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Showing posts with label development. Show all posts
Showing posts with label development. Show all posts

Sunday, April 11, 2021

Malaysia's 'taiko' diplomacy in China sparks debate

 

Storm in a teacup: Hishammuddin’s ‘big brother’ remark when meeting Wang caused a stir in the country. — Photos: Xinhua

Hishammuddin (left) and his Chinese counterpart Wang at the signing of the historic MOU on the Establishment of a High-Level Committee to Promote Co-operation in the Post Covid-19 Era.Hishammuddin (left) and his Chinese counterpart Wang at the signing of the historic MOU on the Establishment of a High-Level Committee to Promote Co-operation in the Post Covid-19 Era.

 

 

AT a recent joint press briefing in Fujian Province with his Chinese counterpart Wang Yi, Malaysia’s Foreign Minister Datuk Seri Hishammuddin Hussein said Wang “is my taiko (big brother)” after he described “Malaysia and China is a family” with broad smiles.

For both phrases, he had spoken in “broken” Mandarin before translating into English himself. And in response, a pleasantly surprised Wang Yi replied promptly in Mandarin “We are brothers”.

While this “big brother” remark on April 1 has sent Chinese social media into frenzy as this was interpreted as Malaysia’s strong respect shown towards China, the world’s second largest economy, it has whipped up a storm back home.

Amid this brouhaha focusing on the propriety of the phrases, the economic gains harvested by Hishammuddin in his refreshing display of charming diplomacy have largely been eclipsed. China’s nod to include Malaysian red palm oil on its import list had missed the news headlines.

In response to local criticisms, Hishamuddin has explained he was being respectful to the Chinese State Councillor and foreign minister, as the latter is older and a more seasoned diplomat. The elder brother is 67 years old, and younger is 59.

Hishammuddin had used this trip to express Malaysia’s appreciation to China for the latter’s help in fighting the Covid-19 pandemic. When the virus first hit Malaysia, China promptly sent masks and other personal protective equipment (PPE) to Putrajaya. Its medical teams also came to share their experience in fighting the noval virus.

In defending himself, the Malaysian top diplomat has argued the act of being respectful does not signify weaknesses.

However, his explanation has provoked more reactions and criticisms. Leading the attack on him are former Foreign Minister Datuk Seri Anifah Aman and Parliamentary Opposition Leader Datuk Seri Anwar Ibrahim.

“As Malaysia’s top diplomat, Hishammuddin should be more circumspect and tactful in his choice of phrase. Instead of trying to justify such wrong choice of phrase, Hishammuddin should have just accepted that he has committed a diplomatic faux pas.

“It was wrong enough to commit a diplomatic faux pas but to argue and try to justify it clearly showed the real character of the person, ” said Anifah, a Sabah leader who had served as foreign minister of Malaysia from 2009 to 2018.

Opposition politician Anwar urged Hishammuddin to apologise to the nation. He said the language and expressions used has put Malaysia as a “boneka” (puppet) to a foreign country.

But whether Hishimmuddin was being careless, commentators with sharp eyes could provide some leads. They pointed out his gestures and body language showed he was sincere with his words.

Chinese commentator Cheng Yue said on his YouTube post: “We can feel that the Mandarin words on ‘you are my elder brother’ was learnt before attending the press event.

“He was smiling as he uttered those words. It was meant for the ears of our government and people, as Malaysia needs Chinese help in its efforts to get its post-epidemic economy back to normalcy.”

Indeed, Hishammuddin is no stranger to the Chinese people. He is remembered as the Acting Transport Minister holding daily press conference at KLIA after the March 2014 disappearance of Beijing-bound MH730 airplane. Many had given thumbs up for his handling of the disaster.

Hishammuddin, who was defence minister during the rule of Barisan Nasional before it was toppled in May 2018, is generally seen to have enjoyed a close rapport with Beijing.

In 2019, when he was in the opposition, he had offered to help track down fugitive billionaire Low Taek Jho, rumoured to be hiding in China. Low was (and still is) wanted to help in the investigations into 1Malaysia Development Berhad (1MDB).

But while criticisms are aplenty for his “taiko” phrase, Hishammudin is not short of support.

Leading Chinese daily in Malaysia Sin Chew Jit Poh opines the Foreign Minister has not committed any wrong by showing respect and friendship to the host.

In its editorial headlined “Calling Wang Yi elder brother will not be self-dwarfing”, Sin Chew wrote last Tuesday: “We do not understand what wrong our Foreign Minister had committed. Did he sign any treaty deemed as insulting to Malaysia? Did he give away our sovereignty?”

The newspaper opposed calls for Hishammuddin to apologise to the country for his remarks. It said: “We have to be more broadminded. In our daily life, we address people we respect as ‘big sister’ or ‘big brother’. What is diplomacy? It is the use of a language skillfully to smoothen the process to achieve our goals in international negotiations.”

In fact, Hishimmuddin’s remarks have won praise from the most powerful Chinese foreign ministry spokeswoman Hua Chunying. In her regular media briefing the following day, she said: “Even separated by a screen, we can feel the warmth and close friendship of the two nations.”

To political observer Professor Dr Chin Yew Sin, the seasoned politician’s remarks could be interpreted from political and economic angles.

“On the one hand, our general election (GE15) is coming soon. From the political angle, he is playing with the China card to woo local Chinese votes. (About 30% of Chinese voters have not decided which party to support in GE15).

“On the other hand, Malaysia needs China to buy more palm oil to help revitalise our economy as it is facing problems with Europe. Post pandemic, we need more Chinese tourists coming. If not, you think Hisham will call China ‘taiko’?” While there may be doubt on China’s influence in GE15, Chin is right on the economic front.

As a government leader, Hishammudin knows the importance of China to Malaysia. The mainland is Malaysia’s biggest trade partner for 12 consecutive years. It has also been a significant source of foreign investment since the Barisan administration.

Despite the pandemic, China’s imports of Malaysian commodities and manufactured goods hit record high in 2020. This has resulted in a bigger trade balance in Malaysia’s favour.

In fact, some people believe Hishammuddin was exuding personal charisma to achieve the national goals for Malaysia.

As China’s economy is in the full swing now after recovering speedily from the pandemic, it is pertinent for Kuala Lumpur to deepen its economic cooperation with Beijing.

Last Wednesday, the International Monetary Fund raised its 2021 GDP growth forecast for China to 8.4%, up from 8.1% in January.

Hence, signing a pact to establish a Malaysia-China High-Level Committee on Post-Covid-19 Cooperation is a wise move, as Malaysia will stand to gain from cooperation rather than confrontation.

At the media briefing on April 1, Hishammuddin said this would “provide policy guidance for all aspects” of relations: trade and investment, food security, science/technology, travel and quality projects under the Belt and Road Initiative.

From this trip, Malaysia achieved a breakthrough in trade. Beijing agreed to allow imports of our red palm oil, which had previously failed to meet China’s colour specification standards. This gain is important as palm oil is a major export and foreign exchange earner for Malaysia.

The Malaysian Palm Oil Council (MPOC) recently projected that China would import 6.8 million tonnes of palm oil this year. Out of this, about 42% would be sourced from Malaysia.

China watchers say if Malaysia wants China to import more, it has to play its diplomatic card right. In this regard, Indonesia has outwitted Malaysia.

According to Xinhua News Agency, Wang said on April 1 China is willing to work with Malaysia to continue to promote high-quality Belt and Road cooperation in the post-epidemic period.

He also expressed China’s willingness to enhance cooperation on Covid-19 vaccine and drug research with Malaysia, adding that the two sides should enhance cooperation in fields including 5G, digital economy and modern agriculture.

According to a Nikkei report, Malaysia will become the second Chinese vaccine production base in the region, after Indonesia. These deals will help to promote greater acceptance of Chinese vaccines in this region and globally.

In this meeting, China and Malaysia also agreed on mutual recognition of “vaccine passports” to facilitate travel. For Malaysia, this will lay the groundwork to restart international tourism.

While the ‘taiko” remarks have caught the eyes of Malaysians and Chinese nationals, they might have also caught Washington’s attention.

On the eve of his visit to China, Hishammuddin received a call from US Secretary of State Antony Blinken, who “affirmed the key role of Asean-centrality in the Indo-Pacific and underscored the importance of promoting freedom of navigation, overflight and other lawful uses of the sea, including in the South China Sea”.

The Malaysian diplomat has described their conversation as “great”.

“Blinken appeared just as enthusiastic about Malaysia’s relationship with China, ” according to a comment by Nikkei.

Given that President Joe Biden has pledged he will prevent China from becoming the world’s “leading” and “wealthiest” country, and Washington is getting all its allies to encircle Beijing, it is no surprise that any activities linked to China will be monitored by US officials.

Asean leaders have generally chosen to stay neutral in the US-China confrontation. But they have to engage more with China – their closer neighbour that is overflowing with economic opportunities.

In fact, Wang’s meeting with Hishammuddin was part of his meetings with three other Southeast Asian nations from March 31 to April 3. The foreign ministers of Singapore, Indonesia and the Phillipines had held meetings with Wang separately on different days.

Wrapping up his series of meetings with the four Asean nations, Wang Yi told China’s state media that he has called on Southeast Asian nations to be on the alert for external forces interfering in coup-hit Myanmar, as its junta faces rising international pressure to return democracy to the people.

On these Asean meetings, the Global Times of China opines Beijing is overcoming US attempt at “encirclement.” It said: “It is actually very easy to break the so-called US encirclement. This encircling of China is a false proposition put forward by those who think too highly about themselves.”

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Friday, April 2, 2021

US loses focus by inserting anti-China in infrastructure plan





 

Only a US domestic revitalization plan that can forget about China will have any promise

-When developing infrastructure, the internal driving force of society should be far greater than the resistance from interests. But this is not the case in today's US: Editor-in-Chief Hu Xijin-

A woman walks at a platform of a subway station in Chicago, the United States, Jan. 17, 2020.(Photo: Xinhua)

A woman walks at a platform of a subway station in Chicago, the United States, January 17, 2020. Photo: Xinhua

 

US President Joe Biden unveiled a roughly $2 trillion American Jobs Plan focused on infrastructure and the climate crisis in a speech in Pittsburgh on Wednesday. To win support, he said that the "once-in-a-generation" investment would "put [the US] in a position to win the global competition with China in the upcoming years."
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Much of infrastructure in the US has been old. Both Democrats and Republicans are on the same page on this matter. US former president Barack Obama in September 2010 proposed his ambitious plan to renew the US' transportation infrastructure, but failed to achieve it in both of his terms. Neither did Donald Trump. Biden launched the third round of such attempt. His plan contains the greatest details and seems to be the most serious one.
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However, the Biden administration's infrastructure plan was met with opposition from Republicans when it was announced. Trump slammed the infrastructure plan as a "giveaway to China" in a statement on Wednesday, and said that the proposed tax increases designed to fund the $2 trillion proposal would end up backfiring by sending American jobs overseas. Biden may once again have mired himself down in a situation where everyone agrees that it was the right thing to do, but no one can agree on how to do it or where the money will come from.
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US society has been gravely divided. The more interests involved in carrying out a big plan, the more opportunities for political struggles to be created, which will hinder the goal to be achieved. This is the root of the US' problem. To engage in infrastructure construction, the internal driving force of society should have been far greater than the resistance from disputes by different interest groups, but this is not the case in the US. Exploiting "defeating China" as a thrust to push the plan sharply deviates from the appropriate track. This makes the plan hard to achieve.
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Has China ever thought of competing with the US as it builds high-speed trains, widen the highway network and build network base stations? They are entirely China's own national agenda. The incentive to invest is strong, and the general public is very supportive. We can say that China's infrastructure advances with ease. Our concern is often that we should not work lavishly on these projects in case they lead to interim waste or debt.
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The US now has China everywhere in its mind with regard to its domestic policy, attaching labels of national security randomly, and blaming China for any industrial imbalance in the US. Apart from instigating nationalism, this would do little to solve the problem. Over time, the US will not only be down with an anti-China syndrome and strike at anything Chinese, but will also only be able to make its policy with anti-China elements. This will lead to the misdirection of its goal time and again and cause it lose its way in development.
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The US should force itself to forget about China more often. What the US needs to do is struggling with itself. It has been more than a decade since it has called for the construction of the high-speed railway. Why hasn't a single kilometer been built? What does this inefficiency have to do with China? Trump overturned many of Obama's policies and now Biden overturned Trump's policies. Is this what China seduced the US to do?
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It is quite impressive that Washington is beginning to value some important lessons from China. Conflict is also a way to learn from each other. China's key experience is to mind its own work well. Biden's determination to improve infrastructure and increase investment in technology seems to have taken something from China's direction. We hope that the US could adhere to this idea. It is the right way forward.
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If the US really initiated a new investment in infrastructure, it is believed that Chinese society in general will be optimistic about its success. More of this kind of engagement by the US will increase its market demand, which is a positive factor in the expansion of China's economic growth. After all, the contest between China and the US should have been focused on the competition of domestic development, rather than playing chess on the diplomatic front.
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If Washington had refocused its attention, it might not have exaggerated the "China threat" theory as much as it does now. They will find that the benefits of China-US cooperation may outweigh the zero-sum competition with China "from a position of strength." China could be a partner, not a rival, in Biden's plan to revitalize US infrastructure, if Washington so desires.
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Obsessive focus on making enemies or confrontation is narrow-minded and an exhausted strategy. It is an unwise one. This is true of a person, and it is also true of a country
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Friday, June 21, 2019

N. Korea Glorious welcome for Predident Xi, China to support security, development concerns

https://youtu.be/f8TewXsQYvA

https://youtu.be/5cOCsVVc8Sg
https://youtu.be/XzzUWwnRzOU

Chinese President Xi Jinping and North Korean leader Kim Jong-un held talks in Pyongyang Thursday where Xi received an unprecedented welcome. The talks touched on the China-North Korea relationship and the Korean Peninsula issue.

Xi, also general secretary of the Central Committee of the Communist Party of China (CPC), kicked off his two-day state visit to the neighboring country at the invitation of Kim, chairman of the Workers' Party of Korea (WPK) and chairman of the State Affairs Commission of the Democratic People's Republic of Korea (DPRK).

Xi said during the talks that the international community expects the DPRK and the US to keep pushing negotiations forward to reach a result, and China is willing to provide assistance to the DPRK in its "reasonable concerns on security and development."

China is willing to cooperate with the DPRK and other parties involved in the issue to push the political solution, Xi noted.

Kim responded that the DPRK highly appreciated China's contributions in pushing forward the peace process of the peninsula issue.

His country has made positive efforts to avoid tensions in the past year, but "relevant parties" haven't offered any positive response, and this is not what the DPRK wants to see, Kim said. But North Korea is patient to keep communicating with "relevant parties" to find a solution that could be accepted by all parties, Kim noted.

Zheng Jiyong, director of the Center for Korean Studies at Fudan University in Shanghai, said a key reason why the bilateral negotiations between North Korea and the US can't move on is that Washington doesn't want to offer a positive response to Pyongyang's security concerns. Pyongyang feels insecure and so it is reluctant and suspicious to make more concessions, he noted.

"China is capable of making North Korea feel secure and protecting it from unreasonable bullying and threats," Zheng said.

Lü Chao, a research fellow at the Liaoning Academy of Social Sciences in Shenyang, said that although the US prefers a bilateral mechanism, it still needs a third party to guarantee the implementation of denuclearization once it reaches an agreement with North Korea.

A third party or a new international cooperation mechanism is needed at this moment, Chinese experts noted, as the G20 summit in Osaka, Japan will take place at the end of the month, and five parties - China, the US, Russia, Japan and South Korea - of the Six-Party Talks, except North Korea, will gather in Japan, offering a good opportunity for them to discuss such an issue.

China is showcasing its unique influence over the peninsula issue to the US before the G20, Chinese experts noted.

At the invitation of Xi Jinping, general secretary of the Central Committee of the Communist Party of China (CPC) and Chinese president, Kim Jong-un, chairman of the Workers' Party of Korea (WPK) and chairman of the State Affairs Commission of the Democratic People's Republic of Korea (DPRK), paid an unofficial visit to China from March 25 to 28. During the visit, Xi held talks with Kim at the Great Hall of the People in Beijing. Xi held a welcoming ceremony for Kim before their talks. Photo: Xinhua


Unprecedented ceremony

From the welcome ceremony at Pyongyang International Airport to the unprecedented salutation at the Kumsusan Palace of the Sun, Xi received the highest-level reception in the capital of North Korea that shows North Korea attaches great importance to the China-North Korea relationship with firm traditional friendship, Chinese experts noted.

About 10,000 people participated in the ceremony at the airport to welcome Xi and his wife Peng Liyuan. Meanwhile, hundreds of thousands of Pyongyang citizens formed a long welcoming line alongside the highway from the airport all the way to the Kumsusan Palace of the Sun. There were national flags and banners with slogans about friendship, unity and welcome everywhere in Pyongyang on Thursday.

This is the first time that a visiting foreign top leader received a salutation from the North Korean people at the Kumsusan Palace of the Sun, a magnificent building near the northeast corner of Pyongyang that serves as the mausoleum for Kim Il-sung, founder of the DPRK, and for his son and North Korean former leader, Kim Jong-il, who were both posthumously designated eternal leaders of North Korea, Xinhua reported.

Special relationship

"This is like three generations of North Korean leaders are witnessing a new milestone in the bilateral traditional friendship being forged by Xi's visit," Lü said.

After the ceremony, Xi and Peng moved into the Guesthouse of Kumsusan. Zheng said that the Kumsusan has unusual meaning in North Korea as it belongs exclusively to the Kim family. Kim was trying to emphasize his close and unique relationship with Xi.

"The ceremony is just like welcoming a family member and this also means the two parties and the two countries have a special relationship," Zheng said.

Rodong Sinmun, the WPK's flagship newspaper, said in an editorial Thursday that Xi's visit to "the DPRK despite the urgent and important tasks due to the complicated international relations vividly shows that the Chinese party and government are placing great importance on the DPRK-China friendship."

The history of the DPRK-China relations vividly records the comradely friendship between the leaders of the elder generation who closely cooperated with each other hand in hand on the road to accomplishing the cause of anti-imperialist independence, peace and socialism, the editorial said.

Xi said during the talks with Kim that the China-DPRK friendship is a strategic choice made by the two sides with a long-term and overall perspective and will not waver due to changes in the international situation.

It is a steadfast policy of the CPC and the Chinese government to maintain, consolidate and develop China-DPRK relations, he stressed.

The top leaders of China and the DPRK agreed during their talks to work together to create a bright future of inter-party and inter-state relations at a new starting point in history, Xinhua reported.

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Thursday, May 2, 2019

Penang State to study Airbnb woes before legalising operations; Using Airbnb to settle mortgages?

Airbnb, Why the New Logo?

HOW other cities worldwide tackle their Airbnb problems are being studied to see if the home-sharing business could be legalised or regulated in Penang.

The office of the Penang State Exco for Tourism Development, Arts, Culture and Heritage (Petach) is studying their policies to tackle the issue of residential home owners who rent out their units as if they were running a hotel or serviced apartment.

Its exco member Yeoh Soon Hin (pic) said the global home-sharing business was quite established in Penang now that when people buy a house or condominium unit, someone might approach them and offer to guide them to sign up with Airbnb and make money from their new property.

He told the assembly that Penang Global Tourism had met with Airbnb’s management team to discuss how to regulate the business.

“Airbnb told us that they are ready to cooperate and register Airbnb units in Penang with the local authority, but we have no laws or policies for this yet,” he said.

Yeoh said in San Francisco, Airbnb operators are limited to renting their homes to a maximum of 90 days a year.

“In Catalonia, Spain, Airbnb operators can be fined up to 30,000 Euros (RM140,000) and the unit owners fined up to 90,000 Euros (RM420,000) if there are complaints.

“In Singapore, the Urban Redevelopment Authority is proposing to limit Airbnb units to only allow up to six people each time to rent them and for only up to 90 days a year.

“For strata units, Singapore plans to allow it only if at least 80% of all unit owners in the building give consent.

“Japan enacted a law to allow home-sharing of units for only up to 180 days a year,” he said when replying a question from Daniel Gooi Zi Sen (PH-Pengkalan Kota).

Gooi said he was concerned because despite strong enforcement from Penang Island City Council since 2017 to stop residential property owners from using their units commercially, the Airbnb portal lists thousands of units in Penang.

“We cannot deny property owners from benefitting from their assets, but we also cannot let them continue to operate without paying their dues such as commercial assessment rates or the hotel fee,” he said.

Yeoh said Petach was studying how Airbnb operators are regulated while waiting for the federal government to draft laws on home-sharing.

“We raised the issue and were told that the Housing and Local Government Ministry and the Tourism, Arts and Culture Ministry are studying possible laws on this.”

Yeoh said the business was unfair to neighbours, the hotel industry and local authorities.

“They are paying assessments and utility rates for residential units but are using those units commercially while legal hotels that comply with all laws such as safety and traffic provisions pay much more.

“The peace and privacy of their neighbours are being intruded upon,” Yeoh said.

He said his team in Petach was also considering the possibility of recommending that Airbnb operators be charged double or triple the current residential assessment rates that they are paying now after they are legalised.

By arnold loh and r. sekaran at the penang state assembly



MUCH has been said about Airbnb in the news of late. The Malaysian Association of Hotels (MAH) Penang branch has claimed that the emergence of Airbnb and illegal accommodation are among the main causes for Penang hotel occupancy rate to decline.

Another news report indicated that Airbnb operators are required to register with Kuala Lumpur City Hall. At this point in time, it is vital to see the concept of Airbnb. The platform was started to connect people who were looking to rent their homes to those who wanted hotel-free stay accommodation for short periods. The reason for the registration must be for the purpose of regulation by the authorities.

The claim by MAH that the emergence of Airbnb has caused hotel occupancy rates to drop must also be examined.

In terms of cleanliness and hospitality, although hotels do fit the bill, not all hotels are in that category. All hotels must be refurbished and kept clean at all times. It may be a bit too much to ask for luxury bedding or first class service, but cleanliness and pleasant service is not too difficult.

Airbnb hosts are conscious about their guests and the reviews that are given on the website. They go the extra mile, and it is not always accurate to say that Airbnb is cheaper and therefore people choose them over hotels. It is the space, the home away from home concept, and being looked after, the occasional bottle of wine left for guests, the fruit basket, the bottles of fruit juice and mineral water in the fridge — all of these go a long way in wooing guests.

In terms of protection for the hosts and the guests, Airbnb has enough protection in place. It is up to the renter to choose who they want to rent out to. Those who want to rent and those who are renting out their properties have their profiles. Reviews as to the safety of the place and its convenience — all can be seen from the website. It is a very transparent website and no one can complain that they were not aware that there was a danger or that they did not get their money’s worth. There are times that unfortunate Airbnb hosts unwittingly allow roguish guests and their premises are wrecked. The Airbnb hosts too, have a risk to take.

From the reports, it is unclear of the need for Airbnb to be registered or regulated. Hotel operators are required to register as it is a business. Airbnb is a service platform and not a business. For hosts, it is an additional income — especially for the elder population whose children have left, or even for those with university fees to pay, this additional income will be a good supplement. Unlike hotels and motels, Airbnb operators are there on a temporary basis. Sometimes, the owner may get a long-term tenant, and may not want to continue with the Airbnb concept.

Maybe we can take a leaf from countries where Airbnb has been regulated. In Los Angeles, United States, a regulation was passed for short-term rentals (vacation) with an initial cap on rentals for up to 120 days with flexibility to increase that number of days.

In New York, it is illegal to rent out an entire residence for less than 30 days. Short-term rentals are permitted if the homeowner is also staying there throughout the rental period and there are no more than two renters. This would be ideal for an elderly couple who would enjoy the company of young tourists who would in turn enjoy being in a home environment.

In Japan, anyone wanting to list their property on Airbnb will need to register with the local government, who will conduct fire and safety checks on the premises. The new regulations also limit rentals to 180 days per year.

Singapore has prohibited public housing rentals that are under six months, or three months in the case of private housing without the approval of the Urban Redevelopment Authority. In London and Paris, new laws have limited short-term rentals up to 90 days per year, and Liverpool City Council has pushed for national regulations to ensure that landlords register short-term rental properties.

Regulation is of critical importance in shaping the welfare of economies and society. Any form of regulation must work effectively and serve the public interest. Government agencies, in this case, the local councils are responsible for implementing regulatory policies and must be aimed towards protecting the consumer. When imposing such regulations on individuals, such as Airbnb hosts, there must be a goal that will help the government to achieve its purpose. The objective of a government or regulatory body is to ensure better and cheaper services and goods, and to provide a fair competition to any particular industry without encouraging a monopoly. Airbnb may be regulated and the town and city councils may want to draw up guidelines following from the examples cited above.

 By GRACE XAVIER
Grace Xavier is research fellow at the Faculty of Law, Universiti Malaya and she can be reached at gracem@um.edu.my


Using Airbnb to settle mortgages

Survey: Hosting helps to repay loans, provide extra income



https://www.thestar.com.my/business/business-news/2019/07/03/md-the-cost-and-security-issue-of-airbnb/?jwsource=cl

PETALING JAYA: More Malaysians are relying on Airbnb to settle their mortgages given the property overhang that is engulfing the sector.

According to an Airbnb survey of more than 2,000 Malaysian hosts and guests, half of the Airbnb hosts said it had helped them pay for their homes while 40% said Airbnb provided a supplementary income for them to make ends meet.Malaysia is Airbnb’s fastest growing country in South-East Asia for the second consecutive year.

It saw more than 3.25 million guests in Malaysia over the past 12 months ended July 1, which translated to a 73% increase from the previous period.There are more than 53,000 Airbnb listings in the country.

Axis REIT Managers Bhd investment head and former Malaysian Institute of Estate Agents president Siva Shanker said many of the Airbnb hosts were investors and speculators who purchased the properties during the upturn, with the intention of selling them at a higher price.

“However, when the property market started to make a turn for the worse, many of these speculators found it difficult to sell or rent out their units but at the same time they needed income to service their loans,” he told StarBiz.

Siva said many of the buyers and investors had bought the units on the advice of some people with questionable skills and credentials.

“Many of the people, who claimed to be experts, gave false assurances that the properties could be sold at a premium of up to 40% within a couple of years, or that they would be able to get high rental yields.

“This is essentially a get rich quick scheme and many people believed in them. But then the market crashed and many of the buyers are saddled with a property that they can’t sell or rent out.”

Siva said many of the so-called “advisers” had rebranded themselves as Airbnb consultants when the property market slumped.

Airbnb is an online booking platform that allows people to rent out their properties or spare rooms to guests.

PPC International managing director Datuk Siders Sittampalam said the concept of Airbnb needs to be regulated.

“It’s never been regulated in the past, especially in terms of taxes. How do you determine things such as cost and security?”

Siva concurred that proper regulation need to be put in place to for Airbnb operators.

“You don’t know who’s going into your apartment. Every other day, your occupants are changing.

“They could be illegal immigrants, running criminal activities, being a nuisance and disturbing the neighbours.

“How is the unit considered ‘gated and guarded’ when the owner is the one that opens the door to these strangers?”

With no proper regulation in place, Siva said the value of the apartment will deteriorate.

“The owner is running it like a hotel, except he doesn’t have the upkeep skills of a hotelier. Within a year, the apartment will look run down. By then, new properties will be up in the market and new owners will be looking to rent them out.

“The owner of the run down apartment is going to have difficulties finding tenants, but he still needs to fulfil his monthly mortgage. Eventually, it becomes a vicious cycle. To stop this, we need to educate the public and get rid of the self-proclaimed property gurus.”

Another concern is the Airbnb having a huge impact on the local hotel industry.

According to Impiana Hotels Bhd executive director Azrin Kamaluddin, hotels that havemore than four stars will face limited to no impact from the rising popularity of Airbnb.

“The hotels offer distinct product differentiation as they provide experience and service to guests.

“What Airbnb does is offer accommodation as a commodity.

“I believe that owners of four and five star serviced residences that do not lease back their units to operators as well as hotels that are three stars and below would be disrupted by Airbnb.

“It is imperative for hotels that have three stars and below to reinvent themselves to stand out from the competition posed by Airbnb,” he said.

On the potential launch of Airbnb Luxe, Azrin said it would not have an impact on four to five-star hotels, given the relatively small volume and higher price tag of US$1,000 per night.

Siders concurred that Airbnb would only have an adverse impact on budget hotels.

“The four-star and five-star hotels offer different types of services and amenities.”
 
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Friday, April 19, 2019

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

By Wong Chun Wai - comment The Star

RM70bil will be flowing in from here 

 

Penang can expect to raise over RM70bil through projects

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

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

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

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

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

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

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

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

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

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

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

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

Residential properties will be developed on Island C.

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

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


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