‘Cina Babi’ (Chinese Pigs)’s economic invasion of Malaysia, what say racial and religious bigots?

‘Cina Babi’ (Chinese Pigs)’s economic invasion of Malaysia, what say racial and religious bigots?

No News Is Bad News has previously highlighted the “invasion” of investments from China into Malaysia. (Read these for context: http://victorlim2016.blogspot.my/2016/09/asia-dumps-us-for-china-1mdb-pm-najib.html, http://victorlim2016.blogspot.my/2016/08/dont-forget-chinese-russian-combined.html, http://victorlim2016.blogspot.my/2016/08/malaysia-unusually-meek-over-spratly.html, http://victorlim2016.blogspot.my/2016/08/china-steps-up-silk-route-advantage-to.html and http://victorlim2016.blogspot.my/2016/08/americans-squeezed-sidelined-by-chinese.html)

The ANN news network has come up with a detailed report on why and how China’s geo-economic interest will benefit Malaysia, Asia and Europe.

Whether the report has any hidden agenda to promote China and Malaysia, and thus the racist Umno-led Barisan Nasional (BN) federal government is another matter.

Basically, the report claims China’s economy is slowing down with maturity and now needs to expand outside China to ensure they remain sustainable and relevant in world economic dominance, and that it eventually overtakes the U.S as the No.1 superpower.

Whether Malaysia’s 1Development Berhad (1MDB) Prime Minister Najib Razak and his Umno-led BN truly and sincerely embrace and welcome Chinese investors is really still unclear.

Why the doubt?

That’s because Umno leaders have always been the champion of double talk led by Najib.

On one hand they claim to be moderates but on another they do nothing about the antics of the pro-Umno racial and religious bigots.

The most recent example was that of both Perak Mufti Harussani Zakaria and his deputy Zamri Hashim who claimed that building statues of living creatures went against the teachings of Islam.

They were referring to Tugu Malaysia (National Monument) that was constructed in memory of the soldiers who died for the country fighting the armed Communists in the 50s and 60s.

Weren’t Harussani and Zamri acting as anti-nationals when they condemned the National Monument?

Weren’t they also implying that all religious structures are also against the teachings of Islam, and should therefore be destroyed?

Yet, there is no action on the duo from the federal government after a week. That’s the type of double-standard in BN’s administration of Justice that you can expect in Malaysia.

Some pro-Umno bloggers have tried to cast doubts whether PM Najib wielded the keris.

So, Malaysia can expect billions of money from Cina Babi, a derogatory term that the ultra Umno Malays love to call the Malaysian-born Chinese community.

They also love telling the Cina Babi to Balik Tongsan (Go Back To China).

No News Is Bad News is now wondering when will action be taken against all the racial and religious bigots who have been spewing venom to fan racial and religious discord, doing Umno’s dirty work - divide-and-rule political policy to ensure they remain in power.

Here’s the ANN report as reproduced by the Malaysian-banned online news portal Malaysia Chronicle, and two other online news reports showing how “intelligent” an Umno minister can be:

"CHINA THE ELEPHANT IN MALAYSIA’S ECONOMY: AS OTHER INVESTORS FLEE NAJIB REGIME, BEIJING EXTENDS ‘LIFELINE’

Business, Politics | September 11, 2016 by | 0 Comments


THEY always say to look out for that elephant in the room, if we need to understand the dynamics of a situation or resolve a problem. The elephant is big but most people never notice it, because they always choose to focus on issues that are beyond their control.

This exact situation is now playing out in Malaysia.

Investors have their head wrapped around issues such as the negative interest rate environment, low oil prices, the slowdown in the developed world and the overall volatility in markets over the last two years.

In a time when fear and uncertainty still cloud the market, many do not realise a giant elephant lumbering in Malaysia’s humid grounds. This elephant could potentially give Malaysia a significant advantage not just for survival, but growth during tough times.

That elephant is China.

China is pouring huge money into Malaysia and most people have yet to bat an eye on the significance of this huge impact.

In times of trouble, who is it that comes to support Malaysia? It is the Chinese.

The support China has given to Malaysia via the purchase of 1MDB assets speaks volumes.

The first was the purchase of 1MDB’s energy assets in Edra Global Energy Bhd for RM9.83bil by state-owned China General Nuclear Power Corp last year.

Then in December, China Railway Construction Corp Ltd (CRCC) – one of the world’s largest construction companies – teamed up with Iskandar Waterfront Holdings Sdn Bhd to buy a 60% stake in 1MDB’s Bandar Malaysia for RM7.41bil.

A mixed property project, Bandar Malaysia is located on 196.7ha and will host terminals for the Kuala Lumpur-Singapore High Speed Rail (HSR) project.

China is also seen as the forerunner in the race for the highly anticipated RM70bil HSR project planned for launch within one to two years.

China Railway Engineering Corp (CREC), which is keen to bid for the HSR project, announced it will invest US$2bil (RM8.09bil) to build its regional centre in Bandar Malaysia.

Then in April, it was reported that China’s government has started buying more Malaysian government securities (MGS) and this inflow of new money could possibly rise to 50 billion yuan (RM30bil) in total or 8.5% of Malaysia’s total outstanding MGS in early April.

On Nov 23, Chinese Premier Li Keqiang announced that China would buy more MGS, issue yuan bonds in Kuala Lumpur and grant local institutional funds a quota of 50 billion yuan under the Renminbi Qualified Foreign Institutional Investor programme to invest directly in Chinese equities in the mainland.
“This has led to Malaysia’s foreign bond holdings going back up to over 50% and also gave our ringgit some form of stability,” says Astramina Advisory Sdn Bhd managing director Wong Muh Rong.

Foreign ownership of Malaysian government and corporate bonds rose to a 22-month high of RM240.9bil in July from RM235.2bil in June.

In particular, foreign ownership of Malaysian Government Securities (MGS) increased RM5.8bil in July to RM209.7bil. Foreigners now own 51.9% of the total outstanding MGS.

China is being opportunistic when they made major investments in Malaysia, especially for Bandar Malaysia and the EDRA Energy investments,” says Sino RH Capital (M) Sdn Bhd CEO and managing partner Scott Lim.

“It is not that Malaysia is looking more attractive. It is that China is looking at the world. This is the beginning of a new era for China in its rise as a superpower. While China has 1.4 billion people, Asean has 600 million people. Together, we will have at least 2 billion people, and that is a big portion of the world population, almost 30%. China realises that, and that is why its focus is here,” says Lim.

He added that China’s economy is clearly slowing after some 30 years of 8%-10% growth.

“Growth in the next few decades will be lower. There is a limit to how much China can export, and how much fixed assets they can invest in. The reality is that their economy has reached some sort of maturity. If you were to look at their labour cost, China’s cost is now higher than other Asean countries. China is no longer competitive in terms of wages. It is now more cost effective to produce outside of China,” says Lim.

Chinese money flooding Malaysia

“There are many China-based corporations that are looking for assets in Malaysia and other Asean countries. Not just property or land assets. They are here to invest in manufacturing, infrastructure, tourism and hospitality as well as the finance sector,” says former investment banker Ian Yoong Kah Yin.

He says a few Chinese firms are planning to invest US$200mil (RM800mil) to US$300mil (RM1.2bil) a year in Asean countries.

A China-based multi-billion dollar corporation has approached Yoong for investment advice in the Asean region.

“The Chinese are not only keen to invest in Malaysia but also in other Asean countries such as Indonesia and Thailand. Malaysia is highly regarded by Chinese corporations as the ringgit is undervalued and the country well governed,” he says.

Malaysia is politically aligned with China in the “One Belt One Road” initiative, he adds.

“A huge wave of Chinese investors are expected to come in this part of the world in the next five years,” he says.

According to Yoong the labour cost in urban areas of China has become more expensive than in many Asean countries including Malaysia.

“The Chinese are testing the water on investing in the manufacturing sector in Malaysia because of the excellent infrastructure, lower costs and the wide use of Mandarin,” Yoong says.

“The general consensus in Shanghai and Beijing is that Malaysians are honourable people and they are keen on building long-term relationships – good guanxi,” he adds.

According to the Malaysian Investment Development Authority (Mida), for the first three months of this year, China is the largest foreign investor in Malaysia’s manufacturing sector.

During that period, Mida had approved a total of nine manufacturing projects from China with investments worth RM1.5bil.

“The value of approved investments from China in the manufacturing sector has increased by more than 50%, from RM1.2bil in 2011 to RM1.9bil in 2015,” Mida chief executive officer Datuk Azman Mahmud tells StarBizWeek.

The majority of China’s investments in the manufacturing sector are mainly in basic metal, electronics and electrical, textiles and textile products and chemical and chemical products.
 
Azman reckons that Malaysia’s diversified economy, strong manufacturing foundation, developed infrastructure and connectivity, proactive government policies and good legal system are among the reasons China investors have come to invest in the country.

“It is also important to note that multiculturalism has not only made Malaysia a distinctive nation, it has also made Malaysia the only country to offer cost competitive multi-ethnic and multilingual workforce that can effectively communicate with most of the markets in the region.

Azman says that Malaysia’s policy direction and strategies such as the 11th Malaysia Plan is in line with the China government’s Outbound Investment Strategy, which focuses on building up infrastructure, construction, logistics, transportation and energy, and other new development of emerging market.

“Malaysia has signed an agreement to cooperate in production capacity and investment with China in November last year. Both governments will act as facilitators for identified projects,” he says.

“China has indicated mutual sentiments of Malaysia being a profitable investment location to serve the growing Asian markets through close investment cooperation such as the Malaysia-China 5 Year Cooperation Programme (2012-2017), Asean-China Free Trade Agreement and Renminbi Qualified Foreign Institutional Investor Programme.

“Building upon this momentum, Mida is optimistic that China will continue to invest in Malaysia for many years to come,” Azman says.

One Belt One Road

The Chinese government is putting in massive efforts into its going-global strategy under its ‘One Belt One Road’ regional economic expansion initiative.

According to a PwC report, about US$250bil (RM1 trillion) in projects have been built, recently started or have been agreed on and signed in relation to the belt and road initiative.

PwC predicts that the three-year-old belt and road initiative will mobilise up to US$1 trillion (RM4 trillion) of state financing from the Chinese government in the next 10 years.

The belt-road initiative was first announced in 2013 by Chinese President Xi Jinping. It aims at reviving the ancient silk trade route and maritime trade route, and increase connectivity between Asian, European and African continents.

Together, the belt and road covers 65 countries populated by 4.4 billion people.

Lim says China’s “One Belt One Road” initiative is a sign that China knows it is going into the maturity phase of growth. To extend their economic cycle, they have to do that sort of mapping to ensure they stay longer in the game.

“The maritime and rail connection of One Belt One Road will lead to Asean growing. That’s the way China is going to grow from now on. They can participate in the regional trade by supporting those infrastructure needs,” he says.

Meanwhile, Iskandar Malaysia has reportedly recorded a cumulative investment of RM203bil in the past 10 years, of which China contributed RM22.2bil.

China contributes close to 15% to committed investments, mainly in the property development sector such as the multi-billion mega development Forest City in Gelang Patah.

China investors still find the property, manufacturing and tourism sectors attractive.

China and its commitment to Malaysia

China has been Malaysia’s biggest trading partner.

Last week, MCA president Datuk Seri Liow Tiong Lai gave his party a tall order when he announced that MCA aimed to help the country achieve the bilateral trade target of US$160bil (RM640bil) with China by 2019.

Malaysia-China trade rose to US$120bil in 2014 from about US$100bil in 2013, although it fell to just below US$100bil in 2015 due to weak global economic slowdown.

Furthermore, the relationship between Malaysia and China isn’t merely diplomatic. Malaysia has a strong ally in the Chinese embassy here. Dr Huang Huikang, the high-profile ambassador, appears just as keen to push for initiatives that are mutually beneficial for the two countries.

Huang has announced plans for new investments from China amounting to more than RM20bil.

Huang also discloses that the total Malaysia-China joint investment in Bandar Malaysia could rise to RM150bil, when the integrated high-speed train terminal cum property project is completed.

Malaysia’s advantage

Lim says that while China is a dominating force, Malaysia can work with this force to prosper.

“When China investors come here, they bring capital and technology. They can create the paradigm shift, and we can participate in that,” says Lim.

“Malaysia is a multicultural society. We have a solid advantage in terms of languages. We are able to do business with most in the region because we can speak English, Mandarin and others. Compared to the Thais and Indonesians, communicating with the Malaysians are easier for the Chinese,” says Lim.

“If we can work well with China, then they can use us as a gateway. If our government is willing to welcome them, not just their investments, but also as a tourist and for them to make Malaysia their second home, we definitely can achieve a lot more. In short, we should encourage them to work, live and play in Malaysia,” he says.

Wong adds that there are a lot of successful Malaysian businessmen from Malaysia in China, so that is already a good start to the relationship between China and Malaysia. This alone has led to the Chinese coming to do business in Malaysia

“The Chinese feel at home here in Malaysia. They enjoy our hospitality and many of them apply to make Malaysia their second home,” says Wong.

Wong added that the Chinese have done a lot for the Malaysian economy.

“For example for the Forest City development by Country Garden, they have been bringing in buses and buses of people to come in and buy their developments.

Thee multi-billion ringgit purchase of a substantial equity stake in Bandar Malaysia by China Railway Construction Corporation is extremely significant. In the past, China Communications Construction Co was also involved in the construction of Penang’s second bridge. Meanwhile, the Xiamen university is fully funded by China government and Xiamen university. The Chinese are already very active here in terms of infrastructure works,” says Wong.

Sunsuria’s flagship project, the freehold 525-acre Sunsuria City located in Salak Tinggi has a gross development value of RM10bil with the 150-acre Xiamen University Malaysia campus being the core of the township.

The cost of the entire campus is estimated at RM1.3bil. It is the university’s first campus abroad and will have a 61ha footprint. It will be able to have a student intake of 10,000.

“When the Chinese come in to Malaysia, they don’t just bring in technical skills and capital, they also fund the projects,” she says. – ANN"

"Nazir Razak: Debt crisis risk if developers offer housing loans
Saturday September 10, 2016
05:31 PM GMT+8

CIMB chairman Datuk Seri Nazir Razak has criticised a government proposal to allow property developers to give out housing loans. — File pic

KUALA LUMPUR, Sept 10 — CIMB chairman Datuk Seri Nazir Razak criticised today a government proposal to allow property developers to give out housing loans, saying it raised the risk of a debt crisis.

The banker said focus should be on ensuring that house buyers who can afford it are able to access bank loans at fair prices, giving borrowing subsidies to the needy, and providing more affordable housing.

“Well done FMII for speaking out quickly & firmly vs a dangerous idea,” Nazir said on Instagram, referring to Second Finance Minister Datuk Johari Abdul Ghani who had reportedly described as illogical Minister of Urban Wellbeing, Housing and Local Government Tan Sri Noh Omar’s proposal to allow property developers to offer loans to house buyers.

- See more at: http://www.themalaymailonline.com/malaysia/article/nazir-razak-debt-crisis-risk-if-developers-offer-housing-loans#sthash.69Qq9pgc.dpuf"

"HBA: Ridiculous to let developers lend money
Blake Chen

| September 10, 2016

House Buyers Association says Noh Omar's proposal is ill advised.

PETALING JAYA: The National House Buyers Association of Malaysia (HBA) has questioned the wisdom of a proposal to give moneylending licences to property developers.

“It’s ridiculous,” said HBA Secretary-General Chang Kim Loong in reaction to news reports quoting Urban Wellbeing, Housing and Local Government Minister Noh Omar as saying that the ministry was considering such a proposal.

“It’s obvious that the minister was ill advised by parties with vested interests. House buyers will be dragged deeper into debt unwittingly. Such a scheme will only bring more harm than good.”

Chang told FMT that the ministry should instead be considering ways of helping house buyers get soft loans.

He noted that Noh was quoted to have said the “interest rates for loans taken under the scheme would vary from 12 per cent for loans with collateral to 18 per cent for those without collateral.”

“This is more than double what is typically offered by banks and will greatly burden the borrowers,” Chang said. “As it is, many borrowers are already struggling with housing loans with an interest rate of 5 per cent. Taking a housing loan with an interest of 12 per cent is just plainly asking for trouble.”

He pointed out that banks had invested large amounts of resources to develop the necessary tools to carry out credit assessment, collection monitoring and recovery of debts.

Developers, on the other hand, would not have the resources to invest in required hardware, systems and training, he said.

“This means the chances of borrowers defaulting on loans is very high. Developers will not be able to face the financial implications if too many borrowers start to default on their loans. These developers could go belly up and the national economy will suffer because the property market is a catalyst for growth.

“It’s possible that housing developers will eventually approach the government for bailout money, claiming that this loan scheme was a form of national service.”

Chang said he wondered whether Noh had consulted Bank Negara Malaysia (BNM) before announcing the proposal.

“We would like to ask the honourable minister if BNM has given its blessing as the failure of such a scheme can have wide ramifications for the economy and the country at large,” he said.

He urged Prime Minister and Finance Minister Najib Razak to intervene, saying the government had not addressed the root cause of high property prices.

He said the proposed scheme could encourage developers to raise property prices and tempt them to give loans to undeserving borrowers.

“This scheme, if implemented, will result in higher property prices and further exacerbate the housing crisis that Malaysia is currently facing,” he said.

“The best solution in this current climate is for developers to build and prospective buyers to rent before buying at a later date.”"