Share This

Sunday, 25 October 2015

China-Britain bilateral relations in Golden Era


Putting economics first

Despite Britain’s role as the closest US ally, its leaders have surprised the world by surging forward in relations with a rising China.

FOR centuries, relations between Britain and China have been undulating, rising rather more than declining.

In that time, Britain has been more ­anxious to penetrate Chinese markets and forage for what China has to offer than the other way round.

The Queen and Chinese president Xi Jinping are driven by carriage along The Mall to Buckingham Palace Photograph: POOL/Reuters

The super-gala treatment that President Xi Jinping and Mrs Xi received in London ­during the week was not necessary to prove the point, but it helps. There was Xi, royally seated next to the Queen, in the gold-trimmed horse-drawn royal carriage parading through London and shown on television screens around the world.

The visiting presidential couple also lodged at Buckingham Palace, the Queen’s official residence, during their trip. Clearly, this was no ordinary state visit.

The Queen called the visit “a defining moment”, Prime Minister David Cameron called it “a golden era”, and Chancellor of the Exchequer George Osborne called it “a golden decade” for their bilateral relations.

An array of gilded items were spread among the vast gilt-edged dining chairs for Xi and his host, the Lord Mayor of London, at the second banquet after the Queen’s.

Gold, the auspicious colour in Chinese culture, went well with the red of the carpet and the Chinese flag.

And Britain was only too happy to oblige.

This was Xi’s first state visit, coming a full decade after his predecessor’s, Hu Jintao’s. But British leaders had been somewhat more proactive.

Only a few years ago, hiccups in relations occurred after British officials stumbled over such sensitive issues for China as the Dalai Lama. After the ruffles were smoothed over came the slew of mega business deals.

Britain wanted to ensure those deals were on and Xi’s state visit would seal them, so Osborne was dispatched to Beijing last month. To make doubly sure he made a side trip to Xinjiang, the alleged epicentre of China’s human rights violations, to talk trade rather than human rights.

China critics condemned that move. But it paid off for Britain in Xi’s high-powered four-day visit and all that it represented and contained.

On Tuesday, China’s Central Bank issued its first offshore renminbi bond in London. On the same day, Cameron appointed Chinese tycoon Jack Ma to his business advisory group. The next day, deals were signed amounting to £40bil (RM260bil), generating nearly 4,000 jobs in Britain. And this was only the beginning.

Critics tend to underrate the importance of business success for both Britain and China. They are perhaps the most enduring of the world’s major trading nations, Britain historically and China in the past and the future.

Even before becoming “the workshop of the world”, Britain had embarked on a glo­bal empire that would span centuries. It lost its sparkle after the Second World War and decolonisation.

British interest in East Asia had centred on China, particularly trade with China. Even its presence in Borneo – Brunei, Sabah (British North Borneo) and Sarawak – were only as a staging post for trade with China on sailing ships and steamships.

The British phrase “not even for all the tea in China” is a measure of one’s resistance to temptation. And tea was only one of many traded items from China.

With the colonial period, parts of China were tugged and torn by European, Russian, US and Japanese imperial powers. China fought and lost two “opium wars” and suffered unequal relations with Britain.

Then they agreed on the return of Hong Kong to China in 1997. But even decades before that date, the buzz in Britain was what would happen to Hong Kong after the “handover”.

Hong Kong had long been known as the world’s classic capitalist enclave, while in the 1990s the West still regarded China as a communist state.

Hong Kong was in quiet panic, as celebrities and stars worried what would happen to them and their work under communist rule.

Many contemplating migration purchased homes abroad from Vancouver to Kuala Lumpur. Jackie Chan bought a luxury condominium in Damansara Heights.

At the time, an Englishman from off the streets in central England put that crucial question to me: What would happen after China “takes over” Hong Kong? I replied that Hong Kong would instead take over China in many ways that mattered. Soon after 1997, Deng Xiaoping’s credo of “it’s glorious to be rich” was abundantly clear throughout the land, often excessively so.

In time, anxieties over the handover were soothed, and it ceased to be an international issue. After moving to the United States and working in Hollywood, Chan returned to Hong Kong and even began work in China itself. His trajectory has been instructive and symbolic. So his presence as an invited guest at a reception for Xi in London’s Lancaster House on Wednesday evening said it all.

While London and Beijing are only too happy to see their relations on the upswing again, their critics have been at work. They have called Britain’s grand welcome for Xi fawning and embarrassingly servile.

Western criticism comes from two broad angles: the US and Europe. Both are not without their own self-interests.

In the European Union, Germany has been an early and the most extensive investor in China. Then earlier this year, Britain stole a march on all other Western countries by signing up as an early co-founding member of the China-led Asian Infrastructure Investment Bank (AIIB). After that, other US allies joined in: several EU countries including Germany, as well as Australia, New Zealand and Singapore. The US, which tried hard to stop the trend, had only Japan and Canada as recalcitrant holdouts for company.

Many Western and pro-Western countries are happy enough to do business with China in the lead, in the process helping China grow. This is despite strategic thinkers knowing that the AIIB is also a means for extending China’s reach through Central Asia and Russia to the West.

This takes the form of the infrastructure-­heavy Maritime Silk Road and the One Belt, One Road projects offering connectivity between East Asia and Europe. They possess both economic and strategic advantages.

US critics of Britain’s close partnership with China have something of an identity crisis. They have a long list of complaints against Beijing, yet they cannot stop their own corporations doing increasing business with China.

Worse still, the glittering welcome accorded to President and Mrs Xi in London compares too favourably with the one in Washington just weeks before.

Beyond some formal diplomatic niceties, President Obama reportedly threatened to impose sanctions on China. He also remains committed to the largely military “rebalancing” in China’s backyard, while keeping China at bay with the Trans-Pacific Partnership proposal dividing East Asia.

Whether the British or US approach to working with China is better, and for whom, also depends much on which is more enduring. Britain had presided over a global empire for centuries. China, a global superpower before, has millennia of experience to draw on.

Both countries share the approach of making trade their primary purpose, with any political or military posture being secondary to protect those economic interests.

The US in contrast opts for a forward military posture abroad, with any economic interest secondary by comparison. And despite Pax Americana being only 70 years old, it is already showing signs of wear.

By Bunn Nagara, who is a Senior Fellow at the Institute of Strategic and International Studies (ISIS) Malaysia - The Star

Open, inclusive partnership exemplary for development


China's President Xi Jinping and Britain's Prime Minister David Cameron attend a joint press conference in 10 Downing Street, in central London, Britain, Oct 21, 2015.[Photo/Agencies]

President Xi Jinping's pledge that China and the United Kingdom will build a "global comprehensive strategic partnership" in the 21st century will bring China-UK relations to a new level and endow their ties with a significance that goes beyond the bilateral scope.

In his talks with British Prime Minister David Cameron on Wednesday, Xi described the upgraded China-UK partnership as opening up a golden era for an enduring, inclusive and win-win relationship that will enable the two sides to jointly create an even brighter future for their relationship.

The noticeable improvement in China-UK ties has been the result of the strong political will from both sides to transcend their differences and shore up mutual respect, reciprocal cooperation and mutual learning.

During Xi's ongoing visit to the UK, the two sides have signed a number of intergovernmental and business deals worth about 40 billion pounds ($62 billion), including an eye-catching agreement that means China will partly finance a UK nuclear plant.

This nuclear project will be China's first in the West, and according to Cameron, it will create thousands of jobs in the UK and provide reliable, affordable energy to nearly 6 million homes when operational.

Such fruitful results show China and the UK are substantiating their cooperation with concrete deals. And as Cameron has said, a strong economic relationship can withstand frank disagreements on some other issues.

With the UK pledging to be China's best partner in the West and China looking to build a golden decade with the UK, the two sides have set a good example in developing ties between a major developing country and a major Western power.

Xi has stressed the open and inclusive nature of the China-UK comprehensive strategic partnership, which means the stronger bond between Beijing and London does not target any existing alliance or partnership the two have forged with other countries.

Under the principle of voluntarism, the partnership can be expanded to include other partners so as to bring benefits to more countries.

The quick reconciliation and warming of bilateral ties would not have been possible if the two sides had not deepened their mutual understanding, built mutual trust and committed to reciprocal and meaningful interaction.

We have every reason to believe China and the UK will continue to build on the current good momentum in their relations, which will not only cater to their interests but also contribute to the common prosperity of the entire world. - China Daily

Xi trip success narrows divide with West


In the 1950s, China's stated aim was to surpass the industrial achievements of the UK, which however failed. Decades later, the UK welcomed Chinese President Xi Jinping with pomp and pageantry and announced the two countries were entering a "golden age." China has roughly overtaken the UK in gross GDP, although the living standards of the Chinese still lag far behind the British.

During Xi's stay, China and Britain signed contracts worth 40 billion pounds ($61.62 billion). London will become the top offshore yuan center apart from Hong Kong. The UK also adopted measures to relax visa rules for Chinese tourists. These combined give people more faith in the comprehensive strategic partnership between China and the UK.



The embrace of China and the UK with open arms primarily proves that the West's economic alliance designed to counter China does not exist or has been overthrown. Economically, the West has more noncompliance than consent across the board to challenge China. Militarily, the West has NATO at the core, but inside it is still not united enough to pressure China. China's military pressure mainly comes from the US-Japan alliance, which is trying to involve smaller countries around China to enhance the deterrence. As China's economic development has bolstered its military might, it has increasing confidence in safeguarding the country's security.

The UK seems to have distanced itself from the Western group that may threaten China and explicitly wants to befriend us. As an important member of the Western world, the UK's decision to usher its ties with China into a "golden age" has symbolic significance.

But when it comes to ideology, the old divide comes up again between China and the West. Over political and values conflicts, countries like the UK, Germany and France, which endeavor to advance their bonds with China, return to the Western formation.

The external ideological pressure is one of the thorniest issues for China currently, and has huge influence on China's domestic values debate.

Common values have been the prominent bond in the West after WWII, but it is definitely not omnipotent. The divergence on values is the biggest difference between China and the West, which requires mutual respect and will to accept. We often feel the West is arrogant and aggressive in terms of ideology, which may partly come from a sense of insecurity due to internal divergences.

The UK mirrors our own changes and informs us that the times when the outside world united to counter China have ended or never existed. But there is still a long road before disputes on ideological issues between China and the West can be solved. Yet we have more achievements and hopes in this regard than difficulties and uncertainties. Compared with the huge pressure from the West in the past, we have gone so far and clearly know our future path. - Global Times

Related post:


Buckingham Palace prepares for Xi Jinping visit President Xi Jinping's visit will also receive a warm welcome from the British...

State of Malaysian economy: to grow 4~5% in 2016, lead by domestic demand



PETALING JAYA: The Malaysian economy is expected to remain steady in 2016, with real GDP growth between 4% and 5% led by domestic demand, according to the Economic Report 2015/2016 drawn up by the Ministry of Finance (MoF).

Private sector expenditure will remain the main driver of growth with private consumption and investment expected to grow by 6.4% and 6.7%, respectively.

The government also remains committed to fiscal consolidation, with the fiscal deficit expected to further decline to 3.1% of gross domestic product (GDP) in 2016 (2015:3.2%) while the Federal Government debt level will remain manageable with the prudent limit of 55% of GDP.

Meanwhile government expenditure is forecast to expand, albeit at a moderate pace, in line with efforts to strengthen the fiscal position.

On the supply side growth is expected to be broad-based, with all the sectors registering positive growth, the MoF said.

Malaysia's external position is forecast to remain positive supported by better prospects for global growth and trade.

Against this backdrop, the nominal gross national income (GNI) per capita is expected to increase by 5.6% from RM36,397 in 2015 to RM38,438 in 2016.

With total investment surpassing savings, the savings-investment gap is expected to narrow between 0.5% and 1.5% of GNI.

The economy will continue to operate under conditions of full employment with the unemployment rate remaining below 4%.

Despite the weak ringgit, inflation is expected to remain benign attributed to low oil prices and the waning impact of GST.

For 2016, inflation is expected to range between 2% - 3%.

Slower GDP growth in 2016

THE Malaysian economy is expected to grow between 4% and 5% in 2016 as domestic demand is expected to offset the drag on the economy from a slowdown in growth in emerging markets, particularly China.

Lower commodity prices, depreciating currencies in emerging markets and volatility in financial markets will be hurdles to economic growth but that will be counterbalanced with activity by the private and public sectors..

“Strong economic fundamentals such as benign inflation and stable employment supported by accommodative monetary policy are expected to support growth,” says the report.

Private investment is expected to rise by 6.7% with higher investment by the manufacturing and services sectors.

Private consumption is expected to rise by 6.4%, aided by stable employment and favourable wage growth. In the public sector, public expenditure is expected to grow by 2.7%.

Public investment is forecast to grow by 2.3%. Public consumption is expected to increase by 3%.

The services sector is projected to grow by 5.4% and see its share of GDP increase to 54% with all subsectors posting growth.

The information and communication subsector is projected to grow by 9.6% and real estate and business services subsector by 7.1% aided by construction activity while the transport and storage subsector is projected to grow by 5% helped by the expansion in port and rail services, along with improved bus services.

Manufacturing is projected to grow by 4.3% aided by growth in advanced economies.

The agriculture sector is forecast to expand by 1.3% with improvement in the plantation sector and stronger growth in the food commodity subsector.

Production of crude palm oil is expected to grow by 1% to 20.1 million tonnes and rubber by 0.7% to 680,000 tonnes.

Malaysia is expected to register a smaller current account surplus with gross exports anticipated to increase by 1.4% led by manufactured exports.

Gross imports are expected to turn around and grow at a faster pace of 3% supported by higher public investment and capital spending in the manufacturing and services sectors.

Import duty exemption on 90 tariff lines in the manufacturing sector is expected to provide relief to about 900 companies.

Stable wage growth and employment prospects are expected to support demand for consumption goods and as import growth rise faster than exports, the trade surplus is projected to be lower at RM73.2bil of 5.9% of GDP compared with RM85.3bil in 2015.

For 2016, the transport and other services accounts are expected to remain in deficit following improved prospects for trade-related and investment activity. The surplus of the travel account is projected to grow to RM33.9bil from RM29.8bil driven by higher tourist arrivals.

Malaysia is expected to register a smaller current account surplus with gross exports anticipated to increase by 1.4% led by manufactured exports. Gross imports are expected to turn around and grow at a faster pace of 3% supported by higher public investment and capital spending in the manufacturing and services sectors.

Stable wage growth and employment prospects are expected to support demand for consumption goods and as import growth rise faster than exports, the trade surplus is projected to be lower at RM73.2bil of 5.9% of GDP compared with RM85.3bil in 2015.

The services account is expected to improve to RM11.4bil from a deficit of RM14.7bil in 2015.

With higher imports projected, the goods and services account is envisaged to post a lower surplus of RM63.7bil.

The primary account is expected to register net outflows of RM33.7bil in 2016 from RM33.2bil due to higher repatriation of profits, dividends and interests accuring to multinational corporations in Malaysia.

The secondary income account will still be in deficit amounting to RM18.7bil mainly due to sustained demand for foreign labour.

As inflows will be larger than outflows, due to the surplus in the goods and services account, the current account is forecast to be in a surplus of between 0.5% and 1.5% of gross national income.

State of the Malaysian economy



THE economy is expected to grow at a lower pace next year compared with 2015 as the government projects slower growth in the manufacturing, services and construction sectors.

The report said GDP was expected to expand between 4% and 5% in 2016 compared with the 4.4% to 5.5% growth estimated for the current year.

Domestic demand was expected to offset the drag on the economy from a slowdown in growth in emerging markets, particularly China.

Lower commodity prices, depreciating currencies in emerging markets and volatility in financial markets will be hurdles to economic growth.

However, these would be counterbalanced with activity by the private and public sectors, with private expenditure the main anchor while public expenditure will increase moderately.

To boost the economy, the Government has raised allocation for development spending by 6.1% to RM49.2bil, while operating expenditure will remain at RM215.2bil.

The increase in spending will be matched by higher revenue in 2016 forecast at RM225.6bil. The fiscal deficit in 2016 is projected at 3.1% of GDP.

Trade surplus is projected to be higher in 2015 at RM85.3bil, or 7.3% of GDP.

Debt level



The level of Government’s debt is projected to increase RM627.5bil, or 54% of GDP in 2015 from current RM582.8bil last year, or 52.7% of GDP. Household debts level remained high at 88.1% of GDP at end of August, up from 86.8% of GDP at the end of 2014.

Fiscal consolidation

The government will continue its fiscal consolidation in 2016 as it seeks to achieve a balanced budget by 2020 but it acknowledges there will be challenges from external sources.

It emphasises that while it ensures strong public finances, fiscal policy will continue to support economic growth and improve the people’s well being.

“With all the measures in place, the fiscal deficit is projected at RM38.8bil or 3.1% of GDP in 2016 (2015: 3.2%),” it said.

The fiscal deficit has come down from 6.7% in 2009 to 3.4% of GDP in 2014.

Revenue collection



The government expects revenue to increase by 1.4% to RM225.70bil due to higher tax revenue.

For instance, collection from oil-related revenue is expected to increase by 1.7% to RM265.2bil (2015: RM260.7bil).

Due to the implementation of the managed float fuel pricing system, subsidies, incentives and assistance will remain low at RM26.1bil (12.1%), reflecting a more targeted subsidy mechanism to reduce market distortions and leakages.

GST



The government projects to collect RM39bil from the Goods and Services Tax (GST) in 2016 – which is about 3.1% of the GDP as it seeks to achieve a balanced budget by 2020.

Since the GST was implemented in April, collection was RM27bil, higher than the earlier projection of RM21.7bil.

For 2016, GST’s collection will reflect a full 12-month of the tax implementation that had replaced the Sales and Services Tax (SST).

The higher collection will offset the contraction in oil-related revenue that has been the main revenue source for the Government.

Inflation, employment



Inflation rate is expected to increase from 1.9% in 2015 to between 2% and 3% in 2016.

However, the government expects the unemployment rate to decline from 3.1% in 2015 to 2.9% in 2016.

Strong economic fundamentals such as benign inflation and stable employment supported by accommodative monetary policy are expected to support growth.

Medium-term fiscal framework



The government also announced under the medium-term fiscal framework (MTFF) for 2016 to 2018, its revenue was estimated to be RM729.50bil.

The projection for the three years was based on the assumption that US light crude oil would be between US$48 and US$60 per barrel and oil production to be 600,000 barrels per day.

On Friday, US crude oil was trading below US$46, which is sharply lower than the near US$100 in July 2014.

The three-year framework expects non-oil revenue to be RM631.60bil and non-oil revenue RM97.9bil.

The government’s operating expenditure is expected to be RM685.7bil during the period and gross development expenditure RM153bil.

http://www.thestar.com.my/Business/Business-News/2015/10/23/The-very-rich-to-pay-more-income-tax/?style=biz

http://www.thestar.com.my/Business/Business-News/2015/10/23/Business-highlights-of-Budget-2016-proposals/?style=biz

http://www.thestar.com.my/Business/Business-News/2015/10/23/Slight-increase-in-Federal-Government-revenue/?style=biz

http://www.thestar.com.my/Business/Business-News/2015/10/23/Govt-sees-oil-trading-US$48-to-US$60-in-2016-to-2018/?style=biz

http://www.thestar.com.my/Business/Business-News/2015/10/23/Domestic-demand-to-drive-GDP-growth/?style=biz

http://www.thestar.com.my/Business/Business-News/2015/10/23/Business-highlights-of-Budget-2016-proposals/?style=biz

Related post:




Prime Minister Najib Abdul Razak is tabling Budget 2016 themed ‘Prospering the Rakyat’ in the Dewan Rakyat. Budget 2016 is the fir...

Budget 2016: Malaysia not bankrupt ! PM said



http://english.cntv.cn/2015/10/24/VIDE1445654042676167.shtml






Prime Minister Najib Abdul Razak is tabling Budget 2016 themed ‘Prospering the Rakyat’ in the Dewan Rakyat.

Budget 2016 is the first budget under the 11th Malaysian Plan but it is also the toughest the prime minister has had to work on.

This is amid falling revenue due to the drop in commodity prices, on top of the need to keep the country's deficit in check.

In his speech, the prime minister said Malaysia is not a failed state or bankrupt and stressed that the fundamentals are still strong.

The house erupted when Najib took a jibe at the opposition, saying that the opposition, which at first opposed the goods and services tax (GST), has now included it in their alternative budget.

Budget allocations:

- 2016 Budget allocates a total of RM267.2 billion, an increase from a revised allocation of RM260.7 billion for 2015. The initial allocation for 2015 was RM273.9 billion.

- For 2016, federal government revenue collection is projected at RM225.7 billion, up RM3.2 billion from 2015.

Taxes:



- Income tax increased from 25 percent to 26 percent for people earning between RM600,000 and RM1 million. Increased to 28 percent for those earning above RM1 million.

- Goods and services tax to increase government revenue by RM39 billion, versus RM27 billion in the first eight months of 2015. Some basic goods to be zero-rated, including over-the-counter drugs, baby milk, nuts-based food, noodles.

- Price of oil expected to remain low in 2016, so collection from oil-related resources expected to be around RM31.7 billion.

- Prepaid phone users will get GST rebate, which will be credited to their accounts. From Jan 1 next year.

- For medicine, it would be increased from 4,215 kinds of medicine to 8,630 kinds of (zero-rated GST) medicine.

- If Malaysia has no GST, national deficit will be 4.8 percent. With GST, deficit expected to be 3.1 percent for 2016.

- If Malaysia stuck to the sales service tax (SST), collection would only be RM18 billion. Whereas GST has netted RM39 billion.

- National revenue would reduce by RM21 billion if there was no GST.

- GST flat rate: all controlled medicine, including 95 brands of over-the-counter medicine used for diseases such as cancer, high blood pressure and heart diseases.

- More Small-time farmers can register under flat-rate GST scheme and increase two percent income - threshold for those who can apply decreased from RM100,000 to RM50,000.

- Exemptions from GST for all items that are being re-imported after being temporarily exported for promotion, research or display.

- For oil and gas industries, GST exemptions given to re-import of equipment exported temporarily for rent. For teaching material and equipment, for skills and vocational training. Tax relief:

- Parents with disabled children get RM6,000 tax relief and another RM14,000 if their child furthers their studies.

- Tax exemption of RM8,000 instead of RM6,000 for children above 18 in an education institution both local or overseas.

- Children supporting parents, even if not living together, will receive a tax relief of RM1,500 for both parents, if the parents are above 60.

- Tax exemption of RM4,000 instead of RM3,000 for those with a spouse with no income.

- Middle class families with a household income between RM3,860 and RM8,320 will get RM2,000 tax relief for every child under 18.

BR1M:

- BR1M to be continued. Based on response, Najib says the people are thankful for the help. BR1M allocations to be increased, with one new category.

- For those earning below RM1,000, BR1M increased to RM1,050

- Those earning below RM3,000, BR1M increased from RM900 to RM1,000

- Those earning RM3001-RM4,000, BR1M increased from RM750 to RM800

- Single people aged 21 and above earning not more than RM2,000, BR1M increased from RM350 to RM400

Minimum wage:

- Minimum wage to increase from RM900 to RM1000 a month for Peninsular Malaysia, except for domestic workers.

Expenditure:

- RM50 million to improve prison security measures

- RM13.1 billion to improve safety and national security.

- RM4.6 billion for vaccine, consumables, medicine in public hospitals.

- RM30.1 billion is allocated to the economic sector.

- RM13.1 billion is earmarked for education and training, health, housing and the well-being of the people.

- RM5.2 billion is allocated to the security sector.

Development:

- 2,000 affordable homes for the military, starting 2016.

- RM180 million to set up the National Disaster Management Agency.

- The government has allocated RM52 million for 328 1Malaysia clinics. Apart from this, 33 new 1Malaysia clinics will be opened.

- Five new hospitals will be constructed in Pasir Gudang, Kemaman, Pendang, Maran and Cyberjaya. Kajang Hospital to be redeveloped.

- RM150 million will be allocated to improve 11,000 homes belonging to the poor in rural areas.

- A total of 5,000 Rumah Pr1ma housing units and PPA1M to be built in 10 locations near LRT and Monorail stations, whereas 800 units of affordable homes by GLCs near MRT stations in the city centre.

- 20,000 houses for Felda, with the maximum price reduced to RM70,000 compared to RM90,000.

- The government will build 22,300 flats and 9,800 terrace houses under the Rakyat Housing Scheme.

- 100,000 houses, priced between RM90,000 and RM300,000 for civil servants will be ready by 2018.

- 10,000 Mesra Rakyat houses to be built, with RM20,000 subsidy for each unit. The government has allocated RM200 million for this.

- New boats and facilities for 1Malaysia clinics in rural areas.

- RM864 million to procure offshore patrol vessel and patrol boats.

- RM70 million interest-free loans for longhouse building in Sabah and Sarawak. Limit of RM50,000 loan for each longhouse unit.

- RM360 million will be used to improve National Service and RM160 million allocated for NGOs.

- The Pan-Borneo Sarawak Highway that is set to be completed in 2021 will be toll-free. It is 1,090km-long and costs RM16.1 billion.

- RM900 million allocated for 'Project Traffic Dispersal' at Jalan Tun Razak, to be executed immediately with the strategic cooperation of public-private sectors.

- RM42 million to build Mukah Airport in Sarawak and upgrade Kuantan and Kota Bharu airports.

- Develop Malaysian Vision Valley, 108,000 hectares from Nilai to Port Dickson, with forecast investments starting with RM5 billion in 2016.

- Execute Cyber City Centre in Cyberjaya with development valued at nearly RM11 billion over a five-year period

- Develop Bandar Lapangan Terbang or Aeropolis KLIA in 1,300 acres of land and expected to attract as much as RM7 billion investments.

- Investments estimated at RM18 billion for 2016 for RAPID Complex Project in Pengerang, Johor.

- The government will pump RM515 million for efforts to improve electricity supply in Sabah.

- RM67 million allocated for bus operation routes outside the city.

- The government will fork out RM60 million for social amenity projects and flood prevention efforts.

- RM1.2 billion will be allocated to improve Internet speed from 5mbps to 20mbps.

- The government will continue negotiations regarding high speed rail with Singapore.

- RM28 billion for new MRT projects, which would benefit two million residents

- RM730 million for the development of chemical industry, electronic and electrical machinery, aviation, medical equipment and services.

- For Felda settlements, RM200 million will be used improve roads in these areas.

- The government will fork out RM1.4 billion to improve rural roads nationwide. Aid:

- Aid for students slashed from RM540 million to RM350 million. In the past, RM100 aid was for all primary and secondary students. However, it has now been limited for students whose household income is less than RM3,000.

- A total of 1.2 million students will receive the 1Malaysia book voucher worth RM250.

- RM300 a month aid for poor senior citizens.

- RM662 million has been set aside to help children from poor families - aid of RM100-RM450 a month.

- RM2 billion allocated for aiding the disabled, senior citizens and poor families. RM350/month for working disabled persons, RM200 for those who are unemployed. RM300 a month for those who are bed-bound.

- Skim Khairat Kematian - RM1,000 to be continued

- RM100 aid for households with income below RM3,000. Expected to benefit 3.5 million students.

Others:

- To enable more workers to benefit from Socso, there will be compulsory savings of up to RM4,000 instead of RM3,000.

- RM200 million for first home deposit funding scheme.

- RM40 million to do infrastructure and easy loan programmes for Chinese residents of new areas to pay land premiums and house restorations.

- RM50 million by SME Bank to help small Indian entrepreneurs.

- RM100 million for Indian socio-economic development programmes.

- Tekun to provide RM100 million loan for Indian entrepreneurs.

- RM90 million allocated as micro-credit loans for small traders and Chinese businessmen.

- RM300 million allocated to improve the welfare and development of the Orang Asli community.

- Government aims for 30 percent women involvement in decision-making levels in public and private sectors.

- All economy class flights will be exempted from GST for rural routes.

- Malaysia has agreed to the Trans-Pacific Partnership Agreement (TPPA) in principle, while it has inked 13 Free Trade Agreements (FTA).

- For farming, RM5.3 billion will be used for the purpose of modernisation.

- The tourism sector is expected to contribute RM103 billion. To make it more convenient for tourists, e-Visa for seven countries will be made available in mid-2016.

- The poverty rate has been reduced to 0.6 percent in 2014 from 3.8 percent in 2009. In fact, extreme poverty has almost been wiped out.

Related:

Budget 2016 Sets Stage for Next Five Years



Malaysia's Tax Structure No Longer Competitive: Deloitte's Yee

Thursday, 22 October 2015

6 Singapore church leaders found guilty of fraud over pastor's wife's failed S$50m music career

City Harvest Church founder Kong Hee (R) and his wife Sun Ho arrive at the State Courts in Singapore
VIDEO: A Sun Ho music video, featuring Wyclef Jean
A video from an English-language single, "China Wine", shows her dancing intimately with rapper Wyclef Jean, sparking criticism that she had betrayed her calling as a Christian pastor.

Six religious leaders in Singapore who used $50 million in church funds in a failed bid to turn the pastor's glamorous wife into a global pop star have been convicted of fraud.

Top left to right: former finance manager Serina Wee, founder Kong Hee, former finance manager Sharon Tan. Bottom left to right: , deputy senior pastor Tan Ye Peng, former treasurer John Lam, and former fund manager Chew Eng Han. Photo: Reuters

After a two-year trial that captivated Singapore with tales of lavish spending and financial deceit, pastor Kong Hee and five aides were found guilty of diverting $Sg24 million ($24 million) to finance his wife Sun Ho's music career, which was portrayed as a religious mission.

The six were also found guilty of misappropriating another $Sg26m from City Harvest Church to cover their tracks, prosecutors said.

Ms Ho, who starred in a music video with rapper Wyclef Jean, was not charged.

The church said Ms Ho's music could be used to attract followers.

On Wednesday, Judge See Kee Oon found the accused guilty of criminal breach of trust or falsification of accounts, or both.

The maximum penalty for criminal breach of trust, which all six were convicted of, is life imprisonment, according to the penal code.

The six were granted bail before their sentencing date, which has not yet been set.

The glamorous couple fell from grace after the leaders were charged in 2013 and the court was told how church funds were spent on music videos, marketing and a luxurious lifestyle

Prosecutors said Kong and his subordinates engaged in a practice called "round-tripping" by channelling money allotted for a church building fund into sham bonds in linked companies so they could finance Ms Ho's music career.

They falsified church accounts to make it appear the bonds were redeemed, prosecutors said. - AFP


Singapore megachurch leaders hit a sour note in pop music fraud case

SINGAPORE (Reuters) - The co-founder of a Singapore church and five other leaders were convicted of multi-million dollar fraud on Wednesday for diverting money to support his wife's pop singing career, a rare fall from grace in the tightly regulated city-state.

The mix of money, faith and scandal in the case has fascinated the public in affluent Singapore, where such cases are rare under a system with little tolerance for corruption.

Senior pastor Kong Hee heads City Harvest Church, one of a growing number of Singapore's megachurches preaching "prosperity gospel" that blends spiritual and material aspirations. (http://reut.rs/1LCxhXr)

The churches have ambitions to turn Singapore into a centre for evangelical Christianity and to export their faith to the world. Kong was arrested and charged in 2012 with criminal breach of trust and falsifying accounts.

The six church officials were convicted of diverting nearly S$51 million (£23.97 million) in funds to advance the career of Kong's wife, Ho Yeow Sun.

"There is no doubt that they had something to hide ... They knew they were acting dishonestly," Judge See Kee Oon said in convicting the six in the Singapore subordinate court.

Ho has focused on the Mandarin pop market and has released albums, including "Embrace", through Warner Music Taiwan.

A video from an English-language single, "China Wine", shows her dancing intimately with rapper Wyclef Jean, sparking criticism that she had betrayed her calling as a Christian pastor.

Ho, the co-founder and executive director of the church, was not charged in the case.

The church, which had around 17,000 members last year, has stuck by its leader. It held a prayer session for Kong and others on Tuesday night and Ho issued a message of support after the court ruling.

"Thank you for your unwavering faithfulness in loving God and loving one another. More than ever before, let’s have a unity that is unbreakable," she said on the church website.

(Reporting by Rujun Shen; Writing by Rodney Joyce; Editing by Paul Tait)


Correcting DNA mistakes

Using the knowledge of how the cell repair systems work will open the door to more effective cancer treatments



UNDERSTANDING how our cells repair damaged DNA, a breakthrough which earned the Nobel Chemistry Prize recently, could make cancer treatment more effective, experts say.

By revealing how our cells automatically fix DNA mutations which can lead to illness, the discovery opened the door to significantly improving chemotherapy’s effectiveness against cancer, which kills some eight million people worldwide each year.

“You can use this knowledge to destroy cancer,” said Nora Goosen, a DNA repair expert at Leiden University in the Netherlands.

Chemotherapy attacks cancer cells by trying to scramble their genetic code and thus their ability to multiply, but cancer cells, just like healthy ones, do not give up without a fight.

he cell repair systems are going to try to undo the work of doctors by fixing the damage the doctors were trying to inflict,” said Terence Strick, a DNA repair researcher at the Jacques Monod Institute in Paris.

One solution would be to inhibit the ability of cancerous cells to self-mend.

“If you attack these repair mechanisms (in cancer cells) in combination with chemotherapy and other drugs ... it (treatment) can be more effective,” Goosen said.

Sweden’s Tomas Lindahl, Paul Modrich of the United States and Turkish-American Aziz Sancar were awarded the top chemistry award for unravelling the process by which our cells repair mutations caused to DNA by the Sun or carcinogenic substances found in alcohol and cigarettes, for example.

Mistakes in DNA, the chemical code for making and sustaining life, can cause cells to malfunction, age prematurely, and become cancerous.

The vast majority of changes to our DNA are immediately corrected, but some accumulate and lead to cancer. Some people are more susceptible to cancer because their DNA repair response is faulty.

Ironically, the same repair mechanism identified by the Nobel laureates can also cause cancerous cells to resist the effects of cancer treatment.

Alan Worsley, a spokesman for the charity Cancer Research UK, said new drugs are being developed to fight the disease.

He cited the treatment olaparib, which stops cancer cells from fixing DNA damage. It was approved by the European Commission in December 2014 for use in Europe.

Alain Sarasin of France’s CNRS research institute highlighted the risks of interfering with DNA repair systems.

“We don’t yet know how to target tumour cells specifically. If we gave a patient a molecule which inhibits the self-repair mechanism of cancer cells, it may also inhibit the repair systems of other cells like white blood cells,” he said.

“If, one day, we have a molecule which reinforces the DNA repair and can be targeted to blood cells, for example, followed by chemotherapy after, this would allow us to increase the chemotherapy dosage without unintentionally killing blood cells.

“For now, we don’t know how to do that.” – AFP

Related posts:


Developed for Communist troops fighting in the Vietnam War, Tu Youyou's treatment was major breakthrough in global fight against malari...





Scientists Finally Discover How the Obesity Gene Works 
Scientists have finally figured out how the key gene tied to obesity makes people fat, a major discovery that could open the door to an entirely new approach to th

Rightways