BFM: Can We Afford GE15 Right Now

There have been increasing chatter about GE15 in Malaysia. Many within UMNO are reportedly pressuring Prime Minister Ismail Sabri to call for a general election, with one source interviewed by the Malay Mail claiming that “the consensus of the top leadership of the party is that GE15 should be held sooner rather than next year.” Consequently, experts have began weighing the pros and cons of holding an election this year, especially given the last two years of regular pandemic-related lockdowns in Malaysia. Segi Enam Advisors Khor Yu Leng was invited to BFM to give her thoughts on the matter: Can We Afford GE15 Right Now

There have been calls from within UMNO for parliament to be dissolved and GE15 to be held as soon as possible. However, Prime Minister Datuk Seri Ismail Sabri has said that with inflation and the rising cost of goods, this isn't the right time. We look at where we are in our economic recovery and whether initiating an election could have repercussions.

Image Source: Gwoeii, Shutterstock; produced by: Natasha Fusil; presented by: Lee Chwi Lynn, Sharmilla Ganesan

BFM: The S in ESG in Malaysia is Sorely Lacking

On 13 May, the Malaysian government announced that the US through its Customs Border Protection (US CBP) has agreed to set up a joint working committee to address ht issue of forced labour in Malaysia. While a welcome piece of news, questions naturally arise on whether the committee will positively affect Malaysia’s labour challenges in a meaningful way. Segi Enam Adviser principal Khor Yu Leng was invited on BFM to discuss the matter: The S in ESG in Malaysia is Sorely Lacking

Following the announcement to setup a Malaysia-US working committee on labour issues, we ask Khor Yu Leng, Political Economist, Segi Enam Advisers whether this committee will help clean up Malaysia’s questionable reputation on labour practices?

Image credit: Shutterstock.com; produced by: Moh Heng Ying; presented by: Khoo Hsu Chuang, Tan Chen Li, Philip See

Orangutans in a Social Media Storm

Plantation and Industries Minister Zuraida Kamaruddin made an admittedly bewildering statement during a dialogue session organised by the Malaysian Palm Oil Council (MPOC) on 5 Jan 2022: according to her “in Malaysia, if you see orangutans, orangutans will kill you first. Not we kill the orangutans first.” Conservation experts have understandably responded to the Minister’s, pointing out the comments were inaccurate.

The Ministry has since issued an official statement, claiming that the remarks were taken out of context and that it was said in jest.

Orangutan and deforestation issues have been the iconic question for palm oil. The Minister’s apparently flippant comments are a challenge for palm oil promotion intentions, but she points to the bigger (missed) context her call for a focus on orangutan issues and data. Positive and decisive actions on orangutans should be the next step from this inordinate social media storm.

Getting serious about orangutans. The info-data issues include: 

1. Orangutan population data has always been a bit difficult as it is based surveys and back-casting. Newer research seems to estimate a lot more orangutans in the past, and the reduction is often proportionate with forest loss. Some industry observers are suspicious of this, and they also worry about misleading images including a popular photo of an orangutan being "attacked by heavy equipment" that keeps circulating on social media. In fact, we hear that the animal, named Hyundai, was being rescued by this equipment. 

2. NGOs should be more public and transparent with their information. There are even some accusations online lack of accountability for corporate donations for orangutan efforts. Whether true or not, from first hand experience, we know it is hard to find public information about primate conservation projects and their costs. 

3. Primates are complex and not cuddly creatures, and all wild animals need to be treated with respect to reduce conflict with humans. This is a theme of conservation efforts and forums that MPOC has sponsored. Our late 2019 review of MPOC’s wildlife projects are here, and the project list has not seen updates since although there is news of some new initiatives. 

There can and should be more public information about orangutans (and other endangered species) from all stakeholders. If we are to care about conservation, we have to get serious about the costs as well as how much area and animals we can cover. Transparency and accountability are key. 

For more context of the Malaysia social media storm: Malaysian netizens have been criticising Malaysian politicians for many months now. The wrong words or tone are picked up terribly fast on TikTok, Twitter, and other social media platforms. Over the years, there has been a struggle to promote a positive image for palm oil. A previous effort to put Prime Minister Mahathir as the face of Malaysian palm oil, with a recommendation to "take a spoon a day", came up against counter-currents in domestic opinion as an investigation of school children talking about sustainable palm oil caught many by surprise (and there will be ongoing efforts to ensure children do not “badmouth” palm oil). Mahathir himself was also caught up in political issues with India, triggering a call to boycott Malaysia palm oil.

For more, listen to the BFM podcast here following the Minister’s alleged joke: Zuraida, Orangutans and Palm Oil: Unpacking the Issues

BFM: Compensation for States to Protect Forests

Earlier this week, the Malaysian federal government announced plans to compensate state governments for maintaining its forest reserves. While the quantum is still in the works, Energy and Natural Resources Minister Takiyuddin Hassan has revealed that it would be based on “the percentage of the forest reserves recorded at respective states.” Following the announcement, Kedah chief minister (menteri besar) Muhammad Sanusi Md Nor stated that the state should receive RM100 million a year for maintaining its forests, particularly its water catchment areas which provide water to Kedah as well as its neighbouring states of Penang and Perlis.

Crackdown on deforestation and logging following major flooding events is not new—we have a post several years ago pointing out this recurring trend at the state level: The Political-Economy of Land Development (or the Politics of Floods). Logging and sand mining activities have long been an issue in Kedah, justifying concerns surrounding the safety of water supply within the northern region of Peninsular Malaysia.

Editor’s comments: The data from the states on land and water-related incomes has been hard to follow. Revenues may be channelled through corporatised entities like Menteri Besar Incorporated, yayasans/foundations, joint ventures, and other efforts, without hitting state coffers. In our comparison of Kedah and Kelantan, the former appear to report higher income per hectare cleared and a higher ratio of state revenue from land-water sources. But information on forest conservation efforts and related costs are hard to come by. NGOs don't make things easy either.

I tried to benchmark the costs of conservation for primates, but couldn't find enough data to do so! And the costs to plant a tree are all over the place. Some experts have complained that some NGO/conservation entities have high overheads, e.g. flying first class to stay in Shangri-La Paris. Everybody has to do better transparency governance if we need large—if not mega—scale conservation and climate change forest projects. Why is there such a lack of data and consensus in the public sphere?

Listen to the podcast here: Compensation for States to Protect Forests

The Prime Minister has announced that the federal government will compensate states that maintain their forest reserves. We discuss what goes into this decision.

Image Source: Jeremy Bezanger, Unsplash; produced by: Alia Zefri, Raihanna Azwar; presented by: Lee Chwi Lynn, Sharmilla Ganesan

BFM: Politics Roundup—Vote of Confidence, Muhyiddin's Appointment

It has been almost three weeks since the appointment of Ismail Sabri as Prime Minister, making him Malaysia’s second premier appointed during the Covid-19 pandemic. Together with parliamentary consultant Maha Balakrishnan and Merdeka Center programme director Ben Suffian, Segi Enam Advisors principal Khor Yu Leng joined BFM’s Inside Story for a 40-minute discussion surrounding the various political upheavals—and their long-term implications—the country has recently experienced: Politics Roundup—Vote of Confidence, Muhyiddin's Appointment

We round up on political developments by looking at the the ramifications of the Attorney General saying that there’s no need for a vote of confidence in the upcoming Dewan Rakyat sitting. Then, we explore what the larger impact of former PM Tan Sri Muhyiddin Yassin being appointed the chairperson for the National Recovery Council will have. And finally - we talk about what this all says about Ismail Sabri’s administration.

Image Source: zmpixes, Shutterstock; produced by: Tasha Fusil, Alia Zefri, Loo Juosie; presented by: Sharmilla Ganesan, Lee Chwi Lynn

BFM: Competency Needed in New Cabinet

Following his appointment as Malaysia’s Prime Minister, Ismail Sabri promises to announce his new Cabinet this week. As speculations abound on who will make it onto the administration line-up, one thing is for certain: competency from this new Cabinet is non-negotiable. Segi Enam Advisors principle, Khor Yu Leng, was on the BFM Morning Brief yesterday to join in on the discussion, including who the new Deputy Prime Minister might be and possible investor reaction: Competency Needed in New Cabinet

Khor Yu Leng, Political Economist at Segi Enam Advisors speculates how the new cabinet would look like and its size under Datuk Seri Ismail Sabri as Prime Minister. Would it be sizeable to appease all parties? And who might become Deputy Prime Minister(s)?

Image credit: Shutterstock.com; produced by: Arleen Webber; presented by: Shazana Mokhtar, Noelle Lim, Khoo Hsu Chuang

BTS of the BFM Morning Brief! Parti Warisan Sabah President Shafie Apdal joined the call for a brief moment in preparation for the next segment, Shafie: It Comes Down to Leadership.

BFM: Moving Forward with Challenges in Migration Issues

The US State Department released its annual Trafficking in Persons (TIP) report earlier this month, and in it was a damning development: Malaysia was downgraded from Tier 2 Watch List to Tier 3. The downgrade essentially suggests that the country has failed to fulfil the minimum labour standards and is not putting significant effort to do so.

An important issue for sure, BFM invited Segi Enam principal Khor Yu Leng to discuss the matter: Moving Forward with Challenges in Migration Issues.

COVID-19 has complicated migration, with a pause being put on migrant labour flows, and concerns about how this could worsen the problem of human trafficking. First, we find out how the pandemic has affected migration trends in the region. Then, we discuss Malaysia's downgrade to Tier 3 in the US State Department’s Trafficking in Persons report, and how this affects businesses. And finally, we hear what it’s like for migrants here in our country.

Image Source: John Salvino, Unsplash; produced by: Loo Juosie, Kelvin Yee, Azlyna Mohd Noor; presented by: Lee Chwi Lynn, Sharmilla Ganesan

BFM: Ronaldo's Gesture Costs Coca-Cola Billions

The business world was abuzz last week: Cristiano Ronaldo’s actions of moving away two Coke cans from view during European Championship press conference has led to a USD4 billion plummet in Coca-Cola’s market value. While the Portugal captain’s opinion on carbonated drinks is already well known, Ronaldo’s gesture was followed almost immediately by a drop in Coca-Cola’s share price from USD56.10 to USD55.22, showcasing a significant effect big names can have on brands. Segi Enam principal Khor Yu Leng was invited to BFM to discuss the matter: Ronaldo's Gesturer Costs Coca Cola Billions.

On Monday, Christiano Ronaldo removed two Coca Cola bottles at a Euro 2020 press conference, which led to Coca Cola acquiring a loss of 4 billion dollars in company market value. We looked into the impact that big names can have on brands, as well as what it takes to be more health conscious.

Image Source: beIN SPORTS France; produced by: Kelvin Yee; presented by: Lee Chwi Lynn, Sharmilla Ganesan

BFM: Non-essential Companies Reportedly Getting MITI Approval

Segi Enam principal Khor Yu Leng recently went on BFM to discuss about reports that some companies are slipping past the “essential sectors only” rule, enforced as part of Malaysia’s third lockdown, via approval letters purportedly issued by the International Trade and Industries Ministry (MITI). Given the rising public tension with regard to how the government is managing the coronavirus pandemic, this issue is unsurprisingly quite a heated one. Click on the following link to listen to the podcast: Non-essential Companies Reportedly Getting MITI Approval

As we go through MCO 3.0, there have been reports of non-essential companies that seem to have received permission from MITI to remain open and operate. We discuss why this might be happening, and how the vetting process can be improved.

Image Source: Jon Tyson, Unsplash; produced by: Kelvin Yee, Azlyna Mohd Noor; presented by: Sharmilla Ganesan, Lee Chwi Lynn

BFM: Travel Bubble with Indonesia Gets Green Light

Segi Enam Advisors principal Khor Yu Leng was invited on BFM to give her thoughts on the recent developments in the trade relationship between Malaysia and Indonesia. This remains a highly relevant issue, especially in light of the recent meeting between Prime Minister Muhyiddin Yassin and President Joko Widodo, which saw the two leaders discuss various regional concerns, including the two countries’ ongoing defence of palm oil and the political unrest in Myanmar. Click on the following link to listen to the podcast: Travel Bubble with Indonesia Gets Green Light.

With Malaysia and Indonesia agreeing in principle on a Reciprocal Green Lane, we speak to Khor Yu Leng to understand if this would strengthen trade ties between both countries, and if this points to the re-opening of our economy internationally.

Image Source: Afif Kusuma, Unsplash; produced by: Adeline Choong; presented by: Lee Chwi Lynn, Sharmilla Ganesan

Malaysia-Indonesia Top Exports (4 HS code)

Top Indonesia exports to Malaysia

1. Coal, briquettes, etc.

2. Petroleum coke, bitumen, etc.

3. Palm oil and its fractions

4. Flat-rolled products of stainless steel

5. Copper, refined, alloys, etc.

Top Malaysia exports to Indonesia

1. Petroleum oils, etc.

2. Polymers of ethylene

3. Polymers of propylene, etc.

4. Semi-finished products of iron or non-alloy steel

5. Electronic integrated circuits