Purchasing Index Drops to 39.9

The manufacturing purchasing Index dropped from 51.3 to 39.9 in Jun 2031.

CHINA INVESTMENT IN MALAYSIA

  The China investment is huge. The investments come with special terms to the advantage of China. I wonder why Malaysia willingly chose China. Is there hidden terms to the benefits of selected groups.

   The quoted figures of China investments are:

1. Forest City  RM105b

2. Melaka Gateway RM30b

3. Bandar Malaysia  RM12b.

4. EDRA Power    RM9. 8b

5. Kuantan Port 5b

6. MCKIP         5b

7. Bandar Q1    1. 1b

8. Bukit Besi    2b

9. Kedah Oil 86b

10. ECRL   55b

11. Perlis Inland Port1.7b

Total 3.2.6 b

MALAYSIAN POSITION IS SLIDING

 Based on the IMF GDP data for 2020, Malaysia’s economy is now ranked 6th in ASEAN. A notable achievement by the Mahiaddin administration. Ten years ago, Malaysia was 3rd largest economy in ASEAN. Philippines and Singapore overtook Malaysia in 2015 when Najib Razak was the Prime Mininster and Finance Minister focussed on wealth creation. Now, Malaysia's economy is smaller than that of Vietnam. 

2020 IMF GDP data:

1.Indonesia  $1,059.54b

2.Thailand       $510.89b

3.Philippines   $362.24b

4.Vietnam       $340.82b

5.Singapore    $339,98b

6.Malaysia      $338.28b

7.Myanmar       $81.26b

8.Cambodia      $25.95b

9.Lao                 $19.08b

10.  Brunei            $12.02b 

The economy ranking continues to fall despite of Malaysia having so many ministers overlooking and promoting economy, development and productivity; namely, (1) Senior Minister for Finance and Economy, also the Minister of International Trade and Industry, (2) Minister of Finance, (3) Minister of Domestic Trade and Consumer Affairs, (4) Minister of Agriculture and Food Industries, (5) Minister of Plantation Industries and Commodities, (6) Minister of Energy and Natural Resources, (7) Minister of Entrepreneurship Development and Cooperative, (8) Minister of Rural Development and (9) Minister in the Prime Minister Office (Economic Affairs). 

Creating job positions and rent-seekers are the Malaysian government’s priorities, not productivity. Democracy with Malaysian characteristics is doomed. 

Source: 

https://www.agribank.com.vn/en/ve-agribank/tin-tuc/dtl?current=true&urile=wcm:path:/agbanken/ve-agribank/news/market-news/imf-vietnam-surpasses-singapore-and-malaysia-to-become-the-4th-largest-economy-in-southeast-asia 

https://www.statista.com/statistics/796245/gdp-of-the-asean-countries/

ECRL TENDER APR 2018

Bulatan Dato Onn K Lumpur

The round sbout was closed for more than a year. It was suppsed to be completed in Dec 2016. Now nov 2017, there is no sign that it was progressing.

Forest City Sale in KL

Another Project Under the government drive is the Forest City in Johor Baru. It is an effort to modernize Malaysia and bring in external fund. Of course it will bring up the GDP and the expansion of the Malaysia, but at what cost.

In Aug 2017, Forest City strategic partnership was signed, with 21 companies, from Malaysia, China , Singapore and Britain. It involved 2023.43 ha of land.

Who are the 21 companies?

forestcityjohor.com 23dec 2017

LRT 3 Project

The company in charge of implementing LRT, Prasarana, wanted to start the project in March 2017. The RM9bil project is expected to select the contractors for system work packages.

Hospital Putrajaya - George Kent secured 364.9mil project

George Kent - made it in the MRT project, a water meter manufacturer manage to diverse its business to rail project. What is the basis of its selection, what were the criteria are best left to the selection committee. You would not want to end in jail, would'nt you?.

Locomotive Not Running Well

In the Star paper, reported that  the locomotive purchased from China is nor running well yet.

The Electric Train System (ETS) was purchased by KTM from CSR Zhuzhou Electric. So far 2 set had arrived and undergoing testing. The test requires 10,000 km of fault free running test, where 18 critical components are tested.

ETS 201 had failed almost everyday from 11 to 18 June. The ATP (automatic train protection) has been failing when the train enter the Butterworth branch.

Star 19 Jul 2015

  

Locomotive Deal RM48 millions

The sun on Aug 5 2010, had put on its front page, the story of 2billions cost to buy the locomotive. The PAC, public account committee wants MACC to investigate the deal with the Chinese company.

The matter was brought to the parliament by Dzulkefly in March 2010 about 5 months ago, but nobody from the government side was concerned.

1. The original price was RM13.725 per head for 8 units in 2008

2. Due to NKRA the tender was cancelled as bigger capacity was required.

3. The new purchase price was rm 48 millions

4. The former Transport Minister said that the new price is because of the different specification, but Dzulkifly mentioned that the only different was the CCTV and Video panel.

The contract exclude the maintenance charges which can be exorbitant.

Malaysia ended up paying RM 500 millions extra.

Earlier Malaysia was reported to had pay RM500 million the commission to a company of a close ally of former The Minister of Defense (Najib Razak)

Below is the report from the star on the following day.

-------------------------------
Friday August 6, 2010

MACC probes purchase of Electric Multiple Units

By LOURDES CHARLES
lourdes@thestar.com.my

KUALA LUMPUR: The Malaysian Anti-Corruption Commission (MACC) has started investigations into the purchase of 38 electric trains, allegedly overpriced by half a billion ringgit, from a company in China.

The investigations began several days ago after the Public Accounts Committee (PAC) handed a report to the MACC over the purchase of the six-car Electric Multiple Units (EMUs) by Keretapi Tanah Melayu Bhd for more than RM1.6bil.

The price had escalated to RM48mil per six-car train from the original cost of RM13.7mil per three-car train.

A tender was negotiated last November following the Government’s decision to improve public transportation under the National Key Results Areas initiative for urban transportation.

MACC director of investigations Mustapa Ali said his officers had started making inquiries into the case but declined to elaborate. Sources close to the MACC said the team started the investigation last week and had obtained several documents related to the purchase. They said several witnesses including top executives, ministry officials, those involved in the negotiations as well as the supplier would be questioned. Transport Minister Datuk Seri Kong Cho Ha, who took over the ministry two months ago, said he welcomed investigations into any project under the ministry.

“I hope the investigation will be done transparently so that the public will have answers to all questions raised,” he said.

Kong welcomed the MACC’s decision to investigate all projects implemented by the ministry. and not just selected projects.

“The ministry will cooperate with all parties in investigations into projects under the ministry,” he said.

PAC chairman Datuk Seri Azmi Khalid said the committee had met on July 27 and discussed the issue raised by PAS MP Dzulkefly Ahmad during the 10th Malaysia Plan debate in the March parliamentary sitting.

Azmi said the PAC recommended that an investigation be conducted into the purchase of the EMUs from railway manufacturer, Zhuzhou Electric Locomotive Co Ltd of China.

He stated that the formal request to MACC was made through a letter last week and a copy of the MP’s speech in Parliament was attached.

Dzulkefly had questioned the purchase of the trains using the direct negotiation method, saying an investigation should be conducted as the price was exorbitant and that there were irregularities in the pricing.

He indicated that even if the six-car train cost twice as much as the three-car set, the price should only come to, at most, RM35mil each.

Salving Perwaja

Sometime I am wondering, how much we must pay to keep these companies afloat. We still remember they day Mahathir took 2 billion from the country coffer for Perwaja.

Currently Perwaja has acculated loss of rm1.89bil. and a total debt of 2.2bil.

It started in 1982, with the big idea of transforming Malaysia of am industrilised nation. It was a JV between Terrengganu State, Hicom and The Japanese Nippon Steel Corp. Hicom and Nippon Steel exit from the company.

The Star 25 Jul 2015

Scomi Engineering SEB Gets Third Monorail Project

The Malaysian Manufacturer Scomi was awarded the third monorail project as Sao Paulo in Brazil. This is the concessionaire for line 18. The earlier project was the line 17 and the Manaus rail.

The Line 18 project is for 25 years. Four years to Build and 21 years to operate and maintain.

The SEB design is based on space optimisation as well as the operation maintenance.

Brazil is sending their staff to learn from Malaysia.

Government Abandoned Projects (Prominent)

SK Danau Perdana Taman Desa (14.5mil)

The are many government projects that are abandoned or delayed. Here are some as listed by The Star on 6 Nov 2014

1. SK Danau Perdana (14.5mil)
It was abandoned barely a year after it was opened in 2004. The students were moved to another schools.

Today, what are left are only eyesores to the nearby residents.


2. Plaza Rakyat (RM3bil)
The projects was abandoned 20 years ago with the foundation were already buit.

3. Jelatek Fire Station
The projects was 90% and was stalled as the developer was facing financial crisis,

Malaysian Two Sub to be refitted

Just about five years after the 2 submarines arrived in Malaysia, they have to be refitted.

The Star 26 Jan 2016

Quoting from the paper.... The Minister Hishamuddin was saying that ... " we cannot predict the timeline until the work is complete" however "but the work is on- going and according to schedule"

The purchase of the sub has raised a number of issues including the news that the maintenance cost is about rm50 million per year.

With the amount spent we might as well learn to build it ourselves, at least it can create jobs for Malaysian

The 31 MRT Stationes

The MRT line from Sungai Buloh to Kajang is known as Line 1. The names of the 31 stations have been finalised.

The Star 27 Nov 2014

SK Danau Perdana in Taman Desa

Sekolah Danau Perdana

MRT2 Projects and Gamuda

The total MRT2 projects is expected to cost RM23bil as per the budget 2015 and the major tender will be awarded in 2016.

It will span 56km with 45km elevated with 27 stations. Eleven km will be underground it comes with eight stations.

MMC Gamuda has been selected as the PDP (Project Delivery Partner) by Mass Rapid Transit Corp to carry out the Sungai Buluh to Putra Jaya LRT. The contract is expected to be clinched as the LRT1 project is reaching the tail ends. The JV is also expected to secure the tunneling package which is cost around RM8bil to RM9bil
  

Sturgeon Fish Farm in Jeruntut

The fish farming project new Kuala Tahan at a cost of RM120 million is put on hold. It is a join venture between Felda Investment Corporation and MMC Hassed Co Ltd of South Korea. The reason quoted was, it has flouted several regulations:

1. There was no DEIA ( detailed environment impacts assessment)

2. There was no application to import the fish.

Sturgeon is not a native of Malaysia. Its import is restricted.

Several species of the fish are harvested to make caviar.

The Star 1 Oct 2014

LRT for Klang

Prasarana, the national infrastructure company had completed the feasibility study to build LRT 3 to Kelang, the Royal Town of Selangor. The track covers 36 kms and the estimated cost is RM36bil.

The 36 km run is from Bandar Utama to the Klang town. The cost averages to about RM250mil per km, inclusive of land acquizition cost.

It is expected to get the approval from the government, and work would start as early as Q1 2015. With the Klang LRT, Bnadar Utama will be the Transportation Hub. The othe LRT will be the Kota Damansara - Sungai Buluh line.

TNB Buying without Tender

TNB is buying billion ringgit worth of power behind a closed door. The unions are concerned over the award of the power plants conducted on direct negotiation basis. The speculation that the Energy Commission is going to award the new power plant contract with the capacity of 1,400MW to a company without any tender process.

The unions concern are dual folded, the higher cost can be passed down to the consumers, and even if the it is not passed to consumers, TNB may end up paying and that will affect the staff. The earlier complains were, the cost of buying the power from the IPP is higher than what TNB charges to the consumers.

the star 28 May 2014