Happy Ox New Year 2009

Happy new year 2009 and wishing everyone enjoy it (Recession year).

2008 is like a roller coaster, up & down. We went through the hell of fuel price increased and then dropped to the bottom in last 3 months. We had our CPO increased to nearly RM4300 per mt to almost RM1600 per mt now. We saw the arrogant BN land slide victory in 2004 of controlling 92% MP seats to a total disaster of loosing 5 states (Kelantan, Kedah, Penang, Perak, Selangor) and lost 2/3 majority in Parliament. We also saw how our ex-minister of health left the political arena in January 08 and came back to main stage in 4th Q of 2008. We saw how Anwar came back to Parliament and 2nd version of Sodomy charge. We also learned something on ISA that can be used to "protect" rakyat. We have many more things happened in 2008 in this Boleh-Land. Too tired to write all......

But the most touching moment for me is participating and watching the took-over of power of Penang government in 308 general election by DAP-lead-PR.

So 2009, a challenging year ahead, must work with extra sweat & effort. And i got extra mouth to feed later this OX year as well. You know what i mean?

Freedom in Malaysia?

Just to tell you a secret. My Middle-East neighbourhood has found their "freedom" in Malaysia. I was never believe it when people told me about the "freedom" they are enjoying when out of their home coutries. To be honest, i never know which country they come from, but for sure Middle East.

One find day, myself and HH was sweeping the floor near the staircase. I noticed a full naked man standing at the balcony hanging his cloths. A day before this, his wife (should be) also hanging the cloths at the balcony but of course not naked, yet only with bra and panty!!!

Are they so "open", huh? Just can't believe it! Even Malaysian can't "perform" till that level, can you?

PFS stamps still popular

I felt the same thing, PFS should be one of the school in the latest First Day Covers and Stamps issued in this month, even though i am not a pure Free. As the oldest school in the country that produced so many talented personnel, i feel proud to be part of the "family" during my study days from 1995 - 96.


News from The Star:

GEORGE TOWN: Stamps and first-day covers featuring the 192-year-old Penang Free School (PFS), the oldest school in the country, continues to be popular with collectors.

In 1966, the 20 sen and 50 sen stamps and first-day covers featuring the school were issued to commemorate the school’s 150th anniversary and according to stamp dealer Lee Soon Seng people are still asking for them today.

The stamp features the school’s majestic white building against a clear blue sky and green surroundings.

“A few years ago, I sold off my collection of 100 sets of the school stamps but customers are still looking for them now.

“I had to source them (for my customers) from the United Kingdom, Canada, New Zealand and Australia because many foreigners from Commonwealth countries studied at the school and they had bought the stamps and first-day covers as their personal collection,” he said.

He added that Pos Malaysia Bhd should honour the school with new stamps as it had been over 40 years since the school appeared on a stamp.

“I have no doubt it will be popular if Pos Malaysia comes up with a new design featuring the country’s oldest school,” he said.

Pos Malaysia Bhd’s choice of four premier schools for its first-day covers and stamps recently had drawn flak from former PFS students when the school was not selected.

Some of them said that the school had great historical bearing and significance and had produced great leaders, sportsmen and academicians.

The four schools featured were SMK Victoria and SMK Convent Bukit Nanas in Kuala Lumpur, SMK St Thomas in Kuching, and SM All Saints in Kota Kinabalu and the stamps and first-day covers went on sale from Dec 16.

Stamp dealer Mohamed Abdullah, who agreed that the stamps on the school would be popular, said the covers which were sold at 80 sen per set in 1966 now cost between RM30 and RM50 each.

Fourteen-year-old Penang Free School student Josh Chen said he was disappointed that the school was left out, adding that it would have inspired more of his friends to start collecting.

尘封52年后槟再次迎接 “乔治市城市日”

二零零八年十二月二十一日 晚上七时三十分

（槟城21日讯）阔别52年之久，槟州政府决定再度庆祝1月1日“乔治市城市日”！

据了解，槟州市政局在槟州民联政府的指示下，将在下周四（2009年1月1日），首开先河举办“乔治市城市日”，以纪念英女皇依丽莎白二世于1957年1月1日，颁布城市地位给乔治市。

这项荣誉对于当时逾23万4000名乔治市居民而言，这是件非常引以为傲的事。但是，自此之后，槟城就再也没有举办过任何庆祝仪式了。

原因之一是自从70年代政府废除地方议会的民选制度后，乔治市被纳入槟岛市政局的管理区之一，自此，其城市的地位即开始变得模糊。

但为了配合乔治市连同马六甲以“马六甲海峡的历史城市”，成功列入世界文化遗产名录后，槟州政府打算把握这“最佳时刻”，重新庆祝属于乔治市的大日子。

换言之，即将于明年1月1日举办的“乔治市城市日”，可谓是自1957年大马独立以来，首个举办庆祝乔治市被颁布“城市地位”（city status）的活动。

据本报了解，此次的纪念庆祝会，虽然仅以非正式形式进行，但筹划单位也费尽心思地，决定回到52年前的“老地方”庆祝，以纪念独立后最别具意义的第一次。

而这个“老地方”正是早在1885年英殖民时代兴建的－－依恩奥酒店。

回到半世纪前 回到依恩奥酒店

身为“乔治市城市日”筹委会主席的拿督再纳拉欣，接受《光华日报》访问时披露，当年（1957年）乔治市获得英女皇依丽莎白二世颁布“城市”地位时，正是在拥有超过百年历史的依恩奥酒店内，作出这项宣布。

“半世纪以前，在古色古香的依恩奥酒店庆祝乔治市获颁布城市地位；半世纪以后，再度回到同一间酒店，重温升格为“市”的光辉事迹，应该还不错吧！”

再纳拉欣说，此次，市政局希望回到“老地方”，除了藉此回顾当年获颁城市地位时候的情景、缅怀当年槟城人的骄傲时刻之余，其实节省开销也是主要原因之一。

“州政府已在12月31日举办的大型跨年倒数派对中，花费了不少钱，如今在金钱上的考量下，市局不打算耗费巨额举办庆祝会，毕竟在户外举办活动的开销是相当庞大惊人的；再者，筹备时间略嫌仓促，为此，我们决定只举办小型庆典。”

届时，槟州元首阁下敦阿都拉曼阿巴斯伉俪，也会莅临主持这项简单又不失隆重的盛会。

再纳拉欣补充道，“该局已计划在2010年筹划一场大型的庆祝会，届时料在12月31日倒数活动中，与民一起庆祝迎接乔治市城市日。”

城市地位不变

槟岛市政局主席拿督再纳拉欣受询确定地说道，自从1957年乔治市获颁布城市地位以来，从来就未有被人“褫夺”其地位。

“为此诚如掌管地方政府的曹观友行政议员日前所说的，根本无需再向房屋及地方部提出申请。乔治市的‘城市’地位始终不变！”

市局秘书兼筹委会副主席陈清水接受《光华日报》访问时，也再三强调乔治市“城市”的地位由始至终都未受动摇的事实。他说，早前关于乔治市的城市被“降级”之说法，其实是不存在的。

他举例道，就如同目前的槟城，它不再由国阵执政，但由民联执政的槟州难道就不属于大马的州属之一了吗？“当中的道理，就跟乔治市‘城市’地位的事实是一样的。无论由哪个单位管辖，它依然保留原本的地位。”

他指出，此次的庆祝活动，对槟城而言算是一个新的开始，同时希望藉此可让世界更认识乔治市。

市不市的尴尬

乔治市早在1957年1月1日升格为市（City），马来西亚第一个升格为市的城市。

但是，1976年新的地方政府法令生效后，乔治市市议会与槟岛乡镇议会合并，成了槟岛市政局（Penang Island Municipal Council）。

自此，乔治市的地位就开始模糊，甚至被误以为其“City status”已不复存在，一度陷入“市”不“市”的尴尬。

但自从今年7月7日，乔治市连同马六甲以“马六甲海峡的历史城市”，成功列入世界文化遗产名录后，乔治市再度成为世人的聚焦点。

民联政府曾在执政3个月后，表示将成立工作委员会，处理乔治市申请升格为市的事务，当时，槟州地方政府委员会主席曹观友指出，有关委员会会在成立的3个月后，提呈申请升格为市的计划书。

但在11月中旬，曹观友向媒体指出，州政府已放弃申请乔治市升格为市的申请，原因是乔治市早在1957年就已是城市，为此无需重新提出申请。

NS ruler Tuanku Ja'afar dies

News from The Star:

SEREMBAN: Negri Sembilan Yang diPertuan Besar Tuanku Ja’afar Tuanku Abdul Rahman, who was the nation’s 10th Yang diPertuan Agong from 1994 to 1999, died at about 11.45am Saturday. He was 86 years old.


More news from Malaysiakini.

Merry X'mas

Merry X'mas to all people......Enjoy the holiday, stop working for one day.

BURSA Down Again

It happen again now that BURSA is "interrupted" status. Meaning can't perform any trading of stocks.

What a double let down! Happen twice in this week!

Bangkok City (1)

Recently went to Bangkok for some presentation cum auditing programme at Maha Sarakham province. It is winter time in the north Thailand, that is why the temperature is around 20C in the morning and drop below 20C at night. Never experience such a cool weather at lower ground. One thing i discovered in Thailand is that the height of the door for toilet is very short. I think 5' 6" maybe. Pelik......

More story soon, on transportation and travelling system in Thailand.

Here are some of the photos taken in Bangkok.

Siam Paragon Shopping Complex
Sim in Love

X'mas mood in Bangkok

Bangkok city view 1

Bangkok city view 2

PC Bottles

More and more research done on this plastic material (Polycarbonate) and it seem like more bad news appear. It's also means that my son feeding bottle also not "healthy" as well his drinking bottle.

Must ask him to use cup to drink milk instead of feeding bottle. But about the young small baby? This is why we practice changing the feeding bottle after 3 months as we always "sterilise" the bottle daily. OK, use back old generation's way - Glass feeding bottle. But please ready it 10 pieces, the baby might break it anytime after they finish it!

PC bottle tend to release some chemical bisphenol A (BPA). BPA has been linked with health problems such as impairment of reproductive organs and tumour formation. It is also "environmental hormone" which disrupts the endocrine system of humans and animals. Sound scary right!!

How to know it PC bottles? Look for the label of "triangle with a 7 in it" at the bottom of the bottles. Good luck!

BURSA Trading Forbidden

Update:

Back to trading on ~3.05 pm.

Some what ever technical problem, BURSA Malaysia is not able to trade starting from 2.30pm till now....... What a let down again by BURSA, i think the 3rd time in this year.

Need a better software maybe?

Jakarta Indonesia

That was my first trip to Jakarta as i am having some CDM projects in Sumatra, Lampung Province. The city is very jam even though there are so many lanes, 3 on each side with additional 3 on each side in the process of construction. A total of 12 lanes in the near future.

But in this trip i didn't have time to walk around in the city. Anyway, i will make sure will do it in 5th of Jan 09.

Some photo to share.

Anchor in Indonesia

Internationl Airport of Jakarta

City of Jakarta

DOE, myself & colleague, Client

Planet Hollywood

Original Padang Food in Sumatra

Monday, December 15, 2008

Petrol Price Drops

Tomorrow will become RM1.80 / liter. Way to go to Rm1.50 / liter.

Wednesday, December 03, 2008

Nikon D3X

New camera D3X from Nikon for Pro! Comparing this monster with other dSLR of Nikon. I think the price might be more than 25k i guess.

Key features:

-Nikon FX-format CMOS sensor with 24.5 megapixels
-Wide sensitivity range starting at ISO 100
-New EXPEED-based image processing
-High-speed performance meets the most rigorous professional demands
-Realizing reliable auto control: Scene Recognition System
-AF system employing high-density 51-point AF
-Superior durability
-High-resolution 3-inch LCD monitor with approx. 920k¬-dots (VGA), 170° wide-viewing angle and reinforced glass
-Two Live View modes available
-Picture Control System
-Active D-Lighting — reproducing brightness as you see it
-Electronic virtual horizon
-UDMA-compatible memory card double slot
-GPS Unit GP-1 (optional)

Tuesday, December 02, 2008

Drop 10c Fuel Price

When the world crude oil below USD 50, Malaysia petrol price still only drop 10c only. Seem like our government is really broke now, trying very hard to earn back by what ever mean they can to save Malaysia economic.

Wednesday, November 26, 2008

Christmas Song for 2008

You'd better watch out
You'd better not cry
You'd better keep cash
I'm telling you why:
Recession is coming to town.

It's hitting you once,
It's hitting you twice
It doesn't care if you've been careful and wise
Recession is coming to town

It's worthless if you've got shares
It's worthless if you've got bonds
It's safe when you've got cash in hand
So keep cash for goodness sake, HEY

You'd better watch out
You'd better not cry
You'd better keep cash
I'm telling you why:
Recession is coming to town!

Finance products are confusing
Finance products are so vague
The banks make you bear the cost of risk
So keep out for goodness sake, OH

You'd better watch out
You'd better not cry
You'd better keep cash
I'm telling you why:
Recession is coming to town.

Tuesday, November 25, 2008

OPR cuts 0.25%

It means that i am going to pay less for interest of my housing loan, but also means that my FD interest also drop.

From The Star:

PETALING JAYA: Bank Negara has cut its benchmark Overnight Policy Rate (OPR) by 25 basis points to 3.25% from 3.50%, and signalled it was ready to cut the rate further.

This was the first rate cut in over five years. The move, which can be considered well-timed as the economy slows, will result in a lower cost of funds for banks. This, in turn, brings down the cost of borrowing for consumers.

To inject more liquidity into the banking system, Bank Negara also cut the statutory reserve requirement (SRR) for banking institutions for the first time in a decade - from 4% to 3.5% - effective Dec 1. Read more .......


For Bank Negara reports click here

Monday, November 24, 2008

An Act of Coward

photo from Kwong Wah

Only coward will do that. Anything wrong with the signboard? Narrow minded!!!

GEORGE TOWN: Two signboards with directions in Bahasa Malaysia and Arabic were defaced with red paint, barely 48 hours after they were put up at Lebuh Acheh on Friday.

Try Qi Gong

If Yoga is not allow to practice by Malaysian muslim brother & sister, then maybe they can practice Qi Gong from China instead on India, to live healthy in this Boleh-Land. I believe Qi Gong will not influence muslim to change their faith, unless some one from lacal university can prove it will, again..... as you know, this is Boleh-Land!!!!

Friday, November 21, 2008

Crude Oil Below USD 50

Crude oil closed at USD 49.62 yesterday, so is Shahrir still insist to put the minimum fuel price of RM1.92/liter? Fair to us when the actual price is below RM1.62/liter. I don't mine if government want to recover some "loss" due to the subsidy they paid to us, but not setting the minimum selling price. What is crude oil drop to USD 40 per barrel?

Wednesday, November 19, 2008

Ka Chuan Resigns

Since "Kankong" combination become the new leaders in MCA, MCA never has a peaceful time. With open quarrel between Ong and Chua as Chua seem to be neglected in the party though he is 2nd man. Now Ka Chuan resigns as minister, what is next?

They need more time to talk......

Tuesday, November 18, 2008

10% discount for night riders at PLUS

Good news for night riders at PLUS. It is between 12am till 7am. Read more details in Malaysiakini report. But to travel to work seem still too early unless you wanna sacrify your sleep and avoid the jam! Why not start the discount after 8pm to encourage people to work more while able to avoid peak hour jam between 5 - 8pm.


Passenger car owners will now enjoy a 10 percent discount for traveling between midnight and 7am on the North-South Expressway (Plus) and North-South Expressway Central Link (Elite).

At a joint press conference by Plus and the Works Department this morning, it was also announced that during the festive season, motorist traveling during the same non-peak midnight-7am period would receive an additional 10-percent discount.

A six-day additional discount period will take effect during festive seasons like Hari Raya Aidilfitri, Chinese New Year, Deepavali and Christmas.

It was also announced that users of the two highways who spend more than RM200 would be given an additional five percent rebate. This is, however, limited to Touch N' Go card holders and Smart Tag users.

The new system will take effect from Jan 1, 2009 and end in Dec 31, 2010.

南北大道公司（PLUS）今日与工程部联合召开新闻发布会，宣布3项优惠给予上述两条大道的轻型车辆或私家车主：

1）轻型车辆（一级轿车）在凌晨12点到早上7点的非高峰时段，可以获得10%过路费折扣。

此优惠只限2009年1月1日到2010年12月31日。

2）4大佳节期间，包括开斋节、华人新年、屠妖节及圣诞节期间，从凌晨12点到早上7点的非高峰时段使用大道的轻型车辆，将额外获得另外10%的过路费折扣。

此优惠只限2009年1月1日到2010年12月31日，处于大道公司所择定的6天佳节期间。

3）每月至少使用200令吉的大道使用者，将会获得5%的过路费折扣。

此优惠只限向南北大道公司登记的顾客，从2009年1月1日落实，对象是“一触即通”卡和精明通行卡（Smart Tag）。

Highway contracts to be declassified

Finally it happens, after the 308 General Election, after Mr Samy lost his Sg Siput seat, after BN suffered the greatest loss. Read more on MalaysiaKini.


All highway concession contracts, except for the KL-Putrajaya Expressway (KLPE), will be declassified, said Works Minister Mohd Zin Mohamad.

MCPXSpeaking at a press conference this morning at the Works Department headquarters in Kuala Lumpur, Mohd Zin said the cabinet decided on the matter on Oct 17.

Following this, the government managed to obtain an agreement on the declassification from all highway operators except Maju Expressway Bhd, which manages the KLPE

Asked if Maju Expressway had refused to comply with the cabinet directive, Mohd Zin said he was unsure, adding that the company had yet to reply.

He assured that the declassification would take place by Jan 1 next year at the latest. However, it has been undecided if members of the public would have to buy the documents or would be able to read it for free.

Opposition parties have often criticised the government for the clandestine nature of the highway agreements and leaked documents have often pointed to ‘lop-sided' contracts which benefited concession holders.

Monday, November 17, 2008

Lampung, Sumatra (2)

Day 2:

Start my busy travelling schedule. Wait up at 5am as i still used to the Malaysia time, Sumatra and Jawa is one hour earlier than Malaysia. Surf some net, checking my email. Go to lunch at 7 am and left hotel at 7.45am. It is a nice and peaceful hotel, Sheraton. However, to enter the hotel area, cars need to be scanned for any bomb threat.


The journey took 3 hr to reach the site and 3 hour is equivalent to <100km superb over taking skill, i think the journey will took more than 4 hr then.


Spent some time at site, eating groundnuts and mandarine oranges while auditing. Then go to bath under the hot sun for hour, checking the ponds, bioreactor and get to know how is soya plant look like.


Finished the audit and took another 3 hour journey back to city. Took our dinner at hotel, sea foods!


Night live in Lampung? Not really know, but i think the city is not really alive at night as to compare to Jakarta.

At least i saw the Poorest and the Richest, great different in wealth distribution. Imagine you need to sell 22 kg (~ 5,000 rupiah) of ubi kayu to enable you to buy a High-5 type of bread while in Jakarta, people are eating a 100,000 Rupiah dinner which is equivalent to > 1/9 of total income for rural folks in a month.

Thursday, November 13, 2008

Lampung, Sumatra

Still wondering in Lampung, Sumatra and will fly to Jakarta on Thursday evening flight. The travelling schedule is killingn me.

Day 1:
From my Serdang house, took my taxi at 8.20am, boarding at 10.45am and reached Jakarta international airport 2 hour later (12.00 pm Indonesia time). Took a shutter bus to domestic airport, FOC. Wait for Sri Wijaya air for Lampung, Sumatra at 4.40pm. In the airport, a lot of kids asking for shoes polishing services, i means they are young kids, less than 10 maybe, not going to school, or too poor for school. Also there are people selling buaya L**C***, that is the word he used when approaching us.

Reached Lampung 25 min later and jammed all the way to city (40 min). The driver has a special skill, he will never stop overtaking vehicles infront of him, no matter is uphill, downhill, left or right corners, "double line"...... Superb, but just kesian the motor bike drivers, always kena squeze left and right. Furthermore, these bikes always carry baby with them and drive very slow while the cars are farking fast.

Free shutter bus
5,200 rupiah only = RM 1.80
waiting for my transit flight
From Jakarta to Sumatra

Wednesday, November 12, 2008

Crude Oil Below USD 60

Crude Oil today below USD 60 per barrel at USD 58+, so are we expecting another round of petrol price reduction in this mid November (end of this week)? A BIG one?

Wait & See, the ball is now with our Cakap-Tak-Serupa-Bikin-minister.

Monday, November 10, 2008

Off to Jakarta & Lampung, Sumatra

I will fly to Jakarta later 10.45am and transit to Lampung, Sumatra in the noon and will spend 3 days there. Shall be back to Jakarta on Thursday evening, meeting on Friday and fly back to KL at night.

What a tiring trip, imagine just back from Sabah days ago. Anyway, i am a bit excited to be truth since this will be my 1st trip to Jakarta, a BIG city compared to KL in term of population, not sure about facilities, let me check it out dude. Any pesanan from you guys?

Photos - Around my house

Every time i go back to hometown at Batu Ferringhi, i will take a lot of photos from insects till the building structures as i know soon this will become a memory only. But somehow, it still not happen yet. My kampung supposed to be cleared out and high end condo/bungalow will be built. Maybe again & again the economic crisis slowing down to process (since i was in Uni time). For my own reason, i hope this will not happen....... Batu Ferringhi somehow need to preserve its original style, the kampung style......

Cousin's Wedding

One of my triplet cousin just married last week (31st Oct Dinner, 1st Nov Ceremony)in Penang. Congratulation to her. My HH also very excited for this trip back to Penang where he can played with the cats and behave like a kampung boy. Somehow we don't have time for the hiking that i want to do. Next time la.

Saturday, November 08, 2008

RPK Freed

Congratulation to RPK and it is a vistory to all Malaysian except BN. In the same time Anwar's case will continue to be heard in Sessions Court.

In the mean time, more groups are asking Syed Hamid to resign, as abusing of power!

Thursday, November 06, 2008

At Tawau now

Off to Tawau this afternoon for a stakeholder presentation and shall be back to KL Friday night. Had my dinner at one of the seafood restaurant........ See the foods i ate!

Wednesday, November 05, 2008

In these troubled times do you hold stocks or cash?

From The Star:

the past few weeks, as a result of the sharp plummet on the stock market, some investors regret not selling their stocks early as almost all of their stocks have been incurring huge losses.

However, the market recovery over the past few days caused some investors to again regret — not buying stocks when the market hit the bottom.

The decision to hold more cash or stocks is one of the most difficult decisions to make.

According to a study by Gary P. Brinson, L. Randolph Hood and Gilbert L. Beebower in 1986, 95% of the variance of fund returns was the result of the asset allocation decision.

Hence, the right asset allocation between cash and stocks plays a very important role in determining the returns of a portfolio.

In this article, we will look into two key strategies in asset allocation, namely the constant mix (CM) and the constant proportion portfolio insurance (CPPI) strategy.

The key principle behind the CM strategy is to buy stocks when the market drops and sell them when the market recovers.

As for the CPPI strategy, it is the reverse, which is to sell when the market plunges and buy when it recovers.

We should continue selling stocks until the portfolio drops near our pre-set floor level. Once the market touches our floor level, we will hold all cash and no stocks.


Under normal market conditions, the CM strategy is an excellent tool for rebalancing our portfolio.

This strategy requires us to rebalance our portfolio based on a constant mix, where we set a constant ratio of stocks to total assets.

Assuming we have only two asset classes, namely stocks and cash, we will maintain the desired invested portion in our portfolio regardless of market conditions.

If we have a portfolio value of RM100,000 and intend to maintain a stocks to total asset ratio of 60%, we invest RM60,000 in stocks and hold RM40,000 cash.

If the overall market drops by 10%, our stocks will drop by RM6,000 (10% of RM60,000) to RM54,000. Now, our portfolio will be RM94,000 (RM54,000 + RM40,000 cash)

Our invested portion will drop to 57.5% (RM54,000 of stocks divided by our new portfolio value of RM94,000).

In order to maintain a 60% investment, we need to have an invested portion of RM56,400 (0.6 x RM94,000).

So we will use RM2,400 in cash to buy stocks (RM56,400 - RM54,000).

After this portfolio rebalancing, our new invested portions will be RM56,400 in stocks and RM37,600.in cash.

This will bring the invested portion back to 60% with the total portfolio value of RM94,000.

The CM strategy will cause us to buy more stocks when the market drops. We will be able to acquire a lot of quality stocks at cheap prices.

However, we will continue buying more stocks while the overall market continues to plunge.

During a bear market, we will see our portfolio shrink in value as our earlier purchase price may get cheaper.

Unfortunately, not many investors can tolerate a drop in their portfolio value.

The CPPI strategy is appropriate for use in either a super bull or a super bear market.

It is not suitable for use on normal market periods as we need to sell stocks when the market drops and buy when the market is on the way up.

We may end up buying at high prices and selling them at low.

Under the CPPI strategy, the portion of money in stocks is based on the formula that:

Money in stock = M x (TA - Floor) Where M = stock investment multiplier (proportion), TA = total assets held in the portfolio, Floor = the minimum allowable portfolio value (zero risk level) and TA - Floor = cushion or funds that can be put at risk.

Assuming we have a portfolio value of RM100,000, if we set our minimum allowable value (Floor) = RM70,000 and stock multiplier (M) = 2, we will invest RM60,000 in stocks [2 x (RM100,000 – RM70,000)].

If the overall market drops by 10%, our stocks will drop by RM6,000 (10% of RM60,000) to RM54,000. Our portfolio will be RM94,000 (RM54,000 + RM40,000 cash).

Our invested portion needs to be reduced to RM48,000 as 2 x (RM94,000 – RM70,000).

We need to dispose of RM6,000 worth of stocks (RM54,000 – RM48,000) and bring the cash level to RM46,000.

Following this portfolio rebalancing, the portion invested in stock is RM48,000 with cash of RM46,000.

The total portfolio value is RM94,000.

We will continue to sell stocks and hold more cash as the market drops.

We will stop investing in stocks when our total portfolio hits the floor level (TA – Floor= 0).

The strength of the CPPI strategy is that our lowest portfolio value at any point in time will be RM70,000 whereas the CM strategy may cause our portfolio value to drop much lower if the market crashes further.

In conclusion, the choice of strategy will depend on the overall economic outlook.

Unless we know our economy will not drop into recession, otherwise — based on our current situation, the CPPI strategy has the advantage of protecting our minimum portfolio value at the floor level.


Ooi Kok Hwa is an investment adviser licensed by Securities Commission and managing partner of MRR Consulting.

Obama The President of USA

Obama won against McCain and will become the next President of America. He is the 1st African-American president of the United States.

Current votes 338 vs 156.

When can Malaysia have this kind of moment of joy where everybody is colour-blind!

Wednesday, October 29, 2008

multi-lingual road signs

Since Penang DAP-lead state government proposed to install multi-lingual road signs at Georgetown, Utusan Melayu and BN politicians start to against the idea claiming it against the social contract, against the spirit of constitution.

Then we should ask Utusan Melayu and BN politicians especially those from Sarawak to check their own Bn-controlled-state, why they installed bi-language sign board in major city? Any problem of installing more than one language? Then ask them to check KLIA airport!

Nothing else to "goreng" now Utusan Melayu, time to boycott the papers!

Morning Jet

Sunday, October 26, 2008

Cakap Tak Serupa Bikin

Sharir Samad said before if the crude oil drop below USD72 per barrel, Malaysia petrol price will back to RM1.92. Now he said petrol price will not drop more than 15c end of this month. Reason is such a drop of that amount will cause sudden losses, especially for the petrol station operators nationwide. The price of crude oil is USD 64.60 per barrel now, the price should even lower than RM1.92 now.

What happened when the fuel price up 78c suddenly, during that time petrol station operators were laughing to bank.......

Cakap tak serupa bikin. Time to change!

Thursday, October 23, 2008

Advertisement

When is your last time to see a bank put an advertisement in the TV asking people to put their money into Saving Account? If i remember correctly, the last time that adsvertised non-stop and continuouosly is MBF and soon after that the bank went into deep shit and took over by Arab-Malaysian.

Somehow someone just told me the story on yesterday morning and at night i noticed that advertisement!

Hmmm.......fishy and worry now.

Crude Oil Drop Further

The world market for crude oil drop below USD 68 per barrel. Is that means we can enjoy lower petrol price of RM1.92?

Wednesday, October 22, 2008

Tax Money Gone

News from MalaysiaKini. This is why KL should be "returned" to Pakatan Rakyat since PR control 10/11 MP seats in KL. Or else this Mayor et. al. will spend the money like no body business. Time to Change!!!!

KL mayor the 'frequent flyer'

Rahmah Ghazali and Fauwaz Abdul Aziz Oct 21, 08 7:42pm

Kuala Lumpur mayor Abdul Hakim Borhan has gone on overseas trips amounting to RM1.329 million - all paid for by Malaysian taxpayers.


MCPX
KL mayor the 'frequent flyer'

Kuala Lumpur mayor Abdul Hakim Borhan is sure to be among the airlines' top 'frequent flyers' for his official trips overseas.

In a written reply to Cheras MP Tan Kok Wai, the Federal Territories Ministry said Abdul Hakim has gone on 11 trips overseas - almost one trip every two months - since taking over the post of mayor in late 2006.

Of these, the transportation costs of only two trips were borne by foreign governments - the rest, amounting to RM1.329 million were paid for by Malaysian taxpayers.

The allowances, meanwhile, provided to Abdul Hakim and the handful of officials who usually accompanied him on the trips - mostly to destinations in Asia - came up to RM133,490.

"The trip that was most criticised by my constituents was the one taken by Abdul Hakim and four other Kuala Lumpur City Hall officials to Canada, UK and Germany.

"Though the trip took only five days, it cost slightly more than RM390,000 in transportation costs and allowances," Tan told reporters at the Parliament today.

阿都哈金上任2年出国公干11次
陈国伟揭隆市长公务团耗150万
李伟伦 10月21日 傍晚6点27分

政府官员再涉滥用公款出国考察丑闻！民主行动党蕉赖区国会议员陈国伟（右图）今日揭露，吉隆坡市长阿都哈金自2006年12月上任迄今，共出国“公干”11次，耗费了公款近150万令吉，或相等于陈国伟3年的选区拨款款额。

陈国伟今日在国会走廊召开记者会，发布他从联邦直辖区部获得的一份书面答复。该份答复列出了阿都哈金上任后，在近21个月的任期内，参与的所有海外公务团详情。

陈国伟表示，他本来准备下议院内提出这道问题，但后来被国会办公室通知，该问题已从第15题问题的排序，挪后至第26题，以致他无法在议院内针对此事辩论。

英德5天公务团耗39万

根据该份答复声明，阿都哈金（左图）曾率领官员出国公干11次，共耗路费132万9197令吉与13万3490令吉的津贴，总额为146万2687令吉。

声明说，市长的海外公干地点包括日本的东京、澳洲的珀斯、阿拉伯联合酋长国的杜拜、土耳其的伊斯坦布尔、英国的伦敦、韩国、菲律宾的马尼拉、中国的上海与北京、泰国的曼谷、德国与加拿大等地。

在11次海外行程中，耗费最多的公务团是今年5月29日至6月8日的加拿大、英国和德国的5天行程，花费39万188令吉50仙。

陈国伟指出，这项加、英、德公务团，也是最为人诟病和投诉的行程，“很多人都怀疑市长和官员带着朋党随行”。

怀疑到土耳其只为肚皮舞

他说，虽然市长声明出国都是公干考察，惟据他所了解，公务团在国外的工作只是蜻蜓点水，更多的是吃喝玩乐。

他甚至怀疑，阿都哈金在去年7月到土耳其“公干”，主要目的是否为了当地著名的肚皮舞。

他表示，由于阿都哈金在上任后的短短21个月，已出国公干11次，因此被下属和市政局官员在背后戏称为“频密的旅行者”（frequent traveller）。

“历届吉隆坡市长经常出国公干已不是一件新鲜事，但阿都哈金的频繁次数，却是有史以来之最。”

再揭荒谬理由请假翘班

陈国伟也揭露，阿都哈金与随行的官员经常在出发前后，以一些荒谬的理由请假，其实主要是偷懒翘班。

他有点气愤地说：“这班家伙都很懒，在出国前2天拿假，说要收拾行李。回国后又说头晕要休息，往往再请假1个礼拜。”

他批评市政府耗费巨资出国，整150万令吉的团费已相等其3年的选区拨款。

形容阿都哈金“生人勿近”

此外，陈国伟也炮轰阿都哈金自上任后，腰斩了历届市长维持每个月会见公众1次的活动，导致市民面对投诉无门的窘境。

他形容阿都哈金就如同“生人勿近”，既不愿会见公众，平时也面无表情，鲜少与市政局官员开会议事。

他说，吉隆坡市政局的2008年财政预算案高达21亿令吉，甚至比被称为“先进州”的雪兰莪州14亿令吉预算案拨款更多，但老问题依然一箩箩，30年来毫无改进。

马青炮轰阿罗街突易名

另一方面，市政局日前把著名美食天堂阿罗街（Jalan Alor）改名为克佐拉路（Jalan Kejora）一事，今天也在国会发酵。

马青总团长魏家祥（左图）在国会走廊召开记者会，炮轰市政局此举毫无建设，反而让外国游客摸不着头脑。

他指出，既然外国游客和国际的旅游网站，都早已熟悉阿罗街的名字，市政局如今硬要易名，无疑缺乏理由与建设性。

家祥：一人得益万人愁

他说，在目前全球出现金融危机之际，市政局更改阿罗街路名，且耗资更换路牌，肯定不符经济效益。

“除了负责更换路牌的承包商外，这件事对谁都没有好处，可说是一人得益万人愁。”

魏家祥说，他已指示联邦直辖区马青分团，向吉隆坡市长阿都哈金提呈一份备忘录，以反映马青的反对立场。

Tuesday, October 21, 2008

Nuclear Energy Soon

Time for a nuclear energy in order to fight Global Warming as no GHG is being released. However safety is the main concern as well as how to treat and disposal the nuclear wastes.

PUTRAJAYA: The paper on nuclear energy as an alternative source of power generation by 2020 will be tabled for Cabinet consideration by the end of this year.

Deputy Science, Technology and Innovation Minister Fadillah Yusof said the paper, which was worked on by both his ministry staff and those from the Energy, Water and Communications Ministry, would also identify the criteria and sites suitable for the location of nuclear plants in the country.

Monday, October 20, 2008

Break 900 points

Seem like the market still waiting for the rescue plan soon to be anounced by Najib. Today market below 900 points. Maybe they are surprise by the way Najib got "surprise" of MCA election results.

Sunday, October 19, 2008

Kuching International Airport

Transit from Miri Airport to KLIA. First time to Kuching, but only limited to her airport and 30 minutes.