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Tuesday, 4 May 2010

BJCC Golf and Country Club News

If you love golf you're going to love this!  What puts a smile on your face? Golf?



BJCC management fiasco: 'Outsourcing not the fair way ...

Golfers pleads Guan Eng to intervene

Bukit Jambul Country Club fiasco

 

Golfers Protest over new Buggy Rule


 

(one can translate that to English....click some keys)
Thugs & Secuirty Guards used to guard BJCC's fairway

The Star Feb 1 & 3:

Club managing director Datuk Eiro Sakamoto said the upgrade includes the purchase of additional 60 electric buggies for hire at a fee to "make more money"!

Golfers speak out against buggy ruling

Dutuk  Dr Chatar Singh 82, a member since 1984, said the ruling was not suitable due to the club's structure. "The design was meant to enable  golfers to walk around the course as the parking lot (for the buggy) is a distance away"

Member Tony Lim said the management also increased the buggy rental rates from RM22 to RM37 for the first nine holes. He added that using a buggy to play golf was pointless because the golfers enjoyed walking. 

Bayan Baru Barisan co-ordinator Por Joo Tee said that decision made should be a balance between profitability and corporate social responsibility. "I will write to Penang Chief Minister Lim Guan Eng, who is also Penang Development Corporation (PDC) chaiman, to look into the matter," he said when met at the club's on Wednesday. 

Japanese firm Taiyo Resort (KL) Bhd took over the club's management in 2010 and signed a leasing agreement with PDC and Island Golf Properties Bhd. 
Shttp://www.theedgeproperty.com/news-a-views/2638-lim-explains-why-taiyo-resort-got-contract-to-manage-bjcc.html


However, even at St Andrews members can still walk!

USGA Declares War on Riding!

A serious campaign to increase the number of golfers who walk is now underway by the United States Golf Association. The Golf Journal, official publication of the sport’s ruling body, launched a dramatic appeal headlined “Declare Yourself a Walker.”

Taking aim squarely against “the myths of golf cars,” David Fay, USGA’s Executive Director boldly states “We strongly believe that walking is the most enjoyable way to play golf and that the use of carts is detrimental to the game. This negative trend needs to be stopped now before it becomes accepted that riding in a cart is the way to play golf.”

The pronouncement is strong and specific, castigating those courses that have jumped on the riding bandwagon. While pointing out that the majority of U.S. courses have no policy requiring mandatory use of carts, USGA targets the more than 1000 places that do.



Returning golf back to its original nature is the century old organization’s justification for its new campaign. Putting its money where its mouth is, USGA is publishing its “Call to Arms” –an informative booklet, distributed free to the public. Titled A Call to Feet: Golf is a Walking Game, the detailed free booklet is available simply by calling USGA headquarters in Far Hills, N.J. at (908) 234-2300.

For years, individuals have been invited to become USGA members. Now, such golfers are asked to make a more serious commitment. The announcement requests that members sign and mail in the USGA Walking Member Declaration. Its text reads:

“. . .By signing this, I hereby give my oath that I will never ride in a golf cart for a round of golf unless it is forced upon me or I develop a physical condition which necessitates the use of a cart. Whenever given a choice, I will always walk.”

Members then receive a bright yellow bag tag, emblazoned with USGA’s logo, identifying the person as a Walking Member and bearing the full text of the Declaration oath.

By tradition, the USGA’s leadership has stood above commercial interests, resisting pressures to pervert the spirit and heritage of the sport. Doubtless there are people who, despite logic and evidence to the contrary, still will argue that riding is inherently faster than walking–or that rental revenue is essential to golf clubs and courses. Numerous examples kibosh these assertions, according to the USGA which has conducted many studies and thorough investigations.

For example, Pinehurst Resort and Country Club is cited, where walking and carrying your own bag is optional now on four of the property’s seven courses–1,3,4, and 5. (Walking’s still allowed on the famed Number 2 course but only with a caddie.) “It’s not slowing down play at all, and the courses are still packed. Granted, the policy hasn’t been in effect all that long, but I haven’t heard one negative comment yet.”

This trend toward providing players the opportunity to walk is expected to accelerate, as a result of USGA’s walking campaign. We encourage advocates of walking golf to pledge your oath and promote the USGA’s Walking Members Declaration!

 

RESPONSES by LC & UT

Dear BJCC Members: 

It has been brought to our attention that several unwarranted, foul-language statements/words had been sent out to people outside our members. Such are unacceptable and unwelcomed. We won't tolerate any of these.

Members understand that the platform be used to share our views and opinions. I have kept reminding everyone that we are members of a reputable club and all of us needs to try and maintain certain decorum when we wish to express certain disagreements and dissatisfaction. It is impossible to have a state where views and interpretations won't differ.

I am making a plea to all members to refrain from making any personal attacks, threatening or otherwise to people in our state government or to members of our club.

Thank you for your support and co-operation

Best Regards,
Stanley Park Feb 6, 2012

1. Liaison Council (LC) will be meeting with Dato Sakamoto on Thursday, 19 Jan 2012. We have on our agenda for discussion pertinent issues affecting members of BJCC. 

2. There has been requests that the LC have a session to meet and inform members on the outcome of the meeting and actions initiated by the LC to date. And we are happy to inform you that we have arranged to  hold this session on Friday, 20 Jan 2012 at 8pm at the coffee terrace.

Letters to BJ UT 0112

NOTICES

(1) Revised Sequence of Play

The management has informed that members will be playing  a new sequence of 9 holes golf, a combination of 4 old and 5 new holes effective from Saturday, January 1, 2012.

The sequence of play is: Holes # 10, 11, 12, 13 then followed by Holes # 5, 6, 7, 8 and 9.  In other words, Holes # 14, 15, 16, 17 & 18 be replaced by Holes # 5, 6, 7, 8 & 9 .
  1. Players must play the 9 holes in sequence, no skipping of hole is allowed.
  2. Tee-off time is 7.00am. Teeing off before 7.00am is strictly not allowed. Players must start from the 10th tee. They shall not commence play from any other holes.
  3. Buggies are allowed to go onto fairways unless management announced otherwise.
 The above course control is being implemented during this interim period until the renovation of all the 1st Nine Hole is ready for play.

Disciplinary action will be taken against any players who infringe any of the local rules and regulations above.

(2) With effect from February 1, 2012, the 1st Nine Holes will be opened for play
  1. Golf Registration counter will open at 7:00am daily.
  2. Tee off time is 7:30am daily. Players must commence play from 1st Tee and not from any other holes.
  3. Buggy is compulsory for all players, not for free but at a fee ranging from RM37.10 to RM95.40 with 6% Govt Tax, depending players are members, guests/visitors, playing 9 holes or 18 holes.
  4. Caddy Fee - Monday~Friday: RM35.00 + 6% Govt. Tax (RM47.70); Sat, Sun. & Public Holidays: RM50.
  5. Walking Golfers are allowed to play from Monday to Thursday. The tee off time is 5:00pm. Players are required to register themselves personally and to collect their starter chits. Booking can be made from 4:30pm onwards on these days (Monday to Thursday except on Public Holidays)
 (3) To cut cost effective from Monday, January 9, 2012, service at golfers' changing rooms (shower toilet) shall be closed at 8:30pm daily instead of 10:00pm normally due to few golfers using them
Members and guests who want to use shower and toilet facilities may go the swimming pool complex.
Notes: Interesting news:   
  
LIAISON COUNCIL FOR THE YEAR 2012

AGM 2011
BJCC AGM - A  NOV 17 LANDSLIDE VICTORY !!!

C....O....N.....G....R.....A.....T......U.....L.....A......T.......I......O......N......S !!!!
TOGETHER....WE.... DID..... IT.......a clean sweep with all 8 LC nominees automatically elected  in en bloc!!

And get this, a record no of attendees...............100 !!!
And top this, a record no of
proxies collected ..... 361 !!!

Yup, obviously nobody expected the unprecedented attendance, because the administrators had to keep adding chairs for the members turning up! 79 is the no from the attendance register, but it sure looked like more than that in the ballroom!

What can we say? THANK YOU ALL!! Thank you ALL for a job well done - the FUGs and the non FUGs! This would not have happened or been possible if not for everybody's support, encouragement, contribution and hard work in the last 11 months!

This victory belongs to all of you - those who were with us right from the start when the FUG club and the Protem came to be, those who came along in the months following and joined in to lend their support and encouragement, those who gave us their proxies, those who went all out to help us obtain and collect the proxies, those who turned up for the AGM, even those who for good reasons wanted to but were not able to attend.

Some had company dinners (year end nearing la), some had wedding dinners (it's the "marrying" month and season), some had family commitments, some were not well (we hope this good news makes you feel much better, do take care!), some had prior commitments...whatever it was, we know you wanted to be there and some little part of your mind was thinking how the AGM went and what was the outcome right? Well, it's the  thought that counts, so thank you too!  

So for those who were not there, i'll just give you a running commentary on what transpired (or did not transpire, depending on how you look at it)!

From as early as before 7.30pm, members were already registering and streaming in to the ballroom. Mr Yap, Chairman of the LC and some of his committee members were there. BUT, come 8.00pm, there was no sight nor sound of the Trustee, nor Dato Sakamoto or anyone from the IGPB board. How could this be??

How can the Trustee call for the AGM and NOT be there to convene the AGM ? How can the management not have the courtesy to show up when  they were invited?

Well, judging from their nonchalant response to members' woes and their lacklustre interest in their duties, trust the Trustee to conjure up a no show! Then we were told that word was received the Trustee was sending a representative, who was on the way - from KL !! Even some members of the presiding LC were late in turning up - amongst them Dato Boonler and the Hon Sec, Ms Joyce Wong! 

So the LC Chairman had to take over, convene and call the meeting to order as the quorum of members present was met. Mr Yap duly started the ball rolling, going straight to the 1st item of the Agenda, appointment of Chairman for the meeting. The floor proposed Mr Lim Chien Aun (son of the late Tun Dr Lim Chong Eu), who took the Chair for the AGM.  Still no show by the Trustee's rep, then word came that they were still on their way, but had also lost their way! Oh dear...what a circus..what a mess! But at least it accorded all present a good laugh!

The meeting proceeded as per the agenda, with debates on irregularities like LC's report and accounts not being sent with the notice of AGM, no details of accounting items in the balance sheets of the financial report, etc, etc. And of course Boonler questioning on the election process of the Protem etc, with the floor resoundingly defending and countering him in unison! BRAVO, guys and gals, we did good there! I think he didn't reckon on us all being so "UHU" - you know, cohesive!

As there was no contest, all 8 nominees were automatically elected in to form the new LC. Then the Trustee's reps arrived ...FINALLY! Only to be soundly and rightly censured by Mr Khaw for not even having the courtesy to apologise to the meeting for their tardiness, and non attention to duties like pre-circulation of submitted resolutions to members, even the proxy forms submitted were still in the "lock-up"! Those 2 poor guys from KL - they were really sent to the slaughter house by the Trustee! So we had a 30 mins break to partake of the snacks and drinks served to give time for the resolutions to be photocopied for distribution, and the proxies to be "released" and counted! This ever happened before in previous AGMs?

Anyway, to cut a long story short, after the break the Chairman Mr Lim invited the newly elected LC members to the front, and the outgoing LC stepped down. Noted that only Mr Yap stayed on whilst the others went off after a vote of thanks to them was recorded.

Resolutions were presented and healthily debated, and at the end all 5 resolutions were adopted, either by poll vote or show of hands. The AGM was officially adjourned just before 11.00pm.

The culmination of 11 months of hard work and dogged persistence by the FUGs and the members. WHEW!!

But winning is just the beginning and the start, the more difficult part of the long road and journey is getting down to work and doing the best we can to justify your faith in us! For that, we call on your continued unwavering (can i say undying?) support as we've witnessed in the past 11 months. May i reiterate on behalf of the new LC that we sincerely continue to welcome your comments, suggestions, feedback, and even criticism if forthcoming, to help us in carrying out our duties. As we announced at the AGM, we intend to continue reaching out to members through this email and hope to widen our reach by having members voluntarily signing up to be included in the mailing list. 

The new LC will convene to elect the office bearers amongst other matters,  and we shall accordingly notify you when this is done.

So till then, we thank you ALL again for a fantastic turn out and a record breaking feat of more than 300 proxies obtained.


YOUR RESOUNDING VOICES IN UNISON WAS HEARD, YOUR DYNAMIC PRESENCE WAS FELT  !! WELL DONE ONE AND ALL!!

Thank you, and regards,

Guat Lian for the LC



BJCC to hasten upgrade - Golf club aims to finish renovation by next year


By DAVID TAN davidtan@thestar.com.my  Photos by K.T. GOH Wednesday June 29, 2011
Tedious job: Workers making sure the grasses are well maintained at the scenic Bukit Jambul Country Club golf course.
 
TAIYO Resort (KL) Bhd is targeting the upgrading works at the Bukit Jambul Country Club (BJCC) golf course to be completed in 2012, a year before the scheduled completion.

Taiyo managing director Datuk Eiro Sakamoto said that the first nine holes of the 18-hole golf course was now 60% completed.

“The other 40% is scheduled for completion by end of the year.

“So far, we have completed replacing the grass at the putting greens with imported TifEagle grass.

“We have also completed the trenches on the fairway, which is topped up with sand to improve the drainage system of the golf course,” he said in an interview.

Sakamoto said the cow grass for the fairway was expected to be replaced with Bermuda grass by end of the year.


Looking ahead: Sakamoto (left) and BJCC general manager Jansen Loh inspecting the upgrading works at the golf course.
 
“We will start upgrading the second nine holes next year and this will take 12 months to complete,” he added.

Sakamoto said the renovation of the golf course would turn it into a buggy-course. “The buggies are now restricted on only the buggy track.

“Once the renovation is done for the first nine holes, new buggies will be brought in to service the golfers, bringing them to the fairway,” Sakamoto said.

He also said Taiyo would spend about RM3mil to buy 110 new buggies. He said renovation work for the clubhouse would start in July.



Lovely green: Work on the first nine holes of the 18-hole BJCC course is now 60% completed.
 
The renovation, which should be ready by December 2011, will see a restaurant serving Japanese, Chinese, and local cuisine, a terrace coffee-house and new changing rooms.

Sakamoto said the upgrading work for the 18-hole golf course is around RM6mil, while the clubhouse renovation would cost another RM3mil.

Taiyo is also allocating about RM30mil to maintain the golf course and the clubhouse for the next 10 years.
“We understand the importance of the club to attract overseas golfers to Penang and its role in promoting tourism,” he said.

Last November, Taiyo signed an agreement with Penang Development Corporation (PDC) and Island Golf Properties Bhd (IGP), a subsidiary of PDC, to undertake the management and operation of BJCC for 20 years.



 
A hazard: A worker trimming the grasses near a sandtrap.
 
Under the agreement, Taiyo will complete the upgrading works of the golf course by 2013.
“The name Bukit Jambul Country Club is expected to be changed officially to Penang Golf & Country Club soon,” Sakamoto said.

PDC general manager Datuk Rosli Jaafar said Taiyo should be given time to complete the upgrading works by 2013, according to the agreement.

BJCC liaison committee chairman Datuk Boonler Somchit said following a discussion by the liaison council and the management on May 26 regarding the poor maintenance of the second nine holes of the golf-course, Sakamoto agreed to take immediate action to improve conditions.

“Sakamoto also reassured that the renovation deadline of the first nine holes will be met by December this year,” he said.




FRUSTRATED & UNHAPPY GOLFERS

Lawyer's Letter to Trustee_Aug 11 2011

Reply to Trustee 7th May 2011

Letter from BJCC/Island Golf 's Solicitors to Trustee on EGM 1 April 2011

FUGs (that's us, the Frustrated and Unhappy Golfers) of BJCC, Latest news bulletin from the Pro-tem! Mar 18,2011

The Pro-tem C'ttee through one of it's member, Mr Neoh Kar Seah had arranged for the above meeting at BJCC in our continuous efforts to fight for the rights of the walking golfers.

YB Phee is the State Legislative Member for the Sg Puyu constituency (that's in Seberang Perai, and for those food aficionados, it's also known as the "Coconut Nut Tree Under" place, aka "Eah Chang Kah")! YB is also the Penang State EXCO for Health, Welfare, Caring Society and Environment. YB is also popularly referred to as "Peh Moh" (white hair!), a nickname which he relishes as it distinguishes him instantly!

The meeting kicked off with Mr Neoh introducing YB to the floor, after which Chairman of the Pro-tem, Dato' Dr Chatar Singh, briefed YB with a short historical perspective of BJCC. Dato' related the birth of BJCC in 1984 through the vision and legacy of the late Tun Dr Lim Chong Eu, the evolution of BJCC through the years, esp the benchmark year in 1990 when buggies and buggy tracks were introduced, the resulting introduction of non controlled hours for the walking golfers, and the recent change of management which has led to our present predicament  - the closure of the first 9, the drastic unilateral curtailing of non controlled hours by the management, the frustration and unhappiness generated as a result, the refusal of the Liaison Council to champion our cause, the formation of the Pro-tem.

Dato' Chatar handed a copy of the list of actions which had been undertaken by the Pro-tem to date (list was attached to the 1st email sent to all FUGs). He was also informed that we had written to the CM on the matter but had as yet to receive any response.

After clarifying the issues and our concerns (rememebr YB is NT a golfer, so somethings are new to him), listening to comments, feedback and suggestions from the members present, YB has agreed to take up the matter to CM. YB is of the opinion that our request for reinstatement of the non controlled hours prior to Dec 27 2010, and for walking to continue even after renovations of the course is completed is a fair and reasonable request as it is just giving us back what we enjoyed before, we are not demanding for more!

YB is not a golfer, but he fully supports the concept of walking which is beneficial to all strata of the community, golfers or not. More so when it applies in the context of senior citizens which is a portfolio under his direct purview. Apologies to the "senior citizen" group of walkers, but we had to capitalise on that to gain extra mileage for our cause!

All in, we believe the meeting went well, with YB inputting his perspective of the matter, offering some wise words, injecting humour and wit into the dialogue, and most important of all, his assurance that he will do something about this matter after hearing us out.

On behalf of the Pro-tem, we thank the FUGs and other members who turned up for the meeting to lend their support and add to the show of numbers. We apologise for the one hour delay as YB was held back in a meeting which together with the CM in Komtar. We thank you for all your input which we are sure helped YB to understand our predicament, and gave him an insight into the unpopular management style of Sakamoto and his team, the overall unhappy environment in BJCC which is affecting members and staff alike.

To those who could not attend, we thank you too and are grateful and appreciate your support all this while, and hope this email brings a smile to your faces, a spring to your step when you next walk and add 50m to your drive!!

We trust that with this latest development and the involvement of YP Phee, we can see some light at the end of the tunnel, and although no one can guarantee the outcome, let us all remain positive, hopeful and optimistic that this impasse will be resolved amicably and favourably.

Have a good weekend, enjoy your walk and happy golfing!

Best reagrds and wishes from us in the Pro-tem,



UNILATERAL RESTRICTIONS IMPOSED ON NON CONTROLLED HOURS

The General Manager Golf Operations posted an undated circular announcing that with effect from 27th December 2010 the new non-controlled hours will be before 7.28 am and after 5.30 pm on Weekdays and only after 5.30 pm on Weekends and Public Holidays

PETITION dated 19th December 2010 signed by 129 golfers requested for the old non-controlled hours to be reinstated i.e. before 8.30 am from the 1st tee and before 10.30 am from the 10th tee on Weekdays and before 8.30 am from the 1st tee and before 9.00 am from the 10th tee on Weekends and Public Holidays and after 4.30 pm from the 1st tee and after 5.30 pm from 10th tee on Weekdays and after 4.30 pm from the 1st tee on Weekends and Public Holidays.

Now that only one nine is available for play the Frustrated and Unhappy Golfers have requested that the non-controlled hours be before 8.30 am and after 4.30 pm from the 10th tee on condition that members with buggies will have priority after 8.00 am and before 5.00pm.

With effect from 10th January 2011 the new non-controlled hours were changed to before 7.56 am and after 5.02 pm on Weekdays and only after 5.02 pm on Weekends and Public Holidays

The PETITION was submitted to General Manager Golf Operations on 23rd December 2010 => NO REPLY
Reminder sent to General Manager Golf Operations on 3rd January 2011 => NO REPLY
PRO-TEM COMMITTEE formed on 3rd January 2011
Met informally on 10th January 2011
Second Meeting on 24th January 2011
Met informally on 11th February 2011
Met informally on 24th February 2011
PRESS REPORT in STAR on 4th January 2011
LIAISON COUNCIL Chairman written to on 3rd January 2011
L.C. called a meeting on 7th January 2011 => given extension of half an hour

Letter dated 7th January 2011sent to Chairman of LC requesting for STATUS QUO with conditions => NO REPLY
Reminder sent dated 11th February 2011 => NO REPLY
BJCC TRUSTEE => UNIVERSAL TRUSTEE (M) Bhd
Email dated 31st January 2011 sent => NO RESPONSE
Reminder emailed on 15th February 2011 => NO RESPONSE
Second Reminder emailed on 22nd February 2011 => NO RESPONSE
ISLAND GOLF PROPERTIES BERHAD
Letter dated 14th February 2011 sent to Datuk Sakamoto => NO REPLY
Reminder sent dated 21st February 2011 => NO RESPONSE
SUPPORTERS SIGNED UP 263.

===============================================
Dear BJCC Golfing Guys and Gals,

We, the members of the Pro-tem Committee would first and foremost, like to express our sincere thanks and heartfelt appreciation to you for supporting and joining us in the show of force to the management of BJCC our frustration and unhappiness over the curtailed non –controlled hours. THANK YOU!!

Secondly, we sincerely apologize for the oversight on our part if some of you have not been brought up to date or included in the loop of the scheme of things. We make no excuses but we learn as best we can and from hereon, we shall keep you posted of what’s happening, what’s been done and the outcomes. Please rest assured that as we are sending you the emails by BCC, your email addresses will not be made known to others in the mails sent.

For your info, 129 signatures were collected in the first petition drive initiated by some walking members against the amended non-controlled hours which came into effect on 27 Dec 2010. Following that, the first meeting of golfers was held on 3 Jan 2011 which incorporated a press conference to highlight our plight and also resulted in the proposal and formation of this Pro-tem Committee.

The efforts of the Pro-tem Committee to seek a meeting with the management on this issue met with no response, and the MD, Dato Sakamoto expressly stated that we go through the elected Liaison Council (LC) However, as can be certified by those of you who were present when we met with the LC on 7 Jan 2011, the Chairman of the LC, Dato Boonler Somchit had in no uncertain terms stated that the LC is washing it’s hands off this issue and is not legally bound to represent the members. What man? Members elect you and you say you don’t represent members?? Hmm….!

Subsequent to that, came the comments from certain quarters that it was only a small number of golfers (especially walking golfers) who were making noise! This led us to initiate the second drive to collect signatures to evidence that the number is indeed not small! For that, we managed to collect a total of 263 signatures from both the walking and buggy golfers who support our cause! From an estimate of 300+ active golfers, we reckon that this represents a pretty big group. Where got small huh?

Along the way too, we learnt from the COO, Mr Johnny Khoo, that upon completion of renovation and upgrading of the course, BJCC will be turned into a complete buggy course and no walking will be allowed! Couple that with the LC’s stand, we reckoned that if we don’t do something about the LC, we’ll have :
1) no way to press for status quo reinstatement of non controlled hours
2) no fighting chance of retaining our walking privileges when renovations are completed!

So that gave birth to the third drive to collect signatures to request the Trustee for an EGM to, amongst other things, remove the present LC!

To give everyone a clearer picture of the Pro-tem has done to date, keep reading below, presenting the sequence of actions taken and the responses (or non-responses rather!) to date.

Please feel free to disseminate what’s happening to members who have not signed up for any of the drives or provided their email addresses to us. Should any member like to be included in the email loop, please ask them to write in to this email address : fugc.protem@gmail.com and we shall include them in our next update.

Once again, thank you, and Happy Golfing!

===================================================
The info below is for BJCC FUG members. Please deseminate the info as best as anyone can to keep members informed. "Re: Bukit Jambul Country Club, Penang

We, the members of the Pro-Tem Committee elected by Frustrated and Unhappy Golfers of BJCC on 3rd January 2011, wish to bring to your kind attention the concern and unhappiness felt with the unilateral imposition of very restricted non-controlled hours [for walking golfers] by the new Management of BJCC [Taiyo Resort (KL) Bhd] as from 27th December 2010 and subsequently revised on 10th January 2011 to before 7.56 am and after 5.02 pm on weekdays and only after 5.02 pm on weekends and public holidays.

The Frustrated and Unhappy Golfers, who represent more than 90% of the active golfers, would like the non-controlled hours to be reverted back to what they were before the new Management took over. We have taken into consideration that there is only one nine available for play for the next three years. The Frustrated and Unhappy Golfers want the non-controlled hours to be before 8.30 am and after 4.30 pm with the proviso that members with buggies will have priority after 8.00 am and before 5.00 pm.

Representation to this effect has been made by the Pro-Tem Committee to the General Manager Golf Operations of BJCC, the Liaison Council, the Trustee and finally to the Island Golf Properties Bhd but none have responded to our appeal despite reminders being sent.

Having followed the proper procedure, the Pro-Tem Committee is left with no alternative but to approach the Chief Minister to intervene and help resolve this impasse."

["Re: Bukit Jambul Country Club, Penang] and finally that of the EGM as below : "Ms. Liew Mun Moy Universal Trustee ( Malaysia ) Berhad We, the undersigned, being members of BUKIT JAMBUL COUNTRY CLUB, wish to convene an EGM (Extra Ordinary General Meeting) at an earliest possible date and time, and are requesting for this meeting under Section 19(2)(t) of the Trust Deed. We would like to table the following resolutions at the meeting: 1. Vote of no-confidence in the Liaison Council members for Years 2010/2011; 2. If (1.) above is approved: To elect a new Liaison Council; 3. Withdraw all privileges accorded to Liaison Council Members; 4. Reinstate Non-Controlled Hours to before 8.30 am and after 4.30 pm; 5. Abolish voting by Proxy in General Meetings of BJCC; 6. Reduce monthly subscriptions by a minimum of 50% of the prevailing rates, over the period when only 9 holes of the golf course are open for play."

===============================================
BUKIT JAMBUL COUNTRY CLUB

The Bukit Jambul Country Club is a Proprietary Club incorporated under the Companies Act and is owned, operated and managed by Island Golf Properties Berhad, which is a subsidiary of Penang Development Corporation.

BJCC opened for membership on 10 October 1984. It is basically a golfing club having a few other facilities and amenities.

The Developer is required in law to appoint a Trustee to act for the interest of club membership holders and there must be a TRUST DEED containing covenants, which has been approved by the Registrar of Companies.
“This Deed is made with the intent that it will benefit and provide protection to the Members of their interest to the extent provide herein.”
Under the Trust Deed, the Developer and the Trustee shall establish a Liaison Council for the purposes of advising the Trustee with regards to any breach of the covenants in the Deed by the Developer.
The “Parties to the Trust Deed” are:-
(i) Island Golf Properties Berhad;
(ii) Trustee and
(iii) The Membership Holders.

NON-CONTROLLED HOURS

‘The BJCC golf course was planned and built in 1984 as a ‘walking course’ and it had no facilities for the use of golf buggies (motorised). No buggy tracks were laid on the course nor any buggy shed incorporated into its building design. Furthermore, the first set of 30 buggies was only acquired in 1990 as an additional facility and their use is not compulsory to-date. Therefore members who purchased membership as from 1984 did so on the explicit understanding that they will be able to walk the course when playing golf whilst carrying the golf clubs or pulling the same on a golf trolley.

In the November/December 2001 issue of the Suara (the BJCC Newsletter) Non-Controlled Hours were published to take effect on 1st December 2001 which were before 8.30 am from the 1st tee and before 10.30 am from the 10th tee on Weekdays and before 8.30 am from the 1st tee and before 9.00 am from the 10th tee on Weekends and Public Holidays and after 4.30 pm from the 1st tee and after 5.30 pm from 10th tee on Weekdays and after 4.30 pm from the 1st tee on Weekends and Public Holidays.

Although these unilaterally imposed restrictions infringed on the traditional rights enjoyed by golfers since the inception of club membership in 1984, it was nevertheless agreed to by all parties concerned and have been in existence since.

On 22 October 2010 Island Golf Properties Berhad signed an agreement for the out-sourcing of the management of BJCC to Taiyo Resort (KL) Bhd..

The General Manager Golf Operations of BJCC posted an undated circular announcing that with effect from 27th December 2010 the new non-controlled hours will be before 7.28 am and after 5.30 pm on Weekdays and only after 5.30 pm on Weekends and Public Holidays

PETITION dated 19th December 2010 signed by 129 golfers requested for the old non-controlled hours agreed to and implemented since December 2001 be reinstated but recognising that only one nine will be available for play for the next three years, the Frustrated and Unhappy Golfers have requested that the non-controlled hours be before 8.30 am and after 4.30 pm from the 10th tee on condition that members with buggies will have priority after 8.00 am and before 5.00pm.

With effect from 10th January 2011 the new non-controlled hours were changed to before 7.56 am and after 5.02 pm on Weekdays and only after 5.02 pm on Weekends and Public Holidays.

The Frustrated and Unhappy Golfers met with the Liaison Council on 7 January 2011 and were not happy with the extra half hours given but wanted their request as above to be approved.

Letters written and reminders sent to the BJCC Management, the Liaison Council, the Trustee and the Island Golf Properties Bhd. have not been answered to date.
Have a good day……….Thank you.



Tuesday January 4, 2011

Golfers up in arms over restricted ‘walking’ time


(To all my beloved golfers, The Liaison Council (LC) has called a meeting with all the golfers at BJCC, golfer terrance at 10.00am on 7/1/2011. They met the management on 5/1/2011 and I was told that some good news for walking golfers. Please come for the meeting.  With best regards,  Chuah Kok Beng)

A GROUP of disgruntled walking golfers at the Bukit Jambul Country Club (BJCC) in George Town voiced their dismay over the management’s decision to restrict their ‘walking’ time on the course.

Datuk Dr Chatar Singh, who heads a pro tem committee of the group of over 100 regular golfers at the club, said walking golfers used to enjoy their rounds of games in the morning from 7am to 10.30am and in the evening from 4.30pm to 6.45pm.

But under the new rules effective Dec 27, we have to tee off by 7.28am on a first-come-first-served basis.

Previously, we could have another tee off at 8.30am in addition to the 7.30am,” he said.

In the evening, walking golfers can now only tee off after 5.30pm instead 4,30pm,” he said at the club yesterday. (A walking golfer is a golfer who walks on the course while playing without using a buggy)

Dr Chatar Singh claimed many golfers had joined the club as they wanted to enjoy the walking experience.

“Many of us are retirees and walking and playing have become a way of life that keeps us healthy,” he said.

He said the management had announced the new times in view of a major renovation to be carried out at the first nine holes of the 18-hole course.

Her said now that there were only nine holes left, the walking golfers were not given much time to play their game. “In the evening, the course is usually empty after 4.30pm. So why not allow walking golfers to start earlier?” he asked.

He said the committee had written to the management on the issue on Dec 23 but there was no response yet.

Dr Chatar said if the club management refused to respond to their call and readjust the time, the walking golfers would defy the rule.

“If it were to take disciplinary action against the players, then we will defend them,” he said.

Club liaison council chairman Datuk Boonler Somchit said: “The committee is concerned about the walking rights of the players.

“We intend to convene a meeting this week to look into the issue and talk to the members.We also understand that the issue needs to be solved amiably.

,Saturday October 23, 2010

It’s now Penang Golf Club

Change to simple name will attract international golfers

"According to the contract, we have three years to complete the upgrading but we hope to cut down this time two or so years" - Taiyo Resort (KL) Bhd CEO Datuk Eiro Sakamoto 

 
THE Bukit Jambul Country Club (BJCC) will officially change its name to the Penang Golf Club following the outsourcing of its management and operations to Japanese investor company Taiyo Resort (KL) Bhd.


Company owner and chief executive officer Datuk Eiro Sakamoto said the name change would help attract more international golfers to the island.


“Penang is well known internationally while Bukit Jambul is less known.


“We want a simple name, so we are planning to change it to Penang Golf Club and (name the course) the Bukit Jambul course,” he told a press conference after inking the 20-year deal with operators Island Golf Properties Bhd (IGP) and owner Penang Development Corporation (PDC) yesterday.


He said the upgrading of the 18-hole golf course and clubhouse was Taiyo’s first priority after taking over the club’s management.


Sakamoto said they would spend RM6mil to upgrade the course and RM3mil on the clubhouse.


“We hope to start the renovation of the golf course very soon when all the plans have been approved by PDC and MPPP (Penang Municipal Council).


The clubhouse upgrading will follow a few months later.


“According to the contract, we have three years to complete the upgrading but we hope to cut down this time to two or so years,” he said, adding the management would then begin studying which outside golf courses they intended to be affiliated with.


Asked about the projected annual revenue Taiyo expected from the takeover, Sakamoto said the club’s income would come from four sources — members’ monthly subscription fees, food and beverage profits from the club, the rental of buggies and green fees.


“Our target is RM9mil to RM10mil in revenue a year,” he said but declined to comment whether there would be a rise in membership fees.


Taiyo, which owns and operates the Kajang Hill Golf Club in Selangor, won an open tender for the BJCC management in mid-April this year, beating four other applicants.


Chief Minister Lim Guan Eng, who officiated the signing ceremony in Komtar, said over the next 20 years, Taiyo was bound to a guaranteed rental of RM29mil as well as a capital investment cost of RM51mil for improving, upgrading and maintaining the course, clubhouse and facilities.


This includes a minimum RM100,000 spent on monthly maintenance expenditure.


“The outsourcing exercise will also involve the replacement of 110 buggies every three years while the company is required to organise at least one international tournament, preferably the Malaysian Open, every three years upon completion of the upgrading works,” he added.


Friday May 8, 2009

Fee rise worry for BJCC members

A POSSIBLE hike in membership fees is foremost in the minds of Bukit Jambul Country Club (BJCC) members as a change in management is set for August.


They generally have few complaints about the 18-hole golf course and hope the new management will continue the good work while maintaining the current membership fees.


“I’ve been to about 50 golf courses all over the country and I would say BJCC is the best around the Penang area.


“They take good care of the course and facilities and it’s a nice place to golf,” said Hiroo Fukai, 73, a Malaysia My Second Home resident who has been staying in Penang since 2005.


“Our only concern is that when the management changes, the fees may go up. “We hope this does not happen as a lot of Japanese like to golf in Penang,” said Fukai who hails from Yokohama.


On Sunday, Penang Chief Minister Lim Guan Eng announced an open tender for the management of the 53ha BJCC to increase the profits of the club.


BJCC, which is managed by a subsidiary of the state’s development arm Penang Development Corporation, has been raking in just RM1mil a year for the last three years.


Engineer H.A. Ling, 53, who was seen practising at the club, said the change of management should not be at the expense of the members.


“We hope they’ll continue to offer us a good deal. It’s nice to come here as you won’t have trouble finding space to play,” he said.


Caddie Anwar Mohamad, 37, said BJCC had great potential as a Malaysian Open home ground but drainage on course could be improved.


“On some good courses, you can play half an hour after it rains. It will be a good to improve the drainage here,” he said.


Japanese firm lands RM80m Bukit Jambul resort contract 


GEORGE TOWN: Japanese company Taiyo Resort (KL) Bhd, which manages the Kajang Hill Golf Club, has been awarded an RM80 million contract to manage the state-owned Bukit Jambul Country Club (BJCC) for 20 years.

Chief Minister Lim Guan Eng, who is the Penang Development Corporation (PDC) chairman, said the PDC board agreed on Tuesday, April 13, after certain conditions were set, to outsource the management of the club's operations to Taiyo, a Japanese company with a paid-up capital of RM5 million.

BJCC is run by Island Golf Properties Bhd (IGP), which is a subsidiary of PDC.

"The guaranteed returns to the PDC for the first 10 years are RM13 million, the next five years RM7.4 million and the following five years RM8.6 million, totalling RM29 million.

"The capital investment for the first 10 years will be RM30 million and for the second period of 10 years RM21 million, totalling RM51 million over 20 years," Lim said at a press conference.

The capital investment for the first 10 years would include golf course upgrading, club house upgrading, both within the first three years and replacement of existing buggies with 110 new buggies every three years and the maintenance of the golf course and club house at RM100,000 every month.

The company was among seven which had submitted bids for the contract, which was retendered by the PDC after only one RM2 company made its bid for the contract during the first tender exercise in 2008.

Former PKR MP Datuk Seri Zahrain Hashim, who has turned independent, was the chairman of state-owned IGP when the company decided to award the contract to a RM2 company. This was rejected by the PDC board on Feb 10, 2009 as the company had no track record of managing a golf club.

Lim's move to retender the outsourcing proposal incurred Zahrain's wrath, leading to a strained relationship between the duo. It ended with Zahrain calling Lim a dictator, communist minded and chauvinist.

Lim said Taiyo would appoint the new chairman for BJCC but IGP would remain as a wholly owned subsidiary of PDC.

According to the terms of the contract, instead of Taiyo acquiring the majority of the issued and paid-up capital of IGP, PDC agreed to appoint 11 Taiyo representatives out of the 15 maximum number of directors on the IGP board.

All profits and losses made from the operation and management of BJCC will be borne by Taiyo.

Taiyo is also required to organise at least one international tournament, preferably the Malaysian Open, once every three years upon the completion of the upgrading works on the golf course within three years.

All existing staff under IGP shall be retained and retrained by Taiyo.

Lim said with the management being outsourced, BJCC would be "professionalised".

"Previously, BJCC suffered losses without much profits and with outsourcing, there is a guaranteed contract value of RM80 million over the next 20 years. This tender would allow us to get a birdie and eagle at the same time," Lim said.

He hoped that with Taiyo's involvement, being affiliated to golf courses in Japan, there would be more interest from Japanese golfers to come to Penang.



By Regina William, The Edge
Wednesday, 14 April 2010

 Financial Status Poser

CM asked to explain company’s hefty liabilities

CHIEF Minister Lim Guan Eng has been asked to explain the financial status of Taiyo Resort (KL) Bhd that will manage the Bukit Jambul Country Club (BJCC), which Gerakan claims has reserves of about negative RM50mil.

Its political caucus secretary Mark Ooi also claimed a search conducted on its parent company Taiyo Resort Development (M) Sdn Bhd showed that it had current liabilities of RM114,227,770, losses before tax of RM19,274,956 and losses after tax amounting to RM19,587,956.

“Since the financial status is an important factor for Lim for awarding the management of BJCC, he thus must explain the financial status of both companies,” he said.

He was speaking to reporters at the state assembly following the opening of the first sitting of the 12th Penang State Legislative Assembly’s third session yesterday.

Taiyo Resort (KL), which secured a 20-year contract worth RM80mil to manage BJCC after beating six other bidders through an open tender exercise last year, has guaranteed a return of at least RM1.3mil annually from its management of the club.

Ooi said since the search only provided limited information, it would be impossible to know the financial status of the company.

“Gerakan was also informed that there were other companies that were recommended by Island Golf Properties (IGP), a subsidiary of Penang Development Corporation (PDC).

“However, when they were sent for endorsement at PDC, they were turned down,” he said.
Ooi added that Lim should add a clause for a performance bond before signing the agreement with the company instead of stating that legal action would be taken against the company for damages if the company fails to generate the guaranteed return annually.

The Star,Tuesday May 4, 2010

Taiyo financially sound to manage BJCC, says owner 
 Tycoon: Taiyo Resort will improve BJCC 

GEORGE TOWN: Taiyo Group owner and managing director Datuk Euro Sakamoto on Wednesday, May 5 said the group is financially sound to undertake the management of the Bukit Jambul Country Club (BJCC), which is owned by Penang Development Corporation's (PDC) subsidiary Island and Golf Properties (IGP) Sdn Bhd.

Pursuant to a tender process carried out by IGP earlier this year, Taiyo was awarded the contract to manage the club.

Speaking on the sidelines of the Penang legislative assembly sitting here yesterday, Sakamoto said the group was capable of managing the BJCC for the long haul and turning it into a better and profitable entity.

He said his experience in golf courses in Malaysia and abroad started in 1975 with his involvement in the construction of the Genting Awana golf course with the late Tan Sri Lim Goh Tong.

Sakamoto also served as the CEO of the Laguna Golf Resort in Singapore and had managed numerous golf

He was responding to media reports that cited Gerakan leaders questioning Taiyo's financial status after checks with the Companies Commission of Malaysia (CCM) that showed the group carried liabilities of RM114 million in 2009.

Sakamoto is the managing director of the Kajang Hill Golf Club which is also owned and operated by Taiyo Resort (KL) Bhd, a subsidiary of the Taiyo Group.

"The deficit of RM114 million is just in the books of the holding company Taiyo Resort Development Sdn Bhd. Taiyo does not owe any banks any money as the investments are all my own, and whatever is shown in our financial statements is due mainly to the depreciation of the ringgit," he said.

"I came here 20 years ago to invest with Japanese currency, but over the years, the ringgit has depreciated to half its value. The loss is huge but it is not in the form of any loans from banks but from myself, which is due to depreciation of investments."

Sakamoto added that the Kajang Hill Golf Club had been making profits of RM1 million to RM1.6 million annually.

"Taiyo owns 200 acres of freehold land which is free from incumbrances and we also have RM100 million in assets. What else do I need to manage the BJCC?

"If the company is in financial trouble, we would not have been approached by machinery suppliers to supply machines for the BJCC," he added.

He said the newspapers which had published the articles questioning Taiyo's financial status would also be referred to its lawyers, as the group's reputation had been tarnished by the negative press report.
courses in Japan, France and England.



Written by Regina William, The Edge 
Wednesday, 05 May 2010 21:44

CM: State subsidiary suffers losses 

GEORGE TOWN: Island Golf Properties Bhd (IGP), a subsidiary of the state-owned Penang Development Corporation (PDC) which operated the Bukit Jambul Country Club (BJCC), suffered losses in some years and meagre profits in others, prompting the state government to outsource the management and operations of the club.

Chief Minister Lim Guan Eng revealed the financial performance of the BJCC at a press conference here on Thursday, April 15.

He compared the terms and conditions with the Japanese company, Taiyo Resort (KL) Bhd, which has been awarded the contract, and the RM2 company L & L Golf Management Sdn Bhd (L & L) which had been endorsed by then IGP chairman Datuk Seri Zahrain Hashim.

The total value of the 20-year contract to Taiyo is RM80 million.

Lim's refusal to endorse L & L's bid is said to have upset Zahrain, who had threatened to quit since last year. Zahrain was appointed chairman of IGP in late 2008.

IGP's profits after tax plunged from RM2.559 million in 2005, to a loss (after tax) of RM1.799 million in 2006 and RM868,473 in 2007. It was back in the black in 2008 with RM730,160 and in 2009 RM206,875 in profits after tax.

"In line with the principles of competency, accountability and transparency, the state government is revealing why L & L's proposal was rejected by the PDC board even though it was fully endorsed by Zahrain.

"I fail to understand why when the tender was called by Zahrain, only one company — L & L — which had been set up just months before the tender was called, had applied while the second tender called by the PDC board attracted seven applications," said Lim.

"Though Zahrain had insisted on the PDC board endorsing L & L for the outsourcing, after perusing the terms and conditions, the PDC board decided to retender the contract as L & L had no experience nor financial backing to undertake the contract.

"With Taiyo taking up the contract for 20 years, the returns to PDC will be guaranteed with RM1.3 million annually for the first 10 years, while the L & L deal was for a contract period of 10+5 years with guaranteed rental of RM218,00 for the first year. Over 10 years, this would be RM7.721 million," he said.

"L & L was also proposing to raise RM10 million via membership sales out of which 70% would go to IGP and the rest to L & L, while Taiyo would not be carrying out membership sales," said Lim.

He said that while Taiyo had the experience of running the Kajang Hill Golf Club, L & L had no prior experience whatsoever.

 

Written by Regina William , The Edge 
Thursday, 15 April 2010 16:26


'RM2 company' endorsed by Zahrain




6 min - 15 Apr 2010


A comparison sheet between Taiyo Resort (KL) Bhd and a 'RM2 company' was given to press members. CM Lim Guan Eng told the media that initially, Zahrain had endorsed and recommended the 'RM2 company' be awarded the tender for the management of Bukit Jambul Country Club.


The 'RM 2 company' was the only company that participated in the first tender. However, when a re-tender was called, seven applicants were received and three were shortlisted.  



Related post:

BJCC management fiasco: 'Outsourcing not the fair way', Golf truly a walking game!

 BJCC Golf Club management Fiasco: challenges members to leave! Would Guan Eng Intervene?

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Tun Dr Lim Chong Eu Hightway, a tribute to him, holds ... 
Farewell, reflect and learn from Dr. Lim Chong Eu, father ... 

Pretty squashed egos

PGS stands for the Pretty Girl Syndrome, which some beautiful girls suffer from. Not all beautiful females suffer from this syndrome but I’m sure most guys have met our fair share of women who suffer from some form of PGS.

ONE theory that I’ve always promoted to my friends is my PGS theory. Please don’t get me wrong. I am not a Vietnam War veteran, and I have not experienced life to its fullest but let’s just say I have some stories to share.

PGS stands for the Pretty Girl Syndrome, which some beautiful girls suffer from - these girls think that “if I’m pretty, then I usually can have my way, or get out of trouble or tilt the scales in my favour”.


The symptoms obviously are - being extremely attractive, used to getting their way all the time, dislike the word “NO”, and are used to people dancing to their every whim and fancy.  They also have an ego the size of Texas, but act as if they are as humble as Mother Teresa. Sounds familiar?

I am sure many decent gentlemen have been fooled and given the run around by members of the PGS club, and I am also certain there are many girls who have been passed up for promotion or lost career opportunities because the boss chose the more attractive candidate.

I am sure you are expecting me to say, “What goes around comes around” and tell a nice story that will make one feel good or even vindicated.

Sorry folks, not today. Today, I am going to tell you that God has a funny way of teaching people humility and respect. Recently, I had the privilege of being the television host for the Miss Universe Malaysia 2010 contest. My job was to conduct pre and post audition interviews for each contestant.

The selection process was quite straightforward – walk in, fill in some personal details, answer some basic mini essay questions and impress a panel of four judges with her winning personality.

However, the final part was the most challenging, as each girl need to face the judges - comprising actor Hans Isaac, radio man Phat Phabes, 2004 Winner and National Director Andrea Fonseka and Julia Dolmotova, a Russian-born professional who has substantial experience in beauty brand marketing.

All judges were looking for candidates who were attractive, had a pleasant personality, good communication skills, intelligence and the X-Factor.

The word X-Factor sounds ex­­­tremely grey but in the entertainment world, it is about having the ability to turn heads and capture an audience. The judges’ job was to look for that big X-Factor which I am sure many of the girls thought they had.

Prior to the individual auditions, I asked many of the candidates what their main strengths were. Some of the over-confident girls answered, “I am confident, beautiful and humble. I have just what it takes.”

When I probed further and asked if that could be misconstrued as “slightly arrogant”, most of the responses was a very confident “No”.

I think they forgot what the word humble means.  In those moments, I wanted to place a PGS tag around their necks to give the judges a bit of a heads-up on what to expect.

But a colleague quickly whispered in my ear, “Just you watch, they have no idea that they are about to enter the lion’s den”.

In this type of situation, warriors fight and prove their worth, or get eaten alive. She will get eaten, but which lion will bite the hardest? The judges tore these girls apart. It was not done using the Simon Cowell method but rather the honest truth.

Hans, Phabes and Andrea used a more diplomatic approach but Julia was more direct. “NO, you don’t have it, you should do something else. You are not ready; you are not beauty queen material.” Talk about reality check.

The judges also said that some of them did not get shortlisted because they did not respect the com­petition. According to the judges, some of the girls did not come prepared, looked like they had just come from a nightclub and had the mentality that looks alone could get them through.

One judge stressed, “We are looking for a beautiful, ambitious, well-informed lady who carries herself well. That is what people sometimes forget.”

To sum it up, they are looking for someone who has class and poise. This goes to show that while there are many beautiful women in the land of Malaysia, classy women do not grow on trees.

Let this be a reminder to us all that looks can only get you so far. It can open doors but you also need skills and knowledge to keep the door open. If not, you will just be known as a “dumb blonde”, a tag which is very hard to shake off.

I am always reminded about what my friend once told her young and beautiful sister.  Her ‘big sister’ advice was that, “Even though God gave you a huge advantage with good looks, if that is all people remember you for, then you are easily forgotten.”

This friend stressed to her sister, “If you have the looks, then make sure you have the brains to go with it.” Girls who have PGS start their day by singing the song, “Mirror, mirror on the wall, who’s the fairest of them all?”

Well, I suggest they change their tune to, “Mirror, mirror on the wall, do I have the skills to do it all?”
And if I were the mirror, I would answer, “No, but please do something about it!”

A DIFFERENT SPIN
BY BEN IBRAHIM


> Ben Ibrahim is a TV host, MC and writer. He has hosted shows ranging from The Breakfast Show to the 2008 Olympic Games. For more information about Ben, log on to www.benibrahim.com



Monday, 3 May 2010

Some common-sense thinking on yuan

RECENTLY, the United States postponed its condemnation of China as a currency manipulator, pending negotiations on whether China will appreciate its yuan. Note the United States has raised hell about somebody’s exchange rates before.

Remember “Japan Bashing” when Japan’s trade surpluses allegedly implied an undervalued yen? Trade tensions ensued, Japan occasionally acquiesced, and the yen appreciated. And appreciated – 23% in 1971-73; 37% in 1977-78; 49% in 1985-87; and 20% in 1993-95. Yet the “problem” remained. Japan still had the largest bilateral surplus in 1995 – but the bashing stopped. By then, the Japanese economy was on its knees, trapped in its lost decade.

Was the ever-appreciating yen a major contributor to Japan’s economic collapse? No consensus yet, but Stanford economist Ronald McKinnon ties the “syndrome of the ever-rising yen” to Japan’s deflation trap. Whatever the final consensus, common sense dictates skepticism attends a solution that never solves the “problem.”

Think as follows: Suppose appreciation unwinds the surplus; we get bashing, cave-in (appreciation), surplus unwound, End of Story. But, suppose the surplus remains! Then a destructive dynamic is unleashed, whereby bashing equals cave-in equals unresolved surplus setting up expectations of more and more bashing and cave-ins – as long as the surplus is not resolved! The pressure on the currency then never quite stops. Bashing is a political weapon that is itself a significant problem. Now, China’s story.

In 1994, China fixed its yuan at 8.68 per dollar to stabilise a high, volatile, inflation that had reached 20% annually. It worked. Inflation fell to track US inflation. During the 1997-98 Asian crisis, China stuck to the policy despite pressure to devalue, earning itself policy credibility. After the crisis, financial stability allowed producers to focus on real improvements – productivity, quality, cost cutting. The country utilised its abundant labour to become competitive in consumer manufactures, while the advanced economies specialised in capital intensive production – standard economic theory.

So, what’s not to like?

Hordes of rural Chinese labour flooding into world markets to rise from unrelenting poverty. Hordes of US working families buying cheap consumer goods that raise living standards.

What’s not to like?
 
Enter US special interests! US mercantilists and their political, academic, and media allies point to China’s surpluses with an old playbook – currency manipulation! Undervalued yuan! Enter China-bashing! In March 2005, Congress threatened a 27.5% tariff. China acquiesced and the yuan appreciated 22% over three years, but the surplus widened! Another 20%-40% needed, came the experts! Sounds familiar? How does another Asian economy deal with the thuggish return of an 800-pound economic gorilla? First, DO NOT CAVE!

Reasons why China should not cave

Cave-ins set up a destructive dynamic: As noted, a cave-in is counter-productive and could lead to continual pressure on the currency and more economic problems.

Argument has no merit: Why is the yuan undervalued now, not in 1994? Why didn’t the United States protest “currency manipulation” then? Because the policy was harmless until China became too competitive for US special interests! Let’s simplify matters. Suppose Google creates a phone to compete with Apple’s iPhone. Business is slow but through innovation, cost cutting, Google makes a better product at lower price. Apple lobbies its politicians who threaten Google with legislation unless it raises (appreciates) its price and become uncompetitive or less competitive! The argument has no merit!

Fixed exchange rates are not currency manipulation: The special interests demonise fixed rates as currency manipulation, but fixed rates were prevalent and beneficial in history! They insist that the very operations of fixed regimes – central bank buying/selling of foreign exchange to maintain the fixed rate – is proof of “currency manipulation” since it prevents currencies from reaching free market equilibrium! By that criterion, almost every country currency manipulates because most either fix or have managed floats. Thus, the criticism is feckless, asserting its conclusion, rather than arguing why free floats are best for developing economies, not fixed or managed floats.

Free float is not right for China: Exchange rates today, under liberalised capital accounts, are forward-looking asset prices (like stock prices) driven by current and expected future fundamentals – news, sentiments, even bubbles. Thus, a free float will deliver trade balance (or unwind a surplus) only if foreign exchange demand mainly reflects import demand. But import demand is only a tiny fraction of foreign exchange demand, which reflects mostly asset flows (hedging, investment etc). Instead of trade balance, a free float will likely just introduce new problems of exchange volatility for China, with its yet thin financial markets.

Sustained surpluses do not imply appreciation immediately required: No theory suggests such a rigid connection. People run life-long deficits with their grocers – no depreciations required! Historically, Britain ran large surpluses with the United States – with no attendant hysteria for appreciation or else! Why?

Trade balances are macroeconomic phenomena: a means of shifting consumption/investment profiles over time through borrowing or lending to the world. They are simply more significant than whether certain special interests are unhappy with the exchange rates they face.

Caving would not solve the surplus but could cause deflation: As macroeconomic phenomena, trade surpluses will fall only if a country’s excess of savings over investment falls. But appreciation alone cannot ensure that. Falling exports from appreciation may cause incomes/savings to fall, but investments (and imports) could also fall. And if the surplus does not respond, as during Japan Bashing and in 2005-08 for China, a cave-in could set off the destructive dynamic of more expected cave-ins; and investments could easily move abroad. If China caves, its surplus likely remains but it falls into recession.

What Should China Do?

First, ignore the bashers and look inwards – will continuing current policy add great risks to asset/goods inflation or over-exposure to one borrower?

Second, hire a top US public relations firm to argue its case, reverse China’s role as an economic piñata in the US media.

Third, insist the US reforms its Social Security/Medicare/tax systems to incentivise savings.

Fourth, insist that bashing ends and make sure any policy revision cannot be interpreted as a cave-in or loss of control over China’s own economic destiny.

Comment by Dr Lim Ewe Ghee

A graduate of Yale University and the University of California, Davis, the writer is a senior research fellow at the Center for Policy Research and International studies (CenPRIS), Universiti Sains Malaysia (USM). Previously, he was senior economist at the International Monetary Fund, Washington, D.C. The above are solely the views of the researcher, and do not necessarily represent the views of CenPRIS or USM.