Friday, 4 July 2025

Waste Colonialism!

Industrialised countries not only outsource a majority of their often environmentally hazardous production processes to poorer countries, they also dispose of considerable amounts of waste there. The consequences are disastrous for the affected regions – and for the whole world. That’s waste colonialism. 

Part of Europe’s electronic waste lies at the huge Agbogbloshie electronic-waste dump in Ghana. Fires are burning everywhere, sending toxic fumes over mountains of old refrigerators, computers and televisions. “Toxic city” is the name given to the dump that covers 16 square kilometres in Ghana’s capital Accra. An estimated 40,000 people live there. 


Source: https://en.wikipedia.org

Most of the waste exported from rich countries is largely due to the work of civil-society organisations, which have drawn increasing attention to the issue in recent years. In addition to e-waste, plastic waste is a particular focus. 

In target countries, the waste is by no means always recycled, but all too often burned, landfilled or dumped. These practices cause harmful emissions, pollute the water and the soil and leave plastic traces in the entire environment. Various tests of soil and water that Greenpeace has conducted in Turkey have shown how the illegal landfilling and burning of plastic waste from the EU leads to excessive concentrations of substances that are very hazardous to health, such as chlorinated dioxins and heavy metals. 

The export of plastic waste is not objectionable in itself. It can certainly be part of regional waste management in border areas. Smaller countries also do not always have access to the entire range of the necessary sorting and recycling facilities and are therefore dependent on exports. If, however, target countries have lower waste-disposal standards and less developed infrastructure, the risk of improper disposal increases. In these cases, country organisations and multilateral institutions must regulate the shipment of plastic waste more strictly and prohibit export to poorer countries. 

The EU, among others, has done too little in this regard. For many years, China was the main recipient of its plastic waste. Since the country largely closed its borders to plastic waste in 2018, however, more waste has remained in Europe, and exports have shifted to Southeast Asia and Turkey. In 2022, the EU exported 1.1 million tonnes of plastic waste to non-EU countries. Every day over 3 million kilogrammes of plastic waste leave the EU – 31 % goes to Turkey, 16 % to Malaysia, 13 % to Indonesia and nine percent to Vietnam. Great Britain, Australia, Japan and the USA also ship waste to poorer countries. 

The “Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal” regulates the export of waste as an international environmental agreement. It has so far been signed by over 180 countries and, since 2019, also contains stricter requirements for the shipment of plastic waste. The EU has adopted some of these regulations. They have been in effect since 1 January 2021 as part of the EU’s waste shipment regulation, which forbids the export of unsorted plastic waste from the EU to countries that are not members of the EU or the OECD. The export of mixtures of various plastics into countries like Malaysia or Indonesia is therefore restricted. 

Stricter regulations would have positive effects in both exporting and importing countries. In the latter, they would reduce the disastrous ecological and social consequences associated with the import of plastic waste. Importing countries’ local recycling capacities would also not be taken up by waste from abroad. In exporting countries, on the other hand, there would be greater pressure to prevent waste and expand recycling structures. 

It would be an opportunity to establish a global circular economy in which external costs are no longer outsourced to economically disadvantaged countries. The global community must seize this opportunity if it wants to avoid further exacerbating the climate and biodiversity crisis through its waste. 

Reference:

The rich countries practice waste colonialism, Michael Jedelhauser,, D+C, 23 May 2023

Thursday, 3 July 2025

Jobs AI Will Replace by 2030 (Part 2)

Artificial Intelligence (AI) is no longer a buzzword; it’s rapidly becoming a fundamental part of how industries operate. From streamlining workflows to optimizing production, AI’s influence is growing faster than many of us realize. 

Automation is a much greater threat to some jobs than it is to others. Comprehending the reasons behind this phenomenon can provide insight into the prospects that various industries face. 

1. Repetitive and Rule-Based Tasks Are Prime Targets

According to a report from McKinsey Global Institute, 50% of current work activities could be automated using AI technologies, especially in industries that involve manual and administrative work. 

Source: https://en.wikiversity.org

2. Jobs with Minimal Need for Emotional Intelligence

According to the World Economic Forum, jobs in sectors such as healthcare and education that require complex human interaction are among those least likely to be replaced by machines. Jobs with fewer social and emotional requirements, on the other hand, may see more automation. 

3. Efficiency and Cost-Effectiveness Drive Automation

This makes artificial intelligence (AI)-driven automation an alluring substitute for human labor for businesses in industries where cost-effectiveness is crucial. Self-checkout lanes and AI-driven inventory control are already becoming more common in retail. The potential for AI to reduce employment is particularly high in industries where reducing labour costs significantly impacts profitability. 

A study by Oxford University found that 47% of jobs in the U.S. are at risk of being automated over the next two decades, primarily due to the cost-saving advantages AI provides in low-skill, repetitive jobs. 

4. The Role of Technology in Accelerating Job Displacement

The emergence of autonomous vehicles may pose a threat to jobs in logistics, such as truck drivers. It’s important to understand that, in the big picture, artificial intelligence (AI) may increase employment in some sectors while likely decreasing it in others. Jobs require human judgment, empathy, and inventiveness, however, skills that AI is still far from mastering will endure. 

By 2030, several jobs may be automated due to AI’s rapid evolution, which is changing industries. Let’s look at key roles that AI is expected to replace: 

1. Data Entry Clerks

Data entry is a highly repetitive task which makes it an ideal candidate for automation. AI-powered systems can process massive amounts of structured data quickly and accurately, reducing the need for human clerks. 

2. Telemarketers

Artificial intelligence-powered chatbots and virtual assistants are rapidly evolving to handle consumer inquiries, promotional offers, and even cold calling.

 3. Receptionists

Hotel and corporate office environments are among those where automated check-in systems are already becoming more common. AI-based systems are now frequently faster and more efficient than humans at handling tasks like visitor logging, appointment scheduling, and basic question answering. 

4. Customer Service Representatives

Among the industries where AI is having the biggest effects is customer service. A growing number of customer service inquiries across industries are being handled by chatbots and virtual assistants driven by AI. 

5. Bookkeeping Clerks

Accounting software powered by artificial intelligence can already manage financial transactions, reconcile statements, and prepare tax returnsBookkeeping clerks are becoming less and less necessary as these technologies develop. By 2030, it’s expected that bookkeeping tasks will be fully automated, leaving little room for human involvement. 

6. Retail Cashiers

Traditional retail cashiers have already begun to lose ground to automated checkout systems, such as those found in Amazon’s cashier less stores. By using sensors, cameras, and AI algorithms, these systems track purchases and handle payments without requiring human intervention. This trend is expected to accelerate, with many retailers planning to adopt similar technologies to reduce labour costs. 

7. Truck and Taxi Drivers

Self-driving technology is making significant strides, with companies like Tesla and Waymo leading the charge.

Autonomous vehicles are predicted to replace a large portion of the trucking and taxi industry, especially for long-haul routes where human drivers are more prone to fatigue. By 2030, self-driving trucks and taxis could eliminate millions of driving jobs globally. 

8. Proofreaders

AI tools like Grammarly and other language processing software are becoming highly accurate at catching spelling, grammar, and even style errors. These systems learn from vast datasets and improve over time, making the role of human proofreaders increasingly redundant. It is expected that AI could perform 90% of proofreading tasks by 2030. Even the writing tasks are still being done in coordination with humans by using generative AI tools. 

9. Manufacturing Workers

AI and robotics  powered by machine learning, can work faster, more precisely, and around the clock without requiring breaks. This trend is set to continue, with an expected 30% reduction in human manufacturing roles by 2030, according to a report by the World Economic Forum. 

10. Delivery Drivers

Drones and AI-powered logistics systems are increasingly being tested to handle deliveries. Major players like Amazon and UPS are already investing heavily in drone delivery systems that could eventually replace human delivery drivers for short-distance deliveries. 

11. Security Guards

The need for human security guards is decreasing as a result of the increasing effectiveness of AI surveillance systems. These systems include facial recognition and behavior analysis technologies for monitoring wide areas. 

12. Market Research Analysts

AI-powered analytics tools can now analyse massive amounts of market data faster than humans. They can spot trends, predict consumer behaviour, and provide actionable insights with greater accuracy than human analysts. Market research will be dominated by AI-powered tools by 2030, meaning that human analysts will have fewer roles. 

13. Pharmacists

Pharmacies are using artificial intelligence (AI) algorithms to prescribe medications based on patient histories and manage inventory. The possibility that AI will automate some of the jobs that chemists have historically performed is a serious worry since it could result in job displacement, cutting off at least 50% of pharmacists in the industry. 

14. Legal Assistants

Artificial intelligence (AI) tools are already assisting lawyers by automating tasks like contract analysis, document review, and even case outcome prediction. Legal assistants’ roles are becoming less necessary as a result of these tools’ ability to process enormous volumes of legal documents far faster than humans. 

15. Financial Analysts

Artificial intelligence (AI) algorithms are becoming increasingly good at analysing financial data, forecasting market trends, and even making investment recommendations.

AI has its limitations, even if it is revolutionizing a lot of industries. AI’s programming and the data it is fed frequently limit its potential. This is the reason why AI is still far behind in many jobs, particularly those that call for emotional intelligence, creativity, and human empathy. 

The jobs that demand characteristics that are specific to humans such as empathy, creativity, emotional intelligence, and the capacity to negotiate challenging social situations, are ultimately the ones that will be most protected from AI. 

With AI’s continued development, jobs in some sectors will probably disappear, but roles that focus on people will become increasingly important. So, while AI is undoubtedly shaping the future, there’s still plenty of space for jobs that only humans can do best. 

Reference:

15 jobs will AI replace by 2030? Gaper (https://gaper.io/15-jobs-will-ai-replace-by-2030/)

Wednesday, 2 July 2025

Is it a Balancing Act for SST?

After a two-month delay, the government has announced that the targeted revision of the sale tax rate and expansion of the service tax scope will be implemented on July 1. A grace period is given for companies to comply with the newly revised sales and service tax (SST), with no prosecution or penalties to be imposed until Dec 31. 

The expanded SST framework is part of broader fiscal reforms aimed at strengthening the country’s fiscal position through increasing revenue and broadening tax base.  But to the detriment of the B40 and M40.

 

Source: https://www.financialexpress.com 

It is projected to yield RM5 billion in tax revenue this year, or an annualised RM10 billion for a full year, to help offset lower oil revenue. The Finance Ministry wants to meet Budget 2025’s fiscal deficit target of 3.8% of gross domestic product despite GDP growth of below 4.5%.

The timing of the implementation must consider the economic conditions and business environment. It is widely acknowledged that the Malaysian economy has slowed, with growth moderating from the second half of last year and continuing into the first half of this year. 

The current global geopolitical landscape, US trade policies, and recent escalation of conflicts in the Middle East present significant downside risks to the global economy, potentially causing spillover effects. Businesses are expressing caution due to ongoing concerns about disruptions induced by tariff uncertainty, leading to a more cautious approach to spending and investment. 

Consumers are likely to adjust their discretionary spending even amid stable labour conditions and low inflation of 1.5% in the first four months of this year. 

Businesses are naturally concerned about the “bunching” of cost increases as they can significantly impact profitability, cash flow, and even viability of the business. These include the RM200 rise in the national minimum wage to RM1,700 per month, the planned implementation of 2% employers’ contribution to the Employees Provident Fund for foreign workers, reduction in the subsidy for RON95 fuel and an impending hike in electricity tariffs as well as the forthcoming port tariff adjustment of 30% at Port Klang implemented in phases over a three-year period, starting July 1.

With businesses already reeling from rising operating costs, implementing the expanded SST could further burden businesses with increased costs and squeezing their profit margins. Most construction contracts are normally awarded on a fixed-price and fixed-duration basis, which limits the industry’s flexibility to absorb new costs without disrupting the project delivery. Operating costs increases due to a 8% service tax on rental or leasing together with other personnel cost-related measures indicate that the operating costs for a small enterprise in business services would rise by 6.1% or RM8,398 per month. Costs for a small enterprise in the fashion business could increase by 8.9% or RM5,924 per month, and a medium-sized enterprise in manufacturing could face an 11% increase in costs or RM26,058 a month. 

Ultimately, increased business costs, if not absorbed, would be passed onto consumers, potentially dampen discretionary consumer spending due to higher prices of non-essential goods and a wider range of taxed services. 

Under the revised sales tax structure, a total of 3,409 items previously exempted are now subject to tax, with 3,216 items (28.1% of total goods) at 5%, and 193 items (1.7%) at 10%. In total, out of 11,458 items, 1,809 items (15.8%) remain exempted, while 4,077 items (35.6%) are taxed at 5% and 5,547 items (48.4%) at 10%. 

Cost of living remains a key issue due to slow wage growth of 7% in nominal wages per worker from 2019 to 2024. Household expenditure data showed that the B40 category spend 52% of their income on necessities, followed by 37% for the M40, and 32% for the T20. 

The FMM expressed frustration that while it was consulted on the sales tax expansion — leading to retained exemptions for essential goods — there was "no consultation" on the equally significant expansion of the service tax. FMM estimates indicate that businesses in logistics, manufacturing and retail relying on rented premises could see annual cost increases of RM24,000 to RM60,000 per premises that may either be passed on to consumers or force businesses to scale back operations.

 

FMM wants the government to postpone the enforcement of the expanded SST until a full economic impact assessment is completed. It also urged the inclusion of broader exemptions, particularly for capital equipment. 

An independent body like a Fiscal Policy Institute or MIER should undertake an economic assessment of all the tax measures planned. The government wants to focus on its fiscal deficit but why can’t they review expenditures and und ways to reduce them. Even the Audit Report highlights them but there is little follow-up. Only a government that intends to lose the next election will do this! 

References:

A balancing act for SST, Lee Heng Guie, The Star, 18 June 2025

 

FMM slams “highly damaging” expanded SST, warns of wide-ranging cascading impact, Joh Lai, TheEdgeMalaysia, 13 June 2025

Tuesday, 1 July 2025

Jobs AI Will Replace by 2030 (Part 1)

Artificial intelligence is advancing fast. The big question is how long it will take until technology dominates the job market. Will you be caught up in the change? With the U.S. navigating a $36 trillion debt, tariff tensions, and economic uncertainty, the spectre of disruption from AI adds urgency for workers to protect themselves. 

Artificial intelligence is expected to fundamentally transform the global workforce by 2050, according to reports from PwC, McKinsey, and the World Economic Forum. Estimates suggest that up to 60% of current jobs will require significant adaptation due to AI. Automation and intelligent systems will become an integral part of the workplace.

 

Source: https://commons.wikimedia.org 

Estimates vary, but experts converge on a transformative window of 10 to 30 years for AI to reshape most jobs. A McKinsey report projects that by 2030, 30% of current U.S. jobs could be automated, with 60% significantly altered by AI tools. Goldman Sachs predicts up that to 50% of jobs could be fully automated by 2045, driven by generative AI and robotics. 

Goldman Sachs previously estimated that 300 million jobs could be lost to AI, affecting 25% of the global labour market. On the bright side, AI is least threatening to labour-intensive careers in construction, skilled trades, installation and repair, and maintenance. 

Dalio warns of a “great deleveraging” where AI accelerates productivity but displaces workers faster than new roles emerge, potentially within two decades. Larry Fink, the CEO of Black Rock, speaking at the Economic Club of New York, cautioned that AI’s impact is already visible in sectors like finance and legal services, predicting a “restructuring” of white-collar work by 2035. Jamie Dimon, CEO of JPMorgan Chase, estimates in his shareholder letter that AI will dominate repetitive tasks within 15 years. 

The actual pace depends on technological breakthroughs, regulatory frameworks, and economic incentives. Hedge fund billionaire Bill Ackman, who runs Pershing Square, argues that corporate adoption of AI is accelerating due to cost pressures, potentially shrinking timelines.

AI’s impact will not be uniform. Some jobs will fall quickly, while others resist longer. Jobs like data entry, scheduling, and customer service are already being overtaken by AI tools like chatbots and robotic process automation. 

A 2024 study by the Institute for Public Policy Research found 60% of administrative tasks are automatable. Fink notes that BlackRock is streamlining back-office functions with AI, cutting costs. These roles, requiring repetitive data processing, face near-term obsolescence as AI’s accuracy and scalability improve. 

Bookkeeping, financial modelling, and basic data analysis are highly vulnerable. AI platforms like Bloomberg’s Terminal enhancements can already crunch numbers and generate reports faster than humans. Dimon warns that JPMorgan is automating routine banking tasks, with 20% of analytical roles at risk by 2030. 

Paralegal work, contract drafting, and legal research are prime targets, as AI tools like Harvey and CoCounsel automate document analysis with 90% accuracy, according to a 2025 Stanford study. Dalio highlights AI’s ability to parse vast datasets, threatening research-heavy roles in academia and consulting. Senior legal strategy and courtroom advocacy, however, will resist longer due to human judgment needs. 

Graphic design, copywriting, and basic journalism face disruption from tools like DALL-E and GPT-derived platforms, which produce content at scale. A 2024 Pew Research Centre report notes that 30% of media jobs could be automated by 2035. Ackman, commenting on X, predicts AI-generated content will dominate advertising soon but argues human creativity in storytelling and high art will endure longer, delaying full automation. 

Diagnostic AI and robotic surgery are advancing, but empathy-driven roles like nursing, therapy, and social work are harder to automate. A 2023 Lancet study estimates 25% of medical administrative tasks could vanish by 2035, but patient-facing care requires human trust. 

Teaching, especially in nuanced fields like philosophy or early education, and high-level management jobs rely on emotional intelligence and adaptability, which AI struggles to replicate. A 2024 OECD report suggests only 10% of teaching tasks are automatable by 2040. Dimon and Ackman stress that strategic leadership, navigating ambiguity and inspiring teams, will remain human-centric. Are you ready for the disruption? 

Reference:

These Jobs Will Fall First As AI Takes Over The Workplace, Jack Kelly, Forbes, 25 Apr 2025

Monday, 30 June 2025

Why is Madani so Desperate?

The Madani Government seems so desperate to do the following:

1.               Raise electricity tariffs from1 July 2025.

2.               Increase port charges by up to 30%, also starting 1 July 2025.

3.               Expand the sales tax to cover 97% of all goods and impose service tax on education, healthcare, beauty, finance, rentals, and industrial sectors — even fruits, salt, raw sugar and seawater are now taxed; all starting 1 July 2025.

4.               Maintain Petronas’ RM32 billion dividend payouts — same as last year — even though Petronas profits have plunged by 32%, forcing them to retrench over 5,000 employees and freeze all promotions and new hiring until end-2026.

5.               Implement the Stamp Duty Act, 1949 for all contracts; and

6.               Planning to hike RON95 fuel price in the second half of 2025.

The answer is probably “blowing in the wind” (not the Bob Dylan song) but Madani has failed to manage the economy and national debt responsibly. Let’s look at some its actions thus far:


 

(i)              Revenue, Spending & Deficit (Jan–April)

Government Revenue:

 

• 2022 - RM82.0 billion (Q1 still under lockdown, economy reopened in April)
• 2023 - RM98.6 billion
• 2024: RM93.2 billion
• 2025: RM97.1 billion

Even with multiple new and expanded taxes (LVGT, CGT, dividends, SST widening), revenue in 2024 and 2025 is still lower than in 2023.
That means the economy isn’t growing fast enough to generate more tax income or are there leakages?

Next, Government Spending has been on the rise:
• 2022: RM116.5 billion
• 2023: RM122.8 billion
• 2024: RM133.2 billion
• 2025: RM127.8 billion

And the overall budget deficit remains sticky:

• 2022: -RM34.4 billion
• 2023: -RM24.1 billion
• 2024: -RM40.0 billion
• 2025: -RM30.7 billion

The deficits in 2024 and 2025 are worse than in 2023, despite extraordinary one-off support in 2024:


• KWAP dividend: RM5 billion (vs forecast RM3 billion)
• BNM dividend: RM5.25 billion (vs RM2 billion)
• RM2 billion from amendments to the Unclaimed Monies Act
• RM2 billion early payment from Petronas for the Bandar Malaysia land deal

Apart from the final RM4 billion payment from Petronas, most of these revenue windfalls will not recur in 2025.


(ii)       Government Debt and Debt-to-GDP Ratio

As of 16 June 2025, the government has already borrowed a net RM64.28 billion — that’s 79.4% of the RM81 billion debt limit set in Budget 2025, even though only 45.8% of the year has passed.

This means that either they have to cut spending drastically or squeeze the rakyat further to raise more taxes — quickly — because there’s only RM16.7 billion in borrowing room left for the rest of 2025.Due to stagnant revenue and rising spending, government direct debt has soared:


• Nov 2022: RM1.071 trillion
• Jun 2025: RM1.305 trillion
• That’s an increase of RM234.2 billion in just 30 months of Madani.

Debt-to-GDP ratio has also surged from 60.3% to 65.5% by Q1 2025. This shows that debt is rising faster than economic growth. If GDP were truly expanding in a healthy way, this ratio should be going down - not up.

(iii)      Government Debt Servicing Costs (Interest Only)


• 2022: RM41.3 billion
• 2023: RM46.1 billion
• 2024: RM49.8 billion
• 2025: RM54.7 billion

 

 

With an additional RM81 billion in borrowing for 2025, interest payments in 2026 are projected to hit RM63 billion. That’s an increase of RM21.7 billion in annual interest payments in just 3 years — and this is just interest, not even principal repayment. In 2017 under Najib, the total annual debt servicing cost was only RM28 billion.

Bottom Line: Is Madani Squeezing the Rakyat to Cover Their Own Failures?

To preserve their budget targets, slow the debt spiral, and fund ballooning interest payments, the Madani government will continue extracting from the rakyat — through every possible means — to cover up three years of economic mismanagement. When you don’t know how to run a country, everyone else will pay the price. 

As a responsible Government, one would present a reduction in operating expenditure and arrest leakages. Then only attempt to introduce less controversial taxes. But no, they insist on induced inflation especially with tariffs still not sorted. Why can’t you do the Tobin tax (for banks), widen the excess profit tax and increase the “sugar” tax?

Thursday, 26 June 2025

“Feels Like Cheating”

Malaysia celebrated a dominant 4-0 victory over Vietnam in the 2027 Asian Cup qualifiers. However, many local fans voiced concerns over the national team's increasing reliance on naturalized players. The most upvoted comment responded to the post: "Oh right. The three key players who scored for Malaysia were Johan Figueiredo, Ramasami Holgado, and Lim Corbin-Ong."

The Football Association of Malaysia (FAM) reportedly plans to naturalize even more players, potentially fielding a squad without any locally raised players, similar to Indonesia's recent policy. This trend has boosted the squad value of Malaysia and Indonesia, putting them ahead of regional rivals like Vietnam and Thailand, who have naturalized some players with foreign blood but still rely primarily on domestic talent.

 


With a squad strengthened by high-quality players of South American and European origins, hosts Malaysia completely dominated Vietnam at the 2027 Asian Cup qualifiers.

Malaysian defender Matthew Davies and head coach Peter Cklamovski remain focused on their upcoming match, dismissing rumours about the alleged illegal naturalization of several new players.

We don’t realise or refuse to accept that on merit, foreign players naturalised are better than local talent. Why are the likes of Akmal not questioning this policy of sidelining local bumiputra talent? Surely, we must limit foreign talent (naturalised) not to exceed say, 4 in a team of 11? What if all 11 are “foreigners”? Could we have Ronaldo playing for us?

If the above is feasible in football, could we apply the same for companies or specific sectors in the economy? What is so different? If we have the best talent to represent Malaysia and work for Malaysia, our GDP will not be RM2.0 trillion but RM4.0 trillion in 10 years. Then the pie is large enough to distribute to the disadvantaged group, and no one will have cause to create tension. Isn’t that brilliant? It’s not cheating but being real in a competitive world. Just do it!

 

Reference:

'Feels like cheating': Malaysian fans express concern over naturalized players despite big win over Vietnam, Hoang An, VnExpress,12 June 2025