With the official launching of AEC in December last year, the regional grouping became a single common market and production base which will lead to the free flow of goods, services, investment capital and skilled labour.

“We still need foreign talents… but at the same time we really look after our local experts also,” said Dato Paduka Lim Jock Hoi, permanent secretary (Trade) at the Ministry of Foreign Affairs and Trade (MoFAT) on the sidelines of the ministry’s outreach programme on AEC and Trans-Pacific Partnership (TPP) yesterday.

The Asean bloc has established its mutual recognition arrangements (MRAs) aimed at making it easier for eight skilled professionals to work in other Asean member states.

The professional workers include doctors, dentists, nurses, architects, engineers, accountants, surveyors and tourism professionals.

MRAs are a major instrument for skilled labour mobility in Asean.

Dato Lim said that there is a need to satisfy the local requirements or regulations in a country before the foreign talents can start working.

“We have the mutual recognition arrangements in many services sector among members of Asean but this does not imply that they (foreign skilled professionals) can come in without satisfying the local conditions, (or) the local regulations, which is very important,” he said.

Giving example, he said that foreign doctors who wish to work in the Sultanate need to be registered in the Brunei Medical Council and they have to register to the professional standards.

These are among other regulations that will be imposed by the Asean member states, otherwise it will be difficult to manage the professional mobility in the regional grouping, he added.

He said that foreign talents have to fulfill certain criteria of the local regulations.

Asean member states, including Brunei, launched the AEC at the end of last year, achieving a milestone in the bloc’s regional economic integration agenda that offers opportunities in the form of a market of US$2.6 trillion ($3.5 trillion) with over 622 million people.

Generally, China is now seen as the forerunner in the race for this anticipated project, which could cost 70 billion ringgit and spur economic activities in all the towns that the fast speed train have stations.

Last November, China General Nuclear Power Corp paid US$2.3 billion to acquire 1MDB’s power assets in Edra Global Energy Bhd.

This has saved the embattled 1MDB, whose advisory board chairman is Prime Minister Najib Razak, from its 42 billion ringgit debt crisis. Since October 2014, 1MDB’s debt troubles had weighed on Malaysia’s sovereign credit rating. Moody’s Ratings recently said 1MDB is no longer a concern.

In December, China Railway Construction Corp Ltd (CRCC) – one of the largest construction giants in the world, teamed up with Ekovest Bhd to buy a 60 per cent stake in 1MDB’s Bandar Malaysia for US$1.7 billion. Bandar Malaysia, a mixed-property project on a 196.7ha site, will host terminals for the HSR project.

And just two weeks ago, China Railway Engineering Corporation (CREC) – which is keen to bid for the HSR project – announced in Kuala Lumpur that it would invest $2 billion to build its regional centre in Bandar Malaysia.

CREC, the parent company of Hong Kong and Shanghai listed CRCC, also promised to bring in more Chinese investments into Malaysia. These recent favourable developments for Malaysia has convinced most market observers that China is likely to win the HSR project or be involved in some ways, overtaking Japan and other Western competitors.

“On the investment and political fronts, China has made inroads and many think it is the frontrunner for the HSR project. But it is premature to say who will get it now as the joint venture company to own and manage the HSR project has not been set up yet,” says Goh Bok Yen, a well-known transportation planning consultant.

The governments of Malaysia and Singapore are expected to finalise the commercial model and procurement approach of the project by this year. The HSR, starting at Bandar Malaysia, will have intermediate stations at Seremban, Ayer Keroh, Muar, Batu Pahat and Nusajaya, before ending in Singapore at Jurong East.

“Today, due to the fast development of new technology, nobody dares confidently say whose system is better. Even if the Chinese do not get the whole project, they have already gotten the terminal and with that kind of investment, they may be given participation in the supply of rolling stocks like locomotives and coaches,” adds Goh in a telephone interview with Sunday Star.

Indeed, China has already gained a favourable spot at the conceptual stage when the cost of the HSR was estimated at 40 billion ringgit. The world’s second largest economy pledged full-scale financing for the whole project and this augured well for the project during the economic slowdown.

Another advantage China has over its competitors from Japan, France and other Western players is that China has the experience of working with Malaysia on the latter’s KTM and LRT rail lines. It has supplied about 75 per cent to 80 per cent of the locomotives and coaches and related equipment to Malaysia, from its manufacturing plant in Malaysia.

On the ground, China is being favoured by many Chinese Malaysian-owned firms – which are eyeing lucrative projects in the One Belt-One Road regional economic initiative of China.

Indeed, Kinsteel Bhd’s Tan Sri Pheng Yin Huah, who is also president of Hua Zong that groups all Chinese guilds in Malaysia, has openly urged the Government to give the HSR job to China. Several other trade leaders have followed suit.

Some business leaders, such as Malaysia-China Chamber of Commerce president Datuk Bong Hon Liong, see spillovers into other areas of economic cooperation with Beijing if the HSR project is awarded to China.

China has been Malaysia’s largest trading partner since 2009. According to the Chinese’s official data, which took into account Malaysia’s indirect exports to China via Singapore and Hong Kong, total bilateral trade in 2014 exceeded 400 billion ringgit – with balance of trade heavily skewed towards Malaysia’s favour.

In recent years, Malaysia’s robust tourism has also relied heavily on tourist dollars from China. After a plunge of Chinese tourist arrivals in 2014 and 2015 caused by two plane disasters in 2014, the Chinese are now returning to Malaysia with a vengeance.

Although many people believe that Malaysia might return the favour to China for throwing a lifeline to 1MDB, Goh notes that Malaysia will have to take the views of Singapore into consideration as the republic will be an important stakeholder.

“Singapore culture is very different. They are very independent and professional in their approach and assessment,” says Goh, noting there is a firm commitment by two governments to invite open tenders once all details are hammered out.

According to individuals who have communicated with rail consultants in Singapore, advisers to the Singapore Government are not leaning towards China.

Rightly or wrongly, China’s rail system and engineering technology has given the perception that it is not as safe as Japan and the West.

This is partly due to the much shorter history of fast train development in China but mainly because of several rail mishaps that had occurred several years ago.

News that a crash in Wenzhou in 2011 killed 40 people and injured 190 others has not faded from the people’s memory.

The negative perception of China’s fast rail system is made worse by the recent problems China had encountered in Thailand and Indonesia.

According to Bangkok Post on March 24, Thai government has decided to wholly invest in the Thai-Sino fast-to-medium train project after it failed to agree with China on some crucial terms that have set back progress for months.

According to Jakarta Post, the signing of an agreement on the development of the China-funded high-speed Jakarta-Bandung rail project between the government and PT Kereta Cepat Indonesia China (KCIC) was delayed to March 17 after several allegations against KCIC. Construction of the project had been suspended for two months after the groundbreaking in January.

But Goh says China has to be judged in the right perspective. It only rolled out its first high speed train in 2003 and in the early stages, there were bound to be hiccups.

“If you look at the number of accidents involved, China may be high. But if you look at the accidents per million train-km, it may not be high and is lower than many other countries,” Goh states.

But so far, China has not been proactive or even responsive to correct the perception on safety.

The CERC has not replied to Sunday Star’s emails on safety concerns. However, China is inviting journalists to experience China’s rail ride in mid-April and to brief them on its rail development.

In fact, China can now boast the fastest high speed railway development in the world. Its nine bullet rail systems covered total rail line distance of 19,000km in 2015, accounting for 60 per cent of the world’s total line distance.

Goh remarks: “China started rail modernisation and high speed train development only about 15 years ago. But its speed of development and implementation is incredibly high. Competitors can say anything about China, but look at this country, it has far more tracks and rail systems than all other countries combined in the world.

“They picked up from the middle road, they picked up new technology, did their own research and development (R&D) and modernised the technology acquired.”

Indeed, China has made it known that it has studied the technologies of Germany, France and Japan – countries known for their superior rail engineering and systems – before developing its own HSR technology and systems.

“Due to China’s R&D on major train projects and super lengthy tracks, China has developed the most cost-effective rail system in the world that nobody can compete with,” says Goh.

In fact, Sunday Star learns that one of Malaysia’s top decision makers who have been to China several times to study its rail system is impressed by China’s rail construction and engineering work.

In China’s first ever rail exhibition held in Kuala Lumpur held in mid- December 2015, Malaysians were impressed with China’s extensive experience in HSR construction and operation under different geological and weather conditions, and its ability to develop a complete technology system for high speed railway.

The exhibits had given emphasis on how safe and reliable the Chinese system is. One of the safety assuran­ces highlighted was that China has developed a 400km/h comprehensive inspection train for real-time inspection of the track, communication, traction and power supply system of high speed railway.

But in terms of public image and media relations, China is lagging behind its regional rival Japan.

Japan took Malaysian media for a bullet train ride and a briefing on its technology last year. The trip left many impressed with its superb technology, safety measures and track record. Japan has a head start in high speed rail projects, rolling out the first Shinkansen (bullet train) passenger service in 1964.

“On the media front, Japan has won a battle over China. But on local sentiment and political fronts, it has lost out to China,” observes Goh.

But an independent engineer in Malaysia still sees China in a favourable light. He notes that China’s HSR train technology has evolved from Japan, Germany and France.

“There’re several mishaps of its trains in China due to new start up and technical glitches but China has been able to rectify the defects. After all the learning curves, China is able to manufacture at a cheaper cost. In addition, they may win HSR train contract in Malaysia due to cost factors, providing financing loan and inter-governmental diplomacy,” said the senior engineer.

He notes that Malaysia and China are enjoying the closest ties since they began diplomatic ties in 1974. Kuala Lumpur, which has maintained a cool gesture towards China’s occupation of disputed islands in South China seas, is viewed by China as its best friend among Southeast Asian nations.

Hence, it is no surprise that China is extending hands to help Malaysia overcome the current economic slowdown and the 1MDB crisis.

But for Malaysians and Singaporeans who will be the frequent riders of the future speed train, safety and reliability of the HSR must be given priority.

“Safety cannot be compromised. Malaysia now needs to set up a good expert team to look into all systems. It also needs an independent assessment team to give professional advice to the government, without political and sentiment considerations,” says Goh.

These are the problems that the People’s Association (PA) hopes to resolve through its Seniors for Smart Nation programme which it launched on Wednesday at Kolam Ayer Community Centre (CC).

Seniors can look forward to attending 25 different Smart Nation classes, which will be available across 31 CCs islandwide, including those at Ang Mo Kio, Aljunied and Bedok.

More than 1,000 seniors attended the launch to get a taste of the lessons by going to different booths, trying on virtual reality (VR) goggles and playing with tablet applications.

“Everything is interesting,” said Madam Yeo Kim Bee, 68, in Mandarin. “The important thing is to be able to talk with my children and grandchildren.”

The 25 courses under the Seniors for Smart Nation programme will fall under four themes: I-Connect, I-Lifestyle, I-Inno and I-Office. These courses range from the basics, like learning to use Facebook and Skype, to teaching seniors how to set up their own web business. They are priced at $10 for seniors, and can be paid for using SkillsFuture credits.

“They must feel comfortable in the use of ICT devices to take advantage of the services, which is why this is a good start by PA, to get them acclimatised to the Smart Nation environment,” said Minister for Communications and Information Yaacob Ibrahim.

PA Chief Executive Director, BBM, Ang Hak Seng added: “As the country moves towards becoming a Smart Nation, we want to make sure we bring the senior citizens along with us.”

It’s the largest meeting of the Asian silk trade ever to be held in the central region with the participation of Vietnam and the world’s most famous silk centres.

“It’s a great opportunity for silk manufacturers, producers, exporters and importers, designers, intermediaries, and government agencies related to silk promotion to share experiences for the future development of the silk trade,” said Chairman of the Asia Silk Alliance, Dilip Barooah.

“The festival also opens up chances for silk centres in Asia and the world by building up connections in production and export,” he said.

He added that the Vietnam-Asia Silk Festival was held with an aim of promoting the silk trades of China, Thailand, Laos, Cambodia, Japan, Myanmar and Vietnam.

He said the festival was a great opportunity that had taken him to the peaceful and beautiful ancient city of Hoi An.

The Director of the Hangzhou Silk Culture and Brand Research Centre, Fei Jianming, expressed thanks to government authorities of Quang Nam Province and Hoi An City for their strong support in hosting the festival.

He said the event would help connect world silk centres and Hoi An, as well as boosting chances of co-operation among silk producers and exporters world-widetraders worldwide.

Chairman of Kyoto Silk Association, Takao Watanabe, said he hoped the silk trade would develop quickly in coming years to become the prosperous industry that was seen over 500 years ago.

The two-day festival will also see a fashion show, a seminar on silk history and development with presentations and discussions on improving silk productivityyield, silk branding and marketing, silk export development, and silk standards, certification and regulations.

The festival also includes displays from elegant French fashion designers, Myanmar silk with special patterns, Cashmere silk from India, Nanchong Yinhai silk and Hangzhou Jiahe silk textiles from China, and silks from Nishijin, Japan.

The famous silk villages of Van Phuc, Nha Xa, Phung Xa, Ma Chau, Tan Chau My Nghiep and Bao Loc of Vietnam will also be represented.

Last year, Hoi An Silk Village represented Vietnam and joined the Asia Silk Alliance as one of seven founding members with responsibility for linking Vietnamese silk enterprises with the wider Asian silk community.

The silk village, located at 28 Nguyen Tat Thanh Street in Hoi An, is a silk-weaving centre and a living museum of the ancient trade in the central region.

It was voted the third best attraction in Hoi by travel website TripAdvisor in 2014.

The two-hectare area cultivates 40 strains of mulberry, whose leaves are feed for silk worms, including some that the former rulers of the area, the ChamChampa kingdom, used to produce their best quality silk.

SEC Chair Teresita Herbosa, also cochair of the Anti-Money Laundering Council (AMLC), on Thursday agreed with the proposal of the Foundation for Economic Freedom (FEF) that the implementation of a biometrics-based national ID system would prevent the easy creation of fictitious accounts as what had happened to the case of the recent $81-million money-laundering case via the Jupiter branch of Rizal Commercial Banking Corp. (RCBC).

Together with sound bank practices, such as the know-your-client rule, a biometrics-based national ID system could be used as an additional safeguard to prevent money laundering in banks and other financial institutions, FEF said.

Herbosa said she was advocating the implementation of a national ID system, which however would need a separate legislation.

No national system

Although the Commission on Elections has adopted a biometrics-based ID system, the country has yet to institutionalize a national ID system. Human rights advocates and militant groups fear that the introduction of such an ID system would violate a citizen’s right to privacy and would be prone to abuse by the state.

Herbosa, who also chairs Credit Information Corp. that operates a national credit registry, said, “Theoretically, each Filipino should have an account there that would show credit history but the fact that we don’t have a national ID system compelled us four years ago to guarantee or at least to be sure to get a system that will merge data subjects.”

At present, she said it was difficult to merge data on people who may end up using different names when they borrow from different institutions.

“If you had a national ID system, all you have to do is put in your number and right there we know that all those loans belong to you. So it’s really much easier for tracking and all,” she said in interview at the Philippine Dealing System.

In the United States, Herbosa said there was no national ID system as well but its Social Security System assigned ID numbers to all, even to minors.

Many unbanked people

“For us, we really don’t have any and [there are] so many unbanked [people]—almost 80 percent. For me, it’s really a pressing need to be really able to identify each and every person—whether adult, minor or newly born baby—for availment of government services… It’s imperative,” she said.

FEF has also argued that a biometrics-based national ID system could help in the targeted delivery of public assistance and in the promotion of financial inclusion.

Herbosa earlier called for the easing of the bank secrecy law and the strengthening of AMLC’s mandate to combat money laundering. Apart from the inclusion of casinos, real estate and art dealers among the institutions covered by the antimoney laundering law, Herbosa said the body would need authority to look into and immediately freeze suspicious bank accounts.

At present, AMLC needs to ask for an order from the Court of Appeals to be able to freeze suspicious transactions. In the case of the $81-million stolen money from the central bank of Bangladesh that slipped into the country, bank accounts used for money laundering along with related accounts were frozen only by March 1 or almost a month after the dirty money had been wired to the bank accounts at RCBC.

The $81-million remittance from Bangladesh came in on Feb. 5 and was reported as “fraudulent” by Feb. 9.

Error in judgment

Herbosa said the money had shown how people on the ground should be more vigilant, citing some “error in judgment” in the RCBC case.

“So, it’s really your frontline people who should be able to discern whether an STR (suspicious transaction report) should be filed. Any covered person or institution should really try and strengthen the ones who deal with the potential offender or money launderer,” Herbosa said.

Even in international meetings, Herbosa said the best formula would really be the strict enforcement of the rules along with trying to change people’s attitude.

“I don’t want to say there must be distrust all the time. But if you’re there and you’re part of any institution that’s part of the Amla (Anti-Money Laundering Act), you should be mindful and try to look at all circumstances and make a decision on how you will act.

“If you’re not mindful, all these things will go past by you and when you look at it, realize how come your intuition failed and you didn’t realize where it’s going. If it’s just always hindsight (that you rely on), that’s bad,” the SEC chief said.

Reforms at RCBC

RCBC, the bank at the center of the $81-million money laundering controversy, has announced new measures to guard against money laundering.

“Down the road, RCBC intends to implement best practice policies and procedures gained from international institutions for rigorous strengthening of compliance with antimoney laundering measures. This is meant to comply with all regulations while continuing to protect the interest of customer accounts,” the bank said.

For instance, RCBC has reduced its straight-through processing threshold amount for both inward and outward remittances. Previously, only amounts in excess of P1 billion or its US dollar equivalent would be brought to the attention of senior management while people on the ground were given authority to decide on small amounts.

New threshold amounts have been established for corporate and individual accounts but these were not disclosed.

In addition, RCBC has also increased the frequency of after-posting reviews. “There will be greater focus on unusual transactions, which will be escalated to the group head via separate and frequent operations reports. Further, activities are also being programmed to ensure early and timely tracking and action on any suspicious transaction, with controls in place for higher level action,” the bank said.

RCBC said it had also taken action on strengthening the account opening process. All in-branch account opening will be signed by two officers, each reporting to different units of the bank.

Photos will be taken of walk-in clients, who are opening accounts. Unusual transactions will be escalated to the regional and/or national higher level officers for independent verification. All know-your-customer procedures are also being reviewed for strengthening.

“These are immediate steps that are being implemented with even more studies to be made and activated in the next months to ensure compliance and protect customer accounts,” RCBC said.