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Saturday, June 6, 2015

South Korea declares war on MERS

A family of tourists wearing face masks stand on a street in the popular Myeongdong shopping area in Seoul, on June 4, 2015 (AFP Photo/Ed Jones) 

Seoul (AFP) - South Korea reported on Friday a fourth death from Middle East Respiratory Syndrome (MERS), as an infected doctor fuelled fears of a fresh surge in cases and prompted Seoul's mayor to declare "war" on the virus.

Five new cases overnight took the number of infected people to 41 in what has become the largest MERS outbreak outside Saudi Arabia, with close to 2,000 people in quarantine or under observation.

The latest fatality was a 76-year-old male patient who died Thursday after testing positive for the virus on May 21.

Criticised for its lack of transparency in addressing the health scare, the Health Ministry finally confirmed the name of the hospital where the first patient to be diagnosed with MERS was treated.

The ministry said anyone who had visited the hospital in Pyeongtaek, about 65 kilometres (40 miles) south of Seoul, between May 15-29 should report to a clinic for screening.

The government had initially declined to name any hospitals treating cases of MERS, for which there is no vaccine or cure, arguing it could cause them unfair commercial losses.

- Infected doctor fuels fears -

Of particular concern was the positive test of a doctor at a major Seoul hospital who was understood to have taken part in public meetings attended by up to 1,500 people while infectious.

Seoul Mayor Park Won-Soon criticised the government for not sharing information about the doctor's movements, and said his administration would take the lead in ensuring public safety.

"From now on, Seoul city is embarking on a war against MERS. We will take swift and stern measures... to protect the lives and safety of our citizens," Park told reporters Friday.

Health Minister Moon Hyong-Pyo apologised for the public anxiety caused by the outbreak, but rejected Park's criticisms, saying the mayor was encouraging "mistrust and misunderstanding".

The government had been handling the doctor's case carefully to avoid public panic, Moon added.

More than 1,000 schools, from kindergartens to colleges, have temporarily shut down across the country, while the government's MERS hotline has been taking thousands of calls a day.

According to the World Health Organisation (WHO) MERS has now infected 1,179 people globally, with 442 deaths. More than 20 countries have been affected, with most cases in Saudi Arabia.

The virus is considered a deadlier but less infectious cousin of Severe Acute Respiratory Syndrome (SARS), which killed hundreds of people when it appeared in Asia in 2003.

- Possible mutation? -

The WHO has said it expects more infections in South Korea, while stressing there was currently "no evidence of sustained transmission in the community".

A health ministry statement said a WHO team would visit next week, citing concerns that the virus has been showing a "slightly different" pattern from the one detected in Middle East.

"We have yet to determine whether there has been any mutation," said Choi Bo-Yul, the head of a civilian task force set up to help with the outbreak.

Among the recent infections was an Korean Air Force chief master sergeant, who represented the first MERS case among members of the military.

The airman is serving at the air base in Osan, south of Seoul, which also hosts the US 51st Fighter Wing.
In a message to base personnel, the fighter unit's chief medical officer, Colonel Krystal Murphy, said around 100 people who had been in contact with the infected man had been asked to remain at home.

"We recommend everyone exercise caution and use good hygiene practices to prevent any further spread," Myers said.

A large number of public events have been cancelled and organisers of the World Student Games in the southwestern city of Gwangju next month admitted they were "very anxious."

"No country has cancelled so far, but obviously we're keeping a close eye on what is a worrying situation and hope it will come under control soon," an official with the Universiade's organising committee told AFP.

Thursday, June 4, 2015

Malaysia's 1MDB's questionable accounts


Summary raises  questions over spending. It shows where money went but fails to debunk critics.

In acquiring assets of RM13.7 bil, it incurred RM5.4 bil in cost of financing working capital and foreign exchange cost  between 2010 & 2014 - Accountant.

PETALING JAYA: Controversial 1Malaysia Development Bhd (1MDB) has given a brief summary of how it has incurred a RM41.8bil debt bill in a space of five years.

While the explanation showed where the money raised has gone to, it did not debunk criticism on why a sum of RM15.4bil raised locally and some of it guaranteed by the Government, are placed with funds outside the country for purposes of investments and as security deposit for loans.

It also reveals a staggering RM4.5bil that 1MDB has incurred in financing and capital cost and RM900mil in foreign exchange cost, which accountants describe as a sizeable amount that needs to be explained further.

1MDB president and group executive director Arul Kanda Kandasamy said the clarification on the use of its RM42bil debt was necessary to address allegations that RM27bil was “lost” or “missing”.

“In recent weeks, there has been much speculation about the use of RM42bil of debt raised by 1MDB, and more specifically that RM27bil of the debt proceeds are allegedly “lost” or “missing”.

“We provide a summary of what the RM42bil debt has been used for, information that is fully disclosed in 1MDB’s audited and publicly available accounts from March 31, 2010 to March 31, 2014.


“We trust this clarification will help to clear any confusion on this matter,” he said in a statement.

One of the strongest critics of 1MDB is former Prime Minister Tun Dr Mahathir Mohamad who has said that he could not account for some RM27bil of the RM42bil in debts carried by 1MDB.

In the summary, 1MDB for the first time revealed how much it has placed as investments with foreign funds and amounts deposited as security with Middle East funds for guarantees on loans.

The funds for investments are placed with Brazen Sky that has received RM6.1bil and GIL Funds that is holding RM5.1bil.

A sum of RM4.2bil has been placed with Aabar Investments Deposits as security for a US$3.5bil(RM12.9bil) bond issued by 1MDB in 2012. The bonds were issued when 1MDB acquired power plants from T. Ananda Krishnan’s Tanjong Group and the Genting Group in 2012.

The purchase of the power plants was the biggest item in 1MDB’s shopping list. However, the power plants came with a debt of RM6bil, which means 1MDB incurred a cash outlay of only RM12bil to buy the assets, although it lists RM18bil in its summary.

The next biggest item in the Finance Ministry-sponsored fund is a sum of RM1.7bil it paid to acquire three parcels of land – the Tun Razak Exchange and Bandar Malaysia in Kuala Lumpur and 234 acres (94.6ha) in Air Itam, Penang.

1MDB refuted allegations that the three parcels of land cost RM2.1bil, pointing out that the amount incurred was RM1.7bil.

The fund said it paid RM200mil for the TRX land and RM400mil for 495 acres (200ha) in Sungai Besi that is now known as Bandar Malaysia.

Both parcels of land are among the last pieces of large developments left in the city and had been the target of several prominent groups before it was given to 1MDB without any competitive tender.

Since 2011, 1MDB has re-valued the 72-acre (29ha) TRX development and the Bandar Malaysia parcel several times to reflect its soaring valuations.

The two developments now carry a combine value of RM4.3bil.

However, an accountant said the cost of financing and working capital incurred by 1MDB to acquire the assets and run its operations at RM4.5bil was on the high side.

“It raised debts to acquire power plants and three parcels of land. The other amounts raised were largely placed with fund managers as investments or as security deposits. Investments placed with fund managers should give returns and not incur financing cost.

“Similarly, the deposits should also give returns and not incur financing cost,” said the accountant.

The accountant pointed out that stripping out the investments placed with the funds outside Malaysia and the debt of RM6bil inherited when acquiring the power plants, the actual cash outlay 1MDB incurred in acquiring the power plants and three parcels of land was RM13.7bil.

“In acquiring assets of RM13.7bil, it incurred RM5.4bil in cost of financing, working capital and foreign exchange cost between 2010 and 2014.

“That needs further explanation. Without a breakdown in how much was the finance cost and working capital it is difficult to say whether the funds were well utilised,” said the accountant.

By M. Shanmugam The Star/Asia News Network

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Wednesday, June 3, 2015

Regulators act on complaints: MIA to name and shame errant professionals

We have a due process to investigate any complaints made against any of our members,” MIA chief executive officer Ho Foong Moi (inset pic) told StarBiz.

PETALING JAYA: The auditors who signed off on the controversial 1Malaysia Development Bhd (1MDB) accounts will be investigated by the Malaysian Institute of Accountants (MIA).

Confirming this to StarBiz, MIA chief executive officer Ho Foong Moi said this was following complaints made by an Opposition Member of Parliament (MP).

DAP’s Petaling Jaya Utara MP Tony Pua had made two complaints to MIA, one in March and another in May.

“We have a due process to investigate any complaints made against any of our members,” Ho said.

MIA would not say when it aimed to complete the investigation. Ho said the deadline would depend on many factors as the case was complex.

“It also depends on whether we can obtain the relevant documents as well as prompt responses from the relevant parties,” she said.

On how impartial the probe would be, given that several council members of the MIA also work for three firms or the Accountant General’s office – who are involved with 1MDB – Ho said that any conflicted party would not be involved in the MIA investigation.

Three of the Big Four accounting firms were at one time or another working for 1MDB. The three are Ernst & Young, KPMG and Deloitte. The Accountant General’s Department is an authority under the Finance Ministry and advises the minister on who to appoint to the MIA council. Nine out of the MIA’s 29 council members work for the three firms or the Accountant General’s office.

The RM42bil debt chalked up by 1MDB has been the interest of many, but this is the first time the MIA is stepping in.

There have been previous calls for it to check on the auditors. The chairman of the Public Accounts Committee, which is holding an inquest into 1MDB, said he had found some accounting issues.

Datuk Nur Jazlan Mohamed said a few major accounting principles seemed to have been stretched to achieve the unqualified opinion in 1MDB’s 2014 accounts.

He called for regulators like the MIA and the Audit Oversight Board to step up and enforce the law. But the board has made it clear that it has control only over auditors of public listed companies.

The MIA, on the other hand, is a regulator for the accountants in Malaysia. The body has the power to investigate and punish members. It can even bar members from practising. But Ho stressed that the body can investigate only individuals, and not firms.

When the misconduct is less serious, the MIA can reprimand or fine the member. The MIA can also suspend a member for up to three years.

Move to name and shame errant auditors

PETALING JAYA: The regulator of audit firms in Malaysia has raised the issue of firms not fixing problems it had raised during inspections.

To put pressure on such firms, the Audit Oversight Board (AOB) will to make its inspection report public.

“We are concerned that audit firms may have started to be complacent with the deficiencies and issues raised in our inspection reports and have not given the required attention to the effectiveness of their remediation plans as indicated earlier to the board,” said executive chairman Nik Mohd Hasyudeen Yusoff in the AOB annual report 2014.

He noted that while firms have been enhancing their quality control, the board had found little actual improvement.

Last year, the board set stricter conditions for registration. It refused an application for recognition by a foreign audit firm because that firm failed to meet the board’s standards.

Also, the board acted against another firm for failing to meet critical measures on independence.

The board said new and revised standards next year would be a possible game changer to raise the quality of auditing and financial reporting in the country.

It was referring to the rules from the International Auditing and Assurance Standards Board that take effect on Dec 15, 2016.

Nik said these new standards would require auditors to put in key audit matter disclosures in their reports.

This would make the reports tailored to the clients rather than the mostly standard terms and boilerplates.

The board expects this to give more insights “of the risks surrounding a particular reporting entity and some of this may have market impact”.

The annual report said there was no major change in the number of registered and recognised audit firms and individual auditors.

Six major audit firms and four others audited 957 public-interest entities (PIE), covering 98.6% of the market capitalisation of public listed companies in Malaysia in 2014.

Last year, the AOB acted against a firm and two individual auditors.

It was the first time it had barred a firm from accepting any PIE as a client for 12 months. The firm also had to pay a penalty of RM30,000. In the past, the penalties were limited to a reprimand and the highest fine was RM10,000.

Regulator AOB expects and has mechanism to ensure audit firms strictly adhere to the laws

PETALING JAYA: The Audit Oversight Board (AOB), which has taken enforcement actions against two individual auditors and an audit firm last year, expects audit firms to adhere strictly to the laws.

“AOB has in place a robust enforcement mechanism with sufficient safeguards to ensure that fairness and justice will prevail,” it said.

From April 2010 to December 2013, eight auditors were sanctioned for failure to comply with the recognised auditing standards in the performance of their audit of the financial statements of public-interest entities (PIE) and failure to comply with the ethical and professional standards of the Malaysian Institute of Accountants by-laws.

In 2014, action was taken against two auditors and one audit firm.

AOB has prohibited Wong Weng Foo & Co from accepting PIE clients for 12 months. The audit firm was also imposed a penalty of RM30,000.

The AOB has also rapped two registered auditors, Lim Kok Beng of Ong Boon Bah & Co and Chan Kee Hwa of Khoo Wong & Chan, for non-compliance.

They were reprimanded for not complying with the International Standards on Auditing while auditing the financial statements of public interest entities.

In addition to the reprimand, a penalty of RM10,000 was imposed on Lim

Salaries of audit firm employees higher than fees



PETALING JAYA: For the first time in two years, growth in employee costs has outstripped audit fees among Malaysian firms.

While the growth in audit fees has dipped by a quarter from 12% to 9% in the past year, the growth in staff cost has remained constant for the past two years.

There has been higher headcounts in the past year, which rose by 6.6%, according to the Securities Commission’s Audit Oversight Board’s (AOB) annual report 2014. “Based on three years of analysis of the top 10 audit firms, salary costs continue to increase at a higher rate compared with the growth in the audit fees, which is a challenge for audit firms,” the board said.

Staff turnover was also another concern.

While the overall turnover has stabilised at about a quarter of the staff each year, the non-executives were leaving at a higher rate.

“This is a concern as turnover at this level may indicate the lack of attractiveness of audit as a career among younger accountants, which could be detrimental in the long term,” it said.

The report is compiled from 10 top audit firms, which collectively audited 957 public-interest entities (PIEs) covering 98.6% of the market capitalisation of public-listed companies in Malaysia.

The number of registered audit firms had decreased from 83 in 2010 to 52 last year.

The number of registered auditors has remained stable for the past five years. The number of registered auditors rose to 304 individuals in 2014 from 302 in 2013.

The annual report, AOB’s fifth, was released yesterday. AOB also questioned audit deficiencies for major firms. AOB inspects accounting firms regularly to promote and develop an effective audit oversight framework and promote confidence in the quality and reliability of audited financial statements in Malaysia.

Sources: The Star/Asia News Network

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Monday, June 1, 2015

China committed to upholding peace, stability in S. China Sea island-building, rejects US criticism to isolate China in Asia

Admiral Sun Jianguo, deputy chief of staff of China's People's Liberation Army (PLA) addresses the fourth plenary session of the Shangri-La Dialogue in Singapore, May 31, 2015. Sun Jianguo elaborated on China's foreign and defense policies. (Xinhua/Bao Xuelin)

http://english.cntv.cn/2015/06/01/VIDE1433110801945569.shtml
China must insist on island-building

During the just-concluded Shangri-La Dialogue, military representatives from China and the US did not engage in the bitter brawling predicted by the media. Both sides have reaffirmed their own stance. US Defense Secretary Ashton Carter asked all claimants, especially China, to cease island-building in the South China Sea, and by cautiously skirting around the question of how the US will respond if China continues its construction activities, Carter didn't issue further threats against China.

But the US is still able to launch more provocations in this region, perhaps by sending surveillance planes and warships to the periphery of 12 nautical miles from China-controlled islands.

No matter how disturbing the US can be, China must not stop its construction, which is in line with China's sovereign integrity. If Beijing backs off due to Washington's threats and some Western countries' protests, this will create a horrific precedent, which will embolden US-led forces to set tougher positions against China. China should try its best to inject prosperity into the South China Sea, promoting regional economic development and enhancing its disaster resistance ability. Only in this way will the ongoing quarrels calm down.

If China can play its cards right, these expanded islands will not only prevent the South China Sea situation from becoming intensified, but initiate a new constructive thinking for regional development. China's construction activities will offer an opportunity to break the vicious circle that has been haunting the South China Sea for decades.

These expanded islands will allow China to acquire more initiative to carry out its South China Sea policies. For now, it is China that values regional peace more than any other state, because the stability of the South China Sea is a prerequisite for China to make use of this important period of strategic opportunities.

As of now, military confrontation is still the last choice for all stakeholders in the South China Sea. However, different desires and expectations have caused the complexity in the South China Sea issues. When China can set a firm foothold in the area, it will bring along more elements that can drive peace and stability.

China needs to make broad plans including countermeasures against more US intrusions. Beijing should be fully prepared, both mentally and physically, for possible military conflicts with the US. China needs to clearly express its unwillingness as well as fearlessness to fight. The more prepared China can be, the lower the possibility of military conflict.

This round of contest in the South China Sea is more like a strategic dialogue, through which China and the US can come up with a set of models and principles under which they can show mutual respect around China's offshore areas.

If China insists on its island construction, publicizes its peaceful purposes, and avoids making these expanded islands a focal point of Sino-US military competition, we believe it will be eventually accepted by the widest number of parties concerned. - Global Times

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Saturday, May 30, 2015

China's plan to lead the globe?

As tensions in the South China Sea between the US and China continue to rise, the US Navy and Air Force are quietly gearing up to fight a war in the disputed region.

If necessary, that is. Both sides say they don’t want any military confrontation on China’s extensive coastal waters, but both are acting as if a military conflict is increasingly likely.

Optimists say that a peaceful resolution of China’s rise as a great power is achievable. The economies of the two powers are so enmeshed that a war sounds unthinkable.

Such is the thesis of an important new book just out, “The China Dream,’ by Professor General Liu Mingfu (px), a leading Chinese military thinker and commentator who speaks with the voice of China’s military.

US-China trade accounted for $579 billion last year. Beijing holds $1.2 trillion of US Treasury securities, thus financing a big part of America’s massive trade deficit. China claims its low-cost exports to the US saved American consumers $600 billion in recent years.

China only wants its place in the sun, say its strategists, using the same words as German strategists did before World War I. It’s time for a multi-polar world. The age of American world empire is over, writes Liu Mingfu, words that will not endear him to Republican hawks and neoconservatives.

Pessimists retort that Britain and Germany fought two world wars even though they were major trading partners. History is replete with examples of rising powers eventually going to war with the status quo powers resisting their rival’s economic and military growth. The Franco-British-Russian alliance against Germany prior to World War I is a perfect example.

One need not be a swami to see that China’s surging power will soon clash with that of the American hegemon. The battle lines are already drawn: China’s aggressive claims to the South China Sea – viewed by the US Navy as an American lake. Taiwan. Tensions over Burma. Korea. China’s access to the open seas.

According to Prof. General Liu, the days of America’s world domination, or hegemony, as he terms it, are just about over. By 2030, China will be the world’s largest economy in absolute terms (today it rivals the US in purchasing power parity), regaining the geopolitical primacy it formerly enjoyed until the 1500’s when it was the world’s leading economic power.

The US must find a way to accommodate China’s growing power, a point also made for many years by this writer. A policy of containment is not likely to work unless India becomes a principal participant. My first book “War at the Top of the World” deals with the scenario of a future India-China war in the Himalayas, Karakoram and Burma. India has been very cautious in joining any American-sponsored alliance against China.

Liu writes that America must quietly cede some of its power to China in the same manner that the British Empire did to the United States after 1900. The United States and China must share power and jointly rule the world as benign hegemons.

He insists that China has no territorial ambitions and never will. “China suffered 470 foreign invasions within 65 years from 1840 to 1905,” asserts Liu, though incursions would be a more accurate term. During this period, China was raped and pillaged by the western colonial powers and Japan. Hatred of Japan seethes throughout Liu’s book, as it does among most Chinese.

One could argue that China’s annexation or ‘reunification’ of Tibet and Sinkiang were aggressions. China considers them part of historical China, along with truant province Taiwan.

Liu points out that China never invaded or seized its smaller neighbors Korea, Burma, Thailand, or Laos.

Instead, China’s emperors always preferred to dominate without aggression so that its smaller neighbors respected the will of China and acted respectfully – rather as the United States in the 20th century with Latin America. China, writes Liu, wants peace and prosperity in order to keep growing its economy. China remains an inward-looking colossus, content to be the Middle Kingdom.

America, according to the undiplomatic Liu, is a paranoid giant, afraid of the outside world and addicted to the need for enemies abroad. “Americans feel lost without any enemy.” Washington’s occupation and despoliation of so many countries, notably in the Muslim world, generates endless enemies and a war psychosis. America, he claims, is a half-democracy: democratic at home but promoting dictatorships abroad. He seems to believe that China is as democratic at home as the US – a claim that defies reality.

Liu asserts that China is devoted to peaceful relations, non-interference in other nations, and the desire to help build world prosperity, not just its own power or political system. What’s more, Liu modestly asserts, China should lead world development since Chinese are more intelligent and cultured than any other people and heirs to a 5,000-year history!

Interestingly, Liu depicts the 1950 Korean War as a major victory for China because it showed that an Asian nation could fight off the world’s greatest military power. He claims that the US did not invade North Vietnam out of fear of the Chinese People’s Liberation Army after its bloody experience in Korea.

Will Washington back off and allow China to be the master of Asia? It seems highly doubtful. But unless some kind of modus vivendi is found, a military confrontation is likely to follow, one that the US might very well loose. China would be fighting virtually at home or just off its coast. The US, by contrast, would fight thousands of miles across the Pacific from its distant bases. The US might even win, but China would undoubtedly come back for more.

The “China Dream” thesis has been actively taken up by China’s communist leadership. But two things might derail China’s rise to world domination. First, China’s history is replete with example of internal strife, civil wars, and regionalism. This “Chinese curse” could come back to haunt Beijing.

Second, as I read Liu’s panegyric to Chinese greatness and peaceful humanism, I kept recalling Lord Acton’s wise maxim about absolute power corrupting absolutely. It happened in Washington, and there’s no reason why it might not occur in Beijing.

 By Eric S. Margolis who is an award-winning, internationally syndicated columnist. His articles have appeared in the New York Times, the International Herald Tribune the Los Angeles Times, Times of London, the Gulf Times, the Khaleej Times, Nation – Pakistan, Hurriyet, – Turkey, Sun Times Malaysia and other news sites in Asia. http://ericmargolis.com/

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Friday, May 29, 2015

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



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


US takes dangerous gamble in S.China Sea

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

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

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

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

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

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

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

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

US tarnishing China’s image to scare ASEAN

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

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

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

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

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

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

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

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

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

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

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

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Singapore Prime Minister Lee Hsien Loong Keynote Address at Shangri-La Dialogue 2015 

 

Thursday, May 28, 2015

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


Cheers for high-rise house buyers

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

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

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

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

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

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

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

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

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

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

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Regulate property management! Forum on Strata Management in Penang. IT is understandable for the Strata Management Act to attract much public interest. There are (or will soon be) more people living in high-rise strata ...



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Monday, May 25, 2015

Counterfeit medicines and drugs, a public health menance !

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

The drugs you are taking may be fake

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

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

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

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

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

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

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

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

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

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

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

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

Two types of fake

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Poor regulation

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

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

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

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

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

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

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

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

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



Bad effects

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

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

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

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

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

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

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

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

Patients should also be more careful of what they consume.

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

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

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

By Tan Shiow Chin The Star/Asia News Network

Related:

The counterfeit menace - Health