The Star Online: Business
The Star Online: Business |
- Malaysia monitors status of entry point projects on weekly basis
- PNB votes against Asia File directors
- Higher retirement age will benefit the economy
| Malaysia monitors status of entry point projects on weekly basis Posted: 28 Sep 2011 03:34 PM PDT STOCKHOLM: The way Malaysians do business has changed and they now have a new way of doing it, said International Trade and Industry Minister Datuk Seri Mustapa Mohamed when answering queries from Swedish companies during the Stockholm Roundtable Meeting. During the session, Swedish companies were interested to know about the political situation in Malaysia, the level of skills among Malaysian knowledge workers and whether Malaysia really had the ability to execute. "What is different now is in our planning. Now we have Pemandu, which monitors the status of every single entry point project on a weekly basis every Friday, in fact. "Every two to three weeks, I chair the investment committee meeting," Mustapa said. On Malaysia's level of skilled labour, he said Malaysia had universities and technical finishing schools to ensure that its knowledge workers were really qualified. He added that the Government was hoping to sign the Free Trade Agreement with the European Union by mid-2012. So far, four rounds of negotiations have taken place. During the meeting, Malacca's chief minister Datuk Seri Mohd Ali Rustam invited Swedish companies in the areas of stemcell research, oncology, and information, Communications and technology (ICT) to set up base in the state. "Malacca is very dynamic in terms of health tourism. Every year, we receive some 100,000 overseas patients for medical treatment. "We can assist the Swedish companies to make applications to the Federal Government for the research and development grants. We are very interested especially in stemcell and oncology," Rustam said. Also present during the meeting was Digistar Corp Bhd's managing director Datuk Lee Wah Chong. He is currently in talks with several Swedish ICT companies on the possibility of business cooperations. There are at present, 120 Swedish companies operating in Malaysia with 13 of them operating with MSC status. Investment by Sweden amounts to US$439.8mil as of Dec 31, 2010. The European Union's total investment is US$14.38bil. Sweden is well known for its innovations, renewable energy, machinery and equipment and ICT industries. |
| PNB votes against Asia File directors Posted: 28 Sep 2011 03:33 PM PDT GEORGE TOWN: In a surprising twist of events, Permodalan Nasional Bhd (PNB) voted in an AGM against the reappointment of three independent directors of Asia File Corp Bhd and the payment of directors' fees. PNB, which holds 15.4 million shares in Asia File representing 20%, voted against the reappointment of independent non-executive directors Nurjannah Ali, 52, Khoo Khai Hong, 83, and Ooi Ean Chin, 78. PNB did not give reasons for objecting to the reappointments, said Asia File managing director Lim Soon Huat. However, some 80% representing 61 million of the shares voted for the resolutions to reappoint the three directors and the payment of directors' fees, enabling the resolutions to be passed, Lim said. The votes were cast via a poll conducted at the AGM. Meanwhile, Lim said that beginning Oct 1, Asia File's sales and production contribution from Malaysia would drop to about 40% of total compared with 60% previously. Asia File makes paper-based filing products following the acquisition of a company in the United Kingdom. In the United Kingdom and Europe, Lim said the market had softened in the past two years by about 10%. "The weakening of the euro has also eroded our revenue and reduced the quantum of profits. "Currently, the exchange rate is around RM4.90 to £1 compared with RM7 to £1 three years ago," he said. Lim said the group had recently bought over UK-based Trissi Brissi Ltd for £4.6mil. "The paper-related product manufacturing and sale company has the capacity to produce 35,000 tonnes per annum of coloured manila and paper boards, using recycled materials," he said. |
| Higher retirement age will benefit the economy Posted: 28 Sep 2011 03:31 PM PDT QUITE a few Malaysians would have pumped their fists into the air upon hearing of the plans to increase the retirement age of private sector workers. That group would certainly be those thinking that their working life was coming close to an end and the prospect of having five or more extra years added into their careers and earning potential now would certainly be a windfall for them. The fact remains that retiring at 55 in today's world seems a waste. The mortality age for Malaysians has risen quite a bit from when the Employees Provident Fund (EPF) Act 1951 was first passed. At that time many Malaysians were not expected to live past 55. The retirement age in Indonesia and Thailand is 60 and any high-income economy, in which Malaysia aspires to be, certainly has a retirement age beyond 60. Today, with better medicine, diet and exercise, the average life of people has increased. A longer life based on a finite and short working career certainly would put a strain on the finances of many a retiree. The EPF says 73% of contributors have less than RM50,000 saved while only 17% have over RM100,000 at the point of their retirement. Add in the ever-growing costlier living costs, that amount of money will not last long and many do end up broke just a few years after retirement. Another reason why the EPF might suggest an extension of the retirement age is that Malaysia is now a greying country. Baby boomers will retire in ever increasing numbers and the money will be withdrawn from the EPF and that will be to the detriment of the current group of savers and the overall equities and securities markets where the fund is a major investor. Also, the more workers a country retains as the population ages the more the benefit to the economy. But the decision to increase the retirement age in my estimation will boost the economy in the longer term. Extending the retirement age will act as a stimulus for the economy and that will be from a group of people with the highest earning power too. Based on life cycle hypotheses, people tend to spend more during the early age of their careers and save more as retirement approaches. Now that they know retirement is postponed for five more years at least, those people who might be thinking of building a nest egg have the opportunity to spend. Spending more now will certainly be a boost to domestic consumption which is a main driver of growth. People will now look to buy a new house, upgrade their cars, do some renovations to their homes or spend on whatever else they want on now knowing that they have the flexibility without worrying about the end of their careers. Extending the retirement age will not mean people cannot retire early. Anyone can retire today if they wish to but surveys from the United States have shown that people will choose to retire later if the retirement age is extended. Should the retirement age of government employees be increased to 60, it will be illogical to have separate retirement ages for the public and private sectors. It will mean having a person at a top salary bracket serve an extra five years instead of giving that person a golden handshake, pay him 50% of his salary for the rest of his life, and replace him with another person at the salary of the retired person. There are also other benefits the Government can save on such as healthcare bills. Young people who might be worried about not moving up the ladder or getting a job should not. Should the economic transformation programme gain traction, that will mean 3.3 million new jobs over the next 10 years. Add in the fact we are technically at full employment and have more than 2.3 million legal and illegal foreign workers at least, jobs will be there as the economy grows. Company CEOs may think that extending the retirement age will mean they are stuck with the deadwood in the organisation. The fact, however, is deadwood will inevitably exist in every organisation. If CEOs can miraculously be given one chance to remove all unproductive workers, you can bet others will emerge at later years. It's best that talent management is exercised to ensure such workers are minimised at all times. Deputy news editor Jagdev Singh Sidhu thinks those who have planned for their retirement will now look to spend a bit more. |
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