Singapore tech prodigy rides mobile apps boom

10-year-old Singapore tech prodigy rides mobile apps boom

	Photos 1 of 1 10-year-old Singaporean Lim Ding Wei is being feted by local media as the city state's youngest programmer of mobile applications.

SINGAPORE : As 10-year-old Lim Ding Wei blasts alien space ships on a computer screen in his living room, his father Lim Thye Chean looks over his shoulder proudly.

"This is way beyond me already, because I do not know how to do 3D programming. I can't teach him any more," he said proudly as his son zips around in outer space fully rendered in 3D.

From being the teacher, Thye Chean, 40, a chief technology officer at a local firm, has now become the student of his son, whom local media reports fete as Singapore's youngest programmer of mobile applications.

The game is the latest in Ding Wei's repertoire of mobile applications, which include the hit Invader Wars 1 as well as art scrawler Doodle Kids that has registered more than half a million downloads since it was posted on the iPhone App Store last year.

Fifth-grader Ding Wei is just one of a growing number of local programme developers jumping on the bandwagon as analysts predict a boom in global mobile applications, or 'mobile apps', industry this year.

"I plan to be a software programmer," said the boy, whose favourite subject in school is mathematics.

Mobile applications come with mobile phones and other hand-held devices, allowing users to access a wide array of Internet services while on the go, including finding one's way in a shopping mall or playing games online.

Information technology research firm Gartner forecasts that revenue from mobile phone applications worldwide will hit US$6.8 billion in 2010, up 60 per cent over last year.

Downloads from the massively-popular Apple App Store also accounted for at least 99.4 per cent of the 2.516 billion downloads of the mini-programmes last year, Gartner said.

The recently-released iPad tablet computer, which has already stoked interest among tech aficionados, can also run iPhone applications from the App Store, Apple chief executive Steve Jobs has said.

In addition to the upbeat figures, local developers have been heartened by local telecom firms Starhub and Mobile One breaking incumbent SingTel's stranglehold on iPhone sales.

"With the other two telcos coming in, there is definitely a boom in the number of (iPhone) handsets going out," said Sunny Koh, president of local game developer Personae Studios.

There is "huge potential" for the mobile application market to grow this year, he added.

"Singapore's market is growing and it is a good time for us to emerge as a publisher," Koh said.

Aside from games and quirky localised programmes like cash machine locators and mall directories, developers are also creating applications for schools to aid students in subjects like creative writing and chemistry.

Education application developer Elchemi Education said demand was growing as more students and teachers got hold of the latest smartphone and gained access to mobile application platforms.

"A lot of teachers are exploring mobile devices and a lot of students have iPods and iPhones... so with the kids having these existing devices, the school would also want to tap on using them," said director Joanne Chia.

The developer has rolled out applications in collaboration with schools and students.

One programme called S!Plot consists of virtual wheels which can be spun to generate random scenarios for students to practise their creative writing skills.

"A lot of kids like the graphic interface, so we use the iPhone or iPod Touch to wow them," Chia said.

In addition, the company has set up a club in conjunction with five secondary schools specialising in creating iPhone applications for their primary-level counterparts.

"The students can take their creativity and skills, like photo-editing, creating websites and all. Now they use those skills in iPhone (applications) development," said Chia.

But 10-year-old Ding Wei is looking at home, rather than school, for his next project: an open-ended simulation game centred around the management of a condominium, and modelled after his favourite game series, The Sims.

"I want to create a 'MyCondo' game," he says.

- AFP/il

America's hidden debt bomb

By Jeanne Sahadi, senior writerMarch 1, 2010: 4:59 AM ET

NEW YORK (CNNMoney.com) -- America's total debt load is on pace to top $13 trillion this year, and $22 trillion by 2020 -- and that's just the debt we're counting.

What's not being counted: potential debt bombs that don't get factored into most budget analysis.

When anyone talks about U.S. debt, they typically refer to two numbers.

The first is the debt held by the public. That's money owed to those who have bought U.S. Treasurys, most notably big bond mutual funds and foreign governments. Debt held by the public today is roughly $8 trillion and rising.

The second number is the money the federal government owes to government trust funds, such as those for Medicare and Social Security. The government has used revenue collected for those programs to cover other outlays. Currently, the debt to the trust funds is approaching $5 trillion.


The two combined is the total gross debt that's accounted for. But deficit hawks also worry about what's not on the books.

Here is just a sampling of the unseen or underplayed obligations that could worsen the debt outlook:

Losses from Fannie Mae and Freddie Mac

Mortgage giants Fannie Mae and Freddie Mac are private companies that for years had the implicit backing of the federal government. That backing assured investors that if anything went seriously south for the companies Uncle Sam likely -- although not absolutely -- would step in.

Well, things did go south, and now both are run by the federal government.

While the implicit guarantee has become explicit for Fannie and Freddie, its treatment in the budget is up in the air.

"Our budget doesn't have Fannie Mae and Freddie Mac on it, even though it's owned lock, stock and barrel by the American taxpayer," said Rudolph Penner, a former director of the Congressional Budget Office (CBO) during a conference held by the Peterson-Pew Commission on Budget Reform.

Last year, the CBO did start to account for both companies as if they were federal agencies on the budget. But the White House Budget Office only includes some potential costs because the future of the two companies is still under consideration. Last week, a Republican congressman introduced a bill that would require the two agencies be put on the budget.

It's still not clear what the companies' total hit to the federal budget will be. Amherst Securities, a broker-dealer in residential mortgage-backed securities, estimated that the total loss on the mortgages backed by the companies could reach $448 billion, with a portion of that covered by reserves or assumed by outside parties.
The CBO estimated the net costs to the government could top $370 billion by 2020.

These are just estimates. But what's clear is that Fannie and Freddie are not cheap dependents.
That's why some argue that lawmakers should assess the potential costs of implicit government guarantees well before things go to pot.

0:00 /5:34Debt chairmen: 'Everything's on the table'

"Their costs are largely unmeasured, unrecognized in the budget and unmanaged," federal budget expert Marvin Phaup wrote in a recent paper. "A troubling aspect of current policy aimed at restarting the financial markets is the likely expansion of implied guarantees to include the obligations of additional private financial institutions."

Unfunded promises

The governments' accrued debt to the Social Security and Medicare trust funds is known. And making those payments -- which begin in earnest this decade --won't be easy given the drop in federal revenue and the surge in government spending.

"[Lawmakers] need to acknowledge they have no way of funding them right now," said tax expert Len Burman, a professor of public administration and economics at Syracuse University.

But the piece of future entitlement debt that's not reflected under current budget protocols is what the government will have to pay into the system after its payments to the trust funds end -- which will happen by 2037 for Social Security and within the next decade for Medicare.


At that point, the programs will only be collecting enough in taxes to pay a portion of the benefits currently promised. There will be enormous pressure on the government to make up the difference, and Uncle Sam would have to borrow a lot of money to do so.

Some budget experts like Stuart Butler, vice president for domestic and economic policy at the conservative Heritage Foundation, would like to see the long-term obligations to Medicare and Social Security included in lawmakers' annual consideration of the federal budget.

Right now, money allocated to both entitlement programs is considered "mandatory" spending and therefore the spending increases for the programs are on autopilot and the financial commitment is uncapped in future years.

True cost of tax breaks

Everybody loves tax breaks. And there's more than a trillion dollars of them to love.

That's the amount of money the Treasury foregoes in annual revenue as a result of the many breaks in the tax code. And that effectively increases the government's need to borrow.

But that trillion-plus isn't really up for consideration during annual budget discussions. "Tax expenditures are basically hidden," Burman said.

No one advocates abolishing tax breaks altogether. But Burman and others believe tax breaks should be treated as discretionary spending. The idea is to bring them into the open so lawmakers can make a conscious decision annually about what they spend on tax breaks and recognize the costs associated with that decision.

Long-term costs of new rules

This year is the first year in which high-income investors with traditional IRAs or 401(k)s -- both of which let savings grow tax-deferred until withdrawn -- will have a chance to convert their accounts into Roth IRAs, where investments grow tax-free.

The new conversion rule is scored as a revenue raiser on the federal budget over the next decade because those who convert must pay the tax owed on their traditional IRA savings the year they convert.

But long-term it's a different story. Since investments in the converted accounts will grow tax-free, Uncle Sam will collect less revenue than he otherwise might have had the investors kept their ever-larger savings in a traditional IRA and paid taxes on them in retirement.

"It will cost federal coffers a lot beyond the 10-year window," Burman said. 

China surpasses Japan as the 2nd largest world economy

China's growth and challenges

It Surpassed Japan as the second largest economy in the world in the fourth quarter of 2009
 

 CHINA surpassed Japan as the second largest economy in the world in the fourth quarter of 2009.

Although Japan’s gross domestic product (GDP) for 2009 at US$5 trillion was higher than that of China at US$4.9 trillion, from the fourth quarter, China produced more goods and services (i.e. enjoyed higher GDP) than did Japan.

It still has some way to go before catching up with the United States, which had a GDP of US$14.5 trillion in 2009.

If China can grow 4% faster than the US annually, it is likely to surpass the US economy in 25-30 years. This could be sooner if the undervalued renminbi is revalued upwards.

Advantages

On a purchasing power parity (PPP) basis, which assumes similar cost for identical products and services in different countries, China overtook Japan in 2001 (see chart) and could overtake the US by 2020.

As per the International Monetary Fund, China’s GDP per capita in 2009 at only US$3,566 was still significantly lower than that of Japan (US$39,573) and the US (US$46,443).

Growing from a low base was the easy part; the challenge is to sustain growth when China becomes a middle income nation.

China has a few advantages that will help it sustain growth. First, it has a strong pro-growth government that can implement its plans.

In the past, such plans like the Great Leap Forward and the Cultural Revolution were socio-economic disasters but under the collective leadership structure, policies are more measured.

A strong government has enabled China to quickly modernise its infrastructure (unlike India) and enhance its strong position in certain sectors like renewable energy, steel and manufactured exports.

Second, China has a very large domestic market that enables domestic producers to achieve economies of scale and attract foreign direct investments and technology into the country.

Third, China has made good strides in education and research and development. According to Unesco, China’s share of global researchers rose to 20.1% from only 14% in 2002.

Challenges

China also faces immense challenges. There is, firstly, an over-reliance on investments and exports to boost the economy while private consumption as a percentage of GDP remains low.

In the longer term, China will require a basic social net that will encourage Chinese to save less for future medical and other bills.

China’s strong one-party rule may be suitable for leading a country from a low to middle income nation but to make the leap to a high income nation requires a focus on innovation and a liberal environment that retains and attracts talent (like the US).

Taiwan and South Korea have made the transition from autocratic governments to democratic governments.
The challenge is for China to maintain stability and yet sufficiently relax its grip on its people to allow this transition.

Another challenge lies in how an emerging China interacts with the US and the Western world. Both sides will have to resolve tensions from differing world views and competition for natural resources and markets.

In the longer term, China faces a demographic time bomb due to its one child policy. China’s rapidly aging population is expected to peak at 1.45 billion in 2030 according to a UN study.

By then, China could suffer from what Japan is suffering now, a stagnant economy and a declining population that represents a strain on its healthcare and social welfare system.

China was the world’s richest nation until 1850, a position that was toppled by an inept government in the last days of the Manchu dynasty and unfair treaties imposed after the Opium War in 1842, aimed at reducing British trade deficit with China by selling opium to the Chinese in exchange for Chinese goods.

Barring major military conflicts (unlikely in the nuclear age) and major policy blunders, China is likely to resume its position as the world’s richest nation, a position it held for almost 2,000 years since the days of the Han Dynasty (206 BC–AD 220) which rivalled the Roman Empire.

The nature of the world will change as an emerging China interacts with a declining but still powerful West.
Western liberal democratic traditions focused on individual rights will square off with Eastern collectivist paradigm putting society above the individual.

Inter-Asian trade and relations will strengthen China’s influence in Asia and position the renminbi as the de facto trading currency for the Asian bloc.

Failure of China and the West in accommodating each other could lead to trade war and even a new cold war, an outcome that can be avoided if more moderate voices that value an open diverse world can prevail over xenophobic ultra-nationalistic/religious voices.

In this new global reality, Malaysia will find it increasingly difficult to compete in manufacturing. Malaysia has to fight tooth and nail to retain and attract talent and boost services (like tourism). This means crafting an attractive liberal environment for its citizens and foreign talent.

·Choong Khuat Hock is head of research at Kumpulan Sentiasa Cemerlang Sdn Bhd.