The China dream

Tan Sri Lin See-Yan analyses the China Dream' and that President Xi Jinping needs to assure middle-class Chinese that the nation can remain rich and strong.
 
PRESIDENT Xi Jinping, general-secretary of the ruling Communist Party as well as chairman of the Military Commission, talked of the “China dream” to unite an increasingly diverse nation of 1.35 billion people. What's Xi's vision which incidentally sounds somewhat like the American dream?; even evokes Martin Luther King's “I have a dream,” reflecting some US-style aspiration.

Since the revolution, China's goals have centred on unity, strength and wealth. Mao Zedong tried to attain them through Marxism and failed: the cultural revolution ended with his death in 1976. Deng Xiaoping's catchphrase was more practical: “reform and opening-up.” Then, Jiang Zemin pushed the more arcane “Three represents” to embody the changed society, including allowing private businessmen to join the party. Lately, Hu Jintao championed the “scientific-development” outlook which was about being greener and dealt with disharmony created by the divisive wealth gap. His Prime Minister Wen Jiabao dwelt repeatedly with the need to rid the economy of the 4-UNs unstable, unbalanced, uncoordinated and ultimately unsustainable growth.

Now, Xi talks of his dream of “the great revival of the Chinese nation,” of a “strong army dream,” and of our mission “to meet the people's desire for a happy life.” He also alludes to ordinary citizens wanting “to own a home, send a child to university and just have fun.” The Chinese dream, he said “is an ideal. Communists should have a higher ideal, and that is Communism.” Frankly, even though short on detail, Xi's dream is different from his two predecessors' stodgy ideologies. I see practical politics at work here. With growth slowing, Xi's new vision appears to emphasise nationalism going beyond middle-class material comfort. Of course, there is the usual tough talk on the rule of law and on corruption (“fighting tigers and flies at the same time”); also on meeting the public's wish for “better education and more stable jobs.” His dream seems designed to inspire rather than inform. In the end, “The China dream is the people's dream,” so he says.

Promises and pledges

China's US$8.3 trillion economy went through its worst slowdown in 13 years in 2012 when weak exports and increases in interest rates dragged annual growth to 7.8%, the grimmest since 1999. The economy faces more headwinds as it struggles with surplus production capacity and underlying risks in the financial system. So it's not surprising the new administration has called for sweeping reforms and lessening state control. Areas requiring pressing change include freeing interest rates, promoting private investment, encouraging consumption and “greener” growth, and enforcing the rule of law. It has even declared “fair competition is our common goal,” vowing to end subsidising SOEs (state owned enterprises) and levelling the playing field for private enterprise.

The new leadership has since pledged to slash bureaucracy, commit to market-oriented reforms, boost social spending and services, and fight pollution. China is expected to rely on migration to the cities to boost domestic consumption and re-make the economy to be less dependent on massive outlays on fixed investment at home and exports abroad. Such “rebalancing” needs to give markets room to operate competitively. In finance, market forces will be given freer play in setting interest and exchange rates, to ensure savers get a better deal, and businesses have ready access to funding through more effective capital markets.

The Xi administration now puts China's fast growing consumer class at centre stage. Perhaps, the most far reaching change thus far is the urbanisation policy being pursued. This involves reforming the rigid urban hukou household registration system by giving residency permits to some 220 million migrants to the cities, and allowing farmers to sell land at market prices to protect their land rights and boost incomes. Empowering a whole new class of consumers underpins the national drive to reorganise the entire economy from government to banks to SOEs. Such radical overhaul is needed to seriously expand domestic demand. China's plan includes adding 9 million new jobs in urban areas to keep unemployment at or below 4.6% to ensure that real per capita income for both urban and rural residents continue to increase. Its inflation target this year remains at 3.5%, lower than 4% last year. China's actual inflation last year came-in well below that at 2.6%. But these achievements came at the cost of widening inequality and environmental degradation. China's Gini coefficient a measure of income differences was 0.474 last year, higher than the 0.4 level which signals a potential for social unrest.

Transformation

China's GDP (gross domestic product) rose 7.7% in the first quarter this year (down from 7.9% in the fourth quarter 2012), slower than the median analysts' forecast of 8%. Given continuing weak US conditions and a eurozone locked in recession, disappointing Chinese data cast a long shadow over the global outlook. Frankly, I am not as worried provided it reflects the transformation that's said to be already in train. Elements of this reform include shift from investment-export led growth to a new structure providing widespread support for domestic private consumption. This rebalancing will involve new initiatives emanating from services-led consumption, which in turn relies on more labour-intensive services. These require 35% more jobs per unit of GDP compared with manufacturing and construction (thus ensuring rising employment and poverty reduction), with a much smaller resource and carbon footprint.

Xi’s dream is different from his two predecessors.

As I understand it, this services-led pro-consumption reform remains a core initiative in the current 12th 5-year Plan. The agenda needs complementary support from implementing an enlarged and better designed social safety net; reform of SOEs; and ending financial depression of households by raising the artificially low interest rates on saving. But there are strong headwinds coming from several directions: deteriorating credit quality affecting the integrity of bank balance sheets; weakening export competitiveness reflecting continuing rising wages; pollution, corruption and inequality; and political economy missteps, including escalating disputes with Japan and others. China has come through two major crises in the past four years. Its economy remains robust and resilient but it still needs to modernise. Make no mistake, the risks are real. Only purposeful transformation can provide China with the needed strength and resolve to pull through future crises. Reality check: as the economy matures, its pace of growth will surely slacken.

Urbanisation

Urbanisation (movement of rural population into cities and towns) has become a focus of China's reform plans. Its urban population reached 690 million in 2011, against 170 million in 1978. The percentage of urban population rose to more than 51% in 2011 (17.9% in 1978) and will touch 60% by 2020. Consequently, rural population fell from 82.1% in 1978 to 48.7% in 2011. This movement highlights the strategy to rebalance the economy:

● It drives market demand; per capita consumption ratio of urban residents to rural is about 3.3:1;

● Pushes investment in infrastructure and social housing which in turn creates employment and new incomes, which further raises consumption. A 1-1.5 percentage point rise in urbanisation adds 15-20 million people to the city;

● Promotes industrial restructuring and upgrading thereby raising the quality and productivity of employment;

● Increases jobs in the service industry. According to the World Bank, emigrants send home US$45bil a year, with some sending as much as 80% of their income to support their families. This leads to rising rural spending on better homes, education, consumer durables and higher grade groceries. Contrary to common belief, migrants actually maintain their rural shopper habits as they work and sleep in urban environments. The entire process will help to restructure the economy. It is projected that 400 million people will become urban dwellers over the next decade. Under the 12th 5-year plan (ending 2015), 36 million social housing units will have to be built in addition to the 7.2 million units built in 2012. To meet the growing demand for urban jobs, China created 10.24 million new jobs in the first nine months of 2012 (exceeding the 9 million target set for the entire year).

But urbanisation comes at a cost. It is accompanied by chronic environmental degradation and worsening pollution, posing a serious threat to human health and social stability. Urban migration is drastically changing patterns of consumption and behaviour city residents use three times more electricity than rural dwellers; consume 10 times as much sugar, and require vastly more infrastructure and utilities to service their daily lives. Despite efforts to make cities greener, progress is slow because local officials are rewarded for high investment and fast growth, rather than for sustainability. Hence, repeated calls for urbanisation to be “balanced with ecological security.” Additionally, there is fear that the surge of migration would turn cities into Latin-American style slums. But urban reformers are pushing for “bigger-is-better” the idea that cities gain by having people more tightly packed forcing greater use of public transportation (hence, raising its effectiveness), forcing old-line high polluting industries to relocate (thus raising productivity and freeing valuable social space), forcing new energies into a city thus, helping to create new businesses and investment.

Surprisingly, many of China's biggest cities are much less densely populated than Singapore, Seoul, Manhattan and downtown Tokyo, all of which have made strong, successful transitions to the consumer-led service-industry model China wants. Beijing (20 million) has a density of less than 5,000 per sq km and Shanghai (18 million), less than 6,000 against 11,000 in Singapore, 18,500 in New York and 10,400 in Seoul. Rightly so, the Chinese leadership is worried about building super-size urban centres because they create slums, worsen pollution or spur pockets of political dissent.

What then, are we to do?

National unity requires China to be one big bed. But its people can, and do have different dreams indeed, as many as 1.35 billion. The challenge is to get them all to dream the same dream. Xi hopes this would be his “China dream.” China's rise in national strength is well known. It's already the world's second largest economy and the world's largest exporter. Over the past decade, the economy rose 9.3% on the average, raising per capital income to over US$6,000 by 2012. Historians remind us that in 1820, China's GDP was one-third of the world. Then humiliation of the century brought it down to a low so that by the 1960s China's share fell to just 4%. Now, it has recovered to about one-sixth in purchasing-power parity terms. Xi's dream needs to reassure the new middle-class that China can remain “rich and strong” in the hope of reigniting “the great revival of the Chinese nation.”

From the “people first” approach to the “Scientific Outlook” on development, and then to campaigning for a “harmonious society” and “inclusive growth”, the Hu-Wen administration shifted the single-minded pursuit of GDP growth towards more emphasis on balance, reorienting its strategies towards a stronger focus on social security (by 2012, 480 million were on pension and 1.3 billion covered by medical insurance); education (reforms at decentralisation and addressing the need for innovation and entrepreneurship); urban-rural divide (reform of subsidies and taxes, and free and compulsory education in rural areas); and social housing (leading to massive building). Despite much progress, these areas remain of deep enough concern to require bold and innovative action by China's new fifth generation leadership. As I see it, gradualism (instead of cold turkey) is still the tone of future reforms. I see this manifested by the new emphasis on introducing pilot programmes first to test their workability on the ground when carrying out major reforms.

As part of reform, it does appear now there won't be any large-scale stimulus to boost growth as the government pares the state's role and rely more on workings of the market mechanism and the initiative of private enterprise. Many analysts have since begun to lower China's 2013 growth to 7.6% for the year as a whole, as the road ahead gets bumpy. It's unlikely to grow at 8.2% in 2014 (International Monetary Fund forecast). For the Xi administration, speed isn't everything. Better balance holds the key to unlocking China's dream.

WHAT ARE WE TO DO
By TAN SRI LIN SEE-YAN

● Former banker, Dr Lin is a Harvard educated economist and a British Chartered Scientist who speaks, writes and consults on economic and financial issues. Feedback is most welcome; email: starbiz@thestar.com.my.

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Taiwan stages military drill as Philippines killing Chinese fishermen

Standard Type II missiles (front) are ready to launch and 5-inch canon (back) is ready to fire during a joint military drill on a Kidd-class destroyer outside a navy base in Kaohsiung port, southern Taiwan, on Thursday. Photo: Reuters

Taiwan on Thursday staged a military exercise in waters near the northern Philippines in response to the killing of a Taiwanese fisherman, after rejecting repeated apologies for the death.

Philippine coastguards shot dead the 65-year-old last week after they said his vessel illegally sailed into Philippine waters. Outrage in Taiwan at the incident has grown amid a perceived lack of remorse in Manila.



.
A flotilla of one destroyer, two frigates and four coastguard ships sailed to the waters near Batan island to press Taiwan’s territorial claims in the area, defence authorities said.

Taiwan’s Foreign Minister David Lin and the fisherman’s family refused to meet a personal representative sent by President Benigno Aquino in a bid to contain the diplomatic fallout. He was due to return to Manila later on Thursday.
“I came to convey the president’s and the Filipino people’s deep regret and apology over the unfortunate and unintended loss of life,” Amadeo R Perez told reporters at the airport.

Philippine special envoy Amadeo Perez (centre) and Philippine envoy in Taipei Antonio Basilio (right) meet the media during a visit to Taiwan's Foreign Affairs Ministry in Taipei on Wednesday. Photo: AFP 
Perez is chairman of the Manila Economic and Cultural Office which handles relations with Taiwan in the absence of diplomatic ties. The Philippines, like most countries, formally recognises China over Taiwan.

Taiwan has deemed it “unacceptable” that the death has been described as unintended by the Philippines.

Tensions mounted after Taiwan on Wednesday slapped sanctions on the Philippines, including a ban on the hiring of new workers, a “red” travel alert urging Taiwanese not to visit the Philippines and the suspension of exchanges between high-level officials, trade and academic affairs.

Taiwan’s President Ma Ying-jeou reiterated on Thursday that the Philippines should take the responsibility over the fisherman’s death.

“I do hope they (the Philippines) will understand they have to be responsible in the international community. Shooting unarmed and innocent people in the open seas is not an act tolerated by civilised nations,” Ma said.

Taipei has repeatedly pressed Manila to issue a formal apology by its government, to compensate the fisherman’s family and to apprehend the killer.

It also rejected an initial apology on Wednesday by the Philippines’ de-facto ambassador.

Maritime tensions are already high over rival claims in the South China Sea, adjacent to where last Thursday’s shooting took place.

China, the Philippines, Taiwan, Vietnam, Malaysia and Brunei all have competing claims to parts of the strategic and resource-rich maritime region.

“This (exercise) highlights Taiwan’s navigation and fishing rights,” said Vice Admiral Hsu Pei-shan, the Navy Chief of Staff, Central News Agency reported.

- Agence France-Presse in Taipei

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The Philippines recklessness killing Chinese Taiwan fishermen

The killing of 65-year old Taiwanese fisherman Hung Shih-cheng is not the first incident involving Philippine Coast Guard shooting at Taiwanese fishermen. In 2006, another fishing boat was attacked, which led to the death of 67-year-old captain Chen An-lao. 




The Philippines initially denied the shooting, then admitted its coast guard did fire at the fishing boat. Recently, it agreed to make an apology.

Abigail Valte, spokeswoman for the presidential office of the Philippines declared that "The Taiwanese fishing boat attempted to ram our coast guard ship. It was without a doubt a provocative action."

Armand Balilo, Philippine coast guard spokesman detailed the story on the same day. According to the Manila Times, Balilo emphasized the incident happened in Philippine waters. He said the coast guard quickly left the area after they saw a third vessel, "a big white ship," besides the two Taiwan fishing boats they tried to approach, and felt threatened.

The actions of the Philippine coast guard narrated by both spokespersons could be interpreted from two perspectives.

For one thing, although the Philippines claimed the incident took place in Philippine waters, the Philippines doesn't have competent jurisdiction over the region, otherwise, the coast guard would not have been allowed to beat a hasty retreat.

It also shows that the Philippine authorities are very supportive of stirring disputes in disputed regions.

The Philippine government argued that the boat was attacked in waters where claims of rights of two sides overlap. In a region with controversial rights issues, each could come up with reasonable queries for the other.

The rights of Taipei and Manila in the disputed regions are undifferentiated. In past years Taiwan authorities didn't take enough action over the Philippines seizing and even killing Taiwanese fishermen, but that doesn't mean the Philippines can violate the international laws.

According to the United Nations Convention on the Law of the Sea (UNCLOS), coastal countries have the right of hot pursuit in their territorial waters. It grants coastal states the right to pursue and arrest ships escaping to international waters.

According to the Article 111 of the UNCLOS, "the hot pursuit of a foreign ship may be undertaken when the competent authorities of the coastal state have good reason to believe that the ship has violated the laws and regulations of that state. Such pursuit must be commenced when the foreign ship or one of its boats is within the internal waters, the archipelagic waters, the territorial sea or the contiguous zone of the pursuing state, and may only be continued outside the territorial sea or the contiguous zone if the pursuit has not been interrupted."

As a nod to the territorial principle, "the right of hot pursuit ceases as soon as the ship pursued enters the territorial sea of its own state or of a third state."

Hot pursuit is the most powerful right that international law grants to coastal countries over illegal operations of foreign ships in their waters.

However, the recent incident took place at 20 degrees north latitude and 123 degrees east longitude. It's not in the territorial waters of the Philippines, but in the overlapping region of exclusive economic zones.

The Philippines are not qualified to exert the right of hot pursuit in the region.

Even it could, the hot pursuit right is not applied to attacks by heavy weapons like the machine gun used in the latest case.

When international laws and principles that we think can protect us are violated yet again, we need to calm down and think carefully about how to deal with the other side.

By Ju Hailong
The author is a senior research fellow of the Institute of Southeast Asian Studies at Jinan University based in Guangzhou. opinion@globaltimes.com.cn

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Tap your phone's potential with NFC technology

Make your Android device smarter using a little-known technology called NFC.

 
HANDY: If you have an NFC tag in your car, you can quickly turn on or off functions (like Bluetooth) on your smartphone.

 

NFC stands for near-field communication, a short-range wireless communication technology that enables the exchange of data between devices over about a 10cm distance.

In certain countries, NFC has already been used to turn smartphones with embedded NFC chips, into mobile wallets.

Instead of using cash or credit/debit cards, the part of the smartphone where the NFC chip is located (usually on the back cover or in the battery) is tapped on the scanner for the transaction to be charged to the user's account.

Some countries have trialled the usage of NFC as a means of payment for public transportation too. Think of NFC as using your smartphone as a Touch 'n Go card and you'll get the picture.

Tag it

There are more and more NFC-enabled Android smartphones landing on our shores. While the use of it here hasn't reached the same level as some other countries, it is not without its usefulness.

The most publicised use of NFC is the ability to transfer files at breakneck speed by just bumping two smartphones against each other.

While it's impressive, the true potential of this technology lies in an external accessory known as an NFC tag.

NFC tags are basically stickers that are able to store information inside them. With the aid of any NFC app, which can be found in abundance in the Google Play Store, users can design a set of actions for their device to execute and then save the commands on the tags.

Whenever an NFC-enabled device is tapped on the tag, it will execute the commands.

The good news is that the tags don't cost a bomb. Even better news is that as long as you don't select to permanently lock the tag, you can always rewrite the tags, so they're pretty good value for money.

A popular app for customising tags is NFC Task Launcher by Tagstand (bit.ly/GMNn32). Available for free in the Play Store, the app allows users to include two different sets of actions in one tag. For example, tapping it the first time will enable a feature, and tapping it again will disable it.

There are many practical uses for NFC tags. We most commonly use it in our cars. Previously, we used to have to go through the hassle of manually switching on our smartphone's Bluetooth each time we entered our car. Now, it can be done easily just by tapping our gadget on an NFC sticker that we have pasted on the dashboard.

Besides Bluetooth, we have also set it to switch off WiFi, make the ringtone louder, and screen brighter. Tapping it again once we have reached the destination will reverse all the actions that were enabled earlier.

Sleep on it

While it is not advisable to have a mobile phone by your bedside due to the radiation it is said to emit, most people will still stubbornly insist on having it around as it doubles as an alarm clock.

We are guilty of this unhealthy practice, but have an NFC tag pasted beside our beds to hopefully mitigate the adverse effects. The tag is set to switch the phone to flight mode, as well as to dim the screen to the lowest brightness level. When it's time to rise and shine, the tag will re-enable cellular data and increase the screen brightness.

 
REMINDERS: You can set timers for tasks you do often like 
washing your clothes.

 

An interesting way to utilise the tag is by placing one on home appliances which require a specified amount of time to complete, such as a washing machine. If you're as absent-minded as us, once you start the machine, you can tap your Android on the tag to automatically start the timer so that you won't forget about collecting your laundry.

Sharing WiFi

Another use for NFC, which will be more practical once more smartphones have it, is the marketing possibilities it opens up. Instead of using QR codes, businesses can require their customers to just tap on an NFC tag to get more information about a promotion or their business.

Notice how most eateries offer free WiFi, but require a password to be entered? NFC tags have the capability to store wireless network settings, so all the consumers need to do is tap their devices on the tag and it will automatically connect to a wireless network, despite requiring a password.

This benefits the shop owners because customers will have to be physically present to connect to the WiFi, thus preventing non-customers from "stealing" their wireless connection.

This can also be used at home or the office when you want to allow guests to use the WiFi but don't want them to know the password. The tags can do more than just changing settings.

Users can prepare a text message and write it on the tag. Whenever your phone taps the tag, it will automatically send the text message direct to your desired recipient.

Very useful for those of you who usually report to your other half, or parents whenever leaving from work or school.

For those who aren't willing to spend or have no means of acquiring NFC tags, head to the Play Store and download AnyTAG NFC launcher by XtraSEC (bit.ly/ZEsf8l). Developed by Malaysians, this app enables NFC smartphones to detect any cards or devices that have NFC chips in them and associates an action with that device.

This means that us users won't have to specifically use NFC tags. We can make use of everyday cards around us, such as our MyKad and Touch 'n Go.

The good thing is that it only remembers the chip's ID and associates the desired actions with it, so it doesn't overwrite anything on the chip.

So don't worry about the card's chip getting messed up.

For those who are keen to make use of the NFC technology for the first time, do take note that it does not work when your Android's screen is locked.

That means that you will have to first unlock your device's screen before attempting to connect with another NFC device or tag.


By DONOVAN QUEK bytz@thestar.com.my



 Hidden in plain sight

 

INSTANT GRATIFICATION: You can mirror content from your 
smartphone to your HDTV.

 

NFC technology is most prevalent in smartphones but it is also being implemented in an increasing number of products, from toys to HDTVs.

Here's a list of products with built-in NFC which you may already have in your home.

HDTVs and cameras

Most new HDTVs come with the chip but it's not always in the TV itself. Sony is one of the companies that has integrated it into the remote control of selected Bravia HDTVs.

Just tapping the remote with your smartphone will allow you to mirror the smartphone's display on the big screen. This will allow you to browse the Web, share pictures and watch videos together with those around you.

If your Bravia doesn't come with one, you can still purchase the remote separately.

 

USEFUL: Sony Bravia 2013 LED TV has an NFC chip in the 
remote control.

 

Sony also makes speakers with NFC. One such model is the SRS-BTV5 wireless speaker. The compact model can double up as a speakerphone and has a rated battery life of up to five hours. Meanwhile, on the camera front, Samsung's NX300 allows photographers to easily transfer images to a smartphone or tablet via NFC.

Panasonic's DMC-GF6 camera also uses NFC for sharing images with a smartphone or tablet by touching them together. As soon as a photo is shot, the camera will send the image to the paired device. NFC also allows the camera to be remotely controlled.

Consoles and toys

One of the most popular toys on the market today is Activision's Skylanders. They are essentially figurines that are released in conjunction with the Skylanders games available for most consoles such as the PlayStation 3 and Xbox 360.

 

NFC TOYS: Skylanders fingurine with the Portal of Power.

 

The game comes with an NFC device called the Portal of Power which is plugged into the game console. When a figurine, which also comes with built-in NFC, is placed on the Portal, a virtual version of the character appears in the game.

The interesting thing about the NFC in Skylanders is that it actually can store a limited amount of information, specifically the character's bio. When the figurine is taken to a friend's house to play, it will have all the levelled-up powers and customisation.

Of the popular videogame consoles, only one features NFC.

The chip is currently integrated into the Wii U's GamePad controller, and while it holds a lot of promise for future games, none actually make use of it.

 

PROMISING: The NFC chip is integrated into the Wii U's 
GamePad controller and holds a lot of potential for future games.

 

However, this is likely to change as game developers will inevitably find a use for it.

Notebooks

Lenovo has launched its ThinkPad Helix, a 11.6in Ultrabook powered by Windows 8.
It allows users to transfer data from compatible devices by just placing them close to it.

 

Lenovo ThinkPad Helix

 

The company plans to add more features such as allowing customers to make online purchases by tapping a credit card on its notebooks.

Sony, on the other hand, has announced that its latest Vaio Fit Ultrabook will also use this technology for sharing website URLs and other information with NFC-enabled devices

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End the race-based governance in Malaysia!

The recently concluded general election has emphasised the need for a new direction in political leadership.

 1Malaysia: A cartoon posted on Facebook that reminds us of the many races that make up the Malaysian population.

IN the aftermath of GE13, I am deeply saddened because even my childhood friends of different races and political preferences have expressed strong disagreements to a pictorial message I have shared on my Facebook page.

We had been exchanging happy thoughts and warm remarks prior to the run-up to the election.

Perhaps it was due to my recent vigorous postings of shared materials of political nature that provoked such a reaction. Perhaps there is a lesson I should learn here moderation must be the order of the day.

They have their reasons and freedom to make their statements but I hope one day, they will agree with me.

If we start to think outside our “old school” box and work hard enough, it will happen.

A non-race-based government whether from a structurally changed and re-invented Barisan Nasional or one promised by opposition parties is not impossible.

The road may be long and hard but I am willing to commit myself to it by supporting any political character who can sensibly offer this discourse. I am not one of those who believe it should have happened on May 5 or come next polling date.

We are too complicated a society to manage and the core risks involved are plentiful. A good leader will have to be wise and intelligent enough to take them on bravely.

Superficial public relations exercises will not do.

If we refuse to open up and face reality in this rapidly changing world, we may be depriving ourselves and the younger generations of better living.

Eventually everyone, including rural society, can access massive amounts of information on what they believe to be relevant and good governance expected of politicians. Driving fear into people to submit has reached the end of its game, it is now a repellent rightly or wrongly.

I am not a fan of Opposition Leader Datuk Seri Anwar Ibrahim or US president Barack Obama.

But I do believe the eventual abolition of racial discrimination and polarisation or the minimisation of both can happen if Malaysians are smart or “lucky” enough to choose leaders who will take up this challenge.

Skin colour does not matter as long as they serve all quarters of society well.

Substance, sincerity and integrity are paramount.

I grew up with the nation and I have observed how political awareness has progressed with the young. I am truly impressed by how fast Umno Youth chief Khairy Jamaluddin and PKR vice-president Nurul Izzah Anwar have matured politically over the past five years.

Although idealistic by our “old school” standards, I believe they will learn.

Almost all Malaysian voters of mature age and mind understand that change will not result from victory in an election.

Given the right leader, supporting leaders and alliances including co-operation from opposition parties, any radical change from our long-held ideology of race-based politics and governance encompassing negotiated quotas and allocations of power according to numerical racial composition would be a mammoth task.

It was the best option during its inception 56 years ago but has since undergone diminishing relevance and caused ills.

Racial polarisation and anger clearly proved its point during elections. It is scary to take note of the many dangerous minds revealed in the mainstream and social media during and after GE13.

Nobody says it is going to be smooth sailing into happiness if any political party that subscribes to a non-race-based government wins the election.

In fact, citizens should understand and I believe many do that it is going to be the start of a messy, confusing and noisy learning process for politicians as well as common folk.

But if we do not start and strive, we will never get there.

I am willing to place faith in the emerging generation after the “baby boomers” to which I belong. And they certainly have made their choices heard during this general election.

While the wealth of experience and knowledge from veterans are invaluable, it is time to let go of absolute power where and when appropriate.

This is what smart, skilful and high-worth senior leaders are made of. They should visualise happier present and future generations in a highly globalised environment and make it happen.

Upholding themselves as pillars of strength and support with integrity to nurture and groom future leaders would be crucial.

Setting or making nominal modifications to perimeters within old frameworks only acts as a stumbling block to healthy and free economic and social development.

Cosmetic touches do not constitute real change when fundamentals and core social values have already evolved cumulatively and drastically over half a century.

The perceived control and manipulation of the mainstream media by the Government disappoints many well-informed citizens who have turned to the alternative media for enlightenment.

It is a failing of the media to serve the interests of the people if there is no timely dissemination of truths on what concerns them most.

We cannot deny the fact that alternative, especially social media, can be fairly damaging to society while it has its importance. Ugly comments, false information and rumours are rife and confuse even the most level-headed people.

If we love this country, our friends and neighbours, we should switch on our conscience and let it guide us to find wisdom.

By CHEN YEN LING
newsdesk@thestar.com.my

> Chen Yen Ling is a certified accountant who also dabbles in writing.

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Would DAP join BN to ensure Chinese representation...

Would DAP join BN to ensure Chinese representation in the Malaysian government?

The DAP is open to suggestions on the need for Chinese representation in the government and will respond to them later, advisor Lim Kit Siang said here Thursday.

"There seems to be a lot of suggestions and proposals. We (will) give them time to come out with suggestions. We will wait and see," Lim told a press conference when asked to comment on calls for the DAP to join Barisan Nasional (BN) to ensure Chinese representation in the government.

Former information minister Tan Sri Zainuddin Maidin yesterday said this would obviously be difficult for DAP and BN and their supporters, but needs to be done in the interest of harmony and political stability in the country.

MCA central executive committee member Datuk Seri Ong Ka Chuan in an interview with Sin Chew Daily yesterday said the DAP can represent the Chinese community's interest at federal government level.

In 13th general election (GE13), BN won 133 parliamentary seats out of the 222 at stake to again form the government with a simple majority, while Pakatan Rakyat took 89 seats.

Datuk Seri Najib Tun Razak who took his oath of office as Prime Minister before the Yang di-Pertuan Agong on Monday is short of Chinese candidates for his new Cabinet.

This is because BN component the MCA, which only won seven of the 37 parliamentary seats contested has decided to forgo Cabinet representation.

Meanwhile, Gerakan deputy president Datuk Chang Ko Youn said the party will not follow the MCA by rejecting all government posts.

Gerakan won only one parliamentary seat and three state seats. It had contested in 11 parliamentary and 31 state seats nationwide.

-- BERNAMA

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Rising tides of currencies globally cause inflation, money worthless!

A PACKET of nasi lemak (rice cooked in coconut milk) with a fried egg costs around RM2 nowadays. I remember getting a similar packet (and in bigger portion) at RM1 ten years ago. It is a 100% price appreciation in ten years! My friends and I were jokingly saying that nasi lemak would be a good investment tool if it can be kept for ten years.

However, all of us know that nasi lemak is best served when it is fresh. It can never be kept for long despite its potential for value appreciation. In fact, its value will drop to zero as soon as it turns stale. And interestingly, the same situation applies to the money we hold today. Our currency can be as “perishable” as nasi lemak in this global money printing era if money is not produced for the right purpose and use in the right way and the right time.

The global economies have been embarking on expansionary monetary policies since the financial crisis broke out in 2008. Central banks around the world are printing money to support their economies and increase exports, with the United States as the primary instigator.

The Mighty Dollar

Since 2008, the Fed initiated several rounds of measure termed “Quantitative Easing”, which is literally known as an act of money printing. The Fed's balance sheet was about US$700bil (RM2.1 trillion) when the global financial crisis began; now it has more than tripled. With several countries' central banks including the European Central bank, the Bank of Japan and the Bank of England taking similar expansionary measures and encouraging lending, more than US$10 trillion (RM30.3 trillion) has been poured into the global economy since the crisis began.

While the global central banks have become addicted to open-ended easing and competed to weaken their currencies to boost economies, the impact of these measures to the global economy is not quantifiable or realised yet. However, basic economic theory tells us that when there is too much money chasing limited goods in the market, it will eventually spark inflation.

When money is created out of thin air, there is no fundamental support to the new money pumped into the economies. More money supply would only be good if the productivity is going up or in the other sense, when more products and value-added services are created. In the absence of good productivity, more and more money would not make people richer. Instead, it would only decrease the purchasing value of the printed notes.

Let's imagine a more simplified situation. For example, we used to purchase an apple for RM1. If the money supply doubled but the amount of apples available in the market remains, one apple will now costs us RM2 instead of RM1. Now, our money has halved its original value. If the central banks of the key economies keep flooding the global markets by printing more money, the scenario can only lead to the worst, i.e. hyperinflation.

This occurred in Germany after the First World War. Hyperinflation happened as the Weimar government printed banknotes in great quantities to pay for its war reparation. The value of the German banknote then fell since it was not supported in equal or greater terms by the country's production.

Flood of money

The sudden flood of money followed by a massive workers' strike, drove prices out of control. A loaf of bread which cost 250 marks in January 1923 jumped to 200 billion marks in November 1923. People collected wages with suitcases. Thieves would rather steal the suitcase instead of the money, and it was cheaper to light fire with money than with newspaper. The German currency was practically worthless during the hyperinflation period.

That scenario may seem incredible in today's context. Nevertheless, we should not downplay the severity of a global inflation should the current synchronised money printing push the economies of major countries to burst like a balloon in sequence.

When this scenario happens, people with savings and fixed income will likely be the hardest hit. To withstand the tide of inflation, the best defence is to invest in assets such as publicly traded shares, metal commodities like gold and silver and properties that can hedge against inflation.

Investing in any assets require in-depth research before embarking on one. Commodities and stock markets are liquid assets that can be bought and sold with relative ease, while properties are favoured as long-term investment.

With Malaysia's current economic and population growth, added with its still comparatively low property prices in the region, our primary and secondary market properties are good investment assets for investors to gain from the continuous capital appreciation that this industry is enjoying.

With the above as a backdrop, are property prices really going up globally?

Using the nasi lemak analogy, if we were to buy a RM100,000 medium-cost apartment 10 years ago, it would be equivalent to 100,000 packets of nasi lemak. Assuming it has doubled in price today, it would still be the equivalent of 100,000 packets of nasi lemak at RM2 today. It would seem to me that the true value of properties hasn't gone up, but that global currencies have just gotten cheaper.

FOOD FOR THOUGHT
By DATUK ALAN TONG

FIABCI Asia Pacific chairman Datuk Alan Tong has over 50 years of experience in property development.

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