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Showing posts with label Thailand. Show all posts
Showing posts with label Thailand. Show all posts

Sunday 9 March 2014

Tracking the mysterious MH370: 2 impostors on board, plane missing 50 min not 2 hrs after take off...

  
Missing MAS flight: Two passengers using passports stolen in Thailand

PETALING JAYA: The mystery of the missing MH370 deepened when it was reported that there were two impostors on board, both with passports that were stolen in Thailand.

Italian Luigi Maraldi, whose name is on the manifest, was not on the missing MH370 flight. Someone else had used his passport to board the plane.

According to news reports from Italy which quoted its Foreign Ministry, Luigi Maraldi’s passport was stolen last August while he was in Thailand.

Maraldi, 37, is now in Thailand.

According to Italian newspaper La Repubblica, Maraldi returned home after his passport was stolen and had a new one issued.

When officials heard of the missing plane, they went to his parents’ home but they said their son was alive and well in Thailand, and had called to say he was fine.

“I am fine, I was not on the flight,” he told his parents.

Meanwhile, London’s Daily Mirror reported that a second passenger was also using a stolen passport.

Austrian Christan Kozel has been confirmed as safe and well by authorities.

He told Austrian newspaper De Standard that his passport was stolen when he visited Thailand two years ago.

It is still unclear as to who had travelled on MH370 under the two names. - The Star/Asia News Network

Tracking firm: Plane missing about 50min after departure

PETALING JAYA: Sweden-based flight tracking service FlightRadar24 was the first to report that Malaysia Airlines flight MH370 had disappeared from radar about 50 minutes of departure, and not two hours as initially stated.

"Flight #MH370 took off from Kuala Lumpur at 1641 UTC time (12.41am local time) and disappeared from www.flightradar24.com at 1720 UTC time (about 1.21am local time) between Malaysia and Vietnam," said the company’s chief executive officer Fredrik Lindahl in an e-mail response to The Star.

Flight MH370, on a B777-200 aircraft, departed Kuala Lumpur at 12.41am on March 8. It was expected to land in Beijing at 6.30am the same day.

"Also, based on our data, there is no doubt that the last reported position of MH370 is about 150km northeast of Kuala Terengganu.

"We have good radar coverage in the area the flight went missing and the last signal was received from an altitude of 35,000 feet," said Lindahl.

MAS group chief executive officer Ahmad Jauhari Yahya had initially said at a press conference at 11am yesterday that the Subang Air Traffic Control had lost contact with the plane around 2.40am.

However, Department of Civil Aviation (DCA) director-general Datuk Azharuddin Abdul Rahman clarified later in the evening that contact was lost at 1.30am.

Meanwhile, aviation website The Aviation Herald stated that the plane was last regularly seen at 1.22am about halfway between Kuala Lumpur and Vietnam’s Ho Chi Minh City.

"The aircraft was spotted over the Gulf of Thailand about 260 nautical miles north northeast of Kuala Lumpur and 120 nautical miles northeast of Kota Baru 50 minutes into the flight.

"This was followed by anomalies in the radar data of the aircraft over the next minute. Although these may be related to the aircraft, it could also be caused by the flight leaving the receiver range," it stated.

The website also reported aviation sources in China as saying that radar data suggested a steep and sudden descent of the flight, during which time the aircraft had changed track from 24 degrees to 333 degrees.

- The Star/Asia News Network

No sign of Malaysia Airline wreckage; questions over stolen passports

Watch this video

Traces of oil may be clue in plane search



STORY HIGHLIGHTS
  • NEW: "We have not been able to locate anything," an airline official says
  • U.S. law enforcement sources say both passports were stolen in Thailand
  • One of the two stolen passports is listed in Interpol's database, sources say
  • Vietnamese searchers spot oil slicks in the South China Sea

Kuala Lumpur, Malaysia (CNN) -- There were few answers Sunday about the fate of Malaysia Airlines Flight 370, a day after contact was lost with the commercial jetliner en route from Kuala Lumpur to Beijing.

An aerial search resumed at first light, with aircraft searching an area of the South China Sea for any sign of where the flight may have gone down, Azharuddin Abdul Rahman, the director general of civil aviation in Malaysia, told reporters

"We have not been able to locate anything, see anything," Rahman said. "There's nothing new to report."

The closest things to clues in the search for the missing jetliner are oil slicks in the Gulf of Thailand, about 90 miles south of Vietnam's Tho Chu Island -- the same area where the flight disappeared from radar early Saturday morning. A Vietnamese reconnaissance plane, part of a massive, multinational search effort, spotted the oil slicks that stretch between six and nine miles, the Vietnam government's official news agency reported.

Malaysian authorities have not yet confirmed the Vietnamese report, Rahman said.

The reported oil discovery has only added to a growing list of questions about the fate of the plane carrying 227 passengers and 12 crew members: What happened to the plane, why was no distress signal issued, and who exactly was aboard?

Passenger manifest questioned

Bits and pieces of information have begun to form, but it remains unclear how they fit into the bigger picture, if at all.


Photos: Malaysia airliner loses contact Photos: Malaysia airliner loses contact

Map: Malaysia airliner lost contactMap: Malaysia airliner lost contact

Traces of oil may be clue in search

Quest: I flew with missing first officer

Quest: Odd to lose contact while cruising
 
For instance, after the airline released a manifest, Austria denied that one of its citizens was aboard the flight. The Austrian citizen was safe and sound, and his passport had been stolen two years ago, Austrian Foreign Ministry spokesman Martin Weiss said.

Similarly, Italy's foreign ministry confirmed none of its citizens were on Flight 370, even though an Italian was listed on the manifest.

On Saturday, Italian police visited the home of the parents of Luigi Maraldi, the man whose name appeared on the manifest, to inform them about the missing flight, said a police official in Cesena, in northern Italy.

Maraldi's father, Walter, told police he had just spoken to his son, who was fine and not on the missing flight, said the official, who is not authorized to speak to the media. Maraldi was vacationing in Thailand, his father said.

The police official said Maraldi had reported his passport stolen in Malaysia last August and had obtained a new one. But U.S. law enforcement sources told CNN that both the Austrian and Italian passports were stolen in Thailand.

"No nexus to terrorism yet," a U.S. intelligence official said, "although that's by no means definitive. We're still tracking."

Rahman, Malaysia's top civil aviation official, declined to answer questions Sunday about the stolen passports, and how people using them managed to get past security and on to the plane.

"This is part of the investigation," Rahman said at a news conference.

The U.S. government has been briefed on the stolen passports and reviewed the names of the passengers in question but found nothing at this point to indicate foul play, said a U.S. law enforcement official, who spoke on condition of anonymity.

Of the two passports in question, the Italian one had been reported stolen and was in Interpol's database, CNN Law Enforcement Analyst Tom Fuentes said, citing sources at Interpol.

Additionally, no inquiry was made by Malaysia Airlines to determine if any passengers on the flight were traveling on stolen passports, he said. Many airlines do not check the database, he said.

During the news conference in Kuala Lumpur, Rahman declined to say whether the airline or Malaysian authorities had checked the database.

Not ruling anything out

Malaysian authorities reiterated during a news conference that they are not ruling anything out regarding the missing aircraft.

The Boeing 777-200ER departed Kuala Lumpur International Airport at 12:41 a.m. Saturday in good weather, and it was expected to land in Beijing at 6:30 a.m., a 2,300-mile (3,700-kilometer) trip.

Air traffic controllers in Subang, outside Kuala Lumpur, lost contact with the plane about 1:30 a.m., Rahman said. Earlier, the airline said the jetliner lost contact at 2:40 a.m.

The pilots did not indicate to the tower there may be a problem, and no distress signal was issued, the airline said.

It may be days, possibly weeks or months, before authorities can offer any firm answers.

It took five days for authorities to locate the wreckage of Air France Flight 447 when it crashed June 1, 2009, in the Atlantic Ocean, killing all 228 on board.

It took four searches over the course of nearly two years to locate the bulk of Flight 447's wreckage and the majority of the bodies in a mountain range deep under the ocean.

If Malaysia Airlines Flight 370 went down in the Gulf of Thailand, the recovery may be a bit easier because it is a relatively shallow area of the South China Sea, according to marine officials.

China, Vietnam, Singapore and Malaysia were conducting search and rescue operations south of Tho Chu island in the South China Sea, according to the airline and reports from Xinhua, China's official news agency. Ships, helicopters and airplanes are being utilized.

The USS Pinckney, a destroyer conducting training in the South China Sea, is being routed to the southern Vietnamese coast to aid in the search, the U.S. Navy said. The United States is also sending a P-3C Orion surveillance plane from Japan to provide long-range search, radar and communications capabilities, the Navy said.

Meanwhile, the Chinese Coast Guard has ordered on-duty vessels to aid in the search, Xinhua reported, citing government officials. China also sent a diving and salvage team to the area where the airplane is suspected to have gone down, the news agency reported.

Because of the Americans aboard the flight, the FBI has offered to send a team of agents to Malaysia to support the investigation into the disappearance if asked, a U.S. official familiar with the issue told CNN on condition of anonymity. Earlier, an official had said FBI agents were heading to the area.

The FBI is not ruling out terrorism or any other issue as a possible cause in the jetliner's disappearance, the official said.

Officials appeared resigned to accepting the worst outcome.

"I'd just like to say our thoughts and prayers are with the bereaved families," Malaysian Prime Minister Najib Razak said during a news conference.

Grief, especially in China

The plane carried 227 passengers, including five children under 5 years old, and 12 crew members, the airline said. At the time of its disappearance, the Malaysia Airlines plane was carrying about 7.5 hours of fuel, an airline official said.

Among the passengers there were 154 people from China or Taiwan; 38 Malaysians, and three U.S. citizens.

Relatives of the Chinese citizens on board gathered Saturday at a hotel complex in the Lido district of Beijing as a large crowd of reporters gathered outside.

"My son was only 40 years old," one woman wailed as she was led inside. "My son, my son. What am I going to do?"

Family members were kept in a hotel conference room, where media outlets had no access. Most of the family members have so far refused to talk to reporters. The airline said the public can call 603 7884 1234 for further information.

In Malaysia, the families and loved ones of those aboard the flight were gathered at the Everly Hotel in Putrajaya, south of Kuala Lumpur, according to Bernama, the Malaysian national news agency.

Twenty of the passengers aboard the flight work with Freescale Semiconductor, a company based in Austin, Texas. The company said that 12 of the employees are from Malaysia and eight are from China.

The airline's website said the flight was piloted by a veteran.

Capt. Zaharie Ahmad Shah, a 53-year-old Malaysian, has 18,365 total flying hours and joined Malaysia Airlines in 1981, the website said. The first officer is Fariq Ab Hamid, 27, a Malaysian with a total of 2,763 flying hours. He joined Malaysia Airlines in 2007.

Still an 'urgent need' to find plane

"The lack of communications suggests to me that something most unfortunate has happened," said Mary Schiavo, former inspector general of the U.S. Department of Transportation, in an interview with CNN International.

"But that, of course, does not mean that there are not many persons that need to be rescued and secured. There's still a very urgent need to find that plane and to render aid," she said.

Malaysia Airlines operates in Southeast Asia, East Asia, South Asia, the Middle East and on the route between Europe and Australasia.

It has 15 Boeing 777-200ER planes in its fleet, CNN's Richard Quest reported. The missing airplane was delivered to Malaysia Airlines in 2002.

Part of the company is in the private sector, but the government owns most of it.

Malayan Airways Limited began flying in 1937 as an air service between Penang and Singapore. A decade later, it began flying commercially as the national airline.

In 1963, when Malaysia was formed, the airline was renamed Malaysian Airlines Limited.

Within 20 years, it had grown from a single aircraft operator into a company with 2,400 employees and a fleet operator.

If this aircraft has crashed with a total loss, it would the deadliest aviation incident since November 2001, when an American Airlines Airbus A300 crashed in Belle Harbor, Queens, shortly after takeoff from JFK Airport. Killed were 265 people, including five people on the ground.

- Contributed by Chelsea J. Carter and Jim Clancy, CNN

Related post:

Sunday 14 October 2012

Cost of vehicle ownership in Malaysia


MALAYSIA is perceived to be one of the costlier countries in the region when it comes to vehicle prices. But industry observers believe that this is compensated by the fact that the country’s fuel prices are heavily subsidised, and that it also enjoys the lowest interest rates in South-East Asia.

“One should not compare vehicle cost of ownership in the region purely based on the price of the car alone,” says Malaysian Automotive Association president Datuk Aishah Ahmad.

According to data by the Malaysia Automotive Institute (MAI), the average interest rate in Malaysia for a loan tenure of between 60 months and 108 months is between 2.5% and 3.6% - which is the lowest in Asean.

Interest rates in Vietnam is the highest, which has a flat rate of 16% per annum for loans that range between 12 months and 60 months.

“Given the fact that Malaysia’s interest rates are the lowest in the region, as well as the fact that fuel prices are subsidised, the total cost of vehicle ownership is one of the lowest in Asean,” says MAI chief executive officer Madani Sahari. The cost of interest rates used in MAI’s calculations is over 5 years.

The MAI is the think-tank for the Malaysian automotive industry.

Madani notes also that the price of subsidised RON 95 in Malaysia was one of the lowest in the region at RM1.90 per litre. Comparatively, the cost for the fuel in Thailand is RM3.80 per litre, Indonesia (RM3.35 per litre), Singapore (RM5.10 per litre), Vietnam (RM3.60 per litre) and the Philippines (RM3.20 per litre).

“In terms of road tax, we are also quite competitive in Asean. Malaysia is still cheaper compared with countries such as Thailand and Indonesia and comparative to Vietnam and the Philippines,” he says.

Perusahaan Otomobil Kedua Sdn Bhd managing director Datuk Aminar Rashid Salleh says Malaysians are blessed to have their fuel subsidised.


“We have low fuel prices and interest rates. All of these factors have contributed to Malaysia’s low cost of vehicle ownership.”

Madani points out that over a five-year period, the average road tax and insurance in Malaysia was among the lowest in the region, costing RM1,990 and RM15,310 respectively.

The five-year cost of road tax and insurance in Singapore was the highest at RM13,779 and RM39,806 respectively, compared with Indonesia (RM9,186 and RM22,965), Thailand (RM2,297 and RM33,682) and the Philippines (RM1,531 and RM14,238).

When comparing vehicle prices, especially those of popular international marques such as Toyota, Honda and BMW, Madani points out that prices in Malaysia were still lower compared with countries such as Singapore and Vietnam.

According to data from the MAI, a 1.5-litre Toyota Vios (as at September 2012) costs RM87,313 in Malaysia but costs RM88,456 and RM303,136 in Vietnam and Singapore respectively. The Vios is cheapest in the Philippines at RM60,271.

A brand new 1.5-litre Honda City meanwhile retails for RM88,443 locally and costs RM106,090 and RM295,800 in Vietnam and Singapore respectively and lowest in the Philippines at RM61,472.

The BMW 3 series, a popular premium model that is represented in most Asean countries, costs RM238,800 in Malaysia. It costs RM248,200 and RM541,200 respectively in Vietnam and Singapore. It costs the least in Indonesia, retailing at RM191,900.

However, when taking into account the vehicles’ selling price, down payment and loan repayment (including interest rates), road tax and insurance, as well as the fuel prices of the different countries, the total vehicle cost of ownership for a 1.5-litre Toyota Vios is RM130,382, which is the second lowest in the region after Philippines, where the total vehicle cost of ownership is RM128,933.

Total vehicle cost of ownership for the Toyota Camry (2.5-litre) in Malaysia is also second lowest in the region at RM243,182. The total vehicle cost of ownership for the Toyota Altis (1.8-litre) in Malaysia is however the cheapest in the region at RM163,973.

After the Philippines, Malaysia also boasts the second lowest total vehicle cost of ownership for the Honda City (1.5-litre), Civic (1.8-litre) and Accord (2.4-litre) models in the region. Malaysia also has the lowest total vehicle cost of ownership for the BMW 3 series.

By EUGENE MAHALINGAM eugenicz@thestar.com.my

Sunday 9 September 2012

World Competitive Rankings defy logic

The WEF may have its own method of measuring the competitiveness of each country but its rankings defy the stark reality of what is going on in the world.

BANGKOK: The World Economic Forum (WEF) has just issued its Global Competitiveness Index 2012-2013 rankings.

Thailand’s competitiveness ranking has improved slightly to 38th spot this year, while Switzerland has edged out Singapore to become the most competitive nation on earth.

The WEF has its own formula in ranking the competitiveness of each country. However, the WEF’s ranking does raise some eyebrows.

According to the WEF, Spain is more competitive than Thailand because its overall ranking is 36th. This ranking is questionable.

Spain is planning to seek a full bailout from the European Union. The European Central Bank is about to monetise its debt. It has received €100bil (RM393.7bil) in bailout funds already. Some €75bil (RM295.3bil) in deposits have fled the Spanish banking system.

Spain is in a similar situation to Thailand in the first part of 1997 before Thailand sought a bailout from the International Monetary Fund. By this measure, Spain should not get a ranking higher than Thailand.

Switzerland, ranked No.1, will not enjoy its position as an oasis of peace and prosperity in Europe for too long in the event of a euro implosion. Swiss banks’ assets, which are tied to the European banking crisis, are more than 300% of the country’s GDP.

The United States has slipped to 7th in the rankings. The US economy is in big trouble. Some 46 million Americans are on food stamps. There are 10 million Americans unemployed, including another 12 million who are doing odd jobs.

Some 18 million American households are having a tough time making ends meet. The banking system is in shambles. The US national debt has hit US$16tril (RM49.7tril), or about 100% of the GDP. The budget deficit is chronic. The country is years away, if ever, from being able to balance its budget.

Most important, the Federal Open Market Committee will meet on Sept 12 to determine whether it will go ahead with a bond-buying programme, or QE3, to further prop up the financial system. US finances are in very bad shape indeed.

Japan is ranked in 10th spot. Does it deserve this position? The whole world knows that Japan has the world’s largest public debt at more than US$12tril (RM37.3tril), or 230% of its GDP. Japan’s debt is largely financed by domestic bonds. But with an ageing society, Japan will face higher interest costs from its borrowing, which will put the health of its finances into further question.

The Japanese economy is far from recovering from its crisis of the 1990s. Japan is facing sluggish growth and also high energy costs in the aftermath of the Fukushima nuclear plant disaster.

Its export sector is feeling the pinch from the strong yen. If the consumer markets in Europe or US were to slacken even more, Japan’s export machines will wobble. Foreign exchange earnings will plunge, while domestic demand has been in a weak state all along.

Saudi Arabia, ranked at 18th, is the world’s largest oil exporter. But a Citibank report issued last week said Saudi Arabia might have to import energy by 2030 if the current pace of domestic consumption and exports continues.

Israel is ranked 26th, though it is facing off against Iran in the Middle East. A war could break out between the two countries at any time, given the tensions between their leaders.

China is ranked 29th, although it is the richest country in terms of foreign exchange reserves. Its reserves stand at US$3tril (RM9.3tril). China is the world’s production factory. Its economy is the world’s second largest after the United States. It is improving fast in technology and innovations.

Moreover, China is also building up its military and has nuclear weapons in store. Apparently, China does not deserve this relatively low ranking.

This also applies to other Brics countries such as Russia (67th), Brazil (48th) and India (59th). How is it possible that the Philippines musters at 65th, two notches higher than Russia, which is still a superpower, rich with resources? The Philippines is vulnerable to food price increases and also to natural disasters.

The WEF may have its own method of measuring the competitiveness of each country. But its rankings defy common sense and the stark reality of what is going on in the world.

From a group of leading Asian newspapers working towards improving coverage of Asian affairs
http://www.asianewsnet.net/

World Competitive Rankings defy logic

The WEF may have its own method of measuring the competitiveness of each country but its rankings defy the stark reality of what is going on in the world.

BANGKOK: The World Economic Forum (WEF) has just issued its Global Competitiveness Index 2012-2013 rankings.

Thailand’s competitiveness ranking has improved slightly to 38th spot this year, while Switzerland has edged out Singapore to become the most competitive nation on earth.

The WEF has its own formula in ranking the competitiveness of each country. However, the WEF’s ranking does raise some eyebrows.

According to the WEF, Spain is more competitive than Thailand because its overall ranking is 36th. This ranking is questionable.

Spain is planning to seek a full bailout from the European Union. The European Central Bank is about to monetise its debt. It has received €100bil (RM393.7bil) in bailout funds already. Some €75bil (RM295.3bil) in deposits have fled the Spanish banking system.

Spain is in a similar situation to Thailand in the first part of 1997 before Thailand sought a bailout from the International Monetary Fund. By this measure, Spain should not get a ranking higher than Thailand.

Switzerland, ranked No.1, will not enjoy its position as an oasis of peace and prosperity in Europe for too long in the event of a euro implosion. Swiss banks’ assets, which are tied to the European banking crisis, are more than 300% of the country’s GDP.

The United States has slipped to 7th in the rankings. The US economy is in big trouble. Some 46 million Americans are on food stamps. There are 10 million Americans unemployed, including another 12 million who are doing odd jobs.

Some 18 million American households are having a tough time making ends meet. The banking system is in shambles. The US national debt has hit US$16tril (RM49.7tril), or about 100% of the GDP. The budget deficit is chronic. The country is years away, if ever, from being able to balance its budget.

Most important, the Federal Open Market Committee will meet on Sept 12 to determine whether it will go ahead with a bond-buying programme, or QE3, to further prop up the financial system. US finances are in very bad shape indeed.

Japan is ranked in 10th spot. Does it deserve this position? The whole world knows that Japan has the world’s largest public debt at more than US$12tril (RM37.3tril), or 230% of its GDP. Japan’s debt is largely financed by domestic bonds. But with an ageing society, Japan will face higher interest costs from its borrowing, which will put the health of its finances into further question.

The Japanese economy is far from recovering from its crisis of the 1990s. Japan is facing sluggish growth and also high energy costs in the aftermath of the Fukushima nuclear plant disaster.

Its export sector is feeling the pinch from the strong yen. If the consumer markets in Europe or US were to slacken even more, Japan’s export machines will wobble. Foreign exchange earnings will plunge, while domestic demand has been in a weak state all along.

Saudi Arabia, ranked at 18th, is the world’s largest oil exporter. But a Citibank report issued last week said Saudi Arabia might have to import energy by 2030 if the current pace of domestic consumption and exports continues.

Israel is ranked 26th, though it is facing off against Iran in the Middle East. A war could break out between the two countries at any time, given the tensions between their leaders.

China is ranked 29th, although it is the richest country in terms of foreign exchange reserves. Its reserves stand at US$3tril (RM9.3tril). China is the world’s production factory. Its economy is the world’s second largest after the United States. It is improving fast in technology and innovations.

Moreover, China is also building up its military and has nuclear weapons in store. Apparently, China does not deserve this relatively low ranking.

This also applies to other Brics countries such as Russia (67th), Brazil (48th) and India (59th). How is it possible that the Philippines musters at 65th, two notches higher than Russia, which is still a superpower, rich with resources? The Philippines is vulnerable to food price increases and also to natural disasters.

The WEF may have its own method of measuring the competitiveness of each country. But its rankings defy common sense and the stark reality of what is going on in the world.

From a group of leading Asian newspapers working towards improving coverage of Asian affairs
http://www.asianewsnet.net/

World Competitive Rankings defy logic

The WEF may have its own method of measuring the competitiveness of each country but its rankings defy the stark reality of what is going on in the world.

BANGKOK: The World Economic Forum (WEF) has just issued its Global Competitiveness Index 2012-2013 rankings.

Thailand’s competitiveness ranking has improved slightly to 38th spot this year, while Switzerland has edged out Singapore to become the most competitive nation on earth.

The WEF has its own formula in ranking the competitiveness of each country. However, the WEF’s ranking does raise some eyebrows.

According to the WEF, Spain is more competitive than Thailand because its overall ranking is 36th. This ranking is questionable.

Spain is planning to seek a full bailout from the European Union. The European Central Bank is about to monetise its debt. It has received €100bil (RM393.7bil) in bailout funds already. Some €75bil (RM295.3bil) in deposits have fled the Spanish banking system.

Spain is in a similar situation to Thailand in the first part of 1997 before Thailand sought a bailout from the International Monetary Fund. By this measure, Spain should not get a ranking higher than Thailand.

Switzerland, ranked No.1, will not enjoy its position as an oasis of peace and prosperity in Europe for too long in the event of a euro implosion. Swiss banks’ assets, which are tied to the European banking crisis, are more than 300% of the country’s GDP.

The United States has slipped to 7th in the rankings. The US economy is in big trouble. Some 46 million Americans are on food stamps. There are 10 million Americans unemployed, including another 12 million who are doing odd jobs.

Some 18 million American households are having a tough time making ends meet. The banking system is in shambles. The US national debt has hit US$16tril (RM49.7tril), or about 100% of the GDP. The budget deficit is chronic. The country is years away, if ever, from being able to balance its budget.

Most important, the Federal Open Market Committee will meet on Sept 12 to determine whether it will go ahead with a bond-buying programme, or QE3, to further prop up the financial system. US finances are in very bad shape indeed.

Japan is ranked in 10th spot. Does it deserve this position? The whole world knows that Japan has the world’s largest public debt at more than US$12tril (RM37.3tril), or 230% of its GDP. Japan’s debt is largely financed by domestic bonds. But with an ageing society, Japan will face higher interest costs from its borrowing, which will put the health of its finances into further question.

The Japanese economy is far from recovering from its crisis of the 1990s. Japan is facing sluggish growth and also high energy costs in the aftermath of the Fukushima nuclear plant disaster.

Its export sector is feeling the pinch from the strong yen. If the consumer markets in Europe or US were to slacken even more, Japan’s export machines will wobble. Foreign exchange earnings will plunge, while domestic demand has been in a weak state all along.

Saudi Arabia, ranked at 18th, is the world’s largest oil exporter. But a Citibank report issued last week said Saudi Arabia might have to import energy by 2030 if the current pace of domestic consumption and exports continues.

Israel is ranked 26th, though it is facing off against Iran in the Middle East. A war could break out between the two countries at any time, given the tensions between their leaders.

China is ranked 29th, although it is the richest country in terms of foreign exchange reserves. Its reserves stand at US$3tril (RM9.3tril). China is the world’s production factory. Its economy is the world’s second largest after the United States. It is improving fast in technology and innovations.

Moreover, China is also building up its military and has nuclear weapons in store. Apparently, China does not deserve this relatively low ranking.

This also applies to other Brics countries such as Russia (67th), Brazil (48th) and India (59th). How is it possible that the Philippines musters at 65th, two notches higher than Russia, which is still a superpower, rich with resources? The Philippines is vulnerable to food price increases and also to natural disasters.

The WEF may have its own method of measuring the competitiveness of each country. But its rankings defy common sense and the stark reality of what is going on in the world.

From a group of leading Asian newspapers working towards improving coverage of Asian affairs
http://www.asianewsnet.net/

Tuesday 21 August 2012

Malaysian car prices to drop gradually?

Revised NAP likely to include policy to reduce car prices over next 3-4 years

PETALING JAYA: The revised National Automotive Policy (NAP) will include a policy that will address the gradual reduction of car prices in the country, said an industry source.

What happens to second-hand cars? Naza Group of Companies joint executive chairman SM Nasarudin SM Nasimuddin was quoted in a recent report as saying: if prices dropped, the resale value of a car would then plummet but the loan amount owed to banks (on cars already bought) would be unchanged.

The Government, through the Malaysia Automotive Institute (MAI), had engaged us in the past few months to discuss on the matter,” he told StarBiz.

“There will be a policy that will tackle the gradual reduction of car prices in Malaysia. Details of this policy are expected to be made public in the near future,” he added.

The source said the policy would outline a structure to gradually reduce car prices over the next three to four years.

The Government has been considering it (the reduction of car prices) in the revised NAP and it was only a matter of time for this issue to be addressed,” said the industry source.

It is a known fact that the prices of cars are high in Malaysia compared with Thailand.

However, it has been argued that the cost of vehicle ownership in Malaysia is still among the most competitive in the Asean region, primarily due to the subsidised fuel prices, cheaper road tax and insurance premiums.

In a recent news report, MAI chief executive officer Madani Sahari was quoted as saying that Malaysia had the second lowest cost of vehicle ownership in the region after the Philippines.

According to him, the cost of vehicle ownership in Malaysia, compared to Thailand and Indonesia, was lower by 39% and 12% respectively.

In terms of petrol prices, Thailand was the highest, followed by Singapore, Indonesia, Vietnam and the Philippines, Madani said in the news report.

Meanwhile, on the point of car prices being slashed overnight via the reduction of vehicle excise duties, industry observers argue that the impact would be negative for existing buyers rather than first-time ones.

“If you're a first-time buyer, it would be like a dream come true as it means you can now afford to buy a car that was too expensive previously,” said one industry observer who requested anonymity.

“For the existing buyer, it would mean that the resale value of the car would have diminished overnight,” he added.

It is also argued that the sudden drop in vehicle prices would have a severe impact on second-hand car dealers.

Those servicing existing car loans will also be severely affected.

In a local news report recently, Naza Group of Companies joint executive chairman SM Nasarudin SM Nasimuddin was quoted as saying that if taxes were scrapped, consumers would have to overpay bank loans taken for their vehicles.

In the report, Nasarudin claimed that if prices dropped, the resale value of a car would then plummet but the loan amount owed to banks would be unchanged.

By EUGENE MAHALINGAM  eugenicz@thestar.com.my/Asia News Network 

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