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Sunday 19 August 2012

Lee Kuan Yew On Getting the Best out of Life

“The human being needs a challenge, and my advice to every person in Singapore and elsewhere: Keep yourself interested, have a challenge. If you’re not interested in the world and the world is not interested in you, the biggest punishment a man can receive is total isolation in a dungeon, black and complete withdrawal of all stimuli, that’s real torture.”


MY CONCERN today is, what is it I can tell you which can add to your knowledge about ageing and what ageing societies can do. You know more about this subject than I do. A lot of it is out in the media, Internet and books. So I thought the best way would be to take a personal standpoint and tell you how I approach this question of ageing.

If I cast my mind back, I can see turning points in my physical and mental health. You know, when you’re young, I didn’t bother, assumed good health was God-given and would always be there.

When I was about 57 that was – I was about 34, we were competing in elections, and I was really fond of drinking beer and smoking. And after the election campaign, in Victoria Memorial Hall – we had won the election, the City Council election – I couldn’t thank the voters because I had lost my voice. I’d been smoking furiously. I’d take a packet of 10 to deceive myself, but I’d run through the packet just sitting on the stage, watching the crowd, getting the feeling, the mood before I speak.

In other words, there were three speeches a night. Three speeches a night, 30 cigarettes, a lot of beer after that, and the voice was gone. I remember I had a case in Kuching, Sarawak . So I took the flight and Ifelt awful. I had to make up my mind whether I was going to be an effective campaigner and a lawyer, in which case I cannot destroy my voice, and I can’t go on. So I stopped smoking. It was a tremendous deprivation because I was addicted to it. And I used to wake up dreaming…the nightmare was I resumed smoking.

But I made a choice and said, if I continue this, I will not be able to do my job. I didn’t know anything about cancer of the throat, or oesophagus or the lungs, etc. But it turned out it had many other deleterious effects. Strangely enough after that, I became very allergic, hyper-allergic to smoking, so much so that I would plead with my Cabinet ministers not to smoke in the Cabinet room. You want to smoke, please go out, because I am allergic.

Then one day I was at the home of my colleague, Mr Rajaratnam, meeting foreign correspondents including some from the London Times and they took a picture of me and I had a big belly like that (puts his hands in front of his belly), a beer belly. I felt no, no, this will not do. So I started playing more golf, hit hundreds of balls on the practice tee. But this didn’t go down. There was only one way it could go down: consume less, burn up more.

Another turning point came when -this was 1976, after the general election – I was feeling tired. I was breathing deeply at the Istana, on the lawns.

My daughter, who at that time just graduating as a doctor, said: ‘What are you trying to do?’ I said: ‘I feel an effort to breathe in more oxygen.’ She said: ‘Don’t play golf. Run. Aerobics..’ So she gave me a book , quite a famous book and, then, very current in America on how you score aerobic points swimming, running, whatever it is, cycling.

I looked at it sceptically. I wasn’t very keen on running. I was keen on golf. So I said, ‘Let’s try’. So in-between golf shots while playing on my own, sometimes nine holes at the Istana, I would try and walk fast between shots. Then I began to run between shots. And I felt better. After a while, I said: ‘Okay, after my golf, I run.’ And after a few years, I said: ‘Golf takes so long. The running takes 15 minutes. Let’s cut out the golf and let’s run.’

I think the most important thing in ageing is you got to understand yourself. And the knowledge now is all there. When I was growing up, the knowledge wasn’t there. I had to get the knowledge from friends, from doctors.

But perhaps the most important bit of knowledge that the doctor gave me was one day, when I said: ‘Look, I’m feeling slower and sluggish.’ So he gave me a medical encyclopaedia and he turned the pages to ageing. I read it up and it was illuminating. A lot of it was difficult jargon but I just skimmed through to get the gist of it.

As you grow, you reach 20, 21, 22, 23, 24, 25 and then, thereafter, you are on a gradual slope down physically. Mentally, you carry on and on and on until I don’t know what age, but mathematicians will tell you that they know their best output is when they’re in their 20s and 30s when your mental energy is powerful and you haven’t lost many neurons. That’s what they tell me.

So, as you acquire more knowledge, you then craft a programme for yourself to maximise what you have. It’s just common sense. I never planned to live till 85 or 84.! I just didn’t think about it. I said: ‘Well, my mother died when she was 74, she had a stroke.. My father died when he was 94.’

But I saw him, and he lived a long life, well, maybe it was his DNA. But more than that, he swam every day and he kept himself busy.. He was working for the Shell company. He was in charge, he was a superintendent of an oil depot.

When he retired, he started becoming a salesman. So people used to tell me: ‘Your father is selling watches at BP de Silva.’ My father was then living with me. But it kept him busy. He had that routine: He meets people, he sells watches, he buys and sells all kinds of semi-precious stones, he circulates coins. And he keeps going. But at 87, 88, he fell, going down the steps from his room to the dining room, broke his arm, three months incapacitated.

Thereafter, he couldn’t go back to swimming. Then he became wheelchair-bound. Then it became a problem because my house was constructed that way. So my brother – who’s a doctor and had a flat (one-level) house – took him in. And he lived on till 94. But towards the end, he had gradual loss of mental powers.

So my calculations, I’m somewhere between 74 and 94. And I’ve reached the halfway point now. But have I? Well, 1996 when I was 73, I was cycling and I felt tightening on the neck. Oh, I must retire today. So I stopped. Next day, I returned to the bicycle. After five minutes it became worse. So I said, no, no, this is something serious, it’s got to do with the blood vessels. Rung up my doctor, who said, ‘Come tomorrow’. Went tomorrow, he checked me, and said: ‘Come back tomorrow for an angiogram.’

I said: ‘What’s that ?’ He said: ‘We’ll pump something in and we’ll see whether the coronary arteries are cleared or blocked.’ I was going to go home. But an MP who was a cardiologist happened to be around, so he came in and said: ‘What are you doing here?’ I said: ‘I’ve got this.’ He said: ‘Don’t go home. You stay here tonight. I’ve sent patients home and they never came back. Just stay here. They’ll put you on the monitor. They’ll watch your heart. And if anything, an emergency arises, they will take you straight to the theatre. You go home. You’ve got no such monitor. You may never come back.’

So I stayed there. Pumped in the dye, yes it was blocked, the left circumflex, not the critical, lead one. So that’s lucky for me. Two weeks later, I was walking around, I felt it’s coming back. Yes it has come back, it had occluded. So this time they said: ‘We’ll put in a stent.’

I’m one of the first few in Singapore to have the stent, so it was a brand new operation. Fortunately, the man who invented the stent was out here selling his stent. He was from San Jose, La Jolla something or the other. So my doctor got hold of him and he supervised the operation. He said put the stent in. My doctor did the operation, he just watched it all and then that’s that. That was before all this problem about lining the stent to make sure that it doesn’t occlude and create a disturbance.

So at each stage, I learnt something more about myself and I stored that. I said: ‘Oh, this is now a danger point.’ So all right, cut out fats, change diet, went to see a specialist in Boston , Massachusetts General Hospital . He said: ‘Take statins.’ I said: ‘What’s that?’ He said: ‘(They) help to reduce your cholesterol.’ My doctors were concerned. They said: ‘You don’t need it. Your cholesterol levels are okay.’ Two years later, more medical evidence came out. So the doctors said: ‘Take statins.’

Had there been no angioplasty, had I not known that something was up and I cycled on, I might have gone at 74 like my mother. So I missed that decline. So next deadline: my father’s fall at 87.

I’m very careful now because sometimes when I turn around too fast, I feel as if I’m going to get off balance. So my daughter, a neurologist, she took me to the NNI, there’s this nerve conduction test, put electrodes here and there.

The transmission of the messages between the feet and the brain has slowed down. So all the exercise, everything, effort put in, I’m fit, I swim, I cycle. But I can’t prevent this losing of conductivity of the nerves and this transmission. So just go slow.

So when I climb up the steps, I have no problem. When I go down the steps, I need to be sure that I’ve got something I can hang on to, just in case. So it’s a constant process of adjustment. But I think the most important single lesson I learnt in life was that if you isolate yourself, you’re done for. The human being is a social animal – he needs stimuli, he needs to meet people, to catch up with the world.

I don’t much like travel but I travel very frequently despite the jetlag, because I get to meet people of great interest to me, who will help me in my work as chairman of our GIC. So I know, I’m on several boards of banks, international advisory boards of banks, of oil companies and so on. And I meet them and I get to understand what’s happening in the world, what has changed since I was here one month ago, one year ago. I go to India , I go to China .

And that stimuli brings me to the world of today. I’m not living in the world, when I was active, more active 20, 30 years ago. So I tell my wife. She woke up late today. I said: ‘Never mind, you come along by 12 o’clock. I go first.’

If you sit back – because part of the ending part of the encyclopaedia which I read was very depressing – as you get old, you withdraw from everything and then all you will have is your bedroom and the photographs and the furniture that you know, and that’s your world. So if you’ve got to go to hospital, the doctor advises you to bring some photographs so that you’ll know you’re not lost in a different world, that this is like your bedroom.

I’m determined that I will not, as long as I can, to be reduced, to have my horizons closed on me like that. It is the stimuli, it is the constant interaction with people across the world that keeps me aware and alive to what’s going on and what we can do to adjust to this different world.

In other words, you must have an interest in life. If you believe that at 55, you’re retiring, you’re going to read books, play golf and drink wine, then I think you’re done for. So statistically they will show you that all the people who retire and lead sedentary lives, the pensioners die off very quickly.

So we now have a social problem with medical sciences, new procedures, new drugs, many more people are going to live long lives.. If the mindset is that when I reach retirement age 62, I’m old, I can’t work anymore, I don’t have to work, I just sit back, now is the time I’ll enjoy life, I think you’re making the biggest mistake of your life. After one month, or after two months, even if you go travelling with nothing to do, with no purpose in life, you will just degrade, you’ll go to seed.

The human being needs a challenge, and my advice to every person in Singapore and elsewhere: Keep yourself interested, have a challenge. If you’re not interested in the world and the world is not interested in you, the biggest punishment a man can receive is total isolation in a dungeon, black and complete withdrawal of all stimuli, that’s real torture.

So when I read that people believe, Singaporeans say: ‘Oh, 62 I’m retiring.’ I say to them: ‘You really want to die quickly?’ If you want to see sunrise tomorrow or sunset, you must have a reason, you must have the stimuli to keep going..’

Have a purpose driven life and finish well, my friends.

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60% of Malaysian accountants from Ktar?


KUALA LUMPUR: Kolej Tunku Abdul Rahman (Ktar) has produced 60% of accountants from Malaysia, said MCA president Datuk Seri Dr Chua Soi Lek.
The college, he added, was also a recipient of the Platinum Status Award by the ACCA (Association of Chartered Certified Accountants).

One of the criteria to qualify for the prestigious award is that students must consistently achieve pass rates that exceed the rest of the world in the ACCA examination.

While Ktar would be elevated to a unversity college next year, Dr Chua gave his assurance that its School of Business Studies would continue to flourish.

Nevertheless, he said there would be some changes like consolidating its 130 programmes, continuing only selected diploma programmes and introducing university programmes.

Dr Chua said deputy president Datuk Seri Liow Tiong Lai has been given a month to come up with recommendations on the changes.

The changes would also make sure that Ktar and Universiti Tunku Abdul Rahman (Utar) would complement each other and develop together, instead of competing against each other, he said in an interview at his office here.

Dr Chua noted that the two institutions were set up and run by MCA to provide quality and affordable education to Malaysians and contribute to the country's development.

Both had produced some 200,000 graduates who found jobs within six months upon graduation, he added.

Dr Chua said the college was proposed by then MCA president Tun Tan Siew Sin at the party's annual general assembly in July 1968.

Ktar, which took in its first batch of 320 students in February 1969, now has a total enrolment of 25,000 at its main campus here and branch campuses in Penang, Perak, Johor, Pahang and Sabah.

It had undergone rapid expansion at its main campus and set up branch campuses under then MCA president Tun Dr Ling Liong Sik in the 1990s, he added.

Dr Chua said the Government's ringgit-to-ringgit annual allocation for Ktar's development and administration costs since 1972 would continue, adding that RM56mil had been allocated for the purpose next year.

The allocation was needed to keep its fees affordable, he said, adding that the fees were between RM9,000 and RM10,000.

Fees at other established private colleges ranged from RM20,000 to RM40,000.

Plans were afoot to expand the main campus here to include a faculty building, students' centre and hall and vocational training building.

He said the development on Ktar's 21ha plot could proceed after the relocation of about 500 squatter families.

Dr Chua said Ktar principal Dr Tan Chik Heok has been given six months, beginning last month, to resolve the squatter issue.

Dr Tan heads a committee of academic staff which is working with Kuala Lumpur City Hall on the relocation, he added.

By FOONG PEK YEE pekyee@thestar.com.my

Japanese right-wingers seek political gains landed on Diaoyu Islands; China strongly protests


Japanese right-wingers seek political gains by exploiting Diaoyu Islands issue

A pack of Japanese right-wingers landed on the Chinese-owned Diaoyu Islands in the East China Sea on Sunday, in a blatant move that they claimed to "mourn the war dead", but in fact it was a scheme to net political leverage.

More than 150 Japanese right-wing activists participated in the event, including eight members of parliament. After gathering in the surrounding waters in 21 ships, 10 people landed on the island and stayed for over two hours.

Their gross violation of China's sovereignty has raised an uproar in China, with demonstrations flaring up in numerous cities in the country.

"China strongly opposes Japanese rightists landing on the Diaoyu Islands on Sunday, and urges Japan to put an end to its actions that seek to undermine China's territorial sovereignty," the Chinese Foreign Ministry said Sunday in a statement.

A quick background-check of the right-wing politicians and organizations that sponsored this provocative bid shows that their target of much-sought prize may not be the islands themselves, but rather political leverage that could put them back in the driver's seat back at home.

Tokyo governor Shintaro Ishihara, who prompted the Japanese government to "nationalize" the Diaoyu Islands with his "island-buying" farce, was notorious for denying the 1937 Nanjing massacre, during which the Japanese aggressor troops killed more than 300,000 Chinese citizens in World War II

Yoshitaka Shindo, another right-wing politician and a member of Japan's House of Representatives, is the grandson of Tadamichi Kuribayashi, a general of the Imperial Japanese Army during the Second World War who was killed in Iwo Jima.

Behind the drape of "mourning the war dead," what these right-wingers are really pursuing is personal political gains, even if it meant exploiting the public's sympathy toward the deceased.

Japanese scholars believe that as the Japanese society is bedeviled by sustained economic downturn and lack of confidence, publications advertizing "the Japan crisis theory" and the "China threat theory" could bring comfort to the public.

Moreover, widespread sorrowful sentiment among the public that Japan has been economically overtaken by China also feeds the right-wingers who advocate getting tough with China.

The narrow-visioned nationalism would only bring destruction to a country, warned Makoto Iokibe, former president of the National Defense Academy of Japan in an article published by the Asahi Shimbun on Sunday.

"Every country is easily emotionalized when it comes to issues of territory. The rightward tendency in Japan has been enhanced recently," he said.

Against this backdrop, if the voices and moves of the right-wingers were unchecked or event expanded, hostility across the East China Sea would increase, further dampening the perspective of closer bilateral ties between Asia's two largest economies and regional stability.

Therefore, "the Japanese government and people should speak in more rational voices and avoid being hijacked by the right-wingers and heading to the extreme," Iokibe said.- Xinhua


Update:
Aug. 24 (Xinhua) -- China on Friday expressed strong displeasure at the Japanese leader's remark on Diaoyu Islands, with Foreign Ministry spokesman Hong Lei saying that it "sabotages China's territorial sovereignty."

On the same day, Japanese Prime Minister Yoshihiko Noda told the press that Japan claimed Diaoyu Islands were part of its territory. The Meiji government integrated them into Japan in 1895 without the signs of rule by the Qing Dynasty of China at that time.

Hong stressed that the Diaoyu Islands and surrounding islets "have been the inherent territory of China since ancient times" because they "were first found, named and used by the Chinese."

The earliest historical record of Diaoyu Islands can be dated back to China's Ming Dynasty (1368-1644) in a book titled "Departure Along the Wind" (published in 1403), in which the names of "Diaoyu Islet" and "Chiwei Islet" were used. The names refer to the nowadays Diaoyu Islands and Chiwei Islet, Hong said.

He went on to say that Hu Zongxian, the Zhejiang governor of Ming Dynasty, marked Diaoyu Islands and surrounding islets in China's maritime defense.

"It demonstrated that these islands were at least within China's maritime defense sphere since the Ming Dynasty," Hong said.

Japan claimed its sovereign requirement during the China-Japanese War in 1895 and seized the islands with illegal means. "The saying that Diaoyu Islands were inherent territory of Japan is totally groundless," Hong said.

The Cairo Deceleration issued after the World War II regulated that all territory illegally taken by Japan, including China's northeast, Taiwan and Penghu islets, must be returned to China, according to the spokesman.

In August 1945, Japan announced its unconditional surrender under the terms of Potsdam Proclamation. "It means Japan must return Taiwan, the Diaoyu Islands and surrounding islets to China," he said.

On Sept. 18, 1951, then Chinese Premier and Foreign Minister Zhou Enlai made a solemn statement on behalf of the Chinese government that the Treaty of Peace with Japan signed in San Francisco of the United States was illegal and invalid, and it absolutely would not be recognized without the preparation and signing of the People's Republic of China.

In June 1971, Japan and the United States signed a pact to hand over Okinawa to Japan. Diaoyu Islands were mapped in the handover area.

"It is a private trading of the Chinese territory," Hong said.

China's Foreign Ministry announced on Dec. 30 of 1971 that such a move was "totally illegal" and reiterated that Diaoyu Islands and surrounding islets were "an integral part of the Chinese territory", he said.

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China urges Japan to take practical action to improve ties

BEIJING, Aug. 24 (Xinhua) -- China on Friday urged Japan to take practical action to improve bilateral relations amid a territorial dispute regarding nearby islands.

A resolution adopted by the Japanese House of Representatives said that as important partners with shared interests, relations between Japan and China should be deepened so as to promote regional and international peace, stability and prosperity.  Full story

China urges Japan to stop territorial sovereignty violations

BEIJING, Aug. 17 (Xinhua) -- China on Friday urged Japan to refrain from any action that might violate China's territorial sovereignty and use dialogues and negotation to solve an ongoing dispute over the Diaoyu Islands.

"The Japanese side should maintain Sino-Japanese relations through concrete action," said Foreign Ministry spokesman Qin Gang, when talking about the recent illegal detainment and release of 14 Chinese nationals by Japan.  Full story


 • The Japanese coast guard confirmed that at least nine Japanese activists landed on Diaoyu Islands.
    • They arrived at the waters near the Diaoyu Islands with a group of 150 Japanese activists.
 • The group plans to hold a ceremony for people died in the war in 1945.

TOKYO, Aug. 19 (Xinhua) -- The Japanese Maritime Safety Agency confirmed that 10 Japanese activists landed on the Diaoyu Islands Sunday, local media reported.


VIDEO: CHINA PROTESTS JAPANESE VISIT TO DIAOYU ISLAND CCTV News - CNTV English

The Japanese coast guard's patrol vessels found 10 people swam to the Diaoyu Islands from their fleet at around 7:30 Sunday, and called them to leave as soon as possible after their landing.

The 10 people, no parliamentarians, remained at the island for about two hours and unfurled several Japanese flags. All of them left the island and swam back to their boats before 10:00.

A fleet of around 150 Japanese activists and 21 vessels departed from the Ishigaki city Saturday and arrived at the waters near the Diaoyu Islands early Sunday morning. The Japanese government had rejected their landing application earlier this month.

The group also plans to hold a ceremony for people who died in World War II and investigate fishery conditions in the waters near the Diaoyu Islands to declare the islands are Japanese territory.


China on Saturday lodged solemn representations with Japan as the group comprising some Japanese lawmakers and members of right- wing groups plan to go to the Diaoyu Islands waters to hold activities. Foreign Ministry Spokesman Qin Gang said that China has urged the Japanese side to immediately stop the action that seeks to undermine China's territorial sovereignty.

Thousands of people in a number of Chinese cities, including Guangzhou, Shenzhen, Shenyang, Hangzhou, Harbin and Qingdao, took to the street on Sunday morning to voice their opposition to the Japanese activists' landing on the Diaoyu Islands.

The act of the Japanese activists came after 14 Chinese activists arrived at the Diaoyu Islands by a Hong Kong fishing vessel to assert China's territorial claim to the islands last Wednesday. They were illegally arrested shortly after and were released last Friday.



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China lodges solemn representations with Japan on Diaoyu Islands
BEIJING, August 18 (Xinhua) -- China on Saturday lodged solemn representations with Japan as some Japanese lawmakers and members of right-wing groups plan to go to the Diaoyu Islands waters to hold activities. Full story

China urges Japan to stop territorial sovereignty violations


BEIJING, Aug. 17 (Xinhua) -- China on Friday urged Japan to refrain from any action that might violate China's territorial sovereignty and use dialogues and negotation to solve an ongoing dispute over the Diaoyu Islands.

"The Japanese side should maintain Sino-Japanese relations through concrete action," said Foreign Ministry spokesman Qin Gang, when talking about the recent illegal detainment and release of 14 Chinese nationals by Japan.  Full story
China holds "firm stance" over Diaoyu Islands
 

BEIJING, Aug. 17 (Xinhua) -- China holds a "firm stance" over the Diaoyu Islands, and any of Japan's unilateral moves against Chinese nationals is illegal and invalid, the Foreign Ministry said Friday.

As Japan decided to release 14 Chinese nationals it was detaining, Chinese Foreign Ministry spokesman Qin Gang said: "China holds a clear and firm stance on the issue of Diaoyu Islands." Full story


China strongly protests against Japanese rightists' landing on Diaoyu Islands

People in a number of Chinese cities, including Guangzhou, Shenzhen, Shenyang, Hangzhou and Harbin, took to the street Sunday morning to voice their opposition to Japanese right wing activists' landing on the Diaoyu Islands. [Sina Weibo] 

People in a number of Chinese cities, including Guangzhou, Shenzhen, Shenyang, Hangzhou, Harbin and Qingdao, took to the street Sunday morning to voice their opposition to Japanese ring wing activists' landing on China's Diaoyu Islands.

Around 8:50 a.m., over 100 protestors gathered near the Consulate-General of Japan in Guangzhou, Guangdong Province, holding Chinese national flags and banners reading, "Defend China's territory over the Diaoyu Islands."
They also shouted, "Japan, get out of the Diaoyu Islands!"
From 9:40 a.m., protestors marched on major roads in Guangzhou, as police maintained order.
The protestors returned to the Consulate-General of Japan in Guangzhou around 10:30 a.m., and some Guangzhou residents staged a sit-in at the gate of the compound.
In downtown Shenzhen, Guangdong Province, protestors gathered at SEG Plaza around 9:00 a.m., holding Chinese national flags and shouting about defending China's territory.
From 10:30 a.m., protestors marched on major roads in the city's downtown area.
As of 11:00 a.m., about 1,000 protestors had assembled in Shenzhen.
In Harbin, capital of northeast China's Heilongjiang Province, hundreds of residents gathered at Dragon Tower Square, a city landmark.
The protestors organized online, and some local residents arrived at the scene to support the protestors by offering them Chinese national flags and drinking water, according to the protestors.
The protestors were led along the city's major roads by two cars flying Chinese national flags. Police maintained order and directed traffic, as the group gained more protestors throughout the march.
In the capital of northeast China's Liaoning Province, about 100 protestors gathered at a square near the Shenyang municipal government building and marched to the Consulate-General of Japan in Shenyang.
Some of the protestors wore red dresses bearing the Chinese characters for "China" and held loudspeakers. Police were on hand to maintain order.
The Japan Coast Guard confirmed that nine Japanese activists landed on the Diaoyu Islands early Sunday morning, Japanese media reported.
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More millionaires nowadays; secret to success and riches


PETALING JAYA: There may be more millionaires in Malaysia now than before but they may not necessarily be feeling rich.

Besides the rising number of successful business owners, many high-salaried people are already millionaires based on the value of their assets and properties.

RAM Holdings Bhd group chief economist Dr Yeah Kim Leng said the term could also apply to those in the middle-class who could have earned the amount but had spent it on necessities such as on costly children's education and high property prices.

He said although a millionaire was measured by his or her disposable income, those who have made their million would not have the same purchasing power compared to a decade ago, citing inflation as the main reason.

Dr Yeah said many in business had made their millions as a result of savvy investments and the growth of the industries that they were involved in, adding that overall, the rising affluence was due to sustained economic growth.

“We have seen a strong growth in certain sectors, including plantation, oil and gas and property, which have elevated entrepreneurs into the millionaire class,” he said.

Billionaires, however, remain rare. Malaysia now has 30 billionaires, just three more from the 27 on the list last year.

The Wall Street Journal (WSJ) reported last year that Malaysia's millionaires almost doubled over the previous 18 months.

Citing a report by international financial firm Credit Suisse Group, it said Malaysia added 19,000 new millionaires since early 2010, bringing the total to 39,000 as of October.

The WSJ report attributed the rise to the weakening US dollar and careful spending.

Dr Yeah said those who invested their money wisely had benefited the most.

“In a free market and capitalist economy like Malaysia, people who have capital can generate millions,” he said, noting that many in the upper-income bracket had accumulated wealth past the million-ringgit mark.

Personal financial consultant Carol Yip said the rising cost of living had lessened the feeling of being rich.
“Today, even a small apartment can cost half a million,” she said.

She said careful spending was not a factor for the increase in the numbers of millionaires.

“If we are spending less, we won't be seeing so many luxury cars on the road,” she said.

She said the rise in millionaires was also due to property prices which have shot up exponentially, adding that the definition should not include the value of the house that one was living in.

“If you still have a million in hand after you convert the value of your other properties, investments and have paid of all your debts, then you are a millionaire,” she added.

Financial adviser Fred Wong said making a million was not a problem these days as long as people were willing to work hard but being self-employed and investing wisely was the better route to riches.

By ISABELLE LAI and P. ARUNA newsdesk@thestar.com.my

Millionaires’ secret to success

PETALING JAYA: Ganesh Kumar Bangah made his first million at the age of 23.

The secret, he said, was as simple as knowing what people needed and delivering it to them.

“I knew what I was good at, which was IT. I used that to come up with something of value to the world.

“I also worked hard and persevered until I reached the goals I had set for myself,” said Ganesh, now 33 and the CEO of MOL Global Bhd, a company worth over RM1bil.

<b>Young and rich:</b> Ganesh (left) and Yap made their first million at the age of 23 and 26 respectively. Young and rich: Ganesh (left) and Yap made their first million at the age of 23 and 26 respectively.

He said that even when he was only 15, he had been using his skills to make money, like repairing his teachers' computers for a fee.

At the age of 20, he started his own company, which made him a millionaire in three years.

“Be focused and set new goals for yourself to keep climbing higher. Real wealth is the satisfaction you get when you overcome a new challenge that brings rewards. Financial wealth should just be a by-product.”

Feng shui master and multi-millionaire Joey Yap said learning to make good use of time was a key ingredient to achieving financial success.

“In business, time is money, so make sure you use your time to acquire things of good value. Find out what your strengths are, work on your weaknesses and hone your talents,” said Yap, 35, who made his first million at age 26 by selling his first feng shui home study course.

However, having RM1mil does not necessarily make people feel rich, especially for those raising children in the city.

Carol Leong, 57, a mother of three, said it costs more than the amount for an average family to live in the city and raise a child to adulthood.

“There are medical bills, tuition fees, various expenses and their education to pay for. For our family, it has definitely come up to more than RM1mil per child,” she said.

Leong, a lawyer, said she and her businessman husband had placed their money in various investments, which in the long run had helped pay for tertiary education overseas for their three children.

“I would advise young parents living in the city and who are just starting a family to invest to secure some income for the future,” she added.

By YVONNE LIM yvonnelim@thestar.com.my

Saturday 18 August 2012

Financial Times hails Malaysia’s economic boom


KUALA LUMPUR: It is not always that emerging economies get favourable remarks from hard-boiled foreign media practitioners but Malaysia is getting more laudatory remarks from foreign journalists these days.

Take Jeremy Grant's article on Kuala Lumpur's soon-to-be-developed new financial centre, the Tun Razak Exchange, and the state of the Malaysian economy in the Financial Times Friday, for example.

He wrote: “With much of the world economy experiencing anaemic growth at best, it is hard to believe that any country would contemplate a project on this scale.

“Yet Malaysia's economy is enjoying a gravity-defying boom that is confounding sceptics. Second-quarter gross domestic product figures out this week showed the economy grew by 5.4%, way above consensus expectations of 4.6%, and the 4.9% recorded - after an upward revision - for the previous quarter.”

Grant attributed this development to big-ticket government spending, lending to business by well-capitalised banks, and robust consumer demand, fuelled by pay rises for civil servants and cash handouts that have even seen taxi drivers receive vouchers for free replacement tyres.

“Malaysia's stock market has been among the best performers in the world, buoyed by big flotations including Felda, a state-controlled palm oil producer, which was the second-largest initial public offering after Facebook when it raised over USD2bil last month. Bankers are cashing in with a parade of further IPOs expected within months,” he added.

“Much of the impetus behind the growth comes from the “economic transformation programme” initiated by Prime Minister Datuk Seri Najib Tun Razak when he came to power in 2009.

This involves dozens of government-backed projects designed to boost per capita income to USD15,500 by 2020, from USD9,600 last year and lift Malaysia out of its “middle-income trap”, Grant wrote.

Over spending: Analysts say one nagging concern for Malaysia is the rising household debt caused by the rapid growth in credit card usage. Over spending: Analysts say one nagging concern for Malaysia is the rising household debt caused by the rapid growth in credit card usage.

The Financial Times also quoted Christian de Guzman, an analyst at Moody's, a rating agency, who admitted he was sceptical about the programme's ability to spur private sector development when it was launched. De Guzman is more convinced now, adding that “The proof of the pudding is in the eating but so far they are on track. In aggregate there are just so many things going on [in the economy].”

Grant wrote that “Not only has Malaysia experienced strong domestic demand offsetting its vulnerability to weakening demand for its exports - much of them electronics destined for Europe; it has also benefited from deeper ties with economies in Asia.

Moody's says that in 2006 the United States was Malaysia's largest trading partner, absorbing 18.8 per cent of its exports, while Asia Pacific accounted for 60 per cent. By last year the US share had dwindled to 8.3 per cent while Asia Pacific jumped to 69 per cent.

Malaysia's healthy economy - and the resulting “feel good” factor - stands in contrast to growing anxiety among Malaysia's neighbours in south-east Asia as the global downturn has tarnished their economies.

Analysts point out one nagging concern for Malaysia: rising household debt, caused by rapid growth in credit card usage.

As the transformation programme's projects take root, Grant wrote that Bank Negara Malaysia is forecasting full-year growth at the upper end of its 4-5 per cent.

Amidst this scenario, the Financial Times also quoted Rahul Bajoria, an anaylst at Barclays, as saying that: “We expect momentum to remain underpinned as the project-based nature of these investments means that it is unlikely to be halted abruptly.” - Bernama

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Malaysia's Days in the Sun - WSJ
Malaysia's growth forecasts raised after the actual 5.4% in Q2, 2012

House price hike likely

Penang properties said to increase 5%-10% due to more costly cement

GEORGE TOWN: The selling price of properties in Penang will soon surge by 5%-10% following the recent move by Lafarge Malayan Cement to raise cement prices by about 6%, according to housing developers here.

Following Lafarge's announcement, a 50kg bag of cement is now priced at RM17.50, compared to RM16.50 before the hike.

Penang Master Builders & Building Materials Dealers Association president Lim Kai Seng said 60% to 80% of the materials used for a building comprised cement and cement-related materials.

Lim: ‘The price of sand is now RM40- RM43 per cu yard.’“This is why an increase in cement price will have a significant impact on property prices.

Lim: ‘The price of sand is now RM40- RM43 per cu yard.’

“The other cement manufacturers in the country have sent signals that they will raise prices very soon,” Lim said.

There are six cement producers in Malaysia, namely YTL Cement Bhd, Tasek Corp Bhd, Cement Industries of Malaysia Bhd, Lafarge, CMS Cement Sdn Bhd, and Holcim (M) Sdn Bhd.

Only Sarawak-based CMS Cement has confirmed it would keep prices at the current level.

Lim said the price of other essential building materials such as sand and aggregate had also increased.

“The price of sand is now between RM40 and RM43 per cu yard, depending on the grade, compared to RM38-RM40 earlier this year.

“The price of aggregates is now at RM21 per tonne, compared to RM20 per tonne earlier this year,” he said.

House prices on the island are expected to rise by 10%, while in Seberang Prai, housing prices are expected rise by 5%, following the hike in cement price.

Kuala Lumpur-based developers such as Mah Sing Group Bhd and SP Setia Bhd with projects in Penang will continue to absorb the cost of the cement price increase.

Ideal Property Development Sdn Bhd managing director Datuk Alex Ooi said the company was now revising the selling prices of its new projects upwards, due to the hike in cement price.

Ooi: ‘There will be a 10% hike in the selling price of properties in Penang.’Ooi: ‘There will be a 10% hike in the selling price of properties in Penang.’

“There will be at least a 10% hike in the selling price of properties on the island.

“A hike in cement price means the price of all cement-related products such as concrete and bricks will rise. Construction cost will go up by between 15% and 20%.

“We expect the rest of the cement manufacturers in the country to adjust the price of cement upwards in the next one to two months,” he said.

In addition to the rise in cement prices, the cost of labour and transportation charges have also increased this year.

Tambun Indah Land Bhd managing director K.S. Teh said the cost of labour had increased to RM45 per day this year, compared to RM35 a year ago.

Transportation charges for sand have increased to RM450 per truck load this year from RM400 a year ago.

“There is also a labour shortage, as many Indonesian workers have gone back to Indonesia, which is booming currently.

“The selling price of properties will be impacted by the hike in raw materials and labour costs.

“However, Tambun Indah will absorb the increase in the price of raw materials until year-end.

“We will revise our pricing next year,” he added.

Teh said the selling price of properties on the island would increase more because of the additional transportation charges to ferry the raw materials to the island.

“This is why the increase in property prices on the island will be around 10%, compared to about 5% in Seberang Prai,” he said.

Tambun Indah will be launching next month the Straits Garden@Jelutong on the island, the Pearl Residence@Pearl City and Pearl Indah@Pearl City projects in Simpang Ampat.

The Straits Garden is a high-rise project comprising 183 condominiums priced from RM688,000 onwards, while the Pearl Residence@Pearl City and Pearl Indah@Pearl City schemes comprise landed properties priced between RM353,000 and RM508,000.

Mah Sing managing director and chief executive Tan Sri Leong Hoy Kum said the cement price hike would have less than a 1% impact on construction cost.

“Most of our projects have been tendered out and the construction costs are already locked in,” he added.

SP Setia property (north) general manager Khoo Teck Chong said the group would absorb this impact for now to be competitive.

”If other raw material prices such as bricks, rebar and tiles were to increase drastically, we may then have to review and adjust our property selling price accordingly,” Khoo added.

Meanwhile, the Malaysian Competition Commission (MyCC) chief executive officer Shila Dorai Raj had said the price hike by cement manufacturers did not at this juncture warrant a formal investigation.

“Price increases are by themselves not anti-competitive in nature. However, if there is evidence of collusion among the competitors to increase prices, this would be of concern to MyCC and may merit an investigation,” she said.

By DAVID TAN davidtan@thestar.com.my

Friday 17 August 2012

Malaysia's growth forecasts raised after the actual 5.4% in Q2, 2012

 Malaysia's economy up 5.4% in Q2, manufacturing, demand support growth 

KUALA LUMPUR: Malaysia's economic growth, as measured by gross domestic product (GDP), for the second quarter ended June 30 rose by an unexpected 5.4% year-on-year, underpinned by an expansion in manufacturing and robust domestic demand.

GDP growth for the first quarter was revised to 4.9% from 4.7%, while growth for the first half of the year stood at 5.1% compared with the same period a year ago. Compared with the first quarter, GDP expanded by 3%.

In the supply side of the economy, only the agricultural sector saw a contraction due to lower crude palm oil production. Manufacturing, services, construction and mining all posted growth. Domestic demand jumped 13.8% for the quarter and rose 11.8% for the first-half.

The country's second-quarter GDP numbers came as a surprise to many economists, whose median forecast was for a 4.6% expansion. Growth for the quarter even exceeded the most optimistic forecast of 5.2%.

Zeti (far right) attending the briefing. With her are other Bank Negara officials Zeti (far right) attending the briefing. With her are other Bank Negara officials

Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz said at a briefing following the release of the GDP data that the surge in private investment was the most encouraging aspect of the economy.

“Private investment has made a strong return because the investment climate has improved tremendously, with Malaysia moving up the rankings of various surveys in terms of competitiveness, costs and ease of doing business,” she said.

Zeti said the improvement was underscored by the higher implementation of investments by domestic and foreign investors. She added that civil engineering projects in the oil and gas, transport, utilities and services industries had helped spur growth in the construction sector.

By numbers, investments from the public and private sectors jumped 26.1% year-on-year for the quarter under review, with the first half rising 21.3%.


By sector, private investments rose 24.6% while public investments surged 28.9%. For the first half, private sector investments grew 22.4% while public sector investments expanded 19.5%.

Consumption rose 8.9% for the quarter and 11.8% in the first half. By sector, private consumption increased 8.8% for the quarter and 8.1% for the first half while public consumption expanded 9.4% for the quarter and 8.4% in the first half.

Zeti said monetary policy continued to be supportive of growth and that for the rest of the year, risks weighed on growth rather than on inflation with external headwinds still overshadowing the outlook.

She said it would take time for the global economy to recover and this would need action from various stakeholders.

“At this point, we're maintaining our forecast of 4% to 5% GDP growth for the year but this may change when the budget is announced (on Sept 28). This will come in at the upper range of the forecast if growth is robust,” Zeti added.

Alliance Investment Bank Bhd chief economist Manokaran Mottain has revised GDP growth for the year to 4.7% from 4.5% previously, with the second half to record growth of 4.5%.

He told StarBiz the third quarter would see expansion at its slowest.

Manokaran said despite the surprising growth figures, the global and domestic economy's outlook for the rest of the year would still be dampened by the eurozone debt crisis, slower expansion in China and tepid growth in the United States.

“We believe the eurozone crisis will continue to have an impact on trade and this will show itself in slower exports growth,” he said.

He added that with a drop in manufacturing activity, sentiments would be affected, leading to slower growth in the domestic-oriented services sector as consumption slowed.

Manokaran said Purchasing Managers Index (PMI) for July indicated that exports would slow as demand dropped in developed markets.

CIMB Investment Bank Bhd economic research head Lee Heng Guie said in a report that the leading index for June suggested that the economy could weaken in the second half.

“We caution that a sharply high base in the second half of last year poses a hurdle to year-on-year growth,” he said.

He pointed out that the global Organisation for Economic Co-operation and Development composite leading together with regional high-frequency indicators, including trade and PMI, were still under external pressures.

Meanwhile, the Statistics Department released data showing that July prices as measured by the Consumer Price Index gained 1.4% year-on-year to 104.8 and remained unchanged compared with the previous month.

By FINTAN NG fintan@thestar.com.my The Star/Asia News Network

Economists turn bullish following better-than-expected growth in Q2
 
PETALING JAYA: Several economists have raised their gross domestic product (GDP) forecasts for Malaysia following better-than-expected growth for the second quarter ended June 30.

Malaysia's economic growth for the second quarter rose by an unexpected 5.4% year-on-year underpinned by an expansion in manufacturing and robust domestic demand.

GDP growth for the first quarter was revised to 4.9% from 4.7%, while growth for the first half of the year stood at 5.1% compared with the same period a year ago.

Compared with the first quarter, GDP expanded by 3%.

Hong Leong Investment Bank's (HLIB) research unit said that following the strong-than-expected second quarter data, it had raised its full-year 2012 GDP forecast to 5% (previously: 4.5%).

For the second half of 2012, HLIB Research expected GDP growth to dip to 4.5% year-on-year in the third quarter (dragged by subdued trade and manufacturing and higher base in the third quarter of 2011) before improving to 5.1% year-on-year in the fourth quarter, yielding an average of 4.8% year-on-year (first half: 5.1% year-on-year).

“We are still positive that line-up of the Economic Transformation Programme projects for the second-half and 2013 could still provide a strong support to GDP growth despite external uncertainty,” said HLIB Research.

According to Bloomberg, Goldman Sachs also raised Malaysia's GDP growth predictions to 4.6% from 3.8% for 2012, and to 5.3% from 5.2% for 2013.

Meanwhile, CIMB Investment Bank Bhd economic research head Lee Heng Guie said given the steady performance in the first half, he had raised the 2012 growth estimate to 5%, from 3.8% previously.

“However, this still implies a slower growth of 4.5% to 5% in the second half versus 5.1% in the first half,” said Lee in a report.

Lee warned that external headwinds still warranted caution as they remained hurdles to Malaysia's export growth.

Meanwhile, Maybank Investment Bank (IB) Research said its 2012 and 2013 growth forecasts of 4.4% and 5.1% respectively were under review.

“Provisionally, we expect 2012 growth to be around 5%, which implies a slightly slower growth of 4.8% in the second half as the global purchasing managers index in July signals that the global economy hence external demand will remain soft in the third quarter.”

Maybank IB Research said domestic demand would continue to be well supported by initiatives to sustain consumer spending, policies and measures to spur investments, and the roll-out and progress of big ticket infrastructure projects and capital expenditures in industries like oil, gas and energy.

By THOMAS HUONG huong@thestar.com.my The Star/Asia News Network