Quotes from the WSJ: 23-15 Jan, 2009.
- China needs its consumers to sepnd. Actually getting that to happen is another story.
- China's boom has stalled; 4th quarter's growth slid to 6.8% well below the double digit level.
- Yet Beijing response so far has been to beef up the government's role as a consumer, notably through a nearly $600 billion fiscal stimulus plan. But that wont incentivize Chinese consumers to spend more nor offset a decline in spending on china export destination struck but the recession such as America and the Europe.
- With Chinese households holding a collective $3.3 trillion in savings but debt of only $835 billion, China has the opposite problem to the U.S.-and excess of savings instead of too much debt.
- Andrew Peaple
So, Beijing will have to do more and response promptly to the situation. Andrew suggests China follow other Asian nations in offering shopping vouchers, particularly to urban residents. Lower income taxes may not help that much effect since many Chinese are exempt already while others find ways to dodge payments.
Lower interest rate also doesnt help, with evidence in the past, Chinese residents save diligently in 2007 despite the low interest rate.
The more Chinese save, the worse the recession will be.
Saturday, January 24, 2009
Thursday, January 22, 2009
Tourism industry applauds Kuwait deal
Cambodia really need to tighten its security in order to boost visitors. Robberies, gangs, scams ... which lead to fears from foreign visitors and even Cambodian residents, happen everyday without any reliable attention from the officers.
It is often said that the cops are the accomplices, they share benifit with the criminials. And if they catch the criminals the court might release them or just give a very light sentence in exchange for a ransom. Corruption and nepotism are the main reasons to the insecurity. That is what the government should focus! Most people even said, Cambodian government are obviously not serving cambodian people but instead living on cambodian blood.
Nepotism should be avoided. Who doesnt know that most of the gangster rich kids are those whose fathers/relatives are the government officers?
Cambodia is also losing its man power, most inteligences/scientists.... well-educated people have fled abroad because they distrust the government.
Wake up Cambodian people(government), stop hating people who diss you, look into yourself and put yourself in others' shoes.
I am not trying to be cool or anything, but I have to do what I want to, and what I am supposed to do. I hope opinion can be heard, freely.
If they happen to read this, I hope they take it as a constructive critisism.
The Phnom Penh Post
It is often said that the cops are the accomplices, they share benifit with the criminials. And if they catch the criminals the court might release them or just give a very light sentence in exchange for a ransom. Corruption and nepotism are the main reasons to the insecurity. That is what the government should focus! Most people even said, Cambodian government are obviously not serving cambodian people but instead living on cambodian blood.
Nepotism should be avoided. Who doesnt know that most of the gangster rich kids are those whose fathers/relatives are the government officers?
Cambodia is also losing its man power, most inteligences/scientists.... well-educated people have fled abroad because they distrust the government.
Wake up Cambodian people(government), stop hating people who diss you, look into yourself and put yourself in others' shoes.
I am not trying to be cool or anything, but I have to do what I want to, and what I am supposed to do. I hope opinion can be heard, freely.
If they happen to read this, I hope they take it as a constructive critisism.
The Phnom Penh Post
| Written by Chun Sophal | |
| Thursday, 22 January 2009 | |
Cambodia's travel industry applauded a recent agreement to allow direct flights to Kuwait, saying the move could give a much-needed boost to the sector. "Kuwait is a rich country and we look forward to seeing more visitors from there," said Ho Vandy, president of the Cambodian Association of Travel Agents. "I know that we will receive a lot of tourists from this country," he said. The Cambodian government said it would send a team to Kuwait to design a promotional campaign to attract visitors. "Next month Kuwait will have direct flights to Cambodia and, under this new agreement, we expect to see 50,000 tourists this year and 100,000 next year [from Kuwait]," Minister of Tourism Thong Khon told reporters after returning from Kuwait Friday. Only about 700 Kuwaitis visited Cambodia in 2008. Cambodia has seen a flood of investment from the Middle East, mainly from Kuwait and UAE, with Israel's first trade and investment delegation planned in March. |
Monday, January 19, 2009
SRP calls for govt bailout
| SRP probably has come to read my blog. lmao!! XD Written by Sam Rith and Sebastian Strangio | |
| Monday, 19 January 2009 | |
| Rainsy claims thousands of jobs lost in financial crisis. OPPOSITION leader Sam Rainsy has called on the government to set aside a US$500 million economic stimulus package to offset the local effects of the world financial slump, claiming "tens of thousands" of Cambodian jobs have been lost to the global crisis. In a letter to Prime Minister Hun Sen, Sam Rainsy said the government was underestimating the effects of the global upheavals, petitioning the prime minister to organise a $500 million relief package to go towards maintaining agricultural prices, building much-needed infrastructure and making low-interest loans available to the needy. "I would like to request the government to consider the appropriate measures in order to support economic activity and help Cambodia avoid the worst of the economic crisis," he said in the letter, which was delivered to the premier by National Assembly First Deputy President Nguon Nhel on Saturday. Sam Rainsy added that the national budget for 2009 contained no means of relieving the economic impacts of the global crisis. Kem Sokha, president of the Human Rights Party, said the financial crisis was having serious effects in rural areas of the Kingdom, where falling commodity prices had driven down standards of living. "Many Cambodian people in the countryside are having problems with reduced food. This is affecting the health of the people," he told the Post. He added that the garment sector had been hit hard by the global downturn and that many willing workers were being turned away. "Now there is reduced work, and they don't have enough money to live," he said. "I think every country should have the funds for an economic crisis." But Information Minister Khieu Kanharith said the government reserved funds in every annual budget for unforeseen circumstances. "We have a reserve budget, not only for the global economic crisis but also for other disasters such as floods, and so forth," he said Sunday, but added he could not remember the exact amount set aside in 2009. "Sam Rainsy should be able to address this. He is a parliamentarian, so he must know about it." |
Monday, January 12, 2009
ACLEDA Bank Receives Financial Contribution
December 19, 2008
Signing ceremony for the financial contribution for the support of the ASEAN Regional Microfinance Center
Phnom Penh — December 19, 2008 — ACLEDA Bank Plc, Cambodia's leading retail bank which has total assets of US$677 million and capital funds exceeding US$85 million operating in 220 branches and offices in every province in the country, has announced today that it has received a financial contribution in full of the equivalent of EUR610,000 in US$ as non-payable funds from the KfW (German government-owned development bank, based in Frankfurt). This financial contribution will be used for the support of ASEAN Regional Microfinance Center which will be functioned and managed by ACLEDA Bank Plc, especially for financing of equipments, fellowship, international consultants and capacity building faculty staff.
Mr. In Channy, President and CEO, said that "it is a great honor for our country especially ACLEDA Bank Plc which is selected as a project-executing agency for ASEAN Regional Microfinance Center. This center will be open to policy makers, practitioners and staff from Microfinance Institutions and Banks in the ASEAN region". "The center will seek accreditation from an internationally recognized university and could form a platform to develop a Microfinance MBA at later stage in collaboration with such university." he added.
Source: http://www.acledabank.com.kh
Value investing
| Written by Trevor Keidan | |
| Monday, 12 January 2009 | |
| Opinion By Trevor Keidan Ignoring 'market noise' Ignore the noise coming from Wall Street - and the other stock exchanges - if you want to achieve success with your financial planning. Some of the world's best-known investors pay (and have paid in the past) little attention to the pundits and analysts on Wall Street. Instead, they have chosen to go it alone, placing their trust in themselves, their choices and their own analysis. The world's best-known investor, Warren Buffett, is famous for his "value" approach to investing. He is quoted as saying, "It's not risky to buy securities at a fraction of what they're worth." If you were to summarise Buffett's approach to investing, it would be that he buys good companies at cheap prices. The man who is widely considered to be Buffett's mentor is Benjamin Graham - author of the books The Intelligent Investor and Security Analysis. His approach to investing is stated as follows: "An investment operation is one which, upon thorough analysis, promises safety of principal and a satisfactory return. Operations not meeting these requirements are speculative." Graham drew a very real distinction between investors and speculators. He considered much of what was happening on Wall Street to be speculative. Graham believed that by buying stocks, real investors are buying a piece of a company - not just names on an exchange. It's another point well worth remembering today. Also worth remembering is that the stocks and indexes around the world are driven up or down by a number of factors. Such factors include market sentiment (optimism and pessimism) as well as buying and selling that is brought about by those performing technical analysis. With market sentiment and technical analysis driving the markets and the price of company stock, it is easy to forget that the names of the companies on the exchanges are actually real going concerns that are actually doing business in the real world every day. Real investors such as Buffett and Graham remember this and so should we, especially in today's volatile markets where fear and greed seem to be getting the better of many. In his book The Intelligent Investor, Graham put investors - such as ourselves - into two distinct categories. He labels investors as either defensive or enterprising investors. According to Graham, a defensive investor is one whose investments are set up in such a way as to try to avoid serious losses while requiring the least effort. An enterprising investor, on the other hand, is prepared to devote effort and time to picking and monitoring investments. Most of us would probably be considered by Graham to be defensive investors. As defensive investors, today we have a lot of choice. There are myriad funds out there that are suitable for those of us who do not have the time or inclination to put in the effort required to choose a portfolio. These range from specialist funds to those tracking almost every index. However, it is advised that the defensive investor who feels ill equipped to make investment choices seek professional advice at the start of the process - and then perhaps once a year - before any changes are made to the overall portfolio. Having said this, it almost goes without saying that investors should choose their advisers wisely to make sure that the advice matches the investor's objectives and attitudes to risk. In addition, one way to avoid the noise from Wall Street (and the other exchanges) is to implement the practice of dollar-cost averaging - which, as we know, is the practice of paying a uniform monthly amount into an investment plan. In doing so, the investor is able to stay invested in the market while guarding against periods of financial uncertainty. In addition, by setting up regular monthly payments, investors are reasonably assured of a low-maintenance investment plan. Such a plan - as past experience dictates - should reasonably be expected to reap positive results over the long term. So if you want to stay focused - and invested for the future - know why you're investing and block out the noise. Your Money Matters! _____________________________________________________ Trevor Keidan is managing director of Infinity Financial Solutions, a firm providing impartial, tailor-made personal financial advice to clients in Cambodia and Southeast Asia. Should you wish to contact Trevor, please send an email to tkeidan@infinsolutions.com |
Thursday, January 8, 2009
Foreign Lenders cash out in China
The bank of america corp. has decided to trim it stake in China Construction Bank, raising $2.8 billion. Other cash-hungry foreign banks are expected to follow as well. That can be seen as a signal of more trouble for Beijing's strategies using foreign expertise to build a world-class banking system.
for more detail read the WSJ dated 08/01/09.
for more detail read the WSJ dated 08/01/09.
The delay of Cambodian stock market might worsen the property market
A few real estate businessmen and economists in Cambodia forcast that the freezing in Cambodia property market might linger due to the delay in the opening of the stock market (recently announced by the so-called Hanoi Phd P.M. Hunsenf), because it might cause people to distrust the governent and lose confidence in the property market and hence hesitate to invest. ( Everyday.com dated 08/01/09). It can be blamed as well to the incompetent government who cannot afford to offer a rescue package like other countries. Litterally!
Countering the above arguments, some economists argue that rushing to open the stock market might put the country at stake due to speculation. Moreover, most cambodian people bear no knowledge about stock market, and thus they would be hesitant to invest in the stock market.
Looking at the exeriences of other developing countries including South Korea, the stock-bond market started working recenlty, even it was established long time ago. (Ilho YOO, 2006 Fiscal Balance Forecast of Cambodia 2007-2011).
Considering this, the Cambodian stock market wont be likely to function in any time soon. Poor Cambodia!
Countering the above arguments, some economists argue that rushing to open the stock market might put the country at stake due to speculation. Moreover, most cambodian people bear no knowledge about stock market, and thus they would be hesitant to invest in the stock market.
Looking at the exeriences of other developing countries including South Korea, the stock-bond market started working recenlty, even it was established long time ago. (Ilho YOO, 2006 Fiscal Balance Forecast of Cambodia 2007-2011).
Considering this, the Cambodian stock market wont be likely to function in any time soon. Poor Cambodia!
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