HAVE you ever grabbed an offer without any hesitation, simply because the price is too cheap to resist?
Many of us have this experience especially during sales or promotional campaigns. We tend to spend more at the end or buy things which we are uncertain of their quality when the deal seems too good to say no.
It may be harmless if the amount involved is insignificant. However, when we apply the same approach to big ticket items, it can cause vast implications.
Recently, I heard a case which reinforces this belief.
A friend shared that a property project which was selling for RM300,000 a few years ago is now stuck. Although the whole project was sold out, the developer has problem delivering the units on time.
The developer is calling all purchasers to renegotiate the liquidated and ascertained damages (LAD), a compensation for late delivery.
One of the homeowners said he is owed RM50,000 of LAD, which means the project is 1½ years late. When we chatted, we found that he purchased the unit solely due to its cheap pricing without doing much research in the first place.
The incident is a real-life example of paying too low for an item which can leave us as losers, especially when it involves huge sum of investment, such as property.
To many, buying a house maybe a once-in-a-lifetime experience, a decision made can make or break the happiness of a family.
A good decision ensures a roof over the head and a great living environment, while an imprudent move may incur long-term financial woes if the house is left uncompleted.
Nowadays, it is common to see people do research when they plan to buy a phone, household item, or other smaller ticket items.
Looking at the amount involved and implication of buying a house, we should apply the same discretion if not more.
It is always important for house buyers to study the background of a developer and project, consult experienced homeowners regarding the good and bad of a project before committing.
I have seen many people buy a house merely based on price consideration.
In fact, there are more to be deliberated when we commit for a roof over our heads. The location, project type, reputation of a developer, the workmanship, the future maintenance of the property etc, are all important factors for a good decision as they would affect the future value of a project.
Beware when a discount or a rebate sounds too good to be true, it may be just too good to be true and never materialised. If the collection or revenue of a housing project is not sufficient to fund the building cost, the developer may not be able to complete the project or deliver the house as per promised terms. At the end of the day, the “price” paid by homeowners would be far more expensive.
In general, the same principle applies elsewhere. It is a known fact that when we pay a premium for a quality product from a reliable producer, we have a peace of mind that the product could last longer and end up saving us money. Some lucky ones will end up gaining much more.
For instance, when we purchase a car, we should consider its resale value as some cars hold up well, while others collapse after a short period. Other determining factors include the specifications of the car, the after sales service, and the availability of spare parts.
Quality products always come with a higher price tag due to the research, effort, materials and services involved.
In addition to buying a house or big ticket items, other incidents that can tantamount to losing huge sums are like money games, get-rich-quick scheme, or the purchase of stolen cars or houses with caveats.
When an offer or a rebate sounds dodgy, the “good deal” can be a scam.
Years of experience tells me that when what is too good to be true, we should think twice. I always remind myself with a quote from John Ruskin (1819-1900) who was an art critic, an artist, an architect and a philosopher. “It’s unwise to pay too much, but it’s worse to pay too little. When you pay too much, you lose a little money – that’s all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do.
“The common law of business balance prohibits paying a little and getting a lot – it can’t be done. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that you will have enough to pay for something better.”
Food for thought by Alan Tong
Datuk Alan Tong has over 50 years of experience in property development. He was the world president of FIABCI International for 2005/2006 and awarded the Property Man of the Year 2010 at FIABCI Malaysia Property Award. He is also the group chairman of Bukit Kiara Properties. For feedback, please email feedback@fiabci-asiapacific.com.
HAVE you ever grabbed an offer without any hesitation, simply because the price is too cheap to resist?
Many of us have this experience especially during sales or promotional campaigns. We tend to spend more at the end or buy things which we are uncertain of their quality when the deal seems too good to say no.
It may be harmless if the amount involved is insignificant. However, when we apply the same approach to big ticket items, it can cause vast implications.
Recently, I heard a case which reinforces this belief.
A friend shared that a property project which was selling for RM300,000 a few years ago is now stuck. Although the whole project was sold out, the developer has problem delivering the units on time.
The developer is calling all purchasers to renegotiate the liquidated and ascertained damages (LAD), a compensation for late delivery.
One of the homeowners said he is owed RM50,000 of LAD, which means the project is 1½ years late. When we chatted, we found that he purchased the unit solely due to its cheap pricing without doing much research in the first place.
The incident is a real-life example of paying too low for an item which can leave us as losers, especially when it involves huge sum of investment, such as property.
To many, buying a house maybe a once-in-a-lifetime experience, a decision made can make or break the happiness of a family.
A good decision ensures a roof over the head and a great living environment, while an imprudent move may incur long-term financial woes if the house is left uncompleted.
Nowadays, it is common to see people do research when they plan to buy a phone, household item, or other smaller ticket items.
Looking at the amount involved and implication of buying a house, we should apply the same discretion if not more.
It is always important for house buyers to study the background of a developer and project, consult experienced homeowners regarding the good and bad of a project before committing.
I have seen many people buy a house merely based on price consideration.
In fact, there are more to be deliberated when we commit for a roof over our heads. The location, project type, reputation of a developer, the workmanship, the future maintenance of the property etc, are all important factors for a good decision as they would affect the future value of a project.
Beware when a discount or a rebate sounds too good to be true, it may be just too good to be true and never materialised. If the collection or revenue of a housing project is not sufficient to fund the building cost, the developer may not be able to complete the project or deliver the house as per promised terms. At the end of the day, the “price” paid by homeowners would be far more expensive.
In general, the same principle applies elsewhere. It is a known fact that when we pay a premium for a quality product from a reliable producer, we have a peace of mind that the product could last longer and end up saving us money. Some lucky ones will end up gaining much more.
For instance, when we purchase a car, we should consider its resale value as some cars hold up well, while others collapse after a short period. Other determining factors include the specifications of the car, the after sales service, and the availability of spare parts.
Quality products always come with a higher price tag due to the research, effort, materials and services involved.
In addition to buying a house or big ticket items, other incidents that can tantamount to losing huge sums are like money games, get-rich-quick scheme, or the purchase of stolen cars or houses with caveats.
When an offer or a rebate sounds dodgy, the “good deal” can be a scam.
Years of experience tells me that when what is too good to be true, we should think twice. I always remind myself with a quote from John Ruskin (1819-1900) who was an art critic, an artist, an architect and a philosopher. “It’s unwise to pay too much, but it’s worse to pay too little. When you pay too much, you lose a little money – that’s all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do.
“The common law of business balance prohibits paying a little and getting a lot – it can’t be done. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that you will have enough to pay for something better.”
Food for thought by Alan Tong
Datuk Alan Tong has over 50 years of experience in property development. He was the world president of FIABCI International for 2005/2006 and awarded the Property Man of the Year 2010 at FIABCI Malaysia Property Award. He is also the group chairman of Bukit Kiara Properties. For feedback, please email feedback@fiabci-asiapacific.com.
Angry investors who lodged a police report at the Pekan Kinrara station. Waiting for answers:
His first investment scheme failed with losses estimated at between RM400mil and RM1.7bil but JJPTR founder Johnson Lee has brazenly come up with a new one offering even higher returns of 35% a month and with a car, motorcycles and smartphones thrown in as lucky draw prizes. Many of his investors still have faith in him but those in another scheme, Change Your Life, are in a quandary. They now have to choose between getting lower returns or changing to ‘life points’ – and waiting.
Show me the money: Investors making enquiries at Icon City in Bukit Tengah, Bukit Mertajam. The money scam issue has got many who have parted with their savings feeling anxious
After the spectacular collapse of his previous financial scheme, purportedly because of a hacked account, controversial scheme operator Johnson Lee has rolled out a new plan, claiming to offer even better returns.
While JJPTR’s earlier scheme – which ended with RM500mil missing from the company’s account – offered returns of 20% a month, this new one offers 35%.
On top of that, it offers special lucky draws with a new car, motorcycles and smartphones as prizes.
What the company did not say in the shining glossary of the new plan is how Lee plans to address the US$400mil (RM1.73bil) losses he claims the company has incurred.
The new scheme also does not explain how he plans to repay those who lost their money to the earlier scheme.
The one-and-a-half minute video Lee uploaded shows that the new plan is based on a “split mechanism” and has three rounds.
The initial investment in US dollars is “split” or doubled in each round. Half of it is re-invested in the scheme and rolls over to the next round.
Each round lasts 10 days and investors are allowed to convert their earnings back to ringgit after three rounds.
Anyone who invests US$1,000 (RM4,331) is expected to receive US$450 (RM1,949) in each round, making it a return of US$1,350 (RM5,847) by the end of round three.
Under the proposed new scheme, investors will also be rewarded with JJ Points, which can be used in exchange for goods via its shopping platform JJ Mart.
The new scheme was announced by the 28-year-old Lee last Tuesday after news broke that his company had gone bust.
The company did not say when the new plan would start.
Attempts to contact Lee were futile and the number listed on the JJPTR Facebook page is already out of service.
A visit to the company’s offices in Penang showed that investors were no longer lining up for answers.
Instead, the staff, who preferred not to be photographed, were seen sitting at empty counters.
Penang-based JJPTR, or Jie Jiu Pu Tong Ren in Mandarin (salvation for the common people), came under the spotlight when investors complained that they did not get their scheduled payment last month.
JJPTR, JJ Poor to Rich and JJ Global Network are among the entities listed as unauthorised companies under Bank Negara Malaysia’s Financial Consumer Alert.
Records from the Companies Commission of Malaysia showed that JJ Global Network was a “RM2 company” owned by Lee and his former girlfriend Tan Kai Lee, 24. Each hold a single share.
Lee’s father Thean Chye, 58, and Tan are also directors of another company called JJ Global Network Holdings Bhd.
Thean Chye, who was an assistant professor at Southern University College in Johor, resigned on Wednesday after the JJPTR losses came to light.
Source: The Star/ANN
Investor tells off staff after failing to get refund
Business as usual: Employees explaining the refund process and new scheme to investors at the JJPTR main office in Perak Road, Penang.
GEORGE TOWN: An investor, frustrated over not getting a promised refund on his stake, told off several female employees at the main JJPTR office in Perak Road.
The man, in his 40s, was heard having an exchange of words with the staff after being told that it may take “a few more days” before he could get his money.
He told them Johnson Lee, the founder of JJPTR, had said that the money was refunded to JJ2 scheme investors some days ago.
“But until today, I haven’t got my money back.
“I just want to know if the refund has been made or are you in the midst of processing the refund?
“If he has not started the refund, just be honest with the investors.”
He insisted on getting a firm date on when he would get back his money but the employees replied that they would need at least five working days.
He then demanded their names but they refused him.
“You don’t even dare give me your names. If I want to lodge a report, I won’t be able to provide the police with details.
“And don’t tell me you need days for a bank transfer. It only takes hours,” he said.
As he left the office, several journalists approached him for comment but were turned down.
“I don’t want to talk to reporters. You are all just causing trouble for us. I can get things done on my own,” he said. JJPTR, or Jie Jiu Pu Tong Ren (“salvation for the common people” in Mandarin), is a Penang-based company that came under the spotlight when its investors complained that they did not get their scheduled profits last month.
According to online and media reports, the investors stand to lose RM500mil. They reportedly number in the tens of thousands, comprising Malaysians and foreigners from Canada, the United States and China.
Lee, who has blamed the loss on hackers, put the figure at US$400mil (RM1.75bil) in a widely-circulated video clip.
JJPTR, JJ Poor to Rich and JJ Global Network are listed as unauthorised companies by Bank Negara Malaysia.
Source: The Star/ANN
JJPTR just trying to buy time, says ‘scam buster’
“Scam buster” Afyan Mat Rawi has ridiculed JJPTR’s new plan, calling it “unsustainable” and nothing but a forex scheme to placate angry investors.
Once a victim of an investment scam himself, the 37-year-old financial adviser said investors should stay away from the scheme, which he described as “illogical”.
“The investors are angry right now, and JJPTR is trying to pacify them by introducing this new plan.
“A 35% return at the end of the three rounds (one month) is illogical. Where would the company find all the money to reinvest?
“The new plan is just a way for them to buy time,” Afyan said.
He said any investment scheme promising returns of more than 15% in a year will ultimately collapse.
“No legitimate scheme will guarantee an annual return of more than 15%. Any scheme claiming to do otherwise has to be a scam.
“Like most other pyramid schemes, the (JJPTR) forex scheme will collapse when there is no entry of new investors.”
Afyan said that despite getting flak from investors after allegedly losing RM500mil due to its accounts being hacked, it was still “possible” for JJPTR to entice old and new investors to subscribe to the new plan, which promises higher returns and special lucky draws.
“Some investors may leave, because they no longer see hope but those in the “top tier” will continue finding new victims as they’ve already invested so much.
“Unfortunately, there will still be people who believe in them,” he related.
Commenting on a video of founder Johnson Lee announcing the new plan via JJPTR Malaysia’s Facebook page, Afyan said the laws in Malaysia were not harsh enough to serve as deterrent for so-called “scammers”.
He claimed that the only person to have been severely punished for operating an illegal investment scheme was Pak Man Telo, or Othman Hamzah, who was jailed and banished to Terengganu from Perak in the early 1990s.
Othman reportedly enticed 50,000 people to invest in his getrich-quick scheme, commonly known as the Pak Man Telo scheme, and managed to rake in RM90mil before being arrested, tried and sent to prison for two years. He died in Terengganu a few years later.
Ever since then, Afyan claimed, convicted scammers have been getting away easy.
“At most, scammers will be arrested and remanded. But you don’t hear about them serving time in prison. They’ve already made millions, billions, in profits.
“A penalty of a few thousand ringgit is nothing to them,” he said.
Afyan, who lost RM300 to a getrich-quick scheme while he was a university student in 2003, worked in Islamic insurance and financial planning after graduating.
He created a Facebook page in 2008 to share information on questionable investment opportunities, earning him the nickname “scam buster”.
He claims to have uncovered about 50 dubious companies so far.
Angry investors who lodged a police report at the Pekan Kinrara station. Waiting for answers:
His first investment scheme failed with losses estimated at between RM400mil and RM1.7bil but JJPTR founder Johnson Lee has brazenly come up with a new one offering even higher returns of 35% a month and with a car, motorcycles and smartphones thrown in as lucky draw prizes. Many of his investors still have faith in him but those in another scheme, Change Your Life, are in a quandary. They now have to choose between getting lower returns or changing to ‘life points’ – and waiting.
Show me the money: Investors making enquiries at Icon City in Bukit Tengah, Bukit Mertajam. The money scam issue has got many who have parted with their savings feeling anxious
After the spectacular collapse of his previous financial scheme, purportedly because of a hacked account, controversial scheme operator Johnson Lee has rolled out a new plan, claiming to offer even better returns.
While JJPTR’s earlier scheme – which ended with RM500mil missing from the company’s account – offered returns of 20% a month, this new one offers 35%.
On top of that, it offers special lucky draws with a new car, motorcycles and smartphones as prizes.
What the company did not say in the shining glossary of the new plan is how Lee plans to address the US$400mil (RM1.73bil) losses he claims the company has incurred.
The new scheme also does not explain how he plans to repay those who lost their money to the earlier scheme.
The one-and-a-half minute video Lee uploaded shows that the new plan is based on a “split mechanism” and has three rounds.
The initial investment in US dollars is “split” or doubled in each round. Half of it is re-invested in the scheme and rolls over to the next round.
Each round lasts 10 days and investors are allowed to convert their earnings back to ringgit after three rounds.
Anyone who invests US$1,000 (RM4,331) is expected to receive US$450 (RM1,949) in each round, making it a return of US$1,350 (RM5,847) by the end of round three.
Under the proposed new scheme, investors will also be rewarded with JJ Points, which can be used in exchange for goods via its shopping platform JJ Mart.
The new scheme was announced by the 28-year-old Lee last Tuesday after news broke that his company had gone bust.
The company did not say when the new plan would start.
Attempts to contact Lee were futile and the number listed on the JJPTR Facebook page is already out of service.
A visit to the company’s offices in Penang showed that investors were no longer lining up for answers.
Instead, the staff, who preferred not to be photographed, were seen sitting at empty counters.
Penang-based JJPTR, or Jie Jiu Pu Tong Ren in Mandarin (salvation for the common people), came under the spotlight when investors complained that they did not get their scheduled payment last month.
JJPTR, JJ Poor to Rich and JJ Global Network are among the entities listed as unauthorised companies under Bank Negara Malaysia’s Financial Consumer Alert.
Records from the Companies Commission of Malaysia showed that JJ Global Network was a “RM2 company” owned by Lee and his former girlfriend Tan Kai Lee, 24. Each hold a single share.
Lee’s father Thean Chye, 58, and Tan are also directors of another company called JJ Global Network Holdings Bhd.
Thean Chye, who was an assistant professor at Southern University College in Johor, resigned on Wednesday after the JJPTR losses came to light.
Source: The Star/ANN
Investor tells off staff after failing to get refund
Business as usual: Employees explaining the refund process and new scheme to investors at the JJPTR main office in Perak Road, Penang.
GEORGE TOWN: An investor, frustrated over not getting a promised refund on his stake, told off several female employees at the main JJPTR office in Perak Road.
The man, in his 40s, was heard having an exchange of words with the staff after being told that it may take “a few more days” before he could get his money.
He told them Johnson Lee, the founder of JJPTR, had said that the money was refunded to JJ2 scheme investors some days ago.
“But until today, I haven’t got my money back.
“I just want to know if the refund has been made or are you in the midst of processing the refund?
“If he has not started the refund, just be honest with the investors.”
He insisted on getting a firm date on when he would get back his money but the employees replied that they would need at least five working days.
He then demanded their names but they refused him.
“You don’t even dare give me your names. If I want to lodge a report, I won’t be able to provide the police with details.
“And don’t tell me you need days for a bank transfer. It only takes hours,” he said.
As he left the office, several journalists approached him for comment but were turned down.
“I don’t want to talk to reporters. You are all just causing trouble for us. I can get things done on my own,” he said.
JJPTR, or Jie Jiu Pu Tong Ren (“salvation for the common people” in Mandarin), is a Penang-based company that came under the spotlight when its investors complained that they did not get their scheduled profits last month.
According to online and media reports, the investors stand to lose RM500mil. They reportedly number in the tens of thousands, comprising Malaysians and foreigners from Canada, the United States and China.
Lee, who has blamed the loss on hackers, put the figure at US$400mil (RM1.75bil) in a widely-circulated video clip.
JJPTR, JJ Poor to Rich and JJ Global Network are listed as unauthorised companies by Bank Negara Malaysia.
Source: The Star/ANN
JJPTR just trying to buy time, says ‘scam buster’
“Scam buster” Afyan Mat Rawi has ridiculed JJPTR’s new plan, calling it “unsustainable” and nothing but a forex scheme to placate angry investors.
Once a victim of an investment scam himself, the 37-year-old financial adviser said investors should stay away from the scheme, which he described as “illogical”.
“The investors are angry right now, and JJPTR is trying to pacify them by introducing this new plan.
“A 35% return at the end of the three rounds (one month) is illogical. Where would the company find all the money to reinvest?
“The new plan is just a way for them to buy time,” Afyan said.
He said any investment scheme promising returns of more than 15% in a year will ultimately collapse.
“No legitimate scheme will guarantee an annual return of more than 15%. Any scheme claiming to do otherwise has to be a scam.
“Like most other pyramid schemes, the (JJPTR) forex scheme will collapse when there is no entry of new investors.”
Afyan said that despite getting flak from investors after allegedly losing RM500mil due to its accounts being hacked, it was still “possible” for JJPTR to entice old and new investors to subscribe to the new plan, which promises higher returns and special lucky draws.
“Some investors may leave, because they no longer see hope but those in the “top tier” will continue finding new victims as they’ve already invested so much.
“Unfortunately, there will still be people who believe in them,” he related.
Commenting on a video of founder Johnson Lee announcing the new plan via JJPTR Malaysia’s Facebook page, Afyan said the laws in Malaysia were not harsh enough to serve as deterrent for so-called “scammers”.
He claimed that the only person to have been severely punished for operating an illegal investment scheme was Pak Man Telo, or Othman Hamzah, who was jailed and banished to Terengganu from Perak in the early 1990s.
Othman reportedly enticed 50,000 people to invest in his getrich-quick scheme, commonly known as the Pak Man Telo scheme, and managed to rake in RM90mil before being arrested, tried and sent to prison for two years. He died in Terengganu a few years later.
Ever since then, Afyan claimed, convicted scammers have been getting away easy.
“At most, scammers will be arrested and remanded. But you don’t hear about them serving time in prison. They’ve already made millions, billions, in profits.
“A penalty of a few thousand ringgit is nothing to them,” he said.
Afyan, who lost RM300 to a getrich-quick scheme while he was a university student in 2003, worked in Islamic insurance and financial planning after graduating.
He created a Facebook page in 2008 to share information on questionable investment opportunities, earning him the nickname “scam buster”.
He claims to have uncovered about 50 dubious companies so far.
Let your children decide on their employment choice
Most parents in their fifties are looking at retirement options when their children starts looking for employment after their studies. There is this transition moment in our family circle of life where the baton of employment, career or business is being passed to the next generation.
The older generation after 30 years of slogging, looks forward to easier passing of days without the responsibilities and worries whilst the younger generation looks forward with optimism and high hopes of securing a good career ahead.
As an entrepreneur with businesses and investments, my natural instinct is to rope them into the family business, if any, as any typical old generation Chinese businessman will do. But I made up my mind some 7 years ago when my first born started his A Level, that my children will make their own choice whether they will prefer to seek employment elsewhere or participate in the family business. It will be their choice and decision and I will support whole heartedly whatever decisions they will make. 7 years later, I still have the same conviction.
I had this feeling that the business world and environment will be much different with all these globalization and technological advancement and the businesses that I was in will be operating in a much more competitive and disruptive world order. This has proven to be true.
The traditional brick and mortar businesses are under tremendous stress to keep up with new disruptive technologies and new business ideas.
My children will have to learn new skills and insights and they definitely will not be able to learn from my traditional family business unless I had instituted changes to my existing business to join the new business order. But I did not know how.
So it is better that they decide on their choice of employment in whatever industries they choose as long as they are working for a forward looking company who is able to embrace the new technological changes that is changing the business order across the global markets. And if they do decide later after some years of working experience to venture out as an entrepreneur, I will also support them wholeheartedly.
Assuming they are up to it, with the right attitude and skill sets.
Not everyone is capable of being a ‘successful’ entrepreneur. It is easy to start a business, call yourself a founder and entrepreneur but chances of being successful is limited to the capable few. For most cases, you are better off building a good career in a good organization rather than struggling in a small scale business for the rest of your life.
If you planned to be an entrepreneur, just make sure your business potential is scalable to a size that will earned you nett, double what you would be earning in a good job. Or else it will be a waste of time. The thrill of being your own boss wears thin over time when you are not doing well financially.
I have many friends who have done very well in their corporate careers and they seem very happy when we do meet up. They definitely look younger than me, with less stressful lines, a radiant and happy face. Compared to my aged face filled with worried lines and scars of agony suffered through the years. Was it worth it?
With the wisdom of hindsight, I am now able to advise my children on their decision making process on whether they should be a corporate suit or to go on their own. My only guidance to them is whatever choice they make, just ensure their actions are productive and contribute towards the well being of the economy. Don’t be lazy, do good where you can and be as good as you can be. Then start a family. Circle of life starts again.
The only career that I totally discouraged my children from is the job of a politician. Good politicians are hard to find nowadays. Since integrity left the politicians, good virtues and honesty followed. What is left is a shell of a conniving and corrupted politician using whatever means they can to stay in power supposedly representing the people’s interest.
All over the world, the politicians together with religious and racist bigots have caused total mayhem to our daily lives. People are divided by race, religion and skin colour. Nothing makes sense anymore. Throw in lots of money into a politician’s hands and we have absolute corruption across the ranks. Cash is king. Everybody can be bought. And I mean everybody.
What is really sad is the complete breakdown of morality and integrity of the human politician. Where he suffers no shame when he is openly corrupted. When he can sleep well even though he has done many evil things destroying the moral fabric of the society which he swore to protect. I have nothing but despise for these toxic politicians.
The few genuine politicians who stand up their grounds to all are few and far between. Eventually, they too will engulfed by the all pervasive influence of corruption.
To the younger generation joining the working community, my only advice is to pick a job that fits your personality and your skill sets. Make sure you enjoy the job. Get some proper working experience under your belt and you can evaluate your options in a more leisurely way.
You will know when there is a calling for you to become an entrepreneur. You will be unhappy with your job, your bosses irritates you, there is a burning desire that has just lighted up in your belly, a brilliant idea suddenly appeared and you feel that you are now ready to be an entrepreneur. Are you?
From experience, it takes a long time for an entrepreneur to make big fortune. If you do not have the patience, I recommend you a job that makes money faster than an entrepreneur.
Be a politician.
Source: Tan Thiam Hock, On Your Own/Starbizweek
The writer is an entrepreneur who hopes to share his experience and insights with readers who want to take that giant leap into business but are not sure if they should.
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Rio 2016 Olympic Games badminton mixed doubles winners - (from left) silver medallists Chan Peng Soon and Goh Liu Ying of Malaysia; gold medallists Tontowi Ahmad and Liliyana Natsir of Indonesia; and bronze medallists Zhang Nan and Zhao Yunlei of China. PHOTO: REUTERS
Although some countries offer financial incentives to its athletes, a genuine sporting culture may be the best guarantee of success at the Games.
SHOCK and awe just about sums up the stunning achievement of young Singaporean swimmer Joseph Schooling at the Rio Olympics.
His victory is classic David beating Goliath; he was the underdog from a tiny country that had never won an Olympic gold.
What made it all the sweeter and remarkable is that Schooling beat the mightiest, most decorated Olympian in history – American Michael Phelps who has won 23 gold medals – and set an impressive new record of 50.39 secs for the 100m butterfly event.
When news of Singapore’s first gold medal broke, it quickly overtook other stories emanating from Rio and became the talk of the world.
It eclipsed its Asean neighbours’ own Olympic gold successes: Vietnam’s shooter Hoang Xuan Vinh in the 10m air pistol competition and Thailand’s weightlifters Sopita Tanasan and Sukanya Srisurat in their individual weight classes and certainly overshadowed Malaysian diving duo Pandelela Rinong and Cheong Jun Hoong’s silver in the women’s synchronised 10m platform diving.
All are no small feats but there is a total of 28 sports in the Games, not counting those with multiple disciplines, and the most popular ones for a global audience are gymnastics, track and field and swimming, according to topendsports.com.
Among Asian nations competing in the Games, China and Japan are traditionally strong contenders in gymnastics and swimming although the Chinese gymnasts seem to be doing poorly this time around.
For most other Asian competitors, the sports they excel in tend to be the ones with less mass appeal like archery, shooting, judo, badminton and for some strange reason, women’s weightlifting.
Apart from the Thais, Taiwanese, Filipina and Indonesian female weightlifters have also won medals for their countries.
China remains the sporting powerhouse of Asia, sending its largest delegation of 416 athletes to Rio this year, but they have failed to defend their gold medals in sports they used to dominate like badminton and diving.
As for the glamorous track and field events, there doesn’t seem to be any Asian athlete who can challenge the likes of Usain Bolt.
Meanwhile, the other Asian powerhouse, India, with the second largest population in the world, has never done well at the Olympics, which has been the subject of intense debate among Indian and foreign sports pundits.
India also sent its biggest ever contingent of 118 sportsmen and women, and has so far won only a bronze medal in wrestling. Winning an Olympic gold medal is the Holy Grail of sports.
The pomp that surrounds the Games gives the gold medallists unparalleled honour and prestige. And the nations they represent go into collective convulsions of ecstasy and nationalistic joy, which make their governments equally happy.
That’s why many nations pour millions into sports programmes to nurture and train promising talents and offer great financial rewards to successful Olympians.
Schooling will get S$1mil (RM3mil) from the Singapore government for his gold medal. Vietnam’s Hoang reportedly will receive US$100,000 (RM400,000), a figure, according to AFP, that is nearly 50 times greater than the country’s average national income, of around US$2,100 (RM8,400).
Malaysia, which is seeing its best ever performance in Rio, thanks to its badminton players and divers, rewards its successful athletes handsomely under its National Sports Council incentive scheme.
An Olympic gold medal winner will receive RM1mil and a monthly pension of RM5,000; a silver medallist, RM600,000 and a RM3,000 pension while a bronze winner gets RM100,000 and a RM2,000 pension.
Taiwan, India, Indonesia, the Philippines, South Korea and Thailand have similar monetary reward schemes. North Korea uses a carrot and stick scheme: huge rewards for medal winners and hard labour for the failed ones.
Several western countries have the same financial bait, including the United States, France, Russia and Germany, but at a lower rate.
Does it work?
The Technology Policy Institute looked for a correlation and was mindful of variables like country size and income, “since those are surely the biggest predictor of how many medals a country will win: more populous countries are more likely to have that rare human who is physically built and mentally able to become an Olympic athlete, while richer countries are more likely to be able to invest in training those people.”
The researchers found no correlation between monetary payments and medals and said it was not surprising in some countries. In the United States, for example, a US$25,000 (RM100,000) cash award would be dwarfed by million-dollar endorsements the athlete could get.
The researchers also set out to see if the results were different for countries with lower opportunities for endorsements. Their conclusion: “overall the evidence suggests that these payments don’t increase the medal count” either.
Rather, countries that do well are those with a longstanding sporting culture that values and nurtures their athletes long before they qualify for the Olympics.
That is evident in Western societies where sportsmen, even at the college level, are feted and idolised. In Asia, however, the emphasis is more on book-learning and earning prestigious degrees.
The BBC quotes Indian Olympic Association head Narayana Ramachandran as saying India’s sorry performance is more than just a shortage of cash or organisation.
“Sport has always taken a back seat vis-á-vis education. Most Indian families would prefer their children became dentists or accountants than Olympians,” he says.
But that attitude is surely changing as more Asian sportsmen and women go professional and are able to make a good living.
In Malaysia, its most popular sportsman, badminton star Datuk Lee Chong Wei, is highly successful with a number of endorsements under his belt.
For now, it is still the Western countries that dominate the Olympic medal tally table. But it’s only a matter of time before more Asian nations, once no-hopers at the Games, rise up the charts.
It’s already started. The Rio Games will go down in history as a watershed for Asean, with two member states – Singapore and Vietnam – winning their first gold medals. May it be so for Malaysia, too. By June H.L Wong Chief Operating Officer (Content Development) The Star, Malaysia. The writer was the former group chief editor of The Star Media Group Malaysia. This is the eighth article in a series of columns on global affairs written by top editors from members of the Asia News Network and published in newspapers across the region.
Heartbreak again for Chong Wei, Chen Long takes gold
The medallists (from left): Silver medallist Chong Wei, gold medallist Chen Long and bronze medallist Viktor Axelsen on the podium at Riocentro Pavilion 4. - AZHAR MAHFOF / The Star
https://youtu.be/63BmkZeq2mo
RIO DE JANEIRO: Lee Chong Wei, the king of Malaysian badminton, will leave the Rio de Janeiro Olympics without the crown – and so will Malaysia without the coveted gold.
The 33-year-old lost his third Olympic final after going down 18-21, 18-21 to Chen Long at the Riocentro Pavilion 4 on Saturday.
It was indeed a painful end for Malaysia as it was the third false dawn. Earlier, Malaysia had also lost in the men’s doubles and mixed doubles finals.
Malaysia thus will return home with a total of four silvers and one bronze.
The other three silvers came from Chan Peng Soon-Goh Liu Ying (mixed doubles), Goh V Shem-Tan Wee Kiong (men’s doubles) and divers Pandelela Rinong-Cheong Jun Hoong (women’s 10m platform synchro). Cyclist Azizulhasni Awang contributed the sole bronze through the men’s keirin.
Both Chong Wei, playing in probably his last Olympics, and Chen Long went onto the court to loud cheers from their countries’ supporters.
Chong Wei, who lost to Lin Dan at the 2008 Beijing and 2012 London finals, looked tentative in the beginning to allow Chen Long to open up a 4-0 lead. But he recovered his composure to lead 5-4.
After that, they traded point until it was 7-7 before Chong Wei pulled away for an 11-7 and then 14-10 lead.
But Chen Long refused to go away and managed to level at 14-14.
Twice Chong Wei surged in front but Chen Long capitalised on the Malaysian’s mistakes at the net to lead 20-17. Although world No. 1 Chong Wei managed to save one match point, his failure to return a smash gave Chen Long a 21-18 win in 35 minutes.
Oozing confidence, Chen Long was always in front in the second game – leading 4-1 and 5-2.
But Chong Wei fought back to go 8-5 up. Chen Long then went on a smashing spree, winning six points for an 11-8 advantage.
The 27-year-old world No. 2 never looked back after that as he always had at least a three-point lead.
Everything looked lost for Chong Wei as Chen Long reached 20-16. The Malaysian saved two match points but then sent the shuttle out to lose 18-21 in 38 minutes.
For Chen Long, it was his first Olympic gold to add to his two All-England and World Championships crowns.
Chong Wei can only look in envy as he’s still without a world or Olympic crown. He also lost in three World Championships finals.
Chen Long’s gold was only China’s second at these Games after Fu Haifeng-Zhang Nan triumphed in the men’s doubles.
Earlier, two-time Olympic champion Lin Dan fell from grace in probably his last Olympic outing after losing 21-15, 10-21, 17-21 to Dane Viktor Axelson in the 70-minute bronze medal playoff.
Aug 7, 2012 ...Malaysia's Datuk Lee Chong Wei vs China's Lin Dan; what difference for winner/loser? DAP's Manoharan under fire over disparaging tweets ...
Like mahjong: The current world situation is like the Chinese game of mahjong which has four players with a limited number of chips. If one player is the persistent winner, he or she ends up with all the chips and the game ends.
There is grave concern that the world economy is slipping into what Harvard professor and former US Treasury Secretary Larry Summers calls the global secular deflation. In simple terms, growth has slowed without inflation, despite exceptionally stimulative monetary policy. Larry’s view is that the advanced countries can use fiscal policy to stimulate growth, using massive investments in infrastructure. If needs be, this can be financed by central banks.
Central bank financing fiscal deficits is technically called “helicopter money”, named by the late monetarist economist Milton Friedman as the central bank pushing money out of the helicopter. Strict monetarism thinks that this would cause inflation.
The simple reason why the world is moving into secular deflation is that the largest economies are all slowing for a variety of reasons. Unconventional monetary policy applied since the 2007 crisis has brought central bank interest rates to zero or negative terms in economies accounting for 60% of world GDP.
Most economists blame current slow growth to “lack of aggregate demand” or “excess of aggregate production”. The rich countries are mostly aging and already heavily burdened with debt, so they cannot consume more. After the 2007 global financial crisis, the emerging market economies have slowed down, as demand for their exports have slowed. We are in a vicious circle where global trade growth is now slower than GDP growth, because the US economy is no longer the consumption engine of last resort. China, which has been a huge consumer of commodities, has slowed. Japanese growth has been flat due to an aging population. European growth has not recovered, partly because the leading economy, Germany, calls for austerity by its southern partners.
The Brexit shock threatens to weaken global confidence and send growth down another notch.
Former Bank of England Governor Lord Mervyn King famously called the global monetary order a game of sodoku, in which national current accounts in the balance of payments add up to a zero sum game. This is because in the global trade game, one country’s current account deficit is another country’s surplus. In the past, if the US runs larger and larger current account deficits, world growth is stimulated because everyone wants to hold dollars and has been willing to supply the US with all manners of consumer goods. This has been called an “exorbitant privilege” for the dollar.
The present global monetary order or non-order is a result of the 1971 US dollar de-link from gold, which gave rise to a phase of floating exchange rates and rising capital flows, which some people call Bretton Woods II. The old order, set at the Bretton Wood Conference of 1944, centered around a system of global fixed exchange rates, based on the US dollar link with gold price at US$35 to one ounce of gold.
But flexible exchange rates has resulted in a system where everyone seems to be devaluing their way out of trouble. Has the global secular deflation something to do with Bretton Woods II?
My answer must be yes. The reason lies in what I call, instead of sodoku, the mahjong winner’s curse. The Chinese game of mahjong has four players with a limited number of chips. If one player is the persistent winner, he or she ends up with all the chips and the game stops. Since the global game of trade cannot stop, the winner has both an exorbitant privilege (of being funded by the others) and an exorbitant curse (of bearing the loss if the others won’t or refuse to pay). To keep the game going, the winner has to give or lend the chips back to the other players, who play with the hope of winning the next round.
Indeed, if the winner is generous, the game can be made bigger, because the winner can issue more chips (defined as a reserve currency), which the others are more than willing to borrow and play.
The current world situation is that the Winners are the four reserve currency countries, the dollar, euro, yen and sterling, all of which have interest rates near zero or even negative. Until recently, the Winners blame China and the oil producing countries as having too high current account surpluses. But recently, after the huge European cutback in expenditure, Europe as a whole is the world’s largest current account surplus group of nearly 5% of GDP.
Herein lies the winner’s curse. The emerging markets should be able to stimulate global growth, but are unwilling to run larger current account deficits because they cannot get financing. The richer economies can stimulate global growth, but they are unwilling to do so, because they either feel that they already have too much debt or because they worry that stimulus would lead to inflation.
However, reserve currency countries have an advantage. As long as they are willing to run current account deficits, there will be little inflation because the world economy has huge excess capacity and surplus savings. If emerging markets run higher current account deficits, they will have to depreciate, which is exactly what Brazil, South Africa and others have done.
The winner’s curse is that if Europe is now unwilling to reflate and spend, the world will continue to slow. Indeed, in a world of greater geo-political risks, money is fleeing to the US dollar and the yen, causing both to appreciate.
What these capital flows into the reserve currencies when their interest rate is zero and they are unable to reflate imply is that the dollar and yen play the deflationary role of gold in the 1930s. As more and more mahjong players hold gold and don’t spend, the world global trade and growth game slows further. The mahjong winner’s curse requires the winners to stimulate and spend, bearing higher credit risks. That’s the privilege and responsibility of winners in the global game. If not, look out for more global secular deflation.
By Tan Sri Andrew Sheng who writes on global issues from an Asian perspective.
Mar 19, 2016 ... In other words, growth accelerates exponentially until the economy reaches maturity and slows down, and if there is no longer ... Modern finance and moneybeing managed like a Ponzi scheme! Economic Collapse soon?
May 14, 2016 ... Finance is a derivative of the real economy, which can be leveraged or multiplied as ... value of the underlying asset – which were triggers of the global crash of 2007, ... all lending) can only be implemented after the next and coming crisis. ... Modern finance and money being managed like a Ponzi scheme !
Food for thought by Alan Tong
