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China’s search for technological mastery will succeed because it is essentially replicating the actual history of the economics and policies that led the United States to technological dominance, rather than the ideological history of what many Americans believe lies behind their success
For years, American policymakers and pundits have believed China’s search for technological mastery or supremacy is doomed to fail or at least be consigned forever to mediocrity and also-ran status. This belief lies behind the strategy, first put forward by the Donald Trump administration, and now followed by Joe Biden’s White House, to restrict or ban the transfer of crucial technologies, notably the most advanced semiconductors and their production methods.
And yet, paradoxically, China is bound to succeed, despite the inevitable hiccups and setbacks, because it is essentially replicating the actual history of the economics and policies that led the United States to technological dominance, rather than the ideological history of what many Americans believe lies behind their success.
They have applied their own ideological models to predict China’s supposedly “inevitable” failure, instead of using their own actual history of American technology and science, and economic policy, to analyse China’s development and acquisition of key technologies in the 21st century.
This is perhaps not surprising. Rich, powerful and successful people usually tell a different story about how they get to where they are to what actually happened to them. It’s human nature.
China’s Great Firewall
It’s generally believed that free enterprise is the necessary and sufficient condition for hi-tech industries. This means: the free flow of information and talent; open market; no or minimal government intervention, also called deregulation; and intellectual property rights protection. It’s believed only the market can choose winners and eliminate the losers, and that any state attempt to choose “national champions” is bound to fail and to be wasteful.
China’s so-called Great Firewall of the internet stands as both an actual barrier and a potent symbol that is antithetical to all those fundamental neoliberal assumptions, which, granted, are being increasingly challenged and even undermined, even among some US professional economists and historians. However, if you believe in all those assumptions, you of course will logically argue that China is bound to fail. But is it?
Let’s consider the historical reference: the Great Wall of China. It has been alternately argued that it was built to resist foreign invaders, and/or to keep in the domestic population. Either way, it was too porous to be truly effective.
A piece of Web3 tech helps banned books through the Great Firewall’s cracks
16 Apr 2022
The same argument has often been made about the ineffectiveness and absurdity of the Great Firewall. Many Chinese households can just get a VPN and then can pretty much access whatever they want from outside China. Yet, as it turns out, porousness or partial online filter and censorship, has been a godsend for Beijing’s industrial policy for hi-tech development. This is no doubt an unintended consequence, but once it has been realised, its value is deeply appreciated by the authorities. Incidentally, that’s why officials tolerate the widespread use of VPNs, despite occasional and ineffective crackdowns.
In China, for people who have the know-how, education or mere curiosity, they can easily bypass the Great Firewall for information to start a business, launch a research project or steal a foreign design. These are the people you need to be in hi-tech industries. Yet, for the vast majority of Chinese, access to contents outside China is still restricted.
China also restricts foreign business and informational access. It has banned such companies as Google, Facebook and Twitter. But of course, it welcomes companies such as Apple, Starbucks and Wall Street banks.
The Great Firewall serves as the online market barrier to foreign entry, or the internet moat to protect infant industries from foreign competition or business invasion; again, one of two functions of the ancient Great Wall.
Intellectual property theft
No one would argue intellectual property theft or industrial espionage is essential to the economic development of a country. However, many economic historians have pointed out that whether it was the rise of Elizabethan England, 19th century America, modern Japan and South Korea, or contemporary China, intellectual property theft and/or industrial espionage played a key role in their economic rise; and state industrial policy as well.
But a successful country doesn’t steal forever. Once it reaches a certain critical stage of hi-tech development, when it has amassed the talent, resources and facilities, it starts to innovate. Then, it starts developing and protecting its own intellectual property regime to prevent others from stealing -and of course, to complain about theft.
That’s the stage China is entering. According to the China National Intellectual Property Administration last month, 696,000 invention patents were authorised in 2021, an average of 7.5 of high-value patents per 10,000, or nearly double the ratio for 2017. Whether those patents were really as useful or original as they claimed is not the issue here, but rather that they show Chinese authorities are committed to intellectual property protection and building up a viable patent regime.
But, besides the obvious racism about the lack of Asian originality, the neoliberal set of assumptions that I referred to above tend to reinforce the idea that China’s political and economic systems can’t innovate and so must go on stealing. That is also related to what American historian Richard Hofstadter has called “the paranoid style” in US politics. Its most infamous manifestation was the anti-communist McCarthyism. Its most recent example is the FBI’s China Initiative, which targeted ethnic Chinese researchers, especially those in US universities.
China’s chip output shrinks as Covid-19 lockdowns paralyse industries
16 May 2022
The Silicon Valley folklore is that of a lone maverick who has a great idea and pushes it to fruition, and in the process, creates a multibillion-dollar industry. That cannot be further from the assumption behind Japanese-Korean-Chinese state industrial policy, according to which innovation is a collective enterprise, not one of individual genius or charisma. It’s all about the sustained commitment of public resources and collective talent between the state and the private sector.
It’s a common criticism that such a policy is wasteful; it often backs the wrong technologies and industries. That’s true. However, the Silicon Valley model is also prone to periodic market euphoria, mania, panic and crashes, from the dotcom implosion to the current ongoing crypto-crashes. I will leave it to economic historians and econometricians to determine whether the state or non-state model is more wasteful or destructive.
Conclusions
Belatedly, the Biden administration is slowly realising that whether it’s containment against China or competition with it, the horse has bolted out of the barn already. That is why despite its hostile rhetoric, it has no coherent policy on how to deter or delay China’s technological drive for mastery or supremacy. This conflict cuts to the very ideological self-beliefs of the two countries. Only time will tell how it will turn out.
However, restricting or banning technological transfer will not work. The great British historian Arnold Toynbee famously wrote that it was usually countries or civilisations confronted with great or even mortal challenges that prevailed and prospered in history, not those that were well-endowed with rich resources. Denying China access to vital technologies at this late stage will simply force it to develop its own domestic capabilities. That won’t make it weaker, only stronger and more self-reliant.
For years, American policymakers and pundits have believed China’s search for technological mastery or supremacy is doomed to fail or at least be consigned forever to mediocrity and also-ran status. This belief lies behind the strategy, first put forward by the Donald Trump administration, and now followed by Joe Biden’s White House, to restrict or ban the transfer of crucial technologies, notably the most advanced semiconductors and their production methods.
And yet, paradoxically, China is bound to succeed, despite the inevitable hiccups and setbacks, because it is essentially replicating the actual history of the economics and policies that led the United States to technological dominance, rather than the ideological history of what many Americans believe lies behind their success.
They have applied their own ideological models to predict China’s supposedly “inevitable” failure, instead of using their own actual history of American technology and science, and economic policy, to analyse China’s development and acquisition of key technologies in the 21st century.
Alex
Lo has been a Post columnist since 2012, covering major issues affecting Hong Kong and the rest of China. A journalist for 25 years, he has worked for various publications in Hong Kong and Toronto as a news reporter and editor. He has also lectured in journalism at the University of Hong Kong.
The Art of War is the most influential treatise on war ever written, consisting of 13 chapters each of which is devoted to one aspect of warfare, it has shaped the way in which conflicts have been fought for thousands of years from the Japanese samurai to the Napoleonic war. Not only has the book influenced military commanders and generals all over the world, it has had resounding effects on politics, sports and business to this day.
In this video, we give key examples of Sun Tzu's most influential philosophies and strategies. These range from the Vietnam War to the coasts of Normandy in 1944.
The Art of War by Sun Tzu: Entire Unabridged Audiobook (Powerful Narration)
The Art of War is an ancient guide on military strategy. Written by Sun Tzu a Chinese general and philosopher in the 5th Century B.C. It was created after he helped successfully defend the Chinese province of Wu against the province Chu.
The strategies in this book have been used for hundreds of years in military campaigns, business and sports. It is the ultimate guide on how to defeat an opposing force in whatever form that might take. Contrary to what we might expect, The Art of War actually advises to avoid fighting as much as possible by only striking targets that are weak and using manipulation to subdue the enemy.
Ultimately Sun Tzu teaches us how to have the advantage in conflict giving us the best possible chance of success. My hope for this production was to provide an exciting and digestible rendition of this ancient text that can help people learn these strategies for years to come.
Putin maybe using Sun Tzu and The Art of War strategy
Since the American engineered coup in 2014 that brought Zelensky to power, the American and NATO have been quietly setting up the command centre for NATO operation against the Russians under the Azovstal steel plant. 3 major goals were achieved in the last 8 years, a command centre, a major biochem weapon station and a regiment of neo Nazi soldiers. All these were done stealthily, top secret military stuff. And they executed these so successfully under the nose of the Russians...without the Russians knowing?
With so many top generals and scientists shuffling in and out of the secretive underground fortress, with so many soldiers, and with so many logistics, biochemical weapons in the facility, it was a very well kept secret!
Putin was not appointed to head the KGB as a political appointee. He earned his spurs as an intelligent secret service officers. To be appointed as head of KGB, unlike the head of CIA, the latter a political appointment, meaning any idiot or clown could also be offered the job, it meant that Putin was the best of the best in KGB/Russia. Can't imagine how sleepy Joe is going to test his wits against the best of the KGB.
Putin and the Russians did not know of the death machine under the Azovstal steel plant? His original plan was to take Kiev? All his tanks and heavy military vehicles were lined up on the roads to Kiev, clearly visible by satellite images. No need guessing. The Americans and Ukrainians knew exactly what Putin was going to do. He is going to attack Kiev. The people in the Azovtal stronghold too thought they were very safe, very secure, unknown and undetected by the Russians. And their daily activities continued unchanged.
Everything was normal in Mariupol. In fact, the Americans and NATO must have felt very safe and no one left the fortress. If only they knew what Putin was up to. If only they knew that they have been exposed, all the big fish would have fled. Was it American and NATO arrogance, or was it Putin's brilliance, the attack on Kiev was expected but fizzled out quickly. By then, the Russian troops have all encircled the Azovstal fortress. Too late to run. No one is going to escape the dragnet of Putin.
Did any of the very clever American analysts and intelligence officers saw this coming? How could they missed the signs, the decoy, the diversionary strategy of Putin, look West and strike East? Putin's deception was as perfect as you can get from the point of military strategy. Of course the arrogance and stupidity of the Americans and NATO helped, making it so easy for Putin to round them up in one move. Now, as the Chinese strategists like to call it, Putin is hauling in the net, with all the big fish and crocodiles inside.
Putin is as good a military genius as he is expected. And he did not fail his believers with this war of deception in Ukraine. Now the Americans is pulling every string they could find to get in touch with Putin to release the big fish and crocodiles in the Azovstal fortress. The UN Sec Gen Antonio Guterres, and the Pope Francis had to make personal trips to Moscow to see Putin.
After all the hard work plotting to capture the Azovstal fortress, including the big fish and crocodiles and all the biochemical weapons inside, it would not be so easy to appease and persuade Putin to give up his prized catches so easily. Now the Americans and NATO are at the mercy of Putin.
Do not be surprised if the desperate Americans and NATO would do a last ditch assault in Mariupol to free their valued generals and scientists. When Lt Trevor Cadieu is only in charge of a biochem weapon unit, one can easily imagine how many more generals would out rank him in the fortress. Then there would be the commanding officer of this top secret facility and his deputies. The Brits French, Germans and many other NATO top brass are likely to be in the same hole under the steel plant.
These are early Christmas presents for Putin, though they came with a lot of planning and effort. For the slightest indication that the fortress' existence had been exposed, or Putin's game plan was to capture the fortress and all the top brass and biochemical weapons in them, all the top brass would have scooted long before the war started, and all the biochemical weapons would have be transferred elsewhere. Now they would be top exhibits in Putin's case against the Americans and NATO, to be shown to the whole wide world.
Never had the Americans and NATO been in such a dire strait, with their balls being squeezed by Putin and they could not do anything about it short of an outright military confrontation, an assault on the Azovstal steel plant with the full force of American and NATO forces.
No amount of propaganda can distract the success of Putin in his set up to capture the Azovstal fortress lock, stock and barrel. These would now become very expensive chips in the pocket of Putin, and the Americans and NATO would have to pay a very heavy price for their return.
How many generals or military strategists today could claim such a success against the American Empire and NATO? And to think of it, the Americans and NATO still did not have any clue what was Putin up to. Still guessing and spreading nonsense about the intent of Putin, and still claiming fake victories against Putin everyday.
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Malaysian pride: Tan, who is from Muar, was appointed to the most senior technology position at Nasa recently. – nasa.gov
NASA Engineer Florence Tan presented a Maniac Lecture entitled, "From Malaysia to Mars." Florence talked about her journey from Malaysia to NASA Goddard Space Flight Center, where she has been working on planetary mass spectrometers, which is characterized by challenges, frustration, excitement, and rewards.
Only with the application of inclusiveness will retain our best workforce.
EVERY time we read about Malaysians making a mark globally in their respective fields, pride and joy course through our veins knowing these people have elevated our country’s standing.
Recently, that proverbial uplifting news featured six young Malaysians acquiring seats in the prestigious Harvard University for the class of 2026.
The students received offers of admission amidst stiff competition from a global applicant pool of 61,220 students, it was reported.
Last week, another piece of good news surfaced. A Malaysian from Muar, Johor, Florence Tan, was appointed Deputy Chief Technologist at the National Aeronautics and Space Administration (Nasa) – the most senior technology position.
She had left Malaysia at 18 to study in the United States, and then started to work with Nasa, beginning as an intern at one of its research centres.
When I read those two stories, I couldn’t help pondering if the six Harvard students would return to Malaysia someday, perhaps after gaining experience in the US and other countries.
And what can Tan really do in Malaysia, even if she chose to return home? After all, we can’t cater to her expertise, experience and skill in
Your chance to fly Singapore Airlines to London for free with this new card from Maybank
But more and more, when we read of these high achievers, the media is compelled to refer to them as “Malaysia-born,” which is a euphemism for Malaysians who have emigrated overseas and are not nationals of our country any longer.
At least we’re sure that two legendary Malaysians of global repute, Hollywood actress Tan Sri Michelle Yeoh and shoe designer Datuk Jimmy Choo are hanging on to their Malaysian passports.
Unfortunately, Malaysia is one of the countries most affected by brain drain, as it faces a major problem in not only being incapable of delivering the required talent, but also in failing to retain the current local talent or attracting foreign ones, as a report in cs.stanford.edu put it.
The World Bank defines brain drain as the migration of talent across borders, which has an impact on Malaysia’s aspiration to become a high-income nation.
“Human capital is the bedrock of the high-income economy. Sustained and skill-intensive growth will require talent going forward.
“For Malaysia to be successful in its journey to high income, it will need to develop, attract, and retain talent. Brain drain does not appear to square with this objective: Malaysia needs talent, but talent seems to be leaving.
“Brain drain is a subject of intense debate and controversy, but surprisingly few studies have characterised the phenomenon in the Malaysian context – be it in terms of magnitude, impact, or policy response.
“What complicates matters further are the statistical discrepancies that limit the quality, availability, timeliness, and comparability of international migration data,” wrote its senior economic advisor Philip Schellekens.
He quoted the World Bank’s Malaysia Economic Monitor saying that the Malaysian diaspora – the group of skilled and unskilled Malaysia-born women, men and children living overseas – is estimated conservatively at one million worldwide as of 2010.
“A third among these represent brain drain – those with tertiary education among the diasporas. This is not to suggest that others are not ‘brainy’, but educational attainment is the only available proxy that is consistently available across recipient countries.
“To put the numbers in perspective, two factors are important: the size of the skills base and the profile of immigration.
“Because of the narrow skills base, brain drain is intense in Malaysia and is further aggravated by positive selection effects, as the best and brightest leave first.
“Further, brain drain is not alleviated by compensating inflows, since migration into Malaysia is mainly low-skilled with some 60% with primary education or less and the number of high-skilled expats has fallen by a quarter since 2004.”
As of 2019, there are 952,261 Malaysians or Singaporeans of partial or full Malaysian origin residing in Singapore. And including the permanent population in the country, about 350,000 Malaysians cross the Johor-Singapore Causeway daily to commute to work or school.
Australia is another popular choice for Malaysians, with 177,460 people living there in 2020, according to a report, while the 2016 census from the Australian Bureau of Statistics reveals that 138,364 Malaysians became permanent residents or citizens.
There’s nothing wrong with us continuing to look for low-skilled labour for our oil palm estates, restaurants and homes – many West Asian countries are in the same predicament. However, Malaysia needs to embrace the global mobility of talent, too.
For a start, we must admit that the biggest criteria are the differences in earnings, career prospects, opportunities, professional exposure and quality of life.
The elephant in the room for many Malaysians is the discontent with our country’s affirmative policies, particularly among the non-bumiputras who see their chances of climbing up the ladder hampered by their ethnic origin.
The painful truth is, many talented non-bumiputras, especially the Chinese, make up the bulk of the diaspora.
In all fairness, the government, via Talent Corporation Malaysia, has developed many initiatives to encourage Malaysians to return, but a better carrot needs to be dangled.
Singapore, one of the best-run countries, has the same problem as it faces a challenge to retain quality citizens because the country’s brain drain rate is higher than the global average with six in 10 Singa-poreans willing to leave the country in pursuit of a better job, according to a Randstad Workmonitor research report.
The study revealed that the brain drain rate in the Lion City is higher than the global average of 50%. It’s also higher than Hong Kong’s 56%, but slightly lower than Malaysia’s 66%.
It said 68% of Singaporean workers, aged between 18 and 34 years old, are willing to pack up and leave their country.
In many ways, ethnic Chinese, like their forefathers, are a migratory race, regardless of their nationalities, with many selecting Canada and Australia as their choices during the last 20 years, according to statista.com
In 2013, the United States and Canada became the countries with the highest immigration rate of millionaires from China, according to Hurun Research Institute.
China is reportedly one of the world’s largest emigration countries as well as the country with the biggest outflow of high net worth individuals between 2003 and 2013. Likewise for many Hong Kongers and Taiwanese.
Our politicians love to use the term “world class” when they talk about Malaysia, but we need to really walk the talk or else it remains hollow and unconvincing. If we’re indeed top of the heap, we should be getting top notch workers queueing up to work here.
Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 35 years in various capacities
and roles. He is now group editorial and corporate affairs adviser to the group, after having served as group managing director/chief
executive officer.On The Beat made its debut on Feb 23 1997 and Chun Wai has penned the column weekly without a break, except for the occasional press holiday when the paper was not published. In May 2011, a compilation of selected articles of On The Beat was published as a book and launched in conjunction with his 50th birthday. Chun Wai also comments on current issues in The Star.
One thing is clear, whilst the quantity of educated manpower is critical to national strength, quality may matter more.
Parents quarrel about the quality of education for their kids, just as societies are deeply divided on education as it defines the future.
Is the current education system fit for purpose to cope with a more complex, fractious future, fraught with possible war?
According to Stanford University’s Guide to Reimagining Higher Education, 96% of university chief academic officers think that their students are ready for the workforce, where only 11% of business leaders feel the same.
As the population and work force grow, the gap between skills demanded by employers and the education received by school leavers is widening, so much so that many are finding it hard to get the jobs that they want.
As technology accelerates in speed and complexity, the quality of education becomes more important than ever. Is it for the elites or the masses?
The Greek philosopher Aristotle recognised that the aim of education is for knowledge, but there was always a different view as to have knowledge for the individual or whether education must prepare the individual to fulfil the needs of society.
Feudal systems hardly paid attention to the masses, whereas most ancient institutes of higher learning were for elites, either for religious orders or in Chinese history, to prepare for civil or military service, but blended with self-cultivation.
Conservative think tank American Enterprise Institute (AEI) has just produced a fascinating study on the implications of higher education for national security.
Covering the period 1950-2040, the study acknowledged that the United States attained uncontested power status, because it had the highest levels of educational attainment and manpower.
In 1950, the United States, with less than 5% of the world’s population, had 45% share of world population aged 25 to 64 with completed tertiary education.In comparison, India had 5% and China about half of that.By 2020, the United States’ share had dropped to roughly 16%, whereas China was catching up, whilst India had just under 10%.By 2040, depending on different estimates, China may double its share to between 15% and 20%, whereas India would have overtaken the United States with 12%, leaving the United States third with 10%.
It is a truism that education matters for economic growth and power.Every additional year of schooling for children is estimated to add 9% to 10% increase in per capita output.
If you add in “business climate” with improvements in education, health and urbanisation, these factors explain five-sixths of differences in output per capita across countries.
Under the liberal world order, America encouraged the spread of global education, so much so that the global adult illiteracy (those without any schooling) fell from 45% in 1950 to only 13% by 2020.
This worldwide expansion in education was good for the world, but it also reduced the comparative advantage of the education and technology front-runners, particularly the United States.
The AEI study reported that the share of global adult population with at least some tertiary education increased from under 2% in 1950 to 16% today and would approach 22% by 2040.
In 1950, eight of the top 10 largest national highly educated working age labour pool was in advanced countries. By 2020, their share was half.
By 2040, this is likely to be only three out of 10.
In essence, India and China would take the lead in total highly trained manpower, especially in science and technology, with the United States “an increasingly distant third place contestant.”
The AEI study illustrates why increasingly American universities will be more selective in their future foreign student intake, especially in science and technology which may have impact on national security matters.
As late as 2017, MIT manifested global ambitions in its strategic plan, “Learning about the world, helping to solve the world’s greatest problems, and working with international collaborators who share our curiosity and commitment to rigorous scientific inquiry.”
That global vision may be cut back in light of the growing geopolitical split into military blocs. Western universities may no longer be encouraged to train foreign students into areas where they can return to compete in key technologies.
In short, geopolitical rivalry will determine the future of resources allocated to education, research and development and technology.
No country can afford liberal education in which every student is encouraged to do what he or she wants to do.
Students today want to be more engaged in the big social issues, such as climate change and social inequality.
But at the same time, they expect more experiential immersion into careers that are more self-fulfilling.
Instead, institutes of higher learning are forced by economics to provide more shorter term courses to upgrade worker skills, using new teaching methods and tools, especially artificial intelligence, virtual reality etc.
At the national level, governments will push universities into more research and development and innovation to gain national competitiveness, including R&D on defence and national security sectors.This means that the education pipeline or supply chain will also be bifurcated like global supply chains that are being disrupted and split by geopolitics.
The conversation on what should go into the curriculum for education is only just beginning. Much of this is to do with funding.
As higher levels of education are more expensive, especially in the high technology area, whilst governments budgets are constrained, universities will turn to private sources of funding.
The more society polarises, the more likely that such funding would turn towards entrenchment of vested interests, rather than solutions to structural problems.
Education is controversial precisely because it is either a unifying social force or a divisive one.
One thing is clear, whilst the quantity of educated manpower is critical to national strength, quality may matter more.
The Soviet Union had the second largest share of educated manpower during the Cold War, but it did not save it from collapse.
Will our future education system provide leaders who are able to cope with the complexities of tomorrow?
As the poet T S Eliot asked in his poem “The Rock” in 1934, “where is the wisdom we have lost in knowledge?”
That question is being asked not just in universities, but by society as a whole.
Andrew Sheng writes on global issues from an Asian perspective. The views expressed here are the writer’s own.
Home buyers should verify the authenticity of the real estate practitioners they are dealing with
By Yanika Liew
If you are new to the property scene, dipping your toes in can feel like taking a dive. It can be intimidating to wade through stories of digital impersonations, stolen deposits and backdoor deals. The digitalisation of commerce has skyrocketed as a result of the pandemic. Enterprising companies are launching platforms for their services in a changing market and property is no different. With more real estate businesses moving online, it is easier than ever for fraudulent transactions to take place.
Take the recent cases in Singapore where scams involved convincing victims to pay a home-viewing deposit to secure an appointment. Armed with unregistered identity cards, scammers impersonated property agents by sending a picture of their credentials to the victims. There are multiple instances of scammers uploading fraudulent listings on websites. By the time their victims realise they have been duped, it is already too late.
“Scammers use technology and social media to reach out to prospects more easily. It is very disturbing and there is very little anyone can do to help buyers and sellers who have been cheated by unregistered estate agents or unregistered real estate negotiators,” Malaysian Institute of Estate Agents (MIEA) president Chan Ai Cheng said.
Real estate transactions are a gold mine for scammers, as the process involves large amounts of money being transferred to another account. Scammers can create fake online websites to get customers to bank in the money to them, Propnex Realty chief operating officer Evon Heng commented, who is also MIEA secretary-general.
According to both Chan and Heng, many transactions involve collecting a deposit in a sale or rental, and this money is kept by the individuals. It is a very common case for scammers to abort the deal without returning the refund, causing the buyer to lose out on the deposit. Whereas a registered agent is required to transfer any and all deposits to an account managed by the firm, under the client's name. This ensures that the buyer is protected by the law should anything happen, significantly reducing the risk of exploitation.
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“Scammers use technology and social media to reach out to prospects more easily,” Chan said.
Another common scam involving property is the sale of a project that is non-existent, such as the scam promising victims affordable housing. Scammers claim they have access to units from a high-demand affordable housing scheme, without complying with the eligibility criteria.
While there are instances of affluent victims being caught up in these scams, Chan reports that a majority of property scam victims are in the B40 category, the second being the M40. These groups are less aware or experienced in real estate matters. Similarly, those located away from the city, in small, rural towns are disproportionately targeted. These areas are especially vulnerable due to fewer safety nets available. With B40 families having fewer resources than other income groups, they have more to lose and fewer pathways to receive support, whether from authorities or their community.
So who do you have to watch out for? Chan outlined a framework the public can use when identifying these scams.
“The case of scams defined as defraud or embezzlement in an estate agency transactions is predominantly by illegal brokers as they are not regulated by law and also because they need not operate via a firm,” Chan said.
Real estate practitioners are required to follow strict guidelines when advertising, which include the practitioner’s real estate negotiator (REN) or real estate agent (REA) number and the registration number of the firm they represent. This is crucial information that the public can use to verify with the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEA). Those who are unable to present proper paperwork should be questioned. Chan also warned the public against real estate practitioners who pressure their clients into financial commitments, more so when they seem to be withholding information.
What can you do?
When you realise you have fallen for a scam, the first instinct is to panic. MIEA reported that one of the barriers to victims coming forward was the embarrassment they faced when they admitted to falling for a scam. Particularly in regards to transactions that do not involve a large sum of money, victims seldom choose to confront the situation.
Regardless of such inhibitions, Chan recommends victims lodge a report to the police. If the scam involves a housing development, victims should lodge a report with the Ministry of Housing and Local Government (KPKT). These reports will be able to provide authorities with data, assisting not just yourself, but future victims. In order to warn the rest of the public of such instances, she added that victims could contact the press for further outreach.
“Research and verification are vital for any transaction or purchase,” Heng said.
Homebuyers are encouraged to work only with registered RENs or REAs, whose authenticity can also be verified via a written authorisation from the owners of the property being sold. In the case of homeowners eager to rent or sell their property, reach out to professionals rather than appoint an unregistered broker, even if it is someone you trust. Especially when making deposits, ask yourself these questions; could it be an individual’s bank account you are sending your money to? If it is a company, is it a registered one?
“By no means it’s all safe and well, dealing with registered persons but at least they are known, the regulatory bodies are able to take more immediate action or even deregister them, there is accountability when one is registered,” Chan said.
As more and more Malaysians become comfortable handling transactions online, their vigilance begins to diminish.
“Not only are property scams more prominent, but other scams are also. Research and verification are vital for any transaction or purchase,” Heng said.
She noted that the digitalisation of real estate created other challenges for homebuyers and estate practitioners. Many people enjoy visiting the unit itself or its sales gallery when looking for property. These are preferences that will be easier to accommodate with the easing of Covid-19 pandemic restrictions, but the trend of digitalisation is not likely to falter in the coming years.
As the property industry continues to evolve, there will be new challenges for all stakeholders involved. Learn more about protecting yourself in real estate transactions by visiting MIEA’s public awareness campaign, via www.instagram.com/myrealagents/
Expert: U.S. is damaging itself for putting tariffs on China
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Removing additional tariffs on Chinese goods will significantly ease the pressure on companies in both China and the United States, and help the world to curb inflation, experts said on Wednesday (May 4).
Their remarks followed the Office of the United States Trade Representative, or USTR, announcement on Tuesday of the commencement of the statutory four-year review of the continuation of the US "Section 301" tariffs on Chinese products.
In the four-year review, the USTR will examine the tariff actions on Chinese-origin products from July 6, 2018 to Aug 23, 2018.
Based on this review, the US government can determine whether to maintain the tariffs, change the tariff rates, or remove the tariffs.
In the first quarter of this year, China-US trade grew 12 percent year-on-year to $185.92 billion, data from China's General Administration of Customs showed.
According to Tu Xinquan, dean of the China Institute for WTO Studies at the University of International Business and Economics in Beijing, the additional US tariffs on Chinese products have put heavy burdens on US companies and aggravated inflation levels in the country.
In the US, many businesses involved in trade have been seeking rollback of the additional tariffs on Chinese products.
Besides, many of the tariffs were levied through administrative orders rather than being based on relevant laws. This led to a series of complaints and lawsuits that challenged the authority of those orders issued by the former administration, he said.
In the two-step review process, the first step is for the USTR to offer an opportunity for US domestic industries that benefited from the tariffs to request their continuation. Legally, the tariffs are to terminate four years after their application, if no US party submits a request that they be continued.
If there are requests to continue, the tariffs are received, under the statute the following step requires the USTR to undertake a review of the effectiveness of the "Section 301" tariffs on achieving their objectives and their impact on the US economy and consumers.
Cancelling the additional tariffs on Chinese products will also help many parts of the world to curb inflation, because stable product and commodity supplies from China and the US – the world's two largest economies – will facilitate the world to build strong industrial and supply chains, said Zhang Yongjun, deputy chief economist with the China Center for International Economic Exchanges.
As the US dollar is a global currency, the increase in its supply, which far outpaced that of other global currencies like the euro, directly pushed up prices in the US, besides fueling inflation worldwide, which has been exacerbated by the Russia-Ukraine conflict, he noted.
Amid global inflation and growing pressures on the global supply chain, tariffs have become an inconvenient factor that inhibits enterprises from conducting international trade cooperation, said Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation in Beijing.
China and the US, he said, should not only remove additional tariffs imposed during their trade disputes, but even further reduce tariffs to make them even lower than the pre-dispute levels. That will significantly boost expectations on normal global supply chain operations, bolster market confidence and facilitate global economic recovery.
"As the world's two largest economies, healthy bilateral relations between China and the US are important not only to them but the world, as the global economy has been facing a number of uncertainties in recent years," he said.
Woody Guo, president for China unit at Herbalife Nutrition, a US-based manufacturer of nutrition products, said it is beneficial for China and the US to enhance their ties in the area of trade and economic cooperation.
"In China, consumption upgrade and domestic demand expansion will help the country to grow its consumer base under the dual-circulation development paradigm, providing huge growth potential for foreign enterprises, including Herbalife Nutrition," Guo said.
Easing restrictions: The US and Chinese flags outside a hotel in Beijing. American tariffs on hundreds of billions of dollars of Chinese imports are due to expire in July, but could be extended if enough industries ask for an extension. — AFP
WASHINGTON: The United States government should eliminate or at least reduce additional tariffs on Chinese imports imposed during the Trump administration, a US trade expert says, arguing that such trade liberalisation measures will help lower elevated inflation and stabilise inflation expectations.
“Here, we’re running a red hot economy. So anything you can do to reduce that cycle is good news,” Gary Hufbauer, non-resident senior fellow at the Peterson Institute for International Economics (PIIE), told Xinhua in a recent phone interview.
In a research published on PIIE’s website, Hufbauer and his colleagues Megan Hogan and Yilin Wang argued that “a feasible trade liberalisation package” could deliver a one-time reduction in consumer price index (CPI) inflation of around 1.3 percentage points. That would save US$797 (RM3,467) for every US household.
He said the direct effect of eliminating additional tariffs on Chinese products would be a 0.3 percentage point reduction in the CPI, but there would also be indirect effect, which will add “substantially” to the 0.3 percentage point.
“It would be a pretty big signal to US firms that they are going to face more competition and that might cause them to moderate their price increases as inflation rolls forward,” said the long time trade expert.
“We’re in a world now where inflation expectations are really quite high,” Hufbauer said, noting that US Federal Reserve’s (Fed) interest rate hikes would have some effect on inflation expectations, and trade liberalisation measures “would have an additional effect.”
Stabilising inflation expectations is important, he said, because when expectations are that inflation is going to continue, “that then feeds into wage demands and that then keeps the cycle going.”
According to the latest data from the US Labour Department, the CPI in March surged 8.5% from a year earlier, the largest 12-month increase since the period ending December 1981. That followed a 7.9% year-on-year gain in February.
US personal consumption expenditures price indexes, the Fed’s preferred inflation measure, soared by 6.6% in March over the past year, the Commerce Department reported on Friday.
In reaction to the argument that reducing the China tariffs would not lead to a meaningful reduction in prices, Hufbauer said it doesn’t completely eliminate the inflation problem, “but it’s better than doing nothing.”
“So there’s raising interest rates, there’s cutting back federal spending, there’s reducing tariffs, all of those things have some impact,” he said. “I would say it’s something where every little bit counts.”
Regarding the current political environment, Hufbauer said he thinks it will be difficult for the administration to reduce or eliminate additional tariffs on Chinese imports before the mid-term elections, but he hopes that it will do that.
The trade expert said he is “very encouraged” by a recent statement by Deputy National Security Adviser Daleep Singh, who said the Biden administration could lower tariffs on non-strategic Chinese goods such as bicycles or apparel to help curb inflation.Hufbauer noted that the Biden administration could be reluctant to remove the Trump-era tariffs, because it would have to face criticism for being “soft” on China.