Old formula of success

When the economy is doing well. When there is full employment. When income is going up and up, the old formula that nothing is for free, that all govt services and essential services must operate on a profit basis seem so logical and so effective. But can the same formula continue unabated, without ill effects? The economy is still doing well, jobs are aplenty, so they said. But are the income going up and up? Yes, if one is in the top 20% of the workforce. But for many, the income increase is too little, and to many, hardly any increase, to keep up with all the increases and inflation. In fact many at the bottom are experiencing a shrinking income. The lemon has been squeezed to the point of becoming a pulp. The income of the lower end, even the self employed, have been hit by either lower revenue or higher cost. Even the taxi drivers are being squeezed by the higher cost of rental and petrol. This is a last choice occupation when all else fails. Workers, even professionals, who cannot find employment will find driving taxis and other self employed occupation as a way out. Occupations that they have to work to pay themselves. But as these people keep downgrading, lowering their expectations, they are still being constantly squeezed and their income shrinking while expenses only go up and up. The quality of life of the people at the lower end has been stagnant for many years. There were growth years and improvements in the 70s and 80s. Since the 90s, one can hardly see any betterment. All are struggling to live day to day, trying to make ends meet. And all the public services only think of nothing but hike in their fees and charges. Squeeze them dry, every drop counts.

The Malaysian Pandora Box

Abdullah Badawi came out to say that Malaysia is neither secular or theocratic. What does that mean? Najib and Mahathir said it is Islamic. PAS wants it to be Islamic. The MCA and MIC and the eastern Malaysian states claimed that the founding fathers of Malaysia wanted it to be secular. Would Malaysia be formed if it was to be an Islamic state? The answer is obvious. And the British colonial govt will not allow it. During its conception, it was plain clear to everyone that it was meant to be a secular state with every Malaysian being treated equally except for some special rights to the natives, not just to the Malays. Over the years the Bumis have shifted the goal posts gradually on the threats of another May 13 should the minorities dare to open their mouths. So what we have in Malaysia today is a state running on two principles, Islamic principles and Malay dominance. It is good that the issue is out in the open. Malaysia shall categorically state its position. If it is an Islamic state, a Malay state, or whatever, let it be clear for all and no need to beat around the bush, and everyone guessing. Once the official position is stated and adopted in the Constitution, then so be it. Those who accept it stays. Those who cannot agree with it leave. Only then will Malaysia be allowed to progress in its own chosen path without threats of racial or religious bloodbath. The Malaysians must know what kind of constitution and state principles they are supposed to live by.

NKF story - Knowing shame

The scripture says, 'fearing God is the sign of wisdom.' In life, knowing shame is a sign of honesty. Richard Yong is the first member of the old NKF Board that has apologised, according to his new lawyer, and he is also asking the gullible public, who were betrayed and hurt in the course of events, to forgive him. For a person who has done wrong and asking for forgiveness is a way of acknowledging his wrongs and feeling guilty about it. At least Richard Yong has come about to know that what he had done were wrong and shameful. It is now left to the victims to forgive him. For those who have done no wrong, there is no need to apologise nor any need to ask for forgiveness. It is the fault of the gullible public to be snooked. So do not blame the clever from cheating the public. This reminds me of what the Japanese told the Sick Man of Asia that it was China's fault for being weak. For weakness invites one to be raped. It was China's fault that Japan invaded and tried to colonise it. There is no need to apologise for the invasion.

OCBC Bank - Returning to the roots

It was not many years ago when children were encouraged to save in schools. Banks were also actively promoting savings among children by offering all kinds of schemes and attractive toys to the young savers. Then as banks grew big and strong, they find the few dollars and cents too tedious, unworthy, and costly to manage. So they start to impose a fee for savers who did not have the minimum sum in their bank accounts, something like $1000 or $1500. Small savers suddenly find that it is the bank that is doing them a service and they have to pay to keep their miserable sums in the banks for safe keeping. I think subsequently all the children savers who have less than the minimum sum stop putting their money in the big and strong friendly banks. The banks are now so rich that they find the small savers a pest. I cannot imagine where these small savers are putting their monies but very likely in piggy banks or some tin cans. Where else when no bank is going to keep their few dollars for free? Now OCBC is launching a scheme with all kinds of attractive gifts for the children to save. I believe these children will not have to pay a fee should their savings be too small. Nothing stated on this. Looking at the long run, this is a genius move, a strategic move to sign up all the future depositors to become OCBC account holders. Yes, get them when they are young and once they have got use to OCBC and have an account with OCBC, they will remain there. Unless OCBC mess it up with their services or starts the nonsense of imposing a banking charge again for small savers. Just one generation, OCBC will sign up all the new adults as their account holders. What a smart move. 'Greed has no shame'

Dow down 280 pts on Friday

Looks like Dow is bend on spoiling our National Day celebration. Just when everything is turning around, it came crashing down again. And why should the worry of subprime housing loan in the US concern us? This is their domestic management of housing loans and even if it does affect us or the world market, it should be of a bearable nature when funds withdraw some investments out of other markets to cover their losses back home. And some banks here may also be exposed to these loans but should not cause any panic. Even losses of a few hundred millions are not a life of death situation. Our economy is booming and the construction industry is full of works for the two IRs. These are totally detached from the US housing loan woes. So are many industries around the world. But if funds join the fun and short the market down, all the markets will go down regardless of fundamentals. It is about time that Asian bourses detach itself from the domination of Dow and take a life of its own. The Chinese market has taken on a character of its own and without too much foreign fund manipulations it is able to perform on its own merits. We will have to hope that sensibilities are not too badly affected and Asian bourses remain firm on Monday. But it will need some encouragement from analysts and fund managers to make some affirmations that the fall in Dow need not be so deadly and some sectors of he economy are totally undisturbed by the housing loans trouble.