1. Lately we have been seeing rather rapid increases in the Kuala Lumpur Composite Index. Those who play the stock market must be feeling very happy. Much money must be made by investors from capital gains.
2. Some people believe that the rise of the KLCI is an indicator of the healthy state of the Malaysian economy. This may be true but let me throw some cold water in the belief that the index indicates that the economy is doing very well.
3. It is doing fairly well, no doubt, but that is not enough to push the KLCI to record highs. What is happening is that a lot of foreign money is coming in to buy Malaysian stocks.
4.In itself it is not bad. It is also a kind of foreign direct investment (FDI). But this kind of FDI is not about setting up industries to produce goods for export. The latter will not be easily liquidated to take the invested capital out. The plants which are set up cannot be easily sold. The Investors will have to manage them through good and bad times to get a return on their investments.
5. But FDI in stocks and shares can be sold any time and the proceeds taken out.
6. Just as increases in investments push up share prices and the KLCI, rapid or massive divestments will push down the share prices and index.
7. We read in the papers that the Federal Reserve Bank of the United States is pumping US600 billion Dollars into the US economy. A part of this money will no doubt be used to invest in stock and shares of the developing economies. The result of this FDI-financed purchases will be a rise in the share prices and the KLCI.
8. In 1997-1998 the foreign investors pulled out their investments and the KLCI dropped from 1,300 to 262. Naturally a lot of local investors lost money. They could not meet margin calls nor raise money to augment collaterals for their bank loans.
9. The banks found themselves burdened with large numbers of non-performing loans and had to face the threat of bankruptcy.
10. Should the banks collapse the economy of the country will go into a tailspin. It did in 1997-1998. It will happen again should the foreign investors dump their Malaysian shares to take profits from capital gains.
11. Foreign funds, especially from the US coming in to invest in Malaysia’s stock market at this time must be considered as hot money. I would not be suprised when the KLCI peaks the foreign investors will dump their shares and collect capital gains. The share prices will fall rapidly and Malaysians who had chased the shares on their way up will be asked to meet margin calls. If they fail they will lose a lot of money.
12. I hope I am wrong. But sometimes my predictions about money and markets have proven to be right. In any case I only own 200 Malayan Tobacco shares bought before I became Education Minister. I have nothing to gain or to lose, but the country and the stock market investors will lose.
Stock ,Future and Skim Cepat kaya……..it can turn turn to be cepat Miskin
Why? Projection techincal consideration , hard fact and Speculation
All this is done with limited experience…what we dont know we speculate or wishful thinking..
When you are sucess full once you think you can repeat
So you enter in and out
In and out
On the margin………..istead of take your money
and invest on something solid base and FOUDAMANTLE
Or go to other sector other than stock
Like start a bussiness,plant rubber,plant oil palm or even coconut buy
some land….
Like all skim cepat kaya it turn out to be skim cepat miskin
We Re invest until the buble burst
Or the late comer who just got into the lift
When the building is creaking to collapse
In 1985 there are people who lose money ,graduity etc
The younger generation would not feel it nor believe it can happend to them.
There are people who apply for share and get it . The moment it was declared the price rouse and you make quick profit
In 1988 or so there people approach me on comodity market office in Ipoh who traded according to International time after at 1 am at nite.
In the begining it seem to gain up to RM 30,000 then dwindle down.When you instruct to stop trading they never stop until you lose you capital parish ……….some people says it is sindicate who never realy traded!!! Being young from kampong esily swindle…when you dont have a mentor.
Then remiser from stock market says it can happend in volatile commodity market. So start small time from borrowe money in stock market ..in the beginning you traded and control your self you make few hundreds luckily then it happend you met someone in the bank who talk about palying margin
You try but in the end …it end the same the so call runner(deposit someone else share) traded your account in colloboration with remiser trading your account to bitter end…and the owner come claim his share which deposited by runner you end up losing money..
You fight back by traded on you own but buying share when they were at the very bottom hoping it will soner rise again . The come George Soros destroy whole Malaysian economy so you are!!!
There is lesson should be learn for younger genration there is no short cut to riches
There are Skim Chepat Kaya (actually membuat you cepat miskin) . Skim Labu Peram ,Skim RM350,Skim Pak Man Telo itu zaman dulu . Time sharing ,vacation club (Swiss ….) yang never able to service their promise of hotel accomendation and still active selling to newly rich kampong folk in Baling etc with collaboration inocent you Malay youth .Zaman sekarang kita lihat skim Cacing,Skim Lintah,Skim Serai …….semuanya end swindling people hard earn Money. So be care full with you money. Every one is after it not only USA. Skim Arwona is yet to prove wheter skim cepat kaya atau chepat miskin
LOOK BEFORE YOU LEAP
Well, you see, actually the act of the Fed pumping $600 billions worth of US Dollars to but stocks in Malaysia is really, really bad, both for the US and Malaysia. The Fed creates money out of thin air, and we must realize that probably Obama and Ben Bernanke is really trying to collapse the world economy and create a havoc purposely!
About Tom DeLay, well I couldn’t help him, although we are in the same Republican party of Texas. We only wanted to help the citizens make money, not to oppress the weak. Put America first, then the other countries. We only wanted to clear the economic misconception of the American and world economy.
Ron Paul 2012. Ron Paul R(evol)ution.
Good morning Ayahanda Tun,
From REUTERS in SST on what have happened to the bonds hold by Republican politician:-
World
HOME > BREAKING NEWS > WORLD > STORY
Nov 25, 2010
DeLay convicted of money laundering
SAN ANTONIO (Texas) – FORMER Republican US House of Representatives majority leader Tom DeLay was found guilty on Wednesday of laundering money.
Nicknamed ‘The Hammer’ for his iron control of the Republican caucus in Congress as majority leader from 2003 to 2005, he was accused of conspiring to funnel corporate money through the Republican National Committee, which sent $190,000 (S$248, 500) in campaign donations to seven for Republican candidates to the Texas (Bush punya County?) legislature in the 2002 elections.
A jury convicted DeLay after a trial in Texas District Court in Austin. ‘The public officials people elect to represent them must do so honestly and ethically and if not, they will be held accountable,’ said Travis County District Attorney Rosemary Lehmberg.
DeLay raised the possibility of an appeal. ‘This is an abuse of power; it is a miscarriage of justice. I am very disappointed. But it is what it is … and we will carry on.
Hopefully we can get this before people who understand the law,’ DeLay said after the jury gave its verdict.
DeLay faces five to 99 years in prison for the money laundering conviction and two to 20 years for a conspiracy count as well, plus fines. He is free on bond until his sentencing on Dec 20. — REUTERS
Good day Ayahanda Tun. Crime is a crime; and there is no way we can escape. It’s either we PAY OFF FOR THE DEBTS ($) incurred today so that our generations will have BETTER LIFESTYLES and LESSER DEBTS ($), OR we DELAY by incurring additional debt($)today without knowing that our future generations will require pay for the act of money laundering through political party and general elections. I do not know who is Gerakan Tun Lim Chong Eu and what had he contributed to the Malaysian Community. Nevertheless, I believe his children and grand children today have inherited good deed of fortune done by him specially for them proudly with dignity and integrity as Gerakan members.
Salam buat Tun sekeluarga.
Stock Maket adalah antara kaedah yang juga boleh menjana ekonomi rakyat. Oleh itu kemasukan FDI dalam pasaran saham tempatan adalah merupakan satu kaedah yang dianggap dapat menjana ekonomi negara. Apabila FDI memasuki pasaran saham tempatan, sudah pasti akan melonjakkan nilai saham tempatan. Seterusnya, apabila nilai saham meningkat, secara tidak langsung pelabur tempatan akan mendapat keuntungan atas nilai saham yang telah dilabur dan dipegang dalam tempuh tertentu.
Keuntungan yang diperolehi pelabur tempatan itu akan dilaburkan semula kedalam sektor lain yang lebih selamat dan kekal. Dengan kata lain, akan ujud pelaburt DDI yang akan mengambil alih FDI secara cergas melabur semula dalam sektor lain seperti industri pembuatan atau perladangan yang secara tidak langsung akan mengujudkan peluang pekerjaan, perniagaan dan malahan menghasilkan barangan untuk tujuan domestik dan juga eksport.
Tun, Jika benar pelabur FDI sudah mula masuk ke dalam pasaran saham Malaysia secara aktif, itu adalah merupakan satu rahmat kepada para pelabur tempatan yang agak sekian lama menunggu kenaikan nilai saham mereka seperti mana era sebelum krisis tahun 1997. Ketika itu pelabur amat gembira kerana nilai modal pelaburan mereka meningkat berkali ganda, termasuk keluarga saya yang ada melabur serba sedikit dalam saham GLC, Blue Chip dan Perladangan.
Saya masih ingat ketika itu(semasa era DEB sedang rancak) dasar pengagihan saham korporat boleh dinikmati oleh syarikat Bumiputra yang bertaraf Sdn Bhd akan mendapat tawaran(pink form) sejumlah tertentu saham korporat(kalau tak silap kuota minima 10 lot) melalui penyenaraian syarkat awan yang baru disenaraikan. Manakala ahli politik dan mereka yang berpengaruh mendapat kuota tidak kurang 200 hingga 300 lot seorang.
Tetapi itu cerita lama. Nukilan ini sekadar nak berkongsi pengalam dan nostalgia, kerana zaman kegemilangan itu telah berlalu. Apabila pelabur asing mula lari dan index pasaran saham tempatan merundum, minat untuk melanggan saham mula berkurangan. Tawaran saham penyenaraian baru kepada Syarikat Bumiputra bertaraf Sdn Bhd sudah tidak ujud lagi dan hanya tinggal legenda. Saya tidak pasti kuota tawaran kepada ahli politik masih lagi ujud atau tidak.
Jika FDI masuk semula, BSKL harus mencontohi S
Ayahanda Tun,
From MI about DSAI,
Anwar likely to face censure over APCO-Israel jibe
By Clara ChooiNovember 24, 2010
Anwar had claimed that APCO was behind both the 1 Malaysia and 1 Israel concepts.
/// By checker on November 22, 2010 12:23 PM
Mr T or whoever you are, that explained why you are not a leader and will never be one for asking those questions to Tun and expect to be given answers on the platter . That’s why we, Malaysians, should recognise Tun as a great leader. ///
checker – please check before you start licking and polishing.
Those statements were not made by me. Those statements and comments were made by TDM. If you have any beef, consult the great leader. And they are not questions – they were pronouncements made by TDM.
How do you know I am not a leader? Do you know me? So, non-leaders are not supposed to comment? Non-leaders are not supposed to comments? What is the “Comment” button here for? Why are you commenting here?
Yes, Adolf Hitler was a leader. Robert Mugabe is a leader. Kim Jong En is a great leader. By your logic, only these people can ask questions and make comments.
TDM don’t need your help to defend himself. He is very capable of doing so. So, please stop grovelling.
Dear Tun,
We saw the rift between the north and south koreans today. Is this the indication of a war coming in the far east? Are we becoming the next middle east? The US are fast to comment on the news, they are creating a big news out of it and pledges their upmost support to the south koreans.
Will this lead to a big economy bubble burst in this region? As you know they are already getting China (their debtors) involve in this issue even at this stage.
BORNINTHE80s
Dearest Tun
may I..
// By AHMAD BADRI Author Profile Page on November 20, 2010 11:03 PM
…..Surely the Malaysian public financial institutions need to invest, that
salam Tun..
http://peribadidrmahathir.blogspot.com/
golami
Why didn’t IMF’s bailout come to Malaysia you ask?
Well, its because the bailout was attached with terms and condition which are not appropriate for Malaysia. Most of the terms and conditions are generic. They are transparent government, economic liberalisation and tax increase.
But i reckon the main reason is because Malaysia would still like to bath in its old ways, the ways of the corrupt. The bald and ugly people at the top like their moolahs dirty.
The way you’ve previously during the slide which that time KLCI is 800points.
On National TV you told Malaysian, our stocks now is cheap, you got to buy now.
But during that time, some young entrepenuers that owns companies like Rekapac, Tongkah, Aokam, UEM and Konsortium Perkapalan, starts to dump their stocks.
While Petronas was directed to go to rescue, but rescue is for the Corporate levels only.
Small mens on the road, was the worst hit. Yet, I remember you told Malaysian it is cheap to buy.
So, honestly your prediction onto stocks were not accurate but very biased to your liking.
If without foreign equity to play in our fields, then only the cronies of certain political party controls the market as the top ten of the KLCI companies are GLC.
So be it some call me ignorant. Yet ignorance to your call, had saved me a lot.
Assalamualaikum Tun,
1. Foreign funds are hot moneys; people who gave these capitals are only interested in gaining more. KLCI should be stern on FDI selling and buying. We can
Salam untuk Tun.
Alhamdulillah, sekadar hendak berkongsi pengalaman dan nostalgia.
Tun, Jika benar pelabur FDI sudah mula masuk ke dalam pasaran saham Malaysia, itu adalah merupakan satu rahmat kepada para pelabur tempatan yang agak sekian lama menunggu kenaikan nilai saham mereka mana era sebelum krisis tahun 1997. Ketika itu pelabur amat gembira kerana nilai modal pelaburan mereka meningkat berkali ganda, termasuk keluarga saya yang ada melabur serba sedikit dalam saham GLC, Blue Chip dan Perladangan.
Saya masih ingat ketika itu(semasa era DEB sedang rancak) dasar pengagihan saham korporat boleh dinikmati oleh syarikat Bumiputra yang bertaraf Sdn Bhd akan mendapat tawaran(pink form) sejumlah tertentu saham korporat(kalau tak silap kuota minima 10 lot) melalui penyenaraian syarkat awan yang baru disenaraikan. Manakala ahli politik dan mereka yang berpengaruh mendapat kuota tidak kurang 200 hingga 300 lot seorang.
Tetapi itu cerita lama. Zaman kegemilangan itu telah berlalu. Apabila pelabur asing mula lari dan index pasaran saham tempatan merundum, minat untuk melanggan saham mula berkurangan. Tawaran saham penyenaraian baru kepada Syarikat Bumiputra bertaraf Sdn Bhd sudah tidak ujud lagi dan hanya tinggal lagenda. Saya tidak pasti kuota tawaran kepada ahli politik masih lagi ujud atau tidak.
Jika FDI masuk semula, BSKL harus mencontohi S
salam tun,
1) Padangan saya hanyalah sebagai orang awam yang tidak mempunyai latarbelakang pendidikan ekonomi, hanya sekadar lontaran buah fikiran.
2) Pada masa sekarang terdapat banyak industri pembuatan dalam pelbagai sektor dalam mengerakkan ekonomi negara. Walaubagaimanapun sektor ini semakin banyak menghadapi masalah terutamanya apabila kos tenaga buruh semakin meningkat dan menyebabkan pelabur asing menghentikan operasi. Dalam masa yang sama, kemasukan tenaga buruh asing juga bertambah kerana bertujuan untuk mengurangkan kos tenaga buruh tempatan yang tinggi.
3) Sektor industri kita sepatutnya sudah mula beralih kepada bidang RnD dan menghasilkan produk berjenama tempatan. Dalam masa yang sama meningkatkan eksport produk tempatan ke luar negara supaya lebih banyak wang dibawa masuk kedalam negara. Tetapi malangnya usaha ke arah ini tidak dapat dilihat dengan jelas, kita lebih suka menumpukan kepada industri pembuatan semata2 setelah RnD dilakukan diluar negara. Malahan banyak industri pembuatan tidak membangunkan kelengkapan-kelengkapan yang diperlukan didalam negara sebaliknya mengimport masuk peralatan-peralatan canggih dari luar negara seperti dari Jepun, Korea, China, Europe dan US untuk kegunaan industri pembuatan di dalam negara.
4) Malaysia perlu meningkatkan produk tempatan yang berdaya saing diperingkat global, bukan sahaja produk kegunaan harian, tetapi termasuk ilmu pengetahuan, kemahiran dan tenaga pakar. Ilmu dan teknologi merupakan satu sumber pendapatan yang tidak akan berkurangan seperti produk komoditi dan hasil bumi yang lain.
5) Diharap negara kita dapat menjadi mengubah statusnya sebagai negara membangun kepada negara maju menjelang 2020.
Dear Tun,
This subject, I disagree partly with Tun. Yes, the outflow of money can do damage to the country. But the inflow of cash so far is benefiting me, the partime investor, as well as the country (I think so). I call it a “calculated risk” profiting scam. It is legal as you said. If someone wants to give you money, just take it Lah! I sold my shares, make some profit, keep the money in gold, go home and sleep….
So, for the big local investors, you know what to do…..
Tun, in the game called poker, with the cards shown on the table, never trust your set of cards is the best bet. When you walk in, you must have limits to your investment. Walk off and SWEAR if you lose…Similarly, if the chips are flowing to your side, don’t ever count it!! There will be time enough for counting, when the deal is done. Go back home quickly and eat Kenny Rogers!!!
Tun, please don’t spoil the market now…..I still have plenty of shares in my hand. Wait after election Lah…..
I pray to God to give you good, good and very good health.
Take care Tun.
As’kum Tun,
A little correction on the terms used. ‘Hot money’ is not FDI. Purchasing Stocks/Shares on the Exchange is not an FDI.
All in all, you’re right in the sense that margin calls will be asked should investor (not investor), stock TRADERS to be exact uses leverage to multiply their earnings, hence, their risk also.
KLCI, Singapore Index, even USD Indices (DJIA, NASDAQ) are growing at relatively fast pace. Quantitative Easing method used to expand holdings of OWN securities have definite longer-term inflation expectations thus destabilizing economy again. But whatever it is, it’s Bernanke’s and the Fed’s decision we just wait and see what happens (we already know what’s going to happen though).
It is only a matter of time before the ‘air’ pumped into these Exchanges be pulled out and ALL prices plummet again. Stock Investors WATCH OUT for the signal! Steep rise in the Stock Markets almost always followed suit with a sharp decline.
Salam Tun & fellow bloggers,
May I…
// by Amin Tan on 20th Nov
Thanks for a very well-explained brief on investment in stock market.
// by T on 21st Nov
Mr T or whoever you are, that explained why you are not a leader and will never be one for asking those questions to Tun and expect to be given answers on the platter . That’s why we, Malaysians, should recognise Tun as a great leader. When in crisis, as critical as a national crisis, he being THE leader must be willing and able to apply his great wisdom and NOT blindly following the so-called experts’ advices. This is a national security and survival issues. Advice is cheap.
Tun usually has to put on new cap to THINK OUTSIDE THE BOX, to think something what the so-called expert NEVER THINK BEFORE. ( That’s why I like to hear his speeches whenever I have the opportunity )Such decision requires great wisdom, courage, belief, commitment and determination and lastly A PRAYER too. Sometime, it requires a mere common sense which after all, as always been mentioned, IS NOT COMMON after all. Do you get it Mr T?
Dear Tun,
You are right, stock market is not the only answer to Malaysian economy (not sustainable, where investor can just pull the plug). In Malaysian formative years we were lucky there was high demand fo tin, rubber, oil palm and maybe cocoa. Probably you have predicted these commodities wont last long or it will not spur our country to greater height. You brought in electronic, semi heavy industries and manufacturing. These too have its days. Almosat all electronic manufacturing have gone to China (look at Bayan Lepas industrial estate). Soon oil palm production will be taken over by Indonesia. Our so call high value oil will also disappear soon at the rate everybody who is somebody clamouring for its revenue. BUT I have not seen or read any strategies by the government of where or what our economy is going to be based in the future. Singapore have change their strategy to bio..whatever. Thailand and even Vietnam have surpass us in agriculture. Where are the think tank in Najib’s arsenal?
Salam Tun yang di hormati,
1. Sejarah Jepun menjadi lakaran, jangan jadi bodoh sombong, belajar dari pengalaman, jangan rasa kita pandai sangat, dan juga belajar dari kesilapan diri sendiri atau orang lain.
2. Bila nak berdagang pasaran saham, belajar berdagang pasaran saham. Bila nak berdagang komoditi, belajar berdagang komoditi, dan bila nak berdagang matawang, belajar berdagang matawang.
3. Konsep nya sama; beli semasa harga rendah, jual semasa harga tinggi. Dapat untung.
4. Peluang sentiasa lalu da hadapan mata, sesiapa yamg cepat, sesiapa yang buat kerja, selalu dapat.
5. Bila berdagang buat analisa, jangan berdagang dengan ‘rumors” sahaja.
6. Tapi itu yg berlaku di KLSE, “rumors” melebihi analisa.
7. Bila terkena, semua di salahkan, kecuali diri sendiri.
8. Betul kata Tun; “Melayu mudah lupa”.
My Salam to Tun and Tun Dr Hasmah.
May you both be in the best of health.
To jeff: You don’t trust anyone, do you? You think everyone is a liar and a cheat? Tun took very good care of this country while he was PM and I’m sure you benefited from his policies. Otherwise you would have left this country. You are still around enjoying life here. It is people like you who cannot be trusted. You are just like the opposition. The so called angels who are really the devils waiting to plunder the wealth of this great nation.
Thank you Tun. Thank you for taking good care of this beloved country.
Dearest Tun
May I..
//By amin tanAuthor Profile Page on November 20, 2010 10:58 AM
Dear Tun,
I agree with your analysis on the stock market and its impending disaster if foreign investors dump our shares at one go.
This should never happen if the banks know what they are doing. The central bank should have learnt their lesson from 1997 crisis. NEVER LEND MONEY TO BUY SHARES AND NEVER TAKE SHARES AS COLLATERAL. If commercial banks hold on to this basic principle, we should be safe. Anybody wants to buy shares it has to be from their own savings. //
Dear Amin Tan
1-I concur absolutely.Share investments should be by using own cash only so that you can hold for as long as it takes.
2-Borrowings to play the stock markets usually come in the form of margin financing whereby banks will allow investors to purchase shares up to a certain leverage maybe of 10 x their security (may be many times more depending on your financial standing etc)
3-So if they have 50,000 cash they may be able to buy shares up to rm500,000-00.The problem is once the margin of loss almost reach the cash value the investor must top up his cash security (margin call) or the banks will liquidate his shares.
4-Usually during bad bear runs the chances is that the banks will just force liquidate the shares because most of the margin players are gamblers not stupid to risk any more and this is what that exacerbate the stock market crash..
5-From what I see it as a layman its the investors who will be losing all of his secured portion but the banks only make money from all the fees involved in buying and purchasing of shares not including the interest on loans.
6-But what is obvious is stock market investing is more of gambling than anything else.It is really not about fundamentals but more of speculation and manipulation.The authorities could just pass a haram edict to this and save the people from unnecessary risk.
7-Warren Buffet is only the world’s greatest investor because the FED helped with all the bailouts of all his investments, otherwise that Sage of Omaha would have already been a Disgrace of Omaha by now.
Thanks Tun
Tun,
What exactly do you want Malaysia to do or NOT to do? Look at some of your recent posts.
You don’t want to use the US Dollar.
You don’t want Foreign Direct Investments.
You don’t want forex trading.
You don’t want foreign money going into the stock market.
You don’t want Free Trade Agreement.
So, are you suggesting that Malaysia should follow North Korea’s example and be self sufficient?
Salam Tun & fellow bloggers,
I am not well versed at this subject however with little knowledge on it, I believe the stock market is the biggest gambling den legally established where the greeds will dominate and are convinced as the fastest way to create great wealth….then for what? It must be acknowledged that the winners selfishly enough will accept that as their wisest decision but we are fully aware that every winners there will loosers … meaning suffering. The rule of the game, if you win it is OK but if you lose, too bad for you. This is the best and shrewed way by the “big powers” to economically destroy even a country.
It is not really a coincidence that usually the new players will be given the taste of winning and become addicted. He then using all the resources they have, will blindly continue to play with little knowledge of the game but will only hope for a bigger bounty…..
Hope that we should not fall into this trap. That’s all I can say, a 2-cent worth of advise.
Salam Sejahtera Tun dan Keluarga.
I cant fathom why the present government does not heed your concrete advice.
I vividly still remember during the financial crisis.The so call economist seems do not know how to solve this huge problem.They simply look at each other and make comment which is unreliable and disasterous.
Some say why not loan from IMF, its come handy.
That point in time we are blighted.Inmagine what had happened we just blindly get the so call “loan” from IMF.Disasterous for our local company and Malaysia.
Then come your macnificent idea to solve the crisis.Although at the beginning people redicule your move but finally its a flying colour sucess.You should have been awarded Nobel Price.Unfortunately our skin colour remain brown.
The only reason I would like to vehemently asserts here why the present government does dot heed your advice.Really dont understand they seems to stiil prefer foreign adviser.Apasal ya Tun orang Melayu begini.TAF FAHAM LAH TUN.
May ALLAH Bless You Always AMIIN
Salam Tun & Bloggers,
1.Stock market was based on the basic principal of demand-supply,which favors capitalist
2.Bursa Malaysia,formerly known KLSE is merely a tool to keep in touch with the modern economic model/system
3.Often FDI were misconstrued as a real investment but in reality it’s normallly backed by a few scoundrel to make a quick buck
4.Hence,it is riddled with flaws/loop holes,such as manipulator & hedge fund taking advantage of these weaknesses
5.Tun you should offer an alternative to this system
6.Wassalam
YABhg,
Stock market is too “big” for people with little money like us….
We’ll just stick around at race courses….
Maaf Tun, salam untuk semu keluarga.
Disini saya ingin memberi sedikitahan tambahan pandangan dan pendapat melalui pengalaman dan pembelajaran yg telah dilalui.
1.Aktiviti pelaburan dengan cara membeli saham, adalah antara kaedah yang boleh meningkat modal para pelabur dalam jangka masa tertentu. Jika diurus dengan baik dan serious melalui pemantauan dan pengawalan berterusan para pelabur akan berupaya meraih keuntungan, terutama kaunter-kaunter yang berpotensi.
2.Kemasukan FDI dalam pasaran saham tempatan adalah merupakan satu kaedah yang juga dianggap dapat menjana ekonomi negara. Apabila FDI memasuki pasaran saham tempatan, sudah pasti akan melonjakkan nilai saham tempatan. Seterusnya, apabila nilai saham meningkat, secara tidak langsung pelabur tempatan akan mendapat keuntungan atas nilai saham yang telah dilabur dan dipegang dalam tempuh tertentu.
3.Keuntungan yang diperolehi pelabur tempatan itu akan dilaburkan semula kedalam sektor lain yang lebih selamat dan kekal. Dengan kata lain, DDI akan mengambil alih FDI secara cergas melabur semula dalam sektor lain seperti industri pembuatan atau perladangan yang secara tidak langsung akan mengujudkan peluang pekerjaan, perniagaan dan menghasilkan barangan untuk tujuan domestik dan eksport.
4.Saya adalah antara pelabur lainnya yang amat gembira jika FDI kembali semula ke dalam pasaran saham tempatan kerana akan melonjakkan harga saham, mungkin hampir sekali ganda, terutama saham GLC, blue chip dan saham-saham berpotensi lainnya(pelaburan keluarga yang disimpan agak lama).
5.Apa yang perlu BSKL harus berupaya memantau kegiatan spekulatif melampau pelabur FDI ini, agar peristiwa 1997~1998 yang telah memberi pengajaran dan pengalaman kepada negara, khususnya BSKL sendiri supaya sentiasa keadaan berhati-hati dan berwaspada.
6.Pastinya BSKL telah mempunyai mekanisma tertentu yang boleh diguna pakai sebagai alat pemantau untuk bertindak sebagai CIRCUIT BREAKER apabila ada unsur-unsur atau bentuk manipulatif melampau yang cuba hendak dilakukan oleh aktiviti pelaburan FDI ini. http://www.sec.gov/answers/circuit.htm ).
7.Mereka yang berminat untuk membeli secara CONTRA harus bijak mengawal dan monitor pelaburan setiap masa. Lakukan pembelian sesuatu kaunter ketika harga sedang rendah dan volume pembeli sedang meningkat(aktif). Jangan membeli kaunter-kaunter yang sudah meningkat naik terlalu tinggi. http://www.klse.com.my/website/bm/trading/equities/contra_transactions.html ).
8.Bermain pada kaunter berharga murah(bawah RM1.00 ) mempuyai kelebihan, dimana pembelian mampu dibuat pada margin yang lebih besar, paling minima 50k dan keatas, iaitu pembelian paling ekonomik dan dijangka boleh meraih sedikit keuntungan setelah ditolak kos komisyen. Dengan syarat jangan bersikap terlalu tamak.
9.Pembelian contra membenarkan penangguhan bayaran dalam masa tiga hari. Jika pada HARI PERTAMA pembelian dilihat telah boleh membuat sedikit keuntungan (katakan 0.3 sen/unit atau lebih sedikit), langkah melepaskan semua pembelian harus dibuat dengan segera. Jika tidak peluang hari kedua harus diambil tindakan segera. Hari ketiga mungkin telah terlambat dan bergantung pada keadaan. Harus ingat jauhkan bersikap terlalu TAMAK di dalam diri.
10.Oleh kerana harga(kaunter aktif itu)sentiasa TURUN/NAIK dalam satu hari,(melalui pengalaman sendiri) pelabur jenis contra ini harus bijak bertindak dengan membuat langkah PURATAKAN(average) harga pembelian(mengikut turun/naik harga) bagi tujuan pengawalan(iaitu untuk minimakan kerugian atau maksimakan keuntungan).
11.Jika beli saham bertujuan untuk disimpan, ada lebih baik membeli kaunter GLC, Blue Chip dan kaunter berpotensi lain yang lebih kukuh. Kebaikan yang diperolehi mungkin dalam bentuk Dividen, Bonus ataupun Rights issue, disamping mungkin akan berlaku peningkatan harga. Tq Tun.
Assalamualaikum YABhg. Tun and All
Yuppp,, it’s okay to be very careful with anything we achieve(“Be Careful of the Axes”),
everyone likes to achieve the highest point as he can, but some of it are quite deceiving and just luring us to feel good and easily satisfied ,
if we fail to have adequate “back-up” to face any untoward trend that came from within or without…
as stated in item 8
“8. In 1997-1998 the foreign investors pulled out their investments and the KLCI dropped from 1,300 to 262. Naturally a lot of local investors lost money. They could not meet margin calls nor raise money to augment collaterals for their bank loans.”
Is there any mechanishm to prevent sudden undesired outflow of funds or at least we have some monitoring for early detection and take necessary action to counter potential threats????
I don’t know i ain’t no expert…. hihihi
fairuz kamarulzaman
Dear Sir,
Malaysians like to be praised (high growth, good investment climate, good fundamentals, emerging markets etc), and forget that with high praises there are opportunists reaping profits.
High growth? Not anymore, we are already behind Indonesia and Vietnam.
Salam Tun,
Hot money will leave when theres a crisis of confidence, like what happened in 1997. Portfolio managers scan the horizons for places to put money to get the best returns. If they pour it into Bursa Malaysia now it only means that they perceive Malaysia to be among the countries offering the best returns. Perhaps this perception came about after DSNajib started making the right noises, meeting the right people from the right places.
These managers base their decision to come in mostly on macroeconomics and fundamental analyses, and time their entry on technical and other statistical analyses. They use these because they mostly worked for them over time and elsewhere. Once they are in, they will manage the portfolio based on normal portfolio management techniques to buy and sell invdividual stocks to optimise the returns – as long as theres no crisis of confidence. Without the crisis of confidence theres no reason for them leave and they will stay on to reap the rewards of investing in a transforming economy (from a middle of the road income economy to a high income one).
We need them, don’t we? Otherwise why would we go around making roadshows and the likes, spending good money to woo them? Its good for local investors and fund managers who can see the value of their portfolios rise. Its good for ASN and other floating unit trusts holders who will see a gradual rise in the value of their holdings. Its good for us. For the daytraders, at last they will see some profits especially in those shaky penny stocks they were stuck with for months now (talk about daytrading…haha!). Now, they can really do some real daytradings.
So, its imperative that we manage our economy in such a way that there will be no surprises for the hot money managers. These peoples rely on predictability and policy consistency. They are kind of jumpy, these people and they will really jump if suddenly the economy behaves funny. They will then rush for the exit on the first plane available or even the last plane out, as long as they can leave, whether they already made money or not.
The crisis of confidence may not emanate domestically but from other markets. Thailand was the one they lost conficence in back in 1997, but it became contagious to other countries including us Malaysia whose economy was hailed as a beacon of success six months earlier by no less than the then mighty IMF. In 2008 it was the US. We suffered because they can’t come out to invest here or they had to leave because they need the money to paper the holes that kept popping up all over the place over there.
This crisis of confidence seems to recur every ten years or so. The next once could be in 2017/18 (before this: 1987; 1997; 2008). Knowing this we should just be careful. Individually, we should manage our own portfolio accordingly – cash out the moment the market becomes kind of jittery, go back in when it settles down. Just don’t get caught, and don’t get stuck. Most importantly, don’t get greedy. With your capital intact, you still can invest when the good time returns.
Daytraders should scalp like crazy while you can. When the tide went up, every floating thing goes up too, even the craps. Portfolio managers should not get wrong footed, again. Based on 1997 and 2008 crises, their diversified stocks holding may not be enough for winners to balance out losers. The whole market went down. Their total portfolio value plummeted with it, winners and losers included. Only difference was, some winners bounced back within days or weeks, the losers stayed down. But most continued to go down. The total value recovered to about half or less of its value before the crisis, or did not recover at all.
In time of crisis the only survivors were the real hedge funds with skilled managers and diverse strategies. Some even prosper. Yes, this is a different subject altogether best discussed elsewhere.
Enough lessons should have been learned over the years. We should be more prepared. Theres absolutely no reason to refuse the hot money. Its how we manage the economy…and then pray that others (especially the neighbours) will manage theirs well, as well. But surprises, like the discovery of “black swans” come unanticipated, when you least expect them.
Dear Tun,
I fully agreed with you. Such a extreme analysis which is so convincing. Thanks for the advice Tun and hope that the current government may do something about this, at least some preventive measures.
a’kum Tun
why did you not took the money that the IMF has already allocate for our country in 1997-19998. i heard a lot of bad story and bad mouth about IMF.
but im still curious about it. i dont believe from sources that are’nt true. why dont you tell all of us what made you decide not to take the money? this matter can happen to our present government if the situtation is under pressure and desperate. but i still have faith and i believe our present government is not stupid, in fact they are good although there are still lack in certain field. hope you can write an article about IMF and other things out there that we dont know after this. it can help the next generation from making mistakes and aware.
GOD bless you Tun n Family
Thank you very much for allowing me to share precious information with the Malaysian readers. You are absolutely right on your assertion about FDI especially on US Dollar pouring in into the country.
Just when China are taking intensive safety measures about US paper print monies, Malaysian should be very careful about losing their stakes thru this kind of investment.
Truth is very contagious for some. However, allow me to share some interesting view written by David Chu … to hell with the best interest of US.
http://www.rense.com/Currency%20Wars%20For%20Dummies.pdf
Have a nice day ayahanda Tun, and again please take care.
Assalamualaikum Tun,
Agreed with your article. I would just like to add that instead of relying on foreign investors, why not rely on local investors, both retail and institutional investors?
Just look at the recent Petronas Chemicals Group (PCG) Initial Public Offering :
Share offered to public : 80,000,000 units
Share price per unit : RM5.05
Oversubscribed : 5 times
Total available funds from pubic : RM2,020,000,000.00
Since it was oversubscribe, many from the public were unhappy since many did not get the shares.
Mind you this is only this only the retail investors excluding the bumiputra portion and institutional investors.
Clearly there is great demand for GLCs shares from the public due to their stability and strong fundamentals.
Why not transfer some of the GLCs share to the public as a source of getting funds to finance their expansion and operational activities?
This is also in line with the current government policy for Khazanah to divest it’s shareholdings.
The government is burden with expenses to finance national development. I would suggest the government create GLCs or existing GLCs, give the GLC the development project, and the GLC go for IPO for financing.
Net impact will be less burden to the government, demand by the public for GLCs shares will be met, public get stable shares which should pay good dividends.
Domestic investors are not like foreign investors that will dump the shares and leave the country just to make a quick profit.
Even if domestic investors were to sell the shares, they most probably put the money in ASB, Tabung Haji, or FDs (for non muslms). In other words, the money is still in the country but transferred to another form of asset.
Just my opinion.
smekom tun
terima kasih diatas nasihat tun ini,moga pelabur2 yang terlibat lebih berhati2 dan peka di setiap tindakan mereka,tun boleh ke kalau tun tun selitkan peringatan tentang KEMATIAN?supaya mereka yang ego,tamak,sombong,pentingkan diri,dan macam2 lagi agar tersentuh hati mereka,kalau tidak tersentuh pun xpe,mungkin sebagai pedoman pada kami ini(pemuda),islam/bukan(sbb semua akan mati)insaf dan lebih jujur memperjuangkan AGAMA,bangsa & negara.DEMI MASA SESUNGGUHNYA MANUSIA SENTIASA DALAM KERUGIAN KECUALI ORG YANG BERPESAN2 KEPADA KEBAIKAN DAN BERAMAL SOLEH.saya doakan tun sihat sentiasa demi memperjuangkan AGAMA,bangsa&negara.
Salam Tun and fellow bloggers,
TUN THANK YOU AGAIN FOR TRYING TO SAVE OUR PEOPLE!
1. I think there are some other people out there knows bout this but not saying anything due to several reasons..greedy maybe…
2. The people in the government, some I think knows bout this but are not telling us, also due to several reasons…they’re looking at najib, if he cautions us, then…they will do the same…
Please don’t give up to educate us Tun, tqvm
Salam untuk Tun sekeluarga;
Kemasukan FDI kedalam pasaran saham adalah merupakan satu kaedah yang juga dianggap dapat menjana ekonomi negara. Apabila FDI memasuki pasaran saham tempatan, sudah pasti akan melonjakkan nilai saham tempatan.
Seterusnya, apabila nilai saham meningkat, secara tidak langsung pelabur tempatan akan mendapat keuntungan di atas nilai saham yang telah dilabur dan dipegang sekian lama.
Keuntungan yang diperolehi pelabur tempatan itu akan dilaburkan semula kedalam sektor lain yang lebih selamat dan kekal. Dengan kata lain, DDI akan mengambil alih FDI secara cergas melabur semula dalam sektor lain seperti industri pembuatan atau perladangan yang secara tidak langsung akan mengujudkan peluang pekerjaan, perniagaan dan menghasilkan barangan untuk tujuan domestik dan eksport.
Saya adalah antara pelabur lainnya yang amat gembira jika FDI kembali semula ke dalam pasaran saham tempatan kerana akan melonjakkan harga saham mungkin hampir sekali ganda, terutama saham GLC, blue chip dan saham-saham berpotensi lainnya(pelaburan keluarga yang disimpan agak lama).
Apa yang perlu BSKL harus berupaya memantau kegiatan spekulatif melampau pelabur FDI ini, agar peristiwa 1997~1998 yang telah memberi pengajaran dan pengalaman kepada negara, khususnya BSKL sendiri supaya sentiasa berhati-hati dan berwaspada.
Pastinya BSKL telah mempunyai makanisma tertentu yang boleh diguna pakai sebagai alat pemantau untuk bertindak sebagai CIRCUIT BREAKER apabila ada unsur-unsur atau bentuk manipulatif melampau yang cuba hendak dilakukan oleh aktiviti pelaburan FDI ini. http://www.sec.gov/answers/circuit.htm ).
Mereka yang berminat untuk membeli secara contra harus bijak mengawal dan monitor pelaburan setipa masa. Oleh kerana harga sentiasa turun/naik maka pelabur jenis ini harus bijak bertindak dengan membuat langkah puratakan(average)harga pembelian bagi tujuan mengawal(iaitu untuk minimakan kerugian atau maksimakan keuntungan). Tq. http://www.klse.com.my/website/bm/trading/equities/contra_transactions.html ). Tq.
Dear Tun,
I agree with your analysis on the stock market and its impending disaster if foreign investors dump our shares at one go.
This should never happen if the banks know what they are doing. The central bank should have learnt their lesson from 1997 crisis. NEVER LEND MONEY TO BUY SHARES AND NEVER TAKE SHARES AS COLLATERAL. If commercial banks hold on to this basic principle, we should be safe. Anybody wants to buy shares it has to be from their own savings. But political interference may cause the banks to loosen this mandatory rule. Majority of shares owners are genuine investors but the speculators and hedge fund investors backed by consortium of banks that may cause havoc to share markets, especially off shores banks. That is the nature of share markets. Our innocent local banks may be vulnerable if they lend to local unsuspecting so called speculators or green horns.
Tun has given a timely warning. Those in the authority should put in necessary measures to prevent such economic disaster from ever taking place again. In 1997 we were bitten. We should be wiser now.
amin tan
SALAM BUAT TUN BERDUA MOGA DIRAHMATI ALLAH S.W.T
1) ALLAH S.W.T PERNAH MENCERITAKAN KISAH SEPERTI DALAM SURAH AL-KAHFI BAGAIMANA PEMUDA-PEMUDA BERIMAN TELAH TERTIDUR BEBERAPA RATUS TAHUN YANG PADA SANGKAAN TERLELAP SEDETIK SAHAJA.
2) KAITAN DARI BABAK CERITA INI KITA BOLEH AMBIL BILA KUASA ALLAH S.W.T MENYEDARKAN MEREKA DARI TERTIDUR DAN KEMBALINYA MEREKA KE TEMPAT ASAL DENGAN MEMBAWA SYILING YANG LAMA DAN TIDAK BERNILAI LAGI PADA ZAMAN YANG BERUBAH.
3) BEGITU JUGA KISAH SEJARAH KITA BAGAIMANA WANG JEPUN POKOK PISANG TIADA NILAI BILA IA JATUH. SEMUA INI PERLU MENJADI IKTIBAR KEPADA KITA UNTUK MENYAMAKAN KEADAAN SEMASA KEGAWATAN EKONOMI KEJATUHAN MATAWANG.
4) JADI BETUL PENDAPAT TUN NILAIAN WANG KERTAS WALAU PUN BANYAK AKAN BERKURANGAN KALAU NILAINYA JATUH. BEGITU JUGA KENAIKAN DALAM BURSA SAHAM SAMALAH NILAINYA DENGAN WANG KERTAS INI. TAMBAH LAGI YANG MENAIKKANNYA IALAH WANG WARGA ASING.
5) PELABORAN YANG BERBENTUK FIZIKAL DALAM BENTUK BARANGAN AKAN MELIBATKAN URUSNIAGA YANG LEBIH NYATA MAKA AKAN MENGUNTUNGKAN INDUSTRI-INDUSTRI YANG KITA DIRIKAN.
6) MUDAHKAN FAHAMAN SESUATU SIMPANAN KALAU DALAM BENTUK WANG KERTAS TIDAKLAH SELAMAT KALAU NILAINYA SENTIASA TURUN NAIK. SIMPANAN ATAU PUN RIZAB SEELOK-ELOKNYA SATU NILAI YANG KUKUH. APAKAH SESUATU NILAI YANG TINGGI PADA ZAMAN SEKARANG DALAM PEMERHATIAN KITA SENTIASA NAIK,KUKUH,TERJAMIN DAN SENTIASA NAIK KADARNYA? EMAS?
7) SEBUAH RIMBA AKAN BERNILAI KALAU BERDAUNKAN EMAS KERANA GUGURNYA TIDAK AKAN KERING SERTA KUKUH. MENCARI SESUATU YANG KUKUH SEKURANG-KURANGNYA MELAMBATKAN USAHA-USAHA PEROSAK-PEROSAK YANG BERNAFSU SERAKAH.
WALLAHU’ALAM
Good insights Tun. Despite the ‘happy news’ we should always check all the possibalities that might turn out.
Thank you very much.
I was born on 1981, and i do feel the diference when you was the PM…
Good morning Ayahanda Tun,
Z. According to news during the spat between China and Japan over the capture of Chinese captain, Mr Wen Jiabao told the press that he is very happy with the current improved bilateral relationship of People
to me, i see a relationship between “positive” news of the current administration and the number of “sell out” activities being done by the current administration.
for example, right after controversial money and land “deals” from here goes to our “south”, i could see “positive” reviews from their leaders about the current administration being covered on our local media. coincidence?
another thing, once the current administration start pushing for “open” market related policies here, i could see a lot of american personalities coming here, saying all sorts of “positive” stuff about the current administration. coincidence?
the biggest gainer i see in these “coincidences” is 1man, his lead “enemy” is like being “dump” by the “coordinated” foreign media now.
i’m thinking, just “sell out” public properties in exchange for private “favours”, why not? any better “deal” than this?
of course 1man said people like me are behind time, things has to be “transformed”. i can fully support such suggestion when, and only when they make wrong, they are held responsible. but sime darby lost billions, khazanah also, and i believe there are more, and yet nobody are held responsible!
so i can see 1man just do whatever he likes since no need to be responsible when shits happen. so of course he can “sell out” whatever he likes.
when many countries trying to control funds and refrain from “free” market, this 1man, and now even the 2man, shout “open”!
when one after another western countries worry about bankruptcy, 1man here should “strong foundation” here, no need to worry!
sendiri pun tak faham, nak cakap besar tak ada masalah!
sendiri pun tak cukup nak bagi orang!
sendiri pun tak kuat nah lawan dengan orang!
i find it amazing that how similar is the current administration comparing to the previous one, a bunch of cunning no “brainers” hiring “foreigners” to run their own country.
of course this is just my personal view. but 1man, prove me wrong! i bet you are just another traitor!
Salam TUN dan semua
Saya bersetuju dengan pandangan TUN. Itulah bezanya antara FDI dan porfolio investement yang begitu senang tanam dan cabut..ianya amat rapuh..so hati hati..saya berharap kerajaan Malaysia dan badan badan yang berwajib harus juga perhatikan trend ini. Kita tidak mahu sejarah 1998-1999 berulang lagi, akibatnya rakyat yang buta soal soal kewangan akan terima padah dan kemarahan biasanya akan diarahkan kepada kerajaan sebagai tempat melepas geram. Walaupun salah sendiri kerana tamak. Itulah sikap orang Malaysia
Dear Tun,
I normally do not agree with a lot of things that you write in your blog due to ideological differences.
However in this case I am in 100% agreement with you.
Sadly the greed of those who see their stock investments continuing to rise are happy to have even more hot money come in to push our currency higher and set the country up for another huge fall when the money leaves.
If things continue this way we will see 1997/98 happen in Malaysia again very soon.
Kamaliuk1973
Salam Tun and Selamat Hari Raya Qurban.Semoga di panjangkan umur
I use to make money for weekend spending of the stock Market before the 97-98 surge and today some of the stock I had were only value only 10 % of the purchase price.I will never invest in stock market anymore. May those got burn before be very careful and be wise.
I wonder what happen to Anuar Ibrahim with his stock?? Make tonnes of money!!!
Getting rich this way is not for those fail to understand the fundamentals
Whilst the analysis is true, we should also look at why it’s so easy for the ‘hot money’ to manipulate the market.
We should look at our own shortcomings. The obvious reason is that our stock market size is small. But there are also many other markets where the size is small but the see-saw effect not so great.
But the other thing is the stock market player itself. Many retail players consider the stock exchange as nothing more than a casino. They revel in chasing trends and rumors. Very few actually studied the economic and financial details of the counters before making decisions. Lemmings, some people say.
If we can somehow educate the investors to do so. I believe that the effect of the hot money can be curtailed and the capital market can be more dynamic.
Salam Tun,
Thank you for this, made me think twice to invest in KLCI.
I am just learning the rope of trading.
Though I can say,if your speculation/predictions is >50% correct, some investors might go short with the index.
I believe many young professionals are not equipped with adequate knowledge of finance, investments, stock markets etc. Many know how to consume and dont save. Pension is not going to be enough (when or if we achieve our target of high income economy with higher inflation).
Anyway, I just dont think if Im studying in Malaysia, I would get the chance to learn about all these things.
This definitely should be introduced some what in the school curriculum. Not poison the young minds with gossips and unnecessary indulgent spending at a young age.
Dear Tun,
It is good to advise the Malaysian public to be cautious when dabbling with the stock market because as usual Malaysians “mudah lupa”!! The banks particularly should also be cautious when extending facilities to their clients especially to those stock market “gamblers”. This time around if the banks go bust, the govt. must not bail them out. Enough is enough!!
Dr M, only 200 shares in BAT? Are you kidding your self? Maybe 200 in your name, but in others’ names? Come clean please.
Dear Tun,
You are absolutely right. Westerners come and rob the money of the locals. I just dont believe in stock market. Blindly no basis for genuine investment.
Salam Tun…
U as always, are writing out of concern. One of your best qualities. So Tun, if you hint that there’s some sort of a pattern here that the 97-98 tailspin may recur, then what is your advice on this? Any guide?
(And really Tun? U only own 200 shares as we speak? 🙂 no worries.. i love u anyway… 😉
The axis of satan (to borrow Bush’s) has nowhere to go. It has to win at all costs otherwise bite the dust. It is on rampage to inflate the world and make real fast money from unbacked printed money. THe currency war is an act of brinkmanship to see how far others can take the economic disheaval and survive.
“Poor” Malaysia is going to loose (X billions RM) from its USD reserves in Bank Negara. Alongside that some heads may roll including Zeti’s and the Finance Minister’s.
If I have half-a-chance to make fast money I will jump into the stock market, let the devil take the hindmost! Afterall, it is a way to be in the high income economy as the PM wants us to be. Alas, I don’t have access to the tips or insiders’ information.
hope our watch dogs learned their lessons….
Dear Tun,
I never look at it from that perspective. Your opinion is surely useful. Thank you Tun.
Azahari
Salam Tun,
What the US govenrment is saying, by way of allowing ( or knowing ) some of the US dollars will be used for large investments in developing nations, is …
” Here, there is money, so go do your bsuiness “. This is seen ( though i fail to see the truth of it ) as economic incentives. Designed to restore confidence, when people have lots of money they are more confident to do business.
If the receipient of these money knows that it is actually of imaginary value, papers printed by specialised controlled printers, they will know to be extremely careful. They will know the fundamental of the business itself, the market, and the sustainability of the business is more important than the instant money as capital.
But for those who do not know or do not understand, or who solely rely upon these maggi mee financing, i feel real sorry for them. If the government does not understand, i feel sorry for the people. If the people do not understand, i feel sorry for the government !
I now begin to see why the hurry to have an election. One does not want to have an election towards the end of or after this cycle of “quantitative easing”, it is suicidal.
Dear Sir,
I totally agree with your reminders of ho0w stock makrets in 1997/1998 fell, I agreed that those investors were just manipulators, they will not reflect the true purposes of why we have shares to be listed—To share the opportunities to make money as partners, indeed these speculators had been ‘robbing’ many Malaysians of thousands, and thus with those so called Big Time Players like George Soros, they had also manipulated currencies, and double blew the whole South East Asian’s economies in 1997/1998. Dismantling the Indonesian Political Master Suharto, and divided UMNO into what had been the real challenges of BN on 8th March, 2008 when BN lost 2/3 majority, and also 4 state governments.
Unless KLSE and SC can work cloesly with Bank Negara on the flow of HOT MONEY, what you had predicted will repeat–They all reminded us about : History repeats itself!!
Warmest regards,
Peter Leow
QUOTE: [The Malaysian economy] is doing fairly well, no doubt, but that is not enough to push the KLCI to record highs. What is happening is that a lot of foreign money is coming in to buy Malaysian stocks.
Well, I think it just means that GE13 is round the corner, period. Foreign money or our EPF money, I know not.
Dear Tun,
The issues you said is true. But i remembered you have already placed measures for this i.e anti dumping laws, anti manipulation laws, etc This sort of conditions should not re occur. And i think Bursa Saham is smarter than that( to allow this situation).
Yes Tun it is hot money coming to the market and everyone seems to know about it.
Tun, what is your take on property prices as it seemed to have spiraled to prices which many ordinary Malaysians can’t afford.
Dearest YAB Tun,
You
Dearest Tun
// 12. I hope I am wrong. But sometimes my predictions about money and markets have proven to be right. In any case I only own 200 Malayan Tobacco shares bought before I became Education Minister. I have nothing to gain or to lose, but the country and the stock market investors will lose. //
1-Tun you have achieved the age of a master.You know what you are talking about.
2-Its already over 10 years after the last crash in 1997-8 and 10 years before that in 1986-7.Another one is due now too.
3-Yes the QE2 has contributed to these FDIs that they could use to jack up the local market before shorting them to destroy us after they have made tons of money as Tun has mentioned.
4-To all you big investors out there I know you would have a big headache to decide to buy or not to buy or sell or not to sell..
5-For me its very easy to decide to buy/not to buy or sell/not to sell because I have no money to buy ,or no shares to sell anyway.
6- This time I believe that Tun will be righter than ever before so be extra cautious if Tun has come out to warn us like this.
7- Don’t say you have not been warned.
Thanks Tun
Dear Tun,
Finally after reading your post, now I fully understand what is actually happening in the market, physical and share market. I keep asking around with similar minded person about our local physical market, has it gone quite slow compare years back? Most of them tell me their stories of how good business it was back then but recent year non of this is actually happening but funny part is the local share market is keep going high, all this doesn’t make sense, when the share market is good will directly effected to local physical market but is not happening.
Athan
Assalamualaikum Tun,
two days in a row regarding monetary matters?something fishy must be cooking and the stench’s coming from the great champions of democracy.USA.
Tun,your reputation of being anti American is well known world wide..but then your accuracy in matters of financial manipulation has always been true to the word.
DSNajib must take note of this situation and make whatever preventive measure ready.Re-pegging the Ringgit doesn’t sound that bad.
We,the Malaysian Rakyat can’t afford another financial meltdown.DSnajib has been saying about knowing the Rakyat need better with his “turun padang”concept.One of our biggest fear is financial loses.Help to assure us,financial stability.
The media should pick up Tun’s concern and try to get the goverment to respond.Maybe Tun is wrong this time,but at least assure us.
Tun still carry alot of weight with the Rakyat.Tun’s action in the nineties drew international criticsm but saved Malaysia from a total meltdown.
Just take some pre empt steps to keep us afloat during this volatile times.Some media attention to pacify the masses.Any action is better than no action because when rumour and gossips takes precedence over truth…all hell will break lose.
To Tun and family,may you all be blessed and protected by ALLAH SWT always.Wassalam
Salam Tun,
Semoga usaha anda diberkati dan diberi petunjuk oleh-Nya.
Saya mohon maaf kerana terpaksa ‘hijack’ comment ini untuk menarik perhatian tuan terhadap sistem pendidikan sekarang.
saya baru sahaja balik dari sekolah anak saya untuk anugerah pelajar cemerlang. memang tidak dapat dinafikan usaha memupuk ikatan muhibah antara kaum sangat jelas terpapar. saya rasa sangat gembira. Dalam masa saya terbuai dalam kegembiraan, saya menoleh kiri, kanan, depan dan belakang… kemudian, saya berasa sangat TERKEJUT!
rata-rata ibubapa yang hadir adalah masyarat cina sangat sedikit, melayu dan india nampak agak seimbang. TETAPI kebanyakan kaum Melayu adalah daripada golongan pendapatan rendah/sederhana. tiada langsung daripada pendapatan tinggi! Kaum Cina boleh dikira dengan jari… Jadi saya berfikir semula kenapa ini berlaku?
dalam perjalanan pulang, saya lihat sungguh ramai pelajar cina kini menjauhi sekolah2 kerajaan dan cenderung untuk masuk ke SEKOLAH RENDAH JENIS KEBANGSAAN… kemudian terdapat pula sekumpulan warga melayu elit yang cenderung untuk menghantar anak mereka ke sekolah integrasi (bagi mengurangkan beban anak mereka daripada terpaksa pergi ke 2 sekolah yang berlainan setiap hari!)
Dua golongan sasar ini, besar kemungkinan akan menjadi peneraju kepimpinan negara akan datang. amat sukar untuk golongan ini memahami erti sebenar toleransi antara kaum! ini amat merbahaya kepada negara…
saya telah lama mendengar ‘memperkasakan sekolah kebangsaan’ tetapi ia tidak lebih daripada slogan sesetengah pemimpin untuk mencari populariti… hasil nya jauh daripada apa yang dapat dibanggakan. harap Tuan boleh memberi sedikit pandangan terhadap senario yang bagi saya sangat merbahaya kepada negara jika tindakan segera tidak diambil.
afterall, its just a game.
The crooks from the West are trying their luck again…..to rip us out…..and worse using the same old trick. Are we gullible and greedy enough to take the bait? I guess some will.
Time bomb ticking
Salam buat yang dihormati TUN….
Seperti yg Tun perkatakan bahawa kenaikan dalam KLCI memang menggembirakan tetapi jika hakikat kenaikan itu adalah kerana pelaburan asing yg hanya ingin membuat keuntungan maka ianya amat merbahaya buat ekonomi Malaysia sebagaimana yang berlaku pada 1997-1998.
Diharap pakar-pakar ekonomi negara ini dapat melihat dengan lebih jelas dan segera serta mengambil tindakan dan langkah sewajarnya untuk melindungi ekonomi negara kita. Pandangan dan kepakaran yg telah TUN perlihatkan dahulu boleh menjadi panduan.
Assalamualaikum Ayahanda Tun,
I agreed, we have been seeing rather rapid increases in the Kuala Lumpur Composite Index (KLCI). Those who play the stock market must be feeling very happy. Much money must be made by investors from capital gains.
The stock market is one of the most important sources for companies to raise money. This allows businesses to be publicly traded, or raise additional capital for expansion by selling shares of ownership of the company in a public market. The liquidity that an exchange provides affords investors the ability to quickly and easily sell securities. This is an attractive feature of investing in stocks, compared to other less liquid investments such as real estate.
An economy where the stock market is on the rise is considered to be an up-and-coming economy. In fact, the stock market is often considered the primary indicator of a country’s economic strength and development.
But what we afraid most is the stock market bubble, a type of economic bubble taking place in stock markets when market participants drive stock prices above their value in relation to some system of stock valuation.
Foreign investors may dump their Malaysian shares to take profits from capital gains. Therefore, Bursa Malaysia and Securities Commision has to keep an eye on the control and behavior of the stock market and, in general, on the smooth operation of financial system functions. BNM has to ensure a stable and secure financial system, a catalyst to economic transformation and growth.
Jentayu Emas Trading