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Monday, 9 August 2010

Half a million Malaysians banned from leaving country, PTPTN loan an emotional strain on grad



Half a million Malaysians banned from leaving country

By IWAN SHU-ASWAD SHUAIB
iwan@thestar.com.my

PETALING JAYA: About half a million Malaysians have been banned from leaving the country.

The 424,653 persons have been blacklisted mainly for defaulting in tax payments, not paying educational loans and also for being declared bankrupts.

Those blacklisted include high profile individuals carrying titles of Tan Sri, Datuk Seri and Datuk.

> The Insolvency Department has the bulk of those blacklisted, with 196,473 persons (46%) declared bankrupt;
> The blacklist comes from 13 government agencies, which also includes the Inland Revenue Board and the Immigration Department;

> The youngest person blacklisted is just 25.

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PTPTN loan an emotional strain on grad

I AM a recent graduate with a huge PTPTN loan hanging over my head before I can even get a headstart in the working world. My total loan amount was RM48,000. From the time I started working, I have been paying small amounts based on what I can afford but unfortunately, what I can afford is not even close to the so-called administration fees.

My opening balance for this year (after paying a chunk last year using my graduation reward cash from relatives) was RM46,964.94. On Aug 6, when I checked on my account transaction history in PTPTN’s E-FES, I was startled to see a closing balance of RM47,054.51, which is RM89.57 more than my opening balance of the year.

This would be all right if I had not made any repayment. However, from January to July, I paid RM714.94. Instead of a reduction in my balance, to my utter disbelief, PTPTN charged RM804.51 as administration fee for that same period of time.

Coming from a fresh graduate who is not even earning above RM1,900 (after EPF deductions), living in Kuala Lumpur and travelling to the city centre for work, this has put a strain on my financial and emotional health.

Recently, a report mentioned that almost half a million people have defaulted on their PTPTN loans. 
Discounting the ungrateful ones who have the money but refused to pay, those like me who are struggling to pay have been mercilessly burdened by PTPTN. During my study years, my parents often had to come up with the cash first and there were so many semesters when many of us would be barred from examinations because PTPTN had not banked in the money before the due date. There would be a long queue of students trying to get “unbarred” when the time taken could have given us more study time, reduced stress and emotional turmoil before the examination.

The administration fee imposed by PTPTN is ridiculous. Sooner or later, I may have to default on my loan, not because I don’t want to pay it but because I can’t afford to pay.

PTPTN PRISONER,
Subang Jaya

Monday December 27, 2010

200,000 borrowers default on student loan repayments

TEMERLOH: More than 200,000 out of 1.75 million National Higher Education Fund Corporation (PTPTN) borrowers have defaulted on their loans.

The loan defaulters are considered hard-core borrowers who made no effort to repay their dues even if they manage to gain employment, said PTPTN chairman Datuk Ismail Mohamad Said.

He added these defaulters also didn’t take the initiative to consult the corporation to re-schedule their repayments if they have yet to enter the job market.

Ismail said the corporation had given out RM37bil in study loans since 1997 to 1.8 million students.
“PTPTN was supposed to receive RM5bil in arrears according to its repayment schedule, but only RM2.1bil has been returned so far.

“Some borrowers are already employed but they still refuse to pay up.

“Once the Perbadanan Tabung Pendidikan Tinggi Nasional Act 1997 is amended, we will start making mandatory monthly deductions from the borrowers’ salaries next year,” he said after presenting school bags and study awards to about 200 pupils from the Kuala Krau parliamentary constituency here on Friday.

Ismail said the amendments, if passed, will give the Inland Revenue Board the power to deduct the salaries of errant borrowers.

“Errant borrowers will be blacklisted and can be taken to court if they still don’t respond to notices to repay their study loans,” Ismail said.

Earlier this month, it was reported that the PTPTN has written off RM59mil worth of study loans granted to 2,162 graduates who obtained first class degrees for the first seven months of this year.

Sunday, 8 August 2010

Hurd's HP legacy: Dell racer, IBM chaser

Man executing on another's plan

Somewhere in California, Carly Fiorina must nearly have choked to death from laughter while stumping for a US Senate seat as news of her successor's sudden departure broke following a sexual-harassment probe.

It has not been an easy five years for Mark Hurd, the former president, chief executive officer, and chairman of HP, the largest IT vendor in the world. Hurd, who took over as CEO in the wake of the topsy-turvy reign of Carly Fiorina in 2005, came in from staid NCR and made HP a little more predictable, financially. Something Wall Street and HP customers alike wanted very much.

The tough tasks of making the HP-Compaq merger work in a radically changing, post-dot-com IT environment and building up HP's software and services business — goals set by Fiorina shortly after she came into HP from the outside as president in 1999 — fell to Hurd.

Fiorina tried and failed to buy the IT consultant PricewaterhouseCoopers, eventually eaten by IBM. HP under Hurd recovered from that mistake by eating EDS in May 2008 for $13.9bn.

Over the past five years, Hurd can take credit for an improved PC business, a steady printer and consumables business, and a rationalized and growing server business where HP is now both the shipment and revenue leader. The expansive plan to turn HP into a real IT player might have been all Fiorina flair, but the execution — done with a magnifying glass, sharp pencil, and a pair of pliers — was pure Hurd.

Hurd had a reputation as a tough cost-cutter when he ran NCR, and he didn't soften any when he left Dayton, Ohio in 2005 for Palo Alto, California.

Soon after taking over as CEO in the spring of 2005, Hurd cut 10 per cent of the workforce, or 15,200 people. And in the wake of the EDS acquisition, 24,600 jobs got put on the block, and Hurd pressed for voluntary pay cuts for employees in Europe while at the same time raking in $24.2m in compensation for himself. In 2008, Hurd took in $33.9m.

HP could — and did — immediately cut pay in February 2009 by between five and 15 per cent for employees in the US during the economic meltdown. Hurd took a 20 per cent pay cut, just to show he was one of the boys. But Hurd was not hurting for cash — certainly not enough to fudge his expense reports, which is one of the reasons why he was forced to resign.

A year after Hurd came on board, HP wrested control of the desktop PC business back from archrival Dell, and a year later HP took the market-share lead for notebooks. As HP was managing to get its act together in the PC business, Dell was busy selling PCs it knew were crap and doing everything it could to keep the bags of cash coming in from Intel. Predictably, Dell's business suffered as much from its own missteps as it did from HP's resurgence.

By the math, the merged HP and Compaq should have immediately been the king of servers in terms of revenues, topping Big Blue — a feat no one had ever accomplished in the history of the systems business.

But the HP-Compaq systems merger coincided with a radical shift away from big and expensive proprietary and Unix machines and towards cheaper boxes running Unix and Linux, so it took considerably longer than planned for HP to catch up to and topple IBM.

But thanks to IBM's revenue dropping because of mainframe and Power Systems transitions and x64-based servers rebounding, HP finally bested IBM in server revenues in the first quarter of this year — nearly a decade after the Compaq deal was announced.

It's very unlikely that this will hold in the fourth quarter, when IBM should post some impressive mainframe and Power Systems sales. But anything goes for 2011, and the safe money is on HP maintaining and extending its lead on IBM in the server racket.

It will take considerably longer — how does infinity sound? — for HP's services business to catch up with Big Blue's. In its fiscal 2009 ended in October last year, HP had sales of $114.6bn, but services were only $8.9bn of that.

IBM, by contrast, had sales of $103.6bn in calendar, but $58.9bn of that was for services. And yes, Fiorina was right: HP should have bought that PwC consulting business, which generated $19.6bn in sales for Big Blue in calendar 2009.

Lesjak in charge - for now

Now, Cathie Lesjak, who has been HP's chief financial officer since January 2007, has been handed the reins that were yanked out of Hurd's hands by the HP board of directors. That's just as what happened to Bob Wayman, HP's long-time CFO, who was handed the reins to become interim CEO when the board gave Fiorina the bounce in 2005 and began the search that resulted in Hurd being brought over from NCR. Lesjak has already said she will not do the CEO job.

Lesjak will be in charge of reporting HP's financials on August 19 all by her lonesome, something she was no doubt not expecting. To try to soothe a jumpy Wall Street, HP released preliminary financial results for the third quarter of fiscal 2010 ended in July.

The company said revenues would be between $32.5bn and $32.7bn and earnings per share would come in at between $1.03 and $1.05. HP expects revenues for the full fiscal 2010 to be $125.3bn and $125.5bn, with EPS of $3.62 to $3.64. Those are some pretty tight numbers, and they show just how confident HP is in its business.

As for Hurd, there's always politics. ®

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Tweet below the law

By JOSEPH LOH
sunday@thestar.com.my

Social networking sites such as Facebook and Twitter have allowed people to easily let others know what is on their minds. But users should be careful with what they post because the laws of the land apply to cyberspace as well.

THE Internet is increasingly becoming a virtual soapbox for people to vent their thoughts – and sometimes frustrations and dissatisfaction. The proliferation of blogs, discussion groups, and more recently, social networking, have emboldened many – with the assumption that making comments from behind a screen shields them from any legal repercussion.

However, the long arm of the law extends beyond solid ground, and reaches into the virtual realm as well.
According to H.R. Dipendra, from the Malaysian Bar Council’s human rights committee, there is no distinction between comments posted on the Internet and traditional print media.

“Internet posts are subject to similar laws as that of print media, aside from the Communications and Multimedia Act 1998 (MCMC Act) and Printing Presses and Publications Act 1984.

False sense of security: People on social networking sites and blogs tend to say more than they do in real life, thinking they can do it anonymously.
 
“You have to be careful what you write, and not just post what comes off the top of your head. If you know it to be inflammatory, then you should be careful,” he says.

Eddie Law, blogger and founder of elawyer.com.my and laweddie.com.my says that the www header is not an acronym for the wild wild west.

“Some think they can post or write anything, but that is not true,” he says.

Examples of legislation (see chart) include the Sedition Act, Internal Security Act, as well as civil and criminal defamation laws – all of which have previously been invoked to bring an individual to court, most famously in the cases involving blogger Raja Petra Kamarudin.

Dipendra
 

More recently, DAP member Teng Chang Khim was summoned to appear before the party disciplinary committee for a Twitter message that read “OMG! Real culprit freed.”

Dipendra says what has happened to Teng is fascinating, but does not believe anything will come out of it.
“His statement is not defamatory as it does not specifically refer to any particular person. It is a general opinion on a general matter,” he says.

Posting news content on Internet blogs, for example, is in some way similar to what mainstream news journalists do, but Law feels that bloggers are at a distinct disadvantage.

“They do not have proper media training or resources to help them determine what they are doing is legal.”

He opines that as social networking and blogging activity is still relatively new, there is little legal precedent to follow and there are many issues yet to be tested in court.

“The wording of the MCMC Act (Section 233 and 211) is very broad, and there is a lot of uncertainty. Because it is not yet tested, you can be snagged if its wording can be defined to suit your case,” he says.

Dipendra shares a similar opinion, and believes that when the law was drafted, it was intentionally broadly-worded.
Law

“It can be of any mode, medium or application – SMS, iPad or Twitter – so long as you type out a comment and post it, you will fall within the ambit of the two sections.

“The law is broad enough to include everyone, even an innocent disseminator,” he says.
However, he does not think it is a bad law.

“It may be uncertain and ambiguous, but not bad law. It gives enforcement agencies a lot of leeway so they would have the unfettered discretion for its use. The only question is if this discretion is used fairly,” says Dipendra.

Anonymity not guaranteed

Foong Cheng Leong, from Lee Hishammuddin Allen & Gledhill’s intellectual property department, says that people tend to say more than they do in real life, thinking they can do it anonymously.

“They think they can get away with it, but they may still get caught,” he cautions.

He gives the example of the Stemlife Bhd v Bristol-Myers Squibb (M) Sdn Bhd case. The co-defendant, Arachnid Sdn Bhd, who provided website maintenance services, was ordered to reveal the names of the persons who posted disparaging remarks against the plaintiff.

However, in a separate defamation suit involving the same parties, the judge struck out the suit against Arachnid, as it had never played an active role in respect of the content of the comments posted on the website.

There was another case where the defamatory contents of a website were deleted, but the lawyers were able to find the offending page using archived pages on waybackmachine.com.

“Simply deleting the page is not a defence, as the damage may have already been done. In a way, it is like destroying the evidence,” says Foong.

However, Law says web service providers need immunity from content posted on their website, something that United States law provides for in Section 230 of its Communi­cations Decency Act.

Foong informs that a similar “safe harbour” provision is being drawn up in Malaysia, and the same kind of immunity may later be found here.

Dipendra also says that what is posted on cyberspace stays there forever.
“Something that you said 10 years ago on a website may resurface, and you may have no recollection of even writing it.”

While existing Malaysian law appears to cover cases of wayward online behaviour at the moment, there are some who feel that there is a need for the law to be reformed.

Sonya Liew of the Bar Council explains that the world is currently undergoing both a revolution and evolution at the moment.

“Just like how there was the industrial revolution before, now we are having an information revolution,” she says.

She explains that during the agrarian age, laws were formed to protect the land, and during the industrial age, to protect intellectual property with laws regarding copyright and trademarks, for example.

“Laws regarding sedition and secrets were passed many years ago, before the information revolution. But now, society has evolved beyond this,” she says, adding that the people’s expectations regarding the right to information have evolved – together with technological advances.

“The whole world now has information at its fingertips, and if you withhold information, people start to question the lack of access to it.

“People expect information, and the question is if existing laws are sufficient to provide for the needs of a modern society,” says Liew.

She notes that signs of this can be seen in the increasing call for freedom of expression and the right to information.

“Later, we will hear of even more rights that we have not even heard of before, and it may even eat into the right to privacy,” she says, explaining that this may arise as people may want to know more about government officers’ or politicians’ lifestyle – in order to reduce graft.

“Laws exist to serve society, and society does not serve the law. We have this need now, and the question is if the Government is doing enough to provide for this need,” says Liew.

Any significant legal reform on the use of the Internet is not yet on the horizon, and until then, social networkers and bloggers should be vigilant on their online behaviour.

“People should behave the same way online as they would in real life. If they do not shout and curse in public, then their behaviour should remain the same online. They should not wear a different hat in cyberspace,” says Law.

Foong succinctly describes the appropriate online behaviour with a biblical quotation – which is still as relevant today as it was 2,000 years after it was uttered.

“Do unto others as you would have them do unto you,” quotes Foong.

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