Cutting-edge satellite launched by private Chinese company: GalaxySpace


Galaxy Space plans to establish a low Earth orbit 5G constellation. Credit: Galaxy Space.

China’s most powerful low-orbiting communication satellite, also the biggest spacecraft ever built by a private Chinese company, was launched in Northwest China.

The GalaxySpace 1, designed and built by the Beijing-based startup GalaxySpace and launched yesterday, is also widely considered the country’s first 5G-capable satellite.

The 200kg satellite was lifted at 11.02am atop a Kuaizhou 1A rocket from the Jiuquan Satellite Launch Centre in the Gobi Desert, according to a statement by GalaxySpace.

It has a transmission capacity of 10 Gigabits per second and uses multiple bands such as Q/V and Ka, the company said.

China has been going all-out to boost and promote 5G communication technology, regarding it as one of the major driving forces for future social and economic development.

China lofts 4 satellites into orbit with its second launch of 2020 …

https://www.space.com/china-long-march-2d-satellites-january-2020-launch-success.html

 

China launches Yinhe-1 commercial low Earth orbit 5G satellite

 

Liftoff of the Kuaizhou-1A light solid rocket from Jiuquan at 10:02 p.m.
Eastern Jan. 15 carrying the Yinhe-1 5G satellite. Credit: CASIC

China sends six satellites into space with a single rocket

Mobile coverage snag as uers in many areas face connectivity issue while Malaysia moves into 5G era!


Pix for representational purpose only.

While Malaysia strives to move into the 5G era, the current 4G mobile network connectivity is still found wanting in many areas in the country, including the Klang Valley.

Mobile users in areas such as Taman TAR in Ampang, Jalan Damai Jasa in Alam Damai, Cheras Hartamas and certain areas in Subang, Selangor, face connectivity issues.

Wong Sew Kin, a senior lecturer at the Faculty of Engineering, Multimedia University, said there are areas within the Klang Valley that face a drop in network signals.

“Even places near my house in Bukit Beruntung, Rawang, have no signal at all let alone the internet,” he said, adding that more needs to be done for telecommunications infrastructure in Malaysia if it is to be on par with nations such as Singapore and China.

“We are venturing into 5G now but there are still problems with connectivity. We should address this to solidify our mobile network infrastructure so that we are able to make quick and steady advancement without having to worry about minor issues. It is important that we iron out the kinks.”

He added the lack of network signals can be attributed to the lack of base stations, or simply known as telco towers, in certain areas.

“As far as I know, the building of base stations has nothing to do with the government as it’s usually up to the telcos and they prioritise providing network connectivity in highly populated and commercial areas.

“However, the government can play its part by providing incentives for telcos to set up more base stations to ensure that we are fully connected,” he said.

Anusha Ravi, a resident of Alam Damai in Kuala Lumpur, told theSun she often has to direct her e-hailing drivers through the phone to her residence as the drivers are unable to use navigation apps due to the poor network signal.

A resident of Taman Billion in Cheras, Kuala Lumpur, said he has faced poor network coverage for years despite being close to commercial areas.

“I have complained about this many times but nothing has been done,” he said, adding that he has to walk some distance away from his house just to make a call.

However, another expert who declined to be named, specialising in base station construction and installation, said the government is already doing all it can to ensure connectivity.

“The government, through the Malaysian Communications and Multimedia Commission’s Universal Service Provision fund, provides contractors and telcos opportunities to develop network infrastructure and connectivity in under-served areas, especially rural places.

“To my knowledge, sometimes we face issues such as a drop in network signals due to lack of base stations within a certain range. Sometimes there is no land to build base stations in between.”

Telcos sometimes face problems when planning to build base stations due to protests by residents in the area.

For instance, residents in Taman Sri Puteri, Bayan Lepas in Penang, successfully lobbied for the removal of telco towers in their area recently.

Among their reasons was that the towers were too close to their homes and thus were a health hazard.

Tutela, an independent crowdsourced data company, noted in its “State of mobile Networks 2019: Southeast Asia” report last year that Thailand beat Malaysia in a test where a mobile connection was good enough for basic internet usage.

The Philippines and Indonesia came out third and fourth.

“All four countries in the report are relatively close when it comes to basic quality. Thailand takes first place, with users able to make a voice over internet protocol call – a technology that allows you to make voice calls using a broadband internet connection or check emails at least 92.5% of the time when connected to one of the country’s networks.”

Source link

Read more: 

Multiple bidders for 5G

 

MCMC: Final report on National Digital ID expected ready by June 30

 

MCMC to undertake tender process for 5G spectrums

Mixed views on 5G plan

MCMC: Action will be taken against telcos if they fail to comply .

https://www.thesundaily.my/local/mcmc-action-will-be-taken-against-telcos-if-they-fail-to-comply-with-standards-MK1862781

Related posts:

Penang, a hub for 5G RF chip production

5G to move Malaysia forward

 

China submits 5G technologies to International Telecommunication Union (ITU) as global standards.

 

Digitalisation and its impact 

Huawei developed own operating system Hongmeng OS; 5G商用 中国准备好了! China roll-out affordable 5G

The battle over 5G network suppliers is part of a broader push by the Trump administration to check China’s rise as a global technology powerhouse.PHOTO: REUTERS 

New decade, new Malaysian education: For the sake of our children and our future, Mazlee’s replacement should be a
qualified and capable

Blockchain: Internet of Value/ Currency of Trust; Private cryptocurrency a misallocation among blockchain technology, say research & economist


  • Blockchain embodies the internet of value. How will it revolutionize our lives and our pockets?

  •  And, we look at the qualities Blockchain needs to spark mass adoption.

Blockchain, one of the buzzwords in technology, is set to rise in China. Recently,
Chinese President Xi Jinping underscored the fledgling technology as the country increasingly views Blockchain as key to future innovation. Has a digital game changer arrived? How will a boom in Blockchain impact our lives? Today we delve into the world of the new technology and talk to Don Tapscott, co-founder and executive chairman of the Blockchain Research Institute, to find out more.

Currency of Trust

Blockchain has the potential to be revolutionary. But, what hurdles must it overcome before it can hit the mainstream? In London, we invited Patrick McCorry, founder and CEO of PISA Research, a grant funded by a group of Blockchain companies, to decode this ever-changing world.

Private cryptocurrency a misallocation among blockchain technology, says economist

Cryptocurrency is digital-based cash among the internet world nowadays. Born from blockchain, this kind of “currency” is blooming in terms of high privacy. Acknowledging that, Nobel Prize-winning economist and Harvard professor Eric Maskin commented that private cryptocurrency is a misallocation.

“The most important application of blockchain so far has been cryptocurrency, and that is a terrible misallocation. In my view, cryptocurrency, at least private cryptocurrency like bitcoin is a mistake,” said Maskin.

“Because the public currency like RMB and U.S. dollar are much more useful than private currency. [Public currencies] they preserve the power of central banks to conduct monetary policy. If no one is using the dollar, then the U.S. monetary policy is useless. So I’m worried about cryptocurrency only to the extent that it reduces the use of currencies like RMB or dollar,” he added.

He also pointed out that cryptocurrencies could interfere with central banks’ monetary policies.

Meanwhile, Maskin supports the idea that blockchain is a technology. He noted that it is one of the exciting developments that have come along in recent years.

“Blockchain can make all sorts of transactions much easier and much more secure. It can also ensure that only the information that people need to have gets transmitted,” said Maskin.

“Blockchain is a way for me to guarantee that only what you need to about me gets told. And that’s valuable in a world where we’re beginning to worry about privacy issues,” the professor explained.

Besides, Maskin supports building the country’s own digital currencies. With the backdrop of e-payment booming around the world, Maskin said the digital currency can make transaction easier but it won’t have all of the unpleasant side effects of these private currencies.

Source link
Read more:

Blockchain with Chinese characteristics

 

 

 

Budget that braces for tough times


Broad measures spelt out under Budget 2020 will likely sustain the economy, if there is no further escalation in trade fights.

A glimmer of hope emerged after the US outlined the first phase of a deal to settle some issues related to trade, but there is a lingering suspicion that China could be just buying time as it will most likely not concede to any loss of sovereignty.

China is developing its own ecosystem that could be “outside the reach” of the US, and it is possible that the time bought with such rearguard actions may allow China to achieve its aims.

Malaysia, a trade dependent economy, can only hope that it all works out well, if it can integrate into both ecosystems, said Inter-Pacific Securities head of research Pong Teng Siew.

More stimulus measures would be undertaken should the global economy worsen and in the worst case scenario, Malaysia would have room to spend more if it increases the budget deficit, currently at 3.2% of the gross domestic product (GDP).

The worry is that a further deterioration in global trade tensions may push the global economy into recession. If that does not happen, these Budget 2020 measures should be able to sustain the economy, according to RHB Research Institute chief Asean economist Peck Boon Soon.

Given the external headwinds that continue to pose more downside risks, it looks like Budget 2020, which attempts to spread out its positive effects, has been designed to brace for rough times.

Some positive impetus could be derived from measures to support tourism, construction and infrastructure, as well as small and medium scale enterprises (SMEs), said AmBank Research head Anthony Dass.

Tourism-related businesses such as food and beverage, accommodation, travel and transport, shopping and entertainment will likely benefit.

Recognising the importance of SMEs in driving growth, a string of measures to facilitate their financing needs, ease of doing business, faster adoption of high technology and green initiatives, should also bode well.

The bottomline is that resources are limited while the government still aims for fiscal consolidation and repayment of all debts.

Spreading out these scarce resources will probably succeed in paring off any broad-based slowdown, but it will be hard to make a dent when the sense of a loss in economic momentum is gradually settling in, said Pong.

More measures are required to stimulate the economy but in view of the gloomy global outlook and domestic issues, it is still overall, a good budget.

However, the allocation between capital and operating expenditure is still imbalanced; there is too little capital expenditure and there appears to be ‘little effort’ to reduce operating expenditure.

This will have a long term effect, especially in an aging society, according to Areca Capital CEO Danny Wong. In view of concerns over the lack of investments and falling revenue, efforts to boost foreign direct investments and tourism are welcome but more robust steps are required.

A correction in property prices may be a remedy for the overhang and inaffordability issues especially among young people.

The budget tries to forestall a price pullback, which would affect developers stuck with high land prices, by allowing foreigners to fill the demand gap.

But demand has evaporated, partly caused by the migration of mid-level talent and delays in household formation, the driver of long term demand and new home construction. Developers, lulled by the padding of demand through low interest rates for borrowers, high financing margins and easy access to debts, find it hard to lower prices.

They had thought the elevated level of demand was sustainable but it was not. Reduced prices may mean less profits but possibly a lifeline by way of cashflows, and may help restore delays in household formation and loss of talent, said Pong.

A worrying trend is that more and more young Malaysians are moving out of the country in search of jobs.Even mid-level expertise and talent is migrating; previously, it was mostly those who were highly mobile internationally.

A major cause is the lack of growth in real purchasing power.

Is the projected GDP growth of 4.8% achievable?

With the government continuing its spending and development initiatives, growth should remain robust, supported by services and construction, higher production from agriculture and mining. But manufacturing is expected to moderate.

Malaysia can achieve its 4.8% growth target, said Hong Leong Bank chief operating operating officer, global markets, Hor Kwok Wai.

However, in view of slower world GDP growth of 2.8%, AmBank Research expects growth of 4.0% with an upside of 4.3% for Malaysia.

Coming up with a further set of stimulus, should things worsen, may be a challenge.

Columnist Yap Leng Kuen is watchful of the tech war. The views expressed are the writer’s own.

Source link

 

Read more:

TAR UC again made political pawn in Budget 2020

https://www.pressreader.com/malaysia/the-star-malaysia/20191020/281698321521077

 

‘Budget 2020 favours the rich’

 

 


Budget 2020 is a capitalist budget that neglects the poor, says …

 

 

Viewing trade talks progress with rationality, calmness

Ending the trade war benefits whole world

Both China and the US still have resources to sustain a  trade war, but further consumption of those resources is unnecessary  since their goals have proved naive and absurd. The situation is still highly uncertain, but the historical indicators will gradually be corrected. China and the US will not get lost and the world will benefit from the implementation of the consensus reached by the two heads of state, assuming the responsibility to both countries and the world and moving steadily towards the final end of the trade war in stages.

 

Related post 

 

 

 

Design engineers at fault in landslide tragedy, act against negligent engineers


Design engineers at fault in landslide tragedy | The Star Online
https://rightways.files.wordpress.com/2017/10/8723e-penang2blandslide_tanjung2bbungah1.jpg

GEORGE TOWN: The State Commission of Inquiry (SCI) tasked with investigating the Tanjung Bungah landslide in October 2017 has found the design engineer of the slope primarily responsible for the incident that claimed 11 lives.

The SCI, in its 116-page report made public, has recommended that the engineer be investigated by the police under Section 304A of the Penal Code for gross negligence.

Besides the engineer, the commission found another design engineer responsible for being “contributorily negligent” for allowing excavation to be carried out without design, engineering calculations and supervision.

Chief Minister Chow Kon Yeow said the commission found that the slope failure was a man-made tragedy and entirely preventable if those in charge had taken necessary and proper steps to ensure the stability of the slope and the safety of the workers.

“The landslide did not develop overnight, it was a disaster waiting to happen over a period of time.

“There were ample warnings which were sadly unheeded or inadequately heeded,” Chow said of the report at a press conference at his office in Komtar here yesterday.

Chow said the report, dated July 22 this year, was a result of public hearings conducted over 26 days with testimonies from 28 witnesses.

“The commission also considered voluminous documents, reports, photographs and drawings, as well as the opinions of six expert witnesses.

“The report provides further analysis of the background facts, excerpts of testimonies recorded during the hearings and findings on liability against several parties,” he said.

The commission also found the Occupational Safety and Health Department negligent for failing to take adequate steps to ascertain the extent of the danger posed by the unsafe slope, by not promptly issuing a prohibition notice after its visit to the site on Aug 18, 2017, which was two months before the fatal incident.

Chow said copies of the report would be sent to the police, Attorney General’s Chambers, Board of Engineers Malaysia and other authorities involved.

“The report also contains nine recommendations that the commission hopes will serve as guidelines and prevent such incidents from recurring,” he added.

On Oct 21, 2017, a temporary slope in the construction site of a high-rise apartment block in Tanjung Bungah collapsed while workers were trying to stabilise it. Tonnes of earth crumbled, killing 11 workers.

The full SCI report can be bought at Level Three, Komtar, for RM50 per copy between Sept 3 and 30. For more details, call 04-650 5480.- Source link

Chow: Agencies have to act against negligent engineers

Penang chief minister Chow Kon Yeow

GEORGE TOWN: It is up to the relevant agencies to take action against the consultant engineers who were found negligent, resulting in the Tanjung Bungah landslide tragedy, says Chief Minister Chow Kon Yeow.

“It is up to the agencies and the police to take action as recommended by the State Commission of Inquiry (SCI).

“I have also directed the Town and Country Planning Department, Penang Island City Council, Seberang Prai Municipal Council and other related agencies to come up with recommendations to improve hill development.

“It was discussed at the State Planning Committee meeting and I have directed state housing, town and country planning and local government committee chairman Jagdeep Singh Deo to head the committee and come up with the recommendations within a month, ” said Chow at Komtar here yesterday.

It was reported that the SCI tasked with investigating the Tanjung Bungah landslide in October 2017 had found the design engineer of the slope primarily responsible for the incident that claimed 11 lives.

The SCI, in its 116-page report made public, had recommended that the engineer be investigated by the police under Section 304A of the Penal Code for gross negligence.

Besides the engineer, the commission found another design engineer responsible for being “contributorily negligent” for allowing excavation to be carried out without design, engineering calculations and supervision.

Penang Island City Council engineering director A. Rajendran, who was also present at the press conference, said the stop-work order on the project was lifted after the developer completed mitigation works.“However, different engineers have been overseeing the project since work resumed some time ago, ” said Rajendran.

On Oct 21,2017, a temporary slope at the construction site of a high-rise apartment block in Tanjung Bungah collapsed while workers were trying to stabilise it.

Tonnes of earth crumbled, killing 11 workers. – Source link

Read  more:

 

Tanjung Bungah landslide incident entirely preventable, concludes …

Act against engineers for negligence, urges Tanjung Bungah …

https://redirect.viglink.com/?format=go&jsonp=vglnk_156726176546621&key=254cddb573e642e1827d167e7cb18da8&libId=jzz5pxgy01015y3k000DA409assef&loc=https%3A%2F%2Frightwaysrichard.blogspot.com%2F2019%2F08%2Fdesign-engineers-at-fault-in-landslide.html&v=1&opt=true&out=https%3A%2F%2Fwww.google.com%2Furl%3Fsa%3Dt%26rct%3Dj%26q%3D%26esrc%3Ds%26source%3Dweb%26cd%3D4%26cad%3Drja%26uact%3D8%26ved%3D2ahUKEwiQ95j4yarkAhUNk3AKHQL6A4AQFjADegQIABAB%26url%3Dhttps%253A%252F%252Fwww.freemalaysiatoday.com%252Fcategory%252Fnation%252F2019%252F08%252F28%252Fact-against-engineers-for-negligence-urges-penang-landslide-commission%252F%26usg%3DAOvVaw0ewiXoWJlqKf6bKjMvHZNW&ref=https%3A%2F%2Fwww.blogger.com%2Fblogger.g%3FblogID%3D6414722382816633494&title=Rightways%20Technologies%3A%20Design%20engineers%20at%20fault%20in%20landslide%20tragedy%2C%20act%20against%20negligent%20engineers&txt=%3Cdiv%20class%3D%22ellip%22%3EAct%20against%20engineers%20for%20negligence%2C%20urges%20Tanjung%20Bungah%20…%3C%2Fdiv%3E

Penang commission moots criminal charges against consultant …

https://redirect.viglink.com/?format=go&jsonp=vglnk_156726183318422&key=254cddb573e642e1827d167e7cb18da8&libId=jzz5pxgy01015y3k000DA409assef&loc=https%3A%2F%2Frightwaysrichard.blogspot.com%2F2019%2F08%2Fdesign-engineers-at-fault-in-landslide.html&v=1&opt=true&out=https%3A%2F%2Fwww.google.com%2Furl%3Fsa%3Dt%26rct%3Dj%26q%3D%26esrc%3Ds%26source%3Dweb%26cd%3D5%26cad%3Drja%26uact%3D8%26ved%3D2ahUKEwiQ95j4yarkAhUNk3AKHQL6A4AQFjAEegQIARAB%26url%3Dhttps%253A%252F%252Fwww.malaymail.com%252Fnews%252Fmalaysia%252F2019%252F08%252F28%252Fpenang-commission-moots-criminal-charges-against-consultant-engineer-over-t%252F1785066%26usg%3DAOvVaw0KOnnTNCZro-TmSqRh0jB6&ref=https%3A%2F%2Fwww.blogger.com%2Fblogger.g%3FblogID%3D6414722382816633494&title=Rightways%20Technologies%3A%20Design%20engineers%20at%20fault%20in%20landslide%20tragedy%2C%20act%20against%20negligent%20engineers&txt=%3Cdiv%20class%3D%22ellip%22%3EPenang%20commission%20moots%20criminal%20charges%20against%20consultant%20…%3C%2Fdiv%3E

Related posts:

 

Penang landslide tragedy, plea went unheeded, no one listened !

 

 

Don’t allow another landslide tragedy to happen !

 

Penang landslide, whose faults?

 

Huge landslide in Tg Bungah hill

Landslide tragedy caused by slope instability, was a Construction mishap, not landslide!

 

Landslide nation, Malaysia ranks highly for landslides

 Penang landslide tragedy, why it happened?

 Penang Landslide occured days after remedial works started 

 

Penang floods and landslides, looking beyound natural causes!

Cracked drain causes road cave-in, house nearby on brink of callapse

 

Penang govt rapped over hill slope development

 

Invalid drainage and construction damaged nearby houses since 2014 must complete its mitigation quickly!

 

Penang floods, support pours in for dialogue

 

Penang Paya Terubong Residents living under shadow of fear!

Call to reassess Penang hillside projects, councillor addresses full council meeting of MBPP

Hills, landslides, floods and damaged houses: What to do?

 

Penang landslides & flooding are natural disasters man-made?

Has Penang Island’s growth & development become a hazard to life?

Fitch affirms Malaysia’s rating at A- with stable outlook, but heed the economic warning


Image result for Fitch ratings logo/images
 


Fitch Ratings

 

KUALA LUMPUR: Fitch Ratings has affirmed Malaysia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘A-‘ with a Stable Outlook.

According to a statement posted on the interantional rating agency’s website on Thursday the key rating drivers were its strong and broad-based medium-term growth with a diversified export base.

However, it also was concerned about its high public debt and some lagging structural factor.

Main points:

* GDP to grow at 4.4% in 2019 and 4.5% in 2020

* Global trade tensions to impact economy

* Private consumption to hold up well, public investment to pick up

* Outlook for private investment is more uncertain

* Weak fiscal position relative to peers weighs on the credit profile

* General government debt to fall from 62.5% of GDP in 2019 to 59.3% in 2021

* Malaysia relatively vulnerable to shifts in external investor sentiment

* Fitch expects another 25bp rate cut in 2020 on the back of continued external and domestic uncertainty.

* Banking sector fundamentals remain broadly stable

Fitch said Malaysia’s ratings balance strong and broad-based medium-term growth with a diversified export base, against high public debt and some lagging structural factors, such as weak governance indicators relative to peers.

The latter may gradually improve with ongoing government efforts to enhance transparency and address high-profile corruption cases.

Fitch expects economic growth to slightly decelerate in the rest of this year as a result of a worsening

external environment, but to hold up well at 4.4% in 2019 and 4.5% in 2020.

Malaysia is a small open economy that is integrated into Asian supply chains, but it also has a well-diversified export base, which helps cushion the impact from a potential fall in demand in specific sectors.

Global trade tensions are likely to have a detrimental effect on Malaysia’s economy, as with many other countries, but this may be partially offset by near-term mitigating factors, such as trade diversion, in particular towards the electronics sector.

Private consumption is likely to hold up well and public investment should pick up again in the next few years after the successful renegotiation of some big infrastructure projects, most prominently the East Coast Rail Link.

However, the outlook for private investment is more uncertain. FDI inflows were strong in the past few quarters, but investors will continue to face both external trade and domestic political uncertainty.

The Pakatan Harapan coalition took office in May 2018 with very high expectations. It has set a number of policy initiatives in motion, but holds only a small majority in parliament and has seen its previously high public approval rates fall significantly.

Uncertainty about the timing and details of the succession of the 94-year old Prime Minister Tun Dr Mahathir Mohamad also continues to linger.

A weak fiscal position relative to peers weighs on the credit profile. The government’s repeal of the Goods and Services Tax (GST) and replacement with the Sales and Service Tax (SST) soon after it took power has undermined fiscal consolidation.

The government aims to offset the revenue loss through measures to strengthen compliance, the introduction of a sugar tax and an increased stamp duty. Its fiscal deficit target for 2019 of 3.4% of GDP, which we believe will be met, includes a special dividend from Petroliam Nasional Berhad (PETRONAS, A-/Stable).

Political pressures and growth headwinds could motivate the government to increase its current spending, but we believe that if it does so, it would seek additional revenues or asset sales to contain the associated rises in the deficit and public debt.

Fitch estimates general government debt to gradually decrease from 62.5% of GDP in 2019 to 59.3% in 2021.

The debt figures used by Fitch include officially reported “committed government guarantees” on loans, which are serviced by the government budget, and 1MDB’s net debt, equivalent at end-2018 to 9.2% and 2.2% of GDP, respectively.

The government guaranteed another 9.2% of GDP in loans it does not service. The greater clarity provided by the government last year on contingent liabilities negatively influenced the debt ratios, but this is partly offset by the improved fiscal transparency.

Significant asset sales, as intended by the government, could result in a swifter decline in the debt stock than its forecast in its base case.

Progress in implementing reforms that institutionalise improved governance standards through stronger checks and balances, and greater transparency and accountability would strengthen Malaysia’s business environment and credit profile.

The World Bank’s governance indicator is still low at the 61st percentile compared with the ‘A’ category median of 76th.

An important change is that all public projects are now being tendered, which increases transparency, creates a level-playing field and should bring down project costs. Prosecution of high-profile cases may also help reduce corruption levels over time.

Malaysia has been running annual current account surpluses for the past 20 years, and Fitch expects it to continue to do so in the next few years, even though the surplus is likely to narrow to below 2% of GDP.

Foreign-reserve buffers were US$102.7 billion (4.7 months of current account payments) at end-June 2019, while other external assets are also significant, including from sovereign wealth fund Khazanah.

Malaysia is nonetheless relatively vulnerable to shifts in external investor sentiment, partly because of still-high foreign holdings of domestic government debt, although these have fallen to 21% from 33% three years ago.

Moreover, short-term external debt is high relative to reserves, although a significant part of this constitutes intra-group borrowing between parent and subsidiary banks domestically and abroad, reflecting the open and regional nature of Malaysia’s banking sector.

Monetary policy is likely to remain supportive of economic activity, after Bank Negara Malaysia’s (BNM) reduced its policy rate by 25bp to 3.0% last May, which seemed a pre-emptive response to increased external downside risk.

Inflationary pressures are limited with headline inflation at 0.2% in May 2019, still low due to the repeal of the GST and lower domestic fuel prices.

Fitch expects another 25bp rate cut in 2020 on the back of continued external and domestic uncertainty.

Banking sector fundamentals remain broadly stable. Elevated, but slightly declining household debt at 83% of GDP and property-sector

weakness should be manageable for the sector, but present a downside risk in case of a major economic shock.

The sector’s healthy capital and liquidity buffers, as indicated by the common equity Tier 1 ratio of 13.4% and liquidity coverage ratio of 155% at end-May 2019, help to underpin its resilience in times of stress.

SOVEREIGN RATING MODEL (SRM) and QUALITATIVE OVERLAY (QO)

Fitch’s proprietary SRM assigns Malaysia a score equivalent to a rating of ‘BBB+’ on the Long-Term Foreign-Currency (LT FC) IDR scale.

In accordance with its rating criteria, Fitch’s sovereign rating committee decided not to adopt the score indicated by the SRM as the starting point for its analysis because it considers it likely that the one-notch drop in the score to ‘BBB+’ since March 2018 will prove temporary.

Fitch’s SRM is the agency’s proprietary multiple regression rating model that employs 18 variables based on three-year centred averages, including one year of forecasts, to produce a score equivalent to a LT FC IDR.

Fitch’s QO is a forward-looking qualitative framework designed to allow for adjustment to the SRM output to assign the final rating, reflecting factors within our criteria that are not fully quantifiable and/or not fully reflected in the SRM.

RATING SENSITIVITIES

The main factors that, individually or collectively, could trigger positive rating action are:

* Greater confidence in a sustained reduction in general government debt over the medium term.

* An improvement in governance standards relative to peers, for instance through greater transparency and control of corruption.

The main factors that could trigger negative rating action are:

* Limited progress in debt reduction, for instance due to insufficient fiscal consolidation or further crystallisation of contingent liabilities.

* A lack of improvement in governance standards

KEY ASSUMPTIONS

* The global economy and oil price perform broadly in line with Fitch’s Global Economic Outlook (June 2019). Fitch forecasts Brent oil to average USD65 per barrel in 2019, USD62.5 in 2020 and USD60 in 2021.


The full list of rating actions is as follows:

Long-Term Foreign-Currency IDR affirmed at ‘A-‘;

Outlook Stable

Long-Term Local-Currency IDR affirmed at ‘A-‘;

Outlook Stable

Short-Term Foreign-Currency IDR affirmed at ‘F1’

Short-Term Local-Currency IDR affirmed at ‘F1’

Country Ceiling affirmed at ‘A’

Issue ratings on long-term senior unsecured local-currency bonds affirmed at ‘A-‘

Issue ratings on global sukuk trust certificates issued by Malaysia Sukuk Global Berhad affirmed at ‘A-‘


But heed of Fitch’s economic warning

 

Fitch Ratings has affirmed Malaysia's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'A-' with a Stable Outlook.
Fitch Ratings has affirmed Malaysia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘A-‘ with a Stable Outlook.

The international Fitch Ratings has given us a warning on the outlook for the Malaysian economy, which we should not ignore.

In preparing for the 2020 Budget, the government’s economic and financial planners should take heed of this friendly warning and act sooner rather than later. We should not let this warning pass, without having more consultations with Fitch, on how serious their constructive criticism could turn out to be.

Fitch Ratings has affirmed Malaysia’s long-term foreign currency issuer default rating at A-, with a stable outlook. But we must seriously take note of the several reservations that Fitch has made, and consider and monitor them, to remain on even keel and progress further.

What are these warnings?

High public debt

The national debt is now confirmed by Fitch to be high. By whatever standard of measurement used – by us, the IMF or the World Bank and other agencies – there is now consensus that our debt is indeed high, although still not critical.

However, the debt has to be watched closely. We have to ensure better management of our budget expenditures and strive to strengthen our budget revenues, to reduce the pressure to borrow more in the short to medium term.

Some lagging structural factors

The structural factors would refer to our need to raise productivity, increase our competitiveness and meritocracy and strengthen our successes, in combating corruption and cronyism.

How far have we advanced to deal effectively with these longstanding structural issues? In the minds of our foreign and even domestic investors, how successful have we been compared to the previous regime?

Fitch expects the economy to slow down to 4.4% this year and 4.5% in 2020. With the US -China trade war looming large and the general world economic uncertainty, investors can get even more jittery and hold back their investment plans. Thus, the low economic growth rates for this year and ahead should not be ruled out.

If the economy softens further to around 4% per annum, the implications of unemployment, and especially for our graduates, could be worrisome. The small and medium businesses and farmers and fishermen and smallholders in our plantation industries could suffer much from any slowdown.

But we are still slow and are struggling in trying to restructure the economy. We have not yet adopted major changes of transformation of the economy, which is largely raced-based to the vital requirement, to become more needs-based in our policies and implementation.

We need a New Economic Model but it has been difficult to adopt it as soon as possible.


Weak governance relative to peers

To be fair, many measures have been taken to strengthen the institutions of government. We have seen this in the parliament select committees, the Election Commission, the MACC and the civil service and other institutions.

We cannot do too much too soon, as good governance takes much longer to restore and build, after several decades of neglect in the past. But our people and investors are somewhat impatient for more rapid changes for better governance.

Fitch has, however, subtly warned us to compare our “weak governance relative to our peers”. Thus, we have to take note of the more rapid progress made by our neighbouring countries in Asean, like Vietnam, Thailand and Indonesia and, of course, Singapore, to measure our real success in good governance.

Investors have the whole world to choose from, to put their money where their mouth is. They also need not look at the comfortable physical climate and tax incentives alone to be attracted to invest in Malaysia.

Racial harmony, religious understanding and political stability are also major considerations for both domestic and foreign investors and professionals. This is where the reduction of the brain drain is important. But we continue to have strong outflows of brain power, which is debilitating.

Fitch warns that the PH government holds only a small majority in Parliament and has seen its previously high public approval rates fall significantly. Fitch’s assessment is quite correct. This has been due to too much politicking and allegation of sex scandals. All this does not give confidence to investors and even consumers who will be dampened in their enthusiasm to increase consumption and investment.

Fitch Ratings has subtly and politely warned us of the challenges we are facing. It has also emphasised in its usual guarded fashion the essential need for us to take heed of their advice and warnings, to make the necessary socio-economic and political adjustments, changes and even transformation, without undue delays.

We could face a real slowdown all round if we don’t consolidate our strengths to overcome our lingering weaknesses to forge ahead for a better Malaysia in the future – for all Malaysians.

By Tan Sri Ramon Navaratnam, chairman of the Asli Centre for Public Policy.

Read more:

 

Fitch Ratings: Semicon slump highlights world trade slowdown …

Fitch Ratings: Semiconductor slump highlights  world trade slowdown –
Business News  https://www.thestar.com.my/business/business-news/2019/07/19/fitch-ratings-semiconductor-slump-highlights-world-trade-slowdown/

Malaysia’s spiralling debt burden | The …theedgemarkets.com

 

 

 

Lower interest rates spur sector

 

 

Residential property needs ‘realistic’ evaluation | KLSE Screener

 

 

 

Related posts:

 

 

Malaysia’s RM1.09 trillion debt, 80.3% of GDP demystified

New anti-graft plan after slew of scandals

 

 

 

 

Penang’s LRT project gets conditional approval from Transport Minister


GEORGE TOWN: Waves of excitement swept through Penang when the Transport Minister announced that the Bayan Lepas light rail transit (LRT) has received conditional approval.

It is seen as a move to reduce traffic congestion in the city and create a next wave of growth for the state.

The approved 29.9km Bayan Lepas LRT will bring convenience not only to the local folk but also tourists and investors, said Federation of Malaysian Manufacturers Penang chairman Datuk Dr Ooi Eng Hock.

Ooi, who is positive that the project will spur growth on the island, believes the LRT will bring in another wave of development into the state.

“The LRT will divert traffic congestion. It will attract new investments, make life easier for our workforce.

“I believe it will boost the state’s economy with another wave of growth,” he said yesterday.

Following the Transport Ministry’s conditional approval of the project, Ooi added that it is the first step for a change in landscape and behaviour of transport mode in Penang.

Yesterday, the Transport Ministry gave conditional approval to the Bayan Lepas LRT project.

Transport Minister Anthony Loke in a statement said that after a detailed study of the application by Penang Economic Planning Unit (BPEN) to develop the Bayan Lepas LRT project, approval with 30 conditions for the state to comply was given on Tuesday.

Loke said the conditions included a detailed environmental impact assessment (DEIA) approval including traffic, social and heritage assess­ments.

The state must now exhibit documents on the project for three months, and the final go ahead will only be decided after the public responses are evaluated, said Loke.

“I welcome public participation from the people, NGOs and all stakeholders in this public review.

“The relevant documents are to be exhibited in public places including government offices.

“The state government must also upload a copy of these documents on a website for online viewing.

Penang Chief Minister Chow Kon Yeow thanked the Federal Govern­ment and said the state is committed to fulfilling all requirements.

“We will wait for the official letter from Transport Ministry to proceed and initiate public viewing of the documents,” he said.

The RM8.4bil Bayan Lepas LRT together with a monorail, cable cars and water taxis, is part of the state government’s RM46bil Penang Trans­port Master Plan (PTMP).

This LRT will begin at Komtar in the northeast corner of the island and head south through Jelutong, Gelugor, Bayan Lepas and Penang Interna­tional Airport, ending at the Penang South Reclamation (PSR) development.

It is expected to provide a fast route to the airport and will traverse densely populated residential, commercial and industrial areas.

Source link 

 

Related posts:

 

It’s time for Penang to reinvent itself; RM70bil to be raised from the 3
man-made islands to finance LRT, PIL infrastruture under PTMP

 

Penang all set to make waves as EIA approved, work of second phase of PSR has begun

Penang new Chief Minister taking Penang to the next level

https://youtu.be/mdtJqsLapZU/

 

Flat property market seen for Penang

 

China buyers eyeing Penang property in growing tourism

Boost for Bayan Lepas: Global biz hub for Penang

Hi-tech facility aims at rejuvenating economy in Bayan Lepas 

 

 
An artist’s impression of the proposed GBS By The Sea project in Bayan Lepas.

Good time to invest in property now

When will the property market pick up?

Penang is best for property investment in Malaysia

Penang has dislodged Kuala Lumpur’s Golden Tringle as the top investment choice

 

%d bloggers like this: