The Star Online: Business
The Star Online: Business |
- KLCI lower in early trade, AirAsia in focus
- Car vendors and dealers call for tax incentives
- Education blueprint is one plan that cannot afford to fail
| KLCI lower in early trade, AirAsia in focus Posted: 12 Sep 2012 06:16 PM PDT KUALA LUMPUR: The FBM KLCI was in the red in early trade on Thursday, in line with key regional markets, with AirAsia in focus. At 9.04am, the KLCI was down 0.69 of a point to 1,613.09. Turnover was 24.15 million shares valued at RM23.88mil. There were 56 gainers, 39 losers and 76 counters unchanged. AirAsia fell below RM3, down eight sen to RM2.94 with 4.78 million shares done. AirAsia-CW lost 1.5 sen to 5.0 sen. F&N was the top loser, down 20 sen to RM19.20, Pharmaniaga 14 sen to RM7.43, KLCCP nine sen to Rm5.47 and PPB Group eight sen to RM12.32. |
| Car vendors and dealers call for tax incentives Posted: 12 Sep 2012 06:08 PM PDT PETALING JAYA: With the automotive industry's cry for the energy-efficient vehicles (EEV) tax exemption period to be extended pacified, industry players are now shifting their hope on other incentives in Budget 2013 to encourage a more competitive business environment. Among Perodua managing director Datuk Aminar Rashid Salleh's recommendations for Budget 2013 were soft loans or grants or tax exemptions for local car vendors to assist them in becoming world class manufacturers. "In addition, we hope that the Government will give incentives to car vendors and dealers for training both domestically and abroad either via joint ventures or partners to upskill their workers," he told StarBiz. Aminar believed this was needed for the vendors to be globally competitive in terms of productivity, quality, delivery and cost competitiveness to survive full liberalisation of the automotive industry. To reduce foreign labour employment, he also suggested a special fund allocation or incentives to OEMs for the purpose of training school leavers to help fill the need for semi-skilled labour, especially at the vendor level. "We (further) implore the Government to have certification programmes and quality standards introduced to ensure that the workmen are properly trained and the consumers are assured of competent workmanship," Aminar said of staff at the after-sales service centres and body and paint outlets. He believed that the industry and consumers would benefit from standardised service from independent centres. On the industry's effect on the economy, Aminar also recommended the Government "considers giving sales tax exemptions for first-time car buyers of national cars to allow a greater number of Malaysians to own a vehicle as the incentive would help buffer any shortfall in the economy next year due to external factors." "We also implore the Government to initiate an end-of-life policy for aging vehicles to further enhance road safety while, at the same time, stimulate economic growth," he said, adding that the Government should ideally engage relevant stakeholders, such as consumer associations, auto manufacturers and finance companies, to ensure that the policy was well balanced. On corporate tax, a point brought up by in other sectors as well, Aminar said: "We also request that the Government consider the reduction of corporate tax to offset the increase in cost to all industries, especially with the introduction of minimum wage next year." He said the reduction in corporate tax would go a long way in helping businesses adopt the rising cost of doing business without having to raise its product or service prices. Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad said since the Government had extended the duties exemption on hybrid cars below 2,000cc until end-2013, "we are hoping that the 2,000cc and above EEVs could enjoy the same benefits." "It would be good if the Government also considers reducing duties on motor vehicles which now range between 65% and 105%," she said. Edaran Tan Chong Sdn Bhd executive director Datuk Ang Bon Beng pointed out that as the automotive industry had been reported to contribute 6% to 8% to the gross domestic product by year 2020 from the current 2.4%, Tan Chong hoped that the Government would take on gradual structural changes for the industry. "We hope to see changes to some structural issues to boost the growth of the auto industry," he said, "Nevertheless, we expect the government to adopt gradual, instead of drastic liberalization, to ensure market stability." He also noted that auto players as well as MAA have submitted various proposals to the government under the National Automotive Policy review which will be revealed soon. |
| Education blueprint is one plan that cannot afford to fail Posted: 12 Sep 2012 06:07 PM PDT THE new education blueprint is out and it seeks to address a lot of weaknesses in the "infrastructure" within the education system. What that predominantly refers to is improving the quality of teachers. Many of initiatives also look at mending the profession and getting the best bang for every ringgit spent on education. With 16% of total government expenditure funnelled towards education, which is a very high amount on a global comparison, it's a waste to see how poorly students are performing. International measurements place Malaysia at a ranking that is below average for reading, mathematics and science. The Government owned up to its mistakes in letting standards in education slide and the efforts contained in the blueprint do look tangible enough in trying to get the quality up. A change in the curriculum is slated for 2017. One of the issues at hand here is whether the action plans in the education blueprint will get the buy-in from teachers. For years, the teaching profession seemingly was the employment of last resort and students today are paying the price for that. The report states that only half of lessons are being effectively taught and to rectify that, the hiring of teachers in the future will be more selective and will come from the top 30% of graduates. Those who are poorly equipped to be teaching effectively will be sent for rigorous training. The will to improve and penalise poor teachers should not be compromised. The intent is to have those only fit to teach do their job. Although the report does set out wide-ranging strategies, the education system should not have waited for the rot to set in before springing into action. Changes should have been made on the fly when weaknesses were identified. After all, the repercussions of letting problems simmer like they have, will be translated into a poor stock of human capital, an essential ingredient for any economy's future. Implementing the education blueprint will now be closely watched and it can be difficult to pull off. Just look at the variety of plans in the past that have not met their marks (such as the original National Automotive Policy) and it's easy to cast some doubt whether the proposals under the blueprint can be executed. But there are others that have done fabulously well. Examine the banking sector before and after the Financial Sector Masterplan by Bank Negara. It took the Asian Financial Crisis to get an overall plan going and looking at the banks prior to the crisis and 10 years later, the difference is like night and day. Maybe it's easier to regulate financial institutions as there are a few dozen banks and insurance companies to oversee but it's no guarantee of success. Apart from a sound plan, an unflinching determination to correct past weaknesses is needed. That was shown when the Financial Sector Masterplan was implemented and the same should take place when re-engineering the education system in the country. There is no room to pander to political pressure. It will water down what needs to be done as the education blueprint is one plan that cannot afford to fail. Acting business features editor Jagdev Singh Sidhu saw the slide in the quality of teachers when he was a student at St John's Institution and wonders what is it like today if that trend had continued for more than two decades. |
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