Effects of Global warming

Pre-winter Snow....i soOoOo can't wait for thanksgiving =)

Our friendly neighbor and some things Malaysians should be aware of...

And so... i was in New York last Saturday....at the lion's den....gasping to the vision of the tiny little red dot.


It was a wet wet wet wet day and the weather only permitted me to detour over to Ground zero before that..not much progress since 9/11? It's really amazing that the WTC didn't collapse sideways and flattened the surrounding buildings.....



Anyway, here's some take-away from Singapore's Economic Development Board (EDB)'s Chairman, Mr. Lim Siong Guan at the Singapore's Consulate for UN Mission ....

Singaporeans are EXTREMELY paranoid. They are very worried about the future, ...and have every reason to do so.

They boasted that they've 7000 MNCs and another 7000 of rising MNCs in the country.

The government recognized and readily admit to every single weaknesses they have. BUT, in true Singaporean mentality, they will turn it around and make theses weaknesses their strengths. Remember the water fiasco? Singapore got so worried about the reliance on Malaysia that they work arduously to create NeWater. And within those few years of development, the project won the equivalent of the Nobel Prize for Innovation or something (I can't really remember the exact name of it).


Where is Singapore heading to ?

The EDB is rigorously observing China and India, ostensibly because their plans evolve around the economy of these two countries. For starters, they introduced the session with this video by Fareed Zakaria (which i think is a bit brainwashing):




What struck me most was that:

1. EDB does not consider Malaysia a worthy competitor in the long run.
   

• They no longer believe that M'sia is competitive enough to stay afloat in the present economic climate and have shifted their focus to Indonesia, which are now their yardstick to predict ASEAN's direction. EDB has gone as far as to develop urban estates with the collaboration of the Indonesia's authority in Batam. What was interesting to note was that Indonesia is much more independent, free and liberal in their policies. The initial project in Batam was a failure because Indonesia simply couldn't open up Batam as an exclusive site. They claimed that if Batam is that "special", then every piece of land in Indonesia should be subjected to the same treatment. And believe it or not, M'sia took this as the model for Iskandar in johor.



• To illustrate M'sia incompetence in getting in FDI's, Mr. KC, EDB's Director of International Operations explained to us that a major solar company knew that the cost of setting their base in m'sia was way lower than in singapore in 10 years, but because of m'sia's red tape and bureaucracy inefficiencies, EDB snatched them at the very last minute.

2. Singaporeans don't like playing games, so they constantly change the rules of the game.

• "low cost" is no longer their trump card in attracting foreign investors in the wake of rising nations such as India, China and Indonesia.

• To be competitive, they've adopted a different approach, that is, civil efficiency. Firms tend to make decisions at the very last minute and exhaust all revenues to avoid making risky decisions.

• The catch is that they like to start businesses immediately to maximize profit. Here's how EDB comes in. Singapore allows MNCs (which they recognize) to set up base @ Singapore within 24 hours after the decision is made (compared to m'sia, which is 5-6months?). and since time = money......, these firms tend to say bye bye to m'sia most often than not.

3. They are very transparent, straight-to-the point and sometimes ruthless.

• EDB bashed the American economic model (where 70% of the GDP comes from Consumption), and doesn't believe that Economics professors in the West can grasp that of the East. The US and most western European economies are dependent on consumption and that's why lowering the interest rate and bailing out companies seem to be the most effective way to combat impending recession.

• In Asia, countries are investing in the future by flowing their money into education, urban development and research instead of injecting cash into the financial market (with the exception of m'sia, of course). They don't mind suffering now, but these countries intend to and will rise stronger after this debacle.

• To some extent, he was a bit apprehensive of Obama's welfare state policies that benefit the homeless. US rewards a person IF he's not working whereas Singapore compensates a person IF and only if he's working BUT the employers do not commensurate him enough. see the difference.....

• The Japanese, on the other hand, are willing to sacrifice for their country and that's why they are able to consolidate under the government and survive the 90s when there was no/slow growth in Japan.

• EDB readily admits that they are NOT concern about their sluggish share market. They are not bothered if a person lose 10 million but still have 1 million to spare. What is more pertinent are the taxi drivers and hawkers who loss all their savings in the market...which is very true....

• They also believe that the current financial turmoil is timely for price correction, especially on the real-estate market where values of properties in Singapore have ballooned beyond control.

What's their game plan for the next 50 years?


1. To beat Hong Kong (and perhaps shanghai?)and become the premier financial and banking hub of Asia

• EDB reasoned out that Hong Kong's development is heavily influenced by China. For some non-apparent reason (at least to me), they are confident that China is more interested to develop Shanghai rather than Hong Kong

• The Indian and Chinese middle classes, who are getting wealthier by the day, will not want to keep their money in China or India, but instead, they'll invest in "less risky" places, and that's where Singapore will play its role.

2. Capitalizing on India's and China's Growth.

• EDB always tells companies who are setting up factories in China and India that they cannot monitor China activities from India and vice versa (because it'll give a bias point of view). To monitor the market in Asia, Singapore will be the best bet.

• And, since Singapore is a microcosm of Asia (having 70% Chinese, 17% Indians, 10% malays and the rest, others, EDB offers Singapore to be their testing ground for new products.

• This does not mean that Singaporeans are guinea pigs (which i initially thought), instead, they will be the first to have the latest i-phone, i-pod or any other latest gizmos.

3. Capital and Research Development

• Singapore has evolved from manufacturing and capital intensive to human resource development. Their current mission is to have 1000 scientists working with them by 2015. This will be achieved from the A-Star scholarship, which has already given out 700 (of the total 1000) scholarships to date.

• Their research biotechnology park is able to accommodate 10,000 guinea-pigs aka mice in their basement. This will support the 100 over scientists that will be working there.
  

• And of course, they are able to attract the best in the world through their compensation package as they develop NUS and NTU.
  

4. Non-important necessities...

• Singapore doesn't bother whether they can manufacture their own Proton or build their own KLCC BUT they care a lot about having BMW's and Boeing's bases in Singapore with Singaporeans working in these firms.

• The aging population- yes, singapore admits that their population is aging but this is an opportunity for new drugs to be tested and clinical trials to be executed.
  

5. Heck, they've built a bunch of MRT stations that trains will not stop until 7 years time.....




Singapore is the master of planners.
They prepare for anything............
They just like to be ready...............................

It's all part of the grand vision of Singapore...


So Malaysia, where art thou?

Oh and also Thanks to the Singaporeans tax payers for the USD 25 amazon voucher and sumptuous ala Singaporean lunch.


Pictures are all courtesy from the Singapore's EDB presentation, slides and website.

The Boss says.....

What (i thought) the boss said:

1. Growth and the Economy

• Growth in Malaysia will be sluggish for the next few quarters, contradictory to whatever the mainstream media is reporting.
  
• Malaysia is taking a "preventive and preemptive measures" by restructuring 'bad' debts by banks, which most often referred to as bailouts.
• There is active monitoring by the Bank's regulating body and Malaysia should not be hit as hard as those Americans and Europeans.
  
• She however, remain defiant that FDI flow into the country has not decreased over the years.
• The ringgit will remain strong but she did not explain the multi-billion losses in reserve over the last 6 months.
• It is interesting times for the financial sector, so read the newspapers more often =)

2. Politics and the Economy

• The Bank has been playing an NAP role over the years and this will not be different even if there's a change in administration.
• Senior officers have been able to get things around due to their "dinosaur" seniority but once this generation leaves, she implied that she will be proposing the formation of an independent regulatory body (which i believe will be pushed somewhere early next year before Badawi retires for good under the pretext of reform)
• The Boss claimed that she advised the PM to not increase the oil prices so drastically early this year, but the effort was futile (as we all know), emphasizing that such plan has to be done in a gradual manner as to avoid artificial inflation.
  

3. Interest rate and the reasoning behind MOP's decision.

• The overnight lending rate or most commonly referred to as the interest rate will not be revised down or up.
• The Bank will not succumb to the pressure by its European and American peers to raise the interest rate to curb inflation (that is ballooning) or to lower it in the wake of impending recession (which our friendly neighbor has officially declared a few weeks ago).
• The boss reasoned out that there was no justification to have a revision because the inflation is artificial (due to the sudden increased in oil prices) whereas a lower rate will no doubt help growth now, but monetary policies are meant for the long run. The Bank believes that the current rate will reflect the country's economic climate once things are less volatile.

4. The Maybank-Indonesia Bank Bt. Fiasco

• The decision to acquire the Indonesian bank was made after many revisions.
  
• Yes, she admitted that the money paid does not correspond with the worth of the bank now because Merrill and Lehman fell the very next day after the takeover was done but that was due to bad luck.
  
• She, however, holds firm that the analysis done by the Bank leading up to the acquisition was accurate and reasonable at that point of time.
• There were many revisions done before the deal was completed because of the changes and incoherent acquisition regulations by the Indonesia's authorities and not due to the negotiations on the price that were to be paid by Maybank.

5. The Bank's HR, students and scholars.

• The bank would like to, ostensibly, have students who are interested in central banking to consider a stint at the Bank.
• The boss, in her usual manner, was composed (thus i'm not sure whether she expressed her disappointment or disapproval or was surprised or any emotions for that matter although students who raised the issue were rather gung-ho about it) that there were claims on HR inefficiencies in dealing with internship requests and emails, locating scholars in the US for the function, and the lack of guidance, direction and action during the internship stints.
  
• On the issue of scholars pursuing finance bound to the US (where problems are abundant for those who are in the know), she refuted the idea of awarding "major-less" agreements and reiterated that scholarships are given based on the needs of department (and i totally agree with that statement. Those applying should know what they are getting into. Besides, i thought the bank was rather accommodating to "major-changers")
  
• The other issue that was brought up was the Bank's (and i think Malaysians in general) appreciation of degrees related to international relations, psychology or other humanities studies. I'm not really sure what her reaction was, but what i can remember is that the boss side-tracked and said something along the lines of departmental needs.

That basically sums up the conversations we had with the boss over lunch, I probably missed out a lot of other details since i weren't paying attention most of the time. oOoOoOoOooo well...




This is an update from the previous post:

The Boss and I @ Boston..........

Princeton University

My appologies for the immensely late update =(. Been extremely busy the last few weeks trying to rewire my brains et all.

Anyway, I shall continue where i left out with Princeton about 2 months ago? aha..it is that loooOOooOoOong ago....

The fourth oldest college in the United States is the most outstanding undergraduate school in the world simply because :

1. Princeton has the largest castle-quad/dorm I've ever seen in my life with dining halls just a stone throw away.

All their buildings are styled ala Gothic that is synonymous with their ivy tag. They are soo freaking rich that the administration consume money like water.

As an illustration, it seems Princeton hired an enormous bunch of consultants and architects to construct structures that MUST blend into the campus environment and its other Gothic-century old buildings. AND when 1 of the buildings did not cut the grade, they tore it down and hired another bunch of consultants to design and built the whole thing all over again.... .


2. They even have a Gothic-fountain smack right in the middle of classes. Perhaps for cooling purposes? Another show of blatant extravagance.....


3. Oh, and their libraries, each has a distinct characteristic that prominently reflect the department's individual strengths.

For example, the math library which was recently constructed. Any imaginary derivable curves or lines are incorporated in and around the building.

The Firestone library, constructed after WWII, has over 75 miles of bookshelves! For the record, Princeton libraries have the most books per student of any other university in the world.

4. Princeton has a policy of NO frats or sorority on campus. They are BANNED. In exchange, they've "eating-clubs", a very much tone down version of frats (housed in a castle like the one below).

5. Their engineering faculty boasts one of the most advanced underground-labs in the world. And to emphasize on their spending power again, everything is built way bigger than they should be. just look at those those pillars....

6. The most important and probably the most distinguish school at Princeton that heavily contributes credence to its name is the Woodrow Wilson School of Public Policy. Second to none in the world, their scholars are all top-notch, most cited, and influential in the realms of international relations, diplomacy and policy-making.

7. Equally prominent is their natural sciences faculties that consist of 14 Nobel laureates in their rosters whereas their Math department boast 9 Field Medalists. Notable professors include John Nash (the master of game theory) and Andrew Wiles (the math genius who solved Fermat's Last Theorem).

8. Like any other reputable university, Princeton has a culture of itself and their students follow strictly by it. For example, no students walk out of the main gate before graduating, signifying their commitment to the pursuit of academic excellence.

9. Their compound is so surreal that one could actually stop and sit on the lawn to read. The exams are conducted based on the Honor Code, meaning, there will be no professor observing the students while they take the exam. One just need to collect the paper, finish it up at anytime, anywhere within the stipulated time period and hand it in once it's done. Of course, if anybody is caught cheating, they'll be thrown out of the university.


10. They have their own NJIT station that conveniently linked the university with Newark International Airport, New York City, Philadelphia and New Jersey.

11. Princeton placed so much importance on its students intellectual development, creating a buffer zone free of capitalist corruption that there is NO influential presence of corporate firms, starbucks etc on campus. When a company comes for recruiting or if an NGO wants to solicit their students , all their flyers are wholly designed by the students themselves ....and they get paid for it.

12. Finally, who could refuse the tiger? rawr..

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