Interview with Pearly Lam

After graduation, Pearly Lam was searching for her dreams as anyone out there. Despite numerous obstacles faced coupled with indifferent views of many people, she went for her own way to start a business. "The most important thing is I truly know and understand what I want in my future. The determination to become successful will decide how far I can survive in this society", said Pearly during the interview with Finance Malaysia.

"I always believe in making things happen, and NOT waiting for things to be happened." Pearly Lam

Interview highlights:

Without any experience and knowledge of doing business, how you overcome it?

Although I don't have any experience before, the determination to start my own business leads me to cross the first step. I believe no matter how big is the dream, how long is the journey would be, we need to start the very important first step to make our dreams a reality.

For me, experience and knowledge can be gained along the way, as long as we keeps on learning through the processes. Of course, fear is always with you when you're new, especially during uncertain times. And to overcome it, self-motivation and equipping oneself with the positive thinking and mindset is my way.

Any advice for fresh graduates?

I believe that most of the fresh graduates have their own big dream and some of them are confused at what they really want in life. My advice is no matter which career path you choose, or what business you want to start with, you should have the positive mindset. What happens today would be a lesson for tomorrow.

What would be your greatest investment so far?

Until now, I don't really have any investment except my business. But, my most valuable asset was those part-timers or freelancers who had worked with me. Without them, I wouldn't reach where I am today. Thank you.

Finally, what's your say in 2011?

This year, my focus is to grow the company further while improving my personal skills in managing the business and man-power is a must. In 2011, I hope that the people around us would grow together and achieve our dreams together.

Finance Malaysia thanks Pearly for the interview, and wish her success in the journey ahead.

For more information about Elegimos, please click the links below:

Elegimos website

Elegimos Event Agency (Facebook Page)

No CNY Reunion Dinner for Stanley Ho?

Just one week left before the Rabbit Year CNY, local and international press are publishing the high-profile Stanley Ho's family feud. While we're busily shopping during this festive season, many people are chasing the "family drama", just like another popular Hong-Kong based production. Maybe, TVB's directors should consider converting the reality into a story-line drama/movie. I'm sure this could be a blockbuster-liked production.

Hong Kong and Macau tycoon Stanley Ho

SJM Holdings' most popular casino, Grand Lisboa

Obviously, fighting for money is very common nowadays especially for those wealthy families. To spice it up, the bigger the family was, the conflicts gets even greater.

Reportedly, Stanley Ho who has 4 branches of family and 17 children sure will intensified the degree of fighting.

Source: Wikipedia

Who is Stanley Ho?

• Stanley Ho, also known as Ho Hung-sun, is an entrepreneur in Hong Kong and Macau. 
• Nickname "King of Gambling", he get the government-granted Macau's gambling monopoly 40 years ago.
• Hong Kong's 13th richest person with a net worth of USD 3.1 billion in 2010.
• Businesses includes entertainment, tourism, shipping, real estate, banking and air transport.

Stanley Ho's prized asset, SJM Holdings Limited...

• One of the casino operators in Macau.
• Market Capitalization : HK$ 73.63 billion

Source: SJM Holdings Limited

Source: Bloomberg

Depending on the outcome of the wealth distribution saga, Stanley Ho's CNY celebration will be well-received by the most happily inherited family. I doubt the saga will end just before CNY for Stanley to enjoy his old-age celebration with at least one of his four families.

Good luck, Stanley.

Source: Bloomberg, SJM Holdings Limited, WSJ, Wikipedia

Extractions from BNM monetary policy statement

As expected, Bank Negara Malaysia (BNM) decided to maintain the Overnight Policy Rate (OPR) at 2.75% yesterday. This was the 3rd time in a row that BNM left it unchanged. Are there any hints by BNM on Malaysia's economy this year? We can explore the "hidden messages" from the monetary policy statement as below:

Regional Front:

• While advanced economies continue to register modest growth, most emerging economies have experienced strong growth.
• For Asian region, domestic economic activity continues to support the growth momentum amid weaker external demand.
• Shifts in global liquidity have resulted in significant capital flows into the emerging economies, in particular, Asian region, and have brought with it risks to macroeconomic and financial stability.
• The region is also being affected by global inflationary pressure arising from the higher commodity and food prices.

On Malaysia:

• Recent indicators point towards a sustained expansion in private sector activity.
• External demand, however, was affected by the slower global growth.
• Malaysian economy is expected to grow at a steady pace in 2011, underpinned by continue firm expansion in domestic demand.
• Private consumption will be supported by sustained employment and income growth.
• Private investment activity will be supported by domestic-oriented sectors and the expansion of new growth industries.

 On Inflation:

• Domestic headline inflation rose towards the end of 2010 albeit remained low at 2.2%.
• The increased was mainly on account of higher food and energy prices.
• Prices are expected to increase at a modest pace in the coming months, driven primarily by rising global commodity and food prices.
• The assessment is that inflation will continue to be driven by supply factors with limited evidence of excess demand exerting pressure on prices.

BNM Conclusions:

• BNM considers the current monetary policy stance as appropriate and consistent with current assessment of the economic growth and inflation prospects.
• The stance continues to remain accommodative and supportive of economic growth.
• Going forward, additional policy tools such as the statutory reserve requirement (SRR) and macro-prudential lending measures may be considered to avoid the risks of macroeconomic and financial imbalances.

Finance Malaysia view:

• We expected inflation to rise at a faster pace in 2011
• BNM to continue hiking interest rate in second-half 2011
• OPR potentially be raised by 50-75 basis points to 3.25-3.50%
• Bank's loan growth will slow if SRR was raised

Source: BNM website

For full BNM monetary policy statement, click here.


Related posts:
70% Loan to Value
How BNM OPR hiking affecting the market?

KL Mart after 6 consecutive days of Dropping (27/01/2011)

If you ask any broker or remisier out there, they may show their unity in explaining the 2 weeks down trend of KLCI, by saying "Pre-CNY profit-taking ma". Sounds so familiar every year? Yes. This is a very good excuse for them or even fund managers to explain the sudden down trend, which caught many investors who jumps in the 2011 new year rally just three weeks ago.

Pre-CNY surprise?

When will market rebound?

Today, investors are experiencing a KLCI rebound, be it technically or not, right before CNY next week. Before this, many of us are predicting a "risky" January, given the rich valuation KLCI commanding after 2010 run-up. In December 2010, we are still in a very cautious mode, only to find out that KLCI reaches a fresh one week all-time high right after 2011.

The rally caught investors by surprise, and the great profit-taking too...

KLCI are expected to rebound after yesterday morning staggering 20 points slump, only to recover shortly to close 6 points down. Technically, this shows a "hanging hammer" sign which signals a potential technical rebound soon. (Proofed by today's performance)

Would it still counted as "Pre-CNY" profit-taking?

Finance Malaysia thinks that the market is in an opposite trend comparing to previous years. Normally, the so called profit-taking will kicks-in right before CNY (supposedly today). However, this year is a little bit different. The profit-taking activities came earlier, and investors are going back to the market right before CNY. Would it be a double profit-taking this year? Let's see...

After the current down which ends yesterday, we may look at those stocks which battered down most since 17th Jan high.

RHBRI: Bottom 20 stocks under RHBRI coverage ranked by Absolute performance since 17th January 2011 High

New Fund: CIMB-Principal Strategic Income Bond Fund

Post-financial crisis, bonds remain the preferred asset class for more conservative investors because it is less volatile than equities. Asia, for example, remains a sound investment destination with rapid urbanization as a younger and higher population growth will necessitate greater infrastructure spending in the coming years.

To provides the golden opportunity, CIMB-Principal Asset Management Bhd has launched a new fund, that allows investors to capitalise on Asia, Australia, New Zealand and Middle East's improving credit conditions given the high potential of more rating upgrades.

"The demand for high-quality bonds in these targeted countries continues to remain high given the low interest rates outlook in the US and Europe, and this should support bond prices for the next few years. In addition, the slower economic recovery of these developed markets is shifting investment appetite to Asia. Combined with the likelihood of bond rating upgrades, this will mean potential good returns for investors who want to invest in regional high growth prospects in a stable manner." said Campbell Tupling, chief executive of CIMB-Principal Asset Management.

More about the fund....

This is a close-ended fund that aims to provide regular income and capital preservation through investments in predominantly bonds and other fixed and floating rate securities.

What's the strategy?

Generally, the fund adopts a buy-and-hold strategy by investing 70%-90% of its NAV in a diversified portfolio of bonds and other fixed and floating rate securities issued by governments, government agencies, supranational organizations and corporate issuers. The fund may also invest in structured products and/or derivatives, in which the underlying are linked to the above mentioned securities.

What's the bonds/securities rating you're looking at?

The fund may invest in investment grade securities and high yield securities, subject to a maximum 40% of its NAV in securities rated below "Baa" by Moody's or equivalent rated by S&P and Fitch.

The fund is suitable for investors who:

• have 3 years investment goals
• are not planning to have access to their money in the next 3 years
• are seeking exposure to investment opportunities in fixed income securities

Source: CIMB-Principal

Click here to download prospectus

 

Related post:

New Fund: CIMB-Principal Australian Equity Fund

Globalization Index 2010: Malaysia better than BRIC?

Brought to you by "Ernst & Young", the Globalization Index was created to measure the extent to which the 60 largest economies (by GDP) are connecting to the rest of the world. The indicators fall into 5 broad categories:

1. Openness to trade
2. Capital movements
3. Exchange of technology and ideas
4. Labor movements
5. Cultural integration

 

How did Malaysia fared in 2010?

Yes... Malaysia perform better by sitting on the 27th place, one spot ahead of US!!! On top of that, we're globalizing better than BRIC (Brazil, Russia, India, China) countries. Of course, the Index has its method of measurements.

Top 10 ranking

How did the Index measures?

The Index measures "relative" rather than "absolute" globalization. This means that an economy's trade, investment, technology, labor and cultural integration with other economies is measured relative to its GDP rather than by the absolute value of these elements being exchanged.

As a result, smaller economies (like Hong Kong and Singapore) that depend on international integration will tend to have a high level of globalization, while larger economies (like US and BRIC) that can rely on a big domestic market will tend to have a lower level, even though the total amounts exchanged internationally involved may be much greater.

The Index, therefore, reflects the degree to which the global integration of an economy is observable or experienced from within that economy.

Key highlights of Globalization Index 2010:

Once again, technology remains the key driver behind deepening globalization. In the emerging markets, the rapid adoption of the internet and mobile technologies is a powerful engine behind the greater integration of trade, capital, culture and labor. And, in some cases, it leapfrogging the West in terms of their infrastructure.

Click here to view the full list of the Globalization Index 2010

Related post: Again, Malaysia falls in competitiveness

Google News - the news aggregator! – Part II

Some of you might have seen the news piece about Google suggesting a novel way of constructing an alternative inflation measure using their huge Google database of web shopping data!

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Now, since I have suggested an alternative way of using Google’s data I find this suggestion particularly intriguing. As I have mentioned in an earlier blog Google News - the news aggregator I wrote the first (as far as I know) academic paper, back in 2008, on the use of news aggregators in finance:

Byström, H., (2009), News Aggregators, Volatility and the Stock Market, Economics Bulletin 29 (4), 2009, pp 2679-2688.

In that paper I discuss how news aggregators can be used in a financial context. Among other things I suggest that Google News could be used to construct an alternative to the widely used “fear indicator”, i.e. the VIX-index.

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It seems Google themselves share my optimism about using their web services to measure financial parameters in an efficient way. While my focus was on measuring the amount of fear in the market using one of their web pages their suggestion is to measure the price changes in the economy using products sold over some of their shopping web pages. And just like my measure is an alternative measure, their inflation measure is an alternative measure since the goods bought and sold on their web is different from those included in the traditional CPI measure. Both approaches of course have their pros and cons but personally I like the fact that mortgage payments are excluded from the Google Price Index (GPI).

It seems that Google is stepping up its attempts to conquer the world! I cannot say that I overly like that scenario but considering that I have just switched to Microsoft’s Windows 7 and Office 2010 (involuntarily), and considering how horrible these two Microsoft products are, I can only say one thing: Go Google Go!!