What happen to the building after 100 years?

It is a vague inclination to suggest a value of a fixed asset such as building (commercial or residential) the appreciation of which has got value estimates varying from average or above average. Nobody would really understand the whole picture of a building when its value appreciates every year and the locality of the appreciation is much greater than the golden triangle neighbouring the KLCC Twin Towers and The Renaissance.

We are not to declare the asset since building is in its very nature built on a piece of land. Many citizens ranging from those who are no longer accepted as the citizens due to political or ideological stances, to those who are trying hard to become one, are categorised as naive in acknowledging the fact that a building must be erected from a piece of land. And that the land is of course must be the most suitable for that building because the appreciation of the building itself is relative to the value of the land itself.

In the balance sheets of corporations or even giant banks or shadow banks, the market value of the land if it is treated as an investment, must be appreciated and the difference of the value (from the previous year with the current year) is always an appreciation of such an academic valuation rather than commercial reality representation. What I mean is that the value of such an asset is only to be realised when the asset is being sold in order to gain cash. The decision to sell the asset is not in the hands of the owners as we can see many companies do not have concrete company's resolution to adopt the sale of the buildings and many of the balance sheet items are so badly treated as having multiple doctrine of alienation on its own. 

The further the land is being scrutinised, the more robust the value attached to it is going to become, since a few land lots are in actual fact reclaimed land lots and that some of the dwellers in the buildings are not aware of that fact. Therefore, should the land is to be sold in order to realise the value as cash term, nobody would declare correctly the true and fair price of the building let alone the land. Surprisingly some people are so happy to have the land as much as freehold or maybe 999 years lease. One person in particular would be shocked tremendously when someone from outside Malaysia is asking to purchase the land.

We are living in a state of anguish and uncertainty should everybody is asking to buy land everyday and that the price is volatile and does not represent the true and fair view of the financial standing of the owners and corporations. Kuala Lumpur for instance, is a new face city. New face in a way that everybody has got different face now when you go shopping or sightseeing or even trying to find who actually go shopping. No wonder the rich and famous Malaysians and Singaporeans do not really like to shop in Malaysia the reason being the new face is not their taste maybe. 

Be it as it may, the best way to value the land ammortization in the balance sheets of corporations or even banks is to find new face. That new face is either tangible or intangible in view of the above robust valuation for the next 100 years. 

No Money But Obstacles

THE title as stated above would become a horror movie to be depicted if the producers are made of bankers and of those who are financing the bankers ; what an epidemic Zika kind of virus which induces the birth of another scary movie should the author is to be determined by a bunch of high level bank officials and academicians.

As the budget nears its debate so close to be as scary as the above movie in its entirety, a commet is falling down from the sky unknown to the people who are still struggling to calculate how much year end bonus they are getting should there be a bonus and the futility is still foreseen by those who are indifferent whether their salary scale is favourable or horrible.

The commet is so invisible. And only 1 person who reads this blog can understand fully my writing and can even translate it into Thai and also Kelantanese dialect. And the commet is in actual fact a proposal to advise the Finance Minister and his subordinates on matters how to avoid lack of cash.

The proposal - How to avoid lack of cash:-

1. Never spend more than what you earn.

2. Be prudent in spending.

3. Observe the flow of income in cash and non-cash so as to gauge the optimum level of savings and easy realisation of assets into cash. The latter is quite cynical since you are not dealing in such assets as your business. Depreciation in cash term shall follow through so you may opt to have cash equivalent instruments if you need to gain cash therefore. Examples of cash equivalent instruments are as follows:-

a) Bank Simpanan Nasional SSP Bonanza Certs. Many people are so eager to win free Beemers and Houses here.

b) Gold

c) Small loans given to confirmed and reliable persons (scary though).

d) Selling used items such as books. (Car Boot Sales / Online )

e) Producing high quality poems and arts for publications.

4. To increase level and to expand sources of income. Businesses are very weak income generator for the novice and only the most stable people (emotionally and metaphysically practising proper risk-hedge techniques), may they generate income. Alas, employment in any particular company has got its limitations and drawbacks too. Whatever it is, the income must suit your needs and qualifications. Only by doing business can someone gain unlimited income and nobody can control that.

5. Always find yourself cash-rich rather than indebtedness-prone-rich. Never commit what you can't commit (not a type of commet of course).

6. Complete your biological and basic needs for good food, health, entertainment, education, spiritual in the most optimum level. Be open minded and do not associate yourself with nonsense and unprofitable or non-cash generating ventures with people who are making use of you.

The commet is now touching the grass at an elite golf club facing the sea. Nobody knows how to play golf if they are taught to play congkak and badminton or else playstations. Like I said earlier, only 1 person can translate my article and that person is the one who does not know how to play golf before.

MALAYSIAN BUDGET 2017 : A COGNITIVE REFRAMING?

1. The month of September has become synonymous with the month of ghost or some people quote it as the most hectic month for preparing the budgets for 2017. Everyone is talking about huge companies that need assistance (or in dire need of being helped rather) to be a going concern with basic principles of accounting concepts to match with the dividend policies for the shareholders. Nonetheless, the very nature of the business now has become so chaotic due to political battles, industrial espionage and of course, the pressure from the middle class citizens (including those who claimed to be residents, notwithstanding). 
2. It must be noted that an asset (fixed or current) - such as motor vehicle, building, computer, laptop, smartphone - can be classified as a source of fund and can be used to generate profits (cash and non-cash and its equivalent). If you are struggling to search for uninterrupted source of cash, regard must be had as to the level of income in cash term so as not to mess it up with non-cash income (i.e. debt or promises to pay you cash).
3. Then, calculate how much is needed as cash in hand so as to prevent deficiency at any point of time. It is better to have excess in cash and access to the cash itself shall not deter you from gaining any other income and thus steady level of savings can be observed. Uninterrupted flow of income (cash) is achievable should you get to know how to maintain the flows nicely and try not to risk that flow to non-cash, non-income and non-returning cash flow items. This buffer is always not cared for or provided for by many big corporations and even SMEs and thus chaos always sets in when the accessibility to cash is not foreseen immediately; worse still, if it is not sufficient at all.
4. Greater details in how to formulate the best level of liquidity are not to be mentioned here since different persons / companies will have different sets of balance sheets / statements of affairs facing them. Basic genuine key equation is to never spend more than what you earn (sales, proceeds, income generating revenue assets, capital gains, sale of shares - must be transparent and at arm's length transaction and must include off balance sheet event items including investments by related parties). 
5. The exact phrase to denote the above is never to indulge in indebtedness (when your money is in your bank) in order to become debt free and cash rich corporations. So far Malaysia does not have a complete blueprint agenda to establish cash rich corporations as far as her Vision 2020 is concerned. This would be a  major factor for your bankers to suffer sleepless nights and some of them would become instant insurance agents if the the companies do not need more financing or loans. As a result, some bank managers are still under appraisal pressure (in the Key Result Areas drafting)  to formulate the best ways to approach these companies/ persons by saying that cash rich companies are not healthy and obese. It is a very challenging job for the financial controllers indeed. 
6. As financial controllers (in Malaysia the Finance Minister - so many people wish to hold this very position today), try to save as much as possible and spend as much as needed bearing in mind the buffer and deficiency risk-aversion techniques. Even when debtors are promising to pay the companies/ persons, the latter will always seen as beggars asking here and there, the very cash which is extremely needed for companies/ persons. It is easy if we are not indebted to purchase our personal or business assets in order to avoid any encrumbrances against our assets and current / future income. 
7. Companies and individuals must be matured in their spending and cashflows. Inflow of cash and profits (not cash) must be observed with care and prudent spending is a must. The companies and the financial controllers must be humble and should never show their assets / money / wealth to the mass since many parties are not meant to be associated with them. 
8. If you are a Finance Minister, how much salary in real cash term you need (I am not talking about banking inclusion here due to data privacy reason) if you are given the chance to ask for it?

Hair-less-ness is not baldness

People are unanimously categorised by their hair volume at the time of writing. One cannot in actual sense discriminate people by their hair details. This is not necessarily a remark to downgrade people who are not having sufficient volume of hair, but the way people are categorised as having such scant amount of hair, for that hair is representing a conducive personal appearance for those who are dealing with them (as if the other parties do not have hair volume standard for themselves).

The above is not an exaggeration when we all are discussing about hair. Again it should not be exaggerated as a hair-raising article for those who are in media or even fashion industries. Financial and banking industries are still in confusion as to the optimum hair volume a particular person should maintain at any particular point of time : not to mention the colour (color), length and style therefore.

It is quite a near sensitive issue posed by many employers who are not comfortable when their staff are losing hair and  their level of confidence is at nadir when they chart their employees' level of satisfaction working in their companies. Office gossips and politics are generally intertwined and people are too sensitive to talk about someone's hairstyle in the office or in magazines or in public. It is advisable not to exaggerate when a few people who are in near-bald category are promoted to higher level positions. Again it is not advisable to exaggerate about hair in any place or in any way.

Some people would be sick for a few days when their hair volume and styles are pointed out in an informal discussion. The existence of hair expert centres, clinics or establishments to provide for hair treatment and growth facilities are to be seen as a positive undertaking by business ventures that are keen to counter the negative hair growth effects. It is imperative to mention that hair follicles do have their own nutrients supplied via blood vessels to the scalp. Does it mean that hair-less or near-bald people are giving their hair less nutrients for themselves and thus their hair?

Many people would ponder why majority of genius people do not have favourable hairstyles and again it is not good to exaggerate about hair in any place or in any way when some of them cover their hair to such an invisible way as cannot be seen by others. Be it genius or otherwise, those people are also uncomfortable to exaggerate about hair issue anywhere.

Be it as it may, people are gifted in many ways and forms. The imperfection does create harmonious environment when we do have respect to each other as human beings. Many people are sensitive even to a very small issue before them such as haircuts, hair scarves, turbans, hair colour (color), plaits, hairdo, hairdressing the quantum of which spreads from the public to first ladies and so forth as the continuum proceeds.

Standing in front of a mirror sheds an image of our personal appearances. Having less hair deteriorates motivation (as de-motivation does itself) of those who see them with less hair or no hair. Again, it is not a joke when someone talks about your hair, is it? Some people will accept with credible inclination to upgrade themselves, but to others, they would be in great despair as to quote that hair-less-ness is not baldness.

How Much is Enough?

Earnings by individuals in different continents have got certain correlation with the very nature of their occupations thus income either through banking transactions or cash or cash equivalent at hand.

There are many people who are striving to gain prestigious standard of living negating the foreign currency fluctuations should the Gross Income per person is to be derived. With foreign exchange factors added into the calculation of their income remitted to home-countries, surprising facts submerge in terms of their adequacy for injecting more funds into the home countries, or squeezing or liquidating more funds from the former.

Malaysians for example are migrating to certain rich countries to earn a living and thus generating income above the average as gained by professionals in government or private companies locally.

Notwithstanding anything like brain-drain or outflow of funds (for financial savvy professionals, the funds would be very challenging indeed to describe herein) to those countries, the investment to work in rich countries or countries which can make them rich rather, is seldom seen as a contributing factor to the Gross Domestic Products (GDPs).

People are obsessed with the inflows of money lured by their employers and pushing factors such as lower family income and the needs to increase income for the purposes which are essential to upgrading their living standards and savings for themselves are making the "brain-drain-as-terminally-ill-rigid-monetary-policy" comes into effect.

We can see that no such other countries like Malaysia has got her name in her flagship which carries so much weight to the attainment of Vision which in not so many years to come is so obscured in its totality to materialise.

Sources from the media or financial or even banking industries are not making any adjustments to their level of critical thinking forward, so much so that such a vision is as good as cannot be seen. What an utmost clear point of view, taking into account the scattering States' deficiencies in contributions to the Gross National Income (GNI) and also escalating inflationary effects, the rate of which has made nobody jump out of shock until someone from the higher echelon officer has got to pay RM70.00 for less-than-3-hours parking fees in the middle of the City.

I would rather call the economists as Professionals in Economics because Malaysia needs more than an academician to oversee fluctuating prices and thus costs of living of her nationals. This also applies to rich countries that are debt-ridden in Europe to such an extent that rumours have got the tendency to presume a particular Kingdom would be escaping from the Union. Quite a cynical and constructive point of view it is.

To hedge risks of such an enduring sentiment as stated above is to ensure confidence in the voting rights among the electorates in democratic countries and Malaysia has taken a step forward to appoint an "Economic Minister" as opposed to Finance Advisor to the Government. The post can be filled by someone who has got many visions perhaps not just anticipating with jargons or gigantic elephants or  other materials which can be construed as a twin tower or fruits portraits or even a submarine.

I would ask how much is the best  salary for such a Minister?

And for those who are working hard to earn a living, how much is enough to save during financial crisis and what are your suggestions as to the salary scale of our future Prime Minister and his cabinet Ministers?

Why are Banks retrenching staff?

All governments have a variety of economic objectives, such as full employment, economic growth and low inflation, which contributes towards, or are necessary to achieve, the ultimate economic objective of increased welfare and living standards.

A number of different types of economic policy can be used to achieve these objectives, including “monetary policy” and “fiscal policy” as any deliberate action undertaken by the government to achieve its economic objectives using the ‘fiscal’ instruments of taxation, government spending and the budget deficit. In much the same way, we can define monetary policy in terms of the deliberate action undertaken to achieve government’s objectives using ‘monetary instruments’, such as controls over bank lending and the rate of interest.

When CEOs of giant Banks are evaluated during yearly appraisals, their respective Banks are making such a huge quarterly profits plus liquidity ratios which Banks are supposed to maintain during the year under review. Nevertheless, not many CEOs are able to announce in their circular resolutions whether their respective Banks are retaining flamboyant number of staff or are hiding the numbers so as to complete the phrase of “no-retrenchments”.

Domestic businesses in Asia are slowing down due to economic uncertainties posed by the local currency devaluations against the greenback. This issue has made certain quarters who are earning a living working in the Banks and similar establishments to perceive the ‘profitability and liquidity’ of their Banks as a determining factor for staff retention. Many of the Banks’ staffs are asking for transfers to and from different Banks and competition among the Banks to retain the best cream of their staff are pushing the market values for the key officials skyrocketing as if inflationary effects have nothing to do with Consumer Price Index in their respective baskets of goods/ services. Quite a cynical point of view indeed.

The question here, internally, is the demand for money strengthening? Macro economics studies for the monetary policy instruments have sometimes been misconstrued as studying the demand and supply of money per se; speaking of which the liabilities and assets are divided into liquidity ratios which are making the Balance Sheets of different Banks have got different interpretations and assumptions to such an extent that the effectiveness of open market operations may not always be present at all times.

It is a weird situation when a Bank has got to find external funds to pay their staff and counter the effects of foreign currencies appreciation in their overseas investments. The net present values and internal rate of returns of all overseas projects are deemed to be projected and financed locally, but the margins are to be found elsewhere.

If you are the CEO of a giant Bank, how do you groom your best talented person(s) as your successor(s)?

The best smart-phone?

So many years gone by, the needs to purchase smartphones by many individuals have become the targets for technology seekers and hence the sellers to penetrate the market which dictate the highly demanded gadgets in hands.

Nothing can change the fact that every year, the competitive advantages of the companies producing the gadgets have created many job opportunities to many countries and the sources of income for importers and exporters globally.

Advantages in the use of the gadgets outweigh the blunders in using them. Without smart-phones, the blunders would become worse due to important messages cannot be communicated at the right time and that consumers  who are highly engrossed with the social networking media (instead of social media) to earn a living (especially those who are service-centred business communities who must have their handhelds 24-7) are at stake.

The above will inevitably become a nuisance if the smart-phones are found to be missing or the smart-phones themselves are experiencing slow-down period or malfunctions or hacked for various reasons by unknown or unscrupulous parties. Some telco companies are also in their research and development stage (R&D) in capturing large market shares (and thus inflows of income) in their drive to retain loyal customers and also to extend their clientele base.

Purchasers of smart-phones whether they are salaried people or business people have to accept that their use of smart-phones have become one of the distinctive factors in determining the programmes or softwares to be created for diverse groups of clients as such. High-end consumers need high-end smart-phones. Some of the rich and poor people are using smart-phones not based on their status in the society, but rather based on how well  (determined by their purchasing power) they can own or possess the smart-phones  either in the form of direct acquisition such as in outright purchase, easy-installment payments, leveraged-waiting-for-the-cheap-priced-phones-to-be-sold-by-desperate-consumers-due-to economic turmoil, or in the form of a gift (company’s party, birthday presents, lucky draws, some are found in public places).

Whenever we see a person holding any particular smart-phone (branded or otherwise), the first impression is that we basically ponder upon whether the smart-phone is owned by him/ her indefinitely or is it ‘descended’ from  someone who has got some hardship or pleasure in getting the phones at hand so to speak?

Not many purchasers are actually willing buyers in economic term;  the very need to purchase the smart-phone  is  such a neglected phrase so as to give way to the more aspiring term as found in a smart person’s smart-phone  generally.

Are you (and your smart-phone(s)) brilliant enough to counter the effects of diminishing income due to the risks of depreciation and downward (obsolete) technological factors of the gadgets?