It takes all kinds to dominate in a world obsessed with economic might and political power.
AS a young boy growing up in the 1960s, I watched many Western movies and TV shows about cowboys and Red Indians, and as expected of a naïve and ignorant kid, I cheered for the “good” guys – the cowboys.
And because they were portrayed as such, the Red Indians were the “bad” guys to me. They were the savage lot, while the Caucasian men were the civilised group trying to help them. And routinely, the Red Indians would be defeated.
As I reached my teenage years and read more about the West, I realised that my supposed heroes were the ones who robbed these natives of their land, violated treaties and consigned the Red Indians to living on reservations.
The most famous Red Indian, Geronimo, the head of the Chiricahua Apaches, and his men were arrested and despatched to Florida as prisoners of war. Some of them were even discarded at crocodile-infested swamps.
Fast forward to contemporary Hollywood movies – the modern-day bad guys are always the Russians, Albanians and Arabs.
They are usually portrayed as one of brutal spies, criminals, human traffickers, drug dealers and terrorists, and in more lurid plots, all the above.
In The Equalizer, Denzel Washington, who plays a former intelligence agency man latterly driving a cab, goes after sadistic Russian gangsters and predictably, decides to kill all of them – in equally brutal ways.
In the John Wick movie series, Keanu Reeves also goes ballistic going after some Russians.
For some reason, all these ex-operatives are reclusive, divorced or widowed, still connected to their agencies, and as always, their loved ones get harmed (mostly killed) by the Russians, which invariably leads them to needing to settle the score.
Albanians hit the big time after the 2008 movie, Taken, which starred Liam Neeson, who plays Bryan Mills, another retired CIA operative whose teenage daughter and friend get kidnapped by human traffickers (Albanians) while holidaying in France.
In Taken 2, the 2012 sequel, the film follows the family to Istanbul, only to be kidnapped yet again, along with his former wife, by the father of one of the men he killed while saving his daughter two years previously.
It wasn’t just the Albanians who suffered from bad press as until today, my wife still refuses to go to Istanbul – as a result of the movie.
Fortunately for me, I have been to Albania. It’s a beautiful country with good people, and nothing like what the movies depict.
In the case of Arabs, we are accustomed to seeing them portrayed in poor light. They were womanising oil sheikhs at one time and are now mostly barbaric terrorists. Scenes with them are stereotypically sound tracked to the call of the Azan.
Mexicans, typically, are drug dealers. Likewise, Colombians, Cubans and Venezuelans. Well, in the movies, at least.
The hip hop loving African Americans in the United States, with their bling and bad attitude, are a dangerous lot. And thanks to their racist slurs, smaller Asians like us avoid antagonising them.
The latest bad guys are the Chinese. However, Hollywood isn’t quite ready to cast them as the standard stereotype because they are explicitly aware of mainlanders having plenty of clout.
Experts predict that by 2020, China will be the world’s largest cinema market, with box office revenue expected to leap from US$9.9 billion (RM41bil) in 2018 to US$15.5 billion (RM65bil) by 2023, according to a report by PricewaterhouseCoopers (PwC). In the first quarter of 2018, China surpassed the US in box office revenue for the first time.
It has been reported that China is presently Hollywood’s biggest foreign market, and according to projections by PwC, this year, the Chinese box office will likely rake in US$11.05 billion (RM46bil) compared to ticket sales in the US, which is expected to amount to US$2.11 billion (RM8.8bil).
So, unlike with other nationalities, Hollywood won’t mess around with the Chinese anytime soon.
Failed Hollywood movies, like The Terminator: Dark Fate, which starred Arnold Schwarzenegger, were rescued by the box offices in China.
Hollywood understands the power of money well. In fact, Christopher Nolan’s Dark Knight wasn’t even submitted for Chinese approval because of a dubious Chinese businessman character in the 2008 Batman movie. But in the Western media, whether in the US, Europe or Australia, China is being painted negatively, in a blatantly concerted way.
Everything from Huawei, to face recognition and to Xinjiang, and now Coronavirus, China has been the bogeyman.
The elephant-in-the-room theory is that the US wants a “freed Tibet” because it’s angling to build an air base that can send jets into China within minutes.
Adding to the spin doctoring, rioters and vandals in Hong Kong are relentlessly referred to as pro-democracy protestors to burn in the minds of the audience that they are the good guys.
HK policemen are painted as brutal when, ironically, tougher tactics are applied elsewhere, including by the American police.
The US is disturbed by the South China Sea, although it’s thousands of miles away and isn’t even a claimant. It’s strange when you think it has military bases in the Philippines and the vicinity.
The disdain for China even turned comical at some point. When a group of Vietnamese were found dead in a UK truck last year, newsfeeds initially revealed they were Chinese.
As the media scrambled for answers, one reporter, who was pressed for an answer, told his live audience that they could possibly be Chinese who fled to the UK because of their protests over the Xinjiang issue.
The underlining reason is simple – the Western media no longer wants to report about China in a balanced way, resenting its growth to become an economic power in just 30 years as it sits behind the US as the second largest economy in the world.
The narrative is the same: China should be feared and doubted, while Chinese scholars in the US ought to be treated as spies. And advanced technology better than that in American products be branded spying devices.
Hostility towards China has intensified and with the outbreak of Covid-19, there is no silver lining, what with spins of resenting Chinese president Xi Jinping, concealing figures of casualties, cover up, poor food preparation and filthy eating habits. And there’s also the racist perception that Chinese people are to be avoided and cooked up stories of uprising against Xi Jinping.
Of course, there’s also the twisted religious angle – that the Chinese are being punished, either for their eating habits, or again, the treatment of Muslims in Xinjiang.
The war against China is being waged in various fronts because it is deemed to have threatened the international order dominated by the US and its allies.
It doesn’t matter if the US is led by Donald Trump or a Democrat president, which could be worse, because the end game against China will simply be the same.
The Coronavirus epidemic has damaged the image of the Chinese. Their invincibility and ascent have taken a knock, so Xi Jinping must prove that China can beat this killer virus soon.
It’s a bad time for China nationals still travelling, but then again, even ethnic Chinese elsewhere are affected.
The average American believes everything they watch on CNN or Fox TV. No one should be surprised since only 45% of Americans – or 41.8 million – have been overseas. That’s an improvement, being 9% more than in 2018.
There is a far bigger picture here, one rooted in the concept of master and servant.
Not too long ago, China was a far-away mysterious country where cheap toys, low grade garments and fireworks came from. In the last couple of decades, the most populous country learnt technology well from the west, like how Japan did in the 1980s.
Today, the republic is on the cusp of achieving world domination. And that’s not a point lost on any superior or inferior nation.
Blockchain endorsement: Xi said China will
increase investment in blockchain technology after chairing a study
session last week on developing the industry, state-owned Xinhua
reported.— AP
https://youtu.be/hfNcct7ZfbE
https://youtu.be/KoDD2Yk0bjE
Shenzhen tech index surges 5.3%, the most in eight months
Investors urge companies to develop blockchain businesses
BEIJING: Chinese investors snapped up every blockchain-related stock in sight after President Xi Jinping said Beijing wants to speed up development of the technology.
The gains were widespread yesterday, with Insigma Technology Co and Sinodata Co among more than 60 tech shares surging by the daily limit in Shanghai and Shenzhen.
The excitement coincided with a 26% rally in Bitcoin, and also boosted stocks with more tenuous connections to blockchain, like baby-food producer Beingmate Co and selfie-app developer Meitu Inc.
Xi said China will increase investment in blockchain technology after chairing a study session last week on developing the industry, state-owned Xinhua reported late last Friday.
The market reaction shows how far an endorsement from Xi can go in China, where high-level officials yesterday began their first major policy meeting since early 2018.
“Most of these companies, especially those that are just beginning to state their connection with blockchain today, are trying to take advantage of the hype, ” said Li Shiyu, fund manager at Guangdong Xiaoyu Investment Management Co. “It shows how much excitement can be triggered by something stressed as a priority by the top man himself.”
The Shenzhen Information Technology Index closed 5.3% higher yesterday, its biggest advance in eight months.
Hundsun Technologies Inc, Easysight Supply Chain Management Co, YGSOFT Inc and dozens more companies with officially registered blockchain businesses rose by the 10% limit.
In Hong Kong, traders singled out Meitu due to its plans for an encrypted user-identification system.
The shares surged as much as 30%. Pantronics Holdings Ltd - which earlier this month said it will change its name to “Huobi Technology”, a reference to a digital currency exchange - rallied as much as 67%.
American depositary receipts of Chinese blockchain companies also surged last Friday.
Investors pressured other firms to jump on the blockchain hype, using an online Q&A platform to submit thousands of questions on their plans to use the technology.
“Please proactively make expansion plans in blockchain to jump on state policies - doing so would be the best reward to investors, ” urged one shareholder of development-store operator Hunan Friendship & Apollo Commercial Co. — Bloomberg
Broad measures spelt out under Budget 2020 will likely sustain the economy, if there is no further escalation in trade fights.
A glimmer of hope emerged after the US outlined the first phase of a deal to settle some issues related to trade, but there is a lingering suspicion that China could be just buying time as it will most likely not concede to any loss of sovereignty.
China is developing its own ecosystem that could be “outside the reach” of the US, and it is possible that the time bought with such rearguard actions may allow China to achieve its aims.
Malaysia, a trade dependent economy, can only hope that it all works out well, if it can integrate into both ecosystems, said Inter-Pacific Securities head of research Pong Teng Siew.
More stimulus measures would be undertaken should the global economy worsen and in the worst case scenario, Malaysia would have room to spend more if it increases the budget deficit, currently at 3.2% of the gross domestic product (GDP).
The worry is that a further deterioration in global trade tensions may push the global economy into recession. If that does not happen, these Budget 2020 measures should be able to sustain the economy, according to RHB Research Institute chief Asean economist Peck Boon Soon.
Given the external headwinds that continue to pose more downside risks, it looks like Budget 2020, which attempts to spread out its positive effects, has been designed to brace for rough times.
Some positive impetus could be derived from measures to support tourism, construction and infrastructure, as well as small and medium scale enterprises (SMEs), said AmBank Research head Anthony Dass.
Tourism-related businesses such as food and beverage, accommodation, travel and transport, shopping and entertainment will likely benefit.
Recognising the importance of SMEs in driving growth, a string of measures to facilitate their financing needs, ease of doing business, faster adoption of high technology and green initiatives, should also bode well.
The bottomline is that resources are limited while the government still aims for fiscal consolidation and repayment of all debts.
Spreading out these scarce resources will probably succeed in paring off any broad-based slowdown, but it will be hard to make a dent when the sense of a loss in economic momentum is gradually settling in, said Pong.
More measures are required to stimulate the economy but in view of the gloomy global outlook and domestic issues, it is still overall, a good budget.
However, the allocation between capital and operating expenditure is still imbalanced; there is too little capital expenditure and there appears to be ‘little effort’ to reduce operating expenditure.
This will have a long term effect, especially in an aging society, according to Areca Capital CEO Danny Wong. In view of concerns over the lack of investments and falling revenue, efforts to boost foreign direct investments and tourism are welcome but more robust steps are required.
A correction in property prices may be a remedy for the overhang and inaffordability issues especially among young people.
The budget tries to forestall a price pullback, which would affect developers stuck with high land prices, by allowing foreigners to fill the demand gap.
But demand has evaporated, partly caused by the migration of mid-level talent and delays in household formation, the driver of long term demand and new home construction. Developers, lulled by the padding of demand through low interest rates for borrowers, high financing margins and easy access to debts, find it hard to lower prices.
They had thought the elevated level of demand was sustainable but it was not. Reduced prices may mean less profits but possibly a lifeline by way of cashflows, and may help restore delays in household formation and loss of talent, said Pong.
A worrying trend is that more and more young Malaysians are moving out of the country in search of jobs.Even mid-level expertise and talent is migrating; previously, it was mostly those who were highly mobile internationally.
A major cause is the lack of growth in real purchasing power.
Is the projected GDP growth of 4.8% achievable?
With the government continuing its spending and development initiatives, growth should remain robust, supported by services and construction, higher production from agriculture and mining. But manufacturing is expected to moderate.
Malaysia can achieve its 4.8% growth target, said Hong Leong Bank chief operating operating officer, global markets, Hor Kwok Wai.
However, in view of slower world GDP growth of 2.8%, AmBank Research expects growth of 4.0% with an upside of 4.3% for Malaysia.
Coming up with a further set of stimulus, should things worsen, may be a challenge.
Columnist Yap Leng Kuen is watchful of the tech war. The views expressed are the writer’s own.
Both China and the US still have resources to sustain a
trade war, but further consumption of those resources is unnecessary
since their goals have proved naive and absurd.
The situation is still highly uncertain, but the historical indicators
will gradually be corrected. China and the US will not get lost and the
world will benefit from the implementation of the consensus reached by
the two heads of state, assuming the responsibility to both countries
and the world and moving steadily towards the final end of the trade war
in stages.
AS talk of a recession picks up, a veteran fund manager, Ang Kok Heng of Phillip Capital Management Sdn Bhd, correctly points out that the Malaysian stock market has been in “recession” in five of the six years since 2014.
Hence, he does not envisage how it can get worse for the Malaysian stock market if the global economy does go into a recession next year. Fears of a global recession have picked up pace based on the behaviour of the US yield curve.
The yield curve, which charts the spreads of US debt papers of various tenures, has inverted several times in the past few weeks. Most people would not understand what an inverted yield curve means.
Simply put, it means long-dated debt papers of 10 years giving lower returns compared to shorter-term debt papers such as two-year US Treasuries. It causes what is called an inverted yield curve.
It goes against the normal behaviour of US Treasury yields because long-term debt papers should give a higher return than short-term papers.
The consequence of an inverted yield curve is that it will lead to banks reducing their lending activities because their margins are narrow. Eventually, it results in companies reducing their activities and the country going into a slowdown or recession.
An inverted yield curve has been the precursor to all past recessions (see diagram).
However, there are some who are disputing the fears of an impending global recession based on the behaviour of the bond yield curve. Their reason is that the bond yields are not behaving as what they should due to the governments all around the world printing money to keep interest rates artificially low since 2009.
Interest rates have become so low to the extent that European banks are offering no returns on deposits. This means depositors do not get any money for keeping their money in the banks. Borrowers instead get discounts on their installments.
It’s happening in Europe because government bond yields there have turned negative.
For instance, the yield on 10-year Switzerland bonds is negative 0.74%, while German bonds of a similar tenure yield negative 0.52%. From France to Denmark, government debt papers have negative yields.
Only some countries such as Portugal and Spain still have positive yields on their debt papers.
Analysts believe that this has resulted in investors resorting to buying US debt papers that still offer positive yields. Hence, the price of bonds across all tenures in the US has gone up, causing their yields to come down.
The search for yields has also resulted in the narrowing of the difference between what the two-year and 10-year debt papers offer. And there have been several occasions in the last one month when the yield on the 10-year paper was lower than the two-year debt papers.
Apart from the behaviour of the yield curve, the other indicator that is seen as a precursor to a recession is the declining manufacturing sector all around the world caused by the trade war between the US and China. The Purchasing Managers’ Index (PMI), which is a leading indicator to assess the state of the economy, has been declining for all major economies.
For Malaysia, the PMI has been less than the 50-point benchmark for almost a year now. The same trend is seen in China, while the indicator has started to decline in the US in the last few months, which some see as a result of the trade war.
The trade war has caused supply disruptions, impacting the manufacturing sector.
However, there are other indicators that do not indicate a recession is imminent.
Banks are fairly well-capitalised and have pulled the brakes on lending. We do not hear of banks being impacted by major corporate defaults except for some financial institutions in China. Malaysian banks, for instance, have weathered the storm quite well so far, thanks to Bank Negara keeping a tight rein on their lending activities.
There has not been any run-up in asset prices. Property prices in countries such as Malaysia have remained subdued since 2015 after Bank Negara pulled the brakes on lending. Since 2014, Bursa Malaysia has closed lower every year, except for 2017.
The only exception of rising asset prices is Wall Street that has soared to record highs. Stock prices are hitting all-time highs due to improved earnings growth.
Technology companies such as Apple and Amazon are US$1 trillion companies. The other technology companies such as Facebook and Alphabet are enjoying growing valuations because of earnings growth.
No other stock exchange in the world has such a large concentration of technology companies than the exchanges on Wall Street. All technology companies, even from China, want to list on Wall Street.
Even Alibaba is listed on the New York Stock Exchange and not in Hong Kong.
It has been 11 years since the last recession, but the world’s central banks have resumed their printing of cheap money to keep interest rates low. The European Central Bank has resumed quantitative easing, while the US Federal Reserve is reducing interest rates. In essence, central banks are taking these measures to prevent a slowing economy going into recession.
In the meantime, it has caused fear among people and companies. Companies are holding back on spending, and in fact, cutting down on their debt.
A clear indicator is in the US where companies raised the most amount of corporate debt. Apple and Disney raised US$7bil worth of debt papers to reduce their borrowings.
In Malaysia, corporations have been deleveraging for the past few years in anticipation of a slowdown. Companies are not expanding, as indicated by the declining private-sector gross capital formation.
It is only reasonable for companies and people to save for the upcoming rainy days. Even governments are cautious in spending. For instance, in the upcoming Budget 2020, many are expecting the government to start spending. But there is also a view that the government will adopt a cautious stance as it continues to strengthen its balance sheet and reduce debts.
If nobody spends for fear of a recession, it would be a self-fulfilling prophecy.
Most people are expecting a recession, meaning negative growth. Fear of a recession has translated into a slowdown that the world and Malaysia are experiencing. If this fear continues to perpetuate, a recession would be a self-fulling prophecy.
It is good to be fearful, but being too fearful and conservative will also result in lost opportunity.
As Ang of Phillip Capital puts it, in times when fears of a recession seap in, cash must be held to seize opportunities. Holding cash as an investment is not a wise option.
Malaysia may, to a certain extent, be less
vulnerable with the revival of major construction projects which in view
of the country’s strained finances, have been shrunk to cut costs. The
Singapore economy may undergo a “shallow, technical recession” in the
third quarter.
Unknown future: As Singapore further cut its
growth forecast, New Zealand, India and Thailand also cut their interest
rates signalling concerns on growth outlook. — AFP
Centre of attraction: China’s President Xi
Jinping greeting Dr Mahathir as he leaves with Russian President
Vladimir Putin after the opening ceremony of the Second Belt and Road
Forum in Beijing, China.
Dr M endorses the BRI - ‘Many countries are going to benefit from initiative’
With help from Chinese firms, Malaysia will have an AI park soon. That’s not all the good news that came from the Prime Minister’s trip to China. Businessmen are pleased that Tun Dr Mahathir Mohamad has given the thumbs up to the Belt and Road Initiative. He says countries in its route will be the beneficiaries. And that means Malaysia too. WITH all of China as his stage, Tun Dr Mahathir Mohamad gave a massive endorsement to the country’s Belt and Road Initiative (BRI), saying all will benefit from the ease of travel and communication the development strategy will bring.
The Prime Minister said that with trade driving the world, it was only natural that land and sea passages be better developed.
“The Silk Road, the land passage between East and West, has not received much attention. Yet it must be obvious that with modern technologies the passage can be improved.
“Without a doubt, the utilisation of these passages will enrich all the littoral states along the way, as much as the great nations of the East and West. I am fully in support of the Belt and Road Initiative. I am sure my country, Malaysia, will benefit from the project,” he said in his speech at the High-Level Meeting of the Second Belt and Road Forum for International Cooperation held at the China National Convention Centre here yesterday.
The forum attracted over 5,000 participants from 150 countries including leaders from around the world, such as Russian President Vladimir Putin, President Rodrigo Duterte (Philippine), President Abdel-Fattah al-Sisi (Egypt) and Prime Minister Nguyen Xuan Phuc.
The BRI, also known as the One Belt One Road (OBOR) or the Silk Road Economic Belt and the 21st-century Maritime Silk Road, is a strategy adopted by the Chinese government involving infrastructure development and investments in 152 countries and international organisations in Europe, Asia, Middle East, Latin America and Africa.
Dr Mahathir said just as massive trade by ships helped spawn the development of huge bulk carriers, the land passage should also “respond” to the increased trade between East and West. He also suggested that bigger trains be built for the purpose.
“If ships can be built bigger, why can’t trains be equally big to carry more goods and raw material and people? Have we reached the limit in terms of the size and length of trains? I think not,” he pointed out.
Dr Mahathir, who is on his second visit to China since becoming the 7th Prime Minister last May, said the world has the technology and funds to bring about such improvements.
He said freedom of passage along these routes was important and warned against bureaucratic hassles slowing down the speed of travel.
“It is essential therefore for these passages to be free and open to all,” he said, adding that the passages must be made safe as terrorism and wars would render the modern marvels and also delivering the benefits promised.
“Yes, the Belt and Road idea is a great. It can bring the landlocked countries of Central Asia closer to the sea. They can grow in wealth and their poverty reduced.
“As the sea routes and land routes improve, trade and travel will grow, and with this, the wealth of the world will increase for the betterment of everyone.
Dr M in Beijing: Everyone will benefit from Belt and Road initiative
PETALING JAYA: Prime Minister Tun Dr Mahathir Mohamad has endorsed the Belt and Road initiative by China, saying everyone would benefit from the ease of travel and communication that it would bring about.
He said this in his speech at the Belt and Road Forum for International Cooperation in Beijing on Friday (April 26).
"Today, trade drives the world. It is only natural that the land and sea passages have to be better developed.
"The Silk Road, the land passage between East and West, has not received much attention. Yet it must be obvious that with modern technologies, the passage can be improved.
"Without doubt, the utilisation of these passages will enrich all the littoral states along the way, as much as the great nations of the East and West," said Dr Mahathir..
According to the Prime Minister, just as the massive trade by ships helped spawn the development of huge bulk carriers, the land passage should also respond to the need from the increased trade between East and West.
He suggested that bigger trains be built towards this end.
"Although trains can now connect China with Eastern Europe, current trains are not designed for the increases in goods and people needing to travel along this passageway.
If ships can be built bigger, why can't trains be equally big to carry more goods and raw materials and people?
"Have we reached the limit in terms of the size and length of trains? I think not," he added.
The Prime Minister said the world had the technology and money to bring about such improvements.
He said freedom of passage along these routes, which pass through many countries via both sea and land, was important and warned against bureaucratic hassles slowing down the speed of travel.
"It is essential therefore for these passages to be free and open to all," said Dr Mahathir.
He added that the passages must be made safe as terrorism and wars would render the modern marvels that enabled the Belt and Road incapable of delivering the benefits they promised.
"Yes, the Belt and Road idea is great.
"It can bring the landlocked countries of Central Asia closer to the sea. They can grow in wealth and their poverty reduced.
"As the sea routes and land routes improve, trade and travel will grow, and with this, the wealth of the world will increase for the betterment of everyone.
"Everyone will benefit from the ease of travel and communication that the development of the Belt and Road project will bring.
"I am fully in support of the Belt and Road initiative. I am sure my country, Malaysia, will benefit from the project," said Dr Mahathir.
PM’s BRI backing allays fears over KL-Beijing ties
KUALA LUMPUR: Tun Dr Mahathir Mohamad’s full endorsement of China’s Belt and Road Initiative (BRI) will allay concerns over Malaysia-China relations and lead to greater cooperation between both countries, according to China watchers here.
RHB Research Institute Sdn Bhd vice-president and head of Economic Research Peck Boon Soon said Malaysia was trying to mend its relations with China.
“It is safe to conclude that relations between our two countries are back to normal,” he said, referring to the suspension and cancellation of several China-linked projects last year.
Peck said the revival of East Coast Rail Link (ECRL) and Bandar Malaysia projects and the Prime Minister’s presence at the Second Belt and Road Forum for International Cooperation in Beijing yesterday would help restore confidence among businessmen from China.
He said it made perfect sense to have warm ties with China as the country was the largest export market for Malaysia.
ACCIM SERC Sdn Bhd executive director Lee Heng Guie said Malaysia’s expressed support of the BRI opened up mutual consultation, increased cooperation and connectivity benefits between both sides.
“With this strong endorsement, we expect the relationship to further deepen bilateral ties and enhanced economic relations based on the principles of mutual benefit,” he said.
Lee said Malaysia and its private sector could gain from the enlarged trade and investment opportunities along the passage and gateway of BRI, if the countries could adopt the freedom of passage along these routes through the easing of bureaucratic hassles.
National Chamber of Commerce and Industry of Malaysia president Tan Sri Ter Leong Yap, who attended the Belt and Road CEO conference which was the first such conference at the forum, said the conference provided huge business opportunities for many companies in the region.
“This is a timely boost for the global economy,” he said, adding that there were nearly 1,000 participants from 90 of the world’s Top 500 companies, 78 of China’s Top 500 companies, more than 100 state-owned enterprises and 200 private companies at the conference.
Businessman Datuk Liu Thim Soon, who is vice-chairman to the United Nations Maritime-Continental Silk Road Cities Alliance, said the BRI was a visionary, long range direction by Chinese President Xi Jinping. “It is an enabler and platform for many developing smaller countries to be linked to investments, trade and tourism.
“With about 140 million China tourists travelling yearly, smaller developing countries can benefit and derive great economic potential if they can tap into this market,” he said. - By Yimie Yong
Who should you believe about BRI?
https://youtu.be/uK3-dhLp2yU
Deal inked to develop M’sia’s first AI park
MALAYSIA is to develop its first artificial intelligence (AI) park.
The park will serve as a platform for the development of AI solutions such as speech recognition, robotics and smart city technology.
It is also planned to be a regional epicentre for data management, research and development and commercial ecosystem.
An agreement was signed yesterday between Malaysian company G3 Global Bhd (G3) and its Chinese partners SenseTime Group Ltd and China Harbour Engineering Co Ltd (CHEC) on the setting up of the AI park, with the total investment at US$500mil (RM2.07bil).
The location of the park has yet to be identified.
The agreement was signed between G3 executive chairman Wan Khalik Wan Muhammad, SenseTime president for Asia-Pacific Business Group Jeff Shi, and CHEC chairman Lin Yi Chong.
The ceremony was held after Tun Dr Mahathir Mohamad’s visit to SenseTime’s office here.
The Prime Minister also tried his hands on the self-driving car system at the company, which specialises in AI technology. G3 Global banks on AI
Driven by technology: SenseTime Group Ltd
founder Prof Tang Xiaoou with Dr Mahathir during the premier’s visit to
SenseTime’s Beijing office.
From jeanswear maker to one of Malaysia’s rising artificial intelligence (AI) companies. That is the interesting story ofG3 Global Bhd
that is unravelling today.
While many companies can attempt to boast the AI buzzword as a business focus, it is not an easy area to venture into.
First you need super computers. Then you need the AI software or algorithms.
And then you need to use that software on vast amounts of data in order to build the AI applications for real use.
While G3 Global may have made some inroads into building its own Internet of Things (IoT) platform, it has yet to achieve anything big by itself in the AI space. That was until it signed a deal with China-based SenseTime Group Ltd, touted as the world’s most valuable AI startup.
On April 11, G3 Global told Bursa Malaysia that it will partner with SenseTime to set up Malaysia’s first AI park, in collaboration with China Harbour Engineering Company Ltd (CHEC).
The AI park is expected to see more than US$1bil (RM4.13bil) in investments over the next five years.
According to G3 Global executive chairman Wan Khalik Wan Muhammad, the AI park is vital in order to build AI research-related public service infrastructure as the base to promote AI technology in Malaysia.
“In addition, this becomes a place for talent to be trained on AI and machine learning,” he said.
On Friday, the culmination of the relationship between G3 Global and SenseTime took place, following Prime Minister Tun Dr Mahathir Mohamad’s ongoing official visit to China.
Dr Mahathir, accompanied by several Malaysian ministers, visited SenseTime’s Beijing office where they got a first-hand experience of the latest AI technologies and its application in smart city solutions, autonomous driving technology and remote sensing, among others.
During this visit, G3 Global had inked memorandums of understanding (MoU) with SenseTime and CHEC in relation to the AI park project.
G3 Global said in a statement that as the local partner, it will coordinate efforts with the Malaysian authorities and regulators, form local partnerships as well as promote and develop the AI park project.
Meanwhile, SenseTime will serve as the AI technology provider for the partnership while CHEC will provide infrastructure engineering and construction services as well as management and maintenance of the park.
Valued at over US$4.5bil (RM18.67bil), SenseTime is the fifth national AI platform in China and is also the country’s largest AI algorithm provider.
Although it is only less than five years old, the company now serves over 700 customers and partners globally, including the Massachusetts Institute of Technology, Qualcomm, NVIDIA, Honda, Alibaba, vivo and Xiaomi, among others.
Based on SenseTime’s website, the startup leads the AI market in “almost all vertical industries” such as smart city, smartphone, mobile Internet, online entertainment, automobile, finance and retail.
“SenseTime has independently developed a deep learning platform, supercomputing centers, and a range of AI technologies such as face recognition, image recognition, object recognition, text recognition, medical image analysis, video analysis, autonomous driving and remote sensing,” it says.
According to a recent Bloomberg report, SenseTime has been profitable for two years and the company has recorded triple digit revenue growth for the past four years.
The collaboration between G3 Global and SenseTime aptly serves what both companies need. By setting up an AI park in Malaysia, SenseTime will be able to expand its global presence further while G3 Global gets to go big into the booming AI scene.
Overall, the AI hub in Malaysia is a nice sounding plan. But how real will it be and how extensive will it be?
Speaking with StarBizWeek over the telephone, Wan Khalik says that the move into AI has been a natural progression of the company.
“With IoT as our core business, the only logical next move was to get into the field of AI. We had been in search for a good partner to fast-track out entry into AI, which has a high entry barrier.
“That’s how we got to do a deal with Sensetime, which took much effort on our part, considering how successful Sensetime already is,” he says.
Perfect partner
Wan Khalik: With IoT as our core business, the only logical next move was to get into the field of AI
Wan Khalik adds that SenseTime is the perfect partner, considering that they are one of the biggest AI companies in the world and have their own AI algorithm as well as products and services.
“Their products are already deployed in the commercial world,” he points out.
While acknowledging that AI is still nascent in its growth in Malaysia and still suffers from a lack of understanding and appreciation, Wan Khalik points out two important aspects that the deal with Sensetime will bring about.
“First is that the lab will become an education tool to showcase what AI is all about and the benefits it brings. Second is the fact that we intend to address the issue of developing talent in Malaysia in the AI space.”
In the press release announcing the strategic partnership between G3 and SenseTime, it was revealed that SenseTime will be assisting in the development and deployment of training syllabus for universities in Malaysia.
Wan Khalik says that SenseTime has designed and developed part of the AI syllabus that is currently being taught in schools across China.
“The good news is that the Malaysian government has expressed strong interest in AI and it wants industry to get involved in AI. But we need to invest in buidling up the talent in this field,” he adds.
The little-known G3 Global’s journey is an impressive one.
Its diversification into the information technology scene began less than four years ago after G3 Global (formerly known as Yen Global Bhd) acquired IoT solution provider Atilze Digital Sdn Bhd in December 2015.
Green Packet Bhd, image: https://cdn.thestar.com.my/Themes/img/chart.png
, a mobile broadband and networking solutions provider, emerged as a major shareholder in G3 Global after it acquired a 22% stake in August 2016.
A year later, Green Packet boosted its equity interest in G3 Global to 32%.
The G3 Global stock’s trend has been rather flattish since mid-2017. However, since the start of April this year, shares of G3 Global surged by 106% to its record-breaking high of RM1.62.
On April 25, the company hit limit-up and was issued with an unusual market activity query from Bursa Malaysia, in relation to the rapid advances in its share price.
While the reasons behind the sharp increase in G3 Global’s share price were unclear, it seems to have some correlation with G3 Global’s partnership with SenseTime.
G3 Global also saw the entry of Wan Khalik as shareholder, after he assumed control of private vehicle Global Man Capital Sdn Bhd, which currently has the largest stake in G3.
Global Man Capital increased its holdings of G3 Global to a 32.04% stake following an acquisition of 32.15 million shares in April, edging out Green Packet’s 32% stake.
On April 5, G3 Global appointed Wan Khalik as its new executive chairman.
Wan Khalik, who is also a substantial shareholder in DWL Resources Bhd, has some notable Sarawak connections, having been the principal private secretary to the Sarawak State government between 2013 until July 2018.
Wan Khalik’s background also includes experiences in corporate planning, public administration, IT strategic planning, and business development.
When asked on why did he pick DWL and G3 Global as companies to invest into, he says, “For DWL we see opportunities in project management of jobs of major infrastructure projects that the country is embarking on. That is why we have teamed up with the likes of Gadang to prepare to jointly bid for such jobs. As for G3 Global, it is even more interesting because of the future of AI. As you probably already know, AI is the world’s next great technological revolution. It is changing the way information is gathered, stored and used. We will not be able to do without it, whether as individuals, organisations, companies and governments. We believe our deal with Sensetime puts G3 Global on solid footing to bring AI to Malaysia and the Asian market.”
G3 Global recorded a net loss of RM17.15mil in the financial year of 2018 ended Dec 31, against a turnover of RM29.4mil. Both of its apparel and ICT business segments were in the red for the 12-month period.
“The ICT business continues to show growth potential despite incurring losses due to business development costs and we hope to see better contribution to sales from this division in the new financial year.
“The setting up of various new subsidiaries will drive the growth in the ICT business including the provision of IoT solutions and services like connected commercial vehicles and sensor hubs, and AI smart cameras. The group will be well positioned to take advantage of improving prospects of the ICT industry for the current financial year,” G3 Global said in a filing.
Moving forward, with the AI venture with SenseTime, the company is clearly on a new trajectory, especially considering the way AI is going to flood all our lives.
According to a recent study by Microsoft and IDC Asia Pacific, only 26% of organisations in Malaysia have embarked on their AI journeys, although about 70% of the business leaders polled agreed that AI is instrumental for their organisations’ competitiveness.
The immense untapped potential in the domestic AI market offers promising opportunities for local AI companies, including G3 Global.
With a strong backing from SenseTime, G3 Global could rise to become a leading AI solutions provider in the region.
