Malaysia Update

 KUALA LUMPUR: The country's biggest toll operator PLUS Expressways Bhd is likely to raise toll rates by five per cent -- half the scheduled rates -- from next month.

"The revenue shortfall is expected to be compensated by the government via cash or other forms of restitution, such as extension to the concession period," a source said.

An announcement is expected to be made by the end of this month.

PLUS's scheduled toll increase of 10 per cent was due last month.

The increase would see the average toll rate rise from the current 13.60 sen per km to 14.96 sen per km.
PLUS general manager of corporate communications Khalilah Mohd Talha said they were unable to confirm the increase as they had yet to receive any official word from the government.

HWANG-DBS Vickers Research Sdn Bhd analyst Chong Tjen San said he saw PLUS receiving only a partial increase in toll rates.

He expects highway users most affected by the increase to be those plying the North-South Expressway, the New Klang Valley Expressway (NKVE) and the Federal Highway Route 2.

PLUS holds the concession to the North-South Expressway, the NKVE, the 16km stretch of Federal Highway Route 2 and the Seremban-Port Dickson Highway.

Its other newly acquired toll roads comprise Elite, Linkedua and the Butterworth-Kulim Expressway, which are not due for any increase in toll rates soon.

The government was supposed to decide last month whether to allow PLUS to raise toll rates by 10 per cent or to compensate the concessionaire.

PLUS last raised toll rates in 2005.

The next hike was supposed to be last year. However, high inflation prompted the authorities to delay the increase.

PETALING JAYA: Credit card interest rates and penalty fees are going down.

Cardholders who pay at least the minimum amount promptly over 12 consecutive months (Tier-1) will pay 13.5% in annual interest from March 31, from the present 15%.

For those who pay promptly for at least 10 consecutive months (Tier-II), the interest rate will be 16%, down from 17%.

For those who do not fall into both these categories (Tier-III), the interest rate will be 17.5%, a minimal 0.5% reduction from 18%.

The present minimum late payment fee of RM10, or 1% of the total outstanding balance will also be reduced to RM5, and the RM100 maximum fee cut to RM75.

ABM chairman Datuk Seri Abdul Hamidy Abdul Hafiz, who announced the changes in a statement yesterday, said banks “have listened” to encourage good repayment habits and instil financial discipline.

“Existing local credit card charges are already among the lowest in Asia, which range from 18% to 42% elsewhere in the region. “We hope the latest measures will motivate credit card holders to diligently make at least the monthly minimum payment of 5% of their total outstanding balance promptly,’’ he added.

Sunday Star front-paged consumers rallying for credit card interest rates to be reduced to help them get out of debt.

There are 10.3 million cardholders in the country with total debt standing at RM22.8bil as of December last year.

“The reductions in interest rates should give rise to savings for all credit cardholders to better enable them to make the minimum payment.

“It is also envisaged that more Tier-I cardholders can now afford to plan to settle their outstanding amount in full every month,” Abdul Hamidy added.

He said the different incremental reduction in interest rates of 1.5% between Tier-III and Tier-II and 2.5% between Tier-II and Tier-I would also encourage prudent repayment habits and instil strong personal finance management.

“The revisions not only demonstrate a reasonable, responsive and dynamic Malaysian financial system but are also in line with the underpinning principle of the tiered interest rate scheme introduced last year, that is to encourage good repayment habits and financial discipline,” he added.

Credit risk costs, he added, was expected to climb in a worsening economic environment, but banks would be closely monitoring the situation in the months ahead.

“The public must still exercise great caution and control over personal spending and live within one’s means,” he advised.

Fomca secretary-general Muhammad Sha’ani Abdullah said although the reduced interest rates would help cardholders who had outstanding balances, “the numbers are still toosmall.”

“Muhammad Sha’ani suggested that banks allow cardholders to reschedule loans by converting their credit card balances to term loans with a 10% interest rate.

THE following is the media statement issued by the office of Duli Yang Maha Mulia Paduka Sultan of Perak, Sultan Azlan Shah, which was signed by the ruler’s private secretary, Col Datuk Abd Rahim Mohamad Nor:

Yang Amat Berhormat Datuk Seri Mohammad Nizar Jamaluddin was granted an audience by Duli Yang Maha Mulia Paduka Sultan of Perak Darul Ridzuan on Feb 4, to ask for his Royal Highness’s consent to dissolve the Perak State Assembly.

Yang Amat Berhormat Datuk Seri Mohd Najib Razak, Deputy Prime Minister of Malaysia, also requested for an audience with his Royal Highness in his capacity as the Perak Barisan Nasional chairman and consent was granted to be present before his Royal Highness on Feb 5.

Yang Amat Berhormat Datuk Seri Mohd Najib informed that the Barisan Nasional and its supporters, now comprising 31 state assemblymen, had the majority in the State Assembly.

On the order of the Duli Yang Maha Mulia to ascertain that the information given was accurate, all the 31 state assemblyman were to present themselves before Paduka Seri Sultan.

After meeting all the 31 assemblymen, DYMM Paduka Seri Sultan of Perak was convinced that YAB Datuk Seri Mohammad Nizar Jamaluddin had ceased to command the confidence of the majority of the State Assembly members.

DYMM Paduka Seri Sultan of Perak had also considered thoroughly YAB Datuk Seri Mohammad Nizar Jamaluddin’s application on Feb 4, 2009 for his Royal Highness’s consent to dissolve the Perak State Assembly.

His Royal Highness had used his discretion under Article XVIII (2)(b) of the Perak Darul Ridzuan State Constitution and did not consent to the dissolution of the Perak State Assembly.

YAB Datuk Seri Mohammad Nizar Jamaluddin was summoned to an audience with the Sultan to be informed of his Royal Highness’s decision not to dissolve the State Assembly, and in accordance with the provisions of Article XVI (6) of the Perak Darul Ridzuan State Constitution, DYMM Paduka Seri Sultan of Perak ordered YAB Datuk Seri Mohammad Nizar Jamaluddin to resign from his post as Perak Mentri Besar together with the members of the state executive council with immediate effect.

If YAB Datuk Seri Mohammad Nizar Jamaluddin does not resign from his post as Perak Mentri Besar together with the state executive council members, then the posts of Mentri Besar and state executive councillors are regarded as vacant.

This statement is issued with the consent of Duli Yang Maha Mulia Paduka Seri Sultan of Perak Darul Ridzuan.

POH: All 31 assemblymen forming a majority for the Barisan Nasional in Perak were interviewed individually by Sultan Azlan Shah and Raja Muda Raja Dr Nazrin Shah yesterday.

Sources said it was a brief audience for 27 BN assemblymen but a longer one for the three independent assemblymen and Bota assemblyman Datuk Nasarudin Hashim, who is back with Umno.

"The sultan wanted to make sure that the independent assemblymen and Nasarudin fully supported BN and would help form a stable state government," a source said.

The three independents are Jamaluddin Mohd Radzi (Behrang) and Mohd Osman Mohd Jailu (Changkat Jering), formerly of Parti Keadilan Rakyat, and Hee Yit Foong (Jelapang), formerly of DAP.

It is learnt that both an oral and written undertaking of support for the new state government and menteri besar was provided by the three assemblymen.
"The letters of undertaking were signed individually and submitted to the palace on Wednesday night," another source said.

"Obviously, the sultan is not taking any chances despite the apparently solid front. This will also be fair as the previous Pakatan Rakyat administration was also required to do the same."

Nizar's swearing-in as the 10th menteri besar in March last year was postponed twice due to the palace's doubts over whether the three parties -- the DAP, PKR and Pas -- could form a stable majority.

GEORGE TOWN: A schoolbus headed for SJK(C) Chung Hwa Confucian plunged into a river near the State Mosque in Air Itam at 7.20am, killing the driver.

Some of the 23 primary school pupils onboard sustained minor injuries and received outpatient treatment at the Penang Hospital yesterday.

It was the first day of school after the one-week Chinese New Year break.

It is believed that the driver, identified as Koe Joon Huat, 48, lost control of the bus when trying to avoid a car in front of him.

The bus crashed through a railing and plunged into Sungai Air Itam, about 200m from the school. The impact shattered the windscreen.

The children were fortunate as the river was only knee-deep, and escaped by crawling out through the broken windscreen.

Koe suffered serious head injuries and is believed to have died while on the way to hospital.

Pupil Lee Tzu Jun, 12, said she noticed that the driver had not been feeling well during the journey.

“I was seated behind him. He was coughing and spitting and nearly collided into the cars in front of us twice,” the Year Six pupil said.

Brendon Tan Chee Yong, 10, who suffered a nose bleed, said the children were screaming before the bus plunged into the river.

His mother Poh Su Mooi, 45, who was at the hospital, said she was grateful that her son had not suffered any serious injury.

“I received a call from the school authorities about 7.40am and rushed to the hospital,” she said.

Amelia Cheah, 10, sobbed uncontrollably after learning of the driver’s death.

“He was a very nice and caring driver,” she said.

Passer-by P.H. Tan said he alighted from his car on seeing the crash and pulled the pupils out to safety.

“I saw many people jumping into the river to save the children.”

George Town OCPD Asst Comm Azam Abd Hamid said Koe is believed to have suffered from a fit when the crash occurred.

He said three pupils received stitches for injuries while the rest were discharged after receiving outpatient treatment.

Edited From The Star 3 Feb 09

IPOH: The fate of the two PKR assemblymen – Jamaluddin Mohd Radzi and Mohd Osman Mohd Jailu – is now in the hands of the Election Commission.

Perak State Assembly Speaker V. Sivakumar handed over the disputed letters of resignation purportedly from the two men to the state election director Adli Abdullah at 8am Monday to seek a by-election for the two constituencies.

However, Election Commission chairman Tan Sri Abdul Aziz Yusof said a meeting would be held to discuss the validity of the letters signed by Jamaluddin and Mohd Osman.

Describing the situation as “delicate and unique,” he said a meeting with legal advisers and experts from the Attorney-General’s Chambers must be held before any decision was made.

He said that only when the validity of the letters was determined could the commission decide whether a by-election needed to be held or not.

“I was informed by the Perak commission director that there are two letters in his hands; one from the Speaker and another from the two assemblymen.

“We have to study the contents of the letters, refer to the Perak Constitution and study other laws before we can announce or decide anything,” he said yesterday.

Mentri Besar Datuk Seri Moham­mad Nizar Jamaluddin had an audience with the Sultan of Perak but refused to speak to the press when he emerged about 30 minutes later.

This fuelled speculation that he might have sought the Ruler’s consent to dissolve the state assembly and have a state election but this was denied by other Pakatan Rakyat leaders.

Jamaluddin, when asked by The Star late yesterday about his earlier statement that he would quit PKR and become an independent, said: “Things are quite chaotic at the moment. It will settle down in a few days.”

Mohd Osman, through a representative, lodged a police report at the Shah Alam police headquarters to state that he did not tender his resignation as a state assemblyman last evening.

Leaders of component PR parties held closed-door meetings on their own.

After meeting DAP elected representatives here yesterday, state senior exco member Datuk Ngeh Koo Ham said that the Perak Legislative Assembly had accepted the two men’s resignation letters.

“We deem the letters as true and genuine until proven otherwise. We are ready for the by-elections,” he told reporters when responding to questions on the validity of the letters.

He refused to comment on whether all Perak DAP assemblymen had signed similar letters after the elections.

“We did sign some documents but I have to look at the contents first,” he said.

Meanwhile, the state was still rife with speculation that crossover talks had intensified.

Sources said that Barisan Nasional was wooing three more Pakatan elected representatives and in return Pakatan was targeting two Barisan assemblymen.

They said that PKR de facto leader Datuk Seri Anwar Ibrahim, in a meeting with state Pakatan leaders yesterday, said he was still in touch with two Barisan representatives.

Edited from The Star 3 Feb 09

 OPEN season for defections was declared in Perak when Bota assemblyman Datuk Nasarudin Hashim switched to the Parti Keadilan Rakyat on Jan 25. Far from bolstering the state government's hold on power, the move eventually left it tottering on the verge of collapse.

The Pakatan Rakyat majority in the state assembly was never stable in the first place, so that the euphoria of Nasarudin's move was quickly eclipsed by rumours of the impending counter-defections of PKR state exco members Jamaluddin Mohd Radzi and Mohd Osman Mohd Jailu.

For Pakatan leaders in Perak, it was a disastrous start to the Year of the Ox as they searched frantically for the duo, who could not be contacted since the second day of the lunar new year.

Sensing trouble, PKR de facto leader Datuk Seri Anwar Ibrahim issued a statement, carried by a Chinese daily, saying he would like to meet them at a party function in Bota last Friday.

Both did not turn up at the event, snubbing Anwar in the process.
Such was the level of anxiety that Perak Menteri Besar Datuk Seri Mohammad Nizar Jamaluddin was forced to call an emergency meeting of PR leaders at his residence on Sunday before openly pleading with the two to come out of hiding and declare their party allegiance.

Prior to this, he had been steadfast and even told the media that he had spoken to Jamaluddin and Osman over the phone on Friday, which he vehemently denied doing two days later.

With no word from the two by Sunday evening, Perak Speaker V. Sivakumar announced their resignations as state assemblymen.

After a fuming Jamaluddin denied submitting his resignation to Sivakumar and claiming that all seven PKR assemblymen had been forced to sign undated quit letters, senior exco member Datuk Ngeh Koo Ham came to the speaker's defence.

He said the decision by Sivakumar to declare the seats vacant was final and binding.

"The letters are deemed as true and genuine until proven otherwise. The two assemblymen have already admitted to having signed the letters regardless of whether they were undated," he said.

The denials issued by Jamaluddin and Osman that they have resigned shows the various letters of undertaking and pledges of loyalty signed by all 31 Pakatan Rakyat assemblymen in March last year to be unreliable.

Nizar's swearing-in as the 10th menteri besar was postponed twice as the palace had doubts over whether the three parties -- the DAP, PKR and Pas -- held a firm majority in the state assembly.

Swept up by their unexpected victory in the general election, the Pakatan parties were able to obtain in record time the signatures of their assemblymen in a written undertaking to work together.

As a lawyer, Ngeh insists that the pre-signed resignation letters by Jamaluddin and Osman could not be disputed.

"All documents signed in escrow are acceptable by law. When you sign something, you know what it is about and the law is all about putting into effect your intentions."

He agreed, nevertheless, the state government was far from stable.

As the biggest party in the tripartite governing alliance, the DAP should be first to walk the talk and ask for the assembly to be dissolved for failing to keep its end of the bargain with the palace.