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Sunday, March 25, 2012

Politics, Religion don't mix!

In U.S., a growing unease at mixing politics with prayer
By Stephanie Simon

REUTERS - Americans are increasingly uneasy with the mingling of religion and politics, according to a poll released Wednesday by the Pew Research Center, in the midst of a campaign season punctuated by tussles over the role of faith in the public square.

Back in 2001, when Pew first asked the question, just 12 percent of Americans complained that their politicians talked too much about religion.

That number has risen steadily ever since and hit a record high in the new poll: 38 percent of Americans, including 24 percent of Republicans, now say their political leaders are overdoing it with their expressions of faith and prayer.

And more Americans than ever, 54 percent, believe churches should keep out of politics. That's up from 43 percent in 1996, according to the Pew Research Center.

The national poll of 1,503 adults, which has a margin of error of 3 percentage points, was conducted in early March, as the U.S. Conference of Catholic Bishops was ramping up its vigorous campaign against a new federal mandate requiring all insurance companies to provide free birth control.

The bishops continue to press that fight. Just last week, they issued a statement declaring they were "strongly unified and intensely focused" on battling the contraception mandate.

A leading voice in that campaign, Bishop William E. Lori of Bridgeport, Connecticut, this week was promoted to Archbishop of Baltimore by Pope Benedict XVI.

Peter Steinfels, co-director of the Center on Religion and Culture at Fordham University, said Americans have generally tolerated and even encouraged religious leaders to speak out on broad political issues, including capital punishment, immigration and poverty.

MORE SKEPTICAL

But Americans have long been uncomfortable with religious leaders directly involved in partisan campaigns, he said.

In recent years, most notably in the birth control battle, that line has been blurred, Steinfels said - which may account for the growing unease on display in the Pew poll.

"Religious leaders ought to be worried," Steinfels said. "We're seeing Americans becoming more skeptical" about the propriety of religious involvement in politics.

The bishops have sought to portray the contraceptive mandate as one prong of a broad attack on religion by state and federal authorities. The leading Republican presidential candidates have echoed that rhetoric on the campaign trail, accusing the Obama Administration of declaring war on religious freedom.

The Pew poll found evidence that argument is resonating with Catholics. Roughly one in four U.S. voters is Catholic and they are a crucial swing vote in several states pivotal to the 2012 presidential election, like Ohio, Michigan and Pennsylvania.

The poll found 25 percent of Catholics perceive the Obama administration as unfriendly to religion, up from 15 percent in a Pew poll taken in August of 2009.

The increase is even sharper among white Catholics, jumping to 31 percent from 17 percent, Pew found.
Among the public overall, 23 percent describe the Obama administration as unfriendly to religion, up from 17 percent in 2009. But another recent poll suggests the "war on religion" argument isn't gaining traction with most adults.

A national survey conducted this month by the Public Religion Research Institute found a majority of Americans, 56 percent, do not believe religious liberty is under siege.

Republicans, senior citizens and white evangelicals were most likely to see a looming threat to religious freedom.

(Reporting By Stephanie Simon; editing by Marilyn W. Thompson and Todd Eastham) 

Malaysian politicians return of the silly season?

 The happening days are back in Malaysian politics but the seasoned ordinary Malaysians are not even batting an eyelid.

IT’S dubbed the silly season by the media and for good reasons. In the months ahead of the general election, politicians will say the silliest things as both sides of the divide fire at each other. Often, the media get caught in the crossfire.

Many see agenda when there is none, presumably because as politicians they are used to the murky world of self-interest and plots.

Unsure of whether they will get re-elected, or worse, dropped as candidates, many are understandably jittery and overly-sensitive as the pressure builds up. After all, much is at stake.

Wanting to get the attention of their party bosses, they start bombarding media offices with tons of press releases, many of which are hardly newsworthy.

The political minnows are unlikely to get their news across and that’s when news organisations are accused of sidelining them for purported political motives.

Then there are rural-based politicians who wonder why they do not get any coverage at all. They insist on the presence of the press even when most of the newspapers do not reach their constituencies, let alone read by the voters there.

There are politicians who blame everyone for their failings except themselves. Again, their critics and the media get the blame.

There’s another group of has-been politicians. They have held positions including Cabinet posts for what feels like forever but never seem to be able to fade away. They still refuse to find time to play with their grandchildren.

So, come election time, they will find a way to get some publicity, including trying to seek a seat to contest or to quit their party.

Retirement age, it would seem, is only for the ordinary citizens, not for politicians. We have got two generations contesting in polls. We have father-son teams, a husband-wife-daughter team, and with Malaysians increasingly living longer, we may end up having their grandchildren as fellow candidates too.

By now, Malaysians are used to the saying that there are no permanent friends and enemies in politics. So, last week, former Selangor PAS leader Datuk Dr Hasan Ali was accused of spending lavishly during his tenure in the state government, including “wasting” RM300,000 to renovate his office.

The allegation was made by PKR’s Azmin Ali, the Gombak Setia assemblyman, who also said more than RM500,000 was spent on a conference organised by the Selangor Malay Customs and Heritage Corporation.

Barisan Nasional rightly asked why Azmin was only making this revelation after Dr Hasan had left PAS and Pakatan Rakyat.

But politicians always have an answer for every question, no matter how illogical it sounds. Azmin replied that he only received the evidence recently and had asked PAS to probe the matter even before Dr Hasan was sacked.

The state executive councillors are located on the same floor at the state government’s office and no one is going to believe that no one knew renovations were being carried out in Dr Hasan’s office. It’s the same with the purported expensive conference.

Surely, there must have been meetings on the budget allocated for the conference and it is difficult to accept that no one knew about the allocated sum.

Barisan state assemblymen have rightly asked whether these would be exposed if Dr Hasan had remained in PAS and had not rebelled against the state government.

Dr Hasan, in any case, was supported and campaigned for by the same Pakatan leaders in the 2008 elections. The same people who criticised him now are the same people who had heaped praises on him then, persuading people to vote for him.

It’s never a dull day in Malaysian politics – on some days it is amazingly incredible – but at the same time, Malaysians are not getting surprised any more.

Saturday, March 24, 2012

Malaysian banks tighten the screening of loans

THE local property sector is expected to see some “cooling down” in the number of transactions this year following the implementation of the responsible lending guidelines by Bank Negara on Jan 1.

According to Real Estate and Housing Developers Association (Rehda) president Datuk Seri Michael Yam, transactions are now taking a longer time to crystallise as banks are grappling with more data required for processing loan applications.

Yam says transactions are taking a longer time to crystallise.

“Buyers are also not committing to purchases until they get clearance from banks that they will be offered the loan applied for, which may or may not be sufficient for them to purchase the property they desire.

“The first segment to be affected is obviously the residential component. For the non-residential, especially commercial properties which may be bought by companies or partnerships, we understand the new formula is not applicable,” he tells StarBizWeek.

Yam feels that the new ruling will have a huge impact on the middle-income segment.

“However, it is common for this group to actually have double (or even) triple incomes from their second and third jobs, but may not have documents to support higher loan eligibility. While prudent risk
management is good, financial institutions must also play a facilitative role in the home ownership agenda by assessing each application on its own merit and not blanket applications across the board.”

He adds that the affordable housing segment will probably be the most affected segment as borrowers are likely to be less affluent, with lower income and disproportionately higher expenditure.

“We predict headwinds for sales in this critical segment, which is contradictory to the wish of the Government to encourage home ownership,” Yam says.

Chang says the entry level market will be the most affected.
In light of this situation, Federation of Malaysian Consumers Association (Fomca) chief executive officer Datuk Paul Selvaraj is urging the central bank to perhaps ease the loan application process, such as making it easier for consumers to switch banks if necessary.

“Consumers, if they feel that they can get a better deal with another bank for their housing or car loan, should be able to do so with ease and at minimum costs. Consumers often feel overwhelmed at the procedures for changing banks. The process should be simplified. The ease of bank switching would promote better quality of services from the banks through competition.

“There should be greater emphasis not only on policy measures but on financial education. Not enough is being done to provide appropriate financial knowledge and skills to consumers,” he says.

One industry observer concurred that the responsible lending guidelines will have the biggest impact on the lower income group.

“This group of people are already earning a low salary and with stricter lending rules, getting loans could be made more difficult.”

National Housebuyers Association (HBA) secretary-general Chang Kim Loong says the responsible lending guidelines will have an impact on the local property sector, especially in the entry level market where aspiring job seekers purchase their first home and for married couples hoping to be able to purchase or upgrade their homes.

Selvaraj urges the central bank to ease the loan application process.
“Depending on location and from state to state, the price ranges from RM150,000 to RM500,000. This is the price range that speculators have been targeting in the past and have artificially inflated such property prices, but it's still too early to gauge the effectiveness or effects of the responsible lending guidelines.

“It is hoped that as property speculators are denied financing to purchase such homes and with only real demand in the picture, the prices of such properties will gradually decline to more realistic prices.”

According to reports, applications for loans for the purpose of purchasing residential properties contracted 6.3% in January from a growth of 11.3% in December 2011.

Yam says Rehda understands that the implementation of the rationale for responsible lending guidelines was due to the large household debts and the 40% increase in transaction value (from RM100bil to RM140bil) between 2010 and 2011.

“On the short to medium term, this restriction would ultimately cause a slowdown in borrowing which is the intended effect, and it will cause a negative effect on home ownership.

“The mixed signal arising from this new lending rule is that while on the one hand the Government is encouraging the building of more affordable medium-cost housing by introducing “My First Home Scheme” and “PR1MA” homes to stimulate demand, on the other we have this Bank Negara announcement,” he says.

Yam feels that the central bank's new lending criteria seems to be in contradiction to the earlier Budget announcement in October last year.

“This does not sit well with developers who are taking the cue and feel positive about home-buyers being offered greater opportunity and various incentives to own homes only to be somewhat dampened by this new requirement,” he says.

Positive measure?

Khong & Jaafar Sdn Bhd managing director Elvin Fernandez says he is supportive of Bank Negara's responsible lending guidelines.

“The new rulings are good because they are pre-emptive measures to prevent a housing bubble. The measures are making themselves felt as price increases in some hot spots that were a cause for concern have now stalled and also the trend from it spreading down the line or to other areas have also been curtailed.

Fernandez supports the guidelines as they prevent a housing bubble.
“House prices rising are not good. Prices rising with fundamentals such as household income and rental returns are good,” he says.

Chang also applauds Bank Negara's responsible lending guidelines.

“The guideline requires the financial services providers (FSPs) to provide assessment of individual affordability and provide suitable and responsible advice to customers on their capacity to take on additional financing,” he says.

According to Chang, the FSPs or banks will be required to undertake a comprehensive assessment on borrowers' sources of income and verify against independent sources to ensure that they have the ability to repay the loans throughout the tenure of the loan.

Income assessment shall be based on the borrowers' net income, which is the gross salary minus the statutory deductions such as Employees Provident Fund contributions and tax deductions.

“HBA has been advocating for a very long time for FSPs to exercise prudence and good judgment when disbursing loans. Due to stiff competition and key performance indicators set by the board and senior management, (FSPs) have been too lenient and aggressive in providing financing, resulting in artificially inflated property prices and many young adults being declared bankrupt due to their inability to repay their debt obligations,” says Chang.

Chang says that as part of the responsible lending guidelines, Bank Negara has repealed its requirement of a maximum debt service ratio (DSR). For the uninitiated, the DSR means that the debt repayments are divided by the borrower's income.

According to him, prior to the responsible lending guidelines, the maximum DSR was set at one-third (or 33%) of gross income for single loan repayments and half (or 50%) of gross income for all loan repayments combined.

The exception was given to civil servants who could borrow from the cooperatives with a DSR of up to 60% of their gross income.
“Hence, if the borrower's gross income is RM3,000, the maximum single loan repayment is RM990 and maximum aggregate of all loan repayments cannot exceed RM1,500 per month,” Chang says.

Under the responsible lending guidelines, the DSR based on gross income has been repealed and FSPs are now free to set their own DSR based on the net income of the borrower.

Chang says the issue now will be that prospective borrowers do not know if they would qualify for a loan as different FSPs have different DSR guidelines.

“There is a shock-effect with FSPs being told to totally disregard all forms of variable income such as discretionary bonuses, commissions and overtime and prospective borrowers that are dependent on these types of income are adversely affected.

“Based on our market sources, some FSPs are willing to consider these types of income but at a discounted rate and this causes great confusion to prospective borrowers as they attempt to shop around for loans,” he says.

Rehda feels the affordable housing segment will probably be the most affected.
 
Chang says HBA is urging the central bank to retain its “maximum DSR” requirement “to set a cap” as guidance for FSPs to follow.

“As it is, even with the previous guidelines on one-third and half, many FSPs have openly flouted the guidelines with reckless financing, resulting in artificially-inflated property prices and many young adults being declared bankrupt due to unmanageable debt levels.

“With the caps removed and FSPs being free to set their own lending policies, the situation of reckless financing may get even worse. Although HBA agrees that market forces are the best form of regulation, it has been shown that we operate in an imperfect market and hence the need to retain DSR limits for FSPs to follow,” he says.

As a means to improve lending, the HBA is also calling on the central bank to issue additional guidelines on the recognition of variable income, where the borrower can show a good track record for such income.

“This is because certain industries such as in the sales and manufacturing sectors, the basic income is often very low and the discretionary income serves as an incentive for employees to perform.

“If such discretionary income is to be totally disregarded, it is feared that such employees may never qualify for any sort of loan from legal channels and end up resorting to loan sharks.”

By EUGENE MAHALINGAM eugenicz@thestar.com.my

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