Looks like 1.5 million more workers coming to our shores

From the Malaysia Insider

The plan to bring in some 1.5 million workers from Bangladesh to Malaysia in stages over three years contradicts objectives in the 11th Malaysia Plan (11MP) to reduce dependency on low-skilled foreign labour, the country's umbrella body of trade unions said.

Malaysian Trades Union Congress (MTUC) secretary-general N. Gopal Kishnam said reliance on foreign workers would not help Malaysia achieve developed nation status by 2020 if locals were left wanting for jobs and better wages.

"I am not in agreement with the government's proposal to bring in 1.5 million (workers from Bangladesh). This is as big as the population in Kelantan. I don't see the reason why we have to do this when we already have so many illegal immigrants," he added.

"Local workers have no hope to find jobs as employers like to hire those they can pay cheaply," he told The Malaysian Insider.

"This always happens and Malaysia will not achieve developed nation status by 2020 where one of the goals is to raise workers' salaries," Gopal added.

In June, Home Minister Datuk Seri Ahmad Zahid Hamidi said 1.5 million workers from Bangladesh will be brought to Malaysia to meet the demands of employers from various sectors, especially those that involve "dirty, dangerous and difficult" work.

He said the government had no choice but to do so as Malaysian workers were "choosy" with jobs.

But MTUC fears that reliance on foreign labour would not help push up wages, which have been largely stagnant or seen only marginal growth for working class jobs.

Gopal added that statistics from the Employees' Provident Fund (EPF) showed that more than 40% of local workers earned less than RM2,000 per month.

- See more at: http://www.themalaysianinsider.com/malaysia/article/plan-for-1.5-million-bangladesh-workers-contradicts-11mp-says-groups#sthash.XHvdZ3ku.dpuf

 It looks like Malaysia's growth isn't over yet.  The ability to get low cost labor to feed the large construction projects is extremely ambitious and the only saving factor for the Najib administration.  This is a huge factor to prop up the economy.  It's probably also the only thing he can do as there is no other choice for growth.

1.5 million workers will certainly add a ton of growth to GDP and keep it trucking despite a major slowdown.

All these workers will buy cellphones to call home, use foreign remittance services, buy necessities, and take up unused housing spaces.  They will aso contribute to the revenues of the country and tax collection as they buy necessities of life through GST.

Three cheers for keeping the economy trucking!

Tenaga by far the biggest loser of the current market down turn

From the Edge:

KUALA LUMPUR (Aug 10): Tenaga Nasional Bhd ( Financial Dashboard)'s (TNB) shares continued to decline for the third straight day, dipping as much as 4.6% in early trading, in line with the weak broader market.

As at 3.20pm, the stock shed 46 sen or 4.04% to RM10.94. A total of 8.01 million shares were traded. It hit an intraday low of RM10.88, emerging as one of the top decliners on Bursa Malaysia today.

Last Thursday, the stock posted its largest decline in a year, dropping 4.42% as the political ramifications around the 1Malaysia Development Bhd (1MDB) saga weighed down on the stock.

TNB shares have lost 13.9% since mid-July, when the national utility announced its non-binding proposal to acquire 1MDB’s remaining power assets, raising bailout concerns.

It seems the market has more or less decided that Tenaga is in trouble.  I wonder what kind of rumors are going around for this stock.

What kind offer has it bid for 1MDB assets?

If you ask me, it is buy on the news of the asset purchase when it comes out.  Especially if the stock the assets purchased are reasonably priced.  If they bid 15 billion for the assets or below, I'd be a buyer of Tenaga.

People have to keep in mind.  Energy prices are quite low, and the country has a huge population which will keep demand robust even after a decline in output due to GST.  Excess capacity is not the problem which if it was, I would be a seller of Tenaga.