US Presidential elections are reliable occasions for political futurology. This year’s presidential electioneering has yielded a prediction that Democrats and Republicans agree on and which European liberals anticipate – Bush will soon be gone and change is the order of the day. Change will of course occur on personnel, style and personality. The theme of this election will continue to be change. The theme of the next US administration, however, is likely to be continuity. So as was reported by Guardian News Services.
Whether Obama or McCain, whatever promises the made during presidential electioneering; as president of the United States of America will have to be highly dependable on and succumbs to various classified reports, findings, data collections, dossiers as compiled and prepared by various departments within the administrative set-ups. First and foremost, the President could not just quash reports and findings concluded by agencies such as CIA, FBI, Military Intelligence, Department of Homeland Security and a hosts of other similar agencies.
Likewise, in the area of international trade and WTO, the Department of Commerce and The US Treasury plus a few other departments and agencies play a vital role in advising the US Presidents. And then, there are hosts of “political and economic lobbyists” that for so long has featured prominently in the US administration.
To put it in simple term, Obama or McCain as US President shall be subjected to the “whims and fancies” of these so-called advisors, Presidential or otherwise. They are the one who dictate the President in making policies and decisions crucial to the existence and sovereignty of the United States. So, do not expect a major shift in policy in whatever area of interests. Obama or McCain is just next in line in the US Presidency. Nothing more than that; unless either of them are willing to do a “Lincoln” or a “Kennedy”.
Tuesday, June 24, 2008
OIL FUTURES SPECULATORS
US and British oil futures regulators are now working towards a deal to impose first-ever position limits on West Texas Intermediate contracts on the ICE Futures Europe exchange in a bid to control what they see as excessive speculation in oil markets and to make it harder for speculative traders to skirt regulations through “dark markets” where oversight is lax. In a highly unusual move, the US Commodity Futures Trading Commission and the British Financial Services Authority that they have an ongoing nationwide investigation into crude oil markets since December 2007.
It is a clear indication that global soaring oil prices are the works of unscrupulous speculators. These sets of people do not care if world population dies of hunger on the streets so long as they are able to satisfy their very own needs. I would speculate that the oil crisis nowadays is about similar to the South East Asian financial crash sometime in 1997-98. Until today, not a single government in the world including the US, British and European Union governments are able to do anything about the soaring oil prices; what more of the third world countries. Shall we just suffer in silence and succumb to these “few” invisible hands manipulating the whole world????
It is a clear indication that global soaring oil prices are the works of unscrupulous speculators. These sets of people do not care if world population dies of hunger on the streets so long as they are able to satisfy their very own needs. I would speculate that the oil crisis nowadays is about similar to the South East Asian financial crash sometime in 1997-98. Until today, not a single government in the world including the US, British and European Union governments are able to do anything about the soaring oil prices; what more of the third world countries. Shall we just suffer in silence and succumb to these “few” invisible hands manipulating the whole world????
ST MICHAEL’S INSTITUTION, IPOH
My “extraordinary” alma mater. Fond memories of those years. I was there for about 13 wondrous years with the first 6 years at St Michael’s Primary II. Hello to all Michaelians out there!!!! All thru’ our college ……………………………….
But what I’m about to pen here may not be acceptable to most Michaelians, if not all. SMI is situated right in the middle of Ipoh City fronting the infamous Ipoh Padang. SMI comprises of three, yes 3 schools; namely St. Michael’s Primary I, St. Michael’s Primary II and St Michael’s Secondary – 2 primary schools and 1 secondary school in a cramped compound!
And, all this while since a few decades ago, Jalan SP Seenivasagam, the short main street sandwiched between SMI and the Ipoh Padang is always congested especially during peak hours – cars belonging to parents and school busses double parking on both sides along the road. The completion of a new road along the Kinta River behind the SMI Primaries has helped to reduce traffic congestion along SP but congestion it still is not only along Sp but the new road at the back.
Let’s retain the SMI Secondary as it is – the historical main building that used to be the headquarters of the Japanese Imperial Army during WWII and its additional wings.
Let’s move out Primary I and Primary II to a more conducive area somewhere out of the city centre. Primary I may be somewhere in between Ipoh Garden and Bercham whilst Primary II may be relocated to Meru New Towmship or even to Pasir Puteh/Pengkalan. The Ministry of Education and perhaps the Perak Educaton Department may assist in the relocation of the 2 Primaries.
Space currently occupied by the 2 primaries may be use to improve educational facilities for the Secondary towards making SMI the excellent institution of learning not only in Ipoh but also in Malaysia.
Thus, solving traffic congestions !!!! I’m pretty sure this move will make the traffic police, MBI’s traffic wardens and the State Government (sic) happy! What say you, Michaelians???
But what I’m about to pen here may not be acceptable to most Michaelians, if not all. SMI is situated right in the middle of Ipoh City fronting the infamous Ipoh Padang. SMI comprises of three, yes 3 schools; namely St. Michael’s Primary I, St. Michael’s Primary II and St Michael’s Secondary – 2 primary schools and 1 secondary school in a cramped compound!
And, all this while since a few decades ago, Jalan SP Seenivasagam, the short main street sandwiched between SMI and the Ipoh Padang is always congested especially during peak hours – cars belonging to parents and school busses double parking on both sides along the road. The completion of a new road along the Kinta River behind the SMI Primaries has helped to reduce traffic congestion along SP but congestion it still is not only along Sp but the new road at the back.
Let’s retain the SMI Secondary as it is – the historical main building that used to be the headquarters of the Japanese Imperial Army during WWII and its additional wings.
Let’s move out Primary I and Primary II to a more conducive area somewhere out of the city centre. Primary I may be somewhere in between Ipoh Garden and Bercham whilst Primary II may be relocated to Meru New Towmship or even to Pasir Puteh/Pengkalan. The Ministry of Education and perhaps the Perak Educaton Department may assist in the relocation of the 2 Primaries.
Space currently occupied by the 2 primaries may be use to improve educational facilities for the Secondary towards making SMI the excellent institution of learning not only in Ipoh but also in Malaysia.
Thus, solving traffic congestions !!!! I’m pretty sure this move will make the traffic police, MBI’s traffic wardens and the State Government (sic) happy! What say you, Michaelians???
OF COLONIAL MINDSET
The Star (Fintan Ng - StarBiz 14, June) A really interesting article featured. It reported that the editor of China Economic Quarterly, Joe Studwell has said that Malaysia and other South-East Asian nations had fundamentally failed to escape from the shackles of colonialism because their political and economic elites continued to work together in a relationship that did not engender entrepreneurship and innovation.
Excerpts of Joe Studwell’s in full (with blessing from The Star, I hope) – “In these countries, the post-independent period saw a shift in the ties between indigenous political elites to their non-indigenous largely Chinese economic elites from largely European economic elites before. Indigenous elites such, as Suharto, Ferdinand Marcos and Mahathir Mohamad, have also perpetrated the Victorian belief that their non-Chinese citizens do nor possess the experience or entrepreneurial spirit to run successful businesses. Studwell also said that this had led to a lower growth trajectory compared with Japan, South Korea and Taiwan. In South-East Asia, economic elites are distributed economic rents in which the conditionality is not there, such as how these rents can contribute to the meaningful development of a country’s economy via export or the creation of global companies. Japan South Korea and Taiwan, in which there were also family-run business, had done much better than South-East Asia’s economies in terms of gross domestic product per capita due to their much clearer industrial policies and emphasis on export-oriented industries. In instances where preferences or subsidies have been given, it was with conditions attached, such as building up industries that are export-oriented or technologically innovative. Japan and South Korea had many companies whose names and products were well-known the world over, which was not the case in South-East Asia. The future for South-East Asia was bleak due to the entrenched interests and the way it had become an obstacle to the future growth of the region. South-East Asia may just wallow in the lower to medium –income bracket going forward due to this essentially political failure.”
My concern is more towards the Malaysian “political elites” – both the political masters as well as the bureaucrats (the public servants). Forget about the political masters, they come and go every 5 years, some are able to retain their seats for years to come some do not. My definition of public servants – government officials of every levels providing government services to the general public like you and me. Some, if not most, the so-called public “servants” that we face daily to obtain services act as if they are our masters; acting to their own whims and fancies. Even the “budak pejabat” to a certain extent acted like lords and masters. These can be seen daily especially at Land Offices and certain other government offices throughout the country. Of course, over the years we have seen changes for the better in some of these departments providing counter services; but alas ……………………….
I fully agree with Studwell, not so much on the macro-economic aspects as he had pointed above, but more on the mindset of most of our “public servants” and “political elites” that my colleagues and I have encountered over the years. They not only have failed to escape from shackles of colonialism, worst still they are acting as if they are the colonial masters of the general public. And we have just celebrated our nation’s 50th independence. How pathetic it is. Sigh !!!
Studwell’s book, Asian Godfathers : Money and Power in Hong Kong & South-East Asia should be a good read not only to Malaysian CEO’s at large but more so to Malaysian public servants alike. His book covers the often-complex world and relationships of tycoons with the political elites of Indonesia, Malaysia the Philippines, Singapore, Thailand and Hong Kong.
Excerpts of Joe Studwell’s in full (with blessing from The Star, I hope) – “In these countries, the post-independent period saw a shift in the ties between indigenous political elites to their non-indigenous largely Chinese economic elites from largely European economic elites before. Indigenous elites such, as Suharto, Ferdinand Marcos and Mahathir Mohamad, have also perpetrated the Victorian belief that their non-Chinese citizens do nor possess the experience or entrepreneurial spirit to run successful businesses. Studwell also said that this had led to a lower growth trajectory compared with Japan, South Korea and Taiwan. In South-East Asia, economic elites are distributed economic rents in which the conditionality is not there, such as how these rents can contribute to the meaningful development of a country’s economy via export or the creation of global companies. Japan South Korea and Taiwan, in which there were also family-run business, had done much better than South-East Asia’s economies in terms of gross domestic product per capita due to their much clearer industrial policies and emphasis on export-oriented industries. In instances where preferences or subsidies have been given, it was with conditions attached, such as building up industries that are export-oriented or technologically innovative. Japan and South Korea had many companies whose names and products were well-known the world over, which was not the case in South-East Asia. The future for South-East Asia was bleak due to the entrenched interests and the way it had become an obstacle to the future growth of the region. South-East Asia may just wallow in the lower to medium –income bracket going forward due to this essentially political failure.”
My concern is more towards the Malaysian “political elites” – both the political masters as well as the bureaucrats (the public servants). Forget about the political masters, they come and go every 5 years, some are able to retain their seats for years to come some do not. My definition of public servants – government officials of every levels providing government services to the general public like you and me. Some, if not most, the so-called public “servants” that we face daily to obtain services act as if they are our masters; acting to their own whims and fancies. Even the “budak pejabat” to a certain extent acted like lords and masters. These can be seen daily especially at Land Offices and certain other government offices throughout the country. Of course, over the years we have seen changes for the better in some of these departments providing counter services; but alas ……………………….
I fully agree with Studwell, not so much on the macro-economic aspects as he had pointed above, but more on the mindset of most of our “public servants” and “political elites” that my colleagues and I have encountered over the years. They not only have failed to escape from shackles of colonialism, worst still they are acting as if they are the colonial masters of the general public. And we have just celebrated our nation’s 50th independence. How pathetic it is. Sigh !!!
Studwell’s book, Asian Godfathers : Money and Power in Hong Kong & South-East Asia should be a good read not only to Malaysian CEO’s at large but more so to Malaysian public servants alike. His book covers the often-complex world and relationships of tycoons with the political elites of Indonesia, Malaysia the Philippines, Singapore, Thailand and Hong Kong.
REDUCE OR ABOLISH CORPORATE TAX ???
InvestPenang, the investment promotion arm of the Penang State Government recently urged the Federal Government to reduce or even abolish corporate tax to help industrial sector cope up with the effects from rising fuel prices and the impending hike in power tariffs.
I have this to say – in trying times like nowadays the Government is still in need to earn a living for its people. Nothing is free anymore in this wicked world. Most of these industries either have be been enjoying tax incentives such as Pioneer Status or Investment Tax Allowance which gave them quite ample deductions on real tax; and to a certain extent are also given various types of tax exemptions as provided under the Income Tax Act and/or the Promotion of Investment Act. These tax benefits and tax exemptions accorded are more than suffice. Just allow the Federal Government to collect as much of what’s left after these exemptions and deductions from such industries.
For existing industries, whether foreign-, joint-venture or locally-owned, I would urge them to institute programmes that would improve overall productivity. I would also urge those employed by this sector to also improve their productivity. Productivity entails to a certain extent saving of production and overhead costs and hence improve profitability.
The hiring of cheap foreign labor is indeed a blessing in disguise for industrial concerns. On the one hand, labor costs have been greatly reduced as compared to hiring locals. On the other, these foreign labor were given work permits for a certain limited years. Once their work permits expired, new batch of foreign workers come in with lower start-up pay. Not to mention cost savings to those hiring illegal foreign labor. The cycle never stops.
For new industries – I would say that development taken place in Malaysia during the last few decades, especially in the manufacturing sector, is tremendous indeed. We can now afford to select and choose types of industries that we want. We can now forego labor-intensive industries; even allow existing labor-intensive industries to move out to Vietnam, China or the like. The latest Industrial Master Plan has spoken on this matter.
State Governments’ investment promotion arms should realign their promotional targets to more sophisticated and technologically innovative industrial concerns that are able to better feed our more educated population rather than relying on “imported” manual labor.
MIDA has always done its best since its incorporation. Hat’s off to MIDA, ex-DGs Dato’ Sada, Dato’ Aishah, Datuk Karu and to the recently appointed DG Datuk Jalilah.
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