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Wednesday, 25 July 2012

Stop playing race game in Malaysian politics

The country has changed so much since 1969 that to keep using the argument that we are on the verge of race war is rather obsolete.

I WAS wondering when it was going to happen; when certain quarters were going to dust off that old chestnut of May 13, 1969, and use it as a political tool.

It all seems terribly coincidental that as the general election draws nearer, suddenly race riots get inserted into political speech, and a movie about May 13 is apparently waiting to be released.

The country has changed so much since 1969 that to keep using the argument that we are on the verge of race war is rather obsolete.

Let’s look at some facts. Firstly, the vast majority of the Malaysian population were not even born in 1969.

This means that first-hand knowledge of that terrible time is simply not part of most of us. Without that emotional connection, I believe that younger Malaysians are willing to question the feasibility of such a thing happening again.

And really, could it? In 1969, the politics of the nation was so very clearly divided along racial lines. The Opposition was not united as it is today. PAS won 12 seats, DAP 13 and Gerakan 8.

They were not part of a coalition and each stood on its own, therefore it was possible to play the race game because, in Kuala Lumpur and Selangor in particular, the Opposition had the face of “the other”.

Today, with the Pakatan coalition in existence, the Opposition is a much more complex animal. If the Opposition wins, how can the race card be played when two of the component parties are so predominantly Malay?

Let’s take a look at recent events that has got some powerful people’s knickers in a twist.

In particular the Bersih demonstrations of 2007, 2011 and 2012. The demographics of these events were multi-ethnic and became even more multi-ethnic with each progressive one.

By the time of this year’s Bersih demonstration, the make-up of the people who took part was much closer to the make-up of the country as a whole. However, the predominant ethnic group was still Malay.

This goes to show that the political divide, not of political parties but of ordinary citizens, can no longer be conveniently divided along ethnic lines.

Significant numbers of Malaysians, regardless of their background, can be united when they have a common political goal, in this case clean and fair elections.

Furthermore, ethnic Malays can be vocally unhappy with the status quo. In the present-day scenario, it is ridiculous to say that the politics in Malaysia is simply a matter of Malays versus Non-Malays.

And let us look at the 2008 elections. The results were unprecedented and surprised most people. I remember that night very well, as the results became clear that Barisan had lost their two-thirds majority and five state governments.

I decided to drive around Kuala Lumpur, just to see what would happen. And what happened? Nothing.
The streets were quiet. No celebratory parties, no processions, no fireworks; nothing.

The Opposition and their supporters on the streets were as muted as the Barisan and their supporters.

No gloating, no taunting, no excuses at all to provoke a reaction from the supporters of the powers-that-be.

I am certain that if a similar result is achieved in the next elections, the same would happen. There will be no provocation from the opposition and their supporters.

That is not to say there will not be any trouble. Recent events in this country have proven that there are gangs of thugs who are willing to be violent for political purposes.

The thing is though, I believe that the Malaysian public are not going to rise to the bait.

I fervently hope we will show them that we are better than them, we are nobler than them and they are nothing but hooligans with delusions of grandeur.

No, the danger that faces this country will not come from race riots.

If we have trouble in Malaysia, it will be if there is a prolonged disrespect for true democratic principles.

If the election process is not transparent and fair, if the result of a clean election is not respected, then and only then should we start to worry.

BRAVE NEW WORLD
By AZMI SHAROM

The modern day slacker

It is this type which frustrates the hardworking Malays, who have worked so hard to bust the myth of the lazy Malay, the subsidy-mentality-bumi, and gives them a bad name.

YOU would have known at least two of this type: the young Malay boy in his late 20s to mid-30s who has the potential, but for no reason at all, seems intent on ruining his life, by simply being lackadaisical and complacent. He is the slacker.

It is this type which frustrates the hardworking Malays, who have worked so hard to bust the myth of the lazy Malay, the subsidy-mentality-bumi, and gives them a bad name.

The latter, who come from various economic backgrounds, burn the midnight oil at their corporate jobs. Some take on another as a side income or work at two jobs.

Their partners or spouses are equally as hardworking, but when drawn into conversation about the idle Malay boy, both will throw their hands up in the air.

Talk to non-Malay professionals and they say nonchalantly, “That’s what you get when you hire these Malays.”

A successful bumi businessman told me once that he hires only young non-Malays, because he had been duped too many times by the boys he wanted to help.

These boys, who seem to be mushrooming by the day, are articulate, and do keep abreast of current events. Interestingly, these boys mainly come from working class backgrounds.

They’re not unintelligent. Have a chat with them – they can be so perceptive that you wonder why they are not in politics or a think-tank. And yet, they are in debt, and seem to relish in their financial piccadiloes; when they are offered opportunities, they take and screw them up halfway.

The reasons are unbelievable: I broke up with my girlfriend. I don’t have money. I don’t have the ilham. My friend owes me money. I owe myself money.

However, despite their apparent flaws, they complain about how the world owes them a living. The government should give me a grant. The government owes me a living because I’m Malay and poor.

People don’t like me because I’m not connected. Girls don’t want to date me because I’m poor and directionless.

Granted, some do try. But they look for short cuts.

Some of them become the “shadows” of the bodyguards, the lesser datuks and proxies to the middleman to the PA to the right-hand man of the “Man Himself”, in vain hopes for a small cut.

If they are lucky, they take back RM5,000. They create small enterprises and mark up costs that defy business logic, that in the end they have to close shop.

The opportunities are already there. Yes, our education system is not perfect, but many have come out from it better and richer.

I also do not deny that working or doing business is not easy either. Yet there are many Malaysian success stories.

Blame the NEP if you want, but the truth is, many have also thrived sans it. Some packed up their bags and moved abroad without a degree or connections. The Internet is at your disposal – for all this talk about not having money, a good number of these boys have a working computer. Mac, no less. So work from home.

Work with clients from everywhere! A friend once hired a Nigerian student in Nigeria to create his website. That young boy from the sticks of Nigeria delivered a really swoosh website within a month.

When asked why they are so dismissive of politics and youth activities, they can tell you, “It’s a waste of time. We’re not America. There’s a tradition of activism there, not here. Besides, we’re the grassroots. The government should take care of us and provide us with incentives.”

How can any government do so, and why should it? This is not about opportunities but attitude!
There is already a social and economic imbalance which will worsen.

Many marriages break down, and some of the increasing reasons I hear from my syariah lawyer friends are that these boys are complacent and do not contribute to the marriage financially.

They do not pick up the slack at home by being the housekeeper, and expect the wives to fund two families. Theirs and his.

Some resent their wives’ successes and create problems. Some of them bring their debts into the family equation.

Economically, if more and more of these youths opt to be slackers, the country’s GDP will go down greatly and crumble into a declining and worsening economy.

The divide between the haves and have-nots will widen. The gender imbalance is already there: More young (Malay) women are in tertiary institutions and working very hard.

Quite a number have told me they fear marriage because they do not want to be beholden to a spouse who cannot contribute to a marriage.

At this juncture, this begs another question.

Why are a good number of young and working class Malays complacent? Sometimes, I feel that the foreign workers deserve citizenship because they work and somehow manage to save for their families back home.

They live in the most deplorable living conditions, and some worse than the shacks I have seen in my kampung.

The question should no longer be about whether Malay youths are politically apathetic. The question should be how to make these boys work and be motivated.

It is a study I greatly welcome and would like to do.

A WRITER'S LIFE By DINA ZAMAN

Tuesday, 24 July 2012

Rude awakening for Kuala Lumpur

Kuala Lumpur ranked way down in Reader’s Digest latest appraisal

PETALING JAYA: Some things do not seem to change in Malaysia and foremost among them are rudeness and inconsiderate behaviour.

Six years ago, Reader's Digest placed Malaysia's rudeness level at 33 out of the 35 countries ranked.
The latest appraisal by the magazine shows Kuala Lumpur almost at the bottom of a list of Least Courteous Cities at number 34 out of 36 major cities in the world.

So impatient: Commuters trying to get into a train even before other passengers have alighted.
 
Police records show that more than 20% of the 1.3 million accidents yearly result from aggressive driving behaviour but inconsiderate and risky conduct on the roads remain the main complaints, according to findings in The Star Online's Facebook page (www.facebook/thestaronline) survey.

Other selfish acts like ignoring signs against smoking, eating and littering, and rushing in to lifts, trains and buses before allowing people to exit are also high on the list.

Poor toilet etiquette, talking loudly on phones even in cinemas, being late for appointments, not saying “thank you” and leaving trolleys in parking lots are the other bad habits that Malaysians continue to practise shamelessly.

Click on image to view bigger image.
 
Academic counsellor Joshua Johnson, 31, said the most common examples of bad drivers were those who did not use indicator lights when switching lanes and tailgating road bullies.

Christopher Oh, 25, a research assistant, said he was peeved by smokers who disregarded no-smoking signs in enclosed areas.

Describing them as rude public hazards, he said: “Smoking in a non-smoking area is thoughtless and irresponsible because second-hand smoke is harmful, especially to non-smokers,” he said.

Kevin Mcintyre, a Scottish expatriate working in Kuala Lumpur, said he missed his stop on the train because people were rushing into it as he was trying to get out.

“It was rude and caused me a great inconvenience,” he said.

A Keretapi Tanah Melayu Berhad spokesman confirmed that such uncaring attitude was common, especially during rush hours.

“Passengers also do not readily offer their seats to pregnant, handicapped or elderly passengers,” he added.

He said that during off-peak periods, there were also male passengers who indiscriminately boarded coaches reserved for women, ate on board, smoked and also littered.

In GEORGE TOWN, Penang Senior Citizens Association president Lawrence Cheah noted that young Malaysians were not as polite as their Singaporean counterparts.

“In Singapore, they willingly give up their seats on public transport,” he said.

He said that despite the higher level of literacy, people seemed to have adopted a less caring attitude.

“In the old days, people were more civic-minded, although they were not as highly educated as today,” he added.

Eden Handicap Service Centre assistant unit head S.K. Lee said it was meaningless to be highly educated if one behaved rudely.

“Parking in lots for the disabled and using public toilets meant for such people is very bad and rude behaviour,” he said.

Reports by YVONNE LIM,QISHIN TARIQ and CHRISTINA CHIN, The Star/Asia News Network

Monday, 23 July 2012

The yuan goes global: Money talks and London is listening to the yuan

The Chinese currency is fast gaining weight worldwide and becoming a key topic of conversation for bankers.

THE fashionable youths in hot pants flocking to high-end department stores in London and bankers in dark suits walking in and out of skyscrapers in the financial district have one thing in common, a growing interest in the Chinese currency.

During the recent holiday to celebrate the Diamond Jubilee of Queen Elizabeth II, Harrods, a department store known for its ties with the British royal family, launched its own Sina Weibo, a popular Chinese social media platform, to attract more Chinese customers. Shoppers can find “the very latest, limited edition and exclusive products”, with Hermes, Chanel and Louis Vuitton among the most popular brands, according to the store’s spokesman.

More than 100 UnionPay payment terminals in the store also help to make Chinese shoppers feel more at home. Through the machines, part of China’s unified bank card network, Chinese visitors can pay for their purchases with the same cards they use at home.

Hear, hear: A man walking past the London Stock Exchange in London. London is now a yuan offshore trading centre, which will help both Chinese and European business people to avoid foreign exchange risks. — China Daily/Asia News Network
 
A few streets from Harrods, a billboard featuring a green jade dragon shaped like the yuan symbol stands outside a bank. The ad reads: “A new global currency is emerging. Be part of it.” The commercial is for HSBC, a bank rooted in the silk and tea trade between China and Britain in the 19th century.

The UnionPay terminals, the jade dragon advertisements and the shops on the streets of London offering exchange services between the British pound and the yuan are the tip of the iceberg in the biggest story in the financial markets today: the internationalisation of the Chinese currency.

As people search for a bright spot amid sluggish economic growth in the West, beset as it is by the European debt crisis, companies, investors and financial institutions are increasingly focused on the yuan. From Beijing to Hong Kong, Tokyo to London, policymakers and businesses are part of the push.

There are several forces driving this move, both at home and abroad. The People’s Bank of China has made several moves this year to liberalise the exchange rate; George Osborne, the UK chancellor of the exchequer, took the initiative to develop London into an offshore trading centre for the yuan earlier this year; and this month, the yuan became convertible with the Japanese yen under an agreement between the Chinese and Japanese governments.

“All of it demonstrates that the Chinese government is pushing forward the internationalisation of the yuan and encouraging the use of yuan offshore. That will help the global economy in many ways,” said Adam Tyrrell, head of European capital markets for Standard Chartered in London.

Greenback to redback

These initiatives will have a profound influence on the development of trade. For instance, China and Europe are each other’s largest trading partners, but, up till now, the bulk of that trade has been settled in the US dollar. If a Chinese company buys pork from a UK company, it does not buy and sell in yuan, the pound or the euro. It settles in dollars.

That paradox is changing. Now the same pork company can open a yuan account at a British bank such as HSBC or Standard Chartered, or a Chinese bank that operates in Europe, such as Bank of China or Industrial and Commercial Bank of China, and can then invoice the goods or settle the deal with its Chinese clients in their national currency.

The advantage of this is clear: Settling in yuan helps both sides to avoid foreign exchange risks and reduces transaction costs. For instance, in 2008, many companies in southeast China had to lay off workers and close factories because they were losing money through currency appreciation.

That situation would have been different if the contracts had been signed in yuan, because the agreements would have a fixed value no matter what the change in the exchange rate.

The initiative can also benefit companies outside the European time zone, given London’s position as the world’s foreign exchange centre. “The beauty of London is not just about London,” said Patrick Law, Hong Kong-based managing director and head of trading for Greater China at Barclays. “If you look at the London time zone, it covers both the northern and southern hemispheres.” And that means it will also help facilitate business between China and Africa and the Middle East.

“Africa is a very interesting market to look into because China and Africa have a lot of business together,” Law said. He added that Barclays, a bank with strength in commodity trading, began to conduct trade between the South African rand and yuan from April.

Uncle Sam to dim sum

The internationalisation of the yuan will also offer a new platform for companies and investors looking for alternative methods of financing.

The “dim sum bond” got its name from delicacies in Chinese cuisine such as spring rolls, shrimp dumplings and steamed buns. The name has been appropriated for fixed income denominated in yuan and was started in Hong Kong when the city became the first offshore centre for yuan trading. The bond has become increasingly popular outside Asia and grew rapidly in Europe last year, according to Standard Chartered’s Tyrrell.

British banks were involved in five dim sum bond deals with European companies and financial institutions last year. It has also been involved in three client deals so far this year, according to Tyrrell: “Over time, as the yuan is used more, more European corporations and financial institutions will be interested in transacting in yuan, either for their China business, when they can remit onshore, or as a way of diversifying their investor base.”

The motivation for getting involved in dim sum bonds is also changing, he said. When the yuan market first developed offshore, a lot of investors were looking for a currency play rather than a bond play. At first, investors were looking to invest in the currency because they thought it was going to appreciate.

“Over time, it is developing into a more mature bond market,” said Tyrrell. “It will tend to be more driven by traditional bond market influences.”

Chances and problems

That’s particularly true this year, because of the fragile state of the global economy. If the investor sentiment is not there, there will be fewer bond issuances, according to Tyrrell. “There is definitely momentum in the yuan. It will not stop. It will grow,” he said.

Given the fact that the yuan is still not fully convertible, there is still a lot of work to be done to encourage people to hold it and conduct business with it, as they do with dollars.

The main issue for London as it attempts to develop into an offshore yuan trading centre revolves around the lack of liquidity. That’s due to both a paucity of knowledge about the yuan market and the limits of infrastructure to facilitate trade flows.

“Without liquidity, we cannot grow the pie and make the market more efficient,” Law said. “Everybody is definitely very interested. The current situation is that people have just started looking into it,” he said. “The involvement is still relatively small, but the amount of interest is actually very high.”

Some observers have suggested that the pool of yuan liquidity in London can grow through a huge variety of sources. For instance, Standard Chartered recently issued yuan-denominated European Commercial Paper to investors in Europe.

“ECP is issued to investors. Then Standard Chartered holds the liquidity in yuan and can use that for trade finance. This will help to increase trade flows with China for European clients,” Tyrrell said.

“As investors become more comfortable holding yuan, it will help build liquidity here.”

By Diao Ying, China Daily/Asia News Network

US poverty on track to rise to highest since 1960s

This photo shows new parents Garrett Goudeseune, 25, Laura Fritz, 27, left, with their daughter Adalade Goudeseune, as they pose for a photo at the Jefferson Action Center, an assistance center in the Denver suburb of Lakewood. Both Fritz and Goudeseune grew up in the Denver suburbs in families that were solidly middle class. But the couple has struggled to find work and are now relying on government assistance to cover food and $650 rent for their family. The ranks of America's poor are on track to climb to levels unseen in nearly half a century, erasing gains from the war on poverty in the 1960s amid a weak economy and fraying government safety net. Census figures for 2011 will be released this fall in the critical weeks ahead of the November elections. (AP Photo/Kristen Wyatt)

The ranks of America's poor are on track to climb to levels unseen in nearly half a century, erasing gains from the war on poverty in the 1960s amid a weak economy and fraying government safety net.

Census figures for 2011 will be released this fall in the critical weeks ahead of the November elections.

The Associated Press surveyed more than a dozen economists, think tanks and academics, both nonpartisan and those with known liberal or conservative leanings, and found a broad consensus: The official poverty rate will rise from 15.1 per cent in 2010, climbing as high as 15.7 per cent. Several predicted a more modest gain, but even a 0.1 percentage point increase would put poverty at the highest level since 1965.

Poverty is spreading at record levels across many groups, from underemployed workers and suburban families to the poorest poor. More discouraged workers are giving up on the job market, leaving them vulnerable as unemployment aid begins to run out. Suburbs are seeing increases in poverty, including in such political battlegrounds as Colorado, Florida and Nevada, where voters are coping with a new norm of living hand to mouth.

"I grew up going to Hawaii every summer. Now I'm here, applying for assistance because it's hard to make ends meet. It's very hard to adjust," said Laura Fritz, 27, of Wheat Ridge, Colo., describing her slide from rich to poor as she filled out aid forms at a county centre. Since 2000, large swaths of Jefferson County just outside Denver have seen poverty nearly double.

Fritz says she grew up wealthy in the Denver suburb of Highlands Ranch, but fortunes turned after her parents lost a significant amount of money in the housing bust. Stuck in a half-million dollar house, her parents began living off food stamps and Fritz's college money evaporated. She tried joining the Army but was injured during basic training.

Now she's living on disability, with an infant daughter and a boyfriend, Garrett Goudeseune, 25, who can't find work as a landscaper. They are struggling to pay their $650 rent on his unemployment checks and don't know how they would get by without the extra help as they hope for the job market to improve.

In an election year dominated by discussion of the middle class, Fritz's case highlights a dim reality for the growing group in poverty. Millions could fall through the cracks as government aid from unemployment insurance, Medicaid, welfare and food stamps diminishes.

"The issues aren't just with public benefits. We have some deep problems in the economy," said Peter Edelman, director of the Georgetown Centre on Poverty, Inequality and Public Policy.

He pointed to the recent recession but also longer-term changes in the economy such as globalisation, automation, outsourcing, immigration, and less unionisation that have pushed median household income lower. Even after strong economic growth in the 1990s, poverty never fell below a 1973 low of 11.1 per cent. That low point came after President Lyndon Johnson's war on poverty, launched in 1964, that created Medicaid, Medicare and other social welfare programs.

"I'm reluctant to say that we've gone back to where we were in the 1960s. The programs we enacted make a big difference. The problem is that the tidal wave of low-wage jobs is dragging us down and the wage problem is not going to go away anytime soon," Edelman said.

Stacey Mazer of the National Association of State Budget Officers said states will be watching for poverty increases when figures are released in September as they make decisions about the Medicaid expansion. Most states generally assume poverty levels will hold mostly steady and they will hesitate if the findings show otherwise. "It's a constant tension in the budget," she said.

The predictions for 2011 are based on separate AP interviews, supplemented with research on suburban poverty from Alan Berube of the Brookings Institution and an analysis of federal spending by the Congressional Research Service and Elise Gould of the Economic Policy Institute.

The analysts' estimates suggest that some 47 million people in the U.S., or 1 in 6, were poor last year. An increase of one-tenth of a percentage point to 15.2 per cent would tie the 1983 rate, the highest since 1965. The highest level on record was 22.4 per cent in 1959, when the government began calculating poverty figures.

Poverty is closely tied to joblessness. While the unemployment rate improved from 9.6 per cent in 2010 to 8.9 per cent in 2011, the employment-population ratio remained largely unchanged, meaning many discouraged workers simply stopped looking for work. Food stamp rolls, another indicator of poverty, also grew.

Demographers also say:

—Poverty will remain above the pre-recession level of 12.5 per cent for many more years. Several predicted that peak poverty levels — 15 per cent to 16 per cent — will last at least until 2014, due to expiring unemployment benefits, a jobless rate persistently above 6 per cent and weak wage growth.

—Suburban poverty, already at a record level of 11.8 per cent, will increase again in 2011.

—Part-time or underemployed workers, who saw a record 15 per cent poverty in 2010, will rise to a new high.

—Poverty among people 65 and older will remain at historically low levels, buoyed by Social Security cash payments.

—Child poverty will increase from its 22 per cent level in 2010.

Analysts also believe that the poorest poor, defined as those at 50 per cent or less of the poverty level, will remain near its peak level of 6.7 per cent.

"I've always been the guy who could find a job. Now I'm not," said Dale Szymanski, 56, a Teamsters Union forklift operator and convention hand who lives outside Las Vegas in Clark County. In a state where unemployment ranks highest in the nation, the Las Vegas suburbs have seen a particularly rapid increase in poverty from 9.7 per cent in 2007 to 14.7 per cent.

Szymanski, who moved from Wisconsin in 2000, said he used to make a decent living of more than $40,000 a year but now doesn't work enough hours to qualify for union health care. He changed apartments several months ago and sold his aging 2001 Chrysler Sebring in April to pay expenses.

"You keep thinking it's going to turn around. But I'm stuck," he said.

The 2010 poverty level was $22,314 for a family of four, and $11,139 for an individual, based on an official government calculation that includes only cash income, before tax deductions. It excludes capital gains or accumulated wealth, such as home ownership, as well as non-cash aid such as food stamps and tax credits, which were expanded substantially under President Barack Obama's stimulus package.

An additional 9 million people in 2010 would have been counted above the poverty line if food stamps and tax credits were taken into account.

Robert Rector, a senior research fellow at the conservative Heritage Foundation, believes the social safety net has worked and it is now time to cut back. He worries that advocates may use a rising poverty rate to justify additional spending on the poor, when in fact, he says, many live in decent-size homes, drive cars and own wide-screen TVs.

A new census measure accounts for non-cash aid, but that supplemental poverty figure isn't expected to be released until after the November election. Since that measure is relatively new, the official rate remains the best gauge of year-to-year changes in poverty dating back to 1959.

Few people advocate cuts in anti-poverty programs. Roughly 79 per cent of Americans think the gap between rich and poor has grown in the past two decades, according to a Public Religion Research Institute/RNS Religion News survey from November 2011. The same poll found that about 67 per cent oppose "cutting federal funding for social programs that help the poor" to help reduce the budget deficit.

Outside of Medicaid, federal spending on major low-income assistance programs such as food stamps, disability aid and tax credits have been mostly flat at roughly 1.5 per cent of the gross domestic product from 1975 to the 1990s. Spending spiked higher to 2.3 per cent of GDP after Obama's stimulus program in 2009 temporarily expanded unemployment insurance and tax credits for the poor.

The U.S. safety net may soon offer little comfort to people such as Jose Gorrin, 52, who lives in the western Miami suburb of Hialeah Gardens. Arriving from Cuba in 1980, he was able to earn a decent living as a plumber for years, providing for his children and ex-wife. But things turned sour in 2007 and in the past two years he has barely worked, surviving on the occasional odd job.

His unemployment aid has run out, and he's too young to draw Social Security.

Holding a paper bag of still-warm bread he'd just bought for lunch, Gorrin said he hasn't decided whom he'll vote for in November, expressing little confidence the presidential candidates can solve the nation's economic problems. "They all promise to help when they're candidates," Gorrin said, adding, "I hope things turn around. I already left Cuba. I don't know where else I can go."

By Hope Yen Associated Press