ARTICLES

The Star : Board reviewing plans for higher public transport charges

1970-01-01T00:00:00+01:00

PUTRAJAYA: New fares for all types of public transport will be announced in the second half of next year, according to Commercial Vehicle Licensing Board chairman Datuk Markiman Kobiran.

He said the board, which has been given the mandate to review fares imposed by public transport services, was studying various proposals from all parties in the industry that have been submitted to it.

“We are looking at the middle or third quarter of 2008 for new rates to come into effect. The public can be assured that the people's interests and well-being will not be abandoned,” he told reporters after closing a refresher course for temporary bus drivers yesterday.

Public transportation companies have been pressing for higher fares, claiming escalating operational costs due to fuel price increases over the years.

Markiman said a taxi operators' association was asking for a 600% increase in fares while an association representing bus operators was to raise fares by 100%.

He said the review process was ongoing and that while public transport industry associations could submit new fare proposals it did not necessarily mean that their exact requests would be met.

“We will allow an increase but we will have to be practical and realistic. The public need not worry that taxi fares will be up by 600%. That will not happen,” said Markiman.

“While we review bus and taxi fares, we also have to ensure that efficient services are provided, including the comfort of vehicles and skilled drivers.

“Public transport companies cannot be allowed to increase fares without committing to better services. We agree with the revision but we expect that, with the new rate, operators will become prudent and more responsible.”

The last review of public transport fares was made in 2005, and Markiman said that while the normal practice was for the review to be made every five years, the Entrepreneurial Development and Cooperative Ministry had decided to do the review earlier.

The Star : Melamine ware safe to use, say producers

1970-01-01T00:00:00+01:00

PETALING JAYA: Food or drinks served in melamine ware are safe for consumption, said producers outraged by claims that melamine products are hazardous to health.

Denouncing the allegations, the Malaysian Plastics Forum said melamine wares are made of materials containing formaldehyde and had been tested for safety.

“Melamine ware products meet stringent standards for food and beverage contact materials,” said the MPF, quoting an endorsement by the US Food and Drug Administration (FDA).

The group was responding to a report in The Star on Monday that quoted the Consumers Association of Penang as warning the public against using melamine tableware.

CAP claimed that regular ingestion of melamine, also known as thermo set plastic, could lead to cancer, skin allergies and blindness.

MPF said the news report had needlessly created fear among the public by suggesting health concerns that were not scientifically supported.

“The FDA adopts very high standards relating to health and safety and employs stringent tests to ensure that each item approved by the FDA complies with their standards.

“The health and safety of consumers is of paramount importance when considering materials to be used in packaging that would come into contact with food and beverage,” the MPF added in a statement here yesterday.

To further emphasise its point, it referred to several tests that met the specifications of the Standards and Industrial Research of Malaysia (Sirim) and similar authorities in Taiwan, the United States and Japan.

The Star : 'Scratch and win' firms raided

1970-01-01T00:00:00+01:00

PUTRAJAYA: It was game over for two direct selling companies that allegedly drew consumers to their “scratch and win” scams.

A total of RM50,450 worth of goods were seized from the companies in Cheras and Kajang on Tuesday, following complaints by consumers that they had been fleeced by the companies.

The goods seized by Domestic Trade and Consumer Affairs Ministry enforcement officers included sewing machines, water purifiers, microcomputer stoves, vacuum cleaners and home theatre headphones.

Other items were a motorcycle, slimming belts, massage chairs and foot massagers.

Representatives of such companies usually approach prospective “winners” at their homes, shopping outlets and highway rest areas, offering them to scratch pieces of well-designed papers that depict the kind of gifts they could own.

However, the catch is they would have to first agree to put up a certain amount for the gifts.

The sum paid is usually higher than the cost of the goods that await the winners.

The ministry’s direct selling unit director, Ahmad Md Isa, said that in the recent cases in Cheras and Kajang, the complainants alleged they were asked to pay about RM7,000 to see their gifts.

Ahmad said that despite the many cases of people being cheated by such “scratch and win” scams over the years, there were still many victims.

TELL MAGAZINE : Truly, Madly, Deeply in Debt

1970-01-01T00:00:00+01:00

As credit cards play an increasingly pivotal part in our lives, we’ve seen a growing trend in debt among the old, and worryingly, among the young and newly working graduates. MICHELLE GUNASELAN takes a step back and looks at how simple things like credit referencing and financial planning are affecting our lives in a big way.

"Darshan Singh, the Director of the National Consumer Complaints Council (NCCC) agrees with educating the current graduates about prudent financial management, but is currently dealing with the problem of credit referencing organisation - CTOS Sdn. Bhd., for which he has received an alarming number of complaints including young graduates."

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Bernama : Beware Of Hari Raya Sales Gimmick

1970-01-01T00:00:00+01:00

KUALA LUMPUR, (Bernama) -- Aidilfitri is around the corner and for some people, spending big for this festive occasion is a must. For them, celebrating Hari Raya without having a new sofa set or state-of-the-art electrical appliances would not be 'complete'.

In fact, many are willing to spend extravagantly to acquire branded household items for their homes.

However, this rather negative habit has paved the way for unscrupulous companies to take advantage of the festive occasion by coming out with sales gimmicks to lure shoppers.

And as Aidilfitri gets closer, these traders have resorted to a war of gimmicks, coming out with advertisement slogans like 'price crash', 'lowest ever price' and 'best offer'.

INSTALMENT SCHEMES

For those who could not afford to pay in one lump sum, not to worry as there are various instalment schemes to help them pay for the goods they want.

This is a very popular alternative way for those who have been dreaming to buy certain items but could not do so due to their financial limitations.

However consumers who subscribe to this method of payment should be aware of several pitfalls.

In some cases, the goods are of inferior quality and do not commensurate with the high asking price.

After a mere several months of use, the unfortunate consumers would be flabbergasted after finding that their merchandise breaking down due to its inferior quality.

More frustrations ensued after it was discovered that the price under the instalment scheme was several folds higher than the actual cash price at the other outlets selling similar merchandise.

Hence, the series of payments have not even reach its halfway mark but the goods are already marked for the dumpsite. These unfortunate consumers have nobody else to blame, except themselves.

PAYING MORE

National Consumers' Complaint Centre's (NCCC) director Darshan Singh fired a broadside -- that consumers would end up paying more than the actual cash price if they decided to subscribe to the instalment schemes when making purchases.

He said consumers should understand that paying by instalments, the 'interest' would be incorporated into the price of the goods, hence jacking it up.

"In such transactions, the word interest is cleverly camouflaged or never mentioned, but the bottomline is that it jacks up the price. So the consumers should be aware of certain tactics used by traders to hoodwink them".

Another word of caution from Darshan, consumers should be wary of traders who are lurking behind slogans like 'easy payment' and 'interest-free'.

He advised consumers to compare prices first apart from checking on the goods' quality before making their pick.

"Do not allow advertisements to influence your decisions and do not rely on them for details on goods or services. It is better to look for other sources for the information," he said.

Darshan said spending some time to find out more information on certain products before making a purchase is wise.

If there are too many doubts, then abandoning the thought of making a purchase via the instalment scheme would be a wise idea.

EXERCISE CAUTION

Darshan said unscrupulous companies would have an array of marketing strategies to lure consumers to make purchases.

He said if consumers decided to use the instalment scheme then they should exercise caution and not be overwhelmed by their desire.

"Gauge your own capability. In many cases, there are those who went beyond their financial means. For example, don't buy a RM16,000 plasma television set where you can afford a 16 inch set.

"If you can't pay and your name get black-listed, who is to complain against?" said Darshan.

INADEQUATE COVER

Darshan said the existing instalment schemes do not provide adequate protection for consumers.

"Companies are free to offer instalment schemes and these schemes are not covered by the Hire Purchase Act 1967.

"What we need is the Consumer Credit Act like what is being practised in the United Kingdom to control all consumer credit transactions," he said.

He also advised consumers to exercise caution when offered easy payment schemes via credit cards.

Under such schemes, the trading firms have the collaboration of banks for the funding of purchases for certain products.

"Via this scheme, the purchases are made via the bank's credit car. The instalment period covers from nine months to one year. If the purchasers delay in making payments, then they will be imposed the interest on their credit card," Darshan said.

COMPLAINTS TO THE NCCC

So far this year, the NCCC has received 42 complaints from consumers on the instalment payment schemes. The number was 55 in 2006.

The majority of the complaints are on faulty products, warranty period, unfair repossession as well as no replacement for faulty goods and unfair blacklisting by credit referral companies.

According to Darshan, education is crucial for consumers' protection.

"If the consumers are still having the notion that consumerism issues are trivial, then they themselves would lose out. They would continue to be easy victims by parties who are out to manipulate them," Darshan said.

Consumers who wish to lodge complaints with the NCCC can call 03-7877 9000 or visit 'www.nccc.org.my'.

-- BERNAMA

by Melati Mohd Ariff

President, FOMCA

1970-01-01T00:00:00+01:00

The Federation of Malaysian Consumers Associations (FOMCA) strongly dissents the government’s decision to implement the ‘full-paying patient’ scheme in public hospitals this coming August. While we agree in principle that there should be better remuneration for government doctors and healthcare staffs, semi-privatizing government hospitals should not be considered as a solution to quell the problem.

Private hospitals generate its profits from an exhaustive list of services that it provides, ranging from services (surgical procedures, nursing, administrative) to usage of facilities and medication (lodging, use of equipment, drug dispensing) – whereby the charges set are beyond the means of many. The establishment of full-paying patient scheme will mostly likely emulate such a structure and also an indication of the growing movement to further privatize public healthcare.

At a glance, the full-paying patient idea seems novel and appealing, however, the latent underlying repercussions could bring forth serious implications for consumers especially those from lower income groups. There has been a perennial shortage of medical manpower in the country and current medical officers are very much overworked in the public sector. To date, less than 30% of specialist doctors are working in government hospitals catering for nearly 70% of the population who relied heavily on public healthcare. The addition of the full-paying patient scheme would outstretch the workload of specialist doctors; resulting in the drop of treatment quality and possibly endangering patients’ lives. The scheme is also vulnerable to abuse by unethical doctors who might take advantage to refer patients from his/her normal consultation/treatment time to private hours at private wings.

Apart from clinical burdens, government specialist doctors are also responsible for training postgraduate and surgical trainees within the institution. The scheme would divide the focus of specialists in balancing between providing training and private practicing; thus creating a conflict of interest. The quality and competency of future specialists will be severely affected and this in the long run would degrade the quality of public healthcare. With limited infrastructures and manpower in government hospitals, the scheme could lead to depriving poorer patients in second and third class wards and also reallocating medical facilities and allied health workers to cater for full-paying patients.

Some years back, as part of the government's corporatisation policy, government hospitals were directed to increase the rate of their cost recovery (at the time, patient charges at government hospitals contributed in total to about 5-10 percent of the hospitals' actual operational costs, i.e. government medical services were being subsidised to the extent of 90-95 percent).

In preparation for corporatisation, government hospitals were instructed to increase their cost recovery, so that the government could reduce its health outlays which would be preferentially allocated to the low-income, while ‘those who could afford to pay more should become less dependent on government subsidies’, or better yet, look to the private sector for their healthcare needs.

It is clear that our underfinanced government healthcare will become even less available to the poor when private wings are set up in government hospitals as human and material resources are reallocated to serve the dictates of the healthcare market rather than the needs of the poor. It is furthermore predictable that private wings will soon be encouraged to service the regional health tourism market as well. This will eventually spur deeper concerns when more and more of our local health resources are diverted to serving regional (and national) healthcare priorities as dictated by economic (market) demand, rather than on the basis of need.

A better option to curb the rising outflow of doctors is to raise their salary remuneration instead. Despite our growing economy, the national health budget stood at less than 3% of the GDP. A separate Service Commission for health could also be established to systematically review the remuneration of doctors and medical workers in public healthcare.

The indications are emerging that Malaysia’s once equitable healthcare system may disappear. We are witnessing the privatisation of various areas in the public healthcare system such as medicine procurement and supporting services. Privatisation will deny a majority of the population access to health care. As a developing nation, we should be heading towards better wealth distribution by providing equitable healthcare for the people; not regressing into a neo-liberal healthcare structure that is based on the ability to pay rather than the basis of need.

New toll rates by eight concessionaires from Jan 1

1970-01-01T00:00:00+01:00

By CHRISTINA KOH

IPOH: Malaysians can expect a 10% increase in toll rates, with eight concessionaires raising their charges from Jan 1 next year, said Works Minister Datuk Seri S. Samy Vellu.

However, he said the ministry was working on several proposals to spread part of the cost to the concessionaires and the Government.

“Rather than burden the people, we want to divide the load so the companies carry a bit and the people a bit.

“I will ask the Government how it can help in this situation,” he told reporters after launching a book on the Yayasan Strategik Sosial’s Plus 8 project here yesterday.

Asked how much would the toll hikes actually involve, Samy Vellu said the agreement had stated a 10% increase.

“I have submitted a preliminary proposal and explained to the Cabinet what it would actually cost, what the reaction of people will be, what we can do as a government, what the concessionaires can do as responsible companies and what else can be done,” he said.

Source: http://www.thestar.com.my/news/story.asp?file=/2007/10/1/nation/19043059&sec=nation

Scratch-and-win schemes

1970-01-01T00:00:00+01:00

KUALA LUMPUR: The end is near for scratch-and-win schemes. The Domestic Trade and Consumer Affairs Ministry wants to ban it.

(left)Datuk Mohd Shafie Apdal says money is often taken in advance. (right) Darshan Singh says directors of errant companies should be hauled up

Minister Datuk Mohd Shafie Apdal said most scratch-and-win transactions were scams and were of no benefit to the people.

“I have instructed my officers to look into the legality of banning it. They have to look into it from the legal, implementation and malpractice aspects.

“If it is proven that there is a basis for it to be banned, I will do it. I have a strong feeling it will be made illegal but it must be justified,” he told the New Straits Times.

Shafie's stand comes in the wake of an alarming number of cases across the nation of people being cheated of thousands of ringgit in scratch-and-win scams.

The high number caused the National Consumer Complaints Centre (NCCC) to propose a prohibition on the sale of products worth more than RM500 via direct selling. It had also called for scratch-and-win transactions to be made illegal.

Shafie said the NCCC's proposal was being considered.

“All this is part and parcel of what I've instructed my officers to look into. We are also looking at other aspects such as the type of products and verification from the Health Ministry.

“We want to make sure that all products sold through direct selling are safe for consumers.

“They take money from the consumer in advance before giving them the product.

“I want a comprehensive approach to the whole direct-selling industry,” he said.

Under Section 23(1)(b) and 25(4) of the Direct Sales Act 1993, no money can be collected in a direct sale transaction for 10 days from the date of the contract.

This is called the “cooling-off” period but many companies collect the money upfront.

The Consumer Claims Tribunal under the ministry and non-governmental organisations such as the NCCC have been inundated with complaints of this nature.

NCCC director Darshan Singh said anything sold from a place other than a fixed place of business, as well as phone calls inviting you to a place of business to entice you to enter a monetary transaction, fell under the term “direct selling".

This, said Darshan, covered time-sharing membership packages as well as scratch-and-win transactions.

“From the time of signing a direct sale contract, the vendor should not accept any money till the end of the 10-day period.

“But all of them accept money on the spot because they know their customers would have a change of heart if they had time to think the offer through. It's also because they know no action will be taken against them,” he said.

Even if the consumer waives his right to the 10-day period, money can only be collected after 72 hours from the date of transaction, according to section 25(3) of the Act.

Darshan said since the transaction was illegal from the start, the consumer was entitled to his money back.

“The worst part is that the transaction is concluded via credit cards and these transactions can only be cancelled by the merchant.

“So, the consumer cannot stop the transaction even if he has a change of heart.”

He feels directors of the violating companies must be arrested, charged and prosecuted.

“Usually, the offender is compounded a few thousand ringgit while victims are cheated on average of RM5,000 to RM6,000 per person. The compound fine is nothing to the offender who may have made millions of ringgit by then.

“If the offender has two or three violations, the Domestic Trade and Consumer Affairs Ministry revokes their licence. But these people would just register another company to carry on the same business.

“The act now is only used by the ministry to collect the charges imposed to issue licences and the compound fines collected for violations. Consumer protection has been neglected,” said Darshan.

Source: http://www.nst.com.my/Current_News/NST/Monday/Frontpage/20071001073924/Article/index_html

There's a boycott?

1970-01-01T00:00:00+01:00

It's business as usual for traders in Klang Valley markets, despite a call by Cuepacs and the MTUC for a nationwide consumer boycott over price increases of essential items.

Most traders and shoppers at the Taman Tun Dr Ismail market, Kuala Lumpur market and the Pasar Besar Jalan Othman in Old Town, Petaling Jaya, did not even know there was a boycott.

“There's a boycott?” asked Anita Matthews, 43.

“Even if the prices are high, we still need chicken, meat, fish, vegetables, oil and sugar. People will complain but they will still buy.”

Chicken retailer Anuar Abdullah, 41, said his business was not affected by the call for a boycott.
“It all depends on the consumers. If they feel the prices are too steep, it's up to them to boycott.”

Henry Zan was doing a roaring trade. By 10am yesterday, the chicken trader had sold all but four of the 100 birds he had in stock. He also only had five kampung chickens left out of 20.

Fishmonger Yap Kit Lee, 53, said he was still getting his usual crowd.

Meat vendor Yusuf Ismail, 47, wasn't too worried about the boycott because “people still have to put food on the table".

In Penang, most consumers seemed to reject the idea of a blanket boycott of the traders, and traders too were unperturbed by such threats.

At the Chowrasta wet market in George Town, housewife Zaliha Marul, 58, said she had no choice but to continue buying daily essentials.

A daily shopper at the market, she had become more prudent in choosing the stalls she bought items from.

Security guard Zaipul Idris, 30, however, backs the boycott against unscrupulous traders. “It's about time we taught them a lesson,” he said.

Fishmonger Shah Jahan Hassan, 46, said the unions should not call for a blanket boycott of all traders, but identify those who hiked prices and inform the authorities.

In Kuantan, the main wet market here was crowded as usual.

Teacher Sabariah Jamil, 43, said urging the public not to patronise retailers did not make sense, with most essential items were under price control.

“We need the goods anyway, especially with Hari Raya Aidilfitri approaching,” she said. “I feel the boycott is not a good move.”

Housewife Ngan Kim Chun, 63, said the boycott might have only a small effect in Kuantan, compared with bigger towns.

“Here, retailers sell their products at a much lower price, especially to regular customers,” said Ngan, who has lived in this town for 40 years.

Retailer Yusaini Arif, 37, was confident that his customers would remain loyal.

“This boycott will probably only affect those big supermarkets, but for us, business will remain the same as our products are fresh and our prices reasonable,” he said.

In Kuala Terengganu, grocery stall operator Mohamad Noor Ali, 56, said the boycott had yet to take effect as business at Chabang Tiga Market could not be better with Raya fast approaching.

“Prices of most items have gone up a little, but those buying half a kilo of onions or a couple of cloves of garlic certainly have better things to worry about,” he said

Protect the elderly from marketing scams

1970-01-01T00:00:00+01:00

LATELY, a new type of marketing has emerged, targeting rubber and small palm oil plantation proprietors.

With the pretext of giving free door gifts that are worth less than RM5, they entice the aunties into purchasing supplements, pillows or mattresses worth thousands of ringgit.

Their modus operandi is quite simple: lure innocent people into their rented shop house, give freebies i.e eggs, shampoo or toilet rolls before introducing their product with promises of wonders and miracle cures.

I am not against the free market and innovative marketing, but these people are actually robbing elderly people of their hard-earned money.

I urge the Government to stop them now.

4FEI,
Temerloh, Pahang.

NST - Told to pay 'duit kopi' by rubbish collector

1970-01-01T00:00:00+01:00

PETALING JAYA: A restaurant owner in SS3/31 claimed that he was told to pay more duit kopi by an Alam Flora contractor if he wanted his second rubbish bin to be cleared.

Loo Yong Wee claimed that two years ago, an Alam Flora contractor told him to pay RM50 if he wanted his "extra" garbage to be collected.

"He told me that he would only pick four bags of garbage a day and if there's extra garbage, I would have to pay RM50. Now he has increased the price to RM80 a month," Loo claimed.

Kampung Tunku state assemblyman Lau Weng San and restaurant owner Loo Yong Wee (right) looking at some uncollected rubbish.

"I was informed of the new 'rate' on June 2 by the contractor. I refused to pay any more and approached state assemblyman Lau Weng San for assistance."

Lau said that, "from the Alam Flora website, I found that the company engaged to collect rubbish in SS3/31 is City Waste Disposal Sdn Bhd."

He also expressed his dissatisfaction over the cleanliness of the drains in the neighbourhood, especially along Jalan SS 3/ 35.

"The drains are badly clogged and the residents are unhappy with Alam Flora," said Lau.

He said it was time for Alam Flora to review its contractors' performance.

"I will highlight this problem in the state assembly if there is no improvement."

Fuel price increases capped

1970-01-01T00:00:00+01:00

By MAZWIN NIK ANIS and SIM LEOI LEOI
PUTRAJAYA: There will be no further increase to the price of fuel in the country this year. This is despite the possibility of the global price of oil reaching US$200 (RM654) per barrel, as forecast by some analysts.

This latest decision by the Cabinet came on top of various measures announced on Monday to help the Government cut costs and channel more subsidies to low-income earners.

Prime Minister Datuk Seri Abdullah Ahmad Badawi said to stem any more increase, the Government would have to think of alternative ways to finance its spending.

“Since the Government announced the new price last week, fuel prices have gone up to US$139 per barrel and is still hovering at US$130.

“In fact, the price of oil is expected to remain at high levels in the months to come. The high price of oil means that the market price of petrol at the pumps have now reached RM3.45 per litre,” he said, pointing out that the price should be reviewed to RM3.15 per litre (with a discount of 30 sen) instead of RM2.70 beginning next month.

“However, the Government realised that the rakyat is still trying to adapt to the higher petrol prices. The Cabinet has thus decided there will be no more increase this year,” he told reporters at his office yesterday.

If the global price of petrol should ever drop, Abdullah said the Government would make the necessary adjustments with the 30 sen discount still being given.

When announcing the new petrol price on June 4, Abdullah had said that prices at the petrol pump would be adjusted monthly to reflect the global market price.

The current price for petrol is RM2.70 per litre while diesel is sold at RM2.58 per litre, following an increase of 78 sen and RM1 per litre respectively last week.

Abdullah said it had also been decided that the more than one million civil servants would receive their salaries fortnightly effective August.

“The first instalment will be in the middle of the month while the second will be at the end of the month. Deductions such as income tax and Employees’ Provident Fund will be made from the second instalment.”

It�s on, free water from June

1970-01-01T00:00:00+01:00

By EDWARD RAJENDRA

SHAH ALAM: Selangor residents will get to enjoy the first 20 cubic metres of water free after all from June now that the state government has agreed to conditions set by water concessionaire Syarikat Bekalan Air Selangor Sdn Bhd.

State investment arm Kumpulan Darul Ehsan Bhd (KDEB) and Syabas sealed the deal in just 50 minutes yesterday to resolve months of disagreement over the matter.

Mentri Besar Tan Sri Khalid Ibrahim said the issue was settled along a plan where KDEB would compensate Syabas RM1.8mil a month for the 1.1 million consumers to get that free water.

KDEB had earlier wanted to compensate Syabas after the water industry restructuring in September.

KDEB owns 30% of Syabas which has a 30-year concession to distribute water to consumers in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya.

Yesterday, KDEB president Datuk Abdul Karim Munisar, Syabas chief executive officer Datuk Ruslan Hassan and Khalid held a discussion where the terms and conditions were resolved.

On Monday, Ruslan had said in a statement that the company and the state investment arm KDEB could not agree on “terms and conditions” over how the free water was going to be compensated.

He added that Syabas could not accept KDEB’s offer to compensate the company for the free water in September after the proposed restructuring of water services in the state and wanted payment to be done in 14 days.

Further to that, he said the proposal would have adversely affected the water concessionaire’s cash flow and daily operations, so Syabas continued to charge for the first 20 cubic metres of water until it received favourable terms from KDEB.

Khalid said the cost of the free water would be borne by KDEB, the state’s business arm.

“You must understand that it is the first time such an endeavour is being done to give free water.

“So, there were certain terms that had to be clarified.

“We had to resolve the issue of how the billing would be carried out, the compensation issue and settlement of payment with Syabas,” said Khalid.

He added that there were three phases to the understanding with KDEB and Syabas.

“First phase is the billing exercise, the second is the restructuring of water industry in Selangor and the third is to restudy the allocation of funds and the water pricing as it had to take into account the change of economics,” he added.

Ruslan when met after the press conference said Syabas was in agreement with the understanding achieved in the 50-minute discussion.

“We will go ahead with the billing and consumers will receive their bills with the rebate,” he said.

NST - Fuel price hike: Subsidy still in force

1970-01-01T00:00:00+01:00

Datuk Seri Abdullah Ahmad Badawi and Datuk Seri Mohd Najib Razak
at the press conference to announce the increase in petrol and diesel prices.

Datuk Seri Abdullah Ahmad Badawi and Datuk Seri Mohd Najib Razak at the press conference to announce the increase in petrol and diesel prices.

PUTRAJAYA: The pump price for petrol is now RM2.70 per litre and diesel RM2.58 a litre following a cut in the fuel subsidy.

The increase of 78 sen per litre for petrol and RM1 a litre for diesel still leaves their prices 30 sen below the market rate.

Announcing the hike, Prime Minister Datuk Seri Abdullah Ahmad Badawi said a 30-sen subsidy per litre will prevail on pump prices, and will be used as an “automatic adjuster” in tandem with fluctuations in the world oil price.

The government will make the adjustments monthly.

To cushion the price increase, cash rebates will be given to owners of cars and motorcycles, based on engine capacity, through post offices from July 1.

These rebates will be given to owners of vehicles with road tax renewed between April 1 this year and March 31 next year.

Those who have already paid their road tax should produce their vehicle registration details at a post office and Pos Malaysia will issue them a money order.

Vehicles with large engine capacities will be levied a lower road tax from June 1.

The rebates will cost the government about RM5 million this year.

From today, the price of subsidised diesel will be standardised at RM1.43 per litre for fishermen, boat owners and transport operators.

Previously, subsidised diesel was priced at RM1 per litre for fishermen, RM1.20 for boat owners and RM1.43 for transport operators.

Prices for cooking gas (liquefied petroleum gas or LPG) and natural gas for vehicles (NGV) remain unchanged at RM1.75 for every kg of LPG and 63.5 sen for every litre of NGV.

This involves Petronas restructuring its gas subsidy from July 1 for the peninsula whereby it will raise gas prices for energy producers and industrial users.

The government will save RM13.7 billion from the restructured package.

Out of this amount, RM7.5 billion will go towards subsidising prices of petrol, diesel and gas.

The rest will be spent on food security (RM4 billion), cooking oil subsidies (RM1.5 billion), standardising the price of rice in Sabah and Sarawak (RM0.4 billion), flour subsidies (RM0.2 billion) and bread subsidies (RM0.1 billion).

Abdullah said even after the fuel price increase and restructuring, the government would still have to spend about RM18 billion to pay for the difference between the pump prices and the world price.

Reiterating his call for Malaysians to change their lifestyle and be more prudent, Abdullah said they should try to spend less in all areas.

“This is something that is happening all over the world. We are not lifting the subsidies totally as we are still subsidising petrol and other items like cooking oil.”

He said efforts were being made to improve the public transport system.

Acknowledging that the fuel price increase would not go down well with the public, Abdullah said the government could no longer sustain the rising price of oil.

“I am not out to be popular. We try our best, and this is something we are very serious about, but naturally people will not be happy.”

Fuel subsidy scheme

30 sen subsidy for petrol and diesel
Automatic monthly adjustment in petrol and diesel prices, in line with global prices
Annual cash rebate of RM625 for owners of private vehicles with an engine capacity of up to 2,000cc, and pick-up trucks and jeeps up to 2,500cc
Annual cash rebate of RM150 for owners of motorcycles with a 250cc engine or less
Road tax discount of RM200 for owners of private vehicles with engine capacities above 2,000cc
RM50 road tax discount for motorcycles with engines above 250cc
Fishermen, boat owners and transport operators will get diesel at RM1.43 per litre
Each Malaysian fishing vessel owner will receive RM200 monthly
Fishing vessel owners will get incentive of 10 sen for every kilogramme of catch landed

Where the RM13.7b savings will go

RM7.5 billion goes back as subsidies for petrol, diesel and gas
RM4 billion for food security
RM1.5 billion for cooking oil subsidies
RM400 million for standardising price of rice in Sabah and Sarawak
RM200 million for flour subsidy
RM100 million for bread subsidy

The Star - Petrol price up by 78 sen - and will be reviewed monthly

1970-01-01T00:00:00+01:00

Half empty or half full?: Azhan Sharom showing the difference of how much petrol one can buy with RM1 Wednesday and today at a petrol station in Kuala Terengganu.

PUTRAJAYA: The Government announced yesterday an increase in petrol and diesel prices, stating that it can no longer continue to subsidise fuel.

Prime Minister Datuk Seri Abdullah Ahmad Badawi said the new prices were still at a 30-sen per litre discount from market prices.

In other words, if the market price is RM3 per litre, Malaysians will be charged RM2.70 at the pump. He said the price would be adjusted monthly based on the global oil price.

“Malaysians still pay lower than the market prices as far as petrol is concerned,” he told a packed press conference when announcing the restructuring of the subsidy package.

Abdullah said that although the restructuring would result in consumers having to pay more, prices were still lower compared with Singapore and Thailand.

He said the Government would save RM13.7bil through the restructuring.

From the savings, he said RM4bil would go to the National Food Supply Guarantee Policy, RM1.5bil for subsidising cooking oil and RM400mil to subsidise rice imports to make the price uniform in peninsular Malaysia, Sabah and Sarawak.

The Government would also spend RM200mil on flour subsidy, RM100mil on bread subsidy and RM7.5bil was meant for contributions to the subsidies for petrol, diesel and gas.

On top of that, Abdullah said, the Government would have to fork out RM5bil to pay to owners of cars and motorcycles eligible for rebates introduced under the restructuring of subsidy package.

“Our effort is certainly not an attempt to be popular but we try our best to help the people. We cannot satisfy everyone,” he said.

Abdullah said demand for public transport would go up with the rise in fuel prices and the Government was currently addressing the need to improve services.

He reiterated that the public should make changes to their lifestyle, saying they must ensure there was no wastage in resources such as water, energy and food.

He said if certain adjustments were made, the public would not be “too badly affected by price increases”.

He said the hike in fuel prices would cause a projected increase in inflation of around 4% to 5%. It would also have an impact on the country’s gross domestic product (GDP) growth but was confident that it could be maintained at 5% this year.

Abdullah said the Cabinet committee on anti-inflation had to come up with a system to ease the public’s burden from higher fuel prices.

“What is important is that we want to ensure the restructuring will encompass a mechanism that will protect and benefit those in the lower and middle income group.

“We are truly committed in ensuring these groups will not be burdened by the increase in petrol and food prices,” he said.

Asked if the subsidy restructuring would result in Malaysians going to the streets to demonstrate their unhappiness, Abdullah was confident the people would not resort to that.

The Changes

Price increase

Petrol – RM0.78/litre
Diesel – RM1/litre
Electricity:
Commercial and industrial – 26%
Retailers and small restaurant operators – 18% (for first 200kWh per month)
Residential – new pricing structure for users above 200kWh per month

Prices effective today (per litre)
Petrol – RM2.70 (previously RM1.92)
Diesel – RM2.58 (previously RM1.58)

Rebates

RM625 per year
For private vehicle with engine capacity of 2000cc and below, including private pickup trucks and jeeps with engine capacity of 2500cc and below.
RM150 per year
For each private motorcycle with engine capacity of 250cc and below
RM200 reduction on road tax
For private petrol and diesel vehicles with engine capacity above 2000cc
RM50 reduction on road tax
For private motorcycles with engine capacity above 250cc

Streamlined diesel subsidy
(for approved transportation companies, vessel owners and fishermen)

Diesel – RM1.43 per litre (previously RM1 per litre for fishermen and RM1.20 per litre for vessel owners)
RM200 per month for every owner and employee of Malaysian-owned vessels registered with the Fisheries Department
10sen per kilo incentive for every kilogram of fish caught by registered vessels
10sen per litre for every litre of diesel used by river transportation operators according to approved quota

Gas subsidies restructure(for Peninsular Malaysia)

For power producers – from RM6.40 per mmBtu to RM14.31 per mmBtu
For industrial users (consuming less than 2mmscfd) – from RM9.40 per mmBtu to RM24.54 per mmBtu
For industrial users (consuming above 2mmscfd) – from RM11.32 per mmBtu to RM32.56 per mmBtu

Electricity tariff restructure

Households using 200kWh and below every month will not be affected. This covers 59% of households in Peninsular Malaysia with a monthly bill under RM43.60.
Commercial and industrial users face 26% increase. Small retail and business outlets consuming under 200kWh per month face 18% increase.

Liquefied Petroleum Gas (LPG) and Natural Gas for Vehicle (NGV)

> No change. Prices remain at RM1.75 per kg (LPG) and RM0.635 per litre (NGV)

Oil palm windfall tax

For Peninsular Malaysia 15% for every tonne of CPO exceeding RM2,000
Sabah and Sarawak 7.5% for every tonne of CPO exceeding RM2,000 > Abolition of cess tax

Service tax threshold for restaurants and eateries

> Service tax now for restaurants with annual sales of RM3mil (previously RM500,000)

Dear Consumers - Campaign on Complaints against Maxis Berhad

1970-01-01T00:00:00+01:00

You are invited to lodge complaints if you have a problem with any of the services provided by Maxis Berhad.

Please e-mail your complaint directly to me at darshan@nccc.org.my.

Alternatively you may also write in or call us at 03-78779000.

We consumers demand better service from Maxis your contribution is vital in ensuring that our voice is heard at top level.

Thank you

Darshan Singh
Director
National Consumer Complaints Center

Consumer Alert : ATM users be cautious

1970-01-01T00:00:00+01:00

Dear All,

I would like to share a real life story with all my friends and especially all my colleagues and all Maybank account holders.This incident happened on today evening (1 April 2008). I went to the

PJ State (Also known as PJ New Town) Maybank to withdraw RM500. Unfortunately for me, only 9 RM50 notes came out instead of 10. What happened was, one of the RM50 notes was folded exactly in half and placed at a corner of the stack (Please refer to the attached pictures showing how two RM50 notes can be counted as three).

was so upset because I have no proof that the ATM did not give me the correct amount. After much hesitation, I finally decided to call Maybank to complain about the incident knowing that I may not get back my money. But at least I can caution them of such incident.

When I told of my situation to the Maybank Customer Service Representative, to my surprise, I was informed that I'm not the first victim. It seems that similar cases have occurred before. The lady explained that it is the malfunction of the ATM and the money may accidentally get folded in half.

However when questioned, she was unable to explain to me why the money can be folded exactly in half and placed nicely in the corner of the stack.

I believe this is the new technique of cheating money, done by the people who are responsible of placing the money into the ATMs. In the stack of money which is to be placed into the ATM, one RM50 note is folded nicely in half, for every one note taken out of the stack of money.

The folded RM50 notes are then placed at the edge of the stack and positioned in the ATM where the money would be counted. With that done, every one folded note would be counted by the machine as two notes.

I may be wrong about how and why it happened, but I would like to warn everyone about this incident. Please be careful when withdrawing money from the ATM (it may happen to other banks as well) and do count your money to be sure. If such an incident really happened to you (*touch wood*), please do call up the bank to complain about this.

If everyone keeps quiet about this, the bank may be unaware of such incidents and the people responsible may just continue doing what they do without getting caught! Even if it is actually because of the ATM malfunctioning, the bank should know about this and there is also a chance of you getting your money back.

Proton to recall 34,000 Savvy cars

1970-01-01T00:00:00+01:00

PETALING JAYA: Proton is recalling 34,000 Proton Savvy cars following a possible wheel bearing problem.

It said in a statement that the problem was brought to its attention during a regular random check, which found the possibility of water entering the rear wheel bearing.

This could lead to a malfunction of the affected components, with loosening of the wheel as the worst-case scenario.

The national carmaker has advised all Savvy owners to immediately take their vehicles to the nearest Proton Edar or EON service branch for inspection.

Checks will be conducted and replacement parts installed (if required) free of charge.

The recall, however, is purely a precautionary measure, stressed Proton managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir.

“This is purely a precautionary measure to place priority on our customers’ safety.

“We are recalling all Savvys to ensure this, and we apologise for any inconvenience caused,” he said in the statement.

For queries, call Proton i-Care at 1-300-880-888 or contact your nearest Proton Edar Branch or EON service branch for an appointment.

Najib: Price of rice will not go up

1970-01-01T00:00:00+01:00

All set for listing: Najib and Dayang Enterprise Holdings Bhd managing director Tengku Yusof Tengku Ahmad Shahruddin looking at the company’s prospectus projected on a screen in Kuala Lumpur.

KUALA LUMPUR: The price of rice will not go up despite the seemingly tighter supply in the local market, Deputy Prime Minister Datuk Seri Najib Tun Razak said.

“At the moment, there are no plans to increase the price. There must be enough rice stockpile in the country.

“Obviously, we have to look in terms of supply to ensure enough stockpile,” he told reporters after the launch of Dayang Enterprise Holdings Bhd's prospectus for its upcoming listing on Bursa Malaysia here yesterday.

He said the Government was, however, monitoring the situation closely.

Asked whether it would mean that the Government would increase the rice subsidy, Najib replied: “I have not seen the figures yet but there are no plans to increase the price.”

On measures planned by the National Price Council on the matter, he said the council had just had one meeting before the general election and it would hold another meeting to discuss efforts to control the prices of goods so that the people would not feel the pressure from rising prices of essential items.

Asked whether Malaysia was facing difficulty in securing rice supply, Najib said: “We know the market is tighter now. We will step up efforts to increase the supply of rice as part of stockpiling.”

On whether the Government would source rice from outside, he said: “We have to source from around the region.”

Najib added that efforts to increase rice production in the country was also being intensified but that would take a longer time.

NST : From frying pan into the fire

1970-01-01T00:00:00+01:00

THE Consumers Association of Penang is concerned over the recent complaint about a trader at a pasar tani in Larkin, Johor Baru, using plastic in the oil used for preparing potato chips.

This was followed by an earlier report of a trader using plastic in oil when frying pisang goreng in order to keep them crispy.

These cases come hot on the heels of a report where a factory in Kepala Batas was closed down for violating various health regulations, including using recycled oil for cooking and storing cooking oil in unhygienic recycled plastic containers.

We believe these are not isolated cases and is the practice throughout the country.

A study on heated vegetable cooking oil was conducted by a research officer, Dr Tony Ng Kock Wai, of the Institute for Medical Research, and published in the Malaysian Journal of Medicine and Health Sciences in January 2006.

It is understood that deep-frying can give rise to the creation of by-products that are either volatile, such as peroxides and aldehydes, or non-volatile compounds. It is these non-volatile components, or polar compounds, which give rise to health concerns.

The results of this study strongly suggest a link between the long-term consumption of heated vegetable oils that contain 25 per cent of polar compounds with adverse effects on growth and body biochemistry, including raised levels of serum alkaline phosphatase (an indicator of liver function) and traces of albumin in the urine (an indicator for possible kidney damage).

The enlargement of the liver, heart and kidneys was observed.

Dr Ng's study revealed significant adverse effects on pregnancy, including a high number of stillborn births and poor growth prior to weaning. The survival of the maternal animal subjects was also affected significantly.

The symptoms preceding death included an apparent prolonged gestation period, lethargy and extensive uterine haemorrhage

Other researchers have also linked the consumption of heated oils to adverse effects in animals, including retardation in growth, liver damage, diarrhoea and even death.

While results from animal studies cannot always be extrapolated to humans, CAP believes that the findings should give rise to concern and urgent precautionary action.

Dr Ng has highlighted the necessity of using good quality oil, the lowest possible temperatures, frequent oil chan-ges and the removal of black particles from the oil.

We believe that food traders, including hawkers, are not following these practices at all, and, therefore, are putting the public's health at risk.

CAP calls on the Health Ministry to investigate and inform the public on the status of the use of cooking oils and fried food in the country.

As a precautionary measure, it may be necessary for the ministry to advise the public to refrain from eating commercially-prepared fried food until the situation is assessed.

S.M. MOHAMED IDRIS

for Consumers Association of Penang

March 27, 2008

Food shock: No action despite complaints

I READ with disgust the report on plastics in frying oil. Here, I wish to record what I saw at the pasar tani on Saturdays in Larkin, Johor Baru.

This has been happening since last year.

I was at a stall buying mushrooms when I saw this man at the next stall frying snacks at the back of his stall.

THE Consumers Association of Penang is concerned over the recent complaint about a trader at a pasar tani in Larkin, Johor Baru, using plastic in the oil used for preparing potato chips.

This was followed by an earlier report of a trader using plastic in oil when frying pisang goreng in order to keep them crispy.

He was scruffy looking, with a cigarette dangling from his mouth as he dipped a bag of fries in the hot oil.

What was left in his hand was only the top of the bag. The rest of the bag was in the oil.

His ladle for scooping out the fried items had pieces of plastic stuck to it and so did the frying pan.

I was shocked.

He saw me watching him and commenting to the mushroom seller, yet he nonchalantly went on with his work.

I warned friends who were at the stall not to buy from him and his assistants.

My husband and I lodged a complaint with the authorities.

When the Johor Baru City Council had its open day at the same venue last year, I again brought up this issue.

A few weeks later, I received two letters of acknowledgement thanking me for the information and concern.

Both letters assured me that it would take action.

I was impressed and hopeful, but that's as far as they got in taking any action.

To date, there has not been any change.

Every time I am at the pasar tani, this man, who is still selling there, gives me a good hard look, with a smirk on his face as he continues to do what he was doing eight months ago.

By : M.S.R., Johor Baru - 24 March 2008

Plastics shock: Punish them appropriately

I REFER to the letter "No action despite complaints" (NST, March 24) which described how some hawkers in Johor Baru, dip potato chips and plastic wrappers into oil.

The authorities need to take this issue seriously as it is a public health hazard.

It is common knowledge that plastics is a factor in cancer-related health risk, more so if absorbed into the body.

These unscrupulous traders should be punished appropriately for putting the public at risk.

We would be grateful if the Health Ministry, together with the Domestic Trade and Consumer Affairs Ministry, could take action to counter this public health menace.

By : TAM YONG YUEE, Muar - 25 March 2008