MALAYSIA – …of scandals, corruptions, mad politics and stupid politicians


Malaysia is not like any other country. Its a “BOLEH LAND“, capable of everything and anything stupid.

All the ongoing and unresolved scandals and corruptions are nothing to be concerned about. They’re merely routine stuffs which will not in any way affect the economy, or the well being of the country and the rakyat (citizen).

Corruptions are rampant at the top level of govern-ment, and its not something new. IT IS THE way of life of Malaysian politicians and is the Standard Operating Procedure (SOP) for govern-ment linked companies (GLC) to do business. Non-compliance of this SOP will render any honest business/man a no-deal situation and he becomes obsolete.

ALL the political parties including the oppositions are in turmoil. This is not to be taken seriously. In house fighting, or gunning downs of inter-parties are normal scenarios and it does NOT mean the collapse of the Malaysian political stage.

The adorable Prime Minister Najib is not only the head of govern-ment but is also the “CEO” of ALL the GLCs. The scandals and corruptions in and around all the GLCs business deals, like the troubled debt ridden 1MDB, MARA, FGV, etc., etc., will not be audited, or investigated as they are found to be well within the policies and SOP.

IGP

IGP: No ‘sign’ of CBT in MARA’s Melbourne deal

KUALA LUMPUR, June 29 ― Malaysian police have not begun investigating the controversial Melbourne property purchase by Majlis Amanah Rakyat (MARA) Inc as the force has yet to find any element of criminal breach of trust (CBT) in the deal, Inspector-General of Police (IGP) Tan Sri Khalid Abu Bakar said today. – The Malay Mail Online

1MDB BOARD

1MDB board members to remain

KUALA LUMPUR: There is no proposal to change the board members of 1Malaysia Development Bhd (1MDB) who were appointed earlier, said Second Finance Minister Ahmad Husni Hanadzlah. – FMT

Malaysia is unique in that she stands on her own in every way and is very different from any other country on Earth:

  • The political system is strangely original
  • The system of govern-ment is self-styled
  • The legal system is of local invention
  • The Federal Constitution is self authored
  • The financial system is stand alone

Everything Malaysians do, eat, dress, belief and believe are all original Malaysian designed and invented.

Malaysia is not influenced by anything outside and therefore will never be affected by what goes on around the flat earth. This has been duly verified by the affable Finance Minister regarding the financial crisis that is affecting and worrying the rest of the world:

najib

Greece financial crisis has no systemic effect on Malaysia, says Najib

Prime Minister Datuk Seri Najib Razak said the financial crisis in Greece will not have any systemic effect on the Malaysian economy. – The Malaysian Insider

Due to her autonomic nature, Malaysia is stoic and will sail safely in any political, or financial storm and that is reflective of the plunging Ringgit.

392_moneyAP

Minister: Malaysian ringgit could plunge to 1998 levels if 1MDB debt unpaid

Explaining this, the second finance minister said if Putrajaya is forced to shoulder the 1MDB debt of RM42 billion on top of its development expenditure of RM52 billion for next year, it would cause the government to fail to meet its targeted Budget 2015 deficit of 3.2 per cent and revert to over 4 per cent instead, he said.

“What will happen? Our ratings will drop, when our ratings drop, our companies borrow from abroad, our currency value will drop like in 1998 then, when our ringgit at one point was over RM4, how to pay debts? – The Malay Mail Online

When the rest of the world collapse Malaysia will remain standing and Malaysians will proudly sing the national anthem “Negara-Ku” (My Country)

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Malaysia – The Sinking Ship


M.V. Malaysia is a sinking ship. The conniving Captain steered it into an iceberg of a bagful of scams. The crews made up of UMNO scumbags made sure all the life-jackets are removed to ensure no passenger on board will survive.

The ship actually belongs to the central bank$ters who have been ripping the passengers right from the beginning of the death voyage.

Sinking ship

Thank you stupid Malaysians! Its been nice doing business with you!

The Bagful Of Scams

1 Malaysia Development Berhad (1MDB)

1Malaysia Development Berhad (1MDB) is a strategic development company, wholly owned by the Government of Malaysia.[1] 1MDB was established to drive strategic initiatives for long-term economic development for the country by forging global partnerships and promoting foreign direct investment.[2] 1MDB is currently involved several high-profile projects such as the Tun Razak Exchange, Tun Razak Exchange’s sister project Bandar Malaysia and the acquisition of three Independent Power Producers. – Wiki

The 1MDB Scandal

Set up independent panel to probe into 1MDB, says Dr M

Unhappy over the lack of answers given by Datuk Seri Najib Razak on the 1Malaysia Development Berhad (1MDB) issue, Tun Dr Mahathir Mohamad said the government needs to set up a “totally independent commission” to investigate the debt-ridden government-owned investment company. – The Malaysian Insider

1MDB and money politics in General Election 2013 (GE13)

The Prime Minister, Genting Berhad, 1MDB and YR1M must not only be investigated by the Election Commission (EC) for committing electoral fraud as demanded by Bersih, they must be investigated by both the police and the Malaysian Anti-Corruption Commission (MACC), for possible embezzlement and misappropriation of public funds, criminal breach of trust (CBT) as well as corrupt practices. – FMT

Wall Street Journal (WSJ) report:

Malaysia – …of Debt Ridden #1MDB, #YR1M, Genting Plantations, Najib and money politics

.

Scooping of Public Funds

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GST

During the death voyage the Captain and crews robs the passenger of every penny

GST

Corruption in MARA’s Melbourne Deal

Australian newspaper The Age reported yesterday that a high-ranking Mara official, a senior official of the government-linked company and a former politician had spent millions of government funds to buy an apartment block in Melbourne and had received kickbacks.

It said “a group of very rich Malaysians” had overpaid A$4.75 million (RM13.8 million) for the apartment block in the city. – The Malaysian Insider

Malaysia – …of Debt Ridden #1MDB, #YR1M, Genting Plantations, Najib and money politics


The dirty money trail of Malaysian Politics

WSJ

Fund Controversy Threatens Malaysia’s Leader

Debts run up by state development fund 1MDB have roiled Malaysia’s markets and led to calls for its leader to step aside

najib razak

Malaysia’s state investment fund indirectly supported the election campaign of Prime Minister Najib Razak, according to a Wall Street Journal examination.

.

June 18, 2015 10:34 p.m. ET

KUALA LUMPUR, Malaysia—A state investment fund is at the center of a burgeoning political and financial controversy that is roiling markets and leading to calls for the ouster of Malaysia’s prime minister.

The fund, 1Malaysia Development Bhd., or 1MDB, was set up to spur economic growth in Malaysia. But it has rolled up more than $11 billion of debt that it now struggles to repay, and has invested in such projects as power plants in foreign countries and an oil venture abroad that yielded no oil.

Another fund initiative: Amid a close election, it indirectly supported Prime Minister Najib Razak’s campaign, according to an examination by The Wall Street Journal.

The fund paid what appeared to be an inflated price for assets acquired from a Malaysian company; the company then contributed to a Najib-led charity that announced projects, such as aid to schools, that Mr. Najib was able to tout as he campaigned.

Concerns over 1MDB’s high debts and limited transparency have triggered four government investigations. The concerns also have set up a confrontation between Mr. Najib and his mentor, Mahathir Mohamad, who led Malaysia for 22 years.

Mr. Mahathir says 1MDB’s assets are too meager for its huge debts. “What happened to that money?” Mr. Mahathir said in an interview. “They can’t explain.” He has publicly called on Mr. Najib to resign, as have other former allies from the ruling party and opposition politicians.

Were the prime minister to heed such calls, the result could be a setback for U.S. interests in Southeast Asia. Under Mr. Najib, relations with the U.S. have improved as Washington tries to build up its alliances in the region to counter China’s rise.

Mr. Najib, who is chairman of 1MDB’s board of advisers, has said he did nothing wrong and has urged critics to wait for the results of the investigations. His office didn’t respond to specific questions about the fund’s activities, including about any role in election-related spending.

“Unfortunately, the prime minister’s political opponents, unwilling to accept his record or the facts, continue to try to undermine him with baseless smears and rumors for pure political gain,” his office said.

Debt levels

Though wholly owned by the government, 1MDB isn’t government-funded, except for a small initial amount; it has to raise money in the debt markets for its projects. In an “F.A.Q.” section of a news release in December, 1MDB said there was no reason to be concerned about its debt level.

Still, the fund has at times rescheduled its debt repayments. And in May, 1MDB got a $1 billion capital injection from a state fund in Abu Dhabi—a close ally of Malaysia—to help meet a looming loan repayment. Interest costs ate up half the fund’s revenue in the year ended March 31, 2014, the last for which the fund has filed a financial report.

Arul Kanda, 1MDB’s president and group executive director, said the fund hopes to repay debt by selling assets, which he said are worth more than its borrowings. In an emailed response to questions, he said the government has guaranteed only 14% of 1MDB’s total debt, limiting its exposure.

Mr. Arul, who was appointed in January, also said that “1MDB’s financial decisions are driven by the best interests of the business, not political considerations.”

Worries about 1MDB’s debt have helped make Malaysia’s markets among the worst performers in the world in recent months, according to investors. Malaysia’s currency, the ringgit, has fallen 6% against the U.S. dollar this year, to its weakest in almost a decade. Though credit-rating agencies consider Malaysia’s debt safe, government bond prices have fallen, and foreign investors are pulling cash out of the country’s markets at an accelerating rate.

Some investors are betting the Malaysian government will end up bailing 1MDB out. Moody’s Investors Service has estimated such a rescue could cost as much as 1.4% of the country’s annual economic output. Meanwhile, Malaysia is facing low prices for its major exports: oil, natural gas, palm oil and rubber.

“At the end of the day, this entire entity is owned by the Ministry of Finance,” said Dhiraj Bajaj, a fund manager with Swiss bank Lombard Odier Darier Hentsch & Cie., who bought more 1MDB debt after recent declines, betting the government will step in with a bailout if needed.

Prime Minister Najib faced political problems almost immediately after he took office in 2009.

His party, the United Malays National Organization, had only narrowly retained power a year earlier. UMNO has headed every government since Malaysia gained independence from Britain in 1957. It has been losing the financial backing of the country’s ethnic Chinese minority, who dominate the economy but have been growing frustrated with government programs that favor ethnic Malays. The ebbing support, according to party insiders, forced Mr. Najib to look for other sources of financing.

Mr. Najib formed 1MDB in 2009, saying the fund would develop lucrative industries and create a new financial district in Kuala Lumpur that later was named after his father, the country’s second prime minister. Besides its development efforts at home, the fund has poured money into investments such as power-plant purchases abroad and a since-liquidated venture with a Saudi oil company. The fund has said it made money on the oil venture but hasn’t disclosed details.

Paying a high price

1MDBtrail

In one power-plant deal, the seller was Genting Group, which calls itself Malaysia’s leading corporation. The sprawling real-estate, plantation, hospitality and casino company owns New York City’s only casino and just broke ground on a $4 billion Chinese-theme casino in Las Vegas. The 1MDB fund in October 2012 acquired a Genting unit that owned a 75% stake in a 720-megawatt coal-fired power plant near Kuala Lumpur. The price, which was equivalent to about $740 million at the time, came to 2.3 billion Malaysian ringgit. Genting later reported it had a 1.9 billion-ringgit extraordinary gain on this sale, implying a value for its stake in the power plant of just 400 million ringgit—or less than one-fifth what 1MDB paid for it.

In a second sign that 1MDB paid a high price, the fund’s financial statement for the fiscal year ended in March 2013 said the power unit’s property, plant and equipment were worth a little under 500 million ringgit at the time of acquisition.

The fund cited 1.7 billion ringgit of “intangible assets,” which were the value of the plant’s agreement to sell power to a state-owned entity. But this valuation appeared to be contingent on Genting obtaining a renewal of its power-sale agreement, which was running out in 2016.

Genting announced the terms of the sale to 1MDB in August. Equity analysts at the time noted the size of the deal was positive for Genting given its contract to sell power was ending. In early October, Malaysia’s Energy Commission, an independent body which regulates the energy sector, announced Genting had won a 10-year extension to sell power through 2026. A few days later, Genting and 1MDB finalized the sale.

Soon after the purchase, 1MDB appeared to recognize that it had overpaid for power assets. In its financial accounts for fiscal 2013, the fund took an “impairment” charge of 1.2 billion ringgit, writing down part of the premium it had paid to acquire power assets from Genting and another Malaysian company.

The 1MDB fund said the premium it paid reflected the experience of the staff of the Genting unit. Mr. Arul, 1MDB’s president, said in a December news release that the valuation was “commensurate with their existing and future potential” at the time.

A few months after the sale, a unit of Genting called Genting Plantations Bhd. made a donation of about $10 million to a Najib-linked charity, according to a spokesman for Genting Plantations. The charity, Yayasan Rakyat 1Malaysia, lists Mr. Najib as chairman on its website. Stock analysts at the time said the surprise donation reduced the company’s net profit in the first quarter of 2013, and said they didn’t expect it to be repeated.

Though set up to help underprivileged Malaysians through education and sport, this charity soon got involved in spending that appeared designed to help Mr. Najib retain power in a May 2013 election.

It and other charities linked to the government spent millions of dollars before the voting in Penang, a northern state that was an important election battleground. Mr. Najib visited Penang during the campaign and announced that Yayasan Rakyat 1Malaysia would donate two million ringgit (about $660,000 at the time) to two local schools. These schools serve Chinese communities that are not a poor demographic, but whose support would be crucial to win voting in the area.

Mr. Arul, 1MDB’s president, referred questions about the matter to Genting and to the charity.

A Genting spokeswoman declined to comment on the charitable donation or the valuation of the plant sold to 1MDB.

The charity, too, declined to comment. Regulators say the charity has failed to file required financial statements since its inception in early 2013.

Before the election

Also active in Penang just before the May 2013 election was 1MDB itself. The fund purchased land in the state days before the voting.

Mr. Najib, campaigning in Penang, promised to build low-cost housing on the land.

Critics said 1MDB’s spending amounted to the use of state funds for electioneering. “They’ve shown they’ve got lots of cash to throw,” said Lim Guan Eng, Penang’s chief minister and a member of the opposition Democratic Action Party.

Mr. Arul of 1MDB declined to comment on the fund’s land purchase. He referred questions to Mr. Najib, whose office didn’t address such specifics in its response.

Opposition politicians also have criticized 1MDB for raising billions of dollars just weeks before the 2013 election. In March 2013, the fund sold $3 billion in bonds.

Goldman Sachs Group Inc. arranged the bond sale and took on extra risk to get the deal done quickly at 1MDB’s request, according to a person familiar with the matter, earning unusually high profits as a result. Goldman, which also was 1MDB’s financial adviser on the purchase of assets from Genting, declined to comment. The 1MDB fund, when asked about criticisms of the fund-raising, pointed to a past statement it had made in defense of the $3 billion bond, which said it was issued at a typical discount.

The results of the May 2013 election turned out to be the worst yet for UMNO’s ruling coalition. It not only didn’t prevail in Penang but didn’t win a majority of the national vote, either. Mr. Najib remained in power only because of electoral rules that give more parliamentary seats to candidates from UMNO’s rural heartlands.

Last month, in an election to fill a vacant seat in parliament, 1MDB used the Twitter feed of its foundation to promote the government’s candidate. A 1MDB spokesman declined to comment.

The financial situation appears to be deteriorating for 1MDB. The fund has shelved plans for an initial public offering of its power plants, a move it had hoped would raise $3 billion.

The government recently stepped in with a $260 million emergency line of credit after 1MDB had to renegotiate a loan payment to a consortium of banks.

“Like many companies, we examine our financial arrangements and restructure these from time to time in order to ensure that the company is receiving the best possible terms,” said 1MDB’s president, Mr. Arul.

The 1MDB fund recently sold some land to another state fund, one that invests money for Malaysians who want to make a pilgrimage to Mecca. Mr. Arul denied suggestions from critics that a sale to another government fund amounted to a partial bailout. The pilgrimage fund’s chairman said he expects to make a profit on the deal.

Malaysia’s police, auditor general and a parliamentary committee are investigating the fund’s investment activities. This month came word of a fourth probe, as Malaysia’s central bank launched an investigation of 1MDB’s offshore borrowings and foreign investments.

Write to Tom Wright at tom.wright@wsj.com

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Whistleblower gets USD47m reward on #MH17


FreeMalaysiaToday

Something is expected to happen very soon on the story of the ill-fated Malaysia Airlines Flight MH17 shot down over eastern Ukraine.


MAS

KUALA LUMPUR: A German detective, Josef Resch, has been quoted as saying by the UK-based International Business Times that a whistleblower who had information on the ill-fated Malaysia Airlines Flight MH17 has collected a reward of USD47 million.

Resch confirmed that his client had paid the entire amount to the anonymous source. The bounty is considered to be one of the largest in history. The United States offered around USD25 million for information about Al Qaeda mastermind Osama bin Laden.

He told Germany’s Capital magazine: “Our clients have got all the information they wanted to get, so my job is finished.”

“I expect something will happen very soon. Anyone who pays that kind of money for information does not keep it to himself.”

The aircraft crashed in eastern Ukraine on July 17 last year with 298 people on board, four months after Malaysia Airlines Flight MH370 went missing on March 8 on a routine Kuala Lumpur to Beijing flight.

Al Arabiya reported that the anonymous source revealed that pro-Russian forces had shot Flight MH17 with a missile in Ukraine. It also reported that the source told the German investigator that the separatists had mistaken the flight for a military aircraft.

Resch, head of Wifka, the company investigating the crash, has refused to name his source, however. Nor has he revealed the exact information the source provided. According to the German private investigator, a mysterious client hired him in 2014 to find out the truth behind the crash.

Resch said he would not be able to reveal the information provided by the source because he was restricted by a non disclosure agreement. He also said that he was unaware of the identity of his client. According to him, the dealing was done through a Swiss agent.

“Our clients have got the information they wanted to get, so my job is finished,” the Telegraph quoted the detective as saying. “I have a request: that my client makes the information public.” Nevertheless, he added that he feared that the information might never be made public as the situation would be “handled internally.”

While Western nations have strongly claimed that pro-Russian forces shot the flight with a BUK surface-to-air missile, there has not been any conclusive evidence to support that.

According to the Kremlin, it was the Ukrainian military that shot down the Boeing passenger jet carrying 298 people.

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Malaysia – Democracy was a stillbirth


Dictators rule the country. Democracy is just another word. The people are subjugated and enslaved by a fancy word and ruled by a rotten system which was shoved down our throats when we achieved “independence” from the British Empire on 31, August 1957


MALAYSIAN MEMBER OF PARLIAMENT (MP) 101

A parliament is a legislature. More specifically, “parliament” may refer only to a democratic government’s legislature. The term is derived from the French ‘parlement’, the action of ‘ p a r l e r ‘ (“to speak”): a ‘parlement’ is a discussion. (wiki)

Parliament

To become a Member of Parliament one has to contest for a Federal seat in the General Election in one’s chosen constituency. On winning, one gets a seat to represent one’s constituency in Parliament.

The core job of an MP is to be the “speaker”, a representative of the people in his constituency. He will table any issues and grouses from his constituency, and seek rectification and solutions from Parliament.

The next job for an MP is legislative, in which he is basically a Lawmaker. He could propose and table a new Bill to be enacted by Parliament. He is in the whole process on lawmaking of reading and passing a law.

That’s the Bird’s EYE-VIEW of an MP.

Malaysian Law is a hand down of British Law and thus the whole process of government and parliament is typically British.

Now we get to the govern-ment part of the Prime Minister and the Cabinet Ministers.

In Malaysia an MP could also be a Minister in govern-ment. How is that? The political party that wins the General Election is technically the party that forms the govern-ment. The party chief will be by tradition (not by Law) becomes the Prime Minister. He then picks from the winning MPs in the party to choose as his cabinet Ministers.

What we get in this so called Democratic system is a Democracy only in the form of the elected MPs to talk and make Laws in Parliament, and that is if the election is not rigged.

Now we get to the part that confuses and messes up the whole democratic system.

The Constitution of Malaysia

A Constitution is basically a Rule and Guide Book. In it contains the fundamental laws of the country and the basic fundamental rights of the citizens. Every citizen should have a copy to read and refer.

The Constitution is the highest Law of the land of any country. A breach of any of its laws renders the offender as Un-Constitutional. One hardly pay much attention when a constitutional issue is argued in the courts as its not as sensational as a criminal case or a divorce case. Its a purely intellectual case and the sentences are mostly if not all non-imprisonment nor monetary fines. Ironic come to think of it as its pertaining to the “highest and fundamental laws”.

Anyway, the point of bringing in the Constitution and Constitutional Law in this essay is to give the wider picture of the MP, PM, Ministers and the govern-ment.

There is a very important doctrine in Constitutional Law in respect to governance of a country, which is the doctrine of The Separation of Powers.

Basically a govern-ment is constructed of three main branches:

  1. The Judiciary
  2. The Legislative
  3. The Executive

The Judiciary comprises of the Judges, the Courts of Law and the officers of the law. Its all about operating the laws of the country.

The Legislative comprises of the MPs who are the Lawmakers in Parliament.

The Executive is the Administrator of the country and comprises of the Prime Minister and the Cabinet Ministers

According to the doctrine of The Separation of Powers the three branches of the govern-ment must be strictly separated in form, jurisdiction, personnel and roles. No branch is to cross the lines.

The idea is to maintain balance, fairness and justice in governance, and to avoid corruption in the govern-ment

“Power tends to corrupt and absolute power corrupts absolutely.” – Lord Acton

The lines of the Separation of Powers in Malaysia have been erased and crossed since the beginning.

The Judiciary has crossed the Legislative line, as the Judges are making laws in the courts. Not by Parliamentary Enactment but by what is called “Judge made laws”. Judgements by Judges in previous cases are as good, valid and equal to laws when “precedents” are being applied in future cases.

The Legislative line is criss-crossed with the Executive line as most if not all of the Ministers in the govern-ment are also MPs.

What is the implication of this? Every one in the three branches make laws. Absolute power is at play, a hidden dictatorial govern-ment rule over the people.

Democracy died at birth.

“It means that the whole nation is by way of becoming a herd of sheep, constantly relying on a shepherd to drive them into good pastures. The shepherd’s staff soon becomes a rod of iron, and the shepherds turn into wolves” – Carl Jung

The politicians can make any law at their whims and fancies to control.

Who is to stop them?

The people depend on their respective MPs to protect them in Parliament. But the MPs are also part of the Executive who now wants to control them!

The people are vulnerable, naked without any form of protection and defense.

Hence the laws to control the people are being canned out by the dozens…The Sedition Act, POTA, COTA, etc., etc.,

The scenario in Malaysian politics is at its ebb. Politicians are showing off their powers. They are arrogant in words and actions in public. The trend for all the politicians now is their yellings of “We are elected!”

Elected to what and do what? As MPs are also Ministers they totally disregard their constituents and behave like they are Lords from Heaven and slam, or threaten at any one who criticizes them.

This scenario is expected and is of no surprise to me because the rotten system allow for it and the people themselves consented when they went to the polls.

Ignorance is no bliss..and surely is no excuse for you and I.

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MALAYSIA – The Prime Minister Robs The People To Pay For His Misadventures


Najib has the cheek to say it out to the people that the people have to pay (via GST) for his misadventures, or the country go bankrupt!

Why rob the Rakyat to pay the banksters?
Who borrowed?
The Rakyat?
#1MDB board and management go scott free for their crimes?

You as the PM and FM MUST FACE THE CONSEQUENCES!
If 1MDB MAKE PROFITS WHO GETS IT?
THE RAKYAT?
NO NO NO
THE RAKYAT WILL NOT AND DO NOT CONSENT TO PAY!

I Do Not Consent


TheStarOnLine

Najib: It’s either GST or facing bankruptcy

Najib

KUALA LUMPUR: Malaysia has a stark choice of either increasing government revenue via the goods and services tax (GST) or burdening the country by borrowing more money.

Prime Minister Datuk Seri Najib Tun Razak said the implementation of GST was necessary as the country risked becoming bankrupt like Greece if it resorted to borrowing.

“We have to find additional sources of income and that’s why we have to implement the GST,” he said at a seminar on Strengthening the National Economy.

He said rating agency Moody’s Investors Service changed their outlook on Malaysia from neutral to positive just weeks after the GST was announced.

“This is because they know Malaysia was taking fiscal consolidation steps which are unpopular but necessary for the good of the country,” he said.

Najib lashed out at the Opposition for their mixed comments about whether they supported the GST and for clouding the issue with unfair arguments, including the high electricity bill of his official residence,

He pointed out Seri Perdana belonged to the people of Malaysia and he was occupying it temporarily just like his two predecessors.

“It has a function room. If a head of state comes, are we expected to dine in the dark?

“If the Chinese premier comes, should we use candlelight and say this is more romantic?” he quipped.

Najib said out of an entire workforce of 14 million, only 1.34 million paid income tax.

“That is just 10% who pay, and there are others who should pay but don’t,” he said.

He pointed out the definition of patriotism is fulfilling one’s responsibility to the country and this included paying taxes.

He added that the public’s expectations on the Government was always increasing, and more revenue is needed to meet these demands.

He said Malaysians cannot always depend on revenue from petroleum which will eventually run out.

Najib said the public’s fear that the GST would cause staggering price increases was unfounded.

He said 160 other countries have implemented the GST and from their experience there is only a slight increase in prices in the year of implementation.

“It is unlikely all these countries made a mistake by implementing the GST,” he said.

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The nefarious Malaysian law – The Central Bank Act of Malaysia 2009


Be known that the central bank in Malaysia is “Legalized” and its powers are embedded and entrenched in the Laws of Malaysia Act 701 and called the The Central Bank Act of Malaysia 2009, which repealed the original 1958 Act.

bnm

Here are snippets of the Act which I find suspiciously nefarious in nature and of concerned:

The Act

An Act to provide for the continued existence of the Central Bank of Malaysia and for the administration, objects, functions and powers of the Bank, for consequential or incidental matters.

Part II

Section 3

(4) The Bank shall have its Head Office in Kuala Lumpur and
may open branches and appoint agents and correspondents in or
outside Malaysia

Section 4

Central bank for Malaysia
The Bank shall be the central bank for Malaysia

Principal objects and functions of the Bank
Section 5.

(1) The principal objects of the Bank shall be to promote
monetary stability and financial stability conducive to the sustainable
growth of the Malaysian economy.

(2) The primary functions of the Bank are as follows:

  • (a) to formulate and conduct monetary policy in Malaysia;
  • (b) to issue currency in Malaysia;
  • (c) to regulate and supervise financial institutions which are
    subject to the laws enforced by the Bank;
  • (i) to act as financial adviser, banker and financial agent of
    the Government.

(3) The Bank shall have all the powers necessary, incidental
or ancillary to give effect to its objects and carry out its
functions. {emphasis added}

(5) For the purposes of carrying out its functions under this
Act, the Board may issue by-laws as are necessary and expedient
in relation to the administration, affairs and business of the Bank
or in respect of any other matters as set out in this Act.

PART IV

GOVERNANCE OF THE BANK
Board of Directors
Section 14.

(1) There shall be a Board of Directors of the Bank.

(3) The Board shall consist of the following members:

  • (a) the Governor;
  • (b) not more than three Deputy Governors; and
  • (c) not less than five but not more than eight directors
    appointed under subsection 16(1).

Governor and Deputy Governor

Section 15.

(1) The Governor shall be appointed by the Yang di-Pertuan
Agong and the Deputy Governors by the Minister. {…and as such answerable only to}

(6) The Governor shall manage the Bank and may, unless
otherwise provided under this Act or any other written law,
exercise all powers and do all acts which may be exercised or
done by the Bank under this Act or such written law.

(10) The Governor and Deputy Governors shall be accountable
to the Board for their acts and decisions. {…and NOT to any one else}

PART V

MONETARY FUNCTIONS AND OPERATIONS OF THE BANK
Monetary policy
Section 22.

(1) In promoting monetary stability, the Bank shall pursue
a monetary policy which serves the interests of the country with
the primary objective of maintaining price stability giving due
regard to the developments in the economy.

(2) The monetary policy of the Bank shall be formulated and
implemented autonomously by the Bank, without any external
influence.

Chapter 2

Money market and foreign exchange market
Rules, guidelines, etc., for money market, etc.
Section 43.

(1) The Bank may issue rules, codes, standards, principles or
guidelines for the purposes of regulating, developing, or maintaining
orderly conditions or the integrity of, the money market, the
foreign exchange market or the market for the derivatives related
to the currencies, securities and other financial instruments traded
in these markets.

(2) Without prejudice to the generality of subsection (1), rules,
codes, standards, principles or guidelines may be issued in respect
of the money market, the foreign exchange market or the market
for the derivatives related to the currencies, securities and other
financial instruments traded in these markets

PART VIII

CURRENCY

Right to issue, print or mint currency
Section 62.

(1) The Bank shall be the sole authority to issue currency
notes and coins in Malaysia and such notes and coins shall only
be printed or minted by or under the authority of the Bank.

(2) The Government, any State Government, public authority,
financial institution, other institution or person shall not issue,
print, mint or authorize the printing or minting of currency or any
document or token payable to bearer on demand being documental
tokens, which in the opinion of the Bank, are likely to pass as
legal tender.

Voila!…this is the MOST important part of the whole Act. Now who drafted these words? Under normal circumstances, all bills and acts are proposed and presented by the legislative council, debated upon before its is passed as an Act in Parliament.

It is highly unusual, or rather weird that the legislative who mostly are the executives (Ministers in govern-ment) would shackle and prohibit themselves to anything, and then enact them. No sane group of people who called themselves as the govern-ment would ever commit themselves to any kind of prohibitions.

Imho, this piece of Act is NOT the product of the Malaysian govern-ment, but rather from a “higher” authority and the govern-ment was compelled to do so.

This Act appears on Bank Negara’s website on a page entitled Administered Legislation. What does Administered legislation means? Who administer it? It is not expressed anywhere in the Act who the administrator is, or under which govern-ment ministry it is under. By implication and the absence of any expression it seems to me that it is self administered i.e. by the central bank itself, or the Board, or the Governor. That’s freaking powerful in my opinion.

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