The 5,200 square metre (56,000 square feet) wholesale store in the east of the capital New Delhi is open to food firms, institutions, restaurants and retailers.

Carrefour Group chief executive Lars Olofsson said in a statement on the firm's website yesterday that similar outlets were set to open in the near future.

"This first step is essential to allow the Carrefour teams to fully understand the specificities of the Indian market and then build our presence in other formats," he added.

Indian regulations mean that "cash and carry" is the only way that foreign firms can establish a presence in the country except for single-brand chains such as Reebok and Levi's.

The arrival in India of Carrefour – the world's second-largest retailer – comes some years after its main rival in the sector.

US giant Wal-Mart has already opened two wholesale stores and plans to open 10 more within four years.

Carrefour hopes the company's first outlet will lead to the creation of supermarkets across India, where a strong base of middle-class consumers has developed among the 1.1-billion-strong population.

India agreed in 2006 to allow foreign investment of up to 51% in the retail sector but only for shops selling single-branded products like Reebok, forcing overseas companies to sign franchise agreements with Indian firms.

Wal-Mart signed a partnership agreement in 2006 with India's Bharti Enterprises while Britain's Tesco formed a tie-up with the giant Tata Group conglomerate.

According to India's Economic Times newspaper yesterday, Carrefour and India's Future Group are in line to sign a deal in 2011.

The arrival of foreign companies into the Indian retail sector is a sensitive issue, as small shopkeepers fear being driven out of business by multinationals.

Industry bodies want the retail sales sector to be liberalised gradually but calls for the market to be opened up to foreign competition have increased in recent months, notably during visits by Western leaders.

Both US President Barack Obama and his French counterpart Nicolas Sarkozy urged India to remove restrictions on foreign trade and investment.

- AFP

Chrysler Group was recalling about 143,000 vehicles over the 2008-2011 model years in three separate filings, according to a report on the National Highway Traffic Safety Administration's website.

The number-three US automaker, managed by Italy's Fiat, recalled more than 22,000 2008-2011 Dodge Ram trucks to address a potential steering problem.

Chrysler also recalled about 65,000 2009 Dodge Journey sport utility vehicles that could fail to deploy air bags, and 56,000 2011 Ram trucks to fix a bearing that could cause them to stall.

Ford Motor, the nation's second-largest automaker, recalled almost 15,000 2011 model years of pickup trucks, Ford Edge and Lincoln MKX SUVs to address an electrical problem that could cause a fire, the government said.

- AFP

Najib, in his 2011 New Year message, said the government's plans and programmes would not be successful without the support and cooperation of the people.

"Let's not be satisfied and just sit back to be mere critics. Let's mould a better future for the coming generations.

"The power to build lies in the hands of the people. Fulfil this responsibility as best as you can," he said.

Najib reminded the present generation not to gamble away the future of the coming generations by making wrong decisions.

"This is not the time to experiment, but a time to renew and strengthen the trust in what has been proven to be effective," he said.

The prime minister said the government always adopted full responsibility in the management of the country, in particular the economy.

"As a government sensitive to the pulse of the people, we will not at all neglect the people's interests by making a promise or a decision which seems to be popular but is actually to the detriment of the interests of everyone," he said.

He said any government which promised or formulated popular but irresponsible policies would gain recognition or support in the short term, but in the long term it would be the people who would suffer.

"Learning from mistakes, throughout 2010, we built a strong foundation to ensure that the nation's potentials and resources can be stimulated and mobilised towards achieving the national vision," he said.

Comprehensive roadmap

Najib identified the Government Transformation Programme (GTP) along with the six National Key Result Areas (NKRA) and the Economic Transformation Programme (ETP) with the 12 National Key Economic Areas (NKEA) as the basis of the New Economic Model, the 10th Malaysia Plan and Budget 2011, which served as a comprehensive roadmap to raise the living standard and quality of life of the people to a higher level.

"All this while, the government, which was given the mandate, has striven with sincerity to meet the people's needs and national progress to the best of its ability.

"Unfortunately, some quarters have arbitrarily accused the government of being inclined to implement specific projects, particularly mega projects. Such accusations are not true at all," he said.

Some people, especially the opposition, had criticised the construction of several projects including the North-South Expressway, the Petronas Twin Towers and the Penang Bridge, he said, adding that they were now too embarrassed to admit their mistake because these projects had brought much benefit to the people.

"The question is if their opinions have proven to be wrong in such major matters, how can the people possibly trust any of their promises?" he said, adding that the opposition's proposed 100-day reform announced recently would only raise expenditure as it did not consider the realities of the national revenue and sources of funds.

Saying he hoped that the people would be able to make their own evaluation, Najib said the government had all along focused on the objective of ensuring sustainable economic growth.

This was because a boost in national wealth would provide for a rise in expenditure and enable the implementation of social justice, he said.

"It is directly proportional, meaning an increase in government revenue will result in a rise in expenditure for the people's well-being," he said and urged the people regardless of race and religion to heed the call to strive for the pinnacle of success.

- Bernama

In their 2011 New Year messages, they advised the people to harness positive values and discard negative qualities as they worked towards transforming the country into a developed nation by 2020.

MIC president G Palanivel said Malaysians must work together as one family to realise the country's full potential.

He appealed to every Malaysian "to understand our role and focus in building a strong and vibrant Malaysia".

"I appeal particularly to the youth of our country who are our hope for the future. They should understand their place in society and become aware of what they need to equip themselves so that when their turn comes to lead the country, their paths are clear and they march with confidence and pride," said Palanivel.

With the right awareness, he said, "they can build a Malaysia that is powerful, caring and successful".

"If they emulate the positive roles and paths that successful youths and youth movements have practised throughout the years, both locally and globally, I am sure that Malaysia will emerge as one of the greatest countries in the region, if not in the world," he said.

MCA president Dr Chua Soi Lek said the people should continue to support Prime Minister Najib Tun Razak who had introduced a slew of initiatives in the past one year.

"The people's support is very crucial in seeing to the success of the Government Transformation Programme (GTP) and Economic Transformation Programme (ETP) which are now off the ground and running," he said.

Chua said the MCA hoped that the government would invigorate private investments which would mean more liberalisation of policies, as well as open the country's doors to more foreign investments and expertise to bolster the economy.

He said given the people's support, the Barisan Nasional (BN) would continue to articulate the hopes, fears, expectations and frustrations of the various communities in Malaysia.

A wake-up call

Tourism Minister Dr Ng Yen Yen said that 2010 had been momentous for the ministry because, despite the global economic challenges, tourism had put its mark as an important revenue generator for the economy.

"We achieved the highest rate of return on investment per ringgit spent on promotion and the lowest cost of promotion per tourist at RM14. Average tourist spending was RM2,260 per trip," she said.

She said all Malaysians must be on high alert to ensure that Malaysia maintained its position as the top tourism destination of choice.

Social activist and 1Malaysia Foundation trustee Lee Lam Thye said Malaysians should make the culture of maintenance and safety a way of life.

"Let every Malaysian resolve to make Malaysia a safer place to live in," he said against the backdrop of high road accident rates, landslides and cave-ins in the country.

"What should be of utmost and immediate concern is Malaysia's infamous record for road safety, judging from the number of road deaths of 6,000 to 7,000 every year," he said.

He said that it was clearly a wake-up call to everyone, not only the bus drivers and bus operators but also the various authorities, to take full responsibility in making roads and highways safer.

On 1Malaysia, Lee said there should be more vigorous efforts to give meaning and realisation to the prime minister's call for a common and shared destiny for all.

He also said that Malaysians wished to see the authorities concerned do more to fight and prevent crime, and build safer communities in 2011.

PPP president M Kayveas said that the stability enjoyed by the country was the result of racial cooperation based on the spirit of tolerance and mutual respect.

He said that unity and close cooperation among the people would help achieve the GTP objectives based on the spirit of 1Malaysia: People First, Performance Now.

Future destiny

The Malaysian Anti-Corruption Commission panel adviser Robert Phang Miow Sin said the plurality of faiths of the country must be preserved, "whether we are Muslims, Christians, Hindus or Buddhists or of any other faith".

"Thus, all talk that causes differences, tensions and schisms must stop. It is our commonality that binds us as a nation since independence and that will shape our future destiny as 1Malaysians," said Phang, who is also Justices of the Peace chairman.

Malaysian Youth Council president Mohamed Maliki Mohamed Rapiee said the movement would continue to be the agent to convey the desires and voice of the people, particularly the young.

He said that in 2011, the council would focus on efforts to enhance participation and communication with all quarters to highlight the role of youths in the country.

In SEREMBAN, Negri Sembilan Menteri Besar Mohamad Hasan said 2011 was the year to draw up strategies to ensure that the country attained optimum productivity.

He said that the whole government machinery should be mobilised towards that goal and greater harmony must be forged among the people of the various races.

Mohamad reminded elected representatives in Negri Sembilan to continue to serve the people as best as they could.

In KUCHING, social activist Ang Lai Soon said that a total change of mental attitude for the happiness and betterment of oneself, family, community, nation and the entire world at large should be among the plethora of 2011 New Year resolutions.

He said that the change of thinking and mindset could succeed in spreading love and promoting peace, goodwill and harmony among mankind.

"Any negative feeling of fear, hatred, anger, envy and jealousy must not ever be allowed to cloud your rational judgment nor should you ever be biased," he said.

Gua Musang MP Tengku Razaleigh Hamzah wished all the people, leaders and members of all political parties and all elected representatives a more united Malaysia in the new year.

"I hope to see a common national agenda evolving in the country in pursuit of a more just, equitable and balanced prosperity for all, irrespective of race, religion and partisan political alignments," he said.

- Bernama

KUCHING: Prime Minister Najib Tun Razak's proposal of a mobile boat clinic to service the rural areas in Sarawak is being viewed with scepticism.

Although the idea is laudable, Parti Rakyat Sarawak president James Masing is concerned about the sustainability of Najib's plan to set up a hybrid mobile boat clinic to cater to villages connected by rivers in Sabah and Sarawak.

“Such a clinic is a good idea as it will help provide health services to the rural people, but can it be sustained?” he asked.

Announcing the proposal last Tuesday, Najib said the mobile boat clinic would enable people to enjoy better health and receive medical check-ups, medicine and advice.

“I hope the announcement by the prime minister should not become a mere slogan, which will soon evaporate if it does not get proper manpower.

“Our greatest problem in the rural areas is not the setting up of such facilities but rather getting good manpower.

“Do we have the manpower to do it in the long run?” asked Masing, who is also the State Land Development Minister.

He said that in Baleh alone there are six tributaries, adding that Sarawak is known as the land of many rivers.

Meanwhile, Hulu Rajang MP Billy Abit Joo said that Najib's plan is “timely” as the people in the rural areas urgently needed medical attention.

“It is practical as most villages and longhouses can only be reached by boat.”

Currently, the medical needs of the Sarawak rural areas are being served by flying doctor services and rural clinics.

KUALA LUMPUR: Outspoken Malaysian Anti-Corruption Commission (MACC) adviser Robert Phang has again trained his gun on Attorney-General Gani Patail for his deafening silence over his consorting with Shahidan Shafiee, the proxy of former Malaysia Airlines chairman, Tajuddin Ramli.

He described such a stance by Gani as a great disservice to the government in the fight against corruption.

“I have raised this before and the A-G's continued silence is deafening. PAS vice-president Salahuddin Ayob has now raised the same issue.

"This is not just a political issue but it also concerns the integrity of the highest law officer of the country. His actions and conduct can erode the credibility of the government,” he said in his New Year Message here yesterday.

There is also public scepticism over the conduct of the A-G in the exercise of his prosecutorial powers, he added.

“His reluctance to act in certain cases, while very vociferous in others, have given rise to allegations of selective prosecution bordering on persecution,” he said.

He noted that Salahuddin, too, has raised this seemingly double-standard practice involving the case of Rosli Dahlan who is widely known to be the lawyer handling the MAS case who has alleged that he had been victimised by rogue elements in the government.

“It is frightening that the whole machinery of the A-G’s office and the MACC can be used against one man.

"The government must dispel this perception of persecution against an innocent citizen,” he said.

Phang reiterated that he has raised these matters without any personal or political agenda.

“I am not a politician. I speak for what I believe to be true and right. These are matters that have been in the public domain and it is incumbent on me to remind the powers that be of the public displeasure.

"Only in this way civil activists like me can be of service to the nation, the government and the public. This is consistent with the reminder by Prime Minister Najib Tun Razak that those in power must not suffer from the four diseases – delusion, amnesia, inertia and arrogance.

"I pray that all civil servants, more so the politicians and ministers, will follow rigidly Najib's directive,” he said.

MACC work laudable

While applauding the achievements of MACC chief commissioner Abu Kassim in bringing to book some big names this year, including former minister Dr Ling Liong Sik in the alleged misappropriation of funds in the Port Klang Free Zone, Phang said the report by the forensic auditors has mentioned several other big names, including those still serving government, and who are also big names in their political party.

“These big names have quickly used the MACC’s clearance as a political mileage.

"This has invited public scepticism, especially when it is perceived that a thorough investigation has not been conducted and the clearance was just a political whitewash.

"That was what the public perceived in the case of former Selangor menteri besar Khir Toyo until he was charged recently. I remind these big names not to be so gleeful, bordering on arrogance,” he said.

With regard to the New Key Result Areas (NKRAs) for reduction of crimes, he congratulated Home Minister Hishammuddin Hussein for his hard work in developing innovative ways to assist the police in the fight against crime.

"Like a clean white sheet, it is now in Hishammuddin's hands to re-shape the police force into the principal respected law enforcement agency that it once was. Malaysians must support Inspector-General Ismail Omar in his goal for a crime-free society,” he said.

Phang, who is also chairman of Social Care Foundation, also called on NGOs like Ikim (Institute of Islamic Understanding Malaysia) and Perkasa, not to cause confusion and racial tension among the people.

“Regardless of whether we are Muslims, Christians, Hindus, and Buddhists or any other faiths, the plurality of faiths of this country must be preserved.

"I urge Ikim and Perkasa not to cause confusion by fanning the differences between us, but to build on the commonality that binds us. It’s a folly to claim that one's religion or god is the right one. All religions teach good things and we all believe in the one true God.

“All talks that cause differences, tensions and schisms must stop. If May 13, 1969, is to be remembered, it should be commemorated as a day of mourning when this multi-cultural and multi-religious country of ours was almost ruined.

"It must be our national resolution that May 13 must not recur or Malaysia will become a failed nation. It is our commonality that binds us as a nation since independence and that will shape our future destiny as 1Malaysian,” he said.

He added that Malaysia is a country of many faiths and although Islam is the official religion, the freedom to practise other faiths and religions is guaranteed.

“How we prosper as a nation cannot be based on fortune-telling and guessing games but on hard facts, sound policies and universal principles found in our religions,” he added.

Phang called on all Malaysians to make the pursuit of “unity, truth and justice” their New Year resolution.

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PAS man welcomes new MACC finding on Tajuddin

KOTA KINABALU: DAP Kota Kinabalu MP Hiew King Cheu wants the Election Commission (EC) to allow Malaysian citizens living abroad to register as “absent voters” and participate in the next general election.

He said that it was the right of Malaysians living overseas to vote as “absent voters” as they are protected under the Article 8 – equality – of the Federal Constitution.

"All persons are equal before the laws and entitled to the equal protection of the laws and there shall be no discrimination against citizens on the ground of religion, race, descent, place of birth or gender in any law…”, said Hiew, quoting the clauses of the constitution supporting his demand.

“If other nations can do that by allowing the citizens to vote in Malaysia, we don’t see why the Malaysian government cannot do the same.”

Hiew was referring to a renewed call by a group of Malaysians living overseas who are planning to take the EC and the government to court for denying their rights.

My Overseas Vote (MOV) International Coordinator Andrew Yong said that the group was looking to file the suit in the first half of 2011.

MOV is a campaign that was recently kicked off in London and aims to encourage Malaysians living or working abroad to vote and exercise their rights as Malaysian citizens.

It is raising funds to challenge the “discriminatory” regulations preventing many Malaysians overseas from registering themselves as “absent voters”.

“We want the court to declare that the Malaysian government and the EC cannot discriminate against the citizens abroad from voting on arbitrary grounds and we want the court to confirm that current regulations are against the Article 8 of the Federal Constitution, which guarantees equal treatment and right for all citizen under the laws”, said Yong.

Under the Election (Registration of Electors) Regulation 2002, only members of the armed forces, public servants, students on government scholarships and their spouses living overseas are eligible to register and vote as absent voters.

"We believe that there are no rational grounds for the government to say that only people working for the government can vote. We believe in the principle of one citizen, one vote," said Yong.

It is estimated that over one million Malaysians are living and working outside Malaysia and this could potentially provide up to a 9% increase in the total eligible votes.

KOTA KINABALU: The state government's reluctance to lift the freeze on the issuance of “native certificates” has come under scrutiny by opposition politicians.

Sepangar MP Eric Majimbun has questioned the real agenda behind the almost 30-year freeze on the “sijil anak negeri (SAN) also known as “native certificate”, which was frozen since the Berjaya government era back in 1982.

He suspected that this could just be an attempt by the state government to safeguard certain individuals, especially foreigners who managed to gain native title land using their new status after they became Malaysian citizens and natives thnrough dubious means.

He cited the case of Kedah-hailed Syed Kechik Syed Mohamed Al-Bukhary, the former Sabah strongman-cum-close aide of former chief Minister Mustapha Harun, who managed to purchase many parcels of prime native lands in the state using his native certificate.

“Among the prime lands purchased by the late Syed Kechik are the present site of Universiti Malaysia Sabah which he later sold back to the Sabah Foundation, and several other pieces in Telipok,” Majimbun said in a statement here yesterday.

He was responding to the statement by State Local Government and Housing Minister Hajiji Mohd Noor on Wednesday that the state government was in no hurry to lift the freeze on the issuance of native certificates to avoid a recurrence of abuses as witnessed prior to the freeze in 1982.

Hajiji said that both the government and people must be rational and not emotional in this matter as the possible consequences could far-reaching.

No interest in natives

Majimbun, who is also a deputy president of Sabah Progressive Party (SAPP), however, said Hajiji was making up excuses given that the BN government had put the spotlight on the issue by deciding to revoke a Sabahan's native status.

He said that it was a fact that the freeze on the native certificate has affected two generations of bona fide Sabahans who were born of mixed parentage.

They included the Sino-Kadazan or Dusun, Indian-Kadazan or Dusun, Sino-Murut, Pakistan-Bajau, American-Murut, English-Brunei, Arab-Idahan, Filipino-Kadazan and similar cases.

Among the common difficulties faced by them are problems purchasing Amanah Saham Bumiputera shares, purchasing or inheriting native land or registering their names on native titles.

Besides, they are also sidelined from educational opportunities meant for natives and economic incentives offered solely to Bumiputeras.

“To say that there’s no urgency to solve this problem shows that the present Umno-led state government does not care about Sabahans born through mixed marriages,” Majimbun said.

He said that it was also worrying that the State National Registration Department (NRD) identified and categorised those born of mixed parentage as “Sino-native” in their birth certificate.

"This is wrong. There is no such race as 'Sino-native” under the state constitution... unlike ‘Sino-Kadazan’, ‘Sino-Murut’ and all those mentioned earlier, Sino-native is not a race..."

Despite being appraised of the mistake last year, the State NRD continues to ignore it, he said.

China Eastern said in an announcement to the Hong Kong stock exchange the aircraft would be delivered in stages from 2012 to 2015 and would expand its capacity by 14.39%, or by 11.24%, including the fleet of its Shanghai Airlines subsidiary.

The airline did not disclose the price of its acquisition but said Airbus had granted it "significant price concessions... which will mainly affect the depreciation of the aircraft in the operation cost of the company".

The announcement marks the latest in a line of large deals by some of the bigger players in China's burgeoning aviation market.

Last week Shandong Airlines said it planned to buy 15 Boeing passenger planes worth up to US$1.2 billion, to be delivered between 2014 and 2015.

In November, Air China said it had agreed to buy 20 passenger planes from Airbus in deal worth US$4.49 billion. Half the planes would be A330s and the other half were to be A350 series aircraft, the company said.

Also in November, China Southern Airlines said it had agreed to buy 36 planes from Airbus for 3.78 billion US dollars.

In September, Hong Kong-based carrier Cathay Pacific said it had confirmed an order for 30 long-range A350 Airbus aircraft with a book price of US$7.82 billion – the biggest single order in the carrier's history.

China's rapidly expanding economy has seen the country's aviation sector grow at a blistering pace over the last few years, with few analysts seeing any likelihood of a slowdown.

Boeing said in November that it expected China's civil aircraft fleet to more than triple over the next 20 years, with 5,180 planes by 2029 compared with 1,570 last year.

Chinese airlines will need 4,330 new jets valued at US$480 billion over the next two decades, compared with global demand of 30,900 units during the period, according to Boeing.

- AFP

Focus will most likely be on construction and, oil and gas related counters, which are reported to be among the biggest beneficiaries for the future projects.

According to Affin Investment Bank, the execution of Prime Minister Najib Tun Razak's reform agenda would be a key market re-rating catalyst.

"Regardless of whether there will be a snap general election in 2011, expectations are that there will be continuous positive news flow and execution of the transformation programmes, thereby sustaining market sentiment.

"Any tangible results, of which expectations are generally low, will have room to surprise investors. Fundamentally, the reforms will cascade into higher domestic demand growth and this will lead to positive earnings revisions," said the investment bank.

It also said Malaysia was the fourth best performer in the region after the Thai, Indonesian and Philippine (excluding Japanese) stock markets.

The benchmark FTSE Bursa Malaysia KLCI Index (FBM KLCI) ended on Dec 30, 2010 at 1,518.91, up 16.2% compared with 1,272.78 recorded on Dec 31, 2009.

The local bourse ended the trading year a day earlier as Dec 31 was declared a public holiday by Najib to celebrate the success of the Malaysian football squad in winning the 2010 AFF Suzuki Cup yesterday.

Good prospects

MIDF Research, in its research note, said the prospects for the local bourse is good, moving into 2011 with foreign liquidity continuing to be drawn to Malaysia.

In October, FTSE re-classified Malaysia as an "advanced emerging market" to take effect in June next year.

"This is expected to attract foreign funds tracking FTSE indices (estimated to be more than US$3 trillion). Malaysia will be one of only nine countries to be in the category. Only four Asian countries are in the developed bracket (Hong Kong, Japan, Singapore, Korea) out of 25," it said.

The research house said it was setting a 12-month base-case FBM KLCI target of 1,650 points for 2011.

"The index can easily overshoot the target in a liquidity driven market," it added.

As for Affin Investment Bank, it revised upwards the FBM KLCI from 1,600 to 1,630 points level.The FBM KLCI marked its highest point of 1,528.01 on Nov 10 and the lowest point of 1,233.86 on Feb 9.

The market registered the highest daily volume of 1.863 billion shares on Jan 5 while the lowest transacted was 449.51 million shares on July 5.

As at year-end, there were 29 initial public offerings (IPO) with significant highlights on Petronas Chemicals Group Bhd, a direct subsidiary of Petronas, which was reported to be the largest IPO in Southeast Asia valued at US$4.04 billion at a retail offer price of RM5.05 per share.

The listing of Petronas Chemicals on the Main Market in November also somewhat increased the value of other oil and gas related counters in the local bourse like Malaysia Marine and Heavy Engineering Holdings Bhd.

Other highlights also included the listing of Islamic Development Bank's RM1 billion sukuk Medium-Term Note Programme on Bursa Malaysia in October, marking the first multilateral development bank to list its ringgit sukuk on the exchange.

Greater efficiency

Besides, in August, the Securities Commission Malaysia, Bank Negara Malaysia and Bursa Malaysia jointly introduced the electronic share payment facility for share transactions to promote further the use of e-payments in the stock market.

With e-share payment, share sales proceeds can now be paid directly into the investors' bank accounts, made available on the same day.

This was followed by the introduction of eDividend, which is a service that allows an issuer to electronically pay cash dividend entitlements directly into investors' bank accounts instead of making payment via cheques.

This is part of the stock exchange operator's strategies to promote greater efficiency of the payment system which is aligned to the national agenda of migrating to electronic payment.

As at Dec 13, a total of 962 companies were listed on the Main Market and on the ACE Market.

Todate, 17 companies changed names this year, 40 companies under the P17 category and 12 companies under the Guidance Note 3 (GN3) category.

As of Dec 29, in terms of daily trading participation, local institutions constituted the largest participation accounting for 52.78% followed by local retail (25.15%) and foreign (22.07%).

On the local front, the Second Capital Market Masterplan, scheduled to be launched by the first-quarter of next year, will likely boost the local bourse and bond market as well as offer further protection for investors.

Among measures expected to be introduced relate to support programmes for market growth as well as providing investors with greater diversity in terms of products and services.

A key highlight will be to strengthen the investor protection regime and ensure surveillance and supervision of the market at the highest level.

Meanwhile, on the regional front, Bursa Malaysia, Singapore Stock Exchange and the Stock Exchange of Thailand are set to go live on the Asean Exchange Linkage by the second-half of next year.

The Philippines Stock Exchange is expected to follow in the first half of 2012.

The Asean Exchange Linkage, which is said to be the first step towards a unified trading market that will attract more institutional flow to the region, will not only provide ease of access but also increase market utility substantially both from trade outside and intra-Asean.

In addition to the Asean Exchange Linkage, the exchanges would promote leading Asean public companies under the brand of "Asean Star".

The cross-border offering of collective investment scheme by mutual recognition will start in the first-half of next year for non-retail investors.

Later, it will extend to retail public, first for plain products by the end of 2012 and then for complex products by 2013.

- Bernama

Party president G Palanivel said Malaysian football has been on the rise since Rajagopal took charge of the under-23 side.

The team won the SEA Games gold medal in Laos last December and yesterday clinched the AFF Suzuki cup for the first time.

"Before this, the country waited many years to get back Asean glory.

"We were in the doldrums all these years," said Palanivel.

"This man beat all the odds, he was focused and believed in himself and his team. Such dedication must be rewarded," he added.

The MIC president said Rajagopal built a winning team made up of players with varied skills which is much more difficult than coaching an individual sportsman.

"This is the first time Malaysia won the AFF championship since the biennial tournament was introduced in 1996," he added.

Even though the "feel good", arising from the national football team winning the Suzuki Cup yesterday, managed to lift the market barometer to hit an intra-day high of 1,529.95, it failed to sustain until the closing session.

At 5pm, the FTSE Bursa Malaysia (FBM) KLCI closed 5.43 points lower at 1,518.91, but was 16.2 per cent higher when compared with Dec 31, 2009's close of 1,272.78.

The FBM KLCI recorded its highest closing level of 1,528.01 on Nov 10.

During the entire trading session, the benchmark index moved between 1,518.76 and 1,529.95.

The Finance Index dropped 22.62 points to 13,856.32, the Plantation Index was 40.15 points lower at 8,036.25 and the Industrial Index slipped 11.4 points to 2,832.95.

The FBM Emas Index declined 32.729 points to 10,374.98, the FBM 70 Index eased 37.119 points to 10,897.9 while the FBM Ace Index jumped 46.07 points to 4,347.56.

Losers led gainers 401 to 385 while 278 counters were unchanged, 327 untraded and 52 others were suspended.

Total volume improved to 1.119 billion shares, worth RM1.872 billion, from yesterday's 908.416 million shares valued at RM1.394 billion.

The local bourse will be closed tomorrow for a public holiday following the Malaysia's victory over Indonesia in the Suzuki Cup yesterday.

On the Main Market, volume rose to 805.93 million shares, worth RM1.82 billion, from yesterday's close of 648.265 million units valued at RM1.342 billion.

Warrants, however, declined to 130.06 million shares, valued at RM26.717 million, from 171.425 million units, worth RM33.303 million, recorded yesterday.

Turnover on the ACE Market surged to 167.457 million shares, valued at RM20.823 million, from Wednesday's 82.025 million units, worth RM14.296 million.

Top losers, Kuala Lumpur Kepong lost 64 sen to RM22.10, DiGi.Com dropped 50 sen to RM24.60 and British American Tobacco was 48 sen lower at RM45.

Among active stocks, Green Ocean Corporation added three sen to 10.5 sen, Tejari Technologies was unchanged at 16.5 sen while Time Dotcom rose 2.5 sen to 79.5 sen.

Heavyweights CIMB eased four sen to RM8.50, Maybank slipped five sen to RM8.50, Sime Darby eased one sen to RM8.80 while Petronas Chemicals was unchanged at RM5.52.

Consumer products accounted for 77.359 million shares traded on the Main Market, industrial products 169.998 million, construction 48.323 million, trade and services 230.054 million, technology 21.943 million, infrastructure 27.832 million, finance 61.952 million, hotels 2.288 million, properties 127.142 million, plantations 34.966 million, mining 309,000, REITs 3.665 million and closed/fund 100,100.

At a promotional event near Tokyo in January, "we will offer 2Ds alone to children aged six and younger as continuing to watch 3D images for a long time could negatively affect the development of their eyes," Nintendo said.

The new-generation DS console – which enables users to play 3D games without special glasses – missed the Christmas season but will be released on Feb 26 in Japan and in March in the United States, Europe and Australia.

Nintendo is to hold an admission-free three-day event in Chiba, east of Tokyo, from Jan 8 to let gamers try the new console ahead of its launch.

The Kyoto-based company issued the caution in a message posted on its website to those who plan to try the 3DS.

Nintendo noted that experts say 3D images – not only those of the Nintendo 3DS but also those in cinemas and on television – could affect the development of vision in small children.

The gaming gadget features the trademark DS dual screens, with the upper screen providing 3D images and the other controlled by touch with a stylus.

The illusion of depth can be increased or decreased so that games can be played in both 2D and 3D

Nintendo called for use of the console's "parental control" function so that children aged six and below play only in 2D, and it noted that some people feel more tired when playing 3D games than 2D versions.

The hugely popular Nintendo DS has sold more than 130 million units worldwide and its new 3D feature has drawn keen interest from media and gamers.

Sony has released its PlayStation Move system, which enables users wearing special glasses to play 3D games using wand-shaped motion controllers.

In motion-sensing games, Nintendo's Wii has faced competition from Microsoft's Kinect for the Xbox 360 system, which lets players use body gestures and does not require handheld controllers.

- AFP

But industry experts remain cautious that 2011 will not be another bumper year.

At the Kuala Lumpur International Motor Show 2010, it was smiles all around as the industry was delighted by a record total industry volume (TIV) growth of 13.8% for the 11-month period to November, bolstered by positive consumer sentiment and better economic landscape.

An analyst from a local stockbroking house expected TIV for 2010 to finish an average 9.7% growth, year-on-year, driven by new model launches.

Costs were well contained due to economies of scale as margins widened owing to the strengthening ringgit despite a mild increase in steel prices, the analyst said.

Moving forward into 2011, the industry is set to strengthen gradually but at a modest pace, in line with regional and global auto demand recovery, in view of several rounds of interest rate hike and higher petrol prices.

OSK Research expected TIV of new motor vehicles to grow 5% in tandem with the Gross Domestic Product (GDP) growth, which was projected at 5.8%.

The replacement cycle for new vehicle purchases typically lasts three to four years, which would reflect the positive year-on-year growth in TIV before a decline kicks in.

Limited risk

In a research note, OSK said the model pipeline slated for launch could boost demand particularly for Perodua Myvi and Proton Persona replacement.

It foresees limited risk of any further upside in hire-purchase rates, which was already high, given the government's effort to push loans growth due to the deceleration in economic growth.

Another analyst said although industry players, such as UMW, introduced a hybrid line-up in their stable after the 100% exemption on excise duty and efforts to promote hybrid cars, there is unlikely to be a big shift toward this direction.

Proton is slated to launch its hybrid version of the Exora as early as 2012 but some remain sceptical of the time-line for mass production.

Auto parts firms are expected to see respectable earnings growth benefitting from the upcoming Myvi replacement and the setting up of a regional manufacturing base by Volkswagen and Peugeot, the analyst added.

Elsewhere, Proton will be watched closely with efforts to lift its sports car unit, Lotus Group, which will invest a substantial sum for its involvement in Formula 1 as title sponsor and part-owner of Lotus Renault GP team.

Meanwhile, the Lotus Racing Formula One team, owned by AirAsia's Tony Fernandes has initiated legal proceedings against Proton over the use of the name "Lotus".

In January, the British High Court will hear and decide on who has the right to use the name "Lotus" in the next season of F1.

Then, there is the status of relationship between Proton and Perodua. The industry is awaiting the decision by the authorities on whether to merge both entities or to have them cooperate through other arrangements.

On the other hand, MIDF Research was not so positive and projected TIV to see a slight dip in sales of -1.6%, year on year, as car sales momentum stabilised in the second-half of the year, suggesting a flattish growth prospect that could stretch into 2011.

Major dampener

Research senior vice-president and head of research department Zulkifli Hamzah said the industry was not expected to remain vibrant as the market was heading into a consolidation phase with TIV estimated to be flattish at best.

He said interest rate remains "friendly" but he did not discount the possibility of interest rate hikes in the second-half that could be a major dampener to sales.

Interest rate movements and stringent bank approval criterion will impact low-mid income bracket consumers of the national car companies which make up about 70% of total vehicle sales in Malaysia.

Zulkifli said the fact that banks were offering higher interest rates for national car models was testament to the inherent default risk in this particular segment.

"A dip in the sale of national car models will have a significant bearing on the industry TIV," he said.

MIDF does not expect another bumper year in 2011 as the replacement cycle, commonly defined as five years, is ending.

The previous high was in 2005 and what happened this year is a cyclical repeat of the peak.

Throughout the year, DRB-Hicom and Naza managed to lure European partners like Volkswagen and Peugeot, respectively, into committing more investments here from 2011 onwards as part of efforts to make Asean an export hub.

Tan Chong is keen to expand its commercial vehicle market to Indochina and the Brunei, Indonesia, Malaysia and Philippines-East Asia Growth Area.

- Bernama

GEORGE TOWN: A DAP branch leader has called on Deputy Chief Minister II P Ramasamy to immediately clear his name from allegations of nepotism and cronyism raised by three individuals in a letter to the party leadership recently.

Bagan Luar branch chairman G Asoghan (picture) also advised Ramasamy to stop issuing unwarranted legal threats against FMT and its journalist over the revelation of the complaint letter dated Nov 25 sent by the trio.

“Stop shooting the messenger. Such threats are against freedom of information advocated by DAP and Pakatan Rakyat. The media has the right to report on issues. Ramasamy should concentrate on quelling the allegations and clearing his name once and for all.

“The allegations are serious and could undermine the party's reputation and credibility,” Asoghan told FMT.

The complainants -- M Mahenthiran, 35, S Deventhiran, 34, and T Manogaran, 38, addressed their letter to Penang Chief Minister and DAP secretary-general Lim Guan Eng.

They have also sent copies of the letter to party national chairman Karpal Singh, state chairman Chow Kon Yeow, Bukit Mertajam MP Chong Eng and Datuk Keramat assemblyman Jagdeep Singh Deo.

They have demanded that the party leadership, especially Lim, take serious note and probe into the matter.

They have also given a one-month ultimatum to the party leadership to investigate the case. Failing which, they threatened to hold a mass street protest and lodge an official complaint with the Malaysian Anti- Corruption Commission (MACC).

In their letter, the trio alleged that Ramasamy's cronies were awarded many state contracts.

The contracts include Tamil school development and computer supply, and Penang Water Supply Corporation and Penang Hindu Endowments Board tenders.

They listed 16 people as Ramasamy's cronies, including his personal aides Jayabalan and M Satees.

Meanwhile, Ramasamy had denied the allegations and claimed that his accusers were not party members.

Acting as Ramasamy's legal counsel, Seri Delima assemblyman RSN Rayer said his client would demand a retraction and apology from FMT and its journalist over an article dated Dec 22 that revealed the trio’s complaint letter.

Karpal has assured that the party leadership would investigate the allegations.

Asoghan welcomed Karpal’s initiative to probe and said Ramasamy should wait for its outcome.

“Why is Ramasamy jumping the gun and putting the cart before the horse? Let the party investigate and reveal the truth.

“Ramasamy and his people should not try to divert the attention from the subject matter,” said Asoghan.

PETALING JAYA: The government will launch a nationwide “My Daftar” campaign from Feb 19 to 26 next year in an effort to resolve the problems faced by Malaysian Indians who do not have relevant documents pertaining to their birth, identification and citizenship.

The campaign, organised by the Special Implementation Taskforce on the Indian Community in collaboration with the Home Ministry, would, among others, seek to identify individuals who possess a birth certificate but have not applied for a MyKad, and those who do not possess a birth certificate and therefore unable to secure a MyKad.

Human Resources Minister Dr S Subramaniam said the campaign will also target children who do not possess a birth certificate and therefore unable to go to school as well as children and young people in residential homes run by the Social Welfare Department and voluntary organisations who do not possess sufficient documentation.

It is also targeted at individuals above 55 years of age, who were born in Malaya, and who possess a red identification card and those who have applied for citizenship.

During the campaign period, Subramaniam said, the Registration Department office in 30 towns in nine states, namely Kedah, Pulau Pinang, Perak, Selangor, Kuala Lumpur, Pahang, Negri Sembilan, Malacca and Johor, will set up special counters to process applicants from the Indian community.

Earlier this year, the taskforce, through a series of “meet-the-people” sessions, has already identified 902 cases of Malaysian Indians who have difficulties in securing the relevant documentation.

Subramaniam said these are currently at various stages of being processed by the taskforce and the National Registration Department.

“This is a major effort on the part of the federal government to come to grips with an age-old problem which is a major grievance among a sizeable section of the Indian community."

Through this campaign, we are seeking to find a permanent solution to all Malaysian Indians who were not able to secure the necessary documents thus far. I thank the Home Ministry and the National Registration Department for their partnership and cooperation,” he added.

The minister said the taskforce together with its supporting organisations will launch an aggressive media campaign through the print media, radio, TV and Internet including the support and cooperation of the Department of Information.

Taskforce consultant, N Siva Subramaniam, will be serving as the campaign coordinator.

Those interested to know more about this campaign could contact the taskforce secretariat officers Premala at 03-88711280 or 03-88711371 or Thana at 016-295 7172.

KUCHING: A Sarawak PKR leader has welcomed Deputy Chief Minister George Chan’s assurance that the state government was against the erosion of Sarawak's “special rights” as detailed in the 18-point agreement.

“I welcome the sudden realisation of state Barisan Nasional leaders on Sarawak’s rights which we in Pakatan Rakyat or PKR have been voicing all the while. But I am wondering what, after 30 years as Sarawak leaders, did they do to preserve and protect such rights," said state PKR chairman Baru Bian.

Bian was responding to comments by Chan during a dinner with the Christian community in Miri on Monday.

Chan had said that of particular concern to the state were the rights on religious freedom and practices.

He said all top leaders of the state BN had pledged to defend those special rights in the interests of Sarawakians.

He also said that all the leaders had agreed to speak with “one voice”, especially on the special rights under the 18-point agreement which were given to Sarawak in 1963 on her joining Sabah, Singapore and Malaya to form the federation of Malaysia.

Sabah was accorded a 20-point agreement.

The 18-point agreement includes the issue of religious practices, civil rights of non-Muslims, use of local languages, immigration, labour laws, Borneanisation, and the control of natural resources and land administration, among others.

Not being confrontational

Chan said that by bringing up the special rights issue, the people in Sarawak were not being confrontational.

“We do not want to go against any authority, but we must ensure that the freedom to practise our religion and our culture will not erode. It has to be preserved at all costs for the sake of harmony and peace,” he had said.

Reacting to the comments, Bian said: “I believe that now they have realised what we have been saying is true and of great concern to Sarawakians.

“If for the last 30 years the state BN didn’t succeed in enforcing these 18 points, what makes the people of Sarawak believe now they can defend those rights?

“For PKR and Pakatan, those rights are already signed into our manifesto on Dec 19, 2009 to respect the 1963 Malaysian agreement.

“It is funny the issues that we highlight like NCR (native customary rights) land seems to be of concern to BN so suddenly, but for the last 30 years it was not bothered.

“Sarawakians should give Pakatan the opportunity in this (coming state) election to enforce all these rights and we promise Sarawakians we will not disappoint them,” said Bian.

YEAR-END SPECIAL G Tangarasan was in no mood for casual chit-chat. It was mid-morning, both suppliers and customers were criss-crossing paths in his spices shop and he had ledger sheets to tally.

“Take as many pictures as you want,” he said in mild irritation. “But I have no time to talk to you. Go ask my son your questions.”

The 36-year-old Krishnan Tangarasan is a fourth generation owner of VKM Traders, a spices shop his great-grandfather began in 1927.

His family business is one of the many pulses of old inner KL that has defied the onslaught of modernity to claim a position as an unofficial heritage site.

“My great-grandfather arrived in KL from South India in the early 1920s,” Krishnan said. “He started this business but it was my grandfather who really established it.”

“Our shop was originally located in Lebuh Ampang but that area is prone to floods so we moved here, to Jalan Tun H.S. Lee, in 2000.”

A glance around VKM Traders is like taking a peek back in time.

From the heavy iron safe to the scarred iron paperweight, not much has changed over the years. Even his 59-year-old father prefers to use a calculator and ledger books instead of the computer in the little back room.

“I am more confident balancing my books this way,” he said gruffly. “And my calculations are always accurate. Even the income tax department is impressed.”

While both father and son applauded the coat of modernity that old KL now wears, there is also a tinge of fear of what the future may hold for their family business.

Krishnan may very well be the last generation to run the spices shop which is struggling to keep up with the likes of hypermarkets and supermarkets.

“We used to supply spices to Baba,” he smiled. “And now they are supplying their spices to us. Even our customers are waning. Our only regulars are those from the older generation.”

The other group of customers are the tourists who find it more authentic to scoop spices out of gunnysacks than pick packets off the rack.

“There were two German tourists who came here to buy black pepper,” Krishnan recalled. “I asked why they didn't just go to a supermarket and they said they could always do that back home. They wanted the real experience of buying spices.”

“But these groups aren't enough to keep us open for the next 10 years. My father has accepted that his grandfather's little empire may be in its sunset years. But we'll see. I'll try to keep it going for as long as I can.”

The chef of spin

Just a hop, skip and jump away from VKM Traders is Lorong Bandar 1, an alley that is almost unnoticeable. That little slip road is where Ahmad Ibrahim, 33, feeds about 300 hungry customers every day.

Ahmad bade farewell to his hometown of Taiping to join his band of relatives in KL years ago. His passion for food resulted in Nabil Store, a crudely constructed stall in the middle of the alley.

But ask anyone where it is and you'll get a blank stare.

To the regulars, Ahmad's stall is known as “Mi Goreng Kuali Pusing”.

A few months after setting up shop, word spread about his scrumptious fried mee and a queue began forming at lunchtime. To keep up with the overwhelming orders, Ahmad began spinning his frying pan in order to cook faster.

“But when people ask me where I learnt that style of cooking, I tell them that it's an old habit from my lorry driving days,” he confided with a laugh. “Fried mee with prawns is the only dish I serve six days a week.”

“It's a simple dish but I think people keep coming back because of the secret ingredient – my love for cooking. I could do this everyday of my life.”

The old KL was home to Ahmad but the new one is responsible for his booming business. The influx of larger stores and backpacker inns has herded more people into Lorong Bandar 1.

“I will be here for a long, long time,” he promised. “For as long as people enjoy eating fried mee with prawns!”

The diety maker

A Kuna arrived in KL as a mere baby when his Malaysian father decided to leave Chennai for his motherland. Fifteen years ago, the 40-year-old decided to open Prasad Jewellery, one of only two deity making businesses in Malaysia.

His main factory is in Kajang but the sacred statues are also painstakingly constructed in a tiny room beneath a banana leaf restaurant in Lebuh Ampang.

There, two young Indian workers sit bent over slabs of silver and gold that they lovingly pound into the shape of various deities.

Kuna, who is an architect by profession, firmly believes that his father made the right move in returning to KL.

“There is a very a good market here,” he said. “The demand for religious artifacts has only increased over the years. I'm already teaching my children the tricks of the trade.”

A business like this is strictly a family one and Kuna will not have it any other way. His only business partner, he said in all seriousness, is God.

“But KL has tempted many youngsters to move away from such businesses into land and property markets,” he sighed. “I can teach my children but if they don't want to carry on my business then it will be the end.”

“I would never have had this good an opportunity in India. To me if you say you can't find work in KL, you are either stupid or lazy. Opportunities are everywhere in this city. You just need to run after them instead of waiting for people to give you a push.”

The unlikely devotee

Ranjit Kaur is the last person you would expect to see calling out orders in the 146-year-old Sze Ya temple. But the former nurse has been a familiar face in this heritage site for five years now and is not planning on leaving anytime soon.

“My father was a temple watchman so I grew up here,” she said as she cast a fond glance around the incense-filled premises. “I was practically brought up by the family that runs this place so when I heard they needed an extra pair of hands, I didn't hesitate.”

The 50-year-old does “everything that needs to be done” from dawn till dusk without so much as a bleat of complaint.

“This is my home and this is my family,” she said before gesturing to a devotee to place her clutch of incense sticks elsewhere.

A small gasp suddenly escaped her lips and she hurried to a massive gong across the room. Picking up two wooden sticks she pounded it thrice and then returned it to the incense desk.

“We hit that gong in acknowledgment of the devotees' petitions,” she explained. “I've already adopted the Taoist culture and I offer the same prayers as they do. This is a very special place.”

The seafood veteran

Hiah Siek Kee has two golden rules when it comes to smoking a cigar. The first is to always accompany it with whiskey because it will “always taste better”.

The second is to always use a matchstick to light up. Never mind that he uses a whole box of matches on a single cigar.

It is little trouble compared to the potential throat complications that come with using a lighter. Considering that he is 84 years old, those are two rules worth following.

Age hasn't kept Hiah from running his seafood business with the same sharpness that he wielded when he first ventured into the industry 63 years ago.

“I worked in Singapore with a company that supplied seafood,” he said while puffing on his cigar. “Then I came to KL to open another branch. How many years ago was that?”

He pulled an abacus towards him and after a few rapid clicks, announced, “43 years ago”.

Kwang Yeow Heng started off as a grocery store that only sold dried seafood and today sells Chinese herbs as well. The shelves are lined with Japanese scallops, abalone, sea cucumbers, starfish and bird's nests.

Hanging beside them are numerous laminated newspaper cuttings about his business. Behind his long desk are framed pictures of him with various local personalities.

When the wet market moved from where Central Market now stands, many of Hiah's neighbours moved with it. But Hiah stood his ground and is now the only shop on that stretch that is reminiscent of old KL.

“People still come here to buy my food,” he said with a shrug when asked how he managed to survive. Also, my business focuses on wholesalers and our prices are very reasonable. And we have always supplied quality so they trust us. That is very important for a business, you know.”

“Today my two daughters run this business. It's doing very well, if I say so myself. KL may be modern now but people's taste has not changed. So I think we'll be around for a while.”

His daughter, Margaret, has kept a sharp eye on her father throughout the conversation to ensure he doesn't over-excite himself.

When someone remarked that “uncle” is very impressive for his age, she retorted, “It is not 'uncle'. It is boss.”

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YEAR-END SPECIAL KUALA LUMPUR: Apart from the possibility of an early election, next year could be a dramatic one with the possible conviction of influential Opposition Leader Anwar Ibrahim who is facing a second sodomy trial.

His conviction could prove lethal for Pakatan Rakyat, the fledgling opposition bloc Anwar leads, given the former deputy prime minister's role as the "cohesive element" that holds the frail pact together amid clear ideological clashes.

Anwar is charged with sodomising his former aide, Mohd Saiful Bukhari Azlan, a charge he vehemently claimed is trumped up. While Pakatan leaders have refrained from making any subjudicial statements about the ongoing trial, many have silently expressed belief that it will lead to their leader's eventual conviction.

The Permatang Pauh MP is generally agreed by all Pakatan component parties as the person fit for the prime minister post should the opposition bloc wrest federal power.

His conviction, however, will leave Pakatan with a gap to fill. This is the contentious part. PKR's recently concluded polls saw Anwar's blue-eyed-boy Azmin Ali clinching the deputy president's post amid a bitter fight for the No 2 post that saw contender Zaid Ibrahim sulking and quitting the party.

Following this, the image of the party was also battered as indicated in a recent survey conducted by Universiti Malaya.

Azmin is widely tipped to be Anwar's successor. But doubts remain if Azmin can muster the needed support from other component parties.

While it is without a doubt that Azmin won with a staggering majority, the fractious PKR polls, marred by as low as 10% voter turnout, allegations of irregularities and nepotism, also signalled the strong anti-Azmin presence within the party.

This will be one of the major issues that will dominate next year's headlines in case Anwar is convicted. Observers have noted that the failure to address this will lead to the eventual demise of Pakatan.

PAS, DAP and the Islamic state

Leaders in PAS, the Islamist party in Pakatan, have also hinted that it fancies a go at the (opposition leader's) post. Its argument is that Malaysia is "technically" a Muslim country and therefore the post must be taken by a Malay Muslim leader.

The staunch secularist DAP has not shown any signs that it will back PAS' political agenda. The heated antagonism between the two on the sensitive issue of the "Islamic state" has yet to be resolved.

It is notable that there are no open arguments between the two on this but, observers say, this is due to a compromise reached and engineered by Anwar, because an open debate on the subject would only give Barisan Nasional the ammunition needed to drive a wedge between them.

DAP chairman Karpal Singh at the Pakatan's recent second national convention said there should be dialogue on the Islamic state issue between his party and PAS. This was welcomed by PAS although the move was seen as a political expediency on the part of the Islamist party.

All eyes will be focused on the success of this dialogue between the two parties. Any inroad made on this extremely taboo subject will give Pakatan a glimmer of hope in a sense that its ideological incoherence can be tackled through diplomacy.

Will the third force impact Pakatan?

This year has seen the emergence of the so-called "third force", a movement now going under the name of Malaysian Civil Liberties Movement (MCLM) comprising "concerned individuals", mostly professionals.

Started by prominent blogger and Malaysia Today webmaster Raja Petra Kamaruddin – self-exiled and now UK-based – the movement aims to field in as many as 30 independent candidates for the 13th general election, which is widely speculated to be held in the first quarter of next year.

MCLM has named two candidates so far, both lawyers, and is likely to field them in urban areas like Lembah Pantai or Petaling Jaya Selatan where voting trend among a more educated electorate would likely be based on ideology than personality.

MCLM president Haris Ibrahim said that it would "avoid" a three-cornered fight given that MCLM shares the same objective as Pakatan – to oust BN – but it is not certain how this can be achieved given that the opposition bloc will be keen on maintaining its position as the only opposition force.

Observers have discounted MCLM's ability to affect the outcome of the 13th general election, but they have recognised the movement's ability to spoil Pakatan's chance by splitting the votes. Holding only 77 from the 222 Dewan Rakyat seats, or just four seats away from giving BN a two-thirds majority, Pakatan cannot afford this.

Minor as they are, pundits will have a keen interest on the development of the MCLM in 2011.

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YEAR-END SPECIAL PETALING JAYA: Despite available laws governing transport in “developed” Malaysia, enforcement, lack of political will and backdoor licensing remain the bane of bus operators in Sabah and Sarawak.

In Sabah and Sarawak's land-locked terrain, illegal public transport operators rule the roost and legitimate tax-paying bus operators who service 16 government agencies just so they can carry out their daily business of shuttling passengers are being forced out of the industry.

According to the Pan Malaysian Bus Operators Association (PMBOA), it's just a matter of time before the legimitate operators go bust.

The PMBOA has 130 bus companies nationwide which are listed members. Of this, five bus operators service Sabah while 25 run routes in Sarawak.

Already they have sent a plea to the government to take over their businesses.

Said PMBOA president Mohamad Ashfar Ali: "We have many laws already in place, but the will to stop them (illegal operators) is another. It all boils down to enforcement.

"Most of the illegal operators don't use proper buses. These illegal operators go to the universities, estates and the markets. All you have to do is wait by the roadside and the car (or van) will come along.

"Mind you, these transporters are not the taxis who usually waited around hotels for tourists."

He also said that legitimate buses faced a lot of competition from illegal operators, who used regular routes to take passengers.

"The bus may (come and) leave a bus-stand at 10am, but an illegal driver (kereta sapu) will be there 10 minutes before, and they will tell the passengers waiting that the bus isn't coming," he said.

CVLB licensed illegals

Ashfar said what was most shocking to the PMBOA members was when they discovered that some of these van drivers are licensed by the Commercial Vehicle Licensing Board (CVLB) to operate the same routes used by PMBOA members.

He said according to the government, the original intention of legalising the illegal operators was to bring them under governmental supervision.

But in most cases the plan had backfired.

On the streets and rough roads in Borneo it's survival of the fittest and the general perception of red tape and laws is, to put it bluntly, “for morons”.

When asked, most drivers of illegal public transport in Sabah and Sarawak said they did not know who actually was their boss. For the commuters, the whole operation smacked of “cartel-style” business.

Ashraf said he took PMBOA's concern over the illegal operators to then Sabah CVLB chairman (and late Batu Sapi MP) Edmond Chong.

He claimed Chong shrugged off his (Ashraf's) worries.

"When I asked him when (the licensing of vans) is going to stop, he (Chong) told me that there was a public demand for such public transport, so they had to regularise these operators," Ashfar said.

Incidentally, the CVLB has three chairmen; one each for Sabah, Sarawak and Peninsular Malaysia.

Asked if illegal operators were largely a problem in Sabah and Sarawak, Ashfar disagreed.

"You don't see it (in the peninsula) because you're not looking for it," he said.

"It (the illegal operator) could be in the form of a factory bus (bas kilang), a chartered bus, or even a tour bus. It doesn't have to be a rundown vehicle."

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Bleak journey ahead for bus companies

YEAR-END SPECIAL PETALING JAYA: With renowned skyscrapers, swanky shopping malls, LRT and the soon-to-be built RM36 billion Mass Rail Transit (MRT), one would assume that Malaysia has a public transport policy or plan in place. Not so, according to Pan Malaysia Bus Operators Association (PMBOA).

PMBOA vice-president Razali Endon said the government has never drafted a plan or policy for public transport and as a result, the sector has been mired in problems, increasing red tape and rising cost.

"We've been asking for a policy for the last 20 years... but nothing has happened. The lack of policy has contributed to many problems, including the minibus operations," he said.

Razali told FMT that the government introduced minibuses after independence to complement Malaysia's existing bus companies.

“What went wrong was that there was no proper system. Any Tom, Dick and Harry was able to operate the buses (and get permits for the routes),” he said

Razali added that the poor management of the transport system encouraged many minibus operators to run on the same routes.

In turn, bus drivers treated roads like Grand Prix tracks, racing to get passengers first. Some even made detours to outdo their competitors.

The large number of bus operators also added to the country's already muddied transport system.

According to Konsortium Transnasional Bhd (KTB) executive director Tengku Hasmadi Tengku Hashim, prior to the country's independence, bus companies were allowed to be set up in different towns.

“You had bus companies setting up in Port Dickson and Klang and many other towns. There was the Selangor Omnibus, Temerloh Omnibus, Len Seng, and so on.

"After independence more companies joined the industry," he said, adding that currently there were 18 bus operators in KL and about 13 companies operating in Malacca.

Incredible amount of red tape

Competition aside, operators are faced with a ridiculous amount of bureaucracy.

Said Razali: "Bus operators also have to deal with an incredible amount of red tape. There is no one single ministry in charge of public transport. Companies have to report to a whopping 16 different agencies covering their operations.

"Contrary to popular opinion, the Ministry of Transport doesn't actually take care of public transport as a whole. The ministry is only in charge of enforcement."

For starters, he said, route permits were decided by the Commercial Vehicle Licensing Board, which comes under the Prime Minister's Department.

"Employee issues are handled by the Ministry of Human Resources. Road taxes are issued by the Road Transport Department and engine emissions are inspected by the Department of Environment while Puspakom checks the roadworthiness of every bus," he said.

Adding to the confusion, Razali said, is the newly-formed Land Public Transport Commission (SPAD), introduced to the public in June this year.

But many of PMBOA members themselves are unsure of SPAD's exact role in the transport system.

Said Hasmadi: "They (SPAD) only met us once or twice (but) now suddenly they have become the 17th agency. Are they able to issue or revoke permits? Have they been able to advise the government on the bus fares? It's all a nightmare and bus operators are confused.

“Who do we listen to? Who's in charge? Nobody knows.

“It's not like in other countries, like Singapore with its Land Transport Authority. They are the ones who issue the permit, set the tests (for bus drivers), decide on the subsidies and so on."

More grouses

Another issue that has struck a chord with the operators is the lack of response from the government over the upcoming MRT.

Construction on the MRT is expected to roll out in July 2011, two months before SPAD unveils its purported September masterplan on public transport.

Todate the bus companies are in the dark and have not been consulted in regard to the RM36 billion MRT development, which incidentally will see rail lines spread over 60km in the Klang Valley.

“I really don't know what they're planning. We haven't been informed about this. They have not talked to us,” said Razali.

Echoing his views, Hasmadi added: "I'm not surprised... when they wanted to form RapidKL, they never came to us (for discussions).”

Hasmadi, however, was more concerned with the heavy emphasis on the Klang Valley, whilst the transport system in other parts of the country was neglected.

“The MRT can ferry thousands of passengers in an hour. But that is for passengers in Sungai Buloh, Cheras and Damansara.

“What about the people in Baling, Port Dickson, Grik, Taiping, Teluk Intan, Segamat and everywhere else? Are you going to provide the MRT for all these people too?” he asked.

He also questioned the rationale behind the government's decision to focus on trains when buses were seen as a cheaper investment.

Hasmadi suggested that the government learn from other transport systems and stressed the introduction of a cost-per-mileage plan, which had been successfully implemented in Indonesia, as opposed to the current system here.

(Cost-per-mileage is a system where the government subsidises the cost of a trip made by a public transport vehicle.)

No money for better bus plan

Citing an example, Hasmadi said: "Let's say the government sets the fare from Klang to KL at RM2, and that the trip would cost RM200 each way.

"The company would carry (maybe) 50 people each way, (creating) a revenue of RM100. How can the operator collect this money and pay RM200 (in costs)?

"Let's say a trip is 50km (in length). Hence it would be RM4 per km. If the government wanted to make it affordable, it would have to pay companies RM4.40 for every km.

"This sum of RM4 is for companies to pay the cost. The 40 sen is for your return on investment," he said, adding that the fare would then go to the government.

With the excess cash, Hasmadi said that the company would be able to afford new buses and encourage the public to use their services.

He also proposed the introduction of dedicated bus lanes, such as the busways used by the Indonesian bus company TransJakarta.

"If you pay the mileage and provide the service, the ridership will come," Hasmadi said, adding that the Indonesian government was earning profits through cost-per-mileage via TransJakarta.

According to Razali, PMBOA had proposed to the Malacca government to introduce a cost-per-mileage system.

“We have already negotiated with the state government in Malacca. We asked for RM1 per km. (But) they said that they had no money and that they were waiting for the federal government to give it.

“We do not know if the federal government is going to give them money or not,” said Razali.

Razali said that although Malacca was able to buy new buses for the local council to operate, the operation was now running at a loss.

The situation comes as no surprise to PMBOA members who blame the federal government's lack of long-term planning over public transport as the cause.

“We want the government to clarify with us whether they want to go into business or if they want us to do the business.

"It all depends on the government, and how are they going to go about it.

"But frankly they (government) couldn't care less at all. They couldn't be bothered (about what happens to us),” he said.

Also read:

Bleak journey ahead for bus companies

Khalid, of the Timber Workers Union, defeated Syed Shahir Syed Mohamud, a PKR member who had led the organisation for the past six years.

Syed Shahir’s running mate for the powerful post of secretary-general, Abdullah Sani Abdul Halim, who is the PKR Kuala Langat MP, also lost to Khalid’s teammate Abdul Halim Mansor, from the Petroluem and Chemical Industries Union.

Mansor, a two-term deputy secretary-general, was mentored in the intricacies of the trade union organisation by none other than highly respected trade unionist and long-time secretary-general G Rajasegaran, who retired from the movement after almost 40 years of service.

MTUC sources said the Khalid-Mansor team was quite formidable and inclusive and would help to unite the movement and put back the congress on its original path of being the “true champion of workers in the country”.

Khalid said that his first task would be to unite the organisation and work towards achieving substantial benefits for workers.

He felt that for too long the organaisation had been perceived as an anti-government outfit and he was determined to change this perspection and genuinely work for the betterment of the workers and the nation.

This is the first time in almost 30 years that politicians were rejected by the membership.

A total of 475 delegates from 116 unions cast their votes at the triennial conferece of the congress which ended here today.

Among those aligned to Khalid who won hands down were Mohd Jaafar Majid (National Union of Telecom Employees ) as deputy president and A Balasubramaniam (vice-president).

- Bernama

The FTSE Bursa Malaysia (FBM) KLCI closed 6.9 points higher at 1,524.34.

The benchmark index had moved between 1,520.19 and 1,526.93 after opening at 1,520.45.

Its all-time high was 1,528.01, recorded on Nov 10.

The Finance Index rose 38.44 points to 13,878.94, the Plantation Index advanced 43.42 points to 8,076.4 and the Industrial Index increased 20.38 points to 2,844.35.

The FBM Emas Index went up 49.26 points to 10,407.71, the FBM 70 Index was 56.52 points higher at 10,935.02 and the FBM Ace Index added 11.59 points to 4,301.49.

Winners thumped losers by 468 to 294 while 314 counters were unchanged, 316 untraded and 33 others suspended.

Total volume rose to 908.416 million shares valued at RM1.394 billion from 822.881 million units worth RM1.22 billion yesterday.

On the Main Market, volume increased to 648.265 million units valued at RM1.342 billion from yesterday's close of 617.653 million shares worth RM1.178 billion.

Warrants improved to 171.425 million units worth RM33.303 million from 95.63 million units valued at RM18.787 million recorded.

Turnover on the ACE Market, however, declined to 82.025 million units worth RM14.296 million from 93.066 million shares valued at RM17.997 million.

The top gainer was British American Tobacco which rose almost 2% or 60 sen to RM45.48, followed by Hap Seng Consolidated with 37 sen gain to RM6.96 and Tradewinds Plantation which rose 31 sen to RM3.41.

Among active stocks, Maxbiz Corporation rose 14.5 sen to 23.5 sen, Tejari Technologies shed three sen to 16.5 sen and Limahsoon added 2.5 sen to four sen.

Among heavyweights, CIMB and Petronas Chemicals edged down one sen each to RM8.54 and RM5.52 respectively while Maybank added six sen to RM8.55.

Sime Darby was four sen higher at RM8.81, Genting gained 18 sen to RM11.16 and Maxis added three sen to RM5.35.

Consumer products accounted for 80.157 million shares traded on the Main Market, industrial products 134.788 million, construction 46.151 million, trade and services 201.688 million, technology 25.315 million, infrastructure 20.772 million, finance 42.882 million, hotels 2.014 million, properties 58.59 million, plantations 32.511 million, mining 1.134 million, REITs 2.136 million and closed/fund 129,000.

- Bernama

Faekah said there was no provision for the state secretary to be appointed within a certain time.

She said the state government had started the selection process last Nov 27 by setting up an interviewing panel in line with the practice note.

The panel had short-listed the candidates and presented their names to the Sultan for his consideration, Faekah said.

The Selangor government did not have to form the panel, but it wanted to promote a transparent, independent and responsible process of appointing high-ranking officers, she said.

"The Menteri Besar did not want to use his deciding power to appoint high-ranking government officers," Faekah added in a statement.

Secretary to the Government Mohd Sidek Hassan had announced on Monday the appointment of Selangor Islamic Religious Department director Mohd Khusrin Munawi as state secretary, effective Jan 1.

He had said the appointment was consented to by Sultan Sharafuddin Idris Shah.

Menteri Besar Abdul Khalid Ibrahim had objected to the appointment, saying he had not been advised on it.

-Bernama

Also read:

Selproa cadang sidang DUN tergempar tolak pelantikan Khusrin

In a filing to Bursa Malaysia, TM said: "We take these allegations seriously and we will extend all necessary cooperation where required to the relevant authorities.

"Through a proposed Board sub-committee, we will further conduct a thorough internal investigation to safeguard the integrity of our procurement process and Code of Business Ethics."

Responding to an article that appeared on a news portal today, the company said it has a zero tolerance policy towards such improprieties and will take appropriate action in the event that any of its employees were indeed involved.

The allegation surfaced after French-based telecommunication equipment group Alcatel-Lucent (ALU) concluded its settlement with the US Securities and Exchange Comission and the US Department of Justice which was made public on Monday following their investigations of violations of the Foreign Corrupt Practices Act.

Alcatel was said to have violated the Foreign Corrupt Practices Act prior to its 2006 merger with US-based Lucent Technologies.

According to reports, ALU agreed to pay US$137 million in fines and penalties to settle the charges after reaching an agreement with the US Justice Department and Securities and Exchange Commission.

The settlement cover activities in several countries in Africa, Latin America, Asia, including Malaysia.

The investigation in Malaysia covers events that occurred between October 2004 and February 2006 and involves alleged improper payments to TM employees, TM said.

In a separate statement, Axiata Group Bhd which was part of TM during the period the payment was allegedly made, said it views these potential allegations seriously and will investigate this matter.

"Although there was no specific mention of any contract relating to Axiata or its subsidiaries, there may be a potential indirect link as this matter allegedly occurred between October 2004 and February 2006 prior to the demerger of TM Group," it said.

Axiata said as a responsible corporate citizen, the company and its subsidiaries uphold the highest standards of integrity and ethical standards in all its dealings and does not condone or tolerate any breach of code of conduct by its employees, subsidiaries, partners or vendors.

Meanwhile, the Malaysian Anti-Corruption Commission (MACC) said it will verify with the parties concerned to obtain details of the allegations before appropriate action is taken.

"MACC seeks the cooperation of the media not to speculate before the details can be verified," it said in a statement.

-Bernama

Also read:

'Alcatel paid bribes to Malaysian officials'

SHAH ALAM: Mahkamah Sesyen Jenayah hari ini menetapkan 28 Januari depan bagi mendengar hujah penggulungan kes remaja Aminulrasyid Amzah mati akibat ditembak polis selepas Timbalan Pendakwa Raya (DPP) menutup perbicaraan kes tersebut petang tadi.

Hakim Latifah Mohd Tahar semasa keputusan dalam kamarnya turut menetapkan 24 Januari depan bagi kedua-dua pihak pendakwa raya dan pembelaan memfailkan hujah penggulungan selepas selesai mendengar keterangan saksi terakhir perbicaraan iaitu pegawai polis daripada Ibu Pejabat Polis Daerah (IPD) Shah Alam.

Sebelum itu, DPP Mohd Dusuki Mokhtar semasa memohon untuk menutup perbicaraan kes tersebut turut menawarkan 30 saksi yang disenaraikan kepada pihak pembelaan jika terdapat sebarang keputusan daripada hakim supaya tertuduh, Koperal Jenain Subi membela diri.

Seramai 39 saksi dikemukakan pihak pendakwa raya dan dipanggil untuk memberi keterangan sepanjang prosiding perbicaraan berlangsung sejak tiga bulan lalu.

Sementara itu, saksi ke-38 ASP Abdul Halim Ismail semasa menyambung keterangannya memberitahu mahkamah tembakan terpaksa dilepaskan jika kereta yang dikejar tidak mampu dihentikan.

"Apakah cara yang terbaik bagi polis untuk berhentikan kereta yang laju dalam keadaan fakta kes ini?" soal Dusuki.

"Cuba kejar dan berhentikan kereta semana yang mampu. Kalau tak mampu, lepaskan sahaja," kata Halim.

Halim turut bersetuju dengan pertanyaan Dusuki bahawa tiada undang-undang dalam Akta Pengangkutan Jalan (APJ) 1987 yang membenarkan polis menggunakan senjata api untuk memberhentikan sesuatu kenderaan yang dikejar.

Namun beliau menegaskan penggunaan senjata dibolehkan apabila merujuk kepada Perintah Tetap Ketua Polis Negara D222 jika pihak polis berada dalam kedudukan terancam.

Katanya, tiada cara lain (dalam keadaan terdesak) melainkan tembakan terpaksa dilepaskan kearah bahagian belakang kereta untuk memberhentikan kereta yang dikejar.

Beliau ketika ditanya peguam bela M Athimulan berkata, seseorang boleh dianggap penjenayah jika kereta yang dikejar itu enggan berhenti walau disuruh berbuat demikian.

"Jika dia lari pantas tapi tahu polis kejar dan tidak mahu berhenti, kita anggap ia adalah penjenayah," katanya.

Selain itu, mahkamah turut mendengar keterangan daripada saksi ke-39 Detektif Koperal Zainon Harun daripada Cawangan Jenayah IPD Shah Alam.

Zainon yang juga saksi terakhir merupakan individu yang bertanggungjawab menghubungi trak penunda luar supaya mengangkut kereta yang dipandu Aminulrasyid pada malam kejadian pada 26 April lalu.

Jenain, 48, dituduh menyebabkan kematian Aminulrasyid mengikut Seksyen 304(a) Kanun Keseksaan.

Beliau boleh dikenakan hukuman penjara sehingga 30 tahun dan denda jika sabit kesalahan.

TUARAN: The Barisan Nasional government in Sabah is in no hurry to indulge the opposition'sc incessant bandying of the “native” issue and its demand to reinstate the native certificates which was put on freeze by the Berjaya government in 1982.

Urging Sabahans not to be emotional, Local Government and Housing Minister Hajiji Noor said any action to reinstate the native certificates must be “thoroughly thought out”.

"The Berjaya government must have had good reasons for freezing it (native certificates). Even the PBS (Parti Bersatu Sabah) government did not lift it.

"As such, any action we now take must be carefully thought out. We must weigh the consequences... it could be far-reaching," he said.

Hajiji was commenting on recent calls by the opposition to get freeze lifted.

"We do what we think is right for the people and not just because the opposition says so," he said.

The issue of native certificates came to the forefront following the controversy involving Sabah DAP chief Jimmy Wong's “native” status after it was raised by BN-Sekong assemblyman Samsudin Yahya in the state assembly in November last year.

Sabah DAP had pointed out that while the issuance of the native certificate was frozen by the Berjaya government in 1982, the PBS administration under Joseph Pairin Kitingan had done nothing to help such natives during its nine-year rule of the state from 1985.

The exchange of barbs between DAP and PBS leaders has caused much discomfort among members of the “Sino-native” community which has been thrust into the limelight.

Noting that the state government only issued native certificates to natives, Hajiji said: "It is not correct to say that the state is depriving the rights of Sino-natives or children of other mixed parents just because we have not lifted the freeze.

"As I had announced quite sometime ago, those who are eligible and are seeking to buy native land or investing in ASB can always go to the State Bumiputra Affairs Office to get their status endorsed.

"This stop-gap measure has benefited many half-natives," he said.

KUCHING: Security guard, Toni bin Bahram, is a native from Simujan. He moved to Kuching with his wife and seven children way back in 1985, seeking a life less riddled with poverty. After all, word was that Bumiputeras received “special privileges from the (Barisan Nasional) government”.

But Toni soon discovered that even among the Bumipteras there were classes.

Speaking to reporters recently, Toni said: "I am a true blooded Malay. But I received nothing. I got free air, free sunshine, free rain and nothing else.

"Year in, year out, the government is blind to my plight. Look at the mansions: the top leaders are staying in. Look at my house.

"I made trips yearly seeking for help... I just want to make sure we don’t end up in tragedy if the house collapses.”

Toni was alluding to his house in Kampung Maimunah which he built in 1985.

Since 2007 he has been pleading with the state government for assistance because his house is dangerously perched on the banks of a river. But all his pleas had fallen on deaf ears.

In a final bid to save his family home, Toni asked a friend to speak to Pending assemblywoman Violet Yong.

On Monday morning, Yong visited Toni's home and was shocked to see the back portion of the house tilting towards the river.

Toni's wife told Yong and reporters that her grandson had fallen into the river once and was saved by a neighbour.

"Now the whole family is worried... whether it is meal time or sleep time... just being in the house is worrisome... But where can we go?" she asked.

Distorted picture

When Toni first came to Kuching he worked in Bernas. But he had to stop work when an accident happened while he was carrying a gunny sack of rice.

With seven mouths to feed at that time, he was forced to take on a job as a security guard. He earns RM650 per month.

Of his seven children, only one son has made it to University Sarawak. The rest of them have lives that mirror Toni's.

Toni is pinning his hopes on Adam to pull the family out of the poverty cycle.

"I am now staying with four children, one working in a factory earning RM550, one not working, one studying, my wife and two children.

"It is difficult to go on living now with essential goods increasing daily,” he said.

According to Yong, Toni's story of frustration belies the picture painted by the BN state government.

"The state government has been painting a distorted picture... Out of 40% of Malaysian earning less than RM1,500 per month, most are Malays or Bumiputeras.

"The State BN has been in power for over 4 decades and hard core poverty is one big issue they cannot address. It is such a shame. Penang is there for two years and hardcore poor no longer exists there,” Yong said adding that she will raise Toni's matter with the Ministry of Rural development.

SHAH ALAM: Persatuan Pegawai Wakil Rakyat Pakatan Selangor (Selproa) mencadangkan Dewan Undangan Negeri (DUN) Selangor mengadakan sidang tergempar bagi menolak pelantikan Datuk Khusrin Munawi sebagai Setiausaha Kerajaan (SUK) Selangor.

Presiden Selproa Abdul Razak Ismail berkata tindakan itu perlu bagi menjamin kepentingan rakyat Selangor dipelihara.

“Saya cadangkan agar ahli-ahli Dewan Undangan Negeri mengadakan sidang tergempar menolak pelantikan Khusrin. Kita tidak mahu Khusrin jadi duri dalam daging sepanjang pentadbiran Pakatan Rakyat Selangor,” katanya.

Beliau juga menganggap tindakan mencadangkan Khusrin kepada Istana Selangor sebagai Setiausaha Kerajaan Selangor yang baru, menunjukkan kerajaan Unmo Barisan Nasional (BN) memperalat institusi istana.

“Istana dipergunakan sekali lagi untuk mengesahkan tindakan kerajaan Umno BN untuk melakukan rampasan kuasa di Selangor.

“Sedangkan, Bab 3 Undang-undang Tubuh Negeri Selangor menunjukkan, pelantikan SUK tidak wajib mendapat perkenaan Sultan kerana SUK akan melapor terus kepada Menteri Besar,” kata Razak yang percaya ia bertujuan mengulangi tragedi rampasan kuasa di Perak.

Mengulas lanjut, Razak berkata, jika benar ura-ura Khusrin akan mengangkat sumpah sebagai SUK di hadapan Sultan Selangor pada 5 Januari ini, ia bertentangan dengan tradisi pelantikan SUK.

“Biasanya, SUK mengangkat sumpah pelantikan depan Menteri Besar sebagai simbol kerjasama rapat antara pegawai kerajaan dengan pentadbiran Menteri Besar, katanya.

Pelantikan Khusrin sebagai SUK baru berkuatkuasa mulai 1 Januari diumum Ketua Setiausaha Negara Tan Sri Sidek Hassan beberapa hari lalu.

Khusrin sebelum ini adalah Pengarah Jabatan Agama Islam Selangor (Jais) dan terlibat dengan pelbagai kontroversi sebelum ini, antaranya tangkapan bekas Mufti Perlis, Dr Mohd Asri Zainal Abidin atas tuduhan mengajar tanpa tauliah di Selangor.

Beliau juga terbabit dengan kontroversi isu amaran keras terhadap Ahli Dewan Undangan Negeri (Adun) Serdang, Teo Nie Ching yang memasuki sebuah surau sedangkan ia tidak bertentangan dengan fatwa Jabatan Kemajuan Islam Malaysia (Jakim).

Namun, Khusrin tidak berbuat apa-apa apabila Ahli Parlimen Hulu Selangor dari BN, P Kamalanathan yang turut melakukan perkara sama di surau ketika kempen pilihan raya kecil Hulu Selangor, didedah kepada umum.

PETALING JAYA: Penang Deputy Chief Minister II P Ramasamy has denied a news report in FreeMalaysiaToday concerning his alleged involvement in nepotism and cronyism.

“I am not involved in these tenders and contracts. They are decided by the tender committee, not me," he told FMT today.

Ramasamy said that he was going to consult with his lawyers to decide the next course of action.

"I have nothing against the reporter. The last thing I want to do is take legal action. But it (his story) has to be based on facts," he added.

In another news report, Ramasamy's lawyer RSN Rayer was quoted as saying that notices and a letter of demand were being drafted against FMT.

In the Dec 22 report, three men claiming to be DAP members accused Ramasamy of using his powers as the DCM II to award many contracts to purported cronies.

These contracts allegedly included Tamil school development and computer supplies, Penang Water Supply Corporation and Penang Hindu Endowments Board tenders.

However, Ramasamy rubbished their claims, adding that the trio, S Deventhiran, M Mahendran and T Manogaran were not even DAP members to begin with.

He said that their names had been checked out with the membership list at DAP's headquarters.

Meanwhile, FMT managing editor Phlip Rodrigues said that the news portal would stick by its report.

Also Read:

DCM II under probe for alleged cronyism

NEW YORK: Facebook is challenging Google's supremacy on the Internet with a radically different approach to how people live, work, play and search online.

While Google delivers search results selected by algorithms that take into account a user's Web history, Facebook boasts a richer level of personalisation based on one's own "likes" and the recommendations of Facebook friends.

Mark Zuckerberg, who founded Facebook in his Harvard University dorm room six years ago and is now worth an estimated US$6.9 billion), refers to it as the "social graph".

"I think what we've found is that when you can use products with your friends and your family and the people you care about they tend to be more engaging," Zuckerberg said in an interview with the CBS show "60 Minutes".

"The social graph is incredibly broad," said Wedbush Securities social media analyst Lou Kerner, picking up on Zuckerberg's favourite phrase. "It includes not only what you do and what you like but people you know and what they like and the companies you interact with."

For some Internet watchers like Kerner, Facebook is constructing a parallel network built around the interactions of its more than 500 million members.

"I refer to Facebook as the second Internet, maybe more valuable than the first because we're all interconnected on it," Kerner said.

"Social media is an increasingly important part of how you reach people and it's a growing part of every marketer's budget," he said.

"The idea is you do not want to fight Facebook, you want to embrace Facebook and leverage Facebook because this is where people are going to spend increasing amounts of time," he said.

Collision course

According to online tracking firm comScore, Google receives more unique monthly visitors than Facebook but visitors to Facebook spend more time at the site than they do on Google properties.

Since early 2010, Facebook has been rolling out features which put it on a collision course with Google – an @facebook.com email service which competes with Google's Gmail and "Facebook Questions," a search engine of sorts which lets Facebook members ask questions and get answers from other members.

Facebook has also been facing off with Google on the hiring front, forcing the Mountain View, California-based Google to recently raise salaries by 10% across the board.

They've become competitive in some areas, but it's not that Facebook has grown at Google's expense or that Facebook is growing and Google is shrinking," said Danny Sullivan, editor of technology blog SearchEngineLand.com.

"Google is not going away," agreed Kerner. "Google, in fact, I think is going to benefit from the emergence of social media.

"Because what it's doing is it's driving people to spend more time online and when you’re spending more time online, you end up doing more searches," he said.

"Where they've really been encroaching on each other more is in the display space," Sullivan said. "Facebook has a lot of people who buy display advertising. Google wants to sell more display advertising."

Sullivan also said Google "has been trying to encroach on their social area, but they haven't been very successful."

Zuckerberg, who was named earlier this month as the Time magazine person of the year, acknowledged to CBS "there are areas where the companies compete."

"But then, there are all these areas where we just don't compete at all," he said.

Time managing editor Richard Stengel said Zuckerberg – the second youngest person named to the cover of Time's ritual annual issue – and his social networking service were "transforming the way we live our lives every day".

Facebook's growth is not necessarily a bad thing for Google, which has been coming under increased scrutiny from anti-trust authorities in both the United States and Europe.

"Some of it plays very well for Google," Sullivan said. "Google is able to say, 'You know, we have this stiff competition out there.'

"It's not necessarily to Google's disadvantage that Facebook is growing."

- AFP

The minimum monthly salary in the city will be increased to 1,160 yuan from 960 yuan on Jan 1, according to a statement posted on the government's website yesterday.

In July, Beijing increased the minimum wage by 20% to 960 yuan.

China launched a round of minimum wage hikes this year after a spate of labour disputes and a string of employee suicides highlighted growing discontent among the country's millions of low-paid workers.

This latest increase in the nation's capital comes amid growing official and consumer anxiety over rising inflation, which topped 5% in November for the first time in more than two years.

Food costs soared nearly 12% year-on-year last month while property prices continued to rise, defying government efforts to cool the red-hot real estate market.

Ever-fearful of inflation's historical potential to spark unrest in China, top leaders have been pulling on a number of policy levers to rein in consumer prices and tame runaway house prices.

On Saturday, the central bank hiked interest rates for the second time in less than three months after ordering lenders to keep more money in reserve, effectively limiting the amount of funds they can lend.

Premier Wen Jiabao went on national radio at the weekend to reassure listeners that the government would be able to tackle inflation and house prices that have risen out of the reach of many ordinary Chinese.

Wen said on Sunday he understood that recent price rises had "actually made life even more difficult for people on low and medium incomes".

But he stressed that thanks to government intervention, "we are fully able to control the general level of prices" and said he was confident that housing prices would come back down to a "reasonable level".

- AFP

HONG KONG: Asian stock markets were lacklustre today, weighed by China's weekend interest rate hike and weakness on Wall Street, but with firm winter oil prices boosting energy shares.

Sydney's S&P/ASX 200 index was down 0.35% in the afternoon, while Shanghai's Composite Index was off by 0.24% in the morning following heavy losses since the weekend.

However Tokyo's Nikkei index climbed 0.17% and Hong Kong's Hang Seng was up 0.68%.

Traders said Sydney was partly reacting to the gloomier outlook for China, where there are worries authorities may take more measures to cool inflation after the second interest rate hike in less than three months on Saturday.

Resource shares such as Rio Tinto and BHP were both down in Sydney, although rare earths developer Lynas Corp saw its shares leap more than 12% after saying China had slashed its export quotas for the lucrative metals.

Shanghai saw wide-ranging losses and was almost four percent lower from the start of the week.

"The market may stay weak on uncertainties over property tightening measures and the inflation outlook," Zhang Xiang, an analyst at Guodu Securities, told Dow Jones Newswires.

However, Chinese energy stocks were providing support in Hong Kong, where energy giant CNOOC was up 1.22% and PetroChina gained 1.02%.

And Japanese energy stocks such as Inpex and Showa Shell Sekiyu gave Tokyo a lift, even as exporters such as Honda and Canon lost ground due to a stronger yen.

Oil prices slipped slightly but the decline was likely to be limited as demand for heating oil is expected to stay firm due to the cold spell gripping the United States and Europe, analysts said.

New York's main contract, light sweet crude for February delivery, sank 11 US cents to US$91.38 per barrel.

Brent North Sea crude for February was down 14 US cents at US$94.24.

US blue chip stocks hit fresh two-year highs on Tuesday thanks to a strong performance from the energy and utilities sectors, despite disappointing data on US consumer confidence and continued weakness in the housing market.

The Dow Jones Industrial Average rose 0.18%, while the broader S&P 500 index was up 0.08% and the energy-light NASDAQ slipped 0.16%.

The dollar fell back against the euro in Asia following an earlier buying spree prompted by a rise in US bond yields following a lacklustre sale of the US five-year notes.

The euro rose to 1.3128 dollars in Tokyo morning trade against 1.3116 dollars in New York late yesterday. The single European currency was marginally higher at 108.04 yen against 108.00 yen.

The dollar fell to 82.29 yen from 82.43 yen.

Gold opened at 1,403.00-1,404.00 US dollars an ounce in Hong Kong, up from yesterday's close of 1,390.00-1,391.00 dollars.

- AFP

"Fiat was right to set up in northeastern Brazil, and if it were up to me, whether I am president or not, other companies would set up in other states" in the region, Lula said Pernambuco state.

"Brazil will be the fifth largest economy in the world before the Olympic Games" to be held in Rio De Janeiro in 2016, he added.

The Italian auto group said earlier this month it would invest 1.3 billion euros (US$1.7 billion) in the new plant.

The investment is part of the company's 2011-2014 strategic plan, which calls for expenditure of a total of 4.4 billion euros in Brazil, where it has been the country's leading automaker for the last nine years.

The new plant will churn out around 200,000 vehicles a year and will provide jobs for 3,500 people, Fiat said.

"Brazil, where by 2014 we want to be selling more than a million vehicles a year, is a strategic zone in our expansion plans," Fiat chief executive Sergio Marchionne said earlier this month.

Lula has hailed his eight-year record leading Latin America's biggest nation as he prepares to hand the reins of power to anointed successor Dilma Rousseff, who was elected president in October and will assume office Jan 1.

The 65-year-old former metalworker and trade union leader leaves office with a popularity rating above 80% and a claim to having reduced social inequalities and presided over a long period of prosperity.

- AFP

The device would likely be based on Sony's handheld PSP Go game console, would be made by Sony Ericsson Mobile Communications and run Google's Android operating system, said the Asahi Shimbun's English edition, citing unnamed sources.

Sony hopes to take on Apple's iPhone, Research in Motion's BlackBerry and Nokia devices by offering the first smartphone that is based on a portable game console, with a set of controls that allows very advanced gaming.

The PSP Go, launched in November 2009, already features software downloads through a wireless connection, allowing players to also browse the Internet, watch movies, play music and read books and comics.

The new PlayStation handset would similarly work with Sony's online media platform, the company's answer to Apple's iTunes.

Sony hopes the phone will stimulate sales in the sluggish videogame console market, said the Asahi.

Sony called the newspaper report "speculation" and declined to comment.

- AFP

Investment pledged by foreigners this year reached US$12.9 billion, up 12.1% from a year earlier, the Ministry of Knowledge Economy said.

"The gain reflects confidence about our solid economic fundamentals," it said in a statement, adding tensions with North Korea had no serious impact.

In the fourth quarter of 2010, foreign investment rose 62% year-on-year to US$5.61 billion, it said.

Next year South Korea aims to attract US$15 billion in foreign investment, the ministry said, citing the country's fast economic recovery.

Investment from the United States rose 28.3% to US$1.9 billion this year, while that from Japan gained 7.7% to US$2.08 billion. Investment from European countries fell 41.7% to US$3.09 billion.

The ministry said efforts to build up new green-growth industries fuelled overseas investments in such areas as biomedicine, solar energy and wind power generation.

- AFP

Paypal and the government of Chongqing have signed a deal to jointly develop a foreign exchange settlement platform in the mega-city to enable users to pay for cross-border online shopping transactions, they said in a joint statement.

They also agreed to set up five international e-commerce centres over the next few months for verification, investment promotion, national telesales, merchant training and regional business development.

Chongqing has become a popular destination for foreign companies wanting to set up operations away from coastal regions, where rising wages and a labour shortage have driven up their costs.

The city's mayor, Huang Qifan, said the deal with Paypal "will help Chongqing become China's settlement centre for international e-commerce".

"It will also contribute to the development of Chongqing into the financial services centre of west China," he said in the statement.

The transaction volume of China's online payment market totalled 725.5 billion yuan (US$109.5 billion) in the first nine months of the year, boosted by the booming e-commerce market, according to Analysys International.

The value of online payments is expected to hit one trillion yuan for the full year, the Beijing-based research company said in a note.

PayPal, a subsidiary of US e-commerce giant eBay, has more than 84 million active users around the world and allows payment in 24 currencies.

Alipay, a unit of China's largest e-commerce company Alibaba Group, dominates the Chinese online payment market with a share of 50.5%, according to figures from Analysys.

Alibaba owns the country's dominant online auction site Taobao.com.

- AFP

SHAH ALAM: Embattled former Selangor menteri besar Khir Toyo has denied involvement in the alleged selling of PKNS land to Gapurna Sdn Bhd.

The Sungai Panjang assemblyman said his name was being “dragged in for no reason but to further tarnish his image, political career and the Barisan Nasional”.

Khir was comemnting on a recent FMT report which revealed that the Selangor government had awarded a contract to a previously unknown RM2 company to build nine blocks of high-rise buildings in Section 52, Petaling Jaya, on the site currently occupied by PKNS.

In response to the report, a local blogspot, Right2Write, wrote that on Sept 9, 2005, the state under Khir had signed a privatisation agreement with Puncak Wangi Sdn Bhd to relocate PKNS office in Lot 12 from Section 52, Petaling Jaya, to Subang.

According to the writer, the land where PKNS building sits today is identified as Lot 12, which has a total land area of 9.85 acres.

Sometime in 2006 while Selangor was still under Khir's administration, PKNS sold part of Lot 12 measuring eight acres to Gapurna leaving behind a small area of 1.85 acres for PKNS to build its headquarters.

However, there is no document available in the public domain to suggest the sale.

"During the time BN ruled Selangor, Gapurna suggested developing the PKNS lot for commercial purposes (nine blocks of high-rise buildings).

"The deal was agreed to at the time. Then BN lost the general election and Pakatan Rakyat took over Selangor.”

"So, it's very clear that BN did not sell the land to anyone," Khir said.

No comments from State Govt

Khir also denied that Puncak Wangi was his crony company.

"I do not know who this Mohd Azrin Mohd Barrier and Krushiah Ali Mohamed are.

"If it was true that Puncak Wangi was my crony company, then how can the Pakatan government award such a big contract to me? Is it realistic?" he asked.

He also did not deny rumours that a prominent PKR leader had shown keen interest in the project.

Nevertheless, he added, he was prepared to be investigated by the Malaysian Anti-Corruption Commission (MACC) on the matter.

Meanwhile, the state government and PKNS have refused to comment on the issue.

Last week, when FMT tried to get an official statement from the menteri besar's office, the standard reply was that Menteri Besar Khalid Ibrahim was abroad.

The menteri besar's office said that Khalid's political secretary Faekah Husin would issue a statement on the matter.

But todate nothing has been forthcoming from the state government.

Also read:

A case for Selcat: RM2 firm gets rich contract

KUCHING: Speculation is rife that DAP's Violet Yong will face off against a reputed cardiologist in the Pending constituency in the coming state election which technically should be held before June 2011.

Professor Dr Sim Kui Hian is rumoured to be Sarawak United People's Party's (SUPP) candidate to wrest Pending.

Said Yong: “I am ever ready to face him if I am going to be the candidate. No matter who is my opponent sent by SUPP or Barisan Nasional as a candidate, I will never take it lightly.

“I have been working very hard,” said petite Yong who defeated SUPP’s secretary-general Sim Kheng Hui in the 2006 state election with a majority of 4,372 votes.

Yong was asked to comment on the possibility that Kui Hian, a heart specialist, may contest against her in the seat of more than 30,000 voters.

She said that keen competition between the ruling BN and Pakatan Rakyat will benefit the people as they will have a choice.

“The BN government will listen to the plight of the people, and will pour more funds for development to win back the hearts and minds of the people.

Citing history, she said: “Like the people of Kenyalang Park, before 2006 the government did not allow land renewal until at least five years before their land is expired.

“But after DAP won, they are allowed to renew their land at any time. And they also reduce the premium. Another example is Sungai Apong which had only muddy drains in the past 15 to 20 years.

“After we won the Pending seat, the muddy drains become concrete drains,” she said, adding that “this is through the power of the people”.

"Once the government wants to win back the seat, more allocations and many friendly policies will come up.

"Look at the Rajah Court area: full-fledged development taking place there. All these are being carried out because they (BN) want to fish for votes,” she added.

No denial

Meanwhile, although Kui Hian has brushed aside speculation of his candidacy in Pending, he has not denied outright his entry into politics.

“Let us cross the bridge when we come to it,” he said when asked to comment on the speculation.

He said that for now, he wants to concentrate on his job at the newly created Sarawak General Hospital Heart Centre at Kota Samarahan, which starts operation in January next year.

Son of the late deputy chief minister Sim Kheng Hong, Kui Hian said: “I am very passionate about my work. I want to make Sarawak well-known throughout the world.

“I have been invited all over the world to give lectures to some of the top-notch medical centres. I was offered A$2 million a year to work in Australia, but I remain here, getting only a fraction of that salary.

“I am not just working for the money, but for our people, so that there will be more local medical doctors who are qualified and of world standard,” he said.

Kui Hian is also a professor at the Faculty of Medicine and Health Sciences at Unimas.

High Court senior assistant registrar Anisah Normah Muhammad Nor fixed the date in chambers when the case came up for case management. Counsel Wan Anuar Shaddat Mohamed Amin appeared for Anwar while Mohd Zaharudeen Harun is representing Chandra.

On March 6, 2008, Anwar sued Chandra over his alleged defamatory remarks at a forum at Menara Star in Petaling Jaya on March 3, 2008, which were subsequently published in newspapers.

He claimed that Chandra spoke the offending words to disparage him in both his private and official capacities, including as former deputy prime minister and former finance minister and alleged that the defamatory comments, among other things, meant that he promoted and incited racial hatred among the races in Malaysia.

In his statement of defence filed on May 16, 2008, Chandra denied having uttered malicious, false or defamatory comments about Anwar, which the opposition leader claimed were published in two local English newspapers on March 5, 2008.

Alternatively, he claimed that if the words were defamatory, which he denied, then they were published on an occasion of qualified privilege without malice.

- Bernama

KOTA KINABALU: The controversy surrounding the status of children of mixed parentage has resulted in an upsurge of parents and their offspring heading to Commissioners of Oath to attest that they are “Sino-Kadazans” and not “Sino-natives”.

Sabah DAP said that it had learnt of this following the launch of the Sabah Sino-Native Association (SSNA).

“This controversy has prompted a large number of parents and children to go to the National Registration Department (NRD) to rectify their race," said party secretary Dr Edwin Bosi.

“I learnt from some Commissioners of Oath that children whose mothers are Sino-Kadazan as stated in the birth certificates are now changing their race from Chinese to Sino-Kadazan.

“The most unfortunate thing to happen is that NRD is changing their race to Sino-native,” he said.

"DAP Sabah wants to remind the government and NRD that Sino-native is not a race. It is just a grouping. The policy must be changed to reflect the true identity of these children. Their mothers are Sino-Kadazan so they must be registered as Sino-Kadazan, too.

“Johnny (Mositun, PBS information chief) has to remember that PBS is a Barisan Nasional component party. The question is, why can’t PBS, the second most powerful BN party in Sabah, get Umno and the BN government to lift the freeze immediately?

"PBS as a BN component party must request the government to stop using Sino-native as a race in the birth certificates. SSNA should be very concerned about this development.

“This is a basic matter (lifting the freeze on the issuance of the native certificate). It does not need too much thinking or planning.

"The government can just issue a statement that the freeze is lifted and let the Native Court handle all matters pertaining to native affairs, " Bosi said.

He added that those who were unhappy with someone with a native certificate “should let the Native Court verify it”.

He said that Sabah DAP also regretted the negative statement by Mositun, who is also Deputy State Legislative Assembly Speaker, over Sabah DAP chairman Jimmy Wong’s wish to join the newly formed SSNA.

Downplaying Native Court

Bosi also said that installing PBS Inanam assemblyman Johnny Goh as SSNA president was a bid by PBS to divide and rule its own community.

He is convinced that Goh, as a PBS member, would have to bow to the wishes of his political masters in Umno rather than work for the betterment of Sino-natives.

“It may now be difficult for Wong to approach SSNA for assistance," he said of his boss who has been given notice by the state government that his status as a Sino-native would be withdrawn.

Bosi lashed out at Mositun for downplaying the role of the the Native Court which had declared Wong a “native” and issued him a native certificate.

He said the deputy speaker had the power to prevent the Umno Sekong and Sulaman representatives from asking the Native Court to revoke Wong’s native certificate.

"Mositun, being the deputy speaker, could have stopped the motion because it was not relevant as it was a budget sitting. Secondly, Mositun could have stopped it because in his own words, it was instigating inter-communal suspicion and enmity.

“I have many people calling me to continue to question the issue so that the freeze on the issuance of the native certificate is lifted immediately.”

Bosi stressed that Sabah DAP has full confidence in Native Court.

He said he had raised the matter of Sabahans not being accorded “native” status at the Pakatan Rakyat convention on Dec 19 in Penang due to the gravity of the issue.

He said that Pakatan would resolve the matter once and for all if given a chance to rule.

“Once the people have decided to change the BN government, Pakatan will no doubt resolve this problem. I can assure Mositun that Pakatan will deliver."

KOTA BELUD: A prominent local lawyer here has urged Sabahans and Sarawakians not to rely on peninsular leaders to fight for their rights.

"Sabahans and Sarawakians should regroup in their respective state-based political parties and ally themselves to whichever groups that accommodate their demands," said Peter Marajin, who stood as an independent candidate in the 2008 election and garnered over 1,700 votes.

"We in Sabah and Sarawak should not rely on them to support our wishes and demands even if those are our state rights.

"They will fight for their own rights. We cannot expect those in peninsula to fight for us in Sabah and Sarawak," he told a group of leaders at Mayang Sari Hall here yesterday. He was speaking on the current and future political scenario in Malaysia and also on the newly-formed United Borneo Front (UBF).

Though his bid to represent the Kadamaian state constituency in the State Legislative Assembly ended in failure, Marajin's respectable showing has convinced him that voters in the state want to control their own future.

He said that past and current records have shown that when it came to the crux of the matter – crucial demands of Sabah and Sarawak – virtually all peninsular leaders were are not reliable for support.

Marajin, 56, who has his own legal firm in Kota Kinabalu, said his argument was based on the failure of federal leaders over the last 47 years to fully respect Sabahans and comprehend the plight of the people in the two states.

No respect for Sabah, Sarawak

Marajin said the result of this lack of comprehension and respect has made Sabah the poorest state in Malaysia today.

However, he believes there is still a window of opportunity to correct the wrongs done through the impending 13th general election.

"There are 222 parliamentary seats in Malaysia: 57 are in Sabah and Sarawak, including one in Labuan. That will leave Pakatan Rakyat and Barisan Nasional (BN) fighting for 165 seats in the peninsula.

"If Pakatan retains its strength in 83 seats, that will leave us with a hung Parliament with BN having only 82 seats. The 57 seats from Sabah and Sarawak will be crucial in determining who will rule the country.

"It is high time that we in Sabah and Sarawak had our own state parties really fighting for our rights to represent us at the federal level. Armed with our legitimate demands, we can seek a written consent from a peninsular ally (Pakatan or BN) to accede to the list of our demands.

"We must not rely on verbal agreements anymore," he said.

Marajin, the former PKR member who is now a supreme council member of the Sabah Progressive Party (SAPP), said that voters in Sabah and Sarawak must realise that they have the power to make or break the government

He added that the existing state parties in BN or Pakatan have already compromised on state rights.

"If we fall to peninsular leaders' sweet talk and verbal promises in this general election, our miseries will only be perpetuated... we will remain the poorest in the country," he said.

YEAR-END SPECIAL KUALA LUMPUR: It will be a high-strung first three months for 2011 as the country anxiously awaits the possibility of early elections, the most important yet for the two-year-old Najib administration.

There is mounting speculation, reinforced by recent political developments, that Prime Minister Najib Tun Razak will hold the 13th general election in the first quarter of next year.

This will be his first as premier since taking over from his predecessor, Abdullah Ahmad Badawi, in April 2009, after the latter led Barisan Nasional (BN) to one of its worst ever electoral performance that subsequently led to his political demise.

Najib knew of the arduous task at hand. This election, should he press the button, will be a referendum on his administration. It will be the yardstick to measure the weary and cynical electorate, if they are buying the stigmatised product that the country's sixth premier is tirelessly trying to sell – reform.

The prime minister wasted no time in boasting several reform measures: the six National Key Results Areas (NKRAs), the Government Transformation Programme (GTP), the New Economic Model (NEM), the 10th Malaysia Plan (10MP) and the Economic Transformation Programme (ETP).

All this he claimed will help the country achieve a "high income" and "developed" nation status in just nine years, targeting an optimistic annual growth of 6% through a mixture of efforts to boost domestic market and bolster the currently low private sector participation.

More feel-good announcements

Observers believe that Najib is embarking on a tried and tested formula – put money in the voters' pockets and they will adore you – to catch up with straying support and the recent increase in approval rating seems to indicate that his method is gaining traction.

And to show that he is not all talk, close to a dozen private investment-driven entry point projects under the ETP have kickstarted and expect to see more announcements in the first three months as Najib would want to create a "feel-good factor" in the run-up to the 13th national polls.

But while voters are leaning towards Najib, the business community remains sceptical with major players scoffing at the NEM which they say lacks depth to stimulate enthusiastic reaction from the private sector.

Najib's teetering on key business-friendly policies like the reversed decision to implement the controversial goods and services tax (GST) and the snail-paced move to slash its hefty subsidy programme have planted seeds of doubts in the business community about Najib's will to overhaul the economy.

The government claims that GST will increase its revenue to RM13 billion in the first year of implementation. Observers say the widened tax base is needed to replenish the drying state coffers and stop its dependency on oil money.

Petronas is the government's main income earner, with almost 30% of its state revenues derived from the one of the few Malaysian companies to be listed in Forbes Fortune 500.

More subsidy cuts in the pipeline

But Najib has been on the defensive over this, doing his best to deflect constant attacks from rival Pakatan Rakyat, which accused his administration of bleeding Petronas to death in a bid to compensate the widespread and costly corruption.

Graft has been the main factor behind the drop in government income, leaders from the opposition bloc claim, and should this be addressed, revenues can improve and there won't be a need to implement policies that they allege would burden the majority like the GST or subsidy cuts.

Najib would want to quash the negative publicity plaguing his reform efforts and is likely to escalate his charm offensive but would first need to contain the potential voter backlash by calling for early polls.

A fresh mandate means he has five more years to buttress his reform measures and carry on with his unpopular but much-needed initiatives to put the economy back on its track.

Expect the steamrolling of the GST bill which has already been tabled in Parliament should BN triumph in the early polls. Also in the pipeline is the increase in fuel and sugar prices as Najib seeks to slash subsidies amid efforts to tackle the budget deficit.

Tomorrow: Pakatan's fate, Anwar's conviction, and the third force

YEAR-END SPECIAL KUALA LUMPUR: The future is getting bleaker for city bus operators who have seen only steady losses and no governmental support over the years, according to the Pan Malaysia Bus Operators Association (PMBOA).

“We don't know the government's stand. But we have told them (the government) that we are a sunset industry. It is going down, down, down," said PMBOA vice-president Razali Endun.

Mulling over the state of the industry, Razali said that back in 2006, former prime minister Abdullah Ahmad Badawi had said that the RM4.4 billion which the government had derived from the reduction in oil subsidies would be used to improve Malaysia's public transport.

But four years since, not “a single sen” has filtered down.

"We did not see one sen! Not a single sen! We are still serving the routes but we are losing money.

“We don't know when we are going to close down. That's why we want the government to buy us out as soon as possible... then at least we can sell burgers, or rojak or even ice-cream... at least it's something,” said a bitter Razali.

He said that there was little aid from the government when it came to allocations and it was impossible for bus companies to apply for loans as many of them were already in the red.

Unlike PMBOA, government-owned RapidKL enjoyed full subsidies for its operations.

“I told them (the government) that if you want us to work together with Rapid, you should not give them any subsidies. Why not give the subsidies to us?” he told FMT recently.

Razali also complained that instead of taking on newer routes, RapidKL went for the same routes operated by existing bus companies, resulting in city bus operators losing revenue.

Unfair advantage

Adding insult to injury, Razali said that the Commercial Vehicle Licensing Board (CVLB) freely issued route permits to RapidKL without checking if they would clash with the schedules of the existing route operators.

“We don't know what the rationale is for giving (RapidKL) permits for the same routes.

“When I asked them (the government) to give me one reason why (they thought it was a good idea) they couldn't answer. They just kept quiet,” said Razali.

Because of the numerous setbacks, Razali said many of PMBOA members had to drop less profitable routes (or better known as “social routes”) to villages and Federal Land Development Authority (Felda) estates.

“You cannot expect to get profits when you take your buses there (on social routes). We may go there four times in a day (but it is not profitable),” he told FMT.

He said more often than not, these “social routes” were acts of charity by the bus companies because they were not self-sustaining and the costs of servicing such areas were in fact offsetted by the more lucrative runs.

"Even if we're losing money, we still have the lucrative routes. If we make losses (on the social routes), never mind. We want to give the services there,” he said.

But rising operation costs and a thoughtless CVLB have put an end to services to some routes, said Razali.

“Now operational costs are increasing, and the CVLB is giving permits for our lucrative routes.

"When you give many other companies permits on the same road, you cannot get the profits.”

“So, we have to tarik (pull) the social route,” Razali said.

Rising costs, government controls

Echoing Razali's views is Konsortium Transnasional Berhad's (KTB) executive director Tengku Hasmadi Tengku Hashim.

According to Hasmadi, KTB which operates the “Cityliner” brand buses lost more than RM14.5 million in 2009.

“We have to provide the service, but we cannot do it profitably. We are losing money... to the point that some operators are selling their land and their offices. We (KTB) ourselves are selling land to survive,” he said.

KTB, he said, had 1,500 buses, 800 of which serviced city routes within Kelantan, central Pahang, most of Negri Sembilan, Seberang Perai, parts of Pahang, Kedah and Selangor.

But profits from KTB's express buses (operated under brands like Transnasional, Nice and Plusliner) can no longer support CityLiner's losses.

Much of CityLiner's losses, Hasmadi said, were due to its ever-expanding operational bills.

"Doors, air-conditioning and vandalism-prone seats have to be inspected regularly. Tyres which cost RM1,000 each have to be changed every month. Rising costs have not helped matters," Hasmadi said.

Citing inflation, Hasmadi said in 2004, the company bought bus batteries at RM250 each. Four years later, the same batteries cost RM680 each.

Then there is the cost of insurance.

"Insurance is most expensive for city buses because it covers the number of people you can carry (at one time). Insurance has gone up by 200% in recent years.

"In addition, city buses only receive partial diesel subsidies.

"Most buses need 3,000 litres every month but the government only subsidises 1,300 litres of diesel.

“After 1,300 litres, I have to pay the public price,” he said, adding that replacing ageing fleets was also out of the question, with brand-new buses costing more than RM350,000 each.

Lowest bus fares in the region

While cost of all else has sky-rocketed, bus fares, controlled by the government, have only increased by 30% in the past two years.

Inflation and the “unfair advantage” given to RapidKL have has only added to the burden of existing bus companies, plying these routes.

Tottering under such “senseless” weight, Hasmadi said that it was impossible for bus companies to survive much less maintain “social routes” without profits.

“How can you have a social obligation until you have to sell your own land, your own building?

"If you are profitable, you should use some of your profit and do some social obligation.

“How can a private bus company continue to provide a good looking, clean bus, crisp uniform, safety shoes, sparkling clean glass, and tyres that are round, if the company doesn't have enough to survive?”

He said that the public did not understand that there were many hidden costs behind the running of buses. It also irked him that many Malaysians demanded exceptional service for cheap prices.

“The fare is so low. We have one of the lowest fares in the region. But Malaysians want a five-star bus at a one-star rate,” he said.

According to Hasmadi, who helms one of the largest bus companies in the country, if the situation got any worse, KTS will be forced to let go of its CityLiners, and concentrate only on its express buses.

"If my kind (bus operators) were to leave, Malaysians will suffer.

“If I decide enough is enough and stop tomorrow, what would happen?

"If I stop operations tomorrow, the public will suffer... in Kelantan, can a nurse go to a hospital? Can people go to work? Can they operate a supermarket? They cannot,” Hasmadi said.

Tomorrow: No masterplan for public transport, only red tape

YEAR-END SPECIAL KUALA LUMPUR: There was a time when Mak Soon Peng's most vivid memory of Central Market, or popularly referred to as CM, was being robbed at knifepoint in the area. His mugger snatched a grand total of RM20, but then relented and returned RM5 for Mak's bus fare home.

The then 20-something graphic designer vowed never to set foot back there again. But fate had other plans.

Today 46-year-old Mak is the senior manager of advertising and promotion of Central Market Management. And CM is wearing a different face.

CM was initially a gambling den belonging to the third Capitan of KL, Yap Ah Loy, and the first resident-general of the Federated Malay States, Frank Swettenham, described it as a “very insecure shed” and ordered it rebuilt.

Yap Ah Loy completed the new structure in 1883 with brick pillars and a galvanised iron roof. Five years later, the building became KL's open wet market for the city's citizens and tin miners.

Due to the market's rapid expansion, a permanent structure was built which later underwent four expansions until 1933. By then it boasted features of art deco style buildings and was dubbed the city's largest room.

At the end of the 1970s, the Malaysian Heritage Society took the building under its wing and splurged RM9 million on upgrading it to the current facade.

When Mak left his hometown of Sungai Petani for the greener pastures of KL, he sought out the many artist haunts in the hope of establishing connections that would launch his career. One of those haunts was CM.

“It was a scary place back then,” he grimaced. “But it was a favourite hangout for art students as inspiration was in abundance. They would sit on the walkways and sketch.”

But the daytime muse became a night time menace that inspired a different group to prowl its surroundings.

Bong with a vision

Under the dimness of dirt-stained streetlights, rival gangs would congregate to initiate drunken brawls or prey on unsuspecting pedestrians. Illegal immigrants thronged the area and illicit romances flourished in the shadows.

“The shops closed at 5pm sharp,” Mak recalled. “Nothing about CM was clean, safe or healthy. People had a terrible impression of it. They avoided it.”

That was until Bernard Bong stepped in with a vision.

As managing director, he envisioned CM as a thriving arts and craft hub that would one day be worthy of international recognition. Not only did he have a wildly ambitious dream, but he also had the gumption to stand by it.

The initial stage of the reinvention process didn't go down well with the shop owners. Bong had decided to demolish the sprawling shop lots to make way for smaller ones and kiosks that would offer a wider variety of attractions.

As the demolition began, many of the nervous retailers caved in to fears that CM was doomed and threw in the towel. An undaunted Bong refused to allow their departures to throw him off course.

By the time Mak came on board in 2006, the project was more than halfway towards completion.

“I was blown away by Bong's vision and creativity!” he exclaimed. “The place didn't look anything like how I remembered it to be.”

“What's really impressive is that the whole concept was Bong's idea and the architect merely followed his lead. Every single detail has been carefully thought of and executed down to the smallest detail.”

New strategy

Mak pointed to the brightly coloured tiles adorning the entrance, the staircases and the floor. He explained that each tile was one of a kind, designed by CM and hand painted in Bali. That aside, the management had kept the décor as locally flavoured as possible.

“All our retailers must be Malaysians selling local products,” Mak said. “Even our eateries must be a local brand hence why we have Old Town, King's Confectionery and Secret Recipe. KFC wanted to open an outlet here but Bong turned it down.”

“And have you seen our restrooms? The one upstairs has a wayang kulit theme and the one downstairs has a kampung theme. Visitors get a real kick out of it!”

But herein also lies one of CM's biggest challenges. According to Mak, the cottage industry barely flickered with excitement at the frantic demand for locally made products.

“Our tenants would place large orders with the woodcarvers or basket weavers but they would take four months to produce a single carving,” he claimed. “It was very disappointing. So some of our tenants now personally travel to East Malaysia to buy their products.”

Part of Bong's new strategy included the zoning concept aimed at directing tourists to their particular areas of interest which had indirectly boosted sales. The ground floor is divided into Chinese, Malay and Indian themed streets while the upper floor houses the Batik Emporium.

“CM has about 200 shops and 100 kiosks now,” Mak said. “And the new look has generated return visits from both locals and foreigners. They say it's like a treasure hunt because they never know what they will find while poking around here.”

Security has also been drastically beefed up with the presence of 30 security guards, both plainclothes and in uniform.

“We have 200 CCTVs that are in full working condition,” Mak said proudly. “Considering that security was such a huge concern previously, we're sparing no expense in ensuring that it is top notch now.”

Princely profit

The owner of Zakir Batik, Razakir Abdul Rahman, expressed great relief over the make-over. The 43-year-old businessman, who has been operating in CM for the past 23 years, revealed that the number of tourists had spiked since CM became a “safe haven”.

“I've seen customers return after 15 or even 20 years to buy sarongs, pareos and scarves from me,” he said. “They tell me that they equate CM with culture and heritage, and therefore wouldn't buy these products from shopping malls.”

“And now they're more comfortable taking their time shopping instead of rushing to be done before sundown. For small businesses like mine, an extra half-an-hour can mean the difference between covering my overheads and a princely profit.”

Callie Wong is another CM veteran. Her father opened a Kodak booth 25 years ago and when he passed way six years later, she unhesitatingly stepped into his shoes.

“I've always been in the tourism line so this fit me perfect,” she laughed. “And I spent so much time in my father's shop that CM is like a second home to me. It's a safe place now which is good because there is so much history here. Not just of the building but of the people in it too.”

Then there is the Annexe. A cineplex in its past life, it is located behind the main building and is another stroke of Bong's brilliance.

“Bong wanted to take the artists off the sidewalks and give them a proper place to showcase their work,” Mak explained. “And in doing that he decided to separate art from culture and craft. He thought it would make for a more interesting experience.”

The Annexe took off almost instantly. Now it houses art galleries, theatre and music performance spaces and arts and craft shops.

Vibrant pattern

Leonard Yiu, the owner of Art House Gallery, couldn't have asked for more. He owns the only gallery museum in the country with a comprehensive collection of genuine tribal masks from different ethnic groups in East Malaysia.

“It took me only 20 years to collect,” he shrugged. “This gallery is two years old. I don't get a stream of customers but I have a regular clientele. And I get to show off my collection in a space with the type of people who will appreciate it. This is an invaluable plus point.”

Rosli Yusof, the director of conservation and archeology at the Department of Heritage, has assured that CM is on a list of proposed gazetted heritage sites.

He added, however, that its status is still awaiting approval from the Kuala Lumpur City Hall (DBKL) and the Minister of Federal Territories and Urban Wellbeing.

“This will take some time but we are determined to preserve the old inner city of KL and this includes CM. But our approach to conservation of heritage sites differs from that of DBKL.

“DBKL views conservation as an extension of tourism. We go by the Unesco guidelines and focus on the heritage value. We strive not just to preserve the facade but also the fabric of the city.”

And CM is, without a doubt, a solid vibrant pattern in that fabric.

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The art of being a tourist

NEW YORK: Auction houses sold more than US$350 million (RM1.1 billion) worth of wine worldwide in 2010, an amount roughly in line with or exceeding their pre-recession levels of 2007.

And all of them credited their sales in Hong Kong or Asian buyers for the spike in sales figures.

Sales in Asia were "particularly robust" said John Kapon, president and auction director of Acker Merrall & Condit, which reported total sales of US$98.5 million for 2010.

"Hong Kong has now overtaken New York as the world's largest wine auction centre," Kapon said.

Acker Merrall was the latest house to report following those of Sotheby's, which auctioned off more than US$88 million worth of fine wines and Christie's which said it had sold US$71 million.

Christie's head of wine sales in North America, Charles Curtis, is surrendering that title to take over the auction house's operations in Hong Kong beginning in January.

"In Asia one must have a nuanced view of the market. Taiwan, Hong Kong and Singapore are relatively mature buyers. But in mainland China, there are the characteristics of a newer market," he explained.

“In newer markets, they tend to focus on the topline stuff first," Curtis said, which explains why sales of premier cru Bordeaux, such as Lafite-Rothschild and Haut Brion, have skyrocketed.

Serena Sutcliffe, head of Sotheby's International Wine Department, echoed Curtis' observation, noting that many of Asia's buyers "are starting from scratch”.

"They're drawn to the Western lifestyle. They're building big houses and want a cellar. It's an important part of business and social life."

Christie's wines sales were right around those of 2007 before the global recession took hold.

Acker Merrall's Kapon said his company's Asia sales of US$63.5 million represented a 206% growth over 2009. The remaining US$28 million sold in New York represented a 55% increase from 2009.

Sotheby's total of US$88 million represented twice the amount of wine it sold in 2009.

Chicago-based Hart Davis Hart reported its yearly wine auction sales totalled US$39.2 million, a 63% increase over 2009 and New York-based Zachy's Wine Auctions, which also holds sales in Hong Kong, said it sold US$56.6 million of wines.

Kapon expected that 2011 would be a banner year for sales overall and in Asia in particular and Curtis predicted "2011 will go through the roof" for auction prices of the top growths and big names.

- Reuters

HONG KONG: Asian stock markets were mostly lower today as traders returned to the Hong Kong bourse for the first time since China raised interest rates on Christmas Day.

Tokyo ended lower on the back of a strengthening yen but investors were broadly ignoring a batch of economic data showing Japanese consumer prices have been slipping every month for almost two years.

Hong Kong shed 0.93%, or 212.07 points, to end at 22,621.73 as the market digested Beijing's decision on Saturday to raise rates for the second time since October and its hints that further rises could come.

The central People's Bank of China hiked its one-year lending and deposit rates by 25 basis points each as it struggles to curb borrowing, rein in property prices and tame inflation.

Investors are concerned that a tighter monetary policy by Beijing will restrict growth, which could have a knock-on effect for many other countries that rely on China's huge appetite to boost their own economies.

Shanghai dropped 1.74%, or 48.41 points, to 2,732.99 after giving up 1.90% yesterday.

"The PBoC's emphasis again on controlling prices will intensify tightening concerns and are hitting the already-weak market sentiment, especially following the weekend interest rate hike," said Guotai Junan Securities analyst Zhang Xin.

Tokyo closed 0.61%, or 63.36 points, lower at 10,292.63 as the stronger yen led investors to take profits after the previous day's 0.75% gain.

Exporters led the decline as the dollar edged down to to 82.44 yen from 82.78 yen in late New York trade yesterday.

"The selling pressure is not that strong, but there is a lack of buyers," Okasan Securities strategist Hideyuki Ishiguro told Dow Jones Newswires.

One-sided rise

However, Japan's Finance Minister Yoshihiko Noda warned the government was ready to step into the forex markets for a second time in three months to halt the yen's rise, which he described as one-sided.

The government intervened in the market in September as the yen surged to a 15-year high against the greenback.

Market-watchers said dealers were not taking too much from mixed macro-economic data released in the morning showing the core consumer price index dropped 0.5 percent in November from a year ago.

The figure represents the 21st straight month of falls, as deflation continues to plague the Asian economic giant.

However other data showed industrial output rose 1.0% in November from the previous month, rebounding after five straight months of declines.

And unemployment was unchanged at 5.1% last month.

Most investors were looking to the release of the US consumer confidence index later in the day.

Seoul gained 0.55%, or 11.13 points, to 2,033.32.

Sydney and Wellington were closed for bank holidays.

The euro rose to 1.3235 dollars in Tokyo morning trade from 1.3161 dollars in New York late yesterday. The European single currency was also up at 109.13 yen from 109.00 yen.

On oil markets New York's main contract, light sweet crude for delivery in February, dropped 4 US cents to US$90.96 per barrel and Brent North Sea crude for February was down 11 US cents at US$93.74.

Gold closed at 1,390.00-1,391.00 US dollars an ounce in Hong Kong, up from Friday's close of 1,383.50-1,384.50 dollars.

- AFP

The FTSE Bursa Malaysia KLCI (FBM KLCI) which opened 0.74 of a point lower at 1,510.98, moved between 1,509.55 and 1,525.99 before ending 5.72 points higher at 1,517.44.

The top gainers were mostly plantation stocks such as Kuala Lumpur Kepong which jumped 44 sen to RM22.64, Hap Seng Consolidated which rose 36 sen to RM6.59 and PPB Group which increased 34 sen to RM17.10.

The Plantation Index advanced 39.97 points to 8,032.98.

The Finance Index increased 34.49 points to 13,840.5 with Public Bank surging 16 sen to RM12.96, AMMB Holdings adding four sen to RM6.99 and Hong Leong Financial rising nine sen to RM8.98.

The Industrial Index rose 13.30 points to 2,823.97.

The FBM Emas Index went up 36.561 points to 10,358.45, the FBM 70 Index was 33.59 points higher at 10,878.5 and the FBM Ace Index improved 38.78 points to 4,289.9.

Advancers led decliners by 390 to 370 while 294 counters were unchanged, 338 untraded and 37 others suspended.

Total volume improved to 822.881 million units worth RM1.22 billion from yesterday's closing of 773.206 million shares valued at RM868.925 million.

On the Main Market, volume rose to 617.653 million shares worth RM1.178 billion from yesterday's close of 530.432 million units valued at RM818.831 million.

Warrants, however, slipped to 95.63 million units valued at RM18.787 million from 135.716 million shares worth RM24.727 million previously.

Turnover on the ACE Market rose to 93.066 million shares valued at RM17.997 million from Monday's close of 84.682 million worth RM20.632 million.

Among active stocks, Tejari Technologies eased half a sen to 19.5 sen, Integrated Rubber Corp-WA added 1.5 sen to 14 sen while Hubline was unchanged at 21 sen.

Among heavyweights, CIMB declined two sen to RM8.55 while Maybank, Petronas Chemicals and Tenaga were unchanged at RM8.49, RM5.53 and RM8.36 respectively.

Genting gained 18 sen to RM10.98 and Sime Darby rose four sen to RM8.77.

Consumer products accounted for 31.184 million shares traded on the Main Market, industrial products 146.412 million, construction 39.701 million, trade and services 241.526 million, technology 11.008 million, infrastructure 15.931 million, finance 35.162 million, hotels 3.058 million, properties 64.588 million, plantations 20.823 million, mining 468,200, REITs 7.763 million and closed/fund 31,000.

- Bernama

The US Justice Department and Securities and Exchange Commission reached the settlement with the Paris-based firm, according to a statement yesterday.

The SEC said Alcatel's subsidiaries "used consultants who performed little or no legitimate work to funnel more than US$8 million in bribes to government officials in order to obtain or retain lucrative telecommunications contracts and other contracts".

Alcatel agreed to pay more than US$45 million to settle the SEC's charges, and pay an additional US$92 million to settle criminal charges with the Department of Justice.

The Justice Department said the company violated the Foreign Corrupt Practices Act (FCPA) by Alcatel prior to its 2006 merger with US-based Lucent Technologies.

Alcatel-Lucent admitted that the company earned some US$48.1 million in profits as a result of the actions, officials said.

"Alcatel and its subsidiaries failed to detect or investigate numerous red flags suggesting their employees were directing sham consultants to provide gifts and payments to foreign government officials to illegally win business," said Robert Khuzami, director of the SEC's division of enforcement.

"Alcatel's bribery scheme was the product of a lax corporate control environment at the company."

According to the SEC complaint, Alcatel's bribes went to government officials in Costa Rica, Honduras, Malaysia, and Taiwan between December 2001 and June 2006.

US officials said the bribery payments were undocumented or improperly recorded as consulting fees in the books of Alcatel's subsidiaries and that head of units in the regions "either knew or were severely reckless in not knowing about the misconduct."

The case stemmed from an investigation by US agencies along with those rom Costa Rica and France, US officials said.

- AFP

TOKYO: Japan's consumer prices slid last month as deflation kept a grip on the ailing economy, data showed today, but an uptick in factory output provided a glimmer of hope.

The figures came as Japan's stuttering recovery is hobbled by a strong yen, which hurts the key export sector, and after Tokyo last week forecast growth would slow to a real 1.5% next year from 3.1% this year.

Finance Minister Yoshihiko Noda described the yen's recent rise – the unit was trading at 82.44 against the dollar in the afternoon – as "one-sided" and signalled Japan is ready to step into forex markets again.

"There is no change in our stance that we would take resolute steps when we see excessive volatility," he said, following a massive yen-selling intervention in September, Japan's first in six years.

Japan, long hampered by weak domestic demand, saw its core consumer price index fall for a 21st straight month in November, dropping 0.5% from a year ago, although slightly less than the 0.6% experts had predicted.

The stubborn price drops, which hurt companies and cost jobs, indicate Japan will find it hard to beat deflation alone, given factors such as its shrinking population, said HSBC Securities chief economist Seiji Shiraishi.

"Deflation may ease if the global economic conditions prove strong, (and) help Japan's external demand," which could help boost Japanese exports and eventually rekindle domestic demand, he told Dow Jones Newswires.

Japan has long conceded that its battle against deflation has been difficult. Although the government predicts the CPI will stop falling in mid-2011, it said this would not mean the defeat of chronic deflation.

Stimulus programmes

Consumers' sentiment also remained weak, government data showed. Household spending in November fell 0.4%, against economists' expectations of a 0.2% gain, the internal affairs ministry said.

Despite the long-term woes, there was a more immediate ray of hope in the first rise in industrial output for half a year, with factory production in November up 1.0% from the previous month.

The statistic matched market expectations and reflected a pickup in auto production, which has been supported by the government's just-ended incentive programme for purchases of "green cars" such as Toyota's hybrid Prius.

Output in electronics parts, mobile telephones and machinery parts also helped lift overall production, much of it similarly boosted by various public assistance programmes, the industry ministry said.

The ministry also said it expected factory production to continue rising – by 3.4% month on month in December and 3.7% in January – with steel products and auto parts seen to go up in tandem with auto production.

HSBC's Shiraishi said the ministry's forecasts seemed "bit too strong" but served as a "positive sign" going forward.

Satoru Osanai, an economist at Daiwa Institute of Research, also said the forecast seemed a little optimistic, but added that it may be achieved if foreign economies improve significantly.

But Osanai cautioned that the fading effects of stimulus programmes in China – Japan's top trade partner – posed worries for exports.

In separate data today, unemployment remained at 5.1% in November, unchanged from the previous month and matching market expectations.

Total job losses for Japanese non-regular workers are expected to top 300,000 for the period from October 2008, at the start of the global economic slowdown, to next March, according to other government data.

"Employment and unemployment conditions are gradually improving, but they are still very severe," Labour Minister Ritsuo Hosokawa told reporters.

- AFP