Friday, July 31, 2009

Global Monetary Fisticuff

Globalization Effect

(1) The meltdown of global financial markets has left the world in crisis, with some of the most successful nations now haunted by financial instability, facing surged unemployment and country recession.

(2) The economic situation of countries which we have previously witnessed as one of the rapid economic development nations in the world such as Japan and South Korea, as well as new emerging nations such as Russia, China, India and Brazil are facing hiatus in their nation development.

(3) Our country Malaysia, being one of the nations under the developing and emerging economies, has also been severely affected by the present crisis, although we were not directly involved with the dealings that have led to this unsustainable situation.

(4) Such is the nature of globalization.

(5) The current world economic crisis was caused mainly by a combination of world macroeconomic imbalances and severe weaknesses in the US and Western financial system.

(6) Whilst many countries struggle with the current world financial crisis, many companies on the other hand, are in dire straits and may go bankrupt anytime.

Global Unemployment Surged

(7) In the past decade, many populations such as Poles, Latinos, and Chinese from rural areas immigrated voluntarily to other countries; many South Asians work in the Gulf with no resentment but one objective – to survive and earn a living.

(8) However, the sharp turn in the global economy recently sees the global economic meltdown hitting the contemporary world badly, causing many to lose their jobs.

(9) According to International Labor Organization’s (ILO) latest report, ILO revised upwards the worldwide unemployment projections from 210million to 239 million in 2009. ILO’s updated projections of working poverty reviewed approximately 200 million workers worldwide will join the ranks of people living on less than USD 2 per day.

(10) Many of them are working in multinational companies, both local and abroad.

(11) If they were laid off by their current company, the flow of remittances from rich nations to poor countries, which used to be quite resilient during past few economics crisis, will create another incessant impact and effect in the future. And this laid off will also bring a significant consequences and repercussion on the workforce in all labor market sectors worldwide, apart from social issues.

(12) If ILO claimed such number of unemployment representing the worst performance on record in terms of employment creation worldwide, how do we ensure that the employment losses and human hardship are under control? And especially since the depth, breadth and duration of the crisis are still uncertain. Inequality and poverty are still the main concerns of many countries.

(13) Depth and breadth of the financial crisis couldn’t be solved as they have affected all countries worldwide especially when the unemployment rate, imports and exports have each surged and dwindled tremendously over a short period.

Care for Macroeconomics

(14) We need to respond and react to the world crisis and press on the dimension of globalization. It is imperative for us to understand and realize the dimensions and cause of the problem.

(15) Unemployment, inequality and poverty rate has increased drastically due to the impact of the financial crisis, and due to the world’s developments being underpinned by ‘solid’ progress in banking & financial industry.

(16) Both political and economical analyses have to be carried out and executed. Otherwise, it is hard for us to restore growth on a strong footing. The study and revision of the relationships between nations, among nation, market and society, between globalization and de-globalization, in the aspect of issues or subjects concerned with people within society, and economics, politics, sociology and geography have to be taken to a more detailed level.

(17) If subprime crisis or the housing bubbles were the root cause of today’s economic and financial disaster, why don’t we study, examine and revise our past policies?

(18) If efficient-markets hypothesis (EMH) model, an economic model applied and practiced in the financial industry especially in US and Europe for the past 30 years, has crashed and brought us to the present state of crisis, how do we restore and reform the financial situation worldwide? We hope to take an econometric approach to the problems of the current financial disasters in order to reveal more about the cause, as EMH has been applied for the past 30 years.

(19) If Dynamic stochastic general equilibrium (DSGE) models helped guide deliberations at several central banks, shall each country study and examine the models then?

De-globalize in a Globalized World?

(20) Fiscal policies and public policies that attempt to respond to the crisis so far have contributed little to the world, as global monetary issues have been bombarded after the subprime crisis. How regulators and politicians rally the disorganized, imbalance and unhealthy financial system, are doubtful and vague now. We need to reexamine public and fiscal policies we have been implementing for so long, to identify new short and long term policies.

(21) Early this month, the hospital industry of USA agreed to accept a cut of $155 billion in their expected revenue, after meeting with the country’s vice president Joseph Biden. Will de-globalization ease the present dire financial crisis?

(22) G8 summit meeting in Italy early this month declared: “Social and employment policies are a crucial pillar in the context of a new global framework”. What then are solutions to address human dimension of this crisis? How about the effects, impacts, and burden of the unremunerated work, which is particularly headed by women? Will they bring any positive results?

Imponderable Future

(23) We are facing an imponderable future. This uncertainty ‘encourages’ those who have saving to not commit to new capital projects. Subprime crisis deflated the housing bubbles. Does that mean we have previously ignored the control of housing properties, and let the prices boom to the likings of property tycoons? Is free market really free? How do we safeguard the financial stability worldwide? Do we need to switch our gears now?

(24) The world is actually engaged in fisticuffs now. Not a boxing-match in boxing ring, but rather the fiscal policies worldwide, in each nation and between nations. Housing bubbles deflated; banking and financial systems crashed. We have many renowned economists, and none of them is telling us what to do next. Nobody can envisage the consequences of the crisis, and nobody has the idea how to fix the rusty financial system.

Note: This article can also be found in BloggerStation.

Saturday, July 18, 2009

Fatal Investigation at MACC

I was paralyzed with terror when I heard Teoh Beng Hock, a former reporter whom I met a few times at activities a few years ago, purportedly killed himself abruptly, despite his two-months pregnant fiancée still waiting at home to register their marriage the next day.

Teoh, the political secretary of Ean Yong Hean Wah (the Selangor state executive councilor) was brought in for investigations at the Malaysian Anti-Corruption Commission (MACC) Selangor office in Shah Alam on Wednesday, and was said to have plunged himself from the building after MACC detained him for questioning over the alleged abuse and misappropriation of funds by his boss.

Fatal investigation at MACC building will not only create hatred among Malaysians, but also insecurity, panic and anxiety for the rakyat on entering Malaysian government bodies, especially if one were called in for investigation or held in custody.

Whilst I was struck with dismay, shudder in cold and shed tears reading about the tragedy, questions popped in my mind.

Was this mysterious death a suicide or foul play? If we were to rule out foul play, where and what are the proofs? How did MACC conduct interrogations on Teoh? Are there video recordings on the entire interrogation process? All his belongings, according to reports and updates, were with MACC, except his mobile phone. Where was it and why was he without his mobile phone during his death? When was Teoh’s last call or last sms (and to whom)? I hope the phone company which Teoh subscribed to, can provide this information, as to facilitate matters or produce them as evidence of the case.

This tragedy has left many of us sinking into despair. We must call for a Royal Commission to investigate the truth behind Teoh’s demise. Malaysians harbor hope in the MACC to address corruption matters in the country efficiently and professionally. Setting up a Royal Commission to probe into Teoh’s death is necessary to uphold the reputation and credibility of MACC; else the rakyat will definitely look at MACC with questions and doubts in mind.

My deepest condolence to the family and friends of the late Mr Teoh Beng Hock.

Saturday, July 11, 2009



地点:Extra Super Tanker Chinese Restaurant (
地址:Restaurant Extra Super Tanker, No 1, Club Drive, Bukit Utama, Bandar Utama, 47800 Petaling Jaya, Selangor.


在首相推出“One Malaysia”后,有者对于这“One Malaysia”毫无概念,所以同时间他将与博客们共同探讨。

由于聚餐被安排在15-07-2009,所以恳请有兴趣出席的博客们尽快在13-07-2009(星期一)之前RSVP -,或者是致电03-21618044 ext 412 / 410,联络新闻局秘书处,以便预订座位。

此聚会旨在与博客们互相交流One Malaysia和国家时事/政治课题的意见,希望各位对政治/国家热诚的博客们拨冗出席此聚会.