Wednesday, May 14, 2008

Proton no longer enjoys special protection, says PM

Proton no longer enjoys special protection, says PM
At the Dewan Rakyat update 3

(MalaysiaInsider)KUALA LUMPUR, May 13 — Prime Minister Datuk Seri Abdullah Ahmad Badawi said there was a no longer a special protection policy for national car maker Proton.

He was replying to a question from Hee Loy Sian (PKR-Petaling Jaya South) at the Dewan Rakyat today on how long the government would continue to provide Proton protection.

Abdullah said that the government had taken various efforts to raise the competitiveness of the country's automotive industry through its National Automotive Policy such as the provision of incentives and grants as well as technical training with the help of strategic international partners.

Such training has been enjoyed by all in the industry including Proton and Perodua, he said.

"Through the Industrial Adjustment Fund, exemption from excise tax, depending on the level of investment made in Malaysia by the producer of the car, is offered to all car makers whether they are local companies, foreign or joint ventures. Therefore, there is no longer a special protection policy for Proton," he said.

At the same time, the government has also started in stages to liberalise the country's automotive industry, Abdullah said.

Under the Asean Common Effective Preferential Tariff (CEPT), the import duty for a completely built-up (CBU) vehicle was reduced to five percent effective Jan 1, 2007 and for a completely knocked-down (CKD) unit, the import duty was abolished also on Jan 1 last year.

2,607 complaints to PM

Abdullah said he received 2,607 complaints up till April 24 this year via website www.warkahuntukpm.com.my.

He said of the total, 1,196 (46 percent) complaints were resolved and the balance of 1,411 were being acted upon by the respective ministries.

"The total number will change as the website is still open to the people to channel their problems," Abdullah said in a written reply to a question by Lim Lip Eng (DAP-Segambut).

The interactive website "Letter for the PM" was launched last March as a channel for the people to forward their views and problems to the government on current issues.

Abdullah said the Public Complaints Bureau was given the responsibility to monitor and ensure that each complaint was attended to by the agency concerned.

New anti-graft commission not run by Parliament

The proposed Malaysian Anti-Corruption Commission will not be placed specifically under Parliament's jurisdiction. Minister in the Prime Minister's Department Datuk Seri Mohamed Nazri Aziz said under the commission's structure, an independent anti-corruption advisory board and a parliamentary committee on anti-corruption would be set up.

He said members of the board would be notified by the commission on corruption cases involving public interest to enable the board to monitor and make further enquiries and recommendations.

"The commission will table its annual report to the parliamentary committee on anti-corruption, thereby ensuring transparency and effectiveness of the commission in executing its functions. This will create elements of accountability in every decision taken," he said in reply to Teo Nie Ching (DAP-Serdang) who wanted to know whether the Anti-Corruption Agency would be free from the jurisdiction of the Prime Minister's Department.

To a question from Teo on why the commission was not given the power to prosecute, Mohamed Nazri said the Federal Constitution spelled out that such a power came under the ambit of the Attorney-General.

To a question from Lim Kit Siang (DAP-Ipoh Timur) on the prime minister's jurisdiction over the commission, Mohamed Nazri said prosecution was entirely decided by the Attorney-General.

Petronas paid RM26.8b royalties

Petronas paid out a total of RM26.839 billion in royalties to the Federal Government and the state governments of Terengganu, Sabah and Sarawak for the financial years ended March 2004 till March 2007.

Minister in the Prime Minister's Department Senator Datuk Amirsham A. Aziz said the royalty paid to the Federal Government was RM13.420 billion, Terengganu RM7.364 billion, Sabah RM1.234 billion and Sarawak RM4.821 billion.

He also said the country's crude oil reserves and condensate were expected to last 22 years while the gas reserves 39 years.

"Although it looks like the reserves period is long, the reality is the country is also importing oil and gas to partly cater to local demand. Therefore, the country is expected to become a net importer of energy in the near term, projected to be by 2014," he said in reply to Datin Seri Wan Azizah Wan Ismail (PKR-Permatang Pauh).

On Petronas’ contribution or royalties to the states, he said they were paid according to the formula that had been fixed, which is five per cent or half of the royalty received by the Federal Government.

Amirsham said the prices of petroleum and gas products exported by subsidiary companies of Petronas are based on world market prices while in the domestic market, the prices of products sold such as gas to the electric sector and non-electric sector are partly fixed by the government.

Petronas recorded a total revenue of RM165.3 billion from the sale of petroleum and gas products for the financial year ended March 31, 2007.

To a question on whether the government had agreed to pay Sarawak a royalty rate of 20 per cent for oil from new fields, Amirsham said as at this point the government had no plans to review the royalty.

Strong private consumption

The government is confident that private consumption spending will continue to be strong and capable of balancing up the country's economic growth this year amid reduced exports.

Deputy Finance Minister I Datuk Ahmad Husni Hanadzlah said the government had put in place various measures to retain the contribution from private sector spending to economic growth.

Among the measures are a low interest rate environment, the provision of easier credit access to support household spending and increasing the income of civil servants by between seven and 35 per cent.

It has also relaxed Employees Provident Fund regulations to enable monthly withdrawals for members from their Second Account to pay back their housing loans, Ahmad Husni replied to Raime Unggi (BN-Tenom).

Ahmad Husni said the government had also taken measures to diversify its sources of economic growth so that it would not be too dependent on exports.

He said private consumption grew by 14 per cent in the third quarter and by 11.1 per cent in the fourth quarter of 2007.

The average growth of private consumption last year, at 11.7 per cent, was higher than the average growth of 8.2 per cent seen during the Eighth Malaysia Plan period, he said.

Friendly ties

Penang Chief Minister Lim Guan Eng (DAP-Bagan) wants to forge better ties with the federal government, saying a harmonious relation will go a long way in strengthening the state's economic development.

"A harmonious relation will not benefit the DAP in any special way but it will allow every Malaysian in Penang to enjoy the fruit of development," he told the Dewan Rakyat.

He urged ministers to be more open in handling issues in states under th Pakatan Rakyat and to always ensure that the interest of the people had been taken into consideration before making any decision.

He said the Pakatan Rakyat government had no other motives apart from wanting to help the people through the implementation of a balanced economic development that was free from abuse, corruption and wastage.

Lim hoped that existing federal projects or ventures, especially those that had a bearing on the people's well-being, would be continued in the five states under Pakatan Rakyat. — Bernama

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