Live on Radio! Malaysia in Recession or Not?

I'm going live on Radio 24 on Monday, 2 February 2009 from 12 noon to 1 pm with host Anita Pandian.

Among the things I will be sharing are tips on overcoming the current tight economic situation and how SMEs in Malaysia (and the region) can take immediate actiohttp://www.blogger.com/img/blank.gifns to mitigate the risks to our businesses.

Will also discuss unemployment among youths as that seem to be a topic Radio 24 says readers want to hear. Hmmm. Sure.

Those in Klang Valley, tune in to 93.9, and those outside, visit www.radio24.com.my for streaming audio.

How Not to Scr*w Up Your Business

All businesses have a life cycle. They are created, grow, mature and unfortunately in some cases fail and disappear.

You would have heard of the oft-quoted truth of businesses - 90% fail in the first year. And less than 1% survive beyond the life of the founder.

For the 10% of you who survived the first year, you have my congratulations. The next step really is what this posting is about - how NOT to scr*w up your business.

Many entrepreneurs have a habit of experimenting. That's good in many cases, but can also lead to highly undesirable results. If your business have survived its first year, chances are, you have done something right. It is going to survive a little longer, if you DO NOT end up scr*wing it up now.

I can't tell you how to scr*w-proof your business. But generally, leaving the good bits alone will do the trick.

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For more on how NOT to scr*w up your business, get a copy of SME Magazine February edition.

Is Obama Good for Business?

[this article appear in the February issue of SME Magazine]

We extend our heartiest congratulations to Barrack Hussein Obama, the 44th President of the United States. Many of you would have seen his inauguration live on CNN, CNBC or one of the many stations worldwide. Many more would have followed his meteoric rise from a little known senator to the most powerful man on earth.

What does having the first African American in the White House mean to the millions of small businesses outside the US?

Faced by an economic adversary in the form of Mainland China, who is strong enough to put it in fear mode, the US is likely to assert even more pressure on China. Obama has already declared his intention to ‘make China play by international rules’. This includes pressuring China to strengthen the Renminbi to make exports more expensive and adding costs to production by virtue of ‘promoting greener environment’ and ‘human rights’ a.k.a. increasing wages. What this means to Asian businesses is: the cost of doing business with China, and by extension, cost of any business will rise under the Obama administration.

As a Democrat, it is wishful thinking that Obama will do even more for businesses in the US. He’s already threatened to reverse tax cuts for the wealthy (read: businesspeople) and promised to spend more money on the poor. While this populist move may serve him well, it means tougher times ahead for businesses, inside and outside of the US, even if he managed to turnaround the US economy as promised, despite the foreseeable hurdles he would have to overcome.

CHALLENGES AHEAD FOR OBAMA ET. AL.
When I hear Obama downplaying his promises on his inauguration day by saying ‘the challenges we face are real… they will not be met easily or in a short span of time’, I couldn’t help but smile. Another talking head. Another politician. So, who’s doing the real work?

But I don’t blame him. In the great democratic nation called the US, the President and his policies are subject to ‘legislative oversights’ and other bureaucratic approvals. And he’s proposing not one, but many changes. Even if you could believe that these are genuine changes and not some self-serving policies, it will still take years for some of these changes to be legislated. In the absence of concrete, structural changes, we can only expect even more ‘quick fixes’ in the short run, including more protectionism, and one-sided trade policies. Will these be good for us? What do you think?

ROOT CAUSE OF THE PROBLEM
We are now aware that one of the main causes of the current financial turmoil is the mindless promotion of home ownership by American politicians especially Democrats. So fluid are the arguments that people who can’t afford a home loan are offered one by banks. And when the bubble burst, as it was bound to, the blames went to Republicans and ‘their banker cronies’.

The Clinton administration investigated Fannie Mae for racial discrimination and proposed that 50 percent of Fannie Mae's and Freddie Mac's portfolio be made up of loans to low - moderate-income borrowers by the year 2001. The Clinton administration criticised the mortgage industry for looking at "outdated criteria," such as the mortgage applicant's credit history and ability to make a down payment. Threatening lawsuits, Clinton's Federal Reserve demanded that banks treat welfare payments and unemployment benefits as valid income sources to qualify for a mortgage. This isn't a joke - it's a fact.

We all know how Obama is going to spend the trillion dollars to ‘rescue the economy’. With deficits running in the hundreds of billions, one wonders where the trillion dollars will come from. Some printing machines of course! In my first year in economics class, I learn that when you have too much money lying around, it will inevitably lose its value. Prices of goods will go up. Those trillion dollars will create an inflation like never seen before. I’ve sold ALL my US dollars a month ago, despite my bankers telling me that the Ringgit will weaken further against the dollar. No time to be a hero.

FINANCIAL TURMOIL IS GOOD FOR US
I have always held the position that the current financial turmoil that has hit Wall Street may not be bad for us in the long run. In the short haul, of course we will all feel the credit crunch, and for those of us who export to the US, cancellation of orders. It’s painful. It hurts. But it is also good for us in the long run.

More than the US, it bodes well for our awareness of the ‘leakages’ in our financial system. And also questions our over-dependence on the US as a source of finance and reference. Even more importantly, it taught us to be prudent, not to spend money we don’t have, and to conserve, conserve and conserve! Have you wondered why the richest men on earth, tend to be misers?

Hope? For Americans perhaps. Change? Not necessarily for the better for us outside the US. For our sake, I hope I’ve read this all wrong. In the meantime, I’m tuning off CNN and sticking to the Cartoon Network, where at least there’s some semblance of reality.

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PS: If you haven't had a chance to read SME, pick up a copy from your nearest news stand.

Best Spas and Wellness Centres in Malaysia announced

The Hong Kong-based Asia Spa & Wellness Promotion Council (ASWPC) have just announced the winners of the Malaysia Spa & Wellness Awards 2008. As I am the Chairman of the Council, I was asked by the committee to accompany Datin Seri Paduka Rosmah Mansor, wife of the Deputy Prime Minister of Malaysia and Datuk Dr Ong Hong Peng, Secretary General of the Ministry of Tourism to present the awards. It was tiring, but seeing the smiles on the faces of the recipients were worth the efforts.

Below, I append the Press Release:

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Best Spas and Wellness Centres in Malaysia Announced
30 Spas, Wellness Centres and Spa Product Brands Honoured in Oscar-styled Ceremony

KUALA LUMPUR - In a star-studded ceremony reminiscent of the Academy Awards, 30 spas, wellness centres and spa product brands were honoured with the Malaysia Spa & Wellness Awards 2008 at the Sime Darby Convention Centre.

As each Award was announced by master of ceremony Datuk Jalaluddin Hassan, the whole ballroom roared with applause from both winner and nominees alike.

The much awaited Awards, dubbed the most prestigious awards for spas and wellness centres in Malaysia are organised by the Malaysian spa community, led by the Asia Spa & Wellness Promotion Council. The Awards were presented by Datin Paduka Seri Rosmah Mansor, wife of the Deputy Prime Minister. Also present at the packed Awards ceremony were Datuk Dr Ong Hong Peng, secretary general of the Ministry of Tourism, Datuk Dr. Victor Wee, advisor in the Ministry of Finance, Datuk Ilyas Zainol Abidin, president of Malaysian Association of Hotels and William Ng, chairman of Asia Spa & Wellness Promotion Council and organising chairman of the Awards, and representatives from spa associations across Asia.

The winners were selected from a pool of 152 nominations, and were judged by a panel of independent judges comprising spa personalities, travel and lifestyle magazine editors and celebrities. The grueling nomination and adjudication process took over two months, and comprised of mystery visits and spa audits. In deciding the winner, the judges took into consideration both the ‘hardware’ component – ambience, design and equipment, and ‘software’ component – therapist skills and qualifications, treatment menus, and service quality.

Among the big winners of the night were YTL’s Spa Village group, which took home four awards and Shangri-La Hotels and Resorts’ CHI Spas with three awards. Local entrepreneur Mona Din, founder of the Serenity Spa group and Leesa Formula brand was named Spa Personality of the Year. Mariana Ibrahim of CHI Spa in Shangri-La's Rasa Sayang Resort & Spa, Penang, a spa industry veteran was named the Best Spa Therapist.

Awards Chairman, William Ng said that the Awards proved that Malaysian spas have come of age, and are now operating at an international level.

“The judges were impressed with the overall quality of nominations and submissions this year, and had a difficult time choosing the winners. The general consensus is that the winners have all displayed standards consistent with the best in the world”, Ng said.

He added, “Since the introduction of the Awards in 2006, the industry has rallied behind this momentous annual event, and the Awards have raised the bar for the spa and wellness industry. At the same time, we are seeing greater recognition locally and internationally for our spas, which bodes well for our quest to become a regional spa destination”.

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About the Asia Spa & Wellness Promotion Council

The Asia Spa & Wellness Promotion Council, or ASWPC is the regional coordinating body for the promotion of spas and wellness centres. We assist national and regional organisation in promoting spas and wellness centres inter- and intra-regionally to an audience of wellness tourists, health practitioners and other stakeholders.

Our credo:
1. Uphold the professionalism of the spa & wellness industry at all times
2. Promote sustainability and respect for the environment in all we do
3. Treat all practitioners and stakeholders as equal

About the Malaysia Spa & Wellness Awards

The Malaysia Spa & Wellness Awards is an annual Awards ceremony organized collectively by and for the spa and wellness community in Malaysia. The Awards is endorsed and supported by Tourism Malaysia, Malaysian Association of Hotels and the Asia Spa & Wellness Promotion Council.

The Organising Committee comprises spa owners and directors, and travel, lifestyle and business media.

For more info, visit www.spawellnessawards.com

Unemployed Youths

The JobStreet.com MCTF + Post Graduate Education Fair just concluded. Some 88,000 visitors came and tried their luck at getting a job. Many of these were of course looking to pursue further studies.

Many who came were unemployed graduates. Some have been trying for up to a year since graduation with very little luck.

Then again, luck plays very little role in job hunt. There are specific reasons why our youths don't get employed:
1. Can't speak English
2. Can't write English
3. Can't calculate
4. Too choosy of jobs
5. Too demanding with pay
6. Too lazy to prepare for interviews

If you are an employer, you would have points to add to this list. If you are an unemployed graduate, read these points, stop finding excuses, and CHANGE! If after spending 10 - 12 years learning English you cannot speak or write proper English - don't blame the education system. Ditto for calculations.

It's the sad truth. If you've scr*wed your parents hard-earned money by scr*wing around in college, here comes judgement day.

Radio 24

I'm appearing today at 3pm live on Radio 24. I will be speaking on youth unemployment.

It's a relatively new radio station that has become my firm favourite. Unlike other stations, which seem to take in juveniles as DJs, Radio 24 runs commentaries and news only. At night, it broadcasts BBC World News, which although very propaganda-ish, has got some excellent guests and anchors. For businesspeople and others who appreciate facts and info, the station is god-sent. In Malaysia, tune-in at 93.9FM, elsewhere go online for live broadcast.

Haven't had a chance to hear the other station - BFM, which I understand is all-business, all-day. Should be great too.