Ugly business of Pilipinos kidnapping in Malaysia

It is understandable that family members of a hostage would want to see their loved one released as quick as possible but paying the ransom only encourages the crime to flourish. 
 
Last week, the whisper among the intelligence operatives in Sabah is that the asking price for the Taiwanese tourist kidnapped from Pom Pom island is RM10mil.

When I heard that was the amount demanded for the release of 58-year-old Chang An Wei abducted at gunpoint after her 57-year-old husband Hsu Li Min was shot dead by Filipino gunmen in the exclusive island resort off Semporna town on Nov 15, I worried about the consequences of paying for her freedom.

I tweeted: “If ransom is paid for Taiwanese hostage abducted from Pom Pom, $$$ will be invested into powerful boats & guns. Expect more kidnappings.”

Intelligence operatives also speculated that Chang was on the way to Jolo or was already on the island, the kidnap capital of the Philippines.

Kidnapping is big business in Jolo.

Last year, in Zamboanga City in southern Philippines, I had a chat with Lee Peng Wee. The tycoon made his money through seaweed grown mostly in kidnap-prone Philippines provinces such as Sulu and Tawi Tawi.

He was instrumental in securing the release of nine Sabahans kidnapped in Sipadan and held in Jolo in 2000. The Sipadan kidnapping was big international news – 21 hostages were abducted, including 10 tourists from Europe and the Middle East.

At his residence where 12 years ago he and Malaysian negotiators strategised on buying the Malaysians’ freedom, I asked him how the situation in Jolo was.

“It is the same. They kidnap two and release one. They kidnap three and release two,” he said, referring to Filipinos abducted in southern Philippines.

“Kidnapping is easy money. These people do not have a steady livelihood.”

The typical modus operandi is: kidnap-for-ransom group will abduct rich individuals in southern Philippines and they then sell the human commodity to bandits (some using the name of Abu Sayyaf) in Jolo. The island is so lawless that it is a “holding pen” for hostages.

Many in Malaysia assume that the Filipino kidnap-for-ransom group only targeted the east coast of Sabah. Wrong.

On Tuesday, JV Rufino, the Director for Mobile for the Inquirer Group in the Philippines, tweeted a link to a Philippines Daily Inquirer story headlined, “Military: Abu Sayyaf behind Sulu treasurer’s abduction”.

In Jolo, Sulu provincial treasurer Jesus Cabelin was allegedly taken by a group led by Julli Ikit and Ninok Sappari, who is a member of the Abu Sayyaf, according to the Philippines Daily Inquirer.

It reported that Sappari was “linked to several incidents of abduction in the island-province, including the March 2012 disappearance of Indian national Viju Kolara Veetil and six health workers of the Autonomous Region in Muslim Mindanao”.

“The victims were later freed after ransom had been allegedly paid,” the report continued.

Cabelin was the fourth kidnap victim in Jolo since Oct 22. Kidnapping is common in the Philippines especially in Jolo and nearby provinces.

However, it is rare for these groups to operate outside of Filipino waters. If you count the numbers of actual kidnappings at resorts in the east coast of Sabah, there are only three – Sipadan in 2000, Padanan in 2000 and Pom Pom in 2013.

(This count does not include kidnapping cases such as the abduction of the cousins who owned a bird’s nest farm in Lahad Datu or seaweed farm owners in Semporna).

One way to stop kidnappings by Filipino armed groups inside Malaysian waters is to stop paying for ransom.

Ransom was paid for all the 21 Sipadan hostages except Filipino cook Roland Ullah who “walked out” of captivity in 2003.

The then Libyan leader Muammar Gaddafi bankrolled the payment for European and Filipina hostages and Malaysian businessmen raised the money to free the Sabahans. (The ransom for the first hostage – a Malaysian – released was paid for by a Filipino tycoon who described to me the payment as “small change”.)

At the back of my mind during the Sipadan hostage crisis, I was worried that ransom payment would only encourage kidnap-for-ransom groups to launch more kidnappings in my home state of Sabah.

Nevertheless, if you were a family member of a hostage, you would understand that not paying ransom is an option you would not consider.

I’ve met the Malaysian hostages twice while they were held by the Abu Sayyaf and I’ve spoken to almost all their family members, so I understand the agony they faced.

The negotiation for the release of the hostages dragged until Aug 20, 2000, when the last of three abducted Malaysians were released. Less than a month later, Filipino gunmen raided Padanan island and abducted three Malaysians on Sept 10.

This time the mood from the top was “no negotiation” with the kidnappers. Kuala Lumpur had learnt its lesson – paying ransom for hostages only encouraged the crime to flourish.

The then Philippines President Joseph Estrada ordered a military offensive on the Padanan kidnappers in Jolo. The three Malaysians were released after 46 days in captivity following a military operation.

That was the last raid by Filipino gunmen on a Malaysian island until the killing and kidnapping in Pom Pom.
Paying for Chang’s ransom will only encourage more kidnappings in Malaysian waters.

Contributed by One Man's Meat Philip Golingai

China sets up air defence zone over East China Sea, a strategic move

The Chinese government on Saturday issued a statement on establishing the East China Sea Air Defense Identification Zone.

The move, however, provoked anger in Japan, which accused China of "one-sidedly" setting up the zone that covers the disputed Diaoyu islands, and described the zone as "totally unacceptable."

Having no intention to generate tensions, China's move is to uphold its own legitimate rights and safeguard what has always been its own.

As pointed out by many military experts, the establishment of the air zone is a necessary, rightful and totally legitimate measure taken by China in protecting its sovereignty and providing air security.

Actually, the establishment of the air zone is not only perfectly legitimate, but also in line with current international practice.

An air defense identification zone is established by a maritime nation to guard against potential air threats. Since the 1950s, more than 20 countries, including the United States, Australia, Germany and Japan itself, have successively established such zones.

China's Defense Ministry spokesman Yang Yujun has stressed that the zone "has no particular target and will not affect the freedom of flight in relevant airspace."

Since the zone is both in line with the UN Charter and in respect of relevant international laws and customs, China has every right to decide on its own whether to set up such zones, without getting permission from any other countries.

And Japan should know better than to continue its overreaction and learn to accept the "unacceptable."

On Saturday, US Secretary of State John Kerry also voiced concerns over the zone, fearing it might "constitute an attempt to change the status quo in the East China Sea," and increase tensions and risks in the region.

But is it China to blame for upsetting the status quo over the islands?

The status quo of the Diaoyu islands, which had lasted for decades under the principle of shelving the dispute, has already been broken more than one year ago when the Japanese government launched a unilateral move to "purchase" and "nationalize" the islands.

The farce of "buying" the Chinese territories is a sign of Japan's expanding nationalism and growing belligerence, which should be identified as the real danger in the region.

Instead of "increasing tensions and creating risks," the setup of China's air zone could contribute much to regional peace and security by curbing the increasing rampancy of Japan's right-wing forces, as well as the continuous and dangerous provocations of Japanese politicians, which even Washington should be vigilant against.

The White House has repeatedly said that the United States does not take a position on territorial disputes between China and Japan, a neutral stance the Chinese government has appreciated.

But keeping a blind eye to the dangerous tendency in Japan could prove to be risky and might even jeopardize the US national interests.

Air defense identification zone a strategic decision: experts

The establishment of the East China Sea Air Defense Identification Zone is a strategic decision in accordance with China's current national security situation, experts said.

"Setting up the air defense identification zone can effectively safeguard national sovereignty and security," said Zhang Junshe, a military expert, adding that the move conforms to the fundamental spirit and principle of international law.

The Chinese government issued a statement on Saturday morning on establishing the East China Sea Air Defense Identification Zone. It also issued an announcement on the aircraft identification rules and a diagram for the zone.

According to the announcement, China will take timely measures to deal with air threats and unidentified flying objects from the sea, including identification, monitoring, control and disposition.

"The move also accords with common international practices as the United States and Canada took the lead around the world in setting up such zones starting in the 1950s," said Xing Hongbo, a military and legal expert, adding that more than 20 countries have set up air defense identification zones since then.

"Various aircraft with high altitude and high-speed flying capabilities have been broadly used around the world with the development of aviation technology, and it's hard for China to identify an unidentified flying object and adopt countermeasures immediately," said Meng Xiangqing, a military expert.

The establishment of the zone can help set aside early warning time to ascertain an aircraft's purpose and attributes and adopt measures to protect air defense security, Meng said. - Xinhua

Typhoon-hit Philippines: China Sends Hospital Ship, Others jostling for powers and dominance as Philippines welcomes former invaders

 

(Reuters) Following Typhoon Haiyan's devastating effect on the Philippines, the Chinese government is sending its hospital ship, the "Peace Ark," to aid displaced victims. 

 

Members of the medical crew stand at the inpatient room inside their Chinese Navy hospital ship Peace Ark before its departure from a navy base in Zhoushan, east of Shanghai, China, on a relief mission to the Philippines, on Thursday, Nov 21, 2013. Military flags fluttered in the wind aboard China's navy hospital ship Peace Ark as it began a goodwill mission to the Philippines on Thursday, nearly two weeks after the Southeast Asian country was struck by a devastating typhoon that killed more than 4,000 people. -- PHOTO: AP

In response to Typhoon Haiyan, which has claimed the lives of over 4,000 people, and has left millions homeless in the Philippines, China’s Ministry of Foreign Affairs announced that the country will be sending a hospital ship to aid victims who have lost homes and family members. The so-called “Peace Ark” is expected to set sail on Thursday, however, 16 members of the Red Cross Society of China were dispatched on Wednesday to areas with the largest devastation due to weather conditions.

“The 51-member emergency medical team sent by the Chinese government will set off within the next few days,” Foreign Ministry Representative Hong Lei said during a press conference on Wednesday. “The Red Cross Society of China will send an international rescue team to the disaster-hit areas in two groups. China will also dispatch the naval hospital ship, "Peace Ark," to join the relief effort in the disaster-hit areas.”

The Chinese government has been subject to heavy criticism for a lack luster effort to help typhoon victims in the aftermath of the Nov. 8 disaster. The relationship between China and the Philippines has been strained following territorial disputes over the South China Sea, The New York Times reported. China offered the services of its “state-of-the-art hospital ship” on Monday, which the Filipino Health Ministry graciously accepted.

With one of the largest economies in the world, second only to the United States, China announced that it would be donating $200,000 when the disaster initially occurred. The country recently changed its donation to $1.6 million, following an outcry from both international and domestic entities. Publications that usually support the communist state, such as the government owned People’s Daily, and its publishing asset the Global Times, have come out in protest against Beijing’s lethargic response.

“China has been following closely the typhoon disaster in the Philippines. It is reported that the disaster has injured about 20,000 people and left the disaster-hit areas lacking in doctors and medicine,” Lei added. “We have got the confirmation after coordinating with the Philippines and will send relief workers to the disaster-hit areas to provide humanitarian medical assistance in the spirit of healing the wounded and rescuing the dying. It reflects the Chinese people's goodwill toward the Philippine people.”

Contributed By Justin Caba

Philippine aid controversy shows powers jostling for regional dominance

Haiyan, the strongest typhoon to make landfall in recorded history, has killed over 3,976 people in the Philippines. But from the start, the size of the rescue package sent to Haiyan victims has been seen as a race.

Besides the initial emergency fund of $100,000 and the $100,000 in aid offered by the Red Cross Society of China, the Ministry of Foreign Affairs of China has pledged another 10 million yuan ($1.63 million) of rescue material to Manila on Thursday.

Washington is not shy to promote its rescue efforts to one of its important allies in Southeast Asia, with the aircraft carrier George Washington dispatched and $20 million offered, plus marines and sailors to distribute food and medicine. Japan also sent a high-profile rescue team including warships and 1,180 Self-Defense Forces members. Both countries have extensive experience in disaster relief work.

Rescue effort of Haiyan has particular political concern beside natural sympathy to the victims. Attention to the disaster relief to the typhoon stricken Philippines has reflected the rivalry among major powers for the regional dominant role.

Since Washington's pivot to the Asia-Pacific region in 2011, the South China Sea, among other areas, has witnessed escalating tension.

Alongside China's growing regional influence, Washington has to stress its ability to provide security to its allies to secure its influence in Southeast Asia. It becomes more urgent after President Barack Obama missed two important regional meetings in October and questions were raised about US commitment to its traditional allies.

Though on a humanitarian aid mission, the arrival of aircraft carrier George Washington has a strong symbolic meaning, as it signals US military presence and deployment ability in this strategically important region.

Japan, increasingly isolated in East Asia, is taking rescue efforts to strengthen its diplomacy in Southeast Asia, which Prime Minister Shinzo Abe has emphasized since the beginning of his current term. It is also a way for Japan to demonstrate its status as a regional power.

China's aid to the Philippines was criticized as "meager" and not matching its economic power. In the future, China will face increasing pressure to take more responsibilities in regional affairs.

For both the government and the public, there is a learning curve. Foreign ministry spokesperson Qin Gang remarked on Thursday that China's rescue aid to the Philippines is not a "one-time deal" and will correspond to the post-disaster situation.

Domestically, the Chinese public is tilting against sending rescue aid overseas. An online survey conducted by Sina News, following Chinese government's announcement of further aid, indicated that more than 65.3 percent of the people taking the poll believed the additional aid amount was more than enough, while 9.4 percent thought the figure was less than appropriate.

Some hold that sending aid to foreign countries is premature for a country still plagued by its own development problems. There are also voices opposing political factor affecting humanitarian support.

However, the case with Manila, a staunching ally of Washington's pivot policy, is more complicated not just because of the lasting row over the disputed Huangyan Island.

The Philippine government's incompetent performance in the hostage crisis in 2010 which killed eight Hong Kong tourists, the Aquino administration's stubborn refusal to apologize and failure to deliver proper compensation for that incident, and the Philippine Coast Guard shooting dead a Taiwanese fisherman this May all soured the Chinese public's perception toward their neighbor in the south.

Sending military force for overseas humanitarian aid is still a relatively new mission for China. The security dilemmas sparked by the expanding military footprint is a concern for Chinese authorities.

China's rise will be bound to be a bumpy process, and the controversy surrounding disaster aid to the Philippines attests to that.

Contributed By Guan Yan
The author is a commentator with the Global Times

Japanese troops welcomed back in typhoon-hit Philippines

 

Japanese troops welcomed back in typhoon-hit Philippines

Tacloban (Philippines) (AFP) - More than 1,000 Japanese troops were offered a warm welcome in the Philippines Friday as they prepared to launch relief operations across typhoon-devastated islands that were brutally occupied by Japan seven decades ago.

The troops were aboard three vessels that arrived at the central Philippine port of Cebu on Thursday night, an official at the Japanese embassy said, in what is the biggest overseas deployment of Japan's military since its defeat in World War II.

They will join a huge international relief effort to help survivors of Super Typhoon Haiyan, which flattened dozens of towns through the central Philippines on November 8, leaving at least 5,500 dead or missing.

"We have already delivered small amounts of aid but the main effort will begin after a meeting with Philippine forces today," Takashi Inoue, deputy director of public affairs with the Japanese embassy in Manila, told AFP.

Japan's contribution to the humanitarian effort comes as a newly-confident Tokyo looks to make its mark again on the world order, after decades in which the idea of its troops on foreign soil was complete anathema.

In many parts of Asia, memories linger of the brutality of invading Japanese soldiers prosecuting an expansionist romp through the region in the name of the emperor.

In a twist of historic irony, the Japanese troops are returning to areas of the Philippines that saw Japan lose one of history's biggest naval battles to the US-led Allies.

Eulalia Macaya, 74, who survived World War II and the typhoon, said she remembered being terrified by Japanese troops as a little girl.

"We were hiding in holes dug under the floor of our homes," she recalled. "The Japanese soldiers were patrolling but we couldn't see much of them. We could only see their boots. We were so afraid."

But Macaya, who was waiting for treatment at a temporary field clinic set up by the Japanese government in Tacloban, the typhoon-ruined capital of Leyte, said she was very pleased the former occupier was back.

"I don't hold any grudges anymore. There's no more bad blood between us," she said.

Tente Quintero, 72, a former vice mayor of Tacloban, said that at a time of dispute with an increasingly emboldened China over the ownership of South China Sea islands, Filipinos now saw the Japanese as friends and allies.

He declared himself "happy" there were Japanese boots back on Philippines soil.

"There's nothing like two allies living in harmony with each other," he said.

Beatrice Bisquera, 91, said the devastation and hardships Haiyan had brought were worse than anything Filipinos suffered under Japanese military rule.

"During the Japanese occupation we just hid in the mountains. Now, there's nowhere to hide," she told AFP.

General Roy Deveraturda, Commanding General of the Philippine armed forces Central Command, said the Philippines was thankful for the Japanese typhoon support, and past animosities were no longer a concern.
"This is a different world. We have seen the generosity of their donation," he told AFP.

"They have already showed remorse. Their help is most welcome."

For some Japanese relief workers already on the ground in Leyte, their country's participation in the international relief effort alongside the United States is an indication of Japan's very different relationship with the outside world.

"Nearly 70 years ago, we were enemies. Now we're friends," said Joji Tomioka, a doctor helping to coordinate a civilian medical team.

"We cannot forget the past, but we must learn from history so that we will not do the same thing again."

The new Beijing beckons

 

Customers with bags containing first day purchases from a H&M fashion collection designed by French fashion designer Isabel Marant at a window display at a H&M store branch in Beijing, China. — EPA

Here, you are surrounded by optimistic and enthusiastic young people with the zeal to do well not only in China, but in the globalised world.

I JUST took a short trip to Beijing to attend a conference on women. It has been seven years since my last trip and 28 years since my first. In 1985, China was gingerly opening up to the world. People still wore blue Mao jackets and rode around mostly on bicycles. There were few hotels of the standard we were used to in Malaysia.

Today, so little of that Beijing remains. Tall glittery skyscrapers abound. Shopping malls carry every type of international luxury brand and people dressed as if they had just walked out of the pages of Vogue China that just celebrated its 100th edition by commissioning the photographer Mario Testino to shoot the entire issue.

Sitting at the French bakery chain Comptoirs du France, I saw a fashionable young couple walk by with their miniature dog. The dog wore a Chanel sweater....

When I arrived at the vast modern Beijing Capital airport, a young volunteer from the conference received me. She was a graduate student at Beijing University, spoke perfect English and was extremely efficient in getting me to my hotel and comfortably settled.

In fact, throughout the conference, a whole bevy of eager young volunteers shepherded us through the programme with remarkable efficiency, politeness and charm. Whenever a special request was made, they followed through until it was fulfilled.

I also met some impressive young female entrepreneurs and corporate leaders. There is now a generation of young Chinese who had been educated abroad and who are returning to start their own businesses or head companies.

The head of McKinsey in China is a Beijing-born woman as is the head of SK China, South Korea’s third largest company. Additionally, young women are using their cosmopolitan education to start businesses. The organiser of the conference was a 27-year-old former chess champion born in Chengdu.

Another 27-year-old has combined the experience of her education at both a Swiss finishing school and Harvard Business School to start a business giving etiquette lessons to Chinese wanting to venture out into the world beyond their own country. They have an acute sense that to succeed in this globalised world, they need to discard provincial habits and tastes.

The most impressive person I met, however, was Zhang, a taxi driver. I hopped into his taxi at my hotel and asked him to take me to Panjiayuan, the flea market. Taxis in Beijing are very clean and neat except that they tend to smell of cigarettes. But they are safe and as long as you get someone to explain to the taxi driver where you want to go in Mandarin, you will get there in one piece.

So I was not expecting Zhang to turn round and wish me a good afternoon. It turned out Zhang spoke pretty decent English. When I asked him why, he said he decided to learn it because he wanted to communicate with his international passengers and he loved to practise with them.

Indeed, Zhang proved to be a gem, not only did he take me to the flea market and wait until I was done but he also took me to find some other items I was looking for, drove me around Tiananmen Square so I could take photos and then took me back to my hotel, all the while chatting merrily in English.

(Some were however a bit cynical about Zhang, that he should by coincidence have picked me up that day. Apparently, there are no such coincidences in China.)

China does still have many problems, Beijing’s terrible pollution being just one. And no doubt there are huge gaps between the cities and the countryside. But there are enough eager young educated and entrepreneurial Chinese today ready to take the lead in almost everything, both domestically and perhaps even internationally. The socialist slogans are now found only on posters you can buy at the flea market.

For a few days, I had a break from home news because there is no Facebook or Twitter in China. It was nice to be with optimistic and enthusiastic young people wanting to do so much, instead of the angst-filled navel-gazing we indulge in back home and the thousands of ways we find to bring people down.

We seem to think that our country is special when we should be worrying about how this giant country only a few hours away is poised to leave us in the dust, despite our headstart.

I did meet one young Malaysian currently working in Shanghai who wants to come home to start a new IT enterprise. It was so refreshing to meet someone who is still eager to invest in his own country. I just hope that our daily nonsense does not crush his eagerness.

Contributed by Marina Mahathir

> The views expressed are entirely the writer’s own.

Bank Negara Malaysia new ruling to curb interest capitalisation and developer interest bearing housing loan schemes

Fee ling the heat: Although the guidelines on the prohibition of the DIBS is not surprising, the new rule on using the net selling price to determine the loan- to-value ratio is a negative surprise to some analysts.

PETALING JAYA: A new circular from the central bank that took effect last Friday will pile more pressure on an already hard-hit property sector, even if its merits are likely to be felt in the long-term, analysts and industry executives said.

In a bid to make the property market sustainable, the new rules have put the brakes on interest capitalisation schemes (ICS) and the developer interest-bearing scheme (DIBS).

It also calls for the use of the net selling price of a property as the benchmark for obtaining bank loans, which raises the amount to be paid upfront.

Alliance Research’s banking analyst Cheah King Yoong said the measures were “more onerous” than anticipated and posed downside risks to his 9% loan growth estimate for the banking sector next year.

“Although the guidelines on the prohibition of the DIBS was not a surprise, the new rule on using the net selling price to determine the loan-to-value (LTV) ratio is a negative surprise to us.

“While it is difficult to gauge the impact on banks, the fact that this new rule applies to all property financing, including first-time home buyers, means that property buyers’ affordability will be affected, and this will lead to lower property loan growth,” Cheah said in a report yesterday.

“We believe the latest policies illustrate the sheer determination of the authorities to contain the growth of household debt.

“These measures, together with potential rate hikes in 2014, fiscal tightening by the federal government and subsidy rationalisation next year, could further drag on loan growth in the retail segment, temporarily leading to a rise in credit costs, and dampen investor sentiment on the banking sector,” he added.

The circular prohibits financial institutions from granting end-financing facilities to individuals or non-individuals for the purchase of property offered under an ICS, including the DIBS.

Financial institutions are also barred from granting a bridging facility to finance a property development that offers ICS.

According to Alliance Research’s Cheah, this effectively removes any alternative incentives that developers might concoct to replace the DIBS.

“Nonetheless, our channel checks show that for the banking groups under our coverage, property loans with the DIBS only made up 1% to 3% of their outstanding mortgages,” he said.

Affin Bank is the exception, with some 7% of its mortgage loanbook comprising loans tied to the DIBS.

“Given that property loans with the DIBS are immaterial to overall outstanding mortgage loans as well as new mortgage loans approved, we do not expect the restrictions to have a significant impact on the banking sector,” Cheah said.

Public Bank has the highest exposure to housing loans at 56% of its gross loans, followed by Alliance Bank with 55% and Hong Leong Bank, 46%, company data showed.

Another key item on the circular requires banks to calculate the LTV ratio based on the net price of a property instead of its gross price.

To illustrate, a property with a list price of RM1mil, rebate of 5% and 90% financing would incur a down payment of RM50,000 after discount.

Under the new regime, the down payment increases to RM95,000 because the 90% loan will be computed using the discounted price tag of RM950,000.

While property executives expect a slowdown in sales, they believe that genuine buyers will remain undeterred.

Mah Sing Group Bhd group managing director and CEO Tan Sri Leong Hoy Kum told StarBiz via email that demand for properties would continue to be robust, especially among those buying to own or for long-term rental income.

“There is still a large supply-demand gap as supply growth for properties has been on a decreasing trend since 2003, with Malaysia’s supply growth in the second quarter of this year at only 0.8%.

“The fundamentals driving the property market’s growth in recent years have not changed, for example a younger population leading to new household formation, a rising middle-income group, the supply-demand gap and stable employment.

“Initiatives in Budget 2014 may remove the speculative element, but not the fundamentals,” he said.

Leong noted that the lending environment was still conducive, with low interest rates and banks offering BLR minus 2.4%, from BLR minus 2.1%-2.2% a year ago.

Mah Sing had stopped offering the DIBS for most of its launches since the start of the year. None of its projects in Iskandar Malaysia feature the DIBS.

-  Contributed by John Loh The Star./Asia News Network

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