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Showing posts with label Manifesto. Show all posts
Showing posts with label Manifesto. Show all posts

Thursday, August 17, 2023

Honouring manifesto pledges; ‘Shaping Penang into preferred investment destination’

 

An aerial view of the proposed site for the future LRT station which is beside the Sia Boey Urban Archaeological Park near Komtar.


AFTER the euphoric victory with a two-thirds majority in the 15th state elections, Penang Chief Minister Chow Kon Yeow, immediately got back to work.

Chow, who is in his second and final term as the state’s chief executive, has to deliver on promises made by the Pakatan Harapan-Barisan Nasional pact in the Penang Unity Manifesto 2023.

Several grandiose projects planned by the state government are expected to take off while a few will be completed before his term is up.

The following projects are some highlights of the Penang Unity Manifesto.


The Penang South Island Project will be scaled down to just one island (Silicon Island).

Silicon Island

The man-made island project, measuring 930ha and touted as the economic catalyst and new tourism attraction for Penang, is to house the Green Tech Park (GTP) and Heart of the Island (Hoti) business district.

The reclamation effort, in two phases off the southern coast of Penang island, will take between 10 and 15 years to complete.

The GTP will feature research and design facilities, digital technology infrastructure, ecommerce and business process outsourcing.

Hoti, on the other hand, has been planned as a waterfront commercial hub that will serve as the pulse of the island.

Silicon Island Development Sdn Bhd, which is 70% owned by SRS PD Sdn Bhd, has awarded the design, management and construction of the Phase 1 reclamation works of Island A to turnkey contractor SRS TC Sdn Bhd, a wholly-owned subsidiary of Gamuda.

Phase 1 preparatory works commenced on July 1 this year while physical works will only begin once the company secures Environmental Management Plan approval from the Department of Environment (DOE).

Upon completion, the project designed according to environmental, social and governance (ESG) principles, is expected to attract high-impact investments.


. Chow showing a map of Silicon Island during a press conference at Komtar in this file picture.

GBS By The Sea

With a net lettable floor space of about 300,000sq ft, the project in Bayan Lepas is meant to address the rising demand from Global Business Services (GBS) as well as technology and research and development (R&D) companies.

Developed by Penang Development Corporation (PDC), the project comprising a nine-storey office building and a six-storey multilevel carpark is a multi-million ringgit project.

Upon completion in 2024, AMD Global Services will be the major tenant and will occupy about 209,000sq ft for the expansion of its operations.

Chow was quoted by Buletin Mutiara as saying that the project would ensure Penang’s infrastructure could meet the long-term growth of industry players.

Medi-tech City

The project with a RM9.9bil gross development value in Batu Kawan is earmarked to be an integrated, sustainable and high technology medical city and business hub in Penang.

In January last year, Bernama reported that the project occupying a 93ha plot of land in Batu Kawan was slated for completion in 10 years.

Once ready, it will serve as a medical hub providing eco-tourism and global business services with facilities including hospital, medical campus, medical supply hub, corporate suites, rehabilitation centre, retirement village, hotel, wellness centre, sports centre, electrical and electronics sectors, logistics and distribution hub.

Titijaya Land Bhd and Penang Development Corp (PDC) signed a memorandum of understanding (MOU) to develop this project.

Penang Light Rail Transit

The Federal Government has committed to provide funding for the Penang Light Rail Transit (LRT) project which will be undertaken by Mass Rapid Transit Corp Sdn Bhd (MRT Corp).

It was announced that there will also be a major enhancement in the much anticipated project’s first phase.

Instead of just stretching from Bayan Lepas to Komtar, the LRT line will go all the way to Tanjung Bungah, covering a 29km distance and making 27 stations available.

Work packages are expected to be tendered by the year-end and the project is expected to be completed in five years.

Juru-Sungai Dua Elevated Highway

Under the Penang Transport Master Plan, it has been proposed that the Juru-Sungai Dua Elevated Highway project at the Juru Interchange on the mainland is to be upgraded to a “diverging diamond interchange”.

The upgrading project is important to address severe congestion along the North-South Expressway and at the signalised Jalan Kebun Nenas-Jalan Perusahaan T-junction.

Lane widening and synchronising traffic signal timing at the Jalan Kebun Nenas-Jalan Perusahaan T-junction have also been proposed.

Chow said the dedicated bypass from Juru to Sungai Dua toll project would be a long-term traffic dispersal plan.

He said the project should be modelled after the Ipoh Selatan-Jelapang through-traffic stretch, which separates the traffic between the expressway and the slip road to Ipoh city.

Chow was quoted by Buletin Mutiara as saying that the proposed project would be able to address traffic woes in major parts of Penang mainland.

He said traffic congestion in that area (Juru-Sungai Dua) had deeply impacted road users.

This component is still a proposal and subject to approval and changes.

Penang Hill Cable Car

Set to be another iconic tourist attraction, the cable car system will help the tourist-load balancing by complementing the 100-year-old funicular railway from Ayer Itam.

Its lower station will be built near Penang Botanic Gardens. Included are the construction of a public transport station and a multi-storey parking complex.

The system with 43 gondola cabins will have the capacity of 1,000 passengers per hour at a speed of 6m per second.

There will be 15 towers along the line and the journey from the lower to upper station will take 10 minutes.

In June this year, a concession agreement was signed between Penang Hill Corporation and Hartasuma Sdn Bhd, which will own the tourist attraction concession over the next 30 years.

The proposed investment of at least RM245mil by Hartasuma will also include beautification of surrounding areas of Penang Botanic Gardens.

The project is expected to be operational in three years.

Tanjung Bungah-Teluk Bahang Dual Carriageway

The project, popularly known as the North Coastal Paired Road (Package One), is one of the three new roads under the Penang Undersea Tunnel project.

Early reports indicated that the project will be a four-lane road from Teluk Bahang which will end in the L-shaped road bend known to locals as the Vale of Tempe – a two-lane road in Tanjung Bungah.

The North Coastal Paired Road will pass the Batu Ferringhi tourism belt which often experienced gridlock during the holidays.

According to the project’s environmental impact assessment (EIA), the travel time from Tanjung Bungah to Teluk Bahang using the existing road is between 20 and 23 minutes.

The proposed highway will reduce travel time to nine minutes with vehicles travelling at about 70km/h.

The existing federal road that motorists currently use is more than a century old. Sandwiched between private land and public beaches makes the possibility of upgrading and widening it nearly impossible.


The RM851mil (Package Two) bypass measuring 5.7km linking Ayer Itam to Tun Dr Lim Chong Eu Expressway is expected to be completed in 2025. — Filepic

Ayer Itam-Tun Dr Lim Chong Eu Expressway Bypass

The Ayer Itam-Tun Dr Lim Chong Eu Expressway Bypass (Package Two) is one of three road projects that are part of the Penang Undersea Tunnel project.

The 5.7km bypass linking Ayer Itam to Tun Dr Lim Chong Eu Expressway can reduce travel time and bring long-term benefits to Penang residents, especially some 300,000 folk living in Ayer Itam, Bandar Baru Ayer Itam and Paya Terubong.

The toll-free project will stretch 1.8km at ground level while some parts are elevated.

There are viaduct structures (65%), tunnels (20%) and grade sections (15%) on this road.

The entire project is slated for completion in 2025 and is currently 38% complete.

Sungai Bakap Bypass

The 1km bypass will link to Jalan Sungai Bakap from the North-South Expressway (southbound) on Penang mainland.

It is among the initiatives to tackle traffic woes on the mainland via the Seberang Prai City Council Strategic Plan 2023-2030.

Buletin Mutiara reported that the Public Works Department (JKR) had prepared the project’s estimated cost, adding that the department was in the process of coming up with paperwork to be submitted to the Penang government.

The procurement process of appointing a consultant will begin once the project paper is approved by the Penang government.

For now, there are still issues to be resolved with the Malaysian Highway Authority.

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‘Shaping Penang into preferred investment destination’

Based on the manifesto, p-hailing riders are to get personal accident insurance coverage. — KT GOH/The Star

WHILE some believe the “Penang Unity Manifesto 2023” will benefit Penangites, others feel more can be done for lower-income groups.

Property agent Sam Ooi, 43, said Silicon Island development would help boost employment opportunities and attract high-impact investments.

The Medi-tech City and GBS by The Sea projects would benefit the local construction industry, generate employment, and create economic spillover effects, he said.

“The unity manifesto will boost the state’s appeal as the preferred investment destination,” he said, adding that there should also be more affordable housing to help the locals,” he said.

He said Penangites could look forward to high-income jobs and their income would then correlate with their spending.

“With better income, they will be able to buy properties to settle down here.

“The market is slowly picking up post pandemic. Many are buying properties not as investments but to live in.

Maison Martell commemorates the Year Of the Rabbit with a spectacular new limited addition to the Zodiac Edition collection of the LOr De Jean Martell 1715 the Assemblage du Lapin Photos Handout


Ooi: Silicon Island, Medi-tech City and GBS by The Sea projects will be a boost to Penang.

“Younger folk tend to buy small units but with the incentives offered in the manifesto, they may be able to afford bigger units,” he added.

Sundry shop manager Mohd Iqbal Abdullah, 33, said more could be done for the B40 group.

“At a glance, only p-hailing and ehailing drivers, taxi and bus drivers will benefit from monetary incentives and personal accident insurance coverage.

“Such aid should be extended to people under the B40 category, or those earning below a certain amount.

“My basic salary is RM2,500. I am now managing with my wife’s help but we will become parents soon, so money will definitely be tighter.

“Perhaps the state can look into having incentives for new parents besides the one-off payment,” he said when met at an eatery in Tanjung Tokong.

Mohd Iqbal said he was interested in the B40 Affordable Housing scheme, which would be sold between RM100,000 and RM150,000, as well as the rent-to-own units.

“I would love to own a home. It will be nice to settle into a home with the baby coming.

“I hope I am eligible for a unit as it is hard to own a home in Penang,” he said.

S. Raakesh, 27, is disappointed as there are no incentives for youths who are in debt because of student loans like him.

“The incentives seem to cater to certain groups only, and are not for everyone,” said the software quality assurance engineer.

“While the affordable housing pledge is great, I hope all of us qualify and can apply for it.”

Business executive Chew Seak Wei, 42, said the LRT project would help ease traffic congestion.

“Hopefully, during the construction stage, the authorities will manage traffic efficiently to reduce congestion, pollution and noise,” he said.


Tan: Medi-tech City will create high-skilled jobs for Penangites.

Bank loan officer Zoey Tan, 40, said the Medi-tech City project would create high-skilled jobs for Penangites.

“This will help improve the household income and increase purchasing power.

“The project will also, in a way, halt brain drain,” she said.

On Aug 1, the Pakatan Harapan-Barisan Nasional pact launched its manifesto comprising 16 main themes, 15 highlights and 50 manifestos.

The 16 main themes cover the people’s welfare, socioeconomic well-being, essential infrastructure development, rural development balance, human capital development, women and youth employment, food supply security, traffic management initiatives, environmental resilience towards climate change and housing for all.

It also touches on boosting high-skilled employment, upholding the Islamic faith based on the Malaysia Madani principle, strengthening the tourism and service sector, promoting multicultural harmony, upholding democracy and protecting Penang’s rights.

Among the highlights are establishing a State Social Development Fund for the needy through collection of medical health fees from foreigners.

Haj pilgrims from the B40 group will also receive a one-off RM1,000 assistance while aid of RM600 per year will be provided to ehailing drivers besides personal accident insurance for p-hailing riders.

The manifesto also pledged to continue assistance of RM600 per year to taxi and school bus drivers.

For education, the manifesto pledged an RM60mil allocation by 2030.

The pledge also mentioned a target of building 220,000 affordable housing units, of which up to 100,000 units will be offered through the “B40 Affordable Housing” scheme priced at RM100,000 to RM150,000 as well as 22,000 rent-to-own units by 2030.

The manifesto also touched on introducing a Special Rental Housing Scheme for youths or single individuals, a one-off RM500 sum for newly-weds known as Golden Couple Programme, and free laptops for B40 students who receive offers to study at public institutions of higher learning.

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Related posts:



It’s time for Penang to reinvent itself; RM70bil to be raised from the 3 man-made islands to finance LRT, PIL infrastruture under PTMP


Monday, May 21, 2018

Putting in place a new Malaysian order

https://youtu.be/fCZj0DuDNUk

Robert Kuok attends CEP meeting

https://youtu.be/93Rm3baD_2g

THE winds of change have been sweeping through the country in the past fortnight at breathtaking speed.

First, the incredible election results that very few predicted correctly. Then the post-election drama until Tun Dr Mahathir Mohamed was sworn in for a historic second time as PM. Followed by many decisions and measures announced daily as Mahathir hit the ground running, or rather sprinting.

The liberation of Anwar Ibrahim “from prison to palace” and from palace to padang for the night rally last Wednesday completed the key milestones in the quick journey from the old discredited order to the new world being born.

Mahathir was not only the man of the hour, masterfully guiding the ship to the harbour, avoiding the last dangers, but also a man in a hurry, laying the foundations for recovering the economy, reforms to key institutions, and getting to the bottom of the 1MDB sacndal.

Quite a few have aptly quoted Shakespeare to describe what happened: “There is a tide in the affairs of men which when taken at the flood leads on to fortune.”

There is another saying, when a revolution has taken place but there is chaos afterwards and the future is uncertain: “The old world is dying but the new cannot be born.”

What is most remarkable about the first post-election days is not how quickly the old era is passing away but how rapidly the new order is being built.

The reconciliation of the two giants of Malaysian politics, Mahathir and Anwar, paved the way to this remarkable new chapter.

When they fell out two decades ago, their story was worthy of a Shakespearean tragedy. Destiny or will or both have provided them a second chance to get it right this time, and if they do, Malaysia itself will have the opportunity to have a bright future.

It will always be remembered that the sacrifices made by Anwar and his family through his three jail terms and the reformasi movement he generated brought the country to where it is.

Equally, history will record that Mahathir not only laid the foundation of the country’s recent economic development and progressive foreign policy in his long stint as PM but also that he returned to “save Malaysia” from the lowest depths the country had descended into.

If reformasi has been the war cry, implementing a true reform agenda is now the prerogative.

Mahathir has now embarked full scale on reform – Anwar says his role is to keep it on the right track.

Understandably, the PM’s first priority is the economy. The new government has been acting to ensure that as far as possible its new policies should not lead to confidence erosion by investors and fund managers.

Removing the GST, Pakatan Harapan’s main election promise, is the number one political prerogative. Concerns that this will lead to a RM40bil revenue shortfall are being countered by expectations of increased revenue from renewal of a sales tax, the hike in oil prices to the current US$80 (RM318) a barrel, and savings from a planned reduction of wastage in government expenditure. The GST removal on June 1 should also lead to price reductions, a boost to consumer spending and the economy as a whole, and thus generate extra state revenue.

The new government will have to deal with the explosive jump in government debt in recent years. In a mere six years between 2011 and 2017, government debt rose 51% from RM456bil to RM687bil, while government-guaranteed debt jumped 94% from RM117bil to RM227bil.

Added together, the federal and federal-guaranteed debt went from RM573bil to RM914bil. It might be more if the debts of other entities are included.

This massive jump in debt may partly explain how the previous government was able to splurge on many projects and on welfare schemes, in failed efforts to win over the public and in schemes that mainly benefited the powerful and their cronies.

The commercial viability and social value of many of the loan-fuelled expenses are questionable.

An audit should be done on sources and uses of the loans, and how to reduce the damage by cutting loss-making projects and improving the performance of those that can be saved.

Recent years also saw the opening up of financial sectors, leading to high foreign participation in government debt and in the stock market, as capital surged into emerging markets like Malaysia in search of higher yield.

There are benefits in good years, but the country also becomes more vulnerable when global trends turn negative, as is happening since higher interest rates in the United States are prompting capital to flow back.

Dealing with the boom-and-bust cycle in capital flows will be a challenge for the new government.

Beyond economics and institutional reforms, there are other pressing issues the new government should focus on.

One of them is the environment. There are crises developing, on water resources and supply, floods, damage to forests and watersheds, hillside collapse and erosion, deterioration of the coastal environment and of course climate change.

Environmental damage harms social life and the economy. Floods and water shortage affect production, and fish prices have shot up due to overfishing and sea pollution.

Priority must thus be put on revamping environment-related policies and on strengthening the Environment Ministry. They have been neglected for far too long.

-  By Martin Khor is executive director of the South Centre. The views expressed here are entirely his own.

Related:


'Dr M shouldn't be meeting the likes of the Chief Justice' - Nation


A beacon for peaceful change


EXCLUSIVE: PETALING JAYA: Nobody in the world, says investigative journalist Clare Rewcastle Brown, “not a single expert really”, thought there could be a change of government in Malaysia.

Related posts:

Dr Mahathir moves swiftly to inject confidence and stability into the market WHEN the results of the 14th general election were final..
  Mahathir to be sworn in as PM on May 10 https://youtu.be/zsOkQeJxojk After six decades in power, BN falls to ‘Malaysian tsuna...

Market impact: The reaction of investors following the past two GEs is an example of how investors value certainty and how Bursa will b...

Najib and Mahathir face off in fierce Malaysian election:   https://news.cgtn.com/news/ 3d3d414f33517a4d77457a6333566d 54/share.html ...

Putting in place a new Malaysian order

https://youtu.be/fCZj0DuDNUk

Robert Kuok attends CEP meeting

https://youtu.be/93Rm3baD_2g

THE winds of change have been sweeping through the country in the past fortnight at breathtaking speed.

First, the incredible election results that very few predicted correctly. Then the post-election drama until Tun Dr Mahathir Mohamed was sworn in for a historic second time as PM. Followed by many decisions and measures announced daily as Mahathir hit the ground running, or rather sprinting.

The liberation of Anwar Ibrahim “from prison to palace” and from palace to padang for the night rally last Wednesday completed the key milestones in the quick journey from the old discredited order to the new world being born.

Mahathir was not only the man of the hour, masterfully guiding the ship to the harbour, avoiding the last dangers, but also a man in a hurry, laying the foundations for recovering the economy, reforms to key institutions, and getting to the bottom of the 1MDB sacndal.

Quite a few have aptly quoted Shakespeare to describe what happened: “There is a tide in the affairs of men which when taken at the flood leads on to fortune.”

There is another saying, when a revolution has taken place but there is chaos afterwards and the future is uncertain: “The old world is dying but the new cannot be born.”

What is most remarkable about the first post-election days is not how quickly the old era is passing away but how rapidly the new order is being built.

The reconciliation of the two giants of Malaysian politics, Mahathir and Anwar, paved the way to this remarkable new chapter.

When they fell out two decades ago, their story was worthy of a Shakespearean tragedy. Destiny or will or both have provided them a second chance to get it right this time, and if they do, Malaysia itself will have the opportunity to have a bright future.

It will always be remembered that the sacrifices made by Anwar and his family through his three jail terms and the reformasi movement he generated brought the country to where it is.

Equally, history will record that Mahathir not only laid the foundation of the country’s recent economic development and progressive foreign policy in his long stint as PM but also that he returned to “save Malaysia” from the lowest depths the country had descended into.

If reformasi has been the war cry, implementing a true reform agenda is now the prerogative.

Mahathir has now embarked full scale on reform – Anwar says his role is to keep it on the right track.

Understandably, the PM’s first priority is the economy. The new government has been acting to ensure that as far as possible its new policies should not lead to confidence erosion by investors and fund managers.

Removing the GST, Pakatan Harapan’s main election promise, is the number one political prerogative. Concerns that this will lead to a RM40bil revenue shortfall are being countered by expectations of increased revenue from renewal of a sales tax, the hike in oil prices to the current US$80 (RM318) a barrel, and savings from a planned reduction of wastage in government expenditure. The GST removal on June 1 should also lead to price reductions, a boost to consumer spending and the economy as a whole, and thus generate extra state revenue.

The new government will have to deal with the explosive jump in government debt in recent years. In a mere six years between 2011 and 2017, government debt rose 51% from RM456bil to RM687bil, while government-guaranteed debt jumped 94% from RM117bil to RM227bil.

Added together, the federal and federal-guaranteed debt went from RM573bil to RM914bil. It might be more if the debts of other entities are included.

This massive jump in debt may partly explain how the previous government was able to splurge on many projects and on welfare schemes, in failed efforts to win over the public and in schemes that mainly benefited the powerful and their cronies.

The commercial viability and social value of many of the loan-fuelled expenses are questionable.

An audit should be done on sources and uses of the loans, and how to reduce the damage by cutting loss-making projects and improving the performance of those that can be saved.

Recent years also saw the opening up of financial sectors, leading to high foreign participation in government debt and in the stock market, as capital surged into emerging markets like Malaysia in search of higher yield.

There are benefits in good years, but the country also becomes more vulnerable when global trends turn negative, as is happening since higher interest rates in the United States are prompting capital to flow back.

Dealing with the boom-and-bust cycle in capital flows will be a challenge for the new government.

Beyond economics and institutional reforms, there are other pressing issues the new government should focus on.

One of them is the environment. There are crises developing, on water resources and supply, floods, damage to forests and watersheds, hillside collapse and erosion, deterioration of the coastal environment and of course climate change.

Environmental damage harms social life and the economy. Floods and water shortage affect production, and fish prices have shot up due to overfishing and sea pollution.

Priority must thus be put on revamping environment-related policies and on strengthening the Environment Ministry. They have been neglected for far too long.

-  By Martin Khor is executive director of the South Centre. The views expressed here are entirely his own.

Related:

'Dr M shouldn't be meeting the likes of the Chief Justice' - Nation



A beacon for peaceful change


EXCLUSIVE: PETALING JAYA: Nobody in the world, says investigative journalist Clare Rewcastle Brown, “not a single expert really”, thought there could be a change of government in Malaysia.

Related posts:

Dr Mahathir moves swiftly to inject confidence and stability into the market WHEN the results of the 14th general election were final..
  Mahathir to be sworn in as PM on May 10 https://youtu.be/zsOkQeJxojk After six decades in power, BN falls to ‘Malaysian tsuna...

Market impact: The reaction of investors following the past two GEs is an example of how investors value certainty and how Bursa will b...

Najib and Mahathir face off in fierce Malaysian election:   https://news.cgtn.com/news/ 3d3d414f33517a4d77457a6333566d 54/share.html ...

Saturday, May 12, 2018

Jobs ahead for Pakatan's first 100 days fiscal reform


Dr Mahathir moves swiftly to inject confidence and stability into the market

WHEN the results of the 14th general election were finally formalised early Thursday morning, showing that Pakatan Harapan had won and would form the new government, there was a sense of excitement among its voters over the reforms promised by the incoming administration.

At the same time, that wave of buoyancy was tinged with worries of uncertainty. Malaysia was taking a path not traversed and for financial markets, anxiety is something they have never digested well.

Prime Minister Tun Dr Mahathir Mohamad since then has moved swiftly to inject confidence and stability among investors and the population.

His swearing in as PM and the announcement of key ministries in the Cabinet will help in soothing nervy investors ahead of Monday when the stock market opens.

Strong track record: Dr Mahathir at the swearing in ceremony as the 7th Prime Minister. He expects the stock market to see its capitalisation increase over time. — Bernama
Strong track record: Dr Mahathir at the swearing in ceremony as the 7th Prime Minister. He expects the stock market to see its capitalisation increase over time. — Bernama
 
The early movements of the stock market will be closely watched and that is something Dr Mahathir too has quickly sought to assuage. He tried calming anxious investors by saying he expects the stock market to see its capitalisation increase over time. He also assured businesses and investors that Malaysia remains business-friendly and the economy is among his top priorities.

Hints of what businesses and investors can expect are laid out in Pakatan’s manifesto and its to-do list within the first 100 days. Central among the pledges is the confirmation that the unpopular goods and services tax (GST) will be cancelled and replaced with a sales and services tax (SST).

The other measures it intends to carry out in the initial period is to reduce the cost of living, stabilise the price of petrol and introduce targeted petrol subsidies, abolish unnecessary debts that have been imposed on Felda settlers, introduce EPF contributions for housewives, equalise the minimum wage nationally and start the processes to increase the minimum wage, postpone the repayment of the National Higher Education Fund Corp or PTPTN for all graduates whose salaries are below RM4,000 per month and abolish the blacklisting policy.

It also plans to set up a Royal Commissions of Inquiry into 1Malaysia Development Bhd, Felda, Mara and Tabung Haji and reform the governance of these bodies. A Special cabinet committee to properly enforce the Malaysia Agreement 1963 will be set up. There are plans to introduce the Skim Peduli Sihat with RM500 worth of funding for the B40 (low-income) group for basic treatment in registered private clinics, and initiate a comprehensive review of all mega-projects that have been awarded to foreign countries.

What impact the measures will have on government finances is another source of uncertainty but Socio-Economic Research Centre executive director Lee Heng Guie feels it’s too early to assess any impact. “We will have to wait and see if Pakatan will table a new budget. The current estimates are based on the old budget, but I believe the Pakatan budget will continue with fiscal consolidation,” he says.

Pakatan’s alternative budget projects for a smaller fiscal deficit of 2.04%.

AmBank Group Research chief economist Anthony Dass says there needs to be some clarification on the new government’s policy and strategy without risking the ratings.

“Removing the GST and introducing the SST and other subsidies will act positively on the economy, as they help to improve the disposable income of households, and thus, spending. This will help buffer any shortfalls from the GST. Besides prudent financial management as we have seen in Selangor and Penang, a more transparent public procurement system or tendering process will improve competition and lower margins for players and ease budget strains,” he says.

Improving disposable income: Central among the pledges is the confirmation that the unpopular GST will be cancelled and replaced with the SST.
Improving disposable income: Central among the pledges is the confirmation that the unpopular GST will be cancelled and replaced with the SST.
Fiscal implications

Among the to-do list for its first 100 days in office, it is the promise to repeal the GST that has rating agencies worried.

“We are closely following the developments around some campaign promises that could have a negative impact on market sentiment and trigger volatility in the financial markets. These dynamics will take time to unfold and a lot will depend on what the new Government unveils in the coming weeks and months,” says Moody’s Investors Service Financial Institutions Group vice-president Simon Chen in a statement.

“If investor sentiment worsens materially, we will see increasing risks of capital outflows and a further weakening of the ringgit, that could in turn dampen private-sector consumption and operating conditions for banks in Malaysia.”

He did, however, say that Malaysia has weathered challenging periods, in particular, during the 1MDB scandal.

Fitch Ratings in a statement says the May 9 results means a higher likelihood of fiscal and economic policy change.

 “The extent to which the new government’s agenda will shift major policy is uncertain, but the Pakatan victory and its policy platform indicate a much greater potential for change. In the meantime, Fitch will monitor the new Government’s policy agenda as it evolves,” it says.

It views policy slippage leading to deterioration in fiscal discipline and higher government debt or deficits as a negative rating sensitivity.

“Among the most notable proposals is the replacement of the GST – a value-added tax launched in 2015 – with the narrower SST that had preceded it. The GST has become a key source of government revenue, accounting for 18% of total revenue equivalent to just over 3% of gross domestic product (GDP) in 2017.

“By comparison, the SST accounted for only 8% of total revenue and 1.6% of the GDP in its last year, 2014. As such, absent offsetting measures, the replacement of the GST would result in a correspondingly higher deficit,” it says.

Lee: We will have to wait and see if Pakatan will table a new budget.
Lee: We will have to wait and see if Pakatan will table a new budget.

Fitch points to another significant proposal, which is to reinstate some of the fuel subsidies. It says that if fuel subsidies were to be reinstated, they could offset some potential budgetary gains from rising oil and commodity prices.

Maybank Investment Bank in a report says that the removal of the GST will mean a projected revenue loss of RM44bil based on the current budget estimates. It says that even if the GST is replaced by the SST, which brought in RM17bil in 2014, there could be a prospective loss of RM27bil in government revenue and that could lift the budget deficit by 1.9 percentage points.

The report, however, does point to Pakatan’s alternative budget released in October 2017, which says that abolishing the GST will stimulate the economy and raise other tax revenues by boosting consumer and business activities. It says tax revenues will rise from better economic growth, higher receipts of corporate income tax, real property gains tax and other sources of income.

Government expenditure is also expected to drop by cutting certain allocations such as for the Prime Minister’s Office that can help buffer the cost of the GST removal.

It says that operating expenditure could be improved by having open tenders and the rationalisation in non-critical spending from supplies and services, which accounts for 14.4% of operating expenditure, grants and transfers to state governments and statutory bodies (9%) and the others’ category (7.8%), which consists of grants to statutory funds, public corporations and international organisations as well as insurance claims and gratuities.

Higher oil prices, however, are a revenue source for the Pakatan government and can help mitigate the loss of income from the removal of the GST. Maybank’s analysis shows that for every US$10 rise in the crude oil price, government revenue will rise by between RM7bil and RM8bil. That increase will have to be balanced out by the Pakatan manifesto’s pledge to give higher royalties to Sabah and Sarawak, and petrol subsidies.

Growth direction

Fiscal consolidation will mean there will likely be an impact on economic growth, as government expenditure plays an important role in generating growth. Economists are, however, optimistic that consumption boost from lower prices from the removal of the GST will help buffer any shortfall from spending.

They feel that the policies that will be rolled out in the coming months will be positive for the market and economy.

“We reiterate our -2.8% budget deficit to GDP for 2018 with the GDP to grow around 5.5%, supported by domestic demand and exports on the back of a stronger global GDP,” says Dass.

“We foresee better management in the operating expenditure with a more transparent procurement system or tendering process and efficiency in development expenditure projects and targets.”

Maybank is keeping its 2018 growth target at 5.3%, pending details on Pakatan’s economic policies.

“We are neutral to positive on the consumer spending growth outlook, based on Budget 2018 and Pakatan’s GE14 manifesto on measures to address living costs and boost disposable income. The main issue on the growth outlook now is investment, as businesses adopt a ‘wait-and-see’ stance and amid potential government reviews of several China-linked infrastructure projects and investments,” it says.

The investment climate, though, will be crucial in generating higher economic growth for the new government.

Lee says investor-friendly policies are important and the next three to six months will be important after Cabinet positions are filled and their work starts.

“Dr Mahathir’s strong track record, added with Datuk Seri Anwar Ibrahim as the prime minister-in-waiting and the maturity of Malaysians as reflected in this GE, augur well for the country. These are positive signs on the business and consumer confidence,” says Dass.

“This will help the investment mood to improve and the pick-up in capital expenditure.”

By jagdev singh sidhu, The Star


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Jobs ahead for Pakatan's first 100 days fiscal reform


Dr Mahathir moves swiftly to inject confidence and stability into the market

WHEN the results of the 14th general election were finally formalised early Thursday morning, showing that Pakatan Harapan had won and would form the new government, there was a sense of excitement among its voters over the reforms promised by the incoming administration.

At the same time, that wave of buoyancy was tinged with worries of uncertainty. Malaysia was taking a path not traversed and for financial markets, anxiety is something they have never digested well.

Prime Minister Tun Dr Mahathir Mohamad since then has moved swiftly to inject confidence and stability among investors and the population.

His swearing in as PM and the announcement of key ministries in the Cabinet will help in soothing nervy investors ahead of Monday when the stock market opens.

Strong track record: Dr Mahathir at the swearing in ceremony as the 7th Prime Minister. He expects the stock market to see its capitalisation increase over time. — Bernama
Strong track record: Dr Mahathir at the swearing in ceremony as the 7th Prime Minister. He expects the stock market to see its capitalisation increase over time. — Bernama
 
The early movements of the stock market will be closely watched and that is something Dr Mahathir too has quickly sought to assuage. He tried calming anxious investors by saying he expects the stock market to see its capitalisation increase over time. He also assured businesses and investors that Malaysia remains business-friendly and the economy is among his top priorities.

Hints of what businesses and investors can expect are laid out in Pakatan’s manifesto and its to-do list within the first 100 days. Central among the pledges is the confirmation that the unpopular goods and services tax (GST) will be cancelled and replaced with a sales and services tax (SST).

The other measures it intends to carry out in the initial period is to reduce the cost of living, stabilise the price of petrol and introduce targeted petrol subsidies, abolish unnecessary debts that have been imposed on Felda settlers, introduce EPF contributions for housewives, equalise the minimum wage nationally and start the processes to increase the minimum wage, postpone the repayment of the National Higher Education Fund Corp or PTPTN for all graduates whose salaries are below RM4,000 per month and abolish the blacklisting policy.

It also plans to set up a Royal Commissions of Inquiry into 1Malaysia Development Bhd, Felda, Mara and Tabung Haji and reform the governance of these bodies. A Special cabinet committee to properly enforce the Malaysia Agreement 1963 will be set up. There are plans to introduce the Skim Peduli Sihat with RM500 worth of funding for the B40 (low-income) group for basic treatment in registered private clinics, and initiate a comprehensive review of all mega-projects that have been awarded to foreign countries.

What impact the measures will have on government finances is another source of uncertainty but Socio-Economic Research Centre executive director Lee Heng Guie feels it’s too early to assess any impact. “We will have to wait and see if Pakatan will table a new budget. The current estimates are based on the old budget, but I believe the Pakatan budget will continue with fiscal consolidation,” he says.

Pakatan’s alternative budget projects for a smaller fiscal deficit of 2.04%.

AmBank Group Research chief economist Anthony Dass says there needs to be some clarification on the new government’s policy and strategy without risking the ratings.

“Removing the GST and introducing the SST and other subsidies will act positively on the economy, as they help to improve the disposable income of households, and thus, spending. This will help buffer any shortfalls from the GST. Besides prudent financial management as we have seen in Selangor and Penang, a more transparent public procurement system or tendering process will improve competition and lower margins for players and ease budget strains,” he says.

Improving disposable income: Central among the pledges is the confirmation that the unpopular GST will be cancelled and replaced with the SST.
Improving disposable income: Central among the pledges is the confirmation that the unpopular GST will be cancelled and replaced with the SST.
Fiscal implications

Among the to-do list for its first 100 days in office, it is the promise to repeal the GST that has rating agencies worried.

“We are closely following the developments around some campaign promises that could have a negative impact on market sentiment and trigger volatility in the financial markets. These dynamics will take time to unfold and a lot will depend on what the new Government unveils in the coming weeks and months,” says Moody’s Investors Service Financial Institutions Group vice-president Simon Chen in a statement.

“If investor sentiment worsens materially, we will see increasing risks of capital outflows and a further weakening of the ringgit, that could in turn dampen private-sector consumption and operating conditions for banks in Malaysia.”

He did, however, say that Malaysia has weathered challenging periods, in particular, during the 1MDB scandal.

Fitch Ratings in a statement says the May 9 results means a higher likelihood of fiscal and economic policy change.

 “The extent to which the new government’s agenda will shift major policy is uncertain, but the Pakatan victory and its policy platform indicate a much greater potential for change. In the meantime, Fitch will monitor the new Government’s policy agenda as it evolves,” it says.

It views policy slippage leading to deterioration in fiscal discipline and higher government debt or deficits as a negative rating sensitivity.

“Among the most notable proposals is the replacement of the GST – a value-added tax launched in 2015 – with the narrower SST that had preceded it. The GST has become a key source of government revenue, accounting for 18% of total revenue equivalent to just over 3% of gross domestic product (GDP) in 2017.

“By comparison, the SST accounted for only 8% of total revenue and 1.6% of the GDP in its last year, 2014. As such, absent offsetting measures, the replacement of the GST would result in a correspondingly higher deficit,” it says.

Lee: We will have to wait and see if Pakatan will table a new budget.
Lee: We will have to wait and see if Pakatan will table a new budget.

Fitch points to another significant proposal, which is to reinstate some of the fuel subsidies. It says that if fuel subsidies were to be reinstated, they could offset some potential budgetary gains from rising oil and commodity prices.

Maybank Investment Bank in a report says that the removal of the GST will mean a projected revenue loss of RM44bil based on the current budget estimates. It says that even if the GST is replaced by the SST, which brought in RM17bil in 2014, there could be a prospective loss of RM27bil in government revenue and that could lift the budget deficit by 1.9 percentage points.

The report, however, does point to Pakatan’s alternative budget released in October 2017, which says that abolishing the GST will stimulate the economy and raise other tax revenues by boosting consumer and business activities. It says tax revenues will rise from better economic growth, higher receipts of corporate income tax, real property gains tax and other sources of income.

Government expenditure is also expected to drop by cutting certain allocations such as for the Prime Minister’s Office that can help buffer the cost of the GST removal.

It says that operating expenditure could be improved by having open tenders and the rationalisation in non-critical spending from supplies and services, which accounts for 14.4% of operating expenditure, grants and transfers to state governments and statutory bodies (9%) and the others’ category (7.8%), which consists of grants to statutory funds, public corporations and international organisations as well as insurance claims and gratuities.

Higher oil prices, however, are a revenue source for the Pakatan government and can help mitigate the loss of income from the removal of the GST. Maybank’s analysis shows that for every US$10 rise in the crude oil price, government revenue will rise by between RM7bil and RM8bil. That increase will have to be balanced out by the Pakatan manifesto’s pledge to give higher royalties to Sabah and Sarawak, and petrol subsidies.

Growth direction

Fiscal consolidation will mean there will likely be an impact on economic growth, as government expenditure plays an important role in generating growth. Economists are, however, optimistic that consumption boost from lower prices from the removal of the GST will help buffer any shortfall from spending.

They feel that the policies that will be rolled out in the coming months will be positive for the market and economy.

“We reiterate our -2.8% budget deficit to GDP for 2018 with the GDP to grow around 5.5%, supported by domestic demand and exports on the back of a stronger global GDP,” says Dass.

“We foresee better management in the operating expenditure with a more transparent procurement system or tendering process and efficiency in development expenditure projects and targets.”

Maybank is keeping its 2018 growth target at 5.3%, pending details on Pakatan’s economic policies.

“We are neutral to positive on the consumer spending growth outlook, based on Budget 2018 and Pakatan’s GE14 manifesto on measures to address living costs and boost disposable income. The main issue on the growth outlook now is investment, as businesses adopt a ‘wait-and-see’ stance and amid potential government reviews of several China-linked infrastructure projects and investments,” it says.

The investment climate, though, will be crucial in generating higher economic growth for the new government.

Lee says investor-friendly policies are important and the next three to six months will be important after Cabinet positions are filled and their work starts.

“Dr Mahathir’s strong track record, added with Datuk Seri Anwar Ibrahim as the prime minister-in-waiting and the maturity of Malaysians as reflected in this GE, augur well for the country. These are positive signs on the business and consumer confidence,” says Dass.

“This will help the investment mood to improve and the pick-up in capital expenditure.”

By jagdev singh sidhu, The Star


Related story:

Malaysia former PM Najib and his wife banned from leaving country


https://youtu.be/J0BD94ioDsQ


Analysts say fulfilling election pledges may raise fiscal deficit


In the spotlight: Many shed tears of joy when Dr Mahathir was sworn in as the seventh Prime Minister.

Old PM heralds hope for new corporate culture

MALAYSIA’S poor handling of public finances is a subject matter that has very often lit controversy. It is not only during the Datuk Seri Najib Tun Razak government but stretches back to the days of our new ‘old’ Prime Minister, Tun Dr Mahathir Mohamad.



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Tuesday, April 17, 2018

Penang Tunnel project to be scrapped, flood mitigation plans among BN manifesto

https://youtu.be/petsLFOPMKo

 

‘Tunnel project to be scrapped’


BUTTERWORTH: Six pledges and 60 initiatives – that’s what the Barisan Nasional will be armed with as it attempts to wrest Penang from the clasp of the Opposition.

In its “Save Penang” manifesto launched yesterday, the coalition listed resolving flooding, overcoming traffic congestion and halting hillside development as the top priorities.

State Barisan chairman Teng Chang Yeow said if it regained power in the state, the controversial undersea tunnel project to link the island to the mainland would be scrapped.

He said further land reclamation at Permatang Damar Laut and Gurney Drive would also be barred.

Teng also announced that areas 76m above sea-level would be declared permanent forest reserves to protect the hills.

On flooding, he said the Barisan would resolve the problem within three-and-a-half years, by installing water pumps and floodgates and implementing a Penang Flood Mitigation Plan.

Another priority was to build 65,000 affordable houses within five years, introduce rent-to-own housing scheme, set the price of a low-cost home to RM40,000 (including a free carpark) and between RM80,000 and RM120,000 for medium-cost units (including free carpark).

The other priorities were listed as economic development, people’s welfare, and tourism and heritage.

Among others, the Barisan pledged to remove toll charges for motorcycles, abolish the water surcharge, provide a special fund of RM2,000 to couples who tie the knot for the first time, provide school bus subsidy to eligible families, provide free parking at council roadsides and residential areas, and allocate RM15mil annually for national-type, religious and private Chinese schools.

The Barisan also pledged to abolish postage charges and other charges for bill payments, provide free water to hardcore poor, reintroduce traffic wardens in school areas, and not to increase water tariff for residential areas within five years.

Thousands of Barisan leaders and members who attended the launch cheered when Teng fired salvos at the DAP-led state government, claiming its leaders made 51 false promises over the last 10 years.

Also present were state Umno chairman Datuk Seri Zainal Abidin Osman, state MCA chairman Datuk Tan Teik Cheng, state MIC deputy chairman Datuk M. Nyanasegaran and leaders of Barisan-friendly parties.

Teng (middle) getting waves of support as he launches the Penang Barisan Nasional manifesto at The Light Hotel in Seberang Jaya, Penang. With him are Penang Umno liaison committee chairman Datuk Seri Zainal Abidin Osman (on Teng’s right) and Penang MCA chairman Datuk Tan Teik Cheng. — Photos: ZHAFARAN NASIB/The Star
Teng (middle) getting waves of support as he launches the Penang Barisan Nasional manifesto at The Light Hotel in Seberang Jaya, Penang. With him are Penang Umno liaison committee chairman Datuk Seri Zainal Abidin Osman (on Teng’s right) and Penang MCA chairman Datuk Tan Teik Cheng. — Photos: ZHAFARAN NASIB/The Star


Flood Mitigation plans among BN manifesto

BARISAN Nasional will get allocation from the Federal Government to alleviate flooding woes in Penang within three and a half years if it secures the mandate from the people.

Penang Barisan chairman Teng Chang Yeow, a former state exco member, said detailed infographics would be required to come up with an action plan as well as a drainage masterplan to resolve the problem.

“We have experience in formulating flood mitigation plans in the past.

“From there, we will take the matter up to the Federal Government to negotiate for the amount of funds needed.

“We also have an emergency manual outlining standard operating procedures for a state to manage when struck by floods, and this goes in tandem with the Federal Government’s guidelines to create a clear chain of command.

“We noticed that in recent years, places in Penang that had never been flooded suddenly experienced floods.

“This is due to poor planning, lack of drainage and failure to identify hotspots.

“The people have suffered because of poor coordination and help could not reach them in time,” he said at a press conference after unveiling Barisan’s manifesto at a hotel in Seberang Jaya.

Commenting on the pledge for 50% of Penang island city councillors and Seberang Prai municipal councillors to be appointed from independent bodies, he said the representatives could join the planning committee to give their ideas.

Teng said that although landowners had the right to plan projects, those staying next door could voice their views including objecting to the projects if they were affected.

“But today, planners are not planning.

“Instead, politicians are doing the planning,” he said.

Teng said planning should be left to planners with expertise while politicians should only make policies.

'Can fulfil promises'

Teng: Penang will receive more allocation if voted into power

 



DESPITE being an Opposition state, Penang has received RM2.08bil as allocation from the Federal Government between 2013 and 2017.

Penang Barisan Nasional chairman Teng Chang Yeow said the amount was the highest among the northern states.

He said Kedah received RM1.76bil followed by Perak (RM1.25bil) and Perlis (RM360mil) during the same period.

“We can fulfil all our promises in the manifesto. The state will receive more allocation if we win the state from Pakatan Harapan,” he told reporters after launching the Penang Barisan manifesto at a hotel in Seberang Jaya yesterday.

Asked why the monorail and LRT projects which were in the 2013 manifesto were missing from the present one, Teng said the people in the state had rejected both projects as Penang Barisan was not voted into power then.

“However, we are open to consultation with the people and those from the civil movements to revive such projects if we are voted into power in the upcoming general election,” he said.

On another matter, Teng said Penang never had it easy during the 22-year tenure of former Prime Minister Tun Dr Mahathir Mohamad.

“Penang was bypassed most of the time when it came to development projects.

 “It was difficult for then Chief Minister Tan Sri Dr Koh Tsu Koon to get allocation for projects in Penang as the funds would not come.

 “Dr Mahathir, for reasons best known to himself, did not allocate sufficient funds for Penang and most of the time we were bypassed,” said Teng, who was once a state executive councillor.
Click to view details

- By K. Suthakar, Lo Tern Chern, and R. Sekaran, The Star


Related News

 

Aye to Barisan’s manifesto

Barisan Nasional Youth volunteers posing for a group photo at the recent Penang Barisan Nasional manifesto launching ceremony at The Light Hotel in Seberang Jaya, Penang. — Photos: ZHAFARAN NASIB/The Star
Barisan Nasional Youth volunteers posing for a group photo at the recent Penang Barisan Nasional manifesto launching ceremony at The Light Hotel in Seberang Jaya, Penang. — Photos: ZHAFARAN NASIB/The Star

   

Image result for A titanic battle for 'diamond' of PerakImage result for A titanic battle for 'diamond' of Perak A titanic battle for 'diamond' of Perak - Nation

 

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