30-04-2008: Civil service retirement age to be raised to 58
by Surin Murugiah
PETALING JAYA: The government is set to raise the retirement age for civil servants to 58 years from the present 56 in response to a proposal by the Congress of Unions of Employees in the Public and Civil Services (Cuepacs), sources familiar with the matter said.
The decision to raise the retirement age had already been finalised by the government and an announcement would be made very soon, a source told The Edge Financial Daily.
Cuepacs president Omar Osman, however, said the union was unaware of any such decision and had not heard anything from the government since its last meeting earlier this month.
“Of course, we would welcome such a decision to raise the retirement age for civil servants. We hope it would be announced on May 1 or during the national-level Labour Day celebrations on May 3,” he told The Edge Financial Daily in a telephone interview.
He said the national-level celebrations were being organised by the human resources ministry, adding that Cuepacs and the Public Services Department would be jointly holding another event on May 10 in Putrajaya.
Earlier this month, Cuepacs said the government had agreed to consider several of its requests, including raising the retirement age limit to 60, scrapping the efficiency level assessment test, reinstatement of critical and housing allowance for the support group and pension payments to be based on actual years of service.
Cuepacs had also asked for an honorarium payment of RM2,000 for each government employee in lieu of non-payment of bonus last year, but this was rejected by the government.
Malaysia is the only country in Southeast Asia, apart from Brunei, where the retirement age is 56. In neighbouring Singapore, the retirement age is 62.
RAM Holdings Bhd chief economist Dr Yeah Kim Leng said there was a need to extend the retirement age in Malaysia to be in line with international standards and demographic trends.
“Life span has increased now with modern healthcare. The increase in the retirement age could also reduce the need to recruit new workers in certain sectors which are over-employed,” he said when asked to comment on the government’s decision.
Nonetheless, he said those who wanted to retire voluntarily must be allowed to do so.
He said a decision to increase the retirement age would particularly benefit services like local authorities, the police force and medical care that now faced acute shortage of experienced personnel.
Yeah said for the sectors where there was a shortage of skilled and experienced workers, this would be an opportune time to increase productivity and for the older workers to share their wealth of knowledge.
“But there has to be a balance in terms of retaining skilled or experienced workforce versus the increase in expenditure outlay. As long as productivity of the worker is maintained, raising the age and the related expenditure would be justified,” he said.
Yeah said several other factors were also crucial in extending the retirement age, particularly with regards to workers whose productivity was suspect.
“There must be proper evaluation to weed out the deadwood. Also, extending the retirement age means that those in line for promotion might have to wait longer,” he said.
Yeah said a decision by the government to raise the retirement age limit for the civil service would have no bearing on the private sector as each dealt with different skill sets.
Wednesday, April 30, 2008
Govt should rethink KL-S’pore fast train?
I'm still hold my standing. No way government is going to approve the project in near 3 years time. No way, and why?
Firstly, China's budget deficit is significantly lower than Malaysia in percentage wise. In terms of tax revenues/GDP, China is definitely a few order magnitude stronger than Malaysia. Therefore the capital/resources available at China government disposal obviously afford for more large projects.
Secondly, if everyone wish is granted without prioritization, government is going to go broke or the expenditures will be repaid by our future generations, a.k.a. generational effects.
Thirdly, energy efficiency is a big concern, yes, but not to the extent that inflation brings. Current oil rushes, imho, are just temporary and once the fever over, we shall see a back-fire effect of spending too much money on so called energy efficiency mega projects. I'm not totally against efforts to cut down global warming effects, but sometimes the benefits those projects promise outweigh by the opportunity cost of spending it to improve poverty situation.
The people in economy planning unit are not stupid, as as a matter of fact they might be the top of the cream in the country. Balancing economy cycle is daunting task and why we want to risk a project that might fail in favour of those that guarantee higher rate of sucess?
Just my cents, no offense.
Firstly, China's budget deficit is significantly lower than Malaysia in percentage wise. In terms of tax revenues/GDP, China is definitely a few order magnitude stronger than Malaysia. Therefore the capital/resources available at China government disposal obviously afford for more large projects.
Secondly, if everyone wish is granted without prioritization, government is going to go broke or the expenditures will be repaid by our future generations, a.k.a. generational effects.
Thirdly, energy efficiency is a big concern, yes, but not to the extent that inflation brings. Current oil rushes, imho, are just temporary and once the fever over, we shall see a back-fire effect of spending too much money on so called energy efficiency mega projects. I'm not totally against efforts to cut down global warming effects, but sometimes the benefits those projects promise outweigh by the opportunity cost of spending it to improve poverty situation.
The people in economy planning unit are not stupid, as as a matter of fact they might be the top of the cream in the country. Balancing economy cycle is daunting task and why we want to risk a project that might fail in favour of those that guarantee higher rate of sucess?
Just my cents, no offense.
Govt should rethink KL-S’pore fast train
WHILE China managed to upgrade the existing railway train system to about 200km/hr for interlink cities like Shanghai to Zhejiang, Suzhou, our Government rejects the proposal to have a KL-Singapore high-speed train.
I’m a Johorian working in the Klang Valley. Travelling to Kota Baru or Kuala Terengganu takes six to eight hours. How I wish there were a high-speed train service to travel there in three to four hours.
The long hours of travel just make me opt for a vacation in Bali, Phuket, instead of Kota Baru or Kuala Terengganu.
Moreover, energy efficiency is a big concern for us in future, high-speed trains surely saves us the cost and time.
In addition, the economy will receive a boost with the high-speed rail connection and tourism will be greatly enhanced because more tourists will be on the go domestically.
I hope alternative improvements can be done to the existing railway system in Malaysia in the mean time.
Competition necessitates improvement. If KTM can’t perform, why we should let it monopolise and delay our momentum?
C.K. LAU,
Petaling Jaya, Selangor.
Capital Budgeting
Someone in a corporation who is mandated to make financial decisions need to engage in capital budgeting process. Obviously, capital budgeting process requires you as the financial controller or corporate planner to determine which capital projects to be undertaken. So what is capital budget? In layman term, these are projects which will affect the company financially in the long run, or more specifically they will impact your company future earnings and the forecasted cash flows usually spread over one year.
From a shareowner point of view, capital projects are aim to increase our wealth. Capital projects that cost money and doesn't bring value to shareowners are merely inreasing the company size. Imagine a person that eat alot (capital) and growing fat (company size) but doesn't really bring any significant good to the person (value).
Put it simple, capital budgeting process have 4 steps:
1. Idea generation
2. Analyzing project proposals
3. Create the enterprise wide capital budget
4. Monitor investments and analyze target-actual variations
Argh.. getting sleepy and too lazy to type. Continue next time when I got mood on this topic :p
From a shareowner point of view, capital projects are aim to increase our wealth. Capital projects that cost money and doesn't bring value to shareowners are merely inreasing the company size. Imagine a person that eat alot (capital) and growing fat (company size) but doesn't really bring any significant good to the person (value).
Put it simple, capital budgeting process have 4 steps:
1. Idea generation
2. Analyzing project proposals
3. Create the enterprise wide capital budget
4. Monitor investments and analyze target-actual variations
Argh.. getting sleepy and too lazy to type. Continue next time when I got mood on this topic :p
Sunday, April 27, 2008
House: Maintenance Report for Q108
Summary of structural design flaws fixed:
Summary of items replaced due to malfunctions, inappropriateness or improvements:
Summary home improvements:
Summary of electrity, water, telecommunications and other utilities.
Risk provisions, mitigations and preventions.
The design flaw was apparent especially in this quarter because of excessive rain volumes in the region. The top of 1st floor's living area is directly connected to the roof with transparent roofing and open air design. The open air decision causes the rain drops to drip in when the wind is strong. A consequence from the flaw is
I was unable to place any furnitures or appliances at that area. The solution I adopted was to hire a vendor specialized in construction and engineering to seal the roofing with metal plates and silicon adhesive glues. So far, no sign of water found in the area.
Some cracks are visible on the wall/paint due to natural movement of the building. They are either repainted or covered by decorative items.
Rough expenses: RM400.00
Summary of items replaced due to malfunctions, inappropriateness or improvements:
3 units of 18 watts PLC lamp bulbs and 1 unit of PLC Ballast.
1 unit of rounded fluorescent lamp.
1 unit of standard fluorescent lamp and 1 unit of choke.
1 unit of water measurement meter replaced by Syabas for free.
Rough expenses: RM85.00
Summary home improvements:
1 unit of WD40.
1 unit of food processor.
1 unit of shoe rack with drawer.
1 unit of quilt cover set
1 unit of cool water storage tank
Rough expenses: RM1200.00
Summary of electrity, water, telecommunications and other utilities.
In Q1, there was no major electrity discruption.
However there were 1 or 2 (can't really remember) water shortages. Fortunately for the period of the shortages, the 2 in-house large water tanks supplied the water for our usages.
Streamyx as usual, being discrupted a few times (5 times?) during the period because of "maintenance/improvement" issues as reported by TMNet.
Risk provisions, mitigations and preventions.
I found some signs of termites near the storage room and dining area. The infestation is seem to be minimal at the time of discovery. Termites repellents were sprayed along the floor edges and so far no sign of termites appearing.
Due to seriousness of the issue, constant inspection is conducted and unnecessary corrugated paper boxes or unwanted paper-based materials were disposed outside the regime of the home. Plan B will be to hire specialized termites exterminators for our service if such incident reappear in the future.
Birds is another natural issue. On regular basis, some birds stop at the kitchen's window grilles and lay down their dungs. Beside aesthetic impedition, I'm worry about the hygienic risks those wastes carried. The solution is to cover the window grilles with pvc net so that birds can't hang around the metal.
Rough expenses: RM150.00
Apple's Big Success--It's All About Sociology, Not Technology. Does Google Get That?
Apple's Big Success--It's All About Sociology, Not Technology. Does Google Get That?
Posted by: Bruce Nussbaum on April 24
Apple had a blowout first quarter in the face of a declining economy, proving, once again, that innovation drives revenue and profit growth. But what exactly does that mean in the case of Apple? A.G. Lafley, P&G’s CEO, told me over lunch recently that “innovation is a social system—it involves culture, organization and leadership.”
Apple has that now. In its early years, Apple succeeded because of
brilliant user-centric design and user-friendly technology. Xerox Parc was the origin of practically all of Apple's early high-tech innovations, and Apple applied these advances in ways that connected with consumers.
Apple is innovating on a wider and deeper scale these days. It is using sociology rather than technology to propel its sales. By that I mean the iPhone, iPod, Macs and stores are all at the heart of a consumer culture that defines itself in terms of connection and sharing. Apple is providing the tools, the methods and even the cool spaces (stores of all things!) to enable and empower this sharing culture. It is identifying with its customers who identify with it. Both Apple and its customers are creating a singular, distinctive identity together.
Apple is still learning this. The successful US model for the iPhone isn't working in Europe, where people want cheaper phones and carriers want to keep more of their revenues and not share as much with Apple. In India and elsewhere, people group text and the iPhone initially couldn't do that. In a global marketplace, being in customer cultures means being in many cultures. That's very hard, especially for such an "American" company as Apple.
Nike's slogan "Running Together" captures the new phenomenon of co-creating identity together. Every company now needs a "Together" concept and culture that unites it with its consumer base.
Companies that still rely on technology and not sociology to define their businesses and their identities will fail going forward. Does Google get that?
Posted by: Bruce Nussbaum on April 24
Apple had a blowout first quarter in the face of a declining economy, proving, once again, that innovation drives revenue and profit growth. But what exactly does that mean in the case of Apple? A.G. Lafley, P&G’s CEO, told me over lunch recently that “innovation is a social system—it involves culture, organization and leadership.”
Apple has that now. In its early years, Apple succeeded because of
brilliant user-centric design and user-friendly technology. Xerox Parc was the origin of practically all of Apple's early high-tech innovations, and Apple applied these advances in ways that connected with consumers.
Apple is innovating on a wider and deeper scale these days. It is using sociology rather than technology to propel its sales. By that I mean the iPhone, iPod, Macs and stores are all at the heart of a consumer culture that defines itself in terms of connection and sharing. Apple is providing the tools, the methods and even the cool spaces (stores of all things!) to enable and empower this sharing culture. It is identifying with its customers who identify with it. Both Apple and its customers are creating a singular, distinctive identity together.
Apple is still learning this. The successful US model for the iPhone isn't working in Europe, where people want cheaper phones and carriers want to keep more of their revenues and not share as much with Apple. In India and elsewhere, people group text and the iPhone initially couldn't do that. In a global marketplace, being in customer cultures means being in many cultures. That's very hard, especially for such an "American" company as Apple.
Nike's slogan "Running Together" captures the new phenomenon of co-creating identity together. Every company now needs a "Together" concept and culture that unites it with its consumer base.
Companies that still rely on technology and not sociology to define their businesses and their identities will fail going forward. Does Google get that?
Saturday, April 26, 2008
Monetary Base, Monetary Multiplier and Money Supply
The following is derived from my understanding of the matters, any damages caused by the uses of it is none of my business, :p
According to M1 and M2 measures of money supply in the State,
M1 = Amount in Currency, Travellers' checks and Checking account deposits (non governmental)
M2 = Amount inclusive of M1, Time deposit, Savings Deposits and Money Money mutual funds.
Many of the banking system in the world, including the one used in U.S is basically a fractional reserve banking system. It means the central bank will decides as part of the monetary policy the reserve ratio of the bank deposits to be retained with the central bank for the purposes of liquidation/withdrawal by depositors.
This reserve ratio is one of the crucial instruments at central bank disposal to influence market determined interest rates, to increase/decrease money supply in the market and effectively controlling economy expansion or recession.
For every dollar you deposited in your preferred bank, the bank might pools the money and loans it out, after withholding the portion of the money as required by the bank reserve ratio. Then, the borrower who granted the loan might uses the loaned money to settle his/her debts or uses it to buy stuffs. One way or another, most probably some portion of the money will get bank to banks as deposits. The bank then can repeat the cycle again and again, until there is no more excess reserves.
The monetary base includes currency notes, coins, and reserve deposits at the central bank.
The change effect of one unit of monetary base is multipled by a number called the monetary multiplier because of the money circulation depicted above.
Basically, the monetary multiplier is dependent on the bank reserve ratio and the currency ratio. Currency ratio is the portion of money borrowers hold in cash without re-deposited it back to the system.
And by that
According to M1 and M2 measures of money supply in the State,
M1 = Amount in Currency, Travellers' checks and Checking account deposits (non governmental)
M2 = Amount inclusive of M1, Time deposit, Savings Deposits and Money Money mutual funds.
Many of the banking system in the world, including the one used in U.S is basically a fractional reserve banking system. It means the central bank will decides as part of the monetary policy the reserve ratio of the bank deposits to be retained with the central bank for the purposes of liquidation/withdrawal by depositors.
This reserve ratio is one of the crucial instruments at central bank disposal to influence market determined interest rates, to increase/decrease money supply in the market and effectively controlling economy expansion or recession.
For every dollar you deposited in your preferred bank, the bank might pools the money and loans it out, after withholding the portion of the money as required by the bank reserve ratio. Then, the borrower who granted the loan might uses the loaned money to settle his/her debts or uses it to buy stuffs. One way or another, most probably some portion of the money will get bank to banks as deposits. The bank then can repeat the cycle again and again, until there is no more excess reserves.
The monetary base includes currency notes, coins, and reserve deposits at the central bank.
The change effect of one unit of monetary base is multipled by a number called the monetary multiplier because of the money circulation depicted above.
Basically, the monetary multiplier is dependent on the bank reserve ratio and the currency ratio. Currency ratio is the portion of money borrowers hold in cash without re-deposited it back to the system.
Money Multiplier = (1+c)/(r+c)
Where c is the currency ratio and r is the reserve ratio
And by that
Change in quantity of money = Change in monetary base x Money Multiplier
Nobel Winner Stiglitz: US Facing Long Recession
CNBC
Nobel Winner Stiglitz: US Facing Long Recession
Friday April 25, 12:16 pm ET
The U.S. economy is already in recession -- and may echo the 1930s, Nobel Laureate Joseph Stiglitz said Friday.
"The big question is: how will the government respond?" said Stiglitz, in an interview with CNBC. Stiglitz, a Columbia University professor and 2001 winner of the Nobel prize, detailed his bleak outlook for the American economy.
"This is going to be one of the worst economic downturns since the Great Depression," said Stiglitz.
He explained that main cause of the current situation is historically unique -- and thus is befuddling those charged with creating solutions.
Other downturns were primarily caused by excesses in inventories or inflation; but this slowdown is due to the condition of "badly impaired" banks and financial entities, which are unwilling and/or unable to lend capital -- stymieing the very borrowers who usually drive the country back to vitality, Stiglitz said. And the Federal Reserve may have used up its ammunition -- and the faith investors and planners have put in it.
"[The Fed] will be between a rock and hard place. And we're not over-worrying about credit. But [simultaneously], we need to start worrying about the real sector," he said.
And if inflation wasn't the prime recession cause, it's still a menace. The professor points to the two-pronged danger of high oil prices joined by climbing food prices, harming businesses and scaring consumers.
"Oil is particularly bad," as it means that more U.S. dollars "will be going abroad," he said.
The housing downturn is an even worse economic factor than casual observers realized, Stiglitz said. He explained that during the real estate boom, Americans were able to withdraw billions of dollars from their home equity.
"[But] with housing prices coming down, it's going to be difficult to do that anymore," he said -- drying up a spending source. And within that problem, still another complication: people typically spent the money they drew off their home equity on consumption, rather than investment -- garnering no return on the spending.
"The savings rate as we go into the recession is zero. Which means [savings] will go up, " he said -- decreasing consumer spending and weakening retail further.
What about the government stimulus package?
"The Bush Administration's response is too little, too late -- and very badly designed," he declared. The amount ostensibly being infused into the economy by tax rebate checks will be a "drop in the bucket" compared to the money being held back and siphoned out by the factors he mentioned.
"If you really wanted to stimulate the economy, increase unemployment insurance," he suggested.
"The president is telling people to go out and get jobs -- and there are no jobs for them," he said.
Nobel Winner Stiglitz: US Facing Long Recession
Friday April 25, 12:16 pm ET
The U.S. economy is already in recession -- and may echo the 1930s, Nobel Laureate Joseph Stiglitz said Friday.
"The big question is: how will the government respond?" said Stiglitz, in an interview with CNBC. Stiglitz, a Columbia University professor and 2001 winner of the Nobel prize, detailed his bleak outlook for the American economy.
"This is going to be one of the worst economic downturns since the Great Depression," said Stiglitz.
He explained that main cause of the current situation is historically unique -- and thus is befuddling those charged with creating solutions.
Other downturns were primarily caused by excesses in inventories or inflation; but this slowdown is due to the condition of "badly impaired" banks and financial entities, which are unwilling and/or unable to lend capital -- stymieing the very borrowers who usually drive the country back to vitality, Stiglitz said. And the Federal Reserve may have used up its ammunition -- and the faith investors and planners have put in it.
"[The Fed] will be between a rock and hard place. And we're not over-worrying about credit. But [simultaneously], we need to start worrying about the real sector," he said.
And if inflation wasn't the prime recession cause, it's still a menace. The professor points to the two-pronged danger of high oil prices joined by climbing food prices, harming businesses and scaring consumers.
"Oil is particularly bad," as it means that more U.S. dollars "will be going abroad," he said.
The housing downturn is an even worse economic factor than casual observers realized, Stiglitz said. He explained that during the real estate boom, Americans were able to withdraw billions of dollars from their home equity.
"[But] with housing prices coming down, it's going to be difficult to do that anymore," he said -- drying up a spending source. And within that problem, still another complication: people typically spent the money they drew off their home equity on consumption, rather than investment -- garnering no return on the spending.
"The savings rate as we go into the recession is zero. Which means [savings] will go up, " he said -- decreasing consumer spending and weakening retail further.
What about the government stimulus package?
"The Bush Administration's response is too little, too late -- and very badly designed," he declared. The amount ostensibly being infused into the economy by tax rebate checks will be a "drop in the bucket" compared to the money being held back and siphoned out by the factors he mentioned.
"If you really wanted to stimulate the economy, increase unemployment insurance," he suggested.
"The president is telling people to go out and get jobs -- and there are no jobs for them," he said.
Tan Sri Yeoh Tiong Lay among recipients of exemplary Hokkiens award
I'm a Hokkien too. Cheers :)
Tan Sri Yeoh Tiong Lay among recipients of exemplary Hokkiens award
Tan Sri Yeoh Tiong Lay
The Star Online, April 25, 2008
FORMER Penang chief minister Tun Lim Chong Eu and ex-MCA president Tun Dr Ling Liong Sik are among 10 recipients of the Exemplary Malaysians Hokkien Award, reported Nanyang Siang Pau.
The others are YTL Corp patriarch Tan Sri Yeoh Tiong Lay, palm oil king Tan Sri Lee Shin Cheng, Tan Sri Tong Yoke Kim, Sarawak-based timber tycoon Tan Sri Tiong Hiew King, Tan Sri Quek Leng Chan of Hong Leong Group, philanthropist Tan Sri Kuek Ho Yao, property tycoon Tan Sri Low Keng Seng and Chinese educationist Datuk Sim Mow Yu.
The award was established in conjunction with the 50th anniversary of The Federation of Hokkien Association of Malaysia.
Organising chairman Tan Kim Leong said another 40 people from the Hokkien clan would also be presented the Outstanding Malaysians Hokkien Award.
However, he said the 40 names would be announced at a grand award-giving ceremony at Palm Garden Hotel, IOI Resort in Putrajaya on Sunday.
He said the recipients were selected based on their excellent performance in their respective fields as well as their great contributions to the society and country.
He said it took them almost a year to come out with the list of recipients.
Tan Sri Yeoh Tiong Lay among recipients of exemplary Hokkiens award
Tan Sri Yeoh Tiong Lay
The Star Online, April 25, 2008
FORMER Penang chief minister Tun Lim Chong Eu and ex-MCA president Tun Dr Ling Liong Sik are among 10 recipients of the Exemplary Malaysians Hokkien Award, reported Nanyang Siang Pau.
The others are YTL Corp patriarch Tan Sri Yeoh Tiong Lay, palm oil king Tan Sri Lee Shin Cheng, Tan Sri Tong Yoke Kim, Sarawak-based timber tycoon Tan Sri Tiong Hiew King, Tan Sri Quek Leng Chan of Hong Leong Group, philanthropist Tan Sri Kuek Ho Yao, property tycoon Tan Sri Low Keng Seng and Chinese educationist Datuk Sim Mow Yu.
The award was established in conjunction with the 50th anniversary of The Federation of Hokkien Association of Malaysia.
Organising chairman Tan Kim Leong said another 40 people from the Hokkien clan would also be presented the Outstanding Malaysians Hokkien Award.
However, he said the 40 names would be announced at a grand award-giving ceremony at Palm Garden Hotel, IOI Resort in Putrajaya on Sunday.
He said the recipients were selected based on their excellent performance in their respective fields as well as their great contributions to the society and country.
He said it took them almost a year to come out with the list of recipients.
Friday, April 25, 2008
Call of the Red Seas
Call of the Red Seas
Modest beginnings
Wealth Magazine, April 24, 2008
Like many Southeast Asian conglomerates, YTL is the product of several generations of sheer industriousness and a do-or-die sense of urgency.
Tan Sri Dato' Francis Yeoh's late grandfather, Yeoh Cheng Liam, left Fujian province in China in 1920 with not much more than a few dollars and a bag of clothes. He landed in what was then known as Malaya and found work in a timber shop. He saved up and started a timber business.
His son Yeoh Tiong Lay began working at age 13 to help pay for his siblings' education. He eventually started a construction company called Syarikat Pembenaan Yeoh Tiong Lay (Yeoh Tiong Lay Building Company) in 1955. It later became YTL, his initials.
It was not uncommon for him to take his seven children to the construction sites, and Tan Sri Francis can still recall the smell of cement.
The company's first construction projects were garrisons, army housing, hospitals and low-cost housing in Malaysia. When the energy crisis of the 1970s struck Malaysia, the business teetered at the brink of collapse as oil prices spiked about 20-fold within a brief period. The company's margins were too tiny to absorb the surge in costs.
The family's relatives and staff pawned their jewellery to keep the company afloat. For Tan Sri Francis, it was an early lesson that loyalty and staff are invaluable assets.
He was 16 at that time and was already supervising construction sites during weekends and holidays. Being the eldest of seven children, he offered to drop out of school, where he was the head boy, to help his father. The offer was sternly rejected.
The patriarch's reason presaged YTL's financial innovations in the future: Without formal training in engineering, he could not foresee the need for fluctuation clauses and other risk management techniques, he explained. Hence, the future of the company depended on Tan Sri Francis completing his education and receiving a degree in engineering.
The punctilious young man dutifully went to Kingston University in the UK and earned a degree in civil engineering. Upon his return to Malaysia in 1978, aged 24, his father appointed him Managing Director.
Today, Tan Sri Dato’ Seri Dr Yeoh Tiong Lay remains Executive Chairman and is said to have a great deal of influence over the group's direction, although his son remains the public face ofYTL. Senior executives who have worked with the group say the patriarch insists on prudence, which explains YTL's conservative approach in all deals. It may have shielded the group from the wreck of the 1997 Asian crisis, when many Asian stars fell because they had significant short-term US-dollar borrowings to finance long-term debt.
YTL Cement
Big Leagues
A year after Tan Sri Francis joined YTL as a degree-holding engineer, his father presented him with a symbol of success: A steel Rolex watch. “A Chinese businessman must have a Rolex,” Tan Sri Francis remarks with a laugh. The next year, it was a gold Rolex.
Thus far, YTL's trajectory is common to many entrepreneurial families in the region. The group could have remained a successful but indistinguishable Chinese family business, but Tan Sri Francis was not one to be content wearing construction boots and a gold Rolex for the rest of his life.
In everything he did, he sought to make a difference. His would be a life of collecting Patek Philippes, Cartier Tanks and Richard Milles, consorting with the likes of Jack Welch and Bill Clinton, and building a diversified business that rewards shareholders consistently.
YTL's entryway into the big leagues came in 1992, when Malaysia suffered a major blackout. It became clear that the national power provider, Tenaga Nasional, could not meet the demands of an economically growing country. The market was opened up to the private sector.
YTL got the country's first independent power producer (IPP) licence in 1993 and was tasked to build and operate two gas fired power plants. They were completed seven months ahead of schedule. But the IPP licence didn't come easily. It was won on the fact that YTL had previously completed several state projects, including Malaysia's first nucleus hospital, months before deadline.
When negotiating the IPP licence, YTL requested and received a deal that critics remember to this day for its audacity: Tenaga Nasional will buy 72% of YTL Power's output at S$0.07per kilowatt hour (kwh) (RMO.152 kwh) for 21 years - even if the national utility didn't need that much capacity. For YTL, it was a hedge against demand risk and a guaranteed income of nearly $500 million a year until September 2015. The IPPs that came later got far less lucrative deals.
In those days, citizens of developing countries typically paid more for electricity than people in developed nations because infrastructure financing in Third World regions like Malaysia and Indonesia came at a premium. Consumers bore the higher financing costs.
Until now, Tan Sri Francis gets incensed at the unfairness of it all. "Why should poorer nations have to pay more? It should be the other way around!" he exclaims.
Indeed, when YTL sought financing for the power plants, the major international banks demanded a premium for the political and other risks that Malaysia and the project were perceived to have. The loans would also be in US dollars, which presented exchange-rate risk for assets with revenues solely in ringgit. YTL refused the unfriendly terms.
To deliver YTL's vision - world-class services at Third World prices -Tan Sri Francis proposed a groundbreaking scheme: YTL would issue 10-year bonds in ringgit and the issue would be subscribed by Malaysia's top institutional investor, the Employee Provident Fund (EPF), a pension fund.
The government bought the idea and YTL issued $660 million {RM1.5 billion) worth of fixed-rate 10% bonds in 1994. It angered sections of the public, but it provided sufficient stability for the first IPP to operate and create a new industry.
Most importantly, it presented a viable financing model to the developing world.
This debt-financing approach became the pin-up model for many other countries wanting to privatise their utilities sectors. YTL was mentioned in every major central bank report, academic study, infrastructure conference and the like.
The Malaysian IPPs that won licences later also adopted a similar financing model. The first five raised more than $4.billion entirely from the domestic market, according to Euromoney and it defended the IPPs from the US dollar's precipitous rise against the ringgit during the Asian crisis.
Over the decades, YTL continued to innovate and surprise (critics would say annoy). In January 2007, YTL Corp raised $141 million (US$101 million) via Malaysia's first overnight sale of treasury shares. In Malaysia, treasury shares normally cannot be sold in overnight placements. But divesting 3.5% of the outstanding share capital on the market would have pressured the stock price downward.
Red Seas
But YTL doesn't win every time. In 1996, the group was given the opportunity to buy 80% of Hong Kong-base Consolidated Electric Power Asia. It would have turned YTL into Asia's largest IPP.
Tan Sri Francis managed once again, in astonishingly bold fashion to arrange for government financing. But he was outbid by a US firm. A banker who advised YTL on the deal said YTL would probably have won if it was listed and had access to the capital markets.
A year later, YTL Power launched an initial public offer, and has a current market cap of $6 billion.
YTL Corp The first to go public, in 1985 has a current market value of $5.6 billion. YTL Cement was listed in 1993 (current market cap $1.1 billion) and YTL e-Solutions a technology company, went public in 2002 (current market cap $327 million).
Starhill Real Estate Investment Trust -which contains Starhill Gallery, Lot 10, JW Marriott and The Ritz-Carlton Residenceas all in Kuala Lumpur –was listed in 2005 (current market cap $484 million). The group's total market cap is more than $13.2 billion, even during a time when the equity markets are battered out of their shells.
The group's compounded annual growth rate (CAGR) has been 55% since 1985 and dividends from all the listed units have been paid consistently each year. Tan Sri Francis often compares his group with Warren Buffett's Berkshire Hathaway, in the sense that both companies have delivered unwavering growth over long periods.
In the future, a CAGR of 20% until the year 2020 is realistic considering a relatively substantial base has been built, Tan Sri Francis says. After some thought, he declares "But we've crossed so many red seas eaten so much manna in the desert and still managed to grow by 55%, so I should say we can still do it:'
His ultimate aim is to build YTL into “a force for good. We want to bring joy to people and hopefully they will say, ‘we wish there were more companies like YTL, more leaders like you, more people who are caring.’ ”
Modest beginnings
Wealth Magazine, April 24, 2008
Like many Southeast Asian conglomerates, YTL is the product of several generations of sheer industriousness and a do-or-die sense of urgency.
Tan Sri Dato' Francis Yeoh's late grandfather, Yeoh Cheng Liam, left Fujian province in China in 1920 with not much more than a few dollars and a bag of clothes. He landed in what was then known as Malaya and found work in a timber shop. He saved up and started a timber business.
His son Yeoh Tiong Lay began working at age 13 to help pay for his siblings' education. He eventually started a construction company called Syarikat Pembenaan Yeoh Tiong Lay (Yeoh Tiong Lay Building Company) in 1955. It later became YTL, his initials.
It was not uncommon for him to take his seven children to the construction sites, and Tan Sri Francis can still recall the smell of cement.
The company's first construction projects were garrisons, army housing, hospitals and low-cost housing in Malaysia. When the energy crisis of the 1970s struck Malaysia, the business teetered at the brink of collapse as oil prices spiked about 20-fold within a brief period. The company's margins were too tiny to absorb the surge in costs.
The family's relatives and staff pawned their jewellery to keep the company afloat. For Tan Sri Francis, it was an early lesson that loyalty and staff are invaluable assets.
He was 16 at that time and was already supervising construction sites during weekends and holidays. Being the eldest of seven children, he offered to drop out of school, where he was the head boy, to help his father. The offer was sternly rejected.
The patriarch's reason presaged YTL's financial innovations in the future: Without formal training in engineering, he could not foresee the need for fluctuation clauses and other risk management techniques, he explained. Hence, the future of the company depended on Tan Sri Francis completing his education and receiving a degree in engineering.
The punctilious young man dutifully went to Kingston University in the UK and earned a degree in civil engineering. Upon his return to Malaysia in 1978, aged 24, his father appointed him Managing Director.
Today, Tan Sri Dato’ Seri Dr Yeoh Tiong Lay remains Executive Chairman and is said to have a great deal of influence over the group's direction, although his son remains the public face ofYTL. Senior executives who have worked with the group say the patriarch insists on prudence, which explains YTL's conservative approach in all deals. It may have shielded the group from the wreck of the 1997 Asian crisis, when many Asian stars fell because they had significant short-term US-dollar borrowings to finance long-term debt.
YTL Cement
Big Leagues
A year after Tan Sri Francis joined YTL as a degree-holding engineer, his father presented him with a symbol of success: A steel Rolex watch. “A Chinese businessman must have a Rolex,” Tan Sri Francis remarks with a laugh. The next year, it was a gold Rolex.
Thus far, YTL's trajectory is common to many entrepreneurial families in the region. The group could have remained a successful but indistinguishable Chinese family business, but Tan Sri Francis was not one to be content wearing construction boots and a gold Rolex for the rest of his life.
In everything he did, he sought to make a difference. His would be a life of collecting Patek Philippes, Cartier Tanks and Richard Milles, consorting with the likes of Jack Welch and Bill Clinton, and building a diversified business that rewards shareholders consistently.
YTL's entryway into the big leagues came in 1992, when Malaysia suffered a major blackout. It became clear that the national power provider, Tenaga Nasional, could not meet the demands of an economically growing country. The market was opened up to the private sector.
YTL got the country's first independent power producer (IPP) licence in 1993 and was tasked to build and operate two gas fired power plants. They were completed seven months ahead of schedule. But the IPP licence didn't come easily. It was won on the fact that YTL had previously completed several state projects, including Malaysia's first nucleus hospital, months before deadline.
When negotiating the IPP licence, YTL requested and received a deal that critics remember to this day for its audacity: Tenaga Nasional will buy 72% of YTL Power's output at S$0.07per kilowatt hour (kwh) (RMO.152 kwh) for 21 years - even if the national utility didn't need that much capacity. For YTL, it was a hedge against demand risk and a guaranteed income of nearly $500 million a year until September 2015. The IPPs that came later got far less lucrative deals.
In those days, citizens of developing countries typically paid more for electricity than people in developed nations because infrastructure financing in Third World regions like Malaysia and Indonesia came at a premium. Consumers bore the higher financing costs.
Until now, Tan Sri Francis gets incensed at the unfairness of it all. "Why should poorer nations have to pay more? It should be the other way around!" he exclaims.
Indeed, when YTL sought financing for the power plants, the major international banks demanded a premium for the political and other risks that Malaysia and the project were perceived to have. The loans would also be in US dollars, which presented exchange-rate risk for assets with revenues solely in ringgit. YTL refused the unfriendly terms.
To deliver YTL's vision - world-class services at Third World prices -Tan Sri Francis proposed a groundbreaking scheme: YTL would issue 10-year bonds in ringgit and the issue would be subscribed by Malaysia's top institutional investor, the Employee Provident Fund (EPF), a pension fund.
The government bought the idea and YTL issued $660 million {RM1.5 billion) worth of fixed-rate 10% bonds in 1994. It angered sections of the public, but it provided sufficient stability for the first IPP to operate and create a new industry.
Most importantly, it presented a viable financing model to the developing world.
This debt-financing approach became the pin-up model for many other countries wanting to privatise their utilities sectors. YTL was mentioned in every major central bank report, academic study, infrastructure conference and the like.
The Malaysian IPPs that won licences later also adopted a similar financing model. The first five raised more than $4.billion entirely from the domestic market, according to Euromoney and it defended the IPPs from the US dollar's precipitous rise against the ringgit during the Asian crisis.
Over the decades, YTL continued to innovate and surprise (critics would say annoy). In January 2007, YTL Corp raised $141 million (US$101 million) via Malaysia's first overnight sale of treasury shares. In Malaysia, treasury shares normally cannot be sold in overnight placements. But divesting 3.5% of the outstanding share capital on the market would have pressured the stock price downward.
Red Seas
But YTL doesn't win every time. In 1996, the group was given the opportunity to buy 80% of Hong Kong-base Consolidated Electric Power Asia. It would have turned YTL into Asia's largest IPP.
Tan Sri Francis managed once again, in astonishingly bold fashion to arrange for government financing. But he was outbid by a US firm. A banker who advised YTL on the deal said YTL would probably have won if it was listed and had access to the capital markets.
A year later, YTL Power launched an initial public offer, and has a current market cap of $6 billion.
YTL Corp The first to go public, in 1985 has a current market value of $5.6 billion. YTL Cement was listed in 1993 (current market cap $1.1 billion) and YTL e-Solutions a technology company, went public in 2002 (current market cap $327 million).
Starhill Real Estate Investment Trust -which contains Starhill Gallery, Lot 10, JW Marriott and The Ritz-Carlton Residenceas all in Kuala Lumpur –was listed in 2005 (current market cap $484 million). The group's total market cap is more than $13.2 billion, even during a time when the equity markets are battered out of their shells.
The group's compounded annual growth rate (CAGR) has been 55% since 1985 and dividends from all the listed units have been paid consistently each year. Tan Sri Francis often compares his group with Warren Buffett's Berkshire Hathaway, in the sense that both companies have delivered unwavering growth over long periods.
In the future, a CAGR of 20% until the year 2020 is realistic considering a relatively substantial base has been built, Tan Sri Francis says. After some thought, he declares "But we've crossed so many red seas eaten so much manna in the desert and still managed to grow by 55%, so I should say we can still do it:'
His ultimate aim is to build YTL into “a force for good. We want to bring joy to people and hopefully they will say, ‘we wish there were more companies like YTL, more leaders like you, more people who are caring.’ ”
Thursday, April 24, 2008
DIGI AGM in 2008
Early Christmas! Santa Claus definitely looks good in yellowish appearance.
No one is more successful than DIGI in making their iconic human like creature into one of the most recognized figure in Malaysia.
My pal, Mr. Alan Wong went to the DIGI AGM 2008 today and shared some of his experiences. The bottomline is it is one AGM worth going, no other reason, just for the free goodies.
Upon entrance, you shall receive a RM50 prepaid call coupon. Then you get to enjoy a free lunch and if you stay till the end of the meeting, you get yourself another RM40 bucks reload coupon.
On top of everything else, you will be given a big, yellowish mug like the one below:
Isn't that cool?
No one is more successful than DIGI in making their iconic human like creature into one of the most recognized figure in Malaysia.
My pal, Mr. Alan Wong went to the DIGI AGM 2008 today and shared some of his experiences. The bottomline is it is one AGM worth going, no other reason, just for the free goodies.
Upon entrance, you shall receive a RM50 prepaid call coupon. Then you get to enjoy a free lunch and if you stay till the end of the meeting, you get yourself another RM40 bucks reload coupon.
On top of everything else, you will be given a big, yellowish mug like the one below:
Isn't that cool?
Wednesday, April 23, 2008
YTL’s Wessex Water wins Queen’s Award for Enterprise
YTL’s Wessex Water wins Queen’s Award for Enterprise
United Kingdom, April 21, 2008
The company first committed to becoming a sustainable operation in 1997 with the publishing of their first sustainability report. Wessex Water then developed its ‘Sustainability Vision’ which sets out its sustainability goals and the mechanisms to achieve them into five key areas; the environment; outside interests (including customers and communities); employees; infrastructure and finances.
Julian Dennis, director of compliance and sustainability, Wessex Water said: “For Wessex Water, sustainability is not an added extra – it applies to all that we do. Our sustainability vision has been embedded thoroughly within our core business and we have received this prestigious award for our ongoing work. We’re delighted to have the commitment to our sustainability work recognised in this way.”
Wessex Water receives the award for continuous achievement in sustainable operations and an impressive commitment to effect positive change, often establishing new benchmarks in the process. Wessex Water’s key areas of success include:
Increasing its generation of renewable energy as part of its carbon management plan
Implementing ‘Assist’; an innovative, lower tariff to help customers on low incomes
Building an operations centre that is amongst the most sustainable offices in the UK
Its work with farmers to help them reduce the use of nitrates and pesticides, improving the environment and protecting water sources
YTL Group Managing Director said, “ I am indeed very proud that our Wessex Water in UK has won this most coveted award. This award is a further inspiration to all in The YTL Group globally, further enhancing our ‘green’ DNA. I am very proud of all of them”
Work with the Ministry of Justice, National Offender Management Service and Probation and Prison service to develop a scheme that trains offenders, prior to release, to fill roles within Wessex Water
An ongoing education programme; providing primary and secondary education packs to aid the teaching of the water cycle and water conservation within the national curriculum. Wessex Water also provides education advisors who visit schools and staff nine education centres in the region
Managing a thorough programme of communications with ‘stakeholders’ – the people who have an interest in the company, including customers, local communities, employees, regulators, investors and interest groups.
Julian Dennis continues: “We are working with the rest of the water industry on projects to deal with the big issues that the sector faces. We’re taking a lead in promoting best practice. Winning a Queen’s Award for Enterprise is testament to this commitment and our achievements so far.”
The Awards were inaugurated in 1966 as The Queen’s Award to Industry but are these days renamed as The Queen’s Awards for Enterprise divided into International Trade, Innovation and Sustainable Development.
United Kingdom, April 21, 2008
The company first committed to becoming a sustainable operation in 1997 with the publishing of their first sustainability report. Wessex Water then developed its ‘Sustainability Vision’ which sets out its sustainability goals and the mechanisms to achieve them into five key areas; the environment; outside interests (including customers and communities); employees; infrastructure and finances.
Julian Dennis, director of compliance and sustainability, Wessex Water said: “For Wessex Water, sustainability is not an added extra – it applies to all that we do. Our sustainability vision has been embedded thoroughly within our core business and we have received this prestigious award for our ongoing work. We’re delighted to have the commitment to our sustainability work recognised in this way.”
Wessex Water receives the award for continuous achievement in sustainable operations and an impressive commitment to effect positive change, often establishing new benchmarks in the process. Wessex Water’s key areas of success include:
Increasing its generation of renewable energy as part of its carbon management plan
Implementing ‘Assist’; an innovative, lower tariff to help customers on low incomes
Building an operations centre that is amongst the most sustainable offices in the UK
Its work with farmers to help them reduce the use of nitrates and pesticides, improving the environment and protecting water sources
YTL Group Managing Director said, “ I am indeed very proud that our Wessex Water in UK has won this most coveted award. This award is a further inspiration to all in The YTL Group globally, further enhancing our ‘green’ DNA. I am very proud of all of them”
Work with the Ministry of Justice, National Offender Management Service and Probation and Prison service to develop a scheme that trains offenders, prior to release, to fill roles within Wessex Water
An ongoing education programme; providing primary and secondary education packs to aid the teaching of the water cycle and water conservation within the national curriculum. Wessex Water also provides education advisors who visit schools and staff nine education centres in the region
Managing a thorough programme of communications with ‘stakeholders’ – the people who have an interest in the company, including customers, local communities, employees, regulators, investors and interest groups.
Julian Dennis continues: “We are working with the rest of the water industry on projects to deal with the big issues that the sector faces. We’re taking a lead in promoting best practice. Winning a Queen’s Award for Enterprise is testament to this commitment and our achievements so far.”
The Awards were inaugurated in 1966 as The Queen’s Award to Industry but are these days renamed as The Queen’s Awards for Enterprise divided into International Trade, Innovation and Sustainable Development.
Tuesday, April 22, 2008
Star fruit can be toxic for kidney patients
Star fruit can be toxic for kidney patients
KUALA LUMPUR: All it takes is one fruit or 100ml of juice and the ordinarily harmless star fruit becomes poison in a matter of hours for kidney patients.
University Malaya Medical Centre (UMMC) consultant nephrologist Prof Dr Tan Si-Yen said this was what happened to Tang Gon Seang, who has been suffering a kidney ailment.
The 66-year-old Malaysian was in Shenzhen visiting his son when he passed out on March 29 after eating star fruits and was rushed to the Shenzhen General Hospital where he fell into a coma.
“Star fruits contain a neurotoxin, which is not present in other fruits, affecting the brain and nerves. In healthy persons, the kidneys filter it out. In kidney patients, it cannot be removed and worsens their condition,” he said.
More than 10 other patients in the hospital suffered the same condition after consuming star fruits. Two of them died.
After discovering the star fruit connection, Tang has been undergoing dialysis.
His brother-in-law Teoh Thian Lye, 55, confirmed that Tang had been on medication for kidney problems for three years.
The family sought the help of MCA Public Complaints and Services Department head Datuk Michael Chong to transfer Tang back to Malaysia as the family could not afford the hospital bill of RM1, 000-RM2, 000 a day in intensive care.
According to Dr Tan, there was little awareness of this relatively new discovery and no local cases yet.
“The public must be alert to reactions to star fruit. Look out for initial symptoms including hiccups, numbness and weakness and neurological symptoms including confusion, agitation and epileptic fits,” he said.
“The risk of death is high and immediate aggressive treatment of daily haemodialysis is necessary,” he added.
Dr Tan said UMMC was prepared to admit Tang, when he was transferred back to Malaysia.
KUALA LUMPUR: All it takes is one fruit or 100ml of juice and the ordinarily harmless star fruit becomes poison in a matter of hours for kidney patients.
University Malaya Medical Centre (UMMC) consultant nephrologist Prof Dr Tan Si-Yen said this was what happened to Tang Gon Seang, who has been suffering a kidney ailment.
The 66-year-old Malaysian was in Shenzhen visiting his son when he passed out on March 29 after eating star fruits and was rushed to the Shenzhen General Hospital where he fell into a coma.
“Star fruits contain a neurotoxin, which is not present in other fruits, affecting the brain and nerves. In healthy persons, the kidneys filter it out. In kidney patients, it cannot be removed and worsens their condition,” he said.
More than 10 other patients in the hospital suffered the same condition after consuming star fruits. Two of them died.
After discovering the star fruit connection, Tang has been undergoing dialysis.
His brother-in-law Teoh Thian Lye, 55, confirmed that Tang had been on medication for kidney problems for three years.
The family sought the help of MCA Public Complaints and Services Department head Datuk Michael Chong to transfer Tang back to Malaysia as the family could not afford the hospital bill of RM1, 000-RM2, 000 a day in intensive care.
According to Dr Tan, there was little awareness of this relatively new discovery and no local cases yet.
“The public must be alert to reactions to star fruit. Look out for initial symptoms including hiccups, numbness and weakness and neurological symptoms including confusion, agitation and epileptic fits,” he said.
“The risk of death is high and immediate aggressive treatment of daily haemodialysis is necessary,” he added.
Dr Tan said UMMC was prepared to admit Tang, when he was transferred back to Malaysia.
KL-S'pore bullet train derailed by high cost
Frankly speaking, no one is surprise by such decision.
It's just too many things on stake if the project is successful. Think about KL-Singapore air route, think about KTM Berhad, think about PLUS Berhad, ..... it's all political!!! Socio-economy factors? My feet.
It's just too many things on stake if the project is successful. Think about KL-Singapore air route, think about KTM Berhad, think about PLUS Berhad, ..... it's all political!!! Socio-economy factors? My feet.
KL-S'pore bullet train derailed by high cost
PETALING JAYA: The proposed Kuala Lumpur-Singapore multi-billion ringgit bullet train project has been put on hold due to the high cost.
Economic Planning Unit director-general Datuk Seri Sulaiman Mahbob confirmed that the Government had shelved the project but refused to elaborate further.
“The Government will not go ahead with the project because the financial model submitted involves a significant cost to be borne by the Government,” he said when contacted.
He declined to reveal how much the Government would have to bear. He also refused to take further questions on the matter of the bullet train.
The RM8bil train, proposed by YTL Corp Bhd in 2006, was capable of travelling at 350kph and cutting the travelling time between the two cities to 90 minutes.
YTL managing director Tan Sri Francis Yeoh had earlier said that it was an environmentally friendly project and would save the Government “tens of billions of ringgit” in fuel subsidies in the long term.
Yeoh was reported to have said that the Government was supportive of the project.
A feasibility study was carried out last year but the Government said it also wanted to carry out a social impact study as the project required land acquisition.
The project was first proposed by YTL to then Prime Minister Tun Dr Mahathir Mohamad in the late 1990s soon after the completion of the high-speed rail link between Kuala Lumpur and the KL International Airport. YTL owns half of the KL-KLIA link.
Dr Mahathir rejected the project because it was not suitable.
Samsung's Chairman to Resign
Samsung's Chairman to Resign
Tuesday, Apr. 22, 2008 By MICHAEL SCHUMAN
Samsung Group Chairman Lee Kun-hee during a news conference at the company's headquarters in Seoul on April 22
In what may prove to be a milestone for corporate reform in South Korea , the country's most powerful businessman on Tuesday resigned from his post as chairman of Samsung Electronics.
Lee Kun Hee, 66, stepped down after being indicted last week on charges of tax evasion and breach of fiduciary trust. Lee's son also resigned from his post at the company. "I have regrets," Lee said in a brief televised address broadcast on national TV. "But I think this is time for me to leave, taking all the mistakes of the past with me." Lee said he would "take full responsibility, both moral and legal."
Under Lee's guidance, Samsung transformed itself from a little-known purveyor of second-rate electronics into a major producer of mobile phones, LCD panels and memory chips with a globally recognized brand name. However, Lee also became a symbol of the difficulties Korea's major corporations have faced in modernizing their management practices. A shadowy figure rarely seen in public, Lee was treated as a demigod by Samsung employees but his actual role in managing the company remained opaque. Through complex networks of cross-shareholdings, Lee, the son of Samsung's founder, played a dominant role in directing the activities of the giant Samsung group of companies, with dozens of affiliates in insurance, securities, heavy industry, chemicals and even hotels. Samsung wields tremendous economic and political influence in South Korea. Its companies account for some 20% of the nation's exports. The charges against Lee are a result of an investigation started after a former Samsung counsel accused the group late last year of operating a slush fund to bribe politicians and bureaucrats. (Lee, however, wasn't charged with bribery.)
Samsung's bewildering management structure and its political influence have been common features of Korea's family-run business conglomerates, called chaebols. Over the past decade, several of the sprawling business empires have come under fire from minority shareholders, foreign investors and government prosecutors for dubious practices, forcing many chaebols to become more transparent. The family that controls the LG group of companies set up a holding company to clarify their shareholdings. Samsung has improved its corporate governance by, for example, allowing more independent directors, but the presence of Lee remained a question mark over its progress. Some of the current charges against Lee relate to allegations that he tried to pass control to his son through dubious financial deals.
According to Seoul analysts, Lee's departure may clear the way for a round of corporate reform within the Samsung conglomerate and possibly throughout corporate South Korea. Without Lee as an overarching force, executives of individual Samsung companies will gain more influence over their own operations. There is a persistent fear among investors that Samsung managers were more loyal to Lee than to shareholders.
Samsung also announced that it will abolish its Strategic Planning Office, which coordinated among the many Samsung affiliates. The company is "moving to the separation of ownership and management," says Thae Khwarg, CEO of fund manager SEI Asset Korea in Seoul. Lee's departure "will make managers more conscious that they have a duty to their shareholders." And with Samsung taking the lead, other chaebols may be forced to follow suit. "Samsung has set many standards," says Yoo Jung Sang, a managing director at Good Morning Shinhan Securities in Seoul. "There should be a spill-over effect to the conglomerates of Korea."
His resignation throws into question the future of the powerful Lee business clan. As a shareholder in Samsung affiliates, Lee holds the loyalty of many Samsung executives, and he is unlikely to vanish from the scene. He was widely expected to attempt to pass control of Samsung to his son, Lee Jae Yong. But that is looking increasingly difficult. The younger Lee resigned from his position as Samsung Electronics' chief customer officer though he will be given a new, yet-to-be-defined role in developing overseas business.
Original Site
Yahoo's first-quarter earnings could sway Microsoft battle
Yahoo's first-quarter earnings could sway Microsoft battle
Monday April 21, 5:29 pm ET
By Michael Liedtke, AP Business Writer
Yahoo's first-quarter earnings could determine next step in takeover battle with Microsoft
SAN FRANCISCO (AP) -- After two years of crumbling profits, Yahoo Inc. can't afford another letdown Tuesday when the Internet icon reports its first-quarter earnings.
Although they only cover a three-month period, the results could determine the Sunnyvale-based company's fate as it grapples with an unsolicited takeover offer from Microsoft Corp.
If Yahoo bounces back to exceed analysts' modest expectations, it could be a springboard to a higher bid from Microsoft or provide more credence to management's argument that the company will be better off remaining independent.
But a disappointing quarter would intensify pressure on Yahoo to accept Microsoft's cash-and stock offer, which was worth about $43 billion, or $29.96 per share, as of Monday's trading.
A lackluster performance might even cause Microsoft to lower its bid, a move that almost certainly would provoke a wave of lawsuits from angry shareholders who thought Yahoo should have accepted the offer when it was first made nearly three months ago.
Microsoft so far has insisted its initial bid is fair and has threatened to initiate an attempt to oust Yahoo's board if the 10 directors don't accept the offer by Saturday. This option, known as a proxy contest, might drag the saga into mid-July.
A solid first quarter would make Microsoft's threat less imposing because more Yahoo shareholders might side with the board's thesis that the company is rebounding and will likely be worth a lot more in the months ahead.
Since 2005, Yahoo's quarterly earnings reports have been mostly dismal affairs marked by eroding profits, disappointing revenue growth and promises of a turnaround that hasn't emerged.
But most analysts seem to think Yahoo will top their average earnings estimate of 9 cents per share, especially after rival Google Inc. electrified Wall Street late last week with a 30 percent increase in first-quarter profit.
Yahoo management signaled last month the company was on track to hit its first-quarter earnings projections.
Unlike Google, the bar hasn't been set high for Yahoo. The 9 cents per share earnings estimate among analysts surveyed by Thomson Financial represents a slight decline from 10 cents per share that the company made at the same time last year.
Google's first-quarter performance probably gave Microsoft even more incentive to buy Yahoo quickly because further delays will better position Google to widen its lead in the Internet search and advertising market, Collins Stewart analyst Sandeep Aggarwal wrote in a Monday note to investors.
Microsoft views Yahoo as a key weapon in its effort to catch up to Google.
Aggarwal believes Microsoft will boost its Yahoo bid to $33.50 per share, or about $48 billion, to get the deal done more quickly. Other analysts say Microsoft can afford to pay as much as $35 per share, or about $50 billion.
Redmond, Wash.-based Microsoft will update its own finances Thursday when the software maker is scheduled to release fiscal third-quarter results.
Besides reviewing its first-quarter results on Tuesday, Yahoo management also is expected to provide more details about an experimental advertising partnership with Google. The two-week trial is supposed to wrap up Wednesday.
If Yahoo decides to pursue a long-term relationship with Google, it could lift Yahoo's profits and pave the way for possible merger with Time Warner Inc.'s AOL, another Internet pioneer that has been stuck in a funk for years.
Yahoo and AOL reportedly have been in discussions about a possible combination for months. Google owns a 5 percent stake in AOL.
Sanford C. Bernstein analyst Jeffrey Lindsay thinks the moneymaking potential of long-term deal between Yahoo and Google could propel Yahoo's stock price beyond $40 -- a level it hasn't reached in more than two years. Yahoo shares finished at $28.55, up 12 cents Monday.
But other analysts doubt antitrust regulators will let Google and Yahoo join forces, given the two rivals control more than 80 percent of the U.S. search market. In contrast, a combination between Microsoft and Yahoo would hold about 31 percent of the search market -- still well below Google's 60 percent share.
Still, the mere prospect of other Yahoo alliances might be enough to cause Microsoft to boost its bid if Yahoo delivers in the first quarter.
"Yahoo has done a lot of dumb things in this process, but they have been pretty smart lately," said Darren Chervitz, director of research for the Jacob Internet Fund, which owns a stake in Yahoo. "When you get down to it, this is all about squeezing a few more dollars out of Microsoft."
Monday April 21, 5:29 pm ET
By Michael Liedtke, AP Business Writer
Yahoo's first-quarter earnings could determine next step in takeover battle with Microsoft
SAN FRANCISCO (AP) -- After two years of crumbling profits, Yahoo Inc. can't afford another letdown Tuesday when the Internet icon reports its first-quarter earnings.
Although they only cover a three-month period, the results could determine the Sunnyvale-based company's fate as it grapples with an unsolicited takeover offer from Microsoft Corp.
If Yahoo bounces back to exceed analysts' modest expectations, it could be a springboard to a higher bid from Microsoft or provide more credence to management's argument that the company will be better off remaining independent.
But a disappointing quarter would intensify pressure on Yahoo to accept Microsoft's cash-and stock offer, which was worth about $43 billion, or $29.96 per share, as of Monday's trading.
A lackluster performance might even cause Microsoft to lower its bid, a move that almost certainly would provoke a wave of lawsuits from angry shareholders who thought Yahoo should have accepted the offer when it was first made nearly three months ago.
Microsoft so far has insisted its initial bid is fair and has threatened to initiate an attempt to oust Yahoo's board if the 10 directors don't accept the offer by Saturday. This option, known as a proxy contest, might drag the saga into mid-July.
A solid first quarter would make Microsoft's threat less imposing because more Yahoo shareholders might side with the board's thesis that the company is rebounding and will likely be worth a lot more in the months ahead.
Since 2005, Yahoo's quarterly earnings reports have been mostly dismal affairs marked by eroding profits, disappointing revenue growth and promises of a turnaround that hasn't emerged.
But most analysts seem to think Yahoo will top their average earnings estimate of 9 cents per share, especially after rival Google Inc. electrified Wall Street late last week with a 30 percent increase in first-quarter profit.
Yahoo management signaled last month the company was on track to hit its first-quarter earnings projections.
Unlike Google, the bar hasn't been set high for Yahoo. The 9 cents per share earnings estimate among analysts surveyed by Thomson Financial represents a slight decline from 10 cents per share that the company made at the same time last year.
Google's first-quarter performance probably gave Microsoft even more incentive to buy Yahoo quickly because further delays will better position Google to widen its lead in the Internet search and advertising market, Collins Stewart analyst Sandeep Aggarwal wrote in a Monday note to investors.
Microsoft views Yahoo as a key weapon in its effort to catch up to Google.
Aggarwal believes Microsoft will boost its Yahoo bid to $33.50 per share, or about $48 billion, to get the deal done more quickly. Other analysts say Microsoft can afford to pay as much as $35 per share, or about $50 billion.
Redmond, Wash.-based Microsoft will update its own finances Thursday when the software maker is scheduled to release fiscal third-quarter results.
Besides reviewing its first-quarter results on Tuesday, Yahoo management also is expected to provide more details about an experimental advertising partnership with Google. The two-week trial is supposed to wrap up Wednesday.
If Yahoo decides to pursue a long-term relationship with Google, it could lift Yahoo's profits and pave the way for possible merger with Time Warner Inc.'s AOL, another Internet pioneer that has been stuck in a funk for years.
Yahoo and AOL reportedly have been in discussions about a possible combination for months. Google owns a 5 percent stake in AOL.
Sanford C. Bernstein analyst Jeffrey Lindsay thinks the moneymaking potential of long-term deal between Yahoo and Google could propel Yahoo's stock price beyond $40 -- a level it hasn't reached in more than two years. Yahoo shares finished at $28.55, up 12 cents Monday.
But other analysts doubt antitrust regulators will let Google and Yahoo join forces, given the two rivals control more than 80 percent of the U.S. search market. In contrast, a combination between Microsoft and Yahoo would hold about 31 percent of the search market -- still well below Google's 60 percent share.
Still, the mere prospect of other Yahoo alliances might be enough to cause Microsoft to boost its bid if Yahoo delivers in the first quarter.
"Yahoo has done a lot of dumb things in this process, but they have been pretty smart lately," said Darren Chervitz, director of research for the Jacob Internet Fund, which owns a stake in Yahoo. "When you get down to it, this is all about squeezing a few more dollars out of Microsoft."
It's Time for heavier sin-tax
Company Name : BRITISH AMERICAN TOBACCO (MALAYSIA) BERHAD
Stock Name : BAT
Date Announced : 22/04/2008
Financial Year End : 31/12/2008
Quarter : 1
Quarterly report for the financial period ended : 31/03/2008
Revenue 1,021,410
Profit/(loss) before tax 285,142
Profit/(loss) for the period 211,404
Basic earnings/(loss) per share (sen) 74.00
Proposed/Declared dividend per share (sen) 0.00
I believe that the coming Malaysia National Budget will imposes a heavier sin tax on alcohols and cigarettes because their current price is still far below the market equilibrium. Given that the price demand is pretty inelastic, another 10 to 20% increment in such taxation shouldn't cause much impact to the sin market. In fact, the government can utilize these tax money to cover other necessity subsidies.
"I demand a healthier lifestyle.
Public Bank offers gold investment account
Refer to my previous post
Public Bank offers gold investment account
KUALA LUMPUR: Public Bank Bhd has launched a new investment product, Gold Investment Account, that allows customers to purchase the purest available gold commodity in 99.99% fineness at daily prices in ringgit per gram.
Managing director Datuk Seri Tay Ah Lek said in a statement the launch of the product was in line with the recent rise in gold demand and to provide an alternative investment product for customers who wished to earn potentially higher returns.
“The account provides customers with the convenience of investing in gold without the hassle of keeping physical gold, as trading is carried out through a passbook,” he said.
Tay said the initial gold purchase quantity to open an account was 20g and subsequent minimum trading would be 5g and in multiples of 1g.
He said the account would not pay interest and the bank would keep the gold with an authorised custodian bank.
Tay said the bank would make available the physical gold in denominations of 100g, 500g and 1,000g should the customer required physical withdrawal of gold.
“A minimum 2g of gold are to be maintained by the customer to ensure the account remains active,” he said. – Bernama
Public Bank offers gold investment account
KUALA LUMPUR: Public Bank Bhd has launched a new investment product, Gold Investment Account, that allows customers to purchase the purest available gold commodity in 99.99% fineness at daily prices in ringgit per gram.
Managing director Datuk Seri Tay Ah Lek said in a statement the launch of the product was in line with the recent rise in gold demand and to provide an alternative investment product for customers who wished to earn potentially higher returns.
“The account provides customers with the convenience of investing in gold without the hassle of keeping physical gold, as trading is carried out through a passbook,” he said.
Tay said the initial gold purchase quantity to open an account was 20g and subsequent minimum trading would be 5g and in multiples of 1g.
He said the account would not pay interest and the bank would keep the gold with an authorised custodian bank.
Tay said the bank would make available the physical gold in denominations of 100g, 500g and 1,000g should the customer required physical withdrawal of gold.
“A minimum 2g of gold are to be maintained by the customer to ensure the account remains active,” he said. – Bernama
The Things about Credit Card
People loves it, People hates it.
If you ever can't withstand the temptation of impulsive purchasing, STAY AWAY from credit cards. They're evil, at least to YOU.
Let me start with explaining something about credit card.
First and foremost, it is a card, obviously. It maybe square, round, or any other wicked shapes, but still it is a card.
Then, there is something tricky about the word "credit".
Credit is all around us.
You got yourself some credit hours when you scored an A in one of your A-level subject. Corporations got themselves credit-rated by rating agency based on some evaluation criteria. You put in one buck into a slot machine to buy some credits naively hope to won that jumbo jackpot. Then we have credit spread, credit crisis, credit limit, letter of credits, credit entry, blah blah blah.
Similarly, credit cards deal with credit and particularly your credibility in making repayments.
A simple formula illustrates the idea:
Your Value to Bank = Your Real Value + Your Credit Value
This explains why bank want to give you a credit limit higher than your monthly income. If credit limit is at the indiviual real value, basically it is relatively risk free in the sense that the repayment ability is almost guaranteed. The bank can't charge you 18% (In Malaysia) for that! And the demand for credit card would probably decreased significantly.
Risk and Return thingy is here again.
Bank is charging you 18% stated annual interest rate because of the chances that you default is very high. In market, this rate is even higher to lots of junk (BB or below) bonds out there.
Ok, so that is from the bank perspective.
Now, from your perspective as credit borrower (credit card holder).
The important question to answer: Is you as risky as the bank said?
Rule of thumb 1: If your net cash flow* is positive after putting in your credit card debt into the calculator, then most probably the bank is overcharging you for the actual level of default risk you at.
* Simple Net Cash Flow is just your monthly income minus all your expenses.
Rule of thumb 2: If the credit card limit is covered&, again the bank is overcharging you.
& Covered means you have cash or liquidable assets to use for sudden total repayment.
Rule of thumb 3: In the event of impulsive/seasonal purchases, rule 1 and 2 should not be broken.
Basically if the above 3 golden rules are maintained at all costs, then you have no worry becoming a card slave (or i prefer to call them bank slaves)
And if you are so kind and concern about bank profitability when everybody is clearing their card debt every month. No worry, the bank won't go bankrupt. At a minumum the gross revenue of bank will still consists of card merchant charges.
Think of credit card as a cash flow management instrument, but not a debt instrument.
If your lifestyle consists of pretty consistent and predictable cash flows, you definitely should use credit card to further enhance the value of your spending.
Tips on credit card:
1. Not recommend buying those card balance protection insurance thingy. It's a waste of $$. E.g. CitiBank Credit Shield Plus.
2. Always pay the latest possible you can. Leverage on the grace period, unless you afraid you will forget to pay.
3. 2 to 3 cards should be sufficient.
4. Pay whatever you can with your credit card. It helps you to trace your expenses too.
5. Never pay annual fee. If you are required to pay, cancel the card no matter how good it is. I was used to be a "loyal" card member of a foreign bank in Malaysia that paid more than 3 years of annual fees and yet it doesn't help when I was requesting for increased of credit limit. They just go my cancellation without even apologizing to me. Right after I cancelled that card, another foreign bank immediately approved a card with the limit i wanted.
Good luck.
If you ever can't withstand the temptation of impulsive purchasing, STAY AWAY from credit cards. They're evil, at least to YOU.
Let me start with explaining something about credit card.
First and foremost, it is a card, obviously. It maybe square, round, or any other wicked shapes, but still it is a card.
Then, there is something tricky about the word "credit".
Credit is all around us.
You got yourself some credit hours when you scored an A in one of your A-level subject. Corporations got themselves credit-rated by rating agency based on some evaluation criteria. You put in one buck into a slot machine to buy some credits naively hope to won that jumbo jackpot. Then we have credit spread, credit crisis, credit limit, letter of credits, credit entry, blah blah blah.
Similarly, credit cards deal with credit and particularly your credibility in making repayments.
A simple formula illustrates the idea:
Your Value to Bank = Your Real Value + Your Credit Value
This explains why bank want to give you a credit limit higher than your monthly income. If credit limit is at the indiviual real value, basically it is relatively risk free in the sense that the repayment ability is almost guaranteed. The bank can't charge you 18% (In Malaysia) for that! And the demand for credit card would probably decreased significantly.
Risk and Return thingy is here again.
Bank is charging you 18% stated annual interest rate because of the chances that you default is very high. In market, this rate is even higher to lots of junk (BB or below) bonds out there.
Ok, so that is from the bank perspective.
Now, from your perspective as credit borrower (credit card holder).
The important question to answer: Is you as risky as the bank said?
Rule of thumb 1: If your net cash flow* is positive after putting in your credit card debt into the calculator, then most probably the bank is overcharging you for the actual level of default risk you at.
* Simple Net Cash Flow is just your monthly income minus all your expenses.
Rule of thumb 2: If the credit card limit is covered&, again the bank is overcharging you.
& Covered means you have cash or liquidable assets to use for sudden total repayment.
Rule of thumb 3: In the event of impulsive/seasonal purchases, rule 1 and 2 should not be broken.
Basically if the above 3 golden rules are maintained at all costs, then you have no worry becoming a card slave (or i prefer to call them bank slaves)
And if you are so kind and concern about bank profitability when everybody is clearing their card debt every month. No worry, the bank won't go bankrupt. At a minumum the gross revenue of bank will still consists of card merchant charges.
Think of credit card as a cash flow management instrument, but not a debt instrument.
If your lifestyle consists of pretty consistent and predictable cash flows, you definitely should use credit card to further enhance the value of your spending.
Scenario A: Monthly Spending
Assuming all the expenses are chargeable to your credit card.
Foods: $400
Transportation: $400
Social and Entertainment: $200
Total: $1,000.00
Normally your card issuer will give you gift point at rate of $1 to 1 point and usually 1 point is worth $0.005 in monetary value.
So, you earned yourself $5 worth of point.
Then on top of that you got at least 20 days (in Malaysia) grace period until next period.
The 1 month fixed deposit rate in Malaysia now is around 3.1% which in turn is 0.258%for one month tenur.
By saving the cash first in fixed deposit account, now you earned another 0.258% by not paying upfront by cash when spending.
In total you now saved a roughly percentage of 0.5% + 0.258% = 0.758% for one month.
In one year time, you can save like 0.758% x 12 = 9% of your average monthly spending which is $90.
Scenario B: Unforeseen circumstances
In Malaysia, we don't have social medical plan like the one in UK or US. Usually we will buy health/hospitalization insurances to hedge the risk of encountering these unwanted events. However even you subscribed to those insurance plans, sometimes (and many times!) the hospital need you to place certain amount of deposit before they allow you to be admitted. In the worst scenario, your medical expenses reimbursement might be released only after 1 or 2 months after you paid the thing yourself.
What if.. just what if.. you don't have any cash at this critical point in time. Someone's life might be at stake and the hospital want to see some money. Yeap, you strew it up.
Credit card can definitely a help here. What you can do is swipe the card to pay the deposit, then you will have 20 days as grace period before repayment. If your claim is not approved by then, some cards allow you to convert your transaction to ZERO (0%) instalment plan at a marginal administration fee (Usually not more than 4% for a 12 month instalment plan).
Your crisis solved and saving the life of the one you love is priceless.
Tips on credit card:
1. Not recommend buying those card balance protection insurance thingy. It's a waste of $$. E.g. CitiBank Credit Shield Plus.
2. Always pay the latest possible you can. Leverage on the grace period, unless you afraid you will forget to pay.
3. 2 to 3 cards should be sufficient.
4. Pay whatever you can with your credit card. It helps you to trace your expenses too.
5. Never pay annual fee. If you are required to pay, cancel the card no matter how good it is. I was used to be a "loyal" card member of a foreign bank in Malaysia that paid more than 3 years of annual fees and yet it doesn't help when I was requesting for increased of credit limit. They just go my cancellation without even apologizing to me. Right after I cancelled that card, another foreign bank immediately approved a card with the limit i wanted.
Good luck.
Malaysia 2008 Crime & Safety Report
Malaysia 2008 Crime & Safety Report
Crime & Safety
East Asia / Pacific - Malaysia
9 Apr 2008
Overall Crime and Safety Situation
The overall crime rate in Malaysia is medium and violent crime against expatriates is relatively uncommon. Most criminal activity directed against foreigners is limited to non-violent crimes such as petty theft, purse snatching, and credit card fraud. Residential break-ins occur and are becoming more frequent, but have not resulted in injuries to the occupants.
As stated above, purse snatching is a frequently reported crime against expatriates and Malaysian citizens. The usual modus operandi (MO) is one or two males on a motorbike approaching the target from the rear and snatching a purse, handbag, or cell phone. This type of snatch and run tactic has even been executed by occupants leaning out of automobiles. The most common targets are women walking alongside a thoroughfare. These robberies occur at all hours, in front of witnesses, and even in upscale neighborhoods. At times, victims have been injured or even killed after being dragged by robbers attempting to snatch the victims’ shoulder bags.
Credit card fraud continues to be a problem in Malaysia, although enhanced technology has somewhat reduced reported instances of fraud. Unauthorized charges may not show up on a credit card for several months, but can unexpectedly appear in amounts of $5,000 or more. One of the more common MOs is for retail employees to swipe the credit card in a legitimate transaction under the counter, where account information is “skimmed” into a machine that either transmits or stores the information for reproduction. In some cases, more sophisticated criminals have tapped into data lines of legitimate establishments to obtain account information. ATM cash withdrawals are safe, as long as the ATMs used are associated with reputable Malaysian or international banks.
Residential burglaries in Kuala Lumpur (KL) occur. Stand-alone residences in neighborhoods with large expatriate communities are common targets. Some burglars have entered when occupants were still at home, threatening the occupants with weapons, usually blades of some sort. The Regional Security Officer (RSO) has not received any reports to date of injuries to these victims. Vehicular burglaries also occur, targeting vehicles parked at residences or alongside city streets. As in most burglaries, criminals usually hit soft targets with obvious vulnerabilities and/or with valuables in plain view. Gated apartment complexes with 24-hour guards have a much lower burglary rate than other residential units, and apartments in general are burglarized less often than stand-alone residences. Major international hotels that maintain good security enjoy a low incidence of crimes.
Vehicles in Malaysia are driven on the right-hand side of the street, and traffic moves on the left-hand side of the road. Roads, especially highways, are generally maintained. Monsoon rains can quickly flood roads in low-lying areas, usually outside of KL. Traffic in Malaysia is very heavy, especially in and around KL. Motorbikes are numerous and weave in and out of traffic, cross into oncoming traffic lanes, and run red lights. This poses a major hazard for both drivers and pedestrians who are unfamiliar with Malaysian traffic patterns. Drivers should be vigilant for motorbikes at all times, but especially when turning or making a lane change. Road rage is known to occur on occasion. Drivers are advised to avoid confrontational behavior, especially when involved in vehicular collisions. If threatened, drivers should leave the area and report the incident to the police within 24 hours.
Police operate sobriety checkpoints in many entertainment districts frequented by foreigners. At these checkpoints, drivers are required to submit to alcohol breath tests and are subject to arrest if the police officer determines the breath sample to be over the limit. Malaysian drinking and driving laws are strictly enforced with serious penalties.
Political Violence and Terrorism
Since 1969, political violence in Malaysia has been almost non-existent; however, Malaysia is currently experiencing increased demonstrations over racial tensions, political divisions, and U.S. policies in the Middle East, with some rare associated outbursts of violence.
There are two main terrorist groups in the Southeast Asia region, Abu-Sayyaf Group (ASG) and Jemaah Islamiyah (JI), which have suspected links with al-Qaeda. There have been numerous terrorist attacks in the region, but so far Malaysia has not had any significant terrorist activity.
There are currently no direct or specific threats of terrorism against U.S. interests in Malaysia. ASG is based in the southern Philippines and has kidnapped tourists for ransom on the off-shore islands along the eastern coasts of Sabah.
Post-Specific Concerns
Malaysia’s location makes it less susceptible to earthquakes and tsunamis than other countries in Southeast Asia. A tropical monsoon season lasts from November to about mid-February in Malaysia. During this period, heavy rains and thunderstorms occur almost daily. Urban areas with poor drainage and other low-lying areas can suffer flooding. In less-developed rural areas, this flooding can cause landslides.
The ASG has kidnapped foreigners in Malaysia in recent years. Criminal elements are also responsible for kidnapping and piracy committed against foreigners. These acts of violence have occurred in the eastern islands and coastal areas of the state of Sabah, closest to the border with the Philippines. The most recent incident involving American citizens occurred in 2000. There are indications that both criminal and terrorist groups continue to plan acts of violence against foreigners.
Police Response
The Royal Malaysian Police (RMP) is a national police force that is well trained and equipped. The RMP generally provides excellent law enforcement support to the U.S. Embassy and has consistently responded favorably to the needs of the U.S. private sector, and American citizens in general.
Penalties for breaking the law can be more severe than in the United States for similar offenses. People violating the law, even unknowingly, may be fined, expelled, arrested, or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Malaysia are severe, and convicted offenders can expect long jail sentences and heavy fines. Malaysia strictly enforces its drug laws. Malaysian legislation provides for a mandatory death penalty for convicted drug traffickers. Individuals arrested in possession of 15 grams (1/2 ounce) of heroin or 200 grams (seven ounces) of marijuana are presumed by law to be trafficking in drugs. If an American citizen encounters an incident of police detention or harassment, the embassy should be notified immediately.
Victims of crimes should call the national emergency telephone number: 999, the Malaysian equivalent of 911 in the United States. In tourist areas, the RMP has established small “Tourist Police” stations.
Medical Emergencies
Kuala Lumpur has modern facilities that are almost comparable, in terms of quality of care, to those in the U.S. In an emergency, it is recommended the victim be transported immediately to a hospital. The two recommended hospitals in the KL are:
Prince Court Medical Center: 03-4255-2717, at the corner of Jalan Tun Razak and Jalan Kia Peng
Gleneagles Intan Medical Center: 2160-6000, 282 Jalan Ampang
Local emergency services are unreliable and the staff is not trained to U.S. standards. However, if ambulance transport is required, two recommended services are:
St. John Ambulance: 03-4257-8726
Red Crescent Ambulance: 03-9285-5294
How to Avoid Becoming a Victim
To avoid becoming the victim of a purse snatching, be alert and aware of your surroundings. Pedestrians should walk facing traffic and keep a close eye on all vehicular traffic, particularly motorcycles. If possible, try to walk on the sidewalk away from the curb. Avoid poorly lit streets, shortcuts, and narrow alleys. Purses or shoulder bags should be closed and tucked under the arm. Do not wrap the strap around your arm or shoulder, as people have been injured or killed by being pulled to the ground by their purse straps as the robbers speed off. If your purse or bag is snatched, immediately let go of it. Do not struggle with the attacker. Remain calm until the incident is over, and report the incident as soon as possible to the police.
Travelers in Malaysia should avoid using credit cards if possible, and credit card numbers should be closely safeguarded at all times. Travelers should watch retailers closely and any “under the table” transactions should be reported to the local police. If you must use a credit card in Malaysia, you are advised to check your account information frequently for fraudulent charges.
While most streets are safe to walk, downtown areas around bars and discos tend to become less hospitable after midnight. Prostitution is illegal in Malaysia, but is still prevalent. There are reports of foreigners being drugged and robbed after availing themselves of a prostitute’s services.
How to Contact the Embassy
Routine public inquiries from American citizens about security and safety in Malaysia should be directed to the American Citizen Services (ACS) section of the embassy during normal business hours. For emergencies outside of normal business hours, call the embassy main line and listen to the recorded instructions or call the embassy’s Duty Officer.
Contact Information
Regional Security Office: +60-3-2168-5111
Embassy main line: +60-3-2168-5000
Embassy health unit: +60-3-2168-2391
Consular Affairs: +60-3-2168-2393
ACS: +60-3-2168-3300
Political section: +60-3-2168-4843
Economics section: +60-3-2168-4957
Post One: +60-3-2168-4959
Embassy Duty Officer: +60-12-218-4691
OSAC Country Council
OSAC meetings are organized by the American Malaysian Chamber of Commerce (AMCHAM). The OSAC point-of-contact within AMCHAM, Assistant Manager of Events and Programs, can be reached at: +60-3-2148-2407.
Crime & Safety
East Asia / Pacific - Malaysia
9 Apr 2008
Overall Crime and Safety Situation
The overall crime rate in Malaysia is medium and violent crime against expatriates is relatively uncommon. Most criminal activity directed against foreigners is limited to non-violent crimes such as petty theft, purse snatching, and credit card fraud. Residential break-ins occur and are becoming more frequent, but have not resulted in injuries to the occupants.
As stated above, purse snatching is a frequently reported crime against expatriates and Malaysian citizens. The usual modus operandi (MO) is one or two males on a motorbike approaching the target from the rear and snatching a purse, handbag, or cell phone. This type of snatch and run tactic has even been executed by occupants leaning out of automobiles. The most common targets are women walking alongside a thoroughfare. These robberies occur at all hours, in front of witnesses, and even in upscale neighborhoods. At times, victims have been injured or even killed after being dragged by robbers attempting to snatch the victims’ shoulder bags.
Credit card fraud continues to be a problem in Malaysia, although enhanced technology has somewhat reduced reported instances of fraud. Unauthorized charges may not show up on a credit card for several months, but can unexpectedly appear in amounts of $5,000 or more. One of the more common MOs is for retail employees to swipe the credit card in a legitimate transaction under the counter, where account information is “skimmed” into a machine that either transmits or stores the information for reproduction. In some cases, more sophisticated criminals have tapped into data lines of legitimate establishments to obtain account information. ATM cash withdrawals are safe, as long as the ATMs used are associated with reputable Malaysian or international banks.
Residential burglaries in Kuala Lumpur (KL) occur. Stand-alone residences in neighborhoods with large expatriate communities are common targets. Some burglars have entered when occupants were still at home, threatening the occupants with weapons, usually blades of some sort. The Regional Security Officer (RSO) has not received any reports to date of injuries to these victims. Vehicular burglaries also occur, targeting vehicles parked at residences or alongside city streets. As in most burglaries, criminals usually hit soft targets with obvious vulnerabilities and/or with valuables in plain view. Gated apartment complexes with 24-hour guards have a much lower burglary rate than other residential units, and apartments in general are burglarized less often than stand-alone residences. Major international hotels that maintain good security enjoy a low incidence of crimes.
Vehicles in Malaysia are driven on the right-hand side of the street, and traffic moves on the left-hand side of the road. Roads, especially highways, are generally maintained. Monsoon rains can quickly flood roads in low-lying areas, usually outside of KL. Traffic in Malaysia is very heavy, especially in and around KL. Motorbikes are numerous and weave in and out of traffic, cross into oncoming traffic lanes, and run red lights. This poses a major hazard for both drivers and pedestrians who are unfamiliar with Malaysian traffic patterns. Drivers should be vigilant for motorbikes at all times, but especially when turning or making a lane change. Road rage is known to occur on occasion. Drivers are advised to avoid confrontational behavior, especially when involved in vehicular collisions. If threatened, drivers should leave the area and report the incident to the police within 24 hours.
Police operate sobriety checkpoints in many entertainment districts frequented by foreigners. At these checkpoints, drivers are required to submit to alcohol breath tests and are subject to arrest if the police officer determines the breath sample to be over the limit. Malaysian drinking and driving laws are strictly enforced with serious penalties.
Political Violence and Terrorism
Since 1969, political violence in Malaysia has been almost non-existent; however, Malaysia is currently experiencing increased demonstrations over racial tensions, political divisions, and U.S. policies in the Middle East, with some rare associated outbursts of violence.
There are two main terrorist groups in the Southeast Asia region, Abu-Sayyaf Group (ASG) and Jemaah Islamiyah (JI), which have suspected links with al-Qaeda. There have been numerous terrorist attacks in the region, but so far Malaysia has not had any significant terrorist activity.
There are currently no direct or specific threats of terrorism against U.S. interests in Malaysia. ASG is based in the southern Philippines and has kidnapped tourists for ransom on the off-shore islands along the eastern coasts of Sabah.
Post-Specific Concerns
Malaysia’s location makes it less susceptible to earthquakes and tsunamis than other countries in Southeast Asia. A tropical monsoon season lasts from November to about mid-February in Malaysia. During this period, heavy rains and thunderstorms occur almost daily. Urban areas with poor drainage and other low-lying areas can suffer flooding. In less-developed rural areas, this flooding can cause landslides.
The ASG has kidnapped foreigners in Malaysia in recent years. Criminal elements are also responsible for kidnapping and piracy committed against foreigners. These acts of violence have occurred in the eastern islands and coastal areas of the state of Sabah, closest to the border with the Philippines. The most recent incident involving American citizens occurred in 2000. There are indications that both criminal and terrorist groups continue to plan acts of violence against foreigners.
Police Response
The Royal Malaysian Police (RMP) is a national police force that is well trained and equipped. The RMP generally provides excellent law enforcement support to the U.S. Embassy and has consistently responded favorably to the needs of the U.S. private sector, and American citizens in general.
Penalties for breaking the law can be more severe than in the United States for similar offenses. People violating the law, even unknowingly, may be fined, expelled, arrested, or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Malaysia are severe, and convicted offenders can expect long jail sentences and heavy fines. Malaysia strictly enforces its drug laws. Malaysian legislation provides for a mandatory death penalty for convicted drug traffickers. Individuals arrested in possession of 15 grams (1/2 ounce) of heroin or 200 grams (seven ounces) of marijuana are presumed by law to be trafficking in drugs. If an American citizen encounters an incident of police detention or harassment, the embassy should be notified immediately.
Victims of crimes should call the national emergency telephone number: 999, the Malaysian equivalent of 911 in the United States. In tourist areas, the RMP has established small “Tourist Police” stations.
Medical Emergencies
Kuala Lumpur has modern facilities that are almost comparable, in terms of quality of care, to those in the U.S. In an emergency, it is recommended the victim be transported immediately to a hospital. The two recommended hospitals in the KL are:
Prince Court Medical Center: 03-4255-2717, at the corner of Jalan Tun Razak and Jalan Kia Peng
Gleneagles Intan Medical Center: 2160-6000, 282 Jalan Ampang
Local emergency services are unreliable and the staff is not trained to U.S. standards. However, if ambulance transport is required, two recommended services are:
St. John Ambulance: 03-4257-8726
Red Crescent Ambulance: 03-9285-5294
How to Avoid Becoming a Victim
To avoid becoming the victim of a purse snatching, be alert and aware of your surroundings. Pedestrians should walk facing traffic and keep a close eye on all vehicular traffic, particularly motorcycles. If possible, try to walk on the sidewalk away from the curb. Avoid poorly lit streets, shortcuts, and narrow alleys. Purses or shoulder bags should be closed and tucked under the arm. Do not wrap the strap around your arm or shoulder, as people have been injured or killed by being pulled to the ground by their purse straps as the robbers speed off. If your purse or bag is snatched, immediately let go of it. Do not struggle with the attacker. Remain calm until the incident is over, and report the incident as soon as possible to the police.
Travelers in Malaysia should avoid using credit cards if possible, and credit card numbers should be closely safeguarded at all times. Travelers should watch retailers closely and any “under the table” transactions should be reported to the local police. If you must use a credit card in Malaysia, you are advised to check your account information frequently for fraudulent charges.
While most streets are safe to walk, downtown areas around bars and discos tend to become less hospitable after midnight. Prostitution is illegal in Malaysia, but is still prevalent. There are reports of foreigners being drugged and robbed after availing themselves of a prostitute’s services.
How to Contact the Embassy
Routine public inquiries from American citizens about security and safety in Malaysia should be directed to the American Citizen Services (ACS) section of the embassy during normal business hours. For emergencies outside of normal business hours, call the embassy main line and listen to the recorded instructions or call the embassy’s Duty Officer.
Contact Information
Regional Security Office: +60-3-2168-5111
Embassy main line: +60-3-2168-5000
Embassy health unit: +60-3-2168-2391
Consular Affairs: +60-3-2168-2393
ACS: +60-3-2168-3300
Political section: +60-3-2168-4843
Economics section: +60-3-2168-4957
Post One: +60-3-2168-4959
Embassy Duty Officer: +60-12-218-4691
OSAC Country Council
OSAC meetings are organized by the American Malaysian Chamber of Commerce (AMCHAM). The OSAC point-of-contact within AMCHAM, Assistant Manager of Events and Programs, can be reached at: +60-3-2148-2407.
Monday, April 21, 2008
Chinese heckle Olympic torch run protesters in Malaysia
Supporters of China grab a pro-Tibet banner unfurled by a Japanese man before the start of the Beijing Olympic Torch relay in Kuala Lumpur, Malaysia, today.
Chinese heckle Olympic torch run protesters in Malaysia
By JULIA ZAPPEI • Associated Press • April 21, 2008
KUALA LUMPUR, Malaysia — A crowd of Chinese onlookers heckled and hit a Japanese family with inflated plastic batons today after the three unfurled a Tibetan flag before the start of the Malaysian leg of the Olympic torch relay.
The family, comprising two adults and a boy, was detained by police, who also took a Buddhist monk and a British woman wearing a “Free-Tibet” T-shirt into custody. The woman and monk were later released.
About an hour later, the president of the Olympic Council of Malaysia, Imran Jaafar, set off with the torch, jogging a short distance before handing it to the next runner in the relay covering 10 miles through downtown Kuala Lumpur.
“I am very excited, very honored to be the first runner. The honor is not just for myself, but also for the country,” Imran said.
The relay, which started in blistering sun, ended about four hours later in blinding rain at the iconic Petronas Twin Towers after passing through the hands of 80 runners.
Criticism of China’s human rights record has turned the Olympics into one of the most contentious in recent history.
Protests have dogged the torch relay during its stops in Paris, London and San Francisco, with demonstrations over China’s crackdown in Tibet where it forcefully put down anti-government riots.
Witnesses said the adult couple and the boy were heckled by Chinese bystanders during the confrontation at Independence Square where the 10-mile relay began.
Scenes captured by a television cameraman showed some of the Chinese supporters striking the family members with plastic blow-up batons that they were carrying to celebrate the occasion.
Some shouted “Taiwan and Tibet belong to China” during the confrontation.
Police intervened and took the Japanese family away.
The supporters carried Chinese flags and waved banners that read: “The Torch will spread around the world,” and “No one can split China.”
Kuala Lumpur police chief Muhammad Sabtu Osman said the family was detained “only for documentation,” and said he had no information that they were beaten by others in the crowd.
Muhammad Sabtu, the police chief, said the monk, whose nationality was not known, and the British women wearing a “Free Tibet” T-shirt were detained because they were not carrying their passports. Both were freed a few hours later, he said.
Japanese Embassy officials meanwhile were negotiating with police for the release of the family.
A group of Chinese lion dancers and drummers heralded the run through a secure corridor guarded by some 1,000 policemen and commandos.
As the runners passed through Chinatown, hundreds of schoolchildren and other Chinese supporters cheered and waved small Malaysian flags.
Sacred flame sends off sparks in Malaysia
Sacred flame sends off sparks in Malaysia
Updated：2008-04-21
Jiang Xiaoyu gives a brief speech at Malaysia’s torch launching ceremony.
(KUALA LUMPUR, April 21) -- At 2:00 p.m. local time (0600 GMT) the Kuala Lumpur leg of the global torch relay began from the Malaysian capital's Dataran Merdeka (Independence Square). About 4 hours later, it is scheduled to reach the Petronas Twin Towers where it will be celebrated with a grand ceremony. Kuala Lumpur is the thirteenth stop of the 2008 worldwide Olympic torch relay outside of the Chinese mainland.
At the launching ceremony, Olympic Council of Malaysia (OCM) president Tunku Tan Sri Imran Tuanku Ja'afar gave a brief speech where he spoke about the honor his country feels of being selected as a stop on the global route. Malaysians will remember this day forever, he pronounced. He also wished the Beijing Olympics success in his address. The OCM president is the first torchbearer on Malaysia's route.
Y. Bhg. Datuk Haji Ruslin bin Haji Hasan, Kuala Lumpur's mayor, also spoke to the expectant audience before the start of the relay, thanking BOCOG for selecting the capital as a stop on the worldwide route, allowing the city to show itself off to a global audience. The torch relay will be a success, he continued.
OCM president Tunku Tan Sri Imran Tuanku Ja’afar, first torchbearer in Kuala Lumpur.
After a short speech, BOCOG vice-president Jiang Xiaoyu passed the torch on, signaling the beginning of the relay in Malaysia.
Kuala Lumpur's 10.8 km route passes through key historic and tourist sites in the city. Among the eighty torchbearers scheduled for the run, members of the country's government, various athletes, and celebrities will carry the sacred flame, including former Olympic competitors Cheah Soon Kit, Yap Kim Hock, Jalani Razif, Rashid Razif, and current women's world number one squash player Nicol David.
Updated：2008-04-21
Jiang Xiaoyu gives a brief speech at Malaysia’s torch launching ceremony.
(KUALA LUMPUR, April 21) -- At 2:00 p.m. local time (0600 GMT) the Kuala Lumpur leg of the global torch relay began from the Malaysian capital's Dataran Merdeka (Independence Square). About 4 hours later, it is scheduled to reach the Petronas Twin Towers where it will be celebrated with a grand ceremony. Kuala Lumpur is the thirteenth stop of the 2008 worldwide Olympic torch relay outside of the Chinese mainland.
At the launching ceremony, Olympic Council of Malaysia (OCM) president Tunku Tan Sri Imran Tuanku Ja'afar gave a brief speech where he spoke about the honor his country feels of being selected as a stop on the global route. Malaysians will remember this day forever, he pronounced. He also wished the Beijing Olympics success in his address. The OCM president is the first torchbearer on Malaysia's route.
Y. Bhg. Datuk Haji Ruslin bin Haji Hasan, Kuala Lumpur's mayor, also spoke to the expectant audience before the start of the relay, thanking BOCOG for selecting the capital as a stop on the worldwide route, allowing the city to show itself off to a global audience. The torch relay will be a success, he continued.
OCM president Tunku Tan Sri Imran Tuanku Ja’afar, first torchbearer in Kuala Lumpur.
After a short speech, BOCOG vice-president Jiang Xiaoyu passed the torch on, signaling the beginning of the relay in Malaysia.
Kuala Lumpur's 10.8 km route passes through key historic and tourist sites in the city. Among the eighty torchbearers scheduled for the run, members of the country's government, various athletes, and celebrities will carry the sacred flame, including former Olympic competitors Cheah Soon Kit, Yap Kim Hock, Jalani Razif, Rashid Razif, and current women's world number one squash player Nicol David.
China stocks plunge as PetroChina falls below IPO price
Warren Buffett sold them like ages ago, do you think he's darn smart now? :p
There's reason why he's one of the most successful investors in mankind history: He definitely got access to material, non-public information or else his market sensitivity radar must be the state of the art.
China stocks plunge as PetroChina falls below IPO price
INTO THE BEAR'S PAWS: After enjoying a two-year bull run, Chinese investors are now suffering amid a downtrend that analysts say has yet to find a bottom.
The Straits Times, April 19, 2008
SHANGHAI - CHINA'S share market tumbled nearly 4 per cent to a 12-month closing low yesterday, as the biggest stock - PetroChina - dropped for the first time below its price in last October's Shanghai initial public offering (IPO).
After leaping more than sixfold in a two-year bull run, the market has been gripped for six months by a downtrend caused by high inflation, a threatened slowdown of the Chinese economy this year and heavy supplies of new equity.
The Shanghai Composite Index slid 3.97 per cent to end at 3,094.668 points, near its intra-day low of 3,078.174. It lost 11.4 per cent this week, its biggest weekly drop since 1996. It is now 49 per cent below last October's record peak.
Panic spread yesterday, as PetroChina broke its IPO price of 16.7 yuan. Since the oil giant was the most heavily weighted share in the index, the break was seen as negative for the whole market, implying institutions were so bearish that they were willing to take losses to exit the stock.
PetroChina closed 5.04 per cent lower at 16.02 yuan, after touching a low of 16 yuan, pressured by expectations that high global oil prices would cause losses at its refining operations.
In recent weeks, PetroChina repeatedly hit - but did not break - its IPO price, and traders said some institutions appeared to be mounting a support operation for the stock to prevent panic in the market. But yesterday, this support suddenly vanished.
PetroChina's Shanghai-listed A-shares have dropped 64 per cent since their first day of trade in November, when they more than doubled, causing the company temporarily to eclipse Exxon Mobil as the world's largest firm by market capitalisation.
The shares may fall further yet. Some traders talk of targets around 15 yuan. The A-shares still command a premium of more than 80 per cent over the firm's Hong Kong-listed shares.
Pressure for premiums to narrow has become intense. The average premium for dual-listed Chinese companies fell as low as 32 per cent yesterday.
Some analysts see support for the Shanghai index at around 3,000 points, but many do not rule out a break below 3,000 if PetroChina stays weak.
'Several shares have plunged below their net asset values for the first time in over two years. This shows how deep the panic is,' said Huatai Securities analyst Chen Jinren.
There's reason why he's one of the most successful investors in mankind history: He definitely got access to material, non-public information or else his market sensitivity radar must be the state of the art.
Introducing the Mosaic Theory
Investopedia defines the Mosaic Theory as:
A method of analysis used by security analysts to gather information about a corporation. Mosaic theory involves collecting public, non-public and non-material information about a company in order to determine the underlying value of the company's securities and to enable the analyst to make recommendations to clients based on that information.
Applying the Mosaic Theory is as much art as it is science. You basically have to gather as many bits and pieces of information as you can, see if they tell a story that makes sense, and then decide whether there is enough profit potential to enter a trade.
China stocks plunge as PetroChina falls below IPO price
INTO THE BEAR'S PAWS: After enjoying a two-year bull run, Chinese investors are now suffering amid a downtrend that analysts say has yet to find a bottom.
The Straits Times, April 19, 2008
SHANGHAI - CHINA'S share market tumbled nearly 4 per cent to a 12-month closing low yesterday, as the biggest stock - PetroChina - dropped for the first time below its price in last October's Shanghai initial public offering (IPO).
After leaping more than sixfold in a two-year bull run, the market has been gripped for six months by a downtrend caused by high inflation, a threatened slowdown of the Chinese economy this year and heavy supplies of new equity.
The Shanghai Composite Index slid 3.97 per cent to end at 3,094.668 points, near its intra-day low of 3,078.174. It lost 11.4 per cent this week, its biggest weekly drop since 1996. It is now 49 per cent below last October's record peak.
Panic spread yesterday, as PetroChina broke its IPO price of 16.7 yuan. Since the oil giant was the most heavily weighted share in the index, the break was seen as negative for the whole market, implying institutions were so bearish that they were willing to take losses to exit the stock.
PetroChina closed 5.04 per cent lower at 16.02 yuan, after touching a low of 16 yuan, pressured by expectations that high global oil prices would cause losses at its refining operations.
In recent weeks, PetroChina repeatedly hit - but did not break - its IPO price, and traders said some institutions appeared to be mounting a support operation for the stock to prevent panic in the market. But yesterday, this support suddenly vanished.
PetroChina's Shanghai-listed A-shares have dropped 64 per cent since their first day of trade in November, when they more than doubled, causing the company temporarily to eclipse Exxon Mobil as the world's largest firm by market capitalisation.
The shares may fall further yet. Some traders talk of targets around 15 yuan. The A-shares still command a premium of more than 80 per cent over the firm's Hong Kong-listed shares.
Pressure for premiums to narrow has become intense. The average premium for dual-listed Chinese companies fell as low as 32 per cent yesterday.
Some analysts see support for the Shanghai index at around 3,000 points, but many do not rule out a break below 3,000 if PetroChina stays weak.
'Several shares have plunged below their net asset values for the first time in over two years. This shows how deep the panic is,' said Huatai Securities analyst Chen Jinren.
Saturday, April 19, 2008
As the boss moves online, Facebook users squirm
As the boss moves online, Facebook users squirm
By Johnny Diaz The Boston GlobePublished: April 17, 2008
Ali Riaz has 126 friends on his facebook.com account. Ten of them are his employees.
Riaz does not mind befriending his staff members online — as long as they initiate the process. "I don't want to impose," said Riaz, chief executive officer of Attivio, a software company in Newton, Massachusetts. "Everyone has a different definition of what is personal and private. There is a line there, but it's a wiggly line. Whenever you are in a power position, you have to be careful."
Networking sites like MySpace and Facebook introduce people to new friends and expand their cybercircles of pals. But they are also introducing people to a sticky etiquette issue that is becoming more common: What if your boss wants to be your buddy?
That can be an awkward intersection for people who try to keep their personal spaces and their workplaces separate. But as professional and personal worlds increasingly collide online, it's becoming harder to escape the boss's reach after hours.
The issue has set off debate among bloggers and online denizens. Should you accept your boss's invitation to online friendship, which would allow him or her to see your roster of acquaintances, party photos, videos and social activities? Do you dare reject the token of virtual friendship and possibly commit career suicide? Or should you, as one blogger suggests: "Deny, deny, deny. Pretend as if you never saw the friend request."
Related Articles
Facebook said to be near accord over site's origin
Today in Technology & Media
Era of in-flight mobile phone use begins in Europe
Google earnings defy economic downturn
From blog entry to thorn in Obama's side
Before Facebook, these issues often surfaced when a boss invited a subordinate for dinner or a professor looked to socialize with students outside school. But Facebook's growing popularity — 70 million users — has made the encounters more frequent.
And a face-to-face invitation from a superior might be harder to reject than an informal one online.
As the site has evolved from an exclusive online college community into a general public cyber happy hour, it has also attracted the corporate and academic worlds.
Sue Murphy, a manager with the National Human Resources Association trade group, has heard fellow professionals and college students fret about whether to allow employers to join their social sites.
Her advice: Create two online pages — one for socializing, the other for professional purposes.
"Once you start to incorporate somebody that you are working for into a social, off-the-clock activity, you start to blur the lines of the relationship," Murphy said. "If you are someone who likes to go to a lot of parties and you have pictures of yourself hanging upside down with a keg, the average person will form an impression of you as that individual. You never get a second chance to make a good first impression."
Facebook began in 2004 as a social site for students at Harvard University and soon expanded to other universities. Akin to an online campus, Facebook provided its early users with a place to connect with classmates by adding friends to their networks. When Facebook members add friends to their lists, the links allow the new friends to see their interests, photos, dating preferences and other friends. As its popularity grew, Facebook began admitting high school students. By 2006, Facebook opened its cyberdoors to all. The result: The site's original core demographic began seeing parents and bosses on Facebook. The site's fastest-growing segment is people 25 and older, and more than half of its total users are outside college.
Protests erupted in the past year among Facebook members who complained that the site's privacy-control settings were not strong enough to hide personal details and online activities. Last month, the company introduced new privacy options. Users can now distinguish among those who can view their personal details by classifying people into specific groups like friends, co-workers, classmates or relatives, with each category granted a different level of access. In other words, Facebook members can allow their close friends to see their vacation snapshots but restrict co-workers or relatives from the same access.
Yet the friend requests continue to roll in, and not just from employers. They are professors, parents, even publicists trying to butter up journalists and potential clients.
Ivan Sever, a professor at Berklee College of Music in Boston, sees the issue from the other perspective: He befriends his students only when they ask.
"I wait," said Sever, who uses his online page primarily to keep in touch with his 20-year-old son in Europe. At work, Sever prefers that his students seek him out as a friend.
By Johnny Diaz The Boston GlobePublished: April 17, 2008
Ali Riaz has 126 friends on his facebook.com account. Ten of them are his employees.
Riaz does not mind befriending his staff members online — as long as they initiate the process. "I don't want to impose," said Riaz, chief executive officer of Attivio, a software company in Newton, Massachusetts. "Everyone has a different definition of what is personal and private. There is a line there, but it's a wiggly line. Whenever you are in a power position, you have to be careful."
Networking sites like MySpace and Facebook introduce people to new friends and expand their cybercircles of pals. But they are also introducing people to a sticky etiquette issue that is becoming more common: What if your boss wants to be your buddy?
That can be an awkward intersection for people who try to keep their personal spaces and their workplaces separate. But as professional and personal worlds increasingly collide online, it's becoming harder to escape the boss's reach after hours.
The issue has set off debate among bloggers and online denizens. Should you accept your boss's invitation to online friendship, which would allow him or her to see your roster of acquaintances, party photos, videos and social activities? Do you dare reject the token of virtual friendship and possibly commit career suicide? Or should you, as one blogger suggests: "Deny, deny, deny. Pretend as if you never saw the friend request."
Related Articles
Facebook said to be near accord over site's origin
Today in Technology & Media
Era of in-flight mobile phone use begins in Europe
Google earnings defy economic downturn
From blog entry to thorn in Obama's side
Before Facebook, these issues often surfaced when a boss invited a subordinate for dinner or a professor looked to socialize with students outside school. But Facebook's growing popularity — 70 million users — has made the encounters more frequent.
And a face-to-face invitation from a superior might be harder to reject than an informal one online.
As the site has evolved from an exclusive online college community into a general public cyber happy hour, it has also attracted the corporate and academic worlds.
Sue Murphy, a manager with the National Human Resources Association trade group, has heard fellow professionals and college students fret about whether to allow employers to join their social sites.
Her advice: Create two online pages — one for socializing, the other for professional purposes.
"Once you start to incorporate somebody that you are working for into a social, off-the-clock activity, you start to blur the lines of the relationship," Murphy said. "If you are someone who likes to go to a lot of parties and you have pictures of yourself hanging upside down with a keg, the average person will form an impression of you as that individual. You never get a second chance to make a good first impression."
Facebook began in 2004 as a social site for students at Harvard University and soon expanded to other universities. Akin to an online campus, Facebook provided its early users with a place to connect with classmates by adding friends to their networks. When Facebook members add friends to their lists, the links allow the new friends to see their interests, photos, dating preferences and other friends. As its popularity grew, Facebook began admitting high school students. By 2006, Facebook opened its cyberdoors to all. The result: The site's original core demographic began seeing parents and bosses on Facebook. The site's fastest-growing segment is people 25 and older, and more than half of its total users are outside college.
Protests erupted in the past year among Facebook members who complained that the site's privacy-control settings were not strong enough to hide personal details and online activities. Last month, the company introduced new privacy options. Users can now distinguish among those who can view their personal details by classifying people into specific groups like friends, co-workers, classmates or relatives, with each category granted a different level of access. In other words, Facebook members can allow their close friends to see their vacation snapshots but restrict co-workers or relatives from the same access.
Yet the friend requests continue to roll in, and not just from employers. They are professors, parents, even publicists trying to butter up journalists and potential clients.
Ivan Sever, a professor at Berklee College of Music in Boston, sees the issue from the other perspective: He befriends his students only when they ask.
"I wait," said Sever, who uses his online page primarily to keep in touch with his 20-year-old son in Europe. At work, Sever prefers that his students seek him out as a friend.
Friday, April 18, 2008
High-end weddings weather US crisis
High-end weddings weather US crisis
Couples are a little more careful with their budget, but are still determined to celebrate in style, says a florist
NEW YORK: Investment bank bailouts, home foreclosures and job losses have spread economic gloom through America but in New York, at least, there's one industry still eathering the storm - high-end weddings.
Cake makers, florists, wedding planners and dress-makers at a wedding show this month said brides were still determined to enjoy their big day with almost no expense spared.
While some couples were cutting back on non-essentials, for example having only two bridesmaids instead of four, most vendors at the New York magazine Weddings Showcase in Manhattan said they were yet to see a serious dip in business.
"So far I would say compared to last year, this year people seem to be spending just as much," said Amy Salvini-Swanson, co-owner of Greenwich Letterpress, which offers invitations at anywhere from US$600 to US$1,200 (US$1 = RM3.16) for 100.
Her co-owner, Beth Salvini, added: "People still get married during recessions. It's a safe bet, people still need invitations." It's debatable whether anybody really needs to spend US$10,000 on a personal trainer who offers a 14-day pre-wedding package that also includes vitamins, appetite suppressants and a murky green drink that resembles a grass smoothie.
David Kirsch admits that "no sane bride wants to wait until the last two weeks," but he says his clients have lost as much as 15 pounds on the two-week programme. One celebrity client had to have her dress recut two days before the wedding.
"It is essential. What's more essential than your health and wellbeing?" Kirsch said. "When those doors open up and you're about to walk down the aisle and there are 250 pairs of eyes on you, there's that moment," he said.
Frances Taveras, 27, who recently got engaged, said most of the services at the show were outside her budget, so she was just there to get some ideas. "I had a very small budget in mind so the financial situation isn't playing such a big role," she said. "It's quite conservative at US$20,000."
Xochitl Gonzalez, a wedding planner at Always a Bridesmaid, said she was seeing longer engagements as couples take a little longer to save enough for the wedding,but she still has plenty of takers for her US$15,000 full-service package.
Gonzalez said her company had just started offering a concierge service to take on such tasks as finding a venue or booking hotel rooms on a one-off basis with an hourly fee.
"We were just joking we're going to come up with a subprime wedding package," Gonzalez said. "A planner is a luxury. We're a necessary luxury in New York but it's still a luxury service, so the concierge is meant to bridge that gap."
Jerry Sibal, whose company Design Fusion does decor that can cost up to US$500,000, said the weak US dollar and rising oil prices had pushed up the cost of imported flowers by as much as 20 per cent in a year, but New Yorkers were still buying.
"When I was in Europe, people don't spend because they're afraid to be criticised," he said.
"You'd think people from Amsterdam would spend a lot on flowers, but no, they'll spend on one simple bouquet. New York is different. People love to entertain and be entertained." Cake maker Lauri Ditunno, owner of Cake Alchemy, said her costs had also gone up because of rising commodity prices that have made flour, butter and other ingredients more expensive.
OuLaivanh Jaigla, of Banchet Flowers, said clients were a little more careful with their budget, but still determined to celebrate in style. "I'm seeing there are not as many bridesmaids as there used to be, so there's less on bouquets." Bride-to-be Ishviene Arora, 24, who works at a financial public relations firm, said she was planning a week-long Indian wedding in New York and the economy was not going to change her plans. "We look at it as 'It's one time we're going to do it,' so it's not really affected it," she said.
"Unless you lose your job," her fiance Sorubh Chandani, who works on Wall Street, added. - Reuters
Original Site
Couples are a little more careful with their budget, but are still determined to celebrate in style, says a florist
NEW YORK: Investment bank bailouts, home foreclosures and job losses have spread economic gloom through America but in New York, at least, there's one industry still eathering the storm - high-end weddings.
Cake makers, florists, wedding planners and dress-makers at a wedding show this month said brides were still determined to enjoy their big day with almost no expense spared.
While some couples were cutting back on non-essentials, for example having only two bridesmaids instead of four, most vendors at the New York magazine Weddings Showcase in Manhattan said they were yet to see a serious dip in business.
"So far I would say compared to last year, this year people seem to be spending just as much," said Amy Salvini-Swanson, co-owner of Greenwich Letterpress, which offers invitations at anywhere from US$600 to US$1,200 (US$1 = RM3.16) for 100.
Her co-owner, Beth Salvini, added: "People still get married during recessions. It's a safe bet, people still need invitations." It's debatable whether anybody really needs to spend US$10,000 on a personal trainer who offers a 14-day pre-wedding package that also includes vitamins, appetite suppressants and a murky green drink that resembles a grass smoothie.
David Kirsch admits that "no sane bride wants to wait until the last two weeks," but he says his clients have lost as much as 15 pounds on the two-week programme. One celebrity client had to have her dress recut two days before the wedding.
"It is essential. What's more essential than your health and wellbeing?" Kirsch said. "When those doors open up and you're about to walk down the aisle and there are 250 pairs of eyes on you, there's that moment," he said.
Frances Taveras, 27, who recently got engaged, said most of the services at the show were outside her budget, so she was just there to get some ideas. "I had a very small budget in mind so the financial situation isn't playing such a big role," she said. "It's quite conservative at US$20,000."
Xochitl Gonzalez, a wedding planner at Always a Bridesmaid, said she was seeing longer engagements as couples take a little longer to save enough for the wedding,but she still has plenty of takers for her US$15,000 full-service package.
Gonzalez said her company had just started offering a concierge service to take on such tasks as finding a venue or booking hotel rooms on a one-off basis with an hourly fee.
"We were just joking we're going to come up with a subprime wedding package," Gonzalez said. "A planner is a luxury. We're a necessary luxury in New York but it's still a luxury service, so the concierge is meant to bridge that gap."
Jerry Sibal, whose company Design Fusion does decor that can cost up to US$500,000, said the weak US dollar and rising oil prices had pushed up the cost of imported flowers by as much as 20 per cent in a year, but New Yorkers were still buying.
"When I was in Europe, people don't spend because they're afraid to be criticised," he said.
"You'd think people from Amsterdam would spend a lot on flowers, but no, they'll spend on one simple bouquet. New York is different. People love to entertain and be entertained." Cake maker Lauri Ditunno, owner of Cake Alchemy, said her costs had also gone up because of rising commodity prices that have made flour, butter and other ingredients more expensive.
OuLaivanh Jaigla, of Banchet Flowers, said clients were a little more careful with their budget, but still determined to celebrate in style. "I'm seeing there are not as many bridesmaids as there used to be, so there's less on bouquets." Bride-to-be Ishviene Arora, 24, who works at a financial public relations firm, said she was planning a week-long Indian wedding in New York and the economy was not going to change her plans. "We look at it as 'It's one time we're going to do it,' so it's not really affected it," she said.
"Unless you lose your job," her fiance Sorubh Chandani, who works on Wall Street, added. - Reuters
Original Site
Thursday, April 17, 2008
Errr.... Sir?
I always enjoy my breakfast at a small chinese restaurant in the residential area near where I stayed. The restaurant is basically operated by a married couple and the business is so good that during lunch time you need to wait for seats. Well, of course the crowd is not as ridiculous as those in KL area, but obviously that restaurant is making good cash flow everyday.
The young man (The owner), I think he only like around 30+ years old, one day approached me. He said "Hey, do you play shares? I saw you always read the economy columns".
Eddy: Oh well, I like to be sensitive with economic happenings."
Youngman: Any handsome counters to recommend?
Eddy: (Oh boy) Not really, IMHO, the market outlooks are very discouraging.
Youngman: Aiya, I still stucked with my genting.
Eddy: Oh, Genting? What is your buying price?
Youngman: 6.9 lo, now 6.4, want to make some kopi-money also difficult.
Eddy: Firstly your timing might not be right, secondly your investment horizon seems like too short. If you don't need to liquidate the assets urgently, maybe can hold it for another few years.
Youngman: Aiyo, ok la, let's see what will happen.
Youngman: (He flipped open the newspaper) You have any idea what are these columns mean? (Pointing at P.E., E.P.S in the stock section)
Eddy: (OMG) Hemm.. they are basically some indicators to help you understand more about the company. Rule of thumb is the lower P.E. the better, BUT make sure you understand the industry and other financial elements. Some buaya used simple P.E. to makan your money (Shoot, I started to sound like him)
Youngman: Oh I see. (More customers coming in and I think his wife is staring at him). Talk again.
Eddy: ....
The young man (The owner), I think he only like around 30+ years old, one day approached me. He said "Hey, do you play shares? I saw you always read the economy columns".
Eddy: Oh well, I like to be sensitive with economic happenings."
Youngman: Any handsome counters to recommend?
Eddy: (Oh boy) Not really, IMHO, the market outlooks are very discouraging.
Youngman: Aiya, I still stucked with my genting.
Eddy: Oh, Genting? What is your buying price?
Youngman: 6.9 lo, now 6.4, want to make some kopi-money also difficult.
Eddy: Firstly your timing might not be right, secondly your investment horizon seems like too short. If you don't need to liquidate the assets urgently, maybe can hold it for another few years.
Youngman: Aiyo, ok la, let's see what will happen.
Youngman: (He flipped open the newspaper) You have any idea what are these columns mean? (Pointing at P.E., E.P.S in the stock section)
Eddy: (OMG) Hemm.. they are basically some indicators to help you understand more about the company. Rule of thumb is the lower P.E. the better, BUT make sure you understand the industry and other financial elements. Some buaya used simple P.E. to makan your money (Shoot, I started to sound like him)
Youngman: Oh I see. (More customers coming in and I think his wife is staring at him). Talk again.
Eddy: ....
Yeoh: Bullet train project is environment-friendly
Eddy: I love to see this happen.
Eddy: “tens of billion ringgit”savings in fuel subsidy? According to the law of conservation of energy, energy just can't be recreated (Note: In advanced physics, energy do get annihilated). Savings in one area must be causing the excessive consumptions in other places.
Eddy: Hoo Haa, RM8 Billion project!
Eddy: Bottomline is, I just want to have total access to every details of the project. Costing, timing, subcontractor selection process, billing/markup/margin/etc, covenants of every legally binding contracts, blah blah. In other words, the project must be totally transparent to us, for us to judge whether it is truly beneficial.
Eddy: Yeap, I know total transparency is not going to happen, I just murmuring myself here.
P/S- "Environment Friendly" is a globally, widely abused phrase nowadays. Quantifying the impact is the way to go.
Yeoh: Bullet train project is environment-friendly
Business Times, 12th April 2008
YTL Corp Bhd, a construction and energy group, says the government is supportive of its plan to build a bullet train between Kuala Lumpur and Singapore as it makes economic sense.
It is also a project that the people seem to want, managing director Tan Sri Francis Yeoh said.
“This project is economically viable, so I think the government will listen to the people and put this project on an urgent basis again. Nobody looks at it as a mega project, an artificial project that you do for prestige,” he told reporters after launching the YTL organised Climate Change Week 2008.
When pressed by reporters as to when he expects to get the greenlight for the project, he said: “I think the government is supportive of this project. We’ll see.”
The previous transport minister, Datuk Seri Chan Kong Choy, had said in January that the government was conducting a social impact study on the project, said to be about RM8 billion because it involves land acquisition.
“We are for it (the project),” he’d told Reuters in an interview then.
YTL’s bullet train plan involves travel time between KL and Singapore being cut to just 90 minutes compared with existing trains which take about seven hours.
Yeoh said that the bullet train project would not only save the government “tens of billion ringgit” on fuel subsidies over the long term, but would also cut down the country’s carbon emission significantly.
“This is an environment-friendly project,” he remarked.
Eddy: “tens of billion ringgit”savings in fuel subsidy? According to the law of conservation of energy, energy just can't be recreated (Note: In advanced physics, energy do get annihilated). Savings in one area must be causing the excessive consumptions in other places.
Eddy: Hoo Haa, RM8 Billion project!
Eddy: Bottomline is, I just want to have total access to every details of the project. Costing, timing, subcontractor selection process, billing/markup/margin/etc, covenants of every legally binding contracts, blah blah. In other words, the project must be totally transparent to us, for us to judge whether it is truly beneficial.
Eddy: Yeap, I know total transparency is not going to happen, I just murmuring myself here.
P/S- "Environment Friendly" is a globally, widely abused phrase nowadays. Quantifying the impact is the way to go.
Yeoh: Bullet train project is environment-friendly
Business Times, 12th April 2008
YTL Corp Bhd, a construction and energy group, says the government is supportive of its plan to build a bullet train between Kuala Lumpur and Singapore as it makes economic sense.
It is also a project that the people seem to want, managing director Tan Sri Francis Yeoh said.
“This project is economically viable, so I think the government will listen to the people and put this project on an urgent basis again. Nobody looks at it as a mega project, an artificial project that you do for prestige,” he told reporters after launching the YTL organised Climate Change Week 2008.
When pressed by reporters as to when he expects to get the greenlight for the project, he said: “I think the government is supportive of this project. We’ll see.”
The previous transport minister, Datuk Seri Chan Kong Choy, had said in January that the government was conducting a social impact study on the project, said to be about RM8 billion because it involves land acquisition.
“We are for it (the project),” he’d told Reuters in an interview then.
YTL’s bullet train plan involves travel time between KL and Singapore being cut to just 90 minutes compared with existing trains which take about seven hours.
Yeoh said that the bullet train project would not only save the government “tens of billion ringgit” on fuel subsidies over the long term, but would also cut down the country’s carbon emission significantly.
“This is an environment-friendly project,” he remarked.
Wednesday, April 16, 2008
A Glimpse on Futures Contracts and Forwards Contracts
Basically, they are both:
And they differs by:
The above are just summary of the characteristics. To understand more, definitely some readings are needed.
- Either Deliverable or Cash Settlement Basis.
- Priced to have Zero value at the time of contract initiation.
And they differs by:
- Futures are trade on exchanges. Forwards are private contracts and not traded.
- Futures are standardized. Forwards are customized to individual needs.
- A single clearinghouse is the counterparty for all futures contracts. Forwards are contracts with originating counterparty.
- Futures are regulated by the government. Forwards are usually not.
The above are just summary of the characteristics. To understand more, definitely some readings are needed.
Tuesday, April 15, 2008
Eddy coming from Multiple Phone Numbers?
Found a flash movie advertisement by Telekom Malaysia. Will go and buy 4 digit lottery tomorow 3339. Yeah.
TheStar.com.my and Adsense (or any other Ad Providers)
It doesn't take me long to notice TheStar.com.my, one of Malaysia premier newspapers media corporation jumped on the bandwagon of online advertising collaborations with Google Adsense. Simply put, the online media web site (Click here) designated certain area on some/all of the served web pages for the purposes for displaying advertisement from the ad provider (in this case Google Adsense).
Since TheStar is a public listed entity in KLSE Malaysia under the name of STAR PUBLICATIONS BERHAD, correct me if i'm wrong, but I think it will be a good thing if the financial statements can show what is the significance of the online advertising to the income of the company. Don't get me wrong, I'm not try to be a fussy wuss, but if you check out Alexa.com about thestar.com.my, it is a avg40 million page view per day 40 page view per million which is (40/1,000,000 * 6,602,224,175 = approx 264,000 page view per day) for thestar.com.my. I think the online ad thingy definitely contributing to the company, may it be tangible income or others.
* Population: 6,602,224,175 (July 2007 est.)
Here is the thing, since so many people (esp. Malaysian) visit the site everyday, the problem with TheStar+Adsense includes ads shown don't get regulated.
I screen captured 2 particular examples down here, they are not meant to be exhaustive, but you get the point.
1. Scam/Skim Cepat Kaya/Misleading Ads
I'm not saying that the Salary of $391.23 ad in the figure is a scam, but I also can't say that it's Not. The problem here is that any potential not legitimate contents/promotions/business models might pass through to the readers.
2. Illegal/Banned/Controlled/Violations
In this case, it is an obvious one that it violates at least few laws and regulations in Malaysia.
Even worst, if someone bought something like the Baton here and causes problem in the country, who should we blame? The weapon provider (NinjaCops.com), the weapon salesman (TheStar.com.my) or the end users?
For god sake, someone from authority please take a look on this issue.
Since TheStar is a public listed entity in KLSE Malaysia under the name of STAR PUBLICATIONS BERHAD, correct me if i'm wrong, but I think it will be a good thing if the financial statements can show what is the significance of the online advertising to the income of the company. Don't get me wrong, I'm not try to be a fussy wuss, but if you check out Alexa.com about thestar.com.my, it is a avg
* Population: 6,602,224,175 (July 2007 est.)
Here is the thing, since so many people (esp. Malaysian) visit the site everyday, the problem with TheStar+Adsense includes ads shown don't get regulated.
I screen captured 2 particular examples down here, they are not meant to be exhaustive, but you get the point.
1. Scam/Skim Cepat Kaya/Misleading Ads
I'm not saying that the Salary of $391.23 ad in the figure is a scam, but I also can't say that it's Not. The problem here is that any potential not legitimate contents/promotions/business models might pass through to the readers.
2. Illegal/Banned/Controlled/Violations
In this case, it is an obvious one that it violates at least few laws and regulations in Malaysia.
Even worst, if someone bought something like the Baton here and causes problem in the country, who should we blame? The weapon provider (NinjaCops.com), the weapon salesman (TheStar.com.my) or the end users?
For god sake, someone from authority please take a look on this issue.
Subscribe to:
Posts (Atom)