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Thursday, April 7, 2016

Lighthouse in South China Sea is operating now

The lighthouse on Zhubi Reef in the South China Sea is now in use. XING GUANGLI / XINHUA


China turns on lighthouse on man-made island

China's Ministry of Transport on Tuesday held a completion ceremony for the construction of a lighthouse on Zhubi Reef, marking the start of its operation.

Beijing rebuffed suspicion on Wednesday over the operation of a lighthouse on an island in the South China Sea, saying it is a public service that China is providing to the region.

"China has been committed to providing more public products and services to navigation in the South China Sea. It is beneficial to the trade of coastal countries in the region and even some countries outside the region," Foreign Ministry spokesman Lu Kang told a regular news briefing.

The Ministry of Transport held a completion ceremony on Tuesday for construction of the lighthouse on Zhubi Reef, marking the start of the lighthouse's operation.

Construction of the 55-meter-high lighthouse, which has a lantern of 4.5 meters in diameter on top and rotating lights inside, began in October. The lighthouse is monitored via a remote control terminal.

The lighthouse emits white light in the nighttime, with a range of 22 nautical miles and a glow cycle of five seconds.

Zheng Heping, deputy head of the Maritime Safety Administration, said the automatic identification system and other equipment inside the lighthouse can provide efficient navigation services to ships, such as positioning reference, route guidance and navigation safety information.

To improve maritime emergency responses in the area, the Ministry of Transport started construction of large, multifunctional lighthouses on Huayang Reef, Chigua Reef and Zhubi Reef last year. The two other lighthouses are already in use.

"The Zhubi lighthouse will further enhance the capability to ensure maritime security in the South China Sea," Zheng said.

"The lighthouse is a very advanced one with multiple functions," said Zhang Xuegang, an expert on Southeast Asian studies at the China Institutes of Contemporary International Relations.

He said the lighthouse will provide information about hydrology and weather, including typhoon warnings, to passing vessels.

"It can also provide waterway information, such as which channels are busy," he added.

He suggested having rescue personnel live on the island.

Li Jinming, a professor of maritime policy and law at Xiamen University, said the lighthouses that China has built in the South China Sea are a testimony to its efforts to safeguard navigation freedom and security.

"The US, Japan and the Philippines have challenged China on that. And the glowing lighthouse is a silent answer."

Lighthouses are part of China's efforts to perform its responsibilities in maritime search and rescue, response to natural disasters and marine environmental protection, the Transport Ministry has said.

By Li Xiaokun China Daily/Xinhua

Wednesday, April 6, 2016

Oil Prices: What’s Behind the Drop? Simple Economics

    Some think it will be years before oil returns to $90 or $100 a barrel, a price that was pretty much the norm over the last decade. Credit Michael Stravato for The New York Times

The oil industry, with its history of booms and busts, is in its deepest downturn since the 1990s, if not earlier.

Earnings are down for companies that made record profits in recent years, leading them to decommission more than two-thirds of their rigs and sharply cut investment in exploration and production. Scores of companies have gone bankrupt and an estimated  250,000 oil workers have lost their jobs.

The cause is the plunging price of a barrel of oil, which has fallen more than 70 percent since June 2014.

Prices recovered a few times over the last year, but the cost of a barrel of oil has already sunk this year to levels not seen since 2003 as an oil glut has taken hold.

Also contributing to the glut was Iran’s return to the international oil market after sanctions were lifted against the country under an international agreement with major world powers to restrict its nuclear work that took effect in January.

Executives think it will be years before oil returns to $90 or $100 a barrel, a price that was pretty much the norm over the last decade.

What is the current price of oil?


Brent crude, the main international benchmark, was trading at around  $38 a barrel on Wednesday.

The American benchmark was at around $37 a barrel.

Why has the price of oil been dropping? Why now? 



This a complicated question, but it boils down to the simple economics of supply and demand.

United States domestic production has nearly doubled over the last several years, pushing out oil imports that need to find another home. Saudi, Nigerian and Algerian oil that once was sold in the United States is suddenly competing for Asian markets, and the producers are forced to drop prices. Canadian and Iraqi oil production and exports are rising year after year. Even the Russians, with all their economic problems, manage to keep pumping.

There are signs, however, that production is falling because of the drop in exploration investments. RBC Capital Markets has calculated projects capable of producing more than a half million barrels a day of oil were cancelled, delayed or shelved by OPEC countries alone last year, and this year promises more of the same.

But the drop in production is not happening fast enough, especially with output from deep waters off the Gulf of Mexico and Canada continuing to build as new projects come online.

On the demand side, the economies of Europe and developing countries are weak and vehicles are becoming more energy-efficient. So demand for fuel is lagging a bit.

Who benefits from the price drop?


Any motorist can tell you that gasoline prices have dropped. Diesel, heating oil and natural gas prices have also fallen sharply.ny motorist can tell you that gasoline prices have dropped. Diesel, heating oil and natural gas prices have also fallen sharply.

The latest drop in energy prices —  regular gas nationally now averages just above $2 a gallon, roughly down about 40 cents from the same time a year ago — is also disproportionately helping lower-income groups, because fuel costs eat up a larger share of their more limited earnings.

Households that use heating oil to warm their homes are also seeing savings.



Who loses?


For starters, oil-producing countries and states. Venezuela, Nigeria, Ecuador, Brazil and Russia are just a few petrostates that are suffering economic and perhaps even political turbulence.

The impact of Western sanctions caused Iranian production to drop by about one million barrels a day in recent years and blocked Iran from importing the latest Western oil field technology and equipment. With sanctions now being lifted, the Iranian oil industry is expected to open the taps on production soon.
In the United States, there are now virtually no wells that are profitable to drill.

Chevron, Royal Dutch Shell and BP have all announced cuts to their payrolls to save cash, and they are in far better shape than many smaller independent oil and gas producers.

States like Alaska, North Dakota, Texas, Oklahoma and Louisiana are  facing economic challenges.

There has also been an uptick in traffic deaths as low gas prices have translated to increased road travel. And many young Saudis have seen cushy jobs vanish.

What happened to OPEC?


Iran, Venezuela, Ecuador and Algeria have all pressed OPEC, a cartel of oil producers, to cut production to firm up prices. At the same time, Iraq is actually pumping more, and Iran is expected to become a major exporter again.

Major producing countries will meet on April 17 in Qatar, and some analysts think a cut may be possible, especially if oil prices approach $30 a barrel again.

King Salman, who assumed power in Saudi Arabia in January 2015, may find it difficult to persuade other OPEC members to keep steady against the financial strains, even if Iran continues to increase production. The International Monetary Fund estimates that the revenues of Saudi Arabia and its Persian Gulf allies will slip by $300 billion this year.



Is there a conspiracy to bring the price of oil down?


There are a number of conspiracy theories floating around. Even some oil executives are quietly noting that the Saudis want to hurt Russia and Iran, and so does the United States — motivation enough for the two oil-producing nations to force down prices. Dropping oil prices in the 1980s did help bring down the Soviet Union, after all.

But there is no evidence to support the conspiracy theories, and Saudi Arabia and the United States rarely coordinate smoothly. And the Obama administration is hardly in a position to coordinate the drilling of hundreds of oil companies seeking profits and answering to their shareholders.

When are oil prices likely to recover? 


Not anytime soon. Oil production is not declining fast enough in the United States and other countries, though that could begin to change this year. But there are signs that supply and demand — and price — could recover some balance by the end of 2016.

Oil markets have bounced back more than 40 percent since hitting a low of $26.21 a barrel in New York in early February.

Some analysts, however, question how long the recovery can be sustained because the global oil market remains substantially oversupplied. In the United States, domestic stockpiles are at their highest level in more than 80 years, and are still growing.

But over the long term, demand for fuels is recovering in some countries, and that could help crude prices recover in the next year or two. - The New York Times

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Supersized and overweight civil servants

The public waiting their turn for services at a government department. - Filepic

When those two words describe a nation's public sector, it means it's truly a burden on taxpayers.

POOR civil servants! If you watched Disney’s animated film Zootopia, you would have caught the hilarious scene where the heroes, a rabbit and a fox, rushed to the Department of Motor Vehicles to check out a licence plate, only to get very, very slow service from the sloths manning the counter.

It would appear this stereotyping of civil servants’ work ethic is universal, which is why the parody tickled audiences everywhere.

Now Malaysians have another reason to make fun of their civil servants: they’re too fat. At least the ones in Putrajaya are, according to the 2015 National Health and Morbidity Survey (NHMS) which showed it has the highest rate of overweight and obese citizens.

It’s an established fact that Putrajaya is populated overwhelmingly by government employees, which means those living and serving in the very heart of the nation’s administrative capital are rather unhealthy.

That’s a bummer because, design-wise, Putrajaya got it right. It was a winner in the 75,001­ to 150,000-population category for the Whole City Award under the International Awards for Liveable Communities 2012.

In the paper submitted for the awards, Putrajaya boasted of having “lush greeneries surrounding buildings, infrastructure, (12) parks and gardens.” What’s more, the same paper took into account the need to keep Putra­jaya folks fit and healthy.

It noted that 28% of the residents had a normal BMI (Body Mass Index), 36.3% were overweight, 27.4% obese and 8.3% were even underweight. That was in 2011.

Just four years later, 37% of Putrajayans are said to be overweight and their obesity rate is 43%, according to the NHMS findings.

These are alarming jumps and more so when there were efforts like the Healthy Parks, Healthy People programme to get the residents to exercise to stave off lifestyle diseases like hypertension and diabetes. Among the activities was the Putrajaya Inter-Park Ride monthly cycling event.

So what gives? Why are Putrajayans and Malaysians on the whole so fat? We hold the title of Fatties of South-East Asia; some reports say the whole of Asia.

Some people may, in a perverse way, hail having an overly well-fed population as a sign of a nation’s prosperity. After all, the fattest people in the world are the Americans.

A How’s Life? 2015 Report by the Organisation for Economic Coopera­tion and Development ranked the United States as the nation with the most obese population. It also had the fattest children and the unhealthiest teenagers by a wide margin.

The findings are said to be a blow to the Obama administration and First Lady Michelle Obama because they have been championing this cause for years, including reducing sugar and salt from school lunches.

So if both the US and Malaysian Governments couldn’t stem the fat tide in their respective countries, who can? I would say it’s still the government and we the people.

What we have is a terribly bloated public sector. The Star, quoting Prime Minister’s Office statistics, pointed out that at 1.4 million employees, it’s the largest civil service in South-East Asia.

Supersized and overweight. That’s a double whammy and the kind of Malaysian Book of Records we don’t need. So for a start, how about really downsizing the civil service? After all, why do we need so many civil servants to serve a population that’s way smaller than those in neighbouring countries like Indonesia, the Philippines and Thailand?

Next, I support calls to make it mandatory for civil servants to lose the fat and stay healthy. This is especially so for those who have yet to develop serious illnesses like diabetes. If need be, withhold promotions and salary increases if they don’t meet this KPI.

The reason why I am pushing for this is because civil servants get free medical services in government hospitals and clinics, even after retirement.

That’s a longstanding benefit which I don’t object to, since my retired police officer father is a beneficiary. But with a large, unhealthy government workforce, you can imagine the humongous medical bill we taxpayers are burdened with.

If nothing is done, it will become a bigger burden because, as doctors have warned, 20 years from now, those overweight and obese citizens will be suffering from all sorts of illnesses from stroke, heart disease and kidney failure to diabetes.

All that “will increase the health budget to an unsustainable level,” Malaysian Medical Association president Dr Ashok Zachariah Philip told The Star.

Thanks to my role as the primary caregiver to my elderly parents who suffer from various illnesses, I know how scarily expensive medical care can be for those without access to free treatments.

As a private sector employee, I am grateful to be working for a company that gives me good medical coverage. But I have also bought my own health insurance to prepare for the day when I retire and lose my safety net. In the meantime, I work at staying healthy and medication-free.

As I said, I do not begrudge the medical benefit for government servants. What I do begrudge are those who take it for granted, instead of taking responsibility for their own well-being.

If the Government can work on getting its workforce in shape, non-public sector citizens too can do their part by eating less and more healthily and getting off our butts.

Admittedly, it’s hard now to go out for a run or even a stroll because of the current heat wave and haze. But we can try taking the stairs instead of the lift, drink more water than teh tarik and yes, eat less of our beloved nasi lemak.

Proud as we are that Time magazine ranked it as the ninth healthiest breakfast in the world, we know better. A dish that tastes that good cannot be healthy!

I leave this thought with you: The OEDC report, which measures the personal and economic health of nations, found that the United States indeed topped the chart in personal wealth and even the number of rooms in American homes.

So yes, they have the wealth but where’s the health?


By June H.L. Wong
So Aunty, So What?

Aunty likes this quote by humourist Jarod Kintz: Obesity isn’t as cool as it used to be, back in the earlier centuries. Before it was a reflection on your gross income. Now it’s just gross. Feedback to aunty@thestar.com.my

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Tuesday, April 5, 2016

Putrajaya the obese-city! Address obesity urgently

Two men cycling in front of the Palace of justice in Putrajaya

Malaysia has the highest percentage of overweight people in South-East Asia and the bulk of them are in Putrajaya. A survey has found that two out of five Malaysian civil servants are obese. The news is not good for the country’s health.

KUALA LUMPUR: It has been long known that Malaysia is the fattest country in South-East Asia. Now, it has been proven that the administrative capital of Putrajaya has the highest rate of overweight and obese people in the country.

Findings from the 2015 National Health and Morbidity Survey (NHMS) placed Putrajaya as the city with the highest percentage of overweight, obese and abdominally obese people in the country.

The study also suggests that the administrative capital’s population has a 37% chance of being overweight, while the obesity rate stood at 43%.

Even more startling, the NHMS said government and semi-government employees took the cake as those struggling most with obesity, with a 40.3% rate.

This could mean two out of every five of Malaysia’s civil servants may be obese.

Malaysia’s civil service has 1.4 million employees, according to the Prime Minister’s Office, and is the largest civil service in South-East Asia.

Other obesity demographics pointed out in the survey were Indians (43.5%), married adults (33.8%) and those who only studied up to secondary school (32.1%).


The findings put the Government in a rather red-faced situation, as it works on reversing the climbing number of obese and overweight Malaysians.

“As the number of people with obesity increases, the nation now is facing an upward surge of non-communicable diseases such as diabetes and cardiovascular diseases,” the survey concluded, describing the Malaysian obesity epidemic as alarming.

Although a review of public health policy was not necessary now, it opined, the Government was asked to provide more supportive environments for Malaysians to lead healthier lifestyles.

Malaysian Medical Association (MMA) president Dr Ashok Zachariah Phillip agreed, saying that the life of a typical government servant did not afford them much time or money to stay healthy.

“If you look at the strata, it’s usually the lower grade workers who are overweight because it takes money to keep fit. Government workers go to work at 7am, come back at 7pm and have no time between work and family to even think of exercising,” he said.

It doesn’t help either that basic essentials like white rice, sugar and oil are staple Malaysian diets and are unhealthy, he said.

“For us doctors, this could be a real headache 20 years down the road. We are going to have a growing population with stroke and heart disease, and kidney failures that will increase the health budget at an unsustainable level,” he added.

The Government needs to look into setting up more gyms in agencies and dish out incentives for employees to fight the bulge.

Health Minister Datuk Seri Dr S. Subramaniam said the figures were worrying.

“I don’t think the people are in the best state of health,” he said.

He said general sedentary work has a correlation to obesity, a trend which government agencies, namely the police, were trying to counter.

“The police recognised this recently and have taken some effort to make sure they have lean policemen. They will try to take action to meet this target,” Dr Subramaniam said yesterday.

Malacca and Perlis are the states with second and third highest obesity rates. Sabah and the Federal Territory of Labuan were the slimmest states.

By Micholas Cheng The Star

Address obesity urgently




AMID the current heat wave, not only are we blue over the greens (The Star, April 4) with highland vegetables wilting and Ipoh’s famous pomelos shrinking in size, schoolchildren are also getting more obese with the sound advice from the authorities to stay indoors.

Presumably, many children will go in droves to air-conditioned malls and fast food restaurants for meals, which naturally will add to the problem of obesity.

Doctors say obesity is defined as the condition of being very overweight and having a body mass index, or BMI, of 30 or higher. The BMI is a measure of the weight relative to the height.

Evidently, obesity is manifested in the abdominal fat around the waist of children and adults as well.

But we should not get unduly worried with the adults because they are mature and knowledgeable enough to take responsibility for their health.

However, the innocent children’s health is undeniably our responsibility. Like it or not, we are accountable and answerable for the obesity problem in their adult life.

Today we can see the startling increase in the number of obese children across the country. Yet many parents unfortunately are seemingly too busy to check their children’s diet, let alone their daily exercise like the recommended walk of up to 10,000 steps a day.

Perhaps schools should voluntarily take up the task of creating awareness about the high risks and health hazards of obesity.

One practical way is to do routine short workouts: get students to burn calories by doing some exercises in the school assembly or in class every day – even some stretching exercises will suffice.

Certainly, this will increase their metabolic rate, thus strengthening their mental ability to learn; reducing levels of stress and depression; and suppressing the appetite.

When the heat wave is over, I would say it is the ethical and moral responsibility of the school authorities to bring back the Physical Standard Tests for all students like the good old days and mobilise all the staff to run selected athletic events such as the 100m, 200m, long jump, high jump and shot putt. Set certain standards for the events.

It would be much better if the Education Ministry’s Sports Department sets the national standards for all these events, which was done in the 60s till the 80s by using the co-curriculum 001 and 002 cards.

Next, it is also incumbent upon the Education Ministry to make it mandatory for school canteens to display the calorie counts for all the food so that the children will learn how to make healthy food choices and to calculate the total calorie intake they require for a day (about 1,600 and 2,500 calories per day depending on their age, gender and activity level).Eventually, they will “graduate” to become smart healthy consumers.

Let’s take these critical measures seriously to save our children from potential health risks like diabetes, high blood pressure, high cholesterol, heart disease and also some cancers.

This will invariably reduce the national health bill as well.

It was reported in “Putrajaya tops obese list” (see above) that we already have the highest percentage of overweight people in South-East Asia, and two out of five civil servants are obese.

Hence, invariably, the Government has to increase the health budget to cater for our increasingly ailing population if the obesity problem is not urgently addressed.

THOMAS KOK Ipoh

Related story: Healthy when young, healthy when old



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Sunday, April 3, 2016

The allure of Penang heritage properties

Prized property: The Chimes Heritage building at Jalan Bawasah, Penang. The value of heritage properties has increased by 37 to 157 per sq ft since 2008 due to the investments made by Penangites staying overseas and by Singaporeans.

Value of such assets has jumped by as much as 157% psf


THE heritage property segment is still attracting strong interest from investors despite the softening of the overall property market in Penang.

The value of heritage properties has increased by about 37% to 157% per sq ft (psf) since 2008 due to investments made by Penangites staying overseas and by Singaporeans.

Depending on the location, size, and condition of the heritage properties, the present pricing on a psf basis ranges from RM550 per sq ft (psf) to RM1,800 psf, compared to between RM400 psf and RM700 psf in 2008.

According to the National Property Information Centre (Napic), a locally registered company, World Class Land Sdn Bhd, snapped up over 60 pre-war houses in George Town’s heritage areas for about RM122mil.

Raine & Horne Malaysia senior partner Michael Geh says the properties were sold between late 2013 and August 2015.

“The most expensive pre-war property, with a 1,363q ft land area and located in Chulia Street, was sold for over RM2,000 psf,” he says.

It is learnt that about RM30mil would be spent for restoring the properties, as the cost of restoration is about RM500,000 per unit.

The company also acquired a 30,000 sq ft of land in Magazine Road for about RM36.9mil. “This was the highest transaction for a vacant land in 2015, as the sale was transacted at RM1,250 psf,” Geh adds.

Geh says locals tend not to pay attention to the capital appreciation of heritage properties, although the value had risen substantially since 2008.

“They should invest because the supply of heritage properties is limited.

“There only some 3,853 units of such properties in George Town’s heritage core and buffer areas, according to George Town World Heritage Inc.

“Because the supply is limited, it is safe to invest, as the value would tend to rise than fall.

“I urged Penangites to acquire heritage properties for own use and enjoy the capital appreciation that would occur incrementally,” he says.

Because of the strong appreciation in the value of pre-war houses, the rental yield of such properties has remained unattractive.

In 2008, the rental of heritage properties, depending on the location, size, and condition of the heritage properties, ranged between RM1,000 and RM3,000, compared to the rental today which is between RM3,000 and RM8,000.

“Calculated on a yearly basis, the rental yield is not attractive.

“Today the yield is about 4.8%, compared to about 4.5% in 2008

“This shows that the value has appreciated faster than the rentals, as there is very little demand to rent properties in the state,” he says.

According to Geh, local investors should pay attention in particular to the heritage properties in the Prangin Market or Sia Boey area, as it has been earmarked for the location of the central LRT station on the island, which would boost the value of the properties in the area.

Meanwhile, the Malaysian Institute of Architects (PAM, Northern Chapter) chairman Datuk Lawrence Lim says the cost of restoring heritage properties has increased by about 40% since 2008.

“Today the cost to restore such houses ranged between RM150,000 and RM500,000 per unit.

“A simple restoration for a heritage property with a 2,000 sq ft built-up area can cost about RM150,000.

“It cost just RM50,000 to restore the roof of a heritage house,” he says.

Despite the increased in the cost of restoration, there are local investors who are still investing in heritage properties.

Lim, who is also East Design managing director, says the company was now undertaking restoration projects for heritage houses in Hong Kong Street and Magazine Road.

“We will be restoring the Koon Kee office building at Hong Kong Street, the manufacturer of Penang’s famous white coffee.

“The other project involves the restoration of 10 pre-war units in Magazine Road for commercial usage,” Lim says.

Datuk Ooi Sian Hian, who is also Ghee Hiang group executive chairman, says he will be restoring the heritage property of his family’s maternal grandparents at 123 Macalister Road.

The property, measuring 3,600 sq ft in built-up area, sitting on a 30,000 sq ft site, was built in the 19th century, and came under the ownership of Ooi’s maternal grandparents in the 1950s.

“We are getting local architects and architectural students through the assistance of PAM to come up with a suitable design concept to restore the property.

“It will be up to the architectural fraternity to decide on the appropriate design concept for the property.

“Whether it will be restored for commercial or residential usage will depend on their design.

“We plan to kick off the project in two year’s time,” Ooi says.

Ooi’s family has 10 properties at Prangin Lane, nine of which he will restore at a later date for commercial re-use.

“The properties have been passed down from the maternal grandparents.

“We want to wait and see what the market for restored heritage properties is like first, as there are already in the market many such restored heritage projects.

“We also want to wait for the state government’s Sia Boey project to be completed first, as the site has been earmarked for a LRT project hub,” he adds.

Ooi says he is submitting a plan to restore the tenth heritage terraced property located in Prangin Lane, which has a built-up area of 1,620q ft.

“We are naming it Jumpa@41PranginLane, which will be restored as a event centre for pop-up markets, seminars, stage plays, and culinary events,” he says.

Under Ghee Hiang, the group is now restoring its heritage property at 61 Beach Street, which has over 3,000q ft in built-up area.

“It is the Ghee Hiang Group’s Concept Lifestyle In-Store, which will be designed to accommodate a living heritage museum showcasing the history of the group’s history and tau sar pneah products and a lifestyle themed cafe,” he says.

Khoo Kongsi trustee Datuk Khoo Kay Hock says the clan association has restored 16 pre-war properties and had leased them to a hotel operator.

“The properties are undergoing interior refurbishment now, and scheduled for opening in the second half of 2016.

“About RM4mil was invested to restore the properties, which were completely restored two years,” he says.

According to George Town World Heritage Inc general manager Dr Ang Ming Chee, there are 3771 heritage properties in George Town belonging to category II.

“Category II properties are those residences and business premises that have existed for generations.

“They were built to support the traditional beliefs of the inhabitants and users.

“In the George Town’s World Heritage Site (WHS), there are 82 buildings, gateways, cemeteries, and sites categorised as Category 1.

“Category 1 buildings and monuments are important because they reflect the authenticity of the cultural landscape and therefore the outstanding universal values of the world heritage site (WHS),” she adds.

By David Tan The Star

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