Categories
Economics

[696] Of Proton to sell Lotus?

When I first heard that Proton was selling Agusta of Italy for €1, in my mind, it’s purely economics and it’s an acceptable immediate loss cutting step. Now, with this new cooperation with Volkswagen of Germany, it’s rumored that Proton might cut its ties with Lotus. For me, this is starting to go beyond economics. According to Business Times:

This was the second provision Proton made for the year after RM165 million set aside in the first quarter. “(The sale) may be a prelude to a tie-up with VW. The German carmaker may have stipulated the sell-off of loss-making non-core assets as a precondition to taking up a strategic stake in Proton,” Mayban Securities added.

The research house speculates that the next major non-core asset to be sold could be its Group Lotus plc unit, as it reckon VW has superior engineering expertise and experience in performance cars in the Lamborghini and Bugatti marques.

“Lotus would, therefore, be a duplication of resources. At this juncture, this view is purely speculative,” said the research house.

I first came across it here:

1316 [Dow Jones] STOCK CALL: Mayban Securities speculates Proton’s (5304.KU) sale of 57.8% Agusta stake “might be a prelude to a tie-up with Volkswagen”. Move also shows new Proton management prepared to bite bullet, make painful decisions so as to turn around Proton. Also speculates Proton may sell 100%-owned sports carmaker Lotus in run-up to VW tie-up. But admits, “at this juncture, this view is purely speculative.” Keeps Trading Buy call with MYR7 target price. Shares +2.4% at MYR6.30.(CAL)

I hope that Proton would hold on to Lotus. I hope, however the people inside Proton do the cost and benefit analysis, the result is that keeping Lotus brings on net benefit to Proton.

And if I weren’t an economics graduate, I would say, screw the German and keep Lotus.

Categories
Society

[695] Of Arabs aren’t Malays and Malays aren’t Arabs

For the last few days, I’ve been out and about in some place south of Kuala Lumpur. Apart from falling off a bike in a very fashionable way and severely lacked the stamina I would like to have, I overheard a conversation between two Muslim Malay males, both were draped in Arabic dressing. The conversation was about westernized Malays. I wasn’t sure if they were talking about me in particular though I was wearing a Michigan cap, a cargo pant and a bright shirt while my mp3 player was valiantly trying to entertain me until it ran out of juice. And it died out exactly when the conversation started to get interesting. Before that, I didn’t eavesdrop on purpose – situation forced me to be where I was.

One of the two friends was lamenting on how the Malay society is rapidly being westernized at the expense of the Malay culture. The person went on further by stating sooner or later, Malay culture would die out with morality and god phrased out by burgers and pizzas, g-strings and bikinis.

The other one agreed and began lambasting how inferior western cultures and moral are compared to Islam’s. It was odd how they used the term Malay and Islamic culture interchangeably. Soon enough, as I followed the conversation quietly while tending to my cool wound, I realized that the Malay culture they were talking about was really Arabic. They made no distinction between Malay, Arab and Islam.

I rolled my eyes upon that discovery and felt how oxymoron the situation at hand was. They were talking about the Malays abandoning Malay culture while they themselves were wearing something not Malay but entirely Arabic. Thanks to that, hypocrites is the best noun to describe the two Arabized Malays. I think, they would grasp very well what the word munafiqun means.

I’m no sociologist but I learned long ago that culture is a way of life. It doesn’t matter how a person lives his or her life but however they choose to live it, it’s their choice and that’s their culture. In essence, they choose their culture and indeed, I choose my own.

I’m a Muslim Malay. At the same time, my culture is a hodgepodge of many cultures that I’ve had the luxury of interacting with. A hybrid culture if I may. Furthermore, I take that culture isn’t a static intangible thing. It changes and adapts to time, just like how many of us do. This is especially true to hybrid cultures.

As a result, I appreciate diversity and am no purist. While no purist, I do hate how English words are being imported with impunity into the Malay language (check also Hijacking Bahasa Melayu at theCicak). If George Orwell were a Malay, he would agree with me for he wrote that one should never use a foreign phrase, a scientific word, or a jargon word if you can think of an everyday English equivalent in Politics and the English Language. But that is another topic to be harped at, at another time.

Due to my hybrid culture, I find the conversation mildly offensive. They were deriding part of my culture while turning a blind eye on their, through their other eye, sin. I would have offered my opinion to them about their clothing but with low stamina and knee in uncomfortable pain, I had no appetite for a potentially heated discussion on culture.

While giving the topic a thought, I realized that this hypocrisy is not exclusively the two Arabized fellows’ problem. This Arabization is spreading fast and affecting Malaysian culture. Look no farther than Putrajaya. Notice how Arabic the city actually is? Where is the Malay in it? The Chinese or the Indian in it? The Dayak or the Iban, the Minang, the Bugis? Where’s the Malaysian in it?

Then, look at PAS efforts to Arabize Terengganu and Kelantan. One time, I clearly remember that they banned wayang kulit, Mak Yong and other Malay heritage in the name of Islam. They even removed a giant turtle sculpture in Kuala Terengganu for the sake of Islam. As far as I care to remember, the sculpture was synonymous with Kuala Terengganu. A deduction – PAS banned the Malay culture and then encourages Arabic in place of cultural vacumn that PAS had created!

In reality, these Arabized Malays just hate everything that isn’t Arabic, including things that are Malay. Here, by no mean I’m deriding the Arabs. Arabic culture is part of me. If I were dismissing Arabic culture, I would be dismissing mine too and that wouldn’t be right. I’m merely debunking the two guys’ thinking and their kind.

I’m quite liberal on culture and hence, I don’t mind if one insists into living like the Arabs. I myself, at risk of redundancy, have said earlier that I choose my culture and one may choose his or her own too as I’ve chosen mine.

Nevertheless, if you are the two fellows whom deride other Malays as abandoning Malay culture in favor of western’s one, please take a look in a mirror. Before expressing that idea, please notice that you’re abandoning Malay for Arabic. Arabic culture is not Malay and Malay is not Arabic. Being a Muslim isn’t about being an Arab either.

Categories
Economics

[694] Of economic experiment: bartering

I’m kinda in a hurry. So, this will be a quickie.

My mom wanted to simply throw way this blender. It’s a little bit leaky down under.

Mohd Hafiz Noor Shams. Some rights reserved

I told her that she should recycle it but she said, it’s easier to simply throw it away. I, feeling guilty seeing that thing goes unrecycle, took it and am turning it into a little economic experiment . Bartering.

Inspired by one red paperclip, let’s see how a blander will do me good.

Here’s the deal: I want to do some bartering. If you for some reason that I don’t want to know, want or need to this blender, offer me something and if our wants or needs, mostly wants, coincide, we’ll trade. Simple. And no money please.

If you are interested, email me or simply leave behind a comment here. Aight?

Later.

Categories
Politics & government

[693] Of Kedah’s Chief Minister and a threat to the spirit of the federation

Kedah’s Chief Minister resigns today. With that, the current acting Chief Minister is expected to be “appointed” as the new Chief Minister by the Prime Minister. My question is, since Malaysia is a federation, why should the new Chief Minister need to be chosen by the federal government instead of being elected into office by the people of Kedah?

Of course, one could say that it’s representative democracy; just as Malaysians don’t elect our Prime Minister directly, Kedahans don’t get to elect their Chief Minister directly too. But let’s face it, if the Prime Minister doesn’t approve, there’ll be problem even if there’s popular support.

The case is not limited to Kedah. Selangor’s Chief Minister himself was chosen into office by the federal government and wasn’t elected by the people of Selangor. The same case goes for Sabah – remember the cyclical premiership?

The only few exceptions to this in recent time are Kelantan since the early 90s and Terengganu in 1999. In both cases, a nutty opposition was in power.

It’s no accident that all the states with its Chief Minister appointed by the federal government are states controlled by Barisan Nasional, which is the ruling coalition. Does this look like BN is violating the principle of federation and decentralization? Though the division between state and federal power is still largely intact, if things don’t change, BN will overrun the spirit of the federation. Hell, BN’s already on that by emphasizing August 31 more than September 16.

Just to note, decentralization is part of green’s principles.

Categories
Economics Science & technology

[692] Of Finance Ministry, lies, damn lies and statistics

Yesterday in the Malaysian Upper House, the Malaysian Finance Ministry Parliamentary Secretary was reported of saying that “ringgit is relatively stable compared with the currencies of Malaysia’s major trading partners after the government removed the ringgit peg on July 21.”

More:

Hilmi said that since the transition, where the ringgit exchange rate was determined by market forces, the local currency had risen compared with the euro by 11.9 percent, yen (9.7 percent) and between 0.2 percent to 7.7 percent compared with regional currencies.

“After the depeg and up to Nov 30, the ringgit has increased compared with the US dollar by 0.6 percent to RM3.7783,” he said in his reply to a question posed by Senator Datuk Seri Lam Kang Sang at the Dewan Negara sitting, here Tuesday.

Hilmi said that the ringgit also rose compared with the euro by 3.8 percent and yen by 6.7 percent and mixed against regional currencies.

The funny thing is, while what he said is true, somehow, I feel that he has conveniently omit what’s going on in December 2005. For this month, the ringgit is growing weaker against:

USD

Yahoo! Fair Use.

EUR

Yahoo! Fair Use.

JPY

Yahoo! Fair Use.

SGD

Yahoo! Fair Use.

United States, Japan and Singapore are the top three major Malaysian trading partners.

From the graphs, capital flight is apparent.

Earlier last month, I realized that Malaysia seems to have a negative real interest rate. Soon after, Bank Negara raised Malaysian nominal interest rate up to 3%. At 3%, I feel the real interest rate is still negative. Another rate hike is a must for Malaysia to have positive real interest rate given that inflation is above 3%. A positive real interest might stop and reverse this December’s run.

Unless the Bank Negara increases the rate and in turn, halts this gradual and minor capital outflow, I would hardly call ringgit as stable.

p/s – Chinese statisticians say: Whoops. We forgot to add USD280 billion into our 2004 GDP. With that corrected, we just want to say that we’re the sixth largest economy in the world.

Others: Ack! You forgot USD280 billion? (Malaysian estimated GDP for 2005 according to Wikipedia is USD290 billion)

pp/s – SuprNova.org, the site that I depended on many things fun before it was shut down, speaks.