Brand Malaysia reeling from a thousand cuts

DIPLOMATICALLY SPEAKING
By DENNIS IGNATIUS

duta.thestar@gmail.com

Over the years, scandal corruption and mismanagement, as well as misguided policies have tarnished our country's name.

LIKE it or not, every country has a brand name. When a country comes to mind, people often think of it in a certain way, much like Coca-Cola or Mercedes-Benz. A brand name is more than an image; it is the essence of what a brand represents.

Needless to say, a brand name is a valuable commodity and both countries and companies jealously protect their brand name. What takes years to build can be tarnished almost overnight.

Sometimes a single incident can set back a country’s image by many years. At other times, a country’s image can suffer death by a thousand cuts - a series of unfortunate events or incidents over a period of time that, taken together, paints an unhappy picture.

What of brand Malaysia? For years Malaysia promoted itself as a sensible and stable democracy characterised, above all else, by religious and racial tolerance.

Indeed, we often sold ourselves as a model of inter-faith and interracial harmony and went around inviting others to learn from us.

To many in the Third World, we were the template for successful economic development based on political stability, sound economic strategy and respect for the rule of law.

On the business side, we were considered a safe and exciting place to do business with and invest in.
Investors were assured of strong government support, an efficient bureaucracy and a business environment free of corruption, red tape and political interference. Our English-educated workforce was a decided advantage.

Regrettably, we have not been zealous in protecting our brand name.

Over the years, scandal, corruption and mismanagement, as well as misguided policies, have seriously left brand Malaysia reeling from a thousand cuts.

The Kugan case, the death in custody of Teoh Beng Hock and other high profile cases brought us a great deal of unsavoury international attention. This, together with equally sensational scandals involving our judiciary, seems to convey the view that our whole justice system is in crisis.

As well, the massive PKFZ fiasco, the brazen theft of RMAF jet engines and other outrageous public sector corruption scandals have convinced many foreign observers and businessmen that corruption is now out of hand in Malaysia.

It is not for no reason that Transparency International recently gave Malay­sia its worst corruption ranking ever.

Increasingly, visitors to Malaysia (as well as many Malaysians themselves) routinely complain of demands for bribes and kickbacks at many levels. Are we now destined to become a chronically corrupt state?

Though we tend to play down the extent of corruption in Malaysia, it is negatively impacting our image in more ways than one and may well be related to the declining levels of foreign direct investment.

On the political front, the continued use of detention without trial and limitations on fundamental freedoms have undoubtedly diminished our democratic credentials in the eyes of the world.

At the same time, the attentiongrabbing headlines concerning the caning sentence imposed on Kartika Dewi by the Syariah court, high profile Jakim raids on popular nightspots, the controversy over the use of the word “Allah,” the recent attacks on churches and the desecration of mosques have left many foreigners wondering whether we are heading down the slippery road towards intolerance and extremism.

Of course there are those who will argue that some of these actions are religious imperatives and must not be questioned. The point is we cannot have it both ways: we cannot act in this manner and still hope to cling to the “moderate” label we are so proud of.

Cases of unfair treatment of migrants and foreign workers in Malaysia have not helped either. The United States Senate issued a damning report last year that even implicated some government officials in human trafficking!

This, together with the abuse of migrant workers by their Malaysian employers, has brought shame to our nation and invoked the ire of some of our neighbours.

And then there is the exodus of Malaysians, more than 300,000 in 2008/09, in search of a better life abroad. What does it say to the rest of the world about brand Malaysia when many, including some of our best and brightest, are leaving?

It is clear to those of us who closely monitor Malaysia’s image abroad that brand Malaysia is in trouble. One commentator even went so far as to call us a “failed rich state!” It is nonsense of course, but it is a sign of the shifting perception of Malaysia.

Unfortunately, there are no Band-Aid solutions. Mere slogans or clever publicity campaigns won’t cut it. The scandals, the worsening corruption, the political dysfunction, the decay of national institutions, etc., are symptomatic of a much deeper malaise affecting our nation.

At the end of the day, we need to ask ourselves some hard questions about where we, as a nation, are headed. Foreign observers are certainly asking the question and reaching their own less than flattering conclusions about brand Malaysia.

Prime Minister Datuk Seri Najib Tun Razak issued a clarion call last week for Malaysia to do “something extraordinary.” The most extraordinary thing we can do is to halt the sad decline of our nation and somehow find a way to spark a national renewal.

China tests warming waters for North African role

Midweek
By BUNN NAGARA

Western powers gradually welcome Beijing’s growing contribution to regional maritime security.

AFTER some reflection, US and EU states are now coming round to China’s proposal for clearer national roles in securing international shipping between North Africa and South Asia.

Last November at the UN, Beijing floated the prospect of individual countries policing clearly identified zones through area allotments. A month before a Chinese ship had been hijacked in the pirate-infested region.

The US was cool to Beijing’s proposal at first but now appears to welcome it. The Internationally Recognised Transit Corridor (IRTC) is supposedly a safer stretch of water between the Gulf of Aden and the Indian Ocean, but pirate attacks have lately extended outwards.

With some 40 national navies involved there is no shortage of national interests, but better coordination had always been lacking. China pushed for streamlining operations and has found a positive response from the West.

Some countries are grouped into the US-led Combined Maritime Forces (CMF), the European Union or Nato. Others like Malaysia, India, Russia and China run their operations separately.

Meanwhile, China would now also head the rotating chair of the so-called Shared Awareness and Deconfliction (SHADE) group that has been dominated by the US and EU.

Top CMF and EU naval officials have in recent days warmly welcomed China’s growing role.
This comes as open confirmation of operations already underway. Since its founding in 2008 and through monthly multinational meetings, SHADE has seen the Chinese and other national navies exchanging information in useful and productive ways.

A Hong Kong news report last week said Beijing would now have to increase its naval presence in the Arabian Sea or Indian Ocean region, but this was swiftly denied.

China is careful about its mounting international responsibilities, and even more about foreign perceptions of its intent and conduct.

Chinese officials see the present moment as a double-edged sword. As a time of opportunity it offers China a rare chance to introduce itself agreeably to the world at large, but with turns of anxiety its intentions might also be misread.

Hawks and conservatives abroad were already irked by the prospect last month of Beijing taking over the Indian Ocean refuelling role from Tokyo.

In Japan, ending that function of serving US-led forces in Afghanistan has been blamed on Prime Minister Yukio Hatoyama, but moves in that direction had already been announced in 2007 by then premier Yasuo Fukuda.

The right-wing in Japanese politics in particular has been vocal in seeing a “net loss” for Japan and a “net gain” for China. However, more reasonable and neutral observers draw quite different conclusions.
From each nation whose imports and exports rely on the safety of international shipping, a comparable degree of responsibility in contributing to security is expected. No country is entitled to benefit more from an international security regime than it is prepared to provide for.

Furthermore, by working together, the navies of the various countries tend to develop a better understanding of one another that can help reduce tension and misperception. A mutual confidence-building mechanism comes into play to benefit all parties, replacing suspicion with greater trust.

This trust is particularly pertinent with a rising major power like China. Not only will it help others understand China better, it will also help China understand the rest of the world better as well.

The alternative is a build-down in mutual confidence, to which no party will seriously subscribe. Reason and pragmatism have helped sustain the general welcome for China taking up its due responsibilities.

Beijing’s interests are clear enough: securing the sea lanes for its vital energy imports, and its exports of manufactured goods. Beyond that, it seeks to cultivate a positive international image in its global dealings.

It has thus sought to play down its new central role in SHADE, describing it as a mere coordinating function. It has also repeatedly emphasised the need for the United Nations rather than any particular country to lead in initiatives.

China is aware that the spotlight on it can reveal its willingness to contribute in international concerns, as well as its conduct in multilateral efforts. It is also hoping to avoid allegations of hitching a free ride in international maritime security, while not making too many waves in sailing forth.

Get Paid to Install Malware

Get Paid to Install Malware

Botnets are using affiliate programs to infect PCs.

By Erica Naone

Sites like Amazon offer affiliate programs that pay users for sending them new customers. And now, malware authors, always quick to adopt tactics that work elsewhere, have developed their own affiliate program, which was described in a talk given today at the Black Hat DC computer security conference in Washington, DC.

Kevin Stevens, an analyst at Atlanta-based security consulting company SecureWorks, says sites with names like "Earnings4U" offer to pay users for each file they can install on someone else's PC; the practice is called "pay per install." Stevens found sites offering rates ranging from $180 per 1,000 installs on PCs based in the U.S. to $6 per 1,000 installs on PCs based in Asian countries.

As he researched the practice, Stevens says he discovered a number of companies engaged in pay per install. These companies periodically change their names to dodge the authorities. He also found forums where users shared tips for making more money, and a variety of sophisticated tools developed to make it easier for them to install malware. "It's almost like a real, legitimate business," he said.

People who sign up for the affiliate programs often download "malware cocktails" that they then try to distribute as widely as possible. One common technique is to combine the malware with a video and offer it for download on a peer-to-peer file sharing site. Another is to host the malware somewhere on the Web, and use search engine optimization techniques to attract traffic to it.

Stevens outlined several types of software that a malware affiliate can use. "Crypters," for example, are programs that mask malware from antivirus programs. One popular crypter costs about $75 initially, and then $25 to buy fresh pieces of code that keep the malware masked once antivirus programs have begun to recognize the original. Stevens estimates that it's possible to get by for two to three weeks on each such update.

For about $225, a malware affiliate can multiply his earnings by obtaining a Trojan download manager. This program allows him to pump multiple malware cocktails into each infected PC, getting paid for each one on each compromised computer. One Trojan download manager comes with add-ons that allow a user to harvest e-mail addresses from an infected system, which could then be used to send spam or phishing messages.

Stevens estimates that some of the larger companies offering pay-per-install programs are responsible for about 2.8 million malware installs each month.

Engineering the Computer of the Future, One Atom at a Time

By Charles Q. Choi, TechNewsDaily Contributor, posted: 01 February 2010 06:19 pm ET

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Using computers based on the mind-boggling physics of the quantum world, researchers now hope to simulate reality on the molecular scale better than ever before.

Scientists want to simulate molecules on computers to better understand and improve how they might react – for instance, how a drug might behave in the human body. But attempts to simulate complex molecules using modern supercomputers fall short because increasing the number of atoms they have to analyze leads to an exponential spike in computation time.

"If you simulate anything larger than four or five atoms – for example, a chemical reaction, or even a moderately complex molecule – it becomes an intractable problem very quickly," said researcher James Whitfield, a quantum information chemist at Harvard University. At best, he explained, regular computers only can get a rough approximation of how these systems work.

Quantum computers
 
That is why scientists are now turning to quantum computers, which rely on the bizarre properties of atoms and the other construction blocks of the universe. The world becomes a fuzzy, surreal place at its very smallest levels – things can seemingly exist in two places at once or spin in opposite directions at the same time.

While normal computers represent data as ones and zeroes – binary digits known as bits that they express by flicking tiny switch-like transistors either on or off – quantum computers use quantum bits, or qubits (pronouced "cue-bits") that are both on and off at the same time. This enables them to carry out two calculations simultaneously. In theory, quantum computers could prove incredibly faster than regular calculators for certain problems because they can run through every possible combination at once.
The particles and molecules that scientists want to investigate are quantum objects.

"If it is computationally too complex to simulate a quantum system using a classical computer, why not simulate quantum systems with another quantum system?" said researcher Alán Aspuru-Guzik, a quantum information chemist at Harvard.

Calculating with light
 
The quantum computer the researchers conducted their molecular simulations with relied on photons, or packets of light, as its qubits. While Aspuru-Guzik, Whitfield and their colleagues provided the software and performed key calculations, their collaborators in Australia assembled the hardware and ran the experiments.

Using this two-qubit computer, they simulated the smallest molecular system, the hydrogen molecule, and calculated its energy in terms of how it might react with other molecules. They ran their simulation process 20 times in a row, with each cycle working off the data from the last one, to achieve very precise values. "That's enough precision to simulate experiments with," Aspuru-Guzik told TechNewsDaily.

The great challenge that lies ahead is creating quantum computers with more qubits, which are needed to simulate molecules with more atoms. Although a 2,000-qubit computer would be roughly enough to, say, simulate cholesterol binding with a protein, the most qubits anyone has uncontestably made a quantum computer with so far is roughly a dozen, Aspuru-Guzik said.


"We are now working to make larger experiments to continue our successes with larger and larger systems," said he said.

The research was detailed online in a recent issue of the journal Nature Chemistry.

Facebook plans PHP changes

Facebook plans PHP changes

Hardware saver?

By Gavin Clarke in San Francisco, 1st February 2010 23:24 GMT

On Tuesday, Facebook is expected to unveil changes to PHP, the language that helped make the social networking site a success - along with millions of other web sites.

SD Times has outed the planned change here. Facebook wouldn't provide details when contacted by The Reg but said it would make more details available Tuesday morning, Pacific time.

The changes have been described as either a re-write of the PHP runtime or a compiler for PHP.

A change to PHP would be Facebook's latest donation to the language, which has also had contributions from Microsoft and the former Sun Microsystems over the years.

PHP co-founder Andi Gutmans, said his company Zend Technologies was aware Facebook's been planning a change and told The Reg he thinks it will be "significant." But he wouldn't elaborate further.

"We have to see what come out," Gutmans said. "Generally speaking...I think there's been some good innovation at Facebook. I imagine some of it could help community PHP."

When it comes to run-times, there have been projects such as Caucho's Quercus - a Java implementation of the PHP language - and the Project Zero PHP runtime that have generally failed to get-traction. Gutmans said this was because open-source PHP has remained the industry's de-facto standard.

He's also not overly worried that what Facebook unveiled could lead to a fork of PHP, noting the community is not as political - for example - as the former Sun's MySQL community. He expects what ever Facebook announces to be under a community friendly license and said if it is innovative then he'd be happy to see it find its way into PHP.

He said developers would continue to get their PHP source from the community.

Gutmans noted Facebook might be introducing changes because of the scale of its operations and that changes in the language might help it cut the number of servers it needs.

"We've got to remember Facebook is a very different user - a very atypical user compared to the majority of users. The performance requirements at the scale they run is very different from even heavily loaded web sites that have tens or hundreds of servers. Saving 10 per cent can be thousands of servers," he said. ®

Rewriting European privacy law for digital age

Rewriting European privacy law for digital age

January 31, 2010 by Sophie Estienne Enlarge

European legislation covering the protection of private data is being dragged into the digital age in a potential threat for social networking sites like Facebook where users display foibles, often without a thought for consequences.

European legislation covering the protection of private data is being dragged into the digital age in a potential threat for social networking sites like Facebook where users display foibles, often without a thought for consequences.
 

European Commissioner Viviane Reding cited the arrival of privacy issues raised by such social networking sites when she announced last week a flagship drive to rewrite European law for the Internet generation, turning the old 1995 text into something fit for purpose.

Data protection for private citizens is a sensitive issue in Brussels, which has been in conflict with the United States for years seeking greater controls on personal details gathered under anti-terror drives there.

The European regulators have also successfully pushed web and computing giants Google, Yahoo! and Microsoft to reduce the length of time they hold details that can be classed as personal, such as browser logs.

One of Microsoft's directors, Brad Smith, came to Brussels last week to call for "an advanced framework of privacy and security that is more closely aligned with the ways in which not only computing, but also the interaction between people, is evolving."

All the more necessary as the computer world -- and already public authorities in the US at least -- switches increasingly towards 'cloud' computing, which essentially means the storage of data in shared servers over the Internet.

Clear rules are needed to avert the sort of polemic that erupted around Google's 'Street View' application -- where entire cities are photographed for 'walk-through' online appreciation -- or around each change to confidentiality rules implemented by Facebook.

Canada this week opened a fresh probe into the leading social networking site, following its December decision to no longer allow members -- who number more than 200 million worldwide -- to hide certain details including pictures and personal profile, including lists of 'friends' or group memberships.

Facebook founder Mark Zuckerberg defended the move this month saying "social norms" had changed when it came to what individuals were willing or eager to share.

"In the last five or six years, blogging has taken off in a huge way and all these different services that have people sharing all this information," he said.

"People have really gotten comfortable not only sharing more information and different kinds, but more openly and with more people."

But the result is that Internet searches can bring up very personal details, with studies repeatedly showing how recruiters use these services to 'vet' potential candidates.

A recent addition, by researchers Cross-Tab, shows that 41 percent of recruiters said they had already refused candidates because of details about their lifestyles picked up through this medium. The figure hit 70 percent in the US.

Comments posted online and "inappropriate" pictures or videos can all trigger worries over lifestyle.
Recruiters "are for the most part comfortable searching for information that would be unethical or even illegal to ask a candidate to provide," the authors underlined.

(c) 2010 AFP

Toyota Recall Is Moment to Counter China’s Rise

Commentary by William Pesek

Feb. 1 (Bloomberg) -- Naoto Kan isn’t alone in his “sense of sadness.” He shares it with 126 million Japanese.

Japan’s finance minister is blue over how quickly China is gaining on Asia’s biggest economy. Two years ago, anyone who said China would overtake Japan in 2010 was laughed into submission. Fantasy may soon become reality and the Japanese media can’t churn out enough dire stories about it.

“Generally speaking, it’s a good thing that China and Asia are growing and Japan needs to make efforts to ensure it can benefit from that,” Kan, 63, told reporters in Tokyo last month. “Coming from a generation that experienced high growth, my honest feeling is a sense of sadness.”

Far from being sad, Kan should see this moment for what it really is: one that shakes Japan out of its 20-year slumber.

PricewaterhouseCoopers LLP’s recent prediction that China will overtake the U.S. as the largest economy by 2020 is the talk of Tokyo. It’s shock enough for Japan to fathom playing second fiddle in Asia, never mind China being the globally dominant power 10 years from now. Expect a corresponding surge in sake and whiskey sales around Japan.

Adding insult to injury, the great Toyota Motor Corp. is recalling cars in China, and Japan Airlines Corp. is bankrupt. Add in deflation and the threat of a Standard & Poor’s downgrade and it’s hard not to conclude 2010 is getting off to a dreadful start for Japan.

Silver Lining

The silver lining is the China effect. On the face of it, China’s economy should be larger than Japan’s -- its population is almost 11 times bigger. If China’s currency weren’t 40 percent or so undervalued, it would already be No. 2. As many in Japan say, though, size will matter more when China matches Japan on a per-capita income basis. Japan’s is 13 times China’s.

That’s many a year off, of course. As the process unfolds, Japan could be well-positioned to benefit. What’s so bad about having a massive economy growing 10 percent in your neighborhood? With the U.S. consumer limping along, Japan needs all the demand for exports it can find.

Policy makers in Tokyo are officially out of reasons to delay the radical change Japan needs. To date, they have had more than their share of warnings: the collapse of the 1980s bubble economy, the “Lost Decade” of the 1990s, the Asian crisis in 1997, the U.S. credit meltdown, you name it. They just haven’t answered them, opting to add more debt and yen to punt big reforms forward.

Chinese Jolt

China is a jolt that Japan can’t manage around. Muddling through isn’t an option when the largest manufacturer and exporter is bearing down on you. Also, China is now the U.S.’s main creditor, reducing Japan’s leverage in Washington.

Amid all this China buzz, Japan is left to grapple with uncompetitive labor costs, a rapidly aging population and dwindling fiscal options. If Japanese officials intend to hit the snooze bar and sleep in for a few more years, S&P is standing by to give it a nudge.

S&P last week lowered the outlook on Japan’s AA sovereign credit rating to negative because of diminishing flexibility to cope with the world’s largest public debt. China is making the world quake because of its $2.4 trillion of currency reserves. Japan is spooking the world with its financial frailty.

Stability in China isn’t a given. The immediate risk is overheating. The longer-term problem, the one on which hedge- fund managers are fixated, is that today’s loans may turn sour tomorrow. China must get more serious about asset bubbles and narrowing the gap between rich and poor.

Filling the Void

Even moderate growth from China may help fill the void left by the highly leveraged U.S. consumer. Japanese Prime Minister Yukio Hatoyama is mending ties with China, whose global influence is increasing as America’s declines. Japan still needs the U.S. for security reasons, yet economic realities are drawing its attention toward Asia.

One example of how China could be the catalyst that has eluded Japan is services. An obsession with manufacturing means Japan neglects its services industry, which is a far bigger part of the economy. China’s threat will focus attention where it needs to be: deregulating services and increasing productivity.

And don’t count Toyota and JAL out in the long run. Toyota seems to be taking a page from Johnson & Johnson’s playbook with its total recall. In 1982, J&J pulled millions of bottles of Extra Strength Tylenol from store shelves after someone in the Chicago area put cyanide in the capsules, resulting in seven deaths. The recall restored J&J’s reputation. We could very well be witnessing Toyota’s Tylenol moment.

JAL is now in the hands of electronics tycoon Kazuo Inamori after last month’s bankruptcy filing. His powerful political connections and maverick ways could give him the means to shake up Asia’s biggest carrier by sales in ways that none of his predecessors dared.

China’s great economic leap forward is in many ways a good- news story for corporate Japan. Officials such as Kan clearly hear the alarm bells in their midst and must act accordingly. With China’s arrival, sleeping on the job isn’t an option.

To contact the writer of this column: William Pesek in Tokyo at +81-3-3201-7570 or wpesek@bloomberg.net
To contact the editor responsible for this column: James Greiff at +1-212-617-5801 or jgreiff@bloomberg.net