Justice For All Malaysia

So what after December 2010?

Posted on: October 17, 2008

Gov’t guarantees bank deposits until Dec 2010
Oct 17, 08 8:18am

Malaysia has issued a guarantee for all bank deposits until December 2010, following the lead of several other nations in a measure to maintain the stability of its financial system.
These measures are pre-emptive and precautionary, since Malaysian financial institutions are well-capitalised with ample liquidity, and confidence of depositors remains intact,” the central bank said in a statement.

The move was announced late yesterday in tandem with a similar measure in Singapore and follows action to protect banks in Australia, Hong Kong, New Zealand and several European countries.

Bank Negara said that with immediate effect, the guarantee would cover all ringgit and foreign currency deposits with domestic and locally incorporated foreign banking institutions.

Insurance companies and takaful operators, which provide products that mimic insurance but comply with Islamic law, would also have access to the liquidity facility.

Bank Negara: More measures if necessary

The central bank said that if there was any further destabilising fallout from the global crisis, it would take additional measures to protect the financial system.

“In addition to ensuring adequate liquidity in the banking system at all times, (it) would also guarantee interbank obligations of banking institutions and facilitate efficient access to capital for banking institutions to maintain capital adequacy at target levels well above the minimum standards.”

Authorities around the world have been scrambling to shore up public confidence in the global financial system by nationalising banks, guaranteeing deposits and putting together massive bank bailout packages.

zeti akhtar with bank negara reportCentral bank governor Zeti Akhtar Aziz said this week that the Malaysian economy, which posted a strong performance in the second quarter, would not be severely affected by the US subprime crisis.

“I want to emphasize that … the impact on Malaysia would be less pronounced than what we experienced previously, because we are a more diversified economy and more importantly we have a stronger domestic economy (now),” she said.

S’pore sets aside US$101 bil

Singapore said it had set aside US$101 billion to guarantee all bank deposits in the city-state until the end of 2010, but insisted the banking system remained sound.

Singapore, like Hong Kong, is a regional financial centre and one Singapore-based bank, DBS, is Southeast Asia’s largest lender.

malaysia stock exchange market klse 141008 04″The government has decided to take precautionary action to avoid an erosion of banks’ deposit base and ensure a level international playing field for banks in Singapore,” the city-state’s authorities said.

Hong Kong on Tuesday said it would guarantee all bank deposits and set up an emergency capital fund for the city’s banking industry, but insisted the sector remained stable despite global turmoil.

Financial secretary John Tsang said that retail deposits in the Chinese territory would be fully guaranteed until 2010, following similar moves by other governments.

European Union nations have already committed more than US$2.4 trillion to fighting the crisis by buying bank shares and providing loan guarantees to keep credit markets moving.

The United States has a US$700 billion rescue plan, and Washington announced on Tuesday that US$250 billion from that would be used to take stakes in nine major banks.

1 Response to "So what after December 2010?"

[…] Pradeep Mittal wrote very interesting post today onHere’s a quick excerpt […]

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Must Attend Program

Please go to this link: https://justice4allkuantan.wordpress.com/2008/10/25/invitation-public-forum-the-isa-and-the-police-reform-process-whats-next-after-pak-lah/
To sin by silence when we should protest makes cowards of people - Emily Cox

Siphoning EPF money

On 'Why should Valuecap borrow from EPF?' Syed Shahir Syed Mohamud: MTUC condemns the government's move to bail out Valuecap to support the local stock market using RM5 billion from EPF, as the provident fund is the custodian of the workers' money and not some sort of ‘automated teller machine' for the government.
If at all the EPF were to lend its money to the government, it has to be under the condition that there be transparency and accountability in the activities for which the money has been purposed. We want to know who is doing what with the money that belongs to the workers. This is the hard-earned money of the workers, their retirement plan. How is this bailout plan going to benefit the workers? We also question the reason for this bailout. If the economic fundamentals in Malaysia are strong and reserves sufficient as has been stated several times by the government, then why is there a need to offer so much money to the GLCs? Second Finance Minister Nor Mohamed Yakcop should prove how the EPF would profit from this loan. Bernama had reported that Nor had given the assurance that the loan given out by EPF would reap profits for the fund judging from Valuecap's past performance. But where is the paperwork and calculations to show that this move will benefit the EPF? MTUC is concerned that the loan might be mismanaged or misused and this, in turn, would affect the returns for the contributors. Mere assurances are not enough. We want to proof that this RM5 billion will not go down the drain. (The writer is president, MTUC). Sharyn: The government wants to use our pension money to prop up the Malaysian stock market which is the playing field of the rich people. If so, the government must ensure that the EPF account holders - who are predominantly the poor to average citizens of Malaysia - be guaranteed all of our pension money with a compound 8% growth (interest). It's so selfish and sick of the government to use the poor's pension money to help the rich to make more money with all the risks taken by the poor/average citizen. We can better use the RM% billion loans to Valuecap for our children's education, shelter, medical bills etc. Why not get those rich people to prop up the share market instead? Why should they park their money overseas and gamble with our EPF money instead? Kumar14: Who is behind this Valuecap organisation? Why suddenly, this separate entity is allowed to access funds from the EPF? Are they capable enough to handle it or is it just another desperate and blind move? It has been a very infamous trend where the people's funds are channeled to a company for investment purposes and suddenly POP! the funds disappear and there is nobody to be held responsible but a RM2 shell company. Charge who? Sue whom? The RM2 company (just a registered name)? We have seen this many times. People in power and with connections allow such things to go through and reap/rob the people's wealth and then blame it on organisations which actually don't exist. What if a lot of EPF funds are looted via such scams and nobody is to be pointed at? Where will the government get the funds to replenish the EPF? The people are very bored, disappointed, angry and frustrated at seeing all these dumb and unaccounted for measures being allowed by the government with lame excuses. Please, somebody verify the true purpose, integrity and capability of anybody attempting to use the people's fund.

Raja Petra

Photobucket Ihsan dari blog Go!Malaysian http://gomalaysian.blogspot.com/

ANWAR IBRAHIM

A prosperous future is indivisible from a firm commitment to the principles of distributive justice, the rule of law and a profound respect for human rights.

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justice4allmsia@yahoo.com

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