Singapore budget 2018: hiking its sales tax, but not until 2021 or later


http://www.singaporebudget.gov.sg/budget_2018/

Higher GST: A file picture showing people walking along busy Orchard Road in Singapore. The country says its sales tax will rise to 9% but the change will come sometimes between 2021 and 2025

 Singapore is hiking its sales tax, but not until 2021 or later

 SINGAPORE (Reuters) – Singapore said its sales tax will rise to 9 percent from 7 percent, but the change will only come “sometime” between 2021 and 2025, making it likely that the increase would kick in after the city-state’s next general election.
Instead of getting a GST hike soon, Singaporeans aged 21 and above will get a “hong bao”, or Lunar New Year red packet, as Finance Minister Heng Swee Keat announced a “one-off” bonus in 2018 of up to S$300 ($228.50), depending on their income.
The bonus comes after Singapore’s trade-reliant economy grew 3.6 percent in 2017, its best pace in three years.
Global economic growth, plus comments by policymakers on the importance of raising revenue to meet future spending needs for Singapore’s ageing population, led many analysts to expect that the Goods and Services Tax, kept at 7 percent since 2007, would increase as early as the coming fiscal year.
“The surprise for us was that the planned increase was for a much later period,” said Jeff Ng, chief economist Asia for Continuum Economics.
“This eases the need for a future government or administration to announce the GST,” Ng said.
Singapore’s next general election is due to be held by January 2021. In the last one in 2015, the ruling People’s Action Party won 70 percent of the vote, a strong improvement from the 60 percent garnered in 2011.
After announcing the planned GST hike, the finance minister said “the exact timing will depend on the state of the economy, how much our expenditures grow, and how buoyant our existing taxes are. But I expect that we will need to do so earlier rather than later in the period.”
Singapore introduced a GST in 1994, with a 3 percent rate. This was raised to 4 percent in 2003 and 5 percent in 2004, then to 7 percent in 2007. The current rate is among the world’s lowest for a consumption tax.

CARBON TAX COMING

Besides the plan for raising GST, Heng unveiled other tax measures.
These include increasing the top marginal buyer’s stamp duty on residential property worth more than S$1 million effective from Tuesday, raising the excise duty on tobacco products and introducing GST on imported services from 2020.
Coming in 2019 is a carbon tax, which will be S$5 per tonne of greenhouse gas emissions until 2023. The plan is to increase it to between S$10-S$15 per tonne by 2030.
Heng said spending needs will rise across various sectors in coming years, including in healthcare, infrastructure and security.
The government expects average annual healthcare spending to rise from 2.2 percent of GDP currently, to almost 3 percent of GDP over the next decade, he added.
“With an ageing population and an increasing chronic disease burden, the demands on families and Government will rise,” the finance minister said. “We will need to spend
even more on healthcare.” Heng, one of several cabinet ministers considered a possible successor to Prime Minister Lee Hsien Loong, said in the speech “We must anchor Singapore as a Global-Asia node of technology, innovation and enterprise.”
Song Seng Wun, an economist for CIMB private banking, said the one-off “hong bao” bonus was a product of Singapore’s economy having a “better than expected outcome” in the last year.
(For a graphic on Singapore’s ageing demographics click reut.rs/2BzapNH)
Reuters Graphic
($1 = 1.3125 Singapore dollars)
Additional reporting by Aradhana Aravindan and Fathin Ungku; Editing by Richard  BorsukOur Standards:The Thomson Reuters Trust Principles.

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 Singapore announces one-time bonus of S$100-S$300 for adult Singaporeans – ASEAN/East Asia

 

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New Year 2018 high for Malaysia


FBM KLCI moves higher past 1,800 mark while ringgit breaches RM4 level

In a synchronised fashion, the ringgit, stock market and exports are all glowing for Malaysia. Add this to the rising price of crude oil, economists are expecting the good start to the year to continue leading up to GE14. Experts foresee these translating to lower import costs and more affordable overseas education.

 

Busa and ringgit on a high

PETALING JAYA: In a rare occurrence, the local capital markets got off to a roaring start in the first week of the new year.

US$ vs ringgit at 3.9965 

Sentiments on the stock market picked up as it sailed through the 1,800 mark, the ringgit breached the RM4 level against the US dollar and the latest trade numbers released showed that exports have hit record levels.

FBM KLCI up 14.52pts to 1,817.97

The FBM KLCI, a key benchmark for the local stock market, closed at 1,817.97, up 14.52 points yesterday – the highest since April 2015. Analysts and fund managers expect the upward momentum to continue, leading to the 14th General Election (GE14).

“The local stock market is set to continue its upward momentum, with investors in optimistic mood, lingering upon expectations of the GE14,” an analyst said.

The Malaysian stock market is now playing catch-up with key regional markets in other countries that have been moving up.

For instance, in the United States, the Dow Jones Industrial Average closed at fresh record highs above 25,000. Trading volume on Bursa has risen sharply to a high of nearly six billion shares valued at RM3.94bil. This is the highest since 2014.

“The increasing volume is an indicator of more investors joining the fray,” said the analyst.

The ringgit also perked up against the US dollar and strengthened to 3.9945 yesterday, the strongest level since August 2016.

Crude oil prices continue to climb with the Brent Crude rising above US$67 per barrel. Apart from a brief spike in May 2015, this is the highest price levels it has reached since December 2014, when the oil price started its slide down.

Exports in November rise to RM83.50bil

Exports hit record high of RM83.5bil in November – Business News …

Adding to the optimism, the country’s latest trade data for November showed that exports exceeded expectations and rose to a monthly high of RM83.5bil. This is an increase of 14.4% from last year.

The head of UOB Kay Hian Malaysia Research, Vincent Khoo, expects global and local conditions to be favourable for the local stock market as sentiment builds up for the GE14.

“Malaysia has been a laggard and now it is reversing its underperformance. Liquidity is strong locally and internationally as there is more foreign funds participation.

“Economic numbers are strong and export momentum continues to be solid,” Khoo said.

Socio Economic Research Centre executive director Lee Heng Guie said there were continued optimism and positive sentiments on the global economy and markets.

He said the tax reforms in the US would beef up corporate earnings while central banks around the world were raising rates.

The impending GE14, he added, spurred investors’ interest in the stock market and the recovery in oil prices continued to lift the demand for ringgit.

He said the ringgit had a good rally since the last Bank Negara meeting and the upcoming meeting on Jan 29 might see the central bank review its overnight policy rates (OPR) upwards.

The OPR now is 3.25% and many are expecting it to increase, a move that would spur banks to raise their interest rates.

Additionally, Lee said trade data was better than expected and as long as the macro numbers and earnings deliver, it would lift sentiments on market.

Nonetheless, he said investors might be a bit cautious when the dissolution of Parliament was announced.

Meanwhile, Oanda head of trading Asia-Pacific Stephen Innes said Bursa Malaysia was playing catchup as the ringgit remained undervalued in a lot of fund managers’ portfolio.

“But I think the current run will take us to 3.90 (against the US dollar) but at this stage, I think the market is starting to factor in the Bank Negara rate hike in January.

“So we may see a slower appreciation of the ringgit and we should expect profit taking ahead of the rate decision (by BNM) later in the month,” he added.

On the external front, Inness said the global equity market rally was benefiting from higher commodity prices in general and specifically oil prices.

“The recent supply disruptions are having a much more significant impact on prices given Opec’s (Organisation of the Petroleum Exporting Countries) recent production cut and the market is certainly much tighter than it has been in the past.

“Rising oil prices bode well for the FBM KLCI given that oil and gas constituents play a big role in the KLCI make-up. However, I don’t think this is strictly an isolated oil play but it is also rallying on the global growth narrative which is supporting export-oriented firms,” Innes said.

By leong hung yee The Staronline

Bursa and ringgit on a high

 

FBM KLCI moves higher past 1,800 mark while ringgit breaches RM4 level

PETALING JAYA: In a rare occurrence, the local capital markets got off to a roaring start in the first week of the new year.

Sentiments on the stock market picked up as it sailed through the 1,800 mark, the ringgit breached the RM4 level against the US dollar and the latest trade numbers released showed that exports have hit record levels.

The FBM KLCI, a key benchmark for the local stock market, closed at 1,817.97, up 14.52 points yesterday – the highest since April 2015. Analysts and fund managers expect the upward momentum to continue, leading to the 14th General Election (GE14).

“The local stock market is set to continue its upward momentum, with investors in optimistic mood, lingering upon expectations of the GE14,” an analyst said.

The Malaysian stock market is now playing catch-up with key regional markets in other countries that have been moving up.

For instance, in the United States, the Dow Jones Industrial Average closed at fresh record highs above 25,000. Trading volume on Bursa has risen sharply to a high of nearly six billion shares valued at RM3.94bil. This is the highest since 2014.

“The increasing volume is an indicator of more investors joining the fray,” said the analyst.

The ringgit also perked up against the US dollar and strengthened to 3.9945 yesterday, the strongest level since August 2016.

Crude oil prices continue to climb with the Brent Crude rising above US$67 per barrel. Apart from a brief spike in May 2015, this is the highest price levels it has reached since December 2014, when the oil price started its slide down.

Adding to the optimism, the country’s latest trade data for November showed that exports exceeded expectations and rose to a monthly high of RM83.5bil. This is an increase of 14.4% from last year.

The head of UOB Kay Hian Malaysia Research, Vincent Khoo, expects global and local conditions to be favourable for the local stock market as sentiment builds up for the GE14.

“Malaysia has been a laggard and now it is reversing its underperformance. Liquidity is strong locally and internationally as there is more foreign funds participation.

“Economic numbers are strong and export momentum continues to be solid,” Khoo said.

Socio Economic Research Centre executive director Lee Heng Guie said there were continued optimism and positive sentiments on the global economy and markets.

He said the tax reforms in the US would beef up corporate earnings while central banks around the world were raising rates.

The impending GE14, he added, spurred investors’ interest in the stock market and the recovery in oil prices continued to lift the demand for ringgit.

He said the ringgit had a good rally since the last Bank Negara meeting and the upcoming meeting on Jan 29 might see the central bank review its overnight policy rates (OPR) upwards.

The OPR now is 3.25% and many are expecting it to increase, a move that would spur banks to raise their interest rates.

Additionally, Lee said trade data was better than expected and as long as the macro numbers and earnings deliver, it would lift sentiments on market.

Nonetheless, he said investors might be a bit cautious when the dissolution of Parliament was announced.

Meanwhile, Oanda head of trading Asia-Pacific Stephen Innes said Bursa Malaysia was playing catchup as the ringgit remained undervalued in a lot of fund managers’ portfolio.

“But I think the current run will take us to 3.90 (against the US dollar) but at this stage, I think the market is starting to factor in the Bank Negara rate hike in January.

“So we may see a slower appreciation of the ringgit and we should expect profit taking ahead of the rate decision (by BNM) later in the month,” he added.

On the external front, Inness said the global equity market rally was benefiting from higher commodity prices in general and specifically oil prices.

“The recent supply disruptions are having a much more significant impact on prices given Opec’s (Organisation of the Petroleum Exporting Countries) recent production cut and the market is certainly much tighter than it has been in the past.

“Rising oil prices bode well for the FBM KLCI given that oil and gas constituents play a big role in the KLCI make-up. However, I don’t think this is strictly an isolated oil play but it is also rallying on the global growth narrative which is supporting export-oriented firms,” Innes said.

Experts see good tidings in firmer currency

Back in favour:People queuing to change the ringgit for US Dollar at a money exchange outlet in Bangsar, Kuala Lumpur.

PETALING JAYA: Lower import costs and more affordable overseas education are among the benefits brought about by a firmer ringgit and bullish stockmarket.

National Chamber of Commerce and Industry of Malaysia (NCCIM) president Tan Sri Ter Leong Yap said the rise in the ringgit is a sign of growing confidence in the nation’s economy.

“These are good signs which have set a feel-good mood for the market. What is most important is for the ringgit to remain stable as business needs this rather than having to hedge on the foreign exchange,” he said.

However, a stronger ringgit could act as a “double-edged sword”, Ter added, as exports would now cost higher.

“Exporters may not make the windfall profit as before but they had adjusted to this,” said Ter, who is also Associated Chinese Chamber of Commerce and Industry of Malaysia (ACCCIM) president.

Malaysia Retail Chain Association (MRCA) president Datuk Garry Chua said a stronger ringgit bodes well for retailers that rely heavily on imports.

“In the end, the shoppers will benefit as cost of products would be lower due to the exchange rate,” he said.

Chua said the positive stock run was also good news for retailers and consumers.

“People tend to spend more due to easy earnings from the market and this is good for business,” he said.

Malaysia Associated Indian Chambers of Commerce and Industry (MAICCI) president Tan Sri Kenneth Eswaran said the positive developments showed that the nation’s economic transformation is on the right track.

“The ringgit breaking the RM4 barrier and the stock market climb are signs showing the Government’s economic transformation plans are bearing fruit. Traders and consumers will now enjoy lower import costs,” he said.

Taylor’s University deputy vice chancellor Prof Dr Pradeep Nair said the ringgit’s rally is expected to continue and strengthen below the RM4 region.

“For the education sector, this will be beneficial for parents who wish to send their children abroad to do part or whole of their studies to countries like the US, UK and Australia, should the trend continue,” he said.

He said a firmer ringgit would not have a major impact on incoming foreign students.

“We are still relatively cheaper than other countries that use English as the medium of teaching and we will remain one of the preferred destinations for foreign students looking for affordable, quality education,” he said.

Sunway Education Group senior executive director Dr Elizabeth Lee said some parents would be more willing to send their children abroad for further studies.

“I sense that enthusiasm in parents who enrolled their children with us. They are more confident of supporting their higher education throughout,” she said.

By martin carvalho The Staronline

Ringgit boost for investors, importers 

Companies which lost out during a low ringgit recouping fast

Ringgit on uptrend: People queuing up to change money at a money changer. The ringgit has broken past the crucial 4.00 level.

THE New Year is in, tides are changing and the ringgit is recovering from the past two year’s extreme blues.

The long-awaited reprieve has finally come for certain consumer companies that import intermediary goods for their production cycle.

Foreigners who have taken advantage by accumulating and buying into the equity and/or bond market when the ringgit was at a weaker level last year, would be firmly in the money now.

Analysts see the local currency as now being on a cruise control climb mode moving to new highs in the past week and possibly in the near future.

They note that the foreign buyers would see two-way gains and would be able to realise their gains if they choose to.

“If they liquidate and take the money out they will realise the gains and benefit. Last year the ringgit strengthened by almost 10.4%. Ringgit already broke the crucial 4.00 level, assuming that they make money from the market and take it out, they will also pay less to convert to US dollar,” Socio Economic Research Centre’s executive director Lee Heng Guie tells StarBiz Week.

The ringgit had seen a gain of 0.64% after we entered the New Year, adding to its gains that was achieved in the past two months of 5.63%.<

Currency strategists agree that the next crucial psychological mark would be the 3.80 level that is the infamous currency peg level some years after the 1997 Asian Financial Crisis.

The recovering oil prices with the lifting of equity markets due to strong global sentiment aided gains in the ringgit, Lee says.

The FBM KLCI saw a strong upward move as investors celebrated Christmas and ushered in the New Year thereafter.

The benchmark index had gained some 4.6% since Dec 19 to yesterday’s close at 1,817.97.

Meanwhile, the other companies that will stand to gain are consumer-driven companies especially those that have imported intermediary goods to manufacture or complete end products.

Lee says the strengthening ringgit, if it is sustained, would eventually help to boost the consumer sentiment index (CSI).

In the latest reported third quarter of 2017, the Malaysian Institute of Economic Research (Mier) said the CSI continued to remain weak with the index having retreated further to 77.1.

“Anxieties over higher prices grow and (there are) burly spending plans amid waning incomes and jobs,” the Mier said at the release of third quarter CSI figures then.

Any CSI level below the 100 indicates weakness on the consumer front.

Lee says he is hopeful the stronger ringgit would help eventually translate to additional cost savings to the consumer in the form of lower prices.

Meanwhile, MIDF Research’s consumer stocks analyst Nabil Fithri says not all consumer companies would automatically gain from the strengthening ringgit.

He notes that the gainers among the consumer companies would mainly be those which derive their sales from the local market and have imported intermediary goods in the supply chain.

“On average, the companies that import their raw materials lock in the prices through forward contracts for the upcoming six months. So, if there are any gains to their profit margins, it would be seen in the second half of the year,” he says.

Among the companies that stand to gain from this trend are the major consumer food companies such as Fraser & Neave Holdings Bhd (F&N), Nestle (M) Bhd and Dutch Lady Milk Industries Bhd.

Strong gains: The Dutch Lady Milk Industries
factory in Petaling Jaya. The company’s stocks had been making strong
gains since last year.
Better profit: Nestle Malaysia is one of the companies gaining from a strong ringgit.

All three stocks have been making strong gains in their share prices last year despite their high base.

Observers note that a common theme today that belies these stocks are that they derive their sales from the local market, with minimal or zero exports. Hence they will benefit from strong gains should the local currency appreciate further.

“Their raw materials that form a big part of their production are ingredients such as milk, coffee and sugar which are not readily available locally. They need to be imported and these are denominated in US dollar,” an analyst with a local research outfit says.

Two of those stocks that were mentioned above topped the gainers list on Friday: Nestle rising by RM1.20 to a new historical high of RM103.80 and F&N hitting an alltime high of RM27.82.

Investors may also want to train their sights on the smaller-capitalised consumer stocks some of which had been at a disadvantage earlier due to the weakened ringgit.

The stocks in this space include Apollo Food Holdings Bhd, Hup Seng Industries and Berjaya Food Bhd.

Apollo Food, the maker of packaged confectionery products see a big part of their sales being derived locally and their food is usually stocked in the school canteens.

The stock is trading at a current price to earnings ratio (PER) of 23.6 times and forward financial year 2018 ending April 30 (FY18) PER of 18.96 times.

The company’s second quarter profit had dropped by 11.1% to RM3.82mil primarily due to the lower ringgit then compared to the same quarter a year ago.

When the ringgit was trading above the 4.00 level then, the company had said in its prospectus that its operating environment was more challenging due to the increase in costs of raw materials.

Meanwhile, Berjaya Food Bhd could see further gains ahead as the ringgit continues its ascent.

The company owns half of the popular Starbucks franchise in Malaysia beside owning the worldwide Kenny Rogers Roasters franchise after acquiring KRR International Corp of the US in April 2008.

AmInvestment Bank Research said last month that it believed the worst is over for Berjaya Food with KRR’s robust same store sales growth following the disposal of KRR Indonesia.

The research house had highlighted that Berjaya Food would benefit from a stronger ringgit.

AmInvestment Research maintained its buy recommendation on Berjaya Food with fair value of RM1.91 per share.

“Valuations are pegged to a PER of 25 times FY19 forward, reflecting a 20% premium to its historical valuations. We think that it is justified as Berjaya Food has significantly enhanced earnings visibility following the disposal of KRR Indonesia, attractive growth off a low base and a stellar Starbucks brand,” it says.

By daniel khoo TheStaronline

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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Chinese car-maker Geely to make Malaysia its global hub, help Proton drive into future


PUTRAJAYA: The entry of a major Chinese carmaker into Proton Holdings Bhd will not only ease its financial woes, but also bring fresh capacity to the group’s underutilised factories.

Zhejiang Geely Automotive Co Ltd plans to turn Malaysia into its global hub to manufacture all of its right-hand drive cars, including its premium Volvo brand.

Geely will take a leadership role in production, sales and marketing. Proton will be responsible for distribution of the brand in Malaysia.
These were among the highlights mentioned at the signing ceremony in Putrajaya between DRB-Hicom, the parent company of Proton, and Geely.

Proton and Geely yesterday signed an agreement that would see Geely take a 49.9% stake in Proton. Both parties have not finalised the price Geely would pay for the stake.

Through the partnership, Geely executive vice-president and chief financial officer Daniel Li said Geely would focus on assisting Proton to sell 500,000 cars in Malaysia and around the region by 2020.

He said Geely would be contributing technology, talent and money to Proton. These include platform-sharing that would see the development of Proton’s first-ever SUV model from Geely’s best selling model – the Boyue.

DRB-Hicom group managing director Datuk Seri Syed Faisal Albar said in the competitive automotive industry, partnership among carmakers globally was common.

A partnership would also further expand Proton’s reach to other markets and give it better economies of scale.

“This partnership with Geely will create more jobs in Proton,” he told reporters yesterday.

Proton has a workforce of about 10,000 which produces about 100,000 cars a year. In 2016, sales of Proton cars dropped 30% to 72,290 units from 102,174 previously.

The company reported a loss of almost RM1bil last year.

Proton’s Tanjung Malim plant, which is designed to produce a million cars every year, will be made a new manufacturing hub for Geely.

Syed Faisal said Proton would relocate its entire production from Shah Alam to Tanjung Malim within five years.

Despite the entry of a new foreign partner, Proton will maintain its national car status. This means its industrial linkages, including vendors and dealers, will not be affected by the change in shareholding.

Under the heads of agreement signed between DRB-Hicom and Geely, the Chinese carmaker will take a 49.9% equity interest in Proton and also a controlling stake in Lotus, the British sportscar maker, from Proton.

No financial details were disclosed in the sale of a stake in Proton, while for Lotus, Geely would be paying £51mil (RM284mil) for a 51% stake in Lotus.

Syed Faisal said DRB-Hicom planned to sign a definitive agreement with Geely in July.

Also present at the signing ceremony was Second Finance Minister Datuk Seri Johari Abdul Ghani, who clarified that with the partnership with Geely in place, Proton would need to repay its RM1.25bil soft loan from the Government.

As part of the conditions for the soft loan, Proton was required to collaborate with a well-known strategic partner.

The requirement to collaborate with a well-known strategic partner was imposed on Proton as part of the conditions issued by the Government for its approval of the RM1.25bil soft loan to Proton, in which a bulk of the money was used to pay its vendors.

Separately, Johari said Proton was entitled to a RM1.1bil reimbursement from the Government for its RM3.5bil spent on research and development in the past.

Johari also said there would be no more “subsidy” for Proton from now on, and that the Government would no longer have a golden share in Proton with Geely entering into a partnership with the national carmaker.

Source: The Star by intan farhana zainulandizwan idris

‘Geely to help Proton drive into future’

IPOH: The decision by Proton to embark on a partnership with China’s Zheijiang Geely Automotive Co Ltd is timely because cars are predicted to be next in line to undergo sweeping innovations.

International Trade and Industry Minister II Datuk Seri Ong Ka Chuan said that in light of Industrial Revolution 4.0, bringing in Geely as Proton’s strategic partner would ensure the Malaysian company’s survival as cars increasingly adopt digital technology.

Industrial Revolution 4.0, or Industry 4.0, is the current trend of automation and data exchange in manufacturing technologies which include cyber-physical systems, the Internet of Things and cloud computing.

“After attending the Hannover Messe, the world’s biggest trade fair for industrial technology, I learned that self-driving cars are the next big thing.

“This means that you are looking at a future where cars will have no steering wheel.

“With just the touch of a panel, the car will bring you to your destination,” Ong said after witnessing the swearing-in of the new committee of the Perak Chinese Cemeteries Management Association yesterday.

He said Geely would be Proton’s channel to embracing technological innovations.

“I’m not saying to expect Proton to be a frontliner in this, but at least with a strategic partner it can move along with the times,” he added.

He said Geely would also open a new market for Proton, which was important for the national carmaker’s survival.

He said it was not a decision made purely in favour of China.

“Over the years, it’s been no secret that Proton accumulated losses and will need a big market to cater to in order to settle all the debts. This is the reality.

“Proton only narrowly met its sales target of 580,000 units last year, while Chinese brands sold 28 million units,” he said.

In view of its small volume, Ong said it would be difficult for Proton to fund sophisticated research and development initiatives.

“We need a larger market for things to work out. The Industrial Revolution 4.0 is all about innovation. We can’t do it ourselves, which is why working with advanced nations is our best bet,” he added.

The Star by Amanda Yeap

Related links:

Najib: Up to RM1bil losses for Proton if sale to Geely blocked …

RM500 aid for civil servants – Nation

PM: Sovereignty will never be compromised – Nation

No place for sentiment in Proton deal – theSundaily

Related posts:

Proton and a terribly flawed Malaysian Automotive Policy 

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.

Penang Development Corporation (PDC) general manager Datuk Rosli Jaafar said the RM200mil project dubbed ‘GBS By The Sea’ would be part of a rejuvenation exercise for the Bayan Lepas industrial area.Hi-tech facility aims at rejuvenating economy in Bayan Lepas

“The project, which will be located beside the Motorola factory, will also be used as a catalyst to rejuvenate the economy.

“Under the first phase, 2.7ha of space will be developed and will feature a nine-storey seafont building which will house the Multimedia Super Corridor Malaysia Cybercentre,” he said after announcing the project in Komtar on Tuesday.

Rosli added that there would be a multi-storey 2,500-bay car park complex, retail and F&B outlets, and also an integrated centre for IT and R&D activities.

“The futuristic hub will also have a central meeting place for people to meet up.

“It will also harness natural sunlight as lighting, making it an environment-friendly development.

“When completed in 2020, the project will create some 3,000 jobs,” he said.

Chief Minister Lim Guan Eng, who was present, said the project would provide higher value jobs in the manufacturing industry through expansion and diversification of the GBS business.

“Penang aims to be part of the Industry 4.0 Transformation, which revolves around big data analytics, e-commerce, crowdsourcing, cloud computing and the Internet of Things.

“GBS By The Sea is expected to attract many key international players into the state,” he said.

Lim added that according to a study by Outsourcing Malaysia, the country’s GBS sector is expected to see a compounded annual growth rate of 10% to 15% over the next three years.

Global biz hub for Penang 

 

\Part of the buildings to be built at the GBS centre.

PENANG has identified a 72.8ha site in Bayan Lepas to be turned into a Global Business Services (GBS) centre.

Penang Development Corporation (PDC) general manager Datuk Rosli Jaafar said the RM200mil project dubbed ‘GBS By The Sea’ would be part of a rejuvenation exercise for the Bayan Lepas industrial area.

“The project, which will be located beside the Motorola factory, will also be used as a catalyst to rejuvenate the economy.

“Under the first phase, 2.7ha of space will be developed and will feature a nine-storey seafont building which will house the Multimedia Super Corridor Malaysia Cybercentre,” he said after announcing the project in Komtar on Tuesday.

Rosli added that there would be a multi-storey 2,500-bay car park complex, retail and F&B outlets, and also an integrated centre for IT and R&D activities.

“The futuristic hub will also have a central meeting place for people to meet up.

“It will also harness natural sunlight as lighting, making it an environment-friendly development.

“When completed in 2020, the project will create some 3,000 jobs,” he said.

Chief Minister Lim Guan Eng, who was present, said the project would provide higher value jobs in the manufacturing industry through expansion and diversification of the GBS business.

“Penang aims to be part of the Industry 4.0 Transformation, which revolves around big data analytics, e-commerce, crowdsourcing, cloud computing and the Internet of Things.

“GBS By The Sea is expected to attract many key international players into the state,” he said.

Lim added that according to a study by Outsourcing Malaysia, the country’s GBS sector is expected to see a compounded annual growth rate of 10% to 15% over the next three years.

Also present were Deputy Chief Minister Datuk Mohd Rashid Hasnon, investPenang general manager Loo Lee Lian and other state exco members.

Penang homes priced beyond reach of most youths 

 

More than 90% of respondents surveyed hope to own property but only half believe that it is possible.

THE majority of youths in Penang have no choice but to rent due to high property prices.

Most (73.2%) are staying in a property owned by a family member or a relative and many (93.7%) are hoping to own a house within the next five years.

These are some of the findings of an opinion poll carried out by the state government on a sample group of 606 youths, aged 18 to 29.

Penang Institute senior analyst Yeong Pey Jung (pic) said an overwhelming 90.2% of respondents found it difficult to purchase property in Penang while 43.4% revealed that it was not difficult to rent a property here.

“In looking at the responses on perception towards property prices, 91.8% found prices in Penang to be considerably expensive while 69.3% are of the opinion that affordable housing in Penang is not affordable.

“If we look into the 24 to 29 age group, who have a higher purchasing power, 81.7% conclude that affordable housing is unaffordable. This is a phenomenon observed throughout Malaysia especially in urban areas,” she told a press conference on the outcome of the Penang youth survey in Komtar on Tuesday.

Yeong added that more than 90% of respondents hoped to own property but only half of them believe that it is possible.

“The telephone survey, which was conducted in February this year, was to find out how Penang youths feel towards social, economic and political concerns.”

The survey also showed that over 70% of youths involved in community projects were not interested in taking up leadership roles.

They also expressed a general disinterest in politics.

In terms of health, more than half of youths engaged in regular exercise.

About 56.4% found difficulty in gaining employment, a sentiment shared by their peers and immediate social circle.

Penang Youth and Sports, Women, Family and Community Development Committee chairman Chong Eng said the survey was an initiative towards the Penang Youth Development Blueprint.

“The blueprint will be inclusive and function as a guide to encourage social upward mobility and enhance the youths’ development socially, economically and politically.”

The next phase is to conduct a focus group discussion and in-depth interviews with all sectors of the youth community.

Sources: The Star/ANN



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The Death of the iPhone


 

When I first predicted the “death of the iPhone” in January 2016, most people just laughed.

But when Apple reported its first-ever decline in iPhone sales just three months later, many began to quiet down and listen.

Now, even Tim Cook is recognizing the slowdown, after posting a surprise sales decline in second-quarter earnings this week.

According to Apple’s own CEO:

“We’re seeing what we believe to be a pause in purchases on iPhone.”

Cook has his own theories, but he’s missing the bigger picture. Apple has failed to innovate, and it’s costing the company a fortune.

Many are banking on the iPhone 8, but the truth is even it won’t stand up to what’s coming next::

Simply put, the age of the iPhone is coming to an end…

And the age of augmented and virtual reality is just around the corner.

For investors, that means a once-in-a-lifetime opportunity you don’t want to miss.

 

Good Investing,
Stutman sig

The Malaysian Anti-Corruption Commission (MACC) needs strong finishing


Biggest seizure: A case that caught the attention of the nation was the seizure of cash, jewellery and other expensive items from the homes of two former top Sabah Water Department officials in October last year.

ONE need not go far to see how effective the Government can be when dealing with highly problematic issues involving people who blatantly do not comply with the rules.

After the National Higher Education Fund Corp (PTPTN) issued a warning to loan defaulters that they would be blacklisted and may not be able to travel abroad, the repayment of their loans increased. There is almost a 300% jump in withdrawals from the Employees Provident Fund’s (EPF) account for education purposes – rising from RM578mil in 2015 to RM1.48bil last year.

According to officials from the EPF, the bulk of the money withdrawn has been channelled toward the repayment of loans owed to PTPTN.

Clearly, the prospects of being blacklisted – a record that will remain forever – and the possibility of being stopped at the airport before leaving overseas for a holiday are reasons enough for them to repay their loans.

The lackadaisical attitude of those who have taken student loans is just another sign of apathy. The former students who are now young working adults know very well that they have an obligation to repay the loans.

However, they do not bother to do so until measures are put in place to hit them hard where it matters.

On a larger scale, corruption is a big problem in Malaysia. It is a major problem that has reached a state where most companies set aside a certain amount to “grease” key people to get jobs.

Everybody knows the danger of getting caught but the practice continues. Towards this end, the Malaysian Anti-Corruption Commission (MACC) has, in recent months, been on overdrive to nab those suspected of corrupt activities.

But has the message that the MACC means business been drilled down?

In South Korea, former president Park Geun-hye was detained on April 1 ahead of her trial. Prosecutors said the allegations against her were grave and the other suspects in the case, including her confidante Choi Soon-sil and Samsung heir Lee Jae-yong, have already been arrested.

In that country, it’s clear that corruption will not be tolerated. Those being investigated will be put behind bars even before the trial starts.

In the last few months, a regular feature in newspapers is the string of high-profile personalities who have been arrested for allegations involving bribery or money laundering.

They include politicians, civil servants, heads of government-linked funds and businessmen. Those who solicit bribes and the parties that give the money or even facilitate bribery have been arrested and remanded.

Some of them have been charged before being let off on bail.

Pictures of the persons involved are all over the newspapers and social media. In some cases, names are mentioned.

The “shaming and naming” of the people hauled up and being investigated is damaging. It is the talk of the town – especially among the private-sector businessmen.

However, there are some reservations on whether the efforts by the MACC would pay off.

At the end of the day, what would matter is seeing how many get prosecuted successfully; how many are handed down custodial sentences.

And most importantly, the speed in which these cases are disposed of by the courts.

For now, most of these MACC cases are already being filed in court and some have been charged. But the trial proper is a process that is likely to take a long time.

And the danger is the momentum will slow down when there is no speedy end to the cases.

There is also the issue of managing perception when there are delays in the outcome.

For instance, two senior officials of the Federal Land development Authority (Felda) were charged with criminal breach of trust involving RM47.6mil for a sturgeon-breeding project in March this year. The offences were allegedly committed between January and July 2014. The hearing will probably start in a few months.

In the meantime, Felda continues to fight the battle to improve its perception on improving governance and returns on its investments.

The share price of Felda Global Ventures Holdings Bhd is a far cry from the valuations it fetched during its listing in 2012. The returns from the RM2bil that Felda has invested in Felda Investment Corp is nothing much to shout about.

One case that has caught the attention of the nation was the seizure of cash, jewellery and other expensive items from the homes of two former top Sabah Water Department officials in October last year.

According to reports, it took 30 MACC officers and 15 hours to count the cash of more than RM53mil that was seized.

The display of the stacks of bank notes seized from the homes is still an image that is popular on social media. The case, touted as the nation’s biggest corruption case involving RM61.4mil in cash and other assets, has been fixed for hearing in July and August this year. According to reports, some 200 witnesses will be called for the case.

When the case will be concluded is anyone’s guess. In the meantime, it leaves many wondering if the MACC would be successful in its efforts.

Corruption affects the country as a whole. It is estimated that there is a leakage of about 20% of the annual spending for projects and procurement. For instance, the Federal Government development expenditure for 2016 was about RM50bil and 20% is easily RM10bil.

Larger sums are budgeted for government agencies that are not part of the Federal Government balance sheet. This includes the likes of Mass Rapid Transit Corp Sdn Bhd that handles the rail infrastructure projects running into 10s of billions of ringgit. The government-linked companies are another set of entities with big budgets.

What the MACC needs now is a speedy end to such high-profile cases.

Whether the prosecution is successful or otherwise, a quick closure to such cases will help MACC instil public confidence in it. A strong finish to the investigations is much needed.

By M.Shanmugam The Star

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