OPINION APR 2025

 


A Taste of Malaysia: Where Cultures Blend on Your Plate

Malaysia, a land brimming with cultural diversity, offers a feast for the senses that goes beyond its stunning landscapes and warm smiles. At the heart of this rich tapestry lies its food – a glorious fusion of Malay, Chinese, Indian, and indigenous influences that creates a culinary experience unlike any other. Prepare your taste buds for an adventure as we delve into some of Malaysia's most iconic and beloved dishes!


Imagine the fragrant aroma of Nasi Lemak wafting through the air. This isn't just rice; it's coconut-infused perfection, steamed with pandan leaves, and traditionally served with spicy sambal, crispy anchovies, roasted peanuts, and a hard-boiled egg. Often accompanied by a side of ayam goreng (fried chicken) or rendang (slow-cooked meat in a rich coconut gravy), Nasi Lemak is more than a meal – it's a national treasure, enjoyed for breakfast, lunch, or dinner.


Next up, we have the humble yet utterly satisfying Roti Canai. This flaky, layered flatbread, often served with flavorful dhal (lentil curry) or other curries, is a testament to the Indian influence on Malaysian cuisine. The simple act of tearing off a piece and dipping it into the rich gravy is a pure moment of culinary bliss. And for a little extra indulgence? Try a roti telur (with egg) or roti pisang (with banana).


For those who crave a symphony of spicy and tangy flavors, Laksa is a must-try. This popular noodle soup comes in various regional styles, each with its own unique character. From the rich, coconut milk-based Curry Laksa to the sour and fishy Assam Laksa, each bowl is a delightful explosion of tastes and textures. Slurping up those noodles in the fragrant broth is an experience you won't soon forget.


No exploration of Malaysian food would be complete without mentioning the sizzling delight of Char Kway Teow. These broad rice noodles are stir-fried to perfection with prawns, cockles, Chinese sausage, bean sprouts, and a savory soy sauce mixture. The smoky "wok hei" (breath of the wok) that permeates each strand is what elevates this seemingly simple dish to an art form.


And finally, let's talk about the irresistible allure of Satay. These succulent skewers of marinated meat (chicken, beef, or lamb) are grilled over charcoal, imparting a smoky char and incredible flavor. Served with a rich and nutty peanut sauce, along with refreshing cucumber and onion slices, Satay is the perfect appetizer or snack, embodying the communal spirit often found in Malaysian dining.


These are just a few glimpses into the vibrant and diverse world of Malaysian food. Each dish tells a story of cultural exchange and culinary innovation. So, the next time you have the opportunity, embark on a gastronomic adventure and discover the incredible flavours that make Malaysian cuisine so unique and beloved. You might just find your new favourite dish!


TESSA 27 Apr 2025
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BILL

The Silent Burden: Why Young Malaysians are Drowning in Debt

A quiet storm is brewing in the financial lives of young Malaysians. Recent data paints a worrying picture: over 53,000 individuals under the age of 30 are grappling with a staggering RM1.9 billion in debt. That's nearly US$423 million hanging over the heads of our nation's youth, a burden that can stifle dreams and cast a long shadow on their future.

So, what's fueling this surge in debt? While traditional culprits like credit cards and personal loans still play a role, a new contender has emerged: the increasingly popular "Buy Now, Pay Later" (BNPL) services.


  • The Allure of Instant Gratification: The BNPL Effect

The ease and accessibility of BNPL platforms are undeniably attractive. Unlike traditional credit applications with their stringent approval processes, BNPL often offers instant gratification with minimal checks. This convenience, however, can be a double-edged sword, particularly for those new to managing their finances. The temptation to split purchases into seemingly manageable installments can quickly lead to a snowball effect, with multiple small debts accumulating into a significant financial strain.


  • A Wake-Up Call: Bank Negara Malaysia Steps In

The growing concern surrounding this trend has not gone unnoticed. Bank Negara Malaysia (BNM), the nation's central bank, has rightly proposed stricter regulations for both lenders and BNPL providers. The emphasis is clear: borrowers must demonstrate a genuine ability to repay before being granted credit. This move underscores the need for responsible lending practices and aims to protect young consumers from taking on debt they cannot handle.


  • Beyond Regulation: Empowering Through Financial Literacy

While regulatory measures are crucial, the long-term solution lies in equipping young Malaysians with the essential skills to navigate the complexities of personal finance. The government and various agencies are rightly highlighting the importance of financial literacy. Understanding concepts like budgeting, interest rates, and the long-term implications of debt is paramount in fostering responsible financial habits from an early age.


  • Navigating the Debt Maze: Practical Solutions

For young individuals currently facing the weight of debt, and for those looking to avoid it altogether, here are some crucial steps:

  1. Budgeting is Your Best Friend: Track your income and expenses meticulously. Knowing where your money is going is the first step towards controlling it.
  2. Build an Emergency Fund: Life throws curveballs. Having a financial cushion can prevent you from resorting to debt when unexpected expenses arise.
  3. Prioritize Debt Repayment: If you have existing debts, create a repayment plan and focus on tackling high-interest debts first.
  4. Seek Professional Advice: Don't hesitate to reach out to qualified financial advisors. They can provide personalized guidance and help you develop a sustainable financial strategy.


The rising debt among young Malaysians is a serious issue that demands attention and proactive solutions. By fostering financial literacy, implementing responsible lending practices, and empowering individuals with the tools to manage their finances effectively, we can help this generation build a more secure and prosperous future, free from the silent burden of overwhelming debt.


TESSA 18 Apr 2025
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IMF



Malaysia's Battle with the Rising Waters: A History of Floods and a Call for Resilience

Malaysia, a land blessed with lush rainforests and vibrant monsoons, also carries a heavy burden – a history punctuated by devastating floods. From rapid flash floods to prolonged monsoon deluges, the nation has repeatedly faced the wrath of rising waters, leaving behind a trail of displacement, economic disruption, and loss. Understanding this history is crucial to building a more resilient future for all Malaysians.

The story of Malaysia's struggle with floods stretches back over a century. While localized flooding has likely always been a part of the landscape, documented significant events since the 1920s paint a clear picture of an escalating challenge. Let's delve into some of the key historical flood events that have shaped the nation's understanding and response to this recurring disaster.

Key Historical Floods: A Timeline of Impact
  • 1971 Kuala Lumpur Floods: The Nation's Wake-Up Call This event remains etched in Malaysian history as the worst flash flood the nation has ever witnessed. The sheer force of the water claimed 32 lives and affected a staggering 180,000 people, serving as a stark reminder of the destructive potential of rapid inundation in urban areas.
  • 2006-2007 Johor Floods: A Southern State Under Siege Several districts in Johor, including Muar, Johor Bahru, Skudai, and Segamat, were severely impacted by prolonged flash floods. This event highlighted the vulnerability of even rapidly developing regions to intense rainfall and inadequate drainage systems.
  • 2014-2015 Malaysia Floods: A Nationwide Crisis This large-scale disaster saw multiple states across Peninsular Malaysia – Kelantan, Terengganu, Pahang, Perak, and Perlis – submerged under floodwaters. The impact was widespread, crippling infrastructure, displacing countless families, and demanding a significant national response.
  • 2017 Penang Floods: A City Grapples with Unprecedented Rainfall Penang, a vibrant island state, experienced what was considered its worst flooding since 2007. Reports indicated floodwaters reaching a shocking 3.7 meters in some areas, underscoring the increasing intensity and unpredictability of rainfall patterns.
  • 2021-2022 Malaysian Floods: Decades of Rainfall in Days These floods were described as the worst in decades, particularly impacting Selangor, Pahang, and Kuala Lumpur. Unprecedented heavy rainfall, exacerbated by monsoon conditions, overwhelmed drainage systems and led to widespread devastation in densely populated areas.
  • 2023 Johor Floods: Recurrence in the South Johor once again faced significant flooding, necessitating the establishment of evacuation centers. While the floodwaters eventually receded, the event served as a reminder of the ongoing vulnerability of the state to heavy rainfall.

The Economic Toll: A Growing Concern
The human cost of these floods is immeasurable, but the economic impact is also substantial and on the rise. Recent data from the Department of Statistics Malaysia (DOSM) reveals a concerning trend. In 2024, Malaysia experienced a staggering RM933.4 million in flood losses, a 23% increase from the RM755.4 million recorded in 2023.

This significant jump is attributed to the heavy rainfall associated with the Northeast Monsoon, particularly impacting the east coast states of Kelantan and Terengganu. The DOSM further reported that these losses amounted to 0.05% of the country's nominal Gross Domestic Product (GDP), highlighting the significant macroeconomic implications of these recurring disasters.

Looking Ahead: Building Resilience in the Face of Rising Waters
Malaysia's history of floods serves as a powerful testament to the urgent need for comprehensive and proactive measures to mitigate the impact of these natural disasters. 

This includes:
  • Investing in and upgrading drainage infrastructure: Ensuring that urban and rural areas have robust drainage systems capable of handling increased rainfall.
  • Improving early warning systems: Providing timely and accurate information to allow for effective evacuation and preparedness.
  • Implementing sustainable land-use planning: Considering flood risks in development projects and preserving natural floodplains.
  • Enhancing disaster preparedness and response mechanisms: Strengthening coordination between agencies and ensuring adequate resources for rescue and relief efforts.
  • Raising public awareness and education: Empowering communities with knowledge and skills to prepare for and respond to floods.
  • The increasing frequency and intensity of floods, coupled with the growing economic losses, demand a concerted effort from the government, communities, and individuals. By learning from our history and embracing proactive strategies, Malaysia can strive towards building a more resilient future, safeguarding lives, livelihoods, and the nation's progress in the face of the inevitable rising waters.

TESSA 14 Apr 2025
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PH


Navigating Life as a Foreigner in Malaysia: Opportunities and Challenges

Malaysia, a vibrant multicultural nation in Southeast Asia, has long been a draw for foreigners seeking new opportunities, experiences, or a place to build a life. From the bustling streets of Kuala Lumpur to the serene beaches of Langkawi, the country offers a diverse landscape and a unique blend of cultures. However, life as a foreigner in Malaysia, while often rewarding, also comes with its own set of considerations and challenges.


Entering and Residing in Malaysia:

Malaysia has established various categories under which foreigners can legally enter and reside within its borders. These primarily include:

  • Tourism: Short-term visits for leisure, requiring a valid passport and, for some nationalities, a tourist visa.
  • Work: Individuals seeking employment must obtain a valid work permit or employment pass, typically sponsored by a Malaysian employer.
  • Family: Foreign spouses and dependents of Malaysian citizens or long-term residents can apply for specific visas and permits to reside in the country.

It is crucial for all foreigners to ensure they possess the necessary documentation, including a valid passport with sufficient validity and the appropriate visa or permit issued by the Malaysian Immigration Department. Understanding and adhering to immigration regulations is paramount for a smooth and legal stay.


The Complexities of Integration:

While Malaysia is known for its warm hospitality, foreigners may encounter various complexities during their integration process:

  • Bureaucracy: Navigating government processes and regulations can sometimes be challenging, requiring patience and thorough documentation.
  • Cultural Nuances: Understanding and respecting local customs, traditions, and social etiquette is essential for fostering positive relationships and avoiding misunderstandings. For instance, dressing modestly in certain settings and being mindful of religious sensitivities are important aspects of cultural awareness.
  • Language: While English is widely spoken in urban areas and for business, learning some basic Bahasa Malaysia, the national language, can significantly enhance daily life and integration into local communities.


Controversies and Concerns:

The topic of foreigners in Malaysia is not without its controversies:

  • Treatment of Undocumented Migrants: Reports from human rights organizations have highlighted concerns regarding the treatment of undocumented migrants, including allegations of harsh conditions in detention centers and deportations lacking due process.
  • Xenophobia: While not pervasive, instances of xenophobia and negative stereotypes towards certain groups of foreigners have been reported, posing challenges to social cohesion.
  • Exploitation of Migrant Workers: Concerns persist regarding the rights and welfare of migrant workers, particularly in sectors like construction and domestic work, with reports of exploitation and unfair labor practices.


Foreigners in Business:

Malaysia actively encourages foreign investment and offers various incentives. However, foreigners looking to conduct business may face certain hurdles:

  • Bureaucratic Processes: Setting up and running a business can involve navigating complex bureaucratic procedures and obtaining necessary approvals.
  • Cultural Differences in Business Practices: Understanding local business etiquette and building relationships based on trust and personal connections are crucial for success.
  • Potential for Corruption: While the Malaysian government has made efforts to combat corruption, it remains a potential challenge that foreign businesses need to be aware of.


Overstaying Visas:

Overstaying a visa in Malaysia is a serious offense with significant consequences, including hefty fines, detention, and deportation. The issue of visa overstayers often leads to:


  • Potential for Illegal Activities: Concerns arise that individuals who overstay their visas may engage in illegal activities to sustain themselves.
  • Economic Strain: An undocumented workforce can potentially impact the local job market and social services.
  • Social Tensions: The presence of a large number of undocumented individuals can sometimes lead to social tensions and security concerns.

The Malaysian government periodically conducts crackdowns on illegal immigrants to address these issues, leading to debates about immigration policies and enforcement.


Marrying a Malaysian Citizen and Permanent Residency:

Marriage between Malaysians and non-citizens is relatively common, with an average of around 100,000 such marriages occurring annually. While marrying a Malaysian citizen does not automatically grant permanent residency (PR), it opens a pathway to application.

  • Eligibility for PR through Marriage: Foreign spouses of Malaysian citizens can apply for PR after residing continuously in Malaysia for at least ten years. This period allows the authorities to assess the genuineness and stability of the marriage.
  • General Avenues for Permanent Residency: Besides marriage, foreigners can also obtain PR in Malaysia through other avenues, such as:
  • High-Net-Worth Investment: Individuals who make significant financial investments in the Malaysian economy may be eligible.
  • Exceptional Skills: Foreigners with specialized skills and expertise in high-demand sectors may qualify.
  • Points-Based System: Malaysia may also employ a points-based system that considers factors like age, education, work experience, and language proficiency.


The Undocumented Foreign Worker Population

Estimates from 2017 suggested that a significant portion of the foreign worker population, potentially between 1.23 to 1.46 million, might be undocumented or involved in illegal business activities. This highlights the challenges in managing and regulating the flow of foreign workers and the need for effective enforcement mechanisms.


Conclusion:

Life as a foreigner in Malaysia presents a mix of opportunities and challenges. The country's rich culture, economic prospects, and welcoming nature attract many. However, navigating immigration procedures, integrating into a new society, and understanding local sensitivities are crucial for a positive experience. While controversies surrounding the treatment of undocumented migrants and other issues exist, it is important for foreigners to be aware of their rights and responsibilities and to engage with the local community respectfully. By understanding the landscape and adhering to regulations, foreigners can contribute to Malaysia's vibrant society while building fulfilling lives for themselves.


TESSA 7 Apr 2025
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DBKL


The Tempestuous Relationship: Natural Disasters and Stock Market Volatility
Natural disasters, ranging from devastating earthquakes and hurricanes to widespread floods and wildfires, are more than just tragic events; they are potent disruptors of economic stability, and their impact reverberates strongly through the global stock markets. The delicate balance of investor confidence and market predictability can be shattered in the wake of such calamities, leading to significant volatility and, in severe cases, market crashes.

Disruption to Company Operations and Supply Chains: The Foundation of Instability

At the heart of the issue lies the immediate and tangible damage inflicted upon companies and their operational infrastructure. Natural disasters can obliterate factories, warehouses, and transportation networks, halting production and crippling supply chains. For example, a hurricane striking a major manufacturing hub can lead to prolonged shutdowns, increased operational costs due to reconstruction, and a reduced ability to meet market demands. This directly translates to lower profitability, weakened market competitiveness, and ultimately, a decline in stock prices.   

Investor Sentiment and Risk Aversion: The Psychological Impact

Beyond the physical damage, natural disasters instill a sense of uncertainty and fear in investors. This psychological impact can trigger a wave of risk aversion, leading to a "flight to safety" as investors seek more stable assets like government bonds or gold. This sudden shift in sentiment can cause a significant drop in stock prices, as investors liquidate their holdings in anticipation of further economic instability.   

Sector-Specific Vulnerability: The Uneven Impact

The impact of natural disasters is not uniformly distributed across all sectors. Industries like aviation, hospitality, and tourism are particularly susceptible. A major volcanic eruption disrupting air travel or a hurricane devastating a tourist destination can severely impact these sectors, leading to sharp declines in their stock prices. Similarly, insurance companies often face substantial losses after major disasters, affecting their profitability.   

Emerging Markets: A Greater Vulnerability

Emerging markets, often characterized by weaker infrastructure, less developed financial markets, and less robust institutional frameworks, are particularly vulnerable to the effects of natural disasters. The lack of adequate disaster preparedness and response mechanisms can exacerbate the economic damage and lead to more pronounced stock market volatility.

Long-Term Effects: The Lingering Shadow

The repercussions of natural disasters extend far beyond the immediate aftermath. Companies may suffer long-term damage to their reputations, lose valuable customer relationships, and be forced to restructure their long-term strategies. These factors can continue to weigh on stock prices for months, or even years, after the event.   

Commodity Price Fluctuations: A Counterintuitive Rise

While most sectors experience negative impacts, certain commodities can see a surge in value. Supply chain disruptions caused by natural disasters can lead to shortages of essential resources, driving up prices. For instance, agricultural commodities may experience price hikes if crops are destroyed, or energy prices may rise if oil and gas infrastructure is damaged.   

Household Risk Taking: The Personal Impact

Natural disasters can also influence household investment behavior. Experiencing a disaster firsthand can reduce individuals' willingness to participate in the stock market and lead to a shift towards more conservative investment portfolios. This can further contribute to market volatility and reduce overall market participation.   

Sustainability Performance: The Resilience Factor

Interestingly, research suggests that firms with higher sustainability performance may exhibit greater resilience in the face of natural disasters. Companies with robust environmental, social, and governance (ESG) practices are often better prepared to manage risks and adapt to changing circumstances, potentially mitigating the negative impact on their stock prices.   

Conclusion: Navigating the Storm

The relationship between natural disasters and the stock market is complex and multifaceted.

Understanding the various channels through which these events impact market dynamics is crucial for investors and policymakers alike. While predicting the precise timing and magnitude of natural disasters is impossible, recognizing their potential to cause significant market volatility is essential for informed decision-making. Investors should diversify their portfolios and consider the resilience of companies in disaster-prone regions. Governments and businesses need to prioritize disaster preparedness and invest in sustainable infrastructure to mitigate the economic consequences of these inevitable events.   


TESSA 1 Apr 2025
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ASEAN

GKUM

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