All posts by chedet

THE RESHUFFLE


1. The MCA has rejected Ong Tee Keat as President. It is to be expected that he would be dropped from being a Minister in the Cabinet.

2. His successor as Minister must know that Ong Tee Keat was about to expose the culprits in the Port Klang Free Zone (PKFZ) scandal. His removal may lead to the investigation and exposure as well as action on the Port Klang scandal being terminated.

3. I hope this does not happen. Tee Keat’s successor must carry on his work and expose as well as take action against the people involved in that scandal. I don’t think it is the intention of the MCA to put a stop to the needed action by dropping Tee Keat.

This piece was written soon after the June 1st Cabinet reshuffle 

REMOVING SUBSIDIES

1. Since the report that Datuk Seri Idris Jala had announced that the country faces the possibility of going bankrupt if the Government continues with the high subsidies to various items, there has been much concern and debate.

2. The Malaysian Insider claims that UMNO has a distaste for subsidy cuts because it has rebuked Idris. I suppose the Insider and the opposition are all against subsidy cuts even if they lead to Malaysia going bankrupt.

3. Everybody must have read about the fate of Greece whose borrowings exceeded its GDP. The European Union has had to bail out Greece to the tune of 300 billion Euro to prevent it from going bankrupt and pulling down the European Union with it. Already the Euro has depreciated substantially and many are predicting the demise of this European common currency. The European economy, once powerful and rich, faces the possibility of a recession, simply because of the bankruptcy of one of its members.

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GAZA AID CONVOY

1. The Israelis claim that the activists on the M.V. Mavi Marmara had attacked their commandos with guns, iron rods, scissors and pointed sticks.

2. The last time Free Gaza sent a small boat to take relief supplies to Gaza, Israeli commandos boarded it and towed it to Ashdod.

3. The activists must know that the same thing might happen to them. But it is ridiculous to suggest that the civilian activists planned to fight against the well-armed and well-trained Israelis.

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SHORT SELLING

1. Some people in Malaysia particularly those involved with the stock markets seem keen to legalise what is called “short selling”. Basically short selling is about selling shares or currencies or other assets that the seller does not have with the expectation that the sale would push the prices down. Once the price is down the seller would then buy to deliver to the earlier buyers he had sold to at a higher price.

2. Short selling is not speculation. It is manipulation of the market with almost certain success to be had. Other investors or buyers would lose money as they would be left holding the devalued shares or money or whatever.

3. Malaysia had banned short selling in the past. We regarded it as unfair and damaging to genuine investors.

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ISRAEL THE ROGUE STATE

1. I am horrified at the violence employed by Israel to stop the ships from carrying humanitarian supplies to Gaza (read here). The ships are in international waters, yet the arrogant Israelis do not care to respect international laws and convention.

2. The claim that the people on the ships are carrying sharp objects is ridiculous. Are they going to fight the well armed Israeli soldiers with sharp objects?

3. Do Israeli soldiers shoot to kill people carrying sharp objects? The act is most cowardly and deserving only of brutes, not civilised people.

4. What kind of world are we living in when it allows a rogue state to use violence and killings against unarmed people on a mission of charity.

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PEKERJA ASING

1. Kita kerap mendengar berkenaan pekerja asing menutup peluang pekerjaan pekerja Malaysia. Saya amat bersetuju pekerja asing tidak dibenarkan masuk negara kita supaya pekerja kita dapat cari makan dengan mengisi tempat-tempat yang dikosongkan oleh pekerja asing.

2. Memang benar pekerja asing menyebabkan wang Malaysia mengalir keluar. Katanya tiap bulan satu bilion ringgit Malaysia dihantar oleh pekerja asing ke negara mereka. Ini boleh menjejaskan kewangan kita. Kita dapat selamatkan wang ini jika pekerja kita yang mengisi semua jawatan-jawatan dalam negara.

3. Walaupun saya bersetuju dengan dasar Kerajaan tidak membenar pekerja asing masuk Malaysia lagi, saya telah didekati oleh peniaga dan pengusaha Malaysia dan asing supaya dilonggarkan sedikit dasar ini.

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BAKUN

1. The Bakun hydroelectric project promised to be the biggest power project with the cheapest electricity price. So I was told by the Sarawak Government when I made my first official visit to the State.

2. It could produce 2,400 megawatt, but Sabah and Sarawak needed just about 1,000 megawatts even in the 1990s. The question was what to do with so much electricity.

3. Bringing it to the Peninsular would need 600 miles of undersea cables. This has never been done anywhere . The longest was only 200 miles. It would cost as much as a power station in Peninsular Malaysia. To use in Sarawak we would have to have a power-hungry industry.

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RATING AGENCIES

1. We are not conscious of it but the rating agencies have apparently become a factor in the failures or success of businesses and even whole countries.

2. Their rating can make or break even big corporations. A huge European corporation finds itself unable to invest for fear that it would be downgraded and its shares would plunge. The losses would run into hundreds of millions.

3. Perhaps the rating agencies were only doing their job – letting the investing public know the situation the corporations are in. But they can be wrong or they can be influenced.

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DOW JONES

1. I don’t play the stock market but I cannot think of anything more silly than computer programmed buying and selling of shares.

2. The program can work if only a few players make use of it. But when the program is available to tens of thousands, then their concerted programmed buying and selling will surely affect the market.

3. Simultaneous buying by thousands of players will push up the prices very high while simultaneous selling by tens of thousands would push down the prices to extremely low levels.

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