US dangerous gamble in S. China Sea, tarnishing China’s image to scare ASEAN; S'pore PM keynote address

South China Sea Dispute: Tension escalates between China and U.S

US takes dangerous gamble in S.China Sea

US Defense Secretary Ash Carter on Wednesday claimed that China's actions in the South China Sea would bring countries in the region together in new ways and the US will continue to beef up its engagement in the Asia-Pacific at the increasing demands of those nations. "There should be no mistake in this, the US will fly, sail and operate wherever international law allows," Carter said.

Freedom of flight over and navigation in the South China Sea in no way means that US military planes and vessels can bluntly defy the legal construction activities of China. Based on international law, China will resist any sabotage of its island construction within its own sovereignty and will carry the activities through to the end.

Washington is taking dangerous gamble in the South China Sea. With aggressive US interference, there has been much speculation about the possibility of a US-China military clash in the region. Washington hopes this will convert into pressure on China. It may not expect a compromise from China over island construction, but hopes China would be psychologically burdened in its maritime development.

Is the China-US relationship approaching a tipping point? Some Chinese scholars hold that the US is merely flying a kite. It's testing China's determination and strategy to counterstrike US provocation. It's probable that the US military and diplomatic circles haven't yet reached a consensus. Washington will make the decision after assessing China's reaction.

Nonetheless, Washington has taken a step in displaying its hard-line stance toward China. Some Americans are highly vigilant of China's newly released military strategy white paper, but they can't be unrestrained in showing their anxiety. How could China, the world second-largest economy, neglect maritime security?

China has made it clear that relevant facilities under construction will be used for peaceful regional development and cooperation. The US suspects the sites may be turned into military outposts to confront US maritime hegemony. But those reefs and islets are China's own territory. Blocking China's legitimate actions out of imaginary worries and suspicions is a blunt violation of the norms of international relations and diplomatic principles.

At a time when China is having strong momentum of development and seeking external cooperation for implementing the "One Belt, One Road" initiative, it's unnecessary for China to divert attention by building military outposts.

The dangerous provocation of the US, driven by their illusion of the worst-case scenario, is unwise and reckless. It is pressing Beijing to act in compliance with Washington's desire. However, China won't dance to the rhythm of the US.

US tarnishing China’s image to scare ASEAN

The 14th Asia Security Summit, known as the Shangri-La Dialogue, opened Friday in Singapore. US Defense Secretary Ashton Carter and the Chinese People's Liberation Army's deputy chief of staff Sun Jianguo will both give speeches there. The South China Sea issue is expected to be the focus point of this annual meeting.

Before Carter arrived in Singapore, he made strong remarks about China, claiming that China's land reclamation in the South China Sea will push countries in this region to join hands with the US. It is becoming an increasingly prominent theme for the US in its efforts to drive a wedge into the cooperation between China and the ASEAN countries.

It is true that territory disputes exist in the South China Sea. But the region has the capability to digest the disputes gradually. The blunt interference by the US is worsening the South China Sea disputes. The risk of friction between China and the US over the sea is rising.

China is ASEAN's largest trade partner, while ASEAN is China's third largest trade partner. Cooperation between China and ASEAN is the foundation of regional prosperity. The US is losing in the competition for economic cooperation in this region. It is desperately trying to find a way to fill in this gap.

Regional countries such as the Philippines and Vietnam need outside powers to balance a regional power. The US has been taking advantage of their interests in this regard.

Now China is painted as a pursuer of regional hegemony, and the monitoring of China's attempts to artificially expand islets in the South China Sea have become landmark moves to put a hold on China's supposed hegemonic efforts.

This is a situation that Washington is pleased to see. But China and ASEAN countries will have to pay the prices for the US pivot to the Asia-Pacific.

Some are worried that China may use the expanded islets as outposts for military aggression against neighboring countries. But such confrontations are not in China's interest. China's latest "One Belt, One Road" initiative promotes developing trade with countries, including those along the "maritime silk road."

The biggest challenge for China is to find a difficult and subtle balance between its own national interests and regional peace. Some countries wish China to sacrifice its own interests for regional peace. This is unrealistic.

We emphasize an Asia of the Asians, because we believe only Asians really care about Asia's peace and stability, and still remembers the pains of past turmoil. The US will not take responsibility for Asia's prosperity, let alone sacrifice itself for Asian countries. ASEAN countries must be clear about this

Source:Global Times Published: 2015-5-29 & 30 Posted in: Editorial

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Malaysian Strata Management Act 2013 will be enforced from June 1, 2015 in Penang

Cheers for high-rise house buyers

GEORGE TOWN: The state government has endorsed the Strata Management Act 2013 (Act 757) which will be enforced from June 1.

In making the announcement, State Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo said the new Act was introduced to replace Act 663 or the Building and Common Property (Maintenance and Management) Act 2007.

It was reported that the new law allows both the landlords and tenants to be brought to court, compared to the previous Act which only allowed action to be taken against the landlord.

Gazetted in 2013 but still awaiting all states in Malaysia to endorse it, the Act streamlines the issuance of strata title and makes it faster for an owner to obtain it from the housing developer.

Besides this, it will impose higher penalties for non-compliance, put more responsibilities on the housing developer for the strata buildings and make sure the management of strata properties is more responsible.

Chief Minister Lim Guan Eng said the Act would ensure that application for strata titles, the management of buildings and the issues involved would be eased.

“The state exco decided today to give its endorsement so that there will be no disruption to application for strata titles.

“At the same time, we decided to show our willingness to cooperate with the Federal Government by endorsing the Strata Management Act which was approved by the state exco just now during our meeting.

“This means that Penang will be a part of the national implementation of the new Act,” he told a press conference in Komtar yesterday.

Lim added that the endorsement was important as around 60% of housing on the island were stratified units. - The Star/Asia News Network

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Counterfeit medicines and drugs, a public health menance !

Fake medicines may contain toxic substances that include heavy metals (e.g. aresenic) and additives (e.g. steroids). – AFP

The drugs you are taking may be fake

Counterfeit drugs are a booming criminal industry with serious consequences for public health.

Many of us have a strong faith in the power of modern medicine.

We go to the doctor or pharmacist, get the prescribed pills, take them religiously and expect to be cured of whatever ails us.

Oftentimes, this faith is justified, but in an age where fake products abound, have you ever wondered about the authenticity and quality of the drugs that you are ingesting?

According to a 2013 Emerging Markets Health Network report, 3-5% of all medicines being circulated in Malaysia were fakes.

Health Minister Datuk Seri Dr S. Subramaniam has also been reported as saying that the ministry had seized some 33,704 unregistered products worth RM43.22mil last year alone.

While this is not high compared to other middle- and low-income countries – for example, the International Pharmaceutical Manufacturers Group in Indonesia estimates that about one-quarter of medicines on the Indonesian market are fake – it is certainly something to be worried about as it concerns our health.

University of Oxford’s Reader in Tropical Medicine, Prof Dr Paul Newton says that it is difficult to estimate the global size of the problem as there is not enough data.

According to him, there are very few studies, and very few of those are done in a scientifically-rigorous manner, adding that there are certainly hotspots of such problems around the world.

Pfizer Global Security director Mark Robinson shares that the pharmaceutical company sees the highest number of fake drug seizures in Asia, compared to the rest of the world.

But he adds: “That’s because we are targeting (illegal) labs, seizing the drugs before they reach the market.” He observes that in 60 countries around the world, patients went into a legitimate, licensed pharmacy and got counterfeit drugs.

In addition, he notes that the World Health Organisation (WHO) estimates that over half of those who buy drugs online from unverified websites receive counterfeit medicines.

Two types of fake

Fake drugs, also called poor quality drugs, can be divided into two types: counterfeit and substandard.

Prof Newton explains that counterfeit medicines are made by criminals with the intent to deceive patients and healthcare workers for monetary gain.

According to Robinson, these criminals include entrepreneurs, terrorist organisations, drug syndicates and weapons dealers.

 Brick dust, used to hold the fake pill together, as well as boric acid, leaded highway paint to provide the yellow colour, and floor wax to provide shine, were found to be used in the production of counterfeit mefenamic acid by an illegal lab in Colombia. - AFP

They do it, he says, because it is profitable, because they are pretty sure they won’t get caught, and because even if they do get caught, the penalties are very low compared to the amount of money they can make.

The danger of these drugs is that they can vary from not having any active pharmaceutical ingredient to containing toxic materials. (See What’s in your fake drug)

Active pharmaceutical ingredients are the chemical compounds that treat the medical condition.

Unlike counterfeit drugs, substandard drugs are made by the original or licensed manufacturer, but do not conform to the proper standard of quality.

They are “medicines with mistakes”, says Prof Newton.

These medicines occur due to errors in the factories. Sometimes, they can be small errors, and sometimes, they can be large errors, like using the wrong active ingredient, he says.

He opines that this problem is more likely to occur in low-income countries where there is a lack of drug regulation and quality control measures.

However, as with counterfeit drugs, it is difficult to estimate the size of this problem due to the lack of data.

“Not many people are actually looking (for this problem), so we might have an unpleasant surprise,” he says, adding that in terms of public health, substandard medicines are as dangerous as counterfeit drugs.

He adds that some companies are very active in ensuring that their products are good, but, like any human activity, some cut corners and skip the quality control.

Poor regulation

According to the WHO, only one-fifth of its member states have well-developed drug regulation; half have varying levels of regulation and enforcement; and the remaining 30% have either very limited or no drug regulation at all.

In Malaysia, Dr Subramaniam was reported as saying that online drug sales are a particularly hard area to enforce as the Customs Department does not screen packages valued below RM500, due to the very high number of such packages.

“We have asked the Customs Department to screen all packages, and they are trying to do it, but I think it is quite expensive to put such a system in place,” he said after opening the Access to Safe Medicines Training Conference organised by Mediharta Sdn Bhd in January.

Prof Newton was a speaker at the same conference, while Robinson was a speaker at the launch of Pfizer’s anti-counterfeit technology, Patient Authentication for Safety via SMS (PASS), in Malaysia.

According to Robinson, the top three drugs produced by Pfizer that are found to be counterfeited in Malaysia are erectile dysfunction drug, sildenafil; non-steroidal anti-inflammatory drug (NSAID) used to treat pain and inflammation, celecoxib; and hypertension drug, amlodipine.

He adds that it is not only branded drugs that are counterfeited, but also generic drugs that are no longer patented, like the NSAID mefenamic acid.

“People just want to use our good name (to sell fake drugs),” he says.

Prof Newton notes that antibiotics and cardiovascular drugs are also being increasingly counterfeited in South-East Asia.

He adds that it is not only drugs that are counterfeited, but also medical devices like cardiac stents, rapid diagnostic tests and insecticide-treated bed nets – a problem particularly rampant in Africa.

Bad effects

The effects of fake drugs can be felt both on the individual level, as well as on a wider scale. For the patient, taking counterfeit drugs can range from death to developing more serious health complications.

These health complications may be caused by the actual illness being untreated due to a lack of active ingredients in the counterfeit drug, or the drug containing either toxic ingredients or the wrong active ingredients.

The latter will also make it more complicated for doctors to treat the patients, as they might be confused by the incongruent symptoms.

Counterfeit or substandard drugs that contain less active ingredients than required can also cause drug resistance, particularly if they are antibiotics.

Prof Newton adds that consuming fake drugs also ends up incurring more expense on the patients’ part, as they don’t get better and keep on buying more medications.

Patients might also lose faith in the healthcare system, he says. “If you don’t trust the pharmaceutical companies or doctors, you won’t go back and might seek other alternatives.

He notes that fake drugs will also affect genuine pharmaceutical companies, as well as government healthcare systems and non-governmental organisations that inadvertently purchase these drugs.

Both Prof Newton and Robinson hope that governments around the world will take a stronger stance against counterfeit medicines, both in terms of enacting relevant legislation with much stronger penalties for those producing fake drugs, as well as in terms of enforcement.

Patients should also be more careful of what they consume.

For example, signs that a medicine could be fake include an excessively low price, flimsy or unprofessional packaging, and not requiring a doctor’s or pharmacist’s prescription for non-OTC (over the counter) drugs.


An example of the holographic security label for registered Malaysian drugs, which features the hibiscus symbol, serial number and the letters PBKD and DCA. All drug packaging must have this label. – Photo:
An example of the holographic security label for registered Malaysian drugs, which features the hibiscus symbol, serial number and the letters PBKD and DCA. All drug packaging must have this label. – Photo: Health Ministry

In Malaysia, registered drugs also have a holographic security sticker on their packaging.

By Tan Shiow Chin The Star/Asia News Network

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Blacklist the errant and greedy developer who destroyed old building in Penang

What a shame: A file photo of the entrance to the Prai market in Butterworth before it was demolished.

State govt wants firm which tore down market barred from building in Penang

GEORGE TOWN: The state government wants the developer who demolished the Prai market barred from undertaking future projects in Penang as well as disciplinary action against the police officer and lawyer for allegedly colluding with the builder.

Deputy Chief Minister ll Dr P. Ramasamy said the developer must be blacklisted and prevented from building in Penang for tearing down the 76-year-old market.

He said action must also be taken against the police officer whom he alleged had colluded with the developer during the demolition on May 17.

“I have written to the Penang police chief (Senior Deputy Comm Datuk Wira Abdul Rahim Hanafi) and the Home Ministry to investigate and take action against the police officer.

“I personally want the developer prosecuted and jailed and disciplinary action taken against the police officer who abetted the demolition which is a ‘daylight aggression’ and a total disregard for the law,” Dr Ramasamy said yesterday.

On the action sought against the developer’s lawyer, Dr Ramasamy claimed that the court order was for only the eviction of the people and not for demolition of the market.

“The Bar Council must act on this.”

He said there were plans to conserve the market as a heritage building but the demolition ‘threw a spanner into the works’ to restore the building.

Three police reports had been filed against the developer over the demolition.

The Seberang Perai Municipal Council has now cordoned off the site.

The case against the developer for violating the Town and Country Planning Act 1976 was mentioned in the Bukit Mertajam magistrate’s court yesterday and would be brought up again on June 23
- Nu R. Sekaran The Star/Asia News Network

No getting off the hook - Greedy developer should be taught a lession, Says DCM II

Deplorable: A filepic taken in June last year of the rundown Prai Market that was flattened on Sunday.

GEORGE TOWN: The state government will hold talks with the Seberang Prai Municipal Council on action to be taken against the developer for demolishing the 76-year-old Prai market.

Deputy Chief Minister II Dr P. Ramasamy said they would look into all avenues, including getting the developer to restore the structure and arch.

“We don’t have many buildings with heritage value on the mainland so we need to go all out to preserve these buildings.

“This greedy developer should be taught a lesson. The council has taken legal action against the developer before and I will ask them to do it again,” he said when contacted yesterday.

It was reported on Monday that a developer had demolished part of the 76-year-old Prai market despite a stop-work order being issued. The developer had gone against the council’s orders for a second time.

Dr Ramasamy was earlier quoted as saying that although the company managed to obtain vacant possession from the court in June last year, it still needed the council’s approval to carry out demolition work.

He said the state had identified the buildings surrounding the Prai market with heritage value, although it had not been gazetted yet.

A check by The Star showed that the arch at the market entrance with the year ‘1938’ on it was also torn down.

Meanwhile, a reader said it was disgraceful to read about the demolition by a developer who could not be bothered about heritage.

Sanjay C.S. said back in the early 70s, his mother used to cycle from their house in Jalan Baru to the market.

“And today, it resembles as if earthquake had struck there.

“In Nepal, their heritage was ruined by nature, but here, it was selfishly destroyed by human greed.

“The nonchalant developer should be heavily punished!” he said, adding that the state needed to protect its heritage buildings outside George Town as well. - By Tan Sin Chow The Star/Asia News Network

Destroyed despite MPSP's order - Prai market torn down, Penang govt wants action against developer

Destroyed: Workers demolishing the Prai market in Butterworth and (inset) the arch before it was torn down.

BUTTERWORTH: A developer has demolished part of the 76-year-old Prai market despite a stop-work order and the state government wants action taken against the firm.

What’s worse, the developer had gone against the Seberang Prai Municipal Council’s (MPSP) orders for a second time.

Deputy Chief Minister (II) Dr P. Ramasamy said the company managed to obtain vacant possession from the court in June last year but it still needed the council’s approval to carry out demolition work.

“I’ve instructed the council to take legal action against the company. The state government gazetted the buildings surrounding the Prai market, which have been identified as a building with heritage value.

“The workers moved in on Saturday morning and started to demolish the buildings during heavy rain when no one was around.

“This is the second time they’ve done this. They demolished three buildings the first time, and now four buildings,” he said yesterday.

Dr Ramasamy, who is also Prai assemblyman, said 50% of the compensation had been paid to the occupants and the rest would be paid when they move out.

“I would like to remind the company not to touch the Prai market as the council has listed it as a building with heritage value.”

Barber M. Thirunavakkarassu, 61, said he received a call from a friend at about 8am telling him that his shop was being demolished.

“I quickly rushed to my shop but it was too late. Someone could have gotten hurt as the electric supply was not disconnected,” he said.

A check by The Star showed that the arch at the market entrance with the year “1938’ on it was also torn down. MPSP president Datuk Maimunah Mohd Sharif said they would prepare the necessary documents so that the landowner-cum-developer could be charged in court for tearing down the buildings.

“This is the second time the developer had committed the offence without obtaining approval from us.

“The Town and Country Planning Act 1976 states that a planning approval is needed before a building is demolished,” she said at the council building in Bandar Perda, Bukit Mertajam.
- By M. SIVANANTHA SHARMA and CHRISTOPHER The Star/Asia News Network

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The Malaysian Education: bleak and bright side, a wake-up call

The bleak and bright side of Malaysian Education

Malaysia may be getting dismal marks for education but there are dedicated people making a difference to improve scores.

IT’S probably the best definition of insanity: doing the same thing over and over again and expecting different results.

The famous quote is often wrongly attributed to Albert Einstein but whoever said that, it makes sense, especially in the context of the Malaysian education system.

It’s madness to continue spending billions on education without seeing any improvements in quality.

The Education Ministry has been allocated RM56bil this year, RM1.4bil more than what it received last year.

Our expenditure on basic education is more than double that of other Asean countries and also South Korea and Japan.

Yet Malaysia remains stuck at the bottom third of the global schools league, as confirmed by the results from recent assessments such as the Programme for International Student Assessment (PISA) and the Trends in International Mathematics and Science Study (TIMSS).

The Organisation for Economic Co-operation and Development’s 2012 study, based on test scores in mathematics and science among 15-year-olds in 76 countries, shows that Malaysia is languishing at 52nd, way below top-ranked Singapore, Hong Kong, South Korea, Japan and Taiwan.

Our students were out-performed by Vietnam (12), Thailand (47), Kazakhstan and Iran (51). In Asean, Malaysia only ranked higher than Indonesia (69).

In March, Deputy Prime Minister and Education Minister Tan Sri Muhyiddin Yassin said he was shocked by Malaysia’s poor results in international education assessments and admitted that the standards were not good enough.

He said the Malaysia Education Blueprint 2013-2025 (Preschool to Secondary) and the Malaysia Education Blueprint 2015-2025 (Higher Education) were designed to improve the system, stressing that time was needed to see the changes.

The truth is, we don’t have the luxury of time and patience is wearing thin.

We inherited a solid education system after independence, just as Singapore did. But over the past three decades, successive ministers of education have made a mess of tinkering with the system, mostly for political motives.

Earlier this month, Johor Ruler Sultan Ibrahim Ibni Almarhum Sultan Iskandar suggested that Malaysia emulate Singapore’s education system with English as the sole medium of instruction.

Urging the people to be open-minded about the proposal, he said Singapore’s single-stream education system had not only helped to foster unity in the republic but also created a prosperous society.

It is still not too late to bring back the era of racial harmony and unity experienced by people of my generation, who are products of English schools during the 60s and 70s.

As the Johor Sultan has pointed out, there would always be a gap between the races in the country if our education system continues to be based on race and language, not to mention the increasing influence of religion.

But in spite of the weaknesses in the system, it is heartening to see committed parent-teacher associations and non-governmental organisations pushing fervently to get situations improved.

Last Saturday, I was at Sunway University where groups of eager teenagers were taking part in a Young Inventor Challenge, organised by the Association of Science, Technology and Innovation (ASTI), an NGO of volunteers who have been mentoring and encouraging students to excel in science.

ASTI is led by the unassuming Dr Mohamed Yunus Mohamed Yasin, who is credited with bringing about change in the attitude towards science and maths in Tamil schools across the country.

I wouldn’t have known about the quiet science revolution if not for blogger Syed Akbar Ali’s recent post about what Dr Yunus and his group of dedicated friends have been doing over the past 12 years.

As a result of participating in ASTI’s Science Fair for Young Children, Tamil schools are scoring top grades for science and maths in the UPSR.

Last year, SRJK (Tamil) Taman Tun Aminah, Johor Baru, emerged as the top school for the UPSR with 43 pupils scoring straight 7As while others scored 7Bs.

They are making headlines abroad too. In March, three students of SJK(T) Ramakrishna, Penang, beat 300 contestants from all over the world to win first prize at the 35th Beijing Youth Science Creation Competition.

Durgashini Srijayan, Kumurthashri Ponniah and Sugheson Ganeson won the gold medal under the Excellent Youth Science Creation category of the contest for their invention of an eco-friendly thermo container.

In October last year, SJK (T) Kulim’s R. Prevena, V Susheetha and former student R. Rasyikash won the Double Gold Award at the British Invention Show in London for their energy-saving drinks-dispensing machine.

Building on the successes of the science fairs, ASTI started the Young Inventors Challenge, which is open to all secondary schools, three years ago. From the initial 19, the number of schools has since increased to almost 200, including a team from Singapore.

ASTI also organises Creative and Critical Thinking Camps designed for primary schools up to tertiary level, and the ASTI Innovation Community Award to recognise the contributions of individuals or groups using science and technology for beneficial projects.

It also works with Germany’s Goethe Institute in organising the annual Science Film Fest to produce documentaries and teaching films about science.

And it has been doing all these with an annual budget of RM800,000, raised largely from well-wishers, including its 400 volunteers.

Dr Yunus’ philosophy is simple: “Stop complaining, get involved. As patriots, we can help the country do well too.”

By Veera Pandiyan

> Associate editor M. Veera Pandiyan likes William Butler Yeat’s definition of education: it is not the filling of a pail but the lighting of a fire.

Take OECD education report as a wake-up call
- The Star Says

ITS does not feel good to know that a new report by the Organisation of Economic Cooperation and Development places us at 52nd among 76 countries in terms of our students’ grasp of basic skills.

Singapore takes the top spot, thus reinforcing the recent call by Johor Ruler Sultan Ibrahim Ibni Sultan Iskandar that we emulate the island nation’s single-stream education system, which uses English as the medium of instruction.

He said having schools in only one stream would unite Malay­sians and boost their competitiveness.

These developments tell us that our education system can be a lot better. Then again, we all know that.

The fact that Malaysia has two education blueprints – one focusing on preschool education and primary and secondary schools, and the other on higher education – shows that the Government is already taking steps to transform our education system.

The blueprints’ plans stretch until 2025, which means we should not hope for many overnight improvements.

Meanwhile, it is wise for us to keep enhancing our understan­ding of exactly how our shared prosperity is built on education.

New ideas and insights in this area are valuable because they help us to shape and refine policies and practices relating to the education system. At the very least, they encourage us to see things in a different light.

It is clichéd to say education is the cornerstone of development, but what if somebody comes up with projections of how much economies can benefit if school enrolment and education quality go up?

In fact, the OECD has done just that in a report titled “Universal Basic Skills: What Countries Stand to Gain”. Published on Wednesday, it is the same report that has Malaysia in the bottom third of the class based on our teenagers’ mathematics and science scores in international tests.

Let us not get hung up on these rankings. The report is 116 pages long and has a lot more to offer than bragging rights and naming-and-shaming opportunities.

For instance, it makes abundantly clear that an underperforming education sector costs a country dearly. The OECD warns that poor education policies and practices will result in a loss of economic output amounting to a permanent state of economic recession.

The organisation also points out that high-income status does not automatically eliminate shortco­mings in education.

It is also interesting that the OECD argues that when there is universal achievement of basic skills in a country, its economic growth will be more inclusive.

The report suggests that there is still much to learn about how we can strengthen our education policies. We should be open to fresh thinking and approaches.

At the same time, we must not waver from the commitment and noble intentions reflected in the blueprints.

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Big homegrown successes in India from Sillicon Valley's returning 'fail fast' engineers

Taking failure as a norm would be a major cultural shift in India, where high-achieving children are expected to take steady jobs at recognised job

India learns to 'fail fast' with startups

Families that expect children to have respectable jobs may be beginning to accept failure as the tech industry starts to come of age.

After ping pong tables, motivational posters and casual dress codes, India’s tech startups are following Silicon Valley’s lead and embracing the “fail fast” culture credited with fuelling creativity and success in the United States.

Taking failure as a norm is a major cultural shift in India, where high-achieving children are typically expected to take steady jobs at recognised firms. A failed venture hurts family status and even marriage prospects.

But that nascent acceptance, fuelled by returning engineers and billions of dollars in venture fund investment, is for many observers a sign that India’s US$150bil tech industry is coming of age, moving from a back-office powerhouse to a creative force.

“There is obviously increased acceptance,” said Raghunandan G, co-founder of TaxiForSure, which was sold to rival Ola this year. He is now investing in other early stage ventures.

“My co-founder Aprameya (Radhakrishna) used to have lines of prospective brides to meet ... the moment we started our own company, all those prospective alliances disappeared. No one wanted their daughters to marry a startup guy.”

Srikanth Chunduri returned to India after studying at Duke University in the US, and is now working on his second venture. “I think what’s encouraging is that acceptance of failure is increasing despite the very deep-rooted Asian culture where failure is a big no,” he said.

IT’S OK TO FAIL

The shift has come about, executives say, as engineers began returning from Silicon Valley to cash in on India’s own boom, as hundreds of millions of Indians go online.

“Investors too want to find the next Flipkart, and most of them come from Silicon Valley backgrounds, so they bring that culture,” said Stewart Noakes, co-founder of TechHub, a global community and workspace for tech entrepreneurs. “That’s changing the Indian norms. It’s becoming ok to fail and try again.”

Big names like Flipkart can also mean the prospect of a lucrative exit for investors, covering a multitude of failures. To be sure, the pace of change is slow in altering a culture that has produced top software engineers for decades, but – as yet – no Google, Apple or Twitter.

Cheap engineering talent keeps startups afloat far longer than in Silicon Valley, where companies last less than two years on average. And the freedom to fail remains restricted to a small portion of India’s corporate fabric, booming tech cities like Bengaluru or Gurgaon outside New Delhi.

There is also still no revolving door with big corporates, whom one senior Bengaluru headhunter described as beating down salaries of executives who dared to risk – but then came back.

ROLE MODELS

India learns to 'fail fast' as tech startup culture takes root

But big homegrown successes like e-tailers Flipkart and Snapdeal or mobile advertising firm InMobi, as well as the multi-billion dollar firms set up by former executives from the likes of Amazon.com, Microsoft and Google, have created role models, encouraging graduates to take risks.

“With success stories, people accept it as a legitimate exercise,” said Ryan Valles, former CEO of coupon site DealsandYou and a former executive at Accel Partners, now working on a new project.

Meanwhile, billions in investor funding have fed the sector. External cash – as opposed to more traditional bank loans tied to individuals, or family savings – makes a difference. Failing there can involve walking away Silicon Valley-style, not years of court proceedings in a country with no formal bankruptcy law.

There has also been, to date, no major collapse.

“What’s happening is healthy: people recognising that some things will fail, that it’s largely a failure-based industry, in the same way that movies, music or pharmaceuticals are,” said Shikhar Ghosh, senior lecturer at Harvard Business School.

An estimated 70-90% of start-ups fail.

But the biggest test may be the first bust after the boom.

“That will be the test: whether people come back into the market and how they treat the people who lost their money,” said Ghosh. – Reuters

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Malaysia's property market seen next high in 2018

SK Brothers Realty Sdn Bhd general manager Chan Ai Cheng (filepic) believes the market would bounce back as soon as the Government decides to “boost the sector,” namely, measures promoting the industry. “We hope the market will return within the next two years,” she said.

‘Next market high’ for property seen in 2018

PETALING JAYA: A combination of pent-up demand, improved buyer sentiment and overall business environment is expected to spur the local property market to its “next market high” in 2018.

PPC International Sdn Bhd chief executive officer Siva Shanker said conditions have been improving albeit slowly, with the implementation of the goods and services tax (GST) not really having much of an impact as originally expected.

“GST came and went and everyone is still carrying on. But the general perception is that business is slow. When things are slow, the first thing that suffers will be property, because it is a big-ticket item.”

Siva said property transactions, not prices, have been spiralling since 2012.

“But we believe things (transactions) are improving already and we expect 2018 to be the next market high,” he said.

SK Brothers Realty Sdn Bhd general manager Chan Ai Cheng believes the market would bounce back as soon as the Government decides to “boost the sector,” namely, measures promoting the industry.

“We hope the market will return within the next two years,” she said.

Chan admitted that property transactions this year have been a little slower compared with the same period in 2014.

“From our marketing activities and road shows so far, it (transactions) has reduced compared with last year. There’s a bit of hesitation.

She added that the central bank’s tighter lending rules has had an impact on transactions.

“Year-to-date bookings have been about the same as last year, but conversions into sales are not the same.”

An AmResearch report last week reaffirmed an “overweight” outlook for the local property sector.

“While we expect residential prices to continue moving sideways in 2015, a return of pent-up demand towards end-2015 – barring external shocks – is possible as the market is still awash with liquidity.

“Besides that, property cooling measures and post GST impact appears to have already been priced-in, given the steep 52% discount that property stocks within our coverage currently trade at vis-à-vis their respective net asset value.”

In terms of property sub-segments, Siva feels that high-end condominiums are oversupplied within the Klang Valley.

“With that, owners will have problems selling. The landed (residential), industrial and commercial sectors, I believe, will be alright.”

He said the office subsector was also oversupplied - but added that it wasn’t a worrying situation.

“In the short-to-medium term, the oversupply will be absorbed. This is normal. Not every building will be fully taken up - it usually takes a while to get tenants anyway.”

In terms of pricing, Siva said secondary property prices were between 20% and 40% cheaper than new launches.

“It’s the secondary market that’s doing better now. But the focus should be on affordable homes, namely those below the RM500,000-range.

“Landed property within this price range is grossly undersupplied,” he said.

Source: By EUGENE MAHALINGAM The Star/Asia News Network

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Deterrent action for housing developers mooted

DEVELOPERS who carry out earthworks without approvals or permits from the Penang Island City Council (MBPP) could face the possibility of having their applications for future development projects frozen for five to 10 years.

Bukit Setiawangsa concrete embankment has collapsed due to soil erosion

Local Government Committee chairman Chow Kon Yeow (DAP - Padang Kota) suggested that stringent action be taken against such errant developers.

“The state government or the city council will freeze all future development applications of such developers between five and 10 years, if they are found to be carrying out illegal earthworks.

“Such action needs to be taken against these ‘environmental violators or sinners’ to curb illegal hill clearing,” Chow said during his winding-up speech at the state assembly yesterday.

He said if such measures were imposed, developers would be more concerned and serious about getting valid approval for earthworks.

Chow added that MBPP was also seriously looking into the hill clearing issue at Bukit Relau.

“MBPP has met General Accomplishment Sdn Bhd (GASB), which is responsible for the mitigation works on the hill, 13 times since April 26 last year.

“The city council has issued order notices to the company for more mitigation works .

“GASB has carried out hydro-seeding and close-turfing works to minimise the soil erosion on the hill.

“The company has also been ordered by MBPP to supervise the close-turfing, trench and sediment pond at the hill, so that the soil erosion can be controlled,” he added.

Besides that, Chow said a stop- work order had been issued to the developer who had been carrying out illegal earthworks near the Teluk Bahang Dam on Jan 12.

- The Star Community by Christopher Tan, Logeiswary Thevadass and Crystal Chiam  Shiying at Penang State Assembly

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Erosion worsens on Bukit Relau despite slope repairs

GEORGE TOWN (Nov 15 2013): Mitigation works on Bukit Relau, where massive illegal clearing of greenery has stirred widespread condemnation from Penangites, have not been effective, as shocking new photographs of the aggressive erosion have emerged.

This was confirmed during a site inspection by the Penang Island Municipal Council (MPPP) on Nov 2 after the scars on its slopes had appeared to worsen despite the landowner having been convicted by the courts.

The Penang government has however denied that the controversial clearing activity has continued, saying that new damage to the hill are due to landslips and erosion.

Chow Kon Yeow, the state executive councillor for local government, today refuted allegations that the earthworks activity has expanded.

He explained that the apparent increase in the hill’s scarring is due to landslips that happened following mitigation works on the slopes.

“The earlier mitigation has not been effective,” he said. “The grass did not grow well. And the rainy season in September and October caused erosion and landslips.”

He added that MPPP engineers together with MPPP secretary Ang Aing Thye and representatives of landowner General Accomplishment Sdn Bhd (GASB) were present at the site visit on Nov 2 to inspect the conditions.

GASB has since been asked to engage a landscape consultant to improve the situation.

“The landowner must then submit an earthworks plan to the MPPP to approve the mitigation works,” he said.

Chow said this during a visit to the site of the Briksa community park in Farlim where the MPPP is expected to complete landscaping and building of recreational facilities by next month at a cost of RM649,930.

Deep gullies seen at site

Meanwhile, MPPP councillor Dr Lim Mah Hui expressed alarm at photographs of deep gullies taken by a group of hikers and nature lovers at the site last week.

“From the pictures they took, one can see that the erosion is bad,” he said. “It is so clear that they are not just landslips. There are gullies that are about six and seven feet deep.”

“I have raised this matter before in MPPP but nothing is being done. I am a lone voice in the wilderness,” he said. “The media should do its part to highlight this matter.”

Lim lamented that six months have passed since the general election and nothing significant has happened on the site even though Batu Uban assemblyman Dr T Jayabalan and Seri Delima assemblyman RSN Rayer have brought this matter up with the state.

About six acres cleared

When contacted, Tan Sri Tan Kok Ping, one of the four directors of GASB, said the mitigation work done following the stop-work order by MPPP was only to cover the exposed soil with white and blue plastics but that was not adequate.

“Due to the sun, rain and wind, the plastic covering came off and withered. We stopped covering the soil in September to submit the rectification plan,” he said

“I know the erosion is bad because the covers came off. But every time it rains, about six to seven workers are there daily to check on the condition and make sure the lower parts of the area are not badly affected,” he stressed.

He added that the cleared land spans about six acres but the remedial works would involve 30 per cent of the land.

“This will ensure erosion and soil run-off do not occur in future. We will listen to the consultant’s advice on whether to plant grass or trees and spend as much money as needed to repair the damage caused by the clearing,” he added.

The controversy over the clearing, which can be seen from many parts of Penang, blew up in April.

On July 11, GASB was sentenced to a fine of RM30,000, in default of three years jail, by the Penang Sessions Court.

The maximum sentence for the offence is jail term not exceeding five years or a fine of not more than RM50,000, or both.

The deputy public prosecutor has since filed an appeal so that a heavier sentence can be meted out.

by Himanshu Bhatt and Sangeetha Amarthalingam The Nation Malaysian Insider

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