Philippines violates UN Convention

The Philippines detained 11 Chinese fishermen for unverifiable crime after seizing their vessel near China's Half Moon Shoal in the South China Sea on May 6. On Monday, the Philippines defied China's demand to free the fishermen and charged nine of them with poaching more than 500 endangered sea turtles. Two fishermen, both minors, will be sent back home.

By doing so, the Philippines has violated the United Nations Convention on the Law of the Sea, which it has been trying to use to legalize its claim on China's islands in the South China Sea.

China has indisputable sovereignty over the Nansha Islands and their adjacent waters in the South China Sea. In May 2009, Malaysia and Vietnam jointly submitted to the Commission on the Limits of the Continental Shelf a notification of the two countries' continental shelf claims in the South China Sea, and Vietnam also unilaterally made another submission. In response, China submitted its map of the nine-dash line attached to two note verbales to the UN to refute the two countries' extended continental shelf claims. In the notes, China stated that it has the sovereignty and sovereign rights over the territorial sea and exclusive economic zones of Nansha Islands.

Since Half Moon Shoal is part of the Nansha Islands, Manila has no right to detain any vessel or fisherman fishing in its waters. By doing so, it has violated international norms for the fishing industry, as well as the UNCLOS.

China has been exercising its administrative jurisdiction over the Nansha Islands and its surrounding waters by carrying out normal maritime operations. But of late, Chinese fishermen have not been feeling safe in the South China Sea because of the belligerent attitude of some countries locked in territorial disputes with China.

According to the UNCLOS, after being authorized to fish in some exclusive economic zones, countries should abide by the laws and regulations of the coastal states when it comes to the management and conservation of resources. The coast guard of a coastal state could board and check the relevant documents of vessels fishing in the waters near its coast if they violate these laws and regulations. It could even detain the fishermen. But under no circumstances, should the fishermen (or other people on board the vessels) be subjected to corporal punishment and imprisonment.

Moreover, Manila has failed to honor the regional order. The UNCLOS says the disputing countries should resolve the issue of overlapping economic zone boundaries through agreements on the basis of international law in order to achieve an equitable outcome. In case the disputing countries fail to reach an agreement, they should try to work out a provisional arrangement and, during the transition stage, both sides should avoid taking unilateral actions that could hinder the possibility of a final agreement.

The Nansha Islands are within 400 nautical miles of all the countries locked in the South China Sea disputes. Since China has sovereignty over the islands, its duly exclusive economic zone overlaps with those of the other disputing countries. So it's important that Manila faces up to a sea boundary delimitation dispute with Beijing.

To maintain regional stability and to resolve the disputes in the South China Sea through peaceful means, China and ASEAN signed the Declaration on the Conduct of Parties in the South China Sea in 2002. Beijing's proposal of "shelving the disputes and conducting joint exploration" got positive response from the disputing countries and praise from the international community. This could be regarded as a provisional arrangement for the ultimate resolution of the disputes.

But using its advantageous geographical position and assuming that the disputed areas are part of its territory, the Philippines has been seizing Chinese fishing vessels and detaining Chinese fishermen. Such provocative actions by the Philippines are worsening the already tense atmosphere in the region.

It should thus be clear to the international community that Manila, not Beijing, has violated the DOC and the UNCLOS, as well as further damaged the fragile Sino-Philippine relations. And justice chooses those who choose to side with it.

Contributed by Li Jieyu (China Daily)

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Car or house buying cooling off measures?

Cooling off measures for car purchases also?

Key points: 

(1). Higher percentage of bankruptcies from inability to repay cars HPs than housing loans.
(2). The second largest household debt component, about RM145bil, is paid for an asset that is contracting in value every year.

WHAT are the considerations when you purchase a car?

Are the model and its functions important? Does the status symbol carry more weight? Or affordability is the main concern? Don’t get me wrong, I am not conducting a survey to change my profession. I am just curious to find out the major considerations of purchasing a car.

The topic interests me as car ownership among Malaysians, especially the young adults keep increasing. Many times, their choice of car is somewhat extravagant compared to the income they may be generating at this early stage of their careers.

This issue caught my attention when a news report last month stated that 122,169 Malaysians were declared bankrupt between 2007 and 2013, according to the Department of Insolvency. About 26% of the bankruptcies were due to the inability to settle the hire-purchase payment for vehicles, which involved 33,570 people since 2007.

When I searched further for other causes of bankruptcies, the available information for the period from 2005 to May 2010 indicated that car loans was also the chief reason for bankruptcy during that period. It was followed by 11.8% due to personal loans, 10.9% of bankruptcies due to non-repayment of business loans, and only 7.5% was caused by housing loans. Looking at the statistics, it is significant that for many years, more than one-fourth of bankruptcies in our country had been caused by car loans. It reflects on the household stress in repaying car loans, and this high default rate should trigger some thoughts among the authorities and the people.

According to Bank Negara statistics, as at April 2013, housing loans account for 57.5% of total household debts, while car loans, personal loans and credit cards account for 26.5%, 10% and 6% respectively. It means that the second-largest household debt component, about RM145bil, is paid for an asset that is contracting in value every year.

I wonder how many households are struggling to repay their car loans today, and how many of them, especially the younger generation, have deferred their financial wealth planning because of car loans? With the high percentage mentioned above and the rising household debt, there arises the question of whether cooling-off measures should also be extended to the car industry which is causing severe household stress.

Cooling-off measures for the car industry that can be considered include shorter loan period, more stringent loan-to-income ratio, and to impose certain charges if a car owner purchases additional cars in less than a certain number of years. These measures may help to reduce the number of cars on the road and discourage household spending on private vehicles. In the process, we will also be reducing traffic jams.

As shared in my previous articles titled “Reality Check on Debt Mountain” and “Good Debt, Bad Debt”, a car depreciates 10% to 20% per year based on car insurance calculation and accounting practice. In contrast, housing loans have underlying assets that are likely to appreciate over the long term.

Depreciative asset

Do we want to defer our financial planning instead and trade our opportunity of owning an appreciative asset for a depreciative asset? Perhaps, the authorities should encourage the people to borrow only for very good reasons, and to purchase assets only after thorough research.

This reminds me of an episode that I am personally aware of. It goes back to the early 1900s, when a 16-year-old migrant from China came to Malaya (now Malaysia) to seek a living, with no money in his pocket. Due to his diligence, hardwork and frugality, he was able to marry a young pretty girl ten years later and start a family and they eventually had 13 children.

What was astonishing is that he was able to send 7 of his 8 sons overseas for their tertiary education, all due to his frugality, hardwork and integrity. When he passed away, he was even able to leave behind a legacy of a bus company with over 30 buses and 4 small pieces of land in a small town.

Would this episode stimulate our young people to contemplate about what is best for their future?

Although the cooling-off measures for the car sector may be a new idea to ponder, however, with the Government’s plan to upgrade our public transport facilities and services, it is an area for consideration to increase public transport usage and encourage healthy financial planning in the long run.

After all, if senior executives in major cities like London and Tokyo are comfortable using public transportation to commute in their daily lives, can we not also do likewise (if our public transportation are improved)?

Coming back to the questions I asked in the beginning of this article... while I understand people put emphasis on different features of a car depending on their requirements and stage of life, it is always good to include the affordability aspect in a car purchase decision, so as not to be dragged down by the car which is bought to carry us forward.

P/S: The 16-year-old migrant happened to be my late father. He passed away at the age of 63 in 1962.

Contributed by Datuk Alan Tong

FIABCI Asia-Pacific regional secretariat chairman Datuk Alan Tong has over 50 years of experience in property development. He is also the group chairman of Bukit Kiara Properties. For feedback, please email feedback@fiabci-asiapacific.com. The views expressed are entirely the writer's own.

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Happy Wesak Day, Eject those who sow seeds of hatred

TODAY is an auspicious day in the Malaysian calendar as Buddhists celebrate Wesak Day. Buddhism, like all other religions, espouses peace and harmony among fellow men.

It is a way of life that is meaningful and to be cherished in any society, more so in a pluralistic environment, which is the hallmark of our beloved Malaysia.

Exactly 45 years ago this day, Malaysia as a young country, 12 years of age, experienced its most shameful and infamous day when brother rose against brother resulting in grief, sorrow, bloodshed and loss of life. The psyche of the nation was scarred and is a permanent blot in our history! Have we learnt?

Those who are currently below 45 years of age, or children at that time, will never be able to fathom the deths to which our country descended and the reasons behind it. If in 1966, US President Lyndon B. Johnson was shown rubber trees, in 1969 there was only carnage and untold suffering to show. Yet under able leadership, like a phoenix, Malaysia arose and showed so much more recently to President Barack Obama, 48 years on. We are proud of this.

Lessons were learnt on racial polarisation and the needs of the various communities. Malaysia progressed rapidly to what it is today, a nation which has surpassed most of its immediate neighbours in development.

Yet today, there are destructive forces prevailing which can bring our nation down to its knees in an instant. We have much to learn from religious precepts on tolerance and peace which will contribute to our future well-being.

Former Prime Minister Tun Dr Mahathir Mohamad said: “I think people are not learning from their past. There is no benefit in having confrontation, tension, instability. What’s the good of fighting? You kill each other but in the end what do you get?” Whatever means employed by him to keep rebel-rousers, who were out for political mileage, in check under his watch has made Malaysia what it is today.

Questions are now being raised as to what certain communities have done to merit citizenship and even referred to as trespassers. Is there a memory lapse here? Is this a rational, educated comment to make to fellow citizens borne and bred in Malaysia who are without any form of allegiance or political affection to the countries where their forefathers came from be it Indonesia, China, India, or wherever else!

All have contributed to nationbuilding in one way or the other and all save, the orang asli, are immigrants. These are undeniable facts. Let us not rewrite history based on emotion and be misled by myopic, ill-informed shamans who profess otherwise!

Perhaps this is due to ignorance and the failure of our education system in imparting history correctly. This can be easily remedied by re-education on Malaysian history. Everything needs to be rational and have limits!

All religions fully subscribe to one tenet which is non-negotiable - speak the truth!

Najib has got the correct “thinking cap” on when he says that he is the leader of all Malaysians, irrespective of race. This is the way to go for a united Malaysia. We do not need loose cannons spouting hatred and ill-will through hurtful words.

The Prime Minister has to speak louder and clearer to counter such irrational manifestations. Otherwise a heavy price will be paid in terms of our continued economic development.

The golden years of Islamic civilization, the Renaissance and the Industrial Revolution were all marked by periods of peace and stability

As a nation, we should not forget what it means to be on one ship paddling together in the same direction. We have to be one cohesive force. Those who sow seeds of hatred should be ejected.

We live in a country with many religions yet our conduct in certain instances is anything but religious! All religions call for the bringing together of people irrespective of race, colour or creed to live in a harmonious relationship working for the common good.

We should not be traitors to our Creator, faith and religious beliefs.

Let this Wesak Day which falls on the 45th anniversary of that fateful day, heighten our senses to what can go so terribly wrong in beautiful Malaysia.

As Malaysian citizens we all have a part to play in burning at the stake demonic forces which are threatening to tear our peace loving, tolerant and accommodative way of life apart.

Religion must keep us together and not drive us apart. In the coming years we can be greater if only we do not shoot ourselves in the foot first. Racial and religious intolerance has to be obliterated.

Happy Wesak Day!

Contributed by WALTER SANDOSAM Kuala Lumpur

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Wishing all a blessed Wesak…