COMMENT
By WONG CHUN WAI

THE campaign is already in full swing in Penang, which is set to be the most intensely-fought state in the coming general election.  

At the Rifle Range flats, where over 8,000 votes are at stake for the Bukit Bendera parliamentary seat, which had an electorate of 65,126 in the 2004 general election, Barisan Nasional and Parti Keadilan Rakyat have put up banners and flags.  

It is unlikely that the DAP would give way to PKR to contest in this predominantly Chinese constituency. The DAP has always put its stake here but PKR adviser Datuk Seri Anwar Ibrahim is visiting the flats today.  

Buntings announcing his visit have been put up while ironically, the DAP rocket is missing at the flats, which the party regards as its territory.  

At Penang Road and Macalister Road, the DAP flags lined the two streets while at the Penang Chinese Town Hall, a huge crowd gathered to listen to the party leaders talk about the Hindraf issue on Saturday.  

But the centre of attraction was DAP secretary-general Lim Guan Eng, who is said to be leading the party's challenge in Penang.  

A big screen had to put up outside the hall to accommodate the listeners in the state, where urban voters are said to be in an anti-establishment mood.  

But Barisan isn’t taking all these salvoes quietly. MCA deputy president Datuk Seri Chan Kong Choy is in Penang today to meet party leaders and supporters, where its elected representatives are known for their service work.  

On Saturday, Second Finance Minister Tan Sri Nor Mohamed Yakcop showed up at the Methodist Boys School, where the Penang Christian Association for Relief had raised RM350,000 for seven organisations.  

The stakes are high as Barisan holds 38 state seats in Penang: Umno (14), Gerakan (13), MCA (nine) and MIC (two). The DAP and PAS have one each.  

Barisan also has eight parliamentary seats: Umno (4), Gerakan (3) and MCA (1). The DAP has four while Keadilan has one. 

The fight in Penang is for more than just numbers – this is also the home state of Prime Minister Datuk Seri Abdullah Ahmad Badawi.  

Barisan has stepped up its campaign by telling Penangites to reject Guan Eng, saying he was from Malacca and an outsider.  

Last week, state Barisan Youth chief Huan Cheng Guan said Penang was not a hotel for outsiders, like Guan Eng, who could “check in and check out” as they pleased.  

He said there was no reason for Penangites to opt for such politicians as there was a large pool of qualified local candidates.  

A DAP official retorted, saying that even the top Gerakan leaders in Penang were not “Penang originals”.  

He cited the example of Bukit Bendera MP Datuk Seri Chia Kwang Chye, who like state executive councillor Teng Chang Yeow, is from Johor while Dr Teng Hock Nan, another Gerakan leader, was born in Kedah. Teng’s other brother, Chang Khim, is a DAP state assemblyman in Selangor.  

But even as the decibels have gone up, there are many uncertainties in the state. No one is sure if acting Gerakan president and Chief Minister Tan Sri Dr Koh Tsu Koon is contesting a state seat.  

He has refused to answer persistent queries from the media but party adviser Datuk Seri Dr Lim Keng Yaik has suggested that Dr Koh could stay in the state. Certainly as acting president, Dr Koh can have much say in where he wants to go although the prerogative is with Pak Lah.  

There is also a precedent – former Gerakan president Tun Dr Lim Chong Eu remained as Chief Minister. Even when Keng Yaik took over the party leadership, he was a Perak state executive councillor.  

But times have changed. It would be awkward, if not a political disadvantage, to be left out of the Cabinet.  

The fate of the MCA state assemblymen is also not clear. Except for Ooi Chuan Aik and Tan Teik Cheng, the rest of the seven MCA men are three-term elected representatives, who must give way to new faces under party rules.  

While the senior assemblymen may have their base of loyal voters, regarded as “goodwill votes,” and essential in a tightly-fought race, fresh faces will also give Barisan an edge.  

The MCA needs more educated, more qualified and more credible leaders to emerge although the present crop of working-class style assemblymen have earned a reputation for being service-oriented.  

For the opposition, the DAP-PKR electoral pact has been slow and leaders from both sides have said, off the record, that the process has been “agonising.”  

Both sides, believing that the anti-establishment mood was going to result in a swing, are holding their cards tight to their chests and unwilling to compromise, believing this is their time.  

Despite the drumbeat, the DAP has also been reluctant to declare a fight for the state government. It has presumably learnt from the bitter experiences of the past.  

The gerrymandering process, which weighs favourably for the semi-rural areas on the mainland, has made the job impossible for the DAP – these seats are safely in the hands of Umno.  

This is a point the MCA, Gerakan and MIC have emphasised to Chinese and Indian voters – you may vote your communities out of the government.  

On The Beat with Wong Chun Wai

THE Indian community is shrinking, that’s a fact. If the MIC remains the third biggest component party, it has more to do with history and its partnership with Umno and the MCA in fighting for independence.  

The community now stands at 1.8 million, roughly about 8% of the country’s 26 million population, down from 10% before.  

The number of registered foreign workers is two million and it wouldn’t be wrong to state that there are now more foreigners, mostly Indonesians, than Indians, and that’s not even counting the sizeable illegal workers.  

But the community has never been so split. There are many grievances in the community, with pent-up frustrations of what they perceive as marginalisation from the economy.  

The MIC, especially its president Datuk Seri S. Samy Vellu, has been on the receiving end, with sections of Indians charging that the party has not done enough. They also want Samy Vellu to go, saying he has over-stayed.  

The party’s fate has become even more complicated with rivalry within the party, with forces aligned to former deputy president Datuk S. Subramaniam also wanting Samy Vellu out.  

To make matters worse, other smaller Indian parties are also fighting for the community’s affection.  

Although the People’s Progressive Party claims to be multi-racial, it is essentially dominated by Indians.  

PPP president Datuk M. Kayveas has made no bones of how he feels about Samy Vellu and their feuds are well known. It has been reported that the two squared it off at a recent Barisan Nasional meeting.  

Then, there is the Indian Progressive Front (IPF), which has tried for years to be accepted into the Barisan, but has been stopped by the MIC.  

It has remained loyal to the Barisan, with its ability to reach out to the poorest in the community, and its president Tan Sri M.G. Pandithan recently buried the hatchet with Samy Vellu.  

That olive branch has, however, earned the wrath of its members who felt betrayed; for years, they have fought against Samy Vellu within the pro-government mechanism despite being kept out of the coalition.  

Last week, it was reported that the IPF is now split into two factions – one led by an ailing Pandithan and the other by the former secretary-general K. Panjamurai. The latter now leads the newly formed IPF Bersatu.  

Panjamurai said his group would support the Barisan in the coming elections and would back Subramaniam and Kayveas.  

Then, there are the Hindraf leaders who have proven their ability in organising the community and getting thousands of Indians into the streets to protest.  

Their methods may be questioned – and the cost has been high as they are now in Kamunting – but no one should scoff at their ability to rally the Indians.  

But the story doesn’t end here. Businessman Datuk K.S. Nallakarupan, once an ally of Datuk Seri Anwar Ibrahim, has formed Democratic Indian United Party. He’s out to face off with Parti Keadilan Rakyat.  

Then, there are Indian leaders in the PKR and the DAP. It is no secret that they, too, are counting the number of Indian candidates to be fielded and there is already grumbling ahead of the polls. It is a time bomb.  

But the bottom line is that there are no Indian majority seats in this country. Any Indian party depends on the Malay or Chinese votes to win and that’s the reality.  

The MIC has nine parliamentary seats and 19 state seats. They hold positions because the leadership is committed to power sharing among the various ethnic groups.  

But the Hindraf issue, which has gone down badly with Malay voters, can determine the voting trend for the MIC seats. If the Indians themselves decide to be anti-establishment by voting against the Barisan, then it could be a self-inflicted wound. Or triple blow, if the Chinese join in as well.  

Some survey findings have revealed that the crucial Malay voters are angered by the street protest and call for the British royalty to intervene, and this sentiment may work against the MIC candidates.  

Unwittingly, the Indians may join in and vote against their own MIC representatives too. The findings also revealed that the Malay votes, except in certain PAS areas like Kelantan and Kedah, are safely with Umno.  

In short, the Malay votes for Umno is solid despite what the urban middle class may feel about certain issues.  

That’s the political reality. As for the Indian community, they are at a crossroads, with the elections just weeks ahead. 

Following the recent bullish run, helped by oil palm plantation stocks, Malaysians had hoped the run would continue ahead of the general election and possibly a Chinese New Year rally. 

There was talk of second and third liner stocks following the blue chips, where ordinary punters would make money from Umno-linked counters and there being a trickle down effect. 

But as the Dow Jones Industrial Average collapsed, the tumbling effect hit the world. When the United States is hit, no one is spared – that’s the reality. 

The Wall Street Journal reported on Tuesday that even the Bank of China appeared increasingly likely to report a large write-down on its investments in US mortgage securities, the result of the sub-prime crisis where huge loans were made to borrowers with weak credit. 

The Fed move – described by many analysts as an “emergency measure” to stem panic and fear sweeping world markets – came after US President George W. Bush announced a stimulus package of US$150bil (RM490bil) for the US economy which was fast sliding into, if not already in, recession.  

For the small Malaysian investors, the question is what should they do in these uncertain and turbulent times? Should they take advantage of the rebound and sell out? Or should they see the rebound as an opportunity to pick up under-valued stocks? 

All eyes will be on Wall Street again tonight (Malaysian time) when the US markets open for trading. When the Fed announced the 0.75% interest rate cut on Tuesday, Wall Street actually ended the session down 128 points. 

It fell more than 300 points during intra day trading on Wednesday but rebounded strongly to end by nearly 300 points. It was a roller coaster ride no doubt. 

The bulls and the bears are still fighting it out. The bulls argue that the problems of the US sub-prime mortgage crisis have already been factored into the market – that the big US banks have already made provisions for losses from their involvement in the sub-prime debacle; and that under the Bush economic stimulus, the hefty rate cut plus the likelihood of another cut when the Fed meets next week will help the US economy to avoid a recession. 

The bears suspect the Fed emergency rate cut shows that the US economy and stock market are in far worse shape than officially acknowledged; that the US government is running out of bullets to fight the impending recession, and that the market turbulence has still to run its course. 

If you have been watching the CNN Richard Quest coverage of the World Economic Forum in Davos, you would have observed how divided the experts are over the state of the US economy.  

A strong recovery over the next couple of trading sessions on Wall Street would be a great relief to the US Government and the bulls; while further falls in the indices would rattle already battered nerves. 

Given this uncertain climate, caution should be the guiding principle for Malaysian stock market punters. 

For punters who did not take advantage of the local market run-up in early January, it’s too late to take profits. For those who are staring at some losses, it’s probably the wrong time to sell. As the saying goes: “You don’t make a loss if you don’t sell.” 

But stockbrokers are telling investors that there are some buying opportunities on Bursa Malaysia. If you are not worried about the volatility that is likely to be a feature on the Malaysian and world stock markets in 2008, and take a medium-term view of three to five years, there are currently some good buys on the Bursa. 

Another point to note: We must make a distinction between the volatility in the stock market and the broader economy. 

It is important to understand that stock market turbulence is very much the result of external factors, emanating from the United States. The US crisis is largely a banking and financial crisis. 

The Malaysian economy remains strong and its fundamentals are largely intact. The Government’s finances are strong with rising revenue from oil and income taxes. The Government’s commitment towards reducing the budget deficit remains on track. The country’s external reserves are very healthy.  

Also, inflation remains manageable. At 2%, it is much lower than inflation in many countries including China, Hong Kong, Singapore and Australia. 

It is a point which many ordinary Malaysians, some used to a pampered life with subsidies, do not realise. The rising cost of goods, unfortunately, is a global trend due to escalating oil prices and the shortage of raw materials. It is essentially out of the Government’s control. 

As Deputy Prime Minister Datuk Seri Najib Tun Razak pointed out on Wednesday, 30% of items used to measure inflation were mainly price-controlled goods while the others were heavily subsidised items, like fuel. 

The year 2008 will definitely be a more challenging year than 2007 both for the stock market and the economy.  

What can be said is that the Malaysian economy is in a far better position than most to meet the challenges ahead.  

COMMENT BY WONG CHUN WAI 

DATUK Seri Chia Kwang Chye always make it a point to ask his host, whenever he is invited to a function in Kuala Lumpur, what they really mean when the dress code is stated as “smart casual”. 

“I ask them whether smart casual Penang-style or KL-style. In KL, they expect you to put on a jacket with no tie when the dress code states smart casual but in Penang, casual means short-sleeved shirt or even just a T-shirt,” he said recently, adding that he preferred the much simpler lifestyle on the island. 

The Deputy Information Minister, who is regarded as a possible candidate to be the next Chief Minister, is well aware of the expectations of Penangites. 

The islanders expect their representatives to be humble, simple, outspoken, hardworking and be on call almost 24 hours for them. It wouldn’t be wrong to say that politicians in Penang, especially in Chinese-predominant areas, are the hardest working politicians in the country. 

Pengkalan Kota state assemblyman Lee Hack Teik travels around in his working-class constituency on his motorcycle. Once an anti-establishment area, the area, located within the inner city, has become the stronghold of the MCA. 

His voters call him up for everything – from a leaking roof to writing a letter to a government department. But no task is too small for this bespectacled rotund leader. 

Komtar state assemblyman Datuk Lim Gim Soon is not known to be an intellectual and neither does he pretend to be one. But he has built a solid reputation for his efficient services. He has a sub-service centre, mostly in coffeeshops, in almost every street in his constituency. 

It’s the same with Bagan Jermal state assemblyman Ooi Chuan Aik, dubbed the Michael Chong of Penang, who could end up defending his seat against Bagan DAP Member of Parliament Lim Hock Seng, who is speculated to be giving way for party secretary-general Lim Guan Eng to lead the battle in Penang. 

Hock Seng, a contractor, has a record that can match those of the MCA – he drives his own excavator to fill up potholes and makes sure he is among the pallbearers at funerals. His critics say he is living on his past reputation but in Penang, where legend seems to thrive, these tales have helped him. 

While the DAP is not hiding its ambition in Penang this elections, the party has stopped short of declaring its wish to capture the state as it had done previously. 

There is a painful past – in 1995, the DAP declared it was ready for power, asking the voters to “Try Five Years,” playing on the sentiments that Tan Sri Dr Koh Tsu Koon was a weak politician, who was submissive to Umno. 

The DAP asked the voters to support DAP supremo Lim Kit Siang as the “Chief Minister With Power”, with huge cut-outs of Robocop, a popular movie then of a robotic character, to project Kit Siang as the protector of the weak. But the Barisan hit back with “Die Five Years”, saying Robocop was a killing machine. 

Huge crowds attended the DAP ceramahs but when the ballots were counted, Dr Koh easily defeated Kit Siang in Tanjung Bungah by 7,487 votes. The thunderous support for Kit Siang’s rhetoric turned out to be deceptive, proving how unpredictable Penangites could be, and how their constant criticism of government policies did not necessarily translate into votes. 

Kit Siang, who is almost certain to defend his Ipoh Timur seat, started his foray into Penang in 1986 when he wrested the Tanjung parliamentary seat from Dr Koh by 4,690 votes. Besides winning the Kampung Kolam state seat, he also helped the party win nine other state seats in the Tanjung One battle. 

By 1990, the DAP launched its Tanjung Two campaign with the DAP strongman knocking off the then Chief Minister Tun Dr Lim Chong Eu in Padang Kota by 706 votes. Kit Siang retained his Tanjung parliamentary seat by a majority of 17,479 votes. That was not all, the DAP won 14 seats, denying Barisan its two-thirds majority.  

It was just three seats short of forming the next state government. 

The harsh outcome of the DAP’s Tanjung Three bid for power in 1995 was that it only managed to win one state seat despite the huge resources channelled into the campaign. 

Fast forward 2008 – it is 13 years since the debacle. Younger people have taken over the DAP leadership and those who were involved in the 1995 polls have learnt the bitterness of their mistakes. 

This time around, no one is making big claims. In fact, no one, including Guan Eng, wants to talk about where he is contesting. 

Even Dr Koh seems to be extra secretive these days. In an ironic manner, he asked the press why they wanted to know if he was moving to a parliamentary seat. Tan Sri, it’s our job to ask. The voters want to know. 

There is also a difference to the 1995 fight. This time, the DAP is depending on the Parti Keadilan Rakyat to deliver the Malay votes and possibly one or two state seats, as farfetched as it may sound.  

After all, this is the Prime Minister’s home state and the mainland is where most of the Malay voters are located. 

The DAP is hoping the anti-establishment sentiment will swing in their favour and, by not talking about winning, the votes may just tip in their favour. 

In a state where voters want to have the best of both worlds – keeping the Barisan and the Opposition – the DAP is hoping for a bonus. But it’s still early days and Penangites are likely to keep the opposing sides in suspense. Until the ballot boxes are opened, no one can predict the outcome.  

And certainly, no one can take the Penang voters casually when it comes to voting. That would be the smartest thing to do for any candidate hoping to stand in the island state.  

ON THE BEAT

By WONG CHUN WAI

FORGET street protests, forget detention without trials, forget VK Lingam and certainly, forget any sex DVD that involves a politician. These may make good reading and good sound bites at ceramahs but the three main issues that affect ordinary voters the most are inflation, crime and foreigners.  

According to the findings of several surveys, commissioned by various bodies, voters are concerned with the increasing cost of living the most.  

For wage earners, who find their take-home pay a pittance after the various deductions, they are certainly concerned with talk that the prices of many essential items would go up.  

So used to a pampered life style, with an annual whopping RM4bil in subsidies from petrol to cooking oil, many Malaysians are unaware that our cost of living is among the lowest in the region.  

Indonesians, Singaporeans and Thais have long accepted that they have to pay for their consumption, with no government handouts, and even as they struggle, they have managed to be competitive.  

Often unable to differentiate between the cost of living and living standards, Malaysians interviewed said they felt comfortable and secure, not worried about loss of jobs. Most are also unaware that the rising cost is part of a global trend, the result of oil price hikes and the shortage of raw materials for food production, particularly in Australia due to the drought.  

The details of such surveys would probably be released ahead of the elections, which would give a more accurate picture of most middle class Malaysian voters, who place bread-and-butter issues as their priority.  

While national issues such as civil liberties, corruption, education and religious intolerance bother them, subjects that affect them directly, especially their pockets, matter to them the most.  

It is obvious that even as the Government talks about doing away with subsidies, it would have to consider the hefty political cost, and in the end, it would be a balanced approach that it would have to adopt, as most Malaysians cannot accept any drastic change to their standard and cost of living.  

Another issue that cuts across all races is the rising crime rate. Malaysians do not feel as safe as they used to feel any more. They are not interested in listening to politicians who tell them that crime rates are not as bad as reported in the press.  

Such argument does not hold water because most Malaysians have had personal experiences or know someone who has. Politicians who think the security issue is being exaggerated must be out of touch with reality or they simply refuse to accept the fact.  

No doubt, a huge sum of money has been allocated to beef up the police force, which only has a staff of 95,000 personnel, and to purchase closed circuit television cameras (CCTV), but the presence of policemen must be a priority.  

The deployment of the Federal Reserve Unit (FRU) and the general forces on our streets would make Malaysians feel more secure.  

The CCTV would help to monitor the movement of people and recorded videos would help identify the criminals once a crime has been committed but the root causes need to be identified.  

When it has been acknowledged that at least 80% of the detainees at Simpang Renggam are Indians, the Government surely must be concerned with the social ills affecting the community, the displacement of estate workers by foreigners and the rural-urban migration pattern.  

In cities, the Mat Rempit problem and restless teenagers in malls are the result of big Malay families staying in low-cost flats and small homes. Still adjusting to urban living, the young prefer to roam outside, in these cases, the streets and air-conditioned malls, and unfortunately, also making a nuisance of themselves.  

For the more enterprising Chinese young, whose dropout rates are a concern with the MCA, the fast buck mentality is a worry. From selling faked DVDs to becoming runners for Ah Long, they remain a social concern.  

Another contributing factor to crime, where Malaysians are concerned, is the large number of foreigners. Malaysians are upset, if not angry, at the poor enforcement of the police coastguards in stopping the influx of foreigners.  

We have become a haven for poorly educated, unskilled foreign labourers. Unlike Singapore, which seems to attract the best foreign talent, the perception is that many Indonesian workers are better able to secure their permanent residence than other foreign professionals.  

Such practices make a mockery of our immigration rules and, in the long run, Malaysians, regardless of their race, have to bear the cost of such myopic policy.  

The continuous reports of Bangladeshis being stranded at airports frighten most Malaysians and, as much as we rely on foreigners, particularly in the construction and plantation sectors, it is time we close the doors to cheap foreign labour.  

Why should Malaysia be apologetic if we decide not to use Indian labour or any nationalities for that matter? We owe them nothing.  

There is no need for our government to clarify to any countries simply for diplomatic niceties. The cry is loud down the ground among Malaysians – we have enough foreign labour.  

Religious insensitivity is another issue, which bothers many non-Muslims. They are concerned that lower level bureaucrats are imposing their prejudices when they carry out their jobs.  

The leadership may understand the broader picture, with the nation’s moderate policy in tact, but down the line, these officials interpret the rules their way. Because certain issues involve religious concerns, the leaders are sometimes reluctant to be seen to be taking a different approach openly, even if they differ in their opinions.  

The result is these religious bigots are allowed their way and politicians are sometimes not aware that their authority is being chipped away by these Little Napoleons.  

Seemingly non-issues have created discontentment among some section of Malaysians and the result is that our leaders have to put out these fires, taking away their precious time, which should be devoted to more pressing concerns of the nation.  

Datuk Seri Abdullah Ahmad Badawi is a good man. The Prime Minister deserves our support and even as he takes time to meet our expectations, we cannot deny that he has allowed greater democratic space, after 20 years of authoritative and uncompromising rule.  

It is an experiment which has led to more debates and, in the process, more controversies, as a result of which some may erroneously perceive the leadership as being too accommodating while some, including politicians and bureaucrats, seem tempted to test, even challenge, the leadership. But they shouldn’t under-estimate the leadership. 

ON THE BEAT
BY WONG CHUN WAI 

TWO high-profile crimes in 48 hours – the abduction of Sharlinie Mohd Nashar outside her home and the brutal killing of Johor state assemblyman Datuk S. Krishnasamy at the Johor MIC headquarters.  

Five-year-old Sharlinie was snatched from outside her home in Taman Medan in Petaling Jaya while Krishnasamy was shot point blank by a gunman in a lift.  

These two incidents come just when the nation is still reeling from the shock of the controversy surrounding the sex DVD involving Datuk Seri Dr Chua Soi Lek, where he was secretly filmed in a hotel room.  

The common thread is that these incidents create the perception that no one is safe anywhere, any more. Playing outside the home, going to a public place, or even retreating to the privacy of a hotel room are no longer as secure as before.  

The public do not expect the police to be able to resolve the former MCA vice-president’s case because the incident is said to have taken place at least six months ago or even longer. Nor do we want unnecessary resources used in this case.  

But the whole country will certainly be watching how the police tackle the two cases involving Sharlinie and Krishnasamy.  

The anxiety surrounding Sharlinie is tampered with a sense of hope that the high public profile could help the police solve the case quickly, and with a happy ending.  

Frightening tales 

Certainly, Malaysians do not want to see these two cases ending up in the cold files, where we hear standard replies that these cases are still being investigated, although we know the police have headed nowhere.  

For a long time, the public have been trying to tell our leaders that the country is no longer as safe it used to be, and should be.  

It has been a dinner conversation topic for some time, where everyone seems to have a friend, a relative or a colleague who has been robbed in broad daylight or has had his car stolen from outside the house.  

No one, from the student to the wealthy, is spared. At a dinner last week, a wealthy businessman told me he had three cars stolen and, fearing for his safety, he moved out of his bungalow to an apartment.  

In another case, a developer narrated how burglars, believed to be foreigners, smiled and waved at the closed circuit television that was installed at his property.  

We are supposed to put up with diplomatic niceties, so as not to stir up the anger of our neighbours, but try telling that to ordinary Malaysians who are fed up with crimes committed by foreigners in Malaysia.  

As much as we depend on foreign labour, many of us think it’s time we put a stop to the continuing influx of Indonesians, Bangladeshis, Pakistanis, Indians, Myanmars, Cambodians, Nepalis, Chinese and now Africans into our country.  

Yes, many crimes are committed by Malaysians, too, as the statistics reveal. Certainly, Dr Chua was fixed by his fellow countrymen and not foreigners.  

But policing has become more difficult because of the large number of people, whose background and identities are largely unknown to the police. Their presence makes the job of our men in blue extremely difficult.  

How can we feel safe when Malaysian companies engage foreigners as security guards even when the law forbids it?  

It does not help when enforcement by certain government agencies is bad, and in some cases, even suspect. The shocking fact is that there are now more than two million registered foreign workers, not counting the huge illegal population, in the country. That’s more than the 95,000-strong police force and even the entire Indian community of 1.78 million.  

No politician wants to hear bad news but at every investment promotion event, businessmen have always asked our leaders what we are doing to keep Malaysia safe.  

The media can downplay crime stories, in the interest of tourist dollars, but it doesn’t stop people from talking about it.  

Tightening security 

Last week, Prime Minister Datuk Seri Abdullah Ahmad Badawi directed CCTVs to be installed in all buildings as part of a step-up in crime prevention while his deputy, Datuk Seri Najib Tun Razak, ordered a stop to hiring foreigners for airport jobs.  

Airports are designated security areas and foreigners certainly have no business to be allowed to roam freely there.  

The Government has also allocated huge allocations under the Ninth Malaysia Plan for the police.  

We understand that it takes time to recruit more policemen and buy modern crime-fighting equipment but, at the same time, we should consider doubling up our volunteer policemen.  

In the United Kingdom, much of routine police work is carried out by the community police, thus freeing the professional policemen to carry out the more difficult tasks.  

The presence of policemen in the streets has always acted as a deterrent and that should be the case. We should be mindful that policemen walking in the streets are more effective than those pushing pen and paper in the stations.  

Crime has never become an issue in previous polls but in this election, the voters want to be convinced that their homes and streets are safe. And wannabe MPs and state assemblymen better have their answers ready when they walk the streets to meet the voters. 

COMMENT
By WONG CHUN WAI

JUST carry out a simple survey among your family members and friends – they are probably not aware that our cooking oil is subsidised.  

The price of cooking oil in Malaysia is RM2.50 per kg and we would assume that the price would be in the same range in the neighbouring countries.  

In Thailand, cooking oil costs between RM3.20 and RM5.80 per kg and in Singapore, it is RM6.50 per kg.  

Our price is pegged low because the Government dished out RM800mil in subsidies last year alone.  

Even flour is subsidised, as are some essential items in education, housing and agriculture – totalling RM5bil.  

And that’s not even taking the fuel subsidies into consideration. With crude oil prices hovering at US$100 per barrel, the subsidies have climbed to RM35bil. That’s equivalent to what our planners have set aside as the development expenditure for the Ninth Malaysia Plan each year.  

The fact is Malaysians have become used to the pampered life. Even those rich enough to drive luxury cars would shudder if they have to pay more at the pump, what more the common people.  

But the harsh reality is that at one point or another, the Government has to review these huge subsidy bills.  

Increasing subsidies means diminishing funds for projects that matter, like roads, schools, hospitals and other public amenities.  

But no Government would make such decisions when the general election is around the corner. The political costs would be simply too high.  

Nobody wants to hear the bad news with regard to price increases, especially when the opposition has even promised that they would reduce fuel prices if they come to power. That may be a mission impossible but in the emotions of the polls, anything can be made believable.  

Malaysians have rightly asked why the country should face a cooking oil shortage when we are the world’s second largest producer of palm oil.  

Palm oil prices are on the ascent and this has certainly benefited major producers like Malaysia and Indonesia.  

But in Indonesia, where cooking oil is not subsidised, millions of poor Indonesians have turned to boiling, instead of frying, their food, when the price zooms up.  

Another factor that comes into play is that with crude oil prices going up, the price of crude palm oil goes up in tandem since the commodity is increasingly being used also as a source of biofuel.  

The average consumer is not interested in the complicated mechanics of palm oil futures trading and the voracious demands from China and India, the biggest consumers of palm oil and everything else.  

But from smuggling to hoarding, to increased demand of our subsidised cooking oil, an artificial shortage has hit us.  

Back to the bigger picture, the demand for oil has gone up from 82.4 million barrels a day last year to an expected 90 million barrels by 2010, mostly from China and India.  

Malaysia produces about 700,000 barrels a day but we use over 520,000 barrels a day. Based on current trends, we may end up as an importer within four years. This is hardly good news when Petronas is a major contributor to the country’s economy via the payment of taxes, dividends and royalties.  

Other external factors are difficult for the Government to control. For example, the cost of shipping raw materials across the world’s oceans have reached an all time high, pushing up the prices of grain, iron ore, coal and other commodities.  

Flexnews reported in October last year that the average price of renting a ship to carry raw materials has tripled, and in some cases, ocean shipping can be more expensive than the cargo itself.  

Higher costs are naturally passed on to the consumers, affecting the price of everything from cars to washing machines and bread, it reported.  

Politicians are fond of asking businessmen to absorb higher costs, which makes no sense.  

The Manila Standard Today reported recently that the prices of milk and milk-based products had gone up as the cost of imported raw materials continue to rise. Powdered milk and evaporated milk have been the main items.  

Everything is interconnected. The drought in Australia affected its dairy industry as the country had to import maize, an essential item for animal feed, for its cattle. Even the price of cheese has jumped as a result.  

Our politicians have preferred to downplay the escalating cost of living while trying to convince the people on the need to reduce subsidies. But the fact is, you cannot do both at the same time.  

Sooner or later, we have to bite the bullet and face the reality of sharing the burden of subsidies. Elections or not, the Government will have to deal with the impact of oil price increases.  

At the same time, the Government needs to work harder to stop wastage in projects that bring little benefit to Malaysians. Pride is one thing but if it serves little besides inflating our egos, then we should just save our money.  

We also need to contain our cost of production and be serious in fighting corruption and mismanagement.  

The campaign to convince Malaysians to be prudent and thrifty can only work if the Government also ends some of these abuses.

The prediction is that crude palm oil prices will continue to escalate from current record levels.  

Employee benefits: United Plantations poured money back into the working community by building these housing quarters in Jenderata.

Heavy foreign buying in Sime Darby and IOI Corp, two of the world’s largest oil palm planters – pushed the Kuala Lumpur Composite Index to 1,466.67 points.  

It is the best start for the year, as some 942 million shares changed hands. There is bright hope for a Chinese New Year rally ahead of the general election.  

Just consider this: in 2006, the price of crude palm oil was RM1,500 per tonne. Today it is past RM3,000 per tonne. In all likelihood, the price is going to be robust in view of the strong demand due to the ravenous appetite for edible oils from China and India.  

In short, oil palm plantations are rich and going to be so for sometime to come.  

The question is how they are using it to reward the little people who have contributed significantly to their bulging pockets – their workers.  

In an ideal world, it would be great if they could tear up the collective agreements signed when prices were lower, and draw new ones to take into account the spike in crude palm oil prices.  

But the fact is this is not going to happen because what could be a RM3,000 per tonne commodity today could drop to RM2,000 per tonne in 24 months. Companies will loath to tie themselves down with a bigger wage bill due to the cyclical nature of the business.  

Still there are other ways in which palm oil companies can share the good times with their workers and families. For a start, they could upgrade the housing in plantations, provide better medical facilities and adopt schools in the vicinity of their plantations.  

The point is that they have a duty and obligation to spread the wealth, especially to those who have toiled under the sun for years.  

It is interesting that when the issue of marginalised workers was raised recently, all fingers were pointed at the Government.  

Sure, while it is the responsibility of the Government to install the infrastructure, to nurture the economy and ensure there are sufficient opportunities for education and work, the private sector cannot take a hands-off approach – especially when record profits are being chalked up.  

To be fair, some plantation giants have already started moving in the right direction. Take Sime Darby Bhd for example. In December, it announced that it was going to build model townships of affordable housing for thousands of low- and middle-income earners in several states.  

Under the Bandar Gemilang programme, the diversified multinational plans to turn slivers of its vast tracts of plantation land in Negri Sembilan, Kedah, Selangor, Malacca and Johor into townships with a mix of apartments, link houses, semi-detached houses, libraries, schools, sports fields, police stations and places of worship for the major religions.  

In addition, 30% of the land area in each of the townships will be dedicated to open spaces, parks and landscaped gardens.  

It is understood that the prices will be competitive, as the land is owned by Sime Darby. In all probability, some of the workers in Sime Darby’s plantations may well be able to afford the low-cost apartments in these developments.  

With a market capitalisation of more than RM70bil, Sime Darby has also started adopting Tamil schools in its estates as well as sponsoring rural schools in the northern states.  

United Plantations is another exemplary employer – its housing quarters for workers in Jenderata is one of the best around. The plantation group has also poured money back into the working community by building a bakery and sporting facilities.  

The point is that there is no limit to the good that money from the palm oil boom can do.  

Just think about it. There are more than 500 Tamil schools in the country, and two-thirds of them are in rural areas. These schools need resources so that their students can enjoy better teaching facilities and even have the opportunity to attend tuition classes.  

Funds from plantation companies will be heaven-sent for these schools, as they will help their students break the cycle of poverty.  

Even Chinese language and national schools in rural areas can do with a lift.  

Last month, IOI Corp Bhd executive chairman Tan Sri Lee Shin Cheng announced that the company would build the second phase of SRK Ladang Harcroft in Selangor. TSH Resources Bhd, meanwhile, has an adoption scheme for 100 students in three Tawau schools.  

One of the more successful corporate social responsibility programmes is Pintar – a scheme where government-linked companies adopt schools in the back of beyond. 

The main aim of the programme, which stands for “Promoting Intelligence, Nurturing Talent and Advocating Responsibility,” is to assist children from low-income families so as to improve their academic performance. 

There is nothing stopping plantation companies from getting involved in the Pintar programme.  

Basically, the sky is the limit when it comes to doing your bit for Malaysians in these days of heady palm oil prices.  

WHEN Datuk Seri Abdullah Ahmad Badawi chaired his first Cabinet meeting, on assuming the Prime Minister’s post, he had a message for his ministers – he would defend them if they were right. 

But if they were wrong, they would have to fend off the criticisms, sort out the mess and bear the consequences themselves. 

It was a simple leadership style – unlike that of Tun Dr Mahathir Mohamad, who led the government for 20 years with his strong shadow on almost everyone. Pak Lah was going to let his ministers have more space. 

But the price is that if the person fouls up, then the minister concerned would have to go, so as not to burden the Government. 

So, when Abdullah accepted the resignation of Datuk Seri Dr Chua Soi Lek as the Health Minister last week, it came as no surprise. 

The news of the controversial sex DVD came quickly and the issue was not allowed to drag on. It ended just as quickly. 

Within 48 hours of Dr Chua’s admission, it was all over. He made his confession, had his final words and exited swiftly. 

By this week, Dr Chua would no longer be news. That is the harsh reality of politics and a veteran like Dr Chua is well aware of this. 

One week, as they say, is a long time in politics. The media moves on to new issues and follow-up news are relegated to the back pages or not used at all. 

But the issue of leadership qualities, in a general manner, would be discussed. Dr Chua will go down in history as the first Cabinet minister to be caught in such a controversy. 

High expectations 

But he has also set a benchmark. With his forthright admission, he has sent a message to other politicians who have not been caught – you have to quit too if you have been caught with your hand in the cookie jar. 

Adultery is one thing but worse crimes include corruption and stealing land belonging to others. 

Dr Chua has paid a heavy price for his actions. There is no need for any witchhunting exercise, such as trying to locate the woman implicated in the DVD. Let it go. 

But the lesson to be learned from here is that capability, optimism and strength are not enough in politics. The person can be forceful, dynamic and self-deprecating but society expects more from their leaders. 

They don’t expect their leaders to be celibate but values count, which must be difficult for many traditional Asian male leaders. 

The late president Sukarno of Indonesia was well known for his sexual passion; he was reportedly filmed and blackmailed by the Russians. 

On a trip to Moscow, he was said to have befriended a few stewardesses, all KGB spies, who later seduced him in a hotel room. After he was secretly filmed, he was taken to watch the film. 

But the delighted Sukarno asked for copies of the film and asked that it be screened in Indonesia, as he expected his countrymen to be proud of his sexual exploits with the Russian women. 

Changing times 

In Thailand, it is a common practice for the rich, and even poor, to have second wives, or mistresses. 

For Muslim politicians, the religion allows them to have four wives, so it is not an issue. 

But times have changed. Even in the United States, Republican presidential candidate Rudy Giuliani is struggling with such problems. 

He has made New York a safe city and demonstrated crisis management skills during Sept 11 but his three failed marriages and apparent adultery continue to dog him. 

Former US President Bill Clinton, who was caught in a string of sex scandals, said in an interview that he has learnt not to judge people too harshly after his downfall, adding that he understood the pain he and his family had to go through in those difficult times. 

Unfair as it may sound, politicians find themselves judged on a different basis, including by those who don’t practise what they demand of their leaders. 

But that’s the price to pay when one stands for public office, fair or otherwise.