Johor-Singapore Special Economic Zone: Pipedream or Vision?

Malaysia’s plan to finalise the Johor-Singapore Special Economic Zone (JSSEZ) agreement by September will have to be aborted, as negotiations continue over several sticking points. The discussions are set to take place at the 11th Singapore-Malaysia Leaders’ Retreat, that is likely in December 2024.

Among the issues where both sides have yet to bridge the gap are contributions to a facilitation fund for companies looking to expand operations to Johor and skilled workforce provisions.

While Singapore and Malaysia had signed a memorandum of understanding in January targeting a deal by the end of 2024, Malaysia’s Minister of Economy Rafizi Ramli said in July that the final agreement was expected to be inked in September.

The JSSEZ, which was officially announced in October 2023 during the Malaysian Prime Minister’s visit to Singapore for the 10th leaders’ retreat, is an integrated zone for business and investment to ease the movement of people and goods across the border. The project is likely to cover Iskandar Malaysia and Pengerang, spanning 3,505 sq km across southern Johor, more than four times the size of Singapore. The proposed area would span across six districts - Johor Bahru, Iskandar Puteri, Pasir Gudang, Pontian, Kulai and Kota Tinggi. 

Although the JSSEZ is expected to lure new investments, spur trade and generate employment opportunities, persistent challenges in ironing out negotiations have affected the deadline initially set by Malaysia.

A survey of 160 businesses done by the Singapore Business Federation has shown that Singapore companies are keen to invest in Johor but face challenges such as talent shortages, cross-border movement needs and a fragmented investment landscape. Although the findings, announced in July, showed that 93 per cent of respondents view Johor as an attractive investment destination, talent shortages were a major concern. Nearly 60 per cent of the businesses reported difficulties in sourcing skilled workers in Johor.

The proposal to establish the JSSEZ comes after Iskandar Malaysia, which was conceptualised as an economic growth corridor in 2006, failed to hit investment targets, particularly after Covid-19 pandemic border restrictions.

Analysts say potential projects should include the construction of a third bridge connecting the heavy industrial area of Pasir Gudang in Malaysia to Singapore’s Changi Airport, potentially unlocking wider export markets for both countries. Other underexplored areas include joint research in modern agriculture and urban farming by higher education institutions of both countries and leveraging Johor’s abundant land to enhance food security.

The potential for synergy is tremendous. The model should be Shenzen-Hong Kong (“SHK”) corridor. The difference is that SHK is one country with two systems. In our case, it is two countries with one system! But if we are collaborative and cooperative, we could have the potential for an innovation and technology park; healthcare and bio-medical science clusters; solar farms and R&D; and many other areas working with universities in Educity Iskadar and Singapore. But will egos get in the way? We shall see by end of 2024 if it is a vision to be realised or another pipedream.

References:

Malaysia’s September target for Johor-Singapore SEZ deal pushed to year end, The Business Times, 16 August 2024

Johor-Singapore SEZ: Pengerang’s potential as hub for ‘spillover’ business renews optimism for area’s development, Amir Yusof, CAN, 2 June 2024

Malaysia’s Failing Education System!

A couple of months ago, a friend who was a secondary school English language teacher applied for optional retirement. (some are excerpts from an Aliran topic on the above subject). 

“Why? You still have many more good years to go.” “I had enough. There’s just too much paperwork,” the teacher replied. “And these days, it is all about the numbers…. Then … there is that other matter…. You know, the system!”

She, like many other ethnic minority civil servants, had reached her glass ceiling! There was absolutely no hope for her to climb the civil service ladder and carry on in a more dynamic role.

Source:https://www.wikiimpact.com

Everyone knows about these ‘unwritten’ policies, some of which may be orchestrated by ‘little Napoleons’ within the system, with personal racist agendas and who may be running the whole show. These ‘policies’ can be very discouraging and dismissive of dedicated teachers like her.

Then there is another teacher, a skilled English-language teacher with a doctorate in education and extensive teaching experience, who was just biding her time before opting out in a few years. As an ethnic minority teacher, she had been told she would never be appointed as school principal of any national school (unless it was a mission school) – because such roles are allegedly reserved for people of a particular ethnic group.

So, who writes these ‘unwritten’ policies?

With so many excellent teachers leaving the system and so many young people emigrating, something is amiss. But no one wants to bell the cat. Against this backdrop, the PM has asked Singapore for teachers to help arrest the declining standards in the English language in Malaysia - a national embarrassment! Are we now so deficient in proficient English language speakers at home that we must beg? Not only have we squandered our own English language edge over the last four decades, but we have also failed to optimise the resources we still have.

For a broader perspective, let’s examine the Singapore story. Both Singapore and Malaysia had the same starting point in 1965. These days, Singapore’s schools are recognised as some of world’s top performers, excelling in maths, science and literacy. When asked how they achieved this, their answer is simple – “a coherent curriculum delivered to every school by high-quality teachers.”

Our national schools were once the preferred schools, at least in my time – the 60s and 70s. In the past, private schools were regarded as the alternative for those who had failed to make the cut in the national school system. Today, however, national schools have evolved to be perceived as ‘inferior’ – the result of all the ‘good intentions’ of the policies of the New Economic Policy (NEP), initiated in the 1970s and later through its subsequent derivatives.

These policies, including that of ‘ketuanan Melayu’ (ethnic Malay supremacy), have far outrun their course. They have now, wilfully or not, affected the quality of our schools and our teachers. Our schools are the seedbed where we design the shape, the intensity, the tone and the pitch of the nation’s future.

Perhaps it is time for the MoE to go beyond the political shenanigans and the politicians’ rhetoric. The ministry needs to look at itself!

Schools should be learning organisations that inspire intellectual growth. They are certainly not the place to be educating teachers about their own disciplines.

So, are we surprised we have dropped out of the international Pisa rankings for maths, reading and science? Are we surprised when vernacular schools and international schools have become more popular?

The future is a disaster if you look at national schools. But more parents today struggle but send their children to private schools or the vernacular ones.  It is time our leaders realised that the competition is not from people of other ethnicities within Malaysia but from our Asean neighbours, who may soon leave us trailing far behind.

Want to be radical or reform the system? None of it will happen on current thinking of the leadership. But perhaps I will put it up anyway:

1. Have a full English track for national schools;

2. Revise intake of teachers to include other ethnicities and give them hope to be principals of schools like VI, RMC or MCKK;

3. Recruit the very best for training with better remuneration linked to performance;

4. Remove the religious slant in the education curricula (this is done separately and after school); and

5. Focus and set a curriculum that will address the future – AI, automation, and the cyber/digital eco-space.

If you can do the above, then MOE will excel, and PISA scores will move up dramatically. If not, we can still talk about moving-up the value chain for the next 30 years!

Reference:

What lies deep beneath Malaysia’s failing education system, Sukeshini Nair, Aliran, 20 August 2024

GDP Growth Accelerates to 5.9% in Q2!

Malaysia's economy in the April-June quarter grew 5.9% from a year earlier. This was also above 4.2% expansion during the previous three months, according to central bank. The latest gross domestic product figure represents the strongest growth since the fourth quarter of 2022.

Bank Negara Malaysia said that private consumption remained robust in the second quarter, supported by strong private and public sector investments.

Exports expanded 8.4% in the April-June period after growing 5.2% the previous quarter as Malaysia continued to benefit from global companies' supply chain shifting. Private consumption increased 6.0%, up from 4.7% the previous quarter. 

By industry, the manufacturing sector grew at a 4.7% pace up from 1.9% the previous quarter. The services sector expanded 5.9%, up from 4.8% the previous quarter. Growth on the farm came in at 7.2%, up from 1.7% the previous quarter, driven by the oil palm industry. On the other hand, mining and quarrying slowed to 2.7% from 5.7%, due to weaker natural gas production.

The central bank has projected that tourism receipts will reach 22.4 billion ringgit ($5 billion) this year, up from 21.4 billion ringgit in 2023. Tourist arrivals are expected to be higher than pre-pandemic levels at about 27.3 million, driven by increased flight capacities and higher numbers of Indians and Chinese, who are now given visa exemptions.

Core inflation increased to 1.9%, driven mainly by higher housing and utilities inflation of 3.1%.

The ringgit strengthened against the greenback in the first half of the year, hitting a 16-month high and showing positive prospects for economic growth. The central bank reported that the Malaysian currency appreciated by 3.8% against the U.S. dollar year-to-date. 

Elsewhere in Southeast Asia, Vietnam reported 6.93% second quarter growth, while the Philippines' GDP expanded by 6.3%.

CIMB Treasury and Market Research expects growth momentum to remain robust and above 5% in the second half of 2024, raising its full-year GDP growth forecast from 4.9% to 5.2%, above the official target range of 4-5%. Key growth drivers are export and tourism recovery, strong approved investments and construction awards providing visibility to investments in the coming quarters, disposable income boosts from EPF Account 3 withdrawals and civil servant salary increases of 7-15% to be implemented over two phases – in December this year and January 2026.

Growth driven by private consumption is not sustainable. We need investments. It is translating approved investments to actual that our growth trajectory will be upward. So, it is good news but let’s not get carried away. And if you ask someone in B40 or M40, they cannot see the bright spot. They are still working on two jobs to put food on the table!

References:

Malaysia GDP growth accelerates to 5.9% in Q2, Norman Goh, Nikkei Asia, 16 August 2024

Malaysia economy’s 5.9% surge in Q2 underpinned by robust household spending, John Gilbert, The Sun, 18 August 2024

Tackling Gridlocks in the Klang Valley!

Despite having 23 toll highways across Klang Valley, traffic snarls continue for those living and working here. Selangor alone has 19 such highways, and more are in the pipeline. On July 4, Selangor infrastructure and agriculture committee chairman told the State Assembly that seven more highway projects were being considered in the state.

Traffic consultant Dr Rosli Azad Khan said while highways served as critical infrastructure for economic development and connectivity, they were not a long-term sustainable solution. Highways facilitate regional development, making remote areas accessible and promoting tourism. But their impact includes accidents due to speeding, social and environmental costs amongst others.

Highways and Transportation Sdn Bhd managing director said motorists in the Klang Valley should not be paying to use highways just to arrive at a bottleneck.

Source: The Star Graphics

Internationally the trend is towards intelligent transport systems. Taiwan, Japan and parts of Europe have turned to using the latest technology related to traffic management and it is time for Malaysia to do so too. We need to control traffic using digital technology and enhance the capacity of existing roads.

Then you have bus lanes – the latest is along Jalan Kelang Lama, an already congested road. You don’t need a Masters in Transport Planning to say it is a dumb idea to say the least! Why? It doesn’t solve the problem. Better to have motorcycle lanes and reduce deaths!

Most countries do not profit by providing public transportation systems but Mass Rapid Transit (MRT) and Light Rail Transit (LRT) must be further promoted. Some of the stations are not well patronised and it must be addressed fast. Try to find out why this is and if it has anything to do with the long waiting time for the last mile connectivity.

Simple, straight forward ideas can smoothen traffic flow. Secure feedback from road users. Build car park spaces outside the city. And then introduce congestion zone fares for cars during peak hours.

Reference:

Smarter ways of tackling gridlocks in Klang Valley, Sheila Sri Priya, The Star, 5 Aug 2024

PuTERA35: Another NEP Extension?

 The New Economic Policy (NEP), introduced in 1970, was a move undertaken to correct extreme economic imbalances present at that time. About 66% of bumiputeras were living below the poverty line (compared to 27% of the Chinese and 35% of the Indians). The mean household income of bumiputeras was only 65% of the national mean (Chinese: 149%; Indians: 115%). Furthermore, bumiputeras owned only 2.4% of the nation’s corporate equity and were mainly employed in the traditional rural sector (74%). With national unity as its aim, the objectives of the NEP were to eradicate poverty and eliminate the identification of race with economic function.

While the NEP has come under constant attack, the government has never published an overall report on how the NEP has fared on its objectives, what has been the unintended impact of the NEP and what form the NEP will take, if any, in the future. Data suggests that results have been mixed. Poverty has been significantly reduced, but not eliminated, at 3.6%.

Malaysians are still living below the poverty line. High incidences of poverty are still observed in states with a majority bumiputera population, such as Sabah (23%), Terengganu (15.4%) and Kelantan (10.6%). Bumiputera representation in key professions has certainly improved significantly and between 1970 and 2005 (pardon my dated stats), the percentage of bumiputera doctors increased from 4% to 39%, engineers from 8% to 46%, architects from 5% to 45% and accountants from 8% to 17%. However, bumiputera representation in senior management is only 31%. On the equity front, the various unit trust schemes introduced have successfully increased bumiputera shareholding in listed companies to 36%, but ownership of non-listed entities remains relatively small at 8%, reflecting the poor performance of bumiputera entrepreneur development programmes.

The question is, should the objectives of the NEP continue to be met as Malaysia embarks on new growth strategies?

Against the above backdrop, the Malaysian Government still thinks of a revamped NEP. The newly launched Bumiputera Economic Transformation Plan 2035 (PuTERA35), aims to significantly increase Bumiputera participation in high-skilled jobs and equity ownership over the next decade. 

PuTERA35, launched by the Prime Minister, outlines the government’s goal to have 70% of the country’s high-skilled jobs occupied by the Bumiputera, up from 61% in 2022. The plan also seeks to raise Bumiputera equity ownership, both by individuals and through Bumiputera-mandated agencies, from 18.4% in 2020 to 30% by 2035. PuTERA35 aims to lift the contribution of Bumiputera companies to the country's gross domestic product (GDP) to 15% in 2035, from 9.1% in 2022.

PuTERA35 encompasses three core areas, 12 growth drivers and 132 initiatives to advance and empower Bumiputera development towards making Malaysia a regional economic leader.

According to the Economy Minister, Bumiputera ownership in public listed companies stood at just 7% as of 2022, representing 62 companies out of the 945 listed on Bursa Malaysia. In terms of labour participation, the number of unemployed Bumiputeras totalled 387,800, or 61.5% of the national total of 630,400 as of 2022. Notably, 70.8% of unemployed Bumiputeras are from the youth demographic, aged between 15 and 30 years.

People are tired. A never-ending NEP saga. In the private sector, someone will resign, or the company will collapse if a plan or strategy fails. That’s not for the public sector. After more than 50 years of affirmative plans and more than RM1 trillion spent (this is just a rough estimate, no one writes on the cost of the policy), the targets are not met. Surely you can’t continue on a failed track. Couldn’t we do a Malaysia B40 Plan?

References:

Govt aims to have Bumiputera holding 70% of high-skilled jobs, a 30% equity ownership by 2035, Emir Zainul, theedgemalaysia.com,  19 August 2024

My say: Are NEP distributive goals still valid? The Editor/TheEdge, updated 21 August 2014

Average of 12 Motorcyclists Die Daily!

 In 2023, an average of 12 motorcyclists died daily on the road, accounting for approximately 75% of all road crashes, said Bukit Aman Traffic Investigation and Enforcement Department (TIED) director. Many factors cause motorcycle accidents such as riding dangerously or recklessly, road conditions and crashes resulting from other vehicles.

According to statistics from the Federal Traffic Enforcement and Investigation Department, Malaysia recorded 600,000 motorcycle crashes last year, with an average of 1,644 cases daily.

On Wednesday Aug 7, the Prime Minister expressed concern over the high accident rate among motorcyclists, which is linked to weaknesses in traffic law enforcement and issues related to road maintenance. Stricter enforcement would involve summoning and holding the parents of underage offenders accountable for their under-16 children’s traffic violations, as permitted under Section 31 of the Children Act 2001 and Section 19 of the Road Transport Act 1987.

Source: https://www.wikiimpact.com

The world of “Mat Rempits” will not go away – some are there for the thrills, others are looking for a purpose in life. And many have become e-hailers, but behaviour remains reckless. Could we have dedicated motorcycle lanes, just like buses?

 The one problem is enforcement. Even with a dedicated lane, many still want to ride in the car lane. An example is the KESAS highway – a dedicated lane is available for motorcyclists, but many choose the car lane for adventure?

Unless we tackle this problem in a wholesome manner, the death rate will not go away but rise!

Reference:

Average of 12 motorcyclist deaths daily, says Bukit Aman traffic police chief, Bernie Yeo, Focus Malaysia, 9 August 2024

Loneliness is a Major Public Health Problem!

Journalist Theara Coleman has declared 2023 “the year of the loneliness epidemic”. In May, the U.S. surgeon general, Vivek Murthy, said loneliness posed a public health risk on a par with smoking and drinking.

The pandemic, of course, intensified social isolation. Mental health declined, with research pointing to intensified isolation as a primary, if temporary, cause. Young people have been particularly hard hit. The transition to adulthood means you move from family support to peer support. But online learning and the sustained lack of contact substantially reduced the opportunities for many to develop those social and support networks.

Source: ttps://commons.wikimedia.org

In 2018, the UK government became the first in the world to make loneliness reduction an official parliamentary concern. Other nations, including Japan, have since followed suit, creating ministerial roles to find solutions. In 2023, the World Health Organization launched a new commission on social connection, framing loneliness as a “pressing health threat” on a global scale and social connectedness as a global priority. The BBC conducted a global survey of of 237 countries, islands and territories in 2018, dubbed the Loneliness Experiment. This found that younger people may be experiencing loneliness at higher rates than other age groups, which is confirmed by research in the US, New Zealand, Denmark and England.

In England, specifically, the annual Community Life survey shows that from 2017 to 2022, younger people aged 16-24 years old had the highest rates of feeling often or always lonely. While they were closely followed by the 25-34 years-old age bracket, for the latter group, these rates remained relatively stable across the five years.

For the younger group, however, the rates have increased by two percentage points: from 8% feeling often or always lonely in 2017-18, to 10% in 2021-22. What is apparent from this survey, is that loneliness follows a U-shaped trajectory. It tends to be highest among younger people, decreasing towards middle age and then starting to increase again for those aged 75+. While the pandemic led to increases in “lockdown loneliness”, for younger people, these trends for high levels of loneliness were already evident before the lockdown.

Research identifies three types of loneliness: emotional loneliness, social loneliness and existential loneliness. Emotional loneliness relates to a perceived lack of meaningful relationships, including intimate connections. Social loneliness is feeling as though your network of social relations is deficient in some way. It is a subjective feeling – a personal evaluation – about the gap between how much social contact we want and how much we actually have. In other words, you can have many friends and still feel lonely. Existential loneliness, meanwhile, focuses on a perceived disconnection from society at large. It is about feeling that your life has little meaning or purpose regardless of the presence of friends or intimate relationships.

Nobody wants to feel lonely. It is distressing. It effects on our wider mental health. Our physical health suffers too, with effects including poorer self-reported health, unhealthy lifestyles, increases in chronic diseases, higher cholesterol concentrations and diabetes.

Interestingly, however, research indicates that even older people report, retrospectively, that they felt lonelier when they were younger. So, what is it about being young?

Typically, teenage years and early adulthood is an unpredictable time – a period of uncertainty and transition. Going through puberty and education, becoming an adult, entering the workforce – not to mention finding a partner and starting a family – all involve complex and potentially risky decisions that can increase loneliness.

Risk and complexity do not only play out on a personal level. At this stage in life, you are also potentially more at risk of loneliness due to forces at work at a societal level, that are beyond your control.

Social media use over the past decade has been found to affect the quality of our relationships. Young people are also more likely to now work within the gig economy, which has heightened uncertainty and a lack of control within employment. Not being able to form work relationships in the way you might in more stable working environments can result in greater isolation.

The dual cost of living and housing crises have also hit younger workers the hardest. These too can affect decisions about where to live and whether to start a family, potentially triggering feelings of existential loneliness. When the world feels like a scary, unpredictable place, it is not surprising that young people feel lonely. Getting help when you feel overwhelmed by loneliness is important and being part of a social organisation, churches or youth groups can help reduce loneliness!

Reference:

Loneliness is a major public health problem - and young people are bearing the brunt of it, Julia Morgan and Vincent La Placa, The Conversation/Japan Today, 3 January 2024

GLIC Investments of RM120b Need Serious Review!

Directives by Ministry of Finance (MoF) to six government-linked investment companies (GLICs) managing RM1.8 trillion to invest RM120 billion over five years in potentially risky high-growth ventures is misplaced. Such investments should be through direct government funding via cutbacks and new revenue sources. And then channelled into one professional, government-owned investing company rather than several with different objectives.

This is especially so since the six - the Employees Provident Fund (EPF), Retirement Fund Inc (Kwap), Permodalan Nasional Berhad (PNB), Khazanah Nasional Berhad, Tabung Haji, and Armed Forces Fund Board (LTAT) - have different obligations to their different stakeholders.

The RM1.8 trillion invested by these GLICs is not liquid. Most of it is not available because they are already invested. To say that they are liquid is incorrect.

The second thing to note is that retirement funds EPF (RM1.14 trillion under management) and Kwap (RM170 billion) account for over 70 percent of total funds managed by the six (see table), with the EPF alone accounting for 62 percent.

They are obliged to preserve capital with stable longer-term investments such as quality bonds and stocks. They should not risk them in potentially high-risk new investments which are the preserve of entrepreneurs and companies who know the business. 

Catalysing growth in key economic sectors is not, the aim of retirement funds. It is to provide safe, stable returns to protect old-age savings.

In the case of Kwap, it is government-funded but it is to fill potential gaps in government pension obligations. Prudence dictates it must have similar criteria to pension funds.

PNB, which has over RM300 billion invested, was set up to increase the participation of bumiputera in key businesses. It too must preserve the quality and safety of its investments as a repository of savings of mainly bumiputera.

Similarly, both Tabung Haji (savings for pilgrims to go to Mecca) and LTAT (supplementary retirement savings for armed forces personnel) have obligations to their stakeholders to provide safe, steady returns.

The type of investments these funds are required to make are given in a MoF press release. “These investments are primarily directed towards high-growth, high-value industries such as the energy transition sector; advanced manufacturing especially in the semiconductor space; investments across all life cycles of firms from start-ups, venture capital to mid-tier companies; and finally to support listing of such companies.”

That’s a rather ambitious and ominous undertaking which carries tremendous risk. The only one among the six qualified to do this and has a clear mandate to do so by the government is Khazanah (RM126 billion in management), which over the years has built up expertise in investing.

The government should provide the RM24 billion a year to the fund to make RM120 billion over five years - it must come out of their own pockets from cuts in spending and/or new revenue sources. It must ensure that they have reasonable chance of success. It should not be taken out of retirement funds, which is irresponsible

You need to do the groundwork before you decide to invest what, where, how, how much and over what period. These things can’t be done by instructing GLICs to simply go out and invest - that’s a recipe for disaster.

Where is the feasibility study and plan? They need to come first and only then should a decision be made - for or against the proposition. What kind of Keynesian policy is this? Rakyat’s money used to boost the economy or enrich a certain elite group?

Reference:

Comment: RM120b GLIC investments need serious rethink, P Gunasegaram, 13 August 2024, Malaysiakini

Madani Housing Policy Could Hike Prices?

 The Real Estate and Housing Developers’ Association (REHDA) Malaysia has raised concerns regarding the government’s new policy requiring housing developers to allocate entire blocks for affordable “Madani” housing units. This move could inadvertently drive up prices for free market housing and impact those ineligibles for affordable housing.

The existing requirements vary across states, with Kuala Lumpur mandating that 20% of housing developments above five acres include Madani housing. The selling prices of these units’ range between RM150,000 to RM200,000, and the sizes are set at 700 square feet (sq ft), 750 sqft, and 800 sqft. Developers often rely on a cross-subsidy method to balance the costs of affordable housing. This practice keeps affordable housing prices below construction costs.

Source: https://www.wikiimpact.com

The suggested requirement of a full block or two need to be made into Madani housing instead of a set percentage, will naturally cause a further increase in the free market prices for those who are not eligible for affordable housing. This increase could impact middle-income groups, such as the M40, who do not meet the eligibility criteria for affordable housing.

Highlighting a supply and demand mismatch in the affordable housing market, a recent report from the National Property Information Centre (Napic), found that 28.6% of completed but unsold residential properties in Malaysia during the first quarter of 2024 were priced below RM300,000.

The association has called for the establishment of a national affordable housing trust, where developers would contribute a percentage of their gross development value (GDV) to the fund. This trust would be managed by a committee comprising representatives from the Housing and Local Government Ministry (KPKT), state authorities, and REHDA. The Government has yet to respond.

Many Government policies address an immediate issue, without a holistic approach to the problem. Housing is an issue for B40 or M40. It is time for the Federal Government to work with State Governments in sorting this out. And, why can’t the Government hear out suggestions from stakeholders?

Reference:

Madani housing policy could hike price for M40 and above, REHDA warns, Eynez Syazmeena, Focus Malaysia, 8 August 2024

Why Bully Hawkers?

 On 3 August 2024, a 300-strong team led by Kuala Lumpur City Hall (DBKL) plus the police and excavators went for back-street hawkers of Chinatown, KL. Videos online looked like a typhoon had swept through, leaving mangled masses of metal from broken stalls and awnings. Was this a helpful use of taxpayer-funded manpower?

Many find the back-lane hawkers in old Kuala Lumpur fascinating. It’s not just fancy hotels that offer “al fresco lunches”, these stalls do too – but on a budget. This earthy charm is part of the diversity that makes KL attractive, not just more skyscrapers and shopping malls that look the same anywhere in the world.

Source: https://en.wikipedia.org

Are we repeating the mistake of Singapore? They went on a crusade to “clean up” the streets of vendors in the 1980s only to belatedly realise… whoops! 

If the nooks and crannies behind Kuala Lumpur’s Petaling Street and Sultan Street are properly managed, it will add to the old city’s existing tourist attractions, such as the River of Life, Merdeka Square, Central Market, plus several mosques and temples.

But back-lane stalls are “dirty and messy”. Well, if a mamak restaurant is dirty, does DBKL demolish the whole shop? No, they impose fines or suspensions. It’s about regulation, not destruction. Anyway, the hawkers have every incentive to keep the back lanes clean because this is their place to “cari makan”.

Elena Mei Yun runs “KL - the hidden secrets bike tour” and she says, “The stalls do have licences. They are not illegal. They do not block the back lanes. Motorbikes and bicycles move through freely.”

There are many delicious food and drink stalls here, including Foo Hwa kopitiam, Sai Kee stir fry (dai chow), and Tian Tong “Seven-Decades noodles”. Other famous stalls are Back Lane Wantan Mee and Ah Sai mixed rice.

It took years of campaigning by dedicated heritage activists to change the mindset of people and the government that the “dingy and dirty” old shops in Penang and Malacca were precious antiques that should be restored and celebrated.

As a schoolboy in the 1960s and 1970s, I remember the stampedes of wheeled hawker stalls in Petaling Street whenever somebody shouted that DBKL had come. Suddenly, all the traders would jump on the bicycles attached to their carts and start pedalling like crazy. In their haste to escape, some would even just throw away things.

You see, they were licensed as mobile hawkers but not allowed to hang around Petaling Street, as that would be yes, you guessed it, “block traffic”!

The government spent RM11 million to transform the area into a pedestrian shopping arcade by installing Chinese arches and a green translucent roof to cover the street. Thanks to that commonsense decision, Petaling Street is now a proper and popular tourist attraction - even if sticklers for legality may fuss and fume about the “not-so-original” watches or handbags sold there.

In May, Petaling Street was ranked as the “sixth coolest street in the world” by global entertainment magazine, Time Out. This was for its “unique blend of cultural heritage and trendy new hangout spots”.

If the authorities can adopt a similar open-minded view about what tourism is, the back lanes of Chinatown can also be beautified, perhaps with street art.

The best example of a back lane reborn is Kwai Chai Hong or Demon’s Alley at the tail end of Petaling Street. It got its name because drug dealers and prostitutes used to hang out there. Refurbishment costing RM1.5 million in 2019 saw this former crime den rejuvenated with six wall murals depicting life in the 1960s.

This has helped transform the surrounding area of run-down shops into many Instagram-worthy eateries such as Merchant’s Lane (which was a former brothel). Property prices are rising too.

So, will DBKL and the Madani government use some sense. When it was Covid or just after it, traders could do their sales almost anywhere they wished. It was laissiz-faire. Then the economy grew, things got better and now we have lost our humanity and common sense.

Reference:

Comment: Stop bullying humble hawkers, Andrew Sia, Malaysiakini, 9 August 2024

Diesel Price Hike Impact on Inflation is Less than Expected

Malaysia’s headline inflation, which came unchanged year-on-year at 2% in June, is projected to remain steady for the rest of 2024, on the muted impact from the recent diesel subsidy rationalisation, say analysts. The 2% increase in consumer price index (CPI) in June was lower than the 2.2% increase predicted in a Bloomberg survey.

Malaysia floated retail diesel prices on June 10, in an effort to address its ballooning subsidy bills and curb smuggling activities.

The decision put a spotlight on its impact towards prices. Efforts to curb price shocks include targeted subsidy to approved transportation fleets and logistic companies.

Following the lower-than-expected CPI, UOB Research has revised its inflation projection to 2% in 2024 (from 2.6% previously). The research house said it has “recognised a much smaller-than-anticipated impact from the diesel subsidy rationalisation and benign inflation reading of an average 1.8% in the first half of 2024 (1H2024).

However, inflation risks are still tilted to the upside pending RON95 fuel subsidy rationalisation, the effects of Employees Provident Fund (EPF) withdrawals from recently introduced Account 3, and salary hikes for civil servants by year end.

HSBC Global Research also described the June CPI print to have delivered “a downside surprise” despite the diesel subsidy rationalisation. The research house expects Malaysia’s inflation to fall within Bank Negara Malaysia’s (BNM) forecast of between 2% and 3.5% this year. It has forecast Malaysia’s CPI in 2024 to be at 2.4%, according to its past reports. The direct impact [of diesel subsidy] should be limited, as diesel only accounts for 0.2% of the CPI basket. The indirect impact, which is the primary concern, appears to have been contained too. This is due to the mitigating impact the government has put in place in tandem with the removal of diesel subsidies.

RHB Research said that the direct impact of diesel subsidy float in Peninsular Malaysia would be “marginal”. The research house maintained its headline inflation projection at 2.6% in 2024.

Subsidies will continue for most of the diesel-powered commercial vehicles and for public transportation and most of Malaysia’s motor vehicles consume petrol [accounts for 90% of the vehicles registered with Malaysian Road Transport Department] as their primary fuel choice versus diesel users at around 7%.

Meanwhile, MIDF Research has kept its headline inflation forecast of 2.7% in 2024. The higher-than-street forecast is in anticipation of gradual inflation pickup in Peninsular Malaysia in 2H2024 from the diesel subsidy retargeting. As for Sabah and Sarawak, MIDF expects minimal transportation price pressure as diesel prices remain unchanged.

This is good news for the average consumer. It is when RON95 moves up that the gyrations will be felt. The Government may defer this to 2025 or later.

Reference:

Diesel price hike impact on inflation less than expected, say analysts on June CPI surprise, Anis Hazim, TheEdgeMalaysia, 24 July 2024

Practice 8 Daily Habits

If you think your best years are behind you, think again. The habits enumerated below by Lachlan Brown, says your golden years could be more productive and fulfilling yet.

1. Embrace Lifelong Learning

Individuals who understand that growth doesn’t stop when you hit a certain age are living longer. They’re always seeking to learn something new, whether it’s a new skill, a new language, or even a new recipe. This constant thirst for knowledge keeps their minds sharp and their spirits high.

Embracing lifelong learning is about staying curious and open-minded. It’s about understanding that no matter how old you are, there’s always something new to discover. If you want to excel in your later years, start by cultivating a love for learning today.

Source: https://commons.wikimedia.org

2. Prioritize Health and Fitness

Those who achieve more in their 60s and beyond have an unwavering commitment to their health and fitness.

3. Practice Mindfulness Daily

The third habit that keeps people thriving in their later years is the practice of mindfulness.

Mindfulness is all about living in the present moment, fully aware and engaged with whatever you’re doing. It’s about letting go of past regrets and future anxieties and just focusing on the here and now.

4. Foster Strong Social Connections

Psychology has long emphasized the importance of social connections for our overall well-being. The same principle applies to those who are thriving in their 60s and beyond. They understand the value of nurturing strong, positive relationships.

Maintaining social connections provides emotional support, combats feelings of loneliness and isolation, and even contributes to physical health. Research has shown that individuals with strong social networks tend to live longer, have lower rates of anxiety and depression, and even have stronger immune systems.

So how can you foster these strong social connections? Start by reaching out to friends or family members regularly. Join clubs or groups that share your interests. Volunteer in your community. Remember, it’s about creating meaningful engagements with the people around you.

5. Embrace Failure

Now, this one might seem a bit counter intuitive. After all, aren’t we supposed to avoid failure?

People who thrive in their 60s and beyond have a different perspective. They see failure not as a setback, but as a stepping stone towards success. They understand that failure is part of the process. It’s an opportunity to learn, to grow, and to improve. They don’t let fear of failure hold them back; instead, they embrace it, knowing that it’s the best teacher they could ask for.

6. Cultivate an Attitude of Gratitude

Another powerful habit practiced by those who thrive in their later years is cultivating an attitude of gratitude. These individuals make it a point to acknowledge the good in their lives. They’re grateful for the big wins, sure, but they also appreciate the small things – a sunny day, a good book, a delicious meal. This habit of gratitude enhances their overall happiness and well-being.

7. Find Purpose and Passion

Finding one’s purpose and passion is a cornerstone of a fulfilled life, no matter the age. For those thriving in their 60s and beyond, this often translates to engaging in activities that not only bring them joy but also contribute to a greater good.

Finding your purpose doesn’t necessarily mean you have to make dramatic changes in your life. It can be as simple as spending more time on your hobbies or volunteering for a cause you care about. The key is to engage in activities that align with your values and bring you joy.

8. Practice Resilience

The final habit of people who thrive in their 60s and beyond is the practice of resilience.

Life is unpredictable. Challenges, setbacks, and disappointments are inevitable. But what sets successful individuals apart is their ability to bounce back from these hardships.

Resilience isn’t about avoiding difficulties or pretending they don’t hurt. It’s about facing them head-on, learning from them, and using the experience to grow stronger.

Resilient individuals are able to maintain a positive outlook and stay focused on their goals, even in the face of adversity. They see challenges as opportunities for growth rather than insurmountable obstacles.

Final thoughts

When we talk about thriving in our 60s and beyond, it’s important to remember that it’s not just about reaching a certain age or achieving specific milestones. Rather, it’s about the journey. It’s about cultivating habits that enrich our lives, enhance our well-being, and allow us to continue growing and learning.

So, as you move forward, remember to embrace these habits. Practice resilience, cultivate gratitude, foster strong social connections, and never stop learning. Because no matter how old you are, every day is a new opportunity to grow, to learn, and to thrive.

Reference:

People who achieve more in their 60s and beyond than they ever did in their youth usually practice 8 daily habits, Lachlan Brown, 31 July 2024

Ringgit rises to near 11-month high against US dollar!

The ringgit continued its uptrend recently, closing at a near 11-month high of RM4.58 against the US dollar on 31 July 2024. An analyst said this was driven by the Bank of Japan’s (BOJ) decision to raise interest rates and the anticipation of a Federal Reserve interest rate cut in September.  The ringgit soared 315 basis points to 4.5885/5925, compared to the greenback’s closing of 4.6200/6235 on Tuesday (July 30).

UOB Kay Hian Wealth Advisors head of investment research said the BOJ’s move signalled confidence in Japan’s economic recovery, and it could bolster investor confidence in Asian currencies, if the positive sentiment extends to global markets. 

Attractive interest rates in Japan might encourage investors to seek higher yields elsewhere, including in emerging markets like Malaysia. As investors diversify their portfolios, capital inflows into Malaysian assets can further strengthen the ringgit.

The Federal Open Market Committee (FOMC) is expected to announce their decision soon, with most consensus projecting no change in the Fed Fund Rate.

Meanwhile, the local note traded mostly higher against a basket of major currencies. The ringgit rose against the British pound to 5.8875/8926, from 5.9427/9472, and was higher against the euro to 4.9680/9723, from 5.0044/0082. However, it fell against the Japanese yen to 3.0515/0545, from 2.9845/9870. 

It rose against the Indonesian rupiah to 282.1/282.5, from 283.3/283.7, improved against the Singapore dollar to 3.4273/4306, from 3.4370/4398, and inched up against the Philippine peso to 7.86/7.87, from 7.87/7.89 previously. The ringgit slipped vis-a-vis the Thai baht to 12.8717/8880, from 12.8319/8470.

Whatever the case, OPR remaining unchanged will not help the ringgit. If you want the ringgit to appreciate significantly (to RM4.0 to USD1) the OPR must move up.  But that hampers GDP growth? True, that has an impact. But food imports will soar if ringgit depreciates. So, BNM must balance its interest rate policy and  growth for a desired ringgit exchange rate.

Reference:

Ringgit rises to near 11-month high against US dollar on July 31, 2024, Karina Imran, Bernama / TheEdgeMalaysia, 1 August 2024

Penang’s GDP drops below Malaysia’s average?

A Penang DAP assemblyman raised concerns over the negative impact of the global reduced demand for electrical, electronic and optical products on the state’s gross domestic product (GDP) growth.

The Pulau Tikus assemblyman said the state’s manufacturing sector recorded a negative growth of -0.5 per cent in 2023. Citing data obtained from the Department of Statistics, Penang has dropped from being in the country’s top position in 2022, with 13.3 per cent of GDP growth to fifth place in 2023 with only 3.3 per cent. Penang’s GDP growth in 2023 was lower than the national average of 3.6 per cent.

Source: https://en.wikipedia.org/wiki/Penang

The increase in Penang’s construction sector also reduced the impact of the decline in the manufacturing sector. The construction sector recorded 23.6 per cent growth in 2023 as compared to 7.9 per cent in 2022.

The construction projects that contributed to the sector was the reclamation of Silicon Island which started in September 2023. According to the assemblyman, the project has so far injected RM295 million into the local economy. It has also created 373 jobs for Malaysians, of which about 50 per cent are Bumiputra.

The state’s 2023 GDP per capita was recorded at RM 72,586, behind two federal territories, Kuala Lumpur (RM 131,038) and Labuan (RM 83,596). Diversifying the economy and working with electrical and electronics companies are, at least, two means to further enhance growth. Tourism, urban farming, solar power generation are other areas that may need focus.

And for the record, Penang’s GDP (nominal) of RM115 billion (2023) has been in 5th place over several years.

Reference:

DAP rep rings alarm on world’s shrinking appetite for electrical and electronic goods as Penang GDP drops below Malaysia’s average, Opalyn Mok, Malay Mail, 1 August 2024

Who Is Responsible For The Climate Crisis

 

And the hypocrisy of it all? The West and those who dominate the world economy want the global south to reduce carbon emissions. Can you beat that?

Tax these companies 100% on their emissions and fund the global south for keeping forests and making efforts to reduce their own fossil fuel use.

Reference:

Who is responsible for the climate crisis? @THE.COMMONSEARTH

Malaysia’s Population Up!

 Malaysia’s total population now numbers 34.1 million. This is according to data from the Department of Statistics Malaysia (DOSM) (in its Current Population Estimates 2024). The growth of 0.7 million people was in comparison to 33.4 million recorded for the same period last year.

Although the population has grown overall, the composition of citizens has dipped in comparison to foreigners. The department attributed the increase in the composition of non-citizens to the reopening of Malaysia’s borders on April 1, 2022 and the implementation of the Employment Recalibration Programme 2.0 in January 2023.

The composition of citizens in 2024 decreased from 91.1 per cent (2023) to 90.0 per cent, while non-citizens increased to 10.0 per cent from 8.9 per cent over the same period, according to the report.

The number of Malaysia’s citizens is shrinking compared to foreigners in 2024. — Infographic from X/Department of Statistics Malaysia

As citizens made up 30.7 million of the population, the report found that Bumiputeras dominated the citizens’ demographic at 70.4 per cent, an increase from last year’s 70.1 per cent. This includes the peoples from Sabah and Sarawak. And if we exclude them, the Malay population is probably in the lower end of 60%. That has implications on politics and economics.

Meanwhile, the composition of the Chinese and Indians decreased from 22.6 per cent and 6.6 per cent respectively in 2023, to 22.4 per cent and 6.5 per cent in 2024 while Others remained at 0.7 per cent.

As citizens made up 30.7 million of the population, the report found that Bumiputeras dominated the citizens’ demographic at 70.4 per cent, an increase from last year’s 70.1 per cent. — Infographic from X/Department of Statistics Malaysia

Although Selangor was the most populated state making up 21.6 per cent of the nation’s population, it came in fifth as one of the most densely populated states at only 927 people per square kilometre.

In contrast, Kuala Lumpur and Putrajaya have 8,518 and 2,440 people per square kilometre respectively.

As citizens made up 30.7 million of the population, the report found that Bumiputeras dominated the citizens’ demographic at 70.4 per cent, an increase from last year’s 70.1 per cent. — Infographic from X/Department of Statistics Malaysia

Although Selangor was the most populated state making up 21.6 per cent of the nation’s population, it came in fifth as one of the most densely populated states at only 927 people per square kilometre. — Infographic from X/Department of Statistics Malaysia

The implications of the above developments are in education, health, security and welfare. Foreign, non-citizens are treated differently and have limited access to basic education and health. They are also seen as a security threat. We need to show more compassion to these people who are gainfully employed and provide services that citizens may shy away from. The ones who suffer most are children and women!

Reference:

Malaysia’s population up to 34.1 million in 2024, but govt data shows slight uptick in foreign composition, Zaf Seraj, Malay Mail, 31 July 2024

Put the Field Back in Hockey?

To people of the Indian subcontinent, hockey refers to ‘Field hockey,’ and is distinct from ‘Ice hockey’. Hockey in the Paris Olympics is played on Astroturf.

Field hockey was introduced to India by the British during the colonial era. Indians soon took to the game and were quickly dominating the English teams, and indeed, everyone else.  Indian players were famous for their skilful dribbling, clever passing, body swerves and general artistry. 

Source: https://en.wikipedia.org

In the Summer Olympics, India was dominant between 1928 and 1956, winning gold in Amsterdam, Los Angeles, Berlin, London, Helsinki and Melbourne. Another Indian gold medal in Tokyo (1964) was sandwiched between the two Pakistani triumphs of 1960 and 1968.

Cracks in the pre-eminence of subcontinental hockey became evident in the 1970s. During this period, the Indian victory in the World Cup final over Pakistan in 1975 proved to be a high point. By the time the Moscow Olympics in 1980, India was no longer a dominant force.  That year, although India did win its eighth (and last) Olympic gold medal in hockey, it perhaps lacks the lustre of the previous seven golds, as many of the best teams of that era boycotted the tournament for political reasons.

All sports evolve over time. Technologically advanced countries probably analysed the all-conquering Asian hockey teams and developed means to counter them. Gradually, the Europeans and Australians began to catch up to the subcontinental teams and eventually surpass them.

Furthermore, numerous changes were implemented in the rules of hockey.  Some of these were ostensibly to speed up the game and make it more visually appealing to television audiences; although the result may have been detrimental to the Indians and Pakistanis.  A major change was the switch from natural to synthetic surfaces that were inaccessible to many players in these countries.

In ‘lawn’ tennis, surfaces vary depending on the tournament.  Two of the major championships, the Australian Open and the US Open, are now played on synthetic courts. Wimbledon, on the other hand, is played on grass; whereas the French Open is conducted on clay.

Many giants of the sport have had limited success in adapting to courts that were relatively unfamiliar to them. For instance, the American stars, Jimmy Connors and Pete Sampras were unable to conquer the red clay of Roland-Garros at singles, although they had great success at the other major tournaments. A Wimbledon title eluded Ivan Lendl, though he won multiple major tournaments on surfaces other than grass. All sports change over time. Modern-day tennis players use racquets with large sweet spots and can generate incredible pace and topspin. 

What’s the above got to do with field hockey? Everything. You could change with changes in rules and turfs or develop separate rules for different artificial turfs. Meanwhile, look at how to attract youngsters.

1. Allow the use of different playing surfaces

A talented young hockey player in rural setting may not have access to artificial turf. The skills needed to succeed on a natural surface are different from those required for synthetic surfaces.  By the time the player is proficient enough to be selected for a training facility with access to artificial surfaces, new skills will have to be learned and old ones unlearned, putting the youngster at a disadvantage.

The teams that can adapt to different types of surfaces will be more successful as in the case of a tennis player who is able to win all four major tournaments and earn the coveted Grand Slam, or a cricket team that wins at home and abroad.

2. Reduce the chance for injury and the need for protective equipment

While playing hockey on uneven surfaces and indeed on any surface, perhaps we can take a step back for reasons of player safety and ensure that the ball remains on the pitch, or not more than a few inches above the ground, except when ‘scooped’.  Strong enforcement of the old rule of ‘sticks,’ whereby a hockey stick may not be raised above shoulder level when taking a shot, would also reduce the likelihood of injury.

3. Encourage the scoring of more field goals

Modifying rules to enable the scoring of more field goals and reducing the emphasis on ‘corners’ may well make the game more exciting.  

4. Look after the interests of hockey players in the developing world

Many in the developing world don’t get the same opportunities as those in developed nations. For this FIH needs to secure funds for players to remain committed in the developing world.

5. Identify talent early

A scientific approach to identifying and grooming promising players is essential. In the highly competitive world of American football, players are constantly evaluated for parameters pertinent to that sport.  Very often, but not always, elite athletes end up being exceptional football players. Conversely, some of the greatest professional players have not necessarily been the best athletes.  

It’s time Asian nations developed hockey according to their needs, changed the rules and promoted it for their youths. The hegemony of the West must stop. The ideal is to perhaps follow the path of tennis, with different surfaces for different tournaments. Meanwhile, Asian countries will remain disadvantaged in the Paris Olympics.

Reference:

Shouldn’t we put the field back in Hockey? Dr Tilak Ponappa, Star of Mysore, 

28 November 2022

Budget 2025: New Public-Private Partnership Masterplan?

The Ministry of Finance (MOF) said it was considering introducing a new Public-Private Partnership (PPP) Masterplan in the upcoming Budget 2025. This is scheduled to be tabled in Parliament on Oct 18. The new PPP Masterplan will be aimed at encouraging private investments to fund the development for crucial public infrastructures. The new plan will also aim to achieve more effective sharing of risks and returns with the private sector to improve public services.

In 2022, Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced in his Budget 2024 speech that the government will focus on public-private-philanthropy partnerships (PPPP) to implement projects for the rakyat.

Source: https://ms.wikipedia.org

Malaysia introduced the Privatisation Master Plan in 1991 to outline the private sector participation in public infrastructure development. Meanwhile, in 2021, former prime minister Datuk Seri Ismail Sabri Yaakob announced the Public Private Partnership (PPP) 3.0 model under the 12th Malaysian Plan.

MOF, in the pre-Budget 2025 statement, also noted that with Malaysia’s tax revenue currently standing at a low 12.6% of gross domestic products (GDP) in 2023 compared to its Asean counterparts. MOF wants to expand the tax base.

Budget 2025 will require measures to broaden the tax base, continuously ensure a progressive tax system, reduce tax leakages and enhance tax compliance, according to MOF. Budget 2025 will also initiate measures to better manage public expenditure in order to effectively and efficiently support Ekonomi Madani aspirations.

The government has yet to introduce the high-value goods tax which was announced in Budget 2024. Besides this, the global minimum tax (GMT) was also announced in 2023. The MOF on July 18 said that it will implement the GMT on revenue exceeding €750 million (RM3.82 billion) starting in 2025, with a 15% tax rate.

Budget 2025 will continue to explore areas to optimise budgetary allocations, including the defence industry, said the MOF, noting that this will address procurement weaknesses and promote the development of a domestic defence industry. Budget 2025 will continue to support energy transition efforts through a legislative framework that encourages investment while safeguarding the public interest. The government has launched the National Energy Transition Roadmap with six key drivers, namely the energy transition, renewable energy, hydrogen, green mobility and carbon capture utilisation and storage.

Recognising the vital role of micro, small and medium enterprises in the economy, the MOF said Budget 2025 will formulate financing schemes, including funds under the development financial institutions as well as co-funding and guarantee schemes with private financial institutions.

Meanwhile, to further enhance Malaysia's tourism industry, Budget 2025 will outline measures to elevate the country’s unique offering and better connectivity, to increase the spillover effect from tourism activities that will benefit local communities, said the MOF.

Beyond statements, the MOF should work with stakeholders on new tax revenues and try to reduce income inequalities. A case in point is the remuneration of bank CEOs and bank employees. It (remuneration for a CEO) is probably a 100x or more than the average earnings per year of an employee.

Reference:

Budget 2025: MOF mulls new public-private partnership masterplan, expansion of tax base, Anis Hazim, TheEdgeMalaysia, 30 July 2024

China Struggles to Entice Foreign Tourists?

Since December, China has granted visa-free entry to tourists from several countries, including France, Germany, Italy, Spain, Australia, New Zealand and Poland. Southeast Asian countries including Thailand, Singapore and Malaysia have also struck agreements with Beijing to facilitate visa-free travel. Coming out of Covid, visas are just another level of complexity for travellers. So, to remove that complexity is a good move.

The recent surge in tourism comes after China closed its borders in early 2020 to combat the Covid-19 pandemic and kept them shut until the start of 2023. But even with the visa-free policy boost, far fewer tourists are coming to China now than before the pandemic.

According to official tourism data, China received a total of 49.1 million overseas visitors in 2019, with more than a third coming in for sightseeing and leisure. Revenue from international tourism reached US$131.3 billion that year.

In the first half of 2024, the number of foreign nationals entering China was far lower at 14.6 million. Among them, 8.5 million entered visa-free, accounting for just over half of the total, according to the National Immigration Administration. International tourism revenue data for China has not been published since 2019.

However, China needs to do more than just waive visas to encourage foreigners, experts say. Geopolitical tensions, a government that tolerates no dissent and China’s sometimes belligerent portrayal in some Western media have kept some tourists away. China must also compete for attention with Japan, which is experiencing a boom in tourism thanks to its weak yen.

Another potential hurdle for foreigners is China’s vast digital infrastructure. Paying for everything from transport tickets to restaurant bookings to tourist site admissions is done via QR codes linked to local payment apps such as WeChat and Alipay, making daily interactions difficult for holders of foreign bank cards.

China has allowed foreign bank cards to be linked to Alipay and WeChat, but the system and language barriers remain daunting.

There are lessons for us to understand. We need friendly, Mandarin-speaking counter/immigration staff, payment systems that are user-friendly and a welcoming attitude of those involved in tourism. Our tourism receipts in 2019 was Rm86.1 billion and in 2023 it was RM71.3 billion. This was 17.2% below the 2019 level.

Reference;

China struggles to entice foreign tourists despite campaign, Reuters, 17 July 2024

Echoes of Defeat: Five Things Anwar Must Do!

Alarm bells at Sungai Bakap and other places must be heard and reflected. Clearly, many among the ethnic minorities are no longer willing to give PH their undivided support. But because many of them feel they do not have a political alternative they are comfortable with; they may stay out of by-elections.

The ethnic majority, the Malays, have no such qualms about voting for the opposition, so they switched their support from Umno or PH to Perikatan Nasional. It is not a PN triumph at Sungai Bakap but a PH collapse. 

Source: https://www.wikiimpact.com

So here are some suggestions put forward by Anil Netto for Anwar to recapture support.

(i) Don’t take reforms for granted

Speed up the pace of institutional reforms. Remove non-performing ministers, including the one for education. 

Are candidates for key positions reviewed by a parliamentary committee before they are appointed? Try to understand Bersih chair’s F score and do something about those institutional and electoral reforms. Work with civil society instead of treating them like the ‘enemy’.

(ii) Focus on People’s Agenda

Raise the people’s quality of life, especially the lower-income group of all ethnic backgrounds. Revamp the education curriculum, hire the best teachers and increase public confidence in government schools.

Reduce the long waits in government hospitals. In private conversations, many complain bitterly about long waiting times in general hospitals. These things matter in shaping public opinion. So, review the salaries of specialists and doctors to stem the brain drain.

To further ease the pressure on public hospitals, pay attention to long-neglected preventive healthcare. Get manufacturers to cut down on excessive sugar and salt in processed food and drinks, maybe the ‘sugar” tax be increased and/or widened. Educate the public about boosting natural immunity with a balanced diet (fibre, fruit and vegetables) and exercise. Consider the role of traditional medicine and remedies.

The removal of blanket subsidies in favour of targeted subsidies looks set to raise inflation. A sharp hike in fuel prices will surely increase the cost of living and hurt the people. So, go easy on this. Take a more gradual approach. Why not remove subsidies only for those with luxury cars or cars with engines above, say, 2,000cc for now? Anyway, are we not a net exporter of oil? So where does the surplus go?

Meanwhile, improve public transport and “first mile, last mile” connectivity.

Introduce wealth taxes, Tobin tax and progressive or excess profit taxes. 

Raise the minimum wage for workers. RM1,500 is simply not enough. Work towards a minimum living wage (above RM2,500). Look into the struggles of the working class, including the plight of delivery personnel.

Focus on boosting food security for the nation. Stop the forced evictions of farmers from their farmlands.

And tackle the problem of youth unemployment by providing skills training to make them more independent.

(iii) Stop Kowtowing to the Bigots

Anwar used to say: “Anak Melayu anak saya, anak Cina anak saya, anak India anak saya, anak Kadazan anak saya dan anak Iban anak saya.”

But can he say that with a straight face now? And if he can, will the people accept what he says now? The PM needs to become more inclusive and grow a spine – based on his own Madani (civil and compassionate) principles.

In a string of recent controversies (KK Super Mart, cardiothoracic specialists, student quotas), the government’s stand (or lack of it) disappointed many among the minorities. As for the ethnic Malays who may still be feeling insecure, empower them through education by revamping the quality of education and the curriculum and providing them more skills training. Improve the conditions in rural schools and schools in depressed areas. And try to regulate the Madrasah schools and the sekolah tahfiz.

It is time for Anwar to try out new, more inclusive strategies. Don’t meekly give in to the loudest or shrillest voices. Cut the rhetoric and walk the talk. Imagine an enlightened, progressive Malaysia and work towards that vision.

(iv) Fight Corruption from the Top Down

Yes, we have seen the Malaysian Anti-Corruption Commission being more active of late. But has it captured the public imagination or is the public still cynical or sceptical? Perhaps that cynicism is due to the lack of big fish hauled up or a perception of selective action.

The rot starts from the top. Make the MACC truly independent so that it can rein in the sharks – the corrupt politicians and business leaders who are dragging Malaysia down. Cleanse the government and civil service – especially at the highest levels.

(v) Stop Relying so Heavily on Foreign Investments

Yes, the country needs investments. But consider domestic investments and especially small and medium businesses as well. Encourage and support local entrepreneurship instead of relying too much on foreign investment.

If Malaysia is to have a vibrant people-powered democracy, it needs to shake off the influence and grip of Big Tech, Big Pharma and Big Capital. The global firms are driven by huge profits and shareholder returns with tentacles around the world.

Many political leaders and MPs may have lost touch with the masses. After all, with their high salaries and allowances (and fat – perhaps multiple – pensions!), they can afford comfortable lifestyles. Many are chauffeur driven in fancy cars, so they don’t see what ails our public transport system. Can you travel without your police escorts and sirens? Many can afford prompt specialist attention at private hospitals, so they don’t see the long queues in government hospitals. They send their children to private or international schools. Rising food and fuel prices won’t dent their budgets.

When politicians lose touch with the masses and don’t appear to support the People’s Agenda, the masses can sense it. That is why the privileged Sunak and his well-heeled colleagues were booted out. While the working class in Britain were struggling, the number of billionaires in the UK soared. 

So, before the masses rise, please take the “wind out of the sails” – solve them and if it means ejecting a political party from PH then just do it! Have a spine Brother Anwar!

Reference:

Echoes of defeat: Five things Anwar must do to win back Malaysia’s trust, Anil Netto, ALIRAN, 9 July 2024

US inflation broadly Cools.

 US inflation cooled broadly in June, driven by a long-awaited slowdown in housing costs. This provides confidence for Federal Reserve (Fed) officials to cut interest rates. The so-called core consumer price index (CPI) — which excludes food and energy costs — climbed 0.1% from May, the smallest advance since August 2021, Bureau of Labor Statistics figures showed. The year-over-year measure rose 3.3%, also the slowest pace in more than three years, according to data out Thursday.

Economists see the core gauge as a better indicator of underlying inflation than the overall CPI. That measure fell 0.1% from the prior month — the first decline since the onset of the pandemic, dragged down by cheaper gasoline — and 3% from a year ago.

In addition to slower rental inflation, the costs of other services like airfares, hotel stays, and inpatient hospital care all declined from a month earlier. For goods, new and used vehicle prices led broader decreases in core goods.

The figures add to evidence that inflation has resumed its downward trend after a flare up at the start of the year, while broader economic activity appears to be slowing. And unemployment rose for the third straight month. That should be good reason also to cut interest rates sooner than later.

Meanwhile, a sustained decline in the price of goods over most of 2023 has largely been providing some relief to consumers. So-called core goods prices, which exclude food and energy commodities, fell in June for a fourth month.

Prices of new vehicles declined for a sixth month, and several apparel categories dropped as well. The cost of household furnishings has fallen nearly every month for the past year. There are also signs that consumers are growing increasingly sensitive to higher prices. 

A separate report, combining the inflation data with figures on wages published last week, showed real earnings growth has been positive for 2023.

So, what does it mean for us in Malaysia? If the Fed Fund rate is reduced, then the differential in nominal interest rates between Malaysia and U.S. will narrow and prospects for a Ringgit appreciation becomes real. Imported prices will drop and we will have a better trade surplus, hopefully. Food prices could stabilise or may reduce with an improved ringgit.  (Our annual food import alone is RM70-75 billion) That’s good news for many sectors and a fillip for the economy.

Reference:

US inflation broadly cools, bolstering case for Fed rate cut, Molly Smith / Bloomberg

11 Jul 2024