Singaporeans least, Malaysia more, among likely to worry about housing: survey


Singapore has emerged last in the latest Gallup poll of 128 countries on unaffordable housing, local media reported Friday.

The global survey by polling agency Gallup covered 1,000 or more respondents in each country, and only 1 percent of Singaporeans said there had been times over the past 12 months when they did not have enough money to provide adequate shelter for themselves and their families.

Denmark was the second last at 2 percent.

In contrast, Azebaijan, Liberia and Chad, which were in the top three places, had results of 76, 53 and 51 percent, respectively.

Among other countries in Asia, Malaysia had 14 percent of its population worrying about affordable housing and Japan had 9 percent.

Gallup had conducted the poll by telephone or face-to-face interviews over last year and this year.

Singapore has been known for its policy of relying on government efforts to provide affordable housing for its population. About 80 percent of the population in the small open economy live in homes developed by the government.

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5 Cyberthreats to Watch For in 2011


By Matt Liebowitz, SecurityNewsDaily Staff Writer

Keywords like phishing, hacking and malware have become part of the common cybersecurity discourse, familiar to nearly everyone with a computer and an Internet connection. But as we embark on a new year, and our online connectivity increases, there’s a new batch of terms even the most casual computer user should be aware of.

SecurityNewsDaily looked back at the dangers that shocked and scared in 2010, and spoke with cybersecurity experts to get a grip on what threats will emerge in 2011.

Hacktivism

In the second half of 2010, no single topic dominated cybersecurity news more than WikiLeaks. From the initial document leak to the subsequent denial-of-service attacks launched against PayPal, Amazon, MasterCard and Visa, even the least tech-savvy person seemed to have an opinion about WikiLeaks and its founder, Julian Assange.

In a report titled “Distributed Denial of Service Attacks Against Independent Media and Human Rights Sites,” researchers at Harvard University found that several high-profile media and human rights websites fell victim to DDoS attacks in 2010.

Those attacked included blogging platform WordPress, Twitter, and websites for Australian Parliament, the Motion Picture Association of America and the Recording Industry Association of America. The latter two were all struck by the online forum 4Chan for their connection with shutting down the file-sharing service The Pirate Bay. And PayPal and MasterCard were targeted for DDoS attacks in December because they cut off customers from sending money to WikiLeaks).

Security breaches like these have been labeled “hacktivism” — they are not carried out for financial gain, but because the hackers disagree with the objectives or practices of the targeted sites. Hacktivism attacks such as these are “the future of cyber protests,” PandaLabs researcher Sean-Paul Correll said.

Gadgets and Smartphones

Smartphones and tablet computers give their owners the freedom to stay connected wherever they go. It’s a feature that cybercriminals couldn’t be happier about.

Mobile devices may offer unsuspected vectors for malicious code,” said Don Jackson, director of threat intelligence for the cybersecurity company SecureWorks.

A vector that poses perhaps the most serious threat is online banking transactions done via phone, especially on the iPhone and its iOS.

Patricia Titus, vice president and chief information security officer at Unisys, an information technology firm, summed up the situation.

“Where the money is, that’s where the criminals are going,” Titus told SecurityNewsDaily.

Unfortunately, the adage of safety in numbers doesn’t ring true in the case of cybersecurity.

The massive popularity of the iPhone and other devices running iOS like the iPad mean “the iPhone and the many services hosted on these devices certainly become a more valuable and sought-after target,” said Kurt Baumgartner, senior malware researcher at Kaspersky Lab.

Even Internet-connected gaming systems such as the Xbox aren’t invulnerable to corruption, Jackson told SecurityNewsDaily. Any device, especially those with USB-storage capabilities, can be employed by criminals to access information or infect systems with corrupted software.

The Cloud

It’s up there, floating above you. It’s adding a huge level of convenience to everyday computing, with remote servers handling processing and data storage duties traditionally conducted by personal computers.

But the forecast could turn gloomy.

A piece of malware was recently detected in the cloud-based file-sharing service Rapidshare (www.rapidshare.com). The malware, called Trojan-Dropper.Win32.Drooptroop.jpa worried Kaspersky Lab researcher Vicente Diaz because it didn’t appear in the body of the Rapidshare link, and therefore was able to evade traditional security filters.

As more and more companies move their programming duties to these vast remote servers, analysts believe cybercriminals will adapt to the new landscape and develop methods of compromising data in the cloud.

Social Engineering

In December, a social engineering scam spread virally through Twitter, tricking users into believing they had a computer virus, and then persuading them to download antivirus software. Credit: Sophos.com

It’s not entirely new, but social engineering attacks – scams that use psychological manipulation to persuade people to divulge sensitive information or to purchase fake antivirus software — will continue to be a threat in 2011. Again, it’s a case of danger in numbers.

Those numbers hover somewhere around 500 million, which is the amount of people who use Facebook. Social engineering attacks thrive on Facebook and Twitter because of the enormous pool of potential victims, many of whom are maintaining a constant Facebook connection on their smartphones.

The Nigerian fraud scam is an example of a social engineering attack – the e-mails promised a large sum of money would be sent to people who wired the scammers a small “advance fee,” usually through Western Union.

“Variations on the Nigerian scam continue to exist and work, which seems ridiculous to talk about, but they are ongoing,” said Kaspersky Lab’s Baumgartner. “Social networking delivery and social networking related threats, like those abusing Twitter trends, Google’s hot topics and using Facebook and MySpace to deliver links and malware will continue.”

Looking forward to 2011, Baumgartner added that social engineering attacks have become “more convincing, more anonymous, more international and more professionally done.”

A contributing factor to the dangerous efficiency of social engineering attacks is the URL shortener, a program – there are several, including bit.ly and tinyurl.com – that condense long website addresses to better fit the character limits in Twitter and Facebook messages. URL shorteners are seen as dangerous in the cybersecurity world because attackers can use the shortened address to hide malware.

In late December, a computer science student named Ben Schmidt took the URL-shortener danger a step further, when, as a proof-of-concept experiment, he designed what he called the “Evil URL Shortener,” which not only condensed the Web address, but simultaneously launched a DDoS attack against the website of the user’s choice.

“A malicious shortener could essentially take you anywhere it pleased, and the user would be none the wiser,” Schmidt said.

Stuxnet

First detected in June, the Stuxnet computer worm became a hot topic in 2010 – and will continue to be in 2011 – because it upped the ante of what malware can do on a global level.

Stuxnet, a piece of malware that targets computers running Siemens software used in industrial control systems, was found to be deployed to attack Iran’s Bushehr nuclear power plant.

The fact that this malware was sent, presumable by a nation-state as opposed to an individual criminal, heralded a dangerous new landscape of global cyberwarfare, one that researchers believe will continue into 2011.

Similarly, January’s “Aurora” attack launched by China against Google and 34 other high-profile companies, was of such a sophisticated nature that “it’s totally changing the threat model,” said Dmitri Alperovitch, vice president of threat research for McAfee.

As protesters flex their digital muscles, companies seek to increase their productivity by looking to the clouds, and Facebook continues its reign of social supremacy, 2011 could be a banner year for cybersecurity. Who will be holding the pennant is anyone’s guess.

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The New Asian Hemisphere


Kishore Mahbubani was appointed Dean of the Lee Kuan Yew School of Public Policy on August 16, 2004 after having served 33 years in the Singapore Foreign Service.

The New Asian Hemisphere: the Irresistible Shift of Global Power to the East, was published in 2008. The premise of this book is simple: If representative democracy is the best known form of governmance for nations, then it’s also the best form for the world. His book sends one message to the West: Please give up in dominating the world.His new book, 

The New Asian Hemisphere Video >>

Moderator: Yang Rui

Moderator: Yang Rui

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In law, West is not really best


While most of our law books draw from ‘wisdom’ from the West, there is much about jurisprudence to be learnt from the great Asian civilisations.

WITH the end of the year drawing nigh, thoughts turn to the state of legal education in this country.

Many advances have been made since the inception of the first local law programme at the University of Malaya in 1972. However, some debilitating drawbacks remain. Legal education in this country is too profession-oriented and not sufficiently people-oriented.

It is text-book based rather than experience-based. It is too West-centric. Only the last issue will be addressed in this article.

Course content: Despite 38 years of experimentation, the structure and content of our courses, the choice of core subjects, the categories of thought, the fundamentals, the methods of analysis and research, the history of each subject, the books and the icons all remain Western.

Legal education today is as much a colonial construct as it was during the days of the raj.

Yusef Progler points out that most university courses in Asia follow a similar trajectory. We first identify the great white European or American men of each discipline and then drill their theories and practices as if these were universal.

Centuries of enlightenment in Japan, China, India, Persia and the Middle East is totally ignored.

It is as if all things good and wholesome and all great ideas originated in the crucible of Western civilisation and the East was, and is, an intellectual desert.

> Jurisprudence: In legal philosophy, for example, a book on American or English legal thought is referred to as “jurisprudence”. In contrast, a book on Islamic, Chinese or Hindu legal thought is described with the prefix “Islamic”, “Chinese” or “Hindu” jurisprudence. The assumption is that Western ideas are universal whereas ours are merely parochial.

A typical course on jurisprudence in a Malaysian university begins with Plato, Aristotle, Locke, Austin, Bentham, Hart, Kelsen, Pound, Weber, Ehrlich, Durkheim, Marx, Olivecrona etc.

Titles written by scholars and thinkers from Asia, South America and Africa are nowhere to be found.

The Mahabharata, the Arthashastra, the Book of Mencius, Analects of Confucius and the treatises of Ibn Khaldun, Ghazali, Ibn Rushd, Mulla Sadra, Jose Rizal, Benoy Kumar Sarkar, Yanagita Kunio and Naquib al-Attas do not appear in our syllabi.

In Austinian fashion, the concept of law is tied to the commands of the political sovereign even though most Asians and Africans feel the pull of religion and custom and regard them as part of the majestic network and seamless web of the law.

> Categories of law: The rigid compartmentalisation of knowledge developed in Europe in the 19th century is preserved. As in the West, we separate law from morality, public law from private law and crime from tort even though such artificial dichotomies are alien to our traditions and are often impediments to justice.

In most Asian and Middle Eastern systems, morality is legalised and legality is moralised. The law of crime is also the law of tort. Law relating to rights and duties applies equally in public and private spheres. Such a holistic approach has positive implications for human rights.

> Public law: Generations of students are uncritically led to believe that the seeds of constitutional and administrative law were planted in Europe and North America by such historical documents as the Magna Carta 1215, Declaration of the Rights of Man and the Citizen 1789 and the United States Declaration of Independence 1776.

What is ignored is that the ideas of limited government and constitutionalism were born in the religious doctrines of the East.

Taking Islam as an example, we can point to the fact that the denial of state sovereignty in Islamic jurisprudence preceded Locke’s and Rousseau’s idea of the limits on state sovereignty by hundreds of years.

The idea of government as a trustee is mentioned in the Holy Qur’an (4:58). The citizen’s duty to obey the law is conditional to the duty of the ruler to obey the Creator.

Locke and Rousseau, Gandhi and Martin Luther King built on this idea to propound the theory of civil disobedience.

In Islamic theory, political as well as socio-economic rights are given legitimacy.

Prophet Muhammad’s sermon at Arafat is one of the world’s greatest human rights declarations. More than 1,400 years ago he spoke about liberty and property, racial equality, women’s rights and the ruler’s subjection to the law.

If his words had been uttered by some Western luminary, they would have adorned the walls of law schools all over the world.

In the Islamic criminal process there is a legal presumption of innocence. Evidence of agents provocateur cannot be used. Religious tolerance is required and pluralism is permitted (2:256, 109:1-6, 10:99). The concept of shura (3:159) or consultation paves the way for a whole regime of consultative processes.

Modern principles of administrative law like natural justice and proportionality have their basis in the Holy Qur’an.

The ombudsman principle attributed to the genius of the Scandinavians was known to Islam through the system of Hisba, the office of the Muhtasib and the existence of Mazalim courts.

Islam’s concept of the universal ummah is in line with the process of globalisation and the growing movement for international citizenship.

The subject of alternative dispute resolution parrots a discourse on arbitration, conciliation and mediation and ignores many indigenous or informal institutions and procedures for resolving discord that existed in our history and can be revived.

The course on Law and Economics studies emerging international protocols but not the clear injunctions in Islam, Christianity, Hinduism and Buddhism on environmental and consumer responsibility.

> International law: The syllabi of public international law courses fail to mention that long before modern humanitarian law built protection for civilians, non-combatants and prisoners of war, many Eastern systems like Islamic international law had already worked out a set of principles for the conduct of war.

Some of these principles exceed the standards of the venerated Geneva Conventions.

Sadly, Malaysian as well as Asian legal education fails to recognise that many of the law’s crowning glories actually originated in the East. Obviously colonialism has left its indelible mark.

> Call for action: There should, therefore, be a concerted effort to re-educate colonised minds; to revisit our syllabi; to substitute imported mental baggage with our own treasury of thoughts.

This indigenisation of our syllabi is not meant to shut out the West but to give to our students a bigger picture of knowledge and to increase their choices.

In the background of pervasive Western intellectual domination, indigenisation would assist a genuine globalisation!

Academic Boards of Faculties, University Senates and accreditation authorities may wish to go beyond form to the actual content of our syllabi and to insist that our garlands of knowledge must be built with flowers from both Eastern and Western gardens.

A helpful site for some Third World titles is http://www.multiworld.org. There is no dearth of scholars from the South who could be co-opted to advise us on how to tackle the problem of educational enslavement.

The author wishes all readers the blessings of the season and a Happy Gregorian New Year.

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A positive surprise from Malaysia?


M’sia may turn out to be the biggest economic surprise in Asia

Singular Vision – By Teoh Kok Lin

MALAYSIA is blessed. We sit on a great location in Asia; in a geographically peaceful, fertile land with abundant natural resources.

We are a multi-cultural, multi-lingual and multi-talented nation. We have a well-trained workforce and also modern infrastructure in place. We also know there is an urgent need to quickly improve existing infrastructure; such as with better mass rapid transit in Kuala Lumpur, faster Internet broadband across the country and an improving education system for the population, among others.

Malaysia’s good economic prospect was never in question; it is how Malaysia goes about fulfilling its good potential that has been in doubt.

Today, in general, expectations for Malaysia to outperform economically are not that high however, I personally feel Malaysia could potentially spring the biggest economic surprise in Asia.

Here are four reasons why:

First and second are closely linked. I believe the country’s governance and economy could potentially improve substantially with both the Government Transformation Plan (GTP) and Economic Transformation Programme (ETP) now off the ground and running. While their successful implementation depends critically on political will and the determination of all Malaysians to work together, there has been gathering momentum and some early signs of success.

In the GTP for example, efforts to improve urban transportation quickly transformed into decisions to invest an estimated RM36bil in the mass rapid transit (MRT) system for “Greater KL” which is scheduled to start work by July 2011.

If completed successfully with an open tender system and full transparency as proposed, it will also speak volumes for good governance.

Similarly, reducing crimes and fighting corruption are two areas of GTP showing early results. Pemandu and the Home Ministry said in December that street crimes in the country were down by almost 40%, with certain parts of KL experiencing 47% reduction. The Government plans to continue rolling out new initiatives for crime prevention next year.

And in fighting corruption, we see many more prominent corruption cases being bought up to the courts this year.

Second, under ETP, both the New Economic Model and National Key Economic Areas crucially focus on lifting working Malaysians to a higher income level by attracting best-of-the best industries to operate in Malaysia creating high quality employment and income.

This model is to help get us out of the “middle income trap”. Malaysia needs to move up the value chain as China, India, Indonesia and Vietnam have been out-competing us in our traditional areas of expertise in labour intensive and other export and contract manufacturing industries.

Wages and employment income of a nation’s working population is the real measure of a nation’s wealth. It is therefore more critical to create higher income jobs, professions and enterprises as a means to address any social inequality.

To quote the New Economic Model concluding part (Dec 3, 2010) executive summary chapter six, “After all, before wealth is to be distributed it must first be sustainably generated”. It is hoped that the focus will be on expanding the economic pie rather than how to split an existing pie.

Third, while liberalisation increases competition domestically, it also encourages Malaysian companies to venture out and become regional champions. Khazanah, for example, has been fairly successful at transforming Malaysia’s government-linked companies into regional champions such as with CIMB and Axiata.

There are many factors to Khazanah’s success but one key secret I believe is that for many years, Khazanah has been hiring and paying for top talents from the financial, consulting and banking industries both locally and from abroad.

I personally have visited successful Khazanah-owned companies such as CIMB Niaga, the Indonesian subsidiaries of CIMB and XL, the Indonesian subsidiary of Axiata. A common thread I noticed is they are well integrated with local culture, they hire the best talents and they are meritocracy-based.

Meritocracy is also part of the foundation for a civil society where talents can come from any nation and be any race, all working to attain high level of accomplishments.

Finally, Malaysia is again fortunate to be a trading nation sitting in the middle of an economically-vibrant Asia. To our right is India, a market with one billion population and an economy that is just starting to take off after more than 10 years of reforms; to the far north of us sits China, the second-largest economy in the world with 1.3 billion people and the new economic engine of the world; and to the south of us lies Indonesia, 300 million strong of increasingly vibrant and wealthier consumers.

Malaysia enjoys good relations with all these major economies and should take full advantage of many economic opportunities in these coming years.

With China for example, Malaysia is not only one of China’s largest trading partners (total trade was about US$52bil in 2009) but China is now increasingly funding Malaysian infrastructure projects such as for the Second Penang Bridge (US$800mil) and likely more projects in the future.

The potential inflows of large direct investments from China and other Asian countries can also be a very important component to boost our economic growth.

What we do with our advantages and opportunities will determine if we are a successful nation or not. I personally think Malaysia’s government today is getting some of our priorities right in theory with these transformation programmes, I hope we put these plans into good practice.

Some direct or portfolio investors may still be sceptical but the increasing contributions by these programmes to Malaysia’s economic growth are quite clear to me. In addition, good governance will attract more talents and investors to our shores, and will likely give an added boost to Malaysia’s capital and equity markets.

I, for one, am certainly more optimistic and hopeful than before.

Teoh Kok Lin is the founder and chief investment officer of Singular Asset Management Sdn Bhd

Lehman ‘prophet’ fears second crisis


Lehman ‘prophet’ fears second crisis if US interest rates are kept low, risks falling into debt trap

America is storing up a second financial crisis by keeping interest rates at record low levels, according to David Einhorn, the hedge fund manager who first publicly warned about the financial catastrophe facing Lehman Brothers.

America is storing up a second financial crisis by keeping interest rates at record low levels, according to the hedge fund manager who first publicly warned about the financial catastrophe facing Lehman Brothers.

David Einhorn said the US risks over-borrowing and falling into a ‘debt trap’.
Richard Blackden

By Richard Blackden, US Business Editor 6:30AM GMT 26 Dec 2010

“The crisis that required zero interest rates has passed,” said Mr Einhorn, who co-founded and runs Greenlight Capital, a $6.5bn (£4.2bn) fund. By not raising rates “it increases the chance that governments will over-borrow and fall into a debt trap”.

The criticism of the Federal Reserve comes as it embarks on another $600bn (£380bn) of quantitative easing – or printing money – in an effort to fire up a stronger recovery next year.

Interest rates around the western world, including in Britain, have sat at or below 1pc since the near collapse of the financial system in 2008 triggered a global recession.

“If interest rates ever do go up again, you have another crisis,” Mr Einhorn told The Sunday Telegraph.

Those in favour of very low interest rates point to the support it has given the real estate market in the US and that, as in the UK, it should encourage politicians to begin to tackle the $1.3 trillion budget deficit without fear of damaging the economy.

Greenlight, which Mr Einhorn founded in 1996 with about $1m, including an investment from his parents, has its single largest position in gold – an asset that many investors have historically turned to during periods of economic uncertainty.

The gold price, which is closing in on a tenth straight year of gains, reached a record $1,432.50 an ounce earlier this month.

Mr Einhorn admits that he is having to pay far more attention to the broader economic picture when making decisions about which companies to invest in than he has ever done. He declined to say what he thought of either the UK or eurozone economies at the moment.

The 42 year-old, already well known within the hedge fund industry, shot to wider prominence in 2008 after using a lecture in May of that year to voice criticisms of how Lehman was valuing its assets. The lecture had echoes of one he gave six years earlier on Allied Capital, a lender which he accused of using misleading accounting practices.

That lecture sparked an almost decade-long battle with Allied, which is recorded in Mr Einhorn’s 2008 book Fooling Some of The People All of The Time. The financial crisis, he says, has done little to ensure that the regulators are any better at detecting either fraudulent or financially weak companies.

Both lectures drew stinging criticism from some investors and parts of the media, who accused the fund manager of stirring up concerns because it had short positions in both companies that would see Greenlight benefit if their share prices dropped.

Mr Einhorn has responded that he only holds short positions if he has serious worries about a company.

Though Mr Einhorn is best known as a short seller, Greenlight typically has more long positions than short positions.

Greenlight, which hasn’t taken any new money from investors since the early part of this decade, has delivered an average annual return of 21pc since it was started.

Vodafone is currently one of his largest positions and he also owns shares in Apple.

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Apple, Steve Jobs hit new heights in 2010


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The apple logo hangs outside the Apple retail store along the Magnificent Mile in Chicago

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Apple dethroned Microsoft as the world’s most valuable technology company in 2010 as its co-founder Steve Jobs soared to new heights with the touchscreen iPad tablet computer and the latest iPhone.

Apple dethroned Microsoft as the world’s most valuable technology company in 2010 as its co-founder Steve Jobs soared to new heights with the touchscreen iPad tablet computer and the latest iPhone.

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Britain’s Financial Times last week named Jobs its “Person of the Year” and even US President Barack Obama joined in the plaudits to the 55-year-old chief executive of the Cupertino, California-based gadget-maker.

Jobs’ appearance on a San Francisco stage in January to unveil the iPad capped what the FT called “the most remarkable comeback in modern business history.”

“It wasn’t simply a matter of the illness that had sidelined him for half the year before, leaving him severely emaciated and eventually requiring a liver transplant,” the newspaper said.

“Little more than a decade earlier, both Mr. Jobs’ career and Apple, the company he had co-founded, were widely considered washed up, their relevance to the future of technology written off,” it said.

Obama, at a White House news conference on Wednesday, held up Jobs as an example of the virtues of the “free market.”

“We celebrate somebody like a , who has created two or three different revolutionary products,” Obama said. “We expect that person to be rich, and that’s a good thing.”

Apple CEO Steve Jobs (R)
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Apple CEO Steve Jobs (R) looks at a display of the new MacBook Air at the company’s headquarters in Cupertino, California. Britain’s Financial Times last week named Jobs its “Person of the Year”.

The iPad hit stores in the United States in April and Apple reported sales at the end of September of more than eight million of the devices that the FT said offer a glimpse into a world without a computer mouse or Windows.

Other technology firms are trying to match Apple’s success with tablets of their own, including South Korea’s Samsung, Canada’s , maker of the Blackberry, and US computer giants Hewlett-Packard and Dell.

But none has yet to prove capable of preventing Apple from establishing the same dominance over the market that it exercises over the MP3 music player scene with the ubiquitous iPod, introduced in 2001.

Goldman Sachs said it expects Apple to ship 37.2 million iPads in 2011 — “which could potentially make Apple one of the largest vendors in the global personal computing market” — tablets plus personal computers.

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The iPad wasn’t Apple’s only hit product in 2010.

The 4, the latest version of the touchscreen smartphone introduced by Apple in 2007, sold 14.1 million units in the quarter which ended in September, up 91 percent over the same quarter a year earlier.

Even Apple TV, a product Jobs once dismissed as a “hobby,” is notching up strong sales. Apple said last week that sales of the latest model of the set-top box that can stream content from the Web had topped one million units.

The rare blemishes on Apple’s record in 2010 were its continuing inability to come out with a promised white model of the iPhone 4 and complaints of lost reception due to the radical antenna design on the device.

Apple shares, worth 10 dollars at the end of 2003, gained around 60 percent this year, closing at more than 320 dollars on Wall Street on Thursday.

In May, surpassed Microsoft as the largest US technology company in terms of market value. The only companies with larger market capitalization than Apple’s nearly 300 billion dollars are ExxonMobil and Petrochina.

Meeschaert New York analyst Gregori Volokhine described Apple’s rise as “absolutely extraordinary” and said “every analyst has an even higher target price for next year, between 360 dollars and 430 dollars.”

“Apple’s more than just a company,” Volokhine told AFP. “It’s become a cultural phenomenon. The hard part now will be not to disappoint.”

(c) 2010 AFP

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Many young adults seeking advice on debt management


By SHARIDAN M. ALI
sharidan@thestar.com.my

Financial knowledge crucial for youngsters

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PETALING JAYA: Young adults need to be equipped with the essential financial knowledge to avoid them from falling into “financial trap” that usually snares them at a later stage in life.

Statistics from Credit Counselling and Debt Management Agency (AKPK) showed that 44% of its debt management programme (DMP) customers were 30 to 40 years old, mainly males (67.9%) and earning below RM36,000 nett a year. Only 16% of the DMP customers were below 30 years old.

Chief executive officer Akwal Sultan said many young adults aged 30 and above came to AKPK when they had lost control of their finances, which might have started at an earlier age.

Mohamed Akwal Sultan says young adults should take control of their finances.

“They could have taken control of things earlier if they were aware of the steps needed to lead a prudent lifestyle,” he told StarBiz.

Akwal said although there was a general consensus that young adults had issues in managing their money, especially when it involved credit card, the overall non-performing loan statistics of credit cards was only 1.9%.

“It is only pockets of young adults that have problems with credit cards, contributed mostly by a lifestyle issue,” he said.

Akwal added that only 9.4% of those under the DMP faced credit card problems while 73.5% faced difficulties in managing a combination of debt, which include car loans, credit cards, personal loans and housing loans.

Thus, Akwal said there was a need for a more effective financial education programme for the young generation.

“Although it is currently being taught in schools, it is still not a subject by itself and thus does not have the desired results. At the tertiary level, the need for an effective financial education programme becomes more critical as having graduates savvy in this area will better equip them to handle their finances.

“In short, financial education is a baseline education that all individuals, especially today’s young adults, should have,” he said.

National deposit insurer Malaysia Deposit Insurance Corp (PIDM) chief operating officer Md Khairuddin Arshad said sound financial knowledge, particularly about savings and prudent spending, must be inculcated among the young generation.

“Knowledge about deposit insurance should also be part of this foundation, especially as our youths prepare themselves for working life.

Sound financial know ledge, particularly about savings and prudent spending, must be inculcated among the young generation.

“By the time they take up their first job and start a family, they should already be capable of making smart and informed financial decisions and continue to do so throughout their lives,” he said.

OCBC Bank (M) Bhd head of wealth management Ong Shi Jie said the younger generation needed to obtain basic money management skills which included budgeting, the use of credit cards and accounts checking, and the importance of savings.

“In the course of our lives, we will eventually need a credit card, mortgage or a savings account to manage our finances.

“In this regard, it remains strange that the basic skills of managing finances have not been institutionalised into our education system,” she said.

Ong said most young adults fell into the “financial trap” the minute they landed a job because the first thing they normally did was to apply for a credit card.

“This gets them into the vicious cycle of succumbing to all their wants, not needs. So, before they make their first investment or saving, they’re saddled with credit card debts and a loan for a depreciating car value.

“It’s no wonder why people worry about retirement plans 10 years too late. They’re paying for the sins’ of their early years,” she said, adding that such financial traps needed to be pre-empted by instilling sensible money management habits in children.

Although Malaysia has one of the highest personal savings rates in the world, Ong said this had been largely driven by Government policies as opposed to a higher level of financial knowledge like in other countries.

“There is definitely room for improvement as far as the current level of financial knowledge among our young adults is concerned,” she said.

In terms of programmes, AKPK’s ongoing focus is to provide financial education to post-secondary and tertiary level audiences where numerous financial education programmes are already in place since its inception four years ago.

These include National Service interactive workshops and module infusion in 31 institutions of higher learning. Bank Negara has also recently announced that a new financial capability programme will be launched next year, to be offered by AKPK.

As for PIDM, it has implemented an education programme for secondary school and tertiary students throughout Malaysia as part of its ongoing initiatives to further enhance public understanding of deposit insurance.

PIDM MoneySmart project seeks to instil the habit of savings and prudent financial management among students in schools and higher-learning institutions.

For OCBC, one of its recent initiatives is the OCBC Mighty Savers. For example, its OCBC Mighty Savers Weekend offers basic banking products and services to children at selected branches on every first weekend of the month.

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Heartbreak in Facebook world


By RASHVINJEET S.BEDI
sunday@thestar.com.my

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A 45-minute suicide countdown on Facebook continues to touch members’ hearts.

“Goodbye, my friend, goodbye My love, you are in my heart.”

RUSSIAN poet Sergei Esenin wrote this suicide note in his own blood and passed it to his friend the day before he hanged himself.

That was in 1925; imagine what he would have done if he had killed himself today.

When Alviss Kong, 22, decided to take his life after his girlfriend of four months left him last week, he posted a farewell status on his Facebook page together with a teary photo of himself.

The status at 11.15pm read “Count Down For 45 Mins…What should I do in this 45 mins?”

In the ensuing minutes, up to 204 Facebook members “liked” his suicidal status post on his Facebook wall, but no one stopped him or alerted his family on his suicidal intentions.

Alviss: Met a tragic end after countdown.

Only his sister Chelvin Kong, 28, reportedly tried to talk him out of the suicide, but Alviss assured her that he was joking.

A few hours later, his body was found sprawled on a car, fallen from the 14th floor of his apartment building in Cheras, Kuala Lumpur.

This tragic tale has been getting a lot of media coverage especially in the Chinese press, begging the question – what do you do when someone tells you that he or she wants to commit suicide?

Student Ariel Yong*, 17, believes that many thought that Alviss’ message was a prank and simply played along.

“Sometimes when my friend and I wait for the LRT train, we make stupid jokes about throwing ourselves in front of the train. But we know it’s just a joke. I suppose on Facebook, it is difficult to know what somebody really means unless you are also friends outside.”

She feels this shows the significance of “friend” or “community” on Facebook: “Most are not real friends. My real friends would really know if I am joking or serious or if I am depressed or happy.”

International survey firm TNS last month reported that Malaysians had the most “friends” on Facebook and spent nine hours a day on average surfing the site of more than 500 million members.

Real friends or not, Kim Chua*, 19, hopes Alviss got some comfort from those who responded to his wall posting.

“They may not be his real friends or close friends, but no one wants to die alone,” she says.

The psychology student says studies show that an estimated 12–20% of suicides are accompanied by a note and people write it to ease their pain, not as a cry for help.

Paul Jambunathan, consultant clinical psychologist at Monash University Malaysia and Sunway Medical Centre describes those who “liked” Alviss’ Facebook status as “emotional voyeurs”.

“People love to hear about what is happening to others and how they are suffering,” he says, linking it to the trends in today’s popular culture.

“This culture includes suicide as an option to past history within the family or significant others, movies, lyrics and media sensationalism. They all have an effect that makes suicide an option when really it should never be,” he says.

But ultimately, no one can be blamed for Alviss’ death except himself. It was irresponsible of Alviss to put up the posting on Facebook, says Jambunathan.

“He expected society to be responsible for him. He killed himself because he was depress­ed, and became helpless and hopeless. It is unfair to pin this on the girl when the only person responsible is himself, his choices in life and the kind of friends he kept.”

Jambunathan believes that Alviss might not have jumped if there was any inkling of help or hope.

Consultant psychologist Valerie Jacques agrees that Alviss was deeply depressed and put his hopes in the relationship to make him happier.

“Nothing external will make a person happier when they are depressed from deep inside,” she says.

What is clear – and somewhat comforting – is the notion that love and the way people deal with its ups and downs have not changed over time.

Jambunathan concurs, saying that les affaires du coeur (affairs of the heart) have been known to drive men to “madness.”

He explains that very deep-level emotions are involved from even the early stages of love such as infatuation right to the latter stages of mantaining a functional relationship.

“How angry are you when you are hitting on a girl you have just met, and someone else is doing the same? (Love) evokes and stimulates the very basic and deep-rooted issues in people.

“These emotions lead to aggressive behaviour that can lead people to harming others or themselves,” he says.

This is probably why people act uncharacteristically when love is the core issue at stake. As they say, “love makes the world go round” or on the opposite end “love hurts.”

Jambunathan points out that while suicide seems to be an extreme option, others regularly indulge in self-destructive behaviour because of failures in their relationships. The “broken-hearted” might turn to alcohol to try and forget their relationship or sleep around to make themselves feel better, he adds.

Julia*, 30, remembers when she drove to see her then boyfriend after they had a fight over the phone. She was at a party and had been drinking a lot.

In any other circumstance, she wouldn’t have driven but at that moment she really had to see her boyfriend.

“I had many near misses on the road. I almost drove off a bridge but in the end I arrived at my destination. It was a very stupid thing to do,” she recalls.

She says that while career and financial issues are important, they are not as important as her romantic relationships.

Nazmi Johan*, 35, says that even tough-looking males can be “over-sensitive” when their relationships fail.

“It’s quite funny to see a grown man cry because of a girl but it happens,” he says.

“Love is the biggest seller. In almost every movie, there is always some sort of love element. People always believe that there is someone out there made for them and they will live happily ever after,” he muses.

Gregory Tan* who has been “dumped” a couple of times admits that he felt lost and turned to alcohol when his heart was broken.

“When that “one” person rejects you, it’s as if the whole world is rejecting you,” says Tan.

These days, he tries to be more philosophical about things. “I try to take an ‘everything happens for a reason’ attitude. When I fail at a relationship, I would say to myself that I would find someone more compatible,” he says.

Jacques believes love, not relationships, is a big reason why people consider suicide. In Alviss’s case, she believes that the root problem was that he did not feel loved.

“Even though his family love him dearly, he had a deep belief that no one loved him and so he was not lovable. So, any external sign of rejection or break up can trigger bad feelings,” she says.

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Reviving the West


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Comment by GORDON BROWN

In 2008, at a time of financial peril, the world united to restructure the global banking system.

In 2009, as trade collapsed and unemployment rose dramatically, the world came together for the first time in the G-20 to prevent a great recession from spiralling into a great depression.

Now, facing a low-growth austerity decade with no national exits from long-term unemployment and diminished living standards, the world needs to come together in the first half of 2011 to agree on a financial and economic strategy for prosperity far bolder than the Marshall Plan of the 1940s.

Time is running out on the West, because both Europe and America have yet to digest the fact that all the individual crises of the last few years from the sub-prime crisis and the collapse of Lehman Brothers to Greek austerity and Irelands near-bankruptcy are symptoms of a deeper problem: a world undergoing a far-reaching, irreversible, and, indeed, unprecedented restructuring of economic power.

Of course, we all know of Asias rise, and that China exports more than America and will soon manufacture and invest more as well. But we have not fully come to terms with the sweep of history. Western economic dominance 10% of the worlds population producing a majority of the worlds exports and investment is finished, never to return. After two centuries in which Europe and America monopolised global economic activity, the West is now being out-produced, out-manufactured, out-traded, and out-invested by the rest of the world.

Otto von Bismarck once described the patterns of world history. Transformations do not happen with the even speed of a railway train, he said. Once in motion they occur with irresistible force. If the West fails to understand that the real issue today is responding to the rise of Asian economic power by renewing its own, then it faces the grim prospect of steady decline, punctuated by brief moments of recovery until the next financial crisis. Throughout it all, millions will be without jobs.

So why, despite this new reality, am I convinced that the 21st century can be one in which the United States, by reinventing the American dream for a new generation, remains a magnet for the greatest companies, and in which Europe can be home to a high-employment economy’

Because, fortunately for all of us, soon one billion and more new Asian producers will first in their tens of millions, then in their hundreds of millions become new middle-class consumers, too.

The growth of an Asian consumer revolution offers America a road to new greatness. Today Chinese consumer spending is just 3% of world economic activity, in contrast to Europe and Americas 36% share. Those two figures illustrate why the world economy is currently so unbalanced.

By 2020 or so, Asia and the emerging-market countries will bring double Americas consumer power to the world economy. Already, companies like GE, Intel, Proctor & Gamble, and Dow Jones have announced that the majority of their growth will come from Asia. Already, many Korean, Indian, and Asian multinationals have majority foreign (including US) shareholdings. This new driver of world economic growth opens up an opportunity for America to exploit its great innovative and entrepreneurial energy to create new, high-skilled jobs for US workers.

Asian consumer growth and a rebalancing of the global economy can be the exit strategy from our economic crisis. But the West will benefit only if it takes the right long-term decisions on the biggest economic questions what to do about deficits, financial institutions, trade wars, and global cooperation’


First, deficit reduction must occur in a way that expands investment in science, technology, innovation, and education. Both public and private investment will be needed in order to deliver the best science and education in the world.

Second, new markets cannot be tapped if the West succumbs to protectionism. Banning cross-border takeovers, restricting trade, and living with currency wars will hurt the United States more than any other country. In the last century, Americas own domestic market was so big and dominant that it need not worry much about trade rules. But, with Asia poised to be the biggest consumer market in history, US exporters the greatest potential beneficiaries will need open trade more than ever. America must become the champion of a new global trade deal.

A commitment to public investment and open trade are, however, necessary but insufficient conditions for sustained prosperity. All the global opportunities of the new decade could fade if countries withdraw into their own national shells.

In another age, Winston Churchill warned a world facing the gravest of challenges not to be resolved to be irresolute, adamant for drift, solid for fluidity, and all powerful for impotence. I believe that the world today does have leaders of Churchills stature. If they work together, drift need not happen.

America must now lead and ask the world to agree on a modern Marshall Plan that coordinates trade and macroeconomic policies to boost global growth. America should work with the new chair of the G-20, French President Nicolas Sarkozy, to revive private lending by creating global certainty about the standards and rules expected of banks.

Agreement is also needed that each countrys multi-year deficit-reduction plan will be accompanied by acceleration of consumer spending in the East and of targeted investment in education and innovation in the West. Such a plan must encourage China and Asia to do what is in their and the worlds interest: reducing poverty and expanding the middle class. And the West must speed up structural reforms to become more competitive while ensuring that fiscal consolidation does not destroy growth.

Through joint action, the G-20 economies can see not just a marginal change, but growth above 5% by 2014. Instead of a world deadlocked over currencies and trade and retreating into the illusory shelter of protectionism, we could see US$3 trillion of growth converted into 25 million to 30 million new jobs, and 40 million or more people freed from poverty.

Project Syndicate

> Gordon Brown is a former British prime minister.

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