People coming together as one

MUSING WITH MARINA MAHATHIR

When people of all faiths gathered last Sunday for a special prayer session for the successful surgery and speedy recovery of former prime minister Tun Dr Mahathir Mohamad as well as for the continued health of the country, for peace and harmony, it was an emotional experience many will never forget.

THERE are occasions when people come together in our country as part and parcel of our custom. We come together for weddings, birthdays, anniversaries, festivals and of course funerals. We also get together to give our thanks when someone has passed exams, or gotten through a difficult experience or major surgery.

In the past week many people have gathered together to give thanks to God for my father’s successful surgery and to pray for his speedy recovery. Most of these have taken place in places of worship or in private homes where members of each respective faith have given thanks and prayed in their own religious traditions.

On his way to recovery: Dr Mahathir, his wife Tun Dr Siti Hasmah Mohd Ali and staff members of the National Heart Institute posing for a picture at the hospital in Kuala Lumpur on Monday. — Bernama

But on Sunday a very different thanksgiving gathering took place. Since my father underwent surgery we have received numerous messages of support and encouragement from Malaysians from all walks of life, race and religion. Everyone has offered prayers for his safe surgery and complete recovery afterwards. We have been enormously touched by this unexpected groundswell of love.

Last Friday, my family organised our own thanksgiving prayers at the Masjid Wilayah. But we were also acutely aware that in doing so, we were leaving out whole swathes of people who had no less sincerely offered their own prayers with much concern for my father. So in appreciation of that, we organised a multi-faith thanksgiving gathering on Sunday evening.

Although it was organised in only two days, it was heartening that people of all faiths responded to our invitation without hesitation. First to confirm his presence was Archbishop Murphy Pakiam representing the Christian community. Then Swami Samyam Ananda was named to represent the Hindu community. The Taoists and the Baha’is confirmed next and finally the Chief Buddhist Monk of Malaysia said he would return all the way from Kuantan just to attend.

I then had to find a Muslim imam who would be able to grace the occasion and respond to the presence of the other faiths in the warmest way possible. A moment of inspiration made me think of Imam Feisal Abdul Rauf, an imam from New York, who has many ties to Malaysia and who, as luck would have it, happened to be in town. He also agreed without hesitation.

Although friends had spread the word as much as possible, I had no idea who would turn up. But as friends, acquaintances and even strangers arrived I could not help but become emotional. People don’t necessarily express themselves through words, but their actions spoke louder than the thunder above our heads.

The evening began with the maghrib prayers led by Imam Feisal. While we Muslims fulfilled our obligations, the others respectfully listened quietly outside. When we were done, the religious leaders took their places in a semi-circle of seats in front of everyone. Then each in turn, beginning with the Buddhist Chief Monk, began prayers in their own way. Each also said something in English so that everyone would be able to understand that they each gave thanks for the success of my father’s bypass and for his continued good health.

After each one had spoken, Imam Feisal then ended the session by saying a few words about how, even though we each had our own ways, we all prayed to the same God and we were united in praying for the same thing. Not only did everyone pray for the health of someone they held dear but also for the continued health of our country, for peace and harmony.

I don’t think anyone was left unmoved by the whole ceremony. They had come to wish my father well and to lend me support and then experienced something that seems so rare these days, a coming-together of Malaysians for a common cause and unity but with so much respect for the diversity of beliefs.

Everyone prayed in their own way, nobody felt that their beliefs were trampled on. Nine days after Merdeka and a week before Malaysia Day, those present experienced what it felt to be truly Malaysian. If only it wasn’t so rare.

My father’s heart, which has always belonged to all Malaysians, is mending well. I truly believe that it is because all Malaysians, through their prayers, have donated pieces of their own hearts to him that he is making so much progress. I have no doubt that when I tell him what happened on Sunday night, he will be equally moved.

We need more events like these, not just when we need to show concern and sympathy, but also when we want to express joy and celebration. It is when we are able to witness how each of us worship that we are able to respect one another’s beliefs, to know that no religion wishes bad things on those of other faiths.

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A truly Malaysian dinner

MUSINGS
By MARINA MAHATHIR

We were all mixed up – Chinese, American, French, Irish, Javanese and I don’t know what else – and we ate the same food and enjoyed the same entertainment.

MY aunt celebrated her 80th birthday recently and her daughter, my cousin, had a party to celebrate.

Held at a hotel with an eight-course Chinese dinner, the evening gathered everyone from my family as well as my aunt’s and her daughter’s.

This meant that the relatives present that evening were Malays, Chinese (because my aunt is Chinese) and my cousin’s American in-laws.

I wore a Nyonya-style sarong kebaya in homage to my aunt’s heritage while my best friend, who is married to my cousin, wore a cheongsam. There were baju kurung, sari and dresses, while men wore batik shirts or suits.

To me, that room was Malaysia. I looked around that room with pride because all these people were family or related to me by marriage. And we were all mixed up. We ate the same food and we enjoyed the same entertainment.

At the same time I felt sad because I knew there were people outside that room who would have clucked in disapproval.

There are people who think we should not greet people of other races and religions. Yet that would mean I couldn’t greet my own relatives.

There are people who think we should not share meals with people of different faiths. But isn’t it when we share a meal that the best spirit of warmth and understanding among friendly conversation is born?

In my family I have relatives who are Chinese, American, French, Irish, Javanese and I don’t know what else. But we don’t spend a lot of time thinking about race and nationality. I never thought of my aunt as Chinese until her party, at which time I felt proud.

There may be people who think well, it’s okay to accept all these different races into your family because after all, they had to become Muslim. Well, that is true.

But the foundation of our respect and love for each other is not the fact that we all have the same religion but because the same ties of loyalty and unity that every family enjoys bind us too.

After all, there are certainly mono-religious and mono-ethnic families that quarrel and break up too.

I kept wondering if families like ours would be possible in 50 years if some people have their way. Would our society be as welcoming of other races as we have been?

I worry about the type of supremacist ranting that we hear these days and think who in their right mind would want to marry into families of another ethnic group?

After all, marrying may change your religion, but it doesn’t change your race. Wouldn’t you always wonder if your in-laws thought you were inherently inferior?

I conducted a small poll recently to ask people how they felt as our 50th Merdeka nears. An overwhelming 84% said they felt sad because we were going backwards. I can well understand that.

I had to take my daughter out of a national school because I felt that she was not learning to be Malaysian there. How ironic is that?

As an impressionable young child, she was learning very early to differentiate everyone by race and religion, with the underlying assumption that hers was superior to everyone else’s.

Her friends were doing the same. It was not the environment I wanted for a child who has siblings who are only partly the same race as her.

If race and religion are the primary criteria for one’s choice of friends, what about values like honesty, loyalty and mutual respect that are normally the ones that we look for in our friends?

Do they become secondary? Do we have to assume that the only people who will treat us well and who deserve our respect are those who, by total chance, share the same ethnic genes and faith as us?

A Malay father was telling me how the Malay teachers in the Chinese school his kids go to treat them. He taught them to always greet their teachers respectfully when they see them.

But those particular teachers refuse to return the greetings. Is this what good Muslim adults should be teaching children?

We celebrate our 50th anniversary of independence in a couple of days, yet we have not freed ourselves from mindsets that are narrow, communalist and intolerant.

Some people are threatening to wipe out our entire legal history by throwing out our present legal system and substituting it with one that has rarely been applied with any true sense of justice.

Today, there are people who think our present Constitution was a mistake. If these moves mean we have progressed, then we are living a joke.

I am going to celebrate Merdeka with a little neighbourhood tea party. After all, our little street is a microcosm of the Malaysia we love. So why not get together?

Maybe in the future, gatherings such as this will be forbidden. I will surely grieve then.

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Vital to start planning for your retirement early

COMMENT BY V.K.CHIN RETIREMENT is meant to be a rewarding experience when those who have toiled for decades to raise families and contribute towards nation-building can relax and take it easy.

Retirees are supposed to spend whatever time they have left to do the things they have always wanted to but did not have the time as they had to earn a living.

But the opposite is true in many cases as the majority of retirees are in fact facing a nightmare in just trying to support themselves with the basic things in life.

Their main torment is finance or lack of it. It is estimated that at least 70% of retirees and pensioners were just not prepared to stop work because they could not afford to.

Most of those in the private sector depend on their Employees Provident Fund contributions for their retirement. This is almost the only money they have to look after themselves.

Unfortunately, it has been proven by none other than the EPF that most of the money would be gone in three years after its withdrawal.

This is indeed a very sad state of affairs and the workers have only themselves to blame for their plight.

Very few people have proper planning for retirement. They do not save enough for this purpose until too late. Though everyone starting work should be saving for this purpose as early as possible, they only realise the seriousness of their situation in their 40s or 50s.

Without their compulsory EPF contributions, many of them would have been even worse off with almost nothing to their name. Many have their own homes and if they are lucky, they would have settled their mortgage by then.

Life insurance is still frowned upon by some as not being urgent and in any case not many earn enough to put money into shares, bonds or other saving instruments.

Saving outside of the EPF is not a culture as people may have difficulty in coping with their monthly family and personal commitments financially.

EPF contributions are also being drawn to meet the demand for funds for housing and health. This will further limit the money meant for retirement.

Too many are expecting their children to look after them when they retire.

They are prepared to use whatever assets they have for their children’s education.

Many of them would have been left penniless by the time their children complete their studies.

They would then be completely at the mercy of their children.

If the kids are filial, then the parents would have a comfortable retirement.

If not, then the last few remaining years would be extremely difficult for the retiree.

Some children can be extremely selfish and may insist on going to study overseas though their parents may not be able to afford it.

Parents may have to mortgage their house or borrow a sizeable loan for this purpose. They may end up bankrupt if their children refuse to repay the loan.

There are countless such sad stories and these are serious social issues where not much can be done to help. It is impossible to tell those nearing retirement that they should keep some money for themselves instead of using it all to educate their children.

Parents should be practical and realistic. If their children are not academically good enough for university, they should opt for vocational education where they would be able to obtain a skill to earn a decent living.

It is worth repeating this message so that hopefully the message will sink in and those approaching retirement would take measures to protect themselves financially.

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LOOKING AHEAD: Genuine multiracial firms to get government contracts

Genuinely multiracial companies will be given priority in the awarding of government contracts, the prime minister said.

Datuk Seri Abdullah Ahmad Badawi said the joint ventures had to be bona fide with all parties sharing responsibilities.

“Only genuine joint ventures where every person has a role and works hard, shares in the profits and bears the losses equally, will be considered.

“I’m not saying there must be 30 per cent Bumiputera participation.

“Let the partners decide that for themselves, whether it is made up of Malay-Chinese, Malay-Indian, Chinese-Indian or even Malay-Chinese-Indian,” he said at the 54th MCA annual general assembly at Wisma MCA yesterday.
The 1,738 party delegates responded with loud applause.

Abdullah had earlier stressed that Barisan Nasional believed in power-sharing, or muafakat.

“Power-sharing is an important principle in BN. We do not give 100 per cent to any one group. We believe in fair distribution.”

“Ali Baba” arrangements, he said, were unacceptable.

“We once met a Bumiputera businessman who applied for a government contract but we discovered he was only a front for a Chinese company.

“Where mistakes were made in the past, now is the time to correct them.”

More joint ventures comprising of the various communities should be set up, Abdullah said.

“I’ve always encouraged contractors to expand and go overseas. Create a truly Malaysian company and I will give you the support.

“If the public cannot share power at their level, we at the top will face problems.”

Developing human capital was also one of the BN’s areas of emphasis, he said.

“We believe in enhancing human capital without discriminating on grounds of race.

“All our youths have a role to play in the country’s future, whatever their racial backgrounds.”

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FIRST MALAYSIAN STUDENT LEADERS SUMMIT 2007: Raja Nazrin speaks his mind…

“FIFTY years of the national relay race has been run and we have covered a good distance and achieved much.

However, every coin has two sides.
Let us not be naive in thinking it is all a rosy picture. There is still much room for improvement.

Interaction between the ethnic groups, to the extent that it exists, remains more of an urban phenomenon. In recent years, ethnic identities appear to have become more explicit. In some instances, what divides us has become more emphasised than what unites us.

Moreover, the impasse at the global level between Islam and non-Islam affects even a moderate country like Malaysia.

Matters of faith are topics of immense controversy. They provoke overzealousness and coercive action, and drive Malaysians further and further away from each other.

Our diversity was meant to be our unique asset. The Federal Constitution and the Rukun Negara institutionalised living together in peaceful, harmonious co-existence.

YET, 50 YEARS AFTER MERDEKA, WE ARE STILL GRAPPLING WITH CONCERNS ABOUT UNITY.

It is also very important we have leaders who are earnest in maintaining unity, never resorting to religious or ethnic posturing to further their political careers at the expense of peace and security. If they fail, they must be held accountable and made answerable before the law.

Malaysia needs a future generation of leaders with unquestionable integrity. Only those who are capable, responsible and scrupulously honest should be allowed to serve in positions of leadership. Those who are inefficient, incompetent and, most importantly, corrupt, should be held in absolute contempt.

The current phase of nation-building should be in tune with the temper of the times to reflect new realities of the modern world. We are facing a globalised environment where excellence and meritocracy are the rules of the game. The opportunities in the global world reward those with ability, regardless of colour or creed.

A multi-ethnic country like Malaysia has to be especially watchful since, in the absence of a strong national identity, we are prone to polarisation and competition along ethno-religious lines.

The Constitution is the supreme law of the country which guarantees fundamental liberties to every citizen. A cleverly crafted document, it clearly provides for adequate checks and balances against excesses through the separation of powers between the executive, legislative and judicial branches — with each protected from encroachment by the other.

It has often been said that many a misunderstanding may be avoided if the principles embodied in the Constitution are adhered to strictly.

Upholding the rule of law is paramount.

In this connection, I can do no better than to quote the words of Baroness Helena Kennedy QC, a leading jurist: ‘Law is the bedrock of a nation; it tells us who we are, what we value. It regulates our human relationships one to the other and our relationships as citizens with the state… The rule of law is one of the tools we use in our stumbling progress towards civilising the human condition: A structure of law, with proper methods and independent judges, before whom even a government must be answerable… WE HAVE TO STAND UP AND BE COUNTED. WE HAVE TO PROTECT THE THINGS THAT MAKE OUR NATIONS GREAT…”

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Mutual Interest

By JIN JING

FOR the first time in her life, 32-year-old Wang Ying, an office worker in Shanghai earning 5,000 yuan a month with little prospect of promotion, feels rich, thanks to the booming stock market. She knows nothing about the stock market and has never bought a single share. But like millions of other Chinese investors, Wang has put a big part of her savings into a mutual fund. The initial investment of 10,000 yuan she made in July has already appreciated by 45%.

“I never knew making money could be this simple,” Wang says.

Now she is seriously thinking about parking all her family savings in mutual funds.

Her newfound enthusiasm is shared by many others. Latest figures compiled by TX Investment Consulting Co Ltd, a financial research firm, show the number of mutual fund accounts jumped 400% in the six months to June 30 to 43.49 million, of which 90% were invested in equity funds, with the remainder in various fixed-income funds.

The performance of 323 funds of 56 management companies has largely tracked that of the stock market in the past year or so.

Statistics from the People’s Bank of China show the aggregate net assets of all the 323 funds at the end of June amounted to 1.8 trillion yuan, up about 252% from a year earlier

Statistics from the People’s Bank of China show the aggregate net assets of all the 323 funds at the end of June amounted to 1.8 trillion yuan, up about 252% from a year earlier.

The rapid appreciation of the funds’ assets is reflected in the SSE Fund Index, which soared 114.4% in the first eight months of 2007. In a recent survey by p5w.net, a financial website, 76% of respondents said they expected mutual funds to outperform the stock market in the following months and 34.7% of respondents said they believed the price of stocks picked by fund managers would rise faster than the others.

Ask Zou Hua, a 46-year-old punter converted to a fund follower. “I used to have a lot of confidence in my stock market knowledge accumulated in years of investing in shares,” he says. But the best he could do in the bull run was a meagre 20% profit. “I’m putting my money in mutual funds now,” Zou says.

Although he continues to pay regular visits to his stockbroker’s office to watch the latest price movements on the TV screens, “I feel a lot more relaxed” than before, he says.

Mutual fund sales have peaked three times since last year. According to statistics from financial data provider Wind, the first time was during the second quarter of last year, when the number of new mutual fund issues jumped to 29 from an average of 15 in the previous quarter. During that period, the stock market rebounded from a low point, rising 28.8%.

Mutual fund sales again rose in the fourth quarter of last year, with issues of 23 mutual funds raising a total of 165.45 billion yuan, while the stock market jumped 52.67%.

Mutual funds have again been on a roll since the beginning of the second quarter of this year, with 20 new fund issues raising a total of 162.7 billion yuan. However, analysts warn investors must increase the holding period of the existing mutual funds while reducing their fund holdings percentage in the following months to prevent potential risks owing to high price-earnings ratio of stocks and possible policy adjustments.

“Fund investors better lower their expectation of short-term returns and choose bond funds to reduce the potential risks because companies’ growth potential has been largely factored into the current stock prices,” says Zhang Yu, an analyst at China Jianyin Investment Securities.

“The market did not react to the slide in other markets and to cooling policies at home. Given this, investors should stay even more cautious,” says Lipper China head of research Zhou Liang, who tracks the performance of mutual funds.

But Fullgoal Fund vice-chairman Li Jianguo says he is still positive on the stock market because of China’s strong economic growth. “Mutual funds are a long-term investment tool that need investors’ patience to wait for a much higher return instead of quick redemption.”

source : The Star, Wednesday September 24, 2007

The 80:20 rule on asset allocation

To protect ourselves from the present market volatility, investors can consider using the simple “80:20 rule” on asset allocation — invest up to 80% when the market is bullish and reduce to 20% if the market is in for a big correction.

Q: GIVEN the uncertainties over the future direction of the stock market, what should I do now?

A: Despite all the goodies from Budget 2008, our market was unable to escape from the effects of sharp drop in the US market.

The weaker-than-expected US job data raised concerns over a possible economic recession soon. At present, given that our market is highly influenced by the performance of the overseas markets, some retailers have started to feel uneasy, mulling over whether to sell all their shares and hold only cash, or continue holding on to their stocks given our positive economic outlook for next year.

It is always difficult to time the stock market. It requires the ability to depart from a normal investment stance when the market offers an unusual opportunity. Hence, to stay on top, investors need to be able to act in contrary to a misguided consensus with a thorough analysis on the risks and rewards.

According to a groundbreaking study in 1986 by Gary P. Brinson, L. Randolph Hood and Gilbert L. Beebower titled Determinants of Portfolio Performance, asset allocation affects more than 90% of portfolio performance. Hence, in view of the uncertainties over the future direction of the stock market, we need to make the appropriate asset allocations to hedge against any risks as a result of big volatility in the stock market.

Assuming investors have only two types of asset classes in one portfolio, i.e. cash and stocks, we would suggest that the asset allocation ratio between cash and stocks should always be 20:80.

If there are any uncertainties over the future market direction, investors should reduce their equity exposure on a staggered basis to 20%. The remaining 80% of the assets will be in cash. However, if the market has dropped to a very low level and the overall market sentiment starts to turn bullish, we will increase our equity exposure to a limit of 80% and maintain 20% in cash.

The main reason for setting an upper limit for stock investments at 80% is the fact that stock price movements are always unpredictable and random. Unless there is a very attractive opportunity, we should always try to maintain a minimum 20% cash in the portfolio.

If more than 80% of our portfolio is invested in equity, any increase in stock prices would be a good opportunity to sell down to our target level of 80% in stocks and 20% cash.

If the stock market touches a new high and starts to show signs of a correction, investors need to consider adjusting down their equity exposure to about 20%.

However, the 20% invested level is with the assumption that the economy remains intact and the outlook positive. We should only start to increase the invested percentage when the market has found a bottom and shows a clearer outlook.

Besides, investors may need to set a target floor level, which is the maximum loss that they can tolerate.

According to Andre F. Perold and William F. Sharpe in their study titled Dynamic Strategies for Asset Allocation, one of the suggested methods is called Constant-Proportion Portfolio Insurance (CPPI).

This method entails setting a floor limit for the inventor’s portfolio based on his tolerance level. If the overall portfolio drops below this floor level, the portfolio will hold only cash and has no exposure in equity. This method is found to be quite useful in a super bear market when the economy slips into recession.

The above simple “80:20” rule is just a basic guide on asset allocation and is not foolproof. The ultimate asset allocation is still dependent on the stock market outlook and investors’ risk tolerance. (This rule is not the same as the Pareto Principle (also known as the 80:20 rule), as the latter states that 80% of the consequences stem from 20% of the causes).

Ooi Kok Hwa is a licensed investment adviser and managing partner of MRR Consulting.

Source : The Star, Wednesday September 12, 2007