For years now, the present Taiwanese government has been trying to dissociate itself from anything Chinese or China related. From history to language to official monuments, they try to obliterate any linkages or connections to the Chinese mainland. It is as though they really hate the Chinese.
But the reality is different. Taiwanese are investing heavily in China. They are reaping in the profits. Many of them stay in China to oversee their businesses. I don't think they hate China that much.
So, if you are born yellow, that means you are yellow. Painting yourself black or bleaching will not change that fact. In fact, it is not so so bad being a Chinaman. One quarter of the world's population is Chinese. Number means power. This will eventually prevail.
Monday, February 18, 2008
Sunday, February 10, 2008
Election gimmicks
"Come the general election, there is an unusual degree of tolerance and flexibility in matters of race, language and religion as politicians try to woo the people. Why can't it be like this every day?" Wrote WCW in The Star.
Yes, election is near and the UMNO politicians have become especially nice. Suddenly, people are granted leases to the land they have been cultivating on for years. Chinese and Tamil schools are given funds to renovate their premises. The existence of the Chinese schools is reassured. Chinese schools with low student populations are allowed to relocate to urban area where the demand is greater. The politicians come down from their high pedestal, dressed down and greet & exchange niceties with every voter.
Once the election is over, as happened before, they would become arrogant and self-serving. At their annual party assembly, their would become racists and extremists. Don't expect free lunches then.
So, it is left for the voters to decide. Do we want hypocritical politicians who used small baits to hookwink voters. Think and act correctly. The decision is important for the future of the country.
Yes, election is near and the UMNO politicians have become especially nice. Suddenly, people are granted leases to the land they have been cultivating on for years. Chinese and Tamil schools are given funds to renovate their premises. The existence of the Chinese schools is reassured. Chinese schools with low student populations are allowed to relocate to urban area where the demand is greater. The politicians come down from their high pedestal, dressed down and greet & exchange niceties with every voter.
Once the election is over, as happened before, they would become arrogant and self-serving. At their annual party assembly, their would become racists and extremists. Don't expect free lunches then.
So, it is left for the voters to decide. Do we want hypocritical politicians who used small baits to hookwink voters. Think and act correctly. The decision is important for the future of the country.
Wednesday, November 28, 2007
Unico Holdings Bhd
UHB was formed in 1984 under the auspices of the Associated Chinese Chamber of Commerce and Industry of Malaysia. Its purpose was to pool the resources of the Chinese community for investment in the country. It was supposed to be run by reputable and experienced businessmen for the benefit of the 22,000 shareholders.
It has been 23 years since its formation. There has not been much success in its investments. The only successful venture is Unico-Desa Plantations Bhd. When UDPB went public, UHB shareholders were alloted some shares. Other than the above reward, UHB shareholders have not got much returns on their investment. There is only a paltry dividend of about 5% annually to speak of.
You wonder if the directors of the company really have the interest of the shareholders at heart. They are all successful business people. Why are they not able to make a success of UHB? Are they making use of their position in UHB to advance their own interest?
Now, there is a proposal to distribute the values in UDPB to shareholders of UHB. I think it is about time. However, the people involved cannot agree on how it should be done. Law suits have even been filed against some people for slander.
I think what is of upmost importance is the well being of the shareholders. They should be rewarded the maximum possible. Directors should not be selfish and greedy. Execute the matter amicably and expeditiously. Forget about the law suits. Otherwise, this issue may make the Chinese community the laughing stock again.
It has been 23 years since its formation. There has not been much success in its investments. The only successful venture is Unico-Desa Plantations Bhd. When UDPB went public, UHB shareholders were alloted some shares. Other than the above reward, UHB shareholders have not got much returns on their investment. There is only a paltry dividend of about 5% annually to speak of.
You wonder if the directors of the company really have the interest of the shareholders at heart. They are all successful business people. Why are they not able to make a success of UHB? Are they making use of their position in UHB to advance their own interest?
Now, there is a proposal to distribute the values in UDPB to shareholders of UHB. I think it is about time. However, the people involved cannot agree on how it should be done. Law suits have even been filed against some people for slander.
I think what is of upmost importance is the well being of the shareholders. They should be rewarded the maximum possible. Directors should not be selfish and greedy. Execute the matter amicably and expeditiously. Forget about the law suits. Otherwise, this issue may make the Chinese community the laughing stock again.
Friday, September 14, 2007
Auditor-General's report
The 2005 Auditor-General's report revealed massive abuse of fiduciary authority by the civil service officials. Items were purchased at up to ten times the market price. This is a blatant waste of the tax payers' money.
Why is there such a widespread abuse of the public funds. First, we must examine the culture and mentality of the civil service. Allocations are given to each department for development and maintenance. For maintenance funds, normally no specific projects are mentioned. The warrant-holder is free to spend the money as he deems fit. By a strange twist of thinking, maintenance allocations, which are non-revotable, are thought to be wasted if not utilized by the end of the year. Hence, there will be a big rush to spend this money comes Christmas. No emphasize is place on the quality of the expenditures. All is fine as long as treasury rules are followed.
Development funds could be abused too. Even though these funds are given for specific projects, many sundry expenditures could be hiden under the projects.
The politicians always lament that the allocations given are not fully utilized. The department heads will be pressuring the officers to finish the funds. At one time, one head of department told his officers that their performance appraisal would be based on the percentage of utilization of the allocations. Again, nobody bothered about the quality of the spending.
Given the wide power the government officers possess, for the more greedy ones, a stretch of their authority could result in further abuse of the public funds. As a result, we have the cases highlighted in the AG's report.
Why is there such a widespread abuse of the public funds. First, we must examine the culture and mentality of the civil service. Allocations are given to each department for development and maintenance. For maintenance funds, normally no specific projects are mentioned. The warrant-holder is free to spend the money as he deems fit. By a strange twist of thinking, maintenance allocations, which are non-revotable, are thought to be wasted if not utilized by the end of the year. Hence, there will be a big rush to spend this money comes Christmas. No emphasize is place on the quality of the expenditures. All is fine as long as treasury rules are followed.
Development funds could be abused too. Even though these funds are given for specific projects, many sundry expenditures could be hiden under the projects.
The politicians always lament that the allocations given are not fully utilized. The department heads will be pressuring the officers to finish the funds. At one time, one head of department told his officers that their performance appraisal would be based on the percentage of utilization of the allocations. Again, nobody bothered about the quality of the spending.
Given the wide power the government officers possess, for the more greedy ones, a stretch of their authority could result in further abuse of the public funds. As a result, we have the cases highlighted in the AG's report.
Thursday, August 23, 2007
Peak oil
Crude oil price has been hovering around the US$70 level for the last three weeks. It has been over $50 a barrel for at least two year now. Whither crude price?
Experts on oil think that we have reached or are near peak oil i.e. the demand for oil outpaces production. What this means is that the day of cheap oil is over. Don't expect oil to be in the 20s and 30s range anymore.
The world is consuming about 84 milion barrels of the black stuff a day. It is expected to grow at a rate of at least 2%. No big new oil field has been found in this decade. Besides, some old fields have reached their own peak production. Hence, it would be difficult for supply to meet demand in a few years time.
What about alternatives? Alternatives like solar power, windmill, fuel cell technology and nuclear power all need oil in their construction / production. Also, oil is needed to power them. Biofuel also needs oil to produce and besides that, it is robbing the people of much needed food. Even Canada's oil sands needs oil in its extraction. It takes about half a barrel of oil to produce a barrel from the tar.
So what will happen when the supply of oil starts declining? One thing is for sure - oil price will go up further. A lot of adjustment will take place. The price of oil will reach a level where the alternatives become viable. There will be a more mixed use of energy.
Experts on oil think that we have reached or are near peak oil i.e. the demand for oil outpaces production. What this means is that the day of cheap oil is over. Don't expect oil to be in the 20s and 30s range anymore.
The world is consuming about 84 milion barrels of the black stuff a day. It is expected to grow at a rate of at least 2%. No big new oil field has been found in this decade. Besides, some old fields have reached their own peak production. Hence, it would be difficult for supply to meet demand in a few years time.
What about alternatives? Alternatives like solar power, windmill, fuel cell technology and nuclear power all need oil in their construction / production. Also, oil is needed to power them. Biofuel also needs oil to produce and besides that, it is robbing the people of much needed food. Even Canada's oil sands needs oil in its extraction. It takes about half a barrel of oil to produce a barrel from the tar.
So what will happen when the supply of oil starts declining? One thing is for sure - oil price will go up further. A lot of adjustment will take place. The price of oil will reach a level where the alternatives become viable. There will be a more mixed use of energy.
Sunday, August 19, 2007
Subprime mortgage woes
It all started with the bursting of the dotcom bubble. To stimulate the US economy, the Fed lowered its discount rate to 1.75% in 2001. That fueled investment and also comsumption. The housing market took off.
Developers were having a good time. They offered free money to purchasers for down payment. The mortgage firms were doing a roaring business. Everybody could and were buying houses - even the less credit worthy ones. Loans to this group were called subprime.
The investment firms gave the subprime mortgages a spin and created a derivative out of them called Collateralised Debt Obligations (CDO). The CDO is a leveraged instrument. This debt is then sold to hedge funds, banks and other investment houses.
The Fed increased its discount rate to 5.25% in 2004. This increased the mortgage payments. The inevitable happened. What goes up must come down. The housing market softened. Subprime borrowers started to default on their loan payments. This triggered a selldown on the CDOs. At its worst, nobody wanted the CDOs. As such, there was no market price for the instrument.
Redemption of the CDOs were stopped. Bear Stearns declared two CDOs worthless. A german bank was bailed out. This caused a world wide credit crunch. Central banks pumped in hundreds of billions to shore up liquidity.
Sentiment turned sour. The unwiding of carry trades caused a currency turmoil. Exchange rates swinged wildly. Share markets also got hit. Billions of wealth was destroyed. Everybody gets poorer. What a sad episode.
Developers were having a good time. They offered free money to purchasers for down payment. The mortgage firms were doing a roaring business. Everybody could and were buying houses - even the less credit worthy ones. Loans to this group were called subprime.
The investment firms gave the subprime mortgages a spin and created a derivative out of them called Collateralised Debt Obligations (CDO). The CDO is a leveraged instrument. This debt is then sold to hedge funds, banks and other investment houses.
The Fed increased its discount rate to 5.25% in 2004. This increased the mortgage payments. The inevitable happened. What goes up must come down. The housing market softened. Subprime borrowers started to default on their loan payments. This triggered a selldown on the CDOs. At its worst, nobody wanted the CDOs. As such, there was no market price for the instrument.
Redemption of the CDOs were stopped. Bear Stearns declared two CDOs worthless. A german bank was bailed out. This caused a world wide credit crunch. Central banks pumped in hundreds of billions to shore up liquidity.
Sentiment turned sour. The unwiding of carry trades caused a currency turmoil. Exchange rates swinged wildly. Share markets also got hit. Billions of wealth was destroyed. Everybody gets poorer. What a sad episode.
Wednesday, August 1, 2007
Wrong Watts
For years they have talked about supplying electricity from Bakun to west Malaysia. Just last month there was news of plans to set up a factory to produce the undersea cables needed to connect Bakun to the peninsula.
Suddenly, someone from SEB comes up and says that the 2400 MW Bakun would not be able to meet the energy needs of Sarawak when it is completed in 2010. Further, he thinks that Sarawak needs another 3 Bakuns by 2020.
How did everybody get the watts so wrong. Or did the situation in Sarawak changed so fast and so drastically.
In the same breath, this guy also talked about exporting electricity to Indonesia, Brunei, Sabah and yes, West Malaysia. Makes you wonder if it is just a lot of hot air.
Suddenly, someone from SEB comes up and says that the 2400 MW Bakun would not be able to meet the energy needs of Sarawak when it is completed in 2010. Further, he thinks that Sarawak needs another 3 Bakuns by 2020.
How did everybody get the watts so wrong. Or did the situation in Sarawak changed so fast and so drastically.
In the same breath, this guy also talked about exporting electricity to Indonesia, Brunei, Sabah and yes, West Malaysia. Makes you wonder if it is just a lot of hot air.
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