible for the taking the ringgit off the overseas markets in 1998 in a bid to curb the brutal capital flight that followed the Asian financial crisis.

Najib – playing to the gallery or is it for real

Mahathir’s hugely unpopular move caught foreign investors wrong-footed. Unable to exit their investments, they incurred huge losses and have since refused to invest in a serious way in the country other than in short-term portfolio positions.

Although the central Bank Negara has recently allowed the settlement of offshore trade in goods and services in the ringgit, the feedback from the business community is that until the ringgit is fully trade-able both onshore and offshore, it would hamper’s Malaysia economic development.

On Saturday, in an interview with CNBC, Najib had said his government may consider allowing the ringgit to trade offshore. But few market practitioners were convinced he would actually de-regulate the currency any time soon.

“We are open to it. We are quite adaptive and if we think it’s going to help us and the economy, we would review the situation,” Najib said.

The Malaysian premier also said the ringgit, which traded at a 13-year high of 3.11 to the dollar on September 6, reflects the country’s economic fundamentals.

“We are monitoring it in terms of both our fiscal and monetary policy to make sure that the ringgit reflects the fundamentals of the economy and at the moment, we believe it does and the stronger ringgit doesn’t seem to have a negative impact on our exports,” he added.

The ringgit

Mahathir is wrong

The strengthening ringgit comes on the back of strong economic growth in the first two quarters and a series of interest rate hikes by the central bank.

The Malaysian economy grew by 10.1 percent in the first quarter of the year and by 8.9 percent in the second quarter, with growth expected to exceed six percent in the full year, according to the central bank. Bank Negara also raised the overnight policy rate or OPR by 25 basis points to 2.75 percent in July, the third time this year.

“It is the interest rate rather than the GDP growth that is pushing the ringgit up. The yields on the ringgit have to be decent for traders to want to buy the currency. So we may see interest rates going up which is good for Malaysia because it will reduce speculation on property and also whittle down imported inflation,” said a chief dealer at a large foreign bank.

“But we disagree with Mahathir. We don’t think he is talking sense. It is time he moves with the rest of the world. What happened in 1997 was not due to the currency traders but because the governments themselves carried too much debt and this was due to all their mega-projects.”

Last year, the central banks of China and Malaysia signed a currency swap agreement ease liquidity trouble as they boost the amount of yuan that Malaysian banks can draw on while servicing local companies that use the Chinese currency when trading.

Posted in Economics, Politics | Leave a Comment »

Malaysia’s Bakun dam – a monument to corruption?

September 12, 2010

Submerges an area the size of Singapore

(AFP) – The multi-billion-ringgit Bakun dam in Sarawak, already condemned as a catastrophe for the environment and the tribal people, is now battling suggestions it could become a giant white elephant.

The dam, that will eventually submerge an area the size of Singapore, is finally nearing completion after suffering a series of setbacks and delays since its approval in 1993.

But at the last hurdle the project has stumbled again, with delays in winning the state government’s permission to begin the flooding process and no takers yet on purchasing its hefty 2,400 megawatt output.

With ambitious plans for an undersea cable to feed Bakun’s electricity to the Malaysian peninsula now abandoned, the Sarawak government is the only feasible buyer – leaving it with a very strong hand.

Negotiations not going smoothly

Negotiations with the dam developer Sarawak Hidro Sdn Bhd, a subsidiary of the national finance ministry, have reportedly been tough.

“It’s a case where the owner of the project is naming an asking price that is very different to what the buyer would want,” said Wong Chew Hann, an analyst at Malaysia’s top bank Maybank.

Add caption

“I understand there’s quite a huge mismatch,” she said. “I’m not sure what they’ve incorporated into the pricing, but the cost of the project has gone up so much since it was started.”

As well as the cost of construction, there is the expense of compensating tribal people for their forced relocation from ancestral lands, and suppliers affected by the long delays.

“So the question is, are you going to incorporate all the compensation costs in the tariff price?” said Wong.

With the indigenous people from the Bakun catchment area long since resettled and its valuable timber resources long since felled, the dam has been ready to be flooded since April.

The state government had delayed permission, saying it was still evaluating river levels and the impact on boat transport.

A Sarawak minister reportedly said last week that the necessary permit has been granted, denying both that it had been used as a bargaining chip to lower the tariff and that Sarawak was facing an energy glut.

Not held to ransom

Sarawak Hidro managing director Zulkiflie Osman played down suggestions that he has been held to ransom by the state government.

“Both parties are working together and want it to be settled amicably, with a tariff acceptable to both parties,” he told AFP, adding that he expected to strike a tariff deal before December.

The next of Sarawak’s mega-dams, the Murum, which is being developed by the state government, is due to come on line in 2013 but Osman said he was convinced the state authorities will not bypass the Bakun in favour of its own project.

Alongside the power purchase negotiations, the federal government is also said to be discussing selling the entire Bakun facility – built at a reported cost of RM7.3 billion – to the state government, but pricing and finance problems have emerged.

Star daily reported in July that the federal government was seeking RM8 billion while the state government offer was just RM6 billion.

The Bakun’s output far exceeds existing energy needs in Sarawak, a relatively undeveloped state, and is mostly destined for industrial users such as aluminium smelters, but these are still on the drawing board.

“The main problem is that currently there is no demand for such a big capacity yet, and in order for Sarawak Energy to purchase the dam they would need adequate funding,” said an analyst with a major research house.

“The banks would ask for some kind of feasibility study, and as there is no real demand yet this project risks becoming a white elephant,” said the analyst, who declined to be named.

Newspaper reports have questioned how the federal government can ever hope to recover the huge amount of money it has sunk into the project.

‘Non-starter’

bn supreme council mt meeting sapp sabah issue 190608 taib mahmud

“Marred by too many disagreements, the RM7.3 billion project could very well turn out to be a non-starter,” Star said last month, adding that with both the Bakun and Murum dams online there would be a “very real possibility” of a power glut.

Transparency International has labelled Bakun a “monument of corruption” in Sarawak, a state that has been ruled for three decades by the formidable Chief Minister Taib Mahmud (right).

There has also been fierce criticism over the botched relocation of 15,000 indigenous people, who have made an unhappy transition to life in drab resettlement areas.

Baru Bian (left), chairman of the opposition party Keadilan in Sarawak, said the Bakun project was designed purely to profit cronies, and not planned in the public’s interest.

“The dam is a waste of public funds, it’s not necessary, and what is paramount is that it is disturbing and disrupting the lives of the natives and the environment – the trees and the forests.”

– AFP

Posted in Economics, Politics | Leave a Comment »

Bid intensifies to keep graft documents secret, RPK under attack

September 11, 2010

Mahathir, Najib, Abdullah

Malaysia Chronicle

Malaysia Today is up but still unstable. Only a low-bandwidth version is available, underscoring the determination of the enemies of controversial editor Raja Petra Kamarudiin to gag his popular political blog.

“We are under severe attack,” Raja Petra had told Asia Sentinel. “Looks like someone is spending a lot of money to keep us off the air.”

This is not the first time that RPK’s site has been attacked but perhaps it may be the most virulent assault so far. The site was disabled for nearly 3 days. It may crash again until a more sustainable solution is found.

From airline to railway

Daim – Dr M’s trusted lieutenant

But whoever is behind the move may find it unfruitful and in fact downright counterproductive. More Malaysians know now than three days ago how desperate top Umno leaders are to cover up their corruption.

If the RM8 billion in losses at national airline MAS, implicating former premiers Mahathir Mohamad, Abdullah Badawi and ex-finance minister Daim Zainuddin, are not shocking enough, revelations that Prime Minister Najib Razak had found a “new cash cow” in the national railway firm will surely deliver the knock-out punch.

No wonder then that Malaysia Today is still under attack. RPK has been releasing a series of articles along with copies of official documents that lay bare the financial debacle at MAS and the wheeling and dealing behind the double-track railway project.

National plunder

Indeed, public attention is now starting shift from a recent outburst of racial and religious politicking to cold hard fact and figures as Malaysians demand an answer for their fast-depleting cash reserves.

Raja Petra

Opposition Leader Anwar Ibrahim and his Pakatan Rakyat have already dismissed the latest political brouhaha over the Perkasa-Umno parting of ways as a drama staged to deflect attention from the real problems at the ruling BN coalition.

Two comments that typify the anger and snowballing disgust at the chronic greed of top Umno leaders are listed below.

The emotion behind the words is unsurprising as Malaysians, especially the lower income, have been asked to subsidize the Umno graft. Najib’s own ministers have warned the country will go bankrupt by 2019 if the prices of subsidized essentials are not raised soon to boost government cash flow and cut national debt.

The never-ending and continuous flow of mega-$candal$ just help to confirm Barry Wain’s book that Mahathir alone had squandered RM100 mega-billion$!

Sejarah telah membuktikan bahawa pemimpin yang menyamun harta2 negara tidak akan kekal. Mereka akan dibinasakan Allah SWT didunia lagi. Tunggu dan lihat kemurkaan Allah SWT keatas mereka…InsyaAllah.

Unknown forces block Malaysia Today from huge graft scandal…

The story that got Malaysia Today blocked: MAS-Tajudin-Umno…

Even from Sarawak’s sewers – Taib can dig RM78 million …

Tajudin’s RM500mil suit against MAS a sign of a brokered deal? …
Was RPK’s Malaysia Today hacked because of Tajudin Ramli…

MAS’s RM8bil losses: Badawi, Dr M, Daim shielded Tajudin…

Mahathir and Badawi in 2 separate abuse-of-power cases..

Tajudin Ramli back in the spotlight over MAS’ RM8bil losses
VIDEO RM8bil losses in MAS, who is protecting Tajudin Ramli…
A Saga of Corruption Ignored: Tajudin escapes, not his accusers…
The NEP and the rich Chinaman – time for the Malays to wise up
Ex-chairman Tajudin counterclaims RM500mil from MAS…

Posted in Economics, Politics | Leave a Comment »

Najib’s new cash cow

September 11, 2010

Keretapi Tanah Melayu

Raja Petra Kamarudin

(Malaysia Today) – Tan Kay Hock is the low-profile controlling shareholder of Johan Holdings Berhad, a public-listed investment holding company. He is also the golf buddy of Najib Tun Razak and this relationship has made him hundreds of millions. Kay Hock recently caused ripples in China when he asked the Chinese for RM500 million and told them that RM200 million is for Najib’s family.

How playing golf with the Prime Minister can earn you billions

For about ten years and over three Prime Ministers, the current Prime Minister included, the contract for the double-tracking electric train from Gemas to Johor Bahru has been ding-donging. Despite what was agreed between the leaders of China and the three Prime Ministers, which was later confirmed by the issuance of a Letter of Intent to China Railways Engineering Corporation (CREC), the government is again backtracking.
Najib now wants to award the contract to China Harbour Engineering Co. Ltd. (CHEC) instead, the company that is building the Second Penang Bridge — which shot up from RM1 billion to RM4.5 billion and now to RM22 billion (read more on the matter below).

The man behind this is Tan Kay Hock, Najib’s golf buddy. He is brokering the deal on behalf of CHEC.
The Chinese say that Tan Kay Hock is demanding RM500 million from CHEC and he told them that RM200 million is for Najib’s family. And this is making the Chinese very unhappy because, in China, both the givers as well the receivers of bribes will be sentenced to death with a bullet in the head plus the cost of the bullet is charged to the family of the deceased.

When the Chinese government offered the Malaysian government a loan to construct the Gemas to JB railway they indicated that CREC should be the contractor. CREC is one of the biggest specialist contractors for electric trains while CHEC has not constructed even one kilometer of electric railway (more details below).
A Letter of Intent had already been awarded to CREC. Now the government wants to cancel this Letter of Intent and issue a new Letter of Intent to CHEC. But for the new Letter of Intent to be issued to CHEC they must fork out RM500 million, which Kay Hock claims RM200 million will be paid to the Prime Minister of Malaysia’s family.

This is not only a violation of the terms of the loan from China but CREC is the company with the experience in constructing electric railways, not CHEC, the company already involved in the construction of the Second Penang Bridge. Added to the withdrawal or cancellation of the Letter of Intent to CREC and a new one issued to CHEC, with a RM500 million ‘price tag’ attached, it puts the Chinese government in a dicey spot when the risk would be a bullet in the head for those who approve the payment.

The Chinese are wondering whether it is worth the risk to pay Kay Hock the RM500 million he is demanding. If the Letter of Intent to CREC can be withdrawn after issuing it, what guarantee is there that the new Letter of Intent to CHEC will also not be withdrawn after they pay the RM500 million?

The Chinese are very aware that Vincent Tan also received a Letter of Approval for his gaming licence, signed by the Deputy Minister of Finance. However, after he paid RM170 million ‘under the table’, Najib denied in Parliament that Vincent Tan had been given a gaming licence and subsequently the Letter of Approval was withdrawn.

KTM is being used as Najib’s new cash cow. The EMU coach was a deal involving Rosmah Mansor (Najib’s wife), Mumtaz Jaafar (Saiful Bukhari Azlan’s ‘godmother’) and Cindy (Desmond Lim’s wife). Desmond, in fact, handled the deal where KTM coughed out RM1.4 Billion for coaches that cannot function. According to KTM, the coaches are not even worth RM300 million.

The saga gets more interesting with Najib and Rosmah holidaying in Monaco as guests of Jho Low — who told everyone that the yacht belongs to the Prince of Qatar. It was later revealed that Jho Low rented the yacht for Euro 90,000 per day to allow Najib and Rosmah to rub shoulders with Hollywood Starlets.

That brings us to a very crucial question. Where did Jho Low get that kind of money? Well, you see, after Malaysia Today exposed Deepak Jaikishan — Rosmah’s carpetman cum bagman cum toyboy — she was forced to dump him. So now Jho Low is Rosmah’s new Mister Fixit and Collector of Commissions.
Let us see how the CHEC-Tan Kay Hock saga is played out. Now that the Chinese government knows that we know about the RM500 million deal would they dare still proceed with it? And does Tun Dr Mahathir Mahathir know that Najib has hijacked his pet electric train project?

Mr Tan is said to be a golf buddy of Prime Minister Najib Tun Razak
He is the low-profile controlling shareholder of Johan Holdings, a public-listed investment holding company, and said to be a golf buddy of Najib Tun Razak.

The Financial Times had reported that Tan Sri Tan, 61, was the owner of the 607ha Guiana Island, which is now at the centre of a fraud case brought by the United States authorities against Texan billionaire businessman Allen Stanford. — The Straits Times (Singapore)

Read: The crooked faces of Najib Altantuya’s Cronies and their Related Companies (http://ckcounterpunch.wordpress.com/2009/04/04/the-faces-of-najib-altantuya-cronies-and-their-related-companies/)

***************************************

CREC is the third largest civil construction enterprise in the world, and the Asian and Chinese largest railway, road and tunnel construction contractor. It has a leading position in China’s construction market, and participates in many large-scale infrastructure projects overseas (especially in countries in the Southeast Asia and Africa). Fortune magazine in the United States reported that CREC ranked 342 in the 500 world’s largest enterprises in 2007.
CREC consists of 31 member enterprises including:
– 16 super-large construction enterprises
    * China National Overseas Engineering Corporation
    * China Railway Resources Co., Ltd.
    * China Railway First Group Corporation
    * China Railway Erju Group Corporation (China Railway Second Group Corporation)
    * Third Engineering Group Co. Ltd
    * China Tiesiju Civil Engineering Group Co. Ltd (China Fourth Group Civil Engineering Group Co. Ltd)
    * China Railway Wuju Group Corporation (China Railway Fifth Group Corporation)
    * China Railway Sixth Group Co. Ltd
    * China Railway Seventh Group Co. Ltd
    * China Railway Eighth Civil Engineering Group Corporation
    * China Railway No. 9 Group Co. Ltd
    * China Railway No. 10 Group Corporation
    * China Zhongtie Major Bridge Engineering Group Co. Ltd (China Railway Major Bridge Engineering Group Co. Ltd)
    * China Railway Tunnel Group
    * China Railway Electrification Bureau Co. Ltd
    * China Railway Construction Engineering Group
– 3 large or super large surveying and designing enterprises
    * Second Survey and Design Institute of China Railway
    * China Railway Engineering Consultants Group
    * China Major Bridge Survey and Design Institute
– 3 large R&D enterprises
    * Northwest Research Institute
    * Southwest Research Institute of CREC
    * Engineering Machinery Research and Design Institute
– 5 large manufacturing enterprises
    * China Railway Shanhaiguan Bridge Group Co. Ltd
    * China Railway Turnout Bridge Inc.
    * China Railway Bus. Co. Ltd.
    * Wuhan Engineering Machinery Works of CREC
    * Hengping Trust and Investment Co. Ltd.

Unknown forces block Malaysia Today from huge graft scandal…

The story that got Malaysia Today blocked: MAS-Tajudin-Umno…

Even from Sarawak’s sewers – Taib can dig RM78 million …

Tajudin’s RM500mil suit against MAS a sign of a brokered deal? …
Was RPK’s Malaysia Today hacked because of Tajudin Ramli…

MAS’s RM8bil losses: Badawi, Dr M, Daim shielded Tajudin…

Mahathir and Badawi in 2 separate abuse-of-power cases..

Posted in Economics, Politics | Leave a Comment »

altfa's Blog

Archive for the ‘Economics’ Category

Malaysia “top-down” reforms set to disappoint

Fears about RPK’s safety as attacks on Malaysia Today continue

Genting’s will be the first casino in New York, opening in 6 months

Will Najib really push through an effective NEM

Chinese now keen to enter civil service due to better salaries

Malaysian Casino Giant Gets Approval For NY Operation

Dr M against offshore RM trade, wants traders jailed under ISA

Malaysia’s Bakun dam – a monument to corruption?

Bid intensifies to keep graft documents secret, RPK under attack

Najib’s new cash cow

Pages

Archives

Categories