Economic Cost of Capital Controls

August 5, 2010

Economic Cost of Capital Controls

by ESWAR PRASAD*

Capital controls remain a bad idea an idea that is far more seductive in theory than in practice. Moreover, there is good reason to see inflows into emerging markets as an opportunity to strengthen domestic capital markets, rather than primarily as a threat to financial stability.

CAPITAL controls are back in vogue. Facing sharp currency appreciation and fearing asset-price booms fuelled by hot money, countries such as Indonesia, South Korea and Taiwan have recently taken steps to limit inflows.

Nervous central bankers in many other emerging markets, including India, facing pressures from exporters hurt by rising exchange rates, are contemplating broader controls on capital inflows as well.

Earlier this year, the International Monetary Fund came out in favour of capital controls. So, does the new fascination with capital controls hold up to scrutiny?

Capital controls remain a bad idea an idea that is far more seductive in theory than in practice. Moreover, there is good reason to see inflows into emerging markets as an opportunity to strengthen domestic capital markets, rather than primarily as a threat to financial stability.

Unrestricted capital flows could indeed spell disaster for an economy that has dysfunctional financial markets, high levels of corruption, and weak monetary and fiscal policies. So it might seem reasonable that emerging markets halt or even reverse the progress they have made on liberalising capital flows in order to get their houses in order first.

But re-imposing capital controls is simply not a fruitful option. When the incentives for money to flow across borders are strong, it will find a way, abetted by the proliferation of firms with opera! tions in multiple countries and the expansion of international trade which serves as a conduit for masking capital flows and evading controls.

Even in a tightly-managed economy like China, massive capital inflows have been able to find their way around controls over the last decade. Moreover, establishing controls on one type of inflow simply leads to it being disguised in other forms.

Capital controls have real costs, even if they fail to stanch inflows. They create a layer of protection from competition for those who are better connected, politically or economically, or have the sheer heft to get around the restrictions. This puts medium-sized firms the main engines of job creation at a big disadvantage.

Imposing controls also spawns uncertainty about a countrys policies. The stock-market collapse in Thailand in December 2006, following the imposition of a modest tax on equity inflows, is one example of what can happen.

More generally, the cat-and-mouse games that ensue as the authorities try to stay one step ahead of investors efforts to evade controls benefit neither stability nor growth.

Emerging markets should cope with inflows by finding ways to use foreign capital more effectively, which involves strengthening domestic financial markets. For example, in India, there is a great need for financing large infrastructure projects a need that cannot easily be met by local banks.

Freeing up corporate-bond markets would help foreign investors contribute to the development of the countrys infrastructure while earning a good return as Indias productive potential increases.

A complementary approach is to liberalise capital outflows further, in order to offset inflows. This would give domestic households and firms more avenues to invest abroad and diversify their portfolios.

Indeed, China has done this by expanding its q! ualified domestic institutional investor programme to allow more investments abroad.

None of this is to say that the risks of foreign-capital flows have evaporated, and that emerging markets should throw open their capital accounts all at once.

There are still huge inefficiencies in international financial markets, which remain beset by herding behaviour and other pathologies. Mantras about good fiscal and monetary policies may give little solace to a central banker or finance minister desperate to stave off surging inflows and domestic pressure to block currency appreciation.

But knee-jerk reaction to stifle the exchange-rate appreciation that should follow from strong productivity growth only stokes more inflows.

Ultimately, it is indeed good policies and stronger financial markets and other institutions that will help stabilise and manage inflows. As tempting as they are, quick fixes like capital controls merely provide a false sense of security and delay needed adjustments in an economy.

The harsh reality is that emerging-market policymakers have little choice but to manage actively the process of liberalisation in order to improve the cost-benefit trade-off, rather than to try fighting against the inevitable.

The latter course risks the worst of all worlds all of the costs of capital controls and all of the domestic policy complications from volatile capital flows, but few of the potential benefits of foreign capital. Project Syndicate/www.nst.com.my

*The writer is professor of economics at Cornell University, a senior fellow at the Brookings Institution, and a former head of the IMFs Financial Studies Division

Letter & Opinion From Joe Public

Malacca to allow child marriages

* by Hang Nadim

Malaysia and its authorities in general, are renowned for their knee-jerk reaction to social problems, opting almost always to address symptoms rather than the causal factors. The recent decision of the Malacca State Government to allow child marriages to purportedly curtail out-of-wedlock pregnancies is current testimony to this.

Fighting the temptation to use harsher words to describe this proposal, I will relent at merely stating that it is beyond intelligible comprehension. Just for purpose of argument and not that I support this idea, why does not the State impose mandatory chastity belts that may be only removed upon reaching the age of 18? Condoms provide another remedial measure. Does the State want to stop pre-marital sex or out-of-wedlock pregnancy? Will this new measure prevent out-of-wedlock pregnancies but give rise to more divorces since these children are typically immature and unable to cope with the daunting responsibilities of being a parent and wife?

If there was sincere introspection, the State should realise that the causal factors of this malady lay deeper than youth just engaging in pre-marital sex resulting in out-of-wedlock pregnancies. In my humble opinion, the most significant causal factor for this malady relates to the values held by our youth today. These values are contributed amongst others by religious beliefs, parental and family influence, societal environment and norms, and even governmental action.

I am not aware of any religion that encourages pre-marital sex though one may argue that some religions do not expressly prohibit it either. Thats really up to the individual to decide. On family influence, how often do parents and family members take the time today to teach our children good principles? I remember being taught these principles by my mother when I was very young You must never engage in physical activity with a woman before marriage. Try where possible not to even touch a woman. If you are introduced t! o a woma n, always wait for her to extend her hand before you offer yours. Be courteous, show women respect and never use foul language etc. In other areas, I was reminded as soon as I started working to never sell myself like a loaf of bread (i.e. accept bribes). These principles I continue to hold dearly. My mother lived those principles she taught me, strengthening my resolve to follow suit. As I was exposed later to the elements of the society, these principles continued to guide me. I never saw the need to conform to the order of the day. I still do not. I doubt I ever will. I used these principles as a sieve to weed out what I consider the bad from the good. These days, I only see parents emphasising that kids must study hard and accumulate wealth. Rarely anything else is added to the syllabi they teach their children. Whether they practise what they teach is further in doubt. It is my humble view that a good education and wealth sans good principles/values is akin to having bones unclothed with flesh. When you add more bones to society, you get a society bereft of a soul, one that is in reality, dead.

Next, let us consider the values that the Malaysian society extols. I may be generalising by surmising that our society emphasises materialism and educational achievement (our version) that is individualistic. We rave about the top richest men in the country, the tallest twin towers in the world, the longest bridge, the number of As scored in exams, the ability to make the news or television, about going for holidays and to space, the sexual prowess of certain men, the record number of times certain men/ women married etc.. Why not emphasise values that we would like to see our society have and more importantly, truly live them.

The government clearly needs to engage with society and all its stakeholders to seek direction on how to restructure our society and address our social ills. It must cease pretending that it has all the answers. By evidence of this measure proposed by the Malacca Sta! te Gover nment, it is evident that it does not even comprehend the question, let alone have an answer.

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Court throws out Zaid's election petition........

Former minister in the Prime Minister's Department Zaid Ibrahim has failed in his bid to challenge the Hulu Selangor by-election results. This follows the High Court 's decision to allow a striking-out application by the victorious candidate, P Kamalanathan.

Election judge justice Azahar Mohamed has ruled that the election petition was defective as it had not stated clearly the alleged bribery acts. Azahar then declared Kamalanathan was duly elected as Hulu Selangor MP.

Zaid had filed the petition on May 24 to invalidate the April 25 poll results on grounds that there were attempts to induce voters by BN chief Najib Abdul Razak. He alleged that Kamalanathan knew of the inducements made by Najib. The focal point of the case was Najib's promise of RM3 million to SRJK (C) Rasa School and the presentation of cheques to the Felda settlers.

Kamalanathan applied to strike out the petition on the grounds that it was trivial and an abuse of the court process. He claimed that Zaid had failed to identify the people said to have been offered bribes by - or to have received from - Najib during the election campaign, as alleged in the petition. Kamalanathan further argued that Zaid had failed to abide by the election petition rules in filing the petition.

According to him, the pleading in the petition does not come under Section 32(c) of the Election Offences Act 1954 (EOA) as it does not fall within the meaning of corrupt practices as stipulated under Section 10(a) of the Act.

Justice Azahar had earlier dismissed Zaid's preliminary objection to Kamalanathan's strike-out application. Ninety percent of election petition cases end with a striking-out application. -
Hafiz Yatim

source:malaysiakini

So what can you expect from 1Malaysia courts,when the opposition are concerned.....

cheers.
Letter & Opinion From Joe Public

Pak Bui It never ceases to amuse me, how the top dogs like to

Pak Bui

It never ceases to amuse me, how the top dogs like to rear their pups to sit in their chairs in future, like a little Childrens Political Party.

Malaysia Todays recent feature on the PBB Youth reminded us all of the leading roles played in the party by children of ministers.

Gerald Rentap Jabu

Gerald Rentap Jabu, son of deputy chief minister Alfred Jabu, probably has the most grandiose name in Sarawak politics. Strictly speaking, his name ought to be Gerald Rentap Alfred, if the standard Iban practice of using the patronymic holds true. Other suggestions for names have been proposed, but are not suitable for publication.

Gerald and his sister Umang Nangku Jabu are fabulously wealthy board members of construction company Tintingmas (awarded stacks of government contracts in Kapit and elsewhere, according to the Pengayau blog), Sarawak Plantation Bhd (a vehicle of Jabu-nomics development that takes land away from native owners, and then offers them employment with Indonesian labourer wages), and other cash cows.

The Iban folk hero Rentap fought for the independence of his Iban kin, while our modern-day equivalent endorses the practice of institutionalised slavery, as a replacement for owning ones own land.

It remains to be seen whether Alfred Jabus patented posture of an inclined head at an improbable angle with a fixed smile, the attitude he adopts each time he is in the same office compound as chief minister Taib Mahmud, is passed on genetically to his son Rentap.

Sulaiman Taib

Another prominent member of the Spoilt Brats Club is Sulaiman Taib, son of the chief minister. He evidently lacks the wisdom of Solomon, as suggested by the stories of him failing to attend board meetings as chairman of Bank Utama. He has the distinction of being the first chairman of a bank to have been removed by Bank Negara for hopeless ineptitude.

Press reports of him beating his wife Anisa Chan and attempt! ing to s trangle Avaa Vanja Ramli, who referred to him as her boyfriend, have cemented his reputation as a pathetic misogynist.

A recentSarawak Report article on Sulaiman pointed out that he had asked his father to buy him the Bugatti race-car factory. It quoted a hilariousBugatti Review article by a former collegemate, describing Sulaiman as a boy racer while he was studying in San Francisco, and calling Sulaiman Malaysian Monarchy.

Abdul Aziz Adenan

Abdul Aziz Adenan is son of the pseudo-minister Adenan Satem. Adenan fell from grace after he insulted the Iban; among other offences, he started his speeches with sneers about the traditional Iban chant of hoo-haa.

But Taib has now rescued Adenan from obscurity and lavished him with taxpayers money, by appointing him as a cabinet member for public relations: Minister for Spin, you might say.

Visitors to Adenan Satems home have reported that he owned many bookshelves lined with serious tomes. The expensive-looking books were bound in heavy leather, and embossed with gilt lettering. But on closer inspection of the books, it became clear that the pages had never been cut and the books had never been read they were simply decorations, like the mock-royal furniture and the shiny trinkets on show elsewhere in the room.

Given the depth of intellectual learning in the Adenan Satem household, it is only to be expected that Abdul Aziz is now PBB Yoof information chief. Book learning, respect for scholarship, or even basic information should never be a requirement to be appointed a BN information chief.

PBB Yoof have chosen Abdul Aziz to set up a crack cybertrooper team, the New Media Unit, to counter the widespread impact of news portals and blogs in discrediting PBB and the BN.

We do not go in for character assassination but want to give a clearer picture of government policies to counter the oppositions claims and misconceptions,Bernama quoted Abdul Aziz as saying.

Sadly, every time Abdul Aziz makes a ! public s tatement, he betrays his inordinately tenuous claim on credibility, and performs character assassination on himself: a kind of intellectual hara-kiri.

We can now reveal that the PBB Yoof New Media Unit has been given an enormous budget allocation to upload videos of RTM prime-time news onto PBB websites, in a noble campaign to combat anti-Taib and anti-BN news on the internet.

It has also been rumoured that the videos invariably begin with the catchphrase Chief Minister Pehin Sri Datuk Patinggi Haji Dr Abdul Taib Mahmud today said PBB Yoof has reported dozens of hits on their RTM news bulletin websites, mostly from a couple of hired help cybertroopers clicking on their site repeatedly.

Still, most of us will agree that none of these young men, the Flower of PBB Yoof, should be blamed for the sins of their fathers. They are, after all, only trying to carve out their own little piece of Sarawakian history. Like father, like son.

Filed under: Politics
Letter & Opinion From Joe Public

More on Sime Darby

August 5, 2010

Malaysian Insider : Sime Darby to report biggest ever loss

One-time Malaysian icon, the 100-year-old Sime Darby Berhad, appears to be in a downward spiral as it faces huge losses again after the last one 13 years ago, with top officials being taken off from several units.

The Malaysian Insider understands that the government conglomerate will next month announce that potential losses could top RM2 billion and go as high as RM2.5 billion. Most of the losses are down to ill-advised investments in the energy and utilities sector in Qatar as well as tardy business practices in the development of the Bakun dam in Sarawak.

The last time Sime Darby saw red on its balance sheets came after the 1997 Asian Financial Crisis, when a plunge in the stock market and a sharp depreciation of the ringgit led its financial arm, Sime Bank, to post a RM1.6 billion loss the largest in Malaysian banking history for the six months to December 1997. The conglomerate went on to post a six-month loss of RM676.2 million and closed the 1998 financial year with a net loss of RM540.9 million.

It is also learnt that property division managing director Datuk Tunku Badlishah Tunku Annuar has been removed from some units within his division while other top officials are being put on notice after Sime Darby instructed former chief executive Datuk Seri Ahmad Zubir Murshid to take a leave of absence last May 13 in relation to the losses.

But hefty losses and disciplined officials aside, the group could also face crippling billion-ringgit law suits as it moves to abruptly end some of its ! joint ve ntures across the globe.

It is understood that since being appointed as the acting chief executive, Datuk Bakke Salleh has been looking at joint ventures involving Sime Darby, arguing that some of these were not as advantageous to the group as others and mooting that they be revisited or ended.

The only hitch is this: All the ventures are legally-binding, were agreed to and vetted by Simes legal department, and given the green light by the previous management and the board of directors. A couple of the ventures even pre-dated Zubirs tenure as the chief executive.

Any move to end these ventures is likely to set off an expensive legal battle for Sime Darby. The conglomerate could also have an embarrassing face-off with Zubir. He has been forced to go on leave but has not quit as the chief executive.

Along the corridors of Wisma Sime Darby, there is growing belief that he will engage a lawyer to protect his interest and avoid being made the scapegoat for all the problems at the conglomerate. A slugfest in court will prove bloody for both Zubir and the board of directors, led by Tun Musa Hitam, but it could also have serious repercussions for the Barisan Nasional (BN) government.

It is widely known that government-linked companies sometimes enter into deals at the behest and urging of government leaders and political masters.

One of the chief concerns of investors on hearing the news that Bakke has been selected to steady the listing ship at Sime Darby was his relative inexperience in running a public listed entity.He has helmed Tabung Haji and Felda, where profit making were not the primary objective. In both these organisations, corporate social responsibility (CSR) is a key objective, and since occupying the hot seat at Sime Darby and meeting senior officials, the view in the conglomerate is that corporate social re! sponsibi lity will enjoy equal billing with profit making, news which may not cheer investors. Officials who have met him describe Bakke as driven but impulsive.

Sime Darby closed at RM7.70 per share yesterday, falling one sen from the opening price. It has lost nearly some RM6 billion in market capitalisation since news of its troubles became public last May 13.

See What Barisan Nasional Gotta Say?

Another victory for the NCR landowners

In adecision delivered this afternoon (05-08-2010), the Kuching High Court held that there is merit in the native communitys claim for NCR to go for trial, that the injunction is necessary to preserve the physical evidence that would tend to support the Plaintiffs claim.

The Plaintiffs are represented by Baru Bian.

The courts ruling on extension of injunction.

Filed under: Human rights, legal, Native Customary Rights Tagged: Baru Bian, Human rights, Native Customary Rights, NCR, Sarawak politics, Save Sarawak
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Muhyiddin is Anti-Najib

Is this Muhyiddin’s 1Malaysia?

from National Express Malaysia

Pakatan elected reps kept out of S’gor schools

A circular that allows specified BN leaders to attend events organised by Selangor schools but keeps out those from Pakatan Rakyat, has been criticised as an example of double standards.

The circular dated Feb 16, 2009 states that the education minister has appointed 57 leaders from Selangor Umno, MCA, MIC and Gerakan to represent him at these events in the state.

Signed by the principal secretary to the minister, the circular was sent to the director of the Selangor Education Department.

It also states that the BN representatives have each been issued a certificate of appointment, copies of which were attached to the circular with a full list of names and posts held in the respective political parties.

When contacted, Hannah Yeoh, the DAP state assemblyperson for Subang Jaya said that – by implication – school authorities have to get the minister’s permission to invite Pakatan representatives.

“(When the schools ask for permission), it is never given,” she claimed.

Yeoh had recently mentioned this in a tweet, in which she questioned the contents of the circular and said she had managed to obtain the list of ‘approved’ BN leaders.

“I am not allowed to attend any function in the schools in my area. This is not right as it sends the message to the children that you have to receive whoever you are given. They cannot choose their own leaders,” she said.

She, however, said she was allowed to enter her alma mater – SMK Subang Utama – after the Parents-Teachers Association (PIBG) stepped in.

“In my case, because the PIBG insisted, I was able to attend. So it shows that PIBG plays an important role,” she added.

‘Clearly unfair’ policy

DAP’s Teratai state assemblyperson Jenice Lee confirmed the situation.

“Some schools had requested donations from me, but I was not allowed to go in and give a speech,” she said.
There was one occasion where I had to hand over the cheque outside the school compound.”

“I know this has happened to many other Pakatan leaders, not just me and Hannah. And this is clearly unfair.”

Willing buyer willing seller

from National Express Malaysia

So we have a situation where property developers put their houses up for sale and cross their fingers and hope that no Malays will buy their houses. And if within a certain period of time the ‘Malay units’ remain unsold then they would be free to sell them to the non-Malays at the normal and undiscounted price.

NO HOLDS BARRED

Raja Petra Kamarudin

There are those who would have us believe that Islam is a very complex religion. If you studied Islam from the day you were born till the day you die, say these people, you can learn only a very small percentage of Islam. Nobody goes to his/her grave knowing everything about Islam, they would add.

Okay, that is what they believe, and they are entitled to their beliefs, just like I am entitled to mine. But what is so complex about The Ten Commandments? For example, which part about ‘thou shalt not kill’ do you not understand? And has not humankind been killing fellow humans since the beginning of time? And worse of all, many, all religions not exempted, have been killing in the name of God.

Actually, Islam is not that complex, as what many may think. It is a very simple religion. It sets certain guidelines for mankind. The problem is, along the way, man, and not God, has added to this and has made it complex. So the question is did God or did man turn Islam into a complex religion?

That is of course a matter for debate and not something that can be resolved in this article.

My Tok Guru once said that Islam views the hypocrite as the real enemy of Islam. The Munafik, said my Tok Guru, is the most dangerous enemy of Islam and they deserve death.

We may shudder at this ‘fatwah’ or decree. There they go again propagating death, you may say. Why is Islam so engrossed with death to this person or death to that person? Nevertheless, whether we agree or disagree with the death sentence being propagated for Munafiks, we can’t deny the fact that Islam views the Munafik as a very dangerous person who deserves death.

And what, you may ask, would be considered a Munafik?

Well, let us deliberate on one example. Islam says that in any transaction there must be a willing buyer and willing seller for the transaction to be valid. Any transaction that is not based on willing buyer willing seller is considered not valid. And any transaction that is not valid will not receive God’s blessing.

That is not what I say. That is what Islam says. I am just enlightening you on what Islam says -- or at least what my Tok Guru has told me.

Now let us take the current brouhaha about the special discount on houses sold to Malay buyers. Umno has made police reports against Tony Pua for calling an end to the special discount on luxury homes given to Malay buyers. In short, Umno wants the police to arrest Tony Pua and send him to jail for calling an end to the policy of giving Malay buyers of luxury homes a special discount.

We must remember that Umno means Muslims. So Muslims want the housing developers to give Malay buyers a special discount on the houses sold to them. This means, whether they agree or not, by law the housing developers must offer Malay buyers a special discount on the houses they buy. And if they do not then they are to be denied approval to build these houses.

Of course, they hide behind the New Economic Policy in enforcing this rule -- which although its name has been changed a few times since 1970 is still very much in force since the last 40 years.

Now, since Umno is Muslim, let us reconcile this with Islam and see what is Islam’s view on this special discount to Malay house buyers.

In Islam there must be a situation of willing buyer willing seller. If someone is forced to sell something at a price that is not agreed upon, or at a price that is reluctantly agreed upon due to certain government intervention, then it is not a willing buyer willing seller situation.

This means the transaction is not valid.

So Malays who buy houses at a special discount because the developer is forced to sell it to them at a special discount are entering into a transaction that is not blessed by Islam. This is because it is not a willing transaction. It is a forced transaction.

The developers really have no choice in the matter. When they apply for their licence to build those houses the government would stipulate a clause that a certain percentage of the houses must be reserved for Malay buyers and the houses must be sold to the Malay buyers at a discount. If they do not agree then the developers would not be given permission to build the houses.

So they have no choice but to agree, if they want permission to build the houses. And they will need to price the houses sold to the non-Malay buyers slightly higher to subsidise the discount given to Malay buyers. So they ‘steal’ from the non-Malay buyers to be able to afford the discount given to the Malay buyers.

They can of course disagree with this, which means they will not obtain permission to build the houses. If they want to remain in business then they have no choice but to agree. It is a sort of blackmail. This is no willing buyer willing seller situation. It is sell to the non-Malays at a higher price so that the Malays can buy the houses at a cheaper price.

Most property developers are not happy with this. But they can’t do anything about it. Either they agree or else they will not obtain approval to build the houses. And they hope that not many Malays would come forward to buy the houses so that they can go back to the government to inform the government that there are no Malay buyers and they therefore need permission to sell the ‘Malay units’ to the non-Malays.

So we have a situation where property developers put their houses up for sale and cross their fingers and hope that no Malays will buy their houses. And if within a certain period of time the ‘Malay units’ remain unsold then they would be free to sell them to the non-Malays at the normal and undiscounted price.

Muslims are taught that in any transaction both the buyer and seller must be satisfied with the price and quality of goods being transacted. No one must be short-changed in price and quality.

A kilogram of apples must be exactly a kilogram. And there should be no worms in any one of the apples. The quality and weight must be as agreed and at the price agreed upon between seller and buyer. The seller can’t cheat the buyer either in weight or quality. And the buyer also can’t pay less for the apples but must pay what the seller has demanded. If the buyer pays less and walks away then the transaction is not valid and the apples become haram, just like it was pork.

That is when transacting a kilogram of apples. What about when transacting a house? Can you compel the seller to sell you his house at a ‘forced sale’ price? The seller must be satisfied with the price. It is not enough that the buyer is satisfied with the price. The seller too must be satisfied.

This is Islam. And in Islam the willing buyer willing seller concept is very important. Anything short of that and Islam will not recognise the transaction. So how can these Muslims be up in arms about what Tony Pua said? What Tony Pua said is what Islam also says. You can’t force someone to sell you something at a price the seller is not happy with.

So this is what I mean by Munafik. They shout, scream, rant and rave about Islam. And, in the same breath, they violate the most fundamental thing in Islam. They say it is the birthright of the Malays to be able to buy houses at a discount even if the seller is not happy selling it at that price. Then they ask the government to detain under the Internal Security Act all those who question Malay rights and privileges even though Islam forbids detention without trial.

And they say Islam is complex. Actually it is not. It is the Malays who have made Islam complex.

Do you know there are some Malay house buyers who refuse the special discount because they know in Islam you can’t force someone to part with his goods at a price he does not agree with?

Now those are what I would call true Muslims.

Stop ethnic cleansing at Bukit Jalil Estate

HRP and Hindraf full force to stop ethnic cleansing of Bukit Jalil esatate homes temple, cemetary and Tamil school by neo colonialist UMNO.

Kuala Lumpur 4/0/08/2010. Since 6.30 this morning HRP and Hindraf supporters started gathering at the Ladang Bukit Jalil, Kuala Lumpur to put up a peaceful resistance to stop the “ethnic cleansing” of the Bukit Jalil estate workers homes, their Hindu temples, Hindu crematary and their Tamil school build by the British colonialist over 200 years ago. And now after 53 years of independence the same is now to be “ethinically cleansed” by the neo coloialist, racial and religious supremacist and extremist UMNO.
P. Uthayakumar, S. Thiagarajan and S. Tinakaran arrived at about 8.30 a.m and were warmly greeted by the ex-plantation workers of Bukit Jalil estate Music was played with the trademark Hindraf song Tholvi Nilai yena nivaithal. About 30 Hindraf and HRP supporters in their traditional orange shirts and the residents of Ladang Bukit Jalil sang along with full of emotions.
Captain Bala of Bukit Jalil estate then started with the anti UMNO slogans and “Satu Malaysia Dua Sistem” chanting. A group of Bukit Jalil residents then started chanting Hindraf and which was responded with Valga which still remains magical and sent vibrations till to day since the 25^th November 2007 Hindraf Rally. Also heard were slogans of “Polis Kejam” DBKL kejam, “Jangan nyaya masyarakat India, satu Malaysia and the response “dua sistem”, “UMNO” and the response “dua system”.
Addressing the media P. Uthayakumar said that the strangers to the 200 year old Bukit Jalil estate ie DBKL formed only some 30 years ago and the Federal Territories Ministry are now declaring these native Indian ex rubber tappers of Bukit Jalil estate as squatters. UMNO’s DBKL “tuans” are now abusing the law by using the Emergency Ordinance to forcibly “ethnically cleanse” the Bukit Jalil estate workers homes, their Hindu temple, Hindu cemetary and Tamil school. UMNO has refused to get a Court Order and are now abusing their powers by using the Emergency Ordinance.
The Bukit Jalil residents were repeatedly invited to discuss the settlement away from the Hindraf & HRP gathering but they had refused. Typical UMNO divide and rule strategy!
Finally about 10.00 a.m one UMNO “tuan” Mohamed Amiruddin, Deputy Director of Operations and read “ethnic cleansing” of UMNO’s DBKL (black and white). This UMNO “tuan” used a loud hailer and announced that all the said residents would be isuued letters of offer to purchase the nearby low cost flats to which the crowd started chanting that they wanted surat hitam putih. This Director went away promising to come back and that the “ethnic cleansing” would be deferred for three days.
Another UMNO temporary solution for Bukit Jalil estate workers homes, their Hindu temple, Hinkdu ceremtary and Tamil school.
After a few hours UMNO’s DBKL come back and handed them an offer letter given to them earlier much to the disappointment of the residents.
HRP’s W. Sambulingam then organised a meeting with the residents at Bukit Jalil at 7.00 p.m today to plan thier next plan of action to also secure land for Hindu temple, cemetary and Tamil school.
Another “Multi-racial” PSM party leaders were seen negotiating with the said DBKL “tuan” and then briefed the gathering about the meeting. But these “comrades” as usual had refused to even ask about the fate of the Hindu temple, Hindu cemetary and the Tamil school. Maybe, because their “Socialist principles” says so or more likely that they may lose Malay voters if they are seen to be also championing justice for the Hindu temples, Hindu cemetery and Tamil schools.
When a member of the gathering had asked this PSM leader about the Hindu temple, Hindu cemetary and the Tamil school he merely had kosong replied “later”.
Two MIC Youth mandores were also seen among the gathering. But they had refused to sing along the Hindraf Tholvi song as there may not be Tholvi in their mandore roles as they are making some peanuts money in the name and by shortchanging the Indian community.
Karunai Nithi @ Compensative Justice.

FELDA: Najib Bohong Pasal Kos Penanaman Semula

Pertamanya, terima kasih di atas kajian yang dibuat Malaysianinsider. Kajian ini menunjukkan dakwaan kononnya RM2.4 billion dibelanjakan untuk penanaman semula adalah bohongg semata-mata. Minta Najib dan Ahmad Maslan jawab:

Mengapa Sime Darby cuma perlu berbelanja RM497 juta sahaja (untuk 530k hektar) sedangkan Felda berbelanja RM2.4 billion (untuk 767k hektar)?

Dengan kata lain, bagi satu hektar, FELDA berbelanja RM3,151 sedangkan Sime Darby:RM936 dan IOI:RM596.

JELAS, Najib dan Ahmad Maslan telah menipu rakyat Malaysia dan orang Melayu. Malahan, percubaan Malaysianinsider untuk mendapat penjelasan dari FELDA pun tidak berjaya. Jelas ada udang di sebalik batu. Patutlah Ahmad Maslan bachul tak berani berdebat denan Mazlan Aliman.

Saya cabar Najib Tun Razak dan Ahmad Maslan untuk MEMBENARKAN pihak ketiga yang bebas untuk mengaudit akaun FELDA. Saya mencadangkan pihak Commonwealth atau Pertubuhan Bangsa-Bangsa Bersatu dijemput untuk membuat audit tersebut.

Dasar UMNO, kalau tak menipu tak sah.

Tulang Besi

Feldas high replanting cost invites scrutiny
By Lee Wei Lian
August 04, 2010
Feldas shrinking cash pile comes at a time when palm oil prices have risen and stayed at high levels. Reuters pic
KUALA LUMPUR, Aug 4 The RM2.4 billion in replanting costs incurred by plantation giant Felda has raised eyebrows among industry observers who are sceptical the amount is part of the reason for federal agencys dwindling cash reserves.

Prime Minister Datuk Seri Najib Razak last month dismissed claims that Felda was bankrupt, explaining that among other things, the agency had spent RM2.4 billion to replant oil palm trees and on living costs from 2005 to 2009 as part of its reinvestment efforts.

The reason for the scepticism is that other companies tend to report replanting costs far below that of Felda! . Planta tion sector analysts also note that due to high commodity prices in recent years, planters have tended to put off replanting to take advantage of the windfall.

It is estimated that the production cost for one tonne of palm oil is about RM1,000 while it has been trading at above RM2,500 a tonne in recent years, closing at RM2,562 per tonne yesterday.

However, as a measure of replanting costs, Sime Darby Berhad spent about RM497 million during the same period on replanting while IOI Corporation Berhad spent about RM90 million.

When contacted, Felda Holdings Berhad declined to comment and referred The Malaysian Insider to Deputy Minister in the Prime Ministers Department Datuk Ahmad Maslan.

Ahmad clarified that the RM2.4 billion replanting costs were for the period 2004 to 2009 and included the cost of living for settlers as well as advances on production.

But Najib went on record on June 30, 2009 to tell the Dewan Rakyat that Felda had allocated RM80 million for schemes involved in replanting oil palm and RM11 million for rubber for that year alone.

It is understood that the Malaysian Palm Oil Board (MPOB) has also allocated RM200 million last year for replanting programmes with small holders outside the Felda palm oil schemes.

About half of Felda land is owned by settlers, and the rest by Felda and its subsidiaries. Ahmad also said that there is no breakdown available solely for replanting costs, which makes it difficult to compare Felda directly to other oil palm majors.

On average, plantation companies tend to replant about five per cent of their land annually, and a rough estimate shows Feldas figure per replanted hectare to be about RM10,503, or RM2.42 billion divided by 30 per cent of its 767,981 hectares that are planted with oil palm.

The corresponding figure for Sime Darby is RM3,120 per replanted hectare while for IOI the number is RM1,988.

The disparity could be due to the cost of living and production advances as mentioned b! y Ahmad. Other factors could include higher expenditure due to the generally poorer growing conditions where some Felda plantations are located as they cannot afford to be as selective as private plantation companies.

But without the government or Felda being more forthcoming about its financials, it is difficult to say for certain. Felda does not issue an annual report although there have been calls for it to do so as a government-linked company. An unfortunate consequence of this is that its operations and financials sometimes appear shrouded in mystery, giving rise to speculation that the money has gone elsewhere.

Ahmad Maslan said the RM2.4 billion covered more than replanting costs alone.
Felda has come under public scrutiny over allegations that the agency was mismanaged under Najib. Among the accusations that have been levelled at the prime minister include those from former land and co-operative development deputy minister Datuk Dr Tan Kee Kwong, who said that Feldas cash reserves had declined drastically by RM2.73 billion from RM4.08 billion in 2004 to RM1.35 billion in 2009.

He further criticised moves to expand Feldas scope to international investments including the purchase of the oleo chemical company Twin Rivers Technonlogies in Boston, US, as he said it would distract from its core business of plantations. He was also unhappy about Feldas decision to buy a tower in the Naza groups Platinum Park development for its headquarters instead of building on its own land.

Ahmad had admitted to the decline in cash reserves but also pointed out that, at present, Felda had net assets worth RM12.2 billion and investments around the world in countries like Indonesia, South Africa, China, Turkey and the US.

The prime minister also defended Felda saying it had invested in the United States and Canada in order to penetrate the global market. He added that the new Menara Felda in Platinum Park was on prime land near KLCC and, if sold, would bring in much profit.

Felda Ho! ldings h ad also earlier said it should not be compared to private enterprises as it had social obligations.

Some analysts, however, point out that Felda should try to optimise profits in order to maximise dividends to stakeholders which indirectly includes tax payers as the government is a major shareholder.

See What Barisan Nasional Gotta Say?

Will Mahathir Leave Najib alone?

August 5, 2010

Mahathir wont take a back seat

by Aidila Razak@www.malaysiakini.com

After two successors and almost seven years after vowing to take a back seat, former premier Dr Mahathir Mohamad is showing no sign of doing so.

Having been a vocal critic of his handpicked successor Abdullah Ahmad Badawi, recent developments indicate that Mahathir may be none too happy with Prime Minister Najib Abdul Razak either.

A clear indication of this came earlier this week when Mahathir took a swipe at Najib, whom he had endorsed, for having failed to explain his 1Malaysia slogan convincingly.

They (the public) do not know which is which, which ones are for the Chinese and which ones are for the Malays. If I were to explain, how should I know? I was not the one who created the slogan, he said.

1Malaysia has not been the only area at which Mahathir has turned up his nose. Only a month into Najibs premiership, the veteran politician weighed in against him on the reversal of the policy to teach Science and Mathematics in English.

Through his blog, which courts several million readers, Mahathir chided the then newly-minted premier for wavering on policy decisions.

However, Mahathir had no issues with Najibs apparent policy reversal on the issue of bumiputera affirmative action due to pressure from the Malay community.

After months of apparent support, the elder statesperson took a stance against Najibs New Economic Model (NEM), which had called for the cancellation of racial quotas.

Mahathir also became patron of Malay rights NGO Perkasa. Emboldened by his endorsement, Perkasa fronted the Mal! ay Consu ltative Council to pile pressure on Najib, leading him to finally claim that nothing had been finalised on the NEM.

Turning point

For political analyst Shamsul Adabi Mamat, the Perkasa episode signified a turn in the Najib-Mahathir relations which, he said, has had its ebbs and flows.

When Najib became PM, there were indications that their relations were chilly, but things picked up until the Perkasa issue, which led to public perception that something is not right, said the Universiti Kebangsaan Malaysia lecturer.

However, he said, Mahathirs endorsement of PERKASA is more an attack on UMNO and less on Najibs performance as prime minister.

The cheating charge against former transport minister Dr Ling Liong Sik, who served in Mahathirs cabinet, is also not likely to strain the relationship even though it may reflect badly on the former premier.

Yesterday, Mahathir said he was willing to be a witness in the case against Ling, but that his responsibility in the matter was limited as there are lots of things that a prime minister does not know.

The public may have the perception that it may cause damage (between the two), but his statement on this shows that he is willing to help the government solve the issue, said Shamsul.

We are still at a stage where (Mahathir) is giving suggestions which he hopes the PM will consider.The suggestions, he said, would not cause Mahathirs ties with Najib to turn turbulent just yet, because the PM was treading carefully.

(Najib) knows that Mahathir can sway public opinion and he can ill-afford to have strained relations with (the latter), Shamsul added.

Mahathirs shadow

Similarly, Universiti Malaya political scientist No! or Sulas try Yurni Ahmad said Mahathirs public statements were signals to Najib.

It seems that for Mahathir, Najibs one year as premier is not bearing the right results. He is using a psychological approach by highlighting these matters publicly so Najib will take notice, she said.

It is also likely that Mahathirs seeming mentor-mentee relationship with deputy premier Muhyiddin Yassin is adding to the pressure on Najib. Muhyiddin is like Mahathirs shadow. He knows what is right and what is not right (by Mahathir) and he tries to guide Najib, she said.

Noor Sulastry said Najib would do well to keep the unofficial government adviser at bay by acting carefully, especially on economic matters. This, she said, was among the key reasons which led to the breakdown in the Abdullah-Mahathir relations.

But with Mahathir recently publishing a lengthy blog entry in which he poked holes in Najibs high-income economy goal, the writing may very well be on the wall.

Letter & Opinion From Joe Public

Mahathir the grand puppeteer......

After two successors and almost seven years after vowing to take the back seat, former premier Dr Mahathir Mohamad is showing no sign of doing so. Having been a vocal critic of his handpicked successor Abdullah Ahmad Badawi, recent developments indicate that Mahathir may be none too happy with Prime Minister Najib Abdul Razak either. A clear indication of this came earlier this week when Mahathir took a swipe at Najib, whom he had endorsed, for having failed to explain his 1Malaysia slogan convincingly.

They (the public) do not know which is which, which ones are for the Chinese and which ones are for the Malays. If I were to explain, how should I know? I was not the one who created the slogan, he said.

1Malaysia has not been the only area at which Mahathir has turned up his nose. Only a month into Najib's premiership, the veteran politician weighed in against him on the reversal of the policy to teach Science and Mathematics in English. Through his blog, which courts several million readers, Mahathir chided the then newly-minted premier for wavering on policy decisions.

After months of apparent support, the elder statesperson took a stance against Najib's New Economic Model (NEM), which had called for the cancellation of racial quotas. Mahathir also became patron of Malay rights NGO Perkasa. Emboldened by his endorsement, Perkasa fronted the Malay Consultative Council to pile pressure on Najib, leading him to finally claim that nothing had been finalised on the NEM.


The cheating charge against former transport minister Dr Ling Liong Sik, who served in Mahathir's cabinet, is also not likely to strain the relationship even though it may reflect badly on the former premier.! Yesterday, Mahathir said he was willing to be a witness in the case against Ling, but that his responsibility in the matter was limited as there are lots of things that a prime minister does not know.

The public may have the perception that it may cause damage (between the two), but his statement on this shows that he is willing to help the government solve the issue, said political analyst Shamsul Adabi Mamat.

Universiti Malaya political scientist Noor Sulastry Yurni Ahmad said Mahathir's public statements were signals to Najib.

It seems that for Mahathir, Najib's one year as premier is not bearing the 'right' results. He is using a psychological approach by highlighting these matters publicly so Najib will take notice, she said. It is also likely that Mahathir's seeming 'mentor-mentee' relationship with deputy premier Muhyiddin Yassin is adding to the pressure on Najib.

Muhyiddin is like Mahathir's shadow. He knows what is right and what is not right (by Mahathir) and he tries to guide Najib, she said.

Noor Sulastry said Najib would do well to keep the unofficial government adviser at bay by acting carefully, especially on economic matters. This, she said, was among the key reasons which led to the breakdown in the Abdullah-Mahathir relations. - Aidila Razak

source:malaysiakini

Mahathir cant be bothered with Najib,Rosmah or Mahyuddin. He wants things done his own way.........

I planned each charted course -
Each careful step along the byway,
And more, much more than this,
I did it my way.........


cheers.
Letter & Opinion From Joe Public