Many Malaysians Can't Afford To Retire

Unlike nonsensical and unproductive issues raised by some politicians, this is something which will have a direct bearing on our lives. Retirement. It's not something many think about when they are young, and even those not so young in their mid-lives. Unless one has substantial wealth, one will probably have to work well into their old age.

Many youngsters start out in life full of optimism of striking it rich and retire young. Not many succeed. The question is, how many are prepared to work (as in earning a living) until they die? Not many. In our modern materialistic society most will try their best to accumulate as much wealth as they can because they want to retain their current lifestyles in their retirement age. Again many will fail.

A few prerequisites to be able to retire:

• must be debt-free
• must have a home to stay without paying
• 2/3 of current salary per month for expenses
• or minimum RM1000 to RM2000 per month for basic living expenses
• must have substantial savings for medical expenses or emergencies
• preferable without dependants.

From the time a person starts out in life, he will have 30 years to plan. Looks like plenty of time, but it's really not. In the 30 years, he will need to deal with inflation, rising cost of living and expenses, marriage, kids, education, cars, house, insurance, etc. Many in their 40s, 50s or 60s today realise that they could not afford to retire. Many of the young generation today will find themselves in the same situation in the future.

Rather than hoping, it will be wiser to prepare ourselves mentally & physically to continue working into our old age. If you managed to retire early and comfortably, then great. If not, well, at least you're prepared.

Personally, I feel it is perfectly fine to continue working as long as health permits. Given a choice, I'd choose good health anyday! 

---

KUALA LUMPUR, Oct 5 ― Malaysia may be headed for a retirement crisis as tens of thousands of Malaysians depart the workforce for their golden years with less savings than is needed to keep them out of poverty.

According to recent figures from the Employees Provident Fund (EPF), the approximately 70,000 active 54-year-old contributors have an average savings of just under RM167,000 last year. The recommended minimum savings level is RM196,800.

The situation is made more alarming by the revelation that 69 per cent of all EPF contributors of the same age have less than RM50,000 in their accounts, as made known by the fund’s chief executive, Datuk Shahril Ridza Ridzuan, last month.

But even RM167,000 is scant consolation. As the average Malaysian expected to live until 75, retiring at 60 with that amount would mean surviving on just RM700 a month for the rest of their days.

With that amount, retirees would technically slip below the RM830 per month threshold that is indicative of poverty conditions in peninsular Malaysia, based on the Statistics Department’s poverty line income (PLI) for 2012.

According to Harveston Wealth Management financial adviser Annie Hor, a nest egg of RM167,000 could be made to last, but only if the retiree is completely free of debt and need not pay for accommodation.

“Otherwise you would be suffering a bit because if you just want a simple life, with three meals a day, maybe just get from point A to point B, petrol, you would need at least RM1,000 to 2,000 per month because, not forgetting when you are older, medical bills are expensive,” she told Malay Mail Online recently.

She added that her 60-year-old mother needs at least RM2,000 to get by in the city, even with her simple lifestyle.....

- See more at: http://www.themalaymailonline.com/malaysia/article/retirement-crisis-brewing-as-epf-savings-suggest-pensioner-poverty#sthash.cddlvIMN.dpuf

Petrol, diesel prices up by 20sen from 2 October 2014

The cheaper variant of petrol, RON95, will increase from RM2.10 to RM2.30 per litre while diesel will cost RM2.20 per litre. The difference between RON95 & RON97 (RM2.75) is only RM0.45. Perhaps it is more worthwhile to use RON97 instead.

Anyway, it is futile to worry about the impact on prices of goods because the prices of almost everything have been increasing on a regular basis. Expect it to continue in the coming years.

With GST around the corner, it will definitely increase the cost of doing business. Any form of tax is bad for businesses, bad for consumers, but good for the government. Expect price increases.

There's also talk of water & electricity tariff hikes. So, prices increase.

Minimum wage, which has pushed up wages across all levels, have also contributed to the increase of prices.  Unfortunately, the rate of decline of purchasing power is much higher. Since businesses need to pay more for salaries, prices increase.

It would be prudent to keep an eye on the economy, both domestic as well as worldwide. Don't get distracted by petty issues and lose your focus on the economy. It's always the economy.

Below is an interesting video on economic inequality. It's an important issue in every society, which can even make or break governments & countries. It's something they talk about but often lack the willpower to solve. Usually, it takes a revolution to change things as history has shown. Often, politicians and the ruling class would rather distract the people with other issues.

---

PETALING JAYA: The price of RON95 petrol and diesel fuel will go up by 20 sen effective midnight.

The new price of RON95 petrol will be RM2.30 per litre while diesel will cost RM2.20 per litre.
The Domestic Trade, Cooperatives and Consumerism Ministry said the Government had decided to reduce the current fuel subsidy by 20 sen in keeping with its subsidy rationalisation plan.

“This move is in line with the subsidy rationalisation plan by the Government to ensure that the country’s finances remain strong,” the Ministry said in a statement on Wednesday.

It said the Government also aimed to curb the smuggling of fuel and also to ensure that the current subsidy is not misused.

“The Government will continue to implement the subsidy rationalisation in stages so as to not burden the lower income group.

“We understand that fuel price increases will affect the economy and the people. Therefore, we will continue to provide incentives to the lower income group to alleviate their burden,” said the Ministry.

The current unsubsidised market price for RON95 is RM2.58 per litre while diesel is RM2.52 per litre.

Petrol and diesel prices were last increased, also by a 20 sen margin, on Sept 2 last year.

- http://www.thestar.com.my/News/Nation/2014/10/01/Petrol-Price-increase-20-sen/

Higher Interest Rates & Affordable Housing

Bank Negara announced that the Overnight Policy Rate (OPR) would be increased by 25bps, translating to an increase of the BLR from 6.6% to 6.85%.

I don't think Bank Negara have any choice but to raise interest rates, especially to curb inflation, at 3.4% forecasted for this year as well as to control excessive speculation. Gradual increases would stabilise the markets and protect the wealth of the people.

Currently, the FD rate among the local banks hover between 3.1% and 3.2%. Savings rates are a dismal 0% to 2.5% depending on the amount of deposits. Anything below 100k will likely give you up to a maximum of 2% at today's rates. In short, keeping money in the bank earns you pittance.

OK. Back to housing loans.

Looks like DAP is pretty quick to object.

New rate hike could bury hopes of would-be homebuyers, says DAP 

• The central bank’s move to increase interest rates will further burden prospective buyers already struggling to finance their first homes unless measures are introduced to cushion its effects, DAP secretary-general Lim Guan Eng said today.

• Lim suggested that Putrajaya reintroduce the Developer Interest-Bearing Scheme (DIBS) for affordable houses as a measure to help first-time buyers to purchase the homes.

• common grouse from first-time buyers was the difficulty in securing financing for their intended homes

• over two in three loan applicants for affordable housing costing below RM400,000 were rejected

• You can’t give the same conditions and interest rates to a buyer of a RM1 million house as someone buying a RM40,000 house says Jagdeep Singh Deo

I think DAP is missing the point in their criticism regarding the rise of interest rates. I also find that they are not being honest in their excuses. Blaming a .25% increase in BLR to the problem of unaffordable housing is a poor excuse.

Is DAP speaking up for the buyers or the developers? The root of the problem is the price!

1. RM400k - Whoever came up with the figure of RM400k as affordable housing clearly does not belong to the group that needs affordable housing. Who came up with this figure anyway? I'll hazard a guess that it would most like be the developers! RM400k IS NOT affordable to the lower income! RM40k is affordable. 100k-200k is still affordable. The simple reason why so many from this group could not get their loan applications approved is because they can't afford it!

2. The way I see it, state governments are not doing their part. Instead of earning revenue by selling state lands at a premium to developers who then build expensive luxury properties, the state should instead allocate some land specifically for affordable housing. Are you telling me that the developers can only build them at RM400k per unit?

3. Developer Interest-Bearing Scheme (DIBS). DIBS is the main contributing factor that led to speculation. Those who could not afford RM400k houses should buy cheaper ones. If they can't even service the interest during construction, how are they going to pay the installments when their houses are ready? Moreover, developers would have marked up the selling price of the property to include the interest charges. If they abandon their projects, the buyers still need to repay the loan plus the interests. 

Providing housing for the people is one of the responsibilities of governments.

4. What happens to the low income then? Banks won't lend to them because they actually could not afford a RM400k property? Some would be able to afford 100k houses, even 200K. I don't think those with a household income of less than RM6k should take up a 400k loan. Those with kids and compounded by the rising cost of living, rising interest rates, GST, removal of subsidies for fuel, etc... will face problems servicing their loans.

The low income group needs public housing, which happens to fall under the purview of state governments. I'm not seeing any of these being built.

Instead of DIBS, perhaps the developers & state government should build first, then sell, so that buyers only start servicing their loans when the houses are delivered. All the buyer has to do is come up with a 10% deposit, and their loans are only activated upon delivery. Now, that will be a "people-friendly" policy!

The Federal Government should do their part as well by drawing up better laws to protect the buyers, especially in cases of abandon projects, material quality and specifications.

And lastly... RM400k is NOT AFFORDABLE housing!

Only those who belong to the HIGH INCOME group would think RM400k is affordable!

---

New rate hike could bury hopes of would-be homebuyers, says DAP

GEORGE TOWN, July 11 — The central bank’s move to increase interest rates will further burden prospective buyers already struggling to finance their first homes unless measures are introduced to cushion its effects, DAP secretary-general Lim Guan Eng said today.

Opposing the interest rate hike announced yesterday, Lim suggested that Putrajaya reintroduce the Developer Interest-Bearing Scheme (DIBS) for affordable houses as a measure to help first-time buyers to purchase the homes.

“Reinstating the DIBS for houses below RM400,000 would benefit first-time buyers and promote housing democracy,” he said in a statement issued today.

DIBS is a form of interest capitalisation Scheme (ICS) where interest costs are capitalised or built into the sale price, instead of being paid by the borrower as they are incurred.

The government prohibited DIBS at end of last year to curb speculation on properties.

The Penang chief minister said the reintroduction of DIBS would alleviate the pressure on homebuyers arising from the rate increase.

“This allows buyers to purchase their houses by paying 10 per cent and giving them breathing room by not paying interest payments and rent at the same time whilst waiting for their houses to be completed,” he said.

Saying that a common grouse from first-time buyers was the difficulty in securing financing for their intended homes, Lim asserted that Bank Negara Malaysia’s move yesterday would further exacerbate the problem.

Yesterday, Bank Negara raised the overnight policy rate (OPR) by 25 basis points to 3.25 per cent, the first such increase in three years.

The OPR determines interbank loans and affects other interest rates such as the base lending rate (BLR) and other interests on consumer banking services including home mortgages.

State executive councillor for housing development Jagdeep Singh Deo also expressed concern on the difficulty for new homebuyers in getting loans for affordable houses, saying this nullified efforts to build more units to alleviate spiralling home prices in the state.

“I appeal to the government, Bank Negara and the banks to come up with a programme or scheme just for first-time buyers of affordable housing because it is pointless for the state to be building affordable homes when they can’t get loans to buy the homes,” Jagdeep said at a press conference at his office today.

He said over two in three loan applicants for affordable housing costing below RM400,000 were rejected.

“This means, out of 10 applicants, only three get loans so how can the lower income group buy their own homes if they can’t even get loans?” he asked.

In a parliamentary reply to Lim on the issue, the Finance Ministry revealed that a total 50,224 loan applications worth a total RM10.3 billion were approved to buyers of affordable housing costing below RM400,000 for the first four months of this year.

However, a total 34,662 applicants for loans amounting to RM7.3 billion were rejected within the same period.

Last year, a total 170,886 loan applications for houses below RM400,000 amounting to RM34.5 billion were approved while 120,291 applications amounting to RM24.8 billion were rejected.

The ministry said that the applicants were rejected because they do not fulfil borrowing requirements that include their income, unsatisfactory credit record with high debts or financial commitments.

It added that the banks did not approve loans to those who fell short of requirements to avoid borrowers from falling into deeper debts that they could not pay.

Today, Jagdeep said the interest rates and loan application process should not be applied across the board for all borrowers as it would highly disadvantage the lower income group.

“You can’t give the same conditions and interest rates to a buyer of a RM1 million house as someone buying a RM40,000 house,” he said.

He added that all buyers of low cost and low medium cost housing were thoroughly vetted for eligibility so there is no question of them misusing any special loan schemes that could enable them to purchase their first homes.

The federal government formed Syarikat Jaminan Kredit Perumahan Bhd (SJKP) in 2008 to encourage people to buy their own homes.

The SJKP provides financial guarantee to loans given out to buyers of low and low medium cost houses costing below RM100,000 but as at March this year, only 3,684 applicants obtained the financial guarantees from SJKP.

- See more at: http://www.themalaymailonline.com/malaysia/article/new-rate-hike-could-bury-hopes-of-would-be-homebuyers-says-dap#sthash.knuPu7Xl.dpuf

---

Bank Negara ups OPR for the first time since 2011

PETALING JAYA: Interest rates are set to rise with Bank Negara having raised the benchmark overnight policy rate (OPR) by 25 basis points (bps), or 0.25%, to 3.25% as part of measures to curb rising household debt.

The hike was within most economists’ expectations after the broad hints given in the last monetary policy statement in May, in which policymakers had expressed concerns over the continued build-up of financial imbalances....... - http://www.thestar.com.my/Business/Business-News/2014/07/11/Bank-Negara-ups-OPR-for-the-first-time-since-2011/

---

Maybank to revise deposit, lending rates on Wednesday

KUALA LUMPUR: Malayan Banking Bhd will revise its deposit and base lending rates effective July 16, in tandem with the 25 basis points increase in the Overnight Policy Rate (OPR).

It said on Friday its deposit rates will be revised upwards by up to 15bps.

Maybank's base lending rate (BLR) and base financing rate (BFR) would be increased by 25 basis points from 6.60% per annum to 6.85%.

Its last revision in BLR and BFR was on May 11, 2011 when they were revised from 6.30% to 6.60%. - http://www.thestar.com.my/Business/Business-News/2014/07/11/Maybank-to-revise-deposit-lending-rates-on-Wednesday/

---

‘New OPR will have little impact’

PETALING JAYA: An increase of 0.25% in the overnight policy rate (OPR) will not have a significant impact on borrowers for low-cost and affordable housing priced between RM45,000 and RM450,000, according to a senior executive of a real estate agency.

VPC Realtors (KL) Sdn Bhd director James Wong said there would only be an estimated marginal increase of RM5 to RM53 per month in loan repayment compared to the previous interest rate for a 30-year tenure with a 20:80 margin (see chart).

“As for high-end residential properties, most buyers are either cash buyers or they buy with a minimum loan margin. Hence, an increase of 0.25% per annum will be insignificant,” he added.

Bank Negara has raised the benchmark overnight policy rate by 0.25% to 3.25%, the first rate hike since June 2011.

Mortgage rates are based on the base lending rate (BLR) which in turn is correlated to the central bank’s OPR.

Wong felt that speculators would be hit the most.

“If they are unable to service the loan, they will be forced to sell. But it will not be as easy as before due to the real property gains tax,” he said.

- http://www.starproperty.my/index.php/articles/investment/new-opr-will-have-little-impact/

Mahathir: Chinese are rich, Indians are lawyers?

I wonder why Tun Mahathir is so defensive on Obama's comment. In any country, all citizens should have equal opportunities, free from discriminations.

In Malaysia, it should be the same. Assistance should be given to groups that requires help, regardless of race. If the majority that forms that group happens to be Malays, help should be given. But other groups, from other races, should not be excluded by virtue of their race or religion.

Again, politicians tend to have a skewed and biased view on the role of government. They tend to meddle with society to fit their political agendas.

It is true that non-Malays have the opportunity to become rich or become professionals in various fields. But it is also true that those who managed to achieved success did so in spite of the various hurdles and glass-ceilings faced by non-Malays. So, it is not accurate to paint the government as altruistic. Anyway, this is not the point of this post.

I'm glad Tun Mahathir recommended Joseph Stiglitz's book on inequality. I think the main point made by Joseph Stiglitz is the class inequality, not race.

However, I find that it applies to Malaysia as well. Actually, I believe that class inequality is the underlying problem we are facing today in Malaysia. Regardless of race or religion, there is a growing inequality in the distribution of the country's wealth.

If we look at each community, we will find that the gap between the rich and poor is astounding.

Yes. It applies to the Malays as well. There's actually a large group of very wealthy Malays, mostly the nouveau riche. If we were to take the official statistics that states that the Malays make up the poorest in Malaysia, then it would logically make the income disparity between the rich & poor among the Malays the highest among communities.

So, if we want to racialise issues, it works both ways! Take that!

Anyway, according to Tun Mahathir, there is a wide disparity between the richest 1% and the rest in the USA. This has created an imbalance of wealth among the population. Well, just so you know, the same is happening in Malaysia. The top 1% in Malaysia comprises of all races.

The questions we should be asking the government is:
Are the 1% helping to improve economy of the country?
Are the 1% investing their wealth in industries that would drive the economy?
Are the 1% creating desirable jobs for the people?

And most importantly, which percentage group does Tun Mahathir and the rest of our esteemed leaders belong to?

I think most of us have the answer already.

---

Mahathir disagrees with Obama’s inequality remark

KUALA LUMPUR: Former prime minister Dr Mahathir Mohamad disagrees with US President Barack Obama over his remark that Malaysia will not succeed if non-muslims are not given equal opportunity.

After launching the ‘UN Chronicle’ book here today, Mahathir said that there is no equality in America as only one percent of the US population holds all the wealth.

“The one percent, controls the wealth in America and the rest are poor. That is the why there is a group in the US who call themselves ’99′ who want to occupy Wall Street.

“In Malaysia despite our policies, do you see the Chinese as the poorest people?

“Indians have become lawyers and doctors. You see, those who didn’t come to Malaysia are not so fortunate,” said Mahathir.

Mahathir recommended that people read ‘The price of inequality’ a book written by nobel laureate on economics, Joseph Stiglitz.

On Sunday when addressing a young leaders group at the University of Malaya, Obama had said that “Malaysia cannot flourish if the non-Muslims do not have the same opportunity”.

In his first official state visit, Obama said that “prejudices against people from different religions and races have no place in the modern world and must be removed”.

Obama also said that non-Muslims in Malaysia are currently facing hostility, and that some felt oppressed.

He added that countries, including Malaysia, will not succeed if women, who comprise roughly half of the population, are not given the same opportunities as men.

- http://www.freemalaysiatoday.com/category/nation/2014/04/30/mahathir-disagrees-with-obamas-inequality-remark/

Bankruptcy cases on the rise in Malaysia

If I understand correctly, according to the news report, from 2007 to 2014, a total of 253,000 people were declared brankrupt. Out of that, 26.54% were due to vehicle loans. Followed by housing loans.

Both housing & car loans are the 2 biggest loans taken by the average person. And both are the most expensive items a person would buy, sometimes in their entire lives.

Houses are becoming or already are unaffordable. What about cars?

Why should cars be the second most expensive? So expensive that consumers need to take a nine-year loan to buy one?

---

Bankruptcy cases on the rise in Malaysia 

Published: Wednesday April 9, 2014 MYT 1:37:00 PM 

KUALA LUMPUR: Most incidents of bankruptcy in Malaysia arise from the sale and purchase of vehicles, making up 26.54% of the total cases between 2007 and this year.

Minister in the Prime Minister's Department Nancy Shukri said some 33,570 Malaysians were declared bankrupt within that period after they faced problems involving vehicle sales transactions.

"The second cause of bankruptcy is housing loans. This shows that bankruptcy may not necessarily be due to the challenging economy but because of the personal needs of the people," she said during question time in Parliament Wednesday.

Nancy said the economy was only the top fourth reason for bankruptcy while the third factor was problems in personal and business loans.

She said according to the Insolvency Department, the total number of bankrupts as of December last year was 253,635.

The department's records showed that the number of bankruptcy cases was consistently increasing from 13,238 in 2007 to 13,855 in 2008, 16,228 in 2009 and 18,119 in 2010.

Even though the number decreased to 16,167 in 2011, it rose again to 19,525 in 2012 and 21,987 in 2013.

Nancy said bankrupts aged below 25 totalled 1,895 between 2007 and this year, comprising only 1.5% of the total cases. There were 25,552 cases involving those aged between 25 and 34, she added.

On efforts by the Government to combat bankruptcy, Nancy admitted that conducting outreach programmes was not sufficient.

"However, we aggressively carry out programmes that are targeted at specific groups, including single mothers, who may have been left or cheated by their husbands and are forced to settle debts they never took in the first place," she said.

She added that the Government was also in the midst of drafting a law to give a second chance to bankrupts but could not elaborate further on this move.

- http://www.thestar.com.my/News/Nation/2014/04/09/Bankruptcy-on-the-rise-in-Malaysia/

 

The Chinese poor - Koon Yew Yin

The best thing we can do for ourselves, is to constantly seek the truth. To our children, teach and nurture them to seek knowledge throughout their lives, which will empower them to find truth.

Anyway, this article by Koon Yew Yin is worth highlighting because of the points he raised which are true. There are actually poor Chinese Malaysians. Gasp! Unbelievable? Just as there are poor Malays, poor Indians, generally poor Malaysians!

But in this country, we just love to look at everything from a racial or religious context don't we? Poverty doesn't discriminate. Many people have also highlighted the poor Indians but it is actually sad that many fellow Malaysians, especially those so-called "educated", "middle-class" ones especially who often have scant interest or worse, showed disdain.

But what if I were to highlight the poor Malaysians, the poor-class of all races, Malays, Indians, Chinese, Orang Asli, etc. The urban poor. Mind you, these are the ones whom, everyday, sees you in your luxury cars everyday, your expensive houses & your expensive clothes. things that they will never be able to afford. What do you think is their perception of you? That the world is fair?

In years to come, the gap between the rich and poor will increase. The numbers of the poor will also increase. Many from the so-called "middle class" will join the "poor class". There will ba a class struggle, but politicians will turn it into a racial or religious conflict so that they will stay in power.

Anyway, I would like to add a few comments on some points.

One of the biggest handicaps of the Chinese poor and their children is their inability to communicate effectively in other languages than their own dialects.

This is very true. Isn't it similar to what we hear about Malay youths lacking in English proficiency? I bet everyone thinks that only Malays face this problem because of the standard of our National schools. Well, it's the same in vernacular schools. The difference is, because of the worldwide Chinese diaspora, the Chinese will/can find work overseas (sometimes illegally) while the Malays here have no choice or prefer to remain in Malaysia. It's cultural also I suppose, because Indonesians (belonging to the same Malay stock) are more adventurous and industrious hence venturing out to all corners of the world to make a living. Although we always read about negative reports of Indonesian maids or construction workers overseas, I've always admired their courage to work in a foreign land. It is something that the Chinese have in common with Indonesians.

The Chinese poor are almost completely excluded from all government schemes providing skills training, income generation or educational and housing support. 

Actually, many Chinese come from small towns or villages or the new villages. Some were farmers, hawkers, trishaw pullers, factory workers, etc. Of course, some bigotted Malays online are just so fixated on the idea that the ancenstors of the Chinese here are all prostitutes and coolies.

The Chinese, especially the younger generation, should not resort to doing the same and mock the ancestors of the Malays nor other races. We should never be ashamed of our roots, and our ancestors. We should instead be grateful and honour them for their sacrifice.

It's just too bad that the Malaysian government choose to racialise poverty. But in practise, all races do get help from the government, although there may be some racial biased.

.... they are exploited by their employers, especially in the small and medium-scale enterprises and workshops where they work in dirty jobs for little pay.

This is the reason why I am always perplexed when these Malay NGOs and politicians keep harping on the low percentage of Malays employees in the private sector, especially in these Chinese-run companies. And those ignorant Malay masses, who have never worked a day in these companies, will often parrot that point like they are being discriminated and missing out of untold riches. The fact is, most of them will leave within a year (which is considered good already if they last that long), unable to take the pressure and stress. Their first choice has always been the civil service.

.... they are exploited by money lenders who many have to turn to in view of their frequent need for cash advances to meet emergencies, etc.

A good number of them actually join the underworld or involve in illegal activities. In fact, I noticed that the numbers have not decreased and they do earn good money. Of course, they are not as visible as the Indians, who have taken over the street levels.

The Chinese community also have to deal with bad habits, such as gambling, drugs and alcoholism, which also contributes to the problems with "Alongs".

.... they are exploited by the government which fails to provide them and their children with equal opportunities and regards them as “pendatang”.

This is perhaps the reality the Chinese will have to accept if they want to live peacefully in this country. It's a fact that the civil service, for example, is heavily biased towards Malays. Well, the government have to provide jobs for the Malays. This is the easiest solution to the problem of unemployment among the Malay graduates. I don't think this policy will change anytime soon.


However, I'm quite disappointed when it comes to education because I believe everyone should be entitled to it, regardless of race. Any student who qualifies should be allowed and provided with a place to further their studies. It's a basic human rights that should not be denied. And it should be free. I would rather build one bridge less in order to build 5 more schools. And don't get me started on the quality of education...

---

The less visible Chinese poor – Koon Yew Yin

April 23, 2014

Perkasa and other Malay right-wing organisations are always complaining about how the Chinese have taken over the country's economy. They use this simplistic observation to frighten Malays to unite under a “ketuanan Melayu” and “ketuanan Islam” banner against so­called Chinese domination of the economy.

But how much of truth is there in this allegation? In earlier analysis, I had pointed out that owing to the New Economic Policy (NEP), the Malays have made tremendous strides since the 1970s in the economic sphere. 

For example, they control Bank Negara and all the major banks (except for Public Bank); all the government-linked companies (GLCs); Petronas; as well as comprise the majority in the top professional and best-paying occupations in the private sector. They, in fact, control what can be called “the commanding heights” of the economy.

What about the Chinese? Firstly, we should realise that not all Chinese are successful in business. In fact, only a tiny minority of Chinese belong to the class of the super­rich or billionaires – perhaps no more than a hundred or even less throughout the country. There is a fairly large Chinese middle class though so that generally, the Chinese are on the average more well off compared to non­Chinese in terms of average household income.

But let's also not forget that income inequality is also highest among the Chinese. What this means is that much of Chinese wealth is concentrated in the hands of the Chinese super­rich and that we have a very large number of Chinese who either fall well below the urban poverty line or are only slightly above the poverty line. Unfortunately, there are few recent studies on the Chinese poor.

The government's statistical department ignores the presence of this group and the academics in the public and private universities have avoided studying them.

Although I am not an academic and have not studied the group of Chinese poor, let me share these observations accumulated through the scholarship programme that I have run for the last five years during which I have received at least one or two applications every week – mostly from the children of poor Chinese. I offer scholarships to help the poor because I was from a poor family before and I know how difficult it is to be poor.

1. The Chinese poor mainly come from Chinese school backgrounds.

2. Many are dropouts and work as unskilled or semi­skilled labour in poorly paid agricultural or urban jobs with little potential for upward mobility.

3. The Chinese poor also come from self-employed backgrounds with businesses such as hawking, food stalls, etc. unable to succeed or grow because of competition and other factors.

4. They are most vulnerable when they are unable to work due to ill health or old age as they do not have access to EPF savings or government pension safety net.

5. Because they are poor, they are unable to provide the proper environment for their children to do well in their studies. This often leads to the reproduction of poverty in the family rather than socio­economic advancement for the younger generation.

6. One of the biggest handicaps of the Chinese poor and their children is their inability to communicate effectively in other languages than their own dialects. This can be seen in the broken English or Bahasa Malaysia letters written to me.

7. The Chinese poor are almost completely excluded from all government schemes providing skills training, income generation or educational and housing support.  

The Chinese poor suffer from exploitation in several ways. Firstly, they are exploited by their employers, especially in the small and medium-scale enterprises and workshops where they work in dirty jobs for little pay.

Secondly, they are exploited by money lenders who many have to turn to in view of their frequent need for cash advances to meet emergencies, etc.

Finally they are exploited by the government which fails to provide them and their children with equal opportunities and regards them as “pendatang”.

Many of the Chinese poor have been citizens of the country for more than one generation – in some cases, several generations. They have lived and contributed their blood and sweat to the country's development far longer than many newly arrived “pendatang” from Indonesia and other Muslim countries.

Malaysia is the only homeland they know but the government continues to treat them as if they are second-class citizens. Is it surprising that they are not loyal to the MCA and the Barisan Nasional when they are treated worse than newly arrived immigrants? Is it surprising that the attitude of the Chinese poor towards the government is so different from that of the Chinese super and very rich? 

– http://www.themalaysianinsider.com/sideviews/article/the-less-visible-chinese-poor-koon-yew-yin

Proton wants RM3bil to develop new models

Proton Tanjung Malim Plant

Some salient points gleaned from the article below:

• seeking up to RM3bil in development funding from the Government and Petroliam Nasional Bhd (Petronas).

Excise duties amount to about RM7bil if I'm not mistaken. Which is to say, to protect the local auto industry, consumers had to pay RM7bil. Proton itself, needs a little less than half that amount just to develop new models. I would like to ask the management of Proton, how much returns would they be able to get from that RM3bil fund? How many cars would they need to sell?

You can forget about all those billions already given. Count yourselves lucky if they don't ask for more later.

• not sure if Proton’s turnaround plan, which has an ambitious target of selling 350,000 cars by 2018, would have been carried out effectively

What turnaround plan? How many of these plans have they came up with all these years? The fact is, turning around is not possible after so many attempts. Every time Proton wants money, they come up with a turnaround plan. We've heard it all before.

• turmoil in management and the friction within the top management of Proton. 

All of them are just in it for the ride, enjoying the perks and big paycheck. Everyone knows Proton pays well.

• Proton deputy CEO Lukman quit his job a few weeks ago – the second time he has resigned.... Lukman was a tough boss and employees had difficulty adjusting to his demands....

This has to take the cake. This is the first time I've heard that the boss that has to resign when it is the employees that can't perform! What kind of company is that? And you want RM3bil so that they can keep their jobs?

• could find it tough to maintain its 2013 market share of 21%

Perodua has been maintaining a market share of 30%. Proton's market share is declining.

Malaysia's automotive industry has got to be the most screwed-up in the world. Creating Proton is one of the greatest mistake in this country's history. The people are still paying through their noses for this mistake, for 3 generations already!

---

Up to RM3bil needed to develop new models

Wednesday March 5, 2014 MYT 12:00:00 AM

PETALING JAYA: Proton Holdings Bhd is seeking up to RM3bil in development funding from the Government and Petroliam Nasional Bhd (Petronas).

However, the national car manufacturer – which has appointed Datuk Abdul Harith Abdullah as acting chief executive officer (CEO) to replace Datuk Lukman Ibrahim – has not been successful with its efforts thus far.

“The International Trade and Industry Ministry (Miti) and Petronas have both declined to assist in the funding,” said a source.

Now a unit of DRB-Hicom Bhd, Proton has been seeking fresh funding to execute its transformation plan that will see new models being developed, including an electric car.

The national carmaker had first approached Miti last year for funding, but its request was turned down. The reason was that it couldn’t fully justify why it needed such funding from the Government.

It later approached Petronas, but that attempt has been futile too.

Coincidentally, the futile attempts by Proton to secure funding come at a time when the position of former prime minister Tun Dr Mahathir Mohamad as Petronas adviser is a talking point.

On Dec 2 last year, Dr Mahathir had announced that he was quitting as adviser to Petronas. Subsequently, Prime Minister Datuk Seri Najib Razak urged him to reconsider his decision.

Petronas president and CEO Tan Sri Shamsul Azhar Abbas has declined to answer queries on the position of Dr Mahathir in the national oil corporation.

“Ask the Prime Minister. It’s the Prime Minister who appointed him,” said Shamsul in reply to a question.

It has been reported that Proton has committed RM3.8bil in investments until 2017 and needs more capital to be competitive and achieve its turnaround plan. Perusahaan Otomobil Kedua Sdn Bhd (Perodua), meanwhile, has committed RM1.8bil until 2015.

Industry executives are puzzled as to why Proton deputy CEO Lukman quit his job a few weeks ago – the second time he has resigned.

The first was in July last year, but he was persuaded to return after a few months.

It came as a surprise back then, but auto executives are not surprised he has finally decided to call it a day at Proton. Word is that Lukman was a tough boss and employees had difficulty adjusting to his demands.

Auto executives are not sure if Proton’s turnaround plan, which has an ambitious target of selling 350,000 cars by 2018, would have been carried out effectively, given the turmoil in management and the friction within the top management of Proton.

“The plan is good and Proton has a real chance of pulling it off,” said one observer after Lukman left the company.

Proton is set to launch its global small car by June this year, but its financial performance in the latest quarter has cast some doubt on its prospects to compete with the liberalisation of the industry set to intensify under the latest National Automotive Policy.

Sales slumped by nearly 30% between end-September and December 2013 from its second quarter, and likewise, its market share. Proton had a good second quarter following the launch of the Saga SV, but could not maintain the sales stamina.

“It’s a challenging landscape and it can only get tougher and not easier,” said one auto analyst, describing the task ahead for Proton.

While Proton has its share of competitive issues, rival Perodua seems to be holding steady.

Perodua’s market share stood at 30% last year, and with sales projections expected to be flat in 2014 in an industry slated to see only a meagre increase in total industry volume, Perodua should maintain its iron grip on market share.

Proton, on the other hand, said analysts, could find it tough to maintain its 2013 market share of 21%. - SOURCE

Capitalism System

This is illustration has been around for sometime. Most people have already seen it. But I thought it is pretty good and I'm posting this for the sake of posterity.

This is the world we live in. It accurately illustrates who actually controls countries and the world.

We often pin labels on different strata of society like Upper-middle class, middle-class, lower-class, etc. Well, to me those labels does not amount to anything. Those are merely labels created by sociologists & governments to make the people think that all of them are middle or upper-middle class, high class, etc.

It is a fact that the more educated the people are, so often referred to as the middle-class, the harder it is for the rulers to control. Depending on the country, some rulers will use religion. Some will use race. Some use class. You name it, they've tried it.

Even those in business are actually working for somebody else. Those who control the corporations and governments are the real rulers. Sometimes, even governments have to bow to them.

In modern society, the people have inadvertently become overly dependent on governments for practically everything. From basic needs like food & water to education & jobs. And you need to pay for it.

Just take the current water crisis in Selangor as an example and you will realise whom actually controls whom. You have to literally beg them to supply water. Same with houses, electricity, security, food & fuel. In other words, you are at their mercy.

Those who control the wealth of the country rules. The fight for this control of wealth is what politics is about. That control has never been in the hands of the common people. The people think they have the power, when they overthrow governments, hold rallies & protests. They do have that power but all for a fleeting moment or until the objective is achieved. It merely transfers that power to another group of rulers, and the cycle repeats itself.

But there was a time when the people were more independent. They had land to build their homes & grow their own food, had wells to draw water, wood & kerosene for fuel. Perhaps even weapons like a gun or two to protect themselves. Rarely do they need to pay for their basic necessities. They were more self-reliant and independent.

Now, people have to work, build & toil for others for money. Only to spend it back on the very things they themselves built & create for others. Isn't capitalism wonderful?

People have actually lost more than they've gained.

Is Malaysia's Property Market Over-regulated?

I think not. It's actually under-regulated.

Property sales and launches has slowed down quite a bit this year. I've highlighted it in a previous post last month HERE. Since then, every other day, there'll be industry players giving their opinions in the media on the latest market sentiments and government cooling measures.

I'm always wary of the opinions or views coming from people who are vested.

Below is an article highlighting the views from the property agents group. Obviously, similar to developers, they are not in favour of strict regulations. Members from the group which I would loosely term as the "unholy trinity" of the property market:- Developers, Agents & Banks, are responsible for the current unhealthy property speculations.

Homes are a basic need. People need homes. The commercial properties, on the other hand, can be unregulated, by all means. Residential properties on the other hand should be regulated. Those who are exploiting the market are very irresponsible.

---

Property market should not be over-regulated

KUALA LUMPUR: The Malaysian property market, which saw cooling measures instituted in Budget 2014 to arrest steep property price increases, should not be over-regulated by the government, but be allowed to grow at a normal pace.



Making the call, Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector president, Lim Lian Hong, said a price increase of between 5% and 7% annually, is justified.



“I think, the central bank is also very careful that they don’t kill the market … We want to practice free market, so that foreign investors will feel more at ease to come into the system, to buy and sell.

“If you have a very restrictive market, foreign investors will feel that this market is artificial, on the whole,” he said at a press conference in conjunction with the Seventh Malaysian Property Summit 2014, on Feb 25.



Lim said that if the local property market is highly regulated, it may pose a problem to foreigners, if they want to resell their units. “We have to balance the laissez-faire, which is the free market,” he added.



Laissez-faire should be applied in the appropriate context. In a country where there are even ownership regulations between citizens of different races, I think foreign ownerships should be the least of our concerns for now. It's not a totally free market. Foreigners can always invest in commercial properties. Or residential properties above a certain price, over RM5mil maybe?

The problem now is that property prices are not rising at a normal pace. While I agree that price increases of 5%-10% is reasonably healthy, but the price increases for the past 3-4 years have reached levels that would normally take 10 years to reach.

 
Rahim & Co managing director, Choy Yue Kwong, said that Bank Negara Malaysia (BNM) regulations on housing loans are most effective in regulating the Malaysian property market, as the regulations are targeted at speculators.

“Speculators are people who make use of the banking system, take out very little money, [use] 95% loan to buy and speculate. These are the people, the system should target at.



“The main reason why there was so much speculation in the past, was because loans were so easily available. Some developers would price it at a certain level, give discount and then sign the agreement at the gross level effectively.”

Choy said, new BNM guidelines that stipulate that loans will be based on the net price, rather than the gross price, will take out a large segment of customers, who depend on loans to speculate.

Yes. BNM regulations are effective. It protects people from over extending themselves & speculating beyond their means. But what he is actually saying is that we should take out speculators who need loans, while those who have the cash can continue to speculate.

Home buyers should be allowed to borrow with higher margin of financing, especially for their first home. What the government should do is to ensure the prices are affordable and not allow developers to rake in excessive profits with high prices.

Property developments should be categorised according to owner-occupied or investment segments. Singapore's model should be emulated.



However, he is doubtful that the imposition of real property gains tax (RPGT) will have any significant impact on sales of houses.



“I think, house prices have gone up so much in the the last few years. No doubt, RPGT has its effect, but the effect is not much anymore. If you had RPGT three or four years ago, then it would have had more effect, because at that time, the prices hadn’t gone up so much.”



RPGT is the most effective way to control speculation. In fact, the rates & duration should be increased to prevent prices from rising further. RPGT keeps prices of new launches at reasonable levels. It is not meant to dampen sales but to control prices & speculation.

Choy is also sceptical about the effectiveness of the government’s intention to stop bulk-buying of properties by investors, by imposing restrictions on the number of properties bought by an individual.



“You can’t stop people from buying, if they have the money,” he noted.

Choy said, there are methods other than government regulations, that can be utilised to control the property market.

 He argued that housing planners have a role to play, in ensuring that developers are not “carpet building” or overbuilding to feed the speculative market.



Yes. The government can, and should stop these bulk buying practises. It is the most damaging form of speculation. If these investors are so rich to buy in bulk, they should build their own instead. Again, residential properties are not vegetables to be made available in bulk. Those with money can always buy up commercial properties. You can even buy the whole building if you want.

“Government planners [should] become more proactive. Let’s say, if the developer wants to build 9,000 units in a certain place, the planners should step in, even though the guidelines allow it. If they know that 9,000 are too many, they may say, tone it down to 5 phases [or] 10 phases,” Choy explained.

 He said that property developments now have an excess of investors, but not enough occupiers, leaving many units empty, years after the development has been completed. The scenario could also apply to the Iskandar Malaysia development.

Government planners should control the number of units, not because of over supply, but most importantly to control population density which if left unchecked could lead to traffic and pollution problems. They should also regulate the prices and types of property as well.

The empty units are the result of excessive speculation which led to over supply. Which means that there's excessive speculation in the market. The culprits are the speculators and developers. Regulators should control the quantity of units allowed to be built.

This article first appeared in The Edge Financial Daily, on February 26, 2014. - SOURCE

Najib: Only one out of every 10 Malaysians pays tax

So it's official then, that only 1 in 10 Malaysians pays tax. It depends on what kind of tax he was referring to, income tax? Because Malaysians are indirectly paying taxes like sales tax, excise duties, stamp duties, import tax, etc.

If Najib means income tax, then we are indeed facing a big problem. Malaysia's population is 30 Million, or thereabouts. Assuming 50% are working age, it works out to only 1.5 million taxpayers out of 15 Million working age adults. Which also means the 90% or 13.5 Million workers are earning below taxable income.

This tells us that:

1. Malaysians' are either working at low paying jobs, or they are underpaid.

2. Inflation will greatly impact the disposable income after tax.

3. Government's solution to increase revenue through taxing the working class.

4. No mention of government cutting their spending but instead increases it with salary increments & bonuses to civil servants.

5. If the economy is growing, why isn't the government collecting more from corporate, personal & other taxes?

6. Either the government is spending more than it's income, or businesses are evading taxes, or economic growth did not translate to increased revenue.

Their solution is to take the easy way out, which is to tax everyone with GST. Raising income taxes would be pointless because the pool is small.

But there's one thing no one thought of asking, "After the removal of subsidies & introducing GST, does it mean that the government will not have to borrow anymore? How long will it take to reduce the debt to manageable levels?".

However, I observed that many of those countries who have similar taxes like GST or VAT, with the exception of a few, still have huge debts on top of high income tax. The only difference is their wages and standard of living are much higher.

Finally, I would like to state that subsidies are not wrong. It is perfectly within the people's right to enjoy subsidies if they need it, and it is the responsibility of the government to provide it.

On the other hand, signing lopsided agreements and contracts with highway operators, power producers, water concessionaires, vendors and service providers are morally & ethically wrong.

---

Najib: Only one out of every 10 Malaysians pays tax

PEKAN: The current mix of low taxpayer base, increasing public spending, and resistance towards subsidy rationalisation is a recipe for trouble, said Prime Minister Datuk Seri Najib Tun Razak.

Revealing that only one out of every 10 Malaysians pays tax, Najib said there is an urgent need to raise government revenue, while at the same time reining in increasing amounts spent on broad-based subsidies such as on fuel.

According to Najib, who is also the Finance Minister, the number of civil servants would increase each year, but when revenue did not rise in tandem, the country would have to resort to borrowing. In the same vein, the proposed goods and services tax (GST) was one such measure that could lead to more revenue for the government, but has been opposed by some.

“When I do not announce any bonus during the tabling of the Budget, then it is not considered a good budget. But each time bonus is dispensed, it is RM5.6bil in spending a month,” Najib said at a 1Malaysia People’s Aid (BR1M) presentation ceremony at his constituency here yesterday.

He added that subsidies had to be carefully targeted to strengthen the country’s finances.

“We say our country’s economy is mid-high income and a lot better than other countries. But the question that is on our minds is why are petrol subsidies reduced and the sugar subsidy removed when our economy is already good?

“We have to explain that the rationalisation is to avoid a situation where we have to borrow money,” said Najib, who pointed out that money saved from cutting subsidies was then channelled to more equitable ways of helping people, such as BR1M.

“A person who drives a Kancil only enjoys RM900 in subsidy a year while those with a big car can stand to benefit up to RM2,400 if they drive 50km a day. This is not fair.

“Also, why should foreigners enjoy our subsidies too? That is why we want to refine the system to become targeted, fair, transparent and efficient,” he said.

Najib added that BR1M could also help the people settle debts, and, in principle, this was also helping those in need.

“It is meritorious in Islam to help others. It is okay if the Opposition wants to denounce our efforts, as long as we hold on to the principle of helping others,” he said. - SOURCE

Li Ka-Shing's advice on how to be rich

I have no idea as to the authenticity of the article. Well, for what it's worth, it is up to the individual to judge if his advice is applicable to his or herself. People come from different backgrounds and hold different values and outlook in life. Personally, I don't subscribe to all the advice given in the article. But I've seen people doing those things in real life and ironically, I tend to avoid those people. I suppose it depends on how much a person craves money.

Our modern but materialistic society judges the success of a person by his/her wealth. That is one of the worst values to impart to the young. And we wonder why the younger generations are so materialistic. Anyway, success is relative. It's how you acquire & what you do with the wealth that is important.

From my personal experience with such people (those who want to be rich kind), they tend to view friendships & relationships through materialistic benefits. Everything and everyone is judged on the benefits which can be derived from the relationship. To them, it is normal. Once they have no use for you, you will be discarded. It is best if you keep your distance because they will be suspicious of your motives if you contact them. Or when they are finally rich, they will be arrogant and will look down on you, because that was how they were treated when they were poor.

Such is life.

A person actually do not need to be rich to have a happy and fulfilling life. Everything you own now is only temporary. When you die, someone else is the owner. At least if you are not wealthy, the people around you will not wish for you to die soon so that they can get their hands on your wealth. :) just kidding... but seriously... how much does a person need to live? Certainly not billions.

---

Hong Kong billionaire Li Ka-Shing shares some of his money wisdom, outlining an inspirational five-year plan to improve one’s lot in life

This article is translated from the original Chinese by Edmund Ng at CeoConnectz.

Suppose your monthly income is only RMB 2,000, you can live well. I can help you put money into five sets of funds. The first $600, second $400, third $300, fourth $200, fifth $500.

The first set of funds is used for living expenses. It’s a simple way of living and you can only be assigned to less than twenty dollars a day. A daily breakfast of vermicelli, an egg and a cup of milk. For lunch just have a simple set lunch, a snack and a fruit. For dinner go to your kitchen and cook your own meals that consist of two vegetables dishes and a glass of milk before bedtime. For one month the food cost is probably $500-$600. When you are young, the body will not have too many problems for a few years with this way of living.

Second set of funds: To make friends, expand your interpersonal circle. This will make you well off. Your phone bills can be budgeted at RMB 100. You can buy your friends 2 lunches a month, each at $150. Who should you buy lunch for? Always remember to buy lunch for people who are more knowledgeable than you, richer than you or people who have helped you in your career. Make sure you do that every month. After one year, your circle of friends should have generated tremendous value for you. Your reputation, influence, added value will be clearly recognized. You’ll also enhance your image of being good and generous.

Third set of funds: To learn. Monthly spend about RMB 50 to RMB 100 to buy books. Because you don’t have a lot of money, you should pay attention to learning. When you buy the books, read them carefully and learn the lessons and strategies that is being taught in the book. Each book, after reading them, put them into your own language to tell the stories. Sharing with others can improve your credibility and enhance the affinity. Also save up $200 per month to attend a training course. When you have higher income or additional savings, try to participate in more advanced training. When you participate in good training, not only do you learn good knowledge, you also get to meet like-minded friends who are not easy to come by.

Fourth set of funds: Use it for holidays overseas. Reward yourself by traveling at least once a year. Continue to grow from the experience of life. Stay in youth hostels to save cost. In a few years you would have travelled to many countries and have different experiences. Use that experience to recharge yourself so that you’ll continually have passion in your work.

Fifth set of funds: Invest. Save the $500 in your bank and grow it as your initial startup capital. The capital can then be used to do a small business. Small business is safe. Go to wholesalers and look for products to sell. Even if you lose money, you will not lose too much money. However, when you start earning money, it will boost your confidence and courage and have a whole new learning experience of running a small business. Earn more and you can then begin to buy long-term investment plans and get long-term security on your financial wealth being of yourself and your families. So that no matter what happens, there will be adequate funds and the quality of life will not decline.

Well, after struggling for a year and if your second year salary is still RMB 2,000, then that means you have not grown as a person. You should be really ashamed of yourself. Do yourself a favour and go to the supermarket and buy the hardest tofu. Take it and smash it on your head because you deserve that.

If your monthly income is at RMB 3,000, you must still work very hard. You must try to find a part time job. It will be great to find part time sales jobs. Doing sales is challenging, but it is the fastest way for you to acquire the art of selling and this is a very deep skill that you will be able to carry it for the rest of your career. All successful entrepreneurs are good sales people. They have the ability to sell their dream and visions. You’ll also meet many people that will be of value to you in the later part of your career. Once you’re in sales, you will also learn what sells and what not. Use the sensitivity of detecting market sentiments as a platform for running your business and in the identification of product winners in the future.

Try to buy minimal clothes and shoes. You can buy them all you want when you’re rich. Save your money and buy some gift for your loved ones and tell them your plans and your financial goals. Tell them why you are so thrifty. Tell them your efforts, direction and your dreams.

Businessmen everywhere need help. Offer yourself to do part time for any kind of opportunities. This will help to hone your will and improve your skills. You will start to develop eloquence and soon, you’ll be closer to your financial goals. By the second year, your income should be increased to at least RMB 5,000. Minimum it should be RMB 3,000, otherwise you would not be able to keep up with inflation.

No matter how much you earn, always remember to divide it into five parts proportionately. Always make yourself useful. Increase your investment in networking. When you increase your social investment, expand your network of contacts, your income also grows proportionately. Increase your investment in learning, strengthen your self confidence, increase investment in holidays, expand your horizons and increase investment in the future, and that will ultimately increase your income.

Maintain this balance and gradually you will begin to have a lot of surplus. This is a virtuous circle of life plans. Your body will start to get better and better as you get more nutrition and care. Friends will be aplenty and you will start to make more valuable connections at the same time. You will then have the conditions to participate in very high-end training and eventually you’ll be exposed to bigger projects, bigger opportunities. Soon, you will be able to gradually realize your various dreams, the need to buy your own house, car, and to prepare an adequate education fund for your child’s future.

Life can be designed. Career can be planned. Happiness can be prepared. You should start planning now. When you are poor, spend less time at home and more time outside. When you are rich, stay at home more and less outside. This is the art of living. When you are poor, spend money on others. When you’re rich, spend money on yourself. Many people are doing the opposite.

When you are poor, be good to others. Don’t be calculative. When you are rich, you must learn to let others be good to you. You have to learn to be good to yourself better. When you are poor, you have to throw yourself out in the open and let people make good use of you. When you are rich, you have to conserve yourself well and don’t let people easily make use of you. These are the intricate ways of life that many people don’t understand.

When you are poor, spend money so that people can see it. When you are rich, do not show off. Just silently spend the money on yourself. When you are poor, you must be generous. When you are rich, you must not be seen as a spendthrift. Your life would have come full circle and reach its basics. There will be tranquility at this stage.

There is nothing wrong with being young. You do not need to be afraid of being poor. You need to know how to invest in yourself and increase your wisdom and stature. You need to know what is important in life and what is worth investing in. You also need to know what you should avoid and not spend your money on. This is the essence of discipline. Try to avoid spending money on clothing, but buy a selective number of items that have class. Try to eat less outside. If you were to eat outside, do make sure you buy lunches or dinners and foot the bill. When buying people dinner, make sure you buy dinners for people who have bigger dreams than you, and work harder than you.

Once your livelihood is no longer an issue, use the remainder of your money to pursue your dreams. Spread your wings and dare to dream! Make sure you live an extraordinary life!

Famous theory from Harvard: The difference of a person’s fate is decided from what a person spends in his free time between 20:00 to 22:00 . Use these two hours to learn, think and participate in meaningful lectures or discussion. If you persist for several years, success will come knocking on your doors.

No matter how much you earn, remember to split your salary into five parts. Take care of your body so that it will still be in good shape. Invest in your social circle so that you will constantly meet new people where you can learn new knowledge from. Expanding your network will also have an important impact in how much you earn eventually. Travel every year and expand your horizons. Also keep abreast with the latest developments in the industry. If you follow this plan diligently, you will soon see big surplus in your funds.

Whatever happened in the past is over. Do not dwell on past mistakes. There’s no point crying over spilt milk. Everybody makes mistakes. It’s what you learn from the mistakes, and promising yourself not to repeat those mistakes that matters. When you miss opportunities, don’t dwell on it, as there are always new opportunities on the horizon.

Being able to smile when being slightly misunderstood is good upbringing. When you’re wronged and you smile with calmness, it is generosity. When you’re being taken advantage of and you can smile, you’re being open-minded. When you are helpless and you can do a philosophical smile, you’re in a calm state. When you’re in distress and you can laugh out loud, you’re being generous. When you’re looked down and you can calmly smile, you’re being confident. When you’re being jilted in relationships and you can smile it off, you’re being suave.

There are many people who are struggling to make ends meet. It doesn’t matter if you are rich or poor. There are lessons for all to learn from Li Ka Shing. - SOURCE

Robert Kuok - Palm Oil

First, it was sugar. Robert Kuok sold his sugar business in Malaysia in 2009 to FELDA. Now, he is one of the global leading producers of raw sugar. Guess where FELDA gets it's raw supplies from?

Now, Wilmar International has decided to stop buying crude palm oil (CPO) from Sarawak from 2015. Apparently, Robert Kuok's group of companies also owns significant palm oil plantations in Indonesia. Obviously, buying from Indonesia is cheaper.

Malaysia's tycoons are investing overseas instead of in Malaysia. This definitely does not bode well for the country & her citizens. As history has shown, the Chinese businesses are being taken over by either by GLCs or Malay businessmen aligned with politicians. One by one, big businesses are leaving for safer havens such as Singapore or Hong Kong, where their fortunes and business empires are safe from greedy hands.

Come to think of it, it's an oxymoron. On one hand, the Malaysian government tells us that they are trying to attract foreign investor. On the other, they are pushing away local investors (whom happens to be Chinese).

An interesting reply from Robert Kuok in the Star interview below: ... Asked about the sense of discrimination among the Chinese in Malaysia, Kuok demurred, saying: "This will lead only to highly controversial statements, which is not good for anybody. One must never hurt those Chinese who are living in Malaysia, never be the cause of any kind of inter-racial hostility.

To me, the future of Malaysia rests on the economy. It always has.

Only when these grabbing of wealth & power stops, will Malaysia have a chance to progress. Else, it will go downhill.

For now, the people makes noise on a full stomach. Wait till their stomachs are empty.

All the racial & religious issues will lead to conflict when the economy tanks.

And it is prudent for politicians to stop playing up these issues, before they really get out of hand.

I'm not raising these points because these businesses are owned by the Chinese. Businessmen are businessmen. Their wealth do not belong to all the Chinese. The point is, regardless of ethnicity, a growing economy is important to sustain this country. More so for the Chinese whom are largely in the private sector. And many, many Chinese these days are losing hope.

Before the Malays start accusing & calling the Chinese unkind names, think about how far you've come with a growing middle-class and benefiting from affirmative policies. It does not come free. It does not come solely from petro-money. It came from a strong economy. It came from sacrifices by the normal non-Malays who had to give up some of rights. It came from the risks non-Malays had to make to build up their businesses, and then had to share it with Malay businessmen.

Whatever the Chinese own, they paid for it. They did not get it for free. Some had to borrow from loan-sharks. Most sacrificed family time. Some lost everything, fortunes & family. At the lower spectrum, they sacrificed years working overseas illegally to save enough to buy their home & capital for business.

---

S'wak firms want probe into Wilmar for anti-competitive behaviour

Tuesday February 18, 2014 MYT 12:00:00 AM 

KUCHING: Sarawak planters, reeling from Wilmar International Ltd’s decision to stop buying from them, are crying foul, contending that the decision by the latter breaches anti-competition laws.

The Sarawak Oil Palm Planter Owners’ Association (SOPPOA) has urged the Federal and Sarawak state governments to look into whether the Singapore-based Wilmar had abused its dominant position as a leading agribusiness group.

Wilmar recently decided to stop buying crude palm oil (CPO) produced from oil palm in forest areas and peat land in Sarawak from 2015.

SOPPOA sent a memorandum to the Plantation Industries and Commodities Ministry and the Sarawak Land Development Ministry last week, urging them to look into whether Wilmar had infringed Competition Act 2010 by its actions. The Act has a provision to investigate actions that can be considered an abuse of a dominant market position.

According to SOPPOA secretary Philip Ho, Wilmar, which owns Sarawak’s first palm oil refinery set up in Bintulu over a decade ago, buys more than 50% of the 3.3 million tonnes of CPO produced in Sarawak annually. This makes Wilmar the largest CPO buyer in the state.

“There is a likelihood that Wilmar’s policy may trigger other Roundtable on Sustainable Palm Oil (RSPO) members to adopt similar policies and further restrict market accessibilities for Sarawak palm oil. Ultimately, this will drive prices of CPO from Sarawak down, with discounts being the norm expected by international players,” he told StarBiz yesterday.

SOPPOA urged the Federal government to consider the interests of non-RSPO members in the industry in Sarawak, as they would face challenges stemming from Wilmar’s policy.

Land Development Minister Tan Sri Dr James Masing, who was informed of Wilmar’s decision to the state government via a letter on Dec 5, said Sarawak might lose about RM400mil in sales tax revenue a year from oil palm products as a result of the multinational company’s policy.

Wilmar owns the Bintulu edible oil plant, which manufactures palm olien, palm fatty acid and palm stearin.

Masing had briefed the state cabinet on the matter and replied to Wilmar’s letter. He said the state government would not bow to Wilmar’s pressure, as it would affect more than 17,500 smallholders and some 300,000 people in rural areas involved in oil palm planting.

Ho said SOPPOA had requested the federal ministry to consider certain export tax-exempt quotas and/or rebates for Sarawak’s palm oil industry for the next five years to allow adequate time for those planting in peat and mineral areas affected by Wilmar’s policy to find alternative markets.

SOPPOA said there was a need for the ministry to explore new international markets in China, Pakistan, India, Bangladesh and Africa, as such alternative market outlets were crucial for Sarawak’s oil palm industry.

SOPPOA has also urged the federal authorities to raise the volume of Sarawak CPO to be allocated for biodiesel production in the country. He said Sarawak had about 1.6 million ha of peat land, and the state government had plans to open 1.2 million ha for plantations and agriculture projects. So far, 500,000ha have been planted with oil palm.

SOPPOA has called on the federal authorities to fast-track the implementation of the proposed Malaysian Sustainable Palm Oil to enable planters in the country to be certified under the national scheme for benchmarking in the international market.

“It is also seen as prudent for the Government to actively engage with its Indonesian counterpart to consolidate the palm oil industry with a united stance, as both nations are major suppliers facing discrimination from the big buyers. The setting up of an Asean Sustainable Palm Oil standard is also viewed as a move in the right direction for the industry in both countries to benchmark the commodity internationally.”

SOPPOA has asked the federal ministry to mediate a meeting between major Malaysian palm oil players, federal and state governments, as well as the association with the objective to move forward in the spirit of “One Malaysia”.

It said the Sarawak oil palm growers should not be left in the cold and that they needed the continued support of major palm oil players. - SOURCE

---

Robert Kuok still rooted to Malaysia despite spending 40 years in Hong Kong

Four decades ago, Tan Sri Robert Kuok decamped Malaysia for Hong Kong.

The ostensible reason: lower taxes in Hong Kong. What some say: a fierce dislike of Malaysia's controversial New Economic Policy favouring the bumiputeras and the resulting cronyism.

Whatever his reasons, Kuok says of the country in which he was born: "I haven't lost my affection for Malaysia."

In a telephone interview with The Straits Times on Tuesday, the tycoon elaborated on his donation of RM100mil to build Xiamen University's first overseas campus in Salak Tinggi, Selangor.

... Kuok, who was educated at Raffles College where he was classmates with Lee Kuan Yew, later moved his base to Singapore.

... Asked about the sense of discrimination among the Chinese in Malaysia, Kuok demurred, saying: "This will lead only to highly controversial statements, which is not good for anybody. One must never hurt those Chinese who are living in Malaysia, never be the cause of any kind of inter-racial hostility.

---

The Reason for Kuok's Exit

... On 31 October 2009, PPB Group under the flagship of Robert Kuok issued a statement to the Bursa Malaysia that it has decided to dispose of its sugar units along with land used to cultivate sugar cane for RM 1.29 billion to FELDA. The sales resulted in a one-off gain for the company. The sugar unit and sugar cane plantation were the second largest business segment upon its grain and feed which were topping the sales.

---

The mystery of Sugar King Kuok exiting sugar business in M'sia

...The Kuok group’s Singapore-listed plantation giant, Wilmar International, has a market capitalisation of S$39.1bil or more than RM95bil.

---

Sweet for Felda, bitter for the poor

May 23, 2011

...On May 9, Dosmetic Trade, Co-operatives and Consumerism Ministry secretary-general Mohd Zain Mohd Dom announced a government decision to increase the price of sugar from RM2.10 to RM2.30 a kilogramme as part of the its subsidy rationalisation programme. He said the move would save the government RM116.6 million....

---

Malaysia's Sugar King Kuok has gone global

Tuesday July 6, 2010

... Months after Tan Sri Robert Kuok-controlled PPB Group Bhd sold its entire local sugar operations to Felda, the billionaire once dubbed the Sugar King of Malaysia acquired Sydney-based CSR Ltd’s sugar business for A$1.75bil (RM4.73bil).

The deal gives Singapore-listed Wilmar International Ltd control over half of Australia’s raw sugar output.

Wilmar, headed by Robert Kuok’s nephew Kuok Khoon Hong, is 18.34% owned by PPB Group. The two firms are controlled by Kuok Brothers group of companies.

“This latest acquisition proves that Wilmar is well on its way to becoming a dominant global sugar player and will significantly raise the possibility of the injection of Robert Kuok’s sugar business into Wilmar,’’ OSK Research analyst Alvin Tai said in a quick update on Wilmar after the deal was announced yesterday...

...According to OSK, Robert Kuok owns some 200,000ha of sugar cane plantation in Indonesia.
Yesterday, CSR announced that it had accepted Wilmar’s bid to buy its sugar and renewable energy unit, Sucrogen Ltd.

In March this year, Wilmar said it plans to start a venture into sugar cane plantation in Indonesia. Wilmar is already the world’s biggest palm oil trader and derives half its revenue from businesses in China....