Hang on to the roof over your head

Purchasing a property while the prices and mortgage rates are within reach becomes a secure way of protecting your finances against the battering of rising inflation - Both primary and secondary markets are worth considering

The ever changing economic condition and unpredictable spending behaviours make it even more challenging to find the real equilibrium in interest rate.

Bank Negara’s recent move to raise the benchmark overnight policy rate (OPR) from 3% to 3.25% was expected since the last OPR adjustment was three years ago in May 2011.

An OPR increase is always associated with an increase in interest rate.

Bank Negara has taken a bold step to address the economic challenge and became the first country in South-East Asia to increase the benchmark rate in an improved economic environment.

It is a prudent move by the authority in view of the upward pressure on inflation rate and the high household debt at 86.8% of gross domestic product in 2013.

So, how does this increase in interest rate affect us, the public?

Most people generally only relate an interest rate hike to financing cost which includes mortgage and personal loan rates.

In effect, it has a far more profound impact.

Changes in OPR directly affect the overall Base Lending Rate (BLR) which in turn, affects the spending behaviours of businesses and consumers as well as the dynamics of the overall economy.

On one hand, it is used to curb rising household debt and control spending.

On the other, higher interest rate would help to generate a neutral real rate of return for normal savings which is comparatively higher than fixed deposit rate.

However, what does this mean to us in the long run when interest rate is on the rising trend?

This is an interesting question in terms of personal spending and investment planning as it relates to interest rate movement.

Prof Dr Jeremy Siegel, of the Wharton School of Business and best selling author of Stocks for the Long Run, used to say when inflation kicked in, stock prices would go down in the short-term, due to concerns of reduced profits.

Eventually, however, stock prices would rise again in the medium and longer term, when investors realised that stocks could be used as a tool to hedge against inflation, as businesses would past higher costs through to their customers.

It is also interesting to see people sell and buy stocks for the same reason at different times with different considerations.

Similar movements may be observed in other types of investments when people take a longer term view of better ways to navigate through the challenges of inflation.

Prudent spending is always encouraged regardless of good and bad times.

With it, comes prudent planning and investment.

When inflation rate is on an upward trend and value of currencies continues to drop due to the massive quantitative easing (printing of money) measures around the world, using investments to hedge against inflation is one of the strategies to secure our financial future.

One of the investment assets that warrants deeper consideration and provides longer term investment protection is property.

Real estate works well as a hedging tool for a couple of reasons.

Investing early in real estate protects investors against rising land prices, and increasing construction costs during inflation.

Properties purchased before the onset of inflation will still have the protection of the continuous demand to meet the housing needs of a growing population in Malaysia.

An advice that I have continuously heard since my schools days till today is “Hang on to the roof over your head. It will help to keep you financially strong.”

This advice has remained valid over the years. It is not enough to just keep enough cash for rainy days.

Purchasing a property while the prices and mortgage rates are within reach becomes a secure way of protecting your finances against the battering of rising inflation.

This is especially true for those who have yet to own one.

Both primary and secondary markets are worth looking at, as there is surely be something out there that will meet your financial requirement.

“Hang on to the roof over your head” is a time-tested wisdom that will protect you in more ways than one for the future.

FIABCI Asia-Pacific regional secretariat chairman Datuk Alan Tong has over 50 years of experience in property development. He is also the group chairman of Bukit Kiara Properties. For feedback, please email feedback@fiabci-asiapacific.com.

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Migrant wives kept like slaves by Aussies

By GLENDA KWEK

 

Looking out for them: Case worker and former child bride Eman Sharobeem says victims are reluctant to pursue justice through legal means. - AFP

Unhappily married - In Australia, migrant wives in abusive marriages are all the more vulnerable as they are dependent on their husbands. 

KANYA thought she was starting a new life in Australia after arriving from India to marry her husband, but it quickly turned into a nightmare.

She was barred from going out on her own, forced to cook and clean for her partner’s family, and made to sleep outdoors if she did not complete her tasks.

The fate of the 18-year-old, whose name has been changed to protect her identity, mirrors that of others in “slave-like” relationships that Salvation Army worker Jenny Stanger has taken in at a Sydney refuge for trafficked people in recent years.

The women came to Australia under the promise of a happy marriage, only to be exploited by their partners.

“It’s an absolute deception on the part of the perpetrator,” said Stanger of a problem involving nearly a quarter of her safehouse’s residents. Immigration figures show women in such situations come from China, India, the Philippines and Vietnam among others.

“Marriage was the tool that was used to exploit the women for profit, gain or personal advantage.”

“In a typical case, the migrant wife would face extreme isolation, extreme denial of their basic rights around freedom of movement, possibly an exploitation of their labour ... and being denied money,” she said.

Getting a sense of how many marriage visas under Australia’s partner migration programme are used to bring women in for exploitation is difficult. Social workers say victims are often deliberately isolated and threatened if they seek help.

Researcher Samantha Lyneham, co-author of the first Australian study looking into the exploitation of women through migrant relationships beyond forced marriages, said the reluctance of victims to report crimes was a problem – such is their dependence on their abusers.

Lyneham said the fear of being deported, which stemmed from the “precarious immigration status” the women faced, was a key barrier, along with language and also mistrust of police after bad experiences in their home countries.

An inaugural Global Slavery Index published by the Walk Free Foundation in October said roughly 30 million people were living in modern-day slavery, of whom up to 3,300 were in Australia.

Lyneham’s new Australian Institute of Criminology report recorded the experiences of eight female victims – including Kanya – aged 18 to 49, mostly from South-East Asia, but also the Pacific, the Middle East and Eastern Europe.

They found that while some women moved to Australia on marriage visas in search of economic opportunities, others did so for love and to start a family.

All the women had consented to their marriages, having met their spouses through arranged situations, family links, online dating sites and chance encounters. Seven of the women said they married their husbands outside Australia.

Case workers said the husbands – half of whom were from the same countries of origin as the women – were most likely to be dual-citizens.

One woman told of how her husband would lock her out of the house at night. “I would have to stay in the tree overnight,” she said.

Others told of sexual violence and coerced pregnancies, according to the report. The women said their passports were taken and they were blocked from using telephones or having access to money.

Clandestine crime

Lyneham said although the interviews showed cases had been “happening for some time”, it was also clear when she raised the issue with authorities that some were not aware of it.

“It’s a clandestine type of crime that people mistake for domestic violence,” Lyneham said.

The use of domestic violence laws to address cases highlights the difficulties in identifying and prosecuting such crimes, which cut across legislation separately targeting human trafficking, slavery and domestic abuse.

Official Australian data between July 2001 and June 2011 showed 337,127 people were granted partner migration visas, with Britain, China and India the most common countries of origin.

Between July 2006 and Dec 2011, 3,654 people on the visas obtained protection under the Family Violence Provision.

This allows them to apply for permanent residency if they or a family member are subjected to violence. About 12% came from China, 10% from the Philippines and 8% from Vietnam. Others came from India, Britain, Thailand and Fiji.

Lyneham said while the numbers appeared low, previous research showed under-reporting, particularly in migrant communities.

Prime Minister Tony Abbott in June announced more than A$100mil (RM298mil) to fight domestic violence, and vowed a “particular focus” on women from culturally diverse and indigenous backgrounds.

Forced marriages were criminalised and laws against forced labour were strengthened in 2013.

Case worker Eman Sharobeem, a former child bride who was abused during her marriage, said some women who approached her for help were not comfortable pursuing their husbands through the legal system.

While she worked with politicians to help formulate the 2013 laws, what “we are really interested in is educating the community more than just having a law to guide them”.

Her views are echoed by Salvation Army worker Stanger, who praised the legislation but added: “They (victims) are looking for a way out, so ... the more doors we can open, the more likely someone is going to step through that door.” – AFP

Unhappily Married



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A love story like a fairy tale

Happy together: Li gazing lovingly at Gan as she admires Li's gift to her for Valentine's Day. LI Kangyu has not left his house ...

A love story like a fairy tale

Happy together: Li gazing lovingly at Gan as she admires Li's gift to her for Valentine's Day.

A Chinese man meets a Malaysian woman online, and romance begins to bloom in a special way.

LI Kangyu has not left his house for 30 years. Diagnosed with rheumatoid arthritis, he has been paralysed and bedridden since he was seven.

But his life took an unexpected turn for the better when he met a Malaysian woman Gan Suh Eng by chance on QQ, an online instant messaging platform, three years ago.

Despite being physically miles apart, they were drawn to each other.

“She has opened the windows of my soul,” Li, 39, said.

A year ago today, they exchanged wedding vows and began their life together at Li’s hometown, a village in Tangshan, Hebei province.

Li described their love story, which has attracted widespread media attention, as a fairy tale.

To him, Gan is an angel sent from heaven.

Her presence in his life has opened many doors for him.

Lying on a customised wheelchair given by a Good Samaritan, he can now enjoy the sunshine outside his house with Gan by his side.

Together they have travelled to Shanghai and Suzhou, among other cities, where Li has been invited to give motivational talks.

“A Shanghainese enterprise has shown interest in training me to become a motivational speaker.

“A book on my life story, to be penned by a writer, is also in the pipeline,” he said during The Star’s visit to his house, about 45 minutes by car from the city centre of Tangshan.

It is obvious that the love between the inseparable couple is going strong.

For the Chinese Valentine’s Day, qixi, which was celebrated last Saturday, Li presented Gan with a novelty ring that had a hidden clock face, while she surprised him with a blue striped tie.

Wearing a pink top that he had bought on online shopping site Taobao specially for the occasion, Li was delighted when told that the patterns printed on the shirt were that of Malaysia’s national flower, the hibiscus.

“It was a happy coincidence,” he said.

As Li recounted their first year together as husband and wife, Gan sat next to him, stroking his head affectionately.

They were more than happy to oblige when Gan was asked to give a peck on Li’s cheek.

“In the blink of an eye, a year has passed. We are both tolerant of and accommodating to each other’s shortcomings. Our love has grown deeper,” Li said.

Gan, 36, who hails from Selayang, was smitten by Li’s romantic and caring nature.

“Sometimes he will insist on helping me blow-dry my hair,” the former employee of a Malaysian Christian NGO said.

The couple leads a simple life in the village, surviving mostly on Li’s financial assistance from the government.

Although it is a meagre sum, Gan said the cost of living in the village is low, so they are doing fine.

Family members on both sides, who originally objected to their marriage, have now accepted them.

“My mum now cares about Li more than she cares about me,” Gan protested in jest. “She will ask to speak to him every time we talk on the phone, reminding him to take good care of himself and rest more.”

A local reporter who has been following their story since last year noted that Li appeared rosier and more cheerful.

“I am about 5kg heavier now and I have gained more muscle on my thigh,” Li said.

Their bright and neat space, a room in the house of Li’s third sister, is furnished with a double bed and sofa. Adorning the walls are their wedding photos.

A small wooden table sits on the bed for Li to use his laptop. As he cannot move his joints, he operates the laptop with a mouse placed near his right hip.

Looking ahead, Li dreams of having their own house and raising a child.

“We also want to start a charitable foundation to help the less fortunate. It looks like a far-fetched goal but I believe it will come to fruition one day,” he said.

Check In China by Tho Sin Yi The Star Columnists/Asia News Network

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