Thursday, December 29, 2011

Say NO to Passive Smoking 6

My father used to be a heavy smoker. He does not like to be passive smoker even though he was a smoker. That's why he never smoke at non-smoking areas. I am glad that he managed to quit smoking for health sake recently.

Today afternoon, we have visited to one of the Pappa Rich cafe in Klang Valley. We were seated at the air-conditioned area which is also an area that smoking is prohibited. The smoking area will be at the tables along the open air walkway).

While we were sipping our cup of tea and coffee, the annoying cigarette smoke irritated me. It was puffed out from a selfish culprit that smoked in the non-smoking area.

Selfish smoker

"I need air-cond, but wanted to smoke also, syiok!"
"Don't worry buddy, nobody will come after me smoking at prohibited area, this is Malaysia."

Monday, December 26, 2011

6th Google Adsense Pay Cheque Received

The sixth Google Adsense pay check (cheque) arrived last week. It has been quite a while since I received the fifth pay check from Google Inc 6 months ago.

Marco's 6th Google Adsense Pay Check
I have been very quiet for a while, and have very less posting in 2011. But, the Google Adsense earning does perform consistently with slight increment in term of earning per month.

Maybe I shall set some goals to transform Google Adsense earning as one of the main income streams.

Current Performance
2011:  2 pay checks per year (half yearly)

2012:  4 pay checks per year (quarterly)
2013:  6 pay checks per year (bi-monthly)
2014:  8 pay checks per year
2015: 12 pay checks per year (monthly) 

I believe the above target is realistic and achievable. Don't you think so?

Taiping Mali Cafe at Bandar Puteri Puchong is Closing Down

About a year ago,  I have expressed my frustration towards the price and the quality of the foods & beverages served at Taiping Mali Cafe via the post titled Taiping Mali Cafe at Bandar Puteri Puchong.

The post has received quite a number of comments from readers that shared the same experience like me.

Taiping Mali Cafe at Bandar Puteri Puchong is closing down. Good location and trendy renovation is not helping the Taiping Mali Cafe, to be a survivor in restaurant or F&B business, foods quality comes first, and the business sustainability will need to be supported by reasonable price. Location and renovation will only be able to add value to the business if the two main criteria which is foods quality & reasonable price are fulfilled.

Recently, the lifestyle restaurants are mushrooming the Klang Valley cities like Bandar Puteri Puchong and Sri Petaling. I have tried some of them, half of them served awful factories processed foods and yet asking for premium price. Just wonder how many of them can survive the business for more than 12-month.     

Monday, December 12, 2011

Toyota Hilux PGV2825 - What a selfish road user!

Parking space is limited in most of the commercial areas in Klang Valley. Yet, there are still selfish drivers that double park, triple park, illegal park and occupy multiple parking space for own convenience.

What do you think of the personalities of the driver of Toyata Hilux with car plate number PGV2825? What a selfish road user with no consideration to others.

Friday, December 02, 2011

Is the EPF (KWSP) being looted?

On the 23rd of June 2011, the EPF (KWSP) tabled its annual report to the parliament, declaring a 5.8% dividend and explained that 27% of its investments were in Malaysian Government Securities (MGS) and 32% were in loans and bonds to government agencies. A simple chart below summarized the report. At RM 440.52 billion, the EPF is one of the largest funds in the world and represents the life time savings of 12 million private sector employees.

The question is why is it that over 60% of EPF funds are in loans to the government and government bodies? Is the Malaysian Government a good borrower?

Let’s look at the BN Government’s financial record. Below is a summary of the government annual deficits. The 2012 budget will mark the 15th year of budget deficit with no signal of financial prudence. And as you can see below, there have been supplementary budgets on top of the annual budgets every single year.

Government debt as at Dec 2010 stands at 407 Billion Ringgit Malaysia (MYR). 60% of this or 240 Billion is owed to the EPF. This means the BN Government of Malaysia has already spent 60% of all your savings in the EPF!

After running deficit budgets for 14 consecutive years, and funding those deficits by borrowing, Malaysian Government Securities (MGS) are rated at CC(-)ve. At CC minus, what is the annual yield? Folks, it’s an unbelievable 3%and below! Why? Because MGS are not auctioned!! There is a ready buyer for MGS and apart from the endless new PNB funds like the 1Malaysia bond, the main buyer of Malaysian debt papers is the EPF.

“Fair Value” rate for lower grade papers of single A and below is an annual yield of 5% and above. Greek Government bonds for example are being traded at yields exceeding 21% per annum.

The constitution of Malaysia caps Government debt at 55% of GDP. As at 30th June 2011, Government debt stands at 433 billion, which is 53% of GDP. At 55% the Government will be officially in crisis and the constitution will need to be changed to increase borrowing and possibly even require a bail out.

Recently the EU central bank agreed to extend financial aid to the Government of Greece on the condition they adopt massive austerity measures and that the lenders take a haircut of 50% of all outstanding loans. After all, they continually lent to a borrower who showed absolutely NO commitment to cut expenses and begin to service their debts. Just imagine if the EPF is asked to take a 50% haircut of their debts from the Malaysian Government!

An even worse scenario was painted recently by Pakatan Rakyat when they reported that much of government debt was unreported as it is largely hidden from public eye in the form of debt owing by Government agencies.

As you can see above, the 433 billion owed by the Government is represented by the red and Orange bars. On top of official figures, an additional 184 billion is owed by various Government agencies.

Take a look here at another explanation.

So…. Is the EPF being looted? I say yes it is. Let me explain how.

A summary on the 2012 budget is below,

Of the total 233 billion, total operating expenses is at 162 billion and over 64 billion is allocated for the civil service in pensions and wages. Of the massive 233 billion, only 51 billion is going to development, of which over 80% is to construction projects, designed to specifically benefit a few lucky fellows. And talking about lucky fellows, over 10 billion in subsidies paid for by us, are being paid directly to corporate bodies!

And how pray tell will they pay for all this? By borrowing of course! Do they even bother that it is we who will be paying for the debt servicing including interests? Najib even announced that employee’s contribution to the EPF will increase to 12% of salary. Which means even more will be tied up in the EPF in order to enable more borrowing! And if you earn less than RM 5,000, your contribution will increase to 13%.

These are indeed hard times for us, the people. And the Government has done fabulously well to recognise this by granting pay increments of 7 to 13% to all Government employees while carefully avoiding the minimum wage issue for private sector employees.

The Government currently collects about 4 billion from the GST already in place. A one time payment of RM 500 to civil sector employees will cost the Government over 2.6 billion.

Civil service remuneration cost 20 billion in 2004. This year it will cost 64 billion.

So the bottom line conclusion, again and again is the same. They are looting the EPF to please their vote bank of 1.3 million civil servants.

Hard times indeed… And yet DRB-Hicom is buying 237 armoured personnel carriers from Turkey for RM 1.7 billion and selling it to the ministry of defence for RM 7.55 billion. The Malaysian Government is buying 6 Littoral Combatant Vessels to enhance our Navy. These are the most advanced naval vessels in the world, able to shoot aircraft, ships and submarines… The ONLY other country that has such ships is the US navy. They have 2. We are buying 6 at a cost of 10 billion ringgit. The MRT can be built for 19 billion. But Idris Jala recently indicated that MMC Gamuda may incur more that the originally estimated cost of 54 billion to build it.

The Government can reduce its subsidies for rice and sugar by opening up the market for other players, but no, both commodities are controlled by the same Government crony. Syed Mokhtar Al Bukhary is the owner of all the companies mentioned above. Since this person took over the exclusive supply of these commodities in 2008, prices have doubled. This is despite the Government’s subsidy of 60 cents per kilo of rice and 20 cents per kilo of sugar.

The Government can easily buy the LDP highway for 1.5 billion ringgit, but no, it’s probably better that they continue to collect toll from us and receive 1.5 billion in subsidy from the government. Our IPPs buy gas at 10 Ringgit cheaper than companies in Thailand and 15 Ringgit cheaper than Singapore (Per CuM) but the Government still needs to feed them billions in subsidy.

Year after year after year, the Auditor General’s annual report details all the financial mismanagement in Government depts. But nothing is done. Take this year’s AGs report for example. The MACC went into high gear and opened 36 investigation files to investigate all the rubbish. And the cases are now closed. They found no element of corruption or deceit. Another thing the AG highlighted is the treasury’s contingency fund of 1.5 billion is now only 79 million Ringgit. 1.4 billion is missing…

The tolled highways were built at a cost of 26.4 billion and the operators have already raked in 37.7 billion and received another 2.1 billion in subsidies from the Government. And they are planning to raise the rates again soon.

The Government machinery of Barisan National is a system that benefits and enriches cronies with massively one sided contracts. It also ensures loyalty from a vote bank of 1.3 million civil servants who enjoy all kinds of benefits at the expense of the tax payer. The tax system is designed to exclude the majority of civil servants from actually paying any tax. And Government debt is going through the roof. In 2004, the total Government debt was 217. As at 30th June 2011, it stands at 433 billion. Najib’s administration is milking us dry. And they are using our funds in the EPF to run all these excesses, to enrich themselves, and to bribe the civil service into loyalty.

We EPF investors are 12 million in population. Vote against corruption, vote against poverty, and vote against the looting of your EPF savings. -Anonymous

Why fund the Barisan Nasional government if you are against their policies?

Since August 2011, I have started to move out part of my savings in Malaysia and invest in Singapore.

This is because I see no reason for me to fund the government that I do not trust. And, if the Lynas Rare Earth Processing Plant in Kuantan is approved for operation, I will dispose all of the Amanah Saham Unit Trust and withdraw all the available fund in account2 (KWSP) and park them in Singapore.

You do not need to wait for a general election to express your unhapiness on the existing ruling government. On top of the vote, one can pressure the government by withdrawing your money from all the funds that buying the Government Bonds.

Main Malaysia Government Bonds Buyers:
2. Unit Trust managed by Permodalan Nasional Berhad (PNB)
3. Fixed deposits under GLC banks (Maybank, CIMB, BSN, Agro Bank)

It is too easy for Malaysia government to issue bonds (debts) because there are ready government bonds buyer like KWSP and PNB.

It is not a good sign when PNB is launching a new unit trust (like Amanah Saham 1 Malaysia). The owner of PNB is the government. When the government need money, bonds will be printed. PNB will then raise fund by introducing new unit trust product or expand the fund size of existing unit trusts in order to buy the bonds.

Citizens who invest in the PNB unit trusts is paying real money to PNB in exchange of a booklet. PNB will then used the money to buy the government bonds (debts).

Why fund the Barisan Nasional government if you are against their policies?

Not convinced? Read below post:
Is the EPF (KWSP) being looted?


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