Share This

Showing posts with label Asia Pacific. Show all posts
Showing posts with label Asia Pacific. Show all posts

Wednesday, June 4, 2014

Shangri-La Dialogue proves unfairly dominated by Washington, regional harsh accusations

The Shangri-La Dialogue (SLD), held annually in Singapore, is a security forum where Western, especially US discourse power has the upper hand. It's not, as the West claimed, timed to deal with security anxieties ratcheted up in the Asia-Pacific region, but a platform to sell US security doctrines that are positively portrayed as "contributing to regional stability."

Throughout these years, three terms have been used over and over to describe China's defense policy at the dialogue, among which "uncertain" is the lightest one. In recent times, China has been increasingly accused of being "aggressive" or "bullying" others. The SLD, which is actually led by the US, offers a platform to communicate with Beijing while pressuring it.

Another purpose of the SLD is to coordinate relations among US allies. At the SLD over last weekend, US Defense Secretary Chuck Hagel rallied defense ministers from Japan and South Korea to hold a trilateral meeting despite strained relationship between Seoul and Tokyo.

Tempers frayed unprecedentedly at this year's SLD, as Japan and the US ganged up to antagonize China. The keynote address delivered by Japanese Prime Minister Shinzo Abe was a barrage against China and its recent behavior in the East China Sea and South China Sea disputes.

Abe emphasized the importance of international law to resolve or at least manage disputes. He also pledged Japan would play an "even greater and more proactive role" with stronger defense ties to Southeast Asia, including an offer to provide patrol boats to the Philippines and Vietnam.

In a subsequent address next morning, US Defense Secretary Chuck Hagel endorsed Abe's speech and unleashed a rhetorical fusillade on China.

The rhetoric from Tokyo and Washington only reinforced both countries' anxieties over China's growing might.

It's not difficult to pick out logical loopholes from Abe's elaborate speech. He clamored for respect for international law, but the prime minister's ambition to enshrine collective self-defense is a violation of Japan's pacifist constitution. How can we expect a man who disregards domestic law to respect international law?

Japan promised to enhance its security role in Southeast Asia. But how can its Self-Defense Forces still be called this if they stretch into Southeast Asia?

The clumsy attacks against China didn't score much resonance from the Southeast Asian contingent, the most important audience at Shangri-La.

Vietnam and the Philippines acted rather constrainedly in Singapore. And after Hagel's speech, a professor from Indonesia asked the defense secretary whether the US is contradicting itself by opposing one single country, implicitly China, dominating East Asia while the US itself pursues a dominant role. But Hagel evaded giving a direct answer.

The tone of this SLD was set during Abe's keynote speech. The Chinese delegation were duly incensed and forced to return fire.

Wang Guanzhong, deputy chief of the General Staff of the PLA, accused Abe and Hagel of sticking to each other targeting China, departing from the speech he had prepared for the dialogue. The Chinese side went toe-to-toe with Washington and Tokyo.

In its move from being a reluctant participant in the SLD, China now engages actively in the security forum.

This year, the sizeable contingent from China includes military representatives, scholars, media persons and a diplomatic delegation led by Fu Ying, chairperson of the Foreign Affairs Committee of China's National People's Congress.

The primary goal of the Chinese delegation was to advocate and elaborate a new security concept for Asia. Nonetheless, we were kidnapped by the crude Western accusations and forced into a defensive battle.

In recent years, there are soaring attacks against China at the SLD, a West-dominated platform.

China should prepare itself for provocations and respond in a more wise and humorous way. There is no need to be led by the nose by the Western countries.

More importantly, we should cultivate and expand the clout of multilateral platforms where China can have a bigger say, such as the Conference on Interaction and Confidence Building Measures in Asia and the World Peace Forum.

Sources: The article was compiled by Global Times reporter Yu Jincui with Jin Canrong, associate dean of the School of International Studies, Renmin University of China. yujincui@globaltimes.com.cn

Regional harsh accusations overshadow Shangri-La talks

Perhaps the number "13" is unlucky after all. For, over this weekend, the 13th Shangri-La Dialogue (SLD), the premier Asia-Pacific security forum held annually in Singapore, was unfortunately shrouded in a thicket of almost tangible tension.

The first salvo was launched by none other than the increasingly controversial Japanese Prime Minister Shinzo Abe. During his keynote speech at SLD opening dinner, Abe made a thinly veiled accusation that China upset the status quo in the East China Sea by threat of force.

Abe talked about the need to change the country's legal basis, a reference to the amendment of Japan's pacifist constitution, to enable it to take part in "collective self-defense." But amiss in Abe's extensive description of the "new Japanese" concept was any mention of Japan's militaristic past which still casts a dark pall over many of its victimized neighbors.

The next morning, as if in sync, US secretary of defense Chuck Hagel wasted no time in his keynote speech to directly confront China by accusing the latter of unilaterally altering the status quo in the South China Sea.

Hagel followed up by officially stating the US disapproval of China's setting up of an Air Defense Identification Zone in the East China Sea. Echoing Abe, Hagel agreed with the need to amend the Japanese constitution, and even mooted the reassessment of their joint defense treaty.

The unusually blunt and strident US posture during this year's SLD startled many observers. But a careful examination of the recent chain of events both regionally and worldwide may provide some clues as to Hagel's tough tone.

A rapidly emergent China, with its attendant rising confidence in tackling foreign and regional matters, almost inevitably gave rise to the perception among some US policymakers that the hitherto more or less unchallenged regional leadership of the US in the Asia-Pacific region was being increasingly sapped.

This resulted in the US urgency to reassert its preeminent role in at least the security matters of the region. Hence the notions of "pivoting" and "rebalancing" rang aloud in US rhetoric versus this region. This sense of acute leadership reinstatement is further exacerbated by recent US foreign policy fiascos around the world.

The Edward Snowden-revealed US blatant spying on foes and allies alike continued to gnaw at global US credibility and moral standing. US President Barack Obama's own threat of use of force to resolve the Syrian civil war was essentially upstaged by a last-minute Russian brokered deal to avert imminent attack.

Yet the Chinese responded to these seemingly joint attacks with a two-pronged approach. The more genteel response was delivered by its former vice foreign minister Fu Ying, who reassured the region of China's peaceful intension and long-standing contribution to regional security.

The more head-on response came in the form of off-the-cuff remarks Wang Guanzhong, deputy chief of the General Staff of the PLA, who characterized both Abe and Hagel's speeches as being provocative to China.

Nevertheless, it should be mentioned that the general mood among many of the SLD participants from regional neighbors was such that while potential Japanese remilitarization and the return of US hegemony in the region were certainly not welcome, a certain perception of increasing Chinese assertiveness in the region, rightly or otherwise, was also taking root. China needs to redouble its efforts in assuring its neighbors of its purported peaceful rise.

But despite their confrontational postures, both Wang and Hagel made ample mentions of various ongoing and perspective security cooperation mechanisms between the US and China, giving the impression that their "new type of major power relationship" could still hold up despite stark differences.

In addition, Abe, Hagel and Wang variously gave high praises for the important roles in regional security played by East Asian Summit, ASEAN Regional Forum as well as ASEAN Defense Ministers' Meeting-Plus.

It is in this sense that despite the dense and serious mood permeating this year's SLD, a glimmer of hope can still be gleaned.

Contributed by Ei Sun Oh Source:Global Times Published: 2014-6-3 19:38:01
The author is a senior fellow with the S. Rajaratnam School of International Studies, Nanyang Technological University, Singapore. opinion@globaltimes.com.cn

Related posts:

China says stronger PLA benefits security in Asia China was completely justified in rejecting remarks made by US Defense Secretary Chuck... 
  China: S. China Sea claims lawful, based on historical record At the Shangri-La Dialogue in Singapore, the Chief of China´s PLA Ge... 
Related articles:  
US Defense Secretary Chuck Hagel's remark at the 13th Shangri-La Dialogue in Singapore on Saturday was nothing but balderdash and justifiably condemned by China.

Tuesday, June 3, 2014

China reiterates principle for solving island disputes, China's claims are lawful based on history

  China: S. China Sea claims lawful, based on historical record

At the Shangri-La Dialogue in Singapore, the Chief of China´s PLA General Staff, Lieutenant Ge...



SINGAPORE, June 2 (Xinhua) -- Island or maritime demarcation disputes should be solved through coordination and negotiations between directly involved parties on the basis of respecting historical facts and international law, a Chinese general said on Sunday.

China's sovereignty, sovereign rights and jurisdiction in the South China Sea were established through the long process of historical development, said Wang Guanzhong, deputy chief of general staff of the People's Liberation Army (PLA), at the 13th Shangri-La Dialogue..

It can be traced back to over 2,000 years ago, or the Han Dynasty, when China started discovering and gradually maturing its administration over the South China Sea, especially the Nansha Islands and related sea area, Wang said..

The Xisha Islands and the Nansha Islands, both in the South China Sea, were occupied by Japan during World War II, and returned to China in 1946 under the Cairo Declaration and the Potsdam Proclamation..

After the return of these islands to China, the Chinese government in 1948 mapped out the nine-dash line, which is clearly marked in historical documents and world maps drawn by different countries, the general said..

China's neighboring countries never raised doubts about China's sovereignty, sovereign rights and jurisdiction over the Nasha Islands, the Xisha Islands and the related sea area until the 1970s when rich oil resources were discovered in the South China Sea, he said..

China, as a signatory country to the United Nations Convention on the Law of the Sea (UNCLOS), respects the convention which took effect in 1994. However, Wang said, China's sovereignty, sovereign rights and jurisdiction over the South China Sea islands and islets as well as related sea waters came into being over the past 2,000 years..

The UNCLOS, which took effect in 1994, cannot re-demarcate sovereignty, sovereign rights and jurisdiction that came into being over such a prolonged period of time in history, while recognizing countries' historical rights over seas and islands and islets, Wang said..

The UNCLOS is inapplicable to the adjustment of ownership of sea islands and islets, he said. The law governing the sea is an enormous and comprehensive law system, not merely a single UNCLOS..

Meanwhile, the adjustment is also not merely subject to a single international law of sea -- there is an enormous international law system which includes the international law of sea, he said. Thus, only using the UNCLOS to argue is not workable, he said..

China has signed the UNCLOS and respects it, but the United States has not signed the convention because it feels many provisions of the convention are against it, he said..

Wang noted China's stance in this regard is coherent and clear, that is, China advocates solving the disputes over islands and maritime demarcation through direct consultations and talks with the directly-involved parties..

Related post:

China says stronger PLA benefits security in Asia China was completely justified in rejecting remarks made by US Defense Secretary Chuck...

Related:

Abe, Hagel's accusations rejected

BEIJING, June 2 (Xinhuanet) -- Wang Guanzhong, the highest ranking military official in the Chinese delegation at an Asia-Pacific security forum, started his speech on Sunday by highlighting the common aspiration for a utopia with the same name as the event: Shangri-La..

However, the deputy chief of the General Staff of the People's Liberation Army did not continue with his mild-toned comments as planned on the last day of the Shangri-La Dialogue in Singapore.  Full Story

Abe's sugarcoating rhetoric at Shangri-La Dialogue disguises militaristic ambition

BEIJING, May 31 (Xinhua) -- Although right-leaning Japanese Prime Minister Shinzo Abe managed to deliver a seemingly "politically correct" keynote speech at the annual Asia Security Summit in Singapore on Friday, his awkward rhetoric betrayed his puzzled mind on regional issues..

Overloaded with abundant pleasant words and made-up concepts, such as "proactive contribution to peace" and "proactive pacifism," as well as new slogans enthusiastically promoted by Abe, the speech was in fact intended to sugarcoat the right-leaning Japan's militaristic agenda.  Full Story

China´s rebuttal to criticisms from US & Japan well-received

During the Shangri-la Dialogue security forum, China denounced Japan and the US for making provocati...


Fu Ying: Freedom of navigation is important to China

China’s former senior diplomat Fu Ying has stressed the significance of the freedom and safety of na...

UNESCO sets up knowledge center in Beijing 
The United Nations Educational, Scientific and Cultural Organization (UNESCO) set up its International Knowledge Center for Engineering Sciences and Technology (IKCEST) in Beijing on Monday.

War of words shows tensions in Asia Pacific

Asia-Pacific peace should be joint mission

Each and every regional stakeholder should assume the responsibility of safeguarding Asia-Pacific peace.

Congress’ malevolent bill falls on deaf ears

Now the US Congress has become a garbage heap filled with various anti-China sentiments.

Wednesday, December 12, 2012

HSBC Bank fined $1.92 billion for money laundering




British banking giant HSBC agreed to pay a record $1.92 billion settlement Tuesday after a broad investigation by U.S. federal and state authorities found the bank violated federal laws by laundering money from Mexican drug trafficking and processing banned transactions on behalf of Iran, Libya, Sudan and Burma

HSBC has agreed to pay $1.92 billion to settle a US money laundering probe. The British bank is alleged to have allowed clients with links to drug trafficking and terrorism to move money. 

The two sides reached a $1.92 billion (1.48 billion euros) settlement Tuesday, HSBC said.

"HSBC has reached an agreement with the United States authorities in relation to investigations regarding inadequate compliance with anti-money laundering and sanction laws," the bank said in a statement.

The settlement includes a five-year deferred prosecution agreement with the US Justice Department, which allows a subject under investigation to avoid prosecution if it meets conditions, such as paying fines.

Prosecutors had accused HSBC of allowing improper financial transfers from countries including Mexico, Iran and Saudi Arabia by clients linked to international crime, including drug trafficking and terrorism.

The bank apologized soon after, and acknowledged the firm lacked controls to prevent money laundering.

'Profoundly sorry'

"We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again," said group chief executive Stuart Gulliver in a statement.

"We are committed to protecting the integrity of the global financial system. To this end we will continue to work closely with governments and regulators around the world," Gulliver said.

HSBC's announcement comes one day after another British bank, Standard Chartered, agreed to pay some $327 million (253 million euros) to settle charges it violated US sanctions by channelling money to clients in Iran and Sudan.

dr/msh (AFP, dpa, AP)

Related:
Citigroup to sack more than 11,000 jobs 

Saturday, November 24, 2012

ASEAN plans world’s largest trading bloc in Asia, the Regional Comprehensive Economy Partnership (RCEP) and the U.S. Secrecy in Trans-Pacific Partnership (TPP)

The leaders of Asean have succeeded in persuading their top trading partners to start negotiations on the Regional Comprehensive Economic Partnership (RCEP) to create the world’s largest trading bloc.

Cambodian Prime Minister Hun Sen formally launched the negotiations on the RCEP during the Asean Summit and Related Summits yesterday at a meeting at the Peace Palace in the western part of Phnom Penh.

The leaders of the 10-member regional grouping and their six major trading partners agreed to create a trading bloc that will comprise more than three billion people and with a combined GDP of US$15 trillion, roughly equal to that of the US.

Asean also launched the US-Asean Expanded Economic Engagement initiative, aimed at expanding trade and investment ties with the US and smoothing a path for the Trans-Pacific Partnership.

Trade Minister Gita Wirjawan said that plans for the RCEP would be welcomed by world leaders from Australia, India and the US as an amazing tool of economic integration that might become the benchmark for other regions.

“The spirit is not that of a zero-sum game. The economic integration of other regions is complementary to the economic integration among [Asean] member countries,” Wirjawan told The Jakarta Post on the sidelines of the event.

“Many Asean member nations are conducting bilateral talks that are just fine, because they are complementary [to the RCEP],” Wirjawan said.

The minister has previously said that the RCEP would “rewrap” five current free trade agreements (FTAs) with Asean’s six major trading partners, China, Japan, India, South Korea, Australia and New Zealand.

Asean’s FTA with Australia and New Zealand covers both nations.

Wirjawan said that the prospects for the RCEP were currently brighter than of the Trans-Pacific Partnership (TPP) free trade agreement touted by the US, as Asean already had FTAs in place, albeit mostly on goods and tariffs, with most of the nations involved.

The RCEP will expand upon existing FTAs to include agreements covering services and investment.

Asean is currently in discussions to expand its FTA with India, which it expects to complete in time for the Asean-India Commemorative Summit next month in India. Similar negotiations will follow with Japan.

Earlier in the day, there was a global dialogue between Asean leaders with the heads of world financial institutions, including Asia Development Bank President Haruhiko Kuroda, IMF Managing Director Christine Lagarde, World Bank Managing Director Caroline Anstey, UN Conference on Trade and Development Secretary-General Supachai Panitchpakdi and World Trade Organisation Director-General Pascal Lamy.

Wirjawan said that the leaders agreed that Asean had shown itself to be resilient amid the global financial crisis, becoming a model for other economic zones.

“Also discussed were efforts to face financial crises, such as the Chiang Mai Initiative pool of funds, which has been increased from $120 million to $240 million,” Wirjawan said.

Another important decision that was made during meetings and summits in Cambodia between November 15 and 20 was to start additional talks on implementing the Asean Economic Community on Dec. 31, 2015, to aid member nations in their preparations.

Asean’s leaders also adopted the Asean Human Rights Declaration, despite critics who said that the document was not up to universal standards of human rights protection, promotion, monitoring and enjoyment.

At the end of the closing ceremony, Hun Sen presented the gavel to Brunei Darussalam Sultan Hassanal Bolkiah to mark the handover of Asean’s rotating chair from Cambodia to Brunei starting on January 1.

Bolkiah said it would be the fourth time that Brunei would hold Asean’s chair, and that the nation had chosen a motto of “Our People, Our Future Together” for Asean for 2013.

Asean Secretary-General Surin Pitsuwan of Thailand also brought to an end to his term. He will be replaced by Vietnamese deputy foreign minister Le Luong Minh, who has been endorsed by Asean’s member nations.
___________________________________________

An alternative to US President Barack Obama’s Trans-Pacific Partnership, the 16-member Regional Comprehensive Partnership (RCEP) is the newest concept for an economic union between ASEAN and six major trading partners, China, Japan, India, South Korea, Australia and New Zealand.

The RCEP is supposed to be a trading bloc that will comprise more than three billion people with a combined GDP of $20 trillion, or almost one-third of the global economy. Officials hope to have the talks concluded by the end of 2015.

Source: Investvine
___________________________________________
Association of Southeast Asian Nations

The First ASEAN summit was held in February 1976 in Bali.

The most recent 21st Summit was held from November 18-20, 2012 in Phnom Penh, Cambodia
_______________________________________________
Video: ASEAN agenda


_______________________________________________
Video: Opening Ceremony of the 21st ASEAN Summit


______________________________________________

Trans-Pacific Partnership

On November 12, 2011, the Leaders of the nine Trans-Pacific Partnership countries – Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, Vietnam, and the United States – announced the achievement of the broad outlines of an ambitious, 21st-century Trans-Pacific Partnership (TPP) agreement that will enhance trade and investment among the TPP partner countries, promote innovation, economic growth and development, and support the creation and retention of jobs.

INCREASING AMERICAN EXPORTS, SUPPORTING AMERICAN JOBS

President Obama announced in November 2009 the United States’ intention to participate in the Trans-Pacific Partnership (TPP) negotiations to conclude an ambitious, next-generation, Asia-Pacific trade agreement that reflects U.S. priorities and values. Through this agreement, we are seeking to boost U.S. economic growth and support the creation and retention of high-quality jobs at home by increasing American exports to a region that includes some of the world’s most robust economies and that represents more than 40 percent of global trade. The Obama Administration has been working in partnership with Congress and consulting closely with stakeholders around the country to ensure TPP addresses the issues that American businesses and workers are facing today, and may confront in the future.

The Trans-Pacific Partnership Framework

The United States, along with Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam are working to craft a high-standard agreement that addresses new and emerging trade issues and 21st-century challenges. The agreement will include:

• Core issues traditionally included in trade agreements, including industrial goods, agriculture, and textiles as well as rules on intellectual property, technical barriers to trade, labor, and environment.

• Cross-cutting issues not previously in trade agreements, such as making the regulatory systems of TPP countries more compatible so U.S. companies can operate more seamlessly in TPP markets, and helping innovative, job-creating small- and medium-sized enterprises participate more actively in international trade.

• New emerging trade issues such as addressing trade and investment in innovative products and services, including digital technologies, and ensuring state-owned enterprises compete fairly with private companies and do not distort competition in ways that put U.S. companies and workers at a disadvantage.

Leading Asia-Pacific Regional Integration Initiative

The TPP is the most credible pathway to broader Asia-Pacific regional economic integration. After nine rounds of negotiations, the nine countries made solid progress and have now achieved the broad outlines of an agreement. During their meeting on the margins of the APEC meeting in Honolulu, the TPP Leaders agreed to seek to conclude the agreement as quickly as possible and instructed their negotiators to expedite their work. The nine countries also welcomed the interest expressed by other countries in joining the agreement and will begin bilateral processes with these interested countries to discuss their readiness and ambition to meet the standards and objectives of the TPP. Once these bilateral processes have concluded, all current Parties will decide on inclusion of new members by consensus.

American Competitiveness in the Asia-Pacific

The TPP is a key element of the Obama Administration strategy to make U.S. engagement in the Asia-Pacific region a top priority. The huge and growing markets of the Asia-Pacific already are key destinations for U.S. manufactured goods, agricultural products, and services suppliers. As a group, TPP countries are the fourth largest goods and services export market of the United States. U.S. goods exports to the broader Asia-Pacific totaled $775 billion in 2010, a 25.5 percent increase over 2009 and equal to 61 percent of total U.S. goods exports to the world. U.S. exports of agricultural products to the region totaled $83 billion in 2010 and accounted for 72 percent of total U.S. agricultural exports to the world. U.S. private services exports totaled $177 billion in 2009 (latest data available), 37 percent of total U.S. private services exports to the world. America’s small- and medium-sized enterprises alone exported $171 billion to the Asia-Pacific in 2009 (latest data available).

_____________________________________________
Video: Trans-Pacific Partnership negotiated in secret


_____________________________________________
Video: Dennis Kucinich discusses the secrecy of the Trans Pacific Partnership
Dennis Kucinich (Democrat) is a member of the U.S. House of Representatives from Ohio’s 10th district
October 18, 2012 before the elction of the U.S. President took place on November 6, 2012


_____________________________________________

Sources: Novan Iman Santosa The Jakarta Post

Related post:
The US Pacific free trade deal that's anything but free? 
US launches financial attacks against its allies!

Sunday, September 23, 2012

Are Malaysian salaries enough to draw our talents back?

 Click on graphic for larger view.

FOR Daniel Chew, Brisbane a city of modern skyscrapers but known for its laidback lifestyle has been “home” for the last 10 years.

Even before graduating with a degree in Commerce from the University of Queensland, Chew, 29, remembers having secured a job offer. The fact that his qualifications entitled him for permanent residence in Australia only made his decision to stay on so much easier.

His career path was set out in 2005, with him joining KPMG as an auditor, and later moving on to its corporate finance division where he specialised in business valuations. His years in professional practice also saw him qualify as a chartered accountant.

Today, Chew is a commercial analyst in the oil and gas industry, and he says the salary range for such a role can be anywhere from A$80,000 (about RM255,000) to A$140,000 (about RM446,000) per annum, “depending on the level and type of experience”.

“I don't think I could be earning in Malaysia what I earn here. Just the exchange rate alone already makes the salary here three times more than what it is in Malaysia,” he says.

Opportunity and lifestyle are two other factors that are keeping him Down Under, but he does not discount the possibility of returning to Kuala Lumpur if a good opportunity presents itself.

“Right now I have a girlfriend here, which means that if I were to go back, it must also mean that there is a good job prospect for her as well.

“Having a good salary package would definitely be a good motivator (to move back), but I'm also looking at career growth opportunities. And being close to my family would be a plus point,” he says.

Norman: ‘Salaries in Malaysia in the mid-tier management are generally about 10% to 30% lower compared with that found in our Asia Pacific counterparts such as Singapore, Hong Kong and Australia.’ Norman: ‘Salaries in Malaysia in the mid-tier management are generally about 10% to 30% lower compared with that found in our Asia Pacific counterparts such as Singapore, Hong Kong and Australia.’

Another Malaysian, who only wants to be known as Justin and who has been in London for about nine years, says he is apprehensive about coming back.

Justin works in the finance department of an investment bank. The market rate for his role is roughly between £50,000 (about RM248,000) and £60,000 (about RM297,000) per annum, one which he isn't sure Malaysia can match.

“I don't know if Malaysia would be able to offer a better salary package but for me, the main question is whether Malaysia will be able offer the same opportunities.

“London is a world hub for foreign exchange (FX) and other investment banking products such as credits, equity, rates, etc, whereas the products traded in Malaysia are considered vanilla'. What I do in investment banking is quite specific. Even if I were to move into a different product area, there might not be a lot of opportunities for my career development in Malaysia,” he says.

However, Justin adds that taking care of his ageing parents in Kuala Lumpur is also an important consideration, and if push comes to shove, “Singapore might be a feasible option”.

Chew and Justin are just two examples of the many Malaysian talents living abroad, and to pull them back, salary and career opportunities are two factors which need to be seriously looked into. It has been reported that at present, as many as one million Malaysians are living abroad.

Interestingly though, according to Kelly Services managing director Melissa Norman, salaries in Malaysia in the mid-tier management are generally about 10% to 30% lower than that in our Asia-Pacific (Apec) counterparts such as Singapore, Hong Kong and Australia.

“It varies depending on the functions and skills, but for the mid-tier level, the difference is between 10% and 30%. When it comes to the C-suite executives, the difference could be much higher (where salaries overseas could double that in Malaysia),” she says, adding that the exchange rate alone is a pull factor for Malaysians to work overseas.

Money issues: It has been reported that as many as one million Malaysians are living abroad. To pull them back, salary and career opportunities are two factors which need to be seriously looked into. Money issues: It has been reported that as many as one million Malaysians are living abroad. To pull them back, salary and career opportunities are two factors which need to be seriously looked into.
 
(Refer to the chart, which is derived from the Kelly Services Asia Pacific Professional and Technical Salary Guide 2012. The salary guide is based on the actual transactions between Kelly's clients and candidates.)

Currently, positions that are in high demand in the Apec region are in the engineering and information technology industries.

“Where it shows (in the chart) that Malaysia is offering a higher salary compared to, say, Singapore, it means that those are skills which are highly in demand. They are niche skills, and companies are willing to pay a higher salary to bring in talent from abroad,” she says.

Generally, Norman says, fresh graduates in Singapore are commanding a starting salary of about S$2,500 (RM6,200), while many Malaysian graduates are “still hovering between RM1,800 and RM2,000”.

“You need to go one step further and ask Why are they getting paid a little more, and why are we paid a little less?' This brings you to the quality of the students. The majority of graduates here come out lacking in skills.

Sure, Malaysia is moving towards a high-income economy, but if wages go up and productivity remains the same, it would be a recipe for disaster. - Shamsuddin Bardan, MEF executive director
Sure, Malaysia is moving towards a high-income economy, but if wages go up and productivity remains the same, it would be a recipe for disaster. - Shamsuddin Bardan, MEF executive director

“When you talk about Singapore graduates, you're talking about universities like NTU (Nanyang Technological University), which are the cream of the crop. So the package they earn is warranted based on the quality of their background.

 
“Over here, you have the cream of the crop too, but naturally they get picked by all the big boys' (major firms and MNCs) even before they graduate. And you will have a pool of students who study overseas, but they don't come back,” she says.

Malaysian Employers Federation (MEF) executive director Shamsuddin Bardan adds that when it comes to salaries, one has to look at the productivity aspect as well.

“When you talk about whether Malaysian salaries are competitive, you have to factor in productivity. According to the MPC's (Malaysia Productivity Corporation) 2012 report, Malaysia's productivity is 3.8 times lower than Singapore's productivity.

“In simple terms, what takes one employee to do in Singapore takes 3.8 employees here to accomplish the same task,” he explains.

According to the report, Malaysia's employee productivity value (the value of productivity of one Malaysian employee) is at US$14,217, lower than Hong Kong at US$65,174 and Singapore at US$55,702.

“So to look at wages on its own, that would not be fair. Sure, Malaysia is moving towards a high-income economy, but if the wages go up and productivity remains the same, it would be a recipe for disaster,” Shamsuddin says.

But the fact remains that brain drain and talent scarcity in Malaysia are very real issues that challenge employers.

Norman says that organisations are definitely “feeling the pinch of scarcity of skilled talent” which is prevalent today as people are very open to the idea of changing jobs and moving countries.

Since 2010, the Government has also been trying to woo talent back via TalentCorp, and more recently, Prime Minister Datuk Seri Najib Tun Razak announced the Talent Roadmap 2020, a nine-year time frame designed to address the underlying issues affecting talent availability in Malaysia.

So what will it take to bring our Malaysian talents back?

“Motivation is different for different people, but I would say the top three things would be the total package (salary, compensation plus benefits), the type of role these talents will have here (roles will have to be better, as no one moves laterally), and the policies that are involved (how easy it will be for talents to come back with foreign spouses, for example),” Norman says.

She adds that in trying to attract Malaysian talents back, the “rewards and the opportunities must be fairly presented so there's a nudge for people to make that move”. “To a certain extent, having Malaysians abroad is good for Malaysia, because of the exposure that they will have. But if we can bring them back, they can do so much for the country.

“Today when you look for talent, organisations need to pitch. If the talent is extremely great, some companies even have an attraction bonus just to get them to sign on. Package jumps when you're doing head hunting is fairly high,” she says.

Talent retention is equally important.

“We must recognise the fact that we must do something to retain the talent we already have here, so we don't also lose them eventually,” she says, likening it to a leaking bucket.

Ultimately, Norman says, the talent that Malaysians want back are “skilled workers who are in demand with niche expertise”.

To bring them back, the question which will need answering is “What's in it for them?”

BY LISA GOH  lisagoh@thestar.com.my/Asian News Network