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Monday, 30 September 2019

China's October Revolution - a parade of strength and pride to show country’s ability to maintain peace

https://youtu.be/KL9UgfTjR8Q

China to hold its largest military parade, boasting new weapons and equipment at its anniversary


EVERYTHING is set and China is ready to display its military strength at the 70th anniversary celebrations.

Tomorrow, all eyes will be on this next super power when the military parade march along the Changan Road and pass the Tiananmen Square in the capital city of Beijing.

This will be the 15th time a national day military parade will take place since the formation of the People’s Republic of China in 1949.

The last time such an event was held was 10 years ago.

“This is no ordinary parade, it is a parade of strength, confidence and pride, ” a senior editor of a local daily said proudly.

But I confessed that I barely have any knowledge on defence matters and am quite clueless on weapons.

“A country has to be stable and strong in economy so that its people can live in peace and prosperity.

“And in order to achieve this, one has to be strong in defence, ” explained the editor I had a chat with during an assignment recently.

I can understand how he feels. After all, China has for a long time felt bullied and ripped-off by the powerful countries in the past.

“This is also an important moment to instil confidence in the people, telling them that they no longer have to worry about the nightmare they have suffered, ” he said.

The scale of this military parade would be the largest so far, said Cai Zhijun, deputy head of the office of the leading group for the event.

“There will be 59 formations and a military band. More than 160 aircraft and 580 pieces of equipment will be showcased at the parade, ” he told a press conference recently.

A senior People’s Liberation Army officer told Xinhua that a selection of new weapons would be featured at the parade.

“All the weapons and equipment are domestic and in active service with a high level of information technology application and better strike accuracy, said another army officer.

A total of 188 military attaches from 97 countries stationed in China have been invited to watch the parade.

Chinese National Defence Ministry spokesperson Wu Qian said at the country’s first military parade 70 years ago, they were short of aircraft.

“We only had 17 then. Premier Zhou (Enlai) said not enough aircraft, then we fly two times. And now, we have become strong and our aircraft no longer need to fly two rounds. We are relieved to tell the martyrs that such peace and prosperous era is what you all had wished to see, ” he said.

Wu also refuted allegations of China flexing its muscles at the parade.

“Over the last decades, China has made great contributions to the world. The stronger the country is, the greater constructive role we will play in keeping world peace, ” he added.

A total of 15,000 military personnel, aged between 20 and 70, will be taking part in the parade. They are the best of the best, shortlisted after rounds of screening.

I was lucky enough to visit an army camp and see the training session of the foot formations, comprising members from the guards of honour, soldiers, navy, air force servicewomen, reserve forces, peacekeepers and other divisions.

The male personnel have a height between 1.75m and 1.9m while the females are between 1.63m and 1.75m.

One of them is Guo Fengtong, 29. “It is a great honour to be able to participate in the event. For this, we trained extra hard with one goal and hope we are able to show our best at the national day parade, ” he said.

A member of the guards of honour division, Guo has pledged his service to the armed forces for 14 years. And his most unforgettable duty took place at the Beijing Olympics 2008.

“I was part of the flag detail to raise the Five-Star Red Flag at the opening ceremony but I had a blister and infection on my foot 12 days before the event.

“I was quite depressed then because I had trained for so long for the moment and worried that the whole process would be affected by me. Luckily I managed to recover and we completed our task perfectly, ” he added.

Ma Yanfei, 23, said she has been dreaming of becoming a guard of honour after seeing them on duty.

“They appeared very smart, strong and brave to me. So, when I was recruited into the armed forces seven years ago, I applied to join the division.

“I feel proud because we carry the image of the force as well as the country, ” she added.

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Military parade seeks to show country’s ability to maintain peace

Chinese soldiers practice in Beijing on September 25, ahead of a military parade on October 1 to mark the 70th anniversary of the founding of the People's Republic of China. Photo: IC

The upcoming October 1 National Day parade, in which China's armed forces will join with advanced military equipment and missiles, has triple meanings.

First, it celebrates the 70th anniversary of the founding of the People's Republic of China. Since 1949, the military parade is held on a smaller scale every five years and as a grand spectacle every 10 years. Thus, the parade this year is expected to be huge.

Second, China has vowed to complete military reform and has armed forces capable of informationized warfare by 2020. The outcome of China's military reform would likely show up at the momentous event and will find expression on Changan Avenue.

Third, after seven decades of unremitting efforts, the equipment of the Chinese People's Liberation Army (PLA) has been greatly improved. The parade will show China's nationalized equipment system and combat capability - the PLA's general combat capability has developed rapidly. By the time China accomplishes its military reform in 2020, the PLA's combat capability would have taken a huge leap. Thus, the military parade will also be a show of China's developing military equipment.

Many people are eager to know if new weaponry and equipment will be unveiled at the parade. There is more curiosity about the types of missiles that will be brought out of the PLA arsenal. People will also pay attention to the real combat capability of the PLA Rocket Force and the PLA Strategic Support Force. Because there have been systematic adjustments, people will focus on the foot formations of the marching columns.

There is no doubt that China will show its nuclear capability to the world at the event. But such a show is not meant to target any country. China's nuclear weapons will not pose a direct threat to other countries. It has promised not to be the first to use nuclear weapons at any time or under any circumstances.

Thus, no matter how advanced China's nuclear weapons are, they will only be used as strategic deterrents. But if other countries dare to use nuclear weapons against China, Beijing will be able to launch a nuclear counterattack. The US, Russia and China are all developing the nuclear triad structure - a three-pronged military force structure that consists of land-launched nuclear missiles, nuclear-missile-armed submarines and strategic aircraft with nuclear bombs and missiles. China is catching up with the US and Russia in this respect and this has become an important basis of the country's national security.

China has been committed to a "peaceful rise." This shows that the Chinese people want to actualize national rejuvenation in a peaceful way and realize it in the 21st century. Instead of being a threat to any country or region, China's rise will contribute to global peace and stability. For example, China has provided most troops on UN peacekeeping missions, and the country is also a large contributor to the UN peacekeeping budget. China has played a leading role in maintaining regional peace and stability. Its strong military power is also an important symbol of world peace.

China's military parade will not be a muscle-flexing show against any country or region, but will aim to show its strong ability to maintain peace and stability in the world. The more military strength China has, the stronger the ability to maintain world peace. As the world is facing challenges of rising unilateralism, global and regional hegemony, it is China's obligation to safeguard world peace and stability.

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China's military strength guarantees world peace, stability

Military muscle is not a bad thing. The key is how to use such muscle. After seven decades, it is time for China to show some muscle to the world. China's strength is a reliable guarantee of national unity and world peace. It is also a solid foundation to act against any force that tries to sabotage regional peace and development. China has always pursued a defensive national defense policy, and the 70 years of peaceful rise is China's greatest contribution to the development of mankind.

Ceremony to commemorate Martyrs' Day at Tian'anmen Square党和国家领导人向人民英雄纪念碑敬献花篮 30-09-2919


https://youtu.be/I70BPuHQir8

China holds Martyrs' Day event in memory of fallen heroes -

https://youtu.be/6GlPbISF8PA

The PLA Navy: Developing rapidly on its 70th anniversary

https://youtu.be/LLorHXJ1Sks

China's Grand military parade celebrationn 2015

https://youtu.be/JzrpCC7XmyE


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Friday, 27 September 2019

Daxing International Airport opens in Beijing, Awards to celebrate PRC 70th anniversary

https://youtu.be/0Q85mHJqpuE
Beijing's new mega airport opens today. Daxing International Airport is the second airport in the capital and will likely ease congestion at Beijing Capital International Airport

Building China’s $12BN Mega Airport

https://youtu.be/-aWJ5p3X-Yo

 No stranger to record-breaking projects, China has now completed one of the largest airports ever conceived - the USD $12BN Daxing International in Beijing.

https://youtu.be/zSCFhgmLRLU

China opens new Beijing airport ahead of 70th PRC's anniversary


In this image made from CCTV video taken Sept. 17, 2019, an aerial view is seen of the new Beijing Daxing International Airport. The Chinese capital, Beijing, has opened a second international airport with a terminal billed as the world’s biggest. (CCTV via AP)
BEIJING (AP) — President Xi Jinping on Wednesday inaugurated a second international airport for the Chinese capital with the world's biggest terminal ahead of celebrations of the founding of the People's Republic of China (PRC).

Beijing Daxing International Airport is designed to handle 72 million passengers a year. Located on the capital's south side, it was built in less than five years at a cost of 120 billion yuan ($17 billion).

The airline's first commercial flight, a China Southern Airlines plane bound for the southern province of Guangdong, took off Wednesday afternoon, state broadcaster CCTV reported. Six more flights took off later for Shanghai and other destinations.

The main Beijing airport, located in the city's northeast, is the world's second-busiest after Hartsfield-Jackson Atlanta International Airport and is nearing capacity.

Daxing, designed by the late Iraqi-British architect Zaha Hadid, includes a terminal billed as the world's biggest at 1 million square meters (11 million square feet).

Despite that, its builders say travelers will need to walk no more than 600 meters (2,000 feet) to reach any boarding gate.

The vast, star-shaped airport is about 45 kilometers (30 miles) south of downtown Beijing. It has four runways, with plans for as many as three more.

Carriers including British Airways and state-owned China Southern, the country's biggest airline by passengers, plan to move to Daxing from Beijing Capital International Airport.

The capital has a third airport, Nanyuan, for domestic flights, but the government says that will close once Daxing is in operation.



Live: National awards ceremony to celebrate PRC 70th anniversary国家勋章和国家荣誉称号颁授仪式

https://youtu.be/SWUn03X7Mwc

Chinese President Xi Jinping signed a presidential decree on September 17 to award 42 Chinese and foreign individuals with national medals and honorary titles. The awards come as the People's Republic of China prepares to celebrate its 70th founding anniversary on October 1

Forty-two people were awarded national medals and honorary titles by Chinese President Xi Jinping at the Great Hall of the People in Beijing on September 29.

https://youtu.be/vS3_4gAAWtk

Thai princess speaks on behalf of China's Medal of Friendship recipients

https://youtu.be/Du6eHQOQQf0

Thursday, 26 September 2019

Hong Kong's youngters barking up at the wrong tree: preaching the West's cheats, divide-and-conquer, farce hearing !

https://youtu.be/n9Modr_sVr0

Hong Kong's pro-democracy activist Joshua Wong testifies at a hearing of the US Congressional Executive Commission on China entitled "Hong Kong's Summer of Discontent and U.S. Policy."


https://youtu.be/ufVputv5ig4

https://youtu.be/fcwY120RQ2o  

Hong Kong: Police crackdown on protest activist Joshua Wong
 
https://youtu.be/kDQj39B-jGM

Farce hearing shows US hypocrisy


Radical Hong Kong oppositionists Joshua Wong Chi-fung and Denise Ho Wan-see on Tuesday were invited to testify at a US congressional hearing about the Hong Kong issues. Wong and Ho described Hong Kong as a city which has lost freedom under the suppression of the Communist Party of China. The hearing was full of biased information and lies.

The hearing itself humiliated US congressional hearing system. The US Congress invited only Hong Kong's radical opposition figures but ignored the opinion of Hongkongers who support both the Hong Kong Special Administrative Region (SAR) government's lawful measures and the Hong Kong police's efforts to counter riots in accordance with laws. The US Congress didn't even pretend to make the hearing look more credible.

US senators who proposed the so-called Hong Kong Human Rights and Democracy Act of 2019 have never thought about getting comprehensive, objective and real information about Hong Kong. The hearing they held didn't aim at verifying the situation in Hong Kong, but intended to use biased information to back their bill that hurts Hongkongers' interests.

The SAR government has officially withdrawn the extradition bill, but the opposition has extended their demands to so-called real universal suffrage. A few rioters continued to wreck havoc in Hong Kong. In such a context, the US Congress not only sided with the opposition in Hong Kong but also offered support to the extreme rioters.

Although Hong Kong society is split in public opinion, only a minority of Hongkongers would support the passing of the act. The act requires an annual assessment of the special status of Hong Kong as a separate customs territory, which will severely threaten the stability of the city's financial environment, and thus hurt the interests of the majority of Hongkongers. This has nothing to do with the political appeals of Hong Kong citizens.

Neither Wong nor Ho can represent the majority of Hong Kong people. Oppositionists like them collude with a handful of US senators and forge a fake public opinion of Hongkongers. Such a fraud in the US political system will only stain the US Congress rather than bring it glory.

The farce of the congressional hearing showed that the Hong Kong act proposed by the US Congress cannot reflect the reality of the Chinese city. It is a perfect match between the US current strategy against China and the interests of the extreme opposition of Hong Kong. It aims at offering a new tool to contain China.

Some Hong Kong extremists are determined to take sides with the US and will not hesitate to betray their own city's interests.

The Hong Kong act could pass as some US political elites are promoting it, and some extreme Hong Kong opposition are collaborating from within. But the situation will not necessarily develop as the two forces wish. The future of Hong Kong is not in the hands of Washington, but in the hands of all the Chinese people, including Hongkongers.

Hong Kong's separate customs territory status is guaranteed by the Basic Law. The US move cannot represent the entire world. The impetus of the city's constant prosperity comes from within and from its close ties with the motherland.

The US economic crackdown has not shaken China, nor will it determine the future of Hong Kong. Anyone who misunderstands this misunderstands the era and the world.

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Tuesday, 24 September 2019

Tech Titans of China


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How China's Tech Sector is challenging the world by innovating faster, working harder, and going global

The rise of China's tech companies and intense competition from the sector is just beginning. This will present an ongoing management and strategy challenge for companies for many years to come. Tech Titans of China is the go-to-guide for companies (and those interested in competition from China) seeking to understand China's grand tech ambitions, who the players are and what their strategy is. Fannin, an expert on China, is an internationally-recognized journalist, author and speaker. She hosts 12 live events annually for business leaders, venture capitalists, start-up founders, and others impacted by or interested in cashing in on the Chinese tech industry. In this illuminating book, she provides readers with the ammunition they need to prepare and compete.

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Home Is Where The Heart Is

https://youtu.be/a_B80AIQegE

Harking after a home: Officials have acknowledged that the lack of affordable housing is one of the issues that sparked the unrest in Hong Kong, which has been going on for months. — AFP
Owning a house is the standard ambition of any individual, however, getting there is increasingly becoming not only a local, but global struggle.

THERE’S a lesson to be learnt from the protests in Hong Kong – politics is about selling hope. So if the young people living in a depressing environment feel they have no future, then the alarm bells should ring loudly.

In the case of Hong Kong, the leaders – mostly technocrats and government officials – didn’t see it coming, or maybe they were just indifferent.

Many young people in Hong Kong feel they stand no chance of becoming a homeowner in their lifetime, and officials have acknow-ledged that the issue is one of the causes that sparked off the unrest.

The controversial Extradition Bill, which allows a Hong Kong resident to be sent to mainland China to face trial, was merely a catalyst. Those protesters couldn’t all possibly believe they’d fall on the wrong side of the law and face the consequences, could they?

Last week, former Hong Kong chief executive Leong Chun-ying was in Kuala Lumpur for appointments with businessmen, opinion leaders and officials, to update them on developments on the island.

I was among the lucky Malaysians picked to hear his thoughts and views on Hong Kong, while he, too, listened to our concerns during the two-hour closed-door meeting.

My co-host and meeting organiser, Datuk Seri Azman Ujang, and I both feel that of all the problems faced by any country in nation- building, none deserves greater priority than housing the people.

What expectation could be more basic than having a roof over our heads, and with it being a decent and affordable one at that? And when we talk about affordable, it should be truly attainable by the low-income people who form the bulk of the population in most countries.

Azman, the Bernama chairman, rightly outlined the consequences of the failure that stems from a lack of will in resolving the housing problem of the masses. And as he said, this could easily lead to people pouring into the streets protesting issues not even directly related to housing.

It’s a fact that many poor Hong Kong people live in a room less than 75sq ft, and millions live in deplorable conditions.

More recently, “nano” flats – tiny apartments less than 200sq ft – have fast become the norm in overcrowded Hong Kong.

According to a South China Morning Post report, the cost began at HK$2.85mil (RM1.52mil) for an apartment no bigger than an average Hong Kong car park space, but the lack of interest forced a rethink by the developer.

But what’s mind-boggling is that while there are plenty of poor people in Hong Kong, or many who feel poor, Hong Kong’s fiscal reserves stood at HK$1.16tril (RM620bil) as at the end of January.

In a report, Financial Services and the Treasury Bureau said there was a surplus of HK$86.8bil (RM46.2bil), bringing the cumulative year-to-date surplus up to HK$59bil (RM31bil).

All this wealth belongs to Hong Kong and not mainland China, so a lot can be done with that money for a population of just seven million people, especially low-cost housing!

In comparison, Malaysia’s official reserve assets amounted to US$102.03bil (RM425bil) as at end November 2018, while other foreign currency assets stood at US$51.6mil (RM215mil) for the same period, Bank Negara said. Malaysia has a population of 32 million.

It can’t be denied that Singapore has done well in housing its population, with over 90% of the seven million population reportedly living in homes of their own, and the home-ownership ratio is said to be the world’s highest.

The Singapore Housing Development Board (HDB) deserves global recognition for its feat in solving the housing problem of the people, especially the poor.

The middle-class and poor must be able to have a roof over their heads. That’s an essential human need. No country can have peace and stability if the poor are not able to own a home in their lifetime.

A prosperous and satisfied middle-class will lead to political stability. A huge middle class will also mean greater purchasing power, and this will lead to a better economy with spillover effects for everyone.

When there are angry citizens protesting everything from the escalating food prices to housing, then even the elite (including politicians and businessmen) will not feel safe. In South Africa, the rich live in houses with high walls and electric fences to protect themselves, but that’s not the best way to live. It’s living dangerously.

Malaysian politicians who still wield the race and religion card will realise that at some point, these will be “dead issues”.

With well-documented shrinking numbers, the Chinese and Indian population will no longer be the proverbial bogeymen in the future. Instead, it is class stratification that will be a matter of concern.

Last year, it was reported that the gap in income between the rich, middle class and poor in Malaysia had widened since 2008, according to a study by Khazanah Research Institute (KRI).

In its “The State of Households 2018” report, the research outfit of sovereign wealth fund Khazanah Nasional Bhd noted that the gap in the real average income between the top 20% households (T20) and the middle 40% (M40) and bottom 40% (B40) households had almost doubled, compared to two decades ago.

The report, titled Different Realities, pointed out that while previous economic crises, in 1987 and the 1997/98 Asian Financial Crisis, saw a reduction in the income gap between the T20 and B40/M40, post-2008/09 Global Financial Crisis (GFC), those disparities had not reduced.

But the Gini coefficient, which measures income inequality in the country, had declined from 0.513 in 1970 to 0.399 in 2016, denoting improvement in income inequality in Malaysia over the past 46 years.

Explaining the phenomenon, Allen Ng, who is the lead author of the KRI report, said income of the T20 households had continued to grow, albeit at a slower pace than that of the M40 and B40 since 2010.

“However, because they (the T20) started at a higher base, the income gap between the T20 and M40/B40 had continued to grow despite the fact that the relative (income growth) is actually narrowing post-GFC, ” Ng explained at a press conference after the launch of the report yesterday.

In his bestselling book The Colour Of Inequality: Ethnicity, Class, Income And Wealth In Malaysia (2014), economist Dr Muhammed Abdul Khalid wrote that “the future does not look rosy for Malaysia; the current policies are encouraging wealth disparity between rich and poor, and between ethnicities.

“Unless bold and drastic actions are taken urgently, a harmonious future for Malaysia is uncertain. There must be an urgency to give every Malaysian economic security, a better and sustainable future.”

Muhammed, the managing director of the research and consulting firm DM Analytics Malaysia, said last year that contrary to popular belief, most Chinese (70%) are wage-earners, as are most Malays (72%). In fact, the poverty gap between races has dropped compared to 40 years ago, though the disparity remains.

And what about Malaysia? We have a disastrous, if not scandalous, record, particularly the pathetic business activities, dealings and performance of the 1Malaysia People’s Housing Programme’s (PR1MA) set up to build affordable homes.

More than RM8bil has gone up in smoke because PR1MA’s management failed to meet its targets, despite all the assistance and facilities accorded to their projects by the previous federal government and most state governments.

PR1MA reportedly built only 11,000 homes, compared with its target of half a million residential units to be delivered by the end of 2018. That’s less than 5% of the original plan.

PR1MA Malaysia was set up to plan, develop, construct and maintain high-quality housing with lifestyle concepts for middle-income households in key urban centres. Its homes are priced between RM100,000 and RM400,000.

PR1MA is open to all Malaysians with a monthly household income of RM2,500 to RM15,000.

A total of 1.42 million people registered for PR1MA, a promise of one million homes by 2020, but only 16,682 units, or 1.6%, of the target, were completed between 2013 and 2018, costing the government billions in public funds.

Poor management, exorbitant land acquisition costs and unsuitable sites have turned the people’s housing project into a major financial flop. PR1MA’s failure, which could cost the new government billions, is apparently already saddled with ballooning debts, rendering the loss-making company untenable.

It’s the responsibility of the government to build affordable homes – not the private developers. Private developers, especially those who helm public listed companies, have profits and dividends to answer for to shareholders. They are in the business of making money, and with the expensive land bank they have acquired, they need to build expensive homes, too.

Even if there are requirements with the obligated mixed homes for social housing needs, it still won’t resolve the problems.

Our politicians shouldn’t pass their responsibilities to them. They just need to have qualified and competent professionals with integrity to run a set-up like HDB. Obviously, the people who ran PR1MA didn’t do their jobs. We can help Malaysians own homes, or at least rent them at affordable rates, if we’re truly committed. The question is, are we?

As for Hong Kong, there is another lesson the young protesters need to learn: a full democracy doesn’t guarantee you a home and a decent job. Just ask the homeless in the United States and Britain.

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Tech Titans of China


https://youtu.be/MI4Gwjn7jfc

https://youtu.be/D7Z86KWVSOg

How China's Tech Sector is challenging the world by innovating faster, working harder, and going global

The rise of China's tech companies and intense competition from the sector is just beginning. This will present an ongoing management and strategy challenge for companies for many years to come. Tech Titans of China is the go-to-guide for companies (and those interested in competition from China) seeking to understand China's grand tech ambitions, who the players are and what their strategy is. Fannin, an expert on China, is an internationally-recognized journalist, author and speaker. She hosts 12 live events annually for business leaders, venture capitalists, start-up founders, and others impacted by or interested in cashing in on the Chinese tech industry. In this illuminating book, she provides readers with the ammunition they need to prepare and compete.

Featuring detailed profiles of the Chinese tech companies making waves, the tech sectors that matter most in China's grab for super power status, and predictions for China's tech dominance in just 10 years.

Read more: 


Related posts:


https://youtu.be/zgTAWbH7fNY https://youtu.be/bxGdjMLrDho https://youtu.be/73bgozKmDUk https://youtu.be/caEjuzZSX-A   Snap .

THE NEW YORK TIMES , USA TODAY , AND WALL STREET JOURNAL BESTSELLER Dr. Kai-Fu Lee—one of the world’s most respected expert.




Home Is Where The Heart Is

https://youtu.be/a_B80AIQegE

Harking after a home: Officials have acknowledged that the lack of affordable housing is one of the issues that sparked the unrest in Hong Kong, which has been going on for months. — AFP
Owning a house is the standard ambition of any individual, however, getting there is increasingly becoming not only a local, but global struggle.

THERE’S a lesson to be learnt from the protests in Hong Kong – politics is about selling hope. So if the young people living in a depressing environment feel they have no future, then the alarm bells should ring loudly.

In the case of Hong Kong, the leaders – mostly technocrats and government officials – didn’t see it coming, or maybe they were just indifferent.

Many young people in Hong Kong feel they stand no chance of becoming a homeowner in their lifetime, and officials have acknow-ledged that the issue is one of the causes that sparked off the unrest.

The controversial Extradition Bill, which allows a Hong Kong resident to be sent to mainland China to face trial, was merely a catalyst. Those protesters couldn’t all possibly believe they’d fall on the wrong side of the law and face the consequences, could they?

Last week, former Hong Kong chief executive Leong Chun-ying was in Kuala Lumpur for appointments with businessmen, opinion leaders and officials, to update them on developments on the island.

I was among the lucky Malaysians picked to hear his thoughts and views on Hong Kong, while he, too, listened to our concerns during the two-hour closed-door meeting.

My co-host and meeting organiser, Datuk Seri Azman Ujang, and I both feel that of all the problems faced by any country in nation- building, none deserves greater priority than housing the people.

What expectation could be more basic than having a roof over our heads, and with it being a decent and affordable one at that? And when we talk about affordable, it should be truly attainable by the low-income people who form the bulk of the population in most countries.

Azman, the Bernama chairman, rightly outlined the consequences of the failure that stems from a lack of will in resolving the housing problem of the masses. And as he said, this could easily lead to people pouring into the streets protesting issues not even directly related to housing.

It’s a fact that many poor Hong Kong people live in a room less than 75sq ft, and millions live in deplorable conditions.

More recently, “nano” flats – tiny apartments less than 200sq ft – have fast become the norm in overcrowded Hong Kong.

According to a South China Morning Post report, the cost began at HK$2.85mil (RM1.52mil) for an apartment no bigger than an average Hong Kong car park space, but the lack of interest forced a rethink by the developer.

But what’s mind-boggling is that while there are plenty of poor people in Hong Kong, or many who feel poor, Hong Kong’s fiscal reserves stood at HK$1.16tril (RM620bil) as at the end of January.

In a report, Financial Services and the Treasury Bureau said there was a surplus of HK$86.8bil (RM46.2bil), bringing the cumulative year-to-date surplus up to HK$59bil (RM31bil).

All this wealth belongs to Hong Kong and not mainland China, so a lot can be done with that money for a population of just seven million people, especially low-cost housing!

In comparison, Malaysia’s official reserve assets amounted to US$102.03bil (RM425bil) as at end November 2018, while other foreign currency assets stood at US$51.6mil (RM215mil) for the same period, Bank Negara said. Malaysia has a population of 32 million.

It can’t be denied that Singapore has done well in housing its population, with over 90% of the seven million population reportedly living in homes of their own, and the home-ownership ratio is said to be the world’s highest.

The Singapore Housing Development Board (HDB) deserves global recognition for its feat in solving the housing problem of the people, especially the poor.

The middle-class and poor must be able to have a roof over their heads. That’s an essential human need. No country can have peace and stability if the poor are not able to own a home in their lifetime.

A prosperous and satisfied middle-class will lead to political stability. A huge middle class will also mean greater purchasing power, and this will lead to a better economy with spillover effects for everyone.

When there are angry citizens protesting everything from the escalating food prices to housing, then even the elite (including politicians and businessmen) will not feel safe. In South Africa, the rich live in houses with high walls and electric fences to protect themselves, but that’s not the best way to live. It’s living dangerously.

Malaysian politicians who still wield the race and religion card will realise that at some point, these will be “dead issues”.

With well-documented shrinking numbers, the Chinese and Indian population will no longer be the proverbial bogeymen in the future. Instead, it is class stratification that will be a matter of concern.

Last year, it was reported that the gap in income between the rich, middle class and poor in Malaysia had widened since 2008, according to a study by Khazanah Research Institute (KRI).

In its “The State of Households 2018” report, the research outfit of sovereign wealth fund Khazanah Nasional Bhd noted that the gap in the real average income between the top 20% households (T20) and the middle 40% (M40) and bottom 40% (B40) households had almost doubled, compared to two decades ago.

The report, titled Different Realities, pointed out that while previous economic crises, in 1987 and the 1997/98 Asian Financial Crisis, saw a reduction in the income gap between the T20 and B40/M40, post-2008/09 Global Financial Crisis (GFC), those disparities had not reduced.

But the Gini coefficient, which measures income inequality in the country, had declined from 0.513 in 1970 to 0.399 in 2016, denoting improvement in income inequality in Malaysia over the past 46 years.

Explaining the phenomenon, Allen Ng, who is the lead author of the KRI report, said income of the T20 households had continued to grow, albeit at a slower pace than that of the M40 and B40 since 2010.

“However, because they (the T20) started at a higher base, the income gap between the T20 and M40/B40 had continued to grow despite the fact that the relative (income growth) is actually narrowing post-GFC, ” Ng explained at a press conference after the launch of the report yesterday.

In his bestselling book The Colour Of Inequality: Ethnicity, Class, Income And Wealth In Malaysia (2014), economist Dr Muhammed Abdul Khalid wrote that “the future does not look rosy for Malaysia; the current policies are encouraging wealth disparity between rich and poor, and between ethnicities.

“Unless bold and drastic actions are taken urgently, a harmonious future for Malaysia is uncertain. There must be an urgency to give every Malaysian economic security, a better and sustainable future.”

Muhammed, the managing director of the research and consulting firm DM Analytics Malaysia, said last year that contrary to popular belief, most Chinese (70%) are wage-earners, as are most Malays (72%). In fact, the poverty gap between races has dropped compared to 40 years ago, though the disparity remains.

And what about Malaysia? We have a disastrous, if not scandalous, record, particularly the pathetic business activities, dealings and performance of the 1Malaysia People’s Housing Programme’s (PR1MA) set up to build affordable homes.

More than RM8bil has gone up in smoke because PR1MA’s management failed to meet its targets, despite all the assistance and facilities accorded to their projects by the previous federal government and most state governments.

PR1MA reportedly built only 11,000 homes, compared with its target of half a million residential units to be delivered by the end of 2018. That’s less than 5% of the original plan.

PR1MA Malaysia was set up to plan, develop, construct and maintain high-quality housing with lifestyle concepts for middle-income households in key urban centres. Its homes are priced between RM100,000 and RM400,000.

PR1MA is open to all Malaysians with a monthly household income of RM2,500 to RM15,000.

A total of 1.42 million people registered for PR1MA, a promise of one million homes by 2020, but only 16,682 units, or 1.6%, of the target, were completed between 2013 and 2018, costing the government billions in public funds.

Poor management, exorbitant land acquisition costs and unsuitable sites have turned the people’s housing project into a major financial flop. PR1MA’s failure, which could cost the new government billions, is apparently already saddled with ballooning debts, rendering the loss-making company untenable.

It’s the responsibility of the government to build affordable homes – not the private developers. Private developers, especially those who helm public listed companies, have profits and dividends to answer for to shareholders. They are in the business of making money, and with the expensive land bank they have acquired, they need to build expensive homes, too.

Even if there are requirements with the obligated mixed homes for social housing needs, it still won’t resolve the problems.

Our politicians shouldn’t pass their responsibilities to them. They just need to have qualified and competent professionals with integrity to run a set-up like HDB. Obviously, the people who ran PR1MA didn’t do their jobs. We can help Malaysians own homes, or at least rent them at affordable rates, if we’re truly committed. The question is, are we?

As for Hong Kong, there is another lesson the young protesters need to learn: a full democracy doesn’t guarantee you a home and a decent job. Just ask the homeless in the United States and Britain.

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China's central bank speeds up digital currency drive

 Private-sector players likely to participate in project

Photo: VCG

With internet technologies advancing and cryptocurrencies flourishing amid a broad digital transformation, individual countries are starting to issue legal tender in digital form, and the People's Bank of China (PBC), the country's central bank, is also accelerating its pace in this area.

As of Sunday, the PBC had applied for 74 patents involved with digital currencies to the National Intellectual Property Administration, according to a report by the Economic Information Daily on Monday.

The PBC said it will speed up the development of legal digital currency on Friday.

Wang Xin, director of the PBC Research Bureau, said in July that the authority is organizing market-oriented institutions to jointly research and develop a central bank digital currency and the program has been approved by the State Council, China's Cabinet.

"China is beefing up efforts in digital currency innovation, a trend driven by emerging technologies that is spreading worldwide," said Huang Zhen, a professor at the Central University of Finance and Economics.

Rather than letting cryptocurrencies challenge the position of sovereign currencies, it is wiser for countries to roll out their own digital currencies, Huang told the Global Times on Monday.

Chinese authorities ordered a ban on initial coin offerings in 2017 and stopped direct bitcoin-yuan trading as the rapidly expanding market spawned concerns over financial risks.

The PBC, one of the earliest central banks in the world to start the process of digital currency innovation, launched its program in 2014 during the tenure of former governor Zhou Xiaochuan. In 2017, the PBC established a research institution for the digital currency.

"China is among the leading countries in terms of its research into a government-backed currency," said Huang.

Favorable conditions

The basic conditions favorable for China's implementation of a digital currency include comprehensive and fast networks, broad digitalization in the financial sector, and advanced financial technologies - particularly blockchain, a digital, public ledger that records online transactions, according to Huang.

In recent years, Chinese internet companies have made huge achievements in the mobile payment and e-commerce sectors, helping create a digital economy of more than 30 trillion yuan ($4.36 trillion), according to media reports.

In June, US social media giant Facebook released an official white paper for its cryptocurrency project Libra, a blockchain-powered stablecoin expected to arrive in 2020.

The move stepped up the global race for digital currencies, with China's central bank paying close attention.

The central bank is closely working with market participants on creating a central bank digital currency, PBC official Wang said.

"China's private market players have accumulated some experience in the digital currency sector. Their participation in the government's work will effectively help promote the project," Cao Yin, an expert in the blockchain sector, told the Global Times on Monday.

It is likely that the sovereign digital currency will be issued within two or three years at the soonest, although the authority tends to take a prudent attitude, Cao said.

Once it is broadly implemented, the new currency will have a big impact on Alibaba's Alipay and Tencent's WeChat Pay, the two dominant mobile digital payment tools in China, as the PBC's digital currency is featured by decentralization, unlike the former two.

Challenges ahead

There are still some bumps on the road to promoting the digital currency.

"For this new kind of currency, its nature actually poses challenges to existing policies in such aspects as foreign exchange control, so it takes time to balance benefits with potential risks," said Cao.

A flexible and open mechanism is needed by the PBC to attract more talent, he added.

Digital currencies can help strengthen regulation as transaction data can be tracked and analyzed, including illegal money laundering, according to Huang. But laws and rules should be formulated in a timely fashion to protect individual information. "Safety is the biggest issue," he added.

"Use of the digital currency to better serve the real economy also requires policy guidance," said Huang. Newspaper headline: PBC accelerates digital currency drive.

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