China to US: You’re lying about Huawei, unjust and immoral bullying


Yang Jiechi defends Huawei at the Munich Security Conference

US trying to sabotage Huawei, ZTE and Sino-5G. Too late. Game over. China Rising Radio Sinoland

 

See more  :

It’s China’s Huawei against the world as spying concerns mount,” …

 

Huawei Backlash: China Accuses ‘Lying’ U.S. Of ‘Unjust And Immoral …

Related Posts:

 

By John Gramlich and Kat Devlin A growing share of people around the world see U.S. power and influenc…

Reuters pic. The term 5G stands for a fifth generation — to succeed the current fourth generation of mobile connectivity that has made…

 

Advertisements

Mega trends EAC must address


THE government is to be congratulated for establishing the new Economic Action Council that will give a better sense of direction and priorities for the nation to overcome the short-term economic challenges, such as rising cost of living, cost of doing business, restoring investor confidence and promoting sustainable economic recovery.

The Council should move with a sense of urgency. Its composition is balanced with a cross-section of representation, including from the orang asli community and consumer associations, which is praiseworthy as it does not just represent business interests. The presence of distinguished economists is also reassuring.

But I propose that the EAC also develops a longer term National Economic Strategy. To move forward, we need to identify the key mega trends that will impact on the nation in the next five to 10 years and then develop a comprehensive and holistic national strategy to address them.

I have identified here 10 strategic shifts or mega trends that need to be addressed.

1. On the international scene, we see a shift from geo-politics to geo-economics, requiring nations to adopt a geo-strategic response. This can be seen from Brexit and the US-China trade war. Geo-economics, including the control over economic assets such as oil and gas, will have a greater impact on international diplomacy. Increasingly, we will see economic and trade diplomacy becoming more important than political diplomacy to maintain global peace, stability and prosperity. We need to be able to step up to this level to analyse and strategise our response to geo-economic and geo-strategic challenges.

2. We also see a shift in the global centre of gravity from West to East with the rise of China and re-emergence of Japan as well as the growth of India and Korea. We need to identify a strategy to succeed in enlarging our presence in these markets and create new opportunities for our entrepreneurs and SMEs in China and Japan.

3. The world is also witnessing a rapid technological shift towards digital disruption and the Fourth Industrial Revolution with growing interest and applications in artificial intelligence, robotics and the Internet of Things. Big Data can be a strategic competitive advantage. The impact of drones and driverless vehicles will make a big impact on society. What is our national strategy to deal with these new technological advances? Hopefully, the EAC will also develop a strategic game plan to deal with these challenges and opportunities.

4. We also see an eco-sustainability shift with growing concern over climate change. This will drive demand for green technology and clean energy. We have a dynamic Energy, Technology, Science, Climate Change and Environment Minister. More must respond to support this ministry and its institutions. We need to embrace clean energy faster and more comprehensively.

5. Demographic shift will lead to an ageing society and a hollowing out of the demographic middle where we will have more aged elderly and younger cohorts below 30 but fewer of the middle-aged. It has been estimated that 20% of our population will be above 60 by 2040. Hence, we need new strategies and action plans to deal with the changing demographics.

6. Consumer shift will see the rise of e-commerce as we move from bricks to clicks. The rise of online business and e-commerce will not only impact on retail business but also on traditional banking, education and healthcare with the risk of fintech (financial technology), online learning and distance education, and telemedicine (pic). We need to embrace and adapt to these trends.

7. Globally, we also see a political shift from liberalism to the emergence of the right. The rightward shift led to the election of Donald Trump as president of the United States and is also partly the cause of Brexit. Is this era the end of liberalism? What can we do to bring people back to the centre? This trend has also led to a consolidation of the Malay right-wing with the strengthening ties between Umno and PAS. While the immediate focus of the EAC is economic, it also needs a strategy to deal with this phenomenon as it will impact on race relations and religious harmony, which are so essential for peace and stability to facilitate business and economic growth.

8. A shift in wealth and income has caused growing inequalities. The income gap between the highest earning population and the bottom 20% has grown. The income gap and inequalities can destabilise peace and stability. New thinking and new strategies need to be adopted to overcome the growing inequalities in our society.

9. Urbanisation shift arising from continued rural-urban migration will also cause urban poverty to rise. Urban poverty is a challenge that must be urgently tackled. The urban poor is a microcosm of Malaysian society as it comprises all ethnic groups. The rising cost of living affecting the urban poor needs to be prioritised.

10. A freedom shift is very evident after the 14th General Election with Malaysians feeling more free. This is good as it will lead to stronger support and protection of human rights such as freedom of speech, freedom of expression and freedom of association.

I believe the above 10 strategic shifts and key challenges are important priorities the government and the people must work on together.

We should have new policies to address these challenges. In formulating new policies, it is important to focus on the 4Cs – consistency, clarity, certainty and coherence.

The new Malaysia also needs the 3Is – integrity, inclusiveness and innovation. Old problems need new innovative solutions and new problems also need new ideas to resolve.

We should work together to address the above key challenges. We need to come together as a nation seeking national reconciliation and unity.

With a common purpose, we can move forward with renewed determination to build a new Malaysia that is sustainable and not a flash in the pan.

As the government has already established the EAC, I propose that it should also consider establishing a National Strategy Commission to plan future scenarios for the nation as well as effective strategies to overcome them.

A National Strategy Initiative should also be established to carry out in-depth Futures Studies for the country.

 


Kingsley Strategic Institute | Where Leaders Meet

 

TAN SRI MICHAEL YEOH OON KHENG

President

Kingsley Strategic Institute

 

 


 
Related post:

The Prime Minister’s Office (PMO) announced the  establishing of the Economic Action Council (EAC), which
will respond to and take acti.

China’s new tech soft power


Foreigners are tapping Chinese innovation to network and build businesses
International market: Foreign visitors to an expo in Nanning, the Guangxi Zhuang autonomous
region, evince interest in forestry by-products and pay for them using WeChat Pay. [Photo by Peng Huan / for China Daily]

China’s innovations impress foreigners, change startup game, boost confidence

The consumption power of more than 1 million foreigners working or studying in China is disproportionately bigger than their tiny share (0.07 percent) of the total population – and whizzes of the country’s homegrown tech ecosystem are sitting up and taking notice, as the economy transitions from export and investment-led growth to a consumption-driven model.

Manufacturers of gadgets, providers of technology-enabled services, and developers of intellectual property like innovative technologies are all vying to make life easier for the relatively small but monetarily significant foreigner community in China.

French engineer Sebastien Bernard, 37, will probably agree. He came to work and live in Beijing four months ago. The first thing he was asked to do by his friends and colleagues was to download and install WeChat, the all-in-one killer app, on his smartphone.

He complied, and his life is much the better for it, he said. As it transpired, Bernard was e-invited to join a WeChat group.

Initially, 15 foreigners chatted with each other and shared their life experiences on the e-group. Gradually, the group grew to a 200-member community of sorts that shared not just useful information like job links or party invitations but, wait for it, e-commerce discount coupons and weekend getaway packages.

Friendly advice sensitized Bernard to other treasures on WeChat. Among many other things, he learned to use the app to order food, book a taxi ride, buy movie tickets, and make digital payments for e-commerce.

Using Chinese apps, some of his friends even play online games, and borrow or lend money using e-credit channels that are redefining inclusive finance.

According to a WeChat report, by May 2017, foreigners in China sent 60 percent more WeChat messages than Chinese users on average per month. They also use WeChat audio calls 42 percent more than Chinese users.

Notably, foreigners in China are good at using different functions or features of WeChat. On average, they use emojis 45 percent more than Chinese users per day. Typically, a foreigner sends 10″red packets” – cash e-gifts – per month. Nearly 65 percent of foreigners who use WeChat use the app’s digital payment tool WeChat Pay.

“Here in China, having WeChat and Alipay accounts is like being plugged into the world. The apps include almost every conceivable service that can help make modern life easy,” said Bernard.

Agreed Yang Qiguang, 26, a researcher from Columbia University’s Tow Center who is pursuing PhD at the Renmin University of China in Beijing.  

“Chinese companies are creating a tech ecosystem that helps everyone, including foreigners, to work and live in a more convenient way.”

Forming social networks using e-tools has become integral to modern life, particularly in urban areas – and China’s tech ecosystem perhaps performs this function better than any other, by bundling consumption-related conveniences, he said.

“The tech ecosystem here facilitates people, including foreigners, to spend more. It is also boosting the confidence of both domestic and foreign companies operating in China. They know they now have powerful and reliable e-tools like apps to drive sales in a humongous market with more than 1 billion consumers,” he said.

That’s not all. Yang said China’s tech ecosystem is fostering entrepreneurialism. Even foreigners living in China are beginning to use Chinese apps to start up in a variety of fields, including technology, education and entertainment. All this business activity is a long-term positive effect for the Chinese economy, he said.

Yang could well have been speaking about David Collier, 52, a Briton who has founded four startups so far, respectively in the United States, the United Kingdom and China.

Rikai Labs, his WeChat-based e-learning business in China, helps Chinese users to master the English language through proprietary automated software. Collier said every seven years, a big platform shift comes along – from web to mobile apps; from apps to messaging platforms – that creates huge opportunities.

“We chose to base our business on WeChat because it provides a great platform for a knowledge service. You have to build your business where people are spending their time, and the biggest messaging platform of all is WeChat,” he said.

“Also, we can use WeChat payment for instant payment, QR codes for marketing purposes and to track user acquisition channels. Now with WeChat’s mini programs, we can add interactive games and other features.”

There’s more. Links to Rikai Labs and related content can be shared socially online. “It provides a very compelling platform with real-time features, social distribution, marketing hooks and monetization,” Collier said.

But risks abound too, he said. Platforms such as WeChat have become extremely competitive for startups. “If you don’t move at high speed, riding with WeChat is like taking the maglev.”

Data, however, suggest that foreigners appear to have an edge over Chinese users in exploiting the local tech ecosystem for small businesses and online social networking, which actually helps businesses directly or indirectly.

A case in point is Baopals, a startup founded by three expatriates. Call it the English Taobao, if you will. Baopals is anchored in Taobao and Tmall, the online shopping platforms owned by Alibaba Group, China’s tech giant.

Foreign visitors to an expo in Nanning, the Guangxi Zhuang autonomous region, evince interest in forestry by-products and pay for them using WeChat Pay. [Photo by Peng Huan / for China Daily]

In July 2015, Charlie Erickson, Jay Thornhill and Tyler McNew, all US citizens in their late 20s and early 30s, developed Baopals, a website that helps translate product information on the Chinese Taobao and Tmall into English. In one stroke, the trio thus opened up the astonishing world of Chinese e-commerce, or 800 million products, to non-Chinese consumers in China.

Baopals already boasts 40,000 registered users, with 16,000 of them joining last year alone, doubling the user count in 2017. A Baopals user buys 58 items on average per year, and spends about 2,500 yuan ($368) to 3,500 yuan annually.

In addition to English, the website has Korean and Russian versions, making e-shopping simpler for foreigners in China.

The website is going from strength to strength on the back of the trio’s innovations. It has introduced attractive sections like “The Cool, The Cheap& The Crazy”. It accepts Alipay, WeChat Wallet and China UnionPay for payments.

Although e-commerce destinations are dime a dozen in China, most of them are in Chinese, and cater to Chinese consumers, so Baopals stands out, said Thornhill.

“Even on Amazon China, the default language is Chinese. When you switch to English, you still see lots of content in Chinese. They just haven’t made the effort to serve China’s expat population properly,” he said.

That gap should spell business opportunities for those looking to start up, he said. “We are also changing the stereotype that Chinese goods are cheap products with low quality,” he said, adding that several products including Xiaomi air purifiers and Huawei products are very popular among foreigners.

According to Thornhill, Baopals’ revenue comes from service fee paid by shoppers. It charges a service fee of 5 percent of each item’s price, plus a small fixed fee based on the item’s price – 2 yuan for items priced below 30 yuan, and 8 yuan for items priced above 90 yuan. More than 2.3 million products had been sold by Jan 17 this year, a huge increase from the same period last year.

Given the experience in China, it is clear that homegrown technologies can succeed outside the mainland, he said. “This year is going to be a big year for Baopals, as we’ll be launching our global service. Expats leaving China can continue buying things they love here, and foreigners everywhere can discover the treasures of China’s online shopping.”

Agreed Yang from the Tow Center. China’s tech ecosystem, he said, provides foreigners on the mainland with well-rounded platforms to do business not only in China but across the world.

“It may take years for foreigners to build such infrastructure themselves. The time and energy saved during the process can be used for bolstering their own products and business.”

It’s not just small players such as Baopals that are drawing confidence from their success in China. Even e-payment giants such as WeChat Pay and Alipay, emboldened by their rapid adoption among foreigners in China, are confident of replicating their success worldwide.

Alipay has introduced its payment services, including departure tax refunds, at 10 major international airports in Japan, Thailand and New Zealand. Although the initial goal is to serve Chinese tourists traveling overseas, the larger plan is to roll out Chinese technologies worldwide and gain a global visibility and footprint.

So, it has struck cooperation agreements with local banks and companies in foreign markets, to provide e-payment services. For instance, its partners in Japan are Hida Credit Union and Kyoto Shinkin Bank, which helps attract Japanese users as well. Using such strategies, Alipay has accumulated more than 1 billion users in all, including 300 million outside China.

Sources:  China Daily/Asian News Network

Related posts:

 

Reuters pic. The term 5G stands for a
fifth generation — to succeed the current fourth generation of mobile
connectivity that has made…

 

 

Don’t blame China for global economic jitters; China contributed >25% global growth

 

China battles US for AI and robotic space: Who’s ahead?

G20 summit recognizes China’s success, a historic starting point for the world, expert said

It Changed My Life: I always hire people who are better than me


It Changed My Life: I always hire people who are better than me, says Changi Airport …

I always hire people who are better than me, says Changi Airport Group chairman Liew Mun Leong .In the background is a portrait of Singapore’s prime minister Lee Kuan Yew, painted by French artist Jean-Pierre. ST Photo Kevin Lim Top stories from The Straits Times on Sunday, Feb 3, Singapore News …

In 2007, Mr Liew Mun Leong – then CEO of CapitaLand – received a staggering $20.52 million bonus for helping the property developer achieve a record profit of $2.76 billion that year.

He is a wealthy man, but wealth, he says, means nothing to him.

Now the chairman of CAG, he says he is contented with his home (a landed property in Chancery Lane) and his BMW 7 series. “But I don’t want to work on my money. I want to work on my grey matter and if possible, grow it,” he says with a chuckle.

It explains why he still holds not one, but several jobs. Besides CAG, he is chairman of Surbana Jurong.

He sits on several boards. In many ways, he says his career has been a case of opportunity and chance. “How many engineers get the opportunity to build airports? After more than two decades in the public sector, he took up the offer to steer engg and construction firm L&M Investments….
Continue Reading

Interview with Changi Airport Group’s Liew Mun Leong: You’ve got mail – from the chairman

Mr Liew, who used to be the CEO of CapitaLand, started penning his "Sunday e-mails" back in 1998, initially for staff at the real estate giant and now at the two firms he chairs. A collection of these e-mails has been published over four volumes, wit
Mr Liew, who used to be the CEO of CapitaLand, started penning his “Sunday e-mails” back in  1998, initially for staff at the real estate giant and now at the two firms he chairs. A collection of these e-mails has been published over four volumes, with the most recent – Building People:  Sunday Emails From A Chairman – now out.PHOTO: LIANHE ZAOBAO

Staff of Changi Airport Group and Surbana
Jurong have much to glean from e-mails that their head honcho sends on Sundays to share his reflections

Getting a note from the boss every few weeks, extolling the virtue of pragmatism or sharing his observations on a Mount Fuji climb, is pretty rare for most employees but it has been a regular occurrence for two firms in Singapore.

Former CapitaLand chief executive Liew Mun Leong started penning his “Sunday e-mails” back in 1998, initially for staff at the real estate giant and now at the firms he chairs – Changi Airport Group and Surbana Jurong.

A collection of these e-mails has been published over four volumes, with the most  recent – Building People: Sunday Emails From A Chairman – now out.

Mr Liew, 70, told The Sunday Times: “I had embarked on a new hobby of writing e-mails as a means of reaching out to my colleagues and staff…

“It is a tool to influence their thinking, to curate their corporate values, their sense of responsibility to the company and to society.”

The communication goes both ways and staff are welcome to offer feedback.

Mr Liew, who left CapitaLand in 2012, believes successful leaders must be good  communicators, which is why he continues to send Sunday e-mails to staff at Changi Airport Group and Surbana Jurong.

These notes are written in his characteristically candid and casual style, containing anecdotes, personal reflection and a good handful of quotable quotes.

In an e-mail titled Pragmatism In Business, Mr Liew urged the management not to be emotionally attached to the buildings they have acquired or built. “ROE is returns on equity, not returns on emotion.”

He also shared the key ingredients of his career success – the 5Ps, which stand for paranoia, perseverance, perfectionism, passion and pragmatism.

“Being paranoid forces me to plan ahead to deal with even the most remotely possible adversity… the consequence of not doing so may be regretful and unforgiving,” Mr Liew, a trained engineer, wrote in another note.

He spends four to five hours on a Sunday afternoon crafting the e-mails, drawing inspiration from his travels, business dealings and observations.

MANAGEMENT STYLE

Whether in his previous role as a chief executive or as a chairman now, Mr Liew takes a hands-on approach in overseeing the companies, be it in the hiring of senior staff or assessing an acquisition target.

“I am involved very much in interviewing senior people, for example, a vice-president or senior vice-president. I have the vetting right… I do turn down candidates who are recommended by management.”

The topic of talent development and having the right core values takes up an entire chapter in his new book.

Mr Liew emphasises the importance of “eyeballing” candidates and asking them questions about their personal and education background to determine their aptitudes, attitudes and interests. For senior appointments, he would even personally run reference checks on a candidate’s past performance by speaking to former employers.

Having the right troops is a key consideration in driving corporate growth but, beyond talent, being committed is also critical.

“They may have talent, but they can stay with you for two years and leave… I am a firm believer of building a lasting organisation. And an organisation can last only when people last,” he said.


SURBANA JURONG

As chairman of urban-planning consultancy Surbana Jurong, Mr Liew aims to build the firm into Asia’s consultancy powerhouse on the back of the region’s growing needs in infrastructure.

The firm announced last month that it had acquired Australian-based SMEC Holdings for $400 million, a move that takes the consultancy’s workforce to 10,000 staff members in 40 countries.

Surbana has also been appointed to draw up a masterplan to develop Chongqing into western China’s logistics hub. This is part of the third bilateral project – Chongqing Connectivity Initiative – between Singapore and China.

Apart from China, the company is involved in more than 40 projects in fast-emerging Myanmar, including masterplanning, project management and engineering design.

Mr Liew is bullish about urbanisation and infrastructure prospects in China, Africa and South-east Asia, and he is not overly concerned about whether the firm has the bandwidth to handle the increasing workload.

“I have one business philosophy and that is ‘I am not worried about not enough people, I am worried about not enough business’.

“You get me the business, I will find the people to do it,” he said.

There is potential for more mergers and acquisitions ahead as Surbana Jurong seeks  to grow its capabilities in underground development and environmental engineering. Mr Liew noted that these are areas in which European companies have an edge.

CHANGI AIRPORT GROUP

It is apt to say that Mr Liew’s work at Changi Airport Group has come full circle. He was appointed to the board in June 2009 but his involvement with the world-class air hub had begun much earlier.

More than 40 years ago, he had requested a transfer to the Public Works Department to learn to be an airport engineer – a move that had him involved in the construction of Changi Airport in 1975.

Today, it is one of the world’s busiest international airports, handling more than 55.4 million passenger movements last year and serving 100 airlines flying to more than 320 cities.

“Aviation is always competitive, that is the order of the game… But I think we have  performed well… we have won over 500 awards,” Mr Liew noted.

With increasing competition from Middle Eastern airlines and airports for the  uropean market, he said Changi Airport can focus its strategies on capturing a larger share of the pie in Asia.

“We are positive that the Asian aviation business is going to be very big. Look at China, for instance… Its outbound this year is already 140 million people. It was looking at 100 million outbound in the year 2020. But now in 2016, it has already outgrown that number.”

Mr Liew’s enthusiasm about growing Surbana Jurong and Changi Airport Group is unlikely to wane with age. When asked if he would retire at some point, he quipped: “I don’t retire, I die!”

He added: “Society has invested so much in you in terms of the experience that you have and to say just because you reach a certain age, you fall off the cliff into nothingness – I think that is a silly thing.”

Related:

Jack Ma career advice: You don’t have to be smart to be successful

Jack Ma: I always try to find people smarter than I am

Stupid people get together easily but smart people can’t, so my job is to manage and ensure them get to work together

 I made money in real estate in my 20s. Not rich, but my retirement is more or less secured. I own a small business and the property that i operate out of. Preparing to move to a small town and live off of rental income, and probably open another small business there. I didn’t do anything fancy or amazing in my life, but i am very happy with how things turned out for me

 

 

Recession? No, not this year 2019


 

THE influential International Monetary Fund (IMF) has predicted slower global growth this year on the back of financial volatility and the trade war between the United States and China.

Turkey and Argentina are expected to experience deep recessions this year before recovering next year.

China, apart from fighting the trade war, is also experiencing its slowest quarterly growth since the 1990s, sending ripples across Asia. In the last quarter of 2018, China recorded an economic growth of 6.4%, which is the third consecutive quarter of slowing growth.

This has led to fears of China’s economy going into a hard landing and it possibly being the catalyst to spark global economic turmoil.

After all, it has been more than 10 years since the world witnessed the last recession in 2008 that was caused by a financial crisis in the US. If we are to believe the 10 to 12-year economic turmoil cycle, the next downturn is already due.

However, the economic data so far does not seem to suggest that the world will go into a recession or tailspin this year.

The bigger worry is what would happen next year.

The narrowing spread between the two-year and 10-year US Treasury papers would lead to banks being more selective in their lending. It is already happening in the US.

The impact is likely to be profound next year. When banks are more selective in lending, eventually the economy will grind to a halt.

But that is the likely scenario next year, assuming there is no fresh impetus to spur global growth.

At the moment, there is a significant amount of asset price depression due to slowing demand. The reason is generally because of the slower growth in China and the trade war.

China has fuelled demand for almost everything in the last few years. Companies and individuals from China drove up the prices of everything – from property and valuations of companies to commodities.

China itself is experiencing a slowing economy and the government has restricted the outflow of funds. Its overall debt is estimated at 300% of gross domestic product and banks are reluctant to lend to private companies for fear of defaults.

China’s manufacturing sector has slowed down because of the trade war. Companies are not prepared to expand because they fear the tariffs imposed by the US.

Nevertheless, the world’s second-largest economy is still growing, albeit at a slower pace. A growth rate of 6.4% per quarter is still commendable, although it is far from the 12% quarterly economic growth it recorded in 2011-2012.

The US, which is the world’s largest economy, is also facing slower growth this year. The Federal Reserve has predicted a slower economic growth of 2.3% in 2019 compared to the 3.1% the country recorded last year.

The ongoing US government shutdown is not going to make things easy.

As for Europe, the European Central Bank (ECB) has warned of a slowdown this year. The warning came just six weeks after the ECB eased off on its bond-buying programme that was designed to reflate the economy.

Business sentiments on Germany, which is a barometer of what happens to the rest of Europe, is at the lowest.

As for Malaysia, the country is going through an economic transition of sorts following the change in government. Government spending has traditionally been the driver of the domestic economy when global growth slows.

The new government has cut back on spending, which is a necessary evil, considering that many of the projects awarded previously were inflated. Generally, the cost of most projects is to be shaved by at least 10% – and some by up to 50%.

However, the projects with revised costs have not got off the ground yet and contractors have not been paid their dues. For instance, contractors in the LRT 3 project had complained of not getting payments for work done a year ago.

Fortunately, a new contract for the LRT 3 has been signed. Hopefully, the contractors will be paid their dues speedily and work recommences on the ground fast.

The volatile oil prices are not helping improve revenue for the government.

Domestic demand is still growing, although people complain of their income levels not growing. This is because companies as a whole are also not doing as well as in previous years.

Nevertheless, even the most pessimistic of economist is looking at Malaysia chalking up a growth rate of more than 4.5% this year, which is respectable. The official forecast is 4.9%.

One of the reasons for the optimism is that they feel government revenue is expected to be much higher than expected, giving it the flexibility to push spending if the global economic scenario takes a turn for the worse.

According to the Treasury report for 2019, federal government revenue is to come in at about RM261bil, which is 10.7% higher than in 2018.

The amount is likely to be much higher, allowing the government the option to put more money in the hands of the people. It also allows the government to reduce corporate taxes, a move that would draw in investments.

Malaysia has a new government in place. What investors are looking for are signs of where all the extra revenue earned will go. They are also looking for the next growth catalyst.

The trade war and financial volatility is causing structural shifts in the global economy. It is impacting China, the US and Europe.

Eventually, the global crunch will come, but it is not likely to happen this year.

By m. shanmugam

 

Malaysian Securities Commission to weed out virtual scams


SC innovation, digital and strategy executive director Chin Wei Min said those who have identified themselves to the commission can operate up to March 1. “Even if they don’t want to be in this business anymore, whatever they are holding, whether it’s money, crypto assets or digital assets, should be returned to their clients. Otherwise, we will take action.
KUALA LUMPUR: All companies engaging in digital assets will have to make themselves known to the Securities Commission (SC) by Friday, even if they have decided not to carry on once the regulatory framework comes into force.

This includes operators who are not registered with Bank Negara under the anti-money laundering and counter financing of terrorism – digital currencies (sector six) and those operating “underground”.

The SC will reserve the right to take action against those who fail to identify themselves by Friday on grounds of breaching the securities law.

SC innovation, digital and strategy executive director Chin Wei Min said those who have identified themselves to the commission can operate up to March 1.

“Even if they don’t want to be in this business anymore, whatever they are holding, whether it’s money, crypto assets or digital assets, should be returned to their clients. Otherwise, we will take action.

“The reason we also allow people to continue with their withdrawals and sell down is to ensure that there is an orderly market.

“The last thing we want is to cause confusion, and hopefully, there are no untoward fraudulent activities that people will capitalise on in this transition period and take advantage of investors,” he told a media briefing here yesterday.

While the regulation does not affect operators who are not incorporated in Malaysia, the SC can still take action against them under the Capital Markets and Services Act 2007 if the products are marketed, sold, or its operations exist in Malaysia.

Operators who identify themselves to the SC must state their intent, whether they want to resume their activities, of which certain obligations have to be met, or whether they want to wind down their business.

The SC will put up a list of operators and companies that have registered and received a letter from the commission for investors to check if their monies are with legitimate sources.

Chin also reiterated that operators are not allowed to accept new investors, list new products or conduct any sales and marketing activities during this period.

A statement by the SC last Thursday said platform operators would not be allowed to accept new investors and are only allowed to facilitate the withdrawal or transfer of client assets with the written instruction of investors.

They are also not allowed to conduct any initial coin offerings (ICOs) without prior authorisation.

Chin called on all ongoing ICOs to cease activities and the monies or digital assets to be returned to investors until the operators apply for authorisation and after they understand the SC requirements.

The guidelines are expected to be released by the end of the first quarter this year.

“If you are looking at the ones that are out there currently, the standards of the white paper are of low quality. It is important that this falls under regulated activity.

“We recognise that this is an alternative fundraising avenue. The idea here is to allow us to take out all the scams and fraudulent activities and at the same time, provide a platform for our early stage entrepreneurs to raise money,” said Chin, adding that the SC did not want people to take advantage of this as investors are pumping in money on the other end.

This is a high-risk investment and Chin also hinted that there could be a certain threshold for investors.

The Capital Markets and Services (prescription of securities) (digital currency and digital token) order 2019, which kicked in last Tuesday, will see those operating unauthorised ICOs or digital asset exchanges facing up to a 10-year jail term and up to a RM10mil fine.

The Finance Ministry said it viewed digital assets as well as its underlying blockchain technologies as having the potential to bring about innovation in both old and new industries.

By royce tan The Star

Related post:

SC to regulate digital assets

 

Fintech – disruptive technology

Huawei’s founder Ren Zhengfei breaks years of silence amid continued US attacks on Chinese tech giant


Ren
Zhengfei, founder and chief executive officer of Huawei Technologies
Co., speaks during an interview at the company’s headquarters in
Shenzhen, China, on Tuesday, Jan. 15, 2019. Ren, the billionaire telecom
mogul, broke a years-long silence as his technology empire faces its
biggest crisis over three decades of existence. Photographer: Qilai
Shen/Bloomberg

Ren Zhengfei, the billionaire founder of Huawei Technologies, broke years of silence on Tuesday as his business empire faces its biggest crisis in more than three decades amid continued pressure from the US that its networking gear may pose a security threat.
The telecoms mogul called Donald Trump “a great president” and said he would take a wait-and-see approach to whether the US leader will intervene in the case of his eldest daughter and Huawei finance chief Meng Wanzhou.
Meng is in Canada facing extradition to the US, where authorities have accused her of fraudulently  representing Huawei to evade US sanctions on Iran. She has denied any wrongdoing and said that she will contest the allegations if surrendered to the US.
The emergence of the reclusive Ren, who last spoke with foreign media in 2015, underscores the depth of the attacks on Huawei, the largest symbol of China’s growing technological might.
“I love my country, I support the Communist Party. But I will not do anything to harm the world,” the 74-year-old Ren told a select round table briefing, only his third formal chat with foreign reporters. “I don’t see a close connection between my personal political beliefs and the businesses of Huawei.”
The US has banned government use of Huawei’s technology products and services because of security concerns. US security experts have warned of a range of potential security risks, including but not limited to the capacity to control telecommunications infrastructure and even conduct undetected espionage. It has pressed its
allies to follow suit.
Japan has excluded Huawei from public procurement and Australia and New Zealand have effectively blocked Huawei from the roll-out of their 5G network infrastructure. The UK and Canada are also weighing the possible security risks posed by Huawei — along with a growing list of other European countries.
Huawei has consistently denied any connections with the military, saying that it is a private company part-owned by its employees and that governments need to ensure there is an objective basis for choosing  technology vendors.


“Ren Zhengfei doesn’t give many interviews, but his decision to speak publicly seems like a smart move,”
said Brock Silvers, Shanghai-based managing director of Kaiyuan Capital. “The threat to Huawei’s European business is real and it is understandably responding to it. Ren’s public comments today show how seriously he
views the situation.”

Ren, who joined the Communist Party after leaving the People’s Liberation Army, stressed the potential for
cooperation with the US. He played down Huawei’s role in current trade tensions between Washington and Beijing, which have rattled investors and corporations worldwide.
“Huawei is only a sesame seed in the trade conflict between China and the US,” Ren said from the company’s newest campus in the industrial city of Dongguan.
“Trump is a great president. He dares to massively cut tax, which will benefit the business. But you have to
treat well the companies and countries so that they will be willing to invest in the US and the government will be able to collect enough tax.”
Meanwhile, China’s Foreign Ministry on Tuesday urged Canada to release Meng immediately, saying the case was an abuse of legal procedure. Ministry spokeswoman Hua Chunying made the comment
at a daily news briefing in Beijing.

 

Meng was released on bail five weeks ago and is living under restrictions in her multimillion-dollar Vancouver home while awaiting extradition proceedings.

 

The arrest in Poland last week of a sales executive accused of spying may have helped prompt Ren to personally marshal Huawei’s global response. The employee in Poland was subsequently fired by Huawei, which said the individual had brought the company into disrepute.
Ren expressed hope that Huawei could find a way forward with the US.  Huawei is not a public company, we don’t need a beautiful earnings report,” Ren said. “If they don’t want Huawei to be in some markets, we can scale down a bit. As long as we can survive and feed our employees, there’s a future for us.”

 

Ren is a legendary figure in China’s business world and moves in the highest government circles. The self-made
billionaire is the son of schoolteachers and grew up in a mountainous town in China’s poorest province, Guizhou.

Huawei founder and CEO Ren Zhengfei survived a famine, but can he weather President Trump?

 

A survivor of China’s great famine between 1958 and 1961, Ren graduated from the Chongqing Institute of Civil
Engineering and Architecture. He worked in the civil engineering industry until 1974 when he joined the PLA as an engineer – a connection that still provokes questions in the West about Huawei’s ties to the Chinese army and government.

 

%d bloggers like this: