Interview (1/3): Wong Chen on anti-terrorism, sedition, bloc voting, missing MPs and more (Part 1 of 3)

 Q&A with Wong Chen, Parti Keadilan Rakyat Member of Parliament for Kelana Jaya, 11 April 2015. On Malaysian Parliament, 9 March – 9 April 2015 session - anti-terrorism, sedition, bloc voting, missing MPs and more (Part 1).

Q. What were the important events at the recently completed Parliamentary sitting?
 
The two biggest events were the tabling of the Prevention of Terrorism (POTA) bill and the amendments to the Sedition Act. There were 13 legislations presented for this sitting, 7 of which were related to POTA. POTA is a new legislation, so other existing legislations relating to criminal justice needed to be amended to sync with POTA. The 7 related bills included matters concerning criminal procedure, penal code and evidence.
 
POTA has provisions for detention without trial (renewable every two years) for an indefinite period. The amendments to the Sedition Act were intended to give extensive powers to the police and widen the definition of "seditious tendencies". If passed, these two bills will erode the rakyat’s already fragile and limited rights. Many worry that this points to the Najib administration becoming more authoritarian and less tolerant of criticisms.
 
Q. What do you mean if passed? Aren’t these laws passed after the two 12 hour sessions in Parliament?
 
Before a bill becomes an act there are two further stages. After Dewan Rakyat (the lower chamber of Parliament), a bill needs to go to the upper house or Dewan Negara. After that it needs the Agong's (ruler, the head of state) signature.
 
The upper house is majority controlled by the Najib’s appointees and if the ruler refuses to sign, it will become law irrespective after one month.
 
In terms of expected timing, these bills will become law within the month of April. Our fear is that these legislations may be used against the people for the May Day rally. It may even be used against Dr.Mahathir to stop his increasingly brazen questions about Najib.
 
Q. Can you highlight how these legislations were debated in Parliament? What did you do?
 
Since November last year, when UMNO-BN introduced the White Paper against ISIS, we knew that a legislation against terrorism will be prepared. However, not a single person from Pakatan Rakyat or the Bar Council was consulted on the drafting of the anti-terrorism bill. So, two weeks before the start of the recently concluded Parliament session, I asked my two researchers to start looking at the anti-terrorism legislations of Australia and the UK. They researched a pile of data and policy points. At the start, none of the MPs seemed interested except for Raja Bahrin of PAS.
 
On the first day of the Parliament session, I had breakfast with Raja Bahrin, MP for Kuala Terengganu. We usually breakfast together. There is only a handful of MPs that get to Parliament before 9.30 am. We talked about POTA and decided to do a few press conferences to alert the public. We started by alerting the public that MPs had yet to receive the draft bill.
 
The bill was finally put on table a week before debate. Since I was assigned by PKR to analyze the bill, my researchers worked harder crafting arguments for MPs to use. I also worked with Ooi Heng (the parliamentary researcher for PKR) and he arranged for a special briefing by the Bar Council, open to all Members of Parliament. Despite the open invitation, only Pakatan Rakyat MPs attended.
Around 20 MPs attended the briefing, which I co-chaired.
 
Thereafter, I called for a meeting of Pakatan MPs to attend a drafting session to put our alternative amendments to POTA. That was on Saturday 4 April 2015 in the PKR HQ. The YBs that attended the drafting were Sim Tze Tzin (PKR - Bayan Baru), William Leong (PKR-Selayang), Manivanan Gowin (PKR – Kapar), Hanipa Maidin (PAS –Sepang), Lim Lip Eng (DAP Segambut) and myself. My two researchers and Shao Loong of Institut Rakyat (the PKR think tank) also attended. I chaired and presented suggested amendments, William Leong and Hanipa gave a lot of feedback.
  
Saturday 4 April 2015 meeting on POTA bill (photo: Wong Chen)

YB Sim Tze Tzin then drafted and faxed our amendments to the Parliamentary secretariat. He has experience with such amendments. Our amendments were a tactical move to slow down proceedings and also force our version to be debated. We were hoping to slow down proceedings so to buy time for our MPs to try to “turn” some BN backbenchers. By submitting written amendments, BN backbenchers could then read our proposals and duly consider the issues. Throwing oral arguments across the floor will have limited impact compared to presenting a written document. We hoped some would support it instead of the Najib administration’s bill.
 
Q. So what did you propose?
 
We are not soft on terrorism. We wanted a law that balances the need to protect citizens from terrorism and at the same time upholds rule of law and justice.
 
So we looked at the UK and Australian models. They have been actual targets of terrorist attacks. They are on constant high alert. Yet their laws are grounded. In the interest of fighting terrorism, they forgo minimal civil liberties and adopted a pre-trial detention system. Their authorities have powers to detain a suspect. However the maximum detention time is only up to 14 days. Thereafter, they must either set him free or charge him in court. UK and Australia are prime targets of terrorist attacks, yet their MPs saw the need to protect democracy and find a practical solution to security threats.
 
We liked what UK and Australia did. Tough on terrorism but without sacrificing a whole lot of civil liberties. So we basically adopted their laws in our counter-proposal to Najib’s version. We proposed a similar 14 days pre-trial detention. In truth, I would have even gone beyond 14 days to 28 days, if BN had counter-proposed, which they didn’t. Anything would have been better than indefinite detention without trial.
 
 

Pakatan Rakyat’s amendments submitted for the POTA bill (photo: Wong Chen)

Q. What’s in Najib’s POTA bill?
 
The Najib administration proposed a system of detention without trial. POTA also allows normally inadmissible evidence, to be admissible. What does that mean? Hearsay or illegal confessions (however obtained) will be admissible in POTA. POTA also states that there will be no judicial review, whatsoever. Habeas corpus will not be allowed.
 
POTA has a Prevention of Terrorism Board, the bulk of the members do not have any pre-qualification requirements. The Chairman needs only 15 years experience in the legal field to qualify. This means that a banking lawyer of 15 years can lead the POTA Board! We asked for the Chairman to be at least a High Court Judge with experience in the criminal division. Our request was rejected. 
The Board also has powers to make up any rules or procedures whenever they like. There is also no oversight by Parliament, POTA only answers to the Home Minister and ultimately the Prime Minister who appointed him. But the biggest threat is the matter of indefinite detention without trial.
 
When a suspect is arrested under POTA, he may be detained for a period of two years, renewable every two years for an indefinite period. This is basically ISA 2.0. We took the stand that this system would ultimately create more terrorists because you cannot fight terrorism by smashing the rule of law.
 
For instance, what if the Najib administration catches a misguided 18-year old who supports ISIS? They could detain him and deny him his basic rights to a trial. Give him no access to a lawyer, no access to his family. He will simply disappear. When the authorities eventually release him, he may have become so angry and filled with hatred that he might just become a terrorist. When a man is denied justice or a fair trial, he might fight his oppressors harder.
 
We looked at history, how unfair detentions in Northern Ireland had in fact created more sympathizers and IRA fighters. The same too in the recent Egyptian crackdown on the Islamic Brotherhood. Our greatest fear is that POTA may end up creating more terrorists.
 
Q. But isn’t this about existing terrorists?
 
No, POTA is extremely wide ranging. It isn’t just restricted to containing terrorists who carry guns and bombs. Terrorist activities are given such a wide definition that it will include people who “support” terrorist groups. Support is such a vague term, and certain parts of the bill has wordings that refers to financial contribution and purchase of merchandise as terrorist activities. Thus, that categorizes someone who buys or sells ISIS t-shirts or ISIS flags as a terrorist too.
 
Several PAS MPs alerted me that the US treats Hamas as a terrorist organisation. In Malaysia, Hamas is accepted by many Muslims as an organization that tries to help Palestinians. Every Friday prayers, right across Malaysia, thousands of people donate to Islamic charities, which direct these donations toward the rebuilding of Palestine. What happens if Malaysia follows the US stance and declares Hamas a terrorist organisation? Combine this with such a wide definition under POTA, many thousands if not hundreds of thousands of Malaysian Muslims may be regarded as terrorists. Why create a law that makes thousands vulnerable to potential arrest and detention without trial? Some ask if this is intended to instill fear. History teaches us that a government that rules by fear will not be a government for long.
 
When my researchers dug deeper, we also discovered that not only some Muslims may be targeted, but some Tamils are also potential targets. The Tamil Tigers are currently classified as a terrorist group under Malaysian laws. The Tamil Tigers are very popular amongst the Tamil population in Malaysia. So with POTA, wearing a Tamil Tiger t-shirt will categorize you as a terrorist.

As I said earlier, if POTA is used against such supporters - putting them in detention without trial, and depriving them of legal rights under POTA - they may emerge hardened in terrorism. But if you give them a fair trial together with rehabilitation efforts, you stand a much better chance to return them to normalcy. 

An exclusive interview with Wong Chen, Parti Keadilan Rakyat, Member of Parliament for Kelana Jaya, 11 April 2015.

This is Part 1 of 3.

Next, read Part 2 - Interview (2/3): Wong Chen on anti-terrorism, sedition, bloc voting, missing MPs and more (Part 2 of 3) /khoryuleng/2015/04/interview-wong-chen-on-anti-terrorism_14.html
  • Was the POTA legislation rushed? What's with the 12 hour debate until the wee hours?
  • Were any BN MPs concerned about the POTA provisions?
  • Do opposition MPs ever vote to support UMNO-BN legislation?
  • So what about the Sedition Act - what are issues with this piece of legislation?
  • Some people ask if this the end of democracy in Malaysia (such as it is)? What do you say?
Read Part 3 here, /khoryuleng/2015/04/interview-33-wong-chen-on-anti.html:
  • People are angry with opposition MPs who did not turn up for the vote. What is your opinion on this?
  • Were they properly alerted to these crucial matters (POTA and Sedition Act amendment), so they could come back to vote?
  • But why not rush back? Why even be outstation or overseas in the first place? The POTA bill were on your desks a week beforehand. Don’t all MPs plan to be at all the Parliamentary sittings? How many days do you have each year for this?
  • Your observation – what are typical reasons for being missing from their seat in Parliament (other than being sick)?
  • You clearly have no answer for your missing brethren. OK, so, how can the opposition ever defeat a contentious UMNO/BN bill?
  • What other important bills were there in this sitting?
  • It’s been a long interview, any last words?

Khor Yu Leng has researched and written about the political economy of Felda and Johor-Iskandar and voting outcomes in GE13 (with a focus on rural voting behaviours). Some highlights here: /khoryuleng/2014/04/malaysia-political-economy-of-felda-and.html. These works were published in Kajian Malaysia / Journal of Malaysian Studies in 2014 and a book by ISEAS in 2015. She was Visiting Fellow at the Institute of Southeast Asian Studies (ISEAS) in 2013. She is married to Wong Chen.

 
  

Penang news (update 7): Changing property market of Penang ; Penang investments and budget surplus shows improved performance post 2008 under DAP administration; for 2014 Johor, Sarawak and Penang the top three states for investment. BPO projects in Batu Kawan and Bayan Baru respectively, would be jointly developed with Temasek Holdings and Economic Development Innovations Singapore

15 March 2015: Changing property market of Penang

Changing property market of Penang By: DAVID TAN Saturday, 14 March 2015 - Legislation, bridge and location are some factors affecting prices; UNTIL about a year ago, Penang’s south-west district was known as the locality for affordably-priced properties.Since 2008, Ideal Property Group has developed over 4,000 units with a RM3bil gross development value (GDV) there. These include One World, One Residence and Fiera Vista in Bayan Lepas, priced between RM300,000 and RM800,000. These have become landmark projects. In the sub-sale market, prices have since increased from RM380 to RM500 per sq ft (psf) for high rise condominium, and more than 50% for landed units.... With the Penang second bridge project completed last year, new launches of high-rise properties hit about RM550 psf last year.The very expensive ones are located in prime locations such as Tanjung Tokong, Tanjung Bungah, and Pulau Tikus neighbourhoods in the north-east district.
For example, when the Marinox Sky Villas, a leasehold condominium in Tanjung Tokong was launched in 2012, it was sold at around RM650 psf. This has increased to over RM600 psf last year.
Similarly, condominiums in City Residence at Tanjung Tokong by Ivory Properties priced at RM750 psf in late 2013 have increased to over RM1,000 psf today.... http://www.thestar.com.my/Business/Business-News/2015/03/14/Changing-property-market-of-Penang/?style=biz

27 February 2015: Penang investments and budget surplus shows improved performance post 2008 under DAP administration; for 2014 Johor, Sarawak and Penang the top three states for investment

Penang records 109% increase in investments By LOOI SUE-CHERN Published: 27 February 2015 2:08 PM Penang recorded a 109% increase in investments last year over 2013’s volume of RM3.91 billion. Out of the RM8.16 billion in domestic and foreign investments in 2014, RM5.1 billion came from foreign investment. Chief Minister Lim Guan Eng said this put Penang in the top three for states with the highest investments in the country last year, after Johor and Sarawak.... He said the domestic and foreign investments came mostly from the electrical and electronics (E&E) sector, while some also came from the biomedical sector. "This shows we are still strong in the E&E sector as a main player in the supply chain. It is a sign of sustainable progress. "We thank everyone in the industry as well as government agencies like the Malaysian Investment Development Authority (Mida) for all their efforts in drawing investments to Penang," he today. On the increase in investments, Lim said it was also important to look at the bigger picture. "From 2008 to 2013, we got RM40 billion compared with RM21 billion from 2002 to 2007.. http://www.themalaysianinsider.com/malaysia/article/penang-records-109-increase-in-investments#sthash.L6uzMIDb.dpuf

Penang made more in 6 years than BN did in 50 By Susan Loone 3:49PM Feb 26, 2015 - A clean administration has enabled the Penang government to accumulate budget surpluses for six consecutive years since 2008, Chief Minister Lim Guan Eng said today. This is through its practise of competency, accountability and transparency or CAT, a policy touted by the Pakatan Rakyat-led administration when it seized Penang from BN in the March 8, 2008 general election.... http://www.malaysiakini.com/news/290344

4 February 2015: Is there some concern at MIDA about the proposed China electronic sector investments in Penang - cautious of photovoltaic investments using Malaysia's GSP and COO as a transshipment point to beat anti-dumping problems?

Mida keeps close tabs on China, Taiwan PV makers By: DAVID TAN Wednesday, 4 February 2015
GEORGE TOWN: The Malaysian Investment Development Authority (Mida) is adopting a cautious stand on investments by photovoltaic (PV) solar manufacturers from China and Taiwan.
Mida deputy chief executive officer Datuk Phang Ah Tong told StarBiz that this was because Mida did not want Malaysia to be used as a transhipment point for China and Taiwan-made PV cells and panels to enter the United States, as the latter had imposed anti-dumping duties on PV products originating from China and Taiwan.... The US International Trade Commission had recently imposed a minimum 70% tariff rate on China PV modules, and an 11.45% to 27.55% rate for Taiwan PV manufacturers.... Phang said that so far there were no significant PV investments from China and Taiwan in Malaysia... “However, we are still pursuing investments in alternative renewable energy such as bio-mass, bio-gas and small hydro plant projects...........as a result of the foreign investments, Malaysia was the third largest solar module producer in the world after China and Japan, and the fourth largest producer of solar cells in 2013... The major corporations in Malaysia involved in PV manufacturing are First Solar and Panasonic Corp in Kulim Hi-Tech Park, Hanwa Q Cells in Cyberjaya, AUO Sunpower in Malacca and IRM Group Bhd in Ipoh.... Malaysia has been known as a transhipment point for China-made products using the GSP and COO documents issued for companies in Malaysia to enter Europe..... http://www.thestar.com.my/Business/Business-News/2015/02/04/Mida-keeps-close-tabs-on-China-Taiwan-PV-makers/?style=biz

30 January 2015: BPO projects in Batu Kawan and Bayan Baru respectively, would be jointly developed with Temasek Holdings and Economic Development Innovations Singapore , Penang housing affordability worsens, second worst after Sabah says Rahim & Co.

Penang sees RM5bil investments from 4 China MNCs listed in US By: DAVID TAN
Thursday, 29 January 2015; GEORGE TOWN: Penang will see some RM5bil worth of investments coming into the state in 2015 from four multinational corporations (MNCs) involved in electronic-based manufacturing activities.... investPenang director Datuk Lee Kah Choon said these were only initial investments that would materialise over the next 12 months.... Declining to name the companies, Lee said these could be China companies but public-listed in the United States..... Lee said the Penang International Technology Park and Business Process Outsourcing (BPO) projects in Batu Kawan and Bayan Baru respectively, would be jointly developed with Temasek Holdings and Economic Development Innovations Singapore and due for completion in five to 10 years...... “The projects has a gross development value of RM11.3bil and will generate 25,000 to 30,000 jobs in the future,” Lee said..... http://www.thestar.com.my/Business/Business-News/2015/01/29/Penang-sees-RM5bil-initial-investments-investments-this-year-It-expects-forays-from-four-MNCs-from-C/?style=biz

Housing affordability worsens with Sabah top of list, Penang, KL Thursday, 29 January 2015
KUALA LUMPUR: Housing affordability, which is based on the ratio of average terraced house price to average household income, has worsened over the past five years, according to Rahim & Co, Chartered Surveyors Sdn Bhd.... In its survey of the Malaysian property market 2014/2015, the ratio increased from 3.4 in 2009 to 3.6 in 2012 and 2014.... “This essentially means that an average terraced house would cost an average household or family in Malaysia, 3.6 times its annual gross income.... “The least affordable terraced house in Malaysia in 2014 was recorded for Sabah (6.2 times), Penang state (5.9 times) and Kuala Lumpur (5.6 times). Sarawak was fourth with a ratio of 4.4 times,” the survey showed.... Rahim & Co, which is one of the largest real estate consultancy companies in Malaysia, also said in its outlook that transaction activities in the residential sector after expected to soften with the implementation of the Goods and Services Tax (GST) in April 2015.
To recap, Rahim & Co said that over the past four year, property prices were fuelled by the nation’s development plans, investment concentration and also the rapid growth in Iskandar Malaysia.
“The cautious market sentiment echoes the state of property market in reaching its plateau and reconciliation period is expected in the near future,” it said...... http://www.thestar.com.my/Business/Business-News/2015/01/29/Housing-affordability-worsens-with-Sabah-top-of-list/?style=biz

28 January 2015:  RM 5 billion electronic sector investments expected

Penang eyes over RM5bil in investments Wednesday, 28 January 2015; GEORGE TOWN: Penang aims to secure more than RM5bil in foreign direct investments from four major electronics companies planning to set up their plants here... Director of InvestPenang, a Penang government investment arm, Datuk Lee Kah Choon, said the four multinational companies (MNCs) were awaiting the approval from Malaysian Industrial Development Authority (MIDA). Lee, who is also the special adviser to the Penang Chief Minister, said the MNCs would help spur the state's economy and create as many as 2,000 jobs. "The majority of the jobs available will be for engineers, while the remaining are the supportive roles that include administration and marketing," he told reporters after the briefing on Penangs Economic Outlook 2015 on Wednesday today. He said two of the companies had started recruitment drives here and they would start operations after they received the green light from MIDA.... http://www.thestar.com.my/Business/Business-News/2015/01/28/Penang-eyes-RM5bil-investments/?style=biz


14 January 2015: Penang construction-related controversies, worries about deterioration of livability, overdevelopment concern starts to scare some expatriate property investors? 

Just how much more development can Penang take, concerned observers ask BY HIMANSHU BHATT AND LOOI SUE CHERN Published: 14 January 2015; (Dennis and his wife) invested in a house in the idyllic Batu Ferringhi tourism belt and for the past five years, as expatriates, have attested to Penang's reputation as one of the most attractive and livable islands in Asia. That was until recently, when they learned of a multi-storey high-density mixed development project which will be built just yards behind their home – despite the Batu Ferringhi area being designated for low-density projects under the Penang Island Structure Plan. A recent string of construction-related controversies that include ugly hill cuttings, urban flash floods and traffic congestion is changing perceptions about Penang's liveability and raising questions as to how much more development the island can take before its environment starts to degrade and the quality of life for residents suffer. Such limits, or carrying capacity, however, have never been confirmed by the state..... But Chow, who is in charge of local government, traffic management and flood mitigation, admitted that the state wanted to maximize land use – which meant allowing hillslope and high-density developments. This is in view of expected demand for new property as the island's population increases. As it is, there were a total of 2,595 planning approvals issued, of which 552 projects took place from 2000 to October this year, according to the Penang Island Municipal Council (MPPP)...... This situation begs the question of what the authorities use as yardsticks to determine if new development will overtax the island's resources. In the absence of such information, Lim suggested that road congestion could be used as a good reference point...... A study for the master plan has found that there are a quarter of a million vehicular trips being made during peak morning hours every working day in the state. Of these, 42.5% are within the island, underscoring the strain faced by the limited road system..... To date, the delay in gazetting development blueprints for Penang island has taken on a political dimension, with the state Barisan Nasional (BN) opposition criticising the long wait for the Local Plan to take effect.... In the meantime, Dennis, the retired engineer from Europe, and his wife, are now looking at moving away, possibly to Bali. "We were happy here. That's why we invested our money and bought a house," the elderly man said. "But this kind of development scares us as foreigners. I feel very unsafe and insecure...... http://www.themalaysianinsider.com/malaysia/article/just-how-much-more-development-can-penang-take-ask-concerned-observers#sthash.LJ0de4un.dpuf

22 November 2014 - E&E human rights allegations, construction and property, social assistance maxed out says Guan Eng

Rebut human rights abuse allegations, urges Penang by Imran Hilmy; Last updated on 20 November 2014 - 04:27pm; GEORGE TOWN: Penang has urged the federal authorities to rebut allegations that human rights abuses were taking place in the electric and electronic (E&E) sector in Malaysia. Chief Minister Lim Guan Eng said both the International Trade and Industry Ministry (MITI) and Human Resources Ministry (HRM) should take steps to ensure the country was not sanctioned due to negative perception.... He added any unfavorable impression should be countered before action was taken which could affect the economy, noting Penang had a huge E&E sector. He expressed confidence the claims of human rights violations were not true and urged for quick end to the matter.
"We hope steps are taken to ensure the economy is not affected," he said in a press conference today.
Bayan Baru MP Sim Tze Tzin had on Monday claimed the US Labour Department will put Malaysia on the "International Ranking on Forced Labour" watch list next month.... The move comes after global NGO Verite in a report titled "Forced Labour in the Production of Electronic Goods in Malaysia", highlighted several issues by some 500 male and female workers which included deceptive recruitment, poor living conditions and passport retention.... http://www.thesundaily.my/news/1233000

Penang gives out jobs worth RM6bil By: DAVID TAN; Tuesday, 18 November 2014; GEORGE TOWN: The value of jobs given out this year to the construction and renovation industry in Penang is expected to be around RM6bil, compared with RM9.25bil a year ago.... Penang Master Builders and Building Material Dealers Association president Datuk Lim Kai Seng told StarBiz that the number of jobs to be given out this year in Penang was around 400, compared with 539 in 2013.
“The reason for the slowdown is because many of the important construction jobs from the Government had already been given out in 2013.... “Last year saw a record 539 jobs worth RM9.25bil being given out,” Lim said. For the first nine months of 2014, some 308 jobs valued at RM3.3bil were given out, compared with 289 worth RM5.3bil in the corresponding period of 2013, according to the latest Construction Industry Development Board report. Of the 308 jobs, some 45 were from the government sector, while the balance 263 were from the private sector.... It was reported in March that Kuala Lumpur and Penang-based developers would develop RM4.56bil worth of residential and commercial projects in Penang this year amid the challenging environment for the property sector.... Developers set to launch new projects include IJM Land Bhd (gross development value, or GDV, of RM538.5mil), Mah Sing Group Bhd (RM280mil), DNP Land Sdn Bhd (RM800mil), Wing Tai Malaysia Bhd subsidiary Ideal United Bintang (RM935mil), Tambun Indah Land Bhd (RM616mil), Sunway Bhd (RM290mil), SP Setia Bhd (RM300mil) and Eastern & Oriental Bhd (RM800mil).... http://www.thestar.com.my/Business/Business-News/2014/11/18/Penang-gives-out-jobs-worth-RM6bil/?style=biz

Penang can’t afford to spend more to help Penangites: Guan Eng; 15 November 2014 @ 10:14 AM;
GEORGE TOWN: The Penang government cannot “cough up” more to help the people in the state, including for transportation and healthcare because it cannot afford it, said Chief Minister Lim Guan Eng.... Lim (DAP-Air Putih) told the State Assembly that this was due to the fact that the state government had already extended “gold” assistance focusing on certain target groups... Among them are for warga emas (senior citizens), anak emas (special needs children), pelajar emas (outstanding students), schools, students of religious schools, the state’s Equitable Economic Agenda, net aid for fishermen, taxi drivers and trishaw riders.... “All these have totalled RM287,138,545.51 since 2008, and for 2015, RM116.94 million has been set aside for this purpose. “If there is added expenditure (for aiding people), the state government will not only experience a budget deficit but also might go bankrupt,” he said when winding up debate on the state’s Supply Bill 2015 yesterday.... http://www.nst.com.my/node/53174


9 July 2014 - Penang mega transport plan

Hot in recent Malaysia investor news is Penang's new integrated transportation plan. It will apparently be funded in large part by a land swap/ reclamation deal i.e. property development on reclaimed land. I happened to meet the Penang Chief Minister at the airport last week and ventured to say hello. He asked if I was from Penang and encouraged me to move and buy property in Penang - there's apparently upside to home prices there!

Starting to talk to international public policy specialists on this.

Q: Is DAP in Penang taking the Singapore PAP route of making property development a large component of its economy? Is this perhaps the only way they can get things done given federal-state financing situation in Malaysia?

A1. Interesting, but would have to be done carefully—Federal-State coordination still needed-otherwise political risk high. Singapore does not need to worry about that.
  
 
Broker research news on Penang's mega transport project:
 
Malaysia Construction (Hoy Kit Mak) - Penang integrated transportation plan positive for the sector - ALERT
"We remain positive on the Malaysian Construction sector, a beneficiary of the upcoming M$160B railway-related infrastructure spending. Latest newsflow on Penang’s plan for a M$27B integrated transportation plan (M$5B initial) is positive for contractors with deep pockets and large-scale project management expertise. A request for the proposal will be called next month, and key contenders include Gamuda, IJM, Scomi and WCT. We think IJM/Gamuda has an advantage, with a bias toward Gamuda, our top sector pick and one of our top country picks."
 
Malaysia Construction - Mega-projects: Let’s be realistic by  Tushar Mohata; Alpa Aggarwal, Nomura 08 Jul 2014: "News report suggesting Gamuda favourite for Penang transport project manager role§ Over the weekend, an article in The Star (Gamuda leads pack for multi-billion ringgit Penang transport job, 5 July 2014) suggested that Gamuda (GAM MK, Buy) is a frontrunner for the Project Delivery Partner (PDP) role for the Penang island integrated transportation plan, with the project worth as much as MYR 27bn (recall that the PDP fee for MRT Line 1 was 6% of the total project value). § The market has taken this news positively, with Gamuda’s stock price up 2.5% on Monday.Mega-project awards to be slow; advise investors to be conservative§ We caution investors on having high expectations from Malaysian mega-projects (such as the Penang transport plan) in the near to medium-term. The government has multiple mega-projects on its radar as part of its Economic Transformation Plan goals, and construction works for some of these projects may involve a huge capital outlays. § Indeed, as we have seen in the past, various projects keep surfacing in media reports / budget announcements, only to be put on the backburner again (see Fig 2, a case in point being the MYR 8bn Gemas – JB Southern Double Tracking project, which has been discussed for several years now but is nowhere close to being awarded, in our view).Stick to high likelihood project winners – e.g., MRT Line 2, WCE§ Keeping the fiscal constraints in mind, as well as pending negotiations with the population over land acquisition and alignment issues, the government might spread out the award of these projects over multiple years. § The government is also likely to prioritize projects that have more immediate multiplier effects, and as a result, some of these discussed projects might not see the light of day anytime soon (see Fig 2).§ It is very difficult to say whether the Penang transport project will take off in the coming months, or to speculate on possible winners, in our view. Moreover, the winner of the Penang transport jobs will be compensated through a land swap / reclamation deal, which would take years to monetize through property development activities on the reclaimed land.§ As a result, we advise investors to selectively stick with contractors whose projects are already partially off the ground / awarded. We like Gamuda (GAM MK, Buy), as we are confident of the company’s prospects on MRT Line 2 Underground and PDP works and not for the Penang projects. We also like IJM (IJM MK, Buy) because of its more certain near-term earnings from the recently awarded West Coast Expressway (WCE) contract.§ Additionally, with 30-50% of their earnings being driven by property, these companies also benefit from a less volatile, higher-margin earnings stream."

 
 
 

Malaysia-Indonesia: Confirms sinking of Malaysia fishing vessel

Malaysia confirms sinking of fishing vessel by Indonesian authorities; PUTRAJAYA: Malaysia's Ministry of Foreign Affairs has confirmed news reports that a Malaysian-flagged vessel that was sunk by Indonesian authorities on Jan 8 (Thursday). The fishing vessel PKFA 7738 was sunk after it was found guilty of conducting illegal fishing activities in Indonesian waters off the coast of Pulau Pandang, Indonesia.... Several Malaysian news outlets had reported on Thursday that a Malaysian fishing vessel was sunk by Indonesian authorities in Belawan waters for allegedly conducting illegal fishing.- CNA/ac... http://www.channelnewsasia.com/news/asiapacific/malaysia-confirms-sinking/1580270.html

Festive greetings and Happy 2015!


Dear readers,
 
Thank you for you interest in my political-economy blog. It's done in my spare time as I'm busy with my day job. Thank you to those recently asking me for papers, but sadly, I've had to largely decline. I've got some heavy deadlines for end of this week and just after that is the year end break, so here's an early year-end greeting and best wishes for the coming year (in which I'll have to revive my book project)!
 
cheers,
yuleng
 
.............
 
Recent blog posts:
 
Sovereign wealth fund / SWF news (update 1): 1MDB worries erupt on UMNO rep's police report and Malaysia Cabinet meeting?
http://khoryuleng.blogspot.com/2014/08/sovereign-wealth-fund-swf-news.html
 
Petronas news (update 1): Weaker credit metrics, PETRONAS lower earnings problem for Malaysia coffers, award of Sabah onshore deals
http://khoryuleng.blogspot.com/2014/06/petronas-rapid-project-in-johor.html

Johor / Iskandar developments watch (update 6): Indonesia investors, Tanjung Langsat as largest private jetty operator
http://khoryuleng.blogspot.com/2014/09/johor-developments-watch.html

Malaysia labour concerns
http://khoryuleng.blogspot.com/2014/12/malaysia-labour-concerns.html

Malaysia-China relations (update 46): Historical perspectives on Malaysia's foreign policy - committing to both the USA and China?
http://khoryuleng.blogspot.com/2014/03/malaysia-china-relations.html (7500+ views on this topic, by far the fave...)

Sabah news (update 6): Sabah onshore oil & gas, the oil royalty push, secession talk is sedition
http://khoryuleng.blogspot.com/2014/08/sabah-sulu-problems-fester-on.html

Penang news (update 1) - E&E human rights allegations, construction and property, social assistance maxed out says Guan Eng
http://khoryuleng.blogspot.com/2014/07/penang-mega-transport-plan.html

Brazil's Vale in Malaysia (update 1b): Distribution in 10 days and 35% reduction in carbon emissions per tonne of ore
http://khoryuleng.blogspot.com/2014/11/malaysia-as-brazil-vales-logistics-hub.html

Malaysia opposition in crisis (update 16): What is the status of the PR opposition coalition?
http://khoryuleng.blogspot.com/2014/07/malaysia-opposition-in-crisis.html

 
 
Recent papers and upcoming:
 
Singapore-Johor update: ISEAS Perspective "Iskandar Labours to Develop" by Khor Yu Leng and Vasiliki Mavroeidi
http://khoryuleng.blogspot.com/2014/11/singapore-johor-update-iseas.html
 
The Political Tussle Over Felda Land Schemes – UMNO Strengthens Its Malay Rural Fortress in 13th General Election by Khor Yu Leng
http://khoryuleng.blogspot.com/2014/11/the-political-tussle-over-felda-land.html
 
Also, I've a co-author article with Prof Terence Gomez, with my inputs on Malaysia-China economic relations...