The cost and funding of the Hong Kong violence in CIA innumerable US regime-change, a price on freedom

Protesters in protective gear holding up a symbolic yellow umbrella and an American flag while marching through the Sha Tin District in Hong Kong earlier in the month. Sights such as these are fuelling speculation about foreign involvement in the ongoing protests. — AP

https://youtu.be/huXI39jtq1s - Thousands rally to denounce violence and support Hong Kong police

https://youtu.be/tOw6kfhS1Ns - Annie Wu: Young HK people need to learn to become Chinese

There’s no such thing as a free lunch, and likewise, in the pursuit of democracy, there will always be casualties.

ONE of the most avid speculations about the Hong Kong protests is whether the CIA is involved, and this talk is fuelled, no less, by warnings from the Chinese to the US to keep out of Hong Kong’s affairs.

Last week, former HK chief executive Tung Chee-hwa was more ominous, openly accusing the US and Taiwan of orchestrating “well-organised” recent protests.

The first retaliatory strike from China on Taiwan was the ban on solo travellers, involving 47 mainland cities to Taiwan, which will cost the island state US$900mil (RM3.75bil) in tourism dollars by January.

Let’s look at these accusations rationally, though. It’s impossible for the CIA to hire such a massive crowd in Hong Kong.

The anger is real, though, and the spontaneity of the protests speaks for itself.

There has been growing frustration among the people, especially the younger generation, over what they see as the decline in living standards, and many now don’t see a future in the city.

The amendment to the Extradition Law has touched a nerve among HK citizens because many perceive they would not get justice or due legal rights under China’s mainland rule.

Let’s put it this way, the judicial independence in China isn’t ranked highly by international standards, and even Chinese nationals complain about it.

HK citizens are concerned that their city will be like any other mainland Chinese city, where the citizens’ freedom could be compromised, although one wonders how many of these protesters truly believe they would ever get extradited to China in the first place.

The Bill is, essentially, a manifestation of the frustrations that have built up, and its timing allowed for that volcanic eruption of anger.

It’s unlikely the young protesters were aware that HK has, in fact, extradition agreements with 20 countries, including Britain and the United States. From China’s point of view, why can’t there be one with the mainland?

Against this backdrop, with students on summer holidays, the perfect concoction was created, building up a massive protest for an international audience.

The timing couldn’t have been worse for HK chief executive Carrie Lam to push the Bill through – this is the season of protests, coinciding with the anniversaries of the Tiananmen Square incident and British handover of HK to China on July 1, 1997.

By now, it’s clear that Lam is a technocrat who isn’t politically savvy, and her lack of learned leadership during a crisis shows her shortcomings in being the best person to helm HK, even though China continues to back her.

The Bill has been suspended since June 15 until further notice, but not withdrawn. She has said the legislation process was a complete failure and that “the Bill is dead”, but she hasn’t enacted any legislative process to withdraw the proposal either.

So protests will likely continue, but nothing is free, and that includes the business of organising well-planned weekly protests.

Over the past month, the media has been reporting that groups involved in the protests have received significant funding from the National Endowment for Democracy (NED), “a CIA soft-power cut-out that has played a critical role in innumerable US regime-change operations, ” according to writer Alexander Rubinstein.

The report claimed that the NED has four main branches, at least two of which are active in Hong Kong: the Solidarity Center (SC) and National Democratic Institute (NDI).

“The latter has been active in Hong Kong since 1997, and NED funding for Hong Kong-based groups has been consistent, ” Louisa Greve, vice president of programmes for Asia, Middle East and North Africa, was quoted.

While NED funding for groups in Hong Kong goes back to 1994, 1997 was when the British returned the territory to China, it was reported.

The report said in 2018, NED granted US$155, 000 (RM645, 885) to SC and US$200, 000 (RM833, 400) to NDI for work in Hong Kong, and US$90, 000 (RM375, 000) to Hong Kong Human Rights Monitor (HKHRM), which isn’t a branch of NED, but a partner in Hong Kong. Between 1995 and 2013, HKHRM received more than US$1.9mil (RM7.9mil) in funds from the NED.

This isn’t the first time the NED’s name has cropped up either.

During the 2014 Occupy protests, the spectre of NED in the protests and the foreign philosophies it represented also came up.

The NED was set up in 1983 to channel grants for “promoting democracy” and it’s said that it receives US$100mil (RM416mil) annually from the relevant agencies.

Hong Kong media tycoon Jimmy Lai has also been accused of funding the protests. He has taken it a step further by meeting US Vice President Mike Pence and Secretary of State Mike Pompeo in Washington DC to discuss the Bill and the city’s situation.

Lai is the owner of Next Digital, which publishes both the pro-democracy Apple Daily and Next Magazine, among others.

Predictably, the Chinese Foreign Ministry in Hong Kong issued a statement saying it has lodged a solemn representation at the US Consulate General in Hong Kong to ask the US to stop its “mistaken words and deeds”.

A spokesperson for the local Commissioner’s Office said that it strongly opposed foreign forces interfering in Hong Kong’s affairs.

“The US side clearly knows who Jimmy Lai is, what his stance is, and what his role is in Hong Kong society. Top US government officials have ulterior motives and sent a seriously wrong signal when they queued up to meet such a person at this sensitive time of Hong Kong – we express our strong discontent and opposition, ” it said.

In 2014, the South China Morning Post reported that Lai spent millions funding the Occupy Central protests.

The SCMP reported that Lai’s group offered extensive advice – including propaganda material – to the Occupy Central organisers, whom Lai dismissed in private as “idealist scholars” who “couldn’t make the cut without help”.

The emails were leaked by the same person who sent documents detailing the Next Media chairman’s political donations to various pan-democrats two weeks ago. It isn’t clear how the documents were obtained, though.

One of the exchanges between Lai and his top aide, Mark Simon, indicates that Lai spent some HK$3mil (RM1.6mil) to HK$3.5mil (RM1.8mil) to help the plebiscite. The email did not detail how the money was spent, only mentioning that the costs included “advertisements and billboards”.

In a rebuttal, Lai said that while he had donated large sums of money to politicians in the pro-democracy camp, he had not given a cent to the co-founders of Occupy Central. His newspaper, though, had given the movement discounts for advertisements.

China cannot be faulted for seeing shadows of foreign influence in the protests. It doesn’t help that protesters, pressing for independence, are waving colonial British and US flags, and what began as peaceful protests has now degenerated into riots, a term the demonstrators have also challenged and protested.

There is much irony in the HK protests. The late kung fu legend, Bruce Lee, has become an icon in the protests because of his philosophical advice to “be formless, shapeless, like water, ” in his role as Li Tsung, a martial-arts instructor in Longstreet, a US TV series.

Basically, the protesters should take on the HK police with a new tactic: formless, shapeless protests in scattered parts of the territory, aimed at wearing the authorities down.

But older folks like me would probably remember a better scene in the movie Fist Of Fury, where he kicked and smashed a sign at the gate of Huangpu Park which read, “No dogs and Chinese allowed”. The park in Shanghai was closed to the Chinese between 1890 and 1928.

It has been said, according to some reports, period photographs show a sign listing 10 regulations, the first of which was that “The Gardens are reserved for the Foreign Community”, with the fourth being “Dogs and bicycles are not admitted”. Any way you cut it; the Chinese weren’t allowed in the foreign settlement.

What has happened in HK is that the protests’ demands have grown exponentially, bordering on calls to be independent and free from China. Tragically, it has also become more violent by the day.

In calling for freedom of speech, citizens who disagreed with the protesters have found themselves beaten up, which seems to go against the grain.

When violence committed on the police and those who disagree are embraced or encouraged as part of a democratic process, and the destruction of public properties is accepted as a minor price for freedom, then something has gone badly wrong.

By Wong Chun Wai who 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 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.

chunwai@thestar.com.my https://twitter.com/chunwai09 http://www.wongchunwai.com/

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Hong Kong. -Bloomberg pic

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While the China-Hong Kong union still sits uncomfortably at times two decades on, the road ahead is slowly but surely being paved.

IT’S lunch time in Hong Kong, but the soya sauce chicken rice seller at Queen’s Road in Shek Tong Tsui is looking distressed as the crowd isn’t up to expectations.

Rental is high in Hong Kong and customers are obliged to share tables in small eateries like the one I was in.

Once eagle-eyed restaurant owners spot the conclusion of a meal, patrons are swiftly handed their bills, subtly suggesting they leave the premises to make way for incoming customers. Otherwise, they’d earn short shrift from irate staff.

Life is hard in HK and most residents feel that it has become much harder.

The older ones are more tolerant and patient because they have lived through the country’s high and low points. They include those born in China who came to the island with their parents.

Retired civil servants complain of promotions bypassing them because the top posts were reserved for the whites under British colonial rule. They felt humiliated and have never forgotten this marginalised treatment.

The young ones are becoming angrier now. They see HK deteriorating, reflected in their inability to buy a flat the size of a car park lot, because something even that small would probably cost millions of ringgit.

HK is a crowded city where space is at a premium. Space, meaning a hole in the sky. Landed properties are for the super rich in a land where being rich alone isn’t enough.

Regular visitors to HK will tell you that the streets are filled with people for a simple reason: it can be claustrophobic living in a 400sq foot – or less – flat.

HK residents sometimes joke that they need to leave their flat to provide “privacy” for newly married children who sometimes can’t afford their own homes and still need to live with their parents.

“The walls are too thin, and it is best we give them some space, you understand what I am saying, right?” said my HK friend as we chuckled about the reference while dining on dim sum.

The waiting period for public housing is five years, if you are lucky, and it’s not uncommon to see an entire family living in one room in many parts of downtown HK. Apparently, more than 200,000 people live in subdivided homes.

Forget politics for a minute and let’s talk facts. An international survey reportedly showed HK sliding 12 places to an embarrassing 41 as a liveable city for Asian expats, its worst ranking in a decade.

“We call ourselves Asia’s world city, but Asians have given us the thumbs down as a liveable city. That’s a paradox that should shame us,” the South China Morning Post (SCMP) newspaper reported.

Over the last two decades, HK people have found themselves priced out of the home market. The cost of living has gone up, but the standard of living has dropped sharply.

The smog has worsened and there are regular reports of hospitals overflowing in the winter months every year, ushering in the routine flu outbreak.

The competition for space is a serious concern in HK. The resentment towards China is simply because people in HK have found it hard to compete with the deluge of mainlanders.

Each time I go to HK, I can’t get past the sight of long queues of people from China – with deep pockets – at luxury goods outlets at Central.

“Last year, 65 million tourists flooded Hong Kong. That’s only about 10 million fewer than for the whole of the United States. Almost 80% who came were mainlanders, most of them day trippers who swarmed residential areas to buy groceries, ruining the quality of life for locals.

“How can life quality improve if you add the four million mainlanders who come monthly, on average, effectively raising Hong Kong’s population to well over 11 million?” pondered columnist Michael Chugani in the SCMP.

Milk powder is a favourite item of the mainlanders when it comes to groceries because of food safety concerns back home. Every mum and pop shop in HK seems to share a similar inventory.

HK people are loud and opinionated. And often crude and crass even, especially, when speaking in Cantonese. This is a city of very hardworking and motivated people. It’s commonplace for a person to be doing two or three jobs to ensure ends are met, but these people also acknowledge the city has long passed its prime, with stats indicating its lost position as one of Asia’s top cities.

It has surrendered its edge as a financial hub to Shanghai and even nearby Shenzhen.

Chronicling the events of the last two decades reveals how those fortunes changed. Imagine that in 1997, China was very much reliant on HK, largely because the global superpower had not yet made it into the ranks of the World Trade Organisation (WTO), which was stunting and limiting its export trade.

So HK’s position as a channel for entrepôt trade was exploited to deliver mainland-made goods to the rest of the world via its ports, and crucially, by circumventing the WTO’s trade restrictions. But that all changed when China entered the organisation in 2001, and from then HK began to play a diminishing role. The island went from handling half the republic’s trade in 1997 to a measly 12% today.

“In terms of total size and wealth, Hong Kong has also shrunk relative to China, which has experienced more than three decades of astoundingly high economic growth. In 1997, Hong Kong’s economy was one-fifth the size of China’s, and its per capita income was 35 times higher. By 2018, Hong Kong’s economy was barely one-thirtieth the size of China’s. Hong Kong is still richer, but the gap is narrowing, with its per capita income now five times higher than China’s,” claimed the New York Times International.

And to exemplify China’s newly accrued wealth, on a trip to Guangzhou, my jaw dropped when I saw the homes of the mainland Chinese in a sprawling gated property built by Forest City.

The HK film industry has nearly collapsed. With only the TV dramas in Cantonese keeping some actors home, most HK movie stars and singers have moved to China, where they are better paid and command bigger audiences.

Some still struggle to speak fluent Mandarin and drop their Cantonese accent, but most have successfully made the transition.

Knowing the realities of the huge China market, and not wanting to offend their audience, most of these big names opted to stay away from the recent HK protests. Pro-Beijing Jackie Chan was lambasted for pleading ignorance of the protest march.

Still, HK has its assets, though. It has an efficient administration system and remains an important channel. In China, tighter capital control measures are making it increasingly difficult to access outside money, the SCMP said.

“Hong Kong is also a top offshore yuan trading centre, leading the way for wider use of the Chinese currency in trade and finance – a priority for Beijing as it pushes for the yuan’s internationalization.

“... Hong Kong can also do more down the road. It can foster an ecosystem for the yuan currency, developing derivatives and indexes to convince people to hold the yuan in larger amounts,” Oliver Rui, a professor of finance and accounting in China, was quoted.

But China needs to do more to secure the faith of the islanders.

HK people understand and accept they are a part of China. There is no turning back and nothing is going to change that.

Hoisting British flags may be the manifestation of frustration for the idealistic young, but it won’t change their destiny.

At the same time, China needs to wake up to the fact that only 3.1% of those aged between 18 and 29 in HK see themselves as broadly Chinese (China nationality). This compares to 31% in 1997, according to a report based on a survey by the University of Hong Kong.

And we know that many of those who took part in the recent street protests included secondary school children, some not yet even 18 years old.

Even though China has overtaken HK, particularly from an economic standpoint, Beijing needs to foster and maintain a sense of inclusion, especially when the islanders don’t feel they are a part of China.

There was a time when HK residents laughed at mainlanders, calling them the disparaging “Ah Chan”, or village simpletons. However, mainlanders are growing richer and more powerful now. But like all good “bosses”, China needs to treat the island’s residents with respect, and it needs to motivate and win over their hearts and minds. China must make them proud to be Chinese citizens.

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Malaysia's education policy must champion Meritocracy instead of Mediocrity system

Meritocracy Vs. Mediocrity

Education system must champion meritocracy

THE country is facing yet another controversy of its own making – the matriculation programme for university entrance or matric, for short.

The matric programme was introduced 50 years ago to increase the enrolment of Malay students in the medical, dental, engineering and other science and technical studies at public universities. It was an interventionist policy to produce more Malay graduates for the professional occupations in government service as well as in the private sector, as part of the New Economic Policy to redress the racial educational and economic imbalances in the economy.

The programme was reserved exclusively for Malays but due to political pressure from other races , the government allowed a 5% quota and this was later increased to 10% for non-Malay students. Recently, with demands for more non-Malays to be given places in matric, the government increased the total number accepted into the programme from 25,000 to 40,000 while keeping the racial quota unchanged.

There are concerns that the large increase in the number of university intakes from the matric programme will reduce the places available for STPM students and affect the quality of education. There are already complaints from parents that even though their children who go through the two-year STPM are more educationally qualified than the one-year matric students, and have a stronger command of English, they cannot get a place in public universities because of the preference given to intakes from the shorter programme.

Fifty years on, this programme is still in place, despite the huge investments made by government through the Education Ministry to increase the access to STPM (Form VI) level education in both the arts and science streams in all parts of the country.

Malay students in rural areas today are no longer facing a disadvantage in educational opportunities as there are many secondary schools with Form VI classes.

However, their parents prefer that they apply for the matriculation course as it is a faster and easier route to university.

As they are specially selected for the matriculation course, the students have a greater certainty that they will be given places in the medical , dental and engineering faculties. Another attraction is that there is very little competition with other races in the matriculation course.

There are suggestions that our universities should raise their entrance requirements so that they can get better qualified student intakes to facilitate higher quality teaching and learning and produce graduates with the right skills for the job market . This can be achieved by a policy decision that university entrance must be through the STPM stream only and that the matric programme will be scaled down to be eventually terminated as it is not a good alternative in preparing students for university education.

Matric has also become a source of continuing friction among the races as they feel that education is a human right and should not be subject to racial politics.

It is inevitable that there will be complaints from certain quarters against closing down the matric programme but the government must stand firm not to perpetuate a system that encourages mediocrity. If the country is to succeed in the digital revolution, and make Malaysia a fully developed economy, the education system must shift direction towards competition and meritocracy. The abolition of the matriculation programme will show that Malaysia is serious in moving in that direction.

TAN SRI MOHD SHERIFF MOHD KASSIM


Another brick in the wall

https://youtu.be/YR5ApYxkU-U- a protest song against rigid schooling

Education is that realm where wrongs are set right and learning thrives, yet, right off the bat, the new matriculation intake has found itself in murky waters.

SOME leaders in our federal and state governments, now or then, seem to be guilty of this habit – announcing decisions before studying the implications of their policies.

So it was no surprise that after the Education Ministry announced the controversial changes to the matriculation programme, a row erupted, and soon, the Prime Minister had to weigh in on the debate.

Tun Dr Mahathir Mohamad said he would address the quota system issue of the pre-university matriculation programme intake.

When asked for his comments on whether the quota system would be abolished, he said: “We will study the problem.”

Once again, it looks like the 93-year-old leader must step in to clean up another mess before things start to stink.

The controversy exploded when the Cabinet decided to increase the number of students entering the matriculation programme from 25,000 to 40,000 while maintaining the 90% quota for bumiputra students.

The matriculation programme was originally aimed at encouraging bumiputra students to pursue studies in science.

The highly sought-after programme – due to its cost-effectiveness – is equivalent to a one- or two-year pre-university course, and enables students to pursue a degree upon successfuly completing the programme. Enrollees only need to pay a registration fee and the rest is borne by the government.

However, the concern now is that by doubling the matriculation intake, it will affect the seats available to those vying for places in public universities via the Sijil Tinggi Persekolahan Malaysia (STPM) route.

During my time, in the 1980s, when I was sitting for the then Higher School Certificate (HSC), the matriculation programme had already been launched. At present, STPM and matriculation students number about 43,000 and 25,000 respectively.

No rational or fair person will begrudge aid provided to students who need a helping hand, let’s be clear.

But I am not sure if the ministry has given thought to the fact that we may have a surplus of matriculation students – about 60% – at the expense of their STPM counterparts.

Let’s give the ministry the benefit of doubt that they surely would have, given the many experienced experts there, but no narratives have been forthcoming to explain anything to parents and students, especially those preparing for their STPM exams this year.

If the government plans to double university intake, have backup plans been installed to accommodate the sudden surge in science students into our financially-strapped universities?

While non-scholarship students in public universities must pay their own fees, matriculation students not only get free education, but are given allowances, too.

Public universities are already cutting down on contract academic staff as fundraising programmes are being carried out.

Unemploy-ment is underscored by the huge number of jobless graduates, whose changing fortunes have found them unemployed in a soft market. In some cases, their weak language and social skills put them at a disadvantage.

As the intake increases, other relevant infrastructure, like hostels, laboratories and teaching staff, won’t multiply overnight, as MCA president Datuk Seri Dr Wee Ka Siong rightly pointed out.

“How will the ministry ensure quality in matriculation education? And the suggestion of getting teachers from teachers’ training colleges to teach in matriculation is illogical because their syllabus is totally different,” he said.

The new matriculation policy has also taken the race-based programme to another level and goes against the aspiration of being an inclusive New Malaysia.

DAP leader Dr P. Ramasamy has rightly said the increased quota for bumiputra by the government was spurred by fears of a backlash from sections of the Malay-Muslim community. This is what happens when political expediency and interest come into play.

The former Universiti Kebangsaan Malaysia political science lecturer said with the revised quota, the bumiputra allocation will increase the number of

students from 22,500 to 36,000.

He said, in comparison, the number of non-Malays will increase by only 1,500 students, beyond the current 2,500.

“I’m taken aback by the Cabinet’s decision. We have failed to move forward. It appears as though the Cabinet was not prepared to take a bold decision in increasing the intake of non-Malay students, particularly Indians.”

Education Minister Dr Maszlee Malik, in defending the new policy, said all students deserve a “better opportunity” when they apply for matriculation placement, adding that “the bumiputras will still enjoy their 90% quota”.

Dr Maszlee reportedly said the increased intake for matriculation students was based on a Cabinet decision to get more students into tertiary education and to accord all races equal opportunity.

He also said the Cabinet had instructed his ministry to discuss with the Finance Ministry the government’s burden in bearing the cost of the increased number of matriculation places.

This looks like another case of putting the cart before the horse. Announce first and work out the maths later.

Instead of emphasising need-based programmes, the government has, instead, strengthened a race-based system.

As a student at university, I was often queried by my well-intentioned Malay varsity mates about which scholarship I had obtained. I jokingly told them it was FAMA – father and mother.

I’ve always been grateful for having secured a place in a local university, particularly since there were only five then – and certainly no private universities – and that gratitude has only grown since that degree helped change my life.

And that conveniently brings me to my point: Let’s not deny our children, regardless of their race, a place in our universities, which are funded by multi-ethnic tax payers.

If parents are financially sound, no prayers would be needed for students to earn slots in our public institutions of higher learning, it’s that simple.

By Wong Chun Wai

Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 27 years in various capacities and roles. He is now 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.

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New Malaysia should push for meritocracy

It’s time for Penang to reinvent itself; RM70bil to be raised from the 3 man-made islands to finance LRT, PIL infrastruture under PTMP

Looking ahead: An aerial view of Penang’s Free Industrial Zone. Penang is banking on land reclamation to the south of the island to help fund the state’s economic development.

ALMOST three decades ago, my then news editor Nizam Mohamad tried to convince me to work in Kuala Lumpur instead of remaining content in Penang, but like most Penangites, I enjoyed the slower pace of life on the island.

The food was good, the beach was marvellous, and I could be with my sweetheart, now my wife. I had my friends, who were my schoolmates, and my family members.

Finally, when the Commonwealth Heads of Government summit was held in KL in 1990, Nizam asked me to “help out with the coverage”.

When I reported for duty, he handed me my transfer letter on the spot. It was as simple as that, and I remember he told me that “you would go nowhere if you remain in Penang”.

For decades, skills migration and brain drain, and the lack of high-quality job opportunities, has been Penang’s Achilles heel.

Shoe designer Datuk Jimmy Choo wouldn’t have become a world icon had he remained in George Town. The same fate could have befallen sports personalities Datuk Lee Chong Wei and Datuk Nicol David had they, too, not moved to KL.

Munich-based Datuk Ooi Chean See would have no renowned orchestra to conduct if she were still in Penang, and Hong Kong-based fund manager, Datuk Seri Cheah Cheng Hye, wouldn’t be a billionaire had he stayed put in the state.

Nizam was right, and I am thankful for his foresight. Like many of my fellow islanders, our careers have moved up and onwards since moving to the nation’s capital, given its greater opportunities.

Penangites, many of whom now work outside the state, generally also lack properties in the state because we no longer live there. The rental yield simply doesn’t make business sense for investment.

The truth is, Penang is stagnating and hasn’t been able to reinvent itself. The state remains dependent on the electrical and electronics (E&E) sector. Putting it more accurately, with a GDP of RM80bil, half of Penang’s economy is reliant on this sector with the other half on tourism and the services industry.

Despite having achieved a high growth rate of 11% per annum between 1970 and 2008, growing from RM790mil in 1970 to RM49bil in 2008, GDP growth rate has slowed down to 5% for the past 10 years.

The past decade also saw GDP per capita easing off to 4% per annum, and with inflation at 3% per annum, the standard of living for Penangites has been on the decline, relative to the past four decades.

Growing up on the island, where I spent much time at the Batu Ferringhi beaches, we all know why it’s now hard for Penang to compete against the likes of Bali, Phuket and Koh Lipe as its beaches and water have simply lost their lustre.

Penang can no longer call itself the “The Pearl Of The Orient” or even “Penang Leads”, a tagline locals revelled in during the era of then Chief Minister Tun Dr Lim Chong Eu.

The state is losing ground in tourism, especially with it having not invested sufficiently in this sector, a situation compounded by how cities around the world are reinventing themselves.

In the E&E sector, we are trapped between China and Vietnam, two fast-moving low-cost locations, while Singapore and Taiwan portray highly skilled research and design centres. Basically, we’ve lost out on both ends.

More discouraging is how Penang, especially the island side with its premium value, has run out of land for safe development, open spaces and infrastructure.

Much of the state’s people are unaware that almost 40% of Penang’s land is classified as Class III or above. This classification means that the terrain is sloped at more than 25 degrees, measured from a horizontal plane.

These are the foliaged hilly and sloppy terrains subjected to undue pressure from hillside developments. Recent catastrophes of landslides, floods and fatalities remain etched in our minds.

It has become increasingly difficult to buy homes on the island, and it’s common knowledge how rich Singaporeans have snapped up the pre-war homes in heritage sites there for a song.

As land becomes scarcer, the manufacturing and services sector will not be able to grow and will remain stunted.

That could all change soon with the state and federal governments now under the rule of the same political coalition. The state needs to accelerate its inevitable transformation which will fundamentally change the way Penangites live and work, and it needs to embrace digital economy, globalisation and urbanisation. To put it succinctly, Penang must brand itself a Smart City.

In other countries, there is always a second city – Beijing and Shanghai, Sydney and Melbourne, Hanoi and Ho Chin Minh, New York and Los Angeles. However, George Town has never been able to capture the second city status (partnering KL), and it must now compete with Johor Baru for that prestigious identity. Penang has severely lagged.

Understandably, most Penangites are averse to change. Putting up buildings doesn’t mean development, and besides, no one comes to Penang to see skyscrapers. The quality of life is important, and it’s fortunate that Penang has a vibrant civil society.

The non-governmental organisations are alert and outspoken, and that’s what a mature democracy should be like – keeping a close eye on politicians.

But Penang can’t remain stagnant, so it needs land. All around the world, land reclamation is a norm. Just look at Singapore and Hong Kong. Manhattan wouldn’t exist if New York didn’t add land to it. And if Johor hadn’t done the same, Singaporeans can see Johoreans from their flats, as they reclaim without any debates.

“Location, location, location” is the mantra of land developers. The plan to create three man-made islands, totalling 1,821ha (4,500 acres) under the Penang South Reclamation Scheme (PSR) is proof of heading in the right direction. The RM70bil deal involves the construction of the RM9bil rail transit (LRT) line, the RM9.6bil Pan Island Link 1 (PIL1) and other supporting infrastructure projects under the Penang Transport Master Plan (PTMP). see more below ...

Land may be in abundance on the mainland, but the island is the preferred choice, because in terms of value, it has always fetched higher prices. Having the three islands next to the Bayan Lepas Industrial Zone, the Penang International Airport and the Second Penang Bridge is the right thing to do.

Malaysia’s E&E industry is centred in Bayan Lepas, contributing RM120bil in exports, and these islands will help boost this crucial sector further, and encourage Penang to reinvent itself as a digital economy.

A properly planned transport link is long overdue. For years, I have made it a point to return to Penang for the reunion dinner days ahead of Chinese New Year, simply because I can no longer handle the stress of traffic jams on the island.

The final straw was when a jaga kereta boy demanded RM10 for my car, which was parked near Kek Lok Si temple where my wife used to live, because “you have a KL number plate” and “you are not a Penangite”.

Although Penang was the first state in Malaya to introduce a tram system (in the 1880s), the streets there are simply too narrow. So, while it sounds good in theory, it’s just not practical.

Going above the streets – like what modern rails do – is the right thing, and such an “elevated” move will remove the chaos each time it rains and transforms George Town into a huge canal.

The bottom line is, the E&E sector is stagnant, tourism earnings have reduced, Penang isn’t on the global business map, traffic congestion is horrendous, housing on the island is unsustainable and worse, the best brains will not come to Penang for career advancement.

You can have investments, but it doesn’t make sense if the best talents are not attracted to work in the state. There is only so much char koay teow one can eat in Penang.

It’s no good for Penang to be a pick for expatriate retirees. Instead, we need it to be a choice for the workforce, both Malaysian and foreign, from the knowledge economy, supporting services, manufacturing and renewed tourism industries. Penang must move up the value chain to reclaim its lost stature of “Penang Leads”.

By Wong Chun Wai - comment The Star

RM70bil will be flowing in from here 

 

Penang can expect to raise over RM70bil through projects

This is the plan – set up three man-made islands under the Penang South Reclamation Scheme and then, rake in enough to finance the state’s economic development for the next 30 years. 

GEORGE TOWN: Over RM70bil is expected to be raised from the three man-made islands under the Penang South Reclamation Scheme (PSR), enough to spearhead the state’s economic development for the next 30 years.

Sources told The Star that out of the more than RM70bil, about RM46bil would be used for the construction of the RM9bil light rail transit (LRT) line, the RM9.6bil Pan Island Link 1 (PIL 1), and other supporting infrastructure projects under the Penang Transport Master Plan (PTMP). According to a prominent Penang developer, the present price of industrial land on the island would be around RM70-RM200psf, depending on its status as leasehold or freehold land. Because the industrial lots on the island are freehold land, the pricing is around RM20psf.

“When the reclamation of the islands starts in 2020, there could be at a 10% appreciation. The island will be sold via an open tender process,” he said.

It will take at least six years for the reclamation, which will be done in stages, to be completed.

It was previously reported that sources had said that about 75% of the three islands were for sale, with some 30% of the enquiries received so far being for industrial land.

When contacted, a local manufacturing company said it would be interested to bid for the lots once an open tender was called.

“There’s currently a slowdown in the manufacturing sector. When the reclamation is done, the global economy should also see a recovery,” said its spokesman.

The National Physical Planning Council is expected to approve the reclamation of the three islands, totalling 1,821ha (4,500acres), before the end of this month.

The SRS Consortium – a 60:20:20 joint venture involving Gamuda Bhd, Loh Phoy Yen Holdings Sdn Bhd and Ideal Property Development Sdn Bhd – is the project delivery partner, appointed by the state government to oversee the implementation of the LRT, PIL 1 and PSR scheme, components of the PTMP.

It was also earlier reported that the tender to reclaim the island would be out in the third quarter of this year.

Island A will house industrial projects – which lots will be developed for sale to foreign and local investors to generate funds for PTMP – and residential development, while Island B will accommodate the state administrative offices and commercial properties.

Residential properties will be developed on Island C.

The LRT is an integrated transport solution comprising a monorail link, cable cars and water taxis to solve traffic congestion in Penang while the 19.5km PIL highway project connects Gurney Drive to the Penang International Airport.

The LRT begins from Komtar in the northeast corner of the island and passes through Jelutong, Gelugor, Bayan Lepas and the airport before ending at Island B.  - The Star


Read more  

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Penang gets green light to reclaim three islands -
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Penang's PIL and LRT to go ahead - Nation

New line: The proposed LRT route from Komtar to the three man-made islands in Batu Maung in a map provided by the state government.

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Middle class malady

Struggling and frustrated: Most aid goes to the B40, leaving the M40 feeling adrift and on their own.

 The economic future of the country looks scary, and if the young bankrupts and imminent retires are not atteended to soon, we could be in truly tough times.

THE economy is the most talked about topic among Malaysians, with issues including the increasing cost of living, shrinking ringgit, continuing weak economy and sadly, the endless politicking.

While attention has been cast on the Bottom 40, or the group known as B40, as they make up the lowest earners, the middle class, the Middle 40, or M40, shouldn’t be forgotten either.

Malaysians are categorised into three different income groups: Top 20% (T20), Middle 40% (M40), and Bottom 40% (B40).

To be in T20, a household’s monthly income should at least be RM13,148, while the M40 and B40 groups have raised their bars to RM6,275 and RM3,000 respectively.

We don’t need a survey to know that the people in the bottom half of M40 and B40 are barely making ends meet and struggling to maintain a decent lifestyle.

At the lowest end, 70% of these poorest are the bumiputeras, while the rest are Chinese and Indians, which proves the poor comprises all races.

The M40 – which forms 40% of Malaysia’s population – includes mostly wage earners, in both public and private sectors.

The bulk of their income goes to paying the car and housing loans, rent, and groceries. After deductions from the essential bills, such as phone, Astro, petrol, and children’s education, there’s barely anything left to save.

It’s harder for those who need to take care of their ageing parents, a noble endeavour which naturally includes settling healthcare bills, and even expenses for care takers.

And since the majority of the M40 lives in the cities, the household income of RM6,275 is almost negligible, and they can hardly be faulted for feeling that their standard of income has dipped drastically while the cost of living has increased.

The M40 essentially comprises the most frustrated lot since most aid goes to the B40, leaving the former feeling adrift and on their own.

Most of them don’t have alternative revenue streams besides their monthly wages, and they are dependent on corporate performances, so the overall economy is key.

They are unlikely to care that the Department of Statistics’ Household Income and Basic Amenities survey indicated that the mean income of households in 2016 reached RM6,958, a 6.2% annual appreciation from RM6,141 in 2014.

The survey also revealed the incidences of poverty decreased from 0.6% of the population in 2014 to 0.4% in 2016. Compared with the population of 30.7 million in 2014 and 31.7 million in 2016 (from the same portal), the numbers also decreased from 184,200 to 126,800 from 2014 to 2016.

The 11th Malaysia Plan (2016 – 2020) Mid-Term Review stated that the mean household income is predicted to reach RM8,960 by 2020.

The term “middle class” has different meaning and measurement to economists and academics from those classified in the M40 category.

As one analyst rightly pointed out, a household of four living in the Klang Valley with an income of RM4,000 per month, would be classified as urban poor due to the higher cost of living. However, that income would be comfortable to live in Pasir Mas or even Taiping.

It won’t be wrong to suggest that at RM4,000, that’s only enough for a single person to live in the Klang Valley.

We need to understand that the key people driving the country’s economy are the middle-income and top earners, many of whom feel they have fallen between the cracks of progress.

At every Budget, they seem to be the forgotten Malaysians, and each year, they hope for lower level tax bands for themselves, so they can have extra disposable income, but that never happens.

Khazanah Research Institute’s (KRI) State of Households 2018 revealed a steady increase in the income gaps between the Top 20% (T20), M40 and B40 groups since the 1970s. In 2000, the estimated real mean household income differences between T20 and M40, M40 and B40, and T20 and B40, were RM6,000, RM2,000 and RM8,000 respectively.

By 2016, however, it increased to RM9,000, RM4,000 and RM13,000.

These figures show that T20 households are gaining wealth at a faster rate than the rest.

Despite the improvement in mean household income figures, the gap between income groups continues to rise, and the survey added that “the escalating cost of living has put financial pressure on the M40 and B40 groups.”

“With income growing at a slower pace compared with the cost of living, the M40 and B40 groups are experiencing an abridged disposable income, which could be detrimental to future consumption, activity, emergency or debt services.”

Combining data from the Department of Statistics’ Household Income survey (2016 and 2014) and KRI household reports (concerning population increase), it’s clear that the percentage of households living under the 60% median grew from 2014 to 2016 by 41.8% to 43.5%, with an estimated 2.8 million households in 2014 and three million households in 2016.

The increase also suggests that more M40 households have slipped into the B40 category – and this is where the alarm bells go off.

In the 11th Malaysia Plan (2016-2020), targeted subsidies, cash handouts, healthcare benefits, education, along with employment and entrepreneurship opportunities, include the usual strategies to ease the burden of B40 households.

One of the major concerns among the young M40 family is that they can no longer afford to buy a “middle class” home, and the difficulties have been aggravated by how they need to live relatively close to their workplace.

As much as the government expects housing developers to build affordable houses, let’s not forget that most of these developers have bought land at premium prices, and as private concerns, they still need to make profits.

But homes in Malaysia have become “seriously unaffordable” by international standards, and there’s no need to point fingers at developers when the governments have basically failed to do the job, unlike Singapore’s Housing Development Board (HDB), which builds and upkeeps flats that don’t degenerate into urban slums.

Their HDB flats are so well-designed and maintained that they can pass off as high-end apartments by Malaysian standards.

Bank Negara reported that from 2007 to 2016, house prices grew by 9.8% while household income only increased by 8.3%. While developers blamed rising construction costs – including labour outlay – and stagnant salaries for the increase in house prices, all this means nothing to the M40, because ultimately, they still can’t buy houses.

The rent-to-own scheme which the B40 has enjoyed from the low cost houses, needs to be extended to the M40, so they, too, can enjoy the same benefits, and while such help is expected to come via PRIMA Corp, a federal government-linked developer which supposedly caters for M40, it’s still falling behind schedule.

While it could be easy for the M40 to request more support, including allowances for school-going children, and even free student passes for public transport, it’s time that financial literacy be introduced at school level. A study by S&P Global Literacy Financial in 2014 showed that the financial literacy rate in Malaysia is only at 36%, compared with 59% in developed countries.

“The low financial literacy rate is among the factors that has contributed towards high levels of debt – including worrying bankruptcy problems – among the youth.

“Between 2013 and 2017, a total of 100,610 Malaysians were declared bankrupt, of which 60% were between 18 and 44 years old,” according to Finance Minister Lim Guan Eng.

Apart from the youth, Lim noted that older Malaysians are also facing serious financial challenges, particularly when it comes to their retirement.

Based on estimates by the Employees Provident Fund (EPF), he said that as of 2019, an individual requires savings of at least RM240,000 by age 55 to retire comfortably.

However, based on the EPF 2017 Report, active contributors aged 54, have average savings of only RM214,000 in their accounts.

“What is even more worrying is that two-thirds of contributors aged 54, only have RM50,000 and below in their EPF accounts in 2015,” he reportedly said, adding that this was well below the recommended amount for savings.

Lim noted tha the low amount of savings was inadequate and estimated it to run out within five years of retirement, although the average life-span of Malaysians is 75.

Basically, the B40, M40 and, our young and old Malaysians, are all either grappling with financial problems, don’t know how to handle their money, or don’t even earn enough in the first place.

This is unlike the situation for the T20, which has disposable income where their wealth encourages investment and wealth creation, the main principles of the T20 group.

But of all people, politicians should know the importance of the people wanting to have money in their pockets and feeling well heeled.

Easier loan payments, good refinancing packages and transport allowances should be considered to help the M40.

If the market continues to slide, there will be many unhappy people, and the resentment will translate to protest votes. For them, it simply means the government is doing a lousy job, and they couldn’t care less for the reasons, however valid they may be.

Wong Chun Wai

Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 27 years in various capacities and roles. He is now 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.

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