Ethnic policy blunts Malaysia
The Kuala Lumpur stock market, the Bursa Malaysia, recently reached its highest peak since early 2000.
That is perhaps unsurprising given that the country's energy and commodity sector is booming and mainstay electronics exports remain strong. Solid reserves, meanwhile, mean that Malaysia is not in danger of repeating the financial meltdown the country experienced in 1998.
But there is always the nagging feeling among investors that Malaysian stocks should be performing much better.
After all, the country boasts a well-balanced economy divided among natural resources (oil and gas, palm oil), manufacturing (electronics) and services (tourism).
So what is holding back the Malaysian equity market?
A lot of investors believe that it is the 35-year-old affirmative action programme for ethnic Malays, the country's largest racial group.
The policy to promote Malay interests was meant to compensate for the strong economic power wielded by the country's ethnic Chinese minority.
Malay resentment of Chinese business dominance led to race riots in 1969and the subsequent introduction of what was called the New Economic Policy (NEP).
Malays were given preference for university slots and state jobs, while Malays were required to own at least 30 per cent of any local business.
Although the policy has succeeded in narrowingthe ethnic divide, it has also fostered a culture of patronage that hasled to economic inefficiencies.
The effects are most evident in the state-owned companies that make up a third of the capitalisation of Bursa Malaysia.
When Abduallah Badawi become prime ministerin 2003, he vowed to reform the state corporate sector. But progress has been slow. One reason is that state companies are heavy employers of Malays, which makes job cuts politically difficult.
Struggling national carmaker Proton is a significant source of business for Malay-owned parts suppliers, who have lobbied against Proton being sold to a foreign competitor.
A debate over the affirmative action policy has flared up in the past few weeks with the release of a report by a respected local think-tank, the Asian Strategy and Leadership Institute (Asli), which claimed that Malays owned 45 per cent of corporate equity rather than the19 per cent claimed by the government.
The report called into question the continuation of the NEP, which has been based on the premise that it should remain in force until Malays owned at least30 per cent of corporate equity.
The Asli looked at shareholdings among listed companies rather than basing its estimate on registered companies as the government does to reach its conclusion.
The findings set off a political firestorm with the Asli forced to retract the report, cutting short what promised to be an overdue examination of the affirmative action policy.
The backlash underscored that the NEP is the "third rail" of Malaysian politics and unlikely to bescrapped.
Both Mr Abdullah and his predecessor, Mahathir Mohamad, have previously questioned some of the policy's tenets and tried to tinker with it.
But the two men are now engaged in a bitter political feud, which will only strengthen the hand of Malay hardliners who want to keep the policy unchanged.
The retention of the NEP threatens to undermine Malaysia's economic competitiveness.
One casualty could be the proposed bilateral trade agreement between Malaysia and the US because Washington is pushing for a relaxation of affirmative action requirements on public procurement.
Another warning signwas the release this weekof the annual report on global investment bythe United Nations Conference on Trade and Development.
It revealed that foreign direct investment in Malaysia fell by 14 per cent last year to $4bn (€3.2bn).
Its findings came as a surprise since Malaysia offers plenty of cheap land, a weak currency, an educated workforce and good infrastructure that normally would attract foreign investors.
Moreover, foreign manufacturers are exempt from NEP requirements.
But the increasingly polarised political climate fostered by the NEP is not conducive to correcting some of the economic problems created by it.
No wonder many foreign equity and manufacturing investors are giving Malaysia a pass.
(By John Burton - FT.com )
Malaysia's pursuit of economic reform to be tested
The proposed sale of stakes in Malaysia's national carmaker and a local bank to foreign investors may test the prime minister's ability to push ahead with economic reform in the face of resistance from the ethnic Malay majority.
Abdullah Badawi heard strong demands last week to preserve the affirmative action policies for Malays during the annual meeting of the United Malays National Organisation, the ruling party.
Malays have long complained that in comparison with ethnic Chinese, they control a disproportionately small share of the country's economy. Some put Malays' share of corporate assets at 20 per cent, even though the group constitutes 60 per cent of the population.
Critics, however, say the affirmative action policies have hampered Malaysia's international competitiveness, with foreign direct investment falling 14 per cent last year to $4bn (EU3.1bn, £2.1bn).
Abdullah's economic reforms could hurt Malay interests, such as an overhaul of the inefficient state industrial sector that is a big employer of ethnic Malay workers and subcontractors.
His reforms appeared under threat after Mahathir Mohamad, his predecessor, criticised publicly the change in direction. Analysts had warned that Dr Mahathir could undermine Mr Abdullah's support in Umno severely.
However, the prime minister seemed to have weathered the storm when delegates at the party conference expressed support for him.
Mr Abdullah has suggested the government will proceed with plans to sell at least a minority stake in Proton, the carmaker, to a foreign investor, possibly Volkswagen. Proton is a main source of business for local car parts suppliers, many of which are Malay-owned. They have opposed a foreign takeover of Proton in the belief that a new owner might shift orders overseas. The issue of Proton's future ownership helped prompt Dr Mahathir to speak out against his successor.
The proposed sale of a stake in AmBank, Malaysia's fifth largest, to TPG Newbridge, the US equity fund, or to Australia & New Zealand Banking Group would also be seen as a relaxation of the government's tight control over the financial sector, which is still subject to foreign ownership limits. Most of the banking industry is now controlled by ethnic Malay interests.
The successful conclusion of the deals would revive hopes that Malaysia might catch up with regional rivals in attracting foreign investment, which has been almost stagnant since the Asian financial crisis in 1998.
In a recent report, Citigroup said: "Malaysia today is a pale shadow of itself compared to 10 years ago. It is not that Malaysia is moving backward but simply that is not moving forward quickly enough."
Foreign investors have complained about ownership limits, red tape, a lack of transparency in government decisions, market distortions caused by the affirmative action policies and a shortage of skilled manufacturing workers.
A perception of rising ethnic tensions also worries some investors.
The fiery rhetoric defending Malay rights at the Umno meeting shows Mr Abdullah still faces an uphill struggle in making significant changes. Umno delegates warned that any debate on the affirmative action policies would hurt race relations. Rafidah Aziz, the trade minister, said: "The constitution has enshrined the position and rights of the Malays. There's no need to debate about it."
The affirmative action policies were introduced in 1970 to narrow the wealth gap between Malays and Chinese in response to race riots the year before. Malays are given preference for government jobs and state contracts and are required to own at least 30 per cent of businesses in many sectors.
Although the policy has succeeded in reducing poverty among Malays, there is a growing debate on its continued effectiveness.
A Hong Kong-based economic consultant said: "Affirmative action has apparently failed to produce a large enough cohort of educated and skilled Malays who can compete on a global stage."
Analysts believe that Mr Abdullah will have to play a delicate balancing act in terms of economic reforms, making some changes while continuing to give concessions to Malays.
( By John Burton in Singapore - FT Com)
'Kiasu' Is Key To Success Of The Malays said Ungku Aziz, Royal Professor Ungku Aziz, in a think-out-of-the box approach to tackle the Malay dilemma, wants Bumiputeras to have the 'kiasu' drive to succeed.(Bernama)
"I think many of the rural people are complex, too shy, too kind to have this kiasu drive. This is one of the important things to be a good Bumiputera entrepreneur," said Ungku Aziz, a leading academician and economist who has devoted his entire life to rural poverty mitigation.
"Because kiasu people say 'I want to be the best', 'I want to be number one'. Or as the PM (Datuk Seri Abdullah Ahmad Badawi) says the towering (Malays). But not everybody can be at the tower, but everybody can be a little kiasu.
"Kiasu is a Hokkien word which is popular in Singapore. But I think it's time for us to say that our rural people should also be a little more kiasu or a little more aggressive, " said the longest serving vice-chancellor of Malaysia's premier and oldest university, Universiti Malaya. He held the position for almost 20 years
He said Bumiputera entrepreneurs should learn thinking skill which was not taught as a subject in school, to understand about risk management and basic accounting.
He said good entrepreneurs should be sadiq (truthful), amanah (trustworthy) and telus (transparent).
"Sadiq means say the truth, say things like they are, say as it is.
"You must be amanah, that means you must be trustworthy, if you promise to do, you must do. Otherwise, you don't make promises.
"You must also be telus. All the under-the-counter deals are not good for rural development. I am saying here that all the people involved in rural development should be telus, which means they are open, there are no sidings and there are no partial compromises."
Prof Ungku Aziz said rural entrepreneurs should also have the 4's -- Sopan (courteous), Santun (polite) and Selalu (always) Senyum (smile), he said.
"With the 4's, you will be a good businessman and entrepreneur," he added.
He said there should be 'Bumi boomer' in the rural areas, like the baby boom phenomenon that took place after soldiers returned home from the World War.
"They (Bumiputeras) must boom and expand in large numbers if they are going to be effective in rural development programmes."
He said the boom, including among the women, could help break the monopoly and monopsony powers of traders (M-M system), one of the root causes of rural poverty.
He stressed the need for a generation change where young entrepreneurs should find opportunities for better employment and accumulation of wealth in the rural sector.
"This may reduce huge unemployment, especially among the graduates. It should be an opening up of huge synergy in the upstream and downstream development.
"Besides the need for more education at all levels in all types, there should also be the aim of transforming white-collar people into workers in jeans and straw hats."
He said low productivity was the key problem of rural human resources.
"There is a need for attention in the implementation of human resources in favour of rural people. One glaring economic deliberate choice will be the reduction of large infrastructure projects especially prestige projects, showpiece buildings and even bridges," he said.
He attributed rural poverty to, among others, the selfish mismanagement and wanton destruction including of pristine tropical forests and rich ecology as well as colonial imperialism which destroyed the traditional social system, and destabilised political organisations and cultural links of the people.
There was, therefore, a need for land reforms to protect the rural farmers as land usage was still guided by laws made in the early days of imperialism, he said.
Malaysia Boleh !! Malaysian are only too clever at shifting blame from their own shoulders to those of others. Kiasu ?? Making a farce of this is Malaysian culture ??
We don’t own the cargo complex, says MAS, they were merely the “zone authority” for the complex. (The Star)
“We don’t own Kompleks Kargo Udara Kedua. Our task there is gatekeeping, ensuing the goods passing the zone have all the right documentation and those who work there are authorised personnel.” said MASKargo senior general manager Datuk Ong Jyh Jong.
You store your goods at your own risk ? read an interesting report in the NST " Forwarders and MAS in angry face-off over heist ", The blame game has started.
The Airfreight Forwarders Association of Malaysia (AFAM) is taking Malaysia Airlines to task for their lack of security measures at the cargo complex.
The national carrier, however, is claiming they cannot be held responsible as the complex does not belong to them and that they are only in charge of security at the entrance and exit points.
WHO IS IN CHARGE OF SECURITY AT THE COMPLEX ?
MAS senior general manager (cargo) Datuk Ong Jyh Jong pointed out that the heist had not taken place at the MASkargo Complex in Penang, but rather at the Second Air Cargo Complex (SACC) in Batu Maung.
"We are merely the zone authority at the SACC and the premises do not belong to us. We only play the role of gatekeeper at this complex," he said.
"Our responsibility is to monitor incoming and outgoing goods. We ensure the documents are in order and the goods match the items on the manifests.
"We also monitor people who go in and out of the SACC, ensuring they have the proper security clearances," Ong said.
AFAM chairman Walter Culas said the Ministry of Finance had appointed MAS as the Free Commercial Zone (FCZ) authority at the Penang airport in 1996.
"Therefore, MAS should be responsible for all entries into the zone.
"How can MAS say that they will leave it to the authorities to decide who is responsible for the robbery? Under the Free Zones Act 1990, MAS is responsible for everything that goes in and out of the free zone area.
"The issue is the main guard house at the entrance as the robbers were allowed to drive straight in without security checks."
He accused MAS of trying to wash their hands off the robbery when it was allegedly negligence on their part which contributed to the heist.
"Nothing was done, the identity cards of the two truck drivers were not even checked by the security guards when the robbers drove in," Culas claimed.
Culas said that he would be urging the freight forwarders affected by the heist to file a negligence claim against MAS.
"They should be held accountable for what happened at the entrance because there is only one entry and exit point at the SACC," Culas said.
THE ISSUE OF IMPLEMENTING THE ELECTRONIC CARGO PROCESSING SYSTEM
Ong said that MAS had tried to have an electronic system installed but this move was contested by AFAM in court. MAS had wanted to charge RM5 for each cargo processing fee. AFAM rejected it.
Ong said the implementation of the proposed system would have enabled the tracking of cargo, especially valuable goods.
Culas replied that the subject of the electronic system was totally irrelevant to the heist and it had been resolved between the Ministry of Finance (MoF) and the freight forwarding community.
Ong said that electronic clearance had a direct impact on security, replying to the above statement by Culas.
"The subject matter is closed until further notice and the AFAM would like to categorically mention the issue of tracking cargo has nothing to do with the latest robbery at Batu Maung."
Over the past years, AFAM had highlighted the urgent need to have better security facilities such as CCTVs, tighter security procedures for movement into cargo facilities, an alarm system and the installation of a direct hotline to the nearest police station. All these were ignored.
ON THE WARNING FROM AFAM ON THE BIG ROBBERY
Ong confirmed that MAS head of security Jeff Nor Jetty had received the warning from AFAM but said there was nothing specific which made it difficult for them to take effective action.
Culas said AFAM took their own initiative to tighten security measures at the MASkargo Complex in KLIA after they received the anonymous tip-off.
"Every individual entering and leaving the complex was subjected to strict identity checks to ensure only authorised personnel are allowed entry."
Prime movers (trucks responsible for hauling containers) must have a letter which has been endorsed by the zone authority before it can enter the premises.
Security personnel at other check points were reminded to check passes, even though the pass has already been checked once at the entry point.
Ong later said an ‘operations order’ had been issued to security personnel to be more vigilant.
AFAM’S CLAIMS THAT ANYONE CAN GO INTO THE COMPLEX WITH A WAVE OF A HAND
Ong said that such a statement was uncalled for as MAS had stringent security measures at the Kuala Lumpur International Airport Cargo Complex.
He used reporters as an example saying that he had received complaints about how long it took for a person to get through numerous security clearances before they could finally meet him at the MAS Complex.
Culas said he would stand by the claim as he was speaking from experience and had personally gone to the MASkargo Centre in Bayan Lepas, Penang and been allowed entry after waving his hand at the security guards.
"Ask any freight forwarder in Penang and they will verify my claim. It is a fact of life and the same thing was going on at KLIA until last year following the RM4 million LCD heist in October.
"The current stringent security measures were only implemented after last year’s heist," he said.
Ong later replied that MAS begged to differ on this claim saying it was not so casual. The guards were trained security personnel.
After 25 years of hostility, Iraq and Syria restore relations
Iraq and Syria agreed to restore full diplomatic relations today after a break of nearly a quarter of a century, a move Iraq hopes may help stem what it says is Syrian support for militants.
Syrian Foreign Minister Walid al-Moualem, making the first visit by a Syrian minister to Iraq since the U.S.-led invasion in 2003, signed an accord with Iraqi counterpart Hoshiyar Zebari in which they agreed U.S. troops should stay in Iraq for now.
Moualem had earlier called for the setting of a timetable for the withdrawal of 140,000 U.S. troops. The document contained wording used by the Iraqi and U.S. governments, saying troops should gradually withdraw once they were not needed.
Amid calls for President George W. Bush to open talks with U.S. adversaries Syria and Iran to help stabilise Iraq, Iraqi President Jalal Talabani is also flying to Tehran on Saturday. Washington and Iraqi leaders accuse Iran of backing Shi'ite militia groups and Syria of helping Sunni insurgents.
How far either foreign government can limit mounting sectarian violence in Iraq is unclear, as hundreds of deaths a week fuel fear and hatred at the heart of Iraqi society.
A U.S. air strike on the Baghdad Shi'ite militia stronghold of Sadr City early today killed three people, including a baby, police and health officials said, sparking public anger.
The U.S. military said the strike came after U.S. and Iraqi troops were fired on with rockets and machineguns during a raid in which they captured seven people, including a man they said led a group linked to the kidnap of an Iraqi-born U.S. soldier.
Diplomatic ties
Syria and Iraq agreed to restore full diplomatic ties, reopening their embassies in Damascus and Baghdad. An agreement in principle was struck some months ago. Ambassadors with full rank would be named and flags raised over embassies shortly.
Saddam Hussein and Syria's late President Hafez al-Assad, leaders of rival wings of the Arab nationalist Baath party, severed ties when Syria sided with Shi'ite, non-Arab Iran during the 1980-1988 Iran-Iraq war.
U.S. and Iraqi officials have long accused Damascus of doing too little to stem the flow of foreign Islamist fighters and weapons across its long, porous border. Syria says sealing the border is impossible and Iraq must do more to patrol its side.
The U.S. military said on Monday that between 70 and 100 foreign fighters were still crossing the border each month.
After meeting officials, including Shi'ite Prime Minister Nuri al-Maliki, who has used harsh language about Syria's alleged role in the insurgency, Moualem pledged cooperation in tackling violence that has raised the spectre of civil war.
Syria was prepared to work "hand in hand to achieve the security of brother Iraq".
After the strike in Sadr City, Iraqi Health Ministry official Qassem Abdul Hadi said the dead included a six-month- old boy and that up to 50 people had been wounded. Other officials put the number of wounded at 15.
Iraqi police said U.S. and Iraqi forces raided the slum suburb of over 2 million at 5 a.m. (0200 GMT) and called in the air strike after clashing with militiamen loyal to Shi'ite cleric Moqtada al-Sadr. They said five people were killed.
Recent raids by U.S. forces in the area have sparked tensions with Maliki's coalition government.
The dead child, a baby boy, had a gaping skull wound. His uncle, Abu Ahmed, cradled him in his arms, the lifeless body was wrapped in white cloth: "Where is this loser government. What is the fault of this child? Is he also militia? Does God, Islam accept this?" Abu Ahmed asked angrily.
A woman wailed "My father, my father", while other residents gathered round a burned-out house from which smoke poured.
(Source : Daily Mail UK )
Malaysia Abdullah Ahmad Badawi Tun Mahathir UMNO: Asia Iraq Syria
That is perhaps unsurprising given that the country's energy and commodity sector is booming and mainstay electronics exports remain strong. Solid reserves, meanwhile, mean that Malaysia is not in danger of repeating the financial meltdown the country experienced in 1998.
But there is always the nagging feeling among investors that Malaysian stocks should be performing much better.
After all, the country boasts a well-balanced economy divided among natural resources (oil and gas, palm oil), manufacturing (electronics) and services (tourism).
So what is holding back the Malaysian equity market?
A lot of investors believe that it is the 35-year-old affirmative action programme for ethnic Malays, the country's largest racial group.
The policy to promote Malay interests was meant to compensate for the strong economic power wielded by the country's ethnic Chinese minority.
Malay resentment of Chinese business dominance led to race riots in 1969and the subsequent introduction of what was called the New Economic Policy (NEP).
Malays were given preference for university slots and state jobs, while Malays were required to own at least 30 per cent of any local business.
Although the policy has succeeded in narrowingthe ethnic divide, it has also fostered a culture of patronage that hasled to economic inefficiencies.
The effects are most evident in the state-owned companies that make up a third of the capitalisation of Bursa Malaysia.
When Abduallah Badawi become prime ministerin 2003, he vowed to reform the state corporate sector. But progress has been slow. One reason is that state companies are heavy employers of Malays, which makes job cuts politically difficult.
Struggling national carmaker Proton is a significant source of business for Malay-owned parts suppliers, who have lobbied against Proton being sold to a foreign competitor.
A debate over the affirmative action policy has flared up in the past few weeks with the release of a report by a respected local think-tank, the Asian Strategy and Leadership Institute (Asli), which claimed that Malays owned 45 per cent of corporate equity rather than the19 per cent claimed by the government.
The report called into question the continuation of the NEP, which has been based on the premise that it should remain in force until Malays owned at least30 per cent of corporate equity.
The Asli looked at shareholdings among listed companies rather than basing its estimate on registered companies as the government does to reach its conclusion.
The findings set off a political firestorm with the Asli forced to retract the report, cutting short what promised to be an overdue examination of the affirmative action policy.
The backlash underscored that the NEP is the "third rail" of Malaysian politics and unlikely to bescrapped.
Both Mr Abdullah and his predecessor, Mahathir Mohamad, have previously questioned some of the policy's tenets and tried to tinker with it.
But the two men are now engaged in a bitter political feud, which will only strengthen the hand of Malay hardliners who want to keep the policy unchanged.
The retention of the NEP threatens to undermine Malaysia's economic competitiveness.
One casualty could be the proposed bilateral trade agreement between Malaysia and the US because Washington is pushing for a relaxation of affirmative action requirements on public procurement.
Another warning signwas the release this weekof the annual report on global investment bythe United Nations Conference on Trade and Development.
It revealed that foreign direct investment in Malaysia fell by 14 per cent last year to $4bn (€3.2bn).
Its findings came as a surprise since Malaysia offers plenty of cheap land, a weak currency, an educated workforce and good infrastructure that normally would attract foreign investors.
Moreover, foreign manufacturers are exempt from NEP requirements.
But the increasingly polarised political climate fostered by the NEP is not conducive to correcting some of the economic problems created by it.
No wonder many foreign equity and manufacturing investors are giving Malaysia a pass.
(By John Burton - FT.com )
Malaysia's pursuit of economic reform to be tested
The proposed sale of stakes in Malaysia's national carmaker and a local bank to foreign investors may test the prime minister's ability to push ahead with economic reform in the face of resistance from the ethnic Malay majority.
Abdullah Badawi heard strong demands last week to preserve the affirmative action policies for Malays during the annual meeting of the United Malays National Organisation, the ruling party.
Malays have long complained that in comparison with ethnic Chinese, they control a disproportionately small share of the country's economy. Some put Malays' share of corporate assets at 20 per cent, even though the group constitutes 60 per cent of the population.
Critics, however, say the affirmative action policies have hampered Malaysia's international competitiveness, with foreign direct investment falling 14 per cent last year to $4bn (EU3.1bn, £2.1bn).
Abdullah's economic reforms could hurt Malay interests, such as an overhaul of the inefficient state industrial sector that is a big employer of ethnic Malay workers and subcontractors.
His reforms appeared under threat after Mahathir Mohamad, his predecessor, criticised publicly the change in direction. Analysts had warned that Dr Mahathir could undermine Mr Abdullah's support in Umno severely.
However, the prime minister seemed to have weathered the storm when delegates at the party conference expressed support for him.
Mr Abdullah has suggested the government will proceed with plans to sell at least a minority stake in Proton, the carmaker, to a foreign investor, possibly Volkswagen. Proton is a main source of business for local car parts suppliers, many of which are Malay-owned. They have opposed a foreign takeover of Proton in the belief that a new owner might shift orders overseas. The issue of Proton's future ownership helped prompt Dr Mahathir to speak out against his successor.
The proposed sale of a stake in AmBank, Malaysia's fifth largest, to TPG Newbridge, the US equity fund, or to Australia & New Zealand Banking Group would also be seen as a relaxation of the government's tight control over the financial sector, which is still subject to foreign ownership limits. Most of the banking industry is now controlled by ethnic Malay interests.
The successful conclusion of the deals would revive hopes that Malaysia might catch up with regional rivals in attracting foreign investment, which has been almost stagnant since the Asian financial crisis in 1998.
In a recent report, Citigroup said: "Malaysia today is a pale shadow of itself compared to 10 years ago. It is not that Malaysia is moving backward but simply that is not moving forward quickly enough."
Foreign investors have complained about ownership limits, red tape, a lack of transparency in government decisions, market distortions caused by the affirmative action policies and a shortage of skilled manufacturing workers.
A perception of rising ethnic tensions also worries some investors.
The fiery rhetoric defending Malay rights at the Umno meeting shows Mr Abdullah still faces an uphill struggle in making significant changes. Umno delegates warned that any debate on the affirmative action policies would hurt race relations. Rafidah Aziz, the trade minister, said: "The constitution has enshrined the position and rights of the Malays. There's no need to debate about it."
The affirmative action policies were introduced in 1970 to narrow the wealth gap between Malays and Chinese in response to race riots the year before. Malays are given preference for government jobs and state contracts and are required to own at least 30 per cent of businesses in many sectors.
Although the policy has succeeded in reducing poverty among Malays, there is a growing debate on its continued effectiveness.
A Hong Kong-based economic consultant said: "Affirmative action has apparently failed to produce a large enough cohort of educated and skilled Malays who can compete on a global stage."
Analysts believe that Mr Abdullah will have to play a delicate balancing act in terms of economic reforms, making some changes while continuing to give concessions to Malays.
( By John Burton in Singapore - FT Com)
**********
'Kiasu' Is Key To Success Of The Malays said Ungku Aziz, Royal Professor Ungku Aziz, in a think-out-of-the box approach to tackle the Malay dilemma, wants Bumiputeras to have the 'kiasu' drive to succeed.(Bernama)
"I think many of the rural people are complex, too shy, too kind to have this kiasu drive. This is one of the important things to be a good Bumiputera entrepreneur," said Ungku Aziz, a leading academician and economist who has devoted his entire life to rural poverty mitigation.
"Because kiasu people say 'I want to be the best', 'I want to be number one'. Or as the PM (Datuk Seri Abdullah Ahmad Badawi) says the towering (Malays). But not everybody can be at the tower, but everybody can be a little kiasu.
"Kiasu is a Hokkien word which is popular in Singapore. But I think it's time for us to say that our rural people should also be a little more kiasu or a little more aggressive, " said the longest serving vice-chancellor of Malaysia's premier and oldest university, Universiti Malaya. He held the position for almost 20 years
He said Bumiputera entrepreneurs should learn thinking skill which was not taught as a subject in school, to understand about risk management and basic accounting.
He said good entrepreneurs should be sadiq (truthful), amanah (trustworthy) and telus (transparent).
"Sadiq means say the truth, say things like they are, say as it is.
"You must be amanah, that means you must be trustworthy, if you promise to do, you must do. Otherwise, you don't make promises.
"You must also be telus. All the under-the-counter deals are not good for rural development. I am saying here that all the people involved in rural development should be telus, which means they are open, there are no sidings and there are no partial compromises."
Prof Ungku Aziz said rural entrepreneurs should also have the 4's -- Sopan (courteous), Santun (polite) and Selalu (always) Senyum (smile), he said.
"With the 4's, you will be a good businessman and entrepreneur," he added.
He said there should be 'Bumi boomer' in the rural areas, like the baby boom phenomenon that took place after soldiers returned home from the World War.
"They (Bumiputeras) must boom and expand in large numbers if they are going to be effective in rural development programmes."
He said the boom, including among the women, could help break the monopoly and monopsony powers of traders (M-M system), one of the root causes of rural poverty.
He stressed the need for a generation change where young entrepreneurs should find opportunities for better employment and accumulation of wealth in the rural sector.
"This may reduce huge unemployment, especially among the graduates. It should be an opening up of huge synergy in the upstream and downstream development.
"Besides the need for more education at all levels in all types, there should also be the aim of transforming white-collar people into workers in jeans and straw hats."
He said low productivity was the key problem of rural human resources.
"There is a need for attention in the implementation of human resources in favour of rural people. One glaring economic deliberate choice will be the reduction of large infrastructure projects especially prestige projects, showpiece buildings and even bridges," he said.
He attributed rural poverty to, among others, the selfish mismanagement and wanton destruction including of pristine tropical forests and rich ecology as well as colonial imperialism which destroyed the traditional social system, and destabilised political organisations and cultural links of the people.
There was, therefore, a need for land reforms to protect the rural farmers as land usage was still guided by laws made in the early days of imperialism, he said.
Malaysia Boleh !! Malaysian are only too clever at shifting blame from their own shoulders to those of others. Kiasu ?? Making a farce of this is Malaysian culture ??
We don’t own the cargo complex, says MAS, they were merely the “zone authority” for the complex. (The Star)
“We don’t own Kompleks Kargo Udara Kedua. Our task there is gatekeeping, ensuing the goods passing the zone have all the right documentation and those who work there are authorised personnel.” said MASKargo senior general manager Datuk Ong Jyh Jong.
You store your goods at your own risk ? read an interesting report in the NST " Forwarders and MAS in angry face-off over heist ", The blame game has started.
The Airfreight Forwarders Association of Malaysia (AFAM) is taking Malaysia Airlines to task for their lack of security measures at the cargo complex.
The national carrier, however, is claiming they cannot be held responsible as the complex does not belong to them and that they are only in charge of security at the entrance and exit points.
WHO IS IN CHARGE OF SECURITY AT THE COMPLEX ?
MAS senior general manager (cargo) Datuk Ong Jyh Jong pointed out that the heist had not taken place at the MASkargo Complex in Penang, but rather at the Second Air Cargo Complex (SACC) in Batu Maung.
"We are merely the zone authority at the SACC and the premises do not belong to us. We only play the role of gatekeeper at this complex," he said.
"Our responsibility is to monitor incoming and outgoing goods. We ensure the documents are in order and the goods match the items on the manifests.
"We also monitor people who go in and out of the SACC, ensuring they have the proper security clearances," Ong said.
AFAM chairman Walter Culas said the Ministry of Finance had appointed MAS as the Free Commercial Zone (FCZ) authority at the Penang airport in 1996.
"Therefore, MAS should be responsible for all entries into the zone.
"How can MAS say that they will leave it to the authorities to decide who is responsible for the robbery? Under the Free Zones Act 1990, MAS is responsible for everything that goes in and out of the free zone area.
"The issue is the main guard house at the entrance as the robbers were allowed to drive straight in without security checks."
He accused MAS of trying to wash their hands off the robbery when it was allegedly negligence on their part which contributed to the heist.
"Nothing was done, the identity cards of the two truck drivers were not even checked by the security guards when the robbers drove in," Culas claimed.
Culas said that he would be urging the freight forwarders affected by the heist to file a negligence claim against MAS.
"They should be held accountable for what happened at the entrance because there is only one entry and exit point at the SACC," Culas said.
THE ISSUE OF IMPLEMENTING THE ELECTRONIC CARGO PROCESSING SYSTEM
Ong said that MAS had tried to have an electronic system installed but this move was contested by AFAM in court. MAS had wanted to charge RM5 for each cargo processing fee. AFAM rejected it.
Ong said the implementation of the proposed system would have enabled the tracking of cargo, especially valuable goods.
Culas replied that the subject of the electronic system was totally irrelevant to the heist and it had been resolved between the Ministry of Finance (MoF) and the freight forwarding community.
Ong said that electronic clearance had a direct impact on security, replying to the above statement by Culas.
"The subject matter is closed until further notice and the AFAM would like to categorically mention the issue of tracking cargo has nothing to do with the latest robbery at Batu Maung."
Over the past years, AFAM had highlighted the urgent need to have better security facilities such as CCTVs, tighter security procedures for movement into cargo facilities, an alarm system and the installation of a direct hotline to the nearest police station. All these were ignored.
ON THE WARNING FROM AFAM ON THE BIG ROBBERY
Ong confirmed that MAS head of security Jeff Nor Jetty had received the warning from AFAM but said there was nothing specific which made it difficult for them to take effective action.
Culas said AFAM took their own initiative to tighten security measures at the MASkargo Complex in KLIA after they received the anonymous tip-off.
"Every individual entering and leaving the complex was subjected to strict identity checks to ensure only authorised personnel are allowed entry."
Prime movers (trucks responsible for hauling containers) must have a letter which has been endorsed by the zone authority before it can enter the premises.
Security personnel at other check points were reminded to check passes, even though the pass has already been checked once at the entry point.
Ong later said an ‘operations order’ had been issued to security personnel to be more vigilant.
AFAM’S CLAIMS THAT ANYONE CAN GO INTO THE COMPLEX WITH A WAVE OF A HAND
Ong said that such a statement was uncalled for as MAS had stringent security measures at the Kuala Lumpur International Airport Cargo Complex.
He used reporters as an example saying that he had received complaints about how long it took for a person to get through numerous security clearances before they could finally meet him at the MAS Complex.
Culas said he would stand by the claim as he was speaking from experience and had personally gone to the MASkargo Centre in Bayan Lepas, Penang and been allowed entry after waving his hand at the security guards.
"Ask any freight forwarder in Penang and they will verify my claim. It is a fact of life and the same thing was going on at KLIA until last year following the RM4 million LCD heist in October.
"The current stringent security measures were only implemented after last year’s heist," he said.
Ong later replied that MAS begged to differ on this claim saying it was not so casual. The guards were trained security personnel.
**********
After 25 years of hostility, Iraq and Syria restore relations
Iraq and Syria agreed to restore full diplomatic relations today after a break of nearly a quarter of a century, a move Iraq hopes may help stem what it says is Syrian support for militants.
Syrian Foreign Minister Walid al-Moualem, making the first visit by a Syrian minister to Iraq since the U.S.-led invasion in 2003, signed an accord with Iraqi counterpart Hoshiyar Zebari in which they agreed U.S. troops should stay in Iraq for now.
Moualem had earlier called for the setting of a timetable for the withdrawal of 140,000 U.S. troops. The document contained wording used by the Iraqi and U.S. governments, saying troops should gradually withdraw once they were not needed.
Amid calls for President George W. Bush to open talks with U.S. adversaries Syria and Iran to help stabilise Iraq, Iraqi President Jalal Talabani is also flying to Tehran on Saturday. Washington and Iraqi leaders accuse Iran of backing Shi'ite militia groups and Syria of helping Sunni insurgents.
How far either foreign government can limit mounting sectarian violence in Iraq is unclear, as hundreds of deaths a week fuel fear and hatred at the heart of Iraqi society.
A U.S. air strike on the Baghdad Shi'ite militia stronghold of Sadr City early today killed three people, including a baby, police and health officials said, sparking public anger.
The U.S. military said the strike came after U.S. and Iraqi troops were fired on with rockets and machineguns during a raid in which they captured seven people, including a man they said led a group linked to the kidnap of an Iraqi-born U.S. soldier.
Diplomatic ties
Syria and Iraq agreed to restore full diplomatic ties, reopening their embassies in Damascus and Baghdad. An agreement in principle was struck some months ago. Ambassadors with full rank would be named and flags raised over embassies shortly.
Saddam Hussein and Syria's late President Hafez al-Assad, leaders of rival wings of the Arab nationalist Baath party, severed ties when Syria sided with Shi'ite, non-Arab Iran during the 1980-1988 Iran-Iraq war.
U.S. and Iraqi officials have long accused Damascus of doing too little to stem the flow of foreign Islamist fighters and weapons across its long, porous border. Syria says sealing the border is impossible and Iraq must do more to patrol its side.
The U.S. military said on Monday that between 70 and 100 foreign fighters were still crossing the border each month.
After meeting officials, including Shi'ite Prime Minister Nuri al-Maliki, who has used harsh language about Syria's alleged role in the insurgency, Moualem pledged cooperation in tackling violence that has raised the spectre of civil war.
Syria was prepared to work "hand in hand to achieve the security of brother Iraq".
After the strike in Sadr City, Iraqi Health Ministry official Qassem Abdul Hadi said the dead included a six-month- old boy and that up to 50 people had been wounded. Other officials put the number of wounded at 15.
Iraqi police said U.S. and Iraqi forces raided the slum suburb of over 2 million at 5 a.m. (0200 GMT) and called in the air strike after clashing with militiamen loyal to Shi'ite cleric Moqtada al-Sadr. They said five people were killed.
Recent raids by U.S. forces in the area have sparked tensions with Maliki's coalition government.
The dead child, a baby boy, had a gaping skull wound. His uncle, Abu Ahmed, cradled him in his arms, the lifeless body was wrapped in white cloth: "Where is this loser government. What is the fault of this child? Is he also militia? Does God, Islam accept this?" Abu Ahmed asked angrily.
A woman wailed "My father, my father", while other residents gathered round a burned-out house from which smoke poured.
(Source : Daily Mail UK )
Malaysia Abdullah Ahmad Badawi Tun Mahathir UMNO: Asia Iraq Syria
posted by Ah Yun Wong at
6:25 PM
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