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Saturday, December 31, 2005

Happy New Year

Sorry that I am a bit busy and have less posting this week.

I wishes all my reader

Happy New Year

May all your wish come true in 2006 and have a very blessed New Year.

Top 10 visited Page in Competitive Malaysia in 2005:

1. Home page without www : Http://

2. Home page with www : Http://

3. Most Competitive Bumiputra CEO In Malaysia

Thank you Global Voice Online for providing a link to that page

4. Ananda Krishnans empire missing link.

Thank you 49 Media for providing a link to that page

5. Jeff Ooi Vs Oon Yeoh.

Thank you Oon Yeoh for providing a link to that page

6. Why gangterism and bullying in school become more serious.

I have numereous search for this page from Mara for over 2 months. I am not sure it is from student or lecture.

7. GST and Income Tax.

Thank you GST Malaysia for providing a link from their home page.

8. Racists Opinion in Prime Minister of Malaysia's website.

Thank you UMNO-reform 's website for providing a link to that page.

9. GLC classified as non bumiputra

10. Others

Top 3 referrer to this website in 2005

1 Bookmark

2 Project Petaling Street

3 UMNO-reform

Updated: Top 10 countries visiting this blog in 2005

1.Malaysia 78.28%
2.United States 7.89%
3.Singapore 3.52%
4.United Kingdom 1.91%
5.Australia 1.69%
6.Korea (South) 0.75%
7.Canada 0.70%
8.Japan 0.67%
9.Other 0.52%
10.Germany 0.41%

South Korea rank no 6, but I have received a loyal click from Hanyang University, Korea for the past 9 months. I am not sure he/she is a student or a lecture or professor.

Happy New Year to you


Friday, December 30, 2005

Condolence to Tan Sri Dr Noordin Sopiee

This morning newspaper have one news that attracted my attention. Chairman & CEO of Institute of Strategic and International Studies Malaysia(ISIS), a thinktank of ex-Prime Minister Tun Dr Mahathir, Tan Sri Dr Noordin Sopiee has pass away.

My blog name, Competitive Malaysia, was inspires by ISIS goal to make Malaysia strategically competitive.

The Star published a comment written by SOO EWE JIN:

Tan Sri Dr Noordin Sopiee, though schooled as an economist and political scientist, he cut his teeth as a journalist, starting out as a leader writer in the New Straits Times, eventually becoming the group editor-in-chief.

But it was as DG of ISIS (subsequently its CEO and chairman), that Doc would make his biggest contributions to the country......

...Noordin was profiled in various publications but he was especially proud of one profile with the headline The Man who would be Kissinger. Dr Noordin liked the headline.

Read the full article here

Dr Noordin is also a columnist with The Edge in Malaysia, Yomiuri Shimbun and Nihon Keizai Shimbun in Japan and Singapore's Business Times.

It is his article published on The Edge that I never miss. However, he rarely write after he has promoted from Director General to Chairman & CEO of ISIS.

He is one of the architect on Malaysia Multimedia Supercorridor (MSC).

I remember in one of his article he mentioned that Malaysia is a production economy in term of economy indicator. Like percentage of manufacturing on GDP. Despite we do not have a strong manufacturing brand like Sony, Samsung, Ford, General Motor, Acer.

He advise Malaysia to shift from production economy to knowledge economy. That was before China boom that threaten the Malaysian's manufacturing industry.

Majority of the ex-Editor-in-Chief of New Straits Times was holding important position in Government. Including controversial MAS chairman Datuk Dr Munir Majid.

Out going Editor-in-Chief Datuk Kalimullah Hassan who will be joining ECM Libra as a merchant banker is the man to watch. Merchant Banker usually become Corporate Planning/Finance Manager in corporate world is a position that provide strategic planning for a company. The position is far more important than Finace & Accounts Department.

I have a short period in Corporate Planning Department of a public listed company. However, I feel each month in corporate planning department is equivalent to 1 year experience in Finance & Accounts Department.

Thus, Datuk Kalimullah Hassan might be the strategic planner for our present Prime Minister Pak Lah, who is also a finance Minister 1.

NST:Passing of a scholar and an intellectual
Datuk Jawhar Hassan, director-general of ISIS:A burning passion for just about everything
Jeff Ooi: Dr Noordin Sopiee


Tuesday, December 27, 2005

My comment on insurance policy

I received the following email from a reader call Fong Kai:

Hello Peter,

RE: a loyal reader of your 'Competitive Malaysia' blog

My name is Fongkai and I must confessed your blog has impressed me so much that I thought I should ask for your opinion when it comes to financial management. I hope you can enlighten me with your knowledge about buying an insurance. From your stance this might be quite awkward, but I trust your experience and intelligent will be able to help people, like me to know about risk management. It happened that after I read-

I havent got a clue as of what sort of policy i should go for. Term life seems to be feasible for now. But a whole-life policy should be a sound investment in the long term. An agent also informed me that to ask for a hospitalization claim as a term life policy holder will be somehow difficult. Point is I haven't got a clue as of to what extent the statement is being truthful.

My age now is 25 and only realized a sound financial management starts with risk management. I shall bevery grateful should you able to pass on your knowledge to me.

Thank you,

Fong Kai

Actually I have bad experience with insurance company. At the age of 25, your risk is low and premium is very low. Actually you do not need insurance unless your parent has retired.

When you grow older. You need insurance coverage if your spouse depend on you or for your children. However, your risk is higher, premium have to be higher.

When you are young, income is low. Premium you can afford is low. When you are older, income is higher, premium you can afford is higher.

Risk management is required when there is a risk. When your parent is not depend on you or your spouse is not depend on you. You do not required to insure.

Now, ex-Finance Minister Anwar Ibrahim has abolish Inheritant Tax. Thus, business owner also do not required to to insure their life for descendant to pay tax. Previouly, when a business owner pass away. The descendent need to have cash to pay to government for inheritant tax. Or, they have to disposed of their property(House) or part of their business. This cause business fall to other partners' hand. Thus, an insurance cover is required. But this no longer the case.

For accident, you have Socso. If you feel not secure. You can add some PA insurance on your own. However, Group PA is cheaper, a lot of company do buy a group PA for their whole employee. If your company have cover on this or your credit card company has cover for you. You do not need it either.

What we need is serious illness or what you said hospitalization. However, government is planning a National Health Policy. Thus, you might not required it after few years.

Unless your parent or your children depend on you. You do not have risk to cover.

Insurance against spouse is a risky move. In this uncertain world, you might get murder if you have such insurance like what appear on movies. You do not know whether your spouse got extra marital affair or not. Or he or she might need the money. You might get murder if your spouse have ulterior motive. Or have heavy debt with loan shark. Loan shark might master mind such murder. I really not advise people to buy life insurance unless is really necessary.

I heard a story that a father who went missing when he is on business trip. When the ship he take has sink like what happen to Titanic. After more than half year of missing. Government declare that he is death. Thus, their wife and children able to get a large sum of insurance claim. Children are happy as they able to buy a brand new computer, their dream toy etc.

However, their father actually is safe by a another ship and only in contact with them after 9 months. Thus, everybody is happy that their husband and father is save. But how they feel???They have to return the large sum of insurance they received. A happy event become ....Not very happy. Oh, why buy such insurance?

I have buy a life insurance policy before . With my financial knowledge. I choose a company that would not fail in 100 years (That is important. Imagine if the insurance company fail earlier than you) with good management and investment track record. The company is a blue chip company listed on oversea stock exchange now.

However, I venture to business once. When my business need finance. I borrow money from my policy. I went to the insurance company to enquire what is the maximum I can borrow. Let say they told me I can borrow RM9,460. However, their executive advise me to borrow RM9,000 only. The balance RM460, although not much. You unable to take back the money only unless you continue to pay your premium to continue your policy. I need money to finance my business then, thus I never continue to pay the policy and thus the policy lapse. Imagine, such a big company with good reputation, but they train their staff in such an unethical manner! What about other insurance company with less reputation?

I calculated after that RM9,460 is approximately of what I have pay over the years. Not even able to cover interest. But I take out only RM9,000 eventually. I make a loss in such investment.

Thus the above blog is correct that insurance is merely a risk management tool but definitely not an investment tool.

If you really want to buy an insurance. Identify your real "risk" area. Usually, if you are a boss and not cover by Socso, just get a Group PA for your whole company with a "reputable" company. Reputable mean they have a record of payment when accident occur and pay it fast. Not after few years of investigation.

If you need hospitalization policy. You might ensure you insured with reputable company as well. Company have bad payment record or delay in payment have to be excluded.

On tax planning. If you feel that your salary able to increase very fast. Where your 9% EPF employee portion would more that tax deductible ceiling. You unable to deduct your tax eventually as your EPF deduction has fully utilize such deduction. Only insurance for hospitalization and education is separately deductible from EPF. Of course, if you are low income earner, that is another case.

As every individual have different risk profile. Insurance requirement is different. For me, I feel I do not need a policy. You have to access yourself differently to suit your situation.

Update : Nanyang


Monday, December 26, 2005

DiGi and it CEO Morten Lundal

I like to read The Edge. However, I might miss some issue because of sold out in my area or some other reason. However, I never miss it year end issue before. It provide a review for whole year in 2005 and for planning next year.

In year 2005's year end issue. I guess the most mentioned name and company on the weekly is DiGi and it CEO Morten Lundal.

First, under Best Analyst of the Year. One of the analyst the make the best call is Macquarie Research analyst Premanand Jearajasingam's buy recommendation and price target on DiGi.Com Bhd.

Premanand Jearajasingam had forecast a RM7 fair value for DiGi as early as March 30, 2005. Three week after DiGi fired the first salvo i the postpaid war on March 7. At that time, DiGi was trading at RM5.45.

Premanand had pegged DiGi's fair value at RM8.20 as early as Aug 4 while most conservative analyst only agreed DiGi shares are worth more than RM7 after DiGi announced it third quarter result and capital repayment plan on Oct 26.

Since Oct 28,2005, his price target for stood at RM9.20. Will he be proven right again?

Second, under 10 Companies to watch in 2006. DiGi.Com Bhd was one of the listed company that have a profit and turnover of growth for the last three quaters. Other than Macquarie Research analyst Premanand Jearajasing. Similarly bulish is Morgan Stanley analyst Navim Killa with a RM9.10 target and UBS analyst Syed Razif Al-Idid's RM8.80.

Shareholders could be looking at a dividend of around 35 sen a shares next year. This translates to 4.4% potential yield at current price level or 4% as long as its shares price does not exceed RM8.77. write The Edge's Cindy Yeap.

Then there is the proposed 70 sen per share capital repayment which shareholder will meet on Jan 24, 2005 to pass the proposal.

Third, CEO Morten Lundal was name one of the Newsmaker 2005. Lundal's 17 months in office have delivered earning that beat analyst's expectation for at least two quarters in 2005. His announcement in October that DiGi will pay it maiden dividen folowing a 70 sen a share capital repayment has sent share price up 31% to RM8.10 since Oct 26,2005.

The largest issue to watch next year is the decision on the third generation (3G) spectrum award in February 2006. DiGi is seen as the frontrunner for a 3G spectrum.

DiGi's successes under Lundai's stewardship include firing the first salvo in the postpaid price war that force domestic long-siatance phone rates down.

Fourth, under 20 CEO we admire. Berhad CEO Morten Lundal again name as one of the 20 CEO we admire in 2005 by The Edge. Morten Lundal was former consultant with Gemini Consulting and AT Kearney before joining Norwegian telecommunications company Telenor ASA.

Telenor ASA, a company control by Norway government was reputable of it high tech open concept headquarter. DiGi's new corporate headquarters in Shah Alam - a smaller copy of Telenor's award winning open concept - is in its final stage of completion


Friday, December 23, 2005

Oon Yeoh on Firefox

I have mentioned that I used to read Oon Yeoh's articles for technology analysis. People used to use Microsoft's Internet Explorer for browsing the net because it come together with Window when you buy a computer.

A lot of people try to break the Monopoly of Microsoft in software industry to bring in competition so that consumer able to enjoy cheaper price in software.

Apple's Mac try it but not successful, Netscape try it but failed, and a lot of open sources software including Java also try it but not very successful.

Now a new browser that is available for free in the market call Firefox. Oon Yeah has done a review on it since it launch. Among the advantage of FireFox over Microsoft's Internet Explorer state by Oon Yeoh include:

• Multiple searches: From a toolbar at the top of the browser, you can get instant access to several search engines. Firefox also allows you tocustomizee the browser so that typing the word "book" followed by a title automatically performs a search on Amazon. com for that book;

• News feeds: Firefox supports really simple syndication (better known as RSS), a technology for automatically pulling headlines from news sites and weblogs so you won't have to check them manually. When Firefox sees a website that offers an RSS feed, a little orange tag lights up in the lower right-hand corner of the browser. Clicking on it gives you a new bookmark that automatically changes as the content of the website changes. I know this probably sounds more complex than it actually is, but once you try it you'll love it, especially if you're a news junkie.

• Tabbed browsing: With IE, if you want to visit a new site without closing the old one, you have no choice but to open up a new window. This is a problem for someone like me who likes to load up to 10 sites simultaneously (that means opening up 10 new windows!). Tabbed browsing makes the new windows appear as small tabs at the top of the existing window (think of it as windows within windows), making it super fast and convenient to switch among various websites. Again, this probably sounds more complicated than it really is, but trust me, you'll be hooked once you try it.

Read Oon Yeoh full analysis here

If you want to try better technology. You can download it. If you are not that tech savvy. You can still download it simply to reduce monopoly power of Microsoft so that software and computer price can be lower in the future.

Download it by clicking the banner below of the page


Thursday, December 22, 2005

Petrol trade change from USD to Euro reason of US attack Iraq

Oriental Daily reported on today (22 December 2005) that Mr William R. Clark. One of the speaker on Global Peace Forum held at PWTC Kuala Lumpur, Malaysia on 15-17 December 2005 said:

On November 2000, Iraq had change the currency of petroleum trade from US Dollars to Euro. Later, Iraq change all USD 10 billion UN reserves from USD to Euro.The Bush administration's unreported aim was to prevent other OPEC countries to follow Iraq to change currency of petroleum trade from USD to Euro. Iraq fate has been decided at that point of time.

USD has dominant the petroleum trade since 1845 and has become a currency of international trade than. In 1990, 70% of foreign currency reserve in the respective country in the world was in US Dollar.

However, with the widening of Euro zone and the fact that 45% of OPEC import was from Euro zone. Petrodollar face a lot of pressure.

"If you understand history of petroleum. You understand 90% of war history" He said.

First world war was cause very much by controlling petroleum and consumption of petroleum.

During second world war. Russian attack by German was because of petroleum. Japan attack US because of petroleum embargo by US.

Mr William R. Clark. Author of “PetroDollar Warfare: Oil, Iraq and the Future of the Dollar”, has received two Project Censored awards for excellent in journalism, first in 2003 for his ground-breaking research on the Iraq War, oil currency conflict, and U.S. geostrategy and again in 2005 for his research on Iran's upcoming euro-denominated oil bourse. (Censored 2004: The Top 25 Censored Stories, Seven Stories Press). He is an Information Security Analyst at Argosy Omnimedia, and holds a Master of Business Administration and Master of Science in Information and Telecommunication Systems from Johns Hopkins University. He lives in Rockville, Maryland.

Link: Petrodollar Warfare Oil, Iraq and the Future of the Dollar


Wednesday, December 21, 2005

Outdated of knowledge and new IFRS -2

This is continuation of my previous post. I have stated that

Traditional method of value a company using Net Tangible Assets (NTA) has been outdated. World richest person Bill Gates's Microsoft doesn't own any factory nor his company own many real estate or other form of tangible assets. How his company market capitalization enable him to become richest man in the world. His company assets are in intangible form ....... Copyright of software and human capital.

Thus, how valuation of company in new economy become a challenge of accounting profession.

For the last one year. You might saw some 40 something part qualifying accountant, enroll to the college to study their professional qualification again. Those who qualified earlier, will have all their knowledge obsolete on 1 Jan 2006 in Malaysia( Other countries are much earlier).

Today, I read an interesting post on Jeff Ooi's blog. A guest blogger who is a Chartered Accountant member of MIA and ICAEW and claims to know a thing or two about accounting standards write on an argument on who should absorb the cost of applying new accounting standard.

For me, this is a non issue. If you hire a newly qualified Accountant. He has been study the New International Financial Reporting Standard (IFRS) over the past few years and he able to come up with the new accounts complying with the new standard with no extra cost.

For old Accountant. Your knowledge is obsolete. Either you have to go back to your college or you have to attend some Seminar to update your knowledge.

The world is changing.

Valuation of company and intangible assets

From production economy wherenet tangible assets is important like General Motor or Ford. Now the biggest company list dominated by new economy company like Microsoft, where no factory of real property. Where company main property is copyright and staff / human resources. How the accounting report reflect the large market capitalization of share price?

Fair value accounting

Then, with all the new financial intrucment, like derivative, option, future contract, bond and globalization which cause cross border investment more easily done than previously. All this increase financial risk and foreign exchange risk of a company. Company exposure to such risk can bankrupt over night like Baring, Enron, Worldcom. How financial statement or company accounts reflect such risk to give earlier warning to the management.

Thus, a new financial standard is needed to reflect such risk in the accounts and to give earlier to the investor and the management. This call "fair value" accounting compare to "historic" cost accounting. A large part of the new standard is just to transfer from historic accounting to fair value accounting. Once understand this concept. It is easy to understand why that particular standard need to change.

In historic cost accounting. Profit is more stable. Like if property cost RM100,000 to buy. It would recorded as RM100,000 every year, maybe some depreciation. However, in fair value accounting under new accounting standard. You have to determine the fair value of the property every year. If the market value of the property diminish to RM50,000. You might have to write off RM50,000 and your accounts would have RM50,000 more than accounts prepared by old standard. If the property in foreign country. Devaluation of currency also have to take into accounts. Thus, profit and loss will fluctuate more than old accounting standard. In a Asia financial crisis situation like 1997, where Malaysia currency depreciated. It will reflected in company accounts immediately if company have EuroBond or foreign currency loan.

New Remuneration Packages

Now a lot of company give Employee shares option (ESOS) as part of the remuneration packages other than salary. Most company just recorded as additional shares being issue. However, this is a cost to the company like salary. World second richest man Warren Buffet does not like the old accounting treatment. Thus, New accounting standard also provided a standard on this new remuneration packages.

Radha K Vengadasalam example must be for non-listed company or small and medium company. Public listed company have to do Quarterly report now and cannot relied on auditor until year end. They have to make announcement every quarter.

As I have mentioned in my previous post. Passing an exam too fast might not be at your advantage in this knowledge economy. Knowledge obsolete faster than you can imagine. Thus, A Continue Professional Education (CPE) is required if you pass too fast.

However, I feel after few years. Every old Accountant can master the new accounting standard like old Accountant can used spreadsheet like Microsoft Excel now.

New accounting standard like fair value accounting have not tested it effectiveness as it almost change and implemented immediately worldwide. Any weakness in the system compare to old standard have not tested in practice.

However, this historic transformation, which may affect the country's economy if not carried out successfully, should be taken at a wider scale to avoid further public criticism. Failing to respond to users' feedback may only arouse suspicion and result in a higher resistance to change.

Write Dr Hassan Ali , associate professor with the school of business, Swinburne University of Technology (Sarawak campus)


Tuesday, December 20, 2005

South Korea, Another `BRIC' in Global Wall

Four years ago, Goldman Sachs coined the acronym to describe the four nations with the potential to become important economies and turn that promise into reality. The criteria included macroeconomic stability, political maturity, openness of trade and investment policies and quality of education.

That's the upshot of a new Goldman Sachs Group Inc. report on the so-called "BRICs'' economies, or Brazil, Russia, India and China.

next generation of BRICs :

Now, O'Neill and his global team are offering a glimpse at the countries that might constitute the next generation of BRICs. Dubbed the "Next Eleven,'' the list includes Bangladesh, Egypt, Indonesia, Iran, South Korea, Mexico, Nigeria, Pakistan, the Philippines, Turkey and Vietnam.

Oh, Malaysia is not on the list.

However, Indonesia is on the list. The is still a hope from BRIC to IRIC.

However, O'Neill said one stands out in Asia: Korea. Asia's No. 3 economy,is better placed than most others to realize its potential due to its growth-supportive fundamentals.'' (Aside from Korea, Goldman Sachs' other favorite is Mexico).

If South Korea able to elevated and become BRICK. East Asia Submit held last week, which Russia try to join will form a strong triangle among Russia-China-Korea. If South East Asia country able to change from BRIC to IRIC. Then BRICK would become IRICK. Which mean Indonesia, Russia, India, China and Korea....IRICK comprises all countries than attend East Asia Submit last week.

I have benchmark Vietnam with Mexico previously. Thus, Vietnam also have great potential to become second tier develop country. With Philippines become the third tier. Malaysia, although not on the next generation eleven list, but surrounded by three develop countries....Indonesia, India, Philippines, and Vietnam farer a bit might tend to benefit. It is time we try to plan how to take advantage on such situation.

Update: Global Voice Online


Monday, December 19, 2005

WTO resume in Geneva in January.

It was a traumatic week for the people in Hong Kong last week when thousands of citizen groups held peaceful demonstrations and hundreds of activists and farmers staged protests on the streets as the World Trade Organisation held its ministerial conference.

The WTO obviously attracts lots of passion. But the big decisions were not taken at Hong Kong and the talks will resume in Geneva in January.

The battle will resume in January as the WTO reconvenes after the Christmas break.

And another ministerial meeting may be needed within three or four months into the new year.

The European Union (EU), the stumbling block to the negotiations to expedite export subsidies' elimination, should start reducing a substantial portion of these subsidies before the 2013 deadline, International Trade and Industry Minister, Datuk Seri Rafidah Aziz said Sunday.

Earlier, on 9 December 2005, Joseph E. Stiglitz, professor at Columbia University, was the recipient of the 2001 Nobel Prize in economics stated that :

"In the end, developed countries got what they wanted, and developing countries were told to be patient: Eventually, the developed countries would fulfill their part of the deal. Even as the rich countries urged developing countries to make quick adjustments, they claimed that they needed a decade to make the transition to a quota-free textile regime. In truth, they were just buying time; they did nothing for a decade, and when the quotas finally ended last January, they pleaded that they were still not prepared, and thus negotiated a three-year extension with China. "

Professor Joseph E. Stinglitz coincidentally same view point with me here. Read what he has wrote.

Link : KickAas
Updated: Six day in Hong Kong: Poor countries get raw deal one again


Saturday, December 17, 2005

Nazri, Noh Omar and cabinet reshuffle

The dust is gradually settle on this busy week. First Asean, Asean+3, East Asia Submit. Then Global Peace Forum and then WTO meeting in Hong Kong. Minister of International Trade and Industry Rafidah Aziz busy handle Asean submit and then WTO meeting to end today in Hong Kong.

While media has to cover all the above plus recent strip and squats issue. It is a best opportunity to announced cabinet reshuffle to caught every one by surprise.

Whether cabinet reshuffle happen soon or later, it is interesting to analyze the fate of Deputy Internal Security Minister Noh Omar and The Human Rights Caucus chairman and Minister in the Prime Minister's Department Datuk Seri Nazri Aziz.

Media like to attend press conference call by Noh Omar previously as he usually have breaking news for media especially on corruption. He support strongly Pak Lah policies especially on eradicated corruption. Media initially expected Noh Omar would be promoted on coming cabinet reshuffle.

Whereas Minister in the Prime Minister's Department Datuk Seri Nazri Aziz have bad track record as he has investigate by ACA when he was a entrepreneur Development Minister. . Political analyst expected Nazri might be drop in the coming cabinet reshuffle.

However, what happen recently have change all the above.

Noh Omar express displeasure when the lady from China come to Parliament to look for Nazri who is chairman of The Human Right Caucus rather than him as a Deputy Internal Security Minister. He pay a price on this emotion when he choose to protect his own subordinate by asked foreigners to go back to their own country if they find the Malaysian police cruel. He later offend the media by mentioning that media has misquote him.

He was later reprimand by the Prime Minister who is also Internal Security Minister (Noh Omar direct superior) and Finance Minister 1 (Who know the important of tourist from China on our country economy).

Nazri did a good job as a Chairman of The Human Right Caucus. His act was accepted by opposition and whole Malaysian, and most important, in line with Pak Lah policy. He is expected at least to keep his Minister job, if not promoted to more important Ministry.

Home Minister Datuk Azmi Khalid, who is said handle the repatriations of Indonesian worker inappropriately and cause mini recession was assigned to head the delegation to China to explaine to the government on the incident. Thus, out of the three Minister who was unelected as a UMNO central committee. He appear more safer than the other two.

It is interesting to see what will happen then!

Update: When I write the above article. I so not know The Sun have published an interview with Datuk Seri Nazri Abdul Aziz. Datuk Seri Nazri Abdul Aziz give explaination on ACA investigation, his effort to reform parliament by forming more non partisan caucus. I have more respect on him after reading such interview. As a human, I understand his explanation on why he loss temper on M. Kulasegaran case. However, such incident really sent bad image on him if he never give explanation. A leader should not only be fair and reasonable but also seen be fair and reasonable. Hope he improve in such area in the future. Read the interview here


Friday, December 16, 2005

Strip and Squats: The Real Issue

The Strip and Squats issue started when A 35-year-old housewife claimed she was forced to strip at a police station in Sungai Buloh. The incident started On Nov 3, the housewife was travelling with another Chinese national in a car driven by their Malaysian friend when it was stopped at a police roadblock in Sungai Buloh.

The woman said she and the other Chinese woman produced their passports, but the policeman was not convinced that the documents were genuine.

Using a hand gesture, the policeman allegedly demanded RM500 from them.

“Since both of us were carrying valid passports, we refused to give the policeman anything. We were then taken to the police station,” she said.

Thus, they werwe taken to police station to do strip and squats because they refuse to pay corruption.

Another Iranian also claim police take RM100 from his wallet.

Thus the real issue was Corruption. It is suprising that the Commision's objective does not mentioned anything about Corruption.

I remember a lot of people said 'It takes two to tango'? The giver and the taker is guilty. Thus, the fault is not entirely at the taker (police). Those who mentioned this might imply that all Singapore citizen is not giver but all Malayian do.

However, what is the consequences of not pay? Strip and squats or get sue by a police?

When the women on the video clip turn out to be a Malay. Most BN'sMP think it is less serious! In fact, it is more serious as police is abusing your own race. Every Malaysian would not be spare. Why BN need Teresa Kok a DAP member to protect your own race while BN's MP choose to protect the police and not the rakyat?

video gadis lokap 1

Related Link: Ear Squats: The Real Issue
Other Post: Police should under state government!


Thursday, December 15, 2005

How to discourage culture of poison pen letter

"One weakness of bumiputra involve in business is they operate a business organization like a political party. With a lot of poison pen letter circulating around." I wrote previously.

This has confirmed when Datuk Kalimullah Hassan the group editor-in-chief of The New Straits Times Press (M) Bhd (NSTP) tell The Edge the reason he is stepping down is as follow:

"Such were his early days in a company that had succumbed to the Malaysian trait of complacency and back-stabbing. Change means having to rework the system, which in turn equates to hard work. Those not willing to change were moved. New blood was brought in from outside. Not surprising then that nasty e-mails and SMSes about the changes he was pushing through wound their way into his office as well as Internet websites, which naturally affected him on a personal level. "

One of my reader "Old Man"(Note : Not Good Man) ask on one posting: Can you give some advise on "office politics?"

I never response to that post as I have no exact answer on it and I feel I have something more important to post than discuss on such topic.

Some blogger choose to published poison pen letter they received. The worst is the recent racist opinion in Prime Minister of Malaysia's website which will create racial crisis.

I feel that bumiputra have to change this culture. They might follow unemployed chinese to work overseas to slove problem themselves rather than spend their time writing poison pen letter. This would improve their own competitiveness and whole Malaysia competitiveness.

Thus, I choose to write about this which I have read from Oriental Daily.

When email was just introduced. An Executive Chairman of the company want to encourage the used of technology. Thus, he published his email address to the whole company, and mentioned that every employee regardless of their position can send email to him and he promise all report would be taken care.

He was unexpected that his email was floated with poison pen letter. The volume become unable for him alone to handle. Thus, he invite an internal auditor to help him to handle all the complaint. After a while, things become out of control again. Thus, the internal auditor eventually have to handle like below:

1) All Anonymous email will be ignore. You must quote your name if you want to make a complaint. What if they complaint their superior ad their superior know who they are? But, if you do not trust even the Executive Chairman, the highest people in the company. You must have something to hide. Your complaint will be ignore.

The above have reduce a lot of poison pen letter received. But the volume still remain large. It is difficult to check every one in detail if just internal audit department is involve. Thus, another method is being used:

2) You have to compare the work performance of two person. If the person who send in the email usually perform better than the person his complaint. Then his complaint is likely to be true. If a person usually have bad performance complaint about a person usually have good performance. Then, this is more likely an office politic. His complaint will be ignore.

Thus, if you want to make complaint. Work hard to have good performance. Then people in the company will spend more time to work hard rather than spending their time writing poison pen letter.

Hopefully, this will promote hard work culture rather than back-stabbing culture.


Wednesday, December 14, 2005



Kita semua kaum Cina di mana sahaja kita berada mestilah berbangga dengan bangsa kita, samada Cina Amerika, Cina Singapura, Cina , Taiwan dan Cina Malaysia. Kita mestilah mengekalkan identiti kita. Di Malaysia, kita mesti memberitahu anak-anak kita dan mengajar cara-cara mereka perjalanan halus. Setakat ini oleh kerana kedudukan kita, kita tiada pilihan untuk memilih kerajaan yang majoritinya dikuasai oleh orang Melayu. Tetapi kita sedar dibidang perniagaan dan perindustrian, orang Melayu tidak ada melainkan mengekalkan bangsa kita (Cina) sebagai unsur utama meninggikan ekonomi Malaysia dengan meletakkan keutamaan Bahasa Manderin atau Kantonis di dalam akhbar tempatan sebagai syarat penerimaan atau syarat kelayakan perlu. Maka orang-orang Melayu tentunya terpinggirdari bidang pekerjaan tersebut. Begitu juga kalau terpaksa kita ambil orang melayu kerja, kita pilih yang wanita melayu untuk cukupkan Kouta dan jangan ambil Lelaki Melayu kerana lelaki ini bersifat memimpi n dan ada wawasan tinggi lebih bersemangat kental dan berani tanya itu dan ini, kalau wanita melayu mereka agak lemah dan banyak menurut saje arahan kita. Jadi kita mengambil kesempatan ini atas kedudukan kita dan meminta hak-hak politik. Orang-orang kita yang bergiat di bidang pelajaran hendaklah! pastikan bahawa generasi yang akan datang tidak akan diajar segala pengorbanan orang Melayu, terutama sekali dalam pelajaran sejarah, Ilmu alam dan lain-lain mata pelajaran, baikpun di sekolah rendah mahupun di sekolah . Kita aujudkan dan hebohkan tentang maksiat dikalangan pelajar melayu agar kerajaan sekarang hentikan bantuan pada pelajar melayu dan juga pelajar kampung. Kita mesti mengajar anak-anak dan anak orang Melayu supaya mempunyai pendirian bahawa kejayaan itu bergantung semata-mata atas kebolehan. Untuk tujuan ini kerajaan Singapura yang kita harus banggakan kerana telah berjaya memecah-belahkan orang-orang Melayu dengan cara membahagikan mereka kepada banyak puak seperti Banjar, Acheh, Bugis, Mandaling, Boyan dan lain-lain. Dari kesannya jiwa rancangan ini, orang Melayu yang dulunya merupakan 69% daripada penduduk Singapura, sekarang hanya tinggal 10% sahaja. Sekarang mereka tiada pilihan melainkan memuji kerajaan Singapura kerana memberi mereka satu kestabilan, keadilan dan harapan untuk masa depan iaitu mana-mana bentuk yang kerajaan suka dan fikirkan, pasti mereka terima, sebabnya orang Melayu di sana tiada mempunyai suara lagi dan mereka akan tetap menemui kegagalan. Sebagai orang Cina tulin, saya juga berbangga dengan cara yang dilakukan oleh Ketua Menteri Pulau Pinang untuk memecah belahkan orang-orang Melayu di sana. Beliau telah berjaya mengambil tanah-tanah orang-orang Melayu dan memajukannya sebagai kawasan perumahan dan perindustrian (dalam geran ada nyatakan 30% jenis pekerjaan sekurangnya mestilah dari orang Melayu tapi mereka beri jawatan seperti pengawal keselamatan dan operator sahaja, jawatan penting dan teknikal yg bergaji, RM3 ribu keatas semua dari Orang Cina kecuali melayu yang ada kepentingan bagi mereka itupun seorang dua saje). Oleh kerana harga rumah-rumah itu terlalu tinggi bagi orang Melayu, mereka tiada keupayaan langsung untuk memiliki rumah-rumah tersebut. polisi ini tidak sahaja harus dilakukan di Pulau Pinang, tetapi juga di lain-lain tempat , banyak orang melayu pindah ke Seberang Perai. , Mereka takut kalau Pak Lah naik, dia akan pindah Pusat kerajaan Pulau Pinang dari Komtar ke Kepala batas, kerana orang Melayu banyak disana, nanti banyak kemudahan dan aset harta akan meningkat dan orang melayu akan dapat faedah.Mereka sedang mempercepatkan agar pusat kerajaan dibuat segera di Bayan Bay, Sg,Nibung supaya hasrat untuk berpindah ke Kepala Batas dihauskan. Tujuan kita ialah untuk menguasai segala kegiatan perdagangan yang berkaitan dengan bahan makanan, enjin, bank-bank serta pertanian. Alasan yang munasabah perlu dicari dan dikemukakan kepada kerajaan untuk menaikkan harga barang-barang keperluan harian. Inilah yang kita akan terus gunakan untuk mendapatkan kekuasaan politik di Malaysia. Oleh kerana kita telah kukuh di bidang Antarabangsa, kita mesti menganggap bahawa saluran penyebaran am yang ada pada kita. , Setakat ini, dunia menganggap bahawa kerajaan Malaysia sekarang adalah anti Cina dan Pro-Melayu dan juga kita orang Cina ditindas. Kita sekarang telah banyak di Pulau Pinang dan ini markas kita , kita mesti kerjasama dgn orang kita di Singapura, supaya satu hari Pulau pinang boleh jadi milik kita secara yang tak disedari, banyak anak-anak didik kita telah diserapkan dalam kerajaan Tempatan, walaupun dalam ker ajaan negeri maseh dimonopoli oleh orang Melayu. Walau bagaimanapun, kebelakangan ini terdapat langkah-langkah yang diambil oleh elit-elit Melayu untuk mengubah gambaran ini dan menyuarakan apa yang sebenarnya berlaku. Kita sebaliknya mematahkan langkah-langkah itu sebelum ianya berjaya dilaksanakan.Dalam bidang politik, orang-orang Cina haruslah bergembira dengan perpecahan demi perpecahan terlibat di kalangan orang-orang. Kita tenggelamkan semangat orang melayu untuk menghidupkan Persatuan Melayu macam GPMS dll. Ini bahaya bagi kita, kita hiburkan pemimpim Mel ayu Negeri dengan apa yang dia mahu. , Saya sebagai orang Cina, sangatlah bergembira untuk memberitahu anda bahawa salah satu sebab penyingkiran itu adalah jarum dan tindak-tanduk teman-teman kita Gerakan dan MCA di dalam Barisan Nasional dan DAP dari luar. Sekarang tibalah masanya untuk kita menanam perasaan benci di kalangan orang-orang Melayu terhadap pemimpin mereka. Kalau kita bijak menjalankan operasi kita, kita akan berjaya mengasingkan Perdana Menteri sekarang ini yang terlalu jujur menjadi seorang ahli politik. Kalau kita orang-orang Cina bersatu, kita berjaya memecah belahkan Dato' Sri Dr.Mahathir Mohammad dengan Dato' Sri Anwar Ibrahim, kumpulan Abdullah Ahmad Badawi dengan Kumpulan Najib Tun Razak. Apabila British meninggalkan Malaysia, pemerintahan adalah di tangan beberapa orang Melayu pilihan. Kita ketahui bahawa pemimpin-pemimpin Melayu ini kiranya disukai oleh orang Melayu sendiri. , Pada keseluruhannya, mereka adalah orang-orang miskin tetapi bernafsu besar. Kita berkeupayaan memberikan apa yang mereka mahu. Kita akan terus mendapat apa yang kita kehendaki dari mereka. Kemudia sesudah kita memberi mereka secukupnya, kita akan mendedahkan mereka ini. Kita akan meminta mereka supaya dilucutkan daripada jawatan-jawatan mereka. Kita tidak akan rugi apa-apa dengan pemecahan itu, malah menguntungkan orang-orang Cina. Pekerjaan ini mesti dijalankan dengan licin, supaya intelek-intelek Melayu tidak akan menyedarinya. Setakat ini kawan-kawan kita di bidang perniagaan telah berjaya mengenepi!kan Dr Mahathir, Dr Abdul Rahman Yaakob dan semua pelampau-pelampau dalam UMNO termasuk juga sektor kerajaan .Kita orang-orang Cina harus bangga kerana orang-orang Melayu yang menerima rasuah ini telah diletakkan di badan-badan berkanun. Di UDA kita telah mendapat keuntungan yang banyak walaupun orang kita nombor dua di situ. Mereka yang tidak mempunyai pandangan yan g kuat akan terus sanggup menjual orang-orang dari bangsanya sendiri, kiranya mereka diberi apa yang mereka kehendaki dan kita pula hendaklah menggunakan kelemahan mereka ini untuk kepentingan diri kita. Kita akan gagalkan mereka dengan Tentera Darat, Laut dan Udara. Kita akan terus gagalkan mereka dalam polis. Kita telah buktikan bahawa tanpa kita orang-orang Cina, mereka tidak akan mendapat apa-apa maklumat berkenaan dengan kegiatan Komunis. Kita juga perlu bekerjas!ama dengan pergerakan dibawah tanah kerana tujuan kita adalah sama iaitu menguasai Malaysia.Kepada kita, caranya tidak lain sama ada menerusi politik atau perjuangan bersenjata. Satu perkara lagi yang patut kita gunakan adalah kebencian yang ada pada orang-orang Melayu dengan Sultan-Sultan mereka. Kita mesti menguatkan lagi kebencian ini supaya apabila orang-orang Melayu tidak mempunyai kepercayaan terhadap Sultan-Sultan mereka, mereka akan hilang suatu symbol perpaduan dan kita dengan mudah sahaja dapat membawa mereka kepada kemusnahan mereka sendiri .Untuk membuktikan apa yang saya katakan, sebagai seorng cina, kita tahu kerajaan Malaysia sekarang lemah. , Kelemahan ini terbukti dengan kegagalan mengawal harga barang-barang keperluan. Kita boleh menurun mana-mana cukai dengan menurunnya harga buah oren menjelang Tahun Baru Cina, tetapi kerajaan tidak berbuat demikian apabila tiba Hari Raya orang-orang Melayu kerana saya tidak pernah ingat harga buah kurma diturunkan menjelang Hari Raya. Pemimpin-pemimpin Melayu bertujuan untuk menolong orang-orang Melayu dalam rancangan Malaysia ke-7. Kita orang-orang Cina harus menunjukkan sokongan kita terhadap rancangan ini kerana kita tahu mereka tidak akan mencapai matlamatnya. Di sebaliknya, apabila mereka tidak memajukan rancangan Felda, kita orang-orang Cina akan mendapat keuntungan melalui pembinaan jalan, pembinaan bangunan, pembinaan rumah-rumah, parit, pemotongan pokok, penyediaan tanah dan lain-lain .Segala bentuk pembangunanakan membawa keuntungan kepada orang-orang Cina, yang juga bermakna kejayaan serta kekayaan orang-orang Cina akan bertambah.Sekarang ini saya percaya, orang-orang Cina sudahpun memegang 60% daripada kekayaan negeri ini termasuklah tanah. Sebaliknya orang-orang Melayu hanya memegang 3% berbanding 4% kepunyaan asing. Kita tidak boleh berpuas hati. Kita orang Cina hendaklah mendapatkan kekayaan orang-orang asing ini sebelum ianya jatuh ke tangan orang-orang Melayu. Taktik kita memberi saham kosong kepada orang-orang Melayu hendaklah disambung terus kepada orang-orang Melayu ini dan akan mengenepikan orang-orang Melayu lain daripada memasuki bidang kewangan terutamanya sebagai akauntan. Di bidang pelajaran kita mesti mewujudkan Universiti Merdeka secepat mungkin. Kita mesti terus menghantar beribu-ribu anak-anak kita ke Hong Kong, Taiwan, Amerika atau di mana-mana di dunia ini. Apabila mereka pulang kita akan memasukkan mereka di sektor-sektor swasta yang mengandungi 80% daripada peluang pekerjaan. Oleh kerana keadaan ini, kerajaan sekarang ini yang pro-Melayu tidak akan berjaya menguasai keadaan pasaran. Petani-petani yang terdiri dari 75% orang-orang Melayu terus tidak bertanah. Nelayan akan tetap miskin oleh kerana pegawai-pegawai kerajaan mereka sendiri sudah tidak boleh dipercayai lagi. Orang Cina harus menolong untuk memusnahkan segelintir pegawai-pegawai Melayu yang dedikasi dengan membawa mereka ke golongan kita. , Kita dengan demikian diharapkan akan membuat mereka gagal dalam tujuan asal mereka. Ini kita pastikan lakukan dengan usaha bersama antara sektor swasta atau kerajaan. Beberapa di kalangan Cina mungkin bertanya sama ada boleh atau tidak mengambil alih negara ini dengan pasukan tentera. Saya menjawab, mereka hanya general-general bodoh. Lihatlah sahaja kelulusan mereka dan pengalaman mereka dan lihat pula apa yang berlaku di Indonesia. Di Indonesia mereka semua boleh dibeli. Jadi, setelah kita memegang kuasa politik, kita boleh ketepikan pasukan tentera ini. Kita orang-orang Cina mempunyai kebolehan untuk bermuka manis dan dipercayai oleh orang-orang Melayu dan kita harus memainkan peranan kita dengan baik. Kita akan terus bermanis muka dengan berkawan bersama mereka kerana waktu ini kita belum boleh menunjukkan niat dan belang kita yang sebenar. Contoh yang paling konkrit kita mengalami kekalahan teruk dalam peristiwa 13 Mei yang lalu. Saya mempunyai hubungan dengan pihak atasan dan saya tahu apa yang ada di dalam otak mereka, dan apa yang difikirkan. Pada keseluruhannya, pemimpin-pemimpin sekarang sedang takut menemui pengundi mereka. Kita mesti mengumpulkan tenaga dan usaha mematahkan mereka dengan cara perlahan-lahan. Pada masa yang sama juga kita mesti perkuatkan dan mengenepikan risauan kesangsian orang-orang Melayu terhadap pemimpin-pemimpin mereka. Ini kerana terlalu jelas ketidakstabilan dan kemiskinan masyarakatnya. Akhirnya diharapkan mereka ini tidak akan berminat untuk mengundi dan membiarkan takdir yang menentukannya. Kita akan membuat penentuan ke atas mereka dan masa depan mereka kerana orang-orang Cina akan menjadi pemimpin-pemimpin mereka itu.

, Oleh Dr. Ng. Seng

The above message has been posted to a website of Prime Minister Department and has been deleted after Jeff Ooi's post. The above is "copy and paste" from Prime Minister Department's website before it deleted as a reference to my comment

Tuesday, December 13, 2005

Racists opinion in Prime Minister of Malaysia's website

This is written regarding this on here and here. and Malaysiakini here

I don't think it is written by a Chinese.

1) I think majority of the chinese in Malaysia cannot understand all the Malay vocabulary on that article.

2) We rarely have Ng as a middle name. Ng is a family name. Thus, we have Dr Ng. Not Dr Ng Seng. If full name is Ng Seng Keat. He might call Dr Seng Keat. Not Dr Ng Seng. He totally not understand the family name and last name system of chinese. Even some have one name like in China. They should not have full stop(dot) after Ng at the bottom of the articles be Dr Ng Seng. Not Dr Ng. Seng. (Abdullah b. Yusoff?! )

3) Why chinese employed Indonesian as their maid and as restaurant worker. Because they able to do their job. Some advertisement mentioned that a candidate need to know mandarin because it is dealing with Taiwan supplier or China supplier. Or maybe the boss is uneducated unable to communicate with other language or their customer is uneducated. What is the employment rate of Malay. Who cares? Why we need to deprived their employment opportunity. The writer do not understand the Chinese thinking. Chinese is the biggest opposition of repatriation of foreign worker like Indonesian. Actually chinese do not care what is the employment rate of Malay. Nor they care the employment rate of Chinese.What they want is : salary is low and able to reduce their burden. Thus, the writer is not chinese as he do not understand the thinking of Chinese.

4) Chinese also hurt by inflation. Chinese also upset government unable to control the price. He is wrong that Mandarin orange is cheap. He must never buy Mandarin orange before. Even a person never buy mandarain orange before but read chinese newspaper know that mandarin orange is increasing yearly. Thus, he (writer)is not a chinese.

5) Chinese contractor also never employed chinese as contruction worker but Indonesion. Because the salary is much lower. The chinese construction worker get unemployed! who care? Can unemployed chinese construction worker complaint to the government? Do you think government able to solve their problem even they write 100 article like that. No, they have to help themselve. They work in Singapore, Taiwan, Japan as contruction worker or factory worker(illegally), some work in restaurant in Australia, US, UK ,Netherland German and French illegally!!!

6) Does he know that local government chief or chairman of Georgetown is hold by a Malay if not mistaken. Chinese in local government....parking attendant only. Why Penang Chief Minister is speechless when AP Land Chairman accused Penang state government inefficiency. Does he has something he unable to say?

7) I don't think any chinese aware we have a second in command in UDA nor it benefit from UDA. Majority of chinese know UDA is a "Tun Daim school of business management " where it's graduates included Renong's Halim Saad, MAS's Tanjuddin Ramli, Samsuddin Abu Hassan.

The person (writer) likely is insider of UDA

8) A chinese doctor is unlikely to write something like this. Majority of Chinese doctor joint Barisan Nasional. A chinese lawyer is more likely to write something like this, as majority of opposition leader is lawyer. Thus, he do not understand how Chinese professional think. He is not chinese.

9) Does chinese afraid of Malay become Accountant. No, a chinese Accountant is more difficult to compete. Chinese do not opposed government give more license to bumiputra. Just hope that they have equal opportunity to compete. Like government can give more banking license to bumiputra. Give more bus operator license to bumiputra. But government choose to eliminate Hock Hua Bank, Ban Hin Lee bank, Pacific Bank. Take over bus operator Park May, but unable to make profit even after numerous price increase (Price increase is cause by bumiputra controlled company, partly if not fully). Government even take over bumiputra's Mini bus license and give to one person, Late Yahya Ahmand.Take over bumiputra teksi license and give to a few company. Chinese opposed this type of take over but do not opposed granting more license to bumiputra. Chinese trader afraid of Multinational like Tesco provided 24 hour service. They do not opposed more bumiputra trader to compete with them (Like Mydin). Again, the writer do not understand how Chinese think. He is not a Chinese.

Update: 10) Mereka takut kalau Pak Lah naik, dia akan pindah Pusat kerajaan Pulau Pinang dari Komtar ke Kepala batas, kerana orang Melayu banyak disana, Chinese shoould write : Kami takut kalau Pak Lah naik, dia akan pindah Pusat kerajaan Pulau Pinang dari Komtar ke Kepala batas, kerana orang Melayu banyak di sana?

11) The writer stated that chinese should cause disrespect between Malay and their Sultan. In fact, before the constitutional crisis when Sultan have more power, Chinese able to get more license, timber conssession, mining land from Sultan. However, after the constitutional crisis. Chinese have difficulties getting this license. Some license have been revoke as describe (9) above.

12) Someone in the Prime Minister Department might involve in such article as they never been deleted for so long. I think Pak Lah have some opposition of its policies in his own department.

13) He do not understand how difficult to "Bersatu" Chinese. Chinese comprises cantonese, Hokkien, Hakka etc. Chinese divided in MCA, Gerakan, DAP, Keadilan and some East Malaysia party. In religion, chinese has Christian, buddist, Islam.In Education, we have chinese educated who study confusion and those study Sekolah Kebangasaan, who do not know mandarin and confusion culture. As stated (5) above, Chinese contractor also do not employed chinese contruction worker. Chinese is not "Bersatu". Chinese "Bersatu" with money. Every chinese know that but not Dr. Ng. Seng? He is not chinese

Update: Brand New Malaysia :UMNO-reform

The abovementioned message has been deleted from Prime Minister department website. If you still want to read it. Read it here

Link : Elianto provide business opportunity to UMNO puteri member


Monday, December 12, 2005

Johor Corp replied to A Kadir Jasin

With reference to my post on A Kadir Jasin opposed Johor Corp take over KFC . Group Chief Executive of Johor Corp Bhd Tan Sri Muhammad Ali Hashim has write a reply to A. Kadir Jasin and has been published on 1st December 2005 issue of Malaysian Business.


......we are to be simply painted aside with a very broad brush as if we are an entity that is totally diassociated with the furthering of Malay, Bumiputra and national interests.......

......Indeed, all of us at the JCorp Group, Malays and non-Malays alike, share the view that serving the wider New Economy Policy cause and making a success of it through market driven and market-friendly methods is fundamental and, more so in today's global economic climate, is so critical a part of the broader Malaysian National Agenda. In fact, we have taken the stand that his mission is our very own institutional raison-d'etre going forward......

Comment: Johor Corporation has admitted that it is serving the wider New Economy Policy. I think we should not opposed that. However, I feel government should included GLC's shares in Bumiputra portion when calculating statistic on achievement of New Economic Policy. It is ridiculous to claim that bumiputra only own 18% whereas non-bumiputra find that they do not have much to share especially in banking, plantation and automobile and even fast food industry.

......I do not wish, however, to enter into such further debate here, other than to state my concern about the extensive damage alrealdy done to our corporate reputation due to his apparently one side writing. It was unfortunate that he had made no attempt to clarify matters with us, or seek to hear our side of story. We strongly feel that had he done more indepth research and a balanced and objective analysis, especially on the background situation leading to JCorp's and Kulim's involvement in the QSR and KFC acquisitions, he would probably have arrived at a different conclusion, one that i feel would be fairer and more sensitive to Jcorp's and Kulim's institutional role.

Given his professional standing and reputation, his viewpoints and writings carry a powerful influence on public perception. In the event that he or any of his associates are prepared are prepared to spend some time, my colleagues and I would be happy to relate our side of the story............

Comment: As Johor Corporation have spend some time to write the letter. Why never spend some time to included their side of the story in his letter. Shouldn't it be transparent to the public?

Update : Kulim Control 52% of QSR

The Most Competitive Bumiputra CEO in Malaysia 2005


Saturday, December 10, 2005

Benchmarking of Asia country

I have make a comparison of Asia country with western country prior East Asia Summit.

Although Ex-Prime Minister Tun Dr Mahathir express his displeasure over the present of Australia and New Zealand. Sin Chew Daily commented that a regional organisation should be able to be participate by country in the region regardless of race.

I also feel that by including Japan in Asia + 3 to balance the influence of China. American influence is there. It is not surprising that Japan suggest to include Australia and New Zealand.

Thus, my comparison would included country like Australia.

Japan - German of Asia

It is not uncommon people compare Japan with German. As both country are alliance in second world war and both country able to resurrect as economic power house after second world war.
German is most influence country in European Union whereas Japan still the largest economic entity in Asia despite it long recession.

However, in automobile industry. Toyota is like General Motor in US, Honda is like Ford in US and Nissan is like Daimler Chrysler in US. Thus, it automobile industry is like US in Asia.

Other than automobile industry. Japan is like German of Asia.

Korea- French in Asia

Korean people used to compare Japan and Korea with German and French. German and French are both influential non-English speaking country. Similarly, Japan and Korea has their own language but most Asia country have chinese resident, which speak chinese language.

Similarly, economic influence of Japan and Korea to Asia is like German and French influence on
European Union.

Singapore- UK and Swizerland in Asia

Singapore government used to benchmark themselves as Swizerland in Asia especially in term of per capita income. Singapore has overtake Swizerland in term of a lot of ranking like competitive ranking. It high cost of living is like Swizerland.

UK, is a centre of foreign US dollar call Euro Dollar Market. Singapore's is the centre of US Dollar in Asia, over take Hong Kong.Thus I feel Singapore is UK in Asia as well.

China- Potential US in Asia

China economic influence is undeniable. Even US also feel it threat in the world, not only in Asia.

Further, in term of language. People used to speak English like US and UK. Similarly, UK in Asia...Singapore also speak mandarin.

China able to become US in Asia also because it has Silicon Valley and Hollywood in Asia as well. (below)

Taiwan- Silicon Valley in Asia

Taiwan might mot independent from China. It call Silicon Valley of Asia for long time as they have strong hardware manufacturer like acre in PC. It strong in semiconductor as well.

Hong Kong- Hollywood in Asia

Although Hong Kong try very best to compete with Shanghai to become New York of China. Hong Kong is more likely to become Hollywood in Asia. Whereas Shanghai might become New York of China. Beijing is Washinton in China. Los Angeles, like Hong Kong also an important port for US.

Australia-Canada of Asia

Australia and Canada are two similar country that have rich resource, large territory with low population. Both country are migration target for Asean. Canada close proximity with US whereas Australia, might have to depend on China in future.

Thailand- Italy and Norway of Asia

Italy is alliance to German during second world war whereas Thailand allowed Japan to use it territory to attacked Malaysia. Thailand also never have war battle with Japan.

Italy however has it own brand of automobile industry, Fiat. Thailand, is like Belgium in term of automobile industry where do not have it own brand of vehicle but a centre of investment in automobile industry. Malaysia, however, has it own brand...Proton. Norway is a fisherman country. Thailand, like Norway export a lot of fish to neighboring country. Norway's telco Telenor, however, hs investment in Malaysia's Digi but not in Thailand.

Vietnam- Mexico in Asia

Mexico has close proximity to US, robust in Manufacturing industry. Vietnam close proximity with China and it robust in manufacturing industry make it a Mexico in Asia.

Update 30 Dec 2005: Vietnam's economy booms, but WTO entry stalled

Malaysia- Belgium, Sweden and Netherlands in Asia

Belgium is a headquarters of European Union as the country speak English, French, and German. German do not like to have EU meeting in French or UK. French also do not want to attend EU meeting in German or UK. But the three country willing to come to Belgium.

Malaysia, have three major race which make it a perfect Belgium of Asia. Belgium strong in Diamond trade. It also has string steel industry and automobile industry.

Netherlands have a lot of multinational jointly control with UK. Like Shell, ICI, Unilevel. Malaysia also have few company jointly control by Singaporean. Like F&N group. OCBC group. Hong Leong and Guoco group. IOI group and Golden Hope has acquired a few business from Unilevel group recently. Netherland has one electronic giant Philip. Malaysia's Hong Leong group has OYL.

ABB group jointly control by Swizerland and Sweden. As Singapore benchmark against Swizerland and UK. Malaysia as a neighbor should benchmark against Sweden and Netherlands.

Update: Sweden have communication giant Ericsson and Volvo car. Maybe Malaysia Proton should benchmark against Volvo by concentrate on heavy vehicle rather than passenger car.

Indonesia-Brazil of Asia

This is what I have stress previously From BRIC to ICIC.

Update: Global Voice Online


Towards Single Asia Currency

Battle with China on copper market is yet to over 3

This is a continuation of my previous post.

Those holding long (buy) position are playing with fire also.

The speculator realize that the conner attempt this time is not as easy as attempt to conner China Aviation Oil. Battle with SBR this time might get themselves burn this time around.

SBR auction off 200,000 tonne of copper since 23November 2005. This is to send a message to the market. They have the ability to supply the volume Liu Qibing sold out which due for settlement on 21 December 2005.

SBR might choose to deliver the goods rather than close the contract. This mean SBR have to deliver 200,000 tonne of copper before 21 December 2005 to London Metal Exchange warehouse at Singapore or Korea. SBR have to top up the deposit so that it wouldn't be force selling or corner by long position.

If the above happen. Speculator conner attempt might fail.

Financial Times in UK reported that copper stores of London Metal Exchange's warehouse in Singapore has increase 4% to2525 tonne.

Although no official announcement from SBR. Market predicted that the increase in volume come from SBR.

However, some people in the industry said SBR try to manipulate market might increase it loss to USD1billion.

Last Friday 3 December 2005. Copper price break USD4400 for the first time at London Metal Exchange. On 6 December 2005. Copper price in New York Future market also break record high.

Let see what happen on 21 December 2005.

The ending is unlikely to be predicted.

Related Link : Bloomberg The Economist The Peking Duck Paul Kedrosky's Infectious Greed The stalwart Angry Chinese Blogger


China worker in Genting strike

400 foreign worker from China who work in Genting casino as a coupler on strike. Report Oriental Daily. The strike started on Friday night when some casino customer already put their bet on the table. Coupler from China just leave the table. The act cause a mess at the casino. Customer feel surprise when they know it was a strike eventually as this is first in history for Genting.

It is fortunate that the stock market has closed at that point of time. Thus, share prices of Genting was not affected. Genting management still in the midst of solving the dispute between it worker from China.

It is learn that Genting have expel feel China worker who breach some rules and have discipline problem. Genting management intend to withheld all contractual bonus to all China worker until the end of the 3 years contractual period. Genting would only pay the bonus upon China worker completing their 3 years contract without breach any disciplinary rule.

Worker accused management of breaching their employment contract. They claim that few person have disciplinary problem does not mean that all people from China have disciplinary problem.


Friday, December 09, 2005

Battle with China on copper market is yet to over 2

This is continue from my previous Post

Over the last two year. Liu Qibing has been executing short (selling) position in London Metal Exchange while executing long (buying) position in Shanghai Future Exchange simultaneously to earn the price different between the two market. Or what professional trader call "arbigrate trade"

Malaysia "Sugar King" Robert Kwok was skillful in "arbigrate trade" in international sugar market. George Soros and other hedge fund are doing arbitrage trade on various commodity and financial intrument.

Liu Qibing strategy however, cause his short (sell) position in London making loss while his long (buy) position in make a profit. Speculator in China make a huge loss position as they taking a short (sell) position in Shanghai Future Exchange. This make Liu Qibing a dirty word among speculator in China.

This make people remember Yasuo Hamanaka, a trader at Sumitomo corporation. Yasuo Hamanaka control 5% of world copper trade at some point of time. However, he make a huge loss of USD2.6billion in a mistake in 1996.

Yasuo Hamanaka make loss by taking a long (buy) position while Liu Qibing making loss by taking a short (sell) position.

From October 2004 until March 2005, other trader said Liu Qibing is "Trading" in the market by buying and selling actively without taking a position. He close his position fast and SBR making a lot of profit in Shanghai Future Exchange as Liu Qibing able to predict the market accurately. This make Liu Qibing over confident on his own capability.

However, Liu Qibing was not lucky in London Metal Exchange. London Metal Exchange comprise 80% of world copper trading volume, while Shanghai Future Exchange and New York Future Exchange comprise 10% of world trading volume each.

This mean Liu Qibing is not as easy to "manipulate" London Metal Exchange like what he did to Shanghai Future Exchange.

Observer said that Liu Qibing loss position in London Metal Exchange amounting to approximately USD150million. If Liu Qibing doing arbigrate trade. SBR should have some profit in the local China future market, which able to offset loss in London Metal Exchange.

Liu Qibing should understand that by taking a short position without simultaneously doing a long position to hedge the risk. He has expose himself in huge risk.

Insider said that the battle between SBR and international speculator is yet to over. Who will be the ultimate winner is yet to be concluded!

Future market is a zero sum game. I the long term, market price is determine by economic development and international demand and supply. However, in short term situation like this. Future market price of copper determine long short battle and their financial back up capability.

Market insider said the settlement date of Liu Qibing short position of 150-200 thousand tonne of copper build up on London Metal Exchange is on 21 December 2005.

This mean SBR has USD200million unrealized loss position. However, the battle is yet to over.

SBR might deny the trade entirely. SBR has initially deny it has a staff call Liu Qibing initially. Later, SBR said Liu Qibing is on leave and the trade represent his own position. Not SBR.

An unname officer in SBR said that primary investigation indicate that trader should individually responsible for his own loss.

Another analyst also said that Liu Qibing trade was unauthorized. Thus, might not be execute legally.

Broker and Settlement house are worried if SBR refused to honor the trade or claim it unauthorized. Broker and settlement house might have to bear the loss themselves.

Source said that 8 future market broker, speculator and a bank has fly to Beijing to negotiate with SBR on dispute on London Metal Exchange.

Excerpt and translate from Oriental Daily.

Related Link : Bloomberg The Economist The Peking Duck Paul Kedrosky's Infectious Greed The stalwart Angry Chinese Blogger


Battle with China on copper market is yet to over 1

I have first write on China's State Reserve Bureau (SBR) involvement in copper speculation on 18 November 2005.

The Edge have write briefly on the issue on 22 November 2005:

"A trader supposed to be working on behalf of China's State Reserves Bureau is believed to have taken out a 150,000-200,000-tonne bet that copper prices would fall.

He has since vanished."

Liu Qibing, who predicted that the copper price will become bearish, intend to make a huge profit by taking advantage of price difference between the day he short (sell) and the price on settlement date. He never predicted that speculator are eyeing on his short position. Speculator pouring in long (buy) order to push up copper price to conner him.

After the news of Liu missing, international speculator to try to push up the copper price. Copper price was continuously breaking record high. It reach USD4243 record high at one point of time.

According to person in the industry. The long short battle between China's State Reserve Bureau (SBR) and international speculator started much much earlier.

A trader with more than 10 year experience said that he get aware on around 23 September 2005. At that point of time, London Metal Exchange (LME) copper price in the future market drop 3% initially, but later rebound to 7-8%.

Another trader said now at least two force are causing threat to SBR. One is George Soros's Quantum Fund represented hedge fund. Another is from Warren Buffet.

World second richest man after Microsoft's Bill Gates. Warren Buffet's Berkshire Hathaway start buying Gold and Silver since last year. This cause price of Gold and silver increase. This give pressure on copper price indirectly.

SBR has been eyeing by hedge fund this year or much earlier. The price movement of copper was unusual since in the beginning of the year. It has increase 40% in the last few month. This has divert from demand and supply equilibrium. A sign that the price has been manipulated.

SBR eyeing by speculator because of it hugh trading position in the market. The person who represent SBR on London Metal Exchange is Liu Qibing, who described as having "low position, high power"

Liu Qibing

The mess cause by Liu Qibing not only affect international copper market. It affect china copper market as well.

Liu Qibing born on December 1968, age 37. He has a Degree in Economic.

Liu Qibing come to Beijing and work in SBR after graduation. Initially work in a low position in a communist plan economy. Later, when China transform from plan communist plan economy to free market economy. SBR had to change it role in such situation.

It is when such changes that Liu Qibing was send to London Metal Exchange to become trainee for half year.

Liu Qibing take this short opportunity to improve his English. He speak fluent English. Liu Qibing seek advise from experience trader in London Metal Exchange. He learn professional knowledge in future market and gain trading experience. Liu Qibing also help in develop a link IT and communication system between London Metal Exchange and SBR.

However, his knowledge was not used immediately after he come back from London Metal Exchange.

After few years, until 1999, Liu Qibing is still a normal staff in SBR. Nobody predicted he has the influence he has today.

However, he has been promoted in 1999. In 2002, he become the core trader in SBR.

SBR initially has a trading team. Later, reduced to two man team with Liu Qibing and another trader. However, the other trader make a mistake and has been transferred. Thus, Liu Qibing become the sole trader for SBR on London Metal Exchange and Shanghai Future Exchange. A person with low position but high power!

Liu Qibing shine in his position as a trader slowly.

Two years ago. Liu Qibing spot the bull trend in copper price when other trader still do not have clue on where the market is heading. Liu Qibing is correct the copper price is on the bull for two years since 2003. Liu Qibing become a reputable trader in in china commodity market.

However, Liu Qibing prefer low profile. He do not talk much and in deep thought most of the time.Liu Qibing able to used technical analysis or chart skillfully.

Excerpt and translate from Oriental Daily

Related Link : Bloomberg The Economist The Peking Duck Paul Kedrosky's Infectious Greed The stalwart Angry Chinese Blogger

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