Promoting women entrepreneurs; mind your finances

Do we need specific initiatives to help female entrepreneurs? Some say no, because men and women face similar obstacles in business. However, there can be no denying that women face challenges not experienced by their male counterparts.

LAST May, the SME Association of Malaysia organised a talk on women entrepreneurship at its regular SME Club get-together. We were worried that the topic would not be interesting, but to our surprise, the event was well received.

About a hundred people participated in the talk.

When we told the SMEs that we were going to have a talk on women entrepreneurship, some of them asked: Why talk about women entrepreneurship? Does it matter? Why bother?

After all, business is a men’s world. The place for women is at home.

Others said there was no need to differentiate women entrepreneurs from entrepreneurs in general, as many of the barriers faced by female-owned SMEs were similar to those faced by male-owned SMEs.

To this, I would say: Yes and no.

While male and female entrepreneurs may face similar constraints in general, women face specific barriers and challenges not experienced by their counterparts.

While women make up about 50% of Malaysia’s population, less than 20% of the SMEs are owned by women. Even though the number for women entrepreneurs is small, it’s nonetheless encouraging as it shows that women no longer buy the stereotype of business being a male domain.

There are several key reasons for women to get into business. Running your own business provides flexibility in managing career and domestic responsibilities.

Also, it gives some degree of personal freedom to women who are dissatisfied with “fixed” employment. Job flexibility, like work hours, office location, environment, and the people they work with, is appealing to many women.

Other reasons for women to start a business include income security and career satisfaction. Some women become entrepreneurs due to some personal circumstances, like being laid off, divorce, or the retirement of their spouse. They start a business to improve or maintain their social or economic status.

Some women who do not have any previous work skills or experience start a business in order to prove that they can be productive and useful.

The majority of women-owned businesses are smaller outifts than those owned by men, and they are mostly concentrated in the service sector (about 90%). Many of these businesses are likely to be unregistered micro-enterprises operating in the home or on temporary premises, with few employees and limited capital for expansion.

Access to financing is one of the biggest challenges. They are less aware of the options relating to loan and grant opportunities. In addition, women usually lack the collateral required compared to men, stemming in part from restrictions on asset ownership.

Women entrepreneurs are also less likely than their male counterparts to have a history of interaction with formal financial systems, lowering their credit-worthiness and potentially raising interest rates on loans assumed.

They also encounter obstacles in accessing opportunities to acquire knowledge and skills that underpin successful entrepreneurship. This may be due to impediments in access to education, training and job experience. These are usually compounded by the demands of domestic responsibilities.

Time constraints further limit women entrepreneurs’ formal networking, which, in turn reduce access to skill and capacity-development opportunities. Formal networks, such as business associations, provide a wealth of information on business opportunities, access to government officials, grants and support programmes, as well as credit credentials and access to loan packages, to name a few.

Good networks provide good access to information and resources. First-hand information allows entrepreneurs to move one step ahead and grab the opportunities. A good pool of resources would help entrepreneurs to survive in bad times and to expand more effectively.

The Government needs to take a proactive role in promoting women entrepreneurs. We need to put in place gender-responsive policies and capacity-building initiatives to address the structural, institutional and socio-cultural inequalities.

It would perhaps be best to start by enhancing their access to finance, which is essential in building a good business foundation.

By Datuk Michael Kang who is the national president of the SME Association of Malaysia.

Mind your finances

Up to 36 of business failures are caused by inadequate financial management, according to a report by the ACCA. —123rf.com

IN GENERAL, more than 50% of startups fail within five years, and up to 36% of business failures are caused by inadequate financial management, according to a report by the Association of Chartered Certified Accountants (ACCA) entitled “Financial management and business success - a guide for entrepreneurs”.

The report says many entrepreneurs are not equipped to make informed and effective decisions about their financial resources.

“Having the right financial capabilities remains vital throughout the life of a business, whether you are just starting out, have an established business or are looking towards a final exit from a firm,” explains Rosana Mirkovic, ACCA’s head of SME policy.

“Businesses are changing and innovating more rapidly than ever, and the financial management needs of organisations must continue to evolve alongside their developments. Recognising the right financial management capabilities is therefore imperative to their success,” she explains.

Mirkovic adds that understanding financial information is vital for offsetting the risk of business failures as it reveals the early warning signs of impending problems.

The report by ACCA addresses the financial literacy skills gap, potentially serving as a guide to those starting their own businesses and are new to financial management.

Business planning plays a critical role at every stage of the business, says the report.

“Preparing a business plan pushes you to identify and assess the opportunities and threats facing your business. It helps ensure that you have an in-depth understanding of your market, the competition and the broader business environment,” it elaborates.

Effective planning takes into account long-term goals, objectives, strategy, tactics and financial review.

ACCA also advises startups to seek good financial advice and involve their accountants or individuals with financial expertise at the planning stage to take full advantage of their expertise in areas such as business planning, raising business finance, tax planning and setting up financial management systems.

Significant financial expertise may be needed to understand and evaluate the different financial options entrepreneurs may have. This includes knowing the company’s financial strength, financing cost, financial flexibility, business control, financial risk, personal finances and business strategy.

“Good financial control offers far more than just keeping track of purchases and sales. Rather than approach financial control as a chore to be left to the bookkeeper, your aim should be to see how the right capabilities can improve your business,” the report advises.

ACCA notes that business owners should gradually develop the capabilities of their in-house financial team.

“Choosing the right solution for your particular business takes careful planning. Your overall investment in financial capabilities — whether you are paying for additional employees, higher salaries for more skilled employees, training costs, use of external providers or upgraded systems — must be affordable and offer value for money,” it adds.

But financial management is at its most powerful when used to drive improvements in business.

Moreover, for many entrepreneurs, it could also lead to a successful business exit. Preparation for a successful exit typically begins far in advance of its final date.

Effective exit planning needs to start early and take into account a whole range of issues like timing, succession, management systems and tax efficiency.

Related posts:

Everybody wins when the world invests in girls and women!

Jun 4, 2016 ... The solution, said Jim and other global leaders speaking in Copenhagen, lies in investing in women and girls, a strategy that is crucial to ...

BDS, the Beidou Navigation Satellite System from China

China launches 23rd BeiDou satellite into space - CCTV News - CCTV.com English
 http://t.cn/R5SsGFc

China eyes Silk Road countries for its Beidou satellite system

18 satellites to launch for BDS by 2018

China on Thursday vowed national efforts to complete its Beidou satellite navigation system to serve global users by 2020, with priority going to countries involved in the new Silk Road initiative.

The current goal of developing China's BeiDou Navigation Satellite System (BDS) is to "provide basic services to countries along the land and maritime Silk Roads and in neighboring regions by 2018, and to complete the constellation deployment of 35 satellites by 2020 to provide services to global users," said a white paper released Thursday by the State Council Information Office.

A "globalized" BDS would have "positive and practical significance" in terms of connectivity around the globe, especially the interconnection between China and Southeast Asian countries under the Silk Road plan, known as the Belt and Road initiative, Huang Jun, a professor at the School of Aeronautic Science and Engineering at Beihang University, told the Global Times on Thursday.

In line with the Belt and Road initiative, China will jointly build satellite navigation augmentation systems with relevant nations and promote international applications of navigation technologies, the white paper states.

To fulfill the 2018 goal, the country plans to launch some 18 satellites for the BDS by 2018, Ran Chengqi, BDS spokesperson, told a press conference on Thursday.

"In priority Chinese cities such as Beijing and Urumqi in Northwest China's Xinjiang Uyghur Autonomous Region, as well as low latitude countries like Thailand, the BDS is capable of offering a positioning accuracy of better than five meters," said Ran, who is also director of China's Satellite Navigation System Management Office.

Since 2015, the country has sent up seven more satellites into space in support of the BDS, including five navigation satellites and two backup satellites, Ran added, citing Sunday's launch of the BDS' 23rd satellite - a backup satellite - as an example.

In 2020, the BDS might offer different positioning accuracy choices and could provide centimeter-level accuracy under certain requirements, said Lu Weijun, a BDS expert at Beijing University of Posts and Telecommunications.

Unique features

Despite being a late starter compared with the US-developed GPS, China's BDS has unique features, Huang said, citing the BDS short-message communication service as an example.

"The short-message communication service is mainly useful in places with insufficient ground and mobile communication capabilities, such as deserts, seas and disaster areas where communication facilities have been destroyed," Lu told the Global Times.

More than 40,000 fishing vessels along China's coastline have been equipped with the BDS application terminals, Ran said, adding that they also provided better communication for islands near the coastline.

The BDS short-message communication service is mainly handled by five Geostationary Orbit (GEO) satellites, Lu said. Located above China, the five GEO satellites mainly serve a coverage area of Chinese territories and the Asia-Pacific region" and "could be used to locally enhance the signal in wartime, when other satellites might have been closed."

An independently designed global navigation and positioning network would also contribute to national security, Huang said. Industrial chain

China is developing chips, modules and other basic products based on the BDS and other compatible systems, and fostering an independent BDS industrial chain, the white paper noted.

"By the end of April, the BDS technology has been applied to more than 24 million terminals and over 18 million mobile phones," Ran said.

It is expected that by the end of this year, up to 50 million mobile phones will have been installed with domestic chips that will be compatible with three satellite navigation systems, namely the BDS, GPS and Russia's GLONASS, Wang Hansheng, vice president of Olink Star, a Beijing-based company that makes navigation satellite system products, told the Global Times.

By Ding Xuezhen Source:Global Times

Related:

China's BeiDou navigation satellite system targets global service ...

China's Long March-7 Rocket shipped to South China's ... May 9, 2016 ... The Long March-7 rocket departed for its launch base in Hainan on ... A container carrying China's new-generation Long March-7 rocket is ... China space station will be completed by 2020, the super "eye" Mar 1, 2016 ... China space station will be completed by 2020, the super "eye" to speed up space rendezvous ... The "eye" is China's newly developed third-generation rendezvous and docking CCD optical imaging sensor. It will be used on China's ... China's Space Age Grows Up As U.S. Space Race ..

World's first Quantum communication satellite to be ...

May 30, 2016 ... China plans to launch the world's first quantum satellite that can achieve ... China space station will be completed by 2020, the super "eye" to ...

China implements Beidou navigation satellite system ... Dec 28, 2011 ... Ran Chengqi, the Director of the China Satellite Navigation Office introduced ..... China plans to launch the world's first quantum satellite that can achieve ... China space station will be completed by 2020, the super "eye".

China achieves double record-breaker: Sky-high and ... Jun 24, 2012 ... [Shenzhou 9: China's 1st Manned Space Docking (Pictures)] ... "Heavenly Palace " in Chinese) is a prototype for China's first manned space station, ...... China plans to launch the world's first quantum satellite that can achieve...

China's Space Age Grows Up As U.S. Space Race ... Jun 25, 2012 ... China has to develop her own space station due to USA ..... China plans to launch the world's first quantum satellite that can achieve ... first..

Smartphones going modular

A near-final prototype of Google’s Project Ara. – Photo : ©Google ATAP

There has been much talk of modular smartphones this spring, after LG released its G5 handset and Google presented a near-final version of its Project Ara.

Modular smartphones differ from regular mobiles thanks to their “building block” design, made up of various interchangeable modules containing different hardware components. These can be switched quickly and easily to boost performance or replace faulty parts.

The current wave of modular smartphones draws on a concept created by a Dutch designer, Dave Hakkens, whose Phonebloks mobile is based on a set of small modules (processor, hard disk, camera, etc.) that can be easily changed and updated.

Once assembled, they form a smartphone with varying levels of performance and functionality, a bit like a desktop PC. As well as making savings for users, a modular design can also help counter planned obsolescence in smartphones.

This idea inspired Google’s Advanced Technology and Projects group (ATAP), who went on to develop Project Ara. Initially presented as a similar project to Phonebloks, comprising almost as many modules as a smartphone has components, the handset evolved, little by little, into a slightly less ambitious prototype presented at the last Google I/O conference in Mountain View, California.

It now takes the form of a smartphone with just six interchangeable modules, including a second display, a camera, memory, a speaker, etc. The screen, processor and RAM are all grouped together in one core block that cannot be modified. A developers’ kit is due to be released in the fall ahead of a planned consumer launch in 2017.

Another smartphone based on the same idea hails from Finland. However, the PuzzlePhone hasn’t been the focus of anywhere near as much media attention as Google’s concept.

This modular mobile only has three interchangeable blocks: one for the display, another for the battery and one main system block housing the processor, memory and camera. It should go on sale before the end of 2016.

The only modular smartphone currently available to buy is the LG G5, unveiled at the 2016 Mobile World Congress in Barcelona, Spain, back in February.

This handset has a slide-out bottom for changing the battery in just a few seconds. As well as its removable battery, additional interchangeable elements can be added to the phone, such as camera and audio modules. The LG G5 is out now priced at around $650.

Check out Project Ara in this video below:



AFP - RelaxNews

Related post:

 One phone to rule all; Fintech, the healthy disruptors of ...

Apr 16, 2016 ... That belongs to the realm of politics and education, which is another story. Andrew Sheng writes on global issues from an Asian perspective.

Dealing with the new abnormal negative interest rate policies with exceptional high debt

Negative rates: ECB president Mario Draghi at the Brussels Economic Forum on Thursday. The ECB and Bank of Japan are already experimenting with negative interest rate policies. – Reuters

HOW can this be normal?

Twenty-nine countries with roughly 60% of the world’s GDP have monetary policy rates of less than 1% per annum. The world is awash with debt, with sovereign, corporate and household debt of over US$230 trillion or roughly three times world GDP.

To finance their large debt and deal with deflation, both the European Central Bank (ECB) and Bank of Japan are already experimenting with negative interest rate policies (NIRP). If these do not work, look out for helicopter money, which means central bank funding of even larger fiscal deficits.

Either way, at near zero interest rates, the business model of banks, insurers and fund managers are broken. Deutschebank’s CEO has recently warned that European bank profits will struggle more as negative interest rates play into deposit rates. No wonder bank shares are trading below book value.

The problem with the current economic analysis is that no one can ascertain whether exceptionally low interest is a symptom or a cause of deep chronic malaise. Exceptionally high debt burden can only be financed by exceptionally low interest rates. The Fed now feels confident enough to raise interest rates, which means that the US asset bubbles will begin to deflate, spelling trouble to those who borrow too much in US dollars, which would include a number of emerging markets.

As Nomura chief economist Richard Koo asserts, the world has followed Japan into a balance sheet recession, with the corporate sector refusing to invest and consumer/savers too worried about outcomes to spend. The solution to a balance sheet (imbalanced) story is to re-write the balance sheet, which most democratic government cannot do without a financial crisis. 

Like Japan, China’s dilemma is an internal debt issue of left hand owing the right hand, since both countries are net lenders to the world. This means that foreigners cannot trigger a crisis by withdrawing funds. The Chinese national balance sheet is also almost unique because the financial system is largely state-owned lending mostly (about two thirds) to state-owned enterprises or local governments. The Chinese household sector is also lowly geared, with most debt in residential mortgages and even these were bought (until recently) with relatively high equity cushions.

Unlike the US federal government which had a net liability of US$11 trillion or 67% of GDP at the end of 2013, the Chinese central government had net assets of US$4 trillion or 42% of GDP. Chinese local governments had net assets of a further US$11 trillion or 123% of GDP, compared to US local government net assets of 45% of GDP. Local governments hold more assets than central or federal government because most state land and buildings belong to provincial or local authorities.

Thus, unlike the US where households own 95% of net assets in the country, Chinese households own roughly half of national net assets, with the corporate sector (at least half of which is state-owned) owning roughly 30% and the state the balance. In total, the Chinese state owns roughly one-third of the net assets within the country, compared to net 4% for the US federal and state governments.

Sceptics would argue that Chinese statistics are overstated, but even if the Chinese state net assets are halved in value (because land valuation is complicated), there would be at least US$7.5 trillion of state net assets (net of liabilities) or 82% of GDP to deal with any contingencies.

Furthermore, unlike the Fed, ECB or Bank of Japan, the People’s Bank of China derives its monetary power mostly from very high levels of statutory reserves on the banking system, which is equivalent to forced savings to finance its foreign exchange reserves of US$3.2 trillion. Thus, the central bank has more room than other central banks to deal with domestic liquidity issues.

What can be done with this high level of state net assets, which is in essence public wealth? My crude estimate is that if the rate of return on such assets can be improved by 1% under professional management, GDP could be increased by at least 1.5 percentage points (1% on 165% of GDP of net state assets).

How can this re-writing of the balance sheet be achieved? There are two possibilities. One is to allow local governments to use their net assets to deleverage their own local government debt and their own state-owned enterprise debt. This could be achieved through professionally managed provincial level asset management/debt restructuring companies.

The second method is inject some of the state net assets into the national and provincial social security funds as a form of returning state assets to the public. People tend to forget that other than the painful restructuring of state-owned enterprises in the late 1990s, which led to the creation of China’s global supply chain, the single largest measure to create Chinese household wealth was the selling of residential property at below market prices to civil servants.

The size of the wealth transfer was never officially calculated, but it paved the way for boosting of domestic consumption by giving many households the beginnings of household security.

The injection of state assets into national and social security funds was not achieved in the 1990s, because the state of provincial social security fund accounting was not ready. But if China wants to boost domestic consumption and improve healthcare and social security, now is the time to use state assets to inject into such funds.

At the end of 2014, Chinese social security fund assets amounted to 4 trillion yuan, compared with central government net assets of 27 trillion yuan (Chinese Academy of Social Science data, 2015). Hence, the injection of state assets (including injection by provincial and local government) into social security funds as a form of stimulus to domestic consumption and more professional management of public wealth is clearly an affordable policy option.

In sum, at the individual borrower level, there is no doubt an ever increasing leverage ratio in China is not sustainable. But the big picture situation is manageable. If the policy objective is to improve overall productivity (and GDP growth) by improving the output of public assets, the timing is now.

By Tan Sri Andrew Sheng who is Distinguished Fellow, Asia Global Institute, University of Hong Kong.


Related posts:

 

 Modern finance and money being managed like a Ponzi scheme!

Mar 5, 2016 ... Modern finance and money being managed like a Ponzi scheme! Economic Collapse soon? Ponzi schemes and modern finance. Andrew...

 Beware when elephants Trump-et! Trump victory a major ...

Mar 19, 2016 ... When bull elephants like Trump trumpet their charge, beware of global consequences. By Andrew Sheng Tan Sri Andrew Sheng writes on...

 Hedge funds invasion of US treasuries puts bond at risk ...

Mar 29, 2016 ... While the Federal Reserve doesn't break out hedge-fund ownership, a group seen as a proxy increased its holdings to a record $1.27 trillion in...

 One phone to rule all; Fintech, the healthy disruptors of ...

Apr 16, 2016 ... That belongs to the realm of politics and education, which is another story. Andrew Sheng writes on global issues from an Asian perspective.

Paedophiles' predators using apps in phone to find and groom potential victims

http://rage.com.my/catching-sex-predators/

https://www.youtube.com/watch?v=nu_WnaEzw-E

Hunters hunted: R.AGE journalists went undercover as 15-year-old girls to meet up with online sex predators who target teenagers. Watch the videos at rage.com.my/predator:

This was among the material gathered by The Star’s R.AGE journalists who went undercover for these meetings.

Six months before paedophile Huckle made global headlines, the R.AGE team had already started its undercover sting operation against sex predators.

During the period, R.AGE compiled material that included obscene images, inappropriate messages and hidden camera footage of the undercover journalists at work.

Malaysia does not have laws against “sexual grooming”, which refers to the process of gaining a child’s trust for future sexual exploitation, even though statistics show it has been on the rise.

Mobile chat apps (WhatsApp, WeChat, BeeTalk, Facebook Messenger, etc.) seem to have become the most popular tools for sex predators in Malaysia, based on Bukit Aman’s statistics.

Since 2015, a whopping 80% of reported rape cases involved sex predators who started out online.

During a sting, R.AGE confronted one such predator, who was propositioning the undercover journalist on WeChat and sending photos of his penis.

“It’s a numbers game,” said the 28-year-old postgraduate student who is a self-confessed sex addict.

“On WeChat and BeeTalk, you can search for people nearby, and filter them based on gender. After I filter out all the men, I just send messages to as many girls as possible.”

The predators then start grooming those who reply to them. They would earn the trust of these children and gradually introduce sex into the conversations.

Another man claimed he is “an expert in massages” and that he had done it on at least two other girls below 15.

The situation has long weighed on Assistant Commissioner Ong Chin Lan, the Bukit Aman Sexual, Women and Child Investigation Division (D11) assistant principal director.

“If we had grooming laws, the authorities might be able to arrest predators like Huckle early on,” said Ong.

“We need to empower our law enforcement agencies.”

Sources: The Star http://rage.com.my/Predator/; http://rage.com.my/catching-sex-predators/

Related posts:

This British monster paedophile defiled Malaysia's kids

Huckle pleaded guilty to 71 charges of sexual offences against 23 children aged between six months and 13 years from an impoverished Chris...

The affliction that feeds on children

PEDOPHILIA is not a new sex crime. What is new is the attention that it is getting in the public arena in Malaysia especially after the cas...

Malaysia-China way to South China Sea disputes: a model of amicable consultations

Taking the cue from both China’s and Malaysia’s approach to South China Sea disputes.

 

Towards 'Diamond 40 Years': File pic showing Datuk Seri Najib Tun Razak(4th left) and Chinese Prime Minister, Li Keqiang (3rd, right) at the group photo session with Malaysian youths during his six-day official visit to China in conjunction with 40th anniversary of Malaysia-China bilateral relations in May 2014 - Bernama

Dialogue 06/05/2016 South China Sea & Sino-US ties - CCTV News - CCTV.com English


RECENTLY, the South China Sea disputes had been hyped up as a hotspot issue in regional security and discussed in almost every regional and international forum, resulting from the high-profile interference of and the manipulation by some powers outside the region.

In fact, this issue should be solved through negotiation and consultation by parties directly concerned.

Furthermore, freedom of navigation in the South China Sea, which has never been affected, has been misinterpreted by some country as “freedom exclusive to its own military vessels and planes” and flexing its muscles.

The illegal arbitration unilaterally initiated by the Philippines has been labelled as a “benchmark of law-ruling” by the West, suggesting that judicial settlement is the only way to solve disputes in the South China Sea.

Meanwhile, the approach of non-conflicting and friendly consultation has been overshadowed by the noise and chaos.

One day, a friend of mine asked me, is Malaysia a claimant in the South China Sea? If yes, why is the Malaysia-China and Philippines-China relations poles apart? This is indeed a good question.

There is no essential difference between the two pairs of ties.

As China’s close neighbours, Malaysia and the Philippines have enjoyed traditional friendship with China.

Both were the first countries to establish diplomatic relations with China among Asean states. However, while the Malaysia-China relationship is “at the best time of history” and on the path to a new era of “Diamond 40 Years”, the Philippines-China relationship is experiencing severe difficulties.

The reason behind such a striking contrast lies in the different ways the two claimants chose to deal with the disputes with China.

While Malaysia has consistently been committed to maintaining friendly relationship, properly handling disputes, strengthening cooperation and enhancing comprehensive strategic partnership with China, the Philippine president Benigno Aquino III, on the contrary, misjudged the international situation, acted as a pawn of an outsider’s geopolitical strategy, and chose to confront China.

China and Malaysia Set a Model of Amicable Consultations

China and Malaysia enjoy a time-honoured friendship. There are lots of historical records in China about the Malay peninsula since the Tang and Song Dynasties.

In the 15th century, the Ming Dynasty established close relations with the Sultanate of Malacca. Over 600 years ago, Admiral Zheng He stationed at Malacca five times during seven voyages.

He promoted friendship, developed trade and maintained justice in the area. From Admiral Zheng, people have learned the essence of Chinese culture where peace and good neighbourliness always come first.

They do believe that China has no gene of expansion, plunder or aggression. Instead, China can be a trustworthy friend and reliable partner of Malaysia.

Then Prime Minister Tun Razak first adjusted the policy on China 42 years ago with strategic insight among Asean leaders in the context of the Cold War.

He went to China for “an ice-breaking trip” and signed the Communiqué of the Establishment of Diplomatic Relations with Premier Zhou Enlai which opened a new chapter in bilateral relations. Since then, China and Malaysia have helped each other and overcome many difficulties hand in hand.

The relations between the two countries have taken a lead in China’s relations with Asean countries and set a model of friendship in the region.

After four decades, bilateral relations between China and Malaysia are full of vitality and stimulus with deeper mutual trust, frequent high-level visits, constant party-to-party and local exchanges and fruitful cooperation.

China has become Malaysia’s largest trading partner for seven years and Malaysia is China’s largest trading partner in Asean for eight years, and sixth largest in the world.

The bilateral trade volume has reached US$100bil (RM407.5bil). There are also many iconic cooperation projects.

The high-tech cooperation has reached the skies and seas. Malaysia has long been a popular destination for Chinese tourists.

Consulates-general in Kota Kinabalu and Penang and Nanning have been set up. The Malay Studies Centre was established in the Beijing Foreign Studies University and the Confucius Institutes were set up in Universiti Malaya and Segi University.

Xiamen University Malaysia Campus welcomed its first batch of students this year. Pandas Xing Xing and Liang Liang settled in Zoo Negara and gave birth to a baby panda named “Nuan Nuan”, reflecting our heartwarming bond.

Bilateral cooperation in finance, technology, defence and other fields is also striding forward. The seed sowed by the leaders has grown into a flourishing tree, blossomed and yielded fruits.

It is normal for neighbours to have differences and problems. Malaysia is one of the claimants in the South China Sea.

However, this has never hindered the development of our relations. The key is that the leaders of both countries weigh the situation in the perspective of history and experiences, recognise the trend of the world and always place cooperation and mutual development as a priority.

The leaders have frequently exchanged views on the issue of the South China Sea and reached a series of important consensus.

Both sides agree to deal with disputes through friendly consultations and dialogues, avoiding the issue of sabotaging the bilateral relations.

Furthermore, both China and Malaysia object to intervention by forces outside the region. When the Philippines was unilaterally pursuing the South China Sea arbitration case in May 2014, Prime Minister Datuk Seri Najib revisited China to celebrate the 40th anniversary of the establishment of diplomatic relations.

During the visit, the Joint Communiqué signed by the leaders reaffirmed a series of important consensus.

Both sides emphasised that “all sovereign states directly concerned shall exercise self-restraint and settle their differences by peaceful means, through friendly consultations and negotiations, and in accordance with universally recognised principles of international law, including the United Nations Convention on the Law of the Sea 1982.”

Both sides recognised that “intervention or involvement of parties not directly concerned could be counter-productive and further complicate the aforementioned differences.”

It is based on such consensus that the two sides have properly managed their differences, pushed forward their relations, benefited the two peoples and set a good example for regional countries in dealing with disputes.

Unilateral Arbitration is a Wrong Option

The Philippines’ conduct was contrary to Malaysia’s friendly and proper handling of the disputes with China.

In recent years, President Aquino abandoned the commitment of the former government, relied on a superpower to hype up the disputes in the South China Sea, and insisted on confronting China.

He became world “famous” as the arbitration case is a farce. When his term ends, apart from the severe consequences of undermining the China-Philippines traditional friendship, his political legacy will only be piles of bills from the tribunal.

China and the Philippines have a long history of friendly exchanges. The two countries established diplomatic relations in 1975, only one year after China and Malaysia.

Until 2012 when the Philippines deliberately stirred up the Huangyandao Incident and went on a path of confrontation, relations between the two countries had developed soundly and stably with fruitful cooperation in various fields which brought tangible benefits to their two peoples.

For instance, it was China and the Philippines that first launched joint maritime seismic undertaking which became a precious endeavour in the South China Sea.

The two sides launched friendly negotiations and achieved positive outcome in establishing dialogue mechanism, carrying out pragmatic cooperation and promoting joint development.

During President Arroyo’s visit to China in 2007, both sides praised the relations between two countries as a “golden era”.

It is deeply regrettable that on the occasion of the 40th anniversary of the establishment of China-Philippines relations in 2015, the bilateral ties were upset by the arbitration case, instead of entering a “diamond era” from the “golden era” as China and Malaysia has.

Compared with the breadth, depth and warmth of the friendly interaction between China and Malaysia, shouldn’t the Philippines introspect itself?

As a Chinese old saying goes, “close neighbors are more important than remote relatives.” Forces outside the region may come and go whenever they want, but China and Philippines are neighbours that cannot move away from each other.

As a country committed to regional peace and stability as well as promoting economic development, China sincerely welcomes all the regional countries to take a ride together for deeper mutual benefit and win-win cooperation.

The Philippines’ inflexibility on the arbitration case will only sacrifice its own opportunities and interest.

Amicable Consultation is the Only Way Out

People in littoral states along the South China Sea have lived for a long time in peace and harmony, ready to help each other when in need. Although in the 1960s and 1970s, some changes took place and new problems emerged, China and Asean states have consistently engaged in dialogues and communication and maintained overall peace and stability at sea without interference from powers outside the region.

The Declaration on the Conduct of Parties in the South China Sea (DOC) signed by China and Asean in 2002 has played an indispensable role.

Even if the South China Sea issue heats up, China will still stick to settling disputes through negotiation and consultation in a peaceful way. China has also proposed the “Dual Track Approach”, that is, the relevant disputes should be solved by the sovereign states directly concerned through consultation and negotiation, and that peace and stability in the South China Sea should be maintained through joint efforts of China and Asean member states.

The approach is in full accordance with international laws and practices, and has been supported by most of the Asean countries including Malaysia and Brunei which are also claimants in the South China Sea.

History will prove again that friendly consultation is the right way to settle the disputes in the South China Sea.

China is strongly opposed to the unilateral action by the Philippines and China’s position of non-acceptance and non-participation in the arbitration case will not change.

The new Philippine Government should discard illusions and return to the right track. As a matter of fact, Malaysia and Brunei have already set good examples.

Just as Chinese Foreign Minister Wang Yi stated, the arbitration case is a knot that has impeded the improvement and development of China-Philippines relations.

As to how to untie the knot, it depends on the Philippines. China wishes that the new Philippine Government will make a wise choice in consideration to improving the relations and enhancing mutually beneficial cooperation between the Philippines and China.

The Philippines should cease its arbitral proceedings, refuse to be a pawn anymore and return to bilateral negotiation with China.

China is standing ready to commit itself to full and effective implementation of the DOC and making continuous efforts with all relevant parties to maintain peace and stability in the region.

Dr. Huang Huikang

The writer is the Ambassador of the People’s Republic of China to Malaysia. The views expressed here are the writer’s own.

Related posts:

China, the shy superpower

This once sleeping dragon has taken full flight but believes in flapping its wings softly to allay fears of its real intentions.  Visi...

Analysts pooh-pooh US Defence Secretary's 'self-isolation' as an exaggeration

Analysts refute Ashton Carter's China 'self-isolation' claims SINGAPORE - US defense secretary's China "self...

China urges Philippines to quit arbitration; Pushes back against US pressure

China urges Philippines to immediately cease arbitral proceedings > http://english.cctv.com/2016/06/09/VIDESodRMnJFJdiaDZ3JKzuo16060...

China, the shy superpower

This once sleeping dragon has taken full flight but believes in flapping its wings softly to allay fears of its real intentions. 

Vision and ambition: Xi (right) speaking with US Secretary of State John Kerry at the end of the eighth round of the US-China Strategic and Economic Dialogue at the Great Hall of the People in Beijing, China. — EPA

TWO years ago, it was predicted that China’s economy would surpass the United States as the world’s biggest. But instead of rejoicing and thumping its chest, the Chinese government strenuously sought to play it down.

This led to several articles on the Internet sporting headlines like “Why China doesn’t want to be number one”, “Why China hates being No. 1” and “China ‘fearful’ of becoming world’s number one economy”. This was in the first half of 2014.

Indeed, China was declared No. 1 by the end of that year but with the slowing down of its economy, it has slipped back to second place with the United States taking back the pole position.

Beijing must have heaved a sigh of relief but to many, China is still the power to reckon with. After all, the ambitious One Belt, One Road (Obor) Initiative launched by President Xi Jinping in 2013 remains a key strategy, through which China will become an undisputed regional and global power.

In fact, even if its economy is now second to the United States, China is widely seen as the superpower of the 21st century. But that is also a title Beijing is extremely uncomfortable with and one which Chinese leaders reject vehemently.

“China is not a superpower, we are still a developing country ... we have a long way to go to realise modernisation” was how Chinese premier Li Keqiang responded to questions from visiting editors from Asia News Network in Beijing on May 31.

Granted, China is a very big country and there are still millions among its 1.3 billion citizens who need to be lifted out of poverty. But by just about every yardstick, China measures up to superpowerhood.

By some reckoning, it achieved that status when it successfully detonated its first nuclear bomb in the late 1960s. Since then, it has built up a formidable military force with the world’s biggest standing army of 2.2 million.

Results from a survey in Australia and major Asian countries by a group of regional think tanks released last week showed that a wide majority of Australians and significant numbers of Asians already consider China more powerful than the United States.

China, once the sleeping dragon, is fully awake and airborne, creating huge turbulence and strong winds that are felt across the globe.

But no, “there are no grounds for China to become a superpower and neither does China have the intention to be one,” Li told the ANN editors.

Neither does it see itself as a Big Brother but a good friend to all, regardless of size and wealth.

The same consistent message of assurance was given by Jin Liqun, president of the Asian Infrastruc­ture Investment Bank (AIIB), when he met the editors in a separate session.

The AIIB was one of the financial institutions created to support Obor, now renamed the Belt and Road Initiative, which came about because China was dissatisfied with existing multilateral lending entities like the World Bank, the International Monetary Fund and the Asian Development Bank.

But the AIIB has also created suspicion and skepticism over China’s motives.

The eloquent Jin, who fielded a wide range of questions, kept to the script which was to give the assurance that China had no ill intentions and that the AIIB would be fully transparent in its activities and guided by three principles in choosing the projects to fund, namely that they must be financially sustainable, environmentally friendly and socially acceptable.

What’s more, he pointed out that if the AIIB is so bad, why have 57 countries become members and another 30 on the waiting list?

Why indeed. While he admitted that the AIIB had an international trust and credibility issue, he bristled when I suggested that nations signed up because they were basically hedging their bets.

After all, which country wouldn’t want the chance to get their development projects funded by a new lender in town? It is no skin off their nose.

Neither did Jin take kindly to my comment that he had painted a very rosy picture of the bank and its aims.

“I take issue with you. I never pick the rosy pictures, I always pick the realistic pictures,” he said.

Yet for all his claims of openness and transparency, no editor could pin him down on details on the type of projects that the AIIB would fund and the shortcomings of existing development banks that led to the creation of the AIIB.

Instead, Jin quoted from Jane Austen’s Mansfield Park, “Skepticism must always be forgiven, you know, because there is no hope of a cure”, substituting “selfishness” in the original text with “skepticism”.

Even though the editors met Jin and Li separately, their answers to all the questions were essentially same: China comes in peace; all it wants is cooperation and stability; it believes in prospering with its neighbours and has no desire to bully any country, no matter how small or weak; and it definitely has no wish to be a superpower.

As the Chinese say, you can talk till your saliva dries up but to no avail. China is just too massively important and influential, and it also harbours ambitions that go beyond military and economic ascendancy.

It is, as the BBC puts it, even “supersizing science” in its quest to become a global leader in science and technology. One of its most visible efforts is the building of the biggest radio telescope, the 500m Aperture Spherical Teles­cope, that when completed in September, will dwarf the current title holder, the 300m Arecibo Observatory in Puerto Rico.

It is also making huge investments in medical research and in the exploration of both inner and outer space. Its scientists have built a vessel to explore the world’s deepest oceanic trenches, all in the name of science.

But even that has reportedly spooked certain nations as they fear China will use its advanced marine technology to further its control in the territorial disputes in the South China Sea which have been dragging on for years.

The world’s “beautiful game” too has caught China’s fancy. It wants to be a football superpower by 2050 and has unveiled a blueprint on how to achieve it: build at least 20,000 football training centres and 70,000 pitches by 2020, according to the BBC.

Clearly, this is a nation with great ambitions and many achievements that it can be justifiably proud of, so why such extreme modesty and humility in dealing with the world?

Back in 2014, various experts and observers gave their take on it. The general consensus was that one of the biggest reasons was China’s fear of responsibility as in the classic line, “with great power comes great responsibility”.

Fortune.com opined that while the Chinese government would love to brag about its growing global influence, it is also pragmatic. It doesn’t want the “cumbersome international obligations” like being the world’s policeman and donor that are expected of a superpower or economic giant.

It would also seem that Chinese leaders believe taking the “softly, softly does it” line of diplomacy is most reassuring to the rest of the world and will create the least line of resistance to their overtures.

But it appears that this overly modest and diffident approach hasn’t quite worked as planned. Beijing may want to rethink its strategy because, to quote Shake­speare, it’s a case of “the lady doth protest too much, me thinks”.

By June H.L. Wong Sunday Star Focus

Related posts:

World first Quantum communication satellite to be launched in China ...

May 30, 2016 ... China plans to launch the world's first quantum satellite that can achieve ... first ' quantum communication' satellite in fight against hackers ...

 Enter the Chinese Century: China is now the world's No.1 ...

Feb 7, 2015 ... The world was now dominated by a single superpower, one that ..... "Super China " Boom in South Korea · Malaysia tops Job Asia Index, job.

 

 "Super China" Boom in South Korea

Feb 24, 2015 ... The seven-episode documentary, Super China, won hearts and ratings over 10 percent in South Korea and is praised as the "encyclopedia" for...

 The global centre of gravity shifting to Asia

Apr 11, 2015 ... The global centre of gravity shifting to Asia ... One is that it has shown in a dramatic way the global reach of Chinese economic strength,...

The center of world economic gravity moving east as ... Jun 30, 2015 ... China benefited from the global and regional development and financial ... The apparent shift of economic gravity from the West to the East...  Asian voice carries greater weight now

Jul 4, 2015 ... CHINA'S setting up of the AIIB (Asian Infrastructure Investment Bank) is a ... It represents another shift eastwards in the global balance of power, particularly .... The center of world economic gravity moving east as AIIB shows.

China's Long March-7 Rocket shipped to South China's ... May 9, 2016 ... The Long March-7 rocket departed for its launch base in Hainan on ... A container carrying China's new-generation Long March-7 rocket is ...     China space station will be completed by 2020, the super "eye" Mar 1, 2016 ... China space station will be completed by 2020, the super "eye" to speed up space rendezvous ... The "eye" is China's newly developed third-generation rendezvous and docking CCD optical imaging sensor. It will be used on China's ... China's Space Age Grows Up As U.S. Space Race ...