Malaysia's healthcare system is one of the best in the world

 Country is third best and practioners 'equal to or better than most Western countries'

PETALING JAYA: The country’s achievement at being rated third best in the world for healthcare services is something to be proud of, said Health Minister Datuk Seri Dr S. Subramaniam.

He also gave credit to the boom in the country’s medical tourism sector through strategic investments on good medical facilities and competitive rates compared to other parts of the world.

“Medical tourism has benefited the Government in terms of foreign direct investments and also spin-off effects in the hotel and shopping sectors,” he said yesterday.

The Star Online reported yesterday that a study by the American publication International Living rated Malaysia’s healthcare system as the third best out of 24 countries in its 2014 Global Retirement Index, beating Spain, Italy, Ireland and New Zealand, among other countries.

The index, which was recently released by the Baltimore-based magazine, praised Malaysia’s healthcare, which scored 95 out of a possible 100 points, as the medical expertise of Malaysian healthcare practitioners is “equal to or better than what it is in most Western countries”, according to InternationalLiving.com’s Asia correspondent Keith Hockton.

The top two countries, France and Uruguay, scored 97 and 96 points, respectively.

On the methodology of the index’s ratings, the magazine said both the cost and quality of healthcare were evaluated.

Another report in International Medical Travel Journal News reported that medical tourism receipts in Malaysia from foreign patients totalled RM509.77mil in 2011 involving 578,403 patients.

Dr Subramaniam added that Malaysia remained competitive with players like Singapore and Thailand and the focus was to consolidate the country’s position.

He said the key towards improving the overall healthcare sector would be to focus on the preventive and primary healthcare divisions.

Malaysia Medical Association (MMA) president Datuk Dr N.K.S Tharmaseelan also acknowledged the findings, saying that the country has one of the best healthcare systems in the world.

“The Health Ministry has become a massive seamless service provider in healthcare that has produced magnificent results over the years. Our statistics prove it,” he said, adding that this was despite general practitioners being the lowest paid in the world with their fees being regulated.

He added that impressive figures such as life expectancy for women reaching 80 years and about 72 years for men were reflective of the excellent healthcare provided by the ministry and the private sector.

By G. Surach The Star/Asia News Network

Malaysian Central Bank raises defence; weak currency

 

Malaysia banks told to set minimum CA ratio at 1.2% of total loans

PETALING JAYA: Banks have been told to have a minimum collective assessment (CA) ratio of 1.2% by the end of next year, sending a strong signal to the industry to improve its standards of prudence.

According to a circular from Bank Negara to financial institutions early last week, all banks are required to set aside a minimum of 1.2% of total loans effective Dec 31, 2015.

The requirement, effectively, will put a stop to the present situation where banks are left to set aside their CA ratio based on their own risk assessment of their asset profile.

“Most banks have maintained a CA ratio of lower than 1.2% because there is no minimum set by Bank Negara. This circular effectively sets the standard for a minimum requirement,” said a banker.

The CA ratio was previously known as the general provisions that all banks were required to adopt. The general provisions requirement was a minimum of 1.5% of total loans, a ratio set by the central bank.

However, after the introduction of the new accounting standards three years ago, the general provisions requirement was replaced with a CA ratio, with banks free to set their own ratio.

The central bank no longer set the minimum requirement for banks to comply with in regards to the provisions.

According to a research report by CIMB, banks that had a CA ratio of less than 1.2% as of September last year were Malayan Banking Bhd, Public Bank Bhd, Affin Bank Bhd and Alliance Bank Malaysia Bhd.

Bankers, when contacted, were divided on the impact that the requirement would have on their bottom lines.

According to one banker, the move to comply with the ruling will not impact profitability because the additional amount required to be set aside can be transferred from retained earnings.

“Funds out of retained earnings will not impact the profit and loss (P&L) account of banks. It’s not a P&L item,” he said.

However, it would affect the dividend payout ability of banks, added the banker.

Another banker said the financial institution was seeking clarification from Bank Negara on whether to set aside the provisions from its profits.

“If that were the case, then it would impact profitability,” said the banker.

OCBC Bank (M) Bhd country chief risk officer Choo Yee Kwan said the background to the new requirement was that Bank Negara wanted to ensure that impairment provisions could keep pace with strong credit growth.

“In addition, the regulator would like to promote consistency in practices in ensuring adequate rigour and data quality in arriving at the appropriate level of collective impairment and the factors that are considered by banking institutions.

“Adequate impairment provisions serve as necessary buffers against potential credit losses; hence, they can reduce the likelihood of systemic risk for the banking sector,” he said in an e-mail response to StarBiz.

He said the sector might witness an increase in the overall level of impairment provisions at the industry level.

“Nevertheless, this should be seen positively, as the higher credit buffers would now render the sector stronger,” he noted.

CIMB Research in a report stated that the proposed new guideline could have a negative impact on banks based on its theoretical analysis.

It pointed out that several banks would have to increase their CA provisions under the new ruling and this would lead to a rise in the banks’ overall credit costs.

“Those which do not meet the requirements would have to increase their CA (and ultimately credit cost) in 2014-2015, even if their asset quality is improving. For banks with a CA ratio of above 1.2%, the new ruling would limit the room for them to further reduce their CA ratios,” CIMB Research explained.

According to CIMB Research’s estimates, banks’ net profits could be lowered by around 0.5% (for Hong Leong Bank Bhd) to 11% (for Public Bank) in 2014 to 2015 if a minimum requirement of 1.2% for the CA ratio were implemented.

Another analyst, however, is of the view that the new requirement from Bank Negara would have a negligible impact on the operations and earnings of banks.

“We think it is not a major concern for most banks because, firstly, the grace period for the implementation of the new guideline is long. Secondly, the minimum ratio of 1.2% will not comprise of only the CA component alone, but is also a combination of the CA and the statutory or regulatory reserve.

“In general, we see the new guideline as a measure to standardise the way banks gauged their capital buffers.
“The bottom line is, we think the new guideline will only serve to further strengthen banks’ capital buffers,” the analyst added.

By Cecilia Kok and Daljit Dhesi StarBiz, Asia News Network

Silver lining in weak currency

Weaker currencies are a boon for Malaysia and Indonesia, helping to tip the balance of trade back in their favour, as exporters benefit from rising demand for goods and commodities from advanced economies, coupled with steady growth in China.

The favourable trade surplus, economists said, would ease the pressure on these emerging countries’ deteriorating external accounts, which is a major sore point for foreign investors.

They added that rising exports would provide the much-needed tailwind for Asian economies to sustain growth even as domestic demand moderated.

Malaysia on Friday reported a 2.4% growth in exports in 2013, backed by a 14.4% jump in December that exceeded the market’s expectation by a wide margin.

“We still maintain our long-term view of impending growth momentum in the coming quarters,” Alliance Research economists Manokaran Mottain and Khairul Anwar Md Nor said in a report.

They predicted exports in 2014 to grow at a faster pace of 5%, backed by steady but improving export demand from advanced economies.

While imports grew at a faster pace than exports in 2013, Malaysia continued to enjoy a strong trade surplus.

The favourable trade surplus combined with an anticipated smaller services deficit and transfer outflows would translate into a larger current account surplus of RM16.7bil or 6.6% of gross domestic product (GDP) in the last quarter of 2013.

“The cumulative current account surplus is estimated to reach RM37.8bil or 3.9% of GDP in 2013, helping to assuage fears of a current account deficit,’’ CIMB Research economist Lee Heng Guie said.

This, he said, was positive for the ringgit and the capital market.

The ringgit, along with other emerging Asian currencies, have been under pressure since June last year after the US Federal Reserve began talking and later started to reduce its quantitative easing (QE).

The US Fed first pared its monthly bond purchases programme from the original US$85 billion a month to $75 billion in January. This was cut further by $10 billion starting from February.

“Capital outflows from emerging markets are likely to continue in the months ahead as the Federal Reserve winds down its QE3 programme,” said Macquarie Bank Ltd’s Singapore-based head of strategy for fixed income and currencies Nizam Idris.

Fears about the US Fed tapering down the supply of cheap money to the market first surfaced in May last year and it triggered a huge sell-off on emerging market assets.

Countries such as Indonesia and India had seen their currencies depreciate the most in 2013, Both economies had wide current account deficits.

Last year, the Indian rupee plummeted the most in two decades, while rupiah depreciated by about 20% against the US dollar over the past 12 months.

Not helping emerging market currencies is the recovery in advanced economies, such as a rebound in economic growth in the US which rose by 3.2% in the fourth quarter of last year.

But if economic recovery in the US and eurozone were to stay on course, so would demand for cheaper emerging market exports. This, in turn, would help shrink the huge current account deficits that had hobbled countries such as Indonesia, India and Turkey.

For many emerging economies, 2014 had gotten off to a grim start.

Concern over the Chinese economy’s marked slowdown and the Argentine peso’s steep slide in January has brought upon renewed pressure on the currency market.

But the current market volatility does not portend weaker growth.

CIMB Research in Indonesia observed that the strains in the financial markets did not translate into a significant slowdown in the economy as the country’s real GDP growth accelerated to 5.7% in the last quarter of 2013.

Its exports surged in December, while imports slowed on the weaker rupiah. This helped to widen its trade surplus to $1.52 billion, the largest since November 2011.

The favourable trade numbers narrowed its current account deficit of $4.06 billion.

CIMB Research expects growth in Indonesia “to trough” in the first half of 2014 as the lagged effect of the rupiah depreciation and Bank Indonesia’s aggressive policy-tightening cycle in June-November 2013 works through the economy.

“Pre-election bounce in consumption should offset the weakness, allowing Indonesia to post 5.6% GDP growth in 2014,’’ it said.

Malaysia, too, is on track for sustained growth. CIMB Research projected GDP growth in the third quarter would probably expand by 5.3%, taking the full year growth rate to 4.7% for 2013. - The Star/ANN

Related posts:

1.  Asian central banks fix the mess created by their governments 

2.  Southeast Asia's Boom Is a Bubble-Driven Illusion?

Education woes in Malaysia, etc, act now to address the weaknesses!

Policies have been formulated to improve and facilitate teaching and learning at all levels, yet there are weaknesses in the system that need to be urgently addressed.

THE dismal performance of our students in the Programme for International Student Assessment (Pisa) in 2013, where 51.8 % of our 15-year old students failed to reach even the baseline level for Reading, Mathematics and Science, has rightly alarmed many concerned Malaysian parents and educationists.

It bears repeating that the quality of an education system simply cannot exceed the quality of its teachers, no matter how many billions of ringgit is used in educational development plans or blueprints to improve our school system.

Prominent lawyer, politician, columnist and author Datuk Zaid Ibrahim, could well be expressing the sentiments felt by many informed Malaysians when he wrote in his book I, Too, Am Malay, that many teachers, are “poor in quality” and the school curriculum is irrelevant while administrators are too political.

The fact that 70% of our English teachers failed to make the grade in the Cambridge Placement Test speaks volumes of why and how we continue to witness a decline in English proficiency in our schools and universities over the years.

If it is true that a large number of our teachers are incompetent, then policy-makers will have to get the views of all the major stakeholders, accept sound suggestions from various quarters, before they attempt to tinker with our school system.

M. Bakri Musa, columnist and author in his book An Education System Worthy of Malaysia, mentioned the greatest weakness of all our educational reforms is the government’s exclusive dependence on in-house or Education Ministry officers, who have somehow failed to improve the quality of our education system over the years, in spite of all their grand schemes.

Let’s review how effective, practical or meaningful the educational reforms have been at school level.

Motivating students

When the co-curricular points system was first implemented in our schools, it seemed like a good way to motivate our students to participate more actively in sports clubs and societies to make them well-rounded students.

In the first place, the system was never implemented in good faith.

Students sitting for the Sijil Tinggi Persekolahan Malaysia (STPM) exams face a serious handicap when it comes to applying for admission to local universities for some degree courses compared to Matriculation students, who study for a shorter period of time and sit for their relatively easy internally-marked exam papers.

And as if things are not bad enough for STPM students, it looks like the co-curricular points system was designed to make university admission even easier for Matriculation students. The system enables them to secure high marks for co-curricular activities which account for 10% of the entry-score requirement for public university admission.

In matriculation colleges, students who participate in co-curricular activities among hostel block members are awarded marks meant for district level events, while students who compete in activities in college are awarded marks that are equivalent to state level grades. When students compete in inter-college events, they are accorded marks equivalent to that of national level!

Any wonder why so many SPM students choose not to do their Form Six?

The system is biased as it favours Matricu-lation students over STPM students. Moreover the chances of STPM students who score 4As getting courses of their choice at varsity level is also uncertain.

Considering the circumstances, many bright students simply don’t want to continue with Form Six.
Why experience the mental agony of getting 4As in the STPM exams only to be denied places for courses like medicine and pharmacy?

Let me reiterate that the STPM is a tougher exam and the co-curricular point system for matriculation students gives the latter an unfair advantage.

Research suggests that superior learning takes place when classroom experiences are enjoyable and relevant to students’ lives, interest and experiences.

As such, it is rather unfortunate that at a time when our education system is already failing to provide students with appropriate problem solving, critical and analytical skills and knowledge content, especially in Science and Mathematics, our policy-makers see it fit to make all students take up History (now made a compulsory subject to pass in the SPM exam).

Instead of learning world history and exposing our students to lessons we can learn from major historical events, much of our Form Four History textbooks are devoted to specific topics all in the name of promoting patriotism and national unity.

And why bother to introduce the SPM open certification exam in the first place when we have no real intention to offer our students real flexibility in their choice of subjects and electives based on their interests, abilities and aptitudes?

In his best seller, The World is Flat, Thomas L Friedman, points out that in today’s world, how children are educated may prove to be more important than how much they have to learn in school.

If what he says is true, why should we stifle our students’ initiative, curiosity and creativity by burdening them with uninspiring and even unnecessary subjects that have made school life such a dreadful and boring affair.

And yet, despite repeated calls to scrap Moral Education, such pleas have fallen on deaf ears. It has been pointed out that Moral Education, instead of exploring how we can effectively teach and test moral reasoning, only serves to indoctrinate our students and subjects them to mindless memorisation of core values.

To make things worse, our policy-makers decided that learning Moral Education was not good enough; in order to make our students more civic-conscious and patriotic, they went on to introduce yet another subject called “Civics and Citizenship” for our secondary school students from Form One in 2005.

Holistic development

Our national education philosophy emphasises holistic development of our students. That being the case, won’t Physical Education (PE) play an important role in producing physically fit and well-rounded students?

And yet with our students experiencing so much stress in their school life, they have to make do with just two periods for PE!

If that is not bad enough, some schools even use PE periods to teach “more important subjects” like Health Education. And what about our school-based assessment?

Various quarters have already pointed out that simply scrapping the Ujian Pencapaian Sekolah Rendah (UPSR) and Penilaian Menengah Rendah (PMR) exams to introduce the current school-based system may not necessarily serve to enhance learning and make school life more enjoyable for students.

When the school-based assessment system was introduced to schools in 2011, it was assumed that teachers would be able to assess their students’ abilities and potential.

But with so many “poor quality” teachers it will not be fair to assume that they are sufficiently equipped to evaluate their students based on internally-prepared assessments, that they take pains to assess their students properly, and that they are unbiased towards their students.

Well, that’s really a tall order. Already, we have heard stories from schools of incompetent and indifferent teachers teaching weak classes and yet awarding their students Band Six, no less, in their respective subjects!

And as usual, many schools are already resorting to buying workbooks in the market instead of getting their teachers to come up with their own worksheets and materials to assess their students, making a mockery of introducing the school-based assessment in the first place.

But we can’t blame the teachers, not when they are burdened with so much paperwork and keying data online into the SPPBS (Sistem Pengurusan Pentaksiran Berasaskan Sekolah).

It is worth noting that our current school-based assessment at the end of the day, is not much different to the A-B-C-D-E grade system or even the Percentage Score system. So why should teachers need to waste time with the banding exercise when in their daily dealings they can easily discern the band(s) the students actually deserve for the topics taught?

Wouldn’t it be better to reflect on their teaching approaches and enhance their professional knowledge, rather than waste time with paperwork and keying data?

It is about time to address the problems facing our education system.

For a start, the government should really grant greater autonomy to good schools in both urban and rural areas to adopt a broad-based curriculum, save for a few core subjects under the supervision of the Education Ministry, to let students learn what they ought to learn in today’s challenging world.

Get dynamic school principals to manage such schools and empower them to make decisions on matters related to school operations with the participation of parents and the local school communities.

If the principals are allowed to hire competent teaching staff, and be accountable for their performance, then we stand a better chance to improve our education system at the school level, specially when we are in a position to compare the performance of such autonomous schools with our national schools.

And with so many parents paying for tuition lessons these days, they would gladly pay school fees to get their children to study in such autonomous schools.

When such schools, gain a good reputation, the tuition syndrome will slowly die and more parents would choose to place their children in such schools rather than vernacular or international schools, resulting in a win-win situation!

With the current rot in the school system, the authorities should no longer be so protective over their turf. They must have the courage to admit the serious shortcomings of their policies and display greater commitment to think out of the box. It is now in the hands of the ministry to make it all happen.


 Contributed by Henry Soon - The Star/Asia News Network

The writer, a retired teacher, is still passionate about education. He hopes the Education Ministry will be bold enough to bring about changes for the greater good of students, teachers and parents.

Related posts:
1.  Technologies: A question of talent in Malaysia
2. Malaysia, US, UK and Australia lag in global education rankings as China and Asian countries rise to the top
3. Rightways Technologies: Asian students dominate global exam; Are the Chinese ...

Related article:
China students shrug off US education woes