Strike on the Philippine terrorists a success, extradite Sulu Sultan to Malaysia!

A Nuri helicopter departing for Kampung Tanduo to take part in an air offensive against the terrorists holed up there. Bernama pic



NO CHOICE: Police, military unleash massive offensive against terrorists

LAHAT DATU: SECURITY forces successfully launched a major offensive at daybreak yesterday on Sulu terrorists following a 21-day stand-off that had left eight policemen dead and triggered panic in Sabah's east coast.

In a never-before-seen offensive, security forces yesterday unleashed a massive strike involving the police and the military on Kampung Tanduo near here, where the terrorists were holed up.

While the number of deaths among the terrorists following the strike, codenamed Ops Daulat, was not immediately known, what was obvious was the tremendous support shown by Malaysians for this course of action.

Malaysians had run out of compassion for this band of terrorists as numerous efforts undertaken by the governments of Malaysia and the Philippines to end the stand-off peacefully, were ignored.

Some 2,000 security personnel from the armed forces and police were deployed yesterday in a 2km area in Kampung Tanduo after airstrikes. There were no reports of casualties from the Malaysian side.

Morale among the security forces was high, despite the fact that they lost eight of their comrades in clashes with terrorists several days ago.

Just after the strike, Prime Minister Datuk Seri Najib Razak, delivering an emotionally-packed speech at a gathering of Islamic scholars in Bukit Jalil, was firm when he spoke of their resoluteness in protecting Malaysia's sovereignty.

Najib, with a pained look as he narrated the grief he felt when meeting the widows of the policemen, also expressed his frustration that the terrorists had not heeded calls to withdraw and avoid bloodshed.

It was a tough call, but one that "as the leader of the government", Najib had to make.

The 16,000-odd crowd applauded in approval when Najib said the time for diplomacy had ended.

Nobody could have mistaken that as a show of arrogance. It was simply an endorsement that as the leader of the country, he was doing what needed to be done.

While some opposition leaders had politicised the issue, there were those who also threw their support behind yesterday's action.

Even Kelantan Menteri Besar Nik Abdul Aziz Nik Mat, an ardent critic of the government, supported the move, urging Sabah folk to remain loyal to the country and not help the terrorists.

Yesterday, three weeks after the Sulu gunmen landed on our shores, Malaysia and the Philippines agreed that they be labelled "terrorists".

This was decided at a meeting between Foreign Affairs Minister Datuk Seri Anifah Aman and his Philippine counterpart, Senator Albert F. del Rosario.

Anifah also asked that action be taken against the self-proclaimed Sultan of Sulu, Jamalul Kiram III, for inciting hatred and violence against Malaysians.

Yesterday's strike, however, is not the end of the issue.

Residents are afraid of reprisals by the terrorists but in a joint media briefing, the defence and home ministers assured Sabahans that they would always be protected.

Malaysia can extradite so-called Sulu Sultan 

 
Wanted: Jamalul speaking to the press in Manila as he affirms his sultanate’s claim to Sabah. — AFP

 

PETALING JAYA: Malaysia can seek the extradition of self-proclaimed Sulu Sultan Jamalul Kiram III from the Philippines to face the law over the intrusion into Sabah, legal experts said.

They said Malaysia’s arrest and extradition of Moro National Libera­tion Front leader Nur Misuari to the Philippines in 2001 following a request by that country had set a precedent for cooperation in dealing with such cases.

Muslim Lawyers Association of Malaysia Datuk Zainul Rijal Abu Bakar said the culprits, including those based in Philippines such as Jamalul Kiram, needed to be brought to Malaysia to face criminal charges of waging war against the Yang di-Pertuan Agong, an offence under the Penal Code that is punishable by death upon conviction.

“Our sovereignty has been challenged and while Malaysia wanted to avoid bloodshed they started firing, triggering action which resulted in our security personnel dead, which means there is no more room to forgive them,” said Zainul.

He added that since Jamalul Kiram did not directly take up weapons in Malaysian territory, he could be investigated for abetting to wage war, which also carries the death penalty upon conviction.

International Islamic University Malaysia (IIUM) Associate Professor Shamrahayu A. Aziz said the charge could be used against the culprits even if they were not Malaysian citizens because what mattered was where the crime was committed.

“It is also possible for Malaysia to request the extradition of a person who is not in our country if we can prove that the instructions came from him or that he instigated or incited the actions,” she said.

Emeritus Professor of Law at Univ­er­s­iti Teknologi Mara Prof Datuk Shad Saleem Faruqi said many Sections in Chapter 6 of the Penal Code could be used against the culprits.

He said Malaysians in Lahad Datu, who had given protection to the intruders, could also be charged under Section 125A of the Act, which makes it an offence to harbour any person in Malaysia or a foreign country who is at war or considered hostile against the King.

In addition, Shad Faruqi said the culprits could also be charged under the newly included Section 6A of the Penal Code, which deals with offences relating to terrorism.

On the possibility of the Philippines requesting to Malaysia to send its naval ships to offer assistance, Prof Dr Aruna Gopinath from Universiti Pertahanan Nasional Malaysia said it must only be done after obtaining an agreement from the Malaysian Government.

“If there is an offer from them to want to help or monitor then they must wait for an agreement from us, they cannot just sail here unilaterally as that would be trespassing,” she said.

In an unrelated development Raja Muda Azzimudie Kiram, the brother of the self-proclaimed Sulu Sultan Jamalul Kiram III, is believed to be alive and well even after the attack.

“He (the Raja Muda) is still alive,” the sultanate’s spokesman Abraham Idjirani told The Star in a phone interview from Manila.

“I spoke to him yesterday (Tuesday) morning and he said he and the troops were still in Sabah and still in good condition”.

However, Idjirani admitted he had not heard from Azzimudie since then but claimed he was “definitely okay”.

“The Malaysian security forces attacked an area that the Raja Muda and his troops had long since vacated. There are only four injured men, but they are all safe.” he said, referring to the Malaysian security force’s assault on the intruders in Lahad Datu early yesterday morning.

Sources: Asia News Network

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The former Sulu Sultanate, a foreign problem in history that became Sabah's
SABAH STANDOFF, invaders from the Philippines shoot dead! 
Filipinos’ Sulu militant group in Sabah must leave Malaysia today

The West envious of global economy led by China

As central banks in the euro zone and Britain edge closer this week to deciding that their flagging economies need yet more monetary stimulus, they can be forgiven for casting an envious eye towards China.

The same goes for the United States. Because of deadlock in budget talks, mandatory federal spending cuts are now being phased. They will brake a recovery that, as Friday's jobs report is likely to show, is already frustratingly weak.

China, the biggest contributor to global growth in recent years, has plenty of headaches of its own, of course.

Over reliance on investment in heavy industry, a financial system rigged in favour of the state, and a failure to integrate some 140 million rural migrant workers into urban life top the list of structural problems.

Louis Kuijs, an economist with Royal Bank of Scotland in Hong Kong, adds rising inflation, a renewed climb in house prices and a rapid expansion in 'shadow banking' to the government's to-do list for 2013.

But Kuijs and other economists expect outgoing Premier Wen Jiabao to reaffirm a growth target of 7.5 percent for this year when he delivers his last 'state of the nation' report to the annual meeting of parliament that opens on Tuesday.

China entered 2013 with solid growth momentum thanks to measured policy stimulus in the second half of last year. That impetus is now fading somewhat after a strong fourth quarter, as figures for January and February will probably suggest.

So, just as the West is looking to China to boost global demand, China is counting on a pick-up in the West as 2013 unfolds to help exports and revive corporate investment, Kuijs said.

"Looking at trade and industrial production indicators, we are all expecting a strengthening global picture, coming especially from the United States and Europe, but it's still a forecast: it's not showing up yet in the hard data," he said.

Euro Zone Disappoints

Indeed, the European Commission is projecting that the euro zone economy will shrink in 2013 for the second straight year. And February's survey of purchasing managers was downright weak.

"This increases the chances of a rate cut, but it's still not our baseline assumption," said Petr Zemcik, director of European economics at Moody's Analytics in London. "The ECB has done all it can at this stage."

His comments were in line with a Reuters poll of economists, which saw a 90 percent chance that the ECB, the European Central Bank, would keep its main short-term interest rate unchanged at 0.75 percent when it meets on Thursday.

However, a growing minority expects the ECB will cut rates at some point. Doing so now, right after Italy's election produced a big protest vote against austerity, would invite the suspicion that the bank was acting out of political panic.

But President Mario Draghi is sure to be quizzed about further easing and possible activation of the ECB's bond-buying program for euro zone strugglers, especially if the bank lowers its 2013 growth and inflation forecasts again.

Jeffrey Anderson with the Institute for International Economics in Washington, a financial-industry lobby group, said a rate cut would send a useful signal of the importance of growth to voters weary of austerity.

The Italian economy has shrunk for six quarters in a row. Euro zone unemployment hit a record 11.9 percent in January.

At the same time, euro zone finance ministers, who meet on Monday, should excuse Italy from further fiscal tightening as its budget is close to structural balance, Anderson argued.

"Ways must still be found to prod Italy to move on overdue labor market liberalization. But action to boost near-term growth would help Europe to sustain the popular backing necessary to advance the reforms needed for the longer term," he said in a note.

Bank of England Closer to Easing

In Britain, the government seems determined to stick to budget austerity despite a sharp drop in manufacturing in February and a stinging defeat for Prime Minister David Cameron's Conservative party in a parliamentary by-election.

This keeps the onus on the Bank of England, three of whose nine policymakers have already voted to expand the central bank's stock of asset purchases, now set at 375 billion pounds.

That could turn into a majority as soon as Thursday, when the BOE meets to set policy, if a survey two days earlier of the all-important services sector is weak, said Simon Hayes, an economist at Barclays Capital in London.

Further easing by the Federal Reserve is not on the cards. But job figures on Friday are likely to underscore that the U.S. central bank is in no hurry to withdraw its stimulus - the message Chairman Ben Bernanke relayed to Congress last week.

According to a Reuters poll, firms probably added 160,000 non-farm jobs last month, in line with January's 157,000 gain, while the unemployment rate held steady at 7.9 percent.

That is well above the Fed's goal of 6.5 percent. Moreover, federal spending cuts, if not reversed, will stiffen fiscal headwinds and could lop 0.5 percent off growth over the rest of this year, many economists estimate.

Nevertheless, Jim O'Sullivan, chief U.S. economist with High Frequency Economics in Valhalla, New York, is confident that it is just a matter of time before the Fed's ultra-easy policy starts to bear more fruit.

Job growth was already brisk enough to reduce the unemployment rate given a secular decline in the participation rate due to an ageing population, he argued.

"Based on what we're seeing in the labor market, in the battle between monetary stimulus and fiscal drag, the Fed is winning," O'Sullivan said. - Reuters

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Hit by US automatic spending cuts, tax hikes, budget cuts

Hit by US automatic spending cuts, tax hikes, budget cuts

The government spending cuts in the United States as the President and Congress fail to reach a deal will also affect poor developing countries as the aid budget, especially for food and medicine, is reduced.


ON MARCH 1, the United States government had to introduce spending cuts of US$85bil (RM263bil) for this year, as President Barack Obama and the Congress failed to reach an agreement on how to reduce the budget deficit.

The so-called “sequestration” marked a new failure in relations between the President and the Republicans in Congress.

The term “dysfunctional” is now commonly used to describe the US government system, as the deadlock between the President and Congress, and the animosity between the Democrat and Republican parties have blocked laws, policies and agreements.

The most visible of this dysfunctionality is in the government’s inability to come to grips with economic policy, especially by how much and how to reduce the budget deficit.

Republican budget deficit hawks are obsessed with slashing government spending to reduce the budget deficit. Prominent Keynesian-influenced economists like Paul Krugman and Joseph Stiglitz argue that cutting government spending in the midst of a weak economy is unnecessary and will tip the country into a new recession.

Obama himself is in favour of deficit cutting but wants it done in a balanced way – by increasing government revenue through increased taxes on the rich (or closing loopholes that allow them to avoid taxes) and by lesser spending cuts that do not affect the poor.

The “sequestration” issue began in 2011 when a deadlock developed between Congress and Obama over the budget. Obama then proposed that a list of specific automatic spending cuts would go into effect on March 1 if no new deal was reached.

The proposed cuts were deliberately chosen to be so bad that Congress would not allow them to take effect. Or so Obama thought. He would use this as leverage to get the balance of tax increases and smaller spending cuts that he had in mind.

But, in the end, the Republicans called his bluff, and now the spending cuts have come into effect – US$1.2 trillion (RM3.71 trillion) over 10 years, starting with US$85bil (RM263bil) this fiscal year.

The effects will be felt not only by Americans but also the developing countries. They include the negative fallout on global growth and expected cuts in aid going to poor countries.

This comes at a bad time as the rich economies are already on a downward path.

Last week, the Organisation for Economic Cooperation and Development, the group of 34 rich countries, said that the gross domestic product of its members fell by an annual rate of 0.6% in the last quarter of 2012.

The European Commission, meanwhile, predicted that the Eurozone economies would contract by 0.3% this year, which could prove to be optimistic given the recent political uncertainties in Italy.

The spending cuts in the US would add to the contractionary trend in the rich countries.

The continuously weakening of the Western economies will have adverse effects on exports, tourism, workers’ remittances and incomes in developing countries.

There is another and more direct dimension to the “sequestration” on the developing world. The government’s spending cuts will affect the budget for aid given to poor countries and to development programmes such as provision of medicines and food, according to a report by the Inter Press Service (IPS).

The new secretary of state, John Kerry, revealed that the State Department and its aid agency Usaid, would have to cut US$2.6bil (RM8bil) from their 2013 budget.

The cuts would include US$200mil (RM619mil) from humanitarian assistance and US$400mil (RM1.23bil) from global health programmes.

For example, the US would reduce its contribution to the Global Fund to Fight AIDS, Tuberculosis and Malaria by US$300mil (RM928mil) this year, meaning there will be less medicine donated to poor countries.

Kerry has written to Congress stating that this reduction would reduce the United States’ ability to provide food assistance to two million people and Usaid would have to cease, reduce, or not initiate assistance to millions of disaster affected people, and would “gravely impede” efforts at reducing AIDS-related and child deaths.

The IPS report also quoted Jeremy Kadden of InterAction (an alliance of NGOs aiding developing countries) as saying: “These cuts will cost lives. We’ve made very significant progress over the past 10 years, with real people improving their lives, and this would set that process back enormously, devastating actual people on the ground.”

He estimated that the budget cuts would lead to some three million children losing access to the basic education they currently receive; two million people would suffer reductions in or stop receiving food aid, while 600,000 children would lose nutrition assistance.

Unlike in the United Kingdom, where the Cameron government decided not to cut its aid budget despite huge slashing of the overall government budget, there is no exemption for overseas spending in the US sequestration exercise.

The poor in America will also be affected. About 600,000 low-income women and children will stop receiving food aid.

Also affected in the US$26bil (RM80mil) cut in domestic programmes are health, education, drug enforcement, national parks and Hurricane Sandy relief.

Low-income families will also be affected by a cut in public housing subsidies, which could hurt about 125,000 poor families, according to The Guardian.

The National Institutes of Health, which will suffer a 5% budget cut, is cancelling hundreds of research grants.

Another US$16bil (RM49.5bil) in mandatory spending will be cut, including in medicare, agriculture programmes and unemployment benefits.

The main cuts will however come from the military budget, down by US$43bil (RM133bil) in 2013, on top of the US$500bil (RM1.55 trillion) budget cut over 10 years agreed to in 2011.

Global Trends By MARTIN KHOR

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The former Sulu Sultanate, a foreign problem in history that became Sabah's

AP In this March 1, 2013 photo, Sulu Sultan Jamalul Kiram III, centre, whose brother Rajamuda Kiram, along with more than 200 of their "Royal Army" followers has occupied a Malaysian village since February 9, joins a protest outside the Blue Mosque at the suburban Taguig city, east of Manila.

IT is too easy to dismiss the Lahad Datu standoff as typical of Sabah’s labyrinthine intrigue.

That would trivialise the rich history and cultural diversity of the state, besides mistaking a largely Philippine problem as being Sabah’s.

True, anywhere else in Malaysia with a significant Tausug population deriving from the former Sulu Sultanate’s diaspora, like the Klang Valley, would be unlikely to experience the drama of the past couple of weeks.

But none of the events in Kampung Tanduo, near Lahad Datu in eastern Sabah, was predictable or inevitable. The former Sultanate occupied only a small portion of Philippine territory and an even smaller portion of Sabah’s.

And yet, the peculiar combination of north-eastern Borneo’s demography, geography, history and political heritage provides a probable backdrop to just such a standoff. How did it all begin this time?

On Feb 9, nearly 100 Philippine nationals, several of them armed, arrived by boat to join a smaller group that had arrived earlier. They took over the village, claiming the area belonged to the Sultanate that they said they represented.

They also demanded recognition as the Royal Sulu Sultanate Army, as well as a meeting with an unnamed Malaysian leader. Malaysian authorities rejected both demands.

They further said they had come in support of Sabah’s Tausug population, alleging reports that following a Royal Commission of Inquiry into Sabah’s illegal immigrant communities, Tausugs would be deported.

Many locals would be surprised by the claim. Sabahan-Malaysian Tausugs, who prefer to be called Suluks, have long settled comfortably among Sabah’s three dozen or so ethnic groups.

Filipino Tausugs who arrived later as migrant workers, clinging more closely to their “Tausug” roots, may face a different reality. But ethnic persecution hardly if ever surfaces in Sabah because of, not despite, its rich cultural diversity.

The annual lease payment of RM5,300 agreed in 1903, increased from RM5,000 agreed in 1878, was also said to be insufficient. Others said the territory should be returned to the late Sultan’s descendants anyway.

Although British and Sulu versions of the 1878 agreement differed slightly, the Sulu version was clear enough: “… hereby lease of our own free will and satisfaction … all the territories and lands … forever and until the end of time, all rights and powers which we possess over all territories and lands tributary to us …”

Both the Philippines and Malaysia would rather do without such disturbances that serve only as irritants to bilateral relations. As modern nation states, both countries have evolved well past an extinct sultanate.

But there are also differences.

For Malaysia, the sovereignty and territorial claims of the former Sultan’s descendants are simply unacceptable. No such claims are negotiable.

The claimants argue that the sultanate’s territory had been leased only to Britain, with no agreement on incorporation into Malaysia. But their case is inconsistent.

Sabah, the former North Borneo, became a British protectorate from the late 19th century until it became a crown colony. It gained a brief period of independence before becoming part of the Malaysian Federation in 1963.

By then, the Cobbold Commission had determined that a majority of people in Sabah and Sarawak favoured the formation of Malaysia. For a century the former Sultan’s descendants did not retake territory, but instead agreed to continue accepting the lease payment under the previous arrangements.

The Philippine government, which subsumed the sultanate’s authority in the four provinces of Mindanao, also took over the role of pressing the claim to Sabah. Despite being a republic that had abandoned all royal authority, Manila continued with the claim before, during and after Malaysia’s formation.

Although the Philippine claim has since become dormant if not extinct, Manila found it difficult to renounce it. It has become an object of nationalists eager to strike populist postures in domestic Philippine politics.

The issue has a different spin among the Moro or Philippine Muslim community in Mindanao, of which Tausugs are a part. Despite Malaysia’s key role in peace talks between the two main Moro separatist groups and the Philippine government, both groups are not necessarily in Malaysia’s corner.

The MILF (Moro Islamist Liberation Front) disagreed with the takeover of Kampung Tanduo, saying negotiations should have been the way. This wrongly presumed that the issue was negotiable for Malaysia.

The MNLF (Moro National Liberation Front) is an even more enthusiastic supporter of the armed intruders. But it should be more mindful of the implications involved.

Since the former sultanate covered the Philippine provinces of Basilan, Palawan, Sulu and Tawi-Tawi in the ARMM (Autonomous Region of Muslim Mindanao), and only an eastern part of Sabah, followers of the former Sultan should first settle differences of territorial authority with the MNLF and the MILF before venturing into Sabah. They should also settle differences with Manila over such issues as hegemony, usurpation and compensation.

Both the Philippines and Malaysia, as sovereign states that had subsumed and developed beyond the Sulu Sultanate, have successfully concluded various agreements bilaterally and multilaterally. Those agreements confirm mutual acceptance of their respective statehood in their present configuration.

Besides, the former Sultan and his descendants had consented to the terms of the agreement in return for the lease payment. So long as payment is still made, they are obliged to continue abiding by the agreement.

That would make any unilateral attempt to retake territory by force of arms illegal and unjustified. Whether Malaysia will seek to prosecute after a resolution of the standoff is another matter.

Behind The Headlines by BUNN NAGARA

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SABAH STANDOFF, invaders from the Philippines shoot dead!

Filipinos’ Sulu militant group in Sabah must leave Malaysia today

VIDEO: 15 KILLED IN MALAYSIAN STANDOFFWITH FILIPINO GANG CCTV News - CNTV English

SABAH STANDOFF, invaders from the Philippines shoot dead!

At least 14 people have reportedly been killed, after Malaysian police ended a standoff with nearly 200 members of a Filipino Muslim group.

Malaysia’s Foreign Affairs Ministry says police launched an assault on a coastal village in the eastern Malaysian state of Sabah early on Friday morning.

The village of Lahad Datu had been occupied by a group led by Agbimuddin Kiram, a brother of the head of a Filipino Muslim royal clan. The group from the southern Philippines landed in the coastal village on February 9th, claiming the territory as their own.

They cited documents from the late 1800s to back up their claim. The owner of the house where Kiram stayed was killed, and the Filipino group was reportedly chased towards the sea.



Najib: All-out action will now be taken against the intruders

Datuk Seri Najib Tun Razak said he was saddened by the deaths in the shootout at Tanduo village in Lahad Datu, because there had been bloodshed despite the Government's attempts to prevent it.

Expressing his sadness over the deaths of two police commandos who were killed and the three who were injured, the Prime Minister said the group of Sulu gunmen had opened fire at the security forces.

He said that with the deadline for them to leave now over, all-out action would be taken against the intruders, who had caused the deaths of the policemen.

“I have given the full mandate to Inspector-General of Police Tan Sri Ismail Omar and Armed Forces Chief Tan Sri Zulkefli Mohd Zin to take whatever action is deemed necessary,” he told a press conference.

“They have been given full powers. It is up to them and the ground commanders can take action.

“There will be no compromise; either they surrender or face the consequences.”

Najib said security had been strengthened and the intruders totally surrounded, adding that vessels of the Royal Malaysian Navy were patrolling the sea to prevent them from escaping.

“What is important now is that whatever means must be used to cripple the group,” he added.

Najib said he had received reports that 12 people from the armed group were also killed in the exchange of fire.

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Filipinos’ Sulu militant group in Sabah must leave Malaysia today 

Raising productivity growth

I REFER to the report “Malaysians lag in productivity” (see the related posts below). The recent findings by the Malaysian Productivity Corporation (MPC) shows that our worker productivity levels, productivity growth and productivity value are lower than several leading industrialised economies and even some developing countries in our region.

That’s serious and calls for a more specific analysis of the situation to identify the real causes and institute urgent remedial measures involving all factors that influence productivity. MPC is of the view that even with our 2011 productivity growth rate of 4.55%, we are still on track to become a high-income nation by 2020.

It must, however, be understood that when any single factor of productivity or total factor productivity is low, economic growth will not be sustainable over the long-term and will instead decline and with it bring down both employment and incomes.

Some reasons have been cited for our low worker productivity levels, such as workers who prolong working time to perform a job thus increasing costs, poor working conditions, low-level of worker motivation and lack of incentives, among others.

As the Malaysian Trades Union Congress (MTUC) and the SME Corp have pointed out, a major factor that keeps worker productivity levels low is the massive hiring and continuing dependence on low-skilled, especially foreign, workers, who make up a fifth to a third, or even more, of the workforce in various industries.

Also, the use of low, or even medium, level technology and the preponderance of low value-added industries dominating the economy, contribute to low worker productivity levels.

Clearly, in order to boost overall productivity levels, there is an urgent need to pursue quality growth by investing in and providing incentives for:

1. > Upgrading skills;
2. > Increasing local worker employment levels;
3. > Encouraging high value-added industries in all sectors of the economy; and,
4. > Tightening foreign worker policies.

Other measures should include increased partnerships with leading global companies, developing the talents and skills needed to support such businesses, promoting high-end local enterprises and investing in a strong 21st century education system.

While rewarding employees through increases in wages and benefits might please them, it should never be done on an adhoc basis nor as a mere handout exercise for whatever reason.

If rewards are to serve as incentives to increase productivity levels, such benefits must be for better performance that is measurable, and that leads to higher level and quality of output and gains.

Underlying the need to raise productivity growth and worker productivity levels is the importance of cooperation between the management or employers and workers in fostering a conducive working environment and increasing the quantum and value of goods produced or services delivered.

There has to be genuine scope for ongoing mutual dialogue among these “social partners” that promotes consensus-building and the democratic involvement of those with vital stakes in raising performance, productivity, profitability and personal rewards.

RUEBEN DUDLEY Former United Nations / ILO Regional Deputy Director for Asia & the Pacific

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Shy boys given rooms to grow as they are lagging girls

 

Schoolboys do relaxation exercises in an all boys class at the government-run Shanghai Number Eight High School. Shanghai, whose school system produces the world's top test-scorers, has launched China's first all-boys high school program with an eye on elite overseas institutions like Eton. Source: AFP

SHANGHAI: Teenage boys in a Shanghai school are on the front line of teaching reform after the world's top-scoring education system introduced male-only classes over worries they are lagging girls.

Rows of white-shirted boys are put through their paces as they are called up individually to complete a chemical formula by teacher Shen Huimin, who hopes that a switch to male-only classes will help them overcome their reticence.

"We give boys a chance to change," she said.

The Shanghai school system topped the Organisation for Economic Co-Operation and Development's (OECD) worldwide assessment tests of 15-year-olds in 2009, the most recent available, ahead of Korea, Finland, Hong Kong and Singapore.

But even so officials are concerned that some male students may be slower than their female counterparts in development and certain academic areas, such as language, and the shift towards single sex classes aims to boost boys' confidence.

Girls do better than boys in secondary school across the developed world, an OECD report found.

A prominent Chinese educator, Sun Yunxiao, found the proportion of boys classed among the top scholars in the country's "gaokao" university entrance exams plunged from 66.2 percent to 39.7 percent between 1999 and 2008.

Across the developed world, girls do better than boys in secondary school, the OECD's Programme for International Student Assessment (PISA) found in a 2009 report on the educational performances of 15-year-olds.

"There are significant gender differences in educational outcomes," it said, adding that high school graduation rates across the OECD were 87 percent for girls but only 79 percent for boys.

In response, Shanghai's elite Number Eight High School is halfway through the initial year of an experiment, putting 60 boys into two classes of their own - a quarter of its first-year students - and teaching them with a special curriculum.

Schoolboys solve a math problem in an all boys class at the government-run Shanghai Number Eight High School in Shanghai.

 "This is a big breakthrough," said principal Lu Qisheng. "There's lots of hope - hope that boys will grow up better.

"Boys when they are young do not spend enough time studying," he explained. "Boys' maturity, especially for language and showing self-control, lags behind girls."

-- "We lack confidence" -

China shut most same-sex schools after the Communist Party came to power in 1949, and the only all-boys junior high schools in the country are privately run.

The number of male students scoring top marks in China's university entrance exams has plunged from 66 per cent to 49 per cent

Shanghai does have an all-girls state-run high school, the former McTyeire School for Girls, which marked its 120th anniversary last year and counts the three Soong sisters - Qing-ling, Ai-ling and Mei-ling - among its former pupils.

Between them they married two leaders and an industrialist. Qing-ling married Sun Yat-sen, the first President of the Republic of China, while Mei-ling wed Chiang Kai-shek, who would also later become president.

Student Li Zhongyang, 15, said he felt less shy about answering questions in his all-boys class, but drew hoots of laughter from his fellows by suggesting an absence of girls let them concentrate more on study.

"We lack confidence," he said. "The teachers like girls, who answer more questions in class. This programme lets us realise we are not worse than girls."

It is something of a contrast to males' traditionally dominant roles in Chinese culture, but principal Lu said the programme "doesn't have much relationship to equality in society".

The scheme was launched after China's government called for more "diversification" in educational choices within the state system.

A Peking University professor has called for an even bolder reform, suggesting in September that boys should start school one or two years later than girls.

"The Chinese education system needs to improve and allow various education methods," Wu Bihu said on his microblog. Now Lu hopes to create China's first all-boys school one day.

"Ten or twenty years ago, there was no need for an all-boys class - just put everyone together," he said.

In an increasingly aspirational society, he added, some families saw the new programme as having connotations of top overseas private schools, and so promising an advantage in the highly competitive gaokao.

"The parents know: England has Eton," he said. - AFP

Are we competent with competencies?

Are you thinking of having or reviewing a competency model? Here are some tips on it

UNFORTUNATELY, the answer to this question, for many organisations, is a resounding NO!

Ever since psychologist David McClelland suggested that we should move away from the traditional measures of predicting job performance in Testing for Competence Rather than for Intelligence, in the early 1970s, many businesses and organisations have used some form of competency model as a key business tool.

Think about your own business or organisation, I am sure that you “have had, have, are thinking of having or are reviewing...” a competency model at this time.

Where are you on that continuum? The key questions are, “Why hasn't competency modeling delivered on its promise for many organisations?” and “Do competencies really add value to businesses and organisations?”

Have competencies been “a HR toy” and not a business tool? Let's look at some of the research behind competency modeling and see if we can answer these questions.

The use of competency models started with McClelland's work in the early 1970s.

A decade later, in 1982, Richard E Boyatzis illustrated a logical, integrated model of managerial competence in his seminal book called The Competent Manager.

His model provided a context for understanding the demands of management, and helped managers understand the competencies required to be more effective.

So, given that we had a reasonable start to the use of competencies in business why haven't competency models delivered greater impact into organisations?

In The Leadership Machine, Lombardo and Eichinger showcase research indicating that most organisations and their leaders identify the wrong competencies for success they don't know how to get at the essence of competency requirements.

They also show that many competency models are too compound trying to cram too many competencies into just five to 10 statements and hoping that will do the job!

In addition, a set of “Core Competencies” can't do the whole job for an organisation either jobs and roles are unique and generally require 20-25 competencies to describe the “Success Profile”.

The truth is all organisations need multiple competency models to fit their many different needs.

Yet, many organisations seem to think that a “one size fits all” approach will work. It's not that easy, I'm afraid.

A great starting point for an organisation, however, is a “Strategic Leadership Model”.

At least, that will let your leaders and aspiring leaders know what the organisation (normally the CEO and the board) thinks is going to be required to be a successful leader over the next five years or so.

A global Conference Board study from 2012 asked senior executives what were the most important items on their talent agenda. The top four (in order) were:

• Grow talent internally;
• Improve leadership development;
• Provide training and development; and
• Hire talent in the open market.

These are all great things to do high on your agenda, too, no doubt!

My question is the same for each point grow to “what”, improve against “what”, develop to “what”, hire against “what”?

I'm sure that you get my point.

Unless you can clearly define what you need in each area usually through a good Competency Model then you really don't know how to direct, focus or orient your growth, leadership development or hiring. Competency models are very powerful tools in this regard.

There are many good researches that show how the effective use of competency models can make a powerful business impact for an organisation.

Here are just a few. A longitudinal study by Russell in 2001 showed that top-level corporate executive performance can be reliably predicted by a leadership competency model. In addition, he showed that a competency-based executive assessment and selection process lead to an increase of US$3mil (RM9.29mil) in annual profit per candidate selected into the organisation.

Pluzdrak conducted a study in 2007 on the effectiveness of a Leadership Development programme and showed that positive changes on the key leadership competencies of individual leaders were positively correlated with both increase in net revenues and profitability!

A 2008 study by Clark and Weitzman used regression analysis to show that the demonstration of 13 core management competencies accounted for 54% of the difference in first-year sales commission and 30% of the difference in levels of retention.

They also found that developing people to be one standard deviation better on the key competencies driving performance generated an additional US$467,000 (RM1.45mil) per person every year!

The original question for this article was “Are we competent with competencies...?” Take a good, hard look at your own organisation and ask the same question.

If your answer is “No, not really... Not as good as we should be...” then remember that you can be and that there is every reason “Why you should be” and “Why you need to be”.

Talking HR with Graeme Field

Graeme Field believes that doing the basics' right getting the fundamentals in order is key to driving organisational success in the future. What we do operationally' today really does impact what happens strategically' tomorrow!

Performance culture lacking, Malaysian workers!

PETALING JAYA: Malaysian workers lack performance culture and generally spend half their working hours on matters unrelated to their job, said experts.

Leaderonomics chief executive officer Roshan Thiran said the laid-back working culture was partly to blame for the country’s low labour productivity.

“We tend to mix our working hours with bonding with colleagues and relationships whereas in other countries, working hours are made full use of,” he said.

He advised employees to perform self-audits to identify unproductive activities in the office that drained their working hours.

A check by The Star with several human resource practitioners revealed that Malaysian workers in general only spend four hours in a regular nine-to-five work period being productive.

Another two hours are spent on social networking sites or browsing through the Internet, whilst long lunches, cigarette breaks, tea breaks and office chatter make up for the other two hours.

Malaysian Employment Federation executive director Shamsuddin Bardan said our low productivity levels could drive away investors to neighbouring countries.

Shamsuddin said the unprofessional attitude among workers was in stark contrast to high-performance nations which encouraged a professional working culture with a focus on developing human capital.

“Some here have the ‘so long as I show up to work, it’s enough’ attitude, which shouldn’t be happening,” said Shamsuddin.

Human resource consultant Dr Asma Abdullah said Malaysian culture generally regarded the workplace as a social unit where work and social interaction mixed.

Meca Employers Consulting Agency executive director Dharmen Sivalingam said some employers had difficulties addressing their under-performing staff.

“Malaysian employers generally find it hard to converse with their employees on the matter of their productivity. It may be because they don’t want to be put in positions where they have to confront their subordinates,” he said.

Sivalingam also said workers in foreign countries were constantly under probation which keeps them performing at their best.

He said managers need to develop a proper key performance index system and see to it that employees understand how they are being assessed.

By NICHOLAS CHENG The Star/Asia News Network

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Malaysians lag in productivity

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Malaysians lag in productivity

PETALING JAYA: Malaysians work longer hours than their counterparts in many benchmark countries, but produce less than them.

According to the Malaysian Productivity Corporation, our employee productivity levels are a lot lower than those of countries like the United States, Japan, United Kingdom, South Korea and Singapore.

MPC director-general Datuk Mohd Razali Hussain, citing the 2011 Productivity Report, said Malaysian workers had a productivity value of RM43,952 a year.

“But compared with Singapore, Hong Kong, Taiwan, South Korea, Japan and the United States, we are still far behind,” Razali said.

He added that the country was still recording an average productivity growth of 4.5% annually, which was lower than that of Indonesia and India.

Labour productivity levels are measured by the real gross domestic product over the number of workers in the country.

“In other words, it is how many workers it takes to produce a profit,” said Razali.

According to the report, which analyses information from the Department of Statistics, workers in the top benchmark countries outperformed Malaysian workers almost six times over.

American workers topped the list with a productivity level of RM285,558 a year, followed by employees in Japan (RM229,568) and Hong Kong ( RM201,485) (see graphic).

In 2011, Malaysia had a productivity growth rate of 4.55%, which MPC said was on track for the country in becoming a high-income nation by 2020 with a productivity level of RM87,500.

However, Malaysians lost out to several benchmark Asian countries like China, which had a growth rate of 8.7%, Indonesia (5%) and India (4.8%).

“Even though we can see there is growth based on the data we have, Malaysian workers have not been creating enough with the resources that we have,” said Razali.

He clarified that an employee's productivity was not measured by the number of hours clocked in but rather by his or her overall output during working hours.

“Actually, most hours are not spent being productive. We have had foreign agencies complain that their Malaysian staff were taking very long tea breaks,” he said.

Razali said that working long hours could even be counter-productive.

“There is a lot of waste in productivity when you drag the hours ... The company would have to pay more for electricity and overtime,” he added.

Razali said management practices should be reviewed to boost productivity.

He stressed the need to reward employees for better productivity with gain sharing, and suggested project-based incentives, improving workplace conditions and providing more flexible time for employees to rest while on the job.

According to the report, productivity levels grew by 2.82% with improvements in labour efficiency recorded in five key economic sectors.

Productivity levels in the services sector expanded by 4.9% to RM53,938 in 2011.

The agriculture sector grew by 6.23% to RM29,466, while manufacturing increased by 1.97% to RM54,509.

Construction productivity levels went up by 3.09% to RM24,635 in 2011, while the mining sector recorded a negative productivity growth of -6.14% to RM866,246 from RM922,914.

Asked why the mining sector had a negative productivity rate when its turnover was higher than other sectors, Razali said this was because the turnover did not correlate with the large workforce.

By NICHOLAS CHENG The Star/Asia News Network

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Design application: 'Watch over me' created by a abduction survivor

Helping others: Chin showing a mobile app “Watch Over Me” which she developed after she was nearly abducted.

PETALING JAYA: Although former Internet marketeer Chin Xin-Ci has recovered physically from her near abduction, the emotional scars are taking longer to heal.

Chin suffered cuts after a cleaver was pressed against her neck by a couple of would-be rapists who pounced on her at the car park of The Curve at around 5.20pm on May 27, 2012.

Two men forced her into the car but she escaped by running out of the vehicle as it was exiting the car park.

Chin has used the experience gained from the terrifying ordeal to good use by developing a smartphone application for personal safety.

Produced in partnership with an app developer, “Watch Over Me” allows users to register for an event.

If they don't “check-in” within a certain time period, a message will be sent out to emergency contact numbers while the camera and voice recorder will be activated automatically and stored in servers.

“With a lot of the other personal safety mobile apps, you'd have to reach for the phone, unlock it and hit the panic button.

“Watch Over Me' also has a GPS tracking system that allows others to determine your location.

“If I had been abducted on that day, no one would know that I had gone missing until the next day,” said Chin, adding that she had been working on the app since October to make it more user-friendly.

After the attack, Chin slipped into depression and went through therapy for four months.

She only started driving alone this year and still does not go to shopping malls alone.

“At first I felt like a zombie.

“There was a lot of fear and anger from having suddenly lost my sense of security,” said Chin.

She added that the attack had made her even more paranoid.

Chin uses the app all the time, together with the 40,000 other users who have downloaded “Watch Over Me”.

“I hope more Malaysian women will use these types of applications.

“If something bad happens to you, at least people will know where you are and some evidence would be captured through the voice recorder and camera,” she said.

There are also other similar safety apps in the market.

By REGINA LEE  regina@thestar.com.my

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Filipinos’ Sulu militant group in Sabah must leave Malaysia today

Muslims at the Golden Mosque in Quiapo district of Manila on Saturday express their support to Sulu Sultan Jamalul Kiram III and followers who are Sabah in press for their claim. DANNY PATA

LAHAD DATU: Malaysia has extended the deadline for the Sulu armed group to move out of Tanduo village and return home to today, following a request from the Philippines.

The Philippine Government had earlier asked for the deadline to be set for Tuesday to allow them to persuade Sultan Jamalul Kiram III to order his brother Azzimudie Kiram and the armed group of more than 100 to get out of Tanduo village in Felda Sahabat 17 where they have been holed up since Feb 9.

The request was made to Foreign Minister Datuk Seri Anifah Aman by his Philippine counterpart Albert del Rosario after the expiry of the Friday deadline.

Anifah, however, told The Star that he had conveyed the decision on the new Sunday deadline to Rosario.

“We are hoping the stand-off will end peacefully with the latest deadline,” he said, echoing Home Minister Datuk Seri Hishammuddin Hussein's statement that he wanted the two-week stand-off to “end sooner than later” without bloodshed.

Hishammuddin told reporters in Kluang that the extended period would not be too long as his ministry would leave it to the security forces to conduct an operation to end the stand-off.

He said the Tanduo incident was different from the country's past experience with armed groups such as Al-Maunah, Abu Sayyaf and Jemayah Islamiah as this group claimed to be descendents of the Sulu sultanate.

However, he said the country's sovereignty and the pride of the Sabah people must not be taken for granted.

The priority of the armed forces was to defuse the situation without bloodshed as it could affect Malaysia's good relationship with the Philippines, he said, adding that the preparation for the deportation of the Sulu group “is in the final stage”.

As the Philippine Government tries to persuade the Sulu Sultan to take their Sabah claim demand to a diplomatic level, the Kiram family has been adamant and had asked Azzimudie's group to stay put in Tanduo.

Although emissaries have been negotiating with Azzimudie, the political pressure in Manila has been mounting on President Benigno Aquino and his Cabinet to resurrect the long dormant Sabah claim following talk that the Oct 15 peace deal with the Moro Islamic Liberation Front had left out the Sulu sultanate as well as Nur Misuari's Moro National Liberation Front.

To help defuse and bring the stand-off to a peaceful conclusion, Philippine Defence Secretary Voltaire Gazmin said he and his Malaysian counterpart, including the armed forces of both countries, were closely coordinating their actions and exchanging information.

Gazmin said the Philippine military had enforced a naval blockade in the Sulu Sea to prevent undocumented Filipinos from entering Sabah as reports emerged that other groups from southern Philippines were poised to help Azzimudie's gunmen.

Stating that the Sulu group was pursuing its Sabah claim the wrong way, Gazmin revealed that six navy ships and a transport vessel were on standby in Tawi Tawi, about a 15-minute fast boat ride to Tanduo village.

By P.K. KATHARASON, MUGUNTAN VANAR and MOHD FARHAAN SHAH The Star/Asia News Network

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China heaps scorn on Abe remarks to boost US alliance (against China)

Washington (AsiaNews/Agencies) - Japan's new Prime Minister Shinzo Abe is in the United States to forge a new and closer alliance with the Unit States in opposition to China. Elected in December, the hawkish Abe arrived in Washington yesterday. Today he is scheduled to meet US President Barack Obama. The timing of the visit is not accidental, given rising tensions with China over a group of islands and North Korea's ever-dangerous threats

.In an interview with a US paper ahead of his trip, Abe voiced hope that the US alliance - and the presence of 47,000 American troops on Japanese soil under a security treaty - would send a message to China. "It is important for us to have them recognise that it is impossible to try to get their way by coercion or intimidation," Abe explained.



VIDEO: CHINA REJECTS ABE’S ACCUSATIONS CCTV News - CNTV English

 The Chinese foreign ministry on Friday continued to slam Japanese Prime Minister Shinzo Abe, who pointed the finger at China on a slate of domestic issues during an interview prior to his visit to the US.

The ministry accused Japan of playing up the "China threat" with ulterior motives.

"China is strongly dissatisfied with the Japanese leader's comments that distort facts, attack and defame China and stir up confrontations between the two countries," Hong Lei, spokesman for the foreign ministry, told a press briefing.

Hong's comments followed others from Thursday and came in response to Abe's accusations, which claimed China had a "deeply ingrained" need to spar with Japan and neighboring countries to "maintain domestic support," according to the Washington Post.

Echoing the Chinese side's requirement for immediate clarifications, Japanese Chief Cabinet Secretary Yoshihide Suga explained Friday that the newspaper misquoted Abe's remarks and had caused a misunderstanding.

Suga said the prime minister has repeatedly emphasized the Japan-China relationship and would push forward strategic and mutually beneficial relations.

Despite the explanation, the transcript of the exclusive interview published by the Washington Post on Thursday showed that the hawkish Japanese leader lambasted China's political and education systems among other issues.

During the interview, Abe said that under the one-party rule of the Communist Party and having introduced a market economy, China needs to maintain high economic growth by seeking resources through coercion or intimidation while teaching patriotism mirroring an "anti-Japanese sentiment."

"Obviously, Abe tries to tarnish China's image in the international community and hype up the 'China threat' before talks with Obama in order to win US sympathy and support," Lü Yaodong, a researcher of Japanese politics at the Chinese Academy of Social Sciences, told the Global Times Friday.

Hong said that only Chinese people have the right to speak about whether China's political system and development strategy are suitable.

"Only those with political bias and ulterior motives would maliciously interpret and blame them," he noted.

Huang Dahui, director of the Center for East Asia Studies at the Renmin University of China, told the Global Times that this reflected the "value-oriented" diplomacy Abe has been adopting to "flatter" the US, adding that the hawkish Japanese leader has also stressed propaganda throughout his political career.

Abe was scheduled to meet Obama on Friday. During a press conference on Thursday, White House Deputy National Security Advisor Ben Rhodes said the meeting is a "further symbol of the President's commitment to the US-Japan alliance as a cornerstone of US economic and security policy, and as a cornerstone of the US-Asia policy."

Danny Russel, senior director for Asia at the National Security Council, said the two leaders are expected to discuss maritime security issues and territorial claims both in the East China Sea and the South China Sea.

In his interview with the Washington Post, Abe also warned that without changing its current policy, China would lose the confidence of the international community, which will result in a loss of foreign investment.

"The logic is ridiculous. It is Japan that has stirred up provocation by 'nationalizing' the Diaoyu Islands. It should rethink its own policies," said Lü.

Regarding such remarks, Russel said Obama would listen to Abe's assessment and views on the current situation in the East China Sea and the consultations between Tokyo and Beijing. He added that the US opposition to coercive actions or unilateral steps threatening the stability of the region has been "clear."

A commentary carried by the Xinhua News Agency on Friday said the US should not be "hijacked" by Japan over the territorial dispute with China, as the US support for Japan on this issue "would not only damage Washington's credibility as a constructive superpower, but also as an important partner of China on many pressing global issues."

Huang said in terms of China-related issues, the US would show its support to Japan as an ally, but would not be led by Japan to sacrifice the China-US relationship.

Sources: AsiaNews.it/Global Times

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Cyberattacks using US IPs' target military - China-fights back

VIDEO: EXPERT SAYS HACKING ALLEGATION ILLOGICAL CCTV News - CNTV English



China’s state media has come out fighting after over allegations of cyberattacks on US companies, and declared the accusations a “commercial stunt.”

Earlier this week, Alexandria based Internet security firm Mandiant, said Chinese military cyberspy unit had been targeting US and other foreign firms and organisations in hacking attacks.

But China Daily have hit back, writing: “One cannot help but ask the real purpose of such a hullabaloo.”

The paper added:

“With the US economic recovery dragging its feet, it is reasonable to think that some in Washington may want to make China a scapegoat so that public attention is diverted away from the country’s economic woes.”

China Daily also quoted defense ministry spokesman Geng Yansheng as saying the People’s Liberation Army had also been targeted in a “significant number” of cyberattacks.

“A considerable number” of them originated in the United States, judging from the IP addresses involved,” he said, but added that he did not “accuse” the US government of being involved.

According to Agence France-Presse, Mandiant’s report alleges that the hacking group “Advanced Persistent Threat” (APT1), was part of the Chinese military’s Unit 61398. Mandiant also said APT1 have stolen hundreds of terabytes of data from at least 141 across 20 industries, some of whom are involved with US domestic infrastructure.

But official state news agency Xinhua said the Mandiant report “reeks of a commercial stunt”.

“Next time,” wrote Xinhua in a stinging commentary, “the CEO could simply say: ‘See the Chinese hackers? Hurry up, come and buy our cyber security services.’ ”

The state news agency added that the US had a “matchless superiority and an ability to stage cyberattacks across the globe”, and that the US military had “established a significant cyber force, including the 780th Military Intelligence Brigade, which is a regular military unit tasked with carrying out cyber missions”.
In a further missive, Xinhua said Washington had a “habit of accusing other nations based on phony evidence,” adding:

“Facts will eventually prove that the cyberattacks accusations are groundless and will only tarnish the image and reputation of the company making them, as well as that of the United States.”

The comments in China’s media comes after President Obama’s administration executive order on February 12 which promised to aggressively combat the increase in cyberattacks pursuing trade secrets that could threaten domestic economic and national security, Mondaq reports.

In a report titled the Cyberspace Policy Review, the White House did not explicitly name China as a threat, but the inference was clear.

The step-up on US cyber-security follows well publicized claims of hacking attacks from Chinese sources at The New York Times, The Washington Post and the Wall Street Journal.

White House Press Secretary Jay Carney said Tuesday, “We have repeatedly raised our concerns at the highest levels about cybertheft with senior Chinese officials, including in the military, and will continue to do so. This is a very important challenge.”

At a subsequent press briefing on Wednesday, Carney added there could be possible trade restrictions imposed on China.

But some experts say most the documented cyberattacks have been linked to Eastern Europe, with the remainder linked to the U.S. and only a handful to China.

“There are too many people right now saying, ‘the sky is falling,’ without proposing cost-effective solutions, which is causing a lot of confusion,” said James Hendler, professor of computer science at Rensselaer Polytechnic Institute in Troy, New York, IB Times reports.

Spurred by private sector, Malaysia economy grows 6.4% in Q4, 5.6% for 2012 vs 5.1% in 2011

KUALA LUMPUR: Malaysia's economy recorded a spectacular performance in the last quarter of 2012, growing 6.4%.

This is the highest quarterly growth since two and a half years ago and was buoyed by robust manufacturing and construction sectors.

It supported the overall economic growth for 2012 that expanded to 5.6% compared to 5.1% in 2011.

Economists polled by Reuters had forecast that the growth of the fourth quarter would accelerate to 5.5% from 5.2% in the previous three-month period, and forecast a full-year growth at 5.3%.

All sectors registered positive growth with the services, manufacturing and construction sectors continuing to be the key drivers in the supply side.

Many experts believed that the Economic Transformation Programme, with its multi-billion projects, had to a great extent supported the growth in the construction sector that carried spill-over effects onto other sectors.

Bank Negara Malaysia said total investment remained robust and was the main driver of growth during the quarter.

“The growth of private consumption continued to remain strong although the pace of increase moderated.

“The growth during the quarter also benefited from a significantly lower negative contribution from net exports.

“On the supply side, most economic sectors recorded improvements in growth during the quarter,” it said in a statement yesterday.

The main drivers of the economy in the fourth quarter included domestic demand that continued to expand by 7.5%.

Private sector investment advanced by 20.2% supported by capital spending in the domestic-oriented manufacturing and consumer-related services sub-sectors, namely telecommunications, real estate and aviation and the on-going implementation of projects in the oil and gas sector.

Investment was also supported by capacity expansion in the primary-related manufacturing cluster and capital spending in new growth areas such as medical and communications equipment.

Public investment expanded by 11.1%, driven by capital spending by public enterprises in the transportation, utilities, oil and gas and communications sectors.

Bank Negara said the headline inflation rate, as measured by the annual change in the Consumer Price Index, continued to moderate to 1.3% in the fourth quarter.

Going forward, Bank Negara said there were emerging signs of improvements in the global economy where the latest economic indicators also suggested further stabilisation in growth performance in Asia. - The Star/Asia News Network