Malaysian law firms urged to embrace technology

GESTURE OF APPRECIATION: Liew (left) accepting a souvenier from Ng

at the Legal Technology Exhibition and Forum 2012.

KUALA LUMPUR: Malaysian law firms must adopt technology solutions to better manage and serve their clients, or risk being left out.

"It is timely for local firms to tap into the benefits technology can offer the legal profession," said Datuk Liew Vui Keong, Deputy Minister in the Prime Minister's Department.

"While it would be a costly exercise initially, it will certainly be worth it in the long run," he said.

Liew was speaking at the launch of LegalTech Forum 2012, a two-day conference and exhibition on the use of technology in legal processes and proceedings, hosted at the Putra World Trade Centre.

The case for technology upgrades has become particularly pressing with the recent passing of the Legal Profession (Amendment) Bill 2012 by the Dewan Rakyat, which aims to liberalise the legal profession and build Malaysia into an international Islamic financial hub.

This means foreign law firms will soon be allowed to open offices here and foreign lawyers can practice in the country, increasing the level of competition for Malaysian lawyers and law firms.

Liew pointed out that when international law firms start setting up offices here, they will bring not just their expertise, but technology as well. "This is why local firms must ensure that they are able to collaborate and compete with these new players," he said.

He said the courts here have already moved to adopt technology solutions, giving the implementation of the court e-filing system in March 2011 as an example.

Change is in the air
 
The overall environment of the legal industry and mindset of its practitioners is one of comfort, some pundits believe.

"For too long the legal industry has been comfortable in doing things the same way, (so much so) that many don't see the need to innovate," said Joycelyn Ng, managing director of event organiser JFPS Group Malaysia.

But the tide is changing, she said, as demonstrated by the bulk of queries about the LegalTech Forum coming from local firms and practitioners.

"Many of our exhibitors, including Konica Minolta and ServTouch, were delighted at the opportunity to showcase their solutions, specifically to legal practitioners, because there has been no platform for them to do so previously," Ng said.

She shared that the field of data management has been of particular significance. "This technology is especially important for the smaller law firms, which are less familiar with such systems and rely heavily on staff hired solely for maintaining a manual system for storing and tracking documents," she said.

"The need to retain such staff with knowledge on how your company's entire data management system works can turn out to be a costlier exercise than digitising the whole process," she added.

According to her, the inaugural LegalTech event has had much positive response, with global vendors and regional buyers expected to complete transactions worth more than US$20mil (RM60mil) on the premises before it ends on June 15.

Thirty-two exhibitors are showcasing their solutions at the event, and so far some 2,500 visitors have passed through its doors.

By GABEY GOH  bytz@thestar.com.my

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After Barclays, the golden age of finance is dead

Retribution and regulation are sure to follow the Barclays scandal, but if the City is shackled, Britain as a whole will suffer

Everyone's a loser: punishing the City is inevitable following the Barclays scandal, but the whole of Britain could suffer Photo:

Just when you thought bankers could sink no lower in public regard, they’ve done it. News that Barclays has been found guilty of repeatedly falsifying the interbank rate – sometimes for the personal gain of traders, sometimes to make the bank itself seem more creditworthy than it really was – tops off another calamitous week in the seemingly never-ending litany of banking misdemeanours.

Coming hard on the heels of the chaos surrounding an IT breakdown at Royal Bank of Scotland, it is as if bankers are actively out to confirm their reputation for recklessness, incompetence and self-enriching disregard for the interests of customers and the wider economy.

At a time when the political and regulatory backlash against finance is already at fever pitch, much of it ill-thought out, counterproductive and economically harmful, there could scarcely have been a more spectacular own goal. And it doesn’t end there. Banking faces a whole new raft of separate regulatory strictures over the mis-selling of interest rate swaps to business customers.

A year ago, Bob Diamond, chief executive of Barclays, told a committee of MPs that it was time to put the crisis behind us, move on and stop apologising for the failings of the past. He should be so lucky. Not since the Thirties has finance been so much in the dock. On and on the combination of retribution and regulatory crackdown will go until banking is once again thought sufficiently imprisoned to be safe. European policymakers will delight in the ammunition they have been given to rein in the Anglo-Saxon bankers and make them subject to the rule of Brussels and Frankfurt.

Many have already said it, but it is one of those observations that bears constant repetition: in all my years as a financial journalist, it’s hard to recall a case quite as shameful as this – and I’ve certainly seen a few.

There is no industry in all commerce that relies as much on public trust and reputation for probity as banking. We have seen what happens when trust is lost: we get the legion of banking runs that lie at the heart of the financial crisis; people run for the hills and the economy grinds to a halt.

To have American regulators accuse Barclays of lies, deception and manipulation is an appalling indictment of one of the oldest and most respected names in British banking. It is like discovering that your local branch manager has routinely raided your hard-earned savings to finance his champagne lifestyle.

Entrusted with the public’s money, bankers have to be seen as whiter than white, pillars of their community and morally beyond reproach. All these old-fashioned virtues seem to have been lost in pursuit of the easy rewards of international finance. “My word is my bond” – once one of the sacred principles of City finance – has become reduced to a laughable parody of itself.

Now, it may well be unfair to single out Barclays. We already know that at least 20 other banks are under investigation for alleged manipulation of interbank interest rates, including most of the other UK high street banks. It could be that others are equally at fault. We know about Barclays only because in a practice that City lawyers sometimes call “rowing for the shore”, it has decided to abandon the flotilla of co-defendants and settle with regulators.

Downside of plea bargain

In so doing, it may have succeeded in winning both a lower fine and immunity from criminal prosecution, as a corporate entity at least, though the individuals involved may not escape. The downside of such plea bargains is that they involve admission of guilt. The regulator gets free rein to be as critical as it likes, while the mitigation of any defence there might have been is lost.

That these practices appear to have been endemic, not just at Barclays, but across a wide range of international banks, neither excuses nor explains what happened.

It’s interesting that when the fines were first announced on Wednesday, there was barely a flicker of recognition in the Barclays share price. The investigation has been known about for some time, the misdeeds complained of date back three or more years and are therefore water under the bridge, and many in the City judged Barclays to have got off relatively lightly.

But as the night wore on, the seriousness of the situation began to sink in. Bob Diamond, the Barclays chief executive, long despised by regulators found himself politically friendless, too.

As calls for his head mounted, the share price began to plunge. The key concern about Barclays has always been that it is a “black box” operation that only Bob himself properly understands. At a time of growing financial chaos, Barclays could be left leaderless, with the investment banking brains behind much of its recent profitability and successful navigation of the banking crisis thrown to the wolves.

“Bob is mistrusted in the City,” says one seasoned fund manager, “but he’s the glue that holds the whole thing together. Without him it might well disintegrate.”

What went wrong?
 
So what really went wrong here? The London Interbank Offered Rate, or Libor, and its companion, Euribor, are two of the most important benchmarks in finance. Essentially, they are an aggregate of the rates at which banks lend to one another. They are also used to help price a vast array of lending decisions and derivative products, including mortgages.

Yet even in financial markets, it is not widely understood how these benchmarks are arrived at. Unbeknown to senior managers at Barclays, some traders, starting in around 2005 and stretching through to 2009, began persuading those responsible for compiling Barclays’ input to distort the rate in a manner that made their own derivative positions more profitable, hence the excruciating series of incriminating emails cited by regulators.

This was bad enough, but if it had stopped there, the damage would probably have been containable. Even the best of internal controls cannot prevent the determined rotten apple. What has transformed this case into something much more serious is that at the height of the banking crisis “senior managers” themselves – it is still not clear exactly who – ordered that the Barclays submission be manipulated so as to make it look as if the bank was receiving more favourable funding terms than it was. Deceitful behaviour seemed to have become endemic, stretching from top to bottom.

To the extent that there is a defence for such blatant deceits, it runs something like this; everyone else was doing the same thing. Rival banks that were plainly in even worse shape than Barclays were making Libor submissions that appeared to show they were enjoying more favourable wholesale funding rates than Barclays was. On the “if you cannot beat them” principle, Barclays determined to join them.

If this version of events is correct, the whole escapade doesn’t look as bad as it first appears. It is hard to identify who exactly lost out as a result of these fictions. Since there was no interbank funding to speak of at the height of the crisis, it may not in any case have mattered very much.

Even so, it’s quite damning enough. There appears to be nothing bankers will stop at in order to feather their own nests. With tempers already at boiling point over egregious levels of pay and aggressive tax avoidance, the whole affair has now taken on a life of its own.

When the history books are written, this may be seen as a defining moment, the point at which public anger with the banks bubbled over into something much more seismic in its consequences than the general atmosphere of bank bashing we have seen to date. Despite the crisis, there has been a sense of back to business as normal for the City these past three years.

There have been few signs of behavioural change. But this may be the straw that breaks the camel’s back.

Market and regulatory pressures are already laying waste to great tracts of previously highly lucrative banking activity. A major cull of investment banking jobs is expected over the next year, with once bumper bonuses and earnings much reduced on top. Retribution and punishingly restrictive levels of regulation won’t be far behind.

Those who believe that Britain has become too dependent on finance for its own good will no doubt welcome this humbling of an apparently out-of-control City, but they should be careful what they wish for.

Finance’s golden age may be drawing to a close; with no new industry or manufacturing renaissance coming up in the wings, it is not entirely clear what’s going to take its place as a source of British wealth, jobs and tax revenues. It is not just finance for which hard times lie ahead. - Telegraph

By Jeremy Warner

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China set to launch bigger space programme

Enlarge

This photo of the giant screen at the Jiuquan Space Centre shows the Shenzhou-9 spacecraft preparing to link with the Tiangong-1 module on June 24. China will deploy bigger spacecraft for longer missions following the success of its Shenzhou-9 voyage, allowing it to build a manned space station and potentially put a man on the moon, experts said.

China will deploy bigger spacecraft for longer missions following the success of its Shenzhou-9 voyage, allowing it to build a manned space station and potentially put a man on the moon, experts said.

The 13-day voyage of Shenzhou-9, which returned to Earth on Friday, was China's longest-ever space mission and included the nation's first woman astronaut among its three crew members.

In another first for China's 20-year space programme, which has cost more than $6 billion, the crew also achieved the country's first-ever manual docking with an orbital module, the Tiangong-1, a high-speed and high-risk manoeuvre.

In the next mission that will occur at the end of this year or in 2013, Shenzhou-10's astronauts will link up with Tiangong-1 in a similar flight, said Morris Jones, an Australian space expert focusing on China's programme.

The mission will be the last docking with the Tiangong-1, which was put into orbit in September last year.
Morris said no more astronauts would go on Tiangong-1 after the next mission. Then, in a few years, China will launch a more sophisticated version, the Tiangong-2.

When that comes into play, the dimensions of China's space programme will grow significantly, said Isabelle Sourbes-Verger, a specialist on China's space programme at France's National Centre for Scientific Research.

She said future vehicles would allow for larger space modules, longer missions and more powerful launch vehicles,


Enlarge

This photo of the giant screen at the Jiuquan Space Centre shows Chinese astronauts Liu Wang (C), Jing Haipeng (L) and Liu Yang in the Shenzhou-9 spacecraft as it prepares to link with the Tiangong-1 module on June 24. The crew achieved the country's first-ever manual docking with an orbital module, the Tiangong-1, a high-speed and high-risk manoeuvre.

"Longer periods in space -- one to three months -- cannot take place unless there is a vehicle bigger than the 8.5 tonne Tiangong-1, which also did not appear to have a resupply system," she told AFP.

"Tiangong-1... will be followed by two other versions with more powerful 'life support' systems... and will possibly be capable of docking with a second vehicle."

China is also developing the Long March 5, a next-generation booster rocket that will be needed if the nation hopes to place a bigger space station in orbit, said Joan Johnson-Freese, a professor at the US Naval War College.

"Launching that space station... depends on the successful development of a new heavy launch vehicle, the Long March 5," she told AFP.

"I would expect to see this large space station in orbit within the next 10 years -- which could make it the de facto replacement for the now orbiting International Space Station (ISS)," said Johnson-Freese.

She was referring to the life expectancy of the ISS -- run by the American, Russian, Japanese, European and Canadian space agencies -- which is likely to function only to around 2020.

China has never been invited to join the ISS.

Sourbes-Verger said further advances in China's space station programme would "guarantee" that the country plays a major role should any eventual cooperation with the ISS take place.

To realise its ambitions beyond 2020, which may include sending a man to the moon, China has also been advancing its "Chang'e" exploration programme. This entails satellite launches to explore the lunar surface.

"Likely within the next five to eight years China will also make a decision as to whether to pursue a human lunar mission," Johnson-Freese said.

Meanwhile the United States, after retiring its space shuttle fleet, is also developing a new rocket and technologies to place a man on an asteroid or on Mars, she said.

"Both countries are moving forward, but not in a competitive path," she said.

China's space programme remains far behind the Americans. This was highlighted by the fact that the manual space docking trumpeted by the Chinese on the Shenzhou-9 mission was done by the Americans in the 1960s.

"If there is a space race going on, I think it is in Asia," Johnson-Freese said, pointing out that India had also set ambitious goals.

July 1, 2012 by Boris Cambreleng
(c) 2012 AFP_PHYS.ORG

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Killer dog's owner fined and charged again

Elaine Soon Sien Ling outside the court, while her dog Beacon is at the Selangor Veterinary Services Department pound. Pic by Syarafiq Abd Samad

PETALING JAYA: THE owner of the dog which killed an elderly jogger last month escaped custodial sentence after the court heard that the victim's family had forgiven her for being negligent in the incident.

CANINE ATTACK : OWNER OF KILLER DOG FINED RM2,000 FOR NEGLIGENCE Source: ntv7.com.my

Elaine Soon Sien Ling, 28, an accountant, heaved a sigh of relief as she could have been sentenced to a maximum of six months' jail under Section 289 of the Penal Code for being negligent with her pet.

Magistrate Mohd Nazri Omran, however, imposed the maximum fine of RM2,000.

In sentencing her, Nazri said he took into account that the victim's family had forgiven her and had retracted the police report on the incident.

Soon pleaded guilty when the charge was read to her.

According to the facts of the case, the victim, Yip Sun Wah, 74 was jogging in SS19 Subang Jaya on May 8 when the dog, a cross between a miniature bull terrier and an American Staffordshire terrier, escaped from Soon's house and pounced on Yip.

The dog, which answers to the name, "Beacon", only let go of the the victim when neighbours hit it with an umbrella and a cane.

A neighbour, who identified himself as a doctor at the scene of the incident, said Yip died at the scene.

In mitigating for a light sentence, Soon, who was unrepresented, told the court that she had gotten the dog as security measure for her retired mother who was alone at home. She said that their home had been burgled before and that when she got her dog, she had taken it to the veterinarian and it was certified as healthy.

Soon added that on the morning of the incident, she had let her dog loose in the compound but locked the gate and had shut the garbage disposal gate.

She also tendered a letter from the victim's family, who stated they had forgiven her over the incident and that they had also retracted the police report.

Deputy public prosecutor, Siti Fatimah Yahya pressed for a sentence that would serve as a lesson to the public.

Soon's father and fiancee were present in court. The accused paid the fine.

Meanwhile, the fate of Beacon, lies in the decision of the court.

State Veterinary Services Department deputy director Dr Fadzilah A'ini Abd Kadir said the dog was still in their care.

"We have not received any instructions regarding the dog," she said, adding that Beacon was healthy and free of rabies.

Dr Fadzilah said said normally, in such cases, there are three options -- put the dog to sleep, send it to the police for training, or return it to the owner.

New Straits Times Friday, Jun 29, 2012

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Nightmarish hunt for a home ?

Property consultants forecast the property market to remain slow for the rest of the year. Will the average middle-income earner be able to afford the house of their dream now?
 
COMMUNICATIONS executive Michelle (not her real name) has been house-hunting for a while now but has yet to find a property that suits her budget.

Having been in the workforce for nine years, Michelle, 33, feels it is time to buy her own house. But with the prices of residential properties in Malaysia skyrocketing over the last two years, her prospect of getting her dream home looks bleak.

“Back in 2009, my friends were telling me to buy my own place but at that time, my priority was to travel. Around last year, when I was finally ready to commit to getting a house, prices weren't what they used to be any more.

“A decent 1,000sq ft (93 sq m) apartment that used to cost around RM200,000 to RM300,000 is now RM500,000 to RM600,000. That is far beyond what I can afford,” she laments.

Soaring interest: Prospective house buyers at a property launch. — Filepic

 

From early 2010 up to the end of last year, residential properties in good locations within the Klang Valley have seen a sharp spike of between 20% and 40% in price, a trend which has caused grave concern for potential house-buyers.

But how is the scenario looking in 2012?

According to KGV International Property Consultants executive director Anthony Chua, the first half of the year has been generally quiet.

“There seems to be a breather in the residential market. It's definitely not as busy compared with the same period last year. (The number of) inquiries with us have also lessened significantly,” Chua says.

He explains that inquiries in 2012 with KGV on high-end properties (above RM2mil) have gone down by about 30% compared with the first half of last year. Inquiries on other segments (between RM1mil and RM2mil, and below RM1mil) have also gone down but not as drastically.

Reasons for this could include tighter lending guidelines set by the banks and buyers taking a more cautious approach on their investments this year.

(Following Bank Negara's new lending guidelines, which came into effect on Jan 1, loans are now approved based on net income compared with gross income previously, in addition to the need for more documentation. The new guidelines are intended to help keep household debt in Malaysia to reasonable levels.)

Chua: ‘While interest in property purchase has waned, prices are still going strong for landed property.’

Chua adds that there was a lot of speculation in the property market in the past two years, and that the market is due for a correction.

“The economic scenario is not as rosy and people are expecting things to worsen, which could be why they are hesitant to invest. And to a lesser degree, it could also be the coming general election, which is causing some uncertainties,” Chua says.

Paul Khong, executive director of property consultancy CB Richard Ellis (M) Sdn Bhd, shares similar sentiments.

“The number of buyers (for properties above RM3mil) has dropped by about half with the stricter bank-lending guidelines, which has eliminated the speculative group (of buyers).

“For properties below RM2mil, the market is relatively active with more real transactions. With the new lending guidelines in place, many investors have disappeared from the radar,” Khong says, adding that those who want to purchase their third property now will need 30% in cash for downpayment.

“So, to buy a RM3mil property, they'll need RM1mil in cash if it is their third property. Previously, RM400,000 was enough,” Khong says.

Interestingly, Chua notes that while interest in property purchase has waned, prices are still going strong for landed property.

However, sellers are seen to be less aggressive this year.

“They seem to be less demanding and more willing to accommodate. Last year, they would have said this is my price', and would have refused to budge,” he says.

Property consultants forecast the property market to remain quite slow for the rest of the year.

Khong: ‘The number of buyers (for properties above RM3mil) have dropped by about half.’ >>

Even so, for average middle-income earners such as Michelle, the current prices of properties in various locations within the Klang Valley (refer to chart) leave her with few options.

“I don't even dare look at landed property any more. Even apartments at relatively good locations cost RM400,000 and up.

“For my budget, an apartment around RM200,000 to RM350,000 would still be quite comfortable,” says Michelle, who currently lives with her family in Petaling Jaya.

A mass communications graduate from the United States, Michelle draws a salary of about RM5,000 a month, which goes into paying for her car loan, household expenses, utilities, and credit card bills.

“Household expenditure doesn't just cover grocery shopping. I also have to pay for medical bills, car maintenance and repairs as well as give my parents some money too,” she says.

“As banks are now looking at net income, the loan amount I qualify for is unlikely to be enough for me to even afford an apartment in the Klang Valley.

“Sure, you can still get cheaper houses in places like Bukit Beruntung, but it's just too far away. My life is here. At the rate property prices are going, the thought has crossed my mind that I may never be able to afford a place of my own.”

It's not just within the Klang Valley that property prices have escalated.

Early last month, it was reported that residential property prices in Penang have shot up by more than 25% over the past five years.

Condominium units in Batu Ferringhi, Tanjung Bungah and Gurney Drive, with sea-front views, are being sold at astronomical prices, in some cases beginning with RM2mil for a 1,000 sq ft unit.

Houses which cost about RM500,000 in 2007 now cost RM800,000 an increase of about 30%.

Chang: ‘An entire generation of young adults could be locked out of property investments.’

Raine & Horne Malaysia director Michael Geh was reported as saying that the increase was among the steepest in the Pulau Tikus, Gurney Drive, Tanjung Tokong, and Tanjung Bungah residential neighbourhoods, which experienced a 25% increase in prices of condominium units.

Other areas where prices of condominium units and terrace and semi-detached houses have shot up by at least 25% are Bayan Baru, Sungai Ara, Minden Heights and Batu Maung.

Medium-range housing schemes in George Town neighbourhoods of Perak Road, MacCallum Street, Jelutong Road and Sungai Pinang have also not been spared an apartment located in such a neighbourhood cost RM180,000 in 2007 but is now RM250,000.

It is precisely with this concern in mind that the National House Buyers Association (HBA) has come up with a 10-point proposal to the Government, to find solutions which it claims will hopefully bring prices down.

Among the proposals are for the Government to unlock its land banks in various locations and give priority to affordable housing projects rather than high-end properties.

The HBA is urging the Government to take the lead in developing affordable homes and not leave it to property developers.

It has also proposed that those who buy homes under the affordable housing projects (with a proposed price range of RM150,000 to RM300,000) be barred from selling their property until after 10 years. Before the 10-year period is up, they should only be allowed to sell the house back to the Government.

The association has also proposed that the Government impose a higher stamp duty and real property gains tax as well as tighter mortgage rules for those buying a third and subsequent properties.

HBA secretary-general Chang Kim Loong notes that with the way prices are climbing, the majority of young working adults will not be able to afford to buy a home.

“I'm talking about young people from around the age of 25 to 35 years old, with an average income of about RM3,500 per month.

“The rule of thumb is that a third goes into paying for your home.

“But with RM1,000, many will still not be able to afford it. The consequence of this could be that an entire generation of young adults could be locked out of property investments,” he explains.

A question that needs to be asked, however, is whether HBA's proposal for “affordable housing scheme” by the Government will be able to meet the needs of the urban middle-income earners such as Michelle.

“There are several factors to consider. The location, for example,” Michelle says.

“If the design and quality is decent, then yes, I am willing to consider it. But this doesn't mean we have to settle for bad quality homes, with cheap construction materials.”

BY LISA GOH lisagoh@thestar.com.my

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Four British banks to pay for scandal!

LONDON: Britain's four biggest banks have agreed to pay compensation to customers they misled about interest rate hedging products, following an investigation by Britain's financial regulator.

The Financial Services Authority (FSA) said yesterday it had reached an agreement with Barclays, HSBC, Lloyds and RBS to provide appropriate compensation following an investigation into the misselling of the products.

The FSA said it found evidence of “serious failings” by the banks and added: “We believe that this has resulted in a severe impact on a large number of these businesses.”

The finding by the FSA of misselling could lead to compensation claims ranging from many millions to several billion pounds from small companies which bought them.

It is the latest in a string of misselling cases that have plagued the financial services industry for over two decades. Banks are already set to pay upwards of £9bil (US$13.96bil) in compensation to customers for misselling loan insurance.

The news will compound problems for a sector that was hit hard on Thursday by news of a record US$450mil fine levied on Barclays for rigging interest rates.

The FSA said the banks had agreed to compensate directly those customers that brought the most complex products.

The products range in complexity from caps that fix an upper limit to the interest rate on a loan, through to complex derivatives known as “structured collars” which fixed interest rates with a bank but introduced a degree of interest rate speculation.

The banks have agreed to stop marketing “structured collars” to retail customers.

The size of the likely compensation was not disclosed but Lloyds issued a separate statement saying it did not expect the financial impact from the settlement to be material. - Reuters

Myanmar warns Suu Kyi to stop calling nation Burma, a British colonialism legacy

 YANGON: Myanmar’s authorities have ordered opposition leader Aung San Suu Kyi to stop calling the country “Burma”, its colonial-era name widely used to defy the former junta.

Myanmar pro-democracy leader Aung San Suu Kyi visits the Louvre Museum on Friday, June 29, 2012 in Paris. Myanmar authorities sternly urged Suu Kyi to stop calling the country 'Burma' and start using the name 'Myanmar.' (AFP Photo/Fred Dufour)

The old regime changed the country’s official name two decades ago to  Myanmar, saying the term Burma was a legacy of British colonialism and implied  the ethnically diverse land belonged only to the Burman majority.

Suu Kyi and her National League for Democracy (NLD) party vigorously  opposed the change, decrying it as a symbolic step by the generals towards  creating a new country.

Berating her for using the name “Burma” during landmark recent visits to  Thailand and Europe, the Election Commission accused Suu Kyi and party members  of flouting a constitution they have vowed to uphold.

“As it is prescribed in the constitution that ’The state shall be known as  The Republic of the Union of Myanmar’, no one has the right to call (the  country) Burma,” it said in a statement, published in state mouthpiece The New  Light of Myanmar.

“Daw Aung San Suu Kyi called Myanmar ’Burma’ in her speech to the World  Economic Forum in Thailand on 1 June, 2012,” it noted.

“Again, Daw Aung San Suu  Kyi called Myanmar ’Burma’ in her speeches during her Europe tour.”

“Daw” is a term of respect in Myanmar.

Global leaders also face a dilemma of what to call the country, which is  emerging from decades of army rule under the guidance of reform-minded Prime  Minister Thein Sein.

Britain’s David Cameron calls it “Burma” while recent speeches by US  President Barack Obama also referred to its colonial name.

But his Secretary of State Hillary Clinton chose a more diplomatic path on  a trip to the nation in December, employing the term Burma but saying it  sparingly, generally preferring to dodge controversy by saying “this country.” -- AFP NST

Hong Kong 15th aniversary on return to China

 Maintaining a China identity

Hong Kong SAR chief executive-elect Leung Chun-ying takes over the reins of government tomorrow and throws a challenge to the city to really call China its home.

TOMORROW, the people of Hong Kong and the mainland Chinese will celebrate the 15th anniversary of the return of Hong Kong to China.

Days ahead of the momentous celebration that will be attended by Chinese President Hu Jintao and featuring fireworks, military parade and parachute jumps, Hong Kong Special Administrative Region (HKSAR) chief executive-elect Leung Chun-ying threw a challenge to the city to really call China its home.



During an interview with the Chinese media late last month, Leung said that since the handover in 1997, the city dwellers had developed a sense of belonging with their motherland but it would take a little longer before remnants of the British influence disappear entirely.

New leader: Leung speaking to a group of low-income families at the rooftop of an old residential building in Sham Shui Po District, Hong Kong, in this file photo.

 

“There are two meanings of the handover. First, Hong Kong was legally returned to China and the Chinese government retained the administrative power of Hong Kong by establishing the HKSAR and passing the Basic Law for the ‘one country, two systems’ and ‘Hong Kong run by Hong Kong people’ model,” the People’s Daily quoted Leung.

“On the other hand, Hong Kong was under British control for 100 years. More needs to be done to rid that influence on people.”

For instance, he said, some Hong Kong people would still say that they were “leaving for China” instead of “going to the mainland”.

He cited an example where a Hong Kong saleswoman told her friend on the mainland that she had visited Beijing on her friend’s National Day, instead of referring to the celebration as hers, too.

“These people may not have any political stance when they speak that way. This is probably due to decades of British rule. We will keep on educating our people so that they can better understand the country. But we cannot rush it; it has to be done step by step,” he said.

Leung will begin his tenure as the new boss of the city for a five-year term starting tomorrow, along with his government line-up of Carrie Lam Cheng Yuet-ngor, John Tsang and 18 others.

Besides working on better interaction between Hong Kong and mainland Chinese people, the new HKSAR government has to tackle social problems such as the influx of mainlanders which puts a strain on the city’s healthcare and housing resources.

On the economy, Hong Kong will have to work around the central government’s supporting policies to maintain its competitiveness and improve its people’s livelihood.

In its editorial, the Hong Kong-based Sing Pao daily said the people of Hong Kong had mixed emotions and experienced ups and downs in the last 15 years, but the city was heading in the right direction under the “one country, two systems” policy.

“It was unavoidable that we had to ‘cross the river by touching the stones’. In the past 15 years, we have seen numerous conflict of opinions, political hostility and delayed reforms. No matter how many protests and demonstrations were staged, the majority of residents remain united in steering this boat named Hong Kong forward,” it said.

Oriental Daily hoped that Leung would “clean up the mess” left behind by his predecessors Tung Chee-hwa and Donald Tsang, and, turn around the economy and stabilise the social situation.

“During elections, Leung Chun-ying pledged to introduce a financial development unit if he was elected. Now he has walked the talk by setting up a committee headed by executive council member Laura M. Cha to form the objectives, functions and operations of the unit.

“Leung should invite financial advisers and economics experts to give their input on how to solidify Hong Kong’s status as the world financial centre and to counter future financial crises. Let us see if the Leung administration can lead Hong Kong on a new path of development,” the newspaper said.

Recently, Beijing announced a package of supporting policies such as issuing bourse-traded funds listed on both the Hong Kong and mainland stock markets, encouraging foreign investors to use the yuan for trade settlement in the city and easing restrictions on small businesses run by Hong Kong residents in the mainland.

Peng Qinghua, director of the liaison office of the central government in HKSAR, told China Daily that Beijing had played a key role in maintaining Hong Kong’s prosperity by keeping its promise of autonomy for the HKSAR government.

“The economic achievement in Hong Kong today is the result of its people’s ability to take the opportunities, and their flexibility and diligence. However, it could not have happened without the support of its motherland,” he said.

Peng hoped that the people from both sides would continue to respect their differences, improve communications and deepen cooperation in order to achieve real unity.

MADE IN CHINA By CHOW HOW BAN
hbchow@thestar.com.my

PLA gaining trust in HK

Shortly after being stationed in Hong Kong, Brigadier Zhang Jie said he was asked by a city official why were his soldiers "so invisible".

Soldiers of People's liberation Army pose for photograghs at teh Stanley barracks in Hong Kong earlier this month. Edmong Tang/China Daily

The People's Liberation Army troops had been at the garrison for a month, following the return of Hong Kong to China on July 1, 1997, and many residents expected them to have a high-profile presence.

"I told the official that the reason we were invisible was because we only leave the base when necessary, to not disturb residents," Zhang said ahead of the 15th anniversary of the handover.

This is a policy that stayed unchanged for 15 years.

The garrison, which has roughly 8,000 troops spread over battalions of infantry, engineers, airborne staff and navy personnel, is housed in several bases across the special administrative region.

Due to some differences between the mainland and Hong Kong, which the United Kingdom controlled for more than a century, and the "one country, two systems" policy, PLA troops stationed adhere to stricter rules than those in other parts of China.

"We have to be committed to strict discipline to gain the trust of Hong Kong citizens," said Zhang, who heads the garrison's infantry division.

Liang Yuejia, deputy director of the garrison's political department, explained that there was a lot of suspicion among residents at first that soldiers would get involved in local affairs, such as reacting to street protests.

"But we didn't. Unless the protesters illegally entered our barracks or threatened our lives, we did not resort to contacting the police," he said, adding that they respected such activities according to local regulations.

Even when anti-communist literature was thrown over the walls or staff received harassing calls from political groups, officials said they did not react.

That policy of noninterference has over the years helped the garrison gain a good image among residents.

A poll of 1,006 people by the University of Hong Kong last year found that only about 2 percent of those polled had a negative opinion about the garrison.

"Developing a good relationship with citizens has been the key," said Lieutenant General Zhang Shibo, commander of the garrison. "I think that mission has been accomplished."

Major Wu Qiong, a battalion commander with the garrison's communication station, added: "Before 2000, Hong Kong citizens usually kept their distance. But after years of interaction, many now often say hello. I guess that's because they are aware of our decent style of working and strict discipline."

Increasing openness

Compared with the "invisibility" of the early years, the garrison has greatly increased its openness to the outside world in recent years.

Besides regular training and exercises for army personnel, officials have also been promoting links between Hong Kong and the mainland through various activities, said Lieutenant General Zhang Shibo.

The troops have actively participated in public activities, such as planting more than 50,000 trees, donating 2.5 million milliliters of blood and helping more than 2,600 elderly people and children in care homes.

The garrison has also opened its barracks 23 times to visitors, receiving around 469,000 local people, and held summer camps for children.

The last open day, on May 1, attracted 37,000 visitors, far more than the 28,000 expected and extra free admission tickets had to be distributed. Some people waited in line overnight to get a ticket.

During the open days, guests can view the military facilities and watch soldiers perform combat skills and motorcycling stunts, including drills by the first female special forces of the PLA army.

"One of the reasons why we are gaining increasing recognition in Hong Kong is that the openness of the barracks provides local people with an opportunity to know more about us, as well as a platform for us to serve them," said Lieutenant General Wang Zengbo, political commissar of the garrison.

The activities organized by the garrison also present the PLA, the Communist Party of China and the mainland to Hong Kong residents in a proper way, Wang said. "Their national identity and patriotism have greatly increased," he said.

The garrison has organized seven military summer camps for around 1,200 local teenagers, six exchange activities with 1,600 students from 12 local universities and a military camp for college students. The troops also visited the University of Hong Kong for the first time in 2011 and talked with students.
A total of 215 teenagers participated in the military summer camp in 2011, and the number is expected to reach 260 this year.

"Despite the increase, every school can only send one student, while dozens of others actually want to come, so we'll continue enlarging the camp's scale in future," said Wang.

Tung Chee-hwa, former chief executive of Hong Kong, said the camps influence many families and hundreds of people even though there are only about 200 participants every year, and they also would influence the participants' whole life even they only last for 15 days. 

In 2010, Hong Kong saw an upsurge of young people wanting to enlist in the military. Most of the 4,000 local young people who signed up for enlisting participated in the garrison's exchange activities and military camps.

The summaries written by military camp participants revealed that the 15-day interaction with the garrison provided them with a chance to learn more about the troops, socialism, the Communist Party of China, as well as the strength of the PLA and China, Wang said.

Boosting defenses
With the garrison enjoying a good image in Hong Kong, Zhang Shibo said the focus has shifted from public relations to bolstering military defense.

The mission of the garrison is mainly to exercise China's sovereignty over Hong Kong, safeguard social stability and provide disaster relief and defense campaigns. However, military training is also a priority.

"Since 2007, we have invested millions to upgrade our army's equipment, navy and air force," said the garrison's commander.

Based on Hong Kong's strategic features, the PLA garrison added a special forces unit, an armored battalion and a chemical defense battalion. It has also been equipped with reconnaissance planes, armed helicopters and air defense missiles.

Soldiers receive regular training. More than 20 drills were held in Hong Kong over the past 15 years.
"We aim to test our basic military strength, commanding and organizing capabilities through joint drills," Zhang Shibo said.

The infantry brigade, the garrison's pillar force, has ranked at the top for three years in the military competitions in the adjacent PLA Guangzhou Military Area Command, which has the administrative control of the garrison.

Speaking of the possible challenges the garrison faces, Brigadier Zhang Jie said the garrison "needs to be prepared to tackle possible regional conflicts at all times".

Contact the writer at zhaoshengnan@chinadaily.com.cn

Yu Daimin in Hong Kong contributed to this story.