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Saturday, November 12, 2016

Disruptive Donald J.Trump, US president-elect policies

I was going to write about disruptive technology but the whole week was taken up with the disruption that Donald J Trump caused in upsetting the US establishment by winning the Presidential elections.

The establishment was so confident of a Hillary win that the New York Times predicted 85 per cent chance of her winning and the Economist magazine showed a cover picture with Hillary as America and the rest of the world’s best hope.

Trump’s victory repeated the Brexit phenomenon that the elites don’t get it.

The voters are angry and even if Hillary had the support of women, African Americans and Latinos, it was not enough.

Trump basically tapped into the anger in the dominant American white voter that life has not been good in the last 30 years, attributing this to globalisation, immigration, disruptive technology and mostly, the failure of the elites to listen.

There was something quite Darwinian about the US elections.

Here was an alpha male challenging the establishment, both on the Republican and Democratic sides.

Against all odds, he defeated the Bush dynasty and the Republican party leadership to win the nomination.

Then he crushed the alpha female (Hillary), partly because somehow no one could quite trust what she really stood for.

Certainly, Wall Street would have benefited most, being her major supporter.

But no one quite trusts banksters these days.

Trump put the Clinton/Obama dynasty into its place.

We are likely to see some major changes affecting Wall Street.

Remember how in 1934, newly elected President Franklin Roosevelt sent Joseph Kennedy Senior to go after Wall Street?

How did Trump get there?

Firstly, as a businessman, he understood that the old model was broken because he read the signals right – the average American voter was angry and wanted their issues fixed.

Secondly, he knew that the mainstream establishment media was against him but they didn't get what his pollsters were reading.

The Web traffic was showing that his outrageous statements were touching raw nerves.

Politics ultimately is about the gut rather than the rational mind.

Thirdly, the pollsters were reading the old tea leaves, not appreciating how voters were refusing to show their hand till the last minute.

An American friend had this insight – most of his friends refused to tell anyone that they supported Trump.

They did not want to appear politically incorrect to support a ranting candidate that was not playing to the traditional songs.

But they wanted change – and Obama did not deliver what they wanted.

What next for Trump and for Asia?

Based upon his campaign language, Trump is likely to be quite tough on allies and competitors alike.

American military support wouldn’t come free for allies and he is also likely to be tougher on his foes.

This means essentially that everyone will have to look after their own interests.

The election also showed that what concerns the voter most is the need for good jobs.

This is where globalisation and technology disruption have upset the status quo.

Jobs either go abroad where wages are cheaper or technology is such that most manufacturing can be done onshore, but robotics are replacing grunt labour.

Hence the only Tech Age solution is proper education and training on the job.

In the tech age, governments cannot assume that the market will provide the jobs without state help.

Employers need to be aware that you can’t shed labour without investing in people.

Universities and schools have been disrupted by the Internet, because the best teaching is now accessible online and mostly free.

Massive Open Online Curriculum (MOOC) means that anyone can access the best online lecture course by some of the top lecturers at the best universities, fully up to date.

Who needs uninterested local professors who are still teaching out-dated texts they learnt thirty years ago?

​Digital divide

The Digital Divide means the line between those who are digitally connected and those who are not.

Increasingly, societies are networks across which goods, services, information and value are traded, exchanged and created.

Those who have access to these networks grow wealthier, outstripping those who are not.

Hong Kong is a perfect example of how cities become successful by being a free port, where there are low transaction costs, with rule of law and access to free information.

Having superior marine port, airport and road and now rail connection to the Mainland of China made Hong Kong not just the entrepot centre for Chinese trade with the world, but also a globally connected city.

But making money through trade, finance and real estate is no longer viable when every business is disrupted by technology.

Alibaba, Amazon, Google and Facebook are just a bunch of smart people that integrate multiple markets using their digital platform.

Their cost expense ratios are a fraction of the traditional bricks and employee business of Walmart, real estate developers, banks and newspapers.

They have global reach, especially the young and mobile.

All this means that as America becomes strong under Trump (which he promised), every country or city needs to compete even more fiercely in the digital age.

Cities have better chances of getting their acts together to get the government, business and civil society to work together and achieve how they really want to compete in the digital age.

I was in Shenzhen last month looking at how they are coping with the digital age.

Shenzhen is now green and dynamic, with showcase drone technology, Huawei telecommunications and genomic technology that are at the cutting edge of innovation.

No one I talked to cared about the angst that was going on in Hong Kong, where the young and old are still squabbling over their own identities.

Shenzhen was moving to compete head-on with Silicon Valley, Bangalore, Shanghai and Hangzhou. And this is a city that thirty years ago had no university of its own and no serious manufacturing to speak of. This is an immigrant city par excellence finding its own place in global technology.

Disruption comes from sheer willpower. Either you disrupt or you become disrupted.

Trump and Shenzhen are showing the way. Everyone else please wake up.

By Andrew Sheng, Asia News Network/The Star

The writer, a Distinguished Fellow of Hong Kong-based think-tank Fung Global Institute, writes on global issues from an Asian perspective.

 

Trump policies

 

 
Post-Trump: Where does the ringgit go from here?
DONALD Trump’s shock upset in last week’s US presidential elections have triggered a massive move in the global currency markets over the past few days.


 
Under pressure: A currency trader showing the ringgit and US dollar notes at his money changer’s store in Kuala Lumpur. The ringgit has weakened considerably against the US dollar in the NDF market since Thursday. It hit as high as 4.54 against the dollar at 10am yesterday. 
Why the worry on the offshore ringgit market?
The alternative view - By M. Shanmugam
REGIONAL currencies coming under pressure after the US presidential election were something that was expected given that the Federal Reserve was looking at raising interest rates before the year ends.


Bank Negara Malaysia governor Datuk Muhammad Ibrahim said: "The situation now is result of speculative positioning."

Ringgit sinks offshore just as economy perks up
SINGAPORE/KUALA LUMPUR: Malaysia's ringgit plunged to its weakest in more than 12 years in offshore markets on Friday as investors dumped government bonds, forcing the central bank to use its persuasive powers to keep the spot rate steady by deterring sellers onshore.



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Friday, November 11, 2016

Philippine, Malaysia to cooperate on combating terror groups and pirates

Meeting of two leaders: Najib talking to Duterte during the Philippines President’s visit to the Perdana Putra building in Putrajaya. — Bernama

https://youtu.be/yyqsLvD7WsQ

Philippine, Malaysia to cooperate on combating terror groups

President of the Philippines, Rodrigo Duterte, is making his first official visit to Malaysia. Talks between the two countries focused on ways to combat threats from militant groups. Extremists from the southern Philippines, especially Abu Sayyaf, have been responsible for numerous incidents of piracy and kidnappings in waters between the two countries.

Duterte gives Malaysia licence to enter waters to pursue pirates


The days of pirates escaping Malaysian authorities by fleeing across the border into Tawi-Tawi waters are over.

Philippine President Rodrigo Duterte, in his inaugural visit to Malaysia, has given Malaysia the licence to enter his country’s waters in pursuit of not only kidnappers, but also militants who have been terrorising Sabah’s east coast.

https://youtu.be/dKaUuOzfoLA

Calling this a new development in Putrajaya-Manila ties, Prime Minister Datuk Seri Najib Tun Razak said the two leaders agreed on the need to stamp out the security risk which also affects Indonesia.

There were several kidnap-for-ransom cases this year alone, which saw 10 Malaysians whisked away by militant groups based in southern Philippines. Five are still being held captive.

“I appreciate Duterte’s understanding because this is a practical way for us to help each other. It’s a new development which has been agreed by (Indonesian President) Jokowi with Duterte, and now with me.

“We need to stamp out this crime as this is affecting the welfare and security of not only Sabahans but tourists who visit the state,” Najib said after a bilateral meeting with Duterte yesterday.

The Philippine President was here for a two-day visit, his first after assuming the presidency in June.

Defence ministers from Malaysia, the Philippines and Indonesia will be meeting in Vientiane on Nov 22 to discuss the standard operating procedure and the various legal aspect of this new development.

While authorities from Malaysia and Indonesia are allowed to enter its maritime borders, they have to inform the Philippine navy of their presence in the area.

“If you are in hot pursuit of the bad guys and we reach maritime boundaries, the bad guys will get away if you stop. So, President Duterte said we should continue the chase and he has given us the licence to do so. We are to inform the Philippine navy and they will assist us if they are nearby,” said Najib.

The Prime Minister said new orders would be issued to the security forces based along the Sabah east coast and that this latest development was a clear sign of the two countries’ commitment to eliminate kidnapping incidents.

“This new development will also help move relations between both countries forward.

“While we have been enjoying warm and cordial relations, we have yet to reach our full potential due to security and legal issues,” he added.

On Philippines’ claims over Sabah, Najib said that this was not an issue to be addressed immediately.

Philippines has a long standing claim to Sabah, which was once under the rule of the Sulu Sultanate.

The claim has caused snags in several matters such as the setting up of a BIMP-EAGA (Brunei Darussalam-Indonesia-Malaysia-Philippines East Asean Growth Area) regional office and a consular office in Kota Kinabalu.

Duterte expressed appreciation on Malaysia’s role in the peace process in southern Philippines, said Najib, adding that the Government has agreed to continue placing an international monitoring team there.

“With negotiations completed, there is no need for a facilitator to be placed there, but Duterte has asked for the monitoring team to remain,” he said.

Malaysia has been playing the role of facilitator in the Bangsamoro peace process negotiations and is leading the international monitoring team in the southern Philippines.

On the issue of illegal immigrants in Sabah, Najib said both countries agreed to send home in stages the 7,000 Philippine nationals currently in the state.

By MAZWIN NIK ANIS JOSEPH KAOS JR The Star Asia News Network

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TPPA in danger of collapse after its biggest critic wins US presidency


KUALA LUMPUR: The Trans Pacific Partnership Agreement (TPPA) faces its biggest challenge with the election of its major critic Donald Trump as US president. The agreement will collapse without the participation of United States, said its prime mover in Malaysia, Datuk Seri Mustapa Mohamed.

The International Trade and In­­dus­try Minister explained that for TPPA to be ratified, it needs at least six countries, accounting for 85% of the combined gross domestic product of the 12 signatories.

“Without the United States, there will be no TPPA,” he said when met in Parliament yesterday.

He added that failure to carry out TPPA may affect the Malaysian economy.

“We went into TPPA for the overall interest of Malaysia. To be a part of this process, to do more trading, as we believe that this will help trade and investment for Malaysia.

“Among the reasons why we joined was to get access to Mexico and Canada, countries that we haven’t gotten access to,” he said.

He, however, was quick to add that it was too soon to make an analysis on the matter.

Trump’s shock victory stunned capital markets around the world with investors seeking safe haven assets such as gold to brace the period of uncertainties.

In an immediate after-effect Asian stock markets fell, with Bursa Malaysia performing relatively better than most other markets, shedding less than 1%.

The US dollar index, which measures the strength of the currency against a basket of currencies, spiked to more than 1,207, largely due to the weakening of emerging market currencies and strengthening of safe-haven currencies such as the Yen and Swiss francs.

The ringgit fell to RM4.224 against the greenback, a nine-month low since Feb 25. Gold spot prices went up by almost 5% to US$1,337 (RM5,645) as investors sought shelter in safe haven assets in the period of uncertainty.

Ministers and chief negotiators of TTPA countries are expected to meet in Peru soon to take stock on the fate of the agreement.

International Trade and Industry secretary-general Datuk J. Jayasiri, who was Malaysia’s chief TPPA negotiator, said there was no indication so far that Washington under President Barack Obama would not table the Bill in the US Congress for ratification.

“All indications from US Trade Representative Michael Froman is that they are working hard to table it. The US has its own domestic process and for Malaysia we will continue the process of amending our laws,” he said.

Peru will host the annual Asia Pacific Economic Cooperaton (Apec) summit on Nov 19 to be attended by Prime Minister Datuk Seri Najib Razak. Obama is also expected to attend.

American Malaysia Chamber of Commerce (Amcham) executive director Siobhan Das said US business investments would continue to find a home in Malaysia.

“Amcham supports all efforts that enable free and fair trade between all parties, and looks forward to working with the new administration to grow US business interests in Malaysia,” said Das.

Malaysian Association for Ame­ri­can Studies (MAAS) President Prof Dr K.S. Nathan believed that Trump would try to fine tune but would not scrap the agreement.

“They may renegotiate some aspects of it but I don’t see Trump pulling back on the TPPA or even the North American Free Trade Agreement”.

The US Embassy’s charge d’affaires Edgard Kagan explained it was still possible that TPPA would be approved by US lawmakers.

“There are different views on trade in the US. President Obama is committed to the TPPA and we will just have to see what happens,” he said.

In theory, the TPPA could still be ratified by Congress during its “lame duck” session.

This is the session which takes places after the US presidential election but before the inauguration on Jan 20 next year.

BY Razak ahmad, Neville spykerman, Mergawati zulfakar, Loshana k shagar, Hemananthani sivanandam, Rahimy rahim, Martin carvalho, andd. Kanyakumari The Star/ANN

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Donald Trump Wins US Presidential Election




https://youtu.be/YKIOAMcTuWI

NEW YORK, Nov. 9 -- Republican candidate Donald Trump was projected by U.S. media to have won the 270 electoral votes needed for presidency early on Wednesday.

Donald J. Trump has been elected the 45th president of the United States, the capstone of a tumultuous and divisive campaign that won over white voters with the promise to "Make America Great Again."

Trump crossed the 270 electoral vote threshold at 2:31 a.m. ET with a victory in Wisconsin, according to Associated Press projections.

Republican Donald Trump has beaten Democrat rival Hillary Clinton in a close race to win the 45th U.S. presidency early on Wednesday, pulling a major upset after a controversial and scandalous campaign cycle.

According to projection by the major television networks, Trump has surpassed the threshold of 270 out of the total 538 electoral votes needed to win the presidency.

His opponent, former first lady and Secretary of State Clinton, has made a formal telephone call to Trump to concede the election, but will not speak until the next morning, according to media.

In the nail-biting contest throughout the night, Trump was able to pull a winning margin in many of the crucial swing states including Florida, Ohio and North Carolina, and was even able to snatch previously democratic-leaning states like Pennsylvania and Wisconsin.

The victory has made Trump the first president that never held elected office since 1953.- (Xinhua)

US election Results map 5 colours. Donald Trump won the US presidential 


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The US’ ability to project its geopolitical ambitions on the world has nearly come to an end. The rhetoric of Clinton and Trump during their campaigns may just fade away. The world should not take it seriously.

Tuesday, November 8, 2016

China tops global fintech rankings

China's financial technology (fintech) firms continue to lead globally, securing four positions in the top five in a recent industrial ranking.[Photo: mindai.com]

China's financial technology (fintech) firms continue to lead globally, securing four positions in the top five in a recent industrial ranking.

Alibaba's third-party payment platform Ant Financial tops the global ranking for the 100 best performing fintech companies, with micro-loan firm Qudian, wealth management company Lufax and insurance enterprise Zhong An entering the top five, according to a report by international accounting firm KPMG and investment firm H2 Ventures.

The firms are rated according to their capital raising volume and ratio, geographic and sector diversity, and consumer and marketplace traction.

"It is no surprise to see four Chinese companies in the top five. Fintech in China has seen rapid development, fuelled by the demand to address domestic needs," said James McKeogh, Partner with KPMG China. "It is likely that we will see more of these players move to the international markets in the future."

A total of eight Chinese fintech companies are on the list, a remarkable rise from just one company in the top 100 in the 2014 ranking.

"We have seen significant investment in China's fintech sector in recent years, and an increasing appetite for innovative products, supported by the rapid pace of technology development," according to Raymond Cheong, another KPMG China Partner.

China pledged in October to improve supervision in online finance, including peer-to-peer platforms, to contain risks, improve competitiveness and increase risk awareness.

Companies related to lending and insurance are gaining larger share in the full Fintech 100 list, while the creation of value in new sub-sectors such as regulatory technology as well as data and analytics make the fintech sector more diverse, according to the report.

Source:





Related: China mulls sharing blacklist of telecom scammers

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