Minimum wage saga continues..

WE refer to the letters written by Samsuddin Bardan of the Malaysian Employers Federation (The Star, Sept 30), the Secretariat, National Wages Consultative Council (The Star, Oct 2) and Peter Raiappan (The Star, Oct 27) on the issue of minimum wage.

Come January, most of us will be concerned as to whether the minimum wages as previously announced by the Government will be enforced on our service industry e.g. security guards, waiters in hotels and restaurants or other workers in similar industries that require them to work 24 hours, including Sundays and public holidays.

In the case of security guards, it must be noted that most of these guards work 30 days a month as opposed to most regular employees who work 26 days.

The guards in particular will have to work the extra four days to claim the four days overtime payment (in addition to the daily four-hour overtime) to obtain that extra cash for a take-home salary of more than RM1,000 a month.

The security service employers are indeed in a dilemma.

Besides the overtime payment, the security companies will have to fork out additional expenditure such as the “post allowance” to the guards particularly for those assignments which are located in isolated places, transport allowance to guards for the use of their own transport, and not to mention the “attendance allowance” as an incentive to compel the guards to avoid unnecessary absenteeism. There are also cases where a “laundry allowance” is given to ensure that the guards are in their most presentable uniforms while on duty.

All this amounts to additional unavoidable costs to the security companies.

We, the security operators, are most concerned about the take-home salary of the guards and not just the basic salary of RM900 a month (less EPF and Socso deductions).

This is precisely why we encourage the security guards to work 12 hours (with four hours overtime payment daily) for them to earn the extra cash. Even the Nepalese guards that we employ work the 12 hour shift for the same reason.

We believe that even if we compel the guards to work for only eight hours a day, I am sure they will find some other part-time job to earn the extra cash during their time off.

This may not be healthy as they will most likely be too tired to effectively perform their duties as security guards in their regular assignments.

This may even result in them skipping work, which is worse.

Security guards are posted everywhere in the country. They are not stationed in one place like the factory workers.

Some people may not be too concerned about security but the role of these guards should not be taken for granted.

They are important in our society to prevent crime amidst the worrying level of crime in the country lately.

We are indeed in a dilemma whether we can continue to sustain our security service industry in the face of the above-mentioned escalating operating costs if the Government insists on proceeding with the minimum wage of RM900 requirement.

We therefore, urge the Government to exclude the security service industry and other similar industries from the implementation of this RM900 minimum wages scheme due to the extra costs to be incurred from the additional four hours of daily overtime work.

They also work during public holidays and Sundays.

These will incur extra double overtime which in return their take home pay is more than RM900.

We hope the Government to consider our appeal seriously to postpone the implementation of the new salary scheme which is due on Jan 1.

It is for the good of the security service industry and for the economy in general.

By DATUK RAHMAT ISMAIL Hon Life President (International) Asian Professional Security Association - The Star Nov  28, 2012

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U.S. Treasury Sticks It To The China Haters

Treasury says it again, China  not manipulating its currency.

This is getting better and better.

On the market side, the China haters are looking more and more ridiculous. Not that I’m a China bull. I’m not smart enough to say that. And I have money in China. But I am smart enough and am surrounded by even smarter people who have led me to believe there is no hard landing.  So on the market side, the China naysayers are wrong.

On the political side, the China haters who think the country is stealing all our Nike shoe and Optimus Prime assemblying jobs thanks to their currency manipulation are also wrong. For the second time this year, the U.S. Treasury Department said in its report to Congress on international economic and exchange rate policies that, wait for it…China is not a currency manipulator.  The two or three guys advising Mitt Romney on China were wronger than Tim Tebow starting as QB for the Jets.

“The Treasury Department once again made the right call on China’s currency policy in its report to Congress. Labeling China a currency ‘manipulator’ would do little to help us reach the goal of a fully convertible currency and market-driven exchange rate for China,” said John Frisbie, president of the U.S. China Business Council, a lobby of multinationals working in China.

“Adding the very public ‘manipulator’ tag might simply produce pressure within China to slow down progress on this (forex) issue,” he said in a statement Tuesday.

China’s exchange rate has strengthened over 30 percent against the dollar over the past several years. The upshot is that the exchange rate has little to do with the U.S. trade balance or employment. Even as the renmimbi weakened, the U.S. trade deficit with China worsened.

Of course, not being a currency manipulator doesn’t mean that the renmimbi (RMB) is properly valued.

From the report:

The renminbi has appreciated by 9.3 percent in nominal terms and 12.6 percent in real terms against the dollar since June 2010. China’s trade and current account surpluses both have fallen to 2.6 percent of GDP from peaks of 8.8 and 10.1 percent of GDP, respectively.  The Chinese authorities have substantially reduced the level of official intervention in exchange markets since the third quarter of 2011, and China has taken a series of steps to liberalize controls on capital movements, as part of a broader plan to move to a more flexible exchange rate regime.  In light of these developments, Treasury has concluded that the standards identified in Section 3004 of the Act during the period covered in this Report have not been met with respect to China. Nonetheless, the available evidence suggests the RMB remains significantly undervalued, and further appreciation of the RMB against the dollar and other major currencies is warranted.” China’s real effective exchange rate (REER) – a measure of its overall cost-competitiveness relative to its trading partners – has appreciated since China initiated currency reform in mid-2005, after declining between 2001 and 2005. From July 2005 to October 2012, China’s real effective exchange rate appreciated by 27 percent. The REER appreciated particularly rapidly in the last several months of 2011, resulting in total REER appreciation of 6.2 percent over the course of 2011. Over the ten months of 2012, China’s REER has been unchanged.

The International Monetary Fund concluded that the RMB was moderately undervalued against a broad basket of currencies, and said that the RMB was undervalued by between 5 and 10 percent as of July 2012.

Reserve accumulation, an indicator of the degree of Chinese intervention in the currency market, has slowed markedly since the third quarter of 2011 as China buys less U.S. debt.

Even with the reduced pace of dollar accumulation, China’s official foreign exchange reserves remain exceptionally high compared to those of other economies, and well beyond established benchmarks of reserve adequacy. As of end-September 2012, the PBOC held $3.3 trillion in foreign reserves, equivalent to 42 percent of China’s GDP, or about $2,440 for every Chinese citizen. 

10 Things “The End of Cheap China” Means for You

Getty Images North America

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Your espresso will get more expensive . . .

China, traditionally a tea-drinking nation, is now Starbucks’ largest market outside of the U.S., and the company plans to have more than a thousand cafés in the country by 2015. The Chinese middle class’ growing taste for premium coffee is causing commodity prices to soar; in 2011 Arabica bean prices hit their highest peak in over three decades, and analysts attributed that to fast demand growth in China as well as in Brazil and Indonesia.

By Kenneth Rapoza, Forbes Contributor

Covering Brazil, Russia, India & China.

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PAS messes up religion and politics again: Making one's hair stand!

  In a difficult position: Shoppers walking outside one of the unisex salons in KB Mall.

Datuk Takiyuddin Hassan's recent remarks about salons make us wonder if he has anything between the ears'. How then can he not know that PAS is messing things up in a respectable industry. 

DATUK Takiyuddin Hassan should be invited by hair stylists for a visit to their shops the Kelantan state executive councillor has no idea what he is talking about. To put it bluntly, he is talking rubbish.

He doesn't need to have a hair cut or a hair wash but simply observe the operations at a hair salon.

And sir, it is hair salon and not hair saloon. There is no drinking or entertainment of any kind.

A hair salon is different from a girlie barber shop, that's another point you should be aware of.

On Sunday, the PAS assistant secretary-general defended the PAS state government's decision to enforce gender-segregation rules on unisex salons, prohibiting women from cutting the hair of men, and vice-versa.

He said: “It is a well-known fact that hair salons and unisex establishments are the most convenient places for immoral activities.

“They provide a cover for men and women to engage in illicit activities. If I were a Chinese, I will never allow my wife to patronise such salons or even consider allowing my children to work in such places because of their reputation as a hotbed for immoral activities.

“And even a Chinese wife will feel uneasy to allow her husband to go to such places. Frequently such places will always lead to scandals.”

Like many Malaysians who read these remarks yesterday, I really didn't know whether to cry or to burst out laughing.

Many of us go to hair salons for hair cuts simply because, unlike barbers, these hair stylists are properly trained.

Many invested in diploma courses in famous training schools in London, Paris, Hong Kong and Bangkok.

We don't expect Takiyuddin to know what “a layer cut” is.

Huge sums of capital have been invested into their hair salons and many well-known hair stylists have turned entrepreneurs by setting up chains of hair salons nationwide.

These hair stylists work hard on their reputation, of which PAS may not be aware of, but clients are selective in their choice of hair salons.

Takiyuddin has no idea what he is talking about. We wouldn't blink an eye if our family members have their hair cut at hair salons - by a male or a female stylist.

And most of us have family members or friends who work at hair salons and we are proud of their skills and creativity. They make many Malaysians look good with their professionalism and abilities.

It is even more humorous when Takiyuddin said that “when a woman worker gives upper body massages to a male customer, one thing will eventually lead to another, ending with illicit activities”.

Hello, the nearest massage one gets at a hair salon is a neck-and-shoulder massage.

And from where Takiyuddin is coming from, he and his party leaders will surely shut down spas when they come to power.

Since male stylists cannot cut the hair of females and vice-versa, will we see PAS banning women doctors from treating male patients?

So if Takiyuddin suffers a heart attack while he is giving a press conference, will he wait for a male doctor to come, even if there is a female doctor nearby?

Next, women flight attendants won't be serving Takiyudidin when he is flying because it can lead to many things, what with their smiles and the uniforms they wear.

The hair on my hands are already standing on end just reading what Takiyuddin has reportedly said.

COMMENT By WONG CHUN WAI

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Leading hairstylist slams ‘Jurassic’ rule

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Don’t pay the summonses, salons told

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China now capable to deploy jets on aircraft carrier

Video: China conducts flight landing on aircraft carrier CCTV News - CNTV English

China has successfully conducted flight landing on its first aircraft carrier, the Liaoning, naval sources said.

A new J-15 fighter jet was used as part of the landing exercise.

After its delivery to the People's Liberation Army (PLA) Navy on Sept. 25, the aircraft carrier has undergone a series of sailing and technological tests, including the flight of the carrier-borne J-15.

Capabilities of the carrier platform and the J-15 have been tested, meeting all requirements and achieving good compatibility, the PLA Navy said.

Since the carrier entered service, the crew have completed more than 100 training and test programs.

The successful flight landing also marked the debut of the J-15 as China's first generation multi-purpose carrier-borne fighter jet, the PLA Navy said.

Designed by and made in China, the J-15 is able to carry multi-type anti-ship, air-to-air and air-to-ground missiles, as well as precision-guided bombs.

The J-15 has comprehensive capabilities comparable to those of the Russian Su-33 jet and the U.S. F-18, military experts estimated.

Successful aircraft landing exercises on China's first aircraft carrier mean the country is now capable to deploy fighter jets on the carrier, a senior navy officer said Sunday.

Pilots have mastered key skills to ensure the success of the take-off and the landing, especially under unfavorable conditions such as poor visibility and unstable airflow, said Vice-Admiral Zhang Yongyi, a deputy commander of the Chinese People's Liberation Army (PLA) Navy.

"It's like 'dancing on a knifepoint' as the aircraft have to land on a very limited space," Zhang said while commenting on the successful flight landing recently conducted on the carrier, the Liaoning.

The aircraft must land precisely over a very short and narrow runway on the carrier at a speed of several hundreds of kilometers per hour, Zhang said in an interview with Xinhua Sunday, after the J-15 fighter succeeded in the landing tests.

"We have done all these test flights from the very beginning, and finally we mastered the key skills for the landing of carrier-borne aircraft," said Zhang, who is also the commander-in-chief in charge of the tests and training program of the flight landing.

Currently, the Chinese pilots have found out the right ways to conduct the landing and they have consolidated their skills, according to the Navy officer, who himself is a meritorious pilot of the Chinese naval air force.

Zhang said the carrier-borne aircraft and special equipment for the landing flight have gone through strict tests, and fighter jets can be deployed on the aircraft carrier.

Penang's economy growth declines to 1.8% in 9 months 2012

GEORGE TOWN: Penang’s economy slowed down in the first nine months of the year, said Deputy Finance Minister Datuk Donald Lim.

“The state’s Gross Domestic Product (GDP) growth of about 5.7% in 2008 has dropped to 1.8% from January to September this year.

“The poor GDP record has put Penang, which used to record one of the highest growth rates in the country, in seventh position behind places like Kuala Lumpur and and Johor,” he said.

Lim said Johor recorded a GDP growth of more than 6%, exceeding the national average of 5.3%, adding that 1.8% was below average and the Chief Minister (Lim Guan Eng) had to answer for this.

“By right, Penang should be doing very well as many people are flocking to the state which has a service-skilled workforce.

“I’m surprised that Penang has done so poorly,” he said at the Malaysian Economy and 2013 Budget Economic Forum at a hotel here Saturday .

Asked why the Penang economy recorded such a slow growth, Lim quipped, “Probably he (the Chief Minister) didn’t work hard enough!”

“Perhaps his methods and direction are wrong or that he didn’t do enough homework. Maybe he is too busy with other things.

“I’m not saying that he’s not doing his job, this is for the rakyat to decide,” he said.

Lim added the Ministry of Finance was forecasting the last quarter of the year to record a GDP of about 5.2%.

He assured Malaysians that the country’s economy was not headed towards bankruptcy as speculated by certain quarters.

“We have a RM456bil debt as of last year but our revenue is RM881bil, and we incur a deficit of about 58.2%.

“Our economy is doing much better compared to our Asean counterparts such as Singapore which has a deficit of 107%. Even countries like the United States and those in European Union are suffering from a higher debt.

“Malaysia practices an open economic policy and as of Oct 15, our foreign reserve has reached RM424bil, making us the 19th biggest foreign reserve country in the world,” he said.

The forum, organised by the MCA Bukit Gelugor division, was attended by some 300 people comprising Barisan Nasional division leaders, community leaders and businessmen.

Also present were Penang MCA deputy chairman Datuk Dr Loh Hock Hun, Bukit Gelugor MCA division chairman Datuk Koay Kar Huah and Komtar Barisan co-ordinator Loh Chye Teik. - The Star

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