Shangri-La Dialogue proves unfairly dominated by Washington, regional harsh accusations

The Shangri-La Dialogue (SLD), held annually in Singapore, is a security forum where Western, especially US discourse power has the upper hand. It's not, as the West claimed, timed to deal with security anxieties ratcheted up in the Asia-Pacific region, but a platform to sell US security doctrines that are positively portrayed as "contributing to regional stability."

Throughout these years, three terms have been used over and over to describe China's defense policy at the dialogue, among which "uncertain" is the lightest one. In recent times, China has been increasingly accused of being "aggressive" or "bullying" others. The SLD, which is actually led by the US, offers a platform to communicate with Beijing while pressuring it.

Another purpose of the SLD is to coordinate relations among US allies. At the SLD over last weekend, US Defense Secretary Chuck Hagel rallied defense ministers from Japan and South Korea to hold a trilateral meeting despite strained relationship between Seoul and Tokyo.

Tempers frayed unprecedentedly at this year's SLD, as Japan and the US ganged up to antagonize China. The keynote address delivered by Japanese Prime Minister Shinzo Abe was a barrage against China and its recent behavior in the East China Sea and South China Sea disputes.

Abe emphasized the importance of international law to resolve or at least manage disputes. He also pledged Japan would play an "even greater and more proactive role" with stronger defense ties to Southeast Asia, including an offer to provide patrol boats to the Philippines and Vietnam.

In a subsequent address next morning, US Defense Secretary Chuck Hagel endorsed Abe's speech and unleashed a rhetorical fusillade on China.

The rhetoric from Tokyo and Washington only reinforced both countries' anxieties over China's growing might.

It's not difficult to pick out logical loopholes from Abe's elaborate speech. He clamored for respect for international law, but the prime minister's ambition to enshrine collective self-defense is a violation of Japan's pacifist constitution. How can we expect a man who disregards domestic law to respect international law?

Japan promised to enhance its security role in Southeast Asia. But how can its Self-Defense Forces still be called this if they stretch into Southeast Asia?

The clumsy attacks against China didn't score much resonance from the Southeast Asian contingent, the most important audience at Shangri-La.

Vietnam and the Philippines acted rather constrainedly in Singapore. And after Hagel's speech, a professor from Indonesia asked the defense secretary whether the US is contradicting itself by opposing one single country, implicitly China, dominating East Asia while the US itself pursues a dominant role. But Hagel evaded giving a direct answer.

The tone of this SLD was set during Abe's keynote speech. The Chinese delegation were duly incensed and forced to return fire.

Wang Guanzhong, deputy chief of the General Staff of the PLA, accused Abe and Hagel of sticking to each other targeting China, departing from the speech he had prepared for the dialogue. The Chinese side went toe-to-toe with Washington and Tokyo.

In its move from being a reluctant participant in the SLD, China now engages actively in the security forum.

This year, the sizeable contingent from China includes military representatives, scholars, media persons and a diplomatic delegation led by Fu Ying, chairperson of the Foreign Affairs Committee of China's National People's Congress.

The primary goal of the Chinese delegation was to advocate and elaborate a new security concept for Asia. Nonetheless, we were kidnapped by the crude Western accusations and forced into a defensive battle.

In recent years, there are soaring attacks against China at the SLD, a West-dominated platform.

China should prepare itself for provocations and respond in a more wise and humorous way. There is no need to be led by the nose by the Western countries.

More importantly, we should cultivate and expand the clout of multilateral platforms where China can have a bigger say, such as the Conference on Interaction and Confidence Building Measures in Asia and the World Peace Forum.

Sources: The article was compiled by Global Times reporter Yu Jincui with Jin Canrong, associate dean of the School of International Studies, Renmin University of China. yujincui@globaltimes.com.cn

Regional harsh accusations overshadow Shangri-La talks

Perhaps the number "13" is unlucky after all. For, over this weekend, the 13th Shangri-La Dialogue (SLD), the premier Asia-Pacific security forum held annually in Singapore, was unfortunately shrouded in a thicket of almost tangible tension.

The first salvo was launched by none other than the increasingly controversial Japanese Prime Minister Shinzo Abe. During his keynote speech at SLD opening dinner, Abe made a thinly veiled accusation that China upset the status quo in the East China Sea by threat of force.

Abe talked about the need to change the country's legal basis, a reference to the amendment of Japan's pacifist constitution, to enable it to take part in "collective self-defense." But amiss in Abe's extensive description of the "new Japanese" concept was any mention of Japan's militaristic past which still casts a dark pall over many of its victimized neighbors.

The next morning, as if in sync, US secretary of defense Chuck Hagel wasted no time in his keynote speech to directly confront China by accusing the latter of unilaterally altering the status quo in the South China Sea.

Hagel followed up by officially stating the US disapproval of China's setting up of an Air Defense Identification Zone in the East China Sea. Echoing Abe, Hagel agreed with the need to amend the Japanese constitution, and even mooted the reassessment of their joint defense treaty.

The unusually blunt and strident US posture during this year's SLD startled many observers. But a careful examination of the recent chain of events both regionally and worldwide may provide some clues as to Hagel's tough tone.

A rapidly emergent China, with its attendant rising confidence in tackling foreign and regional matters, almost inevitably gave rise to the perception among some US policymakers that the hitherto more or less unchallenged regional leadership of the US in the Asia-Pacific region was being increasingly sapped.

This resulted in the US urgency to reassert its preeminent role in at least the security matters of the region. Hence the notions of "pivoting" and "rebalancing" rang aloud in US rhetoric versus this region. This sense of acute leadership reinstatement is further exacerbated by recent US foreign policy fiascos around the world.

The Edward Snowden-revealed US blatant spying on foes and allies alike continued to gnaw at global US credibility and moral standing. US President Barack Obama's own threat of use of force to resolve the Syrian civil war was essentially upstaged by a last-minute Russian brokered deal to avert imminent attack.

Yet the Chinese responded to these seemingly joint attacks with a two-pronged approach. The more genteel response was delivered by its former vice foreign minister Fu Ying, who reassured the region of China's peaceful intension and long-standing contribution to regional security.

The more head-on response came in the form of off-the-cuff remarks Wang Guanzhong, deputy chief of the General Staff of the PLA, who characterized both Abe and Hagel's speeches as being provocative to China.

Nevertheless, it should be mentioned that the general mood among many of the SLD participants from regional neighbors was such that while potential Japanese remilitarization and the return of US hegemony in the region were certainly not welcome, a certain perception of increasing Chinese assertiveness in the region, rightly or otherwise, was also taking root. China needs to redouble its efforts in assuring its neighbors of its purported peaceful rise.

But despite their confrontational postures, both Wang and Hagel made ample mentions of various ongoing and perspective security cooperation mechanisms between the US and China, giving the impression that their "new type of major power relationship" could still hold up despite stark differences.

In addition, Abe, Hagel and Wang variously gave high praises for the important roles in regional security played by East Asian Summit, ASEAN Regional Forum as well as ASEAN Defense Ministers' Meeting-Plus.

It is in this sense that despite the dense and serious mood permeating this year's SLD, a glimmer of hope can still be gleaned.

Contributed by Ei Sun Oh Source:Global Times Published: 2014-6-3 19:38:01
The author is a senior fellow with the S. Rajaratnam School of International Studies, Nanyang Technological University, Singapore. opinion@globaltimes.com.cn

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China's sovereignty, sovereign rights and jurisdiction in the South China Sea were established through the long process of historical development, said Wang Guanzhong, deputy chief of general staff of the People's Liberation Army (PLA), at the 13th Shangri-La Dialogue..

It can be traced back to over 2,000 years ago, or the Han Dynasty, when China started discovering and gradually maturing its administration over the South China Sea, especially the Nansha Islands and related sea area, Wang said..

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China, as a signatory country to the United Nations Convention on the Law of the Sea (UNCLOS), respects the convention which took effect in 1994. However, Wang said, China's sovereignty, sovereign rights and jurisdiction over the South China Sea islands and islets as well as related sea waters came into being over the past 2,000 years..

The UNCLOS, which took effect in 1994, cannot re-demarcate sovereignty, sovereign rights and jurisdiction that came into being over such a prolonged period of time in history, while recognizing countries' historical rights over seas and islands and islets, Wang said..

The UNCLOS is inapplicable to the adjustment of ownership of sea islands and islets, he said. The law governing the sea is an enormous and comprehensive law system, not merely a single UNCLOS..

Meanwhile, the adjustment is also not merely subject to a single international law of sea -- there is an enormous international law system which includes the international law of sea, he said. Thus, only using the UNCLOS to argue is not workable, he said..

China has signed the UNCLOS and respects it, but the United States has not signed the convention because it feels many provisions of the convention are against it, he said..

Wang noted China's stance in this regard is coherent and clear, that is, China advocates solving the disputes over islands and maritime demarcation through direct consultations and talks with the directly-involved parties..

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China heaps scorn on Abe remarks to boost US alliance (against China)

Washington (AsiaNews/Agencies) - Japan's new Prime Minister Shinzo Abe is in the United States to forge a new and closer alliance with the Unit States in opposition to China. Elected in December, the hawkish Abe arrived in Washington yesterday. Today he is scheduled to meet US President Barack Obama. The timing of the visit is not accidental, given rising tensions with China over a group of islands and North Korea's ever-dangerous threats

.In an interview with a US paper ahead of his trip, Abe voiced hope that the US alliance - and the presence of 47,000 American troops on Japanese soil under a security treaty - would send a message to China. "It is important for us to have them recognise that it is impossible to try to get their way by coercion or intimidation," Abe explained.



VIDEO: CHINA REJECTS ABE’S ACCUSATIONS CCTV News - CNTV English

 The Chinese foreign ministry on Friday continued to slam Japanese Prime Minister Shinzo Abe, who pointed the finger at China on a slate of domestic issues during an interview prior to his visit to the US.

The ministry accused Japan of playing up the "China threat" with ulterior motives.

"China is strongly dissatisfied with the Japanese leader's comments that distort facts, attack and defame China and stir up confrontations between the two countries," Hong Lei, spokesman for the foreign ministry, told a press briefing.

Hong's comments followed others from Thursday and came in response to Abe's accusations, which claimed China had a "deeply ingrained" need to spar with Japan and neighboring countries to "maintain domestic support," according to the Washington Post.

Echoing the Chinese side's requirement for immediate clarifications, Japanese Chief Cabinet Secretary Yoshihide Suga explained Friday that the newspaper misquoted Abe's remarks and had caused a misunderstanding.

Suga said the prime minister has repeatedly emphasized the Japan-China relationship and would push forward strategic and mutually beneficial relations.

Despite the explanation, the transcript of the exclusive interview published by the Washington Post on Thursday showed that the hawkish Japanese leader lambasted China's political and education systems among other issues.

During the interview, Abe said that under the one-party rule of the Communist Party and having introduced a market economy, China needs to maintain high economic growth by seeking resources through coercion or intimidation while teaching patriotism mirroring an "anti-Japanese sentiment."

"Obviously, Abe tries to tarnish China's image in the international community and hype up the 'China threat' before talks with Obama in order to win US sympathy and support," Lü Yaodong, a researcher of Japanese politics at the Chinese Academy of Social Sciences, told the Global Times Friday.

Hong said that only Chinese people have the right to speak about whether China's political system and development strategy are suitable.

"Only those with political bias and ulterior motives would maliciously interpret and blame them," he noted.

Huang Dahui, director of the Center for East Asia Studies at the Renmin University of China, told the Global Times that this reflected the "value-oriented" diplomacy Abe has been adopting to "flatter" the US, adding that the hawkish Japanese leader has also stressed propaganda throughout his political career.

Abe was scheduled to meet Obama on Friday. During a press conference on Thursday, White House Deputy National Security Advisor Ben Rhodes said the meeting is a "further symbol of the President's commitment to the US-Japan alliance as a cornerstone of US economic and security policy, and as a cornerstone of the US-Asia policy."

Danny Russel, senior director for Asia at the National Security Council, said the two leaders are expected to discuss maritime security issues and territorial claims both in the East China Sea and the South China Sea.

In his interview with the Washington Post, Abe also warned that without changing its current policy, China would lose the confidence of the international community, which will result in a loss of foreign investment.

"The logic is ridiculous. It is Japan that has stirred up provocation by 'nationalizing' the Diaoyu Islands. It should rethink its own policies," said Lü.

Regarding such remarks, Russel said Obama would listen to Abe's assessment and views on the current situation in the East China Sea and the consultations between Tokyo and Beijing. He added that the US opposition to coercive actions or unilateral steps threatening the stability of the region has been "clear."

A commentary carried by the Xinhua News Agency on Friday said the US should not be "hijacked" by Japan over the territorial dispute with China, as the US support for Japan on this issue "would not only damage Washington's credibility as a constructive superpower, but also as an important partner of China on many pressing global issues."

Huang said in terms of China-related issues, the US would show its support to Japan as an ally, but would not be led by Japan to sacrifice the China-US relationship.

Sources: AsiaNews.it/Global Times

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British banking giant HSBC agreed to pay a record $1.92 billion settlement Tuesday after a broad investigation by U.S. federal and state authorities found the bank violated federal laws by laundering money from Mexican drug trafficking and processing banned transactions on behalf of Iran, Libya, Sudan and Burma

HSBC has agreed to pay $1.92 billion to settle a US money laundering probe. The British bank is alleged to have allowed clients with links to drug trafficking and terrorism to move money. 

The two sides reached a $1.92 billion (1.48 billion euros) settlement Tuesday, HSBC said.

"HSBC has reached an agreement with the United States authorities in relation to investigations regarding inadequate compliance with anti-money laundering and sanction laws," the bank said in a statement.

The settlement includes a five-year deferred prosecution agreement with the US Justice Department, which allows a subject under investigation to avoid prosecution if it meets conditions, such as paying fines.

Prosecutors had accused HSBC of allowing improper financial transfers from countries including Mexico, Iran and Saudi Arabia by clients linked to international crime, including drug trafficking and terrorism.

The bank apologized soon after, and acknowledged the firm lacked controls to prevent money laundering.

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"We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again," said group chief executive Stuart Gulliver in a statement.

"We are committed to protecting the integrity of the global financial system. To this end we will continue to work closely with governments and regulators around the world," Gulliver said.

HSBC's announcement comes one day after another British bank, Standard Chartered, agreed to pay some $327 million (253 million euros) to settle charges it violated US sanctions by channelling money to clients in Iran and Sudan.

dr/msh (AFP, dpa, AP)

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The leaders of Asean have succeeded in persuading their top trading partners to start negotiations on the Regional Comprehensive Economic Partnership (RCEP) to create the world’s largest trading bloc.

Cambodian Prime Minister Hun Sen formally launched the negotiations on the RCEP during the Asean Summit and Related Summits yesterday at a meeting at the Peace Palace in the western part of Phnom Penh.

The leaders of the 10-member regional grouping and their six major trading partners agreed to create a trading bloc that will comprise more than three billion people and with a combined GDP of US$15 trillion, roughly equal to that of the US.

Asean also launched the US-Asean Expanded Economic Engagement initiative, aimed at expanding trade and investment ties with the US and smoothing a path for the Trans-Pacific Partnership.

Trade Minister Gita Wirjawan said that plans for the RCEP would be welcomed by world leaders from Australia, India and the US as an amazing tool of economic integration that might become the benchmark for other regions.

“The spirit is not that of a zero-sum game. The economic integration of other regions is complementary to the economic integration among [Asean] member countries,” Wirjawan told The Jakarta Post on the sidelines of the event.

“Many Asean member nations are conducting bilateral talks that are just fine, because they are complementary [to the RCEP],” Wirjawan said.

The minister has previously said that the RCEP would “rewrap” five current free trade agreements (FTAs) with Asean’s six major trading partners, China, Japan, India, South Korea, Australia and New Zealand.

Asean’s FTA with Australia and New Zealand covers both nations.

Wirjawan said that the prospects for the RCEP were currently brighter than of the Trans-Pacific Partnership (TPP) free trade agreement touted by the US, as Asean already had FTAs in place, albeit mostly on goods and tariffs, with most of the nations involved.

The RCEP will expand upon existing FTAs to include agreements covering services and investment.

Asean is currently in discussions to expand its FTA with India, which it expects to complete in time for the Asean-India Commemorative Summit next month in India. Similar negotiations will follow with Japan.

Earlier in the day, there was a global dialogue between Asean leaders with the heads of world financial institutions, including Asia Development Bank President Haruhiko Kuroda, IMF Managing Director Christine Lagarde, World Bank Managing Director Caroline Anstey, UN Conference on Trade and Development Secretary-General Supachai Panitchpakdi and World Trade Organisation Director-General Pascal Lamy.

Wirjawan said that the leaders agreed that Asean had shown itself to be resilient amid the global financial crisis, becoming a model for other economic zones.

“Also discussed were efforts to face financial crises, such as the Chiang Mai Initiative pool of funds, which has been increased from $120 million to $240 million,” Wirjawan said.

Another important decision that was made during meetings and summits in Cambodia between November 15 and 20 was to start additional talks on implementing the Asean Economic Community on Dec. 31, 2015, to aid member nations in their preparations.

Asean’s leaders also adopted the Asean Human Rights Declaration, despite critics who said that the document was not up to universal standards of human rights protection, promotion, monitoring and enjoyment.

At the end of the closing ceremony, Hun Sen presented the gavel to Brunei Darussalam Sultan Hassanal Bolkiah to mark the handover of Asean’s rotating chair from Cambodia to Brunei starting on January 1.

Bolkiah said it would be the fourth time that Brunei would hold Asean’s chair, and that the nation had chosen a motto of “Our People, Our Future Together” for Asean for 2013.

Asean Secretary-General Surin Pitsuwan of Thailand also brought to an end to his term. He will be replaced by Vietnamese deputy foreign minister Le Luong Minh, who has been endorsed by Asean’s member nations.
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An alternative to US President Barack Obama’s Trans-Pacific Partnership, the 16-member Regional Comprehensive Partnership (RCEP) is the newest concept for an economic union between ASEAN and six major trading partners, China, Japan, India, South Korea, Australia and New Zealand.

The RCEP is supposed to be a trading bloc that will comprise more than three billion people with a combined GDP of $20 trillion, or almost one-third of the global economy. Officials hope to have the talks concluded by the end of 2015.

Source: Investvine
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Association of Southeast Asian Nations

The First ASEAN summit was held in February 1976 in Bali.

The most recent 21st Summit was held from November 18-20, 2012 in Phnom Penh, Cambodia
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Video: ASEAN agenda


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Video: Opening Ceremony of the 21st ASEAN Summit


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Trans-Pacific Partnership

On November 12, 2011, the Leaders of the nine Trans-Pacific Partnership countries – Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, Vietnam, and the United States – announced the achievement of the broad outlines of an ambitious, 21st-century Trans-Pacific Partnership (TPP) agreement that will enhance trade and investment among the TPP partner countries, promote innovation, economic growth and development, and support the creation and retention of jobs.

INCREASING AMERICAN EXPORTS, SUPPORTING AMERICAN JOBS

President Obama announced in November 2009 the United States’ intention to participate in the Trans-Pacific Partnership (TPP) negotiations to conclude an ambitious, next-generation, Asia-Pacific trade agreement that reflects U.S. priorities and values. Through this agreement, we are seeking to boost U.S. economic growth and support the creation and retention of high-quality jobs at home by increasing American exports to a region that includes some of the world’s most robust economies and that represents more than 40 percent of global trade. The Obama Administration has been working in partnership with Congress and consulting closely with stakeholders around the country to ensure TPP addresses the issues that American businesses and workers are facing today, and may confront in the future.

The Trans-Pacific Partnership Framework

The United States, along with Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam are working to craft a high-standard agreement that addresses new and emerging trade issues and 21st-century challenges. The agreement will include:

• Core issues traditionally included in trade agreements, including industrial goods, agriculture, and textiles as well as rules on intellectual property, technical barriers to trade, labor, and environment.

• Cross-cutting issues not previously in trade agreements, such as making the regulatory systems of TPP countries more compatible so U.S. companies can operate more seamlessly in TPP markets, and helping innovative, job-creating small- and medium-sized enterprises participate more actively in international trade.

• New emerging trade issues such as addressing trade and investment in innovative products and services, including digital technologies, and ensuring state-owned enterprises compete fairly with private companies and do not distort competition in ways that put U.S. companies and workers at a disadvantage.

Leading Asia-Pacific Regional Integration Initiative

The TPP is the most credible pathway to broader Asia-Pacific regional economic integration. After nine rounds of negotiations, the nine countries made solid progress and have now achieved the broad outlines of an agreement. During their meeting on the margins of the APEC meeting in Honolulu, the TPP Leaders agreed to seek to conclude the agreement as quickly as possible and instructed their negotiators to expedite their work. The nine countries also welcomed the interest expressed by other countries in joining the agreement and will begin bilateral processes with these interested countries to discuss their readiness and ambition to meet the standards and objectives of the TPP. Once these bilateral processes have concluded, all current Parties will decide on inclusion of new members by consensus.

American Competitiveness in the Asia-Pacific

The TPP is a key element of the Obama Administration strategy to make U.S. engagement in the Asia-Pacific region a top priority. The huge and growing markets of the Asia-Pacific already are key destinations for U.S. manufactured goods, agricultural products, and services suppliers. As a group, TPP countries are the fourth largest goods and services export market of the United States. U.S. goods exports to the broader Asia-Pacific totaled $775 billion in 2010, a 25.5 percent increase over 2009 and equal to 61 percent of total U.S. goods exports to the world. U.S. exports of agricultural products to the region totaled $83 billion in 2010 and accounted for 72 percent of total U.S. agricultural exports to the world. U.S. private services exports totaled $177 billion in 2009 (latest data available), 37 percent of total U.S. private services exports to the world. America’s small- and medium-sized enterprises alone exported $171 billion to the Asia-Pacific in 2009 (latest data available).

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Video: Trans-Pacific Partnership negotiated in secret


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Video: Dennis Kucinich discusses the secrecy of the Trans Pacific Partnership
Dennis Kucinich (Democrat) is a member of the U.S. House of Representatives from Ohio’s 10th district
October 18, 2012 before the elction of the U.S. President took place on November 6, 2012


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Sources: Novan Iman Santosa The Jakarta Post

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Are Malaysian salaries enough to draw our talents back?

 Click on graphic for larger view.

FOR Daniel Chew, Brisbane a city of modern skyscrapers but known for its laidback lifestyle has been “home” for the last 10 years.

Even before graduating with a degree in Commerce from the University of Queensland, Chew, 29, remembers having secured a job offer. The fact that his qualifications entitled him for permanent residence in Australia only made his decision to stay on so much easier.

His career path was set out in 2005, with him joining KPMG as an auditor, and later moving on to its corporate finance division where he specialised in business valuations. His years in professional practice also saw him qualify as a chartered accountant.

Today, Chew is a commercial analyst in the oil and gas industry, and he says the salary range for such a role can be anywhere from A$80,000 (about RM255,000) to A$140,000 (about RM446,000) per annum, “depending on the level and type of experience”.

“I don't think I could be earning in Malaysia what I earn here. Just the exchange rate alone already makes the salary here three times more than what it is in Malaysia,” he says.

Opportunity and lifestyle are two other factors that are keeping him Down Under, but he does not discount the possibility of returning to Kuala Lumpur if a good opportunity presents itself.

“Right now I have a girlfriend here, which means that if I were to go back, it must also mean that there is a good job prospect for her as well.

“Having a good salary package would definitely be a good motivator (to move back), but I'm also looking at career growth opportunities. And being close to my family would be a plus point,” he says.

Norman: ‘Salaries in Malaysia in the mid-tier management are generally about 10% to 30% lower compared with that found in our Asia Pacific counterparts such as Singapore, Hong Kong and Australia.’

Another Malaysian, who only wants to be known as Justin and who has been in London for about nine years, says he is apprehensive about coming back.

Justin works in the finance department of an investment bank. The market rate for his role is roughly between £50,000 (about RM248,000) and £60,000 (about RM297,000) per annum, one which he isn't sure Malaysia can match.

“I don't know if Malaysia would be able to offer a better salary package but for me, the main question is whether Malaysia will be able offer the same opportunities.

“London is a world hub for foreign exchange (FX) and other investment banking products such as credits, equity, rates, etc, whereas the products traded in Malaysia are considered vanilla'. What I do in investment banking is quite specific. Even if I were to move into a different product area, there might not be a lot of opportunities for my career development in Malaysia,” he says.

However, Justin adds that taking care of his ageing parents in Kuala Lumpur is also an important consideration, and if push comes to shove, “Singapore might be a feasible option”.

Chew and Justin are just two examples of the many Malaysian talents living abroad, and to pull them back, salary and career opportunities are two factors which need to be seriously looked into. It has been reported that at present, as many as one million Malaysians are living abroad.

Interestingly though, according to Kelly Services managing director Melissa Norman, salaries in Malaysia in the mid-tier management are generally about 10% to 30% lower than that in our Asia-Pacific (Apec) counterparts such as Singapore, Hong Kong and Australia.

“It varies depending on the functions and skills, but for the mid-tier level, the difference is between 10% and 30%. When it comes to the C-suite executives, the difference could be much higher (where salaries overseas could double that in Malaysia),” she says, adding that the exchange rate alone is a pull factor for Malaysians to work overseas.

Money issues: It has been reported that as many as one million Malaysians are living abroad. To pull them back, salary and career opportunities are two factors which need to be seriously looked into.

 

(Refer to the chart, which is derived from the Kelly Services Asia Pacific Professional and Technical Salary Guide 2012. The salary guide is based on the actual transactions between Kelly's clients and candidates.)

Currently, positions that are in high demand in the Apec region are in the engineering and information technology industries.

“Where it shows (in the chart) that Malaysia is offering a higher salary compared to, say, Singapore, it means that those are skills which are highly in demand. They are niche skills, and companies are willing to pay a higher salary to bring in talent from abroad,” she says.

Generally, Norman says, fresh graduates in Singapore are commanding a starting salary of about S$2,500 (RM6,200), while many Malaysian graduates are “still hovering between RM1,800 and RM2,000”.

“You need to go one step further and ask Why are they getting paid a little more, and why are we paid a little less?' This brings you to the quality of the students. The majority of graduates here come out lacking in skills.

Sure, Malaysia is moving towards a high-income economy, but if wages go up and productivity remains the same, it would be a recipe for disaster. - Shamsuddin Bardan, MEF executive director

“When you talk about Singapore graduates, you're talking about universities like NTU (Nanyang Technological University), which are the cream of the crop. So the package they earn is warranted based on the quality of their background.
 
“Over here, you have the cream of the crop too, but naturally they get picked by all the big boys' (major firms and MNCs) even before they graduate. And you will have a pool of students who study overseas, but they don't come back,” she says.

Malaysian Employers Federation (MEF) executive director Shamsuddin Bardan adds that when it comes to salaries, one has to look at the productivity aspect as well.

“When you talk about whether Malaysian salaries are competitive, you have to factor in productivity. According to the MPC's (Malaysia Productivity Corporation) 2012 report, Malaysia's productivity is 3.8 times lower than Singapore's productivity.

“In simple terms, what takes one employee to do in Singapore takes 3.8 employees here to accomplish the same task,” he explains.

According to the report, Malaysia's employee productivity value (the value of productivity of one Malaysian employee) is at US$14,217, lower than Hong Kong at US$65,174 and Singapore at US$55,702.

“So to look at wages on its own, that would not be fair. Sure, Malaysia is moving towards a high-income economy, but if the wages go up and productivity remains the same, it would be a recipe for disaster,” Shamsuddin says.

But the fact remains that brain drain and talent scarcity in Malaysia are very real issues that challenge employers.

Norman says that organisations are definitely “feeling the pinch of scarcity of skilled talent” which is prevalent today as people are very open to the idea of changing jobs and moving countries.

Since 2010, the Government has also been trying to woo talent back via TalentCorp, and more recently, Prime Minister Datuk Seri Najib Tun Razak announced the Talent Roadmap 2020, a nine-year time frame designed to address the underlying issues affecting talent availability in Malaysia.

So what will it take to bring our Malaysian talents back?

“Motivation is different for different people, but I would say the top three things would be the total package (salary, compensation plus benefits), the type of role these talents will have here (roles will have to be better, as no one moves laterally), and the policies that are involved (how easy it will be for talents to come back with foreign spouses, for example),” Norman says.

She adds that in trying to attract Malaysian talents back, the “rewards and the opportunities must be fairly presented so there's a nudge for people to make that move”. “To a certain extent, having Malaysians abroad is good for Malaysia, because of the exposure that they will have. But if we can bring them back, they can do so much for the country.

“Today when you look for talent, organisations need to pitch. If the talent is extremely great, some companies even have an attraction bonus just to get them to sign on. Package jumps when you're doing head hunting is fairly high,” she says.

Talent retention is equally important.

“We must recognise the fact that we must do something to retain the talent we already have here, so we don't also lose them eventually,” she says, likening it to a leaking bucket.

Ultimately, Norman says, the talent that Malaysians want back are “skilled workers who are in demand with niche expertise”.

To bring them back, the question which will need answering is “What's in it for them?”

BY LISA GOH  lisagoh@thestar.com.my/Asian News Network

Financial Times hails Malaysia’s economic boom

KUALA LUMPUR: It is not always that emerging economies get favourable remarks from hard-boiled foreign media practitioners but Malaysia is getting more laudatory remarks from foreign journalists these days.

Take Jeremy Grant's article on Kuala Lumpur's soon-to-be-developed new financial centre, the Tun Razak Exchange, and the state of the Malaysian economy in the Financial Times Friday, for example.

He wrote: “With much of the world economy experiencing anaemic growth at best, it is hard to believe that any country would contemplate a project on this scale.

“Yet Malaysia's economy is enjoying a gravity-defying boom that is confounding sceptics. Second-quarter gross domestic product figures out this week showed the economy grew by 5.4%, way above consensus expectations of 4.6%, and the 4.9% recorded - after an upward revision - for the previous quarter.”

Grant attributed this development to big-ticket government spending, lending to business by well-capitalised banks, and robust consumer demand, fuelled by pay rises for civil servants and cash handouts that have even seen taxi drivers receive vouchers for free replacement tyres.

“Malaysia's stock market has been among the best performers in the world, buoyed by big flotations including Felda, a state-controlled palm oil producer, which was the second-largest initial public offering after Facebook when it raised over USD2bil last month. Bankers are cashing in with a parade of further IPOs expected within months,” he added.

“Much of the impetus behind the growth comes from the “economic transformation programme” initiated by Prime Minister Datuk Seri Najib Tun Razak when he came to power in 2009.

This involves dozens of government-backed projects designed to boost per capita income to USD15,500 by 2020, from USD9,600 last year and lift Malaysia out of its “middle-income trap”, Grant wrote.

Over spending: Analysts say one nagging concern for Malaysia is the rising household debt caused by the rapid growth in credit card usage.

The Financial Times also quoted Christian de Guzman, an analyst at Moody's, a rating agency, who admitted he was sceptical about the programme's ability to spur private sector development when it was launched. De Guzman is more convinced now, adding that “The proof of the pudding is in the eating but so far they are on track. In aggregate there are just so many things going on [in the economy].”

Grant wrote that “Not only has Malaysia experienced strong domestic demand offsetting its vulnerability to weakening demand for its exports - much of them electronics destined for Europe; it has also benefited from deeper ties with economies in Asia.

Moody's says that in 2006 the United States was Malaysia's largest trading partner, absorbing 18.8 per cent of its exports, while Asia Pacific accounted for 60 per cent. By last year the US share had dwindled to 8.3 per cent while Asia Pacific jumped to 69 per cent.

Malaysia's healthy economy - and the resulting “feel good” factor - stands in contrast to growing anxiety among Malaysia's neighbours in south-east Asia as the global downturn has tarnished their economies.

Analysts point out one nagging concern for Malaysia: rising household debt, caused by rapid growth in credit card usage.

As the transformation programme's projects take root, Grant wrote that Bank Negara Malaysia is forecasting full-year growth at the upper end of its 4-5 per cent.

Amidst this scenario, the Financial Times also quoted Rahul Bajoria, an anaylst at Barclays, as saying that: “We expect momentum to remain underpinned as the project-based nature of these investments means that it is unlikely to be halted abruptly.” - Bernama

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China advises ASEAN to be independent

Don't be bystanders or tools of major powers, says Beijing

China has urged members of the Association of Southeast Asian Nations not to be a bystander or "a tool of major powers" to cope with the new challenges in the current global political and economic atmosphere.

"ASEAN should exercise its independent judgment to move this region forward. If ASEAN takes sides, it would lose its relevance," Vice-Minister of Foreign Affairs Fu Ying told The Nation in an exclusive interview over the weekend.

"ASEAN has an important role to play with its tried-and-true ASEAN Way, as major powers are shaping their new relations in the region."

She said relations with ASEAN countries are of "unquestionable priority" for China. China will continue to support ASEAN's "centrality" in East Asian cooperation, she said.

Fu was in Bangkok over the weekend to meet Thailand's Foreign Affairs Permanent Secretary Sihasak Phuangketkeow. In July, Thailand is to take over the role of ASEAN's coordinator with China for the next three years.

Since the dialogue partnership was established in the early 1990s, ASEAN-China relations have enjoyed robust development, she said.

"We have also encountered a lot of challenges. Yet, rather than hurting our relations, these challenges were turned into opportunities to reinforce our relations," she said.

Asked about the United States' decision to "rebalance" its forces in Asia and the Pacific, Fu said: "China has no problem accepting the US presence and its positive influence in the Asia Pacific. We welcome a constructive US role in regional affairs."

She noted, however, that there is growing concern from media and academics in China over the heavy US emphasis on security in the region.

"I've noticed that the same concern has also been heard in other Asian countries. Some say China is the 'elephant in the room'. Some others worry about a possible return to the Cold War," she said.

"As I see it, maybe it's still too early to draw conclusions."

Asked whether Beijing is concerned about Washington's possible "containment policy" against China, she said: "The US has loudly denied any intention to contain China. We will just take them at their word."

She said she did not believe any country could "contain" another country in the current global environment.

"How can anyone contain 1.3 billion people of China from building better lives for themselves?" she asked.

Fu said China's industrialization is "only halfway" complete. Its huge population means that China's per capita GDP would remain low for a long time to come.

"We are still a developing country working hard to address the imbalances and the uncoordinated and unsustainable aspects of the economy," she said.

Regarding the South China Sea disputes, the vice-minister reiterated that China wants to handle the disputes peacefully through direct negotiations between countries concerned.

"At the same time, we must protect China's sovereignty and maritime rights and interests. We remain committed to working with countries concerned to reach a farsighted and wise solution," she added.

China and ASEAN countries signed the Declaration of Conduct of Parties in the South China Sea in 2002. Central to the DOC is a commitment by all parties to "exercise self-restraint in the conduct of activities that would complicate or escalate disputes and affect peace and stability".

The vice-minister said China and ASEAN are also involved in ongoing discussions on the formulation of a Code of Conduct. "This shows that safeguarding stability in the region and managing disputes appropriately remains the mainstream thinking in our region."

She added: "We sincerely hope that China and ASEAN countries will keep a cool head on this issue and exercise restraint through action, and that all parties will refrain from undermining the atmosphere for peace and stability in the region."

She pointed out that more than 80 percent of China's trade goes through the sea lanes in South China Sea.

"Safety of the navigation routes is of utmost importance for China. We will do all we can to ensure peace in this part of the world," Fu said.

By Suthichai Yoon  (China Daily)  
Suthichai Yoon is editor-in-chief of The Nation Group in Bangkok
The Star/Asia News Network

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US-China heralded a new 'great power relationship'

China seeks ‘great power relationship’ with U.S. but warns against meddling in Tibet, Taiwan

Jewel Samad/AFP/Getty Images

China's Vice President Xi Jinping: “China welcomes the United States playing a constructive role in promoting the peace, stability and prosperity of the Asia-Pacific region, and at the same time we hope the U.S. side will truly respect the interests and concerns of countries in the region, including China.”hare

By Chris Buckley and Doug Palmer

WASHINGTON – China’s Vice President Xi Jinping on Wednesday offered deeper co-operation with the United States on trade and hot spots like North Korea and Iran, but warned Washington to heed Beijing’s demands on Tibet, Taiwan and other contentious issues.

“Sino-U.S. relations stand at a new historic starting point,” China’s expected next leader told U.S. business groups after meetings on Tuesday with President Barack Obama and other top U.S. officials.

China and the United States should strive to create “a new type of great power relationship for the 21st century,” Xi said.

But he said the two powers also had to “strive to avoid misunderstandings and avert misjudgments” and should “truly respect each other’s core interests and major concerns.”

Xi’s visit to United States this week presents a chance for him to boost his international standing before his expected promotion to head of China’s communist party later this year and president of the world’s most populous nation in 2013.

Even as Xi continued his U.S. visit, Obama, at a campaign-style stop in Milwaukee, took aim at China’s trade practices, saying he will not stand idly by when American’s competitors “don’t play by the rules.” “I directed my administration to create a Trade Enforcement Unit with one job: investigating unfair trade practices in countries like China,” Obama told factory workers.

Xi met with House of Representatives Speaker John Boehner and Senate Majority Harry Reid on Wednesday morning and after his speech was headed to Iowa for the next leg of his trip, which finishes later this week in Los Angeles.

Xi addressed a number of sore spots in the U.S.-China relationship, including Beijing’s currency policy.

Many U.S. lawmakers complain the yuan is significantly undervalued, giving Chinese companies an unfair price advantage that helped lift the U.S. trade deficit with China to a record US$295.5-billion in 2011.

Xi said currency reforms already taken by Beijing helped boost U.S. exports to China to more than US$100-billion in 2011 and has significantly reduced China’s overall trade surplus.

“China has become the United States’ fastest growing export market,” Xi said. “The trade surplus as a proportion of GDP has been falling from over 7% to 2%, at a level internationally recognized as reasonable.”

U.S. Treasury Secretary Geithner acknowledged on Wednesday that Beijing is gradually letting its currency rise, but not fast enough to please the United States.

“We think they have some ways to go, we would like them to move more quickly,” he told a congressional panel.



SHARED CHALLENGES

Xi is poised to become China’s next leader following a decade in which it has risen to become the world’s second largest economy while the United States has fought two wars and endured the deepest and longest recession since the Great Depression that sapped its resources.

“The world is currently undergoing profound changes, and China and the United States face shared challenges and shared responsibilities in international affairs,” Xi said.

“We should further use bilateral and multilateral mechanisms to enhance coordination between China and the United States on hotspots, including developments on the Korean peninsula and the Iran nuclear issue,” he said.

At the same time, he urged Washington not to support movements in Taiwan and Tibet for independence.

China deems the self-ruled island of Taiwan to be an illegitimate breakaway from mainland rule since 1949, and has warned that the island must accept eventual reunification.

In recent years, tensions between the two sides of the Taiwan Strait have eased as economic flows have grown. But Beijing remains wary of U.S. involvement in the issue, which it calls an internal affair.

In early 2010, the Obama administrations decision to move forward with proposed arms sales to Taiwan triggered vehement criticism from Beijing, including warnings of sanctions against U.S. companies involved in the sales. Those warnings petered out, but Xi made clear that Taiwan remains an acute concern for Beijing’s dealings with Washington.

Tensions over Chinese control of Tibet have flared in past months when a succession of protests and self-immolations have exposed volatile discontent. Chinese officials have repeatedly blamed those tensions on separatists or supporters of the Dalai Lama, the exiled Buddhist leader of the region.

Xi also acknowledged the Obama administration’s recent “pivot” toward Asia, but warned it not to push too far.

“China welcomes the United States playing a constructive role in promoting the peace, stability and prosperity of the Asia-Pacific region, and at the same time we hope the U.S. side will truly respect the interests and concerns of countries in the region, including China.”

© Thomson Reuters 2012

Xi sees new 'starting point' for US-China ties

By Andrew Beatty (AFP) 

WASHINGTON — Chinese heir apparent Xi Jinping heralded "a new historical starting point" for ties with the United States, wooing US business leaders with a glimpse of a more cooperative future.

Speaking during a lavish ballroom luncheon with the upper crust of corporate America, Vice President Xi described deeper Sino-American ties as an "unstoppable river that keeps surging ahead."

Glossing over the tumultuous twists and turns in 30 years of Cold War-dominated relations, Xi said interests had become ever-more intertwined. "It is a course that cannot be stopped or reversed," he said.

Xi welcomed Washington's interest in the Asia Pacific region, and said cooperation was needed on a range of challenges from North Korea to Iran, so long as China's interests are also respected.

Xi is on his maiden visit to the United States as a top official, a trip many hope will help close a chapter in relations characterized by mistrust and mudslinging, particularly in the commercial sphere.

As the tectonic plates of global trade have shifted in recent decades, China and the United States -- the world's two largest economies -- have frequently collided, jutted and bumped against each other, sometimes to damaging effect for both.

With Xi widely tipped to lead China from 2013 and Obama in a November re-election battle, the visit is being seen as a dress rehearsal for the next generation of US-China relations.

During the trip, Xi has worked US constituencies key to the bilateral ties: official Washington, corporate leaders and, in Iowa, a return to small-town America which he visited more than two decades ago.

His stops in Washington have included the White House, the Pentagon, the State Department, Congress and the US-China Business Council.

Throughout his trip Xi has received the trappings of a state visit -- even if he is only head of state in waiting.

In a broad-ranging speech that was short on specifics Wednesday, Xi told business leaders that increased understanding, mutual respect for core interests, trade and cooperation in international affairs should form the basis for relations.

"Over the past 33 years since the establishment of diplomatic ties, the friendship between our two peoples has deepened, mutually beneficial cooperation has expanded and our interests have become increasingly interconnected," he said.

At the luncheon Xi was introduced by former US secretary of state Henry Kissinger whose secret trip to China in 1971 paved the way for the normalization of relations between Washington and Beijing.

The pair were flanked by a cadre of Chinese Communist Party officials, as well as executives from Coca Cola, Chevron, ConocoPhillips, Dow Chemical, DuPont, Procter & Gamble and Estee Lauder.

Coca Cola CEO Muhtar Kent expressed the cautious optimism felt in the US business community about future ties with China.

He described Xi's visit as "another important milestone toward building an enduring and constructive relationship between our two nations."

The Chinese vice president largely steered clear of specific policy pronouncements, but stressed the mutual benefits of trade, pointing out that 47 of 50 US states had seen their exports with China grow in the last decade.

Despite deepening ties, many Americans and their lawmakers angrily accuse Beijing of not playing by the rules.

They accuse China of keeping the value of its currency unfairly low to fuel inexpensive exports, which have catalyzed China's headlong dash toward becoming an economic superpower.

From June 2010, Beijing has allowed the yuan to rise 8.5 percent against the dollar, in part because of domestic inflation pressures -- making the yuan an increasingly dubious scapegoat for lopsided trade.

In the last decade, trade between the two countries has increased over 275 percent and is now worth half a trillion dollars a year.

But Chinese exports still make up 80 percent of bilateral trade, despite China joining the World Trade Organization a decade ago, leading to accusations of protectionism from US industry.

Xi, repeating a long standing gripe, said the US would need to reform its own trade restrictions on exports to China in order to right that imbalance.

"It is very important for addressing the China-US trade imbalance that the United States adjusts its economic policies and structure, including removing various restrictions on exports to China, in particular easing control on civilian high-tech exports to China as soon as possible," he said.

China has often blamed the US deficit on Washington's own rules on exporting sensitive equipment that could be adapted for military or intelligence use.

Copyright © 2012 AFP. All rights reserved

The role that the US plays in Asia: Containment of China!

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The role that the US plays in Asia

Comment by XUE LITAI

SINO-US ties were in focus at the recent Asia-Pacific Economic Cooperation (Apec) summit in Honolulu and the just concluded East Asia Summit (EAS) in Bali, especially because of the European economic and political crises.

It was not a good time for US President Barack Obama to attend the EAS, given the unstable state of the American economy, and the Congressional super committee’s failure on the federal budget.

The frictions between the United States and China – from the yuan’s exchange rate to the South China Sea disputes – are nothing new. But the problem now is that the two countries seem unable to narrow their perception gap.

Obama met with Premier Wen Jiabao twice during the EAS to say that China should allow the yuan to revalue more rapidly.

At the Apec summit in Hononulu, Obama had complained to President Hu Jintao that the yuan was undervalued and said it “disadvantages American business; it disadvantages American workers. And we have said to them that this is something that has to change”.

The Chinese leaders responded that the yuan’s exchange rate was not responsible for the US’ high trade deficit with China, instead structural problems in the American economy were to blame for that.

In fact, China has been emphasising the need for a new mechanism for global economic governance to increase “the voice of emerging markets and developing economies”.

Before the summits, US officials had said countries concerned should exercise self-restraint and refrain from taking any action that could escalate or complicate the territorial disputes in the South China Sea. The US remark was directed at China, too.

But before that, Obama had issued an indirect message to China saying: “We want you to play by the rules.”

He warned that “where we see rules being broken, we’ll speak out and, in some cases, we will take action.”

Chinese leaders and people, however, think that the US dragged the South China Sea disputes, an irrelevant issue, to the EAS to fulfil its own agenda.



To them, the US’ intention is clear: It is using the South China Sea disputes to drive a wedge between China and some of its South-East Asian neighbours, which have enjoyed “20 years of steady friendship”.

It is clear that the US is desperate to engage full-time and establish its diversified presence in Asia as part of its global repositioning strategy. Washington is in the process of one of the most important transitions, that is, repositioning and rebalancing its foreign policy priorities.

To that end, it has begun shifting its resources and capabilities from the Middle East and South Asia to East Asia. Recognising that the “American future is in Asia”, the US is hell-bent on establishing a strong presence in Asia.

In the 21st century, as US Secretary of State Hillary Clinton has said, the world’s strategic and economic centre of gravity “will be Asia Pacific”. Clinton said that with the withdrawal of American forces from Iraq and Afghanistan, the US had reached a “pivot point” that should allow it to “lock in a substantially increased investment – diplomatic, economic, strategic and otherwise – in this region”.

Obama soon underscored the shift by stressing: “There is no region in the world that we consider more vital than the Asia-Pacific region; we are going to prioritise this region.”

Such a strategic calculus makes US-China ties the most important and complex relationship Washington has ever established. Thus, the US has to have constructive engagement with China.

But simultaneously, some senior US officials also consider it necessary to continue their China-containment policy. As a result, the US is using the South China Sea disputes to prevent China’s influence from advancing southward
.
Actually, Obama’s decision to attend the EAS is symbolic of Washington’s policy shift towards Asia. In other words, the US’ purpose was to use the EAS to reduce China’s influence in the region.

The Obama administration has demonstrated the US’ established policy on containment of China over the past two years.

Once, Obama even declared: “We’ve brought more enforcement actions against China over the last couple of years than had taken place in many of the preceding years.”

Probably, his declaration was aimed partly at the strategic calculations mentioned above and partly to blunt criticism of his administration by trade unions and Republican rivals, who could accuse him of not taking tougher action against China in the run-up to next year’s presidential election.

The US’ focus on Trans-Pacific Partnership could be interpreted as part of its economic strategy to compete with China’s increasing influence in the region.

In response, China has announced that it would offer its South-East Asian neighbours US$10bil (RM31.8bil) in infrastructure loans and establish a three billion yuan (RM1.5bil) fund to accelerate maritime cooperation with Asean member states.

Among the areas covered by the fund are marine research, navigation safety and combating transnational crimes. Asean member states now look to China for economic revitalisation and seek security guarantee from the US.

But such is the triangular US-China-Asean ties that only after the US and China reach greater agreement over Asia-Pacific affairs can Asean member states overcome the dilemma of choice. — China Daily/Asia News Network

> The author is a research associate at the Center for International Security and Cooperation at Stanford University in California, US.

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