The Sun, 24 March 2009
by Dr Ibrahim Abu Shah
RECENTLY, Datuk Seri Utama Dr Rais Yatim, the foreign minister, spoke on TV and lamented that knowledge of the pre-Merdeka "social contract" is lacking within the younger generation. In fact, many older citizens of all races are also unaware of this solemn pact and its specific aims and contents.
As Umno grapples with the twin challenge of assuring Malays of their special, pre-eminent position and the non-Malays of their legitimate rights, we need to revisit the painstaking process of negotiated settlement between the various ethnic groups and the Malay Rulers on their political, economic, linguistic, religious and cultural rights under the Merdeka Constitution. We need to take cognisance of the articulate and inarticulate presumptions of our basic charter.
As the forefathers of the constitution were chiselling out the scintillating details of the law, some facts and events, some ideas and ideals and some assumptions provided the foundation on which the superstructure of the Malayan state was constructed. These "foundational assumptions" constitute our social contract.
The constitution took note of the deep wounds inflicted on Malays by the Malayan Union and the McMichael treaties. These British agreements had deprived the Malays of their historical privileges and had abandoned the pre-war policy of recognising Malaya as a Malay country.
Consequently, at the insistence of the Umno leadership, the Alliance partners agreed that some traditional and indigenous features of the Malay archipelago would, with some modifications, be central features of our constitution. These traditional features are: Malay sultanate, Malay privileges, Malay custom, Islam, Malay reserve land and Malay language.
The Malay sultanate was retained but converted to a constitutional monarchy with some discretionary functions. In Articles 38 and 159, the Conference of Rulers was given veto powers over some types of constitutional amendments that affect their majesties, the special position of the Malays and the legitimate interests of other communities.
The Reid commission’s recommendation that Malay privileges should have a 15-year time limit was rejected. Article 153 made affirmative action policies an integral and permanent feature of the political and economic landscape. Any challenge to Malay privileges would be seditious. Any legislative proposal to amend them would require the consent of the Conference of Rulers.
Contrary to the Reid commission’s proposal to leave Islam as a matter confined to State Constitutions, Article 3 was inserted into the Federal Constitution to provide for Islam as the religion of the federation. The state was permitted to promote Islam vigorously, to provide for Islamic education, to set up syariah courts and to subject Muslims to Islamic laws in areas permitted by the Federal Constitution. There are restrictions on propagation of other religions to Muslims. The constitution implicitly recognises that Islam is the defining feature of the Malay way of life.
Malay custom was recognised as a source of family law for Malays. Malay reserve land was protected in Article 89.
The Malay language was chosen as the language that would unite the nation. Non-Malay insistence on other official languages was rejected but English, Chinese and Tamil may be used for unofficial purposes.
The constitutions of all nine states with Malay sultans provide that the mentri besar shall be a Malay. In some states even the state secretary shall be a Malay.
Side by side with these Malay features, the constitution conferred a vast number of rights on the non-Malays.
Foremost were citizenship rights granted to all persons, no matter of what origin, who were born in Malaya or Singapore. This generous constitutional grant was made in perpetuity with the consequence that the children and grandchildren of former immigrants have a right to call this country their permanent home.
Fundamental rights are available to all citizens irrespective of race or religion. Except in relation to personal laws permitted by Article 8(5) and to Malay privileges permitted by Article 153, there is no discrimination on grounds of race or religion.
Side by side with Islam as the religion of the federation, all other religions may be professed, practised and propagated in peace and harmony: Article 3 and 11. No person can be subjected to a religious tax of a religion other than his own. All religions have the right to set up their own religious institutions. No one can be compelled to receive instruction in a religion other than his own: Article 12.
Rights in respect of education are available to all persons irrespective of religion or race. All political, social, cultural and religious groups have freedom of association: Article 10(1)(c). Except for official purposes, there is a right to promote one’s language.
Malay privileges are offset by guarantees for non-Malays. For example, land reserved for Malays must be accompanied by an equal area of land available for general alienation: Article 89(2). Article 153 on Malay privileges specifically provides that quotas and reservations for Malays and the natives of Sabah and Sarawak will not be used to deprive non-Malays of permits and licences they already hold. The Yang di-Pertuan Agong is required to protect "the legitimate interests of other communities".
Under 150(6A), it is provided that even in times of emergency, rights in respect of religion, citizenship and language cannot be violated. The Conference of Rulers is made the ultimate guardian of citizenship rights of all persons. Any amendment to citizenship rights requires the consent of the Conference of Rulers.
Electoral rights to vote and to contest parliamentary and state seats is available to all citizens. A right to property, a right to trade and commerce and an entitlement to market rights in an open – and largely non-Malay owned – economy was permitted.
Unlike in some East African states where the properties and assets of immigrant communities were compulsorily expropriated, the policy in Malaysia has been to resort to peaceful and gradual social restructuring under the law. Evolution, not revolution, has been the Malaysian modus operandi.
In sum, the Constitution of the Federation of Malaya was built on a spirit of moderation, of give and take and of workable compromises between all stake-holders. The resulting agreements constitute our social contract. We need to study and understand the spirit of compassion and compromise that animated the basic law. We need to respect it, internalise it and build on it.
Datuk Seri Prof Dr Ibrahim Abu Shah is vice-chancellor of UiTM.
Monday, March 30, 2009
Rais: Social contract must be explained
New Straits Times, 20 March 2009
KUALA LUMPUR: It is not late to rectify the confusion surrounding the essence and meaning of the social contract, which is the basis of the country's foundation.
Foreign Minister Datuk Seri Dr Rais Yatim said it was just a question of clearing the air and clarifying the issues to put the matter in the proper perspective.
He said it was the responsibility and duty of parents, elders and intellectuals to correct the confusion.
In reply to questions posed on the programme Dialog@1 on RTM1 on Wednesday night, he said the manner in which the social contract was questioned showed that many had forgotten that the agreement was forged by a multi-ethnic community.
This led to the formation of a federation and eventually Malaysia.
To a question from interviewer, Dr Asyraf Wajdi, Rais said just because the younger generation did not subscribe to the social contract did not mean it was not important.
"Just because they (younger generation) do not remember does not mean that it does not exist."
Rais said the proposals contained in the Reid Commission, which was agreeable to all communities in the run-up to the country's independence in 1957, provided for special rights for the Malays and Islam as the official religion of the federation.
He said the provisions were enshrined in the Federal Constitution.
Rais said the social contract as well as its essence could not be wished away, even if one wanted to do it.
KUALA LUMPUR: It is not late to rectify the confusion surrounding the essence and meaning of the social contract, which is the basis of the country's foundation.
Foreign Minister Datuk Seri Dr Rais Yatim said it was just a question of clearing the air and clarifying the issues to put the matter in the proper perspective.
He said it was the responsibility and duty of parents, elders and intellectuals to correct the confusion.
In reply to questions posed on the programme Dialog@1 on RTM1 on Wednesday night, he said the manner in which the social contract was questioned showed that many had forgotten that the agreement was forged by a multi-ethnic community.
This led to the formation of a federation and eventually Malaysia.
To a question from interviewer, Dr Asyraf Wajdi, Rais said just because the younger generation did not subscribe to the social contract did not mean it was not important.
"Just because they (younger generation) do not remember does not mean that it does not exist."
Rais said the proposals contained in the Reid Commission, which was agreeable to all communities in the run-up to the country's independence in 1957, provided for special rights for the Malays and Islam as the official religion of the federation.
He said the provisions were enshrined in the Federal Constitution.
Rais said the social contract as well as its essence could not be wished away, even if one wanted to do it.
Hishammuddin slams those who questioned social contract
New Straits Times, 25 March 2009
Sajahan Abdul Waheed
KUALA LUMPUR, Wed: Datuk Seri Hishammuddin Hussein hit out at certain quarters who questioned the social contract and the privileges enjoyed by Malays and the Bumiputeras in his farewell speech as the Umno Youth head today. (See video)
“The social contract has been misinterpreted and made an issue to burn racial sentiments," he said when addressing the Umno Youth delegates during its general assembly today.
"People are not discussing it from the right perspective. What they forget is that in the social contract, there is also a guarantee on the future and safety of the non-Malays.
“There are some who dare to even question our Constitution, insult the royalty and challenge the status of Islam as our official religion."
Hishammuddin, who was choked with emotions several times while delivering his speech, cautioned those concerned against misusing the freedom of speech and expression, especially on issues that would create racial disharmony.
“Umno Youth should fight against such people and traitors who are willing to do anything to discredit the name and image of our country in order to achieve their political ambitions," he said.
“We will protect our Constitution, uphold the laws, protect the rights and status of the Malays and Bumiputeras, Islam and the royal institution."
On the elections for top posts in Umno Youth, Hishammuddin said it showed that the movement was not short of capable and talented leaders who were willing to work for the people and the party.
“I believe that the new leaders elected today would be faced with big challenges to rejuvenate Umno Youth and the party. I am sure they will have the ability to sail through.
“I am also pleased that all three candidates contesting for the Umno Youth head post had pledged to accept the decision made by the delegates and would not allow the movement to be divided.
Hishammuddin expressed his gratitude on behalf of Umno Youth members to out-going party president Datuk Seri Abdullah Ahmad Badawi for his contributions.
“We also pledge our continued and undivided support to our in-coming president Datuk Seri Najib Razak.”
At the end of his speech, Hishammuddin was presented with a kris, 'keris panca warisan', by his deputy Khairy Jamaluddin.
Sajahan Abdul Waheed
KUALA LUMPUR, Wed: Datuk Seri Hishammuddin Hussein hit out at certain quarters who questioned the social contract and the privileges enjoyed by Malays and the Bumiputeras in his farewell speech as the Umno Youth head today. (See video)
“The social contract has been misinterpreted and made an issue to burn racial sentiments," he said when addressing the Umno Youth delegates during its general assembly today.
"People are not discussing it from the right perspective. What they forget is that in the social contract, there is also a guarantee on the future and safety of the non-Malays.
“There are some who dare to even question our Constitution, insult the royalty and challenge the status of Islam as our official religion."
Hishammuddin, who was choked with emotions several times while delivering his speech, cautioned those concerned against misusing the freedom of speech and expression, especially on issues that would create racial disharmony.
“Umno Youth should fight against such people and traitors who are willing to do anything to discredit the name and image of our country in order to achieve their political ambitions," he said.
“We will protect our Constitution, uphold the laws, protect the rights and status of the Malays and Bumiputeras, Islam and the royal institution."
On the elections for top posts in Umno Youth, Hishammuddin said it showed that the movement was not short of capable and talented leaders who were willing to work for the people and the party.
“I believe that the new leaders elected today would be faced with big challenges to rejuvenate Umno Youth and the party. I am sure they will have the ability to sail through.
“I am also pleased that all three candidates contesting for the Umno Youth head post had pledged to accept the decision made by the delegates and would not allow the movement to be divided.
Hishammuddin expressed his gratitude on behalf of Umno Youth members to out-going party president Datuk Seri Abdullah Ahmad Badawi for his contributions.
“We also pledge our continued and undivided support to our in-coming president Datuk Seri Najib Razak.”
At the end of his speech, Hishammuddin was presented with a kris, 'keris panca warisan', by his deputy Khairy Jamaluddin.
Restructuring water service
New Straits Times, 31 March 2009
By : Hamidah Atan
PUTRAJAYA: The Federal Government will not discriminate against the opposition-ruled Selangor government in restructuring its water service.
Energy, Water and Communications Minister Datuk Shaziman Abu Mansor said the restructuring model had been well received by the Negri Sembilan and Malacca state governments.
"It must be emphasised that the Selangor restructuring model is the same one used to restructure the Johor water service, which was implemented successfully.
"It must also be emphasised that the Federal Government will not adopt an approach that is discriminatory in nature against Selangor, even though it is under the administration of the opposition."
The ministry had produced booklets to explain to the public the restructuring of the Selangor water service.
Shaziman said the Federal Government would assist Selangor in the restructuring process but with conditions.
Water company Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), owned by the state government through a 30 per cent equity ownership, is licensed under the 2006 Water Service Industry Act (Act 655).
Three concession water treatment companies -- Puncak Niaga Sdn Bhd (PNSB), Konsortium Abass Sdn Bhd (Abass) and Syarikat Pengeluaran Air Selangor Sdn Bhd (Splash) -- are allowed to continue their operations until their concessionary period expire.
"For Syabas, the proposed service licence allows them to implement water service operations and maintenance of assets. This licence needs to be renewed every three year, depending on the level of compliance," Shaziman said.
A condition was that there should not be any hike in water tariff this year.
He said the ministry's primary concern was to ensure a continuous supply of water and keeping the tariffs low.
Any more delays in water restructuring in Selangor would result in cash flow problems and financial defaults among the concessionaires, which would eventually put the state's water supply at risk, he said.
The ministry had allowed the Selangor government deadline extensions to buy over the water companies on its own four times between Sept 19 last year and Feb 14.
The state eventually offered to pay RM5.7 billion for all the water assets but the companies rejected it, mainly because the offer was too low.
By : Hamidah Atan
PUTRAJAYA: The Federal Government will not discriminate against the opposition-ruled Selangor government in restructuring its water service.
Energy, Water and Communications Minister Datuk Shaziman Abu Mansor said the restructuring model had been well received by the Negri Sembilan and Malacca state governments.
"It must be emphasised that the Selangor restructuring model is the same one used to restructure the Johor water service, which was implemented successfully.
"It must also be emphasised that the Federal Government will not adopt an approach that is discriminatory in nature against Selangor, even though it is under the administration of the opposition."
The ministry had produced booklets to explain to the public the restructuring of the Selangor water service.
Shaziman said the Federal Government would assist Selangor in the restructuring process but with conditions.
Water company Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), owned by the state government through a 30 per cent equity ownership, is licensed under the 2006 Water Service Industry Act (Act 655).
Three concession water treatment companies -- Puncak Niaga Sdn Bhd (PNSB), Konsortium Abass Sdn Bhd (Abass) and Syarikat Pengeluaran Air Selangor Sdn Bhd (Splash) -- are allowed to continue their operations until their concessionary period expire.
"For Syabas, the proposed service licence allows them to implement water service operations and maintenance of assets. This licence needs to be renewed every three year, depending on the level of compliance," Shaziman said.
A condition was that there should not be any hike in water tariff this year.
He said the ministry's primary concern was to ensure a continuous supply of water and keeping the tariffs low.
Any more delays in water restructuring in Selangor would result in cash flow problems and financial defaults among the concessionaires, which would eventually put the state's water supply at risk, he said.
The ministry had allowed the Selangor government deadline extensions to buy over the water companies on its own four times between Sept 19 last year and Feb 14.
The state eventually offered to pay RM5.7 billion for all the water assets but the companies rejected it, mainly because the offer was too low.
Cabinet to decide Wed on water tariff hike
New Straits Times, March 31, 2009
By YEOW POOI LING
Minister will present Syabas proposal on hike to Cabinet
PETALING JAYA: The Cabinet will decide tomorrow whether the water distributor concessionaire in Selangor and Federal Territory of Kuala Lumpur can raise water tariff by as much as 31% on the same day as provided for in the concession agreements.
Energy, Water and Communications Minister Datuk Shaziman Abu Mansor said he would be presenting a proposal to the Cabinet on Syarikat Berkalan Air Sdn Bhd’s (Syabas) request for the tariff increase.
“The ministry has to present its opinion to the Cabinet on the proposed tariff hike and the quantum of increase that should be given to the concessionaire. The Cabinet will then decide,” Shaziman said after launching the France Asia Trade Forum yesterday.
This is despite the fact that the minister himself has the powers to either delay or give the nod for the tariff hike. Under section 114 of the Water Services Industry Act 2006 (WSIA2006), the minister is empowered to decide on water issues based on national interest.
Datuk Shaziman Abu Mansor showing the booklet
The original date for the increase in water rates was Jan 1 but this was postponed to April upon the state’s request pending negotiations over sale of water assets in Selangor to the Government under the national water restructuring exercise.
At the same function, the minister issued a booklet that stated the distribution of water for Selangor after the takeover of water assets by national water asset company Pengurusan Aset Air Bhd (PAAB) would remain status quo, with Syabas given a licensing from the regulator.
The other three water concessionaires – Puncak Niaga Sdn Bhd (PNSB), Syarikat Pengeluar Air Selangor Sdn Bhd (Splash) and Konsortium Abass Sdn Bhd – would be allowed to operate on authorisation basis.
The respective water operators for Malacca, Negri Sembilan and Johor also maintained their operations after PAAB took over their assets.
The Selangor government has till today to finalise the consolidation of the state’s water sector.
But it is unlikely to make any headway as the four concessionaries have not taken up its offer. Selangor had earlier offered RM4.6bil for the assets and RM1.1bil for the concessions.
PAAB is now in negotiations directly with the concessionaires in Selangor.
Shaziman said the federal government would not “force” the state to migrate to the new regime.
“If the state is unwilling, it would have to comply with the terms in the agreement signed between the federal, state and the concessionaires, which included the tariff increase,” he said.
Should the tariff increase be rejected by the state, it would have to bear the compensation cost as stipulated in the agreement, he added.
It was estimated that the compensation could amount to RM38mil a month.
Shaziman said the ministry was still open to work with the state to resolve the present issue.
“In fact, there is a proposal from the state on the matter and we have asked them to send a team to provide further details. If the proposal is beneficial to the people, we will accept it.
“So far, we have not received any response from the state,” he added.
Selangor Water Review Panel member Tony Pua told StarBiz that the state’s proposal remained similar with the past, which was to seek approval to lead the negotiation with the concessionaires pertaining to the water restructuring.
He said the potential tariff increase was questionable given that audit reports had revealed that Syabas failed to comply with several concession terms, including awarding contracts via open tender.
“Why keep the service provider when it has a poor track record in the last four years and broken some terms in the past?” Pua said.
By YEOW POOI LING
Minister will present Syabas proposal on hike to Cabinet
PETALING JAYA: The Cabinet will decide tomorrow whether the water distributor concessionaire in Selangor and Federal Territory of Kuala Lumpur can raise water tariff by as much as 31% on the same day as provided for in the concession agreements.
Energy, Water and Communications Minister Datuk Shaziman Abu Mansor said he would be presenting a proposal to the Cabinet on Syarikat Berkalan Air Sdn Bhd’s (Syabas) request for the tariff increase.
“The ministry has to present its opinion to the Cabinet on the proposed tariff hike and the quantum of increase that should be given to the concessionaire. The Cabinet will then decide,” Shaziman said after launching the France Asia Trade Forum yesterday.
This is despite the fact that the minister himself has the powers to either delay or give the nod for the tariff hike. Under section 114 of the Water Services Industry Act 2006 (WSIA2006), the minister is empowered to decide on water issues based on national interest.
Datuk Shaziman Abu Mansor showing the booklet
The original date for the increase in water rates was Jan 1 but this was postponed to April upon the state’s request pending negotiations over sale of water assets in Selangor to the Government under the national water restructuring exercise.
At the same function, the minister issued a booklet that stated the distribution of water for Selangor after the takeover of water assets by national water asset company Pengurusan Aset Air Bhd (PAAB) would remain status quo, with Syabas given a licensing from the regulator.
The other three water concessionaires – Puncak Niaga Sdn Bhd (PNSB), Syarikat Pengeluar Air Selangor Sdn Bhd (Splash) and Konsortium Abass Sdn Bhd – would be allowed to operate on authorisation basis.
The respective water operators for Malacca, Negri Sembilan and Johor also maintained their operations after PAAB took over their assets.
The Selangor government has till today to finalise the consolidation of the state’s water sector.
But it is unlikely to make any headway as the four concessionaries have not taken up its offer. Selangor had earlier offered RM4.6bil for the assets and RM1.1bil for the concessions.
PAAB is now in negotiations directly with the concessionaires in Selangor.
Shaziman said the federal government would not “force” the state to migrate to the new regime.
“If the state is unwilling, it would have to comply with the terms in the agreement signed between the federal, state and the concessionaires, which included the tariff increase,” he said.
Should the tariff increase be rejected by the state, it would have to bear the compensation cost as stipulated in the agreement, he added.
It was estimated that the compensation could amount to RM38mil a month.
Shaziman said the ministry was still open to work with the state to resolve the present issue.
“In fact, there is a proposal from the state on the matter and we have asked them to send a team to provide further details. If the proposal is beneficial to the people, we will accept it.
“So far, we have not received any response from the state,” he added.
Selangor Water Review Panel member Tony Pua told StarBiz that the state’s proposal remained similar with the past, which was to seek approval to lead the negotiation with the concessionaires pertaining to the water restructuring.
He said the potential tariff increase was questionable given that audit reports had revealed that Syabas failed to comply with several concession terms, including awarding contracts via open tender.
“Why keep the service provider when it has a poor track record in the last four years and broken some terms in the past?” Pua said.
No hike in water tariffs, Selangor promises
STAR, March 30, 2009
By SIM LEOI LEOI
PETALING JAYA: Selangor has promised to challenge any decision by the federal government to increase its water tariff come Wednesday.
Selangor water review panel member Charles Santiago said this was because any tariff increase needed the state government’s consent.
“The state government is a party to the concessionaire agreements signed with the water companies.
“Although the federal government has the golden share, it will still need our consent if it plans to implement the increase.
“The state government is prepared to challenge the decision in court,” he said Monday.
Asked if Selangor would ask the federal government to defer any tariff increase, set to come into effect on Wednesday under the terms of the original concessionaire, Santiago said there was no need for any postponement.
“We have already given the federal government an offer. Why don’t they look at it?” he asked.
Selangor had earlier proposed to the federal government that the concession with the water companies be terminated as some of the firms had violated their agreements and let the state take over the assets.
However, the federal government had told Selangor that it was not in the position to terminate the agreements.
Santiago was commenting on a statement by Energy, Water and Communications Minister by Datuk Shaziman Abu Mansor that it would put forward a Cabinet paper on the matter of water tariff increase this Wednesday.
Selangor must undertake a water restructuring exercise by Tuesday, failing which tariffs will rise by 37% for 1.5mil consumers in Selangor, Putrajaya and the Federal Territory under the orginal concessionaire agreement.
However, if there is any increase, it should be around 31%, as suggested by the Auditor-General Department.
The federal government had earlier deferred the increase, which was supposed to have taken effect on Jan 1.
It had also written to Selangor, informing it of the increase this Wednesday as well as for the compensation to be paid for the three-month deferment from Dec 31.
“Selangor has responded to the letter where we told the federal government that our original proposal stands,” said Santiago.
When contacted, a senior official with the Selangor Mentri Besar Tan Sri Khalid Ibrahim said he would issue a statement on the matter either Tuesday or Wednesday as the latter was still in Sarawak for the Batang Ai by-election.
“Selangor will disagree with any tariff increase. This shouldn’t have happened and we have a legal basis for our views,” said the official.
Forum Air Malaysia secretary Piara Pakaran Subramaniam said that, with just a day to go before the increase, none of the consumer groups in its coalition had been briefed on the progress or whether consumers would be spared the tariff increase.
“Whatever it is, we want the tariff increase put off until the matter of the takeover of Selangor water assets has been resolved as now will not be a good time to raise the rates.
“There should also not be any disruption to the water supply to consumers. We want the federal government to step in and postpone the increase,” he said, calling for federal and the state governments to put aside their political differences to discuss the matter.
When contacted, a spokesman at the National Water Services Commission asked for queries to be directed to the Energy, Water and Communications Ministry.
By SIM LEOI LEOI
PETALING JAYA: Selangor has promised to challenge any decision by the federal government to increase its water tariff come Wednesday.
Selangor water review panel member Charles Santiago said this was because any tariff increase needed the state government’s consent.
“The state government is a party to the concessionaire agreements signed with the water companies.
“Although the federal government has the golden share, it will still need our consent if it plans to implement the increase.
“The state government is prepared to challenge the decision in court,” he said Monday.
Asked if Selangor would ask the federal government to defer any tariff increase, set to come into effect on Wednesday under the terms of the original concessionaire, Santiago said there was no need for any postponement.
“We have already given the federal government an offer. Why don’t they look at it?” he asked.
Selangor had earlier proposed to the federal government that the concession with the water companies be terminated as some of the firms had violated their agreements and let the state take over the assets.
However, the federal government had told Selangor that it was not in the position to terminate the agreements.
Santiago was commenting on a statement by Energy, Water and Communications Minister by Datuk Shaziman Abu Mansor that it would put forward a Cabinet paper on the matter of water tariff increase this Wednesday.
Selangor must undertake a water restructuring exercise by Tuesday, failing which tariffs will rise by 37% for 1.5mil consumers in Selangor, Putrajaya and the Federal Territory under the orginal concessionaire agreement.
However, if there is any increase, it should be around 31%, as suggested by the Auditor-General Department.
The federal government had earlier deferred the increase, which was supposed to have taken effect on Jan 1.
It had also written to Selangor, informing it of the increase this Wednesday as well as for the compensation to be paid for the three-month deferment from Dec 31.
“Selangor has responded to the letter where we told the federal government that our original proposal stands,” said Santiago.
When contacted, a senior official with the Selangor Mentri Besar Tan Sri Khalid Ibrahim said he would issue a statement on the matter either Tuesday or Wednesday as the latter was still in Sarawak for the Batang Ai by-election.
“Selangor will disagree with any tariff increase. This shouldn’t have happened and we have a legal basis for our views,” said the official.
Forum Air Malaysia secretary Piara Pakaran Subramaniam said that, with just a day to go before the increase, none of the consumer groups in its coalition had been briefed on the progress or whether consumers would be spared the tariff increase.
“Whatever it is, we want the tariff increase put off until the matter of the takeover of Selangor water assets has been resolved as now will not be a good time to raise the rates.
“There should also not be any disruption to the water supply to consumers. We want the federal government to step in and postpone the increase,” he said, calling for federal and the state governments to put aside their political differences to discuss the matter.
When contacted, a spokesman at the National Water Services Commission asked for queries to be directed to the Energy, Water and Communications Ministry.
Private docs: Proper regulatory set up needed
STAR, March 30, 2009
PETALING JAYA: A national doctors’ medical association is concerned that Malaysia is rushing to liberalise its healthcare services without a proper regulatory framework, which will affect the overall healthcare system.
The Federation of Private Medical Practioner’s Association of Malaysia (FPMPAM) believes that although the basic aspects of globalisation are inherently good and in some ways inevitable, the Malaysian healthcare services sector is unprepared for this.
FPMPAM’s president Dr. Steven Chow said that ASEAN needs to harmonise healthcare standards (such as in the EU) before opening up market access. However, this should only be done gradually.
“Currently, there is no suitable and regulatory framework to prevent the exploitation of the national healthcare market by foreign businesses,” he said.
“In this vulnerable regulatory environment, we can expect more resources to be poured into the more lucrative aspects of healthcare.
“This will jeopardise the standard of healthcare in areas such as rural and preventative care,” he added.
Dr. Chow said that without proper safeguards, the move would exacerbate Malaysia’s healthcare woes as market forces and business sense was unlikely to encourage foreigners to start their business in small towns, where the problem of shortage and poor access to healthcare services was more apparent.
“But most importantly, we cannot rush this process, especially if it is for the sake of boosting medical tourism. Healthcare is not another business commodity,” he said.
“We need to ensure that this move will benefit the people of Malaysia and not just business,” said Chow.
“There are too many unanswered questions on the macro and micro levels,” he said.
“Right now, patients are still not aware of the proper channels to go should they be shortchanged by a foreign doctor.”
Another concern raised was about how to ensure that these doctors maintained the standard as services in delivery and in other crucial areas such as local socio-cultural norms and doctor-patient communication.
PETALING JAYA: A national doctors’ medical association is concerned that Malaysia is rushing to liberalise its healthcare services without a proper regulatory framework, which will affect the overall healthcare system.
The Federation of Private Medical Practioner’s Association of Malaysia (FPMPAM) believes that although the basic aspects of globalisation are inherently good and in some ways inevitable, the Malaysian healthcare services sector is unprepared for this.
FPMPAM’s president Dr. Steven Chow said that ASEAN needs to harmonise healthcare standards (such as in the EU) before opening up market access. However, this should only be done gradually.
“Currently, there is no suitable and regulatory framework to prevent the exploitation of the national healthcare market by foreign businesses,” he said.
“In this vulnerable regulatory environment, we can expect more resources to be poured into the more lucrative aspects of healthcare.
“This will jeopardise the standard of healthcare in areas such as rural and preventative care,” he added.
Dr. Chow said that without proper safeguards, the move would exacerbate Malaysia’s healthcare woes as market forces and business sense was unlikely to encourage foreigners to start their business in small towns, where the problem of shortage and poor access to healthcare services was more apparent.
“But most importantly, we cannot rush this process, especially if it is for the sake of boosting medical tourism. Healthcare is not another business commodity,” he said.
“We need to ensure that this move will benefit the people of Malaysia and not just business,” said Chow.
“There are too many unanswered questions on the macro and micro levels,” he said.
“Right now, patients are still not aware of the proper channels to go should they be shortchanged by a foreign doctor.”
Another concern raised was about how to ensure that these doctors maintained the standard as services in delivery and in other crucial areas such as local socio-cultural norms and doctor-patient communication.
Govt Bears RM286-mln Compensation For Postponing Toll Hike
BERNAMA, March 30, 2009 18:10 PM
KUALA LUMPUR, March 30 (Bernama) -- The government has to bear compensation payment of RM286.38 million to highway concessionaires for postponing by one year a scheduled increase of toll rates on five stretches of highway, the Dewan Negara was told Monday.
Deputy Works Minister Datuk Yong Khoon Seng said the toll rates on the North-South Expressway (PLUS), Sistem Penyuraian Trafik Kuala Lumpur Barat (SPRINT) highway, Ampang-Kuala Lumpur Elevated Highway (AKLEH), Sungai Besi (BESRAYA) highway and New Pantai Expressway (NPE) were retained until the end of this year.
"As a result of the postponement of the increase in the toll rates for a year, the government has to bear the compensation payment to the highway concessionaires, according to the terms of the concession agreements," he said when replying to a question from Senator Muhamad Yusof Husin.
The Cabinet had decided last month that the proposed increase in the toll rates on the five stretches of highway effective March 1 this year be postponed for a year.
Yong said the government would look at a long-term solution besides studying the finance model and implication when considering the issue of toll rate increases in the future.
Meanwhile, Human Resource Minister Datuk Dr S Subramaniam said the ministry had launched a study towards the setting up the Relief Fund For Loss of Employment to help retrenched workers deprived of retrenchment benefits.
"The proposed fund will benefit those workers who do not get compensation because their employers are unable to pay or cannot be traced," he said when replying to a question from Senator Prof Datuk Dr Ismail Md Salleh.
KUALA LUMPUR, March 30 (Bernama) -- The government has to bear compensation payment of RM286.38 million to highway concessionaires for postponing by one year a scheduled increase of toll rates on five stretches of highway, the Dewan Negara was told Monday.
Deputy Works Minister Datuk Yong Khoon Seng said the toll rates on the North-South Expressway (PLUS), Sistem Penyuraian Trafik Kuala Lumpur Barat (SPRINT) highway, Ampang-Kuala Lumpur Elevated Highway (AKLEH), Sungai Besi (BESRAYA) highway and New Pantai Expressway (NPE) were retained until the end of this year.
"As a result of the postponement of the increase in the toll rates for a year, the government has to bear the compensation payment to the highway concessionaires, according to the terms of the concession agreements," he said when replying to a question from Senator Muhamad Yusof Husin.
The Cabinet had decided last month that the proposed increase in the toll rates on the five stretches of highway effective March 1 this year be postponed for a year.
Yong said the government would look at a long-term solution besides studying the finance model and implication when considering the issue of toll rate increases in the future.
Meanwhile, Human Resource Minister Datuk Dr S Subramaniam said the ministry had launched a study towards the setting up the Relief Fund For Loss of Employment to help retrenched workers deprived of retrenchment benefits.
"The proposed fund will benefit those workers who do not get compensation because their employers are unable to pay or cannot be traced," he said when replying to a question from Senator Prof Datuk Dr Ismail Md Salleh.
Selangor Water Issue To Be Referred To Cabinet
BERNAMA, March 30, 2009
KUALA LUMPUR, MAR 30 (Bernama)-- The unresolved issue of the Selangor Government's proposal to restructure the water industry in the state will now be referred to the Cabinet for a decision.
Energy, Water and Communications Minister, Datuk Shahziman Abu Mansor, said a paper on the issue has been prepared and would be tabled at the Cabinet meeting on Wednesday.
The contents of the paper were not revealed.
He said the Federal Government was concerned as the unresolved issue would entail a penalty whereby some 1.5 million consumers in Selangor, Kuala Lumpur and Putrajaya would have to pay an extra 37 per cent in water tariff.
This is because of the existing 30-year agreements between the state government and the four water concessioners in the state -- SYABAS, Puncak Niaga, SPLASH and Abas -- which expire in 2034, allow a tariff increase periodically.
The latest was supposed to be on Jan. 1, 2009
The present average tariff is RM1.39 per cu metre and this would be increased to RM1.90
However, this was deferred to March 31, as the Selangor Government has proposed to buy over the assets of all the four concessioners thereby automatically abrogating the agreements and taking over the management of the water industry in the state and thus restrucuring its tariffs.
Negotiations between the parties were now stalled as they were not agreeable to the quantum of the payment for the assets which included main pipes, water treatment plants and water catchment areas.
The state government has offered RM5.1 billion for the assets.
Shahziman said the Federal Government was still open to any counter proposals.
"The ball is now in the state government's court," he added
Meanwhile, the Malaysian Water Forum, a non-government organisation, hoped that there would be no tariff increase while negotiations were on-going.
Its secretary-general, S. Piarapakaran, told Bernama the issue was causing much concern to consumers as they were afraid of an increase which would burden them especially during the economic downturn.
He said the Forum wanted the Federal Government to take over the assests through the Pengurusan Aset Air Bhd, a company under the Finance Minister Inc.
Piarapakaran said Johor, which also faced the same predicament as Selangor, managed to resolve it.
"We are sure if Selangor is sincere in wanting to resolve the issue, it can be done," he said.
-- BERNAMA
KUALA LUMPUR, MAR 30 (Bernama)-- The unresolved issue of the Selangor Government's proposal to restructure the water industry in the state will now be referred to the Cabinet for a decision.
Energy, Water and Communications Minister, Datuk Shahziman Abu Mansor, said a paper on the issue has been prepared and would be tabled at the Cabinet meeting on Wednesday.
The contents of the paper were not revealed.
He said the Federal Government was concerned as the unresolved issue would entail a penalty whereby some 1.5 million consumers in Selangor, Kuala Lumpur and Putrajaya would have to pay an extra 37 per cent in water tariff.
This is because of the existing 30-year agreements between the state government and the four water concessioners in the state -- SYABAS, Puncak Niaga, SPLASH and Abas -- which expire in 2034, allow a tariff increase periodically.
The latest was supposed to be on Jan. 1, 2009
The present average tariff is RM1.39 per cu metre and this would be increased to RM1.90
However, this was deferred to March 31, as the Selangor Government has proposed to buy over the assets of all the four concessioners thereby automatically abrogating the agreements and taking over the management of the water industry in the state and thus restrucuring its tariffs.
Negotiations between the parties were now stalled as they were not agreeable to the quantum of the payment for the assets which included main pipes, water treatment plants and water catchment areas.
The state government has offered RM5.1 billion for the assets.
Shahziman said the Federal Government was still open to any counter proposals.
"The ball is now in the state government's court," he added
Meanwhile, the Malaysian Water Forum, a non-government organisation, hoped that there would be no tariff increase while negotiations were on-going.
Its secretary-general, S. Piarapakaran, told Bernama the issue was causing much concern to consumers as they were afraid of an increase which would burden them especially during the economic downturn.
He said the Forum wanted the Federal Government to take over the assests through the Pengurusan Aset Air Bhd, a company under the Finance Minister Inc.
Piarapakaran said Johor, which also faced the same predicament as Selangor, managed to resolve it.
"We are sure if Selangor is sincere in wanting to resolve the issue, it can be done," he said.
-- BERNAMA
Friday, March 20, 2009
MB: State can challenge Federal Govt over water issue
STAR, Saturday March 21, 2009
By YVONNE TAN
THE Selangor government reiterates that it can legally challenge the Federal Government over the water restructuring issue in the state.
“Yes, if we want to, we can. We would like to remind the Federal Government that we have an enactment in Selangor to protect the rights of water users in the state,” Mentri Besar Tan Sri Abdul Khalid Ibrahim said after the Selangor Business Council meeting in Shah Alam yesterday.
However, Khalid says he would prefer if the matter is settled “amicably”.
“If it (the issue) reaches a stalemate, then we will exercise our rights,” he says.
“The Federal Government had agreed that the restructuring of the water industry be done through a state vehicle.
“Initially, they (the concessionaires) wanted to go with us but the Federal Government said it wanted to negotiate with them, bypassing us. The rights of the state must be respected,” Khalid says.
The state had, on Feb 13, offered RM5.71bil to the four privatised water service providers – Puncak Niaga Sdn Bhd, Syarikat Bekalan Air Sdn Bhd, Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) and Konsortium Abass Sdn Bhd – for the water assets in the state as part of the national water restructuring exercise.
But on Feb 18, two days before the deadline for them to respond to the state’s offer, the Energy, Water and Communications Ministry directed Pengurusan Aset Air Bhd (PAAB) to negotiate directly with the concessionaries. On Feb 27, it was reported that PAAB would soon make an offer worth about RM5bil to buy all the water assets from the four water concessionaires in Selangor.
Whatever the disagreements in Selangor, a deal needs to be formalised by month end or the concessionaires can impose a 37% tariff hike on water in the state.
“The issue of time is not a major issue,” Khalid says.
“This is an issue of federalism, which means the setting up of the federal and state governments. The rights of water, the rights at land are provided to the state. This issue may not happen if it falls under the same party,” he says.
“Puncak, Abass and Splash will only accept the Federal Government’s offer if the offer price is favourable,” an analyst says.
“To adopt the one-time book value purchase price (the benchmark price in previous deals), PAAB will have to come up with a more comprehensive offer for Puncak and the other concessionaires such as lower lease payments (for the assets taken over) as part of the total transaction, so that the entire value to assume the operator’s role would be similar to the concessionaires’ income streams,” the analyst says.
On another note, Khalid says he expects the local economy to improve by 2010.
“This is if the global economic conditions stabilise by year-end; if not, we may be looking at Malaysia’s economy being impacted for the next two to three years,” he says.
By YVONNE TAN
THE Selangor government reiterates that it can legally challenge the Federal Government over the water restructuring issue in the state.
“Yes, if we want to, we can. We would like to remind the Federal Government that we have an enactment in Selangor to protect the rights of water users in the state,” Mentri Besar Tan Sri Abdul Khalid Ibrahim said after the Selangor Business Council meeting in Shah Alam yesterday.
However, Khalid says he would prefer if the matter is settled “amicably”.
“If it (the issue) reaches a stalemate, then we will exercise our rights,” he says.
“The Federal Government had agreed that the restructuring of the water industry be done through a state vehicle.
“Initially, they (the concessionaires) wanted to go with us but the Federal Government said it wanted to negotiate with them, bypassing us. The rights of the state must be respected,” Khalid says.
The state had, on Feb 13, offered RM5.71bil to the four privatised water service providers – Puncak Niaga Sdn Bhd, Syarikat Bekalan Air Sdn Bhd, Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) and Konsortium Abass Sdn Bhd – for the water assets in the state as part of the national water restructuring exercise.
But on Feb 18, two days before the deadline for them to respond to the state’s offer, the Energy, Water and Communications Ministry directed Pengurusan Aset Air Bhd (PAAB) to negotiate directly with the concessionaries. On Feb 27, it was reported that PAAB would soon make an offer worth about RM5bil to buy all the water assets from the four water concessionaires in Selangor.
Whatever the disagreements in Selangor, a deal needs to be formalised by month end or the concessionaires can impose a 37% tariff hike on water in the state.
“The issue of time is not a major issue,” Khalid says.
“This is an issue of federalism, which means the setting up of the federal and state governments. The rights of water, the rights at land are provided to the state. This issue may not happen if it falls under the same party,” he says.
“Puncak, Abass and Splash will only accept the Federal Government’s offer if the offer price is favourable,” an analyst says.
“To adopt the one-time book value purchase price (the benchmark price in previous deals), PAAB will have to come up with a more comprehensive offer for Puncak and the other concessionaires such as lower lease payments (for the assets taken over) as part of the total transaction, so that the entire value to assume the operator’s role would be similar to the concessionaires’ income streams,” the analyst says.
On another note, Khalid says he expects the local economy to improve by 2010.
“This is if the global economic conditions stabilise by year-end; if not, we may be looking at Malaysia’s economy being impacted for the next two to three years,” he says.
Wednesday, March 4, 2009
Don't politicise water issue, state govt told
New Straits Times, 4 March 2009
KUALA LUMPUR: The Selangor government has been told not to politicise the Federal Government's plan to restructure water assets in the state but instead to put the interests of consumers first.
Energy, Water and Communications Minister Datuk Shaziman Abu Mansor said the state government should not use the water issue for political gain because "at the end of the day, providing cheaper water for consumers is what matters".
"The problem is only with the Selangor government. The Pakatan Rakyat governments in Kelantan and Kedah want us to speed up acquisitions so that people can get water at a reasonable rate," he said at a media briefing yesterday on the restructuring of the water service industry in Selangor.
Early this year, the Selangor government formed a panel to review the restructuring of the water service industry in the state and for the Federal Government's plan to acquire water assets in the state.
The panel had on four occasions postponed its meeting with representatives of the ministry, Pengurusan Aset Air Bhd (PAAB) and the National Water Services Commission (Span). The last postponement was on Feb 14.
The meeting was to have ironed out details of the restructuring, including negotiations to take over the state assets in the industry, namely piping systems and 27 treatment plants worth about RM9 billion.
PAAB has now moved in to negotiate directly with the four water concessionaires in the state -- Puncak Niaga (M) Sdn Bhd, Syarikat Air Selangor Sdn Bhd (Splash), Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) and Konsortium ABASS Sdn Bhd (Abass).
Puncak Niaga and Splash own a water treatment plant each in the state.
Under the initial restructuring plan, the Selangor government, via state-controlled Kumpulan Darul Ehsan Bhd (KDEB), would take over the concessions and assets to be handed over to PAAB, a wholly-owned company under the Ministry of Finance Inc.
The assets would then be leased back to KDEB as the sole licensed operator. This is because after the restructuring, there would no longer be concessionaires. Instead, licence will be issued to the operator which would be reviewed by the Federal Government every few years.
On Feb 20, the four concessionaires rejected an offer by the Selangor government to take over their assets and concessions for RM5.7 billion (RM1.1 billion for concessions and RM4.6 billion for assets).
Among the reasons cited in a news report was that the offer was lower than expected.
The Energy, Water and Communications Ministry had set March 31 as the deadline for the deal to be finalised.
Shariman questioned the need for KDEB to take over the concessions and assets and then hand them back to PAAB.
He said the PAAB offer did not compete with the state government's offer to the concessionaires as it involved only the assets portion, which the Selangor government had agreed to sell to PAAB at its acquisition price.
"PAAB's offer would be based on principles of fairness, transparency and affordability to protect consumer interests. The value to be determined will be based on established accounting principles and financial practices and to be carried out by an independent auditor appointed by PAAB."
Shariman said he would not invoke the Water Service Industry Act 2006 to pressure the concessionaires to accept the state government's offer.
The Federal Government not only had to consider the interests of consumers but also that of bondholders and lenders who had invested in the water industry as well as shareholders of water operators, he added. -- Bernama
KUALA LUMPUR: The Selangor government has been told not to politicise the Federal Government's plan to restructure water assets in the state but instead to put the interests of consumers first.
Energy, Water and Communications Minister Datuk Shaziman Abu Mansor said the state government should not use the water issue for political gain because "at the end of the day, providing cheaper water for consumers is what matters".
"The problem is only with the Selangor government. The Pakatan Rakyat governments in Kelantan and Kedah want us to speed up acquisitions so that people can get water at a reasonable rate," he said at a media briefing yesterday on the restructuring of the water service industry in Selangor.
Early this year, the Selangor government formed a panel to review the restructuring of the water service industry in the state and for the Federal Government's plan to acquire water assets in the state.
The panel had on four occasions postponed its meeting with representatives of the ministry, Pengurusan Aset Air Bhd (PAAB) and the National Water Services Commission (Span). The last postponement was on Feb 14.
The meeting was to have ironed out details of the restructuring, including negotiations to take over the state assets in the industry, namely piping systems and 27 treatment plants worth about RM9 billion.
PAAB has now moved in to negotiate directly with the four water concessionaires in the state -- Puncak Niaga (M) Sdn Bhd, Syarikat Air Selangor Sdn Bhd (Splash), Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) and Konsortium ABASS Sdn Bhd (Abass).
Puncak Niaga and Splash own a water treatment plant each in the state.
Under the initial restructuring plan, the Selangor government, via state-controlled Kumpulan Darul Ehsan Bhd (KDEB), would take over the concessions and assets to be handed over to PAAB, a wholly-owned company under the Ministry of Finance Inc.
The assets would then be leased back to KDEB as the sole licensed operator. This is because after the restructuring, there would no longer be concessionaires. Instead, licence will be issued to the operator which would be reviewed by the Federal Government every few years.
On Feb 20, the four concessionaires rejected an offer by the Selangor government to take over their assets and concessions for RM5.7 billion (RM1.1 billion for concessions and RM4.6 billion for assets).
Among the reasons cited in a news report was that the offer was lower than expected.
The Energy, Water and Communications Ministry had set March 31 as the deadline for the deal to be finalised.
Shariman questioned the need for KDEB to take over the concessions and assets and then hand them back to PAAB.
He said the PAAB offer did not compete with the state government's offer to the concessionaires as it involved only the assets portion, which the Selangor government had agreed to sell to PAAB at its acquisition price.
"PAAB's offer would be based on principles of fairness, transparency and affordability to protect consumer interests. The value to be determined will be based on established accounting principles and financial practices and to be carried out by an independent auditor appointed by PAAB."
Shariman said he would not invoke the Water Service Industry Act 2006 to pressure the concessionaires to accept the state government's offer.
The Federal Government not only had to consider the interests of consumers but also that of bondholders and lenders who had invested in the water industry as well as shareholders of water operators, he added. -- Bernama
Sunday, March 1, 2009
Water restructuring in S’gor should not be money-making
STAR, March 1, 2009
By ZALINAH NOORDIN
PETALING JAYA: Restructuring efforts of the water services industry in Selangor should not be a money-making process, said Bar Council vice-president Ragunath Kesavan.
Instead, the State Government and the Federal Government should seek ways to resolve the matter in the best interest of the public. He was referring to the 37percent tariff hike should the issue not be settled before March 31.
“Both parties must sit down and discuss this, as the most important thing is whether they can provide the best service at the best cost,” he said.
Kesavan said that the public should be involved in the whole process. He added that when the industry was privatised, there was no proper tender system and this had led to the current disarray.
“The Federal Government, not the State Government, should have led the negotiations for the re-nationalisation of the water assets from the start.
“This is how it’s done in most other states that have embarked on this venture, like Malacca and Negri Sembilan,” he said.
The current situation leaves either consumers burdened with a higher water bill in such difficult times or the State Government pays some RM38mil a month to compensate the concessionaires, he said.
The four concessionaires; Syarikat Bekalan Air Selangor (Syabas), Puncak Niaga (M) Sdn Bhd, Syarikan Pengeluar Air Selangor Sdn Bhd and Konsortium ABBAS Sdn Bhd also have different takes on the matter.
The first three companies had rejected the state’s offer of RM4.6bil for all the water assets owned by them citing it was too low an offer.
Meanwhile, PJ Utara MP Tony Pua, who is also a member of Selangor’s Water Review Panel, shared the same view on the general unawareness of the public in Selangor regarding the water issue.
“They should be made aware of the situation and they too should take note as it will affect them should there be an increase in their bills,” he said.
He added that the review panel would hold more briefing sessions in various areas of Selangor to disseminate information on the issue.
“Their opinions should also be accounted for as they are the ones who will have to live with the changes,” added Pua.
According to him, by the end of 2013, water tariffs in Selangor could be decreased as much as 25% if the state took over the water industry.
Not only would the 20 cubic metres of free water remain but there would be a 10% decrease in tariff this year.
This would be followed by a 20% decrease in the second term in 2011, and a further 25% decrease during the third term in 2013.
“Look at Penang. We should really emulate them as it has one of the lowest water rates in the country and the State Government is running the show,” he said.
Pua said that the Federal Government’s offer to buy over all the water assets from the four water concessionaires in Selangor shows that they only have sympathy for the concessionaires and not the Selangor people.
“Of course their reason would be that the companies have invested billions of ringgit in providing water supply in Selangor and not doing well but what about people having to pay more?” claimed Pua.
By ZALINAH NOORDIN
PETALING JAYA: Restructuring efforts of the water services industry in Selangor should not be a money-making process, said Bar Council vice-president Ragunath Kesavan.
Instead, the State Government and the Federal Government should seek ways to resolve the matter in the best interest of the public. He was referring to the 37percent tariff hike should the issue not be settled before March 31.
“Both parties must sit down and discuss this, as the most important thing is whether they can provide the best service at the best cost,” he said.
Kesavan said that the public should be involved in the whole process. He added that when the industry was privatised, there was no proper tender system and this had led to the current disarray.
“The Federal Government, not the State Government, should have led the negotiations for the re-nationalisation of the water assets from the start.
“This is how it’s done in most other states that have embarked on this venture, like Malacca and Negri Sembilan,” he said.
The current situation leaves either consumers burdened with a higher water bill in such difficult times or the State Government pays some RM38mil a month to compensate the concessionaires, he said.
The four concessionaires; Syarikat Bekalan Air Selangor (Syabas), Puncak Niaga (M) Sdn Bhd, Syarikan Pengeluar Air Selangor Sdn Bhd and Konsortium ABBAS Sdn Bhd also have different takes on the matter.
The first three companies had rejected the state’s offer of RM4.6bil for all the water assets owned by them citing it was too low an offer.
Meanwhile, PJ Utara MP Tony Pua, who is also a member of Selangor’s Water Review Panel, shared the same view on the general unawareness of the public in Selangor regarding the water issue.
“They should be made aware of the situation and they too should take note as it will affect them should there be an increase in their bills,” he said.
He added that the review panel would hold more briefing sessions in various areas of Selangor to disseminate information on the issue.
“Their opinions should also be accounted for as they are the ones who will have to live with the changes,” added Pua.
According to him, by the end of 2013, water tariffs in Selangor could be decreased as much as 25% if the state took over the water industry.
Not only would the 20 cubic metres of free water remain but there would be a 10% decrease in tariff this year.
This would be followed by a 20% decrease in the second term in 2011, and a further 25% decrease during the third term in 2013.
“Look at Penang. We should really emulate them as it has one of the lowest water rates in the country and the State Government is running the show,” he said.
Pua said that the Federal Government’s offer to buy over all the water assets from the four water concessionaires in Selangor shows that they only have sympathy for the concessionaires and not the Selangor people.
“Of course their reason would be that the companies have invested billions of ringgit in providing water supply in Selangor and not doing well but what about people having to pay more?” claimed Pua.
Panel claims Selangor water tariffs can be reduced by 25%
STAR, February 27, 2009
SHAH ALAM: By the end of 2013, water tariffs in Selangor can be decreased as much as 25% if the state takes over the water sector, said a review panel appointed by the state government.
Not only would the 20 cubic metres of free water remain; but there would be a 10% decrease in tariff this year, panel member and PJ Utara MP Tony Pua told a media briefing yesterday.
This would be followed by a 20% decrease in the second term in 2011, and a further 25% decrease during the third term in 2013.
Other panel members were Klang MP Charles Santiago, academic Dr Subramaniam Pillay, lawyer Fahda Nur Ahmad Kamar and Selayang MP William Leong.
Santiago said eliminating excess spending by the state allowed for the water tariff to go down.
The panel also said the Federal Government, having initiated direct talks with the four water concessionaires in the state, must not exclude the state government which owned 70% to 80% of Selangor’s water assets.
Meanwhile, at a separate function, Syabas executive chairman Tan Sri Rozali Ismail, when asked about his alleged seven-figure remuneration, said: “If they want professionals to run the company, they will have to pay.”
He was speaking to reporters after signing a Memorandum of Understanding between Syabas and the Construction Industrial Development Board yesterday.
SHAH ALAM: By the end of 2013, water tariffs in Selangor can be decreased as much as 25% if the state takes over the water sector, said a review panel appointed by the state government.
Not only would the 20 cubic metres of free water remain; but there would be a 10% decrease in tariff this year, panel member and PJ Utara MP Tony Pua told a media briefing yesterday.
This would be followed by a 20% decrease in the second term in 2011, and a further 25% decrease during the third term in 2013.
Other panel members were Klang MP Charles Santiago, academic Dr Subramaniam Pillay, lawyer Fahda Nur Ahmad Kamar and Selayang MP William Leong.
Santiago said eliminating excess spending by the state allowed for the water tariff to go down.
The panel also said the Federal Government, having initiated direct talks with the four water concessionaires in the state, must not exclude the state government which owned 70% to 80% of Selangor’s water assets.
Meanwhile, at a separate function, Syabas executive chairman Tan Sri Rozali Ismail, when asked about his alleged seven-figure remuneration, said: “If they want professionals to run the company, they will have to pay.”
He was speaking to reporters after signing a Memorandum of Understanding between Syabas and the Construction Industrial Development Board yesterday.
Toll hike postponed indefinitely
STAR, February 27, 2009
By ROYCE CHEAH and MAZWIN NIK ANIS
KUALA LUMPUR: The toll hike for five major highways that was set to take place on Sunday has been postponed indefinitely.
Works Minister Datuk Seri Mohd Zin Mohammed said the decision was made due to the negative public reaction and the current economic situation.
“When the announcement was made, there was negative public reaction. As a result, the Cabinet decided today (Friday) to postpone the toll hike indefinitely,” he told a press conference at the Works Ministry here on Friday.
The toll hike, had it taken place, would have increased toll rates on the North-South Expressway by 0.68sen per km; the Sprint Highway by between 30sen and 50sen; the Sungai Besi Highway (Besraya) by 10sen; the Ampang-Kuala Lmpur Elevated Highway (Akleh) by 50sen and the New Pantai Expressway (NPE) by 40sen.
The announcement met with strong opposition from consumer groups, lorry and bus associations as well as Members of Parliament from both sides of the House.
They said it was not a good time to increase toll rates considering the economic situation.
Prime Minister Datuk Seri Abdullah Ahmad Badawi, who is in Thailand for the Asean Defence Ministers meeting, had also asked for the decision to be reconsidered.
Mohd Zin said as a result of the toll hike cancellation, the Government would have to fork out an additional RM287mil to pay the concessionaires - PLUS (RM195mil), Sprint (RM36mil), Akleh (RM27mil), Besraya (RM9mil) and NPE (RM20mil) - for the period Jan 1 to Dec 31 this year.
Mohd Zin said RM245mil was already paid to PLUS, Akleh and Sprint in the form of compensation due to a scheduled increase in January last year that did not take place.
“The Finance Ministry will prepare the compensation as stipulated in the concession agreement.”
Mohd Zin said the money being used for compensation was also the public’s money that could have been used to implement other projects that could benefit the entire country.
Meanwhile, in Putrajaya, Deputy Prime Minister Datuk Seri Najib Tun Razak said the toll hike postponement was not meant to woo voters in the three upcoming by-elections.
He said the toll hike was put off because the public protested and was unhappy with the hike, even though the decision meant that the government would have to fork out a substantial amount of money to compensate the five highway concessionaires.
“This is not an election gimmick. This is not to attract voters (to support Barisan Nasional) and they have our undertaking that it (toll rates) will not be increased once the by-elections are over,” the Deputy Prime Minister told reporters on Friday.
Three by-elections will be held within the next few months - in Bukit Gantang (Perak), Bukit Selambau (Kedah) and also in Batang Ai (Sarawak).
The Bukit Gantang parliamentary seat fell vacant when its MP, Roslan Shahrum of PAS died on Feb 9 while the Bukit Selambau state seat is empty when assemblyman V. Aurumugam resigned on Feb 8. The by-elections for the two constituencies will be held on April 7.
The Batang Ai state seat in Sarawak is vacant following the death of its assemblyman Datuk Dublin Unting and the Election Commission will decide on polling date for this seat on March 4.
Najib also confirmed that the postponement was indefinite.
“We do not know for how long as it will depend on our affordability (to pay compensation). We will make whatever necessary decision when the time comes.
“But by not increasing the toll rates, the government has to fork out an additional RM500million a year and that is tax payers’ money,” he said.
Najib said the increase announced by the Works Ministry earlier was a “moderate increase” and the government had to pay more compensation if there was no increase at all.
“The amount will be substantial and it will add up over the years. But the public is so averse to any increase; which I understand.
“So the government decided not to increase but this means we will have to set aside more money for compensation,” he said.
On Thursday, Mohd Zin announced that road users would have to pay a higher toll when using the North-South Expressway (PLUS), the Sprint/Kerinchi/Damansara Link highways, Ampang-Kuala Lumpur Expressway (AKLEH), Sungai Besi Highway and the New Pantai Expressway (NPE).
For the PLUS highway, it was a 5% increase. This meant that toll charges from Bukit Kayu Hitam in Kedah to Kempas in Johor would increase from RM108 to RM113.40.
A trip from Kuala Lumpur to Ipoh would increase from RM26.50 to RM27.90.
For the Sprint/Kerinchi/Damansara Link highways, it was an increase of between 30sen and 50sen.
The Sungai Besi Highway was to see an increase of 10sen, while the AKLEH and NPE were to be increased by 50sen and 40sen respectively.
Mohd Zin had said the increase was minimal and hoped the public understood that the increase was stipulated in the concession agreements that the Government had signed.
Prime Minister Datuk Seri Abdullah Ahmad Badawi, however, urged for the decision to increase the toll rates to be reconsidered.
He said the matter will be discussed in the Cabinet meeting Friday, which will be chaired by Deputy Prime Minister Datuk Seri Najib Tun Razak.
“People are having difficulties. The situation is not right for a toll hike. I feel that this matter needs to be discussed again in the Cabinet.
”The decision may come in the form of measures that will included in the second stimulus package or through some other measures,” he had said in Pattaya, where he was attending the Asean Defence Minister’s Meeting.
By ROYCE CHEAH and MAZWIN NIK ANIS
KUALA LUMPUR: The toll hike for five major highways that was set to take place on Sunday has been postponed indefinitely.
Works Minister Datuk Seri Mohd Zin Mohammed said the decision was made due to the negative public reaction and the current economic situation.
“When the announcement was made, there was negative public reaction. As a result, the Cabinet decided today (Friday) to postpone the toll hike indefinitely,” he told a press conference at the Works Ministry here on Friday.
The toll hike, had it taken place, would have increased toll rates on the North-South Expressway by 0.68sen per km; the Sprint Highway by between 30sen and 50sen; the Sungai Besi Highway (Besraya) by 10sen; the Ampang-Kuala Lmpur Elevated Highway (Akleh) by 50sen and the New Pantai Expressway (NPE) by 40sen.
The announcement met with strong opposition from consumer groups, lorry and bus associations as well as Members of Parliament from both sides of the House.
They said it was not a good time to increase toll rates considering the economic situation.
Prime Minister Datuk Seri Abdullah Ahmad Badawi, who is in Thailand for the Asean Defence Ministers meeting, had also asked for the decision to be reconsidered.
Mohd Zin said as a result of the toll hike cancellation, the Government would have to fork out an additional RM287mil to pay the concessionaires - PLUS (RM195mil), Sprint (RM36mil), Akleh (RM27mil), Besraya (RM9mil) and NPE (RM20mil) - for the period Jan 1 to Dec 31 this year.
Mohd Zin said RM245mil was already paid to PLUS, Akleh and Sprint in the form of compensation due to a scheduled increase in January last year that did not take place.
“The Finance Ministry will prepare the compensation as stipulated in the concession agreement.”
Mohd Zin said the money being used for compensation was also the public’s money that could have been used to implement other projects that could benefit the entire country.
Meanwhile, in Putrajaya, Deputy Prime Minister Datuk Seri Najib Tun Razak said the toll hike postponement was not meant to woo voters in the three upcoming by-elections.
He said the toll hike was put off because the public protested and was unhappy with the hike, even though the decision meant that the government would have to fork out a substantial amount of money to compensate the five highway concessionaires.
“This is not an election gimmick. This is not to attract voters (to support Barisan Nasional) and they have our undertaking that it (toll rates) will not be increased once the by-elections are over,” the Deputy Prime Minister told reporters on Friday.
Three by-elections will be held within the next few months - in Bukit Gantang (Perak), Bukit Selambau (Kedah) and also in Batang Ai (Sarawak).
The Bukit Gantang parliamentary seat fell vacant when its MP, Roslan Shahrum of PAS died on Feb 9 while the Bukit Selambau state seat is empty when assemblyman V. Aurumugam resigned on Feb 8. The by-elections for the two constituencies will be held on April 7.
The Batang Ai state seat in Sarawak is vacant following the death of its assemblyman Datuk Dublin Unting and the Election Commission will decide on polling date for this seat on March 4.
Najib also confirmed that the postponement was indefinite.
“We do not know for how long as it will depend on our affordability (to pay compensation). We will make whatever necessary decision when the time comes.
“But by not increasing the toll rates, the government has to fork out an additional RM500million a year and that is tax payers’ money,” he said.
Najib said the increase announced by the Works Ministry earlier was a “moderate increase” and the government had to pay more compensation if there was no increase at all.
“The amount will be substantial and it will add up over the years. But the public is so averse to any increase; which I understand.
“So the government decided not to increase but this means we will have to set aside more money for compensation,” he said.
On Thursday, Mohd Zin announced that road users would have to pay a higher toll when using the North-South Expressway (PLUS), the Sprint/Kerinchi/Damansara Link highways, Ampang-Kuala Lumpur Expressway (AKLEH), Sungai Besi Highway and the New Pantai Expressway (NPE).
For the PLUS highway, it was a 5% increase. This meant that toll charges from Bukit Kayu Hitam in Kedah to Kempas in Johor would increase from RM108 to RM113.40.
A trip from Kuala Lumpur to Ipoh would increase from RM26.50 to RM27.90.
For the Sprint/Kerinchi/Damansara Link highways, it was an increase of between 30sen and 50sen.
The Sungai Besi Highway was to see an increase of 10sen, while the AKLEH and NPE were to be increased by 50sen and 40sen respectively.
Mohd Zin had said the increase was minimal and hoped the public understood that the increase was stipulated in the concession agreements that the Government had signed.
Prime Minister Datuk Seri Abdullah Ahmad Badawi, however, urged for the decision to increase the toll rates to be reconsidered.
He said the matter will be discussed in the Cabinet meeting Friday, which will be chaired by Deputy Prime Minister Datuk Seri Najib Tun Razak.
“People are having difficulties. The situation is not right for a toll hike. I feel that this matter needs to be discussed again in the Cabinet.
”The decision may come in the form of measures that will included in the second stimulus package or through some other measures,” he had said in Pattaya, where he was attending the Asean Defence Minister’s Meeting.
Selangor yet to negotiate with federal govt on water
BERNAMA, February 26, 2009
SHAH ALAM: The water review panel, formed by the Selangor Government to review the restructuring of the water industry in the state, has yet to begin negotiations with the Federal Goverment for the acquisition of its water assets.
One of the panel members, Prof Dr Subramaniam Pillay, told a media briefing that the Federal Government had not met the panel to negotiate the take over of the state assets in the industry, that is, piping systems and 27 treatment plants worth about RM9 billion.
The water industry concessionaires in Selangor, namely Puncak Niaga (M) Sdn Bhd and Syarikat Pengeluaran Air Selangor Sdn Bhd (SPLASH), each own a water treatment plant in the state, said Pillay who is associate professor at the Nottingham University campus in Malaysia.
At the moment, Pengurusan Aset Air Bhd (PAAB) has moved in to negotiate directly with the four water concessionaires in the state, namely Puncak Niaga, SPLASH, Syarikat Bekalan Air Selangor Sdn Bhd (SYABAs) and Konsortium ABASS Sdn Bhd (Abass) in the restructuring of the water industry.
Under the initial restructuring plan, the Selangor Government via state controlled company, Kumpulan Darul Ehsan Bhd (KDEB), will take over the concessions and the assets to hand them over to PAAb, a wholly-owned company under the Ministry of Finance Inc.
The assets would then be leased back to KDEB as the sole licensed operator, as after the restructuring, there would be no more concessionaire, but a licence issued to the operator, subject to a review by the Federal Goverment within certain number of years, he said.
The existing four concessionaires had also rejected an offer by the state government to take over their assets and concessions for RM5.7 billion (RM1.1 billion for concessions and RM4.6 billion for assets) on Feb 20, this year, he said.
Among the reasons cited in a news report was that the offer was lower than their expectations.
However, another member panel, Tony Pua, said the state government believed that if it was given the licence to be the sole operator of the industry, it could provide cheaper water tariff to the public, due to the existing economies of scale in Selangor and maintain the free water policy for the first 20 cubic metre.
At present, the average price per cubic metre of water in Selangor for domestic use was 77sen, and this year, with the existing economies of scale in Selangor, the water tariff could be brought down by 10 percent to 69sen, and by 25 percent to 57sen in 2013, said Pua, who is also Petaling Jaya Utara assemblyman and a corporate lawyer.
He said this could be done through better management of the water industry, adding that Penang, which is smaller than Selangor, had proved it could supply water for domestic use at 37sen per cubic metre.
Should the state government fail to hand over its water assets to PAAB by March 31, this year, the water tariff could shoot up by 37percent.
There is also talk that SYABAS would likely get the licence if the Federal Government took over the state water assets, said Pua. - Bernama
SHAH ALAM: The water review panel, formed by the Selangor Government to review the restructuring of the water industry in the state, has yet to begin negotiations with the Federal Goverment for the acquisition of its water assets.
One of the panel members, Prof Dr Subramaniam Pillay, told a media briefing that the Federal Government had not met the panel to negotiate the take over of the state assets in the industry, that is, piping systems and 27 treatment plants worth about RM9 billion.
The water industry concessionaires in Selangor, namely Puncak Niaga (M) Sdn Bhd and Syarikat Pengeluaran Air Selangor Sdn Bhd (SPLASH), each own a water treatment plant in the state, said Pillay who is associate professor at the Nottingham University campus in Malaysia.
At the moment, Pengurusan Aset Air Bhd (PAAB) has moved in to negotiate directly with the four water concessionaires in the state, namely Puncak Niaga, SPLASH, Syarikat Bekalan Air Selangor Sdn Bhd (SYABAs) and Konsortium ABASS Sdn Bhd (Abass) in the restructuring of the water industry.
Under the initial restructuring plan, the Selangor Government via state controlled company, Kumpulan Darul Ehsan Bhd (KDEB), will take over the concessions and the assets to hand them over to PAAb, a wholly-owned company under the Ministry of Finance Inc.
The assets would then be leased back to KDEB as the sole licensed operator, as after the restructuring, there would be no more concessionaire, but a licence issued to the operator, subject to a review by the Federal Goverment within certain number of years, he said.
The existing four concessionaires had also rejected an offer by the state government to take over their assets and concessions for RM5.7 billion (RM1.1 billion for concessions and RM4.6 billion for assets) on Feb 20, this year, he said.
Among the reasons cited in a news report was that the offer was lower than their expectations.
However, another member panel, Tony Pua, said the state government believed that if it was given the licence to be the sole operator of the industry, it could provide cheaper water tariff to the public, due to the existing economies of scale in Selangor and maintain the free water policy for the first 20 cubic metre.
At present, the average price per cubic metre of water in Selangor for domestic use was 77sen, and this year, with the existing economies of scale in Selangor, the water tariff could be brought down by 10 percent to 69sen, and by 25 percent to 57sen in 2013, said Pua, who is also Petaling Jaya Utara assemblyman and a corporate lawyer.
He said this could be done through better management of the water industry, adding that Penang, which is smaller than Selangor, had proved it could supply water for domestic use at 37sen per cubic metre.
Should the state government fail to hand over its water assets to PAAB by March 31, this year, the water tariff could shoot up by 37percent.
There is also talk that SYABAS would likely get the licence if the Federal Government took over the state water assets, said Pua. - Bernama
MACC becomes official today
STAR
Tuesday February 24, 2009
By LOURDES CHARLES
PUTRAJAYA: The Malaysian Anti-Corruption Commission (MACC), which came into effect on Jan 1, will be officially unveiled by Datuk Seri Abdullah Ahmad Badawi today.
The event will be the culmination of the Prime Minister’s efforts to reform the Anti-Corruption Agency (ACA) and boost the fight against corruption.
The MACC, modelled after the much respected and feared Independent Commission Against Corruption of Hong Kong, has replaced the 41-year-old ACA.
In its bid to enhance effectiveness, the MACC has also set up the Anti-Corruption Advisory Board, the Special Committee on Corruption and the Complaints Committee. Today’s event will also see the naming of the members who will make up the three bodies.
The seven-member board are appointed by the Yang di-Pertuan Agong on the advice of the Prime Minister.
The members, who will serve a three-year term, are persons of integrity and who had rendered distinguished public services. They will not hold office for over two terms. The board will advise the commission on corruption in Malaysia including its eradication policies and strategies.
The Special Committee will advise the Prime Minister on corruption in the country and its seven members, also appointed by the King, will not be members of the administration but be drawn from the Senate and the House of Representatives.
Tuesday February 24, 2009
By LOURDES CHARLES
PUTRAJAYA: The Malaysian Anti-Corruption Commission (MACC), which came into effect on Jan 1, will be officially unveiled by Datuk Seri Abdullah Ahmad Badawi today.
The event will be the culmination of the Prime Minister’s efforts to reform the Anti-Corruption Agency (ACA) and boost the fight against corruption.
The MACC, modelled after the much respected and feared Independent Commission Against Corruption of Hong Kong, has replaced the 41-year-old ACA.
In its bid to enhance effectiveness, the MACC has also set up the Anti-Corruption Advisory Board, the Special Committee on Corruption and the Complaints Committee. Today’s event will also see the naming of the members who will make up the three bodies.
The seven-member board are appointed by the Yang di-Pertuan Agong on the advice of the Prime Minister.
The members, who will serve a three-year term, are persons of integrity and who had rendered distinguished public services. They will not hold office for over two terms. The board will advise the commission on corruption in Malaysia including its eradication policies and strategies.
The Special Committee will advise the Prime Minister on corruption in the country and its seven members, also appointed by the King, will not be members of the administration but be drawn from the Senate and the House of Representatives.
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