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2014年11月14日星期五

10 Most Popular Graduate Employers In Malaysia

SHARON TANG

NOV. 14, 2014

Banking and financial services firms as well as accounting companies topped this year’s ranking of Malaysia’s 100 Leading Graduate Employers.

Lenders Maybank and CIMB Group, and Malaysia’s central bank took three out of the top 10 spots, while Ernst & Young and PricewaterhouseCoopers claimed two.

It was quite a tumble for PricewaterhouseCoopers — the accounting firm fell from the number one spot last year to number 8.

Meanwhile, beleaguered Malaysia Airlines, despite its turmoil, also made it into the top 10, climbing four spots from 13th last year to number 9.

The ranking was compiled from a survey of over 14,000 university students.

Here’s a look at the top ten.

2014年9月15日星期一

Malaysia Isolates Possible Ebola Patient

SHARON TANG

SEP. 15, 2014

CDC/Cynthia Goldsmith via Wikimedia Commons

A hospital in Kuching, Sarawak has isolated a Zimbabwean university student who may have contracted Ebola.

The 24-year-old, who had recently come into contact with students from Nigeria, reported himself to a local specialist centre over the weekend complaining of coughing and fever.

Doctors referred him to the Sarawak General Hospital, which has placed him under observation.

He is the nation’s second suspected case of Ebola.

Malaysia’s first suspected case was reported in Perak last week. He has been cleared of the much-feared virus.

The Ebola outbreak is threatening to surge out of control, having claimed over 2,000 lives across Liberia, Sierra Leone and Nigeria.

However, its numbers cannot compared with deaths caused by mosquito-borne diseases — dengue for instance kills about 20,000 people each year.

In dengue-endemic Malaysia, the disease has killed over 130 people and infected some 68,000 people so far this year.

2014年9月8日星期一

Will Bitcoin Be A Game Changer For Consumers In Malaysia?

CONTRIBUTOR

SEP. 8, 2014

When it comes to Bitcoin, there are three groups of people: people who believe in it, people who don’t and people who believe in it until things don’t go according to plan.

Bitcoin is a virtual currency that is unregulated by any central bank or government, but still works for purchasing goods and services from retailers willing to accept it. Bitcoins, which are created when they are “mined” or generated by computers, also trade on an open market that fluctuates much like a stock market.

The bad publicity that Bitcoin has received previously which saw the value of the currency take a sharp plunge (with many investors quickly dropping it) did not deter Arsyan Ismail, the founder of 1337 Tech Sdn Bhd, and an early adopter of Bitcoin in Malaysia from using and advocating the crypto-currency.

“For most people who do not understand how Bitcoin really works and the potential it poses, their first experience with Bitcoin is really important. It forms their expectation of whether it is something they are willing to adopt or invest further in,” said Ismail, on Malaysians and Bitcoin.

The Malaysian invasion

With the first petrol station in Malaysia accepting Bitcoin, it is hard to continue to ignore the fact that it is becoming another valid payment channel.

In March, Singapore-based payment transaction provider Numoni Pte Ltd introduced the first-ever Bitcoin Auto Vending Machines (AVM) in Malaysia in Bangsar Shopping Centre in Kuala Lumpur and Gurney Plaza in Penang to cater to the fast-growing demand for Bitcoin.

Ismail and his team at 1337 Tech have been working to promote the usage of Bitcoin, for users, merchants and also investors through BeliBitcoin.com, a Bitcoin trading platform, BitRinggit.com, a platform to cash out your Bitcoin, BitPos.my, a Point of Sale (POS) system for merchants, and CryptoMarket.my, a marketplace to buy and sell products using Bitcoin.

“To increase the number of merchants accepting Bitcoin, we are currently offering a free tablet for the merchants. The merchants must have Wi-Fi at their shop to be able to do the transaction in Bitcoin,” explained Ismail, adding that he foresees more merchants accepting the currency as a payment option soon.

What’s in it for me?

Why would anyone opt for Bitcoin when they can easily buy something with a credit card? Firstly, there is no interest charges on your purchases. It is like using cash, except that it safer and faster.

“With the crime rate increasing, consumers are feeling less confident about bring too much cash out, and using credit card means incurring interest charges if they missed a payment. Bitcoin becomes the better option, considering those factors,” said Ismail, adding that Bitcoin makes it easier to track one’s expenses as everything is recorded online.

For merchants, why would you not offer as many ways as possible for your customer to pay you? Furthermore, you don’t need to keep too much cash at the shop, with the risk of robbery, this makes accepting Bitcoin a smart move, especially when the merchant is selling big ticket items.

“Once a Bitcoin transaction is done, it cannot be reversed or be stolen. It goes directly to you and you can monitor it while you’re away, perfect for merchant who may not be stationed at the retail store all the time,” added Ismail.

On paper, Bitcoin is the ideal payment option as it does not succumb to currency inflation. No one in this world can print “new” Bitcoin out of the 21 million fixed amount available in the world.

However, as in most parts of the world, Bitcoin is not (yet?) recognised by the central bank. Bank Negara Malaysia released a statement on January 2, 2014, stating that Bitcoin is neither recognised as legal tender in Malaysia nor regulated.

The statement ends with a precaution for the public to be cautious of the risks associated with the usage of the digital currency.

“At the moment, Bitcoin is freely used and traded among early adopters in Malaysia. When it becomes more popular in awareness and usage, then it will most probably be assessed by the authorities in Malaysia.

“I would think that the regulation of Bitcoin then will follow other countries, where it is treated as an asset. And taxes will be similar to Real Property Gains Tax (RPGT),” opined Ismail, adding that transactions will most probably be subjected to auditing and Goods and Services Tax (GST) once the authorities start recognising Bitcoin.

What’s the future of Bitcoin?

Some people compare the invention of Bitcoin with the invention of the computer and even the Internet. However, there have been other ideas like Crypto Currencies 2.0 and Alternate Coins (AltCoins) being talked about to replace Bitcoin as they address the problems that Bitcoin face. None of these “ideas” have materialised yet.

Like any other new investment, the early adopters will reap the most benefits if the investments become successful. Malaysians can still get into the game by buying a Bitcoin Top-up Card online that ranges from RM10 to RM1,000.

“Though Bitcoin has had five years head start, it is still not perfect. Let’s see how it pans out,” said Ismail.

* At the time of writing, 1 Bitcoin is equivalent to RM1,613.63.

2014年7月28日星期一

Will Malaysia Rise From The Property Humdrum Of 2014

CONTRIBUTOR

JUL. 28, 2014

Recently the International Monetary Fund (IMF) has said that house prices in many countries are still well above their historical average relative to income and rent. Malaysia like some of these countries has seen a rapid increase in property prices over the past four to five years with the excessive speculation in the property market driving property prices to an artificially high level. However, the property market is still resilient and with the market cooling measures introduced by the Government last year, the market will correct itself and see growth in the coming years.

According to the Knight Frank Global House Price Index, released earlier, it shows that while Malaysia’s housing prices have risen by 8% in the first three months of 2014 (1Q14) compared to the previous corresponding period last year where the rate of growth had slowed down.

Continued Growth

The first half of 2014 has been relatively quiet as predicted earlier, as the property market has been absorbing the market cooling measures.

Siva Shankar, President of the Malaysian Institute of Estate Agents (MIEA), explains, “2012 and 2013 saw a 6% to 7 % drop in transactions in the market and that this downwards slide will reduce, making next year (2015) somewhat flattish and there on continue to rise upwards slowly beyond 2016 and 2017. The market appears to be self-correcting slowly.”

Generally prices for properties with good infrastructure and amenities will continue to climb however, transactions for condominiums will drop slightly as well as the rental market due to oversupply, but this is seen to be only a short term effect.

BNM Rulings Taking Effect

The Bank Negara Malaysia (BNM) rulings announced last year are taking effect causing banks to be more cautious in their loan criteria and to tighten property financing to buyers. Therefore, buyers are seeing up to 60% to 70% in rejection rate at the first instance of application.

According to BNM’s Monthly Statistical Bulletin for March 2014, in 1Q14, some RM25.4 billion in property loans were approved from RM47.6 billion applied for, translating into a 46.6% rejection rate in terms of loans value. In comparison, 1Q13 saw higher rejection rate at 54.6%.

However some markets like Kuala Lumpur and Selangor are seeing less overall transactions yet higher total transacted value. This marks a trend that reflects the nationwide property market trend — total number of transactions dropping but an increased transaction values for the past three years, based on the annual Property Market Reports published by the National Property Information Centre (Napic), Ministry of Finance.

Growing Interest in Secondary Market

Interest has peaked in the secondary market as the primary market slows down due to the cooling measures. Developers are also holding back their launches amid weaker market sentiment and revisiting their development plans to cater to current market demands and trends. Currently the secondary market is becoming slightly more active and prices in select locations are now looking relatively attractive. Buyers, are now turning their attention to this secondary or sub sale market, though there is hefty down payment and higher costs to acquire these properties their prices are still comparatively lower than newer launches. In other words there is a shortage of supply for secondary properties making it attractive in terms of capital appreciation.

Speculative Buyers a Threat to the Market

The most worrisome factors for the market are the speculative short term thinking investors. These are speculators who bought directly from developers with the intention of flipping when the property is ready.

However, with the new ruling where a 30 % real property gains tax (RPGT) is being implemented on first year disposals as well as an oversupply, it seem that it is them who are now at risk as they have no holding power. They will try to dispose their properties either at a lower price or try to rent it out, in either case they will be competing with others in the same location, creating a price war.

In the worst case scenario they cannot afford to pay their mortgage instalments and the banks are forced to auction off their properties, affecting the industry to a certain extent. Serious investors won’t be worried as they usually plan for between three to 10 years, hence they have holding power and will not face such problems.

Overall Market Sentiments

Overall investors’ sentiments looks to be very cautious; some share the feeling that this year is not a good year to invest or buy properties as there are too many uncertainties and are taking a wait-and-see attitude. On the up side, generally the property market looks to be stable, and will continue to grow as it has proven itself resilient and there is a constant demand for properties.

Zulhilmi Ghouse is the editor of Prospek Hartanah Malaysia, the premier property and business magazine in Bahasa Melayu. He started his career as a writer for Property Insight Magazine and has been involved in the property industry for the past year. Prior to that, he was a freelance translator, having worked on several book translation projects ranging from fantasy to politics and religion.

Source: iMoney

2014年7月17日星期四

Russia Media: A Malaysian Passenger Plane Crashed In Ukraine-Russia Border

BUSINESS INSIDER

JUL. 18, 2014, 5:13 AM

YouTube

A Boeing 777 Malaysian airlines crashed in Ukraine near the Russian border, Interfax is reporting, citing “a source in the aviation circles.”

“Boeing Malaysian airlines operate flights to Amsterdam — Kuala Lumpur for 50 miles before entering the airspace of Russia, began to decline, he was subsequently found burning on the ground in Ukraine,” the source said, adding that 280 passengers and 15 crew members were onboard.

Military expert Dmitry Tymchuk says the Malaysia Airlines plane crashed to the north of Torez in the Donetsk region, according to Ukrainian journalist Myroslava.

The area is controlled by pro-Russian separatists who are fighting the Ukrainian army.

On July 8, the State Aviation Administration of Ukraine closed the airspace to civilian aircraft after a military transport plane was shot down.

The aircraft reportedly had to cross the Russian border at about 9:30 EDT.

Ukrainian activists tweeted a map where they say

Google Maps

2014年7月8日星期二

Will Malaysia Rise From The Property Humdrum Of 2014?

CONTRIBUTOR FINANCE JUL. 8, 2014, 6:05 PM

Continued Growth

The first half of 2014 has been relatively quiet as predicted earlier, as the property market has been absorbing the market cooling measures.

BNM Rulings Taking Effect

Growing Interest in Secondary Market

Speculative Buyers a Threat to the Market

Overall Market Sentiments

Source: iMoney

2013年3月5日星期二

06 Mar 2013 Veteran Filipino Rebels Sailing to Malaysia -MNLF

MANILA (AFP)--Filipino Islamic guerrilla reinforcements have sailed for Sabah in Malaysian Borneo, one of their leaders said Wednesday.

The fighters will support their compatriots following Jamalul Kiram III engaged in a three-week standoff with Malaysian security forces. Mr. Kiram, 74, claims to be the sultan of Sulu on Borneo. His followers are trying to reclaim the land.

The unknown number of guerrillas are veterans of the Moro National Liberation Front.

"Many have slipped through the security forces. They know the area like the back of their hands because they trained there in the past," leader Muhajab Hashim said.

"MNLF fighters are adherents of the sultan; we are followers. So there is more than an alliance," he said. "We feel very strongly against the attacks against our brothers from Sulu." The MNLF hasn't officially told the guerrilla's to go but it fully supports the sultan reclaiming the Malaysian state.

"We are expecting more of them to join even if our official instruction is for them to refrain from going," Mr. Hashim said.

Malaysia and the Philippines have established naval cordons to try and stop guerrillas sailing to Sabah.

Malaysia launched an air and land offensive on Tuesday to end the conflict. However, the sultan's aides said in Manila as many as 300 militants had escaped Tuesday's attacks.

The Sulu sultanate's power faded about a century ago but it has continued to receive nominal Malaysian payments for Sabah under a lease deal inherited from European colonial powers.

2012年10月8日星期一

IMF Says China, Malaysia, Thailand's Currencies are Undervalued

08 Oct 2012 22:30

SINGAPORE--China, Malaysia and Thailand's currencies are undervalued relative to the economies' medium-term fundamentals, and the countries in question should focus on fiscal policy to support growth, the International Monetary Fund said Tuesday.

In its World Economic Outlook, the IMF found that while foreign exchange movements since the global financial crisis had been consistent with demand rebalancing, gains in currencies of nations with external surpluses had halted over the past eight months.

It warned that continued accumulation of international reserves was contributing to global imbalances and associated weaknesses, and said these were likely to remain above desirable levels in the absence of decisive action by governments.

"It must be emphasized that the policies that would most effectively lower global imbalances and related vulnerabilities serve the self-interests of the countries concerned, even when considered purely from a domestic viewpoint," the IMF said.

While countries with external deficits may need strong medium-term fiscal consolidation programs, "the requirements for emerging market economies with external surpluses and undervalued currencies are to cut back official reserve accumulation, adopt more market-determined exchange systems, and implement structural reforms, for example, to broaden the social safety net."

The current accounts of many Asian nations, including China, Malaysia, Singapore, South Korea and Thailand, are stronger and the currencies weaker than they would be with a more desirable set of policies, the IMF said, adding that several of them have very large official reserves or internal distortions that curb consumption.

While inflation rates in emerging Asia have been low or falling, in China and India credit has expanded rapidly, and in Indonesia and to some extent Malaysia, credit growth is still quick, with property prices also booming in some of those markets. In addition, China, Malaysia and Thailand's currencies are undervalued relative to the countries' medium-term fundamentals, the IMF said.

"Considering this credit and exchange rate picture, these countries should wait and see or consider modest further easing of monetary policy stances and rely mainly on fiscal policy to support demand," the IMF said. "Those with less fiscal space could proceed to more monetary easing, provided macroprudential measures keep credit growth in check."

The fund advised India and Vietnam not to loosen monetary policy in the absence of fiscal tightening steps to cool domestic demand. In both countries, as well as Japan, credible fiscal consolidation should be a policy priority, it said.

The IMF tips gross domestic product in developing Asia to grow 6.7% this year in inflation-adjusted terms, picking up to 7.2% in 2013, 0.4 percentage point and 0.3 point weaker than its July forecasts.

In China, it expects growth of 7.8% in 2012 and 8.2% in 2013, with both forecasts being 0.2 point weaker than the IMF's July view.

2012年9月6日星期四

Malaysia Summons German Envoy Over NGO Funding

07 Sep 2012

KUALA LUMPUR (AFP)--Malaysia has summoned Germany's ambassador after the embassy reportedly funded an opposition-leaning human rights organization that has accused the government of corruption.

The group, Suaram, launched a complaint in a French court earlier this year accusing Prime Minister Najib Razak and others over a 2002 deal to buy two submarines from France.

"The action of the German embassy can be misconstrued and be seen as interference in the domestic affairs of a sovereign state," the Foreign Ministry said in a statement late Thursday.

"Malaysia is deeply disappointed to learn that the embassy is engaged in such activities that show its partiality to certain issues that have implications on Malaysia's domestic situation."

The embassy declined to make an immediate comment Friday. But German Ambassador Guenter Gruber was quoted by the national news agency Bernama earlier this week as saying that the funding was for a one-off project in 2010.

Suaram, whose accounts are being investigated by authorities, has accused the government of harassment after it alleged corruption during the purchase of the two Scorpene submarines while Mr. Najib was defense minister.

"This ongoing political intimidation and harassment against Suaram is proof that the government is determined to silent critical voices," Suaram said in a statement on Wednesday.

Mr. Najib, who must face elections by the middle of next year, has been touting a reform agenda, including scrapping a strict security law that allowed for indefinite detention without trial.

But critics have dismissed his reforms as an insincere ploy to win back support after the 2008 elections, when the Barisan Nasional coalition lost its customary two-thirds parliamentary majority in its worst showing ever.

2012年8月29日星期三

Malaysia Unlikely To Be Stuck In Middle-Income Trap-CE

30 Aug 2012

Structural problems and sluggish global growth will probably cause Malaysia to miss its aim of maturing into a high-income economy by 2020, but there is little reason to think the country is stuck in a "middle income trap," says Capital Economics in a report.

It tips Malaysia's economy as likely to expand 4.5% annually through 2020, powered by strong investments under its Economic Transformation Program, which will still leave the South East Asian country a tad shy from attaining its decade-end goal. Malaysia's gross national income per person was $8400 last year, well below the $12,500 threshold for high-income status as defined by the World Bank.

However, its low incremental capital output ratio, one of the lowest in Asia, suggests that there is room to boost growth via higher investments.

2012年8月15日星期三

Malaysia 2Q GDP Growth Beats Estimates, Rate Pause Likely

15 Aug 2012

--Malaysia's second-quarter GDP rises 5.4% on year, beating market forecast

--Domestic demand to support growth going forward, says central bank governor

--Prevailing policy rate remains appropriate, governor says

(adds analyst comment in sixth-seventh paragraph, central bank governor's comments in fifth, ninth and 13th-15th paragraphs, inflation data in 12th paragraph)

By Abhrajit Gangopadhyay

KUALA LUMPUR--Malaysia's economy grew by 5.4% in the second quarter from a year earlier, topping market expectations and reflecting robust domestic investment and consumption that offset tepid demand for its exports.

The data underscores the resilience of Southeast Asian economies with large domestic markets in the face of weaker demand for their products while key markets such as the U.S., Europe and China struggle with slowing growth and debt problems. Earlier this month, Indonesia reported a better-than-expected 6.4% growth in the second quarter, also driven by strong domestic demand.

In the three months ended June, Southeast Asia's third-largest economy grew at a faster pace than the 4.9% expansion in the first quarter and well ahead of the 4.6% median forecast of 19 economists polled by Dow Jones Newswires.

Ahead of elections expected by early next year, the government has undertaken populist spending, including higher wages for civil servants and cash handouts to the thousands of low-income population, that has helped spur consumption, keeping local demand firm in an economy that heavily relies on exports to power growth. The government's heavy spending to develop the country's infrastructure under its Economic Transformation Program also helped boost public investment.

Domestic demand will continue to be sustained, helping to support economic growth, Bank Negara Malaysia Gov. Zeti Akhtar Aziz said at a press conference following the release of the data.

"Growth will likely sustain at a strong pace of 4.9% year-on-year in second half of 2012, after expanding by 5.1% in the first half of the year," said Peck Boon Soon, chief economist at RHB Research.

He also raised his full-year GDP growth forecast to 5% from 4.5% following the strong second-quarter print.

"At the prevailing level of the overnight policy rate, monetary conditions continue to be supportive of economic activity," Ms. Zeti said, suggesting there's no need for monetary policy easing to further stimulate growth.

The central bank has held the policy rate steady at 3% for seven consecutive rate reviews.

Benign inflation also aids the central bank's current stance.

The consumer price index--Malaysia's primary gauge of inflation--rose 1.4% in July, slowing from 1.6% in June, data from the Department of Statistics showed Wednesday.

Ms. Aziz stressed that the central bank's 4%-5% economic growth forecast for 2012 remains on track, adding that growth will be closer to 5% if current conditions continue.

However, the central bank is watching global developments because any sharp deterioration could hurt Malaysia's growth potential.

"Going forward, the global economy faces increasing downside risks emanating from the developments in several major economies," Ms. Aziz added.

2012年7月25日星期三

Malaysia: An Attractive Destination for Holidays And Gigantic IPOs

Mark Mobius, Investment Adventures In Emerging Markets |

Many Western investors would likely have little trouble naming this year’s biggest initial public offering in the U.S., but they probably don’t know that two of the top three global IPOs so far this year have been in an island nation probably better known as a holiday destination than an investment one.

That country is Malaysia, where an interesting story has been unfolding in the IPO market. This year’s IPO calendar has included two companies which both received strong investment commitments that launched them into the top three of the world’s largest new offerings of this year.

This popularity of Malaysia’s IPO market is a testament to its domestic liquidity in my opinion, and it has kept our analysts on the ground rather busy! While foreign participation in Malaysia’s market has been modest, I think these IPOs in the midst of global market uncertainty have piqued investor interest in this often-overlooked country. The level of investor participation, whether foreign or domestic, is a function of perceived value, growth potential and expectation of returns versus other investment alternatives. If Malaysia can deliver on its promised economic reforms, I think chances are good that foreign investors could embrace equities there.

Of course, demand for new issues will vary depending on the value and attractiveness of each individual company to be listed, but given the outcomes and subscription levels of the past few deals, it would appear that demand is more than adequate. In general, new IPOs have been listed at big premium valuations in Malaysia, beyond what one might normally expect had they been listed elsewhere. While this is beneficial to the company and original shareholders, inflated levels could be a concern for the investing public, as they might not be sustainable in the long-term. Here at Templeton, we are bottom-up up investors. Ultimately it is earnings that will drive how we value a company, a conclusion we draw on a case-by-case basis.

In times of economic turbulence like we have seen in the past few months, Malaysia has stood out to many investors as an attractive investment destination. In contrast to many developed nations in the throes of debt crises, Malaysia is running current account surpluses, with reserves reaching over US$130 billion.¹ While the total government (public) debt-to-GDP ratio has risen this past year to above 50% – a trend that concerns us – its total external debt-to-GDP ratio (that owed to foreign creditors) stands near 30%, reasonable in our view. (The U.S. external debt-to-GDP is more than 90%, for example.²) Malaysia’s high domestic savings rate is an asset, and we view the national balance sheet as strong overall. Like many nations this year, growth is expected to slip a bit, with the IMF forecasting GDP at 4.4% vs. 5.1% in 2011, although this rate still would outpace many economies, especially in the developed world. While not without challenges, Malaysia has generally been reaping the benefits of financial prudence in the wake of the 1998 Asian financial crisis and there is reason to believe growth could continue to rebound longer term.

To me, the potential for Malaysia’s growth appears obvious. It has a young, growing population (the median age is 26.8³) and it has been a prime beneficiary of a bullish commodity cycle in recent years. Malaysia is a net exporter of oil and gas, and is one of the world’s top three producers of palm oil and rubber. The sustained rise in agricultural commodity prices has raised income levels in its rural communities, and liquidity in its banking system remains high. These elements paint a hopeful picture for strong potential consumption growth and the capacity for both public and private sector reinvestment in the Malaysian economy.

Malaysia's Petronas Towers

Cultural Diversity

Malaysia is a beautiful country with a landscape of contrasts. Lush tropical rainforests, waterfalls, mountains and stunning beaches are juxtaposed against modern infrastructure, cities and skyscrapers. The warmth of Malaysia’s tropical sun is matched by that of its people. I like to think that Kuala Lumpur’s iconic Petronas Twin Towers symbolize the aspirations of its people to reach greater heights and a higher quality of life.

Malaysia’s tangible economic successes are widely documented, so I won’t go into too many details here. I do want to touch upon what I see as one of its key strengths—the diversity of its people. Due to its unique history among the Association of Southeast Asian Nations (ASEAN), Malaysia has an ethnically diverse, multicultural population with each community largely retaining its culture and language. This factor connects the people of Malaysia not just to the ASEAN community but also to the large emerging economies of China and India, as well as the Islamic countries of the Middle East. Malaysia’s large Muslim population has made the nation a hub for Shariah-compliant investments, which meet specific Islamic principles. In addition, being an ex-British colony, English remains fluently spoken in many parts of the country, an added advantage in global communications.

Malaysia is strategically located along a key maritime route of international trade, so in many ways, it is a natural candidate to become a hub for international commerce and finance. I think improvements in governance can further boost Malaysia’s case, such as ensuring the rule of law, fostering transparency, reducing avenues for corruption and engaging in consistent policies.

Economic Transformation Programme

Of course, the path toward reaching developed nation status can be riddled with potholes, and over-dependence on finite natural resources represents a potential one for Malaysia. However, the country has awoken to this danger and is addressing its economic bottlenecks. In September 2010, the government launched its Economic Transformation Programme (ETP), which provides a blueprint for many of the various investments and reform initiatives being undertaken in the country.

I would encourage anyone interested in investing in Malaysia to visit the government’s ETP website to see all the initiatives and progress to date. I think the ETP is ambitious and optimistic—as it should be in order to inspire greater things. (One of the goals for the ETP is for Malaysia to achieve the “high income” status of a developed-market by 2020.) To progress even further, I think Malaysia also needs simultaneous investments in education, communications and infrastructure. But even if a fraction of the ETP’s aims are delivered, Malaysia could realize greater advancement. In my view, the initial successes of the ETP could be the possible needed catalysts to drive more economic successes and potentially create a virtuous cycle.

Election Wild Card

This year’s general election in Malaysia is expected to take place before year-end, and represents a possible wild card in its future. Elections and leadership transitions create uncertainty wherever they occur, and investors are generally averse to uncertainty. What is interesting is that this particular election in Malaysia is seen as a test of approval for the current reform-minded government and could set the direction for Malaysia for the next five years. The last election in 2008 saw one of the worst showings for the ruling coalition Barisan Nasional, as it was the first time since 1969 to have not returned with a two-thirds majority in Parliament. This poor showing forced change within the system, which has so far appeared beneficial to Malaysia’s advancement.

I believe there are sparks of greater political maturity arising, and there is a gradual but noticeable discarding of previous radical politics. The spotlight has shifted instead to universal issues such as economic progress, social and economic justice, rule of law, transparency and corruption. Whichever party wins the upcoming election, the likeliest outcome as I see it is for change to continue migrating the country away from unsuccessful old practices. I am cautiously optimistic it will be for the better, as the people have declared their desire for a better life ahead. No longer seen as just a holiday destination, I believe Malaysia, and investors there, can look forward to exciting times ahead.

2012年3月5日星期一

CHART OF THE DAY: This Country Defaulted, And Now It Has One Of The Healthiest Public Sectors In The World

Joe Weisenthal

There is life after default.

This below chart from Barclays looks at all the world's key governments, looking at debt and deficit to GDP.

The very best is Chile, which has very little public sector debt, and a government surplus. The country is blessed with commodities, and fast-growing neighbors.

Next best: Russia, which is also blessed with natural resources, but which defaulted back in 1998. There can be life after default.

chart of the day, public sector deficit, march 2012

chart of the day, public sector deficit, march 2012

订阅：博文 (Atom)

2014年11月14日星期五

2014年9月15日星期一

2014年9月8日星期一

The Malaysian invasion

What’s in it for me?

What’s the future of Bitcoin?

2014年7月28日星期一

Continued Growth

BNM Rulings Taking Effect

Growing Interest in Secondary Market

Speculative Buyers a Threat to the Market

Overall Market Sentiments

2014年7月17日星期四

2014年7月8日星期二

Continued Growth

BNM Rulings Taking Effect

Growing Interest in Secondary Market

Speculative Buyers a Threat to the Market

Overall Market Sentiments

2013年3月5日星期二

2012年10月8日星期一

2012年9月6日星期四

2012年8月29日星期三

2012年8月15日星期三

2012年7月25日星期三

Mark Mobius

Recent Posts

2012年3月5日星期一