Rabu, 23 Jun 2010

Charles Santiago

Charles Santiago


FTA talks: Shift in policy bad for local players

Posted: 23 Jun 2010 02:37 AM PDT

Source: Free Malaysia Today

Wed, 23 Jun 2010 15:41

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By Syed Jaymal Zahiid

KUALA LUMPUR: The resuming bilateral Free Trade Agreement (FTA) talks between Malaysia and the European Union (EU) reflects a shift in the government procurement policy that could be detrimental to local businesses.

Government procurement was the sensitive issue that became the stumbling block in the failed initial talks between Asean and the EU but the revelation made by International Trade and Industry Minister Mustapha Mohamad in Parliament on Monday suggested otherwise.

Mustapha had said in a reply to Klang DAP parliamentarian Charles Santiago that Malaysia is prepared to study the viability of opening up its procurement policy.

“Even though the talks are still in the early stages, the meeting session between Malaysia and EU is the best avenue to study the readiness of the Malaysian government. But there have been vast changes between the current round of talks and the previous engagement.

“Malaysia now has a world-class intellectual property rights protection system while the Competition Policy is negotiable since the National Competition Bill has been passed,” said Mustapha.

Santiago contended that the language used by the minister was a far cry from the government’s position on the procurement policy when the first of round of talks collapsed.

“The government procurement policy and the intellectual property rights were the two contentious issues that caused the collapse of the first talks,” he told FMT in Parliament here.

“Now we are ready to talk again, meaning the government is ready to open up its procurement policy,” argued the first-term Klang MP.

Policy shift bad for local businesses

Santiago said any move to open up government procurement policies for fair competition is good for the economy but he warned that the shift may do more harm than good to local businesses.

Committing the government procurement policy under the FTA means opening up government contracts to foreign bidders and this may narrow the government’s “policy space”.

“In any country, you must allow some space for policy manoeuvring but if they open up the government procurement policy, it will lose its space,” said Santiago.

The Klang MP proposed that the policy be restricted to local businesses to spur domestic growth.

Email us your comments to comment@freemalaysiatoday.com


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Human Resources deputy minister Datuk Maznah Mazlan told Parliament that the government had only received a total of 77 responses from the public since March this year.

"The ministry launched its blog on March 24 this year to obtain feedback from Malaysians on the proposal to introduce minimum wages.

"Until today, the ministry has only obtained 77 responses," she said when replying to a question by Charles Santiago (DAP-Klang),

Maznah said that of the 77 responses, 70 or 91 per cent agreed with the proposal, about three per cent disagreed and 6 per cent were indifferent.

"The feedback is too small for us to implement the policy, especially in comparison with the over 11 million workers in the labour force nationwide.

"It is not representative of the number of workers," she said.

She added that the ministry would continue with its blog to obtain more feedback as well as to organise a three-party workshop in mid-July this year involving workers' associations, employers associations, academics and government agencies.

"Whatever feedback we obtain from the blog and the workshop will be used as input for the government's consideration," she said.

In a supplementary question, Charles slammed the ministry for deferring its decision to introduce minimum salaries for security personnel to 2011 although it was set to begin on July 1 this year.

"It is important for the nation. The government had decided to introduce the policy but suddenly, this was a retracted.

"This is like one step forward and three steps back. From what I have read from the news, I see that this shows that the government is afraid of the private sector, especially the security firms that have been urging the government not to introduce the policy," he said.

Charles asked if the government had the "political will" to introduce minimum wages for the country, especially in view of the New Economic Model's target of achieving a high-income status for the country.

In her response, Maznah said that the Cabinet had on January 13 this year instructed the ministry to study the proposal to introduce minimum wages.

"For your information, your accusation that we are frightened of the private sector and that we have no political will — this is just a perception typical of the opposition.

"The introduction of minimum wages involves many processes and many ministries. It involved the communication between the ministries and other important parties like the workers unions and other associations," she said.

Maznah pointed out that a single policy could not be used for all sectors.

"We need to have a proper, detailed study, which would include making comparisons to other countries as well," she said.

In another supplementary question, Dr Dzulkefly Ahmad (PAS-Kuala Selangor) asked Maznah for the ministry's plans in improving the wages of the labour force.

"About 40 per cent of the labour force earn less than RM1,500 monthly and 75 per cent of them are the bumiputras from Sabah and Sarawak," he said.

Maznah said that the 10th Malaysia Plan programmes provide ways and means to improve the welfare of the labour force.

"We are also looking into ways and means on how to lessen our dependence on foreign labour as well as how to improve the skilled workers force.

"Our target is to raise our 25 per cent of skilled workers in the workforce to at least 50 per cent," she said.


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