Micro Credit Financing, a catalyst for SME Growth

Will the second stimulus package to be annouced by Finance Minister and deputy premier YB Dato Seri Najib Tun Razak on 10 March 2009 take into consideration the problems faced by the small and medium size enterprises?

In all fairness the peole are expecting the government to be transparent with its economic data and not run the country in a state of denial despite the world economic turmoil. Question are being raised at dinner tables on how long will this slowdown last, 18 months says one economist, 2 years says another. One analyst say the US is already facing the slowdown last 2 years and we Malaysians have the delayed effect and as such have not seen the impact yet. Hence, the upcoming second stimulus package will be looked upon by many to suatain our economy. Will it be 10b or 20b package. I anticipate a RM15B package as the government need time to continously assess the world situation and fix the remedies continously. Another stimulus package can be introduced later if necessary.

The small and medium size enterprises (SMEs)fall into many categories as SMEs can be as big as micro business to businesses up to RM10-20 million.The fact remain that many economies SMEs account for up to 60% of the GDP and thus giving focus to this area in any stimulus package will be the step in the right direction as it has direct multiplier effect to the malaysian economy.

Given that the meltdown has caused many SMEs to face challenging cash flow problems the focus should be to provide this enterprises with micro and medium size loans i.e to give them breathing space.many of this enterprises have good business models but due to irregular collection patterns they are unable sustain their business.

The govt introduced the Tekun loan scheme up to RM10,000 with 3 years payment pattern with 4% interst. Many startups and micro enterprises benefited from this but the slow processing period have not helped them.

Many people approach me for this loan aand thru my service center we submitted application as far back in November but todate we have not received any news on the status of the loan. The slow turnaround time hampers micro business growth.

Hence i would like to propose a three tier SME loans be introduced as part of the second stimulus package to be unvielde next week. firstly to address the micro entreprise in addition to tekun loan introduce a micro credit loan up to 5Ok, secondly to address SMEs in the next group financial assistance up to RM 1m and to address the bigger SMEs cashflow other loan schemes need to be envisaged.

Battle of the Bukits: A weak BN against A battered PKR

After the aftermath of the Kuala Trengganu parlimentary elections and the perak government takeover of Perak, the battle between the bn and the PKR blooms again , this time up north at Bukit gantang parlimetentary seat and Bukit selambau kedah state seat. it is commonly known that PKR had the upper hand after victory in KT but sadly the maverick behind PKR Dato seri Anwaronly concentrated on defections from bn to pkr and not vice versa. The defections strategy adopted by DSAI since the PKR resounding victory become their own downfallwhen the bota assemblyman purpotely ied in what happen in perak deflecting to PKR made a turnaround and together with three other and defected to BN. BN made a claim and took over the perak state alas the ongoing legal battle in the hands of the malaysian courts.
On the ground, the man in the street is dissatisfied with what happen in perak claiming that their democratic rights were robbed. People who i talk to are somewhat tired and not bother about politics any more.
The Bn on the other hand despite its failure in recent by elections has failed to change their 'modus operandi' radically. The latest being an UMNO division leader requesting for UMNO to contest a traditionally MIC allocated Bukit Selambau seat claiming that UMNO stands a better change to wrest the seat. For BN to strengthen itself, this must stop.
Given the status of a weak BN and a battered PKR, the voters of the bukits has to take this byelections seriously as it will reflect the mood of the rakyat. This by-elections is equally important for teh Prime Minister in waiting YB DS Najib razak who shall assume umno presidency and the premier post in March. Will he be able to turn the face of BN ?
As a 28 year old member of a BN component party there is a need for BN to be able to reach the rakyat and put up a Malaysian face appealling to all msians. BN must stop internal qualms on its candidates and work all the time to serve the people, not only during elections and by elections. The rakyat do not have appeal for the benefitsflloded to them during eklections and bye elections. IT must study the youth thinking and voting patterns.
The PKR on the other hand need to organise itself strategically and scrutinise its candidates credibility. Gone are days where the rakyat will accept a postman,a photographer as a candidate. a matured malaysian democracy is in the making. Will malaysia be able to have a strong two party system inplace to provide alternative in governing an orderly nation ? Will we see Obama like politics here? This is the agenda of change we must pursue......it may be a destination and not a journey too far but it starts at the battle of the Bukits.

MIC-IPF Merger Augurs Well for the Unity of Indian Community

The recent annoucement by MIC party President Dato Seri S. Samy Vellu inviting IPF to merge with MIC is not a new development. In the past, the same invitation was extended to the the MIC supremo.
However, the timing of the invitation is indeed the difference. After the March 8, 12th general election the BN's majority has slumped and the recent development in the Bota State assembly has further propelled the BN and its components to find ways and means to strengthen themselves. MIC launched its rebranding exercise soon after the aftermath of March 8 and has completed its first round of its exercise. The unification of the MIC-IPF will difinetely augur well for the 1.8 million indians who by large is the third biggest commmunity in Malaysia. However the community is dissected into few political parties and divided into many groups. Even the 3 Tamil newspapers readership is divided into MIC followers, Dato Subramaniam (ex deputy president, MIC) followers and others. With a large fragmentation of the community, the political strentgh and bargaining power are not fully realised. Couple with this the leadership tussle within the IPF after the demise of Tan Sri M.G. Pandithan, the Founder of IPF further breaks the fragmented community.
MIC with its 630,000 members and IPF with over 250,000 members can fully unite the indians and request for further assistance in porportion to its political strength.
However, the procedures of unification must be palatable for the IPF members who hold positions at branch, division, state and national level. As they will become members of a unified party the need for them to maintain their position as branch chairman, division chairman, state chairman etc need to be looked at a strategic level so that the unification can be smooth.
The time is indeed ripe for the Indian community to unite as pooling of resources and networking with a larger pool of professionals within the community can harness the community to greater economic and social prosperity. Given that the BN is almost in need to give it a facelift, the MIC presidents move is very timely and appropriate.
On the other hand , BN has to appeal to all Malaysians regardless of race, religion and creed and this only can be done if its component parties are credible and strong.

kugan ananthan -msians made a point

The increasing number death of indians in the lock up over the years made the community moaning. But Kugan anathans death made them really mad. But not only the indians were united but all msians were against the police treated of a suspect. The fact that he is a suspect in a luxury car heist was known to them and they will not mind the reasonable punishment for his offence if convicted.
However, the due process of law must be in order. The police now have to study the procedure relating to the treatment of suspects in lockup for all msians. The msians in general are more matured and are able to voice their grievances and dissatisfaction through public protest....a thing not thought of many years ago.
The fact that they are calling their MPs to be with them in their fight against injustice proves a point. kugan death in lock up must be the last if law and order will prevail in our country regardless of the origin of the suspect. Malaysians must prevail in justice(kugan death will not be in vain -mkini 28/01/09). lets hope kugan incident will reinforce the need for review of the IPCMC.
Msians at large want a larger say on how the democrary is practised in our country.
The government of day must change its approach in dealing with individual rights.
Remember, Only change is constant.

Grow Up Malaysia !

Hi everyone there, how are u guys doing ?. I have been very busy last one month plus setting up my community service centre and setting up my corporate training and consultancy office. My last post in my blog was on 3 October 2008. thank got everything is normalised now. Will post some of my community service centre pictures soon.

By the way, looking at the way things are moving, Malaysians have to grow up a lot as compared to our brothers across America. The have a civilized nation longer than us but i hope Malaysians dont have to wait that long to think out of the box. Americans made a historic decision in choosing a black as the leader of the world biggest economy because the believe he has all the credentials to make a good leader for the ppl of America regardless of race, religion or creed . Barrack Obama has excellent oratory skills, strong educational background and has been the peoples man as soon as he entered the Senate to serve the people of America. his exposure in kenya, Indonesia, Hawaii and USA made him an all rounded leader who was able to see things in a different perspective.

However, we Malaysian forgot that meritrocracy is what will make Malaysia and Malaysians shine not whether he is an Indian , chinese or Malay. The recent news of a Chinese been appointed to head the Selangor State Govt Arm, PKNS made news for the wrong reasons. Again, some merciless Malaysian are talking about a certain race leading organization's regardless about the capability odf the person appointed. After 50 years of independence we are still singing the same old song. If Barrack Obama, created hope for the minorities around the world ,Malaysians are still not at all pertuion and rbed by the new age phenomenan that the best man fitted should be appointed to do the job. Look at India, the previous President was a Muslim in a hindu majority and a Punjabi appointed as the Prime Minister. All this was possible because the appointments were all made in the name of merit.

In a globalised environment, many Malaysians are just cheating themselves by refusing to accept that the best person based on merit should be helming PKNS and not because of gender or race. At the end of the day we do not live in isolation but in a borderless world. Our refusal to accept reality, will only delay our catch up process as the the world order is catching up fast. Many MPs who are non - Malays have vioce their concern on why Khazanah link companies are not lead by Non-Malays. Until today the government has closed one eye on this issue. Are we saying that there isn't any capable lads out there or are we cheating ourselves by putting the not so best candidates to run our govt link companies which is all the taxpayers money in the name of race.

Malaysia and Malaysians, time has come, accept reality, grow up and accept the change.

Promises To Keep, Temple demolition in Ampang

After the last general election, the Selangor State run Pakatan Rakyat promise not to demolish any temples or places of worship. But the recent demolition of the Sri Maha kaliamman temple in Ampang Jaya has caused furore among the Indians.
The news report has it that the temple was built in a forest reserve. So does it obstruct anything that the council must take action immediately without consulting the state government. The Selangor State Executive Councilor in charge of temple affairs, Dr. Xavier Jayakumar decribed the incident as "this is a small issue compared with more serious problems affecting the Indian community. Why dont we look at the bigger picture". this drew the wrath of the Indian community and religious group leader.
It is time Dr Jayakumar and his Pakatan team members realise that election manifesto's and promises are meant to keep ie "promises to keep" not just to win elections.
The Indians voted for Pakatan bcos they were upset with the BN Govt over the demolition of the Hindu temple in Padang Jawa just days before deepavalli- showing disrespect to the Hindu Religion.
Now the Pakatan government in Selangor has started the Temple demolition. The Indian community will no longer buy stories like "According to our guidelines, local authorities must seek permission from the executive council before demoloshing any place of worship"
Dr Xavier is the representative of the indian community, although not a Hindu he should be responsible enough to protect all places of worship regardless of religion.

SEPT 16 WHO IS THE BENEFICIARY ?

Dato Seri Anwar Ibrahim's (DSAI) past few months consistent claim of forming a new government is something that has been making headlines in the press daily. Is this just a claim or a reality as he had claimed that enough of Barisan MPs are waiting to cross over come Sept 16. Is it a tactical game by PKR ? Are there enough numbers to form a new government? This are some of the thoughts that are on the minds of the ppl.

History has it that Sept 16 is the day when Malaysia was formed i.e Sabah and Sarawak become part of Malaysia and hence Malaysia Day. It is a day to celebrate for their union made Malaysia, a model of multi-ethnic society once often praised by others.

The 12th general election on 8 march was the turning point for the rakyat who made their choice. They gave the PKR more seats than they previously had but BN had the simple majority to rule the nation , PR to govern the five states it won. So the decision was voted by the majority of the rakyat. So is the rakyat just waiting for someone to topple the government or are they concerned on the bread and butter issues affecting them ? Is there so much politicking going on that we all forget the achievement of a developed nation i.e Vision 2020 as its goal.


Who is going to benefit of this Sept 16 attempt, only one individual or the whole nation ? Are we not able to realise the stark reality of what is happening in our neighbouring country ?

I believe the government of the day have so much thing to do to turn Malaysia into a developed country and make the lifestyle of Malaysians better. Some of the our priorities are;
resusticate the flagging economy
Review spiralling consumer goods prices and increasing inflation
address unemployment among youths and graduates
eradication of poverty
illegal immigration issues highlighted by Sabahans
look at the needs of Sabah and Sarawak
Immediate review of the Public transportation system

Majority of Malaysians are not concerned on the politics of the country but on how the can counter the increasing consumer prices and pertol price hike and make enough to feed their family.The PR government if it is really great and able to convince the rakyat should go forward and carry on with its services to the rakyat and wait for its turn and perform well on the by elections and the 13th general election where they sld show their muscle after contributing their services to the rakyat , rather than going on with this sabotage. The investors are jittery and look at how the stock market is reacting to the perception of uncertainty created by DSAI.

Hi ppl, Lets move on and let the govt of the day concentrate on economic and social development which is vital for ppl of all walks of life. Let politicking take a back seat as we have bigger priorities at hand.

Radical Reform Required For BN To Stay Ahead

The Recent Permatang Pauh by-election further reinforced the need for the BN component parties to radically reform themselves. The rakyat is not against the BN but the approach it has taken in addressing the bread and buttter issues have them concerned on the future of this country and thus they look for alternatives.
The recent incident where a school teacher in Telok Panglima Garang who uttered uncalled remarks on a indian student have angered the indian community whilst calling the chinese "pendatang" at the permatang pauh byelection have turn the chinese furious. This are just examples of the issues that are begin to tear
BN has to look beyond race and religion if they were to lead the pack of the component parties. Time has come where the rakyat is questioning for their individual and community rights and as a branch chairman of a component party i do come across this questions myself. It is time to show the ppl that BN can deliver and just not playing rheotoric. Furthermore, the approach taken to address community issues and win over the rakyat has to reformed radically.
BN has been in existence for 50 years. It has a legacy of proven track record and system but now ppl are not looking at history alone. Character, delivery system and approach in handling the bread and butter issues are their main concern.
Tan Sri Koh, Former Penang CM echoed the statement that BN has to fast track its reform. But it is still unclear whether majority of Component party leaders agree with this or are they still thinking of the good old days.
BN have to be aggresive in the constituenties that its lost in the 12th general election. Appoint credible candidates who can go to the ground and do social and community service. With service delivery by credible apointees it will be difficult to gain the lost ground. BN has the capacity but will power ?

Budget 2009, Will it reduce the burden of the Rakyat ?

Prime Minister Dato Seri Abdullah Ahmad Badawi tabled the 2009 Budget much earlier this year as compared to previous years due to the upcoming Ramadhan (fasting) month and Hari Raya festival in September and October 2009 respectively.

The petrol price hike a couple of months ago have resulted in inflationary pressure on consumer goods resulting in increase in price of goods and services thus reducing the disposal income of the man in the street. Consumers from all walks of life faced difficulties as consumer spending have been curtailed putting less money in the pocket.

As such it is important to look at whether the Budget 2009 did address the bread and butter issues such as increasing the disposal income (putting more money in the pocket of people to raise consumer spending) in time of economic uncertainties. To further spiral the slowdown in economy, boosting consumer spending will create a multiplier effect to enhance the economy. A responsible govt will look at this approach at addressing the economic concerns.

Lets now look at the major components of the Budget 2009 proposals:

The increase in the tax rebate for the income bracket RM35ooo and below from RM350 to RM450 will result in some 100,000 taxpayers from paying tax. This will result in increase in disposal income which can boost consumer spending and can mitigate the increase in petrol prices.

Announcement of a one month bonus or a minimum of RM1000 to be paid in two instalments in September and December 2009. This will definitely assist those celebrating Hariraya festivals as they are able to use thsi instalments for purchase of hariraya items an the December instalments will assist parents of school going children to use the money to buy school items. this is expected largely to increase in the consumer spending in the months of september, October and december 2009. This in turn will have a multiplier effect on the economy.

Increase in pension amount from a minimum pension of Rm72o a month effective Jan 1, 2009. This will definitely put more in the hands of the pensioners who can cushion the effect of petrol price hike and increase in prices of goods.

Reduction of road tax for owners of diesel engines vehicles. This will increase the disposal income.

Increase in the monthly allowance of the physically challenged on welfare assistance from RM400 monthly household income to RM 720 for Peninsula Malaysia, RM960 for Sabah and RM830 for Sarawak.

One way to manage therisk of increased petrol price is the introduction of an efficient public transporation system. The Government in the Budget 2009 has made significant strides to address this issue by increasing the capacity of LRT & KTM kommuter System. However the full implementation of this will only be felt in 2014. The inefficient public transportation system until then will not solve the day to day woes of the public. It is recommended that the government relook at the implementation timeline as the under capacity issues will need to be addressed almost immediately.

Allocation of RM3billion to sabah and RM 3.3 billion to Sarawak augurs well for the foundation of an equitable sharing of wealth and the unification of the concept of Bangsa Malaysia as both the east Malaysia states has been repeatedly asking the Federal Govt for assitance with the compalints that t hey have not been given additinal allocation to alleviate poverty and lack of infrastructure. They also claim that they have been neglected over the years. This is a step in the right direction of the BN led government.

One key point that that came out of Budget 2009 sppech is the political stability of the country viz a viz the performance of the economy and the Stock market. Malaysia was once considered a safe "haven " by the investing community. However, this has taken a drastic change since the so many demostration that has taken place. The BN led govt need to seriously address this concern and radically reform its implementation of its projects and programmes proposed for 2009. The rakyat expexcts to see tangible benefits from the proposal in Budget 2009 . This will then lead amd increase the confidence in the present govt. People expects to see a governments that delivers.

Past election results (March 8 and permatang pauh) do not speak well on the peoples apprehension of the actions taken by the BN government . The expectation of the ppl in the street is the govenment representative who 'walk the talk" i.e to deliver their promise.

JOB VACANCY AT ACA

FROM
Supt.Karuna

INDIAN GRADUATES WITH DEGREE,Diploma,STPM,SPM,who wants to serve in ACA
please apply at spa.gov.my or go to bpr.gov.my or send resume to a2@bpr.gov.my.