Wednesday 30 July 2008

What is world perception toward Malaysian

Do we really think that the world is looking highly upon us? Do we think that we are a respectful nation? Do we think that anybody is looking up upon us?
1. Great Britain is imposing 6-month observation on our nation and thinking about mandatory entry visa for any kind of entry to UK. Our country is vision as the third world country and associated with forgery, overstay, etc.
2. A Malaysian student in Melbourne, Australia was beaten senseless a few days ago for unknown reason.
3. European Nation is thinking of banning our marine product forcing us to voluntary suspend our marine export that worth a few billions to our revenue.
4. United States is observing our juristic system and our enforcement on human right on recent Anuar sodomy allergation.
5. Singapore is putting up 12 miles nautica claim of water area around Pulau Batu Puteh without further consultation with Malaysia.
6. International Court awarded PBP to Singapore disregarding our rightful ownership of the piece of rock.
7. Korean and Chinese is dumping their cars in Malaysia at rock bottom price to acquire market share and weaken our local automotive industry.
8. We are the end-user of low class pharmaceutical product and still among the highest medicine dependant user in the world.
9. Our car is hardly recognized anywhere and not even at UK area where Proton own Lotus and sustaining Lotus existence in the market.
10. Amongst the wanted in the world for DVD piracy is a Malaysian.
11. We gave no threat in the world of sports. Name any sport and that is not a single nation in the world have worries about losing to us. Yes, there is Nicole, our only world top rank, but she was not Malaysian produced athlete, she work for it herself.
12. We are no strangers on drug transportation business. We possess good count of man and woman nabbed at the foreign airport for carrying drugs.
When you walk around and you see a tourist pass you by. What do you think is these peoples thought of you? What was their expectation to visit our country? Should you entertain them and show our hospitality? Should we prove them wrong or they just have to correct it themselves? Should you give them the racist eyes, the same look that they are giving you when you are in their country?
Maybe we should beat them senseless like they did to our student in Melbourne. Maybe we should give them enough drugs and call police to nab them instead. Give them enough to be convicted to our feared death penalty.
Not even Singaporean that share our ethnic and blood give us the proper respect. From no chewing gum and legal prostitution country, often flashing their headlight telling us to get out of their speeding way. Rubbish disposed from car window. Talking with tone like they are better.
How about Nepalese, Indonesian, Bangla and all these foreign that take our job and accept low pay in our industrialization and development? What about the desperate foreign woman that shaken a lot of local family stability and marriage? What about the man that now openly courting our woman and even possess threat to our woman’s safety? What about these white people, Japanese, Germans, French, etc that keep stealing our better rank position in company?
Perhaps, what we should do now is to be racist more than we ever been before, more than now. Perhaps by being racist and hate all the outsiders living in Malaysia, whether they are cheap labour or highly paid ex-pat, then we could be united and forget about this political racism among us three ethnic group.

Sunday 27 July 2008

Proton needs to produce own gearbox

NAP almost synonym with Proton from public view. Proton is still viewed as overly priced car with little quality values. New Proton management had taken drastic approach on regaining public confidence on the brand and significant improvement had been achieved, but not quite enough.
I personally can’t disagree with the public opinion. After all, I am the end user who have to put up with the long term loan, live with all kind of abnormal component noises and have little option to move up to a foreign brand.

Have Proton done enough to ensure their continuous existence and benefit the public with good and reasonably priced car?

If you read my previous article, I did mention about the ‘locality’ of the material and technology of making a car. Our automotive need to be architecture to meet those entire requirements to ensure our global competitiveness. Then our government need to ease up on the tax to ensure affordability.
Looking at the customer perspective, most of Proton buyer with Proton own Campro engine has major issues with the engine performance. Unfortunately, CAMRPO is the only engine that Proton own. How about the transmission? We do not manufacture our own transmission. Putting this into global competitiveness aspect, we will not stand a chance to have to outsource one of the major vehicle components.
As an immediate step, I would strongly suggest Proton to look onto second-generation engine and manufacture own transmission. Along the way, a new breed of suppliers need to be nurtured on producing high precision machining and forging as part of essential ingredient for engine and transmission.
Government can’t hide Proton under NAP forever. The public are not to shoulder Proton forever. It has to end and soon.
To prepare for the inevitable future, measures need to be taken on reducing the loan term. This 9 years loan is not healthy for automotive industry. Gradually, the loan term ceiling needs to be reduced. Second-hand market is hurting and new car buyer is further constricted.
To have Malaysia to be the automotive centre of this region is too late and not worth to fight for. Thailand is well too established with that. Thailand offers consistent local labour, higher range of technology availability, cooler climate, more food and better entertainment. Malaysia on the other hand offers unpredictable policy, prepaid quality recognition, high transportation cost, political intervention, self-interest and ever-changing foreign labour.

Tuesday 22 July 2008

Do we really need 100 mil pig farm?

Malaysia is populated by 67% Malays which are Muslim by default. Chinese accumulated about 73% of the remaining population.

At the age of modernization, socio economy contribution by these two races is very significant.

Per capita, Chinese probably out perform the Malays by miles. Chinese also played a major role on this country economy growth.

Pig is considered very dirty in Muslim perspective. It was told to me that pig was originated on the Noah ship sent from god, born by elephant with purpose no other than to clean the waste on the Noah ship. This ship hold a pair of all animals and you could imagine the waste produced by this animal and human on board.

I also read that pork meat contained a type of worm that has long-term effect on human health.
Pig was also blamed for JE spread years ago. But it was only pig associated with diseases; there are also threat of bird-flu from chicken and mad cow disease.

There are many negative ideas when it comes to pork consuming. Bottom line is that Muslim can’t accept pig in any form of anything that has to do with pig because pigs are ‘najis’. Pig scent itself already offended Muslim/ Malays. To have Malays to drink water filtered from a river that have pig farm on the other end would disgust the society. We can’t even compensate Malays with royalty such oil royalty on the profit sharing because it will be deemed ‘haram’.

Therefore, Malay can’t accept pig, as much as Chinese love to consume them.
How do we move forward with this issue? How do we apply what we are fighting for, democracy and equality? Is there a toleration point that would benefit us all?

Being a bumi, I felt the heat from these equality ideas. Being an educated man, I felt the unjust. Honestly, I do think somewhere of this unjust, there are strong reason for it to be carry on. The line might have to be shifted in term of pro-Malay segregation, nevertheless it can’t be totally eliminated.

To get Malay buy in require toleration by the non-bumis at some extend. Live your life like ours would make you more ‘us’. Continue separating our way of life would extent the racial differentiation among us.

On this particular issue, I believe disregarding our ethnic, all of us consume similar poultry product except pork. Imagine a country that one has not to worry about halal/haram as all the poultry sources in Malaysia would be halal. Chinese and Indian have never had any problem dining in a Malay restaurant or go to Malay wet market, but Malay just have to go to the halal source. Chinese consumer base is more restricted compare to Malay.

Can we live without pig product in Malaysia? Can we ensure all the poultry product halal in Malaysia? Can we be more Malaysian (Malay as majority)?

As long that we eat at different restaurant, shop at different market, study at different school and living in different areas, we can’t ever be as one. We are different in skin colour, eyes, hair and religion, but that can be the only separation that we have. You see, big sacrifice required from non-Bumis in term of way of life, almost as big as what Bumis is asked to sacrifice

Monday 21 July 2008

Datuk Ahmad Said and his E200 Kompressor

Can somebody whip this bloke senseless? How could Mercedes E200 Kompressor be any cheaper that Perdana V6? 50k were spent on Perdana V6 maintenance in two years. I am really hoping ACA is taking this public statement and start to look into it. This is daylight robbery. How could he justify that payment and how could he willingly sign off RM3.43 mil to spend on 14 cars??

What this Datuk meant, in the long run they can ‘buy’ back the car from Terengganu state at the price of a SAGA. They can drive it and practically personal cars at the mean time. Aren’t we talking about people difficult time with economy uncertainties, inflation and poor living standard?
I am not going to say much on this matter. I am just truly frustrated of this event. This probably the only highlight of UMNO leadership after acquires Terengganu from PAS. Each of those who receive the car should take a drive to Tasik Kenyir and stop by at each sagging wooden house and get these families to test drive the car. Maybe if they got a taste for it, it would make a better living out of them.

Thursday 17 July 2008

Malaysian development in the hand of foreign labour - Part 2

To have more local force and depleting foreign labour count need a serious consideration from both potential employer and employee.


Employer will face the most difficulties on undermining the fact that more effort needed to attract local labours. Needless to say, there are also financial obligations on proper wages and associated benefits. Furthermore, the employer will also face operation inconsistency risk with staff absents.


On the other hand, potential local employee having issues on the wages earning. Since the locals need the money here and make a permanent living here, similar salary standard for foreign workers deemed unfit to sustain living requirement. If the basic remuneration offered at RM700 a month, even poverty line set at RM1000 a month has not been exceeded.


By this simple fact, we know that our country is facing a serious problem, employment taken by cheaper foreigners, there are local unemployment rate to be resolve and employed local workers still within poverty bracket.


This is when government intervention is highly needed. We can’t afford to allow our job allocation taken by foreigners, huge cash outflow from country and high numbers of local in poverty bracket and unemployed.


The big question raised, is our economy be able to be sustained without this foreigners? To answer this, we can’t singularize all the sectors as one. One sector behave differently that the others.


Manufacturing sector have the severest impact. Since we are exporting lots of goods and up against other competitive exporter such Thailand, China, Taiwan and India, the survival key is to keep the cost at minimum. Still, with the foreign labour, we are barely competing with them. Tun Mahathir had commented on this, and I truly agree that we need to come up with other selling point to foreign investors to invest in our manufacturing sector such integrity and quality. Integrity prevent fund leakage and quality spells premium. Higher branding premium made sellable price higher and the gap would be able to compensate higher cost of labour.

Construction sector would also be affected. However, the effect is much reduced. Malaysian construction sectors offer a very good profit margin. To attract locals means more pay and these companies should be able to live with smaller margin.
If the government could protect a lot of concessionaire, national car, national airline, and other corporate bodies, I don’t see any reason why the government can’t impose something to protect the local job. We are very good at subsidies, incentive and exemptions; this is one of the aspects that those words can be put to good use

Wednesday 16 July 2008

TNB - Power generation and tariff

Quoted:
Why tariff review is NECESSARY?

Cost of supplying electricity has increased since the last tariff review. Most of the cost of supplying electricity has increased beyond TNB’s control. To ensure sustainable electricity supply reliability:


  • Large capital expenditure is required to maintain and enhance electricity supply infrastructure
  • Benefits from operational efficiency alone is insufficient to support the demand growth for electricity
  • A reliable electricity supply system is a prerequisite for the nation’s economic growth.
  • Low tariff leads to inefficient use of electricity and national resources.

Basically, TNB have to supply more power based on demand expansion from industrialization. TNB also have to curb or control domestic demand to overcome demand variable, which led to further infrastructure expansion requirement.
TNB have to generate electricity based on highest expected demand. Failure to do so will led to power overload and tripped the system. Power production is the key running cost and excess power supplied is deemed inefficient, as the power can’t be stored at high scale.
Domestically, TNB should first evaluate multi usage tariff systems. 200kWh usage that consumer enjoys lower tariff is not sufficient to cater daily basic requirement. TNB is saying otherwise as air conditioning is considered luxury even in a nation with over 30 degrees Celsius ambient temperature climate. This is absurd.

To move forward and benefit both party (TNB (Government) and domestic consumer), serious consideration of expanding the lower tariff usage quota is needed. Basic requirement list require expansion and ‘home business’ element need to be considered at our cost of living increase situation.
Secondly, TNB need to consider alternate charging. In industrial rate, there are peak and off-peak rate applies. Such application needs to be expanded for domestic consumers to benefit both parties. To have off peak rate will promote usage during off-peak and reduce excess electricity loss for TNB. Consumer will eventually limit A/C usage to off-peak period and so are other domestic electrical appliances such washing machine, rice cooker, kettle, iron and the list would go on.
Consumer shall not be burden of the requirement expansion from industrial and business requirement that give government direct benefits from tax revenues. Instead, a smarter system needs to be in place for the public to enjoy benefits from government enrichment.
Dam approach for electricity generation however should be less sensitive of variable output rate. Dam generate electricity from water flow that directly revolute the turbine and generate electricity. There are long start up procedure and cost for typical oil, gas or coal power plant that involve hours heating and priming before electricity to be generated. With vast rainfall per year in Malaysia, it would be the best long-term sustainable approach for electricity generation with lowest possible operational cost.
There is also other alternative worth pursuing such wind turbine. Detail study required on the wind pattern to see if the location fit for the application requirement. To have wind turbine on inshore area would benefit not only sustainable energy production but also provide a protective habitat for marine life thus boost marine output yield.

Even nuclear reactor seems reasonable to move forward to with quite substantial savings on the long term, the active material cost would escalate through time due to limited supply with expansion demand world wide. It would potentially be similar to NGV application now which is fairly cost effective to have NGV vehicle but eventually the NGV cost will go up and cost advantage would become insufficient.
Since TNB profitability is very biased to shareholders benefit only while losses are a subject for government protection, we as the aware public must look into curbing TNB wastage for our benefits.

Malaysian development in the hand of foreign labour - Part 1

I actually find this quite disturbing. We have poverty at one hand and not enough local labour on the other. As such we imported lots of foreigners (Indonesians, Bangladeshi, Nepalese, etc) to fill in the labour requirement gap. We have excess engineers and still we are importing ex-pat from Japan, German, United Kingdom, United States, etc.

Foreign labour considered cheap. They are. They can work long hours, expandable, dependable and replaceable in term of numbers. Locals however is more difficult to manage, more expensive and perhaps a bit more nuisance to the employer.

We are seeing foreign labours being utilized in almost all sectors, manufacturing, construction, agricultures and fisheries. The idea of employing these foreign labours is to minimize cost and maximize profits. The necessity of cost minimization is most important when we are dealing with goods (manufacturing) to be exported and we have to be up against the other bigger player such China, India, and Taiwan.

The remaining sectors however have higher returned margin and less bounded to this competitive environment.

Giving the options, it is natural for the employer to go for the cheaper and easier option, thus the foreign. This foreigner however is not cheap forever. Lots of them had realized their role and importance of the participation in our local development and started demanding for more. Simplest example is out maid sectors whereby it is harder to source for Indonesian maid and cost to have a maid kept escalating each year.

Prolonged dependency to the foreign labour will eventually led us to long-term negative impacts. Even if we look at ‘now’ scenario, we already seeing the following:
Depletion of local skilled labour
Huge amount of money transferred to foreigner country of origin – in exchange rate strength, this action is weakening our currency
Less cash being re-circulated back within the country – affecting local economic growth
Crime rate, tuberculosis back into the picture, gang, social value destruction, etc

The key principal to move forward to have more numbers for local labour and lessen the number of foreigners.

*** to be continue…

Friday 11 July 2008

A bit of facts on PLUS

Amongst the biggest shareholders for PLUS:
UEM (indirectly, Khazanah): 40%
Khazanah: 24%
EPF: 10%
ASB: 4%

As it stand on 2007 financial report:
Toll collection: RM 1.82 billions
Profit before tax: RM 1.31 billions (72% of toll revenue)
Liabilities: RM 10 billions
Asset: RM 15.9 billions
Tax exemption: RM 400 millions

PLUS have to publish this because they are a public listed company. The numbers speak for themselves.

Agreement between PLUS and G’ment is G’ment to G’ment.
Toll charges is ridiculously high
EPF only gave out 5% dividend.
We been forced to feed Khazanah, EPF,… but return to us is insignificant
Further tax exemption on highly profitable organization taking out further public money to enrich government and their high pays corporate figures.
PLUS do not have nett liabilities instead nett asset worth 5 billions.
….

There will be talk about reviewing concession clauses and reducing toll price for consumers. Will there be further compensation from public fund to PLUS for profit loss? Will the charge truly reduced to benefit the public and country economic growth (imagine small business can emerge on substantial reduce on transportation cost).

We can’t help to ponder if the toll still necessary. Are we seeing Khazanah to collapse without toll collection and eventually crippled economy growth? Or will be seeing more economic growth since transportation is amongst the biggest private and SMI spent? What is the effect of charging RM 0.01 or less per km compare to RM 0.14 per km to PLUS, Khazanah, Malaysia, SMI, and public?

I am stating again and again about wealth distribution. Last year we are seeing 5% EPF dividend, 7% ASB, low increment for GLC and yet we are the main contributors to this organization profitability. This organization (government) in no loss business and making tonnes of money directly from our pocket. The money does not circulated back to our wealth growth but disappear elsewhere.

We are paying a lot to own a car because of Proton (GLC), pay high fuel price because of Petronas want to export domestic output (GLC), high toll because of PLUS (Khazanah, GLC),….. The minute I buy a car, I would pay about 10,000 on excise duty and tax go to government, pay 100 on a full tank that bulk of it go to Petronas profitability and government tax, pay RM 100 to make a visit to my parents to PLUS that is own by GLC, barely left with anything by month end and still have to pay yearly income tax, road tax, licence renewal, …
Who is helping whom??

Thursday 10 July 2008

How competitive is our national automotive industry

The fact is we are paying a lot for our cars relative to our generated income. It is also a fact that we are bounded to 5 to 9 years high liability on hire purchase, which 9 years is most likely suited our affordability for the reasonable car.

Having our own car manufacturing plants and labels had put this fact into disgust prospective. Nowadays we are hearing those company was making losses instead of profit and sustainability of this local industries is in doubt.

What makes our car prices is so expensive locally? Are we victimized by the government policy that supporting this industry at our expenses? Is our car competitive elsewhere whereby the local excise duty protection eliminated? Numerical data on export success of our proven poor thus conclude that we either does not met up the consumer expectation or that we are less competitive elsewhere too.

To build a car not only involves assembly plant. To have a successful automotive industry require a total industrialization from developing the car, developing the components, manufacturing those components, process raw materials to make those components, logistic and human resources.

Typical and most sensible starting point to develop a local automotive industry is to have our own label and a donor car. This stage usually recognized as re-badge, which make the cars ours. This can be done with taking the car as it is or with minimal alteration (example 206, RIA,..) or critical components such platform and engine (example: Proton Wira, Saga, Perdana). This stage involve minor development which mainly consist the part to be changed, badge and certain validation requirement. Few suppliers were born on this stage.

Second stage is localization. Localization can be very beneficial for the manufacturer and local suppliers. Manufacturer acquires good level of cost benefits and the supplier would enjoy good margin. This resulted from imported component cost to locally manufactured cost. With local low cost labour in various government incentives on infrastructure, the suppliers’ manufacturing cost is relatively low.

Government plays a major role on this stage. It includes machinery and technology incentives, tax exemption and local industry protection. The mission is to accelerate the industry growth, expanding infrastructure and developing local experts.

From my observation, we did quite well on this stage. To date, we are capable of processing plastic, sheet metal, tooling fabrication, material compounding, glass manufacturing and lots more. The industry provides thousands job opportunities and raised hundreds if not thousands corporate figures.

We however failed miserably on the later phase. Our automotive industry always at threat of elimination and worse of all, our brands is the least appreciated by public.

One of the major sources of this failure is our dependency to global commodities and incapability of producing key high tech or safety components. With our relatively weak currency and have to import most of the material required prior to process them here make the cost relatively high and putting us out of competitive prospective.

In general, following are some of key ingredients requirement and its local availability:
Plastic
1. Polypropylene – Commonly used for common plastic part. Cheapest material. Widely used. Locally produced by Titan Chemical. Automotive usage usually requires compounding with additional substance.
2. Polyethylene – also produced by Titan
3. ABS (sheet or grain) – imported
4. PC (high clarity, usually used for headlight) – imported
5. Glass fibre – imported
6. Isocyanate/ polyol (to make foam) - imported

Sheet metal – Imported
Metal – Imported

Some of essential process requirement of components making:
Injection moulding – widely available
Thermoforming – widely available
Stamping – widely available
Casting (gravity/ pressure) – widely available
Forging (essential for transmission and high power engine component) – not available
Rubber extrusion – widely available


Just by looking at some of the core process and material, we know that our automotive industry is still lacking on the competitiveness. The idea of competitiveness is to be as close as possible to the source of the cost. This would mean getting the raw material at cheapest possible cost and cheapest possible process cost.

Plastic material derived from petroleum. We are petroleum producer country. We should be able to fully exploit these raw plastic material sectors. I don’t think that we done enough. Selling price of this material however in different scenario. Again global commodity price is the factors. This will eventually lead us to ‘subsidizing’ kind of solution to keep the cost down and stimulate local plastic industry growth.

Metal sheet that is the basis of stamped parts that makes the car structure, body panel, brackets and others is not available locally. We imported in roll form which put us in quite a distance to the its natural source states. We had Perwaja once that should drive itself to produce sheet metal, but the industry was loss without even started to this stage of application.

Machineries and facilities required to process these material was given significant advantages by our government before. There were grant system enable the supplier to have the machineries almost free. Thus, depreciation/ recovery element is almost insignificant and gave them the manufacturing cost advantage edge. Labour acquired overseas and cheap. Utilities especially electricity is abundance in Malaysia with IPP existence. Still manufacturer have to pay high cost on energy requirement. Having said that, I am sure we still have to competitive edge on this element is we want to.

What actually happened within this industry in Malaysia is greediness. There is also another element of import tax exemption. We need to understand the criteria to know the snowball effect to our industry.

No tax for component/ material that is not available locally. Imported goods but option available locally is exposed to tax.
There are two thing happened from the above criteria:
Locally produced goods can be more expensive relative to global price due to import tax imposed will usually make imported goods more expensive
Continuous trading for non-available local goods is more profitable and manageable compare to locally developed and produced.
Both of these effects have negative impact to our automotive industry. We tend to develop more traders rather than producers. Traders is just an extended middle man and we are not sure how many layers of middle man is there before we get the goods here. Each stop point will have its own management cost and profit taking.

Back to the greedy factor, this industry were started by giving out opportunities to ‘nobody’ and corporate figure for high prospect business, high-level assistance from government and strong profit margin. The industry did not evolve fast enough and the authority gave more incentive and protection. This resulted on easy-profit low risk taking by the suppliers. To leave this industry and loss its competitive momentum through protection had proven unwise. This sector grows with business opportunity but lack of technology acquisition and ownership. We develop bunch of profit lover kind of businessman with dollar sign on the forehead. We rarely saw automotive enthusiast figures, which prolonged the negative consequences of this effect.

So we had lots of money loving company owner with pocket full of money. Instead of re-investing to the industry on technology acquisition and continuous improvement, lots had diversified the business. Some turn out good and some turnout bad. Important thing is that the money had been driven away from the total industry development.

In conclusion, our automotive industry as it is now is not competitive. We are lacking of core infrastructure especially on raw material production. We are lack of technology availability that limited us from producing certain vital component on our own. We are not technology driven but profit oriented.

Cheap or expensive of a car is not actually the tag price itself, but affordability. Affordability is our purchasing power and for most of us we do not have the purchasing power. There were a few thing that the industry could do differently especially in wealth distribution. Should the wealth distributed more fairly and these corporate figures could live with less number that would give us more purchasing power. More buying will accelerate economic growth. Bear in mind that this industry provides thousands of jobs. These thousands income-earner also helping the parents. The parents will have better purchasing power and further economic growth. It could make a huge different and the chain effect would be outstanding.

I think I will stop here. I was just analyzing our situation now. Knowing that we could design a good way to move forward. I shall discuss about that in my next posting.

Monday 7 July 2008

Subsidies, economic growth and dependency

Malaysian lifestyle had been blended in with all kind of subsidies enjoyed by all layers. Some get more benefits and some less nevertheless everybody was benefited. Recent fuel charge hike shown the criticality of Malaysian dependency towards the subsidies.

While in the rural, farmers are subsidized with growth substance (baja), chemical control agent, seeds, etc plus exemption of tax, higher layers enjoys permits/rights, tax incentive, etc and all layers enjoys price control subsidies.

The root of this subsidization is to generate economy growth. While keeping the cost low for the public, government would enjoy the end tax return that would be greater relative to subsidy investment. Malaysian government had taken a step further of becoming the trader for most of the subsidized items/ elements. Agriculture product distributed by FAMA, RISDA, FELDA, etc. We see organization such LKIM for marine output. Crude oil by PETRONAS and the list would go on.

Malaysia actually operating like a big manufacturing plant whereby government placement at the top of the organization, not only as tax beneficiaries but the operational benefit itself.

Looking at Malaysia from ‘manufacturing plant’ perspective would reveal a new paradigm. As a ‘company’ called Malaysia, it is important to keep the labour and manufacturing cost low. Higher cost would mean less return for the same price. Having the total control of the ‘industry’ and supply network-making Malaysia as the sole body of local provider and enable itself to sell at premium without disrupting local demand elements.

Direct result from this action is high level of dependency of the public to government incentive. I am not sure whether it is the government failures on increasing the Malaysian living standards or they would like to keep this way to retain control to our dependant mindset.

Should we enjoy better standard of living, we would have greater purchasing power and less affected by rising cost of living. To make that happen, government should have a master plan on doing so. Countries revenues should be re-invested to the betterment of the public and benefit the public economic growth rather than stagnant and deteriorating living standard alone. Nevertheless, similar corporate bodies, individuals and foreigners are the largest beneficiaries of the re-investment.

Take Terengganu as a good example. Government is enjoying the crude oil sales profit, tax and royalties from Petronas. A large sum of the royalties belongs to Terengganu states and its people. Until today, Terengganu still lack of proper infrastructure, poor industrial growth and under-exploited tourism sectors all due to the royalties money did not came through fully as it should. Drive to Tasik Kenyir and you will see the ‘forgotten’ people of the royalties. Go to Kemaman and you will see the ‘great’ Pasar Payang and poor jetties. With the amount of money that should be there to develop Terengganu, I would expect to see full bloom agriculture industries, countless shopping mall with local people ownership/ partnership, free highway access to boom trading and tourism, marina for tourism, hi-tech fisheries jetties and high-tech marine processing industries. All these would create job and local wealth and with tourism sectors would add premium to local product and generate higher living standard throughout the local people.

What we are seeing in Malaysia is pretty much the opposite. Wealth distribution focused on individuals. Mega project benefit individuals and foreign contractors. High rank position monopolized by foreigners. Same group of people becoming directors to most of companies. Whilst actual funding to the public limited to ‘survival’ and further promotes dependency to the government.

Having said that, subsidization in Malaysia is merely to promote public dependency to government, keeping the cost low for the government by limiting public personal economy growth, ensure government role in distribution, and distracting public from government failures of total public economy growth.

To prove and express the level of our dependency to our government is the common phrase that we heard, asked and have to use for our betterment, ‘ada lubang’? Somehow, for whatever small or big scale business that we want to get ourselves into or even trying to get a job, the same question being asked or asked by ourselves of the existence of ‘lubang’. What is that actually tells you? You have to know somebody for you to move forward and most of the time that somebody is government people or linked to government people. No lubang mean 80% failures chances and that shows the level of manipulation that we have undergone to.

To sum up, do we actually require subsidies? The answer is no. But we need a better standard of living, fairness in wealth opportunities, better wealth distribution, better salary for working class, better return for local products to the producers, better infra-structure and low cost, toll free road and better government. Until then, we kind of depend on subsidies.

Thursday 3 July 2008

Racial Harmony - are we on the right direction?

Racial harmony needs to be nurtured from early days. Dialect, skin colour, body shapes, eyes, hair and each cultural trait distinguish us from each other. We can’t run away from this and forever we will not be the same.

We however could choose to be harmony with each other. We chose to tolerate each other’s weakness, embrace on each other’s strength and enjoy each other’s celebration.

But how do we achieve that in the system that design to fail us? Why are socio-economy and our early education system separating us from one another? Is this what we wanted and at the same time enchanting the work of no racism and Malaysia is for Malaysian? Is it worth to carry this in the names of politics?

In particular, I am really upset and annoyed with our early education system. How could we have ‘normal’, agama, Chinese type and Indian type school for our children? Why there is strong demand from political parties to keep having this system and separate our kids from one another? Where are we leading our country with racial harmony on this approach?

To me, there should be only one system. That one system require a bit of fine tune to make it works for everybody. There are religious study, languages and also availability of certain type of food is deemed important to each. This of course can be altered to meet each personal racial interest.

What could be the failure mode of the single stream education system?
1. Language barrier that led to performance of students especially for non-Malay students
2. Food barrier, which mainly around halal and non-halal food served.
3. Viable performance differentiation between ethnic groups
4. Ethnic grouping that led to inter-ethnic bullish, fighting, discrimination (either ethnic or religion biased) and favouritism.

The point of the matter is, these ethnic differentiation and racial harmony that we are seeking still best to be accomplished from the beginning. There are compromises needed for us to execute this singe-stream education system and achieve better standard of racial harmonies.

Nevertheless, we also need to look at the current multi-stream early education system pro and cons.

Pro:
1. Freedom to choose. (Only by principal, because most of the time it relates to majority ethnic group on the society and most likely only one type is available at each)
2. No language barrier for teaching.
3. Ethnic food serving on canteen.

Cons:
1. Additional 1 year on ‘peralihan’ class for secondary school. Which actually led to bigger issues for ‘Tingkatan 1 onward students due to 1 year older ego for ex-peralihan students, not to mention body size, hormones, etc.
2. More schooling expenditure for additional year on secondary schooling.
3. Ethnic biased students with deeper ethnic based mentality
4. More ethnic base clash at bigger scale and greater physical strength thus more damaging
Looking at some of this simple sample of pro and cons, I really don’t understand the importance of having this optional and yet very much ethnic biased early educational system in Malaysia. Why must we are separated from each other and yet claimed for racial harmony of the ethnic mentality being planted to us from the beginning. Is this truly what we need and wants, or it is merely political interest of each ethnic party to show that they are doing this for the benefit of the people and by not having this system is a discrimination to the ethnic group.

By having some simple ground rules and a bit of tweak to the education system, namely the subjects, we could protect each core values and interest.

Language
Bahasa Melayu still be the base language. However, it is worth to have the Malay to learn Indian and Chinese dialect, as these are the common language used in Malaysia. If Chinese and Indian have to put up with Malay language and accept it as the primary language, why can’t Malay be push a bit to learn Chinese and Indian.
Rather than only teaching the fundamental of each languages (including English), reading and speaking habits need to be pushed. Heavy weight on the ‘karangan’ need not to be enforced to allocate the time required

Food
Primarily, Malays concern most of Halal Haram food. If the non-Malays would be able to accept serving only Halal food, that would resolve the situation. In fact, I think all the food serve in Malaysia should be Halal based. I would love to just walk in to any restaurant disregarding Indian or Chinese type and enjoy each others cooking style.

Ethnic based clash
Kids will be kids. Only by growing up together that they will acquire mutual respects to each other.

Ethnic based class based on performance
I am worry about this line. Based on my experience, on majority of the school will have highly performed students in top class and others on the lower class. Most of the time it is required to fit the way of teaching to intellectual and achievement level of the students. However, the majority of the students, will be more Chinese on top class and more Indian on the lower class. Malays student will be around the middle class. I think this is the most worry that we or the government have. Do we have to remain apart so that we will not be measured against each other or shall we face the fact and motivate ourselves and our kids to reduce the gap? Eventually, this will take us to bigger picture of job, wealth and living standard segregation within the ethnic groups.

Subject and performance measurement system
I think we are way behind in our system. Our schooling system still ‘generalized’ and yet there are lot of weight on Bahasa Melayu. We need to do some check and balance, introduce new subjects, eliminate unnecessary subjects, have core and elective subjects, review scheduling (repetitive subject on daily basis, no room for reading in between), pendidikan jasmani versus extra co-curricular activities, math and science content standards, positive activities and experiments, moving away from ‘memorizing’ type to more diversify of comprehension, iq enhancement and creativities. Rather than only measuring performance through exams, some practical element need to be added such science project, literature based on reading… Make the school a bit lively and intelligence provoke.