Nobody likes to hear that their hard-earned money “invested” in EPF is earning pathetic dividend. I mentioned the word invested because your money was “forced” out from your pocket before you can even smell the aroma of the money and both of you (money and you) were cruelly separated on the same day you received your pay-slip. It’s another way to say that your money is working for you (does that make you feel better?) so that when you retire you won’t die a hungry ghost *really?*. And EPF is your custodian because it was deemed that all of you do not have the discipline in saving, let alone the knowledge to grow your money. So it was fair that the caring EPF took the huge burden of this responsibility. And we should be grateful to EPF because they know best on how to invest your money *grin*.
And so the EPF was performing exceptionally well from 1950s to 1980s - the highest dividend ever declared was 8.50% in the golden period of 1983 till 1987. Thereafter the dividend yield has been plunging from the roof. In fact the great era of dividend was fast losing its shine after the 1993 Super Bull-Run. We may never experience the 1993 Super Bull-Run again in many decades to come. Heck, the country has never recovered to the pre-1997 Asia Economic Crisis even until today and we’re already entering the recession again of which our politicians were saying otherwise. Did you notice how the Second Finance Minister Nor Yakcop panicked when asked by reporter about the rumor that EPF was about to declare dividend of only 4.5%? He was almost speechless and was mumbling directionless.
The Employees’ Provident Fund (EPF) Board declared a 4.5% dividend for 2008 yesterday for its members, lower than 5.8% declared in 2007. That’s 1.3% lower (than 2007) or 22.41% decrease year-on-year. As usual the blame was on the global economic crisis. However the fact remains that EPF recorded the highest ever earnings of RM20 billion in “gross income” for 2008, an increase of 9.36% over the previous year's gross income of RM18.29 billion. But the “net income” (surprisingly) for 2008 was RM14.26 billion, a decrease of 15.47% over 2007 net income of RM16.87 billion. It’s here where EPF needs to explain – why the 15.47% decrease in net profit despite the 9.36% increase in gross profit? The EPF earned RM6.67 billion from equities in 2008 compared to RM5.37 billion in 2007 so the blame cannot be on stocks investment. So which part of the overall investment portfolios went wrong?
- Gross income: 2007 = RM18.29 billion ; 2008 = RM20 billion (9.36% increase)
- Net income: 2007 = RM16.87 billion ; 2008 should be = RM18.45 billion(9.36%)?
- But now 2008’s net income = RM14.26 billion, short of RM4.2 billion?
The above is of course the dummy way of deriving where the money has gone. Assuming the cost of doing business is the same the above average-Joes calculation reveals more than RM4 billion has disappeared into the thin air. If not what expenses or losses equal to this amount has EPF incurred? This is not RM4 million or RM40 million but a whopping RM4.2 billion we’re talking about here. EPF acknowledged that it was doing fine up until September last year but not thereafter. Could that same amount of money loaned to Valuecap Sdn Bhd (RM5 billion),coincidently occurred at the same period of time, was written off from the accounting book hence the EPF members are getting only 4.5% dividend?
In short, can we assume that the 12 million members’ “dividend money” was used for Valuecap’s so-called equity investment programme? Can the members’ hard-earned money loaned to Valuecap be returned to the rightful owners thereafter then, together with interest of course *boy, I am stupid for asking such question*? You can’t simply take away contributors’ money, presume everything is in order, everyone will forget about it after some grumbling and blame it on global financial meltdown, can you? For God’s sake, we need to have some transparencies here because the money is our only retirement fund. No matter where the money has been siphoned to (if any), EPF contributors are still the victims (or rather suckers) ultimately. Let’s hope the EPF’s total investment funds of over RM342 billion (as at Dec 31, 2008) still exists and this is not another big-time Ponzi-scheme *grin*.
Sure, Citigroup Inc. (NYSE: 
Clearly this old man is not senile given that fact that he acknowledged the backdoor takeover of Perak State by his endorsed PM-in-waiting Najib was not done according to the law. Mahathir also said "UMNO-BN was too careless and did not wait for an assembly but instead asked the Ruler (Perak Sultan) to sack the menteri besar (chief minister)". It may be strange that he only opened his mouth after a month since the takeover occurred which led to the current constitutional crisis. Maybe Mahathir did not anticipated that the Pakatan Rakyat government would fight this battle to the end no matter what, not to mention the “coup” backfired with many Perakians are disgusted with the way it was done. So he decided to go with the trend and said UMNO-BN should have "followed the laws of the country, especially the constitution." But his opinion opened up some questions.
In spite of what many think could be the reason why Mahathir went berserk whacking his own-picked successor Abdullah Badawi, the actual reason is none other than that Badawi did not keep his promise to push Mahathir’s own son to become the next rising star – UMNO Youth Chief. Instead Badawi allowed his son-in-law Khairi the free hand not only in running his administration but also to groom him as the next UMNO Youth Chief, indirectly telling Mahathir to fly kite. And this really sent Mahathir’s blood pressure to record high. In reality UMNO is rich with corrupt leaders but only a handful (if you can call that in the first place) of sincere leaders who can put country’s interest above self-interest. Mahathir is barking up the wrong tree and definitely beating around the bush if he thinks Najib would or could announce a corrupt-free team of Cabinet. There simply aren’t enough candidates for such tasks and the old man knows it. Maybe his statement was meant to raise warning to Najib that certain individuals are plotting for his son’s failure in the coming Mar UMNO election and Najib should do something about it.
If you sign up for the i-Value 4 package (RM375 monthly commitment) over a 24-month period *ouch* 
Rate Plan Terms & Conditions :
Stumble it!
Now do you know why I keep on screaming “Cash is King” and “Preserve your Cash”? Don’t you feel good looking at your escalating buying power now? And
According to a report by ADP Employer Services private sector job losses increased in February with private employers cut 697,000 jobs in Februarycompared with 614,000 jobs lost in January. Economists’ estimation for February job losses were 610,000. President Obama on the other hand is hoping that his plan to help up to 9 million home borrowers via refinanced mortgages modified to lower monthly payments will bear fruits. Obama also intend to revamp wasteful spending especially the way federal contracts are being awarded. It was hoped tens of billions of dollars could be saved when the procurement process are to be refined.
Second remembrance of the month – fresh state election could be around the corner in Perak state. In a historic move an emergency meeting of the Perak State Assembly was convened this morning with three motions passed, under a tree about 200 meters from the state secretariat building:
I believe after this many gamblers and 4-D punters will build a shrine under this tree hoping to strike it big as this is the first time in the country’s 50-year of independence that a state assembly is being held under a tree. The writing is on the wall and constitution that the Speaker (the person they forgot to buy over) of the Legislative Assembly of Perak is entitled in law to convene the Legislative Assembly for today, March 03, 2009. However the police who only serve the present government that is tainted with corruption has proven to be a reliable business partner yet again *applause* – desperately set-up road blocks and barred the main entrance of the state secretariat building to prevent the proceedings by state representatives voted by the people.
And according to constitutional expert Tommy Thomas since the Third Sitting of the First Session of the 12th Legislative Assembly of Perak was actually “adjourned” (postponed) sine die in November 2008, the Speaker has the right to recall the assembly into session. Hey, don’t blame the constitutional experts and the written laws because it was the previous BN government that granted the Speaker with such power. So why play the pathetic childish dirty game of crying for the police to block the proceedings and dragging the Ruler into the picture? Thankful they didn’t asked the same street gangsters UMNO Youth to set-up road blocks and take over the state secretariat.
This episode may be the 
Of course you can bet your last dollar that Najib will not open his big mouth again claiming something which even the first year economic students think otherwise, at least for now. After Citigroup and Nomura Holdings said Malaysia will see economic contraction of 1.5% and 4% respectively this year, RHB Head of Research Lim Chee Sing say the country is already in recession or perhaps is entering the recession depending on your definition of it. Malaysia’s export and industry production index have both contracted for the third month and if this is your measurement then the recession has already entered your door.
Equally sad is to have chief commissioner of the newly cosmetic-upgraded Malaysian Anti-Corruption Commission (MACC), Ahmad Said Hamdan, who thought it was perfectly alright for his son to import child pornography into Australia as he believes it was comparable to just a minor traffic offence. As long as you pay the summons then the story should ends there *and commit the same offence again?*. Also the chief commissioner does not think he should be linked to his son’s (child pornography) offence as if he didn’t play any part in his son’s upbringing. But the most puzzling yet amazing part was he actually endorsed his son’s action when he exclaimed that his son’s disgusting child pornography could be found on most men’s cell-phones. Now this is what I call a pervert mentality and I dare not imagine the contents of his hand-phone. He could have video clips that if revealed, would be more explosive than former deputy