China: Rejection of the Philippines' arbitration 'in line with law'
Foreign Minister Wang Yi says China's rejection of arbitration filed by the Philippines over terroritorial claims, is in line with the law. His remarks came after talks with his Australian counterpart Julie Bishop in Beijing on Wednesday, as Australia called for a resolution to the South China Sea disputes through peaceful means, including arbitration.
"China is actually following international law by not accepting arbitration regarding sovereign and maritime entitlements. Because after joining the United Nations Convention on the Law of the Sea in 2006, China issued a declaration according to the rights given to China by Article 298 of the UNCLOS. We issued a government statement excluding China from being subjected to the compulsory settlement measures. The Chinese government will continue to stand by the declaration." said Wang Yi.
China in 2006 declared it would not accept arbitration of disputes concerning territorial sovereignty and maritime rights, in accordance with the UN Convention on the Law of the Sea (UNCLOS), Wang said.
"Chinese government will certainly stick to this position," Wang said, adding that more than 30 countries, including Australia, have also made similar "exclusive" declarations.
He gave a list of reasons why the Philippines' arbitration attempt is invalid and unacceptable, including unilateral moves without consulting China, which goes against international norms, as well as the common sense argument that arbitration applications are usually lodged only when all other means are depleted.
China and the Philippines have several agreements that disputes should be solved through dialogue and consultation.
The Philippines has also signed the fourth article of the Declaration on the Conduct of Parties in the South China Sea (DOC), which states that disputes should be solved by those countries directly related, through negotiation and consultation.
Wang said that the Philippines' arbitration attempt violated previous agreements and raised suspicion of its complicated international background or even hidden political motives.
The minister listed reasons why the Philippines' arbitration attempt, first made in 2014 to a UN tribunal, is invalid and unacceptable. He said it was a unilateral move by the Philippines, which goes against international norms on arbitration, and that they have not yet exhausted other means to reach a resolution. Wang Yi also said any deployment of defense facilities on China's own territory would be legitimate.
Wang further said the Philippines not only violated a number of
agreements by filing arbitration without China's consent ... but also
did not follow the Declaration on the Code of Conduct on the South China
Sea. According to him, any arbitration should only be filed after all
possible solutions are tried and failed.
"The Philippines betrayed our trust and went against justice to file
for arbitration. That made us wonder whether they are making these
decisions following complicated international circumstances. They may
even have political purposes that they don't want to share," he said.
This was in response to western reports that an advanced surface-to-air missile system was deployed to one of the disputed islands in the South China Sea.
"I hope that media everywhere will turn their attention to the lighthouses that we have built on some of the islands in the South China Sea. They are in operation now and they have been very useful in ensuring the safety of passing ships in those waters. The meteorological forecast facilities and other facilities will provide assistance and rescue and emergency response to the fishing boats in those waters. Because I think all of those are actions China, as the biggest state in the South China Sea, has undertaken to provide more public goods and services to the international community and play a positive role there. " said Wang, " As for the limited and necessary self-defence facilities that China has built on the islands and reefs stationed by Chinese personnel, this is consistent with the self-preservation and self-protection that China is entitled to under international law. So there should be no question about that."
The Chinese Foreign Minister also stressed that demilitarization benefits all, but it can not be applied to only one country, or with double or even multiple standards. He said demilitarization in the South China Sea needs joint efforts from countries both in and outside the region. The Chinese Foreign Minister said China noticed that during the just concluded meetings between the US and ASEAN, the two pledged to achieve demilitarization in the region. He said China hopes they can keep their word. Xinhua
Oct 28, 2015 ... By sending its warship within 12 nautical miles of China's isles in the SouthChina Sea, the United States is raising tensions in the waters and ...
Oct 29, 2015 ... If such provocations continue, China's warships will have to engage in more face-
offs with their US counterparts in the South China Sea. Beijing ...
Nov 18, 2015 ... The suspense is to what extent the US will foist the South China Sea disputes
into this .... US making trouble & provocation out of nothing; Ch..
It is the US that is militarizing the South China Sea
The U.S. has recently been hyping the idea that China is militarizing the South China Sea. It first criticized China for deploying missiles in Yongxing Island, then claimed in a report that China is building a radar system on islands or reefs in the Nansha Islands.
However, plenty of evidence suggests that it is the U.S. rather than China who is actually militarizing the South China Sea.
First, the U.S. is clearly “a thief calling on others to catch a thief” when accusing China of escalating militarization in the South China Sea.
It is the U.S. that has been enhancing military deployment in neighboring regions of the South China Sea.
The U.S. not only acquired access to eight military bases in the Philippines, the superpower has also continued increasing its military presence in Singapore and sent warships and aircraft to the South China Sea.
What’s more, it has repeatedly pressured its allies and partners to conduct targeted military drills and patrols to play up regional tension.
Besides selling weaponry to the Philippines, Vietnam and other Southeast Asian countries, the U.S. also repeatedly sent missile destroyers, strategic bombers and anti-submarine patrol aircraft to approach or even enter relevant reefs and islands, as well as the adjacent waters and air space of China’s Nansha and Xisha Islands. Such acts betray ambition to provoke China.
Secondly, the U.S. obviously has a guilty conscience when criticizing China for deploying national defense.
As islands and reefs in the South China Sea have been an indisputable part of China's territory since ancient times, China is entitled to safeguard its legitimate rights and interests.
By deploying necessary defense for its own territory, China is exercising the right of self-preservation granted by international law to sovereign states. This has nothing to do with militarization and is completely legitimate.
China’s defense is not fundamentally different from the defense installation by the U.S. in Hawaii. If other countries have zero intention to threaten China’s sovereignty and security, they needn’t worry about defensive measures.
Thirdly, the U.S. revealed its double standard when criticizing China’s construction on the Nansha Islands.
Such construction falls completely within China’s sovereignty. The light houses built by China on its stationed islands and reefs, as well as the facilities for meteorological observation, emergency shelter and rescue, are public services and goods offered by China to the international community as the largest coastal state in the South China Sea.
They are by no means military facilities, but the U.S. has continued picking on China nonetheless.
In contrast, the U.S. turns a blind eye to military actions taken by the Philippines and Vietnam on the Nansha Islands, which they illegally occupy.
Lastly, so-called “safeguarding navigation freedom” is just a cover-up for the U.S. to destroy peace and stability in the South China Sea.
The U.S. military has been carrying out “navigation freedom” activities for a long time. Such activities, in essence, are challenges to other countries’ sovereignty and jurisdiction in their own waters and exclusive economic zones. The U.S. carries out these activities just to maintain its own maritime supremacy.
The freedom of navigation and flight over the South China Sea, to which all countries are entitled under international law, has never been threatened. Over 100,000 vessels from various countries pass through the region every year without a hitch.
However, the “navigation freedom” actions conducted by the U.S. destroy peace and tranquility in the South China Sea and escalate regional tensions.
Not only won’t this selfish and overbearing act help to peacefully resolve the South China Sea issue, it will further disrupt regional peace and stability.
The U.S. must realize that as a party not concerned in the South China Sea issue, it should respect the efforts of China and concerned nations to peacefully handle their own disputes and safeguard the stability of the region.
If the U.S. intends to make sincere contributions, the best way is to stop stirring up tensions through risky military actions in the South China Sea.
- By Zhang Junshe - The author is a research fellow of China's Naval Research Institute
China said on Friday that it does not intend to pursue militarization of the Nansha Islands in the South China Sea and criticized U.S. air and naval patrols in the region.
China has indisputable sovereignty over the Nansha Islands and their adjacent waters, said Foreign Ministry spokesman Hong Lei, adding "China is serious about its commitment not to pursue militarization of the Nansha Islands."
Hong made the remarks after U.S. State Department spokesman John Kirby said commercial satellite imagery suggested "very recent" placement of missiles on Yongxing Island that goes against China's pledge not to militarize the South China Sea.
"We see no indication that ... this militarization effort, has stopped. And it's doing nothing ... to make the situation there more stable and more secure," Kirby said at a regular news briefing on Thursday.
Hong said that demilitarization in the region is not a matter for just a single country. "There should not be double standards or multi-standards for demilitarization in the South China Sea, and the process requires joint efforts from countries in the region and beyond."
He said the United States is strengthening military deployment in the South China Sea and frequently sends military vessels or planes to waters in the South China Sea to conduct close-in reconnaissance against China.
He also accused the United States of sending missile destroyer and strategic bombers into waters and airspace adjacent to the Nansha Islands and had its allies hold targeted joint military exercises or joint cruises in the region.
The U.S. actions have escalated tensions in the South China Sea and constitute the militarization of the South China Sea, said Hong.
Yongxing Island, the largest island in the Xisha Islands group in the South China Sea, is an inherent part of China's territory, he said.
In 1959, the Chinese government set up an administrative office and the ensuing government facilities on the Yongxing Island.
The deployment of defense facilities on Yongxing Island amounts to China exercising its sovereignty and it has been going on for decades, he said, urging the U.S. side to learn the basic facts regarding the South China Sea before commenting on the issue.
HQ-9 missile prompted by US threat
US Secretary of State John Kerry said on Wednesday that "There is every evidence, every day that there has been an increase of militarization of one kind or another," referring to the reported Chinese deployment of missiles in the "disputed" islands in the South China Sea. He said "it's of serious concern" and the US will "have further very serious conversation" with China. The US media has responded strongly to the allegations that China has deployed HQ-9 surface-to-air missiles on Yongxing Island, one of the islands in the Xisha chain. US Senate Armed Forces Chairman John McCain suggested the US consider "additional options to raise the costs on Beijing's behavior."
The HQ-9 missile is a typical type of defensive weapon. The Xisha Islands are Chinese territory and have long been under China's actual control. Previous disputes in the South China Sea did not involve this area, but this time the US has targeted Yongxing Island in Xisha to attack China's "militarization" of the South China Sea. Washington intends to not only tarnish China's image, but also expand the disputes so as to contain China's activities in the Nansha Islands.
The confrontation between China and the US in the South China Sea is likely to escalate. The whole of Chinese society should be cool-minded and be prepared for long-term competition with the US.
First, we should be clear about the country's stance toward the South China Sea. We are safeguarding our legitimate rights without any radical moves. Island building in Nansha and missile deployment in Xisha are in accordance with international law.
Second, China cares about developing ties with all regional countries. The missiles in Yongxing do not target any South China Sea claimants.
Third, China should send clear messages to the outside world that its defensive deployment in Yongxing targets external military threats. The freedom of navigation in the South China Sea only applies to civilian vessels and aerial vehicles. Outside warships and jet fighters must obey the principle of "innocent passage." American warships and flights have constantly made provocations in the South China Sea. The US is bold about imposing pressure on China, and China must make an appropriate response.
Fourth, how the PLA deploys weapons and the defense levels should be determined by the threat level from external military forces. If the US military stages a real threat and a military clash is looming, the PLA may feel propelled to deploy more powerful weapons.
Fifth, China does not want to see an escalation of Sino-US frictions in the South China Sea, but it should let the US know that its every single provocative act will face countermeasures from China.
Sixth, the main risks come from the uncertainty of intensity of China-US competition. It is unrealistic for relevant countries to woo the US to balance China.
Last, China should adopt an active approach to cope with an opinion war and express its stance to the world. China holds firm strategic initiatives in the South China Sea, and the US has no actual effective tools to contain China in the waters. It is best at rhetoric offense, so we must reason with it head-on. - Global Times
Washington's destabilizing role in South China Sea
South China Sea. (Photo/Xinhua)
After failing to get its way at the first U.S.-ASEAN summit in California, Washington appears ready to grasp at anything that could be used against China.
And the media hype over China's deployment of a surface-to-air missile system in Yongxing Island, part of the Xisha Islands in the South China Sea, just provided Washington a much-needed excuse to once again criticize Beijing for its alleged role in "militarizing" the region.
For starters, China has indisputable sovereignty over the Xisha Islands and deploying limited and necessary national defense facilities on China's own territory has nothing to do with militarization in the South China Sea.
China has repeatedly made it clear that it has no intention to militarize the region. Its activities are mainly for maintenance purposes, improving the living conditions for the stationed personnel there and providing more public goods in the region.
With trillions of dollars' worth of goods traversing the patch of water every year, the South China Sea is vital both to global trade and to China's development. Beijing has no reason to disrupt one of its own crucial arteries of trade.
Meanwhile, the United States, which has become fixated on the South China Sea since Washington announced a pivot to the Asia-Pacific, has been the primary source of destabilization in the area.
It has conducted a slew of naval and air patrol trips in the vicinity of the China-owned islands, which is in clear violation of China's sovereignty, not to mention international law.
In addition, it has also reopened military bases in the Philippines, in a move widely interpreted as stirring up tension in the region.
Furthermore, some countries in the region are taking more provocative measures to press for illegitimate territorially claims ever since the U.S. put the South China Sea on its radar.
If there were a ranking for destabilizers in the South China Sea, there's no doubt Washington would top the list.
China's practices in the region are defensive in nature, and it sees direct talks between rival claimants rather than military means as the best way to resolve any dispute.
For the sake of regional stability and the common good, let's hope the United States honor its previous commitment of not taking sides on the issue or stirring up tensions. Only then can the South China Sea be home to calm waters. Xinhua
Military factors injected by US provocation in the South China Sea
In an exclusive report, Fox News claimed that it obtained civilian satellite imagery which appears to show China's HQ-9 air defense system on Yongxing Island, part of the Xisha Islands in the South China Sea. Fox News used this as evidence that China is increasingly "militarizing" its islands and "ramping up tensions in the region." Many Western media picked up the news.
They probably aren't clear about the differences between the constructed islands in Nansha Islands and Yongxing Island in Xisha. The disputes over the sovereignty of islands in Nansha are sharp, while the Xisha Islands are under the actual control of China.
China has released the baseline of the territorial sea to the Xisha Islands and their sovereignty is not disputed. Meanwhile, Yongxing is the largest of the Xisha Islands and the location of the city of Sansha. Defensive weapons were deployed on the island in the past. Even if the presence of the HQ-9 system is true as the West has claimed, it is a matter of China's sovereignty and it is fully legitimate for China to do so.
US authorities and opinion have paid particular attention to the "militarization" of the South China Sea, which shows the absurdity of US-style hegemonic mentality. The US, an outsider, has injected the most military elements in the region. It will reopen military bases in the Philippines. It also advocates its allies, Japan and Australia, to join its military navigation in the South China Sea. The biggest act of militarization is that it sent warships within 12 nautical miles of islands claimed by China.
Facing more frequent provocations from the US military, China should strengthen self-defense in the islands in the South China Sea. The deployment of defense systems is not in the domain of militarization, as militarization of islands often means they are built into a fortress to become an outpost of military contests.
Guam is a typical example of US militarization. In recent years, Guam has deployed offensive nuclear submarines and various missile systems which are aimed at deterring China, making it the new pillar of US military deterrence in the Pacific.
At least currently, China finds it does not need to militarize the islands to cope with the other South China Sea claimants. As long as Washington does not inject tensions, China has no motivation to do so. Uncertainties in the future come from the US side.
Once the US repeatedly sends warships to make provocations at Chinese islands and threatens the security of Chinese people and facilities on the islands, more military equipment should be deployed to counter US provocations. This is common in contemporary international relations.
Once the South China Sea is militarized, it will only add to China's strategic costs. Therefore, China will hardly resort to the last choice. But China is not the decisive factor, as it is propelled to react due to provocations from the US and its allies.
China is serious about ensuring stability and prosperity around the South China Sea and has invested enormous energy and resources. The region is adjacent to the route of China's "One Belt, One Road" initiative and China's efforts are eliminating vulnerability caused by a lack of security trust.
Even if the HQ-9s are deployed on South China Sea islands, regional countries would not raise much concern as these claimants have no intention to fight for air supremacy. Jet fighters from the US, an outside country, may feel uneasy when making provocative flights in the region. To us, that's a proper result. - Global Times
Related:
Chinese Ambassador gives exclusive insight into China-US relations
On issues concerning national sovereignty, the Chinese military will follow the will of its people.
Commentary: U.S. has hard time justifying criticism of China's actions in South China Sea
WASHINGTON, Feb. 18 (Xinhua) -- The U.S. government is recently
struggling China Sea, because it is clear that it is the United States,
not China, that is the real source of militarization of the region.
China's deployment of a surface-to-air missile system on the Xisha
Islands, an inherent part of China's territory, is defensive in nature
and falls within its sovereign rights and international law.Full Story
China Voice: Provocation no good for peace in South China Sea
BEIJING, Jan. 31 (Xinhua) -- Sending a warship to another country's
territorial waters without notice is hardly the right thing to do,
regardless protocols and codes.
The Saturday maneuvers of a U.S. Navy guided-missile destroyer 12
nautical miles off Zhongjian Dao, Xisha Islands, was "deliberate
provocation", according to China's Defense Ministry spokesman Yang
Yujun.
It also drew angry outcry from Chinese on the Internet, with many
comments much more radical than the official response. The Chinese
people have every reason to feel offended. Full Story
Oct 28, 2015 ... By sending its warship within 12 nautical miles of China's isles in the SouthChina Sea, the United States is raising tensions in the waters and ...
Oct 29, 2015 ... If such provocations continue, China's warships will have to engage in more face-
offs with their US counterparts in the South China Sea. Beijing ...
Nov 18, 2015 ... The suspense is to what extent the US will foist the South China Sea disputes
into this .... US making trouble & provocation out of nothing; Ch..
Gravitational wave detection proposal in the works
Chinese scientists are proposing a space gravitational wave detection project that could either be a part of the European Space Agency’s eLISA project or a parallel project.
The announcement of the discovery of gravitational waves in the United States on Thursday by the Laser Interferometer Gravitational-Wave Observatory has encouraged scientists around the world, with China set to accelerate research. Gravitational waves are tiny ripples in the fabric of space-time caused by violent astronomical events.
Scientists from the pre-research group at the Chinese Academy of Sciences disclosed that the group will finish drafting a plan for a space gravitational wave detection project by the end of this year and will submit it to China’s sci-tech authorities for review.
The Taiji project will include two alternative plans. One is to take a 20 percent share of the European Space Agency’s eLISA project; the other is to launch China’s own satellites by 2033 to authenticate the ESA project.
“Gravitational waves provide us with a new tool to understand the universe, so China has to actively participate in the research,” said Hu Wenrui, a prominent physicist in China and a member of the Chinese Academy of Sciences.
“If we launch our own satellites, we will have a chance to be a world leader in gravitational wave research in the future. If we just participate in the eLISA project, it will also greatly boost China’s research capacity in space science and technology.
“In either case, it depends on the decision-makers’ resolution and the country’s investment,” he said.
The draft will provide different scenarios with budgets ranging from 160 million yuan ($24.3 million) to more than 10 billion yuan.
“Although I am not sure which plan the decision-makers will finally choose, I think the minimum budget of 160 million yuan should not be a problem for China,” Hu said.
The Laser Interferometer Space Antenna’s gravitational wave observatory was the EAS’ cooperative mission with NASA to detect and observe gravitational waves. The project, proposed in 1993, involved three satellites that were arranged in a triangular formation and sent laser beams between each other.
Since NASA withdrew from the project in 2011 because of a budget shortfall, the LISA project evolved into a condensed version known as eLISA.
On Dec 2, the European Space Agency launched the space probe LISA Pathfinder to validate technologies that could be used in the construction of a full-scale eLISA observatory, which is scheduled for launch in 2035.
“Currently, all the operating gravitational wave detection experiments worldwide are ground observatories, which can only detect high-frequency gravitational wave signals,” said Wu Yueliang, deputy president of the University of the Chinese Academy of Sciences.
“A space observatory, without any ground interference or limitation to the length of its detection arms, can spot gravitational waves at lower frequency.”
On February 11, scientists from the Laser Interferometer Gravitational-Wave Observatory in the US confirmed they had detected gravitational waves caused by two black holes merging about 1.3 billion years ago. This was the first time this elusive phenomenon was directly detected since it was predicted by Albert Einstein 100 years ago.
LIGO, currently the most advanced ground facility for gravitational research, includes two gravitational wave detectors in isolated rural areas of the US states of Washington and Louisiana.
“Metaphorically speaking, if the research into gravitational waves is a symphony, the discovery of the LIGO experiment makes a good prelude by proving that the hypothetical wave does exist. But I believe the other movements will mostly be composed of new discoveries from space observatory devices, because the low and middle band — which can only be detected from space — is the most extensive source of gravitational wave,” said Hu, the CAS physicist.
Meanwhile, the Taiji project of the Chinese Academy of Sciences has competitors in China. Sun Yat-sen University in Guangzhou, Guangdong province, proposed the Tianqin project in July. That project will receive a 300 million yuan startup fund from the local government to initiate a four-step plan to send three satellites in search of gravitational waves and other cosmic mysteries.
Li Miao, director of the Institute of Astronomy and Space Science, said it was still too early to tell the specific direction of the future of the university’s Tianqin project.
“The major gravitational wave research program in China is the cooperation with eLISA, which is led by professor Hu Wenrui,” Li was quoted by Guangdong’s Nanfang Daily as saying.
“The reason that eLISA made progress rather slowly was that the member states in Europe held different opinions as to whether gravitational waves exist. Now this has been proved to be true, which will greatly accelerate the pace of research in and out of China,” Li said.
Save the trees: Mohamed Idris hugging a tree as other CAP members and protesters stage a peaceful demonstration in Jalan Masjid Negeri.
GEORGE TOWN: A Penang Island City councillor has joined hands with the Consumers Association of Penang (CAP) and other non-governmental organisations in protesting the council’s decision to transplant 18 trees for its road widening project along Jalan Masjid Negeri here.
Councillor Dr Lim Mah Hui said the island’s road widening projects to ease traffic jams were a futile effort as they were not for the long term.
“We have enough evidence to show that road widening is not a permanent solution for heavy traffic.
“Instead, it will only increase the number of vehicles on the road,” he said when met during a peaceful demonstration by CAP in Jalan Masjid Negeri yesterday.
Dr Mah said besides transplanting trees, the council and state government should think of other ways such as carpooling to ease traffic.
“The public has to deal with heavy traffic during peak hours and public holidays.”
Earlier, CAP members held a demonstration to show their objection to the 1.8km road widening project along Jalan Masjid Negeri.
Its president S.M. Mohamed Idris hugged a tree to show his disapproval.
“People and trees are being relocated and environment is being destroyed in the name of development.
“I am extremely upset that consideration is given to vehicles at the expense of trees,” he told the reporters.
Mohamed Idris said this was unacceptable and he described the decision as pure madness.
“The fast pace development in the state is destroying Penang’s natural charm.
“With the greenery being replaced by concrete, Penang will soon become an unliveable place,” he said.
He added that the people should come together to oppose this action as there was a dire need to preserve the island’s tree-lined roads.
It was reported on Feb 6 that 18 trees would be affected along the Jalan Scotland-bound stretch, starting from Lorong Batu Lanchang-Jalan Masjid Negeri junction to the Jalan Air Itam-Jalan Masjid Negeri junction in its 1.8km road widening project along Jalan Masjid Negeri.
There are 33 trees lining the left side of the road where the current two-lane roadway will be increased to three lanes to cope with the heavy traffic flow, but the council managed to reduce the amount of trees affected to 18.
The project is scheduled for completion in May next year.
- Logeiswary Thevadassa and Reena Hod The Star/Asia News Network
Dec 13, 2015 ... Dr Kam was delivering a talk titled, 'What is happening to our hills' at the Save The Hills of Penang public forum at Dewan Sri Pinang here ...
Dec 11, 2015 ... The spate of hill clearings has prompted the Penang Forum, a coalition of public interest NGOs, to hold a forum on Save the Hills of Penang ...
Dec 3, 2015 ... PENANG'S drainage system is unable to cope with heavy rain falling within a short ..... Penang Forum concerns over hill clearing and flood.
AS the Fire Monkey swings in to take its place, many have predicted this year as a challenging one. So, what’s in store for everyone in this particular year?
Many came to me for advice on how to deal with this challenging period. Frankly speaking, I am not a feng shui master or an astrologist who can somehow predict the future. Neither do I know how to read a crystal ball and tell you what lies ahead. Having been through a few round of recessions and bad times during my early days, I can, however, only share my own experiences and observations.
As shared in my last article “Lessons from my father”, I have learnt how to live frugally since young from my late parents. I recalled starting up my own architectural firm at the worst possible time. The year was 1964, and it was during the time of the Malaysia-Indonesia confrontation. The country was experiencing an economic recession and it is not hard to imagine how tough it was to make a living. I basically lived on “char kuey teow” as my lunch for two years! Being frugal and practising delayed gratification somehow helped me sail through that rough period.
While it is wise to spend prudently, it is even wiser not to be in debt during times of uncertainty. I read an article which highlighted that Malaysian household debt as of August 2015 was 88.1% of gross domestic product against only 60.4% in 2008. The figure was among the highest in the region. It is rather alarming considering most young people tend to be indebted with at least a car and a huge outstanding of credit card and personal loan repayment.
It is important not to put ourselves in a vulnerable financial situation, in order to face the challenges ahead. Most items purchased with the use of personal loan, credit card and hire-purchase are likely to depreciate over time. As a result, if repayments are not made on time or at all, these items with depreciated value becomes a loss. Such loans are then dubbed as “bad debt”. A “good debt” is one that brings returns. It is time to re-look into our debt categories and reallocate our resources appropriately.
Conserving funds, while important, is not enough to withstand the inflation impact. It is therefore crucial to invest to fight inflation especially monetary inflation (money printing) which is a real problem in today’s world economy and is currently also causing asset inflation to continue. It is difficult to know the best form of investment during uncertain environment. However, I believe each of us has areas of expertise, and we should focus on those areas.
If you are planning to own a property, a good inflation-hedging tool, do creative searching for your dream home.
Muhamad Azree Abdul Rahim, a 26-year-old Malaysian, solved his problem of owning a property by thinking-out-of-the-box. He turned a used shipping container into his home by taking a RM75,000 loan and buying a plot of 2,400 sq ft land some 25km from Shah Alam. He was able to build a decent, fully-functional home with a garden next to it. His unconventional way of building his own house without being manacled to a 30-year housing loan is something that we should learn.
While everyone would love to stay near to the city centre and preferably, own a big comfortable home, we need to be realistic in order not to be financially overstretched. Start with a smaller home, and buy a home that you can afford, not what you like. It is absolutely fine if you chose a house next to the last MRT station, far away from KL city centre, as long as you find it easy to commute. No point being near the city yet having to endure the daily routine of traffic madness and at the same time, forking out a large sum beyond your means.
In the 1986 recession (the worst recession that I could remember), I had a team of 20 sales team members. Instead of waiting for customers to drop by our office, we went door-to-door and street-to-street to look for customers. Imagine swimming against the current, you may feel very tired and exhausted, but at least you are few steps nearer to your destination and you become a much stronger person. Hence, building resilience and perseverance in weathering the storm during challenging times is just as important.
Back to the year of the Fire Monkey, I realised that there are similar characteristics that we can learn from those who are born in the year of the Monkey. According to Chinese zodiac analysis, monkey is the mnemonic symbol associated with intelligence, creativity, perseverance and flexibility. Perhaps, take the cue from the monkey and brave through this challenging year by applying some of its traits.
Land & Property Food for Thought Alan Tong
Datuk Alan Tong has over 50 years of experience in property development. He was the World President of FIABCI International for 2005/2006 and awarded the Property Man of the Year 2010 at FIABCI Malaysia Property Award. He is also the group chairman of Bukit Kiara Properties. For feedback, please email feedback@fiabci-asiapacific.com.
