Centre for Research, Advisory and Technology chief executive officer Ng Yeen Seen (pic) said Malaysia will be sidelined by China from the Belt and Road Initiative.
She said the Opposition will cease all China-linked projects such as the East Coast Rail Link, Tun Razak Exchange and the Country Garden Forest City development.
Malaysia’s palm oil industry problems will then be compounded with a boycott by China, she said.
She said many will be expected to lose their jobs if China decides to use another route to bypass Port Klang.
The abolition of the Goods and Services Tax (GST) will also result in a huge loss in revenue for the Government, she said.
According to her, government employees will be expected to lose their jobs as Petronas is no longer a formidable force like it was in the 80s, 90s and in the first decade of 2000.
“The Government will have to find alternative sources,” she said in a statement yesterday.
She added that this will result in national debt rising as it did in the 80s and 90s as privatisation will see a significant increase to sell more assets to “friendly parties” via cheap loans guaranteed by the Government.
Furthermore, as the Opposition has vowed to abolish tolls, Ng said the Government will have to borrow money from the United States, for example, in its plans to buy back these assets.
Ng said this was because the Government no longer had the oil money it once had in the past, coupled with China and the Middle East not being as strong as they were due to falling oil prices.
Although the abolition of BR1M will result in the B40 group being encouraged to work in newly privatised companies, she said this will hamper the nation’s dreams of becoming a high-income nation.
“To be globally competitive, these privatised companies will have to keep costs low and our high-income nation dreams will be destroyed,” she said, adding that foreign workers will return to compete with locals.
She pointed out that this will result in Industry 4.0 modernisation not happening and the country falling behind nations such as Thailand, Vietnam and Indonesia by 2023.- The Star
Fruitful friendship: National carmaker Proton
was given a boost when Chinese automaker Zhejiang Geely Holding Group
came to its rescue last year.
https://youtu.be/7IUBipqzRaU
https://youtu.be/DDuDZu6WXD4
A graphic being circulated on social media has the Chinese flag planted all over a map of Peninsular Malaysia, suggesting that Red China has taken over our land. The political message is clear: the Najib Administration is hawking the country.
Framed against the backdrop of a heated general election, everything is fair game, with no sacred cows, but the anti-China campaign is detrimental to the country and people.
Besides reeking of racism, it will drive Chinese investors away from Malaysia if the country is perceived as being hostile.
The reality is that many other countries will roll the red carpet for China, inviting the eastern giant to pour money into their countries, but in an emotional elections campaign, rhetoric seems to have prevailed above rationale and logic.
It didn’t help that Tun Dr Mahathir Mohamad, in a recent interview with Reuters, warned that Chinese investors in Malaysia will face more scrutiny if he regained power in the upcoming election.
He reportedly said that Chinese investment was welcome if companies which set up operations in Malaysia employed locals and brought in capital and technology to the country, but “this wasn’t the case now.”
“Lots of people don’t like Chinese investments,” the former prime minister claims, saying “we are for Malaysians. We want to defend the rights of Malaysians. We don’t want to sell chunks of this country to foreign companies who will develop whole towns”.
Last week, Dr Mahathir said Malaysia will stop borrowing from China, adding he would review Chinese investments if his political coalition was put in charge.
He told the Associated Press that “in the case of projects, we may have to study whether we would continue, or slow down or negotiate the terms”.
However, China is Malaysia’s top source of foreign direct investment, contributing 7% of the total RM54.7bil it received last year. That’s not a revenue stream to dismiss flippantly.
Recently, the Chinese Ambassador to Malaysia, Bai Tian, gave a firm reassurance that the republic would import more Malaysian palm oil and palm-based products, stressing there would be no cap on its imports.
He said: “We will not set any limit”, and “there will be no ‘glass ceiling’ for the import of Malaysian palm oil and related products”.
In the first six months of 2017, the total export of palm oil and palm oil products to China grew 9.8% to RM8.52bil, up from RM7.76bil a year ago.
As for the export of rubber and its products to China, Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong revealed that China has overtaken the United States and the European Union to become the top export destination for Malaysia. The total export of rubber and related products to China in the first 11 months last year jumped by 76% year on year to RM7.45bil, compared to RM4.23bil in the same period in 2016.
These are real facts and figures. This is not fake news.
All these huge imports by China will directly benefit Felda settlers.
Surely we need to treat our No. 1 customer well, and not kick them in their derriere or allow ourselves to be viewed with fear and ridiculed in election rallies, which we seem to be adept at.
Palm oil is straining under the weight of huge challenges from unfriendly EU countries, which are dead against the industry.
In a move to lift oil seed prices and encourage domestic supply of soybean and grapeseed, even India has raised its import tax on crude and refined palm oil to its highest level in more than a decade.
As one news article reported, “over the last 30 years, China’s economic growth has been phenomenal. A country of 1.3 billion with the biggest number of poor people, has propelled more than 600 million into the middle class.
“She is adding 30 million (incidentally, Malaysia’s total population) to this number every year. Most respectable studies are predicting the Chinese economy will be bigger than the US’ before 2030. Bloomberg says this will happen in 2026.”
As commentator John Lo correctly wrote in Free Malaysia Today: “President Donald Trump’s inward-looking policy is hastening the decline of the US. The US and her allies have ruled the world and imposed their will on other countries in the name of democracy and promise of prosperity for a few hundred years.
“Very few countries have benefited, and many have suffered by adopting or submitting to the US’ will. China’s economic growth model has shown to be better than that of the West’s.
“The US’ presence in Malaysia has helped little to build up our economy. They have been pumping our oil for years but have not given us an oil industry. They have invested a lot more, I really mean a lot more, in Singapore’s oil industry.”
In June 2017, trade with China totalled RM22.75bil, up by 8.7% from RM20.92bil – and the cash registers will ring louder as China’s wealth increases.
Of course, then there’s Proton Holdings, which registered losses of up to RM1bil in 2017. No one dared touch the national car maker, which, to put it politely, was well past the ICU stage. Even a defibrillator was useless.
For decades, Malaysians had to pay so much for imported cars, having to put up with protectionist measures and the obligatory national pride. No one was prepared to tell Dr Mahathir that the business model wasn’t workable anymore.
Then, China stepped in. Chinese automaker Zhejiang Geely Holding Group came to the rescue and took up a 49% stake in Proton. Geely is also the owner of Volvo, Boyue and the London Taxi Company, which produces the city’s iconic cab.
After Proton was sold to Geely, Dr Mahathir said he was saddened, but in 2014, it was he who travelled to China to meet the manufacturer to seek a Proton partnership, a bid which ultimately fell through.
On the tourism front, Malaysia is expected to hit the four million mark for inbound tourists from China this year. This is a trickle from the Chinese point of view, but with a fast-expanding middle class, the figures will surely spike.
One report said that Chinese investments in Malaysia “have continued to be on an uptrend despite the stringent capital control introduced by the Chinese government last year, signalling China’s commitment to pursue long-term investments in Malaysia. Among the projects that have seen significant Chinese investments in recent years are the Forest City in Iskandar Malaysia (RM405bil), the East Coast Rail Link (RM55bil) and Melaka Gateway (RM29bil).
“While the outlook for China’s ODI (overseas direct investments) appears to have dimmed, Malaysia has become the fourth largest recipient of China’s ODI globally this year.
“In the latest China Going Global Investment Index 2017 report by the Economist Intelligence Unit, Malaysia has jumped to fourth position in 2017, compared with 20th in 2015.”
“The significant improvement is mainly a result of Malaysia’s important participation in BRI-related projects, apart from the welcoming attitude towards Chinese investment.”
The stakes are simply too high for politicians to turn China into a bogeyman and instil fear in the voters’ minds, particularly in the Malay heartland.
“I am willing to take a bet that should the Opposition take over the government, they will run to Beijing first for investment. The reason is simple, the US will not invest much here. Europe is down.
“Japan has been in the doldrums for more than 20 years. They need investments more than Malaysia does. It is not wise to run down China’s investment for the sake of political campaigning,” Lo wrote.
He added that “the proper way to address any issue on China’s investments is not to blame the Chinese. They have come because the Government has lobbied hard for China’s investments.
“If the Opposition has any reservations, they should direct their criticism at the Government and not implicate China. To say that China is giving kickbacks is in bad taste and shows insensitivity and crudeness.”
Another favourite China-bashing target concerns Johor’s Forest City project. Claims abound about the loss of sovereignty when, in fact, the properties were constructed on reclaimed land, and not on existing plots in the state. The sprawling property will be built on land that never existed prior.
The developer, Country Garden Holdings, isn’t a fly by night operation. Instead, it is China’s sixth most successful property developer in terms of sales, and has a market capitalisation of US$61.87bil (RM241bil). The owner, Yang Guoqiang, has family assets worth 45.5 billion yuan (RM28bil).
Another bit of nonsense implicating China is the claim that the Government had granted tax exemption to federal projects, such as the East Coast Rail Link (ECRL) built by the Chinese, a move designed to anger the Malays. But during Dr Mahathir’s time, under the Sales and Services Tax (SST) system in the 1980s, exemption was given to several mega projects, including the Kuala Lumpur International Airport (KLIA), Express Rail Link, Smart Tunnel, Bukit Jalil Stadium, as well as to independent power producers.
If GST relief was not offered to China Communications Construction (CCC) Sdn Bhd for the ECRL project, it would have cost a lot more, thus increasing the country’s debt and incurring huge losses.
But leading up to the elections, rhyme or reason get thrown out the window, and facts and figures take a back seat. For some people, in their anger, truths are brushed aside at the expense of damaging the goodwill extended by China.
Those who have dealt with China will tell you they value friendship. They remember their friends – and their foes, too.
Source: Wong Chun Wai
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.
Well-regarded: Kuok in his office in Hong Kong. Picture taken from ‘Robert Kuok: A Memoir’.
https://youtu.be/mP1ju6_e4Vw
https://youtu.be/aTHuoseXJuE
https://youtu.be/AWgNLydCuq8
https://youtu.be/8nGcqaCQbPk
DURING the two week-Chinese New Year celebrations, with the tossing of yee sang for better times ahead, the key topic of conversation among the Chinese revolved around the general election.
But the sudden eruption of high-level political attacks on Robert Kuok last weekend sent shockwaves through the community. Since then, the richest man in Malaysia has been the talk of the town.
The onslaught could not be taken lightly as Kuok is not just any ordinary businessman but someone of stature held in high esteem not only in Malaysia and China, but also by the global Chinese community.
It is a known fact that Kuok helped to lay the groundwork for the end of communist insurgency in Malaysia, played a role in easing racial tension after the May 13 racial riots and contributed funds to Umno and MCA during elections.
His generous donations have benefited the poor and rich.
Kuok has always stood tall among everyone.
Dubbed the “Sugar King of Asia”, Kuok has set up a huge international empire with businesses spanning from commodity trading to hotels, sugar and oil palm plantations, wheat flour milling, property development and entertainment.
In Malaysia, he retains control of Shangri-La Hotels and the wheat flour business after selling his sugar and property businesses.
Hence, the Chinese community here feels hurt to see their business icon being smeared based on hearsay. They see grave injustice done to this man whose loyalty and commitment to the country is being questioned.
However, due to suspicion that the whole episode could be a politically driven scheme ahead of GE14 for various reasons, Chinese community leaders only spoke up after Kuok defended himself.
While many are aware that Kuok’s recent memoir had irked some quarters due to his disdain for the New Economic Policy (1971-90), they are perplexed by the timing of this smear campaign.
Kuok’s political revelations in his book have also earned him brickbats from some people.
This round, the criticisms against the tycoon were based on three articles posted by blogger Raja Petra Kamaruddin on the online portal Malaysia Today.
The most startling allegation made by the controversial blogger, who has a record of stirring up racial hatred towards local Chinese in past writings, was that Kuok had donated hundreds of millions to the DAP in a bid to overthrow the Umno-led government.
Without verifying the content, Malay critics and senior Umno politicians told Kuok to be grateful to the Government as the tycoon had built his early sugar, rice and flour empire based on his good ties with Umno leaders.
The remarks by Tourism and Culture Minister Datuk Seri Nazri Aziz were particularly scathing, as crude and offensive words were used. In addition, he told Kuok to surrender his citizenship.
The critics might have misconstrued earlier statements by Datuk Seri Najib Tun Razak, who had said that some of the richest people, including Kuok, owed their success to opportunities created through government policies.
“If we look at the list of names of the richest people in Malaysia, such as Robert Kuok, who gave him the key to become the rice and sugar king? It was given to him by the ruling government,” said the Prime Minister at an event in Selangor on Feb 24.
“Yes, he is driven, hardworking, industrious and disciplined – but that is not enough. Everyone still needs the key to creating these opportunities,” he added.
Although DAP leaders promptly denied receiving money from Kuok, this failed to stop the tirade of aspersions cast against Kuok.
It was obvious that Kuok had to defend himself. He issued a statement last Monday, saying all allegations against him were “untrue, unjustified and amounted to libel”.
The 94-year-old Kuok, who moved his business headquarters from Kuala Lumpur to Hong Kong in 1975, denied funding The Malaysian Insight portal or opposition parties to overthrow the Government.
He also denied that he was anti-government, a racist or a Chinese chauvinist.
While Kuok’s hint of instituting libel suits might have some deterrent effect, the proposal by MCA president Datuk Seri Liow Tiong Lai to the Prime Minister to intervene in the matter could have shut the mouths of Umno leaders.
Liow tweeted: “I have conveyed the feelings of the Chinese community to the PM. We hope that the PM will intervene to put this issue to rest. Mr Kuok has contributed greatly towards the development of the nation.”
If the vicious attacks on Kuok were allowed to continue, the first casualty in GE14 could be MCA and Gerakan, and ultimately Barisan Nasional, as angry Chinese could be provoked to vote against the coalition in GE14.
And the unintended winner from this latest episode could be the opposition side.
The question now is: Faced with so many challenges in the coming polls, could Barisan afford to sow a new seed of discontent and allow it to germinate unchecked?
The Prime Minister’s Office issued a statement, saying Kuok’s success is “an inspiration” for other entrepreneurs.
Though this brief statement and its “cooling effect” came a bit late in the political sense, it was better than nothing.
In addition, a tribute to Kuok posted by Najib’s brother Datuk Seri Nazir Razak on Instagram is also a comfort to the Chinese.
“I may not agree with all his views but he (Kuok) is a patriot, the icon of Malaysian business and a first-class gentleman,” said Nazir, the chairman of CIMB Group Holdings Bhd last Wednesday.
However, the injustice done to Kuok on such a scale is unlikely to be forgotten soon, as this incident has also stirred up some debates.
Is there any hidden political agenda to vilify Kuok before GE14? Do successful businessmen owe their allegiance to ruling political parties? Is it morally wrong to change your political stand?
Dr Oh Ei Sun, former political secretary of Najib, offers some explanations to Sunday Star: “Robert Kuok has shown his contempt for the NEP in his book. This may be seen as questioning Malay supremacy and this attitude must be nipped in the bud.”
He adds that Kuok may not be forgiven for stating the obvious, which many Chinese have wanted to voice out but could not for fear of losing business opportunities.
In his memoir, Kuok stated that although the Chinese have played a significant role in the economic development of Malaysia and other South-East Asian nations, many did not receive just and fair treatment.
Sin Chew Daily, quoting unnamed Barisan sources, says the bashing of Kuok also carried a warning message to the business community to think twice before they contribute election funds to opposition parties.
“These attacks also sent a message to the Malay community that they must be united to support Umno, which is being ditched by others it has helped to prosper,” said the Sin Chew report last Thursday.
Although a life member of the MCA, businessman Tan Sri Lee Kim Yew believes people owe no loyalty to political parties.
He tells Sunday Star: “A businessman is expected to be loyal to his country, not to ruling parties. Politicians and political parties come and go.
“Whoever becomes the government has a duty to create a conducive environment for the people to prosper and live harmoniously. If politicians are not worthy of support, people are free to switch their political stand in a democracy.”
Apart from ordinary people, the business community is also watching developments linked to Kuok with concern.
“If the issue on Robert Kuok is not handled properly, there will be a negative impact on the sentiment of investors. We are all following these developments,” says a businessman at a CNY dinner.
Under remand: MACC officers escorting the Datuk Seri away after obtaining a six-day remand order from the magistrate's court in Putrajaya - Mohd Sahar Misni/The Star
GEORGE TOWN: The Penang state government is shocked at claims that RM22mil was paid to two individuals to cover up investigations into alleged corruption in Penang’s undersea tunnel project – and wants the developer consortium Zenith Construction Sdn Bhd (CZC) to come clean on the matter.
Chief Minister Lim Guan Eng said the state government was shocked by news that CZC allegedly paid RM19mil to an unnamed businessman and RM3mil to Baling MP Datuk Seri Abdul Azeez Abdul Rahim.
“This is something we had no knowledge of,” he said.
Lim was referring to the remand of a high-profile “Datuk Seri” for allegedly receiving RM19mil to close the corruption probe into the controversial RM6.34bil Penang undersea tunnel project.
An online news portal, quoting sources, has also reported that CZC has issued a demand letter on Feb 24 to Abdul Azeez.
The portal also reported that CZC was planning to sue Abdul Azeez and the businessman for allegedly failing to execute their tasks. - The Star
Pricey seizure: The luxury vehicles,
(clockwise from top left) a Toyota Vellfire, a Mercedes-Benz, a Land
Rover and a Hyundai Starex, seized from the Datuk Seri.
https://youtu.be/ooyXvqmxbvw GEORGE TOWN: Some 20 houses located on a slope in Hong Seng Estate in Mount Erskine were flooded due
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