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US Financial Tsunami

I could not believe myself when heard one of the largest insurance company in the world going to bankrupt. But Malaysia AIG and AIA had issued a statement that the Malaysia based company is still going strong.

fed help

AIG nearly declare bankrupt if not saved by FED. All these happened because they do not have enough capital to sustain. AIG has many different business groups around the world, if FED doesn’t help them, AIG bankrupt, the Investor & Customer will suffer and eventually will directly impact to FED also. People no money and can’t pay the tax; at that time will be serious economic crisis.

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September 21st, 2008 | 1 Comment

Property Price Going To Drop?

I’m planning to buy a house this year, but people said that I must wait as there might be recession and property price might drop. Is that true? Cause I wonder since everything’s price are going up. How is property going to drop?

Property Price

All developers have increased their prices by 20 - 30% since their material cost (steel and cement) has increased. If they don’t increase their prices, they are building houses for free.

So if you’re buying 300k condo, most probably 200k goes to the location and the building material only cost 100k.
Even got increase also 100k X 30% instead of 300k X 30%. Somehow I may suspect that the developers are taking advantage of current situation to increase their profit as well.

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August 29th, 2008 | 1 Comment

Fuel Price Hikes May Cause Inflation Jumping

Fuel Price Hikes !!! Salary Still Same !!! How to Survive ?

05 June 2008 was a bad day for all Malaysian since the fuel price increased again and it gives me a big SHOCK after the news released officially from TV channel and Internet breaking news. It’s increased from MYR 1.92 (per liter) to MYR 2.70 (per liter), approximately 41% amazing increased.

My Case

Vs

Others Case

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June 6th, 2008 | 6 Comments

US Economy Recession

US news

Back to 97/98, we know that there is no US recession but actually is our Asia’s biggest hit on recession. US recession only comes in 2001 due to the sub prime mortgage issue and it slows down our economy also.

How will it affect Malaysia in terms of:

- Jobs

- Economy

- Stock Market

 

Job

Generally, the toughest part in recession is out of job as production doesn’t need to sustain the additional cost in maintaining job progress. It’s because demands will become lesser and minimizing the burden is a wise choice for companies to sustain.

Btw, the top of management is usually the first to go during bad times. Why? Because it’s cheaper to hire 2 or 3 people than to sustain. So meaning to say that you’re good than you’re safe in this hard cruel world since potential employee can bring good progress to the organization.

Micro electronic sector is the most affected since that is what we export to the US markets the most. It would definitely affect internationally as you know if US stops or reduce importing, its’ trading partners will suffers. Thus, anything happen in US is reflective in other country.

Currency

US economy is in unstable currently. It may not a good news for those people making money from internet (like me) since exchange rates of USD quite low. We should stop quarrelling about recession since nobody knows when it’s going to happen. The important is work hard and smart to make yourself indispensable to your employer. Switch company if you don’t see much prospect in your current career.

 

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March 9th, 2008 | 8 Comments

Oil War

Malaysia Fuel Price 

As you known, current petrol price is RM1.92 per liter for RON97 petrol and RM1.88 for RON92. Diesel is RM1.58 per liter now. But lets me emphasize about this issues more in advanced before nation election since I can foresee what will be happened next…

For my situation, even 2 wheels Honda with approximately 5.5 liter fuel tank would cost me >RM5 to fill up now. With about 5-7 fill-ups a month. Are you confusing with 2-wheels Honda? Haha…It’s Motorbike Honda EX 5 la…

If fuel price continue increased for the following years, then may be I will use bicycle to do my errands. As u known, petrol prices ALWAYS go up, but car prices and taxes NEVER drop down. NO balance, somebody gotta import civic hybrid or Toyota prius instead.

It’s inevitable, we can complain day & nite, but its a worldwide move, everywhere prices of petrol goes up, that’s why this is the most headache part for the car’s driver, thus try don’t buy a thirsty car!

The greatest downfall of our nation is “Malaysians tak apalah boleh makan cukuplah”. If they still maintain this kind of attitude, then it’s time for them to change! If not, more challenging life will be coming soon.

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January 27th, 2008 | 9 Comments

Economic Downturn Attack on February 2008?

Several reasons:

1. All prices going up: oil, chicken, property, wheat, etc. Needs Economic downturn to stabilize the price

2. China market and shares keep going up and up continuously..Most people in China can make money easily by involving in the market share…this is a bad news to the world..Therefore economic downturn is needed for China market retracement

3. Both above happened in 1997, right before economic downturn. Hint for the next economic downturn? 2008?

4. US foreign exchange (the biggest currency player) is too weak…keep going down..

5. Economic downturn happened every 10 years for market stabilization/retracement: 1987, 1997, and then 2008?

6. Market will go up during Chrismas and Chinese New Year, then it is the right time to have economic downturn on February 2008?

Just wait and see..

November 5th, 2007 | Leave a Comment

Malaysian’s Financial Issues

I agree with what is actually going on in our country. Most of us spend more than what we can afford.

Everything in Malaysia is expensive. For example, the cheapest car 600cc Kancil is about RM25, 000 while a similar car in the US is only US$8,000. The Government always says that the cost of petrol! But a full tank for a 1,800cc car only costs US$35 while for a similar car in Malaysia it is RM80.

High-speed Internet Streamyx at the lowest speed cost RM50 while it is only US$30 for 1.5Mbps.

A laptop, which costs about US$800, is sold at RM2, 000 in Malaysia.

The average price of a house in the US is about US$250,000 for a 1,700 sq ft bungalow compared to RM200, 000 for a 1,200 sq ft terrace house in Malaysia.

With all this debt and burden, how can you expect Malaysians to retire at 55? In most households, the husband and wife have to work so that they can support their family.

Honestly, I think it’s very true that Malaysia has so many Stupid taxes and so on. I tried to point out that many Malaysians always convert and that is why they say the UK is expensive. In fact, the cost of living is much cheaper than in Malaysia.

One good example is Singapore.

Singaporeans (average) earns around S$3000 to S$4000 and nearly everything is half the price of Malaysia, e.g. clothes, computer parts, electronics, etc. But the average Malaysian still earns RM$2000 plus and goods are double the price of Singapore.

How difficult it is to survive in Malaysia depends on your lifestyle. Obviously if you’re a clubber you spend more money than those who are not. If you’re a gamer who wants the best in computer hardware, it would also cost you a bomb. If you can’t fit your lifestyle into what you can afford, it doesn’t matter where you live, you’ll have a hard time of surviving.

For me, it’s still easy to survive in Malaysia since there’s no war, no natural disasters, imagine you are Iraqi or Palestinian; you lived in fear even though you are rich. But it’s no doubt it’s hard to live a comfortable and basic luxurious life in Malaysia and you can’t compare Malaysia with western country, the industrial revolution started way back even before Malaysia gain the independence.

While Singapore is located in a VERY strategic location between the shipping trading between the east and west, the money they get from the shipping industry is enough to overtake the income we earn from our natural resources, plus their country is small, there’s no need to allocate government monies to several different states like we do, the people are hard working, they got lots of successful recipe. But we are still under development; Malaysia is not even 100 years old yet, so give it some time, work hard, so our kids won’t complaint. Haha…

To be continued…

September 27th, 2007 | 2 Comments

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