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25 stolen cars recovered
11 July 2011, By The Star
PORT KLANG: Twenty-five stolen cars worth about RM2mil have been recovered after being shipped off to Europe as furniture parts.
Selangor Customs director Datuk Azis Yacub said the cars, all of a particular Japanese make, were smuggled out in five containers marked as “wooden furniture parts” and left for Cyprus on June 25.
“The Customs Department, with the cooperation of the shipping company, managed to track the ship transporting the containers.
“At that time, the ship was berthed in Haifa Port, Israel, and we instructed all the containers to be brought back to Malaysia,” he told reporters yesterday.
He said the containers arrived at Westport on July 27 and a scan revealed images of cars.
A physical check was conducted last Thursday and each container was found to contain five cars.
“Three cars were parked on the base of the container, while two were suspended with ropes,” said Azis.
A 35-year-old man has been detained in connection with the case, while two more suspects are being sought.
Under the Customs Act, the maximum penalty for making a false declaration is a RM500,000 fine or five years’ jail or both.
State CID chief Senior Asst Comm Mohd Adnan Abdullah said the 25 cars were reported missing in June, with 20 reports lodged in Selangor, three in Kuala Lumpur, and one each in Malacca and Negri Sembilan.
“The syndicate sends the stolen cars to Hong Kong, Thailand, Dubai and Cyprus,” he revealed.
The syndicate is the same one from which police recovered 98 stolen cars at a warehouse in Kampung Black Water near Banting on June 29.
Four men were arrested during the raid three months ago, said SAC Mohd Adnan.
Public can lodge traffic-related reports at any police station soon
29 July 2010, By The Star
GENTING HIGHLANDS: Come November, motorists lodging traffic-related reports at police stations can save time as they no longer have to wait for the traffic investigating officers to take down their complaints.
“By that time, all police stations will be linked to the online Police Reporting System (PRS).
“Under the new system, a person doesn't have to go to a traffic police centre to lodge a report.
“They can go to any police station,” said Deputy Inspector-General of Police Datuk Seri Khalid Abu Bakar.
He added that the general policemen could conduct the initial investigation by taking down the accident particulars and snapping photographs of the damaged vehicle before submitting it online.
The report would then be sent to a traffic investigating officer in the area or location of the accident for a detailed case follow-up.
Khalid said motorists would even be able to apply for photographs and sketches of the accident site online and choose the police station from which they wished to collect the documents.
He explained that currently all police stations could accept police reports on traffic matters and accidents, however this was done manually and the reports were then sent to the respective traffic police centres before investigations could start.
Khalid said this after witnessing the closing ceremony of the three-day Traffic Police Investigation Application Workshop here yesterday.
Thirty-two state and senior traffic police chiefs attended the brainstorming event to improve the traffic police investigation and delivery system.
On a separate matter, Khalid said the army would assist the police in conducting patrols and security checks at the KL International Airport from next month.
It was part of an ongoing army-police collaboration programme which began last year.
“The army personnel stationed at KLIA would be issued with standard police weapons because the airport is a sensitive area,” he said.
Idris Jala: No hasty introduction of GST
5 July 2011, By The Star
KUALA LUMPUR: Fears that there will be a hasty introduction of the goods and services tax (GST) have beem allayed by the Government, which said it would not be implemented in the near future without public support.
"There should not be cause for alarm even if there is a decision to introduce the GST tomorrow.
"It will take at least 18 months for it to be fully in place," Minister in the Prime Minister's Department Datuk Seri Idris Jala said Tuesday.
Speaking to reporters following the announcement of the Government's six Strategic Reform Initiatives (SRI) to boost the nation's global competitiveness, he said that the GST would not be introduced any time soon.
He said public engagement and education were necessary before any decision was made.
"We want to make sure the public fully understands and is supportive of the GST before it is done," he said, adding that no deadline has been fixed for its introduction.
Idris, who is Pemandu CEO, chided certain quarters from portraying the GST as being a burden for the lower income group and poor.
"This is absolutely not true as all staple food such as sugar, rice and flour would be exempted from GST," he said.
He said the exemption was not exclusive to food items but could also be expanded to cover public transportation if needed.
Lawyer charged with CBT
27 October 2010, By The Star
SEREMBAN: A 54-year-old mother who lost two sons in a road accident three years ago suffered another blow when the lawyer representing her in a civil suit allegedly failed to give her the compensation paid out by the insurance company.
Jumlahtiah Enting @ Sting had appointed Sasi Kumar Kandasamy, 38, to act for her.
Yesterday, Sasi Kumar pleaded not guilty at a Sessions Court here of committing criminal breach of trust involving RM17,469.
He was accused of failing to pay Jumlahtiah the money, although Kurnia Insurance had released the money to his legal firm.
Sasi Kumar allegedly committed the offence between April 10 and May 15, 2007.
He was charged under Section 409 of the Penal Code. If found guilty, he can be jailed between two and 20 years and caned.
Judge Amran Jantan set Nov 29 for trial.
Girl paralysed by go-kart mishap awarded RM1mil in damages
13 September 2009, By The Star
SEREMBAN: “We have waited for this for more than 10 years.
“I hope my little girl will be able to lead a better life from now on and can fend for herself when we are gone.”
These were the first words of retired air force personnel Prem Singh, 56, after the High Court here upheld a lower court’s decision to award his paraplegic 23-year-old daughter Amrita Kaur almost RM1mil in damages for injuries suffered while driving a go-kart at a resort in Port Dickson in December 1999.
Prem, who now works as a driver, said the award would help alleviate his burden.
“We have gone through a lot to make ends meet.
“Justice has finally been served,” he said.
Earlier, judicial commissioner Ahmad Nasfy Yasin upheld a lower court’s decision to award Amrita almost RM1mil in damages in his judgment, delivered in chambers before Amrita’s counsel Haresh Mahadevan and Ramzani Idris, and representatives for the defendants, T. Jayadeva and C.L. Chin.
Amrita was only 12 when her long hair got caught in the go-kart’s rear engine while driving at a centre operated by Vitaton Holding Sdn Bhd at KM22 Pasir Panjang in Port Dickson.
She has been confined to a wheelchair since the incident paralysed her from the chest down and is dependent on her parents for all her needs.
In the suit, both Amrita and Prem had claimed that the personnel on duty that day had failed to stop the machine and this had aggravated her injury.
In May, the Sessions Court found that Vitaton (M) Sdn Bhd, Paul Sia and directors The Gi Ya and The Kai Sing were liable for Amrita’s injuries.
It had ordered the second and third defendants to pay 30% each of the damages while Gi Ya and Kai Sing would pay 20% each.
The defendants were also ordered to pay Amrita RM200,000 for the complete paralysis she suffered with an additional 8% interest, RM336,000 for 60 years of nursing care and RM144,000 for diapers, disposal gloves, moisturising cream, olive oil and cotton wool.
The court also directed the defendants to pay the RM43,956.84 surgery cost incurred at Gleneagles Intan Hospital in Kuala Lumpur where Amrita was referred to after the incident.
Haresh said the JC also found that the personnel on duty had not given Amrita a helmet for her size, which contributed to the mishap.
Amrita said she planned to pursue a diploma in business management in Kuala Lumpur as the colleges in Seremban had no disabled-friendly facilities.
“I had waited for a long time to do this,” she said.
Amrita said she was happy as she would no longer be a burden to her parents and hoped they could focus on her siblings.
Move for protection against cartels
13 October 2010, By New Straits Times
GEORGE TOWN: An independent commission to implement the newly minted Competition Act 2010 is to be set up by Jan 1 next year.
Known as The Competition Commission, it will have powers to prevent large companies in Malaysia from engaging in monopolistic and cartel activities.
The act, which was passed by Parliament in June, would be enforced from Jan 1, 2012.
A member of the interim competition unit, R. Shagivarnam, said the act was aimed at promoting a level-playing field among businesses to protect consumer interests.
The act empowers the commission to conduct investigations into any enterprise suspected of infringment.
A corporate body may be fined up to RM5 million for a first offence and up to RM10 million for a subsequent offence. Individuals may be fined up to RM1 million for a first offence and RM2 million for a subsequent offence or up to five years jail.
He said that in general, the law did not apply to sectors regulated by the telecommunications and multimedia as well as energy industries.
He said the unit was entrusted to channel public feedback on the act to the commission before the legislation comes into effect.
Grading system for car workshops
9 October 2010, By New Straits Times
THE Federation of Automobile Workshop Owners Association Malaysia (FAWOAM) will introduce a grading system for customers to make price comparisons and find out details of a workshop online by January next year.
The system will allow for greater transparency and uniform practices to protect consumers from being overcharged by workshop operators, FAWOAM president Kong Wai Kwong said.
"FAWOAM will implement a grading system for all workshops which will kick off with the 500 PARS (Piam Authorised Repairers Scheme) approved workshops in the country," he told reporters in Kuala Lumpur yesterday.
Eventually, it will cover all FAWOAM's 2,700 members nationwide.
FAWOAM plans to make the new system accessible not only to workshop owners and insurers but also consumers and related government agencies.
"Consumers will now have all the information necessary to help make an informed choice when deciding on a workshop," Kong added.
According to Kong, consumers will be able to log onto the system; check on the equipment and skills available in a workshop; make price comparisons between workshops; and even find the location of the closest workshop.
The database will start by providing information on six high-selling brands in the country - Proton, Perodua, Honda, Nissan, Kia and Toyota - which make up about 85 per cent of the cars sold.
During the briefing with FAWOAM members, Kong said the new system will see workshops classified under three tiers: silver, gold and platinum.
The workshops will be graded according to their manpower, repair work, machinery and materials available.
"The workshops have to achieve the minimum requirement of the silver level. As they attain higher standards, they will be promoted to gold and, eventually, platinum.
"The main objective of introducing this scheme is to develop the industry further. FAWOAM believes that this form of self-evaluation and governance will develop workshops, industry players and the industry as a whole," Kong said.
Each tier will have specific requirements and price structures, and make it easier for insurers, loss adjusters and claim managers to come up with the estimates for collision repair costs.
Travel insurance saved my mum
29 September 2010, By The Star
RECENTLY, on a trip to China with my 81 year-old mother and some friends, we met with an accident.
My mom and I were knocked down by a car. My mom suffered head injuries when she fell and hit her head on the pavement. We took her to the hospital where it was determined that she was bleeding in her brain and would be in no condition to travel.
Beside difficulties in communicating with the locals as their dialect was different from the Mandarin that we used in Malaysia, I also found out that it was going to cost a lot of money to treat my mother.
Furthermore, the Chinese hospital would only accept yuan. Since I did not have much yuan with me, I was quite desperate.
Then I remembered the travel insurance I bought for the trip and called the emergency number given.
After confirming everything was in order, the customer service staff arranged for doctors from Malaysia and Beijing to liaise with the attending doctors at the hospital and to advise and keep me informed.
I was asked by the company’s doctors whether I wanted to bring my mother home to Malaysia. I told them that I did not see how it was possible due to my mother’s condition.
They assured me that they would make the arrangement and a plane would be sent over to pick us up.
The plane duly arrived as promised. I was surprised that the plane had ICU facilities with a doctor and nurse on board.
On arrival in Kuala Lumpur, there was an ambulance waiting to take us to the hospital requested by me earlier.
I was really amazed that for the small premium that I paid, we were given such VVIP treatment.
As a businesswoman, I was impressed by the professional manner of their staff in looking after us. With more Malaysians now travelling, they should not neglect buying travel insurance from the right company, especially when traveling overseas.
They should also know what insurance coverage they are getting.
I would like to thank all the staff who looked after us in China and Malaysia, especially Dr Alan, Dr Teoh, Dr Grey, Ms Sharmini and Ms Lisa.
YVONNE YUE,
Kuala Lumpur.
WHO Chief Says H1N1 Flu Pandemic Is Over
11 August 2010, By BERNAMA
GENEVA - The H1N1 pandemic is over and the global outbreak turned out to be much less severe than was feared just over a year ago, the head of the World Health Organization (WHO) said on Tuesday.
WHO director-general Margaret Chan once again rebutted criticism that the United Nations agency had hyped the first pandemic in more than 40 years, whose mildness left some Western governments holding huge stockpiles of unused vaccines.
The Hong Kong public health expert said the world had been lucky the H1N1 virus had not mutated into a more deadly form and that a safe vaccine developed in record time remained effective against it.
"We are now moving into the post-pandemic period. The new H1N1 virus has largely run its course," Chan said.
"That was the right call," she said, defending the decision taken in June last year to declare a pandemic.
The swine flu virus will continue to circulate as part of seasonal influenza for years to come, requiring health authorities to remain vigilant, she told a news conference.
It still threatens high-risk groups including pregnant women who would benefit from vaccination, she said.
Stockpiled H1N1 vaccines remain effective against the strain and so far the virus has not developed widespread resistance to the antiviral oseltamivir, the best treatment, she said.
The WHO's downgrading of the H1N1 outbreak to "post-pandemic" was based on recommendations by external influenza experts who conducted a review earlier in the day.
"I think even if we see severe outbreaks occurring in some countries -- which is still definitely possible -- that the global threat is really much lower and much different than a year ago," Keiji Fukuda, WHO's top flu expert, told reporters.
CONTINUED VIGILANCE
In June 2009, the WHO said a new swine flu virus, H1N1, that emerged in the United States and Mexico and spread around the world in six weeks, was the first pandemic since 1968. A full pandemic corresponds to phase 6 on the WHO's six-point scale.
"We need to continue to maintain our vigilance and not be complacent," Chan said, noting that outbreaks continued in countries including India and New Zealand.
The behavior of influenza viruses is notoriously difficult to predict and no two pandemics are alike, flu experts say.
"I am very pleased that European member states prepared for something worse. I'd rather have it go that way than their planning for less or not being prepared at all," Angus Nicoll, influenza program coordinator at the European Center for Disease Prevention and Control, told Reuters Tuesday.
The WHO has also rejected allegations that it acted under the influence of drug companies in declaring a pandemic.
Chan said that three viruses were now circulating as part of a "mixed virus pattern" in many countries, typically seen during seasonal epidemics. These were H1N1 and H3N2 -- both type 'A' influenza -- as well as type 'B'.
Either H1N1 vaccine or a trivalent (triple shot) vaccine against the three strains should be used to inoculate those at risk, depending on their availability, she said.
"Pandemic and seasonal vaccine in both hemispheres confer the same protection (against H1N1)," Fukuda said.
An estimated 350 million people worldwide have been vaccinated against H1N1, he said.
Dozens of companies make influenza vaccines, including Sanofi-Aventis , GlaxoSmithKline , Novartis , AstraZeneca and CSL . Roche makes the frontline antiviral oseltamivir, marketed as Tamiflu.
The U.S. Centers for Disease Control and Prevention said the WHO pronouncement will not alter U.S. plans for the upcoming flu season. The CDC recommends that everyone over 6 months of age be vaccinated against seasonal flu this year, the most universal recommendation yet for flu vaccines.
The CDC said vaccine manufacturers are predicting an ample supply of U.S. flu vaccine, which will protect against the 2009 H1N1 swine flu virus, plus the most common strains of the H3N2 and the influenza B virus.
The CDC last month said manufacturers have forecast they will have 170 million doses of flu vaccine for the 2010-2011 U.S. flu season.
Some 18,450 people worldwide are confirmed to have died from H1N1 infections, including many pregnant women and young people. But WHO says that it will take at least a year after the pandemic ends to determine the true death toll, which is likely to be much higher.
Seasonal flu kills an estimated 500,000 people a year, 90 percent of them frail elderly people, according to the WHO. The 1957 and 1968 pandemics killed about 2 million and 1 million people, respectively, it says.
The car that is most likely to be stolen in the US
3 August 2010, By The Star
The shiny Cadillac Escalade SUV, a favorite of celebrities like Tiger Woods, is once again the vehicle voted most likely to be stolen, according to an insurance industry group.
The F-250 crew cab pickup, Infiniti G37 two-door car, Dodge Charger with its high-power HEMI engine and Chevrolet Corvette Z06 round out the list of the top five vehicles most likely to be the subject of insurance theft claims.
Least likely targets of thieves are family vehicles like the Volvo S80, Saturn Vue and Nissan Murano, Honda Pilot and Subaru Impreza.
The Highway Loss Data Institute, which is part of the Arlington-based Insurance Institute for Highway Safety, calculated theft claim rates for vehicles from the 2007-2009 model years.
The data reports thefts per insured vehicles on the road.
The Escalade, which starts at $62,495, has ranked as the most-stolen in six of the last seven reports.
A theft claim is filed for one out of every 100 insured Escalades, the group said, and the average insurance payout is $11,934.
That compares with an average of $6,883 for all vehicles.
Almost one in every four Escalade theft claims is for $40,000 or more.
Escalades are equipped with antitheft ignition immobilizers that prevent them from being started without a special key, but that doesn't prevent some thieves from hauling them away on flatbed trucks, said Kim Hazelbaker, senior vice president of the Highway Loss Data Institute.
"Thieves are after chrome, horsepower and HEMIs," she said.
Large SUVs like the Escalade have the highest overall theft losses, with large pickups second. Hazelbaker said trucks are targeted for various reasons.
In addition to their looks, large pickups can be used for work or they might be carrying valuable tools or cargo.
The Institute said the frequency of theft claims for cars and SUVS has been declining since 1998. Pickup thefts also had been on the downswing until 2006, when the Institute noticed an uptick in claims.
Two-door minicars are the least likely group to be targeted.
M-cyclists top road deaths
3 August 2010, By New Straits Times
DESPITE the road accident rate increasing over a 10-year period from 2000, road safety programmes have succeeded in bringing down the number of injuries by 40.2 per cent during that time.
Transport Minister Datuk Seri Kong Cho Ha said the number of accidents had increased by an average of 7.8 per cent annually, from 208,144 cases in 2000 to 397,330 cases last year.
"The increase is due to a 78.8 per cent rise in non-injury accidents, which accounted for 163,918 cases during the last 10 years. This is in view of the increase in the number of registered vehicles, which grew at an annual rate of eight per cent.
"However, accidents that caused injuries decreased by 40.2 per cent, or 17,017 cases, for the same period as a result of the road safety programmes conducted by the government," he said in reply to Senator Ahamat @ Ahamad Yusop.
He said most of the injuries were sustained by motorcyclists and their pillion riders.
Kong said 4,067 of the 6,745 deaths last year involved motorcyclists and pillion riders, two-thirds of whom suffered head injuries.
He said the ministry and other road safety stakeholders had taken steps to reduce accidents. Among them were:
- Making road safety education a part of the school curriculum for pupils, with supplementary activities such as Road Safety Clubs and School Traffic Wardens in schools;
- Road safety awareness campaigns in the media, cinemas, video-sharing site YouTube, networking site Facebook, popular websites and text messages;
- Improving road barriers and designating motorcycles lanes;
- Enforcing the Safety Health and Environment Code for public transport vehicles and goods vehicles; and
- Implementing the Automated Enforcement System to deter road users from committing traffic offences.
To a question from Senator Datuk Rizuan Abdul Hamid, Kong acknowledged that the level of society's compliance with traffic rules was still low.
"Many of our road users continue to speed, beat red lights and over-load their vehicles."
57 more cases of A(H1N1) reported
7 May 2010, By The Star
PETALING JAYA: Another 57 confirmed cases of the influenza A(H1N1) have been reported, bringing the total to 13,889 cases nationwide.
Health director-general Tan Sri Dr Mohd Ismail Merican said that as at 5.30pm on Wednesday, 632 people with influenza-like illness (ILI) were also being treated at various hospitals. Of this, 12% or 76 cases had been confirmed positive for A(H1N1).
The death toll from the pandemic remains at 82.
He also said that as at 8am yesterday, 13 ILI clusters had been reported in Perak, Kelantan, Terengganu, Selangor, Negri Sembilan, Johor and Sarawak.
The clusters included a group of 28 students at MRSM Gerik, Perak and another 17 at SMK Tumpat, Kelantan, two of whom had tested positive.
Deputy Health Minister Datuk Rosnah Rashid Shirlin said there had been an increase in the response for H1N1 vaccines after the media highlighted it early this week.
“So far, 192,747 people have been vaccinated,” Rosnah said, adding that the Government had no plans to order more vaccines.
She also advised the public to get vaccinated at private hospitals and clinics.
Malaysian Medical Association president Dr David Quek said the public should get vaccinated and not take the flu lightly, because ignoring possible symptoms could be deadly.
He also noted an increase in demand for trivalent flu vaccines, which offered protection against three strains of flu including A(H1N1).
In JOHOR BARU, Johor Health department director Dr Mohd Khairi Yaakub said four government clinics had been identified to provide vaccinations for the A(H1N1) virus.
The four clinics are located in Johor Baru, Batu Pahat, Mengkibol in Kluang and Muar.
Dr Mohd Khairi was responding to a complaint by a reader of The Star who claimed that his pregnant wife was denied vaccination at the Sultanah Aminah Hospital in Johor Baru recently.
Selangor top cop’s car stolen
7 May 2010, By The Star
SHAH ALAM: The Selangor Police Chief’s official car has been stolen.
Deputy Comm Datuk Khalid Abu Bakar’s driver had parked the Perdana V6 near a restaurant in Section 9 here yesterday morning to have his breakfast. Half an hour later, it was missing.
He immediately lodged a report at the district police headquarters here.
DCP Khalid, who is attending a meeting overseas, confirmed that his car had been stolen.
He said his driver was quizzed by the investigating team, in particular as to why he had driven the official car out of the Selangor police headquarters when DCP Khalid was abroad.
Apparently, the thief did not realise that the car belonged to the Selangor top cop as it did not bear the police logo.
However, the car has the Global Positioning System installed and the investigating team is tracking it.
Cops scour the country for head of carfencing syndicate
26 April 2010, By Malay Mail
PETALING JAYA: City police are working closely with their counterparts in Kelantan to hunt down Karim Mamak, the gang leader and mastermind behind the carfencing syndicate involving several Road Transport Department (RTD) "insiders".
The Malay Mail was informed yesterday that Kelantan police were volunteering detailed information on the syndicate which issued new grants for stolen vehicles.
Sentul district deputy police chief Superintendent Zainuddin Ahmad said the main suspect, Abd Wahad Omar, 53, also known as Karim Mamak, and his accomplice, Abdul Halim Othman, 45, were still at large.
"Checks on his house showed he had fled but we believe he is still in the country," Zainuddin said.
A police source said Karim Mamak has been moving around regularly to avoid being caught. He could also have been alerted to the police operation due to the other gang members' arrests.
The syndicate was busted last month when Sentul police detained eight suspects in several States and 21 cars valued at RM1.5 million were seized.
The syndicate apparently bought vehicles stolen by others — who have yet to be unidentified — and obtained new registration grants for the cars before selling them as used ones to unsuspecting buyers.
The syndicate's mastermind would buy the stolen vehicles and pass them to his partner, Abdul Halim, who then delivered the vehicles to a workshop in Kota Baru, Kelantan.The engine and chassis numbers would then be changed.
It is believed for the past 10 years, several RTD "insiders" issued new grants for the stolen vehicles — which were then sold as used cars to unsuspecting buyers.
The "insiders" are said to be working in RTD offices in Kelantan, Terengganu, Pahang and Penang.
No comments could be elicited from the RTD on this matter at Press time.
Road automated enforcement system starts next month
11 April 2010, By The Star
KUALA LUMPUR: Malaysia, in aiming to achieve First World safety practices among road users in about 10 to 15 years, will roll out the Automated Enforcement System (AES) on a staggered basis from next month, Road Safety Department director-general Datuk Suret Singh said Sunday.
The pilot project will start with Perak and Selangor while nationwide implementation is scheduled for September this year.
Suret Singh said effective enforcement would deter traffic offenders as the AES would target speed and red light violations for all categories of road users.
"Stricter laws and harsher penalties will not count for much if traffic offenders are not caught and apprehended. However, increasing the probability of being caught with effective enforcement will definitely deter road users from flouting the law," he added.
Suret Singh said that changing the mindset and behaviour of road users from a Third World to a First World mentality would require both education and effective enforcement of traffic laws.
He said the number of vehicles and increase in road kilometres had greatly outpaced the resource available and capability of the country's enforcement personnel.
Given this situation, he said, the "Perception Of Being Caught (POBC)" for committing a traffic offence among road users had dropped to between 25% and 49%.
"As a result, road users are more brazen in committing traffic offences. With the implementation of the AES, we are targeting to raise the POBC to 75 per cent initially and to 95% within two years of implementation," he said.
Malaysia ranks 46th out of 172 countries by the World Health Organisation in fatalities per 10,000 registered vehicles, in its Global Status Report on Road Safety 2009.
The WHO report said controlling speed is an important way of reducing traffic crimes. In Malaysia, there were 75,626 traffic accidents in 1989. Last year, the number increased nearly five-fold to 397,330 while fatalities increased nearly 79% in the same period.
The Road Safety Department's studies showed that the main cause of road mishaps was rampant speed violation and that almost 60% of accidents were speed-related.
To reduce road accidents, speed violation will be the prime target of the speed cameras in the AES programme to effectively tackle the problem.
"Strict enforcement will make Malaysians value their driver's license as much as they value their passports. This is very effective in the developed world. I wish to see this happening in Malaysia. Action to curb recklessness should be severe and uncompromising," he stressed.
Development of new Third Party Bodily Injury and Death Scheme
23 March 2010, By Corp Comm Dept, BNM
RESPONDING to recent public interest and media coverage on the above, we would like to provide the following updates. In developing the new Third Party Bodily Injury and Death (TPBID) Scheme, Bank Negara will be conducting consultation sessions with all relevant stakeholders, which includes consumer associations, transport-related trade associations, the legal fraternity as well as the insurance industry, before the scheme is presented to the Government for consideration.
As the proposed new TPBID scheme is still at the formulation stage, it is premature at this juncture to respond to specific queries on the form or components of the new scheme. Bank Negara expects to conduct the consultation sessions in April, and the new scheme is expected to be implemented by the end of the third quarter of this year.
The rationale for reviewing the current motor insurance framework is aimed at addressing issues raised by the public as well as the insurance industry in providing motor insurance under a Motor Tariff system that has not been adjusted for over 30 years.
This has resulted in a pricing misalignment as Motor Tariffs have not been adjusted to take into account the actual rise in costs such as hospitalisation, medical and general living costs and claims over the same period, particularly for TPBID, which is mandatory under the Road Transport Act 1987.
This has resulted in a situation where for every RM1 premium collected for TPBID cover, an estimated RM2.70 is paid out in the form of claim awards. This imbalance has resulted in inadequate access to TPBID cover and cross-subsidisation.
In the interim, the Malaysian Motor Insurance Pool (MMIP) was established in 1992 by insurers as an insurer of last resort to collectively underwrite cover for vehicles declined by individual players. While this has improved access to TPBID cover, it has not fully resolved the issue of price misalignments.
The proposed new TPBID scheme is intended to balance the concerns and interests of all affected stakeholders to ensure that all motorists are able to obtain a basic motor insurance coverage for TPBID at a reasonable premium that is commensurate with the level of protection provided. The proposed new TPBID scheme will also look into measures to ensure that potential claimants are able to make their claims more expeditiously.
Bar Council opposes new third party motor insurance
7 March 2010, By New Straits Times
KUALA LUMPUR: The Bar Council is opposing the new third party motor insurance scheme, saying it is being drawn up mainly by people in the industry whose objective is to make a profit.
"It will alter the landscape of motor insurance and yet there is no discussion with the public," the council's president, Ragunath Kesavan, told a press conference here yesterday.
"Why is there a need to introduce a new scheme as the present tried and tested tort of liability under the common law system is working well," he said.
Ragunath questioned Bank Negara's motives for not consulting the Bar Council and consumer groups on the proposed scheme.
He said Bank Negara should be transparent so that the public would not be short-changed during an accident or burdened with tedious documents when they file claims.
The Bar Council also wants to know the cost of implementing the scheme and where the money is coming from.
"Our insurance scheme committee estimates that it will cost RM500 million to set it up.
"We do not want the buck to be passed to the public as the new scheme might limit the claims of accident victims," Ragunath said.
He was responding to a statement by Bank Negara on Friday that it is in the early stages of drafting a basic motor insurance coverage.
The central bank also said it would engage with the relevant stakeholders, including consumer and professional bodies and the industry's associations.
But Ragunath said Bank Negara told the council on Thursday that it would be informed when the scheme is finalised.
He said the scheme, which was announced during the 2010 budget, is expected to be implemented by the middle of this year.
"We expect it to be launched on July 1. With another few months to go, they should have consulted us from the start," he said.
The Bar Council will hold nationwide roadshows to gather public feedback on the scheme.
"We do not want to be caught by any surprise that favours the insurance industry," he added.
Reveal details of insurance scheme, Bank Negara urged
7 March 2010, By The Star
KUALA LUMPUR: The Bar Council has urged Bank Negara to reveal details of a proposed basic motor insurance coverage for third party bodily injury and death.
The council is opposed to the proposal, saying the working committees that had been established comprised solely industry groups, namely insurance companies.
The council yesterday expressed concern as the central bank had yet to consult any other public interest group including the council despite the possibility that the new scheme might be implemented in July.
“This indicates that profitability of the insurers is an overriding factor behind the proposed scheme,” council president Ragunath Kesavan said at a press conference here yesterday.
“The proposal seems to be driven solely by the insurance industry on the basis of profitability without any consideration being given to public interest or social responsibility,” he added.
The central bank on Friday announced that it was in the early stages of drafting the new scheme, adding that it would be engaging consumers, trade and industry associations as well as professional bodies but did not specify when.
The scheme was first highlighted during the 2010 Budget announcement in September last year.
According to the council, the proposed scheme suggests that a new body take over the responsibility for third party bodily injury and death.
Ragunath said the council had estimated that the initial cost of setting up the scheme would amount to at least RM500mil, which might burden the public.
Proposed Third-Party Motor Insurance Scheme Still At Early Stage
5 March 2010, By BERNAMA
KUALA LUMPUR -- The proposed new basic motor insurance coverage for third-party bodily injury and death (TPBID) is still at the formulation stage, Bank Negara Malaysia said on Friday.
The central bank will be engaging with the relevant stakeholders, which include consumer, trade and industry associations as well as professional bodies, as part of the normal consultation process undertaken by Bank Negara for major initiatives.
Bank Negara said in a statement that it has been working closely with the relevant authorities in formulating the new TPBID scheme.
"These consultation sessions will serve as the platform to obtain feedback from the relevant stakeholders, prior to submitting the proposal for the new TPBID scheme to the government for consideration," it said.
The government, during the Budget 2010 announcement, had announced the need to provide a basic motor insurance coverage for TPBID, at a reasonable premium that is commensurate with the level of protection provided.
JPJ bars 23 buses from leaving terminal
12 February 2010, By The Star
BUTTERWORTH: Twenty-three express buses were prevented from ferrying any passengers out of the Butterworth Bus Terminal here for flouting traffic and safety rules.
Penang Road Transport Department (JPJ) director Datuk Hassan Yaccob said among the offences were using faulty tyres, not meeting safety specifications, using retread tyres and not having a second driver.
They were among 511 buses checked at the terminal since Monday, he told reporters here after heading an Ops Sikap 21 operation at the terminal here last night, reported Bernama.
In KUALA LUMPUR, Road Safety Department director-general Datuk Suret Singh said lorry drivers who failed to move their stalled vehicles to safer places when requested would be deemed as breaking the law.
“Stalled vehicles should not be left on the emergency lanes for long hours. Ideally, stalled vehicles should be towed away in less than 20 minutes,” he said at a press conference yesterday.
The laws were highlighted in view of the recent tragedy where a family of six were killed when their car skidded and rammed into a stalled lorry along an emergency lane.
Stalled Vehicles By The Roadside Must Be Removed Immediately
12 February 2010, By BERNAMA
KUALA LUMPUR -- Heavy vehicles that break down and are parked by the roadside or emergency lane, especially along the expressways, must be removed within 20 minutes to avoid undesired incidents.
The Director-General of the Road Safety Department (JKJR), Datuk Suret Singh, said Section 65 of the Road Transport Act 1987 empowered the police, the mayor concerned and Director-General of the Highway Authority to ensure that the stalled vehicle by the roadside were removed immediately.
He said this provision was seldom enforced and lately fatalities due to stalled vehicles by the roadside had been on the rise.
"Now, I hope the parties concerned especially the Malaysian Highway Authority (MHA) will speed up the removal of the stalled vehicles immediately within 20 minutes," he told reporters after monitoring the traffic movement in conjunction with the Chinese New Year celebration, here Thursday.
He said he would hold discussions with the relevant agencies to ensure that the provision of this act could be enforced immediately.
Suret also urged motorists, including drivers of public and commercial vehicles, to place the triangular emergency sign 50 meters away from vehicles which had stalled even on the emergency lane.
This would ensure that other road users would be aware of the vehicles that had stopped and prevent undesired incidents, he said.
Meanwhile, the general manager of corporate communications of Projek Lebuhraya Utara Selatan (PLUS) Berhad, Khalilah Mohd Talha, said in a media statement Thursday that PLUSRonda teams and the expressway maintenance staff would conduct continuous patrols 24 hours daily.
"PLUS has 130 PLUSRonda teams with more than 350 staff who are always willing to offer assistance to the expressway users," she said.
Road Deaths: 6,700 died last year
25 January 2010, By New Straits Times
KUALA LUMPUR: Some 6,700 lives were lost on Malaysian roads last year — the highest number recorded in the last five years.
These fatal accidents were a result of speeding, tailgating and not wearing helmets.
About 85 per cent of the victims were motorists and motorcyclists while the number of those killed in accidents involving buses, vans and four-wheel drive vehicles had dropped.
The authorities say that while they have been successful in creating awareness of good driving habits in most of their target groups, there are still people who are reckless and continue to turn a blind eye to safety awareness efforts.
Road Safety Department director general Datuk Suret Singh said most Malaysians are now better drivers but a handful continue to break road rules.
“We see a pattern. People now talk about road safety more than before. More and more people feel strongly about it but there are those who are still reckless,” he said yesterday.
The causes of fatalities, he added, are still the same — speeding, tailgating, overtaking on double lanes and for motorcyclists, not wearing helmets.
Some 10 years ago, the number of fatalities was 9,000. But due to constant campaigns and enforcement, the number dropped to 6,200.
Two years ago, the number started rising to 6,500. Last year, it went up by more than 200.
Suret said the number of motorists who strapped on rear seat belts had dropped from 50 per cent to 20 per cent.
“This is because of complacency. They feel nothing will happen to them.”
To reduce fatalities among motorcyclists, the department got private companies to sponsor helmets and some 145,000 Sirim-approved helmets were given to those with poor quality helmets.
There are 8.5 million motorcycles nationwide. Suret said those in rural areas and the city’s outskirts did not wear safety helmets.
“City folk wear helmets for fear of being caught.” Suret said the department would hold walkabouts by political leaders to create greater awareness on safe riding among motorcyclists.
Asked about commercial vehicles, Suret said there was a 35 per cent drop in fatalities because the operating licences of companies depended on their driving records.
Other measures such as regular urine checks of drivers to detect those taking drugs and checking on the safety of buses at depots before their journeys have had an impact on reducing the number of accidents.
Furthermore, some of the bigger companies have also installed speed limiters and global positioning system devices in buses to check on the activities of drivers.
Suret said his department was awaiting the “Automated Enforcement Cameras” enforcement system to be introduced at accident-prone areas later this year to reduce accidents.
“Once installed, motorists will be forced to follow road rules.”
Mum and paralysed son cheated of insurance payout
21 January 2010, By The Star
JOHOR BARU: A mother, whose nine-year-old son was paralysed from the waist down in a road accident in 1992 was awarded RM250,000 in insurance damage by a court.
But her lawyer gave her only RM40,000 and allegedly kept the rest. Police are now looking for the lawyer.
The female lawyer is said to have paid her client only a part of the insurance payout about 18 years ago.
It is learnt that a police report was only lodged recently after the woman discovered that the lawyer, who had kept more than RM120,000 purportedly to file for an appeal, had not done anything.
Sources said the lawyer had told the mother that she had placed about RM17,000 in Amanah Raya so the boy could only withdraw the money when he reached the age of 21.
However, the mother got a shock when, after her son turned 21, the public trustee informed her that no such deposit was ever made. She then lodged a police report and a complaint with the Bar Council.
It is learnt that out of the total insurance payout, the woman only received 16% while the rest had been kept by the lawyer, claiming that it was for legal fees, the Amanah Raya deposit and costs to file for an appeal.
Police investigations showed that the lawyer has since disappeared and that the firm closed down several years ago.
When contacted, Johor Baru South OCPD Asst Comm Zainuddin Yaacob confirmed the case and said investigations were being carried out under Section 409 of the Penal Code for CBT.
If convicted, the lawyer faces a jail term of between two and 20 years, whipping and a fine.
“We are looking for this lawyer to assist in our investigations, he said, appealing to those with information to contact the police hotline at 07-221 2999.
Federal Court reverses its decision in landmark land case
21 January 2010, By The Star
PUTRAJAYA: The Federal Court on Thursday departed from its judgement nearly 10 years ago in the Adorna Properties Sdn Bhd vs Boonsom Boonyanit case, plugging a loophole in the law to thus allow landowners who lost their land through fraudulent means to redeem their right to the property.
In its landmark unanimous ruling, the five-man bench led by Chief Justice Zaki Azmi held that land transferred by fraudulent means will no longer be legally accepted.
Others on the bench were Court of Appeal president Alauddin Mohd Sheriff, Chief Judge of Malaya Arifin Zakaria and Federal Court judges Zulkefli Ahmad Makinudin and James Foong Cheng Yuen.
The court’s previous judgement in 2000 was made by former chief justice Eusoff Chin.
The decision in Adorna Properties Sdn Bhd v Boonsom Boonyanit concerned the interpretation of the law as laid out in Section 340 of the National Land Code (NLC) 1965, resulting in cases where landowners could lose their lands even though they hold a valid title.
Boonsom Boonyanit, a Thai national, owned some land in Penang. She eventually discovered that an impostor claiming to be her -- and with supporting identification documents as well as statutory declarations -- had declared that she had lost the original title and managed to obtain a replacement title from the land office.
The impostor subsequently sold the land to Adorna Properties, which bought it on good faith, and did not suspect that there was anything amiss in the transaction.
When Boonyanit sued for the return of the land at the Penang High Court, she was unsuccessful. She appealed to the Court of Appeal (COA), which decided in her favour.
However, Adorna Properties then made an appeal to the Federal Court, and won. In essence, Boonyanit -- who has since passed away -- lost her land without receiving a single sen for it.
Because it was a decision of the highest court in the land, it has to be followed by every lower court in the country.
This meant that the law could not protect landowners even if they were able to prove the title is theirs, as long as it could be proven that the purchaser bought it on good faith.
Fraud Continues To Be Serious Threat Within Corporate Malaysia
11 January 2010, By BERNAMA
KUALA LUMPUR -- Fraud continues to be a serious threat within corporate Malaysia, with 49 per cent of Malaysian companies surveyed, experiencing at least one incidence of it.
The Head of KPMG Forensic Malaysia, Tan Kim Chuan said the threat of fraud came mostly from within the organisation.
According to Tan, internally perpetrated fraud by management and non-management employees, accounted for 88 per cent of the total reported fraud value of over RM60 million during the survey period.
Based on the survey, he predicted that fraud, especially that which is Information Technology (IT) related, is expected to increase due the high usage of IT products in companies.
A total of 47 per cent of respondents who had experienced fraud within their organisation disclosed that the total losses suffered during the survey period was RM63.95 million.
The remaining 53 per cent were unsure of the amount, Tan told reporters after the launch of the KPMG Fraud Survey Report 2009 at the Securities Commission, here Monday.
The report was launched by Securities Commission (SC) chairman Tan Sri Zarinah Anwar.
Tan said the survey, conducted from January 2006 to December 2008, was a call for commitment to tackle fraud incidents robustly in an environment underpinned by a culture of compliance and an appreciation of the values of integrity and honesty.
He said according to the survey, a total of 714 separate cases of fraud were reported by 84 per cent of respondents who had experienced it within their organisation, while the remaining 16 per cent were unsure of the number of incidents.
He said greed/lifestyle and personal financial pressure were cited as the two most common motivations for fraud.
He also said that the theft of cash and inventory, fraudulent expense claims followed by kickbacks, were the most common types of fraud perpetrated.
"The theft of physical assets appeared to be a popular category of fraud perpetrated among non-management level employees and external parties.Management level employees were more prone to commiting the theft of funds (outgoing)," Tan highlighted.
He added that companies must come up with measures or a system to detect fraud to minimise fraud cost.
"Before hiring, companies must also undertake screening.The most significant method used to detect fraud was internal control procedures," he noted.
Other methods in this regard were notification by employees, internal audit review, notification by customer or suppliers and anonymous letters, informants or whistleblowers.
Alarming Rise In Number Of Diabetics In Malaysia
11 January 2010, By BERNAMA
KUALA LUMPUR -- The number of diabetics in the country has increased by almost 80 per cent in the last 10 years from 1996-2006 to 1.4 million adults above the age of 30.
Director-General of Health Tan Sri Dr Mohd Ismail Merican said what was alarming was that almost 36 per cent of them were undiagnosed, resulting in complications later on and would require more intensive medical care, putting great strain on the existing overstretched health services.
In his monthly column in the latest Malaysian Medical Association (MMA) newsletter, he said lifestyle related changes were the main factors influencing the increase of diabetes in the country.
He said lifestyle modifications like weight loss, changes in diet and increased physical activities would greatly help in controlling the disease.
Dr Ismail said obesity was another trend in Malaysia, since the National Health and Morbidity Survey in 2006, showed that the number of obese had also increased by almost 200 per cent over a 10 year period from 1996.
"This is a worrying trend, as obesity remains the foundation for the development of diabetes, particularly in our population," he said.
He said the ministry had recently launched the "Clinical Practice Guidelines: Management of Type 2 Diabetes Mellitus & Acute" for health care providers.
He added that the Health Ministry's initiatives to improve the management and control of diabetes in patients include introducing blood glucose (HbA1c) testing and the use of diabetes card for continuous monitoring.
Initiatives to screen for diabetic complication include providing micro albumin testing kits at hospitals and health centres.
Dr Ismail said the government had allocated RM7 million last year for management of diabetes and hypertension in hospitals which would be utilised to buy new drugs and testing kits.
Ministry Ready For Second Wave Of H1N1
16 December 2009, By BERNAMA
KUALA LUMPUR -- The Health Ministry is ready for the second wave of Influenza A (H1N1), Minister Datuk Seri Liow Tiong Lai said today.
He said the ministry was giving emphasis to three aspects -- stepping up monitoring of H1N1 in all states, enhancing treatment at all hospitals and intensifying communication through the media as well as the campaign against H1N1.
"All intensive care units (ICU) are equipped with equipment vital to treating H1N1 and we are raising the stockpile of medicine," he told reporters at the lobby of Parliament House, Tuesday.
Liow said the H1N1 preventive measures should be ongoing and the people must be reminded to be on guard at all times.
"Do not be complacent that H1N1 is no more. Everyone must be alert at all times. The disease is prevalent in China, Hong Kong, Europe and the United States," he said.
Liow said that since the H1N1 awareness campaign was held jointly with non-governmental organisations (NGOs), private clinics and the public, the incidence of H1N1 had dropped.
"Our campaign has been effective and the people have been responding positively to the ministry's advice on personal hygiene and the environment in checking the disease," he said.
Liow also said that the body temperature scanners were being retained at all entry points of the country.
Parliament: GST Bill tabled for first reading
16 December 2009, By The Star
KUALA LUMPUR: The much anticipated Goods and Services Tax (GST) bill is tabled in the Dewan Rakyat for first reading by Finance Minister II Datuk Seri Ahmad Husni Hanadzlah.
He also told the House that the second reading of the bill would be in the meeting of the Dewan Rakyat scheduled for March next year.
Later, at the Parliament Lobby, Ahmad Husni said the GST of 4% would be implemented in the middle of 2011.
With the implementation of GST, Husni said it would be a win-win situation for all as the Government would be receiving an additional RM1bil in revenue for the first year - from the current RM12bil to RM13bil.
At the same time, he said businesses would save RM4.1bil in taxes and the export sector would save RM1.4bil.
"The Government is proposing to impose GST at a rate which is lower than the sales and services tax rates, and to allow certain exemptions from GST, expecially on essential goods such as agricultural products - vegetables, basic food like rice, sugar, flour, cooking oil, fish, meat and chicken - so as to ensure that it will not burden the rakyat at large, especially the poor and the lower income group.
"The main purpose for the Government to introduce GST is to make the current taxation system more comprehensive, efficient, effective, transparent and business friendly.
"The sales and services tax will be abolished and be replaced with GST, which is a more efficient tax system in terms of cost effectiveness," he said.
Ahmad Husni said based on the proposed model, businesses were expected to benefit in terms of lower cost of doing business as GST was not considered as cost to business.
"GST will be able to reduce bureaucratic practices in the management and administration of the country's tax system and overcome the various inherent weaknesses that exist in the imposition of sales tax and service tax," he said.
He said companies with revenue of RM500,000 and below would be exempted from imposing GST and about 70% of small and medium sized industries would also be exempted.
Asked whether GST would have any impact on inflation, Ahmad Husni said: "No. It will make businesses more competitive as the cost of business has reduced."
Parliament: No plans to scrap third-party insurance coverage
24 November 2009, By The Star
KUALA LUMPUR: The Government has no plans to scrap third-party insurance and insurance coverage for old cars valued at RM10,000 and below, Finance Minister Datuk Seri Najib Tun Razak said.
He added that the difficulty faced by the public to get third-party insurance was because insurers were unwilling to pay out claims higher than the value of premium imposed on such cars.
Although insurers were more careful in offering individual third party motor insurance, the public can get third-party coverage from the Malaysian Motor Insurance Pool (MMIP), Najib said in a written reply Siti Zailah Mohd Yusof (PAS-Rantau Panjang).
MMIP is a pool contributed by all insurance companies and deemed as the insurer of last resort.
“The Finance Ministry and Bank Negara Malaysia is now making a study on creating an appropriate motor insurance scheme.
“The plan, which was announced in the Budget 2010 speech, will offer an insurance coverage scheme with reasonable premium rates.
“The new scheme will allow the process of making insurance claims easier and faster,” he said in a written reply Siti Zailah Mohd Yusof (PAS-Rantau Panjang).
Najib said insurance coverage from MMIP could be obtained from its pool of agents, such as Multi-Purpose Insurance Bhd, Uni.Asia General Insurance Bhd and Pos Malaysia Bhd.
Insurance plan to 'consider interests of both parties'
17 November 2009, By New StraitsTimes
THE government is working on a plan which will look after the interests of both motor vehicle owners and insurance providers, Prime Minister Datuk Seri Najib Razak said yesterday.
This is because many insurance providers are wary of offering policies for vehicles that are more than 10 years old and this has resulted in the owners being left with no choice but to take out policies at high premium.
Najib, in a written reply to Lim Lip Eng (DAP-Segambut), said that large insurance companies suffered big losses because of the Motor Insurance Tariff premiums which have remained unchanged since 1978.
"Although insurance providers are given flexibility since 1996 to impose higher premium rates based on the Bank Negara limit, it is not enough to cover business costs because of the increasing number of claims," he said.
Lim had asked Najib, who is also the finance minister, to explain why owners of vehicles that are more than 10 years old could only buy the Malaysian Motor Insurance Pool (MMIP) policies at post offices at a higher premium.
The MMIP is a high-risk insurance pool that provides insurance to vehicle owners who face difficulty in obtaining insurance from the commercial insurance market.
Najib explained this could be because the other insurance providers did not want to underwrite such a risk.
"Pos Malaysia, like other motor insurance agents, can only offer insurance protection based on the underwriting strategy of the provider."
He said in general, most insurance providers were cautious when offering protection, especially third party protection, for cars older than 10 years due to potentially hefty losses.
He said it was compulsory for MMIP to offer insurance policies to owners of any vehicles and as such, they were allowed to impose higher premiums to balance out the risk.
He said apart from the 684 Pos Malaysia offices nationwide, the MMIP insurance is also available at any Multi-Purpose Insurans Bhd and Uni Asia General Insurance Berhad branch.
PM: Only MMIP interested in underwriting risks
17 November 2009, By The Star
AT THE DEWAN RAKYAT -
OWNERS of vehicles that are aged more than 10 years could only get motor insurance through the Malaysian Motor Insurance Pool (MMIP) because other insurers were not interested in underwriting the risks, said Prime Minister Datuk Seri Najib Tun Razak.
“In general, insurance companies were more cautious about offering insurance protection especially on third party coverage to certain vehicles such as those more than 10- years-old because the losses were great,” he said in a written reply to Lim Lip Eng (DAP-Segambut).
Lim had asked about steps taken to resolve issues relating to vehicle owners who could not buy insurance for their vehicles, which were older than 10 years, except through the MMIP at the post-office and at a higher premium.
Najib, who is also Finance Minister, said Pos Malaysia like other motor insurance, could only offer motor insurance coverage based on the underwriting strategy of the insurers.
The high underwriters’ losses were also due to motor insurance premiums that were hinged on the motor tariff that had not been examined since it was introduced in 1978, he added.
He said although the underwriters were given the flexibility to impose additional premiums or loading based on the limit defined by Bank Negara since 1996, it was still not adequate in bearing current business cost since the amount of claims were getting higher.
Najib also said that MMIP was set up as a last-resort insurer to ensure vehicle owners get insured and this was the reason why they were allowed to impose higher premium to balance out the risk.
He also said the Government was considering a suggestion on a basic protection framework for motor insurance that would consider the consumers and the industry’s interests to ensure that the insurance services would continue to be available.
Insurers to adopt new vehicle valuation system
7 November 2009, By Business Times
Insures and takaful operators have agreed to incorporate into their motor insurance policy a reference point to determine the market value of vehicles.
Last month, both Bank Negara Malaysia and the General Insurance Association of Malaysia (Piam) endorsed Insurance Services Malaysia's automotive business intelligence system (ISM-ABI).
The ISM-ABI is the only approved system for vehicle valuation among financial services companies in Malaysia.
"The introduction of the new system for motor insurance is in line with practices in other developed markets," said ISM chief executive officer Carl Rajendram in Petaling Jaya yesterday.
Rajendram said that most major motor insurers and takaful operators are in the process of adopting the new and more transparent system for motor insurance starting 2010.
"It is part of the modernisation of Malaysia's motor insurance and takaful cover announced recently and will ultimately benefit the consumers, insurance and takaful companies," Rajendram said.
"The entire automotive industry is moving towards greater competitiveness and efficiency and we are confident that the ISM-ABI will play a pivotal role in driving this objective among all stakeholders," he explained.
With the new service from ISM, insurance and takaful companies now have the ability to generate renewal notices with the current year sum insured with the corresponding premium to be paid.
"The services increase transparency in the whole motor insurance process not only for purchasing insurance but also during claims," Rajendram said.
With the new system from ISM, insurers and takaful operators may also choose to pre-determine the compensation upon theft and total loss claims by referencing the database.
"Consumers are also able to verify the vehicle's market value themselves from the website and access the same information that insurers are accessing," he said.
The new service will reduce uncertainty when insuring a vehicle and reduce dissatisfaction that consumers experience when making a claim.
Senator Raises Issue Over Car Theft
5 November 2009, By BERNAMA
KUANTAN -- The first question that Ng Fook Heng raised at the Dewan Negara after his appointment as senator on July 9 was what the government was doing to combat car theft.
Ironically, four months down the road, he lost his Toyota Fortuner, which also serves as his official car, to car thieves early today.
"This morning, at about 7.10am, I found my car which was parked in my porch in Jalan Air Puteh here missing.
"My house door was tied with a wire and I believe it was to prevent me from going outside in case I noticed the theft," he told reporters here today.
Ng, who is also Paya Besar MCA division chairman, said he believed that the theft occurred past midnight.
"I had raised the issue (carjacking) in the Dewan Negara. It was my first question after being appointed senator.
"This is not personal but according to the home minister, when I asked the question, statistics showed that from 2004 until May, 2009, 63,182 cars of various models were reported missing.
I hope that the government seriously tackles this," he said, adding that he had just bought the car for RM173,000 on Sept 17.
It was double jeopardy for Ng today because he found a parking ticket on the car which he had loaned from a friend to meet the press.
"What a misfortune today. I just lost my car and now I receive a summons," he said, amused.
RM1.1mil for accident victim
5 November 2009, By The Star
PUTRAJAYA: A mother, who was paralysed after a lorry driven by her husband collided with a car 11 years ago, was awarded about RM1.1mil in damages by the Court of Appeal.
Justices Tengku Datuk Baharudin Shah Tengku Mahmud, Datuk Sulong Matjeraie and Datuk T. Selventhir-anathan allowed yesterday the ap-peal by Nauren Abdul Manaf, 54, with costs and interest.
She also received RM302,400 for nursing care, RM93,600 for diapers, RM200,000 for future care, general damages of RM400,000 for paralysis suffered, RM100,000 for loss of amenities and RM30,000 in costs.
The quorum, however, maintained the High Court’s decision not to award costs to Nauren over the loss of income for her husband.
The mother of two had brought her case to the Court of Appeal after the Seremban High Court on March 8, 2006 reduced some of the damages quantum awarded by the Sessions Court following an appeal by the defendant, Chew Ming Thai.
On Nov 5, 2004, the Seremban Sessions Court held Chew fully responsible for the accident and ordered him to pay RM1,478,672.94 in general and special damages.
The lorry driven by Nauren’s husband collided with a car driven by Chew at KM271 of the North-South Expressway near Seremban on Aug 23, 1998.
Nauren’s counsel Jerald Gomez submitted that as a result of the accident, Nauren developed an illness called post-traumatic dystrophy, also known as complex regional pain syndrome, causing her daily pain.
He said a specialist, Dr Edmond Ong, had testified that Nauren would require full-time care because she might eventually be bedridden.
Chew’s counsel Shanta Mohan urged the court to maintain the quantum of RM200,000 awarded by the High Court for general damages on the ground that the amount was the highest award given by law.
He added that there was no medical evidence to indicate Nauren was totally paralysed.
Sg Golok now hot spot for hot cars
2 November 2009, By New Straits Times
SUNGAI GOLOK: This border town, which was previously known for its nightlife, is now the transit point for stolen Malaysian semi-luxury cars entering the Thai market.
Sungai Golok police chief Col Tangnungsak Wangsupat said more than 10 Malaysian stolen cars had been seized since early this year.
"The cars were seized at several locations in the sub-province here for several offences, including entry without valid documents and being used in drug smuggling activities.
"Our investigations showed that the chassis number of the cars had been tampered with. The cars were stolen in Kelantan and brought here to be sold at lower prices."
Wangsupat said the cars were priced between RM80,000 and RM90,000, with the majority of buyers from the high-income group.
"The smugglers normally bring in the cars into Thailand via the legal checkpoints.
"Although they do not have valid documents, they can still get past enforcement officers on duty there as these types of cars are normally not checked.
"The cars will then be taken to workshops for modifications, including a new paint job as well as the removal of chassis and engine numbers, before being sold."
Increase In Vehicles Contribute To Road Accidents
27 October 2009, By BERNAMA
KUALA LUMPUR -- The 80 per cent increase in the number of registered vehicles over the last 10 years is one of the three main factors contributing to road accidents during the festive season, the Dewan Rakyat was told Tuesday.
Deputy Transport Minister Datuk Abdul Rahim Bakri said 17,971,901 vehicles were registered in 2008, while from January to August this year the number had increased to 18,673,523.
Another contributing factor was the increase in the number of driving licence holders, with a 47 per cent rise in the last 10 years.
"In 2008 there were only 457,613 licence holders while 344,777 new licence holders were registered from January to August this year.
"This means there is an average of 43,097 new licence holders, and it is projected that there will be 517,165 new licence holders for 2009," he said.
He was replying to a question from Datuk Dr Abdulla Md Zin (BN-Besut) who had asked for an explanation on the causes of accidents and the steps taken to overcome the problem.
When commenting further, Abdul Rahim said other contributing factors were reckless drivers and motorcyclists, those who did not fasten their rear and front seatbelts and those who did not use helmets.
Meanwhile, to a question from Er Teck Hwa (DAP-Bakri), Abdul Rahim said about RM8 million was allocated for rear seatbelt campaigns conducted by the Road Safety Department (JKJR) since the regulation was implemented early this year.
He said it included expenditure for print, radio, television and cinema advertisements as well as advocacy campaigns by JKJR headquarters and its state offices.
Abdul Rahim said the police, until August this year, had issued 803 summonses for not adhering to the rear seatbelt regulation.
"Meanwhile the Road Transport Department issued 9,379 summonses until September 2009," he said in reply to Er's question.
Er had asked about the amount spent since the campaign was launched and why enforcement was not implemented although free seatbelt installation was offered to certain car companies such as Proton, Perodua and Honda.
The government has agreed to give three years, starting this January, for those vehicles without rear seatbelts to have them installed.
After Dec 31, 2011 legal action will be taken on any owner failing to install rear seatbelts in their vehicle, which is a compound of not more than RM300.
Passengers who do not adhere to the rear seatbelt regulation will be fined RM2,000 or jailed not more than six months for a first offence, and RM4,000 or jail of not more than 12 months, or both for a second and consequent offences.
NIAM Sees Continuing Demand For Bijak Malaysia Plan
26 October 2009, By BERNAMA
KUALA LUMPUR -- Bijak Malaysia, a whole life insurance plan developed by the National Insurance Association of Malaysia (NIAM), has continued to be popular among Malaysians.
NIAM chairman Koh Heng Kong said in a statement Monday that the plan had provided life insurance coverage to more than 43,000 Malaysians and generated over RM70 million in sales currently.
The association's head of life products, Raymond Lew, said the unique propositions of Bijak Malaysia appealed particularly to individuals below 40 years old.
"The most popular are Plan 1 and Plan 2, with monthly contribution of RM100 and RM200 respectively," Lew said, adding that there was also a sizeable number investing RM500 per month.
Bijak Malaysia, considered to be a six-star comprehensive whole life plan, provides guaranteed protection coverage for life at an affordable premium during productive working years.
It is pre-packaged and the guaranteed acceptance easy enrolment process makes application a hassle-free experience, according to NIAM.
The association said it was also planning to launch new affordable products to meet the needs and requirements of the Malaysian public.
The products were currently being developed, it added.
Public-Private Insurance Partnerships Will Help During Bad Times, Says Zeti
20 October 2009, By BERNAMA
KUALA LUMPUR -- Public-private partnerships between the government and insurance players will be essential in providing suitable insurance schemes and developing risk mitigating mechanisms particularly when facing catastrophies, says Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz.
With the increasing catastrophies that have been associated with global climate change and pandemics, such partnerships will be important when coping up with the resulting losses.
"According to a recent study, economic losses caused by natural and man-made catastrophes around the world in 2008 amounted to US$269 billion.
"Asia accounted for the top five worst catastrophes in terms of fatalities in 2008. The recent natural disasters in Southeast Asia and the Pacific Islands also resulted in major destruction," she said in her keynote address before officiating the 21st Federation of Afro-Asian Insurance and Reinsurance Conference 2009 here Tuesday.
Zeti said greater collaborative efforts among industry players in the region in the form of technical assistance and pooling of resources would increase capacity and expertise to underwrite such risks.
"Through such collaboration, the ability for the insurance industry to underwrite and reinsure risks based on the requirements of the region can be significantly enhanced," she added.
While several of the advanced economies would continue to be weighed down by weak growth as the slow process of financial resolution continues and the high unemployment delays the recovery process, emerging economies, in general, and Asia in particular, have shown a high degree of resilience, Zeti said.
"While the emerging economies are expected to lead the recovery process, there needs to be a reassessment of the strategies for future growth. Over reliance on export orientation to the traditional markets would increase the vulnerability to external developments," she added.
Going forward, emerging economies now need to achieve a greater balance between external-oriented development strategies and the strengthening of their domestic demand, said the central bank governor.
Zeti said the evolving trends and encouraging growth prospects in respective regions present tremendous opportunities for the insurance and reinsurance industry.
She said the overall aggregate financial position of insurers in the crisis affected countries have continued to be strong, and generally not severely affected by liquidity pressures or exposures in the credit derivatives markets.
Earlier losses by insurers in financial market activities had resulted in a shift to "back-to-basics" models, focusing on core underwriting business instead of heavily relying on investments as the main source of earnings.
The industry had also benefited from the subsequent upturn in the pricing cycle which has fortified the capital position of insurers and provided the support to maintaining sound underwriting standards.
Zeti said these conditions have placed the industry on a much stronger position to withstand the challenges from the current global financial turmoil.
She said prospects for higher insurance penetration rate in the region continued to remain positive.
In 2008, insurance premiums accounted for 5.95 per cent of gross domestic product (GDP) in Asia and 3.57 per cent of GDP in Africa compared to 7.29 per cent in America and 7.46 per cent in Europe.
She said the changing priorities of the growing population in the region, largely comprising a young workforce in the middle income group, have also enhanced the demand for investment-linked and wealth management products.
5th Young ASEAN Manager Award 2009, Lao PDR First Malaysian Recipient for the Young ASEAN Manager Award
9 October 2009, By AITRI
Vientiane -- The 5th Young Asean Manager Award which was presented by His Excellency Mr Sila Viengkeo, Permanent Secretary of Ministry of Finance of Lao PDR in Vientiane saw the first Malaysian, Sophia Ch’ng Sok Heang receiving the prestigious award. She is also the first female recipient for the award. Sophia, who is currently the Senior Vice President & Deputy Head Finance and Corporate Affairs with Great Eastern Life Assurance (Malaysia) Berhad, has truly made Malaysia proud.
This prestigious award is organized by the ASEAN Insurance Council (AIC) and the ASEAN Insurance Training and Research Institute (AITRI). The award is to recognize young ASEAN leaders who have demonstrated excellent achievements, dedication and commitment in contributing towards the development and growth of the insurance industry. The other two finalists were Shamsudin Yusoff from Etiqa (Malaysia) and Brata Wibawa Djojo from PT Lippo General Insurance (Indonesia). A total of 24 contestants from 5 different ASEAN countries, namely Indonesia, Malaysia, Singapore, Thailand and Vietnam, were nominated for the award but only 3 were selected for the final selection in Vientiane.
In her brief speech, she mentioned that the award is not just recognition for her achievement but also recognition to her company, actuarial profession and country. Moving forward, she is determined to contribute more, and looking forward to sharing and working together under the spirit of ASEAN for the growth and progression of the insurance industry in this region.
This award is an annual event held in conjunction with the ASEAN Insurance Regulators and Council meeting.
Lorry Driver Pleads Not Guilty To Cheating In RM170,000 Insurance Claim
13 October 2009, By BERNAMA
KUALA LUMPUR -- A lorry driver pleaded not guilty in the Sessions Court here on Tuesday to cheating an insurance company employee in an insurance claim for RM170,000.
Jaafar Ashara, 36, and another who is still at large, are charged with cheating Kondal Rao Noorkiah, 44, by deceiving him into believing that he was involved in a road accident an inducing her to approve and pay the claim.
The offence is alleged to have been committed at Uni Asia General Insurans Bhd in Jalan Sultan Ismail on June 16, 2001.
Jaafar, who has three children, is not represented.
Judge Azizah Mahmud allowed him bail of RM10,000 in one surety and set Oct 27 for Jaafar to appoint a lawyer.
Deputy public prosecutor Norasyikin Ahmad prosecuted.
Cars Without Valid Road Tax On Malaysian Roads
15 September 2009, By BERNAMA
KUALA LUMPUR -- Thousands of cars are plying the roads without valid road tax because their owners are unable to get insurance coverage, according to the Federation of Malaysian Consumers Associations (Fomca).
Its secretary-general, Muhammad Shaaini Abdullah, told Bernama that these were owners of cars of more than 10 years old which were considered "risky" and insurance companies were reluctant to provide cover for them.
He said that should such vehicles meet with an accident it would cause tremendous problems for the authorities, owners and victims because no claim could be made as there was no insurance coverage.
Director-General of the Road Transport Department Datuk Solah Mat Hassan confirmed that the department had received several complaints from motorists about not being able to obtain insurance coverage for such vehicles although they were roadworthy.
Under the road transport act, he, said, it was mandatory for the motorist to get at least a third party insurance coverage before the department could renew the road tax.
"While we sympathise with the motorists, we cannot do anything but enforce the law if they are found to be without valid road tax," he added.
He called on the insurance companies to find an amicable solution to the problem.
In response to Bernama's query via e-mail, General Insurance Association of Malaysia (PIAM) executive director C.F. Lim said:
"Currently the motor insurance market is experiencing high loss. As such, many insurers have either declined or are scaling back on underwriting risks, especially third party insurance and insurance for older vehicles."
However, he said, motorists who found it difficult to get the required insurance could obtain it from the Malaysian Motor Insurance Pool (MMIP) jointly operated by all the 33 general insurance companies in the country.
Lim said the MMIP provided insurance for vehicles which were considered high risk and those unable to obtain from the normal market.
"In other words, the MMIP is the insurer of last resort."
The MMIP had formed a strategic partnership with Pos Malaysia since July, and motorists could obtain the insurance from the 684 Pos Malaysia branches in the country.
Since Pos Malaysia was also an agent for the Road Transport Department, motorists could also renew their road tax at these outlets which were convenient one-stop centres, he added.
However, Muhammad said, many motorists were reluctant to use the services of the MMIP because the premium was very high.
He called on Bank Negara, as the agency in charge of insurance, to immediately review the rates and make them affordable.
AIF To Carry Over 100 Projects Over Three Years
27 August 2009, By BERNAMA
KUALA LUMPUR -- The Asian Institute of Finance Bhd (AIF) will carry out about 100 capacity building projects, within three years, involving total investments of RM200 million, Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz said Thursday.
The AIF, a joint initiative by the central bank and the Securities Commission Malaysia, is an umbrella body which will coordinate initiatives with the Securities Industry Development Corporation, Islamic Banking and Finance Institute Malaysia, Institute of Bankers Malaysia and the Malaysian Insurance Institute.
Bank Negara Malaysia has pledged an investment of RM100 million while another RM100 million will be raised from financial institutions to fund the projects.
Zeti, who is also chairman of AIF, said besides capacity building the institute would oversee the rationalisation, accreditation, certification and branding of the financial services related projects.
"AIF will work closely with these training institutions to coordinate and enhance programme design, content, instruction and delivery," the governor said at the launch of AIF here Thursday.
She said the institute would promote Malaysia's financial services human capital development programmes more holistically, both domestically and regionally, besides acting as a platform to draw on complementarities and strengths of each institution.
SC chairman Tan Sri Zarinah Anwar has been appointed vice chairman of AIF while others board members include Bursa Malaysia Chief Executive Officer Datuk Yusli Mohamed Yusoff, Amcorp Group Bhd Executive Chairman Tan Sri Azman Hashim and Bank Islam Malaysia Bhd Managing Director Datuk Zukri Samat.
Liow: Reduce price of medicine
20 August 2009, By The Star
KUALA LUMPUR: Manufacturers of anti-viral medicines will be asked to lower their prices so that they would be accessible to more people, said Health Minister Datuk Seri Liow Tiong Lai.
“We will discuss with the manufacturers to ensure that those in private practices can get the medicines at lower prices,” he said during the “Face to Face with the Health Minister - To Know About Influenza A (H1N1)” campaign here yesterday.
Currently, private clinics and hospitals charge between RM160 and RM180 for the medicines while it is available at RM80 at government hospitals.
Liow said that the ministry would also ensure that hospitals consistently check visitors’ body temperature. “The pandemic is still here and they cannot stop such a measure,” Liow said.
Influenza A(H1N1) hits record high with 569 cases
20 August 2009, By The Star
KUALA LUMPUR: Malaysia recorded its highest number of influenza A(H1N1) cases in a day with 569 infections.
There was also one death, bringing the total number of fatalities to 68.
Health Minister Datuk Seri Liow Tiong Lai said this indicated that the number of detected cases was still on the rise.
“That’s why our surveillance teams are working hard to detect areas that are persistent in local transmission so we can take measures to cut down on it,” he told reporters on Thursday after attending a campaign on prevention and treating A(H1N1).
He added there were 1,533 patients with influenza-like illness (ILI) who were admitted to 104 hospitals included four private establishments.
From this, 195 tested positive for the virus while 35 patients are in the intensive care unit.
A total of 188 people have been discharged from hospital.
Liow also said that private hospitals could not refuse treatment to patients with ILI.
He added the ministry would probe fatalities caused by late treatment of the patients at private hospitals.
Earlier, Liow said government clinics in urban areas would now be opened on weekends to treat flu patients.
He said this was to reduce congestions and long queues at public hospitals.
The move takes effect immediately and the hours would differ from state to state, he added.
“In terms of hours, it will be the same as weekdays from 8am to 8pm for selangor,” he told reporters on Thursday after the launch of a seminar of stem cell research and therapy at Ampang Hospital.
“It is up to the state directors to decide on the exact number of hours to open in their respective areas depending on the number of patients.”
He added the doctors from public hospitals will be deployed to the clinics whenever necessary to assist the staff there.
Liow added insurance companies should include cause of death due to complications as a result of contracting influenza A (H1N1) in policies for their clients, regardless of whether they were new or old policy holders.
New blue print for financial system expansion likely
6 August 2009, By The Star
KUALA LUMPUR: The 10-year financial sector master plan (FSMP), which had mapped out the key developments starting from 2000, is likely to be replaced with a new blueprint for significant expansion of the financial system.
Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz told StarBiz: “We are pleased that within nine years, more than 90% of the recommendations have been implemented.’’
More emphasis is expected to be placed on the development of a vibrant regional financial market that can support the expansion in trade and investment activities within the region.
Stretching from India to South Korea, the regional coverage includes the rising powerhouse in China which has often been “blamed’’ for flooding the Western financial markets with its vast savings.
The 10-year financial sector master plan (FSMP), which had mapped out the key developments starting from 2000, is likely to be replaced with a new blueprint for significant expansion of the financial system. Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz told StarBiz: “We are pleased that within nine years, more than 90% of the recommendations have been implemented.’’
It is deemed high time that Asia developed its own financial market, for instance, in regional bonds, to capture and retain part of these savings.
With a large population base, Asia has the potential for further expansion. Rising incomes and an early recovery from the current global financial crisis put it in a good position to capture some of these opportunities.
Following the 1997 Asian financial crisis, Malaysia has made big strides in developing its bond market which can be further expanded into the regional arena.
Under the ambitions set out under the FSMP, Malaysian banking institutions have developed their scale and size to become financial supermarkets and regional champions.
In line with the aim to build meaningful size, greater specialisation and convergence was targeted.
The gap between local and foreign banks has narrowed considerably, with many local banking groups currently offering products and services that are competitive to those offered by the locally incorporated foreign banks.
The development of electronic payment channels and usage of information technology in the Malaysian banking sector have seen many milestones reached under the FSMP.
The enhancement of credit skill building measures and development of industry-wide benchmarks also came into focus under the master plan.
Many steps including increased surveillance and supervision, ascribing ratings on banks and risk weightings on capital and loans have been put in place.
On hindsight, many of these measures proved timely especially in the aftermath of the global financial crisis which had left Malaysian banks relatively unscathed.
The mergers of stockbroking houses and merchant banks had resulted in the creation of full-fledged investment banks, many of which are now poised to take advantage of the improving capital markets.
The role of new non-traditional players in the provision of finance is also considered an upcoming force as better value propositions emerge for the ever-discerning Malaysian consumer.
Along with these new consumer trends and the shift towards an increasingly deregulated banking sector, Bank Negara has put in more structures to ensure higher consumer protection.
In the area of talent development, issues such as staff mobility and talent attraction have also received a lot of attention.
The ownership structure of Malaysian banking institutions has also undergone significant transformation with the emergence of institutional and foreign investors.
RHB Capital Bhd has Abu Dhabi Commercial Bank as a strong partner in Islamic banking while the AmBank group has teamed up with the Australia and New Zealand Banking Group for further inroads into the retail, treasury and trade finance business.
Private pension go-ahead
24 July 2009, By The Star
KUALA LUMPUR: The much talked about private pension funds will kick off by the middle of next year.
Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop, who announced this, said the new scheme would target the two million self-employed and those who were outside the current pension scheme.
He said the new pension funds could either be operated by new fund management firms to be licensed by the Securities Commission, or by existing firms.
The funds would be regulated by the Securities Commission.
“Several fund managers have already shown keen interest,” he told a press conference after delivering his keynote address at the Forum on Private Pension Industry Retirement Funds here yesterday.
Nor Mohamed said the scheme would target self-employed individuals who currently did not contribute to the Employees Provident Fund or those who wanted to contribute more than the EPF’s statutory requirements.
“We have to ensure it is well managed as it is a pension fund, a fund for individuals in their old-age,” he said.
He said the EPF had a government guarantee of 2.5% return.
“The private pension funds should be able to provide a ‘market return’ at any point of time,” Nor Mohamed said when asked on investment returns.
“The EPF has RM340bil in assets now. These private pension funds have huge potential,” he said, adding that there were currently 5.7 million active EPF members.
Nor Mohamed said the funds were part of the Government’s effort to reform the pension fund industry.
“This is crucial as Malaysia moves towards a developed and high income nation,” he said, adding that such funds would be a boost to the nation’s capital markets.
He said the SC had been tasked to prepare a report containing further details within the next six months.
“The Government at the same time will look at its own pension scheme and the Employees Provident Fund (EPF), and head a committee to coordinate all aspects of the pension reform,” he said.
In a survey by the EPF, it was found that around 90% of members have less than RM100,000 in their accounts and more than 70% would have exhausted their money within three years of withdrawing the lump sum upon retirement.
“This underlying trend reflects the sole dependence of retirees on their EPF savings as a safety net and as such, the inadequacy of sustainable levels of income after retirement,” he noted.
He said Malaysia had pension coverage via EPF, the Public Sector Pension Scheme and Lembaga Tabung Angkatan.
“However, there are gaps in the existing pension framework,” he said.
SC chairman Tan Sri Zarinah Anwar said the regulator would make capital preservation and investor protection top priorities when it came to the funds.
“We are gathering input from successful private pension funds models in other countries. We will then try and adopt the best practices to start off on the right footing,” she said.
Areca Capital Sdn Bhd chief executive officer Danny Wong said it “would take some time” to see the impact of the funds on the capital market.
“It all depends how individuals respond,” he told The Star.
MMIP Motor Insurance Available At Pos M'sia Outlets
10 July 2009, By BERNAMA
KUALA LUMPUR -- The Malaysian Motor Insurance Pool (MMIP) insurance covers will be available to the general public at Pos Malaysia outlets effective on Friday.
In a statement here, the General Insurance Association of Malaysia (PIAM) said private car and motorcycle owners would have the convenience of purchasing the MMIP's insurance covers from Pos Malaysia outlets throughout the country, including Sabah and Sarawak.
In order to immediately address accessibility problems in Sabah and Sarawak, insurance for taxis and buses would be made available in the two states from Friday.
The insurance for taxis and buses in other states would be available on July 24.
In the current scenario where the motor insurance market is experiencing a high loss, many insurers have either declined or are scaling back on underwriting risks, especially for third party insurance.
As such, an increasing number of motorists are turning to the MMIP for insurance cover.
The MMIP and Pos Malaysia have formed a strategic partnership to capitalise on the latters extensive network of 684 outlets throughout Malaysia to offer the insurance cover.
The service is an extension of the existing insurance renewal service already available at Pos Malaysia outlets. Pos Malaysia acts as an agent for eight insurance companies and three takaful operators.
In addition to insurance renewal, Pos Malaysia also offers the renewal of road tax for private vehicles on behalf of the Road Transport Department (RTD).
The MMIP was formed in 1992 to ensure that all vehicles on the road would not be without access to the minimum motor insurance cover required by law.
Bank Negara Not Backtracking On Implementing Premium Rebates
19 June 2009, By BERNAMA
KUALA LUMPUR -- Bank Negara Malaysia will not backtrack from implementing premium rebates for the direct purchase of general insurance covers from insurers as it is meant to put more money into consumers' pocket.
Thus, come July 1, individuals who purchase general insurance covers directly from insurance companies will be eligible to receive a premium rebate.
The quantum of rebate, however, will depend on the type of insurance purchased.
For motor insurance, individuals will receive a five percent premium rebate in the first year of implementation and 10 percent thereafter.
"This is something that is fair for consumers. Over time you cannot stop this kind of innovation taking place," Bank Negara's deputy governor Datuk Mohd Razif Abd Kadir said at a press conference here Friday.
According to him, there has been "pressure" to withdraw the policy from being implemented.
"But it is aimed at putting more money back into consumers' pocket, which is in line with the government's intention of enhancing consumption," he said.
As at end of 2008, the general insurance policy premium amounted to RM4.4 billion, of which half was motor insurance and 15 percent or RM450 million came from direct channel, but without getting any rebate.
"Now, individual consumers will benefit from the rebate," Mohd Razif said.
Bank Negara, he said, has engaged in various discussions with industry players with regard to the implementation of the insurance rebate.
The policy, he added, was also to enhance the ability of consumers in having a wider access to financial products and services.
In line with this, insurance companies have also increasingly introduced direct delivery channels to market their products and services which provided consumers with the options that will best suit their needs, Mohd Razif said.
Thus, the insurance companies are well prepared with the infrastructures that is needed to enable consumers to deal directly, he said.
Despite the emergence of direct distribution channels such as Internet, the 40,000 insurance agents in Malaysia will remain an important intermediary in the general insurance sector to provide personalised services for the convenience of policy owners as well as value-added services such as advice on insurance products and in providing assistance in claims handling.
Customers have the option to use the services of agents to meet their insurance requirements, particularly for complex and sophisticated products.
To facilitate agents to move up the value chain and enter this new area, the government and the insurance industry have and will continue to provide the necessary training and capacity-building opportunities, Mohd Razif said.
Initiatives by Bank Negara and the insurance sector include putting in place appropriate training programmes and requiring agency training expenses to be part of minimum training expenditure, he said.
However, there is no plan to implement such a policy for other insurance products, Mohd Razif said, adding that the idea to increase motor vehicle insurance tariff, which has seen no change since 1978, is still being studied.
White Collar Crimes Accounted For RM788 Mil Losses Last Year - IGP
17 June 2009, By BERNAMA
KUALA LUMPUR -- White collar crime steals the thunder from conventional crime as it potentially affects the financial performance of commercial organisations in the country.
As such, issues related to financial crime, fraud and corruption were a major concern to the government, said Inspector General of Police Tan Sri Musa Hassan.
He said white collar crimes or economic crime not only affected the individual victim but it also had a ripple effect on a nation's financial well-being.
"If left unchecked, white collar crimes can bring a negative bearing on the integrity of a nation's financial and business institutions and the capability of a nation's enforcement agencies to regulate and investigate cases of financial irregularities.
"Ultimately it can undermine the confidence of both local and foreign businessmen to invest in the country," he said when opening a Seminar on Forensic Accounting and Financial Criminology at the KL Tower here Tuesday.
His speech was read by Commercial Crimes Investigation Department Director Datuk Koh Hong Sun.
Musa said the current global economic upheaval which not only affected the industrialized countries but also developing nations, seeks a solution to minimise or mitigate the expected increase in white collar crimes due to the current economic condition.
"Whether blue collar or white collar, criminals go for soft targets. More often than not, criminal acts are crimes of opportunity which are provided for by the victims.
"In the case of white collar crimes, a lack of, weak and poorly monitored and implemented internal control systems, financial procedures and the non-existence of a duty due diligence in business transactions is one of the main factors contributing to the rise in such crimes," he said.
Last year saw an increase of 70.3 per cent in white collar crimes or an increase of 7,151 cases over the 2007 figure of 10,160 cases, he said.
He said in previous years, criminal breach of trust and cheating cases continued to form the bulk or 69.06 per cent of cases investigated.
"These two forms of crimes alone contributed to 83.2 per cent or RM 788,177,858.59 out of the RM 845,585,370.49 financial losses for the year 2008.
"In general, business entities are the main victims of Criminal Breach of Trust and Cheating," he said.
Bank Negara Malaysia Bill 2009 Tabled
17 June 2009, By BERNAMA
KUALA LUMPUR -- The Bank Negara Malaysia 2009 Bill was tabled for its first reading at the Dewan Rakyat Tuesday.
Deputy Finance Minister, Senator Dr Awang Adek Hussin presented the Bill which is for the continued existence of Bank Negara which is covered under the Central Bank of Malaysia Act 1958.
The Act also provides for Bank Negara's administration, objectives and powers.
Among others, the Bill will also touch on the abolishment of the Central Bank of Malaysia Act 1958 and its renaming as Bank Negara Malaysia Act 2009.
Bank Negara will continue to be the central bank for Malaysia and its primary objective will remain in ensuring a stable monetary and financial system that will be conducive for the growth of a sustainable national economy.
Bank Negara considering risk-based system for vehicle insurers
16 June 2009, By The Edge
KUALA LUMPUR : Bank Negara is studying the possibility of reviewing the “tariff-based’ insurance system for motor vehicles that had been effective since 1978 and replace it with a “risk-based” system, said Deputy Finance Minister Datuk Dr Awang Adek Hussein.
He said on June 16 the proposal was to ensure a level playing field in the motor vehicle insurance industry, it should have a more sustainable system where insurance premiums were based on risk instead of being controlled by tariffs, adding that Malaysia was one of the few countries that adopted the “tariff-based” system.
He also said while the tariff-based insurance system recorded RM4.5 billion gross premiums for motor vehicles last year, the profits by insurers following underwriting performance were minimal as Malaysia had a high loss ratio of 80.9% as compared with Thailand (60%), China (68%) and Indonesia (70%).
“This means for every RM1, some 81 sen goes to claims. This has caused many insurance players to be less able,” Awang told the Dewan Rakyat yesterday when replying a supplementary question by Chong Chieng Jen (Bandar Kuching – DAP)
Chong had wanted to know whether the central bank had taken any steps to act on insurers that compelled old motor vehicles owners to purchase personal accident policy besides the “first party” or “third party” insurance policy. He had earlier asked the Minister of Finance to state measures by BNM on insurance companies that refused to accept “third party” insurance for old vehicles.
Awang said Bank Negara would not allow insurance companies to force motor vehicle owners to purchase “third party” or comprehensive insurance protections should the owners themselves were unhappy with it.
He said some insurers rejected certain risks which include that of old vehicles which were highly risky, stressing that there were a host of claims that were experienced by insurance companies on the particular vehicle category.
“However, as motor insurance is mandatory under the Transport Act 1987, the general insurance industry has set up Malaysian Motor Insurance Pool (MIMP) to act as the end-insurer,” he added.
WHO experts to meet as pandemic alert call nears
11 June 2009, By The Star
GENEVA (Reuters) - The World Health Organisation has called an emergency meeting of experts on Thursday to discuss the spreading H1N1 flu outbreak, in a sign the U.N. agency may be poised to declare a pandemic.
WHO Director-General Margaret Chan, who consulted health officials in affected countries on Wednesday, was drawing up her own evaluation ahead of the meeting set to begin at midday (1000 GMT), a spokesman said.
"She is looking for some detailed epidemiological explanation for what is going on," WHO spokesman Dick Thompson told Reuters. "She is making her own assessment based on information gathered today and running it by the Emergency Committee tomorrow."
Thompson declined to say whether the WHO would declare a full-blown pandemic after the closed-door talks, saying he did not want to prejudge the experts' recommendations.
Chan had sought further information from some countries to clarify news reports that they were detecting sustained transmission of the new virus in the community, and not just imported cases, he said.
WHO spokesman Gregory Hartl said the expert committee would consult "on the state of the outbreak". The strain, which emerged in April in Mexico and the United States, has spread widely in places including Australia, Britain, Chile and Japan.
The agency said on Tuesday it was on the verge of declaring the first influenza pandemic in more than 40 years, but wanted to ensure countries were well prepared to prevent a panic over the disease, widely known as swine flu.
Chan, a former health director in Hong Kong, has previously consulted the group of international experts before raising the alert level.
Confirmed community spread in a second region beyond North America would trigger moving to phase 6 -- signifying a full-blown pandemic -- from the current phase 5 on the WHO's 6-level pandemic alert scale.
GEOGRAPHIC SPREAD
There have been 27,737 cases reported in 74 countries to date, including 141 deaths, according to the WHO's latest tally.
Keiji Fukuda, acting WHO assistant director-general, told reporters late on Tuesday that a move to phase 6 would reflect the geographic spread of the new disease.
"It does not mean that the severity of the situation has increased or that people are getting seriously sick at higher numbers or higher rates than they are right now," he said.
"One of the critical issues is that we do not want people to 'over-panic' if they hear that we are in a pandemic situation," Fukuda told reporters at the time.
The WHO wants to avoid causing undue alarm over a virus that has been largely mild in most countries, while warning it could still mutate into a more virulent form.
Members such as Britain have called on the WHO to revise its scale to reflect severity in future.
The WHO and its 193 member states were working hard to prepare for a pandemic, for instance developing vaccines and building up supplies of anti-viral drugs, Fukuda said.
Drug makers are on track to have a vaccine against the new strain ready for the northern hemisphere autumn after receiving seed virus samples, company officials said.
Labuan Holding Companies Can Now Be Located In KL
1 June 2009, By BERNAMA
KUALA LUMPUR -- Labuan holding companies are now allowed to establish their operational and management office in Kuala Lumpur under a guideline issued by the Labuan Offshore Financial Services Authority (LOFSA).
The guideline issued is part of the national financial liberalisation package announced by Prime Minister Datuk Seri Mohd Najib Tun Abdul Razak in April this year, LOFSA said in a statement today.
The liberalisation measures are aimed at enhancing Malaysia's financial services sector as a catalyst that will take the country to the next level of development, said LOFSA director-general Datuk Azizan Abdul Rahman.
In supporting the initiative, Companies Commission of Malaysia (SSM) chief executive officer Datuk Azmi Ariffin said the flexibility given to Labuan holding companies will be viewed as a positive development by the Labuan business community.
According to Labuan IBFC Inc Sdn Bhd chief executive officer Martin Crawford, the new development will attract international holding companies and multinationals to set up their business operations in Kuala Lumpur and leverage on its low-cost operating environment and infrastructure.
Application for approval can be made by a company currently incorporated under the Offshore Companies Act (OCA) or any person intending to incorporate a company under the OCA.
Those who need more details can visit www.lofsa.gov.my or www.labuanibfc.my.
National Automotive Policy ready by September
27 May 2009, By The Star
KUALA LUMPUR: A review of the National Automotive Policy (NAP) to improve existing guidelines, policies and incentives will be concluded by the end of the third quarter of the year.
Deputy Prime Minister Tan Sri Muhyiddin Yassin said the review would take into account the impact of the current global and regional economic situation with special focus being given to the automotive parts and component sector.
“When I was in the International Trade and Industries Ministry, I realised the importance of having clear Government policies and plans for the healthy growth and development of the industry.
“The review will provide the roadmap for the automotive industry in Malaysia,” Muhyiddin said in his speech at the 2nd Kuala Lumpur International Automotive Conference yesterday.
Muhyiddin said the NAP which was implemented in 2006 had attracted 135 projects valued at RM2.37bil up to last year.
Of that, he said, 87.7% was domestic investment with the remaining 12.3% coming from foreign investors.
He also urged the industry to invest more in green and clean technology by intensifying research and development.
Later, Transport Minister Datuk Seri Ong Tee Keat said there was a need to explore newer supply chain and inventory management systems to ensure a more efficient transport delivery system.
In his speech read out by Deputy Transport Minister Datuk Robert Lau, Ong said there were numerous options to look at for a model shift such as from road to rail.
“This is not only to cater for fuel efficiency but also to address carbon dioxide emission issues,” he said.
Ong said future transport and logistic solutions had to focus on greater fuel efficiency and utlisation and innovative technology.
As for the performance of the automotive industry, Malaysian Automotive Association president, Datuk Aishah Ahmad said global vehicle sales had dropped by 9% in 2008 and projected to drop by a further 13% in 2009.
Insurance firms shun 3rd party motor coverage
27 May 2009, By Malaysian Reserve
Insurance companies are no longer willing to provide third party motor insurance under their banner, and instead are sending customers to a high-risk insurance pool run collectively by the industry under orders from the regulators.
A recent decision by two local insurers to completely stop providing third party cover to commercial vehicles is set to see a higher volume of premium going towards the high-risk insurance pool called the Malaysian Motor Insurance Pool (MMIP), which had already seen a big jump last year.
Even before the two local insurers made the decision, the motor insurance pool had collectively underwritten total gross premiums of RM13.33 million, which is four times more than the RM3.11 million in premiums in 2007.
"That's a huge spike in the pool. It simply means that there is that much more insurance business that insurers do not want to touch.
"This also means that general insurers will have to fork out more for the pool," an industry executive told The Malaysian Reserve.
And the latest decision by the two insurers to completely shut out commercial vehicles is set to compound the situation. After the recent annual meeting of MMIP, executives believe premiums underwritten by the pool could more than double, with one source estimating that, moving forward, the pool could conduct as much as RM3 million of business in a month.
"What no insurer wants to do, all must do. Hence, since no single insurer is willing to underwrite third party motor risk, it goes to the pool which is collectively underwritten by all 33 general insurance players in the country," said the executive.
Major players in the motor insurance sector include Kurnia Insurance (M) Bhd, Allianz General Insurance Company (Malaysia) Bhd, AmG Insurance Bhd, Tokio Marine Insurans (M) Bhd, Pacific & Orient Insurance Co Bhd, Berjaya Sompo Insurance Bhd and Uni.Asia General Insurance Bhd. The high claims ratio has seen insurers steering clear from underwriting third party liability coverage, the minumum insurance cover mandated by the Road Transport Act 1987.
Besides providing insurance protection against death and injury to third parties (which is provided under the 'Act Only' motor insurance policy), third party motor insurance also provides protection against other legal liabilities such as damage to the property of a third party (usually somebody else's car or motorcycle or a neighbour's gate) and certain specified legal costs.
Under the third party cover, a policyholder may opt to include protection for loss or damage to his own vehicle due to fire or theft only. Over the years, Bank Negara Malaysia (BNM) and the Ministry of Finance have formed a pool established by insurance companies registered under the Insurance Act 1996 to provide motor insurance to vehicle owners who are unable to obtain insurance protection for their vehicles. It is also commonly referred to as the insurer of the last resort.
This pool is managed by MMIP Services Sdn Bhd (MSSB), a subsidiary of MNRB Holdings Bhd (MNRB) incorporated in 2006. Among others, MSSB handles the administration, accounts, investment of the funds of the pool as well as the claims negotiations and settlements.
More choices to buy insurance
23 May 2009, By The Star
KUALA LUMPUR: Insurance agents will remain a vital part of the general insurance industry even with the introduction of mandatory rebates for direct purchase of motor insurance, said the General Insurance Association of Malaysia (PIAM).
In a statement responding to the implementation of policy, the association said insurance agents would continue to be used as long as car owners were comfortable with and appreciative of their service.
The move, to be implemented on July 1, will see customers getting a 5% rebate in the first year and a 10% rebate for renewals when buying insurance directly.
“The concern of some agents that there will be a mass exodus of their customers to purchase directly is highly speculative and unwarranted,” said the association.
Insurance agents account for 60% of all business generated.
The association said that the move was intended to benefit consumers who wished to deal directly with companies.
“There are consumers who want more choices in terms of how they purchase insurance.
“We must also bear in mind the younger consumers who are very mobile and IT savvy,” said the association.
The association added that there were car owners who wanted to enjoy savings by going direct.
Meanwhile, the General Insurance Agents Association Malaysia (Perwakim) organised a meeting yesterday to protest the implementation of mandatory rebating.
Its president Liza Lau later told a press conference that Perwakim would start a signature drive as well as seek a dialogue with Bank Negara Malaysia and PIAM on the matter.
“We do not want this move to take place.
“It will lead to a loss of income which would in turn affect our ability to pay our staff,” she said.
Lau said many of the staff working for some 20,000 full-time agents would lose their jobs if the move were to take place.
Assumption of Control of Tahan Insurance Malaysia Berhad
22 May 2009, By Bank Negara Malaysia
Pursuant to subsection 59(4)(a) of the Insurance Act 1996, the Minister of Finance has made an order for Bank Negara Malaysia to assume control of Tahan Insurance Malaysia Berhad (Tahan). Tahan is a licensed general insurer with a market share of 1%. The primary objective of the order is to safeguard the interests of Tahan's policy owners. The order is made due to Tahan's non-compliance with capital requirements and non-fulfillment of the capital restoration plans. The order takes effect from today.
Tahan's business operations will proceed as usual during the period of assumption of control. To this effect, Bank Negara Malaysia has appointed Mr. Phoon Soon Keong, an Executive Director of PricewaterhouseCoopers Capital Sdn Bhd, as its appointee to assume control of Tahan. Mr. Phoon will oversee the whole of the property, business and affairs of Tahan to ensure smooth operations of the company's business activities in the best interest of policy owners, while assessing the least cost solution for an effective resolution to take place.
For further information, members of the public can contact:
Customer Careline
Tahan Insurance Malaysia Berhad
Telephone: 03 - 2694 8000
Operating Hours: 8.45 a.m. to 5.30 p.m., Monday to Friday
BNMTELELINK (Bank Negara Malaysia's Call Centre)
Telephone: 1-300-88-5465
Operating Hours: 9.00 a.m. to 5.00 p.m., Monday to Friday
Peda: Direct insurance rebate will wreck auto dealers network
20 May 2009, By Business Times
PROTON Dealers Association Malaysia (Peda) said the direct rebate for motor insurance will "destroy" the automotive eco-system, particularly the dealers network.
The association warned insurance companies that it will call for a boycott if the proposal is implemented.
The proposal came from the General Insurance Association of Malaysia (Piam) and was approved by Bank Negara Malaysia via a circular dated April 17.
For years, new and used car dealers have become agents to the general insurers. The latest proposal will see them being bypassed from enjoying the commission gained by providing the service to the public and financial institutions.
"Bypassing agencies with a direct rebate to customers will contribute to a higher unemployment rate and further weaken the automotive eco-system," Peda acting president Armin Baniaz Pahamin said in a statement yesterday.
He estimates that automotive dealers will lose more than 20 per cent income from the proposal.
"The proposal will destroy the automotive eco system, specifically the automotive dealer's network," Armin said.
Peda reiterates its call for the setting-up of a statutory automotive council to regulate and administer any new or revised government policy pertaining to the automotive eco-system.
"In the absence of a statutory council to represent the automotive eco system, the automotive industry will be weaker and will continue to deteriorate," he said.
Armin said motor insurance premiums generated by car dealers are in excess of RM1 million per year per agency.
These premiums subsidise the increasing overhead cost as well as determine the break-even profitability of car dealers, especially during an economic crisis, he added.
Referring to the automotive industry as "bank dominated market", Armin said without bank facilities for car vendors and dealers and hire-purchase end-financing for car buyers, the automotive industry will fail.
Banks have already enforced dealers to terminate their existing insurance company in favour of bank owned insurance company by imposing a hefty penalty and higher interest to the banking facilities rendered to the dealers if the dealer does not subscribe to the bank insurance company, he said.
Dealers were told they will not enjoy any insurance renewal commission when they subscribe to the bank insurance under force majeure.
Motor insurance agents urged to give excellent service
20 May 2009, By The Star
PETALING JAYA: Many Malaysians will continue to stick with their motor insurance agents if the services rendered are excellent, said Datuk Chor Chee Heung.
The Deputy Finance Minister was commenting on the implementation of mandatory rebates for car owners if they buy motor insurance directly from the companies via other channels such as the Internet, telemarketing, direct mailing or visiting the insurance company in person.
These customers will get a 5% rebate in the first year and a 10% rebate for renewals.
The move is to be implemented by July 1 and some insurance agents have already voiced their opposition, saying this move would affect their livelihood.
Chor, when contacted yesterday, said the new policy was being implemented to bring insurance practices in Malaysia in line with the rest of the world.
“The aim is to increase the public’s access to insurance, and also to bring the industry up to speed with various technological advancements such as the Internet,” he said.
“Remisiers have already set the precedent. Now you can go online or direct to buy stocks instead of going through them.”
Rebates for direct insurance
18 May 2009, By The Star
PETALING JAYA: Come July 1, car owners who buy motor insurance directly from insurance companies without using the services of an agent will qualify for mandatory rebates, a move that could render agents redundant.
The move would see new customers being given a 5% rebate on their insurance if they buy it via channels such as the Internet, telemarketing, direct mailing or by walking into the insurance company. These customers would also get a 10% rebate for renewals in the second year.
In a circular sent to the General Insurance Association of Malaysia (PIAM) dated April 17, Bank Negara said the rebates would only apply to actual owners of the vehicles.
The circular added that Bank Negara had “no objections” to PIAM’s proposal for the mandatory rebates. This is understood to mean that the move would more likely be implemented than not.
Veteran insurance agent Hardyal Singh hit out at PIAM, saying the association did not take the views of 40,000 agents (15,000 of them full-time) into consideration.
“It will clearly affect the livelihood of the agents. Full-time agents hire at least three to 30 employees at their agencies and these people will also be affected.
“Our main source of income is the 10% commission, so the 10% rebate is actually our commission being given to the customer. It offers no benefit to the insurance company but instead creates a socio-economic crisis by making people jobless.”
Hardyal, who was formerly Perak General Insurance Agents Association president, said he would be forming an ad hoc committee with some larger agents in Kuala Lumpur to speak out more on the matter.
It is understood that the circular was the outcome of correspondence and meetings between PIAM and Bank Negara on the association’s proposals towards self-regulation of the industry.
In the circular, the central bank said the rationale for mandatory rebates was to “promote the promulgation of alternative channels of distribution so as to increase the penetration of insurance to the masses”.
An industry source said the industry was heavily regulated, especially towards the ability of insurance companies to reward agents, and that PIAM’s proposals were for Bank Negara to allow some self-regulation.
“When Bank Negara came back to the table, it seemed that they were saying if insurance companies were willing to reward agents, then they could also provide this benefit to policyholders.”
The source added that the central bank’s move could be seen as a way to reduce the number of part-time agents but said full-time agents would now have to work harder and think up new ways to get business.
Consumer advocate Billy Toh said he was strongly against the move as he felt that agents could still play a role by explaining the insurance policy details to customers.
However, Federation of Malaysian Consumers Association secretary-general Muhammad Sha’ani Abdullah said “the move would reduce the opportunity for agents who try to get customers to buy other types of insurance together with motor insurance.”
Third-party motor cover from MMIP
16 May 2009, By The Star
PETALING JAYA: Members of the public who are unable to get third-party insurance coverage from individual insurance companies are advised to obtain coverage from the Malaysian Motor Insurance Pool (MMIP).
MMIP is a pool contributed by all insurance companies and deemed as the insurer of last resort.
Recently, there had been reports that motor vehicle owners had experienced some difficulties in obtaining third-party motor vehicle coverage.
Deputy Finance Minister Datuk Wira Chor Chee Heung met officials from the Finance Ministry, Bank Negara and representatives from Persatuan Insurans Am Malaysia (PIAM) yesterday to discuss issues regarding motor vehicle insurance, especially the issuance of third-party motor vehicle insurance.
In a statement, the ministry said that Chor subsequently instructed Bank Negara to resolve the matter together with PIAM.
Chor wants both parties to jointly come up with balanced short and long-term resolutions which would be amicable to all stakeholders, namely insurance companies, consumers and regulators.
PIAM said that insurance companies were willing to issue coverage but hefty losses due to large claims from third-party coverage had resulted in it being a non-viable business.
Singapore police recover 30 stolen M’sian luxury cars
15 May 2009, By The Star
SHAH ALAM: The Singapore police force has recovered 30 luxury cars, mostly 4WDs, worth RM2.3mil that were stolen from various parts of Malaysia since last year.
The vehicles, including models like Toyota Hilux, Honda CRV, Nissan Frontier, Toyota Fortuner and Toyota Camry, were brought into the republic individually or in bulk.
Police believe the stolen cars stolen were to be re-exported to other countries in the region, West Asia, Eastern Europe and South Africa.
Federal CID director Commissioner Datuk Seri Mohd Bakri Zinin said Friday with cooperation from the Singapore counterparts they had prevented international syndicates from exporting the cars.
Twelve of the vehicles were reported stolen in Kuala Lumpur, nine in Selangor, three in Johor, two in Negeri Sembilan and one each in Pahang, Malacca and Perak.
Comm Mohd Bakri said investigations had established that 29 vehicles were reported stolen except for one car.
He said some of the reports were genuine but there were also some car owners who knew their vehicles had been taken to neighbouring countries.
Also, while some were forced to surrender their cars after they lost in gambling sessions in a neighbouring country others sold their vehicles to the syndicate due to financial difficulties and reported them stolen when they returned to Malaysia, he told a press conference at Management Solution in TM Kompleks here Friday.
Comm Mohd Bakri said Interpol had received all the 30 vehicles from Singapore police on May 5 and they would be released to the rightful owners, such as the insurance companies and banks, after investigations were complete.
He said the syndicate members used several methods, including using false registration plates, to steal the car, adding they were very slick in their operations and had a wide network.
He said a car stolen in Kuala Lumpur could be taken out of the country within a few hours and dismantled into pieces in just an hour.
Comm Mohd Bakri added the police was also collaborating with Customs Department, Road Transport Department on car theft.
“We are looking into the possibility of imposing a passport system, which means all cars must have a passport to come into and leave Malaysia.
“Besides, we are also suggesting to the government to have e-plates or an electronic registration number system as well as a micro-dot system, a kind of electronic identification system to prevent theft of car parts,” he said.
A choice to ride on safe buses
13 May 2009, By The Star
PUTRAJAYA: Consumers can choose to travel only with express bus companies which practise strict safety measures in the future.
Malaysian Institute of Road Safety Research (Miros) director-general Prof Dr Ahmad Farhan Mohd Sadullah said it would soon release a list of bus companies which complied with the Road Safety Department’s safety, health and environment code of practice.
“The number of bus accidents has dropped by 36% last year in comparison with the previous year.
“This is due to 22 bus companies complying with the code of practice,” he told a press conference here yesterday.
With the release of the list, Dr Ahmad Farhan said consumers would be able to differentiate between bus operators that complied with safety measures with those that did not.
He added that Miros would suggest this to the Cabinet Committee on Road Safety, which is chaired by Prime Minister Datuk Seri Najib Tun Razak.
The committee is expected to meet next month.
Dr Ahmad Farhan said it would take five years for all the 187 bus companies in the country to comply with the safety requirements, which were not compulsory.
“Although some have volunteered to comply with the requirements, we can only en-sure bus companies follow such safety standards when they come to renew their permits,” he said.
Among others, the code includes “sound driver” recruitment and an effective driver and vehicle data management system.
Car parts theft ring uncovered
2 May 2009, By New Straits Times
MUAR: Car parts from seven stolen cars worth RM300,000 were seized and a man believed to be part of a "kereta potong" syndicate was arrested following a raid at Jalan Arab here on Wednesday. Johor CID chief Datuk Amer Awal said it was believed the syndicate had been cannibalising stolen Proton cars and selling the components locally.
"We are still looking for the remaining syndicate members," he said at the Muar police headquarters yesterday.
Amer also said police believed that the suspect had been operating in Muar for about six months and had links in Malacca.
He also said the syndicate was known to change its operation centre periodically to avoid detection.
In another development, Amer said police, raided foreign workers' kongsi, budget hotels, snooker and cybercafe centres and detained 109 people for various offences.
Amer said 280 foreign workers were also checked and their personal data recorded, adding police also issued 216 summonses for traffic offences.
He said 244 people, including students, found in snooker centres and cybercafes, were screened during the operations held over the past 48 hours.
On several memorandums received by the police, Amer admitted there was a shortage of manpower, but soon there would be an intake of 60,000 recruits and more policemen would be assigned to various districts.
Amer said police had intensified mobile patrols in strategic locations to check crime. He added more police beat bases had also been set up.
Car Thefts: Architect still fearful 2 years on
2 May 2009, By New Straits Times
WHEN architect Lim Take Bane opens the front door of his house in the mornings, he cannot help but feel afraid. He feels fearful because, two years ago, car thieves cut his front gate padlock and drove away with his new Toyota Fortuner 4WD.
"It was a scary moment. They didn't harm me, my wife or daughter," said Lim, 51, who lives in Bangsar Baru, Kuala Lumpur.
"The fear never goes away. When I first bought the car, people did tell me that the 4WD drive was a hot car among car thieves."
Lim had decided on the Fortuner because he needed a vehicle which could carry his drawings to work and ferry clients around.
Six months after the theft, the insurance company paid Lim 90 per cent of the total value of the vehicle.
Lim lost important documents belonging to clients and personal items and estimated their value to be about RM30,000.
"When I spoke to people in the car business after my Toyota was stolen, they told me that it was probably headed for Cambodia where the demand for such vehicles is good."
Police go hi-tech to fight car thefts
2 May 2009, By New Straits Times
Vehicle theft cases have been on the rise in recent years. Shanti Gunaratnam and Alang Bendahara talk to police and insurance experts about the problem POLICE are getting more "tech savvy" as they battle the brazen car and motorcycle thieves who did RM982 million worth of "business" in 2008.
Vehicle thefts have steadily increased from 82,954 (valued at RM853 million) in 2006 to 85,080 (valued at RM911 million) in 2007 and 88,820 last year.
Federal Criminal Investigation Department director Datuk Seri Bakri Zinin said police had identified three ways to prevent vehicle theft:
- Fixing e-plates for vehicle registration numbers;
- "DNA profiling" of vehicles and their parts; and
- Getting vehicles to use a "passport" when they leave the country.
The e-plate will be fitted with a global positioning system tracker which the police can use to track the stolen vehicle when a report is made.
"We have been asking the Road Transport Department for this for the last four years but no decision has been made yet," said Bakri.
He said the "DNA profiling" system would be like the one used for high-end watches, which include details of a watch's make, the buyer and the place of sale. This information, he added, would be contained in a colour-coded dot on vehicles.
Bakri said the "DNA profiling" would also be similar to the one which would be used in the new Malaysian passports to be issued next year.
"We have asked that this DNA dot be used for new cars but they (manufacturers and agents) are reluctant to do so because of the added cost."
The "passport" will carry pictures of the vehicle and other relevant information.
"Many Malaysian-registered vehicles are taken to neighbouring countries and do not come back.
"The vehicles could have been stolen, sold to unsuspecting buyers, given away as payment for gambling debts or just left behind because the owners were unable to make loan repayments.
"The owners return and lodge police reports that the vehicles have been 'stolen'.
"With the 'passports', we will be able to monitor vehicles exiting and entering the country."
Bakri said police knew who were the masterminds behind the car theft syndicates but it was difficult to bring them to court.
He noted that many arrests had been made but none of them could be connected to the big boys.
"We are fighting an uphill battle. Those arrested are small-time thieves."
Bakri said there was a two-way trade in the sale of stolen vehicles, with luxury cars being stolen in foreign countries and brought in as "reconditioned" cars and sold to unsuspecting Malaysian buyers.
Expensive cars from Malaysia have also found their way to neighbouring countries and as far away as the United Arab Emirates, South Africa and Trinidad and Tobago.
Syndicates are also targeting 4WD vehicles for use deep in the jungle by loggers and miners. A RM90,000 4WD is sold for as little as RM15,000. While luxury cars and 4WD vehicles bring in top ringgit, small-engine motorcycles are the "bread-and-butter" business of many syndicates.
"The motorcycles are easily stolen and cannibalised for their parts," Bakri added.
Former senior cop arrested over car thefts
2 May 2009, By New Straits Times
SHAH ALAM: A former senior police officer who was asked to resign from the force over "certain irregularities" is believed to have been the mastermind of a car theft ring that police crippled with the arrest of six men on Thursday. The officer, who held the rank of assistant superintendent, was among the six detained in a raid on a workshop at Jalan Kampung Jawa, Klang.
Besides the policeman, three brothers, a Myanmar and an Indian national were arrested.
Checks revealed that the Indian's permit had expired while the Myanmar did not have proper documents.
A search of the premises revealed three lorries that had been reported stolen in Bandar Sunway, Port Klang and Sungai Senam, Ipoh, a car that had been reported stolen in Kajang and numerous spare parts.
The men were remanded yesterday to facilitate investigations.
The ex-policeman was attached to the Subang Jaya Criminal Investigation Department when he was being investigated by the police disciplinary board.
He was then transferred to Ipoh where he was asked to resign.
State police chief Datuk Khalid Abu Bakar said police were looking for several other people to assist in investigations.
Car Thefts: RM673.4m claims incurred
2 May 2009, By New Straits Times
ACCORDING to the General Insurance Association of Malaysia (PIAM), 15,727 private cars were reported stolen to insurers in 2007 and 2008. Total claims incurred by insurers for these vehicles amounted to RM673.4 million.
Theft losses for motorcycles are an area of great concern to both insurers and the public because of the sheer number of thefts which are taking place.
In 2007, 35,749 motorcycle theft losses were reported with claims amounting to RM129.8 million.
Last year, these numbers had decreased slightly to 33,349 and RM118.8 million respectively.
In terms of absolute numbers, the following makes of cars had the highest number of thefts in 2008: Proton (3,873), Toyota (1,472) and Perodua (921).
However, the correct comparative measure of the rate of vehicle theft of a particular make or model of car would be the frequency of theft, for example, the number of vehicles stolen as a ratio of the total number of vehicles on the road.
Generally, stolen vehicles will end up in the following circumstances:
- Resold to innocent or "not-so-innocent" buyers
- Exported" out of the country for resale to foreign buyers
- Cannibalised for spare parts which are then resold in the local spare parts trade.
The insurance industry is working on the possibility of introducing a premium discount scheme for vehicles which are installed with approved electronic immobiliser and tracking systems which are connected to a centralised monitoring centre.
PIAM is also in discussion with other markets on the introduction of a vehicle security standards system.
These standards will enable the insurance industry to insure vehicles based on their security rankings, i.e. an assessment of their resistance to theft.
The standards will also enable the public to use the ranking when purchasing a vehicle and give them an indication of how their insurance premiums may be affected as a result.
In the last six years, the average annual insurance payout by the insurance industry for vehicle thefts was approximately RM550 million per year.
This is a great loss not only in terms of property value but also in terms of the unquantified consequential financial cost and emotional hardship to affected vehicle owners.
The large number of vehicle thefts including thefts with threats of violence are having a negative impact on the public's perception of safety and security in the country.
Furthermore, the spread of criminal activities associated with vehicle thefts such as organised theft syndicates, fencing of stolen property, "chop shops" and negative influence on our youths cannot be ignored.
Warning on tow truck operators' tactics
28 April 2009, By New Straits Times
KUALA LUMPUR: Tow truck operators are resorting to violence to get accident victims to use their services. Federal Territory and Selangor
Automobile Repairers' Association president Datuk Ho Yoon Ping said they had been receiving at least two complaints monthly from accident victims, alleging that they were forced to pay off the tow truck operators.
"Trouble starts when the victim refuses to go to the workshop used by these tow truck operators who arrive at the scene first.
"In most cases, the victims have their own workshops. The tow truck operators would refuse to release the victim's car until they are paid RM200 for being 'first on the scene' and 'looking after' the damaged car".
Ho said the tow truck operators would also demand money from tow service operators of the car owner's choice. He urged victims to go to the nearest police station quickly if they are caught in such a situation.
"Tell your friends or family members to get to the crash scene and keep an eye on the vehicle. Later, ask a policeman to accompany you to the car, to avoid trouble with tow service operators who would resort to anything for money."
He was speaking at a press conference at the MCA Public Services and Complaints Department yesterday where two brothers narrated their harrowing experience with the tow truck operators recently.
The brothers, Neng Man Seng, 27, and Neng Wah Seng, 29, were allegedly beaten up by 10 men after they had refused the group's offer to tow their damaged car.
Insurance Scheme For Breeders, Farmers Proposed - Noh Omar
12 April 2009, By BERNAMA
BUTTERWORTH -- The Ministry of Agriculture and Agro-based Industry hope to introduce an insurance scheme to ease the burden of breeders and farmers when they suffer loses due to natural disasters like flood or outbreak of diseases.
Its Minister Datuk Noh Omar said such an insurance scheme was important as breeders and farmers would be able to use the insured capital to restart their business after any eventualities.
He said Agro Bank, with the help of a consultant company, was carrying out a feasibility study and preparing a working paper to determine if the insurance scheme can be implemented successfully.
"I have, for a long time, proposed to the government to set up an insurance scheme to assist breeders and farmers to make up for losses suffered during any eventualities.
"I hope it can be studied further and implemented to ensure farmers and breeders remain in the business to ensure a continuous supply of such products in the market," said Noh after opening the National Agriculture Month here today, his first official function after his appointment by Prime Minister Datuk Seri Najib Tun Razak on Thursday.
He added that discussions had started with Agro Bank to start a pilot project on the proposal, for poultry farmers (Johor) and paddy planters (Kedah), and that the outcome of the discussion would be announced soon.
"What is important is that a thorough study must be carried so that the proposed scheme would not burden or incur any negative consequences to those involved.
Thieves sent to Japan for 'courses'
15 March 2009, By New Sunday Times
CAR theft syndicates are investing in their members by sending them on courses. A source revealed that some syndicate members, especially those on the ground, are sent to Japan for a three-month course to learn about alarm systems and how to disable them.
"Japan is the country of choice because it is the home to some of the biggest car makers such as Toyota and Honda."
While some master the art of disabling car alarm systems, others learn how to make duplicate keys.
"Each syndicate member learns a skill, including opening steering locks. They also specialise in a particular make of car.
"For example, one will be an expert on Toyota models while another focuses on Honda."
It is understood that each time a new Japanese car is introduced, the syndicate sends its members to Japan to learn everything about the model.
"This is because orders from foreign buyers will come in for the new model and the syndicate wants to be prepared to meet the demand."
Car theft syndicates also offer their customers, including car brokers, side packages like altering the chassis number, duplicating car keys, and forging road tax discs and registration plates.
The packages cost between RM2,000 and RM50,000, depending on the vehicle.
Stolen cars sold locally are mostly stripped for their parts.
Certain types of vehicles, including the Mercedes-Benz and BMW, have state-of-the-art systems which make them difficult to be broken into and disabled.
In such cases, the thieves will wait for the owners to get into their cars or follow them home before hijacking the vehicles.
Special unit to curb car thefts
15 March 2009, By New Sunday Times
A NATIONAL body was established in 2007 to tackle the rising number of car thefts. Known as the National Vehicle Theft Reduction Council, its members include representatives from the police, the Road Transport Department, the Transport Ministry, Malaysian Automobile Association and the General Insurance Association of Malaysia (PIAM).
It is headed by Deputy Inspector-General of Police Tan Sri Ismail Omar, while the working committee chairman is Senior Assistant Commissioner II Chee Cheng Wan.
Chee is also the Federal Criminal Investigation Department principal assistant director (intelligence/operation) and has been working with other parties.
"Currently, discussions are being held with various parties to examine the feasibility of offering discounts on insurance premiums to car owners if they install additional alarm systems," he told the New Sunday Times.
"Several workshops are also being organised with representatives from state police contingents as part of the plan to crack down on car theft syndicates."
Thieves embrace globalisation
15 March 2009, By New Sunday Times
A DECADE ago, Malaysian car theft syndicates sold stolen vehicles to local workshops, criminals and unsuspecting buyers.
Now, they are busy filling the orders of foreign buyers from as far away as Sierra Leone and South Africa.
Also involved are people who are not syndicate members, but brokers who match the suppliers to the buyers.
The process begins when a foreign buyer informs a broker in his country that he wants a specific make and model.
"Intelligence reports indicate that 4x4 pick-up trucks are in great demand abroad.
"These vehicles include the Mitsubishi Storm, Toyota Hilux and Ford Ranger," a police source told the New Sunday Times.
The source disclosed that stolen Malaysian vehicles have also "been exported" to the United Arab Emirates, Indonesia, Thailand, Pakistan, Afghanistan, China and Cambodia.
"Foreign buyers, no matter where they come from, have one thing in common.
"The vehicles they order are always the latest models with emphasis on performance and power."
Once a buyer makes an "order" with the broker, the latter will get in touch with his collaborators in Malaysia.
For example, if there is an order for a Honda Accord, the foreign broker will contact the Malaysia broker, who in turn will contact the car theft syndicate and place an order.
The syndicate usually gets between RM2,000 and RM3,000 for a vehicle.
The thieves will go out in pairs to their favourite hunting grounds such as car parks and quiet roads.
When the Honda Accord has been located, one member will disable the alarm system while his partner will break into the car.
The vehicle is transported to a pre arranged location, usually in a car park of a condominium.
The registration plate of the car is changed and a duplicate key is made before the stolen car reaches the car park.
"When the car is parked, the thieves will place the key on top of the car tyre or inside the glove compartment," the source said.
"The car broker is informed that the Honda Accord is at the pre arranged location.
"But there will be no face-to-face contact between the two parties.
"The broker will then go to the car and place an envelope inside."
The envelope will contain between RM500 and RM1,000, depending on the destination of the car.
It is the fee for the runner who will drive the car to an exit point.
When the runner has reached the exit point, for example in Port Klang, the vehicle is placed inside a container and shipped.
All this happens within hours of the car being stolen.
Gone are the days when syndicates would store the vehicles in warehouses.
Foreign buyers normally pay between US$2,700 (RM9,800) and US$60,000 for a stolen vehicle.
A Mercedes-Benz S350L which costs nearly RM1 million in Malaysia is sold for a mere RM217,000.
Non-motor segment helps industry record growth
11 March 2009, By The Star
KUCHING: The strong performance of the non-motor sector has helped the country’s general insurance industry to record a 3.2% growth in gross direct premium to RM10.5bil last year.
The medical and health, and liabilities classes grew by 16.7% and 10.5% last year as compared with 2007, said Bank Negara insurance and takaful supervision department director Yap Lai Kuen. She said the personal accident class posted a 9.2% growth during the same period.
“Even though 2008 has been challenging, the insurance industry has maintained an overall high volume of business,” she said when opening the inaugural Sarawak insurance agency seminar yesterday.
However, Yap said the life insurance’s new business annual premium equivalent registered RM7.2bil last year, down from RM7.6bil in 2007. She said this was due largely to a decline in sales of investment-linked business.
“It is worthwhile to note that ordinary life recorded a strong growth of 18.6%, thus demonstrating the industry’s ability to adapt to a changing business environment,” she added.
Yap said Bank Negara had recently issued a concept paper - “Guidelines on the introduction of new products for insurance companies and takaful operators” - in which fair treatment of consumers was highlighted.
She said the paper stressed the need for insurance companies to put in place policies and procedures to ensure that customers were fully informed through appropriate disclosures of the key features, terms and conditions and risks associated with the product. The product must also be appropriate for the target group of consumers taking into consideration their broad needs and risk appetite, and compensation arrangements for sales staff and agents must not induce an excessive bias towards high revenue-generating products that they are likely to result in unsuitable product advise or sales to customers.
Yap said insurance companies must be seen to be actively involved in combating fraudulant practices and money laundering to boost their integrity and trustworthiness.
She said insurance agents had to keep up-to-date in terms of technical competency, maintain a high standard of ethical behaviour and provide customer-orientated services.
No buyers for stolen Porsche
9 March 2009, By New Straits Times
PETALING JAYA: The RM1.42 million Porsche Cayenne Turbo S that was stolen in Shah Alam last Monday is being flogged on the black market for between RM50,000 and RM70,000 but there are no takers. Sources familiar with the case told the New Straits Times that the syndicate that stole the SUV, which is said to belong to a member of the Kelantan royal family, did not do its homework properly, hence the problem in attracting a buyer.
"Normally, there is a ready buyer to take possession of a stolen vehicle. The car may be stolen today but in a matter of hours, it can be in a different country.
"In the case of the Porsche, no one dares touch it."
The source described the stolen SUV as a "unique vehicle, easily noticeable and extremely hot at the moment".
"Buyers are rare for these types of high-end merchandise."
It is believed that the SUV is in Johor as the technical expertise to do alterations to the vehicle is only available in a neighbouring country.
"For example, there are details of the Porsche Cayenne Turbo S that have been sandblasted onto the windscreen. So where is the best place to find a replacement?"
Malaysia's northern neighbours are normally a sellers' paradise but not the right places to modify or make alterations to luxury vehicles.
Selangor Criminal Investigation Department chief Senior Assistant Commissioner II Hasnan Hassan said police believed the vehicle was still in the country.
The Porsche Cayenne Turbo S was stolen from a Puspakom service centre last Monday while it was being inspected.
Meanwhile, it is learnt that the thief who stole a Toyota Camry in SS19 Subang Jaya on Saturday made a mistake as the vehicle was a 2.0 litre rather than a 2.4 litre.
"Customers abroad prefer higher powered vehicles so the thieves will have to find a local buyer now."
The Toyota Camry was stolen from a petrol station as its owner was pumping fuel into the vehicle. It is believed the suspect was also responsible for stealing the Porsche Cayenne Turbo S.
Two months of rain in just two hours
5 March 2009, By The Star
PETALING JAYA: In just two hours on Tuesday, Kuala Lumpur saw more rain than it normally would in two months.
Not just that. The rain, which started in the afternoon, was so intense that it caused Sungai Gombak to quickly swell and overflow.
This resulted in the flood havoc in several parts of Kuala Lumpur. Vehicles in underground car parks were submerged and thousands of motorists were caught for hours in a traffic gridlock that continued past 9.30pm.
Describing the rainfall as exceptional, Department of Irrigation and Drainage director-general Datuk Ahmad Husaini Sulaiman said 75mm of rainfall was recorded within two hours.
“Normally, we receive about 30mm in a month. The rain (Tuesday) was so heavy and the intensity so great that Sungai Gombak could not cope with the buildup of water.
“Coupled with the capacity of Sungai Damansara and the drainage system in the city, the amount of water was just too much over a short period of time.
“Tuesday’s situation was serious and caused a lot of distress to many people, and we want the public to understand why it happened,” he said yesterday.
The Stormwater Management and Road Tunnel (SMART), generally seen as the answer to the city flood woes, was not “utilised” as it was designed to divert excess water from Sungai Klang.
Ahmad Husaini said SMART was not closed to traffic as the concentration of the rain was not over Sungai Klang.
However, he said, once the Batu and Jinjang flood retention ponds were completed by the middle of this year, such situations could be averted.
The ponds have an increased capacity of 4.5 million cubic metres and 2.5 million cubic metres respectively, enough to hold excess water from Sungai Gombak and Sungai Keroh.
A Meteorological Services Department officer said Tuesday’s rain was due to weak and variable winds which caused an unstable atmosphere.
“We are now towards the end of the north-east monsoon which brings about sudden changes of atmosphere. The inter-monsoon season is expected to start in April,” he said.
Thunderstorms can be expected in the afternoon over the next few days in the Klang Valley and the west coast but the rainfall was not expected to be unusual.
Chaos as flash floods hit city
4 March 2009, By New Straits Times
KUALA LUMPUR: Sungai Gombak overflowed its banks causing chaos that had not been seen in more than three decades in the heart of the city yesterday evening. Areas which were hit for the first time included the basement car park of the Putra World Trade Centre and large stretches of Jalan Ipoh where vehicles were completely submerged.
The other areas affected by the flash floods included Bulatan Dato Onn, Pudu Raya, Pantai Dalam, Bangsar, Segambut, Jalan Raja Laut, Jalan Kuching, Jalan Ipoh, Jalan Pekeliling, Jalan Kinabalu, and Jalan Duta.
A Kuala Lumpur City Hall emergency unit spokesman said water levels started rising during a two-hour downpour which began just after 4pm.
Thousands of office workers were stranded in their buildings when power supply was cut off and thousands more endured more than three-hour jams for journeys which normally took 30 minutes.
At PWTC, more than 1,000 visitors and staff were trapped in darkness after a power outage. When they made it to the basement, they were shocked to find their vehicles submerged.
City Fire and Rescue Department assistant director (operations) Azizan Ismail said they sent divers to the basement car park to look for victims, but fortunately there were none.
He said the basement car parks in surrounding buildings were also affected by flash floods.
Azizan added that the Sentul Fire and Rescue Department station which is situated just across PWTC was also hit by floods.
At Jalan Ipoh, which rarely sees flash floods, water levels were recorded at between one and two metres high, completely submerging vehicles.
To add to the city folks' woes, RapidKL's Kelana Jaya line LRT service, was also hit by a power failure which disrupted train operations for more than an hour beginning 5.58pm.
Power was restored gradually from 7.15pm and the train service resumed in stages. Normal service was restored at 7.47 this evening.
RapidKL chief executive officer Suffian Baharuddin said due to the power failure, massive passenger congestion was experienced at the LRT stations along the Kelana Jaya line. It took RapidKL several hours to clear the congestion.
Thousands caught unawares as 2m-high flash floods hit KL
4 March 2009, By The Star
KUALA LUMPUR: Thousands of motorists were stuck in massive traffic jams for more than two hours yesterday evening after a storm caused flash foods in various parts of the city.
Flood waters rose up to 2m at the junction of the Dynasty Hotel on Jalan Ipoh and in the Kampung Baru area.
Some motorists had to abandon their cars in the middle of the road when the flood waters threatened to submerge their vehicles.
Among those stuck in the jam was singer Francessca Peters, who was in a car driven by her sister Bibiana.
They were stuck at the Jalan Ipoh-Jalan Pahang junction as police had closed the road because of the flood.
“Pedestrians had to wade through muddy water,” Bibiana, 40, said.
Among the other badly-hit areas were Jalan Kolam Air, Jalan Union, Jalan Parlimen, Jalan Gombak, Bulatan Dato Onn, Segambut and Jalan Tun Razak.
Residents at Jalan Kolam Air were badly affected as flood waters rose as high as one metre. A resident, Ravi Chandran, 43, said it was not the first time the area had been flooded. The residents live beside Sungai Batu and flash floods have been occurring for years.
According to the Kuala Lumpur City Hall flood information centre, the floods began at 5pm after a downpour.
Enforcement officer Chief Insp Lamli Musa said the flood waters began to recede after the Smart Tunnel was closed to traffic to enable flood operations.
“We sent our officers to the affected areas and police were also sent out to help ease traffic congestion,” he said.
Stolen cars sent to Tonga
4 March 2009, By The Star
KUALA SELANGOR: Selangor Customs officers uncovered a network involved in smuggling out stolen vehicles to Trinidad and Tobago as well as Tonga.
They believe that these are new destinations, as previously, smuggled vehicles usually ended up in neighbouring countries.
Investigations uncovered eight Toyota vehicles in two containers at the Tanjung Pelepas port in Johor, said acting state Customs director Saadon Md Derus.
The Toyotas – four multi-purpose vehicles (MPVs), three Altis and a Camry worth RM683,000 – were declared as furniture.
“Smugglers are getting more creative. Two vehicles were placed on the container floor while another two were suspended from the container roof.
“They are smuggling four cars in one container. Previously only two vehicles would be put in the same container,” he told reporters yesterday after a dialogue session with traders on ways to curb the entry and sale of contraband cigarettes and counterfeit products.
Trinidad and Tobago is in the Caribbean and lies 11km off the northern coast of Venezuela; while Tonga is in the South Pacific, closer to New Zealand.
It is learnt the eight vehicles were stolen in Kuala Lumpur, Rawang and Petaling Jaya last week.
To confuse enforcement officers, the stolen vehicles were shipped from Port Klang to Singapore before being shipped back to Tanjung Pelepas port for delivery to Trinidad and Tobago and Tonga.
“We are investigating a freight forwarding firm,” said Saadon.
Selangor Customs will enlist the help of their counterparts in Trinidad and Tobago and Tonga to assist in investigations.
More road deaths spell ops failure
5 February 2009, By New Straits Times
KUALA LUMPUR: The police force's objective of lowering the number of road deaths during the Chinese New Year period failed miserably as 212 people died during Ops Sikap XIX, which ended on Monday. The number is 22 more than the previous year's total, recorded during Ops Sikap XVI. This is despite the fact that there were 2.5 per cent fewer accidents recorded this year (14,618) compared with last year (14,991).
Federal traffic police chief Datuk Abd Aziz Yusof attributed the increase in the number of fatalities to negligence of motorcyclists, who made up 71.6 per cent, or 152, of the total number of deaths recorded during Ops Sikap XIX.
"Motorcyclists and pillion riders registered the highest increase of fatalities in Ops Sikap XIX compared with other road users," he said at Bukit Aman yesterday.
Aziz said most of the fatal accidents recorded were not due to collisions but from motorists losing control of their vehicles.
"Fatigue from long distance travel affects road users' concentration and also their level of alertness and this can lead to accidents."
He advised motorcyclists who had far to travel to take public transport during future festive seasons.
Aziz said out of the 198 fatal accidents recorded, 115 occurred outside of the 351 areas that were covered by the force during the 15-day operation.
"This shows that road users' attitudes have yet to change. They will only abide by the law in areas where they know policemen are watching.
"It seems we have to deploy more people and cover more ground in the next Ops Sikap to get road users to change their attitude."
Hesaid municipal roads recorded the highest number of accidents (6,279), followed by federal roads (3,725), state roads (2,467), expressways (1,452) and other roads (695).
Road deaths up by 11.6% during CNY period
5 February 2009, By The Star
KUALA LUMPUR: Road deaths increased by 11.6% during the 19th Ops Sikap conducted for the Chinese New Year period from Jan 19 to Feb 2, compared with the same period last year.
The target set earlier by the Internal Security and Public Order director Datuk Hussin Ismail was to reduce the death toll by 5%.
A total of 212 deaths was recorded this year, against 190 in the same period last year. The average daily death toll recorded in the 15-day operation was 14.1, compared with 12.6 in 2008.
However, fewer accidents were recorded this year, at 14,618, compared with 14,991 last year during the 16th Ops Sikap.
Bukit Aman traffic chief Datuk Abdul Aziz Yusof said the target could not be achieved, let alone zero accidents or deaths, if road users do not change their bad attitude.
“How much longer do Malaysians need to be reminded of their own safety?
“Maybe Ops Sikap should be conducted more often to change their attitude,” he said.
Aziz said motorcyclists and pillion riders accounted for 72% of fatal accidents, with 152 deaths, an increase of 43.4% from last year.
Car drivers and passengers accounted for 29 deaths, pedestrians (14), lorry drivers/attendants (five), cyclists (four). The remaining deaths involved other vehicles.
He said on a bright note, there was no fatal accident involving buses during the operation, although traffic summonses shot up to 142,362.
Car theft gang busted with arrest of five men
22 January 2009, By New Straits Times
KUALA LUMPUR: They purchased vehicles involved in accidents from scrapyards before stealing a car of the same make. They then tampered with the stolen vehicle to match that of the one from the scrapyard.
The gang members took the vehicles for testing at Puspakom and obtained a registration card before selling the vehicles through second-hand car dealers or to individuals.
Police recently put a stop to the activities of this gang with the arrest of five men.
Cheras police chief Ahmad Amir Mohd Hashim said the gang sold the stolen cars at market price.
The suspects, aged between 30 and 43, were picked up in Kajang and Nilai on Jan 13, following a tip-off.
Police have seized 14 cars of various makes, including a Mercedes Benz, from the suspects.
Some of these cars recovered were stolen while some were from scrapyards.
Ahmad Amir said police believed the syndicate had been active in the Klang Valley for the past six months.
"We are investigating how many tampered vehicles had been sold so far.
"We are also looking for four other members of the syndicate."
Bank Negara cuts interest rate to lower borrowing costs
22 January 2017, By The Star
KUALA LUMPUR: Bank Negara cut its benchmark interest rate by a record 75 basis points yesterday and also reduced the statutory reserve requirement (SRR) in a move to lower borrowing costs.
The central bank said it had reduced the overnight policy rate (OPR) from 3.25% to 2.5% and reduced the SRR from 3.5% to 2% effective Feb 1.
“With the heightened downside risks to growth, the magnitude of the reductions in the OPR and the SRR are aimed to be pre-emptive in providing a more supportive monetary environment for the domestic economy,” it said in a statement. Other points in the statement included:
> Urgent implementation of policy measures crucial to ensure positive growth.
> Inflation continued to decelerate to 4.4% in December. Deceleration expected to continue with weaker demand and lower imported inflation.
> The Malaysian banking system remains fundamentally sound.
> Focus is to ensure access to credit to all sectors of the economy.
Meanwhile, the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) said the proposed second stimulus package must focus on the manufacturing and construction sectors to avert more retrenchments.
ACCCIM president Tan Sri William Cheng said the stimulus plan must be implemented quickly as the two sectors would be the most affected by the global financial crisis during the first-half of this year.
He also called for a reduction in prices of gas and electricity and a reduction in employers’ contribution to the Employees Provident Fund from 12% to 9%.
Vehicle sales to fall 12.4% this year
21 January 2009, By The Star
KUALA LUMPUR: The Malaysian Automotive Association (MAA) forecasts total industry volume of vehicles to fall 12.4% to 480,000 this year.
This was lower that the 548,115 units which were sold last year, the MAA said on Wednesday.
MAA president Datuk Aishah Ahmad said despite the weaker TIV sales this year, she expected it to record marginal improvement in 2010 to 490,000. She was expecting 2011 sales to rise to 505,000.
On the expectations for this year, she said the MAA was looking at lower sales because of the slower economic growth and unfavourable consumer sentiments due to job concerns.
Other factors were concerns about the inflation, fluctuation in commodity prices and foreign exchange rates.
Politician detained over a stolen lorry
16 January 2009, By The Star
IPOH: The divisional Youth head of a political party in Tanjung Malim was detained by police last Tuesday on suspicion of being in possession of a stolen lorry.
The arrest was believed to have been made after police received a missing lorry report in Sungai Buloh, Selangor, recently.
The 31-year-old man was arrested in his house in Sungkai, near Tapah, by a police team from the Tapah district police headquarters and handed over to the Petaling Jaya police headquarters.
Tapah OCPD Supt Roslan Bek Ahmad confirmed the arrest but declined to elaborate.
Controversy arises over insurance policies
14 January 2009, By New Straits Times
SEREMBAN: Was it a misleading sale by an MP's aide or insurance fraud in a claim by a beneficiary? On one side is a man who claims he was cheated of RM5,000 in benefit payments.
On the other side is the Parti Keadilan Rakyat MP's aide who accused the would-be beneficiary of trying to cheat the insurance company by signing his critically-ill friend for 18 policies.
The beneficiary, who declined to be named, said his friend had named him to benefit from a RM5,000 policy he took in July. When his friend died in August, his insurance claim was rejected.
He lodged a police report after failing to get the MP aide's help in his claim.
He is blaming PKR for his woes as it was the MP's aide who had encouraged people to sign up for the scheme.
The aide, Baharudin Ayub, said the complainant had bought 18 policies for his terminally-ill friend, naming himself among other beneficiaries.
"When the forms were submitted to the insurance company, they were immediately rejected because his friend's name was signed up for 18 policies.
"The forms were rejected in November."
Baharudin said the fund was aimed at helping to reduce the financial burden of burial costs.
"The complainant had actually tried to deceive the insurance company by signing up a terminally-ill person and naming himself as the beneficiary."
However, Baharuddin said he was negotiating with the insurance company to return the RM1,800, which the complainant paid for the policies.
General Insurance Companies To Face Challenging Year
12 January 2009, By Bernama
KUALA LUMPUR -- Malaysian general insurance companies are bracing for a rough 2009 as average motor premium continues to fall while insurers suffer from higher than expected claims ratio.
The rising motor claims ratio has resulted in insurers adopting more stringent underwriting control on motor insurance, including the application of premium loadings, said the General Insurance Association of Malaysia (PIAM).
This could impact the renewal and availability of motor insurance in 2009, said PIAM executive director Lim Chia Fook in a statement on Monday.
However, motor vehicle owners can turn to the Malaysian Motor Insurance Pool as an alternative to obtain motor insurance protection, he said.
Motor insurance comprises 44.3 percent of the overall general insurance business Malaysia, the association said.
In 2007, general insurers paid out RM3.49 billion or an average RM9.6 million a day for motor claims, out of the total gross premiums of RM4.68 billion collected that year.
The combined claims ratio amounted to 114 percent in 2007 and it deteriorated to 121 percent in the first half of 2008, according to PIAM.
"For every ringgit of motor insurance premium collected in 2007, insurers expended RM1.14 to pay claims and cost of acquiring and managing the business. This figure has deteriorated further to RM1.21 for every ringgit of premium earned in the first half of 2008", Lim said.
Malaysian general insurance companies have been suffering from high claims ratio which execeeded 100 percent in the last five years, according to the association.
The factors are largely due to increase in the frequency of vehicle thefts and road accidents as well as increasing severity of claims cost per accident, especially for third-party bodily injury claims, it said.
PIAM said that express buses and goods vehicle are major contributors to the underwriting losses in the motor insurance class and have the highest claims ratio.
In 2007, the combined claims ratio for express buses was 335 percent, followed by goods vehicles at 155 percent, it said.
The rising motor claims made by young drivers are another major concern, according to PIAM.
Industry statistics showed that the claims ratio attributed to 25 years and below drivers is about 40 percent higher than other insured age groups, it said.
RM1.2m insurance fraud charge
8 January 2009, By New Straits Times
PETALING JAYA: Three men, including one who is paralysed, were charged at the Sessions Court yesterday with cheating an insurance company of RM1.2 million. Wong Ngan Nyok, 64, a lumberjack, was charged with cheating officers of Kurnia Insurans (M) Berhad by convincing them that the details on a claim given through two legal firms, T. Rajagopalu & Co and G. Dorai & Co, were true.
The firms were representing Wong's employee, K. Achutan, 42, in an accident claim.
In the claim, Wong had said that Achutan was hit by a lorry driven by another employee, Pang Kee Chong, 63, on July 24, 2004, in Jempol, Negri Sembilan, causing him to become paralysed.
The charge stated that he dishonestly induced the insurance company into paying RM1,175,862.52 as compensation to Achutan on May 9, 2007, following a decision by the Kuala Pilah Sessions Court.
He is alleged to have committed the offence between Sept 22 and Oct 27, 2004, at the insurance company's headquarters here.
Pang and Achutan were also charged separately with abetting Wong.
All three pleaded not guilty.
Deputy public prosecutor Nur Aida Md Zainudin and Aqeeb Lizalman Nordin prosecuted while Wong and Pang were represented by counsel Suraj Singh. Achutan was represented by counsel Mohd Saufi Samsudin.
Nur Aida proposed bail of RM100,000 each in one surety, saying that the amount in the case was huge and it involved a big company.
Both lawyers pleaded for the amount to be reduced.
Judge Rozina Ayob granted RM3,000 bail each in one surety and ordered them to surrender their passports to the court. She fixed Feb 20 for mention.
Prison doesn't do car thieves any good
8 January 2009, By New Straits Times
PETALING JAYA: A recently released convict teamed up with his brother and a friend to pull off 15 luxury car thefts and robberies within a month. The 32-year-old man had just been released from prison a month ago after serving time for vehicle theft.
The jail sentence was his ninth conviction.
Petaling Jaya police chief Assistant Commissioner Arjunaidi Mohamad said losses incurred from the 15 reported cases were estimated to be RM1 million.
Besides the ex-convict, who is believed to be the mastermind, the other two men, aged 39 and 30, also have previous convictions for vehicle theft and drug abuse.
The month-long luxury vehicle theft and robbery spree came to an end on Dec 29 when a police party arrested the mastermind at a house in Subang Permai about 2am.
Two days later, the other two were arrested in Bukit Beruntung in a follow-up operation.
During the two operations, police recovered three cars -- a Toyota Camry, BMW and Toyota Vios.
All the cars had been reported stolen.
It is learnt that the stolen cars would normally be sold between RM15,000 and RM20,000 by the gang.
Also arrested during the raids were four prospective buyers, although Arjunaidi declined to elaborate.
He said the gang would normally identify potential victims at petrol stations.
They would then tail the victims back to their homes.
As the victim arrived home, the suspects would knock into their vehicle from the back.
When the victim got out to inspect the damage, the robbers would confront him, brandishing a parang.
It is learnt that the gang not only stole the vehicle, but would also ransack the victim's home and make off with valuables.
In some cases, the robbers also assaulted their victims although the injuries inflicted were not severe.
Besides the three vehicles that were recovered, police also seized several parang, curry powder, laptops and LCD screens.
Landslide cover needed
8 January 2009, By The Star
PETALING JAYA: Insurance companies and agents should inform policyholders on the importance of having a landslide cover in the wake of such recent catastrophic occurrences in the country.
Apart from this, policyholders should also be more responsible and not have a lackadaisical attitude towards such a policy to facilitate claims, according to industry players.
Allianz General Insurance Co (M) Bhd chief executive officer Ng Hang Ming said although the insurance coverage for landslides was sufficient, it was necessary for insurers and agents to keep their customers aware of the available coverage.
“In light of the occurrence of landslides in the past weeks, we recommend our customers to reconsider landslide coverage, and also coverage against other natural catastrophes.
“The best way to do this is to talk to your insurance company or agent for more information.
“It is definitely beneficial for customers to be better informed on the risks that are associated with landslides and other natural catastrophes, for example flooding after heavy rain,’’ he told StarBiz.
As an insurance provider, Ng said Allianz had responded by offering more information and training to its sales channels to ensure customers received the best possible protection.
He said its agents too were well prepared to advise customers on catastrophic risks.
General Insurance Association of Malaysia executive director C.F. Lim urged owners of hillside properties to extend their policy to include landslides, as a basic home owners insurance policy currently would not cover damage due to such event.
He said extending coverage for landslides and landslips would involve an additional 0.075% of the sum insured. For example, for a property worth RM100,000, the extra payment would be RM75.
Hong Leong Assurance chief operating officer (general division) Janice Chan said that currently, many home owners did not have an adequate coverage for landslides as they did not believe or thought it was needed, compared with the standard fire and lightning cover.
On the Government’s role in landslides, Chan said apart from financial compensation, it should also impose stricter laws pertaining to the development of hill slopes and strict enforcement of building codes.
Asked whether the premiums for landslides were expensive, Ng noted: “For a home owner, coverage against landslides is an additional cost factor, and nobody likes costs.
“But the premiums properly reflect the actual risk and this risk unfortunately is reality, as we see from the recent tragedy in Bukit Antarabangsa.
“We advise our customers to discuss with their agents the possible natural risks they are facing.”
Legal clerks on cheating charges
6 January 2009, By The Star
KUALA LUMPUR: The Sessions Court has allowed two legal firm clerks to be tried together on eight counts of cheating and three counts of attempting to cheat involving RM1.7mil.
D. Balakrishnan and R. Ramasamy, both 36, had previously pleaded not guilty to the charges.
Deputy public prosecutor Harris Ong Mohd Jeffery Ong had made the oral application before Judge Rozana Ali Yusoff. Ramasamy’s lawyer V. Ravichandran did not object.
Balakrishnan and Ramasamy were alleged to have jointly cheated People’s Insurance Co (M) Sdn Bhd into believing that all information and documents in suits by several plaintiffs against the company were true, when they were in fact not.
They had allegedly committed the offence between November 1990 and November 2001 in Medan Tunku here.
Harris Ong had also applied for a later date to be set for a re-mention as he said he needed to look at the investigation papers again.
Ravichandran added that the defence counsels had only so far received the charge sheet.
Rozana then set Feb 12 for re-mention and said she hoped the relevant documents would be prepared by then.
Luxury car theft syndicate busted
6 January 2009, By The Star
KUALA LUMPUR: A syndicate specialising in stealing luxury cars and selling them cheap has been crippled with the arrest of five of its members and 14 car brokers.
The car brokers were not only responsible for selling the stolen cars but also for faking the road tax disc for the cars that they sold.
Police believe that they have successfully solved 26 cases of car theft and robbery with the arrest of the men.
The cars are immediately disposed of for RM6,000 to RM20,000, depending on the marque. The road tax discs are sold for RM200 to RM300.
It is also learnt that three members of the syndicate, going by the name Jongos and active for the past six months, are involved in eight rape cases in Selangor.
City police chief Deputy Comm Datuk Mohammad Sabtu Osman said yesterday police had their breakthrough when two syndicate members, aged 30 and 35, were arrested on Dec 4.
And on Dec 24, three other syndicate members, aged 18 to 30, were picked up in Gombak district. One is a taxi driver and the other two jobless.
Initial investigations reveal that syndicate members would trail their intended victim from a bank to his or her house.
When the victim stopped the vehicle, the syndicate members would force the victim out and rob him or her before fleeing with the vehicle. They used parangs in all the incidents.
DCP Mohammad Sabtu added that eight of the victims were also raped. “However, no casualties were reported in all the incidents,” he said.
Following the arrests, police seized 13 luxury cars from various locations. Among the car makes are Mercedes Benz, BMW, Toyota, Volkswagen, and Honda.
When asked, DCP Mohammad Osman said two car buyers were also arrested.
Jeweller With Unarmed Security Guard Gets No Insurance
5 January 2009, By BERNAMA
PUTRAJAYA -- Companies with insurance policies for their valuable assets have to ensure that their security guards are physically armed while on duty as failure to do so will taint their chances for insurance claims, the Court of Appeal here ruled today.
Court of Appeal judge Datuk James Foong, who sat with Datuk Abdul Hamid Embong and Datuk Abdul Malik Ishak, made the unanimous ruling when dismissing an appeal by Wilayah Beauty Gems Sdn Bhd for RM750,000 in insurance for jewellery lost in a robbery at its premises in 1994.
"We are of the view that armed guard in the insurance policy must mean that the guard was physically armed at the material time or if arms were made immediately available at the material time," Foong in his oral decision.
The three judges were not in favour of the submission from V. Jeisooria, counsel for Wilayah Beauty Gems, that the security guard need not physically carry a gun as long as the gun was immediately available to him in the premises.
On Nov 27, 1994, the shop was robbed by a group of armed robbers who fled with jewellery worth RM900,000. It filed a claim for insurance against Arab Malaysian Assurance Bhd as the insurer, but the latter refused to pay.
It then filed a suit against Arab Malaysian Assurance at the Kuala Lumpur High Court in 1995 claiming that the insurance policy that it purchased covered the incident and argued that the clause on "armed guard" was unclear.
It contended that it was enough as long as the gun was at the guard's disposal and that it did not matter whether the security personnel was in possession of the gun.
Arab Malaysian Assurance, however, submitted that there was a clause in the policy stating that there must be at least one armed guard on duty during business, therefore the security guard must be physically armed at all times, which he had failed to do so.
In this case, the security guard kept a loaded gun in a room inside the shop and came back to the entrance only to monitor customers goint in and out of the shop, it said.
The claim was rejected by the High Court. Arab Malaysian Assurance was represented by counsel T.Sagadevan.
'Breaking into cars not rocket science'
23 December 2008, By New Straits Times
KUALA LUMPUR: The police have yet to uncover evidence that car thieves are getting help from the people within the industry to steal vehicles. Federal Criminal Investigation Department (CID) chief Datuk Bakri Zinin said this in a statement in response to the report "Many car thieves getting inside help", published in the New Straits Times last Saturday.
The report had implied that car distributors believed that car thieves received inside help as the jobs were often "clean" and the vehicles not damaged.
"Breaking into cars or immobilising car alarms is not rocket science.
"Car thieves are resourceful and very capable of finding their way into any car they can get," Bakri said.
The article also reported that most of the 12,427 vehicles stolen last year were luxury cars, multi-purpose and four-wheel drive vehicles.
"Police statistics show that car thieves target any make of car as long as opportunities exist for them to do so."
Bakri said the increase in car thefts was almost proportionate to the increase in registered cars in the country.
"In 2005, there were about 6.5 million registered cars in the country whereas last year, the figure had increased to 7.4 million.
"The number of cars stolen last year is only 0.17 per cent of the number of registered vehicles in the country."
He added that the CID took vehicle thefts seriously and combats the activity by gathering intelligence and monitoring areas prone to thefts.
Bakri advised vehicle owners to install appropriate anti-theft devices.
Many car thieves 'getting inside help'
20 December 2008, By New Straits Times
SEREMBAN: The number of cars stolen in Malaysia last year increased by almost 1,500 units compared with 2006. Most of the 12,427 vehicles stolen in 2007 were luxury cars, including multi-purpose vehicles and four-wheel-drives. They were stolen at night by "professionals".
What is more shocking is that car distributors believe that these car thieves probably received inside help as the jobs were often "clean" and did not involve any damage to the vehicle.
This information was the result of an internal probe by car dealers who were working to find ways to curb the increasing number of thefts.
"On average, about 30 to 35 cars are stolen daily. We believe several of these car thieves were getting inside help as they knew exactly where the alarm sensors were located and how to de-activate them.
"The thieves were also well-versed with the mechanisms of the immobilisers, while they all had generic keys to start the vehicle," said a distributor.
He said the number of car thefts had risen to alarming figures, from about 8,000 in 2002 to more than 12,000 last year. And the number is expected to rise this year.
"Luxury models, which are mostly priced above RM120,000, were stolen based on demand for their spare parts in foreign markets.
"These vehicles were stolen and their parts stripped before being shipped abroad, mostly to Africa," he said.
From the 11,101 cars reported stolen in 2006, he said only 3,365 were recovered.
He said the aim of the meeting between the car distributors was to find ways to improve security systems and put an end to these thefts.
"The problem is if these thieves are getting inside help, then we have a very serious issue. If someone is leaking our security codes and working with these syndicates, then we will hopefully be able to find some way around it," he said.
He said the dealers were recommending to car manufacturers certain measures, like relocating the car alarm sensors and the installation of additional safety features which they hope would make it more difficult for car thieves.
For now, he said the only advise they could offer car owners, especially those with luxury vehicles, was to be more vigilant and use as many extra locks as possible.
"Each car manufacturer would like to say that his vehicle has the best security features and will not advise his customers to buy a steering or handbrake lock.
"Unfortunately, no security system seems superior compared to the rest and the best alternative could be for the vehicle owner to use additional locks."
Three m-cycle theft gangs busted
21 November 2008, By New Straits Times
MARAN: Police busted three motorcycle theft gangs following the arrest of 18 youths aged between 14 and 23 in separate raids here. With the arrests, police now believe they have solved at least 30 cases in the district since early this year.
District police chief Deputy Superintendent Ahmad Johari Shahabudin said most of the suspects were secondary school students and sons of Felda settlers who carried out the thefts for side income.
The first to be nabbed on Sept 22 and Sept 23 were nine members from Geng Leh, suspected of having committed 15 thefts between February and September.
In a second swoop, Geng Azhar made up of five youths aged between 15 and 19, from Kota Gelanggi, Jerantut were arrested between Sept 27 and 29.
They were alleged to be involved in six motorcycle thefts in Bandar Jengka here since March this year.
Geng Pelam from Felda New Zealand here was the third on the police hit list.
The gang of four aged 18 and 19 are suspected of being involved in nine cases around Sri Jaya here since January this year.
"They move in two groups. The first group would scout for motorcycles to steal at shopping complexes and housing areas.
"After finding their targets and ascertaining that there were no cops around, they would contact the second team immediately," said Ahmad Johari.
He said the second team would use a master key and ride off with the motorcycles.
They would then cannibalise the motorcycle parts before selling them to close friends and divide the cash among the gang members.
It was learnt that the Azhar and Pelam gangs preferred to carry out their activities during the night, while Geng Leh struck during the day.
Police managed to recover some of the stolen motorcycles while the suspects have been released on police bail.
Call to regulate rating agencies
21 November 2008, By New Straits Times
MALAYSIA is calling for international rating agencies to be regulated to ensure they are accountable for their actions in providing analyses of companies, International Trade and Industry Minister Tan Sri Muhyiddin Yassin said after the Asia Pacific Economic Cooperation (Apec) trade ministers meeting here yesterday. Malaysia's proposal, which will be taken up at the Apec leaders meeting this week, comes amid the looming global crisis blamed largely on false pictures painted of the US credit market.
The objectivity of international rating agencies has been increasingly questioned in recent years, beginning with collapse of Internet companies at the turn of the century and their seemingly wrong analyses of the asset debt securities sold by American banks to the international markets.
Malaysia itself has not been spared by actions of these rating agencies who at times have paid more attention to issues other than those purely economic in nature in arriving at their ratings. Their ratings, however, carry a lot of weight and are often used by investors in arriving at investment decisions.
While all rating agencies claim to be independent in their ratings, their recent wrong analyses of companies and countries have attracted increasing views of the need to regulate the industry.
Muhyiddin also informed the meeting of Malaysia's experience in surviving the 1998 economic crisis, among others, saying the government has continued to impose strict regulation on and surveillance of its financial system to ensure its soundness.
The meeting also encouraged countries to put in place checks and balances in their regulatory frameworks and to make the private sector more accountable with accurate and timely disclosures.
Despite the critical global economic situation, Malaysia is also calling for countries not to resort to protectionist measures to ensure their survival as it could worsen the situation.
Muhyiddin said the meeting agreed that markets should be kept open to continue providing trade and business activities. Apec member economies are to continue pursuing liberalisation through elimination of tariffs to promote trade.
He said Malaysia was anticipating slightly lower trade figures next year of between one and two per cent as a result of the global crisis.
Muhyiddin said his ministry was constantly monitoring the situation and remained open to suggestions from the industry on how to cushion the impact of the crisis.
He said while there was no blanket move by Malaysia to protect its industries, the government would take steps to safeguard those considered critical to the economy.
Malaysia, for example, recently announced several liberalisation measures to prop up its steel industry.
There were also strong suggestions by Apec members for the failed Doha round of the World Trade Organisation trade talks be resurrected as success there could help strengthen the world economy.
Muhyiddin said the ministers pushed for the Doha Round to be revived before the end of the year.
"We believe that the seven-year Doha Round of trade talks can be concluded in the near future."
He said Malaysia would continue to contribute to advance the negotiations to ensure a balanced outcome at the Doha Round.
October vehicle sales fall 26%
21 November 2008, By The Star
PETALING JAYA: Vehicle sales tumbled 26.1% in October from the previous month as consumer sentiment was affected by uncertainties arising from the current financial crisis, according to the Malaysian Automotive Association (MAA).
It said total vehicle sales fell to 37,512 units, comprising 33,418 passenger and 4,094 commercial vehicles, from the 50,729 units in September.
October vehicle sales also fell 12.6% against the 42,915 units in the same month last year, the MAA said in a statement. From January to October, vehicle sales were at 467,425 units, up 16.5% from 401,149 in the previous corresponding period.
MAA said sales volume in November was expected to be maintained due to the year-end seasonal trend.
However, what was evident from the MAA data was that production had continued to increase despite the decline in sales. In October, production rose to 46,281 units, comprising 41,840 passenger and 4,441 commercial vehicles. This was an increase of 11,652 units from the 34,629 units in October last year.
Total January-October production rose to 449,988 units from 361,969 units in the previous corresponding period.
AmResearch analyst Hafriz Hezri said the contraction in October vehicle sales was expected due to lower consumer spending. Some automakers were said to have started to reduce production in view of the slowing economy, he said.
For the next two months, sales are likely to stay lower than the rest of the year as this is the typical trend for buyers to get new car registrations early in the year.
For next year, total industry volume (TIV) is expected to decline by 17% due to the slower economy, lower consumer spending and higher hire-purchase rate.
An auto analyst with Affin Investment said 2008 was a good year for car sales in general, compared with previous years due to more attractive model launches, coupled with a fairly stabilised market for second-hand cars and good gross domestic product growth of above 5%.
This year alone, Proton Holdings Bhd had launched the new Proton Saga and Persona at prices that were very attractive, while Perusahaan Otomobil Kedua Sdn Bhd and Toyota launched the facelifted Perodua MyVi and Toyota Vios respectively.
“It is a volume game for the automakers this year,” she said.
Additionally, she said, the higher purchase rate would not dampen sales for the non-national segment, particularly new cars.
Automakers such as Tan Chong Motor Holdings Bhd and UMW Holdings Bhd are still able to offer attractive interest rates of about 2.8% for new cars, compared with banks’ interest rates of 4% because they have their own financial arms to absorb the difference in interest rates.
Although October was seen as a “weak” month for vehicle sales for the year, she said sales could easily reach an average of 30,000 units per month for the next two months.
“We should be able to surpass the TIV target of 510,000 units to about 530,000 units.” However, things were “not going to look good” next year, she said.
“We expect vehicle sales to contract by 5% to 7% next year due to the slower economy and less disposable income,” she said, adding that there would be fewer mass model launches next year.
E-kesihatan system scrapped
19 November 2008, By New Straits Times
SHAH ALAM: The controversial e-kesihatan system has been scrapped. Transport minister Datuk Seri Ong Tee Keat said it would be replaced by a new system that would ensure an absence of a monopoly by any party.
He said e-kesihatan concessionaire, Supreme System Sdn Bhd, had been informed of the government's decision to discontinue the project.
He said the project had been referred to the Road Transport Department to be placed on the drawing board for a system that could serve public interest well.
Ong said compensation had not been finalised with the RTD looking into the legal implications of terminating the project.
He added that the issue of compensation was also out of the ministry's jurisdiction as it involved other government agencies like the Economic Planning Unit.
Supreme Systems has filed a RM103mil claim for compensation over the termination of the project.
On the reasons behind the termination, he said the government had been faced with a situation where it needed to strike the right balance.
"On one hand, we need medical certificates to ensure that the physical fitness of public transport drivers was done but we do not want to make it burdensome to the public.
"We will come out with a new fee structure and, most importantly, we insist there should not be any monopoly," he said after visiting Jalan Multimedia in i-City here yesterday.
The transport ministry has been attempting to implement the e-kesihatan system since 2005.
The system, to have started on Oct 1 last year, allowed medical check-up results of commercial vehicles drivers to be electronically transmitted from panel clinics and laboratories to the RTD.
However, it received widespread criticism from doctors, taxi and bus operators who claimed that the scheme was a money-making operation.
Impractical to hear cases in Singapore
12 November 2008, By The Star
PETALING JAYA: The hearing of compensation cases in Singapore courts for traffic accidents in Malaysia should not be encouraged for practical reasons.
General Insurance Association of Malaysia chairman Cliff Lee said the process would be difficult for claimants as any award made in Singapore would have to be filed in a Malaysian court for enforcement.
“This is not a question of whether or not it is fair. The Singapore court has the right to hear, but the enforcement of the judgment can be a problem,” he said.
Lee was commenting on recent separate rulings by two Singapore High Court judges that their courts could hear cases of compensation for Singaporean victims of traffic accidents in Malaysia.
He said the Malaysian defendant would also be inconvenienced by having to appoint a Singaporean lawyer while Malaysian witnesses would have to attend court in Singapore.
“Furthermore, the policy is paid in Malaysian ringgit but the award will be in Singaporean currency (S$1 = RM2.40). It will have a big impact on Malaysian insurers,” he said.
Lee said there was also the issue of what would happen if the Singaporean judgment was not enforceable in Malaysia.
“Malaysia is obviously the better forum,” he said.
The two Singaporean judges, Justices Tay Yong Kwang and Choo Han Teck, made clear that the law relating to negligence on the roads is “essentially the same” in both countries.
In one case, Singaporean Teo Cher Teck was injured in a car accident in Johor Baru in January last year when Malaysian Goh Suan Hee rear-ended his car. Teo had repaired the car and was also treated in Singapore.
Justice Choo had said that there was a subtle but appreciable difference between getting an award in Malaysian currency after taking the cost of living in Singapore into account and an award that is made directly in Singapore.
The other case involved a 43-year-old Singaporean woman who was killed when the tour bus she was travelling in crashed into the rear of a lorry on the North-South Expressway in June 2006.
Her husband, Ismail Sukardi, who was travelling with her together with their three children, took up a claim against the bus driver and company.
In this case, Justice Tay made the point about the different costs of living, and added that the victim had been working and living in Singapore and it was only right that her dependants sought damages “assessed according to local conditions”.
Association of Banks: No credit crunch in Malaysia
24 October 2008, By The Star
KUALA LUMPUR: The Association of Banks in Malaysia (ABM) says there is no credit crunch in the country and that the banking sector remains strong and well capitalised despite the turmoil in the global financial markets.
In a statement yesterday, ABM chairman Datuk Seri Abdul Hamidy Abdul Hafiz said: “It is business as usual and commercial banks are not putting any brakes on lending.”
According to the ABM, unlike the liquidity crunch that was seizing some of the key developed markets such as the US, Britain and Europe, Malaysia had been relatively unaffected and liquidity level in the banking system was healthy.
“As at end-August, loan-to-deposit ratio stood at 74.5% compared with the high 90% seen in 1997.
“The stable and low three-month domestic interbank rates, and relatively narrow spreads against the three-month Malaysian Government Securities yields are also indicative of the robustness of our banking system,” he said.
While the association acknowledged that the immediate outlook for the global financial markets and ensuing world economic growth prospects appeared challenging, the commercial banks operating in Malaysia were healthy and would remain resilient.
Abdul Hamidy said: “ABM is confident that the commercial banks are in the position to continue to perform their intermediation function in full support of domestic economic activities.”
According to ABM, banks in Malaysia are mainly domestic focused with more than 90% of total assets in ringgit-denominated assets, and most of their investments or assets concentrated in the Asean region.
Adding to the strength of the local banking sector is the fact that credit extension is more diversified today between business and household loans, with no heavy exposure to any single segment.
Domestically, Malaysia has a savings rate of 37% which is high by international standards.
The local financial system’s strong liquidity, backed by high domestic savings rate and Bank Negara’s mid-September external reserves of US$119bil, will thus continue to facilitate the orderly functioning of transactional and lending activities so as to spur domestic economic growth, albeit at a more moderate pace.
This meant there was ample liquidity in the system, Abdul Hamidy said.
“Bank Negara’s commitment to continue to provide liquidity, whenever needed, to financial institutions under its purview and readiness to respond with coordinated measures with other monetary authorities in the region, will ensure that demand for financing as well as financial services, arising from economic and financing activities, remains intact and unaffected.”
Insurance companies brace for global crisis
20 October 2008, By The Star
INSURANCE companies are strengthening their capabilities and adopting a prudent investment strategy to cushion the impact of the global financial turmoil.
Although the financial crisis has not hit the local insurance industry, insurers are not taking any chances in the event the crisis prolongs and begins to dent bottomline.
Allianz Malaysia Bhd (AMB), among others, is tapping on the group’s worldwide best practices to face the financial tsunami rocking credit markets.
Chief executive officer (CEO) Alexander Ankel said: “As part of an international group, AMB has access to numerous best global practices. These include underwriting, claims, investment, information technology and all other relevant operational processes, hence our risk management environment is very strong.
“This puts us in a position to master downward cycles and trends and to ensure we will continue to meet and exceed the expectations of agents, customers, distribution partners and business partners.”
According to Ankel, AMB also hopes to streamline both its general and life businesses within the next 20 months to further beef up its capabilities and competency.
This, he said, would create a more customer-centric organisation and help to convey the group’s best practice to the local market.
AMB, via subsidiary Allianz General Insurance Co (M) Bhd (AGIC), is now the country’s second largest general insurer with a market share of close to 10% after its consolidation with Commerce Assurance Bhd (CAB) last year.
Despite the challenging market environment, AGIC’s gross written premiums grew 33.2% to RM748.6mil in 2007 from RM561.9mil in 2006. Its life insurance operations, through subsidiary Allianz Life Insurance Malaysia Bhd, charted a 20.6% growth in written premiums to RM594.6mil last year.
AMB reported a group net loss of RM2.61mil last year mainly due to exceptional expenses and costs relating to the acquisition of CAB as compared with a net profit of about RM35mil in 2006.
The group currently has more than 9,000 agents (general and life), over 30 general insurance and 18 life insurance branches.
Manulife Insurance (M) Bhd president and CEO Peter Robertson said the key to cushion the impact of the credit crunch in the financial services sector was to have a good risk management system and practices.
“Our risk management practices cover three key areas: product design, investment management and asset liability management. For product design, we rigorously assess the pricing basis and the cost of any guarantees before launching products.
“Investment management pertains to the way we review credit and asset liability management is the combination of the above two practices,’’ he said.
Manulife’s new business premiums last year stood at RM71.3mil against RM50.2mil in 2006. Its net profit for the second quarter stood at RM30.5mil.
Last year, the company posted a net profit of RM85mil compared with RM50.7mil previously. Its total agency count as at September this year stood at 1,438.
Ankel said AMB has adopted a prudent investment strategy backed by well defined investment mandates, guidelines and limits in view of the current financial crisis.
The credit crunch had minimal impact on the company as its exposure in the local stock market had been reduced substantially and its foreign investment was only limited to its unit linked funds, Ankel noted.
Manulife, Robertson said, maintained very strict credit criteria for evaluating investments be it fixed income or equities. “In times like these the benefits of such conservatism comes to the fore.”
Hong Leong Assurance Bhd (HLA) group managing director and CEO Charlie E. Oropeza said the company’s investments were mainly in the local markets and did not have exposure to collateralised debt obligations and other exotic instruments.
Oropeza added HLA’s investments were well diversified and exposure to the equity market had been kept to a minimum and in sound dividend-yielding stocks.
Deposits In Banks, Financial Institutions Fully Guaranteed Until Dec 2010
16 October 2008, By BERNAMA
KUALA LUMPUR -- Cash deposits in banks and deposit-taking development financial institutions in the country will be fully guaranteed until December 2010, the Finance Ministry and Bank Negara announced.
They said all ringgit and foreign currency deposits with commercial, Islamic and investment banks and deposit-taking development financial institutions regulated by Bank Negara will be fully guaranteed by the government through Perbadanan Insurans Deposit Malaysia (PIDM) until December 2010.
The guarantee extends to all domestic and locally incorporated foreign banking institutions, they said in a statement Thursday.
They said access to Bank Negaras liquidity facility will be extended to insurance companies and takaful operators regulated and supervised by the central bank.
These measures are pre-emptive and precautionary since Malaysian financial institutions are well-capitalised with ample liquidity and depositors' confidence remained intact, they said.
They said the measures are to maintain the stability of the Malaysian financial system.
Given the soundness and strong capitalisation of the Malaysian banking institutions, it is unlikely that these guarantees will be called upon, they said.
Malaysia has a strong regulatory and supervisory framework reinforced by the financial discipline imposed by PIDM.
Its differential premium system provides strong incentives for banks to adopt sound and rigorous risk management practices including the maintenance of strong capital buffers, they said.
PIDM also has the necessary resolution powers to protect depositors, they added. Bank Negara remains vigilant to any potential emerging risks and challenges to the Malaysian financial system, the statement said.
Should there be any further destabilising consequences from external developments, the central bank, in addition to ensuring adequate liquidity in the banking system at all times, would also guarantee interbank obligations of banking institutions and facilitate efficient access to capital for banks to maintain capital adequacy at target levels well above the minimum standards, it said.
Bank Negara will also continue to ensure regulatory framework remains responsive to market conditions and maintains appropriate incentives for prudent risk management on the part of financial institutions to maintain the orderly functioning of the intermediation of the financial system and financial markets, it added.
Malaysian Financial System Can Weather Current Global Financial Turmoil
14 October 2008, By Bank Negara Malaysia
Despite the increased volatility in the global financial markets, Malaysian financial institutions remain resilient . Several years of reforms, institutional development and capacity building, continuous efforts to enhance corporate governance and risk management standards and practices have significantly strengthened the banking system. The level of non-performing loans has also improved to 2.5%. In addition, the standardised approach of the Basel II capital adequacy framework was implemented effective January 2008. There is also ample liquidity in Malaysia 's financial system to facilitate the orderly functioning of economic and financing activities. As at end-August 2008, net interbank placements with Bank Negara Malaysia by the banking system amounted to RM198.5 billion.
The banking and insurance industries are therefore operating with adequate capital and liquidity buffers that have been accumulated over several years. Malaysia 's financial institutions also have negligible exposure to both sub-prime related securities and to the affected financial institutions of other countries, with more than 90% of total assets of the banks and insurance companies in ringgit denominated assets. In addition, all foreign financial institutions in Malaysia are locally incorporated and have a high level of capital that is committed to support their domestic operations. As at end-August 2008, the risk-weighted capital ratio for these foreign financial institutions was at 12.6%.
The banking system's leverage position remains manageable and continues to record strong risk-weighted capital ratio of 13.2% as at end-August 2008, exceeding the minimum 8% capital requirement by RM42.3 billion. The insurance industry also recorded high solvency surplus of RM16.5 billion. The strong capital position combined with ample liquidity provides adequate capacity to the banking system to continue to perform its intermediation function and to meet its financial commitments as well as the demands for financing and financial services in supporting domestic economic activities. The aggregate domestic household sector continues to exhibit stable level of indebtedness and wealth where total financial assets are more than two times of total debts. Overall, corporations also continue to exhibit sound financial position and manageable leverage position with debt-to-equity ratio of 48% in the first half of 2008.
The Central Bank has a fully developed supervisory and surveillance system. It continuously monitors all financial institutions under its purview and will take appropriate action to safeguard the soundness of the financial system. The Bank stands ready to provide liquidity, whenever necessary, to financial institutions under its purview. The Bank is also closely engaging with the other monetary authorities in the region to monitor and respond with co-ordinated measures in managing the current challenging environment.
Cops bust ‘hell workshop’ in Subang
16 October 2008, By The Star
PETALING JAYA: More than 100 cars worth around RM2mil believed to have been stolen in the state were cannibalised for parts in a workshop here.
It is learnt that police discovered the “hell workshop” in Kampung Baru Subang after a man lodged a police report on Tuesday that his Kia Spectra had been stolen at about 10am.
What the thieves did not know was that the car was fitted with a tracking system that showed its exact location in real time.
Petaling Jaya CID officers tracked down the car to the workshop an hour later and were shocked to find that all that was left of the Kia Spectra was its bare chassis which was in the midst of being taken apart.
Petaling Jaya OCPD Asst Comm Arjunaidi Mohamad said the parts, including electronic components, were believed to have been mostly sold to spare part dealers.
Investigations also showed that the syndicate had been fooling unsuspecting customers by selling them stolen parts complete with “documentation”.
It is believed the workshop would buy stolen cars from the thieves at low prices.
ACP Arjunaidi said police would be looking into several other workshops in the area to check if they were working with the syndicate. Twelve 12 people, aged between 17 and 49, including two foreigners were arrested.
Students nabbed in luxury car theft ring
25 September 2008, By New Straits Times
KUALA LUMPUR: Two college students ferrying a stolen car were arrested by police recently. They led police to the arrest of a middleman in a car theft syndicate and the recovery of six luxury vehicles worth more than RM1.5 million.
They were arrested by a team led by Assistant Superintendent Bee Amba from the Federal Criminal Investigation Department's intelligence and record division on Sept 9.
Acting on a tip-off, police arrested the two students, aged 19 and 22, at a shopping complex car park in Sentul.
They were about to get into a Toyota Camry to drive it to Sunway.
The duo, who are engineering students at a private college in Sunway, led police to an apartment in Sunway a few hours after their arrest.
Police also recovered two Lexus RX300, another two Toyota Camry and a Volkswagen Golf GTi, all parked at the apartment's car park.
Federal CID director Datuk Bakri Zinin said the three men were part of a syndicate active in the Klang Valley since February this year.
He said the students were car jockeys who would share the RM500 they received from the 36-year-old middleman for the job.
The middleman is said to be an expert at forging road tax discs and serial numbers on the cars' engines and chassis.
The man also has previous records for stealing cars and had just come back from being banished to Terengganu.
He would 'process' the vehicles received from the jockeys and fit in details of cars on the road, like registration plates, chassis and engine numbers and road tax expiry dates.
He would then transport the vehicles to a neighbouring country where the cars would be sold for under RM20,000.
Bakri said the syndicate was believed to have been involved in the theft of at least 14 luxury cars in the Klang Valley.
Owners were usually robbed at home, or were stopped while driving or entering parking lots.
Intense training for bank directors
24 September 2008, By The Star
PETALING JAYA: Bank directors will soon have to undergo a rigorous training programme aimed at boosting the prudential and human capital aspects of the banking sector.
StarBiz learnt that this major effort is undertaken with high-level local and international inputs and will also help build up a future pool of qualified and independent bank directors.
Under Basel II, there is a lot of self-assessment, especially on risk management, that is to be shouldered by the board of directors. They need to further understand their responsibilities towards risk undertaken by the bank and ensure that it is adequately capitalised with the proper risk management systems in place.
“They must know how to behave in this environment,’’ said a market source.
The latest move to further educate bank directors is in line with Bank Negara’s direction to gradually move away from rule-based and more towards a principle-based type of supervision.
“The central bank knows that in the long term, it will manage more effectively through a responsible board,’’ the source said.
Supervisory functions will still be conducted but will be skewed more towards monitoring the operating environment and variables, moving forward.
This message is underscored by the timing of recent global events, especially the cascading financial crisis in the United States, where high profile bank CEOs have seen their jobs disappear almost overnight.
The overall feeling in the banking circles is that it is not just the CEOs who must take the rap but the boards of directors.
“The US is (finally) learning the meaning of contagion,’’ remarked an industry player.
“When people are pushed to make profits (they can become greedy and creative). In this respect, both the CEO and board must take the responsibility.’’
Simply put, a lot of the banks in trouble had gone into the non-credit worthy or non-bankable market. “Simple and direct words should have been used when the problems were first detected so that people could understand quickly and take pre-emptive measures,’’ he said.
Bankers’ talk has it that many of those who landed up with these worthless papers did not really know what they were buying. A lot of these so-called derivatives were marketed under big, prestigious names and said to be presented in such an impressive manner that to pose questions would imply ignorance.
“The screening and approval processes were not thorough enough,’’ he added. “Ratings are just a guide, never a security. You must know who you are financing. Some of these people were surprised when I asked them whether they knew they were actually financing some houses in the US!’’
AIA Bhd Not Impacted By The Financial Crisis In United States
17 September 2008, By BERNAMA
KUALA LUMPUR -- American International Assurance Bhd (AIA Bhd) is not impacted by the ongoing financial issues in the United States, its chief executive officer, Khor Hock Seng said Wednesday.
Hence, the company reassured all customers and policyholders that it was carrying on business as usual.
"We take pride in the fact that we are a locally incorporated insurer. More than 96 percent of our total assets are invested in Malaysia," Khor said in a statement here Wednesday.
"Insurance policies underwritten by AIA Bhd are direct obligations of our regulated business, which is subject to stringent local regulatory and capital requirements as prescribed by the Insurance Act and Regulations," he added.
He also said that AIA Bhd is well capitalised and that the company maintains separate reserves in Malaysia.This is in line with the regulations to meet obligations to policyholders.
AIA Bhd's statement comes in the wake of news that the giant American International Group Inc in the United States is reeling from billions of dollars in souring mortgage debt.
The Federal Reserve Board of the United States had on Sept 16 announced that the Federal Reserve Bank of New York would provide a two-year, $85 billion secured revolving credit facility to AIG to ensure the company met its liquidity needs.
According to Khor, given AIA Bhd's six decades of market experience, he was confident that the company would continue to meet the growing needs of all Malaysians while being the leading provider of insurance and financial services in the country.
US Government bails out AIG with US$85bil loan
17 September 2008, By The Star
WASHINGTON:For the second time this month, the US government intervened to bail out a private financial company, saying the failure of the huge insurer American International Group Inc. would further disrupt markets and threaten the already fragile economy.
The Federal Reserve said Tuesday it would provide up to US$85bil in an emergency, two-year loan to rescue AIG, which teetered on the edge of failure because of stresses caused by the collapse of the subprime mortgage market and the credit crunch that ensued.
In return, the government will get a 79.9% stake in AIG and the right to remove senior management.
The move was similar to the government's seizure on Sept 7 of mortgage giants Fannie Mae and Freddie Mac, where the Treasury Department said it was prepared to put up as much as US$100bil over time in each of the companies if needed to keep them from going broke.
Both moves were bound to raise questions about the use of taxpayer money to bail out private firms.
The Fed said it determined that a disorderly failure of AIG could hurt the already delicate financial markets and the economy.
Although little known off Wall Street, AIG does business with almost every financial institution in the world and insures US$88bil worth of assets including mortgages and corporate loans. Its failure could also "lead to substantially higher borrowing costs, reduced household wealth and materially weaker economic performance,'' the Fed said in a statement.
The decision to help AIG marked a reversal from the government's move over the weekend, when it refused to use taxpayer money to bail out Lehman Brothers Holdings Inc.
Lehman, which filed for bankruptcy protection Monday, collapsed under the weight of mounting losses related to its real estate holdings.
The White House said it backed the Fed's decision Tuesday.
"These steps are taken in the interest of promoting stability in financial markets and limiting damage to the broader economy,'' White House spokesman Tony Fratto said.
Malaysian Listed Companies Urged To Prepare Early For Implementation Of IFRS Framework
11 September 2008, By BERNAMA
KUALA LUMPUR -- Audit, tax and advisory services provider KPMG, has called on Malaysian listed companies to plan for the implementation of the International Financial Reporting Standard (IFRS)framework, before it comes into effect in 2012.
The Malaysian Accounting Standards Board (MASB), had earlier announced that Malaysia would go for full convergence with the IFRS by Jan 1, 2012.
Full convergence means that eventually a local listed company would be on par with other international companies in terms of financial statements reporting.
Thong Foo Vung, a technical partner of KPMG, said the move to converge fully with the IFRS would help investors have a better understanding of financial statements prepared by companies in Malaysia and for comparison with those worldwide.
"We encourage listed companies to start planning now. Past experience has shown that late planning or action only increases the risk of reporting failure or misstatements," he told reporters after the KPMG seminar on "MASB plans full convergence with IFRS by 2012-What it really means," here Thursday.
He said that the move is expected to bring several benefits, particularly for companies with foreign operations or those that raise funds from the international market.
Among the advantage of reporting under the IFRS is enhanced transparency and comparability as well as more complete, superior quality financial information for shareholders and supervisory authorities.
Thong also said that the need to establish the IFRS framework is imperative to ensure Malaysia is not left out of the globalisation wave, especially since more than 100 countries are converging or have converged with it.
Employers will soon have to insure their maids
5 September 2008, By The Star
PUTRAJAYA: People who hire domestic maids will soon be required to buy insurance for their helpers under a proposed amendment to the Employment Act and Workers’ Compensation Act.
Human Resources Minister Datuk Dr S. Subramaniam said maids who were earlier exempted from insurance coverage would be included to get protection from their employers as part of the planned amendments.
“Maids were earlier given exemption because we thought employers would automatically take care of their welfare, but now since it has been found to be otherwise the exemption clause would be removed,” he said.
He said amendments to both the Acts are expected to be tabled in Parliament by December after getting the go-ahead from the Cabinet.
With the amendments, which would see a reduced dependence on foreign workers, employers would be required to notify the ministry of vacancies and justify the need to employ them one month before applying for foreign workers, he said.
He said outsourcing companies would have to inform the ministry of the exact number of workers that was needed to ensure there would be no glut in the country.
There had been cases where outsourcing companies had brought in foreigners when jobs were not available, he said.
“Outsourcing companies will be regulated based on this new system,” he told reporters here yesterday after meeting Home Minister Datuk Seri Syed Hamid Albar.
The ministry had a database of unemployed and skilled Malaysian workers, he said, adding that the ministry also conducts skills training to meet local demand.
Syed Hamid said the Human Resources and Home Ministries were working hand-in-hand to reduce the number of foreign workers in the country from the current 2.2 million to 1.8 million by the year 2010 as planned under the mid-term review of the Ninth Malaysia Plan.
Govt Reissues Scrap Metal Collector's Licence
27 August 2008, By BERNAMA
KUALA LUMPUR -- The government has decided to reissue the scrap metal collector's licence on Aug 12 after a two-year freeze, the Dewan Rakyat was told Wednesday.
Home Minister Datuk Seri Syed Hamid Albar said police would approve the licence to those who meet the conditions stipulated.
He said the licence was frozen on Dec 8, 2006 when the Second-hand Dealers Act 1946 was being reviewed by the ministry and other government agencies.
"Police then were also checking the activity of licensed and unlicensed scrap metal dealers," he said when replying to Dr P. Ramasamy (DAP-Batu Kawan).
Syed Hamid said the ministry had curtail cable, metal and copper thefts from the premises of utility companies.
"After considering the plight of scrap metal dealers, the government had decided to reissue the licence," he said.
Park at your own risk
28 August 2008, By The Star
THE high cost of petrol, accompanied by the rising inflation, has led many people to opt for public transport like the KTM Komuter and LRT.
Many of them park their vehicles at the open car parks at the light rail transit and train stations and then board the train to work.
This seems to be a very viable and convenient option, but one big problem has arisen from the arrangement — vehicle thefts.
There has been an increase in car and motorcycle thefts at the light rail transit and train stations during the last few months.
Thefts of old cars and cannibalisation of the vehicles for spare parts are occurring at an alarming rate at a few LRT stations and the people have been warned to be cautious when parking in these areas.
Since January, five cars have been reported stolen from the public car park at the Ampang LRT station. There were reports of attempts to steal motorcycles too.
The passenger volume on the LRT has increased with the rising cost of living, prompting more commuters to leave their vehicles at public car parks for the daily commute.
This translates to limited parking spaces for the LRT workers who are forced to park in desolate areas.
RapidKL worker Ab Razak Mahmud’s 25-year-old Datsun 120Y was stolen in February.
“I have been parking in the car park since 1996 and only had a third-party insurance coverage. Now I am saddled with a new car loan,” he said.
Mohd Faez Md Zain’s Toyota LE 1985 model was stolen in January.
The latest car theft there occurred on Aug 5.
Khalil Mohd Piei was fortunate that his nine-year-old Proton Putra was recovered by the police after it was stolen from the car park in June. But the repairs cost him RM6,000.
Meanwhile, an attempt was made to steal Zaid Talib’s new motorcycle.
“When I got to my bike after work, I realised the keyhole had been tampered with and the handle had been kicked to dislodge the lock,” he said.
Rosli Arshad’s car sustained damage when the side window was smashed by thieves to retrieve a bag filled with sporting goods.
“Unfortunately, the heavy downpour caused water to seep in and damage the seats. I didn’t lose my valuables but the repair bill was high,” he said.
According to a newspaper vendor in the area who only identified herself as Fathima, she had spotted a few suspicious-looking individuals lurking near the vehicles.
“They usually disappear when I start to observe them but I am only here a few hours daily. They might be studying my routine too,” she said.
The LRT workers and the public are lamenting the serious lack of security in the car park.
Suggestions have been made to convert an abandoned warehouse in the area to a multi-level car park but unresolved ownership issues are throwing a damper on the proposal.
Ampang OCPD ACP Abdul Jalil Hassan told StarMetro that in the first two weeks of this month, two cars and six motorcycles were reported stolen.
“I advise motorists and motorcyclists not to park in back lanes and areas far from public view because vehicle thefts are on the rise. If there is no choice, invest in steering locks and central locking systems,” he said.
Jalil said the police department was beefing up its patrol unit with eight motorcycles for easy access into narrow paths and back lanes.
Sentul OCPD ACP Zakaria Pagan said most car thefts occurred at the Wangsa Maju LRT station.
“From January to August, we have had 17 cases at the station and most occurred between 6am and noon,” he said.
Zakaria said the police had taken note of the trend by increasing patrols during the hours.
“We also have to look at whether the parking lots were guarded and I sincerely ask that car owners increase the safety measures in their vehicles,” Zakaria said.
According to a parking attendant at the Sentul Timur LRT station, there were hardly any case of car thefts for the past one year, except for one incident during the March 8 general election.
“I’ve been working here for about a year and I always keep an eye out for suspicious characters lingering near the cars,” Hamidah Sapii said.
She said the theft occurred when she was busy handling customers on another side of the parking lot.
“These people were very daring to commit the crime at 9am when I had my back turned for a few minutes,” she said.
Hamidah said she knew the owners of the vehicles and that it made it easier to identify strangers at the parking lots.
“I have all the emergency numbers needed should anything happen while I’m on watch,” she said.
For those who park their cars around the area, their concerns are also about cars being broken into.
“My cousin’s car was broken into two months ago at the Sentul LRT. We pay RM3 for the parking space.
“What’s the point of paying if you can’t leave with peace of mind,” Devan Nair, 25, said.
Till press time, RapidKL had yet to comment on the incidents.
Flash flood havoc in city
28 August 2008, By New Straits Times
KUALA LUMPUR: A downpour lasting more than three hours yesterday caused traffic chaos and brought many parts of the city to a standstill. Major roads in the city centre, including Jalan Mahameru, Jalan Bangsar, Jalan Tun Perak, Jalan Cheras, Jalan Sg Besi, Jalan Ampang and Jalan Kuching, were badly affected.
Massive traffic jams were also reported along the Federal Highway, KL-Seremban highway, Jalan Raja Chulan, Jalan Tun Perak and Puduraya.
A City Hall flood operations room spokesman said the water levels at Sungai Klang and Sungai Gombak rose about two metres within an hour after the rain.
"We started receiving distress calls at 3pm from the public about flash floods and rushed our response teams to the affected areas."
A spokesman from the city traffic police control room said traffic police were deployed to the affected areas to control the situation.
A spokesman from the Jalan Hang Tuah Fire and Rescue Department, meanwhile, said the department's personnel were despatched to pump out floodwaters.
Checks at Jalan Pahang and its surrounding areas found scores of bus commuters and vehicles stranded along Jalan Tun Razak, especially near the Pekeliling bus station.
Muhammad Jamal Abdullah, 35, one of the affected commuters, said massive traffic jams particularly after heavy rain were increasingly becoming a norm.
"I have been stuck here for an hour and all vehicles are moving very slowly.
"I think the authorities should look into this matter seriously. This is not the first time."
MAA Expects Motor Vehicles Sales From July To December 2008 To Drop By 16.5 Pct
30 July 2008, By BERNAMA
PETALING JAYA -- The Malaysian Automotive Association (MAA),expects the total industry volume (TIV), of new vehicles sold in the country to drop by 16.5 percent or 45,874 units for the second half of 2008.
Its president, Datuk Aishah Ahmad said a major portion of the decrease would be from a 28 percent decline in the sale of commercial vehicles followed by the 0.5 percent drop in passenger cars.
She said among the factors considered in the forecast was the impact of higher oil prices, inflation and material costs, the hike in hire purchase interest rates especially for non-national brands and the fall in liquidity due to a bearish stock market.
Meanwhile, for the first six months of 2008, the TIV of new motor vehicles sold jumped 25.9 percent to 277,973 units from 220,739 for the corresponding period of 2007.
Aishah, speaking at a press conference here today, said passenger vehicle sales amounted to 254,252 units in the first six months the year and accounted for a 91.5 percent share of the TIV.
This share is marginally higher than the 91 percent achieved for the same period in 2007 when the sales volume of 220,739 units was registered.
A total of 23,721 units of commercial vehicles were sold in the first six months this year, accounting for a 8.5 percent share of the TIV.
"The share was marginally lower than the nine percent achieved in the same period for 2007 with a sales volume of 20,287 units," she said.
The total production volume for the first half of 2008 rose 26.7 percent to 263,222 units.This compared to 207,826 units for the same period last year.
The production of passenger vehicles in the first half of 2008 increased by 27.1 percent to 240,572 units compared to 189,336 units previously.
The production of commercial vehicles for the first half the year also grew by 22.5 percent to 22,650 units when compared to 18,490 previously.
Asked about the MAA's hopes for the upcoming Budget 2009, Aishah said:"Maybe in terms of hybrid vehicles, the government should consider some incentives in the excise and import duty."
Petrol, Diesel Prices Push Up CPI To 7.7 Percent
23 July 2008, By BERNAMA
KUALA LUMPUR -- Sharp rise in petrol and diesel prices have pushed up the consumer price index (CPI) to 7.7 per cent in June from 1.4 per cent in the same month last year.
The CPI was also higher by 3.9 per cent as compared to May, the Statistics Department said in statement Wednesday.
The index for food and non-alcoholic beverages for June compared with the same month last month showed a higher percentage change of 10 per cent while the index for non-food surged by 6.7 per cent.
The month of June also saw increases in all the main group except in housing, water, electricity, gas and other fuels which declined by 0.4 per cent, while communication remained unchanged at 96.8.
The 3.9 per cent increase in June is the result of notable rise in the index for transport at 18.8 per cent due to substantial jump in the index to 135.9 in June from 114.4 in May, the departmentm said.
The two per cent increase in the index for food and non-alcoholic beverages in June compared with that of the previous month is the result of increase in the index for food at home ( 2.1 per cent), food away from home ( 1.9 per cent) and coffee, tea, cocoa and non-alcoholic beverages ( 0.5 per cent).
Among food items which recorded notable increase in the June index compared with the previous month were tomatoes ( 19.3 per cent), chicken eggs ( 8.9 per cent), rice ( 8.4 per cent), glutinous rice ( 7.9 per cent), imported beef ( 7.3 per cent), meehoon ( 6.2 per cent), dried mee ( 5 per cent), water melon ( 4.9 per cent), carrots ( 4.8 per cent), chicken ( 4.4 per cent) and wheat flour ( 4.2 per cent).
The index of some food items declined in June than the previous month.
Among them are long cabbages (-9.6 per cent), choy sum (-8.5 per cent), ladies fingers (-5 per cent), french beans (-3.6 per cent), brinjals (-3 per cent), long beans (-2.4 per cent) and red grapes (-2 per cent).
A reclassification of items according to their durability and services rendered showed increases in the index for non-durable goods ( 8.4 per cent), services ( 0.6 per cent), durable goods ( 0.4 per cent) and semi-durable goods ( 0.2 percent).
The CPI for the first six months also increased by 3.7 per cent to 109 compared with that of 105.1 (two per cent) in the same period in 2007, it said.
The January-June period showed increases in the index for food and non-alcoholic of 6.1 per cent and non-food 2.6 per cent, it added.
Free Rear Seat Belts Installation For 431,000 Perodua Cars
22 July 2008, By BERNAMA
PUTRAJAYA Owners of 431,262 Perodua cars which are without rear seat belts will get to install the safety belts for free from next year.
Transport Minister Datuk Ong Tee Keat said the local car maker had allocated a total of RM41.8 million to supply and install the rear seat belts for its Kancil, Kenari, Kelisa, Kembara and Rusa models.
Speaking to reporters here, he said, for security reason however, the installation could only be made at Perodua service centres nationwide.
Earlier Ong witnessed the signing of memorandum of understanding between Road Safety Department and Perodua to implement community-based automative safety programme.
The department was represented by its director, Datuk Suret Singh while Perodua, by its managing director Datuk Syed Abdull Hafiz Syed Abu Bakar.
The government had made it compulsory for rear passengers to wear the seat belts starting Jan 1 next year but cars registered before 1995, which are without the safety feature, were given a three-year grace period from June 1 this year to install the belts.
Ong said last month that apart from Perodua, several other car manufacturers would provide free installation of the seat belts.
Meanwhile, Ong said members of the public were becoming more aware of the benefit of wearing the rear seat belt, from one per cent previously to 17 per cent at the moment.
"Of course we still have a long way to go and this is just an average figure. In some small towns and suburbs, the percentage is even lower. But there has been a steady improvement," he said.
KL Govt urged to reduce taxes on hybrid cars
22 July 2008, By Business Times
TAXES on hybrid cars should be reduced markedly to drive the use of such fuel-saving and environment-friendly vehicles amid soaring fuel costs, industry executives.
They said the government could promote hybrid cars by encouraging the use of these vehicles within its own agencies and institutions.
"There's no reason why the government cannot reduce the tax to be on par with conventional vehicles if the usage of hybrid cars brings benefit in terms of fuel saving and environmental protection," Proton Edar Dealers' Association president Wan Ahmad Sepwan Wan Abdul Rahman told Business Times.
Government officials reportedly said that hybrid cars are now slapped with a 260 per cent import tax. This is in comparison to zero import duty for Asean-made vehicles and 30 per cent from non-Asean countries.
Additionally, there are local excise duties of 60-105 per cent for Asean and non-Asean cars, plus 10 per cent sales tax.
International Trade and Industry Minister Tan Sri Muhyiddin Yassin said recently the duty structure for hybrid cars may be revised to attract global players to invest here.
Wan Ahmad Sepwan said local car companies such as Proton and Perodua may not be ready to produce hybrid cars for now.
"This technology is still expensive and it may not be feasible for Proton to develop hybrid cars, especially with such a low volume or production.
"The best way is for Proton to tie up with a technical partner to introduce such technology in double quick time," he said.
Luxury car theft syndicate smashed
22 July 2008, By New Straits Times
KUALA LUMPUR: Police crippled a car theft syndicate specialising in luxury cars with the arrest of a 34-year-old man in Taman Usahawan, Kepong, last Sunday. Police also recovered five cars worth more than RM900,000.
Sentul police chief Assistant Commissioner Ahmad Sofian Md Yasin said the suspect had led police to the place where the cars were hidden.
The cars were stolen in the Klang Valley and Johor Baru.
Police also raided the suspect's condominium unit where they seized two axes, three parang, computers used to make counterfeit road tax discs, 15 fake registration plate numbers, 10 condominium access cards and 40 car keys.
He said police had been monitoring the suspect for a week before they moved in on him.
Ahmad said police were looking for other gang members, which included a married couple.
Meanwhile, police are looking for Lim Kwan Hoong, IC-840424-07-5033 from Penang, Lim Kin Ling, IC-760516-05-5731 and Teow Kai Hui, IC-A1749357 to help in investigations.
They had lived in the condominium unit for a year.
He said the syndicate targeted cars in housing areas and shopping centres. Stolen cars would be stripped bare and the cannibalised parts sold.
In Putrajaya, the Anti-Corruption Agency said the other luxury car syndicate busted last week not only forged the signature of a senior government officer but also produced fake letter heads and rubber stamps bearing names of several VIPs.
ACA deputy director-general Datuk Abu Kassim Mohamed said the syndicate had forged the signature of Customs director-general Datuk Seri Abdul Rahman Abdul Hamid and used a rubber stamp bearing the name of Second Finance Minister Tan Sri Nor Mohamed Yakcop.
The rubber stamp was seized when ACA officers raided the premises of two Datuks, believed to be behind the syndicate, on July 19.
Both were believed to be responsible for using fake documents to import luxury cars through the Customs' checkpoint in Port Klang without having to pay import duty.
Abu Kassim said the two, aged 35 and 45, had been arrested to help in investigations.
Also seized were 13 luxury cars with unpaid tax of RM3 million, a card-printing machine and stacks of documents purportedly issued by the Customs Department.
The ACA and Customs Department signed a memorandum of understanding three weeks ago under which the ACA would assist the department to rectify weaknesses in its procedures so as to reduce the possibility of corruption.
Lorry smashes into 13 vehicles
1 July 2008, By New Straits Times
SUBANG JAYA: The driver of a lorry left a trail of destruction when he lost control of the lorry which smashed into 13 vehicles. The driver of one of the cars involved in the accident near Puchong IOI Mall was killed on the spot while four had been admitted to hospital with serious injuries.
Two others -- the lorry driver and a policeman in one of the cars -- were slightly injured.
The 14 vehicles damaged in the accident comprised seven cars, two lorries and five motorcycles.
The lorry driver is believed to have beaten a red light and failed to realise that there was a traffic island in front, causing him to lose control as he swerved to avoid it.
The lorry then smashed into an oncoming Nissan car driven by Myanmar national, Nyu Kyaw Lin, 58. The car was crushed to a pulp as it went under the lorry, killing Nyu instantly.
The lorry then crashed into the other vehicles as it spun out of control.
A police spokesman said Fire and Rescue personnel took 30 minutes to extricate Nyu's body from the wreckage.
The lorry driver was driving from Bandar Kinrara towards Bandar Puchong Jaya. The 1.40pm accident caused traffic around the area to come to a standstill for almost two hours.
A police spokesman said the four injured victims were from two of the cars and two motorcyclists.
They are warded at the Serdang Hospital and at press time, were reported to be in critical condition.
Myanmar killed as trailer hits vehicles and motorcycles
1 July 2008, By The Star
PETALING JAYA: A trailer, believed to have gone out of control, smashed into 13 vehicles at a junction here, killing a 64-year-old man and seriously injuring four others.
In the 1.45pm incident yesterday, the trailer heading for Puchong Jaya from Kinrara was said to have lost control and rammed into a traffic light before ploughing into seven cars, a lorry and five motorcycles from the opposite direction.
The accident caused cars and motorcycles to be dragged almost 50m.
A Myanmar national, U Kwan Lin, 64, was killed when the car he was driving was pinned under the trailer.
Kwan Lin died at the scene. The four who were seriously injured were all motorcyclists.
A survivor, who only wanted to be known as Yap, 27, said he heard a loud crash and felt a strong impact, before his car was flung forward.
“There were about 20 vehicles waiting at the traffic light when we were hit by the trailer,” he said.
Police were forced to close the roads leading to the junction, which caused a three-hour traffic jam.
A police spokesman said it took fire department personnel 30 minutes to extricate the body from the wreckage.
“Initial investigations show that the trailer was speeding and lost control before reaching the junction,” he said.
He said the trailer’s driver, who was not injured in the accident, has been detained to assist in investigations.
He added that the injured, including a policeman, were taken to the Putrajaya and Serdang hospitals.
Towing charges up by 50%
1 July 2008, By The Star
IPOH: Towing charges are up by between 25% and 50%, depending on location, with immediate effect.
Federation of Automobile Workshop Owners Association of Malaysia president Cho Chee Seng, citing rising costs, said the recommended fees within city limits (or for the first 20km) were RM100 for daytime towing and RM150 for night towing.
For towing on the highway, charges would be RM150 for the first 20km during the day, and RM200 at night.
For every additional kilometre, the charge would be RM1 (day) and RM2 (night).
Previously, tow truck drivers charged RM80 for daytime towing and RM110 for night towing within city limits, and RM100 and RM150, respectively, for towing on the highway.
“The last time we revised our charges was 10 years ago,” Cho said, noting that the fees did not include toll charges and additional equipment needed to recover vehicles such as cranes.
Cho said the federation’s members would also increase their labour charges from today, to RM45 per hour from RM25 before.
No Action If Rear Passengers Exceed Number Of Seat Belts In Vehicle
17 June 2008, By BERNAMA
PUTRAJAYA -- No enforcement action will be taken if the number of back passengers in a car exceed the number of rear seat belts available for safety wear.
Transport Minister Datuk Ong Tee Keat said this was because each vehicle only had three rear seat belts installed as required by the government.
"We are aware of such cases involving families with more than three children each and it's the only car they can afford to have. We understand this.
"We will not take action if the fourth rear passenger is not wearing a seat belt. But our position in this matter should not encourage people to overload their vehicles," he said.
Ong was speaking to reporters after witnessing the signing of a memorandum of understanding (MoU) between the Road Safety Department (JKJR) and Perusahaan Otomobil Nasional Sdn Bhd (Proton) for a community-based programme for automotive safety.
The MoU was signed by JKJR director-general Datuk Suret Singh and Proton managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir.
The authorities will issue summonses on rear passengers not wearing seat belts beginning Jan 1, 2009 as part of efforts to reduce road accident facilities involving vehicle passengers.
Ong said the move by Proton to install for free, seat belts for 227,000 Proton-make cars -- Saga, Iswara and Gen2 -- which had not been equipped with the safety divide, showed the company's commitment to promoting road safety.
"It's a new chapter in creating a road safety culture in the country by corporate citizens," he added.
Yesterday, Ong said that about 479,000 passenger vehicles, mostly registered before 1995, would get free installation of rear seat belts beginning early next year until 2020 under a sponsorship programme initiated by the government.
Meanwhile, Syed Zainal said efforts were underway to ensure the availability of parts and readiness of the service centres prior to the commencement of the exercise in January next year.
"As this involves the safety of its customers and road users in general, Proton feels it is important that this exercise is not delayed."
He said a total of 384 Proton Edar service centres, EON and sales representatives nationwide would be involved in the exercise.
16% rise in deaths on KL roads
28 May 2008, By The Star
KUALA LUMPUR: The city saw 78 road users killed in 77 accidents in the first four months of this year, a 16.4% rise over that in the corresponding period last year. Motorcyclists accounted for 51 deaths, or 65% of the total.
City traffic police chief Asst Comm Abdul Wahab Abdul Rahman said most of the road deaths were the result of serious head injuries.
He attributed the higher fatalities to the negative, reckless attitude of motorcyclists, and their love of speed.
“Motorcyclists love to ride dangerously and to speed through red lights (at road junctions). They have no regard for the safety of other road users,” he said after launching a road safety campaign together with Pos Malaysia and the Kuala Lumpur traffic police on Tuesday.
Stricter enforcement was needed to solve the problem, he added.
Last year, 239 deaths were reported in the city, 6.6% lower than in 2006, in which 255 deaths were recorded.
Pos Malaysia state manager Aziz Sulong said half of the 152 accidents involving its staff were motorcyclist postmen. There were 10 fatalities in those accidents.
Klang Valley Shaken Up By Tremors
20 May 2008, By BERNAMA
KUALA LUMPUR -- Several areas in the Klang Valley were shaken up by tremors following an earthquake off North Sumatra at 10.26pm Monday night.
The Malaysian Meteorological Department said the earthquake measuring 6.1 on the Richter scale did not pose a tsunami threat.
Meteorological Department director-general Dr Yap Kok Seng said the earthquake off the west coast of Sumatra did not affect Malaysia as it was just a mild one.
"However, the effects of the quake were felt in the capital as it is not far from us," he added.
Zainal Abidin Razali who stays at the Cendana Apartments in Bandar Sri Permaisuri said the tremors caused panic and all the residents rushed out to safety.
He said he felt the tremors as he was staying on level 15. "I felt the apartment shaking as with the ceiling fan which was moving very fast," he told Bernama.
In Bukit Antarabangsa , Mohd Fisol Jaafar who stays on level 5 of the building said he felt the tremors for 16 seconds.
"At first I thought the shaking was because my son was kicking the sofa but I later realised it was a tremors," he added.
Mohd Fisol said he knew about the tremors after listening to a report from the United States Meteorological Department.
Meanwhile, a spokesman for the Kuala Lumpur Fire and Rescue Department said reports of the tremors were received from residents in Sri Hartamas, Cheras and Loke Yew.
"The tremors were felt for 15 minutes and did not cause damage to belongings and buildings," he told Bernama.
A spokesman for the Selangor Civil Defence Department said reports of tremors were received from residents in Sections 18, 26 and 28, Shah Alam.
The Meteorological Department also recorded another earthquake measuring 5.1 on the Richter scale at 10.49pm off north Sumatra, about 408km from Klang.
It did not pose a tsunami threat.
A spokesman for the Selangor Fire and Rescue Department said several districts, including Seri Kembangan, Bangi, Putra Perdana, Cyberjaya, Puncak Alam, Sungai Chuah and Kajang, felt the tremors.
The tremors, lasting only five seconds, did not cause any damage to property.
In MELAKA, residents in several areas also felt the tremors from the earthquake.
A Fire and Rescue Department spokesman said reports of tremors were received from those around Pantai Hospital in Ayer Keroh, Peringgit Indah Apartments in Peringgit, and in Ujong Pasir and Melaka Raya between 10.40pm and 10.52pm.
"They were just minor tremors," he added.
Road Safety Campaigns Should Be Result-oriented
13 May 2008, By BERNAMA
PETALING JAYA -- Transport Minister Datuk Ong Tee Keat wants road safety campaigns to be result-oriented, rather than ceremonial.
He said there was a need for the public to continuously participate in such campaigns as most of them (campaigns) did not make it past the initial stage of implementation.
"I have already observed the effectiveness of such campaigns and found that it's about time to change the presentation of such campaigns.
"The preventive measures on road accidents now is only confined to advertisements and guide books on road safety," Ong told reporters after launching the Orange Book at The Otomotif College (TOC) near here Tuesday.
The book is an easy-to-carry, all-in-one guide to refer to sources of information for the Malaysian driver.
Ong, who is also MCA vice-president, said the ministry would work closely with the road transport and road safety departments to organise road safety campaigns which could "touch the soul and hearts of the target audience".
He also suggested that road safety campaigns emphasise on three core elements in future, namely education, engineering and enforcement.
Meanwhile, Ong said there were about 363,319 cases of road accidents reported last year as compared to 341,232 cases reported in 2006, an increase of 6.5 percent.
In terms of road fatalities, Ong said there were about 6,282 cases reported last year as compared to 6,287 cases in 2006.
RTD drives ‘P’ licence into review lane
5 May 2008, By New Straits Times
KUALA LUMPUR: A major overhaul of rules governing motorists is under way, starting with a review of the probationary driver's licence. The Road Transport Department (RTD) is also addressing problems in the registration of vehicles, issuance of licences, enforcement and administration.
But the first step being taken will be in addressing the "P" licence because of flaws in the Kejara demerit points system, which determines if holders get their full licence.
RTD director-general Datuk Ahmad Mustapha Abdul Rashid told the New Straits Times the "P" licence was being reviewed by the Malaysian Institute of Road Safety Research (Miros).
"We have been strict in enforcing it but there are a lot of flaws in the Kejara system.
"For example, it does not apply to the goods driving licence or public service vehicles.
"Rude or cheating cab drivers or lorry drivers who overload their vehicles are not penalised under the system."
Ahmad added that the overhaul, carried out in stages, would be completed by next year.
"We might even propose a new law to supplement or supercede the Road Transport Act 1987."
Miros director-general Professor Radin Umar Radin Sohadi said the idea behind reviewing the "P" licence was to see how drivers' risk and exposure to danger could be minimised.
"Research shows that the first three years after getting a driving licence is the most crucial period with regard to accidents.
"In the first year, the risk of an accident is between 30 and 40 per cent. In the second year, it drops to between 15 and 20 per cent."
In the third year, the figure falls to between five and eight per cent.
He added that the review did not mean that the "P" licence period would be extended.
"It could be reduced, extended or maintained the way it is now. It is too early to say what needs to be done.
"Miros should be able to finalise the research by the end of this year or early next year."
Radin said this was the first time the "P" licence system, also used in the United Kingdom, Australia and New Zealand, was being reviewed.
Miros is emulating the practice in Australia where teenagers are not allowed to drive their peers in their vehicle in the first year of getting a licence.
Miros is also looking at the accreditation, grading and rating of driving schools.
May D-day for rogue
3 May 2008, By The Star
PUTRAJAYA: The Health Ministry has given 27 organisations four weeks from April 28 to state whether they are operating as managed care organisations (MCOs).
Health director-general Tan Sri Dr Ismail Merican said all MCOs were supposed to be registered with the ministry under the Private Healthcare Facilities and Services Act by March 31.
Only six organisations have done so.
“We do not know the status (of the 27) but they are acting like MCOs. We are asking them for an explanation,” he said in an interview.
An MCO, under the Act, is defined as any organisation or body with whom a private healthcare facility or service provider has an arrangement or contract to provide healthcare services within an agreed financing system.
They include insurance companies or their subsidiaries which have contracts with private healthcare facilities or services to provide healthcare to contributors. Insurance companies, any party or agent for the insurance company or third-party administrators who handle medical benefits of workers for a company and have a contract to provide amenities also come under this category.
Dr Ismail warned that there were legal implications if companies failed to provide information as required by the director-general.
Under Section 85(2) of the Act, a maximum fine of RM100,000 can be imposed on a single owner or a maximum fine of RM300,000 on a body, organisation or partnership.
“We do not want to take punitive action yet. But it will be in their interest to register because the ministry can intervene and solve problems for both parties if any problem crops up.”
Patients also have a right to legal redress, Dr Ismail said.
Doctors dealing with unregistered MCOs have also been reminded that it was wrong to do so.
Dr Ismail also said that “fee splitting” – asking doctors to give a discount on their professional fees – was not allowed.
“No one is allowed to compel them to do this. A third party should not dictate this to a doctor.”
Sarawak pupils to be given road safety training
29 April 2008, By The Star
MIRI: Some 40,000 pupils throughout Sarawak, the majority of them aged between seven to 10 years old, will be given intensive road-safety training as part of a major Government effort to curb road accidents in the state.
The training, being handled by the Sarawak Road Safety Department, will involve 1,274 schools statewide.
Assistant State Minister for Infrastructure Development and Communications Lee Kim Shin on Tuesday said the majority of the 40,000 pupils are from Primary One to Primary Four.
"A pilot project for this training has already started in Miri. The road safety lessons will be in the form of a module incorporated into the Bahasa Malaysia subject.
"Every week, at least 30 minutes will be set aside for the road safety lessons in schools. Students will be taught about the dangers associated with roads, the proper way to behave on the roads and how to cross the roads safely.
"The very young pupils will be taught that if they want to cross a road, they must be accompanied by an adult. This is part of efforts to bring down the accident rate in the state," he said after launching a road-safety training course for headmasters, principals and parent-teachers association representatives here.
Lee said Miri has started the pilot training programme and it will eventually be extended to all parts of the state.
The Road Safety Department was formed last year.
Lee also said that his ministry had asked the department to carry out a survey concerning the safety aspects of roads surrounding primary and secondary schools to determine how safe these areas are.
"We want to make sure that roads at the schools are properly improved to ensure that the safety of pupils utilising these roads could be ensured.
"Remedial measures must be taken on those roads deemed as unsafe. Road safety must start at a very young age and the safety of the pupils at their schools must also be given priority attention," he said.
Lee said initial feedback from schools and parents showed that if the young children are given proper training on road safety, they are very responsive and alert to dangers when they are on the roads.
He said some parents have even informed him that their young pupils are the ones who keep reminding them (parents) about dangers on the roads and what sort of safety measures they must take while in their cars.
Sarawak has more than 3,000 schools. The 1,274 schools involved in the road safety training are located in urban regions.
Police bust luxury car theft syndicate
29 April 2008, By The Star
SITIAWAN: Perak police have busted a nationwide syndicate of luxury car thieves and recovered some RM2.5mil worth of vehicles and dismantled parts.
Six men, aged between 20 and 27, were arrested following a raid on a workshop at Ayer Tawar, near here, on April 18.
State CPO Deputy Comm Datuk Zulkifli Abdullah said police found 28 luxury vehicles, including Toyota Harriers and Proton Perdanas, and 27 car engines from three different stores in Ayer Tawar.
“We believe members of the syndicate have been stealing these vehicles since early this year,” he told a press conference here yesterday.
“They brought them to the workshops to be dismantled and then sold them off as spare parts at lower prices.”
DCP Zulkifli added that some of the vehicles had been used in various robberies across the country.
“They involve many people, not just the ones we detained in Perak,” he said.
Police have traced the stolen vehicles to seven robberies cases in Perak, 14 in Selangor, 15 in Kuala Lumpur, four in Penang, three in Kelantan, and one each in Johor and Pahang.
“We are now working closely with our state counterparts to trace the other members of the syndicate,” he said, adding that the six caught in Ayer Tawar had been remanded until tomorrow to assist in investigations.
Vandals blamed for Sabah blackout
22 April 2008, By The Star
KOTA KINABALU: Vandals are being blamed for Sabah's worst blackout since the commissioning of the east west power grid in November last year.
Suspected vandals are believed to have removed steel pieces of a 132kV transmission tower that led to its collapse, triggering a major power blackout Monday lasting nearly six hours from 6.41pm and affecting 300,000 consumers in most areas of the state.
Sabah Electricity Sdn Bhd managing director Baharin Din told a press conference Tuesday that vandals removed about 20 steel pieces holding together a transmission tower at Suang Parai area here.
"It looks like they can get about RM40 in scrap value but caused huge losses and inconvenience to the people of Sabah," Baharin said, adding that the tower itself cost about RM400,000.
He said the transmission line between Kayu Madang and Universiti Malaysia Sabah collapsed and this led to a power trip that caused a domino effect tripping all SESB and independent power plants connected to the various grids.
"We lost about 500MW of power and 90% of the state was affected," he said, adding that Sabah Electricity managed to return power in stages from 7.15pm (Monday) before fully restoring power in all areas by 12.15am Tuesday.
Moves are underway to build a temporary tower with the help of their parent company Tenaga Nasional Berhad using the Armed Forces to help send down a new tower to be set up within three weeks before a permanent tower is put up in four months.
"Right now the situation is fragile as we are using an alternative underground 66kV cable to channel power from one its generation plants here," Baharin said, adding that west coast Sabah was providing most of the supplies to the east coast areas where their generation capacity was low due to old diesel-powered generators.
He said SSEB might implement load shedding depending on the peak demands between 11am and noon and 3pm and noon if the situation warrants.
To a question as to why there was no mechanism to stop the domino effect of the tripping, Baharin replied that such a mechanism can only be done if there is an excess of power supply but right now there is just enough power to meet the demand.
Some 83,000 consumers in Beaufort, Keningau, Tambunan, Tenom, Telupid and Ranau were not affected by the blackout as they are not connected to the grid system and have their own power generation.
Meanwhile, Kota Kinabalu police chief Asst Comm Ahmad Sofi Zakaria said full investigations are being carried out and the police are also checking with scrap dealers to nab the culprits.
Fire dept saved RM9.6b in properties last year
21 April 2008, By The Star
PUTRAJAYA: The Fire and Rescue Department was given a pat on the back for saving property worth RM47.6bil in fires between 2003 and last year.
Housing and Local Government Minister Datuk Seri Ong Ka Chuan said due to the department's timely intervention, it was able to save many properties from being totally damaged.
Last year alone, he said the properties saved were worth RM9.6bil while the losses were estimated at RM865.29mil.
Speaking to reporters Monday after visiting the Fire and Rescue Department headquarters here, Ong added that 80 deaths were recorded last year while those injured in fires were 67 people.
Ong stressed that fire prevention aspects had to be looked at seriously due to the number of deaths recorded.
He suggested that buildings like hotels and shopping centres should be inspected on its fire preventive equipment at least once a year to prevent tragedies.
"Even in foreign countries, hundreds of people die in buildings which caught fire due to them not conforming to fire safety rules," he said.
On emergency calls received, he said 43,863 genuine ones were made last year while prank calls totalled 658.
"Of the number, 22,065 are calls for rescue purposes and 20,225 calls are on fire while the remaining 1,573 are for special services like catching snakes or saving people trapped in elevators," he said.
Selangor has recorded the highest number of calls totalling 10,921 followed by Perak with 5,544 calls, he said.
Ong said the department's efficiency has also earned it international recognition as its services had been requested to put out forest fires in Indonesia in 1997 while 70 personnel were involved in last year's mudslide tragedy in the Philippines.
The department, he said, was allocated RM1.59bil under the Ninth Malaysia Plan for its development expenditure, adding that last year its allocation was RM617.52mil compared to RM357.98mil in 2001.
"The department now has 11,954 full-time rescue personnel nationwide and 13,935 volunteers," he said.
Now Road Tax Can Be Renewed Online
18 April 2008, By BERNAMA
KUALA LUMPUR -- Tired of waiting in queues to renew road tax for your vehicle. Fret no further.
As of Thursday, you can do it effortlessly online.
This is made possible with the launching of online road tax renewal services developed by MY E.G. Services Berhad (MyEG, the leading E-Government services concessionaire in Malaysia.
The service was launched by Deputy Prime Minister Datuk Seri Najib Tun Razak in a special ceremony here Thursday.
The new service does away with the need for the car registration card and the public can access the service through MyEG's interactive portal at www.myeg.com.my and the Road Transport Department's website at www.jpj.gov.my.
Users can opt to have the road tax disc delivered directly to their homes or office.
Besides renewing through online, the public can also renew road tax at E-Service Kiosks placed at the company's 54 E-Service Centres as well as selected bank branches nationwide.
Payment for the online road tax renewal service can be made through credit or debit cards or E-cash (MyEG prepaid account).
Besides all these, the company's integrated portal also facilitates the renewal of automobile insurance policies.
Among other services already introduced by MyEG before this are the online issuance and renewal of driving licences and payment of traffic summonses.
Meanwhile, Transport Minister Datuk Ong Tee Keat said in his speech at the function that the country recorded about eight million road tax renewals last year and that this move was certainly a step in the right direction in allowing Malaysians a time-efficient option in managing their transactions.
Tsunami system can detect other disasters
8 April 2008, By The Star
PUTRAJAYA: The national tsunami early warning system is not only capable of forecasting tidal waves caused by earthquakes but also other disasters, including sea-level rise due to global warming.
Science, Technology and Innovation Minister Datuk Dr Maximus Ongkili said the system was designed to be multipurpose and was equipped with the latest forecasting equipment such as tidal gauges and coastal cameras.
“It shares many of the facilities to forecast severe weather. The tide gauges also have instruments from the Department of Survey and Mapping, and the navy.
“The readings can be used to monitor storm surges, piling of water along the coasts during monsoons, unusual tides and sea-level rise.
“The coastal cameras can be used to monitor high waves and rough seas. These uses will make the early warning system more effective,” he said in his speech at the opening of the fifth session of the Intergovernmental Coordination Group for Indian Ocean Tsunami Warning and Mitigation System here yesterday.
So far, the Government has spent some RM17.9mil in the implementation of the first phase of the early warning system, which, among others, saw the installation of two deep ocean buoys near Pulau Rondo in Indonesia and Layang-Layang island in the South China Sea, and sirens along sea coasts. Another buoy will be installed in the Sulu Sea soon.
Dr Maximus said the Government was now in the midst of implementing the second phase of the project, with the setting-up of an additional 15 tidal gauge stations, 14 coastal cameras and 10 sirens, and the upgrading of the earthquake and analysis system.
“This is expected to be completed by year end,” he said.
On the earthquakes detected near Bukit Tinggit, Pahang, Dr Maximus said the Meteorological Department was conducting 24-hour surveillance on the place every day.
Bukit Tinggi experienced 16 small earthquakes between Nov 30 and March 15, some measuring up to 3.5 on the Richter scale.
Rear seat belts a must soon
9 April 2008, By The Star
PUTRAJAYA: The Road Safety Department will propose to the Government to allow a short grace period for motorists to get rear seatbelts installed and be “prepared mentally” before its implementation.
Department director-general Datuk Suret Singh said the rear seatbelt ruling would be enforced around the third quarter of this year.
“I feel we have given the public enough time to get ready,” he said, adding that the move for compulsory wearing of rear seatbelts did not need to be tabled in Parliament.
He said promotional activities encouraging the use of rear seatbelts had already taken place in the past year and it was time to move forward.
Previously, the Malaysian Institute for Road Safety Research said that more than 80% of cars had rear seatbelts installed.
Suret Singh also spoke about the department’s plans for the rest of the year and said emphasis would be on community-based programmes, such as the helmet-wearing initiatives, that were successfully implemented in 20 districts.
“This particular programme has been well documented and there is already a standard operating procedure so that we can implement it in any district in the country.”
Suret Singh said road safety education was taking off well in schools and now even included security personnel being trained as traffic wardens.
“It is an understanding we have with the company that the Education Ministry hires. They provide the security personnel and we train them as traffic wardens so that there is no need to hire extra people.”
Suret Singh said that by 2011, road safety education would have worked its way up to Form 4 students and that a whole new breed of motorists who took safety seriously would emerge as a result.
Liow: Open forum to discuss health scheme
9 April 2008, By The Star
PUTRAJAYA: The Health Ministry is keen to have a public debate on the National Health Financing Scheme.
Minister Datuk Liow Tiong Lai said a public forum would be the “best way” to address issues and problems on the implementation of the scheme.
“I would like to have a public debate. Let us talk about it,” Liow said in an interview on Monday.
“This is something which will help the people and the Government have better health services in the country.”
When the idea was first mooted 25 years ago, certain parties raised concerns about how the scheme would be implemented.
The proposals included having it modelled after the EPF and Socso schemes where “eligible” employees make monthly payments through a deduction from their salary and both the scheme and the National Health Financing Authority overseeing it would be non-profit and not privatised.
Former Health Minister Datuk Seri Dr Chua Soi Lek announced in 2004 that Prime Minister Datuk Seri Abdullah Ahmad Badawi had given approval and the “general principles” had been agreed upon.
Consultants were also appointed to look into the details of the mechanism and there were even calls for a Royal Commission to be set up to get broad feedback before it was introduced.
Liow admitted that it was not going to be easy for the Government to have such a scheme because it might not be a popular decision.
However, he said the Government “did not have much choice” where the present system has left it subsidising almost 98% of healthcare in the country.
He, however, said it would take about three to four years before the scheme could be implemented.
A plus point of having the scheme was that the people would be able to get treatment either in the private or public sector where the Government would be able to use all existing doctors instead of the current system, he said.
“One way to solve this problem is to have an insurance scheme. It does not matter whether you go to the government or the private sector. The doctor will treat you and the insurance will pay,” he said.
A minus point, however, would be the risk of the government or insurance company going bankrupt because the public had developed a “buffet mentality”.
Asked who was likely to take charge of the scheme, he said it did not matter because the most important thing was for the people to enjoy the benefits.
Stolen motorcycles sold for RM300 in Indonesia
6 April 2008, By New Sunday Times
MALACCA: It seems some Indonesians share more than a similar language with their Malaysian brothers. Their motorcycles seem to have similar registration numbers. It is estimated that some 80 per cent of the motorcycles on the roads of Pulau Rupat, Indonesia, bear Malacca registration plates.
The reason? Motorcycles stolen in the state have been smuggled into the island in east Sumatra and sold for between RM200 and RM300 each.
The discovery was made by four policemen from the state police headquarters who were sent to the island on a field trip last December.
The stolen motorcycles, said state CID chief Assistant Commissioner Zainal Abidin Kassim, were shipped using bot pancung, a light, fisherman's speedboat made of wood.
"If bigger boats were used, the Customs Department would have detected them," he said.
Zainal Abidin said the theft and smuggling of the motorcycles were believed to have been carried out by Indonesian syndicates, with the boats starting out from the Kuala Linggi jetty in Alor Gajah as early as 5am.
It is believed some 10 boats make the trip daily.
"The boat ride to Pulau Rupat takes 30 minutes and 10 motorcycles are loaded onto each boat.
"We have set up a team to track down syndicate members," said Zainal Abidin, adding that four suspects from Indonesia were arrested three weeks ago.
While the index for other types of crime in the state dropped, motorcycle theft increased by 26.8 per cent last year compared with 2006.
Only six MCOs have signed up with Health Ministry
3 April 2008, By The Star
PETALING JAYA: Only six of the 56 managed care organisations (MCOs) had registered with the Health Ministry when the deadline expired on March 31.
“Doctors can only deal with registered MCOs. It is wrong for them to deal with those that have yet to register,” Health Ministry director-general Tan Sri Dr Ismail Merican said Thursday. Dr Ismail said the ministry was considering making the names of the registered MCOs public so that people would know whether the companies they have signed up with are authorised by the ministry to carry out dealings.
“Private healthcare facilities can only deal with those who are registered,” he warned.
He said the ministry was concerned over the number of MCOs, which had yet to register as it would be unable to resolve issues raised by parties affected by the dealings.
Under the Private Healthcare Facilities and Services Act, a MCO is defined as any organisation or body with whom a private healthcare facility or service provider has an arrangement or contract to provide healthcare services within an agreed financing system.
He said all MCOs would be licensed under the Act so it would be able to regulate their activities in their dealings with private healthcare facilities or service providers.
Dr Ismail also said in a statement that “fee splitting” was prohibited under the Private Healthcare Facilities and Services Regulations 2006 and the Malaysian Medical Council’s code of professional conduct.
“Discount for professional fees is not allowed because it would be infringing on the regulations and the code. However, discounts are allowed for administrative fees,” he said.
If “fee splitting “is carried out for professional fees, the practitioner is subject to disciplinary punishment under the Medical Act.
The issue of “fee splitting” is being hotly debated between the Joint Inter-Hospital Healthcare Committee (JIHC) and ING Insurance Bhd.
The JIHC is claiming that ING “refused to budge from its proposed terms and conditions in their new Healthcare Service Panel Agreement (HSPA)” where it was in breach of the Act and compromising quality of healthcare.
ING, however said that its proposed fees are within the Act Thirteen Schedule (2006).
Proton issues recall on its Savvy
1 April 2008, By The Star
Proton is recalling its Savvy over a possible problem with regards to the car’s rear-wheel bearings.
The company said a recent inspection has brought to its attention that water could get into the bearings, which could lead to a malfunction.
“The safety and satisfaction of our customers is a primary concern. As a precautionary measure, we are recalling all Savvys for inspection and repair,” Proton managing director Datuk Syed Zainal Abidin Syed Mohamed said in a press statement.
The recall will affect a total of 34,000 cars. All Savvy owners are advised to take their cars to the nearest Proton Edar or EON service branch for an inspection.
Proton said it would conduct the necessary checks and replacements at no cost to the customer. They can also call Proton i-Care at 1-300-880-888 for further info.
Malaysia To Introduce Nationwide Handphone Blocking System
6 March 2008, By BERNAMA
KUALA LUMPUR -- A handphone blocking scheme for all telecommunication networks will be launched in June.
The Malaysian Communication and Multimedia Commission (MCMC) said in a statement today that by implementing the scheme, stolen handphones reported to the network operators would be blocked and deactivated.
"A stolen handphone cannot be used across any network nationwide, even by using a new SIM card.
The centralised national database of stolen and lost handphones will be connected to all network operators, the Royal Malaysian Police and MCMC.
"Handphones that are deactivated would be rendered as virtually worthless and made unattractive to criminals.
According to police statistics, more than 100,000 handphones were reported stolen last year," the statement said.
Study: Traffic crashes cost billions
5 March 2008, By Yahoo News
Traffic crashes cost American motorists more than $160 billion a year while inflicting a staggering per-person toll on small cities such as Little Rock, Ark., Columbia, S.C., and Pensacola, Fla., according to a AAA research report.
The study, to be released Wednesday, found that traffic crashes have a much more damaging impact on society than the bumper-to-bumper congestion that riles commuters in many metropolitan areas.
Maryland-based Cambridge Systematics Inc., which conducted the research for the automobile association, found that crashes cost U.S. motorists $164.2 billion a year, or about $1,051 per person. That's more than double the $67.6 billion in annual costs from congestion, or about $430 per person.
To calculate the crash costs, researchers took into account factors such as property damage, lost earnings, medical costs, emergency services, legal costs and travel delays.
The nation's largest cities, such as New York and Los Angeles, face billions of dollars in costs each year from car accidents. In the New York metropolitan area, they cost the region $18 billion a year, or about $962 per person, while they cost Los Angeles more than $10 billion a year, or $817 per person.
Researchers, however, found that residents of smaller cities faced a larger per-person burden. Crashes in the Little Rock-North Little Rock region in Arkansas cost $1.4 billion, or $2,258 per person, while car wrecks carried a price tag of $1,772 a person around Pensacola, Fla., and $1,568 a person in Columbia, S.C.
Robert L. Darbelnet, AAA's president and chief executive, noted that nearly 43,000 people die each year on the nation's roadways but that "the annual tally of motor vehicle-related fatalities barely registers as a blip in most people's minds."
"It's time for motor vehicle crashes to be viewed as the public health threat they are," Darbelnet said.
To address the high costs, AAA recommended that lawmakers make safety more of a priority in their transportation planning and pursue measures such as stiffer laws on drunken and impaired driving. The organization also recommended that all states pass primary enforcement seat belt laws, which allow law enforcement officers to stop motorists if their only offense is failing to buckle up.
Legislators in 26 states and the District of Columbia have primary enforcement laws. The remaining states have secondary enforcement laws, which allow tickets for seat belt violations only if motorists are stopped for other offenses. New Hampshire has no seat belt law for adults.
Among other cities, the researchers found that crashes cost:
_$1,439 a person in the Miami-Fort Lauderdale area.
_$1,368 a person in Phoenix, Mesa and Scottsdale, Ariz.
_$1,058 a person in the Seattle-Tacoma-Bellevue, Wash., region.
_$887 a person in the Chicago metropolitan area.
_$868 a person in the Detroit metropolitan region.
_$658 a person in the San Francisco Bay Area.
Researchers were unable to provide results for Atlanta and for cities in Massachusetts and Texas because of a lack of data critical to the study.
Singapore link in stolen car racket
4 March 2008, By New Straits Times
PETALING JAYA: Singapore has been identified as one of the transit points for cars stolen in Malaysia before being shipped to buyers in the Middle East and Africa. This was discovered following the seizure of 45 stolen cars worth RM5 million in the republic recently.
The operation also saw the arrests of 17 syndicate members, including three Singaporeans.
Describing it as the biggest bust against car theft syndicates in recent times, Federal CID director Datuk Mohd Bakri Zinin, attributed the success to joint operations between Malaysian police and their Singaporean counterparts.
The operation began in December following the arrest of three suspects in Johor after a tip-off.
Investigations then revealed how stolen vehicles were smuggled into Singapore in containers.
"The syndicate had used false documents to ship the vehicles," Bakri said at the Asian Pacific Auction Centre in Subang here yesterday.
The vehicles were mainly four-wheel-drive models including Nissan X-trail, Frontier, Murano, Toyota Hilux, Toyota Fortuner and Honda CRV.
The vehicles were surrendered to their respective insurance companies yesterday.
Those arrested, including three Singaporeans between the ages of 25 and 35, were charged recently. Two of them are being detained under the Emergency Ordinance.
Bakri said the syndicate members had also used several of the stolen vehicles to commit crimes there. For example, he said, one of the Toyota Hilux stolen in Ipoh was used in a robbery there.
"The syndicate members used various methods to steal the vehicles, including staging accidents and forcing the drivers to stop by pretending to be car repossessors.
"We believe some of the stolen vehicles have already reached overseas buyers and we are working with our counterparts there to recover the vehicles."
Car theft ring busted, 45 vehicles worth RM5mil seized
4 March 2008, By The Star
PETALING JAYA: Police have busted one of the country’s biggest car theft syndicates with the arrest of 17 people, including three Singaporeans, and the recovery of 45 luxury vehicles, mostly 4WDs, worth RM5mil from Singapore.
The vehicles, including makes like Nissan X-Trail, Toyota Fortuner, Toyota Hilux, Nissan Frontier and Honda CRV, were recovered from various areas in Singapore such as housing estates as well as from the transshipment area at the port.
The cars were to be re-exported to other countries including those in the region, the Middle East, Hong Kong, Europe and South Africa.
They were driven or shipped into Singapore in containers using forged documents and registration numbers.
Twenty-one of the vehicles were reported stolen in Selangor, eight in Kuala Lumpur, six in Penang, five in Negri Sembilan, four in Johor and one in Perak.
Federal CID director Commissioner Datuk Mohd Bakri Zinin said, with cooperation from their Singapore counterparts, a high-profile team from Bukit Aman and Selangor swung into action and arrested three of the syndicate members on Dec 11.
He said follow-up investigations led to the arrest of another 14 suspects and the recovery of the vehicles, adding that all the suspects, aged between 25 and 35, were picked up in Johor and Singapore.
Two of them have since been placed under the Emergency Ordinance while the rest have been charged in court.
Comm Mohd Bakri said the syndicate members used several methods to steal the cars, including acting as repossessors and carjacking.
“Investigations found that the syndicate, which has been active for the past two years, was very slick in its operations and had a good networking system.
“The members also knew how to disarm the alarm systems of the vehicles,” he told reporters at the Asia-Pacific Auction Centre in Subang yesterday before the vehicles were handed over to 17 representatives from various insurance companies.
Comm Mohd Bakri said police were working closely with Interpol, Aseanapol and the Customs Department to track down more stolen vehicles, including in Thailand and Indonesia.
“We are very concerned about transnational crime and we are having regular meetings with Interpol on motor vehicle theft eradication,” he said.
Comm Mohd Bakri also warned the public to be wary of those selling luxury or expensive cars at very low prices, as they could have been stolen.
“We urge the public to check with the Road Transport Department and Puspakom on the authenticity of a vehicle before buying it,” he added.
Expert: Local insurers in the dark over ICAR
12 February 2008, By The Star
KUALA LUMPUR: Many insurers face difficulties in determining the internal capital adequacy ratio (ICAR) required under the risk-based capital framework (RBC).
This is due to a lack of understanding in enterprise risk management (ERM) and building a risk cum capital management model, said Institute of Internal Auditors Malaysia former president Vijayam Nadarajah.
Vijayam, who is now a finance head of a general insurer, said: “The evaluation criteria of enterprise risk is unclear to many insurers and they are looking for some guide on identification, assessment and particularly on quantification of qualitative issues and the eventual contribution to the determination of ICAR.
“Although the foreign insurers may be able meet the deadline for the RBC framework by Jan 1, many local insurers may not as they are unclear on the process of developing the risk cum capital management models, and in addition, do not have a prescription to adopt.”
ICAR is the capital required by a company to meet premium and claims liabilities and risks such as credit, market, operational and interest rate risks, among others.
Insurance companies need to be RBC compliant next year. The framework requires an insurer to maintain an ICAR that commensurates with its risk profile.
Vijayam said insurers were faced with the challenge of depending on enterprise risks in arriving at and determining the ICAR.
Insurers, therefore, had to aggressively prepare some risk models by learning from other global solvency regimes, she told StarBiz at the recent Financial Resilience of Insurers conference.
At the same time, solvency regimes elsewhere were also consolidating their experiences and putting their act together to ensure success in implementing at some future date, she added.
“Some of the other problems in determining this ratio include computing economic capital, economic reinsurance protection management and capital injection and exiting as these measures focus on real earnings, profitability and real returns on capital, Vijayam said.
ERM is a systematic and disciplined approach to managing risk throughout an organisation. It enables the organisation to assess risk and identify the steps it can take and resources it should allocate to overcome or mitigate risk.
Based on this understanding, stress testing the capital adequacy on likely scenarios and sensitivities could be performed to ensure the determination of ICAR would be more meaningful, Vijayam noted.
According to Vijayam, running the relevant statistics for ICAR was made worse in view of the current market volatility.
A sound ERM system would help better manage an insurer's business to ensure better financial results and overall preparedness for a new solvency regime, she said.
ERM, she added, was the foundation of prudent corporate governance and assisted insurance companies in making better informed decisions and hence improve underwriting profits.
Papa against monopoly
5 February 2008, By The Star
PETALING JAYA: The Home Ministry should not start a monopoly in the sector of insurance for foreign maids. Instead it should let it be an open market and allow the consumers to pick and choose.
This was the suggestion by the Malaysian Association of Foreign Maid Agencies (Papa), which had formulated a maid protection plan at RM75 premium for two years compared with the Ministry’s proposed scheme at RM75 per year.
“The main principle here is to offer protection for the maids, most of them from Indonesia. This is of national concern and Papa is backing the Government 100% on this.
“However, what we found disturbing was the intention by the Home Ministry to only allow one government-linked company to handle the coverage. A monopolistic system has often been not favourable to consumers,” said Papa chairman Datuk Raja Zulkepley Dahlan.
Papa was also concerned the Ministry might not have been presented with several options before deciding on the RM75 annual premium package.
On Jan 16, Home Minister Datuk Seri Radzi Sheikh Ahmad announced that insurance for maids would be made compulsory and the Government would launch the scheme soon.
Papa immediately objected to the scheme, which seemed to be on the high side, in terms of cost.
For example, Papa’ scheme was much lower at RM48 premium for a year or a reduced rate of RM75 for two years .
“Since different parties think their insurance packages are worth the money and offer better protection, let’s leave it to the open market. In fact, there are also other insurance schemes for maids out there and consumers should be given the chance to shop around before deciding on which package to buy.
“This way, the maids are protected, consumers still have a choice and there is healthy competition among the insurers – it is a win-win situation for all,” said Raja Zulkepley.
Papa secretary Foo Yong Hooi said the insurance scheme was crucial to send a message to Indonesia that Malaysia cared for their nationals.
“The shortage of Indonesia maids is getting critical. Not only is the supply scarce because we lose out to higher paying countries, but the bad press about the abuses of maids makes Indonesians unhappy.
“Having the insurance scheme is a reassurance that Malaysia does not tolerate abuse, and that we are taking positive action to care for the maids’ welfare,” said Foo.
Psst, want a 'new' Waja for RM9,000?
24 January 2008, By The Sun
KUALA LUMPUR: Thinking they had gotten great deals for the almost-new Proton Wajas, at least 16 people received a blow when police turned up at their homes and told them the vehicles were reported stolen.
The victims, including a teacher, soldier and civil servants, were duped by a car theft ring into buying the vehicles several months ago at a fraction of the market value.
The buyers, who lived in small towns in Perak, Kedah, Penang and Perlis, paid between RM9,000 and RM12,000 for the Wajas. Many of them were low-income earners. They told police that they had parted with their hard-earned savings kept to perform the Haj and for other important purposes as the offer was just too hard to pass up.
The recovery of the cars and crippling of the syndicate's activities followed month-long surveillance and intelligence gathering by a crack team from the Kuala Lumpur CID's anti-car theft (D4c) division.
The 12-man team launched the week-long operation on Jan 16 and headed to Kuala Kurau where they arrested a man in his 40s.
Sources said the suspect, who was the fence, led police to the houses of the buyers where the 16 Wajas and a Proton Wira were seized. The recovered vehicles are now in the Semanggol police station near Taiping.
Police told the shocked buyers the cars had been stolen in several northern states.The suspect had told the buyers that the cars were repossessed and disposed by banks at low prices as the vehicle owners were no longer traceable.
It is learnt that the syndicate had fitted false registration plates bearing details of Wajas registered in the Federal Territories.
The cars also came with registration documents and road tax stickers which police later discovered were fakes.
Police seized the latest car on Monday (Jan 21) and believe there are at least a dozen more in the hands of unsuspecting buyers.
The suspect has been remanded in the Kuala Lumpur police headquarters.
Sources said a hunt for the mastermind of the syndicate and its remaining members is ongoing.
Police bust ring dealing in stolen lorries
18 January 2008, By The Star
KLUANG: Police have busted a syndicate that refurbishes stolen lorries before selling them off.
Five men in their 30s, including lorry dealers, were arrested in Johor Baru, Kluang and Pahang on Jan 7.
Police also recovered six stolen lorries worth about RM210,000.
The group’s modus operandi was to erase a lorry’s chassis number, forge documents, paint the vehicle in a different colour and sell it through dealers.
Kluang OCPD Asst Comm Fawzi Arshad said the lorries were reported stolen in Kluang, Batu Pahat and Kota Tinggi last year.
All the suspects have been remanded.
Suresh Gang crippled
18 January 2008, By The Star
IPOH: Police have crippled the Suresh Gang, which specialises in selling stolen car parts, with the arrest of 11 members in the past week.
Ipoh OCPD Asst Comm Azisman Alias said the 11 members, including a Nepalese man, were picked up after a task force was set up to investigate the gang.
“We arrested the first man, believed to be the mastermind, at his home in Tanjung Rambutan at 7pm on Jan 4,” he told a press conference Thursday.
The others were picked up at various places here, in Sungai Siput and Menglembu. Police are still looking for two more members of the gang.
“We also raided two workshops and confiscated about RM500,000 worth of spare parts, scrap metal and all kinds of components of the stolen vehicles,” ACP Azisman said.
He said the suspects, aged between 19 and 64, were found dismantling the parts of the stolen vehicles at the workshops.
Police also recovered four lorries, three cars, two car engines, windscreens, bumpers, tyres and other accessories.
“We can link them to several theft cases in Ipoh and even outside Perak, in places like Puchong,” ACP Azisman said.
Recent Floods Cost Govt RM900 Mln
11 January 2008, By BERNAMA
PUTRAJAYA -- The recent floods in Pahang, Johor, Kelantan and Kedah have cost the government about RM900 million, Deputy Prime Minister Datuk Seri Najib Tun Razak said today.
The sum comprised RM813 million in losses as a result of the flood damage and about RM100 million more in compassionate aid for the flood victims, he added.
Najib spoke to reporters after chairing a special meeting of the National Disaster Relief and Management Committee at the Prime Minister's Department, here.
The meeting was called to determine the impact of the floods, which hit the four states in December last year, and the mode of compassionate aid for the victims.
Najib said the RM900 million did not take into account personal losses which he added would have tripled the sum.
He said the compassionate aid approved at today's meeting would be distributed to the flood victims shortly, and that the follow-up would be handled by the National Security Council.
Najib said he, ministers and the four menteris besar would go down to the ground to hand over the aid.
The compassionate aid would be given to 21,451 families who were evacuated to flood relief centres as well as 17,386 families affected by the floods but did not move to the relief centres.
Explaining the quantum of aid, he said the committee decided to use the formula adopted last year.
As such, RM1,100 is to be given to a household whose house was flooded to a depth of more than five feet (1.52 metres) and RM700 to a household whose house was flooded to a depth of less than five feet.
The owners of 39 houses which were destroyed by the floods will be given RM3,000 each.
Najib said Syarikat Perumahan Negara Berhad (SPNB) would rebuild the houses of these victims and each owner would have to pay one-third of the cost of the house.
He also said that RM5,000 would be given to each of the 33 families of the people who had died in the floods.
Najib said RM25.6 million had been allocated as agriculture aid for people who suffered destruction of padi, aquaculture, coconut and livestock.
He said the damage to public property was estimated at RM776 million, with Pahang suffering the highest damage of RM302 million and Johor next at RM185 million and Kelantan at RM175 million.
The damage to property of government-linked companies (GLCs) was RM36 million, and such property included Tenaga Nasional Berhad (TNB) sub-stations and that of Keretapi Tanah Melayu (KTM) Berhad.
Najib said the flood victims to be given compassionate aid must be verified by the village headman or village development and security committee, even if they did not have to evacuate during the floods.
RM50mil gone during floods
8 January 2008, By The Star
PUTRAJAYA: About 16,000 farmers and fishermen suffered almost RM50mil in losses in the recent floods that hit several states.
Agriculture and Agrobased Industry Minister Tan Sri Muhyiddin Yassin said padi farmers were the worst hit, with RM22.4mil in losses.
Livestock breeders suffered RM8.3mil in losses and it was RM5.5mil in losses for fishermen, he said.
“About 13,522ha of padi fields were affected while livestock breeders lost 82,029 animals,” he told a press conference after delivering his New Year’s message at his ministry here yesterday.
He said the states where agriculture sectors were badly affected were Kedah, Johor, Negri Sembilan, Terengganu and Kelantan.
“My ministry will be bringing the matter up to the National Disaster Management Committee, and they will decide on how much assistance will be handed out to those affected. But it is not compensation,” he said.
Asked about the Anti-Corruption Agency’s probe against rice distributor Padiberas Nasional Bhd (Bernas), he said it was still being conducted but the approved permit (AP) had been given out.
It was earlier reported that Bernas was being questioned for bringing in 25,000 metric tonnes of fragrant rice worth about RM60mil from Thailand without an AP.
This resulted in 10,000 tonnes of rice being held at the Pasir Gudang port on Dec 31. Another 10,000 tonnes were held at the Kota Kinabalu port and 5,000 tonnes in Port Klang.
Muhyiddin said in its agreement with the Government, Bernas should have 92,000 metric tonnes of rice stockpile at any given time.
“The stockpile of rice is extremely important – we would also like to know how Bernas is handling the matter.
“As world consumption goes up, do we have enough stockpile if there is a crisis? Is the supply enough for the country’s consumption?
“From what I can see, the stockpile is not really a stockpile, just floating stock. You cannot just count the rice, which has not been sold, and say that’s stockpile,'' he added.
MMA Against Discounts For Corporate Clients
26 December 2007, By BERNAMA
KUALA LUMPUR -- The Malaysian Medical Association (MMA) says it is opposed to giving discounts to corporate clients as this could mean cutting corners and compromising the safety of patients and standard of care.
Its president, Datuk Dr Khoo Kah Lin, said another reason was that the practice of medicine was not a trade but a service and hence should not be commercialised.
Writing in the President's Column of MMA's latest newsletter, he said corporate discounts, especially mooted by large multinational bodies and insurance companies, appeared to make the practice of medicine a business as opposed to what it should be -- a profession whereby the primary role of the doctor is to provide appropriate medical care to the patient.
"The interest of patients should always come first, especially beyond any business consideration," said Dr Khoo.
He added that the time of doctors should be spent entirely on the provision of patient care rather than having to deal with distractions such as negotiating with large corporations in the matter of discounts or deals.
Dr Khoo said that at present doctors' fees were based on the MMA's schedule, which included consultation and procedural fees for general practitioners and specialist consultants.
The fees schedule was introduced way back in 1987 and had been revised three times to keep up with current costs. The last revision was in 2002.
Dr Khoo said that generally the fees schedule had been well accepted by all stakeholders and there were no major issues regarding its validity and acceptance.
In fact, the government recently reinforced the legitimacy of the MMA schedule by adopting it almost entirely for the regulations of the Private Healthcare Facilities and Services Act 2006.
"What started as a guideline three decades ago has now become law," said Dr Khoo.
Cultivating five-star drivers
24 December 2007, By The Star
KAJANG: Learner drivers will soon have to go through a more comprehensive syllabus so that they can become better drivers.
The new curriculum will close the “gaps”, mostly in the area of road safety, in the current syllabus while tests may be conducted in cars or motorcycles fitted with video cameras, sensors and instruments that will detect every move – and mistake – which the driver makes.
The new curriculum, which will be implemented in the next three to six months, has been drawn up by the Malaysian Institute for Road Safety and Research (Miros) which was set up by the Government to improve road safety.
Miros director-general Prof Dr Radin Umar Radin Sohadi said the new curriculum was part of a larger programme called the Road User Assessment Programme (RUAP).
“The ultimate aim is to create five-star drivers,” he said.
He said that while the rest of the world took a “systems approach” which looked at enforcement and infrastructure, Malaysia wanted to focus on the road user.
As an example, Prof Radin Umar said that under the current motorcycle syllabus, unlike for cars, riders were only trained and tested in a circuit.
“This is a controlled environment and offers the learner no experience of what it is like in the real world.
“In future, learners will be taken out on the road where they will be exposed to real world traffic during training.
“Their tests will also be carried in real world traffic,” he said.
Prof Radin Umar said motorcycle learners would go out in groups of eight together with two instructors in conspicuously coloured motorcycles to ensure their safety.
On the instrumented vehicles, Prof Radin Umar said the video cameras and sensors installed would enable driver behaviour and habits while on the road to be monitored objectively.
“The vehicles are still being calibrated and will have to be tested extensively before being implemented,” he said.
Prof Radin Umar said another aspect of RUAP was that surveys on Malaysian road users would be carried out periodically.
This was to assess how good the users were in understanding traffic laws.
“This will also serve as a way to get feedback to further improve our driving syllabus and other aspects of RUAP,” he said.
Prof Radin Umar said RUAP was a long-term initiative to create a safer road environment.
“We hope to be able to have drivers who are not only aware of safety procedures but also know why it’s there,” he said.
At least 29 killed in flood havoc
19 December 2007, By The Star
KUALA LUMPUR: At least 29 people have died from the floods which have hit various states since early this month.
Kelantan recorded 14 deaths, followed by Pahang with 11 deaths – three of which in the last 48 hours – and Johor with four deaths as of yesterday.
In Pahang, two of the latest victims were found floating in Sungai Endau in Rompin by search and rescue personnel at about 10.30am yesterday.
They were identified as Zamri Mohamad, 29, of Kampung Lang Kiri and Indonesian Atong, 50, an estate worker. Both men were reported missing on Sunday after going fishing near the river.
Paraplegic Mohd Yuslan Othman, 30, drowned near his home in Kampung Serandu in Pekan late on Monday.
The number of evacuees has increased from 22,549 to 23,026 people. They are being housed in 142 flood relief centres.
Pekan recorded the highest number with 10,193 people in 40 centres.
Other districts affected were Temerloh (4,069 people), Maran (3,235), Bera (2,257), Rompin (2,057) and Kuantan (1,215).
Roads into Pekan from Kuantan, Muadzam Shah and Rompin were still cut off due to floods.
In Kelantan, the number of evacuees increased to 8,352 from 2,000. A dam bursting in Narathiwat in southern Thailand has aggravated the situation.
Most of the newly evacuated were residents from the Tumpat district. The latest fatality was reported yesterday.
The road from Gua Musang to Kota Baru remained impassable due to landslides.
Motorists from Kuala Lumpur should use the East-West Highway instead of the road to Gua Musang.
The Meteorological Department has issued a Yellow Stage advisory on heavy rain for the state and neighbouring Terengganu.
In Johor, the situation improved as the number of flood evacuees declined to 2,994. There were 814 families temporarily housed in 39 flood relief centres statewide as of 4pm yesterday.
The worst hit district is Muar with 1,504 victims in 13 centres.
Segamat is second with 1,179 victims at 19 centres followed by Johor Baru with 230 victims in three centres and Batu Pahat with 63 victims, also in three centres.
Flood relief centres in Kluang, Mersing and Pontian have closed after evacuees were allowed to go home.
The Meteorological Department said moderate rain currently occurring in Johor was expected to continue until tomorrow.
It has issued an Orange Stage warning for Segamat, Muar, Batu Pahat, Kluang, Johor Baru, Kota Tinggi and Mersing.
15 Puspakom staff sacked for various offences
19 December 2007, By The Star
JOHOR BARU: Fifteen Puspakom staff have been sacked this year for corruption and not following the standard operation procedure when inspecting vehicles.
Chief executive officer Datuk Salamat Wahit said the company had reported all criminal misdeeds to the police and Anti-Corruption Agency.
On the recent arrest of three Puspakom staff in the state, he said the company welcomed the ACA’s move.
“Our company views such matters very seriously as it is important to ensure that vehicles that are not roadworthy are taken off the roads so that they do not pose a threat to other road users,” he said in a statement.
Salamat hoped that the public would help Puspakom by providing tip offs and information for the company to take the appropriate action.
Those with information can directly contact Salamat at 019-3859666.
The number is being displayed in all the 66 branches of Puspakom nationwide.
Police arrest expert car-theft couple
18 December 2007, By The Star
KUALA LUMPUR: A couple said to be able to steal a car in under a minute has been arrested.
Police nabbed the couple from Perak as they were getting into a stolen car in Taman Tasik, Ampang, at 1.15pm on Dec 8.
Ampang Jaya police chief Asst Comm Abdul Jalil Hassan said the couple were professional car thieves and had all the latest equipment used to steal cars.
Police recovered a Toyota Vios, Perodua Myvi, Naza Citra and two Proton Iswaras from the couple, who were active in the Klang Valley.
“We are investigating whether the couple have any international links,” he said.
4WD smuggling rings smashed
18 December 2007, By The Star
JOHOR BARU: Two smuggling syndicates that use two ports in Johor before using Singapore as a transit point to ship stolen vehicles to Kenya and the United Arab Emirates have been busted.
Police recovered 32 stolen vehicles worth more than RM3.4mil. Some of the models include Toyota Hilux, Toyota Fortuner, Nissan X-Trail, Nissan Frontier and Toyota Innova.
The vehicles were reported stolen in Johor, Perak, Selangor, Kuala Lumpur, Negri Sembilan and Penang.
A series of raids by a task force also led to the arrest of 50-year-old Malaysian man and two Singaporean men, aged 26 and 28.
The syndicates would hide the stolen vehicles in containers before taking them to Pasir Gudang Port and Tanjung Pelepas Port.
They then shipped the containers through these two ports to the Keppel Terminal in Singapore before exporting them to the UAE and Kenya.
They used Singapore as a transit point because of easier access to the overseas market.
Forged declaration documents stating that the shipments were furniture and vehicle spare parts were used to deceive Customs officers.
Johor police chief Deputy Comm Datuk Hussin Ismail said 12 4WD vehicles in four containers were seized from a Tanjung Kupang warehouse on Nov 21.
A week later, they picked up the three men at an empty warehouse in Bukit Batu, Kulai.
Police later recovered another 12 vehicles at Pasir Gudang Port.
Police intercepted a shipment of cars at the Keppel Terminal with the help of the Singapore police.
10 charges, two courts for one insurance scam
13 December 2007, By The Star
JOHOR BARU: An unemployed man had 10 charges against him in two magistrate’s courts here over an insurance scam involving more than RM1.2mil.
Chong Chee Seng, 46, from Taman Soon Chong, in Chaah, Segamat, was alleged to have committed the offences from 1992 to 2002. He pleaded not guilty to all the charges.
He was alleged to have committed the offences against two insurance companies at 101, Tingkat 1, Pan Global Plaza, Jalan Wong Ah Fook in Johor Baru, Johor.
He was alleged to have submitted false death certificates, burial permits, police reports, attending physician’s statements and medical reports under the names of 10 people.
He was also accused of cheating the insurance companies into making policy payouts over the alleged deaths of the policyholders.
He was charged with five counts in each of the two magistrate's courts he was brought to.
In the first court presided by magistrate Rasidah Roslee, the offences involved a sum totalling more than RM751,000.
Rasidah fixed bail at RM39,000 for all the five charges.
In the second court presided by magistrate Nor Shahid Abd. Malik, the sum involved in the charges was more than RM499,400 and bail was fixed at RM27,000.
Both Rasidah and Nor Shahid fixed March 26 trial. The accused failed to post bail.
Be true to patients, not insurers
5 December 2007, By New Straits Times
KUALA LUMPUR: Duty before profit. This is the advice from Malaysian Medical Association president Datuk Dr Khoo Kah Lin to doctors.
He said they should be guided by clinical expertise and not insurance companies.
"Although the insurance coverage depends on how much premium you pay, the companies should not restrict doctors from conducting tests they think are necessary for patients.
"Doctors know what's best for their patients," he said.
Life Insurance Association of Malaysia president Sonny Tan, however, denied that insurance companies were restricting coverage to only certain cases and tests.
"Insurance companies don't own the hospitals. We can't dictate what doctors should or shouldn't do," he said.
Tan added that doctors should not concentrate on how much money their patients were paying to determine what kind of treatment should be given to them.
"If you go to private hospitals, the first thing they will ask is 'do you have insurance coverage?'. This is a sad thing," he said.
He added most insurance companies were not making money from healthcare as the cost of private healthcare increased every year.
"Medical cost increases by about 13 per cent a year. But we can't easily raise premiums as it will affect our customers," he said.
Health Minister Datuk Seri Dr Chua Soi Lek yesterday highlighted the issue of insurance companies restricting coverage to only certain cases and tests conducted by doctors.
He had also expressed concern over exorbitant rates charged by private hospitals, saying "the rates are going up by the day and are profit-driven".
Dr Chua had said that the government was concerned about the steep charges and the matter had been discussed by the cabinet.
Malaysian Medical Council president Tan Sri Dr Ismail Merican said the council had received complaints on hospitals billing patients exorbitantly.
Sick of docs who overcharge
4 December 2007, By The Star
Cabinet Concerned Over High Medical Rates
PUTRAJAYA: A patient who was checked on 15 times a day while he was staying at a private hospital was charged RM3,000. Another was billed RM2,000 for the 10 times he was checked on.
These patients have the right to file official complaints.
Ticking off private hospitals and doctors who hit patients with ever increasing fees, Health Minister Datuk Seri Dr Chua Soi Lek said the Cabinet was concerned about these exorbitant charges on patients, including unnecessary tests.
“Certain parties are trying to rake in profits by charging patients too much,” he told a press conference yesterday after meeting officials of the Malaysian Medical Association (MMA).
“The public has a right to complain. There are guidelines for charges. Some doctors, who are famous, increase their charges to control the number of patients they see.”
Dr Chua said they could complain to the MMA or the Malaysian Medical Council (MMC) which has the power to take action on complaints, especially on ethical issues such as issuing warning, suspension or deregistration.
He also said that charges by doctors would continue to increase because of the rising healthcare cost for medication, equipment and IT components.
“It is not just to look after the sick but also a business undertaking where the profit line is important to shareholders,” he said.
Under the Private Healthcare Facilities and Services Act 1998, he said 29 clinics had been sealed and 19 “fake” doctors traced.
On the extension of housemanship from one year to two years, Dr Chua said it was important for patients to get proper treatment from qualified doctors.
A total of 603 housemen failed to get fully registered from the 1,200 yearly from 2001 to 2004. It was 176 in 2001, 162 in 2002, 102 in 2003, 118 in 2004 and 45 two years ago.
“These figures are worrying for a developing country. It is nearly 10%. Most is for poor work performance and some of them just take unpaid leave and disappear because they say the medical profession is not suitable for them. This cannot continue,” he said.
Dr Chua said senior doctors had been instructed that they must supervise and train the younger ones.
SLAMMED: Exorbitant charges, unnecessary tests, coverage restrictions
4 December 2007, By New Straits Times
Health minister concerned as patients query RM3,000 'how are you?' bills.
PUTRAJAYA: Imagine, you're in hospital and the doctor comes around 15 times a day to ask "how are you?"
Now think about the bill. At RM200 per visit, you end up forking out RM3,000 a day, just on consultations - needed or otherwise.
Health Minister Datuk Seri Dr Chua Soi Lek told the cabinet about two patients who experienced this and the ministers were not happy.
The government, he said, was concerned about the exorbitant charges at some private hospitals and the "unnecessary" tests they recommended.
"Some doctors feel that the investigations are necessary. These are, however, debatable and contentious.
"The public has the right to lodge complaints with the Malaysian Medical Council (MMC) and Malaysian Medical Association (MMA) if they are unhappy with the services or ethics of doctors," Dr Chua said after a meeting with the MMA yesterday.
The MMC, he said, could issue warnings, suspend doctors or de-register them if they were guilty of committing an offence.
But he added that it was inevitable that the cost of healthcare would rise because of the increasing cost of medication, equipment, and the introduction of information technology into hospitals.
He also said that the Health Ministry's enforcement unit had shut down 29 clinics for various offences and caught 19 bogus doctors.
Enforcement will be beefed up next year when 30 officers are added to the current 70-man team.
On the meeting with MMA, he said the ministry agreed that insurance companies should not limit doctors' fees and tests in their policies.
The insurers are subject to the Private Healthcare Facilities and Services Act 1998 and must register with the ministry.
"They are subject to clauses under the law... this includes the services by doctors to patients covered by insurance companies. We feel the clinical judgment of medical practitioners should not be compromised by these companies."
Ops Sikal to be held all year long
23 November 2007, By The Star
PUTRAJAYA: In the past 10 months alone, about 55,000 motorcyclists have been caught riding their vehicles without a valid driver's licence while another 9,507 had expired licences.
The total number of summonses issued to motorcyclists for these and various other offences stands at 253,155, according to police statistics.
Due to this and the fact that motorcyclists and pillion riders are still recording more deaths than others in road accidents, the Government will hold Ops Sikal throughout the year.
Ops Sikal which started right after Ops Sikap ended on Oct 22 is targeted to reduce fatalities among motorcyclists by six a day and 1,000 a year, said Road Safety Department director-general Datuk Suret Singh.
He said from Nov 8 to Nov 22 the number of motorcyclists and pillion riders dying on the road was 103 of the 182 total deaths recorded.
Joint operations by the department, the police and the Road Transport Department (JPJ), he said had managed to reduce accidents to a certain extent but there was room for improvement.
"The crackdown on express buses had been good since it started some time in August because from Nov 8 to Nov 22 no fatal accidents involving buses had been recorded," he told reporters at a media briefing.
Suret added that about 90% of rural motorcyclists were now wearing safety helmets after the department started its campaign at 150 rural districts.
"We are still not satisfied until we see 100% motorcyclists using helmets in rural areas," he said, reminding motorcyclists to also buckle up their helmets as 68% of the 3,693 fatalities involving motorcyclists were through head injuries.
"This applies also to cyclists, especially students," he said, hoping to have a campaign in future to give students bicycle helmets to create awareness.
Oct Vehicle Sales Up 4.9 Pct To 42,915 Units
19 November 2007, By BERNAMA
KUALA LUMPUR -- Motor vehicle sales in Malaysia continued to improve in October to record a 4.9 percent increase to 42,915 units compared with 36,653 units in the corresponding month of last year.
In a statement here today, Malaysian Automotive Association (MAA) said, however, against September this year, sales were down by 5.5 percent, or 2,601 units.
"The lower sales were due to shorter working month because of Hari Raya festive holidays," it said.
MAA said year-to-date vehicle sales declined to 401,149 units compared with 418,056 units in the same period in 2006.
"Passenger cars accounted for 39,198 units and commercial vehicles 3,717 units for the sales in October this year.
MAA said total industry production in October 2007 rose to 34,829 units from 29,872 units in the same period last year.
"Passenger cars accounted for 31,480 units and commercial vehicles 3,149 units," it said.
It said for the first ten months of this year total production fell to 361,969 units, comprising 330,001 units of passenger cars and 31,988 units of commercial vehicles compared with 429,896 units in the same period last year.
On the outlook for November 2007, MAA said, the sales volume was expected to be slightly better.
90% of m-bikers without a licence
7 November 2007, By The Star
PUTRAJAYA: More than 90% of 38,486 motorcyclists checked by the Road Transport Department in a recent operation did not possess a valid licence.
“In addition, we found during the operation that the road tax of 2,111 motorcyclists had expired," said RTD enforcement director Salim Parlan.
"This is serious because if these motorcyclists are involved in an accident, they would have no insurance coverage," he told members of the media after a meeting between RTD, the Road Safety Department, Malaysia Institute of Road Safety Research, the Commercial Vehicle Licensing Board and the police on Wednesday.
"Just this morning alone, we issued 277 summonses against motorcyclists, 214 of whom had no road tax.
“Based on these findings and the fact that motorcyclists form the biggest group of road deaths, we have decided to target them in our next enforcement exercise,” he said, adding that the current operation - Ops Bersih III - would last until Dec 4.
Salim said that during the operation targeting express buses between Aug 22 and Oct 6, RTD officers had managed to check 952 buses at the country’s 33 terminals.
“Our undercover officers also reported 3,385 cases of drivers flouting various offences during this period,” he said.
Kota Tinggi flooded again
5 November 2007, By The Star
KOTA TINGGI: Almost 800 people were evacuated here when their homes were hit by pre-dawn floods.
The flood victims were better prepared this time, after experiencing one of the worst floods in the country's history last December and in January this year.
Kota Tinggi OCPD Supt Osman Mohamed Sebot said 755 people from 285 families were placed in three evacuation centres Monday as waters rose in Taman Aman, Taman Mawai, Kampung Batu 25, and Kampung Sungai Berangan.
Rescue efforts started as early as 3am, as continuous rain brought water levels up to two metres high.
Kampung Batu 25 resident Jana Mohamad, 45, said she started packing some clothes and moved her other belongings, including electrical items, to higher shelves in the house when she saw the flood waters rising.
"We know what to do now, and this time the flood waters were not as high as last time," she said.
But as she was leaving her house, Jana said she was swept by strong currents and had to cling to the fence before she managed to swim to higher grounds.
Her neighbour, Zainani Zakaria, 39, said although they had experienced worse floods, she and her family were nonetheless worried.
"We did not dare sleep. We were all scared. How are we to know how high the waters will rise?" she said.
Bar concerned over no-fault liability scheme
4 November 2007, By The Star
KUALA LUMPUR: The Bar Council has expressed its concern over the no-fault liability scheme proposed by the Attorney-General to replace the current mode of compensation and claims over road accidents.
Its chairman Ambiga Sreenevasan said that while she welcomed Tan Sri Abdul Gani Patail's initiative that had the best interest of road accident victims and their families in mind, the Bar noted that there had not been any in-depth study on the scheme's viability and relevance in Malaysia.
In a statement yesterday, she said victims of road accidents would now include “the reckless, selfish and dangerous drivers, the speed demons, the drunkards and the Mat Rempit” as there was no concept of “fault” in the scheme.
“The deterrent element currently in-built in the present system will be demolished,” she said, adding that statistics gleaned from other jurisdictions with such a scheme showed the rate of accidents increased on its introduction.
Ambiga said the scheme would also lead to a limit of the current categories of compensation that could be claimed by accident victims, resulting in the innocent or “blameless victims” being worse off compared to the current system.
She said motor insurance premiums were likely to increase with the introduction of the scheme, which would further burden the majority of Malaysians.
To address these issues, Ambiga said the Bar had presented a detailed memorandum to Abdul Gani that provides for an alternative mechanism.
Spearheaded by the Kuala Lumpur Bar Committee with the judiciary, she said this initiative to revamp the current system should be given a chance to prove its worth.
JPJ Warning To 8,000 Motorists Ahead Of Operation
1 November 2007, By BERNAMA
SHAH ALAM -- The Road Transport Department (JPJ) said tonight it would look out for more than 8,000 motorists notified to surrender their driving licence during an upcoming operation against traffic offenders.
JPJ deputy director-general Datuk Solah Mat Hassan said Ops Bersih III from Nov 5 to Dec 4 would trace these motorists -- 7,972 of them holding the permanent driving licence and 305 others the provisional licence -- who had chalked up the maximum 15 and 10 points respectively under the demerit system for committing traffic offences.
He told a news conference that these people should not be on the road and advised them to surrender their licence or they would face problems when detained during the operation.
"Those who fail to surrender the licence after having received the notification to do so can be fined RM300 for the offence," he said.
Solah also said that the traffic operation would involve checking on the tyres and brakes of buses at 36 major bus terminals in the country as well as on the drivers to determine whether they had chalked up the maximum demerit points.
Traffic Chief Happy With 'Ops Sikap XIII'
29 October 2007, By BERNAMA
KUALA LUMPUR -- These days, federal traffic police chief SAC II Hamza Taib has many reasons to smile.
For one, the nationwide traffic police operation, 'Ops Sikap XIII' which ended on Oct 21, recorded a 4.7 per cent drop in fatal accidents during the Hari Raya festive season.
It is a welcome sign, compared with the statistics recorded in Ops Sikap XI for Hari Raya last year.
"Dedicated and intensive enforcement measures taken by traffic policemen nationwide have contributed to the drop in fatalities on our roads.
"This means that we have achieved our objective for this year, reducing accidents and ensuring smooth traffic flow on the highways and roads," Hamza told Bernama in an interview recently.
Another reason the nation's top traffic police chief is elated is the personal commendation he received from Transport Minister Datuk Seri Chan Kong Choy over the reduction in road fatalities and accidents.
"The minister told me that he was happy that the police managed to reduce the fatalities in Ops Sikap XIII.
"During the Hari Raya festive season last year, Ops Sikap XI recorded 213 fatal accidents. This year, we managed to bring it down to 203 -- a drop by 10 cases," he said.
However, the fatalities could have been much lower had motorcyclists been more reponsible and patient on the roads, he said.
He said that although there was a 20.4 per cent drop in deaths involving motorcycles to 121 cases, from 152 last year, they still accounted for the highest fatalities under Ops Sikap XIII.
Thus, he would make reducing fatalities involving motorcyclists his priority as the traffic chief, he added.
Hamza said about 5,190 traffic policemen were deployed nationwide in Ops Sikap XIII which was held from Oct 7 to 21.
Implement National Health Insurance Carefully, Says Chua
25 October 2007, By BERNAMA
KUALA LUMPUR -- The National Health Insurance Scheme, as proposed in the Ninth Malaysia Plan, has to be implemented carefully to ensure it is accepted by people at all levels of society, Health Minister Datuk Seri Dr Chua Soi Lek told the Dewan Rakyat Thursday.
He said while the scheme was proposed with a noble intention to offset the high medical cost borne by the government and the people, the ministry was aware of the implications and obstacles from financing of the scheme.
"Planning for the scheme will take into account studies commissioned by the government, inputs and feedback from various parties, including from the public and private sectors and non-governmental organisations.
"The government is also studying various models, including experiences of foreign countries," he said in his written reply to Datuk Suhaili Abdul Rahman (BN-Labuan).
The scheme, whose implementation mechanism and date have not been finalised, would provide the people better access to medical treatment and help check spiralling medical costs, he said.
"The scheme will also provide more flexibility and freedom in opting for the preferred healthcare either in the public or private sector," he said.
While the national insurance scheme was compulsory for all Malaysian citizens and permanent residents, the people would not be prevented from buying private health, accident or life insurance, he said.
The government would ensure nobody was deprived access to quality, efficient and comprehensive healthcare, he added.
Strict enforcement pays off, fewer deaths this time
23 October 2007, By New Straits Times
KUALA LUMPUR: The stringent enforcement following the death of 22 express bus passengers two months ago has paid off. Ops Sikap XIII, which ended on Sunday, had recorded fewer deaths. But the most surprising fact was that none involved passengers of express buses.
Despite an additional 1,900 express and stage buses on the roads during the festive season, there were no accidents involving buses.
Last year, during the same festive season, there were about four such accidents and most were caused by reckless drivers.
"This shows that enforcement, if carried out diligently, works," said Road Safety Department director-general Datuk Suret Singh.
He said several measures were put into place after the bus crash in Bukit Gantang in August, which yielded results. He urged the authorities not to take the foot off the pedal.
"We had poorly maintained buses replaced and errant drivers removed. Stringent checks were carried out before a bus began its journey."
One problem the authorities faced was trying to stop passengers from buying tickets from touts.
Illegal buses were stopped and taken to the nearest towns where the passengers were ordered to buy tickets from licensed operators.
Undercover policemen were also placed on buses to monitor the drivers. The officers issued 363 summonses to bus drivers for breaking various traffic rules.
"All these measures have paid off. Checks will continue at 33 bus terminals nationwide."
Malaysia Institute Road Safety Research director-general Prof Radin Umar Radin Sohadi said the operation had reduced fatalities despite heavier traffic volume.
Ops Sikap XIII recorded 225 fatalities -- 121 were motorcyclists and pillion riders, 54 were car drivers and passengers and the third-highest was pedestrians who made up 23 fatalities.
The number of fatalities during the operation last year was 228. The number of accidents, however, went up by 195, from 15,716 to 15,911.
224 Killed During 13th Ops Sikap
22 October 2007, By BERNAMA
KUALA LUMPUR -- A total of 224 people were killed in road accidents during the 15-day Ops Sikap 13 which ended yesterday.
Sixteen people died on the last day of the operation launched on Oct 7 to reduce road accidents and deaths during the Aidilfitri celebration.
Eleven of the dead were motorcyclists and pillion riders, four car drivers and a pedestrian, Bukit Aman traffic police chief SAC II Hamza Taib said in a statement Monday.
Of the 854 accidents reported, 308 occurred on town roads, federal roads (230), state roads (164), highways (107) and other roads (45).
A total of 9,255 summonses were issued to errant road users yesterday.
Don't Allow Dangerous Drivers On The Road, Says Chan
21 October 2007, By BERNAMA
PENANG -- The Road Transport Department has been asked to take immediate action against drivers who have picked up the maximum points under the demerit penalty system, as they pose a danger to other road users.
Transport Minister Datuk Seri Chan Kong Choy said the department should cooperate with the police to go after drivers who had collected a high number of points but refused to pay their outstanding summonses or surrender to the authorities.
"Keep these dangerous drivers off the road," he told reporters after chairing the Penang MCA liaison committee meeting here today.
RTD director-general Datuk Ahmad Mustapha Abdul Rashid was reported to have said on Friday that warrants of arrest would be issued against 21,000 drivers who had collected maximum points under the demerit system but refused to pay the summonses issued to them.
11 Die On Day 14 Of Ops Sikap XIII, Death Toll Climbs To 209
21 October 2007, By BERNAMA
KUALA LUMPUR -- Eleven people died in road accidents yesterday, bringing to 209 the total number of fatalities since Ops Sikap XIII was launched early this month.
Six of the dead were motorcyclists and pillion riders, four car drivers and a lorry driver, Bukit Aman traffic police said in a statement.
Of the 890 accidents reported, 341 occurred on town roads, federal roads (240), state roads (172), highways (92) and other roads (45), it said.
A total of 8,940 summonses were issued to errant motorists during the 14 days the traffic operations were carried out nationwide, it said.
Ops Sikap XIII, launched on Oct 7 to reduce road accidents and deaths during Aidilfitri celebrations, ends today, it added.
20 Deaths On First Day Of `Ops Sikap 13'
8 October 2007, By BERNAMA
KUALA LUMPUR -- The first day of the launching of `Ops Sikap 13' Sunday recorded 20 deaths from 15 fatal accidents throughout the country.
Federal Traffic Police Chief, SAC II Hamza Taib said although the number of fatalities on the first day of the operation was higher compared to the 18 deaths on the first day of Ops Sikap 11 during the Aidilfitri festive season last year, the total number of road accidents had actually dropped by 106 cases.
"On the first day of Ops Sikap 11, there were 1,042 road mishaps reported nationwide with 16 fatal accidents. During the operation this time around, there were only 936 accidents on the first day with 15 fatal accidents.
"Although the number of fatalities had risen, I am satisfied that the operation this time showed effectiveness as there was a reduction in the total number of accidents, including fatal cases," he said when contacted by Bernama, here today.
Hamza said the comparison was made against Ops Sikap 11 as it was launched in conjunction with the Aidilfitri festive season whereas Ops Sikap 12 was launched in conjunction with the Chinese New Year.
Hamza said that out of the 20 deaths in the operation this time, motorcyclists continued to record the highest number with seven deaths, followed by passengers of multi-purpose vehicles (MPV) (4), pedestrians (3), car passengers (2), car drivers (2), drivers of other vehicles (1) and MPV drivers (1).
Meanwhile, urban roads recorded the highest number of accidents with 415 cases followed by Federal roads (248), state roads (151), highways (86) and other roads (36).
Joint Database For All Road Enforcement Agencies
18 September 2007, By BERNAMA
KUALA LUMPUR -- A joint database system for all road enforcement agencies will be set up to enable each agency to access information on a particular driver and vehicle more easily and effectively.
Inspector-General of Police Tan Sri Musa Hassan said hopefully the implementation of the single system would be able to coordinate and improve the quality of the existing database which was considered ineffective.
"In the past, if the Road Transport Department (JPJ) wished to seek information on a particular vehicle, they would have to contact the police for such information.
"This method was time consuming and sometimes the information needed could not be obtained at the time it was required because of certain flaws in the system," he told reporters after appearing on the live TV programme "Issue Semasa" on RTM1 tonight.
He said each enforcement agency, whether the JPJ, Commercial Vehicle Licensing Board or police would be able to access the new system directly without having to contact the other agencies beforehand to obtain the required information.
Musa said the new system would also be linked to the National Registration Department (NRD) to facilitate the authorities in obtaining the latest address of a particular driver or vehicle owner who had committed a traffic offence.
"Previously, many problems were encountered when a particular driver could not be traced because of a change in the home address. If there is a link with the NRD it will be easier because the information on the person concerned would be more up to date.
Major Bus Builders Comply With International Standard: RTD
18 September 2007, By BERNAMA
PUTRAJAYA -- Major bus builders in the country have complied with the ECE R66 European Union international standard in manufacturing their buses since 2004.
Road Transport Department (RTD) Technical Director Zahamail Omar (repeat Zahamail Omar) said this is largely due to the fact that these bus builders used the Australian Design Rule (ADR) standard, which already incorporated the ECE R66 when constructing their buses for the export market.
"The problem now is with the small bus manufacturers. They do not understand the need to follow the regulation and are opposing it," he told Bernama here today.
The ECE R66 is an international standard that require solid roofing on buses so that they will stay in one piece should they be involved in roll-over accidents, affording survival space for passengers.
Zahamail said in order to obtain the approval, the super-structure of the vehicle should be of sufficient strength to withstand the roll-over accident and simulations or crash tests had to be done before the design could be approved for construction.
However, he said since such tests with real vehicle structures are costly, most of the companies would used simulations, based on the calculation of laden weight, chassis and dynamics of the materials used.
"The design must be certified by a design engineer and then submitted to RTD for approval. Once approved, the builders can start constructing the bus, with the process being supervised by an engineer," he said.
He said this was conveyed to 48 bus manufacturers in a letter dated Aug 21 by the RTD and followed up with a meeting chaired by him on Aug 29, which was attended by 55 people representing bus manufacturers and companies.
Zahamail said the bus manufacturers can overcome this requirement by asking their chassis suppliers to supply them with the required roofing design and build according to it.
He said most of the chassis suppliers -- Scania, Nissan, Volvo, Mercedes, MAN and Mitsubishi have ECE R66 compliance designs but the builders are reluctant to use them because of their high cost.
"That is why previously, most of the suppliers were only keen to provide the manufacturers with the chassis but without the roof design. With the introduction of this new regulation, we hope the situation will change," he said.
Citing Spain as an example, Zahamail said after the ECE R66 standard was adopted, crash fatalities reduced significantly in that country.
Malaysia adopted the ECE R66 standard after 23 people died in an express bus accident near Bukit Gantang on Aug 13, as part of the Ministry of Transport's new preventive measures to avoid high fatalities in similar incidents.
However, a month after the accident and the ministry's announcement, the bus manufacturers claimed that they are still waiting for the guidelines of the new bus roof structure.
Some complained that business was affected badly as they could not construct any new buses after that accident because they are unsure of the standard required by the government.
CVLB to issue 1,000 express bus permits
18 September 2007, By The Star
KUALA LUMPUR: The Commercial Vehicle Licensing Board will issue up to 1,000 temporary permits to increase the number of express buses in view of the balik kampung rush during Hari Raya next month.
The board's chairman Datuk Markiman Kobiran said the number of permits available this year was about 300 more than last year due to the concern that some drivers might stay away because of enforcement operations.
“However, we do not forecast any shortage of drivers. If they (company) are to apply for the permit, the bus has to come with a driver,” he said.
Markiman said the permits would be issued based on demand to allow factory buses or school buses to be used as express buses, adding that school buses that were less than 10 years old would be allowed to make trips of over 300km.
However, passengers would have to pay an additional RM3 over the normal express bus ticket.
Car theft syndicate smashed in Johor
18 September 2007, By The Star
JOHOR BARU: Police believe they have smashed a car theft syndicate specialising in Proton Wajas following the arrest of six men.
A task force comprising officers from Nusa Jaya and Johor Baru (north) districts had been monitoring the syndicate members over sometime before closing in on them.
On Sept 10, the task force detained two men putting false number plates on a Proton Waja in Taman Nusajaya Emas.
Mobile phones, a metal file, screwdrivers and a set of modified keys from seized from the men.
Later in the day, the team arrested another two suspects in Taman Ungku Tun Aminah and recovered another Proton Waja. The next day, two more men were arrested.
Johor police chief Deputy Comm Datuk Hussin Ismail said altogether, police recovered seven Proton Wajas in Nusa Jaya and Skudai areas.
On another matter, police completed investigations into SMS rumours about racial riots in the state.
“We have handed over the papers to the Attorney-General,” he said.
Five people were arrested under the Internal Security Act in connection with the case, but have since been released.
Flood Victims Lose Several Million Ringgit
17 September 2007, By BERNAMA
NIBONG TEBAL -- Residents in several villages and housing estates in Seberang Perai Tengah (SPT) and Seberang Perai Selatan (SPS) lost several million ringgit worth of property, livestock and plants in the flood recently.
Many of them, especially those living in Kampung Manggis in SPT and Kampung Baru, Tanjung Ketupat in Simpang Ampat and Kampung Lapan and Taman Indera Timbalan in Kepala Gajah, SPS, experienced floods three times in recent months.
Batu Kawan Member of Parliament Huan Cheng Guan said the residents complained that they lost considerable property, especially livestock and plants in the floods.
Speaking to reporters after inspecting the collapsed embankment at Kepala Gajah due to the recent flood, he said several hectares under rubber, oil palm and pineapple were destroyed while freshwater fish and prawns rearers lost their harvests. He estimated the losses at more than RM2 million.
Rubber and oil palm smallholder Jariah Awang, 65, lamented that the the floods had robbed her of an income. "I used to earn about RM100 a day from rubber but none now," she said.
Her 3.6-hectare holding is close to the collapsed embankment and since the flooding incident on July 23, 30 of her rubber trees, 30 durian trees and 25 rambutan trees had been destroyed by flood waters.
Thousands of factory workers and traders have also been affected by the floods and a survey is being conducted to determine the actual number affected so that aid can be given out to them.
Huan said aid had also been requested from the National Disaster Fund through the National Security Council deputy chairman Datuk Seri Mohamed Nazri Abdul Aziz.
10.7p.c. of projects under 9MP have been completed
12 September 2007, By The Star
KUALA LUMPUR: A total of 10.7% or 3,207 projects lined up under the Ninth Malaysia Plan (9MP) have been completed as of Aug 31, said the Prime Minister.
In his written reply to Lim Hock Seng (DAP - Bagan) in Parliament, Datuk Seri Abdullah Ahmad Badawi said a total of 29,947 projects had been approved thus far under the 9MP.
He said 28.3% of the figure or 8,467 projects were currently being implemented at various stages.
The remaining 61% or 18,273 projects were yet to be implemented including projects in the planning stage such as identification of locations, design and project summary, he added.
"The implementation of the 9MP development projects is monitored through the Project II Monitoring System (SPP II)," he said.
Abdullah said the list of projects according to the state, district, parliament constituency or state assembly could be obtained from the Federal Development Department or the State Development office based on the specific needs.
Motorcycle, snatch-theft gang busted
11 September 2007, By New Straits Times
KUALA LUMPUR: Police have crippled a motorcycle-and-snatch-theft gang with the arrest of 10 of its members over the weekend. They believe at least 13 cases of motorcycle and snatch thefts in Sentul have been solved with the arrest.
Police got their break when they arrested a 21-year-old at Taman Tasik Titiwangsa on Friday.
Sentul police chief Assistant Commissioner K. Kumaran said nine men, aged between 18 and 29, were arrested at a rented house in Seksyen 27, Shah Alam on Saturday morning in a follow-up operation.
At the house, police found four motorcycles believed to be stolen, motorcycle parts and tools used for robbery.
Kumaran said investigations showed the group had been active in the Klang Valley for the past two months.
The stolen motorcycles were cannibalised for parts and sold to unsuspecting customers.
Kumaran said the gang members would pose as policemen when robbing their victims.
He said police has launched a manhunt for the gang’s leader and other members of the gang.
Malaysia free from bird flu
11 September 2007, By New Straits Times
PUTRAJAYA: Malaysia has been declared free from bird flu after passing the requisite three-month period without any new outbreak since the last epidemic began in June. Veterinary authorities have spent the last three months conducting surveillance on fowl in and around Kampung Paya Jaras Hilir in Sungai Buloh, Selangor, where there was an outbreak on June 5.
A total of 4,266 free-range chickens, ducks and other fowl were culled within five days from the outbreak, costing the government nearly RM40,000 in compensation to their owners.
Coops were destroyed and premises within the infected zone were disinfected.
Two rounds of surveillance were conducted up to a 10km radius from the infection zone, during which swab samples were taken from more birds.
Over the three months, 24,246 swab samples were taken from various fowl within the affected area and also nationwide to check if the H5N1 virus had spread. Test results for the virus have been negative.
"We are now free of avian influenza as we have successfully conducted the stamping-out policy to ensure there is no spread of the virus, and have followed all measures in accordance with guidelines by the World Organisation for Animal Health (OIE)," Agriculture and Agro-based Industry Minister Tan Sri Muhyiddin Yassin said yesterday.
Also present at the press conference was Veterinary Services Department director-general Datuk Dr Abdul Aziz Jamaluddin.
The ministry’s final report to the OIE was submitted on Sunday, in which it was confirmed to the world body that Malaysia was free of the virus.
Muhyiddin added that the OIE and the World Health Organisation had praised Malaysia for its handling of the bird flu outbreaks.
He hoped that with the declaration, countries which had stopped importing poultry from Malaysia would resume their imports.
Muhyiddin lamented that state governments were slow in gazetting state enactments on rearing of free-range chickens.
The ministry had given each state a draft legislation on this matter for their adoption, but to date none had enforced the rules, which carry penalties for rearing chickens in urban areas and for allowing chickens to roam free.
"Perhaps the states do not see this as important but we can’t afford to have a lackadaisical attitude," he said.
Malaysia has successfully fought three avian flu outbreaks since 2004, spending RM10 million in compensation for culled birds.
Muhyiddin also said that Malaysia must continue to be vigilant as avian flu was still prevalent in several neighbouring countries.
All Asean countries, with the exception of Singapore, the Philippines, Brunei, and now Malaysia, still had bird flu.
Poorer Asean members lacked the resources to conduct comprehensive stamping-out programmes which involved culling of fowl, compensation for breeders and owners, and surveillance checks.
Major health screening for commercial vehicle drivers
11 September 2007, By The Star
PUTRAJAYA: Commercial vehicle drivers will be tested for drugs under a medical check-up scheme when they renew or apply for new licences.
The new scheme, which will come into effect on Oct 1, will also see them being checked for other problems like alcoholism, drug addiction and cardiovascular and mental illnesses.
The move by the Road Transport Department (JPJ) is expected to affect more than 500,000 public service vehicle (PSV) licence, goods driving licence (GDL) and conductor licence (KON) holders.
JPJ deputy director-general Solah Mat Hassan said the scheme, called eKesihatan, aims to ensure that only medically-fit drivers are behind the wheel of commercial vehicles.
“The medical test that they have to go through is very comprehensive and from Oct 1, all drivers will be subjected to urine tests for drug abuse,” he told a press conference at the department headquarters here yesterday.
He said that under the scheme, the results would be electronically transmitted to JPJ via a government-appointed gateway provider, Supremme System Sdn Bhd, while payments and registration for the tests would have to be done at post offices before a driver proceeded to the appointed panel clinic.
“It ensures that the verification of the health status of the licence holders is not only based on the report of the medical practitioner but also on the report of a laboratory test by a third party.
“This will create a situation which is fair, and with checks and balance,” he said.
Supremme System would also be maintaining an up-to-date database of the health status of all commercial vehicle licence holders for the department.
Solah said 611 panel clinics nationwide had been appointed under the new programme.
Those applying or renewing their goods driving, passenger service vehicle and conductors licences have to pay RM80 for the test.
Previously they paid RM50 for new applications and RM10 for renewals.
Asked about the increase, Solah said the tests were more comprehensive and even those who wanted to renew their vocational licences had to undergo the same type of medical tests.
“The new medical screening will also test for designer drug abuse by drivers and conductors,” he said.
He said the Cabinet had approved the implementation of eKesihatan to improve the delivery system and protect the integrity of the screening process.
Supremme executive director Datuk Kamaludin Yusoff, who was also present at the press conference, said those who failed the tests could reapply using the same process if they felt that their health condition had improved.
Banking scheme to cultivate talent
6 September 2007, By The Star
KUALA LUMPUR: Bank Negara, together with financial services industry players, has initiated a programme to address the shortage of skilled talents in the industry.
The one-year Financial Sector Talent Enrichment Programme (FSTEP), which commences in November, was expected to produce 1,000 highly trained industry professionals, said governor Tan Sri Dr Zeti Akhtar Aziz.
The shortage of talent in the financial services industry is not unique to Malaysia as other countries are also facing the same problem.
“The areas (of shortage) are extensive ranging from entry level, those with five to seven years of experience to senior management,” Zeti said at a briefing yesterday.
Bank Negara deputy governor Datuk Mohd Razif Abdul Kadir (left) and governor Tan Sri Dr Zeti Akhtar Aziz (second from left) briefing reporters on the Financial Sector Talent Enrichment Programme in Kuala Lumpur on Wednesday.
FSTEP aims to attract high calibre graduates from local and foreign institutions of higher learning to join the financial services industry - banks, insurance, Islamic banks and takaful.
“Graduates in related business disciplines or other non-business disciplines are encouraged to apply. The programme is also open to those who are currently working in the non-financial sector and interested to pursue careers in the financial services industry,” Zeti added.
Supported by the financial services industry through the Industry Staff Training Fund, which currently has about RM110mil, FSTEP provides a one-year intensive technical training in banking and insurance, including Islamic finance and takaful.
Its orientation will focus on practical and operational aspects of the industry.
Training also includes simulations, workshops, case studies and on-the-job training through internships with the financial institutions.
Zeti said participants would receive a scholarship of RM2,200 per month as well as basic medical and insurance coverage.
“Those who successfully complete the programme will be absorbed into the financial services sector,” she said, adding that the programme would be reviewed to determine its success.
On the effect of the weak export numbers in July and the US subprime mortgage problems on the country's economy, Zeti felt it was premature to make a conclusive assessment on the extent of the spillover of the developments in the US.
“It remains to be seen what kind of policy or response needs to be taken to address it. Until then, we need to monitor very closely all the developments in the US and other parts of the world.
“I want to emphasise that compared with previously, the impact will be less pronounced because we are a more diversified economy and more importantly, we have a stronger domestic economy,” she added.
Programme to boost financial talent pool
6 September 2007, By Business Times
BANK Negara Malaysia is spearheading a specialised financial training programme, which it hopes will address the acute shortage of skilled talent in the financial industry.
Governor Tan Sri Dr Zeti Akhtar Aziz hopes the one-year Financial Sector Talent Enrichment Programme (FSTEP) will be able to produce 1,000 highly trained industry professionals by November next year.
"It is a practical-oriented programme aimed at attracting high-calibre students who have recently graduated from local and foreign institutions to join the financial industry - banks, insurance, Islamic banks and takaful," she said in Kuala Lumpur yesterday.
The programme, which will begin next month, is being organised with the various players in the industry.
They are the Association of Banks in Malaysia, Malaysian Investment Banks Association, Association of Islamic Banking Institutions Malaysia, Life Insurance Association of Malaysia, General Insurance Association of Malaysia, Malaysian Takaful Association, Institute of Bankers Malaysia, Islamic Banking and Finance Institute Malaysia and the Malaysian Insurance Institute.
It is also open to those currently working outside the financial sector but are interested to pursue careers in the financial industry.
Funded by the financial services industry, this programme provides intensive technical training and the training module includes simulations, workshops and case studies as well as on-the-job training through internships.
Participants, who will receive an RM2,200 per month scholarship with basic medical and insurance coverage, will be absorbed into the sector.
Zeti said the programme will also source funding from the RM110 million Financial Staff Training Fund, set up by the banking sector to address staff-pinching.
Some of the resource persons providing training may be sourced from overseas and outside the financial services industry, she added.
Zeti said the next round of training will be aimed at those with five to seven years' experience to ensure high-calibre officers with strong levels of talent.
The central bank also wants to ensure salary increases in the industry commensurate with the capacity and calibre of the individual concerned.
More information on the programme can be obtained from the central bank's website at www.bnm.gov.my.
PIAM Eyes Separate Tax Relief On EPF Contribution, Insurance Premium
5 September 2007, By BERNAMA
KUALA LUMPUR -- General Insurance Association of Malaysia (PIAM) hopes that a separate tax relief on contributions to Employees' Provident Fund (EPF) be allowed for insurance premiums paid, particularly for personal insurance protection such as life, education and medical and health policies.
In a statement here today, PIAM expected its wish list for Budget 2008 would further encourage the take-up of these types of policies which would benefit the people in the long run.
PIAM said its other wish list was for a further refinement of issues relating to National Automotive Policy.
"The implementation will help rationalise and consolidate the motor vehicle sector, while enhancing the vehicle sales volume over longer term.
"This will in turn fuel growth in all sectors of the motor trade including the motor insurance sector," it said.
On the proposed implementation of the goods and services tax, PIAM hoped that ample time be given to all sectors to prepare to cope with the new taxation system, while making adjustments to current income tax rates in the coming budget.
PIAM expected the general insurance industry to record steady growth in 2008 in tandem with the favourable 5.7 percent gross domestic product growth in the second quarter of 2007, the anticipated strengthening in private consumption and investment spending, plus projects implementation under the Ninth Malaysia Plan.
End of road for car-jackers
31 August 2007, By New Straits Times
KUALA LUMPUR: They would tail the targeted car before rear-ending it, hijacking the car by forcing the victim at parang point.
The ruthless men would also ambush victims opening their house gates before robbing them and making off with their cars.
However, the crime spree of the 11 members of the notorious "Saravanan" gang were brought to an end recently when they were arrested by the city police.
City CID chief SAC II Ku Chin Wah said that with the arrests, police were confident they had solved about 25 cases of car hijacking in the city, Selangor, Malacca, Negri Sembilan and Johor.
"All the suspects, aged between 22 and 40 years, were picked up in several places in Selangor and Johor from Aug 12.
"One of the earliest arrests was of the 33-year-old mastermind, who was arrested at his house in Damansara on Aug 12," he said here yesterday.
The mastermind was wanted for three vehicle theft cases in Malacca, Perak and Negri Sembilan.
Several members of the gang were also believed to have been involved in a case in Johor early this year where a woman was raped after her car was hijacked.
Police seized 36 cars including BMW, Toyota Avanza, Harrier, Honda CRV and Accord, as well as local cars like the Proton Wira, Waja and Perdana from the suspects.
Also seized were a lorry and a motorcycle.
Their total value is estimated at RM1 million.
Police also recovered several sets of keys, parang, hammers, ski masks and gloves from the suspects.
Ku said after the cars were stolen, they were taken to a workshop in Johor to be repainted and have their chassis and engine numbers changed.
The owner of the workshop was also among the men detained.
"We have identified two more gangs which had links with the Saravanan gang and are closing in on them," said Ku.
Initial investigations revealed that some of the stolen cars had been resold to unsuspecting customers and police were trying to track them down.
No-fault liability scheme for motor vehicle accidents: Good news for consumers, but not lawyers
27 August 2007, By New Straits Times
KUALA LUMPUR: Consumer groups and lawyers are at loggerheads over the attorney-general’s proposal for a no-fault liability scheme for motor vehicle accidents. Consumerists were delighted with Tan Sri Abdul Gani Patail’s proposal, as reported in yesterday’s NST, saying the move would benefit the people.
National Consumer Complaints Centre director Darshan Singh said the government should implement it as soon as possible.
"With the current system, it takes years for accident victims to be compensated and when they finally are, there will be heavy contingency fees charged by lawyers on top of the percentage of the award," he said.
"People are being shortchanged by lawyers and this scheme will put an end to that."
Darshan said insurance companies would also benefit as lawyers’ fees would no longer be a consideration since the scheme provided for minimal legal representation.
National Institute of Occupational Safety and Health chairman Tan Sri Lee Lam Thye, an advocate of the scheme, called for a body or mechanism to be put in place to make sure there was no abuse.
"The A-G’s Chambers must introduce a regulatory body to look into fraudulent claims and to determine what would be a fair amount to be given in compensation."
Lawyers claim that it would rob them of their livelihood.
Bar Council Malaysia president Ambiga Sreenevasan said she would understand if lawyers were unhappy because a large number of them would be put out of work.
She urged the A-G’s Chambers to consult with them before implementing the scheme, saying there were questions about the scheme, such as capping the kind and size of claims.
"If implemented wrongly, the scheme could indirectly contribute to drivers being less careful as the potential for liability is taken away."
Jagdiv Singh Sandu, a lawyer for 35 years, did not think the no-fault liability scheme would work.
He claimed that it would take nearly a year for a comprehensive medical report to detect long-term damage to a person in an accident, thereby making it impossible to award damages immediately.
He said the Subordinate Court Rules Act 1955 provided for interim payment, but was hardly used by judges.
"Instead of the scheme, there should just be a modification of rules and procedures for accident cases.
"Now, defence lawyers use the rules of evidence to create delays and to force claimants to accept much less than what is due."
No-Fault Liability scheme: How our current system works
26 August 2007, By New Straits Times
THE No-Fault system is a safety net that catches all persons who are injured in an accident, regardless of their guilt or innocence. Whether a person contributed the least to the accident, or was the main cause, that person would be awarded damages that go towards paying medical and hospital fees, repairing the vehicle, making up for lost income, or, in the instance of death, to pay for funeral costs and the welfare of loved ones left behind.
In this system, no person is abandoned by society.
However, in the fault-based system that is practised in Malaysia today, it is only the "innocent" injured person who gets compensation.
This is because innocent victims are covered by third-party insurance from which the victim is entitled to compensation.
The "not so innocent" person — the one responsible for causing the accident — does not get anything, even though he, too, might have been injured in the accident.
Unless that person has personal accident insurance, the "guilty" person has no safety net.
If the guilty party is the breadwinner and dies without insurance, his dependants have lost their source of financial stability as well.
However, even though under the current system things seem weighted towards the innocent party, it is not so easy to claim compensation.
The "victim" has to go to court and prove several things first before he can be awarded damages:
* his innocence — that he did not contribute to the accident,
* the guilt of the other party, and,
* that the guilty party was negligent in his conduct and did not exercise reasonable care.
But the road from the accident to the awarding of damages can be extremely long and tedious.
If the accident was serious, the case becomes a criminal matter.
The driver of the offending vehicle would be advised by his lawyer to plead not guilty.
The case, thus, goes to court.
Criminal trials can take several years. The innocent party must wait because the result of the criminal trial will determine the bargaining power of each side.
The innocent party will then hire a lawyer to take a civil suit against the guilty party.
The lawyer for the innocent man and the lawyer for the guilty man exchange many letters.
A doctor spends time looking at the injuries to ascertain the damage, and to determine what is needed to "repair" the injury.
Both parties wait a few years before their case can be heard in court.
The judge then decides and makes an award.
Often, the damages awarded is less than what was demanded.
If either party is not happy with the decision or the award, the matter is appealed.
And this then adds a few more years to the matter.
By the time the "victim" finally gets his compensation, it is many many years later and a large percentage will go towards paying the lawyer.
In the meantime, the injured person still has to pay his hospital bills. And, if he was unable to work as a result of his injury, he has no income and is unable to support himself or his family.
In our current fault-based system, compensation will not be given to the victim if he cannot prove that the injury was caused by the defendant’s failure to take reasonable care.
And negligence must be "reasonably foreseeable".
As this is often so difficult to prove, at the end of the day, the majority of motor vehicle accident victims receive no compensation at all. And they have no other net to fall back on.
Attorney-General wants to introduce a No-Fault Liability scheme for motor vehicle accidents
26 August 2007, By New Straits Times
PUTRAJAYA: People who are injured in road accidents may no longer have to worry about how to pay for their medical treatment. This is because the Attorney-General wants to introduce a no-fault payment scheme for those involved in motor-vehicle accidents.
Under the proposed scheme, injured persons can expect prompt benefits, regardless of who caused the accident, without having to go to court.
Initial minimum payments, which will assist the injured person in the immediate aftermath of the accident, could be paid within a week of the claim being filed.
All a victim has to do is to submit two reports, a police accident report and a medical report, to receive compensation.
Although the source of the funding has yet to be determined, Attorney-General Tan Sri Abdul Gani Patail said it is likely to come from motor vehicle insurance companies — from premiums paid by vehicle owners.
"The objective of this new scheme is to reduce the burden on the people," Gani said.
Instead of paying for third-party insurance (which only covers the person you knock down), vehicle owners are expected to get comprehensive insurance (which covers everyone, including the vehicle owner).
The scheme will apply to any accident in Malaysia involving motor vehicles registered in Malaysia.
"Many people come up to me to tell me that they are not obtaining justice fast enough," said Gani.
"A few years ago, an old man told me that it took him several years to get his claim in court. At the end of the day, he got only a fraction of what he was entitled to.
"What was of most concern to me was that he didn’t get the compensation at the time when he needed it the most — at the time of recovery, soon after the accident."
Currently, under the fault-based system, a person has to wade through years of legal administration before he is awarded compensation.
In the fault-based system, if no fault can be established, then an innocent accident victim would be without remedy.
The prompt payment of benefits is expected to a "fair and expeditious relief" to the injured person during the period of incapacity, so that he may maintain a reasonable standard of living.
Benefits will include property damage, pain and suffering for injuries sustained, medical expenses, loss of earnings and, in the instance of death, funeral expenses and compensation for dependants.
However, the scheme will not be applicable to accidents caused by uninsured vehicles, or people who are "repugnant to justice", such as a driver driving under the influence of alcohol, or criminals who get injured while trying to escape from the law.
The scheme will do away with the fault-based liability system currently in force, removing the option for civil action. This will be enforced by legislation.
If there is any dissatisfaction as to the quantum, the party cannot go to court, but instead has to go through mediation.
"The quantum will probably be less than what you would get at the courts, but if you factor in what it would cost to have to go to court, pay the lawyer, wait several years, this way is more beneficial to the injured party in the end," said Gani.
Insurance premiums are also expected to go down since insurance companies would not need to spend money on legal or administrative fees in going to court because there is no need to prove fault.
"The No-Fault Liability (NFL) scheme will alleviate a lot of the backlog of cases in the courts, because it will free them to attend to other matters," said Gani.
As at July 1, last year, there were 11,890 insurance claims pending in the magistrate’s courts, 621 in the High Courts, and 37,248 in the Sessions Courts.
Compensation claims from road accidents ranked the second highest among the total number of civil cases filed.
Gani said preparatory work on the new scheme started early last year and is now moving to the meeting stage with all stakeholders.
"We have to consider what the impact will be on the public, insurance companies, and lawyers.
"We won’t know how this will impact insurance companies until we hear their views."
Discussions will also focus on which body will administer the scheme.
The A-G’s Chambers is also finalising a Preliminary Issues Paper and questionnaire that will be opened to the public to take into account the public’s comments.
The paper is expected to be posted soon on the A-G Chambers website, www.agc.gov.my.
Gani is hoping to set up the scheme as soon as possible. "If it is a good thing, and everyone supports it, then why wait?"
The NFL scheme is currently being practised in various versions in New Zealand, the US and certain parts of Australia, Canada and India.
Vehicle Sales Up 2.6 Percent In July 2007
22 August 2007, By BERNAMA
KUALA LUMPUR -- Vehicle sales rose by 2.6 percent or 1,143 units in July 2007 compared to the previous month with improved consumers' confidence and market sentiments.
The Malaysian Automotive Association (MAA), in releasing the figures today, said higher disposable income lifted by the 7.5 to 35 percent salary increase for civil servants and new model introductions also contributed to improved sales.
According to the association, sales volume in August 2007 is expected to be maintained at the same level as July 2007.
Vehicle sales increased 9.6 percent to 44,926 units in July 2007 compared with 40,990 units in the same month last year, MAA said in its report.
Year-to-date, vehicle sales went down by 9.1 percent to 265,665 units from 292,330 units previously, the association said.
In July 2007, total industry production rose to 40,149 units from 39,535 units in the same period last year, MAA said.
Of these, passenger cars accounted for 36,308 units while 3,841 units were commercial vehicles, it added.
Total production in the first seven months of this year was 22 percent lower at 247,975 units as against 318,179 units in the same period last year, the association said.
Of the number, passenger cars comprised 225,644 units and the remaining 22,331 units were commercial vehicles.
Thailand Hands Over Stolen Vehicles
7 August 2007, By BERNAMA
BUKIT KAYU HITAM -- Thai Customs today handed over five stolen vehicles which were smuggled into the country to the Malaysian government as proof of cooperation between the two countries.
The handing-over was held at the Thai Customs office in Dannok, close to the Malaysia-Thai border.
Malaysia's consul-general in Songkhla Raslan Abdul Rashid, who received the vehicles on behalf of the Malaysian government, then handed them over to Kedah CID chief ACP Ismail Yatim.
The vehicles comprise two Toyota Innova cars, a Toyota Harrier, a Honda CRV and a Nissan Frontier.
Ismail said the vehicles would be kept at the Bukit Kayu Hitam police station pending completion of investigations.
"The handing-over of these vehicles is a follow-up to the ministerial level joint committee meeting in Bangkok on July 28," he added.
He said the vehicles, shipped from Singapore, were impounded by Thai Customs in Thailand on suspicion that they were stolen in Malaysia and then smuggled into Thailand.
Police Cripple Syndicate Specialising In Stealing, Selling Old Vehicles
3 August 2007, By BERNAMA
MELAKA -- Police have crippled a syndicate which specialises in stealing old cars and vans and later selling them off cheaply in Melaka, Kuala Lumpur, Negeri Sembilan and Terengganu.
Bukit Aman CID director Datuk Christopher Wan Soo Kee said nine men, including two ring leaders calling themselves "Hogan", aged 30 and 58 respectively, were nabbed by police in connection with the case.
"Close cooperation between Bukit Aman (Federal police) and with our contingents in Melaka, Terengganu, Kelantan and Negeri Sembilan as well as other departments helped us cripple this syndicate. Investigations are continuing," he told a press conference at the Melaka Police headquarters here Friday.
He said that 45 buyers of the vehicles had also been arrested, of which 13 were from Melaka, 29 from Terengganu and three from Negeri Sembilan while 35 cars and 24 vans worth about RM250,000 were confiscated.
Police also seized 31 genuine vehicle registration numbers and 18 road tax stickers, 13 of which were genuine and the rest fake.
Wan said the chasis numbers of the stolen vehicles were tampered with at a workshop in Sungai Baru, Alor Gajah here, after which the vehicles were sold cheaply between RM3,000 and RM5,000.
"The vehicles were sold to villagers in remote areas and Felda schemes. The 58-year-old syndicate leader had previous records for robbery and extortion," he said.
Wan advised the public to be wary when offered vehicles at very low prices as they could be stolen.
Underrun bars on vehicles to be law
1 January 2000, By New Straits Times
PUTRAJAYA: The law will be amended to require all commercial vehicles to have underrun bars at their rear ends. Had these bars been fixed on the lorry in Tuesday’s accident when an MPV was crushed underneath it, the fate of 11 people who were killed might have been different.
The underrun bars would have prevented the MPV from going underneath the lorry.
Amendments to the Construction and Use Rules 1959, a set of regulations under the Road Transport Act, are being finalised to require all commercial vehicles to install these bars.
Road Transport Department deputy director-general Solah Mat Hassan said currently, only new commercial vehicles must have the bars.
"Since last year, we have imposed this requirement on new commercial vehicles when they send their vehicle plans to us for approval," he told the New Straits Times.
"In the meantime, we began drafting amendments to the rules to make it compulsory for older vehicles as well."
Besides underrun bars, commercial vehicles must also have other safety features including night reflectors.
Solah said most commercial vehicles were registered before last year and, therefore were not required to install underrun bars.
Puspakom will be the enforcing agency for the new requirement.
Commercial vehicles are required by law to undergo inspections at Puspakom every six months.
"For now, we encourage commercial vehicle owners to be proactive. Don’t wait for the amendments to be approved as this involves public safety," Solah said.
In the accident on Tuesday, 11 people died when their MPV crashed into the back of a lorry carrying iron ore on the East Coast Highway.
The MPV was a seven-seater but it was carrying 15.
Transport Minister Datuk Seri Chan Kong Choy had said the government would consider laws to limit the number of passengers in private vehicles.
Copter, radio tracking lead to RM2.3m car loot
27 July 2007, By New Straits Times
KLANG: Police recovered 23 stolen vehicles worth RM2.3 million and arrested three members of a car-theft ring with the help of Captor, a car security company, on Wednesday. Using a helicopter and its radio frequency tracking system, the company detected and tailed a stolen Toyota Fortuner SUV to a warehouse in Jalan Haji Sirat before alerting police.
A police team raided the warehouse where they found the Toyota Fortuner and 22 vehicles that were being cleaned and prepared for "export".
They arrested two men and a woman, aged between 20 and 38.
District police chief ACP Mohd Rodwan Yusof said the suspects were members of a known car-theft ring, which had been crippled in February.
"We believe these cars were destined for Batam or Dubai in the United Arab Emirates," he said.
The vehicles recovered were 14 Toyota Hilux, three Toyota Fortuner, a Toyota Camry, a Toyota Innova, a Nissan X-trail, a Proton Waja, a Proton Putra and a dismantled Mitsubishi Evolution.
Rodwan said police were now looking for three other members of the ring, including the mastermind, who is believed to be outside the country.
He said the ring had been renting the warehouse for a month on the pretext of storing textiles.
The suspects have been remanded until July 31.
A Captor Retail spokesman said the owner of the Toyota Fortuner alerted the Captor Command Centre at 6.30am on Wednesday.
He last saw the vehicle in his compound the previous night.
"We immediately activated the vehicle’s tracking system and despatched four recovery teams and a helicopter to track the car."
The helicopter spotted the Fortuner at 2pm in Bandar Utama and the company used its system to immobilise the vehicle at 2.30pm when it was near Jaya Jusco in Bukit Raja, Klang.
However, the thieves by-passed the security system shortly after and continued to drive it to the warehouse.
Police raided the warehouse at 3.30pm.
Car theft ring busted
27 July 2007, By The Star
KLANG: Thanks to a vehicle tracking and recovery system fixed to a Toyota Fortuner, police busted a syndicate that stole 4WD vehicles and exported them.
Klang police chief Asst Comm Mohd Rodwan Mohd Yusof said that 23 vehicles, estimated at about RM2.3mil, were also recovered when a police team raided a warehouse in Jalan Haji Sirat near here.
Two men and a woman were arrested.
The raid came after the Toyota Fortuner was tracked thanks to the Captor Vehicle Tracking and Recovery System, which was affixed to the vehicle.
The vehicle was stolen on Wednesday and the tracking system was immediately activated.
Four ground recovery teams and a helicopter unit were deployed and managed to track it right up to the warehouse.
Police found vehicles stolen from places such as Mentakab, Port Dickson, Rawang, Alor Star and Klang.
They included Toyota Hilux, Toyota Fortuner, Toyota Innova, Toyota Camry and Nissan X-trail.
They also seized a Proton Waja, a Proton Putra, and a dismantled Mitsubishi Evolution at the scene of the crime.
However, the man who police believe was the mastermind behind the syndicate was still at large, said ACP Mohd Rodwan.
“The vehicles were shipped out through Port Klang to Batam and Dubai,” said ACP Mohd Rodwan.
He said they would steal 4WD vehicles and spruce them up to look new before shipping them out.
ACP Mohd Rodwan said that the vehicles were in great demand in Afghanistan, Pakistan, Dubai and Batam.
Police Recover 23 Stolen Vehicles Bound For Batam, Dubai
26 July 2007, By BERNAMA
KLANG -- Police recovered 23 stolen cars and four-wheel-drive vehicles worth RM2.1 million bound for overseas from a godown at Km4 Jalan Hj Sirat, Meru here in a raid on Tuesday.
Klang District Police Chief ACP Mohamad Rodwan Md Yusof said police arrested two men aged 27 and 38 and a 20-year-old woman to assist in the investigation.
The vehicles seized were 14 Toyota Hilux, three Toyota Fortuner, a Nissan X-Trail, a Toyota Innova, a Proton Putra, a Proton Waja, a Toyota Camry and a Mitsubishi Evolution 7 which had been stripped of its engine.
Following a tip off, a police squad under an operation codenamed "Ops Lejang" trailed a stolen car to the warehouse before raiding it at 3.30 pm, he told reporters at the godown in Meru near here today.
He said the vehicles which were stolen in Kedah, Penang, Perak, Pahang, Kelantan, Selangor, Kuala Lumpur, Johor and Negeri Sembilan were brought to the godown where their chassis numbers were tampered with while their registration numbers replaced.
"The vehicles are meant to be smuggled overseas to places such as Batam (Indonesia) and Jabal Ali in Dubai," he said.
Police said the thieves who had been carrying out their operation for the past one month rented the godown for RM4,000 a month on the pretext of running a textile enterprise.
Rodwan said police were looking for the ring leader who was believed to be overseas and two more men including the one who had rented the godown on suspicion of being involved in the operation.
The three suspects are remanded until next Tuesday and the case is investigated under Section 413 of the Penal
Using Mobile Phones While Driving Increases Accident Risk By 300 Times
26 July 2007, By BERNAMA
SHAH ALAM -- A study conducted overseas showed that using mobile phones while driving increases the risk of road accident by 300 times.
"This applies even if the driver uses a hands-free kit," said Road Safety Department director-general Datuk Suret Singh at the Malaysia/Singapore Scania Drivers 2007 competition here today.
The study was made in Sweden last year while the result of another study in Australia was made public a few weeks ago.
Although no such study had been conducted here, Malaysia could use the result of studies in the two countries.
Singh said sending of short messages (text messaging) while driving was extremely dangerous because it only need two seconds of distraction for an accident to happen.
The department and the Malaysian Institute of Road Safety Research would carry out a study on the use of mobile phones while driving.
On accidents involving heavy vehicles, he said an average of 200 lorry drivers and attendants die annually and the figure would increase to 800 annually year if the death of third parties were counted.
MAA Hopes Govt Include Other Models Under Car-Scrapping Policy
25 July 2007, By BERNAMA
PETALING JAYA -- Malaysian Automotive Association (MAA) hopes the government will include other models under the proposed car-scrapping policy.
Its president, Datuk Aishah Ahmad, said by including other models, it would benefit the motor vehicle industry as a whole.
"We always support car-scrapping. What we would want the government to do is to include other models and not confine to Proton vehicles only.
"Most countries have end-of-life policy for all motor vehicles," she told reporters at the MAA market review for the first half 2007 here today.
Recently, Second Finance Minister Tan Sri Nor Mohamed Yakcop said the government was still studying the possibility of scrapping cars that are 15 years and above and there has been no definite proposal as yet.
The car-scrapping policy was proposed by second-hand car dealers and Proton in an effort to get old cars off the roads and thus boost sales.
Asked on the greatest factor which would affect the domestic car industry moving forward, Aishah said: "I believe that as far as the industry is highly regulated whatever government policy changes will affect Malaysian car industry."
MAA announced that the total motor vehicles sales for the fist half of this year dropped 12 percent to 220,739 units from 251,340 in the same period last year.
Vehicle Sales Drop 12 Pct In First Half, Perodua Tops Sales
25 July 2007, By BERNAMA
PETALING JAYA -- Total vehicle sales dropped 12 per cent to 220,739 units in the first half of this year from 251,340 in the same period last year.
Passenger car sales also declined 12 per cent to 200,454 units from 228,323, Datuk Aishah Ahmad, the President of the Malaysian Automotive Association announced here Wednesday.
Aishah told a press conference that this was due to buyers facing difficulties in getting higher purchase loans, shorter repayment period as well as low used car values.
Sales of commercial vechices dropped 12 per cent to 20,285 from 23,017.
However, a notable feature amid the downtrend during the period was that June vehicle sales rose to 43,783 units from 42,211 in June 2006.
June sales were also substantially higher by 14.2 per cent or 5,456 units than May due to the delivery of the new model VIVA by Perodua.
Aggressive campaigns by motor vehicles distributors particularly Proton also lent a helping hand, she said.
The sales volume for July was expected to continue the uptrend recorded in June, she said.
For the first six months this year, Perodua topped car firms in sales with 75,483 units sold from 79,738 before while Proton came in second with sales of 46,955 units from 60,291.
During the period, Perodua's share in the car market increased to 34.2 per cent compared with 31.7 per cent while Proton's share dropped to 21.3 per cent in the first half against 24 per cent in 2006.
Toyota was number one in the non-national car segment with 36,567 units sold in this year's first half versus 42,002 units before, but its market dropped slightly to 16.6 per cent from 16.7 per cent.
Honda came in second with 14,175 units sold from 13,323 with a 6.4 per cent market share, followed by Naza and Nissan closely.
Production during the review period fell 25 per cent to 207,826 units.
MAA said that the performance for the second half is expected to be better than the first half, with total motor vehicle sales to be 8.4 per cent higher.
Aishah, who also represents Ford Malaysia Sdn Bhd on the MAA board of council members said, the expected higher sales was based on new model launches, the recent salary hike for civil servants and bouyant stock market.
"Sales for June have seen the increase," she said.
On the outlook for this year, Aishah said MAA has revised total motor sales forecast downwards for the whole of this year by six per cent to 460,000 from 490,768 last year.
MAA said the forecasts were based on expectations that new car models will stimulate sales driven by a higher disposal income following a pay raise for civil servants and the relatively bouyant stock market.
Father of dead Nuri pilot gets insurance cheque
24 July 2007, By The Star
KUALA LUMPUR: Datuk Termuzi Abdul Aziz, the father of the pilot who was killed in the Nuri helicopter crash in Genting Sempah on July 13, was presented with an insurance proceeds cheque from AmBank on Tuesday.
The undisclosed amount would immediately offset the outstanding amount of a BMW car, which Capt Nor Azlan Termuzi purchased two years ago.
The remaining balance would provide relief for the family.
AmBank (M) Berhad managing director (retail banking) Mohamed Azmi Mahmood delivered the cheque at Termuzi's residence in Kota Damansara.
Also present was AmAssurance Berhad chief executive officer Ng Lian Lu, who said upon discovery of the event, the claims department took swift initiative of processing and issuing the claim cheque even before any claims were submitted by the deceased's beneficiaries.
"This was to expedite the processing of the claims and ease any financial hardship that the deceased's family would face," he said.
"It is my fate that I lost my wife two years ago and now my son.
"I did not know that my son had taken an insurance policy or else I would have considered selling off the car as the monthly payment of about RM2,000 was too expensive," said Termuzi, who returned to work on Tuesday.
Shafie: Insurance offers protection, savings
18 July 2007, By New Straits Times
KUALA LUMPUR: Less than 40 per cent of Malaysians have insurance protection. Domestic Trade and Consumer Affairs Minister Datuk Shafie Apdal said this was because many did not realise that insurance not only provided protection but was also a form of savings.
"This savings element can be used to meet future financial demands such as for education and family needs," he said at the launch of the National Insurance Association of Malaysia’s whole life insurance policy "Bijak Malaysia".
The policy offers insurance coverage up to the age of 88 years against death as well as total and permanent disability due to natural and accidental causes.
It will be sold by nine banks: Alliance, AmBank, CIMB, EON, Hong Leong, Maybank, OCBC, RHB and United Overseas.
NIAM chairman Sonny Tan said: "Bijak Malaysia will be offered by the banks.
"This is in line with the government’s effort to improve the insurance penetration rate through banks."
Bijak Malaysia’s policy offers four plans with RM100, RM200, RM300 and RM500 monthly premiums.
Tan said: "Usually, insurance policies have a fixed sum assured but in this case, our premiums are fixed."
Since its soft launch in mid- June, total premium revenue for Bijak Malaysia was more than RM1.5 million from 2,000 policyholders.
The two popular plans were the RM100 and RM200 plans.
NIAM Bancassurance committee chairman Koh Heng Kong said they expected an annual premium revenue of RM50 million.
The entry age for the policy is from 30 days to 53 years and policyholders will stop paying premiums after 55.
On top of receiving the full sum assured upon maturity, there is a guaranteed cash payout every three years at five per cent of the sum.
Porsche stolen again... from police station
18 July 2007, By New Straits Times
BUKIT MERTAJAM: Just hours after abandoning a RM1 million sports car which he had driven away from a showroom, the thief is believed to have struck again. This time, he drove the same car out of the district police station compound, and just like in his previous attempt, he abandoned the vehicle.
The Porsche 911 Targa 4 is back in the police station, this time under lock and key in one of the garages.
But the incident has left Penang police stumped and red-faced as this attempt occurred right under their noses.
Penang police chief Datuk Koh Hong Sun has ordered an investigation to ascertain how the suspect gained entry into the district police headquarters compound.
Initial investigations revealed that the suspect got in by cutting the perimeter fence at the back of the police station. The suspect, police believe, had the car keys and came with a container of petrol.
On Monday afternoon, after the suspect had stolen the car, it stalled two kilometres away as there was no petrol.
The suspect abandoned the car but took the ignition key. The car was towed to the police station.
At 11pm, the suspect returned for the car.
After filling the petrol tank, he drove out slowly but when he reached the guardhouse, he almost ran over the sentry who tried to stop him.
The sentry raised the alarm and police immediately mounted roadblocks. At least 10 patrol cars were involved in the hunt.
The car was found abandoned in a secluded spot near Maktab Perguruan Tuanku Bainun, in Mengkuang, about 10km away.
Police believe the suspect may have got cold feet when he realised that roadblocks had already been set up.
Koh said police have lifted fingerprints from the car.
Police have also distributed a photo-fit of the suspect and urged those with information to contact the nearest police station.
The Porsche was stolen from a Naza Premier Auto Bhd showroom at Juru Autocity here about 1.30pm.
The suspect went to the outlet on the pretext of buying the car.
He took out a cheque book to pay the booking fee, but before that asked the saleswoman for the car key, saying that he wanted to hear the roar of the engine.
The saleswoman obliged but to her horror, the suspect stepped on the accelerator and crashed through the glass panel before driving away.
The suspect, however, was forced to abandon the car when it ran out of petrol not far from the showroom.
Porsche stolen again
18 July 2007, By The Star
BUKIT MERTAJAM: The RM963,000 sports car that was stolen from a showroom here yesterday was stolen again – this time from right under the noses of the police.
And police believe it was the same man who pulled it off again, because he had the car keys.
The thief stole the Porsche 911 Targa 4 from the compound of the police headquarters here at 10.45pm yesterday.
The car had been stolen from a showroom at Auto-City in Juru about nine hours earlier.
Police recovered the car an hour near Maktab Tuanku Bainun in Mengkuang Titi, about 15km away. But this time, unlike in the first incident, the car had fuel.
State police chief Deputy Comm Datuk Koh Hong Sun said disciplinary action would be taken against policemen who were found to be negligent in their duties.
“We have the suspect’s fingerprints and are confident of arresting him soon,” he said after attending a ceremony for the transfer of 42 police personnel from the North Seberang Prai district to the Central Seberang Prai district at the police headquarters.
In the first incident, the man, said to be smartly dressed man who flashed a cheque book, coolly asked for the key of the car, started it and sped off after crashing it through the showroom’s glass pane.
Police recovered the car some 2km away, at Hujung Perusahaan Dua in Prai.
Dewan Negara: CID chief chided over statements
12 July 2007, By New Straits Times
CHECK your facts before making statements, especially when they concern sensitive issues and could damage the country’s image and credibility. This advice was given by Deputy Internal Security Minister Datuk Johari Baharum to Federal CID director Datuk Christopher Wan Soo Kee following a statement by Wan that money from the sale of stolen cars was being used to fund terrorists and criminal activities.
Johari said when such a subject was being touched, greater caution should be exercised.
"It is better to issue statements which are based on facts, particularly in matters involving neighbouring countries," he said.
Johari met Wan at the ministry yesterday to hear his explanation on the statement.
"He explained that he did not make such a statement and claimed his statement had been misinterpreted. I told him to be careful in future," he said when met in the parliament lobby.
The general rule, said Johari, was that police should be careful when issuing statements so as not to create public unease.
"They should not comment on things of which they are not certain, especially those which can create misunderstanding internationally," he added.
Last Monday, Datuk Bung Moktar Radin (BN-Kinabatangan) sought a clarification from Johari over Wan’s statement.
"Is this true or is it an assumption on his part? It is serious and will have an impact on the country’s image," he said.
Bukit Aman public relations officer Superintendent Rasdi Ramli clarified that Wan’s remarks at the opening of a conference on smuggled vehicles in Cheras had been misinterpreted.
Ring smuggling stolen cars from Malaysia to Batam
12 July 2007, By The Star
KUALA LUMPUR: A syndicate is smuggling stolen Malaysian cars to Batam and the Malaysian police are working with their Indonesian counterparts to track it down.
Federal CID director Comm Datuk Christopher Wan Soo Kee confirmed the existence of such a syndicate.
“We will contact the Indonesian police to gain more information and to assist them if possible,” he said yesterday.
He was asked about reports that six Malaysians had been arrested on Batam by Indonesian police in the biggest seizure of stolen cars from Malaysia, Singapore and Indonesia.
The reports quoted Riau Island police criminal investigations chief Senior Commissioner Basaria Panjaitan as saying that the Malaysians were arrested together with three Indonesians.
More than 40 vehicles, which had been reported stolen as far north as Penang, were recovered from a Batam warehouse during the bust.
Panjaitan said members of the syndicate would drive the stolen cars from Johor to Tuas Second Link to Singapore and into waiting containers at Jurong Port.
“The cars were falsely declared in Customs papers as legal goods and left Jurong Port for Batam’s Batu Ampar port,” he added.
CID Director To Explain Statement On Terrorism Funding
10 July 2007, By BERNAMA
KUALA LUMPUR -- Federal CID director Datuk Christopher Wan Soo Kee will be summoned for an explanation on his statement that syndicates are stealing cars to fund terrorism, Deputy Internal Security Minister Datuk Mohd Johari Baharom said Tuesday.
"I will ask him to explain his statement," he said when replying to a supplementary question from Datuk Bung Mokhtar Radin (BN-Kinabatangan) during question time in the Dewan Rakyat Tuesday.
Bung expressed concern that Wan's statement could mar Malaysia's image.
Wan had said yesterday an average of 980 cars are stolen every month nationwide and that most of the cars would be taken across the border for sale, with the proceeds used to fund terrorism and criminal activities in some countries.
He had said vehicle theft had turned into a lucrative business and syndicates, which were usually well organised, made hefty profits running into the millions from the illegal trade.
Syndicates steal vehicles to fund terrorism
10 July 2007, By New Straits Times
KUALA LUMPUR: An average of 980 cars are stolen every month nationwide. Federal CID director Datuk Christopher Wan Soo Kee said most of the cars would be taken across the border for sale, with the proceeds used to fund terrorism and criminal activities in some countries.
He said vehicle theft had turned into a lucrative business and syndicates, which were usually well organised, made hefty profits running into the millions from the illegal trade.
Interpol’s database for stolen vehicles, started four years ago, contains records of more than 2.5 million stolen vehicles from 59 countries.
"Between January and May this year, 4,907 cars were reported stolen nationwide, an increase of 11.5 per cent compared to the same period last year.
"This number is part of the three million vehicles stolen from countries in Asia, Africa, Europe and North America every year, worth an estimated US$21 billion (RM72 billion).
"Such huge profits can be used by criminal organisations to strengthen their activities and support terrorism, while destabilising developing nations at the same time," Wan said after opening the first regional joint course on smuggling stolen vehicles at the police college in Cheras.
The two-week course will be attended by 29 Malaysian and Thai police officers.
Wan said among the car makes favoured by syndicates here were Mercedes Benz, BMW, Honda and four-wheel-drive vehicles like the Toyota Hilux.
He said it was hoped that course participants would study tactics used by syndicates and share knowledge and expertise in combating the menace together.
Terror funds from sale of stolen cars
10 July 2007, By The Star
KUALA LUMPUR: Luxury vehicles stolen in Malaysia are being smuggled overseas for sale to fund terrorist and criminal organisations.
Describing the theft and smuggling of vehicles as a worldwide phenomenon, Federal CID Director Datuk Christopher Wan Soo Kee said proceeds from ill-gotten gains might be used to support and strengthen criminal or terrorist organisations.
“At the same, time, it destabilises developing nations. There is (thus) a need to understand the tactics and strategies practised by the syndicates as it would help the police perform and instigate a better alternative in battling the crime.
“Trafficking and smuggling of stolen vehicles are mainly the work of structured and sophisticated global criminal groups,” he told reporters yesterday.
Between January and May this year, 4,907 luxury vehicles were reported stolen in the country for this purpose, an increase of 11.5% compared to the same period last year.
These vehicles make up part of the three million stolen in Asia, Africa, Europe and North America annual- ly, worth an estimated US$21bil (RM72bil).
Earlier, Wan opened the First Regional Joint Course on Smuggling Stolen Vehicles involving the Malaysian and Thai police at the Royal Malaysia Police College here.
Twenty-nine participants are attending the two-week course.
Wan said the Asean region was being used as a transit point to smuggle stolen luxury vehicles, and violence was used as part of the modus operandi to steal luxury cars and smuggle them overseas.
Wan said there was a need to enhance bilateral strategies, expertise and information in combating vehicle thefts.
Proton & Perodua Vendors Want Old Cars Scrapped
9 July 2007, By BERNAMA
KUALA LUMPUR -- Proton and Perodua vendors told the government today that voluntary scrapping of motor vehicles more than 15 years old in return for RM5,000 rebates when buying new national cars can have a spin off effect on the automotive industry.
"Increased sales of new motor vehicles, especially Proton and Perodua cars, will lead to an increase in demand of parts and components produced by Malaysian vendors," said Kelab Vendor Perodua and Proton Vendors Association.
It will also help bring down costs, improve quality and delivery, they contended.
"(Hence), the scrapping (should) start with immediate effect to improve effectiveness and generate demand for new motor vehicles," they said in a joint memorandum to the Ministry of International Trade and Industry (MITI) at the ministry's annual dialogue session here.
They also proposed a supporting policy to go with the scrapping proposal - allow the export of used national cars with a rebate on excise duties paid.
"The vacuum created from the exports will generate sales for new or newer cars. It also helps in resolving the excess stock of used cars," they argued.
The associations said the policy to end the life of vehicles is critical for continued growth and sustenance of the Malaysian automotive industry.
They pointed out that Japan de-registers about five million vehicles yearly.
In 2005, it discarded about six million and registered 6.5 million new vehicles, thus ensuring a continued market demand for new vehicles.
The associations also proposed that the government provide some form of support to efforts to introduce the Malaysian brand in selected overseas markets.
No Plans To Allow Workshops To Conduct Vehicle Inspection
9 July 2007, By BERNAMA
KUALA LUMPUR -- The government has no intention of allowing ordinary workshops to conduct vehicle inspection, a job currently being carried out by the Computerised Vehicle Inspection Centre (Puspakom).
Deputy Transport Minister Datuk Seri Tengku Azlan Sultan Abu Bakar said Puspakom was still capable of handling its responsibility despite having to deal with increasing workload following the enforcement of a new regulation on the transfer of vehicle ownership.
The new ruling requires vehicles to be sent for inspection before the transfer process can be done.
"The government is satisfied with the performance of Puspakom, and so far it has no plans to allow other parties to perform vehicle inspection," he said when responding to a supplementary question from Fong Kui Lun (DAP-Bukit Bintang) at the Dewan Rakyat here today.
Tengku Azlan said Puspakom was capable of handling at least 5.2 million inspections a year but only 2.6 million vehicles were sent for checks annually.
To an original question from Teng Boon Soon (BN-Tebrau), Tengku Azlan said the government had taken steps to reduce the waiting period for vehicle inspection by increasing the number of Puspakom branches to 64 from 31 previously.
"Thirty of the branches will operate until 8pm and those in Wangsa Maju, Padang Jawa, Johor Baharu and Mak Mandin will also open on Saturdays," he added.
On private vehicles sent for inspection for financing purposes, he said it was found that more than 11,000 of the 880,000 vehicles checked had been modified, including having different chassis and engine numbers.
Puspakom also has to deal with illegal cut-and-join vehicles, he said.
Puspakom checks on used vehicles from today
2 July 2007, By The Star
KUANTAN: The ruling compelling all second-hand private vehicles to undergo mandatory Puspakom inspection before the transfer of ownership will take effect today.
Transport Minister Datuk Seri Chan Kong Choy said there would not be any deferment as Puspakom had given assurances that it was ready for the task.
“Puspakom has the capacity to conduct inspections on some two million private vehicles a year,” he said yesterday.
“At present, only about one million vehicles are utilising its services.
“As such, we do not foresee any major problems but will monitor the development closely,” he told reporters after opening the state MCA elections training camp at Wisma MCA here.
In May, the Cabinet approved the ruling in a move to address the increasing numbers of “cut-and-join” cars (kereta potong) on the road.
The move is also aimed at protecting the interest of car buyers and to ensure that only roadworthy vehicles are allowed on the road.
Chan said Puspakom expected a 25% increase in cars to be inspected at all its branches, at a cost of RM30 per vehicle.
He said vehicles which received the certification from Puspakom could proceed with the transfer of ownership within two weeks.
Among others, Puspakom checks will involve identifying the chassis and engine numbers, seating capacity, car model, year of manufacture, colour and the level of tint.
At present, only commercial vehicles are required to undergo compulsory checks at Puspakom branches every six months.
On allegations that Puspakom officials were on the take to approve an inspection, Chan said there must be evidence to support the matter.
“I urge the parties involved to furnish me with proof and I will see to it personally and take stern action,” he added.
On a proposal to ban vehicles over 15 years old from running on the roads, Chan said his ministry was still studying the matter.
He also commended the police for setting up 16 watchtowers at accident-prone stretches nationwide.
Higher loading by two motor insurers - MAA Assurance and AmAssurance cite high claims, falling car values
22 June 2007, By The Star
PETALING JAYA: Malaysian Assurance Alliance Bhd (MAA Assurance) and AmAssurance Bhd are believed to be raising their motor insurance premiums, citing high claims, declining car value and a surge in labour costs.
It is learnt that the two large insurers have already sent circulars to their respective agents informing them of the higher loading on motor premiums.
Sources told StarBiz that the revised loading would take effect at MAA Assurance by end-June and at AmAssurance next month. A higher loading meant increased motor premiums.
AmAssurance, where privately owned cars compose more than 90% of the portfolio, has not previously imposed any comprehensive loading but has done so for third-party coverage about six months ago.
As for MAA Assurance, it imposed loading on commercial vehicles and third-party motor coverage at the start of the year.
The loading structure now comprises comprehensive and third-party coverage with a fixed ceiling attached.
Currently, the two players each command close to 15% of the local motor insurance market. Among the motor insurance players, Kurnia Insurans (M) Bhd is the largest with about 30% market share.
Sources said the planned increase in loading would be in line with the current practices of insurance companies, which is based on the age of the vehicle, age of driver and claims history.
An official at Kurnia said the company was still studying the matter and assessing the market before deciding on the premium loading. He did not give further details.
The official said Kurnia's third-party premium loading came into effect on June 1. For comprehensive loading, the most recent hike was about two years ago but it was not across the board.
“We expect other insurance companies with significant motor portfolios to raise premiums in the next few months. According to Bank Negara statistics, the claims ratio in the motor business last year exceeded 71%.
“If one were to add distribution costs and administrative expenses, the combined ratio on motor business would exceed 95%, hence leaving very little margin for insurance companies,” a source said.
An insurance company official said his firm was looking at imposing higher comprehensive loading, based on its claims experience.
“Motor claims ratio at the company increased to 75% in March 2007 from 66% in March 2006. We also feel that most of the other players in the industry are suffering the same fate.
“The company's high claims ratio is largely due to the increase in the frequency of accidents and severity of claims cost per accident, particularly involving younger drivers.
“The situation has been made worse by the drop in the market value of cars and the increase in labour costs,” the official said.
An MAA Assurance official said because of increased auto theft cases and poor car sales values, individual companies may impose higher loading.
“It is estimated that close to 25% of MAA Assurance's auto claims comprise theft and we foresee higher motor premiums, moving forward,'' he noted.
Insurance firm’s bid for stay in RM30m case dismissed
21 June 2007, By The Star
PUTRAJAYA: The Federal Court has dismissed CGU Insurance Bhd’s application for a stay of execution to pay out a claim of RM30mil pending its application for a review of the payment order.
CGU Insurance is seeking a review of the Federal Court’s decision that the insurance company was wrong to cite fraud as its reason to reject the RM30mil claim made by a paper mill which was destroyed in a fire 18 years ago.
Chief Judge of Sabah and Sarawak Justice Richard Malanjum and Federal Court Justices Nik Hashim Nik Ab Rahman and Hashim Mohd Yusoff unanimously rejected CGU Insurance’s application.
CGU Insurance, now Mitsui Sumitomo Insurance (M) Bhd, filed an application to the Federal Court to review its earlier decision and also an application for a stay of execution of the judgment sum pending the review.
On Feb 2, the Federal Court reversed the Court of Appeal’s decision and affirmed the High Court order that CGU Insurance Bhd – formerly known as Commercial Union Assurance (M) Bhd – pay RM16,124,500 in fire insurance claims to Asean Security Paper Mills for property destroyed in a fire in 1989.
Justice Datuk P.S. Gill, who was then the High Court judge, also ordered Commercial Union Assurance to pay Asean Security Paper Mills interest at 8% from the date of the filing of the writ on Sept 11, 1990.
The fire at Kampung Acheh Industrial Estate in Sitiawan, Perak, on Sept 11, 1989, destroyed property worth RM32mil.
Malaysia Faces Serious Challenge In Handling Floods And Drought
21 June 2007, By BERNAMA
PUTRAJAYA -- As Malaysia marches towards 2020, it is expected to face serious challenges relating to flood and drought management, Drainage and Irrigation Department Director-General Datuk Dr Keizrul Abdullah said here Thursday.
"Per capita availablity of water will greatly decrease as a result of the growing population and greater per capita use of water for a better quality of life, urbanisation and industrialisation," he said.
Other potential problems to be faced by the nation in moving towards a developed state status include increased severity and frequency of flash floods, prolonged droughts especially during El-Nino years, water and land use conflicts, decreasing crop yeild and increasing water demand for food production, pollution control, outbreaks of water borne diseases, declining aquatic biodiversity, deforestation and uncontrolled erosion and sedimentation.
In a paper presented at the two-day National Seminar on Socio-Economic Impact of Extreme Weather and Climate Change here, Keizrul said flooding was the most significant natural hazard in the country in terms of population affected, frequency, area extent, flood duration and socio economic damage.
"Having 189 river basins throughout Malaysia, the rivers and their corridors of flood plains fulfil a variety of functions both for human use and for the natural ecosystem where they are a fundamental part of the natural, economic and social system. At the same time, rivers might be the largest threat to the entire coridor areas," he warned.
On drought, the director-general said with Malaysia situated within the heavy rainfall region, the possibility of a serious drought is much less as compared to many other countries.
However, he said when drought occurs, haze is often a major issue which causes health problems, limiting visiblity and deterring tourists and "hence, the management of drought needs to minimise the environmental impact of haze".
Apart from these two problems, Keizrul said there were also indirect problems associated with flood and drought management such as the need for appropriate institutions and legislation.
He said under the country's Constitution, matters pertaining to water, rivers, land and forest were under the jurisdiction of state governments while the gazetting of catchment areas was under the purview of the federal governmment.
"Presently, the need for gazetting of catchment areas that have been initiated by federal agencies do not always get the same level of support from state agencies. This may be partly due to the fact that the water catchment areas are providing state governments with much of their state revenue for other uses such as timber logging and industrial or township development.
"This situation will complicate flood and drought management in the country. To complicate matters, irrigation and drainage, including flood control, is a concurrent responsiblity of both federal and state government," he added.
He suggested that development of policies, strategies and action plans to overcome flood and drought be based on a comprehensive approach taking into account a wide range of mitigating factors.
Lorry Owners Fume Over Puspakom Rate Increase
20 June 2007, By BERNAMA
KUALA LUMPUR -- The Pan Malaysian Lorry Owners Association (PMLOA) is disappointed that the Computerised Vehicle Examination Centre (Puspakom) has been allowed to increase its inspection fees from July 1, said its president Er Sui See.
Last week, the Government gave Puspakom the go ahead to increase compulsory bi-annual inspection fees by RM15 to check commercial vehicles roadworthiness.
Apart from that, Puspakom has also been given the approval to introduce new rates for initial inspection, re-inspection and special private and commercial inspections.
However, Er claimed that the increase worked out to more than RM15 for bi-annual inspection of trailers.
"Its like a bomb to us. As an example, currently we have to pay RM100 for trailer inspection. With the new rate, we will have to pay RM165," he told Bernama today.
Er said Puspakom, which has been given the sole concession by the government to carry out the mandatory commercial vehicle inspections, should improve its services first before being allowed to increase fees.
"Our lorries have to wait hours on end to be inspected. Other than that, Puspakom's computerized system is not linked to the Road Transport Department (JPJ), contrary to what it claims," he said, adding that the association, which had a membership of about 10,000 and responsible for some 100,000 lorries, wanted the government to reconsider its decision.
Puspakom chief executive officer Datuk Salamat Wahid in an immediate response, said the company's concession agreement signed in Sept 1994 allowed a first review of rates after five years of operation and subsequently every three years after that.
However, Puspakom had not increased the rates since then (1994) and was only allowed to do so now, he said.
"Originally we only needed to provide 31 branches throughout the country but due to social commitment to rural areas such as the East Coast, Sabah and Sarawak, we have a total of 64 branches now.
"Some branches are not commercially viable but at the same time, we have to acquire and maintain equipment from overseas, which makes us incur higher costs but necessary to comply with advanced inspection standards," he said.
Salamat also said Puspakom only charged RM60 for routine checks on trailers and that the new rate would be RM75.
He added that with the increase, the public could expect better service from Puspakom as it would be upgrading its computer systems, adding branches and providing more inspection facilities, especially at the busy centres of Wangsa Maju here, Padang Jawa in Selangor and Johor Bahru.
JPJ director-general Datuk Ahmad Mustapha Abdul Rashid when announcing the increase last week had said the hike was unavoidable due to escalating operational costs such as for utilities, manpower and foreign exchange borne by Puspakom to run its services.
Taxis, buses, lorries and other commercial vehicles will be most affected by the hike as bi-annual inspections are compulsory for them.
The buck stops with you, MSWG tells directors
15 June 2007, By The Star
PETALING JAYA: The Minority Shareholder Watchdog Group (MSWG) yesterday reminded company directors that “the buck does stop with you” and as such, they should not be pointing fingers at others when the corporate governance team performs badly.
In a statement, MSWG chief executive officer Abdul Wahab Jaafar Sidek urged directors without the skills to seek training or professional advice, and to always remember that “you set the tone for ethics and integrity”.
He also reminded auditors that nothing material should slip past them unless there was “extensive collusion to hide fraud” and they must think independently of management and “owners”.
He said minority shareholders, like everyone else, had been appalled by the recent wave of corporate governance and accounting irregularities, and questioning what went wrong.
While MSWG commended Bursa Malaysia for putting good rules in place, it also said enforcement was necessary for compliance.
Wahab suggested that Bursa go out into the field and check a few small and medium companies each year, and publish its reports and recommendations on its website.
He also urged Bursa to “close the loopholes in its rules” as its relaxations had been abused.
“There should be no more non-executive directors on the audit committee and at least one real accountant should sit on the audit committee to understand the accounts,” he said, adding that Bursa could re-consider mandatory regular training for non-executive directors.
Meanwhile, analysts are advised to read companies' annual reports and educate themselves on the importance of corporate governance.
Malaysian Institute of Accountants, which has the right to regulate and punish accountants and auditors, should exercise that right.
Wahab also reminded minority shareholders they were not powerless and had a right to answers. For instance, they could contact the named senior independent non-executive director at any time or question the audit committee chairman directly at the AGM. He also said MSWG was pleased that the Securities Commission had shown its seriousness in policing the market, but would like to see more speedy and punitive measures taken against perpetrators.
Business Community Loses RM 50 Milllion In Flash Floods
14 June 2007, By BERNAMA
KUALA LUMPUR -- The business community at Jalan Tuanku Abdul Rahman, Jalan Masjid India and Jalan Lebuh Ampang lost a whopping RM50 million in Sunday's flash floods.
Ramesh Kodammal, vice-president of the Kuala Lumpur and Selangor Indian Chamber of Commerce and Industry, said about 200 business premises were closed for three days after the flash floods.
Shops selling textile, jewellery, sundry goods, books and magazines were badly affected in the three-hour downpour, he told reporters.
Ramesh claimed nothing was done to mitigate the flooding problem despite submitting several memoranda to the Kuala Lumpur City Hall.
He hoped the situation would improve with Malaysia celebrating its 50th year of independence this year.
Meanwhile, one of the affected shopowners Rasul Abdul Razak, who owns the popular Abdul Razak Jewellery, said 44 shops along Lebuh Ampang lost RM10 million in the floods.
He said they did not have enough time to move their merchandise as the water was rising fast.
"Within 20 minutes, the water rose to 4 feet (1.2m)," he said, adding that the government and Kuala Lumpur City Hall must take appropriate measures to address the flash floods.
The heavy downpour wreaked havoc, bringing Kuala Lumpur to a virtual standstill, with roads and business premises submerged in floodwaters.
This prompted Prime Minister Datuk Seri Abdullah Ahmad Badawi to visit the Kuala Lumpur City Hall flood operations centre for a briefing on the causes of the frequent flash floods and progress of the flood mitigation projects in the federal capital.
Flu pandemic may affect millions
14 June 2007, By The Star
AN estimated seven million people in Malaysia could be affected if the country were to be hit by an influenza pandemic.
Between 2% and 22% of those affected would require hospitalisation and at least 5,000 patients would be admitted to the intensive care unit of hospitals nationwide.
This is based on facts given by the World Health Organisation (WHO), which set the attack rate of the pandemic at 30% and by the current population of 26 million.
Health Ministry disease control division director Datuk Dr Hassan Abdul Rahman said yesterday the burden on the country would be high and it was important to have the necessary preparations to meet the challenge of a rapidly spreading pandemic.
“The healthcare system will be overloaded,” he said during his presentation at the Pandemic Human Influenza/Avian preparedness within the Organisation of Islamic Conference seminar.
The conference will be opened by Prime Minister Datuk Seri Abdullah Ahmad Badawi today.
Dr Hassan also said that there was a 90% chance that the pandemic would start in Asia but only 10% of anti-viral drugs and vaccines would be available to the region, while the bulk would be available for the developed world.
Malaysia had launched its National Influenza Pandemic Preparation Plan in January last year where among its functions was to have proper public health preparations, surveillance, vaccination and standard operative procedures.
Later when talking to the press, Dr Hassan said that the private sector would be involved in simulation exercises carried out by the ministry, and expressed confidence that the country would be able to handle a pandemic with the preparedness plan, stockpiling of drugs and hospitals.
New insurance plan to protect travellers if trip is called off
14 June 2007, By The Star
PETALING JAYA: Local travellers will soon be able to get tour fare protection under a new insurance scheme endorsed by the Tourism Ministry.
This comes about five weeks after a tour company, Excellence Holidays Sdn Bhd, went bust, causing 336 travellers to lose RM2.4mil in total.
Those instrumental in creating the new scheme said the tour fare protection would cover travellers against services not rendered.
“This is not coverage against a company going bust. It will cover the traveller for up to RM10,000 if the tour package is not carried out for whatever reason,” said a source.
Apart from the tour fare protection, the scheme – which will cost RM15 per person – would also provide insurance against accidental death and permanent disablement (RM25,000), medical expenses (RM5,000), outpatient treatment (RM1,000), repatriation (RM15,000) and personal liability (RM100,000).
“The amount of coverage for the other components is not as high as other insurance packages but travellers are free to top up with any other travel insurance on offer,” the source said.
It is understood that the scheme is targeted to be implemented by July 1, initially syndicated across four insurance companies.
“We are proposing to make it mandatory for all tour agents, upon registering or renewal of licence, to participate in this with the insurance premium rolled into the cost of the tour package,” the source said.
The source said the scheme was urgently needed with the rising negative perception and low confidence level of the travelling community towards the travel industry after the Excellence Holidays episode.
“There is also the increasing frequency of accidents happening to Malaysians travelling overseas.”
The insurance scheme, based on a proposal presented by Tahan Insurance (M) Berhad, would be managed via a joint venture between a private company, Timeless Vacation Sdn Bhd, and a wholly owned subsidiary company of the Tourism Ministry, Pempena Sdn Bhd.
Apart from protecting outbound travellers, the scheme would also protect foreign inbound travellers in the same manner with the insured amounts being slightly higher and the premium at US$15 (RM52).
Malaysian Association of Tour and Travel Agencies president Ngiam Foon welcomed the move, as it was good for the industry. However, he said the association would launch its own package that would also have tour fare protection, on June 19.
It was also reported that AXA Affin General Insurance Bhd has been providing cover for loss of deposit or payment made to travel agencies from June 1 with its SmartTraveller policy.
Melaka Straits Must Be Kept Safe From Maritime Terrorism, Says IGP
12 June 2007, By BERNAMA
KUALA LUMPUR -- Inspector-General of Police Tan Sri Musa Hassan today cautioned on the danger of maritime terrorism in the Straits of Melaka, which if left unchecked, could lead to chaos and destruction in the busy waterway.
He gave one scenario where a ship could be used as a weapon for a suicide mission, in the manner of the World Trade Centre and Pentagon attacks.
"If terrorists were to commandeer a ship transporting LPG (Liquified Petroleum Gas) for a suicide mission in the strait, such an act would devastate southeast asia's economic environment and severely disrupt trade.
"Significant impediments to the flow of oil would be a direct threat to the national security of countries that are highly dependent on it, particularly Japan and South Korea.
"It would mean re-routing vessels, which would lead to the sky-rocketing of freight and insurance rates, which in turn will have a devastating global economic impact.
"Thus, it must be kept open and safe, and the prime responsibility for this is with the three littoral states of Indonesia, Singapore and Malaysia," said Musa.
He was making a keynote presentation entitled 'Overcoming the Challenges of Piracy in the Malacca Straits - Issues and Solutions' at the 6th Tri-annual International Maritime Bureau Meeting on piracy and maritime security here today.
On piracy incidents there, he said only one case was reported since January this year.
Between January and December last year, 83 cases were reported in regional waters. Overall the number of maritime piracy attacks had reduced since 2001.
Between 2001 and 2003, Musa said there were 476 actual and attempted attacks while the number reduced to 260 cases between 2004 and 2005.
Maritime terrorism, Musa said, comprised three forms which were of particular concern. They are:
I. An attack on an individual ship
II. The hijacking of a ship carrying dangerous materials, and;
III. The use of ship as a weapon to attack port or land facilities.
Musa also spoke about a "criminal phenomenon" involving the extortion of fishermen in the strait.
He said the Malaysian Fisheries Department had reported that fishermen were forced to pay a monthly "ransom" to pirates, if they wanted to continue fishing.
"Although the problem is limited to certain areas in the strait, it is becoming rampant.
"Upon the payment of the "ransom", the fishermen will be given 'safe fishing certification'.
"Without such certification, they would not be allowed to fish and their boats seized," added Musa.
On the East Asean Emergency System (EAES), the IGP urged police in each Asean country to obtain information and data on terrorism and piracy from the system, to find solutions to improve maritime security in the region.
Employers Need To Insure Foreign Workers - Deputy Minister
12 June 2007, By BERNAMA
BUTTERWORTH -- About 30 per cent of 1.92 million foreign workers in the country, especially those working at mamak restaurants, were not insured by their employers.
Deputy Human Resources Minister Datuk Abdul Rahman Bakar who disclosed this Tuesday, said most of the employers claimed that they need not take out insurance for their foreign workers because they had paid levies before they came here.
"That's insurance coverage bought in their home countries and it's not valid in Malaysia," he told reporters at a function held by the Social Security Organisation (Socso) here.
He said the employers should buy insurance for their foreign workers from the 24 companies appointed by the government for their benefit in times of death or accident at the work place.
The ruling had been enforced since 1992, he said and added the benefits were similar to those enjoyed by private sector employees aimed at safeguarding their welfare as they too were an asset to the country's economic development.
Colorectal Cancer Is Now No. 1 Killer Among Men
11 June 2007, By BERNAMA
KUALA LUMPUR -- Colorectal cancer has taken over from lung cancer as the number one killer for men in this country last year, according to Health Minister Datuk Dr Chua Soi Lek.
He said colorectal cancer accounted for almost 14.2 per cent of all cancer suffered by men and the third most common cancer among women, that is 10.1 per cent of all the cancer suffered by women referred to government hospitals.
"The prevalence and percentage of colorectal cancer patients is increasing each year and the risk is higher for those aged 50 and above," he said when officiating the Malaysian Society of Gastrointestinal Diseases (MESSAGED), here Monday.
Colorectal cancer is now the most common gastrousus ailment, followed by cancer of the stomach and liver cancer.
According to the 2006 Annual Report of the Sub-system Medical Treatment, gastrousus diseases formed the seventh highest admissions of patients to government hospitals, totalling 98,955 cases.
Private Sector Urged To Set Up Birdflu Contingency Plan
11 June 2007, By BERNAMA
KUALA LUMPUR -- The private sector is urged to put in place a contigency plan to face any potential Bird Flu pandemic, Health Minister Datuk Dr Chua Soi Lek said.
He said although the government was fully prepared, private sector awareness towards this disease was still low as they were unaware of the seriousness of its impact, should the disease hit any country in the region.
"What we do not have is the cooperation from the private sector. They are not fully aware of the risks.
"We hope the private sector in Malaysia would put in place the contingency plan in the event of a pandemic avian influenza hitting Malaysia," he told reporters after officiating the Malaysian Society of Gastrointestinal Diseases here, Monday.
He said the Ministry had recently conducted a briefing with representatives from various business organisations on the urgent need to set up an action plan in case of a birdflu pandemic.
On the update of the birdflu outbreak in the country, Dr Chua said all the four patients admitted to hospitals following contact with dead chickens were tested negative for birdflu.
He added that the flock of chicken which were suspected to have died of birdflu in Kuala Terengganu last Saturday were also tested H5N1 negative.
"In Sungai Buloh, we have not detected any case of human bird flu. The four patients admitted will be allowed to go back if their fever drops today and returns to normal.
"This is another good sign in Malaysia. Every time they see dead chicken, they come to hospital," he said.
He added that the Ministry was also monitoring health conditions of the frontliners involved in culling and monitoring works on a weekly basis.
"There are some 200,000 of them, health officers, veterinary officers who are involved in culling and the police," he said.
Asked about the outcome of the 2nd Asia Pacific Economic Forum (APEC) Health Ministers Meeting in Sydney, Australia on June 7 and 8 which he attended, Dr Chua said the member countries agreed to cooperate to fight against any potential global bird flu pandemic.
They also reaffirmed commitment to share samples of any new birdflu strain in the effort to safeguard humans from the deadly pandemic.
Another step to greater road safety
30 May 2007, By New Straits Times
PUTRAJAYA: Malaysia’s commitment to road safety has received international endorsement in the form of membership in the Global Road Safety Partnership (GRSP).
Membership will allow the Transport Ministry to receive and exchange road safety best practices with other members in the world body under the International Federation of Red Cross and Red Crescent Societies.
"This is recognition of our road safety efforts by the international community and will help us in implementing our 2006-2010 Road Safety Plan," Transport Minister Datuk Seri Chan Kong Choy said after witnessing the signing of agreements between the IFRC and his ministry yesterday.
Membership means that Malaysia will be getting help from GRSP to develop and implement road safety programmes such as campaigns and advocacy programmes that encourage the use of crash helmets and discourage handphone usage while driving.
GRSP Asia regional director Robert Klein said there were a "myriad" of road safety issues which needed to be addressed, and Malaysia could develop expertise in these areas to share with other countries.
The ministry’s Road Safety Department director Datuk Suret Singh said international backing would help the department engage the private sector in road safety programmes.
"We are working with the Education Ministry on having better road signage at schools and on uniforms for school traffic wardens, things where the private sector can help with sponsorships," Suret said.
The private sector was urged to help the department’s Helmet Wearing Initiative which will see the free distribution of one million motorcycle helmets over the next two years.
The Malaysian Institute of Road Safety Research (Miros) will also work with GRSP to document its programmes and results for sharing with other member countries.
The partnership is aimed at achieving a 50 per cent reduction in the number of injuries and fatalities due to road accidents by 2010. This translates into a reduction from the present six deaths per 10,000 registered vehicles to just two.
The memorandum of understanding was signed by the ministry’s secretary-general Datuk Zakaria Bahari and IFRC Asia Pacific Service Centre head Ole Johan Hauge.
Amendments Allow Contributors To Withdraw EPF Funds To Buy Insurance
24 May 2007, By BERNAMA
KUALA LUMPUR -- The amendments to the Employees Provident Fund (EPF) Act will enable contributors to withdraw their Account 2 funds for the purpose of purchasing insurance policies covering critical illnesses for themselves and their families.
Parliamentary Secretary to the Finance Ministry Datuk Seri Dr Hilmi Yahaya told the Dewan Negara this when winding up of the debate on the EPF (Amendment) Bill 2007 today.
He also said that the move to reduce the contribution for those aged 55 years and above by half was not a discrimination against them.
Instead, it was aimed at encouraging employers to offer them work without burdening them and their employers, he said.
On a suggestion for the EPF to allow contributors to withdraw their funds for the purpose of performing haj, he said the proposal would go against the EPF's original objective of enabling them to save enough money for retirement.
The Bill was later passed.
The Dewan Negara also passed the Inland Revenue Board (Amendment) Bill 2007.
April Vehicle Sales Fall 17 Pct
24 April 2007, By BERNAMA
KUALA LUMPUR -- Motor vehicle sales fell 17 percent to 33,679 units in April from 40,482 units in the corresponding month of last year, the Malaysian Automotive Association (MAA) said.
In a statement here today, MAA said the decline was due to lack of consumer confidence, difficulty in obtaining hire purchase loans and poor resale value of used cars.
For the January to April period, sales dipped 16 percent to 138,629 units from 164,434 units in the same period last year.
MAA said compared to March 2007, vehicle sales declined by 12.8 percent, or 4,940 units.
Of the vehicles sold in April this year, passenger cars accounted for 30,205 units and commercial vehicles 3,474 units.
Production in April dropped by 26 percent to 33,829 units from 45,718 units registered in the same period of last year.
Of this, passenger cars accounted for 31,193 units and commercial vehicles 2,636 units.
Production in the first four months of this year saw 114,232 units of passenger car and 11,720 units of commercial vehicles, providing a total of 125,952 units as against 187,202 units in the same period last year.
MAA said it expected sales volume for May to remain at the same level amid the launch of the new Perodua model.
Employers Must Pay Insurance For Maids Soon
24 May 2007, By BERNAMA
KUALA LUMPUR -- Employers will soon be required to take insurance coverage for their foreign housemaids.
Home Affairs Minister Datuk Seri Radzi Sheikh Ahmad said the employers might have to pay between RM75 and RM80 a year as premium for the insurance coverage.
"The proposal will be submitted to the Cabinet two weeks from today."
He was speaking to reporters after attending a 45-minute meeting with Indonesia's Minister of Energy and Transmigration Erman Suparno on several issues including a memorandum of understanding (MoU) on housemaids.
The two men held the meeting at Parliament House here today.
Radzi said the insurance premium must be paid when the employers pay the levy for their maids.
"The insurance will cover death, accidents and hospitalisation.
"Currently, the government spends vast sums of money on medicines and hospitalisation for foreign workers," he added.
Another issue discussed at the meeting was the claim by Indonesian maid recruiting agents that the payments to them were insufficient.
Radzi said the Indonesian Minister also raised the alleged high-handed action of Rela members against foreign immigrants.
He said Erman requested that Indonesians who were under suspicion by Malaysian authorities be treated humanely.
33 sue bank over losses
17 May 2007, By The Star
KUALA LUMPUR: The hirers of 33 Public Bank Bhd safe deposit boxes who lost their valuables when the bank's Seri Kembangan branch was burgled last year are seeking at least RM5mil in damages.
The group, comprising depositors aged 25 to 65, filed a negligence suit against the bank at the High Court here yesterday through the firm of Tan Kim Soon & Co.
In the suit, the plaintiffs claimed that Public Bank had failed to fulfil its fundamental obligation because its branch's premises was broken into by unknown persons and nearly all the contents of the safe deposit boxes were stolen.
Among those items, the plaintiffs said, were irreplaceable items that were no longer available in the market because they were antiques or family heirlooms.
In the suit, the lowest amount sought by an individual depositor was RM11,516 while the highest amount sought was RM921,000.
The plaintiffs, who included a Chinese national, claimed they did not know the actual date of the heist but believed it happened between Oct 21 and 25 during the Deepavali and Hari Raya Puasa break.
They said they were only notified of the break-in when the bank's officer telephoned them on Oct 25.
The group contended that the bank was negligent because it had failed to implement a good security system with a warning system linked to the nearest police station in the event of a break-in.
The plaintiffs are seeking a total of RM5.076mil in special damages for the items lost apart from general and aggravated damages, costs, interest and other relief deemed fitting by the court.
At the Jalan Duta court complex lobby, the group's spokesman Brandon Ng, who is also a plaintiff in the suit, said he was disappointed with the attitude of the bank.
“What took place was beyond our imagination of probable occurrence, as the bank's premises are said to be 'impenetrable' or 'unbreakable' or 'infallible' or had portrayed such an image,” he said.
Ng also described the RM10,000 settlement offered by the bank as a “figure without merit.”
Puspakom Inspection For Used Cars From July 1
16 May 2007, By BERNAMA
PUTRAJAYA -- The government has made it mandatory for used cars to undergo inspection at the Computerised Vehicle Examination Centre (Puspakom) before ownership change can be made, effective July 1.
Transport Minister Datuk Seri Chan Kong Choy said the inspection was necessary to ensure that the vehicles were roadworthy and legally acquired.
He said the move was made because the number of problematic vehicles was increasing every year where 2,368 vehicles out of the total of 191,582 examined in 2004 had failed the inspection, while in 2005, the number that failed was 4,062 out of 403,992 vehicles examined and in 2006, there were 4,629 vehicles that did not make the grade out of the 297,685 vehicles inspected.
"Inspection by Puspakom can prevent vehicles that had been cut and rejoined from being transferred to another owner and used on the road.
"It can ensure that only vehicles that are safe are being used on the road and support efforts to reduce the rate of traffic accident," he told reporters here.
Chan said vehicles that had passed the inspection would be issued with a special certificate which was valid for 14 days only to enable ownership transfer to be made at any Road Transport Department (JPJ).
A RM30 fee would be charged for each inspection to ascertain the identity and physical condition of the vehicle concerned.
For vehicles whose registration had been cancelled, he said the owners could claim the vehicles concerned for disposal.
He said Puspakom had 64 branches throughout the country and planned to open 10 more branches this year.
14 Stolen Cars Worth RM1.2 Mln Seized
11 May 2007, By BERNAMA
KUALA LUMPUR -- Police believe they have crippled two car-theft syndicates that were active in the Klang Valley following two raids in the city last month.
The first raid was conducted at Putra Permai, Serdang, on April 24, while the second at Taman Seri Cempaka, Ulu Pudu, on April 30.
Fourteen cars worth RM1.2 million, several fake plate numbers and road tax discs, key duplicating machines and pistols were seized, Kuala Lumpur acting police chief SAC I Zulhasnan Najib Baharuddin said.
Police also arrested seven men and two women, aged between 20 and 35. They are under 14-day remand since April 30 for investigations.
"Members of the syndicates are believed to have stolen 52 cars worth RM4 million but police have only recovered 14 of them," Zulhasnan told reporters here today.
He said they stole the cars from shopping complex carparks by first switching off the alarms. After opening the door using a thin iron sheet, they switched on the engine using starter wires.
There were also cases where they stole the car at gun-point, he said.
"The stolen cars were then taken to an isolated place where the ignition keys were duplicated - a process that took only 45 minutes. The cars were sold for RM1,000 to RM5,000 each," Zulhasnan said.
He advised the public in possession of stolen vehicles to surrender them to the police because it was crime to keep stolen items.
Safeguard travellers, says Ng
11 May 2007, By The Star
PETALING JAYA: The tour and travel industry should follow Hong Kong in setting up a fund to compensate customers of travel firms that go bust, said Deputy Finance Minister Datuk Dr Ng Yen Yen.
“Tour agents contribute to the fund and should one of them go bust, customers can claim from that fund,” she said adding that the Tourism Ministry should seriously look into this.
She was commenting on the case of two directors of Excellence Holidays Sdn Bhd, Chan Kean Mun and his ex-wife Chong Suk Yen, who are believed to have absconded after the company went bust.
The duo are said to have fled with at least RM500,000, being proceeds from the sales of tickets and travel packages during the Matta Fair in March.
Chan is believed to be in hiding in China while the whereabouts of Chong is not known.
Scores of people had lost money paid in advance for tour packages to locations like Europe, China and Hong Kong.
It was reported that Excellence Holidays recorded over RM74mil in turnover in 2005 and was one of the big boys in the industry.
Dr Ng said there was no tourism insurance product to protect customers when a tour agency goes bust.
“There are many reasons why a company goes bust and insuring a company against bankruptcy would be like insuring against the company’s character,” she said when contacted yesterday.
She said that if such a policy were allowed here, it would have to be for all sectors, but added that there was nothing stopping tour companies from insuring themselves through foreign firms.
City Commercial Crime chief Asst Comm Mohd Aris Ramli said police would seek the assistance of their regional counterparts to track down the two directors.
Piracy In Melaka Straits Dropped By 99 Percent
10 May 2007, By BERNAMA
KUALA LUMPUR -- There was only one case of piracy reported in the Straits of Melaka in the last seven months, Chief of Defence Forces, Jen Tan Sri Abdul Aziz Zainal said today.
He said the drastic drop was due to the cooperation between Indonesia and Malaysia under the Sidang High Level Committee Malaysia-Indonesia (HLC MALINDO).
"The report that we received on the incident during the last seven months was a small one. I believe and give an assurance that the HLC is a relevant forum," he told reporters after chairing the third HLC MALINDO meeting here.
Abdul Aziz also said the piracy cases dropped by 99 percent.
He said both countries also stepped up their air-surveillance (eyes-in-the-sky) to ensure tighter security.
Meanwhile, on illegal logging along the border of the two countries, he said military posts along the border would be increased.
Tax perks for companies that celebrate Merdeka
9 May 2007, By The Star
KUALA LUMPUR: Companies can apply for tax deductions for money spent on this year’s Merdeka celebrations, said Culture, Arts and Heritage Minister Datuk Seri Dr Rais Yatim.
“They can claim for articles bought like flags or even projects they carry out as long as they have the receipts and proper documentation for my ministry’s verification. We have the support and agreement of the Finance Ministry on this,” he said.
Dr Rais announced this during a briefing to the media here yesterday on the Government’s programmes and activities to mark the country’s 50th anniversary of Independence.
He said that so far, 700 companies that had pledged their support for and participation in the celebrations would enjoy the tax deductions and urged others to join in. There was no cap to the deductible amount but the companies must spend the money before Aug 31 this year, he later told The Star.
Dr Rais, who chairs the national Merdeka celebrations steering committee, made a plea to all citizens to take part in the celebrations and urged them to fly the national flag.
He added that this year’s celebrations would pay tribute to the nation’s war veterans, the five prime ministers and the 13 kings.
“I also appeal to heads of all media companies to give publicity and instil the spirit of Merdeka in our people,” he said.
The minister said the official celebrations would kick off with the launch of the “Fly the Jalur Gemilang” campaign on Aug 17 in Malacca. On Aug 24, a nationwide programme would be held in which Malaysians of different faiths would pray for the nation.
The Ambang Merdeka on Aug 30 will see the re-enactment of the ceremony in which the Union Jack was lowered for the last time and the Malayan flag raised for the first time exactly 50 years ago at Dataran Merdeka here.
And as always, the traditional National Day parade will be held on the morning of Aug 31, also at Dataran Merdeka.
Dr Rais revealed that on the night of Aug 31, Tunku Abdul Rahman’s moving declaration of Independence would also be re-enacted at Merdeka Stadium.
The final event to close the celebrations will be held on Sept 10 in Kuching.
Johor cops to put brakes on car thefts
25 April 2007, By The Star
JOHOR BARU: Police are in the midst of a war on vehicle thieves and the score so far is two major gangs busted, 12 suspects nabbed and 15 vehicles recovered.
Johor Baru (North) OCPD Asst Comm Ruslan Hassan said police would not allow vehicle thieves to run rampant in the city.
“They are not welcome here. Their time is up and we are coming to catch them,” he said, adding that police were determined to make the state capital a safer city for the public.
In an operation on March 3, police raided an oil palm estate in Gelang Patah and arrested four suspects, aged between 17 and 31, including an Indonesian woman from Kalimantan.
“We seized nine lorries and a car at an oil palm estate. The vehicles were reported stolen in Ulu Tiram, Kangkar Pulai, Senai, Plentong and Tampoi,” said ACP Ruslan.
Among the vehicles recovered were four trailers, a Daihatsu Delta lorry, two Hicom lorries and a Honda Civic car.
Police believe they have solved seven vehicle theft cases with the arrest of the suspects.
1,200 ‘kereta potong’ found
20 April 2007, By The Star
PETALING JAYA: The Computerised Vehicle Inspection Centre (Puspakom) detected 1,200 “cut-and-joined” cars (kereta potong) in the first three months of this year, compared with a total of 4,629 found last year.
These vehicles, of which an average of 20 are found a day, were detected when they were taken to Puspakom centres nationwide for inspection before they could be sold as used cars.
“The number of ‘half cut’ cars on the road is alarming. There is a great danger of using such vehicles. They not only pose a danger to the drivers, but also to other road users,” said Puspakom chief executive officer Datuk Salamat Wahit.
In 2003, Puspakom found 521 such cars during routine inspections. The figure escalated to 2,368 in 2004, followed by 4,062 in 2005.
He said most of the “half-cut” vehicles were fitted with cannibalised parts and had tampered chassis numbers.
All used cars are required to undergo the Puspakom inspection if potential owners require a bank loan to buy them. However, the ruling does not apply to vehicles bought with cash.
Under the Road Transport Act, cannibalised parts are deemed illegal, and cars found fitted with such components on the floor and roof can be sealed and have their registrations cancelled by the Road Transport Department.
Salamat said Puspakom had proposed to the Government to make it mandatory for all used cars to be inspected by Puspakom prior to transfer of ownership to detect “cut-and-joined” vehicles.
Yesterday, Puspakom also launched a free 10-point vehicle inspection scheme for motorcars and motorcycles at 31 of its branches and centres nationwide.
The free inspection, said Salamat, was in conjunction with Global Road Safety Week from April 23-29.
“The inspection is to determine the safety and problems faced by the vehicle,” Salamat said, adding that the checks would include engine, chassis number and the undercarriage.
Other tests are for smoke emission, slide-slip to determine the vehicle’s optimum road handling, suspension, brakes, speedometer and headlights. Defect tests will also be conducted to determine the vehicle’s roadworthiness.
Revised Capital Framework To Give More Protection To Depositors
18 April 2007, By BERNAMA
KUALA LUMPUR -- Bank Negara Malaysia (BNM) will be issuing revised capital frameworks for the banking institutions and insurers to promote greater protection for the various stakeholders of the respective sectors, particularly the depositors and policy holders.
Under the new framework for the respective industries, the board of directors of the banking institutions and insurers are expected to play a greater role in enhancing the robustness of risk management infrastructure and market conduct governance, said the central bank in a statement Wednesday.
The capital framework for the banking institutions, based on the standardised approaches under Basel II, will be effective from Jan 1, 2008.
The standardised framework sets capital requirements by assigning predetermined risk weights to the various types of exposures.
Banking institutions that have made significant progress in developing robust internal rating standards would be given the flexibility to adopt Internal Ratings-Based (IRB) approach in 2010 without having to comply with the standardised framework, said BNM.
Meanwhile, the revised capital framework for insurers will be effective from Jan 1, 2009. Insurers with the capacity to adopt the framework earlier will be given the flexibility to migrate to the framework in 2008.
BNM said the framework will further enhance the existing solvency framework by establishing more transparent and risk-adjusted capital and valuation requirements that reflect all major financial risks of insurers.
"This is to ensure that the capital position of individual insurers are at levels that commensurate with their risk profiles."
The enhanced framework would also accord greater flexibility and relaxations for insurers in managing their investments.
This revised capital framework for both the banking institutions and insurers will be implemented on a trial run basis beginning this month.
The two revised frameworks would be complemented by a supervisory review process by BNM and an enhanced disclosure requirement on the capital strengths of the banking institutions and insurers, it added.
The revised frameworks are also part of efforts to ensure that the prevailing regulatory framework effectively takes into account the rapidly changing environment faced by the financial industry and the more complex risk profiles of the financial institutions arising from the offering of more sophisticated products and services.
Bank Negara said there had been extensive consultations with the banking and insurance industries to ensure that the revised capital framework took into consideration domestic market conditions and practices and was consistent with best global standards and principles.
Vehicle Sales Down 17 Percent In March 2007
18 April 2007, By BERNAMA
KUALA LUMPUR -- Vehicle sales continued to decline in March this year, recording 38,619 units compared with 46,306 units in the same month last year.
The Malaysian Automotive Association (MAA), in releasing the figures Wednesday, attributed the lower sales performance to the higher volume in March 2006 due to the pre-National Automotive Policy (NAP) announcement.
Year-to-date, vehicle sales declined by 15 percent to 104,950 units from 123,952 units, the association said in a statement.
However, vehicle sales in March 2007 improved by 7,331 units or 23 percent compared to the previous month, MAA said.
It cited the full working month and slight easing of hire purchase financing as factors for the improved sales figure.
Of the vehicles sold in March 2007, passenger cars accounted for 35,159 units and commercial vehicles for 3,460 units, the association said.
In terms of production, total industry production in March 2007 dropped to 37,280 units from 52,978 units in the same period last year, MAA said.
Of this, passenger cars accounted for 34,210 units and commercial vehicles for 3,070 units.
Production in the first three months of this year saw 83,062 units of passenger car and 9,084 units of commercial vehicle, providing a total of 92,146 units as against 141,484 units in the same period last year.
On the outlook for April 2007, MAA said the sales volume is expected to be maintained.
Bank Negara Keeps A Constant Eye On Bank Charges
18 April 2007, By BERNAMA
KUALA LUMPUR -- Bank Negara Malaysia always monitors financial institutions to ensure that their fees and charges do not burden customers, the Dewan Rakyat heard.
Finance Ministry parliamentary secretary Datuk Seri Dr Hilmi Yahaya said that since February 2005, these institutions must offer basic savings and current accounts to Malaysian citizens and permanent residents.
"Account holders are eligible for 14 free transactions a month including ATM cash withdrawals as well as two interbank GIRO transactions at a minimum charge of 50 sen each," he said in reply to Datuk Seri Tiong King Sing (BN-Bintulu) during Question Time.
Tiong had asked whether the ministry endorsed the practice of local banks in charging for ATM cash withdrawals.
Dr Hilmi said Bank Negara has laid out the principles and guidelines to ensure that banks do not impose charges or payments at their whim.
To Tiong's supplementary question on how to overcome excessive bank charges especially for internet transactions, he suggested that people stick to the basic savings and current accounts so that they only pay for services that exceed the limits set.
Dr Hilmi said banks normally impose high charges only for the corporate sector which is involved in large transactions and not for individual customers.
"Regarding internet banking, banks have invested heavily in this so it is only fair for them to impose high charges, especially when most of the users are from the corporate sector," he added.
Auto Industry Continues To Face Difficult Business Condition
17 April 2007, By BERNAMA
KUALA LUMPUR -- The automotive industry continues to face a difficult business condition, with little sign of recovery, according to a survey by the Malaysian Institute of Economic Research (MIER).
The low trade-in values, tighter loan requirements, and higher interest rates continued to be negative factors affecting the industry, MIER said.
Although the Automotive Industry Index turned around marginally in the first quarter of 2007, it is still far below the threshold level of 100 points, the institute said in a report released Tuesday.
"Given the depressing performance in 2006, the auto sector can chart some growth if it can do just slightly better than last year," said MIER which conducted the Automotive Industry Survey.
"Structurally, the increasing competition in the auto market has led to a faster depreciation rate for second-hand cars," the institute said.
"Over time, consumers have to accept the fact that they could lose money replacing their cars for new ones," it added.
MIER said the survey found that it will take awhile before consumers adapt to the higher living costs and the faster depreciation value of cars.
"In the meantime, auto sellers could tempt consumers by coming out with appealing new models at affordable prices, now that ringgit has strengthened somewhat," it said.
Patch-up cars - Scam involves import of luxury 4WDs without APs
17 April 2007, By The Star
KLANG: The Customs Department has stumbled upon a scam involving the import of luxury 4WD vehicles without the use of approved permits (APs), when its officers raided a potong kereta warehouse in Sungai Puloh, off Kapar, yesterday.
The department’s preventive unit seized 33 chassis, bodies, engines and other parts belonging to Toyota, Honda, Mitsubishi and Land Rover vehicles.
Selangor Customs director Datuk Abdul Razak Yaacob said initial investigations found that the parts belonged to used 4WD vehicles bought from Japan whose parts were shipped here in different consignments to elude detection.
“We also found that they smuggled in the chassis, declaring them as engine components, as chassis parts need APs to be imported.”
He said the dismantled parts, marked according to the vehicles, were reassembled here after a buyer has been secured.
He said the reassembled vehicles were sold for as low as RM45,000.
The raid was held after the department received a tip-off that the warehouse had imported second-hand car chassis without proper documentation and APs.
Abdul Razak said they believe more people could be linked to the scam. He also said the potong kereta outlet had been in operation importing car parts from Japan since last July.
“We don’t know how many of these vehicles have been reassembled and put on the road. We urge anyone who may have bought them from this potong kereta outlet to assist us in the investigation.”
A source told The Star that such vehicles could be put back on the road as second-hand ones using details and registration of condemned or totally wrecked automobiles.
In yesterday’s raid, Customs found parts worth RM1.5mil.
Two workers at the warehouse were also arrested.
Malaysia remains world's 19th largest exporting country
16 April 2007, By New Straits Times
MALAYSIA maintained its position as the world's 19th largest exporting country, with total exports of merchandise trade valued at US$161 billion (RM555.4 billion) in 2006.
This represents a 1.2 per cent share of the total world exports and an annual growth of 14 per cent, the World Trade Organisation (WTO) said in its International trade report for 2006.
Malaysia was also ranked 19th largest exporting country in 2005 but its total exports were valued at US$140.9 billion (RM486.1 billion) at that time, which accounted for 1.4 per cent of the world's exports and an annual percentage change of 11 per cent.
In terms of imports of merchandise trade, Malaysia improved its position from 24th largest importer in 2005, to 23rd last year.
Malaysia's total imports surged to US$131 billion (RM452 billion) last year from US$114.6 billion (RM395.4 billion) recorded in the previous year.
The country's total imports saw a 14 per cent annual change in 2006. It also registered a 14 per cent annual change in 2005.
According to the WTO, if the figures were to exclude the European Union countries, Malaysia was ranked at 13th and 16th largest exporting country of merchandise trade in the world in 2006 and 2005 respectively.
Against other Asian exporters of merchandise goods, Malaysia was placed eighth behind leader China, Japan, South Korea, Hong Kong, Singapore, Taiwan and Saudi Arabia.
It also placed eighth in terms of being the largest importing countries after China, Japan, Hong Kong, South Korea, Singapore, Taiwan, and India.
In terms of leading exporters and importers in world commercial services trade for last year, Malaysia was placed among the top 30 countries.
It was ranked 30th as the world's leading exporter of commercial services in 2006, with exports of such services valued at US$21 billion (RM72.5 billion) during that year.
With imports of commercial services valued at US$23 billion (RM79.35 billion), Malaysia was ranked the 29th largest importer of such trade services last year.
Besides Malaysia, other Asian trading powers which made it to the top 30 of the largest exporters of commercial services were Japan, China, India, Hong Kong, Singapore, South Korea, Taiwan, and Thailand. These nine and Indonesia are also listed as the world's top 30 importers of commercial services last year.
Gang smuggling stolen cars busted
28 March 2007, By New Straits Times
PORT KLANG: Police believe they have smashed a syndicate smuggling stolen four-wheel-drive vehicles out of the country with the arrest of seven suspects over the past month. The arrests followed the recovery of eight such vehicles, worth about RM1.5 millon, on Feb 16 by Westport auxiliary police.
The vehicles — seven Toyota Hilux pickup trucks and a BMW X5 reported stolen around the country between Jan 22 and Feb 11 — were found in containers before they could be loaded onto a ship bound for Batam.
The shipping manifest for the containers had indicated that they contained "furniture".
Klang police chief ACP Rodwan Mohd Yusof said police arrested the suspects, including a 28-year-old woman who worked as a shipping co-ordinator at a private company, at separate locations throughout Klang.
He said four people were now being sought to assist in police investigations into the syndicate which is believed to have been in operation since September. They are:
Muhamad Razif Haris, 27, of Sg Bertek, Klang; Darma Suria Risman Saleh, 25, from Pangsapuri Sireh Junjung, Port Klang; Abdul Latif Jantan, 28, of Taman Kem, Port Klang; and, Rosman Aman, 31, from Pangsapuri PKNS, Port Klang.
Those with information on their whereabouts should contact Insp Jagjeet Singh at 03-33712222.
Car theft ring smashed
23 March 2007, By The Star
SHAH ALAM: Selangor police have crippled a car theft syndicate with the arrest of nine people, including two women, and have recovered nine stolen vehicles and a pistol from one of the suspects.
At least 10 car thefts in the Klang Valley could be solved with the arrests, deputy police chief Senior Asst Comm (I) Mohd Noh Kandah said.
He said the first arrest was made in Subang Jaya on March 8 when police nabbed the driver of a stolen car and found an assortment of tools and keys along with road tax stickers.
In a follow-up operation, police raided a house in the same area seven hours later and detained six men and two women, aged between 20 and 32.
“We recovered a pistol and nine cars – a Proton Satria, three Toyota Wish, a Perodua Kenari, a Proton Waja, a Proton Putra, a Nissan Sentra and a Perodua Kancil,” he said, adding that the suspects could have used the gun to rob.
SAC Noh said members of the syndicate would usually steal cars parked in front of houses after deactivating the vehicles’ alarm system.
Selangor police, meanwhile, have solved at least 24 trailer-hijacking cases in the Klang Valley following the arrest of seven men in Pandamaran on March 3.
SAC Mohd Noh said a team of police raided a storehouse in Kampung Pandamaran, Batu Tiga, and found four containers with plastic resin worth RM358,104. They had been reported missing on Feb 24.
“Our investigations show that 12 people were responsible for the crime. Five others are still at large,” he said.
SAC Mohd Noh said police had also solved 24 lorry hijacking cases this year with the recovery of valuables, including fabric, plastic, soap, air-conditioners, meat products, milk powders and copper, all worth about RM10mil.
Welder caught up in insurance fraud
22 March 2007, By The Star
JOHOR BARU: He has been making an honest living in Singapore for the best part of eight years but his world turned upside down after he discovered someone had impersonated him in an insurance fraud.
Local welder Quan Tek Ming, 51, discovered the scam after his car insurance company informed him several days ago that he was supposedly responsible for an accident in Subang Jaya three years ago.
However, the most shocking fact was that an unknown individual posing as him had lodged a police report confessing to having caused the accident.
“I thought it was a bad dream when I received the letter from the insurance company. They informed me that another party was asking for compensation for the damage to his vehicle,” he said, adding that he has not been to Subang Jaya for the last 10 years.
Quan has since explained the situation to the insurance company's executives but they were not very cooperative.
The other party is asking for the maximum amount of some RM10,000 and Quan stands to lose his No Claim Bonus (NCB).
The insurance company has even given Quan a copy of the police report and he claimed that it was a false report.
“The report was not even complete and it did not even have my identity card number,'' Quan said at a press conference organised by Bandar Baru Tampoi MCA chairman Michael Tay here yesterday.
Tay said he would write a letter to the insurance company asking them to cancel the claim by the unknown party as the documents were not sufficient for such an action.
19-year Rise In Life Expectancy For M'sians Within 50 Years
21 March 2007, By BERNAMA
KUALA LUMPUR -- The average life expectancy for Malaysians has risen to 74 years now compared with 55 years during the country's independence, said Health Ministry Parliamentary Secretary Datuk Lee Kah Choon.
He said the government was satisfied with the achievement because it showed that the standard of health for Malaysians had improved.
"Generally, the government is satisfied with the present status and will continue to raise the standard of health in the country to ensure a longer life expectancy," he said at the Dewan Rakyat sitting, here Wednesday.
He was responding to a question from Tan Sri Dr Ting Chew Peh (BN-Gopeng) who wanted to know the life expectancy for Malaysians according to race and whether the government was satisfied with the existing average life expectancy.
Lee said that the average life expectancy for men was lower at 71.5 years compared with 76.2 years for women.
He said that the life expectancy for men among the Indian community was the lowest at 67.4 years, followed by the Bumiputeras (70.4) and Chinese (73.6).
As for the women, he said the Chinese community had the highest life expectancy at 78.8 years, followed by the Indians (75.4) and Bumiputeras (74.8).
Stolen cars to be shipped back from HK
16 March 2007, By New Straits Times
KUALA LUMPUR: After a two-year probe and much backroom negotiations, luxury cars worth more than RM1.5 million that were stolen here and recovered in Hong Kong are on their way back.
The cars including BMWs and Mercedes Benz are expected to arrive over the weekend.
This follows a concerted effort by a team led by Deputy Criminal Investigation Department director Datuk Syed Ismail Syed Azizan that met insurers, police and Customs officials in the former British colony.
Negotiations in the matter which saw cars stolen here, taken to Singapore and then shipped to Hong Kong for what is believed to be eventual sale in China ended last week.
It is understood that the cars were meant for the increasingly affluent market in southern China. The vehicles were recovered in Hong Kong in 2005.
Investigators learnt that forged importation and Customs clearance documents were used to facilitate the transshipment of the stolen vehicles.
This recovery has once again reaffirmed the belief among Malaysian police that car theft-cum-smuggling syndicates had their sights on newly-emerging economies.
Industry sources said the recovery of the cars posed the question of what would happen now to the vehicles.
This is because the owners have had their insurance policies honoured by insurance companies.
"These were vehicles which were stolen more than two years ago. Now additional costs have been incurred for the repairs, freight and shipping costs which have been borne by insurers," an industry official said.
It is learnt that the authorities are trying to secure the return of stolen Malaysian vehicles recovered in Dubai.
Meanwhile, General Insurance Association of Malaysia (PIAM) executive director Lim Chia Fook said Malaysian police had recovered stolen vehicles in Singapore, Thailand, Indonesia, South Africa, Hong Kong and Dubai.
"We (however) do not have information on how many of these stolen vehicles have been smuggled out of the country," he said.
PIAM believes greater government-to-government co- operation was needed to overcome hurdles in cross-border criminal activities.
"This co-operation is essential in investigating, identifying and recovering stolen vehicles which have been taken out of the country."
Statistics show that 82,287 vehicles were reported stolen here last year.
Malaysian police and their Interpol counterparts are actively involved in investigations to recover, identify and repatriate the stolen vehicles to their country of origin.
Getting ‘kereta potong’ off roads
15 March 2007, By New Straits Times
KUALA LUMPUR: Some 200,000 second-hand cars, which are sold through cash transactions yearly, will have to undergo mandatory checks at Puspakom before ownership can be transferred.
The move, which is expected to be implemented within the next few months, is aimed at removing cut-and-joint cars or kereta potong from the road.
Last year, the Transport Ministry estimated about 50,000 such cars were on the road nationwide.
The mandatory checks will put a stop to car owners selling their worthless vehicles to others, a source from the ministry said.
"They are also endangering others because the cars are unsafe."
Last year, Transport Minister Datuk Seri Chan Kong Choy had announced that all used cars were required to undergo Puspakom inspection before banks could approve loans for their purchase.
However, the move saw an increase in the number cash transactions.
The ministry then decided to make it mandatory for all cars, including those that do not require bank loans, to go through the checks.
"At present, cars that do not require bank loans escape Puspakom checks," said the source.
The move is timely as people still bought cars that were below the market price.
Citing an example, he said one could get a luxury car at RM20,000 to RM30,000 less than its normal price.
Chan had stressed that the government was serious in weeding out kereta potong, which are known to split into two upon a collision.
He also advised second- hand car owners to take their vehicles to Puspakom to be inspected as this would prevent them and their family members from being seriously injured in the event of an accident.
Kereta potong is made by cutting and joining sections of two cars of the same model.
This compromises the structural integrity and safety of the cabin as the joint would split instead of crumpling in an accident.
Puspakom conducts a thorough check for anyone who wants to know if their car is a half-cut vehicle for RM40.
Teenage bike thieves held
15 March 2007, By New Straits Times<
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