Greek Complexity

The argument over Internet freedom

...aka piracy, depending on who you talk to, is fast becoming a hot-potato issue.

Even in sedate Singapore. Entrepreneur Bernard Leong makes his case to the Singapore government as to why they should not enact a law similar to SOPA. You'll find his piece here. He says:

The burden of reviewing every blog post, tweet and video submission is impossible to manage for any company. This is similar to the situation in China, where video sites such as Tudou have to hire people to monitor content uploads 24-7 to ensure that no sensitive political content is uploaded.

SGE‘s opposition against SOPA/PIPA legislation is not focused on freedom of speech arguments which have been brought forward by many digital advocates. You can read about these elsewhere. Our concern is that such legislation has profound implications to our economy.

He later says:

There has been strong resistance against both bills not just from many technology entrepreneurs from the start-up space but also from multi-national companies such as Amazon, Google, Microsoft, Twitter and Facebook.

...meaning that the opponents of such legislation are, as one would expect, those who would suffer most from SOPA-like legislation. Now, The Economist said in their usual forthright style a few weeks ago that:

The bill’s supporters want this [how content should be distributed and paid for] to change as slowly as possible, so they have time to adapt. Opponents want to see more rapid changes in business models to speed up overdue innovation: cheaper pricing in poor countries, more use of on-demand digital services, less exclusivity in distribution, and ultimately, less reliance on selling albums and DVDs. Yet self-interest is at work on both sides: many of the bill’s critics are trying to create just these kinds of business.

A related issue is now boiling over in India. Global Internet companies are in effect being held accountable for things that their users said, even though a law had previously been passed specifically to clarify that Internet companies and other intermediaries could not be held liable for their users' misdeeds (as long as certain conditions were met). See Is India Ignoring its own Internet Protections?.

So who's right? I'd rather focus on the freedom-of-speech argument that Bernard eschews. High-minded? Idealistic? Yes and yes. But that doesn't make the argument any less valid. In fact, focusing on dollars and cents cheapens the issue.

Note also, as The Economist implies, that arguing purely on economic grounds is to pick winners and losers. Who is to judge whether Google's and Facebook's claims are more valid than counter-claims by Newscorp and CBS? On what basis can one pick one side over another?

Taking the freedom-of-speech tack will probably not have much effect in Singapore (possibly the reason Bernard avoids this argument to begin with) but I think this is the right argument as a matter of principle. Possibly the only right argument. It certainly doesn't have the conflict of interest of the economic arguments advanced.

Singapore vs Hong Kong as a business jurisdiction

Link of the day: Singapore as a Holding Domicile for Your China Operations

This piece contrasts the use of Singapore as a location to set up holding companies for Asian operations versus using Hong Kong instead. Mostly about tax but also other matters. Not as boring as it sounds. The article doesn't mention it explicitly but Singapore also has bilateral trade and tax arrangements with India, separate from the India-ASEAN tax treaty. China and HK don't.

Apple is disgusting

There's no denying that my views on Apple's stock price were wrong last February and remain wrong today. The stock is today up about 15% since my prediction of a fall. But Wall Street has also started looking at the company's broader impact on the world, something I mentioned briefly in this post. Take a look at what Henry Blodget says at Business Insider:

Daisey interviews dozens of (former) workers who are secretly supporting a union. One group talked about using "hexane," an iPhone screen cleaner. Hexane evaporates faster than other screen cleaners, which allows the production line to go faster. Hexane is also a neuro-toxin. The hands of the workers who tell him about it shake uncontrollably.

Some workers can no longer work because their hands have been destroyed by doing the same thing hundreds of thousands of times over many years (mega-carpal-tunnel). This could have been avoided if the workers had merely shifted jobs. Once the workers' hands no longer work, obviously, they're canned.

...

If Apple decided to build iPhones and iPads for Americans using American labor rules, two things would likely happen:

• The prices of iPhones and iPads would go up
• Apple's profit margins would go down

Neither of those things would be good for American consumers or Apple shareholders. But they might not be all that awful, either. Unlike some electronics manufacturers, Apple's profit margins are so high that they could go down a lot and still be high. And some Americans would presumably feel better about loving their iPhones and iPads if they knew that the products had been built using American labor rules.

In other words, Apple could probably afford to use American labor rules when building iPhones and iPads without destroying its business.

So it seems reasonable to ask why Apple is choosing NOT to do that.

More: Your iPhone Was Built, In Part, By 13 Year-Olds Working 16 Hours A Day For 70 Cents An Hour

Top 3 myths about immigration

Short and informative video about immigration:

This is about America not about Singapore but I can't imagine the conclusions would be that different for Singapore or anywhere else.

Losing the plot

Here's an excerpt of an email from this morning, suitably censored for public consumption:

Drivers in Singapore are such *** pieces of ***. Robots. Inconsiderate ***. I got on the CTE as usual and it was really jammed at least until Balestier and also behind me (before my on-ramp). Happens sometimes but only for a few hundred metres before clearing up. This time it was like this all the way to the CBD exit at Havelock Road. Ok, at least I could move at 40-50 km/h on my bike past near-stationary cars, but I couldn't work out why it was so jammed. Come out onto Havelock Road and it's even worse. Looked like Bangkok. This is 7 km from the start of my journey! I thought there must be some major problem like a lane closure or something. Keep going, don't see anything. Finally got to Raffles Place, just at the junction with Shenton Way, and I find there's been a minor collision between two cars. No injuries, no great damage even. But the *** *** just *** sit there and create a giant *** traffic jam for the rest of the world during peak hour. The rules are quite clear that if there are no injuries, you must move your vehicle so you don't obstruct other traffic. What's worse is, no one sees this as a problem. The police should be issuing gigantic traffic fines whenever this happens (and it happens quite a bit). People should be yelling at the numbskulls. None of this happens, as far as I know.

Robots was the funniest expletive because it's so true!

Japan has outperformed the US over the last 20 years

Really? So says an op-ed in the NYT. The writer presents some strong arguments to bolster his case, including:

The fallacy of the “lost decades” story is apparent to American visitors the moment they set foot in the country. Typically starting their journeys at such potent symbols of American infrastructural decay as Kennedy or Dulles airports, they land at Japanese airports that have been extensively expanded and modernized in recent years.

America’s growth in recent decades has been overstated by as much as 2 percentage points a year. ... This factor alone may put the United States behind Japan in per-capita performance.

The Japanese are consistently among the world’s earliest adopters [of expensive, new high-tech items]. If anything, it is Americans who have been lagging. 

There are, I think, plenty of other facts he ignores, but this is still interesting to chew on. More: The Myth of Japan’s Failure

Yes, we need more messiness!

Creativity and serendipity depend on it.

What am I talking about? An architect called Aaron Betsky zeroes in on the downsides of Singapore's planning obsession. Yes, it all works but

everything was being planned with such efficiency and with such an eye to latest theories of what makes good urban environment that there was no opportunity for chance, ad hoc activities, or the joy of contrasts.

My office is in the Marina Bay Sands area so I know that Betsky is bang-on with his assessment. Sadly and frustratingly, this is a thread that runs through all of Singapore, not just in urban planning but also, to pick just a few areas, education, the arts, the promotion of entrepreneurship and sports.

This terrific short post tells you more: Singapore's URA: Too much planning? Especially watch for the very funny dig at our bureaucrats' reading habits!

How many Indian Internet users?

Short answer: no one knows. Estimates vary widely according to 45 mn or 121 mn Indians on internet? Who is the bluffmaster?

The article quotes a few people for their views. I am with Alok Kejriwal, who says simply, "Who cares?" For most entrepreneurs, the actual number doesn't matter beyond a point. What matters more is what they do with it. I think India has long since gone beyond that point.

But, at a pinch, I'd have to say that 45 million users does seem to be too low an estimate -- and lo and behold, this estimate (by Comscore) doesn't include users at cybercafes or on mobile phones.

Hiring: venture capital associate

We are seeking to hire an associate to join our South Asia venture capital team. The actual title will depend on the profile of the candidate eventually chosen.

Job description:

• Entry-level investments role but with considerable responsibility, exposure to C-level executives and prospects for growth
• Work across the entire spectrum of investment activity including market analysis, evaluation of investment opportunities, preparing investment proposals, driving legal completion of transactions, reporting on portfolio companies and assisting on exits
• Report to the head of the South Asia team covering India and South-East Asia
• Based in Singapore with some travel

The ideal candidate:

• Undergrad or greater qualifications in engineering, science or related technical disciplines
• Good commercial awareness gained via work experience of 2-5 years
• Basic understanding of financial statements; MBA welcome but not necessary
• Strong cultural understanding of India
• Highly self-motivated, comfortable with ambiguity and exceptional at time management
• Good sense of humour!

Leave a comment on this post with your email address, phone number and a brief description of yourself. Your comment will be seen only by me and will not appear publicly.

No recruiters please.

Seeking telecom salesperson or channel partner

High-growth firm seeks salesperson with telecom background. Must be a self-starter with minimum ten years of experience and extensive contacts with telecom operators in Asia and/or other emerging markets. Channel partners will also be considered. Attractive upside offered including commissions and ESOP. No recruiters pls.