Friday, 22 October 2010

Understanding Malaysian REITS

Thursday October 21, 2010

What is REITS and how to get monthly dividend payments from it

Personal Investing - By Ooi Kok Hwa


A LOT of investors, especially senior citizens, are hoping to get consistent and regular dividend payments from stocks.
In this article, we will look into constructing an investment portfolio, which consists of real estate investment trusts (REITs), to get monthly dividend payments.
A REIT is a real estate company that pool investor funds to purchase a portfolio of properties. Normally, it has two unique characteristics: investment in income-producing properties, with almost all of its profits distributed to investors as dividends.
From the table, based on the latest stock price (as at Oct 18) and on assumption that the same dividend payments will be paid over the next 12-month period, almost all REITs will provide about 7%-8% dividend yields. Based on our observations, most of the REITs will try to pay higher dividends over the years. Hence, if the overall economy continues to recover, some REITs may pay even higher dividends for the coming few years.
Due to them only listing at the middle of this year, we have excluded CMMT and Sunreit.
As mentioned earlier, a lot of retirees would like to invest in investment assets that can provide a consistent and regular dividend income. Therefore, we think that REITs can provide a good alternative to the retirees. From the table, except for Arreit, Atrium, Axreit and Hektar, all other REITs will make dividend payments twice per year. Most of them will pay their dividends in the month of February and August. Hence, if an investor would like to receive his dividends other than the above two months, he may need to diversify their REITs into holding many types of REITs.
Based on the list of REITs in the table, we can see that, except for the month of January and April, dividend payments were being made at different months throughout the year, thus investors can receive a stream of dividend income by buying into different types of REITs.
Investors can build a REIT portfolio consisting of a few REITs which make dividend payments at different months of the year. The following is just one of selection options available for consideration.
Based on the current price dated on Oct 18, assuming that the same dividends will be paid in the next 12 months, a portfolio with AMfirst, Arreit, Atrium and Hektar can generate a dividend yield of more than 8% (see table). Besides, by buying with equal amount into these four REITs, investors can get dividend payments for almost every month, except for the month of January, April, July and October.
Nevertheless, investors need to understand that the above selections are solely based on the assumption that these REITs will reward investors with the same dividends and pay during the same month as shown in the table above.
We also understand that apart from the above four REITs, some other REITs may reward investors with even higher dividend payments.
OoiKokHwa is an investment adviser and managing partner of MRR Consulting.


Click here too:
http://boyboycute.blogspot.com/2010/10/why-bother-investing-in-malaysian-reits.html
This blogger expressed concerns over Malaysian REITS.

THURSDAY, OCTOBER 21, 2010


Why bother investing in Malaysian REITs?

Today, i read an article on The Star by Mr. Ooi Kok Hwa regarding REITs. Take a lot at the article here.

What makes me furious is that Mr. Ooi who is an investment adviser and managing partner of MRR Consulting,has misled the public by not discussing the real issues in Malaysian REITs(MREIT).I guess a consultant is still a CONsultant.

MREIT is full of crap properties.If you look at their portfolio,most of these properties are actually dumped by developers/owners since they cannot sell their buildings in the market to professional institutional investors.For example,SUNWAY REIT (which i wrote earlier) is one of them.Creating a REIT is the best way for developers/owners to either 'sell their building at higher valuation' or 'unload their poor quality properties to the market'.

Thursday, 21 October 2010

Singaporean Investor sentiment high

Oct 20, 2010
Investor sentiment high
By Aaron Low
About 52 per cent of respondents in the survey believed their share investments will rise, compared with 46 per cent three months ago. -- ST PHOTO: BRYAN VAN DER BEEK

INVESTORS in Singapore are betting that the red-hot stock market will keep rising but they believe prospects for the property market have dimmed, a new survey said.

It found also that overall investor sentiment, which has been positive for the past 18 months, rose by five per cent in the three months to Sept 30, compared with the previous quarter.

About two-thirds of respondents here said their investments had brought in positive returns while around 63 per cent expect a higher return in the next three months. Such a positive outlook has been fuelled mainly by the strength of the stock market, which recently hit a 29-month high.

About 52 per cent of respondents in the survey believed their share investments will rise, compared with 46 per cent three months ago.

The survey was done by financial services firm ING Group, polling 3,755 affluent investors across 12 Asia-Pacific countries, including China and Singapore.

Remisier Desmond Leong attributed the bullish sentiment to the psychological effect of watching the stock market's march upwards. 'You may have doubts initially about its rise but when you see the market moving up, you jump in too.'

http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_592933.html

Current healthcare business model causing rise in expenditure

Frost & Sullivan: Current healthcare business model causing rise in expenditure


Written by Melody Song
Thursday, 21 October 2010 13:04


KUALA LUMPUR: The current healthcare business model, which is driven by incentives given by insurance providers based on patient visits are causing the rise in healthcare expenditure, according to a survey from Frost & Sullivan.

The business research and consultancy firm said in a statement Thursday, Oct 21 that the present model results in 90% of a country’s healthcare expenditure being spent on only 30% of its population, thereby causing the rise in healthcare cost.

“The healthcare system needs to embrace a paradigm shift to incentivize the wellness condition of a person rather than merely treating diseases or sick-care” said Frost & Sullivan senior vice president Reenita Das.

Frost & Sullivan also said that under the current healthcare system, physicians' attention is only focused on 20% of a person's life, whilst another 80% goes neglected.

Medical hours are spent on treating symptoms or diseases rather than ensuring the overall wellness of a person, it added.

“There are huge opportunities for healthcare providers, medical devices sector, pharmaceutical sector and other healthcare verticals to tap into this 'lucrative but yet to be explored area’ of a person’s life,” it said.

Frost & Sullivan said it expected the cost of healthcare to continue rising as the global ageing population increases under the current healthcare model, unless there is a paradigm shift in the healthcare system towards a patient-centric model.

http://www.nextview.com/rss_list.php?url=http://www.theedgemalaysia.com/index.phpYYYoption=com_contentXXXtask=viewXXXid=175757XXXItemid=79

Association tells glove makers to up prices

Written by Surin Murugiah
Wednesday, 20 October 2010 15:16


KUALA LUMPUR: The Malaysian Rubber Glove Manufacturers’ Association (Margma), whose members collectively supply 60% of the global rubber latex glove consumption, advised its members to raise glove prices in line with high raw material costs and continued weakening of the US dollar.

This may well explain the share price surge among the rubber glove makers on Bursa Malaysia yesterday.

Top Glove Corporation Bhd rose 19 sen to RM5.68 Supermax Corporation Bhd was up 14 sen sen to RM4.65, Latexx Partners Bhd up four sen to RM2.86, and Kossan Rubber Industries Bhd gained two sen to RM2.86.

But Hartalega Holdings Bhd shed four sen to RM5.42 while Rubberex Corporation (M) Bhd lost 0.5 sen to 85.5 sen.

In a statement yesterday, Margma president KM Lee said most rubber glove manufacturers had started raising selling prices of their products to reflect the rising raw material costs and the weakening of the US dollar.

“If the orders forthcoming do not match the glove price requested, glove makers have no choice but to reduce the output,” said Lee.

Margma said the price of natural rubber latex had increased by about 19% from an average 657.25 sen/kg in January 2010 to a new record high of 782 sen/kg last Friday.

Meanwhile, the US dollar has weakened against the ringgit by around 13% compared to 12 months ago, it said.

Rubber futures contract in Shanghai hit an all-time high yesterday boosted by strong demand at a time of restricted supply in main producing countries. Concerns that rubber production in China will be affected by typhoons also lent support to the futures price.

The Shanghai rubber futures contract for March delivery hit a record 33,000 yuan (RM15,438) per tonne, up 3.8% from the previous high of 31,800 yuan per tonne marked on Oct 15.

Lee said despite the strong headwinds, the industry would remain bullish as demand for gloves was expected to grow at between 8% and 10% annually.

“We expect further growth in the industry on the back of rising healthcare awareness in emerging markets, especially in China, India and the Latin American countries.

“Comparatively, the healthcare expenditure in these regions is relatively low against what is being spent in the US, Europe and Japan,” said Lee.

Lee added that the domestic glove industry was to a large extent recession-proof and was relatively unscathed even during the recent economic downturn, mainly due to gloves being a necessity in the healthcare sector.

However, he pointed out that the glove industry was facing constant challenge with the ever-fluctuating raw material prices, particularly natural rubber latex for rubber gloves and crude oil for nitrile gloves.

The association also urged the government to be considerate in the removal of the natural gas subsidy by not overburdening an already challenging industry with a big and sudden gas price hike.

The removal of the subsidy for natural gas should be done over a period of time, it said.

The association has 46 members and 89 associate members. The ordinary membership is open to all bona fide rubber glove makers in Malaysia while others who directly involved in the trade or industry are eligible for associate membership.


This article appeared in The Edge Financial Daily, October 20, 2010.

Weeding out over-heated stocks

Avoiding over-priced stocks that could plunge anytime is as critical as picking the right stocks. 

Buying over-heated stocks and losing money in a bubble burst is not an uncommon phenomenon in the markets.

Stocks that have moved up the ladder very quickly are potentially risky. The sudden spurt could be based on a rumour or event not backed by strong fundamentals. 

Good market conditions or bull runs do not last forever. Investors, who believe that good times are here to stay often burn their fingers. 

On a similar note, an over-valued stock has little scope or space for upward movement and could lose its momentum anytime.  

A little bit of research and analysis will help investors make prudent investment choices even in bear market conditions.


http://economictimes.indiatimes.com/features/financial-times/Investment-tips-Pick-the-right-stock-at-right-time-for-returns/articleshow/6759442.cms

Pick the right stock at right time for returns


Investment tips: Pick the right stock at right time for returns


Stocks
















Picking the right stock at the right time, and booking profits, is a challenge for many small investors. With hardly any time for research and a desire to reap quick profits, many investors often rely on friends and expert advice. The risks are considerable even if you chase a rising stock, without comprehending the driving forces.   How do you differentiate an overheated stock from one that has truly appreciated in its intrinsic value? 


Identifying an under-valued stock 


An under-valued stock is a great investment pick as it has high intrinsic value. Currently under-valued , it has immense potential to rise higher and make the investor richer. 


A low price-to-earnings (P/E) ratio can be an indicator of an under-valued stock. The P/E is calculated by dividing the share price by the company's earnings per share (EPS). EPS is calculated by dividing a company's net revenues by the outstanding shares. A higher P/E ratio means that investors are paying more for each unit of net income. So, the stock is more expensive and risky compared to one with a lower P/E ratio. 


Trading volume is an indicator 


Trading volumes can help pick stocks quoted at prices below their true value. In case the trading volume for a stock is low, it can be inferred that it has not caught the attention of many investors. It has a long way to ascend before it touches its true value. A higher trading volume indicates the market is already aware and interested in the stock and hence it is priced close to its true value. 


Debt-to-equity ratio 


A company with high debt-to-equity ratio can indicate forthcoming financial hardships. If the ratio is greater than one, it indicates that assets are mainly financed with debt. If the ratio is less than one, it is a scenario where equity provides majority of the financing. Watch out for stocks that have low debt-to-equity ratio. 


Some other pointers 


Historical data of stocks that have performed consistently and yielded good returns are reliable. A higher profit margin indicates a more profitable company that has better control over its costs compared to its contenders in the same sector. 


Weeding out over-heated stocks 


Avoiding over-priced stocks that could plunge anytime is as critical as picking the right stocks. Buying over-heated stocks and losing money in a bubble burst is not an uncommon phenomenon in the markets. Stocks that have moved up the ladder very quickly are potentially risky. The sudden spurt could be based on a rumour or event not backed by strong fundamentals. 


Good market conditions or bull runs do not last forever. Investors, who believe that good times are here to stay often burn their fingers. On a similar note, an over-valued stock has little scope or space for upward movement and could lose its momentum anytime. 


A little bit of research and analysis will help investors make prudent investment choices even in bear market conditions.




http://economictimes.indiatimes.com/features/financial-times/Investment-tips-Pick-the-right-stock-at-right-time-for-returns/articleshow/6759442.cms

Dollar plummets on report Fed plans to pump $500bn more into economy

US stock markets recovered on Wednesday as the dollar fell across the board amid further signs the Federal Reserve will increase economic stimulus over the next six months.

The dollar fell across the board on Wednesday amid signs the Federal Reserve will pump $500billion into the economy over the next six months.
The dollar fell across the board on Wednesday amid signs the Federal Reserve will pump $500billion into the economy over the next six months. Photo: Getty Images
 
The Fed’s Beige Book survey on regional business on Wednesday said the US economy expanded at a “modest pace” with little sign of acceleration last month, fueling speculation that central bankers could take further measures to support growth.
Jack Ablin, chief investment officer at Chicago-based Harris Private Bank told Bloomberg: “The Beige Book reiterates the call for quantitative easing. The economy is growing, just not accelerating. It remains to be seen what ultimately the Fed buying of bonds will do.”
A report by consulting firm Medley Global Advisors suggested the Fed could start introducing the stimulus as soon as next month, spending $100bn a month on bond purchases. It is understood the Fed has an open-ended commitment to do more over the next 18 months. 

The dollar plummeted to its lowest level against the euro since July, and a 15-year low against the yen. The euro was up 1.06pc at $1.395 and the dollar ended at 81.05 yen. 

Camilla Sutton, Scotia Capital currency strategist, told Reuters: “We think the dollar will end the year weaker, but for now, we're probably going to be in a period of more subdued trading until we get a firmer idea of where policymakers are headed.” 

Meanwhile stocks and commodities recovered after China’s surprise interest rate hike on Tuesday. The Dow Jones industrial average was up 129.35 points, or 1.18pc, at 11,107.97. The Standard and Poor’s 500 Index was up 11.78 points, or 1.05pc, at 1,178.17, with more than 20 companies scheduled to report third-quarter earnings today. The Nasdaq Composite Index was up 20.44 points, or 0.84pc, at 2,457.39. 

Key companies driving the market change included Boeing, whose shares rose 3.35pc after posting a quarterly profit that beat Wall Street’s expectations. Delta Air Lines and US Airways Group also surged after reporting strong profits. 

Web portal Yahoo! rallied 2pc after announcing late on Tuesday that third-quarter net income had more than doubled to $396.1m, or 29 cents a share. 

Wells Fargo, the largest US home lender, climbed 4.28pc after saying it was “eager” to return cash to shareholders following a record quarterly profit. 

Lawrence Creatura, a New York-based fund manager at Federated Investors Inc, told Bloomberg: “We’ve had a variety of company earnings reports which indicate that the sky is not falling. Yesterday was a dark day for the market because of macro factors. Today it will be company management teams’ turn to lead the way again.”



http://www.telegraph.co.uk/finance/markets/8077090/Dollar-plummets-on-report-Fed-plans-to-pump-500bn-more-into-economy.html

Umno AGM: Malaysian first despite diversity in race, says Khairy

Wednesday October 20, 2010 MYT 9:42:18 PMUmno AGM: Malaysian first despite diversity in race, says Khairy

KUALA LUMPUR: Malaysia also belongs to the other races and it would hurt their feelings to be referred to as pendatang, said Umno Youth head Khairy Jamaluddin.

“At the same time, we must also empathise with the feelings of the non-Malays – when they are referred to as pendatang or told to return to China or India; what of their feelings? This too is their country. This is their country of birth; in fact that of their parents and grandparents,” he said in his policy speech at the Umno Youth general assembly Wednesday.

“What of the feelings of the poor non-Malay student denied government scholarship despite achieving outstanding results? We often hear of grouses about how the Government administration is dominated by Malays. Are we to believe that there are but a few non-Malays qualified to hold senior positions in the civil service?”


Khairy giving his speech at the assembly

Khairy added that the barriers that separate Malaysians only become “higher and thicker” when each person failed to understand and appreciate the feelings of other races.

“The 1Malaysia concept needs to be held as a shared aspiration amongst all races. Community life in a multi-ethnic country certainly demands much patience and courtesy from everyone. We should not hastily pointing fingers at each other in the face of any issue, big or small,” he said.

“We need to understand the feelings of other people if we want them to understand ours. We all need to imagine ourselves in each other’s shoes, assume we swap places, switch fortunes, only then can we appreciate the universal truth that our shared humanity unites us more than it divides.”

He added that Malaysians needed to “give and take”, which does not translate into only side giving and the other receiving.


Khairy said that while perspectives of each ethnic group was still influenced by communal and religious identities, which were important and could not be separated, the collective interest of being Malaysian citizens should remain “foremost”.

“Whatever differences there may be must not become obstacles to a life of mutual respect, understanding, striving together, united in spirit. Irrespective of our differences, as citizens of this blessed land, we pledge allegiance to the same King, we defend the same Constitution, we live under the same laws, we hold to the same values,” he said.

“As such, the aspirations, ambitions, national interest and collective harmony, the Malaysian spirit and passion must be our priority. For each and everyone of us, be it in this hall or out there, in the rural or urban areas, in new villages, estates or kampungs – for all Malaysians, this is where we make our home and family, this is where we forge our destiny, this is our country, this is our homeland.”

Meanwhile, Khairy also said the Malay and Bumiputra agenda would continue to be the main thrust of Umno Youth's struggle but the approach needs to be changed.

He said even with the passage of time and a changing political landscape, the principle “struggle and heart” of today’s Umno Youth was still the same rhythm as previous leaders who had formed the party to struggle for the rights and voice of the Malays.

“The question of whether Umno is the one true platform to fight for the future of Malays should not even arise.

“The question that arises should not be about the aim of our struggle. Without being emotional, we must be bold enough to separate between purpose and method. We must understand the difference between the objectives of a struggle and the approach employed to that end.

“The goal of elevating the Malays will never be forgotten much less cast aside. What needs to be changed is the approach or the way things have been done thus far,” he said.

Khairy said he was aware that some might ask why the need for change and why the need to fix something that was not broken.

“On this issue we need to be honest and not let emotions get the better of us. Let it not be that simply wanting to re-examine an approach of the agenda for Malays invites the charge of being a traitor.

“Let it not be that wanting to improve the efficacy of the policy or identify weaknesses in the implementation of the New Economic Policy (NEP) lead to Malays being incited that the Barisan Nasional government apparently no longer cares about the Malay agenda,” he said.

He said Umno needed to acknowledge the weaknesses that existed and build a new concept that could elevate the status of Bumiputra to a higher level.

He added that while Bumiputra equity had risen compared to before the NEP, it had fallen from 20.6% in 1995 to 19.1% in 1999 when economic growth was at its greatest.

During that period, he said, many Malay millionaires were given opportunities through privatisation programmes and ownership of shares via “pink forms”.

Unfortunately, these forms allocated to Bumiputra to increase the community’s equity position were sold off because some wanted a quick buck, the luxurious bungalow, Mercedes and young wife which were more becoming of their newfound status, he said.

This group, he said, failed to remain grounded and the gifts given in trust that were supposed to be as means to assist the rest of the community who had yet to benefit from the NEP were hoarded to become theirs alone.

“The immense greed that took over made them forget the greater good. The NEP’s aim to create more successful Malay corporate tycoons following the success of the chosen ones, was left unfulfilled due to the voracity that blinded them and preceded their responsibility towards the people.

“These are some of the leakages and problems that weakened the implementation of the NEP. By right, with all the power and policies on our side, the Malays should no longer have to speak about quotas today.

“For after so long, the Malays should already be able to stand on our own two feet and pass the 30% equity target, achieving income levels at par with other ethnic communities,” he said.

Full text of Khairy's speech

POLICY ADDRESS KHAIRY JAMALUDDIN ABU BAKAR HEAD OF UMNO YOUTH AT THE UMNO YOUTH GENERAL ASSEMBLY 20 OCTOBER 2010, 8.30 AM, DEWAN MERDEKA, PWTC

“MAQASID DAN MANHAJ PERJUANGAN” Yang Berbahagia Dato’ Pengerusi Tetap, Yang Berbahagia Saudara Timbalan Pengerusi Tetap, Representatives of the Supreme Council Yang Berhormat Dato’ Naib Ketua Pergerakan Pemuda UMNO Malaysia Executive committee members of UMNO Youth Malaysia Leaders of UMNO Youth at state levels

1.Alhamdulillah, all praise be to Allah The Most Merciful and The Most Benificient, for it is through His grace and will we are gathered in this historic hall, the Dewan Merdeka, on this morning for our Annual General Assembly, in line with the main pillars of our party’s democracy, constitution and tradition.

2.We assemble once again to assess and debate not only our achievements and those of our party at large, but also the direction and guidelines of our cause from this moment on. With that in mind, let us hope that Allah SWT sees all our endeavours as ibadah and may He grant us success and guidance.

3.As a political organization centred on performance and achievement, UMNO Youth needs to be assessed by a number of performance indicators. The Deputy President in his officiating speech last year outlined this approach. Specifically, among the performance indicators to measure our effectiveness are the number of new members and the level of support from young voters towards UMNO and Barisan Nasional.

4.It is with pleasure that I announce, UMNO Youth, since the beginning of the current term, leads all other party wings and the main body on this front, with an additional 41,663 new members, which accounts for 43 percent of all new party members. Though collectively we have good reason to be proud of this trend, I hope the efforts of all UMNO Youth divisions and branches to court new members will continue to grow. I say this because at present there are certain divisions that appear content merely with nominal additions. Every division must shoulder the responsibility of increasing the number of new members and to further register them as voters.

5.As a mass-based party, we require extensive participation from teenagers and youths at grassroots level. I want there to be no more cases of young people wishing to join UMNO but having to wait for years owing to bureaucratic reasons or political sabotage by those who feel threatened by new blood and new talent. I fought hard to ensure that UMNO Youth Leaders at the branch level can now sign off on membership forms to ease the entry of young people into UMNO. We should take advantage of this recent amendment to the constitution by making sure there is a comprehensive, continuous and serious effort to add to the numbers of new members.

6.On the matter of young voters support, we observed signs of the tide turning in our favour during a series of by-elections. In Manek Urai, Bagan Pinang and Hulu Selangor, voting patterns in young voter streams revealed a shift in the acceptance among young voters to UMNO and Barisan Nasional. In Hulu Selangor for instance, we won 30 young voter streams in the by-election compared to just 11 in 2008. There are of course a number of factors contributing to this change. Nonetheless, these results show resurgence in the support for UMNO and Barisan Nasional, a development made possible by UMNO Youth’s efforts to win them over.

7.We should recognise that come the next General Elections, it is estimated that young voters will account for 80 percent or almost 3 million of new voters, and that the proportion of their votes will increase from 41 percent in the 12th General Election to 49 percent in the 13th General Election. This is in line with our research, which found that 75 percent of young people qualified to vote do plan to exercise that right in the coming election. At the same time, our research also showed that 62 percent of these young voters are fence sitters who will cast their votes based on the party and candidate they feel is best.

8.We must accept the fact that young voters today are able to distinguish between mere rhetoric and genuine service, between elaborate pretensions and sincere efforts. Young people no longer appreciate politics reliant on rhetoric, demonstrations, lodging police reports and urging the government to arrest anyone who does not share our political beliefs, although such politics may still be appropriate in certain contexts. In all likelihood, such politics will only serve to drive them further away from us.

9.The new era also demands we shape a youth leadership that is more open and progressive, respected by all levels of society, across race and religion. This is also consistent with the moderate brand of politics or siyasah wasatiyyah practiced by the UMNO President himself. Contemporary politics do not permit us to indulge in political guesstimates where strategies are based on biases and personal assumptions, instead of actually referring to the target group for their views and ideas. The rise of the youth vote demands a new approach and direction.

10.This new approach I speak of has been manifested in an organized, systematic and thorough engagement exercise at a level previously unseen in UMNO Youth. BN Youth Lab was spawned as the brainchild of the President himself – established by Barisan Nasional Youth to better understand the aspirations and concerns of young Malaysians.

11.Various policy proposals were borne of the Youth Lab covering various aspects such as housing, education, child and parental care, the minimum wage, PTPTN loans, commercial loans and prices of goods. Alhamdulillah, during the Budget 2011 presentation, the Prime Minister, acting in his capacity as Minister of Finance recognized the voice of young people in the country – brought to the fore by BN Youth – by inserting into the Budget a number of key proposals from the BN Youth Lab:-

First: Skim Rumah Pertamaku to assist young people who have recently entered the workforce earning less than RM3 thousand a month to own their first home more affordably;

Second: The creation of the 1Malaysia Youth Fund for the purpose of youth development and the implementation of programs characterizing the spirit of 1Malaysia with an allocation of RM20 million;

Third: Commitment on the part of Government towards a minimum wage via the creation of the National Wage Consultation Council;

Fourth: The allocation of funds of RM474 million to increase skills through various training institutes for non-graduates such as school leavers; and

Fifth: The widening of the scope for current tax breaks for expenditure incurred in sending parents to daycare centres as well as the costs that their care incurs. Moreover, for the first time in history, a BN youth initiative was mentioned and accorded recognition in the budget speech.

This is something we very much appreciate. More importantly, we have helped many young people through the implementation of these policies. On the issue of the minimum wage, more than 6 million young workers will experience an elevation in their status with more appropriate wages. On the other hand, Skim Rumah Pertamaku gives hope and opportunities to many young people who previously may not have been able to afford to buy their own homes. I have also been flooded with hundreds of messages of gratitude over UMNO Youth and BN Youth’s efforts, which have presented them with something special. This is the Youth movement that represents, speaks for, and champions the aspirations of all Malaysians. Apart from the above, we also organised the Rally 1Malaysia, which succeeded in bringing together 15,000 young Malaysians of all races. We have also begun a series of Jelajah 1Malaysia programs, which combines the participation of youths with unity-based programs. We are also going to tour the entire country to repair thousand of homes of poor families.

12.I am also pleased to announce that the next wave of UMNO Youth activity is geared towards overcoming the problem of unemployment amongst the younger generation. At a time when we are heading towards a status of a high-income country, we want to avoid widespread despair caused by unemployment. For that, we must further affirm the fight against unemployment with various initiatives encompassing the push for a youth unemployment insurance scheme for those who are made redundant, a focus on training to increase skills and the organizing of career expos to ‘matchmake’ employers with job-seekers.

13.In being committed and steadfast in understanding and championing aspirations of the youth, we also propose that the University and University Colleges Act 1971 be amended to allow university students to be actively involved in politics. What is the point of us trumpeting that young people are important assets and future leaders if their wish to involve themselves politics is denied and met with scorn? Once again, I am grateful for the President’s open minded-ness in agreeing to consider this proposal. UMNO Youth does not only wish to give adequate space for the best minds to contribute through politics but more than that, we want to acknowledge and elevate this group who are most definitely looking to us for leadership.

14.As the President said, the era of “government knows best” is over. In the past we may have asked young people to be thankful for all the development brought about by UMNO and Barisan Nasional. I recall my days as a university student, constantly reminded to feel precisely that sense of gratitude to UMNO and Barisan Nasional. A slew of government policies were laid before us with little room for input and feedback – everything was already determined for us. That is what was meant by “government knows best”. Try doing that today; this formula employing a logic of political gratitude as means of garnering support from young people will most assuredly be rejected.

15.It is not that young people today are not grateful to previous generations or that they do not understand history, but they do not wish to be held hostage to it. While the younger generation should be reminded of dark moments in our history such as the May 13 riots, but they will not stand for scare tactics or political blackmailing in the form of telling them that any deviation from the Government’s wishes would lead to another May 13 episode. It is in the nature of the young, that attempts to coerce them into anything do not bode well and are likely to invite rebellion.

16.This subject was touched on by the President in his speech during the BN Youth Lab townhall session. He spoke of a new political milieu or political environment. In this new arena, we cannot hope to win merely by use of force. For example, the President mentioned the pressure applied by those who still hold on to old tactics in dealing with statements or actions regarded as sensitive or racially charged. Their response to dealing with most anything of that nature is to arrest those involved using whatever means possible.

17.Undoubtedly, there is a time and place for force and authority to be applied especially when national security is at risk from terrorists and extremists. But for us to act with force upon every statement that tests the limits of our patience will certainly not solve the problem. We might be able to arrest one or two, but what of the hundreds of thousands of their supporters? In the end, disaster may befall us for in our obsession with winning the battle we may just end up losing the war.

18.What is required today is a politics based on thoughts and ideas. The current political sphere is no longer entirely about the struggle for power, but a competiton of minds, a battle of ideas. Like it or not, those who challenge our political ideology must be defeated through the sharpness of our intellect and the superiority of our arguments, not by relying on executive power.

19.Young people today increasingly relish political choices that appeal to their cognitive abilities. The spread of information through social media such as Facebook and Twitter is now a choice over traditional mass media. There are close to 8.5 million Facebook users in Malaysia, of which 84 percent are 35 years old or younger. Their thoughts are not shaped by statements or comments by ministers in Buletin Utama or Warta Perdana but by excerpts from YouTube that cannot be controlled or influenced. The world of young people is incredibly different – today, that world is a cyber-world; a world filled with information and interaction 24 hours a day, 7 days a week.

20.As such, engagement with them must take into account a more critical thought process and perspective compared to before. We can no longer shove lopsided propaganda down their throats. We must practice an inclusive culture that appreciates participation of youths and teenagers; and no longer a top down political culture. Young people have a sense of idealism and of their own opinions; the way to winning them over is to include them directly in the process of nation building.

21.Embrace them in the manner of the Prophet Muhammad P.B.U.H with regards to his followers. Although he was chosen by Allah SWT as His Messenger, as a leader he never displayed arrogance that precluded him from hearing the views of others.

22.Allah SWT reminded us of that in Surah Ali Imran: 159 : It is part of the Mercy of Allah that thou dost deal gently with them. Wert thou severe or harsh-hearted, they would have broken away from about thee: so pass over (Their faults), and ask for ((Allah)`s) forgiveness for them and consult them in affairs (of moment). Then, when thou hast taken a decision put thy trust in Allah. For Allah loves those who put their trust (in Him).

23.Overall, the younger generation are happy with the UMNO President’s leadership which is inclusive and allows the space for views of youths to be heard. It is clear that the President’s openness represents a ray of hope for young people that they too have rights and a role in shaping the country’s future.

24.That same openness however, is not shared by everyone. Many still hesitate and fear to widen the participative sphere for young people. As it is, the space to empower young people in UMNO is still limited. Young people in general very much hope for UMNO to be more open towards its younger members. Educate and guide us, teach us and share your wisdom so we may avoid missteps. See us as representing hope, not as threats. Afford us opportunities and your trust; empower us to shoulder bigger responsibilities because I believe UMNO Youth today is not a Youth movement whose members are motivated by positions, power or projects but we are the bearers of hope, defenders of the land, catalysts of spirit and courage, loyal knights. Pasang lilin jalan ke taman Hari malam gelap gelita Pemuda bukan tamak jawatan Kami pejuang nusa dan bangsa Buah kurma berlambak-lambak Orang memesan sini dan sana Keris bertempur disapu minyak Pokok ditanam ditabur baja

25.In my maiden policy address as UMNO Youth Leader, I touched on the future of Malays and Bumiputeras. Of late, there have been voices asserting that UMNO no longer protects the interests of Malays and Bumiputeras. They allege that a preoccupation with national concerns has caused the Malay agenda to be sidelined. Other groups, who do not have to strike a balance between communal aspirations and national interest seek to capitalise by positioning themselves as heroes of the Malays.

26.In the midst of such concerns, I stand before you today to stress in no uncertain terms that the Malay and Bumiputera agenda will never ever be separated from UMNO and most certainly not from the UMNO Youth movement. The fact remains that UMNO was formed to struggle for the rights and voice of the Malays. As such, even with the passage of time and a changing political landscape, our principal struggle and heart of our politics still beat the same rhythm as our forebearers.

27.The question of whether UMNO is the one true platform to fight for the future of Malays should not even arise. Then, now and forever UMNO is the haven, the shield and UMNO is the party that will continue the struggle for religion, people and country.

28.The question that arises should not be about the aim of our struggle. Without being emotional, we must be bold enough to separate between purpose and method. We must understand the difference between the maqasid or objectives of a struggle and the manhaj or the approach employed to that end. The transformation needed does not concern the maqasid. The goal of elevating the Malays will never be forgotten much less cast aside. What needs to be changed is the manhaj or the way things have been done thus far.

29.Some may question, does the manhaj require changing? Is this not the approach that brought about all the successes we enjoy today? Specifically speaking, is it not the New Economic Policy that is the main source of Malay progress and Malaysia’s political stability today? Why should we seek for change, even if just to the manhaj and not the maqasid if the methods have proven successful for the Bumiputeras? Why fix something that is not broken?

30.Personally, I view the achievements of the NEP as something to be proud of. Apart from the economic progress, to date national harmony has been preserved due to the effectiveness of the NEP in alleviating poverty for all Malaysians irrespective of race, alongside restructuring society to eliminate the divide based on an identification of race with economic activity. NEP reduced the incidence of hardcore poverty in the country from 50 percent in the 1970s to 4 percent currently, while the figure for Bumiputeras fell from 65 precent to 5 percent.

31.The efforts of restructuring society through the NEP has produced a commercial and industrial society as well as a class of Bumiputera professionals. These successes cannot be denied. But for any policy – even that which has been so instrumental to the Malays like the NEP – there will be weaknesses. Moreover, any policy needs reexamination after implementation over a lengthy period of time so as to take into consideration and reflect changes over time.

32.On this issue, we need to be honest and not let emotions get the better of us. Let it not be that simply wanting to reexamine an approach or the manhaj of the agenda for Malays invites the charge of being a traitor. Let it not be that wanting to improve the efficacy of the policy or identify weaknesses in the implementation of NEP, leads to Malays being incited that the Barisan Nasional government apparently no longer cares about the Malay agenda. Neither should young Malays today be scared into thinking that Malays will, as it were, disappear off the face of the earth simply because the manhaj or approach to our struggle is modified for better achievements.

33.If we are sincere and truly want to achieve the maqasid – the objective, the aim – of our struggle, i.e. a Bumiputera community that attains progress and success through its own strengths and endeavour, then we must be bold enough to acknowledge whatever weaknesses there are in our approach. When the New Economic Model was announced, many expressed concern that the Malay agenda had seemingly disappeared as an obsolete notion that has no place in a borderless world. Malays felt threatened and immediately assumed we were under siege, to the extent that a well-meaning exercise to reexamine the implementation of policies was viewed with suspicion and seen as another attempt to chip away at the rights and special position of the Bumiputeras.

34.If all we are is defensive and all we are able to do is proclaim words seemingly to defend this or that, will the Bumiputeras continue to progress? Do Malays become special only by virtue of shouting about the Malay special position? Are we to believe that simply warning certain pressure groups against playing with fire, the Bumiputeras will suddenly succeed? Or in reality have we been led by our emotions to the point where we lost sight of the principal issue?

35.What we must do is acknowledge the weaknesses that exist and build a new concept that can elevate the status of Bumiputeras to a level we can be proud of. The NEP has certainly brought many successes but it does have its failings. Bumiputera equity has risen compared to the pre-NEP era, but at a time when economic growth was at its greatest in the 1990s when was ample space for redistribution of that newfound wealth, Bumiputera equity fell from 20.6 percent in 1995 to 19.1 percent in 1999. We further witnessed the increase in the ratio of Bumiputera to ethnic Chinese incomes from RM1.74 to ethnic Chinese for every RM1 to ethnic Malays in 1990 to RM1.81 in 1995.

36.During that period, we saw many Malay millionaires given great opportunities and brought to the fore through privatisation programs and ownership of shares via ‘pink forms’. Unfortunately, the shares allocated to Bumiputeras to increase the community’s equity position were sold because some wanted a quick buck, the luxurious bungalow, the Mercedes, the young wife more becoming of their newfound status. With the sudden riches that fell on their lap, they could not remain grounded. The gifts given in trust, that were supposed to be the means of assisting the rest of the community who had yet to benefit in any way, were in the end hoarded to became theirs alone. The immense greed that took over made them forget the greater good. The NEP’s aim to create many more successful Malay corporate tycoons following the success of the chosen ones, was left unfulfilled, due to the voracity that blinded them and preceded their responsibility towards their people.

37.These are but some of the leakages and problems that weakened the impementation of the NEP, the old manhaj. By right, with all the power and policies on our side, the Malays should not have to speak about the question of quotas today. For after so long, the Malays should already be able to stand on our own two feet and pass the 30 percent equity target, achieving income levels at par with other ethnic communities as well as successfully exploring high value economic sectors. Unfortunately, we have to admit that none of these have been achieved.

38.As UMNO Youth Leader, I meet many young Malays from all levels of society. When I speak of the NEP and the Malay struggle, they retort: “Pardon me, but what have I ever received from the NEP?” Their incomes are below the poverty line, many of them have migrated to cities where the cost of living rises faster than what they earn. These are Malays, Bumiputeras, but they have never enjoyed the fruits of the NEP. Their perception is that the NEP only enriches a few elite Bumiputeras with strong political links. For these youths, the 30 percent equity target does not mean anything because most of them never have and never will be able to purchase shares. This is yet another example of leakages where the NEP, which was rooted on the notion of prosperity for all, ended up being seen as an elitist policy resulting in many Malays sidelined and not looked after.

39.This reality demands that we make changes. We must be clear that the New Economic Model does not sideline the Malay agenda. What it does is update the implementation methods to overcome the weaknesses of the NEP. Why should we be afraid of an economic agenda based on merit? Why should we be concerned when those who have the capabilities, who are genuine, are given the opportunity to move forward? Are we so poisonously envious of our own people who work hard and are talented that we are willing to deny them of success? Are we like crabs in a pot, clawing one another down?

40.The new manhaj must be guided by merit and needs. Merit stresses on staying power and competitiveness. Merit means the Malay who has the ability, talent and high potential will be discovered, assisted along the way and given ample room to succeed. Merit also demands a level playing field so that the most innovative of farmers, the most diligent of traders, the most knowledgeable of professors and the most competent of contractors are provided with all the encouragement necessary without barriers in the form of political interests or the lack political connections. God-willing, with the inculcation of these new values and culture in the manhaj of empowerment for our people, the Malays will be better equipped to compete on the world stage, without the need for ‘crutches’ anymore.

41.The principle of need means that the poorest citizens with no hope of having their welfare met except by the government, are never left behind. For young people who feel they have not received the fruits of the NEP thus far, the New Economic Model must raise their status. The income gap, whether between or within any given race, must be reduced. There is no point in us talking about a high income nation if the rich get richer and the poor remain in despair. The New Economic Model guided by the principle of need will ensure all left behind by the old approach will be represented this time.

42.What it all boils down to, is about methods and goals. UMNO Youth is the hope of our people – then, now, forever. But what we hope for our people is real success and genuine advancement. We want to introduce a new narrative for Malays that is not only focusesd on defending rights, position and privileges. We need a bolder narrative to achieve unfulfilled success.

43.To be sure, a manhaj or approach takes root not without challenges from within. At times a new manhaj is questioned and takes a long time to be accepted. We should revisit a chapter in Islamic history which explains the vision and intellectual sharpness of Rasulullah P.B.U.H. in creating the manhaj for the spread of Islam in the Treaty of Hudaibiyyah. At that time, Suhail bin Amir, representing the Quraisy, rejected the proposal to refer to the Muhammad P.B.U.H. as Rasulullah or the Prophet of God in the treaty. Even with opposition from his companions especially Saidina Umar Al-Khattab and Saidina Ali bin Abi Talib, the Prophet agreed to the name Muhammad bin Abdullah. He also made the decision to postpone the journey to Mecca and accepted a number of conditions which gave the impression that he was conceding and capitulating to the Quraisy’s wishes to halt the Mukminin or Believers. The Prophet’s companions were ill at ease with his decision. But what is certain now is that his humility, dignity and wisdom was not only recognised by the Quraisy themselves but also opened the path to the dakwah that ultimately proved to be the key to the victory of the Muslims in opening up the city of Mecca.

44.Therefore, let us acknoweldge and recognise that the new narrative does not in any way change our purpose. What we need to emphasize is how Bumiputeras can be empowered, through the renewal of a Malay agenda that is more fresh and relevant. Today, we push aside the old manhaj that has not produced comprehensive success and embrace a new approach grounded on merit and need that will build Malay capability and capacity without impinging on the nation’s economic vibrancy. We want to produce more entrepreneurs, technocrats and professionals with self-reliance and who do not depend assistance and goodwill from the government, are independent, stand on their own strengths. We are not a subsidy race but a people with pride and self-worth. We want to internationalise our abilities so we are not limited by reliance on privileges and quotas within our borders, but can flourish and succeed on the global stage.

45.This new narrative is not limited to the Malay economic agenda. A new, more progressive approach will also result in a new political orientation. The community’s worries of late touches on the question of political power. There are those who opine that Malays will lose their political power due to the rise of non-Bumiputeras as the deciding force in elections. Those who hold to such beliefs recommend that Malays unite to ensure that power remains in the hands of the Bumiputeras.

46.I have no quarrel with a political unity of all Malays. In fact, UMNO Youth once welcomed the muzakarah proposed between UMNO and PAS. But I am also aware of the historical fact that Malays have hardly ever been united. In modern history, save for the opposition to the Malayan Union and the fight for Independence, the Malays are often divided especially by political beliefs and ideology.

47.This awareness is all the more relevant now that we see other parties, including PAS, respond cynically everytime the suggestion of this unity is raised. In fact, even on the core issues of religion and race, PAS is willing to rebuff the hand we sincerely extend to them due to their preoccupation with power – to the point that the haram becomes halal, and what is bad becomes good.

48.Though this does not mean I reject the possibility of us reuniting, we must accept the reality that today the Malay vote is split. There is no Malay party – be it UMNO or PAS – that can secure a hundred percent of Malay votes. In many areas, the Malay political split is such that 50 percent are on one side and 50 percent on the other.

49.This means that any side wanting to win, must win with the support of all Malaysians, regardless of race and religion. If we hope to rely on the Malay vote alone, we should be mindful that there are only 73 Parliamentary seats with a dominant Malay majority of 70 percent and above. Such is the reality.

50.We must learn from the results of the last General Elections where we almost relinquished power due to the loss of support from non-Malays. If we still subscribe to the illusion that we can win without their support, then 50 seats currently held by BN are in grave danger. If there is no concerted effort to practise an inclusive and moderate leadership, UMNO’s Malay leadership will disappear come the next election.

51.Most assuredly the main responsibility of winning over support from non-Malays lies on the shoulders of certain component parties. Whatever weaknesses they have must be overcome immediately and the responsibilities entrusted upon them must be vigorously carried out. But in the current state of politics – moreoever with the concept of 1Malaysia being our collective compass – Malaysians want to see a BN that can practise the values of camaraderie, justice and fairness. We do not wish to become political chameleons such as those in the opposition, who cannot be held to their word. The promises made to Malays one day are blatantly reneged the next when speaking to non-Malays.

52.At the same time, we should not take this inclusive approach on the moderate and wasatiyyah path to only be an instrument of winning elections. If it is simply a political tactic, the aims of creating a united and harmonious country will not be achieved. The politics of moderation or siyasah wasatiyyah must be our creed as the harmony amongst Malaysians is the key to collective peace and prosperity.

53.Allah SWT said in Surah Al Hujurat: 13: O mankind! We created you from a single (pair) of a male and a female, and made you into nations and tribes, that ye may know each other (not that ye may despise each other). Verily the most honoured of you in the sight of Allah is (he who is) the most righteous of you. And Allah has full knowledge and is well acquainted (with all things).

54.This is the call and guide for hablun minannas or relations among humans as promoted by Islam. It tells us that differences between people hold blessings and wisdom and it is our responsibility as vicegerents on Allah’s earth to preserve harmony and good relations between one and all.

55.Thus, are we in any way less Malay if our struggle cuts across race and religion, without sacrificing basic principles of our cause? Are we heretics for condemning attacks perpetrated by certain parties on people of other faiths? Are we traitors for disagreeing when non-Bumiputeras are labeled as settlers and squatters? The answer is a resolute no!

56.In the midst of us calling for Malays to be big-hearted and embrace the politics of moderation, the sensitivities of the Bumiputeras must also be recognized and respected. The recent insult to Islam in a clip on YouTube is a case of how our patience and resolve are tested. Article 153 of the Federal Constitution and the 30 percent equity target must be respected as the pillars and aspirations of Bumiputeras, which neither threaten nor take from the rights and belongings of other races. If there are calls for the existence of vernacular schools be preserved, surely the Bumiputera special position too should be protected and supported by all Malaysians. What of the feelings of Malays who find it so difficult to gain employment in private companies because they cannot speak Mandarin, a criteria advertised as a requirement by so many companies? Or look only at the 50 companies with the largest market capital in Bursa Malaysia; there is not one Malay CEO leading a non-Bumiputera owned company of this group. Are we to believe there is not a single Malay who qualifies on this front when there are many who succeed in managing internationally-renowned companies like Petronas and CIMB?

57.At the same time, we must also empathise with the feelings of the non-Malays – when they are referred to as pendatang or told to return to China or India; what of their feelings? This too is their country. This is their country of birth; in fact that of their parents and grandparents. What of the feelings of the poor non-Malay student denied government scholarship despite achieving outstanding results? We often hear of grouses about how the government administration is dominated by Malays. Are we to believe that there are but a few non-Malays qualified to hold senior positions in the civil service?

58.When we fail to understand and appreciate the feelings of other races, the barriers that separate us become higher and thicker. Young Malaysians live within the confines of their own ethnic communities. The young Malay who attends religious school, a Middle Eastern university and watches Malay programs on Astro Ria is alien to the young Chinese attending a vernacular school, a Taiwanese university and entertained by Wah Lai Toi. Each perpetuates mutual prejudices because of these barriers that exist.

59.The 1Malaysia concept needs to be held as a shared aspiration amongst all races. Community life in a multi-ethnic country certainly demands much patience and courtesy from everyone. We should not hastily pointing fingers at each other in the face of any issue, big or small. We need to understand the feelings of other people if we want them to understand ours. We all need to imagine ourselves in each other’s shoes, assume we swap places, switch fortunes, only then can we appreciate the universal truth that our shared humanity unites us more than it divides. Malaysians need to give and take between one another and this by no means entails one side only taking and the other only giving. Let the fate and future of this country, whether we fail or succeed, be determined together by us all.

60.Our perspectives – Malay, Chinese, Indian, Kadazan, Iban or any other ethnic group – are still influenced by communal and religious identities. Though these identities are important and cannot be separated from us, the national interest, the collective interest we share as Malaysian citizens should always be foremost. It is our responsibility to tear down the walls and barriers that divide us. Whatever differences there may be must not become obstacles to a life of mutual respect, understanding, striving together, united in spirit. Irrespective of our differences, as citizens of this blessed land, we pledge allegiance to the same King, we defend the same Constitution, we live under the same laws, we hold to the same values. As such, the aspirations, ambitions, national interest and collective harmony, the Malaysian spirit and passion must be our priority. For each and everyone of us, be it in this hall or out there, in the rural or urban areas, in new villages, estates or kampungs – for all Malaysians, this is where we make our home and family, this is where we forge our destiny, this is our country, this is our homeland.

61.This is precisely the Barisan Nasional tradition that has for so long succeeded in uniting us all, many races and religions but each of us Malaysian. We must convince the people of Malaysia that only Barisan Nasional can keep these promises.

62.The beat of the opposition’s drum begins with mountains of lofty promises. But more than 30 months since the 12th General Elections, that rhythm of promises is beginning to go flat. It is now clear that the opposition only talks a good talk but cannot deliver on those pledges.

63.The people are also getting fed up with the excuses and ploys, pinning everything bad and wrong on BN. What we have been witnessing is that their only uniting asset is the politics of blame or a politics that faults everything that BN does. The problems pertaining to religion, society, economics and unity – all are to do with BN. Are we to suppose that we will experience economic growth through this politics of blame? Will the people be united by the slurs and smears directed at BN? Is this country to be transformed only by slamming BN? Of course not; all that will result from these are chaos and disorder. The politics of blaming BN is actually a cheap tactic to mask their deficiencies.

64.In Selangor, the sand theft scandal not only harmed the earth and the people’s trust, but also laid bare severe weaknesses in the state administration. We only need to look at how fervently they denied the existence of such a problem during the initial period after news of the scandal broke. However, only after UMNO had exposed them on many fronts did they finally concede that the sand theft was real. Not only did they admit only after being caught trying to wiggle their way out of a tricky situation, the Pakatan Government in Selangor even had the nerve to ask the Federal Government to solve the problem.

65.The opposition does not walk its own talk. Look at the issue of support letters. Lim Kit Siang boldly urged that the practice of issuing support letters be ceased entirely but lo and behold, the support letters culture is evidently more chronic on their side as it is tainted with elements of triads, deception and misuse. In the last General Election manifesto, DAP made umpteen promises that the party would ensure safe, cheap and adequate supply of water. PAS, on the other hand, pledged to deal with the issue of rising living costs and prices of goods. But have they kept their promises and pledges? Clearly not. The reality is, in the midst of Muslims celebrating Aidilfitri, an A.I. Pakatan caliph- Lim Guan Eng presented a ‘festive gift’ by way of increasing water prices. The same gift was also presented to the people of Kedah.

66.The fundamental differences between Barisan Nasional and the opposition coalition are stark. For BN, our shared concept is clear, that is 1Malaysia. But one look at the opposition conjures up the image of Cerberus, the three-headed hound found in Roman mythology. Imagine how difficult it must be to have the misfortune of being a body to such a chimera – one head wishes to eat, another to sleep, the other to walk; chaos will surely ensue. Wait until the three heads clash, they will bite each other and tumble down.

67.Such monstrous politics is taking form. DAP will never share the same ultimate aspirations as PAS. Although some PAS leaders may say that the formation of the Islamic state is not a priority to please DAP, if we were to ask PAS Youth, they remain unwavering to this struggle. DAP, on the other hand, continues to be rejected by Malays who cannot accept their chauvinistic dreams of bringing down the pillars and fundamentals of this nation’s existence.

68.Then there is PKR who continues to be rocked by internal crisis due to their lust for power – chairs are flung, phantom voters even appear on the voters list and democracy is killed as the highest positions go to one family uncontested.

69.Any semblance of unity within the opposition coalition is nothing more than an act to ensure that the fragile bonds between them do not break, that the stench of the rot within does not reach anyone. The opposition coalition is in crisis and it is fraying; they lack ability in governing the states they control. Simply put, they are not fit to govern.

70.That said, we should guard against following in their footsteps by failing to boost our strengths and relying merely on the weaknesses of our opponents. We cannot stand idly and hope that the people’s support will come rolling in. We must work hard and strive in our jihad to save our country from the destruction of Cerberus, the three-headed chimera, before it devastates our country. Come what may, UMNO Youth warriors will chase Cerberus to the ends of the universe, to defeat these destroyers of the people and this country.

71.What is crystal clear is that the maqasid of our struggle hs never been diminished by the passage of time, it remains as it always has been. The same as when UMNO’s flag – the Sang Saka Bangsa – was first waved, the same as when the sacrosanct UMNO song was first sung and the same as when our forefathers first fought to uphold the agenda of the Malay struggle. The maqasid will never cease; it endures as a trust passed on from one generation of champions to another.

72.My fellow brothers in arms, recognize that UMNO’s strength comes from each of its members. History has shown that whatever tribulations appear, UMNO members from every corner of the country will rise up to the challenge to fulfil the charge and responsibility we bear together. Today, we are at a crossroads that will determine the future of our cause. This is the moment for us to stand united, based on a manhaj for our times and demonstrate our strength as UMNO members who can look any challenge in the eye and brave all trials and tribulations.

73.I ask you now, are you ready to be with me to fulfil the trust we inherited for the sake of future generations? If you are ready, stand with me and we will prove in Galas, in Batu Sapi, in the upcoming elections that this generation of UMNO Youth is resolute in mind and body, spirit and labour – we work hard, we strive, we give. With all that we have, let history remember us as the bearers of our struggle’s maqasid, who succeeded in radiating the torch and spirit of our cause for the sake of our common future. We will never retreat. Hidup UMNO! Hidup UMNO! Hidup UMNO!


http://thestar.com.my/news/story.asp?file=/2010/10/20/nation/20101020102839&sec=nation

Wednesday, 20 October 2010

Apathy could cost you 20pc extra income in retirement

Annuity rates have slumped alarmingly since the financial crisis and they have just keep falling.
The financial crisis has wreaked havoc on our personal finances, so much so that few areas have escaped.
Shares have been volatile, mortgages difficult to get, while savings rates have been at rock-bottom levels. Yet there is another area that has also been severely hit – annuities.
Annuity rates have slumped alarmingly since the financial crisis and they just keep falling. As at the end of March, a £100,000 joint life annuity for a man aged 65 and woman aged 60, with two-thirds spouse pension and level payments paid, would get you £6,080. Today, it would pay £5,749.
It is little wonder that people are delaying taking their annuity. According to Schroders, more than one in five were delaying taking an annuity because they felt the income returns were poor compared to other investments.
But the financial crisis is not the only thing contributing to lower annuity rates. The other main factor is how long someone will live. The trend is very much for longer lives, which has an adverse impact on rates. Increasing levels of impaired annuities (which pay people a higher income if they have suffered, say, a heart attack) mean that the "poor" lives are not subsidising the "good" lives as they used to.
Those in postcode areas where people live longer are also seeing a rate reduction.
It could also get a lot worse. New European rules could force providers to value annuity liabilities using gilt yields rather than bond yields as they do now. The result, experts predict, will mean an increase in capital requirements, which according to best estimates will reduce rates by between 20pc and 30pc.
The Coalition may have proposed to scrap compulsory annuity purchase but for the vast majority of people, this won't be an option because their retirement pots won't be big enough to pass over the need to lock-in an income level for life.
Yet buying an annuity is, arguably, the most important financial decision you will ever make. If you make the wrong choice it could cost you thousands of pounds in lost retirement income.
It is six years since the Financial Services Authority changed the rules to compel pension providers to inform customers about the open market option – the term given to the right to buy an annuity from any provider you choose.
The hope was that more people would scour the market for a better deal rather than accept the offer from their pension provider. But little has changed. The apathy is a major concern because people could boost their retirement income by as much as 20 per cent simply by shopping around.
One of the problems is that insurers have a vested interest in keeping quiet about the open market option because they do not want to lose business. They may have to tell customers that they can shop elsewhere, but they do not have to (and do not) offer comparisons to illustrate how good or poor their rates are against other insurers.
Add in the cumbersome process of buying an annuity from a company other than your pension provider – delays can leave you without pension income for at least a month – and you have another reason not to use the open market option.
Insurers reckon that most people do know they can shop around, it's just that they get a better deal from their pension provider. Yet financial advisers are not convinced – and
nor, it would seem, is the Government, which wants the industry to justify why the open market option take-up is low.
Advisers still believe that most people, to their cost, just grab the offer from their pension provider. Married people all too often opt for a single-life annuity when buying a joint-life annuity may be the better course of action, while most fail to consider the effects of inflation. Impaired annuities are also overlooked too often.
The golden rule is not just to take the first annuity that comes along. Check whether there are better rates on the "open market'' (look at the FSA's comparative tables on its website). And if you are in any doubt, take advice – annuity rates are not compromised by commission.
You have spent years grafting and saving for retirement. You owe it to yourself not to be hasty and simply tick the annuity box from your pension provider without a second thought.


http://www.telegraph.co.uk/finance/personalfinance/comment/paulfarrow/7975169/Apathy-could-cost-you-20pc-extra-income-in-retirement.html