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Sunday, August 21, 2005

Beneficiary of trade liberalism in textile industry

US and EC has lifted the import quota on textile industry from 1 January 2005. EC has however has limit China's textile import to EC at 12.5% growth rate. Whereas China negotiation with the US is still on going.

Textile industry is a very labor intensive industry. Base on China agreement with EC. China labor cost has escalated and it textile industry would become uncompetitive after 3 years restriction lapse.

Who is the beneficiary of such liberalism and restriction on China? Ramatex Berhad, Malaysia largest textile manufacturing company, which has investment in China, Cambodia, and Africa would be benefited. It website listed 5 factory in Suzhou, China is under expansion.

In it home country Malaysia. It just obtain a USD10million term loan facilities from from BNP Paribas Labuan Branch. The purpose of the Facility is to finance the capital expenditures and working capital requirements of Tai Wah Garments Industry Sdn. Bhd., which is in tandem with the increase in its business orders. According to announcement to Bursa Malaysia.

Textile industry can be started at very low capital. Ramatex Bhd started with only S$80,000 in 1976. With less than 30 years. It turnover has expand into billion.

Toyota, automobile manufacturer in Japan started from textile manufacturing company. Same as Taiwan's automobile manufacturer, which joint venture with Nissan of Japan. Only Hunydai of South Korea started from contruction industry.

Unfortunately, China unable to follow this path of industrialization process after limitation and restriction from EC and now US.

However, Ramatex Berhad of Malaysia is a beneficiary. Rumors say that it factory in China and Malaysia remain busy, and is expected to announce a favorable result.


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6 comments:

Anonymous said...

Hello...i visited ur blog and i find it very interesting...do u mind
exchanging links with me? Thank you very much
my blog is at http://www.kahsoon.com

hope to hear from u soon
ur sincerely,
kahsoon

Peter said...

Hi Kah Soon,

Sure, your link has been added

Thanks Kah Soon

Anonymous said...

Racist, Racist, Racist.

Now almost 50 years on, we really should review the social contract because it has not served its purpose.

This is because 3rd generation non-malays born and bred on this soil is considered 'pendatang' and second class citizens. Whereas recent Indonesian newcomers and Pakistani husbands to malays enjoy better privileges.

Now this agenda is religiously skewed and that is how the Indonesians and the Pakistanis are enjoying better privileges at the expense of 3rd or 4th generation non-malay Malaysians.

This also probably explains why the Orang Asli still do not fully enjoy the privileges of the social agenda.

The NEP has only served a few. Its original motives were noble because weather you or I agree malays do need a lot of encouragement but not the sort that have been getting as opposed to the ones in Singapore.

In the 1970s in Singapore, O and A levels pass marks for Malays: 28%, Indians: 65%, Chinese: 75%, others: 50%.

This NEP discrimination only made the non-malays smarter and the malays more dumb. Pass mark for Singapore malays in then: 50%.

Singapore allow them to leave Singapore any time they want but they choose to stay because their kids are properly educate, got better opportunities, housing and health care……….And they are truly loyal to Singapore.

I would like to add further to what has mentioned.

(1) Singapore's first president was a malay. The republic has also had two Indian presidents including the present one.

(2) The republic Singapore has had two Indian deputy prime ministers including the current one.

(3) It has had two Indian foreign ministers.

(4) The country's present minister for education is an Indian.

(5) A former police chief (equivalent to Inspector-General of Police) was, yes, you guessed it, an Indian.

Can we ever expect such important government positions in Malaysia to be occupied by those representing the minority communities in Malaysia? I am afraid the minorities here can only dream.

Are the malays so impoverished in intellect and ability that they need handouts to survive?

The alternative already exists - the day the malays rely on themselves, not Umno, is the day they write their own destiny.

Income and employment statistics show the Chinese are still ahead of other races but nowhere near pre-NEP levels.

The aids and opportunities provided under the NEP, if given to non-malays would propel them sky high in half the period.

Protection for the malays means isolation for the malays. As long as they ask for more protection, they will be isolated from the progress of the world.

In the end, they will be hiding in caves like the Taliban. Nowhere to go because of inadequate skills, or skills that are not useful to the society and humankind at large.

The hardship makes us better, stronger and wiser. Hence we always try our best for the better of our next generation.

If you don't like it here, then go back to Sumatra, Jawa, or wherever your ancestors came from and give this land back to its rightful masters, the Orang Asli!

Anonymous said...

Hi Peter,
interesting post. apparently, US/EU views the rise of China as an imminent threat rather than a global advantage. I wonder why.
Sorry I have MIA-ed a bit, been busy with work and stuff. Am going through a "writing mushy stuff"
phase so be warned! :)
Keep the good posts coming Peter!
Cheers

Anonymous said...

Many many years ago, my brothers, cousins and friends, all top students applied to local university to be computer and electrical engineers.

None of us got in. We all went abroad, many of us made a killing but all of us had a good career and was in the centre of the IT revolution.

Recently some of us were approached to return to Malaysia but even at million-ringgit salary, we unanimously said no.

Cheated once, it's a pity, cheated twice is your fault.

Drug abuse, hate, incest, liberal extremism (culture of miniskirts and gay marriages), murder, racism, rape, religious fanaticism, parochialism, snatch theft, spoilt-bratty behavior, tribalism, wife abuse, child abuse, all that is associated with the malay race.

To them, malay is the biggest impediment towards building a truly Malaysian nation, and should be chucked into the dustbins of history.

Sad. Sad. Sad.

The question asked by many of my fellow Chinese is this - Why can't you just tell the malay peoples to adopt Chinese culture which is superior?

History always repeats itself. And nature is cruel. Any race of lower intelligence gets wiped out eventually.

See what is happening to indigenous tribes and their lands, always taken over by smarter people from elsewhere.

Look at Singapore, who owned it in the first place and who came and took it over?

America was taken by Europeans from the Red Indians. Even British convicts and unwanted low life managed to grab Australia from the aborigines and reduced them what they are today. They may become extinct one day.

However Malaysian still have hope as they are learning fast. Just hope it is fast enough. Problem is that some of them are still crying for bumi policy as a crutch. The smarter ones know that it is just prolonging the agony. Any way the smarter ones actually are not from Malaysia originally.

You can only survive if you are able to stand on your own two legs. Shouting "Malaysia boleh" is no use - if you can, you can.

"Only a quarter of Malaysian is Chinese while more than half of the population is malays. Yet Chinese control half of the economy while malays only about 20% ."

Whether there is NEP or not, don't make much difference in the long run. When you walk with crutches for too long, you lose the ability to stand on your own legs.

Friend, you have a place there. Find your own niche in the food chain. (If you leave for greener pastures, you are repeating what your forefathers did when they left China and ended up in oversea.)

People with brains can overcome all sorts of man-made obstacles or unfairness. Those with brains but do not use them will cry for help.

You can decide which type you want to be.

Anonymous said...

Malaysia's first astronaut will be chosen from a shortlist……….Malaysian astronaut will carry his nation's cuisine on the space……….

Isn't it cool? For a cool US$25 million, we get to send one person to joyride with the Russians, dressed in batik and drink teh tarik in space!

What a wonderful way to spend your hard earned tax dollars. Bet Malaysia looks wonderful from space but for the investment, what have we achieved?

Are we the first?
Did we build the spacecraft?
Did we contribute in any way to the space program except funding it?
Does Malaysia actually benefit from it?
Is there any thing we learnt that can be of use to you and me?

When the hardcore poor are surviving on snails and wild vegetation; the government is going to spend US$25 million to send somebody to space to eat roti canai and drink teh tarik.

Is this a joke?

Another sheer waste of public fund! What is the aim? Use the money to train more doctors which is more sensible!

Just wonder that the resources and money would be better spent improving the quality of drinking, drainage system on par with the West.

Yes, this is a sheer waste of money. We have become crazy with this Malaysia boleh slogan. There is nothing to crow about with the capability of climbing the highest mountain, swimming across the cannel, having the longest roti canai etc.