Reponsible housing developers' traits and qualiies expected

Traits of a responsible housing developer

KNOCK, knock! Any “good” housing developers out there?

I am reluctant to use the words “good developers” as the words are not in my vocabulary. However, there are responsible ones and more are joining this category.

The qualities of a responsible developer are to be emulated, if you can find them.

The housing industry has come a long way since the advent of large-scale housing development in the late 50s and early 60s. The players in those times were bona fide entrepreneurs. Most probably, conscience ruled and pride in workmanship, timely delivery of quality and affordable houses were their hallmarks.

The present delivery system of “sell-then-build” through progressive payments is fraught with risks for the unsuspecting house buyers. These second generation housing developers, “good” or bad, are used to the lucrative profits from the housing industry. This is so because the post-independence period has been a period of high population and economic growth. Hence, the demand for housing is ever increasing. In a sellers’ market, the buyers are always at a disadvantage. When greed is inversely proportionate to conscience among industry players, the situation can get very bad indeed.

We often hear of developers lamenting about the shortage of workers (legal or illegal, skill or inexperienced), shortage of building materials, complying with new laws or regulations that made it hard for them to complete their projects on time. At the same time, we also hear of projects making multi-million ringgit in profits for the developers and we do not see or hear news of housing developers retiring or quitting the business entirely.

This would mean that the housing development is still a lucrative business. In fact, more rookie developers are joining the arena because the sell-then-build system allows them to make money from people’s money.

It has become a ‘riskless venture’ where profits are guaranteed, and in the worst scenario, the government will mop up the abandoned housing project, befitting the adage: Profit Privatised, Losses Nationalised’

Enough of the bad ones, we at HBA do keep our ears opened for the qualities of responsible developers to be emulated. In the first place, how do buyers judge if their developers have been responsible? The construction industry is a unique field. It is one of a few professions where no formal education is required.

There is no formal award giving ceremony by buyers to tell the world their developers have been ‘good’ and responsible.

There are also some other things the responsible developers do that prove they have a passion for their profession. Here are some of the traits practised by responsible developers.

Attention to environment and existing neighbourhood

Responsible developers do not just depend on their buyers to pass the word around about their reputation. No new project is an island. There are existing neighbouring projects, trees etc. A responsible developer ensures the existing neighbourhood is not disturbed by their new development.

If there are complaints, such as cracks, a landslide and floods that the new construction is causing to the existing neighbours, they are quickly attended to. They also ensure that the existing roads are kept clean regularly from construction activities.

Amenities, facilitiesand infrastructure

Developers who provide adequate amenities and facilities like playgrounds, schools, markets, community halls and even police booths are not only fulfilling the obligations imposed by the local council but also their social responsibilities to society. These developers are commendable as good corporate citizens. It enhances their image too. There are also developers who invest and build infrastructure first prior to selling their houses.

Takes pride in quality and timely rectification

Whether low-cost or high-cost houses, chasing the developer to rectify shocking defects, bad workmanship is a nightmare to buyers who lose out while waiting for repair works.

Responsible developers do their own quality checks before handing over their products. Caring developers do practise the following before handing over their products:

• Adopt quality checks at all stages of construction, test and commissioned utility supplies;
• Clear and clean individual units and construction site of debris;
• Ensuring the Certificate of Compliance and Completion (CCC) is obtained with the handover of units;
• Retain a team of competent workers to do rectification promptly if there are complaints on defects.
• Keeping sufficient stock of products like floor tiles of the same quality and make.
Some developers even extend the mandatory defects liability period of 24 months. We have also heard of developers providing alternative lodgings for their buyers while waiting for defects to be corrected.

Timely delivery

Time is the essence of the contract of sale and purchase. Houses should be delivered within the time stipulated in the sale and purchase agreement ie within 24 months for ‘land and building’ and 36 months for ‘building intended for subdivision’. If, for whatever reason, there are delays, compensation should be paid immediately to buyers without second thoughts or finding devious ways to ‘short-change’ the buyers.

Responsible developers keep their buyers informed of delays and tell them of the next expected delivery date. Some buyers even told us of the extras they have received at delivery time, which surely endear them to the developers. These are some of the ‘welcome packs’ that they have received: useful gifts like a key box; warranties from paint companies, auto-gates, pest control, electrical appliances; certificates of treatment for termites / pest control; a certified copy of the CCC issued by the architect and certified copy of the building plans and plans that relate to electrical wiring and water piping so as to facilitate future renovation.

Interest charged

One clause in the sales contract states that the buyer is responsible for late payment interest. It is a common complaint by buyers that their developers would charge interest for late payment even though it is the fault of the end-financier or their lawyers doing the legal documentation. Responsible developers assist in ensuring that the documentations are in order and the buyer is not burdened with any late payment interest.

Joint Management Body (in stratified projects)

Responsible developers assist their buyers to form committees and be prepared for the formation of the management corporation. These developers realise that the projects they have developed will eventually pass to the owners to maintain and manage.

Encouraging community living

Developers who encourage forming of resident/ owners association are a welcome lot. Some even go to the extent of contributing monies for the formulation of buyers representative group for a meaningful channel to voice grievances. Some even provide meeting facilities and allocate a multipurpose room for the elected representative group.

Good communication

The line of communication should always be open between buyers and their developers:
• Keeping buyers informed of the ongoing projects and their products;
• Developers not to appear having shun away from their responsibility;
• Treating the buyers with respect as buyers can serve as their marketing tool. Show respect and you will gain respect;
• Transparency and accountability on monies collected;
• Providing regular accounting reports and budgets;
• Voicing of any grievances rather than through the media, which will bring adverse effect to the detriment of both parties.

Build first then sell

There is no step that can be more pronounced than for housing developers to adopt the absolute ‘built first then sell’ so that potential buyers can see for themselves the finished product before buying. We believe that in this way, most of the present day ailments afflicting the housing industry can be avoided and the housing industry will be a lot more orderly.

In the interim period, responsible developers have embarked on the Built then Sell (BTS) 10:90 concept where the buyers pays 10% and the balance of 90% to be paid upon completion of the house. They are already big names among developers that find the BTS 10:90 concept workable and feasible and are targeting to achieve the Government aspiration of making BTS 10:90

There are responsible developers whose names are synonymous with quality and trust. They are able to win over buyer’s confidence. Today, they have created their own brand names. No wonder some developers do not advertise, yet all their units are sold out even before the official launch.

By Chang Kim Loong AMN who is the secretary-general of the National House Buyers Association.


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Global currencies weaken in currency war against super US dollar; exporters gain

Central banks making moves to check appreciating currencies against US dollar

A number of central banks have been making moves to shake up their currencies over the past few months.

Faced with slowing global growth and lower inflation – disinflation or deflation in a number of countries – central banks started taking action primarily by cutting interest rates or injecting liquidity into the system.

From Japan increasing its monetary stimulus to Singapore putting the brakes on its currency’s appreciation against a trade-weighted basket of currencies, stemming currency appreciation has led to talk that a currency war could be brewing.

Using the value of currencies to boost trade-heavy economies has been the flavour, as global economic growth slows.

The International Monetary Fund cut its global growth outlook from 3.8% to 3.5% this year and with growth easing in China, Europe and a number of emerging economies, giving support to such economies has been the focus of governments.

The European Central Bank instituted its own quantitative easing (QE) policy on Jan 22 to get growth going in the European Union.

The effectiveness of that policy has been questioned, but the immediate result was that the euro, which has been weakening against the US dollar, continued to fall against the greenback.

With Japan flooding the market with liquidity to get growth and inflation going with its own QE, the result has been a marked weakness in the currency.

The yen’s steep depreciation against the dollar, according to reports, is causing uneasiness in South Korea, which competes almost head-to-head with Japan in the export markets.

What is allowing countries that have taken action to cut their interest rates has been the slowing inflation.

The steep fall in crude oil prices since June last year to below US$50 a barrel has eased inflationary pressure worldwide, as energy is usually the biggest component of inflation. It’s been reported that over the past six months, 18 out of 50 MSCI countries have cut rates.

The Reserve Bank of India, which has an inflation targeting policy, cut interest rates this month. India, along with Denmark, Switzerland, Canada, Egypt and Turkey, has cut interest rates this month itself.

That was followed by Singapore’s move to slow its rise against a basket of currencies, which saw the Singapore dollar continue its recent drop against the US dollar.

Falling inflation was the primary reason for the Monetary Authority of Singapore (MAS) to make its pre-emptive move to slow down the appreciation of its currency by reducing the pace of increase. But quite a number do not pin that move as a significant competitiveness boost.

“The adjustment does not translate into a massive competitiveness impact,” says Saktiandi Supaat, Malayan Banking Bhd’s head of foreign exchange (forex) research based in Singapore.

MAS’ next policy statement will be due in April where it could give some clarity on the competitiveness angle, but the drop in the Singapore dollar against the greenback does help to boost inflation, which is expected to be lower than had been earlier estimated. The previous outlook was for a -0.5% to 0.5% rise in inflation.

A slower rate of appreciation would also help Singapore’s economy, which is already dealing with cost pressures from a tight labour market where the unemployment rate was a meagre 1.6%.

Furthermore, with non-oil domestic exports reportedly dropping for the past two years, a weaker Singapore dollar will help, especially when exports to China and the United States have fallen on a year-on-year basis.

Pressure is also emerging in Thailand, where the stronger baht is also not helping with exports, which dropped 0.4% last year.

Finance Minister Sommai Phasee was recently reported to have said that the Thai central bank should “in theory” lower borrowing costs, and that exports are under pressure from a stronger baht.

Fundamentals back appreciation

The Philippine peso and the baht are two currencies in this region that have in recent months seen an appreciation against the dollar. The reason for this is that the fundamentals of these economies have improved.

“The Philippines is not reliant on commodities as much as Malaysia, Indonesia and Thailand and that is the biggest driver of its currency,” says a currency strategist in Singapore.

“It just registered its strongest gross domestic product (GDP) growth over three years since the 1950s.”

The Philippine economy grew by 6.1% last year after expanding by 7.2% in 2013.

Thailand, recovering from floods and political unrest, has also been a flavour for foreign investors since stability returned.

Its stock market in US dollar terms is now bigger than Bursa Malaysia and one of the reasons for the currency’s rise is the drop in oil prices.

The fall in crude oil prices is expected to have the biggest economic benefit to Thailand and the Philippines among countries in this region, according to Bank of America Merrill Lynch.

“Lower oil prices have not resulted in any sizeable GDP growth upgrade as yet for emerging Asia, in part because of slowing global growth outside the United States.

“Lower oil prices have, however, improved the trade surplus significantly, supporting the current account balance and FX reserves positions.

“Lower oil prices have also resulted in a sharp drop in inflation, particularly in Thailand, the Philippines and India, which has allowed central banks to stay accommodative. Emerging Asian countries will likely see a boost to GDP growth in the range of +10bp to +45bp with every 10% fall in oil prices, if the oil price drop was purely a supply shock,” it says in a note.

The low-inflation environment will also allow central banks in this region to become more accommodative.

“Lower crude oil prices and loose global monetary policy will likely keep inflation lower in 2015 with rising probability of rate cuts in Asean,” says Morgan Stanley in a note.

How low will the ringgit go?

The past three months have been a volatile period for global currencies and no more so when it comes to the ringgit, which is the second-worst performing currency in Asia against the US dollar over the past 12 months after the yen.

Directly, the drop in crude oil prices has affected the fundamentals of Malaysia and carved a chunk out of government revenue, as receipts from crude oil production account for slightly less than 30% of income.

With revenues depleted, the Government has revised its budget for this year to take into account crude oil averaging US$55 a barrel in 2015 from an earlier projection that it would average US$105 a barrel when the budget was announced last October.

The revised budget also led to a slight increase in the fiscal deficit to 3.2% of GDP from an earlier projection of 3%.

That percentage is lower than the 3.5% target for 2014.

Apart from fiscal discipline, the ringgit’s fortunes have been loosely linked to the price of crude oil.

With this July marking the 10th year when the ringgit peg to the US dollar was lifted, the decision to remove the RM3.80 to the US dollar peg was to ensure that the ringgit reflected the fundamentals of the economy.

Prior to that decision, the price of crude oil had started to rise, delivering valuable additional revenue to the Government.

When the peg was lifted, brent crude oil was trading at US$55.72 a barrel, and over the years, the ringgit loosely tracked the value of crude oil, often appreciating against the dollar when crude oil prices were high and weakening when crude oil prices dropped.

Anecdotally, the ringgit gained strength against the dollar when oil prices soared and approached the RM3 to the dollar mark when crude oil hit more than US$140 in 2008.

It dropped in value as crude oil prices retreated from there, and as crude oil prices went up again and stayed at elevated levels for a prolonged period, the ringgit then crossed the RM3 level into the RM2.90 range.

Forex strategists say sentiment does affect the movement of a currency, but it moves in parallel with the fundamentals of an economy. With Malaysia’s fortunes closely linked to the price of crude oil, it is inevitable that the thinking of the country’s fundamentals will also change.

“If energy prices continue to drop, then it will hurt the ringgit,” says a forex strategist based in Singapore.

Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz recently said the ringgit, which is currently trading at multi-year lows against the US dollar, did not reflect Malaysia’s strong underlying fundamentals.

“Once the global events settle down and stabilise, the ringgit will trend towards our underlying fundamentals,” Zeti told reporters at an event.

Apart from lower crude oil prices, the ringgit has also been hurt by capital outflows.

Malaysia’s forex reserves in the first two weeks of January were at its lowest level since March 2011 and foreign investors held 44% of Malaysian Government Securities (MGS) as of the end of last year.

Analysts say while foreigners have sold off a chunk of government debt, the remaining are not expected to do so as long as they are making a decent return on their holdings. The rise in the value of the 10-year MGS will give support to their holdings.

A number of forex analysts think the ringgit will not slip below RM3.70 to the US dollar, but some do admit they did not think it would be trading at the current level of around RM3.63 a few months ago.

“If it does go to RM3.80, then people will get panicky,” says one forex analyst.

By Jagdev. Singh Sidhu The Star/ANN

Semiconductor and rubber glove makers to gain from weak ringgit

Kenanga Research believes that the semiconductor industry will stay resilient with the global sales continuing to show healthy momentum.

THE decline of the ringgit is generally viewed as a problem for the economy but there are always two sides to the story.

Exporters with high local ringgit-denominated content and strong external demand are the obvious winners as they are expected to benefit from the weakening ringgit.

The winners are said to be the semiconductor and technology, rubber gloves and timber-based sectors. The share prices of a number of those companies have already factored in the benefits to their business from the weaker ringgit after the currency started its decline,which was more pronounced since the beginning of the fourth quarter of last year.

On the semiconductor front, Kenanga Research says believes that industry will stay resilient with the global sales continuing to show healthy momentum. Bottom-fishing is recommended as a strategy especially with the current risk-reward ratio less favourable following rich valuations in some counters.

“Typically, first and last quarters of a calender year, the earnings for the semiconductor players are seasonally weaker.

“That said we see any price weakness in these stocks as opportunities to accumulate as the earnings shortfall could be made up by the seasonally stronger second and third quarters on the back of the resilient industry prospects,” it says in a recent report.

Screening through the semiconductor value chain, Kenanga Research sees Vitrox Corp Bhd, being the leading solution providers of automated vision inspection systems to continue benefiting from the increasing complexity of semiconductor packages, which requires enormous inspection.

The research house is sanguine over OSAT (outsourced chips assembly and testing) players such as Unisem (M) Bhd. Inari Amertron Bhd is among the research house’s top pick.

PIE industrial Bhd managing director Alvin Mui says the group would see its sales rising this first quarter.

“But this is due to the new box built products we are doing for the medical equipment segment.

“The weakened ringgit will of course boost our revenue and bottom line,” Mui says.

Meanwhile, Elsoft Research Bhd chief executive officer CE Tan says the weak ringgit has boosted orders for its LED test equipment for the first quarter of this year.

“We expect to perform by a strong double digit percentage growth over the same period last year,” he says.

Tan says the LED testers the group produces are niche products with competitive pricing.

Rubber gloves players have seen strong price appreciation since late last year. Maybank IB Research likes Kossan Rubber Industries Bhd due to its stronger earnings growth in financial years 2015 and 2016, underpinned by the full contributios of its latest three plants.

Meanhile, JF Apex Securities mentions Latitude Tree, Poh Huat and Heveaboard among the timber-based industry stocks that can benefit from strengthening US dollar against ringgit.

The US market is the biggest for the industry which will gain from cheaper ringgit-denominated local content and stronger US economic growth.

The losers from a weaker ringgit, JF Apex Securities Bhd senior analyst Lee Cherng Wee mentions, are automotive players which import a lot of parts especially for completely-knocked down vehicles.

Lee says counters such as Tan Chong Motors and UMW Holdings are likely to be affected.

RHB Research in a recent report says about 60% of Tan Chong’s manufacturing cost of sales is transacted in foreign currency (80% in US dollars) which RHB sees as a risk.

“Continued US dollar strength will crimp margins that will not be offset by a weaker Japanese yen,” it says.

Lee also predicts the consumer sector players with high imported content in dollar terms could risk slimmer margins coupled with sluggish consumer sentiment due to goods and services tax.

MIDF Investment Research analyst Kelvin Ong said he foresees banking groups with higher foreign shareholdings like CIMB Group Holdings Bhd, Alliance Financial Group Bhd, AMMB Holdings Bhd and Public Bank Bhd as banks that can be impacted by the weaker ringgit.

“Foreign shareholding may slip if the domestic currency continues to weaken. The Fed’s tightening of the interest rate turns out to be more aggressive than expected, and crude oil prices continue to be on a downward trend. This will impact valuations of banks, but on the flip side, it will present buying opportunities for investors on a more attractive valuation,’’ he says.

By Sharidan M. Ali and David Tan The Star/ANN

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Welcome Goat, may you goad us to greater heights 2015!

The sheep really gets my goat

The Horse is about to gallop off and in comes the Sheep ... or is it the Goat? Which is better?

THIS is the Year of the Yang. That’s the word in Mandarin for “a ruminant mammal, generally with horns on its head”. ( In Chinese, the goat is a homophone of yang and so represents the solar, masculine principle; it also signifies peace and the good)

To the Chinese, yang can refer to either sheep (mianyang) or goat (shanyang), so therein lies the confusion as to what animal is the eighth in the 12-year cycle of the Chinese zodiac. To the Japanese, it’s the Year of the Sheep, to the Vietnamese, it’s the Goat, for the Koreans, it’s the Ram. The Chinese don’t mind either one.

But after a tumultuous Year of a runaway wild Horse, which would be a better animal for the year ahead? Let’s take a look at the characteristics of both cud-chewing critters, starting with the sheep.

According to David Murray in his essay, 12 Characteristics of Sheep, this is one stupid animal.

“I don’t know what sheep would score in an animal IQ, but I think they would be close to the bottom of the scale. They seem to only know how to do one thing well – eat grass (and produce more grass-eating sheep).

“It’s possible to know little, yet not be foolish; but not if you are a sheep. They are so irrational. You watch them as they pause in front of a stream. They know they can’t jump it or swim it. So what do they do? They jump in any way!” writes Murray, a pastor who got to know the animal well after 12 years in the sheep-infested Scottish Highlands.

Another characteristic is being slow to learn. Murray cites the example of a sheep getting caught in barbed wire while trying to break through a fence. Instead of learning from that painful lesson, it will do it again and again. That’s why sheep are dependent creatures, requiring close supervision by their shepherd, he adds.

Granted, scientists say new research shows sheep to be as intelligent as monkeys. But it will take a great deal more to change the long-held perception of this creature as being not just woolly on the body but in the head, too.

After all, we think “sheep” when it comes to mindlessly following the crowd, or for imitating what others do without understanding why.

Murray describes their behaviour thus: “When one sheep decides to start running, they all decide to start running. If you were able to ask one, ‘Why did you start running?’ it would say, ‘Well, because he started running.’ The next would say the same. And the next one. And when you got to the last sheep he would just say, ‘I dunno’.”

Goats, on the other hand, are described by animals.pawnation.com as “independent, intelligent and tolerant of interaction in general”. In other words, they don’t spook easily and don’t bunch together to graze.

The goat is also seen as a nimble, agile animal who can take on hilly terrain with ease. It’s even associated with determination for its ability to climb mountains and trees.

Because they are curious creatures, goats will try out new things and explore the unfamiliar – usually with their hyper-sensitive lips and tongue – and often end up chewing and eating strange stuff.

While the male goat is a symbol of virility and stamina, the female goat is a symbol for nurturing and nourishment. Which is why someone entrusted with looking after young children is called a nanny, which is a female goat.

After all that, which animal would you prefer for the Year of the Yang? My pick is the goat, for all the reasons I have listed.

We have enough of sheep-like behaviour from people who are spooked easily by certain groups and individuals using loud and intimidating tactics. What’s more, after being spooked, these people blindly and unquestioningly accept those noisy pronouncements and exhortations.

We also don’t need people who, like sheep, stick to their own kind, or harbour irrational fears and suspicions against their fellow citizens. Being more goat-like by mixing around and interacting with others is what we need more of in our society.

Neither can we afford any sheep-like slowness to learn and respond to the ever-changing socio-economic environment within and without the nation.

We can’t forever depend on a super shepherd (aka the Government) to think for and look after us. That has led to what we know as the crutch or subsidy mentality.

Of course Billy Goat has his critics too. Among Christians, being a sheep is preferable to a goat as the latter is depicted as devious and insincere in the famous parable about separating sheep from goats in favour of the sheep. There is also the view that goats are too independent and unpredictable to be good followers, unlike the mild and meek sheep.

Indeed, a citizenry can happily be meek and mild if there is a good shepherd who takes care of all its needs.

But this is not the time for meekness and mildness, but rather for fearlessness and fortitude.

We need to have both qualities if we as a nation are to hold fast against forces bent on tearing apart our multiracial, multicultural and multi-religious fabric. And if we are to compete on the global economic front, we need the goat-like sense of inquisitiveness and boldness to be innovative and explore new possibilities and ventures.

Critically, in such challenging times, we need leaders who are like mountain goats who can nimbly guide us on the rocky path ahead, and not silly sheep that jump into water without knowing how to swim.

All this will require a lot of ram-like determination and stamina – if not virility – from leaders and citizens. So I say “Welcome, Goat”, and may you goad us to greater heights!

 So Aunty, So What? by June H.L. Wong

 Aunty discovered that a possible explanation for the idiom, “really gets my/your goat”, which means something that really infuriates you, involves the olden-day practice of using goats as companions to racing horses to keep the latter calm. Hence, taking away the goat could upset the horse and affect its performance in a race! Feedback to junewong@thestar.com.my

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Abe’s strategy clearer after Japanese ISIS hostage crisis

The release of a video on Saturday showing a message that Haruna Yukawa, one of the Japanese hostages captured by Islamic State (IS) militants, had been slaughtered, shocked both Japanese society and its Western allies. Official institutions in both Japan and the US consider the video is likely to be authentic.

The IS claimed last Tuesday it had abducted two Japanese and gave the Japanese government 72 hours to pay $200 million in ransom for the captives. The Abe administration was put in a conundrum. In front of requests from the victims' families to save the hostages, the Japanese government vowed it would never give in to terrorism on one hand, on the other, it displayed a high-profile stance of striving to free the hostages. But it's believed that the Abe administration would be unlikely to carry out a dramatic rescue, which has already decided the fate of the hostages.

The brutality of the IS has become well-known. They kill hostages in a cold-blooded manner. Now that Japan has become a victim of global terrorism, Tokyo may reassess the challenges it faces. In the past few years, Japanese rightists portrayed China as Japan's major threat, despite the fact that China has never infringed upon Japan over the past century. It's instead Japan that invaded China and persecuted Chinese people again and again.

The death of the hostage also offers a new excuse for Abe to lift the ban on collective self-defense. Abe will face fewer hurdles now if he decides to cooperate with the US strategic deployment and strengthen Japan's military activities in the Middle East and its security deployment in East Asia.

Some claimed that Abe is more concerned about promoting rightist policies than rescuing hostages. For the good of peace in East Asia and the Japanese public, we hope such analysis is just speculative. Japan is not capable of playing an active role in the Middle East. East Asian countries are not supposed to be key targets of the atrocious IS. The Japanese hostage case sends a warning signal.

In the aftermath of the 9/11 attacks, the US has spent great efforts in ensuring its domestic security. However, US allies such as European countries and Japan have been constantly targeted by terrorism. It's worthwhile studying the underlying reasons.

The attack on Charlie Hebdo seemingly unveiled the conflicts between the whole of European society and the Muslim community, but it was striking to see how the US tries to remain neutral over the issue.

Having a geopolitical advantage, Japan should be a country without enemies. However, the country is plagued with a terrible mess in its national strategy. It misperceives China as an imaginary enemy. Tokyo's ultimate goal is said to be getting rid of US control, however, it is forced to defer to the US due to its confrontation with China. The killing of the Japanese hostage is more or less the price that Japan has paid for its support to Washington.

We strongly condemn the brutal killing by the IS. In the meantime, we hope Japanese public opinion will take a clear-cut attitude against any terrorist attack launched on China. - Global Times

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We need local councillors who can do the job

I REFER to the article “Local govt polls may cause racial polarisation” ( Sunday Star, Jan 25) and would like to share my views on matters.

The core functions of local government is to look at matters that are closest to the people.

Both the state and federal governments are too far from the people for them to have good understanding of the needs of the people at the micro level. Today the local authority has become a government agency and the councillors have been a rubber stamp of the decisions made by the local authority. Many who were appointed to the post lacks quality and knowledge in functions and power of a councillor.

Appointed councillors are political party nominees. The council seats are shared according to an agreed ratio among the component parties. They are not independent. Appointments are given as part of political rewards to grassroot party leaders.

At times decisions made by the council are not in the best interest of the people as for the councillors, party interest comes first. There are clear professional conflicts of interest between political parties nominees and between those meeting the needs the people.

In my area, the appointed councillors do not understand their role as councillors. They have been turned into “complaint centre” for people to bring their issues to the local authority.

These councillors have been assigned certain zones and have been tasked to look after drainage, rubbish collection and grass cutting.

They have very poor knowledge of the local authority by-laws. They fail to function as a “Board of Directors” of the local authority and provide the much needed check and balance between addressing the needs of the people and the local authorities.

While we can accept the point of maintaining the current system but we cannot accept the fact that the powers-that-be failed to nominate “independent people with strong knowledge on the governance of local authority” as specified under Section 10(2) in Act 171.

The law says that the state authority must appoint councillors who have wide experience in local government affairs or have achieved distinction in any profession, commerce or industry, or are otherwise capable of representing the interests of their communities in the local authority area.

Unfortunately the state government appoints party members who are grassroot leaders who in most cases do not meet the requirement of the law.

In Petaling Jaya, the capable ones were removed as councillors and replaced with mediocre group of people. In Ampang, we have unemployed party members and people with poor education background serving as councillors. They do not meet the requirement of the Local Council Act.

The question remains which political parties in power will be the first to push forward the agenda that focuses on the people and not their respective parties.

By Dr Mohamed Fafick Khan Ampang The Star/Asia News Network

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