Tycoon Robert Kuok stands tall amid the bashings from Umno leaders


Well-regarded: Kuok in his office in Hong Kong. Picture taken from ‘Robert Kuok: A Memoir’.

 

DURING the two week-Chinese New Year celebrations, with the tossing of yee sang for better times ahead, the key topic of conversation among the Chinese revolved around the general election.

But the sudden eruption of high-level political attacks on Robert Kuok last weekend sent shockwaves through the community. Since then, the richest man in Malaysia has been the talk of the town.

The onslaught could not be taken lightly as Kuok is not just any ordinary businessman but someone of stature held in high esteem not only in Malaysia and China, but also by the global Chinese community.

It is a known fact that Kuok helped to lay the groundwork for the end of communist insurgency in Malaysia, played a role in easing racial tension after the May 13 racial riots and contributed funds to Umno and MCA during elections.

His generous donations have benefited the poor and rich.

Kuok has always stood tall among everyone.

Dubbed the “Sugar King of Asia”, Kuok has set up a huge international empire with businesses spanning from commodity trading to hotels, sugar and oil palm plantations, wheat flour milling, property development and entertainment.

In Malaysia, he retains control of Shangri-La Hotels and the wheat flour business after selling his sugar and property businesses.

Hence, the Chinese community here feels hurt to see their business icon being smeared based on hearsay. They see grave injustice done to this man whose loyalty and commitment to the country is being questioned.

However, due to suspicion that the whole episode could be a politically driven scheme ahead of GE14 for various reasons, Chinese community leaders only spoke up after Kuok defended himself.

While many are aware that Kuok’s recent memoir had irked some quarters due to his disdain for the New Economic Policy (1971-90), they are perplexed by the timing of this smear campaign.

Kuok’s political revelations in his book have also earned him brickbats from some people.

This round, the criticisms against the tycoon were based on three articles posted by blogger Raja Petra Kamaruddin on the online portal Malaysia Today.

The most startling allegation made by the controversial blogger, who has a record of stirring up racial hatred towards local Chinese in past writings, was that Kuok had donated hundreds of millions to the DAP in a bid to overthrow the Umno-led government.

Without verifying the content, Malay critics and senior Umno politicians told Kuok to be grateful to the Government as the tycoon had built his early sugar, rice and flour empire based on his good ties with Umno leaders.

The remarks by Tourism and Culture Minister Datuk Seri Nazri Aziz were particularly scathing, as crude and offensive words were used. In addition, he told Kuok to surrender his citizenship.

The critics might have misconstrued earlier statements by Datuk Seri Najib Tun Razak, who had said that some of the richest people, including Kuok, owed their success to opportunities created through government policies.

“If we look at the list of names of the richest people in Malaysia, such as Robert Kuok, who gave him the key to become the rice and sugar king? It was given to him by the ruling government,” said the Prime Minister at an event in Selangor on Feb 24.

“Yes, he is driven, hardworking, industrious and disciplined – but that is not enough. Everyone still needs the key to creating these opportunities,” he added.

Although DAP leaders promptly denied receiving money from Kuok, this failed to stop the tirade of aspersions cast against Kuok.

It was obvious that Kuok had to defend himself. He issued a statement last Monday, saying all allegations against him were “untrue, unjustified and amounted to libel”.

The 94-year-old Kuok, who moved his business headquarters from Kuala Lumpur to Hong Kong in 1975, denied funding The Malaysian Insight portal or opposition parties to overthrow the Government.

He also denied that he was anti-government, a racist or a Chinese chauvinist.

While Kuok’s hint of instituting libel suits might have some deterrent effect, the proposal by MCA president Datuk Seri Liow Tiong Lai to the Prime Minister to intervene in the matter could have shut the mouths of Umno leaders.

Liow tweeted: “I have conveyed the feelings of the Chinese community to the PM. We hope that the PM will intervene to put this issue to rest. Mr Kuok has contributed greatly towards the development of the nation.”

If the vicious attacks on Kuok were allowed to continue, the first casualty in GE14 could be MCA and Gerakan, and ultimately Barisan Nasional, as angry Chinese could be provoked to vote against the coalition in GE14.

And the unintended winner from this latest episode could be the opposition side.

The question now is: Faced with so many challenges in the coming polls, could Barisan afford to sow a new seed of discontent and allow it to germinate unchecked?

The Prime Minister’s Office issued a statement, saying Kuok’s success is “an inspiration” for other entrepreneurs.

Though this brief statement and its “cooling effect” came a bit late in the political sense, it was better than nothing.

In addition, a tribute to Kuok posted by Najib’s brother Datuk Seri Nazir Razak on Instagram is also a comfort to the Chinese.

“I may not agree with all his views but he (Kuok) is a patriot, the icon of Malaysian business and a first-class gentleman,” said Nazir, the chairman of CIMB Group Holdings Bhd last Wednesday.

However, the injustice done to Kuok on such a scale is unlikely to be forgotten soon, as this incident has also stirred up some debates.

Is there any hidden political agenda to vilify Kuok before GE14? Do successful businessmen owe their allegiance to ruling political parties? Is it morally wrong to change your political stand?

Dr Oh Ei Sun, former political secretary of Najib, offers some explanations to Sunday Star: “Robert Kuok has shown his contempt for the NEP in his book. This may be seen as questioning Malay supremacy and this attitude must be nipped in the bud.”

He adds that Kuok may not be forgiven for stating the obvious, which many Chinese have wanted to voice out but could not for fear of losing business opportunities.

In his memoir, Kuok stated that although the Chinese have played a significant role in the economic development of Malaysia and other South-East Asian nations, many did not receive just and fair treatment.

Sin Chew Daily, quoting unnamed Barisan sources, says the bashing of Kuok also carried a warning message to the business community to think twice before they contribute election funds to opposition parties.

“These attacks also sent a message to the Malay community that they must be united to support Umno, which is being ditched by others it has helped to prosper,” said the Sin Chew report last Thursday.

Although a life member of the MCA, businessman Tan Sri Lee Kim Yew believes people owe no loyalty to political parties.

He tells Sunday Star: “A businessman is expected to be loyal to his country, not to ruling parties. Politicians and political parties come and go.

“Whoever becomes the government has a duty to create a conducive environment for the people to prosper and live harmoniously. If politicians are not worthy of support, people are free to switch their political stand in a democracy.”

Apart from ordinary people, the business community is also watching developments linked to Kuok with concern.

“If the issue on Robert Kuok is not handled properly, there will be a negative impact on the sentiment of investors. We are all following these developments,” says a businessman at a CNY dinner.

by Ho Wah Foon, The Star

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https://youtu.be/cCoO3JEKZ48 PETALING JAYA: The recent attacks against multi-billionaire Robert Kuok, including those from Umno leader..

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Attacks against Malaysian multi-billionaire Robert Kuok from UMNO leaders and Raja Petra uncalled for!


https://youtu.be/cCoO3JEKZ48

PETALING JAYA: The recent attacks against multi-billionaire Robert Kuok, including those from Umno leaders and a prominent blogger, are regrettable, says MCA.

Party secretary-general Datuk Seri Ong Ka Chuan said it was a well-accepted fact that Kuok is a successful international entrepreneur.

“Kuok has made tremendous contributions to the country. These comments are made to spread hatred and create disunity,” he said.

Ong said Culture and Tourism Minister Datuk Seri Nazri Aziz has no right to request any Malaysian citizen to give up their citizenship.

“This is not within his jurisdiction,” he said.

Last week, blogger Raja Petra Kamarudin posted three articles in his website Malaysia Today, alleging Kuok was funding various political parties to overthrow the Government.

In response, Kuok refuted allegations and that he would reserve the right to take action against the portal.

MCA publicity spokesman Datuk Seri Ti Lian Ker concurred with Ong, saying there was no need to resort to harsh remarks against the 94-year-old tycoon.

“MCA is of the view that Kuok is a businessman who has benefited Malaysians in general.

“He is our business icon and revered by Malaysians from all ethnic backgrounds,”he said.

Ti said Kuok has every right to support whichever political party and that there were existing laws to deal with any attempts to undermine the Government.

“As a businessman, he could have supported many political parties and politicians from Barisan and Pakatan too. There’s no need to overreact by being ill-mannered in this instance,” he said.

But Ti pointed out that all businessmen who have benefited from Barisan’s policies should be thankful and reciprocate with support.

Two prominent Johor Barisan leaders – Tan Sri Shahrir Abdul Samad and Datuk Seri Dr Wee Ka Siong – came out to defend Kuok, saying they believed the tycoon would not interfere in national politics.

Dr Wee dismissed Raja Petra’s claims as “unreliable”.

“What was said on his blog was just a spin. There is no evidence. It is not persuasive,” said the MCA deputy president and Ayer Hitam MP. – The Star

 

The ugly side of the digital economy


ALMOST everybody is addicted to the digital world of connectivity. Only a handful can dare say that they are not dependent on the Internet or the connectivity that comes with the digital age.

To those not convinced that they are addicted to technology and the Internet, they should try asking themselves a few questions.

When was the last time they accessed the computer to search for something through Google? When was the last time they accessed Facebook or Whatsapp to stay connected? How long have they gone without getting “an anxiety attack” without having their handphones with them?

If an uneasy feeling creeps into them without having their computers or mobile phones with them, then the chances of them being reliant on the digital world is high. If they are lost at work without “Mr Google” and feel handicapped, then they are hooked on the digital world.

From the hundreds of people I know, only two do not carry a mobile phone with them. One is a seasoned lawyer while the other is a retired factory manager. They are exceptions to the norm.

The digital age is here to stay and grow. The advantages of digital connectivity in terms of accessing instant information and staying in touch with others seamlessly are just too great to be without.

These days, even people in their late 50s and 60s are active users of Facebook, which they see as critical touch points of their lives with others. The instant response to their postings is a gratification of sorts.

These are new touch points that they would normally not be able to enjoy without digital connectivity. However, there is a downside to this digital addiction in both the social and economic sense.

There is a book going into the details of how more people are depressed without digital connectivity, how people have gone berserk without having access to Internet connectivity. This is one of the many social downsides of the digital age.

However, more shocking is the unconventional work ethics, sexual harassment and culture of idolising individuals that have become rampant with the rise of the digital economy.

Last week, the former chief executive of the Malaysian Global Innovation and Creativity Centre (MaGIC), Cheryl Yeoh, revealed that she was a victim of sexual assault by a venture capitalist, Dave McClure, three years ago.

The revelation only came after The New York Times reported that McClure had stepped down from 500 Startups following allegations of sexual harassment against him.

500 Startups is a Silicon Valley-based early-stage venture fund and seed accelerator. Generally, the principals of venture funds tend to exert their influence over those seeking their money.

It is rampant in the world of the new economy where funding from banks is not easily available. Banks would want to see profits and a strong balance sheet before they lend money to start-ups. Start-ups in the digital economy rarely have both financial elements.

Yeoh said that she did not come public with the incident earlier fearing that many would not believe her. She also did not want to jeopardise the business venture between MaGIC and 500 Startups.

McClure is not the only venture capitalist who has faced the brunt of unethical work practices. Travis Kalanick, the founder and prime force behind ride-hailing app company Uber, has also been forced out by shareholders after a series of scandals in the company.

Among those who complained against the work culture of Uber was software engineer Susan Fowler Rigetti, who in her blog posting stated that the company’s work environment was hostile towards women, leading to many of them leaving.

The hostility went beyond sexual harassment. It was even to the point of the women not getting leather jackets as their numbers were small compared to the men who had received theirs from the company.

Because the number of women working in Uber was small, the company, which is touted as the most valuable unlisted new economy entity, could not get the discounts required and hence did not order the leather jackets.

In a company engaged in the old economy of brick-and-mortar businesses, such reasoning would not have been tolerated. But it has happened in Uber, where Kalanick held a position so strong that the way he managed the company was not questioned.

Hero-worshipping the founders is quite common in new-economy companies. Whatever the founders decide is not questioned. It has come to the point where even when deals are concluded at lofty valuations, hardly any murmurs are raised.

No questions asked: Jeff Bezos of Amazon purchased a grocery chain, Whole Foods Market, for US14bil two weeks ago and nobody batted an eyelid or raised any questions. – AFP

Jeff Bezos of Amazon purchased a grocery chain, Whole Foods Market, for US$14bil two weeks ago.

Nobody batted an eyelid or raised any questions as to why a new-economy heavyweight was buying into a matured company in an industry that was facing huge challenges because of Amazon.

Amazon, with its online shopping platform for anything from books to groceries and even movies, has disrupted the retail industry. The likes of Wal-Mart and Tesco are reeling from the growing dominance of Amazon.

So, why is Amazon buying into a grocery chain operating in the industry that it is destroying?

Nobody knows the answer. They only rely on the faith that Bezos can do no wrong. Blind faith is the biggest downside to the digital economy.

Digital economy companies tend not to give dividends and spend a lot on research and development under the excuse that the business is still growing and needs all the financial resources.

Investors believing that mantra follow blindly. They are encouraged by the rising share prices even though there are little fundamentals.

One day, such blind faith will lose its lustre and the price will fall. Only then will investors realise that the old-fashioned way of valuing companies is still way better.

The alternative view by M.Shanmugam

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Goodbye Motorola! How Chicago’s greatest tech company fell to earth?


Under the Galvin family, Motorola had soaring achievements. This was the
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Click below and Scroll or arrow down to keep reading.

Earn your money the right way: no quick buck, get paid only for honest, hard work



Get-rich quick schemes drawing the interest of those who want to make a quick buck but really, there is no substitute in getting paid for honest, hard work

AS a Penangite, I am always asked by my colleagues and friends in the Klang Valley why is it that most get-rich-quick schemes are located in the island state and the investors mostly its citizens.

I have asked that same question myself, since I’ve heard enough stories of relatives and friends who have been entangled in this web of financial crookery.

It’s not something new. It used to be called the pyramid scheme and Ponzi but, like most, it is just another scam. The new term is ‘money game’ and it’s probably called this to warn new participants that there will be winners and losers, like in any other game.

However, no one is listening because most people are merely interested in the quick returns from their investments.

There are some reasons why Penang lang (Hokkein for people) have warmed up to these quick-rich con jobs.

Penang is a predominantly Chinese state and rightly or wrongly, the appetite for risk there is higher. Some may dismiss risk as a euphemism for gambling, but the bottom line is, many of its denizens are prepared to roll the dice.

Given that there are so few police reports lodged against operators, despite the huge number of investors, indicates the readiness of these players to try their luck.

They clearly are aware of the element of risk involved when they lay their money down, but the huge returns override any rational thinking. No risk, no gain, they probably tell themselves.

Making police reports against operators also runs the risk of “investors” getting their money stuck if the accounts of the scammers are frozen.

Risk-taking is nothing new to many Penangites. This is a state with a horse-racing course and plenty of gaming outlets. Is it any surprise then that a spat is currently playing out between politicians over allegations that illegal gaming outlets are thriving there?

One politician believes the state government does not have the authority to issue gambling licences and “to single out Penang also ignores the fact that gambling is under the Federal Government’s jurisdiction. We don’t issue such licences.”

It’s bizarre because no one issues permits to illegal gaming outlets. That’s why they are called illegal.

But there are some fundamental sociological explanations to this fixation on earning extra money in the northern state.

The cost of living has gone up there … and everywhere, too. For the urban middle class, it is a monthly struggle managing the wages – after the deductions – settling the housing and car loans, and accounting for household items such as food, petrol, utility and tuition for the children.

The cost of living in Penang may be lower than that in the Klang Valley, but it is not cheap either. Any local will tell you that the portion of char koay teow has shrunk, although the price remains the same.

But unlike the Klang Valley, where career development and opportunities are greater, the same cannot be said of the island state.

Many of us who were born and brought up in Penang, moved to Kuala Lumpur because we were aware of the shortage of employment opportunities there.

We readily sacrificed so much, moving away from our parents and friends, relinquishing the relaxed way of life and the good food for a “harder” life in the Klang Valley. We paid the price for wanting a better life.

Job advancement means better salaries, but in Penang, where employers have a smaller base, they are unable to match the kind of pay packages offered in KL.

So, an extra few hundred ringgit from such investments does make a lot of difference to the average wage earner.

It is not unusual for many in the federal capital to take a second job to ensure they can balance their finances.

I don’t think many Penangites expect to be millionaires, at least not that quickly, although JJPTR has become a household acronym since hitting the market in the last two years. As most Malaysians by now know, it stands for JJ Poor-to-Rich, the name resonating well with middle class families.

Its founder, Johnson Lee, with his squeaky clean, boyish looks, assured over 400,000 people of his 20% monthly pay-outs and even more incredibly, convinced many that billions of ringgit vanished due to a hacking job.

Then came Richway Global Venture, Change Your Life (CYL) and BTC I-system, among others. And almost like clockwork, Penang has now earned the dubious reputation of being the base for get-rich-quick schemes.

Having written this article while in Penang, I found out this issue continues to be the hottest topic in town, despite the recent crackdowns by the authorities.

My colleague Tan Sin Chow recently reported in the northern edition of The Star that “money games are on the minds of many Penangites.”

On chat groups with friends and former schoolmates, it has certainly remained very much alive.

Tan wrote: “Another friend, Robert, had a jolt when, a doctor he knew, told patients to put their money into such a scheme. A doctor!

“From the cleaners at his office to the hawkers and professionals he met, everyone, it seems, was convinced. None questioned how the high returns could come to fruition in such a short time.”

We can be sure that these get-rich-quick scheme operators will lie low for a while, but the racket will surface again, in a different form and under a different name.

There is no substitute for honest, hard work. Money doesn’t fall from the sky, after all.

BY Wong Chun Wai The Star

Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 27 years in various capacities and roles. He is now the group’s managing director/chief executive officer and formerly the group chief editor.

On The Beat made its debut on Feb 23 1997 and Chun Wai has penned the column weekly without a break, except for the occasional press holiday when the paper was not published. In May 2011, a compilation of selected articles of On The Beat was published as a book and launched in conjunction with his 50th birthday. Chun Wai also comments on current issues in The Star.

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Bitcoin, digital currencies rally, caution prevails; virtual currency in property


Bitcoins As Digital Currency's Rally Crushed Every Other Currency in 2016
A collection of bitcoin tokens. Bloomberg—Bloomberg via Getty Images

Digital currencies rally, but caution prevails

While investing in the future is the way to go, it comes with risks and rewards. The best strategy would be to not be in a rush. Do your homework.

THIS week, the rally in crypto currencies is at its all-time high.

Bitcoin, the pioneer in digital currency, surged to over US$1,700 per coin in
anticipation of a reversal in United States financial regulators’ ruling to allow for an exchange-traded fund for Bitcoin and other factors.

Bitcoin was trading at US$935 on March 24. It rose 82%, pushing its market capitalisation to over US$28bil.

Ether, another such currency, surged from US$8 on Jan 1 to US$90 this week, gaining 1,125% in five months.

The market capitalisation of the 700-over currencies is over US$50bil. The promoters believe it is the currency of the future, hence the rise, but the naysayers believe it is entering a speculative bubble.

But there are some who are ditching gold to mine Bitcoins.

It is a fact that crypto currencies are gaining traction from their inception in 2009. Now, at least 150 organisations including Apple, Walmart, Sears, eBay, Overstock.com,  Microsoft, Steam, Expedia and even Subway accept them in exchange for goods.

So, what is Bitcoin then?

It is a form of digital currency, created and held electronically, not blocked by any nation or government, not printed like dollars and ringgit but produced by people. Crypto currencies are digital currencies that use encryption to secure transactions and control how new coins are made.

You and I can get Bitcoins by “mining” computers that validate blocks of transactions using software to solve mathematical puzzles every 10 minutes. If you solve it first, you are rewarded with new Bitcoins.

Bitcoin is the mother of all crypto currencies – also known as virtual currencies, digital currencies and private currencies.

Other than Bitcoin and Ether, there is also Dogecoin, Augur, Chinacoin, Litecon, Dash, Waves and Zcash. There are over 40 exchanges globally to trade in Bitcoins.

All this came about because of fintech, the financial services technology that is  disrupting the financial services sector with faster, cheaper and so-called “reliable”
transactions for money transfers, bank exchange rates and other money-related transactions. The average clearance is a 12-hour period, which apparently the banks cannot match.

In Brazil, people use Zcash to pay for their taxes, electricity bills and purchases.

This week, Australia said there would be no double taxation for crypto currencies and to treat it just like other currencies from July 1, paving the way for greater usage.

Many are betting on crypto currencies because of the lure that they are the currency of the future. Would you?

Since 2009, there have been gainers and losers, so you decide.

All these digital currencies came about because of the Internet and data.  The value of data and digital services is becoming more apparent, and in the digital era, data is the new currency.

Amid all this is blockchain, which is simply a digital ledger that keeps track of Bitcoin transactions and transfers it globally. It boasts of instantaneous transactions, transparent and cheaper than the traditional ways. This is why banks are hurriedly getting their acts together in the area of fintech so as to not miss the boat.

There is a growing number of mergers and acquisitions and crowdfunding for blockchains. Last month, music-podcast-video streaming service Spotify  bought over blockchain technology company Mediachain Labs to help reward  online content owners with royalty payments.

Other telcos and IT firms are getting into blockchain because they don’t want to miss out on anything. Other payment companies are getting into the act too. There is just too much interest in this new wave of doing things.

The journey of crypto currencies, however, is not without hurdles, and there are plenty out there that cannot be ignored. Even blockchain’s growth cannot be ignored, especially since it is being positioned by those championing it as the de facto technology of the future.

But will it really be all that or will it just add another layer to the overall cost?

All these transfers do not need regulation as yet, something that central bankers don’t like. In fact, Bank Negara is already in the thick of things where fintech is concerned.

While investing in the future is the way to go, it comes with risks and rewards. The best
strategy would be to not be in a rush. Do your homework, as there is also the other side of Bitcoin – fake websites, fake online gaming sites, trading, etc.

I bet you would know of someone who has lost money mining Bitcoin or Ether. You honestly wouldn’t want to be put in a spot like those caught up in the recent forex scam and the earlier gold scam.

It would be good too to bear in mind that the sweet spot of crypto currencies has been linked to terrorism financing, money laundering, tax evasion and fraud.

Trust and transparency have been the bedrock of financial institutions all these years. Ensure your bedrock is solid, but at the same time, remember what the former US Federal Reserve chairman Ben Bernanke had said in a letter to US senators about virtual currencies, that they “may hold long-term promise, particularly if the innovations promote a faster, more secure, and more efficient payment system”.

Do you think blockchain will bring trust and transparency to the world of crypto currency? Share your thoughts with me at bksidhu@thestar

Source: The Star by b.k. sidhu

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Property in a digital era

WITH digital technology all the rage and taking the world by storm, we look at how science and automation has managed to change and revolutionise the way we do things, in this section, property.

While the internet has changed the way we receive information and connect with others and the smart phone transformed the whole concept of a phone, we now look at the evolution of finance and how purchasing items, including a house, is going through reform with the introduction of bitcoin.

Introducing bitcoin

When people hear terms like “bitcoin” and “blockchain”, many are vague while some may not even be familiar with these words. But for the technology industry adept, bitcoin and blockchain is common as these new-age technology concepts and modus operandi have been around, perhaps less widely known in Southeast Asia as it is in the West and China.

For the uninformed and in the dark, bitcoin is a technology that has established a new electronic payment method using “digitised money” made with digital cryptography, otherwise known as cryptocurrency.

This system of payment is carried out when a user uses “bitcoin currency” (or cryptocurrency) to pay for goods by transferring the currency to another user (seller) within the bitcoin community.

Each transaction is recorded in a public data ledger known as “blockchain” and it is here where all the transactions that have taken place within the bitcoin community are stored.

The amazing thing about this system is that anyone in the bitcoin community is able to validate transactions that take place without the need of an intermediary.

Sound too good to be true and a little risky? Well, the reason there is no intermediate party necessary is due to the network bitcoin technology is regulated on.


Modus operandi and more

The bitcoin network is founded on a “peer-to-peer network system (P2P network)” which is explained as “a network of computers/ mobile configured to allow certain files and folders to be shared with everyone or with selected users”.

As a result, the “participants” are in control of their transactions, making everyone equal within the bitcoin community, which is also transparent.

It is said that bitcoin technology was first created in 2008 by a person or a group of persons under the pseudonym “Satoshi Nakamoto” in a research paper. The research stated that there was need for a new electronic payment method, one using digitised money. The analysis also included the future of bitcoin, its benefits, capabilities and potential.

The system was implemented on Jan 3, 2009. And after just a few years, bitcoin grew to become a whopping US$12 billion (RM52.7 billion) globalised economy.

Bitcoin attributes

While not much has been said about bitcoin in this part of the region, the system has been around, slowly developing and growing. Like many things that are cloudy and not often talked about, people are weary hence, there will be sceptics who dissuade others about the system they themselves are unclear about.

With that, theSun’s Brian Chung shares what he learnt of this new method of transaction and currency when he attended a talk by renowned entrepreneur, author and expert on bitcoin Andreas M. Antonopoulos.

Below, Antonopolous shares important information on bitcoin.

1) Bitcoin is an open system of payment: It is a system that anyone can access, participate and innovate, and does not require permission. Bitcoin allows anyone to join in and use the system, validate the transaction and create different kinds of cryptocurrency.

2) Bitcoin is borderless: Like the internet, bitcoin is not restricted to a country’s rules and regulations as it has its own protocol with no distinction across countries.

3) Bitcoin is neutral: Bitcoin does not take the identity of the participant into any consideration. It only validates the transaction that takes place between participants. This attribute also allows participants to remain anonymous.

4) Bitcoin is censorship resistant: Every transaction in the bitcoin network cannot be frozen, censored or canceled. Like the internet, the bitcoin system is a global digital economy with one currency.

5) Bitcoin is a decentralised system: The bitcoin network has no central institution or centre point of control. This trait ensures that there is no one major target for hackers to concentrate their attacks on. Instead, hackers have to create attacks on every single participant’s software with different forms of virus and codes to hack into one computer.

6) Bitcoin is scarce and limited: Bitcoin is a system of value like gold but in digital form. This makes it a system that is not based on credit and debit. It also makes bitcoin a singular global currency with no exchange rate between countries.

7) Every bitcoin transaction is permanent and immutable: The transaction of everyone in the community is verified by everyone in the system. Once it is verified, the transaction will be permanently recorded in the blockchain.

8) Bitcoin is a constantly innovative technology: The open source nature of the bitcoin technology allows other people to further improve on it. There are many other cryptocurrencies based on the bitcoin technology. Moreover, the bitcoin technology is dependent on the internet, which makes improvement and innovation necessary.

Bitcoin transactions can be done via smart phones and computers by downloading the application and software. Users do not need to register themselves to be part of the bitcoin network as all “participants” are referred to by codes and “signature of one’s device”.

However, iPhone users need to remember their iTunes password to download the application. In addition, the device that one has downloaded the bitcoin software on must remain connected to the internet in order for one to use the bitcoin method of payment.

Follow our column next week on the application of bitcoin in property.

[Note: All charts courtesy of Bitcoin Malaysia.]

 

The application of bitcoin in property

 

WHILE last week, we introduced the term bitcoin to those oblivious of this new age cryptocurrency and system of payment, this week, we share bitcoin whiz Andreas M. Antonopoulus’ insights on how this technology is applied in property. Here is what he had to say:

Permanent records

“One very common application is the registration of assets or ownership of tangible and
non-tangible things like the registration of title over land and the ownership of assets
like homes.

When you record something on blockchain, it cannot be modified … it is immutable. Once recorded on the blockchain, the system of trust prevents anyone from reversing or overwriting it. That makes a record on blockchain permanent, an immutable record which is really important in real estate transaction as it allows one to pass the title of a piece of land from person to person independently with no one being able to falsify the record or steal land through paper,” Antonopoulos said.

Moreover, he mentioned that this technology can benefit the industry tremendously as it is able to resolve a huge problem in real estate and property transactions – the falsification of strata titles and property documents.

His view is further enhanced with the emergence of another bitcoin-based system, ethereum. Like bitcoin, ethereum has its own cryptocurrency known as ether. However, ethereum adopts a different technology that is based on the blockchain public ledger system known as Smart Contract.

According to Antonopoulos, a smart contract is an electronic contract with all the contractual obligations of the buyer and seller. The contract is written and coded into an application, which will ensure both parties fulfill their obligations.

Like blockchain technology that is built on trust and verification, these contracts are encoded in a public ledger in the ethereum community. If anyone tries to forge the contract, the ledger will reject it. As such, this smart contract cannot be rewritten and altered as it is a permanent and immutable contract.


Direct transactions

Besides the use of a contract, the technology will make transactions direct, fast and secure.

Antonopoulos also shared about the removal of third parties and its altered role. He said, “Another example relevant to real estate application is the function of escrow. In order to do make transactions for real estate today, people have to use a third party agent, an escrow agent. This escrow agent charges a significant amount of money in most countries. During the process, that agent holds custody of the entire fund, which is dangerous. This means that the escrow agent has to be carefully vetted and have foresight.

Bitcoin can replace all of this by using multi-signature, which allows the seller and buyer to transact escrow programmatically, with the third party acting as mediator only in the case of a dispute.

Buyer and seller will be able to execute a transaction on their own without the need of an escrow agent and without any of the parties having custody of the entire fund. Through bitcoin, you do not need to spend that additional one percent of the sale of the house – the escrow agent is no longer necessary.

It can also change the speed of escrow by doing it in hours instead of a month and changes the security because no one of the three parties can run away with the money. It is faster, cheaper and secure. It can be done in other industries related to real estates like purchasing assets, corporation, mergers and acquisitions.

International property purchase

With the use of decentralised digital currency, one can assume that purchasing items and properties is a little easier, and it is.

The chance of purchasing international property is further reinforced by the fact that bitcoin is not controlled by anyone, not even political and banking institutions. This attribute of bitcoin makes it easier for people buying property from another country. Although each country has its regulations, the use of bitcoin to purchase property abroad saves time and money as one does not need to change currency.

The Australia Real Estate website has stated that there are properties in the United States and Latin America being sold using bitcoin. The Wall Street Journal wrote an article in 2014 regarding a Lake Tahoe property, which was sold for US$1 million in bitcoin.

Follow our column next week for more interesting information on bitcoin, its challenges and how stable a cryptocurrency it is.

By rian Chung

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The Death of the iPhone


 

When I first predicted the “death of the iPhone” in January 2016, most people just laughed.

But when Apple reported its first-ever decline in iPhone sales just three months later, many began to quiet down and listen.

Now, even Tim Cook is recognizing the slowdown, after posting a surprise sales decline in second-quarter earnings this week.

According to Apple’s own CEO:

“We’re seeing what we believe to be a pause in purchases on iPhone.”

Cook has his own theories, but he’s missing the bigger picture. Apple has failed to innovate, and it’s costing the company a fortune.

Many are banking on the iPhone 8, but the truth is even it won’t stand up to what’s coming next::

Simply put, the age of the iPhone is coming to an end…

And the age of augmented and virtual reality is just around the corner.

For investors, that means a once-in-a-lifetime opportunity you don’t want to miss.

 

Good Investing,
Stutman sig
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