Daily commentary on Asian business strategy, management, market research, marketing tips, business prospects, economic and culture news. Market prospects. Economic prospects. Short reviews, links, advice, satire and topical coverage for international and Asian managers doing business in Asia.

The Hari Ini column is available daily on the Asian Business Strategy & Street Intelligence Ezine home page. Sure.. go there now for more of the same. At least it's fresher...

This page contains one month of the archives.

The Hari Ini column documents off-the cuff comments, very odd spots, unsubstantiated rumours, misinterpretations, cruel innuendo, limp jokes, dodgy links, tips lacking in credibility, and other material very roughly related to Asian business, marketing, management, culture, politics, economics and why the earth is round.

Some of the items emerge into sections later on; some are contributed by email or word of mouth by friends of the forum, columnists, editorial advisors, and the Chao Phraya River Rat. ..Most of it just ends up here...

Basically it means we can at least comment on happenings that we wouldn't otherwise have the time to.

"Hari Ini" means "Today" in both Malaysian and Indonesian.

..Which means that everything on this page is already outta date...

As the masthead suggests, this column also includes all the news that doesn't fit..

It also means we can add some lightheartedness and CNN type shallowness to our otherwise more serious content. As CNN proves, such content sells...

Mostly the column just reflects the mood of the editors on the day, and gives a potted summary of key issues in the region. If you want it to reflect your mood as well, email us contributions at chiyo@apmforum.com.

Chiyo Hyiuiki (Webmaster, and on behalf of the editors)

Singapore: Sunday July 29 2001

The Koizumi-led LDP scored a significant victory in Japan's Upper House (the Diet) over the weekend, but the Nikkei is heading South this Monday by almost 2% in late afternoon Japan time. The Yen is also down more than one Yen. Good news is that Koizumi has a further mandate for his reforms, (the details which remain unknown even at this stage). Bad news is that the old guard of the LDP, with a culture of feting traditional Japanese business and protectionism, have breathing space now to re-establish their influence internally. It's a brave man who predicts the pace of Japanese recovery at this time.

As Singapore heads for its upcoming election, no-one expects any result other than a clear mandate for the ruling Singapore PAP party to continue to govern. Singapore weathered the Asian crisis much better than others, due to its tradition of excellence in strategic and contingency planning set in motion many years before the crisis, high levels of education, and the highest transparency and lowest corruption ratings world wide.

Singaporeans are among the most prosperous worldwide, inequalities are narrowing, and it boasts a bustling multi-cultural working environment originating from the government's embracing rather than discouragement of foreign expertise. While Singapore moved dramatically into recession this month, few Singaporeans expect this to be a significant event, though some short term pain is expected.

With far more sensational and spicy politics in neighbouring Malaysia and Indonesia spoon-fed by their governments to the "whores of the press", as Frank Sinatra put it somewhat impolitely years back, the world spotlight on Singapore regarding personal freedom has been switched off for a while. Yet pressure on local Internet Web sites to tone down criticism and debate has been upped in this pre-election period, the local Sintercom.Org website being the latest example. Local sites that touch on politics must register with the Singapore government, with the Webmaster being made responsible for content. Sintercom, primarily a chat site for educated professionals, will have to moderate each and every posting for politically insensitive material.

Far better, we think, for the Singapore government to continue it's highly successful policy of the past 5 years, of favouring the publication of well written government sites, rather than censoring others.

Rumours that new Indonesian President Megawati Sukarnoputri is considering re-installing the Information Act swept Jakarta last week. Repealed by the two previous post-Soeharto Presidents Habibbie and Wahid, it resulting in a newly empowered and sometimes muckraking press. Indeed the Indonesia press showed their gratitude to Wahid, by becoming a major factor in his fall by reporting fairly unsubstantiated reports of his corruption and giving little space to the many rejoinders. Reportedly supported by all five major parties in the National Assembly, Megawati is keenly aware of how useful a compliant press is to the ruling parties of her compatriot national leaders in Singapore, Malaysia, Myanmar (Burma), Vietnam, and China. In countries that can boast a free press like Japan, the Philippines, and Thailand, most national leaders wish they didn't.

They call it Stormy Monday: Naivety reigns supreme in analyses of Indonesia from both local and international sources both leading up to and subsequent to the dumping of Wahid and the installation of Megawati. We have not changed our view published in May's Hari Ini, that Megawati Sukarnoputri's presidency may yet be another case of a lamb being led to slaughter. While the sight of the massive Assembly Hall comprising hundreds of elected officials from all over this great archipelago debating in detail aspects of the impeachment act is impressive, the real movers behind decision making in Indonesia played their very different cards.

The Speaker of the Assembly Amien Rais, in this case playing an objective and in management speak - "group facilitator" role, remains an enigma, clearly the key mover against Wahid in the past 18 months, and a man who has tempered his ambition in favour of waiting for "when the time is right". Rais' public statements on his views of a future Indonesia waver substantially, including a far less moderate form of State Islam than Indonesia is used to, anti-foreigner sentiments ala Mahathir and Thaksin, and just plain common sense.

Tuesday's just as bad: Meanwhile, just a few days after Megawati's installation, the justice who sentenced Tommy Soeharto was gunned down by motorcycle assassins.

All goes to show that it is much safer in today's Indonesia, and indeed many other Asian nations, to work surreptitiously and invisibly in the background than out front. The real power brokers in Indonesia are finding bunkering in, but throwing out significant warning grenades, the best policy. Indeed in one neighbouring country, most politicians are very aware that commitment to public service and politics carries a significant risk of ending up riddled with bullets or in the other big house. It does take courage to be a pollie in South East Asia just now.

As far as the Press goes, Wahid's parting comments as he departed for surgery in the US may well come back to haunt them - that Indonesia will start reverting back to dictatorship from newly found democracy. There is significant opinion that reform has progressed too fast in Indonesia, and that this is one of the core reasons behind moribund economic progress.

Beware analysts repeating the mantra that Indonesia is a good investment market "because things can't get any worse". Things will get better, but not before they get worse, and not because of any perceived progress in politics. As we have advised before, it is a good time to get back to Indonesia, cultivate friends and contacts broadly, but most importantly listen a lot. The rewards are still a long way off, but they will be there...

Kuala Lumpur Malaysia: Monday July 23rd 2001

News Flash 6:50pm Jakarta: Megawati Sukarnoputri has been sworn in as President of Indonesia and Abdurrahman Wahid sacked by the National Assembly. See breaking news sources below.

Megawati Sukarnoputri looks set to become President of Indonesia in a few hours as impeachment hearings on present President Abdurrahman Wahid get underway at 8am Monday. Indeed, she may already be installed as you read this.

Wahid's refusal to address the hearing means he can be sacked by the Assembly. In response, Wahid declared a state of emergency this morning, but Army and Police chiefs are backing the People's Consultative Assembly. In a meeting over the weekend, all parties apart from Wahid's own, agreed to support Megawati as president. At present the streets of Jakarta are quiet.

So what has changed in Indonesia, over less than two years, that a woman the great majority of power brokers refused to accept as President, despite leading by far the most popularly supported party in the past election, is now being welcomed as President? Simply, Wahid was expected to just keep the ship afloat, not to make controversial decisions and work with the real power brokers in Soeharto's Golkar Party, and Amien Rais' National Mandate Party, giving the key parties time to re-group.

Megawati's PDIP-Struggle though winning popular support was seen as a precocious upstart whose influence was based mainly on anti-establishment, anti-Soeharto rhetoric. Wahid was a compromise candidate, that to those who elevated him to power did little to compromise himself. Wahid governed in his own individualistic way, and his tight inner circle allowed limited access to the President. Golkar and the NMP hope that Megawati will be more compromising, and have forgiven her gender and less than pure Muslim credentials, and lost their elite fear of her populist and grass roots party. The holy man is being dispatched - the victim of an unholy rojak of political ambition and expediency.

Can Megawati, a woman who retires rather than fronts-up to the limelight, a daughter of the Sukarno palace, but proven for her courage in standing up to Soeharto, move the political agenda further than petty jostling for power? Friends of the APMF in Jakarta, Surabaya, and Bali tell us that people are sick and tired of politics and that most business people in Indonesia are just moving ahead regardless of the dirty tricks and manoeuvring in Jakarta. As far as politics go, they say, it is unpredictable and the best they can do is just watch and pray. Follow the news from the Jakarta Post and Tempo Websites. Also try our Asian Business News feeds and the Asian Business News Portal for analysis.

Raoul from Manila, always snooping around, writes..

In the rich vs. poor and damn the appearances category, the Arroyo administration's rhetoric doesn't quite match its actions. Hanging around the lobby of a certain Makati 5-star hotel the other day I perchanced upon a well-known government official being interviewed by a local television station. This particular Secretary heads an important department and is known to be one of GMA's faves. She went on and on about the need for the "painful belt-tightening" that will be required in the public sector to deal with the current near-crisis (a point well taken given that the National Treasury is being sucked dry by the costly Mindanao operations), and concluded by reinforcing the administration's commitment to "effective anti-poverty programs." She looked appropriately grim and concerned. Only problem was that the backdrop featured kowtowing flunkies, a glittering chandelier, and Manila's finest, most elegant spiral staircase. After the interview, she joined a dozen or so government colleagues for a sumptuous repast prepared by a French chef, replete with caviar, lobster, and such. After dining in style, she was whisked away in the night in her bullet-proof Benz to her home in Forbes Park, escorted by four motorcycle cops. Belt-tightening?

Maybe Raoul, maybe... Well at least for us, we're off for chicken rice at the street hawker on Jalan Ampang...

Kuala Lumpur Malaysia: Friday July 20th 2001

A clock-led recovery: Thailand is considering setting it's clocks forward one hour in line with stronger South East Asian economies like Singapore and Malaysia. This would mean Thailand is eight hours ahead of GMT, along with China and Hong Kong, Taiwan, West Australia, Singapore and Malaysia. Malaysia set it's clocks forward a decade or so back. Thai PM Thaksin Shinawatra is hoping it will rub off. "You have to admit that these countries have stronger economies".. was the somewhat "grasping at straws and hopeful" comment.

We don't think it will happen "any time soon". - (Egads! There we go trying to sound like CNN and CNBC again!) There's the small matter of letting 65,000,000 people know, many in the country areas with substantial illiteracy. Thaipusm Buddhist religious rituals must be conducted at precise times, and hell hath no fury if someone misses an auspicious date by one hour. Still one hour wont make much difference. According to the Thai calendar Thais are already way into the 21st century and several 100,000 hours ahead of Christendom.

Ex-Malaysian Finance minister Daim, who resigned earlier this month with nary a statement from the good man himself nor his boss Prime Minister Mahathir Mohamad, is now almost the forgotten man of Malaysian politics. Yet still waters run deep.

Word from the street is that though no-one knows what influence Mahathir had in his dismissal, he wasn't exactly crying into his cup of teh. Most allegations of cronyism against the Malaysian government revolved around the millionaire businessman-turned-pollie and his cronies. Credited for saving Malaysia from an earlier penultimate market crash, Daim was hoisted back into cabinet as the 1990's crisis bit, to shore up the Mahathir faction's stocks against the Anwar faction. After Anwar was "neutralised", bail-out after bail-out and contract after contract, the Malaysian man in the street became more suspicious that Daim's élite corps were getting "Most Favoured Status" in the new "stand alone" Malaysia. A few weeks ago, rumours abounded that Daim was about to be the subject of criminal proceedings, though that was denied instantly by Mahathir himself. Yet the departure of Daim has given Mahathir's reform agenda within his UMNO party a much needed shot of credibility. Latest exclusive from one of our usually very credible sources is that Daim has been hanging around influential non-government circles making discreet inquiries on emigration and off-shore investment procedures.

And still on Malaysia, the latest decision by Singapore monetary authorities to cease supporting a slow consistent rise in the Singapore dollar vis a vis the greenback resulting in a drift downwards, has put further pressure on Malaysia to revise their peg downwards to the US dollar. Currently at 3.8 to the US dollar, the Malaysian ringgit is overvalued against almost all Asian currencies, making exports less competitive, and imports cheaper. Fair value would be around 4.2 RM, or even more. A local investment research company is bringing forward yet again the likelihood of a Ringgit re-peg in the near future, despite government claims that a re-peg is a low priority repeated several times at the time of the last spate of rumours a couple of months back. They also advise against investing in the Kuala Lumpur Stock Exchange, which has seen considerable gains in the past month against the predominant downward trends in Singapore and North East Asia, on the basis that much is speculative buying. On the basis of Singapore events, probable speculation in Palm Oil Futures, and the Argentinian crisis, Malaysian economic direction is difficult to predict and Malaysia a risky investment just for now as a re-peg would have substantial positive and negative effects on many industries.

Both the top levels of government and the Malaysian Institute of Economic Research have played down the likelihood of Malaysia following Singapore into recession, due to their claim that Malaysia has a more broad based economy than Singapore, and less reliant on exports, a major fall in which was a main trigger for the Singapore recession. At the same time however, the Institute reduced the GDP growth forecast to 2.2% from 4% last April, and 5% in December. The Malaysian government now estimates it's growth estimate at 5-6% (set in March) from 7% estimates previously. According to MIER director Mohamed Ariff, the US accounts for 21% and Japan 13% of all Malaysian exports, both of which are in the economic doldrums.

Meetings went long into the early hours today, as Indonesian President Abdurrahman Wahid, Megawati Sukarnoputri, plus the brawling power-hungry political élite that really runs Indonesian politics got down to the business of saving face, pumping out chests and pointing fingers. Wahid has been beat into a corner by lack of support from the Army and Police, and postponed his threat to declare a State of Emergency today to 31st July. In most countries the actions of cheifs of these arms of government would be seen as treason. The police cheif Wahid sacked, and who refuses to go, is himself not a corruptionless cleanskin. In Indonesia, it reflects where the real base of political power lies - a legacy of Soeharto's empowered power bases.

Yet, what is missed by many local and international analyses of current events is that the lack of progress in Indonesia is due to far more than the failings of one man. A less than optimal constitution, and an unwillingness of politicians to take on the massive job of re-building a critically-ill Indonesia and instead hand it to a compromise candidate while each faction regrouped. Indonesia suffers no differently than other nations that have for years depended on autocratic or charismatic leadership. Such leadership nurtures a culture of leaving decisions to others, to leave it to the Army, the police, and a "benevolent dictator". The skills of participative decision making, teamwork and collective responsibility are never given the fertile soil in which to bloom. It leads to negativity, alienation, a "me-too" and a "blaming others" culture.

Until we can stop blaming personalities and move to addressing the real causes of malaise in organizations, whether they be on the business, political or even national level, real progress and change will be held back.

Kuala Lumpur Malaysia: Monday July 15th 2001

It was expected, but a relief. China celebrated yesterday as the IOF announced that Beijing would be the host of the 2008 Olympic Games. And Beijing won by a major margin - well over the 2 votes it lost to "Si-di-ney" four years ago. Not only is it a symbol of China's rise to influence over the past decade, and the best chance ever for exposure and image-building, but Chinese businessmen are on top of the world with the amount of business the Olympics will bring in. Preparation of venues, advertising and promotion, management contracts, - all are in the offing. Meanwhile, the Chinese leaders will be rattling the patriotism can as hard as they can.

Our Toronto correspondant, Dave Keenan also got it right.. Beijing (almost a shoe-in, he said), followed by Toronto, which basically sabotaged it's bid with the mayor'r remark that if he visited Africa he would feel like being boiled in a pot surrounded by dancing natives.., Paris, and finally Instanbul and Osaka, the latter two which didn't meet the technical requirements anyway.

For a quick tour of Greater China try the South China Morning Post's interactive China map, with profiles of the 20 major cities on mainland China. If you need a good introduction to the massive country that is China, this is a great place to start.

The Triumph and Crisis of Leadership: Today, Prime Minister of Malaysia Dr Mahathir Mohamad celebrates 20 years in power, making him the only national leader that over half of the Malaysian population have ever known. During a career that has seen him imprisoned, become world spokesman for the South and Islamic nations, and the creation and implementation of a strategic plan that has brought Malaysia from under-developed to almost developed country status, this enormously dedicated, proud, courageous and energetic leader personifies modern-day Malaysia.

There is no end in sight for his rule, and most predict he will die in office. Yet, this enormous achievement of one man also underlies an even greater challenge for Malaysia - that of turning Malaysia from a one man show into a country that is truly ruled by the people. There is no-one strong enough in Mahathir's UMNO to challenge him, and indeed even in the ruling Barisan Nasional government, to challenge Mahathir publicly is to be accused of being anti-Malaysian, such are the skills of Mahathir in making Malaysia synonymous with his name.

Mahathir is a true pragmatist in knowing when a relationship is useful, and when it has passed it's time. He has groomed three deputies for leadership, but all were sacked, demoted, or lost patronage when they became a real challenge or inconsequential. Recently resigned Finance Minister Daim was brought in by Mahathir twice to "save Malaysia", only to be pushed aside when he became a liability.

Indeed, one of Mahathir's sons owns an advertising agency and whether dad learned it from son, or the other way around, the same skills used by advertising agencies have been implemented by Mahathir masterfully. Repeating of the same simple message in different ways, the use of the great motivators of fear, external threats, aspiration and identification, accentuating the positive, and talking to the punters in their own style and language are just some of them.

During focus groups held in over 20 countries, the brief often calls upon the Orient Pacific Century market research group to ask what images are associated with country names. Some countries are associated with product classes - for example Germany is often associated with cars, and France is often associated with wine. Some are associated with other images - America for example with democracy and modernity, and Australia with wildlife like kangaroos and natural attractions like beaches. Thailand is associated with temples and exotica. But the only country that is associated at the highest level with a person is Malaysia. Mahathir is the most frequently mentioned image of Malaysia (and by a long way) by many focus group participants world wide.

While we congratulate Dr Mahathir on his success and selfless devotion to his cause, we also look forward to the day when the country is less recognised for one man, but for the strengths in diversity that Malaysian business and society really represents.

Kuala Lumpur Malaysia: Thursday July 12th 2001

Chinese leaders yesterday announced that foreign-funded companies will be allowed to sell shares to local investors, in a move certain to provide a boost to the emerging local markets.

Australia stepped in early today to buy Australian dollars in an effort to stem the fall in the Ozzie towards 0.5 to the US dollar, following a fall in employment figures announced the same day.

This Friday 13th is announcement day for the host of the 2008 Olympics. Beijing, a favourite which missed out for the 2000 Games which eventually went to Sydney Australia, is a strong candidate along with Istanbul, Osaka, Paris, and Toronto. China has much invested in a positive outcome, and has spent energy trying to convince the IOC that visitors, athletes, and sports managers will be welcomed regardless of politics, religion, and creed, and that the media will be able to report freely. Hosting an Olympic Games brings major exposure benefits, even though direct economic benefits from sponsorship is a risky undertaking. Benefits according to accomodation and tourism can often be a double edged sword, producing a massive peak, and fast fall, as evidenced in Sydney's experience. But the exposure is what China is really after. It is the finest opportunity ever to bring China and Beijing to the attention of a mass market in the world's most viewed event, most of whom still view China as a backward, authoritarian country with dirty loos. Much of the world is unaware of the fast change in China. Find out the decision first right here.

Kuala Lumpur Malaysia: Wednesday July 11th 2001

Seeing we are still in Malaysia this week, an excellent summary from a Malaysian on contrasting negotiation styles of Malaysian Malays, Chinese, and Indians. Valuable material for international business people, as while Malaysians prefer to call themselves "just Malaysians", there are major cultural differences that underly negotiation styles. The author proposes "...three proposed models of negotiation approach for each race...".

Singapore, which showed strong resilience in weathering the Asian crisis due to an open and international economy, became the first major Asian economy to officially enter a recessionary period yesterday posting the second subsequent quarter of negative growth. The economy slowed down -0.8% for the year, and a massive 10.1% quarter on quarter. This follows a few months of significant stock market falls, with a STI index sitting comfortably at well over 2000 last year, to levels of around 1650 as of today. Simultaneously, the Singapore dollar has fallen significantly in the last few days. Singapore annual growth rate estimates were slashed yesterday to 1 to 1.5% for the year from earlier estimates of 3.5 to 5.5%. The cause? - a lack of interest in foreign interest in investment in Asia as a whole, and decreasing demand for exports due to the world wide slowdown.

The news does not augur well for other Asian markets that are even more dependent on exports, especially in manufacturing and technology, such as Taiwan, South Korea, Malaysia, and Thailand. And the buzz around town is that people are revising their targets to assume a recovery in demand sometime in 2002, rather than the third and fourth quarters this year which was the commonly accepted view until a few weeks ago. At the same time, China continues to be the almost solitary bright light, attracting interest due to it's relatively low costs.

For those who are not quite sure you may want to refer to the Top 21 signs that your employees hate you.

Cathay Pacific aircraft are resting on the ground at the moment as the pilot's work to rule campaign really kicked in yesterday. Pilots refused a 9% pay increase offered by the airline, started to call in sick, 49 pilots were sacked, and yesterday around 20% of flights were cancelled and today around a third of flights are being suspended. The Asian Wall Street Journal reported yesterday that the airline is losing 50,000,000 Hong Kong dollars a day.

Cathay Pacific has been the top performer among Asian Airlines for the past few years, with Singapore Airlines (SIA) also performing well. Malaysia Airlines is still restructuring after the government bought back a major interest in the airline last year, and north of the border, the Prime Minister of Thailand, Thaksin Shinawatra, has gone on record as saying "Thai Airways Sucks". According to Thaksin, he "...only travels Thai because he has to..." - Well seeing that is based on experiences of first class, heavens help the guys in cattle class.

National airlines are seen as "national treasures" by their respective governments, and particularly in Thailand, Malaysia, and South Korea, this has led to massive inefficiencies as government largesse created a culture of cronyism, staff and board perks, and operational laxity during the boom years. It has become an ingrained culture that has been hard to turn around.

As good as an Englishman: Bradford England, is a small English Northern town nestled in the rolling hills of North Yorkshire, dotted with quaint working class stone abodes and English gentleman playing cricket on village greens. As well as providing the best pub Yorkshire puddings, it also houses come of the best curry houses in Europe, hosting a large community of Pakistani and Bangladeshi immigrants. Your editor was a frequent visitor for the past 6 years.

On the weekend Bradford became the fourth Northern town to be hit by racial riots this year, reportedly the worst yet. The legacy of a policy of shipping in low cost foreign labour to work their mill economy a generation ago came back to haunt the town. Now with the mills merely dark satanic shadows on the Bradford landscape, the dis-enfranchised sons and daughters of these immigrant workers and a disaffected "blame others" National Front fought running battles on the streets.

The real problem goes far beyond "racial problems". While business and political leaders in Bradford do "the right stuff" in employing foreign labour on the same conditions and salaries as WASP's these days, and encourage community projects for all, the dark side is that the English business establishment have never lost their superiority complex in dealing with the world beyond their carefully tended gardens and manors. While the Duke of Edinburgh reminds English expats not to stay too long in Asia as they may grow "slitty eyes", and characterises bad workmanship as "must have been done by an Indian", many English companies doing business internationally come far short of other international business practice by finding it "frighteningly difficult" to accept "outsiders" to their ranks and delegating decision making to the very nationals they used to colonise. A condition for working with the English often involves selling your soul to the English culture and becoming a modern day Uncle Tom, in return for big salaries and Roast Beef with Yorkshire pudding. As the English relate to their recent immigrants in England itself, this attitude manifests itself in the way many of the establishment businesses working internationally. The English companies that do succeed internationally, (and there are many of them) deserve great cred for shaking off the malicious culture where outsiders will be treated politely but can never really become "...as good as an Englishman...".

Kuala Lumpur Malaysia: Monday July 9th 2001

Rumours were flying on the weekend of snap elections being called in Japan, possibly timed for around September. Koizumi's statements today that "pain" was inevitable, with or without his radical reforms, suggests a strategy of getting voters to the polls before the pain really starts to kick in, and to cash in on his current popularity which would hopefully translate to the LDP as a whole. In the meantime, Japanese bank lending is down again for the 42nd consecutive month, wholesale-prices are down, and the NIKKEI is down 2% again as of Noon Monday.

Old mate of the forum, Dave Keenan, points us to the Economist's pessimistic view of the Asian regional economy. - "...This time the recession virus is being spread not by currency speculators, but by the collapse in America’s information-technology investment..." See also the Asian Market Prospects review and capsule overview from Asia Market Research dot Com, where we predicted the double whammy at the start of the year. The Economist is a left-of-center UK publication, that more times than not, get things right...

It's enough to give you the hee-bee-gee-bies: While authentic displays of Malay cultural shows are a joy to witness, characterised by the joy of life from the heart, modesty and respect, color and music of the soul so much a part of the Malay culture, the same can not be said for Malaysian preferences for Western pop music. At least among the circles I move in, middle aged Malaysians seem to prefer the soft rock mediocrity mindlessly served up by the Western pop industry several decades back. Many a time I've been tempted to poke out the little speakers in hotel elevators when exposed for the umpteenth time to that saccharine mind numbing pap served up the Kenny G, seemingly the most popular song ever in Malaysia. Lounge bars and even places that should know better like the Hard Rock Café feature locals belting out soul-less copies of Western pop hits devoid of any artistic merit. If the strategy of hotel owners is to serve out music so bad that it drives customers to drink, it's a winning one. It should be no surprise of course that one of the top selling bands in Malaysia ever is the Bee Gees.

Seems that the English educational establishment has also finally succumbed to mediocrity as Cambridge University this month resorted to posing a question in their compulsory final year exam asking for an analysis of lyrics from the Bee Gee's ditty - "..tragedy when you lose control and you got no soul, it's tragedy...".

Yep now that's a real tragedy...

Royals run amok: Being a week since our return to Malaysia, it has been impossible to ignore the development of a new chuppie haven - the proliferation of up-scale discos, trendy restaurants and dance clubs around the Jalan Sultan Ismail/Jalan P.Ramlee intersection. New is the chrome, white-walled, sparse table and counter, minimalist-designed 10-SI establishment (with appropriately minimalast custom), right next to the cavernous/art-deco Emporium Club. Adjacent to that is the latest designated in-spot of the well heeled - The Beach Club - like all ephemeral in-spots world wide, setting new standards in atrocious service standards. The now almost establishment Modestos, several ubiquitous up-market coffee outlets, and a couple more disco/pubs round out the corner. At least the Beach Club, with its gummy sharks swimming around in the aquarium atop the bar, indoor palm trees, and wooden platforms and balconies must win some cred for innovation in design. And it has to, 'cause the price of a beer here will keep the average Northern family filled up with tucker for a few days.

It is also the new fave for the more lively and trendy glitterati of Malay royalty, denied their previous hangout - the Tin Mine at the KL Hilton, when it finally closed shop last year. And this weekend, all hell broke out when a brawl erupted over an argument about a car exiting the car park in the wrong direction. Seems that someone didn't want to lose face by backing out. According to the New Straits Times, three police reports were laid against a Datuk (roughly equivalent to an English "Sir") in his early 40's, and five against the son-in-law of a Sultan. The handcuffs were out, and the hospital full of car jockey's, bouncers, royalty and VIP's tending their wounds.

Who says Malaysians can't have fun?

The Cathay Pacific cockpit crew work-to-rule strike is starting to have an effect. If flying Cathay Pacific, confirm your flights and times.

The recalcitrant index: Asian stock markets are down yet again today following falls on the Dow Jones and NASDAQ on Friday. As of Noon today, the NIKKEI is down around 2%, the Hong Kong Hand Seng and South Korea down 3%, and Taiwan and Singapore down around 1%. Interestingly the Malaysian KLSE index, down in the dumps for most of the year has recovered in the past 10 days, bucking the trend in the major Asian markets to follow US markets.

Kuala Lumpur Malaysia: Sunday July 1st 2001

Things were still pretty grim at the immigration counter at Kuala Lumpur International Airport as your editor flew in last night. The bright yellow smiley-face buttons sporting the tag line "Service with a Smile", worn by every counter clerk still fail to translate theory into action. Things got better at customs however, when a custom clerk flashed that genuine Malaysian smile that we value so much. And surprises of surprises, the baggage was delivered in short time, and you can now get metered taxis from the airport rather than the over priced so-called limos. Yes, first impressions are looking better at Malaysia's major gateway.

Friend of the Forum Buzz Singer suggested the following New York Times article on Thailand's operationalization of Thaksin's Thai Rak Thai message, in response to our earlier item on the sacking of foreigners by government agencies....

A short snippet...

"...Along with the abandonment of I.M.F.-style prescriptions has come a surge in economic nationalism. Thailand is drafting policies to help local products compete with imports. It has raised the fees for foreigners' work permits. And state agencies have been prohibited from hiring non-Thais as consultants.

This tendency toward isolationism stops short of policies in Malaysia, where the leader, Mahathir Mohamad, inveighs against neocolonial financiers. Thailand has not imposed controls on its capital markets, as Malaysia did in 1998. And it remains a popular destination for foreign direct investment and tourism, though new investment has fluctuated in recent months because of confusion over Thai policies.

While Mr. Thaksin is unnerving some foreign investors, he has won broad domestic support and respectful notices from a few analysts, who are cheered that Thailand is trying something different..."

Buzz points out that many of the agencies sacked indeed employed many Thai nationals, and at high levels, and this article provides further grist to the mill of that argument. Time will tell whether Thaksin is serious about empowering Thais, or just riding the wave of popular sentiment on the selfishness of foreigners in the wake of the Asian financial crisis.

Meanwhile back in Malaysia, the headline of the day is the destruction by fire of the Universiti Malaya's Dewan Tunku Canselor, the hall used for exams and graduation ceremonies. UM is also the destination for Malaysian PM Mahathir tomorrow (Monday) when he closes a symposium, - a visit subject to much controversy for the past week. Government controlled English language newspaper editorials and columnists, while not directly blaming anti-government forces for the blaze, are wringing their hands in anticipation of another victory in the PR war with anti-government political and neutral forces.