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LEAVING THIS BLOG NOW...................

As I will be on a long months' holidays starting 7th July 2010 prior to my retirement in October 2010, I will suspend my service in updating my blog on daily issues or facts of interest.

I would like to thanks everyone for having the interest in surfing my blog and sharing the thoughts with me.

Thank you to everyone.


Monday, June 30, 2008

Equal treatment for Sabah, S’wak Bumis

There’s air of uneasiness among the young entrepreneurs: Chamber chief

Bumiputera businessmen in Sabah and Sarawak should be accorded equal treatment enjoyed by their counterparts in Peninsular Malaysia.

In making the call here Saturday night, Kadazandusun Chamber of Commerce and Industry (KCCI) president Frederick Edwin Lojingki said the Bumiputera entrepreneurs in the two states wanted fairness and a ‘level playing field’ when it came to the distribution of the country’s wealth.

“No more ‘handicap’ for us.

“We don’t seek much. All we ask is a level playing field and what the federal government has accorded to the Bumiputera entrepreneurs in the peninsular in terms of opportunities,” he said.
Lojingki was speaking during the ‘2008 DCCI (Dayak Chamber of Commerce and Industry)-KCCI Joint Gawai-Kaamatan celebration at Imperial Hotel here.

Minister in the Prime Minister’s Department Tan Sri Bernard Dompok; Energy, Water and Communications Deputy Minister Datuk Joseph Salang, DCCI president and deputy president Tan Sri Leo Moggie and Dato Sri Celestine Ujang respectively were among those present during the function.

Lojingki said immediate steps were needed to rectify whatever shortcomings there were, adding that there was presently a strong undercurrent of uneasiness among the younger generation of East Malaysians on how the past and the current wealth of the country were being utilised and unevenly distributed.

He also said they would pursue vigorously to the federal government the many requests they made, such as the specific allocation of RM800 million for the year 2008.

These allocations were meant for the Bumiputeras in the two states to alleviate their economic shortcomings.

On another issue, Lojingki said they viewed seriously the problems affecting the local companies in the two states who were not given sufficient opportunities to participate in projects implemented by the federal government in the peninsular.

He felt it was only too unfair for them when most of the local major jobs were given to the companies in the Peninsular Malaysia.

DCCI advisor Datuk Amar Leonard Linggi Jugah, KCCI organising chairman Datuk Ajit Galun and DCCI organising chairman Telajan Luyoh were among those present.

Call for more aid for minority Bumis in business

More assistance ought to be given to minority Bumiputeras, such as Dayaks in Sarawak and Kadazandusuns in Sabah, in their business ventures which have been badly affected by the hike in prices of fuel and materials.

Dayak Chamber of Commerce and Industry (DCCI) president Tan Sri Leo Moggie said this at the DCCI-KCCI (Kadazan Dusun Chamber of Commerce and Industry) joint Gawai-Kaamatan celebration yesterday

Among the steps and measures the government should consider is reviewing contracts awarded to entrepreneurs facing financial difficulties, who might be forced to abandon their projects.

Moggie said due to the hike in prices of fuel and materials, many had been forced to abandon their fields and farming activities.

“New economic policies are still essential and must be implemented because we know they help us venture into new fields. More emphasis should be given to Sabah and Sarawak as they are still a little bit behind,” he said.

He, however, reminded them not to discredit what have been done by the federal government and achieved through the implementation of development programmes and activities.

“A lot have been achieved and much done although there might be some handicap in certain areas, and this demands some review.”

Moggie said to be on par and survive the challenge, DCCI and KCCI, as umbrella organisations for respective members of the community, must encourage members to venture into business and industry.

Calling them to come out from their cocoon of traditional farming and hunting, he urged them not to be shy or ashamed although they could be still lagging behind others in the business world.

“I know our strong farming background. The world of business is new thing for us, it is something we need to learn and want to participate in,” he said.

Moggie said the event provided an opportunity for members to exchange goodwill, cultural experience and general networking.

Equally important would be the need to put into practice the call by the government for greater national unity and integration through intermingling and interacting during a joint cultural festival of this nature.

“The Dayaks of Sarawak and the Kadazandusuns of Sabah share many socio-economic and cultural similarities. Both communities also have similar aspirations,” Moggie said, calling for both chambers to strengthen their unity, cooperation and better understanding for mutual benefit.

Sunday, June 29, 2008

94,100 liter diesel subsidi dirampas

Polis Marin Sarawak merampas 94,100 liter diesel subsidi yang diseludup dan diseleweng penggunaannya dalam tempoh enam bulan pertama tahun ini.

Timbalan Ketua Polis Marin Sarawak, Supt. Mohamad Norshah Mohd. Idris berkata, antara lokasi tumpuan operasi ialah di pelabuhan dan jeti.

"Empat kes berkaitan penyeludupan dan penyelewengan diesel dicatat dalam tempoh yang sama, majoriti berlaku di Kuching dan kesemua kes ini diserahkan kepada Kementerian Perdagangan Dalam Negeri Dan Hal Ehwal Pengguna untuk diambil tindakan undang-undang," katanya di sini hari ini.

Terbaru membabitkan rampasan 82,600 liter diesel subsidi bernilai RM293,108 dalam serbuan di sebuah kilang di estet perindustrian Bintawa di sini pukul 3 petang semalam, kata Mohamad Norshah dan menurutnya seorang lelaki tempatan berusia 34 tahun turut ditahan.

"Hasil soal siasat mendapati kilang tersebut dijadikan tempat penyimpanan minyak diesel subsidi dan dipercayai membekalkan diesel itu bagi kegunaan pengilang-pengilang berhampiran," katanya.

Beliau juga memberi jaminan arahan kerajaan untuk perbelanjaan berhemah berikutan kenaikan harga minyak tidak akan menjejaskan operasi penguatkuasaan polis marin di perairan Sarawak.

- Bernama

Thursday, June 26, 2008

Kastam kutip RM2b daripada levi sawit

Jabatan Kastam Diraja Malaysia (KDM) dijangka mengutip RM2 bilion setiap tahun mulai tahun depan, ekoran keputusan kerajaan mem-perkenalkan semula levi keuntungan luar biasa bagi minyak kelapa sawit mentah (CPO) dan minyak isirong sawit mentah (CPKO) mulai 1 Julai ini.

Pengarah Kastam, Bahagian Cukai Dalaman, Datin Azizah Idris, berkata anggaran itu berikutan harga CPO kini boleh mencecah lebih RM3,000 setan, berbanding sebelum ini.

Beliau berkata, dengan pasaran dan harga yang amat positif sekarang, kerajaan bersetuju untuk mengenakan semula levi keuntungan luar biasa bagi CPO dan CPKO kepada 407 pengilang di negara ini berkuat kuasa 1 Julai ini.

Katanya, berikutan penguatkuasaan itu KDM dijangka akan memperolehi RM1 bilion levi berkenaan pada hujung tahun ini.

"Langkah itu akan menambah hasil negara yang kini berdepan kenaikkan kos sara hidup ekoran perkembangan semasa ekonomi dunia," katanya pada sidang media selepas mengadakan taklimat pengenalan levi itu kepada 45 pengilang CPO dan CPKO di Jabatan KDM di sini, semalam.

Levi luar biasa bagi sektor kelapa sawit pernah dilaksanakan pada 1999, bagaimanapun dibatalkan pada 17 Disember 2003, ekoran harga CPO dan CPKO menurun dibawah aras RM2,000 satu tan yang ditetapkan pada masa itu. Pengenalan semula levi itu, ekoran kini harga CPO boleh mencecah lebih RM3,000 satu tan.

Azizah berkata, levi dikenakan kepada pengilang apabila aras harga CPO mencecah RM2,000 setan dan kadar 15 peratus setiap tan untuk Semenanjung dan 7.5 peratus di Sarawak dan Sabah.

"Perbezaan kadar itu berikutan kerajaan Sarawak dan Sabah juga mengenakan cukai kepada pengilang terbabit. Penetapan harga setan metrik CPO dan CPKO berdasarkan kepada harga bulanan nasional yang dihebahkan Lembaga Kelapa Sawit Malaysia (MPOB)," katanya.

Beliau berkata, perintah menguatkuasakan levi keuntungan luar biasa bagi CPO dan CPKO mulai 1 Julai ini ditandatangani Menteri Kewangan Kedua, Tan Sri Nor Mohamed Yakcop, pada 5 Jun lalu dan diwartakan pada 23 Jun lalu. Katanya, dengan penguatkuasaan semula levi itu, pengilang tidak lagi perlu membayar ses CPO dan CKPO kepada MPOB seperti sebelum ini.

Azizah berkata, mulai sekarang setiap pengeluar CPO dan CPKO hendaklah didaftarkan dengan KDM dan permohonan bagi sijil pendaftaran hendaklah dibuat di pejabat kastam terdekat di setiap negeri.

"Apapun levi cuma akan dikutip mulai 14 Ogos depan dan mereka yang gagal berbuat demikian boleh dikenakan penalti.

"Apa-apa levi yang masih belum dibayar selepas hari terakhir levi kena dibayar penalti 10 peratus daripada amaun yang belum dibayar," katanya sambil menambah kadar penalti sebanyak 10 peratus akan dikenakan bagi tempoh 30 hari kedua dan tiap-tiap 30 hari berikutnya.

Tuesday, June 24, 2008

Economy likely to grow at 5.5 per cent

The Malaysian economy is likely to grow at 5.5 per cent this year amid the external conditions and high inflation.

“The figure (5.5 per cent) is still a respectable growth rate given the challenges,” Public Bank Bhd group economist Nasaruddin Arshad said in the bank’s Economic Review for June, released here yesterday.

Last year’s growth was at 6.3 per cent.

Nasaruddin said based on the strong economic fundamentals, the Malaysian economy has the capacity to sustain its domestic activity and weather the challenges or headwinds.

He said the country’s economy has strong fundamentals which had been aggressively built in the post-Asian financial 1997/98 crisis.

“The strong economic fundamentals are characterised by strong external position, strong and stable ringgit, high national savings and strong banking system.

“The government also continues to maintain its growth-friendly fiscal and monetary policies to support growth without unnecessary pressure on inflation,” he said Nasaruddin said Malaysia’s major trading partners would also continue to provide support to the country despite the global economic slowdown.

“Although expectations remain that major global economies such as US, euro area and Japan are likely to soften in the second half of this year, they are unlikely to enter into a recession.

“Based on this, it is not unreasonable to conclude that these economies should remain supportive to Malaysia’s exports and thus the Malaysian economy,” he said.

He said the sustained growth in Asia was also positive to the Malaysian economy as the intra-regional trade between Malaysia and these economies had grown in significance in recent years.

Nasaruddin said the strength of Malaysia’s external position was reflected in the high international reserves and low external debt.

“As at May this year, the level of international reserves has increased to US$125.2 billion (US$1=RM3.26) and sufficient to cover 9.8 months of retained imports and about five times short-term external debt, helped by the consistently large current account surplus and the steady inflows of foreign direct investment and portfolio capital,” he said.

— Bernama

Monday, June 23, 2008

Govt workers in business

Permits to be given to low-income earners to help them cope with burden following fuel price hike: Abdullah

The government will issue small business permits to low-income earners to help them cope with their economic burden following the fuel price hike, Datuk Seri Abdullah Ahmad Badawi said yesterday.

The prime minister said government employees could also apply for the permit, which would cover petty trading and hawker’s licences in locations such as agricultural market, night market and housing areas which had spaces for such purposes.

“The permit can be short-term or long-term depending on the applicants’ requirement,” he told reporters after briefing the Barisan Nasional (BN) members of parliament on subsidy restructuring at the Auditorium Perdana, Angkasapuri.

Answering a question, Abdullah said government employees, however, needed to get permission from their department head and that the business should not interfere with their office work.

“If this is not causing them to neglect their work, they can apply … subject to approval from the head of department,” he said.

He said the government was also coming up with plans to help the Orang Asli under the social safety net programme being finalised.

Abdullah said the government had also decided on steps to help the small-and-medium industry cope with the burden arising from the fuel price hike.

He said the anti-inflation committee had agreed to the measures but they needed to be scrutinised further by the Finance Ministry as they involved tax matters.

“We will decide in the very near future. Although the treasury has suggested that the matter be announced during the tabling of 2009 Budget in August, I feel that if they can be announced much earlier, it will be of great help to those in need,” he said.

The prime minister also said following the high global fuel prices, specific directives would be issued to enhance energy efficiency.

In this context, he said the government had agreed to find other sources of energy such as solar and wind power as well as biofuel and the possibility of developing nuclear energy.

“But we need to study this (developing nuclear energy) because it is not easy to dispose of nuclear waste,” he said, adding that several companies had expressed interest in developing solar and wind power facilities.

He said steps would also be taken to increase productivity in the commodity sector, such as oil palm, without increasing the areas for plantation.

“This is a possibility we can now implement following the advancement in technology,” said Abdullah.

He said the government also wanted ensure that the innovation and creativity sector be strengthened, and administrative efficiency enhanced, to lower the cost of doing business in Malaysia so that the country would continue to be a profitable business destination even with the high fuel price.

He said Malaysians might also need to change their lifestyle, particularly in minimising waste in their daily lives.

“I don’t mean we should be stingy. It’s just that we should avoid wastage…in good times or bad.”

He said the short-term and long-term measures identified by the government should be implemented for the benefit of the people in the long run.

Asked how far the people accepted the fuel price hike recently, Abdullah said, there were those who understood the necessity due to the global oil price hike.

“But there are those who still complain…that the hike is too high. But they should also accept the fact that despite the increase, the government also implemented measures to lighten their burden,” he said.

Abdullah said the people, however, only interested in reacting to the issue and not the measures taken by the government.

— Bernama

Wednesday, June 18, 2008

Harga beras S’wak diseragam

Harga sama dengan Semenanjung, beras dijamin cukup bagi tempoh tiga bulan setengah

Harga beras di Sarawak diseragamkan dengan negeri-negeri di Semenanjung termasuk Sabah bagi membolehkan masalah kekurangan beras tidak berlaku di negara ini.

Justeru, Kementerian Pertanian dan Industri Asas Tani memberi jaminan bahawa bekalan beras di negeri ini mencukupi untuk tempoh tiga bulan setengah akan datang.

Menterinya, Datuk Mustapa Mohamad berkata, walaupun sebelum ini masalah kekurangan beras turut menular ke Sarawak namun pihak Beras Corporation Sdn Bhd (Bernas) telah bertungkus-lumus untuk menyelesaikan masalah itu.

“Kita telah membuat keputusan bahawa harga beras import mengikut peratusan telah diseragamkan termasuk Sarawak, Sabah dan Semenanjung Malaysia, “ katanya.

Bercakap pada sidang media selepas mengadakan mesyuarat dengan Kementerian Pemodenan Pertanian Sara-wak di sini semalam, Mustapa memberitahu harga seragam itu hanya tertakluk di bandar-bandar sahaja.

Beliau berkata, harga seragam beras di Sarawak hanya melibatkan empat bandar utama iaitu Kuching, Sibu, Miri dan Bintulu.

Bagaimanapun, katanya, harga beras di luar bandar terutama di kawasan pedalaman mungkin agak berbeza kerana tertakluk kepada kos pengangkutan.

“Kita percaya penyeragaman harga beras import itu tidak menimbulkan bebanan kepada pengguna.

“Malah, Bernas juga memberi jaminan bekalan mencukupi bagi keperluan penduduk negeri ini,” katanya.

Sementara Pengurus Besar Wilayah Bernas Corporation Sarawak, Mohd Kamaluddin Effendie memberitahu masalah kekurangan beras di negeri ini tidak serius kerana bekalan mencukupi.

Menurut Mohd Kamaluddin, masalah bekalan beras tidak sampai kepada pengguna hanya berlaku di luar bandar disebabkan kos penghantaran mengambil masa agak lama.

“Kita (Bernas) memberi jaminan bekalan beras mencukupi untuk keperluan penduduk negeri ini.

“Justeru, penduduk tidak perlu risau dengan masalah ke-kurangan beras, “ tegasnya.

Beliau menarik perhatian, Bernas juga mengambil tindakan drastik bersama Kerajaan Negeri dan Pusat untuk memastikan bekalan beras sampai kepada pengguna.

Malah, katanya, usaha mempertingkat pengeluaran beras juga dipergiatkan dan para pemborong dinasihatkan agar tidak melakukan penyelewengan terhadap pengguna.

Tuesday, June 17, 2008

Bajet 2009 tidak membebankan

Menteri Kewangan Kedua Tan Sri Nor Mohamed Yakcop semalam membayangkan bahawa Belanjawan 2009 yang akan dibentangkan Ogos depan tidak akan membebankan rakyat.

“Tentang Bajet 2009, saya tak nak beritahu (secara terperinci), kalau saya beritahu sekarang, (nanti) tak ada suspens.

“(Bagaimanapun) Ada berita baik. Memang bajet kali ini tidak akan membebankan rakyat, sebab kita nak cari kaedah untuk membawa kemakmuran kepada rak-yat,” katanya kepada pem-berita selepas mengadakan perjumpaan dengan agensi-agensi Kementerian Kewangan Persekutuan di sini semalam.

Menurut Nor Mohamed kerajaan akan terus berusaha untuk memberi fokus kepada isu-isu besar dalam negara termasuk menjadikan sistem pengangkutan awam lebih cekap dan melakukan transfomasi kepasa ekonomi ber-asaskan pengetahuan untuk kebaikan rakyat.

Ditanya sama ada kerajaan menetapkan jangka masa tertentu untuk keluar dari krisis kenaikan harga minyak sekarang, Nor Mohamed berkata perkara itu sukar ditentukan kerana situasi yang dihadapi berkait rapat dengan situasi global.

Bagaimanapun, Nor Mohamed berkata Malaysia bukan kali pertama menghadapi situasi sukar yang datang datang dalam pelbagai bentuk dan pola seperti ini dan Malaysia telah membuktikan mereka keluar daripada masalah tersebut.

Sebagai contoh katanya Malaysia berjaya keluar daripada krisis ketidak seimbangan ekonomi antara kaum pada tahun 1969, kemelesetan ekonomi 1986 dan 1987 dan krisis mata wang pada tahun 1997 dan 1998.

Katanya selepas keluar dari krisis berkenaan, Malaysia mendapat pujian daripada banyak negara termasuk Tabung Kewangan Antarabangsa (IMF) kerana pendekatan konvensional yang digunakan Malaysia ketika itu berjaya tanpa perlu meminjam daripada IMF.

“Malaysia merupakan negara unggul yang dapat me-mulihkan ekonominya tanpa mendapat satu sen pun daripada IMF. Sebab kita yakin dengan kaedah kita. Selepas itu banyak negara puji Malaysia.

Pada masa itu mereka kata kita lakukan sesuatu yang tidak masuk akal,” katanya.
Nor Mohamed juga berkata setiap kali Malaysia menghadapi cabaran, Malaysia bukan sahaja berjaya bertahan malah negara bertambah maju dan makmur sebaik sahaja keluar dari krisis berkenaan.

Katanya satu daripada faktor kejayaan Malaysia ialah kerana Malaysia mengamalkan pendekatan “fleksibiliti” dalam menguruskan ekonomi dan kewangannya terma-suk dalam sistem perbankan di negara.

— Bernama

Thursday, June 5, 2008

PETROL RM2.70 (Up 40%) DIESEL RM2.58 (Up 63%)

Government increases fuel prices to cut spiralling cost of subsidies

Petrol and diesel prices go up by 78 sen and RM1 per litre respectively effective today, the highest increase in these fuel prices ever.

Prime Minister Datuk Seri Abdullah Ahmad Badawi, in announcing the price increase yesterday, said the new price for petrol at the pump would be RM2.70 per litre (a 40.6 per cent jump) and diesel, RM2.58 per litre (a whopping 63.3 per cent jump).

Abdullah told a news conference at his office that the Cabinet had agreed on a cash rebate for Malaysian owners of private cars and motorcycles to ease the burden of the rise in the fuel prices.

“A cash rebate of RM625 per year will be given to owners of private cars of engine capacity of up to 2,000cc and pick-up trucks and jeeps of up to 2,500cc.

“Owners of private motorcycles of engine capacity of up to 250cc will be paid a cash rebate of RM150 per year,” he said.

The prime minister said the cash rebate would be given to the owners of the cars and motorcycles when they paid or renewed their road tax.

He said the cash rebate would cover cars and motorcycles for which the road tax was renewable between last March 31 and April 1, adding the rebate would be given in the form of money order at post offices nationwide beginning this July 1.

The increase in prices is the highest ever. On Feb 28 2006, the prices of petrol and diesel went up by 30 sen, with petrol costing RM1.92 per litre and diesel RM1.58 per litre.

The announcement yesterday is part of the government’s new fuel subsidy scheme mechanism which seeks to reduce the fuel subsidy amounting to an annual RM53 billion.

The government’s move to float the fuel price in accordance with the global market price still makes Malaysia one of the countries with low prices for fuel in this region.

The new prices of petrol and diesel are far lower than the RM5.20 and RM4.22 for the fuels, respectively, in Singapore which has floated the prices as well.

The prime minister said the Cabinet had decided that the owners of cars and motorcycles excluded from the cash-rebate category would have their vehicle road tax reduced according to the following rate effective last June 1:

• Owners of private petrol and diesel vehicles with engine capacity of more than 2,000cc will have the road tax reduced by RM200.

• Owners of private motorcycles of engine capacity of more than 250cc will have the road tax reduced by RM50, subject to a minimum of RM2.

Abdullah also said that there would be no change in the prices of liquefied petroleum gas (LPG) and natural gas for vehicles (NGV), with LPG at RM1.75 per kg and NGV at 63.5 sen per litre.

He also announced the streamlining of the diesel subsidy for approved transportation companies, vessel transportation companies and fishermen.

“Currently, transportation operators, fishermen and vessel owners enjoy different subsidies for diesel. Fishermen buy diesel for RM1 per litre and vessel owners buy at RM1.20 per litre.

“The Cabinet has agreed to streamline the price of diesel (for these categories of consumers) at RM1.43 per litre effective June 5 2008.

This price would not jeopardise transportation companies under the fleet card system because they will continue to enjoy the petrol and diesel subsidies at this price,” he said.

He said the government had agreed to pay in cash a portion of the difference in the old and new prices to fishermen and vessel owners, as follows:

• Payment of RM200 cash monthly to every owner and crew of Malaysian-owned vessels registered with the Fisheries Department.

• Payment of incentives to vessel owners at the rate of 10 sen per kg of fish landed by approved fishing vessels at fish landing centres in the country.

“The payments will be managed by the Malaysian Fisheries Development Authority.

The Cabinet has also decided that operators of river passenger boats will be given cash payment of 10 sen per litre based on an approved quota,” he said.

Abdullah also announced that beginning July 1 2008, the prices of gas supplied by Petronas in Peninsular Malaysia will be changed as follows:

• For the electricity sector, the price will be increased from RM6.40 per mmBtu (Million British Thermal Units) to RM14.31 per mmBtu.

• For industrial sector consumers using less than 2 mmscfd (Million Standard Cubic Feet Per Day), the price fixed by Gas Malaysia Sdn Bhd (GMSB) will be raised from RM9.40 per mmBtu to RM24.54 per mmBtu.

• For industrial sector consumers using more than 2 mmscfd, the price of gas supplied by Petronas will be raised from RM11.32 per mmBtu to RM32.56 per mmBtu.

“However, special assistance will be given to consumers of GMSB gas, i.e. for the category of small and medium enterprises. These consumers will enjoy a lower gas tariff rate.

“In line with the sustainable energy policy, Petronas will reduce the subsidy for the electricity sector progressively in line with the current market price, up to the 15th year, when the level reaches the market price,” he said.

At the same time, he said, the subsidy for the industrial sector would be reduced progressively in line with the market price, up to the 11th year, when the level reaches the market price.

Abdullah said that in announcing the new electricity tariff, Tenaga Nasional Bhd (TNB) would have to bear the increase in the price of coal in the global market.

He said that with the restructuring of the gas subsidy and increase in the price of coal, the government had approved a new electricity tariff structure to enable TNB absorb the fuel cost for gas and coal.

The new tariff structure, effective July 1 2008, would apply to all domestic, commercial and industrial consumers in Peninsular Malaysia only and a new structure would be announced soon for those in Sabah and Sarawak, he said.

In line with the government’s desire to safeguard as much as possible the welfare of the low- and medium-income group, the new electricity tariff structure would not affect consumers who use less than 200 kilowatt hour (kwh) per month, with the electricity bill estimated to be RM43.60.

“This means that 59 per cent of households in Peninsular Malaysia will pay the same amount for electricity so long as they maintain their level of usage,” he said.

Commercial and industrial users will see a rise of 26 per cent in their electricity bills, he added.
“However, retailers, shopkeepers and small restaurant operators as well as industrial users such as cottage enterprises using not more than 200 kwh a month will only see a rise of 18 per cent,” he said.

Touching on the contribution of independent power producers (IPPs) and palm oil producers towards easing the financial burden on the people, Abdullah said the IPPs were expected to generate more profits from market returns.

“In line with the restructuring of the gas subsidy, the government has decided to implement provisions of the Windfall Profit Levy Act 1998 on IPPs in garnering their contribution to meeting the rise in the cost of fuel to generate electricity.

“The quantum of the levy is 30 per cent of the excess return on assets at the threshold value exceeding nine per cent based on their audited accounts,” he said.

The prime minister said palm oil producers had recorded increased profits following the high price for palm oil in the global market.

As such, he said, the Cabinet had agreed to abolish the Cooking Oil Stabilisation Scheme (COSS) effective July 1 2008 and implement provisions of the Windfall Profit Levy Act 1998 on palm oil producers.

The levy would be imposed at the stage of the millers:

• For Sabah and Sarawak, it is 7.5 per cent for every tonne of crude palm oil (CPO) which exceeds RM2,000.
• For Peninsular Malaysia, it is 15 per cent for every tonne of CPO which exceeds RM2,000.

— Bernama

Wednesday, June 4, 2008

Oil futures suspends

Prime Minister Datuk Seri Abdullah Ahmad Badawi suggested the suspension of oil futures trading to curb the soaring prices of other commodities.

Some countries such as Japan have taken the lead in instituting certain bold measures towards curbing the steep rise in prices, he said at the opening of the 22nd Asia Pacific Roundtable organised by the Institute of Strategic and International Studies (ISIS) Malaysia and Asean ISIS here.

He, however said, such measures would require negotiation and agreement at the international level.

The suggestion for a possible suspension of trading of oil in the futures market has been put forward to the international community for examination as crude oil price has become a major contributor to the soaring prices of other commodities such as crude palm oil, rubber and tin.
Such a measure is expected to prevent the speculative buying on the market.

Abdullah said the escalating food, fuel and commodity prices were placing enormous burden especially on the poor.

Abdullah said the price of rice — the staple food of Asians — had gone up 76 per cent in the five months from December last year to April this year, while overall food prices had risen 83 per cent in the last three years and oil prices had quadrupled during the last six years.

Hence, he said the Asean Plus Three (the 10 Asean countries and China, Japan and South Korea) could also do its part by building up the Asean Food Security Reserve as it does not have adequate stocks currently to effectively stabilise the prices and supply of rice among the members.