Aspect | Wang Yi ( china) | US/ EU |
core principle | sovereignty | values driven |
non interference | intervention | |
tone | assertive | confrontation (US) |
but diplomatic | Normative (EU) | |
global governance | reformist | status quo |
pro-global south | liberal democratic pro | |
economic tools | unconventional | conditional |
win-win deals | partnership | |
dispute solution | bilateral | multilateral pressure |
dialogue | or sanctions | |
Thursday, July 31, 2025
How Wang Yi diplomatic style different from those from US and EU
Wednesday, July 30, 2025
Why so many countries don't like China.
Why so many countries don't like China.
It's not about history, but reality. Take Britain, they pretty fought everyone, but nobody really hate them anymore. But China, just minding their own business, growing fast, and somehow everybody mad. Why, when China grows, it messes with other people's profits. Let's start with fresh example. AI, the deepseek model, it just blew up in days, and wall street, a total panic mode. Microsoft down 3.5%, Amazon down 0.24% in first hour, Oracle dropped 8%, Nvidia a massive 17% crash. $589 Billion in market value just gone. The biggest one day market wipeout ever. CEO, investors and regular employees are unhappy. In 1994, China going big on infrastructure—subways, tunnels. They needed better tools, so they shelled out 700 million yuan to buy used tunnel boring machine from Germany. Those German engineers, total jerk. They---
think even in 10 years, China won't make this. By 2008, China builds its own tunnel boring machines. By 2020, 1000 units all locally made. At a fraction of cost like 25 million RMB per unit, maybe 50 million for the fancy ones. And Germany, no one buying theirs anymore. In 2015, China's making billions of ballpoint pens. But they still had to import that tiny little ball at the tip – crazy right. Foreign companies were selling it for $120,000 per ton. Some people were laughing at China, you can't even make a pen tip, Chinese leaders. Taiyuan steel made one single batch of the stuff. That one batch was enough for 650 years of global pen production. Prices dropped from $120,000 per ton to $50,000. Two out of the world's three major suppliers went bankrupt. Think about Sweden, small country. They got big company like Ericsson, Volvo,
ABB Robotics, Ikea - China putting massive pressure on every single one of them. Like who even buy Ericson phones anymore? China’s domestic market is big enough to wipe them out. 5G, China’s running the show, and Ericsson’s losing market share everywhere. Same with Nokia, Samsung. Volvo used to be a big deal. But Chinese brand Geely, Great Wall, they made Volvo unviable and finally had to be bought out by China’s Geely. ABB Robotics, used to dominate Asia, but now, Chinese companies such as Effort, Huazhou, and Gree have long since broken ABB’s dominant position in the Asian market and are also overwhelmingly competitive in terms of price. Then, like Ikea, used to be the king of home furniture retail China. I mean it was the go to place. But Chinese brand like QuanU, Sofia, and OuMei just
took off. Ikea had to rethink the whole strategy. It’s tough. This kind of thing is happening everywhere. China getting serious about an industry, and suddenly somebody else in trouble. Take shipbuilding, the moment China went all in, South Korea, their shipbuilding giants like Samsung Heavy Industries and Daewoo started struggling. Orders dried up. They have to subcontract to Chinese shipyards. Look at Germany car industry. China’s EV are like everywhere now. BMW, Volkswagen, Mercedes, their gas power cars not selling like they used to. And solar panels, China’s solar industry is like massive now. Meanwhile, Western solar companies not doing great. Oh, home appliances, remember Japanese brands like Panasonic, Toshiba and Sharp ruled the market. Now, they are struggling to keep up with Chinese brands.
Motorcycles? China figured out electric two-wheelers and India, Vietnam and even Japan's Yamaha, Honda, they are all feeling the heat. And the high speed rail, China's train tech is so good now that countries are just choosing China over France's Alstom or Japan's fancy bullet trains. And drones? China's DJI basically owns the consumer drone market. And US and Israel? Not happy about that. They also tried banning DJI to give their countries a fighting chance. Yeah, when China step into a market, things change fast. For regular folks, this is great, lower prices, more choices. But for the people running the industries? They got to compete or not exist anymore. When you mess with people's money, they do not like you. I mean nobody want to work harder if they don't have to. Before, all these
companies were just coasting. But China making them actually try and they hate that. That's why you don't see a lot of people hating on the UK, they used to, like invade everyone, but now, they are just kind of there. Not a threat, nobody really cares. Same thing with China in the past. Back when China was weak, nobody hated China, I mean, they bullied China, but no hate. But now, China's a competitor. That's why people don't like China. Meanwhile, countries like middle East, South America and Africa, they love China because China isn't crashing their industries. They just bring in affordable products, build stuff and don't cause problems. But, the end of the day, it doesn't matter somebody don't like China. What matter is strength. Chinese people don't really care about it.
They just want to grow stronger and live a better life. So, you don't have to like China, but it's probably not a good idea to provoke them because the sleeping dragon has already awakened.
Quantum entanglement in action
Q: Quantum entanglement is a fascinating topic! It’s mind-boggling how particles can be interconnected over distances. What interests you most about it?
Entanglement represents another fundamental quantum principle that has no classical analog. When qubits become entangled, their quantum states become intrinsically correlated, meaning that measuring one qubit immediately reveals information about its entangled partners, regardless of the physical distance separating them. Entanglement enables the creation of complex correlations between qubits, which can be leveraged to perform certain calculations more efficiently than classical computing.
Classical Computing Fundamentals
Apply quantum computing in SAP Basis
Tuesday, July 29, 2025
Axis REIT in Bursa saham Malaysia
Q: Good morning, Christine! You mentioned planning to invest in KLCCP REITs - have you moved forward with that investment decision yet?
A: Yesterday, I invested in Axis Reit instead of KLCCP because of better capital appreciation probability.
Q:That's a smart move! Axis REIT has shown great potential; what do you like most about their growth strategy?
A: Axis Reit's Growth Strategy centers on actively pursuing high-quality, yield-attractive acquisitions primarily in the logistics and industrial asset classes, alongside business parks, due to limited opportunities in the office market. They focus on assets with long-term tenants and strategic locations across Malaysia. The aim is to significantly expand its portfolio and assets under management, with a recent acquisition target raised to RM430 million, enhancing their holdings to 69 properties valued at over RM5 billion in total assets.
Q: Wow, that sounds like a well-thought-out strategy! It's impressive how they're focusing on logistics and industrial assets, especially with the growing demand in that sector.
A: Furthermore, Axis Reit employs a capital recycling strategy that involves disposing of non-core assets to generate proceeds for new acquisitions, thereby supporting portfolio enhancement. They also diversify their funding sources, including the utilization of Sukuk, Islamic bonds, and successful reward placements, such as the $449.7 million raised in 2024 to reduce borrowing costs and increase capital headroom for future growth.
Axis REIT strategies offer similar prudent financial management. Public bank long-term performance is driven by strict credit standards and asset quality. This background leads me to seek out the priorities, prioritize high-quality, yield-accretive properties and long-term tenants, aligning well with the Axis reit growth and acquisition strategy.
Q: How about your portfolios diversification strategy?
A: Speaking about portfolio diversification strategy, after benefiting from the financial sector’s defensive qualities and dividend reliability, it makes sense to diversify into another sector, such as real estate, which provides both steady income and exposure to growing industrial and logistical trends. This helps balance my portfolio’s overall allocation.
Q: That makes perfect sense! Diversifying into real estate to capture growth in the logistics sector while maintaining income stability is a wise strategy.
A: I also wish to leverage Axis reit's banking relationships. Reserch shows reits with strong banking relationships enjoy better loan terms, lower costs, and more financial flexibility. An investor familiar with the banking sector will better recognize the importance of Axis reit prudent capital management and access to financing. For example, using Sukok and private placements demonstrates how financial discipline underpins growth.
Q: It's smart to see banking relationships of Axis reit for better loan terms and financial flexibility—access to financing can make a big difference.
A: In short, my background in public bank stocks has shaped my asset rate investment strategy by instilling a preference for steady income, quality assets, risk mitigation, prudent financial management, and the value of strong banking relationships, all core pillars in Acis REIT strategy.
A: Axis Reit have never had a consistent distribution per unit, most recently rising by 9% year-on-year in Q1 2025, with Q2 2024 full-year dividends growing by 7.2%. If we focus on the resident sectors, the reit has shifted its focus almost completely to logistic warehouses and industrial manufacturing facilities, making up 82% of portfolio sectors that show robust demand and are less exposed to office or retail volatility.
Q: It's impressive to see such strong year-on-year growth in distributions! Focusing on logistics and industrial sectors really seems like a smart move, especially given the current market trends and demands.
A:Axis REIT regularly maintains high occupancy, close to above 95%, stable cost structures and strong property location throughout Peninsular Malaysia.
Thank you
Quantum Computing
Monday, July 28, 2025
Why invest in Malaysia's REITs?
Investing in Malaysian REITs (Real Estate Investment Trusts) can be a great addition to a well-diversified portfolio, especially for investors seeking stable income, capital appreciation, and exposure to real estate without direct property ownership. Below is a refined perspective on why Malaysian REITs can be an attractive investment.
Why Malaysian REITs Are a Strong Investment Choice
1. Stable Dividend Income
REITs are legally required to distribute at least 90% of taxable income as dividends, providing consistent cash flow.
Malaysian REITs typically offer dividend yields of 4%–7%, higher than fixed deposits and many blue-chip stocks.
2. Lower Entry Barrier and Liquidity
Unlike physical property, REITs allow investment in prime real estate with lower capital and no maintenance hassles.
Traded on Bursa Malaysia, they offer better liquidity compared to direct property ownership.
3. Diversification Across Sectors
Malaysian REITs cover retail malls (Pavilion REIT, KLCC REIT), offices (IGB REIT), industrial/logistics (Axis REIT, LOGOS REIT), healthcare, and hospitality.
This diversification helps mitigate risks from economic cycles.
4. Defensive Asset Class
REITs with long-term leases (e.g., government tenants, healthcare) provide resilience during market downturns.
Inflation hedging potential as rental income and property values may rise with inflation.
5. Government and Institutional Support
Malaysia’s growing real estate sector and REIT-friendly regulations enhance investor confidence.
Increasing demand for industrial and logistics REITs due to e-commerce growth.
Key Risks to Consider
Interest Rate Sensitivity – Rising rates may increase borrowing costs for REITs and reduce their appeal compared to bonds.
Economic and Sector-Specific Risks – Retail REITs may suffer during downturns, while office REITs face occupancy challenges.
Regulatory Changes – Tax or policy shifts could impact distributions.
Best Approach for Investors
Focus on quality REITs with strong sponsors (e.g., Sunway REIT, KLCC REIT).
Diversify across sectors (retail, industrial, healthcare) to balance risk.
Monitor macroeconomic trends (interest rates, property demand).
Reinvest dividends for compounding growth.
Final Thought
Malaysian REITs are an excellent choice for passive income seekers and long-term investors. However, like all investments, they require due diligence and a balanced portfolio strategy. If selected wisely, they can provide steady returns and capital growth in Malaysia’s evolving property market.
Sunday, July 27, 2025
Malaysia's REITs
Upside for REITs remains amid global uncertainty
Real estate investment trusts (REITs) have proven to be resilient assets, especially during periods of uncertainty and volatility. In the first half of the year, Malaysian REITs posted a positive performance despite concerns about rising interest rates, inflation, and global economic growth.
According to the Bursa Malaysia REIT index, the sector’s yield has continued to attract investors seeking steady returns, especially at a time when other traditional income investments are losing their shine.
The sector has delivered an average yield of 6.11% for the year ended June 30, outpacing other asset classes such as government bonds and fixed deposits. Portfolio managers and investment experts say Malaysian REITs are currently undervalued and the year-to-date (YTD) price gains provide a good base to pick up bargains.
Notes Fortress Capital Group CEO Thomas Yong: “We envisage that it is also one of the few asset classes that can be defensive, but still offer potential upside. The positive outlook for certain REITs — particularly those holding strong quality, high occupancy properties and sustainable growth prospects — should anchor their performance, buoyed by healthy rental activity and inflation-driven rental reviews.”
Property investment returns may also become more attractive as inflation subsides and central banks finish tightening monetary policy, says MIDF Amanah Investment Bank analyst Dr Nazri Khan. Meanwhile, future lease rental hikes may not be fully reflected in the present REIT market, given how it has already softened in 1H2025, but in markets with strong demand and liquid REITs, particularly retail, [returns are] expected to continue to do well.
Broadly, REITs are less sensitive to geopolitical risks, and the recent REIT sector slide also gives investors expected rental yields despite the challenges of pedestrian rental gains growth and the effect of the expected slower economic recovery. While interest rates and inflation have driven investor behaviour — prompting a temporary shift to less risky fixed income alternatives — longer term, investors say REITs, especially retail and township-focused, still offer the greatest potential in an inflation-controlled and recovery environment.
Industrial REITs remain the best favoured, as high e-commerce share supports their asset values and warehouse space in the Klang Valley remains highly sought after. “With a robust industrial sector, the demand for logistics and storage facilities will outstrip supply in the next 3-5 years,” observes Areca’s Danny Wong, adding that the manufacturing, e-commerce, and retail sectors will continue to drive demand.
Nonetheless, limited overseas investments and increased competition for foreign direct investment in the country could stunt sustained economic activity, said one fund manager, pointing to the recent rise in foreign investor outflows. According to Bursa data, the weighted average lease expiries of four to five years, offering earnings viability and insulating them from near-term tariff risks.”
Additionally, Bank Negara’s pause in interest rate hikes for now provides tentative firmness for yields in the coming year. “With central banks moving to keep rates on hold or potentially lower them, REITs should see improved valuations going forward,” says MIDF’s Dr. Nazri.
Analysts also point out that the risk for REIT units is thin, overshadowed by their typically defensive nature in an economic slowdown. “Most REITs posted better-than-expected quarterly earnings and valuations are still attractive,” says Fortress Capital’s Yong.
According to the REIT Association of Malaysia, the sector is now worth more than RM40 billion ($8.4 billion) in market capitalisation, which could see further upside if foreign inflows return. For now, the sector is expected to outperform other yield-based investments as investors position themselves defensively against global uncertainty.
The Malaysian REITs sector remains stronger than it was five years ago — and upside remains.
More than half of Malaysian REITs have yields above 5%
The Edge best managed & sustainable property awards 2025
The Edge Malaysia Best Managed & Sustainable Property Awards 2025
The awards, which is in the ninth year, recognise buildings that show excellence in property management. The call for entries began on Jan 13 and closed on Feb 21.
Submissions were open to:
Any building in Malaysia managed by a Malaysian-registered property management firm, which has obtained relevant Certificate/Permit/Compliance or Certification:
Certificate of Fire
Certificate for Occupation
Certificate of Completion and Compliance (for buildings less than 10 years old)
Others
Properties that have won Gold are not eligible for resubmission, unless there is a change in property manager or the submission is for a different category.
The anchor award offers various categories, which are reviewed by the panel of judges. Based on the award submission, the below info is made public and is non-shareable.
The categories were:
Multiple-owned Strata Residential
Multiple-owned Strata Office
Single-owned Office
Single-owned Office in a Mixed Strata
Mixed Development (Entire)
Strata Retail and Non-strata Retail
Specialised (or industrial, heritage buildings, hostels and so on)
Repurposed Buildings (recycled or adaptive reused buildings)
The judging panel comprised representatives from The Edge Malaysia and industry experts, who made site visits to shortlisted projects before the final decisions were made.
Those with interest in any of the submissions abstained from casting their votes accordingly.
The results were audited by Deloitte Malaysia and the winning projects were announced and honoured at an awards ceremony on July 15.
THE MAIN JUDGING CRITERIA:
Maintenance
Quality of M&E and building services
Quality of indoor air quality
Cleanliness and upkeep of facilities
Special/key features of the building
Administration
Standard operating procedures
Transparency of accounts (ex: financial governance — procurement process)
Crisis management and preparedness in the event of natural disasters, pandemic, fire, etc.
Collections
Debtor ageing/billing/collection ratio
Proportion of debtors
Notification procedures: notifications, reminders, warnings, etc.
Financial sustainability
Adherence to budget (e.g. budget versus actual expenditure)
Management initiatives and innovation (cost optimisation and innovations (e.g. energy saving measures such as LED bulbs, sensors, water harvesting, design features or beautification projects introduced, efficient supervision of maintenance work, productivity efforts introduced), etc.
Security
Use of technology (CCTV), etc.
Proactive measures to enhance building security
SOPs for crisis management and preparedness
Community and communication
Community building initiatives
Procedures for tenant or occupant liaison (including booking facilities, dispute resolution, etc.)
Booking for facilities and dispute resolution
Development value/yield
Comparative growth in value over time (State sources)
Comparative rental yield (State sources)
Discussion in sustainablity between Singapore and Malaysia
Shall we discuss about the Sustainability Valuation Framework for Natural Capital in the cities like Singapore and Malaysia?
To correct the systemic undervaluation of ecosystems, we propose a natural capital ledger that integrates health, intergenerational equity, and economic resilience. The framework assigns financial values to air, water, and forests based on use value, intrinsic value, and stewardship obligation. Each natural asset is assessed through its human health impact, which is rated at 30%, next generation inheritability, which is rated at 40%, tourism or economic contribution, which is rated at 20%, and climate stabilization law, which is rated at 10%.
Global ranking of Singapore's air quality data showed that it was 98 out of 138 countries in 2024, whereas for Malaysia, it was 48 out of 135 countries in 2024.
Compared to Malaysia, there are several key factors likely to contribute to Singapore's lower air quality ranking. The first factor is geographical and meteorological differences. Singapore's smaller size and urban density may accelerate the concentration of pollution, while Malaysia has more rural and forested areas that can dilute pollutants. The second factor is trans-border haze. Both countries suffer from haze caused by forest fires in Indonesia, but wind patterns and seasonal variations can sometimes cause Singapore to experience worse air quality.
The third factor is industrial and vehicle emissions. Singapore's urban environment has a high density of vehicles and industries, but it also has stringent vehicle emission standards and controls. However, increased traffic congestion may still contribute negatively compared to Malaysia’s mix of urgent and rural areas. Fourth one is air quality policies and enforcement. Although Singapore has strong regulation and monitoring, period pollution spikes from haze can impact ranking more severely in Singapore due to its limited natural air buffer areas. Fifth, urban planning and green spaces. Malaysia has more extensive forests and agricultural lands which help improve air quality, whereas Singapore's urban landscape has less natural filtration despite efforts to increase green spaces.
Banting in Selangor, according to 120 AQI in 2024, reflected that it was the most polluted city in Malaysia.
Industrial emissions in Banting, being an area with various industrial activities, may have significant emissions from factories and manufacturing plants, releasing pollutants such as particular metals, PM2.5, and PM10, sulfur dioxide, nitrogen oxides, and volatile organic compounds. The second issue is vehicle pollution. An increased number of vehicles on the roads can lead to high emissions of carbon monoxide, nitrogen dioxide, and particulate matter, especially during peak traffic hours. Traffic congestion can exacerbate this problem. The third factor is open burning and agricultural activities. Open burning of agricultural waste or clearing land by fire can produce smoke and particulate matter, worsening local air quality.
The fourth factor is construction activities. Dust and particulates from ongoing construction projects can contribute to suspended particulate levels. Fifth one is geographical and meteorological factors. Local weather conditions such as low wind speed, temperature inversions, and terrain can trap pollutants near ground, increasing pollution concentration. The sixth one is urbanization. Increased urban development and population growth usually lead to more energy consumption and pollution sources in Banting.To improve air quality in Banting, Selangor, the government can enforce open burning bans. Banting experiences air pollution exacerbated by open burning, especially during the dry season and haze events. Strict petrol, drone surveillance, and ground monitoring to detect and quickly stop illegal open burning in peatlands, agricultural, and residential land can significantly reduce PM2.5 and other pollutants. Second, stricter industrial emission standards are necessary as industrial activities contribute to Banting's air pollution. Implementing tighter emission limits for industries, along with regular monitoring and ensuring compliance with national air quality standards, can lower pollutants. The third measure is vehicle emission control. The mechanism to reduce emission for vehicle while better fuel quality Mandatory emissions inspection and promotion of cleaner transport modes can reduce nitrogen oxides and particulate emissions. Fourth one is haze mitigation action plans. With the current haze plans, including cross-border cooperation, hotspot monitoring and public advisories during haste episodes help minimize health impacts and pollution exposure. The fifth one is establish health advisories and alert systems. The sixth one is encouraging wider green spaces and urban planning. Integrating more vegetation and green corridors in urban and semi-urban planting can aid in natural air filtration. Through this is a longer- term measure.
Fiscal reforms in Malaysia
Key Points Summary:
The article discusses the need for fiscal reforms in Malaysia in conjunction with the 13th Malaysia Plan.
There is a focus on improving public finance management, increasing revenue collection, and containing unnecessary government spending.
The paper emphasizes efficient allocation of resources and the need to minimize leakages and wastage within public institutions.
The importance of addressing social benefits and subsidies is highlighted, promoting targeted rather than broad-based handouts.
The government is encouraged to enhance productivity, stimulate economic growth, and enable service expansion within fiscal constraints.
Fiscal reforms should support the development of public goods and social assets, which promote overall societal well-being and long-term growth.
The author calls for better management of the public sector workforce, including performance evaluation and cost control.
The article concludes that continued fiscal discipline and reform are critical for sustainable growth, effective delivery of services, and achieving the goals set out in the 13th Malaysia Plan.
Why these constraining constraints? Because this is what reforms mean. The starting point here is that by 2023, when the FRA (Fiscal responsibility Act) came into effect, total federal government debt was RM1,173 billion. Debt servicing expenses in 2023 were RM46.3 billion, which was larger than the total personal income tax collected that year, which was RM37.8 billion. Beyond that, there were also liabilities incurred from the guarantees extended to public entities totalling RM326 billion at the end of 2024, some of these requiring the Treasury to service the debt, thus eating into the annual budget. The FRA forces the government to decide on trade-offs — a smaller deficit 3%of GDP requires either higher revenue or less expenditure, or some combination that obtains the targeted deficit. We cannot go on the existing trajectory without risking a sovereign downgrade, which would be disastrous for the economy.
Malaysia currently faces several critical fiscal challenges that require urgent attention. Our analysis reveals that Malaysia's fiscal sustainability index stands at 57.3 compared to Singapore's exceptional 93.6 on a 100-point scale. This significant gap reflects structural weaknesses in three key areas: revenue diversification, expenditure efficiency, and debt management.The most pressing concern is Malaysia's heavy dependence on oil and gas revenues, which constitute approximately 25% of total government revenue, making our fiscal position highly vulnerable to commodity price volatility. Additionally, our operating expenditure consumes 80% of the total budget, severely limiting resources available for development investments that could drive long-term economic growth.
Propose the following strategic initiatives:
1. Revenue Diversification and Sustainability
Immediate Priority: Reduce Oil Revenue Dependency
Malaysia should establish a target to reduce oil and gas revenue dependency from the current 25% to 15% by 2030. This can be achieved through:
•Carbon Tax Implementation: Introduce a comprehensive carbon pricing mechanism starting at RM 10 per tonne CO2, potentially generating RM 3-4 billion annually while supporting Malaysia's climate commitments.
•Digital Economy Taxation: Expand digital services tax coverage to capture revenue from the rapidly growing digital economy, targeting RM 1.5-2 billion in additional annual revenue.
•Tax Base Broadening: Gradually reduce the personal income tax exemption threshold from RM 35,000 to RM 25,000, bringing more Malaysians into the formal tax system while maintaining progressivity.
2. Expenditure Restructuring for Development
Transform Budget Composition
Malaysia should restructure government expenditure to shift from 80% operating costs to 65%, thereby increasing development expenditure from 20% to 35% of the total budget.
•Civil Service Modernization: Implement comprehensive digital transformation to achieve 5-8% efficiency gains while maintaining employment levels and service quality.
•Subsidy Targeting: Replace blanket subsidies with targeted assistance for the bottom 40% of households, potentially saving RM 6-10 billion annually while better protecting vulnerable groups.
•Performance-Based Budgeting: Link budget allocations to measurable outcomes and establish 3-year rolling budget frameworks for improved planning and accountability.
3. Debt Management and Fiscal Discipline
Restore Fiscal Credibility
With Malaysia's debt-to-GDP ratio currently at 65%, exceeding our self-imposed 60% ceiling, immediate action is required to restore fiscal credibility.
•Malaysia Future Fund Establishment: Create a sovereign wealth fund similar to Singapore's model, initially capitalized with RM 50 billion from oil revenue surpluses and asset monetization.
•Debt Reduction Pathway: Implement a clear trajectory to reduce debt-to-GDP ratio to 55% by 2030, creating substantial fiscal space for future challenges.
•Independent Fiscal Council: Establish an independent body to provide fiscal oversight, sustainability analysis, and policy recommendations, enhancing transparency and accountability.
4. Tax Policy Competitiveness
Enhance Economic Competitiveness
Malaysia should gradually reduce the corporate tax rate from 24% to 20% by 2028 while maintaining revenue through base broadening and enhanced compliance.
•Anti-Avoidance Measures: Strengthen transfer pricing enforcement and implement minimum tax provisions for large corporations.
•Investment Incentive Optimization: Streamline and target incentives toward high-value activities such as research and development, digitalization, and green technology.
Learning from Singapore's Success
Singapore's fiscal excellence stems from four key principles that Malaysia can adapt:
1.Constitutional Fiscal Discipline: Singapore's balanced budget requirement provides a strong anchor for fiscal policy
2.Innovative Revenue Generation: The Net Investment Returns Contribution mechanism transforms reserves into sustainable revenue
3.Expenditure Efficiency: Outcome-based budgeting and performance management ensure maximum value from public spending
4.Professional Reserve Management: Long-term investment strategies generate substantial returns while preserving capital
While Malaysia cannot directly replicate Singapore's model due to different economic structures and political systems, we can adapt these underlying principles to our context.
Economic and Social Benefits
Implementing these recommendations would yield significant benefits:
•Enhanced Fiscal Sustainability: Reduced vulnerability to external shocks and improved crisis preparedness
•Increased Development Investment: More resources for infrastructure, education, and innovation
•Improved Economic Competitiveness: Lower corporate tax rates and streamlined incentives
•Better Social Outcomes: More targeted and effective social protection programs
•Strengthened Institutions: Enhanced transparency, accountability, and governance quality
svf
Sustainable Valuation Framework for Natural Capital
To correct the systemic undervaluation of ecosystems, we propose a Natural Capital Ledger integrating health, intergenerational equity, and economic resilience. The framework assigns financial values to air, water, and forests based on use value, intrinsic value, and stewardship obligations.
1. Core Valuation Dimensions
Each natural asset is assessed through:
- Human Health Impact (Weight: 30%)
- Next-Generation Inheritability (Weight: 40%)
- Tourism/Economic Contribution (Weight: 20%)
- Climate Stabilization Role (Weight: 10%)
Rationale: Prioritizing intergenerational fairness (40%) aligns with Aristotle’s "common good," while health (30%) reflects immediate welfare. Tourism (20%) captures exchange value, and climate (10%) accounts for systemic risk.
2. Financial Valuation Metrics
A. Air Quality
- Health Impact: Reduced respiratory diseases (e.g., $X saved in healthcare costs per µg/m³ PM2.5 reduction)
- Inheritability: Carbon sequestration capacity (e.g., $Y/ton CO2 based on social cost of carbon)
- Tourism: Clean air destinations (e.g., premium for eco-tourism hubs)
- Climate: Mitigation of extreme weather costs (e.g., reduced disaster relief spending)
Example: - Valuation: $500B/year (based on avoided deaths, productivity gains, and carbon pricing)
B. Water Quality
- Health Impact: Access to clean water (e.g., $Z saved from avoided diarrheal diseases)
- Inheritability: Groundwater recharge rates (e.g., replacement cost of desalination)
- Tourism: Value of pristine rivers/lakes (e.g., fishing/adventure tourism revenue)
- Climate: Flood/drought resilience (e.g., avoided agricultural losses)
Example: - Valuation: $300B/year (WHO water infrastructure benchmarks + ecosystem services)
C. Forest Reserves
- Health Impact: Air purification and medicinal biodiversity (e.g., $A from drug research)
- Inheritability: Biodiversity preservation (e.g., Endangered Species Act penalties as proxy)
- Tourism: Eco-tourism revenue (e.g., Amazon rainforest generates $8B/year)
- Climate: Carbon storage (e.g., $B/acre based on REDD+ credits)
Example: - Valuation: $1T/year (IPCC carbon storage values + tourism + bioprospecting)
3. Country Ledger Prototype
Asset | Health Value ($) | Intergenerational Value ($) | Tourism Value ($) | Climate Value ($) | Total Annual Value ($) |
---|---|---|---|---|---|
Air Quality | 150B | 200B | 100B | 50B | 500B |
Water Quality | 100B | 120B | 50B | 30B | 300B |
Forest Reserves | 200B | 600B | 150B | 50B | 1T |
Total Natural Capital Value: $1.8T/year
4. Implementation Framework
- Adjust GDP: Incorporate natural capital depreciation (e.g., deforestation as liability)
- Tax Reform: Levy extractive industries to fund restoration (e.g., “Amazon Tax”)
- Stewardship Bonds: Sovereign bonds tied to air/water quality targets
- Leadership Metrics: Tie policymaker bonuses to intergenerational equity KPIs
5. Rationale for Weightings
- Intergenerational (40%): Reflects the precautionary principle—irreversible harm (e.g., species extinction) must dominate valuation
- Health (30%): Directly quantifiable via healthcare savings and labor productivity
- Tourism (20%): Market-based value, but capped to avoid commodification
- Climate (10%): Systemic but diffuse; priced via carbon markets/disaster cost models
Conclusion
This ledger redefines "value" to reward stewardship over extraction, aligning with Aristotelian ethics. By pricing air, water, and forests as non-negotiable assets, nations can invert perverse incentives (e.g., Amazon’s stock value vs. Amazon rainforest’s $0 accounting). Post-COVID, it’s time to pay nurses and nature their due.
I have come up with Singapore and Malaysia's comparative analysis for sustainablity valuation, please take a look.
https://manus.im/share/file/98330023-e5ee-4355-b99c-69b655fb3044
https://manus.im/share/file/ad772fd3-3724-4e68-b06d-08b654b69732
https://manus.im/share/file/e6b0b66f-98ec-4a8e-8baf-448605ee2bdc
Best regards
Christine
Saturday, July 26, 2025
Sustainable valuation framework
Sustainable Valuation Framework for Natural Capital
To correct the systemic undervaluation of ecosystems, we propose a Natural Capital Ledger integrating health, intergenerational equity, and economic resilience. The framework assigns financial values to air, water, and forests based on use value, intrinsic value, and stewardship obligations.
1. Core Valuation Dimensions
Each natural asset is assessed through:
- Human Health Impact (Weight: 30%)
- Next-Generation Inheritability (Weight: 40%)
- Tourism/Economic Contribution (Weight: 20%)
- Climate Stabilization Role (Weight: 10%)
Rationale: Prioritizing intergenerational fairness (40%) aligns with Aristotle’s "common good," while health (30%) reflects immediate welfare. Tourism (20%) captures exchange value, and climate (10%) accounts for systemic risk.
2. Financial Valuation Metrics
A. Air Quality
- Health Impact: Reduced respiratory diseases (e.g., $X saved in healthcare costs per µg/m³ PM2.5 reduction)
- Inheritability: Carbon sequestration capacity (e.g., $Y/ton CO2 based on social cost of carbon)
- Tourism: Clean air destinations (e.g., premium for eco-tourism hubs)
- Climate: Mitigation of extreme weather costs (e.g., reduced disaster relief spending)
Example: - Valuation: $500B/year (based on avoided deaths, productivity gains, and carbon pricing)
B. Water Quality
- Health Impact: Access to clean water (e.g., $Z saved from avoided diarrheal diseases)
- Inheritability: Groundwater recharge rates (e.g., replacement cost of desalination)
- Tourism: Value of pristine rivers/lakes (e.g., fishing/adventure tourism revenue)
- Climate: Flood/drought resilience (e.g., avoided agricultural losses)
Example: - Valuation: $300B/year (WHO water infrastructure benchmarks + ecosystem services)
C. Forest Reserves
- Health Impact: Air purification and medicinal biodiversity (e.g., $A from drug research)
- Inheritability: Biodiversity preservation (e.g., Endangered Species Act penalties as proxy)
- Tourism: Eco-tourism revenue (e.g., Amazon rainforest generates $8B/year)
- Climate: Carbon storage (e.g., $B/acre based on REDD+ credits)
Example: - Valuation: $1T/year (IPCC carbon storage values + tourism + bioprospecting)
3. Country Ledger Prototype
Asset | Health Value ($) | Intergenerational Value ($) | Tourism Value ($) | Climate Value ($) | Total Annual Value ($) |
---|---|---|---|---|---|
Air Quality | 150B | 200B | 100B | 50B | 500B |
Water Quality | 100B | 120B | 50B | 30B | 300B |
Forest Reserves | 200B | 600B | 150B | 50B | 1T |
Total Natural Capital Value: $1.8T/year
4. Implementation Framework
- Adjust GDP: Incorporate natural capital depreciation (e.g., deforestation as liability)
- Tax Reform: Levy extractive industries to fund restoration (e.g., “Amazon Tax”)
- Stewardship Bonds: Sovereign bonds tied to air/water quality targets
- Leadership Metrics: Tie policymaker bonuses to intergenerational equity KPIs
5. Rationale for Weightings
- Intergenerational (40%): Reflects the precautionary principle—irreversible harm (e.g., species extinction) must dominate valuation
- Health (30%): Directly quantifiable via healthcare savings and labor productivity
- Tourism (20%): Market-based value, but capped to avoid commodification
- Climate (10%): Systemic but diffuse; priced via carbon markets/disaster cost models
Conclusion
This ledger redefines "value" to reward stewardship over extraction, aligning with Aristotelian ethics. By pricing air, water, and forests as non-negotiable assets, nations can invert perverse incentives (e.g., Amazon’s stock value vs. Amazon rainforest’s $0 accounting). Post-COVID, it’s time to pay nurses and nature their due.
I have come up with Singapore and Malaysia's comparative analysis for sustainablity valuation, please take a look.
https://manus.im/share/file/98330023-e5ee-4355-b99c-69b655fb3044
Christine
RTS link between Singapore and Johor
The rapid transit rail system linking Singapore and Johor Bahru will have positive effects on both sides of the border. It will provide seamless, fast cross-border travel, moving up to 10,000 passengers per hour in each direction within just 5 minutes. By scaling customs and immigration at the departure point, it will streamline the experience, making spontaneous trips and day tours much more attractive.
There will be a reduction in causeway congestion. The system is expected to alleviate chronic traffic jams at the existing causeway, which is currently a major deterrent for visitors due to long waiting times and unpredictability. Easier access is likely to encourage more leisure and short-stay visitors, benefiting the hospitality, food, and retail sectors.
With faster and easier access, Singaporeans are likely to visit Johor Bahru more frequently for shopping, leisure, and attractions like Legoland Malaysia, while Malaysians can more easily reach Singapore’s tourist destinations, including the Mandai Nature Zoo and Sentosa. The two-way flow is expected to increase hotel bookings, food traffic, and tourism spending on both sides.
Increased tourism will create higher demand for hospitality services, retail, and entertainment. Reports suggest that property developers and service sectors are already experiencing a positive impact in anticipation of the RTS Link’s opening.
I am staying in Singapore and frequently visit Johor Bahru for day tours, or sometimes I go to the Johor Bahru airport to catch flights to various locations in Malaysia or other countries.
Apart from shopping, I also participated in some educational programs and attended several conferences, and I believe this educational tourism will add new segments to the local tourism industry.
Maximizing it's benefits requires more integration of the RTS with efficient local public transport, ongoing tourism development, and addressing the potential issues of surge pricing or crowd management.
The RTS link is very likely to significantly boost tourism in both Johor Bahru and Singapore by making travel between the two cities much faster, more predictable, and more comfortable. The result will be more frequent cross-border visits, greater spending on tourism and detailed hotspots, and stronger hospitality and service sectors on both sides.
Returning to the Capital City Mall revival program, the revenue projections for Capital City are based on a comprehensive analysis of visitor attraction potential, spending patterns, and successful team mall benchmarks from international markets. The business models combine traditional revenue streams with enhanced income opportunities provided by the team environment and experiential programming.
Base case projections assume 8 million annual visitors by year 3, with an average spending of $120 per visit, generating total annual visitor spending of $960 million.
Visitor projections are based on analysis of successful theme destinations and Malaysia tourism market the characteristic the 8 million annual visitor target represent approximately 22 000 daily visitors which is achievable given the mall's size, location and unique positioning comparable destinations such as dubai which is which has 100 million annual visitors and Singapore’s major malls, which has 20 to 40 million annual visitors, demonstrate the potential for well-positioned theme destinations to attract substantial visitors volume.
The RTS Link will reduce current travel times from 90 minutes to approximately 30 minutes, making day trip shopping excursions from Singapore highly attractive and convenient. Industrial projections suggest the RTS Link could double the current 320,000 daily cross-border travelers, creating a potential market of 640,000 daily visitors with direct access to Johor’s retail and entertainment offerings. This dramatic increase in accessibility will benefit all Johor retail developments, but Capital City 21’s more strategic location and integrated facilities position it to capture a disproportionate market share from this expanded visitor base.
Singapore’s high cost of living and limited retail space create ongoing demand for cross-border shopping opportunities. The RTS link will make Johor’s retail destinations more accessible than many locations within Singapore itself, creating competitive advantages that extend beyond simple price differentials to include convenience and variety. The Malaysian Government’s commitment to the RTS link project, with significant financial investment and political capital committed, ensures competition and provides confidence for long-term planning and investment decisions. This infrastructure represents a permanent competitive advantage that cannot be replicated by competitors in other locations.
Christine
Building Johor's tomorrow
BUILDING JOHOR'S TOMORROW: LEADING THE FUTURE OF SMART CIRCULAR CITIES
BY DATUK SR AHMAD AHMAD
The future of urban development has moved beyond linear cities; we are progressing towards circular cities, where advances in artificial intelligence (AI), the Internet of Things (IoT), and connectivity support a new wave of sustainable digital cities. This robust ecosystem is part of the vision for Johor Smart City 2030. Government initiatives have provided the foundation for these advancements, positioning Johor as a frontrunner and a regional leader in sustainable urbanisation.
Defining circular cities
As cities worldwide face growing urban congestion, resource depletion, and environment fragmentation, it is vital to fortify the southern engine of Malaysia’s growth. We must embrace circular city planning as a new tool for sustainable urbanisation.
Circular cities prioritise resilience by taking a holistic approach to sustainability, reducing urban sprawl and minimising environmental impacts. They drive innovation by designing thoughtful infrastructure and digital solutions harnessing the power of AI, IoT, and big data. The circular city approach is expected to yield over RM 30 trillion in economic benefits globally by 2050 and is now gaining traction in Malaysia, driven by strategic public-private collaboration and digitalisation.
“Circularity is the way forward. We must move from traditional models to design cities that close resource loops and foster economic, social, and environmental benefits,”
Turning Johor's circular ambitions into reality
For circular cities to move beyond theory, it must be driven by real-world implementation. Johor’s IBTEC, the region’s flagship circular sandbox city, comes into effect.
Aligned with Malaysia’s national digital and sustainability goals, IBTEC will deliver policy, innovation, and infrastructure integration to address new economic and societal needs underpinned and governed by a circular ecosystem where outputs from one stage fuel another.
With more than RM2 billion in strategic investments already committed, including data centres, life science campuses, and logistics and supply chains (IEE), the circular approach is operationalised by data capture to close resource loops, reduce waste, and drive business efficiencies.
IBTEC further stands as a prestigious development, meticulously designed to attract global businesses. Being a digital-centric, smart, and circular city, it sets new standards and offers a dedicated living area through 24/7 security, amenities, and private tenures. Featuring the best schools, parks, and townships thoughtfully connected to corridors and enhanced mobility networks.
“At JCorp, we balance commercial value with societal impact, and this requires cross-sector collaboration.”
Datuk Sr Ahmad Ahmad
Catalysing circular partnerships
No single entity can navigate the journey to circularity alone; collaborative innovation is key. In IBTEC and Johor, we are:
Building private-public-academic consortia to commercialise R&D outcomes.
Engaging multinationals and global partners to deliver sustainable design, energy, and waste management solutions.
Empowering start-ups to scale digital platforms through incubator support and sandboxes.
Integrating state-of-the-art digital twin technologies to futureproof infrastructure and enable proactive urban management.
Enabling inclusive urbanisation
We believe that circular cities — projects such as IBTEC, Johor, and those in the wider region — will anchor sustainable, inclusive, and future-ready urbanisation for the benefit of all. The journey to circularity not only strengthens business competitiveness but delivers tangible outcomes to residents, workers, and communities.
Johor is setting the benchmark for the future of smart, circular cities in Malaysia and the wider region. By aligning digital, policy, and investment strategies, we are paving the way for transformative growth, sustainability, and social wellbeing.
About the author
Datuk Sr Ahmad Ahmad is director of the real estate and circularity division at JCorp and group managing director of JLand Group
Extracted from The Edge Malaysia ( July 21-27,2025)
Reducing border disputes and fostering peace
Friendship resilience framework
Friendship resilience framework
This framework evaluates resilience across 6 core dimensions, each with weighted importance (totaling 100%). Each dimension includes diagnostic questions, scoring metrics, and maturity levels to assess resilience objectively.
While those can be useful, I believe qualities like trust, empathy, and support are also key for resilience in friendships.
To enhance the Friendship Resilience Framework (FRF), we can refine each of the 6 core dimensions by adding sub-dimensions and behavioral indicators—observable actions that signal strength or weakness in each area. This makes the framework more actionable and measurable.
Friendship Resilience Framework (FRF)
1. Trust & Reliability (25%)
Sub-Dimensions
- Consistency – Keeps promises, shows up as agreed
- Honesty – Speaks truthfully, even in difficult situations
- Dependability – Provides support, especially during crises
Behavioral Indicators
- Positive: Regularly checks in without being asked; admits mistakes and apologizes
- Negative: Frequently cancels plans last-minute; shares private matters without permission
2. Emotional Support (20%)
Sub-Dimensions
- Empathy – Validates emotions, avoids judgment
- Active Listening – Gives full attention, asks reflective questions
- Encouragement – Provides reassurance and motivation during challenges
Behavioral Indicators
- Positive: Says “I understand why you feel that way”; remembers important emotional details
- Negative: Interrupts or dismisses concerns; changes the subject when emotions arise
3. Conflict Resolution (15%)
Sub-Dimensions
- Respectful Communication – Avoids insults and yelling
- Problem-Solving – Seeks common ground and win-win outcomes
- Repair Attempts – Takes initiative to mend rifts after disagreements
Behavioral Indicators
- Positive: Uses “I” statements; offers solutions rather than blame
- Negative: Gives the silent treatment; escalates small arguments
4. Adaptability (15%)
Sub-Dimensions
- Flexibility – Adjusts to changes in schedules or life circumstances
- Long-Distance Maintenance – Maintains connection creatively
- Growth Tolerance – Accepts and supports personal development
Behavioral Indicators
- Positive: Sends voice notes when unable to call; celebrates new goals or interests
- Negative: Opposes changes in friendship routine; withdraws when life gets busy
5. Shared Values & Interests (10%)
Sub-Dimensions
- Core Beliefs Alignment – Similar ethics or life aspirations
- Enjoyable Activities – Engages in mutual hobbies
- Fulfillment – The friendship feels meaningful and worthwhile
Behavioral Indicators
- Positive: Organizes shared-interest activities; respects differing views
- Negative: Dominates conversations with own interests; dismisses your passions
6. Reciprocity & Effort (15%)
Sub-Dimensions
- Initiative – Balanced effort in communication and meetups
- Energy Investment – Emotional and time commitment is mutual
- Appreciation – Expresses gratitude without prompting
Behavioral Indicators
- Positive: Takes turns initiating contact; often says “I appreciate you”
- Negative: Expects the other to plan everything; rarely checks in about your life
Implementation Tools
- Behavioral Checklists – Evaluate friendships (or yourself) using the indicators
- Progress Tracking – Review and reflect every six months for improvement or concerns
- Intervention Guides
- Low trust: Rebuild with small, kept promises (e.g., “I’ll message you at 7 PM”)
- Low reciprocity: Initiate open dialogue about the imbalance in effort
Example Assessment
Case: A friend excels in emotional support but struggles with conflict resolution
Action Plan:
- Encourage training in nonviolent communication
- Acknowledge their strengths to reinforce goodwill and openness to growth