Seven reasons why Malaysians are struggling to put food on the table — Anil Netto |
- Seven reasons why Malaysians are struggling to put food on the table — Anil Netto
- MH370: a wake-up call for our political dreamers — Lim Sue Goan
- Decrepit homes and crumbling shops: this Portugal tour starts here
- Rodgers calls record-equalling Suarez ‘remarkable’
- Ruling to strike down Michigan gay marriage ban put on hold
| Seven reasons why Malaysians are struggling to put food on the table — Anil Netto Posted: 22 Mar 2014 05:58 PM PDT
The higher prices of basic foodstuff, along with the overall higher cost of living, is a major issue in the Kajang by-election. In an Umcedel survey, 69 per cent of respondents in Kajang reportedly felt that the increasing cost of living would raise support for Pakatan Rakyat. This may be a fair reflection of sentiment across the country and could favour opposition parties. The soaring price of produce, along with higher property and motor vehicle prices, has emptied the pockets of low-income and even middle-class households. In coffee-shops and private homes, friends and relatives huddle together and grumble about the latest price increases in the local wet market. Soaring food prices are a symptom of something deeper at work and signals that all is not well with the economy, which is also exposed to global forces. This article will discuss some possible reasons why people are feeling burdened despite fairly rosy GDP growth figures. Removal of subsidies The removal of subsidies for oil and higher electricity and gas tariffs will result in higher costs (shipping, lorry transport, refrigeration etc) incurred in bringing fruit and vegetables to the public. These charges will invariably be passed on by food vendors and suppliers through higher prices. The removal of subsidies followed concerns expressed by an international rating agencies, which downgraded Malaysia's credit rating from stable to negative. Fitch Ratings cited concerns over public finance as a key issue. But instead of cracking down on wasteful spending and rampant corruption, the government adopted a neoliberal approach by slashing subsidies. While some subsidies like those on petrol may also benefit the rich, the government has not invested enough in public transport across the country to ease the burden of the lower-income group who will find the higher fuel prices a burden. The removal of subsidies has had the effect of reducing disposable income among the ordinary people, making it more difficult for them to afford higher food prices. Monopolies and cartels When basic food supplies such as rice and sugar are controlled by well-connected monopolies or cartels then the public is at the mercy of these companies when prices are set. For example, the Padiberas Nasional Berhad (Bernas) group of companies, owned by Syed Mokhtar Al-Bukhary, is involved in the procurement and processing of paddy along with the importation, warehousing, distribution and marketing of rice in Malaysia. The firm controls about 24 per cent of the paddy market and 45 per cent of local rice demand. With the removal of rice subsidies in Thailand, more Thai rice could reportedly be made available on the international market and with the increased supply in the regional market, the price of rice imports into Malaysia could fall. Concern has been expressed that the benefit of this lower-priced rice could be reaped by Bernas while the public and the 142,000 local rice farmers may not be any better off. Or take the sugar market, which is controlled by the well-connected Malaysian Sugar Manufacturing Bhd and Tradewinds Bhd. Opposition politicians have claimed that the removal of the sugar subsidy at the last Budget would result in higher profits of up to 100 per cent. In addition, MP Tony Pua claimed that the government had committed to a three-year raw sugar import deal at US$26 (RM78.54) per 100lbs (45.3kg) in January 2012, when the global market price for raw sugar then was at US$23.42 (RM73.57). But by January 2014, the global price had dipped to below US$16. Shrinking agriculture land Increasingly, as agricultural land in urban centres and their fringes is converted to 'mixed development', high-rise condos have sprouted on former farm lands. Elsewhere, priority has been given to monocropping and cash crops, which can damage the overall environment and reduce biodiversity. Urban vegetable farms are vanishing as they make way for high-rise super condos. Unfortunately, we do not have community organic gardens to make up for the loss of local supply. Where once it was common to see banana trees growing in our neighbourhood, that is not so anymore. Local bananas, which used to cost RM3.50 per kg, are now sold at RM5. This means more food has to be transported from a longer distance, usually Cameron Highlands or even imported. It is not uncommon to see people waiting at a vegetable stall for the lorry from Cameron Highlands to arrive. As petrol prices inch upwards, the cost of transporting food follows suit, what more when food has to be transported from farther away, and this invariably pushes up the price of food. Food imports and depreciation of the ringgit If you visit a stall selling vegetables and fruit, chances are half the produce is likely to be imported from countries such as the United States, China, Australia, New Zealand, India and South Africa. Imported fruit may even be displayed more prominently than their local counterparts in such stalls. Moreover, a significant portion of our rice requirements is also imported. We may be self-sufficient in poultry, eggs and fisheries — but we are also importing beef, mutton and milk. This makes us highly dependent on imports for our food security. No wonder our food trade deficit has soared from RM1bn in 1990 to RM13bn in 2013. Along with this external dependency comes vulnerability to fluctuations in the exchange rate of the ringgit against the US dollar. Over the last year, the ringgit has steadily weakened against the US dollar from about 3.00 last May to about 3.30 now. That is a weakening of about 10 per cent and it is bound to be reflected in the rising price of imported produce. Property development and higher business costs Over time, as interest rates were kept low and as cheap money flooded this region, speculation in property development intensified as people tried to maximise their returns. This has driven up property prices and rentals in the country. In turn, the cost of doing business has risen. As property prices and rentals go up, two things happen. These higher business costs have cut into business profits, thus putting downward pressure on workers' wages, which in turn reduces the purchasing power of ordinary people. They also translate into higher prices of foodstuff as fruit and vegetable wholesalers and retailers, who themselves are confronted with higher property prices and rentals, pass on their costs to customers. Even the price of food and drinks at hawker stalls and food courts has escalated. Case study: Eating out becomes more expensive too Let's take a look at why eating out is no longer as affordable as it once was and how this could be linked to higher property prices. As property prices soar, those who have invested their funds in property expect higher returns from the property they already have. Thus rentals are increased. In one case in Penang, a property owner was said to have asked his tenant, a food court operator, to cough up a whopping 66 per cent increase in monthly rental for the food court premises. The food court operator, who had sub-let stalls to about two dozen hawkers, felt the higher rental would reduce his profits substantially. Unwilling to pay such a high rental, the food court operator decided to shut down the food court he was operating and moved out. The hawkers — many of whom were selling low-priced meals (below RM5) to students, nearby residents and working adults on a tight budget — were relocated by the operator to another food court he was operating, much further away. Meanwhile, the landlord of the food court, now closed down, found a new tenant, believed to be an upmarket 'kopitiam' operator or a car showroom business, willing to pay the higher rental. For the local residents and students, what this means is that a food court that they had patronised for the affordable meals it offered has disappeared, leaving behind more upmarket restaurants and kopitiams in their area. These eateries charge 50-100 per cent more for the meals they serve in order for their owners to meet the steeper property loan repayments or rentals arising from higher property prices. Stagnant real wages Despite years of economic growth as indicated by positive GDP growth figure, many people do not feel better off. For one thing, in many households, real wages have not kept pace with the cost of living and productivity increases. The share of wages compared to the overall income of the country has fallen. Wages make up only 28 per cent of Malaysian GDP (based on the income method) while business profits account for a whopping 67 per cent. And 78 per cent of EPF contributors earn less than RM3000 per month. This suggests that many workers are being underpaid relative to productivity increases while firms and banks post large profits. This disconnect is being aided by the existing policy of using (exploiting?) migrant workers to depress local wages while workers' and trade union rights are suppressed. This unhappy situation is masked by unrealistic official household poverty line income levels of RM830 in the peninsula, RM1090 in Sabah and RM920 in Sarawak. These figures are unrealistically low and seriously understate the real poverty rates. The real poverty line threshold for a household should be closer to RM2000 while even the BR1M handouts recognise that households earning below RM4,000 per month need assistance. As for the official minimum wage of RM900 (RM800 for Sabah and Sarawak), that is hardly enough for a household of four or five people to meet food, rental, transport, education, and health care expenses. Why food expenditure alone would swallow a huge chunk of that RM900! GST will make things worse The neoliberal system of privatisation that favours Big Business — reducing corporate tax rates for the wealthy, cutting subsidies, and privatisation of essential services — has resulted in higher tariffs that have weighed down on the people. Moreover, speculation in housing and poor public transport have forced many Malaysians to take up burdensome housing and car loans. The removal of subsidies for higher education and the corporatisation of state-run universities have led to higher university fees, forcing many students to take up study loans. Taken together, these loans have driven up household debt. Loan instalments and debt servicing have whittled away the disposal income of many households. Meanwhile, doctors' fees, pharmaceutical charges and even health supplements have soared. And now, the Ministry of Health has approved higher consultation fees for doctors — which adds to the people misery. These higher medical charges have further shrunk the disposable income of many Malaysians, making it difficult for them to cope with the higher prices of fruit and vegetables. As the government introduces a regressive taxation system, (GST), available disposable income in many households will shrink even further, adding to the burden of the lower-income group. Conclusion It is obvious that rising food prices are a major issue among the folks in Kajang and elsewhere in Malaysia. Unfortunately, the BN government does not appear to have zeroed in on the real factors behind these significant price increases. Without accurately identifying the root causes of the price increases, how is it going to lighten the people's burden, other than by the occasional BR1M payments, which are like band-aids too small to plaster over festering gashes? Meanwhile, Malaysians are being hit by a triple whammy: as household debts soar following the sharp increase in property prices; as disposable income shrinks following the removal of subsidies and the suppression of real wage (and with GST looming), the rising food prices come at the worst possible time. In such a situation, news that GDP is rising and FDI is doing fine means very little to the person on the street, struggling to put food on the table. For this, the BN federal government's misplaced economic policies and priorities (including property-centric development and cash crop cultivation) and its inability to remove crony cartels and wipe out corruption must take the blame. The various state governments' failure to protect farmland and prioritise food security is also disappointing and worrying. — aliran.com * Anil Netto, the honorary treasurer of Aliran, is constantly amazed at how Aliran miraculously keeps afloat financially. ** This is the personal opinion of the writer or publication and does not necessarily represent the views of The Malay Mail Online.  |
| MH370: a wake-up call for our political dreamers — Lim Sue Goan Posted: 22 Mar 2014 05:48 PM PDT
The abuse of fake passports by two Iranians was disclosed by the Interpol. While our military radar detected some unidentified aircraft over our air space in the wee hours of that Saturday morning, it was the Untied States that helped corroborate that it was indeed MH370. Part of the key components from the flight simulator in Captain Zaharie's house would have to be sent to the States for analysis. In the latest development, from the commercial satellite images provided by the US, Australia said it had spotted some suspicious floating objects in southern Indian Ocean. To be honest, we alone have not done much in this whole thing although the chaotic and deliberately deferred dissemination of vital information has completely exposed our deficiency, and this definitely does not augur well for our aspiration to achieve the status of developed nation in a few years' time. It is no secret that we lack the ability to reflect on our own shortcomings. The only thing we are good at doing is to outright strike out any external criticisms. For instance former prime minister Dr Mahathir has slammed the outriders, in particular foreign media, for picking on our misdeed in our search operations. It has been generally agreed that the first thing we must do after learning that a civilian airliner has gone missing is to locate it before reviewing what has gone wrong with our operations. Some say we should put the nation above all else and have called for all Malaysians to stay united to see through the current crisis. However, without having the ability to reflect and improve, we will make the same mistakes again in looking for the doomed flight. Why is it not possible to address the deficiencies in our management the same time we search for the flight? Passengers were allowed to board the flight on stolen passports because of incompetency in our passenger inspection procedures. We lacked the necessary technicians to analyze data because of our incomprehensive education system. The fragmented and messy pieces of information protruded our outdated management style, and all these could have spawned from our rigid system and mentality. Besides lofty nationalism, we also have other factors pouring in, such as politics and ethnic sentiments. When we won the Thomas Cup in 1992, the "Malaysia Boleh" slogan started to be chanted loudly all the time, and indeed it seems that nothing is impossible with Malaysian politicians. It is not a bad thing to inspire the nation, but we simply lack the competency and management to follow. 1998, Mahathir implemented capital control mechanism to fend off currency speculation, once again allowing the country to shun the necessary reforms while entrenching the "Malaysia Boleh" self confidence as if we had made our country a role model for the developing world as the government people claimed. We were indeed fortunate because we had oil wealth to allow us to practise the Malaysian-style management to fend off foreign competition. But the relatively comfortable life numbed our nerves s management began to get lax while our competitiveness slipped. According to the Trends in International Mathematics and Science Study (TIMSS), Malaysia saw the largest drop in science and maths performance among 59 countries in 2011. Even with such conspicuous slide in various sectors, our leaders seemed to care more about their positions and status. Probably we would continue to immerse ourselves in our perceived achievements if not for this disastrous incident. Students' performance in government exams has improved over the years and an at least 5 per cent GDP growth is within reach year after year. But the crisis has rudely awakened us to the fact that there are many, many areas we need to improve. We should learn from countries like Singapore and Australia. Singapore's defence minister Dr Ng Eng Hen has said the MH370 incident has spurred the Singapore government to look into what it can learn from this crisis. In the meantime, the Australian prime minister Tony Abbott made a prompt report to the parliament after his country spotted objects that could be from MH370, while AMSA instantly hosted a media conference in a show of true transparency in handling such an international disaster. If this thing were to happen in Japan, the government should have apologized to the international community, whereas we lack the empathy and would employ such a crude tactic in handling the intrusion of Chinese passengers' families at the press conference. To transform the country's economy and to make Malaysia a high-income country, we need to lure large numbers of foreign investors and tourists. The question is, can we ensure them their safety? Do we comply with the universal value of treasuring life? Still very, very far from getting to the bottom of this mystery, it is imperative that we handle things prudently and make amends for what we have deviated. — mysinchewc.com * This is the personal opinion of the writer or publication and does not necessarily represent the views of The Malay Mail Online. |
| Decrepit homes and crumbling shops: this Portugal tour starts here Posted: 22 Mar 2014 05:40 PM PDT
Three out-of-work architects have concocted the tours to show visitors the impact of Portugal's debilitating economic crisis on the city that was named a World Heritage Site by UNESCO in 1996. "Porto is not just a postcard or some streets where tourists do their shopping. My city is also all this," said tour guide Margarida Castro Felga, 31, gesturing at the dilapidated facades in the city's Fontainhas district. Also on the itinerary are empty stores whose owners have long gone bankrupt and dozens of houses with boarded windows and doors, even at the upper end of the Porto's main shopping thoroughfare Santa Catarina street. In short, what they are offering is a walking tour of "the alleys, the abandoned buildings, the square, the mean streets, the old markets... the stories behind them all, and great discussions on very partial points of view". Disbelieving local youngsters watch the group led by Castro Felga pass by and stop outside the crumbling buildings. "It's sad to let such a beautiful city get run down," said Dean Watson, who had signed up for the tour with his wife Louise. For the American-English couple in their fifties, the tour brings to life the economic malaise plaguing the eurozone nation, which only managed to shake off 2.5 years of recession in the second quarter of 2013. "This kind of visit helps us understand what's happening in Europe today," said Louise who has lived in Germany -- the European Union's biggest economy -- with her husband for the last 30 years. "People in Germany prefer not to think too much about it," she said. Faced with looming bankruptcy after decades of ballooning wages and state spending led to a massive build up of debt, Portugal was forced to seek an international bailout worth 78 billion euros in May 2011. In exchange however, it was forced to undertake sweeping job, pay and pension cuts which deepened a recession and spawned poverty and unemployment that stood at 15.3 percent during the last three months of 2013. "The city has been losing people for more than 10 years but austerity policies have made things worse," said Castro Felga, who added that she has stopped counting the number of friends who have left to work overseas. Other morose titbits of life in Portugal dispensed during the visit: not all workers are entitled to unemployment benefits and minimum wage is only €500 per month (RM2,281) — as compared to a heftier €750 in Spain, which has also just emerged from a drawn-out recession, and some €1,300 in France, both fellow eurozone nations. Official data show that some 18.7 per cent of apartments in the city were empty in 2011, while in capital Lisbon, non-occupancy rate is at 15.5 per cent. But the guides of The Worst Tours reject any suggestion that they are flaunting Porto's misery — a criticism directed by some at tour guides who specialise in slums, such as Brazil's favelas. For Helena Goncalves from the Porto tourism board, such tours only serve to hurt the city's reputation at a time when it badly needs tourist dollars, and when the city is actually gaining popularity. "The city is finally figuring on the international tourism map" thanks to the arrival of low-cost airlines, she said, adding that it is looking to the sector to ease its economic woes. Overnight stays by foreigners in Porto, which gave its name to one of Portugal's internationally famous exports, port wine, surged 15.2 per cent in 2013. — AFP |
| Rodgers calls record-equalling Suarez ‘remarkable’ Posted: 22 Mar 2014 05:38 PM PDT
A hat-trick in a 6-3 win at struggling Cardiff City lifted the striker with a devilish reputation to 28 league goals for the campaign, drawing level with the player Liverpool fans called 'God'. "He's a remarkable player. His determination and his desire is at such a high level. He gets his rewards," Rodgers told reporters after his team consolidated second spot in the table. "He's a world-class player who is enjoying his football and long may it continue." Suarez's scoring feat is all the more impressive after he missed the first five league games of the season while serving the remainder of a ban for biting Chelsea's Branislav Ivanovic. In a similar fashion to Fowler, who bagged his haul in the 1995-96 season playing alongside strike partner Stan Collymore, Suarez has his own trusty sidekick in Daniel Sturridge who scored yesterday to take his own league tally to 19 for the campaign. It was Sturridge who set the Uruguayan up with a superb backheel for his second goal while Suarez repaid the favour, crossing for the England forward to sidefoot home with 15 minutes remaining. "Luis takes it down and Daniel has run 70 metres to get into the box," Rodgers said of Liverpool's fifth goal. "It just shows you the desire of the team. His backheel to create Luis's goal was sensational. That's what we've got in the team - footballers and technicians that can open up the game for us." Highest tally Liverpool took their scoring tally for the season to 82 league goals, comfortably surpassing their previous best of 77 in 2008-09. Defender Martin Skrtel struck twice at Cardiff, a pleasing sight for Rodgers who is keen to see the goals spread throughout the side. "Every team needs goals from everywhere on the pitch," he said. "I think that was one of the things I said at the beginning of the season. "The defenders have to chip in. That's the sixth goal he's scored this season. I said to him before the game that I fancied him to get some goals today," Rodgers added. "He's great at attacking the ball. He doesn't go to sleep for the first goal. He finishes like a striker. He was exceptional today. He's been a real stalwart for us this season." Liverpool, who host Sunderland on Wednesday, are four points behind leaders Chelsea but have a game in hand. The pair meet at Anfield next month. — Reuters |
| Ruling to strike down Michigan gay marriage ban put on hold Posted: 22 Mar 2014 05:37 PM PDT
The decision by the US Court of Appeals for the Sixth Circuit came one day after the lower court's ruling, which briefly made Michigan the 18th state in the nation to allow same-sex marriage. With a temporary stay granted, same-sex couples married yesterday could find themselves in legal limbo. The federal appeals court issued a temporary stay in the case until Wednesday, and directed attorneys for the same-sex couple that sued in the case to respond to the state attorney general's request to place the lower court's ruling on hold pending an appeal. "To allow a more reasoned consideration of the motion to stay, it is ordered that the district court's judgment is temporarily stayed until Wednesday," the ruling said. The Detroit News reported that in total four counties issued 323 marriage licenses yesterday before most clerks closed for the day at 1pm local time. At least 50 people had lined up in the Oakland County clerk's office in Pontiac, on the outskirts of the Detroit metropolitan area, when Clerk Lisa Brown arrived to open it at 8am local time carrying a heart-shaped balloon. Brown's staff was among workers in several counties who handed out paperwork to couples undeterred by the Michigan attorney general's immediate appeal of the judge's decision. Frank Colasonti, 61, and James Barclay Ryder, 48, became the first gay couple to marry in the county. They wore dark suits, with "Same Love, Same Rights" lapel pins. "We're going to celebrate with a nice quiet lunch and then go pick out our wedding rings," Colasonti said following the ceremony, which took place 26 years after they met at a church. Moments later, a lesbian couple emerged from the ceremony room, filling the corridor with elated shouts. As more couples arrived, Brown moved the proceedings to an auditorium for a mass wedding ceremony of a dozen couples or more. Clerics who support gay and lesbian rights also arrived and found quiet corners in the hallways to conduct private ceremonies for couples clutching their newly issued licenses. Clerks in at least three other counties ― Washtenaw, Ingham and Muskegon ― opened outside normal business hours on Saturday to issue marriage licenses. Lesbian couple challenged ban Michigan's ban on same-sex marriages became law in 2004 as a state constitutional amendment. It was challenged by a lesbian couple from the Detroit suburb of Hazel Park after the law prevented them from jointly adopting each other's children. On Friday, US District Judge Bernard Friedman said the law breached equal protection rights guaranteed in the US Constitution. Bill Schuette, the state's attorney general, asked the US Court of Appeals for the Sixth Circuit for an emergency order to stay the decision. The appeals court initially said yesterday afternoon the plaintiffs' lawyers had until midday Tuesday to file a response, before later issuing the temporary stay. Brown, the Oakland County clerk, said the appeal was "a waste of taxpayer dollars." "I'm no longer forced to discriminate in my office," she said. "Couples who have been waiting years to receive equal protection now have it." Following the temporary hold in the case from the US appeals court, gay rights group Equality Michigan in a blog post urged members to "this pause in marriage equality" to engage in activism, including signing a petition asking the Michigan governor and attorney general to end the state's appeal. Michigan same-sex couples find themselves in a similar situation to counterparts in at least four other states where lower courts have ruled to extend marriage rights to them. In December, a federal district judge in Utah overturned that state's ban on same-sex weddings and Utah's attorney general appealed. Some 1,300 gay couples were married in Utah in the few weeks before the US Supreme Court granted a stay while the appeal is considered, leaving the newlyweds uncertain about whether they have the rights generally afforded by marriage. April DeBoer and Jayne Rowse, the couple who successfully challenged the Michigan ban, said on Friday they would not marry until the legal uncertainty in their state was resolved. Seventeen states plus the District of Columbia now allow same-sex nuptials, a number that would be substantially increased if a series of recent federal court decisions in Utah, Texas, Oklahoma and Virginia are upheld. Supporters of the ban in Michigan, Utah and elsewhere have cited tradition, religious texts and the welfare of children to defend their belief that only opposite-sex marriage should be legal, arguments that several courts have ruled not sufficient. ― Reuters |
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