Water and electricity for all in 2 years: DPM

STAR, 23 December 2010

LIMBANG: The Federal Government has set itself a target of two years to resolve the electricity and water supply problems facing the people.

Deputy Chief Minister Tan Sri Muhyiddin Yassin said these two basic amenities must be supplied to all Malaysians regardless of where they were living.

“The extension of electricity and water supply has been included in the National Key Result Areas (NKRAs) and we have set a target of two years to provide the people with these amenities,” he said when addressing people from all races during a dinner here on Wednesday night.

Confident of achieving the target, he said the Government had already set things rolling.
“We are no longer talking about plans. We are not at the planning stage any more. We are already implementing programmes on the ground to get these accomplished.

“Provision of these basic amenities to all people, especially outside the cities and towns, is vital. It is as important as the construction of road-links for all rural regions, which is also under the NKRAs,’’ he added.
On Opposition propaganda, Muhyiddin urged the people not to believe their accusations that the Federal Government had given too much attention to only certain places, like Kuala Lumpur.

While he acknowledged that the Government had to spend huge sums to tackle public problems in huge cities like Kuala Lumpur, it had not neglected the rural people.

“In Kuala Lumpur, we have to spend billions to build facilities like the Mass Rapid Transit (MRT) just to resolve the massive traffic jams daily.

“However, we are also at the same time, focusing on overcoming the very basic problems like absence of electricity and water in rural settlements such as in Sarawak,’’ he added.

Muhyiddin said the Government’s plan to create a high-income society was aimed at the city and town people alone.

“We want to raise the per capita income to US$15,000 (RM46,700) by 2020, from the present US$8,000 (RM24,900). This target is achievable even for the rural people if the Government’s transformation programmes can succeed,’’ he said.

He said the Government had rolled out 131 big projects nationwide to transform the economic, industrial and services sectors and a big portion of these are for rural areas.

Syed Mokhtar gets Penang Port

By Jahabar Sadiq
Editor, Malaysian Insider

December 24, 2010

KUALA LUMPUR, Dec 24 — Tycoon Tan Sri Syed Mokhtar Al-Bukhary has won the race to take over the Ministry of Finance’s (MoF) Penang Port Sdn Bhd (PPSB), adding the northern port operator to his maritime logistics operations.

The Malaysian Insider understands that the Cabinet approved the sale at its meeting this week despite competitive bids from other top businessmen and also the Penang government, which owns the port land.
“The Cabinet has decided in favour of Syed Mokhtar,” a source told The Malaysian Insider, saying the tycoon’s company will buy into the port operator and the ferry service between Penang and Butterworth.
It is not known what price the government had agreed on but sources said it will be finalised soon.

Syed Mokhtar also owns PTP and Johor Port.

The influential businessman already owns Port of Tanjung Pelepas and Johor Port via MMC Corp Bhd, whose joint venture with Gamuda Bhd were also named Project Delivery Partner (PDP) for the RM36 billion Mass Rapid Transit (MRT) project in Kuala Lumpur.

Sources said Syed Mokhtar was the preferred contender as he already owned ports and airports although another Putrajaya-friendly tycoon Datuk Siew Ka Wei was keen to purchase PPSB through Ancom Logistics Bhd, whose chairman Datuk Abdul Latif Abdullah used to be PPSB chairman.

PPSB is a wholly-owned subsidiary of MoF Inc while the regulator, Penang Port Commission (PPC), also reports to Putrajaya through the Transport Ministry. Prime Minister Datuk Seri Najib Razak recently named MCA president Datuk Seri Dr Chua Soi Lek to head the PPC.

Penang Chief Minister Lim Guan Eng wrote to Najib in early December to put in a bid to run the port, which has declined since the MoF took over in 1994. The port lost its free port status in 1974.

It is learnt that cargo volumes have failed to match Port Klang and Tanjung Pelepas, growing only 5.8 per cent a year between 1995 and 2009, against Klang which grew 14.2 per cent annually.

Syed Mokhtar’s Tanjung Pelepas port began in 1999 but now handles more than six million TEUs (twenty-foot equivalent units) a year, six times more than the one million TEUs in Penang.

Penang has complained that federal ownership of the port operator has worsened its financial position, with net debt rising from RM148 million in 2004 to RM832 million in 2009 — a 462 per cent increase in five years.

Apart from the debt, any company taking over PPSB will also have to find nearly RM400 million to dredge the port channel and attract larger vessels there.

PPSB is already carrying out dredging in the North Channel to ensure it goes from 11.5m to between 13.5m and 14.5m in the coming year.

Lim’s administration had sought to take over PPSB.

PPSB has been planning to privatise and float its shares on Bursa Malaysia since 1996, but it was not able to do so because of the loss-making ferry service. A plan to hive off the ferry operation to Syarikat Prasarana Negara Bhd last year also fell through at the last minute. The ferry service has been a major hindrance to state-owned PPSB’s listing plans in the past due to the losses incurred, running into some RM13 million to RM15 million a year.

PPSB made RM77.74 million in after-tax profit in 2009, up from RM22.70 million the previous year despite revenues falling to RM268.54 million in 2009 against RM277.04 million in 2008.
State government sources said Lim could bring in enough businessmen and experts to run PPSB, which needed funds to deepen the port’s channel and also modernise its wharfs and berths.

“Lim has a few ideas to turn around the port and make it perform better,” a source said, pointing out that Penang owns the port’s land and waters and would have a say over who eventually owns PPSB.

Lim’s DAP colleagues had told Parliament on November 24 that Putrajaya should come clean on whether Syed Mokhtar had bought into the management of PPSB, which is led by Penang Umno leaders such as PPSB chairman Datuk Seri Dr Hilmi Yahya and its managing director, Datuk Ahmad Ibnuhajar.
A unit of Syed Mokhtar’s diverse infrastructure and logistics conglomerate was awarded a 4G network provider licence recently while another subsidiary is interested in acquiring the North-South Expressway (NSE).

Penang joins race for state port operator

Malaysian Insider, December 3, 2010

 

Lim Guan Eng

KUALA LUMPUR, Dec 3 — Penang is seeking to buy state port operator Penang Port Sdn Bhd (PPSB) from Putrajaya, which has received several offers for the profitable major port in northern Malaysia.

The Malaysian Insider understands that Chief Minister Lim Guan Eng sent the bid to PPSB’s owners, the Ministry of Finance. Others interested in the port include tycoons Tan Sri Syed Mokhtar Al-Bukhary and Datuk Siew Ka Wai, both of whom are said to be close to the Najib administration.

“Penang has already sent in a bid for PPSB. It believes it can do a better job than the current management,” a state government source told The Malaysian Insider.

PPSB made RM77.74 million in after-tax profit in 2009, up from RM22.70 million the previous year despite revenues falling to RM268.54 million in 20099 against RM277.04 million in 2008.

State government sources said Lim can bring in enough businessmen and experts to run PPSB, which apparently needs funds to deepen the port’s channel and also modernise its wharfs and berths.

“Lim has a few ideas to turn around the port and make it perform better,” a source said, pointing out that Penang owns the port’s land and waters and would have a say over who eventually owns PPSB.

Lim’s DAP colleagues had told Parliament on November 24 that Putrajaya should come clean whether Syed Mokhtar had bought into the management of PPSB, which is led by Penang Umno leaders such as PPSB chairman Datuk Seri Dr Hilmi Yahya and its managing director Datuk Ahmad Ibnuhajar.

A unit of Syed Mokhtar’s diverse infrastructure and logistics conglomerate was awarded a 4G network provider licence recently while another subsidiary is interested in acquiring the North-South Expressway (NSE).

But Syed Mokhtar is facing competition for the port operator from Siew, the pro-government industrialist who recently widened his Red Berry media company to include The Malay Mail tabloid, Bernama TV and business daily Malaysian Reserve.

Lim’s ruling Pakatan Rakyat (PR) state government is the political foe to the Barisan Nasional (BN) federal government, which recently appointed MCA president Datuk Seri Dr Chua Soi  Lek as regulator Penang Port Commission (PPC) chairman.

The PPC has licenced PPSB to run the port, which was privatised from January 1, 1994 when the island was ruled by BN. However, the shock results of Election 2008 has handed over the state to PR.

DAP lawmaker Tony Pua raised questions on November 23 over the widely-speculated takeover of the troubled Penang Port by Syed Mokhtar and demanded that the government disclose the full details of the privatisation process.

Petaling Jaya Utara MP Tony Pua pointed out to in Parliament that the port operations was already fraught with malpractice and irregularities, as underlined in the recent Auditor-General’s 2009 report, and was poised for a probe by the parliamentary Public Accounts Committee (PAC) in about two weeks’ time.

Pointing to a speculative report carried in Singapore’s Business Times last October, Pua noted that if the takeover did take place, it would be yet another direct affront to the government’s many promises of transparency and public accountability as underlined under Prime Minister Datuk Seri Najib Razak’s New Economic Model (NEM).

Pua described the move as another privatisation process “ala-Dr Mahathir” and questioned why the government had not conducted an open tender to allow the best bidder to develop the Penang Port.
Jelutong MP Jeff Ooi said that the Penang government felt “insulted and shortchanged” that the handover of Penang Port was not being done via open tender.

He also called for the suspension of PPSB chief executive Ahmad over reports of malpractices and irregularities in the port operations.

“The Penang government has suffered and contributed a lot through concessions given to the port authority, including the valuable prime land that has been alienated to them... notably, the one that is at the North Butterworth Container Terminal.

“According to the A-G’s report, there were a lot of malpractices here and the failure of the management has contributed to the sorry state of affairs.

“We want the CEO to be investigated by the CEO and the Malaysian Anti-Corruption Commission,” Ooi said.

Price hike for RON95, LPG and sugar

STAR, 3 December 2010

PUTRAJAYA: The prices for RON95 petrol and diesel will increase by 5sen per litre at midnight (12.01am Dec 4) while the prices of liquified petroleum gas (LPG) and sugar will be up by 5sen and 20sen per kg respectively.

RON95 would be raised to RM1.90 per litre from the current RM1.85 while price of diesel would be retailed at RM1.80 per litre. LPG and sugar will cost RM1.90 and RM2.10 per kg respectively.

Minister in the Prime Minister’s Department Datuk Seri Idris Jala Idris said the price hike was the second wave of the subsidy rationalisation programme.

Prices of RON95 and diesel went up by 5sen per litre while sugar and LPG were raised by 25sen and RM10 on July 16 for the first wave of the programme.

That resulted in total savings of RM779mil. This time around, Idris said the savings is expected to be RM1.18bil.

Idris said the savings would be channelled towards improving urban transportation network, rural basic infrastructure and roads, education and efforts to combat crime.

He added that the increase was very minimal and should not hurt the people.

“I think it is fair to the rakyat. I believe people will be able to accept it,” he told a media briefing on the second wave of subsidy rationalisation here Friday.

Idris said the Consumer Price Index could be contained in view of the low increase and declined to disclose the amount of subsidy the government would have to pay for the items.

PM launches second part of NEM

STAR, 3 December 2010

PUTRAJAYA: The final part of the New Economic Model was launched Friday as the government seeks to push the country forward through a comprehensive transformation plan.

The National Economic Advisory Council (NEAC), which prepared the NEM, emphasised that the document was a long-term plan comprising a combination of new and existing initiatives.

Performance Management and Delivery Unit (Pemandu), which NEAC chairman Tan Sri Amirsham Aziz described as having done a “fabulous job” over the past year, will continue to be the coordinating agency to oversee the implementation of the transformation programme.

In addition, the NEM also included a recommendation for an independent evaluation board to review the pace of policy implementation and to monitor if the objectives of the NEM was achieved.

On the affordability of implementing the NEM, Amirsham said it was “the cheapest and most cost-effective transformation programme.”

On affirmative policy, the NEAC pointed out that it had to be transparent, market friendly and merit-based.

One of the council’s recommendation is to have a set of criteria for which exemptions can be granted from the 30% bumiputra equity and employment requirement, and eliminate case-by-case exemptions.

“In the future, with or without a 30% or higher target of bumiputra ownership of share capital, an overwhelming proportion of bumiputra household income growth will come from wages and salaries.

“Thus, both bumiputra and other communities would be better off if Malaysia is unencumbered by the never ending debates over wealth distribution. After all, before wealth is to be distributed it must first be sustainably generated,” said the NEM.

Among other recommendations included:
* A central oversight authority to collect financial data on all GLCs, monitor their expenses and hold GLCs accountable for their mandates and budgetary expenses incurred
* Govt to divest non-strategic companies and channel proceeds from divestment into a sovereign wealth fund
* To have a set of criteria for which exemptions can be granted from the 30% bumiputra equity and employment requirement, and eliminate case-by-case exemptions
* Consolidate and merge national enterprises to create scale to compete in global market, as had been done in the financial sector
* Establish new specialised courts and tribunals e.g. to hear environmental, fiscal and maritime issues
* To revive the National Development Planning Committee as the premier body for policy development, coordination and consultation
* Implement the Goods and Services Tax (GST), roll back some corporate tax incentives for selected industries and lowering corporate and personal tax rates
* Establishing a National Wage Consultative Council, formalise a productivity-linked wage system, consider a minimum wage policy and introduce unemployment insurance
* Adopting a single comprehensive database for social assistance programmes

Amirsham said the transformation journey would be tough, but was encouraged the government had taken up some of the recommendations proposed under the first part of the NEM, which was launched on March 30 this year.

These included the introduction of health insurance scheme for foreign workers, the setting up of Talent Corporation and more focus on vocational training.

“Government finances was affected by unpaid hospital bills. The healthcare of foreign workers should be looked after, and the employers should bear the cost,” he said.

Road Transport Act amendments seek to resolve many transport issues

2 December 2010

KUALA LUMPUR: Amendments to the Road Transport Act (RTA) are most timely and will resolve many issues related to land transport infrastructure and road fatalities, say the Malaysia Institute of Transport (MITRANS) and the Association for the Improvement of Mass Transit (TRANSIT).

The two advocacy groups said the amendments to the RTA, which would be re-tabled in Parliament next week, would also see changes in the way Malaysians travel by road.

The amendments include those related to the registration of electric cars, the implementation of automated enforcement system to curb dangerous driving and the formation of the Land Transport Commission.

"It is definitely high time for the Road Transport Act to be amended to include the three important elements which will comprehensively address the road safety and public transportation problems Malaysians are tangled with today," said Associate Professor Sabariah Mohamad of Universiti Teknologi Mara and Director of MITRANS.

She said the amendments would objectively re-educate drivers who had been abusing the traffic laws.
Sabariah said the implementation of the Automated Enforcement System (AES) would help curb traffic offenders and lead to better driving practices among motorists.

Muhammad Zulkarnain Hamzah from TRANSIT said the association viewed the amendments to the RTA as necessary to fulfill the country's mobility needs in the future.

"We hope that the government will not just address the problem of road fatalities and congestion on the surface level, but focus on transforming our present mobility infrastructure and urban environment from being car-oriented to people-oriented.

"Kuala Lumpur and other high density cities in Malaysia must quickly implement traffic-restraint and transit-priority policies, and not depend entirely on rail-based mass transit for people to shift from cars to public transport."

Muhammad Zulkarnain said aggressive and risk-taking behaviour had become the norm among drivers in Malaysia as they become increasingly affected by congestion and travel delay and competed with each other to arrive at their destinations on time, while the road capacity had not increased at all.

Under amendments to the RTA, Malaysia will embark on the implementation of the AES, which uses hi-tech digital cameras to capture motorists violating traffic rules, including running red lights and speeding.
Malaysia has emerged as one of the countries with high road deaths per population, with 6,640 deaths from road accidents recorded in 2009.

Road accidents cost the economy some RM9bil last year, in terms of loss of lives and injury.
The Transport Ministry has targeted a long-term plan for "zero fatality vision" and studies by the ministry revealed that 60 to 70 percent of accidents were caused by speeding.

The ministry is also proposing amendments to the RTA to enable electric cars to be registered in Malaysia. Currently, electric vehicles cannot be registered as they do not have an engine and chassis number, which is a requirement when a vehicle is registered with the Road Transport Department.

The world's first mass-market electric cars will go on sale next month, and these cars are expected to hit Malaysian shores not too far down the road, especially with Proton planning to produce its own electric cars.
Meanwhile, the existence of the Land Transport Commission (LTC) to plan, regulate and enforce rules on land-based public and freight transport in Malaysia will also be dependent on the passing of the amended RTA.

Initially, LTC was to come into existence in September but the delay in RTA has resulted in the delay of its operations and its formulation of a public transport masterplan to ensure the holistic development of public transport in the country.

The commission had targeted 25 percent of the Klang Valley's population to use public transport by 2012.
The government's target under the 10th Malaysia Plan (2011-2015) is to improve the share of public transport from 12 percent in 2009 to 30 percent by 2015 in Greater Kuala Lumpur.

LTC's immediate target, as part of its masterplan, is to carry out five initiatives for the National Key Result Areas for urban public transport under the Government Transformation Programme.

They include improving bus journey times by having Bus Express Transit services, establishing dedicated bus right of way such as the Bus Rapid Transit system (bus lanes physically separated from other traffic), building and improving of over 1,000 bus stops in the Klang Valley, reorganising the bus network in the Klang Valley and having integrated smart ticketing. - Bernama

Govt open to foreign investors in local auto industry

Friday December 3, 2010

Star

KUALA LUMPUR: Strategies are being devised to open up the local automotive industry to foreign investments.
Transport Minister Datuk Seri Kong Cho Ha said this was in line with globalisation and liberalisation trends.
“The Government is devising appropriate strategies to open up the automotive industry while protecting local players and setting sustainable policies that allow fair competition among automakers,” he said in his keynote address at the 3rd Kuala Lumpur International Auto­motive Conference here yesterday.

Crowds looking at two Proton concept vehicles during a preview at the Kuala Lumpur International Motor Show 2010 at PWTC.

Kong said a liberalised industry and a level playing field would allow local and foreign players to map out future investment plans.

“Local players will be more competitive in line with the trend of market liberalisation and globalisation,” he added.

Kong said the Government was committed to tackling sensitive but economically vital issues, such as the potential gradual revision of fuel subsidies and inflationary control policies.

He urged the industry to expand through partnerships, mergers and acquisitions to become more competitive and achieve economies of scale and market dominance.

He said there was a shift in focus by major and established car makers, which were investing in emerging markets with large populations such as China, India and Indonesia, and striking up local alliances to expand their operations.

“This reflects a tremendous shift in their global market strategies which is in line with the growing economic and political power of the emerging market regions,” he said.

He said the Government hoped to create a conducive business environment that would enable auto industry players to flourish and find their share of the global market.

Kong said Malaysia could be considered a highly motorised country with 1.017 million new vehicles registered in 2009 alone.

The total number of registered vehicles on the road at the end of last year was 19.016 million and by the end of this year, it would be more than 20 million, he added.

On environmental sustainability, Kong said the Government was committed to promoting the manufacturing of fuel-efficient and alternative-energy vehicles to draw in more foreign investments.

Rais: Telco chiefs calmed by spectrum explanation

By Yow Hong Chieh

December 01, 2010

Malaysian Insider

Rais (right) blamed the media for the telco chiefs’ discontent over the alleged spectrum award. — file pic

 

KUALA LUMPUR, Dec 1 — Information, Communications and Culture Minister Datuk Seri Dr Rais Yatim today said telco players’ fears have been successfully allayed following their meeting with the prime minister over the YTL-700MHz issue.
“We gave an explanation and they (the telco chiefs) were satisfied because the 700MHz will always be there,” he told reporters here after unveiling his ministry’s new logo.

Rais admitted in Parliament yesterday that Datuk Seri Najib Razak met with industry players recently to discuss future plans for Malaysia’s communications sector.

However, The Straits Times reported that during the closed-door meeting, Najib had also told the Malaysian Communication and Multimedia Commission (MCMC) to consult “the private sector before awarding the rights of the 700MHz spectrum”, which is seen as a key component of 4G high-speed wireless broadband.

The Malaysian Insider also understands that Najib has directed regulators to review the 700MHz apparatus assignment rights allegedly granted to YTL Communications Sdn Bhd (YTL Comms), following the MCMC’s denial on the matter on Sunday.

The country’s telcos have been up in arms ever since MCMC’s chief planning and development officer Toh Swee Hoe told The Edge weekly that YTL Comms will get an apparatus assignment (AA) in the 700MHz for its hybrid television service.

Broadband spectra are now highly coveted by telecommunications and multimedia companies, and the alleged award of the AA in the prized spectrum to YTL Comms has riled the country’s telcos, who say it can be used to offer their services in rural areas.

They fear it would allow a new provider like YTL “a stranglehold over the next wave of new technologies, called Long Term Evolution (LTE) which will power the 4G market”.

YTL Comms has denied that it will repurpose the spectrum for its broadband service, pointing out that it already has the 2.3GHz spectrum and a 20MHz block within the 2.5/2.6GHz spectrum which MCMC recently allocated.

Rais also reiterated that the 700MHz spectrum has never been awarded to any party as MCMC was keeping it for digital broadcasting purposes.

“Because the media do not understand, they have published preliminary news which caused some telco chiefs... to feel that this jeopardises their business,” he said.

He gave assurances that the 700MHz spectrum will be expanded and allocated accordingly to other industry players “based on need”.

On Sunday, MCMC denied that YTL Comms can operate its television service on the 700MHz band, saying “MCMC would like to reiterate that no spectrum assignment has been issued to YTL of the 700MHz spectrum band for pay-TV broadcasting, hence the reports and commentaries on a spectrum issuance are inaccurate.”

However, in the same statement, MCMC said it was examining a YTL business plan for digital TV, which will operate within the 700MHz spectrum under the National Spectrum Plan

Rais grilled in Parliament over YTL-700MHz saga

UPDATED @ 09:27:25 PM 30-11-2010

By Clara Chooi

November 30, 2010

Malaysian Insider

KUALA LUMPUR, Nov 30 – The Najib Administration was forced to stave off continuous accusations of cronyism in Parliament today for its alleged award of the prized 700MHz spectrum to YTL Communications Sdn Bhd (YTL Comms).

Information, Communications and Technology Minister Datuk Seri Dr Rais Yatim manned the fort for a good hour when speaking on the issue and continued to deny that government regulator Malaysian Communication and Multimedia Commission (MCMC) had ever given approval to anyone to operate in the 700MHz band, which can be used for broadcasting or broadband services.

The issue was raised by Jeff Ooi (DAP-Jelutong) in the House when debating a RM10 pay cut motion for Rais, who accused the government of “quietly” awarding the spectrum to YTL Comms, a unit of tycoon Tan Sri Francis Yeoh’s YTL property-to-power group.

In his debate speech, Ooi said the alleged award had been shrouded in mystery and reeked of cronyism and lacked transparency.

“It also means that if YTL is awarded the spectrum without fair consideration given to other MCMC licensees in the industry, including Telekom Malaysia, Axiata, Maxis, Digi, Packet One and others. This has become a monopoly and is similar to a 100m race where YTL is give a 50m head-start privilege while the others are left behind.

“Why was YTL given this privilege?” he asked.

He added that without the apparatus assignment (AA) rights, other industry players like Axiata, Maxis and Digi would not be on a level playing field and would likely face a shutdown or be forced to buy bandwidth from YTL.

Ooi dared the ministry to come clean on the issue and questioned if the saga was a mere repeat of the sports betting episode earlier this year when the government flip-flopped on its decision to award a license to tycoon Tan Sri Vincent Tan’s Ascot Sports Sdn Bhd.

“I put it to you, Mr Minister, that you as the minister is fully aware that YTL was given the 700MHz spectrum in writing but the Prime Minister was forced to be dragged into this, and forced to do another flip-flop because of objections from Axiata and others?” he charged.

Last May, Tan had told Bursa Malaysia that his Ascots Sports Sdn Bhd had received a letter from the government dated January 13, 2010 that his sports betting licence had been re-issued.

But following the uproar that his announcement had caused and the silence from the government that followed, the licence was eventually rescinded.

In his response today, Rais stressed that the prized spectrum had never been awarded to anyone and claimed that Ooi’s debate was void of facts.

“The 700MHz spectrum was never awarded to anyone. So YB, you should first know the facts before you make such unfounded statements.

“The two spectrum commodities – the 700MHz and 2.6GHz spectrums – are important to help us in the future to compete in the communications sector.

“We have to be aware that the 700MHz spectrum is held by MCMC and is important for our future programmes in the country,” he said.

He added that despite what was reported in Singapore and local media, all allegations were merely “hearsay”.
“So I invite MP Jelutong to attend a briefing with the MCMC. Come and see for yourself where your debate stands.

“It is easy to use such eloquence to accuse MCMC but this should not be done. This is akin to punishing a person before asking the question, instead of asking the question first, and then meting out a punishment.
“I would like to state here that little knowledge is dangerous,” he said.

Ooi interjected at this juncture, pointing out that news of the contentious award of a 80MHz block in the 700MHz spectrum had hit the headlines on November 26.

“But it took MCMC 48 hours to deny it. And why was there a special meeting held between the chiefs of Axiata with the Prime Minister? If there is no wind, the leaves on the tree will not sway,” he said.
Rais continued to deny the rumours, however, and reasoned that the Prime Minister had every right to meet with the telco chiefs.

“I invite you again to check your facts. The 48-hour issue is not the problem. The problem is whether what you say is based on facts or not. So let me repeat the facts – the 700MHz spectrum was not given to anyone,” he said.

Rais admitted to a meeting with the Prime Minister and industry players recently and revealed that it was also attended by the country’s economic adviser.

“But discussions centered on the country’s plans for the future in the communications sector. So in the future, whether or not we choose an auction or to create new rules, what is more important is that we do not lose our source of revenue,” he said.

Rais pledged the government’s intention to incorporate the services of the new players in the telco industry, insisting that none would be left behind.

The Malaysian Insider reported today that Prime Minister Datuk Seri Najib Razak had directed regulators to review the 700MHz apparatus assignment rights allegedly granted to YTL Comms, following the MCMC’s denial on the matter on Sunday.

In its denial, the regulator had however conceded that it was presently “assessing a detailed business plan by YTL for the roll out of digital pay-TV and not 4G mobile services as reported.

“MCMC would like to reiterate that no spectrum assignment has been issued to YTL of the 700MHz spectrum band for pay-TV broadcasting, hence the reports and commentaries on a spectrum issuance are inaccurate.

“The operating licence issued to them on August 30 is for a content applications service provider individual licence, to provide subscription-based Internet protocol television services using their 2.3GHz WiMAX network,” it said in its statement on Sunday.

Industry sources were tight-lipped over a closed-door meeting between the prime minister and telco executives but The Straits Times reported that Najib had told the MCMC to consult “the private sector before awarding the rights of the 700MHz spectrum”, which is seen as a key component of the 4G high-speed wireless broadband.

He also directed the ministry to complete its review before the end of January, and to submit recommendations on how the government should proceed with the award, executives familiar with the meeting told The Straits Times.

YTL Comms executive director Datuk Yeoh Seok Hong had told The Malaysian Insider last week that the company had a five-year concession to operate in the 700MHz band for a pay-television operation competing with the dominant Astro network.

MCMC has regulations on award of spectrum but executives familiar with the process told The Malaysian Insider that the regulator had ignored the rules in the recent apparatus assignment exercise for the 700MHz and the 2.5/2.6GHz spectrum recently.

Broadband spectrums are now highly coveted by telecommunications and multimedia companies, and the alleged award of apparatus assignment in the prized spectrum to YTL Communications had seriously upset the country’s telcos who can use it to offer their services in rural areas.

They had feared that it would allow a new provider like “YTL a stranglehold over the next wave of new technologies, called Long Term Evolution (LTE) which will power the 4G market”.

But in its release, the MCMC said: “Under Malaysia’s National Spectrum Plan, the 700MHz spectrum band is allocated for broadcasting service, and not for LTE or 4G mobile services as speculated.”

PM to calm telcos upset with YTL’s new TV spectrum

November 26, 2010

Najib will need to reassure telecommunications players riled by the unilateral award. — file pic

 

KUALA LUMPUR, Nov 26 — New network provider YTL Communication’s sole rights to a portion of digital television broadband spectrum has upset competitors who now want Datuk Seri Najib Razak to settle the issue in the fast-growing and lucrative industry.
Singapore’s The Straits Times said the prime minister will meet senior telco officials next Monday to defuse the widening controversy over the 700Mhz spectrum said to be given to tycoon Tan Sri Francis Yeoh’s YTL to operate its hybrid television service slated for end 2011. It can also be used to widen its broadband service.

“I guess the fear is YTL gets the spectrum for ‘broadcast’ purposes and ‘later’ comes back to amend the use of it to broadband on the pretext that convergence of technologies is already happening. Hence their big mantra about quadruple play,” a government source told The Malaysian Insider when asked to comment on The Straits Times’ report.

The Straits Times report quoted the chief executive officer of a large financial institution which has made huge loans to the country’s mobile operators, describing the award of the licence to YTL “scandalous.”
“Without access to the (700MHz) spectrum, the big three won’t be able to expand.” With this stranglehold, YTL “can either shut out other telcos, or resell bandwidth to them.”

The industry fears YTL will repurpose its spectrum allocation by claiming convergence.

While details of the licence are not yet public knowledge, it is believed the award was made without consultation with the three main mobile telcos, including Celcom Axiata which is government-controlled.
Media reports over the past month said that the Malaysian Communications and Multimedia Commission (MCMC) had issued 80Mhz of the 700Mhz spectrum to YTL, which had a disastrous launch of its long-delayed YES 4G WIMAX service.
The other WIMAX provider is P1 but the new spectrum could give YTL total control over the next wave of new technologies in the telco sector. Called Long Term Evolution (LTE), it powers the 4G market which both YTL and P1 claim to provide now. However, their current services do not meet the International Telecommunication Union’s (ITU) criteria for 4G.
The other two big players are Maxis Broadband and Digi Telecommunications. There were previously nine telcos in Malaysia but the regional financial crisis in 1997 forced a consolidation in the sector.

The prime minister now has to step carefully as he works towards defusing the situation. A senior government official said in The Straits Times report, “The industry wants him to review the licence. But to backtrack could also put him in a bad light.”
Senior executives of Celcom Axiata initiated this meeting with the prime minister. Their argument is that they, “together with the other two main players in the mobile business, have invested billions of ringgit in infrastructure over the past decade to service its 26 million or so subscribers.”
They contend the “government can’t just give a relatively new player such a licence and turn its back on the established operators.”

Broadband spectrums are highly coveted in the industry, and in Europe, these are auctioned, a move which raises huge amounts of capital for the countries.

YTL signed an agreement with the US-based Sezmi last month to offer hybrid TV services in Malaysia at the end of 2011. However, YTL would require new spectrum/frequency to offer such services.
Sources said YTL will deploy the Sezmi service using DVB-T2 (Digital Video Broadcasting – Second Generation Terrestrial) technology, which is now used in the United Kingdom and Italy, and being trialled in Spain and Germany.

The 700Mhz band is now being used for terrestrial television (TV) broadcast in Malaysia until sometime around 2015, but there are some unused spectrum in 700Mhz range which YTL could use to offer basic hybrid TV services end next year, said industry website malaysianwireless.com.
The 700Mhz spectrum has been prized all over the world including the United States where Yahoo, eBay and Google banded together in March 2007 to force the hand of the US Federal Communications Commission (FCC) to enable the parties to have a say in what is to be done with the spectrum.
The FCC has dubbed  the 700Mhz to a “beach front” property and YTL’s reported rights to it is seen as disadvantageous to its rivals.

“The thing that caused the irk in most is, it seems, they were the only ones who even got a conditional offer,” the government source added.

Penang insists water rates still ‘lowest’ in country

By Shazwan Mustafa Kamal

Malaysian Insider
November 03, 2010

Lim explained that the water surcharge was designed to encourage water conservation. — file pic

KUALA LUMPUR, Nov 3 — Penang Chief Minister Lim Guan Eng today defended the state’s increase in water charges, saying tariffs there remained the “lowest” in the country despite the hike.

Lim also dismissed state opposition party Gerakan’s allegations that the administration’s decision to raise water tariffs by 27 per cent would burden households with more than five family members.

“After the water increase, the water domestic rate in Penang is still the lowest. For domestic rates you only have to pay [more] if you use above a certain limit. If you use up to 35 cubic metres, it is still the same, it’s just that [for] anything above that there is a surcharge,” Lim told The Malaysian Insider today.

The chief minister took great pains to explain that the rationale for the surcharge was to prevent water wastage, claiming there would be no motivation to conserve water if prices were maintained below production costs.

“Even in the case of water for businesses, we are still the second-lowest in the country, after Terengganu. If water is too cheap, people will tend to waste. What we want to do is to put it slightly above production costs, as it is now below production costs,” said Lim.

The Penang Pakatan Rakyat (PR) administration has come under fire from Barisan Nasional (BN) state opposition parties, who have embarked on a campaign to discredit the state government over the move.

Penang Gerakan vice-chairman, Wong Mun Hoe, claimed on Monday that the hike in state water prices would burden Penang folk and have long-term implications to households with more than five family members.

“According to our research, a family with more than five members will incur an average increase ranging from RM8 per month to about RM100 a year,” he said, adding that the rise would also affect small businesses, traders and even investors who required water in their business activities.

Wong further claimed the profits of Perbadanan Bekalan Air Pulau Pinang (PBAPP) had dropped to RM31.2 million in 2008 and RM14.8 million in 2009, while under the PR state administration.

PBAPP’s profits had been RM43.1 million in 2007, when the state was still under BN, according to Wong.

Yesterday, a group of 100 people representing Balik Pulau residents, Komtar traders and Parti Cinta Malaysia members held a demonstration in front of the Penang state assembly to protest against several issues, including the water tariff hike.

There, they had demanded a meeting with Lim but were denied entry into the state assembly.

“I don’t mind discussing matters with the protestors. But these protestors are Umno people, trying to create havoc and chaos,” the chief minister said today.

Putrajaya may bail out water bondholders

Putrajaya may bail out water bondholders, says minister

By Yow Hong Chieh
Malaysian Insider

November 04, 2010

Chin believed the huge difference in valuations made it unlikely that the impasse would resolve itself. — file pic

KUALA LUMPUR, Nov 4 — The federal government may come to the rescue of Selangor water bondholders by undertaking a bond swap if no headway is made soon in stalled water consolidation talks, Datuk Seri Peter Chin has said.

The minister for energy, green technology and water revealed that swapping existing bonds with triple-A government-backed ones was one option on the table to buy stakeholders more time as state and federal governments try to break the current impasse.

“These are all permutations that can be looked at if all else fails,” Chin told The Malaysian Insider earlier this week, when asked if the Water Asset Management Company (PAAB) will issue new bonds to replace maturing ones.

Major bondholders include CIMB, Hong Leong Bank, Great Eastern Life and the Employees Provident Fund (EPF).

Selangor’s water players — Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), Puncak Niaga Sdn Bhd (PNSB), Syarikat Pengeluaran Air Sungai Selangor Sdn Bhd (Splash) and Konsortium ABASS — are at risk of debt payment default as water bonds approach their December 31 maturity date.

The debt service problem started when Syabas was barred from implementing a 37 per cent tariff hike agreed upon in January 2009, after the Selangor government claimed the sole water distributor had not done enough to reduce leakages which cost the state millions.

This in turn led to payment problems between Syabas and water treatment concessionaires PNSB, Splash and Konsortium ABASS, who supply it with treated water.

All four term loan borrowers are already in technical default following their inability to maintain six months’ worth of reserves in a special account used to pay bondholders. The shortfall is understood to be some RM50 million, although this deficit could double in six months.

The technical default triggered a downgrade of the debt issuances by Malaysian Rating Corp Bhd (MARC) and RAM Ratings Services Bhd on September 8, who warned of further multiple-notch downgrades in this quarter. An industry source told The Malaysian Insider that bondholders suffered RM457 million in mark-to-market losses following the downgrade.

Syabas, Puncak Niaga (M) Sdn Bhd (PNSB), PNHB, RUN Holding SPV Bhd (RUNH), Splash, Viable Chip (M) Sdn Bhd (VCSB) and Titisan Modal (M) Sdn Bhd (TMSB) were downgraded by MARC while RAM cut ratings for Splash and Taliworks Corp Bhd subsidiaries, Destinasi Teguh Sdn Bhd and Sungai Harmoni Sdn Bhd.

Khalid’s administration has valued Selangor’s water assets at nearly RM11 billion.

A statement by MARC at the time urged federal and state governments to urgently intervene in the water industry’s restructuring negotiations to prevent a free fall of ratings in following months.

In an interview with The Malaysian Insider, Chin, however, said PAAB will not be able to raise funds for the bond swap if Selangor Mentri Besar Tan Sri Khalid Ibrahim stands by his recent statement that state water assets were worth RM10.98 billion and not RM1 billion, as previously assessed.

“PAAB will never be able to afford that money because that money has to be raised from the bonds. And, if PAAB raised that bond, your tariffs in Selangor will rocket sky-high,” he said.

“There is no way, when you have to ask the bond market to raise money, to pay for this sort of huge sum of money unless Selangor government say [it] will bear the interest. Are they going to do it? You’ve got to think of all this. It’s not just a matter of, ‘I want this figure, full-stop’.”

The six-term Miri MP said PAAB was only willing to offer RM1.1 billion for the water assets, in line with a valuation done by the previous state government, and not RM10.98 billion derived through “so-called replacement principle of evaluation”.

“How can there be such a big difference? And our figure is not just plucked from the air. It’s from consultants. So how can be such a big difference?” he asked. “You’ve got to give a figure that’s a fair valuation of what Syabas equities [are worth] because... they have to take over Syabas equity. And so also the others.”

Chin said Khalid’s statement appeared to be an attempt to sabotage ongoing water consolidation talks between state and federal governments, and was pessimistic that a resolution could be achieved by end of next month.

“Now, of course, Selangor, to me, they have been very unreasonable to put down a figure of RM10.98 (billion) in terms of their assets value. That itself is already throwing a big spanner into the works. Who can afford that sort of money?” he asked.

“At the moment, it looks like the parties are very adamant to get what they want and each one is talking on figures that are just too high. There is no way.”

However, Chin denied he will use powers granted to him by the Water Services Industry Act (WSIA) 2006 to force water consolidation under terms favourable to the federal government, as some Selangor government officials have suggested.

Section 114(1) of the WSIA allows the minister to assume complete or partial control of concessionaires in the interest of the nation, and “shall not be challenged, appealed against, reviewed, quashed or questioned in any court”.

“How can you force? How can you nationalise companies? I mean, this sort of thing, we cannot do that. There is an agreement signed, and federal government is one of the signatories, so also Selangor government,” Chin said.

“That (section) is only when there are extreme situations. For example, [when] there is no water.”

He nonetheless urged Khalid to redouble his efforts to solve the water crisis, given the rapidly approaching deadline.

“I hope he will use his special effort, he will be able to use his persuasion or whatever to get the companies to see his line of approach. If he can persuade these companies to sell their lock, stock and barrel to him, that will be the best solution according to him. So, if that is the case, be my guest. He is welcome to do it. But do it at a fast pace, don’t just simply talk about it,” he said.

“If he has some concrete plans, I have not seen it yet,” he added.

Miros Director-General Among Seven Appointed In Spad

July 23, 2010

KUALA LUMPUR, July 23 (Bernama) -- Malaysian Institute of Road Safety Research (Miros) director-general Prof Dr Ahmad Farhan Sadullah has been appointed as one of seven members of the Land Public Transport Commission (Spad), effective Friday.

Prime Minister Datuk Seri Najib Tun Razak on Friday announced the names of commission members who will be serving for a three-year period.

According to a statement issued by the Prime Minister's Office, also appointed were Institute of Strategic and International Studies (ISIS) chief executive Datuk Dr Mahani Zainal Abidin and Malaysian Institute of Accountants (MIA) council member Datuk Khalid Ahmad.

Also included were WZ Steel Berhad (formerly known Weng Zheng Resources Berhad) director Datuk Siow Kim Lun, the Finance Ministry's Economic Analysis and International Division secretary Datuk Dr Irwan Siregar Abdullah, Economic Planning Unit deputy director-general II Himmat Singh Ralla Singh and Special Officer to the Prime Minister, Wan Ahmad Shihab Ismail.

"All of those appointed represent the public and private sectors. They were chosen based on their knowledge and experience in various fields, as well as their ability to play an effective role in carrying out functions under Spad to realise the objective of its establishment," it added.

This follows the announcement on Tan Sri Syed Hamid Albar's appointment as chairman and Mohd Nur Ismal Mohamed Kamal as the commission's chief executive officer, effective since June 3, the statement said.

The commission, under the supervision of the Prime Minister, will be responsible for almost all aspects of land transport in Malaysia under the management of one main body.

The statement said that with the appointment, it believed that Spad will be able to improve the quality of public transport, which is one of the focus under the National Key Result Areas (NKRA) as announced by the Prime Minister last year.

Dr Ahmad Farhan was Dean of University Sains Malaysia's (USM) School of Civil Engineering prior to his appointment in Miros.

The PhD holder in Transport Studies from University of London, also acted as the Programme Chairman of Geotechnical, Highway and Transportation Engineering at Universiti Sains Malaysia and Coordinator of Engineering Innovation and Technology Development Unit (EITD) during his tenure as an Associate Professor at USM.

He has conducted numerous research specialising in transport such as Intelligent Transport Systems, travel behavior and traffic engineering, in addition to publishing numerous books and journals relating to transport in Malaysia.

Dr Mahani was the Director-General of ISIS from 2007 and 2009, after she left her position as the Deputy Director of the Department of Higher Education in the Ministry of Higher Education.

In terms of academic qualification, Dr Mahani holds a PhD in Development Economics from the University of London and her research interests are industrialism and economic transformation, international trade and regional integration.

Former Association of Chartered Certified Accountants (ACCA) Malaysia Advisory Committee president, Khalid was previously Executive Chairman of the Malaysian Resources Corporation Berhad (MRCB) and has also served as Managing Director of Syarikat Televisyen Malaysia Berhad (TV3).

A lawyer by training, Wan Ahmad's responsibilities include research and monitoring of transport policy and issues relating to public transport. He is also a Director of the Multimedia Development Corporation Sdn Bhd (MDec).

Backed by vast experience in economics and finance, Siow is also Director of XingQuan International Sports Holdings Limited and Citibank Berhad, as well as an Independent Non-Executive Director of UMW Holdings Berhad, while Dr Mohd Irwan Serigar has experience in the Ministry of Finance and the Economic Planning Unit of the Prime Minister's Department.

-- BERNAMA

New fuel, sugar prices

Motorists flocking to a petrol station to fill their tanks hours before the new prices for RON 95 and diesel are to be implemented. — NST picture by Aizuddin Saad

NST, 16 July 2010

KUALA LUMPUR: As the first step towards gradual subsidy rationalisation, the government announced yesterday a reduction in the subsidies for fuel, specifically petrol, diesel and liquefied petroleum gas (LPG), as well as sugar.

Subsidies for RON 95 and diesel will be reduced by five sen per litre and LPG by
10 sen per kg. RON 97 petrol will no longer be subsidised but will be subject to a managed float, with the price determined by an automatic pricing mechanism.
The new price for RON 95 is RM1.85 per litre compared with RM1.80 per litre

previously. For RON 97, which accounts for 13 per cent of sales of petrol and diesel, the new price starts at RM2.10 per litre and will be reviewed monthly.

Diesel is now priced at RM1.75 per litre against RM1.70 per litre previously.

For LPG (cooking gas), the new prices are RM18.50 for 10kg (RM17.50 previously),
RM22.20 for 12kg (RM21 previously) and RM25.90 for 14kg (RM24.50 previously).

For sugar, the price has been adjusted upward by 25 sen per kg to RM1.90 per
kg (previously RM1.65 per kg). These new prices took effect at midnight.

“The government has made a difficult but bold decision,” a statement from the Prime Minister’s Office said yesterday.

“By choosing to implement these modest subsidy reforms, we have taken a

crucial step in the right direction towards meeting our commitment to reduce the
fiscal deficit, without overburdening the Malaysian people.

“These measures are a demonstration of our fiscal responsibility. They will
enhance Malaysia’s financial stability, while also protecting the rakyat.”
In Alor Star, Prime Minister Datuk Seri Najib Razak said the subsidy cuts would help the government reduce the fiscal deficit while the reduced subsidies
meant that more funds could be channelled towards national development for the people.

“We have many programmes under the National Key Result Areas and the National Key Economic Areas, which will be announced soon.

“I assure you the subsidy cuts are minimal and will not be a burden to the people. We will use the savings derived from the subsidy cuts to meet the needs of the people, especially in the rural areas,” he said after opening the Kuala Kedah Umno division delegates’ conference.

Even with these subsidy cuts, the government will still spend an estimated RM7.82 billion on fuel and sugar subsidies this year. The prices of fuel and sugar will continue to be among the lowest in the region.

By way of a comparison, RON 95 petrol is priced at the equivalent of RM4.12 a litre in Thailand and RM2.48 a litre in Indonesia. This subsidy rationalisation will, according to estimates, allow Malaysia to reduce government expenditure
by more than RM750 million this year.

Economists contacted by Reuters news agency generally agreed with the government’s move to cut subsidies. Enrico Tanuwidjaja of OSK-DMG in Singapore said the subsidy cuts suggested that the government was quite positive about the growth outlook.

“I think the amount itself is relatively small in the sense that people’s purchasing power may not be that eroded and may not be that inflationary.

“This is a good way to consolidate the huge negative in the fiscal position.
“Let’s see how consistent they are moving forward — that is the important part. They can afford to do so if looking at the oil prices now.

“Definitely, this is a point moving forward that they are going to embark on a more prudent fiscal approach.”

Irvin Seah of DBS Bank said the move signalled the government’s readiness to really go ahead with its rationalisation plan, especially with fuel subsidies.

“There will be some mild impact to headline inflation and we can expect to see, overall, Malaysian prices going up. The petrol price hike is an added bonus to lowering the fiscal deficit.

“We have, anyway, expected the fiscal deficit to fall this year on strong gross domestic product growth.” Federation of Malaysian Consumers Associations president Datuk Marimuthu Nadason urged consumers to accept the small price increases, saying they would not have a huge impact.

He urged traders not to take advantage of the new sugar price to charge consumers more for their food products. Marimuthu said the reduction in subsidies would help to reduce the government’s spending and channel its resources to other areas to uplift society.

“The government will now be able to provide improved education and health services and facilities to the public.”

Selangor tables freedom of information Bill

Thursday July 15, 2010

By EDWARD R. HENRY, The STAR

SHAH ALAM: The Pakatan Rakyat Government in Selangor created history yesterday by tabling its Freedom of Information Bill 2010 at the State Legislature to strengthen the people’s right to access to information.

As expected, the Pakatan assemblymen supported the Bill while Barisan Nasional assemblymen opposed it during the debate after the Second Reading of the Bill.

Earlier, State Executive Councillor for Tourism, Consumerism and the Environment Elizabeth Wong, who had tabled the FOI Bill for the First and Second Readings, said the new law when implemented would promote transparency and accountability in the state government.

“We encourage all Selangorians to take full advantage of their right to access information and to make government open and accountable. It is only through open government as well as a well-informed and empowered citizenry that democracy can be broadened and deepened in Selangor.”

She said the state government was tabling the Bill to “enhance disclosure of information in the public interest, to provide every individual with a window to access information made at local councils and departments at the state level”.

The Bill provides for one information officer for each state government department to guide the public in accessing the requested documents. The officer has to respond within 30 days, or seven days in the case of life-threatening situations.

Ismail Sani (BN-Dusun Tua) objected to the Bill, claiming it was not relevant and infringed on the Official Secrets Act (OSA) 1972 passed by Parliament.

“Selangor cannot table such a Bill, as certain information involves departments under the state that needs to obtain clearance from Parliament before it is declassified,” he said.

Sulaiman Abdul Razak (BN-Permatang) echoed the same sentiments, and warned that it could bring disaster to the state as political parties could use it for malicious reasons.

“All matters must be weighed carefully. We should not just come up with an enactment to project a transparent and accountable government, but which in reality would bring trouble,” he said.

The debate on the Bill continues today.

Promoting Competition

STAR, 12 June 2010

THE Competition Bill 2010, which was passed last month and expected to be implemented by mid- or end of 2011, is aimed at creating a better business environment and to check against anti-competitive practices.

The bill, once gazetted, will be known as the Competition Act 2010.

The bill describes the “process of competition” as encouraging efficiency, innovation and entrepreneurship, which promotes competitive prices, improvement in the quality of products and services and wider choices for consumers.

“In order to achieve these benefits, it is the purpose of this legislation to prohibit anti-competitive conduct,” it says in the bill.

In a newspaper report last month, Faizah Jamaludin, a partner at the law firm Skrine & Co, wrote: “The implementation of the Competition Act 2010 will bring Malaysia in line with over 100 jurisdictions worldwide, including its Asean neighbours Indonesia, Singapore, Thailand and Vietnam.

“The Competition Act seeks to promote and protect the process of competition by changing the behaviour of businesses. It will regulate not just monopolies and cartels, but all types of businesses from multinationals to the small and medium enterprises and “mom and pop” shops.

“Hypermarkets, airlines, newspapers, banks, insurance companies, private hospitals, accounting, engineering and legal firms, to name a few, will all be governed by the Act. Government-linked companies (GLCs) are not exempted and are similarly subject to the provisions of the Act,” she wrote.

The bill seeks to introduce prohibitions on anti-competitive conduct and practices.

“The object of the Act is to promote economic development by protecting the process of competition, and thereby protecting the interest of consumers,” the bill states.

The Act makes provision for the introduction of competition law by introducing two main prohibitions. The first is in respect of agreements or concerted practices between enterprises or association of enterprises, which have the effect of significantly preventing, restricting or distorting competition in Malaysia.

The second is the prohibition of the abuse by an enterprise or enterprises of a dominant position in Malaysia.

It defines the term “dominant position” as a situation where “one or more enterprises possess such significant power in a market to adjust prices or outputs or trading terms, without effective constraint from competitors or potential competitors.”

Here, the Act considers a parent company and its subsidiaries as a single enterprise where, despite their legal separation, they form a single economic unit within which subsidiaries do not enjoy real autonomy in determining their actions in the market.

The act will apply to any commercial activity, both within and outside Malaysia. In relation to the application of the act outside Malaysia, it applies to any commercial activity transacted outside the country which has an effect on competition in any market in the country.

The Act will be enforced in Malaysia by the Malaysian Competition Commission (MCC), which has been given considerable powers of investigation and enforcement, such as entering and searching premises and require the production of all documents and information including computerised data.

Interference with the MCC’s powers and investigations is an offence which carries a fine of up to RM5mil for the first offence and RM10mil for the second and subsequent offences.

Faizah also wrote that directors, CEOs, COOs and managers would be personally liable for their company’s offences unless they proved that the offence was committed without their knowledge, consent or connivance, and that they had taken all reasonable precautions and exercised due diligence to prevent the commission of such offences.

“They will also be liable for the offences of their employees, agents and agent’s employees committed in the course of employment,” she was quoted in the news report.

Competition Commission Bill

The Competition Commission Bill has also been passed to provide for the creation of a commission to control monopoly activities and will be the authority to take action against the companies involved in the activities.

According to reports, the Competition Commission Bill 2010 seeks to provide for the establishment of the Competition Commission and to provide for its functions and powers.

Once approved, it will impose a duty on the commission to furnish certain returns, reports, accounts and information to the minister or any public authority.

The commission will consist of a chairman, four members representing the government, and between three and five other members with experience related to business, industry, commerce, law, economics, public administration and consumer protection.

Its functions include advising the minister or any public or regulatory body on matters concerning competition.

In a news report in April, Domestic Trade, Co-operatives and Consumerism Minister Datuk Ismail Sabri Yaakob said both the Competition Bill 2010 and Competition Commission Bill 2010 was passed to show that the Government was serious in creating a healthy business environment.

“Before, there was no control over monopolies and cartels, but now there are laws for such things,’’ he was quoted as saying.

Consumer Protection (Amendment) Bill

According to the parliament website, the Consumer Protection (Amendment) Bill 2010 is scheduled to be tabled for its second and third reading.

This bill has several changes and seeks to amend its predecessor, the Consumer Protection Act 1999.

SPAD Expected to Be Implemented in September

KUALA LUMPUR, June 21 (Bernama)

The Land Public Transport Authority (SPAD) is expected to be implemented in September, once the Land Public Transport bill is approved in Parliament.

Deputy Prime Minister Tan Sri Muhyiddin Yassin said the Land Public Transport Bill will rationalise the entire sector and bring the regulation of most aspects of public transport under a single regulator.

"The land public transport sector is among very important sectors to the government. Without a good public transport system, the people's confidence in the government will erode," he said when speaking at Keretapi Tanah Melayu's (KTM) 125th anniversary celebrations here Monday.

Muhyiddin said the government, having realised the importance of the public transport system, has drawn out six policies to revamp the system and provide efficient service to the people.

He said the six aspects given priority are passenger safety, service efficiency, network, integrated transport system, monitoring and planning.

"From the development point of view for rail transport, the government will ensure rail transport become the backbone for the integrated public transport system," he said.

Muhyiddin said SPAD would be responsible for the Mass Rapid Transit (MRT) project for public transport that would be integrated with other rail transport providers, apart from KTM.

He added that the plan to be carried out at an overall cost of RM36 billion would be implemented in the early stages of the 10th Malaysia Plan (10MP).

Muhyiddin said KTM Berhad had contributed immensely, not only in areas of providing transport but in the development of land owned, like the Kuala Lumpur Sentral and Johor Baharu Sentral developments.

"Such assets will not only propel the progress of public transport system but development of the country as well," he said.

He said apart from historic corporate buildings at the Kuala Lumpur Railway Station and Ipoh Railway Station, KTM Berhad can also be proud of modern infrastructure which has replaced many stations with the implementation of the double-tracking project.

In addition to the Rawang-Ipoh, Ipoh-Padang Besar and Seremban-Gemas double-tracking projects carried out, another feasible study was being carried out for the double-tracking project from Gemas to Johor Baharu, he said.

In conjunction with KTM Berhad's 125th anniversary, Pos Malaysia and Bank Negara Malaysia would also issue commemorative stamps and coins.-- BERNAMA

Treasury Disputes Idris Jala's Data

By Asrul Hadi Abdullah Sani
Malaysian Insider, June 08, 2010

KUALA LUMPUR, June 8 — The Ministry of Finance disputed today findings made by Datuk Idris Jala and his Performance Management and Delivery Unit (Pemandu) in his argument for immediate subsidy cuts, in a major embarrassment for the minister charged with overseeing the administration’s key performance indicators (KPIs).

Treasury officers briefed Barisan Nasional (BN) backbenchers in Parliament today and indicated Idris (picture), the former Malaysia Airlines boss hailed as a hero for turning around the national carrier, had overstated his case for subsidy cuts with flawed statistics.

Using Pemandu findings Idris had predicted Malaysia could be bankrupt by 2019 if it did not begin to cut subsidies for petrol, electricity, food and other staples, which he said cost the country RM74 billion last year.

Prime Minister Datuk Seri Najib Razak also moved today to quell fears raised by Idris that Malaysia would one day go the way of Greece and Iceland and become a bankrupt nation by pointing out the government was taking steps to ensure that the country’s debts would be reduced.

In a briefing for the BN Backbenchers Club (BNBBC), Treasury officers said the country’s total subsidy bill was only RM18.6 billion, and not RM74 billion as stated by Idris, for 2009.

According to Pemandu figures, the country’s total subsidy was RM74 billion, which is equivalent to RM12,900 per household.

Pemandu said the government subsidises RM23.5 billion for fuel, RM4.6 billion for infrastructure, RM3.1 billion for food and RM41.8 billion for social welfare (health, education and higher education).

But the Finance Ministry said today the country’s total subsidy was RM18.6 billion or equivalent to RM3,246 per household.

It said that RM7.1 billion was spent for fuel, RM0.8 billion for infrastructure, RM2.9 billion for food and RM7.8 billion for social welfare.

A copy of the briefing notes was made available to The Malaysian Insider.

The Treasury briefing is set to further alienate Idris as Najib has distanced himself from the former corporate captain’s warning and said that his estimations were merely based on Pemandu’s studies.

Former premier Tun Dr Mahathir Mohamad has also ridiculed the minister in the Prime Minister’s Department, saying that Idris was exaggerating.

The Malaysian Insider understands that Idris has come under fire from Cabinet colleagues because his remarks had undermined Najib’s government.

Pemandu is also holding a briefing for the BNBBC tonight after many BN leaders had expressed dismay over Idris’s bankruptcy remarks.

The briefing is aimed at explaining its findings and receiving feedback from members of the BNBBC.

Lawmakers from both BN and Pakatan Rakyat (PR) have agreed that an immediate implementation of any subsidy cuts would spell political suicide for the Najib administration with the next general election within the next 34 months.

Najib has also stressed that the public would have the final say on whether expensive subsidies would be cut.

RM50b toll takeover plan for Cabinet to view

By Lee Wei Lian

June 01, 2010

Malaysian Insider

KUALA LUMPUR, June 1 — Asas Serba Sdn Bhd is hoping to present their plans to acquire the nation’s toll concessions before the Cabinet tomorrow to get the government’s backing, sources say.

Asas Serba is proposing to take all of the nation’s 23 toll road concessions private for RM50 billion and in exchange is promising to give a 20 per cent discount on toll rates as well as no further rate increases.

But the unsolicited proposal has not seen much traction within the Najib administration, government sources say.

When contacted, Asas Serba director Ibrahim Bidin didn’t deny that it aims to present their case before the Cabinet at its weekly Wednesday meeting. Such papers are normally submitted through the Finance Ministry or the Economic Planning Unit within the Prime Minister’s Department.

“No confirmation yet,” he told The Malaysian Insider.

In contrast to Asas Serba’s RM50 billion bid, government think tank Pemandu, as part of its subsidy rationalisation exercise, estimated that it will cost the government RM383 billion to nationalise the 23 toll concessions.

Asked about the difference between Pemandu and Asas Serba estimates, Bidin said that Pemandu’s figure appeared high but declined to elaborate as he hadn’t seen how it was derived.

Ibrahim said that Asas Serba has yet to appoint a financial advisor but has engaged a strategic consultant.

“The moment the government says that they want to see the final proposal then we will appoint a merchant banker,” he said. “I heard that the government is favourable to us.”

Local research house OSK Research said in a report that the Asas Serba bid to acquire toll concessions from a combination of public and private sector entities is complex and gaining approval from shareholders will be “daunting”.

Asas Serba has not approached the toll concessionaires directly but Ibrahim said that they will do so if the government gives them the “green light”.

For now, the company has focused its attention on government-controlled PLUS Highways which rakes in 61 per cent of the toll road revenue in the country.

Critics of Asas Serba’s bid, however, have questioned the company’s capability to raise RM50 billion in funds via dividend bonds, given that it is a little known entity, although some of its executives have experience in the toll concession business.

There has also been concern that Asas Serba’s proposal could potentially become a repeat of the Malaysia Airlines saga when a controlling stake in the national carrier was sold to businessman Tan Sri Tajuddin Ramli who later had to be bailed out by the government.

Ibrahim denied that the Asas Serba’s bid risks going the way of Malaysia Airlines.

“These are not new expressways but have known revenue streams,” he said, without explaining the difference with the flag carrier.

He stressed that under the Asas Serba proposal which promises no further toll rate increases, the government stands to save as much as RM114 billion in subsidies between 2010 until 2038 while consumers collectively stood to save as much as RM20 billion from the lower toll charges.

The government currently spends hundreds of millions in subsidies to compensate toll concessionaires for not raising toll rates as per their concession agreements.

Pemandu as part of its subsidy rationalistion proposal is recommending that rates be allowed to rise for toll roads that do not have alternatives in order to save the government as much as RM3.7 billion in subsidies over the next five years.

Mixed Reactions Over Plan To Cut Subsidies

May 28, 2010 14:17 PM

KUALA LUMPUR, May 28 (Bernama) -- The Transport Workers Union (TWU) has welcomed the government's openness in its subsidy rationalisation plan but said that subsidies on essential items should be retained.

Its secretary-general Datuk Zainal Rampak said doing away with subsidies on items such as flour and cooking oil would affect the low-income group.

"I don't quite agree if the government abolish the subsidies on these items because it will increase the price and burden those in the low-income group," he told Bernama.

He also called for a better deployment of subsidies for certain items and not abolishing them altogether.

For instance, he said, the government could deploy a better mechanism to implement subsidies on school textbooks because at the moment, even those from the affluent families benefited from the scheme.

"This constitutes a loss to the government," he said.

He was commenting on the proposal to reduce subsidies in stages as spelled out in the government's five-year subsidy rationalisation roadmap unveiled yesterday by Minister in the Prime Minister's Department Datuk Seri Idris Jala.

Idris said the move would save the government some RM103 billion during the period.

The Federation of Malaysian Consumer Associations (Fomca) advisor, Prof Hamdan Adnan, said the government should put in place a strong justification before cutting the subsidies so as not to burden the low-income group.

"The government should not hastily implement subsidy reduction," he said, adding that the government should also monitor any increase in prices arising from the move.

The Malaysian Muslim Consumers Association supported the subsidy reduction, with executive secretary Datuk Paduka Nadzim Johan saying it could spur productivity and overcome reliance on subsidies.

-- BERNAMA

Subsidy Cuts A Must To Save RM103 Billion In 5 Years To Reduce Deficit And Debt

May 27, 2010 20:46 PM

KUALA LUMPUR, May 27 (Bernama) -- Malaysians must bite the bullet and wean off subisidies to save the government RM103 billion in five years to reduce the nation's deficit and debt, said Datuk Seri Idris Jala, Minister in the Prime Minister's Department.

He said the government would focus on big ticket items such as fuel, electricity and toll to achieve the savings but it would continue to subsidise the poor and disadvantaged.

"The time for subsidy rationalisation is now. Otherwise, we have a time bomb on our hands," Idris said on the open day on the subsidy rationalisation plan proposed by the Performance Management and Delivery Unit (Pemandu) of the PM's Department.

Idris, who is Pemandu CEO, told a packed hall at the Kuala Lumpur Convention Centre, that Malaysia was one of the highest subsidised nations in the world and the subsidies must be phased out gradually.

"We do not want to end up like Greece. Our deficit rose to a record high of RM74 billion last year," he said, adding that at the rate, the nation could go bankrupt by 2019 with debts totalling RM1.158 trillion.

Meanwhile, the proposed subsidy cuts received mixed reaction from members of the public who attended the Subsidy Rationalisation Lab Open Day here.

"Subsidy is a financial aid given by the government to help the people reduce their cost of living, but it also has a negative impact on the country's economy," said Mardiah Madun.

Hence, the 26-year-old clerk said it was vital for the people to be educated on the negative repercussions awaiting the country if the subsidies were not cut.

Nirfadilah Azit, 32, on the other hand, said that despite being an acceptable proposal, the implementation of the move should be done in stages so that the people wouldn't be too shocked with drastic changes.

"If it is implemented simultaneously, I'm afraid the people will not be able to accept it and thus, blame the government," she said.

Meanwhile, a mechanic, Halim Salim, 36, described the proposal as a way to inculcate the spirit of being independent among the people.

"With the subsidy, the people have become too dependent on the government. Now that the government wants to cut the subsidies, maybe we all can learn to be more independent," he said.

For a civil servant who wanted to be known only as Mimi, 46, the subsidy cuts would give a major impact especially to the middle-income group.

"I think it should be further reviewed," she said.

-- BERNAMA

Malaysia Likely To Be Net Oil Importer By 2011

May 27, 2010 15:33 PM

KUALA LUMPUR, May 27 (Bernama) -- Malaysia is likely to become an oil importer as early as next year at the current rate it is consuming petroleum, Minister in the Prime Minister's Department, Datuk Seri Idris Jala on Thursday.

Malaysians continue to be among the highest fuel consumers per capita in the world fuel consumption habits pattern which generally has remained relatively unchanged despite increased oil prices in 2008.

He also said that approximately 70 per cent of the government's liquid petroleum gas (LPG) subsidy goes to commercial concerns and not the intended households.

About 30 per cent of the cooking oil subsidy is also abused, he said.

He said the government is proposing to phase out the petrol subsidy gradually in line with its move to strategically position Malaysia's economy on a stronger footing to realise the aspirations of Vision 2020, which is to achieve a developed, high-income nation status.

"Subsidies are an inaccurate representation of trade," Idris said when officiating the Subsidy Lab Open Day here to receive feedback from the public on subsidies.

"In addition, they pose a fiscal burden that emerging economies such as Malaysia should move away from. As such, we desperately need an exit strategy for subsidies, as they are unsustainable," he said.

"In order to save the country, we need to increase our GDP, Malaysians need to be aware we are giving the highest subsidies -- 4.6 per cent of GDP even higher than Indonesia (2.7 per cent) & Philippines (0.2 per cent)," said Idris, who is also the Chief Executive Officer of the Performance Management and Delivery Unit (PEMANDU).

Malaysia is one of the most subsidised nations in the world. Its total subsidy of RM74 billion in 2009 is equivalent to RM12,900 per household.

This covers the areas of Social (RM42.8 billion), Fuel (RM23.5 billion), Infrastructure (RM4.6 billion) and Food amounting to RM3.1 billion.

"All savings to reduce these savings are intended to reduce our deficit and debt of 103 billion in five years," he said.

Meanwhile, studies by Bank Negara have shown that inflation will rise to four per cent (2011-2012) and three per cent post 2013.

Subsidies only result in market distortion and they drain the government of much needed funds that could be better used for more strategic and pressing development projects for the rakyat, Idris said.

"The time for subsidy rationalisation is now," he said.

"We are reviewing the possibility of introducing a floating price mechanism, mitigation measures and assistance needed to put in place."

"We do not want to end up like Greece with a total debt of EUR300 billion. Our deficit rose to record high of RM47 billion last year."

"If the government continues at the rate of 12 per cent per annum, Malaysia could go bankrupt in 2019 with total debts amounting to RM1,158 billion," he cautioned.

-- BERNAMA

Government May Fork Out RM200 Billion In Petrol Subsidies If Price Not Increased

May 27, 2010 16:22 PM

KUALA LUMPUR, May 27 (Bernama) -- The government may fork out a staggering RM200 billion to subsidise petrol and diesel prices in the next 20 years unless fuel prices are raised, Minister in the Prime Minister's Department, Datuk Seri Idris Jala said on Thursday.

Fuel subsidies represent 5.0 to 44 per cent of Malaysia's fiscal deficit (and) "it is a huge burden for the country," he said when opening the Subsidy Lab Open Day here to receive feedback from the public on subsidies.

With Malaysia consuming more fuel compared with other countries in the region, he said "Malaysians need to be aware that we are one of the highest subsidised nations."

The difference between the pump price and actual market is subsdised, he said in his remarks to members of the public at the lab.

The lab comes under PEMANDU, the Performance Management and Delivery Unit of which Idris is the chief executive officer.

He said that crude oil price, currently hovering at US$71.51 per barrel, is expected to continue to increase to US$75.37 this year.

Idris said that the fuel subsidy should be reviewed because it mainly benefits the middle and high income groups.

"There are a lots of leakages. Malaysia will be a net importer of petroleum products by 2011 (and) the subsidy bill will increase to about RM200 billion in next 20 years," he said.

Idris said that the subsidy rationalisation lab studying the impact of subsidies on the economy has recommended that petrol price (RON 95) be raised by 15 sen from RM1.80 per litre to RM1.95 per litre between June and December this year.

The subsidy for RON 95 is currently at 44 sen per litre.

As for diesel sold at RM1.70 now, he said it should be increased by 10 sen.

The subsidy for diesel now amounts to 40 sen.

As for Liquefied Petroleum Gas (LPG), which was priced at RM24.50, it should be raised to RM27.

Idris said that petrol price should be increased 10 sen per litre gradually every six months and a 20 per cent incease in LPG price every year.

He said there should be a gradual reduction in subsidies so as not to burden the people.

The time is right to raise petrol prices as world crude oil price is relatively low at around US$71.65 per barrel, he added.

-- BERNAMA

Proposed Subsidy Rationalisation By Pemandu

May 27, 2010 21:00 PM

KUALA LUMPUR, May 27 (Bernama) -- Highlights of subsidy rationalisation proposal, mitigation measures and savings unveiled by Minister in the Prime Minister's Department Datuk Seri Idris Jala Thursday:

2009 SUBSIDY

*Total RM74 billion or RM12,900 per household

*Breakdown: Social RM42.8 billion, fuel RM23.5 billion, infrastructure RM4.8 billion, food (RM3.4 billion);

FUEL

*Petrol price will be gradually increased by 15 sen/litre, diesel price by 10 sen/litre, LPG by 10 per cent per litre by the middle of the year. Thereafter 10 sen per litre every 6 months and 20 per cent for LPG every year;

*Cash rebates of RM54 per person per motorbike (less than 250cc) and RM126 per person per car (less than 1,000 cc) totalling RM526 million;

*Government savings: RM44.9 billion over 5 years;

GAS

*Gas price (power) to increase by RM4.65/MMBTU

*Gas price (non power) to increase by RM2.52/MMBTU

*Electricity tariff by RM0.024/kWh;

Thereafter, gas price (power and non-power) to increase RM3/MMBTU and electricity tariff by RM0.016/kWh every six months;

*New electricity tariff will not impact 56 percent of consumers

*Government savings: RM35.9 billion over 5 years;

TOLL RATES

*Increase as per concession agreement applicable only for toll highways which have alternative routes;

*20 per cent discount for toll users upon next reload, applicable for more than 80 transactions per month; to cost government RM60 million;

*Government savings: RM3.7 billion over 5 years;

FOOD

*Sugar price to be increased 20 sen/kg every six months until 2012

*Flour price to be increased 20 sen/kg in 2010 and 25 sen/kg in 2011

*Cooking oil to be increased 15 per cent per kg in 2010 and 15 per cent per kg in 2011 and thereafter, 5 per cent per kg every year until January 2014;

*Cash rebate of RM20 to Mykad/MyKid card holders through post-offices in first year, to cost government RM560 million;

*In second year, discount through MyKasih Card for incomes below certain threshold) and use designated shops such as SaveMore, petrol stations at high poverty, to cost government RM200 milion per year;

*Government savings: RM8.5 billion over 5 years.

REDUCE WASTAGES & EFFICIENCIES

*Agriculture: usage of targeted fertilisers.

*Education: remove subsidies for foreign students and re-target subsidies for poor families.

*Fisheries: increase diesel price, increase incentives for fish caught from 10 sen to 50 sen/kg, maintain RM200 monthly allowance.

*Health: increase outpatient fees from RM1 to RM3, full subsidy for poor to continue;

*Wastages and efficiencies to be reduced by RM16.3 billion over 5 years;

TOTAL SAVINGS

*RM103 billion over five years;

*RM2.976 billion (2010), RM14.118 billion (2011); RM21.104 billion (2012);

*RM29.51 billion (2013), RM35.542 billion (2014).

POLL

*191 Malaysians polled via SMS, forms and online.

*61 per cent support subsidy rationalisation.

*66 per cent want subsidies reduced in 3-5 yrs.

-- BERNAMA

Rationalising Subsidies For Real Growth

May 27, 2010 12:15 PM

KUALA LUMPUR, May 27 (Bernama) -- Malaysia needs to rationalise its subsidy issue to move forward economically, Minister in the Prime Minister's Department Datuk Seri Idris Jala said Thursday.

Idris, who is also the Chief Executive Officer of the Performance Management and Delivery Unit (PEMANDU), said in addition to encouraging greater conservation and less consumption, Malaysia also needs to keep abreast of the global trend of less subsidies.

"Imagine, even Somalians are paying much more for petrol than Malaysians," he said at the Subsidy Lab Opening Day at the Kuala Lumpur Convention Centre (KLCC) here.

The lab, open from 9am to 2pm today, is being held to get suggestions and feedback from the public on the government's plan to reduce subsidy.

Idris said according to statistics from the Organisation for Economic Cooperation and Development (OECD), Malaysia's subsidy expenditure as a percentage of nominal gross domestic product (GDP) between 2006 and 2009, was at a staggering 11 per cent.

This, he added, was almost three times more than non-OECD countries like the Philippines and 55 times more than a OECD country like Switzerland.

"Our subsidy bill is not sustainable, especially in light of the rising budget deficit and government debt (as a percentage of gross domestic product). It is higher than Indonesia at 28 per cent and getting closer to the Philippines at 62 per cent," he highlighted.

According to Idris, a subsidy culture has negative consequences, staing that subsidies often go to wrong beneficiaries and are subject to leakages and abuses while promoting market distortions as well as encouraging over-consumption that results in over-production.

He said approximately, 97 per cent of Malaysia subsidies are dispensed on a "blanket" basis.

"It is given to everyone regardless of income level, for example, subsidised primary, secondary and tertiary education, medical services, petrol, sugar and cooking, as well as welfare aid and sustenance allowance," he explained.

The government, in its subsidy rationalisation framework will among others, focus on big ticket items to achieve bigger savings as for fuel, gas and toll while continuing to subsidise education, as it is a human capital investment.

Efforts will also be made to reduce wastage and abuse.

-- BERNAMA

Malaysia aiming for LTE auction in 2011

Malaysia aiming for LTE auction in 2011
Nicole McCormick April 26, 2010
telecomasia.net

The Malaysian government aims to auction three spectrum blocks at 2.6Ghz for LTE next year.

Toh Swee Hoe, senior director research and planning at the Malaysian Communications and Multimedia Commission (MCMC), told telecomasia.net it expects to sell two 70MHz blocks at 2.6GHz and one 50MHz block.

“There will be a public consultation later this year with industry on the marketing plan for the 2.6GHz,” Toh said.

But with only three proposed LTE licenses, one of Malaysia’s four cellcos – Maxis, Celcom, Digi and U Mobile – will miss out on the valuable broadband spectrum.

All four operators are offering HSPA services today. The natural technology progression will thus be LTE in a few years’ time.

In the meantime, the MCMC is conducting closed consultations with all four operators about refarming 2G spectrum at 850MHz, 900MHz and 1800MHz for 3G.

“Bids for the new tenure will limited to only [existing] 2G-3G operators,” said Toh on the refarming exercise.

The battleground for telcos in Malaysia is in the broadband space as operators strive to achieve the government’s goal of 50% household broadband penetration by year-end.

At the end of 2009, the penetration rate was 38.6%.

“We should achieve the 50% target,” said Toh.

He said the goal was dependent on 1 million netbooks with broadband subscription being distributed by end 2010.

If that happens, this “should bring our penetration to over 3 million households,” thus the 50% target will be reached, said Toh.

Source: http://www.telecomasia.net/content/malaysia-aiming-lte-auction-2011