Hantu Laut
The government proposal to borrow from EPF to prop up the bearish KLSE may not be a good idea in view of the global economic uncertainty.Trading on the KLSE should be left to market forces.If the economy is as strong as the government have said umpteen times than its plan to intervene in the stocks market contradicts what it has been saying all this while.
Puting more money to help what it called laggard blue-chips stocks could end up good money chasing bad money.Such exercise will only invite the vultures to come back for the final killing.
If the government think RM5 billion is enough to prop the market and makes it look attractive to investors it would be in for a big shock when the the combined forces of the hedge funds decide to descend on the KLSE and raid the market , unless the government intend to lock up the shares bought by Valuecap, which would defeat the very purpose it was for, to create a bullish market. It would be back to square one, a lacklustre KLSE or money down the drain.
How the government wish to borrow from the EPF and on what terms, the Finance Minister had not made clear.The Board of EPF should not agree to giving loan to the government on private basis.The Board of Directors are trustees of the members of EPF and should work in the interest of the owners of the funds.
The most appropriate thing to do would be for the government to issue short-term bonds to EPF at higher yield than those of its normal bonds.The government should pay according to the rate of dividend currently paid to EPF holders.To pay anything less is unfair to EPF holders as the designated amount would have lost its opportunity cost.
Saving banks are one thing, saving a bad stocks market with the people's pension funds is not exactly prudent financial planning and not only does not make any economic sense, it does not make any sense at all.
Just a word of caution to the new Finance Minister to think over the negative side of the proposal. It is not too late to ditch the idea.
Wednesday, October 22, 2008
Tuesday, October 21, 2008
I wasn't Wrong
Hantu Laut
I wasn't wrong in my suspicion of the government intention to prop up the stocks market.
Below is what I wrote on 9 October, the full article here.
"Surprisingly, while all other Asian markets went down quite substantially the KLSE went down only 2.71%.Is our fundamentals really that strong and investors confidence unshaken in spite of all the bad news on the global financial markets? Is the government trying to prop up the market to avert panic selling? If that is the case how long can the government continue to do so and where are the funds coming from? Let's hope it is not our money or worse still the EPF money."
Read the article below:
I wasn't wrong in my suspicion of the government intention to prop up the stocks market.
Below is what I wrote on 9 October, the full article here.
"Surprisingly, while all other Asian markets went down quite substantially the KLSE went down only 2.71%.Is our fundamentals really that strong and investors confidence unshaken in spite of all the bad news on the global financial markets? Is the government trying to prop up the market to avert panic selling? If that is the case how long can the government continue to do so and where are the funds coming from? Let's hope it is not our money or worse still the EPF money."
Read the article below:
EPF to lend the RM5b to fund Valuecap
By Adib ZalkapliKUALA LUMPUR, Oct 21 — Finance Minister Datuk Seri Najib Razak said today the government will borrow RM5 billion from the Employees Provident Fund to fund government investment agency Valuecap Sdn Bhd.
"It's not part of the Consolidated Fund. It's a loan from EPF," said Najib.
The Deputy Prime Minister pointed out that the loan would not be part of the Budget 2009 allocations for spending announced last month.
Yesterday, Najib announced a host of measures to boost the economy and protect Malaysia from the effects of the global financial turmoil.
These included spending more on the service sector to cushion expected declines in Malaysia's exports.
Also, RM5 billion would be injected into Valuecap to buy undervalued stocks.
Valuecap was set up five years ago to invest in undervalued firms.
The government hopes the injection will offer much needed support for laggard blue-chip stocks in the local bourse.
The Finance Minister is expected to announce more measures on Nov 4 when he winds up the debate on the Budget in Parliament. Read more.......
Is the government paying good money to chase bad money.
Beware of the vultures (hedge funds) they may come back to take your money away.
Siapa Kata Malaysia Boleh ?
Hantu Laut
My streamyx has been down for 3 days now.Called TmNet twice but still no sign of the trouble being rectified or anyone turning up at my house to check whether the problem is at home.My phone line is working and I believe my payment is up to date so I can rule out that those were not the source of the problem.
The problem with this country is they take your money and provide you with crappy services and sold you 'broadband' which aren't broadband at all.If you don't pay up in time they disconnect the service without any mercy and when the service is down they don't give a damn and don't compensate you.
I lived in Singapore over 25 years ago. If you applied for a phone line it would be installed either the same day or latest the next day.If there were something wrong with your phone, likewise, you get immediate attention.If you get too many crank calls you can apply for unlisted number. It means your name is not listed on the phone directory so those sickos who masturbate over the phone and let you hear their sexual fantasy have no access to your number.We applied, our number was changed the same day.No questions asked.
Mind you! that was 25 years ago and the Internets have not been invented yet. Tell that to any Malaysian bumiputra and don't be surprised if 7 out of 10 will tell "Singapore is a small country, lah! easier to manage lah!, this lah!, that lah!. I say bullshit lah! Why don't we just learn from them and all we need to do is drive across the causeway and open our eyes,our ears and our screwed up brains and say that this is what we want for our country.
We returned to Malaysia in the early nineties and lived in Taman Duta and guess what, it took almost a month before our phone was connected and to cut the story short we did get crank calls every now and then and so naturally we asked Telecom for unlisted number and guess what we were told "Encik, minta maaf yah! itu unlisted number kami reserve hanya untuk VIP" Great! no point arguing with this kind of stupid policy.Might as well forget it and accept the fact that we are back in our beloved country--- 'Malaysia Boleh'
I was in Kuala Lumpur two weeks ago and stayed five minutes walk from the KLCC, in the deep commercial hub of the city.The hotel provided one free so-called 'broadband' connection.If anything that can ruin my whole day it would be what I called 'unexpected disappointment'.The bloody streamyx was worse than the one I have at home in Sabah and mind you that was in the heart of Kuala Lumpur.
I say to TMNet and Telecom Malaysia take your money and put it in where your mouth is.
This article is posted using public wi-fi.My streamyx is still out.
My streamyx has been down for 3 days now.Called TmNet twice but still no sign of the trouble being rectified or anyone turning up at my house to check whether the problem is at home.My phone line is working and I believe my payment is up to date so I can rule out that those were not the source of the problem.
The problem with this country is they take your money and provide you with crappy services and sold you 'broadband' which aren't broadband at all.If you don't pay up in time they disconnect the service without any mercy and when the service is down they don't give a damn and don't compensate you.
I lived in Singapore over 25 years ago. If you applied for a phone line it would be installed either the same day or latest the next day.If there were something wrong with your phone, likewise, you get immediate attention.If you get too many crank calls you can apply for unlisted number. It means your name is not listed on the phone directory so those sickos who masturbate over the phone and let you hear their sexual fantasy have no access to your number.We applied, our number was changed the same day.No questions asked.
Mind you! that was 25 years ago and the Internets have not been invented yet. Tell that to any Malaysian bumiputra and don't be surprised if 7 out of 10 will tell "Singapore is a small country, lah! easier to manage lah!, this lah!, that lah!. I say bullshit lah! Why don't we just learn from them and all we need to do is drive across the causeway and open our eyes,our ears and our screwed up brains and say that this is what we want for our country.
We returned to Malaysia in the early nineties and lived in Taman Duta and guess what, it took almost a month before our phone was connected and to cut the story short we did get crank calls every now and then and so naturally we asked Telecom for unlisted number and guess what we were told "Encik, minta maaf yah! itu unlisted number kami reserve hanya untuk VIP" Great! no point arguing with this kind of stupid policy.Might as well forget it and accept the fact that we are back in our beloved country--- 'Malaysia Boleh'
I was in Kuala Lumpur two weeks ago and stayed five minutes walk from the KLCC, in the deep commercial hub of the city.The hotel provided one free so-called 'broadband' connection.If anything that can ruin my whole day it would be what I called 'unexpected disappointment'.The bloody streamyx was worse than the one I have at home in Sabah and mind you that was in the heart of Kuala Lumpur.
I say to TMNet and Telecom Malaysia take your money and put it in where your mouth is.
This article is posted using public wi-fi.My streamyx is still out.
Monday, October 20, 2008
Lim Kit Siang:Incessant Barking
Hantu Laut
They have taken the meaning of their roles literally in every sense of the word and opposed for the sake of opposing.More often then not some of them acted like a bunch of spoilt brats making incomprehensible and useless noises that have no constructive contributions to the betterment of society and the nation.They are all noises but no punches.
The rumoured appointment of the next Chief Justice was a case which didn't merit any controversy but yet the oppositions, for the sake of making noises, were critical and condemned the choice of Tan Sri Zaki Azmi just because he was an ex-legal adviser to UMNO.Zaki have yet to be officially appointed to the post.
The most vocal critic is the head honco of DAP, the iriscible and self-opinionated Mr Lim Kit Siang who have never found a drop of goodness in the government since time immemorial.He is also the loudest and noisiest vessel in Parliament.A man who sees evil lurking in every nook and cranny of government.A man drowning in his own false dogmas of morality.
The nomination of names are the prerogative of the Prime Minister who would submit the names to the Agong, who, in consultation with the Conference of Rulers would than give his royal assent to the appointment.The final choice lies with the Agong and Conference of Rulers, not the Prime Minister.
There is nothing illegal or constitutionally wrong in the appointment of the Chief Justice or for that matter of all the judges for all the courts in the country.The vetting and selection process have gone through sufficient filtering and the appointment is in accordance with Article 122B of the Constitution.
From the Prime Minister to the Agong, to the Conference of Rulers and back to the Agong.Isn't that more than sufficient.To question the choice is showing disrespect for the Agong and the Conference of Rulers.
With his usual rhetoric and opposition to anything and everything he has put the cart before the horse and questioned albeit indirectly the competency of the Agong and Conference of Rulers in their decision making.
Below is part of what he wrote in his blog.
"This is not only not so, the Prime Minister has shown utter disregard and contempt for the widespread objections of the legal community and civil society to the appointment of the first Umno Chief Justice in the 51-year history of the nation!
They have taken the meaning of their roles literally in every sense of the word and opposed for the sake of opposing.More often then not some of them acted like a bunch of spoilt brats making incomprehensible and useless noises that have no constructive contributions to the betterment of society and the nation.They are all noises but no punches.
The rumoured appointment of the next Chief Justice was a case which didn't merit any controversy but yet the oppositions, for the sake of making noises, were critical and condemned the choice of Tan Sri Zaki Azmi just because he was an ex-legal adviser to UMNO.Zaki have yet to be officially appointed to the post.
The most vocal critic is the head honco of DAP, the iriscible and self-opinionated Mr Lim Kit Siang who have never found a drop of goodness in the government since time immemorial.He is also the loudest and noisiest vessel in Parliament.A man who sees evil lurking in every nook and cranny of government.A man drowning in his own false dogmas of morality.
The nomination of names are the prerogative of the Prime Minister who would submit the names to the Agong, who, in consultation with the Conference of Rulers would than give his royal assent to the appointment.The final choice lies with the Agong and Conference of Rulers, not the Prime Minister.
There is nothing illegal or constitutionally wrong in the appointment of the Chief Justice or for that matter of all the judges for all the courts in the country.The vetting and selection process have gone through sufficient filtering and the appointment is in accordance with Article 122B of the Constitution.
From the Prime Minister to the Agong, to the Conference of Rulers and back to the Agong.Isn't that more than sufficient.To question the choice is showing disrespect for the Agong and the Conference of Rulers.
With his usual rhetoric and opposition to anything and everything he has put the cart before the horse and questioned albeit indirectly the competency of the Agong and Conference of Rulers in their decision making.
Below is part of what he wrote in his blog.
"This is not only not so, the Prime Minister has shown utter disregard and contempt for the widespread objections of the legal community and civil society to the appointment of the first Umno Chief Justice in the 51-year history of the nation!
In the circumstances, it is most regrettable and deplorable that Abdullah had stuck to his guns that Zaki be appointed the new Chief Justice, despite being forewarned that it would plunge the country into a new judicial crisis of confidence and a new era of judicial darkness.
Is Zaki capable of providing the necessary judicial leadership to ensure that Malaysia can rise above the past two decades of judicial darkness, plunging from one judicial scandal and crisis of confidence to another, and which reduced the Malaysian judiciary from its previous high international standing into a laughing stock for lack of independence, impartiality and integrity of the judiciary?
Pakatan Rakyat MPs must now decide whether to invoke Article 127 of the Malaysian Constitution which empowers the tabling in Parliament a substantive motion to debate the suitability and the merits/demerits of Zaki as the new Chief Justice provided it has the support of at t least a quarter of the Members of Parliament, i.e. 55 MPs.
If such a substantive motion is presented in Parliament, it would be the first time in Malaysian parliamentary and constitutional history."
The system of appointment of our Chief Justice and judges of the various courts in the country is better than that of the US.In the US the President nominates the name and the Senate approves it.In the UK, the Lord Chancellor similarly was appointed by the monarch upon the advice of the Prime Minister.
Lim Kit Siang talk of invoking Article 127 of the Malaysian Constitution is a disrespect for the Agong and the Malay rulers.His prejudgement that the man is already guilty even before the commission of the crime is I would say most unbecoming of him as a veteran politician.
I believe the the invocation of Article 127 is appropriate and makes more sense to call for substantive motion to discuss the behaviour of an errant Chief Justice or judges who were already on the job and has committed serious breach of judicial duties or some other criminal act.Lim is putting the cart before the horse.
How does he know that Zaki is going to be a bad judge? Who says there is widespread objections from the legal community and civil society? Has Lim done a reliable public opinion polls to claim the truth of his allegations.Why must the government listen to the Bar Council when they have shown partiality and bias against the government?
The government is duly elected by the people and it is absurd and a mockery of the democratic system if it has to consult every lawyers in town or the people, every now and then, before making any decision.What's the point of having elections ?
Obviously, empty vessel makes the loudest noise.
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