US trade war & tariff list aims to hinder China’s high-tech development: expert


China will impose 25 percent in tariffs on 659 US goods worth $50 billion, including soybeans, cars and seafood.

The move came as a tit-for-tat response to the tariffs announced by the Trump  administration Friday morning. An expert  said the US decision does not aim to tackle the trade deficit with China but to block the Chinese government’s efforts in high-tech development.

Tariffs on 545 US goods worth $34 billion will take effect on July 6, involving agricultural products, car parts and seafood, according to a statement released by China’s Ministry of Commerce (MOFCOM) on Saturday morning. Soybeans, which are China’s biggest import from the US in value, are on the list.

Chemicals, medical equipment and energy products from the US will also be subject to 25 percent tariffs, which will be announced at a later date.

The revised list is longer and involves more categories of products than a preliminary list of 106 US goods published by the ministry in April, but the total value of the products remains at $50 billion.

A Chinese commerce expert found that aircraft were removed from China’s new list, which is noteworthy.

“We need aircraft [from the US]. We have to consider the costs of the countermeasures we plan to take,” Bai Ming, deputy director of the Ministry of Commerce’s International Market Research Institute, said on Saturday soon after the Chinese tariffs were announced.

It’s like acting as a soccer referee who will not call out the offenses and let the play continue when the game still benefits the attacking team even though an attacking player is fouled, Bai further explained.

China is one of the fastest-growing civil aviation markets in the world, and 15 to 20 percent of Boeing’s aircraft deliveries are projected to end in the Chinese market over the next two decades, according to Morgan Stanley.

The US has kept changing their mind and ignited a trade war, which China does not want and will firmly oppose, a spokesperson of the MOFCOM said immediately after US took trade measures on China. “This move not only hurts bilateral interests, but also undermines the world trade order.”

“China and the US still have hopes of negotiating and reaching an agreement, as both the tariffs announced by the two countries will not take into effect until next month,” said Wang Jun, deputy director of the Department of Information at the China Center for International Economic Exchanges.

Wang told the Global Times that the removal of aircraft from the new list can be a signal that China still wants to talk, and also aircraft can be a valuable chip in the next round of trade negotiations.

Meanwhile, Wang said the Trump administration’s newly published list is not so much a solution for the trade deficit problem with China as efforts to hinder China’s technology development.

US President Donald Trump on Friday announced 25 percent tariffs on $50 billion in Chinese goods, containing industrially significant technologies related to China’s “Made In China 2025” strategy.

According to a list published by the office of the US Trade Representative, the tariffs will be applied on more than 1,000 types of Chinese goods, including aircraft engine parts, bulldozers, nuclear reactors and industrial and agricultural machinery.

American industry also opposed Trump’s decision.

“Imposing tariffs places the cost of China’s unfair trade practices squarely on the shoulders of American consumers, manufacturers, farmers, and ranchers. This is not the right approach,” US Chamber of Commerce President and CEO Thomas J. Donohue said in a statement posted on the chamber’s website on Friday.

By Zhang Ye Source:Global Times

Related:

Trump’s strategy on China tariffs is doomed to fail, say analysts …

 

 China knows better as Trump tariff strategy tricks US voters

Dealing with the US is difficult, but China can easily
refuse theft and coercion. China will remain with the US through
negotiations and war. If a trade war between the two becomes fierce, the
result will not provide a favorable political environment for President
Trump.

China vows powerful retaliation against US tariffs

‍China will launch an immediate, powerful response to US
tariffs on billions of dollars’ worth of Chinese goods, threatening to
target US goods on the same scale and intensity, a spokesperson for the
Chinese Ministry of Commerce (MOFCOM) said on Friday.

IMF says US trade, fiscal policies could undermine global economy

US President Donald Trump’s trade and fiscal policies are
likely to increase the risks to the US and global economy, the
International Monetary Fund (IMF) said Thursday.

China decides to impose additional tariffs on 50 bln USD of US imports

China has unveiled a list of products from the United
States that will be subject to additional tariffs in response to US
announcement to impose additional duties on Chinese imports.

Related posts:

Japan may have led Malaysia’s Look East
policy of yore, but the stakes are heavily tipped in China’s favour now
as the leader of..

Trapped in US-China trade war when 2 elephantine economices fight …

Did Trump just launch a trade war? 

 American Ban on ZTE offers much food for thought & pain together with ZTE

Xi, Trump discuss China-US cooperation

 Trump and China’s bumpy ride begins

Advertisements

Looking East policy with a twist to China ?


 

Japan may have led Malaysia’s Look East policy of yore, but the stakes are heavily tipped in China’s favour now as the leader of the new world order.

PRIME Minister Tun Dr Mahathir Mohamad (pic) has announced that Malaysia is renewing, or to be more precise, upgrading the Look East policy he adopted as a foreign policy 30 years ago.

It was unveiled after he came to power in 1981 and now, as the premier for the second time, he has picked up the pieces of his past and repackaged it.

His inclination to Japan then was understandable since the country was the rising star of Asia.

Although Look East included South Korea and Taiwan, it basically meant Japan.

There were sound reasons to why Dr Mahathir wanted Malaysia to emulate some of the East Asian characteristics, both economically and ethically.

I think any Malaysian who has visited Japan can vouch for the people’s work ethic, honesty, orderliness, politeness, punctuality, cleanliness, precision, dedication to excellence, innovation and good manners.

Malaysians in Japan feel safe – they rarely get cheated despite being tourists, which is more than can be said for many countries.

Personally, Japan remains my No. 1 holiday destination. Like Dr Mahathir, I have the highest admiration for the Japanese. They are certainly exemplary, and that is indisputable.

Dr Mahathir has continued to have high regard for the Japanese and history seems to be repeating itself.

His Look East Policy shocked and confused the Malaysian foreign ministry, with many officials viewing it as undefined and vague.

The Ministry being left in the dark about the Prime Minister’s move led to it being unaware of how to implement the policy.

Fast forward to 2018. It’s likely that his new batch of ministers were also caught off guard with the revival of the Look East policy, more so when the Foreign Minister has yet to be installed.

Without doubt, Japan is an important partner to Malaysia because we have more than six decades’ ties with the country.

In 2016, Japan ranked Malaysia as its fourth-largest trading partner with bilateral trade standing at RM120bil.The strong trade and investment relations between the nations are also underpinned by the Malaysia-Japan Economic Partnership Agreement.

The latest Malaysia-Japan collaboration includes the Bukit Bintang City Centre project, which has managed to attract the leading real estate group in the Land of the Rising Sun, Mitsui Fudisan Co Ltd, to invest in what will be the mega project’s RM1.6bil retail mall.

But Dr Mahathir’s choice of his first foreign visit to Japan as PM has raised many eyebrows. Perhaps it was just the coincidental timing of the annual Nikkei Conference, which he attends without fail.

I was told that his office had informed the Chinese Embassy here, as a matter of courtesy, to avoid reading into the matter, given the long, bitter rivalry between the two nations.

Dr Mahathir was also visiting Japan after a series of announcements, calling for the review, if not cancellation or postponement, of several mega Chinese-driven projects in Malaysia.

The method of repayments with China, involving huge amounts of money, has, of course, been called into question and condemned. One critic even described the terms as “strange.”

It’s apparent the situation is delicate now, and we need to tread carefully because we are dealing with a global leader.


Powerful alliance

The PM admitted that his government was “dealing with a very powerful country. As such, matters affecting both parties will require friendly discussions”.

Former finance minister Tun Daim Zainuddin also said that Malaysia will carefully handle business contracts with China made by the previous administration.

In an interview with The Star, Daim admitted that the economic superpower is a friend to Malaysia.

“China is very important to us,” the Council of Eminent Persons spokesman said.

“We enjoy very close relations, but unfortunately, under the previous administration, a lot of China contracts are tainted, difficult to understand and the terms are one-sided,” said Daim.

There is plenty at stake here. The world has also changed, and Malaysia needs to be mindful of its diplomatic move. These are sensitive times, and to the Chinese, the issue of “face” is an important one.

Whether we like it or not, the whole world is looking towards China because this is where the fundamental building blocks of a future global digital economic model is being curated and built.

Japan’s economy, on the other hand, has been in regression over the last two decades, and open data is easily available to prove this point. Just google it.

That aside, China is Malaysia’s largest trading partner in Asean, especially after Malaysia-China bilateral transactions rose as much as 28% to RM139.2bil in 2017’s first half.

The Chinese government has been very positive with bilateral relations with Malaysia over the years, and this great foundation is what we must build on. It doesn’t matter who the Malaysian Prime Minister is now.

With Ali Baba and Tencent coming to Malaysia, SMEs – which comprise more than 95% of Malaysian business entities – exporting to China will be a huge foreign trade opportunity.

Of all the Asean nations, Malaysia has the largest pool of businessmen who speak the relevant Chinese dialects and understand the culture. But it’s not just the Malaysian Chinese businessmen who stand to benefit, but other races too.

Let’s not forget that China will be under steady stewardship for the coming decade since Xi Jinping has strengthened his position as the premier. And with Dr Mahathir rightfully announcing that Malaysia will be a neutral country, this will mean a stable foreign policy which is crucial for the rules of engagement.

The same can’t be said of Japan, though, as it has a history of turbulent domestic politics, with frequent changes in leadership.

Truth be told, China has outperformed Japan. The republic has become a model of socio-economic reform that connects, not only the past with the present, but more importantly, can rewrite the history of human development into our common future.

The One Belt, One Road initiative is the future. It was also reported that China has overtaken Japan in global patent applications filed in 2017 and is closing in on the United States, the long-standing leader, the World Intellectual Property Organization said in a report.

With 48,882 filings, up 13.4% from a year earlier, Chinese entities came closer to their American counterparts, which filed 56,624 applications. Japanese applicants ranked third with 48,208 demands for patents, up 6.6% from a year ago, the report, released Wednesday, revealed. According to the Geneva-based institution, China will likely overtake the US as the world’s largest patent applicant within three years.

“This rapid rise in Chinese use of the international patent system shows that innovators there are increasingly looking outward, seeking to spread their original ideas into new markets as the Chinese economy continues its rapid transformation,” WIPO director-general Francis Gurry said.

The overall filings in 2017 were 243,500, up 4.5% from a year earlier.

Data indicates that China and Japan were key drivers of the surge in applications.

“This is part of a larger shift in the geography of innovation, with half of all international patent applications now originating in East Asia,” Gurry reportedly said.

Two Chinese firms topped the list, led by Huawei Technologies Co with 4,024 patent applications and ZTE Corp with 2,965 submissions. Intel Corp of the United States is placed third with 2,637 filings, followed by Mitsubishi Electric Corp with 2,521.

China has also declared its ambition to equal the US in its AI capability by 2020 and to be number one in the world by 2030.

If there is a single country to take a cue from, then it can only be China. Look at its growth since 1957, 1967, 1987, 1997 and 2017, and see the strides it has made in the shortest time. Remember, China was once poor and backwards. Many Malaysian Chinese used to send money back to their families in China, especially in 1950s and 1960s, and even 1970s. But look where the country is now.

Malaysia is in pole position to take advantage since our neighbour Singapore has always been perceived to be too US-centric. It will be a waste if we let politics get in the way, as no one can dispute that China now plays a respected and vital role.

Anyone can tell that China will reshape the new world order. It is the new Middle Kingdom and is the country to look to.

And Dr Mahathir should pick up on this because at the end of his trip to Japan, the press bombarded him with the predictable and nagging question – when will he be visiting China?

By Wong Chun Wai On The Beat

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.
Related Links:

Beijing tops again in patent applications worldwide – ASEAN/East Asia …

China leads patent applications worldwide | Business

R&D input ‘2nd-highest in the world’ 

China Dominates Top Western Economies in Patent … – VOA News

China dominates top Western economies in patent … – Phys.org

China dominates top economies in patent applications | Asia Times

China applying for more patents than ever before as companies push …

www.scmp.com › Business › Companies

Source: World Intellectual Property Organization

Related Posts: :

  Illustration: Liu Rui/GT Newly-elected Malaysian Prime Minister Mahathir Mohamad has decided to scrap the Kuala Lumpur-Singapore Rail…

Pooch and prejudice: years of the Dog 2018 and Pig 2019

Singing and dancing to world domination

 

When tongues wag and tales grow: be aware of politicians gone to the dogs!

 

For the love of Datuk titles

 

Money games, Earn money nothing can replace the old-fashioned hard-work, honesty; learn Jack Ma’s way

The new China Syndrome: don’t tell Chinese balik Tongsan, Tonggsan coming to Malaysia

US Federal Reserve rate rise, Malaysia and regional equity markets in the red


 

Fed’s big balance-sheet unwind could be coming to an early end

NEW YORK: The Federal Reserve’s balance sheet may not have that much further to shrink.

An unexpected rise in overnight interest rates is pulling forward a key debate among US central bankers over how much liquidity they should keep in the financial system. The outcome will determine the ultimate size of the balance sheet, which they are slowly winding down, with key implications for US monetary policy.

One consequence was visible on Wednesday. The Fed raised the target range for its benchmark rate by a quarter point to 1.75% to 2%, but only increased the rate it pays banks on cash held with it overnight to 1.95%. The step was designed to keep the federal funds rate from rising above the target range. Previously, the Fed set the rate of interest on reserves at the top of the target range.

Shrinking the balance sheet effectively constitutes a form of policy tightening by putting upward pressure on long-term borrowing costs, just as expanding it via bond purchases during the financial crisis made financial conditions easier. Since beginning the shrinking process in October, the Fed has trimmed its bond portfolio by around US$150bil to US$4.3 trillion, while remaining vague on how small it could become.

This reticence is partly because the Fed doesn’t know how much cash banks will want to hold at the central bank, which they need to do in order to satisfy post-crisis regulatory requirements.

Officials have said that, as they drain cash from the system by shrinking the balance sheet, a rise in the federal funds rate within their target range would be an important sign that liquidity is becoming scarce.

Now that the benchmark rate is rising, there is some skepticism. The increase appears to be mainly driven by another factor: the US Treasury ramped up issuance of short-term US government bills, which drove up yields on those and other competing assets, including in the overnight market.

“We are looking carefully at that, and the truth is, we don’t know with any precision,” Fed chairman Jerome Powell told reporters on Wednesday when asked about the increase. “Really, no one does. You can’t run experiments with one effect and not the other.”

“We’re just going to have to be watching and learning. And, frankly, we don’t have to know today,” he added.

But many also see increasingly scarce cash balances as at least a partial explanation for the upward drift of the funds rate, and as a result, several analysts are pulling forward their estimates of when the balance sheet shrinkage will end.

Mark Cabana, a Bank of America rates strategist, said in a report published June 5 that Fed officials may stop draining liquidity from the system in late 2019 or early 2020, leaving US$1 trillion of cash on bank balance sheets. That compares with an average of around US$2.1 trillion held in reserves at the Fed so far this year.

Cabana, who from 2007 to 2015 worked in the New York Fed’s markets group responsible for managing the balance sheet, even sees a risk that the unwind ends this year.

One reason why people may have underestimated bank demand for cash to meet the new rules is that Fed supervisors have been quietly telling banks they need more of it, according to William Nelson, chief economist at The Clearing House Association, a banking industry group.

The requirement, known as the Liquidity Coverage Ratio, says banks must hold a certain percentage of their assets either in the form of cash deposited at the Fed or in US Treasury securities, to ensure they have enough liquidity to deal with deposit outflows.

The Fed flooded the banking system with reserves as a byproduct of its crisis-era bond-buying programs, known as quantitative easing, to stimulate the economy. The money it paid investors to buy their bonds was deposited in banks, which the banks in turn hold as cash in reserve accounts at the Fed.

In theory, the unwind of the bond portfolio, which involves the reverse swap of assets between the Fed and investors, shouldn’t affect the total amount of Treasuries and reserves available to meet the requirement. The Fed destroys reserves by unwinding the portfolio, but releases an equivalent amount of Treasuries to the market in the process.

But if Fed supervisors are telling banks to prioritise reserves, that logic no longer applies. Nelson asked Randal Quarles, the Fed’s vice-chairman for supervision, if this was the Fed’s new policy. Quarles, who was taking part in a May 4 conference at Stanford University, said he knew that message had been communicated and is “being rethought”.

If Fed officials do opt for a bigger balance sheet and decide to continue telling banks to prioritise cash over Treasuries, it may mean lower long-term interest rates, according to Seth Carpenter, the New York-based chief US economist at UBS Securities.

“If reserves are scarce right now, and if the Fed does stop unwinding its balance sheet, the market is going to react to that, a lot,” said Carpenter, a former Fed economist. “Everyone anticipates a certain amount of extra Treasury supply coming to the market, and this would tell people, ‘Nope, it’s going to be less than you thought’.” — Bloomberg

Malaysia and regional equity markets in the red

 

In Malaysia, the selling streak has been ongoing for almost a month. As of June 8, the year to date outflow
stands at RM3.02bil, which is still one of the lowest among its Asean peers. The FBM KLCI was down 1.79 points yesterday to 1,761.

PETALING JAYA: It was a sea of red for equity markets across the region after the Federal Reserve raised interest rates by a quarter percentage point to a range of 1.75% to 2% on Wednesday, and funds continued to move their money back to the US. This is the second time the Fed has raised interest rates this year.

In general, markets weren’t down by much, probably because the rate hike had mostly been anticipated. Furthermore for Asia, the withdrawal of funds has been taking place over the last 11 weeks, hence, the pace of selling was slowing.

The Nikkei 225 was down 0.99% to 22,738, the Hang Seng Index was down 0.93% to 30,440, the Shanghai Composite Index was down 0.08% to 3,047.34 while the Singapore Straits Times Index was down 1.05% to 3,356.73.

In Malaysia, the selling streak has been ongoing for almost a month. As of June 8, the year to date outflow stands at RM3.02bil, which is still one of the lowest among its Asean peers. The FBM KLCI was down 1.79 points yesterday to 1,761.

Meanwhile, the Fed is nine months into its plan to shrink its balance sheet which consists some US$4.5 trillion of bonds. The Fed has begun unwinding its balance sheet slowly by selling off US$10bil in assets a month. Eventually, it plans to increase sales to US$50bil per month.

With the economy of the United States showing it was strong enough to grow with higher borrowing costs, the Federal Reserve raised interest rates on Wednesday and signalled that two additional increases would be made this year.

Fed chairman Jerome H. Powell in a news conference on Wednesday said the economy had strengthened significantly since the 2008 financial crisis and was approaching a “normal” level that could allow the Fed to soon step back and play less of a hands-on role in encouraging economic activity.

Rate hikes basically mean higher borrowing costs for cars, home mortgages and credit cards over the years to come.

Wednesday’s rate increase was the second this year and the seventh since the end of the Great Recession and brings the Fed’s benchmark rate to a range of 1.75% to 2%. The last time the rate reached 2% was in late 2008, when the economy was contracting.

“With a slightly more aggressive plan to tighten monetary policy this year than had previously been projected by the Fed, it will narrow our closely watched gap between the yield rates of two-year and 10-year Treasury notes, which has recently been one of a strong predictor of recessions,” said Anthony Dass, chief economist in AmBank.

Dass expects the policy rate to normalise at 2.75% to 3%.

“Thus, we should potentially see the yield curve invert in the first half of 2019,” he said.

So what does higher interest rates mean for emerging markets?

It means a flight of capital back to the US, and many Asian countries will be forced to increase interest rates to defend their respective currencies.

Certainly, capital has been exiting emerging market economies. Data from the Institute of International Finance for May showed that emerging markets experienced a combined US$12.3bil of outflows from bonds and stocks last month.

With that sort of global capital outflow, countries such as India, Indonesia, the Philippines and Turkey, have hiked their domestic rates recently.

Data from Lipper, a unit of Thomson Reuters, shows that for the week ending June 6, US-based money market funds saw inflows of nearly US$34.9bil.

It makes sense for investors to be drawn to the US, where the economy is increasingly solid, coupled with higher yields and lower perceived risks.

Hong Kong for example is fighting an intense battle to fend off currency traders. Since April, Hong Kong has spent at least US$9bil defending its peg to the US dollar. Judging by the fact that two more rate hikes are on the way this year, more ammunition is going to be needed.

Hong Kong has the world’s largest per capita foreign exchange reserves – US$434bil more in firepower.

By right, the Hong Kong dollar should be surging. Nonetheless, the currency is sliding because of a massive “carry trade.”

Investors are borrowing cheaply in Hong Kong to buy higher-yielding assets in the US, where 10-year Treasury yields are near 3%.

From a contrarian’s perspective, global funds are now massively under-weighted Asia.

With Asian markets currently trading at 12.3 times forward price earnings ratio, this is a reasonable valuation at this matured stage of the market.

By Tee Lin Say StarBiz

Related:

 

PBOC Seen Mirroring Fed With Hike While Keeping Other Taps Open  Bloomberg

  

Foreign investors more willing to hold yuan assets: FX regulator

Reuters ·

 

 Faster Indian Inflation Puts Analysts on Watch for Rate Hike – Bloomberg

Abenomics’ impact fading at sensitive moment for Japanese economy –
Business News

 

Bank Negara governor a short but memorable stint – Business News | The Star Online

Malaysia should first check yen loan terms, advises economist – The Star

 

 

Related posts:

 

Youth unemployment hit record high in 2017: MIDF Research


Young and jobless | Invest Cyberjaya

Graduate unemployment was 45.5 of overall jobless amid skills mismatch and demand for low-skilled jobs, says MIDF Research

PETALING JAYA: Youth unemployment was at its highest ever at 10.8% in 2017, of which graduate unemployment constituted about 40.5% or 204,000 of total unemployment due to skills mismatch amid a backdrop where demand for low-skill jobs continues to reign – which in turn may leave the government falling short of its 35% skilled workforce target by 2020, according to MIDF Research.

For every 100 jobs available, there are 76 jobs for elementary occupations and 10 jobs for plant and machinery operators and assemblers, which leaves 14 jobs for the high-skill and other low-skill occupations.

About 86.3% of job vacancies in 2017 were for low-skill jobs which was deemed less suitable for a fresh graduate while high-skill jobs such as professional, technicians and associate professionals, comprised 4.1% of the total job vacancies.

It noted that the high single- and double-digit unemployment rate among youth, defined as those between 15 and 24 years old, as being normal not only in Malaysia, but in Europe, the US and South Korea.

The high youth unemployment rate was mainly contributed by soaring graduate unemployment, despite the steady increase in tertiary-educated workers joining the workforce, which was also the fastest growing segment at 4.1%, followed by secondary at 3.2% and no formal education by 0.3%.

Employment share of professionals and technicians and associate professionals improved to 12.2% and 10.5% in 2017 expanding at 0.8% and 4.6% respectively.

“In terms of share, the rising stake of skilled-worker or tertiary-educated is in line with the Eleventh Malaysia Plan. Under the plan, the government estimated skilled-worker to total workforce ratio to touch 35% by 2020. Nevertheless, we view the ratio is not expected to reach the target at the current pace,” MIDF Research said.

“We forecast the skilled-worker ratio to register at 32% by 2020. Continuous improvement in production efficiency, resource allocations and better technology adoptions under the Industry 4.0 will facilitate and accelerate the productivity level in Malaysia in the long run,” it added.

The overall unemployment rate in the country remained low at 3.4% last year.

Malacca remains as the state with the lowest youth unemployment rate for the seventh consecutive year at 2.9% while Sabah recorded the highest at 13.5% in 2017.

Meanwhile, Selangor the largest employer, 23.2% of total national employment saw overall unemployment rate of 2.8% and youth unemployment rate of 9.4% last year.

The overall youth unemployment rate across all states registered poor performances compared with the previous year, 2016.

In 2018, the youth unemployment rate is expected to fall slightly to 9.9% and the overall unemployment rate to stand at 3.3%.

The job market outlook for commodity-based sectors is expected to improve in tandem with recovering commodity prices. This in line with anticipation of improvement in global trade, and higher demand for export products is expected to benefit industries such as electrical & electronics and mining.- sunbiz@thesundaily.com
Related:

Youth unemployment rate still high | The Edge Markets

 

S. Korea’s youth jobless rate hits record high, with those unemployed …

Youth Unemployment Soars Despite Gov’t Efforts – The Chosun Ilbo …

Rising unemployment among university graduates worrying …

[PDF]Youth Unemployment Rate Remain High – MIDF

May 9, 2017 – Based on the latest developments in global and domestic economies, we anticipate youth unemployment rate to slightly fall to 10.1% while overall unemployment rate to stand at 3.3% in 2017. Youth unemployment rate hits 10.5% with number of unemployed youth reached 273,400 persons in 2016. Youth …

 

Youths told not to be too dependent on govt for jobs – BorneoPost Online

 

Related posts:

 

Job drive woos Bentong youths home – Nation 

 Malaysia’s low wages: low-skilled, low productivity,  low quality, reliance on cheap foreigner workders…


 

People-centric logo: The Chinese character

for ‘people’, rén, dominates the entrance to its office. The
growing usage of technolog…

 

 

Malaysia needs structural reforms says global investor 

Arrest decline in productivity and competitiveness in Malaysia

Corruptions, Conflict of interests, politicians and Malaysian bloated civil service 

Structural issues including education are holding Malaysia back

Huge Civil Service Size, Attractive Emoluments and Benefits are costing Malaysia ! 

Prized job: While long-term security like the pension scheme free healthcare and easy loans have been among the perks of joining the .
..

Bloated civil sevice in Malaysia must cut down the size and salaries 

Call on the Government to downsize the country’s bloated civil service

Ministers may face conflict of interest, says Tunku Abdul Aziz:  “If you have no power, you cannot abuse it. Civil servants hav…

Supersized and overweight civil servants

Apr 6, 2016 So if both the US and Malaysian Governments couldn’t stem the fat tide in their
respective countries, who can? … Putrajaya the obese-city!

Strong navy steers more balanced, steady rise of China


 https://youtu.be/e9O21AljMow

 

On April 12, Chinese President Xi Jinping, who is also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, made important remarks during a naval parade held in the South China Sea. The event is the largest maritime military parade in the history of the People’s Republic of China, showcasing a new height of the People’s Liberation Army Navy via its Liaoning carrier battle group and the new-generation nuclear submarine. China’s ability to defend world and regional peace has reached another milestone.

During his speech, Xi noted that the mission of building a strong navy has never been more urgent. This is crucial to point out in today’s international environment and his tone carried a robust sense of mission.

Xi has expressed in several key reports that China is closer than ever to achieving the great rejuvenation of the Chinese nation. However, history reminds us that the closer we are to accomplishing a glorious goal, the more the pressure and risk. Building a strong navy, as well as national defense, has never been more significant to China.

After 40 years of reform and opening-up, China has risen to become the world’s second largest economy. In this process, China has further advanced its unstoppable economic potential. However, China’s elevated status, accompanied by its incredible progress, has attracted both friendly and hostile gestures. Thus, catching up in national defense is necessary to attain balanced growth. For any big nation, strong economic development without balanced efforts in national defense is a dangerous combination. This might give other powers the idea and temptation to subdue China with non-economic methods.

A country’s navy is considered the force that bears most pressure, while also being the most active in the modern military. Despite all the military forces of a country, the navy usually stands at the forefront in crucial moments. The technologies for naval forces are complex and at a high cost, representing the refined strength of its country. Strong naval forces only belong to a powerful country, reflecting the accumulation of a nation’s strength, and indicating the nation’s future and destiny.

The step-by-step development of Chinese navy is steady and strong. Through the South China Sea military parade, Chinese people can see that part of China’s economic strength is quickly converting to military strength. We can also predict that China’s ability to convert between its strengths will be stronger in the future.

The logic of maintaining peace is different among major, mid-sized and small countries. China must objectively understand the security situations we are dealing with and build the People’s Liberation Army (PLA) to show that it projects power and focuses on maintaining peace. This is an urgent task which requires racing against time.

China must ignore the noise of the “Chinese military threat” theory from some Western countries. The theory is a misrepresentation of China’s role as the world’s second-largest economy and its role in securing global peace. The theory is also a discrimination to China’s status as one of the world’s major powers.

To build a top-tier navy, China has a long way to go. To understand the enormous challenges China faces in building a blue-water navy, one should look at how other countries monitor and scrutinize China’s foreign ports and naval supply checkpoints. Furthermore, China’s navy needs to accumulate vast experience to become an effective instrument in China’s toolbox for deterrence.

There are two essential strategic questions for China: How do we show others our determination in defending national interest under the thesis of ‘China’s peaceful rise’? How do we communicate our simultaneous dedication to world peace and resolution to fight aggression?

Many WWII-era ships are still commissioned by other navies around the world, and yet more than half of the ships participating in this parade started their service around the time of the 18th National Congress of the Communist Party of China. The Chinese navy has rapidly developed, and we believe it will continue to do so until it reaches its maturity. China will be more secure and the world more peaceful as the Chinese navy sails into the deep blue sea. – Global Times

Malaysia’s Corruption Perception Index worsen seven rungs


Lawyers participating in a peaceful rally, calling for the Sedition Act
to be repealed, in Kuala Lumpur in 2014. The law was used in the same
year against, among others, a student activist, and another seven
people, including a journalist, were being investigated under the act. –
EPA pic, February 22, 2018.

Need to relook whistleblowing laws

KUALA LUMPUR: The recent conviction of a whistleblower and the absence of political financing laws are among the reasons that affected Malaysia’s global anti-corruption scores, Transparency InternationaI Malaysia (TI-M) president Datuk Akhbar Satar said when presenting the 2017 Corruption Perception Index (CPI) today.

Malaysia ranked 62 among 180 countries in the CPI last year, dropping from 55th spot in 2016.

The index put Malaysia in the same spot as Cuba, with a score of 47 out of 100.

In 2016, Malaysia ranked 55 with a score of 49.

The CPI is a global aggregate index capturing corruption perception in the public sector worldwide based on expert opinions using a scale of 0-100, with a smaller score denomination denoting a higher level of corruption.

“This is the worst score in the last five years and the lowest ranking since CPI was introduced in 1994.”

Akhbar said contributing factors to such poor perception of Malaysia include unresolved cases involving 1Malaysia Development Berhad (1MDB), absence of political financing laws and corporate liability provisions in anti-graft laws.

“The reason is simple … the 1MDB and SRC International Sdn Bhd issues, Felda Global Ventures Holdings Bhd scandal and also the conviction of PKR vice-president Rafizi Ramli for whistleblowing.”

Akhbar stressed that Malaysia has to relook into its whistleblowing laws to ensure there is proper protection for those who expose corrupt activities.

“It is very sad that whistleblowers get arrested and punished here when most other countries have tried to enact whistleblowing laws to protect them.

“Here, we are at the opposites. If you don’t comply with the whistleblowing policy and use the media to expose corruption, then you are not protected.

The top five countries in the 2017 index were New Zealand (89) and Denmark (88), followed by Finland, Norway and Switzerland (85).

The index also revealed that more than two-thirds of countries worldwide scored below 50, with an average score of 43.

Countries at the bottom of the index were Yemen, Sudan, Afghanistan, Syria, South Sudan and Somalia.

Meanwhile, MACC honorary commissioner and former TI-M president Tan Sri Ramon Navaratnam expressed disappointment on Malaysia’s score.

“All the good work done by MACC to robustly fight corruption has been negated by the apparent inability to do more to contain ‘grand corruption’, which matters in the view of TI,” he said.
By Karen Arukesamy newsdesk@thesundaily.com

Related articles

CPI drop deeply disappointing – theSundaily

Malaysia falls seven spots to 62 in 2017 global graft index

Malaysia drops further in global graft index, worst in 5 years

CPI ranking sign of corruption getting worse in Malaysia

 

Corruption Perceptions Index 2017 

https://www.transparency.org/news/feature/corruption_perceptions_index_2017

This year’s Corruption Perceptions Index highlights that the majority of countries are making little or no progress in ending corruption, while further analysis shows journalists and activists in corrupt countries risking their lives every day in an effort to speak out.

The index, which ranks 180 countries and territories by their perceived levels of public sector corruption according to experts and businesspeople, uses a scale of 0 to 100, where 0 is highly corrupt and 100 is very clean. This year, the index found that more than two-thirds of countries score below 50, with an average score of 43. Unfortunately, compared to recent years, this poor performance is nothing new.

https://e.infogram.com/1c09a6f5-16d8-4bf7-8769-9875b9569639?src=embed

Share

http://www.transparency.org/cpi2017

This year, New Zealand and Denmark rank highest with scores of 89 and 88 respectively. Syria, South Sudan and Somalia rank lowest with scores of 14, 12 and 9 respectively. The best performing region is Western Europe with an average score of 66. The worst performing regions are Sub-Saharan Africa (average score 32) and Eastern Europe and Central Asia (average score 34).

Download CPI 2017 XLSX dataset

Since 2012, several countries significantly improved their index score, including Côte d’Ivoire, Senegal and the United Kingdom, while several countries declined, including Syria, Yemen and Australia.

Research analysis

Further analysis of the results indicates that countries with the least protection for press and non-governmental organisations (NGOs) also tend to have the worst rates of corruption.

Every week at least one journalist is killed in a country that is highly corrupt.

The analysis, which incorporates data from the Committee to Protect Journalists, shows that in the last six years, more than 9 out of 10 journalists were killed in countries that score 45 or less on the index.

Living at the edge of chaos, climate change is not fake science


 

Nature’s fury: A car dealership is covered by Hurricane Harvey floodwaters near Houston, Texas. The chaos caused by the hurricane proves that climate change is not fake science. — Reuters

THIS month, two Category 4 hurricanes hit the United States within 17 days of each other. In Asia, North Korea is threatening nuclear Armageddon, and floods and famine are putting thousands of lives at risk from Bangladesh to Yemen. How can one survive in this chaotic era?

A first step must be to make sense of the apparent chaos. Hurricanes Harvey and Irma have proved that climate change is not fake science, but real threats to home and security. When hailstones the size of golf balls hit Istanbul in the middle of summer, even the agnostics accept that climate change is serious business.

The biggest uncertainty that has hit Asia recently is the shock that North Korea has not only developed possibly a hydrogen bomb, but also the missile capability to deliver it even to the United States. This has changed the geopolitical balance not only in North Asia, but globally because it is no longer possible for the United States alone to contain nuclear proliferation.

Physics teaches us that chaos is often a characteristic of transition from one order to another. Chaos is also a pattern in which there is apparently no discernible pattern.

But there is a seismic transition from a unipolar world led by the United States to a multi-polar world of competing powers and ideology, particularly after the 2007 global financial crisis. As the share of US GDP in the world declines relative to the rest, the rise of China, India and increasing assertion by Russia and non-state players like IS means that the United States’ ability to dominate militarily and ideologically is being challenged.

At the same time, increasing stresses from social inequalities and paranoia of terror, immigration and job loss have tilted the United States to become more inward looking. The Trump administration has dramatically begun to dismantle the neoliberal order of multilateral trade and finance that shaped US foreign policy since the end of the Second World War.

There is a raw open division within the United States in outlook and values. The Democratic Left believes in maintaining the old order of moral leadership on human rights, democracy and multilateral global stability and prosperity. The Republican Right questions these beliefs and prefers America First, negotiating bilaterally to achieve that premier status.

Earlier this year, the Pentagon asked the Rand Corporation to conduct a review on “Alternative Options for US Policy toward the International Order”. The key questions for the New Global Order are: Who sets the rules and how binding are the rules?

The study breaks the future order into two camps of rule-makers – the US and its allies or a concert of great powers. Under such a division, there are two conditions where rules are binding – one dominated by the US camp to enforce rules and the other where the great powers agree to a global constitutional order enforced by institutions. The other two conditions where rules are not binding involve a coalition of states aligned to counteract against revisionism and a new concert of great powers.

The immediate problem with the Rand categorisation of New Order Visions is that the existing liberal, rules-based order is not being challenged by others, but by the US itself.

First, after German Chancellor Angela Merkel’s comment earlier this year that Europe must begin to look after its own interests, it is no longer clear that America’s traditional allies are going to follow the US leadership when there are serious disagreements on trade, climate change and immigration. It is no coincidence that the largest trade imbalances are no longer between China or oil producers with the US, but between Europe and the United States. Germany alone is running a current account surplus equivalent to around 8% of GDP.

Second, within the Middle East, alliances are shifting almost by the day. The quarrel between Saudi Arabia and Qatar has riven the Gulf Cooperation Council, while Turkey is playing an increasingly pivotal role within the shifting alliances.

Third, North Korea’s bid for nuclear power membership, despite being a small state, means that Great Powers may have to accommodate new players whether they like it or not.

Fourth, climate change in the form of Hurricanes Harvey and Irma demonstrate that nature can impose larger and larger economic losses on nations and regions, which will require global public goods that the current order is neither willing to fund, nor able to agree on how to address. The economic losses from Harvey alone is estimated at US$180bil, equivalent to the annual GDP of a middle-income economy. The existing multilateral bodies such as the United Nations and the World Bank are facing serious resource shortages relative to these new global demands.

The bottom line is that the current order has neither the resources nor the collective will to enforce rules when the human population growth puts increasing competition for scarce water, food and territorial spaces. Chaos arises from the breakdown of rules and borderlines.

In short, globalisation of trade, information and human migration has meant that traditional borders in many regions are becoming non-enforceable. For example, it is 101 years since the 1916 Sykes-Picot Agreement divided up the collapsing Ottoman Empire into British, French and Russian spheres of interest and eventual control. These borders were drawn and enforced by the Great Powers through their military superiority.

Seen from the long lens of history, with the Great Powers being unwilling to put troops on the ground to enforce borders drawn up under the colonial era, these artificial borders are failing.

A hallmark of the times is that even the best of think tanks cannot map out how to navigate through this era of disruptive technology, unpredictable climate and shifting alliances and interests. What history teaches us is that the fault lines will be at the borderlands, at the confluence of emerging forces and stresses.

We should therefore be prepared for not only disruption at the borderlands of physical space, but within the realms of cyberspace.

By Andrew Sheng

Tan Sri Andrew Sheng writes on global issues from an Asian perspective.

Related Links:

Proton CEO to resign Sept 30, China’s Geely to nominate CEO for main unit –
Business News

Related posts:

Humans Are Destroying the Environment  PETALING JAYA: They are supposed to be guardians of the environment, and yet “certain enforcem…

Behind BJ Cove houses at Lintang Bukit Jambul 1 is an IJM Trehaus Project.  Approximate Coordinates : 5°20’38.47″N,100°16′..

%d bloggers like this: