Regulate property management! Forum on Strata Management in Penang

IT is understandable for the Strata Management Act to attract much public interest. There are (or will soon be) more people living in high-rise strata properties than in landed properties, given the rapid urbanisation and rising land prices in Malaysia.

The issue of the Board of Valuers, Appraisers and Estate Agents (BVAEA) seeking to regulate property management is controversial. Since the BVAEA is a body under the Finance Ministry, isn’t it odd that the Finance Ministry rather than the Housing Ministry is trying to regulate property management?

Most people have a pretty good idea about the job of a property manager and would conclude that it is a generalist’s job.

There should not be too many restrictions attached to a generalist’s job, such as that of a sales manager or a supermarket manager.

The opinion of HBA honorary secretary-general Chang Kim Loong on the role of a property manager is a bit overstated.

Property managers are at all times employees of MCs and JMBs and never the other way round.

Lives and property worth millions of ringgit are the prime responsibilities of employers and not the employees.

It is an exaggeration to say that lives and property worth millions are being entrusted to property managers to care, control and manage.

However, it may be a good idea to regulate the property manager’s job, but it would be more appropriate if it came under a board in the Housing Ministry with input from engineers and architects.

It would be less appropriate to come under a board in the Finance Ministry, as property management has more to do with building than finance.

By A CONCERNED CITIZEN Kuala Lumpur

Forum on strata management

A SEMINAR on the Strata Management Bill 2012 as well as the Strata Titles (Amendment) Act 2012 will be held at Auditorium C and F, Level 5, Komtar, from 10am to 4pm on Jan 13.

Komtar assemblyman Ng Wei Aik said many people were unaware of the new bill’s contents, including how to handle strata management disputes.

“The bill provides better protection for property owners. It is important that they know their rights,” he said at a press conference.

He said lawyer Lee Khai would talk on the application of the Strata Management Bill while licensed land surveyor Chuang Kuang Han would talk on Strata Titles Application and Problematic Cases.

Registration fee is RM30 per person which includes buffet lunch and lecture notes.

The public, including management corporations, joint management bodies and residents associations are invited to attend.

For more details, contact Ng’s service centre at 04-2270215/017-4108914/012-4290163, fax 04-2278215 or e-mail dapkomtar308@gmail.com before Jan 8.

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An American-Made Business Model Has Less Success Overseas

For years, the titans of finance have held out the promise that they could export their business model overseas and mint billions in the process. Yet, there are increasing signs that global deal-making was always a myth.

If you’ve been anywhere near a Wall Street conference in the last five years, you know the drill. Deal makers bemoan the United States as a mature and overregulated economy. They talk about heading abroad, as emerging market economies leave us far behind. To listen to them, one might think the rest of the world was a paradise out of “Atlas Shrugged,” where capital flows and where private equity, investment banks and other investors can freely seek opportunities.

So what country is No. 1 in initial public offerings so far this year? Yes, it is the United States, according to Renaissance Capital, with 75 I.P.O.’s raising $39 billion in total. Compare this activity with China, where 41 I.P.O.’s raised just $8.1 billion.

M&AS

And in mergers and acquisitions? Again, it is the United States, with 53 percent of the worldwide deal volume, up from 51 percent from last year, according to Dealogic. For investment banks, this means that the United States has a 46 percent share of the $63 billion in worldwide investment banking revenue, up from 34.6 percent in 2009.

With the slowdown in once-hot emerging markets, the tide is going out, baring all of the problems and issues associated with global deal-making.

China is a prime example. Huge amounts of foreign and state investment produced an economic miracle. And in that time, wealth was there to be had.

But let’s be clear about where that wealth came from. In the United States, deal makers make money primarily by buying underperforming assets, adding some financial wizardry and riding any improvements in the stock market. Sometimes, they get lucky by making a quick profit, but often private equity works to squeeze out inefficiencies and make operating improvements in companies and then takes them public a few years later.

China's situation

In China, what increasingly appears to have been a stock market and asset bubble spurred by hundreds of billions in direct investment has created some spectacular early profits for deal makers. The private equity firm Carlyle Group, for example, has made an estimated $4.4 billion on an investment in China Pacific Insurance, which it took public on the Hong Kong Stock Exchange.

But now, with the Chinese I.P.O. market at a virtual standstill and the Shanghai market down more than 30 percent from its high last year, that avenue to riches is over. People are starting to say that investment in China resembles a “No Exit” sign.

Deal makers are left with a back-to-basics approach that looks to make money from companies through economic growth or improving their performance. Yet most of these investments are made with state actors and minority positions, meaning that there may be little opportunity to actually do anything more than sit and wait and hope. And you know what they say about hope as a strategy.

It appears that deal makers are starting to realize the problem. Foreign direct investment in China was down 3.67 percent from last year to $9.6 billion, and it is likely to remain on a downward trend.

And China has been among the friendliest places for deal makers. Other emerging markets have been less accommodating. Take India, which has been criticized for excessive regulation, high taxes and ownership prohibitions. David Bonderman, the head of the private equity giant TPG Capital, recently said that “we stay away from places that have impossible governments and impossible tax regimes, which means sayonara to India.”

Foreign issues

The comment about India highlights another problem with foreign deal-making: it’s foreign. Sometimes, the political winds change and local governments that initially welcomed investment change their minds.

South Korea, for example, invited foreign capital to invest in its battered financial sector after the Asian currency crisis. But when Lone Star Investments was about to reap billions in profits on an investment in Korea Exchange Bank, a legal battle almost a decade long erupted as Korean government officials accused the fund of vulture investing.

And the political problems are sometimes not directed at foreign investors. South Africa, for example, is undergoing the kind of political turmoil that can stop all foreign investment in its tracks over treatment of its workers and continuing income inequality. Things are not much better in the more mature economies.

Economic doldrums

Europe is in the economic doldrums, and its governments are increasingly protectionist of both jobs and industry. France, for example, recently threatened to nationalize a factory owned by ArcelorMittal, which sought to shut down two furnaces.

The national minister said the company was “not welcome.” It’s hard to see a deal maker profiting from buying an inefficient enterprise that it can’t clean up without risking national censure.

Buying at a low is the lifeblood of any investment strategy — but this assumes that there will be an uptick, and on the Continent, that is uncertain given the state of Greece and the other indebted economies in Southern Europe.

This is all a far cry from the oratory vision-making at conferences. Now that the global gold rush has ended, the belief that the American way of doing deals is portable is being upended.

Fragmented world

We are left with a fragmented world where capital moves not so freely, the problems of politics and regulation are more prominent and investing in emerging markets becomes what it always has been: the province of more specialized investors who are in tune with the political and regulatory requirements. Regardless, the easy riches that many thought these countries would bring are now far out of sight.

And the winner in all of this is likely to be the much-maligned United States, where the economic conditions and regulatory environment first gave birth to these deal makers.

This is not to say that there will still not be global deal-making or that American multinationals will not continue to expand abroad. Of course, there will still be profits in deals overseas. But the vision that deal-making will instantly and seamlessly go global is increasingly exposed as one that was more a fairy tale than reality.- IHT/NYT

---

Steven M. Davidoff, a professor at the Michael E. Moritz College of Law at Ohio State University, is the author of “Gods at War: Shotgun Takeovers, Government by Deal and the Private Equity Implosion.” E-mail: dealprof@nytimes.com | Twitter: @StevenDavidoff

How to ask for a pay rise and get a bonus?

Successful ways to get an increment or bonus - Do not be boastful about your achievements or downplay the role of your colleagues

IT'S now December and year-end is just round the corner. It's also time for reflection about what you have achieved in your current job and what your plans are for next year in terms of your career path.

Taking some time to make such plans is a great way to ensure that you have set yourself in the right direction and how a well-crafted road map can lead you to your outcomes or objectives.

As with every plan, you need to give yourself some private time to set your thoughts in the right direction. Start with choosing a quiet place and give yourself ample time to relax and focus on how the current year has been and what lies ahead that you wish to see happening. Let's look at how you can successfully ask for a pay rise from your bosses if you had met and exceeded your targets and agreed KPIs.

• >Current year reflection is a measure of your achievements

You will need to execute a list which contains information (in bullet points may be sufficient) of the scope of work that you have done during this year and what were the results.

• >Crafting the list of achievements for the year

Start on a monthly overview e.g. January before you proceed to February. That way, you will not miss out any important information for that list. Have the list in a format which details the following in its respective columns:

• >Month

a. From January till November or December if you can already predict the results or outcome.

• >Projects and assignment

a. Note that it cannot be your daily task of following up on calls to clients but must be a sales lead that translated to an actual sales win
b. It can be a group project or one which you did individually

• >People involved

a. If it was a group project, list down the names of your colleagues for clarity
b. List down your role in the project e.g. principal driver or customer liaison person, risk analyst planner (your actual role in the group)

• >Timelines/cost involved

a. Duration from start to completion of project or assignment e.g. weeks or months
b. It could even be completed in a few days time
c. If there were cost investment required which is beyond the time spent on carrying out this programme, place the cost into the column e.g. marketing budget of RM12,000.

• >Objective of the project and assignment

a. What needed to be achieved from this project before it was kick-started
b. What were the challenges or issues that were required to be resolved?
c. What was the sales target in terms of revenue that needed to be realised?

• >Outcome/results achieved

a. The return-on-investment is critical in this column
b. List down the measurable results to be effective e.g.
i. If time was an essence, completion within or earlier than the duration expected or given
ii. If revenue was the outcome, place the amount/value into your outcomes
iii. If cost savings was involved, list down the amount /value saved

• >Conclusion

Chart a simple graph to show your progress on a month-to-month basis based on the agreed KPIs and where you are at now. If you have been with the company for more than two years, create a comparison analysis on your year-to-year progress to showcase your growth. Charts or graphs are easier to read and it gives a clear overview of the results quickly.

What is very important is that the information in that list must be real and a true reflection of what was achieved. Do not list down information which you cannot prove or which is untrue. Be mindful that it's not about having a long grocery list but a list which is impactful in terms of outcomes and results. If there was nothing significant in that month, go to the next month and only list the effective and efficient details in your list.

If your company does not have a performance review/appraisal fixed for year-end, set an appointment with your immediate boss to have that discussion. Be proactive in your approach.

During the discussion, have an open mind that your list may be challenged. Approach your discussion with your boss on a professional manner and never argue your points.

Be diplomatic and highlight the points that you have in your list. Reaffirm your points with facts and in some cases, walk your boss through how it was achieved and the process that was involved.

You may not be the only subordinate your boss has, so, he may not recall each and every project of all his subordinates or the results attached to it. It is advisable to have the discussion with a state of mind that you are showcasing your achievements and not out to prove your boss wrong or to boast of your achievements.

If you know that you have achieved many milestones and have been a star performer, always be humble in your demeanour. Do not be boastful about your achievements or downplay the role of your colleagues on any group projects.

Group projects are always achievable as a result of teamwork no matter how small a role someone else plays. It would be good to share credit on some of the successes by naming some colleagues who had played a critical part in your project list. This reflects your maturity and openness to share credit where it's due. It also shows that you have leadership qualities and values teamwork.

When you ask for a pay rise, you also need to be mindful of the company's performance for the year. Ask yourself if the company has achieved better performance results compared to last year as a benchmark or if your company has achieved the performance results/profits that was targeted at the start of the year based on your CEO/management's direction for the year.

Look internally at your achievement and do a quick Conclusion (as per the list requirements above) on your progress month on month and if possible, compare that with last year's progress. If your company has suffered losses this year, generally it is advisable not to ask for a pay rise. Employees who show loyalty to a company during challenging times will be valued and there are also other ways to measure how the company and its management treat you beyond the pay rise; rewards and recognition (extra annual leave, awards),
good health plan, training and development programme which provided upskilling and personal growth.

Do some research on salary ranges before asking for a pay rise as your pay rise needs to be realistic and based on market rate. Never ask for a pay rise that is unreasonable or which you know the company cannot agree to. Be willing to accept a compromise during the discussion and open yourself to different solutions offered by the company.

As much as we wish to have what our heart desires, there are times we have to face the reality of rejection. If you are successful in getting that pay rise, congratulations but to those who are not successful, do not accept it as a failure or an end to a means.

Things happen for a reason and it may be a call for you to take charge of your own achievements, on your skill sets and, at times, it may be reasons beyond your control such as the company's poor performance as a whole.

Talking HR with Melissa Norman

 Melissa feels that those who invest in their careers do not view salary as the only priority but the job satisfaction and meaningful friendships forged with colleagues and bosses as critical aspects for long-term career fulfilment.

Reading opens up minds

BACK in my first year when I was asked to read cases by my professor, my immediate reaction was to ask how many pages were there to read.

My professor replied: “There’s no harm reading more.”

I also remember attending a scholarship interview where I was asked to give an account of the books I had read.

Proudly I answered: “I did not read any books besides the academic textbooks.”

It is really depressing and shameful that I took pride of my disinterest towards the habit of reading.

This may appear unusual for a law student like me to recount such a disinterest but I am afraid to say that many of my fellow Malaysian friends share such a disinterest, too.

Many students read for the sake of passing their examinations. Many spend time on computer games and working adults may find it tiring to read outside working hours.

As for myself, I turned impatient, disappointed, annoyed and even regretted choosing law as I later found out that I had to read hundreds of pages of cases every week (putting aside the textbooks, commentaries and other journal articles).

Over the years while in law school, I cultivated the habit of reading.

It was hard at the beginning when I had to flip through the dictionary to check the meaning of the words I did not understand, that I lost patience reading the countless pages of books and needless to say I shed many tears in my struggle to finish my law studies.

However, one thing I can assure you is that the sufferings bore fruit. Indeed, they were rewarding. I am no longer sheltered and ignorant.

My general knowledge and vocabulary have increased and with it, my ability to communicate. With the increased knowledge, I can voice an opinion if needed.

The habit of reading opened up my mind that I am now able to see things more objectively than before.

The treasure of knowledge also taught me to keep an open mind and not to accept another’s views blindly.

Reading news and non-fiction illuminates the world for us and reading fiction gives us what non-fiction cannot.

Through reading we travel and through books we find treasures. In those wanderings we find humanity, through the characters we find knowledge.

As how human beings need to be fed, knowledge serves as nourishment for our minds.

Reading opens up the door of knowledge, an important treasure for our country to achieve the 2020 Vision.
So, I urge all of you to cultivate the habit of reading, for yourselves and our country.

JUNE LOH Kulim, Kedah

Get rid of illegal casinos gambling now !

SINGAPORE: Police have arrested five men in a raid on an illegal gambling den in a private apartment at Geylang Road.

I REFER to “Bet illegal casinos can be weeded out” (see below). They should not be allowed to thrive. They are a nuisance and must go.

I hope the enforcement agencies work on this immediately. Stop giving excuses that this cannot be done.

Such nefarious ways and activities must be put to an end. Have the political will to do so and we will see to their demise.

What is also shocking is how illegal massage parlours, budget hotels, nightclubs, pubs, video arcades and other unhealthy businesses have cropped up of late?

Did the state governments give permission for them to operate? Whatever it is, please see to it that they stop functioning.

Their presence is bad. Trust me, nothing good comes from casinos and gambling.

Gambling is addictive and leads to compulsive gambling problems and unhealthy obsessions; it promotes crime, sin, stupidity, laziness, arrogance, greed, selfishness, entitlement and neglect of one’s family, among others.

BULBIR SINGH  Seremban

Bet illegal casinos can be weeded out

IT is known as the street that never sleeps. And for all the wrong reasons.

Because of the proliferation of gambling outlets, businesses along the same street, both legal and illegal, operate non-stop to cater to the demands of the gamblers.

In another part of the Klang Valley, one road is regarded as the hottest gambling spot in town, with 20 outlets along a single stretch.

The Star's investigation into the e-gambling dens in Klang, Selayang, Batu Caves, Kepong and Petaling Jaya reveal that these casinos in the streets thrive because the authorities turn a blind eye to what is going on under their jurisdictions.

Enforcement is lax even when these outlets in highly-popular zones are so easily identified.

We are not talking about illegal activities that operate in the boondocks, where their locations are tightly-kept secrets and you may need special passwords to gain access.

As our expose today on similar outlets in Penang reveals, we are talking about such illegal activities in two of the most developed states in the country.

The local authorities and enforcement agencies are certainly well-equipped to deal with situations like these.

The modus operandi seems simple enough. By day, they are typical business outlets, but by night they transform into bustling gambling dens.

The enforcers should be working round the clock to close them down.

The real action happens after dark, when not only gamblers head to these places, but also others seeking other services, like sex, to unwind after a hard day's work.

One law enforcement official claims that the operators of the illegal e-casinos play “hide-and-seek” with the authorities and often disappear before raids are conducted.

Meanwhile, the local authorities claim that they cannot do anything about the rising gambling menace either because the residents do not complain officially or that the other enforcement agencies are not doing their part.

While that may be the case, such scenarios are common and should not be used as an excuse not to take the necessary action.

The enforcement officials can station themselves in these areas.

The licensing authorities can shut down even the legitimate businesses in the daytime if they have evidence that they are being used for illegal activities at night.

Rather than blame one another over the lack of action, everyone can, and should, work as a team to ensure that our streets come alive, in the day or at night, for only the right reasons.

Otherwise, casinos in the streets will simply spawn crime in the streets.

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Video games turned casinos gambling in Penang

Huge gambling slot machines draw punters to illegal centres

Not so innocent after all: One of the video games arcades that offer gambling slot machines in Sungai Nibong.

GEORGE TOWN: Some video games arcades in Penang are doubling as mini casinos where punters can try their luck on huge gambling slot machines.

One, in Bandar Baru Air Itam here, looks just like any other video games arcade as children, women and the elderly can be seen having a fun time inside the premises.

But it turns out that the main draw at the place are the huge slot machines which can be played by six punters at a time.

For RM10, a punter is given 20 tokens worth 100 credits to gamble with.

At one machine, punters earn credits if they are able to hit targets.

A check revealed that several video games arcades and amusement centres here as well as in Sungai Nibong, Macalister Road and Bandar Baru Air Itam have such slot machines apart from the usual video games for children.

Some even have snooker tables and indoor golf simulation games to make them one-stop entertainment outlets.

These premises are equipped with closed-circuit television (CCTV) cameras and some have tontos (lookouts) stationed outside to sound the alarm if there are enforcement authorities.

Some of the premises are located in secluded shoplots and have tinted windows to avoid detection. There are also operators who only admit regular customers.

Many punters even bring along their spouse and children. While they gamble, their spouse and children play the usual video games.

A punter, who declined to be named, said winning about RM30 a day was enough to pay for three meals.

“But you must know the timing, technique and tactic to win lah,” he said.

Penang police chief Deputy Comm Datuk Abdul Rahim Hanafi said they had “zero tolerance” against the operators of such illegal centres.

He urged those with information to contact the police hotline at 04-2691999.

“Please, furnish us with details of the premises that offer such activities. We will immediately launch a crackdown,” he said. “I won't allow gambling activities in Penang as it will surely cause social problems.”

Penang municipal councillor Iszuree Ibrahim believed that video game arcades could have abused their licences to run such outlets.

“We will not hesitate to revoke their licences and take stern action against them,” he said, adding that the licences had to be renewed quarterly. - The Star

Malaysian living standards declining?

MOST Malaysians who joined the ranks of the employed in the 1970’s can look back and say that they were better off than those doing so now.

Ever since the 1970’s, the increase in salaries in general has lagged behind rising prices of goods and services across the board.

Take the case of a fresh university graduate who joins the public sector. Back in the 1970’s he would be drawing a basic salary of RM750 per month whether he was a doctor, an administrator or an engineer.

The RM750 may look paltry today but back then the sum was enough to cover almost all living expenses plus some balance for savings for the future.

Today, a fresh university graduate who joins the public sector receives a basic salary of about RM2,400 (a three-fold rise over the 1970’s) but he has to spend frugally in order not to be in debt.

The purchase price of a 24ft x 75ft double-storey terrace house, say in Petaling Jaya, was only RM40,000 back in the 1970’s. Today, the purchase price of a similar type of house in a similar location is around RM800,000 (a 20-fold rise).

A 1,200cc Japanese car back then was priced at RM7,000. Today, a 1,200cc local car is priced at RM50,000 (a seven-fold increase) while an imported Japanese version is priced at RM70,000 or even RM80,000 (more than a 10-fold rise).

A plate of economy rice with four dishes back then cost only 60 sen. Today, a plate of economy rice is not so economical costing at least RM6 (a 10-fold jump in price).

A bowl of wantan mee or prawn mee cost only 30 sen back then. Today, a similar bowl costs at least RM3 (a 10-fold rise).

A long-sleeved shirt back then could be bought for only RM5 (locally-made) or RM9 (foreign brand).

Today, a locally-made similar shirt costs RM60 or even RM70 while a foreign branded shirt is well over RM100.

The purchasing power of today’s ringgit has depreciated about 10 times compared to that of the 1970’s.

This effect of a faster rise in prices over the rise the salaries has led to a decline in the living standards of Malaysians in general over time.

This in turn has resulted in a shrinking middle income group and an expanding low income group in Malaysia.

In the 1970’s, a fresh graduate who was employed could be classified as a member of the middle income group.

Today, an employed fresh graduate belongs to the low income group.

Small wonder many people today resort to borrowing for consumption to live through the day.

Credit card companies or even Ah Long have no shortage of clients. The national consumption debt, both public and private, is rising at an alarming rate.

The BR1M1 and BR1M2 are only quick fixes for temporary relief.

In the long run, efforts to generate a sustained increase in productivity are the only viable solutions to address the problems of price of goods rising faster than salaries.

These include downsizing the public sector, reducing corruption, adopting desired policies like meritocracy, raising educational and training standards, and so on.

OLD TIMER Penang The Star/Asia News Network

Japan right-wing party scores landslide election win

Hawkish Shinzo Abe to return as prime minister, vowing tough stance on China

 

Japan's Yoshihiko Noda,the leader of the losing Democratic Party of Japan, told voters: 'I apologize deeply for our failure to achieve results.' (Issei Kato/Reuters

Japan's Liberal Democratic Party ( LDP) won by a landslide in Sunday's House of Representatives election as it solo secured 294 seats in the election.

The LDP's key ally, the New Komeito Party, got 31 seats, helping the two-party coalition gain 325 seats in the lower house.

The Liberal Democratic Party's (LDP) leader Shinzo Abe served as Prime Minister from 2006 to 2007. (Yuriko Nakao/Reuters) Japan's conservative Liberal Democratic Party returned to power in a landslide election victory Sunday after three years in opposition, exit polls showed, signalling a rightward shift in the government that could further heighten tensions with rival China.

The victory means that the hawkish former Prime Minister Shinzo Abe will get a second chance to lead the nation after a one-year stint in 2006-2007. He would be Japan's seventh prime minister in six-and-a-half years.

Public broadcaster NHK's exit polls projected that the LDP, which ruled Japan for most of the post-World War II era until it was dumped in 2009, won between 275 and 300 seats in the 480-seat lower house of parliament. Official results were not expected until Monday morning. Before the election, it had 118 seats.

The results were a sharp rebuke for Prime Minister Yoshihiko Noda's ruling Democratic Party of Japan, reflecting widespread unhappiness for its failure to keep campaign promises and get the stagnant economy going during its three years in power.

With Japan stuck in a two-decade slump and receding behind China as the region's most important economic player, voters appeared ready to turn back to the LDP.

A serious-looking Abe characterized the win as more of a protest vote against the DPJ than a strong endorsement of his party.

"I think the results do not mean we have regained the public's trust 100 per cent. Rather, they reflect 'no votes' to the DPJ's politics that stalled everything the past three years," he told NHK. "Now we are facing the test of how we can live up to the public's expectations, and we have to answer that question."

The ruling Democrats, which won in a landslide three years ago amid high hopes for change, captured less than 100 seats, exit polls indicated, down sharply from its pre-election strength of 230.

Calling the results "severe," Noda told a late-night news conference he was stepping down to take responsibility for the defeat.

'It was the voters' judgment to our failure to live up to their expectations.'—Prime Minister Yoshihiko Noda on his party's loss

"I apologize deeply for our failure to achieve results," he said. "It was the voters' judgment to our failure to live up to their expectations during our three years and three months of leadership."

The LDP will stick with its long-time partner New Komeito, backed by a large Buddhist organization, to form a coalition government, party officials said. Together, they will probably control about 320 seats, NHK projected — a two-thirds majority that would make it easier for the government to pass legislation.

Noda said a special parliamentary session would be held before year-end to pick a new prime minister. As leader of the biggest party in the lower house, Abe will almost certainly assume that post.

The new government will need to quickly deliver results ahead of upper house elections in the summer. To revive Japan's struggling economy, Abe will likely push for increased public works spending and lobby for stronger moves by the central bank to break Japan out of its deflationary trap.

'Restore some national pride'

Still, some voters said they supported the LDP's vows to build a stronger, more assertive country to answer increasing pressure from China and threats of North Korean rocket launches. Abe has repeatedly said he will protect Japan's "territory and beautiful seas" amid a territorial dispute with China over some uninhabited islands in the East China Sea.
 
The nationalistic, populist Japan Restoration Party is also expected to capture a few seats and perhaps, form a coalition with the new ruling party. (Yuriko Nakao/Reuters)

 "
I feel like the LDP will protect Japan and restore some national pride," Momoko Mihara, 31, said after voting for the Liberal Democrats in the western Tokyo suburb of Fuchu. "I hope Mr. Abe will stand tall."

The LDP may also have benefited from voter confusion over the dizzying array of more than 12 parties.

One of the new parties, the right-leaning, populist Japan Restoration Party, won between 40 to 61 seats, NHK projected. The party, led by the bombastic nationalist ex-Tokyo Gov. Shintaro Ishihara and Osaka Mayor Toru Hashimoto — both of whom are polarizing figures with forceful leadership styles — could become a future coalition partner for the LDP, analysts said.

Ishihara was the one who stirred up the latest dispute with China over the islands when he proposed that the Tokyo government buy them from their private Japanese owners and develop them.

In this first election since the March 11, 2011, earthquake, tsunami and nuclear disasters, atomic energy ended up not being a major election issue even though polls show about 80 per cent of Japanese want to phase out nuclear power.

'We're not like Germany'

In the end, economic concerns won out, said Kazuhisa Kawakami at Meiji Gakuin University.

'The economy has been in dire straits these past three years, and it must be the top priority.'—Shinzo Abe

"We need to prioritize the economy, especially since we are an island nation," he said. "We're not like Germany. We can't just get energy from other countries in a pinch."

The staunchly anti-nuclear Tomorrow Party — which was formed just three weeks ago —captured between six and 15 seats, NHK estimated.

Abe's Political History

During his previous tenure as prime minister, Abe pursued a nationalistic agenda pressing for more patriotic education and upgrading the defence agency to ministry status.

He also insisted there was no proof Japan's military had coerced Chinese, Korean and other women into prostitution in military brothels during Japan's wartime aggression in Asia. He later apologized but lately has suggested that a landmark 1993 apology for sex slavery needs revising.

Abe has said he regrets not visiting Yasukuni Shrine, which enshrines Japan's war dead, including Class-A war criminals, during his term as prime minister. China and South Korea oppose such visits, saying they reflect Japan's reluctance to fully atone for its wartime atrocities.

Tomorrow Party head Yukiko Kada said she was very disappointed to see LDP, the original promoter of the nuclear energy policy — and still the most pro-nuclear party — making a big comeback.

Abe, 58, is considered one of the more conservative figures in the increasingly conservative LDP.

It remains to be seen how he will behave this time around, though he is talking tough toward China, and the LDP platform calls developing fisheries and setting up a permanent outpost in the disputed islands, called Senkakus by Japan and Daioyu by China — a move that would infuriate Beijing.

The LDP wants to revise Japan's pacifist constitution to strengthen its Self-Defence Forces and, breaching a postwar taboo, designate them as a "military." It also proposes increasing Japan's defence budget.

It's not clear, however, how strongly the LDP will push such proposals.

"The economy has been in dire straits these past three years, and it must be the top priority," Abe said in a televised interview. "We must strengthen our alliance with the U.S. and also improve relations with China, with a strong determination that is no change in the fact the Senkaku islands are our territory." - CBCnews

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China Dream a nightmare for others?

New Communist Party chief Xi Jinping’s ‘China Dream’ speech raises concern among foreign countries, especially those locked in territorial disputes with China, such as Japan, Vietnam and the Philippines.

THE “China Dream” is a phrase that has appeared in plays and books, but it recently got an airing at the topmost echelon of power when new Communist Party chief Xi Jinping used it to rally the nation.

Making his second speech since taking over as China’s top leader last month, Xi outlined what he deemed the greatest dream for China: realising the revival of the Chinese nation.

He said: “Everyone is talking about a China Dream. I believe the revival of the Chinese nation is the greatest dream of the nation since modern times. We are at the closest point to the Chinese nation’s resurgence than any time in modern history... and I am sure we will accomplish our goal.”

Xi’s choice of words has sparked a new craze over the phrase China Dream, with netizens rendering their own definitions of “zhongguo meng”, such as a corruption-free country.

Many believe the new leader was trying to mobilise domestic support for his agenda of continuing reform and opening up, by inspiring people towards a China Dream – the title of a 1987 play about a Chinese couple dreaming of success in the United States.

“It also serves to galvanise the people’s support and rally the public around the new administration’s economic and political agenda,” said Professor Wang Dong, an international studies expert at Peking University.

But a closer analysis of Xi’s speech makes one wonder if there is cause for concern for foreign countries, especially those locked in territorial disputes with China, such as Japan, Vietnam and the Philippines.

First, he chose to make the speech at the National Museum, where he and six other members of the apex Politburo Standing Committee had viewed the iconic China’s Road To Renaissance exhibition late last month.

Visitors tend to spend at least two hours at the exhibition, which begins with narratives of China as a weak country that suffered humiliating defeats and the loss of sovereign territories to foreign powers around the early 1900s.

It then traces the country’s efforts to rise from the ashes, which gained speed after the reforms and opening up under late leader Deng Xiaoping in 1980s.

Given the symbolic setting, the natural fear is that part of Xi’s China Dream may include taking a tougher stance towards foreign countries that China perceives to be threatening again to grab its territories.

There were hints in his speech when he said: “Looking back at our past, we can see that if we are lagging behind, we will suffer beatings. Only when we advance, then can we be strong.”

Also, the phrase “China Dream” evokes memories of a 2010 book by a People’s Liberation Army officer, which advocated a speedy strengthening of China’s military might or risk being sidelined by the US.

In his Chinese-language book, The China Dream, Senior Colonel Liu Mingfu wrote that “as long as China seeks to rise to become world No. 1... then even if China is more capitalist than the US, the US will still be determined to contain it”.

“If China in the 21st century cannot become world No. 1, cannot become the top power, then inevitably, it will become a straggler that is cast aside,” added Col Liu, who is a professor at the National Defence University.

If Xi was indirectly backing Col Liu’s beliefs, it could hint at more aggressive moves by Beijing in dealing with foreign countries in future.

For some, it may have already happened. On the day Xi sketched his idea of the greatest dream for China, news broke that police in southern Hainan province would get new powers to intercept foreign ships in the contested South China Sea.

Though it is unclear whether the new rules taking effect next month would be limited to only Hainan island’s territorial waters within 12 nautical miles, the move has given some of its neighbours sleepless nights.

It has also unnerved non-claimant countries such as Singapore, which places great value on regional peace and freedom of navigation.

To be fair, China is not the only claimant state stirring up the waters in the maritime hub lately. Others have taken similar actions.

Also, to be sure, some believe that Xi’s China Dream pertains mostly to improving the people’s lives through better jobs and better rule of law.

In that sense, it does not differ much in essence from the American Dream, which promises equal and fair opportunities for all, in pursuit of a better life. Or the Singapore dream, which epitomises the prospects of a successful life gained through hard work.

But niggling concerns remain, given that China’s new commander-in-chief could fan or yield to more nationalistic sentiments by taking a more hawkish foreign policy stance, particularly if domestic political problems persist.

Said Professor Taylor Fravel, a China expert at the Massachusetts Institute of Technology: “Xi’s speech suggests that he may be more willing to invoke nationalism, but at this point it is too soon to tell how this will affect China’s foreign policies.”

After decades of promising a peaceful rise, it would be a shame if Beijing starts to grow its might at an unhealthy pace or flex it aggressively, which could worsen already frayed ties with its neighbours and destabilise the region.

While China and its people are entitled to pursuing their dream after decades of setbacks, it is also in the country’s interest to continue to act like a responsible global power by showing sensitivity to others in the region.

A dream for China should not become a nightmare for the rest of the world.

By Kor Kian Beng, China Correspondent  The Straits Times/Asia News Network

New beginning in Malaysian strata property management?

With more and more people living in stratified buildings, the new Strata Management Act is timely in helping to reduce animosity among residents and owners during dispute resolutions.

Act for peace: An effective and efficient dispute resolution mechanism will help promote peace and good neighbourliness in stratified buildings.

LAST Sunday, I attended the annual general meeting (AGM) of the management corporation of an upmarket condominium as a proxy for my wife. Its last AGM was held in September last year.

This AGM was by far the most heated and disorderly since the management corporation was set up some six years ago. A fight almost broke out despite the presence of representatives of the Commissioner of Buildings (COB) and the police.

Let me now share with you my personal thoughts about the AGM, before examining whether the new Strata Management Act (SMA), when it comes into force, will help minimise and remove such animosity which appears to be rather prevalent and common among occupants living and undertaking business in stratified buildings.

In fact, trouble was already brewing before the AGM. In the AGM notice sent to owners of all the 170 parcel units, all the three outgoing 2011/2012 Council (CM2012) members – in their 30s (let’s call him CM1), 60s (CM2) and 70s (CM3) – jointly signed and attached a three-page letter containing allegations of impropriety against the previous Council (CM2011) members.

The CM2011 members, through their lawyers, demanded that their written explanatory response also be circulated to all the parcel owners before the AGM. This was refused.

Drama-charged

The situation was aggravated when CM2, the outgoing CM2012 chairman, used his welcoming speech, delivered in Mandarin, to reply to CM2011 members’ written explanatory response, which was also not circulated during the AGM. He also attempted to make more allegations of impropriety against CM2011 members until I intervened because the latter had not first been given any opportunity to be heard. Procedurally also, this should not have been done before first electing the chairman of the AGM.

I also observed that each time someone spoke up against any resolution proposed by CM2012, CM3 would shout and try to interrupt and intimidate the speaker. A fight almost ensued when some parcel owners confronted CM1 and CM3 during the break. They wanted to know why their parcel unit numbers had been displayed on the notice board as not having settled a one-time payment of RM400 for upgrading work, approved in the 2010 AGM. The parcel owners felt aggrieved that they had been publicly shamed, claiming and showing proof that at the time the notice was put up, CM1, CM2 and CM3 as Council members themselves had failed to pay maintenance charges for a few months, but their parcel unit numbers were not mentioned in the said notice. CM3 then raised his walking stick cum foldable chair, wanting to strike his fellow septuagenarian CM2011 member who questioned him until he was restrained by police and the former’s wife.

(Interestingly, I was informed by the COB that a fight virtually broke out before him during the extraordinary general meeting of a nearby condominium on Oct 28 when chairs were also thrown! Fortunately, goodwill prevailed when the injured decided not to press any criminal charges.)

The AGM then proceeded with election of 2012/2013 Council members. The House decided to elect only seven Council members. Eight owners were nominated. When the COB suggested that voting could be dispensed with if the House decided to change the number to eight, CM2 strenuously objected. CM2 vociferously proclaimed that he could not accept the CM2011 Chairman into the new Council. When one of the eight said he would withdraw so that the number could be reduced to seven, CM2 objected too because that would mean CM2011 Chairman would get elected. It was obvious to everyone present that there is a lot of bad blood between CM2 and CM2011 Chairman. Then almost half of those present who are owners living in the condominium walked out in protest.

Nevertheless CM1, CM2 and CM3 were elected even though it was obvious that they did not enjoy any support from the live-in owners. Their support came, instead, from the proxies. Twelve proxies who were present actually represented owners of 48 parcel units. CM1, CM2 and an estate agent who is also an owner (EA), were also each a proxy to several parcel unit owners. It was abundantly clear that these proxies were mainly CM2’s friends.

When challenged whether these proxies knew who the principals/owners they were representing, the mainly Mandarin-speaking group just remained silent. But CM2 openly instructed them on how to vote and they voted according to his instructions. If voting had been done by show of hands, CM1, CM2 and CM3 could have lost, but it was done by poll where the proxies’ votes are calculated according to all their principals’/owners’ shares of the parcel units.

In fact, this expressly went against the COB’s circular that a person can be a proxy to only one owner at any one general meeting. According to the management office, just like last year, CM2012’s supporters’ completed proxy forms were submitted in bulk by CM2 and EA, that is, they were not submitted individually by either the owners/principals or their proxy holders. No verification was also done whether the owners/principals did personally execute the proxy forms or whether the owners/principals and proxies knew each other.

It is sad to see that the live-in owners who were present were powerless to decide on the affairs of their condominium which they know most. Instead, these outsiders (one of them a former gardener at the condominium), who appeared bored and lost throughout the proceedings when English was used, had the ultimate say.

To my mind, the entire AGM is invalid as the legality of the proxies’ appointment and voting is seriously in doubt because it has also gone against the law of agency.

In fact, I had raised this issue of manipulating the proxy voting system even way back in June last year in my article, “Resolving tenancy disputes” (Sunday Star, June 12, 2011). I also subsequently had a brief SMS discussion with the Housing and Local Government Minister Datuk Seri Chor Chee Heung.

I am glad that the SMA has now made the one-proxy-one-owner rule clear in paragraph 18 of the Second Schedule. However, in light of the above and the relaxation of quorum requirement, paragraph 18 should be amended to state that only an owner’s immediate family member, tenant or attorney (appointed by way of a power of attorney) is qualified to be his proxy. If the owner is a corporation or organisation, the same principle should also apply in that there should be a close nexus between the owner and his proxy.

This will also compel owners to take more responsibility and a keen interest in the management affairs of their properties by making an effort to attend the general meetings. Such an amendment is not required to be tabled before Parliament as the minister is empowered to do so under Section 152 of the SMA.

Timely law

That said, assuming the SMA is in force now, the above fiasco could have been avoided. Under the new law, the Council will be known as a management committee and no committee member shall hold office for more than three consecutive terms. Also, a committee member will be deemed to have vacated his office if his conduct brings discredit on the management committee.

Most importantly, any dispute or altercation among owners living in stratified buildings can be resolved through the Snatrata Management Tribul. Hence, the Tribunal ought to be set up expeditiously unlike the Strata Titles Board which was never set up since the enabling provision was first inserted in the Strata Titles Act, 1985 (Act 318) in December 2000.

With an effective and efficient dispute resolution mechanism in place, this will help promote peace and good neighbourliness in stratified buildings. A lot of precious time can also be saved during general meetings. For example, in the Dec 9 AGM, CM2011 and CM2012 members seemed to be more obsessed with each other instead of discussing real issues such as lax enforcement of House Rules, the recent robbery-cum-rape case that reportedly took place and the appearance of a large crack on the exterior wall of the building next to one of its columns.

Similarly, the performance of the managing agent engaged by CM2012 at RM8,000 per month was not discussed. In my view, the performance of CM2011 members in managing the condominium is better than the said managing agent’s. Not to mention, they did it voluntarily. In this respect, I must register my agreement with Chor that registered valuers should not have monopoly over the management of stratified properties because strata owners must be allowed to have a choice and the right to decide who is best to manage their building.

As a whole, congratulations are in order for Chor, Datuk Seri Douglas Uggah Embas, Minister of Natural Resources and Environment (NRE) and their ministry officials in revamping the laws relating to strata management. When the SMA comes into force, the Housing and Local Government Ministry will take over from the NRE in monitoring the management of all stratified buildings and the operation of the SMA. Act 318 has also been amended and the Building and Common Property (Maintenance and Management) Act 2007 will be repealed.

Time will only tell how successful the SMA is in coming to grips with multifarious problems faced by those who live and do business in stratified buildings. But it cannot be gainsaid that this new law marks a new beginning of a comprehensive legal framework in strata management.

Comment by Roger Tan

> The writer is a former chairman of the Conveyancing Practice Committee of the Malaysian Bar Council. 

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Singapore private residential property market encouraging

Yeoh with a model of the Village At Pasir Panjang.

 

SELANGOR Dredging Bhd (SDB) sees Singapore’s private residential property market as still encouraging despite a cut in the republic’s growth forecast.

Its communications and corporate affairs manager, Yeoh Guan Jin, says private residential properties are still being sought after in the city state by Singaporeans and foreign buyers.

He says although the republic might be experiencing a slowdown due to the economic uncertainties in the eurozone and the United States, Singapore will be able to weather the situation.

“Mind you, there are still many wealthy Singaporeans and foreigners with Singapore permanent residents status looking for private residential properties here,” says Yeoh at a sales gallery showcasing SDB’s latest freehold residential project in Singapore, Village At Pasir Panjang.

Yeoh says the company is optimistic that the new project will receive positive response, similar to its completed and on-going project in the republic.

He says as Singapore continues to welcome and attract affluent people and expatriates from all over the world, demand for private residential properties here will remain good.

Yeoh adds Singapore’s close proximity with Malaysia is an added advantage for the company to attract Malaysians looking to invest in properties overseas.

“Our proven track record in the Klang Valley area and Singapore’s high transparency level will attract affluent Malaysians as well as foreigners to our project,” he says.

Yeoh says the company is attracted to launch a project in the western district of Singapore due to the availability of the land for redevelopment purposes.

He says SDB will continue to look for new sites from time to time for future development in other parts of Singapore as there are many land parcels available for redevelopment in the republic.

Village At Pasir Panjang, located at Pasir Panjang Road on 0.99ha, comprises nine five-storey blocks with attic and a basement car park.

The U-shaped development consists of 148 units of two, three and four-bedroom apartments with built-up area of 818 sq ft-2,303 sq ft and the price starts from S$1.4mil or S$1,650-S$1,660 per sq ft.

Works on the project with gross development value (GDV) of S$260mil will start next year with expected completion in the fourth quarter of 2016.

“We want to bring back the kampung atmosphere in our latest project; hence the name Village and also to reflect Pasir Panjang’s past which was once a kampung area,” says Yeoh.

He explains the architectural façade of the residences and the clubhouse draw references from the abstracted and interpreted “black and white” houses of the 1950s.

Yeoh says that apart from catering for owners-occupiers looking for properties in the western district of Singapore, those buying as an investment could expect to fetch good rental.

He says a two-bedroom apartment in the Pasir Panjang area fetches between S$3,000 and S$4,500 per month, while the monthly rental for a three-bedroom ranges from S$5,500 to S$6,500.

“The rental for a four-bedroom unit starts from S$7,000 and above, and I personally feel it is good investment for Malaysians,” says Yeoh.

SDB’s project in Singapore, the 22 units of low-rise condominiums called Jia at Wilkie Road with GDV of S$55mil was completed in December 2010.

It is currently developing the high-rise condominium project – Gilstead Two at Gilstead Road – consisting of 110 units with GDV of S$200mil.

The project is expected to be completed in the last quarter of 2014.

Other projects are Residences at Balestier Road in district 12 – the 18-storey apartment block consists of 104 apartment units and 10 retail shops and offices with GDV of S$102mil and is slotted for completion in the fourth quarter of 2015.

Hijauan On Cavenagh, located on Cavenagh Road in Singapore’s prestigious District 9, is expected to be completed in the third quarter of 2015.

Hijauan is within walking distance from Orchard Road and a tree-lined passageway behind the Istana and adjacent to 25,000 sq ft of lush state land.

The Istana is the official residence and working office for both the president and prime minister.

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Singapore job growth high, unemployment low, vacancies rise despite more layoffs

Singapore job growth high, unemployment low, vacancies rise despite more layoffs

Job growth remains high despite more layoffs

SINGAPORE: Employment growth stayed high, even though layoffs rose in the third quarter, said the Manpower Ministry PHOTO: ALPHONSUS CHERN 

Job openings increased, bucking the declines in the preceding two quarters. The seasonally adjusted vacancies rose by 13 per cent over the quarter to 51,500 in September this year. For every 100 job seekers, there were now 125 job openings, up from 91 in June and 105 in March this year.

But layoffs rose after declining in the preceding two quarters. This was one of the few higher quarterly redundancy figures reported in post-recessionary periods, but they remained substantially below recessionary highs.

The labour market in the city-state remained tight supported by domestic-oriented activities and tightening of foreign manpower controls, according to a report released by the Manpower Ministry’s research and statistics department.

The report entitled, Labour Market, Third Quarter 2012, said that employment growth remained high, while unemployment stayed low.

“Although layoffs rose in the third quarter, they remained substantially below recessionary highs,” it said.

It said job openings increased, resulting in a rise in the ratio of vacancies to job seekers.

The report said total employment grew 26,200 in the third quarter this year, moderating from an increase of 31,900 a year earlier and 31,700 in the second quarter.

For the first nine months this year, employment grew 85,100 from 85,000 a year earlier, it said.

It said the growth in employment in services slowed to 12,700 in the third quarter from 21,200 in the corresponding period last year, while in manufacturing it was down from 3,900 to 3,700. Boosted by public infrastructure projects, construction continued to register high employment increase of 9,700, up from 6,700 a year earlier, it said.

The report said unemployment rates remained low, reflecting high manpower demand amid the tightening of foreign manpower controls.

The seasonally-adjusted overall unemployment rate dipped to 1.9% in September from 2% in the year-ago quarter, while the unemployment rates for residents and Singapore citizens were unchanged at 2.8% and 3% respectively.

Layoffs rose after declining in the preceding two quarters. This was one of the few higher quarterly redundancy figures reported in post-recessionary periods, but they remained substantially below recessionary highs. — Bernama

Labour Market, 3rd Quarter 2012

Unemployment Remained Low While Job Vacancies Increased

1. The labour market remained tight supported by domestic-oriented activities and tightening in foreign manpower controls. Employment growth stayed high, while unemployment remained low. Although layoffs rose in the third quarter, they remained substantially below recessionary highs. Meanwhile, job openings increased, resulting in a rise in job vacancies to job seekers ratio. These are the key findings from the “Labour Market, Third Quarter 2012” report released by the Ministry of Manpower’s Research and Statistics Department.
   
   Main Findings 
2. Total employment grew by 26,200 in the third quarter of 2012, moderating from the growth of 31,900 in the same period last year and 31,700 in the second quarter of 2012. In the first nine months of 2012, total employment grew by 85,100, similar to the increase of 85,000 in the corresponding period last year.
3. The growth in employment in services slowed from 21,200 in the third quarter of 2011 to 12,700 in the third quarter of 2012 and manufacturing from 3,900 to 3,700. Boosted by public infrastructure projects, construction continued to register high employment increase of 9,700, up from 6,700 in the same quarter last year.
4. Unemployment rates remained low, reflecting high manpower demand amid the tightening in foreign manpower controls. The seasonally adjusted overall unemployment rate dipped marginally to 1.9% in September 2012 from 2.0% a quarter ago, while the unemployment rates for residents and Singapore citizens were unchanged at 2.8% and 3.0% respectively.
5. Resident long-term unemployment rate declined slightly over the year from 0.5% in September 2011 to 0.4% in September 2012, returning to its low (for September periods) in 2007 before the 2009 recession.
6. Layoffs rose after declining in the preceding two quarters. This was one of the few higher quarterly redundancy figures reported in post-recessionary periods, but they remained substantially below recessionary highs.
7. Job openings increased, bucking the declines in the preceding two quarters. The seasonally adjusted vacancies rose by 13% over the quarter to 51,500 in September 2012. With the rise in job vacancies, the seasonally adjusted ratio of job vacancies to unemployed persons rose over the quarter in September 2012, after declining in the two preceding quarters. For every 100 job seekers, there were now 125 job openings, up from 91 in June and 105 in March 2012.
   
   For More Information
8. The report is available for online on MOM's Statistics and Publications webpage. 

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It’s a Smart, Smart, Smart World

 The country that tops the IQ charts isn't the US or in Europe, it's Singapore

Before I get to the dreary budget debates in Washington, here’s a bright spot of good news: We’re getting smarter.

Damon Winter/The New York Times

Nicholas D. Kristo

My readers are all above average. But if I ever had average readers, they would still be brilliant compared with Americans of a century ago. 

The average American in the year 1900 had an I.Q. that by today’s standards would measure about 67. Since the traditional definition of mental retardation was an I.Q. of less than 70, that leads to the remarkable conclusion that a majority of Americans a century ago would count today as intellectually disabled. 

The trend of rising intelligence is known as the “Flynn Effect,” named for James R. Flynn, the New Zealand scholar who pioneered this area of research. Countless other scholars worldwide have replicated his findings, and it is now accepted science — although there is still disagreement about its causes and significance. 

The average American I.Q. has been rising steadily by 3 points a decade. Spaniards gained 19 points over 28 years, and the Dutch 20 points over 30 years. Kenyan children gained nearly 1 point a year. 

Those figures come from a new book by Flynn from Cambridge University Press called “Are We Getting Smarter?” It’s an uplifting tale, a reminder that human capacity is on the upswing. The implication is that there are potential Einsteins now working as subsistence farmers in Congo or dropping out of high school in Mississippi who, with help, could become actual Einsteins. 

The Flynn Effect should upend some of the smugness among those who have historically done well in global I.Q. standings. For example, while there is still a race gap, black Americans are catching up — and now do significantly better than white Americans of the “greatest generation” did in the 1940s. 

Another problem for racists: The country that tops the I.Q. charts isn’t America or in Europe. It’s Singapore, at 108. (The reason may have to do with Singapore’s Confucian respect for learning and its outstanding school system.) 

None of this means that people today are born smarter. While I.Q. measures something to do with mental acuity, it’s a rubbery and imperfect metric. It’s heavily shaped by environment — potential is diminished when children suffer from parasites or lead in air pollution. As a result, the removal of lead from gasoline may have added 6 points to the I.Q. of American children, according to Dr. Philip Landrigan, a pediatrician and epidemiologist at Mount Sinai School of Medicine. 

Flynn argues that I.Q. is rising because in industrialized societies we give our brains a constant mental workout that builds up what we might call our brain sinews. 

“The brains of the best and most experienced London taxi drivers,” Flynn writes, citing a 2000 study, have “enlarged hippocampi, which is the brain area used for navigating three-dimensional space.” In a similar way, he argues, modern life gives our brains greater exercise than when we were mostly living on isolated farms. 

It’s not that our ancestors were dummies, and I confess to doubts about the Flynn Effect when I contemplate the slide from Shakespeare to “Fifty Shades of Grey.” Likewise, politics does not seem to benefit: One academic study found a deterioration in the caliber of discussions of economics in presidential debates from 1960 to 2008. 

But Flynn argues that modern TV shows and other entertainment can be cognitively demanding, and video games like those of the Grand Theft Auto series probably require more thought than solitaire. (No, don’t call the police. My teenage kids are not holding me hostage and forcing me to write this paragraph.) 

Back to the debates in Washington. To me, the lesson from this research is the vast amount of human potential globally that is available if we can nurture and stimulate kids who now get neglected. 

One challenge is to preserve foreign aid. Some 61 million children around the world still don’t attend even primary school, and President Obama in his 2008 campaign was right to propose a global education fund, in part as an alternative to extremist religious schools. I’m hoping the idea doesn’t get dropped forever. 

The even greater challenge is nation-building at home at a time when funding for schools is being slashed, about 7,000 high school students drop out every day, and there are long waits to get into early-childhood-enrichment programs like Head Start. Literacy programs can help break cycles of poverty and unleash America’s potential — and a single F-35 fighter could pay for more than four years of the Reading Is Fundamental program in the entire United States. 

As we make hard budget choices, let’s remember that the essential fact of the world is that talent is universal and opportunity is not. I hope we’re finally smart enough to try to remedy that.

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Japan's war planes F-15 fighter jets against a Chinese suveilance plane over Diaoyu Islands

This handout picture taken by the Japan Coast Guard on Thursday shows a Chinese government plane flying near the Diaoyu Islands in the East China Sea. Japan scrambled fighter jets after the Chinese plane entered airspace over the islands at the center of a dispute between Tokyo and Beijing. Photo: AFP

China's Ministry of Foreign Affairs said Thursday that it is "normal" for a Chinese marine surveillance plane to patrol the airspace over the Diaoyu Islands in the East China Sea, prompting Japan to scramble fighter jets to the area.



According to a statement on the website of the State Oceanic Administration (SOA), China's Haijian B-3837 aircraft reached the airspace over the Diaoyu Islands at 10 am Thursday, joining the flotilla of marine surveillance ships Haijian-50, Haijian-46, Haijian-66 and Haijian-137 to patrol the area.

The SOA said that during the patrol, the flotilla stated the Chinese government's position on the islets to the Japanese vessels, demanding they leave the area. On its website, it also posted two photos of the islands shot from the airplane.

The aircraft is a twin-engine propeller plane used for surveillance or monitoring of fishing activities.

The incident prompted Japan's military to scramble eight F-15 fighter jets, Japan's Defense Ministry said. Japanese officials later said the Chinese aircraft had left the area, Reuters reported.

The Japanese Defense Ministry said it was the first time that a Chinese plane had entered "Japanese airspace" since Japan started recording similar incidents in 1958, Kyodo News reported. Japan later protested to China over the incident.

China's foreign ministry spokesman Hong Lei told a regular press briefing Thursday that it's normal for China's marine surveillance planes to fly in the airspace over the Diaoyu Islands, as Diaoyu Island and its affiliated islets are China's inherent territory.

"China demands Japan stop its illegal activities in the waters and airspace of the Diaoyu Islands," Hong stated.

Han Zhiqiang, charge d'affaires at the Chinese embassy in Tokyo, said China hadn't accepted the Japanese side's diplomatic representation over the incident, the China News Service reported.

Liu Jiangyong, a vice dean of the Institute of Modern International Relations at Tsinghua University, told the Global Times that after the US handed Okinawa over to Japan in 1972, Tokyo brought the Diaoyu Islands into its Air Defense Identification Zone (ADIZ).

"Sending a plane to the area was a breakthrough in terms of challenging Japan's ADIZ, which was arbitrarily drawn up by Tokyo a long time ago," said Liu, noting that the struggle over the Diaoyu Islands would enter a new phase following China's success in carrying out routine patrols in the waters of the islets.

Liu also highlighted the increasing risk in terms of conflicts brought about by air confrontations.

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