US should not politicize Internet

People pose in front of a display showing the word 'cyber' in binary code, in this picture illustration taken in Zenica December 27, 2014. [Photo/Agencies]

Security and other issues related to cyberspace have increasingly affected international relations, leading to a war of words among some major world powers. Openness and freedom are the two basic features of the Internet, through which information freely flows from one person to another and from one country to another, and that is why "freedom" is said to be the founding stone of cyberspace.

But this freedom cannot be limitless and should not challenge the normal order of cyberspace. As Lu Wei, minister of the Cyberspace Administration of China, once said, freedom is the purpose while order serves to protect it. Freedom and regulation are not mutually contradictory. Instead, they are two sides of the same coin.

Besides, since cyberspace, despite being called the virtual world, is intimately connected with the real world, chaos in the former can lead to disastrous consequences in the latter. The riots that rocked London, Birmingham and several other cities in the United Kingdom in 2011 after the death of a black UK citizen and flared up thanks to social networks are a good example of how lack of order in the virtual world can cause mayhem in the real world.

To prevent such tragedies from happening and since all freedoms come with responsibilities and limits, most countries have enacted laws to regulate cyberspace. But some countries, to fulfill their narrow interests, try to politicize the laws that other countries have implemented as a safeguard against the bedlam the misuse of cyberspace could unleash on society.

Take the US for instance. For the past several years, based on its claim that freedom of the Internet is a universal right, it has been trying to promote cyberspace as a public domain together with the Antarctica, the oceans and space, and has thus been avoiding the issue of national sovereignty.

The US' efforts reek of hegemonic philosophy. In fact, the US has been spreading its ideology in other countries through many websites and social networks, so as to trigger political disputes in societies that adhere to political philosophies other than that propounded by Washington. We should not forget that countries like Libya have become victims of the US' promotion of Western-style democracy.

Another reason for the US to talk about freedom of the Internet is to serve its trade and protectionist policies and cause trade frictions with other countries. With its modern technologies and global influence, Washington has been trying to help US-based enterprises enter other countries' markets on the pretext of defending free trade. When Google was pulled up by the Chinese government for violating the country's laws, the US government ironically accused China of not being a "free" country.

As a result, politicization of Internet freedom has become an obstacle to international cooperation. With the dispute over Internet freedom already a major international issue, countries with different understandings of cyberspace accuse each other of violating rules. Some of these differences have even led to trade frictions and protectionist measures.

Worse, other political issues are involved in the disputes over Internet freedom, which can easily turn into wider conflicts and make it more difficult for the related countries to resolve the existing issues.

Therefore, to boost global cooperation countries across the world should avoid pointing the finger against each other to prove whose Internet rules are better.

The author is a senior researcher in cybersecurity at China Center for Information Industry Development, affiliated to the Ministry of Industry and Information Technology.

By Liu Quan (China Daily)

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US is bringing storms to Apec and ploy in South China Sea

Stirring up a storm

US is bringing storms to South China Sea

The 2015 Asia-Pacific Economic Cooperation (APEC) meeting starts in Manila, the Philippines on Wednesday. The suspense is to what extent the US will foist the South China Sea disputes into this economic and trade meeting. Manila has made clear that territorial disputes will not be included on the agenda, but Washington is not resigned to letting it go, but apparently will bring forth the issue on the sidelines of the meeting.

Compared with the horrible terror clouding Europe, the bone of contention in the APEC meeting - the South China Sea disputes - is unworthy of equal attention. France has shut its borders, and several European countries and half of US states are considering whether to shun Syrian refugees. Chaos and turbulence caused by relentless wars continue in the Middle East, and with the path of fleeing blocked, hatred and resentment among the refugees will thrive.

Many believe the US should assume the primary responsibility for the turmoil in Europe. The US has managed to keep terrorism away from of its own turf after rounds of strong interventions in the Middle East with the aid of its European allies after the 9/11 attacks. However, unable to extend their reach to American soil, terrorists have sabotaged Europe time and again, from Madrid to London and recently, Paris.

Now, Washington sets its sights on the South China Sea. It is trying to provoke regional tensions like it did in the Middle East by waving a larger banner reading "pivot to Asia."

The West has been eager to fan the flames everywhere, but excused themselves by claiming they are not cause of the tension.

The question is whether the South China Sea is heading toward turmoil. If it is, the region will probably be doomed. The raging waves in the South China Sea, argued some analysts, are also likely to jeopardize Washington's interests, but compared with the much greater threat and dangers a turbulent South China Sea poses to China, Washington might be willing to take the risk.

The South China Sea is not a powder keg, because countries around the sea have established a community of shared destiny in terms of development. This could be a cushion against aggression in territorial rows. No claimant is willing to head for a showdown in the South China Sea. Tension surrounding China's reclamation of islands in the sea is abating, stretching the elasticity of the other claimants in dealing with the territorial disputes.

Washington is in the middle of instigating more tensions and accepting China's expanding leverage in rule-making, albeit it has launched vocal protests and flexed its muscles by sending warships in the sea.

China is gaining the upper hand in directing the South China Sea issues, which is a guarantee that the region won't be out of control due to Washington's instigation.

For the public good of the entire region, China should exert restraint over Washington's mischief. - Global Times

US ploy in South China Sea bound to fail



President Xi Jinping’s visit to the Philippines for the Asia-Pacific Economic Cooperation meeting from Nov 17 to 19 has quelled speculations that the maritime disputes with the host nation could make him decide otherwise.

Last week Philippines President Benigno Aquino III assured visiting Chinese Foreign Minister Wang Yi that the APEC meeting would focus on Asia-Pacific regional economic cooperation without raising the disputes in the South China Sea, as most members including China had agreed. But the US State Department has hinted that the South China Sea issue could be raised during the meeting despite Manila’s efforts to prevent the agenda from deviating from free trade and sustainable growth in and common prosperity of the Asia-Pacific region.

As the world’s second-largest sea-lane that connects the Indian Ocean and Pacific Ocean, the South China Sea is of great strategic importance to all countries in the region, as well as the US and European countries.

Nearly 80 percent of global trade depends upon maritime transportation, and about one-third of it is carried out through the South China Sea, which sees the passage of at least 40,000 ships a year. The number of oil tankers that sail through the Strait of Malacca, a critical passage through regional waters, is almost three times that of the Suez Canal and five times of the Panama Canal. Two-thirds of the global trade in liquefied natural gas is also conducted through the waterway.

China has more stakes that any other country in safeguarding peace and stability in the South China Sea, because it is a major channel of its global economic network. So ensuring smooth transportation (of energy sources) and navigation through the South China Sea is not only conducive to the shared interests of all Asia-Pacific economies - such as China, the US, Japan, the Republic of Korea and the Association of Southeast Asian Nations - but also economies elsewhere.

China passed the Law on the Territorial Sea and the Contiguous Zone in 1992, and the Law on the Exclusive Economic Zone and Continental Shelf seven years later. It ratified the United Nations Convention on the Law of the Sea in 1996 and publicized the territorial baseline of its mainland and Xisha Islands.

True, it is yet to disclose the territorial baseline of its Nansha Islands, but that does not nullify its legal rights in the surrounding waters, including territorial sea, exclusive economic zones and continental shelf. This makes the entry of US guided-missile destroyer USS Lassen into the waters near China’s islands in the South China Sea last month a violation of international law.

The US’ attempt to justify its action on the pretext of “freedom of navigation” is a rather clumsy argument that ignores some specific clauses in international law, for instance, innocent passage in territorial seas, transit passage in straits used for international navigation, and sea-lane passage through archipelagoes.

Also, the freedom of navigation clause in international law is neither unconditional nor beyond international regulations. Freedom of navigation can neither be above an affected coastal state’s laws and rights in the exclusive economic zones nor can it override other countries’ interests in the high seas.

Washington’s recent provocative moves have infringed upon Beijing’s maritime sovereignty and security in the South China Sea, the United Nations Charter as well as international law. They were also intended to show the US’ military muscles on the pretext of practicing freedom of navigation.

But China is not one to give in when it comes to its territorial, maritime and security interests, and the US is unlikely to succeed in its designs by instigating ASEAN countries to challenge China’s maritime rights in the South China Sea.

The author is deputy director of the China Institute for Marine Affairs attached to the State Oceanic Administration.

By Jia Yu (China Daily)

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Islamic State new killing fields, nothing less than total domination

http://bcove.me/pqcpn5yj

THE news on Saturday felt like double hammer blows. The Islamic State’s slaughter of 129 people in Paris and the Malaysian IS militants in southern Philippines’ plan to form an “official” IS faction in South-East Asia were just plain shocking and sickening.

Back in March I wrote about my fear of the IS and decried how people who profess to want to protect Islam in Malaysia were targeting the wrong people, namely non-Muslims, and particularly the Christians.

It is with deep distress I return to this growing horror which cannot be ignored.

While I do believe our Govern­ment is completely committed to fighting IS’ influence and I am deeply relieved that our police has top-notch intelligence that – as Special Branch Counter Terrorism Division head Senior Asst Comm Datuk Ayob Khan said – ensures “that we are on top of any development concerning militant groups”, this extreme form of militant Islam continues to take root in our midst.

It was reported in October that more than 100 suspected terrorists and militants have been detained under the Security Offences (Special Measures) Act (Sosma) 2012. Among them were Malaysian combatants who had returned from Syria and Iraq, as well as army commandos and civil servants. Over the last few days, more have been detained.

The Star’s report on Saturday that a former Universiti Malaya lecturer, Dr Mahmud Ahmad, who trains suicide bombers, is behind the formation of an IS group that will plan attacks in Malaysia and the region is even more chilling.

More scary was Defence Minister Datuk Seri Hishammuddin Hussein’s revelation on Monday that the IS is targeting Malaysian leaders who are regarded as tagut. Tagut the article explains are “those who have crossed religious boundaries” which is extremely vague.

But it would appear to mean, going by online definitions, people who worship other gods as well as Muslims who “exceed their limits” like legislators who make laws in Parliament. They are deemed to be equating themselves with Allah and challenging Allah’s divine laws.

If these are all possible meanings of tagut, then all our elected representatives and government leaders, Muslim and non-Muslim, are fair game to IS.

In Graeme Wood’s article entitled “What Isis really wants” in the March issue of The Atlantic, he states that IS’ aim is to restore the Caliphate after it ended in Turkey almost a century ago. (Isis or the Islamic State of Iraq and al-Sham is the earlier manifestation of IS).

After some 14 months of fighting, the proponents achieved their goal on June 30, 2014, when their leader, Abu Bakr al-Baghdadi, proclaimed himself as the new caliph and successor to Prophet Muhammad in a mosque in Mosul, Iraq.

his 21st-century construct, however, is global and borderless and as such, al-Baghdadi says he is the leader of Muslims everywhere who must pledge allegiance to him. Failure to do so means being branded as an apostate, which is punishable by death.

Wood quotes Bernard Haykel, described as the leading secular expert on IS ideology, as saying these jihadists are “authentic throwbacks to early Islam and faithfully reproducing its norms of war.”

Haykel further states, “Slavery, crucifixion, and beheadings are not something that freakish (jihadists) are cherry-picking from the medieval tradition” and that IS fighters “are smack in the middle of the medieval tradition and are bringing it wholesale into the present day.”

The Islamic State, according to Wood, also claims that common Syiah practices, such as worship at the graves of imams and public self-flagellation, have no basis in the Quran or the Prophet’s examples.

“That means roughly 200 million Syiah (Muslims) are marked for death. So too are the heads of state of every Muslim country, who have ele­­­­­vated man-made laws above Syariah by running for office or enforcing laws not made by God,” he writes.

He adds this is because the Islamic State is committed to purifying the world of apostates, and presumably tagut, even if it means mass killings. So back to Hishammuddin’s statement that our leaders are IS’ targets. He also declared that the threat will not stop them from fighting the terrorists. Fighting the IS should be every citizen’s responsibility, at least it should be for every citizen who still believes in a multiracial, democratic Malaysia.

At such a dangerous time, I reiterate my appeal to Muslims and non-Muslims to stand together. I cannot believe peace-loving Malaysian Sunnis would agree to IS’ desire to wipe out millions of Syiah Muslims and non-Muslims.

Unfortunately, we still have leaders wanting to play the religious card which sows confusion and suspicion between Muslims and non-Muslims. We have seen the antics of some this year and the latest one is from the Domestic Trade, Cooperatives and Consumerism Minister who is thinking of having mandatory halal and non-halal trolleys in supermarkets.

Thankfully, ever since the proposal came to light, many groups, including Malaysian Muslim Solidarity (Isma), have criticised it.

As Isma president Abdullah Zaik Abdul Rahman opined: It is not practical and “Islam is not about making things difficult”.

Many have also asked: With such thinking, what will follow next? Food courts to have halal and non-halal cutlery? Separate banknotes and coins?

And what about enforcement? Who gets fined if a shopper uses a halal trolley for non-halal items? Said shopper or supermarket owner?

If the minister really wants to help all shoppers, he should insist supermarkets maintain their trolleys well and give them a wash regularly. I have struggled with trolleys with bad wheels, sticky handles and grubby baskets.

Seriously, our leaders have a lot more important things to worry about, like ferreting out more IS recruiters in our schools, armed forces and government, than segregating shopping carts. This is a fight against a deadly, implacable and seductive enemy and we don’t need any distractions like these in the name of religious correctness.

It certainly won’t make us any safer or more Muslim in the eyes of the IS which is intent on annihilating the present world order to replace it with their own.

BY JUNE H.L. WONG

Aunty recalls this memorable line from Aamir Khan’s movie, PK. It is spoken by the central character, an alien stranded on Earth as he clutches the shoe of his friend who was killed in a train bomb blast: ‘Stop protecting your own god, otherwise only shoes will be left on this planet and not people.’ Feedback to aunty@thestar.com.my

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Can France's daring move eliminate Islamic State? Terrorism is modern society's cancer !

France vs ISIS 2015 By Li Min After the brutal terror attacks in Paris, France's Interior Minister Bernard Cazeneuve called for

Can France's daring move eliminate Islamic State? Terrorism is modern society's cancer !

France vs ISIS 2015 By Li Min

After the brutal terror attacks in Paris, France's Interior Minister Bernard Cazeneuve called for the "dissolution of mosques where hate is preached." Earlier this year, French authorities said "Foreign preachers of hate will be deported [and their mosques] will be shut down." The reiteration is taken by many as a renewed demonstration of France's tough response to the attacks.

The tougher the stance France shows, the more embrace it will get from the public. Likewise, after the September 11 attacks, the US Congress rapidly passed a bill to launch war in Afghanistan and later, the ousting of Saddam Hussein won bipartisan advocacy. But reality shows that after attacks, the agitated Western society tends to overestimate the effects of fierce retaliation and underrate the complexity of the origins of terrorism.

Closing mosques where hatred is preached may be interpreted by Muslims in a way France doesn't mean. Frankly speaking, the French government is daring enough to take such a measure and it faces a smaller risk of public opposition than if China and Russia did the same. Countries with which the West has biased opinions have to consider the response from Muslims and primarily criticism from Western opinion.

France's air strikes against the Islamic State (IS) with its Western allies can have some effects, but the IS cannot be uprooted unless the West sends large-scale ground forces or fully supports the Assad regime to fight them.

Even if the IS could be largely crushed, it doesn't make much difference. In the Middle East, there are no political strongmen any more, and its political and social structures have been shattered. Built up by extreme forces taking advantage of the rift, the example of the IS can be repeated easily.

More importantly, the West's bombs can destroy the encampments and ammunition depots, but cannot deal with attire like veils. Nor can the West prevent children from being sent to extreme religious schools or grapple with conservative Islam.

Until now, Osama bin Laden is still deemed by many in the Arabic world as a positive figure fighting the West, which reflects the limitation of the war on terrorism.

Terrorism that originates in the Middle East has been embedded with unbelievable hatred. The West has no measures to counter it, nor can it form a consistent organization to take action. The West has been depressed by the consequences of the Arab Spring.

In the Islamic world, there is no figure or power of authority to advance the regional reforms, and apparently the vacancy cannot be filled from the outside. The Islamic world may be in pressing need of examples where some of its countries completely modernize so as to bring some inspiration.

But such a plan is not realistic in the current situation. In this sense, much of the West's drastic rhetoric only works to show their emotions with problems remaining unsolved. It is merely a response to public opinion.

Terrorism is modern society’s cancer



A series of terrorist attacks in Paris on Friday night have left the world in shock, and all people with a sense of justice will strongly condemn the atrocities. With the Bataclan concert hall, soccer stadium and restaurants as targets, it's obvious that the terrorist attacks were elaborately planned. These are the most severe terrorist attacks the West has suffered in recent years. They are also the most coordinated and lethal terrorist attacks worldwide in recent years.

Since the 9/11 attacks, the cost of anti-terrorism efforts has been increasingly soaring in both developed and developing countries. However, terrorism continues spreading like cancer. Al-Qaeda has been greatly devastated, but Islamic State, a more brutal extremist group, has emerged. The West is suffering from intermittent terrorist attacks, while in some turbulent underdeveloped countries, terrorist attacks have become commonplace in the fight against their governments. In China's Xinjiang Uyghur Autonomous Region, a small number of young people has also embraced terrorism, instigated by extremist ideas, turning Xinjiang into a global anti-terrorist front.

Middle East countries suffering from turbulence and abject poverty are the hotbed of terrorism. Like an airborne virus, it spreads to other regions. Refugees and immigrants from the Middle East have brought some deep-rooted problems to Europe and the US. Europe and the US need new immigrants, but their societies have been resisting the trend, including anti-immigration protests.

People with radical ideas from Europe and the US continue to travel to the Middle East to join jihad. Some of them have returned, carrying the terrorist virus. In many cases, terrorist attacks in Europe and the US are no longer directly launched by terrorist groups from the Middle East. The identity of terrorists and the nature of some terrorist groups have become complicated. It is more difficult to take precautions.

Since it's virtually impossible to reverse globalization, openness and freedom, the system on which societies operate runs counter to the anti-terrorism system. A dangerous element identified by security authorities could be totally free, which means a much higher cost for preventing terrorist acts.

Every government is trying every means to defend themselves from terrorist attacks, but the general understanding of terrorism remains ambiguous and elusive. Geopolitics and ideologies are driving a wedge between different countries. Some countries have double standards over terrorism, imposing a harsh attitude to terrorists on their own turf, but striking a noncommittal and even sympathetic stand on terrorists in other countries.

The rapid rise of IS, to some extent, is believed to being used by the US and Europe to topple Syria's Bashar al-Assad's regime. The US is of two minds in cracking down on IS. Terrorism, by taking advantage of the divergence among major powers, survives and free societies invite intermittent terrorist attacks. Furthermore, terrorism can gain support from some radical forces, and lone wolf attacks could also cause heavy losses as terrorist attacks do.

Terrorism is like a cancer of the world, which requires a long-term fight. As the chance of wars among countries gets slim, terrorist attacks will probably become the most challenging global form of violence.

Source:  Global Times

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Changing the world with words

Yap: If it makes strategic sense, and our gut tells us there’s a market for it, why not?

SETTING up a business and making money is one of the primary goals for most entrepreneurs. Say what you like — that you’re in because you love it, or love to experiment or just have some time to spare — but in the end it boils down to making money.

I came across one interesting business in Malaysia, though, that chooses to prioritise social mission over profit.

Akasaa defines itself as a social enterprise that specialises in projects that bring meaningful change to society through publication and content management. Founded and owned by Angela Yap, the company creates platforms and business models for clients who want to make profit and, at the same time, become leaders in innovative social change.

While that’s a lot to factor in, Yap sums it up as a business with more action than just talk.

Her current project is a book, Dining with Dragons by Carol Selva Rajah, an internationally-acclaimed, Sydney-based chef originally from Malaysia.

“Chef Carol took six years to write this food memoir. She’s written many award-winning books, but this is her first novel, and it may be the world’s first food memoir on Malaya, Malaysia and Singapore by someone of her calibre.

“Food plays a powerful role in human memory. Food memory is a legitimate area of cultural and biological research in many leading schools in the US and Europe,” explains Yap.

She hopes the book will inspire Malaysians to remember how things were, and use these “food memories” as a way to heal as a nation. She says it is one of the first books written from the heart using food as an agent to bring about social change.

Yap seized the opportunity to partner up with Carol just as the book was just about to be printed in Australia by an Australian publisher.

“I read it, I loved it, I wanted to publish it. And we knew exactly where we wanted to drive it. Her Australian publisher relinquished the rights to us,” explains Yap.

Publishing such a book here would be a good example of Akasaa’s philanthropic mission, but the company has moved into a different phase of growth as it is focuses on publishing and training — garnering more project with authors, books and partnerships.

In the context of Malaysians who’ve made a name for themselves in Australia like Carol, Yap says that they are always scouting for such talent. “Books, research and writing have a long incubation. We’ve taken a lot of risks banking on projects for the long term. Our longest one is a 10-year research project on the late Justice Tan Sri Eusoffe Abdoolcader (dubbed by the British press as the Legal Lion of the Commonwealth) — we’re publishing a series of books on him beginning December,” says Yap.

Her job is not an easy one — having to balance between creating a positive image for her clients and partners, bringing about social change and making money. But Yap says all of this is made possible by the great team she has.

“A lot of times, how we assess, market, position and promote a book is extremely unorthodox, but if it makes strategic sense, and our gut tells us there’s a market for it, why not?”

Yap is practical, determined and straightforward. Her passion has garnered her many accolades, one being the Most Successful Woman Award 2012.

Yap once worked in a bank, is a writer (her first love), a “geeky” researcher (a close second love), a former strategist for one of the Big 4 (PWC, KPMG, Deloitte and E&Y) and once signed up with the UNDP for a short stint.

“These things paid the bills. Then came all the pro bono social activism/human rights work with Amnesty (I was on the board of governors) and a few non-profits.

“Everywhere I went, people opened opportunities and doors for me, probably because I was very young and they saw how enthusiastic I was in doing everything,” she recalls, the enthusiasm still very much evident despite the challenges.

Yap believes that a big part of overcoming problems is to not talk about it but learning to meditate on it.

“Being quiet and putting aside time for introspection allows for eureka moments to happen. Solutions come when the mind is clear, and that clarity carries a momentum of its own. Then when you act, it carries gravitas,” she explains.

While it’s always easier to work with clients who have similar values, Yap doesn’t always have that luxury.

“The test is in whether you can bring together many divided interests and make things happen,” she opines.

Lastly, every business owner needs a supportive partner.

“If you want to be successful, find a partner who is supportive of your success.” — By Karina Foo

Immigration & education drive property prices; Secondary property sales may take lead

Immigration and education are two drivers of property prices in cities in the next 10 years to 2024, said property consultancy Knight Frank International.

Its Asia-Pacific reaearch director Nicholas Holt said up to 76,000 Ultra High Net Worth Individuals (UHNWI) from China have immigrated the last 10 years - the highest - while up to 72% of Malaysia’s UHNWI send their children abroad, the highest. (See graphics below).

The cities include London, New York, Hong Kong and Singapore.

Holt was presenting his Wealth Report 2015 updated till third quarter 2015 at the 25th National Real Estate Convention in Kuala Lumpur.

He defined UHNWIs as those with US$30mil and above in investible income excluding their primary residence.

In an Attitudes Survey involving 600 advisors of UHNWIs by Knight Frank, the advisors - bankers included - said about 10% of their Malaysia’s ultra-high net worth clients were considering changing their domicile in the earlier part of this year.

“This compares with an overall 12% in Asia who are considering changing domicile,” said Holt.

Data show drop in primary market transactions

SUBANG JAYA: The ongoing slowdown in the local property sector could see transactions in the secondary property market overtaking that of the primary market.

Citing data from the National Property Information Centre (Napic), PPC International Sdn Bhd managing director Datuk Siders Sittampalam said the economic slowdown has affected transactions in the primary property market this year.

"Siders: ‘Total volume of transactions in the primary market has dropped, and this has also resulted in values dropping. >>

“Total volume of transactions in the primary market has dropped, and this has also resulted in values dropping.

“As such, there will come a time when the secondary market will lead the primary market,” he said at a press conference after the launch of the 25th National Real Estate Convention (NREC) 2015 yesterday.

Siders said it was difficult to provide a specific timeline on when he expected transactions in the secondary market to exceed that of the primary market.

“In terms of value, the primary market will find it harder to match the secondary market due to rising land and building costs,” he said.

Siders said he expected transactions in the primary market to improve once cooling measures imposed on the local property sector have been relaxed.

“Once the economy picks up and Bank Negara backs off on its cooling measures, the primary market will pick up again.”

He also said a drastic hike in interest rates will have an impact on the property sector.

“Over the last few years, the property market had been steadily growing due to various measures such as the developers interest bearing scheme (DIBS). Because of these measures, pricing in the market has been distorted.

“Now, when people have committed to their loans, especially youths and first time buyers, and there is a sudden hike in interest rates, there will be a dip in the market.

“Loans go bad and many properties will go under the hammer. This will not be a healthy market.” Siders said he was hopeful that any interest rate hike by the central bank would be a “sustainable increase.”

Bank Negara maintained its overnight policy rate in September at 3.25%.

The NREC was organised by the Royal Institution of Surveyors Malaysia and the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector, Malaysia.

The event highlighted major concerns for the future of the real estate industry in Malaysia during the current economic period.

BY EUGENE MAHALINGAM

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Penang property market to be resilient on sustained demand

PETALING JAYA: Penang’s property market is expected to stay resilient on the back of sustained demand, especially from Penangites working abroad planning to return and prospective retirees eyeing homes in the state.

“There has been a slowdown in the last year. There are a few categories of investors in Penang; those who are owner occupiers, those who are investors for the cultural developments, those who are in the Malaysia My Second Home (MM2H) and Penangites who work abroad but would like to settle in Malaysia,” said Penang Institute CEO and head of economics studies Dr Lim Kim Hwa (pictured) at the National Real Estate Convention (NREC) 2015 yesterday.

“For the last two categories, the properties in Penang would be priced significantly cheaper, thus I believe the demand in the property sector in Penang would remain rather constant,” concluded Lim during his presentation entitled “Penang: The Next Metropolis”.

In terms of the wider economy, Penang is expected to register a 5% to 6% growth in its gross domestic product (GDP), outpacing the overall country’s growth by 1%, he said, noting that last year, Penang’s GDP grew by 7.4% while Malaysia’s grew by 6%.

According to Lim, Penang contributes 21.8% of the balance of Malaysia’s trade surplus, specialising in machinery, transport equipment and miscellaneous manufactured articles.

“Penang’s economy is more export-orientated, and now there is a better demand for electrical and electronic goods,” he said.

The export sector is expected to improve with the recovery of the US economy and the weaker ringgit, he added.

“It is important that Penang provides the best environment to attract more investments. Penang is the main manufacturing and economic hub for electronic and electrical items. Bayan Lepas is already full. It is important to provide more space for industrial growth.”

Some of the projects and initiatives that are expected to contribute to this growth is the IT-BPO at Bayan Lepas, BPO Prime at Bayan Baru and Changkat Byram, south of Batu Kawan.

Other projects that will benefit Penang overall include the Penang Transport Master Plan, Penang Heritage Arts District – Ilham Penang at Sia Boey, Creative Animation Triggers at Wisma Yeap Chor Ee, and Komtar refurbishment. “All of these projects involve the private sector,” added Lim.

“The Penang Transport Master Plan (PTMP) is the catalyst to [turning Penang into a] metropolis, as it involves alleviating a lot of the problems locally in Penang, especially traffic congestion,” said Lim.

Expected to be completed in 2030, the RM27 billion project would include amenities such as trams for the heritage zones, LRT for the island and mainland, and water taxis.

Lim said Penang is on track to achieving its metropolis status.

“It is an ongoing process, and there is no deadline. Penang aims to transform into an international, intelligent city filled with life. To create a great metropolis, it has to be unique, and it has to attract people to want to live and expand the growth of the city,” he said.

NREC 2015 saw more than 250 participants from the banking, development, property and consultancy industries.

NREC is organised by the Royal Institution of Surveyors Malaysia (RISM) and co-organised by the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS).

Themed “Homes For Generations – Redefining Development Trends”, the convention highlighted concerns for the future of the real estate industry in Malaysia.

By Hannah Rafee / theedgeproperty.com