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Sunday, 5 May 2019

Malaysia's education policy must champion Meritocracy instead of Mediocrity system

Education system must champion meritocracy


THE country is facing yet another controversy of its own making – the matriculation programme for university entrance or matric, for short.

The matric programme was introduced 50 years ago to increase the enrolment of Malay students in the medical, dental, engineering and other science and technical studies at public universities. It was an interventionist policy to produce more Malay graduates for the professional occupations in government service as well as in the private sector, as part of the New Economic Policy to redress the racial educational and economic imbalances in the economy.

The programme was reserved exclusively for Malays but due to political pressure from other races , the government allowed a 5% quota and this was later increased to 10% for non-Malay students. Recently, with demands for more non-Malays to be given places in matric, the government increased the total number accepted into the programme from 25,000 to 40,000 while keeping the racial quota unchanged.

There are concerns that the large increase in the number of university intakes from the matric programme will reduce the places available for STPM students and affect the quality of education. There are already complaints from parents that even though their children who go through the two-year STPM are more educationally qualified than the one-year matric students, and have a stronger command of English, they cannot get a place in public universities because of the preference given to intakes from the shorter programme.

Fifty years on, this programme is still in place, despite the huge investments made by government through the Education Ministry to increase the access to STPM (Form VI) level education in both the arts and science streams in all parts of the country.

Malay students in rural areas today are no longer facing a disadvantage in educational opportunities as there are many secondary schools with Form VI classes.

However, their parents prefer that they apply for the matriculation course as it is a faster and easier route to university.

As they are specially selected for the matriculation course, the students have a greater certainty that they will be given places in the medical , dental and engineering faculties. Another attraction is that there is very little competition with other races in the matriculation course.

There are suggestions that our universities should raise their entrance requirements so that they can get better qualified student intakes to facilitate higher quality teaching and learning and produce graduates with the right skills for the job market . This can be achieved by a policy decision that university entrance must be through the STPM stream only and that the matric programme will be scaled down to be eventually terminated as it is not a good alternative in preparing students for university education.

Matric has also become a source of continuing friction among the races as they feel that education is a human right and should not be subject to racial politics.

It is inevitable that there will be complaints from certain quarters against closing down the matric programme but the government must stand firm not to perpetuate a system that encourages mediocrity. If the country is to succeed in the digital revolution, and make Malaysia a fully developed economy, the education system must shift direction towards competition and meritocracy. The abolition of the matriculation programme will show that Malaysia is serious in moving in that direction.

TAN SRI MOHD SHERIFF MOHD KASSIM


Another brick in the wall

https://youtu.be/YR5ApYxkU-U- a protest song against rigid schooling


Education is that realm where wrongs are set right and learning thrives, yet, right off the bat, the new matriculation intake has found itself in murky waters.

SOME leaders in our federal and state governments, now or then, seem to be guilty of this habit – announcing decisions before studying the implications of their policies.

So it was no surprise that after the Education Ministry announced the controversial changes to the matriculation programme, a row erupted, and soon, the Prime Minister had to weigh in on the debate.

Tun Dr Mahathir Mohamad said he would address the quota system issue of the pre-university matriculation programme intake.

When asked for his comments on whether the quota system would be abolished, he said: “We will study the problem.”

Once again, it looks like the 93-year-old leader must step in to clean up another mess before things start to stink.

The controversy exploded when the Cabinet decided to increase the number of students entering the matriculation programme from 25,000 to 40,000 while maintaining the 90% quota for bumiputra students.

The matriculation programme was originally aimed at encouraging bumiputra students to pursue studies in science.

The highly sought-after programme – due to its cost-effectiveness – is equivalent to a one- or two-year pre-university course, and enables students to pursue a degree upon successfuly completing the programme. Enrollees only need to pay a registration fee and the rest is borne by the government.

However, the concern now is that by doubling the matriculation intake, it will affect the seats available to those vying for places in public universities via the Sijil Tinggi Persekolahan Malaysia (STPM) route.

During my time, in the 1980s, when I was sitting for the then Higher School Certificate (HSC), the matriculation programme had already been launched. At present, STPM and matriculation students number about 43,000 and 25,000 respectively.

No rational or fair person will begrudge aid provided to students who need a helping hand, let’s be clear.

But I am not sure if the ministry has given thought to the fact that we may have a surplus of matriculation students – about 60% – at the expense of their STPM counterparts.

Let’s give the ministry the benefit of doubt that they surely would have, given the many experienced experts there, but no narratives have been forthcoming to explain anything to parents and students, especially those preparing for their STPM exams this year.

If the government plans to double university intake, have backup plans been installed to accommodate the sudden surge in science students into our financially-strapped universities?

While non-scholarship students in public universities must pay their own fees, matriculation students not only get free education, but are given allowances, too.

Public universities are already cutting down on contract academic staff as fundraising programmes are being carried out.

Unemploy-ment is underscored by the huge number of jobless graduates, whose changing fortunes have found them unemployed in a soft market. In some cases, their weak language and social skills put them at a disadvantage.

As the intake increases, other relevant infrastructure, like hostels, laboratories and teaching staff, won’t multiply overnight, as MCA president Datuk Seri Dr Wee Ka Siong rightly pointed out.

“How will the ministry ensure quality in matriculation education? And the suggestion of getting teachers from teachers’ training colleges to teach in matriculation is illogical because their syllabus is totally different,” he said.

The new matriculation policy has also taken the race-based programme to another level and goes against the aspiration of being an inclusive New Malaysia.

DAP leader Dr P. Ramasamy has rightly said the increased quota for bumiputra by the government was spurred by fears of a backlash from sections of the Malay-Muslim community. This is what happens when political expediency and interest come into play.

The former Universiti Kebangsaan Malaysia political science lecturer said with the revised quota, the bumiputra allocation will increase the number of

students from 22,500 to 36,000.

He said, in comparison, the number of non-Malays will increase by only 1,500 students, beyond the current 2,500.

“I’m taken aback by the Cabinet’s decision. We have failed to move forward. It appears as though the Cabinet was not prepared to take a bold decision in increasing the intake of non-Malay students, particularly Indians.”

Education Minister Dr Maszlee Malik, in defending the new policy, said all students deserve a “better opportunity” when they apply for matriculation placement, adding that “the bumiputras will still enjoy their 90% quota”.

Dr Maszlee reportedly said the increased intake for matriculation students was based on a Cabinet decision to get more students into tertiary education and to accord all races equal opportunity.

He also said the Cabinet had instructed his ministry to discuss with the Finance Ministry the government’s burden in bearing the cost of the increased number of matriculation places.

This looks like another case of putting the cart before the horse. Announce first and work out the maths later.

Instead of emphasising need-based programmes, the government has, instead, strengthened a race-based system.

As a student at university, I was often queried by my well-intentioned Malay varsity mates about which scholarship I had obtained. I jokingly told them it was FAMA – father and mother.

I’ve always been grateful for having secured a place in a local university, particularly since there were only five then – and certainly no private universities – and that gratitude has only grown since that degree helped change my life.

And that conveniently brings me to my point: Let’s not deny our children, regardless of their race, a place in our universities, which are funded by multi-ethnic tax payers.

If parents are financially sound, no prayers would be needed for students to earn slots in our public institutions of higher learning, it’s that simple.

Wong Chun WaiBy Wong Chun Wai

Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 27 years in various capacities and roles. He is now editorial and corporate affairs adviser to the group, after having served as group managing director/chief executive officer.

On The Beat made its debut on Feb 23 1997 and Chun Wai has penned the column weekly without a break, except for the occasional press holiday when the paper was not published. In May 2011, a compilation of selected articles of On The Beat was published as a book and launched in conjunction with his 50th birthday. Chun Wai also comments on current issues in The Star.

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Saturday, 4 May 2019

Malaysia's economy: Fine growth with minimal inflation

Click to enlarge:  http://clips.thestar.com.my.s3.amazonaws.com/clips/business/Business%20Pg6-0305.pdf

The economy continues to chug along just fine even as it recorded the first inflation of the year in March. The consumer price index (CPI) rose 0.2% in March 2019 from the previous year.

The recovery away from a deflation in the previous two months was driven by the transport and the food & non-alcoholic beverages components of the CPI.

MIDF Research said in its report that the country's consumer inflation is likely to stay low following the lower capped prices of RON95 and Diesel at RM2.08 and RM2.18 per litre respectively.

Nevertheless, it said that the demand-push factor remains firm amid stable job market and steady wage growth.

Meanwhile, labour force growth has maintained at 2.1% year-on-year (yoy) in Feb 2019 while employment growth inched down to 2.1% yoy while jobs added in the economy was recorded at 34,000.

It noted that the number of unemployed people officially increased by 1.6% yoy.

But it noted also that growth in both the labour force and employment continued to outpace unemployment growth for the last 24 months since Mar 2017.

"The stable job market reflects healthy development of Malaysia’s economy and provides solid support to domestic demand," the research house said.

Meanwhile, exports dropped 5.3% yoy in Feb 2019, the lowest in more than two years mainly due to a short calendar month on top of the long Chinese New Year (CNY) holidays.

Imports also fell and it declined more than exports at 9.4% yoy.

During the CNY holidays, all Chinese factories were shut down with most of them closed one or two weeks prior to the festive holidays. As the celebration put a halt to mass production, it disrupted the global supply chain resulting in a weak trade performance.

All sectors recorded a negative exports growth: agriculture (-13.7% yoy), manufacturing (-4.3% yoy) and mining (-5.5% yoy).

Despite the poor exports and imports figures, trade surplus maintained at above RM11bil in Feb 2019.

When compared with the previous month, both exports and imports contracted by 22% and 24.8% 
respectively.


Read more ...

Are fears of ringgit weakness exaggerated ?

Friday, 3 May 2019

Check on coming monsoon floods in Penang !

Wake-up call: The floods that hit Penang in 2017 exposed its lack of flood mitigation and disaster preparedness.

GEORGE TOWN: The south-west monsoon season is expected to start sometime this month, prompting fears of flooding and falling trees here.

As dark clouds hang over Penang almost every morning now to herald the coming monsoon, talk of flooding in the state assembly sitting on Tuesday led to several lawmakers and the Speaker himself wanting to have a say.

“I am aware that some government agencies belittle the efforts of assemblymen who highlight flooding and other problems.

“As legislators who face the rakyat, they are carrying out their duties and I hope that the relevant agencies will take them seriously and not make fun of them,” said Speaker Datuk Law Choo Kiang during the day’s proceedings.

Lim Siew Khim (PH-Sungai Pinang) told the assembly how she and Ong Ah Teong (PH-Batu Lanchang) suffered verbal insults when visiting flood victims in Kampung Bukit Dumbar, where homes were flooded seven times, including a few days before the recent Chinese New Year.

This led to Dr Norlela Ariffin (PH-Penanti), Ong and Teh Lai Heng (PH-Komtar) to also stand up and voice their grouses.

Outside the hall, Ong said government officers handling flood problems tend to ignore the pleas of assemblymen.

“We are all in the same WhatsApp groups. When we highlight floods, they never respond,” he said.

Teh told the assembly that government officers don’t face the residents but the assemblymen bear all the insults from flood victims in their constituencies.

Dr Norlela said when she attended the monthly district meetings and called for strict enforcement to end the source of floodings such as deforestation, her pleas were often met with silence.

While the Sungai Pinang Flood Mitigation Plan – delayed for 20 years – has begun again with renewed federal funding, many are worried that the south-west monsoon will still bring back the floods this year.

Scientists Sheeba Nettukandy Chenoli and Chai Heng Lim, in a research paper published last November in the “Journal of Atmospheric and Solar-Terrestrial Physics”, found that the onset of the mid-year monsoon will be on May 19 with a standard deviation of eight days.

State Environment Committee chairman Phee Boon Poh said this was the season when rain coinciding with extra high tides fuelled by the super full moon could lead to severe flooding.

“Between May and June, strong winds stir up huge tidal waves that are not safe for small boats,” he said.

A freak storm on Sunday caused several trees to fall on Penang island, one of them in Tanjung Bungah falling on a passing car.

To keep falling trees in check, State Works Committee chairman Zairil Khir Johari said a special committee was ironing out a method to pass the care of public trees from the Public Works Department (JKR) to Penang Island City Council (MBPP).

“JKR specialises in building and caring for roads and bridges but MBPP has a full landscaping team that includes arborists.

“This team has the know-how to care for public trees and recognise diseased trees that must be felled before they become a hazard.

“We are finalising a method for MBPP’s landscapers to have island-wide jurisdiction of roadside trees and be granted access to federal grants for their maintenance,” he said.

By Arnold Loh and R. Sekaran The Star


Read more ..


Expecting the unexpected


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Crime and cost of living are top concerns for Malaysians - Ipsos Global Research

Global market and opinion research spec

PETALING JAYA: Corruption is no longer the top concern for Malay­sians as crime and the cost of living have taken over as more pressing issues, says an independent market research firm.

Ipsos Sdn Bhd, in its What Worries The World survey, found that the top five concerns of Mal­aysians this year were crime and violence (39%), inflation and the cost of living (34%), corruption (32%), poverty and equality (31%) and unemployment and jobs (28%).

The survey noted that corruption, which was ranked as a top concern among those in the central region, non-bumiputras and those with a household income of more than RM5,000, had fallen to third place due to significant measures made by the government to address the issue.

Inflation is the “biggest concern” of urban Malay­sians, particularly youths and those in the low household income bracket.

“Corruption has dropped significantly by 15%. Now, only 32% feel that corruption is their main concern.“For crime and violence, it is only the positioning but it has remained the same between what it was now and before,” Ipsos managing director Arun Menon (pic) said during a press conference yesterday.

Founded in France, Ipsos is a global research group with offices in 89 countries delivering insights across various specialisations.

Among other studies Ipsos has conducted in Malaysia are the What Worries Malaysia: Post-GE 2018 survey in August 2018.

It had tracked the sentiments of Malaysians bef­ore and after GE14, as well as 100 days following the change of government.

The What Worries The World survey is Ipsos’ international monthly poll of 20,000 adults under the age of 65 in 28 countries, including Malaysia.

A total of 1,500 Malaysians were asked about their perception of what worried the nation the most.

The survey also found that Malaysians believed the country was headed in the wrong direction, with the figures increasing from 25% in June last year to 43% in March this year.

“Between March and last month, the people who are most upset about the country’s direction were the younger generation across different incomes, specifically people of the middle and upper education,” Menon said.


The survey also noted that the perception of the country heading in the wrong direction was gaining mom­entum and that Malaysia was getting closer to the global average.

The poll said the global average of people who thought their country is on the wrong track was at 58%.


What Worries the World - March 2019


New global poll finds four concerns top the world’s worry list: financial/political corruption, poverty/social inequality, unemployment, crime/violence. Meanwhile, in most countries surveyed (22 of 28) the majority think that their nation is on the wrong track.

The Ipsos What Worries the World study finds the majority of people across the participating 28 nations feel their country is on the wrong track (58% on average), with South Africa (77%), France (77%), Spain (76%), Turkey (74%) and Belgium (74%) recording the greatest levels of apprehension. There are, however, wide-ranging disparities in scores across the globe.

“What Worries the World” is a monthly online survey of adults aged under 65 in Argentina, Australia, Belgium, Brazil, Canada, Chile, China, France, Britain, Germany, Hungary, India, Israel, Italy, Japan, Malaysia, Mexico, Poland, Peru, Russia, Saudi Arabia, Serbia, South Africa, South Korea, Spain, Sweden, Turkey and the United States.

Right Direction

  • China (94%) inspires the most confidence about its national direction. More than 9 in 10 Chinese citizens say that China is moving in the right direction.

  • Saudi Arabia (84%) is once more in second place followed by India (73%) and Malaysia (57%).

  • India and Sweden are the are nations with the greatest month on month increase in positive sentiment of all 28 countries, with both reporting an 8-point increase in those seeing the nations as heading in the right direction.

  • Notable rises in citizens considering their country as headed in the right direction are also seen in China (94%) and Hungary (28%) - both reporting a 6-point increase.

Wrong Track

  • At the other end of the spectrum, South African, French, Spanish, Turkish and Belgian nationals have the greatest apprehension about the direction taken by their country. Just 23% of South African and French citizens consider their nations to be heading in the right direction, followed by 24% in Spain and 26% in both Turkey and Belgium.

  • Mexico (56%) has seen the biggest fall in optimism— with a reduction of 12% from a positive sentiment spike reported last month (68%).There are also 6-point falls in both Italy and Canada.

The four major worries for global citizens are:

  1. Financial/ Political corruption (34%). South Africa (69%) has the most citizens apprehensive about this issue, followed by on Peru 63% and Hungary on 60%. Canadians (30%) have the greatest month on month increase in this concern, with a rise of 11 percentage points. Germans (9%) are the least worried citizens along with Great Britain (14%) and Sweden (15%).

  2. Poverty/Social Inequality (34%). The greatest levels of anxiety are held in Russia (58%), Hungary (56%) and Serbia (54%). Sweden (19%) and Saudi Arabia (20%) are the least concerned nations in this area followed by the US (21%). In terms of trend, we observe a strong 8-point increase in concern in this area in Hungary.

  3. Unemployment (33%). The highest levels of worry are seen in Italy (69%), South Korea (66%) and Spain (61%). Turkish citizens (+7%) and Argentinians (+6%) are the nations which have recorded the greatest month on month increase in this issue. The US public and Germans (11%) are the least concerned, followed by citizens in Great Britain (14%) Sweden (15%) and Poland (15).

  4. Crime & Violence (31%), The highest levels of worry in this issue are seen in Mexico (64%) – closely followed by Peru (62%) and Chile (59%). China (22%) records the largest increase in anxiety with an increase of 11 percentage points from the previous month. There are other increases in Chile (+9), Malaysia (+9) and Turkey (+7). Concerns around crime are lowest in Russia and Hungary (8%), and Poland (11%). The greatest falls in this issue come from Poland (-10) and Serbia (-9).

Top five global issues

  1. Financial/ Political corruption (34%)
  2. Poverty/Social Inequality (34%)
  3. Unemployment (33%)
  4. Crime & Violence (31%)
  5. Healthcare (24%)

The survey was conducted in 28 countries around the world via the Ipsos Online Panel system. The 28 countries included are Argentina, Australia, Belgium, Brazil, Canada, Chile, China, France, Great Britain, Germany, Hungary, India, Israel, Italy, Japan, Malaysia, Mexico, Peru, Poland, Russia, Saudi Arabia, Serbia, South Africa, South Korea, Spain, Sweden, Turkey and the United States of America. 20,019 interviews were conducted between February 22nd, 2019 – March 8th, 2019 among adults aged 18-64 in Canada, Israel and the US, and adults aged 16-64 in all other countries. Data are weighted to match the profile of the population.

Download

What Worries the World - March 2019



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Thursday, 2 May 2019

Pakatan Harapan government plunges in popularity

 
The Pakatan government has little choice nor time to check the slide on its popularity and goodwill from voters.

WHAT a difference a year makes. In a week, the Pakatan Harapan government will mark its first year in power but in stark contrast to the height of popularity it enjoyed then, support for the coalition has plunged.

A recent poll by the Merdeka Centre showed that the administration’s approval rating sank to 39% in March, a drastic drop from 79% recorded in May 31 last year.

Tun Dr Mahathir Mohamad’s performance approval rating as Prime Minister declined too – from 71% in August 2018 to 46% last month.

The survey firm polled 1,204 registered voters in March to gauge their opinions on the country’s economy, leadership and current issues.

Pakatan’s descent in popularity was attributed to the state of the economy as felt by consumers, the perceived strength of the government, anxieties over Malay rights and privileges and the treatment of other races in the country.

According to the findings, public satisfaction in Pakatan’s administration of the economy fell from 60% to 40% with voters largely unhappy with the rise in the cost of living.

The majority of respondents also disagreed with policies such as the move to abolish the death penalty while many were also against the scrapping of exams for Primary 1 to 3 and the plan to impose taxes on sugary drinks. Only 34% of voters polled were of the view that the country was headed in the right direction, with Malay respondents weighing in lower at 24%.

The survey showed that the main concern of Malaysians was the economy at 63%, followed by race-related issues and the flip-flop on decisions such as the government’s decision to withdraw from ratifying the International Conven­tion on the Elimination of All Forms of Racial Discrimination (Icerd).

On the plus side, worries over corruption declined to 23% from 33% while 67% of respondents agreed that the government should be given more time to fulfil its election promises.

Its support rating may have dropped but to be fair, the Pakatan government has not done too badly since taking over, considering the state of the economy and the massive debts that it inherited from the previous disgraced administration.

Of course, there is much more to do, like addressing the cost of living, fulfilling housing needs and providing sustainable healthcare but the government has already fulfilled nearly a third of its pledges, im­p­roved its overall financial position and has made significant moves to tackle corruption in the civil service.

Ironically, the freer media landscape today is contributing to the perception that the Pakatan government is performing poorly or unable to handle issues raised by the opposition, especially those related to race and religion.

Malaysia has risen 22 places to rank 123 out of 180 countries in the latest World Press Freedom Index compiled by Reporters Without Borders (RSF). It now tops countries in South-East Asia – above Indonesia (124), the Philippines (134), Thailand (136), Myanmar (138), Cambodia (143), Singapore (151), Brunei (152), Laos (171) and Vietnam (176).

Unlike in the past, opposition parties now get unfettered coverage in the media and the welcome change has led to the diffusion of a more diverse range of views.

However, the new government has been rather inept in conveying its message on a wide range of issues in the print, online and social media since taking over Putrajaya.

It is also guilty of being sluggish in countering negative reactions or stemming news designed to elicit racial or religious sentiments, as could be seen in the cases of ratification of the Icerd, the Rome Statute and the Seafield Sri Maha Mariamman temple riots.

Opposition politicians and their supporters have been quick to exploit this weakness to manipulate opinion in the freer media environment.

A recent example is lawyer Tan Sri Muhammad Shafee Abdullah’s briefings to the media in the ongoing trial of former prime minister Datuk Seri Najib Razak over funds worth RM42mil from SRC International Sdn Bhd. It is clear that he is using the media to advocate the defence’s contention that Najib’s bank account was misused by people who were unauthorised, including Jho Low, as well as some rogue bankers.

In statements designed to strike a chord with those who may find it tedious to follow the proceedings, he claimed that the former PM would most likely turn out as a “victim” in the end.

As for getting away with untrue claims in the media, one such example was a supposedly secret “side agreement” for the East Coast Rail Link (ECRL) to enable a trade-off of 4,500 acres of land to China Com­munications Construction Company Ltd (CCCC). It was based on a non-legally binding Memoran­dum of Understanding (MoU) under which the Malaysian Investment Develop­ment Authority (Mida) was supposed to assist local companies to cooperate with CCCC to create special purpose companies for development of the economic accelerator projects worth RM10bil over 10 years.

Instead of clarifying the matter immediately, the media handlers of the Transport Ministry and Mida left it to Dr Mahathir’s special envoy to China, Tun Daim Zainuddin, to respond instead.

Ineffective communication teams in the various ministries and the lack of media coordination among them are the main reasons why Pakatan appears to be losing control of its narratives on performance and service.

What Pakatan needs is expertise and a clear media strategy to re-establish political credibility and trust among the people, especially the now disillusioned voters who had pinned their hopes on a better “New Malaysia”. Instead of just leaving the ministries to handle their own issues, the approach should be on keeping to the same page, through synchronisation of information and making better use of social media to enable agencies to engage directly with citizens.

With Malaysians having higher expectations and lower levels of patience, the Pakatan government has little choice nor time to check the slide on its popularity and improve on its public relations.

Veera PandiyanAlong the Watchtower by M.Veera Pandiyan



Media consultant M. Veera Pandiyan likes this quote by George Bernard Shaw: The single biggest problem in communication is the illusion that it has taken place.


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Penang State to study Airbnb woes before legalising operations; Using Airbnb to settle mortgages?

Airbnb, Why the New Logo?

HOW other cities worldwide tackle their Airbnb problems are being studied to see if the home-sharing business could be legalised or regulated in Penang.

The office of the Penang State Exco for Tourism Development, Arts, Culture and Heritage (Petach) is studying their policies to tackle the issue of residential home owners who rent out their units as if they were running a hotel or serviced apartment.

Its exco member Yeoh Soon Hin (pic) said the global home-sharing business was quite established in Penang now that when people buy a house or condominium unit, someone might approach them and offer to guide them to sign up with Airbnb and make money from their new property.

He told the assembly that Penang Global Tourism had met with Airbnb’s management team to discuss how to regulate the business.

“Airbnb told us that they are ready to cooperate and register Airbnb units in Penang with the local authority, but we have no laws or policies for this yet,” he said.

Yeoh said in San Francisco, Airbnb operators are limited to renting their homes to a maximum of 90 days a year.

“In Catalonia, Spain, Airbnb operators can be fined up to 30,000 Euros (RM140,000) and the unit owners fined up to 90,000 Euros (RM420,000) if there are complaints.

“In Singapore, the Urban Redevelopment Authority is proposing to limit Airbnb units to only allow up to six people each time to rent them and for only up to 90 days a year.

“For strata units, Singapore plans to allow it only if at least 80% of all unit owners in the building give consent.

“Japan enacted a law to allow home-sharing of units for only up to 180 days a year,” he said when replying a question from Daniel Gooi Zi Sen (PH-Pengkalan Kota).

Gooi said he was concerned because despite strong enforcement from Penang Island City Council since 2017 to stop residential property owners from using their units commercially, the Airbnb portal lists thousands of units in Penang.

“We cannot deny property owners from benefitting from their assets, but we also cannot let them continue to operate without paying their dues such as commercial assessment rates or the hotel fee,” he said.

Yeoh said Petach was studying how Airbnb operators are regulated while waiting for the federal government to draft laws on home-sharing.

“We raised the issue and were told that the Housing and Local Government Ministry and the Tourism, Arts and Culture Ministry are studying possible laws on this.”

Yeoh said the business was unfair to neighbours, the hotel industry and local authorities.

“They are paying assessments and utility rates for residential units but are using those units commercially while legal hotels that comply with all laws such as safety and traffic provisions pay much more.

“The peace and privacy of their neighbours are being intruded upon,” Yeoh said.

He said his team in Petach was also considering the possibility of recommending that Airbnb operators be charged double or triple the current residential assessment rates that they are paying now after they are legalised.

By arnold loh and r. sekaran at the penang state assembly



MUCH has been said about Airbnb in the news of late. The Malaysian Association of Hotels (MAH) Penang branch has claimed that the emergence of Airbnb and illegal accommodation are among the main causes for Penang hotel occupancy rate to decline.

Another news report indicated that Airbnb operators are required to register with Kuala Lumpur City Hall. At this point in time, it is vital to see the concept of Airbnb. The platform was started to connect people who were looking to rent their homes to those who wanted hotel-free stay accommodation for short periods. The reason for the registration must be for the purpose of regulation by the authorities.

The claim by MAH that the emergence of Airbnb has caused hotel occupancy rates to drop must also be examined.

In terms of cleanliness and hospitality, although hotels do fit the bill, not all hotels are in that category. All hotels must be refurbished and kept clean at all times. It may be a bit too much to ask for luxury bedding or first class service, but cleanliness and pleasant service is not too difficult.

Airbnb hosts are conscious about their guests and the reviews that are given on the website. They go the extra mile, and it is not always accurate to say that Airbnb is cheaper and therefore people choose them over hotels. It is the space, the home away from home concept, and being looked after, the occasional bottle of wine left for guests, the fruit basket, the bottles of fruit juice and mineral water in the fridge — all of these go a long way in wooing guests.

In terms of protection for the hosts and the guests, Airbnb has enough protection in place. It is up to the renter to choose who they want to rent out to. Those who want to rent and those who are renting out their properties have their profiles. Reviews as to the safety of the place and its convenience — all can be seen from the website. It is a very transparent website and no one can complain that they were not aware that there was a danger or that they did not get their money’s worth. There are times that unfortunate Airbnb hosts unwittingly allow roguish guests and their premises are wrecked. The Airbnb hosts too, have a risk to take.

From the reports, it is unclear of the need for Airbnb to be registered or regulated. Hotel operators are required to register as it is a business. Airbnb is a service platform and not a business. For hosts, it is an additional income — especially for the elder population whose children have left, or even for those with university fees to pay, this additional income will be a good supplement. Unlike hotels and motels, Airbnb operators are there on a temporary basis. Sometimes, the owner may get a long-term tenant, and may not want to continue with the Airbnb concept.

Maybe we can take a leaf from countries where Airbnb has been regulated. In Los Angeles, United States, a regulation was passed for short-term rentals (vacation) with an initial cap on rentals for up to 120 days with flexibility to increase that number of days.

In New York, it is illegal to rent out an entire residence for less than 30 days. Short-term rentals are permitted if the homeowner is also staying there throughout the rental period and there are no more than two renters. This would be ideal for an elderly couple who would enjoy the company of young tourists who would in turn enjoy being in a home environment.

In Japan, anyone wanting to list their property on Airbnb will need to register with the local government, who will conduct fire and safety checks on the premises. The new regulations also limit rentals to 180 days per year.

Singapore has prohibited public housing rentals that are under six months, or three months in the case of private housing without the approval of the Urban Redevelopment Authority. In London and Paris, new laws have limited short-term rentals up to 90 days per year, and Liverpool City Council has pushed for national regulations to ensure that landlords register short-term rental properties.

Regulation is of critical importance in shaping the welfare of economies and society. Any form of regulation must work effectively and serve the public interest. Government agencies, in this case, the local councils are responsible for implementing regulatory policies and must be aimed towards protecting the consumer. When imposing such regulations on individuals, such as Airbnb hosts, there must be a goal that will help the government to achieve its purpose. The objective of a government or regulatory body is to ensure better and cheaper services and goods, and to provide a fair competition to any particular industry without encouraging a monopoly. Airbnb may be regulated and the town and city councils may want to draw up guidelines following from the examples cited above.

 By GRACE XAVIER
Grace Xavier is research fellow at the Faculty of Law, Universiti Malaya and she can be reached at gracem@um.edu.my


Using Airbnb to settle mortgages

Survey: Hosting helps to repay loans, provide extra income



https://www.thestar.com.my/business/business-news/2019/07/03/md-the-cost-and-security-issue-of-airbnb/?jwsource=cl

PETALING JAYA: More Malaysians are relying on Airbnb to settle their mortgages given the property overhang that is engulfing the sector.

According to an Airbnb survey of more than 2,000 Malaysian hosts and guests, half of the Airbnb hosts said it had helped them pay for their homes while 40% said Airbnb provided a supplementary income for them to make ends meet.Malaysia is Airbnb’s fastest growing country in South-East Asia for the second consecutive year.

It saw more than 3.25 million guests in Malaysia over the past 12 months ended July 1, which translated to a 73% increase from the previous period.There are more than 53,000 Airbnb listings in the country.

Axis REIT Managers Bhd investment head and former Malaysian Institute of Estate Agents president Siva Shanker said many of the Airbnb hosts were investors and speculators who purchased the properties during the upturn, with the intention of selling them at a higher price.

“However, when the property market started to make a turn for the worse, many of these speculators found it difficult to sell or rent out their units but at the same time they needed income to service their loans,” he told StarBiz.

Siva said many of the buyers and investors had bought the units on the advice of some people with questionable skills and credentials.

“Many of the people, who claimed to be experts, gave false assurances that the properties could be sold at a premium of up to 40% within a couple of years, or that they would be able to get high rental yields.

“This is essentially a get rich quick scheme and many people believed in them. But then the market crashed and many of the buyers are saddled with a property that they can’t sell or rent out.”

Siva said many of the so-called “advisers” had rebranded themselves as Airbnb consultants when the property market slumped.

Airbnb is an online booking platform that allows people to rent out their properties or spare rooms to guests.

PPC International managing director Datuk Siders Sittampalam said the concept of Airbnb needs to be regulated.

“It’s never been regulated in the past, especially in terms of taxes. How do you determine things such as cost and security?”

Siva concurred that proper regulation need to be put in place to for Airbnb operators.

“You don’t know who’s going into your apartment. Every other day, your occupants are changing.

“They could be illegal immigrants, running criminal activities, being a nuisance and disturbing the neighbours.

“How is the unit considered ‘gated and guarded’ when the owner is the one that opens the door to these strangers?”

With no proper regulation in place, Siva said the value of the apartment will deteriorate.

“The owner is running it like a hotel, except he doesn’t have the upkeep skills of a hotelier. Within a year, the apartment will look run down. By then, new properties will be up in the market and new owners will be looking to rent them out.

“The owner of the run down apartment is going to have difficulties finding tenants, but he still needs to fulfil his monthly mortgage. Eventually, it becomes a vicious cycle. To stop this, we need to educate the public and get rid of the self-proclaimed property gurus.”

Another concern is the Airbnb having a huge impact on the local hotel industry.

According to Impiana Hotels Bhd executive director Azrin Kamaluddin, hotels that havemore than four stars will face limited to no impact from the rising popularity of Airbnb.

“The hotels offer distinct product differentiation as they provide experience and service to guests.

“What Airbnb does is offer accommodation as a commodity.

“I believe that owners of four and five star serviced residences that do not lease back their units to operators as well as hotels that are three stars and below would be disrupted by Airbnb.

“It is imperative for hotels that have three stars and below to reinvent themselves to stand out from the competition posed by Airbnb,” he said.

On the potential launch of Airbnb Luxe, Azrin said it would not have an impact on four to five-star hotels, given the relatively small volume and higher price tag of US$1,000 per night.

Siders concurred that Airbnb would only have an adverse impact on budget hotels.

“The four-star and five-star hotels offer different types of services and amenities.”
 
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