My Confession (part1)

I've a confession to make. I am starting to dislike most of the movies out there by Hollywood. The story is crap and it does not help people at all. I've come to this conclusion by observing and observing time and time again the vicious cycle that takes over us in the most subtle of fashion. Little by little without ourselves knowing we are being programmed to be only mediocre in our lives. The programming done by the world has caused us to become less than what we are capable for in life. In the movies, things happen to people. How nice. In life, people make things happen. Subliminally our minds are trained to be lazy and expect the extra ordinary to happen. How many of us will make a difference in life if we keep on staying at home turning on the PC and playing the PlayStation? Will we achieve what we want by the time we're 30? I say it's just wrong, plain wrong.

What we lack are movies to inspire people to change and tell people that to make things happen, we don't wait for it to happen but we move ourselves to achieve the goal. To meet certain type of people, we make sure we hang out at that place more often and by luck or chance, we will meet the person that we want to meet because we are physically there creating chances rather than being at home or at the wrong place where simply the chance to meet the person does not exist at all. It's pure maths and even kids understand. Notice that Kids are always at the cookie section of the supermarket asking their moms and dads to buy them one. Imagine if the Kids are not at the cookies section – would you as the mom and dad would buy them (if there's already a bundle at home unfinished)?

We have to plan and strategize on what we want to achieve and then execute the plans that will help us achieve what we started out with. It's a no brainer – nothing will happen on its own. If we want to be a world class athlete, we need to first start training and train on focus on the skills that we want to be such as endurance and stamina. Only through our actions can we achieve what we want. Yes, saying is easy and executing is rather tough. I've always fancied to play the electric guitar. I've always wanted the thrill to be an entertainer in a crowd. I've never followed through on my dreams. It's been 10 years already since I've said to myself things such as – 'I'm not good enough', 'I've no time', 'I've better things to do'. I never tried at all. I was too lazy to attend the guitar class for 30 mins a week because I told myself I was too lazy. 30 mins a week? Lazy?

Time and objective. Everything takes time and we've got to take it easy on ourselves. While planning we should take time and enjoy the process we take to where we want to be. Savor every moment of it as I believe God will reward those who work hard to get what we want and once we attain the achievement, if we don't savor the process – the end is just as objectiveless as the pursuit. I want to be the company's top performer. I always wanted to be. I want to show people that I can be someone. I worked hard, smart and planned to become the company's top performer because I want to show to people that I can. I achieved the top performer status for 2 years in a row to show people I'm not a one-hit wonder. Notice something wrong there? It's always for someone. I never truly felt happy. I did the things for the wrong reason. I put in 3 years of hard blood and sweat to achieve something that felt meaningless. How I wished I would have taken the 3 years of my life differently. I should enjoy the process of helping people and making a change not for people to recognize that I can do that but rather to sincerely help people and make the world a better place. The objective was right and the motive is wrong. How do I know? In 2008, I'm again the top performer although I worked much lesser and I enjoyed the process to help people and make a difference (I thank God immensely for this). We all must have the right motive and all the rewards of truth and sincerity will pour in unto your lives. I'm much happier at work because I'm no longer out to prove something to people but rather help people out. The movies focus on the successful people – the flashy cars and 100 dollar bills but never the right motive to do so.

What can $ 62B buy?

AIG posted a loss of $62Billion for 2008. The loss is not surprising but the quantum of the loss is a world record number. A billion has 9 zeros and it's a lot of money to lose. If the world had a 6 billion population, each person in the world could receive 10 dollars and AIG still have to give away 2 billion dollars.

With 62 billion dollars, we could buy back all the highways in Malaysia and there would not be any toll. Furthermore, since the contractual negotiations between the highway operators and the Malaysian government is lopsided, the 62 billion dollars or the MYR 210 Billion could save the the 25 million Malaysians unnecessary toll and increase the dispensable income and stimulating the economy. I pay unnecessarily around MYR 150 a month on toll alone and furthermore I pay road tax and my income tax. What a way to save Malaysia, if only AIG would give the money to Malaysians.

What lessons have we learned today? I think it's that we should not make anymore paper money. Money derived from words like derivatives and forex. It's illegal in my point of view because this won't last. The real money have to come from somewhere and it's right now we are seeing the impact - the stimulus plans is the real money and people are profiting from the government funds (indirectly the tax payers). Stop making anymore complex trading devices and profit from greed. I'm not putting in my money anymore in those complex financial tools. I'd now stick back to the tried and tested stock market - using time as the mechanism for dividends and organic growth.

Trends: A global view on what matters in Malaysia

Hard times for SMEs

The Malaysian Institute of Economic Research (MIER) says that an economic slowdown in Malaysia will last six or seven quarters and will considerably dampen domestic consumption.

Added to this, continuing political uncertainty and unstable energy prices are likely to hit SMEs hard in the coming months as their markets are predominantly domestic-oriented.

Furthermore, the widening budgetary deficit is likely to have a long-term impact as larger proportions of gross domestic product are used to address Malaysia's growing national debt. MIER recommends that SMEs facing financial difficulty seek help quickly.

RM142 million boost for SMEs
More SMEs can now benefit from grants and loans offered by the Small and Medium-Sized Industry Development Corporation (Smidec). International Trade and Industry Minister Tan Sri Muhyiddin Yassin said that under the mid-term review of the Ninth Malaysia Plan, Smidec had been allocated an additional RM142.3 million for its grants and loans scheme.

This brings the total funds under Smidec's management to RM605.3million - although the fund remains under-utilised. Muhyiddin added that Smidec had received only 1,636 applications for financial assistance and while it has approved 91.4 per cent of these, it has disbursed only RM103.87 million.

Under a new delivery system, applicants can obtain information on their grant status by sending a SMS to 15888. Also, women-owned businesses will receive fresh attention next year when the revamped SME Central Coordinating Agency, or SME Corp, sets up its Women Entrepreneur Division to help women entrepreneurs take better advantage of the available facilities provided by Ministries and agencies.

Protecting intellecutal property
SMEs should ensure that the intellectual property (IP) of their brands and products are protected, especially in view of the increasing competition for markets in the global economy. Intellectual Property refers to copyright, branding, designs, trademarks and patents, and while SMEs in Malaysia are aware of key IP issues, many are unaware of the various types of IP rights that apply to their brands and product innovations - and are thus excluded from important revenue streams and value creation.

"Malaysia is probably behind some of the other countries in recognising IP but we have to play the IP game or margins will come down," IP Academy Singapore deputy chairman and external director David Llewelyn told StarBiz.

Undersea power cable benefit small-medium cap companies
The RM9 billion undersea power cable connecting the Bakun Hydroelectric Dam in Sarawak (scheduled for completion in 2014) to Peninsular Malaysia will benefit several small to medium capitalisation companies involved in specific parts of the project.

Rohas-Euco Industries Bhd and Eden Enterprise (M) Bhd, for example, will install power transmission towers, while Zecon Engineering Bhd, Naim Cendera Holdings Bhd, Hock Seng Lee Bhd (HSL) and Leader Universal Bhd would benefit from other infrastructure contracts.

The project is composed of three phases. The first will require the installation of transmission lines from Bakun to the Sarawak coast, the second involves the installation of some 700km of undersea cables, which would finally be connected to a power rectifier (to convert alternating current to direct current) in Johor.

One-stop website for business licences
The Government has launched a new website to speed up business licence applications. With the Business Licensing Electronic Support System (Bless), those looking to start a business no longer have to send their applications to the various Ministries and agencies - the one-stop website lets users file the application only once, after which they will be able to track processing and see how much time each department takes to process their parts of the application.

The website also allows for online fee payment and customer feedback to the relevant agencies.
"Starting a business in the manufacturing, construction and hotel sectors involves more than 75 government departments and more than 82 licences, approvals and permits," said Prime Minister Datuk Seri Abdullah Ahmad Badawi when launching Bless on Sept 5.

This will be a thing of the past when Bless becomes fully operational nationwide in 2012. Currently it services only the manufacturing sector in the Klang Valley. For more information log on to www.bless.gov.my.

Families burdened by high prices
More and more families are feeling the burden of inflation (at 8.5 per cent in July) as a result of the recent increases in the cost of living. As the majority of Malaysia's households draw monthly incomes of less than RM3,000, many will be pressed to seek financial help.

Agensi Kaunseling dan Pengurusan Kredit (AKPK), a part of Bank Negara Malaysia, provides sound financial advice to those in need as well as debt management and financial education services. More importantly, AKPK can help those finding themselves cash-strapped restructure housing loans, hire-purchase debts and outstanding credit card balances.

AKPK, formed in 2006, is headquartered in Kuala Lumpur but has nine offices nationwide. Its services are free of charge and the Agency has managed around 8,000 cases involving RM526 milionl so far. For more information, call 1 800 88 2875 or log on to http://www.akpk.org.my.

Turnaround for construction sector?
Rising costs of raw materials and the worsening global economic crisis has hit the construction sector hard this year, but with crude oil and steel prices beginning to return to normal, the worst may be over.

Besides falling prices of materials, the RM53 billion budget allocation for development will likely spur growth in key construction areas, and results could become apparent as early as December 2008, according to analysts.

An additional boon was the recent announcement by the Government that construction contracts would be reviewed in light of the rising costs. This has boosted the confidence of industry players and has helped create some breathing space for those sqeezed by tighter margins.

While many companies are still vulnerable to continuing political instability in the country, as well as international financial uncertainty, the slight respite provided by these developments may take some pressure off them and the industry can look forward to a brighter new year.

Emerging markets: Opportunity, but risk
SMEs stand to gain much from exports to emerging markets such as Cambodia, Vietnam, Myanmar and Laos - all of which have registered steadily growing consumption rates.
Malaysian SME exporters can therefore expect high profit margins and high sales in these markets, but those intending to explore new opportunities should be aware that trading in emerging markets entails some associated risks.

Weak infrastructure, for example, might get in the way of transport and distribution and raise transactional or warehousing costs as well, while some countries have had to endure prolonged periods of political and economic instability - rendering all trade uncertain.

Also, instability in the commodities markets (which are subject to international price fluctuations) sometimes cause buyers in emerging markets to renege on purchase contracts. In all cases, it is best to seek expert advice before making a commitment to trading in these markets.

Halal park for Penang
SMEs should take advantage of the Halal Park that is being planned for Batu Kawan in Penang. The State Government is also developing a halal-based tourism initiative in Balik Pulau.

These measures, said state executive councillor Abdul Malik Kassim, would go some way towards establishing Penang as an international halal hub that could evolve into an entrepot base by its proximity to other halal markets in Thailand and Sumatra.

"The State Government is opening a new office in Penang to promote and build the halal industry in cooperation with the Halal Industry Development Corporation," Malik said, adding that world consumption of halal products has risen dramatically in recent years and that Penang already possessed the facilities and infrastructure necessary to make progress in the market.

SMEs don't know how to get help
Local Chinese daily Nanyang Siang Pau recently found that 80 per cent of SMEs did not know whom to turn to when in financial difficulty. Furthermore, Associated Chinese Chambers of Commerce and Industry president Tan Sri William Cheng said that 20 per cent of SMEs were completely unaware that financial assistance was available to them, and that these enterprises should do their best to leverage on government assistance in view of the rising prices of fuel, food and basic goods.

e-Marketing

How can you expand your business by developing a presence on the Internet? E-marketing is not as difficult or expensive as you may fear.

How to start
Marketing your online business can be challenging: There are simply so many other people out there who already have a "net presence" - and their products might be competing with yours.

It's important to be unique. With so many web businesses out there, many people have the same idea as you. If your product or service is not one-of-a-kind, you can make yourself different with the way your website looks or the way you do business.

The next step is to market yourself effectively. Remember that there is always someone, somewhere, who is ready to buy your product or service - what you need to do is find out where they are and how to reach them. Start by going online to see who your competitors are and study the way they have chosen to market themselves.

Be creative, because this may be what sets you apart from the crowd.

A simple checklist
To clarify your e-marketing ideas, start by asking yourself the following questions:

1. What are the goals of your business?
2. How much are you prepared to spend? (You have a choice of either buying e-marketing software of spending more on having original software developed for you.)
3. How much do you want to spend on advertising? (Cross-advertising between print and online advertising, for example, can maximise your budget.)
4. Is your message easy to understand?
5. Which media provide the best return on investment?
6. How do you measure your results? (There is now software to help you measure the response to your e-marketing on a daily basis.)
7. How will you use these results to help future plans?

How different is e-marketing from traditional marketing? E-marketing costs far less than using traditional media and has the potential to let you reach the world.

E-marketing generally falls into two categories: Ordinary websites and banner ads, and other online applications that lets you advertise your goods or services in a more creative way. Online social networking sites such as Facebook and MySpace can be unusual but useful tools, while other applications such as the video-sharing site YouTube and blogs can also carry your message in a more personal way.

One example of a successful Malaysian entrepreneur who has used the Internet to her great advantage is Fione Tan. Check her website at http://www.fionetan.com. Another example of an effective e-marketing strategy in Malaysia is http://www.citras.com.my, which began as a small spice shop in Brickfields.

Strategies

Most e-marketers employ the 4 C's to create an effective strategy:

1. Content: Good content will attract visitors to your site.
2. Clickstream: Software that analyses what visitors do once they get to your site will help you fine-tune your marketing strategy.
3. Communication: Make sure that you reach out to each visitor to your site, as they may be a potential customer.
4. Conversion: Get the first 3 C's right, and you'll be able to convert every visitor to a client.

In Malaysia there are hundreds of companies like www.webz.com that offer tailor-made internet marketing solutions for businesses large and small. Make sure to research them well and select the company that best matches your needs and your budget.

Training
There are also companies that teach you more about e-business. A comprehensive programme lasts about three months and can cost about RM2,500 for individuals (more for corporations), but you will learn everything from business strategies to hands-on training with new hardware and the latest viral marketing software.

Also, the Small-Medium Industries Development Corporation (SMIDEC) offers grants of up to RM10,000 to help you integrate your business into the world of e-commerce. Go to http://www.smidec.gov.my for more information.

But before jump into e-business, however, you need to fully understand the following definitions:

1. Pay Per click: An advertising model where advertisers pay website owners only when website visitors click on an advertisement linked to the advertiser's website. (See Affiliate marketing.)
2. Search Engine: An online application designed to help users search for information. Popular search engines include www.google.com and www.yahoo.com
3. Viral marketing: A marketing technique that utilises pre-existing social networks. Similar to traditional multi-level marketing, viral marketing can be effective when combined with online networking applications like www.facebook.com
4. Web development: A broad term that applies generally to developing a website, or other internet application. However, it is often used by web professions to refer strictly to programming.
5. Web design: The process of conceptualising, planning and delivering content and information via a website or an Internet application.
6. Email Marketing: Direct marketing via email instead of traditional mail. Email marketing provides access to a wide range of potential customers at a fraction of the cost of traditional mail.
7. Affiliate marketing: - A marketing campaign where another website owner places an advertisement on your websites. (See Pay per click.)
   

The future of web-based/online/e-marketing
The Internet changes rapidly each day. New trends constantly emerge that will have a great impact on the future of e-business and online marketing. Called "Web 2.0" these trends describe an increased online collaboration and information-sharing. Web 2.0 plays a pivotal role in key e-business concepts like viral marketing, and has driven the popularity of social networking applications such as Facebook and You Tube.

For more information, see http://www.mikestopforth.com/2006/08/05/what-is-web-20/

Dissecting Malaysia's Budget 2009

On the whole it appears that while Budget 2009 offers some relief for SMEs, other developments related to tax and reinvestment allowances might cause them to tighten their belts.

SMEs that are unlisted subsidiaries of listed firms will lose tax breaks afforded to other SMEs: The previous tax regime had encouraged better financial positions for these SMEs (besides making more disposal income available to them), but under new provisions under Budget 2009, SMEs cannot be under the control of another company with paid-up capital of more than RM2.5 million.

Therefore, any SME with 50 per cent of its ordinary share ownership in the hands of a public-listed company will automatically have to pay full corporate tax - even if the SME has a chargeable income of less than RM500, 000 a year. The redefinition also means that SME subsidiaries may not be eligible for capital allowances for small-value assets that are available to other SMEs.

Budget 2009 also introduced a proposal for "Improvement for Reinvestment Allowance". This will review the current practice of giving reinvestment allowances (RAs) to companies in the manufacturing, processing and (some) agricultural industries.

RAs allow companies to set off 60 per cent to 100 per cent of their qualifying capital expenditure against statutory income for 15 consecutive years - translating basically into a large tax break.

Under the proposed redefinitions in Budget 2009, however, processing and manufacturing activities that don't require special skills or machinery and equipment will no longer be eligible for RAs.

This development is likely to hit SMEs hard if they are heavily engaged in these areas - and the extension of the moratorium on RAs to 36 months is likely to render a number of companies regionally uncompetitive. (Previously, RAs could not be claimed in the first 12 months of a company' operations as these capital investments were defined as startup - rather than reinvestment - costs. The extension of this period to 36 months will likely force companies to defer their reinvestment plans to after this period, and as a result of the delay they could lose out on foreign investments to competitors in neighbouring countries.)
The Budget 2009 section on the RA also contains a proposal to extend the ownership period of qualifying assets from two to five years, meaning that if you dispose of these assets, any RA you claimed on them will be subject to a clawback (i.e. the allowances must be reverted to the Government).

This is also likely to have an impact on plans to replace existing equipment that has worn down or has been made obsolete during its five years of service: If RAs were granted on any of these assets previously, the clawback will discourage companies from disposing of these assets in order to fund equipment replacements or upgrades.

On the plus side, Budget 2009 offers some new incentives and the maintenance of existing loans and grants for SMEs (see sidebars), but generally financial planners recommend prudence, especially in view of worsening global economic conditions and the yet-unfelt impact of the US subprime crisis.

SMEs should therefore work towards managing the pressures of rising costs through switching to cheaper imports or by sourcing all materials domestically. They can also consider outsourcing any of their non-core activities, form syndicates to pool resources when purchasing raw materials, or seek assistance under one of the Small and Medium Industries Development Corporation's (SMIDEC) funding and financial assistance programmes.

At the same time, SMEs should strive as best they can to diversify (or begin new operations) into key sectors promoted under Budget 2009 (such as tourism, halal food products, ICT and biotechnology). They should also consider expanding into the various support services that are currently booming, such as energy-efficient products, Islamic financial services, education and training.

Financial analysts agree that hard times are here, and while the Malaysian economy has proven resilient in the past, the rising costs of energy and related sectors (such as transportation) are already taking their toll on domestic and regional consumption.

With the US subprime and credit/banking crisis and the recent failure of many investment banks in the US, it is possible that worse is yet to come.

Budget 2009: New incentives for SMEs

· New companies to enjoy tax deductions on the cost of recruiting workers at job fairs and payments to agents before the start of operations.

· Corporate group losses that can be offset have been raised from 50 per cent to 70 per cent.

· Exemptions offered on import duty and sales tax for photovoltaic solar system equipment and related goods (such as high-efficiency motors and insulation material).

· Sales tax exemptions offered for Malaysian-made solar heating systems and energy efficient consumer goods such as refrigerators, air-conditioning units, fans and television sets.

· Franchise importers of new hybrid completely-build-up cars of 2,000cc engine capacity or below will enjoy 100 per cent import duty and 50 per cent excise duty exemptions.

· 100 per cent tax exemption or 100 per cent investment tax allowance for five years, for new investments by four- and five-star hotel operators in Sabah and Sarawak.

· A RM50 million fund for conservation works at heritage sites in Penang and Malacca.

· A RM2 billion Bank Pembangunan fund for purchase of ships and upgrade of shipyards.


Budget 2009: Capital allowances and tax relief for SMEs

· A 100 per cent capital allowance for all plant and machinery bought in the years of assessment 2009-2010.

· A full capital allowance for assets valued at RM1,000 or below, with no restrictions on the total value of these assets.

· A full capital allowance for the purchase of IT and communications equipment (such as faxes, etc) for the years of assessment 2009-2013.

· Two new Bank Negara funds (totalling RM1.2 billion) for SMEs to draw on when modernising operations, upgrading machines and purchasing new equipment.

· SMEs will continue to be exempt from the submission of tax estimates and can opt to pay tax in installments for the first two years of assessment.

· Likewise, income tax on the first RM500, 000 continues to stand at the reduced rate of 20 per cent, while the remainder will be charged at existing corporate rates (26 per cent for year of assessment 2008, and 25 per cent for 2009 and after).

Existing SME grants and loans

Under existing provisions, SMEs are eligible for the following:

1. Fifty per cent of the cost of an approved project will be borne by the Government (and the remainder by the applicant). Separate grants exist to meet different funding requirements, and maximum grants per application are thus:
a. RM100,000
b. RM150,000
c. RM200,000
d. RM250,000
e. RM500,000

2. Matching grants where 80 per cent of training costs are borne by the Government (with the remainder by the applicant) for courses in sales performance, customer service and marketing.

3. Soft loans for factory relocation (min RM50,000 - max RM1.5 million).

4. Soft loans for SME operations (min RM50,000, RM1 million for financing fixed assets, RM1 million for working capital financing, RM5 million for approved project financing).

5. Soft loans to promote ICT adoption (min RM20,000 - max RM500,000 for the purchase or upgrading of hardware, training, software, points of sale terminals, inventory management systems and the like).

Correct Wording for Resumes

When writing a resume, it's advised to follow these simple pointers:

1. Be precise as possible. The hiring manager has only 1 minute to glance through your resume and you need to make an immediate impact.
2. Use some industry jargon. Since the hiring manager has 1 minute to glance through your resume, using keywords and acronyms will impress hiring manager to consider your for an interview.
3. Highlight the most recent achievement first & the most important first. This is to get the attention of the reader.
4. Have some chronological format - it's easier for people to understand and get a clearer picture of your contribution and career growth.
5. Use simple language - just use the basic words that will make your reader understand your point using the least amount of words. E.g. instead of saying 'my sales team have achieved 100% of the yearly sales target annually since 2005' instead use 'met sales target 100% for 3 years in a row', it's less confusing and clear.
6. Less is more - don't over exaggerate and overuse the high impact words. Let the key words themselves make the impact strong and scarce.
   

Obamania Hits KL

No, President Obama is not coming to KL but Roger Fisk is. Wait a minute. Who's Fisk? Fisk is apparently Obama's campaign adviser.

It'll be interesting to listen how Fisk used his magic combined with Obama's charm and charisma to kick start his winning campaign. The session will focus on ideas and thoughts put in during the recent Barrack Obama Presidential Campaign.

Click the banner below to register if you're interested. See you guys there.