GM To Repay Loans

Reading from the Associated Press that General Motors Co will start repaying its loans from the US and Canadian governments is expected. Right from the beginning of the crisis I have no doubts on GM's ability to pay its loans on time.


The initial sum of $6.7 billion to be paid quarterly i.e. $1 billion to the US government and $200 million to the Canadian government indicates the cash flow stream of GM. I do not know if the US and Canadian governments would charge penalties for early repayments because Malaysian banks do charge some money for early paid off loans. ( My car loan was paid off 3 months earlier than the July 2009 deadline - the bank charged a sum of interests although it was an Islamic Loan from a conventional bank)


Uni Asia General Insurance


Uni Asia General Insurance will soon go bankrupt! That is my prediction.

My Grandmother Died

On 10th November at 11am my grandmother on my father's side died. The news was expected considering she was 90 years old and senile. So now I have no more grandparents.

Al-Fatehah

SOCCER- Malaysia Cup 2009

My congratulations to the Negeri Sembilan soccer team on winning the Malaysia Cup final. As Negeri Sembilan is where my roots came from I am proud of the 2009 team. This cup is indeed a present to Tuanku Mukris who was recently installed as the new Negeri Sembilan ruler.



Queen of Peoples' Heart


For quite sometime I've been trying to download the song "Candle in the wind" which Elton John sang during the late Princess Diana's funeral. By chance I was able to download that particular song today. As I was listening over and over again, tears came down from my eyes ^^^^^^^^^^^^^^^^^^^^

The Opel Experience

My first few articles were mainly aimed at remembering my driving experience in Canada. But I forgot some things too. For instance when I was small my late father owned a Volkswagen. I never wrote that initially. Recently I remember I drove an Opel in 1991. It was a Kadett 1200 manufactured in 1978. Honestly I did not feel the umph because the Opel Kadett was an old model then and I think that particular car was already in the junkyard.

I wonder what was GM's strategy when the boards decided to keep the Opel unit.

If I am a rich person I would buy Opel the company BUT just like Malaysia's famous artist the late Tan Sri P Ramlee said in one of his humor movies "he wants to get married but he has only RM1" (the movie is Bujang Lapuk or the Bachelors and Spinsters)

The Opel episode shall continue...

Manual Versus Automatic Vehicles

Before I went to Canada I never had the chance to drive automatic cars. The Malaysian culture is such that manual cars are much faster compared to automatic cars. A man who drives an auto car is considered a women in Malaysia.

I wonder if there is any CORRELATION between a standard and automatic cars which involved in an accident. I once talked with a traffic police who said accidents in Malaysia involved mainly STANDARD cars. There must be a study on this matter. But the new generation of Malaysians are DEVIATING themselves towards auto cars. My younger sister recently bought an auto Proton and so were my uncles and cousins. It costs at least a thousand more for an auto car compared to a standard in Malaysia.

NATIONAL AUTOMOTIVE POLICY - REVIEW

The Najib administration announced a review on the NAP recently. As expected the car tariffs are maintained but the decision to allow 100% ownership on foreign makes to open manufacturing facilities in Malaysia is unexpected. Maybe it would be better if the government impose a 65% local contents on these foreign car companies. Of course the engine and chassis must come CBU from the originating country. This manufacturing license is limited to luxury cars and motorbikes, hybrid and electric vehicles, pick ups trucks and commercial vehicles.

I have no comment on the ban of used automotive parts but the termination of AP (Approved Permit) to import vehicles by 2020 is long overdue.

My biggest worry is the year 2017 when my Perodua Kancil will be 15 years old. The new rule requires vehicles more than 15 years old be scraped or be subject to 100% inspection before a new road tax is given. This rule was imposed previously for commercial vehicles but accidents are still rampant. The government must provide better amenities for car owners so that this rule of scrapping 15 year old vehicles will not become a headache not only to the authorities but also to the car owners.

One thing which this review overlooked is the accident claims by car owners from the insurance companies. Contrary to Canada, a vehicle in Malaysia must be insured to get it on the road. As for my younger brother's car, his car accident claim with Uni Asia General Insurance has been 6 weeks now.The last time he talked to the workshop, the adjuster just came by and looked. My goodness the adjuster was so slow. In 1990 it took me a month to get my late father's car repaired by the workshop after my car crash December 2, 1990. Bear in mind in 1990 internet is known only in the land of uncle Sam. THERE must be a law for insurance companies to speed up accident claims.

Whether this revised NAP will be a boost to the Malaysian auto industry is too early to predict. But with Ford posing a profit despite GMACs appetite for more American tax payers money my instinct says we are on the RIGHT direction.

My Health

On October 20, I went to the Tuanku Ampuan Najihah Hospital in Kuala Pilah for my regular check up. After much deliberation the doctor decided to discharge me from the specialist clinic. Instead after this I would just go to the Kuala Pilah out patient clinic. I hate it to go to the clinic everyday to get my blood pressure readings!

BUDGET 2010 - Review

AMOUNT ALLOCATION
A total sum of RM191.5 Billion is allocated which is 11.2% lower than the revised allocation for 2009 budget of RM215.7 Billion. Operating expenditure is RM138.3 Billion (72.2%) and Development expenditure of RM53.2 Billion (27.8%)


DEFICIT
The government estimates a lower deficit for 2009 at 7.4% .In 2010 the deficit is expected to be at 5.6% - But I still think the deficit for 2009 is closed to 8%


GDP
For 2009 GDP is envisaged at -3%. This is also in line with my estimate considering a constant -3.9% growth for 3rd quarter and 0.1% for quarter 4 2009. The government foresee a 2% to 3% growth in 2010.


CPI
The government foresee a 1.5% to 2.5% inflation. My forecast is 3%.


UNEMPLOYMENT

PM Najib expects unemployment to be less than 4%. My instinct says 4.5%


PER CAPITA INCOME & PURCHASING POWER PARITY
Per capita income of RM24,661 and purchasing power parity of USD 13,177


INCOME TAX

For Malaysians earning more than RM100,000 annually the taxable rate is reduced by 1% to 26%. Personal allowances increase from RM8,000 to RM9,000. Users of high speed broadband can claim up to RM500 on their receipts while those with Green Building Index status can claim a return for expenditure on green building.For Malaysians who buy annuity an extra RM1,000 can be claimed for relief under EPF and insurance.


CREDIT CARD
CHARGES
Annual fee of RM50 will be imposed on each credit and charge cards. For any supplementary card a fee of RM25 is levied. Too early to conclude if Malaysians will practice prudence spending.
I do not understand the worry because RM50 is so small compared to the salaries of those credit cards users.If you can have credit cards then you have to pay the annual fees.


EMPLOYEES PROVIDENT FUND EPF CONTRIBUTION
When Malaysia started to experience the impact of credit crunch, the government decided to lower the employees contribution to 8%. The government must be very optimistic about the 2010 economy that beginning 2010 the contribution will be increased to 11% again.
The setting up 1Malaysia Retirement Scheme to be administered by EPF is welcome because it will certainly benefit farmer with NO fixed income like me.


NEW INSURANCE AND TAKAFUL
By mid 2010 new motor insurance and takaful scheme will be set up to benefit low income Malaysians like me.


FINANCE
Commissions between agents and remisiers will be liberalised. The decision to introduce E Dividend scheme to shareholders is timely.
Malaysia as the biggest SUKUK (Islamic Bond) issuer will introduce more sukuks.


LIGHT RAIL TRANSIT

It is good that the government would spend large money for new LRT units. I took the LRT,KTMB and Express Rail Link trains on October 6th. The conditions were terrible. Squeeking noises and the units were hay wire as if the absorbers broke into pieces. Even the ticket machines were broken.LRT stations need more parking spaces too.


GOODS AND SERVICES TAX GST
The government is prepared to introduce GST in Malaysia after an in depth study. My question for a farmer like me can I charge gst if I sell my bananas?


FUEL SUBSIDY
PM Najib proposes a new fuel subsidy scheme using My Kad. Does that mean I have to show My Kad whenever I buy gas? I could foresee fraud.Even when I buy gas and use the petroleum company gift card my card was always been changed with someone else.There are potentials for identity lost if My Kad is used.


EDUCATION
Pre school education to be enhanced. Taska or kindergartens will be set up at government departments. This is a good idea because as more kindergartens are opened more graduate women can be employed thus they would shy away from their dreams to become artists and singers.
30 National Scholarships to be based on merit will be set up.I wonder what the proportion be like in 2010.......
PTPTN borrowers will be granted scholarship if they could obtain 1st class honors.


CONSORTIUM OF FELDA, FELCRA and RISDA

If the late Tun Razak set up FELDA (Federal Land Agriculture Authority) , FELCRA (Federal Land Cultivation and Research Authority) and RISDA (Rubber Industry Smallholders Development Authority) then PM Najib proposes a consortium of Felda, Felcra and Risda. I see this move as cost cutting measures because among these 3 agencies there are overlapping functions.


CONCLUSION
Overall this is an interesting budget. When time is hard then the most noble move is to reduce spending because revenue is also declining. But important areas such as education will continue receiving aids. Civil servants must understand the government financial ability that it could not pay bonuses but instead a sum of RM500 will be paid in December 2009. Despite H1N1 tourists continue to come to Malaysia.There are many places to see especially if you go to MELAKA.
"WHERE IT ALL BEGAN"

20 October 2009 - RELIEF

INSTALLATION OF NEW NEGERI SEMBILAN RULER

On 26 October the province of Negeri Sembilan where I'm residing will install a new ruler Tuanku Mukris Ibni Almarhum Tuanku Munawir. This will indeed be a special occasion if any of my fellow readers are interested to see a unique Malay installation ceremony but I am not sure if the ceremony can be viewed online. "DAULAT TUANKU"


BUDGET 2010

Prime Minister Najib who is also the Finance Minister will unveil the 2010 budget on 23 October. As everyone else I am also interested to know how the government is tackling the 9% deficit and whether the GST will be introduced.But I reckon even if GST is introduced it will be in stages.


MY HEALTH


I went to see a cardiologist at Serdang Hospital near Putrajaya during the first week of October. As I expected my ectopics was a result of my blood pressure pills so I have nothing to worry. Instead I am now being referred to the Kuala Pilah Out patient clinic for blood pressure observation.