Home, sweet home for young couples will lead to housing industry boon in M'sia

A NEW Youth Housing Scheme has been set up by the Government to help young couples, whose household income does not exceed RM10,000, buy their first home.

Prime Minister Datuk Seri Najib Tun Razak said the maximum 35-year loan offered a funding limit not exceeding RM500,000 for married youth, aged between 25 and 40 years old.

“The Government will provide monthly financial assistance of RM200 to borrowers for the first two years to reduce the burden of monthly instalments,” he said.

Najib described the scheme as a smart partnership between the Government, Bank Simpanan Nasional, Employees Provident Fund (EPF) and Cagamas.

The Government will also give a 50% stamp duty exemption on the instrument of transfer and loan agreements, as well as 10% loan guarantee to enable borrowers to obtain full financing, including cost of insurance.

Borrowers can also withdraw from their EPF Account 2 to top up their monthly instalment and other related costs.

“I urge the youth to grab this opportunity which is offered on first-come-first-served basis for 20,000 units only,” he said.

To address the issue of home ow­­nership at affordable prices, RM1.3bil will be allocated to build 80,000 units under the 1Malaysia People’s Housing Programme (PR1MA).

To enable more people to own houses, under the scheme, the cei­ling of household income has been raised from RM8,000 to RM10,000.

“In addition, a Rent-To-Own Scheme will be introduced specifically for individuals who are unable to obtain bank financing,” he said.

RM644mil will be allocated to the National Housing Department (JPN) to build 26,000 units under the People’s Housing Programme (PPR).

He said Syarikat Perumahan Negara Berhad (SPNB) would build 12,000 units of Rumah Mesra Rakyat, 5,000 units of Rumah Idaman Rakyat and 20,000 units of Rumah Aspirasi Rakyat on privately-owned land.

For first-time house buyers, the Government has agreed to extend the 50% stamp duty exemption and increase the purchase limit from RM400,000 to RM500,000.

Exemption will be given until Dec 31, 2016.

The minimum eligibility for hou­sing loans will be increased from RM80,000 to RM120,000 while the maximum eligibility limit will be increased from RM450,000 to RM600,000.

The RM100 application processing fee for housing loan will be abo­lished.

The Government will improve the1Malaysia Civil Servants’ Housing (PPA1M) by reducing the minimum price of houses currently at RM150,000 to RM90,000 per unit.

He added that the qualifying requirement of household income for this would be increased from RM8,000 to RM10,000 per month.

Housing industry boon

PETALING JAYA: Measures under Budget 2015 will positively impact the housing industry, especially in promoting home ownership among the lower and middle income group, said the Real Estate and Housing Developers’ Association Malaysia (Rehda).

The association supported the Government’s effort to raise the ceiling of household income from RM8,000 to RM10,000 for PR1MA homes and the Rent-To-Own scheme to help those unable to obtain financing, said Rehda president Datuk Seri FD Iskandar.

He said Rehda also lauded the new Youth Housing Scheme which would “certainly benefit young couples who wish to own a home.”

He said the 10% loan guarantee to enable borrowers to obtain full financing and the RM200 monthly financial aid would help reduce the burden of borrowers.

HBA secretary-general Chang Kim Loong also said the housing scheme for young married couples was commendable.

However Chang said providing the RM200 subsidy, in the first two-years, may send a wrong message.

He said borrowers may start to spend beyond their means and might end up in financial difficulty after the subsidy ends.

Chang said the Government must also ensure eligible first time house buyers actually stay in these units and not rent it out.

Chang said HBA supported the move to build more affordable housing but wanted these homes to reach the right target market. “These homes must be built at the right place and reasonable prices of between RM150,000 to RM300,000; and not more than RM400,000 in prime locations,” he said.

By Neville Spykerman The Star/Asia News Network

‘First-time house-buyers will spur property market’

GEORGE TOWN: First-time housebuyers are sure to spur the property market following the introduction of the Youth Housing Scheme.

International Real Estate Federation Malaysia vice-president Michael Geh said the scheme announced under Budget 2015 will help them to own property costing less than RM500,000.

He said the property market had been “cool” for the past six months since the developers interest-bearing scheme was abolished, resulting in many first-time buyers unable to obtain bank loans.

“The scheme shows our Government is well aware of the plight faced by this group.

“It will certainly spur the property market,” he said.

The scheme, a smart partnership between the Government, Bank Simpanan Nasional, Employees Provident Fund and Cagamas, is offered on a first-come first-served basis for 20,000 units only.

It offers a funding limit for a first home not exceeding RM500,000 for married couples between 25 and 40 years old with a household income not exceeding RM10,000. The maximum loan period is 35 years.

The Malaysian Association of Hotels Penang Chapter said that the RM89bil from tourism targeted under Budget 2015 was an ambitious figure.

Its chairman Khoo Boo Lim said the RM316mil allocation for various programmes under the Ministry of Tourism and Culture should be used wisely to ensure good returns.

By Tan Sin Chow AND Chong Kah Yuan The Star/Asia News Network

Related post:

Malaysian Tax Budget 2015 Highlights and Snapshots

Najib, who is Finance Minister, had presented his budget speech at 4pm in the Dewan Rakyat on October 10, 2014  Here are highlights: ...

Chinese language advantage and education in M'sia; Don’t turn it into a political tool!

It is bewildering that vernacular schools should be made the scapegoat for race relation issues in this country when our greatest asset is our multi-racial society, which puts us above our Asean neighbours in competing for the economic pie.

MY father sent me and my two elder brothers to study at the St Xavier’s Institution in Penang because he felt we all needed a good education in an English-medium school.

My eldest brother studied at a Chinese school and did not fare well. It was enough for my dad to be convinced that we should all be in a missionary school.

My father Wong Soon Cheong spoke fluent Malay with a thick northern accent and had taught himself to read and write English while he improved his command of Chinese.

Like many Chinese in his time, and even now, they knew that the key to success was education, and the best education facilities were found in the English-medium schools.

When I entered Year 1 in 1968, England was still the economic powerhouse of Europe, and mastering the Queen’s English would be the passport to a brighter future.

Fast forward to 2014 – the economic balance has shifted. China has become a superpower and besides being the biggest producer of just about anything, it is also the biggest market for anyone from anywhere wanting to sell anything.

My biggest regret now is that because I am a product of the English-medium system, I am unable to speak or write in Chinese. The dialects I am able to use, the smattering of Hokkien and Cantonese, is of little value in mainland China.

Anyone who wants to do business in China needs to speak Mandarin. It’s as simple as that, and this writer will be shoved out of the door if he cannot go beyond the initial greetings.

Even in Kuala Lumpur, I would never be employed in any company that has business dealings with China. This is not discrimination as, in the business world, my linguistic handicap cannot be ignored.

By the time my daughter had to be enrolled in a primary school, the scenario had changed. There were no more English-medium schools and the national schools were no longer the first choice for many Chinese parents. They were not only concerned about the quality of education but everyone also knew by then – that was in 1998 – that China would be the country to watch.

This, of course, led to many households being rather mixed up as the English-speaking parents had to grapple with their children being schooled in Chinese.

But it was a simple economic decision, nothing more than that. Most of us had no relatives in China and certainly no political sentiments whatsoever towards China.

As someone who spent all his years in the then English-medium school, I had no affiliation for many things Chinese. I am what many would call a “yellow banana” – a yellow-skinned Chinese but one who is white-hearted. But the global future of China was there for all to see.

When my daughter went to England to do her A-Levels, her school had a full class of students from different nationalities wanting to sit for the Chinese language examination. The school appointed the best teacher to teach the class. Such was the importance it placed on its students acquiring the language skills.

My daughter left for England before the SPM but she returned to Kuala Lumpur to sit for the examination. We wanted to make sure that she cleared this examination and also get a credit in Bahasa Malaysia, which is necessary if she wants to be a lawyer in Malaysia.

Her school in the United Kingdom frowned on her taking leave of absence to take the SPM. After all, how she fared in the BM paper (she got a distinction) would have no bearing on her ongoing studies for the A-Levels.

The Chinese can be described as being very practical people, and we needed to cover all our bases.

The fact is that 90% of Chinese parents today send their children to Chinese primary schools in Malaysia, and that 15% of students studying at the nearly 1,300 Chinese primary schools in the country are non-Chinese.

Even my personal driver, an Indian, sent his daughter to a Chinese primary school. It must have been tough for the parents but she speaks Mandarin fluently, besides Bahasa Malaysia, English and Tamil. It will certainly benefit her in the long run.

Schools in the UK, the bastion of Anglo-Saxon culture, know the global economic value of Chinese. They are making plans to ensure that their children study Chinese so that they won’t be left out.

London Mayor Boris Johnson has been quoted as saying that all students in the UK should study Chinese.

Johnson, who is studying Chinese himself, reportedly suggested that Britons should be learning as much as possible about China, as the East Asian giant continues to expand its global influence.

He said the children would grow up naturally knowing about China’s importance. When quizzed on whether they should also learn Chinese as a standard subject in schools, he told the Press Association: “Why not? Absolutely. My kids are learning it, so why not? Definitely, definitely.”

The mayor told the press he was learning Chinese “from the beginning” as he showed the journalists a folder on which he had written the words “Middle Kingdom” or “China” in the language. He told university students in Beijing that his 16-year-old daughter was learning Chinese and was due to visit China.

Singapore is often used as an example of a nation, despite its Chinese majority population, not having Chinese primary schools. The fact is that every Singaporean has to be schooled in English, and then it is compulsory for them to be schooled in their mother tongue. With special permission, they can also take up an extra subject in one another’s mother tongue languages.

Chinese is therefore a compulsory subject for Chinese students in Singapore while the non-Chinese can choose Malay or Tamil as options. English is a compulsory subject to pass over there.

Now we come to the point I am leading to – why is there a need for anyone to suggest that Chinese and Tamil schools be closed down, supposedly because they are the source of disunity in this country?

It is bewildering that vernacular schools should be made the scapegoat for race relation issues in this country.

I do not think anyone would be so naïve and simplistic, especially politicians, as to actually believe that by abolishing these schools, all the problems will disappear.

Many mono-ethnic countries are highly divisive even though they have the same language, religion or culture, particularly in Eastern Europe and parts of Africa.

Our biggest problem is not whether we are using Bahasa Malaysia, Chinese, English or Tamil to teach – we should be worried over the falling quality of education in our schools and in universities.

We should be losing sleep that 70% of our teachers teaching English actually failed in the competency tests.

And why isn’t anyone worried that our public universities have still not made it into the top-ranked universities in the world?

Or why our students, despite their string of distinctions, are now not getting into Ivy League universities in the United States.

Mandarin, in fact, isn’t enough. We should all be able to speak Arabic because the richest countries are in the Middle East. With so many Arab tourists visiting Malaysia, are there enough Arab-speaking tour guides?

Malaysia’s greatest asset is its multi-racial society, which puts us above our Asean neighbours in competing for the economic pie.

The Mandarin speakers can penetrate markets in China, Taiwan and Hong Kong, the Malay speakers can look after Indonesia, the biggest market in the Asean region, and the Malaysian Indians can make their mark in India. When we work together, we can become very powerful. We should make full use of our combined strength.

Languages are assets, not liabilities. I understand that there are those who believe that only a single-stream school system would unite our young.

Those who called for the closure of Chinese schools should talk to the parents of non-Malay students who study in such schools. Can our politicians just listen and not talk for just a moment, so perhaps they can learn something?

Walk around these schools, see the facilities, check out how discipline is instilled or why parents are called up by the school authorities when their children do not do well.

Certainly, the history of Communist China is not taught there. Neither is anyone brainwashed into voting for the DAP if that’s what the suspicions are all about. The national schools in predominantly Malay Kelantan and Terengganu are the same elsewhere and yet, many of the parents and school leavers have always voted strongly for PAS. Would these schools be regarded as a source of disunity and anti-establishment?

The English-medium schools in my time were regarded as neutral ground, where children of all races came together. But that’s history and our country’s standard of English has taken a free fall since then.

And for the record, before I am accused of being a racist, I wish to emphasise that I voluntarily studied Malay Literature and Islamic History in Sixth Form. When I went to Universiti Kebangsaan Malaysia, I signed up for courses at the Malay Letters Department.

The Islamic Civilization course at UKM is compulsory and I have written many times that fears expressed by some non-Muslim politicians about this course, which they wrongly claimed as a religious indoctrination course, are unwarranted and silly.

We must never be afraid of quality education and the study of multiple languages. How many of our elite politicians send their children to private or international schools in Malaysia or even to the UK or Australia? Some even pack them off to study at the secondary school level overseas, despite telling ordinary Malaysians to study in our schools.

This debate on vernacular schools should not go any further. We have bigger problems ahead to worry about, like the cost of living, the inflationary hike and the weak market sentiments. We are all in the same boat together.

By Wong Chun Wai on the beat The Star/Asia News Network

Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 27 years in various capacities and roles. He is now the group's managing director/chief executive officer and formerly the group chief editor.

On The Beat made its debut on Feb 23 1997 and Chun Wai has penned the column weekly without a break, except for the occasional press holiday when the paper was not published. In May 2011, a compilation of selected articles of On The Beat was published as a book and launched in conjunction with his 50th birthday. Chun Wai also comments on current issues in The Star.



Related post:

Malaysian education: UPSR Exam leaks, okay to cheat our kids !


MCA Youth chief laments missed scholarship



KUALA LUMPUR: In an emotional personal account, MCA Youth chief Chong Sin Woon (pic) shared how he was denied a scholarship despite getting all A’s in the Sijil Pelajaran Malaysia (SPM), but he did not give up.

He said he joined MCA and Bari­san Nasional, which he believed defended the rights of all races.

Chong, who was born in Nilai, Negri Sembilan, told delegates at the 50th MCA Youth annual general assembly that he had many Malay and Indian friends at school and they would skip classes and go to the waterfall together.

However, despite getting straight A’s in the SPM, Chong said he was not given any scholarship and had to pursue Form 6 studies.

“There was no other choice since I didn’t come from a rich family.

<< MCA Youth chief Chong Sin Woon

“When I discovered my Malay friends received Mara scholarships or places at matriculation programmes due to the quota system at that time, my life changed.

“Am I not a Malaysian too? I, too, studied hard. But I didn’t give up and went to Universiti Kebangsaan Malaysia to study economics.

“I joined the MCA as I believe in the Barisan formula, which is to defend all communities in Malay­sia. This is a party that cares for all,” he said to applause from the audience.

Chong, a senator, received a standing ovation from delegates for his impassioned speech which touched on matters such as vernacular schools, race relations and the spirit of the Barisan coalition.

He stressed that the existence of Chinese and Tamil schools was not an obstacle to national unity.

“Nobody should challenge the rights of the Chinese and Indian communities to learn their mother tongue at vernacular schools.

“If we view the matter objectively, Chinese education is no longer solely about the Chinese community alone. Non-Chinese students studying in SJK (C) schools nationwide now comprise 12% of the total number of students,” he said.

Chong also called for Barisan to return to its founding principles, which was nationalism for all races.

“When MCA founder Tun Tan Cheng Lock talked about nationalism, it was for a Malayan nationalism; not for a Chinese type of nationalism. It was never about nationalism for one race. I believe that if Barisan goes back to the foundation laid by our founders, the rakyat will return to support us,” he said.

Chong also thanked Prime Minister Datuk Seri Najib Tun Razak for allocating RM50mil for Chinese primary schools and RM25mil for conforming schools in the Budget 2015.

“When we sang the Barisan Nasional party song earlier in the assembly, a line in the lyrics says Barisan is for all races and that touched me,” he said.

He lamented that every now and then, there seemed to be comments made by others that hurt the feelings of the Chinese and Indians by labelling them as pendatang (foreigners), penumpang (passengers) and even kaum penceroboh (trespassers).

“Wasn’t independence achieved 57 years ago as a result of all the main races in the country?

“Wasn’t the first thing that Tunku Abdul Rahman did upon returning to the country after dealing with the British was to meet with MCA president Tun Tan Cheng Lock?

“Didn’t MCA give its support to the Government in cracking down on the communists who disturbed the country’s peace in the 1960s?” Chong asked.

- The Star/Asia News Network

Umno’s Mohamad Azli cautioned over statement

PETALING JAYA: An MCA leader has cautioned a divisional Umno official against “crossing the line” in suggesting that next month’s Umno annual general assembly should discuss ending the Chinese vernacular school system.

MCA religious harmony bureau chief Datuk Ti Lian Ker said that Petaling Jaya Utara Umno division deputy chief Mohamad Azli Mohemed Saad should accept with an open heart the reminder that he gave him as it was in good faith.

“It is in my interest to caution politicians like Azli who are out to score political brownie points by picking on Chinese education, Chinese culture and who want to use the community as a ‘punching bag’,” he said.

“I did not overreact or become too emotional and I had merely cautioned a fellow comrade in Barisan Nasional not to cross the line,” Ti said, referring to a statement by Azli yesterday in which he denied that his suggestion was seditious.

Azli had said Ti lacked an understanding of Article 152 of the Federal Constitution on the position of the Malay language as well as other vernacular languages.

He said Ti and his colleagues should confront Pakatan Rakyat which had abused vernacular schools by using it as a political platform to brainwash the young to hate the Government.

Ti said that Azli could have expressed his misgivings in a constructive manner.

“The way he chose to react is not going to take the nation anywhere but is going to destroy the very foundation of our religious and racial harmony.”

“Our forefathers have already established the foundation of religious and cultural harmony in Malaysia and there are certain lines that we should not cross,” he said.

Ti said Azli had also wrongly accused him of lodging a police report on the matter.

It was MCA Youth, said Ti, that had lodged a report because they felt that Azli’s comment had breached Section 505 of the Penal Code which criminalises statements inciting communal ill-will.

Ti said Azli should stop being a “loose cannon” and urged him to focus on bigger issues that required their joint effort and attention. - The Star/Asia News Network

HOW ELSE CAN UMNO SURIVIVE? Don’t turn Chinese schools into political tool !

Umno Petaling Jaya Utara division deputy head Mohamad Azli Mohemed Saad accused Chinese primary schools of becoming hotbed for the opposition to spread racial and anti-government sentiments and thus, suggested that the Umno general assembly next month should discuss closing down Chinese primary schools.

Cheras Umno division chief Datuk Seri Syed Ali Al Habshee reiterated the call to abolish Chinese vernacular schools, claiming that the multi-stream education system was a breeding ground for racial discord.

Although the remarks are absurd, they are still supported by the Peninsular Malay Students Federation (GPMS) and Malay rights group Perkasa, reflecting the arrogant attitude and narrow thinking of some Umno members.

It is not uncommon to see politicians manipulate Chinese education issues to gain political capital.

However, remarks unfavourable to Chinese education have become increasingly intense in recent years.

From former Court of Appeal judge Datuk Mohd Noor Abdullah's suggestion of including Chinese education into the national school curriculum which teaches all languages to Deputy Minister in the Prime Minister’s Department Datuk Razali Ibrahim's remarks calling for no more request to build Chinese primary schools and now, Azli's remarks to abolish Chinese primary schools. Apparently, they are not isolated cases.

Singularism has been lingering in Umno and it is harmful to Umno, as well as Barisan Nasional.

It could even destroy national unity. Worse, advanced and more competitive countries have encouraged their people to master multiple languages in this era of globalisation, but our politicians are still embracing extreme singularism.

It is worrisome whether Malaysia can really turn into a developed country.

Chinese primary schools are an important part of the national education system.

Their teachers, syllabuses and teaching materials are all in line with the Education Ministry's curriculum. Just like national primary schools, the syllabuses of Chinese primary schools promote racial harmony and instilling loyalty, as well as patriotism.

It is shameful for politicians to make accusations out of nothing and frame Chinese primary schools as a hotbed of anti-government sentiments, just to gain political capital.

Article 152(1)(b) of the Federal Constitution clearly stated that '"no person shall be prohibited or prevented from using (otherwise than for official purposes), or from teaching or learning, any other language".

Moreover, among the current 600,000 Chinese primary school pupils, 15%, or 80,000 are non-Chinese.

The figure shows that Chinese primary schools are not a stumbling block to national unity, but schools cultivating national talents and attracting pupils of various races.

It is always the time for raising sensitive issues before the annual Umno general assembly is convened.

Some people try to act like a hero while some people make trouble, with different intentions.

But the acts of stirring racial issues have always gotten on the nerves of Chinese community. This time, its grassroots leaders made Chinese primary schools their target.

Apparently, there are other motives behind it, reflecting the internal power struggles in Umno and the approaching storm.

Former prime minister Tun Dr Mahathir Mohamad criticised Prime Minister Datuk Seri Najib Razak in his blog not long ago, declaring withdrawal of his support to Najib.

The move was like sending a clear message to Umno grassroots that they may openly challenge Najib during the general assembly in November.

Although he has stepped down, Dr Mahathir remains influential. The intention of pressuring Najib is obvious when his minions raise the "abolish Chinese primary schools" issue now.

The remarks made by Umno grassroots leaders, of course, cannot represent the government's stand.
However, the "abolish Chinese primary schools" issue has touched on the sensitivities of the Chinese community, triggering resentment and indignation.

Najib and his deputy Tan Sri Muhyiddin Yassin, who is also education minister, must not remain silent.

Instead, they should defend the status of Chinese primary schools to prevent the issue from getting out of hand. In addition, the authorities should also charge Azli and others who make such remarks with sedition, to set an example and eliminate extremist racial remarks.

 Source:  mysinchew.com/malaysia-chronicle.com

Malaysian Tax Budget 2015 Highlights and Snapshots

Najib, who is Finance Minister, had presented his budget speech at 4pm in the Dewan Rakyat on October 10, 2014  Here are highlights:

While Prime Minister Datuk Seri Najib Razak described Budget 2015 as being a balance between the capital economy and people’s economy, analysts said the budget contained little to move markets either way.

This, according to analysts, should be a relief for a country where around 47% of the government’s bonds are held by foreigners.

“I would say probably largely a non-event from the market perspective,” said Wellian Wiranto, an economist at OCBC Bank in Singapore.

“It’s not highlighting anything new…but in many ways the lack of surprises is actually a good thing.”

Read more: http://www.therakyatpost.com/business/2014/10/11/snapshot-budget-2015/#ixzz3FoHBb9tI

* Najib announces the theme for this year's budget as "Budget 2015: The People's Economy".

* The allocation for Budget 2015 is RM273.9 billion, an increase of RM9.8 billion from the last budget.

* Government aims to lower fiscal deficit to 3.0% in 2015 from an expected 3.5% this year

* Operating expenditure RM223.4 billion, development expenditure RM50.5 billion.

* Payments to civil servants of RM65.6 billion is largest operating expenditure item.

*Federal government revenue collection estimated at RM235.2 billion in 2015, an increase of RM10.2 billion from 2014.

* From an economic perspective, when we achieved independence 57 years ago, we developed the country based on agriculture before progressing to a modern industrialised economy. Next, we moved into the upper-middle income phase. We are now moving towards a services-based economy.

* In brief, the objectives, principles and thrusts of the three Outline Perspective Plans, 10th Malaysia Plan, New Economic Policy, National Development Policy, National Vision Policy and since 2010, the National Transformation Policy, have all focused on poverty eradication, increasing income and restructuring of society. This is with the aim to achieve socio-economic goals; diversify the commodity-based economy; human capital development; enhancing competitiveness of the public and private sectors; higher value chain; inclusive development; as well as transformation of the government, economy, social and politics.

* Clearly, our former leaders in their wisdom have carried out responsibilities to develop Malaysia in their own mould. The struggle started with Tunku Abdul Rahman, followed by Tun Abdul Razak who had implemented development and restructured society, to Tun Hussein Onn who maintained peace and unity. Tun Dr Mahathir Mohamad modernised the country while Tun Abdullah Ahmad Badawi emphasised human capital development.

* Further, the present Government is committed to driving growth with a broader approach to place Malaysia on a strong foundation.

* This is my sixth budget since I assumed leadership of the administration, and the country’s 56th budget. The 2015 Budget completes the 10th Malaysia Plan.

* Further, in May 2015, the 11th Malaysia Plan (11MP) will be launched. At the same time, a new approach known as the Malaysian National Development Strategy (MyNDS) is being formulated.

* MyNDS will be a key basis to planning and preparation of programmes and projects under 11MP. The emphasis is on using limited resources optimally, with focus on high-impact projects and programmes at low cost as well as efficient and rapid implementation. This means Budget 2016 will be the trigger to the final five years of Malaysia’s progress to a high-income advanced economy by 2020.

* Many countries such as Korea, Germany, Japan, Taiwan and China began their economic progress based on agriculture and have since moved to an economy that emphasises high level of knowledge, skills, innovation and expertise.

* To remain resilient and competitive, Malaysia must move to an economy based on knowledge, high skills, expertise, creativity and innovation.

* Indeed, from the economic perspective, a rapidly developing country typically generates wealth through capital economy activities. However, the rakyat voice their grievances and complaints through blogs, letters, meetings, interviews and dialogues over the millions spent, billions allocated and various mega projects questioning the benefits to the people.

* In 2015, with the implementation of the Goods and Services Tax (GST) government revenue is estimated at RM23.2 billion. However, as a caring government, we have exempted several goods from GST amounting to RM3.8 billion.

* With the implementation of GST, the Sales and Services Tax (SST), will be abolished resulting in revenue foregone of RM13.8 billion. This means that after deducting RM13.8 billion and RM3.8 billion from a revenue of RM23.2 billion, the Government will have a balance of RM5.6 billion.

* Of the total, RM4.9 billion is channelled back to the people through assistance programmes such as the increase in Bantuan Rakyat 1Malaysia (BR1M). Finally, net revenue collection from GST will only amount to RM690 million.

* Goods and Services Tax (GST) : RON95 petrol, diesel and liquefied petroleum gas (LPG) exempted from GST.

* Revenue from GST in 2015 estimated at RM23.2 billion.

* Exemption of GST on several goods amounting to RM3.8 billion.

* Abolishment of SST will see RM13.8 billion in revenue forgone.

* Net revenue collection from GST will only amount to RM690 million.

* Establish another 20 KR1M in Peninsular Malaysia.

* Set up price watch team comprising consumer associations.

* Strengthen GST Enforcement Unit with 2,270 personnel, Price Monitoring Unit with 1,300 personnel and Consumer Squads with 202,800 volunteers as well as involve 579 mukim and village heads.

* Electricity consumption not subject to GST increased from the first 200 units to 300 units, move to benefit 70% of households.

* Income Tax: Income tax rates to be cut by one to three percentage points. Families with monthly income of less than RM4,000 will not have to pay tax

* From 2016, the corporate tax rate will be reduced by one percentage point from 25% to 24%, and for small and medium sized enterprises to 19% from 20%.

* Infrastructure: LRT3 linking Bandar Utama, Shah Alam and Klang: RM9 billion

* 45-km second MRT line from Selayang to Putrajaya: RM23 bilionThe subsidies rationalisation will continue, Najib said today. - The Malaysian Insider graphics by Heza Kamaruddin, October 10, 2014.The subsidies rationalisation will continue, Najib said today. - The Malaysian Insider graphics by Heza Kamaruddin, October 10, 2014.

* Upgrade of East Cost railway: RM150 million

* 36-km East Klang Valley Expressway (EKVE): RM1.6 billion

* 47-km Damansara-Shah Alam Elevated Expressway: RM4.2 billion

* Subsidies: Government plans to reduce the overall bill for subsidies and cash assistance by 7% to RM37.7 billion in 2015 from RM40.6 billion in 2014.

* Govenment will reform the petroleum subsidy regime soon, to adopt a system that benefits the lower income group.

* Highspeed Broadband: Total of RM2.7 billion will be spent over the next three years to build 1,000 new telecommunications towers and laying of undersea cables.

* Property: Budget extends 50% stamp duty exemption for first time home buyers and increases the purchase limit from RM400,000 to RM500,000. The exemption will be given until the end of 2016.

* A 10% loan guarantee to enable borrowers to obtain full financing including cost of insurance. Borrowers can also withdraw from EPF Account 2 to top up their monthly installment and other related costs.

* This guarantee is offered on a "first come, first served basis’ for 20,000 units only.

* Ceiling of household income for PR1MA homes increased to RM10,000, RM1.3 billion to be allocated to build 80,000 units PR1MA homes.

* Education: RM325 million to be allocated for the 1Malaysia Book Voucher Programme, benefitting about 1.3 million students.

* RM100 schooling assistance to all 5.4 million primary and secondary students to continue.

* A total of RM1.2 billion will be allocated to increase student intake in vocational colleges and community colleges as well as upgrading colleges.

* RM1.05 billion allocated to develop and maintain education facilities, and for school upgrade programmes.

* RM3 billion allocated for education sponsorship via the Public Service Dept (JPA) , Education Ministry and Health Ministry.

* RM30 millon fund set up for training and technical assistance of youth from low income Indian families.

* Health: Tax relief for medical expenses and treatment for serious illnesses such as cancer, kidney failure and heart attack increased to RM6,000 per year.

* 30 more 1Malaysia clinics and a health clinic in Cyberjaya will be built. The Government will station 30 doctors in these clinics.

 * Sports: An allocation of RM103 million to implement a Sporting Nation Blueprint.

* Identify sports talent starting from primary school through Malaysian Talent Identification programme. The programme involves testing, screening and talent specialisation among students.

* Improve the quality of high-performance sports for six selected fields in the first phase - Football, Cycling, Badminton, Sepak Takraw, Swimming and Athletics.

* Public transportation: Provide intercity bus services to those residing outside Kuala Lumpur (KL) but work in KL. The service will be offered with a discounted monthly fare of 30%. For a start, three bus routes will be operational namely the Rawang-KL, Klang-KL and Seremban-KL.

* Provide Electric Train Service (ETS) for Ipoh-Butterworth route starting April 2015.

* Upgrade stage bus services in several states through a contracting system with existing bus companies. The programme will be implemented in phases in Kuching, Ipoh, Seremban, Kuala Terengganu and Kangar.

* Tourism: RM316 million set aside for various programmes under Tourism and Culture Ministry.

* Entrepreneurship: In 2015, TEKUN to provide additional funds of RM500 million, of which RM350 million allocated for Bumiputera entrepreneurs, Young Indian Entrepreneurs Financing Scheme (RM50 million), Young Professional Women Entrepreneurs Development Programme (RM50 million), and Armed Forces Veteran Entrepreneur Development Programme (RM50 million).

* Soft loans totalling RM50 million for SME entrepreneurs from Chinese community, and RM30 million for hawkers and petty traders.

* To attract more expatriate entrepreneurs establish startups in Malaysia, the paid-up capital for startups is set at RM75,000.

* Eligible expatriate startup entrepreneurs will be given work pass for one year.

* Additional allocation of RM30 million to entrepreneurs under programme Skim Usahawan Permulaan Bumiputera (Superb), with participation to be enlarged to include East Malaysian entrepreneurs.

* RM30 million to be allocated through Amanah Ikhtiar Malaysia, to inculcate the spirit of entrepreneurship among Indian women.

* BR1M for those earning RM3,000 and below will be increased to RM950 from RM650.

* For those earning RM3,000 to RM4,000, BR1M increased to RM750 (from RM450).

* For the above two categories, payment will be made in three instalments - January, May and September.

* For those aged 21 and above, with income not exceeeding RM2,000, BR1M increased to RM350 (from RM300) in one-off payment early next year.

* Civil service: Half-month bonus to all civil servants with a minimum payment of RM500 to be paid in January 2015.

* Pensioners to receive special financial assistance of RM250.

* Women now represent only 38% of the total workforce in the country. To enhance the contribution of women in national development, women's opportunities to return to the workplace via 1Malaysia Support for Housewife.

* The government will help also professional women return to the workplace via Program Women Career Comeback.

* Women, Family and Community Development Ministry will get RM2.26 billion to enhance contribution of women.

* Student loans: For students with an outstanding amount in their PTPTN loans, a 20% discount will be given if they make a total repayment of their loan, on or before March 31, 2015.

* NGOs: A one-off grant of RM50 million to creditable NGOs, including uniformed bodies that are involved in community development programmes, unity, social welfare, consumerism, health and security.

* National security: RM17.7 billion allocated to Angkatan Tentera Malaysia, RM9.1 bil to the PDRM, and RM804 mil to Maritime Enforcement Agency Malaysia to strengthen maritime enforcement.

* RM660 million allocated for Eastern Sabah Security Zone for increased security.

* A sum of RM117 million will be allocated to strengthen the role of RELA under the Ministry of Home Affairs for training and capacity building. – October 10, 2014.

‘Goodies’ not enough to offset rising living costs, say consumer groups

Despite more cash handouts, lower income tax and a multitude of items exempt from the goods and services tax (GST), consumer groups said Budget 2015 was not enough to offset rising living costs for Malaysians.

Federation of Malaysian Consumers Association (Fomca) CEO Datuk Paul Selvaraj said consumers would still had to pay a premium for housing as well as petrol because of the lack of public transport.

He also said the lack of government enforcement would give rise to profiteering once the GST was implemented April next year at a rate of 6%.

“It looks like the government has taken certain measures to minimise the impact of GST, many are zero-rated, while there is no tax on petrol.

“But our concern is profiteering. I am concerned that sellers will take advantage of the GST and increase the actual price, so zero-rated items will be sold at inflated prices,” Selvaraj told The Malaysian Insider.

“We feel that all items should be labelled – what is zero-rated and what is taxed. The government should also set up a hotline for consumers to turn to if they are unhappy with their purchase.”

Prime Minister Datuk Seri Najib Razak announced yesterday when tabling the budget that the GST was expected to raise RM23.2 billion in revenue. But RM3.8 billion in zero-rated goods would be deducted from this amount.

Selvaraj also said that despite petrol prices having gone up from last week’s subsidy cut, the government did not address alternatives for the rakyat to wean them off their fuel dependency.

On October 2, the government reduced the fuel subsidy of the RON95 petrol and diesel by 20 sen. Petrol now costs RM2.30 a litre compared with RM2.10, while diesel costs RM2.20 compared with RM2 previously.

“The bus system is not being addressed, and it’s to the point that there is no choice for the ordinary people except to rely on their cars to commute.”

Another issue for the average consumers, said Selvaraj, was housing, with homes either being beyond their means or located too far from the city centre that they would have to pay a premium on petrol for their daily commute.

“There have been many efforts to create affordable housing,

but the government hasn’t done enough to make it difficult for speculators to enter the market. The market should have stronger regulators.”

Consumers Association of Penang (CAP) president S.M. Mohamed Idris said he was sceptical that prices would go down once the GST was implemented, despite the long list of exempted items, including RON95 petrol, diesel, noodles, coffee and tea.

“Even if those are exempt, input cost will go up. Transport cost, the cost of raw materials… in the end, you will still pay more,” he told The Malaysian Insider.

“CAP has never agreed with the GST because we say it’s a regressive tax. They should have implemented the more progressive inheritance tax.”

Mohamed also shrugged off the government’s decision to lower income tax by one to three percentage points, noting that this would not benefit the lower-income groups who did not make enough to qualify for income tax.

“We’re talking about only rich consumers benefitting from this. Can you imagine how many millionaires will now be taxed even less? They should have introduced different income tax rates instead.”

He added that the government made a mistake in not implementing the sin tax, noting the economic and social costs alcohol and cigarette consumption had on Malaysians.

“The BR1M is not likely to offset extra costs. I don’t think anyone has done any research on how effective it is for the people. It’s just one-off,” he added, referring to the 1Malaysia People’s Aid cash vouchers.

Najib announced yesterday that BR1M for the lower-income group would be raised from RM650 to RM950 next year, while households earning between RM3,000 and RM4,000 a month would now receive RM750.

Single people aged 21 and above and not earning more than RM2,000 a month are entitled to BR1M worth RM350, an increase of RM50, said Najib.

Datuk Nadzim Johan, an activist from the Malaysian Muslim Consumers Association, said BR1M should not be permanent.

“Our people are not able to appreciate it and we are afraid that it may not be used effectively. It is a liability,” he said.

Unlike the other consumer groups, Nadzim said the budget was too consumer-friendly to the point that it was counterproductive.

“For example, about 1,000 products are exempted from the GST, it’s almost like most products are not taxed. I also think the margin between the present tax and the new tax is too small.

“All in all, I feel that the budget is too soft and Malaysians can’t appreciate it. There shouldn’t be anything for consumers to complain about.” – October 11, 2014.


- The Malaysian Insiders

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Malaysia's petrol price hike when global crude oil prices declined to 3 years low, a reflection of poor financial management..

Malaysian Internet users, technology trends, evolution and change in telco industry

MAXIS: Data takes dominance

Net effect: According to Lundal, productivity for the future depends on the degree of Internet adoption.

When I came to Malaysia last year, I was assuming that I was going back into an emerging market which is a transition from the place I worked (London).”

“But my perception now is that this is actually a very advanced market,” says Morten Lundal, chief executive officer at Maxis Bhd, whose tenure at the company just crossed the one-year mark as of Oct 1.

Among the reasons that he feels differently about the nation’s technological progress is because of the high smartphone and broadband penetration rate.

“Malaysians’ adoption and smartness when it comes to using (mobile) applications is fully comparable with Europe,” he says.

“People on our network use about 1GB per month. Some devices use more. Android more than iOS devices, I’ve noticed. We have people on Android using about 1.3GB or so per month. Both on prepaid and postpaid, people are using a lot of data in Malaysia.”

However, he points out that the local e-commerce market has yet to fully develop.

“Companies here are still fairly traditional in the way they operate. People have much more (technologically) advanced experiences personally,” Lundal says.

“This is going to change in the next five years, but it hasn’t come about yet… The corporate sector is lagging behind more mature markets in Europe.”

However, on the whole, he regards Malaysians as being “very savvy.”

In addition to common online activities such as the use of search engines, social networking sites and real-time GPS services like Waze, Lundal has noticed several distinct trends amongst Maxis’ various user segments.

For instance, he says youth between the ages of 18 and 25 years tended to favour mobile games and streaming video services such as YouTube. He also found Asian youth to be more attracted to image based social media sites such as Instagram as compared to their European counterparts.

“The Chinese are driving more online shopping than other segments and that’s quite interesting,” he says, adding that the Malay segment is active on online forums, games, social networking and instant messaging whereas the Indian segment is more focused on sports, news, instant messaging and social media.

As for the older generation, Lundal says they tended to be more “news savvy” and spent a lot of time online surfing news portals.

“They also use much more hobby and personal interest sites which are less important to the youth. So they are the more functional users of the Internet whilst the youth are the social users.”

Meanwhile, the migrant workers segment had an obvious preference for international news, particularly from their respective home countries. They also liked online comics more than most Malaysians.

Internet breeds change

One of the good things that Lundal sees out of the growing mobile networks across Malaysia is that it enables the general population to gain better access to the Internet.

Besides that, he says that “innovation for IP (Internet Protocol) communications is tremendous”.

However, he sees the ongoing buzzword of the Internet of Things (IoT) as a mere cliche.

“I first heard about IoT in 1998, I think. It’s like a very old expression and the enablers have been in place for years, but it really hasn’t happened yet. I think it is going to happen now, but in a five year perspective,” he says.

As the Internet continues to impact the way society operates, Lundal envisions a shift in the way things are done in the corporate and public sector.

“Productivity for the future more or less equals to what degree you’ve adopted the Internet,” he points out.

“As the younger workforce demand a more advanced technological infrastructure where they work, I think this will drive a big change in how enterprises and the government operates.”

Another disruptive trend that Lundal has noticed is the way users are moving away from preprogrammed content and websites.

“It’s fascinating to see how people are choosing very segmented niche content and making that their default,” he says.

In particular, he points out that youth, especially in countries like the United States, are preferring to consume news via late night comedies and social networks instead of through traditional channels.

“This unpackaging and unbundling of these channels will cause a massive societal impact and change.”

Courting change: As disruptive technologies and trends take hold, telcos including Maxis are faced with the challenge of evolving its business to meet the growing needs of its subscribers.

Telco evolution

As these trends continue to take shape, telcos across the globe, including Maxis, are faced with the challenge of evolving its business to meet the growing needs of its subscribers.

“As an industry, we as mobile operators were used to connecting people to our services. Now we connect people to the Internet,” says Lundal.

“We’ve gone from a decade of selling enablers like phones and connections to now really leveraging those enablers to change lives and companies.”

One of the major changes being faced by the industry at the moment is the dwindling emphasis on SMS and traditional voice calls.

“As an industry, we haven’t innovated on SMS… It’s the same product as it was when it was launched which is unacceptable, I would say, from a consumer’s perspective,” Lundal says.

“SMS is declining a lot globally and will be gradually replaced by IP communication. But for now it’s still widely used because when people want to be sure that the communication is getting through, they use SMS.”

In contrast, he says voice calls are also declining in importance, but at a much slower pace than was expected.

Lundal expects to see SMS fading in importance within the next three to five years whereas for voice communications, he feels it would only decline over a span of four to eight years.

In response to that, he says revenue models for mobile operators are changing globally to become more data centric.

“About 99% of our costs are driven by data,” Lundal says. “It’s a very dangerous situation indeed to have your revenues coming from voice (calls) while your costs are driven by data which is why there is a shift all over the world. That’s a bit slower in Malaysia as players are getting weaned off their old habits.”

However, he adds that he does not view this change in product emphasis as a threat, but rather “a transition that we all have to go through.”

Road to improvement

Over at Maxis, Lundal shares that the company is keeping pace with these changes in technology in three ways.

Firstly, it aims to project itself as an Internet showcase within the Malaysian economy.

“We would like to be in the forefront on how we adopt the Internet ourselves,” he explains. “We also want to change how Malaysian companies operate and help them in their process of being digitised.”

His vision for the future is that Maxis ought to be viewed as a mobile app.

“I like to take extreme positions in order to make people think differently,” he says. “I said to management that we should close our website in three years’ time. Not entirely close it, but probably it will morph into something else. The key interactions with our company should be through an app.”

Besides that, Lundal shares that Maxis is working on ensuring it offers an “unmatched customer experience” to its subscribers, calling it the company’s “flagship programme.”

“We have just built a new network for 70% of our customers this year. The rest will have that experience by next year. This is so that when it comes to the speed of data networks and dropped call rates, we will be world class,” he says.

He is quick to point out, however, that “top class doesn’t mean it’s perfect.”

But according to him, the number of complaints directed to Maxis in the past year has decreased by as much as 50%. As for dropped calls, he says it is currently at the rate of one in 300 calls.

“There are two reasons for that: our network is dramatically improving even though it’s not perfect and we have also taken some pretty drastic, proactive measures to make life better for customers by taking away any pay-per-use charges (for data usage).”

He is referring to the MaxisOne postpaid plan here, whereby subscribers of this Internet plan are not charged for their phone calls and SMSes.

As for the prepaid side, the company also offers a free basic Internet connection of 64Kbps (kilobits per second) for its Hotlink product which Lundal claims is fulfilling a need that most users face.

“Most Malaysians prepaid customers are connected to high speed data (networks) only six to eight days per month and they’re buying daily passes. For the rest of the time, they’re unconnected and they’re trying to find a WiFi connection,” he says.

Last of all, Lundal shares that Maxis is transforming the way it operates internally as well.

“We’re going to rid ourselves of this habit of using paper processes and use more Cloud and mobile instead,” he says.

He says Maxis plans to implement a new human resource system that is Cloud based and accessible via mobile. It has also launched a new intranet and social networking platform for its employees.

On the whole, Lundal says Maxis is setting new benchmarks for itself to achieve.

“We don’t compare ourselves anymore (to competition) nationally, we compare ourselves internationally,” he says.

Contributed by Susanna Khoo The Star/Asia News Network

Great Waldorf Astoria Hotel NY is now owned by a Chinese company

The worlds’ biggest hotel operator Hilton Worldwide has sold the iconic Waldorf Astoria in New York to a Chinese insurance company for nearly $2 billion, a record for a US hotel. The deal marks the continued Chinese real estate shopping spree in America.

Hilton Worldwide Holdings sold the historic landmark to Beijing-based Anbang Insurance Group for a record breaking $1.95 billion, which is the largest acquisition of US realty by a Chinese buyer.

The hotel will still be operated by Hilton, but is expected to undergo major renovations in the coming years.

Opened in 1931 and offering some of the best views of the Manhattan skyline, the hotel is famed for its elite guest list from US presidents to celebrities like Marilyn Monroe and Elizabeth Taylor.

President Barack Obama books the Presidential Suite when he travels to New York City, following the tradition of every US president since Herbert Hoover. Next time the President stays at the hotel, it will be under Chinese ownership.

The Waldorf Astoria is pictured at 301 Park Avenue in New York October 6, 2014. (Reuters/Brendan McDermid)

Made in USA, owned by China

The sale "will ensure that the Waldorf Astoria New York represents the brand’s world-class standards for generations to come," President and CEO of Hilton Worldwide Christopher Nassetta said in a statement.

China will now own 121 Park Avenue, the latest acquisition in the East’s shopping spree in the West. China’s growing economy, stronger currency, and greater access to credit has enticed buyers to invest in the US.

“What we are witnessing is the greatest transfer of wealth in human history. America’s wealth, America’s productive capacity, the capital that has been accumulated over a couple of centuries of industrial growth, is being transferred to East. Asia and China in particular at a volume and speed that has never been seen before,” Curtis Ellis, Executive Director of the American Jobs Alliance, told RT.

Chinese insurers have more than $14 billion available to spend on real estate abroad according to a study by global commercial property and real estate adviser CBRE.

The General Motors building was bought by Chinese investor Zhang Xin last year. Photo taken March 8, 2013. (Reuters/Shannon Stapleton)

In Manhattan alone in recent years, Chinese investors have bought some of the city’s most famous buildings. Zhang Xin, the co-founder of China Ltd bought a stake in Manhattan’s GM building last year, and another Chinese company, Fosun International Ltd, picked up shares in the Chase Manhattan Plaza.

In 1989, Japanese Mitsubishi Estate Company bought a controlling stake in New York’s Rockefeller Center, also a staple in the city's architecture.

In 1989, Japanese investor Mitsubishi Estate Company bought a 51% stake in the Rockefeller Center. (Reuters/Carlo Allegri)

Two is the limit

The Chinese realty boom in the US is that Beijing no longer permits individuals to own more than two properties in China.

China is the leading foreign buyer of US properties. According to the National Realtors Association, between March 2013 and March 2014, the Chinese spent $22 billion on US homes, with more than 75 percent of the purchases paid in cash.

The Chinese are also putting money into America’s most expensive homes that have an average price to half a million dollars. An average American house costs $200,000.
- http://rt.com/

Chinese Firm Pays Record Price for Waldorf Astoria 

The lobby of New York's Waldorf Astoria hotel, Oct. 6, 2014.

Hilton Worldwide is selling the Waldorf Astoria hotel in New York City to a Chinese company for $1.95 billion. The buyer -- Anbang Insurance Group -- will pay one of highest prices ever for a U.S. hotel. Hilton Worldwide says it will use the money from the sale to buy other hotels in the United States. As part of the deal, Hilton will continue to operate the Waldorf Astoria for the next 100 years.

 

The Chinese buyer has said it will invest in remodeling the famous property on Park Avenue to bring it back to its “historical grandeur.”

Reports say the deal is the largest for a Chinese company buying a U.S. building. Chinese investors increasingly have become interested in U.S. properties. Homes -- especially costly ones -- are considered a good investment. The National Association of Realtors says China’s spending on homes in the U.S. has increased sharply. The trade group estimates that Chinese buyers spent $22 billion on real estate properties in the twelve-month period ending in March 2014. That is an increase of 72 percent over the 12-month period before.

Chinese companies also increasingly are seeking businesses outside of the energy and raw materials industries. Last year, a Chinese company bought Smithfield Foods, the largest pork producer in the U.S., for nearly $5 billion.

China holds about $1.2 trillion dollars in United States treasury securities. While these investments are safe, they do not give high returns, or yields. China has increasingly looked for other ways to invest its huge trade surplus with the U.S.

For many years, Japan has had a large trade surplus with the U.S. In the 1980s, Japanese companies bought important U.S. properties.  These included a controlling share of Rockefeller Center, also in New York, in 1989. However, not all of these investments made a profit.

The Waldorf Astoria hotel opened in 1931. It has been a symbol of the wealth and culture of New York City since that time. World leaders and other very famous people have stayed at the hotel. Recently, many delegates to the United Nations General Assembly stayed at the hotel. 
- VOA