Posts Tagged ‘Economy’

New plans show Indians marginalised

July 6th, 2008
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Some say that’s what the title of Malaysiakini article should have been. Of course its not their fault for the mistake because the interviewee, Dr S.Subramaniam the Human Resource Minister said so.

MIC leader Dr S Subramaniam has described the series of measures
unveiled by the government recently to help the Indian community as a
sign that it never marginalised the community.

S.Subra acknowledged that the series of policies announced after the cabinet committee meeting were results of the general elections outcome.

As a responsible government, not only has it responded to the message (by voters), it also sent the message back to the community that ‘look here, we never intended to marginalise you’

He also had described these policies as a major achievement for MIC. Perhaps he meant the only achievement in last three decades.

The government has been very sensitive to the requirement of the community and is actually committed to address the Indian community’s problem so that it can be at par with the other communities

Obviously one have to take his statements as something with an hidden meaning. What S.Subra was actually trying to say is the exact opposite. He gave us clues – by linking the decisions with general election results and using the phrase “never intended”. So, if the results were different, what would have been the status of the committee?

That’s why his statements are important. By making those seemingly self-serving statements he is indeed telling us SOMETHING.

S.Subra also said the cabinet
committee will have a monitoring team, led by his ministry, to check
implementation progress of these policies. He also called on the Indian community to take up what was offered by the government.

It’s
for the community to move forward now and avail themselves to these
opportunities. Of course the opportunity can be given but the person
must also take the initiative to come forward,” said the MIC leader.

I wrote my views about the decisions of the committee earlier. ynway, here’s more details about the committee’s decisions:

  • To convert 372 partially-aided Tamil schools into fully-assisted schools.
  • Consolidate schools which had an enrolment of less than 50 students.
  • To ensure at least eight percent of Indian representation at all levels in the civil service. To achieve that, it will also see more promotions for Indian civil servants.
  • The MIC-run Asian Institute for Medicine, Science and Technology (Aimst) to be re-categorised as one of the five private universities which recognise government-sponsored students to boost the intake of Indian students into critical sectors like medicine and engineering. At present, students who receive government scholarship were only given a list of choice of universities which does not include Aimst.
  • To allow Indian contractors to take part in government projects at all levels. For government’s mega projects, it is suggested that certain sub-contract jobs be given to Indian contractors.
  • Indian entrepreneurs to be given more opportunities in the development of vendor development scheme through companies like state-owned oil firm Petronas and national car-maker Proton.
  • Easier access to government loans for Indian entrepreneurs.
  • More taxi and bus permits for Indian companies.
  • To increase the Indian corporate equity from the current 1.1 percent to 1.5 percent in 2010. To do this, the government is planning to set up a unit trust scheme based on the Permodalan Nasional Berhad model to allow Indians to invest in the scheme to increase their equity in the market.

Affected by fuel price hike

July 6th, 2008
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You can say that I’m one of citizens directly impacted by the prike hike due to fuel price increase. Renovation, material and electrical/house items prices increased by 20-30% after July 5th. The Star reports that:

A house that cost RM100,000 to build will now cost about RM130,000 with the prices of all types of building materials up by 15% to 30% across the board.

Steel Bars: Now RM4,100 per tonne compared to RM3,500 in June.

Cement: Now RM13.45 a bag compared to RM10.95 last month.

Bricks: RM0.245 each compared to RM0.22 previously.

Ready mix concrete: RM190 per cubic metre compared to RM160 last month.

Copper: RM28,275 per tonne now compared to RM3900 three years ago.

Prices of other building materials such as sand have also gone up by 25%, quarry products by 30% and tiles by 22%.

As for me, costs for renovation and buying equipments/items increased about 20-30%. Bankrupt la 🙁
Not only that, from my experience in the last two weeks (bargain hunting), there’s fear among the shop owners (mainly Chinese) that people won’t spend more freely. They are repeating the mantra “book now, price will increase soon”. This creates a fear in consumers to buy in bulk or make deposits to secure current prices.

Prices that affected include:

  • Tiles
  • Installation for air-cond units
  • sinks
  • biscuits
  • processed poultry items
  • ice cream
  • KFC
  • cooking oil (corn)
  • eating out at indian restaurants

1st Meeting Cabinet Committee on Indian Community

July 2nd, 2008
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I reproduce the whole article from the Star today. Heard a bit over the radio yesterday night as well.

The main points discussed:

1. there will be a special unit to monitor Tamil schools, especially to help convert to full-aided status, and merge schools with less students. Rather than merging, relocation will be a better option.

2. AIMST to receive grants from government to sponsor students. I don’t think that only AIMST should be chosen for this purpose. There should another few more institutions to avoid calls of cronyism or favoritism.

3. taxi and bus permits.

4. better business opportunities and loans.

5. more places for vocational training.

6. lack of Indians in civil service.

7. getting PNB’s help in the unit trust investment for Indians. This, I suppose is related to the recent announcement during 9th Malaysian Plan Midterm Review.

8. University intake for Indians will not be review (not mentioned in the article below). Najib says the students must study hard in school to ensure better prospect in entering local universities.

This committee was established in the aftermath of BN being rejected by the Indian community in the last election. Thanks to the awareness created by HINDRAF, the community can now see that proposals by MIC is being taken a bit more seriously by the government.

Unit to keep track of Tamil schools

KUALA LUMPUR: The Government will set up a special unit under the Education Ministry to monitor the development of Tamil schools as well as their problems.

Deputy Prime Minister Datuk Seri Najib Tun Razak said the unit would identify the schools to be converted into fully-assisted schools as well as consolidate those which had an enrolment of less than 50 pupils.

“For these schools which will be consolidated, we will propose that dormitories and other facilities be built for the students.

“For schools which have too many students, cabins will be built as additional classrooms for them,” he told reporters after chairing a Cabinet committee meeting on social problems facing Indians at the Parliament building here yesterday.

Najib said the committee also proposed that an institute set up by MIC – the Asian Institute for Medicine, Science and Technology – be re-categorised as one of the five institutes to receive aid from the Government as a measure to boost the intake of Indian students into critical sectors like medicine and engineering.

The institute, he added, would then sponsor Indian students to pursue courses in critical areas in institutions of higher learning.

Other matters raised during the meeting included more taxi and bus permits for Indian companies, better business opportunities and easier loans for entrepreneurs from that community, and more vocational training places for its youths.

“We would also like to see more opportunities for Indians in the development of vendor programmes with companies like Proton and Petronas.

“The committee also notes the lack of Indians in the civil service. We will raise this matter with the Public Service Department,” said Najib.

Najib said the committee would also discuss with Permodalan Nasional ways to increase the Indian hold on equity in the Malaysian market.

How to set up the unit trust program for Indians

June 30th, 2008
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Since the special fund (unit trust) was announced to help the indian community, many people are becoming interested. Obviously by given the job to existing fund managers like PNB who manage government unit trust schemes (ASN, ASB, ASM, ASW, ASD etc.) people will be more willing to trust it. Anything but MIC – that’s the what I hear. No one wants another MAIKA.

 

Firstly, people from all walks of life should be given an opportunity to get those units, and definitely not given to few selected Indian-based cooperatives or organisations only. Post offices and banks should be used as application centres. There should also be a limit on the amount each individual can subscribe. The fund size should be moderate, perhaps 1000 million units at RM1/unit for a start, which translates to about 562 units per individual (based on population of 1.78 million). A maximum limit of RM10,000 should be imposed. This will provide some hindsight on how much equity the community can afford to put up.

 

Secondly, the rate of return should be on par with other existing funds managed by PNB. At the moment, we find that ASN earns about 2% more than other unit trust schemes under PNB (if I’m not mistaken).

 

MIC, meanwhile records its thanks to the goverment as mentioned by Devamany:

 

The MIC had previously called for the Indian community’s equity to be increased to three per cent by 2020.

We are happy with the government’s move to form a special trust fund to increase the Indian community’s share of the economy.

However, Deputy Minister Saravanan suggested that a special committee to progress of the fund is set up. He said that there should be a fair Indian representation in the committee comprising professionals, especially bankers, stock market experts, non-governmental organisation activists and political parties.

 

The committee must ensure smooth and fair implementation of the scheme. The scheme must receive equal distribution of unit trusts for the Indian community and nobody should be left out.

Unit trust scheme to reverse Indian equity drop

June 26th, 2008
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The hottest news among the concerned Indians surely have to be the news that Indian equity DROPPED to 1.1% from previous 1.2%. This is a big blow to MIC, and if used properly, will spell the end of Samy Vellu and MIC. For all they claimed on stages and advertised in papers, what we ended up with is a drop in equity. When everyone else registered positive growth, ours went the opposite way. Even though the value of investment increased (by/to?) RM575.2million or 9% within the period 2004-2006.
Unless there is proof that from 2006 to 2007, some sort mini miracle happened to improve the percentage…it will be a body blow for MIC.

Yeah, equity may not be all, but as it is an indicator fondly used by other races, so I guess its fair that we too treat it as an important indicator.

The non-privileged, normal Malaysians share increased from 40.6 percent in 2004 to 43.9
percent in 2006, meaning the Chinese community’s hold increased 3.3%, far more than the privileged and Indians communities.

For non-bumiputeras, it increased from 40.6% in 2004 to 43.9% in 2006. Chinese ownership group saw an increase from 39.6% to 42.4%, while for Indians it showed a slight decline from 1.2% to 1.1%.

However, there was a decline in foreign ownership from 32.5% to 30.1% while for nominees, it fell from 8.0% to 6.6%.

Also, the contentious “privileged’ people equity is being put at 19.4% whereas alternative figures quote more than 45% (google for ASLI’s report on bumiputra equity), increasing from 18.9% in 2004. ?During the period, individual ownership increased from 15.0% to 15.1% while for institutions, including Permodalan Nasional Bhd, it increased from 2.2% to 2.6%. The government’s target under the 9MP is to attain bumiputera equity ownership between 20% and 25% by 2010, which excludes government companies like Petroliam Nasional Bhd and Khazanah Nasional Bhd. The equity ownership is based on the par value of the shares and not on market capitalization.

The irony is privileged people’s equity increased 0.5% and below are among the measures to reach the target of 20 to 25% being introduced by PM:
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