Category: Malaysia


Recent developments in financial markets made me remember a post I wrote over a year ago while studying in Malaysia at Sunway College. I never finished the post but was fascinated by this issue after first learning about it in China then discovering that Malaysia had been through the same thing.

With the US Federal Reserve now stepping in to take on non performing loans of the industry, I thought it was a good time to post this. Perhaps the US should be talking to China and Malaysia for some tips on what to do with all this bad debt!

Originally written sometime between February and June 2007.
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Being that I am a student of economics, I thought I should write something related to economics for a change. So, today I want to write a bit about NPLs or Non-Performing Loans. There is no real theme to what I am going to write, just wanted to give people an introduction to them and highlight some cases from China and Malaysia.

Now, in a buoyant economy where confidence is high, the preponsity for banks and other lending agencies to make loans is usually greater. This means that credit is often easier and cheaper to come by. The flip side of this is that business and investment deals which may not be as viable are often lent money, which, when things go bad, is not repaid. Since banks always back their lending with security of some sort, they would usually make a claim on this. In residential scenarios, this means foreclosing on a property (see the current subprime issue in the US) and recovering the amount of the loan outstanding from the sale of the property (if property prices haven’t deflated too). In the commercial arena, this usually means taking ownership over a business or business/investment assets. These are often harder to dispose of because they can often require more ‘hands on’ management in terms of extracting some value. Needless to say, they can cause significant problems to lenders asset and cash flow position, which can compromise the entire organisation where NPLs are high.

Such is/was the case in many countries, but given my experience, we will look at China and Malaysia.

In China, with banks incurring huge amounts of NPLs due to lax lending policies./

China – Asset Management Companies (AMCs)

Malaysia – Danaharta

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Since I’ve been back in KL for over a week now, I guess it’s time to write something about my experience on Redang with the turtle conservation program. I started writing this just now and it’s become huge, I think I’ll break it up into several posts.
So, I’ll start from the beginning.

The turtle conservation program on Redang Island has it’s own private beach, Chagar Hutang…wait, too far foward… We need a geography lesson for Malaysia first. Malaysia is made up of Peninsula(West) Malaysia and East Malaysia. These are completely separated geographically. KL is located in the west of West Malaysia. My destination was Kuala Terengganu which is located on the east coast of West Malaysia, approximately 8 hours by bus away from KL. See the map below already, its great and also shows the route of the bus from KL to Kuala Terengganu (my educated guess at least);

Map

Thus, I set out on a Thursday morning to Chinatown in KL where the long distance bus station is located. I didn’t have a ticket so got there early (around 11am I think) and set about arranging a ticket. This is not so difficult at the bus station since there are roving sales people all over the place asking you where you want to go. If they work for a company selling tickets to the place you want to go, they will eagerly guide you to the promised booth. Thus, I arrived at a booth selling tickets to Kuala Terengganu(hereafter “KT”) and as lonely planet had informed me, shelled out 30 beans for a one way coach ticket leaving to KT at 10pm that night. However, they didn’t actually give me a ticket, well, it was a ticket of sorts, some scribbled notes about price, time and destination, at the time I thought it was a bit more like a ticket IOU but I thought nothing much more of it. Anyway, they told me to be back at 9pm, so, I left and set about spending 9 or so hours in Chinatown while I waited for my bus.

12:30 – 8:45 —-uneventful time. watched Pan’s Labrynth in the backpackers I stayed in when I first got to KL(great movie actually), loitered about, lost my combined flashlight/pen/laser, that’s it…oh and ate some rambutans…

8:45 arrived and it was time to head to the bus station and wait for my bus. Arriving at the booth I had patronised earlier, I presented the ‘IOU’ ticket eager to claim the official boarding pass. The service was a bit slower this time around, and only the low level spruiker type workers where nearby. They looked at the IOU and then went over to the boss who was sitting down nearby. They chatted for a bit too long which made me think there was some sort of problem. After that, the boss beckoned me over since she deemed me not important enough of a concern to interrupt her seated rest. Wanting to find out what the problem was, I went over and she said “so we’ll put you on the midnight bus ok, no tickets left for the 10pm one”. I was pretty annoyed since they had originally said the 9pm one was sold out and to get the 10pm one. Also, I had been loitering about the area for 9 hours and was thus not going to take this injustice! So, I politely but directly told them that I needed a 10pm ticket and reminded them that they had sold me one(I now found out that the IOU was like a tentative statement of agreement to trade). So, the boss said to have a seat and one of the workers went off to work something out. In the end, a 10pm ticket was found and it was all good, I don’t know what the initial problem was but I’ll definitely try to get a proper ticket when paying next time.

By this time it was about 9:30, so I sat around for a few minutes and learnt some Malay words from the people selling tickets, the only one I can remember is “gila” which means crazy/mad. So, it got to around 9:45 and I thought I should buy some snacks for the trip and then head to the terminal. I boarded the coach at about 9:55 and so was expecting it to be taking off reasonably soon. Anyway, 10pm rolled by and the bus was less than half full and no driver in sight. An African family(from Sudan I later found out) hopped on around 10:10 and with four kids were suitably snacked out. Looking at their rations compared to mine, I realised that I may have underestimated my needs for the 8 hour journey. Basically, they had twisties and as we all know twisties are great and I felt I needed some for the journey. Whatever the reason, I decided that with the bus still quite empty and with no driver to be seen, I should venture out to a nearby 7-11 to get some additional supplies. Around this time a guy hopped on to check peoples tickets, so, I thought I would have no time to go and expected to be leaving quite soon. But another 5 minutes passed and still nothing was happening, the twisties were calling and my dietary desires had to be satiated. So, I approached the ticket guy and told him I wanted to go to buy some snacks and would be 5 minutes, I asked him if this was ok and after checking his watch he said “yes, but be quick”. So (leaving my bags in the luggage hold and my initial rations on my seat) I hopped off and jogged down to the 7-11 which was within sight of the bus. I went in and efficiently paid for and purchased some Twisties (Original Cheese flavour of course), a bottle of Lipton Green Iced Tea and some Chips-Ahoy cookies. Feeling relieved with twisties and lipton green tea in hand, I exited the 7-11 and proceeded to walk on the road back towards the bus which was still visible where I had left it.

However, looking at the bus I noticed that the luggage compartment door was closed (the 7-11 was close but not exactly a stones throw away, perhaps a few hundred metres away) so I thought I should pick up the pace and that the driver was perhaps ready to roll. Although the ticket guy knew I would be back soon and I thought I should be safe, nonetheless I decided to speed things up.

Just after making this sensible decision, I saw the door on the bus close and without delay observed motion of either the earth or the bus wheels rotating (it turned out to be both). At this point, I may have muttered a profanity and proceeded to run up the middle of the road waiving – snacks in hand – at the bus, which had luckily set off in the direction I was returning from. Since Malaysian public transport doesn’t usually bother with the formal rigidity of designated stops, my desperate motioning of the driver were enough to cause him to slow down and let me (re)board in the middle of a three lane road.

The seriousness of the trouble that I would have experienced had I missed my bus, and thus said goodbye to all my things, did not really hit me. I have a strange naivity when travelling and nothing that bad has really happened to me so far. I think it has something to do with submitting to “The Way”, I recommend you try it. Anyway, I was more struck by the comic nature of the entire event and was relieved to be Twisties in hand on my way to KT.

You can see in the picture below my elation at having caught my bus with adequate rations in hand! Yay, peace! or V for victory in Asia.
Me on the bus (small)

Ok that will do for now, Pt.2 should cover a little bit about the trip on the bus (nothing interesting really) and then some things about KT I guess.

Under the rader, down by the sea

On a beach with sea turtles, is where i’ll be.

That’s right, I’m heading to Redang island (Pulau Redang) on the east coast of western Malaysia tomorrow and will be returning on the 28th or 29th.  I don’t have tickets there or back yet, but only have to be there by saturday morning so will surely find a way there.  My options are bus or train (and perhaps plane on the way back) as I would like to see some of the country side and have a sense of the distance travelled.

Anyway, just to let everyone know.  For those of you who don’t know, i’m going there for a turtle conservation program.

“But what about school?” you say…  Well I say, what about the turtles, what about the turtles!  Seriously though, I have made sure it won’t be a problem and it’s an opportunity I wasn’t going to miss, should be great!

Turtle Power

EDIT: Date change.  I am now going from the 21st till 28th of April.  I was going to be the only one for the week I selected which I didn’t consider would be much fun.
I’m coming little buddies!
Recieved confirmation today that I am going to be taking part in the SEATRU Turtle Volunteer Programme between the 7th and 14th of April. It’s a conservation programme run through Universiti Malaysia Terengganu which involves a week spent at a secluded beach on Palau Redang getting up close and personal with sea turtles and the tropical life, sort of like this:

Face2Face

Well, that is what I had imagined, however, after they confirmed my spot — see it for yourself under the dates mentioned — I thought I should look into how it all works, and here are some key points I would like to point out, quoting from the website…

  • “You have to remember that you are not on holiday in a tropical beach paradise”
  • Living conditions are very basic…”
  • Needless to say, there are no beds”
  • The bathroom is secured by canvass sheeting”
  • There is no electricity and we do not operate generators”

Actually, I just realised looking at this list that apart from the last point, it won’t be much different to my current place. Aside from that, I’m actually not at all worried and expected — and am looking forward to — these types of conditions, but I really did only see all this for the first time after getting confirmation and thought it was kinda funny.
Sarcasm and attempted humour aside, if it is run well and we actually do what the 7 day intinerary details, it should be a fantastic and very unique experience. Here are some pics of the beach where the conservation programme operated — off limits to tourists I should add.

Chagar Hutang Beach Air

Chagar Hutang Beach 1

So actually, as far as I’m concerned, that is my definition of a holiday on a tropical beach paradise! Beats lazing about on pool-side recliner watching people lay about sipping pina-coladas and discussing their tan-lines. The soft white sand of the beach will be my recliner, a soft young turtling my pillow – joke! – and a fresh coconut my pina-colada. Should be great!

24 Jam!

My favourite word in Malayu: “Jam”.  It means hour and works so well for convenience stores such as 7-Eleven…”24 Jam”!  I laugh everytime I see it, it’s so full of energy and enthusiasm. I will take a photo sometime…

Malaysian Update (Terrace House)

It’s time for another post and although most people probably know alot of this, I will put it down here, for the record.

Firstly I have found a place here finally (it was alot harder than I expected). Basically most of the cheap accommodation here is for shared rooms, in shared apartments. So you can end up living with up to 7 people, with each room having locks and a large communal type kitchen and living room. I wasn’t so keen on paying over $200AUD per month to share a room with someone in barrack like conditions so I held out in hope of finding something better (and cheaper). I should mention that the places are quite nice – not as good as in China however – but they just have no feeling or character. Anyway, after looking at several places I found a terrace house in a small neighbourhood of three streets about 5 minutes walk from the campus. It works out to be about $90 per month (RM250) including bills which is ridiculously cheap, plus it’s close, I have my own bathroom, and I’m living with Malaysian Chinese so I speak Mandarin with them. woot! Some fotos:

From Sunway Room

While some people may not like the Chinese style toilet or the lack of hot water, these things don’t really bother me. Especially not having hot water which I didn’t use when I was in the hostel anyway because it is so hot and humid.

Oh, well, yes, there was the rat issue (we had two extra housemates in a pair of rats) but they were evicted, I might write something later about it it’s pretty funny actually.  But they are gone now – I hope -  and I am somewhat settled in here, lacking perhaps only space to place books/notes etc..  The floor is enough for now until I can think of something better.

Ok so that’s about it for the house,  at RM200 + RM50approx for bills each month, it must be one of the very cheapest in this area, but it suits me, it’s close and I’m living with and amongst locals which I always prefer.  Having said all this, I’m not sure how many other foreign students would be willing to live here, especially the ones that go to Sunway. Actually that reminds me, I remember mentioning to my classmate here that I would like to live in “one of those places” pointing at the terrace house neighbourhood which I now live in.  So, it is actually everything I could have hoped for, well, apart from the rats.

Sunway Megacorp

The Mega Conglomerate lives on in Malaysia. As you might know, my University here is called Sunway University College. The Sunway part of this comes from the company, Sunway Group. The area where the University is located is also called Bandar Sunway. This area has housing galore, hotels, a hospital, an ancient egyptian themed shopping centre complete with Sphynx and Pyramid (the inside having an ice-skating rink, cinema and bowling alley amongst other things). To top it all off, there is also an amusement park out the back (or more accurately in the middle).

From Sunway

Cost comparison

Thought I would keep some sort of list of price level differences between Malaysia(KL) and China(Beijing).

– Hmm, how to do this without tables, curse you tableless design… –

Food

Overall, China is cheaper for foods ranging from cheap, everyday street style baozi, through to western restaurants.  The cheapest I’ve found street food here is maybe 3RM($1.11AUD) for plain Nasi Goreng, in China, a steamer of dumplings was Y3($0.50AUD).  Oh, and Korean is like 3 times as expensive here which sucks, Bibimbap costs about $7 here, was only $2.80 in Beijing.  But, overall there is alot more choice here, so it compensates in some way.

Transport

Beijing easily wins here as far as busses are concerned, with one-way bus trips coming as low as $0.035AUD (student price, regular $0.067AUD), KL a Bus ride will set you back anywhere from $0.30-$1.00AUD. Trains are hard to compare but roughly the same, costing $0.50AUD in Beijing in a hop-on-hop-off system which is different to KL’s stop based system, to go maybe 5 stops will set you back about $0.60AUD.

As for taxies, I would say they are about the same, perhaps KL comes in a little cheaper, meter starts at $1.60 in Beijing, $0.75in KL.  However, a cavaet is involved with KL, it’s only cheaper if you can get them to use the meter, which they rarely do.  So far, every Indian driver who’s cab I have taken (well, planned to take) refuses to use the meter, at which point I hop out.  The only times I’ve used meters is with Malay drivers, who have all started the meter as soon as I finished saying the destination.  So, I tend to look out for the Malay drivers now, they have given me a good impression so far.  Oh, and to give an example of how much you could get ripped off, a cab driver told me it would be RM25 to go to my destination, I didn’t bargain which you should do so i’m sure it would get lower, but I couldn’t be bothered.  Afterwards, using the meter it cost RM5.5.

Actually KL could learn alot from Beijing in regards to Taxis.  In Beijing, every cab driver has their identification with name/photo on the dashboard. Beneath this they have the company they work for, and the number for the complaints line.  If drivers attempt to cheat you in Beijing , you just pretend (or actually do) write down their number, or begin dialing the telephone number.  They almost always come around and work things out amicably. ;)
Accommodation

Housing in Beijing is actually very expensive, more expensive than KL, well, for basic type stuff that I want, like any modern city, you can pay wat you want… ahh, this is taking too long, finish it another day…

Other

I’m here now…

Tada! While you were sleeping, I caught a flight from Beijing to KL, Malaysia and will now be studying here this coming semester. First some pics for proof…mwhahah.
Petronas

There they are /\ the Petronas towers. Gotta say that they are amazing in real life, I came out of the subway (not knowing exactly where I should go after that), looked up, and up and up, and there they were, very cool.

first sight

This was the first glimse of the city (and towers) coming in from the airport on the KLExpress train.

Roti Chanai

Roti Chanai!? Then surely this is malaysia..:P and finally…

Me+petronas

Hello!

Well, I will write some more later, for now I just wanted to surprise some people who didn’t know I was coming here. I had a very last minute change of plans and decided to come here for simple reasons which I will expound on later. For now, well, yeh, enjoy the pics and I should upload some more to my proper photo thingo soon.

Later.

T.

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