Malaysia Update

WASHINGTON (Reuters) - President Barack Obama may set a one-year deadline to close the controversial U.S. prison at Guantanamo Bay, Cuba, according to an unsigned draft executive order that may bolster the U.S. image abroad.

"The detention facilities at Guantanamo for individuals covered by this order shall be closed as soon as practicable, and no later than one year from the date of this order," the draft said.

RELEASE, PROSECUTE, TRANSFER

About 250 men are still held at the U.S.-run naval base in Cuba. Washington has cleared 50 for release but cannot return them to home countries because of the risk they would be tortured or persecuted there. Around 500 others have been freed or transferred to other governments since 2002.

Edited From The Star 22 Jan 09

KUALA LUMPUR: Bank Negara cut its benchmark interest rate by a record 75 basis points yesterday and also reduced the statutory reserve requirement (SRR) in a move to lower borrowing costs.

The central bank said it had reduced the overnight policy rate (OPR) from 3.25% to 2.5% and reduced the SRR from 3.5% to 2% effective Feb 1.

“With the heightened downside risks to growth, the magnitude of the reductions in the OPR and the SRR are aimed to be pre-emptive in providing a more supportive monetary environment for the domestic economy,” it said in a statement. Other points in the statement included:

> Urgent implementation of policy measures crucial to ensure positive growth.

> Inflation continued to decelerate to 4.4% in December. Deceleration expected to continue with weaker demand and lower imported inflation.

> The Malaysian banking system remains fundamentally sound.

> Focus is to ensure access to credit to all sectors of the economy.

Meanwhile, the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) said the proposed second stimulus package must focus on the manufacturing and construction sectors to avert more retrenchments.

ACCCIM president Tan Sri William Cheng said the stimulus plan must be implemented quickly as the two sectors would be the most affected by the global financial crisis during the first-half of this year.

He also called for a reduction in prices of gas and electricity and a reduction in employers’ contribution to the Employees Provident Fund from 12% to 9%.

Edited from The Star 22 Jan 09

SHAH ALAM: Menteri Besar Tan Sri Abdul Khalid Ibrahim is in trouble over the purchase of 46 cows.

Gerak Malaysia (Civil Movement Against Corruption) claimed that Khalid had bought the cows, worth RM110,400, with state government money. The cows, bought before Hari Raya Aidiladha, were distributed in Khalid's parliamentary seat, Bandar Tun Razak, which is not in Selangor.

The movement yesterday lodged a report with the Malaysian Anti-Corruption Commission.

Gerak Malaysia chairman Mohd Nazree Mohd Yunus said the movement received evidence in the form of an official receipt and invoice from an officer who worked at a state government subsidiary involved in the purchase.

The official receipt and invoice were from Selangor Agricultural Development Corporation (PKPS), which stated Selangor Industrial Corporation Sdn Bhd as the payer in the receipt and invoice, both dated Dec 16.
"The flow of state funds out of the state border for personal advantage is against the principle of accountability preached by the state government."

He said the transaction was also against state finance procedures.

Apart from lodging a report with the Selangor MACC, Gerak Malaysia plans to request an audience with the Sultan of Selangor to ask him to advise Khalid to step down from his position, or take a temporary break, until he is proven innocent.

Edited from NST 22 Jan 09