Would the 3 Japanese wise men invited by China help ties with Japan?

SINCE last month, tensions over the disputed islands in the East China Sea, known as Diaoyu to China and Senkaku to Japan, have noticeably declined, largely as a result of conciliatory words and actions by Japanese political figures visiting China.

The first was by Yukio Hatoyama of the opposition Democratic Party of Japan, who was prime minister in 2009-2010 and who had advocated closer ties with China while in office. Hatoyama took issue with Japan's position of denying that there was a territorial dispute, saying "if you look at history, there is a dispute".

The former leader also visited a memorial in Nanjing honouring those who were killed in 1937 and apologised for "the crimes that Japanese soldiers committed during wartime".

Hatoyama's visit was widely publicised in the Chinese media, which published pictures of him and his wife at the Nanjing Massacre Memorial bowing in silent tribute to the dead.

The normally nationalistic Chinese newspaper Global Times declared editorially: "Hatoyama's words and deeds these days show that in spite of the tough environment, forces which are friendly to China have not disappeared."

Shortly after Hatoyama's departure from China, Natsuo Yamaguchi, leader of the New Komeito Party -- a coalition partner of the ruling Liberal Democratic Party -- arrived in China, carrying with him a letter from Prime Minister Shinzo Abe for Xi Jinping, the new leader of the Communist Party of China.

Yamaguchi was received by Xi on Jan 25, and, aside from passing over the letter from the prime minister, he also suggested that the territorial dispute be shelved for now and to let future generations deal with the issue.

Xi no doubt knew that the Japanese politician was paraphrasing the late Chinese leader Deng Xiaoping who, while visiting Tokyo in 1978, famously said, "Our generation is not wise enough to find common language on this question. Our next generation will certainly be wiser. They will certainly find a solution acceptable to all."

Alas, no solution is yet in sight and the best policy is to put the dispute back on the shelf.

Yamaguchi also suggested a summit meeting between Abe and Xi, and the Chinese leader responded that he would consider it seriously if there was a "proper environment".

Xi also said that China wanted to promote a "strategic relationship of mutual benefit" with Japan.

Soon, a third influential Japanese political figure arrived, another former prime minister, Tomiichi Murayama, whose visit, like the other two, contributed to the establishment of an improved environment.

It was Murayama who, while in power, issued an apology on historical issues that was widely hailed in Asia.

The visits by these three Japanese figures have contributed to a lowering of tensions, making it possible to envisage a thaw in China-Japan relations.

What is significant is that these three men were all invited by Beijing, which of course had a good idea of what they were likely to say and do. That is to say, without denigrating their contributions to the lessening of the impasse, the improved atmosphere of the last few weeks was largely the result of initiatives taken by China.

Japan, too, clearly wants to keep tensions low. Abe has now made it clear that he endorses the Murayama's statement, although there is still some talk of making a new statement "suitable to the 21st century". But there is unlikely to be any backtracking.

It is imperative at this stage that both Japan and China recognise the delicate political environment in the other's country. Each should rein in its own aggressive nationalistic forces.

It is also necessary for each side not to say or do anything that may be humiliating or embarrassing to the other side. Threatening to fire "warning shots", for example, is not helpful.

A lot of damage has been done to China-Japan relations. It will take time for the relationship to heal.

When Abe became prime minister for the first time in 2006, he went to China on his first overseas visit to mend relations damaged during the premiership of Junichiro Koizumi, who insisted on visiting the Yasukuni Shrine each year.

This led to a dramatic improvement in relations, with Premier Wen Jiabao making an "ice-melting" visit to Japan in 2007, followed by a presidential visit by Hu Jintao the following year.

Another China-Japan summit will be indispensable if ties are to be rebuilt.

This, however, cannot take place until the necessary groundwork has been laid. Both sides will have to work hard at this. And flexibility should be the watchword.

The row over the disputed islets, known as the Senkaku in Japan and the Diaoyu in China, are seen in this file handout photograph taken on a marine surveillance plane B-3837 on December 13, 2012, and provided by the State Oceanic Administration of People's Republic of China. A long-simmering row over the East China Sea islands, has noticeably declined, largely as a result of conciliatory words and actions by Japanese political figures visiting China. Reuters pic 

By Frank Ching New Straits Times

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The Philippines broken ranks with Asean

HIGH STAKES: In its zeal to take on China's claims in the South China Sea, the Philippines has alienated itself
 

The official map of the Philippines labels the South China Sea as the West Philippine Sea and includes Sabah.

By  initiating an arbitral proceeding against China, the Philippines has upped the ante in the South China Sea. Manila says it is left with no choice but to take Beijing to arbitration after exhausting all remedies. However, many see Manila's action as a desperate act -- a publicity stunt to regain international prestige following the Scarborough Shoal fiasco in April last year.

Manila's request for an arbitral award opens up a can of worms, especially when its Regime of Islands claim (to the Kalayaan Islands and Scarborough Shoal) under its 2009 Baseline Law is contestable under international law.

Incidentally, its new official map that has renamed the South China Sea as the West Philippines Sea has re-incorporated Sabah, which is sure to reopen old wounds.

People who live in glasshouses should not throw stones, as they will expose not only the throwers' hypocrisy but also vulnerability.

No one doubts that Manila is fed-up with Beijing's intransigence. Lately, the Philippines has mounted diplomatic and political offensives in the South China Sea in a hope to get the United States and the international community to sanction China. Unfortunately, following a rebuff by Washington, the offensive failed to undermine China, the Goliath who was close to former president Gloria Arroyo, now under house arrest.

As a domestic political agenda, Manila's unilateral legal proceeding is likely to be futile again. Its success record in international arbitration has been dismal. For example in 1927, the US, acting on behalf of Manila, failed to convince judge Max Huber that the island of Palmas belonged to the Philippines. The judge awarded the ownership of the island (now known as Miangas) to Indonesia, although the island is within the 1898 Treaty of Paris Limits.

In October 2001, the Philippines sought permission to intervene as a non- party in the case involving the sovereignty of Pulau Ligitan and Pulau Sipadan. the International Court of Justice (ICJ) rejected (14 to 1) the request.

China, the world's second largest economy and a permanent member of the United Nations Security Council, has said no to arbitration proceedings. Without its consent, it is unlikely for the tribunal to act; furthermore, the tribunal may lack jurisdiction to hear the case.

Manila has insinuated that Beijing can no longer hide behind its declarations under Article 298 of the UN Convention on the Law of the Sea (UNCLOS). In 2006, China declared, "it does not accept any of the procedures provided in Section 2 of Part XV of United Nations Convention on the Law of the Sea with respect of all categories of disputes...", including sovereignty issues.

Manila says this proceeding against China is not over sovereignty. Yet, the notification statement implies the contrary.

Manila wants the proposed tribunal to determine the legality of China's nine-dash line of 1948 and to determine the legal status of 10 features that China has occupied in the South China Sea (mainly in the Spratlys) as either "islands or rocks". These issues are jurisdictional in nature. The nine-dash line relates to jurisdictional and sovereignty issues.

The Philippines brings the case to the tribunal under UNCLOS. Those familiar with jurisdictional claims in the South China Sea are aware of the nine-dash line, published in 1948. This means the line has preceded UNCLOS by thirty-four years; UNCLOS came into force in 1996.

The only way for UNCLOS to have jurisdiction over the case is to give it a retrospective power, which arguably constitutes an abuse of rights and goes against the legal principle of good faith (Article 300 of UNCLOS).

The unfortunate omission of the applicable law under Article 38 of the ICJ Statute in the notification statement has significantly weakened Manila's position.

I also find it puzzling for Manila to ask the tribunal to "require China to bring its domestic legislation into conformity with its obligations under UNCLOS".

On the diplomatic front, Manila has garnered zero support from the claimant parties.

Their silence results possibly from disagreement with the manner the Philippines handled a vital matter in the light of Statement on Asean's Six Point Principles on the South China Sea of July 20 last year.

Moreover, Manila's objection in May 2009 to the Joint submission to the UN Commission on the Limits of the Continental Shelf is still fresh in the minds of Hanoi and Kuala Lumpur.

Is Manila telling the world that it has broken ranks with Asean?

The way forward is not to break ranks but to mend fences with China.

by Dr BA Hamzah New Straits Times

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Tensions in South China Sea: US won’t take sides...
Manila and ASEAN: Upping the ante on the South China Sea
Overhyping the South China Sea 

How much Any Pow be given in Chinese New Year?

A NETIZEN from Singapore has triggered a debate on the amount of ang pow one should give family members and friends, reported China Press.

The netizen said people should give between S$88 and S$288 (about RM211 to RM690) to their parents, and for their children they should give from S$50 (RM120) to S$188 (RM450).

The netizen suggested that they should give S$28 (RM67) to S$50 (RM120) to their nieces and nephews.

For children of a close friend, they could give ang pow worth between S$8 (RM19) and S$18 (RM46), it reported.

For other relatives and friends, they should give at least S$2 (RM4.80).

Some netizens said pegging a rate on ang pow went against the spirit of Chinese New Year as the gift of giving red packets should be from the heart.

However, some said the chart had given them an idea on the amount they should give to their family members and friends.

> Malaysian songbird Fish Leong said she planned to have a baby this year but urged the public not to pressure her, reported Sin Chew Daily.

“If there's good news, I will let you know,” she said, adding that she would celebrate Chinese New Year in Taiwan with her Taiwanese husband Tony Zhao's family.

Leong said she would come back to Malaysia to visit her family members only after Chinese New Year.

Leong married Zhao in 2010 and since then the media had been asking her about her plans to have a baby. 

- The Star/Asia News network

Beware of rogue lawyers in Malaysian legal system

They boast of connections with retired judges and being able to fix cases

KUALA LUMPUR: A group of lawyers is bringing disrepute to the Malaysian legal system with claims of being able to “fix” commercial cases.

They are known as the “Dream Team” in the circle of retired gentlemen judges because these lawyers “play ball” with their “coach”, a retired judge, to win big.

Among litigation lawyers, they are referred to as the “syndicate” or “cartel”.

Malaysian Bar president Lim Chee Wee confirmed their existence.

“We are aware of a syndicate of rogue lawyers who boast of mastering the art of influence and inducement outside the courtroom in addition to advocacy in the courtroom,” he said.  “Mercifully, it's a small group.”

He added that the commercial cases they boast of being able to influence include disputes over business contracts and family property and company disputes between shareholders and directors which usually involve millions of ringgit.

Lim, however, stressed: “The vast majority of judges and lawyers are honest, and it is only a few rotten apples who ruin the reputation of the rest.”

He was also doubtful about many of the claims they made, suggesting that “most of their boasts might be mere puffery to trick clients into paying more in legal fees”.

But for some years now, litigation lawyers have been indignant about “the cartel” and the connections they see between some retired judges and lawyers.

They say a retired judge acts as puppet master and a former court officer at times comes in as facilitator.

Litigation lawyers interviewed on the modus operandi of the syndicate gave these scenarios:


> A client contacts a retired judge who then gets in touch with a serving judge.

> While in office, the former court officer would arrange for access to certain judges.

> The former court officer takes advantage of the practice of registrars writing up case notes for appellate judges by suggesting how to skew them.

Asked what action the Bar Council had taken, Lim said it had told Tun Zaki Azmi when he was Chief Justice and his successor Tun Arifin Zakaria of reports that “a few judges received phone calls from retired judge(s) regarding pending cases, allegedly with a view to influencing their decision or grounds, and naturally these right-thinking judges found such approaches to be offensive.”

“The Chief Justices have taken action and I am not aware of any more similar incidents.”

Lim said he had also raised with the Chief Justice and President of the Court of Appeal the Bar's concern over reports that a few rogue lawyers may be influencing registrars who prepare case notes/briefs for appellate judges “with the view of having the contents lean in their favour”.

When contacted, a sitting judge said: “The solution is for all appellate judges to carefully read the written submissions of both counsel and not rely on the case notes.”

Lim said that following media coverage of corruption in the legal system, the council has been receiving information from Bar members and the public.

“We will review the information and if there is prima facie evidence, we will lodge a complaint with MACC (Malaysian Anti-Corruption Commission).”

Lim added: “We are also working closely with MACC to investigate corruption among lawyers who bribe officers/employees of clients to obtain legal work. This is perceived as a rampant practice at financial institutions.

“We hope that the Association of Banks Malaysia will consider assisting MACC on this.”

He urged anyone with any information on the who, what, when and where of corruption to write to president@malaysianbar.org.my or contact +603 2050 2013.

By SHAILA KOSHY koshy@thestar.com.my

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Missing girls found living with foreign boyfriends Nepalese faces charge

Sisters were found living with a Nepali believed to be one of the girls' boyfriend

Safe and sound: Poh Fong (left) and Poh Choo being escorted to south Klang police headquarters. 

KLANG: Two teenage girls who were reported missing last Wednesday have been found.

Police found Chen Poh Choo, 15, and her sister Poh Fong, 13, at about 2pm in Taman Sentosa, living with a Nepali believed to be the boyfriend of one of the girls.

South Klang OCPD Asst Comm Mohamed Mat Yusop said the girls had been sent to hospital to receive medical attention. “It is not known yet why the girls left their home.

“We have yet to investigate the foreigner. Let the police investigate and avoid listening to hearsay,” he said, adding that the girls had records of skipping school in the past.

The girls, who were present at the news conference, shook their head in refusal when ACP Mohamed asked if they wanted to go home.

He added that the girls would either be spending the night at the hospital or at a shelter. Reporters were barred from speaking to the girls.

Poh Choo and Poh Fong were reported missing at midnight on Thursday after they were last seen at noon on Wednesday before they walked to school from their house in Pandamaran Jaya.

Outside the station, the girls' father, Chen Fook Chai, said he had yet to see his daughters.

“The police told me my daughters have been found but I have not met them,” he said.

He admitted that his girls had disciplinary problems in the past but denied abusing them.

“They skipped school and had some disciplinary issues but nothing serious,” Chen said.

According to a source, the Nepali was detained by the police at 5pm yesterday.

The man, in his 20s, was believed to be living alone at a shoplot in Taman Sentosa for the past few months. His job is, however, unknown.

- By A. Ruban/The Star

Nepalese may face rape charge

KLANG: A 32-year-old Nepalese man who allegedly had sex with one of the sisters reported missing is being investigated for statutory rape.

South Klang OCPD Asst Comm Mohamed Mat Yusop said medical examinations revealed signs of penetration on the older sister.

“We believe the 15-year-old girl had sex within the time she disappeared last Thurs­day,” he told reporters here yesterday.

“We have since arrested the man, believed to be her boyfriend”.

ACP Mohamed said he was a general worker at a shopping outlet in Klang and would be remanded for two weeks.

He will be investigated under the Immigrations Act and for statutory rape.

Police found the missing girls at the Nepalese’s house in Taman Sentosa here at 2pm on Monday following a tip-off.

ACP Mohamed said investigations revealed that the girls had run away to be with their boyfriends.

When contacted, the girls’ father said they were getting impatient and wanted to see their daughters.

“I just want to know when I can see them again,” he said. “My wife waited at the hospital until 1am (on Monday) to meet them.”

Despite the latest revelations, he did not believe that they ran away to stay with their boyfriends, and wanted to know where they went.

In a separate case, ACP Mohamed said a gang of four men broke into the house of a 30-year-old IT officer in Bukit Jati and robbed the family of four at knife point.

“The gang members wore masks, gloves and had machetes,” he said, adding that they gained entry by cutting through the kitchen grille at 3.45am on Monday.

They made off with RM2,000 cash, RM7,000 worth of jewellery, four mobile phones, three watches and one laptop, he said.

“At 3.45pm the same day, a team of policemen arrested an Indonesian man in front of a money changer in Taman Sri Andalas. He is suspected to be part of the gang,” he said.

Police are looking for the other three men and believe they are responsible for seven other robberies in Banting and Klang.

By SHAUN HO shaunh@thestar.com.my

How to save when you’re broke?

Saving money is not impossible when you're in financial dire straits

SAVING money can be a tall order for a lot of people but it becomes near impossible when you're broke or financially challenged. Still, it's not a position you can't come out of.

Here are some simple steps to follow to help you save despite being broke.

Set up a budget plan

If you're broke and trying to save money, than it's best to come up with a budget plan, says Standard Financial Planner Sdn Bhd's Jeremy Tan.

“If you're broke, then you need to evaluate what you're doing wrong.

“Have a budget plan. Look at what assets you have? “Perhaps you could try liquidating some.

“But even before you're broke, you should have contingency or emergency funds,” he tells StarBizWeek.

Keep working

MyFP Services Sdn Bhd managing director Robert Foo believes that if a person is broke, it's imperative for one to continue working or seek a new form of employment - as soon as possible.

“If you have a job, then you should continue working.The experience that you already have would be invaluable.

And what happens if you've lost your job or unemployed? All is not lost, says Foo.

“Don't feel hopeless. You've got skills and should be able to have contacts that can help you find a new job.

“If you have a job and you feel it's unstable or that you might lose it, then you should ensure that your resume is with headhunters, to ensure your income position remains as stable as possible.”

Tan also points out that age can be a factor. “Of course if you're young, you'll be able to take on multi-tasking jobs. If you're old, then you might need to go easy on the job load,” he says.

Compare prices

Self-confessed shopaholic PS Tan says that when she's “a little bit behind on her credit card payments” and needs to cut down on her spending, she decides to be a little bit more “choosy” with her shopping.

“When I know I need to cut down on my spending, I go several hypermarts or supermarkets and compare prices first before eventually purchasing.

“Also, if I have been using items that were expensive, I just choose to buy ones that are cheaper.
Be open to new brands and products,” she says.

Eliminate costs

While trying to save, also try to rid yourself of whatever debts you have.

“If you're broke, ask yourself if you have debts or not? Find out how you can restructure them,” says Tan.

Tan meanwhile says now would also be a good time to evaluate and consider eliminating the unnecessary financial obligations that one can do without.

“If you have a gym membership for a gym that you've not been going to for a long time, or perhaps a year's subscription for a book or magazine you've been hardly reading, just cut it off.”

Live within your means

If you're broke, than you're going to need to need to change your lifestyle - immediately!

“If you're broke, then you're not going to be able to sustain the lifestyle you've been living.

“The fastest way to solve this is to cut down on your expenses,” says Foo.

He reiterates that one could find a part time job or even a second one to curb debts quickly.

Eric Lee (not his real name), a marketing executive who was laid off for six months, says he was forced to cut down on his lavish lifestyle when he had difficulty finding a job.

“I had to do a lot of things differently.

“My car got repossessed and I had to move out from where I was staying because I couldn't afford the rent.

“I moved in with my parents and also had to rely on public transport to go where ever I needed to, especially for job interviews.

“If I was lucky, sometimes I could drive my parents' cars.

“When I did get a job, I initially still had to live within my means as I was still unable to stand on my own feet. This meant taking home-cooked meals to work.

“Initially, I also had to use t-shirts from friends as I couldn't afford new ones.”

By EUGENE MAHALINGAM
eugenicz@thestar.com.

Related post:

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Why and how to complain?

Done right, complaints help us to improve and accommodate

I AM not the type who usually kicks up a fuss about, say, service at a restaurant. It has to be pretty bad before I show my displeasure.

But really, I am not sure that it's quite the right way to be.

If someone is doing something wrong, is it wrong to complain? Certainly not, especially if the intention is not just to vent but also to let the person know that he is doing something wrong.

You may have heard the quote “The biggest room in the world is the room for improvement.” I don't know who said it and I could not verify it on the Net. But that quote strikes a wonderful chord that resonates within.

A complaint properly made helps to improve and that is its greatest strength. But its full benefit depends on why and how the complaint is made, and, importantly too, the spirit in which it is received.

But first, a complaint has to be genuine, not just to take the mickey out of someone whom you don't like for whatever reason. It has to be rooted in a genuine dissatisfaction.

And then it has to be made to the right person - someone who can actually do something about it. And service providers need to ensure that there are proper channels for people to make their complaints and to receive feedback.

We receive our fair share of complaints too. Over the year past, there have been many e-mails sent in response to my columns. Our analysis shows the complaints were centred around three main areas yes, crime and associated with it is corruption. The third area dear to the heart of all Malaysians is of course education.

Let's take the crime rate, and the incessant complaint about the incidence of crime and how it could not have come down despite the statistics showing it has. Take it from me if you make a report about a crime it is recorded. Get a copy of the report and the report number.

If any police officer refuses a report, take his name and number down and tell.

At the risk of criticism and disbelief, let me say that SMS feedback and surveys done after the public leaves police stations show 88.7% of those who had dealings with the police in Selangor were very satisfied while 11.1% were satisfied which leaves a miniscule 0.2% less than satisfied. That's out of nearly 117,000 responses.

Now, if the public was really dissatisfied, all they have to do is to say so in their SMS. The number to send it to is 15888. Just quote the report number. This service will be extended to the rest of the country soon.

Here's another piece of information: Despite all the anecdotal complaints that police do not take down reports, we have not received even one single complaint against any officer who has refused to take a report. If that's happened to you, e-mail me valid details and I promise action.

On corruption, it is important to remember that you can make a direct report with full details to the Malaysian Anti-Corruption Commission (MACC). Report officials who ask for bribes.

If your complaint is genuine and can be established, you will also enjoy immunity under the Whistleblower Protection Act 2010. But don't go public with your information you must go directly to MACC or the relevant enforcement agency for crimes other than corruption.

On education, we need to recognise that this is a generational problem.

Changes don't take place overnight but gradually. We are doing things, as I have explained in previous columns. There is also plenty of information on this on our website.

The next stage is the finalisation and implementation of the Education Blueprint by the Education Ministry.

The public should also be aware that there is Public Complaints Bureau where complaints about the civil service and the government can be made.

But there is a steady decline here from 14,700 in 2010 to 13,366 in 2011 and 12,582 last year. I hope that decline is not due to rising apathy.

Apathy is the forerunner to hopelessness and I truly believe there is much, yes, room for improvement.

Don't give up, do let the complaints roll in but bear in mind a couple of things.

Be sure they are as specific as you can possibly make it and try to give an indication of the root cause of the problem you encountered instead of just the symptoms.

That will help the service provider rectify it. By all means complain we welcome complaints and the opportunity to do something about them. But have a heart simply because we do too.

There are many of us on this side who want change for the better as much as you do and will walk the extra mile together with you for it.

Transformation Unplugged - By Idris Jala

Datuk Seri Idris Jala is CEO of Pemandu, the Performance Management and Delivery Unit, and Minister in the Prime Minister's Department. Fair and reasonable comments are most welcome at idrisjala@pemandu.gov.my

Stay true to your dreams, get real like AirAsia, SP Setia ...

THIS is my 52nd and last article for StarBizWeek. It started more than a year ago out of a challenge from my golf buddy to communicate with local entrepreneurs in a simple and straightforward manner.

Since I am a simple and straightforward person, I believe I have carried out my duties to the letter even though most of the time, my articles did not make much business sense. But I did try to inject a business idea or concept in each weekly article which I hope did not put you in a further state of confusion.

I have not been friendly to entrepreneur wannabes who wanted to start a business without a solid business model nor having sufficient funding in place. I hate to see precious capital and talent being wasted just to please the ego of being your own boss. Starting a new business is exhilarating and exciting but closing down is painful to your pocket and your soul. Some people healed slowly and some did not recover at all.

If you really do want to be on your own, may I suggest you prepare well, seek experienced advice and stay humble. Lower your expectations and work out survival plans on worst case scenarios. If you are worse off income-wise, are you still keen to continue? Get real but stay true to your dreams.

I have great admiration for the AirAsia business model, not so much for its originality but more for its single-minded execution on its core strategy of low-cost high-volume. The whole organisation is fixated on lowering cost across all expense so that lower priced tickets can be offered continuously to secure constant high volume on an Internet platform that works tirelessly 24/7.

This business model is easy to scale across the region which adds purchasing power when negotiating with Airbus. All airlines pay the same fuel cost but AirAsia, with newer and lower cost planes, are much more fuel-efficient and if you add its competitive edge of having the lowest operating cost per seat, it now has a sustainable business model. While Ryanair dominates Europe, AirAsia will dominate the Asian airspace.

While the low-cost model has been proven successful over short quick turnaround flights of less than five hours, I was sceptical from the beginning of the viability of the long haul low-cost operator AirAsia X. True enough, the numbers did not work out for 13-hour flights to London and Paris. But it has found a profitable niche in six to seven-hour direct flights within Asia. The management has been decisive (no political interference) in pulling out of unprofitable routes and concentrating all its resources on routes that makes commercial sense.

Just imagine the potential of AirAsia X if it is able to replicate its business model operating out of Indonesia to Australia or out of Japan to the Middle East and beyond.

That's why I am looking forward to the listing of AirAsia X this year. It will be the first successful long haul low-cost airline in the world. Malaysia Boleh!

When you think you have a viable and sustainable model, stay true to your strategies and focus on executing the appropriate strategies across your entire organisation. If you are a five-star operator, make sure your organisation is able to deliver five-star services consistently to your customers.

If you have a business model that is able to scale across cultures and countries, your growth potential will reward you in multiples. Big dreams are for those who look beyond our small domestic market of 28 million people. But dreams will remain as dreams if you are not successful with your home market first. You should only replicate successful models.

If you do not find optimum success with your business model or defined strategies, be decisive and admit to yourself that it is not working as planned. Eat the humble pie and swiftly change direction or tweak your business model to find a sustainable and profitable niche where you can survive comfortably.

Do not be afraid to change and do not delay until the shit hits the fan. Unless you can go begging to the Government for more funds, it will be difficult for you to find friendly benefactors to help you then. Your business will suffer a slow and painful death and you will wish that you have not been on your own.

I have been active in the consumer product markets for the last 27 years and I have often wondered why the multinational companies make more money per dollar sales than my company. That is despite them paying higher salaries and spending more on advertising and promotions. I consoled myself then by reasoning that they had first mover advantage, better brand equity and they were smarter than me.

After looking closely at their numbers, I discovered that they have a higher selling price and a lower cost of goods which means their gross margins are easily 10% to 20% higher than mine. Their products fetch better prices because they spend more on branding and they have a lower cost of goods because they understand the supply chain system better than I did. They are brilliantly efficient in logistics and channel management.

To compete, I have to match them in all aspects. Share of voice, understanding the supply chain forward and backward and having an efficient logistic set up. But you can only compete if you have comparable margins. My business model was subsequently amended over a few years to a comparable high margin model with similar A&P spend.

Building brand equity

High margins mean lower break-even point and less pressure on volume sales. Less working capital required means less financial risk. It is easier to make a profit in a high margin business but you have to find the margins in the value chain. Apple makes 30% profit on sales but its OEM manufacturer Foxconn makes only 1.5% profit. Our telco companies make 30% on sales but their prepaid card wholesalers make a 2% gross margin. Soft dollars versus hard dollars.

To earn the soft dollars, you need to build your brand equity. Whether it is product branding or corporate branding, you must be committed and consistent in promoting your brand. Margins for great brands differ substantially from commoditised generic products or services. Differentiate or suffer low margins always.

I particularly like SP Setia as a perfect example of how to build a strong corporate brand. However just as Tan Sri Tony Fernandes is synonymous with the AirAsia brand, Tan Sri Liew See Kin is the face of SP Setia. What will happen to the SP Setia brand after Liew leaves? Can he be replaced successfully by another brilliant marketeer from the new owner, PNB? Your guess is as good as mine.

There are many key words used by management professors to describe the hectic changes in the current business environment but my favourite phrase is the concept of disruption. Technological advancements disrupts technological laggards which disrupts our lifestyle as well. Phones gets smarter by the day, from voice to SMS to data to watching Astro on-the-go. Brands come and go at the speed of disruption. What was your favourite phone-brand five years ago? Can't remember? Me too.

My thought process gets totally disrupted trying to figure out how to sell products to the Gen Y segment. They don't watch TV and they don't read newspapers. They socialise with screens and they communicate faceless through a “book”. They shop anytime in the Internet mall and they sleep in different time zones. As they are our biggest customer segment, we have to tweet them with respect. Or for the heck of it, just blog them into submission.

Gen Y and the Internet

Because of Gen Y and the Internet revolution, entrepreneurs are getting younger and younger. With a laptop, they trade anything and everything across countries like borderless pirates while prim and proper Gen X businessman worry about traditional sales team and distribution channels across the country. They collect cash in advance directly from consumers while Mr X gives credit to the trade. They have all the personal details of their customers and they are connected on a daily basis whereas Mr X can only guess that someone of a certain race, age and size has bought his products.

E-commerce will be the single biggest influence on rental rates of brick and mortar retail space. Already certain successful e-commerce products like books and music have decimated the traditional distribution channels of bookshops and music shops. The middleman's job has been taken over by Amazon.com.

Now you see other products like shoes, apparels, contact lenses etc gaining popularity on e-commerce platforms. And retail prices trending downwards much to the delight of consumers.

The only option for traditional businesses threatened by the e-commerce wave is to join them. Sephora has seen its cosmetic and fragrance sales slowing down and rental rates of their shops going up. So it set up sephora.com which has been growing very well, protecting its overall market share in the luxury segment of cosmetics and fragrance.

For traditional media companies, all the newspapers have a similar e version now. Even though visibility of e advertising revenue is still shrouded in fog, they are prepared for any eventual switch by news hungry consumers to e-consumption. While Astro offers TV couch potatoes with Astro-on-the-go mobility, Media Prima countered with Tonton, an e-content platform where you can watch missed programmes on the net and on-the-go. Mind you, these massive investment and creative efforts are made just to ensure its business stay relevant in the fast changing landscape.

Just as I give an “A” to these top private companies for their innovative business acumen, the Government and the GLCs deserve an “E” for their involvement in business. I do agree that the Government should play a major role in sensitive sectors of the economy like utilities, education and national security but to be actively involved in all businesses competing with the private sector is counter productive and in most cases a waste of public money. Lack of competition breeds inefficiency and lethargy. Enough said.

I am pleased to note that there has been a major shift of public perception towards politicians being involved in business. Politicians should stay exclusively active in the political arena if they want to avoid unnecessary accusations, nasty tweets and rumoured scandals. A clean politician who cares and fights for the people that he represents will always be voted favourably by his constituents. I read that from Dummies for Politicians.

I was born in 1960 thus I was given a blue Identity card. Having been a Malaysian since birth, I grew up in Petaling Jaya and studied in local schools and Universiti Malaya. I have worked all my life in Malaysia. My wife is Malaysian and all my three children were born in Malaysia.

So you can imagine my outrage when I am called an immigrant by some senseless and dumb politicians out to score a point or two with their supporters. As a Malaysian would say “I so angry until I cannot speak.”

But speak out you must in the coming 13th General Eelection. Choose wisely and please vote for sincere and smart candidates. Avoid wolfs in sheep skin for the sake of our children's future. Do not live to regret.

It has been a fun write for me the last 52 weeks and I must thank the StarBizWeek editorial team for sacrificing valuable space to accommodate my nonsensical and shallow articles. I hope I have given you some weekly chuckles and brought a wry smile on your face on lazy Saturday afternoons. I thank you for your kind patience. Goodbye.

The writer has decided to go e-communicado. For further nonsensical musings, stay in touch with him at thiamhock.com. You might just find some useful tips on your own.

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