Wednesday, July 9, 2008

My question in Parliament on Monday 7 July 2008 was whether the Ministry of International Trade and Industry plans to abolish the Approved Permit (AP) for the import of cars as the use of the AP is not constistent with the requirements of the World Trade Organization (WTO). The Ministry’s reply to my question was that the WTO allows countries to impose control on trade based on requirements or specific interest. The Ministry went on to say that under the National Automotive Policy, the current AP System was still used to monitor and to gather data on the import of vehicles. I feel that the domestic automotive market should not be protected and that the government should allow the free flow of vehicles into the country. This will result in a wider choice of models for consumers and in the long run, will make the local automotive market more competitive. The continued use of APs will jeopardize the welfare and interests of consumers which will result in increased prices of vehicles.
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Tuesday, July 1, 2008

Mid Term Review, Ninth Malaysia Plan

Speech at the Dewan Rakyat

Thank you, Mr Speaker for giving me this opportunity to present my views on the Mid Term Review of the Ninth Malaysia Plan, which was presented by the Prime Minister, YAB Datuk Seri Abdullah Ahmad Badawi last Thursday. The review no doubt, comes at a very important and challenging time of all of us – both the government and people. The government is trying to cope with the high price of fuel and the rakyat has yet to come to grip with the full impact of the increase in fuel prices on their everyday lives. As I am speaking now, the ordinary people are still trying to cope with adjustments as a result of higher prices – ranging from food to transportation and others.

First, I would like to congratulate the Prime Minister, YAB Datuk Seri Abdullah Ahmad Badawi on several bold initiatives. The government’s commitment in allocating an extra RM30 billion for development is commendable. I also applaud the government’s commitment in alleviating poverty and for placing emphasis on people-centric projects. On this note, it is also heartening to note that the government has also decided to shelf several projects considered not essential at this point of time. This clearly reflects the government’s concern for the welfare of the rakyat.

Mr Speaker,
In the context of globalization, for the Malaysian economy to remain competitive and efficient, the economy should be free of protection or assistance. In this context, I fully support the government’s move to systematically and gradually reduce the fuel subsidy. However, it is also important for the government to ensure that the necessary assistance be given to the poor. The government must therefore, work out a mechanism to ensure that whatever subsidies are channeled to the targeted groups such as taxis, small and medium scale transport operators and poor individual motorists and motorcyclists and that the subsidies are not abused.

The government should also consider a more flexible wage system. It cannot be denied that the huge number of foreign workers has pushed down wages for Malaysians and had thrown many locals out of jobs. In this context, I urge the government to seriously consider steps to curtail the relatively easy entrance of foreign workers into the country. In line with this, the government should do away with outsourcing companies and allow those companies which are really in need of foreign workers to apply directly to the Home Ministry with justification. At the same time, the government should also set up a permanent Wage Council which can advise employers and the different sectors with respect to the appropriate wage levels.

Mr Speaker,
The government’s continued commitment to alleviate poverty, especially in reducing the overall poverty to 2.8 percent by the end of the Ninth Plan period in 2010 and to wipe out abject poverty should be applauded. The government should be commended for successfully reducing the incidence of overall poverty from 5.7 percent in 2004 to 3.6 percent in 2007.

Having said that, I feel that initiatives to address socio-economic inequalities should not take an ethnic approach. In this context, I urge the government to review its overall emphasis and address socio-economic inequalities where it really exists. Socio-economic inequalities transcend racial lines. The government should therefore reduce its emphasis on programmes based on ethnic groups and instead shift its emphasis on target groups – rural poor, pockets of urban poor - the majority of them being the Malays and other Bumiputera groups in Sabah and Sarawak.

In this respect, Mr Speaker, I disagree with three aspects of the Mid Term Review report.

First, creating new requirements for the non-financial assets such as ownership of commercial and residential buildings to evaluate ethnic participation. Commercial properties were developed decades ago as a result of economic needs. Take for example, Kuala Lumpur’s Federal Hotel, which was build during the time of Tengku Abdul Rahman in time for the celebration of the country’s independence. Emphasis on ethnic origin would be unfair to these past entrepreneurs and retard enterprise. Second, requiring Private Limited Companies, or PLCs, to disclose information on their human resource profile will be a step backwards for the country to be a global player. This will discourage the companies to employ the best talents, which is important to the companies concerned, if they want to compete with the best in the region and globally. Instead, these companies should be encouraged to attract the best manpower, regardless of race, if they are to become world-class companies. It should also be noted that these PLCs are also free to enlist in other bourses like the Stock Exchange of Singapore and the Hong Kong Stock Exchange. Stringent requirements may push them to seek alternative listing in these regional bourses. My third point, Mr Speaker, is the government’s move to review traditional instruments such as the Foreign Investment Committee Guidelines, public procurement procedures and the Industrial Coordination Act. In the context of globalization, any further tightening of government procedures will grossly retard economic enterprises and affect the country’s overall growth strategy. Instead of making guidelines more restrictive, the government should liberalize the economy to enable Malaysians of all ethnic groups to flourish and be more creative and innovative. In this spirit of encouraging and nurturing entrepreneurship amongst young Malaysians, the government’s provision to graduates with creative and innovative ideas to commercialize their ideas should not be limited only to Bumiputeras. The country should encourage all aspiring graduates to commercialize their ideas as in a global playing field, we want to benefit from the best ideas and creations of young Malaysians. At the end of the day, they will bring untold benefits to the nation. Mr Speaker,The government’s overall objectives as outlined by the ten main initiatives reflect the government’s noble and sincere moves to ensure the continued well being of the people at an economically challenging time. As the Prime Minister duly reminded us, the second phase of the Plan would be a more challenging one and we can all expect to see a new set of challenges. This will require the resolve and commitment of not only the government but the people to tackle. The government and the people cannot be different from their objectives – ie. to see the country’s continued resistance to new global and regional challenges and to ensure the country’s continued growth. Thus, the rakyat would like to see the government putting into action, what has been outlined in the Mid Term Review. The key word here is implementing effectively, this blueprint! At the end of the day, what the rakyat needs is for their bread and butter issues to be looked into. For the business sector, that they be allowed to flourish as entrepreneurs with the least bureaucratic restraints so that their spirit of entrepreneurship would not be curtailed and their enthusiasm dampened and that they can truly stand out tall among their regional and global counterparts. Young Malaysians should be encouraged to unleash their fullest potential, talents, creativity and innovations to make Malaysia proud in the eyes of the world. Thank you, Mr Speaker.
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