Have you ever heard anyone has something good to say about Najib? People have described Badawi as a gentleman, an amicable person, a nice guy. Even Mahathir has his admirers, people loving him for his guts and being an ultranationalist in his younger days. Najib is more like an accidental Prime Minister by default, made in ‘shotgun’ scenario. The timing of this succession was neither his choosing nor a covert takeover planned by him. In fact, timing of the handover is most unfortunate and untimely, in the midst of an unprecedented economic downturn, in a political landscape marred with domestic politics at boiling point.
With every transition of power from one leader to another, a short honeymoon period is normally accorded, giving some allowance for benefits of the doubts. Unfortunately for Najib, there won’t be any and it would be judgement from day one. This is to be expected as he has never played his hand in politics. He has not shown the public who he is and what he stood for. He was never popular in public, neither is he controversial. That’s because he chooses to remain silent or takes a low profile while he was a minister or deputy PM. During the contest between Mahathir and Razaleigh for UMNO leadership, he was described as a ‘lallang’ politician, meaning he tends to blend with the wind. Staying on the sideline seems to be his favoured mode. In reality he’s just playing safe politics.
All Malaysians know he is the son of Malaysia 2nd Prime Minister Abdul Razak. He spent 8 years in Britain to complete his law degree. So he belongs to the aristocratic class. Lately most Malaysian heard rumours relating him to the murdered Mongolian model Altantuya.
His ascension to the top will come with many obstacles and difficulties. There is great public mistrust in the government and public has very negatives opinions of the civil services. The public are also very sceptical of the Judiciary as well as public security personnel. On top of all these, a resurgent opposition led by his former colleague Anwar Ibrahim is riding on a wave of discontent. They will continuously antagonise, distract and challenge his government at every point of time. The opposition will mount pressure on him, giving him plenty of anxiety to worry for the 3 by-elections coming up soon.
Then there is also this global economic crisis that is sending Malaysia into recession. With mounting unemployment and a large young population graduating from schools, the task ahead is enormous. Its cash cow during the boom time, oil and oil palm has seen the prices collapsed.
If problem with the opposition is not enough, he has to deal with the internal politics within UMNO as well as components parties of BN. There is no end to squabbling with various parties who are expected to serve its constituency and represent its own race. Just how is he going to manage the various factions within UMNO, pacify the various UMNO wings, fairly distribute and hand out contracts to the various interested groups? How is he going to convince UMNO members who have been privileged and pampered that change and reform mean giving up material wealth. With all the fiery speeches he made about reform, he has to be careful not to allow these speeches to return to haunt him.
He too has to be mindful not to further alienate the senior politicians like Mahathir, Razaleigh and Taib. Yet he cannot be seen to take order or advice from Mahathir. That would reinforce his image as a spineless PM. Perception wise, it is critical and vital he is seen to lead, not led. He has no choice but to keep his mentor, Mahathir in check for his own survival. The opposition is just waiting for this opportunity to paint him as a weak leader and destroy him if he is led and not leading.
The new PM will also be tested on his toughness in many areas. When will it be appropriate to deploy the draconian ISA.? Will he allow peaceful demonstration? Will he tolerate the internet? What will he do to those who continue smear campaign against him and UMNO? How will he handle racial and religious disputes? With 3 by-elections around, we should have a clearer picture of the Najib.
As for international relations, he will find some relief to take a breather. Almost all neighbouring countries are just too preoccupied with their own economic and domestic problem. Unlikely anyone will have the time to interfere with Malaysia.
------------------------------------------------------------------------------------------------------------------------
Tuesday, March 31, 2009
Monday, March 30, 2009
G20, TOUGH ROAD AHEAD
George Soros lamented that G20 is the ‘last chance’ for the world to solve this global economic crisis. A well known personality even suggest that UK may need the IMF to bail her out. G20 leaders will converge in London next week and I can expect financial market will be on the edge. Failure will further erode the wafer thin confidence that temporarily held the world market stable. Most don’t expect any concrete or broadly acceptable solutions from the leaders of G20. Some form of consensus will emerge, but one has to read in between the lines, read what is not mentioned.
There is just too much disparity with regards to stimulus measures between Europe and US, between the net borrower USA and the net lender like China. There is also big difference in how to regulate the free market and financial system. Proponents of free market enterprises, especially US and UK are dead worried this meeting will lead to its slow death. As such, it is most unlikely, a comprehensive agreement or some form of MOUs on economic measures will not be adopted or a new financial architecture will ever be achieve.
The world before this crisis had predominantly been dominated by the West in the form of G7. It’s basically a white man’s club except for the pacifist, pro-American Japan. Over the years, they have set all the rule for themselves and the rest of the world to follow. Now with the entrance of non-white, there will be some uneasiness and acceptance of new members will need some time. What compound matter, is that, the old rich, G7 are the major troubled parties and the non-G7 are the net lenders. Ironically, it’s the old colonial masters now seeking assistance from its previous subjects. It hard medicine to swallow when China questions and demands how safe is their loan to US. It’s always hurtful to ask a rich country to give public assurance about its financial integrity and stability.
Furthermore, if the US and EU do accede too much of Asian’s suggestions, it does not look good especially on Barack Obama and Brown. The domestic constituency may see this as ‘kowtowing’ to non-Whites. The neo-conservatives, anti-communists, right wing groups and racist groups will be very upset.
The Chinese has also suggested creating a new reserve currency. It’s a sign of China’s nervousness and also strongly hinting that the US dollars may not be untenable for long. China concern is legitimate. It has about US$750B in US treasury bills. Everyone knows that, when the ship sinks, all the rats will run away. The US will undoubtedly disagree on this proposal. Any new reserve currency will cause an instant collapse to its already weak currency. Most East Asian countries and Singapore with colossal amount of assets invested in US will certainly be anxious. A change of reserve currency at this stage is therefore a ‘loose-loose’ situation. Decades of saving through hard work can be wiped off in a very short time.
The least that G20 can do is to provide and build confidence that the market needed badly. Big and rich countries must put down their egos and differences and acknowledge that sacrifices are needed, endure the pain, move with urgency, cooperate and row in the same direction to get out of this economic mess.
------------------------------------------------------------------------------
There is just too much disparity with regards to stimulus measures between Europe and US, between the net borrower USA and the net lender like China. There is also big difference in how to regulate the free market and financial system. Proponents of free market enterprises, especially US and UK are dead worried this meeting will lead to its slow death. As such, it is most unlikely, a comprehensive agreement or some form of MOUs on economic measures will not be adopted or a new financial architecture will ever be achieve.
The world before this crisis had predominantly been dominated by the West in the form of G7. It’s basically a white man’s club except for the pacifist, pro-American Japan. Over the years, they have set all the rule for themselves and the rest of the world to follow. Now with the entrance of non-white, there will be some uneasiness and acceptance of new members will need some time. What compound matter, is that, the old rich, G7 are the major troubled parties and the non-G7 are the net lenders. Ironically, it’s the old colonial masters now seeking assistance from its previous subjects. It hard medicine to swallow when China questions and demands how safe is their loan to US. It’s always hurtful to ask a rich country to give public assurance about its financial integrity and stability.
Furthermore, if the US and EU do accede too much of Asian’s suggestions, it does not look good especially on Barack Obama and Brown. The domestic constituency may see this as ‘kowtowing’ to non-Whites. The neo-conservatives, anti-communists, right wing groups and racist groups will be very upset.
The Chinese has also suggested creating a new reserve currency. It’s a sign of China’s nervousness and also strongly hinting that the US dollars may not be untenable for long. China concern is legitimate. It has about US$750B in US treasury bills. Everyone knows that, when the ship sinks, all the rats will run away. The US will undoubtedly disagree on this proposal. Any new reserve currency will cause an instant collapse to its already weak currency. Most East Asian countries and Singapore with colossal amount of assets invested in US will certainly be anxious. A change of reserve currency at this stage is therefore a ‘loose-loose’ situation. Decades of saving through hard work can be wiped off in a very short time.
The least that G20 can do is to provide and build confidence that the market needed badly. Big and rich countries must put down their egos and differences and acknowledge that sacrifices are needed, endure the pain, move with urgency, cooperate and row in the same direction to get out of this economic mess.
------------------------------------------------------------------------------
Sunday, March 29, 2009
CAN UMNO CHANGE???
For the past few years till the just concluded UMNO general assembly, leaders after leaders made emotional and moving speeches of the need for UMNO to CHANGE or risk the losing the next general election. The speeches are full of rhetoric and passion. The top leadership has acknowledged money politics and corruption are major problems. But none of these leaders has come up with any specific agenda or ideas.
For years, UMNO found its strength as a guardian of ‘Ketuanan Melayu’ or Malay supremacy and Malays’ special rights. The rally cries of protecting these concepts with Malays’ blood and waving the Kris has turned off many non-Malays. Since independence, politics in Malaysia has always been race-based. So for UMNO to abandon these concepts is tantamount to political suicide as it would have no platform to stand on. Let's not forget, when Najib was UMNO Youth chief, he too spoke strongly about defending Malay rights with Malay blood.
In fact, for any UMNO politician to be successful, he has to take this fiery path to defend malays' interest, demonstrate whenever malays' rights are questioned, and protest loudly so as to be seen and heard especially by fellow Malays. To take a quiet approach is seen as weakness and is unthinkable. Actions taken over the years, left unchallenged and unchecked has become a culture of UMNO politics. Such traditions are now deeply ingrained in its members. This has been the practise before May 13 and is still the practice today. Just recently, some UMNO Youth members manhandled a wheelchair bound opposition MP because he made a remark deem to have insulted a Malay ‘Sultan’.
Money politics is inevitable in any political systems. The incumbent has the monopoly to dispense business licences, development permits, building contracts and so forth. It is only human that such contracts and permit goes to the connected. Many become politicians to be included in the ‘inner circle’. Some are more unscrupulous to even buy and bribe their way to win positions. Because NEP places the Bumiputeras in an advantaged and previleged position, it becomes very lucrative for UMNO politicians to be in the government.
Kickbacks and awarding contracts to relatives are normal. At times, greed becomes too blatant to ignore. Money politics and corruption cannot be eradicated easily. It will be a herculean task and requires unyieding political muscle for the new PM to weed out all these crimes. Furthermore, this practice has been deeply entrenched in the working culture of civil services for decades.
What most UMNO leaders fail to understand is that money politics is only a minor part of the problem for the recent electoral losses. In reality, the major problem lies with UMNO being too strong and overwhelming in BN. The other component parties like MCA and MIC are observed to be subservient to UMNO. BN strength is in its multi-racial appeal. Because UMNO has ignored the sensitivities and interests of the component parties, many non-Malays have abandon MCA and MIC in drove for the opposition. Its constant bickering on controversial racial issues has cause fissures in the multi-racial coalition.
But UMNO does have its dilemma too, if it does not speak up for the Malay’s constituency, it too will lose its members to the opposition. In fact, recent poll shows that Malays are equally divided between BN and opposition. This has compelled UMNO to take a more rightist path to sooth and pacifies the feeling of the conservative Malays. Can UMNO afford to change tack to be more conciliatory to the non Malays? That will requires political maturity and political will which I think is not even in UMNO’s vocabulary yet. What I meant is ‘Malaysian Malaysia’.
Will Najib dare to make changes to Malay special rights? Will he dare to ask his member to be more civil when they demonstrate? Will Najib dare to offer all national projects to open tender for all Malaysian regardless of race? Will Najib dare to pronounce that all university places will be based on merit? Will Najib be able to weed out corruption? Of course the answer to these questions is an emphatic and resounding NO. If the answer is yes, then UMNO will cease to exist because it would have lost is relevance.
The word change is very misleading and deceptive. What change is expected? Change for the better or change for the worst or just a change of image. Sure, UMNO will change over time, just like any organisation. Of course, it can change the membership rules, its electoral process, and its organisation structure, and rewrite its ethical codes and made changes to its image. But if there are any changes, will it enhance it survivability or will it expedite its demise. Or will it be for a change for self benefit in material terms.
One must be clear what UMNO stood for, its political platform and its place in national politics. What are UMNO core values and manifestos? These core values of Malay special rights are sacred, non negotiable and untouchable. Which politician would risk stirring up a hornet nest. Let not be naive, there will be no meaningful change or reform.
-------------------------------Living to see the world--------------------------------
For years, UMNO found its strength as a guardian of ‘Ketuanan Melayu’ or Malay supremacy and Malays’ special rights. The rally cries of protecting these concepts with Malays’ blood and waving the Kris has turned off many non-Malays. Since independence, politics in Malaysia has always been race-based. So for UMNO to abandon these concepts is tantamount to political suicide as it would have no platform to stand on. Let's not forget, when Najib was UMNO Youth chief, he too spoke strongly about defending Malay rights with Malay blood.
In fact, for any UMNO politician to be successful, he has to take this fiery path to defend malays' interest, demonstrate whenever malays' rights are questioned, and protest loudly so as to be seen and heard especially by fellow Malays. To take a quiet approach is seen as weakness and is unthinkable. Actions taken over the years, left unchallenged and unchecked has become a culture of UMNO politics. Such traditions are now deeply ingrained in its members. This has been the practise before May 13 and is still the practice today. Just recently, some UMNO Youth members manhandled a wheelchair bound opposition MP because he made a remark deem to have insulted a Malay ‘Sultan’.
Money politics is inevitable in any political systems. The incumbent has the monopoly to dispense business licences, development permits, building contracts and so forth. It is only human that such contracts and permit goes to the connected. Many become politicians to be included in the ‘inner circle’. Some are more unscrupulous to even buy and bribe their way to win positions. Because NEP places the Bumiputeras in an advantaged and previleged position, it becomes very lucrative for UMNO politicians to be in the government.
Kickbacks and awarding contracts to relatives are normal. At times, greed becomes too blatant to ignore. Money politics and corruption cannot be eradicated easily. It will be a herculean task and requires unyieding political muscle for the new PM to weed out all these crimes. Furthermore, this practice has been deeply entrenched in the working culture of civil services for decades.
What most UMNO leaders fail to understand is that money politics is only a minor part of the problem for the recent electoral losses. In reality, the major problem lies with UMNO being too strong and overwhelming in BN. The other component parties like MCA and MIC are observed to be subservient to UMNO. BN strength is in its multi-racial appeal. Because UMNO has ignored the sensitivities and interests of the component parties, many non-Malays have abandon MCA and MIC in drove for the opposition. Its constant bickering on controversial racial issues has cause fissures in the multi-racial coalition.
But UMNO does have its dilemma too, if it does not speak up for the Malay’s constituency, it too will lose its members to the opposition. In fact, recent poll shows that Malays are equally divided between BN and opposition. This has compelled UMNO to take a more rightist path to sooth and pacifies the feeling of the conservative Malays. Can UMNO afford to change tack to be more conciliatory to the non Malays? That will requires political maturity and political will which I think is not even in UMNO’s vocabulary yet. What I meant is ‘Malaysian Malaysia’.
Will Najib dare to make changes to Malay special rights? Will he dare to ask his member to be more civil when they demonstrate? Will Najib dare to offer all national projects to open tender for all Malaysian regardless of race? Will Najib dare to pronounce that all university places will be based on merit? Will Najib be able to weed out corruption? Of course the answer to these questions is an emphatic and resounding NO. If the answer is yes, then UMNO will cease to exist because it would have lost is relevance.
The word change is very misleading and deceptive. What change is expected? Change for the better or change for the worst or just a change of image. Sure, UMNO will change over time, just like any organisation. Of course, it can change the membership rules, its electoral process, and its organisation structure, and rewrite its ethical codes and made changes to its image. But if there are any changes, will it enhance it survivability or will it expedite its demise. Or will it be for a change for self benefit in material terms.
One must be clear what UMNO stood for, its political platform and its place in national politics. What are UMNO core values and manifestos? These core values of Malay special rights are sacred, non negotiable and untouchable. Which politician would risk stirring up a hornet nest. Let not be naive, there will be no meaningful change or reform.
-------------------------------Living to see the world--------------------------------
Saturday, March 28, 2009
THE MALAY DILEMNA, 40 YEARS LATER
“The Malay Dilemma” authored by Mahathir about 40 years ago during his days in the political wilderness after he was sacked by Tunku. He was sacked from UMNO for rebuking the then PM for failing to resolve the Malays’ shambolic economic status.
The book dwells on the dispossession of the Malays. As an ultranationalist then, he envisioned radical concepts of Malay ownership of Malaysia. He felt that Malay tolerance and non-confrontational nature allowed them to be subjugated in their own land by other races and that the Chinese economic dominance needed to be checked and shared. He also insisted that Malay, the national language should be promoted, used and conversed by all Malaysians.
“The Malay Dilemma” later became for foundation for the New Economic Policy, popularly known as the Bumiputra Policy. In simple term, it is an affirmative action programme to improve the economic status of the indigenous Malays.
Last Sunday, while attending a Malay right- wing group Perkasa, he made a speech specifically targeting the Malay audiences. The following excerpts were taken from New Straits Times.
Today’s situation is more dangerous than the time of the British when they planned to conquer all the Malay states under the Malayan Union precept. Now, Malays cannot describe this state as a Malay state, cannot describe this state as the Malay Peninsula. Japan can be called a Japanese state, Korea as a state for Koreans, China as a state for the Chinese and India as a state for the Indians. Previously, it was possible but not now. Now Malaysia is everybody’s right but not a Malay right. The willingness of the Malays to share ownership of this country is not a little bit appreciated. The bestowing of one million citizenships by Tunku Abdul Rahman Putra to the other races is not only not appreciated but unremembered, forgotten just like that…”
Malays are said to be immigrants in their own state and other immigrants cannot be referred to as the immigrant race. If anyone does that, they have to apologise (but) nobody needs to apologise if they say Malays are an immigrant race…If Malays are not allowed to talk about their own problems, there is a possibility they will become dispossessed in their own country. This is the dangerous truth because we have seen the pressure and the contempt towards the Malays when they became a minority in a region that was once a part of the Malay states.”
He kept the strongest criticism for the Malays, he said
Malays are self-destructive. They don’t want to capitalise on opportunities presented to them. University places are not taken. Business opportunities are abused. Malay youths don’t want to study, preferring to loaf around or become Mat Rempits. The majority of Malaysians abusing drugs are Malays; the ones infected with HIV-AIDS are mostly Malays while rape and other crime cases are mainly Malays. The ones who failed in business are mostly Malays, debt delinquents are Malays, dishonoured contracts are Malays too, the AP predilection involves Malays too.........”
And it is ironic that 40 years after the book was written and Mahathir went on to become Prime Minister for 22 years, he is still talking about the Malays’ problem. They questions I beg to ask, what did he do to address the ‘dilemma’ while spending 22 years in the highest office. I can only think of a few reasons for the failure of this policy.
1. The New Economic Policy failed
2. The Prime Minister failed
3. The race failed to benefit
4. It was intended to make slow progress so UMNO can continue to champions this policy
One must not forget that Mahathir is a consummated and shrewd politician. With a new Prime Minister, he must have realised that he will be sidelined and may even be forgotten. He cares very much for his legacy in history. He is now in no position to win favours by dishing out projects and contracts. Thus it is a wise move to bring back the topic of Malays special rights to remind the Malays he still cares for their well being. This political platform had propelled him to the highest office and kept him there for 22 years.
Perhaps this is the only platform left for him to exploit the emotion of the political mass and give him some relevance.
----------------------------------------------------------------------------------
The book dwells on the dispossession of the Malays. As an ultranationalist then, he envisioned radical concepts of Malay ownership of Malaysia. He felt that Malay tolerance and non-confrontational nature allowed them to be subjugated in their own land by other races and that the Chinese economic dominance needed to be checked and shared. He also insisted that Malay, the national language should be promoted, used and conversed by all Malaysians.
“The Malay Dilemma” later became for foundation for the New Economic Policy, popularly known as the Bumiputra Policy. In simple term, it is an affirmative action programme to improve the economic status of the indigenous Malays.
Last Sunday, while attending a Malay right- wing group Perkasa, he made a speech specifically targeting the Malay audiences. The following excerpts were taken from New Straits Times.
Today’s situation is more dangerous than the time of the British when they planned to conquer all the Malay states under the Malayan Union precept. Now, Malays cannot describe this state as a Malay state, cannot describe this state as the Malay Peninsula. Japan can be called a Japanese state, Korea as a state for Koreans, China as a state for the Chinese and India as a state for the Indians. Previously, it was possible but not now. Now Malaysia is everybody’s right but not a Malay right. The willingness of the Malays to share ownership of this country is not a little bit appreciated. The bestowing of one million citizenships by Tunku Abdul Rahman Putra to the other races is not only not appreciated but unremembered, forgotten just like that…”
Malays are said to be immigrants in their own state and other immigrants cannot be referred to as the immigrant race. If anyone does that, they have to apologise (but) nobody needs to apologise if they say Malays are an immigrant race…If Malays are not allowed to talk about their own problems, there is a possibility they will become dispossessed in their own country. This is the dangerous truth because we have seen the pressure and the contempt towards the Malays when they became a minority in a region that was once a part of the Malay states.”
He kept the strongest criticism for the Malays, he said
Malays are self-destructive. They don’t want to capitalise on opportunities presented to them. University places are not taken. Business opportunities are abused. Malay youths don’t want to study, preferring to loaf around or become Mat Rempits. The majority of Malaysians abusing drugs are Malays; the ones infected with HIV-AIDS are mostly Malays while rape and other crime cases are mainly Malays. The ones who failed in business are mostly Malays, debt delinquents are Malays, dishonoured contracts are Malays too, the AP predilection involves Malays too.........”
And it is ironic that 40 years after the book was written and Mahathir went on to become Prime Minister for 22 years, he is still talking about the Malays’ problem. They questions I beg to ask, what did he do to address the ‘dilemma’ while spending 22 years in the highest office. I can only think of a few reasons for the failure of this policy.
1. The New Economic Policy failed
2. The Prime Minister failed
3. The race failed to benefit
4. It was intended to make slow progress so UMNO can continue to champions this policy
One must not forget that Mahathir is a consummated and shrewd politician. With a new Prime Minister, he must have realised that he will be sidelined and may even be forgotten. He cares very much for his legacy in history. He is now in no position to win favours by dishing out projects and contracts. Thus it is a wise move to bring back the topic of Malays special rights to remind the Malays he still cares for their well being. This political platform had propelled him to the highest office and kept him there for 22 years.
Perhaps this is the only platform left for him to exploit the emotion of the political mass and give him some relevance.
----------------------------------------------------------------------------------
Friday, March 27, 2009
NEW LEADERSHIP, END OF MAHATHIRISM
The UMNO assembly is over and a new leadership has emerged. Effectively the last of the old guards has gracefully stepped down to make way for Najib. There are couple of observations that interest me. On this blog, I will just deal with this topic.
End of ‘Mahathirism’ is now without doubt. Badawi was appointed by him to take over the reign of Malaysia when he stood down after 22 years of autocratic rule. He believes he has the moral right to criticise his hand picked successor and even insist he resigns. Now that Najib was elected, Mahathir cannot criticise Najib at liberty without adverse consequence. With his son Mukhriz losing out to Khairy, the least popular for the 3 candidates for the UMNO Youth leadership. Khairy is the son in law of Badawi and it is seen as a challenge of the 2 dynasties.
In spite of Mahathir canvassing for his son and his son still loose, this clearly signifies the waning influence of Mahathir. This defeat denies Mahathir a mouthpiece in the national political arena as well as a springboard for the junior to higher office. It is going to be very painful for a noisy man to walk away quietly; surely, he will occasionally blow some hot air to remind the public he is still around. For Mahathir, it must be very sad and frustrating to see most of the newly elected leaders carrying the legacy of their fathers who were previously prime ministers. Mahathir has failed to create his dynasty. We can expect Mahathir crying foul that Badawi’s son-in-law won the Youth leadership.
The modus operandi of Mahathir is divide- and-rule and rewarding his loyal supporters handsomely. He effectively controlled MCA and MIC and other component parties within BN and allow no dissent. He managed to keep the harmony within UMNO by dishing out all the lucrative contracts, handouts and perks to his supporters and cronies without tender. Some leftovers were given out to MCA and MIC. That has largely kept the peace and harmony within BN. After the financial crises of 1997, the economic pie has shrunk and this strategy can no longer be sustained. Money was the glue to the bond within UMNO and BN. Now that the glue was limited, so the bond becomes less adhesive.
Mahathir is an ultra nationalist who champions the Malays cause. Although he is half Indian, he took pride in calling himself Malay and even refers to his Indian father Malay. But by the Malaysia’s Constitution, he is perfectly and legally right to call himself Malay. Because of his conviction and commitment to promote and safeguard the Malays rights and Malay supremacy, he always has the backing of majority Malays in this multi-racial country. Thus UMNO prospered and his leadership was never challenged until the Asia financial crises set in, and deprived him the tools of manipulation (money and contracts). His popularity waned and with the sacking of Anwar Ibrahim, his days were numbered.
Mahathir is the master of the art of distraction and deception especially in trying times of domestic conflicts. He has honed the skill of bashing the West and also his neighbour Singapore. It made him look brave and tough in the eyes of his citizen and at the same time, deflected attention from domestic problems. His tirades against Singapore are well documented. His favourite criticism of Singapore is the way the Malays in Singapore are discriminated in our meritocratic system. Nevertheless, the Singapore leadership has never succumbed to his baits.
To be fair, Mahathir is the architect of modern Malaysia. He has successfully transformed Malaysia’s economy from an agricultural to manufacturing, built mega projects and improved the GDP by leaps and bounds. History will remembered him for bringing development to Malaysia. But history too will not forget some of his controversial education policy, undermining the judiciary, corruption within the civil services and wasteful mega-projects.
Will Najib follows the footsteps and use Mahathir time tested strategies to govern Malaysia, only time will tell. Singapore relationship with Malaysia has been rocky and turbulent under Mahathir. Since Badawi took over, Singapore has enjoyed a period of calm. Now that Najib is in the driving chair, will we see the resurgence of frictions similar to the days of Mahathir? There is always this danger of new leadership; he has to flex his muscles to demonstrate his dominance and authority. I hope he will not use Singapore, as proven by Mahathir that Singapore bashing is cost free.
And I hope Najib will not tolerate and allow the shadows and legacies of Mahathir to undermine his new administration like that of Badawi’s. Only time will be the best judge.
My next blog......"The Malay Dilemma", 40 years later
-----------------------------------living to see the world--------------------
End of ‘Mahathirism’ is now without doubt. Badawi was appointed by him to take over the reign of Malaysia when he stood down after 22 years of autocratic rule. He believes he has the moral right to criticise his hand picked successor and even insist he resigns. Now that Najib was elected, Mahathir cannot criticise Najib at liberty without adverse consequence. With his son Mukhriz losing out to Khairy, the least popular for the 3 candidates for the UMNO Youth leadership. Khairy is the son in law of Badawi and it is seen as a challenge of the 2 dynasties.
In spite of Mahathir canvassing for his son and his son still loose, this clearly signifies the waning influence of Mahathir. This defeat denies Mahathir a mouthpiece in the national political arena as well as a springboard for the junior to higher office. It is going to be very painful for a noisy man to walk away quietly; surely, he will occasionally blow some hot air to remind the public he is still around. For Mahathir, it must be very sad and frustrating to see most of the newly elected leaders carrying the legacy of their fathers who were previously prime ministers. Mahathir has failed to create his dynasty. We can expect Mahathir crying foul that Badawi’s son-in-law won the Youth leadership.
The modus operandi of Mahathir is divide- and-rule and rewarding his loyal supporters handsomely. He effectively controlled MCA and MIC and other component parties within BN and allow no dissent. He managed to keep the harmony within UMNO by dishing out all the lucrative contracts, handouts and perks to his supporters and cronies without tender. Some leftovers were given out to MCA and MIC. That has largely kept the peace and harmony within BN. After the financial crises of 1997, the economic pie has shrunk and this strategy can no longer be sustained. Money was the glue to the bond within UMNO and BN. Now that the glue was limited, so the bond becomes less adhesive.
Mahathir is an ultra nationalist who champions the Malays cause. Although he is half Indian, he took pride in calling himself Malay and even refers to his Indian father Malay. But by the Malaysia’s Constitution, he is perfectly and legally right to call himself Malay. Because of his conviction and commitment to promote and safeguard the Malays rights and Malay supremacy, he always has the backing of majority Malays in this multi-racial country. Thus UMNO prospered and his leadership was never challenged until the Asia financial crises set in, and deprived him the tools of manipulation (money and contracts). His popularity waned and with the sacking of Anwar Ibrahim, his days were numbered.
Mahathir is the master of the art of distraction and deception especially in trying times of domestic conflicts. He has honed the skill of bashing the West and also his neighbour Singapore. It made him look brave and tough in the eyes of his citizen and at the same time, deflected attention from domestic problems. His tirades against Singapore are well documented. His favourite criticism of Singapore is the way the Malays in Singapore are discriminated in our meritocratic system. Nevertheless, the Singapore leadership has never succumbed to his baits.
To be fair, Mahathir is the architect of modern Malaysia. He has successfully transformed Malaysia’s economy from an agricultural to manufacturing, built mega projects and improved the GDP by leaps and bounds. History will remembered him for bringing development to Malaysia. But history too will not forget some of his controversial education policy, undermining the judiciary, corruption within the civil services and wasteful mega-projects.
Will Najib follows the footsteps and use Mahathir time tested strategies to govern Malaysia, only time will tell. Singapore relationship with Malaysia has been rocky and turbulent under Mahathir. Since Badawi took over, Singapore has enjoyed a period of calm. Now that Najib is in the driving chair, will we see the resurgence of frictions similar to the days of Mahathir? There is always this danger of new leadership; he has to flex his muscles to demonstrate his dominance and authority. I hope he will not use Singapore, as proven by Mahathir that Singapore bashing is cost free.
And I hope Najib will not tolerate and allow the shadows and legacies of Mahathir to undermine his new administration like that of Badawi’s. Only time will be the best judge.
My next blog......"The Malay Dilemma", 40 years later
-----------------------------------living to see the world--------------------
Thursday, March 26, 2009
UMNO ELECTION AND NEW PM
Since the last general election on Mar 8 last year, politics in Malaysia had descended into theatres of dramas and circus. Every days the news are inundated with scandals, defamations,sedition charges, threats, protest, ugly demonstrations,sex videos, dead mongolian model,nudes photo, sodomy, bullets and the lists go on. There were defection of party members, parliament meeting held under rain tree, parliament members barred. Many cases were brought to the high court. Subsequently the judiciary were involved and even the sultans are embroiled in many of these domestic issues. For ordinary citizens, they must be very frustrating and confusing at a time when the country heads toward economic recession.
Today, UMNO completed its internal election. Khairy will now head UMNO Youth; Shahrizat will head the Wanita UMNO. The new deputy president will be Muhyiddin and Najib will be the president of UMNO. Effectively, this election heralded a change of guards.
The job ahead for Najib will be a very arduous one. First he needs to unify the party and clean up corruption within UMNO. Next he has to bring the component parties within BN to work together, a job that requires tremendous skill to balance the interests of the various races. The ultimate job will be to lead the country out of this recession. But with opposition headed by Anwar at his heels, it will be a herculean task to fully focus his attention on the deteriorating economy.
But how can he lead the country when many citizen has lost faith in UMNO and BN. The public see it as corrupted and disconnected with its citizenry. Najib is fully aware of this situation and for months, the top leadership has been crying out for change and reform. They know that have to or the next election will be lost.
The questions are WHAT and WHO must change? For 50 years since independence, Malaysian politics are racially-based in nature. UMNO being the major component party, rallies on the platform of Malays Special Rights and Malay supremacy. After 1969 racial riots, the Bumiputra policy came into effect. It is basically an affirmative action to help the Malays overcome the economic weakness vis-a-vis the other races. This policy was noble when first mooted but has now become a monster in that many well connected Bumiputras have abused it for personal gains. UMNO members are handed out lucrative contracts without tenders, land for development, licences and many special permits. Many UMNO members become rich this way. Many non UMNO members including Malays are left out and continue to live life of hardship. Special quotas are reserved for Bumiputra in Universities, plentiful of scholarships for overseas studies are made available to Bumiputra.
Can all the above be changed or reformed. The answer is a no brainer. It have to be NO. The reason is UMNO will dissipate if all the perks and benefits are removed.
Who dare to make the change? No smart or wise politician will. It is political suicide.
Today, UMNO completed its internal election. Khairy will now head UMNO Youth; Shahrizat will head the Wanita UMNO. The new deputy president will be Muhyiddin and Najib will be the president of UMNO. Effectively, this election heralded a change of guards.
The job ahead for Najib will be a very arduous one. First he needs to unify the party and clean up corruption within UMNO. Next he has to bring the component parties within BN to work together, a job that requires tremendous skill to balance the interests of the various races. The ultimate job will be to lead the country out of this recession. But with opposition headed by Anwar at his heels, it will be a herculean task to fully focus his attention on the deteriorating economy.
But how can he lead the country when many citizen has lost faith in UMNO and BN. The public see it as corrupted and disconnected with its citizenry. Najib is fully aware of this situation and for months, the top leadership has been crying out for change and reform. They know that have to or the next election will be lost.
The questions are WHAT and WHO must change? For 50 years since independence, Malaysian politics are racially-based in nature. UMNO being the major component party, rallies on the platform of Malays Special Rights and Malay supremacy. After 1969 racial riots, the Bumiputra policy came into effect. It is basically an affirmative action to help the Malays overcome the economic weakness vis-a-vis the other races. This policy was noble when first mooted but has now become a monster in that many well connected Bumiputras have abused it for personal gains. UMNO members are handed out lucrative contracts without tenders, land for development, licences and many special permits. Many UMNO members become rich this way. Many non UMNO members including Malays are left out and continue to live life of hardship. Special quotas are reserved for Bumiputra in Universities, plentiful of scholarships for overseas studies are made available to Bumiputra.
Can all the above be changed or reformed. The answer is a no brainer. It have to be NO. The reason is UMNO will dissipate if all the perks and benefits are removed.
Who dare to make the change? No smart or wise politician will. It is political suicide.
Saturday, March 14, 2009
G20 MUST LEAD THE WORLD NOW
In reality, the world is as diversified and polarised as ever. There are just no global leaderships after this economic crisis. The United Nations has have failed miserably. All the world institutions like World Bank and IMF, the leadership is anaemic at best. Regional groupings European Unions, APEC, ASEAN, OPEC, OECD are just too preoccupied with the problems facing its own members. And internal disagreements and squabbles can be a hindrance rather than cooperation.
G7, the most prestigious rich man club who use to dictate economic directions for the world has chosen to be silent. In a recent meeting, even the great photo opportunity of who is who was quietly forgotten. This meeting ended with a whimper with nothing solid on measures to overcome this global financial mess. It appears to me that this rich man club has surrendered it moral authority to set new standards and formulate economic strategies
As this is a crisis global in nature, there must be a global solutions and the best forum to address the failure of banking system, monetary policies, protectionism and so forth has to be defaulted to the G20.
G20 is a group of 19 countries and European Union. I checked with Wikipedia, it is
“The G-20 (more formally, the Group of Twenty Finance Ministers and Central Bank Governors) is a group of finance ministers and central bank governors from 20 economies: 19 of the world's largest national economies, plus the European Union (EU). It has also met once at heads of government level, in November 2008. Collectively, the G-20 economies comprise 90% of global gross national product, 80% of world trade (including EU intra-trade) and two-thirds of the world population.[2]
The G-20 is a forum for cooperation and consultation on matters pertaining to the international financial system. It studies, reviews, and promotes discussion among key industrial and emerging market countries of policy issues pertaining to the promotion of international financial stability, and seeks to address issues that go beyond the responsibilities of any one organization”...........Wikipedia
In Asia, the countries included are China, India, Indonesia, Japan, South Korea and Saudi Arabia. Indonesia has agreed to represent Asean. This means Singapore will be represented by our neighbour.
This meeting will be attended by all the heads of the states including Obama and Hu Jintao in London next month. The meetings of the finance ministers and Head of States will present an ideal opportunity for world leaders to implement a new financial architecture and formulate strategies acceptable to majority to overcome the current global economic meltdown. The European and American should also use this platform in improve cooperation and reduce political tensions, stop scoring political points with democratic ideals and human rights records. It has to be agreed that economic solutions and cooperation must trump over any other issues at this time and work together to overcome the global recession. It must remained focus and not distracted. Failure is not an option and consequences will be unimaginable.
Other important matters like the environment issue too have to be discussed and work out long term solutions. Security issues like terrorism, nuclear proliferation involving Iran and North Korea would have to take the back seat for the moment. The Palestinian, Sudan and Tibet problems should be discussed in another forum.
The security apparatus in London need to do a good job to keep out unnecessary demonstrations to hijack the agendas or distract the G20
participants from concentrating their effort to come out with a comprehensive solution to weather this global recession.
Let’s watch out the outcome of G20 meeting next month and let read the commentaries from major media preceding this summit.
-----------------------Living to see the world------------------------------
G7, the most prestigious rich man club who use to dictate economic directions for the world has chosen to be silent. In a recent meeting, even the great photo opportunity of who is who was quietly forgotten. This meeting ended with a whimper with nothing solid on measures to overcome this global financial mess. It appears to me that this rich man club has surrendered it moral authority to set new standards and formulate economic strategies
As this is a crisis global in nature, there must be a global solutions and the best forum to address the failure of banking system, monetary policies, protectionism and so forth has to be defaulted to the G20.
G20 is a group of 19 countries and European Union. I checked with Wikipedia, it is
“The G-20 (more formally, the Group of Twenty Finance Ministers and Central Bank Governors) is a group of finance ministers and central bank governors from 20 economies: 19 of the world's largest national economies, plus the European Union (EU). It has also met once at heads of government level, in November 2008. Collectively, the G-20 economies comprise 90% of global gross national product, 80% of world trade (including EU intra-trade) and two-thirds of the world population.[2]
The G-20 is a forum for cooperation and consultation on matters pertaining to the international financial system. It studies, reviews, and promotes discussion among key industrial and emerging market countries of policy issues pertaining to the promotion of international financial stability, and seeks to address issues that go beyond the responsibilities of any one organization”...........Wikipedia
In Asia, the countries included are China, India, Indonesia, Japan, South Korea and Saudi Arabia. Indonesia has agreed to represent Asean. This means Singapore will be represented by our neighbour.
This meeting will be attended by all the heads of the states including Obama and Hu Jintao in London next month. The meetings of the finance ministers and Head of States will present an ideal opportunity for world leaders to implement a new financial architecture and formulate strategies acceptable to majority to overcome the current global economic meltdown. The European and American should also use this platform in improve cooperation and reduce political tensions, stop scoring political points with democratic ideals and human rights records. It has to be agreed that economic solutions and cooperation must trump over any other issues at this time and work together to overcome the global recession. It must remained focus and not distracted. Failure is not an option and consequences will be unimaginable.
Other important matters like the environment issue too have to be discussed and work out long term solutions. Security issues like terrorism, nuclear proliferation involving Iran and North Korea would have to take the back seat for the moment. The Palestinian, Sudan and Tibet problems should be discussed in another forum.
The security apparatus in London need to do a good job to keep out unnecessary demonstrations to hijack the agendas or distract the G20
participants from concentrating their effort to come out with a comprehensive solution to weather this global recession.
Let’s watch out the outcome of G20 meeting next month and let read the commentaries from major media preceding this summit.
-----------------------Living to see the world------------------------------
Sunday, March 8, 2009
MEASURES FALL SHORT
Economy is not an exact science, nor simple equation of supply and demand. Policy makers have the tools and levers to manipulate and influence the outcome based on country economic fundamentals. I like to reiterate that this is an unprecedented crisis, the measures taken by policy makers may fall short. I think the major concern is how to and understand and address the change in the consumer psychology if this crisis prolongs into years.
This economic crisis will cause a tectonic shift in every country especially the US. As US consumers feel the pains of unemployment and realised the severity of the downturn, acknowledge their wasteful spending, understand the debt burden future generations have to bear, they may be just a paradigm shift in consumer psychology.They spending behavior may be permanently altered.
China has been the factory of the world for the last decade. Too much industrial capacity has come on stream too fast and any sudden drop of demand will be matched by even faster shutdown. As the consumer psychology changes in the rest of the world, China will soon learned that many of the factories shutdowns will be permanent and thus employment will be structural rather than cyclical.
Likewise, for countries like Japan, Korea and Taiwan too will have to downsize the production in automobiles, consumers’ electronics and IT related industries. The world has over consumed for the past decade. Many of the products of these countries are mainly luxury items, not basic needs. In fact many households have redundant household and electronics inventories and may not need to buy for the next few years. Under this circumstance, producers must anticipate reduced demand and adjust downward the outputs accordingly. As all these countries GDP are highly dependent on industrial productions. Thus we can expect GDP to contract in the next few years. This means higher unemployment, leading to lower purchasing power and hence drop in the standard of living.
How is Singapore affected by this crisis? My prognosis is frightful. Our GDP is highly dependable on commerce and services. With reduced industrial output and falling trades, our port, shipping lines, maritime support and related services will be adversely affected. We also highly plugged into the computer industries. Singapore produces wafer, chips and hard disks. Many of our SMEs provide industrial and service supports for these industries. In the months ahead, we will see most retrenchment in these sectors.
I have always thought our GDP this year will be negative in double digits. At least one minister has mentions -10%. And I think the world GDP has reached the peak in 2008 and will not see this peak for many years to come. It will be a long period of readjustment for every human being on this earth. There will also be a time of wealth realignment. Many rich individual will go bankrupt, some poor becomes poorer. Likewise, a country will see its wealth ranking changes. Countries also have to reprioritise their budgets, perhaps reducing spending on the military and space exploration. Many countries will have to borrow heavily to fund all the expensive stimulus measures. When they can’t get anymore fund, it just have to print money.
The years ahead will be tumultuous.
-----------------------------Living to see the world----------------------NRT
This economic crisis will cause a tectonic shift in every country especially the US. As US consumers feel the pains of unemployment and realised the severity of the downturn, acknowledge their wasteful spending, understand the debt burden future generations have to bear, they may be just a paradigm shift in consumer psychology.They spending behavior may be permanently altered.
China has been the factory of the world for the last decade. Too much industrial capacity has come on stream too fast and any sudden drop of demand will be matched by even faster shutdown. As the consumer psychology changes in the rest of the world, China will soon learned that many of the factories shutdowns will be permanent and thus employment will be structural rather than cyclical.
Likewise, for countries like Japan, Korea and Taiwan too will have to downsize the production in automobiles, consumers’ electronics and IT related industries. The world has over consumed for the past decade. Many of the products of these countries are mainly luxury items, not basic needs. In fact many households have redundant household and electronics inventories and may not need to buy for the next few years. Under this circumstance, producers must anticipate reduced demand and adjust downward the outputs accordingly. As all these countries GDP are highly dependent on industrial productions. Thus we can expect GDP to contract in the next few years. This means higher unemployment, leading to lower purchasing power and hence drop in the standard of living.
How is Singapore affected by this crisis? My prognosis is frightful. Our GDP is highly dependable on commerce and services. With reduced industrial output and falling trades, our port, shipping lines, maritime support and related services will be adversely affected. We also highly plugged into the computer industries. Singapore produces wafer, chips and hard disks. Many of our SMEs provide industrial and service supports for these industries. In the months ahead, we will see most retrenchment in these sectors.
I have always thought our GDP this year will be negative in double digits. At least one minister has mentions -10%. And I think the world GDP has reached the peak in 2008 and will not see this peak for many years to come. It will be a long period of readjustment for every human being on this earth. There will also be a time of wealth realignment. Many rich individual will go bankrupt, some poor becomes poorer. Likewise, a country will see its wealth ranking changes. Countries also have to reprioritise their budgets, perhaps reducing spending on the military and space exploration. Many countries will have to borrow heavily to fund all the expensive stimulus measures. When they can’t get anymore fund, it just have to print money.
The years ahead will be tumultuous.
-----------------------------Living to see the world----------------------NRT
ECONOMY ENTERS VICIOUS CYCLE
We now see the economic crisis entering the vicious cycle of falling demand, falling asset prices, deepening corporate losses and failures. There are more personal credit defaults and bankruptcies. This trend will continue for some time. This vicious cycle can be partially explained if one understands basic economics and the effect of “multiplier effect” by economist Maynard Keynes. I shall attempt to illustrate this using a simple example, hamburger.
If each Singapore family takes 1 hamburger a month, some 500,000 hamburgers will be consumed. We need bakers to produce the buns, farmers to produce the cows, onions, salad and tomatoes. Then you need factories to produce the sauces, carrier bags, straw and condiments. You need truck drivers, store men to support the logistics. Next you need staff to prepare, serve and clean the outlets. So, thousands of jobs are created just for this hamburgers. When these workers are paid, they have money to consume and will create more jobs. That’s how 1 hamburger per family per month can generate so many jobs and trigger off the ‘multiplier effect’.
Conversely, if no one takes hamburgers, then many jobs will be lost. This will create more jobs losses and thus the vicious cycle will continues. When jobs are lost, many will not be able to service the loans and will default. Asset price will fall, consumers sales will drop, factories will shut due to lack of demand. Thus the lack of spending will exacerbate the economic crisis.
With falling demand, from big corporations to small businesses, they have to scale down productions, reduce costs or delay capital expenditures. In many instances, factories are forced to shut down when it is no more viable. All these measures continue to hurt employment and reduce consumption.
The financial market too will be caught in this spiral due to falling profit and even losses from business. This triggers major market selloff which will put the market into a vicious cycle. In many cases, loans are recalled or ‘forced selling’ of collateral to meet loan obligation. This action triggers further fall. Many loans were not renewed and bank stop lending due to fear of default, forcing companies to suffer serious cash crunch. Lacking credit, suppliers will not sell raw material to companies, thus stopping the production cycle. Workers become redundant and retrenchment to follow.
With unemployment spiking up, the service and transport industries too will take a hit. Hotels are facing falling occupancies rate. Food and beverage outlets especially those catering to high end will suffer drop in business. Airlines too are finding it hard to fill up the seats in airplanes. Many container ship, oil tankers and bulk carriers are lying idle. With shipping rates and bulk rates dropping, owners are left with no choice but to decommission some of these ships. Likewise, airlines are parking and mothballing planes in desert. Naturally, this will lead to many job losses and retrenchment.
How to reverse this vicious cycle? Almost all the governments have aggressively addressed this problem of rapid economic contraction. Trillions of dollars has been pumped into the economy for infrastructures spending. This is supposed to increase consumption and create jobs. Some country like Taiwan even gave shopping vouchers. Some just gave money to citizens. All these are meant to boost domestic consumption. In Singapore, the government help employers to pay part of the compulsory contribution to the employees’ fund. This measure is supposed to discourage employers from retrenching workers so as to let people remain in employment.
The US is by far the most aggressive. It has spent billions in bailing out banks, auto industries and now even going to bail out homeowners who have defaulted. It has taken over insurance and mortgage companies.
It has been proven in previous economic downturns that all these measures were effective. It has been the template to boost economy and create jobs. But then again this economic crisis is unprecedented in that, the recession is global in nature. Previous crisis were all localised like the Asian financial crisis that only affect part of Asia and the dot-com crisis mainly affect the US. American economics is highly dependent on domestic consumption while the Asian economic are dependent on export. This situation is extremely disparaging. As such, Asian economy can only recover when the US begins to spend again.
Are the measures put in place enough to solve this measure, I think it falls short......my next blog.
-------------------------------Living to see the world-------------------
If each Singapore family takes 1 hamburger a month, some 500,000 hamburgers will be consumed. We need bakers to produce the buns, farmers to produce the cows, onions, salad and tomatoes. Then you need factories to produce the sauces, carrier bags, straw and condiments. You need truck drivers, store men to support the logistics. Next you need staff to prepare, serve and clean the outlets. So, thousands of jobs are created just for this hamburgers. When these workers are paid, they have money to consume and will create more jobs. That’s how 1 hamburger per family per month can generate so many jobs and trigger off the ‘multiplier effect’.
Conversely, if no one takes hamburgers, then many jobs will be lost. This will create more jobs losses and thus the vicious cycle will continues. When jobs are lost, many will not be able to service the loans and will default. Asset price will fall, consumers sales will drop, factories will shut due to lack of demand. Thus the lack of spending will exacerbate the economic crisis.
With falling demand, from big corporations to small businesses, they have to scale down productions, reduce costs or delay capital expenditures. In many instances, factories are forced to shut down when it is no more viable. All these measures continue to hurt employment and reduce consumption.
The financial market too will be caught in this spiral due to falling profit and even losses from business. This triggers major market selloff which will put the market into a vicious cycle. In many cases, loans are recalled or ‘forced selling’ of collateral to meet loan obligation. This action triggers further fall. Many loans were not renewed and bank stop lending due to fear of default, forcing companies to suffer serious cash crunch. Lacking credit, suppliers will not sell raw material to companies, thus stopping the production cycle. Workers become redundant and retrenchment to follow.
With unemployment spiking up, the service and transport industries too will take a hit. Hotels are facing falling occupancies rate. Food and beverage outlets especially those catering to high end will suffer drop in business. Airlines too are finding it hard to fill up the seats in airplanes. Many container ship, oil tankers and bulk carriers are lying idle. With shipping rates and bulk rates dropping, owners are left with no choice but to decommission some of these ships. Likewise, airlines are parking and mothballing planes in desert. Naturally, this will lead to many job losses and retrenchment.
How to reverse this vicious cycle? Almost all the governments have aggressively addressed this problem of rapid economic contraction. Trillions of dollars has been pumped into the economy for infrastructures spending. This is supposed to increase consumption and create jobs. Some country like Taiwan even gave shopping vouchers. Some just gave money to citizens. All these are meant to boost domestic consumption. In Singapore, the government help employers to pay part of the compulsory contribution to the employees’ fund. This measure is supposed to discourage employers from retrenching workers so as to let people remain in employment.
The US is by far the most aggressive. It has spent billions in bailing out banks, auto industries and now even going to bail out homeowners who have defaulted. It has taken over insurance and mortgage companies.
It has been proven in previous economic downturns that all these measures were effective. It has been the template to boost economy and create jobs. But then again this economic crisis is unprecedented in that, the recession is global in nature. Previous crisis were all localised like the Asian financial crisis that only affect part of Asia and the dot-com crisis mainly affect the US. American economics is highly dependent on domestic consumption while the Asian economic are dependent on export. This situation is extremely disparaging. As such, Asian economy can only recover when the US begins to spend again.
Are the measures put in place enough to solve this measure, I think it falls short......my next blog.
-------------------------------Living to see the world-------------------
Sunday, March 1, 2009
A MILLIONAIRE WITH SIMPLE NEEDS by Sunday Times
“A MILLIONAIRE WITH SIMPLE NEEDS” by Sunday Times financial correspondent, Lorna Tan caught my eyes and I couldn’t resist to comment on this one. The headline and the content are as different and salt and sugar.
The article centred on an interview with an ex-chairman, Felix Ong of a public listed company. It highlighted his humble beginning and “he avoids expensive restaurants and karaoke bars”. There was almost half page picture of him and his wife sitting in a convertible, sport car.
His ‘simple needs’ included ownerships of 6 properties. His home is a 7000 sq ft bungalow. And he has 6 cars, BMW L7, Mercedes SL500, 300L, BMW 320, Peugeot 126 convertible and a Mitsubishi MPV.
Either the Sunday Times correspondent standard of English is that poor and abysmal to understand two simple words ‘simple needs’ or the ethical standard of journalist has stooped so low as to use this article to mock and ridicule an arrogant and naive rich man. The headline smack of sensationalism fit for tabloid. My understanding of good journalist is they are supposed to provide the facts and the news and let readers decide. Here Lorna has already defined Felix’s life as ‘simple’. She must be totally disconnected with society especially in this tough economic time.
While the journalist may have erred on bad taste, it takes a bigger fool to use a journalist to flaunt his wealth on public media. Felix Ong should have been smarter than to place his image at the mercy of the pen. A smart successful businessman should have known better that he has no control. Perhaps it may have been intentional. If this is a means to announce that he has ‘succeeded’ and ‘arrived’, his effort in making this public ‘statement’ would have compromise his intention.
He should learn from Asia richest man, Li Ka-shing, who has lived in the same spartan house for over 30 years and donate generously to public and kept a low profile. Likewise he can take a leaf from CEO of Raffles Education, Chew Hua Seng who also came from very poor and humble background. He chooses a more noble and ingenuous way to announce his success by announcing a donation of $100million to set up a charity foundation.
Really, I don’t know who is out of reality and sense of proportion, the journalist or the rich man? This also confirmed that material wealth does not have any co-relationship with intelligence and wisdom. Maybe financial correspondent are also tabloid writer, to comply with multi-tasking or enlarge lateral responsibility in job scope during recession.
--------------------------------------------------------------------------
The article centred on an interview with an ex-chairman, Felix Ong of a public listed company. It highlighted his humble beginning and “he avoids expensive restaurants and karaoke bars”. There was almost half page picture of him and his wife sitting in a convertible, sport car.
His ‘simple needs’ included ownerships of 6 properties. His home is a 7000 sq ft bungalow. And he has 6 cars, BMW L7, Mercedes SL500, 300L, BMW 320, Peugeot 126 convertible and a Mitsubishi MPV.
Either the Sunday Times correspondent standard of English is that poor and abysmal to understand two simple words ‘simple needs’ or the ethical standard of journalist has stooped so low as to use this article to mock and ridicule an arrogant and naive rich man. The headline smack of sensationalism fit for tabloid. My understanding of good journalist is they are supposed to provide the facts and the news and let readers decide. Here Lorna has already defined Felix’s life as ‘simple’. She must be totally disconnected with society especially in this tough economic time.
While the journalist may have erred on bad taste, it takes a bigger fool to use a journalist to flaunt his wealth on public media. Felix Ong should have been smarter than to place his image at the mercy of the pen. A smart successful businessman should have known better that he has no control. Perhaps it may have been intentional. If this is a means to announce that he has ‘succeeded’ and ‘arrived’, his effort in making this public ‘statement’ would have compromise his intention.
He should learn from Asia richest man, Li Ka-shing, who has lived in the same spartan house for over 30 years and donate generously to public and kept a low profile. Likewise he can take a leaf from CEO of Raffles Education, Chew Hua Seng who also came from very poor and humble background. He chooses a more noble and ingenuous way to announce his success by announcing a donation of $100million to set up a charity foundation.
Really, I don’t know who is out of reality and sense of proportion, the journalist or the rich man? This also confirmed that material wealth does not have any co-relationship with intelligence and wisdom. Maybe financial correspondent are also tabloid writer, to comply with multi-tasking or enlarge lateral responsibility in job scope during recession.
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