Inflation is often related supply and demand and it hit us tremendously because the result is often an increase onhigher prices for all the goods that we buy.Although some economist is giving different terms and views to define inflation correctly, we as Malaysian's already feeling the pinch of it. This is even more when it comes to pensioner and daily wage earner, the phenomena is never ending.Let me give one simple example, in the year 1987 , price of Nasi lemak cost only RM0.20 cents ( Trust me) !! which is filled with egg,anchovies,Cucumber and sambals with wrapped banana leaf. But now just in 20 years the cost of the
same nasi lemak with some quality degradation cost RM1.20 . May be in 20 years of now the same nasilemak could cost RM5-6, I'm not surprised !! This had burn many malaysian's pocket. No only that with Oil price increase , per barrel cost almost USD100 !!! Price revolution certainly needed to bring the price under control. Although some measures have been taken but it is just defeat the purpose, because the payroll never increases with acceptable
percentage.
Most paper's featured headline is on Cooking Oil limitation that is affecting all of us, we're limited to 5KG per person. This will bite into many local trader's/restaurant owner's cash liquid, not forgetting Malaysian's favourite tea-break - Goreng Pisang. KFC/McD will also be affected unless their supply is coming different method. It will be the best time to reduce oily & fatty stuff in our daily intake. Although we can reduce the intake but somehow rather some parties will be certainly affected. Largely imported stuffs will also result in higher prices. As the demand exist the price will certainly hikes.
You can use the link below to see some example on Value of money in present era.http://www.westegg.com/inflation/
We must always plan for our future, whichever saving that you're undertaking ensure the returns beats the inflation. Example : Let's say you save RM10000 in Fixed Deposit, which promises you a return of 3.4% after a year, however the inflation for the year is 5%, it defeats the purpose of saving because inflation is higher than your returns. You are actually losing. When the oil price went up in year 2006, the inflations is about 5%, this also results in unemployment
and increasing crime rate.
Saturday, January 5, 2008
Saturday, July 14, 2007
Law of Seeds
Have you imagined why a winery need so much of grapes to produce quality wine ? Remember only the BEST grapes is choosen to produce a high grade wine. Take this example each grape has 3-4 seeds that needs to be replanted to produce more grapes. You might wonder why we need so many seeds just to produce few BEST ones ??? This is where the law of seeds plays in, not all the seeds will grow , some will die or even get washed away. You need to add fertilizers , water and take a good care of the grape plants to reap the fruit. Try to apply the same concept in our life, We work so hard in ourlife, we put in alot of effort, we struggle but not all our efforts are reap the success that we wanted. When this happens we will blame other’s , we will blame the world, blame god etc,etc.
Just Ponder, how nice it would be if all of us could accept the fact and continue to seed in more efforts without blaming or finger pointing ?? Why my investment must go on bear now ? Why im not making enough money ? Why my appointments got cancelled ? Why I’m not getting a high bonus ? Why this and why that ?? It is never ending. But if all us could start thinking that there is a valid reason behind all that happens, our life will be much happier . Now coming back to the Grape story ,The seeds that die or being washed away could be those that are BAD in quality , maybe even if it grows it might ended up being thrown away . Apply this principle, if something didn’t happen the way we want, let’s look at the other side of the coin and be happy with what we’re getting now, There is always cause and effect, BUT don’t ever stop seeding you might not know which seed will give you the Ultimate result that YOU are LOOKING FOR !!
We always want sunshine but if it rains, It is OK, Take a cup of hot coffe and Enjoy the serenity of MOTHER NATURE. Trust me YOU WILL LOVE YOUR DAY !
Photo taken from fotosearch.com
Just Ponder, how nice it would be if all of us could accept the fact and continue to seed in more efforts without blaming or finger pointing ?? Why my investment must go on bear now ? Why im not making enough money ? Why my appointments got cancelled ? Why I’m not getting a high bonus ? Why this and why that ?? It is never ending. But if all us could start thinking that there is a valid reason behind all that happens, our life will be much happier . Now coming back to the Grape story ,The seeds that die or being washed away could be those that are BAD in quality , maybe even if it grows it might ended up being thrown away . Apply this principle, if something didn’t happen the way we want, let’s look at the other side of the coin and be happy with what we’re getting now, There is always cause and effect, BUT don’t ever stop seeding you might not know which seed will give you the Ultimate result that YOU are LOOKING FOR !!
We always want sunshine but if it rains, It is OK, Take a cup of hot coffe and Enjoy the serenity of MOTHER NATURE. Trust me YOU WILL LOVE YOUR DAY !
Photo taken from fotosearch.com
Lazy People
Someone shared this with me :-
"When faced witha DIFFICULT TASK…give it to someone LAZY…they’ll find an EASIER way to do it!"
Im not sure how true it is, although they will find easier way to do it but it won’t be a quality job. Im a person give so much of importance when it comes to work, quality, doing it properly from the begining, adhering to proceess and procedure. If you need to go thro 8 steps to accomplish a single task, then pls go ahead but if u can do it within 6 steps.. bravo , excellent !! There is your re-engineering skills. Many people lack of this, wipe out all the red tapes, simplify process and make it easier to understand.
"When faced witha DIFFICULT TASK…give it to someone LAZY…they’ll find an EASIER way to do it!"
Im not sure how true it is, although they will find easier way to do it but it won’t be a quality job. Im a person give so much of importance when it comes to work, quality, doing it properly from the begining, adhering to proceess and procedure. If you need to go thro 8 steps to accomplish a single task, then pls go ahead but if u can do it within 6 steps.. bravo , excellent !! There is your re-engineering skills. Many people lack of this, wipe out all the red tapes, simplify process and make it easier to understand.
Truth about Hedge Funds
PENANG: After the bailout of Long-Term Capital Management (LTCM), there are news and rumours that several other hedge funds could now be in trouble and that this may pose a risk to global financial stability.
More than a year ago, Malaysia had raised the alarm and requested the IMF to review the role of hedge funds in the Asian crisis.
Due to the agency’s bias for a financial free market, however, the IMF chief defended speculation last December and the IMF secretariat in April 1998 produced a weak report largely exonerating hedge funds.
It was a wasted opportunity to limit the funds’ powers. As a result of non-action, the hedge funds have been able to continue their operations without any tighter regulations, and they are now implicated not only in the original Asian crisis but also in speculation in Hong Kong, Russia and now in the recent volatile turnaround in dollar-yen rates.
Central realities
The LTCM debacle brought to light many central realities at the heart of the global financial crisis.
One of these realities is that some hedge funds are very influential in swaying financial markets, as they specialize in intense speculation in various markets (in equity, bonds, currencies).
Their awesome power is derived from their ability to command very high leverage by borrowing up to twenty or forty times more than the value of their equity. For example, with capital of less than US$5 billion, LTCM was able to borrow up to US$200 billion.
Their command over huge financial resources enables hedge funds to have a tremendous advantage and sway over the markets. For example, they can attack currencies and stocks and cause them to depreciate sharply, more sharply than can be justified by economic fundamentals.
Indeed, hedge funds have the power to trigger financial crises that cause recession and depression of whole economies in the developing world.
Another reality is that the crash of even one highly- leveraged hedge fund has the potential to cause a meltdown of a financial system as large as that of the United States.
Finally, since hedge funds are owned by very rich and powerful individuals and institutions, their activities are guarded and defended by governments in their home countries. After all, the profits of the hedge funds’ adventures in emerging markets have benefitted the rich countries (or at least the top crust of their elites).
And when these funds themselves suffer huge losses, these governments will rush to the rescue by organizing massive bailouts. Even though the same governments preach to others that bailouts of a collapsed company must be avoided at all costs, as a cardinal market principle.
For some time already, attempts to highlight the damaging role of hedge funds had been made by a few developing countries that became victims of hedge funds and other speculative institutions.
Malaysia was first off the mark as early as August 1997, when its premier Dr Mahathir Mohamad bluntly attacked hedge funds (in particular those related to George Soros) for triggering the currency collapses in Asia.
A few months ago, the Hong Kong authorities joined in, blaming hedge funds for manipulating the local currency and stock markets, and intervened massively to beat the speculators off. Hong Kong has now joined Malaysia in campaigning to rein in and regulate the hedge funds.
But the shouts of the victim Asian countries had been ignored, even ridiculed and dismissed as figments of the imagination of leaders seeking to blame foreigners for their countries’ plight and thus deflect blame from themselves.
Today, in the wake of the LTCM debacle and mounting losses in other funds, the laughter and derision have come back full circle to haunt the hedge funds, their investors and creditors, and most of all the financial authorities of the US and other rich nations.
"Shorting" currencies
Hedge funds are a leading component of financial institutions that have speculated on the currencies of many countries. One of their main methods is to "short" a currency. Using its high leverage, the fund borrows many billions of dollars’ worth of a local currency and then sells this local currency continuously in a bid to get the currency to fall drastically.
The central bank concerned, trying desperately to maintain its currency’s level, usually has far fewer resources than a single well-leveraged hedge fund. It buys up its own currency that is being flooded in the market by the speculators and sells off its limited supply of US dollars and other foreign currencies.
Soon enough, its foreign reserves dwindle to danger levels. When the central bank is no longer able to support the local currency, it devalues sharply. The hedge fund now needs far less US dollars to repay the local currency it had borrowed, and thus it pockets a large amount in profit.Taken from : http://www.twnside.org.sg/title/rein-cn.htm
More than a year ago, Malaysia had raised the alarm and requested the IMF to review the role of hedge funds in the Asian crisis.
Due to the agency’s bias for a financial free market, however, the IMF chief defended speculation last December and the IMF secretariat in April 1998 produced a weak report largely exonerating hedge funds.
It was a wasted opportunity to limit the funds’ powers. As a result of non-action, the hedge funds have been able to continue their operations without any tighter regulations, and they are now implicated not only in the original Asian crisis but also in speculation in Hong Kong, Russia and now in the recent volatile turnaround in dollar-yen rates.
Central realities
The LTCM debacle brought to light many central realities at the heart of the global financial crisis.
One of these realities is that some hedge funds are very influential in swaying financial markets, as they specialize in intense speculation in various markets (in equity, bonds, currencies).
Their awesome power is derived from their ability to command very high leverage by borrowing up to twenty or forty times more than the value of their equity. For example, with capital of less than US$5 billion, LTCM was able to borrow up to US$200 billion.
Their command over huge financial resources enables hedge funds to have a tremendous advantage and sway over the markets. For example, they can attack currencies and stocks and cause them to depreciate sharply, more sharply than can be justified by economic fundamentals.
Indeed, hedge funds have the power to trigger financial crises that cause recession and depression of whole economies in the developing world.
Another reality is that the crash of even one highly- leveraged hedge fund has the potential to cause a meltdown of a financial system as large as that of the United States.
Finally, since hedge funds are owned by very rich and powerful individuals and institutions, their activities are guarded and defended by governments in their home countries. After all, the profits of the hedge funds’ adventures in emerging markets have benefitted the rich countries (or at least the top crust of their elites).
And when these funds themselves suffer huge losses, these governments will rush to the rescue by organizing massive bailouts. Even though the same governments preach to others that bailouts of a collapsed company must be avoided at all costs, as a cardinal market principle.
For some time already, attempts to highlight the damaging role of hedge funds had been made by a few developing countries that became victims of hedge funds and other speculative institutions.
Malaysia was first off the mark as early as August 1997, when its premier Dr Mahathir Mohamad bluntly attacked hedge funds (in particular those related to George Soros) for triggering the currency collapses in Asia.
A few months ago, the Hong Kong authorities joined in, blaming hedge funds for manipulating the local currency and stock markets, and intervened massively to beat the speculators off. Hong Kong has now joined Malaysia in campaigning to rein in and regulate the hedge funds.
But the shouts of the victim Asian countries had been ignored, even ridiculed and dismissed as figments of the imagination of leaders seeking to blame foreigners for their countries’ plight and thus deflect blame from themselves.
Today, in the wake of the LTCM debacle and mounting losses in other funds, the laughter and derision have come back full circle to haunt the hedge funds, their investors and creditors, and most of all the financial authorities of the US and other rich nations.
"Shorting" currencies
Hedge funds are a leading component of financial institutions that have speculated on the currencies of many countries. One of their main methods is to "short" a currency. Using its high leverage, the fund borrows many billions of dollars’ worth of a local currency and then sells this local currency continuously in a bid to get the currency to fall drastically.
The central bank concerned, trying desperately to maintain its currency’s level, usually has far fewer resources than a single well-leveraged hedge fund. It buys up its own currency that is being flooded in the market by the speculators and sells off its limited supply of US dollars and other foreign currencies.
Soon enough, its foreign reserves dwindle to danger levels. When the central bank is no longer able to support the local currency, it devalues sharply. The hedge fund now needs far less US dollars to repay the local currency it had borrowed, and thus it pockets a large amount in profit.Taken from : http://www.twnside.org.sg/title/rein-cn.htm
Big Biggies - Unit Trust Industry
Unit trust industry biggest in region
KUANTAN: Malaysia’s unit trust industry is the biggest among Asean countries, said Deputy Prime Minister Datuk Seri Najib Tun Razak.
He said the industry had gained a bigger market and a wider influence among the people over the past 10 years.
“The Government is confident the industry is able to register a more rapid growth with its continuous efforts to launch products for various groups,” he said.
Najib said that last year, the unit trust industry recorded an overall increase, with its net assets growing at 23.6% from RM121.8bil. Its fund management rose 29.2% to 164.4 billion units.
PNB chairman Tan Sri Ahmad Sarji Abdul Hamid, in his speech, said the Malaysian Unit Trust Week (MSAM) was an important activity for PNB as it would be able to display the institution’s ability to utilise, protect and expand the stakeholders’ investments and eventually, distribute the profits in dividends and bonuses.
KUANTAN: Malaysia’s unit trust industry is the biggest among Asean countries, said Deputy Prime Minister Datuk Seri Najib Tun Razak.
He said the industry had gained a bigger market and a wider influence among the people over the past 10 years.
“The Government is confident the industry is able to register a more rapid growth with its continuous efforts to launch products for various groups,” he said.
Najib said that last year, the unit trust industry recorded an overall increase, with its net assets growing at 23.6% from RM121.8bil. Its fund management rose 29.2% to 164.4 billion units.
PNB chairman Tan Sri Ahmad Sarji Abdul Hamid, in his speech, said the Malaysian Unit Trust Week (MSAM) was an important activity for PNB as it would be able to display the institution’s ability to utilise, protect and expand the stakeholders’ investments and eventually, distribute the profits in dividends and bonuses.
Recruitment
Yesterday after work I rushed to Pub.Mutual branch for BOP session with 2 new joiners. It was good detailed session provided by my Supervisor…learned manythings also. YESSSSS the 2 new joiners signed up as a agent under me. It is great achievement for me. I need to push my people to perform well and see them making money. Work hard to strive and achieve in a greater heights. Business with partner’s will bring greater rejoice as we have common things to talk and we walk together handholding to be success.
With investment people have nothing to lose, we help them not to lose their money in anyway. That is our objective. We want to see people making money. Save atleast 1K for start and top-up whenever you feel like doing it.
With investment people have nothing to lose, we help them not to lose their money in anyway. That is our objective. We want to see people making money. Save atleast 1K for start and top-up whenever you feel like doing it.
Why I choosed to be UTC not anything else ?
I started my IT business 3 years back, it gives some kind of good income but nevertheless we have no sufficient time to meet up with our customer’s on timely manner. We manage to secure few contracts it did earn the $$$ but timing was the main constraint.
Food Business- We secured the master license for food franchising business to open Chain stalls in all Train stations. We almost got conned tired and we put in our hardwork like crazy. After work, make appointment, meet people, talk explain about the concept. Rush back home for my tuition classes and after tht start hitting book for my MBA. Slept late and next day wakeup early as 5:30am to rush to work at 7am. Pheeewww damn tiring. This was going on for many months untill we decided to pull out, there is no sincerity between the License owner. Our profit was $ 0,000,000.00.
There was a gap for 2 years and this year I have decided to do something different. I want to secure my income in each and everyway. Being a contract worker taught me lessons in life. Don’t take life for granted. Life is not all about working, sitting at home, retire and *&^%. It is more than tht, at the end of day we must not have any regrets. We must feel that we fulfilled our duty and return to HIS hand happily. One must feel contented, rejoice and great about their achievement. I started thinking back of my investment in Pub.Mutual 1 year back, I was also approached to be a Agent but that time my confidence level was low. BINGO ….!!! I told myself that Im going to be a Agent. I called up my agent whom I invested last time and…. the rest are history. It had been 2 months since I joined, i can feel fruit of sucess ..HOWEVER I NEED TO WORK HARDER ! . And I WILL !! ONBVN
Food Business- We secured the master license for food franchising business to open Chain stalls in all Train stations. We almost got conned tired and we put in our hardwork like crazy. After work, make appointment, meet people, talk explain about the concept. Rush back home for my tuition classes and after tht start hitting book for my MBA. Slept late and next day wakeup early as 5:30am to rush to work at 7am. Pheeewww damn tiring. This was going on for many months untill we decided to pull out, there is no sincerity between the License owner. Our profit was $ 0,000,000.00.
There was a gap for 2 years and this year I have decided to do something different. I want to secure my income in each and everyway. Being a contract worker taught me lessons in life. Don’t take life for granted. Life is not all about working, sitting at home, retire and *&^%. It is more than tht, at the end of day we must not have any regrets. We must feel that we fulfilled our duty and return to HIS hand happily. One must feel contented, rejoice and great about their achievement. I started thinking back of my investment in Pub.Mutual 1 year back, I was also approached to be a Agent but that time my confidence level was low. BINGO ….!!! I told myself that Im going to be a Agent. I called up my agent whom I invested last time and…. the rest are history. It had been 2 months since I joined, i can feel fruit of sucess ..HOWEVER I NEED TO WORK HARDER ! . And I WILL !! ONBVN
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