Rethinking housing maintenance charges: KPKT’s pay-per-use proposal

 Striking the right balance to make housing affordable amid rising costs

By Sulaiman Saheh 

The Ministry of Housing and Local Government (KPKT) has recently unveiled a proposal to introduce a pay-per-use model for maintenance fees in future affordable housing developments. Spearheaded by Minister Nga Kor Ming, the initiative aims to reduce the financial burden on residents by shifting from fixed monthly maintenance charges to a usage-based maintenance fee system. This is a significant departure from the traditional strata living model and has sparked concerns about its potential benefits weighing against its drawbacks. The proposal warrants further studies to identify the specific contexts and the actual needs between various target markets, with a keen eye to weigh its risks and mitigation measures before its widespread implementation.

The pay-per-use model is a key component of KPKT’s broader Reformasi Perumahan agenda, which seeks to modernise Malaysia's housing sector. The ministry's intentions are centred on promoting financial equity, encouraging responsible use of shared facilities and improving affordability, particularly for first-time homebuyers in the B40 and M40 income groups. By tying costs directly to usage, the model intends to ensure that residents who rarely utilise amenities like swimming pools or gyms are not subsidising those who use them frequently. According to the Minister of Housing, this approach is also aligned with the Malaysia MADANI and UN-Habitat goals of promoting sustainable urban development, as the tracking of usage can lead to more mindful consumption of resources and a reduction in wastage. The pilot project for the concept will be implemented for the Rumah Bakat Madani project in Penang by SkyWorld Pearlmont. It features a pay-per-use clubhouse with various recreational facilities like an infinity swimming pool, pickleball and badminton courts, a children’s playground and gyms that are accessible via tracked access cards.

Positive feedback

Arguments in favour of the proposal highlight its potential for cost efficiency and transparency. Residents who do not use shared amenities would see a direct reduction in their monthly maintenance charge expenses, which could make home-occupation and ownership more accessible. The use of digital access cards provides clear, auditable records of facility usage, which could improve trust and accountability in property management. Furthermore, the model offers developers a degree of customisation, allowing for tiered access or optional packages that cater to different resident demographics. There are some who are looking at the concept’s adaptability for various types of stratified buildings, from affordable housing to commercial properties.

Not without critics

However, the proposal is not without its critics. A major concern is the potential for community fragmentation that could jeopardise the spirit of communal living. Shared spaces are traditionally seen as crucial for fostering social cohesion and interaction among residents. Monetising access to these areas may discourage their use and, in the long run, weaken the sense of community. Another significant challenge is operational complexity. Implementing and managing robust access card systems, billing platforms and usage audits would add a layer of administrative overhead that could be costly and open to disputes among residents. Joint Management Bodies (JMBs), Management Corporations (MCs) and property managers need to address this added layer of complexity by ensuring transparency, fairness and consistent maintenance across both open-access and paid facilities. Overcoming such challenges lies in maintaining clear communication with residents regarding the pricing structures, usage policies and access rights to avoid misunderstandings or perceptions of inequity. Managers must also ensure that paid-for amenities remain in excellent condition to justify the additional cost while simultaneously upholding the cleanliness and functionality of common areas that are freely accessible to all. This dual responsibility can strain operational resources and require more sophisticated tracking, billing and maintenance systems. Moreover, balancing the expectations of paying users with those of non-paying residents - especially in shared environments - demands careful policy design and proactive community engagement to prevent division or dissatisfaction.

There are also valid equity concerns, as families with children or elderly residents may rely more heavily on shared facilities like playgrounds and community halls, potentially leading to higher costs for those who need these amenities most. Critics also fear the risk of underfunding for essential, non-usage-based maintenance, such as lift upkeep, security and waste disposal, which could suffer if the revenue from pay-per-use facilities is insufficient. This is even if there were to be a multi-tier maintenance charge regime with a differentiation between core facilities and services like lifts and open-access basic communal facilities and optional-access facilities like function halls, badminton courts and gymnasium. 

Challenges to overcome

While the technological aspects of the model are feasible, successful implementation hinges on a number of factors. A robust infrastructure for tracking and billing is essential, as is a clear governance framework that defines usage and fee calculation. Legal clarity is also paramount, as the model may necessitate amendments to existing laws that relate to strata management to accommodate variable charges and modes of billing. While the pay-per-use model could potentially address concerns about fairness and affordability, particularly for residents who do not utilise all amenities, it would require amendments to the Strata Management Act 2013 (SMA) or other relevant legislation. At present, Joint Management Bodies (JMBs) and Management Corporations (MCs) are legally obligated to collect maintenance fees based on share units, which are assigned to each property. This means a fixed monthly charge is applied to all owners, regardless of their usage of shared facilities. As such, the existing laws would have to be amended.

The long-term risks are also a major consideration, especially if the proposed model results in a lower collection of funds due to a significant portion of owners or residents opting to reduce their usage of these optional access-based facilities. Underfunding could lead to a decline in the quality of facilities and with time, the cost for repairs can snowball, hence forcing JMBs/MCs to re-prioritise their maintenance budget. Consequently, the decline in quality of facilities will risk a decrease in property values – this would threaten property owners’ asset preservation and long-term financial well-being. Arguably, the pay-per-use fees could be inflated to compensate for this or even the opening of such facilities to non-resident visitors. The downside to this is that we could see wealthier residents start monopolising premium amenities while lower-income residents are priced out or security erosion due to re-aligned policy changes to open access for public use. Indirectly, it has relinquished the exclusivity of use amongst residents – unless it is at the onset, during the purchase consideration, buyers are made aware of such provisions and policies. Either way, this would further erode the inclusive spirit of community living, hence risking a socioeconomic divide.

In conclusion, KPKT’s pay-per-use proposal represents a progressive and innovative attempt to address the challenges of urban living and affordability in Malaysia. It promises greater financial flexibility and transparency but also raises serious questions about equitability, community cohesion and long-term sustainability. Before the model is finalised and tabled for implementation, it is crucial to conduct a thorough evaluation of the concept, engage in extensive dialogue with all stakeholders and explore hybrid models with transparency to homebuyers before their decision to purchase. A comprehensive engagement and proper planning are needed with the long-term effectiveness and implications in check. The concept may not be a one-size-fits-all. It requires a multi-faceted consideration from the end-user needs profiling, built environment and layout design involving potentially separated-but-interlinked plots planning and ultimately the long-term management for a harmonious community living and the sustenance of the property’s value as a place of residence and investment. A robust regulatory framework and comprehensive public education campaigns will also be vital to ensure that this groundbreaking initiative strikes the right balance between financial sustainability and social equity, paving the way for a new era of urban living in Malaysia.

Sulaiman Akhmady Mohd Saheh is the director of research and consultancy services at Rahim & Co International.

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Penang to roll out second phase of iSejahtera payments from Aug 6,2025

 

GEORGE TOWN: The Penang government will proceed with the second phase of iSejahtera payments for this year via electronic funds transfer to 9,405 recipients from Wednesday (Aug 6).

State social development, welfare and non-Islamic affairs xommittee chairman Lim Siew Khim (pic) said the disbursement, amounting to RM1,721,300, reflects a continued commitment to the people’s welfare.

She said Phase 2/2025 payments will only be made to new applicants who registered before June 30 each year, while applications received after that date will be processed for Phase 1/2026.

"For Phase 2/2025, the breakdown and number of recipients are as follows: the senior citizen appreciation schene covers 7,187 recipients totalling RM1,437,400; single mother assistance is for 317 recipients, amounting to RM317,000;

"The golden housewife appreciation scheme involves 1,280 recipients totalling RM1,280,000; and aid for persons with disabilities will be given to 621 recipients amounting to RM124,200,” she said in a statement on Tuesday (Aug 5).

Lim said the state government has disbursed RM53.83mil to 285,816 recipients across various categories under Phase 1 and Phase 2 from January to July.

This included RM41,987,600 for the senior citizen appreciation scheme to 209,938 recipients, and RM1,064,400 for single mother assistance to 10,644 recipients.

"Other categories comprise the golden housewife appreciation scheme with RM4,423,100 for 44,231 recipients; RM3,121,600 for 15,608 persons with disabilities; the Anak Emas one-off payment of RM540,200 to 2,700 recipients; and the one-off death benefit contribution totalling RM2,695,000 for 2,695 recipients,” she added.

She urged all applicants to promptly update their bank account details to ensure smooth disbursement for Phase 1/2026.

Further information on the iSejahtera programme can be obtained by contacting the Kemara Unit at 04-650 5699 / 5700, visiting the iSejahtera office on Level 44, Komtar, during working hours from 9am to 5pm, or registering online via the official portal. – Bernama

How goats changed his life

Breeding success: Lee (centre) with some of his animals at the Wild Run last year. Lee’s farms boast a range of activities – goat, deer and fruit farming as well as vermicomposting, fish breeding and cold storage facilities.

“Farming is about resilience. Yes, we had losses, but with some government assistance and a lot of hard work, we bounced back.” Jason Lee Nyuk Soon

KOTA KINABALU: What began as an “accidental” purchase at a local market has blossomed into one of Sabah’s most inspiring agricultural success stories.

Jason Lee Nyuk Soon, a trained accountant, never planned to become a breeder. He stumbled into livestock farming purely by chance.

More than a decade later, he is being celebrated across the nation after clinching the prestigious Anugerah Perdana and Anugerah Penternak Jaya, winning RM60,000 and RM20,000, respectively.

He received both awards from Prime Minister Datuk Seri Anwar Ibrahim during the National Farmers, Breeders and Fisher­men’s Day 2025 celebrations here on Sunday.

Sharing his journey, Lee said he was visiting a weekly tamu (traditional marketplace) in Kota Belud in 2014, merely to see what was available.

He came across an elderly couple trying to sell a pair of goats.

“They said they needed money urgently, so I bought the animals. The next day, the couple called and sold me another pair,” said the 49-year-old.

At the time, Lee kept the goats as a hobby behind his parents’ house in Kg Tombovo, Putatan, using simple fencing and infrastructure.

But as the herd grew, so did his interest and commitment.

He built more shelters and began learning breeding techniques from scratch.

His hard work paid off by the third year, when he recovered his initial RM500,000 investment.

Encouraged by the results, he expanded operations to nearby Kg Duvanson, where he now runs a larger facility complete with staff quarters, a feed processing plant and training rooms.

One of Lee’s most innovative moves was introducing vermicomposting by using earthworms to convert goat waste into organic fertiliser.

“We used to sell raw manure at RM10 for a 20kg bag. Now, we sell the vermicompost at RM5 per kg,” he said, adding that he can produce up to five tonnes of the organic compost each month.

The fertiliser is now used by durian and avocado farmers throughout Sabah.

Remarkably, worm farming now contributes nearly 50% of his Borneo Integrated Farm’s total income.

Today, Lee’s farms boast a range of activities – goat, deer and fruit farming as well as vermicomposting, fish breeding and cold storage facilities.

He has also set up cold storage outlets in Putatan and Keningau, selling fresh goat’s milk, meat and other locally produced goods.

Controlling the entire chain from farm to table, he said, ensures quality, freshness and better returns for the hard work.

Lee’s farms also employ odour-­control techniques such as fermented silage feeding to minimise smells, which is important as the facilities are located near residential areas.

Despite his success, the journey has not been without setbacks.

Lee said his farms had been hit by floods multiple times, with the most recent incident occurring in February.

Yet, he remains undeterred.

“Farming is about resilience. Yes, we had losses, but with some government assistance and a lot of hard work, we bounced back,” he said.

For Lee, the key to success lies in what he calls the three Ps – patience, passion and perseve­rance.

Although he did not pursue a career in his field of study, Lee said his accounting background has been invaluable in managing finances and growing the business sustainably.

“Cash flow is king. You need to reinvest wisely, track your spending and avoid leaking money,” he added.

Lee said he hopes his story can shift mindsets and encourage more young people to explore careers in agriculture.

He also attributed his success to his wife, family and God for their support and guidance

-  By SANDRA SOKIAL,

New medical innovations to address rising cancer burden in Malaysia

 

The Hospital Picaso medical team is showcasing a cutting-edge, minimally invasive therapy for patients with prostate cancer 

Prostate, pancreatic and liver cancers remain among the most pressing health challenges in Malaysia, with late-stage diagnoses continuing to impact patient outcomes.

Prostate cancer is one of the most common cancers affecting Malaysian men, with many cases detected only at advanced stages.

Liver cancer is also one of the most common cancers among Malaysians, while pancreatic cancer remains one of the deadliest due to late detection and limited treatment options.

In Petaling Jaya, Hospital Picaso – a dedicated centre of excellence for advanced surgery and integrated oncology – is responding to these challenges with next-generation treatment options.

It is the leading hospital in Malaysia to offer Irreversible Electroporation (IRE), a non-thermal ablation technique that targets cancer cells while sparing healthy tissue.

This innovation represents a significant advancement in prostate cancer care, giving patients more precise options with fewer long-term complications.

“This technique gives us a targeted way to treat prostate cancer, while reducing damage to surrounding structures,” said Hospital Picaso consultant urologist Datuk Dr Loh Chit Sin.

“This treatment can help patients to retain urinary continence and preserve erectile dysfunction.

“These outcomes address two of the biggest concerns men face – maintaining quality of life while seeking effective care.”

Known as Irreversible Electro­poration (IRE), this technique utilises high-voltage electrical pul­ses to destroy cancer cells without the use of heat.

This method allows treatment near delicate structures, such as nerves, ducts and blood vessels, making it suitable for tumours in the prostate as well as liver, pancreas and kidneys.

It reflects a more personalised approach to cancer care that supports both survival and post-­treatment well-being.

Building on this advancement, Hospital Picaso is also introducing the Electrochemotherapy (ECT), further expanding its interventional oncology capabilities.

ECT combines short electrical pulses with localised chemotherapy to enhance drug absorption directly into tumour cells.

It is particularly effective for difficult-to-access or previously unresponsive tumours in the liver and pancreas.

By concentrating treatment where it’s needed most, while limiting systemic side effects, ECT offers new hope to patients with limited options.

New technologies are expanding what’s possible but early detection is still key to better outcomes.

“When we detect prostate, pancreatic or liver cancer early, we’re able to offer options that are less invasive and more targeted,” said Dr Loh.

“With techniques like Irreversible Electroporation and Electrochemotherapy, we’re not just treating the disease – we’re giving patients more control over their treatment journey.”

At Hospital Picaso, these innovations represent more than medical advancement.

They mark a shift in how cancer care is delivered – giving patients better options, making treatments more precise and helping people live more fully during and after recovery.

KKLIU: 2321/EXP 31.12.2027

Rise of the machines in China

   

   

 When Sun Huihai first began working at a factory in the southern manufacturing belt of Guangdong some 13 years ago, his colleagues were all humans.

Now, they are joined by more than 200 robots which can work around the clock, seven days a week, to help produce air-­conditioners for home appliances giant Midea.

Rows of bright orange robot arms whir at all hours of the day, fishing freshly pressed plastic parts out of hot metal moulds and onto a long conveyor belt.

Driverless robots with blinking lights store these parts in a multi-­storey warehouse, and later take them to be assembled into units that are sold in China and around the world. 

The number of robots put to work on the factory floor increases every year, said Sun, 37, who heads the plant’s engineering department.

“Every day, we think about how to upgrade and make manufacturing here more intelligent,” he said.

Scenes like this have become more common across China, as the “factory of the world” turns to robotics to sustain and turbocharge its manufacturing juggernaut.

Over the past decade, the number of industrial robots on China’s factory floors has increased more than six times to over 1.7 million, as companies grappled with ri­­sing wages and a shortage of workers willing to staff production lines.

China now has the world’s third-highest density of robots in its manufacturing industry, trailing South Korea and Singapore in first and second place respectively, according to the International Federation of Robotics’ figures for 2023, the latest available.

Their deployment is poised to increase further as China conti­nues its transition from low-­value, labour-intensive production to advanced manufacturing – a national priority.

Policymakers in China, wary of the hollowing out of industries which can occur when countries get richer, have long pushed for greater automation to keep factories competitive.

Factories in China pumped out nearly 370,000 of industrial robots in the first half of 2025, up 35.6% from the previous year, according to figures from the National Bureau of Statistics.

But as robot adoption picks up pace, one question that arises is: What will happen to the more than 100 million workers whom China’s manufacturing sector employs?

Academics Nicole Wu and Sun Zhongwei, who interviewed and surveyed factory workers in southern China just prior to the Covid-19 pandemic, found that these individuals were not too concerned about robots just yet.

“Contrary to the more pessimistic assessments of automation, most manufacturing workers in Guangdong – who are buffered by steady increases in demand and a chronic labour shortage – appear to be unfazed by technological change at present,” they wrote in a paper published this year.

Back at the Midea factory, Wang Liangcai, 26, an engineer, believes that his job is safe from automation for now.

“Equipment still needs to be maintained, it can’t do so itself,” he said.

“But if you think about the long run ... we also don’t know how things will be.” — The Straits Times/ANN

Economic highlights of the 13th Malaysia Plan 2026-2030

 

Prime Minister Datuk Seri Anwar Ibrahim received the 13MP document from Second Finance Minister Datuk Seri Amir Hamzah Azizan at Seri Perdana, Putrajaya. - Photo: AFIQ HAMBALI / Prime Minister's Office

KUALA LUMPUR: The following are the economic highlights of the 13th Malaysia Plan (13MP) 2026-2030 which was tabled by Prime Minister Datuk Seri Anwar Ibrahim in Parliament today, with the theme "Melakar Semua Pembangunan” (Redesigning Development).”

- Investments of RM611 billion required to successfully implement 13MP

- Development allocation from the government is estimated at RM430 billion, with RM227 billion to be channelled to the economic sector.  

- Gross domestic product (GDP) growth is targeted at 4.5-5.5 per cent annually, to be led by domestic demand, particularly private consumption and investment 

- Average real private investment is expected to grow by 6.0 per cent per year, while average real public investment is projected to grow by 3.6 per cent per year. 

- RM120 billion will be allocated for national development investment for 2026-2030. 

- The federal government's fiscal deficit is expected to gradually decrease to below 3.0 per cent of GDP, with government debt not exceeding 60 per cent of GDP.  

- The average inflation rate is expected to remain stable between 2.0 per cent and 3.0 per cent annually. 

- Gross National Income (GNI) per capita is targeted to increase to RM77,200. 

- Gross exports are expected to grow by 5.8 per cent annually, with broader trade opportunities.

- Gross imports are expected to moderate to 6.1 per cent per year from 2026-2030, compared to 14.4 per cent during the first four years of 12MP. 

- The trade balance is expected to remain positive at RM116.3 billion, with a current account surplus of 2.2 per cent of GNI by 2030. 

- Malaysia aims for Electrical & Electronics product exports to approach RM1 trillion by 2030. 

- The government targets to increase halal export value to RM80 billion, with the halal industry contributing 11 per cent to GDP by 2030. 

- The manufacturing sector is projected to grow by 5.8 per cent per year. 

- RM61 billion will be allocated for development projects under public-private partnership (PPP).

- The services sector is projected to grow by 5.2 per cent per year. 

- The agriculture sector is expected to grow by 1.5 per cent per year. 

- The mining and quarrying sector is projected to expand by 2.8 per cent annually from 2026-2030, supported by increased production of natural gas and crude oil. 

- By 2030, Malaysia aspires to become a high-income nation and be among the world’s top 30 economies. 

- Malaysia must rise quickly to lead in technology and produce world-class ‘Made by Malaysia’ products and services by 2030. 

- Malaysia sets a direction to lead the Southeast Asian economy in artificial intelligence (AI), digital technology, and renewable energy, aspiring to be an influential global player. 

- The National AI Action Plan 2030 will drive talent development, research, and commercialisation of technology to support broad AI adoption. 

- Implementation of NIMP 2030 (New Industrial Master Plan), NSS (National Science Strategy), and NETR (National Energy Transition Roadmap) will be intensified in 13MP to drive inclusive and sustainable economic growth. 

- The government is considering nuclear energy as one of the clean, competitive, and safe energy sources. 

- Malaysia targets to increase the share of installed capacity to 35 per cent by 2030 from 29 per cent at present.

- The government is committed to accelerating the development of the rare earth industry, in cooperation with state governments.

- The government will strengthen the green economy through various initiatives. 

- Focus will be placed on strengthening economic integration through Free Trade Agreements (FTA) and resuming Malaysia-EU (European Union) negotiations. 

- Malaysia’s participation in FTAs such as Regional Comprehensive Economic Partnership (RCEP), Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and Malaysia-Turkey FTA (MTFTA) will be enhanced to expand markets and strengthen trade relations. 

- Malaysia will continue to leverage BRICS and ASEAN to reduce dependency on existing trade partners. - Bernama 

Related stories:

• Reforming semiconductor industry, revitalising global services among 13MP focus areas
• First and last-mile connectivity to improve under 13th Malaysia Plan
• Extra RM20bil allocated for flood mitigation plans nationwide, says Anwar
• Minimum wage to be expanded to cover grads, semi-skilled workers, says PM
  
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Cut red tape, let business grow’, 13MP must clear the way for private sector growth, say economists

https://rightwayspro.blogspot.com/2025/07/cut-red-tape-let-business-grow-facebook.html

Google is reaping rewards of its unfair AI advantage

 

Sundar Pichai, Alphabet’s CEO. — Bloomberg

WITH two billion monthly users in 200 countries, Google’s AI Overviews can claim to be the most popular generative artificial-intelligence (AI) product yet released to the public.

The short summaries generated by the company’s Gemini AI model have turned Google from search engine to answer engine, settling the nerves of investors who were worried that ChatGPT was going to smash Google’s business model to pieces.

Then again, to describe those billions as “users,” as parent company Alphabet Inc did when announcing its quarterly earnings last week, is perhaps disingenuous.

No one consciously uses AI Overviews – it’s just there when users perform a regular search on Google, something billions of them have done several times a day for two decades.

That’s one key advantage Google has over its competitors: People already associate the service with finding things out.

The company has every right to capitalise on that reputation, one it built off the back of genuine innovation and quality (though, admittedly, it was later solidified with illegal multibillion-dollar deals to prevent competition).

Google’s second advantage with AI Overviews, however, warrants further scrutiny.

Like other generative AI tools, the feature draws heavily from content that Google does not own but is available on the open web.

Summarised answers are synthesised from one or more sources into a rewritten piece of information.

That’s useful for users; it saves them a click.

But it’s devastating for content creators, who lose a would-be visitor and the revenues that follow.

Startling Pew Research data released last week suggested users were considerably less likely to click through to websites if presented with an AI Overview, as is increasingly the case.

One in five searches in a March 2025 sampling contained an AI Overview, a frequency that rises to as high as 60% if the queries are longer or contain the bread-and-butter words of journalism: who, what, where, when or why.

Google has pushed back against the methodology of the Pew study, saying its dataset – 68,879 searches by 900 US adults – was too small to be representative. Other AI chatbots offer the same kind of functionality, of course.

But in those cases, content publishers can block these companies’ “crawlers” if they wish to do so by adding a line of code that acts as a digital bouncer at the door.

That approach doesn’t work with Google, however, because blocking its AI crawler means also blocking a site from Google’s search results as well – a death sentence for any website.

Dominant position

Google is leveraging its dominant position in one industry to force success in another.

It’s monopolistic behaviour and something that should be addressed immediately as part of the remedies being devised as part of the antitrust trial it lost last year.

This is about taking away Google’s cheat code.

“Google still thinks they’re special and that they don’t have to play by the same rules that the rest of the industry does,” Matthew Prince, chief executive officer of Cloudflare, told Bloomberg News in an interview last week.

New tool

His company recently launched a tool that would allow publishers to set up a “pay-per-crawl” model for AI use.

It works on crawlers from OpenAI, Anthropic, Perplexity and most others – but blocking Google AI would, again, mean blocking a site from Google’s search engine.

In Google’s defence, the launch of AI Overviews was a move spurred not by a desire to crush the economics of web – which has driven its entire business –but to stop its users from deserting the company in favor of AI chatbots.

“The consumer is forcing them,” Wells Fargo analyst Ken Gawrelski said.

Google was more than satisfied with the status quo, Gawrelski told me, which is partly why the company was beaten to market by smaller AI firms that didn’t need to worry about protecting an existing revenue stream.

Now the fight is on, Google is playing catch-up and doing rather well at it.

It has protected its advertising revenue, which in the last quarter was up 12% to a record-high US$54.2bil compared with the period a year earlier.

Supply constraints

Its AI and cloud business faces supply constraints, warranting an additional US$10bil in capital expenditure, bringing it to US$85bil for the year.

It recently added “AI Mode” to its search engine, which is like AI Overviews on steroids.

The company has barely started to integrate AI across its varied products like Gmail and Maps – the Financial Times noted that 15 distinct Google products have more than 500 million users.

Executives said they will be able to monetise all of these innovations quickly.

The company has less to say about what happens to the businesses that rely on Google traffic to stay alive, in turn providing the content that makes smart AI possible.

The shift is profound: Google’s creation democratised the web, making it possible for an ecosystem of new sites and services to be found and supported.

Now, the company’s strategy is to make it so users need to visit only Google.

“We have to solve the business models for the varying players involved,” Sundar Pichai, Alphabet’s CEO, said in a call with analysts without elaborating.

AI wreckage

Salvaging content creators from the coming AI wreckage begins by forcing Google to relinquish its unfair advantage.

Only then will the company be compelled to enter into reasonable arrangements with content creators to utilise their content, as it has already done with the likes of Reddit.

We can be mildly encouraged by the fact that Google is reportedly seeking out content deals for use within its other AI products. Perhaps this is in anticipation that the unfair advantage won’t last. — Bloomberg

Dave Lee is Bloomberg Opinion’s US technology columnist. The views expressed here are the writer’s own.