The valuable lesson taught by GREECE... (For Malaysia...)

Ever since the beginning of the whole episode of the GREECE problem which caught the attention of the world, do you really know what's the root of the problem? Is it the people? Or, the lack of natural resources? Or, politicians?

Let's have a read here...

Yup. Many people are saying that the people there are lazy (working less hours) if compare to other European, yet they are enjoying the same quality of living or benefits like counterparts.

Then, many analysts said that the lack of natural resources resulting the GDP growth of the country being dampened. Currently, Greece's GDP is mostly based on their shipping business, tourism and production of fine wine and olive oil. But, this is not enough to generate sufficient tax revenue to cover the social benefits provided by government.

The root of the problem is this...

In order to continue enjoying the great lifestyle, Greece are "financing" it with borrowings from IMF and ECB. Why do so if Greece knows that they can't afford it? Who make the decision to do so?

Obviously, politicians or the empowered government was the one to blamed. Previous politician candidates are lauding the feel good election campaign by dishing out all the goodies and perks to win votes. Yes, they succeed eventually with the belief from voters. Yet, they created the bomb which exploded few years back, which until now still can't defuse it.

"It's always easy to give hopes to people, but it's hard to convince people to accept the reality."

Lesson Learn: We need politicians whom can govern our country properly, not those who can only simply give hopes and then went into troubles. Voters should not vote based on how much goodies they can get during election campaign. We should think rationally what's good for the country in the long run, not only during or after one election. In the end, who will suffers the most as experienced by Greece currently? It's the people...

Do you want Malaysia to be another Greece?

*** Disclaimer: NO political comments or feedback here. It's just a pure blog post for everyone to ponder. ***

Belfast's FinTech Industry

I recently was a panel member on a BBC radio show called Inside Business. The topic for discussion was Belfast's booming FinTech industry. You can listen to the show's podcast here.

Farewell Widener - Here Comes the Summer!

I must apologise to all readers of my Blog for my relative blogging inactivity over the past year. The principal reason for this inactivity has been my role as acting Head of Queen's Management School. I've just signed up to do another year so my blogging activity won't improve any time soon!

The best part of the job has been working with my colleagues to develop the School's unique research, education and engagement agenda. The chief downside to the job is that I have less direct contact with students in the classroom. In addition, my research and blogging have taken a huge hit. I've been attempting to remedy the former over the past couple of weeks by working at Harvard University. I've met up with old friends, a PhD student, and a co-author, but most of my time has been spent in the fantastic Widener Library, which is celebrating its 100 year anniversary.  Today is my last day in the library before my summer holiday.

There is a very close connection between the Widener Library and Belfast. Harry Elkins Widener was a US businessmen, bibliophile and Harvard graduate who died when the built-in-Belfast Titanic sank on its maiden voyage. Shortly after Widener's death, his mother donated the library in his memory.

    

What's Boutique Fund Manager ?

Good news to all young and talented fund managers in the country. Securities Commission of Malaysia (SC) further liberalize the capital market by introducing a new category of fund management license recently called "boutique fund management" license.

What's so exciting about it?

Citing encouraging entrepreneurship and competition within the industry, this new license could propel the fund management business to another height. Below table shows the major differences between full-fledged vs boutique fund management firm:

Difference between Full fledged and Boutique fund management frim

What's sophisticated investors?

It's referring to high net worth individuals and high net worth entities. Gross income must have at least RM 300,000 or net tangible assets of RM 3 million excluding own stay property.

Candy Law Lam's Photoshoot

Candy Law Lam,  a mother of 3, released her photoshoot book ... and first run of 3,000 copies sold out immediately. A model and sometime actress 25 years ago... she has made her comeback in movies in two memorable movies recently. She had her divorce finalised two years ago. Oh, by the way she is 50 years old ... stunning!!!

Countries Stock market's Capitalisation As A % Of GDP

Someone twitted to us during our BFM show about the veracity of the figures of a country's stock market as a percentage of GDP. Why is the figure important ... if you can strip out foreign listings and non related listings (inclusive of SPACs) and maybe some REITs that are foreign or regional in nature, you get a good grasp of how much of your economy is listed. 


The higher the figure, the higher the importance of the stockmarket in feeling and shrinking economic activity. IN a super bull, Malaysian domestic economy would flourish as most people will see a lot of funds swishing around, the same when its a bear market when restaurants business dwindles sharply. The higher the figure, the more attention will the central banks and authorities pay to major fluctuations in share markets.

China, though has a lowly figure of GDP that is listed, is important this time owing to the exuberant amount in leverage/margin.






http://data.worldbank.org/indicator/CM.MKT.LCAP.GD.ZS/countries


The latest figures were for 2012. There are still discrepancies because many markets have "outside interests" being listed as well on their markets. It could be REITs, foreign listings, etc...

Bahrain  52%
Belgium 60.2%
Bolivia 27%
Brazil 51%
Canada 110%
Chile 118%
China 43.7%
Colombia 71%
Denmark 69%
France 68%
Germany 42%
Greece 18%
HK 421%
India 69%
Indonesia 43%
Ireland 49%
South Korea 96%
Malaysia 156%
Mexico 44%
Holland 79%
Philippines 105%

Russia 43%
Singapore 143%
South Africa 154%
Spain 73%
Thailand 104%
UK 115%
USA 115%
Vietnam 21%

Kenanga ASEAN Tactical Total Return Fund

Being a part of ASEAN, we living in Malaysia has seen the growth of the region for the past so many years. Would you like to participate in it? If yes, you should continue read on...

How good is ASEAN ???

ASEAN is a dynamic, fast growing group of economies. The ASEAN nations are committed to regional economic integration by 2015, in the form of the ASEAN Economic Community - a trade bloc that envisions transforming ASEAN into an economic entity with free movement of goods, services, investment and skilled labour, with a freer flow of capital.

Investing in the fund offers investor geographical diversification whilst leveraging on the growth potential of ASEAN as an economic community.

The fund is suitable for investors who are seeking long-term capital growth on the amount invested, who are willing to accept equity risk to obtain potentially higher returns and who want to have investments in the ASEAN region.

What can this fund offering you?

Click here to download the fund prospectus.