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Friday, May 16, 2014
Pandas arriving from China symbolling frienship and excitement in Malaysia
Sharing the care of such precious animals strengthens the bonds that China has with its ‘inner circle’ of countries.
HERE are a few fun facts about giant pandas: While 99% of their diet is assorted bamboos, they occasionally feed on farm crops like corn stalks and wheat, wild fruits like kiwi and loquat, and herbs like Chinese angelica and celery.
According to the book 201 Questions about Giant Pandas, they are even known to eat charcoal and lick or bite metal-ware in the village, earning them the nickname of “iron-eating beast”.
Pandas may appear clumsy, but they can wade through water and swim.
Just like us, they fear injections and pills. The cuddly animals will actually try to escape whenever they see doctors in white robes entering their enclosures with injection needles.
In order to appear unsuspicious, vets have to don casual clothes or distract them with food.
Next week, the much-awaited giant pandas that will be loaned to Malaysia, Feng Yi and Fu Wa, are likely to arrive in Kuala Lumpur ahead of Prime Minister Datuk Seri Najib Tun Razak’s visit to China.
They are the latest pair to leave Sichuan in China, after Xing Hui and Hao Hao, which departed for Belgium’s Pairi Daiza zoo in February.
Malaysia will be the ninth country to receive the giant pandas from the China Conservation and Research Centre for the Giant Panda in Sichuan.
Other countries involved in this research-based exchange and co-operation include England, Austria, Thailand, Singapore, Australia, Japan and the United States.
Overall, 43 giant pandas live in 17 zoos across 12 countries.
It was said that Empress Wu Zetian executed the very first panda diplomacy by presenting two pandas to the Japan emperor in 685 AD.
Everywhere they go, the pandas become natural crowd-pullers, not just because of their rarity but also their irresistibly adorable behaviour.
The national treasures of China shoulder an important diplomatic mission when they embark on their overseas voyage.
On a larger scale, they are the symbol of friendship between China and the receiving country.
The loans are also often interpreted as an exchange for trade and investment deals.
An Oxford University study in September last year pointed out that the panda loan is a “seal of approval” for important trade deals and intentions for a long and prosperous working relationship.
It said countries involved in the recent panda transactions were China’s close Asian neighbours, including Singapore, Malaysia and Thailand, which have signed free-trade agreements with China.
It noted that the Chinese government is now in the third phase of its panda diplomacy.
“Phase 1 during the Mao era (in the 1960s and 1970s) took the form of China gifting pandas to build strategic friendships.
“Phase 2 followed Deng Xiaoping’s rise to power in 1978 when gifts became gift loans involving a capitalist lease model based on financial transactions.
“In the emerging phase 3, panda loans are associated with nations supplying China with valuable resources and technology and symbolise China’s willingness to build ‘guanxi’ – namely, deep trade relationships characterised by trust, reciprocity, loyalty and longevity,” the study’s abstract read.
The study’s lead author Dr Kathleen Buckingham said sharing the care of such a precious animal strengthens the bonds that China has with its “inner circle” of countries.
“Countries that can successfully breed pandas will demonstrate their technological strength,” she said.
Meanwhile, the recipient countries are likely to benefit from the presence of the giant pandas in terms of revenue for the zoos.
Besides entrance tickets, various panda-themed memorabilia are selling like hot cakes.
The Guardian reported in May last year that the panda duo, Tian Tian (Sweetie) and Yang Guang (Sunshine), have helped boost Edinburgh Zoo’s income and visitor numbers to record levels.
It quoted the zoo’s charitable owners, Royal Zoological Society of Scotland, as saying that the zoo’s overall income increased by more than £5mil (RM27mil) to nearly £15mil (RM81mil) in 2012.
The number of visitors also shot up by 51% after the duo’s arrival in December 2011.
In 2011, the society reported a £1.2mil (RM6.5mil) deficit after taking out two bank loans to help cover its earlier losses, the report said. With the arrival of the giant pandas, its overall surplus was £2.4mil (RM13mil) last year.
The report added that the extra ticket and merchandising sales have “more than covered the heavy costs of keeping the pandas”.
Perhaps Zoo Negara would also be able to duplicate Edinburgh’s success and attract more local and foreign visitors to the establishment.
And zoo goers can hopefully learn more about protecting local wildlife as well.
Check-in China by Tho Xin Yi The Star/Asia News Network
The views expressed are entirely the writer’s own.
Excitement over pandas' arrival
China’s ambassador to Malaysia, Huang Huikang, confirmed the pandas would arrive next week and said Beijing’s gesture is aimed at fostering better relations with Malaysia.
The two pandas will be on loan to Malaysia for 10 years and will be given new names, names that depict Malaysian identity..
Pandas are not a new phenomenon in China’s diplomacy. They have been used as a diplomatic tool in the past.
China sent its first panda named Ping-Ping as a gift to the Soviet Union in 1957. Two years later another panda An-An was sent to Moscow. North Korea received five pandas from China between 1965 and 1980.
Following US President Richard Nixon’s historic visit to China in 1972, Beijing sent two pandas Ling-Ling and Hsing-Hsing as a gift to Washington.
Beijing also gave two pandas LiLi and Yan-Yan to France to mark President Georges Pompidou’s visit to China in 1973.
Malaysians highly appreciate China’s goodwill and cooperation that will further enhance ties between the two countries.
Contributed by S. SUNDARESON Petaling Jaya
Thursday, May 15, 2014
Vietnam's anti-China riots 'hurt its image', burning nationalism cornering Hanoi
Mobs chanting anti-Chinese slogans have set at least 15 foreign factories on fire in southern Vietnam.
An analyst said the incidents were among the country's most serious riots and would tarnish its image as an investment and tourist destination.
The rioting started late on Tuesday when about 19,000 workers protested at a Singapore-run industrial park and others nearby in Binh Duong province, 1,120 km south of Hanoi, the capital.
Authorities said rioting and looting forced the closure of 1,000
factories, but no casualties were confirmed. About 500 people were
arrested.
An analyst said the incidents were among the country's most serious riots and would tarnish its image as an investment and tourist destination.
The rioting started late on Tuesday when about 19,000 workers protested at a Singapore-run industrial park and others nearby in Binh Duong province, 1,120 km south of Hanoi, the capital.
Special: Territorial Disputes in the South China Sea |
Opinion: Vietnam's claims do not hold water |
The incidents came after anti-China street protests over the weekend following Beijing's recent deployment of an oil drilling rig in its territorial waters in the South China Sea, which are also claimed by Vietnam.
In a phone conversation with his Indonesian counterpart on Wednesday, Foreign Minister Wang Yi said China wanted Vietnam to calm the situation.
"China's stance of protecting its legal sovereign rights is firm, clear and will not change," he said.
Ministry spokeswoman Hua Chunying said Beijing had lodged protests with the Vietnamese ambassador, asking the Vietnamese "to immediately take effective steps to stop and punish these crimes, and to ensure the safety of Chinese citizens and institutions in Vietnam."
Hua said Hanoi had deliberately escalated tensions by allowing its vessels to ram Chinese boats around the rig on 169 occasions on Tuesday and by arranging for reporters to cover the process.
"This was all done for show in an attempt to present a false picture and deceive the public," she said.
Li Jinming, a Xiamen University professor of maritime law and South China Sea studies, said, "Vietnam is provoking China on land and sea in a high-stakes gamble."
Tran Van Nam, deputy head of the province's people's committee, was quoted by VnExpress as saying that the protests were initially peaceful but had been hijacked by extremists who incited people to break into the factories.
Hundreds of other factories were vandalized or looted, while some security guards and technicians were assaulted, the official said.
He said people attacked factories they believed were run by companies from the Chinese mainland, but some were run by people from Taiwan, Japan or South Korea.
On Wednesday morning, nearly all the factories in the area were closed and riot police had been deployed.
Global exporter Li & Fung, which supplies retailers such as Kohl's Corp and Wal-Mart Stores with clothing, toys and other products, said it had suspended production in Vietnam.
Yue Yuen Industrial Holdings, a Taiwan manufacturer with headquarters in Hong Kong, also suspended production. It makes footwear for firms including Nike and Adidas.
Vietnamese Internet users have questioned the motivation and impact of the rioting.
"Young people should be more cautious and avoid being used by bad people. The (foreign) companies have brought jobs — what is wrong with them?" a netizen nicknamed muoihcm commented in the VnExpress report.
The Vietnamese government gave rare permission for the weekend protests, which were enthusiastically covered by state media.
Li Guoqiang, deputy director of the Research Center for Chinese Borderland History and Geography at the Chinese Academy of Social Sciences, said, "It is high-profile propaganda for the Vietnamese authorities and media regarding the collision of ships in the South China Sea that enraged public opinion and resulted in the riots.
"The incident will not only harm relations with China but also endanger Vietnam's international image, especially as an investment and tourist destination."
Wang Jian and Xinhua contributed to this story.
Burning nationalism cornering Hanoi
Vietnam's anti-China protests have turned into turmoil since Tuesday. Companies and investment projects from the Chinese mainland, Taiwan and other Asian countries and regions have been affected. It was reported that Taiwan investors suffered the greatest loss.
This is the most serious riot since Vietnam reunited, and the most stunning attack and looting foreign businesses in East Asia in recent years. Street politics in some Asian countries in recent years have caused havoc for social order and business, but few were like that in Vietnam, which deliberately targeted industrial parks and factories. Workers even ransacked their own factories.
Authorities from the Chinese mainland and Taiwan as well as other countries and regions such as Singapore have lodged stern protests with the Vietnamese government. Some international media, shocked by the chaos, called Vietnam an anarchy-dominated country of burning nationalism.
The turmoil is the outcome of Hanoi's years of anti-China propaganda. Without legitimate grounds and practical capability, Vietnam fabricates and hypes up its jurisdiction over the Xisha and Nansha Islands. This uncompromising stance, in an attempt to bring its people together, has actually cornered itself.
The rising turmoil in Vietnam has jeopardized the interests of foreign investors. Vietnam is probably no longer a rich land for investment and business, but a pariah in the eyes of these investors, especially East Asian investors. Vietnam is making a fool of itself, showing how uncertain its market is.
Vietnam has to offer compensation for the losses incurred to foreign investors, who will not allow Hanoi to duck its responsibilities. Otherwise Vietnam will pay an additional political price.
When large scale anti-Japan demonstrations broke out in China, wherever vandalism took place there was much less damage caused by the Chinese protestors, and public opinion urged prompt reflection.
The Chinese government and mainstream society were clear in their attitude against violence in demonstrations and the vandals were pursued according to the law.
But violent demonstrators in Vietnam, starting Tuesday, were obviously indulged by Hanoi. The situation was still out of control a day later. There was no collective condemnation of the violence by local media.
Arrogance makes Hanoi misjudge the situation in the Asia-Pacific. The geopolitics of the South China Sea will not be easily changed by its harassment.
It's time that Hanoi sober up, or those looters will finally make the whole country suffer. Hanoi's over-tolerance must not test China's patience beyond the limit. - Global Times
In a phone conversation with his Indonesian counterpart on Wednesday, Foreign Minister Wang Yi said China wanted Vietnam to calm the situation.
"China's stance of protecting its legal sovereign rights is firm, clear and will not change," he said.
Ministry spokeswoman Hua Chunying said Beijing had lodged protests with the Vietnamese ambassador, asking the Vietnamese "to immediately take effective steps to stop and punish these crimes, and to ensure the safety of Chinese citizens and institutions in Vietnam."
Hua said Hanoi had deliberately escalated tensions by allowing its vessels to ram Chinese boats around the rig on 169 occasions on Tuesday and by arranging for reporters to cover the process.
"This was all done for show in an attempt to present a false picture and deceive the public," she said.
Li Jinming, a Xiamen University professor of maritime law and South China Sea studies, said, "Vietnam is provoking China on land and sea in a high-stakes gamble."
Tran Van Nam, deputy head of the province's people's committee, was quoted by VnExpress as saying that the protests were initially peaceful but had been hijacked by extremists who incited people to break into the factories.
Hundreds of other factories were vandalized or looted, while some security guards and technicians were assaulted, the official said.
He said people attacked factories they believed were run by companies from the Chinese mainland, but some were run by people from Taiwan, Japan or South Korea.
On Wednesday morning, nearly all the factories in the area were closed and riot police had been deployed.
Global exporter Li & Fung, which supplies retailers such as Kohl's Corp and Wal-Mart Stores with clothing, toys and other products, said it had suspended production in Vietnam.
Yue Yuen Industrial Holdings, a Taiwan manufacturer with headquarters in Hong Kong, also suspended production. It makes footwear for firms including Nike and Adidas.
Vietnamese Internet users have questioned the motivation and impact of the rioting.
"Young people should be more cautious and avoid being used by bad people. The (foreign) companies have brought jobs — what is wrong with them?" a netizen nicknamed muoihcm commented in the VnExpress report.
The Vietnamese government gave rare permission for the weekend protests, which were enthusiastically covered by state media.
Li Guoqiang, deputy director of the Research Center for Chinese Borderland History and Geography at the Chinese Academy of Social Sciences, said, "It is high-profile propaganda for the Vietnamese authorities and media regarding the collision of ships in the South China Sea that enraged public opinion and resulted in the riots.
"The incident will not only harm relations with China but also endanger Vietnam's international image, especially as an investment and tourist destination."
Wang Jian and Xinhua contributed to this story.
Burning nationalism cornering Hanoi
Vietnam's anti-China protests have turned into turmoil since Tuesday. Companies and investment projects from the Chinese mainland, Taiwan and other Asian countries and regions have been affected. It was reported that Taiwan investors suffered the greatest loss.
This is the most serious riot since Vietnam reunited, and the most stunning attack and looting foreign businesses in East Asia in recent years. Street politics in some Asian countries in recent years have caused havoc for social order and business, but few were like that in Vietnam, which deliberately targeted industrial parks and factories. Workers even ransacked their own factories.
Authorities from the Chinese mainland and Taiwan as well as other countries and regions such as Singapore have lodged stern protests with the Vietnamese government. Some international media, shocked by the chaos, called Vietnam an anarchy-dominated country of burning nationalism.
The turmoil is the outcome of Hanoi's years of anti-China propaganda. Without legitimate grounds and practical capability, Vietnam fabricates and hypes up its jurisdiction over the Xisha and Nansha Islands. This uncompromising stance, in an attempt to bring its people together, has actually cornered itself.
The rising turmoil in Vietnam has jeopardized the interests of foreign investors. Vietnam is probably no longer a rich land for investment and business, but a pariah in the eyes of these investors, especially East Asian investors. Vietnam is making a fool of itself, showing how uncertain its market is.
Vietnam has to offer compensation for the losses incurred to foreign investors, who will not allow Hanoi to duck its responsibilities. Otherwise Vietnam will pay an additional political price.
When large scale anti-Japan demonstrations broke out in China, wherever vandalism took place there was much less damage caused by the Chinese protestors, and public opinion urged prompt reflection.
The Chinese government and mainstream society were clear in their attitude against violence in demonstrations and the vandals were pursued according to the law.
But violent demonstrators in Vietnam, starting Tuesday, were obviously indulged by Hanoi. The situation was still out of control a day later. There was no collective condemnation of the violence by local media.
Arrogance makes Hanoi misjudge the situation in the Asia-Pacific. The geopolitics of the South China Sea will not be easily changed by its harassment.
It's time that Hanoi sober up, or those looters will finally make the whole country suffer. Hanoi's over-tolerance must not test China's patience beyond the limit. - Global Times
Related:
Stop fueling maritime provocation, Beijing tells Washington
Beijing describes Washington's latest remarks on the South China Sea as "inspiring belligerency".
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Philippines violates UN Convention
The Philippines detained 11 Chinese fishermen for unverifiable crime after seizing their vessel near China's Half Moon Shoal in the South China Sea on May 6. On Monday, the Philippines defied China's demand to free the fishermen and charged nine of them with poaching more than 500 endangered sea turtles. Two fishermen, both minors, will be sent back home.
By doing so, the Philippines has violated the United Nations Convention on the Law of the Sea, which it has been trying to use to legalize its claim on China's islands in the South China Sea.
China has indisputable sovereignty over the Nansha Islands and their adjacent waters in the South China Sea. In May 2009, Malaysia and Vietnam jointly submitted to the Commission on the Limits of the Continental Shelf a notification of the two countries' continental shelf claims in the South China Sea, and Vietnam also unilaterally made another submission. In response, China submitted its map of the nine-dash line attached to two note verbales to the UN to refute the two countries' extended continental shelf claims. In the notes, China stated that it has the sovereignty and sovereign rights over the territorial sea and exclusive economic zones of Nansha Islands.
Since Half Moon Shoal is part of the Nansha Islands, Manila has no right to detain any vessel or fisherman fishing in its waters. By doing so, it has violated international norms for the fishing industry, as well as the UNCLOS.
China has been exercising its administrative jurisdiction over the Nansha Islands and its surrounding waters by carrying out normal maritime operations. But of late, Chinese fishermen have not been feeling safe in the South China Sea because of the belligerent attitude of some countries locked in territorial disputes with China.
According to the UNCLOS, after being authorized to fish in some exclusive economic zones, countries should abide by the laws and regulations of the coastal states when it comes to the management and conservation of resources. The coast guard of a coastal state could board and check the relevant documents of vessels fishing in the waters near its coast if they violate these laws and regulations. It could even detain the fishermen. But under no circumstances, should the fishermen (or other people on board the vessels) be subjected to corporal punishment and imprisonment.
Moreover, Manila has failed to honor the regional order. The UNCLOS says the disputing countries should resolve the issue of overlapping economic zone boundaries through agreements on the basis of international law in order to achieve an equitable outcome. In case the disputing countries fail to reach an agreement, they should try to work out a provisional arrangement and, during the transition stage, both sides should avoid taking unilateral actions that could hinder the possibility of a final agreement.
The Nansha Islands are within 400 nautical miles of all the countries locked in the South China Sea disputes. Since China has sovereignty over the islands, its duly exclusive economic zone overlaps with those of the other disputing countries. So it's important that Manila faces up to a sea boundary delimitation dispute with Beijing.
To maintain regional stability and to resolve the disputes in the South China Sea through peaceful means, China and ASEAN signed the Declaration on the Conduct of Parties in the South China Sea in 2002. Beijing's proposal of "shelving the disputes and conducting joint exploration" got positive response from the disputing countries and praise from the international community. This could be regarded as a provisional arrangement for the ultimate resolution of the disputes.
But using its advantageous geographical position and assuming that the disputed areas are part of its territory, the Philippines has been seizing Chinese fishing vessels and detaining Chinese fishermen. Such provocative actions by the Philippines are worsening the already tense atmosphere in the region.
It should thus be clear to the international community that Manila, not Beijing, has violated the DOC and the UNCLOS, as well as further damaged the fragile Sino-Philippine relations. And justice chooses those who choose to side with it.
Contributed by Li Jieyu (China Daily)
Related posts
By doing so, the Philippines has violated the United Nations Convention on the Law of the Sea, which it has been trying to use to legalize its claim on China's islands in the South China Sea.
China has indisputable sovereignty over the Nansha Islands and their adjacent waters in the South China Sea. In May 2009, Malaysia and Vietnam jointly submitted to the Commission on the Limits of the Continental Shelf a notification of the two countries' continental shelf claims in the South China Sea, and Vietnam also unilaterally made another submission. In response, China submitted its map of the nine-dash line attached to two note verbales to the UN to refute the two countries' extended continental shelf claims. In the notes, China stated that it has the sovereignty and sovereign rights over the territorial sea and exclusive economic zones of Nansha Islands.
Since Half Moon Shoal is part of the Nansha Islands, Manila has no right to detain any vessel or fisherman fishing in its waters. By doing so, it has violated international norms for the fishing industry, as well as the UNCLOS.
China has been exercising its administrative jurisdiction over the Nansha Islands and its surrounding waters by carrying out normal maritime operations. But of late, Chinese fishermen have not been feeling safe in the South China Sea because of the belligerent attitude of some countries locked in territorial disputes with China.
According to the UNCLOS, after being authorized to fish in some exclusive economic zones, countries should abide by the laws and regulations of the coastal states when it comes to the management and conservation of resources. The coast guard of a coastal state could board and check the relevant documents of vessels fishing in the waters near its coast if they violate these laws and regulations. It could even detain the fishermen. But under no circumstances, should the fishermen (or other people on board the vessels) be subjected to corporal punishment and imprisonment.
Moreover, Manila has failed to honor the regional order. The UNCLOS says the disputing countries should resolve the issue of overlapping economic zone boundaries through agreements on the basis of international law in order to achieve an equitable outcome. In case the disputing countries fail to reach an agreement, they should try to work out a provisional arrangement and, during the transition stage, both sides should avoid taking unilateral actions that could hinder the possibility of a final agreement.
The Nansha Islands are within 400 nautical miles of all the countries locked in the South China Sea disputes. Since China has sovereignty over the islands, its duly exclusive economic zone overlaps with those of the other disputing countries. So it's important that Manila faces up to a sea boundary delimitation dispute with Beijing.
To maintain regional stability and to resolve the disputes in the South China Sea through peaceful means, China and ASEAN signed the Declaration on the Conduct of Parties in the South China Sea in 2002. Beijing's proposal of "shelving the disputes and conducting joint exploration" got positive response from the disputing countries and praise from the international community. This could be regarded as a provisional arrangement for the ultimate resolution of the disputes.
But using its advantageous geographical position and assuming that the disputed areas are part of its territory, the Philippines has been seizing Chinese fishing vessels and detaining Chinese fishermen. Such provocative actions by the Philippines are worsening the already tense atmosphere in the region.
It should thus be clear to the international community that Manila, not Beijing, has violated the DOC and the UNCLOS, as well as further damaged the fragile Sino-Philippine relations. And justice chooses those who choose to side with it.
Contributed by Li Jieyu (China Daily)
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The US and the Philippines began a two-week military drill on Monday. This "shoulder to shoulder" exercise is widely believed
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Wednesday, May 14, 2014
Car or house buying cooling off measures?
Cooling off measures for car purchases also?
Key points:
(1). Higher percentage of bankruptcies from inability to repay cars HPs than housing loans.
(2). The second largest household debt component, about RM145bil, is paid for an asset that is contracting in value every year.
WHAT are the considerations when you purchase a car?
Are the model and its functions important? Does the status symbol carry more weight? Or affordability is the main concern? Don’t get me wrong, I am not conducting a survey to change my profession. I am just curious to find out the major considerations of purchasing a car.
The topic interests me as car ownership among Malaysians, especially the young adults keep increasing. Many times, their choice of car is somewhat extravagant compared to the income they may be generating at this early stage of their careers.
This issue caught my attention when a news report last month stated that 122,169 Malaysians were declared bankrupt between 2007 and 2013, according to the Department of Insolvency. About 26% of the bankruptcies were due to the inability to settle the hire-purchase payment for vehicles, which involved 33,570 people since 2007.
When I searched further for other causes of bankruptcies, the available information for the period from 2005 to May 2010 indicated that car loans was also the chief reason for bankruptcy during that period. It was followed by 11.8% due to personal loans, 10.9% of bankruptcies due to non-repayment of business loans, and only 7.5% was caused by housing loans. Looking at the statistics, it is significant that for many years, more than one-fourth of bankruptcies in our country had been caused by car loans. It reflects on the household stress in repaying car loans, and this high default rate should trigger some thoughts among the authorities and the people.
According to Bank Negara statistics, as at April 2013, housing loans account for 57.5% of total household debts, while car loans, personal loans and credit cards account for 26.5%, 10% and 6% respectively. It means that the second-largest household debt component, about RM145bil, is paid for an asset that is contracting in value every year.
I wonder how many households are struggling to repay their car loans today, and how many of them, especially the younger generation, have deferred their financial wealth planning because of car loans? With the high percentage mentioned above and the rising household debt, there arises the question of whether cooling-off measures should also be extended to the car industry which is causing severe household stress.
Cooling-off measures for the car industry that can be considered include shorter loan period, more stringent loan-to-income ratio, and to impose certain charges if a car owner purchases additional cars in less than a certain number of years. These measures may help to reduce the number of cars on the road and discourage household spending on private vehicles. In the process, we will also be reducing traffic jams.
As shared in my previous articles titled “Reality Check on Debt Mountain” and “Good Debt, Bad Debt”, a car depreciates 10% to 20% per year based on car insurance calculation and accounting practice. In contrast, housing loans have underlying assets that are likely to appreciate over the long term.
Depreciative asset
Do we want to defer our financial planning instead and trade our opportunity of owning an appreciative asset for a depreciative asset? Perhaps, the authorities should encourage the people to borrow only for very good reasons, and to purchase assets only after thorough research.
This reminds me of an episode that I am personally aware of. It goes back to the early 1900s, when a 16-year-old migrant from China came to Malaya (now Malaysia) to seek a living, with no money in his pocket. Due to his diligence, hardwork and frugality, he was able to marry a young pretty girl ten years later and start a family and they eventually had 13 children.
What was astonishing is that he was able to send 7 of his 8 sons overseas for their tertiary education, all due to his frugality, hardwork and integrity. When he passed away, he was even able to leave behind a legacy of a bus company with over 30 buses and 4 small pieces of land in a small town.
Would this episode stimulate our young people to contemplate about what is best for their future?
Although the cooling-off measures for the car sector may be a new idea to ponder, however, with the Government’s plan to upgrade our public transport facilities and services, it is an area for consideration to increase public transport usage and encourage healthy financial planning in the long run.
After all, if senior executives in major cities like London and Tokyo are comfortable using public transportation to commute in their daily lives, can we not also do likewise (if our public transportation are improved)?
Coming back to the questions I asked in the beginning of this article... while I understand people put emphasis on different features of a car depending on their requirements and stage of life, it is always good to include the affordability aspect in a car purchase decision, so as not to be dragged down by the car which is bought to carry us forward.
P/S: The 16-year-old migrant happened to be my late father. He passed away at the age of 63 in 1962.
Contributed by Datuk Alan Tong
FIABCI Asia-Pacific regional secretariat chairman Datuk Alan Tong has over 50 years of experience in property development. He is also the group chairman of Bukit Kiara Properties. For feedback, please email feedback@fiabci-asiapacific.com. The views expressed are entirely the writer's own.
Related posts:
Key points:
(1). Higher percentage of bankruptcies from inability to repay cars HPs than housing loans.
(2). The second largest household debt component, about RM145bil, is paid for an asset that is contracting in value every year.
WHAT are the considerations when you purchase a car?
Are the model and its functions important? Does the status symbol carry more weight? Or affordability is the main concern? Don’t get me wrong, I am not conducting a survey to change my profession. I am just curious to find out the major considerations of purchasing a car.
The topic interests me as car ownership among Malaysians, especially the young adults keep increasing. Many times, their choice of car is somewhat extravagant compared to the income they may be generating at this early stage of their careers.
This issue caught my attention when a news report last month stated that 122,169 Malaysians were declared bankrupt between 2007 and 2013, according to the Department of Insolvency. About 26% of the bankruptcies were due to the inability to settle the hire-purchase payment for vehicles, which involved 33,570 people since 2007.
When I searched further for other causes of bankruptcies, the available information for the period from 2005 to May 2010 indicated that car loans was also the chief reason for bankruptcy during that period. It was followed by 11.8% due to personal loans, 10.9% of bankruptcies due to non-repayment of business loans, and only 7.5% was caused by housing loans. Looking at the statistics, it is significant that for many years, more than one-fourth of bankruptcies in our country had been caused by car loans. It reflects on the household stress in repaying car loans, and this high default rate should trigger some thoughts among the authorities and the people.
According to Bank Negara statistics, as at April 2013, housing loans account for 57.5% of total household debts, while car loans, personal loans and credit cards account for 26.5%, 10% and 6% respectively. It means that the second-largest household debt component, about RM145bil, is paid for an asset that is contracting in value every year.
I wonder how many households are struggling to repay their car loans today, and how many of them, especially the younger generation, have deferred their financial wealth planning because of car loans? With the high percentage mentioned above and the rising household debt, there arises the question of whether cooling-off measures should also be extended to the car industry which is causing severe household stress.
Cooling-off measures for the car industry that can be considered include shorter loan period, more stringent loan-to-income ratio, and to impose certain charges if a car owner purchases additional cars in less than a certain number of years. These measures may help to reduce the number of cars on the road and discourage household spending on private vehicles. In the process, we will also be reducing traffic jams.
As shared in my previous articles titled “Reality Check on Debt Mountain” and “Good Debt, Bad Debt”, a car depreciates 10% to 20% per year based on car insurance calculation and accounting practice. In contrast, housing loans have underlying assets that are likely to appreciate over the long term.
Depreciative asset
Do we want to defer our financial planning instead and trade our opportunity of owning an appreciative asset for a depreciative asset? Perhaps, the authorities should encourage the people to borrow only for very good reasons, and to purchase assets only after thorough research.
This reminds me of an episode that I am personally aware of. It goes back to the early 1900s, when a 16-year-old migrant from China came to Malaya (now Malaysia) to seek a living, with no money in his pocket. Due to his diligence, hardwork and frugality, he was able to marry a young pretty girl ten years later and start a family and they eventually had 13 children.
What was astonishing is that he was able to send 7 of his 8 sons overseas for their tertiary education, all due to his frugality, hardwork and integrity. When he passed away, he was even able to leave behind a legacy of a bus company with over 30 buses and 4 small pieces of land in a small town.
Would this episode stimulate our young people to contemplate about what is best for their future?
Although the cooling-off measures for the car sector may be a new idea to ponder, however, with the Government’s plan to upgrade our public transport facilities and services, it is an area for consideration to increase public transport usage and encourage healthy financial planning in the long run.
After all, if senior executives in major cities like London and Tokyo are comfortable using public transportation to commute in their daily lives, can we not also do likewise (if our public transportation are improved)?
Coming back to the questions I asked in the beginning of this article... while I understand people put emphasis on different features of a car depending on their requirements and stage of life, it is always good to include the affordability aspect in a car purchase decision, so as not to be dragged down by the car which is bought to carry us forward.
P/S: The 16-year-old migrant happened to be my late father. He passed away at the age of 63 in 1962.
Contributed by Datuk Alan Tong
FIABCI Asia-Pacific regional secretariat chairman Datuk Alan Tong has over 50 years of experience in property development. He is also the group chairman of Bukit Kiara Properties. For feedback, please email feedback@fiabci-asiapacific.com. The views expressed are entirely the writer's own.
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Tuesday, May 13, 2014
Happy Wesak Day, Eject those who sow seeds of hatred
TODAY is an auspicious day in the Malaysian calendar as Buddhists celebrate Wesak Day. Buddhism, like all other religions, espouses peace and harmony among fellow men.
It is a way of life that is meaningful and to be cherished in any society, more so in a pluralistic environment, which is the hallmark of our beloved Malaysia.
Exactly 45 years ago this day, Malaysia as a young country, 12 years of age, experienced its most shameful and infamous day when brother rose against brother resulting in grief, sorrow, bloodshed and loss of life. The psyche of the nation was scarred and is a permanent blot in our history! Have we learnt?
Those who are currently below 45 years of age, or children at that time, will never be able to fathom the deths to which our country descended and the reasons behind it. If in 1966, US President Lyndon B. Johnson was shown rubber trees, in 1969 there was only carnage and untold suffering to show. Yet under able leadership, like a phoenix, Malaysia arose and showed so much more recently to President Barack Obama, 48 years on. We are proud of this.
Lessons were learnt on racial polarisation and the needs of the various communities. Malaysia progressed rapidly to what it is today, a nation which has surpassed most of its immediate neighbours in development.
Yet today, there are destructive forces prevailing which can bring our nation down to its knees in an instant. We have much to learn from religious precepts on tolerance and peace which will contribute to our future well-being.
Former Prime Minister Tun Dr Mahathir Mohamad said: “I think people are not learning from their past. There is no benefit in having confrontation, tension, instability. What’s the good of fighting? You kill each other but in the end what do you get?” Whatever means employed by him to keep rebel-rousers, who were out for political mileage, in check under his watch has made Malaysia what it is today.
Questions are now being raised as to what certain communities have done to merit citizenship and even referred to as trespassers. Is there a memory lapse here? Is this a rational, educated comment to make to fellow citizens borne and bred in Malaysia who are without any form of allegiance or political affection to the countries where their forefathers came from be it Indonesia, China, India, or wherever else!
All have contributed to nationbuilding in one way or the other and all save, the orang asli, are immigrants. These are undeniable facts. Let us not rewrite history based on emotion and be misled by myopic, ill-informed shamans who profess otherwise!
Perhaps this is due to ignorance and the failure of our education system in imparting history correctly. This can be easily remedied by re-education on Malaysian history. Everything needs to be rational and have limits!
All religions fully subscribe to one tenet which is non-negotiable - speak the truth!
Najib has got the correct “thinking cap” on when he says that he is the leader of all Malaysians, irrespective of race. This is the way to go for a united Malaysia. We do not need loose cannons spouting hatred and ill-will through hurtful words.
The Prime Minister has to speak louder and clearer to counter such irrational manifestations. Otherwise a heavy price will be paid in terms of our continued economic development.
The golden years of Islamic civilization, the Renaissance and the Industrial Revolution were all marked by periods of peace and stability
As a nation, we should not forget what it means to be on one ship paddling together in the same direction. We have to be one cohesive force. Those who sow seeds of hatred should be ejected.
We live in a country with many religions yet our conduct in certain instances is anything but religious! All religions call for the bringing together of people irrespective of race, colour or creed to live in a harmonious relationship working for the common good.
We should not be traitors to our Creator, faith and religious beliefs.
Let this Wesak Day which falls on the 45th anniversary of that fateful day, heighten our senses to what can go so terribly wrong in beautiful Malaysia.
As Malaysian citizens we all have a part to play in burning at the stake demonic forces which are threatening to tear our peace loving, tolerant and accommodative way of life apart.
Religion must keep us together and not drive us apart. In the coming years we can be greater if only we do not shoot ourselves in the foot first. Racial and religious intolerance has to be obliterated.
Happy Wesak Day!
Contributed by WALTER SANDOSAM Kuala Lumpur
Related post:
Wishing all a blessed Wesak…
It is a way of life that is meaningful and to be cherished in any society, more so in a pluralistic environment, which is the hallmark of our beloved Malaysia.
Exactly 45 years ago this day, Malaysia as a young country, 12 years of age, experienced its most shameful and infamous day when brother rose against brother resulting in grief, sorrow, bloodshed and loss of life. The psyche of the nation was scarred and is a permanent blot in our history! Have we learnt?
Those who are currently below 45 years of age, or children at that time, will never be able to fathom the deths to which our country descended and the reasons behind it. If in 1966, US President Lyndon B. Johnson was shown rubber trees, in 1969 there was only carnage and untold suffering to show. Yet under able leadership, like a phoenix, Malaysia arose and showed so much more recently to President Barack Obama, 48 years on. We are proud of this.
Lessons were learnt on racial polarisation and the needs of the various communities. Malaysia progressed rapidly to what it is today, a nation which has surpassed most of its immediate neighbours in development.
Yet today, there are destructive forces prevailing which can bring our nation down to its knees in an instant. We have much to learn from religious precepts on tolerance and peace which will contribute to our future well-being.
Former Prime Minister Tun Dr Mahathir Mohamad said: “I think people are not learning from their past. There is no benefit in having confrontation, tension, instability. What’s the good of fighting? You kill each other but in the end what do you get?” Whatever means employed by him to keep rebel-rousers, who were out for political mileage, in check under his watch has made Malaysia what it is today.
Questions are now being raised as to what certain communities have done to merit citizenship and even referred to as trespassers. Is there a memory lapse here? Is this a rational, educated comment to make to fellow citizens borne and bred in Malaysia who are without any form of allegiance or political affection to the countries where their forefathers came from be it Indonesia, China, India, or wherever else!
All have contributed to nationbuilding in one way or the other and all save, the orang asli, are immigrants. These are undeniable facts. Let us not rewrite history based on emotion and be misled by myopic, ill-informed shamans who profess otherwise!
Perhaps this is due to ignorance and the failure of our education system in imparting history correctly. This can be easily remedied by re-education on Malaysian history. Everything needs to be rational and have limits!
All religions fully subscribe to one tenet which is non-negotiable - speak the truth!
Najib has got the correct “thinking cap” on when he says that he is the leader of all Malaysians, irrespective of race. This is the way to go for a united Malaysia. We do not need loose cannons spouting hatred and ill-will through hurtful words.
The Prime Minister has to speak louder and clearer to counter such irrational manifestations. Otherwise a heavy price will be paid in terms of our continued economic development.
The golden years of Islamic civilization, the Renaissance and the Industrial Revolution were all marked by periods of peace and stability
As a nation, we should not forget what it means to be on one ship paddling together in the same direction. We have to be one cohesive force. Those who sow seeds of hatred should be ejected.
We live in a country with many religions yet our conduct in certain instances is anything but religious! All religions call for the bringing together of people irrespective of race, colour or creed to live in a harmonious relationship working for the common good.
We should not be traitors to our Creator, faith and religious beliefs.
Let this Wesak Day which falls on the 45th anniversary of that fateful day, heighten our senses to what can go so terribly wrong in beautiful Malaysia.
As Malaysian citizens we all have a part to play in burning at the stake demonic forces which are threatening to tear our peace loving, tolerant and accommodative way of life apart.
Religion must keep us together and not drive us apart. In the coming years we can be greater if only we do not shoot ourselves in the foot first. Racial and religious intolerance has to be obliterated.
Happy Wesak Day!
Contributed by WALTER SANDOSAM Kuala Lumpur
Related post:
Wishing all a blessed Wesak…
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