Robert Quok, Richest Malaysian Back Home


All ears: Bai Tian listening to Kuok during their meeting

 

PETALING JAYA: The return of billionaire Robert Kuok to Malaysia sends an important message that the Government is getting advice from highly-respected experts, a move that could instil confidence and optimism among the business community and the public, say economists.

Prof Dr Yeah Kim Leng said it was reassuring that the Government is listening to the views of a tycoon who has a thorough understanding of the history, as well as the economic and business landscapes of Malaysia and the region.

“We now know that whatever new policies or changes introduced would have been passed through or reviewed by Kuok and the panel of experts.

“We are in safe hands. We are able to secure the best advice. It is comforting and reassuring,” the Sunway University Business School economics professor said.

Kuok, 94, was named as a member of the Council of Eminent Persons (CEP) by Prime Minister Tun Dr Mahathir Mohamad to help shape policies and programmes to achieve Pakatan Harapan’s 100-day promises.

Headed by former Finance Minister Tun Daim Zainuddin, the CEP also includes former Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz, former Petronas CEO Tan Sri Hassan Marican and renowned economist Prof Jomo Kwame Sundaram.

Kuok, who resides in Hong Kong, returned to Malaysia to attend his first CEP meeting on Tuesday.

Speaking to reporters later, he urged Malaysians to trust the council.

Yesterday, a video of Kuok meeting Dr Mahathir was uploaded on Kelab Che Det’s Facebook page.

He was seen saluting Dr Mahathir, saying: “I salute you. You saved the country.”

Socio-Economic Research Centre executive director Lee Heng Guie said Kuok and the other eminent persons conveyed a message that the Government was bent on making Malaysia better, more competitive and credible.

“Kuok is a prominent and respected entrepreneur. We can tap into his vast experiences in the corporate world. This will benefit Malaysia,” he said.

Lee expected Kuok to give his fair advice to the Government on how to ensure foreign investors would pour in to place Malaysia in the top of the list for investments.

Meanwhile, on the Government’s decision to review projects approved by the previous government – of which a substantial number of projects involved Chinese private and government-linked entities – Dr Yeah said Kuok could serve as the bridge between both countries.

“Some of the mega projects will likely see a need for a third party to intervene. Kuok will be an excellent intermediary.

“Investors will be more comforted if we have a intermediary that is able to facilitate discussion or smoothen out frictions if there is any,” he said, adding that this was to ensure the ties remained strong and not derailed should there be any hard decisions that needed to be taken.

Separately, China’s ambassador to Malaysia Bai Tian met with Kuok yesterday.

In an official statement, Bai spoke highly of the 94-year-old billionaire’s contributions to the development of Malaysia and the progress of China-Malaysia relations.

“He expects that Kuok would continue to contribute to the future development of China-Malaysia cooperation,” the statement said.

During the meeting, both of them agreed that friendly cooperation between China and Malaysia is in the fundamental interests of the two countries and their people.

“They believe that, as an important country along the 21st century maritime silk road under the Belt and Road Initiative, Malaysia could further benefit from mutually-beneficial and win-win cooperation with China.

“They recall the sound development of bilateral relations during Tun Dr Mahathir Mohamad’s last service as Prime Minister, and are both confident that during the term of the new government, China-Malaysia relations will achieve greater progress,” it added. – The Star

Related: 

Robert Kuok to arrive in Malaysia next week

Robert Kuok to arrive in Malaysia next week

Related posts:

https://youtu.be/fCZj0DuDNUk Robert Kuok attends CEP meeting Najib arrives at MACC HQ to have his statement recorded …
Dr Mahathir moves swiftly to inject confidence and stability into the market WHEN the results of the 14th general election were final…

Mahathir to be sworn in as PM on May 10 https://youtu.be/zsOkQeJxojk After six decades in power, BN falls to ‘Malaysian tsuna.

https://youtu.be/ZKoNfVcq5EQ PUTRAJAYA: Newly appointed Malaysian Anti-Corruption Commission (MACC) chief commissioner Datuk Seri Mohd…

https://youtu.be/cCoO3JEKZ48 PETALING JAYA: The recent attacks against multi-billionaire Robert Kuok, including those from Umno leader..

 

Advertisements

The world’s oldest PM, Dr. Mahathir must now walk the talk


Najib and Mahathir face off in fierce Malaysian election:

 https://news.cgtn.com/news/3d3d414f33517a4d77457a6333566d54/share.html

 

WHEN I attended an election rally of Pakatan Harapan in Wangsa Maju, Kuala Lumpur, two weeks ago, I was delighted to see the Malays, Indians and Chinese clapping hands in unison when PKR’s vice-president Tian Chua promised that the coalition would look after the interests of all, regardless of race, once it came into power.

I was touched by the reactions on the ground. It was a good feeling to be among people who share similar aspirations for racial harmony and welfare for all in this multiracial country.

My son also had the same experience at a Pakatan ceramah in Hulu Kelang, Selangor, last week.

It was drizzling and he was soaked. Then a Malay man gave him a shirt to change. He came home telling me he hoped that Pakatan would win to bring back the long-lost spirit of muhibbah and unity.

The spirit of muhibbah had for a long time turned into a rare commodity because the authorities allowed political opportunists to disrupt peace with their disparaging remarks against other communities and religious groups.

Now that Pakatan has toppled the Barisan Nasional government led by Datuk Seri Najib Tun Razak in the May 9 general election, it is natural for Malaysians like me and my son to expect a better tomorrow where divisive racist politics is curbed, if not eliminated.

I look forward to the return of the good old days when the spirit of muhibbah among races prevailed.

This expectation is not unrealistic, given the emphasis to multiracialism and unity in the speeches of leaders under Pakatan led by Tun Dr Mahathir Mohamad.

The former premier, once disliked by some Chinese for his past racist rule but who appears to have repented, is now the Prime Minister.

But as Dr Mahathir, who has galvanised almost all Opposition forces against Najib for the latter’s association with the 1MDB (1Malaysia Development Bhd) controversy, is likely to play a key part in governing and “saving” the country, his policy speeches made during campaign are in focus now.

While Dr Mahathir has promised to get rid of corruption in government and Felda, he has also pledged to remove the 6% Goods and Services Tax (GST) and reintroduce fuel subsidies – two issues that have impacted the lower-income group negatively.

But if GST is removed and fuel subsidies are reinstated, Dr Mahathir’s government will have to implement measures to ensure that Malaysia’s fiscal position will not be undermined by populist moves.

With the prices of oil and gas returning to a four-year high, the impact on government finance may be cushioned slightly this year. But for the longer term, sustainability is in doubt.

Indeed, international rating agency Moody’s cautioned yesterday that these campaign promises, if implemented without any other adjustments, would be “credit negative for Malaysia’s sovereign”.

A downgrade in sovereign rating will have a negative impact on the ringgit, interest rates and ranking of our bonds.

It may also affect foreign portfolio investments.

But as Dr Mahathir is a deft hand at crisis management, having led the country out of the 1986 recession and 1998 Asian financial and local political crisis, he should have the wits to forestall any fiscal shortfall.

With many businessmen and economists silently supporting Pakatan, there should be no shortage of talent to help him manage the economy.

These skilled people may emerge in the open soon.

What worries businessmen and economists most is the doctor’s pledge that China investments in Malaysia would be reviewed, and terminated if there were unfair terms in current contracts.

But as Selangor and Penang have attracted substantial direct investments from China, PKR’s Datuk Seri Azmin Ali and DAP’s Lim Guan Eng could present an objective and clearer picture of Chinese investments to Dr Mahathir.

While it is difficult to revoke the East Coast Rail Link (ECRL) due to the vast economic benefits it can bring to the country and the favourable terms in loan repayment, it is easier for Malaysia to delay the implementation of the Kuala Lumpur-Singapore high-speed rail project or stop China from getting the contract.

But before doing anything drastic to cut down national debt, government lawyers have a duty to advise the chief commander on paying vast compensation for breach of contract. As China views Malaysia as a strategic location in its ambitious Belt and Road Initiative, Beijing has been following the political developments closely.

But to be sure, Dr Mahathir was a business-friendly leader when he was the Prime Minister, the first time around.

He was responsible for allowing direct trade between Malaysia and China in the late 1980s, which led to China becoming our largest trading partner. Hence, he is not expected to make policies detrimental to the economy.

One question many people are asking now is: will Malaysia become more democratic under Pakatan rule?

From the campaign speeches made by the coalition’s strategists and Dr Mahathir, this appears to be so – at least for the foreseeable future.

Two PKR vice-presidents, Rafizi Ramli and Tian Chua, have told voters that if one day Pakatan becomes corrupt, the people should vote the coalition out – just like how they brought Najib down.

What Pakatan wants to see is a two- or three-party political system where people have a choice to pick the best among the contenders.

Since Malaysians have boldly voted out Barisan that ruled for over six decades, there is no reason why Pakatan cannot be toppled if it is corrupted by power and greed.

In the campaign speeches, Dr Mahathir promised that he would pass the baton to Datuk Seri Anwar Ibrahim, who will be released from jail next month.

Will he keep this promise after assuming the powerful post?

The logical answer is he will. At 93, his health may not permit him to carry on with this high-pressured job.

It will also be politically unwise for him to stay beyond his welcome, as Anwar had ori­ginally been the choice of the coalition before Dr Mahathir came into the picture.

Many have high expectations of Anwar, who has the experience of an acting premier, deputy premier and finance minister before he was sacked from the Cabinet in 1998 by Dr Mahathir.

Having survived bitter political battles and endured imprisonments under Dr Mahathir and Najib from 1998 until now, Anwar should understand the people’s needs better and rule with a multiracial outlook.- by Ho Wah Foon The Star

Related:

Why Malaysia’s opposition coalition won the election 

 

 


By The Star Says

Joceline Tan

By Joceline Tan

 

In the spotlight: Many shed tears of joy when Dr Mahathir was sworn in as the seventh Prime Minister.Old PM heralds hope for new corporate culture

MALAYSIA’S poor handling of public finances is a subject matter that has very often lit controversy. It is not only during the Datuk Seri Najib Tun Razak government but stretches back to the days of our new ‘old’ Prime Minister, Tun Dr Mahathir Mohamad.

Related posts:

Mahathir to be sworn in as PM on May 10 2018. After six decades in power, BN falls to ‘Malaysian tsuna…

Youth unemployment hit record high in 2017: MIDF Research


Young and jobless | Invest Cyberjaya

Graduate unemployment was 45.5 of overall jobless amid skills mismatch and demand for low-skilled jobs, says MIDF Research

PETALING JAYA: Youth unemployment was at its highest ever at 10.8% in 2017, of which graduate unemployment constituted about 40.5% or 204,000 of total unemployment due to skills mismatch amid a backdrop where demand for low-skill jobs continues to reign – which in turn may leave the government falling short of its 35% skilled workforce target by 2020, according to MIDF Research.

For every 100 jobs available, there are 76 jobs for elementary occupations and 10 jobs for plant and machinery operators and assemblers, which leaves 14 jobs for the high-skill and other low-skill occupations.

About 86.3% of job vacancies in 2017 were for low-skill jobs which was deemed less suitable for a fresh graduate while high-skill jobs such as professional, technicians and associate professionals, comprised 4.1% of the total job vacancies.

It noted that the high single- and double-digit unemployment rate among youth, defined as those between 15 and 24 years old, as being normal not only in Malaysia, but in Europe, the US and South Korea.

The high youth unemployment rate was mainly contributed by soaring graduate unemployment, despite the steady increase in tertiary-educated workers joining the workforce, which was also the fastest growing segment at 4.1%, followed by secondary at 3.2% and no formal education by 0.3%.

Employment share of professionals and technicians and associate professionals improved to 12.2% and 10.5% in 2017 expanding at 0.8% and 4.6% respectively.

“In terms of share, the rising stake of skilled-worker or tertiary-educated is in line with the Eleventh Malaysia Plan. Under the plan, the government estimated skilled-worker to total workforce ratio to touch 35% by 2020. Nevertheless, we view the ratio is not expected to reach the target at the current pace,” MIDF Research said.

“We forecast the skilled-worker ratio to register at 32% by 2020. Continuous improvement in production efficiency, resource allocations and better technology adoptions under the Industry 4.0 will facilitate and accelerate the productivity level in Malaysia in the long run,” it added.

The overall unemployment rate in the country remained low at 3.4% last year.

Malacca remains as the state with the lowest youth unemployment rate for the seventh consecutive year at 2.9% while Sabah recorded the highest at 13.5% in 2017.

Meanwhile, Selangor the largest employer, 23.2% of total national employment saw overall unemployment rate of 2.8% and youth unemployment rate of 9.4% last year.

The overall youth unemployment rate across all states registered poor performances compared with the previous year, 2016.

In 2018, the youth unemployment rate is expected to fall slightly to 9.9% and the overall unemployment rate to stand at 3.3%.

The job market outlook for commodity-based sectors is expected to improve in tandem with recovering commodity prices. This in line with anticipation of improvement in global trade, and higher demand for export products is expected to benefit industries such as electrical & electronics and mining.- sunbiz@thesundaily.com
Related:

Youth unemployment rate still high | The Edge Markets

 

S. Korea’s youth jobless rate hits record high, with those unemployed …

Youth Unemployment Soars Despite Gov’t Efforts – The Chosun Ilbo …

Rising unemployment among university graduates worrying …

[PDF]Youth Unemployment Rate Remain High – MIDF

May 9, 2017 – Based on the latest developments in global and domestic economies, we anticipate youth unemployment rate to slightly fall to 10.1% while overall unemployment rate to stand at 3.3% in 2017. Youth unemployment rate hits 10.5% with number of unemployed youth reached 273,400 persons in 2016. Youth …

 

Youths told not to be too dependent on govt for jobs – BorneoPost Online

 

Related posts:

 

Job drive woos Bentong youths home – Nation 

 Malaysia’s low wages: low-skilled, low productivity,  low quality, reliance on cheap foreigner workders…


 

People-centric logo: The Chinese character

for ‘people’, rén, dominates the entrance to its office. The
growing usage of technolog…

 

 

Malaysia needs structural reforms says global investor 

Arrest decline in productivity and competitiveness in Malaysia

Corruptions, Conflict of interests, politicians and Malaysian bloated civil service 

Structural issues including education are holding Malaysia back

Huge Civil Service Size, Attractive Emoluments and Benefits are costing Malaysia ! 

Prized job: While long-term security like the pension scheme free healthcare and easy loans have been among the perks of joining the .
..

Bloated civil sevice in Malaysia must cut down the size and salaries 

Call on the Government to downsize the country’s bloated civil service

Ministers may face conflict of interest, says Tunku Abdul Aziz:  “If you have no power, you cannot abuse it. Civil servants hav…

Supersized and overweight civil servants

Apr 6, 2016 So if both the US and Malaysian Governments couldn’t stem the fat tide in their
respective countries, who can? … Putrajaya the obese-city!

What parents need to know about VR ?


The hottest tech in videogames is virtual reality. Find out its potential effects on kids before buying a headset.

 

VR can make you think and feel things you know aren’t real. —Dreamstime/TNS
EVERYONE who’s tried it agrees: virtual reality is mind-blowing. Once you strap on that headset, you truly believe you’re strolling on a Parisian street, careening on a roller coaster, or immersed in the human body exploring the inner workings of the oesophagus.

But for all its coolness – and its potential uses, from education to medicine – not a lot is known about how VR affects kids. Common sense Media’s new report, Virtual Reality 101: What You Need to Know About Kids and VR, co-authored by the founding director of stanford University’s virtual Human Interaction Lab, offers a first-of-its-kind overview of the expanding uses for the technology and its potential effects on kids.

Now that VR devices from inexpensive viewers to game consoles to full-scale gaming arcades are finally here – with lots more coming soon – it’s a good idea to start thinking about how to manage VR when it comes knocking at your door.

VR can make you think and feel things you know aren’t real. Other media can give you the sense of “being there” – what’s called psychological presence – but not to the extent that VR can. This unique ability is what makes it so important to understand more about the short- and long-term effects of the technology on kids. Here are some of the key findings from the report.

Even though we don’t yet have all the answers to how vR affects kids, we know enough to consider some pros and cons. And whether kids are using vR through a mobile device like Google Cardboard, on a console like the Playstation vR, on a fully tricked-out desktop rig like the Oculus Rift, or at a mall arcade, these guidelines can help you keep any vR experience your kids have safe and fun.

Pay attention to age ratings. Check the recommended age on the headset package and don’t let younger kids use products designed for older kids. The minimum age isn’t based on medical proof of adverse effects on the brain and vision, but it’s the manufacturer’s best guess as to who the product is safest for.

Choose games wisely. Because the vR game experience can be more intense than that of regular games, it’s even more important to check reviews to make sure the gameplay, the content and the subject matter are appropriate for your kid.

Keep it safe. A few precautions: Once you have the goggles on, orient yourself to the room by touching the walls; stick to short sessions until you know how you’re affected by vR; stay seated if possible; move furniture out of the way; and have a second person as a spotter.

Pay attention to feelings – both physical and emotional. If you’re feeling sick to your stomach, dizzy, drained, or sad, angry, or anxious – give it a rest for a while.

Talk about experiences. since vR feels so real, it’s an excellent time to talk through what your kid has experienced in a game. Ask what it felt like, what the differences are between vR and regular games, and how vR helps you connect to other people’s experiences by putting you in someone else’s shoes.

Find opportunities; avoid pitfalls. Don’t let your kids play vR games that mimic experiences you wouldn’t want them to have in real life, such as using violent weapons. On the other hand, take advantage of vR that exposes kids to things they wouldn’t normally get to see, feel, and learn, such as visiting a foreign country.

Keep privacy in mind. Devices that can track your movements – including eye movements – could store that data for purposes that haven’t yet been invented. — Common sense Media/Tribune news service.

Star2 Technology  by Caroline Knorr

Malaysia’s low wages: low-skilled, low productivity, low quality, reliance on cheap foreign workers! Need to manage!


Survey: Most workers not paid enough to achieve minimum acceptable living standard

 

Wages too low, says Bank Negara – Survey: most workers not paid enough to achieve minimum acceptable living standard

ALTHOUGH the income levels of Malaysians have increased significantly over the years, voices of discontent are mounting over the decline in purchasing power.

Low and depressed salaries are among the grouses of executives and non-executives amid the apparent lifestyle changes of Malaysians.

With the rising cost of living, they lament that there is now less room for long-term savings and investments.

According to the Employees Job Happiness Index 2017 survey by JobStreet.com, one in three Malaysian employees want a pay rise, with rewards constituting 52% of the domestic workforce’s motivation to work.

In its 2017 Annual Report, Bank Negara points out that the expenditure of the bottom 40% (B40) of Malaysian households has expanded at a faster pace compared with their income.

From 2014 to 2016, the average B40 income level grew by 5.8% annually, marginally lower than the 6% growth in the B40 household spending in the same period.

It is also worth noting that half of working Malaysians only earned less than the national median of RM1,703 in 2016.

The central bank, in consideration of the low-wage conundrum, has recently recommended that employers use a “living wage” as a guideline to compensate their employees for their labour.

Essentially, the living wage refers to the income level needed to achieve a minimum acceptable standard of living, depending on the geographical location.

Citing Kuala Lumpur as an example, Bank Negara estimates that the living wage in the city two years ago was about RM2,700 for a single adult. The living wage estimate for a couple without a child was RM4,500, while for a couple with two children, the living wage was RM6,500.

As much as Malaysians support higher wages, which can outgrow escalating living cost, the bigger question is whether their employers are willing to increase wages significantly.

Also, is it realistic for employers to pay higher salaries in line with the suggested living wage?

Speaking to StarBizWeek, Malaysian Employers Federation (MEF) executive director Datuk Shamsuddin Bardan says that the living wage is unsuitable for adoption in Malaysia – for now.

He believes that the living wage will turn out to be damaging to the domestic labour market, given the rising cost of doing business in recent times.

Shamsuddin: While employers in Malaysia are more than happy to compensate workers for their work, people must also understand that they are bogged down by escalating costs. << Shamsuddin: While employers in Malaysia are more than happy to compensate workers for their work, people must also understand that they are bogged down by escalating costs.
Shamsuddin: While employers in Malaysia are more than happy to compensate workers for their work, people must also understand that they are bogged down by escalating costs.

“The living wage concept is unrealistic in Malaysia for the time being. While employers in Malaysia are more than happy to compensate workers for their work, people must also understand that they are bogged down by escalating costs.

“However, if the workers are proactive and upskill themselves to increase their productivity, then I do not see any reason for employers to refrain from offering higher pay packages.

“The Government on its part, should not micro-manage the economy to the extent of telling the employers how much to pay their workers. Instead, the Government can provide various incentives to the employers to bring down costs, which will translate into higher salaries or even exempt the employees’ bonuses from tax,” he says.

Socio Economic Research Centre executive director Lee Heng Guie welcomes Bank Negara’s living wage guideline “to prevent a wage employee from the deprivation of a decent standard of living”.

In order to push for the acceptance of a living wage in Malaysia, Lee recommends that government-linked companies (GLCs) adopt the concept gradually.

“The enforcement of commitments toward the living wage is a complex and costly issue, and more importantly, should be paid voluntarily by the employers.

“This would require extensive consultations and engagements with the stakeholders.

“Perhaps, as one of the largest employers in the country, GLCs can incorporate the living wage clause in their suppliers’ procurement contracts,” he says.

Concerns about Malaysia’s low-wage environment are not only centred on the low-skilled workers but across-the-board, as even executives lament about being lowly-compensated.

Are Malaysians being paid enough?

Based on data from the Statistics Department’s Salaries and Wages Survey Report 2016, most Malaysian workers are still paid significantly lower than the desired amount to achieve “minimum acceptable living standard”, at least in Kuala Lumpur.

Nearly 50% of working adults in Kuala Lumpur earned less than RM2,500 per month in 2016, notably lower than the RM2,700 living wage as suggested by Bank Negara.

In fact, up to 27% of households in Kuala Lumpur earned below the estimated living wage in 2016.

While wage growth has exceeded inflation over the years, real wage growth has been largely subtle. Real wage refers to income adjusted for inflation.

According to the MEF’s website, the salaries of executives were expected to grow by 5.55% in 2017, compared with 6.31% in 2013. As for non-executives, the average salary was anticipated to increase by 5.44% in 2017, down from 6.78% in 2013.

Given the 3.7% headline inflation registered in 2017, executives’ salaries may have just inched up by 1.85% on average, after factoring in inflation.

As for non-executives, their real wage could have grown by 1.74%, lesser than the executives in Malaysia.

While a slight moderation in headline inflation is expected this year, the purchasing power of Malaysians is unlikely to improve significantly.

In an earlier report by StarBiz, Shamsuddin described 2018 as a “bad year for employees and employers”, and projected Malaysians’ average salary increment to be lower than last year.

He blamed several new policies and measures introduced by the government such as the mandatory requirement for employers to defray levy for their foreign workers and the introduction of the Employment Insurance System, which would increase the costs borne by domestic businesses.

“It will be difficult for employers to raise salaries after this, given such dampeners,” he was reported as saying.

The biggest challenge now is to strike a balance between the market’s ability to compensate a worker and the worker’s required income level to achieve a minimum acceptable standard of living.

Sunway University Business School professor of economics Yeah Kim Leng says that more efforts have to be made to enhance the business and investment climate, in order to entice existing firms to expand and upgrade while new firms and start-ups emerge to create more high-paying jobs.

Yeah: A good quality and inclusive education system coupled with sound economic policies and effective implementation have enabled the two countries to sustain growth. << Yeah: A good quality and inclusive education system coupled with sound economic policies and effective implementation have enabled the two countries to sustain growth.
Yeah: A good quality and inclusive education system coupled with sound economic policies and effective implementation have enabled the two countries to sustain growth
.

He also calls upon business owners and employees to forge appropriate wage-setting mechanisms, which are benchmarked against the productivity of the workers.

“The Government should consider additional fiscal incentives for firms that provide worker benefits to meet the living wage standard. For example, double tax deduction for transport allowance and other cost of living adjustments for the lower-salaried employees,” states Yeah.

Meanwhile, Lee opines that employees should be given a higher share of the profit generated by their employers moving forward, in line with the practice in many high-income nations abroad.
 

“It is actually reasonable for Malaysian employers to allocate a larger chunk of their profits to reward their workers and motivate them,” he says. 

In 2016, the compensation of employees to gross domestic product (CE-to-GDP) ratio in Malaysia improved to 35.3%. The CE-to-GDP ratio shows the workers’ share in the profits made by business owners.

For every RM1 generated in 2016, 35.3 sen was paid to the employee and 59.5 sen went to corporate earnings, while five sen was given to the government in the form of taxes.

In its 11th Malaysia Plan, the Government aspires to increase the CE-to-GDP ratio substantially to 40%, from 34% in 2013.

While Malaysia’s CE-to-GDP ratio has continued to improve over the years, it is notably lower than several other high and middle-income countries.

The 11th Malaysia Plan document stated that the country’s CE-to-GDP ratio was lower than Australia (47.8%), South Korea (43.2%) and even South Africa (45.9%).

In an earlier media report, however, Malaysian Institute of Economic Research executive director Zakariah Abdul Rashid hinted that Malaysia was unlikely to reach its CE-to-GDP ratio target by 2020.

This was mainly as a result of Malaysia’s lower-than-expected productivity growth.


Low-wage conundrum

 According to Bank Negara, the main underlying cause of Malaysia’s low-wage environment is the high numbers of cheap foreign workers.

Governor Tan Sri Muhammad Ibrahim says that the country should cut back on its foreign worker dependency to drive higher wages for Malaysians across-the-board.

“In Malaysia, our salaries and wages are low, as half of the working Malaysians earn less than RM1,700 per month and the average starting salary of a diploma graduate is only about RM350 above the minimum wage.

“It is high time to reform our labour market by creating high-quality, good-paying jobs for Malaysians,” he says.

Echoing a similar stance, Yeah says that the continuing reliance on foreign workers has resulted in a predominantly low wage-low productivity-low value economy, with many features of a middle-income trap.

“On one end of the wage-skill spectrum, the low-skilled jobs are being substituted by easy availability of unskilled foreign workers, thereby keeping the blue-collar wages from rising.

“At the other end, skilled job wages are being depressed by insufficient high-wage job creation, weak firm profitability amid rising market competition and excess capacity, industry consolidations and other factors resulting in a slack labour market,” he says.

Lee: The enforcement of commitments toward the living wage is a complex and costly issue, and more importantly, should be paid voluntarily by the employers. << Lee: The enforcement of commitments toward the living wage is a complex and costly issue, and more importantly, should be paid voluntarily by the employers.
Lee: The enforcement of commitments toward the living wage is a complex and costly issue, and more importantly, should be paid voluntarily by the employers.

It is worth noting that the share of high-skilled jobs has reduced to 37% in the period from 2011 to 2017, as compared to 45% from 2002 to 2010.

Malaysia has come a long way since its independence, transforming itself from a largely rural agragrian country to a regional economic powerhouse, which is driven by its strong services and manufacturing sectors.


While industrialisation and automation have grown robustly since the 1990s, economists feel that the country has not managed to substantially move up the value chain compared with other countries such as Singapore.

The lack of a high-skilled workforce, low productivity, employment opportunities to cater to high-skilled professionals and the presence of cheap foreign workers have all weighed down on the Malaysian economy, particularly the income levels of Malaysians.

Citing the examples of Singapore and Australia, which are successful in raising wages historically, Yeah says that structural reforms should be undertaken in Malaysia to reverse the low-wage conundrum.

“A good quality and inclusive education system coupled with sound economic policies and effective implementation have enabled the two countries to sustain growth, raise productivity and wages and shift to higher-value activities,” he says.

Sources: by Ganeshwaran Kana, The Star

Economist: Manage labour issues to achieve high-income economy

Cheap manpower: While Malaysia has clearly
benefitted from the presence of foreign workers, the role that foreign
workers play in the Malaysian economy must keep up with the times.

WHY are wages still low in Malaysia?

Well, there are six words to describe the main reason for this – “high dependence on low-skilled foreign workers”.

The issue of Malaysia’s huge reliance on low-skilled foreign labour has been raised time and again, but only moderate progress has been made in alleviating the situation.

Low-skilled foreign labour remains a prevalent feature of Malaysia’s economy, and according to Bank Negara, it is a major factor suppressing local wages and impeding the country’s progress towards a high-productivity nation.

As the central bank governor Tan Sri Muhammad Ibrahim puts it, Malaysia is currently weighed down by a low-wage, low-productivity trap, with the contributing factor being the prolonged reliance on low-skilled foreign workers.

While their existence may benefit individual firms in the short term, they could impose high macroeconomic costs to the economy over the longer term.

“Easy availability of cheap low-skilled foreign workers blunts the need for productivity improvement and automation. Employers keep wages low to maintain margins,” Muhammad says.

“Unfortunately, this depresses wages for local workers. The hiring of low-skilled foreign workers also promotes the creation of low-skilled jobs,” he adds.

From 2011 to 2017, the share of low-skilled jobs in Malaysia increased significantly to 16%, compared with only 8% in the period of 2002 to 2010. Apart from that, local economic sectors that rely on foreign workers such as agriculture, construction and manufacturing also suffer from low productivity.

Nevertheless, it is an undeniable fact that foreign workers do contribute somewhat to Malaysia’s economic growth.

The World Bank, in its study about three years ago noted that immigrant labour both high and low-skilled, continued to play a crucial role in Malaysia’s economic development, and would still be needed for the country to achieve high-income status by 2020.

The global institution’s econometric modeling suggested that a 10% net increase in low-skilled foreign workers could increase Malaysia’s gross domestic product (GDP) by as much as 1.1%. For every 10 new immigrant workers in a given state and sector, up to five new jobs may be created for Malaysians in that state and sector, it said.

Even so, the World Bank acknowledged that the influx of foreign labour did have a negative impact on the wages of some groups.

Its study found a 10% increase in immigration flow would reduce wages of the least-educated Malaysians, which represents 14% of the total labour force, by 0.74%. Overall, a 10% increase in immigration flow would slightly increase the wages of Malaysians by 0.14%.

According to Muhammad, while some argue that foreign employment creates economic activities, which consequently create jobs for local employment, it is neither the most efficient nor the desired route to create more mid-to-high-skilled jobs.

“Compared with local employment, foreign workers repatriate a large share of their incomes, which limits the spillover or multiplier effect on the domestic economy,” he explains.

Total outward remittances in 2017 stood at RM35.3bil, of which the bulk was accounted for by foreign workers.

In addition, Muhammad says high dependence on low-skilled foreign workers will also have an adverse effect of shaping Malaysia’s reputation as a low-skilled, labour-intensive destination.

Bank Negara says while Malaysia has clearly benefitted from the presence of foreign workers, the role that foreign workers play in the Malaysian economy must keep up with the times.

The central bank believes critical reforms to the country’s labour market are very much within its reach, and it should continue to gradually wean its dependence on foreign workers.

Malaysia should seize the opportunity now to set itself on a more productive, sophisticated and sustainable economic growth path, it says.

According to Muhammad, cutting back on foreign worker dependency can help to drive higher wages for Malaysians across-the-board.

The Government’s efforts in reducing the country’s dependency on low-skilled foreign workers have been ongoing since the implementation of the 8th Malaysia Plan (2001-2005), with greater clarity and a renewed focus to resolve the issue at hand upon the implementation of the 11th Malaysia Plan.

This has resulted in the steady decline in the share of documented foreign workers from 16.1% in 2013 to 12.0% of the labour force in 2017.

More can be done to build on the progress made, Bank Negara says, while proposing a five-pronged approach to managing foreign workers in Malaysia.

Firstly, it says, there must be a clear stance on the role of low-skilled foreign workers in Malaysia’s economic narrative. Secondly, policy implementation and changes must be gradual and clearly communicated to the industry.

Thirdly, existing demand-management tools (such as quotas, dependency ceilings and levies) can be reformed to be more market-driven, while incentivising the outcomes that are in line with Malaysia’s economic objectives.

Fourthly, there is room to ensure better treatment of foreign workers, be it improvements in working conditions or ensuring that foreign workers are paid as agreed. Lastly, it is also important to note that the proposed reforms must be complemented with effective monitoring and enforcement on the ground, particularly with respect to undocumented foreign workers.

An economist tells StarBizWeek that addressing the high reliance on foreign workers is pertinent for Malaysia’s transition into a high-income economy.

“Malaysia needs to shift its focus from importing cheap labour to managing labour flow that can maximise growth and facilitate its structural adjustment towards a higher income economy,” he says.

“It has been far too long for our economy to be swamped with foreign workers who are unskilled, or have low skill sets that could not contribute meaningfully to Malaysia’s aspiration of becoming a high-income economy,” he adds.

By Cecilia Kok, The Star

Related:

‘Urgent need for coordinated action’ – TheWorldNews.net

 

Bank Negara refutes report on living wage – Business News

 

Related posts:

Malaysia needs structural reforms says global investor 

Arrest decline in productivity and competitiveness in Malaysia

Corruptions, Conflict of interests, politicians and Malaysian bloated civil service 

Structural issues including education are holding Malaysia back

Huge Civil Service Size, Attractive Emoluments and Benefits are costing Malaysia ! 

Prized job: While long-term security like the pension scheme free healthcare and easy loans have been among the perks of joining the …

Bloated civil sevice in Malaysia must cut down the size and salaries 

Call on the Government to downsize the country’s bloated civil service

Ministers may face conflict of interest, says Tunku Abdul Aziz:  “If you have no power, you cannot abuse it. Civil servants hav…

Supersized and overweight civil servants

Apr 6, 2016 So if both the US and Malaysian Governments couldn’t stem the fat tide in their respective countries, who can? … Putrajaya the obese-city!

Tycoon Robert Kuok stands tall amid the bashings from Umno leaders


Well-regarded: Kuok in his office in Hong Kong. Picture taken from ‘Robert Kuok: A Memoir’.

 

DURING the two week-Chinese New Year celebrations, with the tossing of yee sang for better times ahead, the key topic of conversation among the Chinese revolved around the general election.

But the sudden eruption of high-level political attacks on Robert Kuok last weekend sent shockwaves through the community. Since then, the richest man in Malaysia has been the talk of the town.

The onslaught could not be taken lightly as Kuok is not just any ordinary businessman but someone of stature held in high esteem not only in Malaysia and China, but also by the global Chinese community.

It is a known fact that Kuok helped to lay the groundwork for the end of communist insurgency in Malaysia, played a role in easing racial tension after the May 13 racial riots and contributed funds to Umno and MCA during elections.

His generous donations have benefited the poor and rich.

Kuok has always stood tall among everyone.

Dubbed the “Sugar King of Asia”, Kuok has set up a huge international empire with businesses spanning from commodity trading to hotels, sugar and oil palm plantations, wheat flour milling, property development and entertainment.

In Malaysia, he retains control of Shangri-La Hotels and the wheat flour business after selling his sugar and property businesses.

Hence, the Chinese community here feels hurt to see their business icon being smeared based on hearsay. They see grave injustice done to this man whose loyalty and commitment to the country is being questioned.

However, due to suspicion that the whole episode could be a politically driven scheme ahead of GE14 for various reasons, Chinese community leaders only spoke up after Kuok defended himself.

While many are aware that Kuok’s recent memoir had irked some quarters due to his disdain for the New Economic Policy (1971-90), they are perplexed by the timing of this smear campaign.

Kuok’s political revelations in his book have also earned him brickbats from some people.

This round, the criticisms against the tycoon were based on three articles posted by blogger Raja Petra Kamaruddin on the online portal Malaysia Today.

The most startling allegation made by the controversial blogger, who has a record of stirring up racial hatred towards local Chinese in past writings, was that Kuok had donated hundreds of millions to the DAP in a bid to overthrow the Umno-led government.

Without verifying the content, Malay critics and senior Umno politicians told Kuok to be grateful to the Government as the tycoon had built his early sugar, rice and flour empire based on his good ties with Umno leaders.

The remarks by Tourism and Culture Minister Datuk Seri Nazri Aziz were particularly scathing, as crude and offensive words were used. In addition, he told Kuok to surrender his citizenship.

The critics might have misconstrued earlier statements by Datuk Seri Najib Tun Razak, who had said that some of the richest people, including Kuok, owed their success to opportunities created through government policies.

“If we look at the list of names of the richest people in Malaysia, such as Robert Kuok, who gave him the key to become the rice and sugar king? It was given to him by the ruling government,” said the Prime Minister at an event in Selangor on Feb 24.

“Yes, he is driven, hardworking, industrious and disciplined – but that is not enough. Everyone still needs the key to creating these opportunities,” he added.

Although DAP leaders promptly denied receiving money from Kuok, this failed to stop the tirade of aspersions cast against Kuok.

It was obvious that Kuok had to defend himself. He issued a statement last Monday, saying all allegations against him were “untrue, unjustified and amounted to libel”.

The 94-year-old Kuok, who moved his business headquarters from Kuala Lumpur to Hong Kong in 1975, denied funding The Malaysian Insight portal or opposition parties to overthrow the Government.

He also denied that he was anti-government, a racist or a Chinese chauvinist.

While Kuok’s hint of instituting libel suits might have some deterrent effect, the proposal by MCA president Datuk Seri Liow Tiong Lai to the Prime Minister to intervene in the matter could have shut the mouths of Umno leaders.

Liow tweeted: “I have conveyed the feelings of the Chinese community to the PM. We hope that the PM will intervene to put this issue to rest. Mr Kuok has contributed greatly towards the development of the nation.”

If the vicious attacks on Kuok were allowed to continue, the first casualty in GE14 could be MCA and Gerakan, and ultimately Barisan Nasional, as angry Chinese could be provoked to vote against the coalition in GE14.

And the unintended winner from this latest episode could be the opposition side.

The question now is: Faced with so many challenges in the coming polls, could Barisan afford to sow a new seed of discontent and allow it to germinate unchecked?

The Prime Minister’s Office issued a statement, saying Kuok’s success is “an inspiration” for other entrepreneurs.

Though this brief statement and its “cooling effect” came a bit late in the political sense, it was better than nothing.

In addition, a tribute to Kuok posted by Najib’s brother Datuk Seri Nazir Razak on Instagram is also a comfort to the Chinese.

“I may not agree with all his views but he (Kuok) is a patriot, the icon of Malaysian business and a first-class gentleman,” said Nazir, the chairman of CIMB Group Holdings Bhd last Wednesday.

However, the injustice done to Kuok on such a scale is unlikely to be forgotten soon, as this incident has also stirred up some debates.

Is there any hidden political agenda to vilify Kuok before GE14? Do successful businessmen owe their allegiance to ruling political parties? Is it morally wrong to change your political stand?

Dr Oh Ei Sun, former political secretary of Najib, offers some explanations to Sunday Star: “Robert Kuok has shown his contempt for the NEP in his book. This may be seen as questioning Malay supremacy and this attitude must be nipped in the bud.”

He adds that Kuok may not be forgiven for stating the obvious, which many Chinese have wanted to voice out but could not for fear of losing business opportunities.

In his memoir, Kuok stated that although the Chinese have played a significant role in the economic development of Malaysia and other South-East Asian nations, many did not receive just and fair treatment.

Sin Chew Daily, quoting unnamed Barisan sources, says the bashing of Kuok also carried a warning message to the business community to think twice before they contribute election funds to opposition parties.

“These attacks also sent a message to the Malay community that they must be united to support Umno, which is being ditched by others it has helped to prosper,” said the Sin Chew report last Thursday.

Although a life member of the MCA, businessman Tan Sri Lee Kim Yew believes people owe no loyalty to political parties.

He tells Sunday Star: “A businessman is expected to be loyal to his country, not to ruling parties. Politicians and political parties come and go.

“Whoever becomes the government has a duty to create a conducive environment for the people to prosper and live harmoniously. If politicians are not worthy of support, people are free to switch their political stand in a democracy.”

Apart from ordinary people, the business community is also watching developments linked to Kuok with concern.

“If the issue on Robert Kuok is not handled properly, there will be a negative impact on the sentiment of investors. We are all following these developments,” says a businessman at a CNY dinner.

by Ho Wah Foon, The Star

Related Posts:

https://youtu.be/cCoO3JEKZ48 PETALING JAYA: The recent attacks against multi-billionaire Robert Kuok, including those from Umno leader..

Singing and dancing to world domination


 

 

This year’s CCTV Spring Festival Gala shows off China’s power, both soft and hard.


China now intends to lead the world in just about everything.”

BY the end of the show, there was no doubt left in my mind that China is ready for world domination.

This was the CCTV Spring Festival Gala, an immensely popular national event by China Central Television that is telecast live on the eve of Chinese New Year. I watched a day later on YouTube.

The gala, which started in 1983, has all the elements of a variety show with lots of singing, dancing, acrobatics and comedy skits. This year’s edition followed the same mix and ran for more than five hours.

Thanks to livestreaming, for the first time, it hit an all-time high worldwide viewership of a billion people, according to China Global Television Network (CGTN), CCTV’s international arm.

The gala is therefore an extremely important platform for China to present itself at its best. Clearly, a great deal of planning, with no expenses spared, went into the production that showcased Chinese creativity and culture, as well as the country’s military might and technological advancements.

The result: an awesome spectacle that would have put the 2008 Beijing Games opening ceremony in the shade.

Most of the action was in CCTV’s auditorium in Beijing supported by performances staged in four provinces: Guizhou, Guangdong, Shandong and Hainan.

These four stages were outdoor and unique. Guizhou, one of China’s most diverse provinces, showed off its minority groups like the Miao and Hmong in their elaborate traditional costumes in a hi-tech setting.

The Guangdong show took place on a section of the magnificent Hong Kong-Zhuhai-Macau Bridge, the world’s longest sea bridge that is slated for opening the middle of this year.

Shandong, the birthplace of Confucius and Taoism, chose a citadel-like building as its backdrop. Finally, Hainan, famed for hosting several Miss World pageants, presented itself as a balmy tropical paradise.

Apart from the skits, which seemed very 1970s but obviously still very popular with the audience, the other acts were extremely elaborate and performed by what seemed like a million people, who danced in perfect precision, sang in total harmony, aided by dazzling use of LED screens and special effects.

In keeping with the joyous occasion, the venues were so brightly multi-coloured and busy, it was almost eye-watering. There was never a dull moment.

I couldn’t help comparing the show to the dance and acrobatic performances from the 1980s. That was when China started opening up and sending out performing troupes in cheap tracksuits and canvas shoes who excelled in contortions, twirling plates and bowls, balancing on ladders and chairs, and creating formations on a single bicycle in motion.

The performers were certainly well-trained and competent, but they hardly smiled and came across as rather soulless and robotic.

Well, how things have changed. The Chinese people are no longer poor, suppressed and grim. That’s long gone.

When it comes to national pride, the Chinese are beating out the Americans, who made flag and country a Hollywood staple.

When you have the likes of Jackie Chan singing a patriotic song about Chung-kuo, backed by a whole pride of stylishly clad smiling young people and footage of gorgeous scenery, modern cities and wind tur­bines, it sure does make the heart beat faster.

Over the Guangdong bridge, drones and acrobatic planes weaved magic in the night sky, while off Hainan, a flotilla of boats lit up the waters.

And when it comes to culture and heritage, China has it in spades, from Chinese opera to kung fu and wushu to traditional dances and songs.

A jaw-dropping performance featured a huge ensemble of women dressed as bodhisattvas moving in unison so fluidly they were like one body; their entire performance made more mesmerising by the play of lighting that changed their costumes from yellow, to white to fuchsia.

One of my favourite acts was singer Jay Chou performing with a blend of virtual reality magic that was beautifully choreographed and synchronised with his movements.

I was also happy that among the foreign guest artistes was my dear boy from Kazakhstan, singer extraordinaire Dimash, whom I wrote about in my April 19, 2017, column which brought me the most number of e-mails from around the world.

What I liked about this year’s gala was its restrained presentation of China’s armed forces. Usually, the stage is filled with uniformed military personnel doing formations or singing a martial song.

This time, it was a more arty performance and China’s military might subtly conveyed by a strongman doing incredible handstands.

As with previous galas, the meaning of Chinese New Year was beautifully conveyed in a heart-tugging video of people returning for and preparing for the reunion dinner that brought home the importance of family and traditions.

Except for one misstep – a dreadful segment that tried to showcase Sino-African relations that critics have savaged as “a racist blackface” skit – CCTV Spring Festival Gala 2018 was a truly spectacular show that fuelled nationalistic pride among China’s citizens and left the rest of the world gobsmacked. It paid homage to the nation’s rich past, revelled in a confident present and announced an ambitious future.

I shut down my PC at almost 4am and as I lay me down to sleep, I recalled what I wrote in a commentary in June 2016 in which I described China as a shy superpower that actually tried to pretend it wasn’t one.

Not anymore. On Oct 18 last year, President Xi Jinping announced at the 19th National Communist Party Congress that China now intends to lead the world in just about everything, be it military presence, economic and development policies like the Road and Belt, technological innovations and artificial intelligence or even sports and entertainment.

Don’t believe me? Consider this then: China is the world leader in applications for inventions with 1.36 million patents and it has been the leader for seven consecutive years.

When it comes to investing in research and development, it ranked second in the world last year.

It’s all part of China’s blueprint for world domination. And that’s no song and dance!

So aunty, so what? June H.L. Wong

Aunty wished she could highlight more of the five-plus hour-long gala. If you haven’t watched it, you should check it out on YouTube. Feedback: aunty@thestar.com.my

Related Links:

Beijing tops again in patent applications worldwide – ASEAN/East Asia …

China leads patent applications worldwide | Business

R&D input ‘2nd-highest in the world’ 

China Dominates Top Western Economies in Patent … – VOA News

China dominates top Western economies in patent … – Phys.org

China dominates top economies in patent applications | Asia Times

China applying for more patents than ever before as companies push …

http://www.scmp.com › Business › Companies

Source: World Intellectual Property Organization

Related Posts:

J-20 stealth fighter, Y-20 transport plane show China’s advances in technology

Tiangong-2 space lab draws global praise, with the world’s first “cold” atomic clock on board 

China’s Tiangong-1 completes orbit maneuver & the future missions

China Successfully Launches 1st Space Lab Module Into Orbit for Docking Tests

China aims to be top at science

Greener pastures: Wang at his company’s headquarters in Shanghai. The successful Silicon Valley alumni was lured back to China by the pro…

 

%d bloggers like this: