Builders all for scrapping price controls

The STAR, 26 March 2008

KUALA LUMPUR: The Master Builders Association Malaysia supports the proposal by Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad to scrap the price control mechanism.

Its secretary-general Yap Yoke Keong said the association would like to call for an open market system where prices were determined by market forces.

MBAM members were facing steep price increases and acute shortage of steel bars and cement and had been unable to obtain the items at government-controlled prices, he said.

Yap said local steel millers were requesting “under-table” money of RM800 to RM1,000 per tonne on top of the RM2,225 to RM2,419 price, while actual transaction prices of cement were RM2 to RM3 above the RM10.95 ceiling price.

“Steel millers are not providing the whole range of steel bar sizes and orders have been incomplete and inconsistent,” he added.

Yap urged the Domestic Trade and Consumer Affairs Ministry to scrap price controls for steel bars and cement as well as remove tariffs on imported steel bars.

The Real Estate and Housing Developers Association (Rehda) also urged the ministry to look into the issue.

President Ng Seing Liong proposed that price controls and the automatic price mechanism for cement be eliminated, and the export of steel bars and cement be banned and imports allowed.

“Controls benefit only the producers and not the industry and property buyers,” he said in a press release.

Selangor water deal valid, says Shaziman

The STAR, 25 March 2008

By V.P. SUJATA

PUTRAJAYA: The concession agreement between the Selangor state government and Puncak Niaga Holdings Bhd that was signed on the eve of the general election is still relevant, said Energy, Water and Telecommunications Minister Datuk Shaziman Abu Mansor.

The agreement for the operation and maintenance of the Sungai Sireh water treatment plant was a valid agreement unless the National Water Services Commission (SPAN) declares it null and void, he said.

"The agreement is lawful as long as it is accepted by SPAN. It is still relevant unless SPAN declares it null and void," he said.

Shaziman also said that the Selangor Government's decision to waive charges for the first 20 cubic metres of water used by households was not a good idea, as people would tend to waste water.

In fact, he said, the water usage in Selangor, which was about 240 litres per person, was higher than the national average of 180 litres.

"Free water will encourage people to waste water, a vital commodity that Selangor would be facing a critical shortage of; and that is why the Government decided on the water transfer project from Pahang to Selangor," he said.

He said the new state government had not presented the ministry with a concrete proposal on the free water, adding that such plans would be feasible if the "state government has tonnes of money."

Shaziman was speaking to reporters Tuesday after taking over from his predecessor Datuk Seri Dr Lim Keng Yaik at the ministry here.

When asked on the electricity tariff, he said as long as gas and oil prices remained the same, there was no reason for the Government to increase the electricity tariff but what was vital was managing the demand for energy.

He also hoped that the whole of Sabah would be provided with electricity by 2010.

Price Controls May Go

The STAR, Tuesday March 25, 2008

PUTRAJAYA: Consumers can expect major changes in the demand and supply mechanism, including doing away with controlling the prices of essential goods, said Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad.

He gave an assurance that all changes to be taken would benefit the consumers.

“Whatever we do, we must ensure that there is abundant and sufficient supply (of consumer goods),” he told reporters after “taking over” the ministry for former minister Datuk Shafie Apdal here yesterday.

Shahrir said ensuring sufficient supply would need a concerted effort from several ministries including Agriculture and Agro-based Industries, Plantation Industries and Commodities and International Trade and Industry.

He said he would look into operating an open market system and let prices be determined by market forces.

He noted that everyone was under the perception that Malaysia was a big market when actually it was small, making it easy for a few businessmen and manufacturers to control the market.

“We know there is always the Afta (Asean Free Trade Area); if we allow products to enter the Asean region, we may have a better price system and supply may be better.

“These are some of the things we have to look at,” he added.

Shahrir said having price control mechanisms was not realistic, as supply could not be controlled.

Demand, he said, was well understood but if the supply was not within control, then artificial barriers to the supply would emerge and prices would still not be real.

“When we do not know the real price, how can we have a price control? (We) might be artificially controlling the price,” he said, jokingly adding that he was glad the spate of price increases which started in November last year was over.

Asked which issue he would tackle first, Shahrir said he needed time and planned to meet the manufacturers who were seeking price increases for certain goods.

Kedah may charge for raw water

10 March 2008
New Straits Times

New Menteri Besar Azizan Abu Razak receiving his letter of appointment from Kedah’s Sultan Abdul Halim Mu’adzam Shah during the swearing-in yesterday. — NST picture by Rizal Braim

ALOR STAR: The state government is seriously considering charging Penang and Perlis for the use of Kedah's raw water, said newly-appointed Menteri Besar Azizan Abdul Razak.

He said this was imperative as the state needed funds to carry out more development projects for the people.

"Raw water, land and timber are some of the main sources of income for the state and we will find means to finance development projects for the people," he said after being sworn in as Kedah's ninth menteri besar at Wisma Darul Aman yesterday.

He was asked if the state government would pursue the former Barisan Nasional-led state government's plan to charge Penang and Perlis for raw water from Kedah.

Asked about some other major projects initiated by the former state and federal governments in Kedah, Azizan said he would review the RM50 billion Zipy petroleum pipeline project in Yan and the Northern Corridor Economic Region (NCER).
In the case of Zipy, he said the state would only benefit from it after 40 years. As for the NCER, Azizan said he needed more information on the economic programme.

Asked if he would introduce Islamic regulations and administrative systems modelled after the Pas-led Kelantan government, he said it depended on their suitability.

"Kedah is different from Kelantan in many ways, but we will find those suitable for us to follow."

Azizan declined to say if he would appoint the sole DAP assemblyman, Lee Guan Aik (Kota Darulaman), as an executive councillor.

Kedah Pas won 16 state seats, Parti Keadilan Rakyat won four, while one each went to the DAP and an Independent. Kedah BN won 14 state seats.

Earlier, Azizan received his letter of appointment from the Sultan of Kedah Sultan Abdul Halim Mu'adzam Shah.

The 68-year-old Kedah Pas commissioner also led all assemblymen, including the 14 from BN, at a swearing-in ceremony before the sultan. Leading the BN assemblymen was former menteri besar Datuk Seri Mahdzir Khalid.