China, the largest in Asia and the world's top recipient of FDI set to be net investor

Asia the world's top recipient of FDI 

KUALA LUMPUR: Amid scratchy global economic growth, Asia accounts for nearly 30% of global foreign direct investment (FDI) inflows, making it the world’s top recipient of FDI.

Generally, developing countries were attracting more FDI than developed economies, according to the United Nations Conference on Trade and Development (Unctad) World Investment Report 2014, which said total inflows to developing Asia (excluding West Asia) amounted to US$382bil last year, 4% higher than the previous year.

In the last two years, top 10 recipients of FDI flows in developing Asia were China, Hong Kong, Singapore, India, Indonesia, Thailand, Malaysia, South Korea, Vietnam and Taiwan.

China took the lead with an estimated FDI outflow of US$101bil last year, spurred by mega-deals such as the US$15bil takeover of Canadian oil and gas company Nexen by China state-owned entity CNOOC Ltd as well as the US$5bil Shuanghui-Smithfield acquisition in the food industry.

South-East Asia registered slower growth, however, with inflows to the region rising just 7% to US$125bil in 2013, compared to the rapid growth in the regional grouping – from US$47bil in 2009 to US$118bil in 2012.

The report said Singapore was the largest FDI recipient in the region, with new mega-deals driving the figure to a record high of US$64bil.

Indonesia showed stable performance, while Thailand’s inflows grew to US$13bil although many projects were shelved due to political instability.

“At today’s level of investment in SDG-related sectors in developing countries – both public and private – we still face, according to Unctad’s estimates, an average annual funding shortfall of some US$2.5 trillion over the next 15 years following the end of the Millennium Development Goals,” UNDP resident representative for Malaysia, Singapore and Brunei Michelle Gyles-McDonnough said at the launch of the report at the Malaysian Investment Develop-ment Authority headquarters.

She highlighted the important linkages between trade and investment, amplifying the need for sustainable development.

-Contributed by Cheryl Pod,The Star/Asia News Network

China's outward investment to soon exceed FDI, set to be net investor

Outward flows likely to exceed FDI in nation this year, UN report says

China's outward investment is very likely to exceed foreign direct investment inflows this year, making the country a net investor, according to officials at a United Nations body.

This "inevitable trend" will have "great significance in reshaping the economic structure and long-term development" of the world's second-largest economy, they said.

In 2013, China's foreign direct investment rose by 2.3 percent year-on-year to $123.9 billion, ranking second in the world after the United States, according to the United Nations Conference on Trade and Development's World Investment Report on Tuesday.

"China remained the recipient of the second-largest flows in the world. Meanwhile, the quality of FDI inflows improved, with more into high-end manufacturing and services with high added value," said Zhan Xiaoning, director of the Investment and Enterprise Division at UNCTAD.

"What's more, China's outward investment is more striking," Zhan said.

In 2013, investment outflows from China increased by 15 percent year-on-year to $101 billion, the third highest in the world after the United States and Japan, the report said.

As China continues to deregulate outbound investment, outflows to developed and developing countries are expected to grow further, it said.

Zhan said, "China's economic landscape, driven by exports and foreign investment in the past three decades, will change significantly. Outward investment will serve as an important driver for industrial upgrading and economic growth."

Liang Guoyong, an economic affairs officer at UNCTAD, said, "It is very hard to predict when China will become a net investor, but the trend is inevitable."

The process will accelerate along with the nation's fast economic growth, the increase in Chinese companies' competitiveness and the amount of resources and market share they gain, Liang said.

The change will lead to a more effective allocation of financial resources for the Chinese economy, as the country holds the world's largest foreign exchange reserves, Liang added.

Huo Jianguo, president of the Chinese Academy of International Trade and Economic Cooperation, a Ministry of Commerce think tank, said China's new role as a net investor will help ease trade frictions.

"The rapid increase in overseas investment by Chinese enterprises is very likely to transform the trade landscape, because profits from the overseas market will lessen the country's reliance on exports, reducing trade frictions and pressure from swelling foreign exchange reserves," Huo said.

Contributed by By Li Jiabao and Mu Chen (China Daily)

Outflows from the Association of Southeast Asian Nations (Asean) rose five percent, with Singapore leading the pack at $27 billion, more than double in 2012. The Philippines' FDI outflows last year fell to $3.6 billion from $4.2 in 2012.



However, the Philippines is nowhere in the top 10 recipients of foreign inflows in Asia amid the slowdown in FDI in Asean compared with the rapid growth in the past 3 years -- from $47 billion in 2009 to $118 billion in 2012.

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It pays to be stern

I AM writing this in response to the article “Hats off to a strict father” written by Nithya Sidhhu (Here:  Hats off to a strict father ). The article really resonated with me.

All my three children, have always viewed me as a strict father.

Their complaints have never failed to make me feel that it was wrong for me to be such a strict father.

Like the writer, my eldest daughter also smarted under my regimen and in fact, complained to many of her friends that I was too harsh.

I felt that she did not understand the fact that I was actually intent on moulding her to become a person who would be ready to face life’s harsh realities one day.

Feeling misunderstood added to the guilt that grew in me.

That is why I felt immensely relieved when I read the article especially the words: “You may not appreciate it now but the discipline will help you in the future.”

Upon reading the article, I sent it to my eldest daughter who is currently studying in India.

Her reply really touched me because she said: “Appa (father) it was only after coming to college that I realised your strict ways were meant for my own good.”

Since it was Fathers Day, she sent me a picture with the quote: “The reason why a daughter loves her Dad the most is because there is at least one man in the world who will never hurt her. I love you, Dad”.

Both the article and my daughter’s message have succeeded in finally getting rid of the guilt within me.

Some fathers can’t help being strict but let me stress that they have their children’s best interests at heart.

The post is contributed by KARUNANITHY SUBBIAH Kuala Lumpur The StarEducate Sunday 22 June 2014.

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Malaysians killed: died for jihad, misled by the American messes in Iraq, troubles in North African countries..

Combating home-grown hate

The young must be given opportunities to have modern education so that they can be nurtured to distinguish for themselves the importance of moderate values over extremist ideas.

DURING an attack by the Islamic State of Iraq and Sham (Isis) on the Iraqi SWAT headquarters in al-Anbar on May 26, a young 26-year-old Malay man, Mohd Tarmimi Maliki, blew himself up like a true suicide bomber in order to kill as many Iraqi personnel as he possibly could.

Mohd Tarmimi succeeded. He killed 25 elite Iraqi soldiers and, according to reports, he was trained by militants right here in Malaysia – in Port Dickson. It is tragic to know that young Malaysians have to give meaning to their lives in this way.

And Mohd Tarmimi was not the first. A few years ago, a bomb maker from Kluang, Noordin Mohammad Top, became notorious for massive suicide attacks during the Jemaah Islamiah’s reign of terror in Java and Bali. His comrade and fellow bomb maker, Dr Azahari Husin, was also Malaysian.

This has not gone unnoticed. Only last week the Government announ­ced the capture of four militants in Sandakan, and statements from the police seem to suggest that militancy is on the rise in our country.

Deputy Home Minister Datuk Dr Wan Junaidi Tuanku Jaafar was quick to announce that Malaysia would never allow itself to be used by terrorists groups, adding that the Government was serious about making our nation a moderate Muslim country.

He specifically referred to the Global Movement of Moderates, established by Putrajaya, as an affirmation that the Government was serious about fighting extremism and militancy.

There are other measures that the Govern­ment should put in place to stop more young Malaysians joining the “jihad” brigade and senselessly killing themselves.

Stopping foreign militants from infiltrating our country is a sacred duty of our armed forces, but equally sacred is the duty of all of us to ensure that young Malaysians denounce violence, and I hope our leaders regard the existence of suicide bombers from amongst our young as a serious matter that requires urgent measures.

I have some views on how we can do this.

First, we must give our young opportunities to have modern education so that they can be nurtured to distinguish for themselves the importance of moderate values over extremist ideas. Secular education makes them think, unlike religious ones which make them obey. Modern education nurtures the young minds, and allows them to examine life’s many possibilities.

They must be taught not to condone violence and the killing of others, no matter how compelling the reasons for doing so might be.

We must teach young Malaysians to respect and safeguard human life and dignity, and always defend the rights of others as they expect others to do for them.

Unless our young boys and girls have the educational training to find peaceful ways to live in this modern world and are able to tell what is good for themselves and for society versus what is harmful, extremism and fanaticism will flourish.

For such a liberal education to take root in our schools, we must put a stop to indoctrination under the guise of religious teachings, and we must not continue to imbue our young with supremacist-nationalist ideas.

If we fail to do this, we will certainly produce more young men and women who are angry with the ways of the world. They will find it attractive to engage in violence and even to kill themselves for causes they have been misled to believe are worthy of the sacrifice.

Outside the schools, Malaysians must unite to reject extremism. It is no good to retaliate against extremist positions with our own extremism, meekly telling everyone that extremism begets extremism.

Religious preachers sometimes extol violent views in the name of religious commandments, and that’s how the seed of violence is sown. For a start, we must monitor the Friday sermons – no one, not even officers of the various Religious Departments – should be allowed to preach hate.

Our leaders, political or otherwise, must be mindful of their statements and conduct so as not to encourage our young to accept violence and hate speech. It is time that leaders tempered their political posturing, and they must distance themselves from excesses and extremist acts of all kinds.

At the same time, we need to mobilise the positive elements in society to do their part. There are enough people of goodwill who can teach young Malaysians about the benefits of inclusiveness and harmony.

The sense of wanting to belong and to be a part of a larger community will always win the day if only the people work hard to instil these values instead of the vile and vicious ideas that have become commonplace in our political discourse today.

Today, the whole world is grappling with the issue of how to manage violence and extremism, and it’s not hard to see that, in the Islamic world alone, the forces represented by the Sunni and the Syiah are engaging in sectarian and tribal wars of a huge magnitude.

Just look at what has happened in Pakistan, Iraq and Syria – if Malaysia is not careful and allows itself to be dragged into the same dispute, and if we delude ourselves into thinking that Islam is “under attack” and must therefore align ourselves to certain extremist groups, then many more like Mohd Tarmimi will join the brigade.

It will be a national disaster if our young have nothing to look forward to other than a short life to be terminated by their own suicide bombs. We must ring-fence them from this violence and, instead, help them to discover hope and a sense of worth in their lives. This is the duty of every Malaysian today.

- The article is contributed by All kinds of Everything by Datuk Zaid Ibrahim from The Star/Asia News Network.
Datuk Zaid Ibrahim is highly passionate about practically everything, hence the name of this column. Having established himself in the legal fraternity, Zaid ventured into politics and has been on both sides of the political divide. The former de facto Law Minister is now a legal consultant but will not hesitate to say his piece on any current issue. He can be reached at zaid.ibrahim@partners-corp.com. The views expressed here are entirely his own.

Does this constitute jihad?

BASED on police investigations, we learn that several Malay­sians have volunteered to become jihad fighters and suicide bombers in the civil war in Syria.

The Malaysian volunteers believe they have a religious duty to fight and die for the Sunnis, who are being suppressed by the Assad regime with the help of the Syiahs from within that country and from Iran.

These Malaysian suicide volunteers believe they are fighting to save the Sunni school, which to them is true Islam, against the Syiah teachings.

It’s time for our ulamas to come out publicly to advise these gullible volunteers that there is no reason for them to die in Syria.

This is because the internal war and violence against innocent Sunni civilians there have nothing to do with religion.

On the contrary, the unending conflicts in the region have more to do with Middle East power politics. It’s all about the rivalry for supremacy in the region between the Sunni Arab countries, led by Saudi Arabia, and their neighbour, Iran.

Iran, the biggest country in the Gulf region, and the country with the longest history of civilisation, has always felt since its imperial days under the Shah that it should be the natural superpower in the region.

The Arab states, who are ruled by Sunnis, on the other hand, are nervous about the growing Iranian influence in Iraq and Syria.

The Sunni’s cry for help against discrimination and victimisation by the Syiahs is receiving wide support from the Arab states.

The Arabs fear that if the Syiahs are successful in Iraq and Syria, Iran will become more powerful and, with its nuclear ambitions, could threaten the security of Saudi Arabia itself.

The Arab concern is not so much about Saudi Arabia losing its status as the religious leader of Sunni Muslims worldwide but more about losing its strategic influence in the region, especially in the oil industry.

The role that oil plays in world finance and politics gives the Saudis a powerful voice in the international community, which the United States is well aware of and which the West has fully exploited by protecting the Saudis from Iranian threats and in return, getting the Arab regimes to cooperate to maintain peace with Israel.

Malaysian Muslims should understand that the wars in Syria and Iraq are, in actual fact, proxy wars between the Arab states and Iran in their rivalry for regional superpower status.

To checkmate each other, the Arabs and Iran are prepared to make allies with the two world powers, ie, the US on one side and Russia on the other, who actually have the power to end the war in Syria today if they really want to.

Our ulamas should understand all these realities of world politics and not let our Muslim men be easily fooled by those who claim that it is jihad to die as suicide bombers for the suffering Syrian Sunnis.

Contributed by TAN SRI MOHD SHERIFF MOHD KASSIM, Kuala Lumpur The Star Opinion/View

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