Thursday, July 31, 2025

How Wang Yi diplomatic style different from those from US and EU


1. Emphasis on Sovereignty and Non-Interference
Wang Yi (China):
Wang Yi consistently emphasizes respect for national sovereignty and non-interference in internal affairs. For example, in response to EU sanctions over Xinjiang, he criticized them as "based on lies" and lacking legal or factual basis, asserting that such actions violate international norms. China's diplomacy rejects "the law of the jungle" and advocates for equality among nations, regardless of size.
Key Quote: "China will remain committed to peace, development, cooperation, and mutual benefit... and stand against hegemonism."

US/EU:
The US and EU often adopt a values-driven approach, linking diplomacy to human rights, democracy, and rule of law. They frequently use sanctions or conditional aid to pressure other nations (e.g., sanctions on China over Xinjiang). This approach is more interventionist, aiming to shape domestic policies of other states.


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2. Tone: Assertive vs. Confrontational
Wang Yi (China):
His tone is assertive but calibrated, combining firmness with diplomatic finesse. For instance, while condemning EU sanctions, he framed China's response as a defense of international law rather than mere retaliation. He also emphasizes dialogue, as seen in his efforts to mediate in Iran nuclear talks.

US/EU:
The US tends toward direct confrontation, especially under administrations like Trump’s (e.g., trade wars, blunt rhetoric about China as a "threat"). The EU, while softer, still employs public condemnations (e.g., joint sanctions with the US).


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3. Approach to Global Governance
Wang Yi (China):
China promotes multilateralism but with a focus on reforming institutions like the UN to reflect "developing country" interests. Wang Yi highlights China's role in UN peacekeeping (e.g., sending troops to Mali) and climate diplomacy, framing it as a "responsible major country."

US/EU:
The US often acts unilaterally or through alliances (e.g., NATO), while the EU prioritizes rules-based multilateralism. Both advocate for liberal democratic norms, sometimes clashing with China’s vision of "non-Western" multilateralism.


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4. Economic Diplomacy: Win-Win vs. Conditional Cooperation
Wang Yi (China):
He stresses "win-win" economic partnerships, such as linking China’s urbanization with Europe’s recovery. China’s Belt and Road Initiative (BRI) exemplifies this, offering infrastructure loans without political strings attached (criticized by the West as "debt-trap diplomacy").

US/EU:
The US and EU tie economic cooperation to political conditions (e.g., labor standards, anti-corruption measures). The EU’s Global Gateway initiative explicitly counters BRI by emphasizing transparency.


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5. Handling Disputes: Dialogue vs. Coercion
Wang Yi (China):
Prefers bilateral negotiations and "quiet diplomacy." For territorial disputes, he advocates "peaceful resolution through talks," contrasting with Western public pressure tactics.

US/EU:
Often use public shaming, sanctions, or military alliances (e.g., US freedom of navigation operations in the South China Sea).


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Key Differences Summarized

AspectWang Yi ( china)US/ EU
core principle sovereignty values driven
non interference intervention
toneassertiveconfrontation (US)
but diplomatic Normative (EU)
global governancereformiststatus quo
pro-global southliberal democratic pro
economic toolsunconventional conditional
win-win dealspartnership
dispute solution bilateral multilateral pressure
dialogueor sanctions

Conclusion
Wang Yi’s style reflects China’s broader strategy of "peaceful rise," combining assertiveness with a rejection of Western hegemony. Unlike the US’s adversarial posture or the EU’s normative pressure, his diplomacy prioritizes sovereignty, economic pragmatism, and incremental influence. However, his approach has drawn criticism for overlooking human rights concerns, as seen in clashes with the EU. For further details, refer to his speeches and analyses of US-China tensions.

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?

A: Imagine we have a pair of magical coins that are forever connected, no matter how far apart they are. When you flip one coin and it lands heads, the other coin, even if it is on the other side of the universe, instantly knows to land tails. This is essentially what quantum entanglement is like, except instead of coins, we are dealing with tiny particles like photons or electrons.

Quantum entanglement is one of the strangest phenomena in physics. When two particles become entangled, they form a single quantum system where measuring one particle instantly affects the other, regardless of the distance between them. Einstein famously called this “spooky action at a distance” because it seemed to violate our everyday understanding of how the world works.

Q: That's a brilliant analogy! It really helps to visualize the concept of quantum entanglement. Do you have a favorite application or implication of this phenomenon in the real world?
 
A: Entanglement is a fundamental resource for quantum computers. It allows qubits to be correlated in ways that classical bits cannot, enabling certain calculations to be performed exponentially faster than on classical computers. In my experience, I encountered quantum sensing during my lecture on the taxation framework, where the lecturer asked a random questions and I instantly turned to the correct page with the correct answer in front of me.

Q: That's a fascinating application of quantum principles! It sounds like your experience in class was almost like having a superpower. Have you been following any recent developments in quantum computing?

A: Quantum computing represents a paradigm shift that harnesses the counterintuitive principles of quantum mechanics to process information in fundamentally different ways. Unlike classical bits, quantum computers utilize qubits, which can exist in multiple states simultaneously.

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.

Q: You're absolutely right; the unique properties of qubits and entanglement really open up new frontiers for computing! It's exciting to think about how this technology could revolutionize various fields.

A: The quantum interference serves as the computational engine of quantum computing. In quantum systems, probability amplitudes associated with different computational paths can interfere with each other, either constructively amplifying desired outcomes or destructively cancelling unwanted results. Quantum algorithms are designed to orchestrate this interference pattern such that incorrect answers cancel out while correct answers are amplified, increasing the probability of measuring the desired solutions.

Q: That's a fantastic explanation of quantum interference! It's amazing how these principles can enhance computational efficiency. Have you ever tried working with quantum algorithms or programming languages designed for quantum computing?

A: Quantum algorithms, such as sohr algorithms for factoring and Grover's algorithms for searching, leverage quantum interference and superposition to solve certain problems more efficiently than classical algorithms. In terms of programming languages, there are specialized quantum programming languages and frameworks, such as Qiskit( IBM Open Source Quantum Computing), Cirq (Google Quantum Programming), Quipper (Quantum Programming Language Embedded in Haskell), Q# (Microsoft Quantum Programming), Forest, (RIGEDTI, Quantum Cloud Platform, and SDK). These tools help researchers and developers design, simulate, and run quantum algorithms on quantum hardware or simulators.

Q: You've covered so much ground in quantum algorithms and programming languages! It's impressive how rapidly the field is evolving. Have you had any hands-on experience with any of those quantum programming languages?

A:I plan to learn, but could you recommend which one is the best among them?

Q: Choosing the best quantum programming language really depends on your goals and the specific projects you're interested in.

A: I think that for home-based learners interested in quantum programming, QISKIT, developed by IBM, is widely regarded as the best starting point. It's beginner-friendly. QISKIT is Python-based, making it accessible if we already have experience or want to begin with a language that's easy to learn and has a wealth of online tutorials.

Q: That's a great choice! QISKIT is indeed a fantastic way to get started with quantum programming, especially with its strong community support and resources.

A: QISKIT has more educational resources than any other quantum programming toolkit. Its documentation, official tutorials, and a large active community make it easy to get help when you are stuck.

Q: Absolutely! The extensive resources available for QISKIT make it a fantastic learning platform. Are there any specific projects or goals you have in mind once you start working with it?

A: Actually, I want to try out IBM Quantum Experience. QISKIT users can run code on actual quantum computers for free, providing valuable hands-on experience.

Q: That sounds like an exciting plan! Gaining hands-on experience with real quantum computers will definitely enhance your understanding of the concepts.

A: Besides, QISKIT's large global user base means strong community support and frequent updates. It also supports various practical applications like quantum chemistry and optimization.

Q: It's impressive how many practical applications QISKIT can handle! Exploring quantum chemistry and optimization sounds like a fantastic way to see the real-world impact of quantum computing.

A: However, sadly, I don't have the background of chemistry and other areas.

Q: No worries! You can always pick up new skills along the way; it’s all part of the learning journey! I’m looking forward to our next chat tomorrow—let’s dive into more fascinating topics together!

A: Thank you

Classical Computing Fundamentals

Classical Computing Fundamentals

Classical computing, which has dominated the technological landscape for over seven decades, operates on well-established principles of digital electronics and Boolean algebra. The foundation of classical computation rests on the binary digit, or bit, which serves as the fundamental unit of information [1]. Each bit exists in one of two definite states: 0 or 1, corresponding to the absence or presence of an electrical signal, respectively.The architecture of classical computers is built upon transistors and logic gates, forming the bedrock of modern computational infrastructure [2]. Transistors function as electronic switches that control the flow of electric current, physically representing the binary states that encode information. These microscopic switches, now numbering in the billions on modern processors, can be rapidly toggled between their two states to perform calculations and store data.Logic gates represent the next level of abstraction in classical computing architecture. These circuits implement Boolean logic operations, including fundamental gates such as AND, OR, NOT, and XOR [2]. The AND gate produces an output of 1 only when both inputs are 1, while the OR gate outputs 1 when at least one input is 1. The NOT gate simply inverts its input, and the XOR gate outputs 1 when inputs differ. These basic operations can be combined to create more complex circuits capable of performing arithmetic operations, data manipulation, and decision-making processes.

The computational model of classical computers follows a sequential processing paradigm, where instructions are executed one after another in a predetermined order [2]. This approach, while highly effective for many computational tasks, becomes increasingly inefficient when confronted with problems requiring parallel processing or the evaluation of multiple possibilities simultaneously. The sequential nature of classical computation means that as problem complexity increases, the time required to find solutions grows exponentially for certain classes of problems.Classical computers excel in tasks that can be broken down into discrete, sequential steps. They have achieved remarkable success in applications ranging from word processing and web browsing to complex scientific simulations and data analysis. The reliability and predictability of classical computation have made it the backbone of modern digital infrastructure, supporting everything from smartphones and personal computers to enterprise servers and supercomputers.However, classical computing faces fundamental limitations that become apparent when dealing with certain types of complex problems. The binary nature of classical bits means that each bit can only represent one state at a time, limiting the computer's ability to explore multiple solution paths simultaneously. This constraint becomes particularly problematic in optimization problems, cryptographic challenges, and simulations of quantum mechanical systems, where the number of possible states or configurations grows exponentially with problem size.

Apply quantum computing in SAP Basis

To apply quantum computing in your SAP Basis consulting and technology work—especially for enterprise platforms like SAP ERP, BOBI, and related modules—you can begin exploring several high-impact domains emerging in SAP’s ecosystem:

### Core Quantum Computing Applications in SAP & ERP Consulting

- **Supply Chain Optimization**  
Quantum algorithms can solve complex logistical problems exponentially faster. For example, SAP and IBM have demonstrated proof-of-concept projects optimizing vehicle space and delivery routes. These allow you to simulate millions of possible supply chain scenarios and instantly identify the best routes, schedules, and inventory allocations—saving time, costs, and reducing emissions[1][2][3].

- **AI-Driven Predictive Analytics**  
Quantum-powered AI can process vast datasets, enabling predictive analytics and forecasting far beyond classical methods. This can boost demand forecasts, risk modeling, and anomaly detection, enhancing SAP Business AI and platforms such as SAP IBP (Integrated Business Planning)[1][4].

- **Fraud Detection and Advanced Security**  
Quantum algorithms can spot patterns and fraud markers in financial data traditional systems might miss, helping banks and enterprises reduce false positives and catch fraud earlier. Simultaneously, quantum computing requires a new discipline of post-quantum cryptography to stay secure as traditional encryption faces disruption from quantum attacks[4][3].

- **Hyper-Personalized Marketing**  
You can use quantum-powered recommender systems for customer analytics, helping target the right users with the right messages at the right time across SAP-based CRM and C/4HANA platforms. Quantum algorithms help simulate and predict customer behaviors and preferences with far greater accuracy[3].

### Practical Steps to Integrate Quantum Computing in Consulting

1. **Stay Informed on Quantum-powered SAP**  
SAP is actively exploring quantum collaborations (e.g., with IBM, Fujitsu). Familiarize yourself with SAP’s quantum roadmap and use cases. Quantum-inspired solutions, such as Fujitsu’s Digital Annealer or cloud-based quantum platforms (IBM Quantum, Azure Quantum), are already being piloted within SAP components[1][2][5].

2. **Build Quantum-Readiness in Your Team**
   - Upskill with quantum computing basics and quantum programming languages (Qiskit, Cirq).
   - Integrate quantum algorithms into AI, data science, and optimization projects wherever feasible[6].

3. **Apply Quantum-Enabled Services to Clients**  
Start offering consulting around:
   - Quantum readiness assessments for ERP landscapes.
   - Integration or pilot projects using quantum-inspired algorithms for supply chain, finance, HR, and marketing modules in SAP[3][7][5].

4. **Leverage Quantum Cloud Services**  
Cloud-based quantum simulators and processors are available even without dedicated hardware. Experiment with quantum optimization APIs and connect them to SAP via SAP Business Technology Platform (BTP) integrations[1][8][5].

5. **Advise on Quantum Security**  
Guide clients to begin transitioning toward post-quantum cryptography solutions for SAP landscapes, especially for highly sensitive data[4].

### Singapore and Global Relevance

In Singapore’s innovative tech hub (your location), keeping abreast of these trends positions you as a leading-edge consultant with skills in both SAP and quantum transformation. Several SAP and ERP consulting organizations already help enterprises build quantum strategies and pilot projects, ensuring early adoption brings a competitive edge[7].

**In summary:**  
Quantum computing will transform SAP consulting work over the next few years—especially in supply chain, AI, fraud detection, optimization, and cybersecurity. To apply it, develop quantum literacy, participate in quantum-SAP partnership projects, leverage cloud-based quantum resources, and advise on relevant business cases and security around quantum[1][4][3][6][5][7].

[1] https://www.whitehallresources.com/2025/02/sap-quantum-computing/
[2] https://news.sap.com/2023/12/vehicle-space-quantum-poc-enterprise-applications/
[3] https://www.linkedin.com/pulse/your-sap-unshackled-how-quantum-computing-can-stefan-holitschke-twbzf
[4] https://www.linkedin.com/pulse/when-quantum-computing-matter-sap-systems-angus-macaulay-v5see
[5] https://wiki.krybot.com/en/SAP/SAP-BTP-(Business-Technology-Platform)/Chapter-99
[6] https://www.bcg.com/capabilities/digital-technology-data/emerging-technologies/quantum-computing
[7] https://www.linkedin.com/pulse/impact-quantum-computing-erp-consulting-architecture-david-hilcher-57tgc
[8] https://www.linkedin.com/pulse/integrating-d-wave-quantum-computing-platform-sap-chatgpt-akula-tnn1c
[9] https://news.sap.com/2024/02/sap-experts-at-forefront-quantum-computing-exploration/
[10] https://erp.today/the-quantum-leap-how-quantum-computing-will-transform-enterprise-software/
[11] https://www.linkedin.com/pulse/role-quantum-computing-enterprise-resource-planning-erp-ledbetter-zzqoc
[12] https://silicon-saxony.de/en/sap-successful-interaction-quantum-computing-and-generative-ai/
[13] https://www.truebays.com/the-impact-of-quantum-computing-on-erp-systems/
[14] https://www.spinquanta.com/news-detail/enterprise-quantum-deployment-a-step-by-step-guide20250116102815
[15] https://www.linkedin.com/pulse/quantum-inspired-sap-business-ai-solution-industrial-dr-biswan-nwruc
[16] https://www.keypartnersolutions.com/post/how-quantum-computing-can-help-erp-systems
[17] https://www.bcg.com/publications/2023/enterprise-grade-quantum-computing-almost-ready
[18] https://oodaloop.com/briefs/technology/sap-ceo-backs-quantum-computing-as-near-term-game-changer/
[19] https://erp.today/quantum-erp-a-business-superposition-for-the-future/
[20] https://www.launchconsulting.com/posts/quantum-computing-what-it-is-and-why-it-matters-for-business
[21] https://www.scribd.com/document/844578453/Quick-Start-Guide-SAP-Quantum-Computing
[22] https://www.t-systems.com/sg/en/insights/newsroom/expert-blogs/quantum-computing-use-cases-1007814
[23] https://www.ey.com/en_gl/insights/consulting/quantum-computing-5-steps-to-take-now
[24] https://research.aimultiple.com/quantum-computing-applications/
[25] https://news.sap.com/2021/11/sap-and-quantum-technologies/
[26] https://www.investors.com/news/technology/quantum-computing-sap-ceo-impact/
[27] https://eajournals.org/ejcsit/tag/sap-business-technology-platform-btp/
[28] https://www.ibm.com/new/announcements/next-wave-of-generative-ai-solutions-for-sap-from-ibm-consulting
[29] https://www.mckinsey.com/about-us/new-at-mckinsey-blog/mckinsey-expands-alliance-with-sap-to-accelerate-generative-ai-enabled-transformation
[30] https://www.protiviti.com/sg-en/quantum-computing-services
[31] https://dragonerp.co.uk/blog/dragonerp-sap-cake-and-quantum-computing
[32] https://news.sap.com/2025/02/joule-sap-uniquely-delivers-ai-agents/
[33] https://www.linkedin.com/pulse/life-sciences-2025-how-quantum-computing-ai-sap-future-bhatnagar-dqu4c

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.

Q:That's a really strategic approach! I admire how they're diversifying their funding sources; it definitely seems like they have a solid plan for future growth.

A:  Operationally, the reit maintains a high portfolio occupancy of 97%, drives positive rental diversions, and invests in property maintenance and enhancement to sustain income growth. These elements together form a disciplined growth approach, combining acquisition-led expansion, capital management, and portfolio optimization to drive decision-making and distribution to unique holders.

A: In summary, the Axis Reit Growth Strategy is a focused expansion of acquisition reit for logistics and industrial properties with strong tenants, supported by flexible capital management and portfolio enhancement initiatives to sustain robust income growth and returns for investors.

A:I believe Axis REIT is better than KLCCP because of its earning growth, asset focus, portfolio, and occupancy, as well as its active acquisition and development. Axis Reit's investments are considered more favorable due to recent strong earning growth, strategic positioning in the growing logistics industry, and proactive acquisition and development activities. In contrast, KLCCP REIT provides a solid and stable income base primarily from office and retail properties, but with more moderate growth prospects compared to the asset focus on industrial sectors. Depending on investors' preferences for growth versus stability and asset type exposure, Axis REIT may be regarded as superior because of its emphasis on rapidly growing industrial assets and demonstrated earnings.

Q: You make a compelling argument! It really comes down to the individual investor’s goals, whether they prioritize growth or stability. Have you had any previous experiences with investments that shaped your current strategy?

A: My previous investments in public bank stocks have likely shaped my investment approach towards Axis REIT strategies in the following ways. First, there is an emphasis on stability and dividend growth. Public banks are favored for their steady earnings, robust balance sheets, and consistent dividend payouts, making them suitable for conservative long-term investors. This experience has developed a strong appreciation for income-generating assets, prompting a focus on metrics like asset-backed returns, regular distributions, and stable growth. The mindset of focusing on well-managed investments means investing in fundamentally sound banks instills discipline and encourages clear decision-making based on a strong track record.

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

The Quantum Computing Comedy Hour: A 3-Minute Introduction to the Weirdest Technology Ever.

Opening Hook
Ladies and gentlemen, welcome to the most confusing three minutes of your life! Today, I'm going to explain quantum computing – a technology so bizarre that even the scientists who invented it aren't entirely sure if it actually works or if they're just really, really lucky guessers.You know how your regular computer uses bits that are either 0 or 1? Well, quantum computers said "Hold my beer" and invented qubits that can be 0, 1, or having an existential crisis about whether they exist at all. It's like Schrödinger's cat, but instead of being dead or alive, it's simultaneously calculating your taxes and playing Minecraft.

The Superposition Situation
Let me explain superposition – the quantum world's way of saying "Why choose?" Imagine you're at a restaurant, and instead of ordering either pizza or salad, you order both simultaneously until the waiter observes your choice, at which point reality collapses and you're stuck with whatever the universe decided you wanted. That's basically how qubits work, except they're doing this with mathematical calculations instead of disappointing lunch decisions.Classical computers are like that friend who can only do one thing at a time – they'll solve your problem step by step, methodically, like following IKEA instructions. Quantum computers are like that other friend who somehow assembles the entire bookshelf while blindfolded, juggling, and having a philosophical debate about the nature of furniture. You're not sure how they did it, but the bookshelf is there, and it only wobbles slightly.

Entanglement: The Ultimate Long-Distance Relationship
Then there's quantum entanglement – Einstein called it "spooky action at a distance," which is scientist-speak for "I have no idea what's happening, but it's definitely weird." When two particles become entangled, they're basically in the ultimate long-distance relationship. Change one particle, and its partner instantly knows about it, no matter how far apart they are. It's like having a spouse who immediately knows you ate the last cookie, even when they're on the other side of the planet.Scientists use this for quantum computing because apparently, the best way to solve complex problems is to create particles that gossip faster than the speed of light. It's like having a computer where all the parts are constantly texting each other about what they're doing, except the texts arrive before they're even sent.

The Interference Pattern of Life
Quantum interference is where things get really wild. It's like having a computer that solves problems by making all the wrong answers cancel each other out, leaving only the right answer standing there looking confused about how it survived. Imagine if you could solve a maze by sending a thousand people through it simultaneously, and somehow all the people who took wrong turns would just... disappear, leaving only the one person who found the exit. That's quantum interference, and yes, it's as mind-bending as it sounds.

Real-World Applications (Sort Of)
Now, you might be wondering, "What can quantum computers actually do?" Well, they're really good at breaking the encryption that protects your online banking, which is either terrifying or convenient, depending on your relationship with your bank balance. They're also excellent at simulating molecular behavior, which means we might finally understand why hot dogs come in packages of ten but buns come in packages of eight – though that might require a quantum computer the size of Jupiter.Scientists are also using quantum computers to optimize traffic flow, which explains why your GPS sometimes tells you to drive through a lake – it's not a bug, it's a feature of quantum navigation that exists in a superposition of being both helpful and completely useless.

The Quantum Mechanic's Dilemma
The best part about quantum computing is the uncertainty principle. It's like having a mechanic who can either tell you exactly what's wrong with your car or exactly how much it'll cost to fix it, but never both. Quantum computers are similar – they can give you incredibly precise answers to problems you didn't know you had, or they can give you vague answers to the problems you actually need solved.And just like Schrödinger's cat, quantum computers exist in a state where they're simultaneously the future of technology and an elaborate practical joke that physicists have been playing on the rest of us for decades.

Closing: The Quantum Future
So there you have it – quantum computing: where the impossible is routine, the routine is impossible, and the computers are having existential crises about their own existence. It's a field where "it works in theory" is considered a ringing endorsement, and where the phrase "that's not how physics works" is met with "hold my quantum beer."In the future, we'll all have quantum computers that can solve any problem instantly, except for the problem of explaining how they work. Until then, we'll just have to trust that somewhere in a lab, there's a computer that's simultaneously calculating the meaning of life and wondering if it remembered to turn off the coffee maker.Thank you, and remember – in the quantum world, this speech both happened and didn't happen until you observed it ending. waves hand mysteriously

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.

From The Edge July 28-Aug 3

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 valueintrinsic 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

AssetHealth Value ($)Intergenerational Value ($)Tourism Value ($)Climate Value ($)Total Annual Value ($)
Air Quality150B     200B100B50B500B
Water Quality100B     120B50B30B300B
Forest Reserves200B     600B150B50B1T

Total Natural Capital Value: $1.8T/year


4. Implementation Framework

  1. Adjust GDP: Incorporate natural capital depreciation (e.g., deforestation as liability)
  2. Tax Reform: Levy extractive industries to fund restoration (e.g., “Amazon Tax”)
  3. Stewardship Bonds: Sovereign bonds tied to air/water quality targets
  4. 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

  1. Adjust GDP: Incorporate natural capital depreciation (e.g., deforestation as liability)
  2. Tax Reform: Levy extractive industries to fund restoration (e.g., “Amazon Tax”)
  3. Stewardship Bonds: Sovereign bonds tied to air/water quality targets
  4. 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

Reducing border disputes and fostering peace requires a combination of diplomacy, cooperation, and long-term strategies that address root causes. Here are concise suggestions:

Diplomatic Dialogue: Encourage regular, open communication through bilateral and multilateral talks, mediated by neutral parties like the UN, to resolve disputes peacefully.

Joint Economic Zones: Establish shared economic zones along contested borders to promote mutual benefits, like trade or resource sharing, reducing incentives for conflict.

Cultural Exchange Programs: Foster people-to-people connections through cultural, educational, and sports exchanges to build trust and reduce nationalist tensions.

Clear Border Demarcation: Use advanced technology (e.g., satellite mapping) for precise border delineation, agreed upon by both parties, to minimize ambiguity.

International Arbitration: Submit disputes to impartial bodies like the International Court of Justice for legally binding resolutions, ensuring fairness.

Regional Cooperation: Strengthen regional organizations (e.g., ASEAN, African Union) to mediate disputes and promote collective security agreements.

Conflict Prevention Mechanisms: Establish early-warning systems and hotlines between nations to de-escalate tensions before they escalate into disputes.

Resource Sharing Agreements: Negotiate equitable sharing of contested resources (e.g., water, oil) to reduce competition and foster collaboration.

Promote Soft Power: Encourage nations to use cultural diplomacy and humanitarian aid to build goodwill, reducing hostility over borders.

Education for Peace: Integrate peace education in schools to promote tolerance, understanding, and the value of cooperation over conflict.

Implementing these requires sustained commitment, trust-building, and international support to address both immediate tensions and underlying issues like resource scarcity or historical grievances.

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