US QE3 sparks concerns !

Tweet

Possible US QE3 sparks concerns

By Hu Yuanyuan and Chen Ji 

BEIJING - The Federal Reserve said on Wednesday it could ease monetary policy further if the United States failed to see solid growth, which analysts said may add to China's inflation and endanger its $3.2 trillion foreign exchange reserves.

"The possibility remains that the recent economic weakness may prove more persistent than expected and that deflationary risks might re-emerge, implying a need for additional policy support," Ben Bernanke, Fed chairman, told the House of Representatives Financial Services Committee. His remarks were generally interpreted as a signal of a possible QE3 (quantitative easing).

In late 2009, the Fed launched an unprecedented bond-buying drive to boost the economy and make credit more available, spending some $1.7 trillion on mortgage-backed securities and Treasuries before it ended in March 2010. It then initiated a second round of easing, that wrapped up in June, in which $600 billion of bonds were bought.

But the US economy remains weak, prompting the possible launch of a QE3. A Reuters/Ipsos poll released on Wednesday showed that the number of Americans who believe the country is on the wrong economic track rose to 63 percent this month, up from 60 percent in June. The country's jobless rate rose to 9.2 percent in June from 9.1 percent in May.



"If the Fed continues to print more money (as Bernanke hinted), it will drag China into a protracted war to limit liquidity and tame inflation," Lu Zhengwei, chief economist with Industrial Bank Co Ltd, said.

China's consumer inflation already surged to a three-year high of 6.4 percent in June, according to the National Bureau of Statistics. This was partly attributable to quantitative easing measures by the US, which drove global capital into the more lucrative developing markets, including China, analysts agreed.

Moreover, the potential injection of money in the US is likely to raise global commodity prices. Crude-oil futures finished higher on Wednesday boosted by Bernanke's comments. The rising prices may force emerging economies, such as China, Brazil and India, to pay more for imported commodities, further exacerbating their inflationary problems.

"It will be a very bad news for emerging countries," Lu said.

Those countries may have to continually tighten their monetary stance, such as by raising interest rates, further incurring capital inflows, Lu said.

Cao Fengqi, director of the Research Center for Finance and Securities at Peking University, told China Daily that a QE3 would lead to faster appreciation of the yuan against the dollar.

According to Cao, if the easing policy became a reality, the resulting flood of US dollars means a faster depreciation of the greenback, which threatens the security of China's foreign exchange stockpile as it will reduce the real value of the dollar-denominated reserves.

"The primary task for China is to control consumer prices and maintain steady and fast economic growth (to counter any external shocks)," Cao said.

The Foreign Ministry said on Thursday that it hoped the US government would take a responsible attitude to protect investor interests.

Bernanke's hint of a QE3 could also be a strategy to pressure lawmakers to agree on raising the US debt ceiling, analysts said.

US President Barack Obama and the Republicans are bogged down in negotiations to raise the borrowing limit before the Aug 2 deadline.

Bernanke may be "talking up the market" and goading Congress to reach a consensus on the ceiling, Chen Xingdong, chief economist with BNP Paribas Asia Ltd, said.

Moody's Investors Service on Wednesday put its AAA rating on US government bonds on watch for a possible downgrade, citing the "rising possibility that the statutory debt limit will not be raised on a timely basis", which would lead to a default on US Treasury debt obligations.

Meanwhile, Chinese rating agency Dagong Global Ratings Co Ltd on Thursday put US ratings on domestic and foreign currencies on a negative watch list because of the country's rising debt.

Dagong said the current political and economic situation had squeezed out room for tax increases, while it is difficult to curtail military and welfare spending.

In the worst-case scenario, the US public debt will continue to grow to 124 percent of the country's GDP in 2015, and the federal government will have to raise the debt limit by $5.5 trillion, Dagong said.

Dagong downgraded US ratings from AA to A+ on Nov 9, 2010 after the US government announced the second round of quantitative easing.

Wei Tian contributed to this story.

 Newscribe : get free news in real time

Bersih rally awakening the young voters in Malaysian politics; Registration easy & simple

Tweet

Awakening the young voters

ANALYSIS By BARADAN KUPPUSAMY

Pakatan Rakyat is seeking to keep the rally’s momentum going, hoping that it can be sustained until an early general election is held. 

NOW that the Bersih 2.0 rally is over, what’s in store for the divided politics of the nation? It’s a question on the minds of many Malaysians.

The Bersih 2.0 rally was a success by some measure because Pakatan Rakyat supporters braved police restrictions, roadblocks and barbed wire to gather in the city centre calling on the Government to institute electoral reform.

Their eight-point demand included issues that the opposition had been campaigning on for many years, like a clean electoral roll, reforming postal voting and a minimum of 21 days for campaigning.

These are fundamentals of a basic election system in a democratic society and few citizens would find this objectionable.

Saturday’s rally, therefore, had an unprecedented impact on society at large and on the election system, comparable to the March 8 political tsunami.

While Saturday’s rally was smaller in size compared to Bersih’s first rally in November 2007, the effects were the same – the awakening of young people to political action to rally for a basic right in defiance of the police.

In 2007, Bersih had the run of the city with huge numbers converging on the Istana to deliver a memorandum to the King.

Anwar called the 2007 Bersih rally an unqualified success.

Three months later, a general election was called that saw a loose coalition, that later became Pakatan Rakyat, winning five state governments and denying Barisan Nasional a two-thirds majority.

This time, too, Anwar is expecting an early election, probably by the fourth quarter of this year to capitalise on the Bersih 2.0 momentum.

709 pictures of the BERSIH march. Malaysians unite!

https://picasaweb.google.com/104201905154669598873/Bersih2Rally090711?authkey=Gv1sRgCN2Bo8PKqdzNIQ#slideshow/5627287829029822

Voices from Malaysian: 

 Patrick Teoh

Teoh has come a very long way from his days as an announcer on the Rediffusion private radio station before establishing himself as one of the pioneers in mobile discos. In fact, till today people still associate Teoh with his voice though he is also into the arts and theatre.

Watch and listen his Video:


By PR’s reckoning, Bersih 2.0 was a major success and big enough to wipe out the series of by-election losses they suffered in recent months and the spate of defections from PKR to BN.

The internal turmoil caused by PKR’s direct elections that also saw many people disheartened with PKR has also been eclipsed.

PR sought to keep its Bersih 2.0 momentum going by organising a large rally in Penang, a PR state, on Monday that was well-attended.

It is hoping that the momentum would be sustained until an early general election is held.

It needs to step up its criticism of BN, organise more Bersih rallies in other states and perhaps take nationwide action to keep the momentum going.

For this reason alone, it is unlikely that Prime Minister Datuk Seri Najib Tun Razak would call an election this year.

He has to put some distance between the Government and the effects of the Bersih 2.0 rally.

Another reason for Najib to delay the general election is the urban voters whose preference is still with the opposition. He has to come up with imaginative programmes to win over the urban voters whose concerns are very different from the rural electorate.

Najib is also due to meet the Pope next week and hopes to establish a diplomatic relationship with the Vatican. He hopes to consolidate the Christian vote, which accounts for about 9% of the 14 million voters.

On another point, Bersih 2.0 leaders like Datuk Ambiga Sreenevasan tried hard to convince Malaysians that her organisation was an independent body and was acting independently.

It is, however, abundantly clear that Bersih 2.0 was an opposition affair from start to finish.

The police handling of the Bersih 2.0 rally is also under the spotlight. Although they were heavy-handed, there was a relative absence of violence except for one death of a PKR activist that was attributed to a heart condition.

The low level of violence as a whole also limited the electoral backlash against the Government.

Therefore, it is an opportune time to release all those arrested, including the six leaders of Parti Sosialis Malaysia who have been detained under the Emergency Ordinance for allegedly reviving communism.

The Bersih 2.0 rally did not come anywhere near those in Egypt, Tunisia, Yemen and Syria. But it will probably have an impact in the coming general election.

The rally proved its point that a large number of Malaysians can gather, despite police action, and march peacefully.

But Bersih 2.0 is unlikely to be a game changer in the way the first Bersih rally was.

Registration easy & simple

By SHAHANAAZ HABIB and RASHVINJEET S. BEDI sunday@thestar.com.my

PUTRAJAYA: Voter registration numbers have gone up significantly, thanks to efforts by political parties.
But some 40% of the new voters they have registered turned out to be ineligible.

“Some are dead, underage or already registered voters,” said Election Commission (EC) chairman Tan Sri Abdul Aziz Mohd Yusof.

“We verify with the National Registration Department (NRD) those who are genuine and get rid of the names of those who are not. This makes it tiring because we have to keep checking,” he told The Star.

Despite this, he said, political parties still registered the highest number, bringing in more half of the new eligible voters.

“Compared to universities and NGOs, the voters we get from political parties are a lot more,” he said.
For May alone, 52% of new eligible voters were registered by political parties.

Twenty per cent were registered through post offices and 13% by government departments.

The EC, meanwhile, roped in 10% of the new voters through its counters and outreach programme. Universities and NGOs helped to register 3% and 2% new voters respectively.

Abdul Aziz added that the EC had appointed political parties, NGOs and universities as assistant registrars to help register new voters, paying RM1 for every clean and confirmed new voter these organisations bring in.

“If they register 1,000 new voters and only 600 are genuine, we pay them RM600,” he said. Between 2008 and 2009, there were 10 million registered voters in the country and another 4.3 million eligible voters who were not registered.

This year, the total number of registered voters increased to 12 million and eligible unregistered voters dropped to 3.7 million.

“We have made registration easy and simple. You can go to the post office, youth bodies, universities, colleges, government departments, NGOs and political parties to register,” he added.

Abdul Aziz said the Malaysian EC was the only one in the world that appointed political parties to assist in registering new voters.

He pointed out that it made sense to rope in political parties. “We appoint an average of two assistant registrars for each state seat. And because they have an interest, they work very hard to register new voters.

“When we do the voter registration ourselves, the response is not very good. We go to events like TV3's Jom Heboh to register new voters but it is difficult for people to come forward.

“This has to do with attitude. People ask what benefit they get by registering as voters. Some people do not have the spirit. They ask what happens if they don't register and when they find out no action is taken, they leave it as it is. Only those who really love the country and would like to choose their own leaders would voluntarily go and register as voters.”

Abdul Aziz also advised the people to vote in their current place of residence as this was stipulated in the law. This would also resolve the issue of phantom voters, where voters allegedly stay in a different place from where they cast their vote.

He said people should not feel attachment to their hometown and balik kampung to cast their votes.
“If I stay in Shah Alam, I shouldn't go back to Penang or my hometown to vote,” he said.

He estimated that about 30% to 40% of Malaysians voted in a different place or state than where they lived.

“I have no power to force them to vote where they live. I can only explain and persuade them,” he added.

Changes & Reforms - a case of two opposing sides in Malaysia

Tweet

A case of two opposing sides

CERITALAH By KARIM RASLAN

We’ve reached a point where it doesn’t matter who brings the change – BN or PR, conservative or liberal, socialist or right-wing. Malaysians will get behind whoever is the most sincere in taking us out of this mess. 

Voices from Malaysian: 

 Patrick Teoh

Teoh has come a very long way from his days as an announcer on the Rediffusion private radio station before establishing himself as one of the pioneers in mobile discos. In fact, till today people still associate Teoh with his voice though he is also into the arts and theatre.

Watch and listen his Video:

LAST weekend’s thwarted march wasn’t an ordinary incident – it reveals two radically different world views.

While the march was nominally non-political, the chasm between the two forces – the Government and the demonstrators – clearly mirrors the increasingly acrimonious split between Barisan Nasional (BN) and Pakatan Rakyat (PR).

Of course, a deeply divided political terrain is always troubling, however, it is at least proof of a dynamic and thriving public discourse.

Ironically, the opposition, despite being excluded from the mainstream media, is clearly setting the terms of this debate.

It also shows that Malaysia remains a democracy – albeit a flawed one.

Indeed, I’d argue that the intensity of the discourse over the past few weeks highlights quite how much we Malaysians care about the state of our nation.

We can see and feel that the state is becoming more polarised – and in such a situation, we are being forced to choose sides.



Sitting on the fence is no longer a viable option – especially when the fence is been shaken so hard by the two opposing sides. However, there are some positives. Most notably the fact that the divide is not racial despite what some politicians are alleging.

In fact there are Malays, Indians, Chinese, Iban, Kadazan, Muslims, Christians, Buddhists and Hindu on both sides of the debate. Indeed, the struggle has gone way beyond racial and religious lines.

Instead we are tussling over political philosophies and principles.

While the differences are certainly stark, their mere existence indicates a certain maturing of our political system presenting us with the alluring prospect of a two-party system.

I must stress that the racial diversity on both sides represents a steadying force – anchoring us together as a nation.

And yes, you could say, it underlines the fact that we are debating a truly Malaysian set of issues.

So what are these substantive political differences? Well, for a start, they transcend mere personality.

On one hand, we have a strident Umno-led Government demanding the continuation of the status quo.

In this respect, Umno is very definitely a conservative (small “c”) force – defending and promoting the interests of the influence-bearing classes.

It’s arguable that Umno’s small businessmen/contractors have adopted the mindset and behaviour of the many minor aristocrats and noblemen that once surrounded Malaysia’s many istana (or palaces) jockeying for favours and/or contracts.

The current Umno vision is retrogressive – it looks back to the party’s heyday under Tun Abdul Razak and Tun Dr Mahathir Mohamad.

It is not a dynamic, expansive vision – witness the primordial and unavoidable cry for Malay unity interspersed with Malay rights.

As with those enamoured and indeed obsessed by the past there is a paranoia and fear of change. Understandably then, any concession or reform is seen of as an affront to Umno’s domination, dignity and integrity.

On the other, you have what is essentially a socialist front in Pakatan Rakyat.

They claim to represent the interest of the rakyat – the ordinary people, taking a moral high-ground on issues such as corruption, mismanagement and civil liberties.

They know the language of the people – focusing on day-to-day issues from rising food prices to the quality of education.

Obviously my formulation ignores the inconsistencies, but there’s no denying the socio-economic and “class” basis to this struggle.

At the same time the respective leaders play up these associations because politics – let’s face it – is also theatre and understatement doesn’t play to the gallery.

Returning to Pakatan, I must point out that the coalition’s very new-ness means they are much more flexible, less rigid and accepting.

Indeed, Hadi Awang’s courageous stance on Negara Kebajikan is an indication of the extent to which Pakatan is exploring new paradigms.

Of course, PAS carry a certain baggage themselves. For example, will the gentle and considerate PAS of today be replaced by a morally sanctimonious force once in power?

At a time when technology is changing so rapidly, (iPad succeeded by iPad2, just when you’ve begun to understand it), we’ve got to accept political systems have to change as well.

But will the face-off between the two opposing forces benefit us – the rakyat?

Well, I for one am confident that there will be change and that we as a nation desperately need that change.

Indeed, we’ve reached a point where it doesn’t actually matter who brings the change – BN or PR, conservative or liberal, socialist or right-wing.

Malaysians will rally behind whoever is the most sincere in taking us out of this mess, just as Ronnie Reagan and later Obama inspired their respective voters.

Ironically, after all this talk of substantive politics we’re back where we started with character and personality.

So, we have to batten down, wait, watch and judge because at the end of the day we, the people are sovereign and through the ballot box, we can kick out those who’ve let us down.

So carry on ladies and gentlemen of the political world, we’re watching and evaluating your performance.

Tweet

A new dawn in world economy?

Review by Thomas Lee tomlee48@gmail.com

A new dawn in world economy?
Title: Uprising
Will Emerging Markets Shape or Shake the World Economy?
Author: George Magnus
Publisher: John Wiley & Sons Ltd

At first glance, the title Uprising gives one the impression that the book is concerned about rebellion or revolt, or matters related to violent political conflicts involving armed resistance.

However, after reading its small-print sub-title Will Emerging Markets Shape or Shake the World Economy? and a quick browsing through its content, one realises that the book is actually an in-depth analysis of the contemporary global economy, in particular the influence and impact of the new emerging markets with the focus on the shift of economic power from the West to the Orient, especially China.

Its author George Magnus is a prominent investment banker and global economist, who has been acknowledged as the key analyst who had predicted the recent world financial crisis in early 2007. He is a senior economic adviser at the UBS Investment Bank in London, and had held similar posts at the Union Bank of Switzerland and SG Warnurg.

Magnus is also a popular and respected public commentator on world financial matters, contributing frequently to the Financial Times of London, the BBC, Bloomberg, the CNBC and several other prominent economic, business or financial publications. He is also author of the 2008 definitive international economic analytical book The Age of Aging: How Demographics are Changing the Global Economy and Our World. 

Hence, Uprising is not simply any ordinary run-of-the-mill book, but a major authoritative book which anyone concerned with the contemporary global economy and the direction it is moving should read and reflect deeply on. What Magnus said in his book should not be treated lightly as he is no false prophet when it comes to matters of international economic wheeling and dealing.



Magnus begins his book with an incisive narration and analysis of the world events building up from the first year of the new 21st century to the current global economic scenario. He gives a sharp observation, and penetrating and critical analysis of events in China, including the implications of a world sporting event like the August 2008 China Olympic Games, which took place sandwiched between the May 2008 Great Sichuan Earthquake which claimed nearly 70,000 lives, and the October 2008 world financial earthquake following the collapse of the US investment bank Lehman Brothers, which, as Magnus puts it, “brought the world economy to the brink of an economic Armageddon, unrivalled since the Great Depression of the 1930s”.

In his 358-page book, Magnus sets out to explain the impact and effect that the 2008 financial crisis has on the major emerging markets, and why the rich developed Western nations is going all out to challenge and curb their increasing threats, especially of China and India, in the global economic order.

A major theme of the book as Magnus puts it, is that “the West’s financial crisis sparked a major change in the structure of the world economy, and that China’s capacity to also embark on structural change voluntarily is weak, unless it is specially geared to the long-run interests of the Communist Party’s grip on power”.

This authoritative definitive book examines the two major economic powers and leading emerging markets in Asia – China and India – and several minor but significant markets in Eastern Europe, and also Turkey.
Currently, the emerging markets are headline news. And the question uppermost in the minds of political and business leaders in all these emerging markets of the world is what will happen following the 2008 world financial crisis and what does the future mean and hold for global finance, trade and commerce.

Magnus provides significant suggestions and pragmatic guidelines to resolve this global economic dilemma.

He presents a persuasive and cogent perspective on China and the other emerging markets from a post-financial crisis situation, urging those with economic potency to seriously reconsider their attitude and approach to the emerging new world economic order. A fundamental matter to critically and analytically examine is the question of what economic reforms are needed to meet the new global goals.

Magnus should most be appreciated for offering a convincing critical analysis of what the future global economy may look like – not merely for the emerging markets, but for policy-makers, businesses, financiers, investors, economists, and even ordinary citizens concerned with the economic well-being of their nation and the world.

Magnus deals with matters such as climate change, commodity prices, and world demographic trends, and gives valuable insights into the implications of these issues for the world economy.

One significant question Magnus deals with is whether the 21st century belongs to China. The Communist nation operating on enterprise capitalism for the last 30 years is now all set to regain what Magnus has pointed out in his book as its premier economic power it held from ancient times till the early part of the 19th century.

For all intent and purpose, China is set for an economic renaissance. It will soon regain its ancient mantle as a world economic power it lost when its reticent conservative bureaucracy forced it into international relation isolation while Europe moved economically forward with an industrial revolution in the 19th century.

The Uprising by the plucky economic seer Magnus is certainly essential reading for anyone who wants to understand and care about the future of the global economy.

Understanding the context, content and challenges of the world economic scenario during the first decade of this century is certainly vital for those responsible for making policies, plans and programmes to chart the direction, set the trend, and strive for vigorous economic success in their nations.

Thanks to Magnus, his book has provided the seeds for the planting, growing and harvesting of serious objective thinking, critical pragmatic evaluation, constructive practical ideas, and effective and efficient creative implementation of economic policies, plans and programmes.

Understanding The Rise Of China [VIDEO]

http://www.dump.com/2011/01/25/understanding-the-rise-of-china-video/

The challenges of succession

Tweet



The challenges of succession



Lost direction? Many companies controlled by Chinese families experience succession problems as the leaders age but their children are not yet ready to take over the business. The fact that most Chinese families have just one child means tough decisions will have to be made when entrepreneurs consider retirement and succession. Hong Ye / for China Daily.


Lenovo Group Ltd may not want to disclose its succession plans but at least it has one. There's a good reason for the secrecy: Revealing who is going to replace whom puts the group at a disadvantage because it will encourage competitors to recruit its best people.

If history is an indicator, power or ownership transition is always difficult and most of the time, it will hurt.

"Chairman Liu (Chuanzhi) and CEO Yang (Yuanqing) realized that Chinese companies struggle with succession planning. The cornerstone for us is creating the next generation of leaders. The board worries about it," Kenneth DiPietro, senior vice-president of human resources at Lenovo, told China Daily.

Lenovo's board of directors, Yang and DiPietro discuss key moves within the organization once every year.

"We even create scenarios of possibilities such as 'what if we move this person to another department, what will happen?' or 'if this person is put here, what sort of results can we expect to see?' This helps us to build up the skills and capacity of certain people," he said.

The process, which was adopted four years ago, speaks volumes, especially when Lenovo is up against other Chinese mainland companies in terms of corporate governance.

Most Chinese chief executive officers and founders are young, the majority of them being in their 40s or 50s. Starting succession planning now doesn't carry as much importance as pursuing bigger profits and expanding into new markets.

The limitation of companies is not access to talent, DiPietro said. "The question is also not always about funding for mergers and acquisitions. As we move into new markets and new technology space, we ask ourselves: 'How are we going to execute with depth?'."

Now, 32 years after China's economic reform, the country's private sector, especially companies that have become globally competitive, will soon face the question of how to hand over to the next generation.

Liu Chuanzhi, Lenovo's chairman, is 67, and so is Ren Zhengfei, founder and president of telecom solutions provider Huawei Group. Zhang Ruimin, founder, chairman and CEO of Haier Group, a consumer electronics producer, is 62. Zong Qinghou, founder, chairman and CEO of Hangzhou Wahaha Group, a beverage maker, is 66.

Referring to succession planning in corporate China, Liu Shengjun, a professor from China Europe International Business School, said: "Usually they don't have a plan or they don't think it's necessary to have a plan. If they have a plan, it's usually poorly hatched."

He said the challenges that corporate China will face or is already facing are that founders are getting old, companies are getting too big to manage and companies are going global.

"Professionals are needed. Leaders with global vision are needed. But Chinese CEOs prefer to work life-long like Li Ka-shing. What they need are assistants rather than successors," he said.

When the 82-year-old Li was suddenly hospitalized in 2006, shares in his listed companies immediately sank.

In a joint study conducted on 250 companies controlled by Chinese families in Hong Kong, Taiwan and Singapore, Joseph Fan, a professor at the Chinese University of Hong Kong found that successions tended to go along with major declines in the stock value of these listed companies.

"If you hold shares valued at 100 yuan ($15) five years before the succession, the value will drop to 40 yuan by the time the company announces a succession," he said.

"It's a very challenging task. Most Asian companies have not done well. Those that have done well took 15 years to plan a succession," Fan said.

More than planning, succession requires founders to look deep at their lives and families too. "How many times they return home to eat, how many mistresses and children out of wedlock they have all these matter," he said.

Even if succession is well planned, the ferocity of the business environment in China posed extra challenges to companies, he said.

A change in local government officials, unforeseen recession or macroeconomic changes, or starting the succession in a hostile business environment can find companies unable to turn against the tide.

When Party member Lou Zhongfu first built Dongyang-based Zhejiang Guangsha Co Ltd in the 1970s into the multi-industry group it is today, he had the foresight to show his two sons the ropes in the hope that they could take over from him when he retires.

However, the listed Zhejiang Guangsha Co Ltd performed poorly over the years, which were predominantly affected by uncontrollable events. When the Dongyang local government changed hands in 2001, 2005 and 2007, even the well-connected Lou had to rebuild 'guanxi' several times over while watching the company's debt rise due to various outstanding infrastructure projects.

Since 1993, Guangsha Group has invested 400 million yuan in the construction of infrastructure such as Dongyang Children's Park, Xishan Park, Guangsha Baiyun Culture City and Tiandu City Huanle All Season Park.

The listed company performed poorly in the stock market over the years and reported losses of 177 million yuan in 2005 and 272 million yuan in 2006. In the same year, the company found itself embroiled in credit scandals over defaults involving large loans.

In 2010, the listed Zhejiang Guangsa started to install a new set of board members and is expecting to turn the corner, backed by an experienced team.

Fan expects fights for control of Chinese mainland companies to be more severe than their other Asian counterparts due to a vacuum in values in current Chinese society.

"We used to say family businesses tend to survive up to the third generation. With poor family governance, businesses in China can only last one generation," he predicted.

He predicts that most of the Chinese entrepreneurs may sell their businesses before retirement and transfer their capital out of the country.

"It's very unfortunate if this were to happen. You can sell assets but not brains. Intellect could not be passed down to the next generation," he said.

In addition, the one child in most Chinese families mean that it will be tough going for entrepreneurs to pass on to family members.

It's understandable that most founders of businesses in Asia and Europe desire to keep them within their families and partly also because of fear of betrayal.

The boardroom battle for control of Gome Electronics is a perfect example of an outsider hired as a professional to run the business who tried to seize control from founder Huang Guangyu, Fan said.

It's not surprising that most founders of companies believe that blood runs thicker than water.

Huawei's President Ren Zhengfei had almost similar experiences too. He promoted Li Yinan, a bright young executive, to be his second in command and potential successor. However, Li left Huawei in 2000 to start a rival company, which was later bought by Huawei in 2006.

For the first time, Huawei began disclosing biographies of its board directors in the group's 2010 annual report in order to be more transparent and "adopt a market-oriented corporate governance structure as part of its growth strategy".

While companies can outlive their founders, founders cannot live for centuries.

Source:China Daily

Datuk Dr Ang Bon Beng of Nissan Tan Chong Motor

Image via WikipediaTweet

Up close and personal with Datuk Dr Ang Bon Beng

By EUGENE MAHALINGAM eugenicz@thestar.com.my

Tan Chong Motor Holdings Bhd's principal activities consist of investment holding and the provision of management services to companies in the Group that main ...

 

IT may come as a bit of a surprise when Datuk Dr Ang Bon Beng, executive director of Edaran Tan Chong Motor Sdn Bhd (ETCM), a local distributor of Nissan cars, says he was never a man with big dreams.

What's harder to believe is that Ang, who is one of the most well-known and respected people in the local automotive industry today, used to earn a living driving taxis and lorries.

“I never had big dreams. (But) I had small yet realistic ones,” he says modestly. “Big visions come from small dreams,” Ang adds.

The eldest of 10 children, Ang was born in 1949 in Kepala Batas, Penang, to a taxi driver father and homemaker mother. Life back then was about living day to day and making ends meet; sometimes living off just biscuits and water.

After completing his Form Five education, Ang had no choice but to start working, as his parents could not afford to finance his education any further. To help support the family, Ang started driving his father's taxi to earn a living.

 

BIO

BORN: March 17, 1949
PERSONAL: Married with four children and two grandchildren
HIGHEST QUALIFICATION: PhD in business administration, University of Honolulu (Hawaii), USA
CAREER: Executive director for Edaran Tan Chong Motor Sdn Bhd and sits on the board of various subsidiaries of Tan Chong Motor Group
FAVOURITE FOOD: Char kuey teow with duck egg and loh mee with vinegar
FAVOURITE PLACE: Kepala Batas, my hometown
HOBBY: Listening to Buddhist music
PHILOSOPHY: Believe, commit, do and deliver
INSPIRATION: My father for instilling the right values in me; Tan Sri Tan Yuet Foh (the company's late foun der) for motivating me in pursuing career advancement; and Datuk Tan Heng Chew for grooming and preparing me for the cor porate world

“My father drove in the day and I would take over in the nights. It was tough. You would hope to make at least RM10 a day, but sometimes you can't even reach that.

“Sometimes, the taxi would break down and the repairs would cost RM20 or RM30. On certain days, if you are unlucky, you get stopped by the police and the passenger you're carrying is forced to get off and you don't get paid,” Ang reminisces.

In 1970, after several odd jobs, a friend approached Ang for a salesman job with the Tan Chong Motor Group. At the time, the company was expanding its presence in Penang. In the hopes of earning a better living for himself and his family, he took the job.



Despite knowing next to nothing about selling cars, Ang knew he had found his calling.

“After going through so much of hardship in life, selling cars wasn't hard. I persevered in taking on the challenges that Tan Chong had set out for me to do. I was motivated to push myself further each time I achieved my sales target.”

Ang was promoted to sales manager in 1981. The following year, he was posted to Sarawak and appointed Kuching branch manager. In 1989, he was made northern states manager, overseeing branches and dealers within Penang and Kedah.

Ang was eventually made sales director in 2001, and in the following year, he was appointed executive director for ETCM a post he still holds today. Ang also sits on the board of various subsidiaries of the Tan Chong Group.

The driven man

With over 40 years of experience under his belt, Ang is arguably one of the longest serving individuals to be involved in the automotive industry in the country.

Not many can lay claim to starting off from the front-lines of the automotive business and making it all the way to the top within the same organisation.

 

Humble beginnings: Dr Ang with his first car in his younger days.

Under Ang's helm, the Tan Chong Group has survived three recessions

 During the global financial crisis in 2009, while other car companies were struggling to manage inventories and pushing sales, Ang practised an internal safeguard strategy, or vision statement, called “Control the free-fall.”

The strategy was to drive his workforce to work harder in the downturn (than they usually would in good times) or risk spiralling down in terms of sales.

That vision statement worked well for the company despite a fall of 2% in total industry volume, Nissan sales in 2009 increased to 29,683 units from 28,313 units in 2008, which was a 5% increase.

 
 http://www.nissan.com.my/http://www.nissan.com.my/images/common/allvehicles.gif

This year, ETCM and other Japanese makes are facing a new kind of challenge production disruption as a result of the earthquake that hit Japan in March. On top of this, the recently amended Hire-Purchase Act 1967 (HPA) that took effect on June 15 is also causing a slowdown in vehicle registrations for all car companies.

“To drive my workforce and to safeguard against any impact, we are applying a vision statement called 55%-45%. I tell my team that if they feel they have put 100% into something, it is only 55% and there is still (a potential of) 45% more to go,” says Ang.

Ang says the strategy for this year is to still be able to continue growing market share within the local automotive industry.

“You constantly need to move forward and be able to expand your business. It's what the shareholders demand.”

Ang says one of the most important recipes for success is having the ability to adapt to changes around you.

“The market is constantly evolving and you have to keep up with the pace of the dynamics, and as a chief (of the company), you need to set a good example to your people. If you don't equip yourself with the latest strategies or knowledge, you'll be squeezed out by your competitors.”

Ang says he makes it a point to communicate with the sales advisors, all 700 of them, on the importance of staying ahead and being able to adapt to the changes, especially in times of challenges.

He reminisces about the time when Nissan Motor Co Ltd president and chief executive officer Carlos Ghosn visited Malaysia in 2008.

Ghosn had limited time here and with 20 minutes to spare, Ghosn wanted to visit ETCM's Serendah (Rawang) manufacturing plant, which is nearly an hour's drive from Kuala Lumpur!

“When our people were told that they had to find a way to transport him (Ghosn) to Serendah in 20 minutes, they thought it was crazy. The only way to do it is to fly him there by helicopter. “So we did just that we flew him by helicopter.”

The moral of the story? Be prepared for change at any given time, says Ang.

“I always talk to my people on the importance of change in a rapidly changing environment. It's demanded of them if they want to survive.”

At 62, Ang, who has a PhD in business administration and master's degree in law, seems to show no signs of slowing down. Despite the qualifications that he already has, Ang is considering pursuing a masters degree in psychology.

“Having the (working) experience is one thing but (having the) academic qualification is also important,” he says, adding that pursuing a masters degree in law helped him understand legal documents and terminology associated with the automotive industry better.

“It (academic qualification) is an important asset that helps to improve my performance in this company,” Ang says.

Ang's constant pursuit of knowledge and self improvement are traits he has inculcated in his children. He is quick to admit, however, that despite being able to provide a privileged life for his family today, in no way are his children having it easy.

“They say I'm a tough father,” Ang enthuses, adding that when he looks back at his career, he considers joining Tan Chong and marrying the right woman the best decisions he's ever made.

“In pursuing a career, you need a lot of support from your family. My wife has always supported me all the way. I'm still faithful to her,” he says with a laugh.

Ang, who has been married for nearly 40 years, has four children. Sadly, his youngest son passed away in a car crash in 2009.

As the chairman of the Penang State Social Welfare Council of 20 years, Ang spends time with the senior citizens at the old folks home in Bukit Mertajam whenever he can.

“It gives me satisfaction to be able to improve the lives of others. Their most common lament is that they wish they could turn back the clock, so that they won't repeat the mistakes of their past and be where they are today.”

Ang says he often shares his experiences (at the welfare home) with members of his staff.

“I tell my people that they should always make the best use of their time and not waste it doing unproductive things.”

That message is in fact a philosophy that was passed down to Ang by whom he considers his greatest mentor his father.

“My father always told me that if you keep walking, you will reach your destination. Along the way, it may rain and someone (or something) might get in your way and end up slowing you down.

“It might take you a little longer, but as long as you keep on walking, you will reach your destination. Eventually, you'll be there.”

Related Articles: Nissan’s Ghosn is highest paid exec at a Japanese firm Jun 29 Nissan CEO's $12M pay gets shareholder scrutiny Jun 29 Japan factory output gains for second month US auto sales cooled in May due to shortages   Nissan Leaf earns top crash safety rating By Peter Valdes-Dapena  The Nissan Leaf earned a top 5-star rating from the National Highway Traffic Adminstration and a Top Safety Pick Award from the Insurance Insitute for Highway Safety. NEW YORK (CNNMoney) -- The Nissan Leaf earned a top five-star rating in the federal government's new, tougher crash test rating system. Under the National Highway Traffic Safety Administration's new rating system, all vehicles are given a single rating of one to five stars based on their scores in seperate front and side impact tests as well as resistance to rollovers. The Leaf earned four stars for occupant protection in front-end crashes, five stars for side crash protection and four stars for resistance to rolling over, resulting in the overall five-star score. The Leaf is an electrically powered plug-in car. It can go about 70 miles on a charge, according to EPA estimates. NHTSA used updated crash test regimen, introduced last year, which includes a new side crash test in which vehicles slide diagonally into a pole, mimicking a car skidding into a light post or tree. General Motors' Chevrolet Volt also recently earned a five-star NHTSA safety rating. Safest fuel-efficient cars The Volt and the Nissan (NSANY) Leaf electric car were both recently given Top Safety Pick Awards by the privately funded Insurance Institute for Highway Safety. The Institute, which is financed by auto insurers, conducts a different set of crash tests from those conducted by the government. To earn a Top Safety Pick Award, a vehicle must earn top scores in all of the Institute's tests.

Would Malaysians learn lessons from Bersih 2.0 rally?

Tweet

Lessons to be learnt for all

By SHAHANAAZ HABIB sunday@thestar.com.my

If Bersih's true intentions were for electoral reforms, it would have been better for it to engage both Barisan and Pakatan than take to the streets.

AT a mamak stall behind Hotel Midah opposite Merdeka Stadium, police and FRU teams deployed in the area took turns having a hearty breakfast of roti canai and teh tarik.

It was only 8am and they were in good spirits.

Others sealed off the road to the stadium with razor wire and blocked off a number of roads to prevent Bersih 2.0 protesters from converging.

This was also the scene at a number of areas encircling the city.

The Police and FRU were on full alert around Central Market, Masjid Jamek, Dataran Merdeka, the National Mosque, Sogo, and Petaling Street, among other spots.

They even searched the bags of some commuters getting off at the Masjid Jamek LRT station and took away those whom they suspected of being protesters.

At that time it seemed like the heart of the city been successfully cordoned off and protesters would not be able to get anywhere close.

Shops were shuttered and only a few people seemed to be walking about.

At 11am, even Perlis PAS commissioner (and former PKR secretary-general) Mohd Anuar Tahir, who had come from Perlis to join the protest, didn’t seem so sure how far it could go because of the heavy police presence and road blocks.

Standing inconspicuously outside a 7-11 outlet along Jalan Tuanku Abdul Rahman, a short distance from Masjid Jamek, Anuar watched police as they combed the area for Bersih protesters.

“Even if we don’t reach Merdeka Stadium, I think the protest is already successful. The way they (the police) have shut down the city shows they are afraid. And the publicity given to us has been so huge.

“Even the Agong, by meeting Bersih, has given great recognition to us,” he said before moving away.
Bersih is demanding electoral reforms for free and fair elections.

The Government, though, has accused Bersih of ulterior motives, saying it is trying to topple the elected Barisan Nasional government through street demonstrations and unlawful means – something which Bersih denies.

The government has also outlawed Bersih and the yellow Bersih T-shirts.

Home Minister Datuk Seri Hishammuddin Hussein has also said that even though the Agong met with Bersih 2.0 leaders, the movement remains illegal and outlawed, and told people to stay away from the protest or risk being detained.

And yesterday, it appeared that tens of thousands were still willing to take the risk.

At about 12.45pm – despite the city lock-down and stringent checks – groups of protesters managed to converge and march.

Suddenly, people showed up from all corners and their numbers grew very quickly.

One of the first groups marched near Central Market to Leboh Pasar Besar towards Dataran Merdeka where the FRU team and its trucks were waiting.



After ringing the bell and giving protesters three warnings to disperse immediately, the FRU then fired tear gas into the crowd, forcing protesters to scramble and take cover.

But all this did was to make the protesters move away and regroup elsewhere.

One group headed towards Merdeka Stadium while another was in Petaling Street and heading towards Central Market chanting “Reformasi” and “Bersih, Bersih” before tear gas forced them again to disperse.

A particularly boisterous group, some in Bersih T-shirts, some carrying yellow balloons and yellow flowers, marched to Jalan Pudu near Puduraya and again their numbers quickly grew.

Again the police fired rounds of tear gas to disperse the group. Some ran into a restaurant to wash their stinging eyes and to seek shelter.

The rain didn’t stop the protesters either. They continued to regroup, and more tear gas was fired.
Some protesters even caught the tear gas canisters and flung them back at the police.

“I was caught in between,” said a policeman whose eyes were red from the tear gas.

At one point, PKR leader and Subang MP R. Sivarasa together with Perak DAP leader Ngeh Koo Ham, who both wore Bersih T-shirts, came forward to negotiate with the police. They asked that the protesters be allowed to march a short distance along Jalan Pudu towards Jalan Sultan.

“We have no intention of fighting with the police. We will be disciplined and just walk a short distance,” he said, as the police seemed to agree.

But a short while later, as Sivarasa and Ngeh led the protesters, the police detained the two.

A number of opposition leaders and Bersih 1.0 leaders were also picked up. Some, including Bersih chairman Datuk S. Ambiga, were detained but all were later released.

As Sivarasa was being led away, he said that as far he was concerned, Bersih 2.0 had achieved far more than it had hoped for.

For Sabah Barisan Nasional secretary Datuk Abdul Rahman Dahalan, Bersih 2.0 has clearly been hijacked by Pakatan Rakyat.

“If I were Ambiga, I wouldn’t go near (Opposition leader) (Datuk Seri) Anwar Ibrahim. But here, you have Ambiga and Anwar having joint press conferences.

“And the protesters were shouting ‘Reformasi’ instead of ‘Bersih’,” he said in reference to the “Reformasi” chant by protesters when Anwar was sacked as deputy Prime Minister and deputy Umno president.

Rahman said he personally agrees with some of the electoral reforms that Bersih 2.0 has been seeking, including fairer coverage in the mainstream media, but he wishes things had been done differently.

He believes if Ambiga had gone on her own strength as the former Bar Council chairman to seek for electoral reforms and distanced herself from “elements of politics” including Anwar and PAS deputy president Mohamad Sabu, she might have even received support from Barisan Nasional.

“Ambiga might have a good cause but I am a bit upset with the way she is going about it. She doesn’t even try to engage the Barisan Nasional Backbenchers Club (BNBBC),” he said.

If the intention was for electoral reforms, he said, then Ambiga should have engaged both Barisan and Pakatan while remaining impartial.

“She could have approached us and talked it over coffee. Have they (Bersih 2.0) tried to convince BNBBC? I agree that there are certain things that can be improved in the elections. For this, they (Bersih) should play it right (and engage all),” he said.

He also said that asking for “free and fair” elections is also too provocative because it suggests that the Government in power is illegitimate.

“You call them illegitimate and expect pleasantries?”

He added that Bersih 2.0 also should not have abandoned talks with the Election Commission.

Rahman, who is Kota Belud MP, also stressed that in the three years he has been in Parliament, Pakatan MPs have never once attempted to seek to amend the Election Act to improve the system.

As for yesterday’s Bersih rally, Rahman said he is confused as to whether it was for electoral reforms or the right to assemble. There are lessons learnt too for Barisan.

Rahman said he is disappointed with the Election Commission (SPR) for not being able to answer allegations made against it in a way that the ordinary people would understand.

He is also disappointed with interviews on TV1, TV2 and TV3 where they do not address probing questions to the SPR chairman, he added.

“I was cringing when I heard the interview. The host is playing a pro-government stance and putting people off by not asking hard questions.”

He also said SPR needs a good spokesman to answer questions about the elections that have been raised by the opposition.

Be it on the streets, programmes, projects or the ballot boxes, both Barisan and Pakatan will continue to fight for the hearts and minds of Malaysians.

The decision will probably be known only in the next general election.

Bersih 2.0 Winners or Losers? Time to move on!

Tweet

No winners, just losers

ON THE BEAT WITH WONG CHUN WAI

IT’S becoming tiring for many Malaysians. We are talking about our politicians and supporters regardless of their political affiliations.

Take, for example, the organisers of Bersih 2.0. They need to realise that not all Malaysians are their fans. Not all share their beliefs and decision to stage a rally in Kuala Lumpur.

Their supporters have the right to argue and convince others that it is their constitutional right to protest but, again, do not expect everyone to share their enthusiasm.

When jazz singer Datuk Sheila Majid tweeted: “I am disappointed with all political parties, NGOs and Bersih. There are better ways to approach,” she immediately received a nasty rebuke from a PKR activist who shot her down, saying he used to respect her. She probably lost a fan because of her tweet.

There are enough people who would like to tell them that their protest was illegal and that they should know this is basic law.

Protesters should know better that when you attend a demonstration, it is not going to be a picnic. One should expect to be arrested and hauled into a Black Maria, so let’s not kid ourselves into believing that the cops would give them a red carpet welcome.

Certainly, only a politically naive person, or someone in self-denial, would believe that Datuk S. Ambiga was acting on her own.

Yes, of course, it was not politically motivated. The opposition politicians just happened to be there. Yes, they just bumped into each other at KL Hilton.

In the case of the government, many are also shaking their heads at the authorities’ sledgehammer treatment of Bersih 2.0.

Just weeks ago, not many Malaysians knew who Ambiga was. Thanks to the over-excitement of the authorities, she has become an icon overnight.

And don’t blame Malaysians for being cynical over the claims that communist elements were involved in the rally. More so when those dreamer socialists were said to have T-shirts bearing the names of dead Commie leaders.



Suddenly, Che Guevera, whom many teenagers at Pertama Complex had all this while thought was Bob Marley, was declared dangerous and subversive.

Then there was the obsession with the colour yellow. By the way, there were enough Malaysians who actually believed the Digi Man was arrested by the police, although the e-mailed picture was doctored.

But it was a funny spoof, and I wish there were enough Malaysians with a sense of humour to laugh at the fat yellow man.

Arresting people who wear yellow T-shirts with the word “Bersih” is not going to help the government win votes. Something is wrong with us if we believe revolutions can be launched by wearing yellow T-shirts with the word “Bersih”.

One need not be a rocket scientist to know the political backlash of such an action, even though there may be good security measures.

And the police, trying too hard to be friendly, put on its Facebook pictures of those detained being served with a buffet meal. There were round tables covered with tablecloth. Not bad at all, man!

No wonder there are many people who think a protest in KL is really a stroll on a weekend.

And then there was Perkasa’s Datuk Ibrahim Ali. The man is really comical. After driving enough people into a frenzy with his racist tirade, he decided to stay home. At one point, he claimed he could mobilise 15,000 people. As a face-saving gesture, he declared he would take “a stroll” at Tasik Titiwangsa. It must have been a pretty long stroll. He was probably walking around in circles.

And we can assume everyone would declare themselves winners. Bersih 2.0 will say that they managed to stage a protest despite the police locking down the city.

The authorities, too, will say that they won this round by claiming that the Bersih 2.0 crowd wasn’t as massive as they had expected.

Ibrahim Ali could also declare himself a winner as he could have successfully earned a place in the Malaysian Book of Records for taking the most number of strolls at Tasik Titiwangsa.

Umno Youth’s Patriots can also claim to be winners despite walking barely 200m before being tear-gassed and arrested.

There was another record – Anwar could still post a tweet at 4.40pm that says “undergoing CT scan for injury. Wishing #Bersih all the best.”

How he could take his mobile phone into a CT scan machine is a wonder. The Opposition leader had purportedly fallen during the protest.

Either Malaysians must be very bad in Maths or they are very good at exaggerating. The police said there were only 5,000 protesters whereas Datuk A. Samad Said said 50,000 while the pro-opposition Malaysia Chronicle news portal claimed 100,000 people.

The silat exponents turned out to be a lot of hot air in the end.

The biggest losers were the public who got stuck in horrendous traffic jams. Businesses can count their losses, vendors could not distribute their newspapers, commuters found at least eight LRT stations shut, the city’s cabbies had to stay at home and, worse, terrified city dwellers had to stock up on food unnecessarily.

And taxpayers must certainly be wondering why their money is being spent on bringing so many cops into the city – and serving a buffet meal to law-breakers at Pulapol – when they should be busy catching criminals.

It must be brought to mind that not everyone who supports Bersih 2.0 are pro-opposition. Many middle class urban voters are unhappy about many issues and it won’t hurt the government to listen to them. Don’t give up on them so they won’t give up on the government. Some concerns are legitimate ones that need fixing.

Likewise, Pakatan Rakyat should not misread today’s rally as an endorsement of the Opposition.

The game is over, time for everybody to move on!

THE STAR SAYS . . .

EVERYBODY seems to have achieved what they wanted over yesterday's Bersih 2.0 rally in Kuala Lumpur.

The demonstrators had no access to any particular venue, so they gathered anyway en route.
And so they declared the rally a success.

The police had also imposed a 22-hour lockdown of the city.  They, too, declared the day a success.

The Federal Government had observed the minimal participation of the public and declared yesterday a success too.

There seems to be no rancour or bitter recriminations.

Since everybody appears to have got what they wanted, perhaps the country as a whole can now move on.



Although 1,667 protesters were detained, all were released last night.

Many who had taken to the streets may well have been committed to the cause of a clean election.

Then there are the political players who would relish any opportunity to make the nation's political incumbents look bad.

After much haranguing over the protest venue, the legitimacy of the protest and even the legal status of the Bersih group itself, the logistics of the protest came to eclipse its purpose.

The organisers' efforts in internationalising the protest by getting supporters abroad to hold simultaneous demonstrations worked, at least as an international news item.

News reports were filed and foreign commentators weighed in.

So, regardless of whether protest organisers succeeded in assembling exactly where they wanted, they got all the publicity they wished.

And yet the underlying question remains: was there no better way of putting across the message, cause or demand for a clean general election?

Whether or not a street demonstration should be the last resort for aggrieved parties, it should seldom, if ever, be the first.

The Yang di-Pertuan Agong had advised rally organisers against a street protest, and the Prime Minister had approved in principle a stadium rally.

But had the organisers tried to hold a top-level dialogue with Government leaders to press their case?

If every complaint made one or the other party take to the streets, bringing a city to a standstill, people would not be getting much work done.

Demonstrators would also not be making many friends, let alone winning supporters.

There should be a better way, but we can know only if we try.