Forex losses by Bank Negara Malaysia, Facts were concealed; Mahathir, Anwar and Nor Mohamed implicated: RCI


Important report: RCI Secretary Datuk Dr Yusof
Ismail speaking to media after submitting a police report over Bank
Negara forex trade losses in Putrajaya.

THE Royal Commission of Inquiry into the foreign exchange losses suffered by Bank Negara Malaysia (BNM) back in 1990s has recommended that three people be probed over their involvement and liability.

They are former prime minister Tun Dr Mahathir Mohamad, his then finance minister Datuk Seri Anwar Ibrahim and ex-Bank Negara advisor Tan Sri Nor Mohamed Yakcop, whom the report also named as “principally liable for criminal breach of trust”.

The 524-page report also called out Tun Daim Zainuddin, who served as finance minister from July 14, 1984 to March 15, 1991, for having aided and abetted Nor Mohamed by leaving BNM “to its own devices”.

The commission found that the Cabinet in the 1990s was not given the full picture by Anwar on the forex losses, adding that he had “deliberately concealed facts and information and made misleading statements”.

“The Commission is of the opinion that there was deliberate concealment as BNM’s annual reports did not state the actual losses incurred from the forex dealings from 1992 to 1994.

“It is also of the opinion that the then prime minister (Dr Mahathir) had condoned the actions of the finance minister,” it said.

The RM31.5bil losses, it said, were hidden using “unconventional accounting treatments”, such as booking losses to reserves in the balance sheet and the absorption of the remaining losses by the transfer of shares from the Government to BNM as well as the creation of a “Deferred Expenditure” to be repaid in instalments over a decade.

“All the actions to conceal the losses were discussed and approved by the board of directors before the accounts were signed off by the Auditor-General.

“No further action was taken by the Finance Minister and Treasury secretary-general (as a board member) despite being informed by the Auditor-General on the losses and the unusual accounting treatments,” said the report.

Anwar, noted the Commission, had been informed about the actual forex losses suffered by BNM.

Dr Mahathir, it said, was informed by Anwar together with then Treasury deputy secretary-general Tan Sri Clifford Francis Herbert in late 1993 that BNM had suffered estimated losses of RM30bil on the forex dealings for 1992 and 1993.

However, in the extract of minutes from three Cabinet meetings on March 30, April 6 and 13 in 1994, Anwar had made “no mention of the actual losses of RM12.3bil for 1992 and RM15.3bil for 1993.”

Anwar had chaired the March 30 meeting as the deputy prime minister. The losses for 1993 were reported as RM5.7bil.

“The prime minister, who chaired the meeting on April 6, did not correct or offer more information when the forex losses for 1993 were recorded as only RM5.7bil,” it pointed out.

“The Commission is of the view that it is the finance minister’s responsibility to inform the Cabinet the significant financial affairs about BNM as the Cabinet has collective responsibility with the finance minister and the prime minister for the country’s affairs.”

Dr Mahathir, it said, claimed to have no knowledge of the real amount of losses, which was untenable with his meticulous nature, as well as that under the law, BNM was the banker and financial agent to the Government with the remainder of its net profit to be paid into the Federal Consolidated Fund.

The report said as pointed out by Herbert, he had expected Dr Mahathir to be outraged but his reaction was quite normal with him uttering “sometimes we make profit, sometimes we make losses”.

“His reaction to and acceptance of the huge forex losses suggest that he could have been aware of the forex dealings and its magnitude,” said the report.

The RCI also found Dr Mahathir’s claim that he could only remember the amount of RM5bil forex losses when informed about it in a meeting with Anwar and Herbert in late 1993 to be “questionable”.

It said this was because based on testimonies of other witnesses and documentary evidence, the RM5.7bil only surfaced when Bank Negara’s 1993 annual report was presented to the Cabinet on March 30, 1994.

“Despite his denials, the Commission is of the opinion that a thorough investigation should be carried out to determine the extent of his involvement and liability,” said the report.

By Martin Carvalho, Hemananthani Sivanandam, Loshana K. Shagar, and Rahmah Ghazali The Star

Police set up taskforce to probe possible criminal offences over Bank Negara’s forex losses

Inspector-General of Police Tan Sri Mohamad Fuzi Harun says police will
open investigation paper following a report that was lodged by Royal
Commission of Inquiry (RCI) secretary Datuk Dr Yusof Ismail. (Image is
for illustration purpose only).

KUALA LUMPUR: Police have set up a taskforce to investigate possible criminal breach of trust and cheating which may have been committed during Bank Negara Malaysia’s foreign exchange losses in 1990s

Inspector-General of Police Tan Sri Mohamad Fuzi Harun said police would open investigation paper as the forex Royal Commission of Inquiry (RCI) had lodged a police report this afternoon.

“A taskforce has been formed and it will lead the investigation. We are investigating the case under Section 409 of the Penal Code for criminal breach of trust,” he told the New Straits Times when contacted.

RCI’s secretary Datuk Dr Yusof Ismail, who is the Finance Ministry Strategic Investment Division director, had lodged a report at Putrajaya police headquarters at 4.10pm asking police to start an official investigation.

In the police report, it was stated that those who were involved in the alleged wrongdoings were Bank Negara Malaysia (BNM) officers, BNM Board of Members, National Audit Department, Finance Ministry and the prime minister who served during the period.

Royal Commission of Inquiry (RCI) secretary Datuk Dr Yusof Ismail seen
leaving the Putrajaya police headquarters after lodging a report. Pic by
AHMAD IRHAM MOHD NOOR

The RCI, in its 528-page report that was tabled in Parliament today, said it believed that Datuk Seri Anwar Ibrahim, who was Finance Minister at the time, had misled the government and concealed the actual losses suffered by BNM.

RCI also said it believed that the prime minister at the time, Tun Dr Mahathir Mohamad, had approved Anwar’s “misleading statements”.

The commission also revealed that the losses were far larger than that what was initially reported by the central bank, RM31.5 billion as against RM5.7 billion, in the period of three years.

Yusof spent almost 40 minutes at the police headquarters and later spoke to reporters who were waiting outside.

He said in the report, the commission had requested the police to start a official investigation on the possible criminal breach of trust, forgery and other wrongdoings which may have been committed during the forex activities.

“Our report is basically requesting the police to start investigation and for the Attorney-General Chambers to take action based on the findings by the police,” he said.

Putrajaya OCPD Asst Comm Rosly Hassan who confirmed that the report was made, said a special unit in Bukit Aman would investigate the case.

By TEOH PEI YING and HASHINI KAVISHTRI KANNAN New Straits Times
Related Links:

 PROBE NOR MOHAMED, DR Mabatbjr, ANWAR – PressReader

It recommends that they be investigated for possible CBT, fraud

FILE PIC
Former finance minister Tun Daim Zainuddin after giving his statement to the Royal Commission of Inquiry in September.
THE RCI believes Datuk Seri Anwar Ibrahim had concealed Bank Negara’s actual forex losses from the cabinet, and that Tun Dr Mahathir Mohamad condoned his actions. The panel, in confirming that RM31.5 billion was lost, says there are grounds to investigate them for criminal breach of trust and fraud.
THE Royal Commission of Inquiry (RCI) into Bank Negara Malaysia’s (BNM) foreign exchange (forex) losses in the 1990s has recommended investigations against former prime minister Tun Dr Mahathir Mohamad and his one-time deputy, Datuk Seri
Anwar Ibrahim.
The RCI, in its 528-page report that was tabled in the Dewan Rakyat yesterday, said the duo had
concealed facts from the cabinet.
It also recommended that Dr Mahathir and Anwar be investigated for criminal breach of trust and fraud.
“There is a basis for an official police investigation into BNM board of directors, National Audit Department, then finance minister and prime minister for criminal breach of trust and fraud in the performing of the speculative forex transactions and in hiding the losses from the cabinet and Parliament,” the report said.
Former BNM adviser Tan Sri Nor Mohamed Yakcop was also implicated as the commission found that he was responsible for the billions of ringgit in losses.
RCI had recommended that Nor Mohamed be investigated for alleged criminal breach of trust and for allegedly contravening the Central Bank Ordinance 1958.
The commission also found that former finance minister Tun Daim Zainuddin had allegedly abetted Nor Mohamed. Daim was finance minister until 1991 before he was replaced by Anwar.
BNM lost RM31.5 billion in forex trading between 1992 and 1994. Nor Mohamed was
in charge of several portfolios in BNM at the time, including the management of external reserves.

 

BN and Opposition reps at loggerheads over report – Nation

RCI says Dr M helped in concealing RM31.5bil forex losses 

RCI says Dr M helped in concealing RM31.5bil forex losses …

‘Probe Nor Mohamed for possible CBT’ – Nation

Royal commission recommends CBT probe on Nor Mohamed over ..

RCI: Daim abetted Nor Mohamed in committing CBT | Free Malaysia …

Royal commission recommends criminal probe against Anwar …

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EPF investment income rises 5.13% in Q3 to RM12.95 bil, has benefited from overseas equities


The Employees Provident Fund (EPF) reports an increase in quarterly investment income to RM12.95 billion for the third quarter ended Sept 30, 2017 (Q3 2017), despite recorded net impairment of RM791.55mil in the third quarter, more than double the impairment made a year earlier. The EPF posted a 74% surge in investment income to RM11.8bil in the first quarter and a 36.6% growth to RM11.51bil in the second quarter.

 

KUALA LUMPUR: The Employees Provident Fund (EPF) today reported an increase in quarterly investment income to RM12.95 billion for the third quarter ended Sept 30, 2017 (Q3 2017), up 5.13 per cent, from RM12.32 billion recorded during the same period last year.

“The EPF’s overall portfolio performance has benefited from the rally in overseas equities markets in the third quarter of 2017,” Investment Performance, Deputy Chief Executive Officer (Investment) Datuk Mohamad Nasir Ab Latif said today.

He said the pension fund did not see similar returns from the domestic equities market as the FBM KLCI performance was flat compared with other markets, which recorded between two and five per cent growth.

The EPF recorded a net impairment of RM791.55 million, in the quarter under review, in accordance with the Malaysian Financial Reporting Standards (MFRS 139), and this was higher compared with RM349.59 million recorded in the same quarter last year, he said in a statement today.

This is due to the higher provision recorded for domestic equities in the telecommunications and oil and gas sectors.

In the third quarter of 2017, equities, which made up 41.86 per cent of EPF’s total investment assets, contributed RM7.91 billion of income or 61.09 per cent of the total investment income.

The income recorded was 12.75 per cent higher than RM7.02 billion recorded in the corresponding quarter in 2016, he said.

As at September 2017, a total of 50.45 per cent of EPF’s investment assets were in fixed income instruments which recorded an income of RM4.49 billion, equivalent to 34.63 per cent of the total quarterly investment income, said Mohamad Nasir.

Out of the RM4.49 billion, Malaysian Government Securities & Equivalent recorded RM2.17 billion in the third quarter of 2017, an increase of 10.96 per cent or RM213.98 million, from RM1.95 billion recorded in the same quarter in 2016, in line with the growth of the portfolio.

Loans and bonds, however, generated lower investment income of RM2.32 billion compared with RM2.56 billion in the same quarter last year, he said.

Investments in Money Market Instruments and Real Estate and Infrastructure each represented 3.53 per cent and 4.16 per cent of total investment assets, and contributed an investment income of RM274.27 million and RM263.83 million, respectively, in the third quarter of 2017.

“Our current investment in money market instruments is above the targeted three per cent under the Strategic Asset Allocation due to the ongoing regulatory restrictions in new overseas investments.

Over the long-run, the EPF must continue to expand our foreign assets portfolio as it is key to our diversification and allows us to meet our return targets,” said Mohamad Nasir.

As at Sept 30, 2017, the EPF’s overseas investments, which accounted for 30 per cent of its total investment asset, contributed 48 per cent to the total investment income during the quarter.

Diversification into different asset classes in various countries and currencies had helped the EPF to record higher income for the quarter, despite a significant difference in market performance, globally.

Out of the total RM12.95 billion investment income for the third quarter of 2017, a total of RM860.83 million was allocated for Simpanan Shariah, which derived its income solely from its portion in Shariah assets, while RM12.09 billion income was allocated for Simpanan Konvensional, which is generated by its share of both Shariah and non-Shariah assets, he said.

The value of EPF investment assets reached RM771.20 billion, a 5.48 per cent or RM40.09 billion increase from RM731.11 billion, as at Dec 31, 2016.

Out of the total investment assets, RM370.10 billion or 48 per cent, were in Shariah-compliant investments and the balance in non-Shariah assets.

“We still have one more quarter before the year-end and we are confident that our diversification into various asset classes will enable us to meet our real dividend target of at least two per cent above inflation over a three-year rolling period, for both Simpanan Shariah and Simpanan Konvensional,” he added.

The EPF posted a 74% surge in investment
income to RM11.8bil in the first quarter and a 36.6% growth to
RM11.51bil in the second quarter.

Source: BERNAMA

Related Links:

 

EPF 2Q investment income rises 37% to RM11.5b | The Edge Markets

 1 Malaysian Ringgit equalsvv0.24 US Dollar

Chart of exchange rate values over time

Malaysian Ringgit Forecast – Trading Economics

https://tradingeconomics.com/malaysia/currency/forecast The Malaysian Ringgit is expected to trade at 4.20 by the end of this quarter, according to

Trading Economics global macro models and analysts expectations.

Chinese are the unsung heroes of South East Asia: Robert Kuok Memoirs


They are the most amazing economic ants on Earth, ‘Sugar King’ writes in memoir

Good Chinese business management is second to none; the very best of Chinese management is without compare. I haven’t seen others come near to it in my 70year career. Robert Kuok

The overseas Chinese were the unsung heroes of the region, having helped to build South East Asia to what it is today, said Malaysian tycoon Robert Kuok (pic).

He said that it was the Chinese immigrants who tackled difficult task such as planting and tapping rubber, opening up tin mines, and ran small retail shops which eventually created a new economy around them.

“It was the Chinese who helped build up Southeast Asia. The Indians also played a big role, but the Chinese were the dominant force in helping to build the economy.

“They came very hungry and eager as immigrants, often barefooted and wearing only singlets and trousers. They would do any work available, as an honest income meant they could have food and shelter.

“I will concede that if they are totally penniless, they will do almost anything to get their first seed capital. But once they have some capital, they try very hard to rise above their past and advance their reputations as totally moral, ethical businessmen,” Kuok said based on excerpts of his memoir reported in the South China Morning Post .

“Robert Kuok, A Memoir’ is set to be released in Malaysia on Dec 1.

Kuok said the Chinese immigrants were willing to work harder than anyone else and were willing to “eat bitterness”, hence, were the most amazing economic ants on earth.

In the extracted memoir published by the South China Morning Post, Kuok, pointed out that if there were any businesses to be done on earth, one can be sure that a Chinese will be there.

“They will know whom to see, what to order, how best to save, how to make money. They don’t need expensive equipment or the trappings of office; they just deliver.

“I can tell you that Chinese businessmen compare notes every waking moment of their lives. There are no true weekends or holidays for them. That’s how they work. Every moment, they are listening, and they have skilfully developed in their own minds – each and every one of them – mental sieves to filter out rubbish and let through valuable information.

“Good Chinese business management is second to none; the very best of Chinese management is without compare. I haven’t seen others come near to it in my 70-year career,” he said.

“They flourish without the national, political and financial sponsorship or backing of their host countries. In Southeast Asia, the Chinese are often maltreated and looked down upon. Whether you go to Malaysia, Sumatra or Java, the locals call you Cina – pronounced Chee-na – in a derogatory way,” he said.

He added that the Chinese had no “fairy godmothers” financial backers.

“Yet, despite facing these odds, the overseas Chinese, through hard work, endeavour and business shrewdness, are able to produce profits of a type that no other ethnic group operating in the same environment could produce,” he said.

Kuok ultimately attributed the Chinese survivability in Southeast Asia to its cultural strength.

“They knew what was right and what was wrong. Even the most uneducated Chinese, through family education, upbringing and social environment, understands the ingredients and consequences of behaviour such as refinement, humility, understatement, coarseness, bragging and arrogance,” he said.

 

Related Links:

Malaysia’s economy: stronger but eroding purchasing power


The story is the same everywhere – the rising cost of living has not been accompanied by an increase in wages.

HERE we go again – another set of impressive growth figures. Bank Negara has announced Malaysia’s latest economic growth at a commendable 6.2% in the third quarter of 2017.

The pace of economic growth for the three months up to September was faster than the 5.8% registered in the second quarter of the year.

This growth rate was the fastest since June 2014.

On a quarter-on-quarter seasonally adjusted basis, the Malaysian economy posted a growth of 1.8% against 1.3% in the preceding quarter, according to the Statistics Department.

Malaysia’s robust economic growth has been attributed to private-sector spending and a continued strong performance in exports.

To quote Bank Negara governor Tan Sri Muhammad Ibrahim last Friday: “Expansion was seen across all economic sectors.”

But try explaining this impressive economic growth rate to the average salaried worker struggling to pay his monthly household bills.

Stretching the ringgit is especially great for those living in urban areas, and Malaysia is increasingly becoming urbanised.

The story is the same everywhere – the rising cost of living has not been accompanied by an increase in wages.

Compounding matters is the depreciation of the ringgit, reducing the purchasing power of the ordinary folk. They can’t buy the same amount of food as they used to previously.

Employers are being forced to cut operating costs to match declining profits.

Job security is becoming paramount. Many are fearful of losing their jobs, as companies cut cost to cope with the challenging business landscape.

And the reality is that many companies are not hiring, as evident from the unemployment rate of 3.4%.

The Malaysian Employers Federation (MEF) has cautioned that more people would be out of a job this year due to the current economic challenges.

Apart from the challenging landscape, technology has disrupted several brick-and-mortar businesses, forcing them to change their way of doing business.

According to MEF executive director Datuk Shamsuddin Bardan, economic challenges will compel bosses to review their workers’ requirements.

While official statistics show that the economy is charting a strong growth path, the trickle-down effect is not being felt.

Why is the sentiment on the ground different from what the politicians and officials are telling us? Why is there a disconnect in the economy?

Are the figures released by the government officials more accurate and authoritative compared with the loud grumblings on the ground that are anecdotical in nature devoid of proper findings?

We hear reports of supermarkets and hypermarkets closing down, but could that be because their business model no longer works as more Malaysians turn to online shopping, with e-commerce companies announcing huge jumps in traffic?

It is the same with the malls – retail outlets are reporting lower sales and this is compounded by the fact that there is an oversupply of malls.

International restaurant chains such as Hong Kong’s dim sum outlet Tim Ho Wan and South Korean bakery Tous Les Jours and South Korean barbeque restaurant Bulgogi Brothers have ceased operations.

But then again, it could be that their offerings and prices had failed to compete effectively against the local choices.

According to the central bank, demand is anchored in private-sector spending.

“On the supply side, the services and manufacturing sectors remain the key drivers of growth,” Muhammad said.

Looking ahead, the governor said that the economy this year is poised to register strong growth and likely to hit the upper end of the official target of 5.2%-5.7%.

The trickle-down effect is not being felt simply because there is uneven growth in the various sectors of the economy.

The property sector, which provides the biggest multiplier effect, continues to be in the doldrums.

The weak ringgit has had a big impact on the price of food, especially processed food and beverages that make up 74.3% of Malaysian household spending.

It was reported that Malaysia had imported a whopping RM38bil worth of food between January and October last year.

In recent weeks, the ringgit has strengthened to about RM4.16 against the US dollar. But it is still far from RM3.80 to the dollar and the outlook of the currency remains uncertain.

We can’t even hold our heads up against the Thai baht and Indonesian rupiah – two currencies that have appreciated against the ringgit.

The headline economic numbers are showing good growth, but Malaysians’ purchasing power has dropped and our living standards have eroded. That is the bottom line. We are living in denial if we do not admit this.

This column first appeared in StarBiz Premium.
Source: On the beat by Wong Chun Hai, TheStaronline

 

Related links:

Easing the people’s burden – Nation

 

Related posts:

Malaysia’s Budget 2018 Highlight

Penang tables election budget for 2018: higher defict of RM740.5mil, paints rosy economic picture …

Time to take fight against graft to the top, say group

 

Call to shed light on PDC’s huge debts owned to Penang govt


GEORGE TOWN: The state has been told to explain the financial status of Penang Development Corporation (PDC) over its alleged mounting debts.

Datuk Dr Muhamad Farid Saad (BN-Pulau Betong) said PDC received a RM600mil loan last year from Budget 2017, while in Budget 2018 the loan to PDC was approximately RM300mil.

Questioning if the debts indicate that PDC was not on stable financial ground, he asked if PDC would be able to pay back the huge sum to the state.

“Both loans are huge. How is PDC going to pay it all back?

“What has happened to the revenue of PDC in recent years? We would like some answers to the whereabouts of the expenditure on whether the sum was used for investment or loan to a third party.

“Is the PDC today not on stable financial ground until there were some who said that PDC has to take a bank loan to give out salaries,” he said when debating the Supply Bill and Budget 2018 at the state assembly sitting yesterday.

State Opposition Leader Datuk Jahara Hamid (BN-Telok Air Tawar) also raised her concern if PDC “was in the red”, considering that it was among the corporations in the past which had developed Bayan Baru and Seberang Jaya.

“PDC has also contributed to numerous state funds. But now, it is the opposite. PDC is borrowing money from the state government,” she said.

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Penang tables election budget for 2018: higher defict of RM740.5mil, paints rosy economic picture …



GEORGE TOWN: Penang has tabled a higher deficit state Budget of RM740.5million for the next fiscal year of 2018.

Chief Minister Lim Guan Eng when tabling the budget, stressed that it was an estimate and it can be reduced if the state records a higher revenue collection.

Among some of the initial highlights for the state was a free Rapid Penang bus service during peak rush hours in the mornings and evenings.

Allocations would also be given to aid the medical tourism and hi-tech manufacturing sectors.

Penang has tabled a projected budget deficit of RM748.5 million for next year, compared to a RM667 million deficit for this year as administration and living costs continue to escalate.

However, Chief Minister Lim Guan Eng stressed that the state has a unique distinction of tabling projected budget deficits every year yet recording actual surpluses.

Next year’s operating expenditure is RM1.25 billion, while the forecast revenue collection is RM503.7 million.

The cost savings come principally through the open tender system and an efficient administration, Lim told the state legislative assembly today.

After some 10 years of facing various external economic challenges, Lim said the state’s gross domestic product is projected to outstrip the national average growth of 5.2% for this year.

Penang is targeting a GDP growth of 6% this year with the main contribution coming from manufacturing and services, with farming also showing signs of promise through fish farming.

GDP per capita has increased from RM33,597 in 2010 to RM47,322 in 2016, a 30% increase. Penang’s GDP per capita is the second highest in the country, behind only Kuala Lumpur.

From 2015 to the first half of 2017, Penang attracted a total of RM13.8 billion in approved Foreign Direct Investment (FDI).

Tourism has also grown with the number of passengers at the Penang International Airport (PIA) hitting 6.7 million passengers in 2016, exceeding the airport’s capacity of 6.5 million passengers.

The success story in the last 10 years is reflected by annual budget surpluses since 2008, with accumulated budget surpluses over the eight year period between 2008 to 2015 reaching RM578 million.

Lim also announced a range of fresh initiatives, which pundits have described as a people-friendly fiscal plan designed to endear the state government to the voters with the next general election looming near.

> There is a “I Love Penang” card, which is a smartcard for all local residents that allows access to social amenities and benefits provided by the state. The public think tank Penang Institute will be the implementing agency for it, as they have been allocated a budget of RM4.5 million to produce and distribute the smartcards.

> A free public stage bus service was mooted during the daily peak hours in the mornings and evenings – it is aimed at reducing traffic congestion. The project is dependent on the cooperation of RapidPenang.

> Penang has allocated RM60 million to jumpstart a “Pinang Sihat” medical card programme for families whose combined household income is below RM5,000, where the state will subsidise treatment at private clinics.

A medical card will be issued to each recipient, who can only spend up to RM50 per visit to a panel of private clinics who are part of the Pinang Sihat scheme.

“This will help the recipients, who fall ill to see a doctor without worrying too much about expensive charges or travelling to government clinics that are far away from their homes,” said Lim.

> The free mammogram examination scheme for women above 35 years shall continue. So far more than 10,000 women have benefited.

> The state will also be increasing the annual payouts for senior citizens and the disabled from RM100 to RM300 for next year.

> A maximum bonus payout of RM2,000 will be accorded to civil servants who have a good disciplinary record while those below par will only receive RM1,000.

> The state will also allocate RM10 million for hill slope protection efforts, as well as to conceive a study on climate change, and tackle illegal farming.

Later, there was a protest at Komtar, led by former Penang PAS Youth head Mohamed Hafiz Nordin, who urged the state government to rescind the alleged appointment of PKR secretary-general Datuk Saifuddin Nasution Ismail as the new Penang Islamic Religious Council president, replacing Permatang Pasir assemblyman Datuk Salleh Man.

Hafiz argued that Saifuddin was not a religious scholar, therefore he was not suitable for the post. Saifuddin’s replied that holding protests is normal in a democracy.

Source:  Ian McIntyre and Imran Hilmi newsdesk@thesundaily.com

Much ado about nothing

Penang govt also gave an election budget, says MCA leader

“Public housing shortage is serious in Penang. Badminton courts and
swimming pools can be added into low and low medium-cost housing
projects. Tang Heap Seng”

WHAT is wrong with an election budget?

“Election budgets are happy and beneficial things for the rakyat,” said party secretary Tang Heap Seng.

He, however, advised Pakatan Harapan politicians not to “criticise something but did the same themselves”.

“Many Pakatan politicians criticised the Federal Budget and the Penang government did exactly the same.

“They claimed the Federal Budget will help Barisan Nasional win the general election.

“But then, the Penang government also gave an election budget,” said Tang during a press conference at the Penang MCA headquarters in Transfer Road yesterday.

Among the Budget 2018 goodies were Childcare Aid of RM300 for Working Mothers, RM300 aid for each local vocational school students and one-year waiver of business licence for about 29,000 hawkers and traders.

On the state Budget for next year, Tang said while there were many benefits, he was puzzled by the allocation of RM275mil to build 82 badminton courts and four Olympic-sized swimming pools.

“While sports are crucial to a happy society, we wonder why the state paid little attention to Penang’s urgent problems.

“Public housing shortage is serious in Penang. If the government wants to provide badminton courts and swimming pools, these could be added into low and low medium-cost housing projects,” he said.

Penang Gerakan vice-chairman Oh Tong Keong and secretary Hng Chee Wey also issued statements yesterday, expressing bewilderment at the RM275mil allocation.

In contrast, the tabled development expenditure for state Drainage and Irrigation Department is RM12.3mil.

Penang Island City Council and Seberang Prai Municipal Council will spend RM20mil on flood mitigation and for hillslope protection, RM10mil was budgeted.

Tang also said the RM53mil budgeted for the development of Islam was commendable, but wondered why only RM1.1mil would be given to Penang Hindu Endowment Board next year.

He said Chief Minister Lim Guan Eng only mentioned that RM30mil was given to non-Islamic religious development since 2008 when he tabled the Budget.

He said it would be ideal to allocate RM30mil each for the development of Christianity, Hinduism, Taoism, Buddhism, Sikhism and other minor religions yearly.

In a statement as well, Penang Women’s Development Corporation applauded the RM300 yearly aid for each working mother under the age of 60 with children aged six and below through the state Budget.

Meanwhile, Lim clarified that the bonus for civil servants would come from the reserved funds of this year’s Budget.

Earlier, Pulau Betong assemblyman Datuk Dr Muhamad Farid Saad had expressed confusion, saying, “How could you give a bonus this year through a Budget for next year?”

Malaysia’s Budget 2018 Highlights


KUALA LUMPUR: Prime Minister Najib Razak has tabled the RM280 billion Budget for 2018, his last before the next general election which must be called by middle of next year.

Below are Salient points of the budget from Dewan Rakyat.

Civil Servants

• 1.6 million civil servants to receive the following benefits:

– second round time-based promotions

– senior servants who retire due to health reasons will be accorded the same benefits as those who undergo mandatory retirement

– special leave for teachers increased to 10 days a year, up from seven

– seven days unrecorded leave for umrah pilgrimage

– women at least five months pregnant allowed to leave work an hour earlier while husbands accorded the same privilege if their work locations are in close proximity to each other

– maternity leave increased from 300 to 360 days throughout service with a maximum of 90 days a year

– RM1,000 set for minimum pension amount

Senior Citizens, Disabled, Children

• RM1.7 billion for the following areas:

– RM603 million to increase allowance of senior citizens from RM50 to RM350

– RM100 million to increase allowance for the disabled by RM50 a month

Digital Free Trade Zone

• RM83.5 million allocated for DFTZ in Aeropolis, KLIA.

• Increase minimum value for imports from RM500 – RM800.

Sustainable Development

• RM5 billion allocated under Green Technology Funding Scheme.

• RM1.4 billion to reduce non-revenue water programme.

• RM1.3 billion to build Off-River Storage as an alternative water source.

• RM517 million for flood mitigation plans nationwide.

Reduction in Income Tax Rates

• Reduction in individual income tax rates:

– RM20,001 – RM35,000: 5% to 3%

– RM35,001 – RM50,000: 10% to 8%

– RM50,001 – RM70,000: 16% to 14%

• Increase disposable income between RM300-RM1,000 while 261,000 do not have to pay tax

Foreign Domestic Helpers

• Allow employers to hire foreign domestic helpers directly without agent.

GST

• No change to Goods and Services Tax but government to propose either exemption or zerorising certain items and services.

– local councils

– reading materials

– cruise operators

– construction of schools and places of worship funded by approved donations

– oil and gas equipment imports under lease agreement

– import of big ticket items like planes and ships

– management and maintenance of homes with strata titles

Health

• RM27 billion for better quality health services.

• RM4.1 billion for medical supplies and consumables.

• RM1.4 billion to upgrade and maintain health facilities, equipment, ambulances and construction of operation theatres in three hospitals.

• RM100 million to upgrade hospitals and clinics.

• RM50 million to subsidise hemodialysis treatment; and RM40 million for medical assistance fund.

• RM10 million for treatment of rare diseases; RM30 million for health community programmes.

• RM50 million for voluntary health insurance scheme.

Housing

• RM2.2 billion allocated to boost home ownership.

BR1M

• 7 million benefited from RM6.8 billion in BR1M payouts and in 2018 the 7 million will continue to receive the same payout.

Orang Asli Benefits

• RM50 million for Orang Asli for economic development and quality of life enhancement.

• RM60 million for Orang Asli village development.

Indian and Chinese Benefits

• RM50 million for Chinese SME loans through KOJADI.

• RM30 million to be channelled to the 1Malaysia Hawkers and Petty Traders Foundation.

• RM65 million allocated for Chinese New Villages and RM10 million for house restoration.

• RM1.5 billion additional Amanah Saham units for Indians.

• Increase the intake of Indians to IPTA and public service (7%)

Bumiputera Benefits

• RM2.4 billion allocated to UiTM.

• RM3.5 billion for the following initiatives:

– RM2.5 billion for MARA higher education and training scholarships

– RM90 million for Program Peneraju Profesional, Skil dan Tunas

– RM200 million for MARA Graduate Employability Training Scheme or GETS

– RM555 million for Bumiputera Entrepreneurship Enhancement Programme (RM200 million for PUNB Entrepreneurship Programme and Business Premises; RM200 million for MARA Entrepreneurship; RM115 million for Vendor Capacity Programmes).

• RM150 million for Pelaburan Hartanah Berhad and RM150 million to EKUINAS.

Defence

• A total of RM14 billion for armed forces; RM9 billion for police force, RM900 million for Malaysian maritime.

• RM3 billion for purchase and maintenance of defence assets; RM720 million for the construction of 11 police headquarters and six police stations.

• RM490 million to MMEA for repair and maintenance of ships, boats, jetties and procurement of three patrol vessels.

• RM250 million to ESSCOM

• RM50 million to enhance weapon capability to combat terrorism.

• Government to build 40,000 houses in phases for families of armed forces personnel.

• RM40 million to upgrade five hospitals; build four polyclinics and one hospital for veteran armed forces personnel.

Rural Development

• RM200 million allocated for Felda for water supply and road upgrades.

• 112,ooo settlers will each receive windfall worth RM5,000.

• RM43 million allocation for Felda settlers and RM60 million for replanting of oil palm, RM164 million allocation to build 5,000 houses for second generation Felda settlers.

• RM1.1 billion for people-centric projects; RM1 billion to develop communication infrastructure; RM934 million for rural projects; RM672 million for electricity supply; RM420 million for clean water supply inclusive of RM300 million in Sabah and Sarawak covering 3,000 homes; RM500 million for public infrastructure maintenance; RM50 million for mapping and measuring of native customary land

– RM30 million for Sarawak, RM20 million for Sabah.

• RM6.5 billion for rural infrastructure which includes RM2 billion for the Pan Borneo Highway.

Education

• RM4.9 million allocated for 100 scholarships for TVET students.

• RM4.9 billion allocated for Technical and Vocational, Education and Training (TVET).

• RM200 million added to PTPTN fund for B40 families.

• Discount for repayment of PTPTN loans is extended to Dec 31, 2018 (20% for full repayment, 10% for 50% repayment, and 10% for direct debit salary deduction).

• RM100 for 3.2 million schoolchildren totalling RM328 million.

• RM2.9 billion for food aid, text books and minor federal scholarships.

• RM2.5 billion for maintenance of schools – RM500 million in Peninsula, RM1 billion in Sabah, RM1 billion in Sarawak, in addition to an existing special fund for maintenance.

• RM654 million for construction of four pre-schools; nine Permata schools; two centres for children with autism; 48 primary, secondary as well as vocational and matriculation centres.

• RM61.6 billion for development of education.

TN50

• RM20 million for Bukit Jalil sports school.

• RM112 million to construct 14 new sports complexes nationwide.

• RM1 billion to conduct sports initiatives to make country a sports powerhouse.

• RM50 million to fund social enterprise and NGOs to solve communities issues.

• RM40 million for open interview programme under the 1Malaysia training scheme (SL1M).

• All undergraduates and those in Form Six will continue to receive book vouchers.

• RM90 million for MyBrain programme for 10,600 students to further their studies at post-graduate level.

• RM400 million for research and development grants to public institutions of higher learning with a special allocation to Universiti Malaya to achieve status of Top 100 universities in the world.

• RM2.2 billion for JPA scholarships, the ministry of higher education and ministry of health.

• RM20 million for setting up of a Cultural Economy Development agency.

• RM190 million to upgrade 2,000 classes to become smart learning classrooms.

• To enhance present computer science module to include coding programme in primary and secondary school curriculums.

• RM250 million to build science, technology, engineering and mathematics centre.

• Special fund set up for children born between Jan 2018 to Jan 2022.

• Tax relief for employers who employ the disabled that include those involved in accidents and have critical illnesses.

• Local councils to make it mandatory for all new buildings to have childcare facilities, beginning in Kuala Lumpur.

Public Transport

• Government studying proposal for a new airport in Pulau Tioman.

• Government to build new airport for Mukah and expand airport for Kota Bahru and Sandakan.

• Government to upgrade Penang and Langkawi international airports.

• RM55 million transport subsidy for rural rail services from Tumpat to Gua Musang.

• RM45 million to create a biometric control system to monitor the movement of express bus services.

• RM95 million for the repair and construction of jetties as well as river mouth dredging.

• RM1 billion for public transport fund for start-up capital and procurement of assets like buses and taxis.

• RM3 billion for transport development fund for the purchase of maritime assets, aerospace technology development and rail.

Infrastructure

• Special border economic zone in Bukit Kayu Hitam to be developed.

• Pulau Pangkor to be declared a duty-free zone.

• RM230 million to continue central spine road project from Raub to Bentong.

• RM5 billion for the west coast coastal highway from Banting to Taiping.

• Government to expedite MRT3 project by two years from 2027 to 2025.

• RM32 billion for MRT2 project (Sg Buloh-Serdang-Putrajaya).

• RM110 million to provide alternative road to Port Klang.

Tourism

• RM30 million to be allocated to the Malaysian Healthcare Travel Council to boost medical tourism.

• RM500 million for the promotion and development of tourism.

• RM1 billion to tourism infrastructure development fund.

• RM2 billion fund for SMEs in tourism.

Agriculture

• RM200 monthly for a duration of 3 months for padi farmers while waiting to harvest their crops, which amounts to RM150 million.

• RM200 million for rubber replanting, RM140 million for development, re-planting and promotion of oil palm.

• Almost RM500 million to improve agriculture infrastructure.

• RM2.3 billion in incentives and assistance for the agriculture community.

• RM6.5 billion allocated to the smallholders, farming and fishing communities.

Other Highlights

• RM100 million with a 70% government-guaranteed loan for the furniture export industry.

• RM200 million allocated for training programmes, grants and SME easy loans under SME Corp; and close to RM82 million for halal products and industry development.

• RM2 billion set aside for 70% government-guaranteed loans.

• RM5 billion allocated for start-up capital for businesses.

• RM7 billion allocated to Skim Jaminan Pembiayaan Perniagaan.

• SMEs expected to contribute 41% of GDP by 2020.

• Private sector investment is expected to reach RM260 billion by 2018 and will be the engine of growth.

• Total investments in the country is expected to increase by 6.7% contributing to 25.5% to the GDP for 2018.

• RM26.34 billion for economic sector; RM11.72 billion for the social sector; RM5.22 billion for the security sector; RM2.72 billion for general administration sector.

• Administration budget is RM119.82 billion; other expenditure is RM1.08 billion; asset procurement is RM577 million.

• For 2018, federal government is expected to collect RM239.86 billion in revenue.

• Allocation for Budget 2018 is RM280.25 billion, an increase of over RM20 billion.

• B40 household income has increased to RM3,000 per month from RM2,629 for the period 2014-2016.

• Monthly median income has increased from RM4,585 in 2014 to RM5,288 in 2016.

• Current per capita income stands at RM40,713, expected to reach RM42,777 by 2018.

• Our international reserves now stand at US$101.4 billion.

• In August, exports hit a high of RM80 billion, recording double-digit growth.

• 69% or 2.26 million new jobs created so far from the target 3.3 million to be created by 2020.

• 3 international credit rating agencies have reaffirmed our A-rating with stable prospects.

• Looking at 2009, our fiscal deficit was at 6.7% of the GDP and is expected to decrease to 3% in 2017 and 2.8% in 2018.

• Actual private investment for 2016 is over RM211 billion.

• Government projection growth of between 5.2% to 5.7% for 2017, higher than the projection in March of between 4.3% and 4.8%.

• Projected GDP increase from 4.9% to 5.2% for 2017.

• The country has had a growth rate of 5.7% in the first half of 2017.

Source: Free Malaysia Today

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