The Malaysian Insider

NOV 28 — The government has recently announced that there will be tabling of first reading of the draft GST at the end of the December 2009 parliament session.

During the debate on the motion to support the budget for 2010 I mentioned briefly the need for the government to start the ball rolling on the implementation of GST to diversify the revenue base of the country and also to put in place a tax structure to see the country into the future.

Why is GST attractive and implemented in most countries like Singapore, Japan, Canada, Australia and New Zealand?

JULY 15 — There seems to be a misconception regarding my proposal to nationalise PLUS, the company which operates our highways. I had proposed that Khazanah acquire the remaining stake it does not already own, but I did not propose that tolls be abolished. I believe that tolls should be maintained.

The reason I am proposing that Khazanah acquire the remaining stake in PLUS is to stop the government from paying the toll operator compensation which has been increasing annually, up to RM730 million in 2008.

JULY 7 — Most housing developments in Malaysia are undertaken by private developers who use the concept of sell then build (STB). Even though most of the projects are ultimately completed, there are a number of abandoned projects — leaving the homebuyers in the lurch.

Most developers go scot-free while the homebuyers are burdened with instalment payment for incomplete homes. Imagine the burden of having to pay rental for a place to stay and then pay instalments for a home that you cannot occupy. The problem with the current STB is that developers start collecting payments as soon as buyers sign on the dotted line.

Problems associated with STB are constantly reported in the media and in Selangor alone it is estimated that there is nearly 45,000 units abandoned and it is estimated that it would required RM3 billion to RM5 billion just to revive the projects.  

MAY 27 — It was recently reported that taxi drivers may soon get their long awaited fare increase. It was not too long ago, in 2008, that the Commercial Vehicle Licensing Board (CVLB) issued a stern warning to taxi drivers that they risked losing their licences if they increased fares without approval. The proposed fare increase is expected to be a raise in the starting base meter fare from RM2 to RM4 and a rate review on the fare charged per km travelled.

The reason for the hike is due to increases in operation and maintenance cost of vehicles, and also that most taxi drivers are not earning enough. If we remember, in November 2008 there was even a proposal by the then Entrepreneur and Cooperative Development Minister to allow taxi drivers to sell packet drinks and phonecards to passengers as a side business to increase their earnings.

MAY 4 – Recently, the Government announced a few major decisions that have been positive and I hope that there are more to come.

On the economic front, the decision to scrap the 30 per cent bumiputra equity requirement for the 27 services subs-sectors and also to allow a higher foreign equity participation for insurers and investment banks would augur well to attract more investment.

Even though some may argue that these are only ‘baby steps’, they are steps in the right direction to raise Malaysia competitiveness in the global business front.