Tuesday, September 17, 2013

PM's Speech on BUMIPUTERA ECONOMIC AGENDA (plus some reflections)



The reading of Malaysia's Prime Minister's speech may make many Malaysians angry for what emerges is a lack of concern for the OTHER Malaysians which do make up  a significant number. But, in para 70 at the end, he does say:-

Nevertheless, on behalf of the Government and from the bottom of my heart, I would like to urge all quarters, not to misconstrue the Bumiputera economic empowerment measures. We will implement all these initiatives and strategies without trampling on the interests of other groups or deny their rights.
It also must be noted that this speech is made when the UMNO (United Malay National Organizations) general elections is just around the corner, and Najib is the President and whether he will still be President is still uncertain. 

The way the government went about BR1M - providing of financial assistance to poor Malaysian households and bachelors also was done irrespective of any ethnic/religious/cultural considerations, so really is Najib, UMNO and BN racist in their approach in governing Malaysia or are they not? 

Who are Malays seem to be expanding - I has a family friend who was MIC, but oddly the son today is UMNO... what is Malay, and who is Malay is also changing...likewise, who is Bumiputra? Hence analyzing becomes difficult because who was Malay/Bumiputra before and now may not be the same?

"...in fact, a convert is defined as Malay, even Mamak and Malbari..have been absorbed as Malays..."

What is sad is also the division of Malaysian society into Malays, Muslim Bumiputra and non-Muslim Bumiputra?  So, do we also have Muslim non-Bumiputra and non-Muslim non-Bumiputra?
Malays and Muslim Bumiputras made up 59.7 percent. While, non-Muslim Bumiputras were 7.6 percent of the overall populace.

What are the names of these 9 main ethnic groups that is Malay? I never knew this fact ..

"  6.1 million Bumiputras in 1970, or 56 percent of the populace. The Malays comprised nine main ethnic groups, Orang Asli were divided into 18 categories, Sabah Bumiputras had 40 ethnic groups while Sarawak had 60 ethnic groups.
Let us read the speech of the Prime Minister of all Malaysians....



14 September 2013| last updated at 08:23PM

BUMIPUTERA ECONOMIC AGENDA: PM's Speech


PM LAUNCHES BUMIPUTRA ECONOMIC EMPOWERMENT COUNCIL BUMIPUTRA ECONOMIC EMPOWERMENT COUNCIL BY MALAYSIAN PRIME MINISTER YAB DATO’ SRI MOHD NAJIB BIN TUN HAJI ABDUL RAZAK ON SEPTEMBER 14, 2013 (SATURDAY), TIME: 10.00 AM, AT DEWAN AGONG TUANKU CANSELOR, UNIVERSITI TEKNOLOGI MARA, SHAH ALAM, SELANGOR.


Bismillahirrahmannirrahim


 Assalamualaikum Warahmatullahi Wabarakatuh and peace be upon you.


 1. God willing, thanks to Allah Subhanahu Wa Ta’ala because with his consent we are gathered this morning, at Dewan Agong Tuanku Canselor of Universiti Teknologi MARA's Main Campus, an institution which symbolises and is a symbolism of the relentless struggle of the Malays and Bumiputera.


 2. First of all, on behalf of the government, I record the highest appreciation to the people of Malaysia especially the Malay and Bumiputra comunities who had supported, given their mandate and trust to Barisan Nasional at the 13th General Election..to continue the leadership of the nation. What is more overwhelming is, Umno as the mainstay of Barisan Nasional, had been able to increase its parliamentary seat from 79 to 88.


 Ladies and gentlemen,


 3. This proved, regardless of the obstacle, despite the accusations, the Umno Transformation Leadership, with the other Barisan National component parties continued to be strong, continued to be firm and continued to endure efficaciously, as the pick of the people, for the next five years ...to pursue the agenda of the Malays and Bumiputera in our beloved homeland.


 4. After the last General Election was concluded, we heard numerous grumblings, countless laments and dissatisfaction, raised by the Bumiputra communities, on their lot, future and direction, with their children and grandchildren in the land of our birth.



5.  Indeed, we heard your cries, ladies and gentlemen. We too, immerse ourselves in your pulses and restlessness..Yes, indeed!!!...we hear you..we hear you loud and clear.



6.  Since the nation became independent, on Aug 31, 1957, the people had lived in harmony, united, building the nation. On Sept 16, 1963, Sabah and Sarawak merged with us to form Malaysia. Thankfully, the unification, brought us a million blessings. Day after tomorrow, with the grace of god too, we will celebrate the completion of fifty years, Malaysia's golden jubilee celebration, which, god willing, I will be attending in the cities of Kuching and Kota Kinabalu.



7. To celebrate the population of the nation, there were 6.1 million Bumiputras in 1970, or 56 percent of the populace. The Malays comprised nine main ethnic groups, Orang Asli were divided into 18 categories, Sabah Bumiputras had 40 ethnic groups while Sarawak had 60 ethnic groups.



8. During the 2010 Umno General Assembly, I mentioned that Jawa is Malay, Bugis is Malay, Banjar is also mentioned as Malay, Minangkabau is definitely Malay, those of Acheh origin are Malays, in fact, a convert is defined as Malay, even Mamak and Malbari..have been absorbed as Malays.

  

9. The 2010 Population and Housing Census, showed Malays and Muslim Bumiputras made up 59.7 percent. While, non-Muslim Bumiputras were 7.6 percent of the overall populace. Current projections, as of 2012, estimated the population of Malaysia as 27.4 million people of whom Bumiputras numbered 18.6 million or 67.9 percent.



10. Since Independence, all the Malay and Bumiputra plannings and economic policies by the Government had been enacted based on the calculations founded on the composition of the plural communities. In principle, this had been adopted as a social contract since a long time ago by the people of Malaysia, as agreed to by the founding fathers of our nation, protected and articulated in the Federal Constitution through Article 153, Article 160 (2), Article 161A (6)(a). Also Article 161A (6)(b).



11. Therefore, the Malays and Bumiputras as the core of the national agenda could not be denied by anybody. Indeed, any matter which is national in nature, which does not take into account or neglect the agenda of the Malays and Bumiputras is not fair and just. Ladies and gentlemen,



12. It is important that this must be thoroughly understood by all quarters that we must always be aware and be careful about the Bumiputra Agenda being the National Agenda. This is because if the majority Bumiputra group is not looked after or felt themselves threatened and sidelined, the country may not achieve peace, stability, and we may not achieve our dream of becoming a developed nation which is peaceful and prosperous as aspired in 2020.



13. Thereupon, history has proven in the development of the national economy especially since the New Economic Policy was implemented, not only Malay and Bumiputra, in fact, all Malaysians shared the bounty from god, reaping the benefit together, the result of the national economic development. Clearly, this we had done without taking, or depriving anybody's right but rightly through the creation of new wealth and generating strong economic growth.





14. The chronicles of the world had shown how if a government failed to play its pro-active part in balancing the socioeconomy fairly, between the haves and have nots, between capitalists and workers, between land owners and tenants, between white collar workers and blue collar workers, it would be and is the harbinger of catastrophes. 





15. In retrospect, the New Economic Policy, namely, NEP had been introduced in 1971 by the late Tun Abdul Razak, my father, to tackle the issue of inter-ethnic socioeconomic imbalances and poverty erradication following the May 13, 1969 tragedy.





 16. That's how the New Economic Policy was implemented between 1971 and 1990. Since 1965 until 2010, 10 Malaysia plans and three Long Term Plans had been implemented.





 17. The National Development Plan was between 1991 and 2000. Later, there was the National Vision Policy traversing 2001 to 2010. In the meantime, I also launched the National Transformation Policy, during the tabling of Budget 2010, as the axial reinforcement and a catalyst for achieving Vision 2020.





18. Since independence, the government had created numerous instruments and institutions for the Malays and Bumiputras, among which were Bank Bumiputera, Tabung Haji, MARA, FELDA, RISDA, FELCRA, UDA, PERNAS, DARA, JENGKA, KETENGAH and KESEDAR. The third Prime Minister, Tun Hussein Onn on his part, had set up Permodalan Nasional Berhad and launched Skim Amanah Saham Nasional.





19. As we also know, the interest of Bumiputra had been further strengthened by the fourth Prime Minister Tun Dr. Mahathir through the privatisation policy and Vision 2020, which became the current track on which the nation is progressing. The fifth Prime Minister, Tun Abdullah had created corridors to boost regional economic development.   





20. Since I took over the administration of the nation, the government had launched the New Economic Models, which aspired to turn Malaysia into a developed, high income nation, with balanced growth, witnessing the Malay and Bumiputra communities on par with other communities with the advent of a developed nation status in seven years.





21. Furthermore, the New Economic Model introduces an inclusive development approach based on growth with equity to ensure all communities in Malaysia obtain benefit from economic development and the nation's riches.





22. Meanwhile, the 10th Malaysia Plan, starting from 2011 to 2015, is aimed at providing fair opportunities to all Malaysians, regardless of ethnic groups or geographical position, to be together involved in all economic activities. This is based on the principle of friendly market, based on need, transparency and merit. But the meritocracy here meant competition among Bumiputra. 



23. The government had also introduced the Government Transformation Programme and Economic Transformation Programme to form a national economic development ecosystem which is strong and resilient. Due to the implementation of the transformation programme, the national economic growth had recorded a strong growth in an uncertain global economy. In 2011 and 2012, the rate of growth of the national economy was 5.1 and 5.6, respectively.



 24. What I want to stress here, that is, continuous growth such as this is crucial, because, firstly, only with growth can we distribute the riches of the nation to all Malaysians.       Ladies and gentlemen,





25. Through a careful and wise economic planning, the standard of living of Bumiputra have gone up. For example, the Bumiputra monthly average household income had gone up from RM172 in the 1970s to RM4,457 in 2012 or almost 2,500 percent in 42 years.





26. The Bumiputra poverty rate had gone down from 64.8 percent in the 1970s to 2.2 percent in 2012. The Bumiputra corporate company equity rate had also gone up from only 2.4 percent in the 1970s to 23.5 percent in 2011.





27. Furthermore, except for several specific employment sectors, the number of Bumiputra employed in the professional category, especially those qualified as medical doctors, engineers and lawyers had approached the percentages of the racial composition.   28. This proved the New Economic Policy, as a preliminary measure had been successful in tackling the gap between the communities in the effort to develop the socioeconomy of the Bumiputra community. Clearly, during the last four decades, the Bumiputra community had entered the first phase of the transformation.





29, Nevertheless, the government is aware that there still exists the disparity in income between the ethnic groups. For example, in 2011, the average monthly income of the Chinese was higher than Bumiputra by a ratio of 1:43.





30. In the context of corporate company equity ownership, we have yet to achieve a target of at least 30 percent. Our effective control on corporate companies currently is only around 10 percent. The government also understands that the involvement of the Bumiputra communities in entrepreneurship activities is still insignificant and the majority is at the small and micro levels.





31, As such, Ladies and Gentlemen, on the support given by Malays and Bumiputra at the 13th General Election recently, today the government decides to make a big shift to implement concrete and total strategies and approaches.





32. This meaningful and historical meeting, we name the Bumiputra Economic Empowerment Council. All these, we undertake, to look after the lot of the Malay and Bumiputra communities, since the past, presently and forever. The Empowerment of the Bumiputera Economy focuses on five major strategies.





Ladies and Gentlemen,  The Focus of the First Empowerment :  ENABLE BUMIPUTRA HUMAN CAPITAL



33. As we understand, human capital is the most important aspect in developing a community. The government, in truth, had been successful in emplacing Bumiputra students in local and foreign public institutions of higher learning. As such, the next phase is to empower the Bumiputra human capital leading towards matching qualifications and skills with the needs of the market.



34. Towards this end, firstly, for youths with low academic qualifications and skill levels, the government had increased skills boosting programmes to provide a second chance so they would have more opportunities to get employments.



35. In this aspect too, reskilling programmes are escalated. Towards this end, additional allocations would be given to GiatMARA to procure the latest high technology equipment to carry out training programmes. Meanwhile, the number of training programmes handled by National Youth Skills Institute would also be increased by adopting the two shifts approach.



36. Secondly, to the unemployed Bumiputra graduates, the government will intensify training programmes to boost their marketability, to suit the need of the industry. For this purpose, programmes such as 1Malaysia Training Scheme, Graduate Employability Management Scheme and Skills Steering Programme would be expanded to boost the number of beneficiaries.



37. Thirdly, to boost the number of highly qualified individuals, the related agencies such as the Public Service Department and MARA would expand Post Degree Education Programmes to meet the need of the market especially in critical and high technology sectors.



38. Fourthly, in turning out more Bumiputra professionals, Professional Leadership Programmes under the Bumiputera Education Steering Foundation (YPPB) and similar programmes would be expanded. This will help them obtain recognition as professional and accredited manpower, especially in critical areas such as accountancy, specialist doctors, architecture, engineering and actuarial science.



Ladies and Gentlemen,  Second Empowerment Focus: STRENGTHENING THE BUMIPUTRA EQUITY OWNERSHIP IN THE CORPORATE SECTOR.



39. To date, the maximum limit for each individual in Amanah Saham Bumiputera investment is RM200,000. As such, to encourage participation, especially among the middle Bumiputra group in owning shares, I proudly announce the Skim Amanah Saham Bumiputera 2 or ASB2 would be launched by Permodalan Nasional Berhad with an injection of 10 billion units of shares.



40. Equinas, on its part, will be given the responsibility of taking over the role of spearheading the Skim Jejak Jaya Bumiputera programme. The programme would be transformed through management equity and skill, to guide Bumiputra companies for listing on Bursa Malaysia.





Ladies and Gentlemen,



Third Empowerment Focus: STRENGTHENING BUMIPUTRA NON-FINANCIAL ASSETS.



41. Bumiputra are still lagging in non-financial asset ownership such as houses, industrial premises and commercial complexes. For example, in 2012, the transaction of residential homes recorded by the National Property Information Centre, indicated only 36.3 percent of transactions of residential homes involving Bumiputra with a value of almost RM18 billion or 26 percent.



42. From another angle, many non-financial assets such as property among Muslim Bumiputra, which were not managed in an orderly manner or neglected had caused the value of the assets to become low. As such, to optimise the value and benefit of the assets, for starters, Malaysian Wakaf Foundation would be spruced up and upgraded into a corporate entity.



43. The roles of property institutions such as Pelaburan Hartanah Berhad, Majlis Amanah Rakyat and Perbadanan Usahawan Nasional Berhad would be empowered to develop or obtain commercial and industrial property especially at strategic locations nationwide.     



44. In addition, the government is aware the capability of the Bumiputra communities to own homes is low on top of the increasing prices of houses. Towards empowering property ownership, to generate Bumiputra wealth, the government through Syarikat Perumahan Rakyat 1Malaysia or PR1MA and Syarikat Perumahan Negara Berhad with the cooperation of the state governments would increase the number of affordable homes for Bumiputras nationwide.



45. Meanwhile, according to statistics, 58 percent of the 72 percent Malaysians staying in the urban areas are Bumiputra. But, the government knows, the percentage of Bumiputera property ownership in town is low. So, without government intervention to correct the situation, the Bumiputera property ownership is becoming worse.



46. As such, the role of UDA Corporation would be strengthened to help the development of property including homes, complexes and trading spaces, industrial and commercial buildings in urban areas.



47. In connection with this too, I will direct GLCs and GLICs which are involved in the property sector to stress on the development of Bumiputra property especially housing, shoplots and commercial premises.      Ladies and Gentlemen,



Fourth Enpowerment Focus: ENHANCING BUMIPUTRA ENTREPRENUERSHIP AND COMMERCE



48. As we all know, commerce and entrepreneurship are the most important activities to generate income and riches. However, the participation of BumiputraS in such activities is low because of several constraints faced including outdated production technology, lack of access to funds and capital and limited markets.



49. In overcoming the issue of access to financing funds for small and medium entrepreneurs, the roles of Bumiputra entrepreneur agencies such as Amanah Ikhtiar Malaysia, TEKUN Nasional, MARA and PUNB would be strengthened so that the number of Bumiputra entrepreneur recipients would increase, including in Sabah and Sarawak.



50. In this regard, I am happy to announce, an additional allocation of RM300 million for Amanah Ikhtiar Malaysia for five years. The number of friends of Amanah Ikhtiar Malaysia, the majority of whom are women, is targeted to rise from 350,000 people to 500,000 people in 2015.



Ladies and Gentlemen,



51. At this opportunity too, I announce an additional allocation of RM700 million for TEKUN Nasional. The number of TEKUN entrepreneurs is also expected to go up from 270,000 this year to 370,000 in 2015.



52. In response to the laments of entreprenuers who were encountering problems of market access, I will direct all ministries and GLC to strengthen their Bumiputra vendor development systems. The selection of vendors must be based on merit among Bumiputras. In this manner, Bumiputra entrepreneurs could be capable of becoming strong and progressive.



53. In line with this, I also want the vendor contract and concession periods to be syncronised with the bank loan repayment periods so their projects could run smoothly.



54. In connection with empowering the Vendor Development Programme or VDP, Petronas must boost its VDP programme, to strengthen its supply chain for the oil and gas sectors. The same goes for Tenaga Nasional in the energy sector, Telekom Malaysia and AXIATA in the communication sector, UEM in construction while Sime Darby and Felda Global Ventures for the plantation sector.



55. With the empowerment of the Bumiputra economy too, I want all Chief Executive Officers in GLCs to fix targets on the participation of Bumiputra including acquisitions awarded to vendors. This should be included in the Key Peformance Index for the Chief Executive Officers of the respective companies.



56. In this regard, I am happy to share that in the oil and gas sector between now and 2017, Petronas is implementing and will carry out several main upstream and downstream projects. Through these projects, we have worked out so that Bumiputra companies would benefit from contracts worth RM20 billion each year for upstream and downstream service work.



57. The shelf life of such facilities are usually about 25 years or more. It is estimated at least 22 critical work scopes would be created to benefit Bumiputra companies.      Ladies and Gentlemen,



58. To tackle the issue of supply chain, the government through GLC and GLIC would develop a group of Bumiputra entrepreneurs who would involve themselves in activities related to manufacturing and industrialisation which have potentials and higher value-added. In this context, GLC and GLIC would helm effort to create several Bumiputra consortiums in the sectors involved.



59. The privatisation programme, generally, had succeeded in becoming catalysts to create successful Bumiputra individuals and companies. As such, to escalate the programme, the Private Public Cooperation Unit or UKAS will take the initiative to identify selectively any viable government service to be privatised to Bumiputra.



60.  In a move to ensure opportunities for Bumiputra companies to obtain contracts and in preparation to compete in the future, the carve out policy would be expanded to other big projects under the ministry, GLCs and GLICs. This policy was successfully carried out in the MRT projects where 47 percent or nine billion ringgit were awarded to Bumiputra companies selected on meritocracy.



61. For example, four additional projects which had been identified to take part in the programme are Merdeka Heritage Tower Project, Bukit Bintang City Centre, MATRADE Exhibition Centre and the Sungai Buluh Rubber Research Institute Development programme.



62. In furtherance of the agenda, it is appropriate that we build a New Bumiputra Entrepreneur Community that is resilient, competitive, innovative and daring to take risks. They also must have a deep interest and are passionate about participating in new knowledge-based fields such as information technology, biotechnology and green technology.



63.  Towards this aim, a new and unique financing scheme named Bumiputra New Entrepreneurs Starting Scheme or SUPERB would be introduced. The scheme is aimed at aiding start-up companies. For this purpose, an allocation of RM100 million would be provided in a three-year period.



64.  SUPERB will provide grants up to RM500,000 to creative and innovative new entrepreneurs in strategic sectors which had big potentials in the future.



65.  The selection of Bumiputra entrepreneurs would be based on merit and would be done by a panel of entrepreneurs who are already successful. Furthermore, new entrepreneurs who were picked would also be mentored by those who were already successful.



Focus on the Fifth Empowerment: STRENGTHENING THE SERVICE DELIVERY ECOSYSTEM



66. As I have mentioned, the government hears the expressions of feelings emanating from the Bumiputra communities on their level of participation in socioeconomic development programmes. As such, to ensure the socioeconomic development of Bumiputra were effectively implemented, the delivery system would be streamlined and compacted to create an efficient, comprehensive and constructive ecosystem.



67. For this, Bumiputra Development Units or UPB would be created in all ministries. The Bumiputra Development Unit is responsible for formulating suggestions and implementing Bumiputra Agenda initiatives.



68. Appreciating the interest and struggles of Bumiputra, I wish to quote seven wills by the Nine Malay Rulers when consenting to the independence agreement to set up a federation.  TRULY:



"We declare and we keep for you and we allow you to declare and keep for your children and grandchildren, other than the mountains, lakes and forest reserves,

Malay Reserve land up to a ratio of 50 percent, the rest you, together with the other communities, may grab".        Ladies and Gentlemen,



69. This will is very clear. It has stated the equity and the ownership of the Malays and later expanded to Bumiputra, through the unification of Sabah and Sarawak when Malaysia was set up 50 years ago.



 70. Nevertheless, on behalf of the Government and from the bottom of my heart, I would like to urge all quarters, not to misconstrue the Bumiputera economic empowerment measures. We will implement all these initiatives and strategies without trampling on the interests of other groups or deny their rights.

Monday, September 16, 2013

Allocating weath/opportunities amongst ethnic groups not the solution to ensure equitable distribution of wealth amongst persons/families/households in Malaysia

Ethnic group data does not paint a TRUE picture of how wealth/income have been distributed amongst the different individual persons/households within that ethnic group.

There are 100 durians - and A, a Malay, is given 49 and B another Malay is given 1 - and the data will reflect that Malays got 50% of the Durians - but in reality it has not been equitably divided, and A has got 49.

In short giving a small group of Malay/'Bumiputra a lion's share of allocation meant to have the end result of a more equitable distribution of wealth in Malaysia does not achieve what should be the REAL object of a justice loving government - to ensure an equitable distribution of wealth amongst all its people - persons and families/households.

Likewise, to say that this other ethnic group has XXX % of the wealth, for in truth it is just a few in that ethnic group - not all who may have the BIG share of  wealth/resources, and the majority are still poor and in need of assistance..

I say that our national focus must be helping the POOR Malaysians, irrespective of ethnicity, religion or cultural identity.

Distribution of Wealth/Benefits/Opportunities among Malaysians just acrros ethnic lines has failed...and was doomed to fail right from the start - we have to look at helping poor Malaysians and households, and BR1M has already moved in this right directions - and maybe this OPTION FOR THE POOR should continue in this way.

It is only the poor and the marginalised that needs (or deserves) 'Special Treatement' so that they too will one day be able to enjoy a Decent Sustainable Livelihood.

Wednesday, September 11, 2013

18 DRB Hicom dismissed workers and family picket at Prime Minister's Office in Putrajaya






Background
 
On 3/5/2013, a group of 18 workers submitted the MTUC memorandum to one of the contesting candidates in the Pekan parliamentary constituency, which also happens to be the constituency that the Prime Minister of Malaysia was contesting. The 13th General Elections was held on 5/5/2013, and these workers were trying to get commitments for worker demands/rights from the candidates before voting day.

HICOM Automotive Manufacturers (Malaysia) Sdn Bhd, which assembles automobiles for Suzuki, Mercedes-Benz and Volkswagen, has issued show cause letters on  22/5/2013 to 16 workers, and speedily proceeded with the 'Domestic Inquiry' which began on 11/6/2013. ISUZU HICOM Malaysia Sdn Bhd, that assembles automobiles for Isuzu, also issued show cause letters to 2 workers and conducted domestic inquiry.
* The Domestic Inquiry for 16 workers was done in One(1) day, and the  National Union of Transport Equipments & Allied Indutries Workers(NUTEAIW) were not allowed to represent the workers in the DI - only the members at the factories concerned or the 'work site committee of the Union' were allowed to represent these workers. Sadly, NUTEAIW seem to have not challenged this deprivation of the best representation at that time.The collective bargaining agreement is between NUTEAIW and the factory.


19/8/2013 - all 18 workers were terminated

20/8/2013 - National Union of Transport Equipments & Allied Indutries Workers(NUTEAIW), being the Union the said workers belonged to, issued a Media Statement, "Termination action against workers exercising their political rights is abhorred"
 
 

Saturday, September 07, 2013

21 million poor Malaysians in need of government financial aid? Poverty line income should be increased to RM3,000 in line with BR1M

It could be said that Malaysia's BN government inadvertently admitted that Malaysian households earning less than RM3,000, and bachelors(possibly living alone) who earn RM2,000 are poor and in need of government financial aid to survive. It follows that this maybe this should now be the new poverty line income, which determines how many Malaysians are poor.

The BR1M (1Malaysia People's Aid) programme has admitted that households earning RM3,000 or less require direct financial assistance. (Say, that a household is made up of an average of 4 persons, that means the number who were assisted in 2013 is 4.8mil X 4 =  19.2 million)

Bachelors earning less than RM2,000 monthly that were assisted was 2 million.

That makes the estimated total number of Malaysians that needed welfare - in the form of government financial aid is about 21 million, and this is shocking.

Malaysia's total population is about 29 million, and the government by its BR1M exercise has admitted that 21/29 (or about 72%) of Malaysians are 'poor' and in need for direct financial aid by the government to survive. 

This means that all the wealth in Malaysia is not being equitably distributed, and the number of Poor is on the rise.


This year[2012], 4.2 million people benefited from the BR1M payment, involving an allocation of RM2.1 billion. - New Straits Times, 1/1/2013, BR1M 2.0 to start next month
THE payment of the 1Malaysia People's Aid 2.0 (BR1M 2.0) will begin in February, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said yesterday. He said in a statement that BR1M 2.0, involving an allocation of RM3 billion, was expected to benefit 4.3 million households and 2.7 million single unmarried individuals aged 21 and above.- New Straits Times, 1/1/2013, BR1M 2.0 to start next month

The government spent RM2.9 billion for the distribution of the second wave of 1Malaysia People's Aid (BR1M 2.0) to some 6.8 million recipients at the beginning of this year, Deputy Finance Minister Datuk Ahmad Maslan said in parliament today.

From the total number of recipients, 4.8 million were those with a household income of less than RM3,000 and two million others were bachelors earning below RM2,000. - New Straits Times, 1/7/2013, Govt spent RM2.9b for BR1M 2.0
And, the government is now planning to increase the amount of aid given to Malaysian poor that require financial assistance in coming years, and this is good. There is also plans to divide the amount given equally between husband and wife..and this also fair.

Ahmad[Deputy Finance Minister Datuk Ahmad Maslan] also said the government would fulfil its promise of increasing the BR1M allocation from RM250 to RM600 for bachelors and RM500 to RM1200 for households, but would do it in stages within five years. "The ministry is also mulling over several other proposals regarding the disbursement of BR1M for households, which includes dividing the amount equally between husband and wife," he added. - New Straits Times, 1/7/2013, Govt spent RM2.9b for BR1M 2.0
Some may say that it is not true that there are so many Malaysian poor in need of financial assistance, but I would disagree for if not, do we want to say that it was purely a 'vote buying exercise' - I think not.

It is good that Malaysian government has at last admitted who really is poor, and in need of immediate financial assistance, and this time the figure is much more reasonable compared to the RM900 minimum wage figure. I say, that we must raise our minimum wage to RM2,000 (or at the very least RM1,500) to be in line with the BR1M figures. The Deputy Finance Minister in Parliament rightly said, ""This has nothing to do with the number of hardcore poor Malaysians,”- but it certainly is reflective of the number of poor in Malaysia. Wonder what is the number of hardcore poor?
BR1M must be made a right - not a discretionary practice. We need a law that guarantees financial assistance for the poor in Malaysia, and the law will provide it, and also provide qualifications for entitlement, methods of application/appeal, means of disbursements, frequency of disbursements, etc 
Giving everyone the same amount also not right. The poorer Malaysians deserve more financial assistance that the less poorer Malaysians - there must be a scale set for the financial aid entitlements.
Dignity - we have consider the dignity of Malaysians as well. The need to apply, the need to go line up and get vouchers in public assemblies(forced to wait for some politician to come and make a speech), the need to then go to banks to cash out vouchers need to change. Monies could be directly banked into bank accounts of these Malaysian poor, or cheques in their name sent to them by post or worse that they go some government department and collect it.
Lump sum payment may also need to be reviewed - maybe it should be staggered quarterly payments, or monthly payments.
Other means to assist Malaysia's poor also need to be considered. Maybe making necessary food items controlled items where the price is set. At least, all Malaysians will then be able to get a staple diet daily. Proposed priced controlled items must be cooking gas, cooking oil, rice, flour, chicken, egg, bread...(some already in the controlled price list but many other basic items like egg, chicken,...is not there.
Review rates for water and electricity for homes - keep it low. Review 'cukai pintu' for human dwellings. 
Fuel subsidy maybe should be given to individual persons private motor-bikes and cars.
We need to do more to end poverty in Malaysia and ensure a more equitable distribution in income...


Thursday, September 05, 2013

Malaysian government failings the reason for still so many undocumented migrants(illegal foreigners)?

Big crackdown on undocumented migrant workers in Malaysia - but what is coming to light is disturbing, i.e. allegations from migrant workers that they have been CHEATED - They believed that they were documented migrant workers, some after the 6P exercise in 2011.{In fact, migrants were still being cheated last year, believing that the legalization was still ongoing}

The Malaysian government should have used public servants (government officials) for the registration and legalization exercise rather that appointing persons/private sector entities to do their work. It is these 'third parties' and maybe also other third parties that pretended to be government appointed/authorized agents who may be at fault. After all, look at the answer they gave in Parliament - it was a private funding initiative - but who was this 'private sector'? Was it the recruitment agencies? Who?Who funded the 6P programme? - Private Funding Initiative (PFI)? So who funded, and why?Happily the government announced that they spend nothing, as no accounts were given as it was a PFI,

Now, on 10/1/2013 the Government of Malaysia clearly stated that the 6P Migrant Registration & Amnesty program, which began in October 2012  was ended today(10/1/2013) - and there will be no extension....but still migrant workers were being called to register - see one such notice in the following blog posting 32,664 undocumented migrants have been whipped after they were found guilty under the Immigration Act 1959/63.

The government should have conducted this themselves using Immigration Officers(in uniform) and official offices - rather than allow private parties to do it. The migrant worker, who naturally is not fluent in Malay/English is so easily cheated and deceived by 'private' parties...Hence, the fault this time in part lies with the government

The direct employment by Employers that have work and need workers, who would then be able to identify clearly the migrant worker before entering into an employment agreement and bringing them to Malaysia is always the BEST way. But, if the government uses 'contractors for labour' who bring in migrant workers in bulk with the hope of satisfying the demands of businesses/factories that need workers - there is a problem. What if the worker is not suitable, the factory/business just pick up the phone and tell the 'contractor for labour' to take back this worker and provide another. What happens to the 'rejected' worker - he returns to the 'contractor for labour' who themselves do not have work...so no pay, and may not be able to find a suitable employment for this worker - what happens then? Send the worker back? Well, any migrant worker usually incur substantial debts even before they arrive in Malaysia to work - so returning home is never an option for many who just become undocumented migrant workers hoping to earn enough to settle their debts and go back home with some money for themselves and their families.

The government must there abolish the 'Contractor For Labour System', bring back the 'old' system where the employer goes and finds the best worker for the work he has in Malaysia. Make it also clear that the duration of the employment contract is fixed, i.e. 3 years or 5 years, and if the employer ends the contract prematurely, then he is liable to compensate the migrant worker the remaining duration of the contract - basic wages X months remaining. Blacklist employers who break the laws - not just the company or the business, but also the Directors, CEO/Managers and shareholders. This would ensure that employers are more serious and careful when they choose migrant workers, and enter into employment agreements and thereafter adhere to all their agreed obligations as employer - This will certainly decrease the number of undocumented migrants.

Ensure that migrants, if they lodge complaints at the Labour Department, Industrial Relations Department,... that they may stay and work legally until their claims/cases are settled in these departments/courts... Again that will ensure that employers would stop 'cheating' migrant workers. Now, some employers prefer migrant workers over local workers because (1) they can easily exploit these workers; (2) they can easily cheat them of their monies and they will not be able to complain or get justice - because the employer can get work permits cancelled, and they become undocumented losing rights to continue their claims/cases [If you take the effort, migrant worker can stay but cannot work and will be given a Special Pass, costing the worker RM100 per month, and this usually given for 3 months only - not enough time for access to justice procedures to come to an end.]

The Malaysian government must be serious and stop employers/'contractors for labour'/agents for they really may be root cause for undocumented migrants.

Change the employment policy - allow only direct employment, allow migrant workers who want to change employers the ability to do so and put the onus on new employers to immediately 'register' their new migrant worker.... ABOLISH LEVY...or ensure that it is employers that LEVY not workers. 

Tell us:-
1) How many of these undocumented migrants (illegal) came to Malaysia as documented workers and then became undocumented?
2) How many of these 'illegal migrants' did register under the 6P programme?
3) How many were cheated by 'third parties' who gave them the impression that they were legal? Investigate, find these 'third parties' and prosecute them ... The migrant workers should be now 'legalized'. 
4)....

With regard to those from Myanmmar, make sure that they are not asylum seekers or refugees - for this Malaysia needs to enact a law recognizing refugees and asylum seekers, and providing a procedure for vetting, etc .. {It is not good enough depending on UNHCR - plus the fact in Malaysian law, the refugee and/or asylum seeker is still not statutorily recognized}


 

Double blow for man cheated by '6P agent', then arrested
 
EXCLUSIVE A Myanmarese migrant was arrested on Tuesday night despite having lodged a police report last month alleging that he had been cheated of his passport and thousands of ringgit by a so-called 6P agent.

Picked up in Pudu, Kuala Lumpur at about 8pm, the 26-year-old man was among 2,586 nabbed in the massive immigration operation on undocumented migrants, which started on Sunday.

NONEAccording to the police report lodged by the man on Aug 12, he had paid an agent operating in Lebuh Pudu RM3,600 and surrendered his passport as the agent claimed this was required for the 6P migrant legalisation exercise.

"She took my original passport (passport number withheld) and RM3,600 for the processing fee and she said after the process was done, she would call me for a medical check up," he said.

He said that the agent, a Myanmarese woman allegedly married to a Malaysian, then gave him a receipt but he never heard from her again.

He also claimed he had gone to her to renew his work permit which was then expiring.

The agent provided the man with copies of documents including one purportedly issued by the Home Ministry which states that the man has been approved to be on the 6P list.

Immigration and ministry letters
The man was also given a copy of his "registration slip", purportedly issued by the Immigration Department dated Aug 12, 2011.

Also provided to him was a copy of a letter from a Home Ministry official to the Myanmar Embassy dated Nov 29, 2011 stating that the man is already legalised under the 6P programme.

Malaysiakini is withholding the name of the Myanmarese man for his safety, as he previously claimed that the agent had hired thugs who stopped those allegedly cheated from approaching the agent's place of business.

NONEThe portal is also withholding the name of the purported agent, as they have yet to respond to requests for response.

Checks on the Home Ministry website showed that the agent is not part of the list of officially-appointed 6P agents.

According to Malaysian Trades Union Congress labour advocate Peter Kanadiah, at least 26 Myanmarese workers have lodged police reports against the same agent but no action has been taken.

"We have also brought the matter to the police, the Immigration Department and the Home Ministry. They are well aware of it," said Kanadiah.

Malaysiakini last week emailed the ministry official on the matter, and provided the reference numbers of the letters he had appeared to have signed.

He has not replied to the email, nor has he been available at the telephone number listed on the ministry website.

'Those being processed will be freed'

NONEMalaysiakini has also made various calls to Immigration Department director-general Alias Ahmad (right) for clarification, but the calls and text messages have been unanswered.

However, he was reported by The Star as saying that workers whose 6P registration is still being processed will be freed as long as they had not overstayed their visas.

The 6P legalisation programme ran from July 2011 to April 2012 for registration and legalisation of foreign workers, through 336 companies appointed by the Home Ministry.

A total of 393,358 illegal immigrants were legalised for work at 76,195 premises as at April 10, 2012 while another 127,503 have been granted amnesty and allowed to return to their countries of origin.

The government also earned some RM1.533 billion in levies as at April 10, 2012. - Malaysiakini, 5/9/2013. Double blow for man cheated by '6P agent', then arrested

 


Tuesday, September 03, 2013

Malaysians want to be independent financially - BRIM not a RIGHT but a handout from time to time creating dependence on PM Najib and the BN government

The prices of RON95 petrol and diesel rose by 20 sen today, and again it was done suddenly and secretly. This BN government asked consumers to shift to RON95 from RON97 with the assurance that the government would keep the price of RON95 low - and many Malaysians, despite the negative consequence of changing fuel to their vehicles did so - and yet again JANJI TIDAK DITEPATI - and the people have been betrayed yet again, and now will have to bear with the increase.

Why is the timing of these 'increases' kept secret? - we were informed of the price hike hours before it happened, and as before many rushed to fill up their fuel tanks to safe a few ringgit before midnight. I wonder whether friends of the PM and the government knew about it earlier, and filled up their fuel tanks earlier?

MAKE BRIM OR FINANCIAL ASSISTANCE A RIGHT IN LAW - no more at the discretion of the PM and his government

To compensate the increased cost of living, the government is talking about increasing BR1M payouts. Hello, this BR1M entitlement is at present not a right in law - it depends on the discretion ('budibicara') of the Prime Minister and his cabinet. Why don't they past an Act of Parliament (a law) guaranteeing the receipt of this 'BR1M' or financial assistance to those earning low income. That Act can stipulate the who exactly will benefit, i.e. based on income per month, and really there must be some sort of sliding scale, to ensure that poorer persons and households benefit more. Then, it will be a RIGHT, and Malaysians do not have to wait around like 'beggars' for financial assistance from the government.

We had BR1M in 2012, 2013...but will it be there in 2014, 2015 and every year thereafter? We do not know, do we? 

Handing over Government discretionary financial assistance to the elderly, poor persons and households over the years have much to be desired...

(a) In one instance, for warga mas, people were asked to go to a particular dewan, wait for hours until the politician came and gave their speeches, and then they had to line up and sign as they received monies in brown envelopes - oddly, different people allegedly found differing amounts of monies. Was it race based? Or was it just like a 'lottery' where it all depended on luck? I had wondered why the envelopes did not have the names of the recipients, and there was no announcement about how much was in those envelopes? - Maybe all envelopes were meant to have the same amount, and some persons had been naughty and packeted some monies and that was the reason for the difference in sums received? Maybe some not entitled had taken the envelopes that were never claimed by the elderly? After all, was all those entitled aware of this 'financial assistance'? 

(b) Then on another occassion, they started giving 'vouchers' and again the name of the recipient was not printed on the said vouchers, and after receiving the vouchers, the recipients were to go to designated banks to exchange the vouchers for cash.. [Again, what was there from preventing those not entitled getting these vouchers and cashing out for cash..]

The best way of disbursing monies would be by the issuance of cheques in the name of the beneficiaries, or directly banking it into their bank accounts - this would ensure less 'leakages' and ensure that all those entitled would get the monies.

INCREASE FUEL PRICES WILL RESULT IN INCREASE FOOD AND COST OF LIVING

Well, Najib and his government failed to even ensure that all workers in Malaysia are already enjoying the benefit of mininimum wages  of RM900 per month. There are still many who are not enjoying this right, as this government has granted extension of time for employers to pay workers, some until the end of 2013 - maybe even then not, if further extensions are granted. Now, what has happened is that many workers have also lost existing benefits like loss of certain allowances like 'night shift allowances' etc, as employers restructured worker remuneration packages, something that this government should never have allowed, as minimum wages were meant to only increase basic wages to the new rate. 

Poverty Line Income - what is it today? How much would a Malaysian need for himself and his family/dependents to live a decent life? Everything has gone up - even for TV, now we have to pay a minimum monthly payment of RM32 for ASTRO. In Thailand, for the usual channels like RTM1 and RTM 2, and some other channels subscribers pay no monthly charges - only the one of charges for the instalation of the satellite, etc - but in Malaysia, even to watch government channels, we have to pay. If a minimum meal cost is RM4 (which is difficult to find), then the cost of meals only for an household of 4 having 3 meals a day is RM4 X 3 X 4 X 30 = RM1,440,and if they only had 2 meals a day, then it would be RM960 and that too is higher than Malaysia's average poverty line income. We know the poverty line income of 2009, but what is the poverty line income of 2013?
The Poverty Income Level (PLI) is defined as:

“An income that is necessary to buy a group of foods that would meet the nutritional needs of the members of a household. The income is also to meet other basic necessities such as clothing, rent, fuel and utilities, transport and communications, medical expenses, education and recreation.”

Plainly speaking, the PLI is how much money in a month a Malaysian household needs to meet these eight components.

Though the Government calculates different PLIs for Malaysia’s three regions, the total average PLI is RM800.

For this demonstration, Jayanath uses the Peninsula PLI of RM763.

A household living in the peninsula is considered poor only if its monthly income is below RM763. - Malaysian Insider, 21/7/2010, How poor are we, really?








Is Najib and his BN government, solving the problem of poverty in Malaysia, by simply fixing a 'very low poverty line income', and happily reporting that poverty in Malaysia is slowly being irradicated. We must demand to know what is the present 2013 Poverty Line Income, and also how is it calculated.

Indirectly, the Malaysian BN government has indicated the Poverty Line Income, i.e. RM3,000 for an household, and RM2,000 for a single unmarried individual, when these was the category that was listed as requiring financial assistance to survive - so why don't this government just admit and make this the new Poverty Line Income?

Each household with a monthly income of less than RM3,000 was eligible to receive a one-off payment of RM500 and the single unmarried individuals earning less than RM2,000 were eligible to receive RM250. New Straits Times, 1/1/2013, BR1M 2.0 to start next month
Would government discretionary handouts of RM500 and RM250 overcome the financial difficulties of the poor in Malaysia? I do not think so, as increases in cost of living just erases any benefit.

Fuel prices are up, and the government is talking about 'production cost' - what about transport cost? Is the price of commodities only going to increase by 0.1%? Our government has also shrunk the list of price controlled items over the years, chicken, eggs, rice, milk, etc are not in that list. Controlling prices for festive periods is not enough..Chicken, egg, bread must be a price controlled items - Why are our MPs not fighting for these basic issues that affect all Malaysians
TRADERS have been told not to raise food prices following the move to cut fuel subsidies, which is  unlikely to affect food production costs.Domestic Trade, Cooperatives and Consumerism Minister Datuk Hasan Malek said the ministry's studies showed that the increase in fuel costs was projected to raise food prices by 0.1 per cent."We have done our best to ensure that any move to reduce subsidies would not unfairly burden traders. As such, we see no reason for them to mark up food prices as a result of the rise in fuel costs." - New Straits Times, 3/9/2013, 'Do not hike food prices'
Well, when it comes to petty traders, sundry shops and the small business people at the end of the supply chain, their cost would definitely increase with this increase of fuel prices - and naturally, they who are low-income or middle-income earners would naturally have to increase prices to ensure even SAME profits. The government has not helped them much, and the latest Kedai Rakyat 1 Malaysia(KR1M) and its products also have affected these small business persons. Why open new shops? Why did they not just make available cheaper products that could be marketted by these smaller shops and business persons?

IMPROVED CHEAP PUBLIC TRANSPORT is not in place, as an alternative to private vehicles, and this should have been so before FUEL prices are increased. No, this government is still trying to get ordinary people to BUY private vehicles and use more petrol... We desperately need to improve the public transport system so that people would have the choice to travel to work, to market, to hospiitals, to schools, etc using public transport - reducing the usage of privately owned vehicles - hence reducing FUEL consumption - hence reducing government subsidies...i.e. achieving the same effect.