Saturday, March 07, 2009

Thinking Aloud - Illusions & Collusions

A reader suggested that I summarise my thoughts every now and then. I thought that was a neat idea. Kind of like an occasional column. Well, here goes nothing:

I have tried to stay away from the utter breakdown in our political system. The back biting, the anarchy, the hidden hand, where is the truth, what are we teaching our young ones, what kind of example are we setting?

I thought we all moved up the ladder thanks to "March 8". What happened? Birthing-pains? Maybe so, it was never going to be smooth, the road to redemption. Which one is fighting a losing battle? I have a strong opinion, you may want to hazard a guess. Why so kalam-kabut? Its mainly that the institutions in place have never been 'allowed' to exercise their duty and care independently - the courts, the police, the new anti-corruption body, even some lawyers... when they are not able to act independently, without fear or favour, this is what you get. There should be the rule of the law, but when the law is not the same for everyone, you get lawlessness.

No one should cite bible verses to justify their position, let the truth speak for itself.
All I can say is that the actions and deeds are clear to most Malaysians. You may win some battles but the exact things that are allowed to happen will ensure that you will lose the war. Nobody is naive enough to think that... ok you might have strategised well to win some battles, sure we will back you now!!??

The events just leave a much deeper bad taste in our mouths. Even those on the sidelines in "March 8" are now going with the flow. You are trying to put barricades and obstacles to a strong flowing river. It may disrupt the flow but you cannot reverse the river's flow.
If you had tried to realise the anxieties and dissatisfaction emanating from "March 8", and truly tried to change for the better, things might have stood a chance. When you are being hauled away, you can go quietly or go away kicking and screaming. All the kicking and screaming just confirmed that many of us have made the right choice, nobody is being cowered into submission.

Malaysians are fed up with the collusions and illusions, the magician have run out of tricks, and we are not amused. .... and how was your week?

When you do a stimulus plan, do not refer to cuts in our EPF contribution as a windfall, its our money. Do not refer to reducing our EPF contribution as fiscal stimulus by the government, its our money. If you say that everyone can withdraw half of their EPF money, do you still call it a stimulus fiscal plan by the government? Its still our money. Stimulus should come from the fiscal budget, or via deficit financing of government revenues and future revenues, not from your own citizens' coffers. Btw, things in government coffers also belong to the people. If you refund half our taxes paid in 2008, then yes that is a stimulus plan by the government for the people.
I don't think ValueCap should even exist in the first place. I thought EPF did equity investing in local stocks, or am I wrong? Or are they doing a bad job? EPF funding for ValueCap, isn't that using our money to buy more shares in the Bursa, isn't that using our own money to support share prices? Why the need to support prices? If nobody is buying the shares, go and tackle the issues why people are not buying in the first place. We are always fond of taking the easy way out.

p/s photos: Yui Aragaki


Gerry said...

Well said. Thanks for voicing my frustrations outloud.

de minimis said...


That reader was right, you should summarise your thoughts once in a while. It makes for great reading.

From the get go, Valuecap was a dodgy proposition. Where does "market making" end and "manipulation" begin? Worse still, it didn't work.

George Choo said...

Mr Dali,what you have written is correct.You know why the govt have to borrow RM 5 Billion from EPF,increase in TOLL (subsequently cancelled),selling of Telekom quarters govt land in Cochrane road and refused to reduce petrol price even though crude price has gone down and the RM 10 Billion stimulus package(to be announced) which is grossly insufficient when the amount needed is RM 30 billion.The reason is that the govt of Malaysia is on the verge of BANKRUPT.

Jasonred79 said...

Dali, let me summarise Valuecaps existance:

EPF is under mandate to balance a certain % of it's assets in equities, and a certain % in bonds.

In order to support the sharemarket, they created valuecap.

All money that goes into valuecap is written into EPF as BONDS. (with all the associated risk profiling and stuff in the accounts). Despite the fact that Valuecap puts all the money into equities.

Nevermind. Anyhow, this is government's "clever" way of getting around EPF risk allocation mandates.

ETONG said...

So now that the govt is not above raiding EPF, get your money out of EPF and park it overseas before the riggit drop further

Purple said...

In order to finance the SSP mentioned in a later article of yours, the govt could issue more MGS.

Guess who will take up the lion's share of the MGS ?

EPF, baby !