Can you believe it? The Malaysian govt has announced a payout of 6.35%
dividend for their national savings scheme. And this is flat rate for
all. How could the Malaysian govt pay such a high dividend? There must
be a mistake. Or they must be announcing high dividends but they come
out with new regulations so that their EPF members can feel rich but
money no touch, cannot witdraw. Or they may benefit for high oil and
commodity prices so can afford to pay high dividends. This cannot be
true right?
No, the Malaysians simply did very well in their investments, earning
RM35 billion in the process. And their investments in equities brought
in RM19.5 billion. Holy cow, how could they do it? They must have been
employing world class fund managers to make such money to pay out such
high dividends.
I can’t believe our world class fund managers paid world class salaries
could not do better. Maybe we just need to wait a while longer for them
to make the announcements. Our fund managers must be many times better
than the Malaysians. If they cannot do better, maybe we should go over
and employ the whole Malaysian team to replace what we have. And they
are definitely cheaper and more productive.
I am very envious of their ability to make so much money and hoping and
hoping that our world class fund managers with world class pay could do
better. I have high hopes, very fat hopes.
2/17/2014
SGX - There is no elephant in the room
Since the announcement of the consultation paper and some proposals by
MAS and SGX, there were a few familiar quips by the stakeholders. We do
not want the SGX to be turned into a casino. Now who is talking? Is
there an elephant in the classroom? They could not see it, didn’t
recognise that the big mass is an elephant and pretending that not to
see the elephant?
How fake or how stupid can things be when no one seems to notice the elephant in the classroom? And an article in the ST on Saturday had this title, ‘Few quibbles over collateral proposal for contra trades’. The introduction of collateral for contra trades is perhaps the biggest thing in the consultation paper and is going to be done for the purpose of reducing exposure and risks of broking houses and remisiers and to strengthen the trading system.
One thing for sure is to hasten the demise of a dying stock market when this measure is implemented. The 5% collateral for all outstanding positions would be a callous sledgehammer smashing down on any tiny nail heads protruding. There would be many procedural problems that would make this recommendation impractical. But top most is that it is not dealing with the real problem but creating new problems. Some refinement is needed and remisier Alvin Yong came up with a logical and practical proposal, to apply the collateral only to trades above the value of $50k. It is the big contra positions that would hurt the remisiers and the brokerages, not the small positions of the small traders. And given the limited size of active traders, such an across the board ruling will simply keep the small traders from trading when their participation is badly needed in a stockmarket with no players except computers.
If MAS and SGX want to bring the stock market to a pre mature and early demise, this is the way to go. Impose the collateral indiscriminately and the last few remaining small traders will say goodbye to punting in the market. Yes they are gambling, but in a small way and with manageable and tolerable risk. It is the big churnings of computer tradings and big time speculators that are raising the risk level in the industry. They should be the targeted group for this 5% collateral. They pose huge credit risk, not the small investors and punters. They are the really gamblers, with the help of a system that is designed for them to gamble.
Is there an elephant in the room? Anyone wants to look at the elephant or choosing to look the other way and spray their little water pistols wildly at shadows? It does not need much intelligence to notice the elephant in the room.
PS. Goh Eng Yeow also wrote a piece in today’s ST explaining why forcing small traders to put up collaterals is skirting the real problem caused by big positions. Come on, who are MAS and SGX kidding, to want small traders to put up collaterals even for trades of $1000 or $10,000 exposure? Would it solve the gigantic loss problem or would it kill the market when small retail traders just stay away, like the removal of teletext on TV?
How fake or how stupid can things be when no one seems to notice the elephant in the classroom? And an article in the ST on Saturday had this title, ‘Few quibbles over collateral proposal for contra trades’. The introduction of collateral for contra trades is perhaps the biggest thing in the consultation paper and is going to be done for the purpose of reducing exposure and risks of broking houses and remisiers and to strengthen the trading system.
One thing for sure is to hasten the demise of a dying stock market when this measure is implemented. The 5% collateral for all outstanding positions would be a callous sledgehammer smashing down on any tiny nail heads protruding. There would be many procedural problems that would make this recommendation impractical. But top most is that it is not dealing with the real problem but creating new problems. Some refinement is needed and remisier Alvin Yong came up with a logical and practical proposal, to apply the collateral only to trades above the value of $50k. It is the big contra positions that would hurt the remisiers and the brokerages, not the small positions of the small traders. And given the limited size of active traders, such an across the board ruling will simply keep the small traders from trading when their participation is badly needed in a stockmarket with no players except computers.
If MAS and SGX want to bring the stock market to a pre mature and early demise, this is the way to go. Impose the collateral indiscriminately and the last few remaining small traders will say goodbye to punting in the market. Yes they are gambling, but in a small way and with manageable and tolerable risk. It is the big churnings of computer tradings and big time speculators that are raising the risk level in the industry. They should be the targeted group for this 5% collateral. They pose huge credit risk, not the small investors and punters. They are the really gamblers, with the help of a system that is designed for them to gamble.
Is there an elephant in the room? Anyone wants to look at the elephant or choosing to look the other way and spray their little water pistols wildly at shadows? It does not need much intelligence to notice the elephant in the room.
PS. Goh Eng Yeow also wrote a piece in today’s ST explaining why forcing small traders to put up collaterals is skirting the real problem caused by big positions. Come on, who are MAS and SGX kidding, to want small traders to put up collaterals even for trades of $1000 or $10,000 exposure? Would it solve the gigantic loss problem or would it kill the market when small retail traders just stay away, like the removal of teletext on TV?
Chuan Jin’s credibility in question
The weekend walkabout and community dialogue by Chuan Jin at Pasir Ris
was very badly received if the media reports and comments in social
media are real. The issue of foreigners working here was the main point
raised by the public and Chuan Jin’s reply fell flat in his face. If he
is going to continue in this manner his credibility as a minister, and
the govt he represents will not go far.
Chuan Jin’s points could be seen in three areas. He was harping on the need to limit the number of foreign workers and this infuriated the people. Everyone is calling him deaf or refusing to listen and understand the people. No one is complaining that much about foreign workers as the jobs they were doing were not wanted by the citizens. Going after the foreign workers is a seen as an intended diversion by the MOM, skirting away from the real issues of foreign PMEs.
The comments were furious, that PMEs were not even mentioned in the conversation when it was the major bugbear of the people, fake talents and non talents stealing our high paying jobs from our PMEs. The MOM or the govt can try not talk about this problem but the people are not daft and would not want to be daft anymore. They are dragging Chuan Jin by ear to look at the problem they are angry about. Don’t run away from the real problem in question.
And the uttering of the word ‘local’ kept coming out only to confirm that the govt is still steering the same course and nothing has changed. As long as PRs or locals are employed, the citizen’s plight is not something they want to talk about or to know. The govt only thinks locals, and the citizens would not take that as an answer.
We are citizens, not locals. The local/PRs are not citizens. Is this simple enough to understand? Of course the govt does know what locals and citizens meant. Of course Chuan Jin knew what he was talking but it was a case of not wanting to engage the people in the real issue. The MOM or the govt will continue talking about locals, about jobs affecting foreign workers. The citizens will be talking about citizens and about PME jobs.
How far and how long can this divide be maintained without affecting the credibility and trust of the govt in the eyes of the people? The people would not take this diversion and not wanting to engage them lying down.
My advice to Chuan Jin is to face the problem squarely and stop running away from it. It will not work anymore today. The govt must take the people seriously. Ignoring the people and their problems will cost dearly in votes. It will be reflected in the next GE and can be very costly for sure.
Chuan Jin’s points could be seen in three areas. He was harping on the need to limit the number of foreign workers and this infuriated the people. Everyone is calling him deaf or refusing to listen and understand the people. No one is complaining that much about foreign workers as the jobs they were doing were not wanted by the citizens. Going after the foreign workers is a seen as an intended diversion by the MOM, skirting away from the real issues of foreign PMEs.
The comments were furious, that PMEs were not even mentioned in the conversation when it was the major bugbear of the people, fake talents and non talents stealing our high paying jobs from our PMEs. The MOM or the govt can try not talk about this problem but the people are not daft and would not want to be daft anymore. They are dragging Chuan Jin by ear to look at the problem they are angry about. Don’t run away from the real problem in question.
And the uttering of the word ‘local’ kept coming out only to confirm that the govt is still steering the same course and nothing has changed. As long as PRs or locals are employed, the citizen’s plight is not something they want to talk about or to know. The govt only thinks locals, and the citizens would not take that as an answer.
We are citizens, not locals. The local/PRs are not citizens. Is this simple enough to understand? Of course the govt does know what locals and citizens meant. Of course Chuan Jin knew what he was talking but it was a case of not wanting to engage the people in the real issue. The MOM or the govt will continue talking about locals, about jobs affecting foreign workers. The citizens will be talking about citizens and about PME jobs.
How far and how long can this divide be maintained without affecting the credibility and trust of the govt in the eyes of the people? The people would not take this diversion and not wanting to engage them lying down.
My advice to Chuan Jin is to face the problem squarely and stop running away from it. It will not work anymore today. The govt must take the people seriously. Ignoring the people and their problems will cost dearly in votes. It will be reflected in the next GE and can be very costly for sure.
Usman Harun – What is the drumming all about?
Everyone is talking tough and acting tough. Even in the social media,
many are thumping their chests and acting like fighting cocks. We are
the strongest fighting force in the region with all the latest and most
expensive American hardware that on paper make us look very good. We are
able to take on anyone, big country as well. We fear not, fear no one.
This is the kind of silly talks that has engulfed the empty vessels in
social media. These empty heads think war is a computer game. We have
the software and the hardware, so we can show off, like the Americans.
We can start wars and thump anyone who doesn’t agree with us or who
doesn’t respect our feelings.
The difference is that the Americans are an Empire and we are just a dot. A rat standing on the head of a tiger and bossing around with bigger animals must remember not to fall down from the tiger’s head. It will be trampled to minced meat and devoured. The Americans also have this capability of taking the war to other countries and fight wars out of American soil. They could hit others and not be hit. The only time when they wet their pants was during the Twin Tower incident. George Bush was running for cover inside America when the enemy took the fight into the American heartland.
Does anyone remember and notice what really happened during Confrontation? Indonesian paratroopers landed in Johore and Singapore, also in East Malaysia. Though everyone claimed that there was no declaration of war, these were acts of war. Why was it that Malaysia did not responded by attacking Indonesia? The British were still with us and still a superior military force. They too did not start a war with the Indonesians. They were only reacting and thinking of fighting the paratroopers and marines infiltrated into our soil. It was just defensive measures, no offensive operations. Singapore also did not send any military forces to attack the Indonesians after the MacDonald House bombing. Maybe we were militarily weak. But we have the British still obligated to protect us. Their forces were still in the island.
The thing is that no one would want a war. Do we want a war? We have the superior weapons of war. Do we want to play with war?
When China was unable to detonate its atom bomb, its top scientist who could detonate the bomb did not want to get involved in making a weapon of mass destruction. He finally was persuaded by the missile and rocketry expert Qian Xue Sen to work on the bomb. The reasoning, to have the atom bomb and not using it was not the same as not having the bomb. The moral of the story was to have the atom to avoid being attacked, not to attack another country or go to war with the bomb.
Singapore may be armed to the teeth, but it must not to be eager to go to war. The powerful weapons we possessed are there to avoid wars. All the cocky and arrogant talks were provocative, unnecessary and unhelpful. Our potential enemies know what we have and what we are capable of. That is good enough to keep them from adventurism, to want to have a war with us. Our capability and military strength must not be excuse for adventurism and foolish thoughts and talks.
Our superior strategy is to be in a position of strength to avoid war. We have been very successful in this and as long as war is prevented. Our strategy depends not only on our superior weapons but on a rational, thinking and wise enemy. When the enemy becomes irrational, emotional and agitated, we have lost. When war starts, we have failed. The death toll and destruction of a war would not be 3 dead and 33 wounded. It would be thousands of times more serious and destructive. Our first strike strategy is only a strategy and is not our special privilege. Do you ever think that our enemy can also have a first strike strategy and when they hit first we are as good as gone?
Don’t always think that we are a few steps ahead of our enemies, that only we can think and plan. Our enemies also can think and can plan and know our every move. Arrogance and unestimating the enemies are the first step to defeat.
Stop the drumming please. And stop walking around and crowing like a silly cock.
Kopi level - Green
The difference is that the Americans are an Empire and we are just a dot. A rat standing on the head of a tiger and bossing around with bigger animals must remember not to fall down from the tiger’s head. It will be trampled to minced meat and devoured. The Americans also have this capability of taking the war to other countries and fight wars out of American soil. They could hit others and not be hit. The only time when they wet their pants was during the Twin Tower incident. George Bush was running for cover inside America when the enemy took the fight into the American heartland.
Does anyone remember and notice what really happened during Confrontation? Indonesian paratroopers landed in Johore and Singapore, also in East Malaysia. Though everyone claimed that there was no declaration of war, these were acts of war. Why was it that Malaysia did not responded by attacking Indonesia? The British were still with us and still a superior military force. They too did not start a war with the Indonesians. They were only reacting and thinking of fighting the paratroopers and marines infiltrated into our soil. It was just defensive measures, no offensive operations. Singapore also did not send any military forces to attack the Indonesians after the MacDonald House bombing. Maybe we were militarily weak. But we have the British still obligated to protect us. Their forces were still in the island.
The thing is that no one would want a war. Do we want a war? We have the superior weapons of war. Do we want to play with war?
When China was unable to detonate its atom bomb, its top scientist who could detonate the bomb did not want to get involved in making a weapon of mass destruction. He finally was persuaded by the missile and rocketry expert Qian Xue Sen to work on the bomb. The reasoning, to have the atom bomb and not using it was not the same as not having the bomb. The moral of the story was to have the atom to avoid being attacked, not to attack another country or go to war with the bomb.
Singapore may be armed to the teeth, but it must not to be eager to go to war. The powerful weapons we possessed are there to avoid wars. All the cocky and arrogant talks were provocative, unnecessary and unhelpful. Our potential enemies know what we have and what we are capable of. That is good enough to keep them from adventurism, to want to have a war with us. Our capability and military strength must not be excuse for adventurism and foolish thoughts and talks.
Our superior strategy is to be in a position of strength to avoid war. We have been very successful in this and as long as war is prevented. Our strategy depends not only on our superior weapons but on a rational, thinking and wise enemy. When the enemy becomes irrational, emotional and agitated, we have lost. When war starts, we have failed. The death toll and destruction of a war would not be 3 dead and 33 wounded. It would be thousands of times more serious and destructive. Our first strike strategy is only a strategy and is not our special privilege. Do you ever think that our enemy can also have a first strike strategy and when they hit first we are as good as gone?
Don’t always think that we are a few steps ahead of our enemies, that only we can think and plan. Our enemies also can think and can plan and know our every move. Arrogance and unestimating the enemies are the first step to defeat.
Stop the drumming please. And stop walking around and crowing like a silly cock.
Kopi level - Green
2/16/2014
The golden year era is history
In the 80s and 90s, the mood of the citizens was jubilant and full of
optimism. Everyone was thinking of upgrading from smaller flats to
bigger flats, to private properties. And you don’t need a degree or even
a diploma to do that. The homes for the average workers were 4 rm and 5
rm flats and many could afford better.
Playing golf and buying golf and country club memberships were a happy past time. It was a time to play and to have fun, for very ordinary Sinkies. Today it is no longer the same. The courses are dirt cheap but not many takers. With the govt taking back some of the land and a new pegged to market price of the land, many would not be able to be golf club members anymore.
The flat owners are buying smaller and smaller public flats despite their tertiary qualifications. And now they are begging the govt to bring down the prices by shortening the lease from 99 years to 60 years, and to 30 years. Lowering of expectations. This is an island of rich millionaires begging for handouts and assistance from the govt.
The oldies that have bought landed properties are in the process to downgrade, to sell and cash out to have some cash for their retirement. Not bad for these oldies. Would this be the same for the young of today when they turned oldies?
During the golden years the young had no problem getting a good job. The PMEs were gainfully employed and with very good income. Now both groups are not so fortunate. The PMEs are badly hurt and many are unemployed, unemployable or jobless. So do the young.
Car ownership is now a fleeting dream to many average Sinkies when it was a norm to own a car that cost $10k or $20k and no ERP to pay. Now the new normal is to take public transport and some returning to leg power not out of choice but necessity when affordability is a real problem.
And there was a time when everyone wanted to be admitted to A class wards in govt hospitals. Today they wanted to go to C or B2 wards for fear of being bankrupt by the medical bills. And the hospitals have to come out with a mean thing to prevent the patients from downgrading to lower class wards. They would like patients to stay at more expensive wards. Strangely today hospitals are trying their best to discharge patients as early as they could to make way for new patients. Must be business so good that they cannot cope.
Bye bye golden years. When shall we meet again? Oh, don’t be mistaken, the golden years are still here, for the foreigners and the super rich. To many Sinkies it is all about down grading and lowering expectations. Some are having their last fling by selling their once proud homes. And many of the young who would be inheriting a little fortune or good property from their parents would not be able to repeat what their parents had done and would also be going through their last lap of luxury before downgrading like some of the oldies.
Playing golf and buying golf and country club memberships were a happy past time. It was a time to play and to have fun, for very ordinary Sinkies. Today it is no longer the same. The courses are dirt cheap but not many takers. With the govt taking back some of the land and a new pegged to market price of the land, many would not be able to be golf club members anymore.
The flat owners are buying smaller and smaller public flats despite their tertiary qualifications. And now they are begging the govt to bring down the prices by shortening the lease from 99 years to 60 years, and to 30 years. Lowering of expectations. This is an island of rich millionaires begging for handouts and assistance from the govt.
The oldies that have bought landed properties are in the process to downgrade, to sell and cash out to have some cash for their retirement. Not bad for these oldies. Would this be the same for the young of today when they turned oldies?
During the golden years the young had no problem getting a good job. The PMEs were gainfully employed and with very good income. Now both groups are not so fortunate. The PMEs are badly hurt and many are unemployed, unemployable or jobless. So do the young.
Car ownership is now a fleeting dream to many average Sinkies when it was a norm to own a car that cost $10k or $20k and no ERP to pay. Now the new normal is to take public transport and some returning to leg power not out of choice but necessity when affordability is a real problem.
And there was a time when everyone wanted to be admitted to A class wards in govt hospitals. Today they wanted to go to C or B2 wards for fear of being bankrupt by the medical bills. And the hospitals have to come out with a mean thing to prevent the patients from downgrading to lower class wards. They would like patients to stay at more expensive wards. Strangely today hospitals are trying their best to discharge patients as early as they could to make way for new patients. Must be business so good that they cannot cope.
Bye bye golden years. When shall we meet again? Oh, don’t be mistaken, the golden years are still here, for the foreigners and the super rich. To many Sinkies it is all about down grading and lowering expectations. Some are having their last fling by selling their once proud homes. And many of the young who would be inheriting a little fortune or good property from their parents would not be able to repeat what their parents had done and would also be going through their last lap of luxury before downgrading like some of the oldies.
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