Graeme Briggs: The Pandora Man?

A key Australian financier named in the 'Pandora Papers' has acquired oceanside mansions in Australia's most exclusive postcodes, shelled out a fortune on his art and wine collections and even spent millions on rare luxury pens.

The lavish lifestyle of Graeme Briggs, 75, came to light when the staggering financial leak exposed the highly secretive world of offshore financing, where the globe's rich and powerful figures funnelled money through small island nations.

 

Asiaciti founder Graeme Briggs

Clients pay Briggs' Singapore-based Asiaciti huge sums of money to set up complex corporate structures and trusts in order to minimise their taxes and protect their vast wealth. The process isn't illegal but is often frowned upon by the public, tax-collectors and policymakers. More than 400 Australians were named in the 12 million documents from 14 financial services companies operating in tax havens including the British Virgin Islands, Panama, Belize, Cyprus, the United Arab Emirates, Singapore, and Switzerland.

Many of the Australians are clients of Asiaciti who have sophisticated networks set in Pacific Island nations, such as the Cook Islands and Samoa.

The documents were obtained by the International Consortium of Investigative Journalists (ICIJ) and studied by more than 650 reporters from the BBC's Panorama, The Guardian and more than 100 other news outlets. 

Asiaciti criticised the investigation by the ICIJ media partners in a statement saying the company abides by all necessary regulations.

Mr Briggs has not been accused of any wrongdoing. The ambitious Australian businessman has amassed a $62million fortune and now lives the high life after somewhat humble beginnings.

Growing up in Echuca on the Victorian side of the Murray River, the son of a dairy farmer had a knack for numbers from a very early age. A fully qualified and practicing chartered accountant by the age of 23, at 30 he had established Asiaciti.

The outfit made a name for itself among the super-rich during the 1980s as it set up offices in small palm-tree laden paradises which had stringent confidentiality laws but less restrictive legislation when it came to international businesses and foreign capital. 

Briggs had a passion for high-art and Italian vino and lays claim to a $400,000 wine cellar.

More bizarrely, he has spent more than $4million on rare Japanese fountain pens.

In the past, Asiaciti has drawn attention for some of its clients.

The documents uncover how Asiaciti managed to build its fortune by helping some high-risk clients along the way.  They include Moldovan politician Vladimir Plahotniuc - who is a fugitive - Myanmar's agriculture minister Nyunt Tin - who resigned over corruption - and Nigerian politician Abubakar Atiku Bagudu - who laundered public funds. 

In 2020, Asiaciti was fined US$793,000 after the organisation failed to introduce effective policies to prevent money laundering between 2007 and 2018. 

The treasure trove of documents shows how 35 current and former world leaders - including associates of Vladimir Putin - used accounts in tax havens to accrue huge amounts of wealth and carry out transactions.  

Russian President Mr Putin was linked to secret assets in Monaco, and an offshore company owned by his alleged lover purchased a $4 million apartment below the principality's casino. 

Former British prime minister Tony Blair and Jordanian King Abdullah II are also among those included in the data drop. 

The Pandora Papers go on to link several high-profile entertainment figures including singer Shakira, and supermodel Claudia Schiffer. 

And of course, there are Malaysians in the list. Some may acknowledge and others will deny their activities. What troubles many are the ways in which the rich can “hide” their wealth under BVI companies and get away with it all – tax or no tax. In a depressing economic situation, this is not welcome news when many are struggling to survive. In fact, Malaysia ranks 5th among all countries for illicit capital flight. Global Financial Integrity (GFI)’s report estimated Malaysia lost up to about USD431 billion (RM1.8 trillion) in illicit outflows between 2005-2014. (It is around 6-10% of the value of trade).

How can we stop these leakages classified as mis-invoicing, errors and omissions, reverse investment and so forth? The Central Bank is very particular on remittance of a maid’s salary to Indonesia but not if the former Prime Minister and Minister of Finance is involved in shady shenanigans.

Reference:

Lush mansions, fine wine and a $4m PEN collection, Levi Parsons and Aidan Wondracz, Daily Mail Australia, 4 October 2021

Pandora Papers Leaked: Malaysia ranked 5th in the world for RM1.8 trillium outflow, https://thecoverage.my

The 5 Basic Laws of Human Stupidity

The Basic Laws of Human Stupidity is a short essay written by the Italian economist Carlo Cipolla. The first edition was written in English and released in 1976. Originally, it was intentionally distributed only among his friends on a confidential basis. The reason is simple. It was intended as a sort of joke.

The 5 basic laws of human stupidity as outlined by Carlo Cipolla are as follows:

First Basic Law.

Always and inevitably everyone underestimates the number of stupid individuals in circulation.

Stupid people exist, but according to Cipolla you may be deeply underestimating their number and influence. He was so strongly convinced about this that he asserted that “any numerical assumption would turn out to be an underestimate”. This statement was obviously an exaggeration. On the other hand, such an idea should not be taken too lightly. After all, this is not the first law by accident.

Please, think about all the people that you had judged intelligent, before realizing they were behaving stupidly and obtusely. If you are still not convinced, Cipolla suggested an experiment. Go out in the street and see how many people insist on obstructing you for no apparent reason. What would you call their behavior if not stupid?

Second Basic Law

The probability that a certain person is stupid is independent of any other characteristic of that person.

Cipolla considered stupidity as a human characteristic, like having blond hair or black eyes. Consequently, it cannot but be distributed roughly equally in all walks of society, regardless of level of education. “Whether one frequents elegant circles or takes refuge among cannibals, whether they lock themselves up in a monastery or decide to spend the rest of their life in the company of a beautiful partner, the fact remains that they will always have to deal with the same percentage of stupid people”, he concluded.

In this pessimistic view, human beings are doomed to deal with stupidity. Also, according to Cipolla, there are no safer places or solutions to avoid it. The only thing you can do is accept this and live with it for the rest of your existence.

Third Basic Law

A stupid person is one who causes losses to another person or a group of people while they gain nothing or may even suffer losses.

Carlo Cipolla considered this the golden and most important law. He did not consider stupidity a matter of IQ, but rather a lack of relational skills. In particular, he believed that it is possible to classify people based on their behavior. Stupid people are the ones who harm others and often themselves. On the contrary, the behavior of intelligent or overly naive people is aimed at helping others.

Specifically, he believed that stupid human beings behave in an irrational and difficult-to-understand way. This does not mean that their actions do not have an impact on your life. On the contrary, you are very likely to remember people who hindered you, causing you difficulties, frustrations, and suffering. What is even more surprising, that such stupid people may not even gain anything from their behavior. In fact, Cipolla stated that“there are people who, by their illogic actions, not only cause harm to other people, but also to themselves. Such people belong to the genus of the super stupids.”

Fourth Basic Law

Non-stupid people always underestimate the damaging power of stupid individuals. In particular, non-stupid people constantly forget that in any time and place and circumstance dealing and/or hanging out with stupid people always turns out to be a costly mistake.

To make this law clearer, Carlo Cipolla added that “stupid people are deadly dangerous because reasonable people find it difficult to imagine and understand stupid behavior”. In such a view, stupid people’s attacks always catch intelligent ones by surprise. This makes it even more difficult to come up with a rational defense. On the other hand, this would be of little use since illogic actions cannot be understood using logic.

Fifth Basic Law

Stupid people are the most dangerous type of people.

This law comes as a natural consequence of the previous and fourth basic law. Also, if you have no clue about what Cipolla meant here, he made it even more obvious by adding the following corollary:

A stupid person is more dangerous than a bandit.

Of the five laws seen so far, this should be the most understandable and reasonable one. In fact, common sense tells us that intelligent people, no matter how hostile they may be, are predictable. In contrast, stupid people are not. This subtle difference makes stupid people incredibly more fearsome than intelligent people.

Carlo Cipolla taught us that by using only irony and common sense, it is possible to conceive captivating ideas. As we have just seen, he was able to lightheartedly address human stupidity in a clear and incisive way. By summarizing such a complex and controversial subject in five basic laws, he devised a genuine and fascinating theory. 

This is best exemplified when religious zealots want to ban the use of Timah as the name of a whiskey because alcohol is haram and Timah can be easily confused with Fatimah.

While we are at it the government should also ban the import of the following, amongst others:

1. Aisha – a white wine from Italy. 
2. Aman – in Malay meaning ‘peace’. This is a tequila from Mexico. 
3. Amira –a red wine from Spain.
4. Ayam –it is a wine from Egypt. 
5. Bintang – the best selling beer in Indonesia.
6. If you want to flourish and live long, drink Omar (a whiskey from Taiwan) 
7. However if you feel poetic drink Omar Khayyam (U.K). 
8. Cap Tikus is a traditional arak from Sulawesi. 
9. Cinta – a sparkling wine from Italy. 
10. If you don’t want Cinta take Sayang (a wine from France)..
11. If fed up with no 7 and 9 then go for ‘Dara’ (Virgin in Malay)- a Spanish Red. 
12. If none of the above please you, you can Tanya (a wine from Israel) “Apa lagi?”
13. For those who worry about their soul they can take Jiwa (soul) which is a star fruit based wine from India.
14. For those who want to see tomorrow, take Mata Hari (an alcoholic beverage from Austria).
15. How about Raya to celebrate? This is an excellent wine from India.

 (The above names courtesy of Coconut.com)

In Indonesia, the largest Muslim country in the world, other religions show off their symbols proudly yet no Indonesian has complained of being confused. They have Hindu symbols on their rupiahs yet no one has complained.

We can find a thousand and one things to confuse us if we are so minded, each one more absurd than the last. Most of us are not confused, God has given us good brains to tell  the difference. 

References:

The 5 basic laws of human stupidity, Antonello Zanini (https://medium.com)

The Malays are an easily confused people, Mariam Mokhtar (https://www.mariammokhtar.com)

Debt Dependency or Better Taxation?

Statistics from the Inland Revenue Board (IRB) reveals that less than 20% of Malaysians are subjected to income tax. According to data that was provided in the ministry’s Fiscal Outlook Report 2020, as at end-2017, 62.4% out of 1.25 million companies that were registered with IRB, only 7.8% are subjected to tax. The report further added that only 16.5% of 15 million workforce were subjected to individual income tax. With Malaysians too suffering a loss of income due to Covid-19, the 2020 national median income has now dropped to just RM2,062 per month, according to the Statistics Department.

Clearly, half of the population is not being taxed at all as the current threshold for individuals to be taxed starts at only RM3,141 per month, based on monthly net remuneration for a taxpayer with a single status.

This amount alone is 52% higher than the median salary of Malaysians in 2020. Even then, the tax collection is nothing as just RM1 is deducted for taxation purposes based on the Monthly Tax Deduction Schedule 2018.

This suggests a person with a net salary of RM3,141 per month effectively only pays 0.4% of his annual income as taxes, which is barely the cost of a cup of coffee at Starbucks.

No wonder Malaysia’s tax collections are in dire straits when measured with the nation’s economic output.

Pankaj C Kumar provided Chart 1 and Table 1 below in an article on debt dependency in Starbizweek, 9 October 2021.

Malaysia has been running a fiscal deficit since the Asian Financial Crisis in 1998 and will likely do so right up to at least 2025, as the government now projects a fiscal deficit of 3%-3.5% by then, based on the recently released 12MP.

Under the 12MP, the government is also expected to spend a massive amount of RM400bil in development expenditure to take the Malaysian economy to the next level with a projected nominal GDP of RM2.021 trillion by 2025.

Malaysia also expects average monthly household income to increase from RM7,160 to RM10,065 by the end of the 12MP, a CAGR of 8.1%, while Compensation to Employees is expected to jump to 40% by 2025 from the 37.2% achieved in 2020.

Seems to be a tall order considering that Malaysia is stuck at the low wage structure for a long time, mainly due to the failure to address income inequality and very low minimum wages of just RM1,200 per month in urban areas.

Malaysia will likely continue to borrow to run its economy, at least for the next four years.

This will raise the federal government’s total debt, from an estimated figure of RM984bil this year, as seen in Table 1, to as much as RM1.32 trillion by 2025, leading to a debt-to-GDP ratio of approximately 65%. This fiscal gap remains a concern and if not addressed properly, will lead to greater deterioration in time to come.

Based on Chart 1 and Table 1, Malaysia is stuck in a low tax collection environment and rising debts. While the new statutory debt ceiling of 65% will likely be sustained into the future, Malaysia needs to address the issue related to fiscal debt management and taxes urgently to bring the country back to a sustainable path.

For a start, the government should target to raise tax revenue as a percentage of GDP to 15% by 2025 and to 20% by 2030 to ensure sustainable and responsible fiscal management. Based on nominal GDP of RM2.021 trillion in 2025, taxes collected then will be about RM303.1bil, which is almost double what was collected in 2020 amounting to RM154.4bil.

However, of the RM148.7bil increase, only about RM58.1bil or 39% comes from tax enhancement strategies and new taxes, while the balance RM90.6bil or 61% is generated via organic growth of the economy once the tax strategies are in place.

There is need for better tax collection and retaining good staff within the IRB including its CEO. In addition, the Government needs to introduce three new taxes/adjustments:

1. Higher graduated tax regime for those earning RM1 million p.a. or above. The current maximum tax bracket is 30%. This has to be revised to 40% for the very top;
2. Windfall tax (Excess Profit Tax – to widen the coverage to include pharmaceuticals, glove manufacturing, banking, energy companies and others; and
3. “Obesity” tax of 15% on all products by fast food chains and fizzy drink manufacturers (Kerala State in India imposes a 14.5% tax on “junk” food and drinks.
4. Forex transaction tax of 0.01% of each transaction.

Other possibilities like wealth tax, inheritance tax, capital gains tax and GST be deferred to 2025 or later when we have reached the developed nation status.

Reference: 

Debt dependency: A ticking time bomb, Pankaj C Kumar, Inside Insights, Starbizweek, 9 October 2021

Can Property Market Bounce Back in 2022?

The virtual Malaysian Property Summit 2021 had a consensus that the market next year (2022) will continue on its path to recovery and hopefully, reach pre-pandemic levels. This was reported by Eugene Mahalingam in Starbizweek, 16 October 2021.

Rahim & Co research director Sulaiman Akhmady Mohd Saheh said the gradual reopening of the economy will help spur the property sector. Additionally, Sulaiman said increased vaccination rates, easing physical containment measures and build-up in financial savings from 2020’s expenditure-suppressed period, will spur consumer sentiment.

Going into 2022, Datametrics Research and Information Centre managing director Pankaj Kumar said domestic interest rates are expected to remain stable and supportive of market activities. “The property market today is a buyers’ and renters’ market. However, household income will need to revert back to 2019 levels and rise, before affordability can be improved.”

Pankaj is hopeful that the ongoing Home Ownership Campaign (HOC) will be extended into 2022 and comprise the secondary market as well. Currently, the HOC is only applicable for properties within the primary market.

Meanwhile, Sunway University economics professor Yeah Kim Leng said the local property market is expected to experience a rebound in 2022, on the back of the stronger economic performance forecast for next year.

Yeah however adds that there is still an undersupply of affordable housing and oversupply of high-end units being launched. This oversupply of units has led to a serious overhang situation that the Malaysian property market has had a tough time resolving for many years.

According to the National Property Information Centre (Napic), a total of 31,112 overhang units worth RM20.09bil was recorded in the first half of 2021. This was an increase of 5.2% and 6.2% in volume and value respectively, against the preceding half.

The serviced apartment sub-sector, meanwhile, recorded 24,064 overhang units with a value of RM20.41bil in the first six months of this year, indicating a marginal increase of 1.9% in volume. However, value declined by 10.2% compared to the preceding half.

Meanwhile, the unsold, under construction recorded 42,358 units, an increase of 20.1%. To address the overhang situation in the country, the government kicked off the HOC in January 2019. The campaign, which was intended for six months, was extended for a year.

It generated sales totalling RM23.2bil in 2019, surpassing the government’s initial target of RM17bil.

The government reintroduced the HOC in June last year under the Penjana initiative to boost the property market after it was adversely affected by the Covid-19 pandemic. The campaign was extended to the end of this year, with property consultants and developers fully supporting the move.

In March this year, during the Real Estate and Housing Developers’ Association’s briefing on the property market for 2021, its president Datuk Soam Heng Choon revealed that since the HOC was reintroduced last June, a total of 34,354 residential units valued at RM25.65bil had been sold as at Feb 28, 2021.

To curb the overhang situation, Pankaj says developers need to focus on what the market wants. Khong & Jaafar managing director Elvin Fernandez also says one can’t just randomly freeze a particular project once it has been greenlit.

Elvin believes that the power to address the overhang situation rests with the local authorities and the banks. “The local authorities should demand an independent market study from the developer, prior to providing a development order to developers. “Similarly, the banks should also demand the same (an independent market study) from developers before approving a loan”. “Therefore, both these bodies (local authorities and banks) need to play a role in determining supply.” Meanwhile, TA Securities anticipates the upcoming Budget 2022 to be primarily helpful to low-to-middle-income earners, as well as to first-time home owners.

Budget 2022 will be tabled on Oct 29. Unless the Budget provides “goodies” for the property sector, recovery is likely to be slow. The MoF has many sectors to assist and property is not its prime interest. So, 2022 is likely to be a slow year, with mid-2023 or early 2024 more likely to reach pre-pandemic levels in terms of transactions. That’s not good news to the sector but the reality has to be met.

Reference:

Property market seen to bounce back in 2022, Eugene Mahalingam, Starbizweek, 16 October 2021.

ASEAN Summit: Exclude Myanmar?

Military-ruled Myanmar is to be excluded from the Association of Southeast Asian Nations (ASEAN) summit scheduled for October 26-28. In August, the 10-member Southeast Asian bloc selected Brunei’s Second Foreign Minister Erywan Yusof as its special envoy to Myanmar, to help solve the political crisis that has followed the military’s seizure of power in February. But the junta’s marked lack of cooperation with the envoy has prompted Malaysian Foreign Minister Saifuddin Abdullah to propose that it be excluded from the summit. 

The junta’s refusal to grant the envoy access to “all parties” was unsurprising, given the junta’s lack of cooperation with the implementation of the Five-Points Consensus agreed by ASEAN at its special summit in Jakarta in April. This included the appointment of a special envoy, included calls for inclusive dialogue and the delivery of humanitarian aid.

 “... The junta has played ASEAN for a fool, using it to try and gain legitimacy, while at the same time increasing its brutal reprisals against the people,” said Charles Santiago of the advocacy group ASEAN Parliamentarians for Human Rights.

ASEAN leaders have recognized the threat that the Myanmar crisis poses to the bloc’s legitimacy. In March, Singaporean Foreign Minister Vivian Balakrishnan said in a statement that failing to take meaningful action in the case of Myanmar “would starkly underscore our lack of unity, and undermine our credibility and relevance as an organization.”

But the bloc’s accommodating approach – one that basically took the junta at its word – has underscored international perceptions of ASEAN as a forum of complicity and inaction.

While ASEAN’s Charter does not contain an explicit power to expel or suspend a nation’s membership, Aaron Connelly of Singapore’s International Institute for Strategic Studies noted that Article 20 of the Charter does contain a broadly worded provision stating that “in a case of a serious breach of the Charter or non-compliance, the matter shall be referred to the ASEAN Summit for decision.”

This would seem to grant the other nine members of ASEAN the scope, to craft new terms of reference for the bloc’s engagement with Myanmar.

The problem with military juntas, dictatorship and the like is not just Myanmar but Thailand, Cambodia or Vietnam. If one makes a case for intervention in exceptional circumstances, then ASEAN’s non-intervention policy in domestic issues is jettisoned. It is time ASEAN to set  criteria for intervention in exceptional cases and follow the framework assiduously. That will set the tone that “club” rules include no wife abuse and the like. Good luck!

 

Source: https://www.theedgemarkets.com

Source: https://www.theedgemarkets.com

Reference:

Myanmar Junta could be excluded from ASEAN summit: Malaysia, Min Aung Hliang, October   5, 2021 (https://thediplomat.com) 

Asiaciti Trust and the Pandora Papers!

A Singapore-based offshore services provider has come under the spotlight amid leaked offshore data on the world's rich, famous and powerful people.

Just under two million documents - of the 11.9 million files in the dubbed Pandora papers - have emerged from inside Asiaciti Trust, founded by Australian accountant Graeme Briggs in 1978. According to the International Consortium of Investigative Journalists (ICIJ), the organisation that received these leaked documents, Asiaciti had made a fortune managing the vast wealth of the politically elite across the world.

Four years ago, ICIJ had also flagged Asiaciti in its investigation in relation to an earlier data leak branded the Paradise Papers. Then, it accused the entity of "managing millions for a carousel of millionaires and fraudsters".

Among its clients is the family of Serik Burkitbayev, a former aide to Kazakhstan president Nursultan Nazarbayev and head of Kazakhstan's state-owned oil and gas company. Burkitbayev was in March 2009 convicted of embezzling US$20 million, among other crimes, and sentenced to six years in prison, according to Kazakh news media.

The Pandora papers also sheds light on Asiaciti's dealings with prominent Russian businessmen Kirill Androsov, a former deputy chief of staff to Vladimir Putin; chairman of Russian bank Sberbank and former minister of economics Herman Gref; as well as Evgeny Novitsky, former president of Russia's largest publicly traded diversified holding company Sistema.

The documents showed that the Monetary Authority of Singapore (MAS) had taken issue with Asiaciti's handling of some transactions involving two of the Russians as examples of the business failing to properly corroborate the origins of its clients’ funds. According to MAS, the company failed to look into the background of "unusually large transactions with no obvious economic purpose", undertaken by "politically exposed persons" (PEPs).

MAS was referring to individuals entrusted with prominent public functions domestically, in a foreign country or in an international organisation. They may include heads of state, government leaders or senior executives of state-owned corporations.

The company's failures took place between 2007 and 2018 and were identified by the MAS in an inspection. However, the Pandora Papers data leak covers the time period from 1996 to 2019.

The firm later took remedial measures to address the deficiencies identified by MAS, including conducting a review of customer accounts and transactions, terminating several higher-risk trust accounts and filing suspicious transaction reports.

The use of offshore companies is not illegal or by itself evidence of wrongdoing, but news organisations in the consortium said such transactions could be used to hide wealth from tax collectors and other authorities.

An ICIJ report also showed that Asiaciti accepted Pakistani politician Moonis Elahi as a client despite having information that he was involved in several corrupt land development projects and had "set up a fake company, fraudulently obtained loans and sold land at inflated prices to government agencies".

Asiaciti's other notable clients unveiled by the leak include Qatar's former prime minister Hamad Jassim Al Thani, Brazilian politician Eduardo Cunha, who was sentenced to 15 years' jail in 2017 for corruption, tax evasion and money laundering, and Thirukumar Nadesan, a member of the Sri Lankan prime minister's family, who has been charged with misappropriating public funds and is yet to stand trial.

In July 2020, Singapore's MAS fined Asiaciti S$1.1 million for inadequate safeguards against money laundering and terrorism financing - including its failure to look into the background and purpose of “unusually large transactions with no obvious economic purpose”, undertaken by “politically exposed persons”. 

Laws in Singapore require that management at professional firms approve any business done with "politically exposed persons", and for the firms to do their due diligence in establishing the source of these individuals' wealth and of the specific funds to be invested.

The latest Pandora papers cover Asiaciti's operations in Singapore, Hong Kong, Cook Islands, Nevis, New Zealand and Panama, involving 25 politicians. These documents span over two decades, from 1996 to 2019.

Asiaciti said that reports published by the ICIJ and its partners contain "numerous inaccuracies" and in many cases do not represent the context of a situation. It maintained that the business has a strong compliance programme, and each of its offices have passed third-party audits for practices to guard against money laundering and terrorism financing.

Asiaciti could be the tip of the iceberg. MAS has an onerous task to put things right – the “clean” image is being tarnished with scandals like Asiaciti and 1MDB. Authorities need to work together to recover lost sums and not depend on the FBI or DOJ to do so. Integrity is wholly lacking even if these actions are within the ambit of the law. Will Malaysian authorities follow-up on individuals named in the Pandora Papers?

References:

Singapore’s Asiaciti Trust under spotlight in Pandora papers offshore data leak, Kelly Ng, October 5, 2021 (https://www.businesstimes.com.sg) 

MAS examining info from Pandora Papers about Asiaciti Trust, a S’pore-based firm mentioned in leak, Jolene Ang, Oct 6, 2021 (https://www.singaporelawwatch.sg)

Timah: What a Name!

On October 16, 2021, the Consumer Association of Penang (CAP) called for the government to ban a local brand liquor called 'Timah'. Its advertisement displays a long bearded man with a skull cap resembling a religious person. CAP education officer N.V. Subbarow slammed relevant authorities for permitting the item to be sold in the country.

Source: https://whisky.my

"The brand name 'Timah' insults the Muslim community as it resembles a Malay and Muslim name shortened from the name 'Fatimah'” said Subbarow. The Malaysian-made whisky is sold at RM190 per bottle containing 40 per cent alcohol. "We are calling for the government to come clean on the issue. We urge the relevant authorities to ban the product immediately," he said.

Based on @TIMAHWhiskeyOfficial via Facebook, it has come up with an explanation regarding the name Timah which was referring to the Malayan tin mining era during the British colonial days of Malaya.

Timah in Bahasa Melayu means "tin", a soft silvery-white metal ore, and Malaysia was once a major producer of tin. It also explained that the man depicted on the whisky label was Captain Speedy, who introduced whisky culture back then. "TIMAH is meant to be enjoyed by non-Muslims above the legal alcohol purchasing age” according to Winepak Corporation – the promoters.

Another Malaysian brandy named “Sahip” has also run into controversy. New Straits Times reported that Dr Shamsher Singh Thind, who is a lawyer and criminologist based in George Town, Penang, says the domestic brandy's name is similar to the word "sahib".  Sahib is an Arabic loanword that has passed into several Indian languages, where it's used to refer to "sir" or "master", and sometimes as an honorific title for names of saints and gurus. According to Shamsher, it's not just Timah that Malaysians should be focusing on.

He argues, that the label on the Sahip bottle "shows a bearded man in a turban on the horse carrying a flag, which strikes an uncanny similarity to the famous portrait of Guru Gobind Singh Ji".

Source: http://sixthseal.com

Then there is “Omar”, “Abu Nawas”, “Royal Salute” among other whiskey brands which could confuse the public!

Seriously, there is no end to imagination on how one could perceive a brand name. Can we have some sanity here, instead of being the butt of jokes? Don’t we have better things to do?

References:

CAP calls for ban on “Timah” alcohol, Zuhainy Zulkiffli, New Straits Times, October 17, 2021 (https://www.nst.com.my)

A Sikh lawyer now wants Malaysian-made Sahip brandy banned for sounding like “Sahib”, Sadho Ram, October 19, 2021 (https://says.com)

12th Malaysia Plan, Budget 2022 and GDP Growth

It is a tall order to achieve 4.5% to 5.5% growth during the 12th Malaysian Plan period. That view is shared by Lee Heng Guie of Socio-Economic Research Centre. For 2021, it is likely to be 4% at best. And for the period up to 2025, more likely it will average 3% to 4%. Why?

There are several challenges which are not addressed – productivity, equity quota, education mis-matches, slow adoption of green and higher technologies, policy flip-flop and of course climate of political instability. Recent key data on exports, industrial output, wholesale and retail sales as well as loan demand show a decline in growth. This is no short-term phenomenon. Many businesses are scarred by the pandemic. Only brave souls launch rashly forward. The majority are cautious. Why? With depleted internal resources, and a non-conducive investment and political climate, domestic demand and private investment will be hard-pressed to come by! Cash handouts and moratoriums are short-term relief measures. Then there are slogans and catch-phrases for the medium and longer-terms. MIER’s business confidence index was 87.5, well below the optimism threshold of 100.

Budget 2022 must lay out a solid base for growth in the shorter and medium term. On one hand, it seems quite easy to do so. Why? There are so many apparent “low-hanging” fruits – suspend the NEP; transform the education investment to reflect future labour requirements; create skills and jobs in high value-added sectors; focus on green technology; develop AI for resource-based sectors; reduce dependence on foreign labour through progressive automation of processes (agriculture, construction and services); create champions/models for others to emulate. And many more.

On the other hand, politics will stop progressive moves. The same elite will want larger contracts rather than structural changes. So, there will a push for large, wasteful projects! And the answer is the multiplier and “trickle-down” effect will provide the desired growth. Meanwhile, inequalities will widen and racial rhetoric will increase to a higher decibel.

New taxes are probably on a “back-burner”. There will be some who may want GST back. That tax could be considered if we are a high-income nation and our Gini coefficient has dropped to 0.30 instead of 0.4 or thereabouts currently. But an improved collection system, widening of the excess profit tax and a higher graduated personal tax for the rich (above RM0.5 million per annum) will help reduce the deficit gap. Can we do that?

Reference:

Moderate growth more likely, Ganeshwaran Kana, StarBiz, The Star, 8 October 2021

Global Middle Class Has Shrunk in 2020?

One of the most economically significant developments in the past decade is the emergence of a global middle class. The expectation that this cohort of consumers would continue to grow relentlessly, as rising incomes in developing countries lifted millions out of poverty each year, has been a central assumption in multinationals’ business plans and the portfolio strategies of professional investors.

For the first time since the 1990s, the global ¬middle class shrank in 2020, according to a recent Pew Research Center (“Pew”) estimate. About 150 million people—a number equal to the populations of the U.K. and Germany combined—tumbled down the socioeconomic ladder in 2020, with South Asia and sub-Saharan Africa seeing the biggest declines.

Pew, which has been researching the topic for more than a decade, labels as middle income those making from $10.01 to $20 a day, using data that smooth out differences in purchasing power across countries. In Pew’s analysis, there’s a separate ¬upper-middle-income band made up of those earning $20.01 to $50 a day. 

Taken together, Pew’s middle-income and upper-middle-income brackets encompass roughly 2.5 billion people—or a third of the world’s population. China, which by Pew’s definition is home to one-third of the world’s middle class, appears to be recovering quickly, but many other developing countries face diminished economic prospects.

As in other countries, India’s poorest have borne the largest share of the economic pain from the coronavirus crisis. The downturn has also wiped out scores of white-collar jobs such as engineers and teachers. About 21 million salaried workers lost their jobs between April and August of 2020, according to the Centre for Monitoring the Indian Economy. India’s middle class shrank by 32 million people in 2020, accounting for 60% of the worldwide drop in the number of people earning $10-$20 a day, according to Pew Research Center estimates. The reversal looks like the largest India has seen since it began liberalizing its economy in 1991.

The ripple effects have been particularly visible in India’s automobile sector, which is the world’s fourth-largest and accounts for half of the country’s entire manufacturing output. It saw a fall in vehicle sales of more than 18% in the 12 months through February.

In its latest World Economic Outlook, released in full on April 6, the International Monetary Fund predicts the global economy in 2024 will be 3% smaller than it would have been without the pandemic, largely because developing world governments have less room to spend their way to recovery, as the U.S. and Europe are doing.

The divergences are stark. India will end 2021 with a gross domestic product that’s 5.2% smaller than it would have been otherwise, according to forecasts by Bloomberg Economics. Indonesia’s output will be 9.2% smaller than its pre-crisis trend foretold. The U.S.? Just 1.6% smaller.

Carmen Reinhart, the World Bank’s chief economist, worries we’re just starting to get our heads around the second-order economic effects of the pandemic and that a rebound in growth rates is being mistaken for a lasting recovery.

Immunizations are proceeding far more slowly in poorer countries that have yet to gain the same access to vaccines as the rich world has. But it goes further than that. In many emerging economies, Reinhart says, banks are wondering whether a surge in lending to consumers and small businesses in years before the pandemic will come back to bite them. She’s worried that lenders will curtail credit, which could delay the economic healing.

Reinhart is also concerned that in some countries governments may be forced to switch into austerity mode prematurely because they can’t shoulder their expanded debt loads. And while inflation is muted in the U.S. and Europe, in places such as Brazil food prices are soaring, which is leading central banks to tighten monetary policy prematurely. The global economy is “bifurcating,” she says. “This has been a very long year, and I think the damage has been underestimated.”

What about Malaysia? We have 20% more in the B40 group because of the pandemic and it will take longer for unemployed and under-employed folks to find suitable jobs. Meanwhile, we worry about non-essential issues like race and religion!

Reference:

An estimated 150 million slipped down the economic ladder in 2020, the first pullback in almost three decades,  Shawn Donnan, Vrishti Beniwal, Marisa Wanzeller, Shannon Sims, Prinesha Naidoo, Randy Thanthong-Knight, Suttinee Yuvejwattana, Phil Kuntz and Michelle Jamrisko (https://www.bloomberg.com)

Keluarga Malaysia and National Unity?

The National Unity Ministry is coming up with the National Unity Action Plan soon. The new Prime Minister launched the Malaysian Family concept and everyone in the ruling coalition jumped straight into the bandwagon. The National Unity Minister Datuk Halimah Mohamed Sadique is doing everything she can to grab every possible opportunity to keep her ministry and herself relevant to the premier’s new concept.

An overall blueprint plan will include the Perpaduan Kindergarten Early Childhood Education Plan 2021-2030, the Rukun Tetangga Community Leadership Empowerment Plan 2021-2030 and the Keluarga Malaysia Unity Plan. The ministry is also creating the Kelab Rukun Negara modules in schools and the Rukun Negara Secretariat at the university level to instil the spirit of Keluarga Malaysia. 

The plans look good on paper but effect minimal changes on the rising polarisation on multi-racial Malaysia, which was largely caused by politicians and their operatives across the country over the last 64 years. Everyone who has lived in Malaysia for the last 30-40 years would know plans are just made to create a feel-good feeling temporarily.

Non-Malays and Non-Muslims sometimes face the words “penumpang” and “pendatang”. Then a small number of Islamic religious speakers make derogatory statements against minorities. The latest is by Shakir Nasoha. And he is still free. 

Dewan Bahasa dan Pustaka (DBP) since early 2021 allowed only Muslims to use the word Tuhan (with a capital T) in their Malay language publications. Non-Malay writers were told to use the word tuhan (with a small t) instead. Earlier it was the “A” word. So, what’s the Rukun Negara and National Anthem all about? 

Fancy slogans do not bring us together as one nation. All the Government has to do is to treat every Malaysian equally, apply the laws of the land without fear and favour. That itself will do, without having to waste time and money on silly concepts. Or, is the Malaysian Family another way of explaining the content of George Orwell’s satire entitled ‘Animal Farm’? ‘All animals are equal but some animals are more equal than others’?

 

Source: http://www.jmm.gov.my

Reference

Malaysian Family? “Get real, cheap slogans won’t solve rising polarisation”, G Vinod, Focus Malaysia, 16 October 2021

Comment: Of Halimah and national unity, Zaid Ibrahim, Oct 17, 2021 (www.malaysiakini.com)

Is the U.S. Lagging Behind the World in Digital Currency?

According to global accounting firm PwC’s inaugural CBDC global index, which tracks various central bank-issued digital currency (CBDC) project status from research to development and production, the U.S. ranks 18th in the world. America’s efforts trail countries like Sweden, South Korea and China but also countries like the Bahamas, Ecuador, Eastern Caribbean and Turkey.

China, with its government’s hyperfocus on maintaining control and overseeing data, has been working to develop a CBDC for almost a decade.

Analysts like Harvard economics professor Kenneth Rogoff estimate that the U.S. could be at least a decade away from issuing a digital dollar backed by the Fed. In that time, the modernization of China’s financial markets and reduction or removal of its currency controls “could deal the dollar’s status a painful blow.”

China has already largely moved away from coin and paper currency; Chinese consumers have racked up more than $41 trillion in mobile transactions, according to a recent research paper from the Brookings Institution, with the lion’s share (92%) going through digital payment processors WeChat Pay and Alipay.

Not only is the U.S. running significantly behind in the development of a CBDC, it is trailing the rest of the world in digital payments broadly. Kenya, for example, has almost fully digitized its economy through its digital currency and payment system MPESA, making transactions free and almost instantaneous. India’s Unified Payments Interface (UPI) allows users to transfer money instantly between bank accounts with no cost. Brazil’s PIX facilitates the transfer of money between people and companies in up to 10 seconds. All of these programs work through and are overseen by the countries’ central banks rather than commercial banks or other private companies.

Critics argue CBDCs are simply a solution in search of a problem and potentially harmful. Many see support from the banking sector as vital to the success of a digital U.S. dollar, however commercial banks in the U.S. have taken a largely adversarial stance.

Even disruptive financial technologies like PayPal, Venmo and Zelle work through the banking system, rather than around it, thanks in large part to the banks’ power.

Central bankers also generally have concluded that commercial banks are a necessary piece of a potential CBDC ecosystem, thanks to their pre-existing regulatory guardrails and ability to move money. Top policymakers at the Fed, including influential Vice Chair for Supervision Randal Quarles, have joined the banking industry in arguing that a digital dollar “could pose significant and concrete risks” and that the potential benefits “are unclear.”

While dollar dominance has rankled much of the world for decades, there has been no suitable replacement for the U.S., with its massive economy, sophisticated banking system and sprawling international presence.

China is in the midst of a long-term push to simultaneously grow its financial markets and internationalize its currency. Both have the end goal of allowing China and its allies to limit the ability of the U.S. to enforce its will through economic sanctions.

However, the renminbi will not become the world’s reserve currency. But what China has done by being in the forefront of CBDC development is put itself in position to take the lead on development and implementation of rules and regulations for digital currencies on a global scale.

Over the past decade, digital currencies, including cryptocurrency and “stablecoins,” have sprung up like weeds. Some purport to be just as safe as dollars, but are backed by questionable assets. In a crisis regulators worry they could fluctuate wildly in value or lose their value altogether.

Having central banks, which are responsible for the printing and circulation of coins and paper money, issue digital currencies is in part a reaction to this private sector activity.

Where is Malaysia? The central bank has been keen on digital payments and online banking. Consumers remain a little reticent because of security issues. On CBDC, BNM will probably follow China or the U.S. in its development, unless ASEAN central banks come together for a common digital currency. A thought worth considering?

Source: https://www.worldfinance.com

Reference:

The U.S. is losing the global race to decide the future of money – and it could doom the almighty dollar, Dion Rabouin, September 21, 2021 (https://time.com)

Glaring Disparity : Income and House Prices

Various models can be used to determine affordability but, in Malaysia, there is no consensus on the most suitable model. There are arguments on whether housing affordability should be measured as a short- or long-term financial capacity issue or based on the city-tier system.

The most widely adopted model is the median multiple. Median multiple is median house price as a multiple of median annual household income.

Khazanah Research Institute (KRI) defines housing affordability as a function of both house prices and income, and a yardstick of “affordable” is a median multiple of 3.0 times.

“Using the median household income 2019 published by DOSM and the affordable housing range based on KRI’s calculation of 3.0 times the median multiple, affordable house prices in most states are lower than the median house price. It appears that house prices are not within the affordability of the household, except for Putrajaya and Melaka.”

Many Malaysians have complained that house prices in the country are too high. The median house price is far above the affordable housing price. Some would even argue that one can barely find a house with the aforementioned median house price, except for those in government housing schemes.

In fact, most house prices could be much higher than the median house price. Add to that other expenses such as maintenance fees, transport (public transport, car loan and petrol), food, insurance and entertainment, and one would be hard pressed to find any savings left over at the end of the month.

Take, for example, Kuala Lumpur and Selangor, which collectively have a larger population than other states, owing to urbanisation. If prospective buyer Ali were to opt for a RM470,000 property in Kuala Lumpur (as suggested in the table) and obtain a 90% loan at an interest rate of 3% for 30 years, the monthly repayment is about RM1,780.

If the property is a stratified property, he would have to pay a monthly maintenance fee and contribute to a sinking fund. There are also other fees, such as the monthly Indah Water bill, the half-yearly assessment tax and the annual quit rent/parcel rent.

In general, the maintenance fee in a condominium in Kuala Lumpur is 25 to 35 sen psf. Assuming the condo is 1,000 sq ft, at 25 sen psf, the monthly maintenance fee is RM250. That translates into a minimum monthly expense of about RM2,030 for the loan repayment and maintenance fee alone.

According to Department of Statistics Malaysia (DOSM), the current household income is gross household income and includes income payable as tax and to a social security scheme. The final disposable income varies, depending on individuals’ eligibility for different tax reliefs and other payments.

Take, for example, the case of a young, single-income household of a married couple without children in Kuala Lumpur. With the median household income of RM10,549 and no other tax deductions, the estimated monthly household income after income payable is RM9,548.

The minimum monthly expense of RM2,030 is one-quarter of the estimated monthly household income after income payable of RM9,548.

But, what can you really get in Kuala Lumpur with RM470,000? How about a property with a built-up of at least 1,000 sq ft, three bedrooms and two bathrooms? EdgeProp.my listings shows that there are many older, non-landed properties — especially apartments — priced at or below RM470,000 in various parts of KL.

As for landed properties, there are a limited number that fit the bill and they are all older townhouses as well as 1- to 2-storey terraced homes in Cheras, Kuala Lumpur, Kepong, Sri Petaling, Sentul and Wangsa Maju.

Data by DOSM and Napic suggests that between 2016 and 2019, the number of residential developments increased in tandem with household growth. During that period, about 100,000 new households were formed every year while the annual new completion of residential property was around 80,000 units.

Based on DOSM’s estimate of a population of 32.65 million in 2020, against the existing total residential housing stock of 5.84 million units and the 2019 household size of 3.9 persons, the number of living quarters required is 8.37 million units. It appears that there is a shortage in housing supply of 2.52 million units?

 In 2019, residential properties contributed almost half of the country’s property overhang, with 30,664 units valued at RM18.82 billion. Serviced apartment overhang continued to form the bulk of the property overhang, with a total of 17,142 units worth RM15.04 billion.

Nevertheless, for property consultants, property overhang does not equate to oversupply. Instead, their interpretation is that “property overhang [is] due to the mismatches of location, pricing and product”, which has to be examined from a micro perspective.

Location and product mismatches, to an extent, are more pronounced in affordable housing projects as a result of cost justification. Taking the development guidelines for affordable houses as an example, the minimum space requirement of 600 to 800 sq ft (which varies by affordable housing schemes) with three bedrooms is inadequate for long-term living by a typical four-person family. It has to be noted that KPKT [Ministry of Housing and Local Government] recently acknowledged this shortcoming and is looking to revise the guidelines.

All related parties — the government, the authorities, property developers and banks — need to work together to solve the issue of disparity between income and house prices. The government should ensure that integrated data on demand for and supply of homes — based on various factors that include income level, affordability and pricing — is available.

While property developers should carry out studies on the developments to be built, authorities also need to make sure that approvals are given only to projects that match the actual requirements and affordability. And banks have to act more prudently with feasibility studies for any bridging loan or even end-financing schemes.

Reference:

Cover story: The disparity between income and house prices, Racheal Lee, The Edge Malaysia, November 24, 2020 (https://www.theedgemarkets.com)

Did PM’s Speech Deviate From 12MP?

According to Prof. Lee Hwok Aun (of Malaysia Studies Programme at ISEAS-Yusof Ishak Institute, Singapore), the PM’s speech departed from the 12MP document in Focus Area 6. Three discrepancies stand out. The first warrants clarification, the second and third demand answers.

The speech magnifies a divisive and misleading statistical note. The Bumiputera agenda, PM asserts, must continue because “the median income gap between Bumiputeras and Chinese is widening, quadrupling in 2019 compared with the gap in 1989.”  The line is taken from the 12MP, but it is preceded by more important matters that the speech omits.

The Eleventh and Twelfth Plans have improved in specifying where pro-Bumiputera and other group-targeted programmes operate – albeit with major omissions, such as matriculation colleges and higher education, public procurement and public sector and government-linked company (GLC) employment.

The 12MP’s discussion of “key issues” faced by the Bumiputeras begins with the general problems of poverty, inequality and unemployment, followed by a list of specific problems.

A case is made of Chinese-Bumiputera household income inequality in a manner that potentially sows discord – and paints a grossly misleading picture by suggesting that inequality between the two groups is widening.

In 1989, the median Chinese household income was RM1,180 while median Bumiputera household income was RM680. The difference was RM500. In 2019, the corresponding figures were RM7,400 for Chinese households and RM5,400 for Bumiputera households. The difference was RM2,000.

The 12MP points out that this absolute difference has increased four times, which is technically correct, but this selective angle skews the perspective on the ethnic groups’ household income progress. Bumiputera household income has actually grown significantly faster: increasing by 700% between 1989 and 2019, compared to 530% for Chinese households. Proportionately, the gap has narrowed. In 1989, median Bumiputera household income was 58% that of Chinese households. By 2019, the proportion had risen to 73%.

It is also inaccurate to only report the statistics at the national level, without taking into account urban and rural differences. Rural incomes are lower; the national Bumiputera median household income is deflated with the inclusion of rural households. The non-Bumiputera population is much more urbanised; the more valid household income comparison should be between urban Bumiputeras and urban non-Bumiputeras.

In 2019, the Bumiputera to Chinese median household income ratio was 81% – a narrower gap than the 73% obtained when urban and rural populations are mixed.

The Bumiputera to Indian income ratios tell a further story. Urban Bumiputera median household income was 102% of urban Indian households (2% higher). What this means is that half of urban Bumiputera households earned less than RM6,209; while half of urban Indian households earned less than RM6,097. As usual, Indians are left behind.

The Bumiputera community has benefited from economic growth and extensive preferential policies. These statistics should in fact be grounds for enhancing the system by making it more inclusive.

The announcement of an “equity safety net framework” has provoked alarm and concern. This measure, on top of many other equity ownership programmes, supposedly ensures that “disposal of Bumiputera shares or companies [will] only be offered and sold to Bumiputera consortiums, companies or other Bumiputera individuals”.

This is a drastic step, and many would add, a problematic and perilous one. As details are absent, the basic why, what and how, is imperative for answers.

The PM’s address to Parliament also highlighted something that is not even in the 12MP. The Dana Kemakmuran Bumiputera, appearing foremost on a list of programmes for Bumiputera SMEs, is nowhere to be found except in his speech.

How will Dana Kemakmuran Bumiputera be scrutinised, debated, and monitored when it does not exist in the Plan?

PM Ismail Sabri had little time to influence the 12MP but he needs to have answers for statements that seem to be outside of the Plan. In addition, it seems the Plan is not something the political masters intend to follow-up or implement. So why Plan?

Reference:

Eyebrow-raising discrepancies between 12MP and PM’s speech, Lee Hwok Aun, Letter to the Editor, FreeMalaysiaToday, Oct 2, 2021 (https://www.freemalaysiatoday.com)

Tourism Revenue Crash in 2020!

The country's tourism receipts recorded a drop of 71.2 percent to RM52.4 billion in 2020 compared to RM182.1 billion in 2019, according to Chief Statistician Mohd Uzir Mahidin. He said 2020 is the second year that domestic tourism receipts exceeded the inbound tourism receipts with a contribution of 73.8 percent or RM38.6 billion.

“Simultaneously, outbound expenditure for last year recorded a decrease of 61.7 percent amounting to RM17.1 billion,” he said in a statement in response to the Tourism Satellite Account 2020 findings announced by the Department of Statistics Malaysia (DOSM).

Throughout 2020, Uzir said the tourism industry had generated RM199.4 billion of Gross Value Added of Tourism Industry (GVATI) by contributing 14.1 percent to the Gross Domestic Product (GDP).

Uzir said the direct tourism contribution to the national economy was severely affected, with a decrease of 72 percent, but employment in the industry declined at a lower rate of 2.9 percent as the government introduced the Salary and Wage Subsidy initiative to ensure tourism operators could retain their employees. He said overall, the tourism sector in 2020 was still able to absorb the substantial pressure from the weak demand as consumption in non-tourism activities helped moderate the effects of Covid-19 on the national economy as reflected through the performance of GVATI.

Uzir said at a global level, the World Tourism Organization (UNWTO) predicts that the tourism sector will return to pre-pandemic performance in 2024, largely driven by domestic tourism activities. And digitalisation is the way forward. Could we suspend the NEP requirements for now?

Source: https://www.studymalaysia.com

Reference:

Tourism receipts drop 71/2 pct to RM52.4b last year: Chief statistician, Bernama, September 23, 2021

What is Theft?

If it is taking away something that belongs to someone else without due consent then it is theft. But in Malaysia it is not if:

(i)        You agree to return a portion (or a substantial part) back to the aggrieved party or the Government; or

 

(ii)       It is ‘legalised’ by fiat – regulation, law, guideline, that orders the giving-up of one’s property (or asset) to somebody else with minimal or no compensation.

This is the scenario for some politicians or business interests. Unless your company is owned by the majority race, you will not have the licence or permit. You may disguise this under equity re-distribution to address an earlier inequitable situation. But it is still theft. What ‘maruah’ is this?

Idi Amin (in Uganda) tried this (acquisition or assets/businesses) in August 1972, to the detriment of the economy. Many ‘new’ African owners had no clue of how to run the business. Within six months of the ‘transfer’, the retail shops, agencies or manufacturing plants were shuttered.

Mugabe pursued redistribution of land of white farmers after independence. This was peaceful initially but turned violent after 2000. Mugabe is remembered for mismanagement, corruption, anti-white racism and crimes against humanity.

With Covid-19, the logistics companies are doing well. Delivery is really ‘hot’ business. And you have Food Panda, Grab Food, Lalamove and many other ‘moves’. Politicians can concoct the ‘Kajang Move’, ‘Sheraton Move’ or ‘Malacca Move’, but we cannot move equity from its original owner to a favoured party by Government dictat unless we license theft.

Source: https://www.thestar.com.my

What is the Pandora Papers?

The Pandora Papers investigation is the world’s largest-ever journalistic collaboration, involving more than 600 journalists from 150 media outlets in 117 countries.

The investigation is based on a leak of confidential records of 14 offshore service providers that give professional services to wealthy individuals and corporations seeking to incorporate shell companies, trusts, foundations and other entities in low- or no-tax jurisdictions. The entities enable owners to conceal their identities from the public and sometimes from regulators. Often, the providers help them open bank accounts in countries with light financial regulation.

The 2.94 terabytes of data, leaked to International Consortium of Investigative  Journalists (ICIJ) and shared with media partners around the world.

The records include an unprecedented amount of information on so-called beneficial owners of entities registered in the British Virgin Islands, Seychelles, Hong Kong, Singapore, Belize, Panama, South Dakota and other jurisdictions. They also contain information on the shareholders, directors and officers. In addition to the rich, the famous and the infamous, those exposed by the leak include people who don’t represent any public interest.

While some of the files date to the 1970s, most of those reviewed by ICIJ were created between 1996 and 2020. They cover a wide range of matters: the creation of shell companies, foundations and trusts; the use of such entities to purchase real estate, yachts, jets and life insurance; their use to make investments and to move money between bank accounts; estate planning and other inheritance issues; and the avoidance of taxes through complex financial schemes. Some documents are tied to financial crimes, including money laundering.

More than 330 politicians exposed by the leak were from more than 90 countries and territories. They used entities in secrecy jurisdictions to buy real estate, hold money in trust, own other companies and other assets, sometimes anonymously. About a dozen prominent Malaysians, including at least four active politicians, are among those named in the 12 million files making up the Pandora Papers.

The Pandora Papers investigation also reveals how banks and law firms work closely with offshore service providers to design complex corporate structures. The files show that providers don’t always know their customers, despite their legal obligation to take care not to do business with people who engage in questionable dealings.

The investigation also reports on how U.S. trust providers have taken advantage of some states’ laws that promote secrecy and help wealthy overseas clients hide wealth to avoid taxes in their home countries.

References:

Pandora Papers Leaked: Malaysia ranked 5th in the world for RM1.8 trillium outflow, https://thecoverage.my/

Some of Asia’s elite in the spotlight after leak of Pandora Papers, https://www.straitstimes.com

Wish to Live to 110?

According to a BBC report, in 2012 the United Nations estimated that there were about 316,600 people over 100 years of age who are living around the world. By 2050, that number is expected to rise to over three million. Would you not want to be one among them?

A study titled "Characteristics of 32 Supercentenarians" reports that "Data collected thus far suggest that supercentenarians markedly delay and even escape clinical expression of vascular disease toward the end of their exceptionally long lives. A surprisingly substantial proportion of these individuals were still functionally independent or required minimal assistance." Supercentenarians (SCs) are people who belong to the exclusive club of those who live to 110 or older. 

The Ageing Analytics Agency, in collaboration with the Gerontology Research Group (GRG) reports: "Lifestyle plays almost no factor in health and longevity after the age of 80." That means all those who make it to 80 then depend upon their genetic cards to carry them forth. So, making it to age 80 years is more about lifestyle factors and choices one has made in life. And they also fall back on their “super” immune systems.

So, what were the key factors contributing to longevity alongside genetics:

1.  Relationships and social inclusion: Kindness, love, and a strong sense of community are contributing factors.Longevity.Technology.com says that love really may be all you need when it comes to living longer. And of course, a “super” immune system.

2.   Socio-economic status: The study finds that higher standards of living and sanitation, availability of connectivity and communication as well as the spending on public health all have a positive impact on Longevity. Another study found that the currently available data indicate that Japan is the country with the highest number of currently alive SCs. Interestingly, Puerto Rico would show the highest prevalence of SCs among people who reach extreme longevity (EL);

3. Brain activity: A study titled "Neuropathology of supercentenarians - four autopsy case studies" found that neuropathological alterations associated with ageing were mild to moderate in the supercentenarian brain, suggesting that these individuals might have some neuroprotective factors against ageing. The Ageing Analytics Agency, in collaboration with the Gerontology Research Group (GRG) study found for the first time that neural activity is higher in individuals with shorter life spans and lower in those who live longer; 

4.  Physical activity: Those who live longer are also able to retain mobility and bodily functions longer and more efficiently. Regular exercise has significant health benefits, and could even improve symptoms of Alzheimer’s; 

5.  Healthy diet: The research team found that it is important to eat a diet rich in whole grains, vegetables, and fruits, healthy fats, calcium and vitamin D, while also taking a daily multivitamin. Filomena Taipe Mendoza, 116 years old resident of Peruvian mountains reportedly told the BBC that she has been eating a natural diet of potatoes, goat meat, sheep's milk, goat cheese and beans, cooking only items she grows from her own garden, and has never eaten processed foods; 

6. Conscientious: Those who are self-disciplined and goal-orientated live longer, as well as potentially having lower blood pressure, and less risk of psychiatric conditions, diabetes, heart and joint problems.

In their book The Longevity Project, the authors Drs Howard Friedman and Leslie Martin have cited an eight-decade-long study of 1,528 participants that was begun by Dr Lewis Terman in California in 1921. They conclude: "It was not those who took life easy, played it safe, or avoided stress who lived the longest." They explain that instead, those who live longer had "an often-complex pattern of persistence, prudence, hard work, and close involvement with friends and communities."

It is not just living longer that is important but having the quality of life as well. In other words, if you can do things independently then living longer has its benefits. Otherwise, it becomes a burden on the family, community and nation. We could see living longer to 150 as feasible with technology improving and replacing body parts that are no longer functioning well.

Enjoy life at whatever age you are in and give thanks to your Creator!

Source: https://www.nytimes.com

Reference:

Wish to live to be 110 or older? Checklist of things you should be doing as shown by longevity study, Kirti Pandey, September 4, 2021 (https://www.timesnownews.com)