Chinese leading quantum physicist Pan Jianwei, an academician of the Chinese Academy of Sciences, and his colleagues announced they have built world's first quantum computing machine at a press conference in the Shanghai Institute for Advanced Studies of University of Science and Technology of China on Wednesday. -- People's Daily
CHINESE scientists have built the world's first quantum computing machine that goes far beyond the early classical -- or conventional -- computers, paving the way to the ultimate realization of quantum computing.
Scientists announced their achievement at a press conference in the Shanghai Institute for Advanced Studies of University of Science and Technology of China on Wednesday.
Scientists believe quantum computing could in some ways dwarf the processing power of today's supercomputers. One analogy to explain the concept of quantum computing is that it is like being able to read all the books in a library at the same time, whereas conventional computing is like having to read them one after another.
Pan Jianwei, an academician of the Chinese Academy of Sciences and a leading quantum physicist, said quantum computing exploits the fundamental quantum superposition principle to enable ultra-fast parallel calculation and simulation capabilities.
In normal silicon computer chips, data is rendered in one of two states: 0 or 1. However, in quantum computers, data could exist in both states simultaneously, holding exponentially more information.
The computing power of a quantum computer grows exponentially with the number of quantum bits that can be manipulated. This could effectively solve large-scale computation problems that are beyond the ability of current classical computers, Pan said.
For example, a quantum computer with 50 quantum bits would be more powerful in solving quantum sampling problems than today's fastest supercomputer, Sunway TaihuLight, installed in the National Supercomputing Center of China.
Due to the enormous potential of quantum computing, Europe and the United States are actively collaborating in their research. High-tech companies, such as Google, Microsoft and IBM, also have massive interests in quantum computing research.
The research team led by Pan is exploring three technical routes: systems based on single photons, ultra-cold atoms and superconducting circuits.
Recently, Pan Jianwei and his colleagues -- Lu Chaoyang and Zhu Xiaobo, of the University of Science and Technology of China, and Wang Haohua, of Zhejiang University -- set two international records in quantum control of the maximal numbers of entangled photonic quantum bits and entangled superconducting quantum bits.
Pan explained that manipulation of multi-particle entanglement is the core of quantum computing technology and has been the focus of international competition in quantum computing research.
In the photonic system, his team has achieved the first 5, 6, 8 and 10 entangled photons in the world and is at the forefront of global developments.
Pan said quantum computers could, in principle, solve certain problems faster than classical computers. Despite substantial progress in the past two decades, building quantum machines that can actually outperform classical computers in some specific tasks -- an important milestone termed "quantum supremacy" -- remains challenging.
In the quest for quantum supremacy, Boson sampling, an intermediate (that is, non-universal) quantum computer model, has received considerable attention, as it requires fewer physical resources than building universal optical quantum computers, Pan said.
Last year, Pan and Lu Chaoyang developed the world's best single photon source based on semiconductor quantum dots. Now, they are using the high-performance single photon source and electronically programmable photonic circuit to build a multi-photon quantum computing prototype to run the Boson sampling task.
The test results show the sampling rate of this prototype is at least 24,000 times faster than international counterparts, according to Pan's team.
At the same time, the prototype quantum computing machine is 10 to 100 times faster than the first electronic computer, ENIAC, and the first transistor computer, TRADIC, in running the classical algorithm, Pan said.
It is the first quantum computing machine based on single photons that goes beyond the early classical computer, and ultimately paves the way to a quantum computer that can beat classical computers. This achievement was published online in the latest issue of Nature Photonics this week.
In the superconducting quantum circuit system, a research team from Google, NASA and the University of California at Santa Barbara announced a high-precision manipulation of 9 superconducting quantum bits in 2015.
Now the Chinese team led by Pan, Zhu Xiaobo and Wang Haohua have broken that record. They independently developed a superconducting quantum circuit containing 10 superconducting quantum bits and successfully entangled the 10 quantum bits through a global quantum operation.
Chinese scientists aim to realize manipulation of 20 entangled photons by the end of this year, and will try to design and manipulate 20 superconducting quantum bits. They also plan to launch a quantum cloud computing platform by the end of this year.
Angry investors who lodged a police report at the Pekan Kinrara station. Waiting for answers:
His first investment scheme failed with losses estimated at between RM400mil and RM1.7bil but JJPTR founder Johnson Lee has brazenly come up with a new one offering even higher returns of 35% a month and with a car, motorcycles and smartphones thrown in as lucky draw prizes. Many of his investors still have faith in him but those in another scheme, Change Your Life, are in a quandary. They now have to choose between getting lower returns or changing to ‘life points’ – and waiting.
Show me the money: Investors making enquiries at Icon City in Bukit Tengah, Bukit Mertajam. The money scam issue has got many who have parted with their savings feeling anxious
After the spectacular collapse of his previous financial scheme, purportedly because of a hacked account, controversial scheme operator Johnson Lee has rolled out a new plan, claiming to offer even better returns.
While JJPTR’s earlier scheme – which ended with RM500mil missing from the company’s account – offered returns of 20% a month, this new one offers 35%.
On top of that, it offers special lucky draws with a new car, motorcycles and smartphones as prizes.
What the company did not say in the shining glossary of the new plan is how Lee plans to address the US$400mil (RM1.73bil) losses he claims the company has incurred.
The new scheme also does not explain how he plans to repay those who lost their money to the earlier scheme.
The one-and-a-half minute video Lee uploaded shows that the new plan is based on a “split mechanism” and has three rounds.
The initial investment in US dollars is “split” or doubled in each round. Half of it is re-invested in the scheme and rolls over to the next round.
Each round lasts 10 days and investors are allowed to convert their earnings back to ringgit after three rounds.
Anyone who invests US$1,000 (RM4,331) is expected to receive US$450 (RM1,949) in each round, making it a return of US$1,350 (RM5,847) by the end of round three.
Under the proposed new scheme, investors will also be rewarded with JJ Points, which can be used in exchange for goods via its shopping platform JJ Mart.
The new scheme was announced by the 28-year-old Lee last Tuesday after news broke that his company had gone bust.
The company did not say when the new plan would start.
Attempts to contact Lee were futile and the number listed on the JJPTR Facebook page is already out of service.
A visit to the company’s offices in Penang showed that investors were no longer lining up for answers.
Instead, the staff, who preferred not to be photographed, were seen sitting at empty counters.
Penang-based JJPTR, or Jie Jiu Pu Tong Ren in Mandarin (salvation for the common people), came under the spotlight when investors complained that they did not get their scheduled payment last month.
JJPTR, JJ Poor to Rich and JJ Global Network are among the entities listed as unauthorised companies under Bank Negara Malaysia’s Financial Consumer Alert.
Records from the Companies Commission of Malaysia showed that JJ Global Network was a “RM2 company” owned by Lee and his former girlfriend Tan Kai Lee, 24. Each hold a single share.
Lee’s father Thean Chye, 58, and Tan are also directors of another company called JJ Global Network Holdings Bhd.
Thean Chye, who was an assistant professor at Southern University College in Johor, resigned on Wednesday after the JJPTR losses came to light.
Source: The Star/ANN
Investor tells off staff after failing to get refund
Business as usual: Employees explaining the refund process and new scheme to investors at the JJPTR main office in Perak Road, Penang.
GEORGE TOWN: An investor, frustrated over not getting a promised refund on his stake, told off several female employees at the main JJPTR office in Perak Road.
The man, in his 40s, was heard having an exchange of words with the staff after being told that it may take “a few more days” before he could get his money.
He told them Johnson Lee, the founder of JJPTR, had said that the money was refunded to JJ2 scheme investors some days ago.
“But until today, I haven’t got my money back.
“I just want to know if the refund has been made or are you in the midst of processing the refund?
“If he has not started the refund, just be honest with the investors.”
He insisted on getting a firm date on when he would get back his money but the employees replied that they would need at least five working days.
He then demanded their names but they refused him.
“You don’t even dare give me your names. If I want to lodge a report, I won’t be able to provide the police with details.
“And don’t tell me you need days for a bank transfer. It only takes hours,” he said.
As he left the office, several journalists approached him for comment but were turned down.
“I don’t want to talk to reporters. You are all just causing trouble for us. I can get things done on my own,” he said.
JJPTR, or Jie Jiu Pu Tong Ren (“salvation for the common people” in Mandarin), is a Penang-based company that came under the spotlight when its investors complained that they did not get their scheduled profits last month.
According to online and media reports, the investors stand to lose RM500mil. They reportedly number in the tens of thousands, comprising Malaysians and foreigners from Canada, the United States and China.
Lee, who has blamed the loss on hackers, put the figure at US$400mil (RM1.75bil) in a widely-circulated video clip.
JJPTR, JJ Poor to Rich and JJ Global Network are listed as unauthorised companies by Bank Negara Malaysia.
Source: The Star/ANN
JJPTR just trying to buy time, says ‘scam buster’
“Scam buster” Afyan Mat Rawi has ridiculed JJPTR’s new plan, calling it “unsustainable” and nothing but a forex scheme to placate angry investors.
Once a victim of an investment scam himself, the 37-year-old financial adviser said investors should stay away from the scheme, which he described as “illogical”.
“The investors are angry right now, and JJPTR is trying to pacify them by introducing this new plan.
“A 35% return at the end of the three rounds (one month) is illogical. Where would the company find all the money to reinvest?
“The new plan is just a way for them to buy time,” Afyan said.
He said any investment scheme promising returns of more than 15% in a year will ultimately collapse.
“No legitimate scheme will guarantee an annual return of more than 15%. Any scheme claiming to do otherwise has to be a scam.
“Like most other pyramid schemes, the (JJPTR) forex scheme will collapse when there is no entry of new investors.”
Afyan said that despite getting flak from investors after allegedly losing RM500mil due to its accounts being hacked, it was still “possible” for JJPTR to entice old and new investors to subscribe to the new plan, which promises higher returns and special lucky draws.
“Some investors may leave, because they no longer see hope but those in the “top tier” will continue finding new victims as they’ve already invested so much.
“Unfortunately, there will still be people who believe in them,” he related.
Commenting on a video of founder Johnson Lee announcing the new plan via JJPTR Malaysia’s Facebook page, Afyan said the laws in Malaysia were not harsh enough to serve as deterrent for so-called “scammers”.
He claimed that the only person to have been severely punished for operating an illegal investment scheme was Pak Man Telo, or Othman Hamzah, who was jailed and banished to Terengganu from Perak in the early 1990s.
Othman reportedly enticed 50,000 people to invest in his getrich-quick scheme, commonly known as the Pak Man Telo scheme, and managed to rake in RM90mil before being arrested, tried and sent to prison for two years. He died in Terengganu a few years later.
Ever since then, Afyan claimed, convicted scammers have been getting away easy.
“At most, scammers will be arrested and remanded. But you don’t hear about them serving time in prison. They’ve already made millions, billions, in profits.
“A penalty of a few thousand ringgit is nothing to them,” he said.
Afyan, who lost RM300 to a getrich-quick scheme while he was a university student in 2003, worked in Islamic insurance and financial planning after graduating.
He created a Facebook page in 2008 to share information on questionable investment opportunities, earning him the nickname “scam buster”.
He claims to have uncovered about 50 dubious companies so far.
Illuminated boards highlighting Xi’s signature One Belt- One Road foreign policy plan in Beijing. Leaders of 28 countries are set to attend the summit in the Chinese capital next month to discuss the infrastructure investment programme to stitch together the Eurasian continent. — AP'Win-win development will lie at the core of the forum. The Belt and Road has become the most important public good China has provided to the world. It was first proposed by China, but now it is for all countries to enjoy.' - Wang Yi. 'Belt and Road has the power and prestige of President Xi Jinping behind it. It is the centre of his vision for China, and of his ambition to transform China's place in the world during his time as its leader ... And already it is starting to change the geoeconomic and the geopolical landscape.' - Huge White
China’s ambitious economic plan is set to draw up a new global paradigm with countries seeking to engage the Middle Kingdom.
WHEN the ambitious Belt and Road initiative – with projects reportedly worth US$1 trillion – was first announced by President Xi Jinping in the autumn of 2013, many were sceptical of this Chinese move aimed at building up economic connectivity of 65 nations (China plus 64) along its ancient silk road and maritime routes.
For China, this New Silk Road would also serve to redirect the country’s domestic overcapacity and capital for regional infrastructure development to improve trade and ties with Asean, Central Asian and European countries.
Unprecedented in terms of China’s financial commitment, many Western critics have viewed this strategy as a grandiose foreign policy to expand Beijing’s influence to poor nations hungry for economic and infrastructure development.
The initiative was mooted at a time when the United States and the West excluded China from regional trading blocs. Hence, Beijing’s new development vision has been read as a strategy for asserting its leadership role in Asia and beyond.
But after nearly four years of promoting the concept and implementing projects, this initiative – dubbed as a modern-day Marshall Plan – is gaining traction.
It is seen by some Western academics as posing a threat to the US-centric world trade order and economic model.
Without a doubt, China is heading towards achieving its regional economic and diplomatic objectives. And the internationalisation of the renminbi is being boosted.
“We expect the One Belt-One Road (OBOR) to support long-term growth of development in the economies involved, particularly in some of the least developed parts of the world... We also expect it to help boost China’s global influence,” says a report dated April 27 by Oxford Economics.
While the idea of enhancing connectivity has drawn interest, the worry on China’s potential hegemonic ambitions has prevailed among regional rivals India and Japan, as well as the United States.
Despite this, nations that correctly read China’s economic strategy and Xi’s resolve were quick to announce their support for this China-led inclusiveness. And Malaysia had become one of the earliest participants and is now a gainer.
The Belt and Road initiative is largely assessed as having progressed well despite some setbacks.
Many countries are at ease to engage with China, particularly after Xi declared the “Three Nos”: no interference in the internal affairs of other nations; no intention to increase the so-called “sphere of influence”; and no motive to strive for hegemony.
Recipient nations are enjoying higher economic, trade and business activities, as well as a tourism boom helped by the influx of tourists from China – the world’s second largest economy and biggest consumer market.
The impact of the Chinese strategy is particularly conspicuous in the least developed nations in Africa and West Asia, as well as Asean nations such as Laos, Vietnam, Indonesia, Cambodia and Malaysia.
“Many belt-road countries have for many years been neglected by the West and Western investors, so even though there are concerns, some countries see China as offering once-in-a-lifetime chance to get out of poverty and under-development,” observes Dr Ngeow Chow Bing, deputy director of Institute of China Studies, Universiti Malaya.
China says it has invested more than US$50bil (RM220bil) on belt-road projects over the past three years, and signed project contracts worth US$926bil (RM4.16 trillion) covering mainly railway networks, highways and ports.
But China and its construction companies have also benefited from these endeavours. Its economy has been stimulated by exports from industries with overcapacity such as steel, cement and aluminium. Its GDP growth of 6.9% in the first quarter of 2017 was higher than expected.
Significantly, China’s state-owned construction conglomerates have successfully ventured out into belt-road nations. With these giants leading the build-transfer-operate schemes, smaller private enterprises have followed suit.
With China’s infrastructure projects and industrial investments extended to over 60 nations, the belt-road strategy is challenging the US-led world order and a new economic paradigm is definitely emerging, according to analysts.
Teoh: ‘OBOR will reshape the world’s economic dynamics
“OBOR will significantly reshape the world’s economic dynamics. It will sharply increase accessibility and trades, across over 65% of the world’s population and 25% of global trade and services,” says Teoh Kok Lin, founder and chief investment officer of Singular Asset Management, a Kuala Lumpur-based regional asset investment company.
“Emerging economies, in particular, will benefit most from the increased global trades and services as well as improved infrastructure. OBOR will expand trade globalisation at a time when the world is worried about the Trump administration push towards the Buy America policy,” adds Teoh.
Closer economic relations with Beijing has helped reduce regional tension and friction, as seen in the case of the South China Sea where the Philippines under its current president saw economic cooperation with China as more practical.
Despite concerns over China’s rapid reclamation of reefs in South China Sea, in which Manila and several Asean nations have contesting territorial claims with China, the Asean Summit is unlikely to kick up a storm.
According to Reuters, Philippine President Rodrigo Duterte said on Thursday “it is pointless” discussing Beijing’s contentious activities in the South China Sea at this summit, and “no one dared to pressure China anyway.”
Referring to the Belt and Road initiative as “a brilliant plan”, CLSA in its report remarks: “Xi Jinping’s ambitious strategic initiative – an adaptation of the historical Silk Road – marks the beginning of a new geopolitical era.”
May 14-15 summit and forum
The major achievements of the belt and road initiative are expected to be further highlighted at the coming two-day Belt and Road Forum for International Cooperation, which will be opened by President Xi on May 14 in Beijing.
This summit could be the most important diplomatic event this year to discuss what is expected to be the largest global economic programme.
“Amid challenges and the perceived fear of China’s influence of regional geopolitical landscape, China’s OBOR initiative has achieved commendable progress since 2013,” says Datuk Ter Leong Yap, president of the Associated Chinese Chamber of Commerce and Industry of Malaysia.
“China has made significant headway by kick-starting infrastructure and connectivity projects to facilitate trade and investment, promote financial cooperation as well as deepening cross border flow,” he adds.
Since 2013, China’s businessmen have built 56 economic and trade cooperation zones in belt-road countries, generating nearly US$1.1bil (RM4.7bil) in tax revenue and creating 180,000 jobs, according to Xinhua.
Large-scale infrastructure projects – along with funding – have led to a boom of economic activity in countries like Kazakhstan, Azerbaijan, Georgia, Belarus, and Poland.
And in Asean, rail and ports projects are either being constructed or planned. These include the China-Laos Railway, Jakarta–Bandung High Speed Rail, Malaysia’s East Coast Rail Link and a high-speed rail project in Thailand.
And Eurasia, the vast landmass from China to Europe, is being interconnected into a massive market via high-speed China-Europe, trans-Eurasian direct trains.
These modern freight rail systems, which have replaced the silk-laden camels of the Han Dynasty, could transport goods at lower costs and more efficiently from China to European cities (and vise versa), compared to shipping.
In sum, China’s overland belt-road projects have achieved the objective of building a trans-national network connecting Asia with Europe and Africa, and promoting economic development in participating countries.
And it looks like the current objective and scope will be widened to embrace nations outside the belt-road routes.
“China is upbeat about the initiative in boosting mutual development and is willing to channel more energy into it,” declared Chinese Foreign Minister Wang Yi on April 21, when he briefed the media on the coming summit and forum.
“Win-win development will lie at the core of the forum. The Belt and Road has become the most important public good China has provided to the world. It was first proposed by China, but now it is for all countries to enjoy,” Wang said.
A total of 28 heads of state and government – including Russian President Vladimir Putin, Turkish President Recep Tayyip Erdogan and Malaysian Prime Minister Datuk Seri Najib Tun Razak – have confirmed they will be attending the May 15 summit.
UN secretary-general Antonio Guterres, World Bank president Jim Yong Kim and International Monetary Fund managing director Christine Lagarde will also be present.
Over 80 leaders from international organisations, 100 ministerial-level officials, as well as 1,200 delegates from various countries will be there, too.
President Xi will deliver a keynote speech, as well as host a roundtable meeting to brainstorm on policy and strategic development and interconnected development in the world.
There will be another high-level meeting to discuss infrastructure, trade and economic cooperation, energy resources, financial cooperation, eco-environment, and people-to-people exchanges.
According to Wang, China expects to sign agreements with around 20 countries and 20 organisations at the event to turn the grand blueprint into a workable road map, and to push for the delivery of joint projects under earlier MOUs.
He clarified that China has no intention of drawing geographical boundaries to areas covered by the initiative.
“As long as the spirit of the Belt and Road is recognised... everyone can enjoy its opportunities,” he said.
Japan sprang a surprise last week when Toshihiro Nikai, the secretary-general of the ruling Liberal Democratic Party, said he would attend the New Silk Road summit.
“Given the international situation starting with North Korea, mutual understanding between Japan and China is vital,” he was quoted by Jiji News Agency as saying.
What lies ahead in 2017?
Over the past two years, China had generated huge momentum for its New Silk Road initiative by signing many MOUs on infrastructure projects with belt-road countries.
Chinese firms, mainly state-owned or controlled, had reportedly signed investment deals worth US$171bil (RM742bil). Among these was the US$46bil (RM200bil) China-Pakistan economic corridor.
The government of Xi is expected to start making good on these projects this year and help facilitate their financing and implementation.
Nearer home, the financing and construction of Malaysia’s RM55bil East Coast Rail Link is expected to start this year. The rail project is set to spur economic activities in the east coast states of the peninsula.
Wake Shepard, a China watcher and writer, expects increased economic participation from Europe.
“Beyond the further development of key trans-Eurasian logistics hubs on the Poland/Belarus border and a port in Greece, look for more high-end European products going overland by rail to China,” he wrote on Forbes.com.
Many Europe-based logistics giants have been promoting Europe-China rail transport in 2016, and in 2017 they should see results from these efforts, he added.
“European freight forwarders, manufacturers and policy makers are now waking up to the fact that these newly enhanced trade corridors are providing ample opportunity to get more of their high-value products to the booming markets of China and the rest of Asia,” says Shepard.
For China, the forum may be a good platform for it to listen to views on why some ventures did not progress well, such as its port-city investment in Sri Lanka.
Complaints that Chinese firms have posed unhealthy competition and threaten to wipe out small businesses of belt-road countries could also be on the table for deliberation.
The Middle Kingdom may also have to assess whether it is worthwhile to take risks in countries clouded by security issues, political instability and racial conflicts.
Belt road implications
The importance China has attached to the Belt and Road summit and forum goes to show how vital this international economic inclusive programme is to China and Xi.
It is imperative for Xi, who took over the presidency in late 2012, to show his ability to transform China into a global, influential leader.
After three decades of rapid growth, China needs to seek new investment and trade opportunities beyond its borders and the belt-road initiative mooted by Xi is addressing this predicament.
The infrastructure projects China build in belt-road countries will help absorb a significant portion of the country’s overcapacity, and counter its economic slowdown.
As western China has often been troubled by tension between the financially-weak Uighur Muslims and China’s Han majority in Xinjiang Province, economic development in this old silk road region may pacify the Uighurs and reduce ethnic conflicts.
But Hugh White, professor of strategic studies at the Australian National University in Canberra, sees China as having much bigger ambitions.
“China wants to consolidate its position at the centre of the global supply and manufacturing networks which will be the key to the global economy over the coming decades,” he wrote in a recent comment.
The initiative will also help China to realise its ambition to become a middle-income country and reinforce its parallel ambition to take the lead over the coming decades in developing key technologies and setting global standards – including for high-speed rail and data networks, he added.
He opined the Belt and Road Initiative could not be dismissed as a mere dream.
“It has the power and prestige of President Xi Jinping behind it. It is at the centre of his vision for China, and of his ambition to transform China’s place in the world during his time as its leader. And already it is starting to change the geo-economic and geopolitical landscape.”
“If America and its allies are determined to resist China’s challenge to the old US-led liberal global order, they have to counter Beijing’s powerful vision. And to do that they need an equally powerful and ambitious global economic vision.”
CALL them pyramid, Ponzi or get-rich-quick schemes and people might shy away. But call them money games, and suddenly they are just games, is that right?
What can be so diabolical about that?
Penang lang (people) are very much into money games. That's what Ben, a Penangite who now lives in Australia, found out when he came back for a holiday three weeks ago.
Ben’s friends and relatives tried to rope him into money games. They themselves had "invested" in a few "games".
He was astounded by their obsession. It does seem as if money games are on the minds of many Penangites now.
I hear about them at the coffee shops and watering holes. And yes, many of my buddies are into them too.
You will likely be the odd one out if you are not into such schemes these days.
JJPTR is a now household acronym after almost two years in the market. It stands for JJ Poor-to-Rich and the very name resonated well with middle-class families.
Its 20% monthly payouts were always on time, until the recent hacking job.
Then came Richway Global Venture, Change Your Life (CYL) and BTC I-system, but they too are said to be in troubled waters these days.
Attempts by many journalists to contact them have been unsuccessful.
The money game list is quite long, and Penang has the dubious honour of being the home base for many.
Another friend, Robert, had a jolt when a doctor he knew told patients to put their money into such a scheme. A doctor!
From the cleaners at his office to the hawkers and professionals he met, everyone, it seems, was convinced. None questioned how the high returns could come to fruition in such a short time.
But Robert is a harsh critic of these games and would not go anywhere near them. He didn't believe in their economic "principles".
He even got into a big fight with his father, who put money into JJPTR.
And now, Robert has been proven right. Fortunately, his father was one of the lucky ones because he managed to recoup his principal sum, on top of the thousands more he had received over the past few months.
Billy, a man well-versed in such operations, said operators would always use forex trading or investment in foreign projects as cover stories to woo new members.
They paint vivid pictures of those joining becoming part of big-time developments in Third World countries like Cambodia and Vietnam.
Once you get closer to them, they will tell you outright it is a money game and that you are among the pioneers, sure to make a profit before the scheme bursts.
Things tend to be smooth sailing for the first few months. You see money coming back in and pride yourself in taking the risk.
But soon the saturation point is reached as new members to the pyramid slow to a trickle.
Then you can expect the scheme to collapse.
Billy pointed out that the higher the return on investment, the faster the scheme bursts.
That's because the operator cannot get enough new members to keep the scheme sustainable. At the same time, he has to deal with huge monthly payouts.
Some in Penang may remember the chance to invest in a cafe chain known as Island Red Cafe around 10 years ago. Then there was that company that sold gold bars and coins. There was also a Swiss cash scheme which took the country by storm.
As long as there is greed, such schemes will always re-emerge. As they say, a fool and his money are soon parted.
Honestly, the quickest way to double your money is to fold it in half and put it back in your pocket.
'Please bless the money game'
Still very much alive: Investors of Mama Captain are allowed to continue trading their virtual money at any outlet displaying the ‘Barrel2U’ banner.
GEORGE TOWN: Some investors are seeking “divine intervention” for money games to last.
A 10-second video clip of a man praying aloud before a temple shrine is fast circulating on social media and phone chat groups.
His prayer goes: “Datuk Gong (deity), I pray to you. Please bless money games. Please help them stay afloat for a few more months.”
His prayer is in Penang Hokkien and he mentions “money game” in English.
It is believed to be a satirical meme on money games, and there are several more spreading.
Memes on the Penang-based JJPTR, or Jie Jiu Pu Tong Ren in Mandarin (salvation for the common people), have also gone viral online.
One of them, titled “Life without JJ” in Chinese, is accompanied by a picture of a plate of plain rice topped with a few strands of fried vegetable.
Another similarly titled meme shows grubby, tattered underwear and is captioned: “Don’t ask me how my life is lately. The underwear explains everything!”
Meanwhile, a man known as Bingyen has cynically adapted the lyrics of a popular Mandarin song Zui Jin Bi Jiao Fan (Troubled Recently) to relate to JJPTR.
Interestingly, the Chinese name of JJPTR founder Johnson Lee rhymes with one of the song’s singers, veteran Taiwanese musician Jonathan Lee. Both their names are similar in pinyin – Li Zong Sheng.
Bingyen, in his lyrics, also advised the people to stay away from money games.
According to speculation online and media reports, JJPTR investors, said to number in the tens of thousands locally and internationally, including Canada, the United States and China, stand to lose RM500mil.
Lee, who has blamed the company’s losses on hackers, however, put the figure at US$400mil (RM1.75bil) in a widely-circulated video recording later.
The 28-year-old founder, in a video posted on the JJPTR Malaysia Facebook page last week, made a promise to repay its members by May 20. Also on the same day, the company is supposed to hold a dinner gathering at Berjaya Times Square in Kuala Lumpur.
The forex trading company, along with its associate entities JJ Poor to Rich and JJ Global Network under www.jjptr.com, is among the 288 entities and individuals listed on Bank Negara’s Financial Consumer Alert as of Feb 24.
Scheme or scam?: Multi-level marketing companies often conduct presentations to potential members promising financial freedom and a better lifestyle
There is no fast track to getting profits or income. Nothing can replace hard and honest work.
IT’s now called the money game but it has been around for awhile, only that it was referred to as multi-level marketing (MLM) or pyramid scams.
There seems to be a resurgence of such scams recently probably due to the economic slow down. While it may be safer to put one’s money in the bank, the reality is that the interest is not that great. It’s the same with unit trust investments.
So, there’s little surprise that many people are attracted to MLM scams, with its huge returns, although they know there’s always a risk behind these schemes (or scams).
These people are seemingly prepared to take the plunge.
New recruits are told to just deposit RM5,000 and stand to gain RM1,000 every month. That’s so attractive – and that is also how one gets sucked into the game.
Imagine this – if there are over 20,000 members and each of them places RM5,000 in the scheme, that works out to a whopping RM100mil collected. The numbers get higher with more members recruited.
And we wonder why there are not many reports made by the victims to the police or Bank Negara Malaysia against these con artists.
I have a relative who pours scorn on his father who works very hard to put food on the table but this arrogant young punk thinks he can make a huge pile of money without selling anything or working for anyone.
Another friend, who declared himself to be mentally-challenged to escape the bill collectors, used to laugh at those studying hard for their exams.
He said although he was illiterate, he would soon make millions and hire graduates to work for him. Of course, he didn’t see his millions.
These people were driven by pure greed, really. Social media is filled with stories of young people making tonnes of money, often living in Dubai, or driving around in gold-plated luxury cars.
Sometimes, famous personalities are dragged in to be part of these advertisements – without their consent, naturally.
Of course, Google and Facebook are not responsible for these fake news and fake advertisements.
The scams include binary option trading which is essentially an unregulated, and sometimes, fraudulent, mainly offshore activity.
Binary option trading involves predicting if the price of an underlying instrument – shares or currencies, for instance – will be above or below a specified price at a specified point in time, ranging from a few minutes to a few months in the future.
Those involve in it receive a fixed amount of money if the prediction is correct or lose the investment otherwise. It is essentially a “yes” or “no” betting, hence the name binary, according to one report.
But that’s another story.
The one that is hitting Malaysians – particularly those in Penang where many scams seem to surface – is the straightforward MLM.
To be fair, there are legitimate MLM businesses. These actually sell products. Members have to sell real products to earn their income, and not sell membership.
You know you are getting into a pyramid scam when they tell you to just put your feet up and get more people to join in.
The MLM is simply about finding new members – or rather, new victims. It is as good as paying you some silly fake gold coins. In some cases, even so-called virtual coins.
You are told that the more members you recruit, you will double or triple your income. The pyramid will come crashing down once no new members are recruited anymore.
But some dubious MLM have gotten smarter. They sell products but they are mostly “worthless” goods like accessories, stones, cosmetics, health and beauty products, among other things. Some sell low-quality health gadgets with unproven scientific claims.
Come on, don’t tell me your home is filled with air purifiers and magic water dispensers? Or you have some lucky charm? Or stones?
According to Mark Reijman, who advocates financial literacy, these MLM use cheap products to hide the fact that members are actually investing in a pyramid scheme,
He said the products are there simply to hide the truth. Members are investing in a pyramid scheme!
“If the MLM cannot explain the source of profits or give details about the technology of the products, or do not permit you to show your contract to outsiders, they are hiding the fact that their product is useless and the profits come from new recruits and not from product sales.
“Be wary when you are asked to buy a large inventory of the product. Don’t fall for ‘patented’ or alleged ‘US technology’ or secret recipes. It’s all smoke and mirrors.”
He advised the public to be on the alert if the product is not sold through regular channels that have served societies for millennia, such as stores and (online) market places.
“If it is such a great product, why can it not be sold through other channels? Perhaps because those channels don’t allow you to recruit new members and they want to protect their reputation against fake or low quality products?” There is a lesson here – nothing can replace the old fashioned values like hard work and having honest earnings. Greed should be kept at bay.
In short – pyramid schemes are unstable because at every new level it will require more recruits in an exponential manner, as Reijman warns.
Soon, the scam will run out of people who fall for the scam, at which time the payments stop and that’s when press conferences are called by the victims.
Millions lost because of a hacking job? – now that’s something new.
By wong Chun Wai On the beat
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 the group's managing director/chief executive officer and formerly the group chief editor. 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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Trap - as long as there is greed, Ponzi schemes will always re-emerge. 
