Monday, January 28, 2008
Limit access to credit cards, Government urged
The Star Online
January 28, 2008 – Monday
PETALING JAYA: The Government should impose tighter regulatory controls on banks and financial institutions to limit the accessibility of credit cards, the Muslim Consumers Association of Malaysia said.
Its project director Noor Nirwandy Mat Noordin said the problem of overspending by credit card owners was acute and action should be taken by the Finance Ministry and Bank Negara to control the issuance of the cards.
He said the problem was compounded by financial institutions not issuing proper information on the terms and conditions such as penalties for late payments, especially to those who were having the cards for the first time.
“The public, especially the younger and newly employed workers, are taken in by credit card ownership as a culture rather than a necessity.
“More people are easily owning three or more cards each, which contributes to their financial difficulties later on when they settle down to have a family.
“We have received reports of couples who divorced because they have lost control of their credit card expenditure.”
Noor Nirwandy also said that financial institutions were guilty of unethical practices of offering “free credit cards” and “affordable interest rates” to lure consumers to get a second card. He suggested that the Government organise financial equity management education for credit card owners to prevent them from being tempted to overspend.
Meena Raman of the Consumers Association of Penang said credit cards should not be easily available.
“There should be regulations emphasising minimum salary requirements and the number of credit cards a person can own to prevent abuse.
“Banks and companies are pushing people to have credit cards. The Government should intervene to prevent their uncontrolled use.” She said credit card debts could lead cardholders to borrow money from loan sharks to make repayments or cause domestic violence.
Federation of Malaysian Consumers Associations secretary-general Mohd Sha’ani Abdullah said consumers must be prudent in their spending.
Promotions offering 0% interest for six months for credit card holders had also misled consumers and encouraged them to spend more, he said.
Both Mohd Sha’ani and Meena agreed that the idea of offering debit cards to children as young as 12 was not a healthy trend.
Thursday, January 24, 2008
National stockpile in the works Form a Price Commission instead, says Fomca Llew-Ann Phang and Giam Say Khoon PUTRAJAYA (Jan 23, 2008): Severely ch
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PTG Perak perlu batal tawar hadiah
PTG Perak perlu batal tawar hadiah
KUALA LUMPUR 23 Jan. - Tawaran hadiah kepada mereka yang membayar cukai tanah oleh Pejabat Tanah dan Galian (PTG) Perak perlu dibatalkan segera kerana ia boleh menjejaskan kredibiliti serta imej perkhidmatan awam negara.
Setiausaha Agung Kongres Kesatuan Pekerja-Pekerja Di Dalam Perkhidmatan Awam (CUEPACS), Ahmad Shah Mohd. Zain berkata, apa yang cuba dilakukan oleh PTG Perak hanya menunjukkan kegagalan agensi itu menguatkuasakan undang- undang sedia ada bagi mengutip cukai secara optimum.
Beliau berkata, PTG negeri tersebut wajar membatalkan segera tawaran itu bagi mengelakkan timbul persepsi negatif, khususnya daripada rakyat terhadap sebuah agensi kerajaan.
''Kutipan cukai tanah berkait rapat dengan pelaksanaan undang-undang. Mengapa PTG Perak tidak mengenakan tindakan terhadap mereka yang tidak mahu membayar cukai?
''Mengapa perlu ada tawaran hadiah melalui cabutan bertuah untuk menggalakkan mereka bayar cukai? Laksanakan sahaja undang-undang sedia ada dengan mengenakan tindakan kepada mereka yang enggan membayarnya (cukai),'' katanya kepada Utusan Malaysia di sini hari ini.
Beliau mengulas langkah PTG Perak yang menawarkan pelbagai hadiah termasuk sebuah kereta Perodua Kancil melalui cabutan bertuah kepada mereka yang membayar cukai tanah bagi tempoh 1 Januari hingga 31 Mac ini sempena Kempen Pembayaran Cukai Tanah 2008 di negeri berkenaan.
Ahmad Shah berkata, apa yang lebih dikesalkan lagi, sudah tentu wang peruntukan menyediakan hadiah-hadiah tersebut diambil daripada dana awam.
''Ini melibatkan pengurusan dana awam atau dalam erti kata lain, ia adalah wang rakyat. Kita tidak harus sewenang-wenangnya membelanjakan wang ini. Ini soal ketelusan, amanah dan kredibiliti sesebuah agensi kerajaan.
''Setiap sen yang keluar daripada dana itu akan dipersoalkan. Adakah ia memberi faedah kepada semua orang atau segelintir sahaja yang merasainya,'' katanya lagi.
Nada yang serupa turut disuarakan oleh Setiausaha Agung Gabungan Persatuan-Persatuan Pengguna Malaysia (FOMCA), Muhammad Sha'ani Abdullah yang turut menentang langkah yang diambil oleh PTG Perak tersebut.
''FOMCA melihat langkah PTG Perak menawarkan hadiah hanya memperlihatkan kelemahan agensi itu menguatkuasakan undang-undang. Mereka gagal menjalankan tugas dengan berkesan.
''Keadaan itu telah menyebabkan mereka terpaksa mencari satu jalan mudah untuk menggalakkan pemilik tanah membayar cukai. Bagi kami ini bukan satu amalan yang sihat dan perlu dibendung segera,'' katanya lagi.
Beliau berkata, FOMCA khuatir jika amalan seperti itu dibiarkan, satu hari nanti ia akan merosakkan fikiran rakyat Malaysia.
Form a Price Commission instead, says Fomca
National stockpile in the works
Form a Price Commission instead, says Fomca
PUTRAJAYA (Jan 23, 2008): Severely challenged by spiralling global oil prices that has driven national subsidies to beyond RM40 billion, the government today announced it has established a high-powered National Price Council (NPC) to ensure the people get sufficient supply of essential goods and at stable prices.
Deputy Prime Minister Datuk Seri Najib Abdul Razak told a news conference here the council will be chaired by Prime Minister Datuk Seri Abdullah Ahmad Badawi and represented by a number of relevant ministries.
The ministries are Domestic Trade and Consumer Affairs (secretariat); International Trade and Industry; Agriculture and Agro-based Industries; Plantation Industries and Commodities; Finance; Energy, Water and Communications; and Transport.
An expert advisory committee chaired by former executive director of Malaysian Institute of Economic Research Datuk Dr Kamal Salih will assist the council in deliberations and to give its input on measures that will be taken.
Other members in the committee include representatives from the National Chamber of Commerce and Industry, Federation of Malaysian Manufacturers, Federation of Malaysian Consumer Associations (Fomca) and Malaysian Trade Union Congress (MTUC).
Najib said the NPC has agreed in principle on several initiatives. They are:
> National stockpiling of selected essential goods like cooking oil, flour, rice and sugar to help stabilise supply and prices. The advisory committee will help draw up a list of goods to be stockpiled.
> The set up of a National Call Centre that will operate 24 hours to gather feedback from consumers on unfair and unusual price increases, difficulty in getting supply of goods and related problems. There will be a toll-free line for the people to use which will be announced once details have been finalised.
Najib, who is the deputy chairman of the council, said details of these initatives and other steps will be announced after the inaugural meeting of the NPC expected to be held soon after Abdullah returns from the World Economic Forum in Davos, Switzerland.
Abdullah is expected back on Jan 28.
The continuing increase in prices of consumer items, aside from those which are subsidised, has been a challenge to the government since it allowed several rounds of fuel price increases in a bid to manage a burgeoning subsidy purse that kept prices of fuel and other essential items and services low. Leakages through smuggling also posed big problems.
Although the Consumer Price Index, which indicates the rate of inflation, is at 2.4% - thanks to the subsidies - prices of items other than those in the CPI's basket of goods have yielded complaints from consumers used to stable prices. It is this dissatisfaction - and public safety issues - which the opposition parties are tapping into for votes as the country gears for the general election.
The new CPI is expected to be announced tomorrow.
Asked if the NPC's work will result in an increase in the number of goods placed under price control, Najib said it is up to the council if this is necessary to deal with situations when they arise.
He said the NPC is a comprehensive step to ensure the consumer and the rakyat enjoy stable prices and is a follow up to the affirmative actions taken by the government to reduce inflation rate.
"The NPC is a reasonable effort because we have monitored the people's reaction and we found that many feel that comprehensive action needs to be taken to control the price of goods," he said.
Najib added the low inflation rate in the country was a reflection of the government's positive efforts.
"However, people feel that more comprehensive action must be taken. Hence the need for a NPC and the creation of a national stockpile," he said.
Kamal, when approached after the announcement, said the committee would conduct studies, including on the oil price increases.
"We will make our recommendations then because this issue affects subsidies in the long run. The subject of subsidies also has to be studied carefully as it is a very complex issue," he said.
Kamal said the committee will also look into fuel becoming a part of the national stockpile.
Form a Price Commission instead, says Fomca
PETALING JAYA (Jan 23, 2008): In welcoming the government's new initiative to help ensure stable supply and prices of consumer goods, the national consumer movement has counter-proposed the formation of an independent commission to handle pricing issues.
Federation of Malaysian Consumers Associations (Fomca) president Datuk Marimuthu Nadason said a price commission will have the independent authority to undertake review of prices of goods based on public feedback from time to time, and will be fully managed by civil society.
He said Fomca had proposed the price commission 10 years ago.
Marimuthu was asked for his comments on Deputy Prime Minister Datuk Seri Najib Abdul Razak's announcement today of the establishment of a National Price Council (NPC), chaired by the prime minister, which will come out with measures to stabilise supply and prices of essential goods.
Among the steps it would take is the national stockpiling of such goods, and the set up of a national call centre to get public feedback.
Arguing for a commission, Marimuthu said: "If manufacturers want a price hike, they can submit their petition to the commission and the commission will advertise to get the people's feedback.
"After that, the commission will decide on a win-win situation for the manufacturers and consumers," he said in a phone interview.
On the stockpiling, Marimuthu said the government can set up a government-linked-company to do this.
"This company can keep the goods for four to six months and whenever a supply shortage happens, the goods can be used to overcome the insufficient supply problem," he said.
Marimuthu said that because of the subsidy on cooking oil, the market price is so low that it encouraged smuggling.
He proposed that subsidy be given to the poor people in the form of cash, as in a welfare state.
"This is the best way of subsidy and the welfare department can play the role of disbursing the money to the people's accounts monthly," he added.
Pahang Consumers Associations president Muhammad Sha'ani Abdullah also supported the proposal of a commission, saying that there is already a National Consumer Advisory Council.
He said a commission would have the force of law, and suppliers will be obliged to answer to it.
Updated: 08:29PM Wed, 23 Jan 2008
Monday, January 21, 2008
Muhammad Sha'ani Abdullah New Fomca CEO
Malaysian National News Agency
Muhammad Sha'ani Abdullah New Fomca CEO
General
January 21, 2008 21:27 PM
Its president Datuk N. Marimuthu said today that Muhammad Sha'ani would be responsible for Fomca's day-to-day operations and report to the president, as well as handling the media statements.
"With Fomca's role in policy development and advocacy via representations it the various ministries and government agencies increasing, we hope the appointment will inject human capital development in Fomca in facing the needs and demands of the time," he said in a statement.
Prior to his appointment, Muhammad Sha'ani served the Felda Group of Companies for 23 years in various fields, including research and development, marketing and senior management. He has been involved in the consumer movement for over 20 years starting with the Pahang Association of Consumers (PAC).
Marimuthu said Fomca's former chief executive Datuk Indrani Thuraisingham had been appointed head of the Consumer International Kuala Lumpur office, which is responsible for the Asia-Pacific region.
-- BERNAMA
Monday, January 07, 2008
The Sun : Parents bear brunt of weak allocation system
Parents bear brunt of weak allocation system
Llew-Ann Phang
newsdesk@thesundaily.com
PETALING JAYA: Problems over school fees collection stem from the Education Ministry’s failure to provide sufficient allocations for school maintenance and other matters like security.
Commenting on a problem that has made headlines in the last week, the Pahang Consumers Association (PAC) said the ministry must identify and overcome the root of the issue through vetting the various fees schools charge parents.
"The ministry should also set clear guidelines on such collections, besides forbidding schools from displaying the name list of students or parents who did not pay non-compulsory fees," said PAC president Muhammad Sha’ani Abdullah in a statement.
He said parents now foot part of the bill for school maintenance, a result of a weak system, especially in the ministry’s department which handles planning and allocation applications for school operations.
"Previous experiences have seen toilets in schools taking up to two or three years to be repaired due to the lack of funds but this has not served as an example to the school administration in the drawing up their annual budgets.
"These administrators dare not take the issue of lack of funds to the education department and take the easy way out by ‘forcibly’ collecting monies from parents," Muhammad Sha’ani added.
These issues, he said, will not come up at any other government department as they do not have other ways of getting money for the maintenance of buildings, replacement of equipment or furniture, upgrading of facilities or even the security service.
"No department would even collect fees for these from their customers or consumers," he said.
Although the subject of school fees has irked parents all along, it has become more of an issue this year because of earlier expectations raised by the government’s budget announcement to abolish school fees of RM4.50 for each primary school pupil and RM9 for each secondary school student.
Instead of paying less, parents found that they had to pay the same amount as previous years, and sometimes even more.
Such fees, which are not standard, cover miscellaneous items like contributions to the school’s Parents-Teachers Association (PTA), building maintenance, computer usage, orientation sessions, school badges, additional books and sports attire. The additional school fee charges are usually drawn up by the school and its PTA with reference to the ministry’s guidelines.
The guidelines mention three main packages – A for schools with a majority of parents being professionals, or run successful businesses; B for schools with parents mostly made up of traders or civil servants in the support group and C for rural schools with parents mostly comprising self-employed workers, petty traders or plantation workers.
The ministry’s guidelines only state a minimum charge of RM38.50 for Package A, RM30.50 for Package B and RM23.50 for Package C for primary schools while the secondary schools have advised annual charges of RM55.50 for Package A, RM44.50 for Package B and RM33.50 for Package C.
The school and PTA are allowed to add on to the list of fees stated if they feel it appropriate. And this is where the problem occurs.
Education Minister Datuk Seri Hishammuddin Hussein had said that such fees are not compulsory and those who could not pay in a lump sum could do so in installments. His statement backfired when some quarters asked for their fees back.
