Friday, October 16, 2015

Datuk Johari Abdul Ghani said Nation’s conscience speaks1MDB Is Not Political Problem but a Corporate Problem

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A setback for parliamentary sovereignty 
There  complete political unanimity.,  of being unanimous; a consensus or undivided opinion

In esteem, for his key role as  meaning as it unfolds in its complexity, as society’s conscience. Those who man the levers of the state would do well to pay heed to the sense and sensibility our  convey, through their writings, their utterances and, at times, through their silence. To ignore what they say, by focusing on the manner in which Najib say it in the present case —would be a grievous mistake, apart from being complete arrogance. The black face of intolerance is what the nation sees today, and the arrogance of power that disdains society’s conscience.
Najib is facing intense pressure as a result of RM2.6 billion deposited into his personal accounts by an unknown Middle Eastern donor, as well as various probes conducted on his brainchild, state investment firm 1Malaysia Development Berhad (1MDB) due to alleged financial impropriety.
I won’t allow country to be destroyed
Prime Minister Datuk Seri Najib Razak today pledged not to allow those who are in cahoots with local and foreign elements to destroy the country, following the arrest and charging of two individuals who had lodged reports in foreign countries over troubled 1Malaysia Development Berhad (1MDB)
A more open political system alone will not be enough to fix our Problem It is not difficult to understand the source of these sentiments.This phenomenon leads to rising economic inequality and sinking middle-income classes over time. There are multiple causes behind it. politics in the rich and developed nations have not alleviated these problems because the time horizons of politicians in democratic societies are often too short to implement significant policies, and most societies in the West are configured to make state governing institutions weak.I am not questioning the superiority of democracy, but as a political arrangement for safeguarding and promoting competing public interests, there is much room for improvement. As Winston Churchill famously said in 1947, "Democracy is the worst form of government, except for all those other forms that have been tried from time to time."If we fail to end political gridlock, Hong Kong will not arrive at democracy through compromise and rational discourse. Democracy will not be attained through peaceful means. Violence certainly will not bring democracy; it can only bring.

1MDB fund’s difficulties have handed Mr Najib’s critics an easy target.That something is the fact that not everything can be solved politically.  That our problems don’t necessarily come from any policies or laws our country has enacted. That something is the fact that we as a nation have forgotten how to introspect.  We’ve gotten so used to trying to look outside of ourselves to fix our problems that we’ve ignored the fact that sometimes it’s simply the way our nation thinks that is hurting it. I’m referring specifically to the anger that has begun to grip our country.  When one opens one’s eyes, it can be seen everywhere.
Najib said that the Auditor-General himself will look into 1MDB and the results will be given to the Public Accounts Committee, which includes staunch critics of 1MDB such as (Petaling Jaya Utara MP) Tony Pua,"  Datuk Johari Abdul Ghanitold reporters after the meeting. 

 Malaysiakini can creative democracy’s online – where Tony Pua can look cute:

 The most obvious place to look is the internet. On the internet, fights seem to occur on every public forum.  Look at the nasty rhetoric on blogs, comments, and even simple places like recipe websites.  Places like YouTube have become known for being havens for anger.These sorts of decisions, and this sort of introspection and discussion, rarely happens in our country. After so many attacks, all we can do is watch our 24 hour news channels and talk about the same tired policy changes. And our leaders, the people who are supposedly interested in changing our country for the better, haven’t the guts to start any real discussion.  They are just as distracted as the rest of the country.  Focused on solutions that aren’t there and dividing us along the same old political lines. If our country wants to survive its anger, wants to grow and evolve, and prevent further killings we need to stop with the imaginary divisions our politicians and pundits have created for us.  We need to create a true dialogue that goes beyond definitions and discussions that involve the big policies and laws of the country. We need to look within ourselves as a culture.  Examine who we are and how we’ve created this poisonous culture. Only then will any true change ever happen. will speed up winding up companies and ease the burden on high courts. It will have to supervise or appoint trustees to supervise the working of companies that obtain protection from creditors’ claims while they turn around within a stipulated period of time. The government should remove the legal hurdles

 Malaysia will use its state funds to put a floor under the country's battered stock market, though currency intervention and interest rate hikes are ruled out as tools to keep sharp falls in the ringgit in check, its deputy finance minister said.

The world's second-largest exporter of liquefied natural gas has been hit by the collapse in global crude prices that added to the pains of an economy grappling with mounting household debt.

Foreign investors have trimmed exposure to Malaysia, causing its stock and bond prices to tank. Its currency, down 16 percent this year, remains vulnerable to further falls against the dollar as the U.S. Federal Reserve eyes raising interest rates.

Asked whether state investment funds are ready to prop up slumping domestic stock prices with purchases, Johari Abdul Ghani said: "Yes, our state fund is quite big right now, in the sense we always have ample space" to absorb any sell-off by foreign investors.

"Every year these (domestic) pension funds are getting new funds almost close to 40-50 billion ringgit ($9.7-12.0 billion), so I think there is enough for them to continue buying while waiting for external factors to improve," he told Reuters on Saturday during his visit to Lima for the World Bank and International Monetary Fund meetings.

Malaysian markets may face a temporary setback from an expected U.S. rate hike but if the Fed wanted to raise rates, it would have to do so quickly as markets "don't like uncertainty" on when it will happen, Johari said.

The government has started welcome work to make it easier to wind up troubled businesses. We need to provide room for a swift turnaround or redeploy the assets in failed firms and resolve bad loans, denying unscrupulous promoters a chance to enrich themselves at the expense of the creditors. The government should introduce US’ Chapter 11-type provisions for troubled companies, where there is no mismanagement or fraud. It will help these companies recover if they are able to recover or quickly liquidate and redeploy assets, if they fail.A company placed under Chapter 11 gets an automatic stay to hold on to assets, run the business and control the bankruptcy process. An automatic stay offers the promoter time to examine the viability of a turnaround. Of course, the key is a finite window of opportunity to recover, failing which the company is liquidated immediately. Both General Motors and Chrysler turned around after the US government placed them under bankruptcy. However, unlike in the US, Indian laws allow for an indefinite respite, resulting in misuse. This must change. Many infrastructure projects in India are stuck, leading to a surge in bad loans that is crippling the banking system. Banks cannot lend more to defaulting borrowers. The way out is for banks to convert their loans into equity. Both promoters and banks should take a haircut to lower inflated project costs. Promoters should be asked to go and a new management brought in. The switch of bad loans into equity will clean up banks’ books and the new projects under the new management will qualify for fresh credits. Projects will then revive. Banks should also be allowed to do acquisition financing. .
Asked whether state investment funds are ready to prop up slumping domestic stock prices with purchases, Johari Abdul Ghani said: "Yes, our state fund is quite big right now, in the sense we always have ample space" to absorb any sell-off by foreign investors.

Our financial system is very solid compared to 1997-1998," when Asia suffered from a financial crisis. "I think we're ready to face the headwindthe government will liquidate assets of heavily indebted state fund 1Malaysia Development Berhad (1MDB), including its energy and property investment, by early next year that will raise enough funds to avoid a bailout.
These areas which need the priority attention of the government include improvement in infrastructure and the ease of doing business, greater transparency in policy, a uniform tax regime and supporting tax administration, improvement in labor laws and skills, easing of investment limits for better dispute resolution mechanisms

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