Canadian Subsidiaries Automaker Bailout

The 4 Billion Canadian Dollar loan granted by the Canadian Government and Ontario Provincial Government to General Motors Canada and Chrysler Canada is a clear set back to the U.S. Canada Free Trade agreement 1989. As a student in 1989, I clearly supported the move by the then Mr Mulroney's Tory Government for a freer trade between U.S. and Canada.

Now that the U.S. is in a bad shape, Canadians too have to suffer the consequence of failing auto industry. Though I have never been to Windsor which is the Canadian city of Detroit, I could imagine Windsor as a ghost town in January 2009 IF the Harper Government plays Adam Smith's Free Market idea.To restructure a big organization like GM in 3 months will be an excruciating job BUT I know with decades of experience GM, Chrysler and Ford either in Canada or the U.S. could rejuvenate the auto industry again.Furthermore with a zero to 0.25% Fed interest rate, North Americans may now be allowed to turn their purchases toward Big 3 compact models (even if they receive unemployment insurance).I welcome the willingness of Canadian Auto Workers to cooperate with the government and the automakers to prevent more lay offs.

I still remember reading a blog which says she is losing her home BUT she cannot afford to lose her car too! BECAUSE for homeless North Americans now their vehicles are their beds.

MERRY CHRISTMAS

With the 6.7% unemployment rate in The United States, I foresee a gloomy Christmas. Nonetheless this is the first time since 1990 that I am able to wish viewers the spirit of Christmas.

The subject is Jesus ( in Malay it is ISA ). While Christians believe Jesus as the son of God, Muslims believe Jesus is one of the 25 prophets i.e.the last is Muhammad S.A.W. When I was in Canada NEVER EVER I attended any service at any church whether in Saskatoon or Outlook. I believe that ALLAH is my God and Muhammad is my prophet.

BUT

I will always remember the 1989 Christmas present given to me by a Caucasian lady. She may now married with kids but that 1989 Christmas present would always remain inside me. She knows who she is!!! (looks like Drew Berrymore in Never Been Kissed)

Merry Christmas.

Gasoline Prices in Malaysia

AS of today December 16th 2008, price of gas in Malaysia is reduced again by 10 sen. Now
Ron 97 is RM 1.80 per litre
Ron 92 is RM 1.70 per litre
Diesel is RM 1.70 per litre

Thank You again Pak Lah!

GAS Prices & Gross Domestic Product GDP

On December 3rd 2008 the Pak Lah Government reduced the gas prices by 10 sen more. Now
Ron 97 is RM$1.90 per litre
Ron 92 is RM1.80 per litre
Diesel is RM1.80 per litre


Malaysian economy grew remarkably well during the three quarters of 2008. For the
1st Quarter 2008 GDP is 7.1%
2nd Quarter 2008 GDP is 6.7%
3rd Quarter 2008 GDP is 4.7%
Thus, Malaysian economy only need to grow by 1.5% to achieve the target 5% growth for the whole 2008. For 2009 I envisage Malaysia GDP could achieve at least 2.5% growth.

MALAYSIAN MONETARY POLICY AS AT 24th NOVEMBER 2008

I welcome the move by Malaysian Central Bank i.e. Bank Negara Malaysia to reduce interest rates. Bank Negara Malaysia decided to reduce the Overnight Policy Rate by 25 basis points to 3.25% from the current 3.5% - Hence the ceiling rate now is 3.5% and floor rate is 3% respectively.Even at this current rate I still envisage a downward trend in interest rates.

Effective 1st December 2008, the Statutory Reserve Requirement (SRR) for banks will be reduced from 4% to 3.5% - Obviously Malaysian Banks would have more cash thus would be able to provide more opportunities for businesses and the Malaysian public.

MALAYSIAN GAS PRICES AS AT 18th NOVEMBER 2008

The Malaysian Government has reduced again the price of gas by 15 sen. Now

Ron 97 is RM2 per litre
Ron 92 is Rm1.90 per litre
Diesel is RM1.90 per litre

The trend of crude oil prices to keep on decreasing has prompted Pak Lah to initiate the move for a floor price of gas in Malaysia. Even at RM 2 per litre for the Ron 97 Malaysians are still being subsidized by 30 sen.

Although oil exporting nation like Malaysia is heading for a shrink in oil income, the Government should take that bold move to remove gas subsidies altogether in Malaysia.Maybe it would be hard to swallow (even for me to pay gas at RM3 per litre should world crude oil prices increase again). Nonetheless economic well being of young Malaysians must be considered too.The ceiling price is RM2.70 per litre for Ron 97.

I LOOK forward to the announcement of Malaysian Gas Floor Prices!!!

AMERICAN EXPRESS - Bank Holding Company

Federal Reserve has given American Express the right to function as a bank holding company. To me it was a long wait. I remember when I was in Canada (from 18 August 1987 to 28 May 1989 AND from August 21st 1989 to 13 October 1990) University of Saskatchewan students always receive a pre approved AMEX application form in The Sheaf(University of Saskatchewan newsletter). But I never ever fill in that AMEX form. Maybe then AMEX was just a charge card and I am not a Canadian.

I also wonder why a corporation like American Express never really a Bank. In Malaysia we have a company MBF which issue Visa and Master Cards but MBF is not a bank.Since the abolition of Glass Steagall Act 1933 and the formation of IBBEA 1994 and GLBA 1999 we know American banks were very much deregulated. Is deregulation of banks the culprit to the existing American credit crisis beside the securitization of mortgages? We know AMEX would not give out mortgages per se. My guess is that Bush Administration require a boost in Christmas shoppings thereby make the US economy move again. But everybody knows Christmas 2008 will not be a good festive season.My only HOPE is American Express would NOT turn to Chapter 11 that very soon.

Malaysian Gas Prices As At 1st NOVEMBER 2008

Pak Lah Government has reacted. Gas prices in Malaysia was down again by 15 sen as at 1st November 2008. Now

Ron 97 is RM2.15 per litre
Ron 92 is RM2.05 per litre
Diesel is now RM2.05 per litre

The rebate of RM625 given to every car owner will continue until March 2009 when a new scheme will be implemented.

FINANCE - My Field of Study

I cannot understand why some people said I was forced back to Malaysia in October 1990 because I cannot do engineering courses.Surprise! I do ! When did I take up engineering?....although my physics is quite strong.
The currency crisis 1997 has been a bless to me because since my car crash December 2nd 1990 my mind was brain washed to FORGET EVERYTHING about Canada.BUT I still remember my basics. Whether to peg or de peg a currency, forward market, futures, Options and Swaps.Maybe I did not do well in my Intermediate Managerial Accounting BUT it was just one or two courses. The reason I chose to specialize in Finance was Black Monday crash 1987. I remember on that day and the day after most of my seniors were freaking out and passed out drunk because of the TSE (now TSX)index fell sharply. I never thought that stock market crash would destabilise an economy in such a way. Why does the market passive to reliable information and yet reacted positively to untruth information.....
The recent market crash since the fall of Lehman and AIG to me is another blessing. Thanks to Tim Berners- Lee idea of www. Now I am really revising in depth the mechanisms of Finance and not just remembering what Futures and Options is all about.Or even CDS (in Malaysia CDS refers to Central Depository System and not Credit Default Swap).The calculations of fees on mutual and trust funds versus hedge funds...Its all coming back after 18 years.
By remembering what I learned at Edwards School of Business Saskatchewan has helped me a lot to mentally cure my emotions although the desire to at least obtain a Saskatchewan Certified General Accountant designation is still there. Certainly to get the Certified Management Accountant or Canadian Institute of Chartered Accountants C.A. designation IS NOW beyond my reach.I know I cannot get a good job and I won't get anything for remembering Finance per se BUT these memories which helped me to sooth myself beside reading the Quran and pray 5 times a day.
I have more than 65% confidence in the Minister of Finance, Hon Najib who is an Industrial Economics graduate from Nottingham University UK. Apparently Najib would also be the next Prime Minister of Malaysia in March 2009 God Willing!