Posts Tagged ‘Economy’

2010 1st quarter economic growth more than 10 percent!

May 6th, 2010
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A very positive news indeed.  Can say economy is picking up, so expect increases in prices soon. BTW, our national imports also increased 45.3% in March,

The country’s economy is likely to register growth of more than 10% in the first three months of the year – an achievement not seen in the last 10 years.

The latest economic indicators show a positive trend. Exports in March grew by 36.4% beating the market forecast of 22.4%. Imports rose by 45.3% (forecasts were around 30%).

The London-based Financial Times says: “Given Malaysia’s high exposure to trade, the numbers bode well for first quarter gross domestic product growth”.

Analysts from major banks, local and international, put the first three months’ growth at between 9.8% and 12% and they expect the trend to continue for the second quarter making it a “very good first half of the year for Malaysia.”

As a result, the analysts are also revising upwards their estimates for Malaysia’s GDP growth forecast for the year. Banks are now forecasting the annual GDP to grow by between 8% and 11% as compared to Bank Negara’s earlier estimate of between 4.5% and 5%.

“Given the recent developments in both domestic and external conditions, we are confident our 2010 forecast of 8% should be achievable,” said Ambank group chief economist Manokaran Mottain in his Economic update released here yesterday.

He also noted that besides the surge in exports, there was a marked improvement in private sector spending, especially by households. Big ticket items such as cars have seen increased sales.

According to the Malaysian Automotive Association, auto sales surged 25% year-on-year in March to 56,139 units, up from 44,896 in the same month last year.

HSBC Global Research economist Robert Prior-Wandesforde in his report entitled “From bust to boom – double-digit GDP growth in Singapore and Malaysia?” noted that the recovery of the economy came three months faster than expected.

While the Financial Times said, “Malaysia is roaring out of recession even faster than expected”.

The country’s key economic indicators including the export figures were released on Tuesday.

Malaysia’s exports recorded a new high for the month of March, amounting to RM59.44bil, registering a significant growth of 36.4% year-on-year. This was also the highest post-crisis monthly exports recorded since September 2008. Imports rose 45.3% to RM45.09bil.

The increase in exports was largely contributed by increases in exports of electrical and electronic (E&E) products, which surged 31.8%; chemicals and chemical products, (+60.8%); palm oil, (+49.3%); transport equipment, (+188.4%); as well as crude petroleum (+55.8%).

what about council to help other communities?

May 4th, 2010
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So, when would there be a council to help the Indian contractors? This is the question that will arise when you decide to pander to one community. I think there’s just too many Class F contractors in relation to the amount of contracts. The government can’t be expected to be spoon feeding them any more as the number of contractors increase but number of contracts does not grow in tandem, and not to mention about quality of work provided.  People like “them” need to realise that the pie is getting smaller but population getting bigger. You can’t take from others just because want to fulfill your quotas.

What to do, the constitution is conveniently used to muzzle people from voicing out, so cannot say much on this.

The Penang government today announced the establishment of a consultative council for the 1,316 Class F Bumiputera contractors in the state.

Chief Minister Lim Guan Eng said the council would help in terms of business opportunities, guidance, capital aid, business ethics and network formation.

This was the way for the government to resolve their problems and enhance their capability in terms of work standards and competitiveness, he told reporters here.

Lim said the council would establish a sub-centre where these contractors could take advantage of advisory service, training, seminars and briefings on tender information and e-procurement.

“We will look at the progress in the performance of these contractors and will ensure that work for these contractors is awarded throughout the year,” he said.

Lim said the council would hold meetings and discussions from time to time.

lessons from smoking in japan and indonesia, and kelly clarkson

April 25th, 2010
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To be honest, I’ve never heard of Kelly Clarkson, not surprising because I’m not into music so much. However, the decision to cancel the sponsorship tie with a tobacco company for her concert in Indonesia (albeit after being condemned and plea by fans in her FB page) caught my attention. Although latest research indicates the behavior of artistes are not as influential as advertisement by tobacco companies in getting young people to smoke (I’m still trying to find the article), I still believe it will go a long way in setting a good example.

Artistes cannot plead ignorance (same as parents, tax payers and politicians!). Her excuse:

”I think the hardest part of situations like this is getting personally attacked for something I was completely unaware of and being used as some kind of political pawn,” she wrote.

Don’t just think of bottom line profit la!

The impact of unhindered tobacco advertisement in Indonesia (one of the last holdouts that has not signed the World Health Organization’s tobacco treaty):

As smoking has declined in many Western countries, it has risen in Indonesia – about 63 percent of all men light up and one-third of the overall population smokes, an increase of 26 percent since 1995.

Smoking-related illnesses kill at least 200,000 annually in a nation of 235 million.

… About a quarter of Indonesian boys aged 13 to 15 are already hooked on cigarettes that sell for about $1 a pack or as little as a few cents apiece, according to WHO. A video on YouTube last month prompted outrage when a 4-year-old Indonesian boy was shown blowing smoke rings and flicking a cigarette. His parents say he’s been smoking up to a pack a day since he was 2. [what were the parents doing???]

… According to a 2008 study on tobacco revenue in Indonesia, smokers spend more than 10 percent of their household income on cigarettes; that’s three times more than they spend on education-related expenses such as school fees and books.

Indonesia remains one of the last places in the world where cigarette TV commercials still run, featuring rugged men and beautiful women smoking. Billboards plastered above four-lane highways encourage motorists stuck in Jakarta’s notorious traffic jams to “Go Ahead” or “Become a Man” or let Marlboro Lights “Style Your Party.”

Leggy women in short skirts and strappy heels promote cigarettes at events, sometimes even giving out discounted or free samples to “taste.”

Indonesia’s tobacco industry employs millions in the world’s fifth-largest cigarette-producing market. About 6 percent of the government’s revenue comes from cigarette taxes, and a powerful tobacco lobby has blocked past regulation attempts, including a move to ban TV ads.

Indonesian cigarettes are cheap by regional standards, with taxes less than 40 percent.

Tobacco farmers have held massive street protests to denounce any push for higher taxes or tighter restrictions.

“Kretek cigarettes are Indonesia’s heritage just like cigars in Cuba,” ” said Nurtantio Wisnu Brata, chair of the Central Java chapter of the Indonesian Tobacco Farmers Association.

Any move to limit tobacco promotion and use in the country will require strong political will. But critics point out that even Indonesia’s smoke-happy neighbors China and Vietnam have signed the WHO’s tobacco treaty and imposed stronger controls.

“The level of advertising in Indonesia is unmatched anywhere else in Asia,” said Mary Assunta, senior policy adviser for the Southeast Asia Tobacco Control Alliance. “The Marlboro Man has ridden into the sunset in many countries, but not in Indonesia.”

But there is still hope:

In recent months, anti-tobacco forces have rallied. A new health law has declared smoking addictive and urged the government to hammer out tobacco regulations. An anti-smoking coalition is pushing for tighter restrictions on smoking in public places, advertising bans and bigger health warnings on cigarette packages.

Public debate also exploded last month after Indonesia’s second-largest Islamic organization, Muhammadiyah, issued a fatwa banning smoking. Though not legally binding, the religious ruling does put pressure on smokers in the world’s most populous Muslim nation.

Now, contrast that with situation in Japan:

Japan’s smoking rate has fallen to a record low amid rising health awareness and tighter regulations.

WOW! The huge billboard in front of Yokohama Park across the intersections must have cost a bomb. It depicts a picture of a little girl beside a smouldering cigarette held in a man’s hand. The caption reads: “For the health of others, do stop smoking while walking.”

When my son was a toddler, his hair was nearly singed and my hand almost burnt by the cigarettes of smokers jostling in crowded places. Inhaling the secondary smoke made us cough, too.

My husband had smoked for nearly three decades. When he started working after graduating from university, his mother had encouraged him to smoke for the sake of socialising, only to regret later because the house reeked of tobacco smoke and the wallpapers got stained.

My father was a chain-smoker until he quit at the age of 50. Much as I loathe smoking, I overlooked this flaw in Koji when I married him.

Soon-to-be smoke-free: Japan has now banned smoking in public areas while some areas have introduced an ordinance banning smoking in the streets.

After Ken was born, Koji was confined to his study room (which I nicknamed “nicotine room”) whenever he needed a smoke. When we went on outings, he sneaked off with his portable ashtray, for a puff.

When we shifted into our present apartment, he lost his “nicotine room”. So he puffed away on the balcony.

Even during winter, he would brave the cold outside to have his cigarette before breakfast. Frustrated, I told him that he should emulate my father’s determination to kick the habit.

“I’ll quit when I reach 50,” Koji replied casually.

A week before his 50th birthday, when we reminded him of his “promise,” he retorted: “I think you said your father quit at 55.”

During that week, Ken and I checked his pockets. Good. He didn’t bring back any cigarette or filter. For the first two weeks, he kept his craving at bay with chewing gums. As an incentive for him to persevere, I rewarded him with a dinner treat and an expensive pair of shoes.

Now Koji detests the smell of tobacco smoke. His brother, brother-in-law and niece had also quit smoking.

Japan has been dubbed a major smoking nation, but its smoking rate has been decreasing since a decade ago.

Last year, a 31-year-old man and his three-year-old daughter filed a lawsuit against Tokyo’s Kita Ward government for failing to take preventive measures against passive smoking in the park, and demanded ¥100,000 (RM3,463) as compensation for the sore eyes and sore throat that they suffered. Follow ing that, the authorities removed all public ashtrays in 20 children’s parks.

Since its nationwide launch on July 1, 2008, smokers need to show their “Taspo” (tobacco passport) card to purchase cigarettes from convenience stores or vending machines. This smart card is issued to those 20 and above, to prevent minors from smoking.

Yet, underaged smokers have been illegally using the card. Two years ago in Fukuoka, a woman (a non-smoker) became the first person to be prosecuted for obtaining a Tas po card for her underaged son to buy cigarettes from a vending machine. Her action was tantamount to giving cigarettes to a minor.

It was not an April Fool’s joke when Japan’s first anti-smoking ordinance took effect in Kanagawa Prefecture, banning smoking in schools, hospitals, government offices and other public places. A ¥2,000 (RM69) fine is imposed for smoking in prohibited public buildings, while managers of such facilities face a ¥20,000 (RM690) fine.

The penalty would also apply to restaurants and hotels from April next year.

Many people welcome this move, though smokers, business operators and the tobacco industry will be affected.

Restaurants, mahjong and pachinko parlours with a floor space of over 100sqm and hotels of over 700sqm must either become non-smoking or create designated smoking areas. Operators of smaller business facilities are required to ensure a smoke-free environment and are not subjected to the penalty yet.

Notwithstanding the smoking and non-smoking sections in major restaurant chains, non-smokers are still exposed to the harmful effects of second-hand smoke. Neverthe less, major restaurant chains like McDonald’s Co (Japan) Ltd and Yoshinoya Co had prohibited smoking at their Kanagawa outlets, even before the enforcement.

The ban on smoking at swimming beaches (except for designated areas) is expected to be implemented next month. No penalty has been set for offenders but hopefully, the ban would reduce littering and prevent health hazards caused by secondary smoking.

From October, the price of cigarettes is likely to increase by ¥100 (RM3.45) a pack, to offset the market’s falling sales.

With the smoke-free environment campaigns, Tobacco Inc will launch non-flammable, odourless cigarettes next month, initially in Tokyo. Costing ¥300 (RM10.40) and classified as sniffing tobacco, Zero Style Mint comes with a tobacco pipe, mouthpiece and two cartridges. A pack of four refill cartridges costs ¥400 (RM13.80). The 8cm cigarette-like device can last half a day or the whole day, and its nicotine content is one-twentieth that of a regular cigarette.

With such stringent actions, Japan’s smoking rate is expected to drop further.

Well, we can take a leaf or two out of Japan’s success story so far. Strict rules, better enforcement, coming out with products that are less harmful, and so on. We are also slowly moving away from tobacco planting to other crops.

I will also like to propose that all smokers must be forced to take up additional insurance policy to cater for their indulgence. I don’t want government money being wasted on some smoker who needs treatment due to his addiction.  Secondly, such smokers should also ensure their families are well protected (financially) in the event of the their untimely demise or incapacitation, the family won’t be having financial difficulties.

1MALAYSIA Economics Seminar by MIBC

April 25th, 2010
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received via email:

The Malaysian Indian Business Co-operative is organising a half-day seminar entitled 1MALAYSIA ECONOMICS SEMINAR on Saturday, the 15th of May, 2010 at the Auditorium at Wisma Paradise in 63 Jalan Ampang, Kuala Lumpur. This is part of our obligations to our community who are starved of business opportunities and lack the knowledge to access available funds.

We have three eminent speakers and trust members of the community will benefit from the knowledge to be imparted at the Seminar. The tentative program for the day is as follows:

Time Topic Speaker
9.00am -9.45am Sources of Funds En. Fozian Ismail of Small and Medium Enterprises Corporation
9.45am – 10.00am Q & A
10.00am- 10.20am Tea Break
10.25am -11.10am Seeking New
Business Opportunities Dato’Pardip Kumar Kukreja, CEO Paradise
Group
11.10am – 11.25am Q & A
11.30am – 12.15pm Access to Finance Mr. Thomas Tan of Bank Negara
12.15pm -12.30pm Q & A
12.30pm – 12.50pm Panel Discussion Participants to seek clarification on related topics
1.00pm Close

The fee for this useful seminar is only RM70.00 to cover costs of venue and refreshments. Persons wishing to participate are requested to send in an email to ganapathy_ramasamy@yahoo.com

Payment of RM 70/- should be made thru cheque/Money Order in the name of “KOPERASI PENIAGA-PENIAGA INDIA MALAYSIA BERHAD” and posted to Malaysian Indian Business Co-operative, 5.02 A, Level 5, Wisma Paradise, 63 Jalan Ampang, 50450 Kuala Lumpur before the seminar date.
You may also make online payment to CIMB Account No: 14260074623525. If you are making online payment please send me an email or fax the receipt to 03 7981 0424.

As seats are limited allocation will be on a first come basis.
Rgds

Ganapathy Ramasamy
Organising Chairman
H/P 013 3691021

How much money do you save each month?

April 20th, 2010
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Some of us may have had parents in the similar situation as below about 30-40 years ago.  I think back then, people could scrimp and still survive, and hopefully try to provide a better living for their kids. But in current high cost of living, is it possible to save something for the future, let alone spend for children’s education, good food, or invest in own house?

Which brings me to the question: how much do you save every month in terms of percentage of your income (either individual or household)? Is it 0%, 5%, 10%, 20%, 30% or high as 60%? Do you have a saving plan that you follow or its an ad-hoc kind of thing?  How much do you think you should save every month in terms of absolute amount? RM100? RM200? RM500? Rm1000?

Why do you save money? I guess its for use in the future – buying house, children education, retirement, buying luxury/dream stuff, medical cover, for emergency, and so on.

Don’t worry, I’m not going to preach about some savings/investment scheme 🙂 Just blogged about this out of curiosity.  I’m sure all of us have bills to pay, loans to settle, transport costs, communication expenses and so on. Money just flies out so easily.

Well, read the article I mentioned and think about the poorer section of our community.

Extract of an article from Malaysiakini:

Clutching her payslip for the previous month in her right hand and a paring knife in her left, S Letchumi rants about how tough life is on the estate where she has lived for 25 years,

She points at the RM217 take-home pay printed on her payslip, agonising over her family’s monthly trials with three children in secondary school and two sets of sickly parents to care for, not to mention putting food on the table.

“We have supported Barisan (Nasional) for so long. Every time they come here they tell us to vote for them, they promise they will help us. But after they win, they never show their faces here until they need our votes again,” she said, absent-mindedly brandishing her knife.

Letchumi, 42, and a group of women in Ladang Kerling were getting ready to cook food brought in by Puteri Umno in time for a 4pm gathering scheduled at their temple on Monday.

Mariamah Subramaniam, 39 and a single mother of four, said the workers don’t mind the “gifts” that political parties normally bring while campaigning, but that they would much rather have a concrete solution to their poverty.

“It’s nice. PKR gave us some help with rice and some money for our children’s bus fare, but they can’t just give this year and stop giving after that. Of course it’s better than nothing… BN didn’t give us a single thing when they came,” she said, bouncing her nine-month-old daughter on her hip.

Depending on the weather, estate workers say they can earn as much as RM890 in a good month or as low as RM100 when the rains come.

Second-generation estate retiree Ragaraman Kolican, 58, is still poor after tapping rubber for 29 years, and not for lack of trying.

“I was born here. I grew up here. I continued to work the estate after my father died, but with my earnings being so low, I can’t afford to buy anything, not a house, not land.

“This whole area was 100 percent BN for a long time. In the past, even if you say you will cut our throats, we would still vote BN. But the BN politicians never keep their promises. 

“Palanivel held the seat for so long and every election he told us he will listen to all our problems after he wins, but he never came,” he said, referring to former four-term Hulu Selangor parliamentarian G Palanivel, who lost the seat to PKR in 2008.

No love for MIC

Thirumurthy Appalanaidu (left), 48, admitted that the estate workers know little of BN candidate P Kamalanathan but stressed that they have already made up their minds.

“We are not angry with (premier) Najib (Abdul Razak), but we know very well that MIC has not done anything for us.

“We read the news, we know that Najib announced (allocations of) millions (of ringgit) to help the poor but when the money reaches MIC it does not go down to the people.”

Thirumurthy added that PKR has done more for them over the last two years than the BN has over the decades that it held Hulu Selangor.

“If BN had helped us we can vote for them, but without helping us how do we vote for them?” he asked.