Nabbed Briton in Malaysia among five terror suspects, married 12 times

KUALA LUMPUR: A part-time English teacher from Britain who fought as an al-Qaeda militant in Afghanistan and Bosnia, is among the latest group of five men arrested for being involved in Islamic State (IS) and other terror groups.

Bukit Aman Special Branch Counter Terrorism Division nabbed the 44-year-old Briton together with a 25-year-old Bangladeshi, a 29-year-old Nigerian, a 31-year-old Indonesian and a 59-year-old Malaysian, who is also a Rela member, in a series of raids in Selangor, Kelantan, Johor and here between Nov 16 and Dec 1.

Inspector-General of Police Tan Sri Khalid Abu Bakar said the British national, a Muslim convert who had been under surveillance for some time, was arrested in Jalan Duta on Nov 16.

“He fought in Afghanistan and Bosnia after joining al-Qaeda. He was working as a part-time English teacher in Penang and we have been monitoring him closely,” the IGP said.

The Nigerian, who had been using his guise as a student in a private college in Petaling Jaya for his terrorism-related activities, was arrested a day later.

Investigators believe that he is actively connected to terror groups in Africa.

Both the Briton and Nigerian have since been deported.

The three other suspects, an Indonesian, a Bangladeshi and a Malaysian, are believed to have links to the IS.

The Indonesian, identified as the leader of the cell, was nabbed on Dec 1 in Benut, Pontian, where he was working as a mechanic.

The IGP said the man had performed the bai’ah (pledge of loyalty) to IS’ “Caliph” Abu Bakr Al-Baghdadi via Facebook in mid 2014.

“We also believe that he is one of the main persons recruiting and sending trained militants to Syria. We suspect that he has been arranging travels for IS followers in Malaysia and other South-East Asian countries,” he added.

It was learnt that the Indonesian had direct connections with known Malaysian militants, including former “The Ukays” band drummer Akil Zainal.

Akil, a Universiti Teknologi Mara graduate, was among the first batch of Malaysians who went to Syria and publicly declared support for militant groups.

The two other cell members, the Malaysian and the Bangladeshi, were arrested in Kota Baru and Klang respectively.

At a separate event, the IGP said Bukit Aman would always be on the alert with threats from the IS and other terror groups.

“We will not compromise when it comes to security. Every action will be taken to prevent bad things from happening in this country,” he said.

The IGP said terror groups, including the IS would not be allowed to gain a foothold in Malaysia, he added.

Asked whether any of the suspects had been planning to launch attacks in Malaysia, he said that was their main agenda.

Nabbed Terrorist Married 12 Times

KUALA LUMPUR: The British national nabbed along with four others for involvement in terrorism activities has a reputation of being a Casanova besides his militant tendencies.

The man has so far married 12 women, including five from Malaysia.

His other past and present wives are from the United Kingdom, Bosnia, Germany, Philippines and Indonesia.

“You could call him a Casanova terrorist,” a source told The Star.

“We have not come across a terrorist who has married so many women. He has been busy on the terror front but his love life is interesting as well.”

Apparently, his modus operandi has been to marry the women and divorce them after a few years.

“He is also suspected of duping the women into marriage for their money,” the source said.

It was learnt that a general manager of a bank was among his former Malaysian wives.

The man, who worked as a part-time English teacher in Penang, had been travelling in and out of Malaysia since 1998.

The authorities suspect that the Briton, who had been interacting with students, could be the head of a sleeper cell for the al-Qaeda in the country.

Source: The Star/Asia News Network

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‘Spin doctors’, public relation gurus in today's political world - an uneasy with online news

Uneasy with the age of spin

The old guard feel uncomfortable with the instant availability of online news and views that might be critical of them or their allies.

UMNO is probably one of the largest political parties in the world relative to the country’s population – with three million members in a country of around 30 million, its members account for almost 10% of the population.

So it came as a surprise that the party’s secretary-general announced that media would not be invited to cover this year’s party general assembly unless they “behaved” themselves.

He has since rescinded this order, but the permanent gripe that the Umno establishment has against some online news portals is that the portals allegedly like to “spin” stories and statements made by senior party-members and ministers, much to the chagrin of the nation’s top leaders.

So what is “spin”?

Spin is a weapon generally employed on a daily basis by politicians, opinion-makers and large corporations with the help of public relations gurus (“spin doctors”) who put out the desired image or message in such a way that the client will be favourably received by the public.

Edward Bernays is called the “father of public relations” for his success at presenting smoking and drinking as acceptable social behaviour in the early part of the 20th century, and he was in fact a spin doctor par excellence who openly talked of manipulating the public mind.

Spin doctoring is readily apparent in the United States political scene where debates are held by competing presidential candidates: both sides will claim victory and their spin doctors will go full throttle to selectively present the respective candidate’s winning points.

It’s also spin if the desired result of the exercise is to paint a negative picture of one’s target; either way, spin is usually associated with deceptive or manipulative tactics, but this is not always the case.

Spin can be disingenuous but not necessarily false: selectively presenting facts and quotes that support one’s position is spin, and it is the same as putting large photographs of certain leaders on the front pages of national newspapers to project a positive image.

Everyone engages in spin – some crudely – while others do so with more finesse, but everyone is actively spinning these days.

My wife’s constant complaint is that Malaysiakini uses a picture of me showing me in an angry mood, gesticulating about something, which she feels does not truly represent my persona.

Here, Malaysiakini could either be unconcerned about how I look (and why should it be?) or it might want to portray me as an angry man without a cause. If it is the latter, then it’s spin.

That said, spin is less effective in the age of the Internet than it was in the old days when a political party had a monopoly over the media. Back then, it was an arduous task for dissenters to make themselves heard, simply because they had no platform to do so.

Now, in the era of social media, the old order feels uncomfortable with the instant availability of online news and views that might be critical of them or their allies.

The old guard do not know how to deal with this new phenomenon, which is why they complain incessantly about the Opposition’s “spin”.

The truth is that every political organisation, large or small, uses spin to maximise its impact on the voting public.

Spin is par for the course in today’s political world and it’s not something we should complain about.

If the level of news reporting and journalistic integrity has stooped too low – if fair reporting has suffered because journalists resort to unethical practices such as plagiarism or manufacturing stories – then the solution would be to set up a Press Council to guarantee that minimum standards of professional excellence are maintained.

News organisations that flout the rules of such a council could be fined, while other measures can be taken to improve news reporting – that is, positive measures – because the unending threats to sue newspapers and online portals for incorrect statements and negative reporting is a waste of the court’s time.

Also, banning newspapers and online media from attending any political assembly is not the answer.

Instead, politicians should learn to be a little thick-skinned: after all, it’s part of the business to be attacked and made fun of, and to be misquoted or selectively quoted in a deceptive way.

If we are going to sue and issue threats every time an opponent opens his or her mouth, no work of serving the people and formulating good policies will ever be done.

Our politicians will be quarrelling and threatening one another for every small mistake, deliberate or otherwise, and if this is allowed to continue, the public will be disenchanted even more by the lack of quality leadership in Malaysia.

A serious change in attitude – a paradigm shift, of sorts – is necessary on the part of our political leaders to avoid this endless bickering and name-calling.

Politicians should learn to regard their opponents as a vital and necessary part of the democratic system that they all claim to uphold, and they should learn to live in harmony with one another as far as possible so that real work can get done.

There is no point taking the hard line over trivialities unless we want to dispense with democracy altogether: running a democracy is never as easy or comfortable as ruling with an iron fist.

It’s so much easier to rule North Korea or Saudi Arabia if you are the top dog there, but if you want democracy to continue, then a little discomfort – a little spin here and there – is a necessary part of political life which really shouldn’t bother anyone too much.

By Zaid Ibrahim All kinds of everything The Star/Asia News Network

Former de facto Law Minister Datuk Zaid Ibrahim (carbofree@gmail.com) is now a legal consultant. The views expressed here are entirely his own


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Penang flood aftermath: design pump system needed to drain out water, fix funding snag ...

Good plan needed to drain water from flood-hit areas PENANG’S drainage system is unable to cope with heavy rain falling within a short ...

Penang flood aftermath: design pump system needed to drain out water, fix funding snag ...

Good plan needed to drain water from flood-hit areas

PENANG’S drainage system is unable to cope with heavy rain falling within a short period of time, said state Local Government, Traffic Management and Flood Mitigation Committee chairman Chow Kon Yeow.

He said the cause of flooding in the state on Sunday night was due to the “very heavy and continuous downpour”.

“In Teluk Kumbar, the occurrence of flash floods can only be remedied by the installation of a more efficient pump system with a higher capacity to drain the water out from the affected area during high tides and rain.

“At the moment, a consultant has already been appointed to come up with the design in a few months for a RM3mil project to upgrade the pump system. Hopefully by the second half of next year, the tender can be called to appoint the contractor to carry out the installation.

“A detailed design is also being drawn up for a RM7.5mil flood mitigation project, approved by the state, in order to upgrade the drainage of Sungai Nipah, Sungai Teluk Kumbar and Sungai Relau,” he said at the launching of the ‘Pedestrian is King’ campaign at Town Hall yesterday.

Chow added that the Irrigation and Drainage Department (DID) had also ordered a developer to clear the clogged drains at its project site in Batu Maung that had allegedly caused a mudslide.

He said the areas affected by the downpour from 7.30pm onwards were Sungai Tiram, Relau, Teluk Kumbar, Bandar Baru Bayan, Kampung Seronok and Batu Maung as well as roads including Jalan Mahsuri, Jalan Tengah and Jalan Sultan Azlan Shah.

“The Sungai Ara catchment also recorded 80mm of rain water in a hour. It would be a different outcome if the 80mm downfall took place over two to three hours, instead of within an hour which made the effect more pronounced,” said Chow.

The categorisation of rainfall intensity exceeding 60mm in one hour is considered very heavy according to the DID.

Bayan Baru MP Sim Tze Tzin urged the state government to immediately implement the southwest district flood mitigation masterplan.

“Developers from southwest district have been contributing to flood mitigation funds. Residents also pay their quit rent diligently.

“It is only fair to start using these drainage contribution funds to upgrade drainage infrastructures within the area,” he said.

Call to fix Penang’s flood funding snag

PENANG will carry improvements on the drainage and irrigation systems if it had the money, said state Local Government, Traffic Management and Flood Mitigation Committee chairman Chow Kon Yeow.

“In the 11th Malaysia Plan, we applied for more than RM800mil worth of projects but none was approved.

“If we have the money, we will, of course, conduct works on Sungai Pinang, Sungai Junjung, Teluk Kumbar and other places,” he told a press conference at 1st Avenue Mall yesterday.

Commenting on the drainage system in the southwest district that was built in the 70s, Chow asked that funds be given so the state could replace the antiquated system.

“Drainage and irrigation is a joint responsibility of the state and the Federal Governments, moreover, the Irrigation and Drainage Department (DID) is a federal agency.”

Meanwhile, state Housing Committee chairman Jagdeep Singh Deo said it was imperative that Sungai Pinang be deepened and widened as scheduled under Phase II of the flood mitigation project.

“The rainy season has started and we need to start work on the second phase as it involves the areas most effected by flood.

“I sent Natural Resources and Environment Minister Datuk Seri Wan Junaidi Tuanku Jaafar a letter dated Dec 1 to ask for the funds for the project (to be released),” Jagdeep, the representative for the constituency, told a press conference.

“The state has done its part and relocated the residents in Sungai Pinang.

“We want the Federal Government to be committed to carry out the RM450mil Sungai Pinang Phase II flood mitigation project.”

Under Phase 1 of the project, the river was widened and deepened from Kampung Rawa to the Dhoby Ghaut bridge.

Phase 2 involves, among others, relocating residents to make way for the project and the rehabilitation of the entire river.

Other flood mitigation projects involve Sungai Juru and its basin (RM80mil) as well as restoration works for Sungai Jawi (RM40mil), Sungai Perai (RM35mil) and their basins.

The projects for Bayan Lepas are estimated to cost RM153mil, Sungai Perai (RM35.4mil) and Sungai Kechil in south Seberang Prai (RM12mil).

Odd job worker Nurjan Md Shabdin, whose house is near Sungai Pinang, said she has experienced flooding as high as chest level during the 50 years that she has lived there.

“There are still snakes and monitor lizards that swim into our houses during the floods. My appliances and mattresses have had to be replaced many times,” she said.

Hammad Noor Abdullah, 41, who has lived there since he was 14, said he had to carry his school uniform in a bag and swim to school when the are was flooded.

“I am hoping the Phase II project is carried out and the village is finally free from floods,” he said.

On a separate matter, Chow said the state government had formed a steering committee and four sub- committees to implement the Penang Transport Master Plan.

“We have the Legal and Finance, Technical, Land Use, and the Strategic Communication committees which I head.”

When asked what the plans were for Eastern & Oriental Bhd’s 131 acres of reclaimed offshore land of Gurney Drive for the STP Phase 2, he said the plans had yet to be finalised.

“Part of it will be given to Ewein Zenith Sdn Bhd and there will be a road, green area, linear park and low-density commercial buildings. It’s just a concept now.”

Chow did not rule out a public consultation on the works should there be a need. Reclamation works on the land is expected to start this month.

Separately, Chief Minister Lim Guan Eng claimed that the Federal Government had sidelined the state.

“Penang has been excluded from the Budget over the years and several projects have also been cancelled.

“The state’s application of RM805mil for flood mitigation projects was rejected and promises to build an LRT system to reduce traffic on the roads have not been fulfilled,” Lim said.

“The request for an upgrade of the Penang International Airport was also not given serious consideration.

“I hope the promise to build a multi-storey car park to increase parking capacity at the airport will not become an empty promise,” Lim said in a press statement.

Coping with flood aftermath

Flood water flowing onto the lane in front of the arrival hall of Penang international Airport in Bayan Lepas.

SPRING-CLEANING was the order of the day throughout Penang due to the extraordinary downpour that lasted more than 10 hours and inundated many areas.
Residents living in Permatang Damar Laut Road felt the full brunt of Mother Nature as their houses were filled with mud after the flood.

About 50 residents held a demonstration, blaming the upgrading works along the road for their plight.

“The project has a poor flood mitigation system. Each time it rains, residents know the area will flood,” said housewife Hasiah Md Isa, 57.

Resident Zulkifli Abdullah, 63, said contractors should dig drains alongside their project.

According to Bayan Baru Umno division chief Datuk Mansor Musa, who was present at the demonstration, the Public Works Department (JKR) is undertaking the project.

“We have contacted JKR along with the contractor in charge of this project, asking them to visit the site and explain the situation. It is important for them to identify the cause of the problem.

“We are now requesting that the contractor pay compensation to the residents affected,” he said.

Kampung Sungai Tiram resident Zaliha Yaacob, 28, said the family spent a sleepless night moving their belongings from the rising water.

“We always expect a flood when it rains but we did not expect it to be this bad,” she said while clearing the mess at her home.

Business owner Lau Kok Peng, 60, was also busy cleaning his popular coffee shop.

“It’s a good thing my shop closes on Monday but there’s a lot of work to do,” he said.

In Teluk Kumbar, 44 flood victims from 12 families have left the evacuation centre for home.

Operations officer Lt Muhammad Aizat Abdul Ghani said flood victims began seeking shelter at the Dewan Perda Kampung Masjid Teluk Kumbar from 8.55pm on Sunday.

“They are from Kampung Sulup, Kampung Nelayan and Kampung Seronok.

“They received sufficient supplies from the Welfare Department during their overnight stay,” he said.

On Sunday evening, heavy rain lashed the island and mainland, inundating several low-lying areas.

Traffic came to a crawl as motorists sought safer routes out of flooded roads.

The state recorded 80mm of rain water in an hour from 7.30pm.

Penang Fire and Rescue operation centre head Y. Anbarasan said rescue personnel, including a boat unit, were dispatched as soon as the first flood distress call was received at 9.32pm.

“At 5.10am (yesterday), we evacuated 37 flood victims from 11 families to Dewan Perda Kampung Masjid Teluk Kumbar.

“There were no landslides but two trees fell in Tasek Gelugor and one in Batu Uban,” he said.

At the Pesta site in Sungai Nibong, ankle-deep water forced some operators to close shop early.

Other flooded areas on the island included Jalan Tengah in Bayan Baru, Bukit Jambul, Relau and Batu Maung.

Penang Island City Council Urban Services Department director Mubarak Junus said about 40 staff members were dispatched to help clean up the mud in affected areas including Permatang Damar Laut, Jalan Kampung Bukit and around the Penang Snake Temple in Bayan Lepas.

“We’ve also deployed backup squads to help clean up the roads and drains, and two teams to help in the garbage collection,” he said.

On the mainland, the worst affected areas were Permatang Tinggi as the river bund there broke, causing water from the river to flow into Kampung Permatang Tinggi, Taman Usaha, Taman Usaha Jaya and Taman Pewira.

Seberang Prai Municipal Council president Datuk Maimunah Mohd Sharif said a special squad and six response teams were dispatched to the affected areas on Sunday night.

“Some of the team members stayed until 1am (yesterday) while some stayed on until 3am to monitor the situation. No residents were evicted,” she said.

She said Seberang Prai district received an average 50mm of rainfall.

The Meteorological Department forecasts cloudy mornings followed by thunderstorms in the afternoons and evenings every day for the entire week until Sunday.

A spokesman from the department said the north-east monsoon would cause the northern region of peninsular Malaysia to receive heavy rainfall late in the day until the end of this month.

Also affected was the Penang International Airport which saw the driveway outside the arrival hall flooded.

When contacted, Penang International Airport senior manager Mohd Ariff Jaafar said there was not much discruption to the airport.

“The prior RM1.5mil flood mitigation project involving the installation of an on-site detention tank helped decrease the water during flash floods.

“There was backflow of water from a monsoon drain for two hours in the evening.

“The volume of water increased to about 69mm at 8pm but the water cleared up in less than 30 minutes,” he said in a text message.

Rainy day for commuters

Long journey home: Cars moving at a snail’s pace along the SPICE indoor stadium in Jalan Tun Dr Awang in Bayan Lepas.

GEORGE TOWN: A torrential downpour which lasted about 90 minutes caused flash floods in several areas in Bayan Baru, Bayan Lepas and Relau near here.

Among the worst affected roads yesterday were stretches of Jalan Sultan Azlan Shah, Jalan Tengah and Jalan Mahsuri.

Many vehicles were stalled in the flood waters which rose to about knee high at some places following the heavy rain which began at about 6.30pm.

The situation was so bad at one point that a stretch of Jalan Sultan Azlan Shah in Bayan Lepas was temporarily closed off to traffic in both directions which worsened the traffic congestion already faced by road users.

Among the places where motorists were caught in traffic jams lasting for more than an hour were Jalan Sultan Azlan Shah and Jalan Tun Dr Awang.

The driveway outside the Penang International Airport’s arrival hall and the roundabout leading to the airport were also flooded, causing vehicles to move at a snail’s pace. Some people could have missed their flights due to the floods and traffic congestion.

The Penang Pesta ground was also hit by the floods. The annual fair began on Saturday.

Penang Works Committee chairman Lim Hock Seng, when contacted, said the rainwater could not flow off quickly enough due to the high volume from the heavy rain.

“The drains are also clogged by rubbish. The Penang Island City Council, Public Works Department and Drainage and Irrigation Department are looking into the matter,” he said.

Among the villages flooded were Kampung Sulup in Teluk Kumbar and Kampung Sungai Tiram in Bayan Lepas where the waters rose up to about 0.6m high.

Kampung Sungai Tiram villager Zaliha Yaakob, 28, urged the authorities to solve the flood woes in the village.

Source: The Star/Asia News Network

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Timely superpower funds from China to ease woes

Fruitful talks: Top Malaysian businessmen having a meeting with Li (centre right) on Nov 23. Also present was Prime Minister's Special Envoy to China Tan Sri Ong Ka Ting (centre left)

Republic’s generous gesture is like prescribing right medicine to a sick patient, say top businessmen.

LAST Monday, Chinese Premier Li Keqiang announced numerous measures to help Malaysia stabilise its financial market, and their positive impact was felt the next day with the gains in ringgit and bonds seen.

For the country, the most significant measure had to be Beijing’s pledge to buy up Malaysian government bonds, which have been hit by foreign dumping since the second half of last year after crude oil prices began to plunge.

For 1Malaysia Development Bhd (1MDB), the sale of its power assets under Edra Global Energy Bhd to state-owned China General Nuclear Power Corporation for RM9.83bil cash was a huge relief. This transaction will help 1MDB cut its debts of RM42bil by about 24%.

And for Prime Minister Datuk Seri Najib Tun Razak, China’s choice of Malaysia to issue the first “silk-road” bond and plan to invest more here is a major diplomatic victory.

As expected, sentiment on the capital market improved the following day. The ringgit rose the highest among emerging-market currencies, while stocks and bonds gained, due mainly to the power deal, according to Bloomberg. The ringgit strengthened 1.3% to 4.2495 a dollar in Kuala Lumpur while the KLCI index rose 0.5%.

On the sale of power assets, Credit Suisse said in its research report on Nov 24: “The sale of the 1MDB power unit is the first step towards resolving 1MDB’s RM42bil debt. We see this news as positive for the ringgit. The sale of 60% of Bandar Malaysia will likely be concluded by year-end. We believe 1MDB would then be wound down.”

Strong ties: (picture left) Najib showing the development of Putrajaya to Li during the latter’s recent visit to Malaysia.

Strong ties: Najib showing the development of Putrajaya to Li during the latter’s recent visit to Malaysia.

To recap, at the Malaysia-China High-Level Economic Forum on Nov 23 in Kuala Lumpur, Li said: “It is imperative to stabilise the financial market. So, we want to assume a market role by purchasing your treasury bonds in accordance with market principles.”

The Chinese premier also said that in the next five years, China was expected to import foreign goods worth US$10 trillion (RM42.6 trillion) and this demand could unleash business opportunities for Malaysian firms.

“A waterfront pavilion gets the moonlight first,” he said, citing a Chinese proverb. This means that Malaysia, being close in terms of distance and diplomatic ties with China, will enjoy the most benefits generated by China’s economic policy.

Li was in Malaysia for four days from Nov 20 to 23 to attend the Asean-East Asia Summit and to hold bilateral talks with Najib.

But Li, who was paying his first official visit to Kuala Lumpur as premier, did not reveal how much Beijing would invest in Malaysian bonds. However, businessmen who know China well believe this bond purchase could be major.

“As the Chinese Premier handles China’s economic policy and affairs, I believe this bond purchase will be significant enough to stabilise the ringgit that is grossly under-valued,” says Datuk Ter Leong Yap, president of the Associated Chinese Chamber of Commerce and Industry of Malaysia (ACCCIM).

Ter was among the 10 corporate captains whom Li met with before speaking at the forum. Ter, in this private meeting, says he had proposed that China buy Malaysian bonds to halt the ringgit’s decline.

Malaysian top businessmen meeting with Premier Li on Nov 23 of 2015. -
Ter (left) sharing a light moment with Li during a meeting as Ong (centre) looks on.

The ringgit, seen as facing further decline due to the impending hike in US interest rates, has been hit by three waves of outflow of foreign funds.

The first came after the crude oil price plunge, the second after the 1MDB saga was highlighted and the third, political instability amid calls for the resignation of the Prime Minister.

The ringgit has lost about 20% of its value to the dollar so far this year. Its fall is the biggest among currencies in the region.

The outflow of funds has not only hit Malaysia’s economy and investor confidence, but also reduced its international reserves tremendously.

Li also announced that China would provide a 50 billion yuan (RM33bil) quota under the Renminbi Qualified Foreign Institutional Investor (RQFII) programme for Malaysian institutional funds to purchase shares and bonds directly in the world’s second largest economy.

In response to this announcement, Bank Negara Malaysia said the RQFII programme would complement the renminbi clearing bank arrangement in Malaysia. And collectively, the initiatives will support the growing bilateral trade, investment and financial flows as well as position Malaysia as an offshore renminbi centre in the region.

In conjunction with Li’s visit, China Construction Bank (Asia) Corporation Ltd announced it would list the world’s first ever 21st Century Maritime Silk Road bond of one billion yuan (RM667.1mil) on Bursa Malaysia. The notes will support China’s “The Land & Maritime Silk Road” initiative.

“These announcements, together with the bond purchase, are significant for Malaysia as they imply that this big economic power is reading Malaysia positively and has confidence in our country. Confidence crisis is a major reason for people dumping the ringgit.

“By making announcements to invest in Malaysia and invite local funds to invest in China, Li is sending two strong signals: China is reading Malaysia positively and this superpower has confidence in Malaysia,” said Ter in an interview.

Chinese daily Nanyang Siang Pau describes Li’s announcements as “gifts” that will stabilise Malaysia’s financial market, while China Press sees these as “timely rain after a long drought”.

During one of his speeches here, Li told Malaysia to get ready for the influx of Chinese tourists, as his government would encourage its people to visit the country.

Chinese tourists, who form a significant portion of in-bound visitors, have declined since the dis­appearance of Flight MH370 last year.

As tourism is high on Najib’s agenda to bring in the much-needed foreign exchange earnings, this influx will cheer Malaysia up.

But China’s generous gesture is not to be taken that it’s all about friendship, though both countries say bilateral ties have been lifted to a new height now. There is the interplay of diplomatic and economic reasons.

It is public knowledge that Beijing appreciates Malaysia’s stance to play down China’s dispute with other nations in the disputed waters of South China Sea, in which China, Japan and several South-East Asian nations, including Malaysia, are territorial claimants.

China’s construction on islands and reefs in the disputed waters has caused diplomatic tension, heightened recently by the United States’ move to send a warship within 12 nautical miles of a Chinese reef in the area.

There are also investment returns and economic benefits in the long run for the Chinese.

“China’s investments in Malaysia is a smart move, contrarian investing at its finest. What the wise man does at the beginning, the fool does at the end. Our fundamentals are intact, ringgit tremendously undervalued,” says Ian Yoong Kah Yin, business development director of Red Sena Bhd.

This former investment banker at CIMB believes Chinese investments will pay as the ringgit should improve to 3.70-3.90 to a dollar by the end of 2016, from current levels of around 4.25 to 4.30.

In response to China’s timely aid, Najib pledged that Malaysia was committed to awarding the Johor Baru-Gemas double-track rail project to a consortium of Chinese companies. Indeed, China’s state-owned construction giants have been awarded local projects worth over RM15bil in the last three years.

Najib also took note of China’s interest in the high-speed rail project between Kuala Lumpur and Singapore, but said this would be decided via international tender.

Referring to the bilateral trade target of US$160bil (RM683mil) by 2017, the Prime Minister said there should be doubling of efforts to reach the level. Annual bilateral trade has exceeded US$100bil (RM426bil) since last year.

Summing up Li’s visit to Malaysia, QL Resources Bhd’s Dr Chia Song Kun says: “All these measures announced by Premier Li during our most trying times will certainly help Malaysia, be it from the economic or political aspect.”

The vice-president of the Selangor/Kuala Lumpur Chinese Chamber of Commerce adds: “Our country is facing a confidence crisis and this has undermined business and consumer confidence. China’s move this time is like prescribing the right medicine to a sick patient.”

By Ho Wah Foon The Star/Asian News Network

A superpower, but not a threat

Premier Li’s visit to Malaysia serves as ‘silent counterattack’ over South China Sea conflict.

600-year-old bond: Li (second from right) and his wife Cheng Hong touring the Cheng Ho Museum during their visit to Malacca. — Bernama

“WE come in peace, as always,” is the strong message sent out by China’s Li Keqiang to Malaysia and other countries in the region during his recent visit.

When the Premier made repeated refe­rence to Admiral Zheng He (or Cheng Ho) in his speeches, he reiterated that the prominent navigator had embarked on his voyages with friendship and peace in mind.

Admiral Zheng He and his Chinese fleet of the Ming Dynasty did not invade the lands they visited 600 years ago, and China has no plans to do so now, too.

China wishes to assure its neighbours that its rise as a superpower in the realms of politics, economy, and military should not be seen as a threat.

On the contrary, it is now offering vast opportunities to cooperate for mutual benefit while insisting on harmonious ties with other countries.

Li, who was on his first official visit to Malaysia as the Premier of China, had inclu­ded Malacca in his itinerary.

Dotted with historical landmarks, the state has a meaningful position in the relations between Malaysia and China.

It was where it all began.

From the Sky Tower observatory deck on the 43rd floor of The Shore shopping complex, Li looked out at the Strait of Malacca, which Admiral Zheng sailed through to dock at the port of Malacca during his voyages.

At the Baba Nyonya Heritage Museum, Li learned about Peranakan culture that came into existence from the interactions between people from the two lands. He also toured the Cheng Ho Cultural Museum, where Admiral Zheng’s warehouse once stood.

But Li’s visit to the state was more than just a walk down memory lane.

Malacca is now the “friendly state” to China’s southern province of Guangdong. This is the first of such status approved by the Cabinet, as the usual practice has been establishing a sister city tie with another foreign city instead of a state-to-state pact.

According to the Chinese Foreign Ministry, Guangdong province is now “actively dovetailing development with Malacca, and making preparations to build a modern seaside industrial park integrating maritime high-tech industries, deep-water wharf and logistics centres”.

The Strait of Malacca is included in the route of the 21st-century Maritime Silk Road, together with the land-based Silk Road Economic Belt, which represents China’s great ambitions to boost connectivity and cooperation with countries in the world.

Malacca Port is also one of the six Malaysian ports to form an alliance with 10 Chinese ports, as specified in a memorandum of understanding signed between both coun­tries during Li’s visit.

Li’s stopover in Malacca, although brief, has reverberating effects. Besides giving an official stamp of approval to the bilateral project in Malacca, Li wanted to get across the message of peaceful exchanges, harmony and inclusiveness.

China Foreign Affairs University vice-president Jiang Ruiping told state-owned news agency, China News Service, that Admiral Zheng’s friendly diplomacy is still relevant today.

It serves as a “silent counterattack” at a time when the international community plays up the South China Sea issue, referring to the territorial row between China and a few South-East Asian nations including Malaysia.

China’s assertiveness over the waters, as illustrated by its recent reclamation activities, has prompted the United States to patrol in the disputed waters. The US Navy has received the support of Japan, which is also embroiled in a territorial dispute with China over islands in the East China Sea.

Opposing the interference from countries outside the region, Li, when speaking at the Asean-China Summit in Kuala Lumpur during his visit, said China sees the high-profile intervention as an act that does no good to anyone.

He said China is committed to peaceful settlement of the dispute through negotiation and consultation.

“Together with our Asean friends, we have the confidence to make the South China Sea a sea of peace, friendship and cooperation for the benefit of all countries in the region.”

 By Tho Xin Yi Check-in China

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Can Asia escape global secular stagnation?

AS we settle down for the end of the year, the picture on the economic front seems to be a bit clearer, although on the political front, the Paris attacks, the downing of a Russian jet by Turkey and continuing refugee migration into Europe have escalated geopolitical risks.

By spreading the war on terror from 9/11 in New York to Paris, consumer confidence in Europe is likely to suffer, depressing already a weak recovery in Spain, Italy and Ireland.

Fed vice-chairman Stanley Fischer, one of the wisest and most experienced central bankers, gave a speech earlier this month in San Francisco on Emerging Asia in Transition. His view was surprisingly upbeat but clear-eyed, noting that a slowdown in Asia is not slow but still impressive. The pattern of growth in Asia has been quite consistent – a period of fast growth before deceleration to a moderate level, and when the economy reaches maturity, as in the case of Japan, a phase of slow growth or stagnation. Fischer explained the growth through two major drivers – trade and demographics.

Export drive: One of the reasons for the Asian success story was the export-driven manufacturing, creating he Asian global supply chain

One of the reasons for the Asian success story was the rise of export-driven manufacturing, creating the Asian global supply chain. But after the global financial crisis of 2007, imports from the advanced countries declined, which was compensated by China’s imports of commodities from the commodity producers.

But once the investment-led cycle in China turned, commodity prices declined sharply and today, demand from the emerging markets also came down. On top of weak demand in the advanced economies, this meant real weak aggregate demand in the world, facing a situation of huge excess capacity in manufacturing and commodity production.

Basically, despite massive monetary creation, the world is facing slower growth with very little inflation in sight, namely, secular stagnation. The second factor for the current situation is demographics. East Asia had a demographic dividend, as a flood-tide of young labour emerged even as global exports took off. But the advanced economies of East Asia are aging, just like the advanced countries of Europe. The 2015 UN World Population Projections show these trends starkly.

The two manufacturing powerhouses, Japan and Germany, have the highest median population age of 47 and 46, and by 2030, just under one in three persons will be over the age of 65. By that time, Korea, Hong Kong and Singapore population would have one in four over the age of 65.

China and the US share roughly the same population profile, with the median age of 37 and 38 respectively, but by 2030, 21% of the US population would be over the age of 65, still higher than the 17% in China.

On the other hand, the younger populations in India, Bangladesh, the Philippines, Indonesia and Malaysia still enjoy potential for high growth, with a median age of not more than 29 years and by 2030, less than 10% of the population would be more than 65. These large population countries, with the right infrastructure and policies, have the potential to grow above 5% per annum, with India leading the charge at 7.5%. We cannot underestimate power of these emerging population giants as new engines of grow.

India is today a US$2 trillion GDP economy, one fifth the size of China, with roughly the same population. When the Philippines and Vietnam (100 and 91 million population respectively) reach the same per capita income as Malaysia, their economy would be in the US$1 trillion class, roughly 3 times the size of either Singapore and Hong Kong today.

On the same basis, Indonesia would be a US$2.8 trillon economy, roughly the same size as France today. One of the factors weighing down markets is the trajectory of interest rates, which are still historically low. The Fed may be interested in raising them back to normal, but the European Central Bank and the Bank of Japan are still committed to quantitative easing.

Emerging market interest rates and corporate borrowing rates have already started rising worldwide and this is, in the short run, negative to growth recovery. However, getting these population giants to move beyond the middle-income trap require huge reforms in many areas, including the power to put in infrastructure, educate the labour force and deal with structural impediments.

Countries like the Philippines and Vietnam are using external pressure, such as signing up to the TransPacific Partnership, to push through reforms even as opportunities for more trade appear. But the headwinds against such reforms are not small. Each country faces its own set of internal obstacles. In some countries, it is antiquated labour and land laws, in others corruption, inefficient state-owned enterprises, and lack of much needed infrastructure. In many, the transaction costs of doing business remain too high to compete effectively. In others, domestic giants resist competition from foreign multinationals that can bring in new knowhow and markets.

At the same time, labour unions and fear for jobs resist the introduction of new robotics and labour and resource-saving technology. All these risk factors collectively produce a global secular stagnation trap, very much like the 1930s, when no single government was strong enough to pull the world out of the global depression.

The US today is no longer in the position to be the lead engine. Even though it is recovering, US consumers are spending less on hardware imports and more on domestic services. Hence, even if emerging markets cut exchange rates to defend their trade positions, the exorable rise in dollar exchange rates spell future trouble because there are limits to the growing size of US trade deficits.

What can Asian countries do to get out of the secular stagnation? The answer lies in the willingness to reform and to restructure the current overdependence on exports, debt and manufacturing/resource exploitation. The willingess to bite the bullet will produce a J-shaped recovery, rather than the current L-shaped stagnation.

But every leader knows that reform is politically unpopular because it hits various vested interests. So all pundits deplore the lack of leadership. Leadership in these times of transition requires guts and will. The only problem is that it often takes someone else’s guts and the need to write the reformer’s own political will.

By Andrew Sheng Think Asian

Tan Sri Andrew Sheng writes on Asian global issues.


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