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Friday, April 22, 2011

Malaysia just cannot have it both ways





COMMENT By BARADAN KUPPUSAMY

The Chinese demand equality and meritocracy and, for these reasons, are willing to back the DAP despite its alliance with the Islamic PAS and the scandal-ridden PKR. 

THE recent Sarawak election, which saw urban Chinese voters supporting the DAP and voters in the rural heartland – mostly Malays, Melanaus and Dayaks – backing the Barisan Nasional, has sparked renewed debate over how race, ethnicity and, perhaps, religion are colouring the political divide.

Having a two-party system is a healthy trend in an emerging democracy like ours, but it would be unhealthy – and even dangerous – if the political divide is widening on account of race and religion. The mostly Chinese DAP representatives will be occupying the Opposition bench in the Sarawak Legislative Assembly while on the government side, the one that controls the state purse, is overwhelmingly Malay/Melanau and Dayak.

The DAP, by dominating the Opposition bench, can raise a ruckus, but cannot deliver the goods.
Meanwhile, the SUPP, the party that took the biggest hit, is divided over the issue of representation without popular support.

Writing is on the wall: The results may give the Chinese community something to shout about but not necessarily in the long run.
 
The SUPP instructed Miri strongman Datuk Wong Soon Koh, who retained his Bawang Assan seat, to decline being in the Cabinet but he accepted, sparking internal turmoil and raising the possibility of a breakaway faction.

Most SUPP leaders want the party to stay out of the Government but a minority said, if unrepresented, the Chinese community that is heavily reliant on business and dependent on friendly government decision and patronage, would lose out.

The MCA, too, has asked the SUPP not to accept any government posts. The Sarawak political development poses a serious paradox for the larger and economically-vibrant Chinese community in the country.

While the Malays, Chinese and Indians – in different capacities and numbers – voted for the Pakatan Rakyat in the 2008 political tsunami and gave the Barisan Nasional its biggest setback since the 1969 disturbances, three years on, the political mood is decidedly changing.

The political reality today is that while the Malays are with Umno and the Indian voters are gradually returning to the Barisan fold, the Chinese voters, who form about 25% of the electorate of about 14 million, are holding out and throwing their weight behind the Opposition DAP.

Their vote is really for a fair and just governance and for equal treatment of all citizens. They have long searched for and demanded equality and meritocracy. These ideals continuously move the Chinese community and are reasons why they back the DAP despite its alliance with the Islamic PAS or the scandal-ridden PKR.



Post 2008, the DAP emerged as the winner among the three Pakatan allies but the question remains; how much can it deliver on its own and outside of DAP-run Penang?

Arguably, the DAP has run the state well but the same cannot be said of Selangor, where the PKR-led government is at best rickety in comparison with Penang. The PAS-run state governments – Kelantan and Kedah – are in a world of their own.

For a new generation of trend-setting and upwardly mobile Chinese enjoying a world view dominated by meritocracy and business survival, the Barisan coalition is not transforming well enough or fast enough.

This perception is deep colouring their political choices and since the DAP has a showcase in Penang and makes the right noises, the party continues to get their support.

The fact remains, however, the DAP is king in a small pond. In the national sea, it is a backwater entity despite the sound and fury it generates.

Unless PAS and PKR also deliver (which did not clearly show in Sarawak), the voter support for the DAP alone will not get the Pakatan alliance into Putrajaya.

Instead, the support would fill the Opposition ranks everywhere with Chinese DAP representatives and, over the long haul, seriously mute the community’s voice in the government and limit their capacity to influence policies friendly to their business and economic needs.

With bumiputra birth rates far higher than others and with rural-urban migration ongoing, political power is gravitating to the rural elite.

Rural constituencies, where the Chinese population is thin, decide who ultimately wields political power, as the Sarawak vote shows.

Reversely the rural-urban migration is also diluting Chinese political power in the urban centres by eventually reducing the number of Chinese-majority constituencies in the country to a handful.

The process is irreversible, experts say, giving Penang as an example. The DAP-ruled Penang actually has a Malay-majority of about 170,000 as at July 2010.

Like in Sarawak, the Chinese community here might buy themselves a right to raise a ruckus by going the DAP way, but end up losing their share of government power and the right to determine how the national purse is deployed.

The fact is, the Chinese community cannot have it both ways.

Thursday, April 21, 2011

1Malaysia e-mail provider, Tricubes




1Malaysia e-mail accounts for Malaysians over 18

PUTRAJAYA: Malaysians aged 18 and above will be assigned an e-mail account each to receive statements, bills and notices from the Government.

Datuk Seri Najib Tun Razak, who announced this yesterday, said the 1MY E-mail initiative would allow “direct and secure” communication between citizens and the Government while enhancing the delivery of government services to consumers and businesses alike.

Tricubes Bhd is collaborating with Microsoft to develop the 1Malaysia E-mail project.

The company will spearhead the private RM50mil investment that also includes the development of a web portal as a one-stop centre for government services providing value-added services such as social networking, checking of bills online and payments.

Tricubes chief executive officer Khairun Zainal Mokhtar said the company was still conducting stress tests for the website.

“Hopefully, we can get it ready by July,” he told a press conference at the fifth progress update of the Economic Transformation Programme here yesterday.

Khairun said the portal was different from the MyEG website, which focused on the payment of bills and summonses, as it would allow interaction between people and the Government.

The Performance Management and Delivery Unit, responding to queries said the 1Malaysia E-mail would not be made compulsory.
Source : The Star

Tricubes to bank on govt project

By ERROL OH errol@thestar.com.my

Technology firm to tap on 1Malaysia Email for revenue

PETALING JAYA: Tricubes Bhd plans to generate revenue from the 1Malaysia Email project via advertising, an online marketplace, and the online delivery of government bills and notices.

The financially troubled technology company also sees income potential in facilitating government agencies' recruitment and registration processes.

These services will be available on the web portal that Tricubes is developing under the project. The portal's main feature is an email account, dubbed the MyEmail account, which will be offered to all Malaysians aged 18 and above for free.

In a media statement issued yesterday amid much scepticism about the project, Tricubes chief executive Khairun Zainal Mokhtar said: “With the decline of physical mail traffic, there is substantial growth in digital mail. Our base service will be the email services at no cost to users, while our revenue sources will come from the value-added services, which will be introduced in phases.” Such services include bill and notice presentment; job boards and online registration to government agencies that currently use electronic forms; advertising; and an online marketplace.

He added that by sending bills and notices digitally, the Government was expected to save up to 50% in postal and printing costs.


Interestingly, it has been reported that Tricubes was among those bidding for Khazanah Nasional Bhd's 32% stake in Pos Malaysia Bhd, although it is widely believed that it is no longer in the running.

In response to questions over the company's capacity to implement the project, given that it is a GN3 company (a Bursa Malaysia label for Ace Market companies that are in financial distress) and that the project is a private finance initiative (PFI), Khairun said the company had shown to the Government's evaluation team its ability to generate funding for the project.

Tricubes will be investing about RM50mil in the project over the next 10 years. He added: “Our initial investment is estimated to be RM5.3mil. This includes infrastructure costs for hardware and software, maintenance and raising awareness of the project. We have secured initial financing through a combination of internally generated funds and borrowings. We expect to reinvest revenue received from the project to ensure sustainability.”

Tricubes was classified as a GN3 company in October last year after its auditors had drawn attention to certain aspects of the company's financial affairs that may cast doubt on its ability to continue as a going concern. Another trigger was the fact that its shareholders' equity had sunk to less than half of its paid-up capital. Tricubes will be delisted if it fails to implement a regularisation plan within a specified timeframe.
“A GN3 company is allowed by Bursa Malaysia to continue carrying out its business activities. In order to remain listed, the GN3 company has to regularise its financial standing. Tricubes has achieved its first milestone in its regularisation plan set by Bursa Malaysia, with the appointment of its sponsor, M&A Securities Sdn Bhd in January 2011. The sponsor is expected to submit the company's regularisation plan to Bursa Malaysia and obtain its approval no later than Oct 29, 2011,” said Khairun.

On why the company had sunk into GN3 status, he explained: “Tricubes had invested heavily in research and development, which has a long gestation period, and is well on the way to generate returns to recoup its investment.”

He added that Tricubes was selected to handle the project because it had “a full suite of enterprise offerings as well as expertise in identity management”. He said: “We understand Tricubes' proposal met or surpassed the benchmarks set by the EPP (Entry Point Project) team. It also did not require any funding or financial guarantees from the government.” EPP is a term for a key initiative under the Economic Transformation Programme (ETP).

Yesterday, there was a jarring disconnect between public opinion and investor sentiments. Despite the outcry against the 1Malaysia Email project, Tricube's shares were among the top performers on Bursa Malaysia yesterday.

The penny stock recorded the fourth largest percentage gain on the exchange after ending trading at 16 sen, up 6.5 sen or 68% from Tuesday's close. It was also the 18th most active counter, with 11.7 million shares changing hands.

Before this, the last time Tricubes had closed at 16 sen or more was in July 2007. In the last six month, the stock's average price and daily volume were 5.7 sen and 161,444 shares.

It appears that investors were responding to the fact that the project had been among the seven new ETP initiatives unveiled by Prime Minister Datuk Seri Najib Tun Razak on Tuesday.

According to the Government, the project is an initiative to provide a “unique and official email account and ID for Malaysian citizens”. It added: “The web portal will serve as a one-stop centre for government services, providing value-added services such as social networking, online bill checking and payment as well as web development toolkits for citizens and businesses organisations to creatively develop applications.”

In fact, Tricubes had already announced on April 4 that it had been awarded the project. However, there was little market reaction then, probably because the Ace Market company had not provided other details.

The ETP update on Tuesday had an impact on Tricubes in more ways than one. The public's response to the project was in stark contrast to the stock market's bullishness. There was plenty of buzz in cyberspace, most of it critical and wary of the project.

Tricubes: 1Malaysia E-mail ensures secure communication




KUALA LUMPUR: The 1Malaysia E-mail is meant for Malaysians to receive “sensitive personal information” without compromising security, Tricubes Bhd chief executive officer Khairun Zainal Mokhtar said.

Asked why anyone would need a specific e-mail to communicate with the Government, he said: “Users will be receiving sensitive personal information contained in their income tax returns, Employee Provident Fund statements, notices of summons and driving licence renewals as well as quit rent payments.

“The e-mail, which includes a MyKad-based authentication service layer, ensures that government notices reach the correct recipients and reduces incidence of compromised personal information.”
In a statement yesterday, Khairun said the e-mail was private and not monitored by the Government.
“MyEmail will provide you with the option to enhance the security of your entire session with data encryption.

“Tricubes and Microsoft are working closely to make sure the integrity and confidentiality of the users are ensured.”

Khairun said the venture would generate revenue through value-added services such as advertising, online marketplace, bill and notice presentment.

The company will invest almost RM50mil over the next 10 years with an initial investment of around RM5.3mil.

Wednesday, April 20, 2011

Corruption: The biggest threat to developing economies

By Geoff Colvin, senior editor at large
 



FORTUNE -- "We're thinking of pulling out of Brazil," the CEO of a large American corporation told me a week ago. The company has been operating there for a few years, doing several million dollars of business. The problem? A series of court judgments so inexplicable, and so crushingly expensive, that the CEO doubts his ability to manage the business. He doesn't see how the rulings can be honest -- even former President Luiz Lula da Silva called Brazil's judiciary a "black box" that's "untouchable" -- and if the system doesn't work, this CEO is bailing out.



This is corruption, a problem we'd rather not think about that now threatens the ascension of developing countries into the top tier of world economies. Given its history, optimism on the subject would be foolish. But while the media and Wall Street focus on more tractable issues like inflation and exchange rates, world leaders seem perfectly clear on the greatest threat to the future of the BRICs and other emerging economies. Corruption is the "biggest threat to China," Premier Wen Jiabao told the National People's Congress in March. When U.S. Vice President Joe Biden visited Russia recently, he cited corruption as the No. 1 impediment to better economic relations and pointedly mentioned Sergei Magnitsky, a lawyer who died in custody in 2009 after accusing the police of corruption.

The Rakyat knows the truth:


Selepas Tsunami (After the Tsunami) from Pusat KOMAS on Vimeo.

http://www.africaeconomicanalysis.org/articles/gen/corruptiondikehtm.html
A warning to us in Malaysia!

The problem is not just the petty palm greasing that's common worldwide, though that has its own corrosive effects. Developing-market corruption has reached staggering dimensions. India's telecom ministry apparently siphoned $30 billion from various projects over the past few years. A Russian activist posted online documents apparently showing a $4 billion fraud in a state-run company's trans-Siberian pipeline project. In China a minister overseeing the new high-speed-rail network is accused of skimming $152 million (and maintaining 18 mistresses). The threat is broader than it may seem: Corruption discourages the investments needed for economic progress. In India "high-level corruption and scams are now threatening to derail the country's credibility and [its] economic boom," says a report from KPMG.

The societal effects are subtler and arguably worse. Initiative and ambition shrivel: Why try hard when effort isn't the source of success? Respect for authority evaporates. Anger and resentment build, especially as a society becomes richer and the gulf between ordinary citizens and the officially tolerated crooks grows wider. When Premier Wen declared corruption the biggest threat to China, he wasn't talking about its effect on foreign investors; he's worried about "social stability." He knows that while massive corruption isn't the only grievance of the revolutionaries in North Africa and the Middle East, it's a big one.

Many people shrug at corruption because they figure it's eternal and incurable. Not so. England was deeply corrupt in the 17th century, Sweden in the 19th, notes professor Michael Johnston of Colgate University, a corruption expert. Singapore and Hong Kong virtually eradicated corruption in a generation. Still, reform is extraordinarily hard, he says, especially in big economies where "huge stakes are on the table." Reform "can degenerate into political payback" by the reformers. Where to begin? "One of the best predictors of whether a society will do well on corruption is the strength of property rights," Johnston says. "That's not a bad place to start."

An insidious feature of corruption is that it's hard to talk about. I can't identify the CEO who's thinking of leaving Brazil because doing so could imperil his company's ability to operate there. More generally, accusing people in power is inherently dangerous. Graft operates in the dark. So, like the man looking for his keys under a lamppost not because he lost them there but because the light is better, we focus on economic issues that are rich with statistics and susceptible to math. But we're missing a giant danger. It's naive to think the recent official attention to corruption will amount to much. If it doesn't, the progress of the emerging economies could turn ugly.  To top of page

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