Rare Earth Refinery Plant in Kuantan, Malaysia

Perhaps Lynas should turn back

— Tay Tian Yan

The Malaysian Insider
February 24, 2012

Feb 24 — I recently met director Tan Chui Mui. She told me she had moved her studio from Kuala Lumpur to Beijing.

KL is too small in the world of film-making; Beijing is somewhat larger. Tan needs a bigger space to develop her career and fulfil her dreams.

She has won several awards in international film festivals. She is so young and there are lots of potentials she could exploit outside the country.She does come back to her native Kuantan every now and then, not so much for making a movie, but for her hometown.

Lynas Corp plans to set up a massive rare earth refinery plant in Kuantan, and Putrajaya has issued a conditional temporary licence to the Australia-based firm.Waste materials from the processing of rare earth could be radioactive, everyone knows that. Both the Malaysian government and Lynas have reassured the public that necessary precautions would be adopted to ensure zero leakage of radioactive substances. Kuantan residents do not feel assured. They are not willing to stake their health and safety. Tan took the lead in opposing the proposed plant by making a short documentary “Survival Guide in Radioactive Village,” which has been screened at the Rotterdam Film Festival and soon at other film festivals worldwide.

During the Chinese New Year, she organised a candlelight vigil at Teluk Chempedak near Kuantan to protest against the rare earth plant. Despite her age, her powerful resolution and determination have moved the hearts of many. Indeed, the world outside is indefinitely large while her hometown is so small. Just because it is small, and is the one and only, it has to be protected at all costs. Even if the rare earth plant is certified safe, unforeseen circumstances could still happen. And if it does, it could wreak dreadful havoc on the little town.

Australia spans 7.7 million square kilometres. It is the sixth largest landmass in the world and about 20 times bigger than Malaysia, although it only has 22 million inhabitants, fewer than us.

With such a so much land and much of uninhabited, it wouldn’t be hard for Lynas to pick a place to set up a rare earth plant in Australia. In the event of a leakage, the destruction could be contained to minimum. Kuantan is just a small town of about 30km in diameter but inhabited by some 700,000 people who have nowhere to escape if any untoward incident takes place. By choosing Kuantan over Australia and transporting the raw rare earth ore over more than 5,000km across the sea, Lynas will have to incur much higher costs and time. Australians should have a keener business sense than this, I believe.

They definitely do. But they also place their homeland’s safety above monetary gains. To set up a rare earth plant in Australia, Lynas may need to pass the rigid environmental evaluation as well as acceptance from the general public. While Malaysia has proposed that the radioactive waste be transported back to Australia, the same might not be practical as cross border transportation of industrial waste is strictly prohibited under the international law, while Canberra has made it very clear that it will not take back the waste.

Malaysia is neither a rare earth producer nor a major consumer. To make the country a transit point for international rare earth supply will only do Kuantan more harm than good. Perhaps Lynas should turn back and look inward, given the fact that its homeland is blessed with such an enormous land mass. — mysinchew.com

Celebrating the 10th Year of "Hairlessness" Part 1

...10th...

November 2001 was the time when my hair was falling rapidly, within months I lost about 80% of the hair on my scalp, then it progressed to my eyebrows, arm and leg hairs, eyelashes and the rest of the body and this condition is termed as ''Alopecia Universalis"- a severe form of Alopecia Areata.

It's been 10 years and I still love to tell others about alopecia areata. So, what is alopecia areata (AA)? In short and lay-man explaination: The white blood cells in my body attacks my hair roots and there is no cure yet. And I cannot die from having Alopecia Areata. It is widely believed and accepted by both scientist and dermatologist it is one to the Autoimmune diseases.

Now, in the 10th year of living with alopecia universalis (AU), instead of sobbing about my "still hairlessness" and still being a "weirdo" to some people in the society, I want to celebrate it. Without alopecia, I will never be the person I am today.

Being AU also marked the beginning of a blessed life.

Before I speak furthermore on how AU has affected my life, to all who is new to AA or AU, you are most welcome to learn about it through my previous blog postings (clicking on the topic will link you to the post):

1. Explaining Alopecia Areata and Auto-immune disease
2. Understanding the role of T-Cytotoxic & T-Helper Lymphocytes
3. Alopecia Areata as an Auto-immune disease
4. Should Alopecia Areata patients strengthen their immune systems?
5. Wouldn't the T-Lymphocytes around the hair follicle of an AA patients die?

There is no cure yet eventhough there are various form of treatments available, from the immunosuppresants to acupuncture to ayuverdic. The success of these treatments are not consistent for every patient with AA, I have personally know people living with AA have spontaneous regrowth and complete recovery with any form of treatment at all.

So, thats the end of Part 1 of a series of blog postings in Celebration of my 10th Year of "Hairlessness". This post explain what Alopecia Areata is. Future blogs will talk about living with alopecia.

God bless everyone.

Joshua

A Proud Alopecian :)

p/s: You can post me a comment if you would like to talk to me in private or visit http://www.alopeciaworld.com/ for more advice or support on alopecia areata.

Minimum wage law? YES or NO?

The previous article presents the minimum wage dilemma. Eventhough many middle-class and low-income group may favour a minimum wage policies, goverments of emerging economies (a.k.a. developing countries) may delay introducing a minimum wage policies due to the fact "As an emerging country, the pressure to maintain low wage policies has been considered as an unfortunate – but necessary — outcome in order to achieve low unemployment rates and steady job growth. Overseas manufacturing-based industries will automatically seek out the most efficient labour market for their plant locations. Thus, we should not misguide and sacrifice workers’ wages in a “race to the bottom” and compensate with foreign direct investment inflow. "

Goverments with no minimum wage policies (low wages policies) are often seen good on the record with low unemployment rates and up-to-expected foreign direct investment inflow. The author of the previous article posted on this blog calls for "improving infrastructure, enhancing labour productivity and labour movements, establishing better vocational training, eliminating political influence over the minimum wage avoiding drastic increases, and implementing good governance policies."

 

In my opinion, minimum wage should be implemented with the objective of eradicating hardcore poverty and cushion the effect of stagnant wages and rising cost of living. There should be a general minimum wage policy, followed by fine-tuned conditions under it. For example, a labourer may have a lower minimum wage if lodging/ accomodation and/or meals/ and/or transportation are provided by the employer, reflecting the current rising cost of living.

 

Minimum wage policy should be determined by the purchasing power of the residents of the country/ state. (United States has a federal minimum wage, and state minimum wage which the higher wage is enforced). For example, a day's minimum wage (8 to 12 working hours) must exceed the ability of the employee to pay for three descent meals and other basic cost of livings. In a more detailed manner, for a month's minimum wage, an employee is able to pay for 5kg of rice, 2kg of flour, 500gm of sugar, 20 eggs, 2 chickens, 500gm of oil, 200 liter of crude oil and have at least 70% of the wages left for access to healthcare, education, family, savings, and accomodation.

 

It would be undeniable that by enacting a minimum wage policy (in a country without that policy) will lead to a higher unemployment rate because it means a higher production cost for the employers. By setting a minimum wage policy, a goverment may provide options for employers to implement the policy or face a higher corporate tax rate, which it's higher tax revenue will be used to improve workers' skills, vocational training, productivity and quality of education.

 

Remember, enacting a minimum wage policy is not a one-off solution to hardcore poverty and curb inflation but one of the crucial steps to prevent the poor getting poorer and offer an opportunity for hard-working people to improve their standard of living.

 

In the end,

 

1) a good government must serve its people!

2) if the government cannot serve its people, then it should be changed!

3) if a government said that a minimum wage will lead to higher unemployment permanently, then it is not thinking enough! Because the growing population of a country and the world will means a higher demand for food! clothes! education! healthcare! services! Don't tell me you cannot create job opportunities on these sectors, then it should be changed!

 

In Malaysia (year of 2012), I would said an employee without food, accomodation and logistic provided by the employer must get at least RM 1000 or USD$ 320 per month (Federal mimimum wage):,

 

1) RM 300 (Food, RM 10 a day for 30 days)

2) RM 200 (Accomodation, an average room rent-rate per month)

3) RM 90 (Healthcare, insurance)

4) RM 90  (Utility bills, communication bills)

5) RM 90 (Transportation: fuel, maintenance, tickets..etc)

6) RM 120 (Clothing, shoes, savings)

7) RM 110 (Deduction for Employee's Provident Fund for retirement)

 

+ Goverment must strengthen Welfare Insituitions/ Agencies to help poor families with dependent children or elderly, after all RM 1000 is only barely liveable for a single person with no debts or family responsibilities and would still be tough for those who lives in urban areas.

 

States/ Territories (year of 2012) like Penang, Selangor, Kuala Lumpur should have a State/ Council minimum wage of RM 1200 or USD$ 385 per month.

 

MINIMUM WAGE POLICY = OBJECTIVE TO ERADICATE POVERTY + CURB THE BURDEN OF RISING COST OF LIVING

 

That's all I have to say for now :)

 

God bless us all

 

Joshua

 

The minimum wage dilemma — Iwan Ungsi.

ADAPTED FROM THE MALAYSIAN INSIDER.

FEB 15 (2012) — “Labour was the first price, the original purchase-money that was paid for all things. It was not by gold or by silver, but by labour, that all wealth of the world was originally purchased.” (Adam Smith) The recent series of labour strikes in Bekasi marked the end of the euphoria that followed the Indonesia’s achievement of investment grade. It took 14 years for Indonesia to arrive at this level, yet disputes between employers and labourers remain unabated. Invariably, these disputes are so easily predicted that the public seems to be more apathetic to the workers’ cry for their basic rights through their only weaponry: labour strikes, ranging from peaceful demonstrations at local government (or legislative council) buildings to occupying and paralysing major city roads. Equally, employers counteract with their own version and weapon of choice. Where mobility of capital is fluid in the increasingly globalised world economy, relocation could be one option to consider if businesses view profits as no longer viable due to increases in labour costs. Typically, cost-cutting exercises in organisations rely on redundancy measures, but this is no longer a workable alternative due to restrictions in the present labour regulation, established in 2003, requiring employers to pay huge severance packages to laid-off workers.

Analysing the situation at hand, both employers and workers are trapped in a zero-sum game, with each party appearing to emulate the “prisoner’s dilemma” game theory model, whereby both parties appear to choose to not cooperate even though it is in their mutual interest to do so. In this instance, the workers use strikes to halt companies’ productions with the aim to hurt the company’s bottom line, and in turn, the employers might resort to relocation in order to ensure business continuity albeit with a price. The impact of this relocation signifies unemployment for the majority of the company’s workers. In the final analysis, everybody hurts, nobody wins. Ironically, within the “prisoner’s dilemma” context, the option to choose to collude will provide a far greater benefit to each party as opposed to focusing on their own self-interests. The key to this game theory model is to establish communication between the parties and find common ground in order to seek shared perspectives. Relating to the companies and their workers, the logical win-win scenario (otherwise known as Paretto optimal solutions) would be for both parties to settle their disputes such that the workers obtain their demands of higher wages, and in theory, incentivising the laborers to achieve higher output. The first minimum wage legislation was endorsed by the New Zealand government in 1894. Since then, minimum wage laws have drawn debate all over the world.

Based on International Labour Organization (ILO) reports, 90 per cent of countries implement minimum wage laws. The UK, Australia, Netherlands, France and the US are among the countries that adopt the highest minimum wage; other countries like Singapore choose to enact foreign worker levies as a form of an implicit minimum wage (Chew Soon Beng, Business Time, 2010). In Indonesia, the term became familiar in the 1960s, but it was only introduced in late 1979.

There are two opposing views on minimum wage legislation. The first is concerned with empowering low-income workers and strengthening their bargaining position in salary negotiations amidst the widely available pool of cheap labour due to the abundance of human capital in Indonesia. Workers have no choice but to agree to unacceptably low wages where competition for jobs is stiff. Insufficient job creation to absorb the available labour force is one of the causal factors of the imbalance in the demand and supply in the labour market. On the other hand, the opposing opinion perceives the minimum wage as too limiting and inflexible, concluding that it would inevitability hurt the labour market and consequently harm the country’s international competitiveness. Most of the conflicts over minimum wages have roots in the basic premises of these two opposing views. The remaining discourse is always about labour exploitation vis-à-vis the unemployment rate. As an emerging country, the pressure to maintain low wage policies has been considered as an unfortunate – but necessary — outcome in order to achieve low unemployment rates and steady job growth. Overseas manufacturing-based industries will automatically seek out the most efficient labour market for their plant locations. Thus, we should not misguide and sacrifice workers’ wages in a “race to the bottom” and compensate with foreign direct investment inflow.

In the longer term, low-wage labour policies would not sustainably benefit the country’s competitiveness, as Carolina S. Guina (2009) argued that in the context of global competition, labour regulations and standards emerged as critical factor in attracting foreign direct investment, and low wages could result in low productivity and lower skill levels which would be disincentives for investors. We must strive to reconcile differences between employers and the labour force, seeking all possible solutions. One alternative is to emulate global best practices, which elevate the demand curve by increasing labour productivity and attracting new foreign direct investment. Hence, higher wages come in the same package as higher employment. This is no unrealistic view, as Singapore already did it in the 1980s. Following Chinese leader Deng Xiaoping’s visit in 1979, Singapore PM Lee Kuan Yew forsaw the potential of China and concluded that no country could afford to contend with China if they opened up. Hence, Lee commenced an agenda to divert Singaporeans from the low wage trap. Initial steps were taken such as reforming wage structures, mobilising macro-focused labour unions, establishing the Skill Development Fund and improving the function of the National Wage Council (Chew and Chew 2005). These steps resulted in a nation competitive edge and pushed the country to full employment.

Yet, how do we compare the situation in Singapore with a population of 5.1 million people, from which 1.4 million are foreigners, to the Indonesian context with 240 million people and a 119 million-strong labour force? Presume we multiply the difficulties 50 times, will this be settled? Unfortunately, what Lee predicted more than three decades ago has materialised now that the Chinese dragon has awakened, and currently holds the second largest economy in the world.

We should begin by improving infrastructure, enhancing labour productivity and labour movements, establishing better vocational training, eliminating political influence over the minimum wage avoiding drastic increases, and implementing good governance policies. None of these steps are achievable without tripartite collaboration, but by working together we can compete internationally. — The Jakarta Post

* The writer is a civil servant and graduate student at S. Rajaratnam School of International Studies, Nanyang Technological University, Singapore.

* This is the personal opinion of the writer or publication. The Malaysian Insider does not endorse the view unless specified.

Whitney Houston passes away...

Today, the world mourns its lost of another person blessed with a gift of powerful and angelic voice, Whitney Houston. We do not know how or why she dies yet, but one can only hope that it is not substance/ drug abuse related or it will be a very very very sad ending. It doesn't really matter how she dies now, but what is more important that we must not lose faith, continue to believe in hope in the world despite despair, knowing that God Almighty still loves you and me dearly.

While radio stations and news pay tribute to Whitney Houston by her famous song "I'll always love you". I personally pay tribute to her through another song which it "When You Believe" featuring Mariah Carey as well.

The song sung by two gifted beautiful person reminds us of a miracle of epic proportion, when God led Israelites out of the land of slavery, Egypt (>2000 B.C) in the movie "THE PRINCE OF EGYPT". Remember, the God today is the SAME God that led the Israelites out of Egypt, so my friends, BELIEVE.

Rest in Peace, Whitney.

God bless us all.

Joshua