WHO Coronavirus disease (COVID-19) -Get the latest information from the World Health Organization about coronavirus.
Donald Trump again struggled to reassure a fearful nation on Thursday as it emerged the US now has the highest number of confirmed coronavirus cases in the world.
News that America had surpassed virus hotspots China and Italy with 82,404 cases of infection, according to a tracker run by Johns Hopkins University, broke as the president was holding a press conference at the White House.
His instinctive response was to question other countries’ statistics. “It’s a tribute to the amount of testing that we’re doing,” Trump told reporters. “We’re doing tremendous testing, and I’m sure you’re not able to tell what China is testing or not testing. I think that’s a little hard.”
Trump later spoke to the Chinese president, Xi Jinping, by telephone and had what he described on Twitter as a “very good conversation”. The two leaders discussed the coronavirus in “great detail”, adding that: “China has been through much & has developed a strong understanding of the Virus. We are working closely together. Much respect.
So many people can't die in vain, so many companies can't go bankrupt for nothing. The world needs to learn from each failure. Mankind needs to see where we stand, what the risks are, and we must act.
Pompeo and other US elites must be responsible for damaging superpower cooperation if the pandemic worsens, while China cannot join hands with the US due to the war of words. Politicians like Pompeo focus too much on their personal political interests. They will eventually be remembered as negative role models in the history of mankind's battle against COVID-19.
On March 16, the novel coronavirus vaccine developed by Chen and her team entered clinical trials. On March 20, 108 volunteers were injected with the COVID-19 vaccine developed by China.
Defeating the coronavirus is the common expectation of all mankind. All countries are called on to join hands in the fight. It's hoped the US government could follow the trend when formulating its policies.
There is no substitute for concerted multilateral action. For this, we happen to have an instrument that seems made-to-order for this extreme emergency. The G20 should once again come to the fore and do the needful.
The first clinical trial of the novel coronavirus vaccine in China has kicked off as volunteers taking part in the project started to share
their experience on social media, a Chinese newspaper reported on Saturday. China Daily/ANN
The first clinical trial of the novel coronavirus vaccine in China has kicked off as volunteers taking part in the project started to share their experience on social media, a Chinese newspaper reported on Saturday.
On Thursday, a female volunteer posted two pictures of her taking the vaccine shot as a part of the phase 1 clinical trial for recombinant novel coronavirus vaccine on China’s Twitter-like social media platform Sina Weibo, according to the Science and Technology Daily.
The clinical trial was filed in the Chinese Clinical Trial Registry on March 17.
According to its registration information, the trial is jointly sponsored by the Institute of Biotechnology, Academy of Military Medical Sciences, People’s Liberation Army and CanSino Biologics Inc based in Tianjin.
The trial is being carried out on healthy adults between the ages of 18 and 60 in two medical facilities in Wuhan, Hubei province. The study is set to be completed by Dec 31, according to the registry.
All 108 volunteers are from Wuhan that was hit hard by the outbreak. They will receive a series of follow-up examinations within six months after injection to see if their bodies have generated antibodies to the virus, the registry said,
Wang Junzhi, a senior expert on drug and vaccine development, said earlier this month that China is simultaneously conducting nine vaccine development projects, and most of them are expected to complete preclinical trials and begin human tests in April.
In general, China’s vaccine development against Covid-19 is among the world’s front-runners, he added.
The COVID-19 epidemic in the US is worsening sharply as the
federal government approved major disaster declarations for New York,
California and Washington states, and the situation in Washington DC
worsened, with local police shutting down streets to stop mass
gatherings .
China's image will not be dented by lies which will however
ultimately hurt Americans. There are three main “China lies” promoted
by the Trump administration.
This is a war, and a new battle line has been drawn.
Prevention of imported cases and resumption of production are two new
fronts we must not lose. The future is still complicated and we will
continue to face severe tests.
But no matter how the Trump administration tries to
deceive people, their serious dereliction of duty and the consequences
are clear and cannot be veneered.
There is plenty of evidence showing the US federal government's slowness
in dealing with the virus and Trump's downplaying of the epidemic.
The first clinical trial of the novel coronavirus vaccine in China has kicked off as volunteers taking part in the project started to share their experience on social media, a Chinese newspaper reported on Saturday. China Daily/ANN
The first clinical trial of the novel coronavirus vaccine in China has kicked off as volunteers taking part in the project started to share their experience on social media, a Chinese newspaper reported on Saturday.
On Thursday, a female volunteer posted two pictures of her taking the vaccine shot as a part of the phase 1 clinical trial for recombinant novel coronavirus vaccine on China’s Twitter-like social media platform Sina Weibo, according to the Science and Technology Daily.
The clinical trial was filed in the Chinese Clinical Trial Registry on March 17.
According to its registration information, the trial is jointly sponsored by the Institute of Biotechnology, Academy of Military Medical Sciences, People’s Liberation Army and CanSino Biologics Inc based in Tianjin.
The trial is being carried out on healthy adults between the ages of 18 and 60 in two medical facilities in Wuhan, Hubei province. The study is set to be completed by Dec 31, according to the registry.
All 108 volunteers are from Wuhan that was hit hard by the outbreak. They will receive a series of follow-up examinations within six months after injection to see if their bodies have generated antibodies to the virus, the registry said,
Wang Junzhi, a senior expert on drug and vaccine development, said earlier this month that China is simultaneously conducting nine vaccine development projects, and most of them are expected to complete preclinical trials and begin human tests in April.
In general, China’s vaccine development against Covid-19 is among the world’s front-runners, he added.
On March 16, the novel coronavirus vaccine developed by Chen and her team entered clinical trials. On March 20, 108 volunteers were injected with the COVID-19 vaccine developed by China.
The COVID-19 epidemic in the US is worsening sharply as the federal government approved major disaster declarations for New York, California and Washington states, and the situation in Washington DC worsened, with local police shutting down streets to stop mass gatherings .
China's image will not be dented by lies which will however ultimately hurt Americans. There are three main “China lies” promoted by the Trump administration.
This is a war, and a new battle line has been drawn. Prevention of imported cases and resumption of production are two new fronts we must not lose. The future is still complicated and we will continue to face severe tests.
But no matter how the Trump administration tries to deceive people, their serious dereliction of duty and the consequences are clear and cannot be veneered. There is plenty of evidence showing the US federal government's slowness in dealing with the virus and Trump's downplaying of the epidemic.
The hosts, the Islamic missionary movement Tablighi Jama’at, which
traces its roots back to India a century ago, on Monday suspended
missionary activities but did not comment directly on the Malaysian
event. - NSTP/ASWADI ALIAS.
Sri Petaling tabligh the epicentre of Malaysia’s second wave of Covid-19:
WORSHIPPERS slept in packed tents outside the golden-domed mosque, waking before dawn to kneel on rows of prayer mats laid out in its cavernous central hall. All the while, the coronavirus was passing unnoticed among the guests.
The gathering held at the end of last month at the sprawling Sri Petaling mosque complex on the outskirts of Kuala Lumpur has emerged as a source of hundreds of new Covid-19 infections spanning South-East Asia.
It was attended by 16,000 people, including 1,500 foreigners.
While more than 10,000 of those who attended the event have been screened, the authorities are still trying to identify another 4,000 attendees, said Health Minister Adham Baba.
Out of Malaysia’s over 1,180 confirmed coronavirus cases as of Saturday, most of them were linked to the four-day meeting, he added. It is not clear who brought the virus there in the first place.
The hosts, the Islamic missionary movement Tablighi Jama’at, on Monday suspended missionary activities but did not comment directly on the event.
Malaysia has shut its borders, restricting internal movement and closing schools, universities and most businesses as it seeks to control the outbreak. All mosques have been closed for two weeks.
“I was actually very surprised that it went ahead,” said Surachet Wae-asae, a former Thai lawmaker who attended the event but has since tested negative for the coronavirus after returning home.
“But in Malaysia, God is very important. The belief is strong.”
The Prime Minister’s Office and the Health Ministry declined to comment further about the event.
The packed gathering, where guests had to take shuttle buses to sleep at other venues, was attended by nationals from dozens of countries, including Canada, Nigeria, India and Australia, according to an attendee list posted on social media. There were also citizens of China and South Korea – two countries with high rates of coronavirus infections.
“We sat close to each other,” a 30-year-old Cambodian man who attended the event told Reuters from a hospital in Cambodia’s Battambang province, where he was being treated after testing positive for Covid-19 recently.
“Holding hands at the religious ceremony was done with people from many countries. When I met people, I held hands, it was normal. I don’t know who I was infected by,” he said, asking not to be named due to fears of discrimination.
None of the event leaders talked about washing hands, the coronavirus or health precautions during the event, but most guests washed their hands regularly, two guests said. Washing hands, among other parts of the body, is part of the wuduk (ablution before prayers).
Another attendee from Cambodia said guests from different countries shared plates when meals were served.
That a large religious pilgrimage went ahead, at a time when the epidemic had killed 2,700 people and was spreading from Italy to Iran, has drawn criticism.
“That Tablighi event in KL ... could also cause a regional spike and it was irresponsible of the authorities to have allowed it to be held,” Singapore diplomat Bilahari Kausikan said on his Facebook page.
At the time of the event, Malaysia was in political turmoil after the power struggle between former prime minister Tun Dr Mahathir Mohamad and his successor-inwaiting Datuk Seri Anwar Ibrahim. The country had a one-man government in the 94-year-old interim prime minister, who had quit and was re-appointed on the same day. His resignation led to the dissolution of the former government.
Prime Minister Tan Sri Muhyiddin Yassin was sworn in as the new premier on March 1 and banned mass gatherings on March 13. Prior to that, there was only advice from the Health Ministry to minimise public exposure.
Some attendees defended the event, saying that at the time, the situation in Malaysia – which had 25 known cases by Feb 28 – was not yet severe.
“We were not worried then as the Covid-19 situation at the time appeared under control,” said Khuzaifah Kamazlan, a 34-year-old religious teacher based in Kuala Lumpur who attended the event but has tested negative for the coronavirus.
He said some worshippers who attended the event have since refused to be tested.
Karim, a 44-year-old Malaysian who attended the gathering and later tested positive for Covid-19, says the government should have cancelled the event.
“We are disappointed that this outbreak has been blamed on us. That view is unfair.
“There was no ban on our gathering,” said Karim, who gave only his first name.
“Now I am concerned because I am positive. Please pray for me.” — Reuters
How Sri Petaling tabligh became Southeast Asia's Covid-19 hotspot
KUALA LUMPUR: Worshippers slept in packed tents outside the golden-domed mosque, waking before dawn to kneel on rows of prayer mats laid out in its cavernous central hall. All the while, the Covid-19 coronavirus was passing unnoticed among the guests.
The Muslim gathering held at the end of last month at the sprawling Sri Petaling mosque complex here has emerged as a source of hundreds of new coronavirus infections spanning Southeast Asia.
A 34-year-old Malaysian man who attended the event died on Tuesday, Health Minister Datuk Seri Dr Adham Baba said, the first death linked to the Feb 27-March 1 event.
It was attended by 16,000 people, including 1,500 foreigners.
Out of Malaysia’s 673 confirmed coronavirus cases, nearly two-thirds are linked to the four-day meeting, Dr Adham said. It is not clear who brought the virus there in the first place.
Reuters spoke to six attendees and reviewed pictures and posts on social media, and the accounts and evidence showed several ways in which the outbreak could have spread.
The hosts, the Islamic missionary movement Tablighi Jama’at, which traces its roots back to India a century ago, on Monday suspended missionary activities but did not comment directly on the Malaysian event.
Tablighi Jama’at did not respond to a request for further comment. The mosque where the event was held was closed on Tuesday and a guest said he was one of dozens of worshippers still there under quarantine. Calls to the mosque went unanswered.
Malaysia will shut its borders, restrict internal movement and close schools, universities and most businesses, as it seeks to control its coronavirus outbreak. All mosques will be closed for two weeks.
“I was very surprised actually that it went ahead,” said Surachet Wae-asae, a former Thai lawmaker who attended the event but has since tested negative for the coronavirus after returning home.
“But in Malaysia God is very important. The belief is strong.”
The prime minister’s office and the health ministry declined to comment further about the event.
The Muslim gathering held at the end of last month at the sprawling Sri Petaling mosque complex here has emerged as a source of hundreds of new coronavirus infections spanning Southeast Asia. - NSTP pic
The Muslim gathering held at the end of last month at the sprawling Sri Petaling mosque complex here has emerged as a source of hundreds of new coronavirus infections spanning Southeast Asia. - NSTP pic
HOLDING HANDS, SHARING PLATES
The packed gathering, where guests had to take shuttle buses to sleep at other venues, was attended by nationals from dozens of countries, including Canada, Nigeria, India and Australia, according to an attendee list posted on social media.
There were also citizens of China and South Korea - two countries with high rates of coronavirus infections.
Social media posts show hundreds of worshippers praying shoulder-to-shoulder inside the mosque, while some guests posted selfies as they shared food.
It was not clear how many guests were residents of Malaysia, but cases linked to the gathering are popping up daily across Southeast Asia.
“We sat close to each other,” a 30-year-old Cambodian man who attended the event told Reuters from a hospital in Cambodia’s Battambang province, where he was being treated after testing positive for the coronavirus on Monday.
“Holding hands at the religious ceremony was done with people of many countries. When I met people, I held hands, it was normal. I don’t know who I was infected by,” he said, asking not to be named due to fears of discrimination at his mosque.
None of the event leaders talked about washing hands, the coronavirus or health precautions during the event, but most guests washed their hands regularly, two guests said. Washing hands among other parts of the body is part of Muslim worship.
Another attendee from Cambodia said guests from different countries shared plates when meals were served.
Only half of the Malaysian participants who attended have come forward for testing, the health minister has said, raising fears that the outbreak from the mosque could be more far-reaching.
Brunei has confirmed 50 cases linked to the mosque gathering, out of a total of 56 cases. Singapore has announced five linked to the event, Cambodia 13 and Thailand at least two.
Vietnam, the Philippines and Indonesia, which had nearly 700 of its citizens attend, are all investigating.
That a large religious pilgrimage should have gone ahead, at a time when the epidemic had killed 2,700 people and was spreading from Italy to Iran, has drawn criticism.
More than 182,000 people have now been infected by the coronavirus globally and 7,165 have died.
‘IRRESPONSIBLE’
“That Tablighi event in KL (Kuala Lumpur) ... could also cause a regional spike and it was irresponsible for the authorities to have allowed it to be held,” Singapore diplomat Bilahari Kausikan said on his Facebook page.
It is not the only religious event to spread the virus on a mass scale. Thousands of cases in South Korea are linked to services of the Shincheonji Church of Jesus in the city of Daegu.
At the time of the event in Malaysia, the country was in political turmoil. The country had a one-man government in the 94-year-old interim prime minister Tun Dr Mahathir Mohamad, who had quit and was temporarily re-appointed the same day.
Prime Tan Sri Minister Muhyiddin Yassin was sworn in as the new premier on March 1 and banned mass gatherings on March 13. Prior to that, there was only advice from the health ministry to minimise public exposure.
Some attendees defended the event, saying that at the time the situation in Malaysia - which had announced 25 known cases by Feb 28 - was not severe.
“We were not worried then as the Covid-19 situation at the time appeared under control,” said Khuzaifah Kamazlan, a 34-year-old religious teacher based in Kuala Lumpur who attended the event but has tested negative for the coronavirus.
Khuzaifah said some of the worshippers who attended the event have since refused to be tested for coronavirus, preferring to rely on God to protect them.
Karim, a 44-year-old Malaysian who attended the gathering and later tested positive for coronavirus, says the government should have cancelled the event.
“We are a bit disappointed that this outbreak has been blamed entirely on us. That view is unfair. There was no ban on our gathering,” said Karim, who gave only his first name.
“Now I am concerned because I am positive. Please pray for me.” - REUTERS
The hosts, the Islamic missionary movement Tablighi Jama’at, which traces its roots back to India a century ago, on Monday suspended missionary activities but did not comment directly on the Malaysian event. - NSTP/ASWADI ALIAS.
Sri Petaling tabligh the epicentre of Malaysia’s second wave of Covid-19:
WORSHIPPERS slept in packed tents outside the golden-domed mosque, waking before dawn to kneel on rows of prayer mats laid out in its cavernous central hall. All the while, the coronavirus was passing unnoticed among the guests.
The gathering held at the end of last month at the sprawling Sri Petaling mosque complex on the outskirts of Kuala Lumpur has emerged as a source of hundreds of new Covid-19 infections spanning South-East Asia.
It was attended by 16,000 people, including 1,500 foreigners.
While more than 10,000 of those who attended the event have been screened, the authorities are still trying to identify another 4,000 attendees, said Health Minister Adham Baba.
Out of Malaysia’s over 1,180 confirmed coronavirus cases as of Saturday, most of them were linked to the four-day meeting, he added. It is not clear who brought the virus there in the first place.
The hosts, the Islamic missionary movement Tablighi Jama’at, on Monday suspended missionary activities but did not comment directly on the event.
Malaysia has shut its borders, restricting internal movement and closing schools, universities and most businesses as it seeks to control the outbreak. All mosques have been closed for two weeks.
“I was actually very surprised that it went ahead,” said Surachet Wae-asae, a former Thai lawmaker who attended the event but has since tested negative for the coronavirus after returning home.
“But in Malaysia, God is very important. The belief is strong.”
The Prime Minister’s Office and the Health Ministry declined to comment further about the event.
The packed gathering, where guests had to take shuttle buses to sleep at other venues, was attended by nationals from dozens of countries, including Canada, Nigeria, India and Australia, according to an attendee list posted on social media. There were also citizens of China and South Korea – two countries with high rates of coronavirus infections.
“We sat close to each other,” a 30-year-old Cambodian man who attended the event told Reuters from a hospital in Cambodia’s Battambang province, where he was being treated after testing positive for Covid-19 recently.
“Holding hands at the religious ceremony was done with people from many countries. When I met people, I held hands, it was normal. I don’t know who I was infected by,” he said, asking not to be named due to fears of discrimination.
None of the event leaders talked about washing hands, the coronavirus or health precautions during the event, but most guests washed their hands regularly, two guests said. Washing hands, among other parts of the body, is part of the wuduk (ablution before prayers).
Another attendee from Cambodia said guests from different countries shared plates when meals were served.
That a large religious pilgrimage went ahead, at a time when the epidemic had killed 2,700 people and was spreading from Italy to Iran, has drawn criticism.
“That Tablighi event in KL ... could also cause a regional spike and it was irresponsible of the authorities to have allowed it to be held,” Singapore diplomat Bilahari Kausikan said on his Facebook page.
At the time of the event, Malaysia was in political turmoil after the power struggle between former prime minister Tun Dr Mahathir Mohamad and his successor-inwaiting Datuk Seri Anwar Ibrahim. The country had a one-man government in the 94-year-old interim prime minister, who had quit and was re-appointed on the same day. His resignation led to the dissolution of the former government.
Prime Minister Tan Sri Muhyiddin Yassin was sworn in as the new premier on March 1 and banned mass gatherings on March 13. Prior to that, there was only advice from the Health Ministry to minimise public exposure.
Some attendees defended the event, saying that at the time, the situation in Malaysia – which had 25 known cases by Feb 28 – was not yet severe.
“We were not worried then as the Covid-19 situation at the time appeared under control,” said Khuzaifah Kamazlan, a 34-year-old religious teacher based in Kuala Lumpur who attended the event but has tested negative for the coronavirus.
He said some worshippers who attended the event have since refused to be tested.
Karim, a 44-year-old Malaysian who attended the gathering and later tested positive for Covid-19, says the government should have cancelled the event.
“We are disappointed that this outbreak has been blamed on us. That view is unfair.
“There was no ban on our gathering,” said Karim, who gave only his first name.
“Now I am concerned because I am positive. Please pray for me.” — Reuters
How Sri Petaling tabligh became Southeast Asia's Covid-19 hotspot
KUALA LUMPUR: Worshippers slept in packed tents outside the golden-domed mosque, waking before dawn to kneel on rows of prayer mats laid out in its cavernous central hall. All the while, the Covid-19 coronavirus was passing unnoticed among the guests.
The Muslim gathering held at the end of last month at the sprawling Sri Petaling mosque complex here has emerged as a source of hundreds of new coronavirus infections spanning Southeast Asia.
A 34-year-old Malaysian man who attended the event died on Tuesday, Health Minister Datuk Seri Dr Adham Baba said, the first death linked to the Feb 27-March 1 event.
It was attended by 16,000 people, including 1,500 foreigners.
Out of Malaysia’s 673 confirmed coronavirus cases, nearly two-thirds are linked to the four-day meeting, Dr Adham said. It is not clear who brought the virus there in the first place.
Reuters spoke to six attendees and reviewed pictures and posts on social media, and the accounts and evidence showed several ways in which the outbreak could have spread.
The hosts, the Islamic missionary movement Tablighi Jama’at, which traces its roots back to India a century ago, on Monday suspended missionary activities but did not comment directly on the Malaysian event.
Tablighi Jama’at did not respond to a request for further comment. The mosque where the event was held was closed on Tuesday and a guest said he was one of dozens of worshippers still there under quarantine. Calls to the mosque went unanswered.
Malaysia will shut its borders, restrict internal movement and close schools, universities and most businesses, as it seeks to control its coronavirus outbreak. All mosques will be closed for two weeks.
“I was very surprised actually that it went ahead,” said Surachet Wae-asae, a former Thai lawmaker who attended the event but has since tested negative for the coronavirus after returning home.
“But in Malaysia God is very important. The belief is strong.”
The prime minister’s office and the health ministry declined to comment further about the event.
The Muslim gathering held at the end of last month at the sprawling Sri Petaling mosque complex here has emerged as a source of hundreds of new coronavirus infections spanning Southeast Asia. - NSTP pic The Muslim gathering held at the end of last month at the sprawling Sri Petaling mosque complex here has emerged as a source of hundreds of new coronavirus infections spanning Southeast Asia. - NSTP pic
HOLDING HANDS, SHARING PLATES
The packed gathering, where guests had to take shuttle buses to sleep at other venues, was attended by nationals from dozens of countries, including Canada, Nigeria, India and Australia, according to an attendee list posted on social media.
There were also citizens of China and South Korea - two countries with high rates of coronavirus infections.
Social media posts show hundreds of worshippers praying shoulder-to-shoulder inside the mosque, while some guests posted selfies as they shared food.
It was not clear how many guests were residents of Malaysia, but cases linked to the gathering are popping up daily across Southeast Asia.
“We sat close to each other,” a 30-year-old Cambodian man who attended the event told Reuters from a hospital in Cambodia’s Battambang province, where he was being treated after testing positive for the coronavirus on Monday.
“Holding hands at the religious ceremony was done with people of many countries. When I met people, I held hands, it was normal. I don’t know who I was infected by,” he said, asking not to be named due to fears of discrimination at his mosque.
None of the event leaders talked about washing hands, the coronavirus or health precautions during the event, but most guests washed their hands regularly, two guests said. Washing hands among other parts of the body is part of Muslim worship.
Another attendee from Cambodia said guests from different countries shared plates when meals were served.
Only half of the Malaysian participants who attended have come forward for testing, the health minister has said, raising fears that the outbreak from the mosque could be more far-reaching.
Brunei has confirmed 50 cases linked to the mosque gathering, out of a total of 56 cases. Singapore has announced five linked to the event, Cambodia 13 and Thailand at least two.
Vietnam, the Philippines and Indonesia, which had nearly 700 of its citizens attend, are all investigating.
That a large religious pilgrimage should have gone ahead, at a time when the epidemic had killed 2,700 people and was spreading from Italy to Iran, has drawn criticism.
More than 182,000 people have now been infected by the coronavirus globally and 7,165 have died.
‘IRRESPONSIBLE’
“That Tablighi event in KL (Kuala Lumpur) ... could also cause a regional spike and it was irresponsible for the authorities to have allowed it to be held,” Singapore diplomat Bilahari Kausikan said on his Facebook page.
It is not the only religious event to spread the virus on a mass scale. Thousands of cases in South Korea are linked to services of the Shincheonji Church of Jesus in the city of Daegu.
At the time of the event in Malaysia, the country was in political turmoil. The country had a one-man government in the 94-year-old interim prime minister Tun Dr Mahathir Mohamad, who had quit and was temporarily re-appointed the same day.
Prime Tan Sri Minister Muhyiddin Yassin was sworn in as the new premier on March 1 and banned mass gatherings on March 13. Prior to that, there was only advice from the health ministry to minimise public exposure.
Some attendees defended the event, saying that at the time the situation in Malaysia - which had announced 25 known cases by Feb 28 - was not severe.
“We were not worried then as the Covid-19 situation at the time appeared under control,” said Khuzaifah Kamazlan, a 34-year-old religious teacher based in Kuala Lumpur who attended the event but has tested negative for the coronavirus.
Khuzaifah said some of the worshippers who attended the event have since refused to be tested for coronavirus, preferring to rely on God to protect them.
Karim, a 44-year-old Malaysian who attended the gathering and later tested positive for coronavirus, says the government should have cancelled the event.
“We are a bit disappointed that this outbreak has been blamed entirely on us. That view is unfair. There was no ban on our gathering,” said Karim, who gave only his first name.
“Now I am concerned because I am positive. Please pray for me.” - REUTERS
IT is trying times for everyone as the global financial world melts down but the order of the day is really to stop the spread of coronavirus (Covid-19) so that some normality could return.
Ironically, two things seem to be rising amid the turmoil – the demand for toilet paper caused serious fights in supermarkets across the globe and this has gone viral across various networks.
The other is the US dollar. Its rise has many reasons.
Everything else, including stock markets, oil, bonds, commodities, currencies and bitcoin are plunging to new lows with no clear signs of immediate reversal. Just in a month the FBM KLCI is down by 20% while the Dow Jones Industrial average 31%.
The rise in demand for toilet paper cannot be comprehended but the rise of the US dollar in a mayhem is understandable. Corporations across the global are rushing to draw down credit lines and seek the US dollar for their funding needs.
In fact, people are scrambling for the US dollar and as a report said “world markets are still very, very nervous ...people are scrambling for cash any way they can.’’
Ringgit against the US dollar has reached the RM4.41 range.
Bonds are also seeing the biggest wave of withdrawals since 2017 and gold has fallen as there are concerns of a global economic recession.
The timing of the Saudi Arabia-russia oil price war was shocking and a report said it is a “risky move likely to further destabilise a world economy that is already wobbly with the pandemic.’’
Oil has plummeted to about US$30 a barrel and experts believe it could plunge to US$20 a barrel though the Us-trump Administration may intervene as US producers are suffering from the historic crash in prices.
Amid all these fears, governments across the globe are coming out with stimulus packages to help its citizens and businesses. It is a much needed aid as many countries have enforced total lockdown and people on daily jobs need money for survival. The US alone is forking out US$1 trillion in aid. Other countries have set aside billions of dollars including Malaysia Rm20bil.
StarBiz compiled by B.K. SIDHU & EUGENE MAHALINGAM
Profiting from market downturn
Investment strategy: The benefit of dollar-cost averaging is that you don’t have to monitor the price movement and you don’t have to make a decision every time you want to invest. In fact, dollar-cost averaging is quite a no-brainer strategy.
MOST people tend to be very bearish about the stock market after a crash. In fact, most investors would feel that it would be best to avoid the stock market for now.
Some may even want to cut their current investment losses and get out of their investments in equities, even though seasoned investors would tell you that the best opportunity to enter the market would be after a market crash
Following the recent global stock market downturn, market sentiments, the desire and motivation to invest is at an all-time low. Understandably so, after all, once bitten twice shy.
However, the legendary “Oracle of Omaha” and one of the most successful investor of all time, Warren Buffett, once said that as an investor, it is wise to be “fearful when others are greedy, and greedy when others are fearful.”
It’s hard, if not impossible, to convince oneself to invest when the whole world is panicking.
On one hand, you think the market crash is so sharp that you are fearful it may drop even further. On the other hand, you can clearly see that premium stocks are now trading at a great discount, and hence now would be a great opportunity to snap them up. What should you do?
If this is your dilemma, there’s an investment strategy that can help you to take advantage of the market downturn and allay your fear: the method is called dollar-cost averaging.
How dollar-cost averaging operates
Dollar-cost averaging is a strategy to invest a specific amount of money in the market at routine intervals (monthly, quarterly, half-yearly or yearly). Done right, you can protect yourself against fluctuations and downside risk in the market.
For example, instead of investing a lump sum of, say, RM120,000, you invest RM10,000 a month over one year. By doing this, you average out the cost of investments over an extended period of time. This is to make sure you don’t invest all your money at the peak of the market.
On the other hand, this strategy works especially well in an extended market downturn (like what you expect now) as you will keep buying at lower and lower prices until the market recovers.
For example, you invest RM1,000 in an equity unit trust fund at RM1 per unit. So, you end up with 1,000 units. The following month, you invest another RM1,000 in the same fund but because the unit price has dropped to 50 sen, you end up with 2,000 units.
So, what is the average cost of all your units? If your answer is 75 sen, you’re wrong. That’s because you have used the arithmetic mean (RM1+50sen/2>75 sen). You should use the harmonic mean.
This is how to calculate the average cost of all your units correctly: Your total investment is RM2,000 and you have 3,000 units of the fund. Divide RM2,000 by 3,000 units and the average cost is 67 sen. This means by using harmonic mean calculation, dollar-cost averaging gives a lower average cost.
How it helps you to profit from current market
Now, let’s see how we can apply dollar-cost averaging strategy to the current market scenario. You’re bearish about the market and think it will go down for another six months.
Dollar-cost averaging works well if you believe the market will continue to go down.
With reference to Table 1, if you invest RM1,000 a month for the next 12 months, you would have invested RM12,000 and accumulated 25,648 units at the end of the period. At 80 sen (which is lower than the original price), your investment value at the end of the period is RM20,518 (80 sen x 25,648 units).
It means that you would have gained RM8,518 (RM20,518 – RM12,000). That’s a 71% gain over 12 months, despite the fund price being beaten down by as much as 78% (90 sen – RM0.20 = 70 sen, then divided by 90 sen = 78%).
Why it can help you
Dollar-cost averaging is a discipline that can help investors overcome their emotion, dilemma and other human feeling when it comes to investing, be it fear or greed. We’re always tempted to invest when the market is high and so we end up buying high instead of buying low. With dollar-cost averaging, we’re automatically programmed to buy less units at higher prices and more units at lower prices instead.
Thus when the market crashes and prices are low like now, we would be empowered to invest, not react out of fear.
For this strategy to work, you would need to invest a specific amount of money at specific intervals, say RM10,000 a month over one year, no matter what the market condition is in. If you think that the market may crash and rebound in a shorter period, you may want to implement the strategy within one month. For example, RM30,000 a week over a one-month period. It does not matter which interval, what’s important is that it’s done consistently.
Your current investment strategy to buy only when the price has dropped to a certain “attractive” level is commendable. However, to execute this strategy well, you must be disciplined enough to monitor the market movement closely and spend time and energy to decide when would be the right time to buy the investment.
The benefit of dollar-cost averaging is that you don’t have to monitor the price movement and you don’t have to make a decision every time you want to invest. In fact, if you’d ask me, dollar-cost averaging is quite a no-brainer strategy.
How to make dollar-cost averaging work better
Dollar-cost averaging offers the most benefit when you invest in investments whose prices are highly volatile (move up or down in a big quantum).
An investment that is highly volatile is often perceived as a risky investment. However, this risk plays to your advantage when dollar-cost averaging is applied. How so? The strategy helps to perform an efficient accumulation of investment units. When a particular investment drops significantly in price, you get to accumulate more units. The bigger the drop, the more units you accumulate, thus your accumulation is more efficient (you get to buy the units at a cheaper price).
In comparison, if you invest in an investment that has low volatility, the drop in price would be too small and you can only accumulate a few units, thus rendering your accumulation to be less efficient.
Therefore, when you apply dollar-cost averaging strategy on your unit trust portfolio, go for equity funds. Avoid money market funds or bond funds.
Warning: Don’t apply dollar-cost averaging strategy on a single share. There’s usually an underlying reason why the price of a particular share is in a continuous downward trend. In such circumstances, there’s no assurance that the price will ever go up when the whole market rebound. Worst, the share may not even survive the tough economic crisis and ends up getting delisted.
Do remember that for dollar-cost averaging to work, your chosen investment must be resilient enough to rebound when stock market recovers.
Dollar-cost averaging is best suited if you have a portfolio of equity unit trust funds that is diversified into various regions, so that risks is spread across the share of many companies.
Act on it
To truly benefit from dollar-cost averaging, you have to apply it to your investments. During the implementation process, your resolve would be tested.
There will be times where you will be tempted to abandon the strategy especially when the price of your investment has dropped even further.
Do not waver! Be discipline in executing your strategy and enjoy the gains when the market recovers. Onwards and upwards.
- Yap Ming Hui (ymh@whitman.com.my) is thrilled that his mission to empower every Malaysian with a roadmap to financial freedom has finally come to fruition with the release of a free DIY roadmap to financial freedom tool on the iWealth mobile app. The views expressed here are the writer’s own.
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