Seeing recent suggestions and blogs on shadow cabinet by Pakatan Rakyat, I would like to propose a suggestion - instead of appointing direct shadow ministers on par with over 30 ministries, select only important ministries and set up a shadow committee/shadow secretariat/whatever name, to check and balance the respective ministry.
In the shadow committee (just a proposed name, SC hereafter), there will be members from all three PR parties, each from PKR, PAS, and DAP. And if there's no suitable MP who's specialised in that respective area, SC member can come from research/thinktank under that party. For example, we cant find a suitable candidate from DAP who's specialised in finance, but remember that under DAP there are thinktank and advisors who are specialists in that area, and he can be appointed to the SC.
And on my point to set up SC on only important ministries - there are currently over 30 ministers in current government, which makes Malaysia among nations with highest number of ministers. Among these ministries, the jobscope and responsibilities in certain ministires and seriously overlapped. PR does not have to set up SC to oversee all of them. Just set up, say 10-15 SCs, and some of these SC can oversee 2-3 ministries.
There are a few adv in this structure-
- to identify suitable candidates in respective specialisation
- to maintain fair representation of all PR parties
- better communication among PR component parties
- centralised and coordinated action is possible
- more transparent operation
- show to all that PR has the capability to govern in federal level
- last but not least, rakyat know who should they see to voice out problems if one arises.
P/s: remember that members in SC are merely potential candidates. and SC system acts as testing period to identify the best candidate for future minister - SC also eliminate potential criticism and unhappiness among PR component parties, because there is representative from each party - the best wins, no question asked. ALso, in the case of unsuccessful promotion to become 'minister', member of SC can possibly become deputy, or secretary-general, which is very good too.
Whatever form of shadow cabinet structure, PR urgently needs to come up with something, if they aim to take over federal govt - to avoid the messy situations like we saw after the GE12 ie in the states of perak and selangor.
Way to go PR!
Why cant government reduce oil price at pump?
Recently, the price of oil price at pump in Malaysia has been a hot topic. But it seems like many Malaysians do not know the real reason why cant the government reduce the oil price at pump to RM1.44 which is the reasonable price.
Just look at the petrol stations in your neighbourhood - who are the owners? The petrol station business in our nation is actually monopolised by Umno. Started from 80s, Umno warlords thought that petrol business is a risk-free business, and since then all new petrol station licenses were issued to all the cronies. Heck, even Ahmaid Ismail owns a petrol station.
As in other businesses, these cronies are fighting with each other for these licenses so sometimes you can see there are 3-4 petrol stations in just a small area. Hence, there are actually a number of them who went bankcrupt because of too competitive environment. Remember that all their businesses were financed by loans from government, so who actually went down? Go figure out yourself.
Anyway... during the steep price increase, these cronies made billions out of it. They stockpiled or ordered huge quantity of oil just before of the increase. But being smartasses, they thought that oil price would go up continually, which of course came back down as we know it.
And because some of them, who were so greedy that went on to order more especially the bigfishes with deep pocket, it's a nightmare for them to see the oil price dropped from $147 to $50.
But remember, the price they ordered was below RM1.90 before the increase. Actually they will never incur any losses. They just didnt make so much money as predicted. So you see now why Sharir once said RM1.90 is the minimum price for our oil?
You see, the main problem with all these cronies are that, they think that there is actually free lunch under the sun. Millions and millions without working for it. But the funny thing is, in Bolehland, sometimes there is actually free lunch!
But we know that all the men who are spoonfed all the time will lose the competitiveness, will become weak, will become lazy, will become greedy and asking for more and more. One day, when government can no longer afford to give out these freebies, these people will become so weak that they will never be able to compete with others. That will be the time when hell breaks loose.
That time is not that far away because in globalised world, eventually they will have to face the reality.
The only thing that I am worried is, will they blame this person and that person when the freebies are taken away? Somehow, blaming and pointing fingers are what they are good at. Blame everyone else but themselves.
See what I mean?
Just look at the petrol stations in your neighbourhood - who are the owners? The petrol station business in our nation is actually monopolised by Umno. Started from 80s, Umno warlords thought that petrol business is a risk-free business, and since then all new petrol station licenses were issued to all the cronies. Heck, even Ahmaid Ismail owns a petrol station.
As in other businesses, these cronies are fighting with each other for these licenses so sometimes you can see there are 3-4 petrol stations in just a small area. Hence, there are actually a number of them who went bankcrupt because of too competitive environment. Remember that all their businesses were financed by loans from government, so who actually went down? Go figure out yourself.
Anyway... during the steep price increase, these cronies made billions out of it. They stockpiled or ordered huge quantity of oil just before of the increase. But being smartasses, they thought that oil price would go up continually, which of course came back down as we know it.
And because some of them, who were so greedy that went on to order more especially the bigfishes with deep pocket, it's a nightmare for them to see the oil price dropped from $147 to $50.
But remember, the price they ordered was below RM1.90 before the increase. Actually they will never incur any losses. They just didnt make so much money as predicted. So you see now why Sharir once said RM1.90 is the minimum price for our oil?
You see, the main problem with all these cronies are that, they think that there is actually free lunch under the sun. Millions and millions without working for it. But the funny thing is, in Bolehland, sometimes there is actually free lunch!
But we know that all the men who are spoonfed all the time will lose the competitiveness, will become weak, will become lazy, will become greedy and asking for more and more. One day, when government can no longer afford to give out these freebies, these people will become so weak that they will never be able to compete with others. That will be the time when hell breaks loose.
That time is not that far away because in globalised world, eventually they will have to face the reality.
The only thing that I am worried is, will they blame this person and that person when the freebies are taken away? Somehow, blaming and pointing fingers are what they are good at. Blame everyone else but themselves.
See what I mean?
Why should Najib call for snap election?
If Najid were to take over, there is definitely high posibility of a snap election, 6-12mths after Abdullah's handover.
Firstly, Najid has to show that he has the mandate from majority of Malaysians. In GE12, Pak Lah, instead of Najid, was the President of BN hence the candidate for Prime Minister. People voted Pak Lah, not Najid, to be Prime Minister of Malaysia.
Remember, in any democratic country, there is never a case that Prime Minister-ship can be handed over by one person to another. This is un-imaginable and totally against the principle of democracy.
Furthermore, in Bolehland, the Prime Minister actually is not elected by majority of Malaysians. The Prime Minister of Malaysia in fact is elected by majority of Umno 200 delegates. How can a Prime Minister of a country with population of 25millions be elected by a delegation of 200 people? The fate of 25million people is decided by 200 people. And consider the rampant money politic in Umno, what kind of person do you think in their potential candidate list? No wonder Malaysia always is laughing stock to the world.
Secondly, despite all the make-up and dressings, Najid suffers from all kind of scandals from sex to money to weapons ie Altantuyah, submarine, Eurocopter, etc that put his personal character and credibility seriously in doubt. The Prime Minister of Malaysia faces not only his fellow countrymen, he needs to face the world too.
He must prove his credibility. But not through the usage of Elite police force and C4 of course. At least certainly not through the deletion of immigration records. Swearing on Quran definitely is not enough because 45% of Malaysians do not practise Islam. (Besides, the act of swearing has seriously damaged the image of Malaysia's judicial system. How can a person swear that he's innocent, and oh he's proved innocent. Is this some kind of joke or what? )
We Malaysians do not want someone with personal character seriously in doubt to represent us. Never.
Despite all the slogans, all the infrastructure, all the money spent, to show that Malaysia aims to be advanced country, what Malaysia really needs is to uphold the true democracy and liberty which is the cornerstone of every first world country.
Give me liberty or give me death!
Firstly, Najid has to show that he has the mandate from majority of Malaysians. In GE12, Pak Lah, instead of Najid, was the President of BN hence the candidate for Prime Minister. People voted Pak Lah, not Najid, to be Prime Minister of Malaysia.
Remember, in any democratic country, there is never a case that Prime Minister-ship can be handed over by one person to another. This is un-imaginable and totally against the principle of democracy.
Furthermore, in Bolehland, the Prime Minister actually is not elected by majority of Malaysians. The Prime Minister of Malaysia in fact is elected by majority of Umno 200 delegates. How can a Prime Minister of a country with population of 25millions be elected by a delegation of 200 people? The fate of 25million people is decided by 200 people. And consider the rampant money politic in Umno, what kind of person do you think in their potential candidate list? No wonder Malaysia always is laughing stock to the world.
Secondly, despite all the make-up and dressings, Najid suffers from all kind of scandals from sex to money to weapons ie Altantuyah, submarine, Eurocopter, etc that put his personal character and credibility seriously in doubt. The Prime Minister of Malaysia faces not only his fellow countrymen, he needs to face the world too.
He must prove his credibility. But not through the usage of Elite police force and C4 of course. At least certainly not through the deletion of immigration records. Swearing on Quran definitely is not enough because 45% of Malaysians do not practise Islam. (Besides, the act of swearing has seriously damaged the image of Malaysia's judicial system. How can a person swear that he's innocent, and oh he's proved innocent. Is this some kind of joke or what? )
We Malaysians do not want someone with personal character seriously in doubt to represent us. Never.
Despite all the slogans, all the infrastructure, all the money spent, to show that Malaysia aims to be advanced country, what Malaysia really needs is to uphold the true democracy and liberty which is the cornerstone of every first world country.
Give me liberty or give me death!
Guan Eng shocked by police violence
Source MalaysianInsider
KUALA LUMPUR, Nov 10 — DAP have condemned police action in breaking up last night's gathering in Petaling Jaya to mark the first anniversary of the Coalition for Clean and Fair Elections (Bersih) rally.
Party secretary-general Lim Guan Eng said he was "shocked at the violence by the police."
"I cannot understand why peaceful citizens and elected representatives were attacked," added the Penang Chief Minister.
Police detained 23 people, including PJ Utara MP Tony Pua, Selangor Exco Ronnie Liu and Kampung Tunku state assemblyman Lau Weng San at the rally in PJ New Town and released all except one this morning at 7.30am.
Also detained were two members of the press and Father Paulino Miranda, parish priest of the Church of the Divine Mercy in Shah Alam.
Pua showed reporters in Parliament a shirt he had worn last night and claimed that all the buttons had been ripped out due to manhandling by the police.
"Even though I said I would cooperate and walk to the police truck when they arrested me, they still tore my shirt. Three other police personnel also attacked me, one kneed me in the belly and another aimed a kick at my shin," he said.
Pua also insisted that police had charged and dispersed the crowd while they were singing “Negaraku” to end proceedings for the night, a claim that Selangor police chief Datuk Khalid Abu Bakar denied.
Lau lodged a police report at 4.29am while in police custody, claiming that he had been punched twice by a police officer.
Showing reporters the cuts on his cheek and lip, he called the "unruly and aggressive" police behaviour unnecessary.
DAP parliamentary leader Lim Kit Siang questioned the "massive deployment of police personnel to break up a peaceful gathering by excessive police force and violence" as it showed that it was being made a priority over "the mobilisation of police to keep crime low."
Earlier, Home Minister Datuk Seri Syed Hamid Albar told reporters in the Parliament lobby that he was not aware of the details of the incident as he had not obtained a report.
"Police work is police work. They are responsible for maintaining law and order. This is routine police work," he said.
Syed Hamid added that if there was any unhappiness with the police, people could lodge reports.
KUALA LUMPUR, Nov 10 — DAP have condemned police action in breaking up last night's gathering in Petaling Jaya to mark the first anniversary of the Coalition for Clean and Fair Elections (Bersih) rally.
Party secretary-general Lim Guan Eng said he was "shocked at the violence by the police."
"I cannot understand why peaceful citizens and elected representatives were attacked," added the Penang Chief Minister.
Police detained 23 people, including PJ Utara MP Tony Pua, Selangor Exco Ronnie Liu and Kampung Tunku state assemblyman Lau Weng San at the rally in PJ New Town and released all except one this morning at 7.30am.
Also detained were two members of the press and Father Paulino Miranda, parish priest of the Church of the Divine Mercy in Shah Alam.
Pua showed reporters in Parliament a shirt he had worn last night and claimed that all the buttons had been ripped out due to manhandling by the police.
"Even though I said I would cooperate and walk to the police truck when they arrested me, they still tore my shirt. Three other police personnel also attacked me, one kneed me in the belly and another aimed a kick at my shin," he said.
Pua also insisted that police had charged and dispersed the crowd while they were singing “Negaraku” to end proceedings for the night, a claim that Selangor police chief Datuk Khalid Abu Bakar denied.
Lau lodged a police report at 4.29am while in police custody, claiming that he had been punched twice by a police officer.
Showing reporters the cuts on his cheek and lip, he called the "unruly and aggressive" police behaviour unnecessary.
DAP parliamentary leader Lim Kit Siang questioned the "massive deployment of police personnel to break up a peaceful gathering by excessive police force and violence" as it showed that it was being made a priority over "the mobilisation of police to keep crime low."
Earlier, Home Minister Datuk Seri Syed Hamid Albar told reporters in the Parliament lobby that he was not aware of the details of the incident as he had not obtained a report.
"Police work is police work. They are responsible for maintaining law and order. This is routine police work," he said.
Syed Hamid added that if there was any unhappiness with the police, people could lodge reports.
潘俭伟刘永山现身说法被捕经历
Source MalaysiaKini
两名在昨晚的公选盟烛光晚会上被捕的民主行动党议员，今日在国会现身说法，转述昨晚遭警方粗野逮捕与殴打的过程，并强烈谴责警方使用不必要的过度暴力来对付和平民众与代议士。
在这场冲突中，八打灵再也北区国会议员潘俭伟的橘色衬衫被警员撕破；甘榜东姑州议员刘永山的右脸颊则两次被警员挥拳殴打，留下明显的伤痕，其嘴唇也受伤。
两人今早在行动党秘书长林冠英、国会领袖林吉祥与该党其他议员的陪同下，于国会走廊召开记者会。
雪总警长亲自下令捉潘俭伟
潘俭伟（右图）指出，当时他曾向警方表明自己是国会议员，但是警方却听而不闻，相反的却以粗暴手法逮捕他，更在逮捕过程不惜撕破衣服与殴打他。
他向记者转述，当时大约200名集会者聚集在八打灵再也市政局前的公园，眼看警方就要行动，集会召集者于是演词中清楚表明要提早解散，避免集会者遭逮捕。之后他们高唱国歌作为集会的尾声，但是当他们唱到“Rahmat Bahagia”时，警方就靠近人群。
潘俭伟表示，当镇暴队走入人群时，雪州行政议员刘天球趋前欲与负责警官谈判，要求多一些时间解散人群，而他也往前走以了解谈判的进展。
“就在我走去前面寻找刘天球时，我看到雪州总警长卡立，他向我大喊‘你为什么在这里？为什么你不解散’，我还来不及说任何话，他就表示‘抓起来’。”
称警员以膝盖撞腹部后踢脚
“于是两个人走来分别捉住我的双臂，开始把我推向约30尺外的警察卡车，我向他们喊说‘我会自己走，你们不需要粗暴’，就在我这么说时，他们推得更用力。”
“然后不知为何他们决定撕破我的衣服，一人一边拉扯我的衣服，把它撕破了，我不明白为何他们需要这么做，整晚我都啼笑皆非。”
虽然在警局内彻夜未眠，但这名年轻议员还有心情开玩笑，“纽扣全都掉了，如果你们昨晚有拍到我的照片，我看起来相当性感”。
“他们撕破衣服后，我告诉他们不需要粗暴，我自己会走。然后在我前面的三人向我冲过来，一人用膝盖撞向我的腹部，另一人尝试踢我的脚，不过没有踢中。接着我被抛进卡车后面，再被硬推进卡车，虽然我说你们不用推我，我可以自己爬上卡车。”
坚持警方未发出警告就捉人
潘俭伟驳斥雪州总警长卡立指警方是在多次发出警告后才捉人的说法，他坚称，聚集在市政局前公园的人群，完全没有听到警方在逮捕前发出任何警告。
这场原定在晚间9点开始的烛光会是在八打灵再也阿马广场（Amcorp Mall）对面的市政局体育场进行，断断续续进行了一个多小时，目的是要纪念去年11月10日在吉隆坡市区举办，吸引约4万人参与的公选盟万人选举改革大集会，并要求废除内安法令。
刘永山重复表明身份仍遭殃
另一方面，刘永山的经验更为骇人。当警方开始进入人群时，他走向一群站在警察卡车前的警员，表明他是该地区的州议员，要了解卡车上被捕者的情况。
“当时有5名警员，包括4名便衣警员与1名制服警员，其中一名便服警员向我大喊两声‘走开！’。我重复向他表明我是代议士，但是他不理睬我，要求我马上离开。我回应说我不是来惹事，并要求他礼貌地向一名代议士讲话。”
“他非常情绪化，失去耐性，然后就拉我上卡车。我被硬推，脸颊更被打了两次。我尝试表明若警察要逮捕我，我可以自己走，完全不用强迫我，不幸的是警察并不理解我的话，反而挥拳殴打我的脸颊两次，导致我的嘴唇也受伤。”
打人警员没戴证件拒给名字
他补充说，殴打他的便衣警员当时并没有佩戴任何证件，他与刘天球较后在警局再次遇到这名警员，并趋前要求知道其姓名，但是对方不理会就离开。
在冲突中弄丢眼镜与摩多头盔的刘永山较后被扣留在八打灵再也警区总部时，于凌晨4点半报警投诉警方使用暴力，“我保留起诉警方要求赔偿的权利”。潘俭伟也打算报警追究此事。
刘永山强调自己由始至终不曾挑衅警方，他形容警方的行动“野蛮与激烈”，“完全没有尊重最基本的人权以及遵从逮捕民众的程序”。
力挺当今记者履行职责没错
对于警方逮捕《当今大马》录影记者苏克里，潘俭伟透露当时他曾向有关警官说情，力挺苏克里只是履行职务，不应被警方逮捕，但是后者无动于衷。
“如果他也被捕，这不就意味着当晚所有采访的记者都犯罪了吗？”
值得一提的是，虽然今早7点才获释，但是潘俭伟并没有因此缺席国会，他在早上10点于国会问答环节向政府发出第一道问题。昨晚也是这名新晋议员参政以来首次被捕。
两名在昨晚的公选盟烛光晚会上被捕的民主行动党议员，今日在国会现身说法，转述昨晚遭警方粗野逮捕与殴打的过程，并强烈谴责警方使用不必要的过度暴力来对付和平民众与代议士。
在这场冲突中，八打灵再也北区国会议员潘俭伟的橘色衬衫被警员撕破；甘榜东姑州议员刘永山的右脸颊则两次被警员挥拳殴打，留下明显的伤痕，其嘴唇也受伤。
两人今早在行动党秘书长林冠英、国会领袖林吉祥与该党其他议员的陪同下，于国会走廊召开记者会。
雪总警长亲自下令捉潘俭伟
潘俭伟（右图）指出，当时他曾向警方表明自己是国会议员，但是警方却听而不闻，相反的却以粗暴手法逮捕他，更在逮捕过程不惜撕破衣服与殴打他。
他向记者转述，当时大约200名集会者聚集在八打灵再也市政局前的公园，眼看警方就要行动，集会召集者于是演词中清楚表明要提早解散，避免集会者遭逮捕。之后他们高唱国歌作为集会的尾声，但是当他们唱到“Rahmat Bahagia”时，警方就靠近人群。
潘俭伟表示，当镇暴队走入人群时，雪州行政议员刘天球趋前欲与负责警官谈判，要求多一些时间解散人群，而他也往前走以了解谈判的进展。
“就在我走去前面寻找刘天球时，我看到雪州总警长卡立，他向我大喊‘你为什么在这里？为什么你不解散’，我还来不及说任何话，他就表示‘抓起来’。”
称警员以膝盖撞腹部后踢脚
“于是两个人走来分别捉住我的双臂，开始把我推向约30尺外的警察卡车，我向他们喊说‘我会自己走，你们不需要粗暴’，就在我这么说时，他们推得更用力。”
“然后不知为何他们决定撕破我的衣服，一人一边拉扯我的衣服，把它撕破了，我不明白为何他们需要这么做，整晚我都啼笑皆非。”
虽然在警局内彻夜未眠，但这名年轻议员还有心情开玩笑，“纽扣全都掉了，如果你们昨晚有拍到我的照片，我看起来相当性感”。
“他们撕破衣服后，我告诉他们不需要粗暴，我自己会走。然后在我前面的三人向我冲过来，一人用膝盖撞向我的腹部，另一人尝试踢我的脚，不过没有踢中。接着我被抛进卡车后面，再被硬推进卡车，虽然我说你们不用推我，我可以自己爬上卡车。”
坚持警方未发出警告就捉人
潘俭伟驳斥雪州总警长卡立指警方是在多次发出警告后才捉人的说法，他坚称，聚集在市政局前公园的人群，完全没有听到警方在逮捕前发出任何警告。
这场原定在晚间9点开始的烛光会是在八打灵再也阿马广场（Amcorp Mall）对面的市政局体育场进行，断断续续进行了一个多小时，目的是要纪念去年11月10日在吉隆坡市区举办，吸引约4万人参与的公选盟万人选举改革大集会，并要求废除内安法令。
刘永山重复表明身份仍遭殃
另一方面，刘永山的经验更为骇人。当警方开始进入人群时，他走向一群站在警察卡车前的警员，表明他是该地区的州议员，要了解卡车上被捕者的情况。
“当时有5名警员，包括4名便衣警员与1名制服警员，其中一名便服警员向我大喊两声‘走开！’。我重复向他表明我是代议士，但是他不理睬我，要求我马上离开。我回应说我不是来惹事，并要求他礼貌地向一名代议士讲话。”
“他非常情绪化，失去耐性，然后就拉我上卡车。我被硬推，脸颊更被打了两次。我尝试表明若警察要逮捕我，我可以自己走，完全不用强迫我，不幸的是警察并不理解我的话，反而挥拳殴打我的脸颊两次，导致我的嘴唇也受伤。”
打人警员没戴证件拒给名字
他补充说，殴打他的便衣警员当时并没有佩戴任何证件，他与刘天球较后在警局再次遇到这名警员，并趋前要求知道其姓名，但是对方不理会就离开。
在冲突中弄丢眼镜与摩多头盔的刘永山较后被扣留在八打灵再也警区总部时，于凌晨4点半报警投诉警方使用暴力，“我保留起诉警方要求赔偿的权利”。潘俭伟也打算报警追究此事。
刘永山强调自己由始至终不曾挑衅警方，他形容警方的行动“野蛮与激烈”，“完全没有尊重最基本的人权以及遵从逮捕民众的程序”。
力挺当今记者履行职责没错
对于警方逮捕《当今大马》录影记者苏克里，潘俭伟透露当时他曾向有关警官说情，力挺苏克里只是履行职务，不应被警方逮捕，但是后者无动于衷。
“如果他也被捕，这不就意味着当晚所有采访的记者都犯罪了吗？”
值得一提的是，虽然今早7点才获释，但是潘俭伟并没有因此缺席国会，他在早上10点于国会问答环节向政府发出第一道问题。昨晚也是这名新晋议员参政以来首次被捕。
'We cannot trust PAS'
Source Malaysiakini
Letter by Arvin Kalam Pereira
PAS' track record since the March 8 election and its recent position with regards to the appointment of Low Siew Moi as acting CEO of PKNS has shown up the true racial character of the party.
Just after the election, based on some flimsy racial and religious arguments, PAS objected to the proposal by PKR and DAP to appoint a non-Malay as deputy menteri besar both in Perak and Selangor.
This was followed by PAS-led Kedah barring women from performing in public - an act that went against PAS' own election manifesto.
If one were to describe this breach of its election manifesto as a serious breach of ethics by PAS, it pales in significance to the top secret rendezvous PAS had with Umno in the wee hours after the March 8 election in what some analysts describe as an attempt by PAS to form a coalition with Umno in Perak and Selangor.
This can only be described as a stab in the back by PAS to its other coalition partners - an act more vile than the stabbing of Julius Caesar by Brutus and company. Now, to take the cake, PAS has publicly objected to the appointment of Low as acting CEO of PKNS - an objection based solely and only on the basis of her race - so said PAS Selangor after acknowledging that her capabilities were not in question.
These developments pose two fundamental questions to all Malaysians. The first question is can PAS be trusted in office after gaining power at the federal level in the next elections as part of Pakatan Rakyat? The second question is, is PAS a replica of Umno?
Now, the answer to the first question, can PAS be trusted, has to be a resounding ‘no’. The reasons are many fold. For one, how can you trust a party that says one thing during an election and does another thing after that?
In rally after rally, PAS said PAS Untuk Semua (PAS for everyone) meaning all Malaysians. Is Low not a Malaysian? How could you say you represent all and then say a Chinese cannot be an acting CEO - even for a year?
Blatant racialism from a party that says all humans have come from one source - Adam and Eve. All these statements after so many non-Malays had voted for PAS even in non-Malay constituencies like Kota Raja based on the promise to us that PAS is ‘for all Malaysians’.
Now to the second question, is PAS a replica of Umno? To answer this, one has to give a resounding ‘yes’. The reason? PAS believes in Ketuanan Melayu and so does Umno.
Umno is against Low’s appointment, PAS is against Low’s appointment too. Umno says ‘no’ to a non-Malay as deputy menteri besar, PAS says the same too. No one was in talks with Umno, not DAP, not PKR. Only PAS.
They are still in secret talks. Umno files trumped-up charges against Anwar and PAS was still in talks with Umno. Umno said that the Sept 16 takeover was a ‘mirage’, Terengganu PAS said the same. We can go on and on.
So where does this leave us, we Chinese, Indians and Malays who had voted for PAS on its promise that it has matured into a moderate and ethical multi-racial Islamic party. We need to send a loud and clear message on our dissatisfaction to PKR and to a lesser degree DAP as well as to all Malaysian voters
Message number one - do not place PAS candidates in large multi-racial constituencies like Kota Raja or else we will spoil our votes in the next election and BN will end up as the winners. Place PAS in areas that have 70 to 80% Malays and let them try their luck there.
PKR must contest all the multi-racial seats. We cannot trust PAS. After the election they may hold us to ransom and dictate that their support to the formation of a government will only be on the basis of an Islamic state with hudud laws - irrespective of what their election manifesto says.
They have proven to us that they cannot be trusted. This will indeed happen. If PKR and DAP refuse their demands, they may just team up with Umno and form the government - another betrayal.
Message number two - do not give PAS enough seats in the next elections for them to be able to become a ‘king-maker’ as Abdul Hadi Awang has indicated. If Pakatan members end up giving in then it is for the electorate to reject PAS in many areas so that they do not become a ‘king-maker’.
Finally, large sections of the Indian community are following PAS with the same blind allegiance that they showed to MIC and Samy Vellu in the past. They are in complete denial of what PAS is doing.
PAS is craftily exploiting this blind loyalty of the Indians and giving them peanuts by making them member of PAS Supporters Club. A failure to open the eyes of these Indians would result in the community being marginalised again and being left behind for another 50 more years - this time for supporting PAS
If PAS if ‘for all’ as they claim, why not allow Indians and Chinese as full members of the party like the Malays and Muslims? The proof of the pudding is in the eating - the proof of inclusiveness lies in Indians and Chinese being made full members of PAS and being able to stand for PAS party elections and being able to vote. Anything less is just a sham.
So the answer to the ultimate question, is PAS actually Umno with an Islamic tag? The answer is ‘yes’ but with the ‘but’ - but it is worse than Umno. Why? Because Umno does not camouflage itself, it says what it stands for.
PAS on the other hand says one things and does another thing. PAS is a political chameleon, nothing more nothing less. A party that is just like the lizard that changes its colour to suit its environment - just to survive.
Letter by Arvin Kalam Pereira
PAS' track record since the March 8 election and its recent position with regards to the appointment of Low Siew Moi as acting CEO of PKNS has shown up the true racial character of the party.
Just after the election, based on some flimsy racial and religious arguments, PAS objected to the proposal by PKR and DAP to appoint a non-Malay as deputy menteri besar both in Perak and Selangor.
This was followed by PAS-led Kedah barring women from performing in public - an act that went against PAS' own election manifesto.
If one were to describe this breach of its election manifesto as a serious breach of ethics by PAS, it pales in significance to the top secret rendezvous PAS had with Umno in the wee hours after the March 8 election in what some analysts describe as an attempt by PAS to form a coalition with Umno in Perak and Selangor.
This can only be described as a stab in the back by PAS to its other coalition partners - an act more vile than the stabbing of Julius Caesar by Brutus and company. Now, to take the cake, PAS has publicly objected to the appointment of Low as acting CEO of PKNS - an objection based solely and only on the basis of her race - so said PAS Selangor after acknowledging that her capabilities were not in question.
These developments pose two fundamental questions to all Malaysians. The first question is can PAS be trusted in office after gaining power at the federal level in the next elections as part of Pakatan Rakyat? The second question is, is PAS a replica of Umno?
Now, the answer to the first question, can PAS be trusted, has to be a resounding ‘no’. The reasons are many fold. For one, how can you trust a party that says one thing during an election and does another thing after that?
In rally after rally, PAS said PAS Untuk Semua (PAS for everyone) meaning all Malaysians. Is Low not a Malaysian? How could you say you represent all and then say a Chinese cannot be an acting CEO - even for a year?
Blatant racialism from a party that says all humans have come from one source - Adam and Eve. All these statements after so many non-Malays had voted for PAS even in non-Malay constituencies like Kota Raja based on the promise to us that PAS is ‘for all Malaysians’.
Now to the second question, is PAS a replica of Umno? To answer this, one has to give a resounding ‘yes’. The reason? PAS believes in Ketuanan Melayu and so does Umno.
Umno is against Low’s appointment, PAS is against Low’s appointment too. Umno says ‘no’ to a non-Malay as deputy menteri besar, PAS says the same too. No one was in talks with Umno, not DAP, not PKR. Only PAS.
They are still in secret talks. Umno files trumped-up charges against Anwar and PAS was still in talks with Umno. Umno said that the Sept 16 takeover was a ‘mirage’, Terengganu PAS said the same. We can go on and on.
So where does this leave us, we Chinese, Indians and Malays who had voted for PAS on its promise that it has matured into a moderate and ethical multi-racial Islamic party. We need to send a loud and clear message on our dissatisfaction to PKR and to a lesser degree DAP as well as to all Malaysian voters
Message number one - do not place PAS candidates in large multi-racial constituencies like Kota Raja or else we will spoil our votes in the next election and BN will end up as the winners. Place PAS in areas that have 70 to 80% Malays and let them try their luck there.
PKR must contest all the multi-racial seats. We cannot trust PAS. After the election they may hold us to ransom and dictate that their support to the formation of a government will only be on the basis of an Islamic state with hudud laws - irrespective of what their election manifesto says.
They have proven to us that they cannot be trusted. This will indeed happen. If PKR and DAP refuse their demands, they may just team up with Umno and form the government - another betrayal.
Message number two - do not give PAS enough seats in the next elections for them to be able to become a ‘king-maker’ as Abdul Hadi Awang has indicated. If Pakatan members end up giving in then it is for the electorate to reject PAS in many areas so that they do not become a ‘king-maker’.
Finally, large sections of the Indian community are following PAS with the same blind allegiance that they showed to MIC and Samy Vellu in the past. They are in complete denial of what PAS is doing.
PAS is craftily exploiting this blind loyalty of the Indians and giving them peanuts by making them member of PAS Supporters Club. A failure to open the eyes of these Indians would result in the community being marginalised again and being left behind for another 50 more years - this time for supporting PAS
If PAS if ‘for all’ as they claim, why not allow Indians and Chinese as full members of the party like the Malays and Muslims? The proof of the pudding is in the eating - the proof of inclusiveness lies in Indians and Chinese being made full members of PAS and being able to stand for PAS party elections and being able to vote. Anything less is just a sham.
So the answer to the ultimate question, is PAS actually Umno with an Islamic tag? The answer is ‘yes’ but with the ‘but’ - but it is worse than Umno. Why? Because Umno does not camouflage itself, it says what it stands for.
PAS on the other hand says one things and does another thing. PAS is a political chameleon, nothing more nothing less. A party that is just like the lizard that changes its colour to suit its environment - just to survive.
MCAC - 2 reasons why no confidence in Abdullah's last fling with anti-corruption reform
Source MP KitSiang
The Prime Minister, Datuk Seri Abdullah Ahmad Badawi announced at the National Integrity Convention in Kuching yesterday that the Cabinet had endorsed the formation of the Malaysian Commission on Anti-Corruption (MCAC) and that the MCAC Bill will be passed at the current meeting of Parliament to replace the Anti-Corruption Act 1997.
He said the MCAC is modeled after Hong Kong’s Independent Commission on Anti-Corruption and New South Wales’ Independent Commission Against Corruption, “which are among the best anti-corruption agencies in the world”.
I have no confidence that Abdullah has the political will to carry out meaningful anti-corruption reforms, and that the MCAC will not end up as another toothless tiger for anti-corruption like the Human Rights Commission (Suhakam) with its statutory duty to promote and protect human rights!
My lack of confidence that Abdullah is capable of one final fling with a meaningful institutional reform before he ends his hapless five-year tenure as the fifth Prime Minister of Malaysia is supported by at least three reasons:
1. The setting for Abdullah’s “important” announcement yesterday – the National Integrity Convention in Kuching. On stage applauding Abdullah’s announcement to fight corruption were leaders responsible for Malaysia’s relentless plunge, year after year, in international rankings on anti-corruption – whether Transparency International Corruption Perception Index from No. 37 in 2003 to No. 47 in 2008 or the Hong Kong-based Political and Economic Risk Consultancy (PERC) annual corruption ranking, with Malaysia in 2008 placed No. 6 in Asia and getting the worst score of 6.37 (in a grading system with zero as the best possible score and 10 as the worst) since 1996. Malaysia was ranked No. 4 in Asia with a score of 5 in 1996!
2. Abdullah’s stance of fight against corruption – which has been all talk but no walk – is not echoed or supported by other Barisan Nasional leaders or Cabinet Ministers. I spoke on the corruption issue in the 2009 budget committee debate on the Prime Minister’s Department in Parliament on Wednesday, but the Minister in the Prime Minister’s Department, Datuk Seri Nazri Aziz studiously avoided answering issues I raised about corruption in his one-hour reply on Thursday. This meant two things: firstly, lack of real political interest, will or commitment to fight corruption and secondly, defensive mentality on the issue, particularly with the serious problem of corruption of money politics in the ongoing Umno party elections.
3. Worst case of corruption and money politics in UMNO elections. Nobody dared to respond to my challenge in Parliament on Wednesday to stand up and deny my charge that the current Umno party elections is shaping up to be the worst case of corruption and money politics in the nation’s history.
I am not the only making this charge as top Umno leaders have publicly confessed to this, like Tengku Ahmad Rithaudeen, Umno disciplinary board charman, who has virtually thrown up his hands in despair, declaring: “It seems to be getting worse with every party election…We are trying our best, but it seems we can’t deal with it completely. It is now rooted to the core.” And Tengku Razaleigh Hamzah’s shocking “No money, no talk” expose, why he could not get even a second nomination to contest for Umno Presidency because he refused to respond to overtures and bribe delegates in return for their votes!
The Prime Minister, Datuk Seri Abdullah Ahmad Badawi announced at the National Integrity Convention in Kuching yesterday that the Cabinet had endorsed the formation of the Malaysian Commission on Anti-Corruption (MCAC) and that the MCAC Bill will be passed at the current meeting of Parliament to replace the Anti-Corruption Act 1997.
He said the MCAC is modeled after Hong Kong’s Independent Commission on Anti-Corruption and New South Wales’ Independent Commission Against Corruption, “which are among the best anti-corruption agencies in the world”.
I have no confidence that Abdullah has the political will to carry out meaningful anti-corruption reforms, and that the MCAC will not end up as another toothless tiger for anti-corruption like the Human Rights Commission (Suhakam) with its statutory duty to promote and protect human rights!
My lack of confidence that Abdullah is capable of one final fling with a meaningful institutional reform before he ends his hapless five-year tenure as the fifth Prime Minister of Malaysia is supported by at least three reasons:
1. The setting for Abdullah’s “important” announcement yesterday – the National Integrity Convention in Kuching. On stage applauding Abdullah’s announcement to fight corruption were leaders responsible for Malaysia’s relentless plunge, year after year, in international rankings on anti-corruption – whether Transparency International Corruption Perception Index from No. 37 in 2003 to No. 47 in 2008 or the Hong Kong-based Political and Economic Risk Consultancy (PERC) annual corruption ranking, with Malaysia in 2008 placed No. 6 in Asia and getting the worst score of 6.37 (in a grading system with zero as the best possible score and 10 as the worst) since 1996. Malaysia was ranked No. 4 in Asia with a score of 5 in 1996!
2. Abdullah’s stance of fight against corruption – which has been all talk but no walk – is not echoed or supported by other Barisan Nasional leaders or Cabinet Ministers. I spoke on the corruption issue in the 2009 budget committee debate on the Prime Minister’s Department in Parliament on Wednesday, but the Minister in the Prime Minister’s Department, Datuk Seri Nazri Aziz studiously avoided answering issues I raised about corruption in his one-hour reply on Thursday. This meant two things: firstly, lack of real political interest, will or commitment to fight corruption and secondly, defensive mentality on the issue, particularly with the serious problem of corruption of money politics in the ongoing Umno party elections.
3. Worst case of corruption and money politics in UMNO elections. Nobody dared to respond to my challenge in Parliament on Wednesday to stand up and deny my charge that the current Umno party elections is shaping up to be the worst case of corruption and money politics in the nation’s history.
I am not the only making this charge as top Umno leaders have publicly confessed to this, like Tengku Ahmad Rithaudeen, Umno disciplinary board charman, who has virtually thrown up his hands in despair, declaring: “It seems to be getting worse with every party election…We are trying our best, but it seems we can’t deal with it completely. It is now rooted to the core.” And Tengku Razaleigh Hamzah’s shocking “No money, no talk” expose, why he could not get even a second nomination to contest for Umno Presidency because he refused to respond to overtures and bribe delegates in return for their votes!
Bali bombers executed
Source TheAge
The three Bali bombers on death row have been executed by firing squad.
Imam Samudra and brothers Amrozi and Mukhlas were shot to death by separate firing squads at 12.15am Indonesian time, an Indonesian Government spokesman has confirmed.
- Bombers defiant to the end
- Funerals expected today
- 'Credible threat' of reprisal attacks
The executions come six years after the Kuta nightclub explosions that killed 202 people, including 88 Australians.
Family members of the bombers were informed of the execution by Ali Fauzi, the brother of Mukhlas and Amrozi.
Ali Fauzi headed to the prison island of Nusakambangan by boat about 5.30am Sydney time to oversee the religious rights on the bodies.
He sent a text message to relatives in Arabic saying "they are with the Almighty''.
A source in the prison told Agence France-Presse they shouted "Allahu Akbar'' ("God is great") as they were escorted out of their isolation cells by paramilitary police just before their executions.
In a statement on behalf of the family of Mukhlas and Amrozi, elder brother Chozin said: "We hope the spirit of my brothers Amrozi and Ali Ghufron (Mukhlas) will be taken by green birds to paradise."
The bullets will be removed from the bodies and autopsies performed before the bodies are cleaned and wrapped in traditional Muslim cloth in preparartion for burial.
The men's bodies are expected to be flown by helicopter today from the prison island to their home towns.
Amrozi and Mukhlas are from the small village Tenggulun in East Java. Imam Samudra comes from Serang in West Java.
The bombers' funerals are expected to be held within hours of their bodies arriving home.
The presence of police has been stepped up across Indonesia amid threats of attacks in Bali and in Jakarta shopping malls. Most terrorism analysts believe it's unlikely there will be a major attack but agree there is a risk of mob violence and clashes involving hardline supporters of the trio.
The Federal Government has issued an updated travel warning for Bali, saying it has 'credible' information about the possibility of reprisal attacks for the executions.
The executions follow years of legal challenges to the death sentences, which were handed down in 2003.
Right up until their final days, the killers showed no remorse and used the media to claim to be warriors of Islam and predict a wave of attacks against Westerners following their deaths.
Mukhlas was convicted of approving, inciting, financing and carrying out the bombings, while his younger brother Amrozi bought the van and a ton of chemicals used in the explosion, and attended planning sessions for the attacks.
Samudra was the operational field commander for the bombings.
In the lead-up to the executions, survivors of the attacks and family members of those lost had mixed feelings about the trio being sentenced to death.
Some felt the bombers' deaths would bring closure for still-grieving relatives, while others felt it would elevate Amrozi, Mukhlas and Imam Samudra to martyrdom.
David "Spike" Stewart, whose son Anthony died in the nightclub attacks, has said he would be happy to pull the trigger on the firing squad rifle.
"I'd check the rifle to make sure I wasn't given the blank," he said earlier this year.
Leanne Woodgate, from Port Melbourne, who was badly burnt with her sister in Paddy's Bar, said: "I'll believe it when it actually happens. I hope it's soon ... it will help because they ruined my life."
But Sydney man John Mavroudis, whose son David was one of six Coogee Dolphins players killed, said he "couldn't care less" about the bombers. "I don't give a damn about them really ... we just try and get on with our lives."
The three Bali bombers on death row have been executed by firing squad.
Imam Samudra and brothers Amrozi and Mukhlas were shot to death by separate firing squads at 12.15am Indonesian time, an Indonesian Government spokesman has confirmed.
- Bombers defiant to the end
- Funerals expected today
- 'Credible threat' of reprisal attacks
The executions come six years after the Kuta nightclub explosions that killed 202 people, including 88 Australians.
Family members of the bombers were informed of the execution by Ali Fauzi, the brother of Mukhlas and Amrozi.
Ali Fauzi headed to the prison island of Nusakambangan by boat about 5.30am Sydney time to oversee the religious rights on the bodies.
He sent a text message to relatives in Arabic saying "they are with the Almighty''.
A source in the prison told Agence France-Presse they shouted "Allahu Akbar'' ("God is great") as they were escorted out of their isolation cells by paramilitary police just before their executions.
In a statement on behalf of the family of Mukhlas and Amrozi, elder brother Chozin said: "We hope the spirit of my brothers Amrozi and Ali Ghufron (Mukhlas) will be taken by green birds to paradise."
The bullets will be removed from the bodies and autopsies performed before the bodies are cleaned and wrapped in traditional Muslim cloth in preparartion for burial.
The men's bodies are expected to be flown by helicopter today from the prison island to their home towns.
Amrozi and Mukhlas are from the small village Tenggulun in East Java. Imam Samudra comes from Serang in West Java.
The bombers' funerals are expected to be held within hours of their bodies arriving home.
The presence of police has been stepped up across Indonesia amid threats of attacks in Bali and in Jakarta shopping malls. Most terrorism analysts believe it's unlikely there will be a major attack but agree there is a risk of mob violence and clashes involving hardline supporters of the trio.
The Federal Government has issued an updated travel warning for Bali, saying it has 'credible' information about the possibility of reprisal attacks for the executions.
The executions follow years of legal challenges to the death sentences, which were handed down in 2003.
Right up until their final days, the killers showed no remorse and used the media to claim to be warriors of Islam and predict a wave of attacks against Westerners following their deaths.
Mukhlas was convicted of approving, inciting, financing and carrying out the bombings, while his younger brother Amrozi bought the van and a ton of chemicals used in the explosion, and attended planning sessions for the attacks.
Samudra was the operational field commander for the bombings.
In the lead-up to the executions, survivors of the attacks and family members of those lost had mixed feelings about the trio being sentenced to death.
Some felt the bombers' deaths would bring closure for still-grieving relatives, while others felt it would elevate Amrozi, Mukhlas and Imam Samudra to martyrdom.
David "Spike" Stewart, whose son Anthony died in the nightclub attacks, has said he would be happy to pull the trigger on the firing squad rifle.
"I'd check the rifle to make sure I wasn't given the blank," he said earlier this year.
Leanne Woodgate, from Port Melbourne, who was badly burnt with her sister in Paddy's Bar, said: "I'll believe it when it actually happens. I hope it's soon ... it will help because they ruined my life."
But Sydney man John Mavroudis, whose son David was one of six Coogee Dolphins players killed, said he "couldn't care less" about the bombers. "I don't give a damn about them really ... we just try and get on with our lives."
Lives and crimes of the Bali bombers
Source TheAge
The lives and crimes of three Bali bombers, sentenced to die for their roles in the 2002 Bali nightclub bombings.
Mukhlas, alias Ali Ghufron, alias Sofwan, 48
Mukhlas, from Lamongan district in East Java, is the eldest of the three Islamic militants sentenced to die over the attacks.
He was convicted of approving, inciting, financing and carrying out the bombings, which killed 202 people including 88 Australians, and was sentenced to die in late 2003.
His younger brother Amrozi is also facing death for aiding the attacks.
During his trial, Mukhlas said he knew al-Qaeda leader Osama bin Laden "well" and named his sixth son in his honour.
He had a long relationship with Abu Bakar Bashir, the alleged spiritual head of the al-Qaeda linked terrorist network Jemaah Islamiah.
At the age of 22, Mukhlas joined Bashir's extremist Islamic boarding school in Central Java, working there as a teacher, and followed Bashir to Malaysia four years later.
A fluent Arabic speaker, Mukhlas trained in bin Laden's training camps in Afghanistan in the late 1980s.
In 2001, his service to Jemaah Islamiah was rewarded when he was made the group's operations chief.
In February 2002, he attended a meeting in Bangkok, Thailand, where plotters decided to target Indonesian tourist spots.
Samudra, also sentenced to die over the nightclub bombings, had proposed targeting Bali because it had large numbers of "white people" and Mukhlas approved the plan.
Mukhlas received $US30,500 from a Malaysian financier to help fund the bomb plot and distributed the funds among the group.
- Amrozi bin Nurhasyim, 46
Amrozi, Mukhlas' younger brother, was the fifth of 13 siblings and before he turned to terrorism worked as a mechanic in the Lamongan district.
He was convicted of buying the van and a tonne of chemicals used to carry out the Bali bombings, and of attending planning sessions for the attacks.
But he made a grave error when he used his own name to buy the van, leading to his arrest and death sentence.
Amrozi was dubbed the smiling assassin after he expressed glee during his trial for the carnage he had helped cause in Bali.
"I'm happy, why should I regret it," he told reporters covering the 2003 court proceedings.
- Abdul Aziz, alias Imam Samudra meaning "Ruler of the Seas", 38
Samudra, of the Serang district in West Java, was the operational field commander of the Bali bombings and along with Mukhlas and Amrozi was sentenced to die for his crimes.
A computer technician with at least six other aliases, he was the only Bali bomber with a university degree.
He planned the Bali attacks, recruited the team of suicide bombers from West Java and coordinated the preparation.
Police say he confessed to his role in the plot, but during his trial he denied any involvement, saying he travelled to Bali to set up an internet cafe and export business.
He also denied the existence of Jemaah Islamiah and the involvement of its alleged spiritual leader Abu Bakar Bashir. But he also expressed happiness that his "martyrdom" would bring him closer to god.
He penned an autobiography in jail, titled Me Against the Terrorist!, which recounted his school years in Java and his time fighting with the Mujahideen Islamic militant group in Afghanistan.
Samudra was also involved in the Christmas Eve bombings of nine Christian churches across Indonesia in 2000, which killed 19 people.
Police claim he used a laptop computer smuggled into his jail cell to help organise the second Bali bombings in 2005, which killed 20 people including four Australians.
Raja Petra Freed!
Source TheSTar
SHAH ALAM: Malaysia Today editor Raja Petra Raja Kamarudin succeeded in his bid to obtain a release order from his two-year detention under the Internal Security Act (ISA).
High Court judge Justice Syed Ahmad Helmy Syed Ahmad allowed the blogger’s habeas corpus application on Friday.
Justice Syed Ahmad also ordered for Raja Petra to be brought to the Shah Alam High Court before 4pm Friday for his immediate release.
Upon hearing the court decision, the crowd seated at the packed public gallery clapped and cheered.
This prompted the judge to tell the crowd that “this is a court of law”, which caused the court to be silent, albeit briefly.
The court erupted again with claps and shouts from the public gallery when the judge said that Raja Petra had to be brought to the court for his release on the same day.
At the outset of court proceedings, Justice Syed Ahmad ruled that the grounds for the detention order by Home Minister Datuk Seri Syed Hamid Albar for the blogger did not fall under the scope of Section 8(1) of the ISA.
Therefore, the judge said the Sept 22 detention order was unlawful.
Raja Petra was detained on Sept 12 on the grounds that he had intentionally and recklessly published articles which were critical and insulted Muslims, the purity of Islam and the personality of Prophet Muhammad.
It was said to have caused anxiety and anger among Muslims in the country.
He had also allegedly published defamatory articles concerning national leaders which could affect public order and prejudice national security.
He was said to have published the said articles in the Malaysia Today news portal between Jan 16 and Sept 12 this year.
The Home Minister was named as the sole respondent in the application.
Raja Petra was taken to the Kamunting detention camp on Sept 23.
The minister had issued the order against the blogger under Section 8 of the same Act.
However, the judge said Section 8 of the same Act is constitutional as it falls within the ambit of the Article 149 of the Federal Constitution.
(Article 149 is regarding actions to be taken against anyone who participates in any activities which could pose a threat to national security even if it violates their fundamental liberties).
“I find that there is no merit by the counsel’s argument that Section 8 is unconstitutional as it does not fall under Article 149,” he said.
“Section 8 can only be reviewed under procedural non-compliance as provided under Section 8B(1) of the same Act,” he added.
On lead counsel Malik Imtiaz Sarwar’s argument that the order was mala fide (in bad faith), Justice Syed Ahmad said:
“Mala fide is not procedural non-compliance under the ISA,” he said.
The judge said the court only has the power for judicial review for matters which violated the procedures under the ISA.
The judge also commented that the ISA was promulgated not only to counter communism or subversive activities but also to halt any activities which caused a threat to national security.
Outside the court later, Raja Petra’s wife Marina Lee Abdullah said she was very happy with his impending release.
“I am glad that everything turned out well as I had hoped. It is a fantastic breakthrough. “I hope there will be a change in the country,” said Marina, who was accompanied by daughters Sarah, 19, and Suraya, 34.
SHAH ALAM: Malaysia Today editor Raja Petra Raja Kamarudin succeeded in his bid to obtain a release order from his two-year detention under the Internal Security Act (ISA).
High Court judge Justice Syed Ahmad Helmy Syed Ahmad allowed the blogger’s habeas corpus application on Friday.
Justice Syed Ahmad also ordered for Raja Petra to be brought to the Shah Alam High Court before 4pm Friday for his immediate release.
Upon hearing the court decision, the crowd seated at the packed public gallery clapped and cheered.
This prompted the judge to tell the crowd that “this is a court of law”, which caused the court to be silent, albeit briefly.
The court erupted again with claps and shouts from the public gallery when the judge said that Raja Petra had to be brought to the court for his release on the same day.
At the outset of court proceedings, Justice Syed Ahmad ruled that the grounds for the detention order by Home Minister Datuk Seri Syed Hamid Albar for the blogger did not fall under the scope of Section 8(1) of the ISA.
Therefore, the judge said the Sept 22 detention order was unlawful.
Raja Petra was detained on Sept 12 on the grounds that he had intentionally and recklessly published articles which were critical and insulted Muslims, the purity of Islam and the personality of Prophet Muhammad.
It was said to have caused anxiety and anger among Muslims in the country.
He had also allegedly published defamatory articles concerning national leaders which could affect public order and prejudice national security.
He was said to have published the said articles in the Malaysia Today news portal between Jan 16 and Sept 12 this year.
The Home Minister was named as the sole respondent in the application.
Raja Petra was taken to the Kamunting detention camp on Sept 23.
The minister had issued the order against the blogger under Section 8 of the same Act.
However, the judge said Section 8 of the same Act is constitutional as it falls within the ambit of the Article 149 of the Federal Constitution.
(Article 149 is regarding actions to be taken against anyone who participates in any activities which could pose a threat to national security even if it violates their fundamental liberties).
“I find that there is no merit by the counsel’s argument that Section 8 is unconstitutional as it does not fall under Article 149,” he said.
“Section 8 can only be reviewed under procedural non-compliance as provided under Section 8B(1) of the same Act,” he added.
On lead counsel Malik Imtiaz Sarwar’s argument that the order was mala fide (in bad faith), Justice Syed Ahmad said:
“Mala fide is not procedural non-compliance under the ISA,” he said.
The judge said the court only has the power for judicial review for matters which violated the procedures under the ISA.
The judge also commented that the ISA was promulgated not only to counter communism or subversive activities but also to halt any activities which caused a threat to national security.
Outside the court later, Raja Petra’s wife Marina Lee Abdullah said she was very happy with his impending release.
“I am glad that everything turned out well as I had hoped. It is a fantastic breakthrough. “I hope there will be a change in the country,” said Marina, who was accompanied by daughters Sarah, 19, and Suraya, 34.
Governemnt bans Hindraf for contravening Societies Act
Source TheStar
KUALA LUMPUR: The Hindu Rights Action Force (Hindraf) has been banned effective yesterday, said Home Minister Datuk Seri Syed Hamid Albar.
In a statement yesterday, Syed Hamid said the decision to declare Hindraf illegal was made as a result of investigations by the Registrar of Societies (ROS).
“The ministry found the organisation’s activities contravened the Societies Act 1966 and if left unchecked, the organisation could pose a threat to public order, peace, security and morality in Malaysia,” he said, adding that even the sovereignty of the country and prevailing racial harmony would be jeopardised.
He made the declaration based on powers vested under Section 5(1) of the Societies Act.
Syed Hamid said Hindraf had the criteria of an organisation as it had filed an application to register with the ROS on Oct 16 last year.
Despite not getting approval, he said Hindraf had been organising illegal assemblies and inciting hatred among Malays and Indians.
“Hindraf also tried to get the support of foreign countries to pressure the Government to bow to its demands,” he said, adding that all these had affected the country’s image.
Ipoh Barat MP M. Kulasegaran said the decision was ridiculous and uncalled for, adding that he would move an emergency motion asking for an open debate in Parliament today.
“This is against the interest and aspirations of the Indian community that is seeking a more tolerant and fair Government,” he said, adding that Prime Minister Datuk Seri Abdullah Ahmad Badawi had agreed to hold a dialogue with Hindraf leaders but “nothing was done”.
Hindraf national coordinator, R.S. Thanenthiran said the ban was unfair as they had not committed any crime or broken any laws, adding that Syed Hamid could have done this in retaliation to the police reports Hindraf supporters lodged against him.
Thanenthiran said Hindraf chairman P. Waythamoorthy, who is in self-exile in Britain, had instructed coordinators to wait for a day before making further statements.
Coalition of Indian NGOs secretary-general Gunaraj George said that by banning Hindraf, Syed Hamid had rendered the Indian community voiceless, but said it would not dampen the spirit of its supporters.
“I know that their struggle will go on especially to free all those detained under the ISA.”
KUALA LUMPUR: The Hindu Rights Action Force (Hindraf) has been banned effective yesterday, said Home Minister Datuk Seri Syed Hamid Albar.
In a statement yesterday, Syed Hamid said the decision to declare Hindraf illegal was made as a result of investigations by the Registrar of Societies (ROS).
“The ministry found the organisation’s activities contravened the Societies Act 1966 and if left unchecked, the organisation could pose a threat to public order, peace, security and morality in Malaysia,” he said, adding that even the sovereignty of the country and prevailing racial harmony would be jeopardised.
He made the declaration based on powers vested under Section 5(1) of the Societies Act.
Syed Hamid said Hindraf had the criteria of an organisation as it had filed an application to register with the ROS on Oct 16 last year.
Despite not getting approval, he said Hindraf had been organising illegal assemblies and inciting hatred among Malays and Indians.
“Hindraf also tried to get the support of foreign countries to pressure the Government to bow to its demands,” he said, adding that all these had affected the country’s image.
Ipoh Barat MP M. Kulasegaran said the decision was ridiculous and uncalled for, adding that he would move an emergency motion asking for an open debate in Parliament today.
“This is against the interest and aspirations of the Indian community that is seeking a more tolerant and fair Government,” he said, adding that Prime Minister Datuk Seri Abdullah Ahmad Badawi had agreed to hold a dialogue with Hindraf leaders but “nothing was done”.
Hindraf national coordinator, R.S. Thanenthiran said the ban was unfair as they had not committed any crime or broken any laws, adding that Syed Hamid could have done this in retaliation to the police reports Hindraf supporters lodged against him.
Thanenthiran said Hindraf chairman P. Waythamoorthy, who is in self-exile in Britain, had instructed coordinators to wait for a day before making further statements.
Coalition of Indian NGOs secretary-general Gunaraj George said that by banning Hindraf, Syed Hamid had rendered the Indian community voiceless, but said it would not dampen the spirit of its supporters.
“I know that their struggle will go on especially to free all those detained under the ISA.”
Governemnt bans Hindraf for contravening Societies Act
Source TheStar
KUALA LUMPUR: The Hindu Rights Action Force (Hindraf) has been banned effective yesterday, said Home Minister Datuk Seri Syed Hamid Albar.
In a statement yesterday, Syed Hamid said the decision to declare Hindraf illegal was made as a result of investigations by the Registrar of Societies (ROS).
“The ministry found the organisation’s activities contravened the Societies Act 1966 and if left unchecked, the organisation could pose a threat to public order, peace, security and morality in Malaysia,” he said, adding that even the sovereignty of the country and prevailing racial harmony would be jeopardised.
He made the declaration based on powers vested under Section 5(1) of the Societies Act.
Syed Hamid said Hindraf had the criteria of an organisation as it had filed an application to register with the ROS on Oct 16 last year.
Despite not getting approval, he said Hindraf had been organising illegal assemblies and inciting hatred among Malays and Indians.
“Hindraf also tried to get the support of foreign countries to pressure the Government to bow to its demands,” he said, adding that all these had affected the country’s image.
Ipoh Barat MP M. Kulasegaran said the decision was ridiculous and uncalled for, adding that he would move an emergency motion asking for an open debate in Parliament today.
“This is against the interest and aspirations of the Indian community that is seeking a more tolerant and fair Government,” he said, adding that Prime Minister Datuk Seri Abdullah Ahmad Badawi had agreed to hold a dialogue with Hindraf leaders but “nothing was done”.
Hindraf national coordinator, R.S. Thanenthiran said the ban was unfair as they had not committed any crime or broken any laws, adding that Syed Hamid could have done this in retaliation to the police reports Hindraf supporters lodged against him.
Thanenthiran said Hindraf chairman P. Waythamoorthy, who is in self-exile in Britain, had instructed coordinators to wait for a day before making further statements.
Coalition of Indian NGOs secretary-general Gunaraj George said that by banning Hindraf, Syed Hamid had rendered the Indian community voiceless, but said it would not dampen the spirit of its supporters.
“I know that their struggle will go on especially to free all those detained under the ISA.”
KUALA LUMPUR: The Hindu Rights Action Force (Hindraf) has been banned effective yesterday, said Home Minister Datuk Seri Syed Hamid Albar.
In a statement yesterday, Syed Hamid said the decision to declare Hindraf illegal was made as a result of investigations by the Registrar of Societies (ROS).
“The ministry found the organisation’s activities contravened the Societies Act 1966 and if left unchecked, the organisation could pose a threat to public order, peace, security and morality in Malaysia,” he said, adding that even the sovereignty of the country and prevailing racial harmony would be jeopardised.
He made the declaration based on powers vested under Section 5(1) of the Societies Act.
Syed Hamid said Hindraf had the criteria of an organisation as it had filed an application to register with the ROS on Oct 16 last year.
Despite not getting approval, he said Hindraf had been organising illegal assemblies and inciting hatred among Malays and Indians.
“Hindraf also tried to get the support of foreign countries to pressure the Government to bow to its demands,” he said, adding that all these had affected the country’s image.
Ipoh Barat MP M. Kulasegaran said the decision was ridiculous and uncalled for, adding that he would move an emergency motion asking for an open debate in Parliament today.
“This is against the interest and aspirations of the Indian community that is seeking a more tolerant and fair Government,” he said, adding that Prime Minister Datuk Seri Abdullah Ahmad Badawi had agreed to hold a dialogue with Hindraf leaders but “nothing was done”.
Hindraf national coordinator, R.S. Thanenthiran said the ban was unfair as they had not committed any crime or broken any laws, adding that Syed Hamid could have done this in retaliation to the police reports Hindraf supporters lodged against him.
Thanenthiran said Hindraf chairman P. Waythamoorthy, who is in self-exile in Britain, had instructed coordinators to wait for a day before making further statements.
Coalition of Indian NGOs secretary-general Gunaraj George said that by banning Hindraf, Syed Hamid had rendered the Indian community voiceless, but said it would not dampen the spirit of its supporters.
“I know that their struggle will go on especially to free all those detained under the ISA.”
Government to relook and shelve some projects
Source TheStar
KUALA LUMPUR: The Government will review and shelve some projects including those in the economic corridors in view of the global economic slowdown, said Datuk Seri Abdullah Ahmad Badawi.
The Prime Minister said the Government would decide which projects should go ahead and which could be put on hold.
“We have made the decision to review the projects once again. We need to postpone some projects which have yet to start construction,” he said at Akademi Kenegaraan’s closing ceremony for the Spirit of Merdeka 2008.
Abdullah said the action was appropriate because these were big projects and involved huge sums of money.
“The review involves all projects including those in the economic corridors. We will implement those we can afford and hold back those which can be postponed,” he said.
He said, however, the country was still drawing in foreign investments, adding that Malaysia’s approach was “targeted investment” from areas with excess funds.
“We have provided good investment opportunities for this country,” he said.
To a question on Malaysia not being able to achieve the same GDP as the previous year due to the global economic slowdown, Abdullah said Malaysia’s economy was resilient and the ringgit stable and it had strong foreign reserves.
He said Malaysia could maintain its exports at a high level and it was enjoying a favourable trade balance and even though the political scenario in the country was active, the nation remained peaceful.
Abdullah said Malaysia has already determined its approach in the present challenging economic times and had strategies to minimise the impact.
“We used to be dependent on the American market but we have now diversified and found markets for our goods in others places like the Asean countries, China and countries other than the United States,” he said.
He also pointed out that Malaysia had a high level of savings and this could help the situation.
“Malaysians can invest inside the country and domestic consumption can drive the economy,” he said, adding that the country’s fundamentals remained strong.
On another matter involving the purported controversial helicopter purchase, Abdullah said he had not received the details of the Eurocopter deal.
“I am calling the Mindef (Defence Ministry) secretary-general about this. I don’t want to cause any confusion,” said Abdullah, who is also Defence Minister.
Earlier this month, Mentari Services Sdn Bhd chairman Capt (Rtd) Zahar Hashim alleged that the tender made during Datuk Seri Najib Tun Razak’s tenure as Defence Minister to replace the aging Nuri helicopters had been too costly.
Capt Zahar claimed the Government could have saved almost RM1.5bil if it had bought the Kazan-M172 helicopters from Kelowna Flightcraft Ltd, the firm he represents, instead of buying Cougar EC-725s from the German-French firm, Eurocopter.
He said the Kazan-M172 met all the specifications required by the armed forces and cost RM898mil while the Cougar units cost the Government RM2.317bil.
KUALA LUMPUR: The Government will review and shelve some projects including those in the economic corridors in view of the global economic slowdown, said Datuk Seri Abdullah Ahmad Badawi.
The Prime Minister said the Government would decide which projects should go ahead and which could be put on hold.
“We have made the decision to review the projects once again. We need to postpone some projects which have yet to start construction,” he said at Akademi Kenegaraan’s closing ceremony for the Spirit of Merdeka 2008.
Abdullah said the action was appropriate because these were big projects and involved huge sums of money.
“The review involves all projects including those in the economic corridors. We will implement those we can afford and hold back those which can be postponed,” he said.
He said, however, the country was still drawing in foreign investments, adding that Malaysia’s approach was “targeted investment” from areas with excess funds.
“We have provided good investment opportunities for this country,” he said.
To a question on Malaysia not being able to achieve the same GDP as the previous year due to the global economic slowdown, Abdullah said Malaysia’s economy was resilient and the ringgit stable and it had strong foreign reserves.
He said Malaysia could maintain its exports at a high level and it was enjoying a favourable trade balance and even though the political scenario in the country was active, the nation remained peaceful.
Abdullah said Malaysia has already determined its approach in the present challenging economic times and had strategies to minimise the impact.
“We used to be dependent on the American market but we have now diversified and found markets for our goods in others places like the Asean countries, China and countries other than the United States,” he said.
He also pointed out that Malaysia had a high level of savings and this could help the situation.
“Malaysians can invest inside the country and domestic consumption can drive the economy,” he said, adding that the country’s fundamentals remained strong.
On another matter involving the purported controversial helicopter purchase, Abdullah said he had not received the details of the Eurocopter deal.
“I am calling the Mindef (Defence Ministry) secretary-general about this. I don’t want to cause any confusion,” said Abdullah, who is also Defence Minister.
Earlier this month, Mentari Services Sdn Bhd chairman Capt (Rtd) Zahar Hashim alleged that the tender made during Datuk Seri Najib Tun Razak’s tenure as Defence Minister to replace the aging Nuri helicopters had been too costly.
Capt Zahar claimed the Government could have saved almost RM1.5bil if it had bought the Kazan-M172 helicopters from Kelowna Flightcraft Ltd, the firm he represents, instead of buying Cougar EC-725s from the German-French firm, Eurocopter.
He said the Kazan-M172 met all the specifications required by the armed forces and cost RM898mil while the Cougar units cost the Government RM2.317bil.
Bernanke says U.S. economy faces big threat
Source Reuters
NEW YORK (Reuters) - Federal Reserve Chairman Ben Bernanke said on Wednesday that turmoil in credit markets poses a "significant threat" to the U.S. economy, suggesting more interest-rate cuts could be coming to help stave off a deep downturn.
Bernanke said it will take some time to restore normal credit flows and pledged the U.S. central bank would continue to act aggressively to fight the crisis. Importantly, he said inflation risks were ebbing, which suggests Fed officials see latitude to lower borrowing costs further.
"By restricting flows of credit to households, businesses, and state and local governments, the turmoil in financial markets and the funding pressures on financial firms pose a significant threat to economic growth," Bernanke told the Economic Club of New York.
"We will continue to use all the tools at our disposal to improve market functioning and liquidity," he said, adding that policy-makers' aggressive and quick response crucially distinguished this episode from the crisis of the 1930s.
U.S. stocks, already down sharply on Wednesday on news of an unexpectedly big drop in September retail sales and weak factory data, sold off even more after the Fed chairman's dour assessment and finished the day with their largest percentage losses since the 1987 crash.
St. Louis Federal Reserve Bank President James Bullard said the sharp 1.2 percent drop in retail sales increased the risk of recession. "The third quarter, I think, will be flat to slightly negative," he told reporters in Little Rock, Arkansas. "That is going to push up the probability that it will later be named a recession.
RATE CUT SEEN
The data contributed to expectations that Fed officials will follow up an emergency interest rate cut made last week with another reduction at their next meeting on October 28-29.
Last week, in concert with central banks around the globe, the Fed cut benchmark rates by a half point to 1.5 percent. It said an intensification of the financial crisis had raised risks to growth, while curbing the risk of inflation.
In the latest bid to restore financial market stability, the U.S. government on Tuesday announced a dramatic plan to recapitalize banks, beginning with a $125 billion equity investment in nine major financial institutions.
But even with the government scrambling to restore credit, Bernanke cautioned it will take time for the economy to heal.
"Stabilization of the financial markets is a critical first step, but even if they stabilize as we hope they will, broader economic recovery will not happen right away," he said.
Analysts said Bernanke's words suggested the Fed chief saw the deteriorating outlook as calling for another rate cut.
"Bernanke's comments ... reinforce the sense that the Fed will lower interest rates when it meets again," said Tony Crescenzi, chief bond market strategist at Miller, Tabak & Co in New York.
FEW BRIGHT SPOTS
A Fed report prepared for the central bank's next meeting added to the gloomy news about the economy.
The Beige Book said economic activity had weakened across the country in recent weeks as businesses revisited capital investment plans, consumers curtailed spending and labor markets softened. The Fed described business contacts as "pessimistic."
In his speech, Bernanke said the housing sector remained the economy's weakest spot, but he also cited "marked slowdowns" in consumer spending, business investment and the labor market.
He added that credit markets would take time to unfreeze and said export sales, until recently a bright spot, were likely to slow as well.
While inflation had been high recently, Bernanke said expectations of future inflation had held steady or eased, import prices were moderating and commodity prices had fallen.
Those factors, along with the softness in the economy, "should lead to rates of inflation more consistent with price stability," he said. "I think the evidence is now in that the inflation problems are moderating and look to be returning to price stability at a reasonable pace."
Boston Fed President Eric Rosengren was more direct.
"One of the characteristics of a recession is in each of these recessions the inflation rate has come down quite dramatically," he told a real estate group in Boston.
"We're in a period when the economy is likely to grow quite slowly. The events of the last couple of weeks certainly aren't going to help.
NEW YORK (Reuters) - Federal Reserve Chairman Ben Bernanke said on Wednesday that turmoil in credit markets poses a "significant threat" to the U.S. economy, suggesting more interest-rate cuts could be coming to help stave off a deep downturn.
Bernanke said it will take some time to restore normal credit flows and pledged the U.S. central bank would continue to act aggressively to fight the crisis. Importantly, he said inflation risks were ebbing, which suggests Fed officials see latitude to lower borrowing costs further.
"By restricting flows of credit to households, businesses, and state and local governments, the turmoil in financial markets and the funding pressures on financial firms pose a significant threat to economic growth," Bernanke told the Economic Club of New York.
"We will continue to use all the tools at our disposal to improve market functioning and liquidity," he said, adding that policy-makers' aggressive and quick response crucially distinguished this episode from the crisis of the 1930s.
U.S. stocks, already down sharply on Wednesday on news of an unexpectedly big drop in September retail sales and weak factory data, sold off even more after the Fed chairman's dour assessment and finished the day with their largest percentage losses since the 1987 crash.
St. Louis Federal Reserve Bank President James Bullard said the sharp 1.2 percent drop in retail sales increased the risk of recession. "The third quarter, I think, will be flat to slightly negative," he told reporters in Little Rock, Arkansas. "That is going to push up the probability that it will later be named a recession.
RATE CUT SEEN
The data contributed to expectations that Fed officials will follow up an emergency interest rate cut made last week with another reduction at their next meeting on October 28-29.
Last week, in concert with central banks around the globe, the Fed cut benchmark rates by a half point to 1.5 percent. It said an intensification of the financial crisis had raised risks to growth, while curbing the risk of inflation.
In the latest bid to restore financial market stability, the U.S. government on Tuesday announced a dramatic plan to recapitalize banks, beginning with a $125 billion equity investment in nine major financial institutions.
But even with the government scrambling to restore credit, Bernanke cautioned it will take time for the economy to heal.
"Stabilization of the financial markets is a critical first step, but even if they stabilize as we hope they will, broader economic recovery will not happen right away," he said.
Analysts said Bernanke's words suggested the Fed chief saw the deteriorating outlook as calling for another rate cut.
"Bernanke's comments ... reinforce the sense that the Fed will lower interest rates when it meets again," said Tony Crescenzi, chief bond market strategist at Miller, Tabak & Co in New York.
FEW BRIGHT SPOTS
A Fed report prepared for the central bank's next meeting added to the gloomy news about the economy.
The Beige Book said economic activity had weakened across the country in recent weeks as businesses revisited capital investment plans, consumers curtailed spending and labor markets softened. The Fed described business contacts as "pessimistic."
In his speech, Bernanke said the housing sector remained the economy's weakest spot, but he also cited "marked slowdowns" in consumer spending, business investment and the labor market.
He added that credit markets would take time to unfreeze and said export sales, until recently a bright spot, were likely to slow as well.
While inflation had been high recently, Bernanke said expectations of future inflation had held steady or eased, import prices were moderating and commodity prices had fallen.
Those factors, along with the softness in the economy, "should lead to rates of inflation more consistent with price stability," he said. "I think the evidence is now in that the inflation problems are moderating and look to be returning to price stability at a reasonable pace."
Boston Fed President Eric Rosengren was more direct.
"One of the characteristics of a recession is in each of these recessions the inflation rate has come down quite dramatically," he told a real estate group in Boston.
"We're in a period when the economy is likely to grow quite slowly. The events of the last couple of weeks certainly aren't going to help.
Dow loses 733 after data feeds recession worry
Source Reuters
NEW YORK (Reuters) - Wall Street had its worst day since the 1987 stock market crash on Wednesday, as bleak economic data fed worries that all the efforts to unlock credit markets may not stave off a severe recession.
Federal Reserve Chairman Ben Bernanke added to those concerns when he said the economy faced a "significant threat" from paralyzed credit markets.
Dismal monthly U.S. retail sales set the tone for the session, dropping the most in more than three years, while a measure of New York state manufacturing hit its lowest level since the index started in 2001.
The Nasdaq has now wiped out all of its gains from Monday's 11 percent rally, while the benchmark S&P 500 is up only about 1 percent from Friday's close.
Wednesday's data intensified recession fears, as did the Federal Reserve's Beige Book report, which showed economic activity weakened across the United States in September as businesses revised capital investments and consumers curtailed spending.
Shares of companies considered economic bellwethers, such as industrial conglomerate Caterpillar Inc, fell sharply. Caterpillar's shares slid over 11 percent.
Fears of recession knocked commodities lower, with Exxon Mobil tumbling 14 percent as the price of oil fell.
"Retail sales spooked investors this morning and has increased the near-term risk of a broad-based recession," said Tom Sowanick, chief investment officer at Clearbrook Financial LLC in Princeton, New Jersey.
The Dow and the benchmark S&P 500 suffered their worst one-day percentage drops since 1987.
The Dow Jones industrial average slid 733.08 points, or 7.87 percent, to 8,577.91, while the Standard & Poor's 500 Index tumbled 90.17 points, or 9.03 percent, to 907.84.
The Nasdaq Composite Index sank 150.68 points, or 8.47 percent, to 1,628.33.
The broad Dow Jones Wilshire 5000 closed down 905 points, or 8.99 percent, at 9,160.43, representing a paper loss for the day of approximately $1.1 trillion.
LATE SLIDE FOR eBAY
The negative news continued after the closing bell, with online auctioneer eBay Inc warning that its full-year revenues would fall below its previous forecast. Shares of eBay dropped about 4 percent after the closing bell.
During the regular session, shares of retailers skidded, with Wal-Mart falling 8.1 percent to $50.05 and Home Depot dropping 5.9 percent to $19.83. Analysts said the weak retail sales data underscored the severity of the squeeze on consumers faced with sliding home values, a tumbling stock market and tight credit.
Caterpillar's shares fell 11.4 percent to $42.06.
In the energy sector, Exxon Mobil fell 14 percent to $62.35, while Chevron lost 12.5 percent to $59.98. U.S. crude futures slid to a new 13-month low below $75 a barrel as fears of demand falling in a recession and slumping equities further pressured the oil markets. U.S. crude for November delivery fell $4.09 to settle at $74.54 a barrel.
Other commodity-related companies were also slammed as materials tumbled. Miner Freeport McMoran slid 19 percent to $33.17.
FOR BANKS, NO QUICK FIX
Financial shares fell after Meredith Whitney, an influential bank analyst at Oppenheimer & Co, said government's plan to stabilize key U.S. banks by injecting $250 billion is not a "panacea solution." The S&P's financial sub-index dropped 9.1 percent.
Shares of State Street Corp, one of the world's biggest institutional asset managers, plummeted 17.4 percent to $46.83. The company reported rising unrealized losses in its commercial paper program and investment portfolio, sparking concerns among investors.
Strong results from Coca-Cola, the world's largest soft-drink maker, helped it buck the trend after it posted quarterly profit that beat Wall Street's expectations. Coke's stock shot up 1.1 percent to $44.21 -- the only one of the 30 Dow industrials that finished higher.
Trading was low on the New York Stock Exchange, with about 1.68 billion shares changing hands, below last year's estimated daily average of roughly 1.9 billion, while on Nasdaq, about 2.54 billion shares traded, above last year's daily average of 2.17 billion.
Declining stocks outnumbered advancing ones by 9 to 1 on the NYSE and by 8 to 1 on the Nasdaq.
NEW YORK (Reuters) - Wall Street had its worst day since the 1987 stock market crash on Wednesday, as bleak economic data fed worries that all the efforts to unlock credit markets may not stave off a severe recession.
Federal Reserve Chairman Ben Bernanke added to those concerns when he said the economy faced a "significant threat" from paralyzed credit markets.
Dismal monthly U.S. retail sales set the tone for the session, dropping the most in more than three years, while a measure of New York state manufacturing hit its lowest level since the index started in 2001.
The Nasdaq has now wiped out all of its gains from Monday's 11 percent rally, while the benchmark S&P 500 is up only about 1 percent from Friday's close.
Wednesday's data intensified recession fears, as did the Federal Reserve's Beige Book report, which showed economic activity weakened across the United States in September as businesses revised capital investments and consumers curtailed spending.
Shares of companies considered economic bellwethers, such as industrial conglomerate Caterpillar Inc, fell sharply. Caterpillar's shares slid over 11 percent.
Fears of recession knocked commodities lower, with Exxon Mobil tumbling 14 percent as the price of oil fell.
"Retail sales spooked investors this morning and has increased the near-term risk of a broad-based recession," said Tom Sowanick, chief investment officer at Clearbrook Financial LLC in Princeton, New Jersey.
The Dow and the benchmark S&P 500 suffered their worst one-day percentage drops since 1987.
The Dow Jones industrial average slid 733.08 points, or 7.87 percent, to 8,577.91, while the Standard & Poor's 500 Index tumbled 90.17 points, or 9.03 percent, to 907.84.
The Nasdaq Composite Index sank 150.68 points, or 8.47 percent, to 1,628.33.
The broad Dow Jones Wilshire 5000 closed down 905 points, or 8.99 percent, at 9,160.43, representing a paper loss for the day of approximately $1.1 trillion.
LATE SLIDE FOR eBAY
The negative news continued after the closing bell, with online auctioneer eBay Inc warning that its full-year revenues would fall below its previous forecast. Shares of eBay dropped about 4 percent after the closing bell.
During the regular session, shares of retailers skidded, with Wal-Mart falling 8.1 percent to $50.05 and Home Depot dropping 5.9 percent to $19.83. Analysts said the weak retail sales data underscored the severity of the squeeze on consumers faced with sliding home values, a tumbling stock market and tight credit.
Caterpillar's shares fell 11.4 percent to $42.06.
In the energy sector, Exxon Mobil fell 14 percent to $62.35, while Chevron lost 12.5 percent to $59.98. U.S. crude futures slid to a new 13-month low below $75 a barrel as fears of demand falling in a recession and slumping equities further pressured the oil markets. U.S. crude for November delivery fell $4.09 to settle at $74.54 a barrel.
Other commodity-related companies were also slammed as materials tumbled. Miner Freeport McMoran slid 19 percent to $33.17.
FOR BANKS, NO QUICK FIX
Financial shares fell after Meredith Whitney, an influential bank analyst at Oppenheimer & Co, said government's plan to stabilize key U.S. banks by injecting $250 billion is not a "panacea solution." The S&P's financial sub-index dropped 9.1 percent.
Shares of State Street Corp, one of the world's biggest institutional asset managers, plummeted 17.4 percent to $46.83. The company reported rising unrealized losses in its commercial paper program and investment portfolio, sparking concerns among investors.
Strong results from Coca-Cola, the world's largest soft-drink maker, helped it buck the trend after it posted quarterly profit that beat Wall Street's expectations. Coke's stock shot up 1.1 percent to $44.21 -- the only one of the 30 Dow industrials that finished higher.
Trading was low on the New York Stock Exchange, with about 1.68 billion shares changing hands, below last year's estimated daily average of roughly 1.9 billion, while on Nasdaq, about 2.54 billion shares traded, above last year's daily average of 2.17 billion.
Declining stocks outnumbered advancing ones by 9 to 1 on the NYSE and by 8 to 1 on the Nasdaq.
Fasten your seatbelts
Source TheAge
Over time, the volatility of the stock market exceeds the capacity of traders to absorb losses. In other words, very few people actually make money trading the stock market through entire cycles.
In the wake of the biggest one-day rout since the 1987 crash, this reality will brutalise any punter intrepid or foolish enough to have waded back in for a spot of bargain hunting during the few days.
Over the long-term, shares perform better than the other asset classes, bonds and property, but short and medium-term trading is a big boys' game. And so it is that the bear market now appears to be entering its "capitulation" phase where people simply chuck their hands in the air and walk away. Institutional volumes drop away too.
To those who have lambasted this reporter for being excessively bearish this year - and apparently talking the market down (which entirely exaggerates our significance in the universe) - it may be useful to know that we cut our teeth in this journalism caper in the bear market of 1990. It was not until every last punter was a bear and believed the market would not recover for years ... that it finally did.
This left a stark impression of the herd mentality, and of the notion of capitulation. In the aftermath of an abortive expansion into the US market Westpac had been decimated by the deepest losses in Australian corporate history, the stock was on its knees in the $2 range amid speculation the bank would go under, market sentiment was unbearably morose, and somebody began building a stake in Westpac.
The mystery buyer was finally outed as Kerry Packer. He picked up a 10% holding and launched a tilt for a couple of seats on the board with henchman Al Dunlap. They failed. Packer sold out way too early - but still made $100 million.
It should be kept in mind that the share market began recovering when Australia fell into the recession of the early 1990s. Since that time the market has been broadly in upswing. The dotcom bubble was just that, a bubble, and the subsequent bull-market by far the biggest in history.
This time around, sadly, the level of consumer debt is far greater.
Meanwhile, the bad news came thumping in last night on both sides of the pond. We won't reiterate here. Fed chairman Ben Bernanke was sufficiently concerned that he foreshadowed the need for greater market supervision by government in managing asset price bubbles.
Bernanke is a champion at shutting the gate after the horse has bolted, though a good deal of the blame for this mess can be directed at the abject failure of his predecessor Alan Greenspan to supervise interest rates for the long-term.
And in a prelude to further state intervention Bernanke noted that the US faced a "very serious too-big-to-fail problem". "There are too many firms that are in some sense systemically critical".
The big fear is bonds. Will the US bond market crack? Throughout this crisis there has been a pattern. When the Dow has been strong, bonds have weakened. When the Dow has been weak, bonds prices have ticked up in the "flight to quality".
The US bond market is the biggest market in the world and the 30-year treasury bond has hovered near its all-time highs - or all time low yields, as bond yields are inverse to price.
Bonds have been in a bull-market since the early 1980s when the yield peaked at 15%.
If the US bond is destined for the mother of all sell-offs - to use a tired old term - the world is in for the mother of all "dislocations" - to use a euphemism.
In the last seven trading days the 30-year bond has been sold down from 122.50 to 114.50, off a low of 113.80.
The Fed can control short-term rates but the fate of the big bond may be out of its hands, especially since China owns more than $1 trillion of them and the Arabs probably more.
If the rate spikes up so do the costs of long-term borrowing for the US Government. This, at a time when the deficit is spiralling towards $US1 trillion this year (some commentators are tipping $US2 trillion) and government debt - and this is before the ocean of household debt - is 70% of GDP and rising.
As GDP is contracting and fiscal policy expanding, the outlook is not pretty. Who will buy the bonds? The oil producers will. China and the rest of the world may not. The US Government will pull out all stops to protect the primacy of its bellwether asset, the long bond, and defend its dollar at all costs.
Over time, the volatility of the stock market exceeds the capacity of traders to absorb losses. In other words, very few people actually make money trading the stock market through entire cycles.
In the wake of the biggest one-day rout since the 1987 crash, this reality will brutalise any punter intrepid or foolish enough to have waded back in for a spot of bargain hunting during the few days.
Over the long-term, shares perform better than the other asset classes, bonds and property, but short and medium-term trading is a big boys' game. And so it is that the bear market now appears to be entering its "capitulation" phase where people simply chuck their hands in the air and walk away. Institutional volumes drop away too.
To those who have lambasted this reporter for being excessively bearish this year - and apparently talking the market down (which entirely exaggerates our significance in the universe) - it may be useful to know that we cut our teeth in this journalism caper in the bear market of 1990. It was not until every last punter was a bear and believed the market would not recover for years ... that it finally did.
This left a stark impression of the herd mentality, and of the notion of capitulation. In the aftermath of an abortive expansion into the US market Westpac had been decimated by the deepest losses in Australian corporate history, the stock was on its knees in the $2 range amid speculation the bank would go under, market sentiment was unbearably morose, and somebody began building a stake in Westpac.
The mystery buyer was finally outed as Kerry Packer. He picked up a 10% holding and launched a tilt for a couple of seats on the board with henchman Al Dunlap. They failed. Packer sold out way too early - but still made $100 million.
It should be kept in mind that the share market began recovering when Australia fell into the recession of the early 1990s. Since that time the market has been broadly in upswing. The dotcom bubble was just that, a bubble, and the subsequent bull-market by far the biggest in history.
This time around, sadly, the level of consumer debt is far greater.
Meanwhile, the bad news came thumping in last night on both sides of the pond. We won't reiterate here. Fed chairman Ben Bernanke was sufficiently concerned that he foreshadowed the need for greater market supervision by government in managing asset price bubbles.
Bernanke is a champion at shutting the gate after the horse has bolted, though a good deal of the blame for this mess can be directed at the abject failure of his predecessor Alan Greenspan to supervise interest rates for the long-term.
And in a prelude to further state intervention Bernanke noted that the US faced a "very serious too-big-to-fail problem". "There are too many firms that are in some sense systemically critical".
The big fear is bonds. Will the US bond market crack? Throughout this crisis there has been a pattern. When the Dow has been strong, bonds have weakened. When the Dow has been weak, bonds prices have ticked up in the "flight to quality".
The US bond market is the biggest market in the world and the 30-year treasury bond has hovered near its all-time highs - or all time low yields, as bond yields are inverse to price.
Bonds have been in a bull-market since the early 1980s when the yield peaked at 15%.
If the US bond is destined for the mother of all sell-offs - to use a tired old term - the world is in for the mother of all "dislocations" - to use a euphemism.
In the last seven trading days the 30-year bond has been sold down from 122.50 to 114.50, off a low of 113.80.
The Fed can control short-term rates but the fate of the big bond may be out of its hands, especially since China owns more than $1 trillion of them and the Arabs probably more.
If the rate spikes up so do the costs of long-term borrowing for the US Government. This, at a time when the deficit is spiralling towards $US1 trillion this year (some commentators are tipping $US2 trillion) and government debt - and this is before the ocean of household debt - is 70% of GDP and rising.
As GDP is contracting and fiscal policy expanding, the outlook is not pretty. Who will buy the bonds? The oil producers will. China and the rest of the world may not. The US Government will pull out all stops to protect the primacy of its bellwether asset, the long bond, and defend its dollar at all costs.
PAS leaders condemn Cheras Umno’s decision to create fund against libel suit
Source TheStar
KOTA BARU: Three senior PAS leaders have condemned the Cheras Umno division for setting up a fund to help the Utusan Malaysia newspaper defend itself against multi-million libel suits, saying their intention had racial undertones.
PAS vice-president Datuk Husam Musa said it was unbecoming for politicians to be defending newspapers that by virtue of ethics, was an independent organisation, a watchdog acting on behalf of society.
He wondered why Cheras Umno was going after Seputeh MP Teresa Kok who was at the centre of allegations that she petitioned a mosque in Puchong to reduce the volume for azan (a call for prayers) as everyone named in the allegations, from Kok to the mosque committee, had denied this.
Yet Cheras Umno was pushing the issue without realising the sensitivities of race and religion, said Husam.
“This is unhealthy for a country with a strong multi-ethnic and multi-religious composition, it can lead to unsavoury tensions,” he said.
Husam was speaking at the Kota Baru PAS “Hari Raya Aidil Fitri” gathering at the state Chinese Chamber of Commerce where the guest of honour was Penang Chief Minister Lim Guan Eng.
Kota Baru MP Datuk Wan Abdul Rahim Wan Abdullah who hosted the event said most inhabitants in the country particularly the Malays were descendents of migrants either from parts of the Malay archipelago or from the Yunan province in China with some later coming from India.
PAS spiritual adviser Datuk Nik Abdul Aziz Nik Mat urged Umno to come out with a fund to salvage Malays from following the secularism form of Islam that they imposed after learning from the British.
He said it was dangerous to use racism in an age where people are fighting for justice and equality around the world.
Lim who launched his book here about experiences of prison life to the early formative days of a DAP-dominated Penang Government, urged MCA and Gerakan to leave the Umno-dominated Barisan Nasional.
KOTA BARU: Three senior PAS leaders have condemned the Cheras Umno division for setting up a fund to help the Utusan Malaysia newspaper defend itself against multi-million libel suits, saying their intention had racial undertones.
PAS vice-president Datuk Husam Musa said it was unbecoming for politicians to be defending newspapers that by virtue of ethics, was an independent organisation, a watchdog acting on behalf of society.
He wondered why Cheras Umno was going after Seputeh MP Teresa Kok who was at the centre of allegations that she petitioned a mosque in Puchong to reduce the volume for azan (a call for prayers) as everyone named in the allegations, from Kok to the mosque committee, had denied this.
Yet Cheras Umno was pushing the issue without realising the sensitivities of race and religion, said Husam.
“This is unhealthy for a country with a strong multi-ethnic and multi-religious composition, it can lead to unsavoury tensions,” he said.
Husam was speaking at the Kota Baru PAS “Hari Raya Aidil Fitri” gathering at the state Chinese Chamber of Commerce where the guest of honour was Penang Chief Minister Lim Guan Eng.
Kota Baru MP Datuk Wan Abdul Rahim Wan Abdullah who hosted the event said most inhabitants in the country particularly the Malays were descendents of migrants either from parts of the Malay archipelago or from the Yunan province in China with some later coming from India.
PAS spiritual adviser Datuk Nik Abdul Aziz Nik Mat urged Umno to come out with a fund to salvage Malays from following the secularism form of Islam that they imposed after learning from the British.
He said it was dangerous to use racism in an age where people are fighting for justice and equality around the world.
Lim who launched his book here about experiences of prison life to the early formative days of a DAP-dominated Penang Government, urged MCA and Gerakan to leave the Umno-dominated Barisan Nasional.
Cops probe commotion at PM’s Raya open house
Source TheStar
PETALING JAYA: Police have recorded statements from three Hindraf organisers regarding a commotion at the Prime Minister and Cabinet members’ Hari Raya open house at the Putra World Trade Centre recently.
The three are S. Jayathas, 41, K. Shanti, in her 30s, and K. Selvam, 43. They were accompanied by their lawyers Latheefa Koya and N. Surendran.
Shanti is the wife of Hindraf chairman P. Waythamoorthy who is in self-exile in London.
The three arrived at the Dang Wangi district police headquarters at 3pm yesterday where they gave their statements for an hour.
Surendran said the three were asked about 28 questions under Section 27 of the Police Act and Section 447 of the Penal Code.
“However, we chose to remain silent for each of the questions because we felt that the questions had nothing to do with the case we were being investigated under,” said Jayathas.
Surendran said the questioning was a form of intimidation and harassment against his clients who had gathered peacefully at the Prime Minister’s Hari Raya open house.
“It is absurd because for the first time in Malaysia someone is called in for questioning for attending a Hari Raya open house. We believe this is politically motivated and a clear case of police abuse of power,” he said.
He added that police did not mention whether there was a need for the three to present themselves again at the police headquarters for further questioning.
Kuala Lumpur deputy police chief Senior Asst Comm (I) Datuk Abdul Samah Mat confirmed that police were investigating the case.
A group of 160 Hindraf and “Free Raja Petra Kamarudin” supporters were said to have allegedly caused a commotion at the Prime Minister’s open house before presenting him with a teddy bear and a Raya greeting card containing signatures requesting the release of detained Hindraf leaders.
PETALING JAYA: Police have recorded statements from three Hindraf organisers regarding a commotion at the Prime Minister and Cabinet members’ Hari Raya open house at the Putra World Trade Centre recently.
The three are S. Jayathas, 41, K. Shanti, in her 30s, and K. Selvam, 43. They were accompanied by their lawyers Latheefa Koya and N. Surendran.
Shanti is the wife of Hindraf chairman P. Waythamoorthy who is in self-exile in London.
The three arrived at the Dang Wangi district police headquarters at 3pm yesterday where they gave their statements for an hour.
Surendran said the three were asked about 28 questions under Section 27 of the Police Act and Section 447 of the Penal Code.
“However, we chose to remain silent for each of the questions because we felt that the questions had nothing to do with the case we were being investigated under,” said Jayathas.
Surendran said the questioning was a form of intimidation and harassment against his clients who had gathered peacefully at the Prime Minister’s Hari Raya open house.
“It is absurd because for the first time in Malaysia someone is called in for questioning for attending a Hari Raya open house. We believe this is politically motivated and a clear case of police abuse of power,” he said.
He added that police did not mention whether there was a need for the three to present themselves again at the police headquarters for further questioning.
Kuala Lumpur deputy police chief Senior Asst Comm (I) Datuk Abdul Samah Mat confirmed that police were investigating the case.
A group of 160 Hindraf and “Free Raja Petra Kamarudin” supporters were said to have allegedly caused a commotion at the Prime Minister’s open house before presenting him with a teddy bear and a Raya greeting card containing signatures requesting the release of detained Hindraf leaders.
Should Malaysia guarantee bank deposits?
Source TheStar
AS governments around the world are rushing to guarantee deposits with their financial institutions in the wake of a spreading financial crisis, the question is if Malaysia should follow suit — and when.
If Malaysia decides to do so, it won’t be the first time. During the Asian financial crisis of 1997/98, there was a significant shift of money from local to foreign banks, which were perceived to be safer than the local banks.
To stop the situation from worsening and to ensure that local banks had sufficient deposits to provide enough liquidity for their banking activities, the Government gave an assurance that deposits with local banks were safe. Savers were assuaged and the shift dwindled.
Now we are in an ironically happy situation — relatively speaking that is — where many people perceive local banks, because of their lack of exposure to the US subprime mortgage crisis, to be stronger than some of the foreign ones.
It may be just too early for the Government to think of giving another such assurance to depositors right now since the banks here are little exposed to the credit and lending crisis overseas and their critical ratios all still look good.
But there is no harm in giving some deep thought to the issue, especially since it is central to the health of a financial system. If depositors lose confidence in the financial institutions and withdraw their money, liquidity will simply dry up and lead to a total collapse of the system.
Right now, there is a deposit insurance scheme in operation. This is sponsored and supported by the Government under Perbadanan Insurans Deposit Malaysia or PDIM, the deposits insurance body. Under the scheme, each account holder per bank is insured up to RM60,000 in the event of bank failure. This covers the over 90% of depositors who have RM60,000 or less in deposits per bank.
But the amount of deposits covered is a whole lot less than that because the large depositors in the system are government bodies, corporations, partnerships and businesses, each of whose accounts can run into the millions.
Many of them will maintain just a couple of accounts and it would be too much trouble and too little benefit to spread it over 36 banks and gain an insurance coverage of just RM2.16mil (36 times 60,000) under the current deposit insurance scheme.
Under the PDIM scheme, RM191.5bil of deposits were insured as at Dec 31, 2007. But the total deposits as at the same date with commercial banks in Malaysia amounted to RM821bil. That means less than a quarter of total deposits are insured.
While the scheme is good for ensuring that the bulk of depositors is protected in the event of bank failure, it does not insure the bulk of deposits in the system. Thus, the deposit insurance scheme that Malaysia has is one that protects small savers but is of little help when it comes to problems that can affect the entire financial system — more than that is required to stop a systemic failure.
So far, contagion has not resulted in severe disease yet. The financial system is sound. But if the economy slips into recession, and output of goods and services contracts as worldwide demand falls, things can get sour here. And if there is a severe fall in property prices, it will worsen things.
And then there are peculiar problems in guaranteeing bank deposits — there could be a surfeit of deposits from overseas coming in here to take advantage of a government guarantee.
Conversely, if neighbouring Singapore decides to guarantee deposits, there could be an outflow of funds from here to there if we do not follow suit.
Yes, it may still be a bit premature to talk about guaranteeing all deposits in the banking system. But it is clear we must continue to watch the situation very closely and, if it is time to give that assurance, we simply must.
AS governments around the world are rushing to guarantee deposits with their financial institutions in the wake of a spreading financial crisis, the question is if Malaysia should follow suit — and when.
If Malaysia decides to do so, it won’t be the first time. During the Asian financial crisis of 1997/98, there was a significant shift of money from local to foreign banks, which were perceived to be safer than the local banks.
To stop the situation from worsening and to ensure that local banks had sufficient deposits to provide enough liquidity for their banking activities, the Government gave an assurance that deposits with local banks were safe. Savers were assuaged and the shift dwindled.
Now we are in an ironically happy situation — relatively speaking that is — where many people perceive local banks, because of their lack of exposure to the US subprime mortgage crisis, to be stronger than some of the foreign ones.
It may be just too early for the Government to think of giving another such assurance to depositors right now since the banks here are little exposed to the credit and lending crisis overseas and their critical ratios all still look good.
But there is no harm in giving some deep thought to the issue, especially since it is central to the health of a financial system. If depositors lose confidence in the financial institutions and withdraw their money, liquidity will simply dry up and lead to a total collapse of the system.
Right now, there is a deposit insurance scheme in operation. This is sponsored and supported by the Government under Perbadanan Insurans Deposit Malaysia or PDIM, the deposits insurance body. Under the scheme, each account holder per bank is insured up to RM60,000 in the event of bank failure. This covers the over 90% of depositors who have RM60,000 or less in deposits per bank.
But the amount of deposits covered is a whole lot less than that because the large depositors in the system are government bodies, corporations, partnerships and businesses, each of whose accounts can run into the millions.
Many of them will maintain just a couple of accounts and it would be too much trouble and too little benefit to spread it over 36 banks and gain an insurance coverage of just RM2.16mil (36 times 60,000) under the current deposit insurance scheme.
Under the PDIM scheme, RM191.5bil of deposits were insured as at Dec 31, 2007. But the total deposits as at the same date with commercial banks in Malaysia amounted to RM821bil. That means less than a quarter of total deposits are insured.
While the scheme is good for ensuring that the bulk of depositors is protected in the event of bank failure, it does not insure the bulk of deposits in the system. Thus, the deposit insurance scheme that Malaysia has is one that protects small savers but is of little help when it comes to problems that can affect the entire financial system — more than that is required to stop a systemic failure.
So far, contagion has not resulted in severe disease yet. The financial system is sound. But if the economy slips into recession, and output of goods and services contracts as worldwide demand falls, things can get sour here. And if there is a severe fall in property prices, it will worsen things.
And then there are peculiar problems in guaranteeing bank deposits — there could be a surfeit of deposits from overseas coming in here to take advantage of a government guarantee.
Conversely, if neighbouring Singapore decides to guarantee deposits, there could be an outflow of funds from here to there if we do not follow suit.
Yes, it may still be a bit premature to talk about guaranteeing all deposits in the banking system. But it is clear we must continue to watch the situation very closely and, if it is time to give that assurance, we simply must.
PAS persoal perkembangan projek Koridor Pantai Timur
Source Harakah
KUALA LUMPUR, 14 Okt (Hrkh) - Dato' Kamaruddin Jaafar (PAS-Tumpat) melahirkan kebimbangan kerana setelah dua tahun Koridor Pantai Timur (Ecer) dilancarkan, sehingga kini peruntukan RM30 juta yang diumumkan hanya untuk kajian semata-mata.
Jelas Kamaruddin, perkara ini amat mengecewakan terutama bagi rakyat di negeri Kelantan, Terengganu dan Pahang.
"Projek Jambatan Sultan Yahya ke II yang lebih 13 bulan dilancarkan dan untuk pelaksanaan projek selama 30 bulan, tidak sampai 10 peratus dilaksanakan. Perkara ini menunjukkan kegagalan yang jelas di pihak kerajaan," katanya.
Beliau berkata demikian sewaktu mengemukakan soalan tambahan dalam sesi soal jawab di Dewan Rakyat hari ini.
Dalam pada itu Kamaruddin turut mengemukakan persoalan, apakah Petronas sebagai peneraju utama projek berkaitan tidak bercadang untuk mewujudkan 'supply base' di Bachok, Pasir Puteh atau Tumpat untuk menyelenggarakan pencarian, penggalian serta penemuan minyak dan gas yang banyak terdapat di persisir lautan Kelantan dan Terengganu.
Menjawab soalan tersebut, Menteri Di Jabatan Perdana Menteri, Senator Tan Sri Amirsham A.Aziz berkata Ecer masih baru dilancarkan dan baru dilaksanakan pertengahan tahun ini.
Jelasnya, kerajaan masih dalam peringkat perundingan bagi mendapatkan pelabur di peringkat sektor pembuatan termasuk industri berkaitan minyak.
Sementara itu, dalam isu yang sama, Dato' Abdul Ghafur Salleh (BN- Kalabakan) menyelar kerajaan kerana pelaksanaan koridor di Sabah yang dilancarkan dua tahun dahulu sampai sekarang tidak menampakkan sebarang hasil.
"Sudah dua tahun koridor di Sabah dilancarkan oleh Perdana Menteri tetapi sampai sekarang tidak nampak 'satu butir pasir' pun saya tidak nampak. Kenapa perkara ini dilalaikan. Mungkinkah kerana ini hanya 'manisan' kepada rakyat Sabah sewaktu pilihan raya sahaja?" katanya yang menarik perhatian ahli dewan yang lain.
Abdul Ghaffur juga mempersoalkan apakah janji peruntukan RM5 bilion yang diperuntukan untuk pelaksanaan koridor tersebut telah diberi, akan diberi, belum diberi atau tidak diberi.
Beliau juga melahirkan kekecewaan kerana berlaku ketidakadilan dalam pelaksanaan koridor di Semenanjun dan Sabah.
"Petronas merupakan peneraju utama koridor di Semenanjung. Bagaimanapun peneraju di Sabah adalah syarikat-syarikat kerajaan negeri yang tidak mempunyai wang.
"Rakyat Sabah tidak mahu 'manisan' semata-mata. Jika betul-betul ada peruntukan tersebut, boleh bagi kepada kami. Saya juga lihat dalam bajet tiada dinyatakan mengenai perkara ini. Kita minta penjelasan daripada Menteri di Jabatan Perdana Menteri megnenai perkara ini," katanya.
Bagaimanapun Amirsham yang bangkit menjawab soalan tersebut menyatakan soalan tersebut tidak mempunyai perkaitan dengan soalan asal yang dikemukakan.
Abdul Ghaffur yang tidak berpuas hati dengan jawapan yang diberikan Amirsham sekali lagi bangkit menyatakan adalah tidak adil bagi beliau kerana sebagai menteri, jawapan bagi perkara tersebut seharusnya dapat diberikan.
"Dato' Speaker, ini tidak adil. Seharusnya semua jawapan berkaitan dengan koridor ini sudah ada dalam kepala Menteri Jabatan Perdana Menteri. Kalau begini tidak layak duduk di Jabatan Perdana Menteri," katanya yang disahut suara-suara ahli dewan.
Timbalan Yang DiPertua, Dato' Ronald Kiandee menyatakan isu yang dinyatakan itu harus dibawa dalam perbahasan bajet.
KUALA LUMPUR, 14 Okt (Hrkh) - Dato' Kamaruddin Jaafar (PAS-Tumpat) melahirkan kebimbangan kerana setelah dua tahun Koridor Pantai Timur (Ecer) dilancarkan, sehingga kini peruntukan RM30 juta yang diumumkan hanya untuk kajian semata-mata.
Jelas Kamaruddin, perkara ini amat mengecewakan terutama bagi rakyat di negeri Kelantan, Terengganu dan Pahang.
"Projek Jambatan Sultan Yahya ke II yang lebih 13 bulan dilancarkan dan untuk pelaksanaan projek selama 30 bulan, tidak sampai 10 peratus dilaksanakan. Perkara ini menunjukkan kegagalan yang jelas di pihak kerajaan," katanya.
Beliau berkata demikian sewaktu mengemukakan soalan tambahan dalam sesi soal jawab di Dewan Rakyat hari ini.
Dalam pada itu Kamaruddin turut mengemukakan persoalan, apakah Petronas sebagai peneraju utama projek berkaitan tidak bercadang untuk mewujudkan 'supply base' di Bachok, Pasir Puteh atau Tumpat untuk menyelenggarakan pencarian, penggalian serta penemuan minyak dan gas yang banyak terdapat di persisir lautan Kelantan dan Terengganu.
Menjawab soalan tersebut, Menteri Di Jabatan Perdana Menteri, Senator Tan Sri Amirsham A.Aziz berkata Ecer masih baru dilancarkan dan baru dilaksanakan pertengahan tahun ini.
Jelasnya, kerajaan masih dalam peringkat perundingan bagi mendapatkan pelabur di peringkat sektor pembuatan termasuk industri berkaitan minyak.
Sementara itu, dalam isu yang sama, Dato' Abdul Ghafur Salleh (BN- Kalabakan) menyelar kerajaan kerana pelaksanaan koridor di Sabah yang dilancarkan dua tahun dahulu sampai sekarang tidak menampakkan sebarang hasil.
"Sudah dua tahun koridor di Sabah dilancarkan oleh Perdana Menteri tetapi sampai sekarang tidak nampak 'satu butir pasir' pun saya tidak nampak. Kenapa perkara ini dilalaikan. Mungkinkah kerana ini hanya 'manisan' kepada rakyat Sabah sewaktu pilihan raya sahaja?" katanya yang menarik perhatian ahli dewan yang lain.
Abdul Ghaffur juga mempersoalkan apakah janji peruntukan RM5 bilion yang diperuntukan untuk pelaksanaan koridor tersebut telah diberi, akan diberi, belum diberi atau tidak diberi.
Beliau juga melahirkan kekecewaan kerana berlaku ketidakadilan dalam pelaksanaan koridor di Semenanjun dan Sabah.
"Petronas merupakan peneraju utama koridor di Semenanjung. Bagaimanapun peneraju di Sabah adalah syarikat-syarikat kerajaan negeri yang tidak mempunyai wang.
"Rakyat Sabah tidak mahu 'manisan' semata-mata. Jika betul-betul ada peruntukan tersebut, boleh bagi kepada kami. Saya juga lihat dalam bajet tiada dinyatakan mengenai perkara ini. Kita minta penjelasan daripada Menteri di Jabatan Perdana Menteri megnenai perkara ini," katanya.
Bagaimanapun Amirsham yang bangkit menjawab soalan tersebut menyatakan soalan tersebut tidak mempunyai perkaitan dengan soalan asal yang dikemukakan.
Abdul Ghaffur yang tidak berpuas hati dengan jawapan yang diberikan Amirsham sekali lagi bangkit menyatakan adalah tidak adil bagi beliau kerana sebagai menteri, jawapan bagi perkara tersebut seharusnya dapat diberikan.
"Dato' Speaker, ini tidak adil. Seharusnya semua jawapan berkaitan dengan koridor ini sudah ada dalam kepala Menteri Jabatan Perdana Menteri. Kalau begini tidak layak duduk di Jabatan Perdana Menteri," katanya yang disahut suara-suara ahli dewan.
Timbalan Yang DiPertua, Dato' Ronald Kiandee menyatakan isu yang dinyatakan itu harus dibawa dalam perbahasan bajet.
MTUC bimbang ekonomi global jejas negara
Source Harakah
BUTTERWORTH, 14 Okt (Hrkh) - Kongres Kesatuan Sekerja Malaysia (MTUC) mempertikaikan kenyataan Kerajaan Malaysia yang masih menggangap ekonomi negara masih kukuh sedangkan semua tahu ekonomi global sedang mengalami kejatuhan.
Demikian kata Presiden MTUC, Syed Shahir Syed Mohd semasa sidang akhbar di Pejabat Kesatuan Pekerja-Pekerja Perusahaan Lektrik (E.I.W.U) Taman Inderawaseh, Perai pagi tadi.
Menurut beliau, bila ekonomi global jatuh pastinya Malaysia tidak terlepas daripada merasai bahang kegawatan dan kenyataan Perdana Menteri, Dato' Seri Abdullah Ahmad Badawi sendiri tidak releven.
"Kerajaan Malaysia sewajarnya bertindak segera mencari jalan bagaimana untuk menyelamatkan kegawatan yang semakin memuncak sekarang bukan mengeluarkan kenyataan yang tidak releven," ujarnya yang hadir bersama Pegerusi MTUC Pulau Pinang, Abdul Razak Abdul Hamid.
Di negara luar seperti Amerika Syarikat dan Britian, kerajaan negara itu terpaksa mengeluarkan peruntukan menyelamatkan institusi kewangan daripada bangkrap.
Sebagai sebuah negara kecil bagaimana Malaysia boleh bertahan walhal banyak eskpot negara ini bergantung pada dua negara besar itu, katanya.
MTUC katanya, begitu khuatir dalam masa terdekat banyak industri di negara ini akan ditutup sekali gus pembuangan pekerja berlaku tanpa membayar sebarang pampasan sepertimana yang berlaku pada kilang Nikko Electronic Berhad awal tahun ini.
Jesteru katanya, untuk menangani masalah tersebut, Kerajaan Malaysia harus mewujudkan tabungan untuk digunakan apabila syarikat tidak mampu membayar pampasan dan kerajaan juga disaran mengkaji semula polisi kewangan kerajaan sendiri supaya pekerja tidak terus ditindas.
BUTTERWORTH, 14 Okt (Hrkh) - Kongres Kesatuan Sekerja Malaysia (MTUC) mempertikaikan kenyataan Kerajaan Malaysia yang masih menggangap ekonomi negara masih kukuh sedangkan semua tahu ekonomi global sedang mengalami kejatuhan.
Demikian kata Presiden MTUC, Syed Shahir Syed Mohd semasa sidang akhbar di Pejabat Kesatuan Pekerja-Pekerja Perusahaan Lektrik (E.I.W.U) Taman Inderawaseh, Perai pagi tadi.
Menurut beliau, bila ekonomi global jatuh pastinya Malaysia tidak terlepas daripada merasai bahang kegawatan dan kenyataan Perdana Menteri, Dato' Seri Abdullah Ahmad Badawi sendiri tidak releven.
"Kerajaan Malaysia sewajarnya bertindak segera mencari jalan bagaimana untuk menyelamatkan kegawatan yang semakin memuncak sekarang bukan mengeluarkan kenyataan yang tidak releven," ujarnya yang hadir bersama Pegerusi MTUC Pulau Pinang, Abdul Razak Abdul Hamid.
Di negara luar seperti Amerika Syarikat dan Britian, kerajaan negara itu terpaksa mengeluarkan peruntukan menyelamatkan institusi kewangan daripada bangkrap.
Sebagai sebuah negara kecil bagaimana Malaysia boleh bertahan walhal banyak eskpot negara ini bergantung pada dua negara besar itu, katanya.
MTUC katanya, begitu khuatir dalam masa terdekat banyak industri di negara ini akan ditutup sekali gus pembuangan pekerja berlaku tanpa membayar sebarang pampasan sepertimana yang berlaku pada kilang Nikko Electronic Berhad awal tahun ini.
Jesteru katanya, untuk menangani masalah tersebut, Kerajaan Malaysia harus mewujudkan tabungan untuk digunakan apabila syarikat tidak mampu membayar pampasan dan kerajaan juga disaran mengkaji semula polisi kewangan kerajaan sendiri supaya pekerja tidak terus ditindas.
The Wrong Plan for Australia
Source Wall Street Journal
By STEPHEN KIRCHNER
Australian Prime Minister Kevin Rudd has just unveiled a fiscal stimulus plan worth 10.4 billion Australian dollars ($7.4 billion). At around 1% of GDP, it's bold. Will it work? Probably not as intended.
The plan consists of a set of handouts for politically appealing groups, such as old-age pensioners and families with children. There's also a big boost to infrastructure spending. It's a dramatic change for a government that as recently as May was hewing to the tightest fiscal policy since 1970-71, with a budget surplus of 2.1% of GDP. That budget was designed to put downward pressure on inflation. Taken together with the Reserve Bank of Australia's one-percentage-point easing at the beginning of the month, the new stimulus package points to a major reassessment of economic risks on the part of Australian policymakers. Growth has replaced inflation as the top concern.
Mr. Rudd's plan might look like a solution in search of a problem. Economic growth is set to slow, but Australia's real economy has yet to show significant stress from the global financial crisis. Financial institutions remain sound, and confidence has been boosted by the weekend's coordinated move by Australia and New Zealand to insure deposits. Monetary policy has already responded aggressively and a sharp fall in the Australian dollar exchange rate relative to the U.S. dollar is performing its traditional function of insulating Australia from external economic shocks.
There's certainly room for stimulus measures. But there are risks to stimulus, too. Timing fiscal stimulus measures so they take effect when they are most needed is difficult. Get the timing wrong and these measures could end-up being pro- rather than counter-cyclical.
A case in point is the government's proposal to accelerate its infrastructure spending agenda. Even with an accelerated timetable, work on these projects will not commence until well into 2009, with much of the spending not seen until even later, when Australia may already be through the feared economic downturn. Infrastructure spending decisions made in a crisis atmosphere might not be evaluated to the highest standards. Australia could be saddled with some wasteful rather than productivity-enhancing infrastructure projects.
Other aspects of Mr. Rudd's plan are at odds with what government should be doing in the current environment. The plan provides $1.5 billion in grants to first-time home buyers. It would double the grant amount to buyers of existing homes, while tripling the grant to buyers of newly built homes. The latter measure will be useful in addressing the chronic housing shortage that has driven housing affordability in Australia to record lows and seen rising rents makes a significant contribution to inflation.
The grant to buyers of existing homes, however, will serve only to bid up the prices of existing properties, the opposite of what is needed to improve housing affordability. This will benefit existing home owners rather than new home buyers, and has little value as a stimulus measure because it merely transfers wealth from buyers to current owners rather than encouraging new housing supply.
In other respects, the plan moves away from, not toward, broader structural reforms important to the long-term health of the economy. Consider the lump-sum payment to old-age and other pensioners, scheduled for December. Single pensioners will receive a one-time payment of A$1,400, while couples will receive A$2,100. The government calls this a "down payment on long-term pension reform," but it leaves the long-term future of pension reform an open issue. The focus for future reform needs to be on reducing dependence on the government pension. This means making the pension less rather than more attractive, so as to encourage people to save for their retirement.
Similarly, the government will make a one-off A$1,000 payment for each child in eligible families. While this may have some value as a short-term economic stimulus measure, it does not address some of the long-term issues clouding the family payments system, including the disincentives to labor-force participation.
The biggest problem with the stimulus plan, however, is something that's not in it -- tax relief. That too has been left to a future review by the Treasury Secretary, Ken Henry. There had been speculation the government might introduce a one-off tax rebate. Since the government says it is making "down payments" on future reform, a tax rebate would have provided a welcome signal of the government's commitment to this vital policy area. A tax rebate would diffuse more broadly than one-off welfare payments and reward labor-force participation rather than welfare dependence.
Short-term stimulus measures need not conflict with the imperatives of long-term structural reform. The government should have used the global financial crisis to gain increased traction for a long-term structural reform agenda that will provide lasting economic security, and not just a short-term boost to spending. The biggest flaw of Mr. Rudd's plan is all the opportunities it missed.
By STEPHEN KIRCHNER
Australian Prime Minister Kevin Rudd has just unveiled a fiscal stimulus plan worth 10.4 billion Australian dollars ($7.4 billion). At around 1% of GDP, it's bold. Will it work? Probably not as intended.
The plan consists of a set of handouts for politically appealing groups, such as old-age pensioners and families with children. There's also a big boost to infrastructure spending. It's a dramatic change for a government that as recently as May was hewing to the tightest fiscal policy since 1970-71, with a budget surplus of 2.1% of GDP. That budget was designed to put downward pressure on inflation. Taken together with the Reserve Bank of Australia's one-percentage-point easing at the beginning of the month, the new stimulus package points to a major reassessment of economic risks on the part of Australian policymakers. Growth has replaced inflation as the top concern.
Mr. Rudd's plan might look like a solution in search of a problem. Economic growth is set to slow, but Australia's real economy has yet to show significant stress from the global financial crisis. Financial institutions remain sound, and confidence has been boosted by the weekend's coordinated move by Australia and New Zealand to insure deposits. Monetary policy has already responded aggressively and a sharp fall in the Australian dollar exchange rate relative to the U.S. dollar is performing its traditional function of insulating Australia from external economic shocks.
There's certainly room for stimulus measures. But there are risks to stimulus, too. Timing fiscal stimulus measures so they take effect when they are most needed is difficult. Get the timing wrong and these measures could end-up being pro- rather than counter-cyclical.
A case in point is the government's proposal to accelerate its infrastructure spending agenda. Even with an accelerated timetable, work on these projects will not commence until well into 2009, with much of the spending not seen until even later, when Australia may already be through the feared economic downturn. Infrastructure spending decisions made in a crisis atmosphere might not be evaluated to the highest standards. Australia could be saddled with some wasteful rather than productivity-enhancing infrastructure projects.
Other aspects of Mr. Rudd's plan are at odds with what government should be doing in the current environment. The plan provides $1.5 billion in grants to first-time home buyers. It would double the grant amount to buyers of existing homes, while tripling the grant to buyers of newly built homes. The latter measure will be useful in addressing the chronic housing shortage that has driven housing affordability in Australia to record lows and seen rising rents makes a significant contribution to inflation.
The grant to buyers of existing homes, however, will serve only to bid up the prices of existing properties, the opposite of what is needed to improve housing affordability. This will benefit existing home owners rather than new home buyers, and has little value as a stimulus measure because it merely transfers wealth from buyers to current owners rather than encouraging new housing supply.
In other respects, the plan moves away from, not toward, broader structural reforms important to the long-term health of the economy. Consider the lump-sum payment to old-age and other pensioners, scheduled for December. Single pensioners will receive a one-time payment of A$1,400, while couples will receive A$2,100. The government calls this a "down payment on long-term pension reform," but it leaves the long-term future of pension reform an open issue. The focus for future reform needs to be on reducing dependence on the government pension. This means making the pension less rather than more attractive, so as to encourage people to save for their retirement.
Similarly, the government will make a one-off A$1,000 payment for each child in eligible families. While this may have some value as a short-term economic stimulus measure, it does not address some of the long-term issues clouding the family payments system, including the disincentives to labor-force participation.
The biggest problem with the stimulus plan, however, is something that's not in it -- tax relief. That too has been left to a future review by the Treasury Secretary, Ken Henry. There had been speculation the government might introduce a one-off tax rebate. Since the government says it is making "down payments" on future reform, a tax rebate would have provided a welcome signal of the government's commitment to this vital policy area. A tax rebate would diffuse more broadly than one-off welfare payments and reward labor-force participation rather than welfare dependence.
Short-term stimulus measures need not conflict with the imperatives of long-term structural reform. The government should have used the global financial crisis to gain increased traction for a long-term structural reform agenda that will provide lasting economic security, and not just a short-term boost to spending. The biggest flaw of Mr. Rudd's plan is all the opportunities it missed.
UAE pumps $19 bln more emergency funds into banks
Source Reuters
DUBAI (Reuters) - The United Arab Emirates more than doubled its emergency bank funding plan to 120 billion dirhams ($32.67 billion) on Tuesday as Gulf Arab states stepped up moves to combat the global financial crisis.
But the Gulf Arab state left bankers guessing about how it would employ the 70 billion dirhams ($19 billion) of new cash -- the biggest Gulf cash intervention to date -- after the UAE central bank opened a 50 billion dirham emergency lending facility last month.
The UAE prime minister ordered the transfer of funds to the finance ministry to pump into the banking sector to protect against global volatility, state news agency WAM said, without giving details of the mechanism.
The latest moves comes after an unprecedented week of emergency policy initiatives in the Gulf and around the world to revive a financial sector paralysed by fear and threatening to push the global economy into a deep recession.
The UAE government promised earlier this week to protect all national banks from credit risks, to provide sufficient liquidity for interbank lending and to guarantee bank deposits.
In a bid to bolster shares after weeks of declines, it also relaxed share buyback rules on the country's bourses.
Interbank lending rates in the UAE fell for the second day running on Tuesday after the extra funds were announced. Interbank rates in Saudi Arabia, which has also sought to reassure investors that there is sufficient liquidity in the system, edged up after falling on Monday.
"The series of measures the authorities have taken including pumping liquidity, facilitating company share buyback procedures, guaranteeing deposits...has the ability to reinforce confidence in the financial markets," Abdullah al-Turaifi, head of the Securities and Commodities Authority said.
MECHANISM UNCLEAR
Bankers said they expected the new government funds to be deposited with banks to alleviate the tensions that had pushed up interbank lending rates.
"It will probably be in the form of deposits. There are examples of this around the world," said the treasurer at a major UAE bank under the condition of anonymity.
"There is more tension in Dubai than in Abu Dhabi but everybody is affected," he said. "The good news is that they are providing financial assistance, it is earmarked and available for the sector."
The UAE central bank declined to comment and a spokesman for the finance ministry was not immediately available.
If the government places new funds as deposits with banks, it will ease funding tensions and help relax borrowing conditions that threaten to choke off a five-year economic boom in the Gulf Arab region, said a second UAE bank treasurer, who declined to be named.
But if the funds are merely meant to augment the existing 50-billion-dirham borrowing window, it is unlikely to have any impact, he said.
"If there is actual cash coming into the market, we'll see the interbank market settling down," he said.
"If it doesn't come in ... in that case, actual lending and borrowing in the interbank market will not improve."
The ruler of Dubai and UAE Prime Minister Sheikh Mohammed bin Rashid al-Maktoum ordered the central bank and the finance ministry to devise a system by which to pump the new liquidity into the financial sector, WAM said. It gave no more details.
DUBAI (Reuters) - The United Arab Emirates more than doubled its emergency bank funding plan to 120 billion dirhams ($32.67 billion) on Tuesday as Gulf Arab states stepped up moves to combat the global financial crisis.
But the Gulf Arab state left bankers guessing about how it would employ the 70 billion dirhams ($19 billion) of new cash -- the biggest Gulf cash intervention to date -- after the UAE central bank opened a 50 billion dirham emergency lending facility last month.
The UAE prime minister ordered the transfer of funds to the finance ministry to pump into the banking sector to protect against global volatility, state news agency WAM said, without giving details of the mechanism.
The latest moves comes after an unprecedented week of emergency policy initiatives in the Gulf and around the world to revive a financial sector paralysed by fear and threatening to push the global economy into a deep recession.
The UAE government promised earlier this week to protect all national banks from credit risks, to provide sufficient liquidity for interbank lending and to guarantee bank deposits.
In a bid to bolster shares after weeks of declines, it also relaxed share buyback rules on the country's bourses.
Interbank lending rates in the UAE fell for the second day running on Tuesday after the extra funds were announced. Interbank rates in Saudi Arabia, which has also sought to reassure investors that there is sufficient liquidity in the system, edged up after falling on Monday.
"The series of measures the authorities have taken including pumping liquidity, facilitating company share buyback procedures, guaranteeing deposits...has the ability to reinforce confidence in the financial markets," Abdullah al-Turaifi, head of the Securities and Commodities Authority said.
MECHANISM UNCLEAR
Bankers said they expected the new government funds to be deposited with banks to alleviate the tensions that had pushed up interbank lending rates.
"It will probably be in the form of deposits. There are examples of this around the world," said the treasurer at a major UAE bank under the condition of anonymity.
"There is more tension in Dubai than in Abu Dhabi but everybody is affected," he said. "The good news is that they are providing financial assistance, it is earmarked and available for the sector."
The UAE central bank declined to comment and a spokesman for the finance ministry was not immediately available.
If the government places new funds as deposits with banks, it will ease funding tensions and help relax borrowing conditions that threaten to choke off a five-year economic boom in the Gulf Arab region, said a second UAE bank treasurer, who declined to be named.
But if the funds are merely meant to augment the existing 50-billion-dirham borrowing window, it is unlikely to have any impact, he said.
"If there is actual cash coming into the market, we'll see the interbank market settling down," he said.
"If it doesn't come in ... in that case, actual lending and borrowing in the interbank market will not improve."
The ruler of Dubai and UAE Prime Minister Sheikh Mohammed bin Rashid al-Maktoum ordered the central bank and the finance ministry to devise a system by which to pump the new liquidity into the financial sector, WAM said. It gave no more details.
BNM: Malaysian financial system can weather global financial storm
Source TheStar
KUALA LUMPUR: The Malaysian financial system can weather the global financial turmoil and remains resilient, says Bank Negara.
The central bank said on Tuesday that it has a fully developed supervisory and surveillance system. It was also continuously monitors all financial institutions under its purview and will take appropriate action to safeguard the soundness of the financial system.
“The (central) Bank stands ready to provide liquidity, whenever necessary, to financial institutions under its purview. The Bank is also closely engaging with the other monetary authorities in the region to monitor and respond with co-ordinated measures in managing the current challenging environment,” it said.
Commenting on the resilience of the local financial institutions, it said this was due to several years of reforms, institutional development and capacity building, continuous efforts to enhance corporate governance and risk management standards and practices.
Bank Negara said the level of non-performing loans had also improved to 2.5%. It said the standardised approach of the Basel II capital adequacy framework was implemented effective January 2008.
“There is also ample liquidity in Malaysia’s financial system to facilitate the orderly functioning of economic and financing activities,” it said.
As at end-August 2008, net interbank placements with Bank Negara by the banking system totalled RM198.5bil.
“The banking and insurance industries are therefore operating with adequate capital and liquidity buffers that have been accumulated over several years.
Malaysia’s financial institutions also have negligible exposure to both sub-prime related securities and to the affected financial institutions of other countries, with more than 90% of total assets of the banks and insurance companies in ringgit denominated assets.
Bank Negara also said all foreign financial institutions in Malaysia were locally incorporated and had a high level of capital that is committed to support their domestic operations.
As at end-August 2008, the risk-weighted capital ratio for these foreign financial institutions was at 12.6%.
KUALA LUMPUR: The Malaysian financial system can weather the global financial turmoil and remains resilient, says Bank Negara.
The central bank said on Tuesday that it has a fully developed supervisory and surveillance system. It was also continuously monitors all financial institutions under its purview and will take appropriate action to safeguard the soundness of the financial system.
“The (central) Bank stands ready to provide liquidity, whenever necessary, to financial institutions under its purview. The Bank is also closely engaging with the other monetary authorities in the region to monitor and respond with co-ordinated measures in managing the current challenging environment,” it said.
Commenting on the resilience of the local financial institutions, it said this was due to several years of reforms, institutional development and capacity building, continuous efforts to enhance corporate governance and risk management standards and practices.
Bank Negara said the level of non-performing loans had also improved to 2.5%. It said the standardised approach of the Basel II capital adequacy framework was implemented effective January 2008.
“There is also ample liquidity in Malaysia’s financial system to facilitate the orderly functioning of economic and financing activities,” it said.
As at end-August 2008, net interbank placements with Bank Negara by the banking system totalled RM198.5bil.
“The banking and insurance industries are therefore operating with adequate capital and liquidity buffers that have been accumulated over several years.
Malaysia’s financial institutions also have negligible exposure to both sub-prime related securities and to the affected financial institutions of other countries, with more than 90% of total assets of the banks and insurance companies in ringgit denominated assets.
Bank Negara also said all foreign financial institutions in Malaysia were locally incorporated and had a high level of capital that is committed to support their domestic operations.
As at end-August 2008, the risk-weighted capital ratio for these foreign financial institutions was at 12.6%.
The RM 2.4 billion Telecom HSBB (High Speed Broadband) subsidy
Source MP KitSiang
Why is Telekom subsidised with RM2.4 billion of tax payer’s money for the HSBB project when an alternative proposal do not require subsidy? Why wasn’t there an open tender to choose the best proposal?
Why does the govt think Telekom is the best company to role out HSSB in spite of the fact that Telekom failed to achieve the national objective of high internet penetration after more than 10 years?
Simple economics will tell that a competitive environment will produce the results the country wants.
Besides failure to deliver the numbers (high internet and broadband penetration) and despite the fact that Telekom is a laughing stock because TMnet is well known for bad quality of service, the govt persist to award the next generation broadband project to Telekom.
HSBT (High Speed Broadband Technology Sdn Bhd) has offered to build a similar network without subsidy. Even if the govt deem HSBT inexperienced to carry out such a large project, wouldn’t the fact that their not requiring a subsidy tell them a subsidy may not be required?
Why then does the govt. need to provide public funds especially in this financially troubled time? The money will be better spent on the rakyat.
Since public money is involved, why wasn’t there an open tender? The govt should justify the rationale and provide details.
To make it worse, Telekom’s HSSB network is only a partially open network when it is known globally that such an infrastructure should be open and accessible to other broadband providers such as in S’pore. Furthermore, the govt did not have specific terms for the sharing of the HSSB network with other service providers.
Telekom has said screening will be done to allow competition that adds value to the industry, country and consumer. The term ’screening’ is bad enough while the part on adding value is open to interpretation.
A similar initiative, “Equal access plan for fixed line phone” introduced a decade ago supposedly to encourage competition in the ISP industry failed miserably. It played to Telekom’s hand to stunt the rise of serious competitors.
It is amazing that the govt continued to allow Telekom to use vague words when Telekom has shown this bad faith previously. Doesn’t the govt learn?
In spite of openly talking about increasing internet penetration and quality, the failure of Telekom to deliver still encourages the govt to dish out the same and to support Telekom further. There is no real competition for broadband in the country.
Can anyone say that Telekom’s 95% share of the market shows M’sia has liberalised the broadband service provider industry effectively?
What the country needs to propel itself forward in the information age is true liberalisation and not simply pay lip service to it. The HSSB project awarded to Telekom will only strengthen their already dominant position.
Will the govt force Telekom to adopt open access where any service provider can use the HSSB network to reach their customers when it is constructed? This is the way to create competition to provide the best service at reasonable prices, vital in order to develop the content and IT industry here.
A few questions to conclude:
• Isn’t the RM2.4 billion subsidy unfair, Telekom is already too dominant?
• Why allow Telekom to defer third party full access to the HSSB network for 7 years when Telekom is already the dominant player? It will be their right if they funded it 100% themselves but with public funds, there should be no delay at all.
• Will the govt listen to all stakeholders – the public, IT industry and broadband industry as to the best way forward for the HSSB project through a study because it is now a public project with public funds involved?
• Why is the govt protecting the revenue of one entity Telekom when true liberalisation will develop the industry, potentially returning revenue many times more for the country?
• Will the govt put in a proviso in the agreement with Telekom HSSB project to ensure open access to all service providers at reasonable price that includes annual audit by a third party? Failing this, will the govt ensure since there is interest, for at least one more HSSB provider within a year? Competition must be created.
Why is Telekom subsidised with RM2.4 billion of tax payer’s money for the HSBB project when an alternative proposal do not require subsidy? Why wasn’t there an open tender to choose the best proposal?
Why does the govt think Telekom is the best company to role out HSSB in spite of the fact that Telekom failed to achieve the national objective of high internet penetration after more than 10 years?
Simple economics will tell that a competitive environment will produce the results the country wants.
Besides failure to deliver the numbers (high internet and broadband penetration) and despite the fact that Telekom is a laughing stock because TMnet is well known for bad quality of service, the govt persist to award the next generation broadband project to Telekom.
HSBT (High Speed Broadband Technology Sdn Bhd) has offered to build a similar network without subsidy. Even if the govt deem HSBT inexperienced to carry out such a large project, wouldn’t the fact that their not requiring a subsidy tell them a subsidy may not be required?
Why then does the govt. need to provide public funds especially in this financially troubled time? The money will be better spent on the rakyat.
Since public money is involved, why wasn’t there an open tender? The govt should justify the rationale and provide details.
To make it worse, Telekom’s HSSB network is only a partially open network when it is known globally that such an infrastructure should be open and accessible to other broadband providers such as in S’pore. Furthermore, the govt did not have specific terms for the sharing of the HSSB network with other service providers.
Telekom has said screening will be done to allow competition that adds value to the industry, country and consumer. The term ’screening’ is bad enough while the part on adding value is open to interpretation.
A similar initiative, “Equal access plan for fixed line phone” introduced a decade ago supposedly to encourage competition in the ISP industry failed miserably. It played to Telekom’s hand to stunt the rise of serious competitors.
It is amazing that the govt continued to allow Telekom to use vague words when Telekom has shown this bad faith previously. Doesn’t the govt learn?
In spite of openly talking about increasing internet penetration and quality, the failure of Telekom to deliver still encourages the govt to dish out the same and to support Telekom further. There is no real competition for broadband in the country.
Can anyone say that Telekom’s 95% share of the market shows M’sia has liberalised the broadband service provider industry effectively?
What the country needs to propel itself forward in the information age is true liberalisation and not simply pay lip service to it. The HSSB project awarded to Telekom will only strengthen their already dominant position.
Will the govt force Telekom to adopt open access where any service provider can use the HSSB network to reach their customers when it is constructed? This is the way to create competition to provide the best service at reasonable prices, vital in order to develop the content and IT industry here.
A few questions to conclude:
• Isn’t the RM2.4 billion subsidy unfair, Telekom is already too dominant?
• Why allow Telekom to defer third party full access to the HSSB network for 7 years when Telekom is already the dominant player? It will be their right if they funded it 100% themselves but with public funds, there should be no delay at all.
• Will the govt listen to all stakeholders – the public, IT industry and broadband industry as to the best way forward for the HSSB project through a study because it is now a public project with public funds involved?
• Why is the govt protecting the revenue of one entity Telekom when true liberalisation will develop the industry, potentially returning revenue many times more for the country?
• Will the govt put in a proviso in the agreement with Telekom HSSB project to ensure open access to all service providers at reasonable price that includes annual audit by a third party? Failing this, will the govt ensure since there is interest, for at least one more HSSB provider within a year? Competition must be created.
Petrol prices reduced
Source TheStar
KUALA LUMPUR: Petrol prices will be reduced by a further 10sen to 20sen from Wednesday.
RON 97 petrol is reduced by 15sen to RM2.30; RON 92 petrol is reduced by 10sen to RM2.20; and diesel is reduced by 20sen to RM2.20.
A post on the Prime Minister's Office website (wwww.pmo.gov.my) said the decision was made following the marked drop in the global oil price of late.
"The lowering of the fuel prices is also made to speed up the reduction of retail prices so that the people will be able to enjoy the benefits sooner," the post added.
The statement was signed by Prime Minister Datuk Seri Abdullah Ahmad Badawi.
The previous two reductions were on Aug 23 and Sept 24.
KUALA LUMPUR: Petrol prices will be reduced by a further 10sen to 20sen from Wednesday.
RON 97 petrol is reduced by 15sen to RM2.30; RON 92 petrol is reduced by 10sen to RM2.20; and diesel is reduced by 20sen to RM2.20.
A post on the Prime Minister's Office website (wwww.pmo.gov.my) said the decision was made following the marked drop in the global oil price of late.
"The lowering of the fuel prices is also made to speed up the reduction of retail prices so that the people will be able to enjoy the benefits sooner," the post added.
The statement was signed by Prime Minister Datuk Seri Abdullah Ahmad Badawi.
The previous two reductions were on Aug 23 and Sept 24.
Our strong and weak economic fundamentals
Source MP KitSiang
The Prime Minister, Datuk Seri Abdullah Ahmad Badawi’s repetition that Malaysia will not be hit by global financial meltdown is most disturbing.
Malaysia’s past economic performance was in part linked to high rates of domestic savings and FDI flows. Capital was readily available; it was directed by the state, not necessarily into the most productive sectors. Paul Krugeman, the much acclaimed economist now awarded the 2008 Nobel Prize for Economics, in this analysis about the Malaysian economy had drawn attention to this issue and questioned the capacity of the country to remain competitive.
It is indeed remarkable that no heed was paid this feature of policies. Both in the Mahathir and Abdullah eras the essential economic policies remained unchanged - directed investments into large projects with low returns; a less than transparent and accountable use of national resources thus contributing to the growing level of corruption and abuse.
The exploitation of oil and gas resources in an unaccountable manner led markets to recognize the unsustainable nature of the Malaysian development pattern. Malaysia has in this regard adopted some of the first possible features of the Latin American economic development path. It would appear that no account is being taken of the changed circumstances.
The Second Minister, who must take responsibility for much of preparation of the gravely flawed 2008 budget. It is indeed most troubling that despite the catastrophic developments in the global economic scene in recent weeks continues to mouth statements that Malaysian economic fundamentals remain strong; that Malaysian growth rates will be only marginally lower in the year ahead; in ward FDI flows remain high; foreign exchange levels are sufficient to finance 9 months of imports and thus Malaysia will not feel the full impact of the ongoing crisis.
These and similar statements have been articulated by the Prime Minister and the Deputy Prime Minister. These statements are created with a degree of disbelief by investors and by the markets and rating agencies as they do not deal with the fundamental weaknesses associated with high inflation, a unsustainable budget deficit out flows of capital and a mountain of contingent liabilities made up of guarantees that have been signed as part of the various toll and other concessions.
There is a state of denial and Ministers appear to operate under the assumption that markets and the private sector will accept Ministerial pontifications as the true elaboration of the current economic scene. Further, they assume that upbeat and fanciful statements are sufficient to lull markets. If anything these statements have the opposite effect.
It patently clear to all and sundry that Malaysia is a small economy, open and therefore vulnerable to developments in the global economy. It is not insulated or protected; it is dependent on inflows of FDI; its growth and prosperity are linked to exports of commodities and manufactures; demand and price developments in the global markets have a direct impact on output growth, employment and prosperity.
Given these circumstances, the current global crisis will inevitably impact on the flows of FDI, the demand for its exports ( both manufactures and commodities), a deterioration in export prices. These externally generated impulses will inevitably be transmitted into the domestic economy and result in lower growth, a worsened labor market and a decline in consumption. In brief, Malaysia faces a severe and bleak economic outlook.
The danger to the economy is even greater when account is taken of the already poor economic fundamentals represented by:
• The highest rate of inflation experienced (8.5%) over the past quarter century;
• An unsustainable fiscal deficit projected at 4.8% this year and 3.6 next year both of which are going to be higher;
• Billions of dollars of hidden contingent liabilities - akin to IOUs written to GLCs, crony corporations; an unendingly flow of subsidies to private entities that believe in the notion that profits can be privatized while losses are to be nationalized;
• An interest policy that has been irresponsible and largely favored to help over-leveraged “friends” of the BN and to keep Government borrowing costs low;
• A manipulated and less than transparent exchange rate policy that has contributed to imported inflation;
• The policy of “no bid” award of tenders and projects to BN connected companies and contractors that has contributed to increased project costs;
• The loss of competitiveness through corruption and more governance; and
• Credit rating agencies had lowered Malaysia’s ratings
This list is not exhaustive but indicative of how the economic fundamentals have deteriorated in the recent past.
The Prime Minister, Datuk Seri Abdullah Ahmad Badawi’s repetition that Malaysia will not be hit by global financial meltdown is most disturbing.
Malaysia’s past economic performance was in part linked to high rates of domestic savings and FDI flows. Capital was readily available; it was directed by the state, not necessarily into the most productive sectors. Paul Krugeman, the much acclaimed economist now awarded the 2008 Nobel Prize for Economics, in this analysis about the Malaysian economy had drawn attention to this issue and questioned the capacity of the country to remain competitive.
It is indeed remarkable that no heed was paid this feature of policies. Both in the Mahathir and Abdullah eras the essential economic policies remained unchanged - directed investments into large projects with low returns; a less than transparent and accountable use of national resources thus contributing to the growing level of corruption and abuse.
The exploitation of oil and gas resources in an unaccountable manner led markets to recognize the unsustainable nature of the Malaysian development pattern. Malaysia has in this regard adopted some of the first possible features of the Latin American economic development path. It would appear that no account is being taken of the changed circumstances.
The Second Minister, who must take responsibility for much of preparation of the gravely flawed 2008 budget. It is indeed most troubling that despite the catastrophic developments in the global economic scene in recent weeks continues to mouth statements that Malaysian economic fundamentals remain strong; that Malaysian growth rates will be only marginally lower in the year ahead; in ward FDI flows remain high; foreign exchange levels are sufficient to finance 9 months of imports and thus Malaysia will not feel the full impact of the ongoing crisis.
These and similar statements have been articulated by the Prime Minister and the Deputy Prime Minister. These statements are created with a degree of disbelief by investors and by the markets and rating agencies as they do not deal with the fundamental weaknesses associated with high inflation, a unsustainable budget deficit out flows of capital and a mountain of contingent liabilities made up of guarantees that have been signed as part of the various toll and other concessions.
There is a state of denial and Ministers appear to operate under the assumption that markets and the private sector will accept Ministerial pontifications as the true elaboration of the current economic scene. Further, they assume that upbeat and fanciful statements are sufficient to lull markets. If anything these statements have the opposite effect.
It patently clear to all and sundry that Malaysia is a small economy, open and therefore vulnerable to developments in the global economy. It is not insulated or protected; it is dependent on inflows of FDI; its growth and prosperity are linked to exports of commodities and manufactures; demand and price developments in the global markets have a direct impact on output growth, employment and prosperity.
Given these circumstances, the current global crisis will inevitably impact on the flows of FDI, the demand for its exports ( both manufactures and commodities), a deterioration in export prices. These externally generated impulses will inevitably be transmitted into the domestic economy and result in lower growth, a worsened labor market and a decline in consumption. In brief, Malaysia faces a severe and bleak economic outlook.
The danger to the economy is even greater when account is taken of the already poor economic fundamentals represented by:
• The highest rate of inflation experienced (8.5%) over the past quarter century;
• An unsustainable fiscal deficit projected at 4.8% this year and 3.6 next year both of which are going to be higher;
• Billions of dollars of hidden contingent liabilities - akin to IOUs written to GLCs, crony corporations; an unendingly flow of subsidies to private entities that believe in the notion that profits can be privatized while losses are to be nationalized;
• An interest policy that has been irresponsible and largely favored to help over-leveraged “friends” of the BN and to keep Government borrowing costs low;
• A manipulated and less than transparent exchange rate policy that has contributed to imported inflation;
• The policy of “no bid” award of tenders and projects to BN connected companies and contractors that has contributed to increased project costs;
• The loss of competitiveness through corruption and more governance; and
• Credit rating agencies had lowered Malaysia’s ratings
This list is not exhaustive but indicative of how the economic fundamentals have deteriorated in the recent past.
Prepare to lose jobs in Singapore
Source TheStar
SINGAPORE: The 300,000 Malaysians employed in the island republic have been advised to gear up for retrenchment if the country continues to slide into a recession.
Human Resources Minister Datuk Dr S. Subramaniam said that although the technical recession experienced by Singapore has not yet translated into unemployment, it was better for Malaysians to be prepared.
“If there is unemployment due to a recession, our workers will be hit,” he told The Star here yesterday.
“They need to work on retraining and acquiring new skills to ensure they have jobs during such times.”
He said that Malaysians accounted for about 30% of the foreign workforce in Singapore.
Dr Subramaniam said that many of the Malaysian workers in Singapore were unskilled and employed in the manufacturing sector.
Asked about whether the ministry had a contingency plan for such a situation in Malaysia, he said that Malaysia would have excess job vacancies as work presently being done by foreigners could be offered to locals instead.
According to economic data released by Singapore’s Ministry of Trade and Industry, the island republic will be the first Asian economy to fall into a technical recession.
A technical recession is generally defined as two consecutive quarters of contraction in economic output.
Dr Subramaniam, after an hour-long meeting with his Singapore counterpart Gan Kim Yong, said they had discussed various issues.
On instances of Malaysian workers being cheated in Singapore, he said that the Malaysian High Commission had received 1,250 complaints within the first nine months of this year.
Dr Subramaniam added that there was something wrong with the recruitment mechanism and the ministry would have to check on the matter.
SINGAPORE: The 300,000 Malaysians employed in the island republic have been advised to gear up for retrenchment if the country continues to slide into a recession.
Human Resources Minister Datuk Dr S. Subramaniam said that although the technical recession experienced by Singapore has not yet translated into unemployment, it was better for Malaysians to be prepared.
“If there is unemployment due to a recession, our workers will be hit,” he told The Star here yesterday.
“They need to work on retraining and acquiring new skills to ensure they have jobs during such times.”
He said that Malaysians accounted for about 30% of the foreign workforce in Singapore.
Dr Subramaniam said that many of the Malaysian workers in Singapore were unskilled and employed in the manufacturing sector.
Asked about whether the ministry had a contingency plan for such a situation in Malaysia, he said that Malaysia would have excess job vacancies as work presently being done by foreigners could be offered to locals instead.
According to economic data released by Singapore’s Ministry of Trade and Industry, the island republic will be the first Asian economy to fall into a technical recession.
A technical recession is generally defined as two consecutive quarters of contraction in economic output.
Dr Subramaniam, after an hour-long meeting with his Singapore counterpart Gan Kim Yong, said they had discussed various issues.
On instances of Malaysian workers being cheated in Singapore, he said that the Malaysian High Commission had received 1,250 complaints within the first nine months of this year.
Dr Subramaniam added that there was something wrong with the recruitment mechanism and the ministry would have to check on the matter.
Thai troops deployed to cope with Cambodia
Source CTCentral
PHNOM PENH, Cambodia (AP) -- Thailand vowed it was ready to respond militarily if attacked by Cambodia after its smaller neighbor issued an ultimatum for Thai troops to pull back from disputed border territory by midday Tuesday.
Thailand moved more troops to an area nearby late Tuesday, but strictly as a defensive measure, said a senior Thai army officer.
The troops on both sides remained only about 100 yards apart, said Gen. Viboonsak Neepan, the Thai Army commander for the region.
"We have sent more troops to be stationed near the area but only enough to resist (an attack). We will not attack first," Viboonsak said. He did not specify how many troops were sent.
Despite increasingly heated rhetoric - including a description by Cambodia's prime minister of the contested land as "a life-and-death battle zone" - fighting did not break out, although the two countries disagreed on who backed down.
Thailand's prime minister said his country's troops had been on their own territory all along.
"If there is a problem, we will use peaceful means with an emphasis on negotiations," said Thai Prime Minister Somchai Wongsawat. "We will not be an invader." Somchai is also under intense political pressure at home from anti-government militants seeking his resignation.
The dispute is over the land around Preah Vihear, an 11th century temple long claimed by both countries but awarded to Cambodia by the World Court in 1962. Sovereignty over some of the land around the temple has not been clearly resolved.
Cambodian Prime Minister Hun Sen said Tuesday morning that Thai troops had tried a day earlier to advance into Cambodia's territory but Cambodian soldiers "waved them back and said, 'If you want to die, keep coming.'"
"They must withdraw," Hun Sen said in a speech in the capital, Phnom Penh. "I have set the timeline for them to withdraw by 12 o'clock."
Cambodian army commander Brig. Gen. Yim Pim later said all Thai troops had retreated about 90 minutes ahead of the deadline and were back inside their camp about half a mile from the contested territory.
"The tense situation has now eased," Yim Pim told The Associated Press.
PHNOM PENH, Cambodia (AP) -- Thailand vowed it was ready to respond militarily if attacked by Cambodia after its smaller neighbor issued an ultimatum for Thai troops to pull back from disputed border territory by midday Tuesday.
Thailand moved more troops to an area nearby late Tuesday, but strictly as a defensive measure, said a senior Thai army officer.
The troops on both sides remained only about 100 yards apart, said Gen. Viboonsak Neepan, the Thai Army commander for the region.
"We have sent more troops to be stationed near the area but only enough to resist (an attack). We will not attack first," Viboonsak said. He did not specify how many troops were sent.
Despite increasingly heated rhetoric - including a description by Cambodia's prime minister of the contested land as "a life-and-death battle zone" - fighting did not break out, although the two countries disagreed on who backed down.
Thailand's prime minister said his country's troops had been on their own territory all along.
"If there is a problem, we will use peaceful means with an emphasis on negotiations," said Thai Prime Minister Somchai Wongsawat. "We will not be an invader." Somchai is also under intense political pressure at home from anti-government militants seeking his resignation.
The dispute is over the land around Preah Vihear, an 11th century temple long claimed by both countries but awarded to Cambodia by the World Court in 1962. Sovereignty over some of the land around the temple has not been clearly resolved.
Cambodian Prime Minister Hun Sen said Tuesday morning that Thai troops had tried a day earlier to advance into Cambodia's territory but Cambodian soldiers "waved them back and said, 'If you want to die, keep coming.'"
"They must withdraw," Hun Sen said in a speech in the capital, Phnom Penh. "I have set the timeline for them to withdraw by 12 o'clock."
Cambodian army commander Brig. Gen. Yim Pim later said all Thai troops had retreated about 90 minutes ahead of the deadline and were back inside their camp about half a mile from the contested territory.
"The tense situation has now eased," Yim Pim told The Associated Press.
Credit crisis casts gloom over China's exporters
Source AzFamily
BEIJING (AP) -- As they prepare for China's biggest export fair this week, managers at Shunde Xiongfeng Electric Industrial Co. are anxious.
Sales of electric fans are down this year, and the financial crisis will likely further cut demand from overseas. The 5,000-employee company in the southern city of Shunde, near Hong Kong, sold 6 million electric fans abroad last year.
"We are worried that if our clients are short of capital, they might shut down," said Shunde's export manager, who would only give his surname, Zeng. "That's certainly bad for us."
China has been known as the world's factory for everything from toys to T-shirts, and exports have powered its growth in recent years. But exports are taking a hit from the global financial crisis because of lower demand from overseas and tightening credit from state-owned banks.
A slowdown in Chinese exports would ripple through the world economy as China imports fewer raw materials, half-finished goods for assembly and supplies, such as Australian iron ore or factory equipment from the United States, Europe and Japan. Raw materials used for exports made up half of China's nearly US$1 trillion in imports last year.
China's economy is still expected to expand by at least 9 percent this year, and its banks are flush with cash and hold little risky debt. But its economy has been weakened by a bursting housing bubble and an anemic stock market, and the hope that China's appetite for imports will rescue other countries has been tempered. China accounted for a third of global economic growth in 2007, according to the World Bank.
"We still believe that China's growth will be relatively robust. That is helpful for the world economy," said Louis Kuijs, the World Bank's senior economist in Beijing. "Unfortunately, one economy like China will not be enough to keep world growth going....China just isn't big enough."
The Canton Fair, which opens Wednesday, will offer a measure of demand for Chinese goods, as exporters and customers gather in Guangzhou, the heart of China's export-driven manufacturing industries. Philip Richardson, an American who manufactures high-end stereo speakers in Guangzhou, said orders from the U.S. have dropped over the past two weeks.
"When they see the markets go down, they stop buying," he said.
Customers have canceled meetings with him at a Hong Kong trade show next week. Nine of 12 retailers have backed out of visits to his factory in the past two weeks. And as he stood talking, Richardson received a phone call from the Chinese vendor who makes his stereo cabinets. The vendor said he had lost so many orders that he could not pay his employees, and asked Richardson to pay early on a bill due next month.
The financial crisis is the latest blow in an export situation that was already weakening along with the U.S. and European economies. According to customs figures, the growth rate for China's exports in the first quarter of the year declined for the first time in three years. Exports make up just 5 percent of China's economic output, but account for about 20 percent of growth.
Foreign sales of Chinese-made electric fans fell 21 percent in July from the same month last year, according the Chinese Household Electric Appliance Association. In a survey last month, the central bank said export orders at Chinese factories had fallen to their lowest level since 2005. One of the country's largest garment makers, Zhejiang Jianglong Textile Printing and Dying Co., went bankrupt last week.
"I don't think the economy has troughed," said Tao Wang, a UBS economist in Beijing. "That will affect China's demand for commodities, machinery and so on. In the next six months, I think imports from all these countries will slow."
The Tianjin Excellent Import & Export Co. southeast of Beijing expects this year's sales to drop to half the 2007 level of US$50 million. The company is trying to boost sales to Japan and other markets and might have to fire some of its 100 employees, its manager said.
"We don't have a better strategy yet to maintain the business," said the manager, who would only give his last name, Yang. "If we export US$1 million and need 50 people, then that falls to $10,000, you can do the math."
Exporters are also having a harder time getting credit because China's state-owned banks are trying to cut loans to companies with exposure to foreign risks, said Nan Hanxin, a banking industry analyst for Central China Securities. They now favor monopoly state-owned companies with high credit, Nan said.
The weakening of exports from China is showing up in fewer purchases of raw materials from other countries. China's appliance makers buy so much wire that a fall in export demand has led to a 23 percent drop in global copper prices since July, according to Standard Chartered Bank.
China's imports are also hurt by a slowdown in its domestic market. As both real estate and stock market values have declined, consumers are no longer as able or willing to spend on big-ticket items, auto market research firm J.D. Power and Associates said in a report.
For example, automakers counted on China to drive revenues as sales dropped in North America and Europe. But sales of Ford Motor Co. vehicles in China dropped 28 percent in August from the same month last year, while Volkswagen AG was down 20 percent and General Motors Corp. was off 16 percent, according to J.D. Power.
Slower real estate sales have cut demand for steel. Four major Chinese steel mills are responding by cutting output 20 percent, the government newspaper China Securities Journal said. That in turn erodes demand for iron ore.
Last year, the Canton Fair drew 190,000 buyers from 200 countries. But this year Shi Hong, general manager at a bicycle exporter, plans to skip the fair for a sales trip to Europe.
Shi said orders are down and retailers in Britain and France have put off submitting sales forecasts.
"We've already cut our costs," he said. "We fired three employees, one-fifth of our team."
BEIJING (AP) -- As they prepare for China's biggest export fair this week, managers at Shunde Xiongfeng Electric Industrial Co. are anxious.
Sales of electric fans are down this year, and the financial crisis will likely further cut demand from overseas. The 5,000-employee company in the southern city of Shunde, near Hong Kong, sold 6 million electric fans abroad last year.
"We are worried that if our clients are short of capital, they might shut down," said Shunde's export manager, who would only give his surname, Zeng. "That's certainly bad for us."
China has been known as the world's factory for everything from toys to T-shirts, and exports have powered its growth in recent years. But exports are taking a hit from the global financial crisis because of lower demand from overseas and tightening credit from state-owned banks.
A slowdown in Chinese exports would ripple through the world economy as China imports fewer raw materials, half-finished goods for assembly and supplies, such as Australian iron ore or factory equipment from the United States, Europe and Japan. Raw materials used for exports made up half of China's nearly US$1 trillion in imports last year.
China's economy is still expected to expand by at least 9 percent this year, and its banks are flush with cash and hold little risky debt. But its economy has been weakened by a bursting housing bubble and an anemic stock market, and the hope that China's appetite for imports will rescue other countries has been tempered. China accounted for a third of global economic growth in 2007, according to the World Bank.
"We still believe that China's growth will be relatively robust. That is helpful for the world economy," said Louis Kuijs, the World Bank's senior economist in Beijing. "Unfortunately, one economy like China will not be enough to keep world growth going....China just isn't big enough."
The Canton Fair, which opens Wednesday, will offer a measure of demand for Chinese goods, as exporters and customers gather in Guangzhou, the heart of China's export-driven manufacturing industries. Philip Richardson, an American who manufactures high-end stereo speakers in Guangzhou, said orders from the U.S. have dropped over the past two weeks.
"When they see the markets go down, they stop buying," he said.
Customers have canceled meetings with him at a Hong Kong trade show next week. Nine of 12 retailers have backed out of visits to his factory in the past two weeks. And as he stood talking, Richardson received a phone call from the Chinese vendor who makes his stereo cabinets. The vendor said he had lost so many orders that he could not pay his employees, and asked Richardson to pay early on a bill due next month.
The financial crisis is the latest blow in an export situation that was already weakening along with the U.S. and European economies. According to customs figures, the growth rate for China's exports in the first quarter of the year declined for the first time in three years. Exports make up just 5 percent of China's economic output, but account for about 20 percent of growth.
Foreign sales of Chinese-made electric fans fell 21 percent in July from the same month last year, according the Chinese Household Electric Appliance Association. In a survey last month, the central bank said export orders at Chinese factories had fallen to their lowest level since 2005. One of the country's largest garment makers, Zhejiang Jianglong Textile Printing and Dying Co., went bankrupt last week.
"I don't think the economy has troughed," said Tao Wang, a UBS economist in Beijing. "That will affect China's demand for commodities, machinery and so on. In the next six months, I think imports from all these countries will slow."
The Tianjin Excellent Import & Export Co. southeast of Beijing expects this year's sales to drop to half the 2007 level of US$50 million. The company is trying to boost sales to Japan and other markets and might have to fire some of its 100 employees, its manager said.
"We don't have a better strategy yet to maintain the business," said the manager, who would only give his last name, Yang. "If we export US$1 million and need 50 people, then that falls to $10,000, you can do the math."
Exporters are also having a harder time getting credit because China's state-owned banks are trying to cut loans to companies with exposure to foreign risks, said Nan Hanxin, a banking industry analyst for Central China Securities. They now favor monopoly state-owned companies with high credit, Nan said.
The weakening of exports from China is showing up in fewer purchases of raw materials from other countries. China's appliance makers buy so much wire that a fall in export demand has led to a 23 percent drop in global copper prices since July, according to Standard Chartered Bank.
China's imports are also hurt by a slowdown in its domestic market. As both real estate and stock market values have declined, consumers are no longer as able or willing to spend on big-ticket items, auto market research firm J.D. Power and Associates said in a report.
For example, automakers counted on China to drive revenues as sales dropped in North America and Europe. But sales of Ford Motor Co. vehicles in China dropped 28 percent in August from the same month last year, while Volkswagen AG was down 20 percent and General Motors Corp. was off 16 percent, according to J.D. Power.
Slower real estate sales have cut demand for steel. Four major Chinese steel mills are responding by cutting output 20 percent, the government newspaper China Securities Journal said. That in turn erodes demand for iron ore.
Last year, the Canton Fair drew 190,000 buyers from 200 countries. But this year Shi Hong, general manager at a bicycle exporter, plans to skip the fair for a sales trip to Europe.
Shi said orders are down and retailers in Britain and France have put off submitting sales forecasts.
"We've already cut our costs," he said. "We fired three employees, one-fifth of our team."
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