Sunday 9 January 2011

Is it time to trade or invest when the market is at an all-time high?

Is it time to trade or invest when the market is at an all-time high?
By FINTAN NG

IS this the time to enter the equity markets or is this the time to get out? This is the question that is always asked when equity markets are on a roll or when markets are rallying.
For the cautious types, this is the time to sell or to wait but risk-takers and optimists feel that markets can still go higher despite the fact that much of the performance of stock markets in emerging Asia, analysts point out, is largely due to the liquidity sloshing around in the system chasing higher returns that may not necessarily be based on fundamentals.
Cooler heads will point to the current disconnect between the macroeconomic outlook and the equity markets.
Long-term and cautious investors question how long will the “party” brought on by the funds entering emerging market equities will last.
Already World Bank managing director Sri Mulyani Indrawati has warned that quantitative easing may potentially create bubbles in assets such as equities, currencies and property.
She says Asian governments may need to turn to capital controls although these curbs should be targeted, temporary and tailored to address specific problems.
Morgan Stanley Research analyst Gerard Minack says in a Nov 5 report that markets are disconnecting from the macroeconomic fundamentals and the US Federal Reserve’s RM600bil quantitative easing programme may not be enough to significantly reduce recession risk, which is concentrated in the next couple of quarters.
“The other issue, however, is how long the markets can run on the quantitative easing without confirmation from macro data that things are improving,” he asks.
Minack says quantitative easing has pushed developed-world equities through the ranges seen over the past year and will not be able to defy the macro outlook for long.
“Before I turn cautious, however, I want to see that risk assets are starting to respond in a more normal fashion to incoming macro news,” he says, adding that the reaction to news have been reverse to what usually happens.
“It’ll be important when markets return to a good-news-is-good/bad-is-bad behavior,” Minack notes.
He says although the rest of the world outside the developed economies look fine with purchasing manager sentiment looking solid and with little risk of another global recession, there are hints of slowdown in Asia.
“For countries that produce monthly purchasing manager indices (PMIs), the four weakest – all below 50 – are in Asia: South Korea, Japan, Taiwan and Australia,” Minack says, although China, India and Indonesia remain strong. A reading below 50 for the PMI gauge denotes a contraction.
Although the pace of growth has slowed in the Asian emerging markets and will continue to slow at least into the first-half of 2011, stock markets have continued to surge.
The FBM KLCI, for example, has risen nearly 20% from a year ago and is now at historical highs.
If the market always anticipates the economy, than this time around investors may have gotten it wrong as growth next year, at least by Government estimates, will be lower at 6% compared to the expected 7% for 2010.
However, stock-market movements cannot rely on the amount of liquidity alone going forward, says Malaysian Rating Corp Bhd chief economist Nor Zahidi Alias in an email reply to StarBizweek.
“Fundamental factors will have to support the overall trend. Should there be a moderation in global economic growth following the persistent weaknesses in major economies, regional markets (including Malaysia) will experience some degree of correction,” he points out.
Nor Zahidi says Asian economies, despite seeing more intra-regional trade these days, still have to rely on the G3 (United States, European Union and Japan) economies as the final destinations of their products.
He says right now, the rising stock market hints at the trend of economic growth in the next three to six months and is reflective of investors’ confidence in efforts by the Government over the past year to enhance efficiency thruogh the Government Transformation Programme and the Economic Transformation Programme.
“These have, to some extent, given positive vibes to foreign investors who, in turn, have increased their exposure to the Malaysian market,” Nor Zahidi says.
He adds that 0ther positive attributes of the Malaysian economy include the relatively stable growth prospects in the next few years following an expected steady improvement in private investment as well as resilient private consumption.
Nor Zahidi says among the signs of improving investor sentiment was the 9.4% surge in total investment in the first-half of the year compared to same period last year.
“The bond market is accordingly benefiting from investors who prefer debt instruments in Asian economies rather than those of the developed countries. This is reflected in the foreign holdings of Malaysian Government Securities which surged to 26.8% in September,” he adds.
Meanwhile, the World Bank which recently released this year’s Malaysia Economic Monitor, expects the country to achieve growth of 4.8% next year compared to 7.4% this year.
In the developed economies, despite risks of another downturn and sovereign debt concerns, markets have also risen with the S&P 500 and the Stoxx Europe 600 Index at its highest since September 2008.
For those who say that markets, at least in this part of the world, have some way to go before tanking, the arguments are that fundamentals such as positive demographics, youthful populations, urbanisation and rising middle classes will continue to drive domestic demand.
This is the view of HwangDBS Investment Management Bhd chief investment officer David Ng, who says conditions are ripe for the local bourse to experience a bullrun similar to what happened in the nineties.
Furthermore, these optimists argue that opportunities abound in the emerging markets of Asia, where governments have embarked on large infrastructure projects to boost their economies and ensure long-term growth.
They counter that as the outlook is still gloomy and with low household consumption in the developed economies, where else better to place their money than in the emerging economies?
Their views are backed by the weak US dollar, brought about by low interest rates and now facing more headwinds from the Fed’s programme to purchase US Treasury bills over an 8-month period.
The jobs outlook seems to be in favour of these group of investors too as unemployment in the United States stands at 9.6% while in the 16-member European Union, it now stands at 10.1%.
The data further supports these optimists, who point to the fact that deep public-sector spending cuts in the European Union over the next few years may crimp demand.
fr:biz.thestar.com.my/news/story.asp?file=/2010/11/13/business/7397848&sec=business

Malaysian market at record high – so what is the next thing?

Malaysian market at record high – so what is the next thing?
Making a Point by Jagdev Singh Sidhu
WHAT next? That might be a common question asked after the FTSE Bursa Malaysia KL Composite Index hit a new record high this week and therefore heads into uncharted territory.
That question is difficult to answer because unlike the previous rallies in 1993 and in 2008, the run-up this time around has been surprisingly orderly.
Volume, often an indicator of fervent euphoria, has remained sane and while the index has set a record, trading activity on Bursa Malaysia is nowhere close to previous high levels. This would suggest there is still more room to go.
Although the rise this time has less to do with direct retail interest as it did in the past, the professionalism in investing these days – where more Malaysians are putting their hard-earned money in the hands of professional managers to invest – is also a good sign.
It’s often joked that when retail interest shoots up and everybody becomes a tipster, it’s time to sell. Also a signal would be syndicate activity returning to the market in a big way.
That, to my knowledge, is nowhere close to the situation in previous rallies and surely is a contrarian indicator worth following.
Another fundamental backing to the rise this time would be borne by the efforts ongoing to revitalise the economy, especially the private sector and the investments it is expected to pour into the country.
Some may argue that economic growth might have some correlation to corporate earnings but the balance sheet and cash generation capability of most companies are far better now then in the past.
Maybe it’s also the better health and performance of the largest companies in the country where more focus and strict adherence to key performance indicators now then before have led to better financial performance and hence their attraction.
Furthermore, as more companies in Malaysia venture abroad and with the large commodity companies riding on skyrocketing crude palm oil (CPO) prices, the story at home might not swing investor focus as much as it did in the past.
But the surge in the local stock market also has to do with the amount of money that is swimming around globally, hunting for the best returns they can get.
Between the United States printing money from its quantitative easing and the still super-low interest rates globally, cash around the world has been hunting for returns.
They have so far got it from commodities. Among this group, CPO is rising and rubber has hit an all-time high.
And in emerging Asia, they might have also found an answer for now by buying the currencies of Asian economies.
The flood of money into Asian currencies has led to reciprocal rises in the stock markets in the Philippines and Jakarta, which have in recent months peaked at their all-time highs, suggesting that money is trying to capitalise on growth in equities as well as currencies. Markets in Thailand and Singapore are also rising strongly.
To pour more cold water on the rally, the market is said to be trading at high price to earnings ratio and economically, the horizon globally is less rosy.
Malaysia’s economic growth is forecast to fall next year to between 5% and 6% from a projected 7% this year.
Is 2010 a replica of the 1993 bull run? I don’t think so although most would love the ride, not the end.
The situation this time is vastly different but any time a market hits an all-time high, some caution should come into play. A market high does not happen often.
·Deputy news editor Jagdev Singh Sidhu is cautiously optimistic that the rally this time would not be accompanied by companies with poor fundamentals promising a pot of gold for unsuspecting punters
fr:biz.thestar.com.my/news/story.asp?file=/2010/11/11/business/7405348&sec=business

Mini Super bull run in the making before Chinese New Year?

Friday, November 5, 2010
Mini Super bull run in the making before Chinese New Year ?

Comparing the circumstances back in 1993 against the current situation.

In the early 1990s, despite slowdown in the global economy, as the third largest economy in South-East Asia, after Indonesia and Thailand, Malaysia was supported by relatively strong macroeconomic fundamentals and resilient financial system. With the real GDP growing at 9.9%, ringgit appreciation, strong export growth and the Government’s measures to hold inflation low at 3.6%, the local stock market became an attractive alternative to foreign investors.

In 1991, Tun Dr Mahathir Mohamad unveiled the philosophy of “Malaysia Incorporated” which was a development strategy for Malaysia to achieve a developed nation by 2020.


Before 1993
Foreign investment in Malaysia was - long-term direct investment in manufacturing sector.
However, massive influx of foreign capital inflow helped fuel the super bull-run in 1993.
Within the year, the market increased by 98% to reach an all-time high of 1,275.3 points and foreign investors’ participation accounted for 15% of total trading value of our local bourse. Lured many retailers into the market

1993
Government planned several mega projects, such as
KL International Airport (RM8bil), Johor-Singapore Second Link (RM1.6bil) and Kuala Lumpur Light Rail Transit (RM1.1bil).
Government planning on privatising its own corporations, such as Petronas, KTM and Pos Malaysia had also driven these counters into prime trading targets.
Besides, the ease of accessing bank credit by investors also contributed to the market rally.
High percentage of loans was channelled to broad property sector as well as the purchase of securities.

1994.
Bank Negara introduced a number of selective capital controls in early 1994 to stabilise the financial system,

2010
Economic Transformation Programme (ETP) with the aim to boost our gross national income (GNI) to US$523bil in 2020 from US$188bil in 2009. GDP growth is anticipated to increase by 6% this year.

September 2010 saw net inflow of foreign funds again in our equity market. Over the past few weeks, the average stock market daily volume had been hovering above one billion shares per day.

According to Andrew Sheng in his book titled From Asian To Global Financial Crisis, there were two main indicators to irrational exuberance during the super bull run in 1993. The first was the amah (domestic maid) syndrome. We need to be careful when amahs got excited about the stock market. This was because they did not know what they were buying and would always be the last to sell. The second indicator was when businessmen began to speculate stocks in the stock market. This was because they might neglect their businesses and use some of their cash for speculation.

Comparing our current market situation with the 1993 bull run, there are certain similarities that we see, such as strong economic growth, ringgit appreciation, inflow of foreign capital and ease of credit.
Local retailer participation may be the last push factor towards the bull run.

( source : The star )


http://acnews101.blogspot.com/2010/11/mini-super-bull-run-in-making-before.html


----



Is there a super bull run in 2010?
Personal Investing – By Ooi Kok Hwa

Although the economic situation now compares with that of 1993, the last push must come from local retail investors

THE recent rally in our local bourse has prompted many seasoned investors, especially those who experienced the super bull run in 1993, to wonder whether the current rally is about to turn into a real bull run. Of course, nobody can tell for sure what will happen next, but we certainly can do some homework, comparing the circumstances back in 1993 against the current situation.

In 1991, Tun Dr Mahathir Mohamad unveiled the philosophy of “Malaysia Incorporated” which was a development strategy for Malaysia to achieve a developed nation by 2020. In the early 1990s, despite slowdown in the global economy, as the third largest economy in South-East Asia, after Indonesia and Thailand, Malaysia was supported by relatively strong macroeconomic fundamentals and resilient financial system. With the real GDP growing at 9.9%, ringgit appreciation, strong export growth and the Government’s measures to hold inflation low at 3.6%, the local stock market became an attractive alternative to foreign investors.

Before 1993, foreign investment in Malaysia was mainly dominated by long-term direct investment in the manufacturing sector. However, as a result of measures taken to develop our domestic equity market, coupled with the strong economic backdrop, we saw a massive influx of foreign capital inflow, which helped fuel the super bull-run in 1993. Within the year, the market increased by 98% to reach an all-time high of 1,275.3 points and foreign investors’ participation accounted for 15% of total trading value of our local bourse. This had also driven the market into a highly speculative one, which lured many retailers into the market, thinking of making fast and easy money.

With the presence of new and unfamiliar players, the market became a huge “casino”. Retail investors bought into stocks based on rumours rather than company fundamentals. Among the hottest topics during that time were the awards of government mega projects, privatisation candidates, sector play and regular news on upward revision of corporate earnings. Examples for the highly speculative stocks were Ekran, Ayer Molek Rubber Co, Berjuntai Tin Dredging and Kramat Tin Dredging.

In 1993, with the economy booming, the Government planned several mega projects, including the KL International Airport (RM8bil), Johor-Singapore Second Link (RM1.6bil) and Kuala Lumpur Light Rail Transit (RM1.1bil). The news of contract awarding immediately sent the market into speculative mood on those potential candidates. Similarly, the news of the Government planning on privatising some of the its own corporations, such as Petronas, KTM and Pos Malaysia had also driven these counters into prime trading targets.

Besides, the ease of accessing bank credit by investors also contributed to the market rally. We noticed that a high percentage of loans was channelled to broad property sector as well as the purchase of securities.

As a result of massive inflow of foreign funds and the super bull run in stock market, Bank Negara introduced a number of selective capital controls in early 1994 to stabilise the financial system,

Recently, our Prime Minister Datuk Seri Najib Tun Razak unveiled the Economic Transformation Programme (ETP) with the aim to boost our gross national income (GNI) to US$523bil in 2020 from US$188bil in 2009. The programme is to attract investment not only from the Government, but also (more importantly) from domestic direct investment as well as foreign direct investment. In view of strong economic growth, our GDP growth is anticipated to increase by 6% this year.

In September, we notice that there was a net inflow of foreign funds again in our equity market. Over the past few weeks, the average stock market daily volume had been hovering above one billion shares per day. Almost every day, the top 10 highly traded stocks were those speculative stocks with poor fundamentals. In addition, we noticed that some retail investors had started to get excited again in the stock market.

According to Andrew Sheng in his book titled From Asian To Global Financial Crisis, there were two main indicators to irrational exuberance during the super bull run in 1993. The first was the amah (domestic maid) syndrome. We need to be careful when amahs got excited about the stock market. This was because they did not know what they were buying and would always be the last to sell. The second indicator was when businessmen began to speculate stocks in the stock market. This was because they might neglect their businesses and use some of their cash for speculation.
Comparing our current market situation with the 1993 bull run, there are certain similarities that we see, such as strong economic growth, ringgit appreciation, inflow of foreign capital and ease of credit. However, our local retailer participation is yet to get boiling, which may be the last push factor towards the bull run. Hence, once the participation of the local investors starts to get heated up, together with more inflow of foreign fund, that may be the signs of the market heading for a ‘mini’ super bull run.

● Ooi Kok Hwa is an investment adviser and managing partner of MRR Consulting.
fr:biz.thestar.com.my/news/story.asp?file=/2010/11/3/business/7348793&sec=business

Saturday 8 January 2011

Ajinomoto (Malaysia) Berhad

Market Watch
Recent Financial Results

Announcement
Date Financial Yr. End Qtr Period End Revenue   Profit/Lost EPS Amended
RM '000

23-Nov-10 31-Mar-11 2 30-Sep-10 77,686 5,378 8.85 -
27-Aug-10 31-Mar-11 1 30-Jun-10 82,127 8,630 14.19 -
25-May-10 31-Mar-10 4 31-Mar-10 71,877 1,482 2.44 -
10-Feb-10 31-Mar-10 3 31-Dec-09 72,661 9,525 15.67 -

Pr 4.08 (7.1.2011)
Outstanding shares 60.80m
Market cap 248.064m

ttm-EPS 41.15 sen
ttm-PE 9.91
DY % 4.41

Past Years Data
FYE

March 04 Revenue 164.126m Earnings 12.059m EPS 19.83 sen Div 9.0 sen
March 05 Revenue 166.869m Earnings 12.519m EPS 20.59 sen Div 9.00 sen
March 06  Revenue 170.59m Earnings  6.31m  EPS 9.9 sen Div 7.9 sen

March 07  Revenue 190.63m Earnings 14.99m EPS 24.7 sen Div 8.9 sen
March 08  Revenue 215.46m Earnings 20.94 EPS 34.4 sen Div 12.9 sen
March 09 Revenue 243.84m Earnings 19.07m EPS 31.2 sen Div 15.0 sen
March 10 Revenue 284.62m Earnings 23.94m EPS 36.6 sen Div 18 sen

H1 2011 Revenue 159.813 Earnings 14.008m EPS 23.04 sen






Ajinomoto (Malaysia) Berhad
Business Description:
Ajinomoto (Malaysia) Berhad is engaged in the manufacturing and selling of monosodium glutamate and other related products.

Its retail products include AJI-NO-MOTO MSG, TUMIX stock seasoning powder, VONO cup soup, SERI-AJI ready to cook seasoning powder, AJI-SHIO flavored pepper, black pepper and iodized salt, PAL SWEET low calorie sweetener, Slim Up and AJI MIX seasoning.

Its other industrial products include HVP, AJI-AROMA, AJI-PLUS and AJIMATE.

The Company markets its products in Malaysia, the Middle East and in other Asian countries.

Fair Valuation of Berkshire Hathaway

http://www.tilsonfunds.com/BRK.pdf
  • Cheap stock: 75-cent dollar, giving no value to recent investments and immense optionality
  • Extremely safe: huge cash and other assets provide downside protection
  • Strong earnings report should act as a near-term catalys

Guan Chong expects to raise RM120mil

Saturday January 8, 2011

Guan Chong expects to raise RM120mil

KUALA LUMPUR: Guan Chong Bhd (GCB) expects to raise up to RM120mil from through its corporate exercise of issuing RM2 for 60 million free warrants.

“Based on the exercise price of the warrants of RM2 per new GCB share, the company stands to potentially raise up to RM120mil during the tenure of the warrants upon full exercise of the warrants by the holders of the warrants.

“Such proceeds will be utilised for the day-to-day working capital requirements of the GCB group,” it told Bursa Malaysia yesterday.

The company said that it had fixed the exercise price for the warrants at RM2, which was 9.29% or 17 sen over the theoretical ex-price after the proposed bonus issue of RM1.83 per share, based on the five-day volume weighted average price of RM2.44.

The 60 million warrants were issued on the basis of one free warrant for every four existing shares held on the same entitlement date for the proposed bonus issue.

The corporate exercise also involved the proposed bonus issue of 80 million new shares of 25 sen on a one-for-three basis.

http://biz.thestar.com.my/news/story.asp?file=/2011/1/8/business/7758406&sec=business

Friday 7 January 2011

Variety of market-shaking bubbles might inflate in 2011

7 JAN, 2011, 12.27PM IST,BLOOMBERG
Variety of market-shaking bubbles might inflate in 2011

TOKYO: Welcome to the year of the bubble. It may seem an odd assertion at a time when many key economies are in, or on the verge of, recession. Yet near-zero interest rates in Washington, Tokyo and Frankfurt have a way of wreaking havoc with markets and human psychology. It's not a reach to say we have a bubble in bubbles. A variety of market-shaking bubbles might inflate before our eyes - some in asset markets, others in flawed perceptions. Here are eight.

Hot money: It's terrific the MSCI AC Asia Pacific Index jumped 14% last year, outpacing MSCI's broader indexes. It would be better, though, if the gains had more to do with fundamentals and less with ultra-low rates. The Bank of Japan's largess has long seeped overseas to boost stock, bond and property prices near and far. The yen-carry trade - borrowing cheaply in yen and using the funds for riskier bets overseas - was the forerunner of a similar dollar trade. Federal Reserve policies sent tidal waves of liquidity toward Asia in 2010. It could reach disastrous proportions, leaving a trail of ruin in its wake.

Decoupling theory: The bubble here is the unsustainable belief that Asia can grow rapidly no matter what happens among the biggest economies. Don't bet on it. It's great China is growing 9.6% and India at 8.9%. But, nothing would serve Asia better than a rebound in growth in the US , euro zone, Japan and the UK, which combined make up $34 trillion in annual output. Developing economies may live for a couple of years without the majors. Good luck keeping up that performance in the years ahead.

Food prices: A January 3 Times of India headline raised a question in many minds: "Can government do nothing legally to check prices?" The answer is: not much. The UN Food and Agriculture Organization predicts the global cost of importing foodstuffs totalled $1.026 trillion in 2010, compared with $893 billion in 2009. Imbalances in supply and demand and regional trade rigidities will accelerate the trend, swamping developing nations with the most basic of problems: Filling the bellies of those powering their economic rise.

Income inequality: The trajectory of everyday prices is a fast-developing setback to Asia's efforts to narrow its gaping rich-poor divide. Rising costs for cooking-oil and rice may mean little to a Goldman Sachs Group Inc staffer. To a family living on $3 a day and already spending two-thirds of income on food, they are devastating. Rising wealth disparities could foreshadow a year of tensions, as failed harvests and inflation cause famines, riots, hoarding and trade wars worldwide. The bubble here would be one in human suffering.

Wacky weather: A few months ago, drought was imperiling Australia's economic outlook. Today floods that some characterise as "biblical" have economists calculating the implications for commodity prices. Forget temperatures and focus on the increasing frequency of freaky weather patterns from Miami to Mumbai.

Currency reserves: Why any economy needs $2.7 trillion of them is beyond me. It's not just China that is trapped into adding to its currency stockpile to keep its existing holdings from losing value. Japan has more than $1 trillion, while Taiwan, South Korea, Hong Kong, Singapore and Thailand have a combined $1.3 trillion. Talk about an unproductive use of wealth - and a risk that's growing by the day with no easy fix in sight.

Geopolitical risks: Leave it to Kim Jong-Il to remind investors that the biggest surprises won't be from economic or corporate reports, but rogue regimes. Expect a bull market in territorial disputes. Faced with growing uncertainty, governments are desperate to placate the masses. The desire to unify the home population may lead to rifts between neighbours. Those seeking shelter from these brewing storms explains why gold is almost $1,400 an ounce.

Group of 20: Any optimism that European officials can avert disaster might be seen as irrational. The same goes for the belief that China can grow 10% annually forever or that Japan's leaders can defeat deflation. The real perceptions bubble is that a disparate grouping of 20 nations can tame out-of-whack markets and imbalances that were decades in the making. The year ahead might turn any, or all, of these accepted wisdoms on their head.

http://economictimes.indiatimes.com/markets/analysis/variety-of-market-shaking-bubbles-might-inflate-in-2011/articleshow/7232817.cms

Thursday 6 January 2011

Reasonableness and Unreasonableness

An indictment against the Christian community

My friend Jackson Ng has raised a very rational and legitimate point in his comment in the Malaysia Chronicle on the matter of the Najib aides asking the organisers of the Christmas Eve gathering at the St John’s Cathedral in Kuala Lumpur to remove the crucifixes, and the banning of singing hymns.
Jackson asked why didn't the church organizers object to such unreasonable instructions?
Although he is not a Christian, Jackson said he decided to write on the issue because it is a matter concerned with the universal acceptance of basic principles and the rights of mankind.
He has rightly pointed out that the removal of crucifixes and the banning of hymn-singing at St John’s Cathedral constitute a violation of religious freedom guaranteed under Article 3(1) of the Federal Constitution.
According to news reports, Datuk Seri Najib Razak’s aides had ordered the removal, claiming that the crucifixes would be offensive to the prime minister.
Jackson said he was not only upset with the instruction given by the Najib aides, but more angry with the church leaders for their failure to stand up and speak out on the matter.
"Are they not God-fearing Christians, just like Muslims are also God-fearing? Why then did the organisers remove the sacred crucifixes? Isn’t it logical to deduce that they are not God-fearing beings but Satan-fearing arse-licking politicians who claim to be Christians? God-fearing Christians would have defended the crucifixes, Jesus Christ and God. Do they value the presence of the PM more than God?" Jackson asked.
"As it was, the organisers, for reasons best known to them, felt the presence of the PM was more important than their Jesus Christ and God. To them, it was more important for the PM to grace the function and, therefore, abandon Jesus Christ and their God. Disgraceful and shameful are two words best to describe the organisers," he said.
"God-fearing Christians must therefore start defending Jesus Christ and their God by throwing out the organisers from their holy house of worship. If not, they too are condoning what they did," Jackson said.
Strong words, indeed, but Jackson certainly is right to lambast the church leaders for being spineless cowards in the face of such violation of human, civil and constitutional rights.
Jackson's denunciation of the action or lack of it of the Christian leaders is perhaps the first public indictment against the Christian community in Malaysia, as far as I know. And it is not without justification, and surely, appropriate too.
One of the major reasons that the fundamental human, civil and constitutional rights are slowly being eroded is the failure of so-called community and religious leaders to stand firm and steadfast to preserve, protect and promote these rights.
I am very familiar with the Malaysian Christian community, having been a Christian for nearly 45 years and actively involved in teaching and preaching for nearly 40. Hence, I think I am well-qualified to make observation and comment on the Church in Malaysia.
There are basically three types of Christians in Malaysia.
The first common type is the introvert conservatives, who are generally shy, reticent, and typically individualistic self-centered persons, predominantly concerned with their own thoughts and feelings, with nary a care for things outside the walls of their church.
These traditionally orthodox Christians are always concerned about their own "spiritual growth", and are generally timid and harmless. They live their lives in the familiar safe comfort zone of their church community, and speak a sort of churchy language, often convicing themselves that they will be okay if they go to church regularly, give often to the church and their pastor, pray always in whatever situation they are in, and shun, evade and eschew controversial matters, especially political ones. They dress decently and avoid elaborate and spectacular extravagant and lavish display of wealth and luxury. They made good church members and citizens as they never ask questions or challenge any rule, precept or instruction, no matter how excessive, unreasonable or even oppressive the rules and instructions are. They are generally afraid of anything official, especially the government and its enforcement agencies. Mention the ISA or May 13, and they will secrete cold sweat and clinched in fear.
Their pastors and church leaders love these church members, because they are literally under their complete control, and want them to remain in their innocent gullible situation. Hence, there is no real teaching of doctrines, biblical and theological matters, and on issues concerned with life, thoughts and faith in relation to the world outside the church. Actually, the pastors and church leaders themselves are as biblically and theologically disabled as their church members. Hence, they play church happily, and never growing beyond their religious pubescence. The church is their safe abode, and anything outside the church is none of their business.
The pastors and leaders of such churches generally avoid speaking up on issues, even if the issues affect their churches or their rights to religious freedom. They will not sign petitions to seek release of political and religious freedom fighters, and will not want to be part of the movement to struggle for the right to use the word "Allah" in the worship, teaching, preaching and publications of the Church. We have many of such Christians in the Malaysian Christian community.
The second type of Christians are the so-called Health and Wealth charismatics, whose main focus in their life, thoughts and faith is material wealth and luxurious living. Their church worship services are no difference from that of an entertainment disco joint, with whirling colourful psychedelic lights, with an intense, vivid and swirling abstract loud music and repeated chantings masquerading as worship songs that produce religious hallucinations and apparent expansion of spiritual consciousness.
Most of the worshippers jump, wave, swing, sway and undulated to the thumping rhythm of the deafening music, and wail loudly, with some making animal sounds. There is no solid biblical exposition, only entertaining motivation talks masquerading as sermons. A good preacher is one who tells a lot of stories and joke, and make the congregation laugh. No Bible message, just a feel good prosperity gospel.
Such churches are usually housed in mega complex with attractive facilities like gyms and swimming pools to attract members of other churches to their fold. There is no growth by evangelism or conversion, only the seduction of church members from other churches.
My personal observation is that most of these people are no different from those under the influence of psychedelic drugs, with their mental intuitive capability almost unilaterally being under the complete control of an irrational runaway emotion. These people are certainly brain-washed into giving large sums of money to their churches and pastors. Most of the pastors of such churches receive big fat pay packets, driving top brand cars, and live in luxury houses in upmarket residential areas. They go on church-sponsored overseas holiday masquerading as "mission trip" two or three times a year.
Obviously, the pastors, leaders and members from such churches couldn't care about what is happening in the real world outside their churches. They are in a world of their own. For the members, the churches are where they can find escape from their frustration, misery, griefs, mental suffering, and get release and relief for themselves. For the pastor, the church is a bigh income generator, giving him undreamt of wealth and luxury. The recent news reports of a mega church in Singapore, where the pastor is a multi-millionare is one example of such a church.
Such churches will not hestitate to remove any religious artifacts, like the Cross, and stop singing hymns and praying in order to receive a non-Christian VIP. To the pastors and church leaders, the Lord Jesus Christ is irrelevant so long as they receive material benefits such as government grants for their mega church building and facilities. After all, Christ is just a brandname of their religious commercial enterprise.
Finally, there are the radical non-comformist Christians, who will stick out their necks to stand up for their faith and principles. There is no organised body of such Christians, but they are found in various churches, especially the traditional denomination churches. These are Christians who are well-educated in their faith, know what it means to be "salt of the Earth" and "lights of the World", are professionals in the various fields in the secular marketplace, are outspoken and articulate in issues, especially on matters concerning the truth, righteous, justice, fairness, racial and gender equality, freedom of religious practices, freedom or speech and press, and accountability and transparency in the church and in government.
These are the Christians that the pastors and church leaders generally ignore and avoid, and will distance themselves from, for fear of getting into the bad book of the authorities. We don't find them holding leadership positions in the churches, but we see them active in the secular marketplace, spearheading the struggle for the advancement of God's kingdom among the people of the world, standing up and sacrificing career prospects for the sake of the Way, the Truth, and the Life.
These radical non-conformist Christians will never allow their faith and ethics to be compromised for the sake of acceptance by any unreasonable and oppressive regime.
My friend Jackson Ng is right. It's time the Christians who are truly God's people stand up and be counted in the face of the increasingly exessively unloving and tyrannical repressive regime.
MySinchew 2011-01-04

Nazri speaks on 1Malaysia and various issues

Nazri: political leaders thrust crutches upon Malays who are already self-reliant (UPDATED)

  • Nazri: "Many Malay students already have the ability in their own right to gain entry into famous foreign universities for studies, but unfortunately, many leaders are still repeatedly reminding the Malays that they need government support." Photo courtesy: Sin Chew Daily
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KUALA LUMPUR, Thursday 6 January 2011 -- Minister in the Prime Minister's Department Datuk Sri Nazri said that it was not that the Malays lacked confidence, but it was rather that some political leaders had yet to wake up and were still continuing to remind the Malays not to be too capable!
He said that, in fact, many Malays were now self-reliant.
He told Sin Chew Daily in an interview that there were many Malays who were confident of themselves now; and did not really want to rely on the Government's bumiputra policies, and they desired to show their abilities.
"Many Malay students already have the ability in their own right to gain entry into famous foreign universities for studies, but unfortunately, many leaders are still repeatedly reminding the Malays that they need government support."
Nazri used his own family as an example and said that more and more Malays could sustain themselves without government support.
"My grandparents came from Hulu Perak; they were not rich. Although there was no bumiputra policy at that time, my father managed to go overseas to study law and became a lawyer. I later followed in his footsteps and went to UK to study law at my own expense."
"PAS which was very conservative has already become open. Everyone should change; I hope Umno will not revert to its old ways."
Malaysian society going backwards
He said that the more advanced our times had become, the more backwards Malaysia seemed to be going. In an era without borders, many people continued to emphasize their ethnic race, advocate a singular point of view and were increasingly fanatical.
When on the topic of how a lot of people were afraid of becoming less Malay, Chinese or Indian, Nazri’s first response was: "I never worry about becoming less Malay, even though among leaders, I am one of the few who have this kind of thinking!"
He was also not worried that because he "is less of a Malay", he would be unpopular with people of his ethnic race, and said that that many in the Malay middle class agreed with him.
Nazri stressed that education was important as it allowed the Malays to become confident.
He also encouraged all races to interact with each other, and not to limit themselves to those of their own ethnic group.
Nazri: history textbooks will be honest and not cover up Yap Ah Loy’s contributions
Nazri pointed out that Kapitan Yap Ah Loy was a major founder of Kuala Lumpur. This is the truth, why should we cover up this fact?
He stressed that the history books must be based on facts and must be inclusive, so that history could be a tool for nation-building.
He told Sin Chew Daily that an in-depth study of Malaysia’s history would reveal that the ancestors of the various ethnic races have fought for national independence, and their contributions should not be concealed.
He said that the government wanted the people to feel proud of the nation’s independence, and wanted young people to wave the national flag on National Day to express their patriotism, but on the other hand told them: "Your race did not make any contribution." "How can we then convince the people?"
Therefore, Nazri suggested that before the compiling of history textbooks, the government should organize seminars, so that we could reach a consensus and accept these history textbooks.
Chinese are also Malaysians; it is understandable for them to want fairness
Nazri felt that it was reasonable that the Chinese had their demands for fairer opportunities in education and business, since Chinese were also Malaysian citizens, and the Chinese were living in this country.
Nazri felt that it was a very stupid action to question the patriotism of non-bumiputras from time to time, and described those who tell Chinese "to return to China" as having no common sense.
He regretted that the patriotic spirit of non-bumiputras was questioned, and in the matter of "non-bumiputras being accused of not joining the army because they are not loyal", he felt a strong sense of injustice.
"A lot of Malays, including myself, do not send their children to the army. Does it mean that the Malays, including me, are not patriotic?"
"If it is said that it is not patriotic of the Chinese to not send their children into the army, then are the Malays not the same?"
No need for racial remarks
Nazri said that he understood the deep disappointment and anger felt by the Chinese community over calls to Chinese to go back to China and remarks that the Chinese were disloyal and stressed that such racial remarks were totally unnecessary.
"They should not have casually called on the Chinese to go back to China... These people have something wrong with their brains."
"When China opened her doors in 1978, the Malaysian Chinese did not return to China in bulk. Malaysian Chinese only travelled to China for sightseeing; and returned to Malaysia. They did not return to China."
Nazri, who is the Member of Parliament for Padang Rengas, Perak said that the ancestors of many Malays were also from other places, and they also had a habit of returning to visit their ancestral homes. So why can the Malays do it and why can the Chinese not do it? Why have two sets of standards?
"So what if we call this piece of land Tanah Melayu? Thailand have 6 million Malays living there even though it is known as Thailand, and the United Kingdom is called England (English land), but there are many black people staying there. How do you explain it?"
People in Umno playing political games cause resistance to Najib’s reforms
Nazri did not deny that there were too many people in Umno who were playing political games, and causing great resistance to Najib's reforms.
"For example, I recently met with Wong Meng Chee. And some Umno members wanted Najib to dismiss me. I just ignored them, and I also could not care less."
Nazri said that as the first cabinet minister to announce himself as "Malaysian first, Malay secondarily," it did not pose any problem for him.
He agreed that many people did not dare to make such a declaration, and it might be due to self-preservation.
"I do not care what others think of me. I only want to service the people. I do not regard the official position as a personal honor. I have no worries. I have been a minister for 11 years; it would not be a problem for me if I were to retire. For me, being a public servant means I have to serve the people. This is not personal glory, but service. As long as the government still needs me, I will continue to serve."
A lone ranger in Cabinet
Nazri admitted that he was "one of the very few" in the Cabinet as he acted and talked rather differently from other ministers. He said probably due to political considerations some Cabinet ministers had not put the 1Malaysia concept into action even though they agreed to it.
He said he believed Perkasa was against 1Malaysia, but did not understand why some ministers still lent their support to the organisation.
"We should oppose Perkasa if we say we support 1Malaysia. Unfortunately I do not see any minister voice up against Perkasa. Yes, they say they support 1Malaysia, but I am not sure whether they have any practical action to support their claims."
When asked whether he belonged to the "one of the very few" in the Cabinet, Nazri said, "It seems to be this way. I don't know. We are not much different when it comes to talking. They know what I ask for, but are not doing anything."
"Probably there are some viruses inside my brain that make it hard to operate in a normal way. Since I belong to that minority group, the majority would do things in a way very different from me."
He also said he would just say it out directly if necessary, regardless of how senior a minister was, because he supported the prime minister and cared about the rakyat.
Nazri reiterated that the prime minister had not entrusted him with any particular mission, and all that he had done or was doing was from the bottom of his heart.
Need for continued existence of ISA
Nazri felt that it was necessary for the continued existence of the ISA, citing the reason that there were simply too many self-proclaimed heroes who would manipulate racial issues to protrude themselves.
Without ISA, he said, it would be very tough for the government to deal with these people.
Nazri admitted that racial relations remained fragile and tense even after the country had been independent for 53 years.
He nevertheless believed that Prime Minister Datuk Seri Najib Tun Razak was capable of handling the issue through the wealth of experiences he had accumulated over his past 23 years in politics.
Support from Malays still high
Nazri said he was not worried that his moderate talks would cost him the votes of the Malays, adding that he had the support of some 72% of Malays.
"You say leaders playing up racial issues will have good market demands, but in a democratic country, I only need 51% to get elected. I think I can get 51% if I do the right things. So, I don't worry about the market. Sure enough there are people supporting narrow-minded remarks, but they are not the majority.
"When talking about pluralism, I believe I am not one of the very few. While newspaper reports and blogs will draw the attention of many, the majority of Malays living in kampungs will not give them a heed. Newspaper reports and blogs do not represent the majority."
Nazri said direct BN membership was one way of diluting the ethnic tone of a political party. He said Umno, MCA and MIC would probably be no longer in existence if direct members of BN were to outnumber members of all component parties one day. However, he admitted that this could take a very long time to come through.
Quota system should go on
Nazri said unreservedly that he supported the country's existing quota system, and that this system should be based on the racial make-up of the country, i.e. 51% for bumiputra and 49% for non-bumiputra.
When asked whether the bumiputra policy would hinder national unity, Nazri said the quota system would ensure that national wealth was fairly distributed to all ethnic groups.
But does that mean meritocracy is no longer required in this country?
"When we talk about 51% and 49%, it should be distributed based on the lowest requirements. This is what I call meritocracy.
"For example the government wants to give away 100 scholarships to students scoring 5A's. While all the 45 non-bumiputra students score 5A's, only 30 out of 55 bumiputra students score 5A's. If we offer scholarships to the 25 bumi students not meeting the criteria, then it will be unfair and is against the principles of meritocracy."
"To me, quota system is required, as we are a multiracial society. We do not want any particular ethnic group to fall far behind and get unhappy. That said, the quota system must be fair and implemented based on meritocracy."
Religious conversion is not the way to avoid responsibility
Solve all the family and marital problems first before the conversion. Religious conversion is not the way to avoid responsibility. This is the advice of Minister in the Prime Minister’s Department Datuk Seri Nazri Aziz to those who wish to embrace Islam.
Nazri urged those who want to become Muslims to settle all their problems with their non-Muslim family members, including their former wives or husbands, as Islam should not be used as a tool to avoid responsibility.
Religious belief for those under 18 years old
According to Nazri, it is wrong to say that when one of the parents converts to Islam after their divorcement, he or she has the right to convert their children.
Nazri said that he sincerely believes that there is a constructive contract between every couple and their children have to be raised under their religious belief.
"Many Hindus have converted to Islam recently and the children were converted when the husband converted to Islam. According to them, children under 18 years old have no independent personal religious belief and their parents can raise them based on their own preferred religion,” he said.
"However, it is wrong to say that there is no religious belief for those under 18 years old as when their parents got married, they were both Hindus and the children, regardless whether they are eight or nine years old, know what is their religion as their parents had bought them to Batu Caves and Hindu temple. They also celebrate Deepavali. This shows that they have a religious belief," Nazri said.
As for the S. Shamala case, involving the unilateral conversion of children to Islam by one parent, Nazri said that any dispute before the conversion to Islam must be resolved in a civil court as the jurisdiction of the syariah court is only applicable from the date of conversion.
"Shamala's husband converted to Islam after their marriage and therefore, the case should be settled in a civil court,” he said.
Federal Court has no right to make judgment on religious belief
Nazri said he does not agree with the claim that the Federal Court has missed a golden opportunity to identify and clarify vital issues in the Shamala case.
He pointed out that as no amendment had been made to the relevant laws, the Federal Court has no right to rule on a person's religious belief, and the people must respect the existing legal provisions.
"The failure to amend the law means the problems still exist and the civil court will not and cannot hear cases related to Islam, which are rightfully under the jurisdiction of the syariah court," Nazri said.
On whether the civil court or the syariah court is the more appropriate court to rule on a person’s status as a Muslim, Nazri said: "The court should not be the forum to decide whether or not a person is Muslim. It is very controversial, and I do not know which is the most appropriate forum. If we amend the law, the civil court would be the best forum."
Translated by Adeline Lee, Dominic Loh and Soong Phui Jee
Sin Chew Daily
MySinchew 2011.01.06

1Malaysia: The Politics of Numbers



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