Get rid of rent-seeking parasites

RENT-SEEKING has been turned into an inimitable art by some individuals. From small cleaning contracts to million-ringgit security deals, rent-seekers have firmly established themselves as players with no one having the guts to challenge their so-called status. If public-listed companies and multi-national corporations accept and respect their existence, who are we, the Ordinary Joes, to question or even stand up to their domination? 

 

Ask the beer and tobacco industries, which incidentally collectively pay about RM5 billion in taxes and excise duties. The rent-seekers knocked on their doors and got away and still are getting away, no thanks to godfathers. For every packet of cigarette or bottle of beer sold, the respective industries are paying a few sen each for security markings – which runs into millions annually – purportedly to prevent illicit, counterfeit and duty-free products from reaching the market. Their protests over such rent-seeking exercises fell on deaf ears. Even a high-powered delegation of the industries’ umbrella bodies was treated with contempt with no room for discussion.

Despite these security markings, the figures on smuggled cigarettes and beer have been on an upward trend.

Then there are the smaller ones who collect little, 3-4%, of the total value of equipment supplied to the government.

No one objects or disapproves of any effort to correct the imbalance and the affirmative policies to help certain classes of people. But when they want to shake legs and become millionaires, there’s bound to be concern and discomfort in the way business is done. Privately, investors have expressed their views on rent-seekers and the approaches to make "easy money" to the authorities. Talk to anyone in the business community who has dealings with the government and he or she will have plenty to say about "budgeting" for rent-seekers, agents and Mr Fixits. They can tell explicit tales of how their product which was sold at X price was finally sold to the government at X+10. They will also tell you of arranging junkets disguised as familiarisation tours to their overseas headquarters for rent-seekers and agents. Even a proposal to ban "surat sokong" from elected representatives has brought about strong objections – an indication of the requisites to doing business in this country and the power of the rent-seekers.

Therefore, the prime minister’s announcement yesterday that rent-seeking will be an activity of the past, must be welcomed by all and sundry who want a level playing field. In launching the New Economic Model (NEM), he said: "Affirmative action programmes and institutions will continue (in the NEM) but, in line with views of the main stakeholders, will be revamped to remove the rent-seeking and market-distorting features which have blemished the effectiveness of the programme."

While no one has exact figures on how much leakage there is in government spending, The Edge quoted an economist with Morgan Stanley as saying in 2004, that over the past two decades, Malaysia had lost some RM330 billion in the form of corruption. Khairy Jamaluddin, when vying for the Umno Youth leadership last year, was reported to have said that 10% of government spending was wasted through leakage. However, the weekly said that private sector chief executives will claim that government spending, especially on construction projects and procurement can be inflated by as much as 50%.

But more telling is the prime minister’s announcement of the setting up of an "Equal Opportunities Commission" to ensure fairness and address undue discrimination when "occasional abuses by dominant groups are encountered". We will soon learn of the composition of the commission and its terms of reference.

While most right-thinking Malaysians must congratulate the prime minister for his forward-thinking and rational policies for the betterment of the country and its citizens, there’s some worry too. Will those who have benefited from the system be able to let go of something that they had been enjoying all these years? Can they give up their chauffeur-driven cars and the golf club memberships? Will their mindsets change and will they accept the fact that they will have to work for their money?

The prime minister noted that excessive focus on ethnicity based distribution of resources has contributed to growing separateness and dissension. He needs our support to bring about changes to a system which has evolved along patronism. His new affirmative policies bode well for all Malaysians. Hopefully, with the implementation of the NEM in totality, it will bring about a new dawn for this blessed country.

R. Nadeswaran has had his fair share of run-ins with rent-seekers and wannabes who think it is their birth right to impose a surcharge on anything that is paid for by the government. He can be reached at: citizen-nades@thesundaily.com

Source

http://www.sun2surf.com/article.cfm?id=44955 

Tourism Ministry aims to up domestic tourism revenue

JOHOR BARU: The Tourism ministry aims to generate more than RM40.6bil worth of revenue from domestic tourism traffic this year through efforts such as the 1Malaysia Travel Fair and travel mart, says director-general Datuk Mirza Mohammad Taiyab.

He said that about RM40bil was generated through domestic tourism in 2008 while, last year, the sector only generated about RM24.8bil.

"Last year there was a significant dip in domestic tourism revenue due to the economic downturn and the people's wait-and-see approach.

"We aim to bounce back this year through multiple programmes as well as creating more tourism products," he told newsmen after launching the Travel Mart programme here Friday.

Mirza said that the ministry was confident the target revenue could be achieved through cooperation from various parties, especially the tour guides and tour operators.

"Malaysians who wish to travel locally should acquire the services of tour operators or agents.

"Such operators can get better rates at hotels or resorts as well as provide proper tours," he said.

He added that boosting the domestic tourism could also deter locals from going abroad for vacations.

"We are indirectly controlling the outbound tourism and thus generating more income for the country," he said.

Mirza also urged tour agents to be more innovative in attracting tourists online as there was a growing feeling that online bookings provided by airlines as well as hotels could diminish their roles.

"People are bookings their hotels or airline tickets directly online without going through such agents.

"Thus, tour agents must be more creative in attracting tourists to use their services through ways such as offering interesting rates and coming up with more tourism products," he said.

Mirza cited an example where a tourist agent could organise a barbeque in a jungle near a resort compared to the mundane method holding it near a hotel's poolside.

On the travel mart, Mirza hoped that small and medium enterprises (SMEs) could benefit from such efforts as it was in line with ministry's goal of boosting the domestic tourism market.

"Part of the travel mart is producing the 'Cuti-Cuti 1Malaysia' tourist package brochures as well as other domestic products.

"We want the SMEs to take advantage of such wonderful opportunity by generating their own products such as handicrafts and foodstuff," he said. 

Source

http://thestar.com.my/news/story.asp?file=/2010/3/26/nation/20100326130648&sec=nation 

Najib urges bosses to give fair wages to locals

CYBERJAYA: Employers have been told to provide reasonable wages as incentives for locals to take up jobs.

Prime Minister Datuk Seri Najib Razak said many locals had reported that they had problems with poor salary schemes.

"This is one thing that I have to stress on... we have to be fair to locals in the job market.

"If wages remain low, in the end, the jobs won't be taken up by locals... then employers will start asking the government to approve their request for foreign workers."

Najib added when that happened, it would cause salaries for locals to remain at a low rate.

He was speaking at a video conference with Johor Menteri Besar Datuk Abdul Ghani Othman, after simultaneously launching 12 JobsMalaysia Centres (JCM) nationwide, here, yesterday.

JobsMalaysia is an agency under the Human Resources Ministry.

Also present were Human Resources Minister Datuk Dr S. Subramaniam and Public Service Department director-general Tan Sri Ismail Adam.

Responding to Ghani's briefing on job opportunities in Iskandar Malaysia, Najib expressed hope that the majority of jobs there would be taken up by Malaysians.

"As a growth area with great potential, especially with the projects that had been lined up, I hope Iskandar Malaysia becomes exemplary, not only in terms of investments that come in, but also where the welfare of workers -- especially amongst Malaysians, are concerned."

Earlier in his speech, Najib said since its set-up in January 2009, 387,210 job seekers had signed up with JCM.

Source

http://www.nst.com.my/Current_News/NST/articles/2wge/Article/index_html

Pekerja kita tidak berdaya tahan - Mukhriz

PUTRAJAYA 25 Mac - Daya tahan pekerja tempatan tidak setanding pekerja asing dari negara jiran, kata Timbalan Menteri Perdagangan Antarabangsa dan Industri, Datuk Mukhriz Tun Mahathir hari ini.

"Ia merupakan satu rungutan dari wakil industri dan ia perkara yang merunsingkan kita.

"Ia agak fundamental dan perlu ditangani untuk mengelakkan kita terus bergantungan kepada pekerja asing," katanya kepada media selepas menghadiri Program Outreach Kementeriannya Bersama Institusi Pengajian Tinggi Malaysia di sini.

Katanya, terdapat sebuah kilang yang telah melatih hampir 1,200 pekerja tempatan selama dua minggu tetapi selepas diterima bekerja hampir 1,000 orang tidak hadir.

"Ini merugikan pihak industri selepas memberikan latihan kepada mereka. Gaji telah ditimbangkan tetapi itu juga tidak memadai untuk mereka kekal bekerja," katanya.

Beliau turut melahirkan kegusaran di mana letaknya persepsi cara kerja masyarakat dunia terhadap rakyat Malaysia berbanding rakyat Jepun, Taiwan, dan Korea Selatan yang terkenal dengan ketekunan mereka.

"Malah kini rakyat Vietnam dan Bangladesh mula terkenal dengan persepsi yang baik," katanya lagi.

Ditanya sama ada ia akan menjejaskan pelaburan asing ke dalam negara, Mukhriz berkata, kerajaan mengambil masalah daya tahan pekerja tempatan ini sebagai satu cabaran.

"Banyak faktor yang perlu dilihat mengapa ia berlaku. Gaji mungkin tidak menjadi keutamaan. Mungkin mereka mahukan kebajikan mereka di jaga.

 

"Faktor mobiliti juga perlu dilihat di mana mereka mempunyai banyak pilihan. Perbezaan gaji RM50 pun memungkinkan mereka melompat ke tempat lain," katanya.

 

Sumber

http://www.utusan.com.my/utusan/info.asp?y=2010&dt=0326&pub=Utusan_Malaysia&sec=Ekonomi&pg=ek_01.htm

Tanaman Padi Dua Kali Setahun Akan Dilaksanakan Di Langkawi

LANGKAWI, 27 Mac (Bernama) -- Projek penanaman padi dua kali setahun akan dilaksanakan secara menyeluruh di Langkawi membabitkan kawasan seluas lebih 1,000 hektar, kata Timbalan Menteri Pertanian dan Industri Asas Tani, Datuk Mohd Johari Baharom.

Katanya untuk menjayakan rancangan itu, Jabatan Pengairan dan Saliran (JPS) akan membina beberapa kolam takungan air bagi membekalkan air ke sawah.

Beliau berkata projek perintis penanaman padi dua kali setahun di pulau itu bermula pada 2006 melibatkan kawasan sawah seluas 300 hektar di Padang Matsirat dengan mendapat bekalan air dari Telaga Tujuh.

"JPS mengenal pasti beberapa kawasan untuk dijadikan takungan air untuk menyalur air ke sawah," katanya kepada pemberita selepas melawat beberapa kawasan potensi untuk dibina kolam takungan di sini, pada Sabtu.

Katanya pada masa ini kebanyakan pesawah menanam padi setahun sekali kerana masalah bekalan air dan yakin apabila kolam takungan air dibina projek tanaman dua kali setahun akan dilaksanakan.

Johari berkata, pihaknya memerlukan peruntukan sebanyak RM700,000 termasuk RM500,000 untuk mengambil tanah projek kolam takungan di Bukit Lembu Kedawang manakala baki untuk memasang paip air di Bukit Hantu.

Beliau berharap pengeluaran padi di Langkawi akan meningkat kepada 5.5 tan metrik sehektar berbanding 3.5 tan pada masa ini.

Mengenai permohonan nelayan Sungai Kuah mengadakan jeti pendaratan, Johari berkata, pihaknya akan terlebih dahulu mengadakan perbincangan dengan Lembaga Pembangunan Langkawi (LADA) sebelum menimbang sebarang projek.

Mungkin LADA mempunyai perancangan untuk membangunkan kawasan Sungai Kuah di sini, katanya.

"Kita juga mahu melihat kedudukan jeti sedia ada dan sebarang keputusan perbincangan dengan LADA akan dimaklum kemudian", katanya.

Sumber

http://www.bernama.com/bernama/v5/bm/newsindex.php?id=485807

Planned funds shock bosses

PETALING JAYA: The Malaysian Employers Federation (MEF) has expressed surprise over the Government’s announcement of new pension and retrenchment funds.

No discussions had been held by the Human Resources Ministry with MEF and other stakeholders on the matter, MEF executive director Shamsuddin Bardan said, adding that the funds would have a major impact on the cost of doing business.

Human Resources Minister Datuk Dr S. Subramaniam had announced that a pension scheme for the aged and self-employed and a retrenchment fund for private sector employees would be introduced next year.

“The MEF Council is taken aback by the announcement that the ministry is already in the process of introducing the retrenchment fund for private sector employees although the proposed funds are still under discussion, and no final conclusion has been reached,” Shamsuddin said in a statement after the council meeting yesterday.

He said there was no need for a new retrenchment fund as the present system worked well, and current labour laws were adequate to punish delinquent employers.

Shamsuddin said employees were entitled to retrenchment benefits and an employer’s failure to fulfil this requirement constituted a very serious breach of law.

“The proposed retrenchment fund would be a bailout for recalcitrant and badly-managed companies while punishing good and well-managed employers,” he added.

“(Good) employers have to contribute to the fund on a monthly basis and in the event of a retrenchment, they have to pay termination benefits from their own funds. Employers should be allowed to manage and administer their own funds for retrenchment benefits.

“Reliable statistics should be made available to indicate the actual number of employers who have not paid their employees retrenchment benefits over the years.”

On the pension fund for the aged and self-employed, Shamsuddin said it was a duplication of the efforts by the Employees Provident Fund, which required monthly contributions from private sector employees (8%) and employers (12%).

It was unfair and costly for private sector employers to contribute to EPF as well as to the proposed pension fund, he added.

Source

http://thestar.com.my/news/story.asp?file=/2010/3/26/nation/5934884&sec=nation

Cuepacs seeks pay review

KUALA LUMPUR: The Congress of Unions of Employees in the Public and Civil Services (Cuepacs) yesterday welcomed the government's announcement on the monthly allowance for police personnel and the time-based promotion scheme, but said efforts of other public service sectors should also be recognised.

Its president, Omar Osman, said the current salary scheme for staff of the Road Transport Department, Immigration, Customs and the Fire and Rescue Department should be revised by the government.

He described the move by the government as timely as it would give policemen added impetus in carrying out their duties and responsibilities in maintaining public order and internal security.

"The nature of their duties means that policemen are exposed to higher risks so the announcement of a new pay scheme could not have come at a better time," Omar said.

Cuepacs has been pushing for a basic monthly salary of RM3,000 for civil servants in view of the rising cost of living.

Now, a constable only earns RM1,130 a month, effective Jan 1 this year according to a circular from the Public Service Department. It is understood that there is a service allowance (RM115), cost of living allowance (RM100 to RM300), housing allowance (RM275 to RM450) and transport allowance (per kilometre).

The cost of living allowance depends on where the policeman is based. Those serving in cities get the maximum of RM300 while those working in remote districts receive less.

Transport allowance ranges from RM0.70 to RM0.40 per km, depending on the number of kilometres claimed and the rank of the claimant. The housing allowance depends on the rank of the policeman.

"Based on the high cost of living, especially in urban areas, it is difficult for the rank-and-file policemen to support their families with the current salary scheme," Omar said.

"Those serving in other public service departments should have their salary schemes reviewed by the government," he said, adding that their jobs also involved risks and danger.

Those eligible under the revised scheme comprise 88,069 personnel from the rank of constables to sub-inspectors.

The revision was in line with the new policing duties that had been an integral part of initiating the National Key Result Areas.

The last pay rise for police and army personnel was in 2007 when their pay was increased by nine to 42 per cent.

Source

http://www.nst.com.my/Current_News/NST/articles/3salary/Article/index_html