Thursday, 3 December 2015
The Trans-Pacific Partnership Agreement (TPPA)
1. TPPA would give equal treatment to investors of huge multinational companies from countries like the United States to bid for government projects that have been awarded to Bumiputera companies. If the government gives preferential treatment to indigenous companies, foreign investors may sue and the Malaysian government to an international tribunal. This means, the privileges of the Malays and Bumiputera as enshrined in the Federal Constitution no longer apply and government policies to develop the economy of the Malays and the natives would shackled by a foreign power giant international companies that control the international tribunal. South Africa has been confronted with this problem and was forced to give in, when fundamentally people-black (similar NEP) has been challenged in an international tribunal.
2. TPP is expected to abolish import duties on rice from the United States, which is currently charged at 40%. When this tax was abolished, the price of American rice is cheaper than the price of local rice because of high subsidies given to US government rice producer country, causing the price of rice can not be matched by the prices of rice in our country. When this happens, the rice industry of our country will be paralyzed, thousands of farmers lost their source of income, we will rely on the supply of rice from the United States is the third largest rice exporter in the world. The final effect is threatened national food security and sovereignty compromised.
3. Standard Halal Malaysia will be treated as "non-tax barriers" that restrict free trade. Existing standards will be "subdued" Best Practices standards reference Americans serve as the reference in the TPPA negotiations. Of course Jakim has no power to monitor the processed meats in the United States. More companies in the country are in breach of the conditions laid down, much less overseas companies. Malaysia Halal certification also covers medicinal products, cosmetics and so on, which of course is difficult to be observed by foreign companies. This all will be compromised on the grounds of free trade.
4. Any new rules -after TPPA sealed imposed on the products or activities of foreign companies, which were found to cause environmental pollution or harm to people's health, will be challenged in an international tribunal. Uruguay, Australia, Ecuador, Canada, Mexico is a few examples of countries that have become a victim of a free trade agreement with the United States involving billions of US dollars in the international tribunal issue.
5. Equal treatment of investors from foreign giants will also put the Malay reserve land at high risk. Restrictions on the company's foreign investors to own land reserves for commercial purposes would be challenged in an international tribunal. In addition, the act of "criminal nation" that mengalibabakan possession of reserve land will be extended to involve giant American investors as well.
6. The films pornographic and violent films produced by international manufacturers will be marketed freely in the country because of the censorship of films deemed a "non-tax barriers" are deleted in the TPP. Film Censorship Board states no longer can perform its functions and the people of this country will be exposed to an increasingly destructive spectacle of moral and moral values in addition to the existing social problems that have been chronic.
7. The price of medicines will increase from 60% to 80% of the price now, because the TPPA would further tighten the requirements for the manufacture of generic drugs, which have so far supplied over 80% of the medicines required for a cheap price.
8. Basic prioritize local workers, such as regulations requiring foreign companies to transfer technology and provide training to locals, the regulations that protect local employees from the point of health, safety, welfare and minimum wage is no longer feasible in the TPPA. It is up to the company to foreign investors to set their own standards. The result is that the entry of skilled workers from countries such as the United States, without those responsible for training local workers, and the dumping of cheap labor from countries such as Vietnam, Bangladesh and so on. Our workers are forced to compete with foreign workers, on an equal basis.
9. TPPA is actually the American agenda to broaden his powers on the Asian side, to rival China, which is forecast to become a major power coming years. That is, only six chapters, from chapter 29 in the TPPA really related to trade. The rest of the associated control policies and policies that provide the traction United States on the countries involved. In fact, Malaysia is not necessary TPPA, because without any trade agreements we already have a trade surplus of nearly one billion by the United States in March 2015 alone. While on the other hand, TPPA would restrict the freedom of our trade with China Enemies political, economic and military America- which is the largest trading partner we are today with a trade value of RM17.16 billion in March 2015. In fact, this agreement is actually only benefit large corporations dominated American Judeo-which the American public and victimize its own citizens. That's why it was rejected by some American politicians are still close to the people.
10. In reality, the Malays and the natives can not compete in the state, much less to compete with foreign traders and investors giant multinational companies. Facts show that only 8% Bumiputera in managerial positions in the private sector, has only 8.2% of large companies and 25% of the property value in Malaysia. Should deny the reality of fantasy.
11. The above argument can not be denied or refuted by solid evidence by the consultant appointed by the government. This is because there is evidence that they are negotiating texts or draft treaty under discussion. However, they can not use it because it is a text or draft documents secret and not made public. Nearly all MPs, whether the government or the opposition, do not have access to the document or in a language easy to read and never know about it. After the documents leaked, then all the expectations about the TPPA made -based trade agreements with other countries in the Americas before this- apparently true. The negotiations have been going on for years in secret. Parties drafting is the US government with the direct advice of more than 600 giant companies. While some lucky people in the government who are directly involved and know the details of the negotiations in detail the text is Datuk Jayasiri A / L Jayasena as chief negotiator and Tan Sri Dr Rebecca Fatima Sta Maria, Director General of the Ministry of International Trade and Industry, which is in their hands lies the fate of our country's sovereignty.
The glorious history of the Islamic economy
Since the days of the Prophet Muhammad, Islam's economy has been running almost around the Arabian peninsula even to Africa is characterized by groups or tribes in the Arabian time enter into transactions or trade it for months, because in Islam there is no prohibition for a Muslim toisriis and related trade with non-Muslims. But Islam also has ethical principles in the conduct of Islam, one of which is permitted trade and forbidden usury (interest) is contained in the Qur'an.
In the history of Islam, economic freedom is guaranteed by various legal systems and traditions. Prophet Muhammad was not ready to set a price, even at that prices are soaring, as it is based on the principle of voluntary bargaining in the trade that allows the imposition of certain ways that sellers of their goods at a price lower than the market price. During those changes are caused by real factors in supply and demand that are not accompanied by a push-doronganmonopolik (single agent) and monopsonik (the sole shareholder). After the Prophet Muhammad, Muslims still maintain the principle of freedom which always carried the Prophet, even the concept of moral behavior in the market.
During the first few centuries of the Hegira, a number of experts to write books about the role and obligations of market operators. Themes contained in all these is the preservation of freedom in the market and elimination of monopolistic elements (structured monopoly). The principles defended by many Muslim judge, even to threaten legal system itself by removing the right to intervene in cases of monopoly. Based on this, Islam does not approve of if there is a social organization and social welfare plan when any organization / institution is pressing individuals and bind them with social authority, so that they are independent personalities will be lost, and most of them become mere machine or tool in the hands of the few.
economic in Rasululllah century
The economic history of Islam originated in foster Muhammad as a messenger of God at the age of 40. Allah issuing policies followed and continued by his successors that khulafaurrasyidin. Islamic economic thought based on Al-Quran and al-Hadith.
Life of the Prophet and the Muslim community at the time he was the best example of the implementation of Islam, including in the economic sphere. Although at the time before the prophethood of Muhammad is a businessman, but that meant economic in the Prophet in Madinah here is on time. In the Muslim community of Mecca have not had time to build the economy, because the time is full of struggles to defend themselves from bullying the people of Quraysh.
It was only in the period of the Prophet in Medina Medina took a leading building society up to sejahatera and civilized. Although the economy at the moment he is still relatively modest, but it was he had shown a fundamental principle of the principles of economic management. In this case, the strategy will be undertaken by the Prophet is to perform the following steps:
1. Build Mosque
2. The rehabilitation of Emigrants
3. Build Constitution
4. Put the Basics of National Financial System
The economy of the Umayyad Period
History of Economic Thought Islam at the Time of the Umayyad
The success achieved Umayyad give a different economic thinking, precisely when the Muslim world was under the leadership of the Umayyad caliph, Baitul Maal conditions change. This is the reign of the Umayyads, Baitul Maal divided into two parts; general and specific. Baitul Maal income generally reserved for the general public, while revenues Baitul Maal designed to encourage Sultan and his family. However, in practice, it is not uncommon to find a number of irregularities in distributing the property Baitul Maal. Thus the use of Baitul Maal dysfunction during the reign of Umayyad Empire.
Economic activity in the Umayyad Caliphate Period
In pre-Islamic, Roman and Persian money used in the Hijaz, in addition to a few pieces of silver Himyaryang berganbar Attic owl. Umar, Muawiyah, and other previous khalifah get enough foreign currency in circulation, and may, in some cases, there are verses in the Qur'an quote tetentu on the coins. A number of gold and silver money was printed prior to the time of Abd Al Malik, but it was a poor imitation of printing currency Byzantine and Persian. In 695, Abd Al Malik scored a gold dinar and silver dirham pure Arab oaring work. Wkilnya Iraq, Al Hajjaj, printing money in Kuffah next year.
The economy of the Abbasid Period
Very important role in realizing the economy of the Abbasid Caliphs in determining the progress of a country. Because of this, they pay special attention to the development of this sector, especially the first period of the Abbasid dynasty. This effort towards progress has actually been started since the reign of al-Mansur. That is the central government to transfer it to baghdad three years after he was appointed as caliph. By making baghdad city as the center of government control that has a special meaning for the development and progress in the economic field. Baghdad is a city located in areas that are strategic for business and trade. Sungi Tigris navigable up to the city. Similarly, there is a river cruise lines to close enough. So that merchandise could be transported downstream and business and Tigris river using small boats. In addition, the most important is comfortable and safe public roads from all directions Finally Baghdad became very crowded area, as well as the capital city ,governmnent city as well as retail, which is rampant at the time. From there, the country will be able to open a very large number.
In addition, the increase in population is also a factor promoting economic growth, which more rapid population growth, the greater and more market demand factors (demand). This in turn triggered high economic productivity.
In the history of Islam, economic freedom is guaranteed by various legal systems and traditions. Prophet Muhammad was not ready to set a price, even at that prices are soaring, as it is based on the principle of voluntary bargaining in the trade that allows the imposition of certain ways that sellers of their goods at a price lower than the market price. During those changes are caused by real factors in supply and demand that are not accompanied by a push-doronganmonopolik (single agent) and monopsonik (the sole shareholder). After the Prophet Muhammad, Muslims still maintain the principle of freedom which always carried the Prophet, even the concept of moral behavior in the market.
During the first few centuries of the Hegira, a number of experts to write books about the role and obligations of market operators. Themes contained in all these is the preservation of freedom in the market and elimination of monopolistic elements (structured monopoly). The principles defended by many Muslim judge, even to threaten legal system itself by removing the right to intervene in cases of monopoly. Based on this, Islam does not approve of if there is a social organization and social welfare plan when any organization / institution is pressing individuals and bind them with social authority, so that they are independent personalities will be lost, and most of them become mere machine or tool in the hands of the few.
economic in Rasululllah century
The economic history of Islam originated in foster Muhammad as a messenger of God at the age of 40. Allah issuing policies followed and continued by his successors that khulafaurrasyidin. Islamic economic thought based on Al-Quran and al-Hadith.
Life of the Prophet and the Muslim community at the time he was the best example of the implementation of Islam, including in the economic sphere. Although at the time before the prophethood of Muhammad is a businessman, but that meant economic in the Prophet in Madinah here is on time. In the Muslim community of Mecca have not had time to build the economy, because the time is full of struggles to defend themselves from bullying the people of Quraysh.
It was only in the period of the Prophet in Medina Medina took a leading building society up to sejahatera and civilized. Although the economy at the moment he is still relatively modest, but it was he had shown a fundamental principle of the principles of economic management. In this case, the strategy will be undertaken by the Prophet is to perform the following steps:
1. Build Mosque
2. The rehabilitation of Emigrants
3. Build Constitution
4. Put the Basics of National Financial System
The economy of the Umayyad Period
History of Economic Thought Islam at the Time of the Umayyad
The success achieved Umayyad give a different economic thinking, precisely when the Muslim world was under the leadership of the Umayyad caliph, Baitul Maal conditions change. This is the reign of the Umayyads, Baitul Maal divided into two parts; general and specific. Baitul Maal income generally reserved for the general public, while revenues Baitul Maal designed to encourage Sultan and his family. However, in practice, it is not uncommon to find a number of irregularities in distributing the property Baitul Maal. Thus the use of Baitul Maal dysfunction during the reign of Umayyad Empire.
Economic activity in the Umayyad Caliphate Period
In pre-Islamic, Roman and Persian money used in the Hijaz, in addition to a few pieces of silver Himyaryang berganbar Attic owl. Umar, Muawiyah, and other previous khalifah get enough foreign currency in circulation, and may, in some cases, there are verses in the Qur'an quote tetentu on the coins. A number of gold and silver money was printed prior to the time of Abd Al Malik, but it was a poor imitation of printing currency Byzantine and Persian. In 695, Abd Al Malik scored a gold dinar and silver dirham pure Arab oaring work. Wkilnya Iraq, Al Hajjaj, printing money in Kuffah next year.
The economy of the Abbasid Period
Very important role in realizing the economy of the Abbasid Caliphs in determining the progress of a country. Because of this, they pay special attention to the development of this sector, especially the first period of the Abbasid dynasty. This effort towards progress has actually been started since the reign of al-Mansur. That is the central government to transfer it to baghdad three years after he was appointed as caliph. By making baghdad city as the center of government control that has a special meaning for the development and progress in the economic field. Baghdad is a city located in areas that are strategic for business and trade. Sungi Tigris navigable up to the city. Similarly, there is a river cruise lines to close enough. So that merchandise could be transported downstream and business and Tigris river using small boats. In addition, the most important is comfortable and safe public roads from all directions Finally Baghdad became very crowded area, as well as the capital city ,governmnent city as well as retail, which is rampant at the time. From there, the country will be able to open a very large number.
In addition, the increase in population is also a factor promoting economic growth, which more rapid population growth, the greater and more market demand factors (demand). This in turn triggered high economic productivity.
MALAYSIA: 10 BIGGEST ECONOMIC ISSUES
10 The issue of the Malaysian economy in 2015
By: Dr. Nazri Khan
Complaints and grievances brave challenge in 2015.
To all Malaysians, ready to face the challenges of TEN largest economy next year:
1. INCREASE IN THE COST OF LIVING
Government measures to raise the price of petroleum (an increase of 20 per cent), electricity (up 15%), sugar (up 30 sen), the price of flour (up 20 sen) and toll rates (minimum 50 per cent) or less will boost the cost of living all people. The latest official inflation level has already risen to 3.4%, the highest in a year. The unofficial inflation / real may triple over 10% per annum.
The average price of a cup of coffee now is RM1.60, RM1.80 price of rice is rolled while a piece of bread has reached RM1.20 excluding GST.
2. GOVERNMENT DEBT LEVELS HIGH
Government debt levels have increased since 1970. The Federal Government debt in 1970 was RM2 billion, in 1999 amounted to RM95 billion but now has reached RM568.2 billion or 53% of GDP is approaching the ceiling of 55%. Foreigners also owns approximately 15% of total debt in the country. This condition can affect the exchange rate of the country.
MalaysiaFor record, the government spent more than RM10 billion a year just to pay interest on debts that have been taken by the Federal Government.
3. THE HOUSEHOLD DEBT LEVELS OF HARMFUL
Malaysian household debt has doubled to RM750 billion or 76.2% of GDP in July this year. Large fraction is 29% housing loans, vehicle loans, 51%, 15%, personal loans and student loans by 33%.
This means that Malaysians are generally made with wasteful spending and reckless.
If not controlled, five years household debt in Malaysia exceed 100% of GDP means that the country earned income is insufficient to pay the outstanding debt remedy.
4. ECONOMIC GROWTH DECADE THAT MORE SLOWLY
The total economy (GDP) in 2014 was RM1.07 trillion. Although the global economy is expected to increase, Malaysia's GDP growth average of the last ten years, only slower by 5% and more driven by domestic demand. Compared to an average GDP growth of 7% in 1990, driven by exports and external sector.
For the record, since 1945 to 1998, Malaysia is one of 13 countries which have achieved growth of over 7 per cent for more than 53 years. However, after 1998, economic growth has fallen gradually.
5. MANAGEMENT OF THE HIGH COST
From 1970 to 2013, total administrative expenses increased from RM2.2 billion to RM216.2 billion. The largest component is the salary of civil servants. To note, Malaysia has the highest ratio of civil servants in the world 1.4 million or 10% of the total workforce in Malaysia.
6. HIGH COST OF GOVERNMENT SUBSIDIES
The total amount of government subsidies has increased significantly from RM1.1 billion in 1999 to RM44.1 billion in 2013.
This means that 20% of the taxes collected will be used to subsidize people. Subsidy is like a weed because it is addictive when it has been given. The termination of subsidies could also lead to a political cost to the government of the day.
Basic subsidies are not an effective policy for the poor. People like to use fuel more than the poor on a motorbike. This means that subsidies be enjoyed by the wealthy.
7. EMPLOYEE PRODUCTIVITY IS WEAK
Only 80 percent of workers nationwide have education up to Secondary Education Certificate (SPM). According to the Malaysia Productivity Corporation (MPC), the country's labor productivity level is much lower than countries like the United States, Japan, United Kingdom, South Korea and Singapore.
Average labor productivity only registered value of RM43,952 per annum.
Compared to the United States topped the list of employees with a productivity level of RM285,558 per annum, followed by workers in Japan Hong Kong RM229,568 and RM201,485. This means that workers in Malaysia work in a longer period than any other country, but produces lower returns.
8. MALAYSIAN BUDGET DEFICIT EVERY YEAR SINCE 1998
Despite having such commodities as oil and palm oil, the State Budget deficit remains for 16 consecutive years since the Asian financial crisis. For the record, spending on subsidies to people reduced by £ 7.3 billion for 2014.
While the overall deficit level of countries have gone down but still high at about £ 36 billion.
At the same time, the current account surplus (exports minus imports) was reduced from RM102 billion in 2012 to RM37 billion in 2013. This means that the surplus of 3% of GDP at present is small because Malaysia had registered a current account surplus of 10 %.
9. leakages and TRANSPARENCY OF STATE
In the Corruption Perceptions Index or Corruption Perception Index conducted by Transparency International, Malaysia ranked 53rd out of 177 countries. This position is not as commanding as in 2003, Malaysia was ranked 37th.
For the record, the Global Financial Integrity report, Malaysia was ranked 4th in terms of total cumulative outflow of illegal funds amounting to RM880 billion between the years 2002-2011. This means that illicit outflows from Malaysia may be greater than countries like the Philippines, Nigeria and Venezuela.
10. The weakening of the ringgit AND SALARY INCREASE SLOWLY
With Ringgit Malaysia remained weak compared to the US Dollar (lowest in six months) and Singapore Dollar (lowest in 15 years) also contributed to the surge in prices and the cost of living in Malaysia.
The effect of the weakening ringgit causes a decrease in the purchasing power of individuals. That means every ringgit of revenue will be able to buy some imported goods and services than ever before.
The increase in the cost of living which occurred was also not consistent with the slow rate of wage increases.
According to Payscale.com, the average salary increase Malaysia is only around 3.5% compared to 9.8% Indonesia, Singapore and Thailand 12% to 5.8% in the same period.
In conclusion, the backbone of the economy is fluctuating society, nation and state. I am confident that this issue can be dealt with ten, sustainable government, the economy and people's scintillating effort. Amen.
* Dr. Nazri Khan is the President, Malaysian Association of Technical Analyst (MATA) and Exco, Malay Chamber of Commerce Malaysia
By: Dr. Nazri Khan
Complaints and grievances brave challenge in 2015.
To all Malaysians, ready to face the challenges of TEN largest economy next year:
1. INCREASE IN THE COST OF LIVING
Government measures to raise the price of petroleum (an increase of 20 per cent), electricity (up 15%), sugar (up 30 sen), the price of flour (up 20 sen) and toll rates (minimum 50 per cent) or less will boost the cost of living all people. The latest official inflation level has already risen to 3.4%, the highest in a year. The unofficial inflation / real may triple over 10% per annum.
The average price of a cup of coffee now is RM1.60, RM1.80 price of rice is rolled while a piece of bread has reached RM1.20 excluding GST.
2. GOVERNMENT DEBT LEVELS HIGH
Government debt levels have increased since 1970. The Federal Government debt in 1970 was RM2 billion, in 1999 amounted to RM95 billion but now has reached RM568.2 billion or 53% of GDP is approaching the ceiling of 55%. Foreigners also owns approximately 15% of total debt in the country. This condition can affect the exchange rate of the country.
MalaysiaFor record, the government spent more than RM10 billion a year just to pay interest on debts that have been taken by the Federal Government.
3. THE HOUSEHOLD DEBT LEVELS OF HARMFUL
Malaysian household debt has doubled to RM750 billion or 76.2% of GDP in July this year. Large fraction is 29% housing loans, vehicle loans, 51%, 15%, personal loans and student loans by 33%.
This means that Malaysians are generally made with wasteful spending and reckless.
If not controlled, five years household debt in Malaysia exceed 100% of GDP means that the country earned income is insufficient to pay the outstanding debt remedy.
4. ECONOMIC GROWTH DECADE THAT MORE SLOWLY
The total economy (GDP) in 2014 was RM1.07 trillion. Although the global economy is expected to increase, Malaysia's GDP growth average of the last ten years, only slower by 5% and more driven by domestic demand. Compared to an average GDP growth of 7% in 1990, driven by exports and external sector.
For the record, since 1945 to 1998, Malaysia is one of 13 countries which have achieved growth of over 7 per cent for more than 53 years. However, after 1998, economic growth has fallen gradually.
5. MANAGEMENT OF THE HIGH COST
From 1970 to 2013, total administrative expenses increased from RM2.2 billion to RM216.2 billion. The largest component is the salary of civil servants. To note, Malaysia has the highest ratio of civil servants in the world 1.4 million or 10% of the total workforce in Malaysia.
6. HIGH COST OF GOVERNMENT SUBSIDIES
The total amount of government subsidies has increased significantly from RM1.1 billion in 1999 to RM44.1 billion in 2013.
This means that 20% of the taxes collected will be used to subsidize people. Subsidy is like a weed because it is addictive when it has been given. The termination of subsidies could also lead to a political cost to the government of the day.
Basic subsidies are not an effective policy for the poor. People like to use fuel more than the poor on a motorbike. This means that subsidies be enjoyed by the wealthy.
7. EMPLOYEE PRODUCTIVITY IS WEAK
Only 80 percent of workers nationwide have education up to Secondary Education Certificate (SPM). According to the Malaysia Productivity Corporation (MPC), the country's labor productivity level is much lower than countries like the United States, Japan, United Kingdom, South Korea and Singapore.
Average labor productivity only registered value of RM43,952 per annum.
Compared to the United States topped the list of employees with a productivity level of RM285,558 per annum, followed by workers in Japan Hong Kong RM229,568 and RM201,485. This means that workers in Malaysia work in a longer period than any other country, but produces lower returns.
8. MALAYSIAN BUDGET DEFICIT EVERY YEAR SINCE 1998
Despite having such commodities as oil and palm oil, the State Budget deficit remains for 16 consecutive years since the Asian financial crisis. For the record, spending on subsidies to people reduced by £ 7.3 billion for 2014.
While the overall deficit level of countries have gone down but still high at about £ 36 billion.
At the same time, the current account surplus (exports minus imports) was reduced from RM102 billion in 2012 to RM37 billion in 2013. This means that the surplus of 3% of GDP at present is small because Malaysia had registered a current account surplus of 10 %.
9. leakages and TRANSPARENCY OF STATE
In the Corruption Perceptions Index or Corruption Perception Index conducted by Transparency International, Malaysia ranked 53rd out of 177 countries. This position is not as commanding as in 2003, Malaysia was ranked 37th.
For the record, the Global Financial Integrity report, Malaysia was ranked 4th in terms of total cumulative outflow of illegal funds amounting to RM880 billion between the years 2002-2011. This means that illicit outflows from Malaysia may be greater than countries like the Philippines, Nigeria and Venezuela.
10. The weakening of the ringgit AND SALARY INCREASE SLOWLY
With Ringgit Malaysia remained weak compared to the US Dollar (lowest in six months) and Singapore Dollar (lowest in 15 years) also contributed to the surge in prices and the cost of living in Malaysia.
The effect of the weakening ringgit causes a decrease in the purchasing power of individuals. That means every ringgit of revenue will be able to buy some imported goods and services than ever before.
The increase in the cost of living which occurred was also not consistent with the slow rate of wage increases.
According to Payscale.com, the average salary increase Malaysia is only around 3.5% compared to 9.8% Indonesia, Singapore and Thailand 12% to 5.8% in the same period.
In conclusion, the backbone of the economy is fluctuating society, nation and state. I am confident that this issue can be dealt with ten, sustainable government, the economy and people's scintillating effort. Amen.
* Dr. Nazri Khan is the President, Malaysian Association of Technical Analyst (MATA) and Exco, Malay Chamber of Commerce Malaysia
Ringgit is continue to fall
The ringgit will
continue with its current free fall unless a certain "person” is not
around, said former prime minister Tun Dr Mahathir Mohamad.
While he did not name
the person, it is widely assumed the retired statesman was referring to Prime Minister
Datuk Seri Najib Razak.
Dr Mahathir said the
performance of the Malaysian currency was worse than during the Asian financial
crisis from 1997 to 1998.
Citing the Thai baht
as an example, he said at its worst, the exchange rate between the ringgit and
the Thai currency was RM1 to 10 baht.
But now it was RM1 to
only 7 or 8 baht, said Dr Mahathir.
"Why is this
happening? It is because people do not trust Malaysia's economy, they want to
run and are dumping the ringgit because the value may drop further tomorrow.
"This will become
worse in the future. I don't see how it can improve unless the person is not
around," he said at a talk, titled “Malaysia Hari Ini: Ke Mana Kita?
(Malaysia Today: Where are we heading?)”, at the Pasir Gudang stadium in Johor
this afternoon.
Dr Mahathir has been
one of Najib's most strident critics and has repeatedly called for the prime
minister's resignation over the scandals surrounding 1Malaysia Development
Berhad (1MDB) and the RM2.6 billion "donation" from an unknown Middle
Eastern donor into Najib's personal bank accounts.
Dr Mahathir said today
the ringgit was so weak now that some people do not even want to use the
currency, and those who have it would rather exchange it for other stronger
currencies.
He also said a lot of
Malaysians, especially those with children studying overseas, struggled to cope
with the weak ringgit.
Despite Putrajaya's
assurance that the country's fundamentals were strong, worries remained over
the economy as the ringgit, Asia's worst performing currency in the past one
year, has plunged beyond RM4 against the
US dollar while foreign exchange reserves slipped below US$100 billion last
month for the first time since 2010.
Many attributed the
ringgit's poor performance to the worsening global outlook, China's surprise
devaluation of the yuan, plunging commodity prices and the current political
scandal linked to Najib.
Najib is facing
intense scrutiny over the US$700 million (RM2.6 billion) "donation"
from an unknown Middle Eastern donor
into his personal accounts while at the same time, his brainchild, state
investment firm 1Malaysia Development Berhad (1MDB) is facing multiple probes
over its alleged financial irregularities.
The country is also
suffering from a perception of interference when Tan Sri Abdul Gani Patail was
abruptly replaced as attorney-general while the Malaysian Anti-Corruption
Commission (MACC) offices were raided and its officers detained for questioning
by the police over alleged leak of information related to 1MDB.
On Tuesday, Najib
announced a new committee to ensure Malaysia's economic growth in the face of
what he described as "uncertain and challenging times".
"The committee's
objective is to ensure Malaysia's growth momentum will continue for some time
and be able to generate prosperity in the rather uncertain and challenging
times," he said.
Najib, however, said the
details about the committee wwould be announced "soon".
Malaysia: The challenge of 2016 budget.
Economic growth in 2016 is expected to remain challenging contributed to volatility in financial markets, the decline in commodity prices, the strengthening of the US dollar and slowing growth in China.
According to the 2015/2016 national economy, the economy is forecast to grow 4 percent to 5 percent, driven by domestic demand.
Private sector expenditure will remain a key component of domestic demand by 6.4 per cent expansion in 2016.
Reports said the initiative will be taken to increase the use by increasing disposable income funds achieved by creating more jobs and tackle the rising cost of living.
On the investment, investor confidence will be enhanced through the provision of a conducive environment.
Although the ringgit depreciated, inflation is forecast lower as crude oil prices fell and the slow effect of GST.
Inflation in the first eight months of 2015 grew by 1.9 percent compared to 3.3 percent the same period last year.
For exports, the exporters have been urged to strengthen its presence in the global value chain especially for emerging technologies and new growth areas.
The report also noted, 2016 was a challenging year for Malaysia, especially to increase the resilience of the domestic economy while ensuring the sustainability of public finances.
According to the 2015/2016 national economy, the economy is forecast to grow 4 percent to 5 percent, driven by domestic demand.
Private sector expenditure will remain a key component of domestic demand by 6.4 per cent expansion in 2016.
Reports said the initiative will be taken to increase the use by increasing disposable income funds achieved by creating more jobs and tackle the rising cost of living.
On the investment, investor confidence will be enhanced through the provision of a conducive environment.
Although the ringgit depreciated, inflation is forecast lower as crude oil prices fell and the slow effect of GST.
Inflation in the first eight months of 2015 grew by 1.9 percent compared to 3.3 percent the same period last year.
For exports, the exporters have been urged to strengthen its presence in the global value chain especially for emerging technologies and new growth areas.
The report also noted, 2016 was a challenging year for Malaysia, especially to increase the resilience of the domestic economy while ensuring the sustainability of public finances.
Toll concession holder: PLUS reserves the right to raise toll rates
All highways are built and operated by the North South Expressway Project Berhad (PLUS) Malaysia Bhd entitled to raise toll rates by five per cent from 2016.
Deputy Works Minister Datuk Rosnah Shirlin in a written statement in the House of Representatives also informed the company also reserves the right to review the toll rates every three years until his contract expires in 2038.
"According to the concession agreement signed additional PLUS in November 2011, the government and PLUS Expressway Berhad (PEB) agreed to decide There is no increase in toll rates on all highways under their temph Plus for five years from 2011 to 2015," she said.
"The rise will come is 206 (except where the Penang Bridge toll rate remained until December 31, 2038.
"This latest agreement also sets toll rates kemaikan 5 per cent for each of three years from 2016 until expiry of the concession at 31 December 2038," he said.
Highways under Plus is the New Klang Valley Expressway (NKVE), Federal Highway Route 2 (FHR2), Seremban, Port Dickson, North-South Expressway Central Link (NSECL), Malaysia-Singapore Second Link (MSSL) and Butterworth-Kulim Expressway (BKE).
Last week, the Minister of Works, Datuk Seri Fadillah acknowledge that the government has to pay RM214 million to PLUS as compensation if denied toll on the highway.
The government has no intention, for now, to extend the concession North South Expressway (NSE), which expires in 2038, Rosnah told the House of Commons during question time.
"At present, the government does not intend to extend the concession period," he said when replying to Ahmad Fauzi Zahari (BN-Setiawangsa), who asked about the toll highway.
Ahmad Fauzi asked the government to disclose details of the increase in toll rates so people can make preparations.
Meanwhile, Rosnah also said PLUS only make a profit after tax of RM8.4 million from toll collection RM2.61 billion last year.
Deputy Works Minister Datuk Rosnah Shirlin in a written statement in the House of Representatives also informed the company also reserves the right to review the toll rates every three years until his contract expires in 2038.
"According to the concession agreement signed additional PLUS in November 2011, the government and PLUS Expressway Berhad (PEB) agreed to decide There is no increase in toll rates on all highways under their temph Plus for five years from 2011 to 2015," she said.
"The rise will come is 206 (except where the Penang Bridge toll rate remained until December 31, 2038.
"This latest agreement also sets toll rates kemaikan 5 per cent for each of three years from 2016 until expiry of the concession at 31 December 2038," he said.
Highways under Plus is the New Klang Valley Expressway (NKVE), Federal Highway Route 2 (FHR2), Seremban, Port Dickson, North-South Expressway Central Link (NSECL), Malaysia-Singapore Second Link (MSSL) and Butterworth-Kulim Expressway (BKE).
Last week, the Minister of Works, Datuk Seri Fadillah acknowledge that the government has to pay RM214 million to PLUS as compensation if denied toll on the highway.
The government has no intention, for now, to extend the concession North South Expressway (NSE), which expires in 2038, Rosnah told the House of Commons during question time.
"At present, the government does not intend to extend the concession period," he said when replying to Ahmad Fauzi Zahari (BN-Setiawangsa), who asked about the toll highway.
Ahmad Fauzi asked the government to disclose details of the increase in toll rates so people can make preparations.
Meanwhile, Rosnah also said PLUS only make a profit after tax of RM8.4 million from toll collection RM2.61 billion last year.
Inflation and deflation
Inflation occurs when the price of goods and services rise,
while deflation occurs when those prices decrease. The balance between the two
economic conditions is delicate, and an economy can quickly swing from one
situation to the other.
Inflation is caused when goods and services are in high
demand, creating a drop in availability. Consumers are willing to pay more for
the items they want, causing manufacturers and service providers to charge
more. Supplies can decrease for many reasons: A natural disaster can wipe out a
food crop or a housing boom can exhaust building supplies, among other
situations.
Deflation occurs when too many goods are available or when
there is not enough money circulating to purchase those goods. For instance, if
a particular type of car becomes highly popular, other manufacturers start to
make a similar vehicle to compete. Soon, car companies have more of that
vehicle style than they can sell, so they must drop the price to sell the cars.
Companies that find themselves stuck with too much inventory must cut costs
somewhere, which often leads to layoffs. Unemployed individuals do not have
enough money available to purchase expensive items, which continues the trend.
When credit providers detect a decrease in prices, they
often reduce the amount of credit they offer. This creates a credit crunch
where consumers cannot access loans to purchase big-ticket items, leaving
companies with overstocked inventory and leading to further deflation.
Deflation can lead to an economic recession or depression, and the central
banks usually work to stop deflation as soon as it starts.
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