[BUNGARAYA] Prevent Increase In NPL (fwd)

["M.G.G. Pillai" <pillai@mgg.pc.my>]

---------- Forwarded message ----------
Date: Mon, 06 Mar 2000 11:00:26 +0800
From: DAP MALAYSIA <dap.malaysia@pobox.com>
Reply-To: bungaraya@listserv.net-gw.com
To: bungaraya@listserv.net-gw.com
Subject: [BUNGARAYA] Prevent Increase In NPL

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Speech by Dr Tan Seng Giaw, DAP National Vice-Chairman and MP for Kepong at
the Annual Convention of the DAP Negeri Sembilan in Seremban on 5 March 2000

Please Impose Effective Measures To Prevent The Increase In Non-Performing Loans
==============================================

Although the Democratic Action Party, DAP, did not do so well in the last
general elections on 29 November 1999, we still have substantial support. We
should get rid of our weaknesses and improve our strength so that we can
continue to play our part in the wellbeing of Malaysia. 

The retabled 2000 Budget totals RM 78 billion and the revenues only RM 61.8
billion. We hope the Government will explain how it intends to find the
money for the over RM 17 billion deficit. 

The Government mentions the mergers of banks into 10 groupings to face the
World Trade Organization, WTO, liberalisation policy in the near future. We
do not know how exactly will these banks be merged and how efficiency and
competitiveness can ensue. 

The Government would like to ensure that banks, despite mergers, continue to
give lending facilities at low interest rates to stimulate the economy. We
hope that there are effective measures to prevent an increase in
non-performing loans. 

Determined efforts needed to achieve housing targets 

In the Seventh Malaysia Plan, 1996 to 2000, public sector housing target is
230,000 units with 110,000 low-cost and private sector 570,000 units with
240,000 low-cost. By the end of 1998, the government built only 83,408
units, 36.3% and the private sector 319,535 units, 56.1%. The public sector
low-cost target was 60,000 units and only 26,774 were completed, 44.6%. 

Clearly, the public sector is relatively less efficient. We do not know
whether all the housing targets will be met by the end of 2000. There are
signs that the Government would need to buck up to meet the targets and to
ensure the qualiy. 

The original plan is to let the people buy or rent houses. But, since the
economic crisis in 1997, the National Economic Consultative Council, NECC,
has directed the National Housing Department to build 35,000 integrated
low-cost units through the City Hall in the Federal Territory of Kuala
Lumpur. Apparently these units will be for renting and not for sale. This is
a disappointment for those for wish to own a house. 

We hope the Government will overcome the difficulties such as inadequate
planning and management so as to meet the housing targets, especially the
low-cost units. Let the people have a choice as to whether they want to buy
or rent. 

Please make the manufacture of national car, Proton, healthy and competitive. 

Since the advent of the national cars, Proton, the Government insists on the
people feeling proud of Malayisan ability to build cars while it gives
direct or indirect subsidies. It is not wrong to feel proud of our ability,
but it will be wrong not to reveal the truth. Hitherto, essential engine
parts are imported from Japan. We should make sure that essential parts are
manufactured locally. 

Under the protection of the Government, people within and outside Malaysia
can buy much cheaper Proton cars. Naturally, sales shoot up within the
country. How long can this go on? 

The World Trade Organization, WTO, prescribes liberalisation policies for
trade and industry, including automobile industry in the near future. How
are we preparing to face it? Can we compete? 

Proton has downstream industries such as accessories, affecting related
industries such as banking and thousands of people. Hence, any movement in
Proton causes public concern. 

Since October 1998, Petronas, our national oil company, has been planning to
buy Proton for which Hicom Holdings Bhd owned 27.2% equity. Last week
Petronas bought these shares for RM 1 billion. Why does Petronas buy Proton? 

We hope that after the take-over, Petronas will take care of the public
interest by getting rid of the suspected irregularities in Proton management
such as cronyism. Instead, it should make Proton more efficient and
competitive in the midst of globalisation in trade and industry. 

- Dr Tan Seng Giaw -


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