New economic thinking

Fung Global InstituteLAST weekend, over 400 top economists, thought leaders, three Nobel Laureates and participants gathered in Hong Kong for the fourth Annual Institute for New Economic Thinking (INET) conference, co-hosted by the Fung Global Institute, entitled “Changing of the Guard?”

So what was new?

In the opening session, Dr Victor Fung, founding chairman of Fung Global Institute, quoted Henry Kissinger as saying, “Americans think that for every problem, there is an ideal solution. The Chinese, and Indians and other Asians think there may be multiple solutions that open up multiple options.”

That quote summed up the difference between mainstream economic theory being taught in most universities and the need to build up a new curriculum that teaches the student to realise that there is no flawless equilibrium in an imperfect world and that there is no “first-best solution”.

Instead, what is important is to teach the aspiring economist to ask the right questions, and to question what it is that we are missing in our analysis. It is important to remember that theory is not reality, it is only a conceptualisation of reality.

Nobel Laureate Friedrich Hayek, one of the leading thinkers on open societies and free markets, explained why the practice of mainstream economics is flawed. In 1977, he said, “A whole generation of economists have been teaching that government has the power in the short run by increasing the quantity of money rapidly to relieve all kinds of economic evils, especially to reduce unemployment.

Unfortunately this is true so far as the short run is concerned. The fact is that such expansions of the quantity of money, which seems to have a short-run beneficial effect, become in the long run the cause of a much greater unemployment. But what politician can possibly care about long-run effects if in the short run he buys support?”

Sounds familiar on present day quantitative easing?

In his 1974 Nobel Laureate Lecture entitled “The Pretense of Knowledge”, Hayek showed healthy scepticism: “This failure of the economists to guide policy more successfully is closely connected with their propensity to imitate as closely as possible the procedures of the brilliantly successful physical sciences an attempt which in our field may lead to outright error.”

Hayek understood what is today recognised as quantitative model myopia. What cannot be easily measured quantitatively can be ignored. Then it is a small step to assume that what can be ignored does not exist. But it is precisely what cannot be measured and cannot be seen the “Black Swan” effect that can kill you.

In other words, economists must deal with the real world of asymmetry information, that there exists Knightian uncertainty, named after University of Chicago economist Frank Knight, what we call today unknown unknowns.

Unknown unknowns arise not just from accidents of Mother Nature, but from the unpredictability of human behaviour, such as market disorder, which is clearly complex and ever-changing.

If unknown unknowns are common in real life, then a lot of the economic models that appear to give us precise answers may be wrong. In other words, for every question, there is no unique answer and the solutions are “indeterminate”.

George Soros, who helped found INET, explained his theory of reflexivity based on the complex interaction between what he called the cognitive function (human conception of reality) and the manipulative function (the attempt by man to change reality).

His theory of reflexivity in markets differs from mainstream general equilibrium theory in one fundamental aspect. General equilibrium models assume that market systems are self-equilibrating, going back to stable state. Borrowing from engineering systems theory, we now know that this is a situation of negative feedback a system that gets disturbed fluctuates smaller and smaller till it returns to stable state.

The trouble with nature and markets is that positive feedback can also happen. The fluctuations get larger and larger until the system breaks down. Nineteenth century Scottish scientist James Maxwell discovered that steam engines can explode if there is no governor (or automatic valve) to control the steam building up.

At about the same time, English bankers learnt that banks can go into panic regularly without the creation of a central bank to regulate the system. Markets therefore need a third party the state to be the system “governor”. Free market believers think that the market will take care of itself. John Maynard Keynes was the first to recognise that when free markets get into a liquidity trap, the state must step in to stimulate expenditure and get the economy out of its collective depression.

In the 21st century, we have evolved beyond Keynes and free market ideology. Belief in unfettered markets has created a world awash with liquidity and leverage, but the capacity of advanced country governments to intervene Keynesian style has been constrained by their huge debt burden.

Larry Summers has pointed out that Keynes invented not a General Theory, but a Special Theory for governments to intervene to get out of the liquidity trap. The fact that we are still struggling with the liquidity trap means that economists are searching for new solutions, such as borrowing from psychology to explain economic behaviour.

The INET conference introduced the thinking of French literary philosopher, Rene Girard, and his theory of memetic desire, to explain how social behaviour more often than not get into unsustainable positive feedback situations, either excessive optimism or pessimism. How do you get out of such situations? Girard introduced the concept of sacrifice. We will have to wait for the next conference to explore this new angle.

Intuitively, all life is a contradiction. The sum of all private greed is not a public good. It does not add up. Someone has to sacrifice, either the public or a leader.

Schumpeter’s great insight about capitalism is that there is creative destruction. He only restated the old Asian philosophy that change is both creative and destructive. But out of change comes new life.

In sum, contradictions are creative. What is new is often old, but what is old can be new.

Tan Sri Andrew Sheng is president of Fung Global Institute.

Intellectual property ownership


The Government is spending a huge sum of money on research and development, especially in the areas of pure sciences, engineering, medical sciences and social sciences, including education, management, and sociology field.

The search for knowledge is the ever evolving nature of human beings, especially academicians whose livelihood depends on the depth, variety and impactful research they are embarking on.

Government-sponsored research grants always encourage developing human capital by involving potential postgraduate students in the research together with their academic supervisors who have sound track record of research and publications in their research domain.

Usually, the academic supervisors with their vast experience, exposure and reading in the areas of their interest, will co-develop the research framework with their postgraduate candidates in the initial stage of the research.

The postgraduate candidates may further fine tune the research framework and perform further rigorous testing before it is ready for data collection.

Once the data collection is completed and fruitful findings are established, the research framework becomes the intellectual property of the designers and the authors once it is published in a peer reviewed and high impact journal.

The issue of ownership of the intellectual property arises when it comes to primary authorship and supporting authorship if it is submitted for a journal publication or chapters in a book or even for a book publication.

There are many schools of thought to explain this, but, one thing to be remembered, treasured and cherished by those involved in the research is the synergised teamwork and wonderful relationship between the postgraduate candidate and the mentor that had created such a valuable intellectual property.

Can we allow such a noble relationship to be smeared or broken by raising ownership issues of the intellectual property and sequencing the authorship for the journals and books? Does the authorship sequence have any value if the relationship is broken or belittled?

Since there is no single doctrine to dictate who should be the primary author and the secondary author or third author, as all these involve emotions and ego. The act of producing a film based on a storybook is a good analogy.

When producing a film based on a good story, the whole team – director, photographer, stuntman, etc, put in effort to make the movie a success.

For example, the film Harry Potter, directed by David Heyman originated from a book written by J.K. Rowling.

In academic research, the postgraduate candidate should own the thesis which is the storybook in the case of a film.

When it is published in a journal, the authorship and its sequence of authorships should be based on the roles such as who had directed the development of the whole paper that should be given the primary authorship.

Then comes the respective individuals who created each component to make a manuscript for the journal publication.

If the academic supervisor crafted the whole manuscript and had received contributions from the postgraduate candidate and other researchers to satisfy the readership of a journal, then the academic supervisor can be the main author.

The origin of the research thesis is still owned by the postgraduate candidate, and he or she can take turns to craft another manuscript after learning the ropes of writing to a journal which needs mindful amendments a few times before it gets published.

The important matter here is all will be given due recognition based on the efforts to create a wider readership.

Therefore, the intellectual property ownership and authorship sequence issue should not overcrowd or destroy the research spirit that has primary importance in the development of human capital in the country.
Academicians have been working very hard towards that goal since the establishment of the universities.

DR SHANKAR CHELLIAH Universiti Sains Malaysia, Penang

Related posts:
Distinguishing research authorship and ownership rights

Distinguishing research authorship and ownership rights


Distinguishing authorship

I REFER to the letter “Quality time supervising post-graduates” (The Star, Feb 16 – attached below) where the writer said: “The supervisor obtains grants for his research and allows you to use the money to do your research. There is no reason why he should not claim first authorship”.

This was one of the responses to the letter “Stop practice of ‘free riders” (The Star, Feb 7- also attached below) which criticised the alleged practice of supervisors claiming authorship for students’ works.

It appears that there is a failure to appreciate the difference between authorship and ownership.

“Author”, as defined under section 3 of Malaysia’s Copyright Act 1987, means “the writer or the maker of the works”. It does not refer to a person who pays for the work.

In our present context, authorship can only be acquired through some scholarly input into the work. Money cannot buy authorship.

Authorship must not be confused with ownership.

The latter refers to one’s property right in the work, which includes the right to exploit it for profit.

For example, an author and a publisher may co-own a work. But the publisher is not the author.

Likewise, the supervisor who has provided the funding may acquire ownership, but not authorship.

Being an author attracts certain rights.

No person may, without his/her consent, present the work without identifying the author or under a name other than the author’s.

This is one of the author’s “moral rights” recognised by the law (section 25), which cannot be overridden without the author’s consent even if the work is subsequently sold.

Of course, where the supervisor constructs the framework for the research (more common for sciences than for social sciences) and divides its components to be researched by her students, the supervisor may appropriately be regarded as an author. There is scholarly input on his/her part.

What about the credit due for supervision given?

This will depend on the common understanding between the supervisor and the student.

In normal circumstances, the supervisor’s comments on a student’s work does not give him authorship since it is either given gratuitously or in pursuant to the supervisor’s obligation as a supervisor.

As the legal holder of moral rights, the student may as a matter of courtesy offer to include the supervisor’s name. But this is a matter of discretion rather than obligation.

Supervision is a selfless task. In my subject area, at least, supervisors conventionally disclaim authorship (or rather, they do not assert).

To acknowledge their generosity and sacrifice, it is common to explicitly express our gratitude to them in our work.

A close and personal relationship, which will last for many years (or decades) to come, arises from such mutual respect.

ALVIN SEE Assistant Professor of Law  Singapore Management University

  • B.C.L., University of Oxford, 2010
  • C.L.P., Malaysia, 2009
  • LL.B. (First Class Honours), University of Leeds, 2008


Quality time supervising post-graduates

I REFER to the letter “Stop practice of free riders” (The Star, Feb 7 – attached below) by Pola Singh.

The writer has missed the point by many miles. He has called supervisors by many idioms! One of which is “lembu punya susu, sapi dapat nama”.

He has misunderstood the whole process of postgraduate education. I don’t think there are any supervisors who will force a student to work under him like a “slave”. It is the student who chooses to work with a particular supervisor.

The graduate student–supervisor relationship is very personal and close. Yes, the student has to do all the work under the close supervision of the supervisor. The supervisor obtains grants for his research and allows you to use the money to do your research. There is no reason why he should not claim first authorship.

Of course in any publication there is no need for the supervisor to put his name first, but the corresponding author must be your supervisor. You cannot be the corresponding author simply because you will not be able to answer the reviewers’ queries as well as he.

If you can, then you don’t need the postgraduate degree and you don’t need the supervisor.

Many professors and supervisors spend hours discussing, correcting and guiding many students to their postgraduate degrees.


PROF FAROOK ADAM School of Chemical Sciences 
Universiti Sains Malaysia Penang

B. Sc. (with Education) (USM) 1981) M.Sc. (USM) 1992 D.Phil. ( Sussex ) 1998   



Stop practice of ‘free riders’
I FEEL compelled to write after hearing the tales of graduate
students pursuing their doctorate degrees at local universities who are exasperated with their professors for making use of them for their own ends.

Graduate students, particularly those doing their doctorate degrees, are at the mercy of their professors who demand this and that.

Topping the list of unreasonable demands is the co-authorship of papers based on the research done by the student for his PhD dissertation.

It is the student who painstakingly prepares the literature review, formulates the hypothesis, collects and analyses the data, draws up conclusions and makes recommendations.

Yes, the conscientious professor guides the student all the way (which in any case is part and parcel of his work) but when it comes to the publication of a manuscript based on the research findings, guess who gets all the credit?

Professors take for granted that in an unequal relationship, they will get credit for the hard work put in by the student and this is manifested by putting their name as the first author of the research paper.

No straight-thinking student would challenge this. In the worst case scenario, the student’s name does not even appear on the manuscript.

It’s akin to the saying “Lembu punyi susu, sapi dapat nama”.

Call this a form of exploitation but it is taking place all the time.

This imbalance of power leads some to label the students as “slaves”.

No matter how friendly and accommodating professors are, they still hold considerable power in deciding when the student will graduate.

Some nasty professors demand that the thesis be rewritten again and again and this frustrates the student who will do everything and anything to complete his doctoral degree as soon as possible.

We can understand why students are so afraid to bring such matters up to the higher authorities. In the process, they suffer in silence and the problem remains buried deep in the ground.

And it’s hard to say “no” to a professor’s unreasonable demands because grad students need the support of faculty members, who may happen to be members of their dissertation committee, to pass and approve their thesis.

Many of the department heads are so busy and sometimes overburdened with their administrative duties that they have hardly any time to do serious substantive research.

But as they aspire to go higher they need to beef up their resume by coming up with more publications. This will also increase their prospect of promotion and getting the elusive JUSA (super scale) post.

Guess who does all the “donkey work” for them? And yet some of these selfish professors do not even acknowledge the contribution of the student, although their contribution in the preparation of the paper has been minimal.

It’s easy to know who the culprits are.

Just ask the academicians to submit a list of their publications and notice the number of times the name of the professor is listed as the first author followed by the students.

Sometimes, the subject matter or topic of a paper is the same but the student’s name is left out entirely.
This practice of “free riders” in the academic circle has to stop.

Graduate students cannot be forever exploited. Vice-chancellors should not condone such practices which are regarded as a norm not only in Malaysia but also in developed countries.

A system has to developed by the Higher Education Ministry to ensure students get due credit for the work they have done.

What can be immediately done is to send a circular that a professor cannot take ownership of an article or paper that has been prepared entirely by the graduate student based on his dissertation work.

If it is warranted, the professor’s name can be listed not as the first author but as co-author.

POLA SINGH  Kuala Lumpur

Singapore start-ups struggle to woo investors, failure to launch

VC_Start Up

Singapore’s decade-long push to become a hotbed for entrepreneurs is stuck at stage one.

The city-state of 5.3 million people ranks No. 1 in the world in ease of doing business and fourth in starting one, according to a World Bank study. It offers low taxes, easy-to-obtain seed money to start a business, and a well-educated, English-speaking workforce in the gateway to Asia.

It just takes one day and S$315 ($260) to register a business in Singapore. Yet, the country has struggled to attract international investment money for its own start-ups.

VC_tee shirt

Venture capital firms are put off by the small size of the market, lack of big ideas that can be a global success and an uncertain exit strategy. Only 50 out of 301 venture capital firms based in Singapore are interested in local investment, according to the Asian Venture Capital Journal Research.

Of the 70 high tech start-ups the government has invested in over the past two years, just 10 received follow-on private funding from investors locally and abroad, according to the National Research Foundation, the government arm responsible for research and development.

“There is a real shortage of venture capital firms investing in Series A in Singapore,” said Leslie Loh, an entrepreneur-turned-investor, referring to the first round of funds raised by start-ups after seed capital.

“VCs are looking at countries like India and China where there is a larger domestic market.”

Only 2 percent (about $15 million) of the total venture capital investment in Asia is aimed at Singapore, according to Asian Venture Capital Journal Research’s data for 2012. Japan,

China and India topped the list of big VC investments in Asia.

“In the early stage there is a big push (by the government). But if you look at the whole ecosystem for helping companies grow, there is a gap in the growth stage,” said Wong Poh Kam, a professor at National University of Singapore’s business school.

“For a Singapore company to be able to achieve global success, it needs to have sufficient follow-on venture capital funding.”


Pampered by government funds at the early stage, when start-ups can tap up to S$500,000 in grants, companies are finding it hard when they go looking for millions of dollars from venture capital firms for Series A funds.

Of the 374 venture capital investments in Asia in 2012, Singapore accounted for just 24, according to AVCJ Research.

“If there are no success stories, VCs do not think there is a compelling reason to be here,” said Wong.

But that success depends on big money from venture capital firms, leaving start-ups stuck in a vicious cycle.

Andrew Roth, co-founder of Perx, which makes a digital loyalty card application, said one of the first questions he heard from investors when he went looking for funding was, “What is your net operating income?”

Roth says he would not have been asked that question if he was in Silicon Valley, where investors care more about the functioning of the product and its ability to gain scale.

“The mindset has to change,” said Roth, who is currently in the process of raising a second round of funds from individual investors and funds. “It is a younger ecosystem so investors are so much more risk averse.”


Singapore start-ups are also forced to think globally right from day one as a product aimed at a small domestic audience is not going to bring them a lot of success.

Henn Tan, head of Trek 2000 International Ltd, the company that introduced the ThumbDrive USB flash drive in 2000 and ranks among the few globally known success stories of Singapore, said it is difficult for Singapore to produce entrepreneurs.

“Because fellow Singaporeans are being subjected to regimented life from early years…there are too many rules and regulations for the young generation to think out of the box without being reprimanded,” Tan said.

The problem of raising funds beyond the government-created cocoon raises the question of whether its involvement in the start-up scene is actually a good thing.

Some think the government initiatives allow undeserving start-ups to get easy money, while others say the lack of private funds just proves that the government has to be active in providing a catalyst to start-ups and entrepreneurs.

The government says it needs to support start-ups at the early stage because that’s where the most risk exists.

“When the landscape is one which sees the vibrancy that you see in California and where multitudes of VCs have taken root and (are) able to manage a portfolio from early stage to growth stage to pre-IPO, then we can take a step back,” said Low Teck Seng, CEO of the National Research Foundation.

But he also warned against too much government involvement. “If the government funds what the industry thinks is not worth funding, then we will not be doing justice to public funds.”


Other than state-run or state-backed companies such as Singapore Airlines Ltd and Keppel Corp Ltd, the world’s largest oil rig builder, there are only a few big home-grown companies from Singapore.

There was Creative Technologies Ltd, whose PC audio cards, speakers and MP3 players were a hit in the early 2000s, but it fell out of favour with increasing competition. The company has posted 21 straight quarters of losses and voluntarily delisted itself from the Nasdaq in 2007.

For Perx’s Roth, who moved from New Jersey to Singapore to start his company, the attraction is the presence of global firms that set up an Asian base here, providing a steady stream of potential customers.

The fact that Singapore is home to high-flying business executives also helps. Facebook co-founder Eduardo Saverin invested in Perx early on. He sits on Perx’s board, and meets with Roth and his team once a month, Roth said.

“It’s hard for Singapore to claim to be an entrepreneur hub for (the) whole of Asia,” said NUS’s Wong. “A more realistic target would be for Southeast Asia.” ($1 = 1.2182 Singapore dollars)

(Editing by Emily Kaiser) (Reuters)

How can universities powering Malaysias’ ivory towers?

It is time we look at how our universities can be true to their noble calling as a mirror of humanity’s great heritage rather than be in danger of choosing show over substance.

A UNIVERSITY is a temple of learning and a storehouse of the knowledge and wisdom of the past. It is a receptacle of art, culture and science and a mir=ror of humanity’s great heritage. At the same time it is a laboratory for testing out a new vision of the future.

In more than four decades as a teacher, I have witnessed the ebb and flow of many educational movements. Some of them give me the feeling that we are choosing show over substance.

> Industrial links: In order to refute the charge that universities are ivory towers with no appreciation of societal needs, all universities have forged close relationships with the professions, industries and commerce. Curricula are devised to satisfy Qualifying Boards and potential employers. Students are required to do periods of apprenticeship. Captains of industry are often recruited as adjunct professors.

All this is laudable. At the same time it must be realised that our orientation towards industries and the professions distorts university education in some ways. A balance is needed.

> Lack of liberal education: The role of universities is to advance knowledge and build characters and not just careers. In their obsession with narrow professional goals and employability of graduates, many universities adopt curricula that are bereft of the arts and humanities. This paucity and poverty is accentuated because, unlike many countries, professional courses in Malaysia do not require a degree at entry point.

If a university is true to its worth, it must provide holistic education and produce well-balanced graduates who have professionalism as well as idealism, an understanding of the realities as well as a vision of what ought to be. Merely supplying technically-sound but morally-neutral human cogs in an industrial wheel to contribute to high production figures, will not in the long range lead to enlightened development of human capital or of society.

> Research: The crucial, core factor in a university’s eminence is qualified academicians with proven research abilities and a solid commitment to lead and inspire their wards to travel up the mountain path of knowledge.

A university cannot become an acclaimed university unless it possesses a large number of scholars who are the voice of the professions and who not only reflect the light produced by others (knowledge application) but are in their own right a source of new illumination (knowledge generation).

However, emphasis on research is leading to a number of adverse tendencies. Teaching is being neglected. Committed teachers are being bypassed in tenure and promotions in favour of entrepreneuring researchers.

Instead of singling out and supporting good researchers wherever they are found, the Malaysian approach is to anoint some universities with RU status and shower them with special grants. Innovators in non-research universities are thereby prejudiced.

> Research has various components: Capacity, productivity and utility.

The first (capacity) can be developed. Sadly, often it becomes an end in itself. The second (productivity) does not necessarily follow from the first. The third (utility) is often lacking. A great deal of research has no impact on the alleviation of the problems of society. Prestige and profit override public purpose. We need better criteria for research grant eligibility.

> Seeking best students: At the risk of sounding heretic, I wish to say that this modern obsession with seeking “the best students” is not conducive to social justice. Highly motivated, intelligent and articulate students make teaching a pleasure.

But what is even more satisfying is to take ordinary students and convert them into extraordinary persons; to mould ordinary clay into works of art.

It is submitted that entry points should be flexible. They should be based on holistic criteria. They should take note of initial environmental handicaps. They should be cognizant that equitable access to knowledge is a factor in sustainable development. They should further the university’s role to assist in social and economic progress; to cut poverty; to help the disadvantaged.

Entry points are less important than exit points. How a student ends the race is more important than how he/she began it.

All universities should be required to run some remedial programmes for under-achievers and to practise affirmative action for all marginalised sections of the population.

> Over-specialisation: Our system is committed to teaching more and more on less and less. Production of enough professionals and technocrats for the industries and the job market is an overriding role. However there is clear evidence that half or more than half of the graduates end up in roles outside of their university training.

In an age of globalisation, economic booms and busts, and high unemployment rates, there is a growing disconnect between what students study and what their subsequent careers are.

It is therefore, necessary to train students for multi-tasking, multi-disciplinary approaches; to have split-degree courses; and to produce graduates who have career flexibility and who are able to adapt to different challenges at work.

> Community service: Universities must serve society and not just by producing graduates for the job-market. All university courses must have an idealistic component and must straddle the divide between being people-oriented and being profession-oriented.

The curriculum must be so devised that staff and students are involved in the amelioration of the problems of society, in schemes for eradicating poverty, protecting the en-vironment, providing fresh water, storm control, protection from disease, adult education and free legal, medical, commercial and technical advice.

Tailor-made, short term courses for targeted groups should be devised to enrich lives. These courses should have no formal entry requirement. Town-gown relationships should extend to links with NGOs, GLCs and international groups that are involved in wholesome quests like environmental sustainability.

> Globalisation: Internatio­nalisation of knowledge is crucial for humanity’s advancement. However, to be truly global, we must not ignore citadels of excellence in Japan, Korea, China, India and Iran. It retards our progress and prevents us from addressing problems peculiar to our clime that our tertiary education suffers from a debilitating Western bias. Our course structures, curricula, textbooks, and icons are all European and American. It is as if the whole of Asia and Africa is and always was an intellectual desert. The opposite is true.

Asian universities must build their garlands of knowledge with flowers from many gardens. That would be true globalisation.

By Prof Shad Saleem Faruqi

> Shad Saleem Faruqi is Emeritus Professor of Law at UiTM 

Related post:
Form over substance in higher education and university   
China is the main show
When China Rules The World: The End Of The Western World And The Birth Of A New Global Order

Lawyer fleeced millions from victims in property scam

Lawyer on the run

KUALA LUMPUR : A 44-year-old lawyer is said to be on the run with millions of ringgit from a get-rich-quick scheme involving properties in the Klang Valley.

The man is alleged to be the mastermind behind a syndicate which had duped more than 500 investors nationwide into parting with between RM25,000 and RM80,000 each under a racket similar to the Ponzi scheme.

Over the short span of about a year that the scheme was active, the syndicate also took ownership of more than 200 properties mainly apartments and flats units worth about RM15 million under the lawyer’s name and several of his proxies.

According to sources, the syndicate had offered a list of properties it owned to investors for low prices on a deal to help them re-sell it at much higher prices.

Upon the victims picking the property of their choice and settling payment in full, the syndicate produced fake sale-and-purchase and ownership documents.

With the dud documents, the victims were given the notion that they were the new owners of the property and were assured of earning rental income from it until it is sold at a profit.

Police learnt that the ownership of the properties never changed hands and went on to remain in the names of the syndicate members.

The “sold” properties were then “resold” several times again to other potential investors who were also given fake ownership documentation.

Last year, several investors who realised they had been fleeced by the syndicate lodged police reports at the Brickfields police station.

An investigation was initiated by the police Commercial Crime Investigation Department (CCID) after elements of fraud and illegal deposit-taking was found in the case.

On getting wind that the authorities were looking for him, the lawyer, his accomplices and proxies fled the country together with their ill-gotten gains.

Earlier this year, the Special Task Force (Operations and Terrorism) Department’s anti-money laundering branch was roped in to assist in the probe.

After months of painstakingly compiling a list of the said properties, the investigation team obtained a court order two weeks ago to seize 79 flats and apartment units out of the 188 police had identified.

Federal special task force director Commissioner Datuk Mohamad Fuzi Harun told theSun that police have sought the help of Interpol to track down the mastermind and his accomplices.

“Most of the victims were retirees and senior citizens from the middle and low-income groups who lost either a large portion or all of their life savings.

“When we checked, several dozens of the ‘houses’ sold by the syndicate did not even exist or were not up for sale at all. The victims did not appear to own any of the properties.

“They were merely given falsified and fake documents. We have identified 188 and seized 79 properties so far but we believe there are more out there which we are trying to trace, he said, adding that Malaysian police have alerted Interpol to be on the lookout for the suspects who have gone into hiding overseas.

Mohamad Fuzi said police believe there are hundreds of people who have been fleeced in the racket and have yet to lodge police reports.

He advised them to come forward to assist police investigations.

The case is being probed as cheating under Section 420 of the Penal Code while the seizure of properties were made under Section 41 of the Anti-Money Laundering and Anti-Terrorism Financing Act (Amla).

Charles Ramendran

War for Talent! How to win it for Malaysia?

Winning the war for talent


Are hefty paychecks and good career prospects the only aspects talents look for in a base country? The answers may be the key to a country’s success in bringing its best brains home.

THERE is a global war being waged as companies and countries struggle to keep their best within their borders while they try to woo the world’s brightest.

And if salary perks and benefits offered by countries like Qatar, China, Singapore and Malaysia for returning experts and expatriates are anything to go by, the “War for Talent”, a term coined by research giant McKinsey & Company in 1997, is still going strong despite the global economic slowdown.

But 13 years after the term was coined, the landscape of the war has greatly changed. Most notably, the “weapons” used to attract talents have changed.

While salary packages and fringe benefits used to be one of the most powerful magnets for talent, it may not be enough in the current human resource climate.

Dr Tan: ‘When you have the brains or energy, you want to go to the best place to learn from the best’

David Lee, author of the Insights: The Journal of the Northeast HR Association article titled “Becoming a Talent Magnet: How to Attract and Retain Great Employees”, says that competitive pay and a good benefits package although important are not enough to attract and retain “the best of the best”.

Quoting a study by another US consulting firm Kepner-Tregoe of Princeton, Lee, an executive coach and founder of US consulting and training firm HumanNature@Work, points out that 40% of the employees surveyed felt that increased salaries and financial rewards were ineffective in reducing turnover.

Hence, the vital question for most human resource managers and national talent development organisations is “What are the world’s best looking for?”

Lee says the proverbial carrot lies in the intangible, such as pride in where they work and what they do, appreciation from their managers, opportunities to learn and grow as well as respect.

Interviews with Malaysian diasporas and experts who have returned seem to support the trend.

Although many of them acknowledge that salary packages and career prospects matter, it is often not a deal breaker when it comes to their decision to remain abroad or return home.

Wong: ‘If Malaysia wants to attract talents, it must be able to provide a conducive environment’

One of the main attractions for talents is the environment for them to develop and excel in their fields of interest.

When Kuala Lumpur-born consultant psychiatrist and analytic psychotherapist Dr Tan Eng-Kong left for a sabbatical in Australia in 1976, he knew he would get to work with some of the best psychiatrists in the world.

“At that time, Australia invited the best of American and British psychiatrists to its country, and I was lucky to be able to take a sabbatical from lecturing in Sydney,” says Dr Tan, who was in Kuala Lumpur recently.

As he found greater opportunities to practise his field of interest psychotherapy in Australia, he chose to stay there and build his career.

“In those days, the field of psychotherapy was not developed yet in Malaysia. So, I had to stay back in Australia just to practise,” says Dr Tan, who has now spent over 30 years building a successful career in Sydney.

While psychotherapy is currently gaining popularity among local mental health professionals, Dr Tan still feels it is more popular and better received in the West.

“When you have the brains or energy, you want to go to the best place to learn from the best,” says Dr Tan, who still visits Malaysia regularly to share his expertise with local mental health professionals.

Dr Lam Wei-Haur, who has just come back under the returning experts programme (REP) after spending six years in Britain and two years in China doing research in ocean renewable energy, shares a similar experience.

“Funding for research at a post-graduate level was limited when I finished my undergraduate studies in 2001. I was lucky to obtain a scholarship to further my studies in the UK,” says Lam, who is now an associate professor in Universiti Malaya’s department of civil engineering.

Although the tax cuts and benefits made the transition back to Malaysia easier, I came back because I felt I could contribute more to my field of research back home. – DR LAM WEI-HAUR

“However, after six years of research in the UK, I wanted to learn about the system of research and development in China,” he adds.

Lam, who is in his 30s, says he came back because he felt he would be able to contribute more to the field of ocean energy in Malaysia.

“Although the tax cuts and benefits such as a permanent residentship offer for my spouse made the transition back to Malaysia easier, the reason I came back is because I felt that I could contribute more to my field of research here, back home,” he explains.

There may be more established research institutions and teams overseas but having the opportunity to work with researchers in a developing nation such as Malaysia is like “sketching on a white piece of paper” for him.

On worries that Malaysia may not have sufficient funding and infrastructure for research, Dr Lam says researchers have to look for opportunities themselves.

“Our Government is now very supportive of scientific research and there are a number of sources researchers can go to for grants. We must understand that opportunities do not come to us if we do not make an effort to ask or look for it,” he stresses.

While Dr Hood Azlan Mohd Thabit, 35, is determined to return to Malaysia to continue his research in endocrinology (specifically in diabetes) after his post-graduate research in Cambridge, he agrees that the base country of a scientist or researcher is of marginally less importance compared to the research network and collaborations he could forge with other researchers around the world.

“It is very difficult for an individual or group to do research on its own, not just because the world is more globalised now, but because it is so easy to collaborate through the Internet, they have no excuse not to,” he says.

While certain countries have established infrastructure for research, others have the human resource and expertise, he adds.

“Personally, it is really for the satisfaction of doing what you do. And coming home, for most people, is about whether they can continue their work in a meaningful way,” says Dr Hood.

For corporate social responsibility (CSR) consultant Wong Lai Yong, who hails from Penang, the location of her base country does not matter as long as she is able to contribute to society from where she is.

Since she first volunteered to read to the blind in primary school, community service has been in her blood. Today, she continues to serve the people around her by spreading her knowledge on childcare development and social entrepreneurship based on her experiences in Japan.

“I’ve always realised that education is the best way to bring people out of poverty, so I think about the ways I can help bring education to people who have no access to primary education. That is why I have never confined my contributions to Malaysia alone,” says the cheerful 39-year-old.

She does not plan to return to Malaysia in the near future but even so, she visits regularly to share her knowledge.

“If Malaysia wants to attract talents, it must be able to provide a supportive and conducive environment for these talents to perform and contribute,” she says.

“We might not be able to compete with many developed nations in terms of salary and benefits, but we can offer Malaysian diasporas the comfort of home and the company of their family members.”

Malaysian transplant

Carol Lamb calls herself a transplanted Malaysian, having settled down in the United States in the 1980s. Lamb, who now runs communication firm Fantastic International Inc in Atlanta, says she is often asked in social circles where she is from.

“How do I convey that I am from a country surrounded by glistening islands with white sandy beaches, tropical rainforests with unique animal and plant life, cool mountain ranges with quaint villages, tall skyscrapers with world-class shopping, a fusion of Asia and British rule? I decided to build my own website and affiliate with one of the biggest online travel booking engines on the Internet,,” she tells.

With the help of Tourism Malaysia and its New York office, she travelled back to Malaysia and wrote about exciting tourist attractions and sites. The concept of medical tourism caught her attention and she is now helping to promote Malaysia as a health tourism destination among Americans.

“The number of Americans going to Malaysia is small. This is the reason why I created the Global Marketing Network’. I promote medical facilities that are in Malaysia at exhibitions around the US.

“Malaysian medical facilities need to be seen. Malaysia also needs to be on the lips and minds of people thinking about having surgery abroad. What better way to do this than participating in exhibitions?

“Additionally, most Americans do not know that Malaysia used to be a British colony. They are also unaware that English is widely spoken, the country has great infrastructure, fantastic beaches, awesome hotels, scrumptious food and is multi-racial and multi-cultural.

“Who better to explain all this face-to-face than a Malaysian who knows the country well?”

 Weaving a win-win web

BUILDING a global Malaysian diaspora network might seem like a colossal task but after the encouraging response entrepreneur Winston Choe received for the first diaspora meetup he planned in Silicon Valley, he is convinced that it may not be as difficult as it seems.

He had put out the word on the meetup he planned to link Malaysian technology companies with professionals and investors in the US in December, and was pleasantly surprised when he found over 80 Malaysians in the San Fransisco Bay Area, many of whom he had not met during the years he lived there.

“What I did was send the word out over the Internet through Facebook pages, LinkedIn groups and e-mail lists about the meetup. Within two weeks, we had to increase our initial cap of 30 people to 50,” said Choe, a Petaling-Jaya born CEO of his own business networking software company in Silicon Valley.

In fact, the meetup sponsored by Talent Corporation Malaysia (TalentCorp) that features the topic “Malaysian Tech Sector Opportunities” has attracted 80 interested participants, but Choe had to limit his audience to ensure quality interaction.

“I am greatly encouraged by the initial feedback and am confident that the next one will easily attract at least 100 people,” he said via Skype.

The idea of a meetup in Silicon Valley came up when Choe was in Malaysia in October for a workshop organised by TalentCorp.

“This meetup is a follow-up to the workshop we did in Kuala Lumpur in October,” said Choe, who is passionate about helping other entrepreneurs build their businesses.

“My goal is to allow professionals (in Silicon Valley) to explore cross border opportunities between the United States and Asia,” he added.

Before the meetup, held at the Intel Santa Clara campus, Choe had selected four MSC companies and coached them to make a 15-minute business presentation to Silicon Valley professionals and investors. At the meetup, he also presented a win-win model for Malaysian diasporas to contribute to various sectors in Malaysia.

“After the workshop in Kuala Lumpur, we realised that what Malaysian start-ups need most are funding, market access and global partners,” said Choe.

The win-win model he suggested is focused on enhancing these three aspects for Malaysian companies as well as professionals and investors abroad.

In terms of funding, Malaysian diaspora with successful business ventures can introduce Malaysian companies to investors in the West, and Malaysian companies can reciprocate by introducing them to investors in Asia.

“While Malaysian diaspora can help Malaysian companies access the US market, Malaysian companies can serve as a gateway for them to access the Asian market.

“What we are trying to do now is to build a global (Malaysian) diaspora network with physical meetups, workshops and also online social tools, and our objective is to accelerate various sectors in Malaysia, starting with infotech,” he said.

As a result of the meetup, Choe made eight qualified introductions between professionals at the workshop and three MSC companies that presented that day.

A LinkedIn group has also been set up to connect participants of the workshop.

“A few participants have expressed interest in helping me organise more of such meetups,” said Choe.

With their help, Choe’s goal in 2012 is to organise similar meetups across the world in cities such as New York, Toronto, London, Sydney, Melbourne and even Singapore.

“This represents about 80% of the Malaysian diaspora population, and we hope that they can take this platform and replicate it,” said Choe.

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