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Saturday, April 14, 2018

Strong navy steers more balanced, steady rise of China

https://youtu.be/yMdbdbU9zts https://youtu.be/WedQQeld8rE https://youtu.be/JsvlfyTyj9s https://youtu.be/vbFKyrGJU70 https://youtu.be/2Lixf9SpzxM  
https://youtu.be/4lIU5TFyc_U  
 https://youtu.be/e9O21AljMow

On April 12, Chinese President Xi Jinping, who is also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, made important remarks during a naval parade held in the South China Sea. The event is the largest maritime military parade in the history of the People's Republic of China, showcasing a new height of the People's Liberation Army Navy via its Liaoning carrier battle group and the new-generation nuclear submarine. China's ability to defend world and regional peace has reached another milestone.

During his speech, Xi noted that the mission of building a strong navy has never been more urgent. This is crucial to point out in today's international environment and his tone carried a robust sense of mission.

Xi has expressed in several key reports that China is closer than ever to achieving the great rejuvenation of the Chinese nation. However, history reminds us that the closer we are to accomplishing a glorious goal, the more the pressure and risk. Building a strong navy, as well as national defense, has never been more significant to China.

After 40 years of reform and opening-up, China has risen to become the world's second largest economy. In this process, China has further advanced its unstoppable economic potential. However, China's elevated status, accompanied by its incredible progress, has attracted both friendly and hostile gestures. Thus, catching up in national defense is necessary to attain balanced growth. For any big nation, strong economic development without balanced efforts in national defense is a dangerous combination. This might give other powers the idea and temptation to subdue China with non-economic methods.

A country's navy is considered the force that bears most pressure, while also being the most active in the modern military. Despite all the military forces of a country, the navy usually stands at the forefront in crucial moments. The technologies for naval forces are complex and at a high cost, representing the refined strength of its country. Strong naval forces only belong to a powerful country, reflecting the accumulation of a nation's strength, and indicating the nation's future and destiny.

The step-by-step development of Chinese navy is steady and strong. Through the South China Sea military parade, Chinese people can see that part of China's economic strength is quickly converting to military strength. We can also predict that China's ability to convert between its strengths will be stronger in the future.

The logic of maintaining peace is different among major, mid-sized and small countries. China must objectively understand the security situations we are dealing with and build the People's Liberation Army (PLA) to show that it projects power and focuses on maintaining peace. This is an urgent task which requires racing against time.

China must ignore the noise of the "Chinese military threat" theory from some Western countries. The theory is a misrepresentation of China's role as the world's second-largest economy and its role in securing global peace. The theory is also a discrimination to China's status as one of the world's major powers.

To build a top-tier navy, China has a long way to go. To understand the enormous challenges China faces in building a blue-water navy, one should look at how other countries monitor and scrutinize China's foreign ports and naval supply checkpoints. Furthermore, China's navy needs to accumulate vast experience to become an effective instrument in China's toolbox for deterrence.

There are two essential strategic questions for China: How do we show others our determination in defending national interest under the thesis of 'China's peaceful rise'? How do we communicate our simultaneous dedication to world peace and resolution to fight aggression?

Many WWII-era ships are still commissioned by other navies around the world, and yet more than half of the ships participating in this parade started their service around the time of the 18th National Congress of the Communist Party of China. The Chinese navy has rapidly developed, and we believe it will continue to do so until it reaches its maturity. China will be more secure and the world more peaceful as the Chinese navy sails into the deep blue sea. - Global Times

Friday, April 13, 2018

China buyers eyeing Penang property in growing tourism

https://youtu.be/olQaqTyb6qo
Worthy investment: Mah Sing sales executive Victor Cheah (left) introducing the M Vista project to visitors at StarProperty.my Fair in Queensbay Mall, Penang.

Visitors checking out MTT Properties & Development Sdn Bhd’s Botanica CT Centre during the StarProperty.my Fair in Queensbay Mall, Penang.

PENANG recently come under the radar of investors from China, said Property Talk principal Steven Cheah.

“It used to be Australia that attracted their interests, but now it is Penang. So, we can expect to see potential house buyers from China at the fair,” he said.

Cheah was speaking at the sideline of the StarProperty.my Fair 2018 which opened at Queensbay Mall yesterday and will end on Sunday.

He said the China investors were interested in high-rise properties near the sea priced at around RM1mil to RM2mil.

Cheah added that house buyers were now more selective due to higher interest rates.

“Most of them will be paying attention to the new launches in the southwest district and in Seberang Prai, where it is still possible to find properties priced below RM500,000,” he said.

Cheah said with the right location, good road connectivity, product type and concept, demand for properties in Penang would still be strong.

Potential house buyers checking out BinWan Development Sdn Bhd’s Gelugor Heights during StarProperty.my Fair in Queensbay Mall, Penang. Potential house buyers checking out BinWan Development Sdn Bhd’s Gelugor Heights during StarProperty.my Fair in Queensbay Mall, Penang.

“Malaysia’s strong fundamentals augur well for the outlook going forward.

“Malaysia’s population is young with an average age of 30 to 31 years old, and many people are still looking to start a family. This is a good sign for the property market.

“There will be weaknesses in between as the market is adjusting to the supply and demand situation.

“From the medium to long term perspective, property is still one of the choice investments preferred by investors,” he said.

Meanwhile, Yew Chor Hian, who hails from Kedah, said he was interested in a high-rise property priced at around RM600,000.

“I work in Bayan Baru, so I am interested to stay on the island.

Visitors renewing The Star newspaper subscription at The Star info counter at the fair.
Visitors renewing The Star newspaper subscription at The Star info counter at the fair.

“The size and location are important to me,” he added.

Australian Ray Stubb said he was looking for a high-rise condominium.

“We are interested in getting a unit near the sea,” he said.

A total of 17 exhibitors are displaying their products at the fair, of which 15 are developers.

The developers are SPNB Aspirasi Sdn Bhd, Mah Sing Group Bhd, Ewein Zenith Sdn Bhd, Iconic Land Sdn Bhd, Regata Maju Sdn Bhd, JKP Sdn Bhd, SP Setia Bhd, MTT Properties & Development, Galeri Tropika Sdn Bhd, Devoteshens Sdn Bhd, Binwan Development Sdn Bhd, Bertam Properties Sdn Bhd, Corfield Development Sdn Bhd, Penang Development Corporation and Pembangunan Rasa Sempurna Sdn Bhd.

The other two exhibitors are Property Talk, a Penang-based real estate agency, and East West One Marketing Sdn Bhd, which is an oil palm investment company.

The Star by David Tanby david Tan


Related News  

 

A place to thrive for millennials - Metro News

The crowd checking out a scale model of The Zen project that is part of Parcel 3 of Penang World City in Bayan Mutiara. – Photos: GARY CHEN/The Star
The crowd checking out a scale model of The Zen project that is part of Parcel 3 of Penang World City in Bayan Mutiara. – Photos: GARY CHEN/The Star

 

Residential property sales improves, but overhang situation 

“The market is still soft, but things are improving following the strong economic growth in 2017,” Nordin(inset picture) told reporters after the launch of the Property Market Report 2017 here yesterday
“The market is still soft, but things are improving following the strong economic growth in 2017,” Nordin(inset picture) told reporters after the launch of the Property Market Report 2017 here yesterday

 

How good is property as an asset class today? - Business News 

 

Seeking viable options - Business News

 

Our cities should adopt '8-80' concept - Business News 

 Bringing smiles to house buyers

China buyers eyeing Penang property in growing tourism

https://youtu.be/olQaqTyb6qo
Worthy investment: Mah Sing sales executive Victor Cheah (left) introducing the M Vista project to visitors at StarProperty.my Fair in Queensbay Mall, Penang.

Visitors checking out MTT Properties & Development Sdn Bhd’s Botanica CT Centre during the StarProperty.my Fair in Queensbay Mall, Penang.

PENANG recently come under the radar of investors from China, said Property Talk principal Steven Cheah.

“It used to be Australia that attracted their interests, but now it is Penang. So, we can expect to see potential house buyers from China at the fair,” he said.

Cheah was speaking at the sideline of the StarProperty.my Fair 2018 which opened at Queensbay Mall yesterday and will end on Sunday.

He said the China investors were interested in high-rise properties near the sea priced at around RM1mil to RM2mil.

Cheah added that house buyers were now more selective due to higher interest rates.

“Most of them will be paying attention to the new launches in the southwest district and in Seberang Prai, where it is still possible to find properties priced below RM500,000,” he said.

Cheah said with the right location, good road connectivity, product type and concept, demand for properties in Penang would still be strong.

Potential house buyers checking out BinWan Development Sdn Bhd’s Gelugor Heights during StarProperty.my Fair in Queensbay Mall, Penang. Potential house buyers checking out BinWan Development Sdn Bhd’s Gelugor Heights during StarProperty.my Fair in Queensbay Mall, Penang.

“Malaysia’s strong fundamentals augur well for the outlook going forward.

“Malaysia’s population is young with an average age of 30 to 31 years old, and many people are still looking to start a family. This is a good sign for the property market.

“There will be weaknesses in between as the market is adjusting to the supply and demand situation.

“From the medium to long term perspective, property is still one of the choice investments preferred by investors,” he said.

Meanwhile, Yew Chor Hian, who hails from Kedah, said he was interested in a high-rise property priced at around RM600,000.

“I work in Bayan Baru, so I am interested to stay on the island.

Visitors renewing The Star newspaper subscription at The Star info counter at the fair.
Visitors renewing The Star newspaper subscription at The Star info counter at the fair.

“The size and location are important to me,” he added.

Australian Ray Stubb said he was looking for a high-rise condominium.

“We are interested in getting a unit near the sea,” he said.

A total of 17 exhibitors are displaying their products at the fair, of which 15 are developers.

The developers are SPNB Aspirasi Sdn Bhd, Mah Sing Group Bhd, Ewein Zenith Sdn Bhd, Iconic Land Sdn Bhd, Regata Maju Sdn Bhd, JKP Sdn Bhd, SP Setia Bhd, MTT Properties & Development, Galeri Tropika Sdn Bhd, Devoteshens Sdn Bhd, Binwan Development Sdn Bhd, Bertam Properties Sdn Bhd, Corfield Development Sdn Bhd, Penang Development Corporation and Pembangunan Rasa Sempurna Sdn Bhd.

The other two exhibitors are Property Talk, a Penang-based real estate agency, and East West One Marketing Sdn Bhd, which is an oil palm investment company.

The Star by David Tanby david Tan

Related News  

 

A place to thrive for millennials - Metro News

The crowd checking out a scale model of The Zen project that is part of Parcel 3 of Penang World City in Bayan Mutiara. – Photos: GARY CHEN/The Star
The crowd checking out a scale model of The Zen project that is part of Parcel 3 of Penang World City in Bayan Mutiara. – Photos: GARY CHEN/The Star

 

Residential property sales improves, but overhang situation 

“The market is still soft, but things are improving following the strong economic growth in 2017,” Nordin(inset picture) told reporters after the launch of the Property Market Report 2017 here yesterday
“The market is still soft, but things are improving following the strong economic growth in 2017,” Nordin(inset picture) told reporters after the launch of the Property Market Report 2017 here yesterday

How good is property as an asset class today? - Business News 

 

Seeking viable options - Business News

 

Our cities should adopt '8-80' concept - Business News 

 Bringing smiles to house buyers

Monday, April 9, 2018

MCA launches its general election manifesto - a plan for better future


https://youtu.be/e89SFhz_n2Q

KUALA LUMPUR: MCA has unveiled the party's manifesto for the general election, just some 12 hours after Prime Minister Datuk Seri Najib Tun Razak revealed Barisan Nasional's manifesto on Saturday (April 7) night.

Party president Datuk Seri Liow Tiong Lai outlined MCA's 10 promises and 10 initiatives for the next five years, which will complement Barisan's manifesto.

He said MCA will become the key driver of various initiatives targeting the masses with its main pillar being youth empowerment.

Liow also stressed on the party's commitment towards transforming MCA-established education institutions into a global education hub, the second pillar of MCA's 14th General Election manifesto.



"As MCA's roots still rest with the lower income groups, we must also continue to look after the well being of the people requiring assistance. This is the third pillar, social economic well-being.

"In order for this agenda to succeed, a multi-racial approach must be adopted to tackle various issues that confront the community.

"The party will continue to reach out to understand their needs through active stakeholder engagements," Liow said during the unveiling ceremony at Wisma MCA here on Sunday morning.

This is the first time MCA is having its own manifesto for the general election.

MCA's 10 promises are:

1. Safeguard moderation - Uphold the Federal Constitution and Rukun Negara

2. Ensure checks and balances - Represent the constitutional rights of Malaysian Chinese and other communities

3. Youth and women empowerment - New businesses, jobs and training opportunities - Appoint
youth and women into key positions - Reskilling youths for digital revolution

4. Enhance the quality of Chinese education - Committed towards recognising the Unified Examination Certificate (UEC) - Systematic approach in construction of new SJK(C)s and allocations

5. Setting forth education in the world stage - Modernise and globalise education through UTAR, TARUC and Vtar

6. Harnessing the Belt and Road Initiative - Connectivity with China and Asean - Open up trade opportunities in China

7. Digital economy and innovation - Help SMEs ride on wave of e-commerce

8. Quantum leap in business and finance - Establish the Kojadi Co-operative Bank - Enhance the functions of the Secretariat For the Advancement Of Malaysian Entrepreneurs (SAME)

9. Neo-urbanised townships - Transforming new villages

10. Accessible healthcare - Establish UTAR Hospital with Western and complementary medicine

MCA's 10 initiatives are: 
 

1. Establish a Central Monitoring Unit

- monitor fair and effective implementation of government policies

2. Global and regional connectivity

- MCA Belt and Road Centre to strengthen ties with China
- make Malaysia a gateway to China’s Belt and Road Initiative in Asean

3. Establish a Digital Economy and Innovation Council
- gather feedback for formulation of policies and legislation

4. World class tertiary education
- UTAR to set up teaching hospital in Kampar

5. Developing the next generation
- transform TARUC into full-fledged technical university

6. Technical and vocational education training
- expand Vtar Institute into a well-equipped TVET development and training institution

7. Wealth generation for SMEs and lower and middle income groups
- introduce an investment scheme for Malaysian Chinese

8. Neo-urbanised townships
- stimulate and modernise new villages

9. Protecting welfare of women, children and the elderly
- champion the progress of women in Malaysia
- help stateless Malaysians get citizenship
- ensure enforcement of legislation against paedophiles

10. Continue outreach services for the community through the:
- Public Services and Complaints Bureau
- Chang Ming Thien Foundation
- 1MCA Medical Foundation
- Legal Advisory and Women’s Aid Centre

A plan for better future

Manifesto aims to lessen burdens the community faces now


KUALA LUMPUR: The rising cost of living and the widening income gap are what the public is most concerned about these days, says Datuk Seri Liow Tiong Lai.

The MCA president said the urgency of the situation prompted MCA to come out with specific actions to address it in the next five years.

These actions are listed out in MCA’s 14th General Election Manifesto with 10 promises and 10 initiatives which the party must implement, he added.

Ready for battle: Liow, MCA deputy president Datuk Seri Dr Wee Ka Siong and other senior party leaders at the launch of the manifesto at Wisma MCA in Kuala Lumpur. — SAM THAM/The Star

“This also needs the support of the Government, including allocations for execution.

“The MCA’s performance in this election will have a direct impact on the party’s efforts to help the people,” Liow said when launching the manifesto at Wisma MCA here yesterday.

On GE14, Liow said voters aged between 21 and 35 made up 45% of total voters.

“The youth play an important role in the country’s economic development and democracy,” he said when outlining the manifesto, which focuses on steps to help the people, especially youth, to progress.

Full turnout: MCA members listening to Liow’s presentation of the manifesto for GE14 during the launch at the Wisma MCA in Kuala Lumpur.

It spans education, training, jobs, business and investment opportunities.

Saying that the MCA’s political struggle is for the long haul, Liow assured the people that the party would not make empty promises to fish for votes.

On that note, Liow said it was important to not only address current issues but also to create favourable conditions for the Chinese community’s youth to face new challenges.

“There will be major changes in the global economy, labour market and business.

“The digital revolution will not only encourage the growth of a new economy but also change the lifestyle of future generations.

“The youth of today will dominate in this major change,” he said.

Saying that education is the foundation of every nation, he pointed out that the 69-year-old MCA’s role in the sector has evolved to meet changing times, from pre-school to primary school, vocational training to tertiary education.

Liow and MCA deputy president Datuk Seri Dr Wee Ka Siong (left) with the manifesto booklet.

Singling out the party’s 16-year-old Universiti Tunku Abdul Rahman (UTAR), which is ranked second in Malaysia after Universiti Malaya by Times Higher Education, he said it is in the process of setting up its teaching hospital in Kampar, Perak.

“UTAR Hospital is set to be a premier healthcare institution that combines modern and complementary medicine like traditional Chinese medicine and Ayurveda,” he said of the party’s promise to provide accessible and quality healthcare to the rakyat.

In confronting global competition and pressure from the rising cost of living, Liow said MCA promises to open up more economic opportunities, including setting up Kojadi Co-operative Bank with branches in various states to provide financing for young entrepreneurs and small to medium enterprises.

“Times have changed. While we face more challenges, we also encounter more development opportunities,” he said of how the party consistently works hard to help the community brave the changing times.

On the country’s 465 new villages set up by the British colonial government with MCA’s help during the Emergency (1948-1960) to cut contacts between the Chinese community and communists of the era, Liow said those “barbed-wire” settlements have evolved over the decades.

He said MCA has drawn up plans for a digital revolution in these villages to rejuvenate them.



Sources: The Star, by foong pek yee, tho xin yi, and royce tan

MCA launches its general election manifesto - a plan for better future


https://youtu.be/e89SFhz_n2Q

KUALA LUMPUR: MCA has unveiled the party's manifesto for the general election, just some 12 hours after Prime Minister Datuk Seri Najib Tun Razak revealed Barisan Nasional's manifesto on Saturday (April 7) night.

Party president Datuk Seri Liow Tiong Lai outlined MCA's 10 promises and 10 initiatives for the next five years, which will complement Barisan's manifesto.

He said MCA will become the key driver of various initiatives targeting the masses with its main pillar being youth empowerment.

Liow also stressed on the party's commitment towards transforming MCA-established education institutions into a global education hub, the second pillar of MCA's 14th General Election manifesto.



"As MCA's roots still rest with the lower income groups, we must also continue to look after the well being of the people requiring assistance. This is the third pillar, social economic well-being.

"In order for this agenda to succeed, a multi-racial approach must be adopted to tackle various issues that confront the community.

"The party will continue to reach out to understand their needs through active stakeholder engagements," Liow said during the unveiling ceremony at Wisma MCA here on Sunday morning.

This is the first time MCA is having its own manifesto for the general election.

MCA's 10 promises are:

1. Safeguard moderation - Uphold the Federal Constitution and Rukun Negara

2. Ensure checks and balances - Represent the constitutional rights of Malaysian Chinese and other communities

3. Youth and women empowerment - New businesses, jobs and training opportunities - Appoint
youth and women into key positions - Reskilling youths for digital revolution

4. Enhance the quality of Chinese education - Committed towards recognising the Unified Examination Certificate (UEC) - Systematic approach in construction of new SJK(C)s and allocations

5. Setting forth education in the world stage - Modernise and globalise education through UTAR, TARUC and Vtar

6. Harnessing the Belt and Road Initiative - Connectivity with China and Asean - Open up trade opportunities in China

7. Digital economy and innovation - Help SMEs ride on wave of e-commerce

8. Quantum leap in business and finance - Establish the Kojadi Co-operative Bank - Enhance the functions of the Secretariat For the Advancement Of Malaysian Entrepreneurs (SAME)

9. Neo-urbanised townships - Transforming new villages

10. Accessible healthcare - Establish UTAR Hospital with Western and complementary medicine

MCA's 10 initiatives are: 
 

1. Establish a Central Monitoring Unit

- monitor fair and effective implementation of government policies

2. Global and regional connectivity

- MCA Belt and Road Centre to strengthen ties with China
- make Malaysia a gateway to China’s Belt and Road Initiative in Asean

3. Establish a Digital Economy and Innovation Council
- gather feedback for formulation of policies and legislation

4. World class tertiary education
- UTAR to set up teaching hospital in Kampar

5. Developing the next generation
- transform TARUC into full-fledged technical university

6. Technical and vocational education training
- expand Vtar Institute into a well-equipped TVET development and training institution

7. Wealth generation for SMEs and lower and middle income groups
- introduce an investment scheme for Malaysian Chinese

8. Neo-urbanised townships
- stimulate and modernise new villages

9. Protecting welfare of women, children and the elderly
- champion the progress of women in Malaysia
- help stateless Malaysians get citizenship
- ensure enforcement of legislation against paedophiles

10. Continue outreach services for the community through the:
- Public Services and Complaints Bureau
- Chang Ming Thien Foundation
- 1MCA Medical Foundation
- Legal Advisory and Women’s Aid Centre

A plan for better future

Manifesto aims to lessen burdens the community faces now


KUALA LUMPUR: The rising cost of living and the widening income gap are what the public is most concerned about these days, says Datuk Seri Liow Tiong Lai.

The MCA president said the urgency of the situation prompted MCA to come out with specific actions to address it in the next five years.

These actions are listed out in MCA’s 14th General Election Manifesto with 10 promises and 10 initiatives which the party must implement, he added.

Ready for battle: Liow, MCA deputy president Datuk Seri Dr Wee Ka Siong and other senior party leaders at the launch of the manifesto at Wisma MCA in Kuala Lumpur. — SAM THAM/The Star

“This also needs the support of the Government, including allocations for execution.

“The MCA’s performance in this election will have a direct impact on the party’s efforts to help the people,” Liow said when launching the manifesto at Wisma MCA here yesterday.

On GE14, Liow said voters aged between 21 and 35 made up 45% of total voters.

“The youth play an important role in the country’s economic development and democracy,” he said when outlining the manifesto, which focuses on steps to help the people, especially youth, to progress.

Full turnout: MCA members listening to Liow’s presentation of the manifesto for GE14 during the launch at the Wisma MCA in Kuala Lumpur.

It spans education, training, jobs, business and investment opportunities.

Saying that the MCA’s political struggle is for the long haul, Liow assured the people that the party would not make empty promises to fish for votes.

On that note, Liow said it was important to not only address current issues but also to create favourable conditions for the Chinese community’s youth to face new challenges.

“There will be major changes in the global economy, labour market and business.

“The digital revolution will not only encourage the growth of a new economy but also change the lifestyle of future generations.

“The youth of today will dominate in this major change,” he said.

Saying that education is the foundation of every nation, he pointed out that the 69-year-old MCA’s role in the sector has evolved to meet changing times, from pre-school to primary school, vocational training to tertiary education.

Liow and MCA deputy president Datuk Seri Dr Wee Ka Siong (left) with the manifesto booklet.

Singling out the party’s 16-year-old Universiti Tunku Abdul Rahman (UTAR), which is ranked second in Malaysia after Universiti Malaya by Times Higher Education, he said it is in the process of setting up its teaching hospital in Kampar, Perak.

“UTAR Hospital is set to be a premier healthcare institution that combines modern and complementary medicine like traditional Chinese medicine and Ayurveda,” he said of the party’s promise to provide accessible and quality healthcare to the rakyat.

In confronting global competition and pressure from the rising cost of living, Liow said MCA promises to open up more economic opportunities, including setting up Kojadi Co-operative Bank with branches in various states to provide financing for young entrepreneurs and small to medium enterprises.

“Times have changed. While we face more challenges, we also encounter more development opportunities,” he said of how the party consistently works hard to help the community brave the changing times.

On the country’s 465 new villages set up by the British colonial government with MCA’s help during the Emergency (1948-1960) to cut contacts between the Chinese community and communists of the era, Liow said those “barbed-wire” settlements have evolved over the decades.

He said MCA has drawn up plans for a digital revolution in these villages to rejuvenate them.



Sources: The Star, by foong pek yee, tho xin yi, and royce tan

Sunday, April 8, 2018

Trapped in US-China trade war when 2 elephantine economices fight ...

Tit for tat: The trade scuffle between US and China threatened to escalate to a full-scale war when Beijing fired back with punitive taxes on a wide range of US goods entering China - Reuters

The dispute between the two countries is real and has escalated. Malaysia is feeling the heat, but its palm oil sector is set to shine in this conflict.

THE US-China trade war drummed up by Washington last month threatened to escalate to a fullscale confrontation when Beijing fired back last week with punitive taxes on a wide range of US goods entering China.

And Malaysia, being an open economy with huge exports to China and the United States, is feeling the heat of the tit-for-tat measures rolled out by the two largest economies in the world.

President Donald Trump has given several reasons to act against China. A key reason is trade imbalance and US large trade deficit, which he attributed to China.

In 2017, China exported US$505bil (RM1.95 trillion) in goods to the United States, which in turn exported US$135bil (RM522.4bil) in goods to China.

The Trump administration has also alleged that China sought to misappropriate US intellectual property through joint venture requirements, unfair technology licensing rules, purchases of US technology firms with state funding and outright theft.

Last month, Trump slapped Beijing with punishing tariffs on the import of steel and aluminium products, and warned that there would be higher taxes on about 1,300 Chinese products worth US$50bil (RM193.5bil). China, which has often stated that it does not want a trade war as it would hurt all, retaliated last Monday by imposing additional duties of 15% to 25% on 128 US products worth up to US$3bil (RM11.6bil). Pork, recycled aluminium, steel pipes, wine and fruits are on the list.

After being criticised by its own elites that it was too soft in its retaliation, China’s State Council announced on Wednesday that it planned to impose additional tariffs of 25% on 106 US products into the country, including soybeans, aircraft and cars. The import value of the goods on the list in 2017 was US$50bil.

Beijing’s Wednesday response came soon after the US Trade Representative Office released details of 1,333 Chinese imports worth about US$50bil that it planned to hit with 25% tariffs, with emphasis on industrial and hi-tech goods.

Global Times, the official mouthpiece of the Communist Party of China (CPC), said in an editorial on Wednesday before its State Council’s statement: “China’s countermeasures should deal a heavy blow, hitting what the United States fears most. We strongly recommend starting with US soybeans and corn products. The ruling GOP will pay a huge price.”

It noted that nervous US soybean farmers, who were big supporters of Trump during the presidential campaign in 2016, had run advertisements to oppose launching a trade war against China.

China’s former finance minister Lou Jiwei reportedly said at a recent forum: “If I were in the government, I would hit soybeans first, and then cars and planes.”

By imposing punishing tariffs on US soybeans, Beijing will hurt US major farmers, given that China was the second largest importer of US agricultural products last year, buying US$19.6bil (RM73.5bil) of goods with 63% spent on soybeans.

As reducing US soybean imports would leave a shortfall for Chinese edible oil consumption and animal feed, this would need to be filled by imports from other countries. One source could be palm oil from Malaysia.

“Malaysia’s palm oil growers would stand to enjoy a windfall gain if China reduces the intake of soybeans from the United States, though our competitors like Indonesia also hope to sell more to China,” says economist Lee Heng Guie, executive director of SocioEconomic Research Centre (SERC).

In fact, the futures contracts of Malaysian crude palm oil (CPO) rose on Wednesday after China’s announcement. The positive impact on CPO prices continued on Thursday.

However, the local stock market – like other markets in the region – plummeted, as many investors believed more tit-for-tat measures covering more industries would be unveiled in this spat. The FBM KLCI lost 1.88% to close at its nineweek low of 1,815.94 points.

The local stock market has been weakening due to fear of this trade war. The technology stocks are particularly jittery as the US tariffs are seen as targeting mainly the Chinese electrical and electronic (E&E) and machinery sectors.

“In our view, the sectors that could be affected by the US-China trade war due to recently proposed import tariffs are semiconductors, building materials and ports in Malaysia,” said CIMB Research in a report on Thursday.

As Malaysia exports many E&E products and parts to China, local players within this supply chain are likely to feel the heat.

“We estimate Malaysia’s ultimate exposure to the United States – including via intermediate goods to China for assembly into final products destined for the United States – at 10% of GDP, about half of which is in electronics products,” Nomura Research says, adding that another 8% is exposed to China’s final demand.

While exports to China account for 13.5% of total annual exports of Malaysia, exports to the United

States make up 9.5%. And E&E products form the biggest export item to both countries.

Nomura sees US trade protectionism and a sharper-than-expected slowdown in China as posing risks to the Malaysian economy, as exports account for 71% of its GDP.

This trade conflict has been listed by Moody’s as a global risk this year.

Consultancy Oxford Economics says the escalation of the trade war could knock 0.5% off global growth in 2019.

Although earlier this year many analysts and business groups in the United States had warned that Washington would not win in this trade war, Trump charged ahead nevertheless.

The modern and economically mighty China, under President Xi Jinping, will punch back decisively and swiftly, many have warned.

The pain points of China are not easy to find. Over a decade ago, Beijing had realised it could not rely on the low value-adding export processing industries.

The country is now focusing on developing its high-technology sector and expanding the domestic consumer market to cut down on reliance on exports.

With so many odds against America, why would Trump insist on taking on China?

According to an analysis by Hong Kong-based International Chinese Newsweekly, the rise of American nationalism and Trump’s gearing up for the mid-term elections is the key reason for the president’s plunge into a trade war.

His focus is on midterm elections and keeping a Republican majority in Senate and Congress. But he will have to deal with the possible backlash from the first round of USChina trade war once it goes full on.

Apart from the soybean sector, the United States’ aircraft and automobile sectors will be hit.

According to South China Morning Post, Boeing Corporation delivered 202 planes to China in 2017, or 26% of its global total. The company has projected that in the next 20 years, China will need 7,240 new planes valued at about US$1.1 trillion (RM4.26 trillion).

On the auto sector, the United States sold more than US$10bil (RM38.7bil) worth of vehicles to China. Last year, General Motors sold 3.9 million cars to China, or almost 39% of its global total. The company expects sales in China to grow to five million by 2020.

The Hong Kong newspaper also warned that if China discourages its nationals from visiting the United States, the impact on US tourism will be painful.

In 2016, three million Chinese visitors and students spent US$33bil (RM127.7bil) while in the United States. The US Department of Commerce expects Chinese visitors rise to 5.7 million by 2021.

The other weapon China could weild against Washington is off-loading its US treasury bonds. This will have an impact on the dollar and US interest rate.

Bejing’s holding of US treasury bonds was close to US$1.2 trillion (RM4.6 trillion) at end-2017.

How long the current trade tension will last is anybody’s guess, given Trump’s unpredictable character. The world still remembers that he showered Xi with praises before turning his back on China.

But one thing is certain: if US protectionism and the trade war escalates, it will hurt not only the two major economies, but also countries which have trade links with the two powers.

“The global repercussions will be highly disruptive and damaging on trade and economy if the US-China trade war deepens and impacts more products and countries. In such widespread trade conflicts, Malaysia’s trade will be significantly dampened,” says Lee from SERC.

By Ho Wah Foon The Star

When 2 elephantine economies fight... 

Upping the stakes: Trump has ordered his administration to consider imposing tariffs on an additional US100bil of Chinese imports. Chinese President Xi Jinping had earlier hit back with US50bil worth of tariffs on US imports.

Will Malaysia be caught in the middle?


The trade war between the world’s two largest economies is not showing any sign of stopping just yet.

US president Donald Trump initiated the trade confrontation by announcing additional 25% tariffs on Chinese imports worth US$50bil, citing China’s unfair trade advantage. In retaliation, China initially announced higher tariffs on US$3bil imports from the US, but later raised it to US$50bil.

Now, Trump has ordered his administration to consider imposing tariffs on an additional US$100bil of Chinese imports.

While it remains to be seen whether these tit-for-tat announcements will materialise or eventually fizzle out, economists and fund managers generally agree that the US-China trade fight will affect Malaysia’s local industries and several stocks on Bursa Malaysia.

However, they differ on the extent of the impct from the escalating trade war.

In an email interview with StarBizWeek, Asian Strategy and Leadership Institute research and business development director Lau Zheng Zhou says that Malaysia will be hit with losses in trade opportunities, as both the US and China constitute 25% of Malaysia’s total trade.

He points out that investors may adopt a “wait-and-see” approach, which could cause certain sectors to slow down and hence disrupt manufacturers’ resource planning and projection.

“As opposed to exporting finished goods, Malaysian exports have footprints along an extensive supply chains across sectors in Asia such as automobiles, electronics, oil and gas, and machinery.

“With heavy tariffs being imposed by the US, Malaysian firms will be slapped with rising input costs and therefore falling demand for their value-added component products.

“Our logistics sector may also be affected if global trade slows down.

“But China’s tariffs imposed on the US may not directly impact Malaysia as it is strategically designed to cause damage to the US agricultural producers,” he says.

On the other hand, Malayan Banking Bhd group chief economist Suhaimi Ilias indicates that the potential impact from the US-China trade spat is small, or only 0.3% of total trade value, at this juncture

However, greater risks could arise if the additional tariffs spill into services trade and investment.

“In any case, US tariffs on solar panels, steel and aluminum will have some impact on Malaysia but we understand that the International Trade and Industry Ministry is seeking exemptions for these since Malaysia is in talk with the US on the Trade and Investment Framework Agreement (TIFA) as an alternative following the US pulling out of the Trans-Pacific Partnership.

“Meanwhile, China’s tariffs on US products may result in some trade diversions or substitutions that may result in increase demand for Malaysian products from China, and one potential area is chemical or petrochemical products which is a major industry and export for Malaysia,” states Suhaimi.

Currently, the Trump administration has proposed a long list of 1,333 items, which would see the imposition of an additional 25% tariff.

These items include robotics, aircraft seats, machine parts, semiconductors, communication satellites and television components, among others.

It is worth noting that there will be 60 days of public review before the tariffs take effect. Observers believe both China and the US will re-negotiate their trade terms during this period in order to prevent a full-fledged trade war.

More items affected

In the event of the US government imposing tariffs on the additional US$100bil worth of Chinese imports as per Trump’s suggestion, more items will be affected.

China, on its part, has announced that it will slap a similar 25% additional tariff on 106 products from the US, which include soybean, automobiles, chemicals and aircraft.

According to Lau, China’s tariffs are well-targeted to hurt rural, agriculture-dependent communities who were big supporters of Trump during the 2016 presidential election.

Many companies in Malaysia have been involved in the export of raw materials and intermediate goods to China and the US, which are later re-packaged or used in the production of other finished goods.

These finished goods, in turn, are exported by both China and the US to one another as well as to other countries.

Indirectly, the Sino-US trade spat will affect these exporting companies from Malaysia.

Suhaimi calls for accommodative monetary policy and the implementations of major investment and infrastructure projects to buttress Malaysia’s economic activities, if the trade dispute continues to worsen.

Fund managers’ take

Fortress Capital chief executive officer Thomas Yong says that the Malaysian semiconductor sector will be most negatively affected due to the trade spat.

“This is because most semiconductor companies in Malaysia export intermediate semi-conductor components to end-product manufactures in the US, and a tariff on these end-products could indirectly lower the demand from these component players,” he says.

He cautions investors to monitor the ongoing trade war between the US and China closely.

“If the tariffs are implemented, the impact will be very detrimental to the ongoing global growth recovery.

“A trade war will negatively affect stock valuations all around the world,” he says.

Similar to Yong’s perspective, Areca Capital chief executive officer Danny Wong also reckons that export-based Malaysian businesses in the electrical and electronics domain could be affected, especially if their exposure to both China and the US is significantly large.

However, both fund managers believe that the Sino-US trade spat may not be entirely bad for companies in Malaysia.

Wong tells StarBizWeek that the US’ Federal Reserve (Fed) may take necessary actions to remedy any unwarranted implications to the economy.

“If the trade war continues to prolong and ultimately weigh down global growth and trade, it could affect the Fed’s future actions.

“Hence, there is a likelihood for the Fed to put the expected interest rate hikes on hold.

“In the event of such decision, dividend stocks in Bursa Malaysia will definitely benefit.

“On top of that, the real estate investment trust (REIT) stocks will also benefit from the situation, as Reits thrive in the low interest rate environment,” he says.

Meanwhile, Fortress Capital’s Yong adds that stocks related to palm oil production may also benefit from the trade spat.

“Since crude palm oil (CPO) is a substitute for soybean oil, the Chinese tariff on American soybeans can potentially allow China to substitute to CPO to meet their vegetable oil consumption needs, in turn supporting the demand and prices for CPO.

“As Malaysia and Indonesia both account for more than 80% of global palm oil supply, oil plantation companies from these two countries could potentially benefit from the much needed price boost amid the current soft CPO price.

“However, it remains uncertain if China will substitute all of the current soybean oil consumption to CPO, as there are quite a number of other vegetable oils available in the market,” he says.

Earlier, StarBiz reported that the American Malaysian Chamber of Commerce (Amcham) believes Malaysia may see an increased amount of foreign investments, particularly from the US, if the brewing trade war between the US and China escalates further.

Businesses from the US and other countries could make Malaysia an alternative regional production hub for several goods instead of China, to avoid the additional tariffs imposed by the US on products imported from China.

The additional 25% tariff levied on the imports from China would likely make Chinese goods pricier. Under such circumstances, global manufacturers may opt to establish their operations in Malaysia or outsource their production to a domestic company.

Commenting on whether the Sino-US trade war will place Malaysia as an alternative to China in the eyes of investors, Lau says it is not reasonable for investors to do so.

“However, the trade spat may rather increase foreign direct investments, especially from China, in industries with heavy use of steel and aluminium or value-added manufacturing of innovative consumer products.

“This can avoid a ban, restrictions or high tariffs on products which are associated with China,” he says.

By Ganeshwaran Kana The Star


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Lost cause: An employee arranging imported American apples for sale at a grocery store in Beijing, President Donald Trump says the US lost a trade war with China ‘years ago’. In a tweet Wednesday after China announced a list of US products that might be subject to a 25 tariff, Trump said: ‘We are not in a trade war with China, that war was lost many years ago by the foolish, or incompetent, people who represented the US.’ — Bloomberg
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