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Wednesday, 31 July 2013

Fitch downgrades Malaysia due to high government debts and spending


PETALING JAYA: Fitch Ratings, after cutting Malaysia’s credit rating outlook to “negative”, sending the stock market and the ringgit reeling, has said it is more likely to downgrade the country’s rating within the next two years on doubts over the Government’s ability to rein in its debt and spending.

The Government, in response to Bloomberg News, rebutted such concerns and said it was committed to fiscal responsibility, stressing that it would rationalise subsidies and broaden the tax base.

It said the economy was fundamentally healthy, with strong growth and foreign currency reserves.

Standard & Poor’s had last week, however, reaffirmed its credit rating on Malaysia and said it might raise sovereign credit ratings if stronger growth and the Government’s effort to reduce spending resulted in lower-than-expected deficits. “With lower deficits, a significant reduction in Government debt is possible,” it said.

It might lower its rating for Malaysia if the Government fails to deliver reform measures to reduce its fiscal deficits and increase the country’s growth prospects.

“These reforms may include implementing the Goods and Services Tax or GST, reducing subsidies, boosting private investments and diversifying the economy,” said S&P.

The downgrade in Malaysia’s rating outlook by Fitch on Tuesday took a toll on the capital markets, and sent the ringgit to a three-year low against the US dollar.

The FTSE Bursa Malaysia KL Composite Index closed 1.25% or 22.46 points lower at 1,772.62, and the ringgit fell to RM3.2425 against the greenback, its lowest since June 30, 2010.

The bond market, where foreign shareholding recently was at an all-time high, also saw yields climb dramatically. The yield for the 10-year tenure for Malaysian Government Securities rose seven basis points yesterday to 4.13%. The yield for the 10-year Government bond has climbed 77 basis points since April 30.

In a conference call yesterday afternoon, Fitch Ratings warned that a downgrade in Malaysia’s credit rating was “more likely than not” over the next 18 to 24 months. It highlighted Malaysia’s public finances as its key issue for the rating weakness.

Its head of Asia-Pacific sovereigns Andrew Colquhoun said over the phone that there was a concern over the Government’s commitment to fiscal consolidation after the May general election (GE).

“It is difficult to see the Government pressing forward with any fiscal reform steps or budget reforms,” he said, adding that the rating would reverse if any action was taken.

CIMB Research, in a note by its head of research Terence Wong and economics research head Lee Heng Guie, said Fitch’s revised outlook on the country was “bad news” for the stock market.

“While we believe there will be a knee-jerk selldown, the average lifespan for a rating outlook is about 18 to 24 months before a downgrade is enforced, giving Malaysia time to prevent that,” the report said.

They said the Fitch downgrade was a warning to Malaysia to improve its macroeconomic management, and was of the opinion that the Government had time to get its house in order.

“We believe the authorities will take the warning seriously and move to address any weaknesses,” they noted.

Both Wong and Lee, however, felt that any weakness in the stock market was an opportunity for investors to accumulate shares.

“The depreciation of the ringgit benefits exporters, such as plantation, rubber glove and semiconductor players, as well as those with foreign currency revenues,” they said.

Meanwhile, Areca Capital chief executive officer Danny Wong told StarBiz that foreign investors might use the downgrade as a reason to exit from Bursa Malaysia.

“There is a concern that the downgrading may affect foreigners to exit Malaysia in a big way. Hence, it created a ‘knee-jerk’ reaction to the market.

“However, I think the impact would be minimal on the equity market but the concern is on the bond market because of the 33% foreign ownership,” he said, adding that the outlook by Fitch was earlier than expected since the 2014 budget is set to be announced in two months’ time.

RAM Holdings Bhd chief economist Dr Yeah Kim Leng said the cut in the outlook by Fitch had rattled the market, but feels the country’s fundamentals such as gross domestic product (GDP) growth, high foreign reserves and current account surplus would soothe worries over any rating concerns.

“I believe the Government will pursue its target to reduce the budget deficit by 4% this year, or at least show a sign of reduction.

“However, Malaysia’s current account balance will narrow further by end-2013 due to a weakening in exports, although a deficit account is unlikely to happen,” he opined.

High debt levels have been a growing concern in recent years in Malaysia, as the Government debt-to-GDP ratio is among the highest in South-East Asia. At 53.5% as at the end of last year, it is higher than the 25% in Indonesia, 51% in the Philippines and 43% in Thailand, noted a report by Bloomberg.

The ratio for Malaysia is almost to the debt ceiling limit of 55%.

Fitch, it its notes accompanying its decision to downgrade Malaysia’s credit outlook, said the country’s budget deficit had widened to 4.7% of GDP in 2012 from 3.8% in 2011, led by a 19% rise in spending on public wages ahead of the May GE.

It believes that it will be difficult for the Government to achieve its 3% deficit target for 2015 without additional consolidation measures.

By INTAN FARHANA ZAINUL intanzainul@thestar.com.my

Tuesday, 30 July 2013

Crime Watcher shot, banker killed; are Malaysia sliding to a state of lawlessness?

ANOTHER day, another shooting. It seems as if we are becoming as dangerous as some South American nations where gun violence seems to be the norm.

It’s just not confined to one or two areas but is happening across the nation.

Three shootings in two days. A 25-year-old man, Jasrafveendeerjeet Singh, was shot in front of a restaurant in Ipoh at 10.15pm. Another man, G. Santhana Samy, 30, was wounded in the thigh when he stopped at a traffic light in Butterworth at 8.30pm.

And in Kuala Lumpur, Arab-Malaysian Development Bank founder Hussain Ahmad Najadi died from multiple bullet wounds. He was shot in Lorong Ceylon while walking with his wife to his car in broad daylight.

These incidents followed the murder attempt of MyWatch chairman R. Sri Sanjeevan in Seremban on Saturday who was shot when his car stopped at the traffic lights.

The police response: the setting-up of yet another “high-powered” task force to investigate the crime. Actually, we have lost count of how many high-owered or high-level committees and task forces have been set up to investigate the various shooting crimes.

In fact, we are still waiting for some indication of the progress made by the task force set up in May to hunt down those responsible for the spate of shooting cases then, including the murder of Customs deputy director-general Datuk Shaharuddin Ibrahim.

Federal CID director Comm Datuk Seri Mohd Bakri Zinin had announced that the special CID task force, headed by Federal principal assistant director of Serious Crime (D9) Senior Asst Comm Datuk Huzir Mohamed would identify and arrest the criminals.

At the same time, Penang police have also set up a separate task force to probe a series of shootings, which left at least four people dead over the past five months.

From seemingly ordinary Joes to prominent people being gunned down, the public can’t help but wonder whether we are on a rapid slide to a state of lawlessness. The sense of insecurity and nervousness is definitely growing.

Apart from gun-toting criminals, robbers are crashing restaurants to rob the patrons en masse.

Eateries that used to operate till the wee hours are now closing early; there are way fewer people who want to risk being robbed while having supper.

Even snatch thieves have grown more vicious and brazen. They do not just grab but often slash their victims to incapacitate them, making their getaway easier.

In such a state of affairs, we are almost relieved to read of cases where the “victim” is an ATM. The thieves who hack away and drag out these cash-vending machines seem almost harmless and preferable to those who prey on people.

Undoubtedly, the police have their hands full. Theirs is no easy task with no easy solutions. So far, they are focusing on identifying weapons smugglers to try to root out the source of gun-related crimes.

But more action and arrests are what is desperately needed because the ferocity and the increasing number of assassinations are striking fear in all of us.

Our top cops may continue to try to assure us that our nation is still very safe but unfortunately, that’s just not good enough.

- The Star Says

Monday, 29 July 2013

Protect your investment in smartphones; How to handle a phone virus

Keep your Galaxy S4 well protected with this Otterbox.


High-end smartphones have become must-have items that are drooled over and lusted after whenever a new model is released. With so much marketing going on, many can’t resist the latest and trendiest smartphones.

However, in pursuit of designs which are sleeker and more ­lightweight to entice the crowd, manufacturers have compromised on the durability of smartphones.

Take for example Samsung’s latest flagship, the Galaxy S4. It’s a great lightweight smartphone with an amazing 5in screen squeezed into a sleek body.

This makes the bezel (the area between the edge of the phone and the screen) extremely small, making me worry that the ­slightest drop is going to ruin the screen. As smartphones today consist predominantly of the ­display, even the slightest damage to the screen will cost a significant amount to replace or repair.

As such, it is best to invest in a good casing for peace of mind. For me, a good casing is one that provides full protection around all edges of the phone, rather than one that looks fancy but leaves the corners of the phone exposed.

Enter the Commuter

Otterbox is a company well known for producing hard travel cases for all kinds of sensitive electronic equipment.

They have been producing a few different lines of full protective cases for most smartphone brands in the market. The Commuter series is one of their popular product lines, and here we have the Galaxy S4 version of the case for review.

More than just good looks

The casing itself is a two piece set up (three if you count the screen protector that’s included). It has a polycarbonate outer layer and a silicone inner layer which fits the S4 perfectly.

Unlike the more rugged Defender series, the Commuter is simple enough to assemble that you don’t have to read through a user manual or watch a video tutorial.

The review unit we received was an ocean blue colour. It’s a vibrant, striking colour but I’d have to say that it isn’t everyone’s cup of tea. I for one, didn’t fancy this colour.

The Commuter has flaps to cover both the audio port as well as the charging port. This is to protect the ports from dust and any other unwanted debris from entering and damaging the innards of the phone.

Build and feel

I appreciated the fact that the flap left enough room for my thick MHL adapter to be plugged in, something which was not possible with the Defender casing for another phone that I have tested.

However, at times it did feel bothersome to have to keep opening and closing the flaps, as I frequently needed access to the micro USB port to charge my phone.

I personally don’t fancy my devices being too thin, so the added bulk around the device actually made it feel better in my hand. I sometimes freak out when my pocket feels too light, only to find that my device is still in there, just that it isn’t heavy enough to be noticeable. The additional pounds that the S4 puts on with the Commuter makes its presence better felt in my pocket.

If there’s one other thing I don’t like about the review unit that I received, it is the material used for the casing. Having used other Otterbox products before, I was left a little disappointed with the texture of this Commuter casing, as it felt too cheap for its class. It gave me an impression that it wasn’t worth the price tag attached to it.

I didn’t have the heart to do any major drop tests with the device. I tried dropping the S4 from the most likely heights that a phone will be dropped from, such as when getting up from a seat as well as from a table top. As expected, the device was well protected by the casing.

Conclusion

The Otterbox Commuter is a protective case that provides full protection around the edges for your precious Galaxy S4. While it may not be the best looking casing in the market, it gives you peace of mind if you are a careless person by nature or someone who leads an active lifestyle.

However, we weren’t too fond of the way that the polycarbonate outer layer was designed as it felt a little too cheap.

While the flaps for the ports were appreciated, it did seem a little obtrusive at times.

Pros: Gives the S4 a more secure feel; protects all edges; screen protector.

Cons: Polycarbonate outer layer feels cheap; flaps for the port can be obtrusive.

Commuter:
(Otterbox)
Samsung Galaxy S4 protective case
Specifications: Silicone inner layer, polycarbonate outer layer
Other Features: Screen protector included
Dimensions (|W x D x H): 143.25 x 78.92 x 14.58mm
Weight: 45.35g
Rating: ***
Review unit courtesy of KWS
Distribution SdnBhd, www.kwsdis.com or eamil info@kwsdis.com 
- By Donovan Quek The Star

How to handle a phone virus 


Stay safe: Your phone is like your PC - only install apps that you trust

If you get a virus on your mobile phone, the best action to take is a factory reset. Most phones have this option, which returns your phone’s operating system (OS) to the state it was in when it left the factory.

With some phones, a factory reset will allow you to keep your personal data like pictures and music when resetting the OS. If not, you can also sync your phone with your PC after resetting to return your applications and data to your phone.

In the future, protect yourself against viruses by treating it like a PC — never install something you do not trust or recognise, and do not open suspicious text messages or e-mail messages.

It is also helpful to install antivirus software on to your phone, which can help prevent malware and alert you if you have been infected.

Recent data shows that Android malware has grown 580% between September 2011 and September 2012. Apple iOS malware is rarer, but it still important to protect yourself and use safe practices when connected online with your mobile device. — McClatchy-Tribune Information Services

28 Jun 2013
05 Jun 2013