FOR MORE INFOFriday, June 18, 2010
NEM Offers Fresh Perspective
June 18, 2010 | By Christine Lim
NEM Offers Fresh Perspective For EU-Malaysia FTA Negotiations, Says EU Envoy
KUALA LUMPUR, June 18 (Bernama) -- Malaysia's New Economic Model which emphasizes on the services sector will create new areas of cooperation between European Union and Malaysia, says EU Ambassador to Malaysia, Vincent Piket.
The EU, which will go into a second round of meetings with Ministry of International Trade and Industry next month, in exploration of a Free Trade Agreement (FTA) negotiations with Malaysia, is confident of establishing common grounds for negotiations.
"At the moment we are at the phase of exploratory talks on the basic outline of negotiations," he said at a press conference held in conjunction with his visit to Bernama and a talk on "EU Trade Policy: What it means to Malaysia."
"We had a full meeting last week and are looking at the results. There is a need to look at new perspective to boost business with current economic climate in Europe and Malaysia," Piket said.
The EU is currently negotiating with Singapore and Vietnam for FTA.
While it had originally planned for a FTA with Asean, it opted to negotiate with individual countries with hopes of grouping it under one entity later on.
"EU continues to be interested in the EU Asean FTA. That is our long term goal. Asean and EU has concluded that right now constructing a region to region FTA is not feasible," he said.
On FTA negotiations, Piket said there would be inherent challenges for the success of any FTA with the high standards specified by the World Trade Organization framework.
Policies on sustainable development, labour and environment, would be among the major challenges in negotiations, he said.
"The same goes for public and government procurement, where the EU wishes to negotiate market access," he said.
To a question on problems faced by Malaysian palm oil exporters in the EU market, Piket clarified that while there were certain EU conditions to fulfill for biofuel exporters wishing to gain in terms of incentives and subsidies, there were no restrictions to biofuel being exported.
The conditions set for gaining incentives meanwhile include the sustainable production of biofuel, he explained.
He said the EU-wide sustainability standards due to come into effect by the end of the year would call for certification schemes designed to ensure biofuels are produced in an environmentally sustainable manner.
He also said that there were no restrictions on edible palm oil exported to the EU, adding that it was the non-governmental organisations in EU that were strongly lobbying for conditions on edible palm oil exports.
-- BERNAMA
NEM Offers Fresh Perspective For EU-Malaysia FTA Negotiations, Says EU Envoy
KUALA LUMPUR, June 18 (Bernama) -- Malaysia's New Economic Model which emphasizes on the services sector will create new areas of cooperation between European Union and Malaysia, says EU Ambassador to Malaysia, Vincent Piket.
The EU, which will go into a second round of meetings with Ministry of International Trade and Industry next month, in exploration of a Free Trade Agreement (FTA) negotiations with Malaysia, is confident of establishing common grounds for negotiations.
"At the moment we are at the phase of exploratory talks on the basic outline of negotiations," he said at a press conference held in conjunction with his visit to Bernama and a talk on "EU Trade Policy: What it means to Malaysia."
"We had a full meeting last week and are looking at the results. There is a need to look at new perspective to boost business with current economic climate in Europe and Malaysia," Piket said.
The EU is currently negotiating with Singapore and Vietnam for FTA.
While it had originally planned for a FTA with Asean, it opted to negotiate with individual countries with hopes of grouping it under one entity later on.
"EU continues to be interested in the EU Asean FTA. That is our long term goal. Asean and EU has concluded that right now constructing a region to region FTA is not feasible," he said.
On FTA negotiations, Piket said there would be inherent challenges for the success of any FTA with the high standards specified by the World Trade Organization framework.
Policies on sustainable development, labour and environment, would be among the major challenges in negotiations, he said.
"The same goes for public and government procurement, where the EU wishes to negotiate market access," he said.
To a question on problems faced by Malaysian palm oil exporters in the EU market, Piket clarified that while there were certain EU conditions to fulfill for biofuel exporters wishing to gain in terms of incentives and subsidies, there were no restrictions to biofuel being exported.
The conditions set for gaining incentives meanwhile include the sustainable production of biofuel, he explained.
He said the EU-wide sustainability standards due to come into effect by the end of the year would call for certification schemes designed to ensure biofuels are produced in an environmentally sustainable manner.
He also said that there were no restrictions on edible palm oil exported to the EU, adding that it was the non-governmental organisations in EU that were strongly lobbying for conditions on edible palm oil exports.
-- BERNAMA
Saturday, April 17, 2010
NEM to yield new class of citizens
KUALA LUMPUR: The New Economic Model (NEM) will reskill and retrain the bottom 40% of workers and turn them into a new crop of middle-class citizens, says Johor Baru MP Datuk Shahrir Samad.
“People at the bottom 40% do not have capital but they have the human resource. Re-skilling and retraining programmes will move them to higher income jobs, even as the country retools itself for a higher value economy,” Shahrir said.
The so-called bottom 40% are those currently earning RM1,500 or less a month. The NEM aims to double their income over the next 10 years, vaulting this group into a new middle-class. “What happened before was, we created billionaires, but because the foundation was not strong, it just took one financial crisis to wipe them out.
“If we had created the middle-class, then it’s more stable,” he added. He said now, the NEM would allow them to compete on the basis of technical “know-how”, rather the “who-you-know”. “It’s no longer top-down but it’s driven from the bottom.” — Bernama
“People at the bottom 40% do not have capital but they have the human resource. Re-skilling and retraining programmes will move them to higher income jobs, even as the country retools itself for a higher value economy,” Shahrir said.
The so-called bottom 40% are those currently earning RM1,500 or less a month. The NEM aims to double their income over the next 10 years, vaulting this group into a new middle-class. “What happened before was, we created billionaires, but because the foundation was not strong, it just took one financial crisis to wipe them out.
“If we had created the middle-class, then it’s more stable,” he added. He said now, the NEM would allow them to compete on the basis of technical “know-how”, rather the “who-you-know”. “It’s no longer top-down but it’s driven from the bottom.” — Bernama
Tuesday, April 6, 2010
Review power, toll deals, wages for NEM
KUALA LUMPUR, April 6 — The government must review power and toll concessions, and also introduce a minimum wage, if it wants Malaysia to be a high income nation under the New Economic Model (NEM), an economist said last night.
Bank Islam chief economist Azrul Azwar Ahmad Tajudin urged the Najib administration to make an in-depth review of the toll concession and Independent Power Producers (IPP) contracts, saying both were direct burdens to the people. “The consumers’ expenses have a big potential ... where it can be generated to contribute to the country’s growth,” he told an NEM forum organised by the Dewan Bahasa Pustaka (DBP) here.
The government last week unveiled the NEM to turn the country into a high-income nation and do away with subsidies and rent-seeking practises while ensuring affirmative action was needs-based. But Azrul Azwar said there were direct methods to achieve the NEM aims.
“I propose that the government review concessions for the highways and IPPs so that the people won’t be burdened with regular hikes every two to three years,” he said, adding a minimum wage policy would also accelerate the NEM goals.
The economist said both his suggestions would go towards reaching the NEM target of raising the per capita income from US$7,000 (RM22,628) to US$15,000 by 2020. Statistics show that some 80 per cent of the workforce has only SPM-level certificate which limits income potential and Azrul Azwar said any hikes would adversely impact workers.
“When there is a price hike, workers will feel the rise in cost of living and will be careful in spending money,” he pointed out.
But the Institute of Strategic and International Studies (ISIS) chief executive officer Dr Mahani Zainal Abidin said she could only agree to a minimum wage policy if the employers are given the mandate to sack workers who fail to meet productivity targets.
Mahani also said not all developed countries subscribe to a minimum wage.
“There are countries who do not follow the minimum wage system, including Singapore,” she said, adding there should be a salary hike mechanism agreeable to the government, employers and workers.
“For me, a minimum wage is possible with conditions,” said Mahani, reiterating the need for productivity targets and the employers’ right to dismiss workers who do not meet such targets.
Demands for the government to have minimum wage policies and review the concessions have cropped up over the years since it embarked on a privatisation programme in the 1980s particularly for tolled road projects where rates are adjusted annually and hikes implemented every three years.
In cases where there are no toll rate hikes, the government will have to compensate the toll concessionaires directly.
Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop said last month that the first phase of a toll road rate restructuring programme has been completed and the Economic Planning Unit (EPU) is in talks with the toll concessionaires and other quarters over the matter.
Nor Mohamed said the government was looking for the best mechanism to ensure the restructuring exercise will not impact on the low-income groups.
State power utility Tenaga Nasional Berhad (TNB) last year proposed the government to review the power production agreement with the IPPs to ensure it benefits the people.
TNB president and chief executive officer Datuk Seri Che Khalib Mohamad Noh had said that any savings from a renegotiation of rates with the IPPs would lead to lower tariff rates for the consumers.
Source : www.themalaysianinsider.com
Bank Islam chief economist Azrul Azwar Ahmad Tajudin urged the Najib administration to make an in-depth review of the toll concession and Independent Power Producers (IPP) contracts, saying both were direct burdens to the people. “The consumers’ expenses have a big potential ... where it can be generated to contribute to the country’s growth,” he told an NEM forum organised by the Dewan Bahasa Pustaka (DBP) here.
The government last week unveiled the NEM to turn the country into a high-income nation and do away with subsidies and rent-seeking practises while ensuring affirmative action was needs-based. But Azrul Azwar said there were direct methods to achieve the NEM aims.
“I propose that the government review concessions for the highways and IPPs so that the people won’t be burdened with regular hikes every two to three years,” he said, adding a minimum wage policy would also accelerate the NEM goals.
The economist said both his suggestions would go towards reaching the NEM target of raising the per capita income from US$7,000 (RM22,628) to US$15,000 by 2020. Statistics show that some 80 per cent of the workforce has only SPM-level certificate which limits income potential and Azrul Azwar said any hikes would adversely impact workers.
“When there is a price hike, workers will feel the rise in cost of living and will be careful in spending money,” he pointed out.
But the Institute of Strategic and International Studies (ISIS) chief executive officer Dr Mahani Zainal Abidin said she could only agree to a minimum wage policy if the employers are given the mandate to sack workers who fail to meet productivity targets.
Mahani also said not all developed countries subscribe to a minimum wage.
“There are countries who do not follow the minimum wage system, including Singapore,” she said, adding there should be a salary hike mechanism agreeable to the government, employers and workers.
“For me, a minimum wage is possible with conditions,” said Mahani, reiterating the need for productivity targets and the employers’ right to dismiss workers who do not meet such targets.
Demands for the government to have minimum wage policies and review the concessions have cropped up over the years since it embarked on a privatisation programme in the 1980s particularly for tolled road projects where rates are adjusted annually and hikes implemented every three years.
In cases where there are no toll rate hikes, the government will have to compensate the toll concessionaires directly.
Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop said last month that the first phase of a toll road rate restructuring programme has been completed and the Economic Planning Unit (EPU) is in talks with the toll concessionaires and other quarters over the matter.
Nor Mohamed said the government was looking for the best mechanism to ensure the restructuring exercise will not impact on the low-income groups.
State power utility Tenaga Nasional Berhad (TNB) last year proposed the government to review the power production agreement with the IPPs to ensure it benefits the people.
TNB president and chief executive officer Datuk Seri Che Khalib Mohamad Noh had said that any savings from a renegotiation of rates with the IPPs would lead to lower tariff rates for the consumers.
Source : www.themalaysianinsider.com
Friday, April 2, 2010
Nazri: Perkasa are Opportunists
KUALA LUMPUR: Minister in the Prime Minister’s Department Datuk Seri Nazri Abd Aziz labelled Perkasa as “political opportunists” for disagreeing with the suggestion to set up the Equal Opportunity Commission (EOC) under the New Economy Model unveiled by the Prime Minister.He said Article 153 would not be in “any jeopardy” as the EOC was subjected to the framework of the Constitution. “You can have the Equal Opportunity Commission subject to the requirements of the Constitution. Equal opportunity for all must be subject to the provisions of the Constitution,” Nazri said when contacted.
Perkasa president Datuk Ibrahim Ali had said the EOC, to ensure non-discrimination and injustice, was against Article 153 of the Federal Consti-tution.
Nazri said any decision by the commission should not contravene the Constitution. He said if Perkasa was against equal opportunity then it should also condemn the New Econimic Policy, adding that Perkasa was using EOC for political interest and mileage. Nazri also stressed that the Constitution did not state that bumiputera share in the national economy must be at 30%.
Source : www.thestar.com.my
Perkasa: NEM lacks Malay Agenda
PETALING JAYA: Malay rights group Perkasa has hit out at the New Economic Model (NEM) for its lack of Malay agenda and ambiguity of the affirmative action policy. Perkasa president Datuk Ibrahim Ali said providing assistance to the lower 40% of the population with a monthly income of RM1,500 or less per month is regarded as a poverty eradication programme.“Where is the stake for the Malays in the distribution of the country’s economic cake? What’s important is fairness and not equity,” he said in a statement yesterday. “Foreigners who were involved in formulating the NEM will not be bothered about the indigenous people. If strategic areas are developed under the open tender system, the Malays will not be able to compete.
The NEM has given rise to many questions and Perkasa is not happy in the issue of Malay agenda,” he added. Perkasa or Pertubuhan Pribumi Perkasa Malaysia had earlier commended Prime Minister Datuk Seri Najib Tun Razak for guaranteeing that bumiputras including those from Sabah and Sarawak had not been left behind under the NEM.
Source : www.thestar.com.my
There is a need for more liberalisation
THERE is no doubt that the New Economic Model unveiled by Prime Minister Datuk Seri Najib Razak is a bold move by the government to address the sluggish economic growth and to increase foreign direct as well as local investments to propel the country from its middle-income status to a higher-income "new economy". Already part of the model relating to administrative reforms is being implemented in response to the needs of investors which could help certain sectors drive the creation of more high-paying jobs in the near future.
An important thrust that will underpin the model is the emphasis on more equitable opportunities so that each and every Malaysian would be able to realise their maximum potential. Details on this have yet to be unveiled or worked out just as details on how Malaysians are to move away from over-dependence on subsidies. They would, of course, be explained before NEM is implemented under the 10th Malaysia Plan.
The government is understandably cautious on the question of subsidies. While it needs to channel resources towards more productive investment, and therefore improve the country’s economic performance and GDP growth, at the same time it has to be mindful of the needs of the poor.
Those who had thought that the NEM would do away with the affirmative action programmes and institutions of the New Economic Policy completely will find that the many aspects of the policy would continue but in different forms. For instance, under the NEM the government will help all poor Malaysians regardless of race. "Affirmative action will consider all ethnic groups fairly and equally as long as they are in the low income 40% of the households," said Najib.
After more than three decades, the government boldly admitted that "excessive focus on ethnicity-based distribution of resources has contributed to growing separateness and dissension" among Malaysians.
But what is still unclear, and would probably be explained soon, is the fate of the many features of the NEP such as bumiputra quotas, involving university entrance, education scholarships, business licences, investments, government jobs and contracts and how they would figure in the new model. It is unlikely that they will disappear but will probably be handled by the Equal Opportunities Commission to ensure "fairness and address the undue discrimination when occasional abuses by dominant groups are encountered."
It is thus hoped that what has for a long time been taken for granted and abused would be properly managed to ensure that only the most deserving get the proper consideration for assistance. While it is thus understandable that there cannot be a radical departure from the present policy, the NEM must attempt to ensure equality of opportunities for as many Malaysians as possible while at the same time dismantle the many aspects of the policy that impede and discourage investments, be they foreign or local.
Source : www.sun2surf.com
An important thrust that will underpin the model is the emphasis on more equitable opportunities so that each and every Malaysian would be able to realise their maximum potential. Details on this have yet to be unveiled or worked out just as details on how Malaysians are to move away from over-dependence on subsidies. They would, of course, be explained before NEM is implemented under the 10th Malaysia Plan.
The government is understandably cautious on the question of subsidies. While it needs to channel resources towards more productive investment, and therefore improve the country’s economic performance and GDP growth, at the same time it has to be mindful of the needs of the poor.
Those who had thought that the NEM would do away with the affirmative action programmes and institutions of the New Economic Policy completely will find that the many aspects of the policy would continue but in different forms. For instance, under the NEM the government will help all poor Malaysians regardless of race. "Affirmative action will consider all ethnic groups fairly and equally as long as they are in the low income 40% of the households," said Najib.
After more than three decades, the government boldly admitted that "excessive focus on ethnicity-based distribution of resources has contributed to growing separateness and dissension" among Malaysians.
But what is still unclear, and would probably be explained soon, is the fate of the many features of the NEP such as bumiputra quotas, involving university entrance, education scholarships, business licences, investments, government jobs and contracts and how they would figure in the new model. It is unlikely that they will disappear but will probably be handled by the Equal Opportunities Commission to ensure "fairness and address the undue discrimination when occasional abuses by dominant groups are encountered."
It is thus hoped that what has for a long time been taken for granted and abused would be properly managed to ensure that only the most deserving get the proper consideration for assistance. While it is thus understandable that there cannot be a radical departure from the present policy, the NEM must attempt to ensure equality of opportunities for as many Malaysians as possible while at the same time dismantle the many aspects of the policy that impede and discourage investments, be they foreign or local.
Source : www.sun2surf.com
Wednesday, March 31, 2010
New model and Khazanah's GLC
Khazanah Should Undertake Study Before Divesting GLC Stake KUALA LUMPUR, March 31 (Bernama) -- Khazanah Nasional Bhd has been urged to undertake a comprehensive study before divesting its equity stake in government-linked companies (GLCs).
The Malaysian Airline System Employees Union(MASEU) urged Khazanah to not be too eager to do so, to attract more foreign direct investment (FDI) and increasing its cash flow.
"Khazanah has to bear in mind that it is not only an investment arm of the government but also responsible for the security of the nation," said its Executive Secretary, Mustafar Maarof in a statement here Wednesday.
"More research and study has to be undertaken before any decision is made for each company," he added.
Khazanah hold shares in different types of industries and sectors in Malaysia.
Mustafar noted that companies like Pos Malaysia, Tenaga Nasional Bhd, Telekom, Malaysia Airports and Malaysia Airlines, had completely different styles of business, structures and job specifications.
"By making one ruling in divesting the stake in these companies, it would create more confusion among stakeholders, on the way the business management is undertaken," he highlighted.
He also urged Khazanah to start talking to the stakeholders concerned and unions, before reaching any decision in divesting shares.
The Malaysian Airline System Employees Union(MASEU) urged Khazanah to not be too eager to do so, to attract more foreign direct investment (FDI) and increasing its cash flow.
"Khazanah has to bear in mind that it is not only an investment arm of the government but also responsible for the security of the nation," said its Executive Secretary, Mustafar Maarof in a statement here Wednesday.
"More research and study has to be undertaken before any decision is made for each company," he added.
Khazanah hold shares in different types of industries and sectors in Malaysia.
Mustafar noted that companies like Pos Malaysia, Tenaga Nasional Bhd, Telekom, Malaysia Airports and Malaysia Airlines, had completely different styles of business, structures and job specifications.
"By making one ruling in divesting the stake in these companies, it would create more confusion among stakeholders, on the way the business management is undertaken," he highlighted.
He also urged Khazanah to start talking to the stakeholders concerned and unions, before reaching any decision in divesting shares.
Future of Pos Malaysia
March 31, 2010 13:09 PM
Khazanah Hopes To Seal Pos Malaysia Deal By Year-End
KUALA LUMPUR, March 31 (Bernama) -- The government's investment arm, Khazanah Nasional Bhd, hopes to conclude the divestment of a 32.2 percent stake in Pos Malaysia Bhd within this year.
Managing Director, Tan Sri Azman Mokhtar said the company was seeing keen bidders but would not confirm or deny, that DRB-Hicom Bhd and Tune Group were among them.
"Depending on the consultation time with the government, it would take between three to six months to finalise the deal," he told a press conference on the sidelines of Invest Malaysia 2010 here, Wednesday.
Asked if the deal could be concluded within this year, he said:"We hope."
He also said, qualifying bids should be majority controlled by Malaysian parties, with an appropriate consideration and due merit given to the quality of strategic and technical partners, which may include foreign parties.
It was reported that the 32 per cent Pos Malaysia stake is worth about RM390 million.
Pos Malaysia's other government-linked shareholders are the Employees Provident Fund (8.64 per cent), Permodalan Nasional Bhd (6.05 per cent) and Valuecap (1.51 per cent), as at the end of 2008.
Source-- BERNAMA
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