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Friday, April 13, 2012

Google+ face-lift triggers jibes over extra white space

Yesterday's revamp of Google+ leaves a hefty amount of white space on certain pages, a design change that's brought out the comedian in many users.

 
(Credit: Screenshot by Lance Whitney/CNET)
 
What would you do with the extra white space now gracing the pages of Google+?

That's a question many users of the social network have been answering with the usual sarcastic spin we always love to see on the Internet.

Launching yesterday, the latest face-lift for Google+ added a slew of changes, including a new left-side navigation bar and new ways to interact with the people in your circles.

But the one change that's put people into full mocking mode is the new and extra-sized white space. Click on any virtually any Google+ page, and a good 40 percent is nothing but blank space.

The white-space flap has led to its own trending topic on Google+, where an array of users have chimed in with suggestions on how to use that space most effectively.

One user found the extra white space in front of his monitor a good spot to place his beer. Another put his cat in front of it. And a third angled his monitor into portrait mode to get rid of the white space entirely.
Personally, I'm a fan of white space. I think most Web pages are way too cluttered, so a little breathing room isn't so bad. But in this case, the search giant may have gone a bit overboard. The extra space kind of makes the pages seem off-balance, like they're going to tip over.

The obvious questions are why Google designed the pages this way and whether the company plans to use that extra real estate for other content down the road.

A Google rep told CNET that some of the changes were indeed created for future needs.

"So while it may look clutter-free now, the idea is to give us space that will allow us to quickly grow," the rep said. "With today's foundational changes we can move even faster--toward a simpler, more beautiful Google."

I have hunch, though, that the company may have planned the whole "extra white space" conspiracy as a savvy marketing strategy. It quickly turned into a trending topic and has generated lots of buzz. What better publicity could you ask for?


Lance Whitney wears a few different technology hats--journalist, Web developer, and software trainer. He's a contributing editor for Microsoft TechNet Magazine and writes for other computer publications and Web sites. Lance is a member of the CNET Blog Network, and he is not an employee of CNET.

North Korea Satellite & Rocket Launch Failed

DPRK confirms satellite failed to enter orbit




Pyongyang, April 13 (Xinhua) -- An earth observation satellite launched by the Democratic People's Republic of Korea (DPRK) earlier Friday morning has failed to enter orbit, and scientists and technicians are now looking into the cause of the failure, the official KCNA news agency reported.

The Kwangmyongsong-3 satellite was launched at the Sohae Satellite Launching Station in Cholsan County, North Phyongan Province at 07:38 a.m. on Friday (2238 GMT Thursday), said the report.

"The earth observation satellite failed to enter its preset orbit.Scientists, technicians and experts are now looking into the cause of the failure," it said.

The DPRK's failed launch has aroused international concerns, with the United States, Japan and South Korea all condemning the move, which they viewed had breached relevant UN resolutions.

The DPRK has said that its launch is for peaceful purposes and would not harm the region and neighboring countries.




This still from an Analytical Graphics, Inc., video animation depicts North Korea's Unha-3 rocket and Kwangmyongsong-3 satellite in the last leg of a potential orbital launch in April 2012.
CREDIT: Analytical Graphics, Inc.View full size image
North Korea Rocket Launch Envisioned in Video Animation via @SPACEdotcom

North Korea has launched its long-range rocket but the US, Japan and South Korea say it failed shortly after take-off and fell into the sea. There has been no word yet from Pyongyang on the launch. 

North Korea says the aim of the rocket is to launch a satellite but critics say the launch constituted a disguised test of long-range missile technology banned under UN resolutions.

As the world watches and waits to see if North Korea will continue in its bid to launch a long-range rocket despite international warnings, a new video animation reveals just how the space test could occur.

The new video, released late Wednesday (April 11) by the analytical firm Analytical Graphics Inc., covers North Korea's planned Unha-3 rocket launch, showing the flight trajectory from a point just after liftoff through the separation of its satellite payload.


"AGI has used its software to produce a video demonstrating the launch and its possible path, tracking assets and landing zones," AGI officials wrote in a media alert.

North Korean space officials have said the Unha-3 rocket will launch a new Earth-observing satellite sometime between April 12 and April 16 to honor the 100th anniversary of the birth of Kim Il Sung, the founder of North Korea. Critics of the launch, which include the United States, Japan and South Korea, claim the launch is a cover for a missile test that violates United Nations Security Council resolutions. [Images: North Korea's Rocket and Missile Program]

According to AGI's video animation of the Unha-3 rocket launch, the three-stage booster will blast off from the new North Korean launch site near the northwest village of Tongchang-ri, which corresponds with official statements from North Korea and Western observers. The rocket will then head in a southerly direction and drop its first stage in the Yellow Sea well to the west of South Korea, where officials have said they would shoot down any parts of the Unha-3 territory that threatened to fall on South Korean territory.

The next stage of the Unha-3 rocket would likely fall just to the east of the Philippines after the booster's third stage and payload — the Earth-monitoring satellite Kwangmyongsong-3 — separates and heads towards orbit, the AGI animation shows.

If the Kwangmyongsong-3 satellite reaches its intended polar orbit, its trajectory would carry it over a major stretch of Australia after the spacecraft separates from the Unha-3 rocket, according to the AGI depiction.

North Korea's Unha-3 rocket appears to be a liquid-fueled rocket that stands about 100 feet (30 meters) tall. The Kwangmyongsong-3 satellite, meanwhile, is a boxy, solar-powered spacecraft, according to videos and images in media reports, as well as the AGI video.

Exactly which day of the current window North Korea will launch the Unha-3 rocket is not yet certain, though the country's space organization did begin fueling the rocket for liftoff on Wednesday, suggesting a potential launch attempt in upcoming days, according to press reports.
Follow SPACE.com for the latest in space science and exploration news on Twitter @Spacedotcom and on Facebook.

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Sunday, April 1, 2012

Rental Properties: Cash Cow Or Money Pit?


 Investopedia, Contributor
Your home for independent, unbiased financial education on the web.

Real estate investors must have basic valuation skills to make buy, sell, or hold decisions. Real estate investment companies have developed sophisticated valuation models to aid them in making investment decisions. However, by using spreadsheet tools an individual can produce an adequate valuation on most income-producing real estate. This would include residential real estate purchased as residential rental property.

SEE: 3 Ways To Value Real Estate Investments

Valuing real estate using discounted cash flow or capitalization methods is similar to valuing stocks or bonds. The only difference is that cash flows are derived from leasing space as opposed to selling products and services. Read on to find to out how any investor can create a valuation satisfactory enough to weed through prospective investment opportunities.

Individual Valuations

Some individuals feel that producing a valuation is unnecessary if a certified appraisal has been completed. However, an investor’s valuation may differ from an appraisal for several reasons. The investor may have different opinions about the property’s ability to attract tenants or the lease rates that tenants are willing to pay. As a prospective purchaser or seller, the investor may feel that the property has more or less risk than the appraiser. Appraisers are compelled to conduct separate assessments of value. They include the cost to replace the property, a comparison of recent and comparable transactions and an income approach. Some of these methods commonly lag the market, underestimating value during uptrends, and overvaluing assets in a downtrend.

Finding opportunities in the real estate market involves finding properties that have been incorrectly valued by the market. This often means managing a property to a level that surpasses market expectations. A valuation should provide one’s estimate of the true income-producing potential of a property.

Real Estate Valuation

The income approach to evaluating real estate is similar to the process for valuing stocks, bonds, or any other income-generating investment. Most analysts use the discounted cash flow (DCF) method to determine an asset’s net present value (NPV). NPV is the property value in today’s dollars that will achieve the investor’s risk adjusted return.The NPV is determined by discounting the periodic cash flow available to owners by the investor’s required rate of return (RROR). Since the RROR is an investor’s required rate of return for the risks involved, the value derived is a risk-adjusted value for that individual investor. By comparing this value to market prices, an investor is able to make a buy, hold, or sell decision.

Stock values are derived by discounting dividends, bond values by discounting interest coupon payments. Properties are valued by discounting net cash flow or the cash available to owners after all expenses have been deducted from leasing income. Valuing a property involves estimating all the rental revenues and then deducting all expenses required to execute and maintain those leases. (For tips, check out Golden Opportunity For Real Estate Investors.)

All income estimates come directly from leases. Leases are contractual agreements between tenants and a landlord. All rent and contractual increases in rent (escalations) will be spelled out in the leases, as well as options for space and rent concessions. Owners also recoup part or all of the property expenses from tenants. The manner in which this income is collected is also stated in the lease contract. There are three main types of leases:
In full-service leases, tenants do not pay anything in addition to rent. In net leases, tenants usually pay their portion of the increase in expenses for the period after they move into the property. In triple-net leases, the tenant pays a pro-rata share of all property expenses.

The following are the types of expenses that have to be considered when preparing an income valuation:
Leasing costs refer to the expenses necessary to attract tenants and to execute leases. Management costs refer to property level expenses, such as utilities, cleaning, taxes, etc. as well as any costs to manage the property. Income less operating expenses equals net operating income (NOI). NOI is the cash flow derived from normal operations of the property. Cash flow is then derived by subtracting capital costs from NOI. Capital costs are any periodic capital outlays to maintain the property. These include any capital for leasing commissions, tenant improvements, or capital reserves for future property upgrades. (Check out Closing A Real Estate Deal In A Down Market.)

Valuation Example

Once periodic cash flows are determined, they can be discounted back to determine property value. Figure 1 shows a simple valuation design that can be adjusted to value most properties.

Assumption Value Assumption Value
Growth in Income Yr1-10 (g) 4% Growth in Income Yr11+ (g) 3%
RROR (K) 13% Expenses % of Income 40%
Capital Expenses $10,000 Reversion Cap Rate (K-g) 10%
Figure 1

The valuation assumes a property that creates annual rental income of $100,000 in year one, which grows by 4% annually and 3% after year 10. Expenses are estimated at 40% of income. Capital reserves are modeled at $10,000 per year. The discount rate, or RROR, is set at 13%. The capitalization rate for determining the reversion value of the property in year 10 is estimated at 10%. In financial terminology, this capitalization rate equals K-g, where K is the investor’s RROR (required rate of return) and g is the expected growth in income. K-g is also known as the investor’s required income return, or the amount of the total return that is provided by income.

The value of the property in year 10 is derived by taking the estimated NOI for year 11 and dividing it by the capitalization rate. Assuming the investor’s required rate of return stays at 13% then the capitalization would equal 10%, or K-g (13% -3%). In Figure 2, NOI in year 11 is $88,812. After periodic cash flows are calculated, they are then discounted back by the discount rate (13%) to derive the NPV of $58,333.

Item Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr8 Yr 9 Yr 10 Yr 11
Income 100 104 108.16 112.49 116.99 121.67 126.54 131.60 136.86 142.33 148.02
Expenses -40 -41.60 -43.26 -45 -46.80 -48.67 -50.62 -52.64 -54.74 -56.93 -59.21
Net Operating Income (NOI) 60 62.40 64.896 67.494 70.194 73.002 75.924 78.96 82.116 85.398 88.812
Capital -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -
Cash Flow (CF) 50 52.40 54.90 57.49 60.19 63 65.92 68.96 72.12 75.40 -
Reversion - - - - - - - - - 888.12 -
Total Cash Flow 50 52.40 54.90 57.49 60.19 63 65.92 68.96 72.12 963.52 -
Dividend Yield 9% 9% 9% 10% 10% 11% 11% 12% 12% 13% -
Figure 2 (in thousands of dollars)

Figure 2 provides a basic format that can be used to value any income-producing or rental property. Investors purchasing residential real estate as rental property should prepare valuations to determine whether rental rates being charged are adequate enough to support the purchase price being paid. Although appraisers will often use a 10-year cash flow by default, investors should produce cash flows that mirror the assumptions on which the property is assumed to be purchased. This format, although simplified, can be adjusted to value any property, regardless of complexity. Even hotels can be valued this way. Just think of nightly room rentals as one-day leases.

SEE: Real Estate Deal-Breakers That Shouldn’t Be

Buy, Sell or Hold

When purchasing a property, if an investor’s assessed value is greater than the seller’s offer or appraised value, then the property can be purchased with a high probability of receiving the RROR. Conversely, when selling a property, if the assessed value is less than a buyer’s offer, the property should be sold. In addition, if the assessed value is in line with the market and the RROR offers an adequate return for the risk involved, the owner may decide to hold the investment until there is a disequilibrium between the valuation and market value.

Value can be defined as the greatest amount that someone would be willing to pay for a property. When purchasing an asset, financing should not affect the ultimate value of the property because each buyer has different financing options available. However this is not the case for investors who already own properties that have been financed. Financing must be considered when deciding on an appropriate time to sell because financing structures, such as prepayment penalties, can rob the investor of his or her sale’s proceeds. This is important in cases where investors have received favorable financing terms that are no longer available in the market. The existing investment with debt may provide better risk-adjusted returns than can be achieved when reinvesting the prospective sales proceeds. Adjust risk RROR to include the additional financial risk of mortgage debt.

The Bottom Line

Whether buying or selling, it is possible to produce a valuation model accurate enough to assist in the decision-making process. The math involved in creating the model is relatively straightforward and within the grasp of most investors. After gaining some rudimentary knowledge about local market standards, lease structures and how income and expenses work in different property types, one should be able to forecast future cash flows.

READ MORE: Homeowners, Beware These Scams!
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Britain universities in crisis

Universities in crisis as student numbers fall

Colleges that have offered most to poorer students will be biggest losers as impact of fees bites

London: More than 30 universities are facing a 10 per cent fall in student numbers this autumn, according to figures released Wednesday.

A breakdown of next year's university budgets shows that middle-ranking universities and former polytechnics will suffer as a result of the new funding system, which will see tuition fees rise to up to £9,000 a year.

Worst hit, according to the Higher Education Funding Council for England, will be the University of East London and the University of Bedfordshire, which are likely to suffer falls of 12 per cent.

In all, 34 universities in England will have their student numbers cut by at least 10 per cent.

HEFCE estimates there will be 10,900 fewer student places across the country. Academics said it was universities who had done the most to open themselves up to disadvantaged groups that appeared to be suffering the worst cuts.

By contrast, most of the members of the Russell Group – which represents most of the country's leading research institutions – are set to expand student numbers.

Michael Driscoll, chairman of the million+ university think tank and vice-chancellor of Middlesex University, said the overwhelming majority of institutions were losing student places.

"These allocations show the true extent of the Coalition's reform of fees and funding and the cutback in the overall number of university places being funded," he said.

Sally Hunt, general secretary of the University and College Union, added: "At a time when record numbers of people are out of work, the Government should be making it easier for people to access education."

Although overall student numbers have been cut, under the new system universities can recruit beyond their fixed target so long as they take in students with at least two As and a B at A-level.

In addition, 20,000 places have been set aside for higher education providers charging less than £7,500 a year.

As a result, elite universities with a higher percentage of AAB students tend to benefit, as do further education colleges charging lower fees. An extra 65 such colleges are receiving funding for higher education degrees for the first time.

According to HEFCE, just over 10,000 of the 20,000 places for low charging universities have gone to further education colleges. The shake-up appears to have created a "squeezed middle" among universities, which are unlikely to recruit large numbers of AAB students but are still charging higher fees.

Sir Alan Langlands, chief executive of HEFCE, said he did not believe the changes would see universities "going into substantial financial problems". "All of these can cope with this level of reduction," he added. He said they were all "confident they can ride it out". The Independent

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Saturday, March 31, 2012

Personal finance: what rich Asian women want for their money?


Starting today, StarBizWeek features a column on personal finance called Money & You, which will focus on money matters as they relate to YOU. Our two writers will take turns every fortnight to shed light on personal finance matters.

■ Yap Ming Hui is an independent financial advisor and author of five best-selling books on personal finance. He is the managing director of Whitman Independent Advisors, an independent financial advisory firm licensed by Securities Commission and Bank Negara Malaysia. Since 2000, Yap and his team of licensed independent financial advisors have successfully helped numerous clients achieve financial freedom. Yap believes that all Malaysians can fully optimise their wealth using a holistic wealth management approach.
 
Carol Yip, founder of Abacus For Money, believes that if people understand their money mindset, behaviour and money psychology, they can be financially happy and successful. She actively promotes financial literacy and intelligence within families and for women, youths and retirees.

MONEY & YOU By CAROL YIP

WOMEN in Asia are building and inheriting more wealth than ever before. According to Boston Consulting Group (BSG) 2010 report, the percentage of wealth controlled by women in Asia (ex Japan) is rising nearing 30% annually and total wealth controlled by women reached RM2.8 trillion in 2010. Their heightened visibility in financial circles can be traced to more women achieving success in the workforce and a greater number of women actively managing family finances. Kim Sung-Joo recently made her debut on the inaugural Forbes list of Asia's Power Businesswomen in celebration of International Women's Day recently. She is the youngest daughter of an energy conglomerate tycoon in South Korea and created her wealth from luxury fashion.

The increasing number of wealthy women is also partly because they are inheriting wealth due to their longevity. Puan Sri Lee Kim Hua, 81, widow of the late casino magnate Tan Sri Lim Goh Tong, is one of the 40 richest Malaysians on the 2012 Forbes Asia list.

Without a doubt, Asian women are creating significant financial visibility. But are bankers and wealth advisors paying sufficient attention to this alluring segment of the market?

Women of wealth

Based on research conducted in 2011 by the Family Wealth Advisors Council, a network of US-based, independent fee-only wealth management firms, the financial services industry has a long way to go if it wishes to provide the kind of service wealthy women say they want. The title of the study of high net-worth American women says it all: “Women of Wealth: Why Does the Financial Services Industry Still Not Hear Them?”

Involving 551 women across the United States with a net worth of US$1mil or more, the study collected survey questionnaire data across marital status, employment status, age and net worth. The research looked at what worries wealthy women:

About 86% of working women surveyed consider obsolete careers and eroding earning power as risks to their financial success;

Married women believe health challenges present a greater risk to their financial security than the death of a spouse;

About 96% of women want their unique circumstances and their entire life picture understood by their financial advisor;

About 80% of women (either married or divorced) believe that they will be called on at some point to help one or more of their children in a crisis;

About 81% of retirees see a potential decline in the economy as a major risk, versus 45% of full-time working women; and

About 57% of married women feel that divorce poses a significant risk to their financial well-being.

With women's economic clout in the workplace and purchasing power in all consumer and commercial markets increasing, their dissatisfaction with the financial services industry is also growing. The study clearly showed that women do not like to be considered a monolithic group, but want services tailored to their specific circumstances. Evidence suggests that wealthy women in Asia Pacific are also having similar experiences.

Different women different needs 

As more women call the shots on money, they also want their wealth advisors to do a better job of meeting their needs. They want the same attention, advice, terms and deals that men get with advisers who provide investment recommendations. But, at the same time, women want advisors to tailor services to them because they have very different needs and expectations than men.

In the BSG survey, women said advisors tend to assume they have a lower risk tolerance than men, so advisors provide only a narrow range of investment alternatives. Some women claimed that advisors for women are too quick to focus on strategies that don't emphasise on performance, assuming that women are more inclined to make investment decisions based on social issues. With these and other study insights, wealth advisors who service female clients should foremostly recognise that women want to be treated differently. Some suggestions come from the findings:

Women want to be understood as unique individuals. They want an advisor who listens to their needs and is trustworthy. A fiduciary advisor who knows how to create strategic investment allocations based on a women's situation, goals and risk appetite will stand a better chance of securing their business.

Women are looking for advisors who can provide advance planning, relationship management and investment advice a one-stop boutique financial centre.

The wealth advisor's gender plays an important part of the financial planning process for wealthy ladies. Female wealth advisors will be able to relate better to their situations and challenges than men.

Women's investment attitude

It's no surprise that women's behaviour as earners, investors and savers is the subject of a large and growing body of behavioural economic research, which has yielded important findings. Women prefer to focus on long-term investment goals and seek holistic advice. When women invest, they tend to look for informed advice and better rate of return than men. Women can be too conservative in their approach, especially given the fact that they tend to live longer than men. Ultimately, from the way they seek financial information and advice, to their understanding of the long term, women's financial behaviour holds crucial lessons for all financial advisors.

Women may also tend to limit their trading far more than men do. They prioritise by protecting principal rather than taking risks to grow their assets. A study by the University of Michigan's Retirement Research Center finds that men frequently and unnecessarily trade their holdings. All other things being equal, the male participants trade 56% more than their female counterparts, and the more they trade, the worse their performance becomes “a result of a too-rosy estimation of their own investment skills,” the researchers write.

The landmark study on gender differences in stock investing also finds that men tend to sell too early, or to swap assets for new ones that underperformed what they havve sold. By contrast, women are more inclined to take the long-term view and understand that performance in many cases are best measured over time.

Huge potential 

Women's financial behaviour and preferences across varied situations show major differences from men's. Women's financial strengths are significant. So are their challenges.

The provision of tailored wealth management services for wealthy women is much needed. There is a unique opportunity for the financial services industry to design investment, insurance, trust and estate planning products and services that better address women's needs, psychological preferences, life values and different life stages.

Wealth is a “means of life planning rather than a goal in itself” for women. The one-size-fits-all concept is no longer appropriate. Customised fitting is always the preferred choice to make wealthy female clients happy. Wealthy female clients will be loyal customers when wealth advisors deliver the results they want. A long-term trusting client-advisor relationship will be the result.

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China three decades from now



CHINA in the Next 30 Years is a new collection of 17 essays published in October 2011 on the future of China, of which eight authors are foreigners. This is one of the few books published simultaneously in Chinese and English.

Reading the book in both the original and translatied versions gave me sometimes a complete different reading of the authors' sentiments, and I had to go back often to the original to find out what the author was really trying to get at.

This is a valuable book precisely because it reflected not only some of the leading thinkers in China but also a number of very original thinkers outside looking in.

The first essay by Michael Hudson of the Institute for Study of Long-term Economic Trends is nothing short of iconoclastic.

He sees the era of debt-driven consumption in the West (1945-2010) coming to an end, and China in the next 30 years must not only avoid the finance, insurance and real estate bubble (FIRE) trap, where China will be blamed by the West, but also go down a path in strengthening its real economy, solving the wealth gap and improving efficiency (subject to ecological constraints).

The future economic prospects are considered by three leading Chinese thinkers.

Prof Wu Jinglian, the most respected Chinese economist of his generation, argues that reforms have gone into deep waters due to the complex battle against vested interests and rent-seeking activities.

There is no alternative except to deepen reforms, particularly re-balancing the playing field between minyin (private) enterprises and the dominant state-owned enterprises.

Tsinghua University Prof Li Daokui regards the three great challenges facing sustainable development as an open mind, more inclusive and harmonious development and formulating China's role in global affairs as a major power.

Returned scholar Wang Huiyao examines the strengths and weakness of the “Chinese models of development”.

He clearly recognises that the pragmatic and adaptive models of the past may not work in the future as sustainable development faces a more complex, interactive and geo-politically fragile world, especially in the ecological, resources and energy issues.

The political challenges are considered by two thoughtful commentators.

In considering Chinese politics within the geo-political order, Peking University Prof Pan Wei argues that any bright prospects in the next 30 years would depend on three key conditions no economic vacillation, no political distraction and no international partiality.

He refutes the argument that there has been no political reform, since the massive economic reforms could not have been possible without significant changes in China's political system.

At the same time, the pillar of China's politics has been its civilisational constancy, based on its humanist democracy, meritocracy at all levels of government and a unified ruling group.

Fellow Peking University Prof Yu Keping identifies the challenges of governance reform as social inequality, corruption, social instability, crime, environmental degradation and ignorance of citizens' human rights.

He recognises the need for a realistic review of China's socialist democratic theories, but also a rethink of popular Western democratic theories.

On the new global order, Nobel laureate Robert Fogel's essay warns that China's future geo-political position may be stronger than estimated.

Taking a long historical and demographic view, he sees Chinese income per capita being double that of Europe by 2040 and accounting for nearly 40% of world GDP, significantly larger than the United States and Europe.

His higher estimates are due to currently favourable demographics, good education and resilience in the political system, overtaking aging population in the West with a different work and lifestyle.

Singapore diplomat Tommy Koh echoes the recognition that China will become more powerful in terms of soft and hard power, and wishes that China will continue to practice good neighbourliness, play a constructive role in global governance and embrace sustainable development.

Five out of the 17 essays are devoted to green growth, with the best article by Tsinghua Professor Hu Angang, who sees a Green Vision as China's third generation of modernisation.

He powerfully argues that the idea of greenness is essentially the ancient Chinese philosophy of harmony of man with nature and that innovation and realisation of green modernisation is a civilizational objective that has global benefits.

The message of cutting carbon emissions, clean energy, green technological innovation, and central importance of Chinese agriculture and rural development are reinforced by essays by Copenhagen Professor Bjorn Lomborg, Swiss agriculturalist Hans Herren, Worldwatch President Christopher Flavin and Shanghai Professor Li Wuwei.

The last and longest essay is an intriguing and wide-spanning exploration on China's “Civilization-State Model” by Malaysian-born, India-based scholar Tan Chung.

He argues that China is the longest surviving civilization-state that is actually a commonwealth of different tribes, languages and cultural communities that has lived within its borders for more than 2,000 years.



China has absorbed different cultures, particularly Buddhism from India, more recently Marxism from the West and has evolved its own concept of “grand universal harmony.

He actually laments the fact that many modern Chinese scholars have learnt “whole-hog Westernization of China” without drawing upon the inner cultural confidence of ancient China.

His suggestion that Chinese leadership is differentiating between the “kingly way versus the hegemonic way”, echoes an important book by Tsinghua political scientist Yan Xuetong, which I shall review shortly.

Professor Yan argues that modern statecraft depends on kingship, founded by humane authority and strong moral standing.

Hence, for China to be a superpower modeled on humane authority, she has to forge a harmonious society from which other states are willing to learn.

The fundamental contribution of this book is that it has pointed the way on how China intends to move towards a harmonious green economy through the recent 12th Five Year Plan (2011-2015).

This is a bold and arduous journey unprecedented in history in terms of scale and difficulties.

All hopeful global citizens must wish its success, because its failure could have geopolitical consequences beyond contemplation.

Andrew Sheng is president of Fung Global Institute.

THINK ASIAN By ANDREW SHENG

Friday, March 30, 2012

Spy on citizens?

To spy or not to spy on citizens? That’s the question

KUALA LUMPUR: Should governments use “trojan horse” programs or other computer hacking tools to spy on its citizens?

Mikko Hypponen, chief research officer for network security solutions company F-Secure Corp, believes the end does not justify the means. But he admits that there is no clear answer.

 “It's a problematic subject. As long as technology is used to catch drug smugglers or terrorists, that's great.

“But when a government places a trojan on the computer of an innocent person, it is a horrible wrongdoing,” he said recently.

He was in Kuala Lumpur for a meeting at F-Secure's network security monitoring centre in Bangsar South, which covers the Asian region.

The problem has been compounded in recent times because terrorists and so-called “hacktivists” have no qualms about launching cyber attacks against governments and others.

So why shouldn't governments resort “to fighting fire with fire”?

Hypponen said it was a question for each government to mull over because there was no one-size-fits-all solution.

He cited Germany as an example where a government-backed trojan program was set loose on public networks.
Controversy arose in Germany in October last year after a hacker group highlighted what it claimed was a government trojan program to spy on people, Hypponen said.

The program, apparently deployed to help law enforcement agencies, could record Skype calls, monitor online messages, log keystrokes on a computer and even take pictures of the screen.

Hypponen said he was glad to note that such trojan programs had not been deployed in Malaysia.

Last year, Hypponen tweeted about the Anonymous hacker group's threat to attack government websites in Malaysia, which later happened.

> Watch out for the full interview in StarBytz, the information technology pullout of The Star.

By GABEY GOH The Star/Asia News Network

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The digital detective: Mikko Hypponen's war on malware is escalating (wired.co.uk)
The Digital Detective: Mikko Hypponen's Escalating War On Malware (howwecreatevalue.com)

Being grateful is Love, the simple things?


Datuk Seri Idris Jala and the Kelabits have shown that being grateful is a way of showing real humility but it should not be mistaken as being subservient.

THERE was an elderly Kelabit man who had never seen a TV set in his life – not until he visited his son’s modern house.

He sat on the sofa and watched the news and his son noticed that the old man paid special attention to reports on the floods in Kelantan, especially the deaths due to drowning.

The father turned to his son and asked why there were deaths? He was shocked when he was told it was an annual occurrence.

“Why didn’t they just move away from the river? Our people would have just moved to higher ground,” he said.

This story was related to a group of about 30 analysts and journalists at a briefing on Thursday by probably the most famous Kelabit of all, Datuk Seri Idris Jala. The old man was his father Henry Jala.

“That’s how our people are. Our tribe has moved to near the Kalimantan border just to get away from the floods,” said Idris, who is the boss of Pemandu – the government unit set up to implement the New Economic Model and the various transformation programmes.

Pemandu is the acronym for Performance Management & Delivery Unit of which Idris is the chief executive officer. He is also a Minister in the Prime Minister’s Department.

He readily admits his bias towards the rural transformation programme and the key initiative to build basic infrastructure for the rural folk.

“Till today, my village has no electricity supply. Fifteen years ago, our longhouse was burnt down because a woman forgot to put out a candle before going to sleep,” Idris told the audience as he expounded the virtue of the Government Transformation Programme and the Economic Transformation Programme.

(The acronyms of GTP, ETP and Pemandu has become synonymous with Idris.)

The Kelabits, numbering some 5,000, are probably the most successful bumiputra community in Sarawak.

It has been reported that at least 90% of the Kelabits are literate and that some 10% of them have obtained diplomas, degrees, post-graduate degrees and professional qualifications. At least another 1,000 have sat for their Form Five examination.

Besides Idris, the community has got doctors, lawyers, police officers, engineers, millionaire businessmen and top state civil servants.

Ask any Sarawakian about Kelabits, and they will speak of them in a respectful tone with full admiration.
After all, many of the older ones are well-known warriors and war veterans.

One could even say that pound for pound, the Kelabits are the most highly successful community in the country despite their small number.

Idris had told another audience at a more informal setting at Tapis Rouge – a restaurant cum mini-theatre owned by celebrity Datin Seri Tiara Jacqueline – that his people who lived in the Bario Highlands, although led a simple life, were ambitious.

A widely travelled man, Idris told of his life in Holland and Britain and how our country was not that lacking.

“I have always considered my life very blessed. I constantly remind myself that Malaysia has got a lot going for it.

“While we look admiringly at the roses far away, we must not forget the roses that are in our own garden,” he told his audience at his Blues Jam session at Tapis Rouge.

Idris said his favourite quote on this came from management guru Dale Carnegie which went: “It is tragic when we put off living. We dream of a magical rose garden over the horizon and miss the roses blooming outside our windows”.

The strain of leading the Government’s charge to transform the nation into a high-income and developed nation shows on Idris face but his bubbly self seems to shine through whenever he gets his hands on a guitar.

In his closing remarks to the 300-odd friends and supporters who turned up to hear him sing and play the guitar, Idris reminded them that Malaysians must learn to count their blessing and “learn to love the simple things like music, family and roses”.

Come Monday, the 2011 annual reports of the ETP and GTP will be submitted to Prime Minister Datuk Seri Najib Tun Razak live on TV at 8.30pm.

> Executive Editor Wong Sai Wan is still looking forward to a trip to the Bario Highlands to see for himself the Kelabits in their own environment.

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