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Showing posts with label Economy and Business. Show all posts
Showing posts with label Economy and Business. Show all posts

Monday, July 8, 2019

Let’s talk economy – the sequel of education

I WAS not done the last time, so let’s continue our talk about the economy.

In the last article, I wrote that we must spend our way out of the recession and we must act now. We have to spend it on the right things, for the right reasons, using the right people, at the right value.

In the ’80s, we spent on massive highway infrastructure and got ourselves out of the recession. As I said, today we need a different solution that will hit various sectors that will have an overall impact not just on themselves, but also our fundamental way of life.

Where then shall we stake our economic salvation to spark growth in our economy and blaze a path to recovery of the Malaysian nation as a progressive one that will pave our way to be developed?

I say we build on education. Fundamental education. We reform, revamp and rebuild our education infrastructure, systems, administration and human resources. To be specific, primary and secondary education.

Think about it – the East Coast Rail Link (ECRL) is to be built at a cost of RM44bil. Imagine the number of people, companies and all and sundry subsectors that will benefit from a massive capital investment like this in education, not just in the short term but in the long term as well.

Today, Malaysia has in actual fact, a dilapidated, outdated and obsolete – primary and secondary – education infrastructure and system. Our administration and human resources are geared towards upholding this obsolete education model. We need a full revamp and rebuild.

Most public schools are in shambles – old and poorly constructed and poorly maintained buildings; run-down facilities with no air conditioning in this tropical climate. Basically, the hardware of our schools needs a total replacement.

We also need a full revamp of the teaching software – the administration and teaching human re­sour­­ces currently operating our education system. Over the last 30 years, our obsession with seemingly racist policies and religious fundamentalism has produced an ethnic and religious-centric education system, curriculum and teaching profession and administration that is not capable of producing a scientifically and technologically advanced and humanistic progressive majority.

Why else would we have people in government and authority making stupid pronouncements that liberalism and pluralism are dangers to our society?

If you don’t believe our education is so bad, I give you Exhibit No.1: a public university that proclaims so-called religious-based “scientific findings” such as that the various geological age of the Earth did not happen. And you know your education system is in trouble when your professors start theorising that dinosaurs were actually ‘djinns’.

We need a complete revamp of curriculum – what should be taught and not taught in our public schools and who are really qualified to be teachers and administrators for the education of our children. And we need new, well-designed and well-operated places for them to learn in.

For half of the ECRL budget, say RM20bil, we can start the investment and pump-prime the economy beyond our wildest dream. In addition, this spending will fundamentally change the majority of our society to one that is modern and progressive instead of the one we have today, backwards and inward-looking.

It would be something we could call The Great Malaysian Education Revamp Investment.

I would take this initiative away from the current Education Ministry. A ministry that has produced this failed education system cannot be entrusted to carry out a revamp of this nature. An academic, especially one who is steeped in an education based on religious beliefs, is not equipped to lead a major reformation and capital investment initiative. This is a major professional corporate-level investment initiative.

It has to be carried out by a select group of corporate and education professionals supported in the team by various governmental functions on-loan from ministries such as Works, Finance and Legal. This must be a one-stop centre special projects task force. This task force should be separated into

two segments, namely Education Reform and Infrastructure Rebuild.

It is really not that difficult to see what kind of schools we need, both in terms of infrastructure and curriculum. Go to the international schools in this country which cater primarily for children of first world countries – get their blueprint, work with them to understand why they do what they do and implement them.

Look at their infrastructure, see what they have as teachers, what and how they teach, their content and curriculum, and how they administer – and copy them.

If you want to become develop­ed, follow those who already are. Life is that simple.

To all you ethnocentric and na­­tiona­listic purveyors of such pride, I have this reminder. You do not go to Nasa and say, “Show me how to build the Saturn V rocket so I can get to the moon and then decide I need to modify its fuel mixture because I need the ingredients to reflect the national identity.”

That doesn’t work. You will be blown to pieces at the launchpad, which is exactly what happened to our education system the day we decided to do that. You want to reflect national identity? Don’t change the fuel. Paint the fuel tanks with our flags, that’s all.

I hope people get the hint.

Hence, this is what we should be investing in – a developed educational infrastructure, curriculum, teaching resources and a small but efficient administrative capability of international standards. Let’s spend tens of billions on it as capital investment. The rewards will be astronomical and will be far reaching all the way into generations.

It will fundamentally change our society. Imagine international schools for our public school system for primary and secondary education. Imagine the society that creates. Imagine, imagine!

So you may ask, what then should we do with our current infrastructure and resources? You do not move from your house in the ghetto to a spanking new bungalow in the suburbs and bring along your old furniture, do you? You transition only the ones that can fit into this new home and leave behind all the rest.

Sounds harsh? Of course it is. If something or someone is capable enough to be part of a developed infrastructure and resources, you test them and take it with you. If they don’t, you leave them behind. Eventually, close them down one by one until the entire ghetto is gone. Then you bulldoze all of them down.

Some will say that what I am saying is utopian, idealistic or not achievable. Here is my answer to that. Look around the world. Don’t look around underneath our tempurung. Changes are everywhere and they are coming fast. This is the 21st century. You either get on with it or you are going to be left behind. Industries are closing down and being replaced by those we never even imagined before. Never imagined.

Where are the telephone operators at the exchanges today? They don’t exist anymore. Anybody using landline phones in homes lately? Are we holding a telephone or a camera? Or is it a miniature laptop or a recorder or a photo album or ... oh well. I don’t know what it is anymore. Cry all you want, but the taxi industry is going to cease to exist. Satellite TV? Wait till 5G comes along.

Disruptions in industries are the norm. In the 21st century, it is moving at breakneck speed. Sometimes I wonder how long general medical practitioners or pharmacists, as we know them today, can survive, or even conveyancing legal practitioners.

Education is not a sacred cow, especially if we want our nation to survive. We either get on with the programme or we wait for our time to perish like that proverbial frog in the slow-boiling pot.

We must change or die. Going back to economics, we are actually living precariously on borrowed time on the credit of our oil money. The other parts of our economy chip in here and there, but it’s very much oil money today. We need to change that narrative now and produce citizens who can compete and create new economies for the 21st century.

We cannot have this education system that turns our people into sheep, rather than thought-provo­king industry creators and innovators. We need to stop this nonsense.

If we continue on this path, we will see the collapse of our civilisation. Sounds alarmist? No, I am being a realist. People complain that our university graduates are still earning starting salaries of those about 20 years ago. It’s true, but it’s not the employers’ fault. As Bill Clinton used to say, “It’s the economy, stupid.”

The economy will pay what its cost structure can stand for it to be viable. You can fix a minimum wage but if it cannot sell because no one can afford to pay for it, it will close down. And then no one gets paid. There is a reason the Human Resources Minister suggested that we look at African labour.

This is because our other neighbours’ wages have risen to that of what we pay that they don’t have to come to work here anymore. This is because our economy has not grown with the growth of our population, that’s why.

The signs are all there to see, but we refuse to see it. The worse thing is, our civil service and government-­linked company sub-economies have artificially provided shelter and complacency among the majority population, fully financed by taxpayer debts and diminishing oil money. I guarantee you that the retorts to this article, as was to many of my articles, will come from such subsidised mindsets.

Today in Malaysia, mediocrity and unproductivity is rewarded. This cannot, and will not, last for long. We need to change our condition. That change must come with education. Since our economy needs vigorous pump-priming, we might as well go all in with massive investment in education. And in that, we need a true revamp and rebuild of our education.

Let’s just do it.

Siti Kasim is a proud liberal, a non-conformist and a believer in the inalienable rights of individuals to choose their own path as long as no harm is caused to others.

The views expressed here do not necessarily reflect those of Sunday Star

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Can you spare a minute to look at this? http://chng.it/bbZwKBNg 1⃣ 网民重启老马当教长运动 2⃣支持者秒速联署反映惊人 3⃣这匹马不行就换另一匹马 4⃣你签署了吗?

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

Meritocracy Vs. Mediocrity

  Move away from a culture of mediocrity! Who does Malaysia belong to?



Declining performance of Malaysia's civil service, World Bank report


Learn more:

Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin on Reimaging Malaysia Education


https://youtu.be/FVnBpckzi5U

Friday, June 28, 2019

Xi Condemns Bullying, Protectionism Ahead of Meeting With Trump at G20 Summit

Asian member states have grown in prominence as China, India and Indonesia’s economies have boomed over the past two decades. Photo: AFP

https://www.bloomberg.com/news/videos/2019-06-28/what-are-the-g-20-leaders-going-to-discuss-at-their-summit-video

https://youtu.be/1-TwQmGYsEA
https://youtu.be/yRm0c_MnlH4
https://youtu.be/WHA2tm7XtP0

  https://youtu.be/wDgV6RORgv4

The world’s most powerful leaders are gathering in Japan for meetings that may set the direction for the global economy and make the difference between war and peace in geopolitical hotspots.

Key things to watch include any signs of a breakthrough in U.S.-China trade talks, efforts to stem rising tensions between the Trump administration and Iran, and concrete action to lower emissions and reduce plastic pollution in oceans. Major agenda items include President Donald Trump’s meetings with Russian President Vladimir Putin and German Chancellor Angela Merkel.

China’s President Xi Jinping condemned protectionism and "bullying practices" in a meeting with African leaders ahead of the summit, according to Dai Bing, the foreign ministry’s Director General for African Affairs.

“Any attempt to put one’s own interests first and undermine others’ will not win any popularity,” Xi said, according to Dai.

The comments come a day ahead of Xi’s meeting with U.S. President Donald Trump as the leaders try to resolve their trade war, as well as other major disputes like Huawei and the South China Sea. - Bloomberg

Read more:


US president warns of Plan B on China trade - Business News


Only sincerity can break trade impasse

Whether there is an agreement or not, China will defend its core interests and will focus on doing its own things well. China is well prepared economically and politically

G20: as China and India draw close, has Trump overplayed his hand?
With Xi Jinping, Narendra Modi and Vladimir Putin displaying increasing bonhomie, the United States will have cause to reflect on its recent trade disputes with ally New Delhi

Merkel arrives at G20 after second shaking scare
German leader, 65, sparked renewed fears for her health after bout of uncontrollable shaking on eve of summit in Japan.

China and Japan try to move to ‘next level’ as Xi state visit confirmed
Chinese president meets Prime Minister Shinzo Abe ahead of G20 summit in Osaka, saying he hopes to strengthen ties further.

As G20 host, Japan faces awkward criticism of environmental record
Activists say Japan has fallen behind on reducing plastic consumption and is caving to US pressure to water down language on climate change to achieve a unanimous statement on the issue.
Explainer | Why the G20 summit matters for Asia (and Asean)
Asia’s major economies have become increasingly important at the multilateral forum, which experts say is an opportunity for the likes of China and Japan to step into leadership roles formerly dominated by the West.

Xi calls for another US-North Korea nuclear summit
Kim still committed to goal of denuclearising the Korean peninsula, Xi says.

China welcomes ‘actions that avoid US trade war dispute escalation’
Chinese President Xi Jinping and US counterpart Donald Trump are set to meet in Osaka, Japan on Saturday, with reports that details of a truce are being drafted.

G20: eyes on Trump, but Putin’s date with Xi, Modi is one to watch
The Russian leader faces a whirlwind diplomatic task in Osaka. Iran, Syria and arms control top his agenda with the US president, while Trump’s stance on trade has pushed India, China and Russia closer

US and China tentatively agree to trade war truce ahead of G20
Fresh tariffs threatened by the United States are expected to be delayed, with the two countries preparing separate statements.

US-China trade war could last ‘longer than a generation’
Tariff war could ease after G20 meeting between Xi Jinping and Donald Trump in Osaka, but rivalry over technology and finance may escalate into other fields.

US-China trade war deal ‘90 per cent complete’, US Treasury chief says
Steven Mnuchin says this week’s meeting of the leaders of the world’s two biggest economies will be ‘very important’

US pressure on Seoul over Huawei taps into fears of North Korea
Washington hints that access to its spying capabilities could be under threat if South Korea does not play ball over China’s 5G giant. That leaves Seoul to weigh the demands of its security ally against those of its top trade partner.

US wraps up hearings on plan to hit all Chinese goods with tariffs
Hundreds of companies and industry groups weigh in on impact of proposed tariffs on around US$300 billion of Chinese products, ahead of Saturday’s Trump-Xi meeting in Japan.

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The Sino-US trade dispute is not only a game between representatives of the two countries at the negotiating table, but also a cont...


https://youtu.be/BgTKh4Rx-LI https://youtu.be/rD1EIaTh6_U After Huawei, U.S. blacklists Chinese supercomputers https://youtu.be.

Photo: IC https://youtu.be/tGD072hQGP8   The US has no lack of a “criminal record” in terms of technology theft.  The US has r...

Monday, June 24, 2019

US technology sector faces triple threat

Uncertainty over the future of US-China economic relations has derailed the once high-flying global equity market, which rose almost 15 per cent in the January-April period.

Clive McDonnell, head of Equity Strategy at Standard Chartered Bank, looks at the causes behind the decline.

The technology sector, now facing challenges on a number of fronts, is supposedly the main cause behind the decline.

While President Trump’s policies get blamed for a lot of events impacting global equity markets, he is probably less responsible for the upset in the technology sector than many would have you think.

There are three primary challenges facing the US technology sector:

      1. The sector’s high overseas revenue share: over 60% of total revenue comes from abroad.

      2. The threat of regulation on accessing and using personal data.

      3. Monopoly powers and the risk of an antitrust investigation.

Let’s consider each factor. US economic growth appears resilient in the face of weaker growth prospects in the euro zone and emerging markets.

However, since US technology companies generate more than 60% of their revenue from overseas, they are acutely sensitive to slower growth prospects outside the US. In the past, they have been able to offset slower growth in the euro zone with robust growth in emerging markets led by China.

The next downturn may witness slower growth in both regions, which would leave US technology companies exposed relative to US banks and utilities which have the lowest overseas revenue exposure amongst US companies.

Additionally, there is a risk that China responds in kind to the US President’s targeting of Chinese technology companies. There is also a risk that US dollar strength creates a negative effect on US technology sector earnings once overseas revenue is converted into US dollars.

The threat of regulation on accessing and use of personal data looms large for technology companies, particularly those in the social media space. Europe has been at the forefront of regulating use of personal data via the General Data Protection Regulation (GDPR).

These regulations changed the balance of power between individuals and companies over the use of personal data. The rules give EU citizens more control over their personal data held by companies and the right to have their data removed from databases, the so-called “right to be forgotten” law.

The challenge for US companies is these rules cover their processing of personal data in Europe, regardless of the residential location of the individual generating the data.  

The rules give EU citizens more control over their personal data held by companies and the right to have their data removed from databases.

Similar to the long arm of US financial regulators – which impact banks regardless of where they are incorporated once they engage in US dollar transactions – European rules on personal data are impacting US technology companies in ways that are not covered by domestic laws.

The central business challenge for US technology companies, in particular those in the social media sector, is their business models are built on free access to consumer data in exchange for free use of their software, including search, email and productivity tools, such as those available on Google Drive.

If these companies lose unfettered access to personal data, they would likely start charging consumers for use of the same software.

This, in turn, will have a significant impact on their advertising revenues, as the precision they have been able to offer companies targeting customers would decline. No doubt their business models would evolve, but this could be at the cost of lower net margins relative to the near-20% margins they currently enjoy.

Finally, the perceived monopoly power of some of the sector’s leaders and the resultant risk US technology companies face from antitrust investigations is probably the biggest risk to the sector.

The definition of monopoly power in the US, focusing on the short-term price impact on consumers from company actions, has been unchanged for over 40 years.

Specifically, if company actions lead to higher prices, it could be designated as a monopoly (and importantly, the reverse also applies). This is relevant for technology companies as many have helped to lower prices for consumers.

The definition of monopoly power is changing. This is led by Lina Khan, a Legal Fellow at the Federal Trade Commission and an academic Fellow at Columbia Law School.

In a paper, entitled “Amazon’s Antitrust Paradox (1)”, she challenged the current interpretation of antitrust law which is designed to curb monopolistic power. She proposed that lower prices were not necessarily good for consumers if prices were used as a tool to choke off competition and eventually restrict consumer choice.

The primary tool available to technology companies to manipulate consumer choices (and some would say restrict competition) is their search algorithm.

Whenever a social media or e-commerce company implements a change to their search algorithm, the ensuing uproar amongst its users and customers is a measure of the importance this tool has to drive sales and choices for consumers.

The search algorithm assumes unique power once a platform becomes dominant in an industry and consumers no longer look at other platforms as they believe that their chosen one offers them all the choice they need.

The risk is: their choices are being determined by companies who pay more to appear higher up the search results than those which pay less, even though the latter companies may offer lower prices.

If regulators’ definition of monopoly power evolves, as Lina Khan suggests, there is a risk of antitrust investigations against US technology sector leaders, with penalties ranging from fines to reversal of prior acquisitions.

The challenges facing the US technology sector have converged at a time when valuations are elevated and earnings growth has weakened.

They are shining a light on their business model, which can undoubtedly evolve, but may require changes that the market is not currently anticipating.

Clive McDonnell is Head of Equity Strategy at Standard Chartered Private Bank.

The views expresssed here are entirely the writer’s own.

Read more:


US block spurs tech independence drive by Chinese companies

The latest US blacklisting of the Chinese supercomputing companies will not reduce domestic technology companies' resolve to pursue innovation and research and development (R&D) as they strive to make up for shortcomings in certain segments to pursue further growth despite “irrational assaults” by Washington, industry insiders said.
 

Innovation is a driving force within China's economy today. Yet behind that innovation, what's the role of research and development?


https://youtu.be/xo_OLlL7XqI
https://youtu.be/xo_OLlL7XqI?t=199

Wednesday, June 19, 2019

Minds without borders: A coffee with Huawei Ren: We will be reborn by 2021

https://youtu.be/7_kKAiHjJyY

They say a good conversation could be just like drinking a cup of black coffee and as stimulating as it is hard. Today's conversation is certainly stimulating intellectually and thought-provoking. The panelists on stage are trailblazers in their respective fields and certainly very outspoken about the challenges that we are facing today. First up, Ren Zhengfei, the founder and CEO of Huawei. Next, Catherine Chen, the senior vice president and director of the board of Huawei. Also on stage are George Gilder, a tech guru and futurist and Prof. Nicholas Negroponte, a tech visionary who's the co-founder of the MIT Media Lab.

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Category:  News & Politics

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With trade disputes and Huawei row in the forefront of ties, China-US relations have seen unprecedented tensions.


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Painful lessons have taught us time and again that strength is the only thing that matters.

The US trade war against human rights

If the trade war goes on, it will exert an overwhelming impact on the world industrial chain. The US cannot remain unaffected. Its supply and marketing network, which plays a significant role in American people's living standards, will be hit hard. 

Tariffs to wipe out US profits

Proposed US tariffs on Chinese imports will hurt US companies and consumers more than they might imagine and will damage an industrial chain that connects the world's two largest economies, industrial representatives from both China and the US said on Tuesday

Huawei founder:We will be reborn by 2021 - Business News



US companies fight against Trump's tariffs - Business News



 
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Why does the West fail to understand China? The West misreads, China is rising, said Cambridge Prof 

 

A phoenix has risen from the ashes - THE RISE OF CHINA


The oppression of a civilization:

The world was turned into an ocean of colonies of subject people during the few centuries of ‘friendly’ European conquest. The Africans were turned into slaves, the natives of both Americas massacred. The ancient civilization of China was crippled and dismantled into pieces. After the Western powers brought down the decadent Qing Dynasty with the might of modern firearms, the Chinese civilization was turned into a pariah race of nothingness by the invaders in their country. The foreigners did not bring anything good but oppression, bullying and raiding China ’s wealth and dignity by all kinds of barbarian and deceptive means, and by the barrel of the gun. The Japanese joined in and even thought of conquering and ruling the whole of China as their colony.

There was a moment of salvation when Japan attacked Pearl Harbour and declared war on the Western power. China and its peasant soldiers were needed to open another front to sap the fighting power and resources of the Japanese. A large part of the Japanese Imperial Army was held down in China by the peasant soldiers. History would not be the same if the Japanese could run through China without resistance and conquer the whole of Asia .

After the war there was a brief moment of equality for China as a key member of the Allied Forces that fought against the Japanese. Chiang Kai Shek was seated with the Allied leaders like Churchill, Stalin and Roosevelt in Potsdam and Cairo to divide the world among the victorious Allied Powers. China was lucky to have its lost territories back. But Chiang was more like a flower vase and inconsequen-tail, would not be deserving of any war loot. His presence among the leaders of the big powers was a consolation that gave China a little recognition as a big nation.

This little moment of dignity did not last long when Mao Zedong defeated Chiang and China adopted communism as a state ideology. This turn of event led to a renewed and concerted Western effort to brand and condemn the Chinese civilization as peasants, rogues, dumb, uncivilized, aggressive and the pariahs of the human race, a good for nothing race that was lack of talent, unproduc-tive and unimaginative, and unfit to join the advanced nations of the West.

This was the hopeless China painted by the West. They kept repeating the misinfor-mation daily in all western media, like they are doing to North Korea today, that the whole world simply believed so. Chinese are useless, Chinese are lame, Chinese are bad.

Cold Wars, containment policies, encirclement, depriving China of its rightful seat in the UN, blocking China from joining international organizations like the WTO and the Groupings of rich nations, were history now. In the last 40 odd years, China came storming back on its own despite all the sanctions and barriers and threats against its rise as a nation and the Chinese people as a civilization, old, ancient, but not useless and remote of talents.

Throughout the two hundred years of Western oppression and suppression, the Chinese civilization was not allowed to surface, no opportunity to break out and be the equals of other nations. The Chinese civilization was down and out, the Chinese in despair. Many Chinese had doubts in themselves, and were ashamed to be Chinese. The Westerners reinforced this belief by sneering at them, contributing negative literature furiously to debase the Chinese, discriminated against them in practically every human endeavour and industry. In the USA there were racist laws forbidding the Chinese from higher skill jobs. The image and perception of useless and untalented Chinese became a self fulfilling prophecy. The Chinese civilization was a joke, a condemned race that was lacking in industry and innovation.

On its own, slowly and steadily the Chinese rebuilt their nation and their civilization, with little foreign talents and assistance, China has overtaken Japan and is closing in on the US as the number Two world power, economically and militarily. They have proven that they could match the West in every field of industry. The oppression and suppression of a civilization have failed, and a revitalized China has assumed its rightful place as a proud nation among nations. The Chinese civilization is no longer to be spitted at, to be kicked around by the Western powers or by teeny weeny little Asian states. It is now a force to be reckoned with and to be respected on its own merits.

The tag of being the Sick Man of Asia, a semi colony of the West, a broken country with nothing, no inventions, no modern industries, no talents except poverty and all the trappings of a poor and backward third world country vanished over a few decades. There is renewed pride as a people, a nation and a civilization in the new China. A phoenix has risen from the ashes. There is no turning back. The Chinese have found their way back and will leap frog over the West in science and technology and in all things, while the West are still trying to restrain their advances by hook and by crook.

Today, the overseas Chinese are also starting to rediscover themselves, their pride and dignity as a respectable people. They too find some renewed confidence that they are not rubbish and useless as the West wanted to hole them in, to be bullied by even little third world people, to be told to go home in western countries. They too share the pride of an ancient civilization seeking a second chance in renaissance, to achieve in whatever they seek to do, to be a respectable people and civilization on par with the best in the world. They no longer lower their heads in shame as they go about their lives. They are standing tall, heads and shoulders to the Western civilization with the knowledge that they are just as good if not better. The Chinese civilization is reviving and will no longer be oppressed and suppressed again.

After reading this, you can now benefit from a short history lesson of mankind and their actions on earth and the generations to come....DONT BE DECEIVED ANYMORE BY THE WEST…

Thursday, May 23, 2019

Huawei ban: Risk or opportunity for M'sian tech companies? US-China trade war a boon


KUALA LUMPUR: It looked like the start of semiconductor manufacturers’ nightmare when US President Donald Trump fired another salvo in the escalating US-China trade war by blacklisting China’s mobile phone equipment giant, Huawei Technologies Co Ltd.

The act sent shock waves along the supply chain of the global semiconductor industry, sparking strong sell-offs in semiconductor companies’ shares worldwide. The same was seen in Malaysia, which caused the Bursa Malaysia Technology Index to sink 3.47% on Tuesday — the biggest loser among the indices — led by companies linked to the industry.

But it may not be a losing battle in the long run, at least not for Malaysian companies. The trade diversion that will arise from Huawei’s ban in the US, which effectively cuts off US chipmakers from the supply chain of Huawei — the world’s largest provider of networking gear and the second-largest smartphone vendor — may benefit domestic players here.

Pentamaster Group Bhd co-founder and chairman Chuah Choon Bin told The Edge Financial Daily that he expects the group’s telecommunications segment to see a 20% to 30% decline in sales as a result of Huawei’s blacklisting in the US. The contraction may take away some 18% in total sales it anticipates for the year.

However, Chuah said Pentamaster may also stand to benefit from the ban, as he expects China will become more aggressive in ramping up their product developments in the face of what happened to Huawei.

So, he sees a silver lining for the group in the form of trade diverted from US chip suppliers to those located elsewhere, possibly in Malaysia, where Pentamaster supplies chip tester equipment or automated tester equipment.

As such, Chuah does not expect Pentamaster to be greatly affected by Huawei’s ban in the US. In fact, the eventual tally may show Pentamaster gaining from the situation.

Pentamaster was among the technology counters on Bursa Malaysia that took a beating on Tuesday, following the news on Huawei’s ban.

Its shares sank as much as 29 sen on Tuesday to RM4.05, before easing to settle at RM4.10, down 24 sen or 5.53% at market close. It was one of the top losers in Bursa Malaysia’s Technology Index, which retreated to 30.9 points, dragging the FBM KLCI down 0.1% to close at 1,603.74.

Other semiconductor stocks that were badly hit include: Inari Amertron, which fell 10 sen or 6.67% to RM1.40; Mi Technovation Bhd, which was down 11 sen or 6.43% to RM1.60; Globetronics Technology Bhd, which retreated 10 sen or 5.92% to RM1.59; and Frontken Corp Bhd, which fell eight sen or 5.63% to RM1.34.

Nonetheless, the rebound on Wall Street among semiconductor stocks that were bogged down by fears over the trade war’s ripple effects, raised hope that its peers in Malaysia may follow suit, if the upward trend seen on Tuesday is sustainable.

The share price recovery was fuelled by the temporary 90-day reprieve that was granted to Huawei on Monday. The initial ban was to take effect on May 20. The Philadelphia Semiconductor Index gained 2.1% to end a three-day slump on Tuesday.

“The disruption to (the) supply chain will definitely be negative in the short term,” said an analyst who tracks the semiconductor industry, citing as example people who are considering switching mobile phones after the news that Alphabet Inc’s Google would be cutting off the supply of hardware and selected software services to Huawei once the 90 days is up.

“The trade war seems like breaking the supply chain into two ... this is going to be bad in the short term. But if China cannot get their supply from the US, they are likely to turn inwards ... [or to] countries like Malaysia,” the analyst added.

A Singapore-based fund manager commented that Malaysian tech companies presently do not have much to do with Huawei. But the ban is causing everyone in China to sit up and rethink their supply chain strategy. “In short, no one will believe in the US [anymore]. It is not a reliable and credible supplier. What it means is that it is positive for some of those tech companies in Malaysia that can offer what the Chinese need,” he said.

Some analysts, however, have a more cautious stance, saying it is too early to draw any conclusions on the matter given that it is hard to predict any retaliatory moves the two countries could make. The lingering concern remains that any slowdown in international trade volume will not augur well for the world economy, including Malaysia. Meanwhile, some have pointed out that the valuation of Malaysian semiconductor stocks are relatively higher compared with elsewhere.


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China won't accept unequal trade deal

Monday, May 20, 2019

Huawei does not need US chips: CEO on Trump export ban

Huawei Technologies CEO Ren Zhengfei says Huawei would be "fine" even if Qualcomm and other American suppliers would not sell chips to Huawei, because "we have already been preparing for this."

 
https://youtu.be/xcZS8QYky34
Chinese telecom giant will resist Washington pressure, Ren Zhengfei says

SHENZHEN, China -- Huawei Technologies' founder and chief executive blasted the Trump administration's decision to add his company to a government blacklist, insisting the Chinese telecom equipment maker has done nothing illegal.

"We have not done anything which violates the law," CEO Ren Zhengfei told Japanese media at company headquarters in Shenzhen on Saturday in his first interview since the  U.S. decision to restrict trade with Huawei.

Ren indicated that his company will continue developing its own chips to lessen the impact of the ban on its production. Ren said it would be "fine" even if Qualcomm and other American suppliers would not sell chips to Huawei. "We have already been preparing for this," he said.

Huawei unit HiSilicon Technologies, which mainly designs core processor chips, has made similar allusions to plans for dealing with a potential disruption in supply. In a recent open letter, President Teresa He Tingbo wrote, "We actually have foreseen this day for many years, and we do have a backup plan."

Echoing his tougher tone in recent months, Ren said his company will not be dictated to by Washington. "We will not change our management at the request of the U.S. or accept monitoring, as ZTE has done," he said.

The U.S. deployed a similar ban against ZTE last year, pushing the Chinese telecom company to the brink of bankruptcy.

Ren said the impact of the U.S. ban on Huawei's business will be limited, and expressed confidence in its longer-term outlook. "It is expected that Huawei's growth may slow, but only slightly," said Ren, citing the potential of annual revenue growth undershooting 20%.

"Policies that threaten trading partners one after another rob companies of risk-taking attitudes, and the U.S. will lose credibility," said Ren. On the other hand, he sees U.S. President Donald Trump's trade policies providing the impetus for Chinese economic reforms. "I would even suggest that the environment will improve," said Ren.

Huawei's chief shot down the prospect of producing 5G equipment on American soil. "Even if the U.S. asks us to manufacture over there, we will not go," said Ren.

Huawei procures around $67 billion worth of components every year, with roughly $11 billion coming from U.S. suppliers. Huawei depends especially on American parts makers for semiconductors, and it is believed that the company could face problems going forward manufacturing smartphones and telecommunications equipment. - Nikkel Asian Review

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HiSilicon has released a series of chips geared for artificial intelligence under the name Kirin, which are currently used in some of Huawei's smartphones. The company has boasted that some Kirin chips can compete with the likes of Qualcomm Inc. and Nvidia Corp.

Huawei Unit Says It Can Help Ensure Chip Supply Without U.S. Tech, Amid Doubts - Caixin Global

 

 

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Read  Source link: US, China: Frenemies? - World | The Star Online  Professor who predicted clash between great powers talks abo..

 

https://www.cnbc.com/video/2019/05/15/trump-signs-executive-order-targeting-huawei.html Key Points   President Donald Trump on Wedne.

 

 

Sunday, May 19, 2019

US and China: Are the superpowers heading for a collision, or can they be frenemies?

US President Donald Trump and China’s President Xi Jinping at a working dinner in Buenos Aires in December. Mr Trump recently accused Beijing of backtracking on commitments for a proposed trade deal, which Beijing denies.

Read  Source link:

US, China: Frenemies? - World | The Star Online 

Professor who predicted clash between great powers talks about the next challenges ahead, including forestalling conflicts and finding a way forward, perhaps through ‘rivalry partnership’.





Prof Allison: The souring of bilateral ties caused by the ongoing trade dispute between the US and China risks creating the politics, perceptions and psychology that make a clash between the two countries harder to avoid. — China Daily/ANN
Prof Allison: The souring of bilateral ties caused by the ongoing trade dispute between the US and China risks creating the politics, perceptions and psychology that make a clash between the two countries harder to avoid. — China Daily/ANN


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Time to discard any illusions about the US

A letter written by He Tingbo, president of HiSilicon, a semiconductor company owned by Huawei, was made public on Friday. The letter is a touching one and has won public support. In the letter, He said that employees of the company embarked on the most stirring journey in technology history in recent years to make backup products for Huawei and now these products will finally be put to use.


US relies on deception and is most afraid of protracted trade war

The economic data of China and the US for the month of April was not good. There are divergent views on the reasons for China's declining retail sales growth rate and especially, its industrial output growth. But amid China's overall expectations that a trade war could have some impact on the economy this year, one month's unsatisfactory data is socially and psychologically affordable.



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