Wednesday, 17 March 2010

Do we still need to depend on the E&E sector for economic growth?

The mainstream papers have all covered the state of the Electrical and Electronics Industry in Malaysia,(see links below), and considering the serious implications of any decisions that have to be made with National interests in mind, I think the Government should, in its new Economic Model to be presented soon, take into account whether FDIs from the Electrical and Electronics Industry is well worth the gains over its negative effects.

Points to Ponder:
  • In the 70's and 80's the overwhelming reasons for the encouragement of FDI from the electronics Industry is that it will spur rapid growth in our nascent economy, and it will in addition provide tremendous employment opportunities for our relatively young nation. I remember, for example, a change of shift workers(operating a 3 shift day) in Motorola required more than 40 factory buses just to transport the ending shift workers out of the factory. Imagine the direct social benefits and its positive spillover effects of such vigorous activities.
  • Oil was not expensive then, and our wages very low, in real terms. There was real benefit to the nation then, and Malaysia provided the Japanese and American companies with a low cost production environment to the burgeoning Electronics Industry worldwide. Hundreds of thousands of Malaysians with little education, but with relatively good English skills found stable employment. And the country benefited tremendously.
  • Fast forward to 2010. The electronics Industry is being subsidised on its fuel costs, while the Govt is deliberating removing fuel subsidy altogether, or just restrict it to citizens
  • Workers at the factories are mainly foreign (Vietnamese?), and for various reasons, the main one, being low wages, local citizens are not available. Can it be that we are losing in terms of skills and language mastery to foreigners to the extent that jobs that have been especially created for locals are now up for grabs by foreigners
  • If this be the case, are there now more Cons than Pros in protecting and encouraging foreign FDIs for the Electronics Industry into our country? Can we absorb any more foreign labour without serious deleterious social effects (housing and environmental degradation, crime, clash of cultures, sharing of limited resources like land, food and potable water, etc). Do the economic gains far outweigh the damage done to our country?

Malaysia risks losing Japanese FDIs

Freeze on Foreign Labour hits Electronics Industry

Japanese firms concerned over subsidy system

I sincerely hope the NEM that will be announced soon will address these issues, not just about protecting Malay rights! We risk being called the 'basket case' of South East Asia

Wednesday, 10 March 2010

FOREIGNERS TAKE OVER KLANG ALLEYS!

There is a feeling of helplessness and despair when I read this feature in StarMetro today,FOREIGNERS TAKE OVER KLANG ALLEYS! and a gnawing fear that our Government (State as well as Federal) have lost its direction in controlling the fast growing influx of foreigners into our country. How are we going to even start to control our own destiny when we cannot even limit the damage done to our country because of unmitigated migration of foreigners into our country: The Klang Municipal Council officials seem to also not know what to do, as foreigners like the Myanmaris, the Nepalese and the Indonesians take over whole alleys for their illicit businesses. Now, parts of Klang have been named after the nations from which they come. I feel it's time the State and Federal Govts stand up to face the problem squarely, and answer the following questions with a view to making some real decisions:
  • Is it the Government's policy to allow foreign workers only working visas, and that these working visas have specific conditions and duration?
  • Have the Government ensured that those with expired visas have left the country? Who does the Monitoring?
  • Are foreigners allowed to conduct retail and other businesses in Malaysia, and if so, why, and are they given business licences?
  • Are locals allowed to rent or lease their premises to foreigners, who have no documentary evidence that they have been allowed to conduct businesses in Malaysia? Especially if those foreigners have overstayed their working visas.
  • If foreigners are NOT ALLOWED TO DO BUSINESS HERE UNDER ANY CIRCUMSTANCES, why are they allowed to take over shops and alleys. These include premises at Petaling Street, the Selayang wholesale market, among many others.
Why keep talking about being a high income nation, when in a few years' time, the number of foreigners will equal the number of Malaysians in its own country? We should be committed to fight to keep our assets to ourselves, protect our shores, and save our diminishing resources like oil and potable water for our citizens. If we look around the Asia Pacific region, including Australia, we see that their Govts take hard and even unpopular steps to ward off blatant and unproductive migration. Only by limiting foreign labour to the minimum can we move towards a high income nation status, not when we have at least 10 million of them to support in 5 years' time. Instead we may soon join the ranks of those "failed nations" around the world..

Think about it

Need to limit foreign labour

Ban Foreign Workers
Stop the Influx of foreigners!

Monday, 8 March 2010

Can Insurance companies abandon their social responsibilities??

I have read this letter with interest, Is this for Public Interest? :-( and feel compelled to add my experience of Insurance companies breaching earlier promises made during the purchase of the policy. My son bought a full life policy from a VERY reputable Insurance company {AIA} (at least that was what it apparently was before the Financial turmoil in 2008), in order that his beneficiaries or dependents may be 'covered' in the event of any calamity befalling him. At the time of the signing of the policy, 1997, he accepted a clause in the Policy that stated that in the 13th year (2010), which is defined as the Critical Year, he can cease payment of his premiums, and he will be covered until the maturity year of the Policy, that is, year 2074. We have since enquired with our Agent, a dear friend, who 'warned' us that, though my son could go ahead with the cessation of the payment of his premium after the 13th or the Critical Year, there is now NO guarantee that he will not be asked again, a few years down the road, to continue with his premium payments or risk losing everything he has previously already paid up. That according to the agent, is because of the returns that the Insurance companies envisaged to be receiving in 1997 has failed miserably to materialize, and rather than do the noble thing and honour the agreements made in the Policy, (like the Malaysian Govt does to its Toll Concession Agreements), the Insurance company has chosen the easier path, and save its own neck by breaking its promise to the Insured.

Why are insurance companies allowed to make excessive profits in good times, providing us with security and social comfort in the process, but then are also allowed to abandon its principles because of losses made through reckless underwriting, driven by massive greed? This is NOT an isolated case, if the authorities care to investigate, we the aggrieved parties would be happy to provide the details.

Sunday, 7 March 2010

What good is our AG and the MACC?

I read the column, Bring in [the team of external] Auditors... with a sense of deep sadness, not because of the usual apparent abuse of power and corruption issues that have been raised, but because of the call by Citizen Nades for a team of External Auditors to look into the Sports Ministry's alleged shenanigans. I have no doubt that many of our citizens have little trust in those august institutions such as the Auditor General and the MACC, but I am sure, if they make up their minds, they are up to it to do a creditable, objective and transparent review of the activities of the sports Ministry, as required by law, without fear or favour. I think, much as we feel they will mess up the job, we should call on them first. Let them show us there are still some honest people in the Government service after all, and let us give them the chance to bring back the public trust, by announcing that investigations will commence forthwith.

Auditor General gets first bite..

Sunday, 28 February 2010

Target importers of hardwood instead

I read your report Unilever blacklists Indonesian Planter that Europe, and the world's top palm oil buyer has blacklisted an oil palm grower for its destructive policies on the Rain forest in increasing its oil palm acreage. While it's highly commendable that such a move be instituted, I feel that such a step in getting the message across has been directed not at the parties mainly responsible for the destruction of our diminishing rainforests. The effort by the Green groups should be directed to the American, European, Japanese and Chinese importers of hardwood for the building of their houses and furniture. Such felling has a Directly disastrous effect on the size of our diminishing forests, while it can be said that replacing trees with oil palms at least maintains the oxygen level of the Earth, I hope

Target Timber companies!
Deforestation: go after the real culprits!

Tuesday, 12 January 2010

Ineffective Govt machinery???

I refer to the letter Bureau urged to do own probe on environmental complaints! in which it was stated that the Public Complaints Bureau's " over-reliance on feedback from government agencies that it is investigating can undermine its ability to resolve recurring problems of over-development in Cameron Highlands..." I feel that the Bureau is trying to do its best in most instances, and in my experience writing to the Bureau, I observe that it has been proactive. However, I do agree with the writer that just writing to the departments concerned regarding the public complaints, and waiting for their replies, is not the best way to deal with most Government departments and authorities. In my experience, most of our letters that are written to the management (email addresses that are listed in the PM's website) have been returned with the message "mailbox full" or "non existing address"! In some cases, replies to our email enquiries are answered by the secretary, or the driver. However, most of the time, it's a great silence. It shows up the general "couldn't care less" attitude of the officials who are in charge of the various departments and functions. To address the problem, and to ensure the efficacy of the PCB, it is suggested that the PCB be required to made mandatory reports to a Sub-Committee in the Parliament, similar to the Public Accounts Committee(PAC) on a regular basis. Such accountability would make its role more effective.

Monday, 11 January 2010

Forest Reserves,,, what are they?

I refer to the letter written by the Malaysian Nature Society, PROTECT THE FORESTS, SCRAP THE KLORR PLAN in which it was stated that "the proposed Kuala Lumpur Outer Ring Road (KLORR) would go from Selayang to Cheras and cut through the Klang Gates Wildlife Reserve and the Ampang and Gombak Forest Reserves.." I would like to ask the Government and the local authorities what is actually meant when a certain tract of land has been designated as a "reserve"? Can it then be arbitrarily decided by later politicians to "re-designate" those lands and use it for whatever purpose they deem suitable for the moment? If I am not wrong, the Klang Gates Reserve is also essential as part of the water catchment area, besides preserving our dwindling wildlife such as the endangered tapirs. It would be interesting to hear from the authorities, if a comprehensive Environmental Impact Study (EIA) has been conducted, and the results published. Please, let us mean what we way, when we announce proudly that Malaysia supports the moves to contain global warming and a greener Earth.

On the same subject, it is heartening to read in your paper that the Selangor state government has aborted the Cementery Project in the form of a promise not to develop the Ayer Hitam Forest Reserve. It is also commendable that the State govt has announced plans to make the area a recreational forest for the enjoyment of its denizens.