Parliament passed the Budget 2016 by voice vote

Budget 2016 approved at the committee by voice vote today, as well as secure the position of Datuk Seri Najib Abdul Razak as prime minister. The opposition, which are only about 20 members in the House this evening, do not ask for a block vote.

This is their last chance to show that Najib does not have the support of the Council to vote against the budget. With only two days left Parliament, the possibility of no-confidence motion brought by the Leader of the Opposition, Datin Seri Dr Wan Azizah Wan Ismail, who is at number 39 on the order paper, will not be debated in the House of Commons.

It unless Speaker Tan Sri Speaker Pandikar Amin Mulia was elevated higher the motion in the order paper.Efforts earlier opposition to vote against the budget during the policy level, failed when 128 votes in favor and 74 votes rejected.

The opposition argues that Malaysia would face a financial crisis if Najib did not retreat. Opposition MPs citing the depreciation of the ringgit, an increase in public debt and financial problems 1MDB as part of the reason why He should step down.

He, however, refused to resign, and said he would not inflicted by an "undemocratic". Najib, who is also finance minister, presents RM267.2 billion budget for next year.

Russian sanctions against Turkey

           Russia and Turkey have a strategic and commercial trade deals in place which could be at risk as the diplomatic row over Turkey's downing of a Russian warplane continues. Geopolitical tensions between Russia and NATO member Turkey have risen this week after a Russian SU-24 warplane was shot down by a Turkish F-16 fighter jet on Tuesday. Turkey claim the jet was in Turkish airspace and ignored warnings to leave, Russia denies this.

            Russian President, Vladimir Putin on Saturday signed a decree to adopt a series of economic sanctions against Turkey in response to the actions of the Moscow shoot down warplanes in the Syrian border. According to a decree signed by Putin, the restrictions implemented to ensure the security of the country and the people of Syria in addition to setting restrictions on certain flights between the two countries.     

      Besides that, based on the restrictions in force on January 1, the Russian company may not take the people of Turkey as an employee and import restrictions imposed on certain types of Turkish products. Putin also ordered the government to publish a list of goods and services that are not restricted to ensure that the measures are having an impact on the Turkish economy.         

        This economic sanctions could be significant for both countries, Turkey is Russia's second most important trading partner after Germany and, if Russia goes ahead and cuts economic ties, both countries will feel the effects.            

Malaysia-China ties at best level in history

Relations between China and Malaysia are now at the highest level in history, Prime Minister Najib Abdul Razak said.

This was agreed by Chinese President Xi Jinping during a meeting of the two leaders in Manila, the Philippines, yesterday.

"Xi says China will give top priority to relations with Malaysia, as well as to continue to give its support to efforts to enhance strategic relations between both countries," said Najib in his latest posting in his blog last night.

Apart from that, during the meeting, Xi also explained on the economic reformation being implemented in China, Najib said.

"Among the important things he touched was on China's intention to double the economic size and per capita income by 2020 based on the 2010 benchmark," he said.

"Although the rate of economic growth in China is slower, but he is confident of China achieving the seven percent rate this year,' he added.

The prime minister said Xi Jinping also expressed appreciation to Malaysia as Asean chair and wanted to also be involved in making Asean an economic community.

"The Chinese president wants to see the Asean Community to be finalised soon. Besides the Asean Community, China also shows high interest in the bid for the Malaysia-Singapore High-Speed Train Project," Najib added.

On the South China Sea issue, Najib said China appreciated the "silent diplomacy" stand taken by Malaysia.

"Our priority is to not create tension, but to emphasize the importance of maintaining peace and harmony," said Najib.

JAPANESE ECONOMIC RECESSION

              Current News was informed that Bank Negara Malaysia (BNM) has begun to take a more holistic approach regarding monetary policy when they see the situation prevailing in the country of rising sun.

              Nowadays, Japan had experienced quite critical period when the economy entered a recession, that would indeed its impact to Malaysia which is one of the largest trading partner for Malaysia besides Thailand, the United States, China and Singapore.

              Based on the review of News from Reuters news reports indicated that many economic expert were surprised when the Japanese economy in recession since the third quarter of 2014, causing the Japanese government has suspended the basis of 8 per cent rise in sales tax that was introduced by Prime Minister Shinzu Abe before.

               Other countries that export a lot of products and goods for use in Japan began to feel the effect when the company such as Coach, Harley Davidson, Tiffany and more others companies from the US began to feel the effect from that. This is just one example only.

               The effect of the fall of the Japanese economy is not a small issue. The effect is very large to the whole world. Furthermore, the status of the Japanese economy is the third largest in the world.
Latest, Japan has given warning to the United States, European countries and other countries involved in the Japanese economy, including to Malaysia where Japanese export trade with major trading partners that they will be affected due to uncertainties and unbalance of their economies at this point.

              The value of Malaysian exports started to decreased due to the fall of the Japanese economy during this time as well reducing revenues Malaysia. So, how Malaysian will overcome this problem? Is it give big impact on Malaysian? Hopefully, Malaysian's government can overcome this problem and stabilize our economic.

YaPEIM issue

           Deputy Minister in the Prime Minister's Department Senator Datuk Dr Ashraf Wajdi Dusuki stressed that the Malaysian Islamic Economic Development Foundation (YaPEIM) only use money generating business revenue to cover all the costs involved in programs abroad.

His statement also slammed the accusations and slanders against certain parties claimed that YaPEIM have used substantial funds to finance some programs abroad through funds Development Foundation Orphans and Poor (CATALYST).

He explained that the foundation has generated an annual revenue of RM1.034 billion through its subsidiary businesses, including operations Ar-Rahnu where until 2015 the corporate entity that has generated a revenue of RM83 million.

"YaPEIM alone make a profit. We do not use money allocated for orphans and the poor.

"Allegations that the money of orphans has been used is slander.

"Cop stamp on the invoice is PEMANGKIN not YaPEIM," said Ashraf referring to the two invoices were disclosed to the media by the Monitoring Centre and the National Information Disclosure (NOW) last week.

The invoice shows the payments made for the trip Minister in the Prime Minister's Department Datuk Seri Jamil Khir and his wife and entourage were charged to the program Education Malaysia (EM) in conjunction with the Mid West Chicago Game that brings together over 1,000 students from the United States and Canada.

"Even if you make a comparison with RM1.034 billion. RM410,000 used to travel to the US, (so) just to 0.0063%," he said when winding up debate on the Supply Bill 2016 at the committee stage in the House of Commons on Tuesday.

Ashraf at the same time stressed YaPEIM not have any issue of abuse to the attention of the agency on the contrary only because of the negative perception some people.

He said that it can be seen that the agency's audit report does not show any element of fraud.

He also pointed out that the minister had no authority in the matter because everything YaPEIM operations subject to management and the board of trustees of the agency.

"So the minister or deputy minister has no power to intervene unless we feel there is any form of abuse, and in this case was not fraud but the issue of perception. But we'll see if there are any issues of governance.

"But as ministers and deputy ministers, we only see the audit report, we would not want to be dragged into YaPEIM every day, want to see what's chief executive officer, president or the board of directors he created, must understand the concept of governance," he said.

Dr Ashraf also lashed out at opposition MPs from being influenced by negative perceptions to the agency and said they should support YaPEIM.

YaPEIM concern over the past week, the alleged misuse of funds and excess payment of salaries to top management.

The claim by the Director (NOW) was also linked Akmal Nasir Jamil, YaPEIM and supreme leader accused the foundation misused and perverted charity fund (Salary Deduction Scheme).

Jamil Khir in the meantime has denied allegations that he misused public contributions to fund a trip abroad and described it as a form of persecution and cruel reality deviates from the true facts.

Following that a police report was made on Sunday.

Director General and Chief Executive Officer Datuk Abibullah Samsudin YaPEIM in a press statement on Tuesday stressed YaPEIM and individuals affected by allegations it would take legal action in the near future.

TPPA Controversy

TPPA is not get attention from Malaysia only but also in 11 other countries, namely Australia, Brunei, Canada, Chile, Japan, Mexico, New Zealand, Peru, Singapore, the US and Vietnam. A special focus and attention on TPPA happen because it is considered the most comprehensive trade agreement because it includes many things such as investment, trade in electronic goods, government procurement, intellectual property, human resources and environment.

Malaysian against to the agreement is largely focused on two themes, namely, government procurement and intellectual property (IP). This is because it is feared that if the government is constrained by international law through the TPPA, basic assist Bumiputera companies as well as government-linked companies (GLCs) will be stunted. For IP, it is expected that medical costs will become more expensive and this will certainly increase their financial burden in facing increase in cost of living.

 There are already exists a parliamentary caucus on the TPPA, which consists of six representatives from the government and five from the opposition and the overall total of 14 consultations have been taking place since 2013 but the debate in Parliament after the final TPPA is quite different from the caucus level discussion since before this all discussion is based on the limited information TPPA.

Therefore, the expectations of all people involving 222 MPs is that the debate must be based on facts and not on emotions or unfounded allegations. All the elected representatives not only be guided by the facts contained in the TPPA content but should also refer to the two efficacy studies TPPA is being made by the independent professional institute that is the Institute of Strategic and International Studies Malaysia (ISIS) Malaysia and also the company PricewaterhouseCoopers (PwC)


The House of Representatives had given 25 days for the Third Meeting starting from 19 October 2015 to 3 December 2015. Each of the 12 countries in the TPPA was given 2 years to decide whether to join it or not. Hopefully, the House of Representatives will be use as well as possible so that the results to be achieved must be the best interests of the country and people and not precede political agenda.

Summary of Malaysia's budget 2016

 Prime Minister Najib Razak had announced Malaysia's 2016 budget on Friday,23 October 2015. Following are some highlights of Najib's ongoing speech to parliament.

Five main strategies budget 2016
1) Strengthening the resilience of the national economy
2) Improving productivity, innovation and green technology
3) To prepare the human capital
4) Empowering Bumiputera agenda
5) Easing the cost of living

Budget allocation

• 2016 budget allocates total RM267.2 billion, an increase from a revised allocation of 260.7 billion for 2015. The initial allocation for 2015 was 273.9 billion.
• For 2016, federal government revenue collection is projected at RM225.7 billion, up RM3.2 billion from 2015.

Taxes

• Income tax increased from 25 per cent to 26 per cent for people earning between RM600,000 and RM1 million. Increased to 28 per cent for those earning above RM1 million. Some tax relief measures to help middle income wage earners.
• Goods and services tax to increase government revenue by RM39 billion, versus RM27 billion in the first eight months of 2015. Some basic goods to be zero-rated, including over-the-counter drugs, baby milk, nuts based food, noodles.

Expenditure

• RM41.3 billion allocated to improve education.
• Defence Ministry allocated RM17.1 billion.
• Allocation of RM30.1 billion for development projects, RM5.2 billion for security, social development gets RM13.1 billion.
• Government allocates RM1.2 billion to the tourism industry.
• Majlis Amanah Rakyat, an agency to facilitate the development of ethnic Malays and other indigenous Malaysians, allocated RM3.7 billion.

Subsidies and handouts

• Spending allocation for Bantuan Rakyat 1Malaysia (BR1M), a programme providing cash assistance for low income households, will be raised to RM5.9 billion in 2016, up from an estimated RM4.9 billion in 2015.

Development

• Affordable housing projects allocated RM1.6 billion, to be spent building 175,000 houses.
• RM900 million allocated to resolve Kuala Lumpur traffic congestion.
• Telecommunications infrastructure allocated RM1.2 billion.
• RM1.4 billion earmarked for development of rural roads nationwide. An-Borneo highway to be toll free.
• Government to improve improve infrastructure in rural areas, including building houses and water supply.
• RM5.3 billion allocated to modernize agricultural sector.
• RM515 million allocated to improve electricity supply in Sabah state.

Oil project

• Pengerang oil project to receive RM18 billion in 2016.

Minimum wage

• Increased from RM900 per month to RM1,000 in peninsular Malaysia.

Macroeconomic highlights

• Current account surplus in 2016 to be down more than half to RM11.3 billion from RM23.4 billion this year and RM47.3 billion in 2014.
• Economic growth forecasts at 4.0-5.0 per cent for 2016, compared with 4.5-5.0 per cent this year.
• Fiscal deficit for 2016 reduced to 3.1 per cent of gross domestic product, down from 3.2 per cent in 2015 and 3.4 per cent last year.
• Exports forecast to rebound 1.4 per cent in 2016 after a 0.7 per cent fall this year.
• Inflation seen at 2.0-3.0 per cent in 2016, against 2.0-2.5 per cent this year.
• Government debt limit to remain at 55 per cent of GDP in 2016, forecasting a ratio of 54.0 per cent this year and slightly up from 52.7 per cent in 2014.
• Oil and gas related revenues seen at 14.1 per cent of total revenue in 2016, down from 19.7 per cent in 2015.
• Goods and Services Tax (GST) expected to raise 39 billion next year, against RM27 billion collected in the first eight months of 2015.
• Subsidy allocations seen falling slightly to RM26.1 billion from RM26.2 billion this year.