Posts Tagged ‘Funds’

Dollar for dollar?

November 28th, 2008
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I guess it should be ringgit for ringgit. The plan is to “refund” MAIKA investors for the failed investments. I guess that’s the best offer the investors can hope for under current circumstances. From what I read in the papers, the idea is to sell of MAIKA’s remaining assets and pay off the investors. Only thing stopping this is the injuction by NESA Coperative against that motion. The court will decide it soon.

Of course, one will ask about the loss of potential returns. Hmmm…tough question to answer. Did MAIKA guarantee any returns? Did the leaders provide such guarantees? I have no idea. Its something that those involved have to clarify.

Will this be the closing act of a sad chapter in MIC? Can MIC clear the baggage and move on?

allocation for non Muslim place of worship still available

November 10th, 2008
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RM1.8 million – wow, that’s a lot!. With less than 2 months left, there’s not much activities that can be done. Allocations that are not used will not be carried forward to next year. What the places of worship can do is small renovations, purchase of items, and also perhaps organising charity event. School is around the corner. It will be great if some underprivileged kids are given new uniforms, shoes, bags and stationeries. If RM3 million can be finished in 60 over days under BN, why does it take new government long to finish the money?

1 – current government inefficient
2 – current government very stingy or ask too many question
3 – previous government very lax or used it as election goodies
4 – money went to cronies/favoritism under previous ruling
5 – lack of awareness

Only 10% of the additional RM2mil allocation by the Selangor Government for non-Muslim places of worship has been used up.

State Local Government, Study and Research Committee chairman Ronnie Liu said one reason more than RM1.8mil remained untouched was because many did not know its existence.

He said the previous Barisan Nasional government had allocated RM3mil for such places of worship this year, but all had been spent before the general election in March.

“The additional RM2mil is part of the commitment of the new government to help non-Muslim places of worship,” he said.

The allocation, he added, was meant for repairs, renovations and organising charity events.

He added that so far only Taoist and Hindu temple committees have applied.

“We hope churches and temples will apply before the end of Decem­ber,” he said.

Liu, who also sits on the committee for non-Muslim affairs, said there would be a higher annual allocation next year.

He said the allocation, for RM6mil, was approved in the state assembly last month.

Those who want to apply for this year’s allocation can write to the State Secretariat, Bangunan Sultan Salahuddin Abdul Aziz Shah, Bukit SUK, Section 5, 40503, Shah Alam or call 03-5544 7000.

Government agrees in principle for PNB mechanism

November 9th, 2008
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Another glimmer of success is in sight after the PM and his deputy agreed “in principle” to MIC’s proposal (actually many other people suggested this idea as well especially via media and forums, but never mind, we give the honor to MIC) to set up a mechanism under Permodalan Nasional Bhd (PNB) to increase the equity ownership among Indians in the country by three per cent in 2020, from the current 1.2 per cent.

According to Samy Vellu:

…the matter was agreed to by both Prime Minister Datuk Seri Abdullah Ahmad Badawi and his deputy, Dauk Seri Najib Tun Razak, who is also finance minister, when he met the two leaders recently.

“The special mechanism to be set up under PNB will use a similar model as the one used to assist the bumiputera community.

“I have asked the government to set aside an allocation as a form of partial grant and loan to be given to the Indians under the said mechanism,

Another success due to Makkal Sakthi I guess – MIC becoming a bit more relevant and improving a bit on their achievements. Perhaps they will even surpass their past 20 years achievement in the next one year itself.

But I still believe that it should be set at 10%, not 3%. Together with the grants and loans, the recipients should also be provided with some education and awareness on what are they getting into. No point the recipient getting RM1000 worth of units, but selling it off the next day to cover his/her daily expenses.

If can, the units may be linked to some sort of insurance scheme as well.

If done properly, this can be one of the channels to improve the financial status of the poor and underprivileged. However, it must be stressed that providing equity sharing is not enough. It will be falsity to think that the problems faced by the community will go away by giving RM500 million per year (yup, I’m expecting nothing less than that!) in loans and grants. There must be some fail-safe mechanism the amount is not misused by middlemen like MIC, or the recipients themselves. For example, we can put a 3 year “no sell back” clause.

Secondly, how to ensure the correct people get the help? As it is, even the poor and underprivileged are not properly tracked by Welfare Department, so what database are the authorities going to use? How about a list from KWSP? Take the employees of estates, public utilities providers, factories. The government’s employees list can also be obtained. From there, filter those who are earning XXX or less per month. This will be a start, but it would not include self-employed or the unemployed (like housewives).

While waiting the “agreement in principle” to be realised, better some think tanks start their research.

3 percent EPF reduction to be made automatic!

November 7th, 2008
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I was surprised to read in both Star and NST today that the 3% reduction in EPF contribution will be done automatically “for the ease of members and to facilitate implementation measures”. That means it is not an opt-in choice as implied by Deputy PM Najib, but its an OPT-OUT choice. Your contribution is reduced (means you get back more money) UNLESS you inform EPF. How to inform? Fill in the form KWSP 17A (AHL) and give it back to your EMPLOYERS. The form can be obtained from all EPF branches or download them from their website at www.kwsp.gov.my from Dec 1 onwards.

The reduction will run until end of December 2010, meaning two years.

Now, what would you do? Opt for the extra 3% cash in hand or choose not to reduce the contribution? Those who think cash in hand is better, can make use of the reduction and perhaps invest the money in other investment vehicles. Or you can use it to reduce yourloans. As long as the extra cash is not wasted on unwanted expenses. OR if you think that better to keep the money in EPF, then fill up the form and cancel your reduction.

MIC to ensure allocations reach Indians, says Samy

November 6th, 2008
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This piece of news would have sent shudders down the community’s collective spine! It would be better if the Cabinet Committee keeps tabs on the allocations, since it involves more than just MIC. But no, MIC wants all the name and fame.

MIC to ensure allocations reach Indians, says Samy

KUALA LUMPUR: The MIC will en­sure that allocations under the RM7bil stimulus package reach the Indian community, its president Datuk Seri S. Samy Vellu said.

He said the MIC economic bureau would ensure that the package an­­nounced by Finance Minister Datuk Seri Najib Tun Razak on Tuesday benefited everyone in the community.

“We will coordinate its implementation through the special Cabinet Committee on Indian Affairs chaired by the Deputy Prime Minister,” he said in a statement yesterday.

Samy Vellu also called for a speedier implementation of programmes and plans by government agencies.

He expressed confidence that the Government would ensure a fair distribution of the perks under the package.

“The MIC will concentrate on the economic agenda with priority on seeking business loans for young Indian entrepreneurs, especially in SMEs and SMIs.

“The RM200mil allocation for micro-credit loans is one area where we can look into,” he said.

Samy Vellu said the party would work with the Education Ministry on the RM50mil allocation for Tamil schools.

He said the elimination of import duties on cement as well as iron and steel products would reduce the cost of reconstructing Tamil schools.

There are many organisations that can help to monitor – EWRF, Tamil Foundation, HINDRAF (albeit illegal), IPF, PPP, and so on. Tamil Foundation’s president K Uthayasoorian says:

Proper financial controls should be put in place to monitor the use of government funds allocated for Tamil schools. He said experience had taught him that “all the promises (of the past) were just publicity stunts”.
“We want to see some value. We would prefer a policy decision on how the money is going to be used to upgrade the schools, as we never know where the money goes,” he claimed when contacted.

“The government should form a committee to monitor the disbursement and at the same time ensure that there is transparency in spending.”

“The RM50 million is a good amount and should be sufficient for Tamil schools although it has come late,” said Uthayasoorian.“Preferably we would like to see this amount being used to convert all partially-aided schools to fully-aided Tamil schools as this would eliminate problems related to private funding, repair works and so on,” Uthayasoorian added.

NUTP’s president Hashim Adnan says it succintly:

It is high time that the government gives assistance to all schools, instead of limiting this to national-type schools.

We welcome the RM200 million allocation. The amount may be insufficient, but it is a good start by the government.

After all the Chinese, Indian and missionary and religious schools have Malaysian children studying there. They should now be given the same (financial) support as national-type schools.

This will provide everyone with an equal opportunity to gain quality education. The government must remember that an investment in education is an investment in the future, as pupils will become future leaders and contribute back to society.

In the past, these schools depended on donations in cash and kind to survive. This was why pupils studied in an inadequate environment, (having to put up) with broken-down furniture and leaking roofs. I hope this will be a thing of the past for the schools.

I hope that the funds would be channeled appropriately to the schools and not be hijacked by unscrupulous bureaucrats or politicians. After all this is for the benefit of our children. It is hoped that the Chinese and Indian students will not feel that (their needs) have been left out.

I hope the amount will be increased by the government, so that all schools benefit. This should not be a one-off thing.