Author: Hafiz Noor Shams

For more about me, please read this.

Categories
Humor Politics & government

[1711] Of tailgate party in front of the Kelana Jaya Stadium tomorrow

The mercury is rising out there. With the Deputy Prime Minister has been accused of being linked to murder, a former Deputy Prime Minister accused of having too much fun while rumor of the announcement of emergency tomorrow, I think it is time to chill out a bit. There will be a huge gathering tomorrow. Initially supposed to bitch about greater fuel prices, Anwar Ibrahim is expected to make some big announcement. But us commoners should just let the big boys play the slugfest. We should just go up and enjoy the Sunday.

Tomorrow in front of the Kelana Jaya Stadium, let us drive our MPV, set up the grill and have a tailgate party prior to an announcement by Anwar Ibrahim that, according to a friend which heard from a trusted source which in turn was informed by the American intelligence, may set in motion a coup d’tat.

Bring a tent too. It will be hot tomorrow. Or rain. It is Malaysian weather after all. It is worse than Malaysian politics as you can imagine. In any case, you certainly will not want to miss the drama.

Forget not to marinate your chicken and beef and lamb and other edible stuff. And some turkey too, just in case we need to visit the Turkish embassy. But please, please, do not bring cat, dog or any exotic meat. Maybe some paddy chicken is alright since we expect a lot of human-sized frogs on Sunday.

And oh, if you plan to have a barbeque tomorrow, marinate your stuff today!

We could throw some balls too and play catch. And maybe, get your children to fly the flags of PKR. You know, like how they do on every football Saturday?

A coup d’tat? Sounds like a French delight, do you not think so? We must celebrate with clam chowder soup with french fries and maybe with some croissants with cheese. Haha. Instead of a civil war, we would probably go to war with the French over this. Aux armes citoyens!

And oh yes. Do not forget your “I Oppose Fuel Subsidy” banner tomorrow! Or “Change Your Lifestyle!” Or “Tian Chua for Prime Minister!”

Categories
Economics Environment

[1710] Of solution or shut up

The Kedah state government has come under criticism for its decision to log timber in its water catchment areas. While I disagree with the decision, I feel too many sides are criticizing the state government without providing any solution — with the exception of Sahabat Alam Malaysia (SAM).

Here, I want to offer two solutions to the issue that will leave those trees in peace:

SAM rightly pointed out that Penang needs to compensate Kedah for refraining from logging timber within the water catchment areas from which Penang draws its water supply. In everything that we do, there is always an opportunity cost and Kedah is no different in this respect: one of those costs involves the decision to log or not to log.

A similar idea of compensation was proposed at the United Nations Climate Change Conference held in Bali, Indonesia last year with the objective of halting the destruction of rainforests. The origin of such an idea itself goes back to 1937 when economist Ronald Coase first proposed it. I will not bore you with the economics but what I am trying to do is demonstrate that this idea is not as novel as it sounds.

While SAM gets the idea of Coase, the state-to-state compensation is not as on target as I would like it to be. It does not link the issue with the market and any state-to-state compensation may amount to a water subsidy in the end.

A better compensation method will see consumers themselves compensating the owner of the catchment area and, in this case, the owner is the Kedah state government. This is also the reason why I do not prefer the idea of having the federal government compensating Kedah. This allows the opportunity cost to be included into the water bill of Penang folk. With that, the opportunity cost faced by Kedah will be flipped and eventually provide the state with a chance to reassess its priority. Needless to say, that translates into higher charges for water consumption for Penang folk.

The beauty of this suggestion is that it also encourages water conservation. It reveals the true cost of water to consumers and allows the consumers to appreciate the problem faced by Kedah even more. It is a model for advocating more sustainable water consumption.

The second solution involves property rights. Those who wish for a guaranteed continuous clean water supply from Kedah can purchase rights over the trees or a tract of land within the catchment areas. At the right price, the Kedah state government will sell the rights to the trees and be relieved of the temptation to cut them down. This, of course, only works if the new owners do not succumb to the temptation of cutting down the trees for money.

But the two solutions somewhat digress from my original thought. What I am trying to say is this: please offer solutions. Criticism, however justified, is simply not enough.

Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved

p/s — a version of this article was first published by The Malaysian Insider.

Categories
Liberty

[1708] Of o’er land of the free

I am in a rush but I cannot let this hour past without posting anything.

Happy Fourth of July.

Categories
Photography

[1708] Of akedrem muidats

I want to blog but I am too tired and too tied with work.

Some rights reserved. By Hafiz Noor Shams.

For story behind the picture, go to Metblogs KL.

Categories
Economics

[1707] Of build-sell or sell-build?

Tony Pua (okay, okay, MP Tony Pua) raised an interesting issue in his blog. There, he expressed his approval for the build first and then sell later arrangement (build-sell) proposed by the Selangor state government in replacing sell while building arrangement (sell-build?).[1]

While the build-sell model does have its benefits, namely having the potential of reducing the number of cases of buyers being cheated by developers, the currently popular sell-build structure does have its benefits too.

First of all, it allows individuals to purchase home at a cheap price. Developers, assuming there is no fraud involved, will be willing to sell yet to be built or completed homes at a discount to accommodate any risk undertaken by the purchasers. Furthermore, time value for money faced by the developers encourages them to accept smaller amount from purchasers here and now compared to any time in the future.

Secondly, it encourages developers to be bold and thus, encourages growth in the construction industry. This is due to convenient cash flow. If the developers had to wait for months before they could see the first cent of revenue coming in, I think a lot less developers would be willing to participate in building homes. Or at least, smaller developers would have less opportunity to do business. Small developers most likely could not withstand the large net outflow of cash they would have to suffer between the start of construction and completion date. In the end, not only the construction industry could see less growth, a build-sell world could create a world close to a monopoly in which only large developers which could withstand sustained net cash outflow until the date of completion survive. I am well aware that financial institutions are there as underwriters but then again, through what limited experience I have, banks are very risk-averse and that increases cost of doing business.

Anyway, I am ambivalent in the debate between build-sell and sell-build, if there is a debate at all. But I am certainly would be unhappy if the state decided to coerce developers into adopting a particular structure.

Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved

[1] So when I read that the Selangor state government intends to implement the “build then sell” concept of housing, I’ll all hands in support. [Build The Sell. Philosophy Politics Economics. July 2 2008]