S P Setia's head honcho Liew resigns, looking forward to mentoring in Eco World

Ten months after S P Setia Bhd unveiled its succession plan, head honcho Tan Sri Liew Kee Sin has announced his intention to resign as president and chief executive officer.

Also quitting the company is chief financial officer Datuk Teow Leong Seng.

Liew’s departure was expected by industry observers but Teow’s resignation came as a surprise as he was named deputy chairman in the property player’s succession plan earlier, analysts told StarBiz.

Liew would leave the property giant on April 30 while Teow would stay on until July 31.

Liew and Teow would continue to be involved in the Battersea Power Station project in London until September 2015 given the prominence of the international project.

Liew would also remain managing director for Qinzhou Development (M) Consortium Sdn Bhd, a Sino-foreign joint venture company to develop the China-Malaysia Qinzhou Industrial Park in the republic until the same period.

Sources said the property magnate would eventually emerge in Eco World Development Group Bhd after his stint in S P Setia.

It is also speculated that present chief operating officer Datuk Voon Tin Yow, who was appointed the company’s acting president and chief executive officer, might also resign later.

In a statement, S P Setia said Voon’s appointment would be effective from May 1, 2014 until April 30, 2015.

Voon would be supported by executive vice-president Datuk Khor Chap Jen who would be appointed acting deputy president during the same period, it said.

Non-independent non-executive director Tan Sri Lee Lam Thye has also resigned yesterday to focus on his new role as the deputy chairman of the National Unity Consultative Council.

S P Setia chairman Tun Zaki Tun Azmi said: “Whilst the board and I are greatly saddened by the departure of Liew, Teow and Lee, we are confident that the group will continue to be in steady hands under Voon and Khor.”

Observers expected its biggest owner Permodalan Nasional Bhd (PNB) to take more proactive measures in managing its talents as well as setting the company’s direction going forward.

It was earlier reported that Datuk Jamaludin Osman of I&P Group Sdn Bhd – PNB’s property arm – was among the candidates tipped to take over Liew’s stewardship. There were also talks of a possible asset injection by PNB into S P Setia.

Liew said: “Given the solid footing which the company is on, I believe the time has arrived for me to step down after 18 years as CEO.

“With my children all growing up and starting out on their own career paths, I am looking forward to spending more time with them, mentoring and guiding them.”

Liew’s eldest son, Tian Xiong, is a major shareholder and director in Eco World, another property firm set up by former S P Setia top brass.

S P Setia fell five sen to close at RM2.88 while Eco World was up one sen to RM4.15.

Analysts said the market has priced in Liew’s retirement from S P Setia and they expected the company’s operation to remain intact for the time being.

Bloomberg data showed that its forward price-to-earnings (P/E) was 13.4 times compared to 16.06 times currently. Its average P/E ranged from 17 times to 20 times from financial year ended Oct 31, 2011 (FY11) to FY13.

Liew is instrumental in growing S P Setia from a RM200mil entity in 1998 into a multi-billion ringgit international property company.

With him at the helm, S P Setia achieved sales of RM8.24bil in FY13, almost double from what it registered in FY12.

The group has 4,782 acres of undeveloped land bank worth RM102bil while its unbilled sales stood at RM9.6bil as at FY13.

- Contributed by Ng Bei Shan The StarBiz/ANN

Who’s who in Eco World

Fresh from graduating as a Bachelor of Commerce from Melbourne University late last year, Liew Tian Xiong, 22, is not short of persuasive skills that a sales person possesses as he introduces EcoSky to StarBizWeek when we visited Eco World Development Sdn Bhd’s sales gallery.

In fact, one of the key performance indicators he has to meet, is to sell off 30 units of its KL project, EcoSky, which will then determine whether he gets his bonus.

Besides sales and marketing, he is also involved in project planning, land acquisition and liaising with land consultants.

Asked on people who influenced him, the affable young man says: “I have probably learnt from my father throughout my whole life. He taught me to keep my head down and listen to people, and to keep asking questions.”

He says he has learnt from both CEO Datuk Chang Khim Wah and COO Datuk S. Rajoo and what he is going through, is essentially a fast track management training programme.

Chang says: “There is a lot of things (for him) to learn. He’s doing groundwork like sales and marketing, planning and reading legal documents although he is holding the director’s card.”

“Tan Sri Liew (Kee Sin) told me that I can scold him (Xiong). I was scolded by Tan Sri Liew back then, so it’s pay back time now,” Chang jokes.

However the relationship among the management team when StarBizWeek met up with them is warm and fervent.

Chang quips: “We even play futsal with him (Xiong)… ”

The experienced management personnel like Chang and Rajoo had known each other for about two decades, but Xiong, at his tender age, seems to be gelling well with them.

Xiong’s younger brother, Tian Rong, 20, is also with the company as a contract staff. He is pursuing an economics degree from University London College and is having a stint in the company.

The man who helms Eco World, Datuk Chang Khim Wah, 50, joined S P Setia in 1994 and had been there for about 20 years. Prior to that, he was a consultant engineer in Australia. He was one of the members instrumental in setting up S P Setia’s Johor Baru division and went on to set up an office in Singapore and Jakarta.

He concedes that the team has S P Setia’s DNA in terms of team effort and competitiveness. His relationship with Liew was depicted as an understanding that required little words.

“We don’t speak long sentences (but) we understand each other,” he shares.

Chang’s counterpart, Rajoo, 50, assumes the position of COO in Eco World. He spent his first seven years in S P Setia in the Klang Valley helping the development of Bukit Indah Ampang and Pusat Bandar Puchong

and subsequently in some of the township developments in Johor where he then worked closely with Chang.

After that, he was overseeing S P Setia’s projects in the northern region for seven years and had carried out 13 projects with a gross development of more than RM2bil in the Pearl of the Orient.

Heah Kok Boon, 46, the chief financial officer of Eco World, is a chartered accountant who has over two decades of experience in the field of corporate finance, corporate fund raising, investments, merger and acquisition as well as other finance-related areas.

He was with S P Setia’s corporate affairs department for six years prior to his current role.

When introducing the major shareholders behind Eco World, Chang says Leong and Rashid are the two major shareholders.

“These two names are more than enough (for Eco World’s credibility),” Chang says, joking that Xiong has no shares in the property outfit.

One of its major shareholders and directors, businessman Tan Sri Abdul Rashid Abdul Manaf, 65, was trained as a legal practitioner from Middle Temple London.

He was chairman for the board of S P Setia Bhd from March 12, 1997 until Oct 25, 2012.

Another director, who is a corporate figure, is Datuk Eddy Leong Kok Wah, 58. He holds a master of business administration from University of Hull, United Kingdom, and is also a member of Institute of Bankers (UK). He has an extensive career in the banking industry and is currently an executive director of Salcon Bhd and also sits on the board of a few other companies. He was in S P Setia’s remuneration committee from Sept 21, 2005-Feb 28, 2013.


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Stupid fellow ! Dr Ling, former Malaysian Transport Minister slams Attorney-General

 

UTAR Council Chairman Tun Dr Ling Liong Sik speaking to the media regarding UTAR Initiatives and Developments at the Sg Long Campus, Kajang on Tuesday.

KAJANG: There was nothing wrong in the land purchase for the Port Klang Free Zone (PKFZ) project, said former transport minister Tun Dr Ling Liong Sik.

“The Cabinet was correct in deciding on that. It’s only the A-G (attorney-general who) thinks it’s a wrong decision. Stupid fellow,” he said at a press conference here yesterday to announce Universiti Tunku Abdul Rahman’s (Utar) latest initiatives and developments.

Dr Ling also said the land was sold to PKFZ at RM21 psf. He added that the land is now valued between RM70 to RM80psf, saying that it was already a profit.

Dr Ling and another former transport minister Tan Sri Chan Kong Choy was charged for cheating the Government over the PKFZ project. Both were later acquitted.

Dr Ling was acquitted on Oct 25 last year on three charges of cheating the Government over the PKFZ land deal. The trial began in August 2011.

Justice Ahmadi Asnawi, in delivering the judgment last year, held that the defence had managed to raise reasonable doubt into the prosecution’s case over the main and two alternative charges against Dr Ling.

Justice Ahmadi added that there was no evidence on who initiated the PKFZ project involving the procurement of the land.

The court found that Dr Ling’s evidence was corroborated by the testimony of former prime minister and then-finance minister Tun Dr Mahathir Mohamad.

Justice Ahmadi added that it was apparent Dr Ling merely signed off documents presented to him by his officers and later made the presentation to the Cabinet.

He said that when the Cabinet decided to approve the purchase of the land by Port Klang Authority (PKA) from Kuala Dimensi Sdn Bhd (KDSB), the Cabinet knew that the value of RM25psf did not include the total amount of interest payable and that interest of 7.5% would be payable over and above RM25psf.

Besides that, Justice Ahmadi said that the purchase of the land was not decided over a single Cabinet meeting but rather it was deliberated periodically between March 1999 and Nov 6, 2002.

Utar plans training hospital 

KAJANG: Universiti Tunku Abdul Rahman (Utar) plans to open a specialist training hospital in Perak that will be named the Sultan Azlan Shah Hospital.

Utar council chairman Tun Dr Ling Liong Sik (pic) said the specialist training hospital would be located near the university’s Kampar campus, though he stopped short of mentioning any time frame for construction.

“The hospital will offer treatment using traditional Chinese medicine (TCM) as well as Western or conventional medicine,” he told reporters yesterday to announce the university’s latest initiatives and developments.

Dr Ling said the hospital, which would serve the public, would be used to train medical students.

According to the Utar website, the university has been accepting students for its Bachelor of Medicine and Bachelor of Surgery (MBBS) programme since May 2010, while it was also the first institution approved to offer a bilingual TCM degree programme in Malaysia from May 2011.

Speaking at a press conference yesterday, Dr Ling said the land for the hospital had been donated to Utar by Perak ruler, Sultan Azlan Shah.

Utar president Prof Datuk Dr Chuah Hean Teik said the university would help to build and operate the hospital.

Separately, MCA president Datuk Seri Liow Tiong Lai announced that Dr Ling would helm the newly set up MCA Higher Education Institutions Coordination Committee.

The committee is tasked with streamlining the courses offered by the four educational initiatives of MCA: Tunku Abdul Rahman University College (TARUC), Tunku Abdul Rahman University (Utar), Kojadi Institute and the Institute Of Childhood Education Studies and Community Education.

Liow noted that they were “overlapping” courses offered by TARUC and Utar, especially after the former was upgraded from a college to university college last year.

Asked on why Dr Ling was picked for the post, Liow said: “He is a veteran who has shown his commitment and contribution to the development of the two institutions.

“Now we want to further develop the MCA higher learning section, and we need a lot of effort to synchronise and synergise to ensure that we can perform better in this area,” he added.

Sources:

The Star/Asia News Network

 

Old and abandoned, now newborn baby found abandoned outside house !

Rescued: The baby that was found in Kampung Sungai Sebatang in Alor Setar.

ALOR SETAR: A teenager was awakened from her sleep by the cries of a newborn baby outside her house in Kampung Sungai Sebatang off Jalan Kuala Kedah here.

Normawani Ahmad, 17, said she was awakened by the baby’s cries at about 3am yesterday.

“I looked out the window and saw the wailing infant, who was placed on a red plastic mat. I also heard someone walking away from my house while the baby was crying,” she said when met at the Sultanah Bahiyah Hospital yesterday.

Normawani called her mother, who was sleeping at another daughter’s house next door. They found the baby with the umbilical cord still attached to the body.

“My mother cleaned up the baby and dressed him in my nephew’s clothes.

“We then lodged a police report,” she added.

Kota Setar OCPD Assist Comm Adzaman Mohd Jan said police were looking for the mother and the case has been classified as child abandonment under the Penal Code.

Sources: The Star/ANN

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Old and abandoned by children like trash !

The forgotten: Foong with an elderly inmate of Rumah Kasih in Taman Mutiara Barat.

PETALING JAYA: Each week, at least 10 elderly Malaysians end up in old folks homes and that is just the official average, based on centres registered under the Welfare Department.

According to department director-general Datuk Norani Hashim, an average of 536 elderly persons were placed in registered centres each year between 2009 and 2012.

“The actual number could be much higher as some privately run homes are not registered with the department,” she said.

She said between 1993 and last year, a total of 4,968 senior citizens were placed in 211 centres nationwide.

“Perak has the most number with 1,339 in 56 centres, followed by Selangor with 860 in 45 centres but only nine of the centres are under direct supervision of the department,” she added.

In Kuala Lumpur, Foong Peng Lam, the coordinator of Rumah Kasih, which takes in old folks and patients found abandoned in government hospitals, said at least one person was admitted each week.

He said most of the patients were abandoned because their families claimed they could not afford to take care of them.

“Their family members do not provide any form of financial assistance and do not come over to visit,” he said.

The home has taken in over 600 abandoned individuals since its inception in 2000.

“Weak elderly people who had collapsed by the roadside were also brought in by strangers.

“There were also those who were brought in by family members who never return to visit or take them home,” he said.

Foong said the number of abandoned patients had been increasing steadily – from seven in 2000, to the 60 at present.

Apart from Hospital Kuala Lumpur, the home has been taking in patients from Hospital Universiti Kebangsaan Malaysia, Hospital Selayang, Tung Shin Hospital, Hospital Seremban, Hospital Sungai Buloh, University Malaya Medical Centre, Hospital Ampang and Hospital Kajang.

He said the hospitals would first try to contact the families, who would usually promise to take the patient home, but never turn up.

“This can go on for up to two months before they bring a patient in.

“Even when we manage to contact the families they usually refuse to take any responsibility,” he added.

Figures from the National Population and Family Development Board, an agency under the Women, Family and Community Development Ministry, show that about 675,000 elderly parents did not receive financial support from their children in 2004 when the Fourth Malaysian Population and Family Survey was conducted.

 Abandoned by loved ones after becoming ‘worthless’ 

KUALA LUMPUR: S.K. Cheng, 65, spent three months at Hospital Kuala Lumpur (HKL), waiting for his family to take him home.

The diabetic collapsed while walking by the roadside in September last year.

He woke up in the hospital and was told that his left leg would have to be amputated below the knee.

“I did not take care of my children when they were younger. That is why they do not want me now. I could not afford to take care of them well because I did not have enough money,” he lamented at the Rumah Kasih in Cheras, his current home.

Cheng said he used to work in a coffee shop and lived with his wife and three children.

He said his wife passed away 10 years ago and his son and daughters soon moved on with their lives elsewhere.

They came to visit him at the hospital once, but that was the last time he saw them.

Another inmate, also surnamed Cheng, said she was also left at HKL for nearly three months before she was sent to the home.

The woman, in her 70’s, was bedridden after suffering a stroke.

Her son, in his 40s, did not want to take her home because he could not afford the medical bills.

“She used to work odd jobs and was living with her son before she became ill.

“Her son just dumped her, expecting the hospital to care for his mother,” said a caretaker at the home.

While most Rumah Kasih patients are elderly there is also a 36-year old woman known only as Chan.

She spent six weeks in Hospital Selayang without anyone in her family visiting her.

“I used to be happy. I was working as a cashier and was married with three young children.

“When I suffered a stroke and became paralysed, my husband left me at the hospital and left my kids with my father,” she said.

“He said he could not take me. Now that I cannot work anymore I am worthless and they do not want me.”

Contributed by  P Aruna, Farik Zolkepli, Zora Chan, and Vanes Devindran The Star/ANN

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 Go see your parents... or else!

Go see your parents... or else!

Malaysians are still divided on the need of a filial piety law, but many countries in the world are already enforcing it.

IF you are disrespectful to your elders, you will be tortured and killed - that was the law during the Han Dynasty in ancient China. Although the death sentence is no longer mandatory for such behaviour in modern China, it is still a crime under its newly revised law Protection of the Rights and Interests of the Elderly.

Enforced in July last year, the Act lists nine new clauses that stipulate the duties of children - finacially and emotionally - towards their elderly parents. A main clause requires family members living apart from the elderly to “frequently visit or send greetings to the elderly persons.”

And if that is difficult for those living far away, a provision was included requiring employers to allow their employees time off to visit their elderly parents. However, no punishments were stipulated for those who neglect their parents.

The law allows senior citizens to sue their children and get a court order for financial aid, care and visits.

It was introduced due to the growing number of cases of the aged being abandoned in China in the last few decades, despite the deeply ingrained filial piety belief in its culture. In 2011, it was reported that nearly half of the 185 million people aged 60 and above live apart from their children.

An ageing population was also the impetus behind India’s 2007 filial piety law which states that adult children have an obligation of fulfilling all their parent’s needs including housing, food, and medical care. Failure to do so is punishable by hefty fines, and jail.

Closer to home, Singapore has enforced a Maintenance of Parents Act since 1999. The law also allows parents to sue their grown children for an allowance and care; or face six months in jail.

What many will find surprising is that filial piety laws are also practised in the United States, or rather in 30 American states. What is more surprising is that they are based on a law dating back to 1601, the Elizabethan Poor Relief Act, which stipulated that “the father and grandfather, and the mother and grandmother, and the children of ‘every poor, old, blind, lame and impotent person’ being of a sufficient ability, shall, at their own charges, relieve and maintain every such poor Person.”

The American filial piety laws differ from state to state but each generally describes the responsibility of children to provide financial support to their parents.

Many of the laws enable nursing homes to sue the adult children for their parents’ unpaid medical bills. A dozen states stipulate it a crime punishable by jail. South Dakota allows children who have been sued to get a court order for their siblings to pitch in.

Six states make grandchildren accountable.

As many have found out, living in another state does not protect them against a lawsuit – in 2007, Elnora Thomas from Florida was reportedly sued by her mother’s nursing home in Pennsylvania for unpaid bills. When she was unable to cough up the money, she was told they would put a lien on her house.

In France, the filial piety law allows senior citizens to get cash and care from their children-in-law too. Other Western countries that mandate financial support from adult children to their aged parents are Canada, Ukraine and Russia.

Can you legislate filial loyalty and love?

ONE of the cases that pushed the government of China to mandate filial piety was in Jiangsu province where a local TV station reported that a farmer had kept his 100-year-old mother in a pigsty with a 200kg sow.

94-year-old Zhang Zefang won her suit against her four children for financial support and care.

Last December, 94-year-old Zhang Zefang won her suit against her four children for financial support and care. They were ordered to split her medical bills and take turns to look after her. Due to their own financial problems, the siblings asked the youngest brother to take her in. He put her up in his garage - which was in a condition arguably worse than a pigsty.

Whose responsibility is it to look after the aged?

A CRITICISM of the filial piety law is that it is an attempt by the government to pass the buck of elderly care to the people with the growing size of the ageing population and escalating costs of healthcare, property and general living.

Another concern is for those who were abused by their parents when they were younger – should they be legally bound to care for the abusive parents?

Recently, the father of K-pop idol group Super Junior leader Leeteuk hanged himself after killing his own parents.

He reportedly suffered from depression due to the overwhelming financial and emotional burden of caring for his elderly parents who had dementia.

The high publicity case has sent the republic into a national debate on the public support system available for carers and relatives of the elderly suffering from serious illnesses, especially Alzheimer’s and Parkinson’s diseases.

In New York last week, a group of 70-something Korean-Americans were evicted from a McDonald’s restaurant for overstaying – they reportedly hogged the tables at the eatery from 5am until dark every day, affecting its business. The senior citizens are not homeless; they just have no other place to hang out together!

Symbols of filial piety

In Japan, filial piety is embodied in various statues called kohyo no zou (filial piety statues) around its public buildings and temples. One of the most famous statues is that of Nippon Foundation founder Ryoichi Sasakawa carrying his elderly mother up the stairs of a temple.

In China last year, Guangzhou Daily highlighted the filial heroics of a 26-year-old man who pushed his disabled mother for 93 days in a wheelchair for a holiday at a popular tourist site in Yunnan Province.

Filial tradition

FILIAL piety is a key virtue in cultures rooted in Confucianism such as that of China and South Korea. It is defined as respect for one’s parents and ancestors. However, the concept is well-ingrained in many other cultures too.

Known as seva in the Indian culture, filial piety is demonstrated at various traditional ceremonies including weddings where the young would serve milk to the elders and wash their feet.

In the Malay culture, the tale of Si Tanggang is used to caution the young on the consequences of filial impiety.

Si Tanggang is a poor young boy who goes off to sea in search of his fortunes. He promises to return for his mother when he makes something of himself. However, when he gets rich, he forgets her. When he returns after many years, she rushes to the shore with his favourite dish, but Si Tanggang is so ashamed of his poor mother that he refuses to acknowledge her. Worse, he orders his men to throw her off his ship. Heartbroken, Si Tanggang’s mother prays for God to turn him into stone.

For the Muslims, filial piety is asserted in various Quran verses and Hadith. A common reminder is “Heaven is at the bottom of your mother’s feet.”

Similarly, in the Jewish and Christian traditions, filial piety is asserted in various instances of their holy texts, such as the Fifth Commandment which says “Honor your father and your mother”.

Contributed by Hariati Azizan The Star/Asia News Network

A question of talent in Malaysia

In addition to drawing Malaysians home to work, we should equip, educate and train citizens so that they have equal opportunities to excel.

The success of Talent Corporation – a brilliant idea by the prime minister to lure Malaysians abroad to return home to live and work – has been quite impressive.

I am told that many talented Malaysians have answered the prime minister’s call to help transform the nation’s economy and I’d like to think that these Malaysians have returned not just because of the lower tax rate and other personal incentives (such as tax exemptions for two completely knocked down cars) but because they truly have something valuable to offer the country.

I do not for a moment think that these Malaysians returned because they found it tough to work abroad.

Instead, I think they have taken the opportunity under the Talent Corp programme to contribute their expertise and talent to Malaysia’s growth and development.

Although it has been successful since its inception in 2011, Talent Corp (and other organisations that provide incentives to lure Malaysians home) can only be a short-term solution at best.

The longer we rely on Talent Corp, the deeper the failings of our system will get and the more serious they will become. We will continue to be unable to provide the educational training necessary to produce a skilled workforce or to retain existing Malaysians.

There are many reasons why people emigrate and work elsewhere but most leave the country because they believe that their prospects in life will improve or because they no longer feel they belong – alienation and social injustice have driven them away.

Hence, while many millions have been spent on Talent Corp (and spent wisely), I urge the government to remain committed to building capacities within our country as well.

I am not thinking of spending millions of ringgit a la BR1M (people's aid) but of giving the nation the right dose of the good old work ethic.

Schools, besides exhibiting photographs of leaders, should be places where the right values can be inculcated.

The government, via the state apparatus available to it, needs to emphasise on a daily basis the importance of hard work and the inherent character-building effects of such an effort: for example, we’d certainly have enough television airtime for educational programmes if we were to dispense with some of the more sensational shows.

The effects on employment will be obvious. If we look objectively at why we need so many foreign workers, a large chunk of our workforce neither has the right work attitude nor does it feel sufficiently motivated to work hard.

It’s true that some employers take advantage of the presence of foreign workers to depress wages but it also quite clear to many employers that foreign workers work harder and smarter.

It’s not good policy to live with this situation and look for the easy way out (that is, to keep relying on and exploiting foreign labour) without putting serious effort into changing the values and attitudes of our own workforce.

In my experience there is hardly anyone who is incorrigibly bad and beyond help.

People want to better themselves but sometimes they need to be given a leg up. Everyone is capable of realising his or her true potential through nurture, patience and perseverance.

The attitudinal change we need in this country must come from our political leaders as well as employees and employers.

Malaysians are capable of many things and must never doubt this: the sacrifice we all need to make is to be patient, to endure the difficulties of training, and to help the less able and skilled to achieve their goals.

If an analogy is required, I shall say that leaders must learn to appreciate growing their own vegetables and rearing their own chickens. The satisfaction that comes from this is far more valuable than just depending solely on buying groceries from air-conditioned supermarkets.

This is where we must embrace the culture of meritocracy wholeheartedly.

In Malaysia today, meritocracy is a bogeyman, especially among Malays, who are terribly afraid of it without even knowing what it is, and we must discard the notion that meritocracy will have unintended discriminatory or negative effects on any given social group or ethnic community.

Let’s start by understanding what the word means, which is simply this: if we have ability and talent, then we should be rewarded.

We should not reward someone merely because he or she belongs to a certain class or has some inherited privileges.

The idea is simply to inspire and motivate all citizens through ability and sheer hard work. It also means that society and government have a grave responsibility to equip, educate and train citizens so that they have equal opportunities to excel and contribute to our nation.

Citizens can then propel themselves forward and build bigger and better things for the country, which in turn transforms our economy and society. It’s a liberating idea.

Women in our workforce, for example, are fully capable of taking on more demanding tasks at senior levels but we only hear of policies intending to provide them more access to top positions – little has happened to translate policy into action.

The prejudice against women bosses is still widespread and is based on a lack of appreciation for the positive contributions they make.

The skill sets that women bring to the table are largely ignored by men who are worried that their own positions will be threatened.

But as long as women are ignored at the top levels of decision making, the country will lose out on capturing the special talents and skills they possess.

There is also a great deal of prejudice in our society against gays and other minorities who, from my personal experience, are as diligent and capable of great achievements as anyone else.

I have friends who are world-class professionals and possess great ability and integrity who belong to these minorities, and yet we seem to love waging war against them for reasons I cannot comprehend.

If we put more emphasis on creating enemies among our own people, or putting up barriers to excellence because others “threaten” our own positions, then we will never produce the right attitudes or values.

The government must lead, inspire and motivate our workforce by example and through the effective implementation of policy. Malaysians deserve fair wages, adequate training and just rewards when they achieve their targets.

This is a long-term project, of course, but nothing worthwhile can be achieved if we lack perseverance.

As such, Malaysia continues to need Talent Corp but the local workforce needs respect and encouragement if the transformation of our country is to succeed sustainably.

 Contributed by  Zaid Ibrahim, The Star/ANN

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China successfully tested new ultra hypersonic missile vehiche seeks to calm US fears

China hypersonic missile test not targeted at any country: DM CCTV News - CNTV English

The Ministry of National Defense issued a statement on Wednesday dismissing media reports that China's recent ultrahigh-speed missile test flight was aimed at delivering warheads through the missile defenses of the United States.

"It is normal for China to conduct scientific experiments within its borders according to its plans. The tests were not aimed at any nation nor any specific target," the ministry said in a written reply to China Daily.

Western media have been playing up the significance of the hypersonic missile delivery vehicle test since The Washington Free Beacon news website quoted an anonymous Pentagon official as saying that the test was conducted with the aim of sending warheads through US missile defenses.

In an article on the test, the website reported that the new hypersonic missile was detected traveling at extremely high speeds over China.

US Pentagon spokesman Jeffrey Pool told the website, "We routinely monitor foreign defense activities and we are aware of this test."

Observers said reports that play up competition on military capabilities indicate a lack of mutual understanding on the part of the militaries of China and the US, but the misperceptions can be resolved through talks.

Lack of mutual strategic trust between the two nations is the reason why the US is worried about China's military development, said Fan Jishe, an expert on US studies at the Chinese Academy of Social Sciences.

"Washington is afraid that China's growing power will reduce its influence in the region, and threaten the interests of its allies, such as Japan and the Philippines. ... The US still enjoys the leading position in military ability, both strategic weapons and conventional armaments," Fan said.

"The US has been devoted to high-tech weapons research for a long time, and China is still rather backward in this field," he said.

China has been sufficiently transparent on developments in its military technologies to allow for the development of mutual trust with other nations, he added.

Li Qingkong, deputy secretary-general of the China Council for National Security Policy Studies, said, "There is no need for the US or any other country to worry about the development of the Chinese military, given that China's military expenditure is much lower than that of the US."

Such weapons use cutting-edge technology for flying and maneuvering at ultrahigh speeds in space and within the Earth's atmosphere.

The advantages of hypersonic craft include precise targeting, very rapid delivery of weapons, and greater survivability against missile and space defenses.

The Washington Free Beacon said the US, Russia, and China are all engaged in research on hypersonic weapons, while India is also developing a hypersonic variant of its BrahMos cruise missile. - China Daily

Fighting ivory trade the China way

China crushed 6.1 tons of ivory on January 6. Image: @thewcs

CHINA, which has been described by conservationists as the world’s leading hub for the illegal ivory trade, took everyone by surprise recently by destroying some six tonnes of confiscated ivory from its stockpile.

The landmark destruction of the confiscated ivory and products such as carvings and ornaments, which were said to be amassed over the years, is indeed a good piece of news for the world and China deserve all-round applause. The fact that China chose to destroy the ivory on the first week of the New Year is a symbolic gesture of the Chinese leadership that they are in sync with the views and feelings of conservationists and animal-lovers on the subject.

The act of destroying the confiscated ivory in public for the first time by the Chinese authorities indicates that China is not prepared to tolerate the illegal trade in elephant ivory any more. The destruction of the ivory in Guangdong province sends a very powerful message to the Chinese people and the world that China is concerned with animal welfare and it is prepared to work with the international community in protecting and conserving our endangered wildlife.

Ivory is said to be a prized status symbol in the well-to-do Chinese community and it is used in traditional crafts and carvings. China and Thailand have been singled out as the two countries where the demand for ivory has been fuelling poaching activities in Africa according to the Convention on Interna­tional Trade in Endangered Species.

It was recently reported by the International Fund for Animal Welfare (IFAW) that an estimated 35,000 or more elephants are slaughtered annually in a barbaric manner by poachers for their ivory.

Ivory, which has been referred as “white gold”, is said to fetch between RM7,000 and RM8,000 per kg in the black market.

Ivory trafficking apparently is taking a toll on the elephant population around the world and its related activities are now seen by many countries as a threat to regional security.

The decision of China to step forward, perhaps for the first time in history, to destroy part of its stockpile of confiscated elephant tusks and products is indeed a giant step towards conserving and safeguarding these magnificent animals that roam our jungles.

Back home it is heartening to note that the Malaysian authorities too have been on high alert to these ivory smuggling activities. The several tons of ivory shipments worth millions of ringgit seized by our authorities over the years is still under lock and key.

I urge the authorities to emulate China’s move and destroy all the confiscated ivory in public.

Since no one has been arrested so far and we are not seeing any development on the matter, it is advisable for the authorities to destroy all the illegal ivory in our stockpile.

Destroying the confiscated stockpile of ivory will send a strong message to all parties concerned that Malaysia too does not tolerate ivory trafficking and it’s equally serious in wildlife conservation and protection.

The destruction of our stockpile will put a stop to all the speculation and allegations that some of the confiscated ivory in our stockpile has been “leaking out” secretly and is found on the black market.

The destruction of confiscated ivory in countries along the illegal ivory trafficking trade chain will send a powerful message to consumers all over the world that buying is unethical and wrong.

When the Chinese, who are well-known in the world to treasure ivory and its products, can come forward to destroy their stockpile to show their concern and support for wildlife conservation and protection, I am sure we can do the same or better.

Contributed by S. PARAM Ipoh Malaysia

Canadian entrepreneur: Malaysia conducive for start-ups

Hirsch: ‘It takes less than RM20,000 to start a new company within MGVD

KUALA LUMPUR: Canadian entrepreneur Adam Hirsch, who focuses on tech start-ups, finds Malaysia a conducive place for start-ups, not just because of low operational cost or the English language proficiency of the people, but also the ability to get fast results here.

With a recommendation from a friend in 2012 to start his business here, Hirsch told StarBiz: “We can quickly get feedbacks and easily validate the success or failure of a new idea.”

Citing an example of one of his recent ventures to provide a sales training programme for retail and food and beverages (F&B) personnels, he said after a quick check with potential clients on the ground, his team found out in less than a week that many wanted the course but were not willing to pay for it.

“This idea subsequently metamorphosised to become a digital marketing agency where we help our clients do search engine optimisation (SEO),” he said.

The venture, which is only three months old, has 15 clients comprising small and medium enterprises (SMEs).

Hirsch, who founded the Kuala Lumpur-based Mother Goose Venture Developer (MGVD) in early 2013, said he was solely interested in building businesses through his company which he described as a “venture builder platform” that brought people, ideas and resources together to build successful businesses.

The company has six active ventures at the moment, including Hijab2Go and Easy Read. Hijab2go is an e-commerce website specialising in women’s fashion brands, specifically traditional Muslim fashion, while Easy Read is a language education application that helps young adults and professionals learn new languages while reading content that is relevant to them.

“With so much of shared resources, it takes less than RM20,000 to start a new company within MGVD,” he said.
One of MGVD’s ventures, Ticket Hero, has also received a grant from Cradle Fund, an agency under the Ministry of Finance, which promotes early stage funding.

Ticket Hero is an event listing web and mobile application that helps Malaysians discover their city by listing all types of events including arts, cultural, nightlife and sports.

Hirsch, who started two Internet companies in his university days, said there were four categories of assistance available in the start-up community, namely the incubator, accelerator, venture capitalist (VC) and business builder.

“To assist a start-up is not as simple as giving them the funds and a strategy to work on. Hence, you encounter many VCs failing with that strategy. Those VCs that succeed will likely be attributed to the entrepreneurs in the start-up,” he said.

As a business builder, Hirsch, who is keen on the details of building a business, said MGVD used funds to build a business but did not disburse funds like a VC did.

“The No. 1 disease in the start-up community is talking about building companies and yet doing nothing about it. It is more hands-on where we are also involved in marketing and business development, beyond just being a service provider,” he said.

Planning to raise RM1.5mil within the start-up community this year, he said the group would start another 10 ventures within the next two years.

Adding that the group was looking for entrepreneur-in-residence, he said they would do all that was needed to get the business running to become profitable entities.

“We hope to attract more Malaysian entrepreneurs who are ready to lead a project and team. Our goal is to build as many successful businesses as possible and to help entrepreneurs to push themselves towards excellence,” he concluded.

Contributed by  Lim Wing Hooi The Star/Asia News Network

Related post:

The freelance generation

The freelance generation

Young people are finding typical nine-to-five office jobs less appealing, while companies are also realising the benefits of freelancers – more savings on office space and employee benefits.

Full-time jobs? Pfft. Who needs 'em when you can freelance at home in your jammies?

ONCE upon a time, it was only natural to seek and secure a stable job after you graduate, preferably with an established company where you can build your resume based on the reputation of the company.
But now, with the culture of the modern workforce, where demands are high and speed of work is essential, we are seeing the rise of “independent workers” – aka freelancers.

Malaysian Emoployers Federation executive director Shamsuddin Bardan said there has been a “rapid growth” in freelancing in Malaysia, especially with work that can be done online.

He said: “Freelancers have more freedom and flexibility. For some it is about following their passion and being their own boss, while at the same time earning some income.”

According to a PC.com article earlier this year, since Malaysians started using the Freelancer.com website in 2009, over 27,000 freelance jobs have been posted, and over US$851,000 earned by freelancers.

Most of the jobs originate from the Klang Valley, with Malaysian employers mainly hiring freelancers from South Asia. In line with the growth of ICT industries, the most popular projects are software architecture, MySQL and software testing.

The freelance generation

For graphic designer and videographer Zermi Ng, 25, being a freelancer had not only helped him become more productive, but also given him more free time.

“As a freelancer, I usually take about two to eight days to complete a film, and whatever time I have left is usually free for me to do what I want,” he said.

Ng said he could spend just a week to deliver a production and get the same monthly salary he would with a nine-to-five job with five days a week in the office. “The only problem is you might not get a job every month,” he said.

Shamsuddin said: “People who don’t want to be bound by the strict 9am to 5pm working hours would usually choose the freelancing path. But not all jobs can be done by freelancers.

“They usually are professions in the creative field like designers and copywriters, as well as IT or enginering professions.”

He pointed that more companies are now attracted to this new form of hiring and moving away from traditional employment.

The benefits for employers, he said, is they can “save on benefits and statutory payments” while maintaining a lean workforce and meeting bursts in demand.

“For example, a company who specialises in food and beverage will not need to hire a full-time web developer just to set up a website. In fact, the web developer doesn’t even need to show up to the office.

“By hiring full-time staff, there is space reduction, and more budget spent on benefits. If you hire a freelancer, it’s a win-win situation. Freelancers get the freedom they want and companies don’t need to spend on office space.”

According to Sam Haggar, the Malaysia country head of human resource consulting firm ManpowerGroup, freelancing is becoming a trend because more young people like the lifestyle that comes with it.

“The lifestyle of being able to be anywhere at any time while working is becoming more and more of a trend. There is also no geographical boundary when it comes to delivering their work.”

Fashion photographer Bibo Aswan, 24, started his freelance career in fashion photography and potraiture while studying in Form Two. Before he even graduated with his diploma in photography, he already had a handful of clients to start with.

Freelance fashion photographer Bibo Aswan hopes to work with a photography studio in the future to gain more professional experience and gain access to better equipment.

Even during his internship with a photography studio, he found that he preferred a more flexible working schedule. “I could actually continue to work with the studio full-time, but I chose not to. By freelancing, I don’t actually have to work everyday.”

A price to pay

It is important to note that there is a difference between freelance and part-time workers. Part-timers are employees who are entitled to all company benefits and social security like EPF and Socso, but with a lower level of commitment.

But of course, freelancers usually enjoy more freedom and flexibility. In the eyes of the law, however, they have very little leverage against their employers. And on top of that, their income is rarely as stable as that of a full-time or part-time employee.

“Freelancers are paid for their work but they have almost no benefits and have no rights of employment apart from a contract between the employer and the freelancer,” said Haggar.

According to Shamsuddin, there also have been cases where freelancers were scammed and cheated for their services. “There are ‘companies’ and ‘employers’ out there targeting freelancers. They ask for your services and then disappear without giving you payment.”

Shamsuddin said freelancers ought to be careful in dealing with their employers as they might encounter bogus companies or scams. It is vital for a freelancer to request for a civil contract, and also to check the employer and company’s background before committing to a job.

Through both freelancing and working as an employee, filmmaker Joshua Chay, 27, discovered what he wanted to achieve in his career.

Filmmaker Joshua Chay took his freelance career to the next level by starting his own production company called The Spacemen.

“I didn’t see myself working for a company because I wanted to be my own person. In that way I’m able to produce the kind of work I like and I’m passionate about,” said Chay.

Although Chay pursued a freelance career in filmmaking, he was working with many types of clients – including some he didn’t particularly enjoy working with.

“The biggest thing about my freelance career was that it was growing, and fast. But through the jobs, I realised what kind of work I didn’t want to do. So from there, I began to pick my clients and produce the type of work I enjoy and am actually good at,” said Chay.

Haggar added: “That’s one of the great advantages freelancers have – they get to choose their clients and enjoy their work.”

The path to entrepreneurship

Eventually, freelancing became a stepping stone for Chay to venture into something bigger – starting his very own company. He realised the importance of expanding his services, as well as presenting a higher credibility to clients, which is why he founded his own company, The Spacemen, with two other friends.

Ng had also taken steps to expand his services by starting his own company, Mime Studio. “Starting a company will attract more clients, and it makes it easier for us to convince them,” he said.

But on the flipside, despite the liberty freelancers have, Haggar said they often lose out on the mentorship you get from having a superior, and learning from other colleagues. “This form of working may cause young freelancers to be less business-savvy and structured, because they are without guidance.”

Because of this, Bibo plans to work with a professional photography studio in the near future. “I want to do that so I can learn the business side of things. Plus, a professional studeio would also have better resources, like proper production equipment.”

That’s one of the reasons why Chay spent around three years freelancing before he started his own company. He wanted to learn everything from scratch, from the top to the bottom of the production industry.

“Because I started out doing everything on my own, I had to learn everything. And I realised after a while that starting a company was the right move. Multi-national companies may not work with freelancers, but they might if you’re a legit company,” he said.

Freelancers may have the liberty to work when, where and how they want,but they lose out on full-time benefits and social security.

Contributed by  by Kevin Tan The Star/Asia News Network

Malaysia's property market to take a breather in 2014 and 2015

PETALING JAYA: The property market might need at least two years to digest and recover from the various cooling measures that came into effect this month, but expect it to surge again in 2016, say industry officials.

According to Malaysian Institute of Estate Agents president Siva Shanker, 2014 is expected to be a tough year for sales, but the market will find its footing next year and catch the next upcycle in 2016.

“The market ground to a standstill after Budget 2014. There was a knee-jerk reaction in sales.

“It will probably stay in the doldrums for the first half of 2014. The second half may be better,” Shanker, who is also CEO-Agency of property consultancy PPC International Sdn Bhd, told StarBiz by phone.

Shanker believes that speculation over the past few years in the primary market, resulting in “far more properties bought than needed”, had been put to a stop by the new curbs.

“The days of 20%-40% appreciation in property prices after only a few years is over, ” he said.

Even so, Shanker sees the secondary market, which he said had languished for years, regaining its lustre.

“A new launch in Bangsar could set you back RM1,500 per sq ft, compared to RM800-RM1,000 per sq ft for an existing property. The discount goes up to 50% in some prime areas,” he said.

An analyst with TA Research said that unlike previous years, many listed developers have held back on their 2014 sales targets – a departure from their usual forward guidance in December – until a clearer picture emerges from the effects of Budget 2014 and other tightening measures.

The exception is Mah Sing Group Bhd, which is aiming for a 20% increase in sales this year to RM3.6bil.

According to the analyst, policy uncertainty on several fronts – such as whether Iskandar Malaysia’s Medini is exempt from real property gains tax, or the pricing of bank loans using the net selling price of a property – remains an overhang on the market.

“The sector’s fundamentals are intact, but in terms of share prices, the catalysts are lacking,” she said.
Property players have noticed a marked slowdown in sales since the various curbs were put in place, although it is unclear by how much.

A number of high-end launches were also shelved, as developers switch their focus to the affordable segment of the market, where demand is more resilient.

Some of the projects launched post-Budget 2014 include block B of YTL Land & Development Bhd’s Fennel@Sentul East condominiums, which saw a take-up of 80% soon after it was opened for sale in mid-November, while tower A and B of Sunway Bhd’s Geo Residences were 85% sold within two weeks, HwangDBS Vickers Research noted.

In Iskandar Malaysia, however, the response to UEM Sunrise Bhd’s Almas Suites and WCT Holdings Bhd’s Medini Signature Tower 2 have been lukewarm, Maybank Research said in a report last week.

The brokerage’s only “buy” call is Glomac Bhd, even though the firm has cut its own sales target for the year ending April 30, 2014 by 18%.

CIMB Research is more upbeat. It expects buying interest to return in the first half of this year, albeit gradually, when potential homeowners realise that prices are unlikely to fall, and that inflationary pressure from the impending goods and services tax, along with other subsidy cuts, leads to higher prices.

“As these macro prudential and policy measures are meant to curb speculation and not restrain genuine demand, the impact (though negative in the short term) should be positive over the longer run because they should help to remove froth from some segments of the market.

“Also, affordability remains close to its highest ever. Robust sales by developers should provide impetus for a re-rating of property stocks,” the research house told clients earlier this month.

Hong Leong Investment Bank Research, which believes the market will stage a recovery in the second half of the year, advocates a buy-on-weakness strategy for shares amid trough valuations.

Contributed by John Loh The Star/Asia News Network

TPPA negotiations hot up in early 2014

Due to the United States political calendar and congressional politics, the TPPA negotiations will heat up the first few months of the new year. 

ONE of the major developments in the new year will be the negotiations and in fact the fate of the Trans Pacific Partnership Agreement (TPPA), which has stirred a lot of interest and controversy not only in Malaysia but also in the United States, whose government is its prime mover.

The first half of 2014 will be decisive because the US will hold mid-term congressional elections in November, and that nation’s attention will focus on that after mid-year.

Since free trade agreements are so controversial and in fact unpopular among the public in that country, the TPPA and other FTAs will be hard for the US president and his administration to champion near the election period.

This may explain why the US is in such a hurry to finish the TPPA negotiations as soon as possible. It had placed a deadline of end of 2013, but that has passed without success.
Indeed, the ministerial meeting in Singapore in the first half of December revealed many outstanding differences.

So, the negotiations will become even more intense in the next few months, with a possible ministerial meeting in February.

Malaysia is one of the significant countries that have raised several concerns about the proposals by the US.

Prime Minister Datuk Seri Najib Tun Razak himself, at a meeting in Bali last October, highlighted government procurement, state owned enterprises, investor-state dispute system and intellectual property as some of the issues that may infringe on sovereignty, implying that there should be careful consideration and caution during negotiations.

The US Trade Representative Michael Froman visited Malaysia a number of times to meet with some ministers and parliamentarians. He reportedly assured them of the United States’ understanding of Malaysia’s concerns, which he implied would be taken into account.

Malaysians are thus waiting to see how much flexibility will be given to accommodate the concerns of the public and the Government.

For instance, Malaysia formally proposed a comprehensive “carve-out” (exclusion from disciplines in the TPPA chapters) for tobacco control measures, a move that was advocated by health groups and the Health Ministry, and which has won warm congratulations from the public and media around the world, including in a New York Times editorial.

According to media reports, Malaysia has also opposed proposals for tight intellectual property rules that for instance extend the present terms for patents for medicines and asked for high thresholds for government procurement, and exemption for its bumiputra policies, while also challenging the proposed disciplines on state owned enterprises and the investor-state dispute system.

On goods market access, Malaysia will also find difficulties with the proposed ban on export duties. Recently the association of palm oil refining companies warned that their operations would be threatened if the TPPA forces the country to abolish its long-standing export tax on crude palm oil.

A ban would also cause the Government to lose around RM2bil annually in revenue, which would be a serious blow to efforts to reduce the budget deficit.

The question is whether Malaysia’s demands will be met. Even if compromise or flexibility is offered, it is crucial to examine how genuine or adequate they are. Often, the only “flexibility” is a longer period granted to implement the specific rule in question. That is not really much use.

Even if an exemption is given, it may be limited or useless. For example, in an early version of the investment chapter, available on the Internet, there is a clause that nothing in the chapter prevents the countries from undertaking health and environmental policies. But it also says provided those policies are consistent with the chapter, thereby negating the apparent space provided for exclusion.

Thus the devil is really in the details, as the saying goes. And the details have to be carefully scrutinised, because it is an old negotiating tactic to show a spirit of understanding and compromise politically but remain steadfast and uncompromising in the legal texts, and it is the latter that counts.

Another key point is that the US negotiators and government have little room to provide compromises, even if they want to. That is because it is the congress that has the real power over trade matters, including the TPPA.

Last week, some members of Congress introduced a Bill to provide the US President with fast-track authority, which means that a trade agreement like the TPPA can only be adopted or rejected by congress, but cannot be amended by it.

Without this fast-track authority, there is no confidence among other countries that what the US negotiators agree to or sign will be agreed to by congress, which can reject certain parts of the TPPA and demand changes.

As a condition for giving the fast-track authority, advocates are asking the US government to take a strong stand on issues.

This puts pressure on the US negotiators not to compromise, even if they wanted to.

For example, the Bill says that on state owned enterprises the US should seek commitments that eliminate unfair competition favouring SOEs doing commercial activity and ensure that their practices are based solely on commercial considerations.

Government policies and the SOE practices would have to abide by eliminating discrimination and market-distorting subsidies.

The US is already proposing that SOEs cannot discriminate when they buy and sell goods and services, and that they cannot receive any advantages such as cheaper loans or land and business from the government.

This would, for instance, imply SOEs being prohibited from giving preferences for bumiputra companies in their procurement.

If the definition of SOEs also include private companies in which government agencies have a share, the net will be cast very wide.

It is however still unlikely that the proposed Bill will pass, as many Democrats are opposed to fast track and some Republicans just don’t want to give President Obama anything he wants.

But here’s the problem. If fast track is given with the conditions attached, the US negotiators will have to abide by them and can’t show required flexibilities. If there is no fast track, the proposed texts agreed to by the US can more easily be rejected by congress.

Either way, there is only so much the negotiators can give in response to demands made by Malaysia or other countries, and even then the compromises can be rejected by congress.

Which goes to show how difficult FTAs are to negotiate or conclude when the US is involved, for commerce and politics are all mixed up in the pot.

Global Trends by Martin Khor

Related posts:
1. Winds of change blowing in Asia
2. Looming danger on contrast and competition of economic models
3. An eventful week on the TPPA
4. TPP affecting health policies?
5. ASEAN plans world's largest trading bloc in Asia, RCEP ...

Singapore may tighten finance rules, monitoring new forms of illicit financing

Move to curb money laundering, terror financing activities

The Monetary Authority of Singapore may step up regulations to curb money laundering and terrorism financing risks posed by remittance agents, money changers and some Internet-based payment systems. 

Controls on pawnbrokers and corporate service providers such as lawyers and accountants can also be improved, according to a government risk study released today. Singapore authorities are closely monitoring virtual currencies such as Bitcoins that may be used for illegal activities and will consider regulation if needed, according to the report.

“Singapore’s openness as an international transport hub and financial center exposes it to inherent cross-border” money laundering or terrorism financing risks, according to the study. MAS “has put in place a robust preventive regime. Nonetheless, there are areas for further enhancement.”

The risk assessment study comes seven weeks after Singapore police and the bank association urged residents to be wary of fraudsters seeking to use their bank accounts to funnel illegal funds after an increase of reported cases last year.

Remittance agents, who accept funds for transfer to individuals outside Singapore, and money changers operate in “cash-intensive” industries and offer greater risks of money laundering or terrorism financing, according to report.

Total outward remittance from Singapore amounted to S$24.1 billion ($19 billion) in 2012, while inward remittances were S$995 million, the government said in the study. Volumes in the money-changing business that year were S$36.8 billion. The implementation of controls in these industries isn’t as robust as in banks and MAS will ensure “enforcement efforts are further stepped up,” according to the report.

More Powers 

The pawnbroking industry had total loans outstanding at over S$1 billion in 2012, the study showed. The number of pawn shops in the city increased to 191 that year from 114 in 2008.

MAS is also considering additional supervisory powers and requirements to bolster “nascent” money laundering and terrorism financing controls for Internet payment companies such as PayPal Inc. or Alibaba Group Holding Ltd.’s Alipay.

Agencies involved in the study included MAS, the customs bureau, the casino regulator, the finance, home affairs and law ministries, and the Accounting and Corporate Regulatory Authority.

Accountants and other corporate service providers can be exposed to money laundering and terrorist financing activities if higher-risk customers hire them to set up complex structures that conceal ownership and reduce the transparency of transactions, according to the study.

Tax Evasion 

Singapore’s central bank is stepping up its anti-money laundering rules in line with global regulations following U.S. authorities’ investigation of several Swiss banks for their dealings on behalf of American clients. MAS made it a crime last July for clients to use financial institutions to evade tax.

UBS (UBSN) AG and Credit Suisse Group AG, Switzerland’s largest banks, are among firms implicated in a U.S. crackdown since 2008 on offshore tax evasion that led to charges against about 70 American taxpayers and 30 bankers, lawyers and advisers.

The U.S. charged UBS in 2009 with aiding tax evasion by thousands of American clients. The Zurich-based bank avoided prosecution by paying a $780 million penalty, admitting it fostered tax evasion and agreeing to hand over data on client accounts to U.S. tax officials.

Private Banking 

Risks for private banks operating in Singapore are lower than those for full banks because they have fewer clients, less physical cash transactions and more checks when customers open accounts, according to today’s report. Singapore is Asia’s largest private banking center with offshore assets of about $800 billion, Boston Consulting Group data show as of September.

In Singapore, the number of reported cases of illegitimate cash being given to so-called money mules to hand over to a third party increased to 133 in the first nine months of last year, up from 93 for all of 2012, local police, the bank association and the National Crime Prevention Council said in November. The amount of illegal monies in those cases fell to S$15.5 million from 2012’s S$24.6 million.

- Contributed by Darren Boey in Hong Kong at dboey@bloomberg.net; Sanat Vallikappen in Singapore at vallikappen@bloomberg.net

Singapore monitoring new forms of illicit financing

Asian financial hub Singapore on Friday said it was scrutinising trade in virtual currencies such as Bitcoin as well as precious stones and metals to forestall new forms of illicit financing by criminals and terrorists.

In an inaugural report on money laundering and terrorist financing risks, the city-state said these sectors were identified for further study "as technology evolves and criminals become more sophisticated".

"Authorities will seek to better understand how money laundering and terrorist financing can be carried out through these channels," said the joint report by the finance and home affairs ministries as well as the Monetary Authority of Singapore (MAS).

It said the government would "review international best practices, to determine whether any safeguards and mitigating measures are needed".

The report said virtual money and precious metal-backed currencies carry the risk of being abused due to their anonymity, cross-border nature and low transaction costs.

The MAS, which serves as the city-state's central bank, "is closely monitoring developments in this area and will consider the need for regulation if necessary", the report said.

Bitcoin, the world's most popular form of electronic money, made headlines last year when US authorities closed the Silk Road website when it was found the currency was being used to buy illegal drugs, forged documents, hacker tools and even the services of hitmen.

The report also said Singapore was monitoring the trade in precious stones and metals.

"There are international typologies on the use of precious stones and metals as a tool to launder money, particularly as a store-of-value to move illicit proceeds easily," it added.

The bank said of 22 sectors that were assessed, the city's vast financial sector remained among the most vulnerable to abuse owing to the large number of transactions that take place and its wide international reach.

Singapore houses the regional offices of some of the world's top financial institutions and its total assets under management are now around Sg$1.4 trillion ($1.02 trillion), according to the MAS.

The report said "relevant controls are in place" for financial institutions, including supervision by MAS, record keeping, transaction monitoring and rigorous customer due diligence measures.

It identified remittance agents, money-changers, Internet-based stored value facility holders, pawnbrokers as well as corporate service providers as sectors where "controls are relatively less robust".

"Relevant government agencies will be strengthening the legislative and supervisory framework through the year to address the risks in these sectors more effectively," it said.

"The possibility that terrorist elements may seek to direct funds from abroad to support terrorism activities in Singapore or use Singapore as a conduit for foreign (terrorist financing) cannot be discounted," the report said.

Singapore in 2001 said it crippled a cell of the Southeast Asia-based militant network Jemaah Islamiyah with the arrest of suspects linked to an alleged plot to bomb local and foreign targets including Changi Airport.

Officials say the island republic is a prime target for extremist groups because of its close ties with the United States and major role in global finance and business.- AFP

Internet addiction taking toll on health !

Internet addiction has become a new threat to healthy living for Malaysians, depriving them of sleep and exercise, a survey by a global insurance group has found.

A whopping 73% of Malaysian adults who took part in the 2013 AIA Healthy Living Index survey admitted that their online activities and social networking were getting addictive, putting the country a­­mongst those with the highest addiction rates in the Asia-Pacific region.

The poll by AIA Group covered over 10,000 adults in 15 Asia Pacific markets.

Of some 900 Malaysian respondents, 81% stated that spending time online prevented them from getting enough exercise or sleep while 80% claimed that their posture was affected.

The survey noted that this addictive trend would continue to be fuelled by children growing up with the Internet as an integral part of their lives.

On healthy living, 67% of adults in Malaysia felt that their health was not as good as it was five years ago.
Overall, Malaysia scored 61 out of 100 points in the survey.

Malaysia also fared poorly in the area of healthy habits, with 32% of adults admitting that they did not exercise regularly.

On average, Malaysians spent only 2.5 hours on exercise a week, below the regional average of three hours and below the ideal recommended by most experts.

Sufficient sleep was rated the most important driver of healthy living in Malaysia and the region.

While adults in Malaysia desired eight hours of sleep, they only had 6.4 hours on average, leading to a sleep gap of 1.6 hours, the third highest in the region.

Spending time online was listed as one of the causes of this sleep deprivation.

The survey mentioned that these not very positive health habits were aggravated by a preference for sedentary ways to relieve stress, such as watching TV or movies, playing computer or mobile games and spending time online.

Spending time with family and children or friends was also a popular way to de-stress for Malaysians.

Meanwhile, healthy food habits were still limited to the basics of drinking more water as well as eating more fruits and vegetables, although 56% of Malaysian adults were also trying to eat less sweets and snacks.

There was also much concern about obesity – 64% of Malaysian adults said they wanted to lose weight, above the regional average of 53%. Further, 93% agreed that obesity among younger people was a worrying trend.

Cancer, heart disease and being overweight were the top health concerns in Malaysia, with the former two being above regional averages.

Despite these concerns, only 50% of Malaysian adults had medical check-ups in the past 12 months.

The study found that 89% of adults in Malaysia felt that employers should help employees live a healthy lifestyle, mainly by providing free health checks, not subjecting em­­ployees to undue stress and ensuring workloads were not excessive.

AIA Bhd chief executive officer Bill Lisle said the company was committed to helping Malaysians live longer and healthier lives.

“Through this extensive survey, we are keen to identify and enhance awareness of the key trends that impact the health of adults so we can actively work with the community and our customers to promote more positive attitudes.”

Contributed  by Lim Ai Lee The Star/Asia News Network

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