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Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts

Monday, November 27, 2017

Chinese are the unsung heroes of South East Asia, Robert Kuok Memoirs


https://youtu.be/oU0tz-3Uzeg


They are the most amazing economic ants on Earth, ‘Sugar King’ writes in memoir

 Good Chinese business management is second to none; the very best of Chinese management is without compare. I haven’t seen others come near to it in my 70year career. Robert Kuok

The overseas Chinese were the unsung heroes of the region, having helped to build South East Asia to what it is today, said Malaysian tycoon Robert Kuok (pic).

He said that it was the Chinese immigrants who tackled difficult task such as planting and tapping rubber, opening up tin mines, and ran small retail shops which eventually created a new economy around them.

"It was the Chinese who helped build up Southeast Asia. The Indians also played a big role, but the Chinese were the dominant force in helping to build the economy.

"They came very hungry and eager as immigrants, often barefooted and wearing only singlets and trousers. They would do any work available, as an honest income meant they could have food and shelter.

"I will concede that if they are totally penniless, they will do almost anything to get their first seed capital. But once they have some capital, they try very hard to rise above their past and advance their reputations as totally moral, ethical businessmen," Kuok said based on excerpts of his memoir reported in the South China Morning Post .

“Robert Kuok, A Memoir’ is set to be released in Malaysia on Dec 1.

Kuok said the Chinese immigrants were willing to work harder than anyone else and were willing to "eat bitterness", hence, were the most amazing economic ants on earth.

In the extracted memoir published by the South China Morning Post, Kuok, pointed out that if there were any businesses to be done on earth, one can be sure that a Chinese will be there.

"They will know whom to see, what to order, how best to save, how to make money. They don’t need expensive equipment or the trappings of office; they just deliver.

"I can tell you that Chinese businessmen compare notes every waking moment of their lives. There are no true weekends or holidays for them. That’s how they work. Every moment, they are listening, and they have skilfully developed in their own minds – each and every one of them – mental sieves to filter out rubbish and let through valuable information.

"Good Chinese business management is second to none; the very best of Chinese management is without compare. I haven’t seen others come near to it in my 70-year career," he said.

"They flourish without the national, political and financial sponsorship or backing of their host countries. In Southeast Asia, the Chinese are often maltreated and looked down upon. Whether you go to Malaysia, Sumatra or Java, the locals call you Cina – pronounced Chee-na – in a derogatory way," he said.

He added that the Chinese had no "fairy godmothers" financial backers.

"Yet, despite facing these odds, the overseas Chinese, through hard work, endeavour and business shrewdness, are able to produce profits of a type that no other ethnic group operating in the same environment could produce," he said.

Kuok ultimately attributed the Chinese survivability in Southeast Asia to its cultural strength.

"They knew what was right and what was wrong. Even the most uneducated Chinese, through family education, upbringing and social environment, understands the ingredients and consequences of behaviour such as refinement, humility, understatement, coarseness, bragging and arrogance," he said.


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Wednesday, November 22, 2017

Malaysia's economy: stronger but eroding purchasing power

The story is the same everywhere – the rising cost of living has not been accompanied by an increase in wages.

HERE we go again – another set of impressive growth figures. Bank Negara has announced Malaysia’s latest economic growth at a commendable 6.2% in the third quarter of 2017.

The pace of economic growth for the three months up to September was faster than the 5.8% registered in the second quarter of the year.

This growth rate was the fastest since June 2014.

On a quarter-on-quarter seasonally adjusted basis, the Malaysian economy posted a growth of 1.8% against 1.3% in the preceding quarter, according to the Statistics Department.

Malaysia’s robust economic growth has been attributed to private-sector spending and a continued strong performance in exports.

To quote Bank Negara governor Tan Sri Muhammad Ibrahim last Friday: “Expansion was seen across all economic sectors.”

But try explaining this impressive economic growth rate to the average salaried worker struggling to pay his monthly household bills.

Stretching the ringgit is especially great for those living in urban areas, and Malaysia is increasingly becoming urbanised.

The story is the same everywhere – the rising cost of living has not been accompanied by an increase in wages.

Compounding matters is the depreciation of the ringgit, reducing the purchasing power of the ordinary folk. They can’t buy the same amount of food as they used to previously.

Employers are being forced to cut operating costs to match declining profits.

Job security is becoming paramount. Many are fearful of losing their jobs, as companies cut cost to cope with the challenging business landscape.

And the reality is that many companies are not hiring, as evident from the unemployment rate of 3.4%.

The Malaysian Employers Federation (MEF) has cautioned that more people would be out of a job this year due to the current economic challenges.

Apart from the challenging landscape, technology has disrupted several brick-and-mortar businesses, forcing them to change their way of doing business.

According to MEF executive director Datuk Shamsuddin Bardan, economic challenges will compel bosses to review their workers’ requirements.

While official statistics show that the economy is charting a strong growth path, the trickle-down effect is not being felt.

Why is the sentiment on the ground different from what the politicians and officials are telling us? Why is there a disconnect in the economy?

Are the figures released by the government officials more accurate and authoritative compared with the loud grumblings on the ground that are anecdotical in nature devoid of proper findings?

We hear reports of supermarkets and hypermarkets closing down, but could that be because their business model no longer works as more Malaysians turn to online shopping, with e-commerce companies announcing huge jumps in traffic?

It is the same with the malls – retail outlets are reporting lower sales and this is compounded by the fact that there is an oversupply of malls.

International restaurant chains such as Hong Kong’s dim sum outlet Tim Ho Wan and South Korean bakery Tous Les Jours and South Korean barbeque restaurant Bulgogi Brothers have ceased operations.

But then again, it could be that their offerings and prices had failed to compete effectively against the local choices.

According to the central bank, demand is anchored in private-sector spending.

“On the supply side, the services and manufacturing sectors remain the key drivers of growth,” Muhammad said.

Looking ahead, the governor said that the economy this year is poised to register strong growth and likely to hit the upper end of the official target of 5.2%-5.7%.

The trickle-down effect is not being felt simply because there is uneven growth in the various sectors of the economy.

The property sector, which provides the biggest multiplier effect, continues to be in the doldrums.

The weak ringgit has had a big impact on the price of food, especially processed food and beverages that make up 74.3% of Malaysian household spending.

It was reported that Malaysia had imported a whopping RM38bil worth of food between January and October last year.

In recent weeks, the ringgit has strengthened to about RM4.16 against the US dollar. But it is still far from RM3.80 to the dollar and the outlook of the currency remains uncertain.

We can’t even hold our heads up against the Thai baht and Indonesian rupiah – two currencies that have appreciated against the ringgit.

The headline economic numbers are showing good growth, but Malaysians’ purchasing power has dropped and our living standards have eroded. That is the bottom line. We are living in denial if we do not admit this.

This column first appeared in StarBiz Premium.

Source: On the beat by Wong Chun Hai, TheStaronline


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Wednesday, August 9, 2017

Bitcoin must not in your retirement financial planning portfolio


Bitcoin investments have undeniably become a trend among savvy investors in search of the golden goose, but one financial planner is against the use of it as part of the financial planning portfolio for retirement.

Max Growth Wealth Education Sdn Bhd managing director Nicholas Chu said one should not use bitcoin as part of the retirement portfolio and the public must be well aware of the risk in bitcoin trading before getting in.

“It is not asset-backed, it is very unsecure. It is, basically, you want to participate in the future changes. It’s not a proper financial planning way. It is just an experimental thing that you want to go through in this era, but it is not a proper investment product,” he told SunBiz.

“I definitely don’t agree if they use this for their financial planning. But for those who are able to try new ventures, they can go ahead provided they have extra money. If this doesn’t affect their existing financial planning, then I’ll leave it to them. We need to tell them the pros and cons of this investment. It’s up to the clients to do the final decision,” he said.

Chu cautioned on the uncertainties of bitcoin trading, which is driven by market forces. “It is beyond anybody’s control, all the participants contribute to the bitcoin value. From that, I can say that there are a lot of uncertainties in the future,” he said.

Nonetheless, with the setting up of a few bitcoin exchanges, Chu noted that there will be demand and supply with tradeable markets available.

Bitcoin was the best-performing currency in 2015 and 2016, with a rise of 35.8% and 126.2% respectively.

Year to date, bitcoin prices have leaped more than three times. It stood at US$2,840 (RM12,140) as at 5pm last Friday.

Bitcoins are by the far the most popular cryptocurrency, which exists almost wholly in the digital realm and has no asset backing it. Bitcoin generation, known as mining, while open to anyone with a “mining application” on their computer, needs a great deal of computing power to solve complex algorithms which are later verified with the entire bitcoin network.

Colbert Low, founder of bitcoinmalaysia.com, said the recent spike in bitcoin prices could be partly due to the legalisation of bitcoin by the Japanese government.

He is unsure if the sharp rise in bitcoin prices will create a price bubble, but stressed that one cannot judge its price movement based on the “old economic theory”.

“This is a new economy based on a different model. It’s very hard to say,” Low opined, noting that there has been a growing number of retail outlets that accept bitcoin.

He foresees the usage of bitcoin propagating, especially in different types of payment methods.

However, Low opined that there will not be any “big movement” in the local market if the regulators do not regulate bitcoin.

“Our new Bank Negara governor is forward thinking and he is very much into fintech, technology and innovation. So there would definitely be improvement,” Low said.

The positive development of blockchain will be a catalyst for the growth of bitcoin, he added.

“Blockchain is a real thing that will change the way the IP system is architectured. We need to go down to a deeper level to see how blockchain can change the current problem and solve it.

“There are a lot of projects right now, over 500 companies are looking at this (blockchain) right now. Even IBM, HP and Microsoft are looking at it.”

Blockchain refers to distributed database that maintains a continuously growing list of records, called blocks, secure from tampering and revision. Bitcoin is just an application or software that runs on blockchain technology.

“If you look at blockchain technology, government agencies like the United Nations, the World Bank and the International Monetary Fund are looking at it. This is the best way to secure your data,” Low said, noting that the usage of bitcoin will help reduce operating cost.

Currently, there are about 16 million bitcoins in the market and the number is capped at 21 million.

Bank Negara has said that it does not regulate the cryptocurrency and advised the public to be cautious of the risks associated with the usage of such digital currency.

Source: By Lee Weng Khuen sunbiz@thesundaily.com

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Tuesday, July 4, 2017

Never-ending money games - from fixed return to split schemes


The allure of money game schemes (or money games) seems not to have diminished despite the collapse of many recently.

Instead, there has been a switch in investors’ focus from fixed-return games to split games, which are deemed “more sustainable”.

Fixed-return schemes generally refer to those that give a consistent percentage of return every month or week. However, most of them have collapsed lately.

Investors’ attention is now centred on split games, even though this means they have to wait for a longer period in order to get back their capital.

Mcoin, which is undertaken through MBI International Sdn Bhd and MFace International Sdn Bhd, is an example of a split game based on units of which the value keeps increasing and then split after a certain time.

However, with the raid of MBI’s flagship mall – M Mall in Penang – by the regulators recently, its days look to be numbered, and the sustainability of such schemes is now a big question.

Another prominent split game – Mama Captain, which has a similar business model to that of Mcoin – has also been red-flagged by Bank Negara last Thursday under the Financial Consumer Alert List. An additional 14 companies have been added to the list, bringing the total number of unapproved and unlicensed companies/schemes to 334 as at June 29.

Besides the local ones, there are several foreign schemes in the market, which investors expect to have more staying power than the fixed-return schemes. Two such schemes from China – Smart Traders Ltd and Centennial Coin of Prosperity – have been in operation in Malaysia since last year. However, it is understood that they have stopped distributing returns to their investors.

This, however, appears not to have deterred those who are lured by the promise of fast money. This is evidenced by the huge crowd seen at an event organised by a split game company a few weeks ago in Shah Alam. It was estimated that over 2,000 participants were present and most of them were Chinese investors.

A number of booths were set up at the venue, and investors were able to redeem a variety of stuff, including vouchers, health products, apparels and many more.

An investor whom SunBiz spoke to at the event said he is unfazed by the collapse of money games and is optimistic about the prospects of the split game that he is involved in.

The investor said he has been in the scheme for more than nine months and now it has started to bear fruit.

“Generally, it takes about two months to split once and we can start generating money after it splits for four times. Now I start to get money from the scheme. While you’ve to wait for some time before getting any return, I think it is still worth to join,” he opined. It is understood that the scheme has tied up with a few product operators to increase its attractiveness. Another investor, Alan Mu, said he was amazed by the event. “The gala dinner is so grand and there are so many products that I can redeem by participating in this scheme,” he said.

Another scheme that has caught the market’s attention is SV International (SVI), a company that Yong Tai Bhd has denied having links to. Yong Tai alleged that SVI circulated photos taken during a signing ceremony on SVI’s website as well as the social media, for which there was no official agreement entered into between the two parties thereafter.

Yong Tai also refuted speculation that SVI has a stake in its Impression City and Impression Melaka projects.

By Lee Weng Khuen sunbiz@thesundaily.com

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    Saturday, May 27, 2017

    Millennials Will Destroy Bitcoin


    Irrational exuberance is alive and well.
    A textbook bubble in Bitcoin prices is developing right now.
    And it has everything to do with Bitcoin's investors.
    Bitcoin Bubble
    I'm probably not going to gain any friends with this perspective. But there are inarguable factors that suggest Bitcoin's own buyers are irrationally driving up prices. And their exuberance is setting the market up for a crash.
    The Secret Gold Market They're NOT Telling You About
    This hidden playground is completely OFF LIMITS to retail investors...
    But it holds a secret that can help you predict spikes in gold with mysteriously uncanny accuracy...
    Here's how you can piggyback off it for gains of 468%, 935%, 1,657%, and more...
    Click here now for full details.
    Let me clear one thing up about Bitcoin before I explain why I think prices are eventually headed for a crash...
    As I argued before, Bitcoin is a legitimate form of money. But for the time being, it's being treated as a speculative investment.
    Money is typically used in exchange. And while Bitcoin can be used in exchange, it's largely not. Gary Schneider, Professor of Accounting at California State University, says only about 10% of Bitcoin is held by people who use it as currency. The large majority are speculators hoping to sell at higher prices.
    The fact that the market is dominated by speculators is not necessarily the problem for Bitcoin. And here's where I'm sure to piss some people off... The problem for Bitcoin is its buyers.
    Who are they?
    Well, according to a recent survey, approximately 60% of Bitcoin owners are under 35 years old.
    Bitcoin User Age
    In short, most Bitcoin buyers are millennials. And that's all we need to know about them to make an inarguable point (told you I wouldn't be making any friends here).
    The fact is this: A 35-year-old speculator intrinsically has much less experience in risk management than a 60-year-old. And remember, most Bitcoin owners are mostly speculators, as opposed to users of the product.
    AND remember they're speculating on a currency, which is among the most volatile of financial instruments.
    AND remember they're speculating on what essentially amounts to a new, experimental currency.
    All this considered, Bitcoin looks to me as one of the (if not the) most speculative financial instruments available...
    Expect for Bitcoin's derivatives, of course.
    Yes, believe it or not, Bitcoin has a futures market. And there are products that offer even more risk. On its Perpetual Bitcoin/USD Swap Contracts, BitMEX offers up to 100x leverage!
    But to really understand why I think Bitcoin is eventually headed for a crash, let's consider the most famous market bubble in history...
    Dutch Tulip Mania
    In the 17th century, formal futures markets developed in the Dutch Republic, providing the infrastructure for a massive bubble in the price of tulip bulbs.
    The tulip first became fashionable in France, where early modern ladies of the aristocracy began sporting the flower on their dresses. From there, the tulip became the flower to show off social status and wealth. The demand for bulbs subsequently skyrocketed, and prices immediately followed.
    At the peak of Tulip Mania in 1637, a single tulip bulb could cost as much as 10,000 gilders, the price of a nice middle-class townhouse in Amsterdam. According to one author, 12 acres of land was once offered for one rare bulb. For a flower bulb!
    Semper Augustus The Semper Augustus was the most coveted of all Dutch tulips.
    Of course, the bubble eventually burst. The price of tulip bulbs collapsed, and fortunes in perceived value disappeared over night.
    My team of researchers recently uncovered a key patent that exposes a major chink in Tesla’s armor...
    This patent describes a groundbreaking technology that could simply blow Elon Musk, and frankly the entire solar industry, out of the water.
    We’ve managed to uncover the tiny company with exclusive rights to this technology. It trades at less than $0.15 a share, but don’t expect it to stay there for long.
    Over the next several years, I believe the value of this firm could absolutely explode... by my calculations, upwards of 4,600%.
    I’ve included the patent filing and everything you need to know about this small company in this brief, free video presentation.
    Here's what I really want you to take away from this story...
    If we consider whom the people were who took part in Dutch Tulip Mania and compare them to the majority of Bitcoin owners, it seems both groups share the same shortcomings.
    First, we know both groups are speculators betting on the hot new product. But I think we can also make good assumptions to compare the investment sophistication of the Dutch tulip investors and today's Bitcoin buyers.
    Because formal futures markets were only recently developed, the Dutch tulip buyers were inherently unsophisticated investors. All of them. They simply didn't have the experience.
    The majority of today's Bitcoin buyers are generally younger, so they share the same inexperience. For many Bitcoin buyers, I imagine it represents their first real investment. They simply don't have experience in risk management. And I think that's pretty clear considering some are buying products with 100x leverage!
    Bitcoin could be the tulip of the 21st century with the development of a textbook bubble. And I think could be setting itself up for an eventual crash.
    Now, even though I've been talking about a crash in Bitcoin prices, there's an epilogue to the Dutch tulip story that's often overlooked... and that actually provides a bullish outlook for the technology.
    Truth is, the Dutch tulip bubble never really ended... it evolved. The price of tulip bulbs collapsed in the 17th century. But the flower industry at large eventually recovered and has never been bigger. Global floral production value is currently estimated at $55 billion.
    People still pay thousands for rare flowers. In fact, an anonymous buyer paid over $200,000 for a rare orchid in 2005. And that's not even considered the most expensive flower in the world. Rose breeder David Austin spent 15 years and $5 million to develop Juliet rose.
    Juliet rose
    My point is, the tulip as an individual product lost favor. But the collapse of the tulip market didn't completely kill the flower market. In the same way, I don't expect a collapse of Bitcoin prices to completely kill the blockchain-based currency market.
    Bitcoin is simply one product of many blockchain-based currencies. A crash in Bitcoin would throw a wrench in the blockchain-based revolution. But there is little doubt that blockchain technologies are the future.
    As we speak, every major central bank and large financial institution is researching how to implement blockchain into its own systems. It has already been proven to eliminate verification redundancies and improve security, and new applications are being tested every day.
    So while I think Bitcoin itself could eventually be headed for a crash, the blockchain technologies that are supporting all these digital currencies seem set for unprecedented growth.
    Until next time,
    luke signature
    Luke Burgess
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    Sunday, May 21, 2017

    Reject corrupt practices, weed out the bad apples, don’t hesitate reporting bribery


    https://youtu.be/gc6pF9mwL6c


    PENANG Yang di-Pertua Negri Tun Abdul Rahman Abbas has urged public servants to defend the good name of the civil service by rejecting corruption and misuse of power. “I fully support efforts in eradicating corruption among public servants by taking strict action against those found guilty, including termination of service,” he said in his speech when opening the fifth term of the 13th state assembly at the state legislative assembly building in George Town yesterday.

    Abdul Rahman evoked the example of Prophet Sulaiman (Solomon), who spurned bribes, as an inspiration for civil servants in carrying out their duties.

    On the economy, Abdul Rahman said Penang received RM4.3bil in investments, with 106 projects approved last year.

    “From that amount, RM3.1bil was from foreign investment while RM1.2bil was from domestic investment,” he added.

    In agriculture, he said livestock production value increased from RM827.96mil in 2015 to RM842.55mil last year, with the amount expected to continue growing and exceed RM850mil by 2018.

    Abdul Rahman praised the state for its efforts to promote medical tourism by establishing the Penang Center of Medical Tourism (PMED) involving 10 private hospitals in the state.

    He said the number of tourists seeking medical services in Penang increased by 14.77% from 302,000 in 2015 to 347,000 last year.

    “Income also increased by 17.92% in the same period, from RM391mil in 2015 to RM458mil last year,” he added.

    Earlier, Abdul Rahman inspected a guard-of-honour by 102 Federal Reserve Unit personnel.

    The state assembly sitting is scheduled to start at 9.30am on Monday.


    Pulau Betong assemblyman Datuk Farid Saad was earlier quoted as saying that it was unfair to reject the Opposition’s two motions, one asking Chief Minister Lim Guan Eng to step down pending his corruption trial while the other called for civil servants to take leave if they are charged with corruption.

    “We will bring it up during our debate in the assembly and let the people decide if the state government practised what it preached,” he had said.

    It was also reported that a motion would be tabled by Chief Minister Lim Guan Eng or a state exco member to censure Tasek Gelugor MP Datuk Shabudin Yahaya over his controversial remarks in Parliament on child marriages.

    Source: The Star by Lo Tern Chern

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