An American-Made Business Model Has Less Success Overseas

For years, the titans of finance have held out the promise that they could export their business model overseas and mint billions in the process. Yet, there are increasing signs that global deal-making was always a myth.

If you’ve been anywhere near a Wall Street conference in the last five years, you know the drill. Deal makers bemoan the United States as a mature and overregulated economy. They talk about heading abroad, as emerging market economies leave us far behind. To listen to them, one might think the rest of the world was a paradise out of “Atlas Shrugged,” where capital flows and where private equity, investment banks and other investors can freely seek opportunities.

So what country is No. 1 in initial public offerings so far this year? Yes, it is the United States, according to Renaissance Capital, with 75 I.P.O.’s raising $39 billion in total. Compare this activity with China, where 41 I.P.O.’s raised just $8.1 billion.

M&AS

And in mergers and acquisitions? Again, it is the United States, with 53 percent of the worldwide deal volume, up from 51 percent from last year, according to Dealogic. For investment banks, this means that the United States has a 46 percent share of the $63 billion in worldwide investment banking revenue, up from 34.6 percent in 2009.

With the slowdown in once-hot emerging markets, the tide is going out, baring all of the problems and issues associated with global deal-making.

China is a prime example. Huge amounts of foreign and state investment produced an economic miracle. And in that time, wealth was there to be had.

But let’s be clear about where that wealth came from. In the United States, deal makers make money primarily by buying underperforming assets, adding some financial wizardry and riding any improvements in the stock market. Sometimes, they get lucky by making a quick profit, but often private equity works to squeeze out inefficiencies and make operating improvements in companies and then takes them public a few years later.

China's situation

In China, what increasingly appears to have been a stock market and asset bubble spurred by hundreds of billions in direct investment has created some spectacular early profits for deal makers. The private equity firm Carlyle Group, for example, has made an estimated $4.4 billion on an investment in China Pacific Insurance, which it took public on the Hong Kong Stock Exchange.

But now, with the Chinese I.P.O. market at a virtual standstill and the Shanghai market down more than 30 percent from its high last year, that avenue to riches is over. People are starting to say that investment in China resembles a “No Exit” sign.

Deal makers are left with a back-to-basics approach that looks to make money from companies through economic growth or improving their performance. Yet most of these investments are made with state actors and minority positions, meaning that there may be little opportunity to actually do anything more than sit and wait and hope. And you know what they say about hope as a strategy.

It appears that deal makers are starting to realize the problem. Foreign direct investment in China was down 3.67 percent from last year to $9.6 billion, and it is likely to remain on a downward trend.

And China has been among the friendliest places for deal makers. Other emerging markets have been less accommodating. Take India, which has been criticized for excessive regulation, high taxes and ownership prohibitions. David Bonderman, the head of the private equity giant TPG Capital, recently said that “we stay away from places that have impossible governments and impossible tax regimes, which means sayonara to India.”

Foreign issues

The comment about India highlights another problem with foreign deal-making: it’s foreign. Sometimes, the political winds change and local governments that initially welcomed investment change their minds.

South Korea, for example, invited foreign capital to invest in its battered financial sector after the Asian currency crisis. But when Lone Star Investments was about to reap billions in profits on an investment in Korea Exchange Bank, a legal battle almost a decade long erupted as Korean government officials accused the fund of vulture investing.

And the political problems are sometimes not directed at foreign investors. South Africa, for example, is undergoing the kind of political turmoil that can stop all foreign investment in its tracks over treatment of its workers and continuing income inequality. Things are not much better in the more mature economies.

Economic doldrums

Europe is in the economic doldrums, and its governments are increasingly protectionist of both jobs and industry. France, for example, recently threatened to nationalize a factory owned by ArcelorMittal, which sought to shut down two furnaces.

The national minister said the company was “not welcome.” It’s hard to see a deal maker profiting from buying an inefficient enterprise that it can’t clean up without risking national censure.

Buying at a low is the lifeblood of any investment strategy — but this assumes that there will be an uptick, and on the Continent, that is uncertain given the state of Greece and the other indebted economies in Southern Europe.

This is all a far cry from the oratory vision-making at conferences. Now that the global gold rush has ended, the belief that the American way of doing deals is portable is being upended.

Fragmented world

We are left with a fragmented world where capital moves not so freely, the problems of politics and regulation are more prominent and investing in emerging markets becomes what it always has been: the province of more specialized investors who are in tune with the political and regulatory requirements. Regardless, the easy riches that many thought these countries would bring are now far out of sight.

And the winner in all of this is likely to be the much-maligned United States, where the economic conditions and regulatory environment first gave birth to these deal makers.

This is not to say that there will still not be global deal-making or that American multinationals will not continue to expand abroad. Of course, there will still be profits in deals overseas. But the vision that deal-making will instantly and seamlessly go global is increasingly exposed as one that was more a fairy tale than reality.- IHT/NYT

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Steven M. Davidoff, a professor at the Michael E. Moritz College of Law at Ohio State University, is the author of “Gods at War: Shotgun Takeovers, Government by Deal and the Private Equity Implosion.” E-mail: dealprof@nytimes.com | Twitter: @StevenDavidoff

How to ask for a pay rise and get a bonus?

Successful ways to get an increment or bonus - Do not be boastful about your achievements or downplay the role of your colleagues

IT'S now December and year-end is just round the corner. It's also time for reflection about what you have achieved in your current job and what your plans are for next year in terms of your career path.

Taking some time to make such plans is a great way to ensure that you have set yourself in the right direction and how a well-crafted road map can lead you to your outcomes or objectives.

As with every plan, you need to give yourself some private time to set your thoughts in the right direction. Start with choosing a quiet place and give yourself ample time to relax and focus on how the current year has been and what lies ahead that you wish to see happening. Let's look at how you can successfully ask for a pay rise from your bosses if you had met and exceeded your targets and agreed KPIs.

• >Current year reflection is a measure of your achievements

You will need to execute a list which contains information (in bullet points may be sufficient) of the scope of work that you have done during this year and what were the results.

• >Crafting the list of achievements for the year

Start on a monthly overview e.g. January before you proceed to February. That way, you will not miss out any important information for that list. Have the list in a format which details the following in its respective columns:

• >Month

a. From January till November or December if you can already predict the results or outcome.

• >Projects and assignment

a. Note that it cannot be your daily task of following up on calls to clients but must be a sales lead that translated to an actual sales win
b. It can be a group project or one which you did individually

• >People involved

a. If it was a group project, list down the names of your colleagues for clarity
b. List down your role in the project e.g. principal driver or customer liaison person, risk analyst planner (your actual role in the group)

• >Timelines/cost involved

a. Duration from start to completion of project or assignment e.g. weeks or months
b. It could even be completed in a few days time
c. If there were cost investment required which is beyond the time spent on carrying out this programme, place the cost into the column e.g. marketing budget of RM12,000.

• >Objective of the project and assignment

a. What needed to be achieved from this project before it was kick-started
b. What were the challenges or issues that were required to be resolved?
c. What was the sales target in terms of revenue that needed to be realised?

• >Outcome/results achieved

a. The return-on-investment is critical in this column
b. List down the measurable results to be effective e.g.
i. If time was an essence, completion within or earlier than the duration expected or given
ii. If revenue was the outcome, place the amount/value into your outcomes
iii. If cost savings was involved, list down the amount /value saved

• >Conclusion

Chart a simple graph to show your progress on a month-to-month basis based on the agreed KPIs and where you are at now. If you have been with the company for more than two years, create a comparison analysis on your year-to-year progress to showcase your growth. Charts or graphs are easier to read and it gives a clear overview of the results quickly.

What is very important is that the information in that list must be real and a true reflection of what was achieved. Do not list down information which you cannot prove or which is untrue. Be mindful that it's not about having a long grocery list but a list which is impactful in terms of outcomes and results. If there was nothing significant in that month, go to the next month and only list the effective and efficient details in your list.

If your company does not have a performance review/appraisal fixed for year-end, set an appointment with your immediate boss to have that discussion. Be proactive in your approach.

During the discussion, have an open mind that your list may be challenged. Approach your discussion with your boss on a professional manner and never argue your points.

Be diplomatic and highlight the points that you have in your list. Reaffirm your points with facts and in some cases, walk your boss through how it was achieved and the process that was involved.

You may not be the only subordinate your boss has, so, he may not recall each and every project of all his subordinates or the results attached to it. It is advisable to have the discussion with a state of mind that you are showcasing your achievements and not out to prove your boss wrong or to boast of your achievements.

If you know that you have achieved many milestones and have been a star performer, always be humble in your demeanour. Do not be boastful about your achievements or downplay the role of your colleagues on any group projects.

Group projects are always achievable as a result of teamwork no matter how small a role someone else plays. It would be good to share credit on some of the successes by naming some colleagues who had played a critical part in your project list. This reflects your maturity and openness to share credit where it's due. It also shows that you have leadership qualities and values teamwork.

When you ask for a pay rise, you also need to be mindful of the company's performance for the year. Ask yourself if the company has achieved better performance results compared to last year as a benchmark or if your company has achieved the performance results/profits that was targeted at the start of the year based on your CEO/management's direction for the year.

Look internally at your achievement and do a quick Conclusion (as per the list requirements above) on your progress month on month and if possible, compare that with last year's progress. If your company has suffered losses this year, generally it is advisable not to ask for a pay rise. Employees who show loyalty to a company during challenging times will be valued and there are also other ways to measure how the company and its management treat you beyond the pay rise; rewards and recognition (extra annual leave, awards),
good health plan, training and development programme which provided upskilling and personal growth.

Do some research on salary ranges before asking for a pay rise as your pay rise needs to be realistic and based on market rate. Never ask for a pay rise that is unreasonable or which you know the company cannot agree to. Be willing to accept a compromise during the discussion and open yourself to different solutions offered by the company.

As much as we wish to have what our heart desires, there are times we have to face the reality of rejection. If you are successful in getting that pay rise, congratulations but to those who are not successful, do not accept it as a failure or an end to a means.

Things happen for a reason and it may be a call for you to take charge of your own achievements, on your skill sets and, at times, it may be reasons beyond your control such as the company's poor performance as a whole.

Talking HR with Melissa Norman

 Melissa feels that those who invest in their careers do not view salary as the only priority but the job satisfaction and meaningful friendships forged with colleagues and bosses as critical aspects for long-term career fulfilment.

Reading opens up minds

BACK in my first year when I was asked to read cases by my professor, my immediate reaction was to ask how many pages were there to read.

My professor replied: “There’s no harm reading more.”

I also remember attending a scholarship interview where I was asked to give an account of the books I had read.

Proudly I answered: “I did not read any books besides the academic textbooks.”

It is really depressing and shameful that I took pride of my disinterest towards the habit of reading.

This may appear unusual for a law student like me to recount such a disinterest but I am afraid to say that many of my fellow Malaysian friends share such a disinterest, too.

Many students read for the sake of passing their examinations. Many spend time on computer games and working adults may find it tiring to read outside working hours.

As for myself, I turned impatient, disappointed, annoyed and even regretted choosing law as I later found out that I had to read hundreds of pages of cases every week (putting aside the textbooks, commentaries and other journal articles).

Over the years while in law school, I cultivated the habit of reading.

It was hard at the beginning when I had to flip through the dictionary to check the meaning of the words I did not understand, that I lost patience reading the countless pages of books and needless to say I shed many tears in my struggle to finish my law studies.

However, one thing I can assure you is that the sufferings bore fruit. Indeed, they were rewarding. I am no longer sheltered and ignorant.

My general knowledge and vocabulary have increased and with it, my ability to communicate. With the increased knowledge, I can voice an opinion if needed.

The habit of reading opened up my mind that I am now able to see things more objectively than before.

The treasure of knowledge also taught me to keep an open mind and not to accept another’s views blindly.

Reading news and non-fiction illuminates the world for us and reading fiction gives us what non-fiction cannot.

Through reading we travel and through books we find treasures. In those wanderings we find humanity, through the characters we find knowledge.

As how human beings need to be fed, knowledge serves as nourishment for our minds.

Reading opens up the door of knowledge, an important treasure for our country to achieve the 2020 Vision.
So, I urge all of you to cultivate the habit of reading, for yourselves and our country.

JUNE LOH Kulim, Kedah

Get rid of illegal casinos gambling now !

SINGAPORE: Police have arrested five men in a raid on an illegal gambling den in a private apartment at Geylang Road.

I REFER to “Bet illegal casinos can be weeded out” (see below). They should not be allowed to thrive. They are a nuisance and must go.

I hope the enforcement agencies work on this immediately. Stop giving excuses that this cannot be done.

Such nefarious ways and activities must be put to an end. Have the political will to do so and we will see to their demise.

What is also shocking is how illegal massage parlours, budget hotels, nightclubs, pubs, video arcades and other unhealthy businesses have cropped up of late?

Did the state governments give permission for them to operate? Whatever it is, please see to it that they stop functioning.

Their presence is bad. Trust me, nothing good comes from casinos and gambling.

Gambling is addictive and leads to compulsive gambling problems and unhealthy obsessions; it promotes crime, sin, stupidity, laziness, arrogance, greed, selfishness, entitlement and neglect of one’s family, among others.

BULBIR SINGH  Seremban

Bet illegal casinos can be weeded out

IT is known as the street that never sleeps. And for all the wrong reasons.

Because of the proliferation of gambling outlets, businesses along the same street, both legal and illegal, operate non-stop to cater to the demands of the gamblers.

In another part of the Klang Valley, one road is regarded as the hottest gambling spot in town, with 20 outlets along a single stretch.

The Star's investigation into the e-gambling dens in Klang, Selayang, Batu Caves, Kepong and Petaling Jaya reveal that these casinos in the streets thrive because the authorities turn a blind eye to what is going on under their jurisdictions.

Enforcement is lax even when these outlets in highly-popular zones are so easily identified.

We are not talking about illegal activities that operate in the boondocks, where their locations are tightly-kept secrets and you may need special passwords to gain access.

As our expose today on similar outlets in Penang reveals, we are talking about such illegal activities in two of the most developed states in the country.

The local authorities and enforcement agencies are certainly well-equipped to deal with situations like these.

The modus operandi seems simple enough. By day, they are typical business outlets, but by night they transform into bustling gambling dens.

The enforcers should be working round the clock to close them down.

The real action happens after dark, when not only gamblers head to these places, but also others seeking other services, like sex, to unwind after a hard day's work.

One law enforcement official claims that the operators of the illegal e-casinos play “hide-and-seek” with the authorities and often disappear before raids are conducted.

Meanwhile, the local authorities claim that they cannot do anything about the rising gambling menace either because the residents do not complain officially or that the other enforcement agencies are not doing their part.

While that may be the case, such scenarios are common and should not be used as an excuse not to take the necessary action.

The enforcement officials can station themselves in these areas.

The licensing authorities can shut down even the legitimate businesses in the daytime if they have evidence that they are being used for illegal activities at night.

Rather than blame one another over the lack of action, everyone can, and should, work as a team to ensure that our streets come alive, in the day or at night, for only the right reasons.

Otherwise, casinos in the streets will simply spawn crime in the streets.

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Video games turned casinos gambling in Penang

Huge gambling slot machines draw punters to illegal centres

Not so innocent after all: One of the video games arcades that offer gambling slot machines in Sungai Nibong.

GEORGE TOWN: Some video games arcades in Penang are doubling as mini casinos where punters can try their luck on huge gambling slot machines.

One, in Bandar Baru Air Itam here, looks just like any other video games arcade as children, women and the elderly can be seen having a fun time inside the premises.

But it turns out that the main draw at the place are the huge slot machines which can be played by six punters at a time.

For RM10, a punter is given 20 tokens worth 100 credits to gamble with.

At one machine, punters earn credits if they are able to hit targets.

A check revealed that several video games arcades and amusement centres here as well as in Sungai Nibong, Macalister Road and Bandar Baru Air Itam have such slot machines apart from the usual video games for children.

Some even have snooker tables and indoor golf simulation games to make them one-stop entertainment outlets.

These premises are equipped with closed-circuit television (CCTV) cameras and some have tontos (lookouts) stationed outside to sound the alarm if there are enforcement authorities.

Some of the premises are located in secluded shoplots and have tinted windows to avoid detection. There are also operators who only admit regular customers.

Many punters even bring along their spouse and children. While they gamble, their spouse and children play the usual video games.

A punter, who declined to be named, said winning about RM30 a day was enough to pay for three meals.

“But you must know the timing, technique and tactic to win lah,” he said.

Penang police chief Deputy Comm Datuk Abdul Rahim Hanafi said they had “zero tolerance” against the operators of such illegal centres.

He urged those with information to contact the police hotline at 04-2691999.

“Please, furnish us with details of the premises that offer such activities. We will immediately launch a crackdown,” he said. “I won't allow gambling activities in Penang as it will surely cause social problems.”

Penang municipal councillor Iszuree Ibrahim believed that video game arcades could have abused their licences to run such outlets.

“We will not hesitate to revoke their licences and take stern action against them,” he said, adding that the licences had to be renewed quarterly. - The Star

Malaysian living standards declining?

MOST Malaysians who joined the ranks of the employed in the 1970’s can look back and say that they were better off than those doing so now.

Ever since the 1970’s, the increase in salaries in general has lagged behind rising prices of goods and services across the board.

Take the case of a fresh university graduate who joins the public sector. Back in the 1970’s he would be drawing a basic salary of RM750 per month whether he was a doctor, an administrator or an engineer.

The RM750 may look paltry today but back then the sum was enough to cover almost all living expenses plus some balance for savings for the future.

Today, a fresh university graduate who joins the public sector receives a basic salary of about RM2,400 (a three-fold rise over the 1970’s) but he has to spend frugally in order not to be in debt.

The purchase price of a 24ft x 75ft double-storey terrace house, say in Petaling Jaya, was only RM40,000 back in the 1970’s. Today, the purchase price of a similar type of house in a similar location is around RM800,000 (a 20-fold rise).

A 1,200cc Japanese car back then was priced at RM7,000. Today, a 1,200cc local car is priced at RM50,000 (a seven-fold increase) while an imported Japanese version is priced at RM70,000 or even RM80,000 (more than a 10-fold rise).

A plate of economy rice with four dishes back then cost only 60 sen. Today, a plate of economy rice is not so economical costing at least RM6 (a 10-fold jump in price).

A bowl of wantan mee or prawn mee cost only 30 sen back then. Today, a similar bowl costs at least RM3 (a 10-fold rise).

A long-sleeved shirt back then could be bought for only RM5 (locally-made) or RM9 (foreign brand).

Today, a locally-made similar shirt costs RM60 or even RM70 while a foreign branded shirt is well over RM100.

The purchasing power of today’s ringgit has depreciated about 10 times compared to that of the 1970’s.

This effect of a faster rise in prices over the rise the salaries has led to a decline in the living standards of Malaysians in general over time.

This in turn has resulted in a shrinking middle income group and an expanding low income group in Malaysia.

In the 1970’s, a fresh graduate who was employed could be classified as a member of the middle income group.

Today, an employed fresh graduate belongs to the low income group.

Small wonder many people today resort to borrowing for consumption to live through the day.

Credit card companies or even Ah Long have no shortage of clients. The national consumption debt, both public and private, is rising at an alarming rate.

The BR1M1 and BR1M2 are only quick fixes for temporary relief.

In the long run, efforts to generate a sustained increase in productivity are the only viable solutions to address the problems of price of goods rising faster than salaries.

These include downsizing the public sector, reducing corruption, adopting desired policies like meritocracy, raising educational and training standards, and so on.

OLD TIMER Penang The Star/Asia News Network

Japan right-wing party scores landslide election win

Hawkish Shinzo Abe to return as prime minister, vowing tough stance on China

 

Japan's Yoshihiko Noda,the leader of the losing Democratic Party of Japan, told voters: 'I apologize deeply for our failure to achieve results.' (Issei Kato/Reuters

Japan's Liberal Democratic Party ( LDP) won by a landslide in Sunday's House of Representatives election as it solo secured 294 seats in the election.

The LDP's key ally, the New Komeito Party, got 31 seats, helping the two-party coalition gain 325 seats in the lower house.

The Liberal Democratic Party's (LDP) leader Shinzo Abe served as Prime Minister from 2006 to 2007. (Yuriko Nakao/Reuters) Japan's conservative Liberal Democratic Party returned to power in a landslide election victory Sunday after three years in opposition, exit polls showed, signalling a rightward shift in the government that could further heighten tensions with rival China.

The victory means that the hawkish former Prime Minister Shinzo Abe will get a second chance to lead the nation after a one-year stint in 2006-2007. He would be Japan's seventh prime minister in six-and-a-half years.

Public broadcaster NHK's exit polls projected that the LDP, which ruled Japan for most of the post-World War II era until it was dumped in 2009, won between 275 and 300 seats in the 480-seat lower house of parliament. Official results were not expected until Monday morning. Before the election, it had 118 seats.

The results were a sharp rebuke for Prime Minister Yoshihiko Noda's ruling Democratic Party of Japan, reflecting widespread unhappiness for its failure to keep campaign promises and get the stagnant economy going during its three years in power.

With Japan stuck in a two-decade slump and receding behind China as the region's most important economic player, voters appeared ready to turn back to the LDP.

A serious-looking Abe characterized the win as more of a protest vote against the DPJ than a strong endorsement of his party.

"I think the results do not mean we have regained the public's trust 100 per cent. Rather, they reflect 'no votes' to the DPJ's politics that stalled everything the past three years," he told NHK. "Now we are facing the test of how we can live up to the public's expectations, and we have to answer that question."

The ruling Democrats, which won in a landslide three years ago amid high hopes for change, captured less than 100 seats, exit polls indicated, down sharply from its pre-election strength of 230.

Calling the results "severe," Noda told a late-night news conference he was stepping down to take responsibility for the defeat.

'It was the voters' judgment to our failure to live up to their expectations.'—Prime Minister Yoshihiko Noda on his party's loss

"I apologize deeply for our failure to achieve results," he said. "It was the voters' judgment to our failure to live up to their expectations during our three years and three months of leadership."

The LDP will stick with its long-time partner New Komeito, backed by a large Buddhist organization, to form a coalition government, party officials said. Together, they will probably control about 320 seats, NHK projected — a two-thirds majority that would make it easier for the government to pass legislation.

Noda said a special parliamentary session would be held before year-end to pick a new prime minister. As leader of the biggest party in the lower house, Abe will almost certainly assume that post.

The new government will need to quickly deliver results ahead of upper house elections in the summer. To revive Japan's struggling economy, Abe will likely push for increased public works spending and lobby for stronger moves by the central bank to break Japan out of its deflationary trap.

'Restore some national pride'

Still, some voters said they supported the LDP's vows to build a stronger, more assertive country to answer increasing pressure from China and threats of North Korean rocket launches. Abe has repeatedly said he will protect Japan's "territory and beautiful seas" amid a territorial dispute with China over some uninhabited islands in the East China Sea.
 
The nationalistic, populist Japan Restoration Party is also expected to capture a few seats and perhaps, form a coalition with the new ruling party. (Yuriko Nakao/Reuters)

 "
I feel like the LDP will protect Japan and restore some national pride," Momoko Mihara, 31, said after voting for the Liberal Democrats in the western Tokyo suburb of Fuchu. "I hope Mr. Abe will stand tall."

The LDP may also have benefited from voter confusion over the dizzying array of more than 12 parties.

One of the new parties, the right-leaning, populist Japan Restoration Party, won between 40 to 61 seats, NHK projected. The party, led by the bombastic nationalist ex-Tokyo Gov. Shintaro Ishihara and Osaka Mayor Toru Hashimoto — both of whom are polarizing figures with forceful leadership styles — could become a future coalition partner for the LDP, analysts said.

Ishihara was the one who stirred up the latest dispute with China over the islands when he proposed that the Tokyo government buy them from their private Japanese owners and develop them.

In this first election since the March 11, 2011, earthquake, tsunami and nuclear disasters, atomic energy ended up not being a major election issue even though polls show about 80 per cent of Japanese want to phase out nuclear power.

'We're not like Germany'

In the end, economic concerns won out, said Kazuhisa Kawakami at Meiji Gakuin University.

'The economy has been in dire straits these past three years, and it must be the top priority.'—Shinzo Abe

"We need to prioritize the economy, especially since we are an island nation," he said. "We're not like Germany. We can't just get energy from other countries in a pinch."

The staunchly anti-nuclear Tomorrow Party — which was formed just three weeks ago —captured between six and 15 seats, NHK estimated.

Abe's Political History

During his previous tenure as prime minister, Abe pursued a nationalistic agenda pressing for more patriotic education and upgrading the defence agency to ministry status.

He also insisted there was no proof Japan's military had coerced Chinese, Korean and other women into prostitution in military brothels during Japan's wartime aggression in Asia. He later apologized but lately has suggested that a landmark 1993 apology for sex slavery needs revising.

Abe has said he regrets not visiting Yasukuni Shrine, which enshrines Japan's war dead, including Class-A war criminals, during his term as prime minister. China and South Korea oppose such visits, saying they reflect Japan's reluctance to fully atone for its wartime atrocities.

Tomorrow Party head Yukiko Kada said she was very disappointed to see LDP, the original promoter of the nuclear energy policy — and still the most pro-nuclear party — making a big comeback.

Abe, 58, is considered one of the more conservative figures in the increasingly conservative LDP.

It remains to be seen how he will behave this time around, though he is talking tough toward China, and the LDP platform calls developing fisheries and setting up a permanent outpost in the disputed islands, called Senkakus by Japan and Daioyu by China — a move that would infuriate Beijing.

The LDP wants to revise Japan's pacifist constitution to strengthen its Self-Defence Forces and, breaching a postwar taboo, designate them as a "military." It also proposes increasing Japan's defence budget.

It's not clear, however, how strongly the LDP will push such proposals.

"The economy has been in dire straits these past three years, and it must be the top priority," Abe said in a televised interview. "We must strengthen our alliance with the U.S. and also improve relations with China, with a strong determination that is no change in the fact the Senkaku islands are our territory." - CBCnews

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China Dream a nightmare for others?

New Communist Party chief Xi Jinping’s ‘China Dream’ speech raises concern among foreign countries, especially those locked in territorial disputes with China, such as Japan, Vietnam and the Philippines.

THE “China Dream” is a phrase that has appeared in plays and books, but it recently got an airing at the topmost echelon of power when new Communist Party chief Xi Jinping used it to rally the nation.

Making his second speech since taking over as China’s top leader last month, Xi outlined what he deemed the greatest dream for China: realising the revival of the Chinese nation.

He said: “Everyone is talking about a China Dream. I believe the revival of the Chinese nation is the greatest dream of the nation since modern times. We are at the closest point to the Chinese nation’s resurgence than any time in modern history... and I am sure we will accomplish our goal.”

Xi’s choice of words has sparked a new craze over the phrase China Dream, with netizens rendering their own definitions of “zhongguo meng”, such as a corruption-free country.

Many believe the new leader was trying to mobilise domestic support for his agenda of continuing reform and opening up, by inspiring people towards a China Dream – the title of a 1987 play about a Chinese couple dreaming of success in the United States.

“It also serves to galvanise the people’s support and rally the public around the new administration’s economic and political agenda,” said Professor Wang Dong, an international studies expert at Peking University.

But a closer analysis of Xi’s speech makes one wonder if there is cause for concern for foreign countries, especially those locked in territorial disputes with China, such as Japan, Vietnam and the Philippines.

First, he chose to make the speech at the National Museum, where he and six other members of the apex Politburo Standing Committee had viewed the iconic China’s Road To Renaissance exhibition late last month.

Visitors tend to spend at least two hours at the exhibition, which begins with narratives of China as a weak country that suffered humiliating defeats and the loss of sovereign territories to foreign powers around the early 1900s.

It then traces the country’s efforts to rise from the ashes, which gained speed after the reforms and opening up under late leader Deng Xiaoping in 1980s.

Given the symbolic setting, the natural fear is that part of Xi’s China Dream may include taking a tougher stance towards foreign countries that China perceives to be threatening again to grab its territories.

There were hints in his speech when he said: “Looking back at our past, we can see that if we are lagging behind, we will suffer beatings. Only when we advance, then can we be strong.”

Also, the phrase “China Dream” evokes memories of a 2010 book by a People’s Liberation Army officer, which advocated a speedy strengthening of China’s military might or risk being sidelined by the US.

In his Chinese-language book, The China Dream, Senior Colonel Liu Mingfu wrote that “as long as China seeks to rise to become world No. 1... then even if China is more capitalist than the US, the US will still be determined to contain it”.

“If China in the 21st century cannot become world No. 1, cannot become the top power, then inevitably, it will become a straggler that is cast aside,” added Col Liu, who is a professor at the National Defence University.

If Xi was indirectly backing Col Liu’s beliefs, it could hint at more aggressive moves by Beijing in dealing with foreign countries in future.

For some, it may have already happened. On the day Xi sketched his idea of the greatest dream for China, news broke that police in southern Hainan province would get new powers to intercept foreign ships in the contested South China Sea.

Though it is unclear whether the new rules taking effect next month would be limited to only Hainan island’s territorial waters within 12 nautical miles, the move has given some of its neighbours sleepless nights.

It has also unnerved non-claimant countries such as Singapore, which places great value on regional peace and freedom of navigation.

To be fair, China is not the only claimant state stirring up the waters in the maritime hub lately. Others have taken similar actions.

Also, to be sure, some believe that Xi’s China Dream pertains mostly to improving the people’s lives through better jobs and better rule of law.

In that sense, it does not differ much in essence from the American Dream, which promises equal and fair opportunities for all, in pursuit of a better life. Or the Singapore dream, which epitomises the prospects of a successful life gained through hard work.

But niggling concerns remain, given that China’s new commander-in-chief could fan or yield to more nationalistic sentiments by taking a more hawkish foreign policy stance, particularly if domestic political problems persist.

Said Professor Taylor Fravel, a China expert at the Massachusetts Institute of Technology: “Xi’s speech suggests that he may be more willing to invoke nationalism, but at this point it is too soon to tell how this will affect China’s foreign policies.”

After decades of promising a peaceful rise, it would be a shame if Beijing starts to grow its might at an unhealthy pace or flex it aggressively, which could worsen already frayed ties with its neighbours and destabilise the region.

While China and its people are entitled to pursuing their dream after decades of setbacks, it is also in the country’s interest to continue to act like a responsible global power by showing sensitivity to others in the region.

A dream for China should not become a nightmare for the rest of the world.

By Kor Kian Beng, China Correspondent  The Straits Times/Asia News Network