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Showing posts with label SMEs. Show all posts
Showing posts with label SMEs. Show all posts

Sunday, March 27, 2022

Talent, salary & wage growth and Koi’s law

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US' dirty records of using, developing bio, chemical weapons. Graphic: Zhao Jun/GT

Besides Fort Detrick at home, US military has 336 biolabs in 30 countries including Ukraine

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The US has 336 labs in 30 countries under its control, including 26 in Ukraine alone. It should give a full account of its biological military activities at home and abroad and subject itself to multilateral verification.
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9:17 PM · Mar 8, 2022Twitter Web App https://twitter.com/i/status/1501185437901082629






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Personnel at work in the biosafety level-4 laboratory at the US Army Medical Research Institute of Infectious Diseases at Fort Detrick in 2002. [Photo/Agencies]

An envoy called on the international community to assess documents on US military biological activities, which were published by the Russian government, to alleviate the “great concern” of the international community.

“The Covid-19 pandemic has reminded us that as a crucial matter of international peace and security, biological security has no borders and involves the shared interests of humanity,” Dai Bing, China’s deputy permanent representative to the United Nations, said during the UN Security Council Arria Formula Meeting on biological security, hosted by Russia.

“Thus, any information on the biological military activity should trigger heightened concern and attention of the international community to avoid irreparable harm,” Dai said.

He stressed that “China welcomes the international community to assess the discovered documents within appropriate frameworks including the BWC (Biological Weapons Convention) and the UN, and hear the clarifications from the relevant country in a fair and impartial manner”.

He said the relevant country should “take a responsible approach and offer timely and comprehensive clarifications on its biological activities to remove the doubts of the international community”.

“Further enhancement of the transparency on its global biological activities is also needed,” he added.

China has suffered from biological weapons during World War II, Dai said, and hence “consistently stands for the complete prohibition and thorough destruction of all weapons of mass destruction, including biological and chemical weapons”.

Dai said China “firmly opposes the development, stockpiling or use of biological and chemical weapons by any country under any circumstances and urges countries that have not done so to destroy their chemical weapons stockpiles as soon as possible”.

“All States parties should comply with the objectives and principles of the BWC in good faith,” he said.

Sunday will mark the 50th anniversary of the opening for signature of the BWC, he noted.

“The current dynamics on biological security highlight the urgent need to relaunch negotiations on a verification protocol under the BWC and establish a professional, impartial and independent multilateral verification mechanism based on that,” Dai said. 

 Dai said such a mechanism is a necessary but "long-absent instrument to eliminate potential biological weapons threats and enhance the authority and effectiveness of the BWC, and its establishment must not be thwarted by any certain member state".— China Daily/ANN

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US shuns UN meeting on biological security to 'cover up guilt conscience'

 

Russia has called for a UN Security Council meeting to discuss purported US-backed biological weapons programs in Ukraine.Photo:VCG

 

When Russia, China and other countries expressed their concerns over US biological activities in countries including Ukraine at a UN Security Council meeting on Wednesday, the US did not show up, which in some Chinese experts' eyes, was out of the US' "guilty conscience" over the issue.

At the UN Security Council Arria Formula Meeting on Biological Security on Wednesday, Igor Kirillov, chief of the Radiation, Chemical and Biological Defense Forces of the Russian Armed Forces, said Washington is creating biological laboratories in different countries and connecting them to a unified system. In territories bordering Russia and China alone, about 60 facilities have been modernized since 2005 with funding from the US military, he said. Kirillov noted that the US has spent more than $5 billion on military biological programs since 2005.

The Ukrainian network of laboratories is designed to conduct research and monitor the biological situation consisting of 30 facilities in 14 populated locations, Kirillov said, noting especially valuable materials from Ukrainian biological laboratories were exported to the US in early February, and the rest should be destroyed, TASS reported.

Dai Bing, China's deputy permanent representative to the UN, said at the meeting that China firmly opposes the development, stockpiling or use of biological and chemical weapons by any country under any circumstances, and the Russian Federation has published a number of documents related to the biological military activities of the US, which has caused great concern from the international community.

China welcomes the international community to assess the discovered documents within appropriate frameworks including the Biological Weapons Convention (BWC) and the UN, and hear the clarifications from the relevant country in a fair and impartial manner. The relevant country should take a responsible approach and offer timely and comprehensive clarifications on its biological activities to remove the doubts of the international community, Dai said.

According to the TASS report, diplomats from Brazil, Venezuela, Belarus and other countries also spoke at the meeting, but US and UK representatives did not show up.

"This is evidence of their real attitude to this problem--the fact that they have something to hide and do not want to answer the uncomfortable questions posed today," Russian First Deputy Permanent Representative to the United Nations Dmitry Polyansky said, TASS reported.

Song Zhongping, a Chinese military expert and TV commentator, told the Global Times that the US did not attend the meeting out of "guilty conscience," and the US did not want to make public its biological activities but covered its hidden agenda with "commercial secrets."

The US kept setting up biological laboratories around rival countries with the goal of developing targeted viral weapons against those countries, Song said.

The US insists on developing weapons of mass destruction to seek hegemony, which is a gross violation of the BWC and an assault on human civilization, he said.

Wang Yiwei, director of the institute of international affairs at the Renmin University of China, told the Global Times that the US attacks voices from Russia as disinformation and attempts to use its resources to shut off Russia's voices, and amid the Russia-Ukraine conflict, the US believes that Russia was trying to use the biological lab issue to rewrite the story of its military operation in Ukraine.

No matter it's for stirring up a color revolution or conducting biological activities in Ukraine, the US' purpose is to create confrontations and division to slow down its decline, Wang said.

Facing growing concerns, the responses from Washington have made the international community more concerned. Undersecretary of State for Political Affairs Victoria Nuland said the US has "biological research facilities" in Ukraine. But the US Department of State said Russia's claims of US bio-weapons activities in Ukraine were "outright lies."

Kremlin spokesperson Dmitry Peskov said on Wednesday that the US should share comprehensive information on bio-labs in Ukraine.

During this week's Preparatory Committee for the Ninth Review Conference of the BWC, the US cited "revisionist history" to describe the international community's criticism over its opposition to the establishment of a verification mechanism of the BWC, Zhao Lijian, Chinese Foreign Ministry spokesperson, said at Thursday's media briefing, noting that the US' remarks are "shocking."

He said what the US wants is to arbitrarily accuse others of violating the convention and demand verification with "the presumption of guilt", while refusing to accept any supervision and verification of its own compliance.

This lies at the heart of the US' sole opposition to a verification mechanism, Zhao said. 

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US’ exclusive opposition to the biological weapons verification regime an egregious act of seeking global hegemony

Military personnel stand guard outside the USAMRIID at Fort Detrick on September 26, 2002. Photo: AFP

Editor's Note:

The US has ignited a war between Russia and Ukraine for its own selfish interests, the flames of war have also unveiled a darker side of the US' secret biological experimentation activities around the world.. Although the US government has repeatedly claimed that it is not developing biological weapons, numerous facts show that this claim is hardly convincing.

Biological weapons have always been an extremely sensitive topic in the international military and political arena. However, the US first pushed for the conclusion of the Biological Weapons Convention (BWC) and then exclusively opposed the establishment of a multilateral verification mechanism for the convention for more than 20 years. Observers and experts reached by the Global Times noted that hidden behind this flip-flopping stance is the US' elaborate calculations of international and domestic realities, which is another nefarious attempt to seek global hegemony under its narrow view of security.

US says 'No' to BWC verification

As the world frowns at the three recognized weapons of mass destruction - nuclear weapons, chemical weapons and biological weapons, the US is happy to have so many of them.

It is well known that the US possesses nuclear weapons with the capacity to destroy the world multiple times. In the case of chemical weapons, "The US is the sole possessor state party of chemical weapons," said Chinese Foreign Ministry spokesman Zhao Lijian at a regular press conference on March 10. At the same time, the US is the only country that has so far opposed the establishment of a biological weapons verification mechanism.

As the cornerstone of international biological arms control, the BWC was opened for signature in 1972 and entered into force in 1975, with more than 180 states parties. It is the first international convention of the international community to ban an entire category of weapons of mass destruction, and together with the Geneva Protocol and UN Security Council Resolution 1540 (2004), constituting the basic arrangement of the international biological arms control system.

The lack of monitoring, verification and punishment for compliance by states parties to the convention has led to widespread international recognition of the need for a protocol that includes a verification mechanism. After years of negotiations, the draft Biological Weapons Convention Compliance Protocol, which integrates the positions of all parties, was formed.

However, in 2001, the states parties to the Convention suddenly discovered that years of effort had been in vain as "a new US administration with a demonstrated antipathy to arms treaties is about to block the final step," said Barbara Hatch Rosenberg, co-founder of American Scientists Working Group on Biological and Chemical Weapons.

At that time, the administration of then US president George W. Bush alleged that the US rejected the draft verification protocol because it had numerous problems and serious errors. Subsequently, at successive review meetings, the US clearly expressed its opposition to restarting the relevant negotiations.

The US was one of the countries that initially pushed for the BWC. Influenced by international and domestic political, scientific and cultural factors, US biological weapons policy is a strategic approach based on precise calculation and a fragile balance based on realism, said Wang Xiaoli, biological expert of the China Arms Control and Disarmament Association.

With the development of the times, especially the changes in biotechnology, this strategic orientation and fragile balance can easily collapse, Wang told the Global Times.

Russia’s Ambassador to the UN Vasily Nebenzya shows pictures during the UN Security Council meeting discussing US biological warfare labs in Ukraine, on March 11, 2022. Photo: IC

Russia’s Ambassador to the UN Vasily Nebenzya shows pictures during the UN Security Council meeting discussing US biological warfare labs in Ukraine, on March 11, 2022. Photo: IC

US harvests labs & scientists after Soviet dissolution

After the Cold War ended, the US harvested a large number of bio-labs and scientists from the former Soviet Union with the excuse of "preventing bio weapons threats."

After the Soviet Union collapsed, Russia did not have enough money to destroy the nuclear and biological weapons inherited from the Soviet states.

In 1991, US senators Sam Nunn and Richard Lugar promoted related legislation, through which the Cooperative Threat Reduction Program (CTR) was set up to address these weapons of mass destruction.

The program was supervised by the Defense Threat Reduction Agency and included the Cooperative Biological Engagement Program (CBEP). Related efforts have been extended repeatedly by Washington and lasted for decades.

According to an article of the Bulletin of the Atomic Scientists in 2008, the initial focus of the program was on the nuclear weapons inherited by Belarus, Kazakhstan, and Ukraine and on Russia's nuclear weapons, materials, and facilities.

Following the successful denuclearization of Belarus, Kazakhstan and Ukraine, and with a bulk of the most pressing Russian nuclear proliferation threats resolved, CTR's efforts turned its focus to dealing with biothreats.

However, the CBEP gradually became different from what it was intended for. The US did not destroy all facilities storing dangerous pathogens in Soviet states, instead, it upgraded many labs. These labs, although located outside the US, are in fact controlled by Washington and their materials and research results have been transferred to the US, according to documents recently disclosed by Russia.

After the dissolution of the Soviet Union, tens of thousands of scientists lost their jobs. With the excuse to prevent these scientists from going to "rogue countries" for a living, the US established the Civilian Research & Development Foundation (CRDF) to recruit related scientists.

According to open materials, the US passed related legislation in 1992 and established the CRDF in 1995. Founders of the CRDF include public agencies like the US State Council and the US Department of Defense as well as private agencies such as the Open Society Foundations, founded by American billionaire George Soros.

At first, the US Department of Defense allocated $5 million for the launch of CRDF and Soros donated another $10 million. Yearly budget for the CRDF was about $10 million at the beginning. In 2000, then US president Bill Clinton proposed that the spending of the CRDF that year should be tripled from $64 million to $176.5 million.

US goes back on its words

In 2001, a decade after the end of the Cold War, the US made clear its opposition to the establishment of a multilateral verification mechanism for the BWC, probably because of its intensifying research on biological weapons and the improvement of its own biological research capabilities.

John Bolton, then US undersecretary of state for arms control and international security affairs, in 2002 explained three reasons why the US rejected the Draft Protocol to the BWC: first, it was based on a traditional arms control approach that will not work on biological weapons; second, it would have compromised national security and confidential business information; and third, it would have been used by proliferators to undermine other effective international export control regimes.

Biological arms control has its particularities, but the measures including declaration, visit and verification proposed in the Draft Protocol to the BWC are feasible and supported by most countries, Guo Xiaobing, a research fellow with the China Institutes of Contemporary International Relations, responded to the US' "explanation."

The US seems to have a skeleton in its closet in the field of biology, Guo said. The biological laboratories at Fort Detrick, for instance, severely lack transparency, and it is unclear whether the US is pursuing biological weapons under the guise of defensive biological researches, he added.

Wang believes that there are deeper reasons for the US' rejection of a verification regime. First of all, the US has put its domestic politics ahead of the common interests of the international community. Both the BWC and the Draft Protocol to the BWC are the result of the contracting parties maximizing international interests and seeking common ground while putting aside differences. But the volatile political climate in the US can easily break this fragile balance.

Secondly, the driving mechanism of the US to resolve the biological weapons issue has changed, Wang said. The development of biological technologies, including synthetic biology and gene editing, has prompted the US to reexamine the strategic value of biological weapons. In the name of protecting itself against bio-terrorism threats, the US has drastically increased its bio-defense budget. It becomes an important strategic goal of the US to maintain its superiority and hegemony in biotechnology, and to achieve absolute security in the field of biology.

Thirdly, out of the protection of the military and industrial interests of the US and its allies, the US is wary of the multilateral agreements on biological weapons arms control that require transparency and are governed by international laws, said Wang. And the lobbying of American biopharmaceutical and biotechnology industries pushes the US further away from the negotiating table of the verification protocol, he added.

US' credit deficits under dark records

Despite US President Joe Biden's recent solemn statement that Washington has no biological and chemical weapons in Europe, no one can take his statement at face value as the US has lost its credibility over repeated lies throughout the years. After World War II, the US sought to gain an edge in biological weapons research by making a secret deal with Japan to protect the Japanese war criminal, microbiologist Shiro Ishii who led Unit 731. Located near Harbin, Northeast China's Heilongjiang Province, and at the time occupied by Japanese invaders, Unit 731 was notorious for conducting Japanese biological warfare experiments. Ishii later served as a bioweapons consultant at Fort Detrick Biological Warfare Laboratories.

In addition, after the end of World War II, the US "recruited" a large number of Nazi scientists. One of them was Kurt Blome, director of the Nazi Biological Warfare Program.

Several US-funded biological laboratories have been found to have carried out deadly human experiments. The location of Washington's overseas biological laboratories also overlaps with the site of many reported local accidents.

The US remains the only country in the world that still possesses chemical weapons. It also stands alone in opposing the establishment of the verification regime. The country has twice exceeded the time limit to destroy all its chemical weapons stockpiles despite repeated requests by the international community. It is also tight-lipped about research carried out in biological laboratories overseas.

Faced with Russia's evidence, the US simply tried to dismiss it as "disinformation." As Chinese Foreign Ministry spokesperson Zhao said, the US responses so far have been self-contradictory and perplexing.

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US pardoned Japan’s war criminals in exchange for Unit 731 chemical weapons – how trustworthy is its clarification on Ukraine labs?

 

The US is a country with a long history of using and developing chemical and biological weapons in other countries, and such moves, that contravene human rights bills and international laws that could be traced back to 1940s after World War II, have been largely ignored by most mainstream Western media outlets, and analysts have predicted that the US' dirty record in this field could spike global concerns over its recent operating of biological laboratories worldwide.

According to information gathered and gleaned from interviews done by the Global Times reporters, the US government has cooperated and colluded with Japanese war criminals to obtain data and technologies for the making of biological and chemical weapons for which Japan conducted inhumane live human experiments on innocent Chinese people during Japan's invasion of China.

Most of the data and files collected by said Japanese war criminals were acquired by scientists in Fort Detrick, the center of the US' biological weapons program, and after the Central Intelligence Agency (CIA) was established in 1947, the agency participated in the relevant research pertaining to the development of biowarfare weapons.

Ruins of Japan's notorious Unit 731 facilities in Harbin, Northeast China's Heilongjiang Province Photo: VCG

Ruins of Japan's notorious Unit 731 facilities in Harbin, Northeast China's Heilongjiang Province Photo: VCG

Nasty cooperation

Unit 731, infamous for conducting Japanese biological warfare experiments, was located near Harbin, Northeast China's Heilongjiang Province, which was occupied by Japanese invaders. The monstrous unit was created by Japanese war criminal, microbiologist Shiro Ishii in 1936, and eventually was comprised of 150 buildings and had the capacity to hold 600 people at a time to be experimented on, according to the book titled Factories of Death: Japanese Biological Warfare, 1932-1945, and the American Cover-up.

Unit 731's experiments involved deliberately infecting people, primarily Chinese prisoners of war and civilians, with infectious agents, and exposing prisoners to bombs designed to penetrate the skin with infectious particles.

In 1945-46, representatives of the US government made similar discoveries in both Germany and Japan, unearthing evidence of unethical experiments conducted on human beings.

However, the US played an equally key role in concealing information about biological warfare experiments by Japan and secured immunity from prosecution for the perpetrators. Along with the data from Unit 731 and experiments inside Fort Detrick, Howard Brody, director at the Institute for the Medical Humanities, University of Texas Medical Branch, shared in an article released in 2014 details of the shady deal, titled United States Responses to Japanese Wartime Inhuman Experimentation after World War II: National Security and Wartime Exigency.

Masks used by Japan's notorious Unit 731 are exhibited in a museum in Harbin, Northeast China's Heilongjiang Province. Photo: VCGMasks used by Japan's notorious Unit 731 are exhibited in a museum in Harbin, Northeast China's Heilongjiang Province. Photo: VCG

Fort Detrick, which is an enormous complex, has, for decades, been the center of American military research related to biology with only a select few being privy to details of operations, Stephen Kinzer, senior fellow at the Watson Institute for International and Public Affairs at Brown University, was cited by the Xinhua News Agency in a report in July 2021.

Kinzer is the author of bestseller Poisoner in Chief, which revealed the little-known life story of Sidney Gottlieb, master CIA chemist and head of secret mind control experiments at Fort Detrick and elsewhere in the world.

He said in order to find out "the limits of human endurance - how can you kill people, at what moment do they die, how can you seize control of their bodies and their minds," Gottlieb and the CIA hired "Nazi doctors who worked on the concentration camps, and their Japanese comrades," for example, war criminal Shiro Ishii, who headed the notorious Japanese military biological warfare program called Unit 731 during World War II.

Keep it in the dark

The CIA and the US Army Chemical Corps worked closely together. When the US finalized its secret agreement of cooperation with Shiro Ishii and Unit 731 after World War II, it was decided that the cooperation would be kept strictly within "intelligence channels," Jeffrey Kaye, a former clinical psychologist in San Francisco, told the Global Times.

Kaye wrote a book published in 2017 on the torture of detainees in the Guantanamo Bay detention camp, and later started his research into US biological warfare during the Korean War (1950-53), most documents of which were systematically redacted and destroyed during the McCarthy era.

Kaye said that such cooperation was kept top secret and purely on a need-to-know basis. From 1949, the CIA had a unit inside Fort Detrick - which was called Camp Detrick back in those days - which researched and developed biological weapons for use in covert operations.

"Much of this was done in a CIA program known as MKNAOMI. It was this unit, called the Special Operations Division, that developed, for instance, the feather bomb, which was an adapted bomb used to deliver propaganda leaflets, except instead it delivered feathers and similar material coated with pathogens like anthrax. The use of infected feathers for such warfare was pioneered by Unit 731," Kaye revealed.

Kaye said that although he does not have a document that specifically states the US got the idea from Unit 731, it is still a reasonable inference to make given the known level of alliance between Japanese units like the Unit 731 and Fort Detrick, that the feather bomb idea came from contact with Unit 731. Moreover, an official from Fort Detrick who was involved with the initial interviews of Unit 731 officers after the war, Colonel Murray Sanders, told two British researchers that Ishii was brought to lecture at Fort Detrick. In addition, the chief of the CIA Special Operations Division at Fort Detrick, John Schwab, submitted an affidavit under oath in a criminal trial in 1959 that the US had the means to conduct biological warfare as far back as 1949, according to Kaye.

An aerial view of the barracks in Camp Detrick (later Fort Detrick) in Maryland, September 24, 1944 

Photo: VCGAn aerial view of the barracks in Camp Detrick (later Fort Detrick) in Maryland, September 24, 1944 Photo: VCG

Biolabs worldwide

Russian President Vladimir Putin gave an extensive speech on the Ukraine crisis on March 16 and he pointed out that the US is conducting military biological programs in Ukraine.

"There was a network of dozens of laboratories in Ukraine, where military biological programs were conducted under the guidance and with the financial support of the Pentagon, including experiments with coronavirus strains, anthrax, cholera, African swine fever, and other deadly diseases," Putin said during his speech.

Russia's Ambassador to the UN Vasily Nebenzya shows pictures during the UN Security Council meeting discussing US biological warfare labs in Ukraine, on March 11, 2022. Photo: ICRussia's Ambassador to the UN Vasily Nebenzya shows pictures during the UN Security Council meeting discussing US biological warfare labs in Ukraine, on March 11, 2022. Photo: IC

This is the latest example to spark global concern over the US' biolabs worldwide. According to the information provided by the US to the Conference of Parties of the Biological Weapon Convention (BWC), there are 336 US laboratories around the world. Scientists and analysts from all around the globe have once again expressed their worries and concerns over the US biological programs.

But unfortunately, effectively enforcing the law when it comes to the US under the influence of US hegemony remains an enduring problem for the international community, said experts, noting that the countries most affected by the US biological programs should push the US to accept the protocol for monitoring biological weapons by the BWC.

US' dirty records of using, developing bio, chemical weapons. Graphic: Zhao Jun/GTUS' dirty records of using, developing bio, chemical weapons. Graphic: Zhao Jun/GT

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Sunday, February 7, 2021

Changing with the times: Malaysian Chinese associations need to reinvent themselves

Countries since independence with a young history (less than 500 years) tend to have a vast number of naturalised citizens. The United States, Australia, Singapore and Malaysia are just some of the countries that gain independence from the colonial master at that time, Great Britain. Citizens by law have sworn allegiance to the country that hey live in and they have to abide by the laws of the country.


IN the blink of an eye, I turned 60 last year. I was born in 1960, just three years after Merdeka. I have been a Malaysian citizen from birth whereas my brother, who was born eight years earlier, had to go through a naturalisation process, from a red identity card to blue identity card to finally a naturalised citizen of Malaysia.

My father went through the same process even though he emigrated from China to Malaya in the 1930s. My mother was born in Jasin, Melaka, in the late 1920s and she too had to go through the process to become a naturalised citizen.

Countries since independence with a young history (less than 500 years) tend to have a vast number of naturalised citizens. The United States, Australia, Singapore and Malaysia are just some of the countries that gain independence from the colonial master at that time, Great Britain.

Nobody can force a citizen to leave the country but citizens can make personal choices should they decide to leave and emigrate to another country. Citizens leave because of economic or political reasons, and to escape domestic civil wars.

As a country that embraces democracy, Malaysian citizens above 18 years old have the right to vote.

One citizen, one vote. Voting trends in Malaysia since independence have been by race, for example, a Malay candidate for a Malay majority constituency and so forth.

If this voting trend continues, we will continue to see the same composition of politicians by race in our Parliament in the future.

Due to slower growth rate and naturalisation policies, the minority Chinese and Indians have, by percentage to population, been on a reducing trajectory – the Chinese from 37% in 1957 to 22% in 2020 and to 18% by 2040.

It is inevitable that there will be a diminishing Chinese voice in Parliament.

With a diminishing influence in the decision making of government policies, minority communities will face diminishing share of economic and educational opportunities in this country.

What then can the diminishing minority communities do to ensure a fair share of economic and educational opportunities for the next 60 years?

As a Malaysian Chinese going into my twilight years, I have no answer to this dilemma.

Perhaps the Chinese community, especially the younger generation, would like to start a conversation on this topic.

My only advice is that the conversation tone must be positive and reconciliatory and not confrontational. It must be a win-win strategy, never a zero-sum game.

The conversation should be centered on self help within the community if no help is seen coming. The dialogue must be about the Malaysian Chinese investing their loyalty into this country in the hope of a brighter future.

The discussion must focus on helping the poor of all races and to bridge the gap between rich and poor Malaysians. Only then will we have a stable and just society.

Lending a helping hand

Most immigrants from China in the early 1900s were housed, fed and given a job by their clansman upon arriving at the shores of Malaya. They were identified by their village, district, province and by their spoken dialects.

As such, in Malaya then and Malaysia until the 1990s, you can still identify the dialects with the trade and concentrated communities of the same province in particular towns.

Till today, the older generation of the same dialects share a special friendship-bond as it was with their forefathers

These individual communities then set up associations by dialect, first in townships and then grew into a national association. Leaders of the association were normally business and academic leaders of the community.

The associations helped their members (mostly uneducated) to deal with government matters, for example land matters, and offered scholarships to bright students as well as financial and welfare assistance to the poor and the elderly.

The various associations and the local rich donated to build schools and temples.

Like all associations and societies, sustainability over the long term depends on new membership enrollments.

But the younger generation has no interest in joining and now the association’s role in the community is diminishing as well.

How can these associations reinvent themselves to play the community leader role again, especially in this pandemic recession? Offering refuge to their clansman or the poor Chinese community at large like before?

Many unemployed families are having reduced or no income and have problems putting food on the the tables and paying rent for a roof over their heads.

Can the association and the immediate community distribute foodstuff to these families like the Foodbank model in the US? These people have no place to turn to.

The Chinese community leaders can play a bigger role in protecting the welfare of the Chinese community.

When no help is forthcoming, the leaders must step up, the younger generation must participate and contribute in whatever ways they can to help the community and that no clansman goes hungry and is left behind.

In my next article, I would like to discuss about education and career choices for the new generation of Chinese youth.

I would like to start a conversation about our Chinese SMEs who are suffering in silence and in clear desperation of financial assistance. I welcome all positive recommendations and ideas and you can write to starbiz@thestar.com.my. In the meantime, help your community by buying from your local SMEs and hawkers. Help the elderly and the poor by whatever means possible. Let us build a caring and supportive community.

That will be a good start. One small step towards the next 60-year journey.

by Tan Thiam Hock is an entrepreneur. Views expressed here are the writer’s own.

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Century-old clan associations need to re-invent themselves to stay alive


 

Tuesday, April 7, 2020

Second sitimulus package of RM10bil for Malaysian SMEs and workers affected by coronavirus pandemic


https://www.thestar.com.my/news/nation/2020/04/07/rm10bil-a-boon-for-smes-and-workers?jwsource=cl

https://youtu.be/wGzVdeA3b0g
80% of financial help will be additional wage subsidies for employees

PETALING JAYA: Small and medium enterprises (SMEs) and their employees will benefit from a RM10bil financial lifeline.

This is the second stimulus package that the government has announced within 10 days.

The first addresses the plight of the underprivileged and the middle class caught in dire straits due to the coronavirus pandemic.

The latest package of measures, dubbed the Additional Prihatin, is aimed at assisting SMEs in riding out the Covid-19 storm.

Of the RM10bil, almost 80% will be for additional wage subsidies for those drawing RM4,000 and below monthly.

This is in response to the pleas from many businesses and commerce groups who asked for more financial help.

This is an addition to the RM5.9bil wage subsidy in the RM250bil Prihatin package announced on March 27.

The remaining RM2.1bil in the second package will be in the form of special grants for eligible micro SMEs, with 700,000 of them expected to each receive RM3,000.

Prime Minister Tan Sri Muhyiddin Yassin (pic) hoped that the additional RM10bil would assist in easing the financial burden of the SMEs and ensure that all their workers remain employed.

“SMEs are the backbone of Malaysia’s economy and the sector accounts for more than two-thirds of the number of jobs in the country and close to 40% of the economy.

“It is therefore vital for us to ensure that SMEs continue to be resilient and sustainable in facing the economic stress and challenges that we all experiencing now,” he said in a televised address yesterday.

The wage subsidy is expected to benefit about 4.8 million SME workers who earn up to RM4,000 a month.

Companies with more than 200 employees will be eligible for a RM600 wage subsidy for each worker, while those that have between 76 and 200 employees will receive the RM800 subsidy.

Companies that employ between one and 75 employees will receive RM1,200 for every worker.

The wage subsidy is for three months and is meant for employers whose companies have registered with the Companies Commission of Malaysia (CCM) or the local authorities before Jan 1 and are registered with the Social Security Organisation (Socso).

It also comes with a condition that employers must retain their staff for at least six months – the three months during which the subsidy is paid and the three months after that.

The government has also abolished the 2% interest under the RM500mil microcredit schemes offered by Bank Simpanan Nasional.

The easy loan scheme for micro-companies is extended to Tekun Nasional with a maximum loan limit of RM10,000 per company at 0%. A funding of RM200mil has been prepared for this purpose.

Businesses can only apply for either one.

Muhyiddin also announced that landlords of private premises who reduce their rental rates by at least 30% from April to June this year will qualify for tax deductions.

He made a plea to landlords to reduce their rental rates during the period and for three months after it ends.

The tax deductions are equivalent to the amount of rent they reduce for three months, subject to the condition that the reductions are at least 30% during the period.

Muhyiddin added that SMEs in premises owned by government-linked companies (GLCs) will have their rental waived or they will enjoy discounts on the rental.

He thanked GLCs such as Mara, Petronas, Permodalan Nasional Bhd, PLUS, UDA and several state-owned companies that have agreed to give these concessions.

“We are also allowing a 25% reduction in the foreign worker levy to all companies whose worker permits end between April 1 and Dec 31. However, this is not applicable for domestic helpers,” he said.

Muhyiddin also urged licensed moneylenders to emulate banks by offering a moratorium for SME instalment payments for six months beginning April.

In another win-win measure, the government is encouraging consultations to be held between employers and employees on employment terms, including the options of pay cuts and unpaid leave during the enhanced movement control order (MCO) period.

“Employers and employees can now refer to the Labour Department for advice to resolve any issues,” he said.

There is also an automatic 30-day moratorium from the last day of the enhanced MCO for companies to submit statutory documents to CCM.The deadline for companies to submit their financial statements has been extended for three months from the last day of the enhanced MCO.

This applies to companies whose previous financial years ended between Sept 30 and Dec 31 last year.

The companies must apply for the extension and no late submission fees will be imposed.

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Stimulus package a welcome relief

 
Source: Samenta - Averest SME survey

SMES hope money can last until after the MCO

PETALING JAYA: While the additional stimulus for small and medium enterprises (SMES) is a welcomed relief, response from the industry has been somewhat tepid as these additional measures will likely only be sufficient to help soothe the pain until the end of the movement control order (MCO) in mid-april.

If the MCO is extended, the supplemental stimulus will not be enough to keep businesses going and the likelihood of them shuttering their operations will still be on the cards as they brace for a recession.

In an announcement yesterday, the Prime Minister presented an additional stimulus of Rm10bil to ease the financial burdens of the SMES following calls from the industry to provide greater support for the business community.

SME Association of Malaysia president Datuk Michael Kang took the stimulus positively but noted that there were other issues not addressed in yesterday’s announcement.

“We welcome these measures. But the measures are not really enough. They should allow SMES to do business to get their income and cashflow during this MCO period. But if the MCO is extended, these measures are definitely not enough,” he said.

For now, though, Kang is just grateful that the industry, at the very least, “got something”.

“This shows that the government is understanding and they are trying to help so that the SMES can survive and can retain as many jobs as possible.

“It didn’t fully meet our expectations. But of course, we proposed a lot of things,” he added.

One of the important issues which was not addressed in the stimulus is statutory payments, which many employers have said are among the main burdens on their monthly cashflow. Many business associations had asked for a waiver on EPF contributions – or a deferment till year end – and a deferment of monthly tax deductions to the end of the year.

“We hope this will be addressed later,” said Kang.

He also pointed out that there is a lack of impetus to stimulate the economy, moving forward, and this would continue to affect market demand post-mco, making it even more difficult for businesses to get back on their feet.

The new package saw an increase in allocation for the wage subsidy programme to Rm13.8bil from Rm5.9bil previously, with changes made to the payout amount based on the number of workers in a company.

For companies with more than 200 employees, a subsidy of RM600 per employee is maintained and the maximum number of workers eligible for subsidies will be increased from 100 to 200 workers.

For companies with 76 to 200 employees, the company will receive a subsidy of RM800 per employee while companies with up to 75 employees will receive a subsidy of RM1,200 per employee.

The expanded initiative is expected to benefit 4.8 million workers.

Special grants have also been doled out to micro businesses, which make up the largest portion of SMES and are the hardest hit.

The government has also incentivised owners of private premises to reduce rental rates for the duration of the MCO plus, three months after, with tax deductions. While this will help businesses in the services industry, particularly those in food and beverage, retail and accommodation – which make up about 63.9% of the services-based SMES – it remains to be seen if landlords will indeed take the bait.

Meanwhile, Ambank Group chief economist Anthony Dass said the additional stimulus measures supporting the SMES is positive, given that many are experiencing tight cashflow due to no or minimal sales revenue.

“However, the tight cashflow is not just because of the MCO. Businesses were also affected by the poor implementation and policy inconsistencies in the past. Besides, they were affected by the trade war and other domestic challenges.

“Even if the MCO is lifted by midapril or end April, demand is expected to be weak for some time due to travel aversion and social distancing.

“The drop in consumer and corporate spending will intensify the adverse chain reaction that will fuel the collapse of micro businesses, especially the younger and smaller businesses, due to their highly vulnerable situation,” he said.

Not every small business is equipped to survive this downturn, said Dass. And because small businesses contribute disproportionately to job loss during recessions, policy responses are necessary.

“Many SMES have been forced to close their doors and some may not reopen. Apart from revenue loss, they will be impacted by poor credit standings,” he added.

The additional measures will more likely help reduce bankruptcies and bad loans but job losses will remain a major concern.

Apart from rolling out effective measures to help SMES, another crucial point that policymakers will have to take note of is fast and smooth delivery of these measures. With most companies’ cashflow lasting only for two months or so, they cannot afford to weave through a mountain of red tape for a meagre sum.

A few companies that have tried to apply for aid under the Special Relief Facility announced last month said that not all banks are offering the loan and many of those that were, imposed a lot of conditions such as they have to be existing customers to qualify. Additionally, most bankers are unsure about how to handle the applications.

“The procedures and documents are proving to be quite a challenge,” said one food manufacturer.

These loans will also take time to be approved and are further subjected to the approval of Bank Negara and Credit Guarantee Corp Malaysia.

The Prime Minister has assured that the initiatives under the stimulus package will be monitored and implemented quickly and efficiently under a new implementation unit set up in the Finance Ministry. The unit will report directly to the Finance Minister and the Prime Minister.

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 Companies’ subsidy boon

75% of firms to enjoy RM1,200 aid per worker

“Most SMES in Malaysia employ fewer than 76 people. So actually, about 75% of companies qualify for this RM1,200 per employee.” Koong Lin Loong

PETALING JAYA: About 75% of companies in Malaysia are expected to benefit from the RM1,200 payout per employee under the expanded wage subsidy programme.

Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) SMES committee chairman Koong Lin Loong said the majority of companies in Malaysia, especially small and medium enterprises (SMES), employ fewer than 76 people and would be entitled to this subsidy.

In the Prihatin SME+ stimulus package announcement on Monday, the government increased the allocation for the programme to Rm13.8bil from Rm5.9bil previously.

Under the programme, companies with more than 200 workers will receive a subsidy of RM600 per employee and the maximum number of workers eligible for the subsidy is 200 workers.

For companies with 76 to 200 workers, the company will receive a subsidy of RM800 per employee and companies with up to 75 workers will receive a subsidy of RM1,200 per employee.

“The main objective of the wage subsidy is to help employers retain employees. It should also help the bigger players.

“That was why we asked for the programme to be expanded to all companies, but we need to help the smaller ones more.

“And if you look at most SMES in Malaysia, they employ fewer than 76 people.

“So actually, about 75% of companies in Malaysia qualify for this RM1,200 per employee,” he said.

Koong also clarified that companies with up to 75 workers did not need to prove that there was a 50% drop in sales since January to apply for this subsidy.

Only those with 76 workers and above will need to provide supporting documents to show that sales have declined by at least 50% since January.

“People think that every company needs to prove the 50% drop in sales.

“Actually if you look at the criteria, companies that have up to 75 employees don’t need to prove that sales dropped by more than 50%.

“They are exempted,” he said.

He added that the criteria to prove a 50% or more drop in sales was imposed on companies with 76 workers and above, as they are likely bigger players and would have slightly more reserves to last a little longer.

“If you are a bigger company and you have more than 200 employees, that is a total of RM120,000 that you can get in a month.

“And this programme is for three months. That is quite a bit.

“I think companies are receptive of this. I think that this is actually something significant from the government to help our businesses.

“We have to be fair to the government. Although it can’t subsidise 75% of wages like Singapore because of limited resources, this up-to-75-people criteria covers most companies already,” said Koong.

Prihatin Plus Stimulus Package

 BELOW are some frequently asked questions relating to the Prihatin Plus Stimulus Package.


Q : I am a micro-sme, is there a specific initiative for me?

A: Under the Prihatin SME+ stimulus

Package, a special Prihatin Grant worth Rm2.1bil will be established for eligible micro enterprises. A grant of RM3,000 will be provided to each company. The micro SMES must be registered with LHDN.

The government has also abolished the 2% interest rate to 0% under the Micro Credit Scheme amounting to Rm500mil under Bank Simpanan Nasional (BSN). The soft loan scheme for micro enterprises is also extended to TEKUN Nasional with a maximum loan limit of RM10,000 at 0% for each enterprise.


Q: What is a micro-sme?

A: According to SME Corp, a micro-sme is defined as a company with sales turnover of less than RM300,000 or employs less than five people.

Q : How can I obtain financing from the Rm5bil Special Relief Facility (SRF) at an interest rate of 3.5% for SMES?

A: Information and application for the SRF can be made through participating banks or online through the / imsme.com.my/ portal. The IMSME portal is Malaysia’s online SME financing/loan referral platform managed by Credit Guarantee Corp Malaysia Bhd (CGC) and is supported by Bank Negara.

Financing of up to RM300,000 is also available for SMES in operation for less than 4 years under the Bizmula-i and Bizwanita-i Scheme on the IMSME portal.


Q : Can I make adjustments to my workers’ employment terms to cope with the MCO?

A: The government has agreed to encourage negotiations between employers and employees on the terms of their employment, including the option to deduct salaries and allow unpaid leave during the MCO.

Employers and employees can refer to the Labour Department to obtain advice in regards to any problems arising from a resolution.

Negotiations have to be based on employment laws of the country.


Q :What is the wage subsidy programme?

A: The wage subsidy programme is a financial assistance paid to employers for every worker who earns up to RM4,000 a month. It is intended to help employers with more than 50% drop in sales since January with headcount costs to continue operating and prevent employees from losing their jobs.

Companies with more than 200 employees will receive a subsidy of RM600 per employee for up to 200 workers. Companies with 76 to 200 employees will receive a subsidy of RM800 per employee while companies with up to 75 employees will receive a subsidy of RM1,200 per employee.

Employers can submit their applications for the subsidy at prihatin.perkeso.gov.my/ and further information can be obtained at perkeso.gov.my/ index.php/en/wage-subsidyprogramme


Q :How can a company with 76 employees and above prove that it is suffering a decline in revenue or sales of 50% or more?

A: Employers can prove a decrease of 50% or more with supporting documents showing the total sales revenue or income in January 2020 compared with the other months.

Q :When does the wage subsidy programme come into effect and end?

A: The wage subsidy programme goes into effect on April 1, 2020 and is for a duration of three months. The deadline for application is Sept 15, 2020.

Q :What documents are needed to apply for the wage subsidy programme?

A: i. List of employee that the subsidy is being applied for

ii. Employer’s bank account statement (front page only)

iii. Employer’s bank registration information

iv. Copy of the company’s registration documents

v. Copy of declaration form PSU50

vi. Supporting documents such as financial statements or sales reports to prove loss of revenue that has been verified by management or other related documents

Q :My company has various departments / branches. Can I select only part of the staff from the different departments / branches for the wage subsidy programme?

A: Yes. An employer can choose any local employee with a salary of up to RM4,000 to qualify for the wage subsidy programme.

Q :Who is NOT eligible for the wage subsidy programme?

A: i. Company that registers and operates on or after Jan 1, 2020;

ii. Employers and employees who are not registered with and/ or have not contributed to SOCSO

iii. Employees who are financially supported by the Employment Retention Programme (ERP) in the same month

iv. Employees with monthly salary of over RM4,000

v. Employees who have already been dismissed

vi. Employees of the public sector, federal and state statutory bodies, local authorities and those self-employed

vii. Foreign workers and expatriates



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