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Monday, 11 February 2013

How are Malaysia ever to match South Korean Psy's Gangnam Style?






MP SPEAKS On the occasion of South Korean pop superstar Psy's Gangnam Style performance at the Prime Minister's CNY Open House in Penang today, will Najib Abdul Razak make a statement whether Malaysia can ever catch up with South Korea or at least begin to close the yawning chasm between the two countries?

A cabinet minister said Psy's appearance will make Penang world-famous but it is more important that Penang and Malaysia become world-famous because of our own achievements in all fields of human endeavour.

Sixteen years ago, when we proclaimed the Multimedia Super Corridor as "a gift to the world", Malaysia and South Korea were on the same level embarking on the IT journey.

Today, MSC and Malaysia have faded away from the world radar screen as an international IT hot spot, while South Korea has powered ahead to become the first country in the world to become a broadband society as well as the land of fastest internet in the world - with an average internet speed in 2012 of 14.7 Mpbs, 650 percent higher than the average 2.2 Mpbs registered in Malaysia.


Among the worst 

In fact, Malaysia is ranked among the world's worst nations in internet speed - even slower than Thailand's average internet speed of 2.9 Mpbs for 2012.

In good governance, Malaysia trails behind South Korea especially in the Transparency International Corruption Perception Index in the past five years, where Malaysia is perceived as more corrupt, ranging No. 47 to 60 in world ranking in contrast to South Korea's ranking from 39 to 45.

In the latest 2002 World Press Freedom Index compiled by Reporters Sans Frontieres (Reporters Without Borders), Malaysia hit a historic low in ranking at No 145 while South Korea is ranked No 50.

rais yatim akademi seni convocation 211206 graduateRecently, the 2011 Trends in Mathematics and Science Survey (TIMSS) highlights that Malaysia is the country which suffered the biggest drop in scores among all participating countries for both mathematics and science, while confirming the continuing domination by a group of Asian education systems - South Korea, Singapore and Hong Kong - in these two critical subjects.

Malaysia woefully lags behind South Korea in educational excellence. In the Times Higher Education World University Rankings 2012-2013, four South Korean universities are listed among the World Top 200 universities while six in the World Top 400 universities - but not a single one from Malaysia.

Has Najib any answer to the question why Malaysia is lagging so far behind South Korea in all fields of human endeavour, when 56 years ago when Malaysia achieved Merdeka, South Korea was poorer and more backward but is now two or three times richer than Malaysia?


By Lim Kit Siang

Related post:
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Sunday, 10 February 2013

Vowing to be different with the nuptials

Younger generation seeks to enjoy a modern style of marriage ceremony
A groom helping his bride to finish her makeup before their wedding ceremony in Zhengzhou, the capital of Central China's Henan province.[Photo/China Daily]

BEIJING: Wang Xiaoqiang, a 26-year-old white collar worker in Shanghai, doesn’t really care that the Year of the Snake 2013 is not regarded as a propitious year for weddings.

“I was told Lunar 2013 is not a good year to get married but that is something believed by elderly people,” said Wang.

According to the Chinese Lunar Calendar, there will be no li chun (the beginning of spring, one of 21 four-solar terms) during Lunar 2013. Some Chinese media have quoted Chinese experts as saying that it is “feudal superstition” to say Lunar 2013 will be “a widow year”, which means women who get married this year will suffer bad luck.

The reality is the young generation do not take the traditional belief seriously. Experts say there will be no significant effect on wedding-related commerce in 2013.

Wang is busy with matters such as booking pre-wedding photos and a video and looking for a place to hold his wedding banquet for his nuptials in October.

“Many people rushed to tie the knot on Jan 4, 2013, because they believe they will love each other forever if they get married on that day. But news reports said four couples who got married on that day have already divorced. How do you explain that? That day is not in the Year of the Snake,” Wang said with a big smile.

The pronunciation of 1314 (Jan 4, 2013) is similar to yi sheng yi shi (love you for a lifetime), making it one of the most romantic days on which to wed. There were 7,300 weddings in Shanghai that day.

Wang’s view is shared by He Lina, secretary-general of the Shanghai Wedding Celebration Association.

“Many people have asked my opinion about the so-called “widow year” and the possible effects on the wedding industry. What I want to say is it is superstition without any scientific support and there will be no significant impact on the wedding industry,” she said.

Looking around China, it seems the wedding-related business is not being affected by the “widow year”. Chinese media have already reported that in Shenyang, the capital of Northeast China’s Liaoning province, and Hefei, capital of East China’s Anhui province, wedding banquets to be held during this year’s May Day Holiday and the National Day Holiday in October are almost fully booked.

She admitted that there will be fewer people getting married in 2013. However, she said it was not caused by the “widow year”. According to He, there will be 100,000 people holding wedding ceremonies in Shanghai in 2013, compared with 120,000 in 2012.

“Many people born during the baby boom of the 1980s have already got married so there will be fewer people getting married in 2013,” she added.

He said the Shanghai Wedding Celebration Association forecast there would be lower demand in the wedding-related markets. Businesses in the wedding industry have been advised to up their game by improving service quality and presenting more cultural elements in the planning process.

Compared with the older generation who like to check the almanac to see which year or which day is suitable for a wedding, the young generation are more concerned with how to make the ceremony more memorable.

“We want to do something different and try to make it more impressive,” said Wang.

Having attended several wedding ceremonies over the years, Wang said wedding ceremonies are becoming predictable and too similar.

“You can figure out what will be presented even before the wedding banquet takes place,” said Wang. “The processes and content are so similar”.

To ensure guests do not get bored, Wang said he plans to play a short film before his wedding ceremony to introduce him and his bride. It will last three to five minutes.

“We will tell guests who we are and how we got to know each other. We will also want to share the happiness we have enjoyed during our love affair,” said Wang. “We believe every couple has a different story to tell, which can make the process lots of fun”.

Short films have become one of the most popular wedding services demanded by young couples in recent years. To ensure the best outcome, some couples will invite short film producers to shoot films overseas, paying all the bills themselves. The cost can be as high as tens of thousands of yuan.

“Many people watch idol dramas from Taiwan or South Korea so they have some ideas they want to present at their wedding ceremony. We help them to make their dreams come true,” said Ba Si, chief wedding planner with Summer-Vision Wedding Planning Studio in Shanghai.

Summer-Vision has generated high ratings for its services and product quality on www.dianping.com, a website for people to review and comment on the service quality they have received in China.

“Normally, young couples will provide outlines and ideas and we will help them to make it into a full story with certain scenes,” said Ba Si. “We believe the film will present the life of the young couple in a true and alive manner.”

The average price for an ordinary short film ranges from 6,000 yuan (RM3,000) to 8,000 yuan (RM4,000). The more requests, the higher the price is charged. The length of shooting time also affects the price. Ba Si says his company receives about eight orders a month for short films.

The demand from young people for personalised products is not limited to bringing new concepts and services to their wedding ceremony. Changes can also be seen in traditional products, for instance, wedding candy and its packaging.

In the 1990s, White Rabbit-branded candy produced in Shanghai was popular as a gift for wedding guests in China. In the earlier 2000s, imported Dove and Ferrero chocolate gained in popularity.

These days, industry experts say people still like Ferrero and Dove but are also looking for something unique.

"Other imported candy such as Italian-made Baci chocolate have been well received by the Chinese in recent years because young people want their guests to try something with a different taste," said Wu Chaohui, the founder of Zhenpinxuan in Shanghai. Zhenpinxuan is a retailing company specializing in wedding candy and liquor.

To make sure wedding candy can catch guests' attention straightaway, Wu formed an innovation team to design its packaging. The five-member team travels overseas every year to see what is new in the market and bring new ideas to the Chinese market.

"The cost of wedding candy packaging is a little high but the design is unique and you cannot find it elsewhere in the market," said a buyer surnamed Yang, who declined to reveal his full name. Yang ordered 500 packages in the shape of fish in 2012. "The feedback I received from guests was that it was unique," he said.

The increasing demand for personalized products might also help boost demand on e-commerce platforms. Many customers in smaller cities outside Beijing and Shanghai might visit online platforms to find new designs.

"The online platform can offer a much wider range of choice for us at better prices," said Li Dong, a resident of Ma'anshan in Anhui province.

Xie Yu and He Wei contributed to this story.tangzhihao@chinadaily.com.cn

By TANG ZHIHAO CHINAdaily.com.cn/ Asia News Network

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Saturday, 9 February 2013

Views by market research analysts, would the Snake bite 2013?

The 12-year zodiac has turned from the last year dragon to Snake 2013. Would the snake bite as the snake's reputation might be? Remember 2001 was the year of the 9/11!

Welcome to Year of the Water Snake! Snake is the Yin to last year's Dragon Yang. That said, Snake does not settle for mediocrity, either. We're likely to see significant developments in the area of science and technology this year. Research and development are apt to flourish. This is a Water year as well, the element most closely associated with education and research, making 2013 a very special year for scientists and scholars. Snake is a great sign, a positive one, with energy that can help us face all of the challenges ahead of us. Let's take advantage of this vibrant influence to improve our lives -- and our world!

THE world markets have always been a subject of focus whenever a brand new year comes a-calling.

Will they perform well or are investors in for a tough time?

As usual, while some have looked to the study of feng shui to predict how markets will perform and react in this Year of the Water Snake, a few analysts and fund managers have mostly chosen to stick to regular facts and figures when giving their opinions.

Here are the views of some of them randomly selected by StarBizWeek.
VINCENT KHOO
Head of research
UOBKayHian Research

Do you believe in using feng shui to predict market movements?

For fundamental research, we do not take feng shui into consideration

What are your top picks in the Year of the Snake? Why?

The over-riding investment theme for the year's market is laggards. Market laggards dominate our “buy” list.

We also advocate three categories of stocks to focus on for timing purposes. These are stocks which are immediate “buys” such as high-yielding stocks including number forecast operators and construction stocks, noting that positive newsflows are already emerging, stocks to accumulate on slight weakness such as telecommunication stocks, and stocks to accumulate on deeper retreats, such as the perceived politically-linked stocks which feature exciting growth prospects

Our contrarian view includes being overweight on construction stocks.

What are some of your “predictions” for financial markets this year?

The local market has predictably fallen after a short year-start rally. We expect a significant retreat in small-mid caps after an impressive January-Effect' rally. We also expect market to dip further before elections, but downside is limited, and it should recover significantly thereafter.

THOMAS YONG
Chief executive officer
Fortress Capital Asset Management (M) Sdn Bhd

Do you believe in using feng shui to predict market movements?

We don't use feng shui in our work.

What are your top picks in the Year of the Snake? Why?

In Malaysia, our top picks are UMW Holdings Bhd and CIMB Group Holdings Bhd. Despite a return of 70% in the year of 2012, we think that the prospects for UMW continue to remain bright.

The automotive division has been performing well as its Toyota brand continues to gain market share, while the Perodua brand dominates the budget segment.

Earnings contribution from the oil and gas division has improved vastly and the earnings momentum is likely to pick up in coming years, buoyed by the potential of raising funds via an initial public offering.

In the near-term, weakening of the US dollar and Japanese yen arising from quantitative easing would also be favourable to UMW Holdings.

CIMB Holdings has been delivering consistent earnings but its share price has under-performed the market, due to political concerns in Malaysia.

The group actually derives about 40% of earnings outside Malaysia and the overseas earnings contribution is expected to increase further with the strategic regional expansion.

Besides positive enhancement of the CIMB brand, its recent acquisition of Royal Bank of Scotland investment banking operations has also provided CIMB Group with an established platform to compete internationally.

Notwithstanding the solid fundamentals of the two stocks, one need to be cautious in determining the entry level for the stocks in light of the recent market volatility on the back of election politics.

What are some of your “predictions” for financial markets this year?

As the US and Japan are expected to continue with quantitative easing, we expect interest rates to stay low for the year 2013, stoking asset inflation.

While alternative investment such as property has traditionally proven to be a good asset inflation play, the sector will likely face continued policy curbs.

Taken with sight of economy recovery led by China and the United States, we believe equity as an asset class provides a very attractive risk return potential.

HWANGDBS VICKERS RESEARCH
MALAYSIAN RESEARCH TEAM

Do you believe in using feng shui to predict market movements?

Feng shui is just an additional tool used to make certain predictions.

Our bread-and-butter research approach has always been fundamental analysis supported by technical analysis.

What are your top picks in the Year of the Snake? Why?

Against a turbulent market backdrop, the benchmark FBM KLCI could swing between 1,500 and 1,750 going forward, and probably settle at our fundamentally-driven end-2013 target of 1,690 (based on one-year forward P/E of 14 times.

Hence, investors should view any market dips as buying opportunities to ride on the subsequent recoveries.

The Year of the Snake may bring good luck to industries linked to earth, metal and water elements, such as property, construction, petroleum and banking.

By being defensive, investors are expected to flock to sectors or stocks that generate strong operating cash flows and pay appealing dividend yields such as Pos Malaysia, Maybank and KLCC Property, to name a few.

What are some of your “predictions” for financial markets this year?

On the global economic front, we should see continuous gradual recovery supported by an underlying positive mood.

The recurrence of an economic fallout in the United States or a financial blow out in eurozone can happen, which can then force a downward spiral in investors' confidence.

KALADHER GOVINDAN
TA Securities
Head of research

Do you believe in using fengshui beliefs to predict market movements?

I wish predicting market behaviour could be that easy. Feng shui or even the much older Indian version, Vastu, for that matter gives you a “common sense” perspective on how certain things should be done in harmony with nature to reap the maximum benefits for health and well being but it is not a single criterion that binds everything for success or wealth.

What are your top picks in the Year of the Snake? Why?

Sell-on-strength, especially overvalued defensive plays in the consumer, healthcare and telco sectors, and turn cash-heavy to accumulate high beta plays in domestic sectors, which are mainly related to construction, oil and gas and property sectors, in the first half of 20 13. The banking sector holds good buys based on their attractive valuation, still robust loan growth and bright chances of benefiting from ongoing domestic expansion .

What are some of your “predictions” for financial markets this year?

Issues in Europe will last longer. The structural flaws cannot be undone overnight but expect bouts of positive improvements to kick in the second half of 2 013 as fats are trimmed and jobs created. China could revive its domestic growth without stoking inflationary pressure but it can be a destabilising factor if its row with Japan escalates. The same applies to Iran and the West.

LIM TECK SENG
Deputy managing director
JF Apex Securities Bhd

Do you believe in using feng shui to predict market movements?

Not at all.

What are your top picks in the Year of the Snake? Why?

I prefer good value penny stocks because the capital appreciation of these stocks are much faster and larger, compared to bigger-cap stocks. Stocks are all about packaging, style and branding.

What are some of your “predictions” for financial markets this year?

Financial markets revolve around banking, wealth management and the economy.

It has nothing much to do with stock markets. The stock market is all about liquidity and cashflow.

If there is enough liquidity, cashflow and interest in the stock, the stock will run. Liquidity is the most crucial component to the stock market.

EDMUND THAM
Head of Research
Mercury Securities

Do you believe in using feng shui to predict market movements?

Some people may use it, but I personally do not use feng shui to predict the market.

What are your top picks in the Year of the Snake? Why?

Currently I'm looking at property and crude palm oil (CPO) stocks, for both value and dividend yield.

The prices of quite a number of them have come down recently. However, they have the potential to “come back” later in the year. CPO stocks would probably only come back later in the year if and when CPO prices recover.

Property players with projects in prime areas locally (Penang island, Klang Valley, Iskandar Region) and overseas stand to perform well.

CPO picks - IOI Corp Bhd, TDM Bhd, TH Plantations Bhd, Hap Seng Plantations Holdings Bhd.
Property picks - Glomac Bhd, Mah Sing Group Bhd, SP Setia Bhd, UOA Development Bhd.

What are some of your “predictions” for financial markets this year?

For the local market, less volatility could lead to a higher KLCI level, especially in the first half of 2013.

The cautious investor sentiment due to GE13 is likely to suppress market participation for Q1 and maybe Q2.

The Dow Jones is at quite a lofty level, and we're not sure if it can be sustained above the 14,000 points level.

By YVONNE TAN yvonne@thestar.com.my 

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