Chapter 2. Balance is for the meek
from Azizi Ali's latest book "mXe! five keys to become an Extreme Millionaire"
Balance.
Now that's a word that everyone would nod their heads to.
Everyone--rich, poor, young, old, black, brown, white, tall, short and
all around the world--would agree that balance is a magical word.
"We must strive for balance," shouts the politician. "Man must have
balance in his life," echoes the religious leaders. "We must all lead
a balanced life," come yet another agreement from the health gurus.
"Balance is the key to life," write authors from different shores.
In other words, we must all eat moderately, dress moderately, work
moderately, party moderately, sleep moderately, exercise moderately
and in short, live moderately. To which I will say, "What a load of
crap!"
Folks, nobody ever achieved anything significant in this world by
being moderate. Anyone who has rocked the world did so by doing
something to an extreme. Tiger Woods became the youngest number one
golfer in the world at the age of twenty one. But he did not start
playing golf at twenty; he's been playing golf since he was three
years old. That's not moderate, that's extreme. Genghis Khan did not
conquer half the world by being moderate; he slaughtered all who got
in his way. So did Alexander the Great. (Alexander was not called
Great by being moderate.) These people did things to an extreme,
that's why they're the stuff legends are made of. The Prophet Muhammad
was not balanced; he was extreme in his view of a single God when
everyone else was praying to idols. Jesus was not balanced; he was
extreme in his view of forgiveness even when the Roman soldiers were
putting him on the cross. (I will give more example of extremists in
this book as we go along.)
In other words, balance is for the average folks. Balance is for the
meek. If you want to have an average job, average house, average life
and be a part of the background, then do everything moderately. A
little bit of this and a little bit of that. Blend in with the balanced crowd,
don't stick out your neck and never, ever be different from the rest.
I assure you that you will be balanced. And average.
But if you want to be a winner (in anything), folks, you have to be an
extremist. If you want to achieve something significant in your life,
you have to be an extremist. To truly live life, you cannot be balanced,
you have to do things to an extreme degree. To be a world champion
in any sport or anything, you have to practice extremely. And to build
serious wealth, you have to go all the way. You cannot do things half-
heartedly, half measure or half way. You have to pull out all the stops
and go all the way.
A short look at history
For a long time, like most people, I too assumed that everything had
been the same since time immemorial. Sure, there were inventions and
technological advances but people had thought pretty much the same
thoughts as their forefathers. Boy, was I wrong!
The more I studied history, the more I learnt that man has changed
significantly from his forefathers. And not only in the physical sense
but more importantly, in his thinking.
Today, the idea of improving oneself is but a given. You are expected
to do all you can to improve your station in life. But would you be
surprised if I told you that this is a new idea?
For thousands of years, mankind had been doing things for the
community. You work hard yes, not to move ahead, but to maintain your
place in life and therefore society. If your grandfather was a farmer,
you and your children will spend your lives down at the farms. If they
were ironmongers instead, that's what you and your children will be
doing. This is how it was to the ancient Greeks, Romans, Arabs,
Egyptians, and even to the majority of Eastern civilizations. So the
concept of "bettering yourself" or "getting ahead" was as alien as,
well, an alien from a different planet. Folks would stare at you in
disbelief if you ever raised such radical thoughts.
While running a business was as old as mankind, to do so for profit,
gain and self advancement was a sure way of getting yourself branded
as a disciple of the Devil. You'd be kicked out of the community in a
hurry. Banking, charging interest and lending money were pretty much
X-rated activities and people only did them behind shadowy curtains.
Even in the Middle Ages, the Church taught that no self respecting
Christians ought to be merchants because merchants were a blight to
society.
Only in the late 1700s, views began to change. This was kick started
by the publication of The Wealth of Nations by the Scottish
economist Adam Smith in 1776. (If the year sounds familiar, it is the
year when America gained independence from the British.) The world
opened up for businesses, markets cropped up and trade between nations
was brisk. Merchants started to make real money while bankers came out
of the closet to lend us money and charge us interest.
Today, the world revolves around money. Banking is a world wide
phenomenon and bankers are esteemed members of society. Few would
start a business without having profit as the driving motive. In fact,
extremely successful businessmen are treated like celebrities, rock
stars and world leaders. Just look at Bill Gates. He is treated like a
world leader everywhere he goes. Even Presidents and Prime Ministers
want to meet him! All the guy does is sell software (by the
gazillions)!
Box - Banking
The model for the first bank and saving institution was developed by
Reverend Henry Duncan when he established the Parish Bank Friendly
Society of Ruthwell in Scotland in 1810.
Though men had been saving and investing their money throughout the
centuries, it had always been done for the community. The banking
operation was based on the principle of charity; to help out a
neighbour in distress or for the benefit of the community as a whole.
However, Dr. Duncan's bank was different. It was the first bank to
provide the means for an individual to save money for his own benefit.
Dr. Duncan wanted to encourage self-reliance, independence, individual
pride and also dignity. And his bank provided the means for an
individual to do exactly that--save money for one's own future.
So as you can imagine, the idea of saving money for one's own future
and gain was something totally radical. The thought back then was the
collapse of society if everybody was allowed to make personal gains.
The infamous question of "what would happen if everyone did the same
thing?" must have been raised over and over again.
As it turned out, it was precisely because everyone did the same
thing--worked hard for personal gain--that the world exploded as it
did in the early 1800s.
Bankers have certainly come very far in such a short time. Today, they
rule the world.
But some things remain the same. Like a hard habit to break, the big
no-no word today is "extreme". Despite the glaring signs and clues
that prove otherwise (like the ones mentioned earlier), a lot of
people are still touting the benefits of being balanced. Despite the
thousands of people rocking the world by being extreme, a lot of
people are sticking with balance. So much so that if you mention that
you are an extremist, most people would stare at you with their mouths
wide open. A few would think that you have gone off your rockers while
some others would have been long gone, bolting through the door as
soon as you mention the dreaded E word. You'd be branded a lunatic or
something even worse.
The definition problem
The problem with the word "extreme" is that it is being defined and
used mostly in the negative sense. An extremist is someone who is off
the wall, not all there, dangerous and yes, someone who is to be
feared. The current obvious poster (and fall) guy is a Muslim
extremist. If there is one thing that strikes fear into western
hearts, it is a Muslim extremist, who is pictured as a guy who would
think nothing of blowing himself up.
The reality is that the guys who are blowing themselves up are doing
it for revenge, for hatred, for anger and for a thousand other
reasons, but certainly not for Islam. Islam doesn't dictate true
believers to blow themselves and others up.
But of course, it is a convenient attack. It is so much easier to
blame everything on extremists. Instead of trying to find the reasons
why young men are blowing themselves up, they push it all aside with
one word--extremist. Clean, easy and convenient.
Which is a tragedy in more ways than one.
SIDEBAR
"Don't wish it were easier, wish you were better. Don't wish for
fewer problems, wish for more skills. Don't wish for less of a
challenge, wish for more wisdom."
Jim Rohn
A short history of flying
In the early days of flight, the authorities discovered that many of
the air crashes were due to design or mechanical faults. This was not
surprising considering the industry was in the beginning stages.
However, all these were quickly addressed and rectified. Now while the
number of crashes dropped, it did not go down as many as expected. The
investigators soon found another major reason for the crashes--the
pilots themselves. A crash that was attributed to a mistake by the
pilot was termed as "pilot error" and the case was closed. Perhaps the
thinking back then was, "pilot error" was human error and was
therefore unavoidable. So the moment the words "pilot error" came up,
the case would be closed.
Easy work for the authorities, investigators, airlines, management,
air traffic control and the flight crew themselves. Label it "pilot
error", case closed and we can all go back to our daily existence.
While it did make things easy, it did not solve the problem.
It took some years before someone realised that hey, maybe we should
look more into "pilot error". For the first time, questions were being
asked: what led to the pilot making the error? Was he having personal
problems? Was he tired? Or was he having financial problems? And most
important of all, what can we do to reduce and eliminate pilot errors?
From then onwards, the whole concept changed.
And the moment the aviation industry began to address this, the number
of crashes, near crashes and incidents dropped again. As a result,
today, flying is one of the safest, if not the safest, mode of
transportation in the world.
Likewise, a similar result would arise if we start to use the word
extreme for what it really is instead of lumping it with all the
negative things on this planet. Instead of thinking it as something
bad, evil and negative, we could re-brand it as something positive,
which it is. We could use it to spur us to greater heights and lead
extraordinary lives.
When extreme is the only solution
As mentioned in the beginning of this book, the definition of extreme
is "far from what is usual or conventional" or "an excessive degree;
immoderate". This means that extreme does not have to be negative. In
fact, as you can see, there is no negative connotation in the
definition at all.
In other words, extreme can be, well, extremely positive!
Now some of you may be surprised but despite the unanimous echo the
world over for moderation, there are areas where you want it to
be taken to the extreme.
"What do you mean, Azizi?"
Well, would you want your kids to be truthful only moderately? Would
you want to have anything to do with folks who are moderately honest?
Would you do business with people who are moderately fair? Would you
want to be on the operating table of a surgeon who is moderately
successful? Would you want the air traffic controllers to be only
moderate in doing their job?
In the last question alone, a 99.9% success rate would still mean an
air crash with catastrophic loss of lives every day. For example,
O'Hare International Airport in Chicago, which is one the busiest
airports in the world, handled over 920,000 aircraft movements in 2002
alone. A 0.1% failure rate will still see 920 crashes per year or 2.5
crashes a day! Would you be happy with that? Remember that is a 0.1%
failure rate, which is well above what most people would term as
moderation. The obvious answer is no. You want everyone in the
aviation industry--air traffic controllers, pilots, engineers,
everyone--to maintain a 100% success rate. All the time.
So the answer to all of the above questions is "no". You do not want
moderation in any of the above situation. You want them to be extreme.
You want your children to tell the truth all the time, not some of the
time and not in moderation. You want to do business with people who
are fair and honest all the time, not some of the time. You want
surgeons who are successful in all their operations and you certainly
want a hundred percent success rate in air traffic control. Only
extreme counts and there is no other acceptable answer.
So while moderation is a fine way to live life, don't take moderation
to an extreme! In other words, you have to be an extremist in some
areas, preferable the ones that make a major difference in your
life--happiness, health, wealth and family being just four of them.
The good news is that if you are still reading these pages, then you
are halfway through to become an extremist yourself!
Edited for clarity by Azlan Adnan.
Sunday, December 12, 2004
Gunung Datok Rembau
You're invited to join the d'Peak Toastmasters Club members in climbing Gunung Datok Rembau.
d'Peak Toastmasters Club meeting on the d'Peak of Gunung Datok Rembau, Negri Sembilan.
Day Trip on Sunday, 12th Dec 2004. Easy Climb.
Itinerary
6.30 am: Breakfast while waiting, at our "usual" collection station at de Mamak Shop below Maluri LRT bridge on the same side of Jaya Jusco Taman Maluri, Jalan Cheras.Here you can also pack your Lunch for the climb. Free car parking point for Car pooling. Members can also come by LRT.
7.00 am: Leave for Rembau via Seremban Highway to Pedas/Rembau.
8.30 am: Easy climb from Waterfall Base up to peak 884 metres.
11.00 to 11.30 am: Lunch Break at the Peak
11.30 to 12.30 pm: TM Meeting at two man-made Platforms in a cool environment!
2.30 pm: Back to base to wash up at Waterfall.
3.30 pm: journey back to KL
4.30 pm plus: Back at Maluri Station for Tea.
Bring along Back Pack to carry Water, Food. A good pair of Trekking shoes, Trekking wear, Rain wear, spare clothing/slippers for change. Swimming wear to bathe at Waterfall.
The club was formed to have the pleasure and leisure of Public Speaking via it's proven program, now up on peaks of mountains, waterfalls using Wheel Drive vehicles, inside caves and other summits both indoor and outdoor!
Ultimate ain is to train, and train with the goal of conducting a Toastmaster Meeting up Gunung Kinabalu and Mount Kilimanjaro, Tanzania, the tallest Peak in the continent of Africa!
"A journey of a thousand miles starts with the first step."
~ Confucius
So the ultimate climb will be achieved by training on easier peaks! Meetings are conducted twice monthly on gradually higher and higher summits.
Dare to take up the challenge?
All of you are invited as guests! If you are up to the task, join us!
Tell email your friends about this project.
Interested? Suggestions? Comments? Questions?
Contact:
Kaynis Chong
kaynis@gmail.com
Mobile 019-329 0288
Copyright 2003-2004 Azlan Adnan Legal Notice
Saturday, December 11, 2004
African Scam ~ Arwork Mokar
BEWARE OF THIS SCAM
---------- Forwarded message ----------
From: arworkmokar@excite.co.uk, arworkmokar@fsmail.net
Date: Fri, 10 Dec 2004 01:15:47 +0100
Subject: BUSINESS OPPORTUNITY
To: basheer@malaysianyellowpages.net
MR ARWORK MOKAR
NNPC TOWERS
DELTA STATE
Hello, Good day,
I am the Chairman of the Contract Award Committee, Federal Ministry
of Petroleum Resources, Nigeria I am in search of an agent to assist
us in the transfer of (US$50,4M) FIFTY MILLION, FOUR HUNDRED THOUSAND
UNITED STATES DOLLARS. And subsequent investment in properties in your
country.You will be required to:
(1) Assist in the transfer of the said sum
(2) Advise on lucrative areas for investment
(3) Assist us in purchase of properties.
If you decide to render your service to us in this regard, 30% of the
total sum will be offerred to you. Pls reply to my private
email:(arworkmokar@fsmail.net)
Respectfully,
MR ARWORK MOKAR
Chairman Contract Award Committee {CCAC}
---------- Forwarded message ----------
From: arworkmokar@excite.co.uk, arworkmokar@fsmail.net
Date: Fri, 10 Dec 2004 01:15:47 +0100
Subject: BUSINESS OPPORTUNITY
To: basheer@malaysianyellowpages.net
MR ARWORK MOKAR
NNPC TOWERS
DELTA STATE
Hello, Good day,
I am the Chairman of the Contract Award Committee, Federal Ministry
of Petroleum Resources, Nigeria I am in search of an agent to assist
us in the transfer of (US$50,4M) FIFTY MILLION, FOUR HUNDRED THOUSAND
UNITED STATES DOLLARS. And subsequent investment in properties in your
country.You will be required to:
(1) Assist in the transfer of the said sum
(2) Advise on lucrative areas for investment
(3) Assist us in purchase of properties.
If you decide to render your service to us in this regard, 30% of the
total sum will be offerred to you. Pls reply to my private
email:(arworkmokar@fsmail.net)
Respectfully,
MR ARWORK MOKAR
Chairman Contract Award Committee {CCAC}
African Scam ~ Marriam Taylor
BEWARE OF THIS SCAM
---------- Forwarded message ----------
From: Marriam Taylor
Emails:
marriam_taylor@voila.fr
marriam_taylor0003@yahoo.ca
Date: Thu, 9 Dec 2004 19:04:32 +0100
Subject: Waiting to hear from you
From Mrs. Marriam Taylor.
Rue 982 Sea Avenue opposite old Navy Camp
B/P 9618 Dakar Senegal
West Africa.
Hello Sir,
I would like to apply through this medium for your co-operation and to
secure an opportunity to invest and do joint business with you in your
country.
I have a substantial capital i honorably intend to invest in your
country into a very lucrative business venture of which you are to
advise and execute the said venture over there for the mutual benefits
of both of us.
Your able co-operation is to become my business partner in your
country and create ideas on how money will be invested,properly
managed and the type of investment after the money is transferred to
your custody with your assistance.
Meanwhile, on indication of your willingness to handle this
transaction sincerely by protecting our interests and upon your
acceptance of this proposal, I would furnish you with the full
detailed information, procedure,amount involve and mutually agree on
your percentage interest or share holding for helping me to secure the
release of the deposit and investing the money.
I shall be glad to reserve this respect and opportunity for you, if
you so desire, but do urgent you to give the matter your immediate
attention it deserves. Looking forward to your earliest reply true my
private Email: marriam_taylor@voila.fr
Your's Truly,
Mrs. Marriam Taylor.
---------- Forwarded message ----------
From: Marriam Taylor
Emails:
marriam_taylor@voila.fr
marriam_taylor0003@yahoo.ca
Date: Thu, 9 Dec 2004 19:04:32 +0100
Subject: Waiting to hear from you
From Mrs. Marriam Taylor.
Rue 982 Sea Avenue opposite old Navy Camp
B/P 9618 Dakar Senegal
West Africa.
Hello Sir,
I would like to apply through this medium for your co-operation and to
secure an opportunity to invest and do joint business with you in your
country.
I have a substantial capital i honorably intend to invest in your
country into a very lucrative business venture of which you are to
advise and execute the said venture over there for the mutual benefits
of both of us.
Your able co-operation is to become my business partner in your
country and create ideas on how money will be invested,properly
managed and the type of investment after the money is transferred to
your custody with your assistance.
Meanwhile, on indication of your willingness to handle this
transaction sincerely by protecting our interests and upon your
acceptance of this proposal, I would furnish you with the full
detailed information, procedure,amount involve and mutually agree on
your percentage interest or share holding for helping me to secure the
release of the deposit and investing the money.
I shall be glad to reserve this respect and opportunity for you, if
you so desire, but do urgent you to give the matter your immediate
attention it deserves. Looking forward to your earliest reply true my
private Email: marriam_taylor@voila.fr
Your's Truly,
Mrs. Marriam Taylor.
Wednesday, December 08, 2004
Azizi Ali's Property Newsletter
------------------------------------------------------------
MILLIONAIRESPLANET EZINE
money . success . freedom
Dec 2004 Issue #28
------------------------------------------------------------
Welcome to the latest issue of
"MILLIONAIRESPLANET EZINE"
------------------------------------------------------------
IN THIS ISSUE
------------------------------------------------------------
1. Feature Article
2. Quote of the Month
3. Your Question Answered
4. Special Offers
5. New Books by Azizi Ali
6. Disclaimers
------------------------------------------------------------
1. FEATURE ARTICLE: Property Jumbo Answer (Session 2)
------------------------------------------------------------
Since it proved to be a hot thing, I'm answering more
property investment related questions this month.
As usual, the questions are presented the way they came in
- broken English, wrong grammar and all.
Q1: I bought your book "How to Become a Property
Millionaire". It's a fantastic book and I want to put to
good use my knowledge gained from your book. However, I
would really appreciate if you can enlighten me as how to
discern the market price of an auctioned property as
against the reserve price stated in the proclamation of sale.
Thanks.
A1: A good rough guide is the selling price of similar
houses in the same area. For example, if a neighboring
house sold for RM200k last month, the price of the auctioned
property should not be more than that. Of course, if you
want a more exact figure, hire a valuer.
Q2: 1. Is it true that I will be charged RGPT, i.e. 30%
from profit? I heard that for selling a 1st house, owner
will be exempted on this RGPT.
2. Are there any tax that I have to pay, i.e. sales
tax, government tax, etc.?
3. For the past 3 years, I fell in love with
properties. Any advice?
A2: 1. The RGPT is calculated on a sliding scale,
depending on the time period you owned it. The scale starts
from 30% for the first 2 years and drops to 0% after 5 years.
(Please refer to pg 168 of my latest bestseller "How to
Become a Property Millionaire" for the full scale).
You can get the exemption from RGPT for the first
house that you declared, which is not necessarily the first
house you actually sold. For example, it may be the third
house that you sold as you paid RPGT for the first 2 houses
that you sold. A good strategy is to get the RGPT exemption
for the property with the largest profit. This is because
we are given only one exemption a lifetime. Once taken,
it is gone forever.
2. Yes, you have to pay stamp duty on the sale.
This will be done by the lawyer handling the S & P agreement.
3. Read (and reread) my twin books on property
investment - "How to Become a Property Millionaire" and
"How to Become a Millionaire Landlord". Of course, you can
attend my property seminar as well. The next one is on
Saturday 11th December 20004. (Full details are on the
website.)
Q3: At the risk of being out-bid at an auction, I will
not only lose out on the property, but will there be any
fees incurred? Will I lose my 10% deposit?
A3: You will get back your 10% deposit should you not
win the auction. The only charge incurred is the fee you
paid to the bank for preparing the bank draft.
Q4: Great book! You're on the way (if not already) to
be the next Rich Dad of Malaysia.
One question, just an idea I have. Is it
worthwhile/legal for me to start a company and use this
company to purchase properties and collect rent before I
even own 4 residential properties? I figure this way I
could deduct a lot of the expenses like renovations as
necessities of the business and get better tax breaks.
Are there other ways other than owning 4
residential properties to consider the rent as business
income?
A4: Thank you for your kind words and support.
1. Of course you can have a company for your
property investment. You can do this anytime, even
before buying a single property. However, you will incur
added costs such as incorporation and secretarial expenses
by doing so. Therefore, make sure you are serious about
becoming a property investor first before doing this.
2. You don't need to have 4 residential properties
to be able to treat the rent as a biz income. As explained
in "How to Become a Property Millionaire" (pg 165), if you
have 2 or more shop houses, that will qualify as well.
Q5: You mentioned that banks only allow loans up to 1/3
of an individual's monthly pay for property (real estate)
loans.
Say I earn RM3000 per month. This would mean that
banks will only give a loan for a property which has a
monthly mortgage of not more than RM1000. Is it correct?
Suppose the above is correct. Now, let's say that
it will take me 20 years to service the property loan
and that my pay stays fixed at RM3000 per month for the
next 20 years. At this rate, does this mean that I cannot
buy any more property at least for the next 20 years
because my monthly pay of RM3000 is not enough for me to
take another loan from the bank (unless my pay goes up to
RM6000 – then I can take another similar loan). If this is
the case, then how can I achieve to own 5 properties in 10
years? Please help as I want to buy my first property soon.
A5: 1. Yes, banks normally allow loans up to 1/3 of
your salary. However, they will consider other consistent
source of income as well. For example, rent collected or
commission from sales or royalty from writing books.
2. If you do not have other source of income and
if your salary remained at RM3000 for the next 20 years,
your maximum loans will remain at RM1000. And you deserve
it! Even an average person's salary will increase in 20
years, what more an above average you?
Q6: I noticed that you do not recommend service
apartment as an investment. Why can't you make money from
service apartment? Please elaborate.
A6: I do not recommend service apartment because I have
never met, known or heard any individual making money
from them (developers aside)! Isn't that a good enough
reason to stay away?
Q7: I would like to congratulate you for writing
fantastic books. I first read about property investment
by Robert K. 2 years ago but wishing that a Malaysian would
write books like this. I guess my wish came true….2 months
ago I just purchase my first property in Miri, Sarawak
with an extremely very low price. I'm very excited about
getting another property but I have a few questions
that I would like to ask you, since I'm very new in this.
I'm thinking of getting into property investment as
a full time, the problem is I'm working with family so I
have no income tax.
What do I need to do? My only problem at this moment
is more to income tax, can you please advice me on this
matter?
A7: I'm not exactly certain what is it that you want
to know but here goes. You only pay income tax when
you make money. If you don't make money, or not make enough
money, or lose money, you don't pay tax.
By the way, it's only money that is the criteria
here. Whether you do it full time or part-time is immaterial.
In other words, you can remain a full time housewife,
invest in properties in your free time, and make money and
pay a little bit of tax. Life is a bed of roses!
Q8: I have obtained a loan for a property recently
bought. This said property has been rented out and
provides me an income of RM1000 per month. My loan
installment is RM950. Would like to find out:
1. Can bank mortgage interest be deducted in my
personal income tax?
2. What is the maximum amount (as in RM) that is
allowed for deduction? What are the criteria required for
a full amount of deduction?
A8: Yes, you can deduct the interest portion of the
mortgage from your income tax – all of it. For example,
if the interest portion is RM900, than you can deduct all
that. There is no other criteria except for the property
must not be the one that you are staying in.
Q9: Would like to have your advice for the followings:
1. Potential tenants
If we as a landlord have collected a down payment
from potential tenant and had agreed verbally to rent the
property out to them. However, at a later stage we realize
that they are not suitable after viewing their application
form. What can we do? Can we just refund them the down
payment without any compensation?
2. Existing tenants
If tenants continue to extend another year contract
after completing two year tenancy now has requested the
landlord to repaint the property. Are we obliged to do so?
Can we charge them the cost for the painting?
A9: 1. It depends on the agreement. Normally we would
refund their deposit and move on. If they not happy
about it, they may decide to take legal action against
you, but it takes too long, too expensive and too much
trouble. Weigh the risks and decide intelligently.
2. No, you are obliged to repaint the property
(especially if it is not in the tenancy agreement).
However, you may want to do so to maintain the appearance
(and value) of your property. Perhaps both of you (landlord
and tenant) can share the cost?
Q10: I have attended your property investment course in
Holiday Villa last year. Herewith I want to share some of
my properties investment portfolio with you.
1. I have two rental apartments in Melaka, one I
rent out to KYM (Kolej Yayasan Melaka) and the other one
to MMU (Multimedia University). Both comes with rental
agreement and managed by rental management companies.
Both are giving me a positive cash flow.
2. I also have bought one condominium in Ulu Langat
with 25 years rental contract. The contract has been legally
stamp. What should I do to ensure that the developer
fulfill their obligation to pay the rental to me for the
next 25 years? Can any legal action been taken if they do
not fulfill any of the terms in the agreement?
A10: 1. Good for you. Way to go!
2. There is nothing you can do except for taking
legal action should the other party fail to fulfill their
side of the bargain.
Oh wait, yes! There is one alternative - sell the darn property!
PS: More readers have written in to inquire about Capital
Allowance (mentioned in "How to Become a Property
Millionaire"). Since it is such a hot topic, I have
prepared a brief explanation on it, which is now on my
website. This ought to satisfy curious souls out there.
Please click on
http://www.millionairesplanet.com/art045.html
------------------------------------------------------------
2. QUOTE OF THE MONTH
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"The only thing that stands between a man and what
he wants from life is often merely the will to try
it and the faith to believe that it is possible."
* Richard M. DeVos *
------------------------------------------------------------
3. YOUR QUESTION ANSWERED
------------------------------------------------------------
Q: Not too long ago, I came across your book entitled "How
to become a Millionaire Landlord". After reading it, a spark
lit the fire to my quest for knowledge about the world
finance and earning money. I soon grabbed hold of another
book of yours, "Millionaires are From a Different Planet".
This book has educated me on personal finance.
After reading your profile, I was very much encouraged, not
just by your success in personal finances, but that you are
a pilot. You have become my role model. What I understand
from your profile is that you are a pilot, already have an
MBA from University of Bath, and most of all, and are in
control of your finance.
What I am particularly interested in is how you did all that?
A: Whatever you really, really, really, really, really wants
in life… you will do whatever it takes to get it. That's
how I always get what I want in my life. That's how anybody
who's anybody ever got anything in their lives.
Now what is it hat you really (10x) want in your life?
* HOT TIP *
Read "Die Broke"
by Stephen Pollan and Mark Levine
------------------------------------------------------------
4. SPECIAL OFFERS: Property Seminar
------------------------------------------------------------
Last call for the *number 1* property seminar in Malaysia.
Title: How to MAKE A MILLION from property investment
Date: Sat 11th Dec 2004
Time: 9 am - 6 pm
Venue: Holiday Villa, Subang Jaya
Click here to find out how you can benefit from the real
estate revolution.
http://www.millionairesplanet.com/events.html
PS: Each pax will receive a complimentary copy of Azizi's
latest best seller "How to Become a Property Millionaire".
------------------------------------------------------------
5. NEW BOOKS FROM AZIZI ALI
------------------------------------------------------------
Azizi's latest book "mXe! five keys to become an Extreme
Millionaire" will be out soon. As the title suggests, this
book is about how you can get to be a millionaire as
quickly as possible while doing the things that you love.
If you have benefited from Azizi's previous books, then you
will no doubt love this latest offering. You will find gems
inside this book, which include Azizi's own secret of
success and formula of living life.
This book is due to be published in Feb 2005. However, you
can place your order now and be the first to get this storm.
For more details, please click on:
http://www.millionairesplanet.com/pro.html
------------------------------------------------------------
6. DISCLAIMERS
------------------------------------------------------------
This e-zine is for educational purposes only. The author and
publisher specifically disclaim any responsibility for any
liability, loss or risk, personal or otherwise, which is
incurred as a consequence, directly or indirectly, of the
use and application of any of the contents of this e-zine.
------------------------------------------------------------
Copyright 2004 Azizi Ali
All rights reserved
------------------------------------------------------------
Azizi Ali
True Wealth Sdn Bhd
email: info@millionairesplanet.com
website: www.millionairesplanet.com
tel: 03-7880 1051
fax: 03-7880 8051
MILLIONAIRESPLANET EZINE
money . success . freedom
Dec 2004 Issue #28
------------------------------------------------------------
Welcome to the latest issue of
"MILLIONAIRESPLANET EZINE"
------------------------------------------------------------
IN THIS ISSUE
------------------------------------------------------------
1. Feature Article
2. Quote of the Month
3. Your Question Answered
4. Special Offers
5. New Books by Azizi Ali
6. Disclaimers
------------------------------------------------------------
1. FEATURE ARTICLE: Property Jumbo Answer (Session 2)
------------------------------------------------------------
Since it proved to be a hot thing, I'm answering more
property investment related questions this month.
As usual, the questions are presented the way they came in
- broken English, wrong grammar and all.
Q1: I bought your book "How to Become a Property
Millionaire". It's a fantastic book and I want to put to
good use my knowledge gained from your book. However, I
would really appreciate if you can enlighten me as how to
discern the market price of an auctioned property as
against the reserve price stated in the proclamation of sale.
Thanks.
A1: A good rough guide is the selling price of similar
houses in the same area. For example, if a neighboring
house sold for RM200k last month, the price of the auctioned
property should not be more than that. Of course, if you
want a more exact figure, hire a valuer.
Q2: 1. Is it true that I will be charged RGPT, i.e. 30%
from profit? I heard that for selling a 1st house, owner
will be exempted on this RGPT.
2. Are there any tax that I have to pay, i.e. sales
tax, government tax, etc.?
3. For the past 3 years, I fell in love with
properties. Any advice?
A2: 1. The RGPT is calculated on a sliding scale,
depending on the time period you owned it. The scale starts
from 30% for the first 2 years and drops to 0% after 5 years.
(Please refer to pg 168 of my latest bestseller "How to
Become a Property Millionaire" for the full scale).
You can get the exemption from RGPT for the first
house that you declared, which is not necessarily the first
house you actually sold. For example, it may be the third
house that you sold as you paid RPGT for the first 2 houses
that you sold. A good strategy is to get the RGPT exemption
for the property with the largest profit. This is because
we are given only one exemption a lifetime. Once taken,
it is gone forever.
2. Yes, you have to pay stamp duty on the sale.
This will be done by the lawyer handling the S & P agreement.
3. Read (and reread) my twin books on property
investment - "How to Become a Property Millionaire" and
"How to Become a Millionaire Landlord". Of course, you can
attend my property seminar as well. The next one is on
Saturday 11th December 20004. (Full details are on the
website.)
Q3: At the risk of being out-bid at an auction, I will
not only lose out on the property, but will there be any
fees incurred? Will I lose my 10% deposit?
A3: You will get back your 10% deposit should you not
win the auction. The only charge incurred is the fee you
paid to the bank for preparing the bank draft.
Q4: Great book! You're on the way (if not already) to
be the next Rich Dad of Malaysia.
One question, just an idea I have. Is it
worthwhile/legal for me to start a company and use this
company to purchase properties and collect rent before I
even own 4 residential properties? I figure this way I
could deduct a lot of the expenses like renovations as
necessities of the business and get better tax breaks.
Are there other ways other than owning 4
residential properties to consider the rent as business
income?
A4: Thank you for your kind words and support.
1. Of course you can have a company for your
property investment. You can do this anytime, even
before buying a single property. However, you will incur
added costs such as incorporation and secretarial expenses
by doing so. Therefore, make sure you are serious about
becoming a property investor first before doing this.
2. You don't need to have 4 residential properties
to be able to treat the rent as a biz income. As explained
in "How to Become a Property Millionaire" (pg 165), if you
have 2 or more shop houses, that will qualify as well.
Q5: You mentioned that banks only allow loans up to 1/3
of an individual's monthly pay for property (real estate)
loans.
Say I earn RM3000 per month. This would mean that
banks will only give a loan for a property which has a
monthly mortgage of not more than RM1000. Is it correct?
Suppose the above is correct. Now, let's say that
it will take me 20 years to service the property loan
and that my pay stays fixed at RM3000 per month for the
next 20 years. At this rate, does this mean that I cannot
buy any more property at least for the next 20 years
because my monthly pay of RM3000 is not enough for me to
take another loan from the bank (unless my pay goes up to
RM6000 – then I can take another similar loan). If this is
the case, then how can I achieve to own 5 properties in 10
years? Please help as I want to buy my first property soon.
A5: 1. Yes, banks normally allow loans up to 1/3 of
your salary. However, they will consider other consistent
source of income as well. For example, rent collected or
commission from sales or royalty from writing books.
2. If you do not have other source of income and
if your salary remained at RM3000 for the next 20 years,
your maximum loans will remain at RM1000. And you deserve
it! Even an average person's salary will increase in 20
years, what more an above average you?
Q6: I noticed that you do not recommend service
apartment as an investment. Why can't you make money from
service apartment? Please elaborate.
A6: I do not recommend service apartment because I have
never met, known or heard any individual making money
from them (developers aside)! Isn't that a good enough
reason to stay away?
Q7: I would like to congratulate you for writing
fantastic books. I first read about property investment
by Robert K. 2 years ago but wishing that a Malaysian would
write books like this. I guess my wish came true….2 months
ago I just purchase my first property in Miri, Sarawak
with an extremely very low price. I'm very excited about
getting another property but I have a few questions
that I would like to ask you, since I'm very new in this.
I'm thinking of getting into property investment as
a full time, the problem is I'm working with family so I
have no income tax.
What do I need to do? My only problem at this moment
is more to income tax, can you please advice me on this
matter?
A7: I'm not exactly certain what is it that you want
to know but here goes. You only pay income tax when
you make money. If you don't make money, or not make enough
money, or lose money, you don't pay tax.
By the way, it's only money that is the criteria
here. Whether you do it full time or part-time is immaterial.
In other words, you can remain a full time housewife,
invest in properties in your free time, and make money and
pay a little bit of tax. Life is a bed of roses!
Q8: I have obtained a loan for a property recently
bought. This said property has been rented out and
provides me an income of RM1000 per month. My loan
installment is RM950. Would like to find out:
1. Can bank mortgage interest be deducted in my
personal income tax?
2. What is the maximum amount (as in RM) that is
allowed for deduction? What are the criteria required for
a full amount of deduction?
A8: Yes, you can deduct the interest portion of the
mortgage from your income tax – all of it. For example,
if the interest portion is RM900, than you can deduct all
that. There is no other criteria except for the property
must not be the one that you are staying in.
Q9: Would like to have your advice for the followings:
1. Potential tenants
If we as a landlord have collected a down payment
from potential tenant and had agreed verbally to rent the
property out to them. However, at a later stage we realize
that they are not suitable after viewing their application
form. What can we do? Can we just refund them the down
payment without any compensation?
2. Existing tenants
If tenants continue to extend another year contract
after completing two year tenancy now has requested the
landlord to repaint the property. Are we obliged to do so?
Can we charge them the cost for the painting?
A9: 1. It depends on the agreement. Normally we would
refund their deposit and move on. If they not happy
about it, they may decide to take legal action against
you, but it takes too long, too expensive and too much
trouble. Weigh the risks and decide intelligently.
2. No, you are obliged to repaint the property
(especially if it is not in the tenancy agreement).
However, you may want to do so to maintain the appearance
(and value) of your property. Perhaps both of you (landlord
and tenant) can share the cost?
Q10: I have attended your property investment course in
Holiday Villa last year. Herewith I want to share some of
my properties investment portfolio with you.
1. I have two rental apartments in Melaka, one I
rent out to KYM (Kolej Yayasan Melaka) and the other one
to MMU (Multimedia University). Both comes with rental
agreement and managed by rental management companies.
Both are giving me a positive cash flow.
2. I also have bought one condominium in Ulu Langat
with 25 years rental contract. The contract has been legally
stamp. What should I do to ensure that the developer
fulfill their obligation to pay the rental to me for the
next 25 years? Can any legal action been taken if they do
not fulfill any of the terms in the agreement?
A10: 1. Good for you. Way to go!
2. There is nothing you can do except for taking
legal action should the other party fail to fulfill their
side of the bargain.
Oh wait, yes! There is one alternative - sell the darn property!
PS: More readers have written in to inquire about Capital
Allowance (mentioned in "How to Become a Property
Millionaire"). Since it is such a hot topic, I have
prepared a brief explanation on it, which is now on my
website. This ought to satisfy curious souls out there.
Please click on
http://www.millionairesplanet.com/art045.html
------------------------------------------------------------
2. QUOTE OF THE MONTH
------------------------------------------------------------
"The only thing that stands between a man and what
he wants from life is often merely the will to try
it and the faith to believe that it is possible."
* Richard M. DeVos *
------------------------------------------------------------
3. YOUR QUESTION ANSWERED
------------------------------------------------------------
Q: Not too long ago, I came across your book entitled "How
to become a Millionaire Landlord". After reading it, a spark
lit the fire to my quest for knowledge about the world
finance and earning money. I soon grabbed hold of another
book of yours, "Millionaires are From a Different Planet".
This book has educated me on personal finance.
After reading your profile, I was very much encouraged, not
just by your success in personal finances, but that you are
a pilot. You have become my role model. What I understand
from your profile is that you are a pilot, already have an
MBA from University of Bath, and most of all, and are in
control of your finance.
What I am particularly interested in is how you did all that?
A: Whatever you really, really, really, really, really wants
in life… you will do whatever it takes to get it. That's
how I always get what I want in my life. That's how anybody
who's anybody ever got anything in their lives.
Now what is it hat you really (10x) want in your life?
* HOT TIP *
Read "Die Broke"
by Stephen Pollan and Mark Levine
------------------------------------------------------------
4. SPECIAL OFFERS: Property Seminar
------------------------------------------------------------
Last call for the *number 1* property seminar in Malaysia.
Title: How to MAKE A MILLION from property investment
Date: Sat 11th Dec 2004
Time: 9 am - 6 pm
Venue: Holiday Villa, Subang Jaya
Click here to find out how you can benefit from the real
estate revolution.
http://www.millionairesplanet.com/events.html
PS: Each pax will receive a complimentary copy of Azizi's
latest best seller "How to Become a Property Millionaire".
------------------------------------------------------------
5. NEW BOOKS FROM AZIZI ALI
------------------------------------------------------------
Azizi's latest book "mXe! five keys to become an Extreme
Millionaire" will be out soon. As the title suggests, this
book is about how you can get to be a millionaire as
quickly as possible while doing the things that you love.
If you have benefited from Azizi's previous books, then you
will no doubt love this latest offering. You will find gems
inside this book, which include Azizi's own secret of
success and formula of living life.
This book is due to be published in Feb 2005. However, you
can place your order now and be the first to get this storm.
For more details, please click on:
http://www.millionairesplanet.com/pro.html
------------------------------------------------------------
6. DISCLAIMERS
------------------------------------------------------------
This e-zine is for educational purposes only. The author and
publisher specifically disclaim any responsibility for any
liability, loss or risk, personal or otherwise, which is
incurred as a consequence, directly or indirectly, of the
use and application of any of the contents of this e-zine.
------------------------------------------------------------
Copyright 2004 Azizi Ali
All rights reserved
------------------------------------------------------------
Azizi Ali
True Wealth Sdn Bhd
email: info@millionairesplanet.com
website: www.millionairesplanet.com
tel: 03-7880 1051
fax: 03-7880 8051
Monday, December 06, 2004
The top 10 myths of divorce
1. Half of all marriages end in divorce.
That may have been the case several decades ago, but the divorce rate has been dropping since the early 1980s. If today's divorce rate continues unchanged into the future, the chances that a marriage contracted this year will end in divorce before one partner dies has been estimated to be between 40 and 45 percent.
2. Because people learn from their bad experiences, second marriages tend to be more successful than first marriages.
Although many people who divorce have successful subsequent marriages, the divorce rate of remarriages is in fact higher than that of first marriages.
3. Living together before marriage is a good way to reduce the chances of eventually divorcing.
Many studies have found that those who live together before marriage have a considerably higher chance of eventually divorcing. The reasons for this are not well understood. In part, the type of people who are willing to cohabit may also be those who are more willing to divorce. There is some evidence that the act of cohabitation itself generates attitudes in people that are more conducive to divorce, for example the attitude that relationships are temporary and easily can be ended.
4. Divorce may cause problems for many of the children who are affected by it, but by and large these problems are not long lasting and the children recover relatively quickly.
Divorce increases the risk of interpersonal problems in children. There is evidence, both from small qualitative studies and from large-scale, long-term empirical studies, that many of these problems are long lasting. In fact, they may even become worse in adulthood.
5. Having a child together will help a couple to improve their marital satisfaction and prevent a divorce.
Many studies have shown that the most stressful time in a marriage is after the first child is born. Couples who have a child together have a slightly decreased risk of divorce compared to couples without children, but the decreased risk is far less than it used to be when parents with marital problems were more likely to stay together "for the sake of the children."
6. Following divorce, the woman's standard of living plummets by 73 percent while that of the man's improves by 42 percent.
This dramatic inequity, one of the most widely publicized statistics from the social sciences, was later found to be based on a faulty calculation. A reanalysis of the data determined that the woman's loss was 27 percent while the man's gain was 10 percent. Irrespective of the magnitude of the differences, the gender gap is real and seems not to have narrowed much in recent decades.
7. When parents don't get along, children are better off if their parents divorce than if they stay together.
A recent large-scale, long-term study suggests otherwise. While it found that parents' marital unhappiness and discord have a broad negative impact on virtually every dimension of their children's well-being, so does the fact of going through a divorce. In examining the negative impacts on children more closely, the study discovered that it was only the children in very high conflict homes who benefited from the conflict removal that divorce may bring. In lower-conflict marriages that end in divorce ~ and the study found that perhaps as many as two thirds of the divorces were of this type ~ the situation of the children was made much worse following a divorce. Based on the findings of this study, therefore, except in the minority of high-conflict marriages it is better for the children if their parents stay together and work out their problems than if they divorce.
8. Because they are more cautious in entering marital relationships and also have a strong determination to avoid the possibility of divorce, children who grow up in a home broken by divorce tend to have as much success in their own marriages as those from intact homes.
Marriages of the children of divorce actually have a much higher rate of divorce than the marriages of children from intact families. A major reason for this, according to a recent study, is that children learn about marital commitment or permanence by observing their parents. In the children of divorce, the sense of commitment to a lifelong marriage has been undermined.
9. Following divorce, the children involved are better off in stepfamilies than in single-parent families.
The evidence suggests that stepfamilies are no improvement over single-parent families, even though typically income levels are higher and there is a father figure in the home. Stepfamilies tend to have their own set of problems, including interpersonal conflicts with new parent figures and a very high risk of family breakup.
10. Being very unhappy at certain points in a marriage is a good sign that the marriage will eventually end in divorce.
All marriages have their ups and downs. Recent research using a large national sample found that eighty six percent of people who were unhappily married in the late 1980s, and stayed with the marriage, indicated when interviewed five years later that they were happier. Indeed, three fifths of the formerly unhappily married couples rated their marriages as either "very happy" or "quite happy."
Additional Myths:
It is usually men who initiate divorce proceedings.
Two-thirds of all divorces are initiated by women. One recent study found that many of the reasons for this have to do with the nature of our divorce laws. For example, in most states women have a good
chance of receiving custody of their children. Because women more strongly want to keep their children with them, in states where there is a presumption of shared custody with the husband the percentage of
women who initiate divorces is much lower.
Also, the higher rate of women initiators is probably due to the fact that men are more likely to be "badly behaved." Husbands, for example, are more likely than wives to have problems with drinking, drug abuse,
and infidelity.
That may have been the case several decades ago, but the divorce rate has been dropping since the early 1980s. If today's divorce rate continues unchanged into the future, the chances that a marriage contracted this year will end in divorce before one partner dies has been estimated to be between 40 and 45 percent.
2. Because people learn from their bad experiences, second marriages tend to be more successful than first marriages.
Although many people who divorce have successful subsequent marriages, the divorce rate of remarriages is in fact higher than that of first marriages.
3. Living together before marriage is a good way to reduce the chances of eventually divorcing.
Many studies have found that those who live together before marriage have a considerably higher chance of eventually divorcing. The reasons for this are not well understood. In part, the type of people who are willing to cohabit may also be those who are more willing to divorce. There is some evidence that the act of cohabitation itself generates attitudes in people that are more conducive to divorce, for example the attitude that relationships are temporary and easily can be ended.
4. Divorce may cause problems for many of the children who are affected by it, but by and large these problems are not long lasting and the children recover relatively quickly.
Divorce increases the risk of interpersonal problems in children. There is evidence, both from small qualitative studies and from large-scale, long-term empirical studies, that many of these problems are long lasting. In fact, they may even become worse in adulthood.
5. Having a child together will help a couple to improve their marital satisfaction and prevent a divorce.
Many studies have shown that the most stressful time in a marriage is after the first child is born. Couples who have a child together have a slightly decreased risk of divorce compared to couples without children, but the decreased risk is far less than it used to be when parents with marital problems were more likely to stay together "for the sake of the children."
6. Following divorce, the woman's standard of living plummets by 73 percent while that of the man's improves by 42 percent.
This dramatic inequity, one of the most widely publicized statistics from the social sciences, was later found to be based on a faulty calculation. A reanalysis of the data determined that the woman's loss was 27 percent while the man's gain was 10 percent. Irrespective of the magnitude of the differences, the gender gap is real and seems not to have narrowed much in recent decades.
7. When parents don't get along, children are better off if their parents divorce than if they stay together.
A recent large-scale, long-term study suggests otherwise. While it found that parents' marital unhappiness and discord have a broad negative impact on virtually every dimension of their children's well-being, so does the fact of going through a divorce. In examining the negative impacts on children more closely, the study discovered that it was only the children in very high conflict homes who benefited from the conflict removal that divorce may bring. In lower-conflict marriages that end in divorce ~ and the study found that perhaps as many as two thirds of the divorces were of this type ~ the situation of the children was made much worse following a divorce. Based on the findings of this study, therefore, except in the minority of high-conflict marriages it is better for the children if their parents stay together and work out their problems than if they divorce.
8. Because they are more cautious in entering marital relationships and also have a strong determination to avoid the possibility of divorce, children who grow up in a home broken by divorce tend to have as much success in their own marriages as those from intact homes.
Marriages of the children of divorce actually have a much higher rate of divorce than the marriages of children from intact families. A major reason for this, according to a recent study, is that children learn about marital commitment or permanence by observing their parents. In the children of divorce, the sense of commitment to a lifelong marriage has been undermined.
9. Following divorce, the children involved are better off in stepfamilies than in single-parent families.
The evidence suggests that stepfamilies are no improvement over single-parent families, even though typically income levels are higher and there is a father figure in the home. Stepfamilies tend to have their own set of problems, including interpersonal conflicts with new parent figures and a very high risk of family breakup.
10. Being very unhappy at certain points in a marriage is a good sign that the marriage will eventually end in divorce.
All marriages have their ups and downs. Recent research using a large national sample found that eighty six percent of people who were unhappily married in the late 1980s, and stayed with the marriage, indicated when interviewed five years later that they were happier. Indeed, three fifths of the formerly unhappily married couples rated their marriages as either "very happy" or "quite happy."
Additional Myths:
It is usually men who initiate divorce proceedings.
Two-thirds of all divorces are initiated by women. One recent study found that many of the reasons for this have to do with the nature of our divorce laws. For example, in most states women have a good
chance of receiving custody of their children. Because women more strongly want to keep their children with them, in states where there is a presumption of shared custody with the husband the percentage of
women who initiate divorces is much lower.
Also, the higher rate of women initiators is probably due to the fact that men are more likely to be "badly behaved." Husbands, for example, are more likely than wives to have problems with drinking, drug abuse,
and infidelity.
The Top Ten Myths of Marriage
by David Popenoe
1. Marriage benefits men much more than women.
Contrary to earlier and widely publicized reports, recent research
finds men and women to benefit about equally from marriage, although
in different ways. Both men and women live longer, happier, healthier
and wealthier lives when they are married. Husbands typically gain
greater health benefits while wives gain greater financial advantages.
2. Having children typically brings a married couple closer together
and increases marital happiness.
Many studies have shown that the arrival of the first baby commonly
has the effect of pushing the mother and father farther apart, and
bringing stress to the marriage. However, couples with children have a
slightly lower rate of divorce than childless couples.
3. The keys to long-term marital success are good luck and romantic love.
Rather than luck and love, the most common reasons couples give for
their long-term marital success are commitment and companionship. They
define their marriage as a creation that has taken hard work,
dedication and commitment (to each other and to the institution of
marriage). The happiest couples are friends who share lives and are
compatible in interests and values.
4. The more educated a woman becomes, the lower are her chances of
getting married.
A recent study based on marriage rates in the mid-1990s concluded that
today's women college graduates are more likely to marry than their
non-college peers, despite their older age at first marriage. This is
a change from the past, when women with more
education were less likely to marry.
5. Couples who live together before marriage, and are thus able to
test how well suited they are for each other, have more satisfying and
longer-lasting marriages than couples who do not.
Many studies have found that those who live together before marriage
have less satisfying marriages and a considerably higher chance of
eventually breaking up. One reason is that people who cohabit may be
more skittish of commitment and more likely to call it quits when
problems arise. But in addition, the very act of living together may
lead to attitudes that make happy marriages more difficult. The
findings of one recent study, for example, suggest "there may be less
motivation for cohabiting partners to develop their conflict
resolution and support skills." (One important exception: cohabiting
couples who are already planning to marry each other in the near
future have just as good a chance at staying together as couples who
don't live together before marriage).
6. People can't be expected to stay in a marriage for a lifetime as
they did in the past because we live so much longer today.
Unless our comparison goes back a hundred years, there is no basis for
this belief. The enormous increase in longevity is due mainly to a
steep reduction in infant mortality. And while adults today can expect
to live a little longer than their grandparents, they also marry at a
later age. The life span of a typical, divorce-free marriage,
therefore, has not changed much in the past fifty years. Also, many
couples call it quits long before they get to a significant
anniversary: half of all divorces take place by the seventh year of a
marriage.
7. Marrying puts a woman at greater risk of domestic violence than if
she remains single.
Contrary to the proposition that for men "a marriage licence is a
hitting licence," a large body of research shows that being unmarried
~ and especially living with a man outside of marriage ~ is associated
with a considerably higher risk of domestic violence for women. One
reason for this finding is that married women may significantly
underreport domestic violence. Further, women are less likely to marry
and more likely to divorce a man who is violent. Yet it is probably
also the case that married men are less likely to commit domestic
violence because they are more invested in their wives' wellbeing, and
more integrated into the extended family and community. These social
forces seem to help check men's violent behaviour.
8. Married people have less satisfying sex lives, and less sex, than
single people.
According to a large-scale national study, married people have both
more and better sex than do their unmarried counterparts. Not only do
they have sex more often but they enjoy it more, both physically and
emotionally.
9. Cohabitation is just like marriage, but without "the piece of paper."
Cohabitation typically does not bring the benefits ~ in physical
health, wealth, and emotional wellbeing ~ that marriage does. In terms
of these benefits cohabitants in the United States more closely
resemble singles than married couples. This is due, in part, to the
fact that cohabitants tend not to be as committed as married couples,
and they are more oriented toward their own personal autonomy and less
to the wellbeing of their partner.
10. Because of the high divorce rate, which weeds out the unhappy
marriages, people who stay married have happier marriages than people
did in the past when everyone stuck it out, no matter how bad the
marriage.
According to what people have reported in several large national
surveys, the general level of happiness in marriages has not increased
and probably has declined slightly. Some studies have found in recent
marriages, compared to those of twenty or thirty years ago,
significantly more work-related stress, more marital conflict and less
marital interaction.
1. Marriage benefits men much more than women.
Contrary to earlier and widely publicized reports, recent research
finds men and women to benefit about equally from marriage, although
in different ways. Both men and women live longer, happier, healthier
and wealthier lives when they are married. Husbands typically gain
greater health benefits while wives gain greater financial advantages.
2. Having children typically brings a married couple closer together
and increases marital happiness.
Many studies have shown that the arrival of the first baby commonly
has the effect of pushing the mother and father farther apart, and
bringing stress to the marriage. However, couples with children have a
slightly lower rate of divorce than childless couples.
3. The keys to long-term marital success are good luck and romantic love.
Rather than luck and love, the most common reasons couples give for
their long-term marital success are commitment and companionship. They
define their marriage as a creation that has taken hard work,
dedication and commitment (to each other and to the institution of
marriage). The happiest couples are friends who share lives and are
compatible in interests and values.
4. The more educated a woman becomes, the lower are her chances of
getting married.
A recent study based on marriage rates in the mid-1990s concluded that
today's women college graduates are more likely to marry than their
non-college peers, despite their older age at first marriage. This is
a change from the past, when women with more
education were less likely to marry.
5. Couples who live together before marriage, and are thus able to
test how well suited they are for each other, have more satisfying and
longer-lasting marriages than couples who do not.
Many studies have found that those who live together before marriage
have less satisfying marriages and a considerably higher chance of
eventually breaking up. One reason is that people who cohabit may be
more skittish of commitment and more likely to call it quits when
problems arise. But in addition, the very act of living together may
lead to attitudes that make happy marriages more difficult. The
findings of one recent study, for example, suggest "there may be less
motivation for cohabiting partners to develop their conflict
resolution and support skills." (One important exception: cohabiting
couples who are already planning to marry each other in the near
future have just as good a chance at staying together as couples who
don't live together before marriage).
6. People can't be expected to stay in a marriage for a lifetime as
they did in the past because we live so much longer today.
Unless our comparison goes back a hundred years, there is no basis for
this belief. The enormous increase in longevity is due mainly to a
steep reduction in infant mortality. And while adults today can expect
to live a little longer than their grandparents, they also marry at a
later age. The life span of a typical, divorce-free marriage,
therefore, has not changed much in the past fifty years. Also, many
couples call it quits long before they get to a significant
anniversary: half of all divorces take place by the seventh year of a
marriage.
7. Marrying puts a woman at greater risk of domestic violence than if
she remains single.
Contrary to the proposition that for men "a marriage licence is a
hitting licence," a large body of research shows that being unmarried
~ and especially living with a man outside of marriage ~ is associated
with a considerably higher risk of domestic violence for women. One
reason for this finding is that married women may significantly
underreport domestic violence. Further, women are less likely to marry
and more likely to divorce a man who is violent. Yet it is probably
also the case that married men are less likely to commit domestic
violence because they are more invested in their wives' wellbeing, and
more integrated into the extended family and community. These social
forces seem to help check men's violent behaviour.
8. Married people have less satisfying sex lives, and less sex, than
single people.
According to a large-scale national study, married people have both
more and better sex than do their unmarried counterparts. Not only do
they have sex more often but they enjoy it more, both physically and
emotionally.
9. Cohabitation is just like marriage, but without "the piece of paper."
Cohabitation typically does not bring the benefits ~ in physical
health, wealth, and emotional wellbeing ~ that marriage does. In terms
of these benefits cohabitants in the United States more closely
resemble singles than married couples. This is due, in part, to the
fact that cohabitants tend not to be as committed as married couples,
and they are more oriented toward their own personal autonomy and less
to the wellbeing of their partner.
10. Because of the high divorce rate, which weeds out the unhappy
marriages, people who stay married have happier marriages than people
did in the past when everyone stuck it out, no matter how bad the
marriage.
According to what people have reported in several large national
surveys, the general level of happiness in marriages has not increased
and probably has declined slightly. Some studies have found in recent
marriages, compared to those of twenty or thirty years ago,
significantly more work-related stress, more marital conflict and less
marital interaction.
Of Like and Love...
In front of the person you love, winter seems like spring.
But in front of the person you like, winter is just beautiful winter.
If you look into the eyes of the one you like, you blush.
But if you look into the eyes of the one you love, you smile.
In front of the person you like, you can't say everything on your mind.
But in front of the person you love, you can.
In front of the person you like, you tend to get shy.
But in front of the person you love, you can show your own self.
You can't look straight into the eyes of the one you like.
But you can always smile and stare into the eyes of the one you love.
But in front of the person you like, winter is just beautiful winter.
If you look into the eyes of the one you like, you blush.
But if you look into the eyes of the one you love, you smile.
In front of the person you like, you can't say everything on your mind.
But in front of the person you love, you can.
In front of the person you like, you tend to get shy.
But in front of the person you love, you can show your own self.
You can't look straight into the eyes of the one you like.
But you can always smile and stare into the eyes of the one you love.
Saturday, December 04, 2004
How to Lose Weight...
Hi, Azlan Adnan
Finally got it... I found a compelling reason to lose weight. I've been stubborn in getting my eyes checked... you've guessed it... All my family members needs corrective eyewear... I have been asked time and time again to have my eyes checked as I have been seen squinting more lately... I always thought - as long as I can see, I'm ok. I'm the one that does not need a laser pointer in meetings because I'll be only 3 feet away from the projection screen... (heck, even my boss has reprimanded me for not taking serious care of my eyesight)
Then one week back into work from the Raya holidays - I had headaches everyday - so... I went & had them made... my first pair of glasses... at 32 Was advised I have no shortsightedness - just really bad astigmatism.. Just picked up the glasses last night - I can see fine lines now...
Got home, took a shower, got out of the bathroom and thought I'll try on the glasses... turned to the full length mirror and ARGGGHHHHHHHHH!!!!!!!!!!!!!!!!!!!!!! I no longer feel ok about how I look naked... or clothed for that matter...
ai-ya-ya, I have been seeing the world in soft focused vision! Maybe that's the reason I have always preferred blurred lines rather than solid ones... whatever... I was not in denial, I was just plain blind
for goodness sakes! so... If you were so kind to share some of your secrets on losing weight... I'd be much obliged... I told my sister what I've just discovered...
I think she is still rolling on the floor laughing out loud... this morning...
"New Vision"
Dear "New Vision"
The best book I've read about losing weight is "The Thin Book by the Formerly Fat Psychiatrist," unfortunately now out of print.
The basic principle. calorie in less than calorie out.
How do we accomplish this?
Start exercising. Sweat at least 20 minutes a day. You can do whatever exercise you like as long as you enjoy it and sweat for 20 minutes EVERY day. Don't start on a 3 hr run and collapse when you get home and not exercise again for a week. The concept is each and every day, calorie in less than calorie out. Got it?
When you are ready, increase your sweating to 30 minutes a day. when you make the change doesn't matter ~ a week, a month, whenever. As long as you FEEL ready and don't slack back to 20 minutes. Once you go for 30 minutes for sweating a day, keep it at 30! Remember exercise that doesn't produce sweat doesn't count!
You have to change the way you see food. No more makan from pinggan with nasi and lauk on other dishes.
Get a big plate. Put everything you intend to eat for the meal on that plate. And I mean everything - nasi, lauk, ulam, sambal, sayur, ikan, telur masin, whatever. (Only exceptions are fruits ~ you can eat as much fruit as you like as long as it's not durian lah)
Eat your meal slowly. Savour every bite. Enjoy it thoroughly. At the end of the meal, you are faced with 2 scenarios:
1) everything on the plate finished but you still hungry and want to eat more. SORRY! No way. Wait for next meal. Load up your plate more this time. Learn from the mistake at the last meal.
2) You dah kenyang but ada lagi food on your plate. Learn to adjust what you put on your plate. Put less for next meal.
Actually visualize how much you need to eat for a meal. With practice, you akan ambil cukup2 untuk for the meal. Then when you want to eat less, you can adjust accordingly.
remember calorie in less than calorie out.
So next strategy. Eat less calories. How do you do this without feeling hungry? Simple. Eat high-fibre, low calorie foods.
More fruits and vege. Less carbo, less protein and even less fat.
Visualise you are what you eat. At each meal time, look (no, stare) at your plate and imagine the food you are about to eat becoming part of you. Do you want the lemak in the perut lembu to clog up your arteries? Or do you want the vitamins, enzymes and goodness of fruits and veg to make you healthy? Then eat your meal. Slowly, savour and enjoy every bite.
Develop aversions. Look at fatty food, unhealthy food, fats, cake, chocolate, whatever. You at it until you can see how it will destroy your body, your looks. Feel a distaste and disgust for these foods. Feel the aversion when you put these foods in your mouth. You will stop eating these poisons.
5 Deadly White Sins
Cut down or eliminate these foods:
White Sugar - substitute with raw, unprocessed complex sugars like honey, dates
White Rice - start eating more chappati
White Flour - eat brown bread, chappati, no more roti chanai or tosai
Salt, bad for high blood pressure
Milk, too much hormones and antibiotics in farming nowadays. These stuff will poison our body.
Okaylah. I'll give you more only if you feel you can commit to the above. If cannot, no point I give you more tips.
--
Azlan Adnan, MA International Business and Management
H/P: +60 12-383 1324
Fax: +60 3-2032 1128
E-mail: azlan088@gmail.com
http://www.geocities.com/azlan088
http://azlanadnan.blogspot.com
http://www.lulu.com/azlan
Finally got it... I found a compelling reason to lose weight. I've been stubborn in getting my eyes checked... you've guessed it... All my family members needs corrective eyewear... I have been asked time and time again to have my eyes checked as I have been seen squinting more lately... I always thought - as long as I can see, I'm ok. I'm the one that does not need a laser pointer in meetings because I'll be only 3 feet away from the projection screen... (heck, even my boss has reprimanded me for not taking serious care of my eyesight)
Then one week back into work from the Raya holidays - I had headaches everyday - so... I went & had them made... my first pair of glasses... at 32 Was advised I have no shortsightedness - just really bad astigmatism.. Just picked up the glasses last night - I can see fine lines now...
Got home, took a shower, got out of the bathroom and thought I'll try on the glasses... turned to the full length mirror and ARGGGHHHHHHHHH!!!!!!!!!!!!!!!!!!!!!! I no longer feel ok about how I look naked... or clothed for that matter...
ai-ya-ya, I have been seeing the world in soft focused vision! Maybe that's the reason I have always preferred blurred lines rather than solid ones... whatever... I was not in denial, I was just plain blind
for goodness sakes! so... If you were so kind to share some of your secrets on losing weight... I'd be much obliged... I told my sister what I've just discovered...
I think she is still rolling on the floor laughing out loud... this morning...
"New Vision"
Dear "New Vision"
The best book I've read about losing weight is "The Thin Book by the Formerly Fat Psychiatrist," unfortunately now out of print.
The basic principle. calorie in less than calorie out.
How do we accomplish this?
Start exercising. Sweat at least 20 minutes a day. You can do whatever exercise you like as long as you enjoy it and sweat for 20 minutes EVERY day. Don't start on a 3 hr run and collapse when you get home and not exercise again for a week. The concept is each and every day, calorie in less than calorie out. Got it?
When you are ready, increase your sweating to 30 minutes a day. when you make the change doesn't matter ~ a week, a month, whenever. As long as you FEEL ready and don't slack back to 20 minutes. Once you go for 30 minutes for sweating a day, keep it at 30! Remember exercise that doesn't produce sweat doesn't count!
You have to change the way you see food. No more makan from pinggan with nasi and lauk on other dishes.
Get a big plate. Put everything you intend to eat for the meal on that plate. And I mean everything - nasi, lauk, ulam, sambal, sayur, ikan, telur masin, whatever. (Only exceptions are fruits ~ you can eat as much fruit as you like as long as it's not durian lah)
Eat your meal slowly. Savour every bite. Enjoy it thoroughly. At the end of the meal, you are faced with 2 scenarios:
1) everything on the plate finished but you still hungry and want to eat more. SORRY! No way. Wait for next meal. Load up your plate more this time. Learn from the mistake at the last meal.
2) You dah kenyang but ada lagi food on your plate. Learn to adjust what you put on your plate. Put less for next meal.
Actually visualize how much you need to eat for a meal. With practice, you akan ambil cukup2 untuk for the meal. Then when you want to eat less, you can adjust accordingly.
remember calorie in less than calorie out.
So next strategy. Eat less calories. How do you do this without feeling hungry? Simple. Eat high-fibre, low calorie foods.
More fruits and vege. Less carbo, less protein and even less fat.
Visualise you are what you eat. At each meal time, look (no, stare) at your plate and imagine the food you are about to eat becoming part of you. Do you want the lemak in the perut lembu to clog up your arteries? Or do you want the vitamins, enzymes and goodness of fruits and veg to make you healthy? Then eat your meal. Slowly, savour and enjoy every bite.
Develop aversions. Look at fatty food, unhealthy food, fats, cake, chocolate, whatever. You at it until you can see how it will destroy your body, your looks. Feel a distaste and disgust for these foods. Feel the aversion when you put these foods in your mouth. You will stop eating these poisons.
5 Deadly White Sins
Cut down or eliminate these foods:
White Sugar - substitute with raw, unprocessed complex sugars like honey, dates
White Rice - start eating more chappati
White Flour - eat brown bread, chappati, no more roti chanai or tosai
Salt, bad for high blood pressure
Milk, too much hormones and antibiotics in farming nowadays. These stuff will poison our body.
Okaylah. I'll give you more only if you feel you can commit to the above. If cannot, no point I give you more tips.
--
Azlan Adnan, MA International Business and Management
H/P: +60 12-383 1324
Fax: +60 3-2032 1128
E-mail: azlan088@gmail.com
http://www.geocities.com/azlan088
http://azlanadnan.blogspot.com
http://www.lulu.com/azlan
Monday, November 29, 2004
New Freedom Commission on Mental Health
From the British Medical Journal
http://bmj.bmjjournals.com/cgi/content/full/328/7454/1458
BMJ 2004;328:1458 (19 June), doi:10.1136/bmj.328.7454.1458
Bush plans to screen whole US population for mental illness
Jeanne Lenzer
New York
A sweeping mental health initiative will be unveiled by President George
W Bush in July. The plan promises to integrate mentally ill patients
fully into the community by providing "services in the community, rather
than institutions," according to a March 2004 progress report entitled
New Freedom Initiative
(www.whitehouse.gov/infocus/newfreedom/toc-2004.html). While some praise
the plan's goals, others say it protects the profits of drug companies
at the expense of the public.
Bush established the New Freedom Commission on Mental Health in April
2002 to conduct a "comprehensive study of the United States mental
health service delivery system." The commission issued its
recommendations in July 2003. Bush instructed more than 25 federal
agencies to develop an implementation plan based on those recommendations.
The president's commission found that "despite their prevalence, mental
disorders often go undiagnosed" and recommended comprehensive mental
health screening for "consumers of all ages," including preschool
children. According to the commission, "Each year, young children are
expelled from preschools and childcare facilities for severely
disruptive behaviours and emotional disorders." Schools, wrote the
commission, are in a "key position" to screen the 52 million students
and 6 million adults who work at the schools.
The commission also recommended "Linkage [of screening] with treatment
and supports" including "state-of-the-art treatments" using "specific
medications for specific conditions." The commission commended the Texas
Medication Algorithm Project (TMAP) as a "model" medication treatment
plan that "illustrates an evidence-based practice that results in better
consumer outcomes."
Dr Darrel Regier, director of research at the American Psychiatric
Association (APA), lauded the president's initiative and the Texas
project model saying, "What's nice about TMAP is that this is a logical
plan based on efficacy data from clinical trials."
He said the association has called for increased funding for
implementation of the overall plan.
But the Texas project, which promotes the use of newer, more expensive
antidepressants and antipsychotic drugs, sparked off controversy when
Allen Jones, an employee of the Pennsylvania Office of the Inspector
General, revealed that key officials with influence over the medication
plan in his state received money and perks from drug companies with a
stake in the medication algorithm (15 May, p1153). He was sacked this
week for speaking to the BMJ and the New York Times.
The Texas project started in 1995 as an alliance of individuals from the
pharmaceutical industry, the University of Texas, and the mental health
and corrections systems of Texas. The project was funded by a Robert
Wood Johnson grant—and by several drug companies.
Mr Jones told the BMJ that the same "political/pharmaceutical alliance"
that generated the Texas project was behind the recommendations of the
New Freedom Commission, which, according to his whistleblower report,
were "poised to consolidate the TMAP effort into a comprehensive
national policy to treat mental illness with expensive, patented
medications of questionable benefit and deadly side effects, and to
force private insurers to pick up more of the tab"
(http://psychrights.org/Drugs/AllenJonesTMAPJanuary20.pdf).
Larry D Sasich, research associate with Public Citizen in Washington,
DC, told the BMJ that studies in both the United States and Great
Britain suggest that "using the older drugs first makes sense. There's
nothing in the labeling of the newer atypical antipsychotic drugs that
suggests they are superior in efficacy to haloperidol [an older
"typical" antipsychotic]. There has to be an enormous amount of
unnecessary expenditures for the newer drugs."
Drug companies have contributed three times more to the campaign of
George Bush, seen here campaigning in Florida, than to that of his rival
John Kerry
Credit: GERALD HERBERT/AP
Olanzapine (trade name Zyprexa), one of the atypical antipsychotic drugs
recommended as a first line drug in the Texas algorithm, grossed $4.28bn
(£2.35bn; {euro}3.56bn) worldwide in 2003 and is Eli Lilly's top selling
drug. A 2003 New York Times article by Gardiner Harris reported that 70%
of olanzapine sales are paid for by government agencies, such as
Medicare and Medicaid.
Eli Lilly, manufacturer of olanzapine, has multiple ties to the Bush
administration. George Bush Sr was a member of Lilly's board of
directors and Bush Jr appointed Lilly's chief executive officer, Sidney
Taurel, to a seat on the Homeland Security Council. Lilly made $1.6m in
political contributions in 2000—82% of which went to Bush and the
Republican Party.
Jones points out that the companies that helped to start up the Texas
project have been, and still are, big contributors to the election funds
of George W Bush. In addition, some members of the New Freedom
Commission have served on advisory boards for these same companies,
while others have direct ties to the Texas Medication Algorithm Project.
Bush was the governor of Texas during the development of the Texas
project, and, during his 2000 presidential campaign, he boasted of his
support for the project and the fact that the legislation he passed
expanded Medicaid coverage of psychotropic drugs.
Bush is the clear front runner when it comes to drug company
contributions. According to the Center for Responsive Politics (CRP),
manufacturers of drugs and health products have contributed $764 274 to
the 2004 Bush campaign through their political action committees and
employees—far outstripping the $149 400 given to his chief rival, John
Kerry, by 26 April.
Drug companies have fared exceedingly well under the Bush
administration, according to the centre's spokesperson, Steven Weiss.
The commission's recommendation for increased screening has also been
questioned. Robert Whitaker, journalist and author of Mad in America,
says that while increased screening "may seem defensible," it could also
be seen as "fishing for customers," and that exorbitant spending on new
drugs "robs from other forms of care such as job training and shelter
programmes."
But Dr Graham Emslie, who helped develop the Texas project, defends
screening: "There are good data showing that if you identify kids at an
earlier age who are aggressive, you can intervene... and change their
trajectory."
Related letters in BMJ:
Bush plans to screen whole US population for mental illness: Is road of
initiative paved with good intentions?
Woody Caan
BMJ 2004 329: 292. [Letter]
Bush plans to screen whole US population for mental illness: An unlikely
public healthcare initiative
John R Broomfield
BMJ 2004 329: 292. [Letter]
Bush plans to screen whole US population for mental illness: Bush's
sanity test is revealed
Archie W Julien
BMJ 2004 329: 292. [Letter]
Bush plans to screen whole US population for mental illness: Summary of
responses
Birte Twisselmann
BMJ 2004 329: 292-293. [Letter]
Other related articles in BMJ:
News
Whistleblower removed from job for talking to the press.
Jeanne Lenzer
BMJ 2004 328: 1153. [Extract] [Full text]
News
Whistleblower charges medical oversight bureau with corruption.
Jeanne Lenzer
BMJ 2004 329: 69. [Extract] [Full text]
News
FDA's counsel accused of being too close to drug industry.
Jeanne Lenzer
BMJ 2004 329: 189. [Extract] [Full text]
News
Bush launches controversial mental health plan.
Jeanne Lenzer
BMJ 2004 329: 367. [Extract] [Full text]
News roundup
Bush's plan to screen for mental health meets opposition in Illinois.
Jeanne Lenzer
BMJ 2004 329: 1065. [Extract] [Abridged text] [Full text]
http://bmj.bmjjournals.com/cgi/content/full/328/7454/1458
BMJ 2004;328:1458 (19 June), doi:10.1136/bmj.328.7454.1458
Bush plans to screen whole US population for mental illness
Jeanne Lenzer
New York
A sweeping mental health initiative will be unveiled by President George
W Bush in July. The plan promises to integrate mentally ill patients
fully into the community by providing "services in the community, rather
than institutions," according to a March 2004 progress report entitled
New Freedom Initiative
(www.whitehouse.gov/infocus/newfreedom/toc-2004.html). While some praise
the plan's goals, others say it protects the profits of drug companies
at the expense of the public.
Bush established the New Freedom Commission on Mental Health in April
2002 to conduct a "comprehensive study of the United States mental
health service delivery system." The commission issued its
recommendations in July 2003. Bush instructed more than 25 federal
agencies to develop an implementation plan based on those recommendations.
The president's commission found that "despite their prevalence, mental
disorders often go undiagnosed" and recommended comprehensive mental
health screening for "consumers of all ages," including preschool
children. According to the commission, "Each year, young children are
expelled from preschools and childcare facilities for severely
disruptive behaviours and emotional disorders." Schools, wrote the
commission, are in a "key position" to screen the 52 million students
and 6 million adults who work at the schools.
The commission also recommended "Linkage [of screening] with treatment
and supports" including "state-of-the-art treatments" using "specific
medications for specific conditions." The commission commended the Texas
Medication Algorithm Project (TMAP) as a "model" medication treatment
plan that "illustrates an evidence-based practice that results in better
consumer outcomes."
Dr Darrel Regier, director of research at the American Psychiatric
Association (APA), lauded the president's initiative and the Texas
project model saying, "What's nice about TMAP is that this is a logical
plan based on efficacy data from clinical trials."
He said the association has called for increased funding for
implementation of the overall plan.
But the Texas project, which promotes the use of newer, more expensive
antidepressants and antipsychotic drugs, sparked off controversy when
Allen Jones, an employee of the Pennsylvania Office of the Inspector
General, revealed that key officials with influence over the medication
plan in his state received money and perks from drug companies with a
stake in the medication algorithm (15 May, p1153). He was sacked this
week for speaking to the BMJ and the New York Times.
The Texas project started in 1995 as an alliance of individuals from the
pharmaceutical industry, the University of Texas, and the mental health
and corrections systems of Texas. The project was funded by a Robert
Wood Johnson grant—and by several drug companies.
Mr Jones told the BMJ that the same "political/pharmaceutical alliance"
that generated the Texas project was behind the recommendations of the
New Freedom Commission, which, according to his whistleblower report,
were "poised to consolidate the TMAP effort into a comprehensive
national policy to treat mental illness with expensive, patented
medications of questionable benefit and deadly side effects, and to
force private insurers to pick up more of the tab"
(http://psychrights.org/Drugs/AllenJonesTMAPJanuary20.pdf).
Larry D Sasich, research associate with Public Citizen in Washington,
DC, told the BMJ that studies in both the United States and Great
Britain suggest that "using the older drugs first makes sense. There's
nothing in the labeling of the newer atypical antipsychotic drugs that
suggests they are superior in efficacy to haloperidol [an older
"typical" antipsychotic]. There has to be an enormous amount of
unnecessary expenditures for the newer drugs."
Drug companies have contributed three times more to the campaign of
George Bush, seen here campaigning in Florida, than to that of his rival
John Kerry
Credit: GERALD HERBERT/AP
Olanzapine (trade name Zyprexa), one of the atypical antipsychotic drugs
recommended as a first line drug in the Texas algorithm, grossed $4.28bn
(£2.35bn; {euro}3.56bn) worldwide in 2003 and is Eli Lilly's top selling
drug. A 2003 New York Times article by Gardiner Harris reported that 70%
of olanzapine sales are paid for by government agencies, such as
Medicare and Medicaid.
Eli Lilly, manufacturer of olanzapine, has multiple ties to the Bush
administration. George Bush Sr was a member of Lilly's board of
directors and Bush Jr appointed Lilly's chief executive officer, Sidney
Taurel, to a seat on the Homeland Security Council. Lilly made $1.6m in
political contributions in 2000—82% of which went to Bush and the
Republican Party.
Jones points out that the companies that helped to start up the Texas
project have been, and still are, big contributors to the election funds
of George W Bush. In addition, some members of the New Freedom
Commission have served on advisory boards for these same companies,
while others have direct ties to the Texas Medication Algorithm Project.
Bush was the governor of Texas during the development of the Texas
project, and, during his 2000 presidential campaign, he boasted of his
support for the project and the fact that the legislation he passed
expanded Medicaid coverage of psychotropic drugs.
Bush is the clear front runner when it comes to drug company
contributions. According to the Center for Responsive Politics (CRP),
manufacturers of drugs and health products have contributed $764 274 to
the 2004 Bush campaign through their political action committees and
employees—far outstripping the $149 400 given to his chief rival, John
Kerry, by 26 April.
Drug companies have fared exceedingly well under the Bush
administration, according to the centre's spokesperson, Steven Weiss.
The commission's recommendation for increased screening has also been
questioned. Robert Whitaker, journalist and author of Mad in America,
says that while increased screening "may seem defensible," it could also
be seen as "fishing for customers," and that exorbitant spending on new
drugs "robs from other forms of care such as job training and shelter
programmes."
But Dr Graham Emslie, who helped develop the Texas project, defends
screening: "There are good data showing that if you identify kids at an
earlier age who are aggressive, you can intervene... and change their
trajectory."
Related letters in BMJ:
Bush plans to screen whole US population for mental illness: Is road of
initiative paved with good intentions?
Woody Caan
BMJ 2004 329: 292. [Letter]
Bush plans to screen whole US population for mental illness: An unlikely
public healthcare initiative
John R Broomfield
BMJ 2004 329: 292. [Letter]
Bush plans to screen whole US population for mental illness: Bush's
sanity test is revealed
Archie W Julien
BMJ 2004 329: 292. [Letter]
Bush plans to screen whole US population for mental illness: Summary of
responses
Birte Twisselmann
BMJ 2004 329: 292-293. [Letter]
Other related articles in BMJ:
News
Whistleblower removed from job for talking to the press.
Jeanne Lenzer
BMJ 2004 328: 1153. [Extract] [Full text]
News
Whistleblower charges medical oversight bureau with corruption.
Jeanne Lenzer
BMJ 2004 329: 69. [Extract] [Full text]
News
FDA's counsel accused of being too close to drug industry.
Jeanne Lenzer
BMJ 2004 329: 189. [Extract] [Full text]
News
Bush launches controversial mental health plan.
Jeanne Lenzer
BMJ 2004 329: 367. [Extract] [Full text]
News roundup
Bush's plan to screen for mental health meets opposition in Illinois.
Jeanne Lenzer
BMJ 2004 329: 1065. [Extract] [Abridged text] [Full text]
Sunday, November 28, 2004
TRAVELLERS & MAGICIAN
In the Buddhist kingdom of Bhutan, nestled deep in the Himalayas, two men seek to escape their mundane lives. Dondup, an educated university graduate decides that he will be better off picking apples in the US than working as a government officer in a remote rural village. Tashi, a restless farm youth studying magic, cannot bear the thought of a life consigned to his village. Through a trick of his brother, he is delivered into a dream world of seduction and intrigue.
The two men embark on parallel, if separate, journeys. Their yearning is a common one ~ for a better and different life. Dondup, delayed by the timeless pace of his village, is forced to hitchhike through the beautiful wild countryside of Bhutan to reach his goal. He shares the road with a monk, an apple seller, a rice-paper maker and his beautiful young daughter, Sonam.
Throughout the journey the perceptive, yet mischievous, monk relates the story of Tashi. It is a mystical fable of lust, jealousy and murder, that holds up a mirror to the restless Dondup, and his blossoming attraction to innocent Sonam.
The cataclysmic conclusion of the monk's tale leaves Dondup with a dilemma ~ is the grass truly greener on the other side?
"A peach blossom is beautiful only because it is temporary."
"Hope causes pain."
The two men embark on parallel, if separate, journeys. Their yearning is a common one ~ for a better and different life. Dondup, delayed by the timeless pace of his village, is forced to hitchhike through the beautiful wild countryside of Bhutan to reach his goal. He shares the road with a monk, an apple seller, a rice-paper maker and his beautiful young daughter, Sonam.
Throughout the journey the perceptive, yet mischievous, monk relates the story of Tashi. It is a mystical fable of lust, jealousy and murder, that holds up a mirror to the restless Dondup, and his blossoming attraction to innocent Sonam.
The cataclysmic conclusion of the monk's tale leaves Dondup with a dilemma ~ is the grass truly greener on the other side?
"A peach blossom is beautiful only because it is temporary."
"Hope causes pain."
Saturday, November 27, 2004
WHAT IS TRUE LOVE?
It was a busy morning, approximately 8:30 am, when an elderly gentleman, in his 80's, presented to have sutures (stitches) removed from his thumb.
He stated that he was in a hurry as he had an appointment at 9:00 am.
I took his vital signs and had him take a seat, knowing it would be over an hour before someone would to able to see him.
I saw him looking at his watch and decided, since I was not busy with another patient, I would evaluate his wound.
On examination it was well healed, so I talked to one of the doctors, got the needed supplies to remove his sutures and redress his wound.
While taking care of his wound, we began to engage in conversation. I asked him if he had a doctor's appointment this morning, as he was in such a hurry.
The gentleman told me no, that he needed to go to the nursing home to eat breakfast with his wife.
I then inquired as to her health. He told me that she had been there for a while and that she was a victim of Alzheimer's Disease.
As we talked, and I finished dressing his wound, I asked if she would be worried if he was a bit late.
He replied that she no longer knew who he was, that she had not recognized him in five years now.
I was surprised, and I asked him, "And you are still going every morning, even though she doesn't know who you are?"
He smiled as he patted my hand and said... "She doesn't know me, but I still know who she is."
I had to hold back tears as he left, I had goose bumps on my arm, and thought, "That is the kind of love I want in my life."
True love is neither physical, nor romantic.
True love is an acceptance of all that is,
has been, will be, and will not be.
He stated that he was in a hurry as he had an appointment at 9:00 am.
I took his vital signs and had him take a seat, knowing it would be over an hour before someone would to able to see him.
I saw him looking at his watch and decided, since I was not busy with another patient, I would evaluate his wound.
On examination it was well healed, so I talked to one of the doctors, got the needed supplies to remove his sutures and redress his wound.
While taking care of his wound, we began to engage in conversation. I asked him if he had a doctor's appointment this morning, as he was in such a hurry.
The gentleman told me no, that he needed to go to the nursing home to eat breakfast with his wife.
I then inquired as to her health. He told me that she had been there for a while and that she was a victim of Alzheimer's Disease.
As we talked, and I finished dressing his wound, I asked if she would be worried if he was a bit late.
He replied that she no longer knew who he was, that she had not recognized him in five years now.
I was surprised, and I asked him, "And you are still going every morning, even though she doesn't know who you are?"
He smiled as he patted my hand and said... "She doesn't know me, but I still know who she is."
I had to hold back tears as he left, I had goose bumps on my arm, and thought, "That is the kind of love I want in my life."
True love is neither physical, nor romantic.
True love is an acceptance of all that is,
has been, will be, and will not be.
Sunday, November 21, 2004
Books By Writer Azlan Adnan Now Available at www.lulu.com
Dear Friends
Just a short email to let you know that I have published my works at:
http://www.lulu.com/azlan
They are going for as little as US$1 or US$2 for the e-book download version in pdf format. Many are beautifully illustrated in full colour.
I have already published 20 works on a variety of topics from business history, to meditation to romance and psychiatry and more will be uploaded in the coming weeks.
Thank you.
--
Azlan Adnan, MA International Business and Management
H/P: +60 12-383 1324
Fax: +60 3-2032 1128
E-mail: azlan088@gmail.com
http://geocities.com/azlan088
http://azlanadnan.blogspot.com
www.lulu.com/azlan
Saturday, November 20, 2004
The Nurse
She's a very attractive Malay girl. Petite, brunette and with a charming smile and warm glow to her blushing cheeks. I saw that they were operating on a large animal (could be a zebra) and could see they had just removed the liver, which had green spots on it. I thought that was unusual and asked my friend what's wrong with the liver. He kinda kept quiet. I thought he wanted to concentrate on whatever else he was removing next.
I glanced at the nurse who just gave me a warm smile. When I asked again, my friend still hesitated to tell me, but finally he gave me a bullshit answer: that the liver was polarised. Of course, that didn't make any sense. After the procedure, they all scrubbed up and had lunch. I gladly joined them, thinking it would be a good chance to be introduced to the nurse and "chat her up." But she went away.
As she was leaving, I asked her if she wasn't having lunch and she replied she wasn't having any because she was nauseous. I asked her if it was the operation.
She said, "Oh, no, I'm used to that. I have morning sickness."
Copyright 2003-2004 Azlan Adnan Legal Notice
Wednesday, November 17, 2004
FOR SALE: Ducati Monster
Ducati Monster, 600 c.c., 1994 model
Excellent condition, like new
Very well-maintained, low mileage weekend bike
RM21,000 or nearest offer
Contact: Azlan 012-383 1324
Notes:
Ducati's Monster 600 is the best-selling motorcycle in Italy, where it's considered an icon of contemporary design. Is this the sexiest beginner bike on the planet? At the very least it's the most exotic looking. Despite its name, the Monster is as welcoming to new riders as any 600 cc standard or sportbike on the market. Like all 600 cc motorcycles, though, it's for those who have mastered the basic maneuvers of motorcycling. If that's you, the Ducati's V-twin engine delivers power in an extremely friendly, usable manner, and the striking lattice frame offers excellent handling. And the engine makes that distinctive Ducati roar. Seat height: 30.3 inches.
Copyright 2003-2004 Azlan Adnan Legal Notice
Tuesday, November 16, 2004
Re: Message from Mrs Ruth w. Kabila
Dear Mrs Ruth w. Kabila
I'm surprised you are writing to me because your son James had already
contacted me last month and transferred the US$22 million into my bank
account last week.
Don't worry, the money is in safe hands, I'm keeping all of it.
> ----------------------------------------------------------------------
>On Tue, 16 Nov 2004 05:13:52 -0800, Mrs Ruth w. Kabila
ru_j2003_4@yahoo.co.uk wrote:
>
>
>
> From: Mrs Ruth w. Kabila. Please Contact here: ru_j2003_4@yahoo.co.uk
> confidential Reasons. MY Dear, I am Mrs.Ruth w. Kabila, from Democratic
> Republic of Congo. There is an imformation I would like you to keep very
> confidential There is sum ammount of money my Husband Late President Laurent
> Kabila, deposited in a security company Abidjan Cote d\'ivoire for safe
> keeping. Before he was killed by his Eldest Millitary Son. The squable
> happened as immediately we returned back from our London trip. My husband
> married us two.I am the second wife.I will not be able to give you the full
> details that led to that urgly incidents. The Eldest Son is the current
> President of our country now. For now I am staying in Abijdan, the capital
> of Republic of Cote d\'voire,just to save my life,with my three children.
> The money in question, is 22, Million U.S.Dollars. I can not make the
> withdrawal of this fund, because my husband registered the Beneficiary of
> the fund as his (Foriegn Bussiness Patner) and also (Family valuables as the
> content of the deposit) The documents of the deposit are with me. What I
> would want you to do, is to assits me to get the consignment withdrawn from
> the security company, and we shall open a small account in a Bank here in
> your name, and transfer the money to your country, through the account .We
> shall replace the name Foriegn Patner to your own name, because the code was
> used for security reason. I will give you the 10% of the money for your
> assitance.Ther is no risk in this transaction. I will use the remain balance
> of the money for an investiment in your country for the future of my
> children. If you are intrested, and can maintain the very confidential of
> this transaction,you e-mail me immediately for more clearification, and also
> note that I am a refugees in Abidjan, Cote d' lvoire becuase of the
> assasnation of late husband,and the civil war going on in our
> country,Democratic Republic of Congo. I can speak little english, and my son
> also speaks english very well his name is James and his tell is:00225 07 17
> 70 22.you can call him for more information. Thank you very much. Mrs.Ruth
> w. Kabila. Please Contact here: ru_j2003_4@yahoo.co.uk confidential Reasons.
>
> ----------------------------------------------------------------------
I'm surprised you are writing to me because your son James had already
contacted me last month and transferred the US$22 million into my bank
account last week.
Don't worry, the money is in safe hands, I'm keeping all of it.
> ----------------------------------------------------------------------
>On Tue, 16 Nov 2004 05:13:52 -0800, Mrs Ruth w. Kabila
ru_j2003_4@yahoo.co.uk wrote:
>
>
>
> From: Mrs Ruth w. Kabila. Please Contact here: ru_j2003_4@yahoo.co.uk
> confidential Reasons. MY Dear, I am Mrs.Ruth w. Kabila, from Democratic
> Republic of Congo. There is an imformation I would like you to keep very
> confidential There is sum ammount of money my Husband Late President Laurent
> Kabila, deposited in a security company Abidjan Cote d\'ivoire for safe
> keeping. Before he was killed by his Eldest Millitary Son. The squable
> happened as immediately we returned back from our London trip. My husband
> married us two.I am the second wife.I will not be able to give you the full
> details that led to that urgly incidents. The Eldest Son is the current
> President of our country now. For now I am staying in Abijdan, the capital
> of Republic of Cote d\'voire,just to save my life,with my three children.
> The money in question, is 22, Million U.S.Dollars. I can not make the
> withdrawal of this fund, because my husband registered the Beneficiary of
> the fund as his (Foriegn Bussiness Patner) and also (Family valuables as the
> content of the deposit) The documents of the deposit are with me. What I
> would want you to do, is to assits me to get the consignment withdrawn from
> the security company, and we shall open a small account in a Bank here in
> your name, and transfer the money to your country, through the account .We
> shall replace the name Foriegn Patner to your own name, because the code was
> used for security reason. I will give you the 10% of the money for your
> assitance.Ther is no risk in this transaction. I will use the remain balance
> of the money for an investiment in your country for the future of my
> children. If you are intrested, and can maintain the very confidential of
> this transaction,you e-mail me immediately for more clearification, and also
> note that I am a refugees in Abidjan, Cote d' lvoire becuase of the
> assasnation of late husband,and the civil war going on in our
> country,Democratic Republic of Congo. I can speak little english, and my son
> also speaks english very well his name is James and his tell is:00225 07 17
> 70 22.you can call him for more information. Thank you very much. Mrs.Ruth
> w. Kabila. Please Contact here: ru_j2003_4@yahoo.co.uk confidential Reasons.
>
> ----------------------------------------------------------------------
Re: [enquiry] Viagra - 75% OFF
No thanks, Richard K. Lee!
Unlike you, I don't need any help in that department, Mr Flaccid!
Ha! Ha!
On Tue, 16 Nov 2004 12:27:17 +0000, Richard K. Lee
hongtao@1singaporeonline.com wrote:
Stable & rock hard erections
Increased stamina & endurance
No. 1 men's health drug
No prescription needed
VIAGRA:
http://www.platinummed.biz
Choose the manufacturer you can trust!
Discreet shipping to any location
To change your mail details, go here: http://www.platinummed.biz/uns.htm
Unlike you, I don't need any help in that department, Mr Flaccid!
Ha! Ha!
On Tue, 16 Nov 2004 12:27:17 +0000, Richard K. Lee
hongtao@1singaporeonline.com wrote:
Stable & rock hard erections
Increased stamina & endurance
No. 1 men's health drug
No prescription needed
VIAGRA:
http://www.platinummed.biz
Choose the manufacturer you can trust!
Discreet shipping to any location
To change your mail details, go here: http://www.platinummed.biz/uns.htm
Sunday, November 14, 2004
3Cs GUIDELINES TO PROPER MOTOR INSURANCE COVERAGE
The General Insurance Association of Malaysia (PIAM) offers a simple 3Cs Guideline to help motor vehicle owners and drivers ensure that they are indeed properly insured.
Consumers are advised to:
1) Complete their motor insurance proposal forms honestly and accurately before signing it.
2) Check their policies upon receipt to ensure the information stated is accurate.
3) Contact their insurers if the information in their policies is inaccurate or they need to update the information in their existing policies.
Whether it is buying a new or renewing an existing motor policy or when submitting a claim, PIAM's Executive Director C.F. Lim said that it is critical that consumers provide the following information accurately:
* New IC number of Policyholder/Driver
* Make and Model of Vehicle
* Year of Manufacture of Vehicle
* Capacity of Vehicle
* Gender of Policyholder/Driver
* Age of Policyholder
* Residential Address of Policyholder/Location where Claim Occurred
Lim also advises consumers to never sign blank proposal forms. The information contained in the proposal forms the basis of the insurance contract and, if not accurate, may result in the contract being repudiated in event of a claim. This is an important responsibility on the part of the consumer in ensuring that they receive the cover that they pay for.
Consumers are also advised to check through their policies upon receipt to ensure that the information provided in the proposal form have been correctly transferred to the policy document. The policy is the official contract between the consumer and the insurance company and hence, must be accurate and updated.
Furthermore, consumers, to safeguard their own interest, must report any discrepancies in either their proposal forms or the policy documents to their insurers.
"There have been cases where the consumers have had their cars stolen and filed their claims with their insurance companies only to discover that they have third party and not comprehensive insurance covers,"
says Lim.
Besides strongly urging consumers to provide accurate information and checking their documents to ensure that they receive the cover that they have paid for, Lim says that PIAM also collates this data from its member companies for statistical analysis so as to continue its work towards a fairer and more equitable motor premium rating. The information is also used in identifying and combatting incidences of motor insurance fraud.
PIAM is the national trade association of all the licensed general insurance companies in Malaysia. Currently, PIAM has 54 member companies.
You have just bought your own set of wheels and can't wait to "get your motor running" on our spacious highways. Before you rev that engine up and hit the road, the law requires drivers of motor vehicles to buy motor insurance.
The latest motor accident statistics reveal that over 215,000 motor vehicles were involved in accidents in 1997, a 14 per cent increase from the previous year. Moreover, with more than one out of four Malaysians owning either a motorcycle or a motorcar, it is no wonder that motor insurance is a mandatory requirement.
It is also for this reason many of us do not comprehend the role motor insurance plays in protecting us against a loss or accident which may result in serious damage to our motor vehicles or injury to another person. When we purchase a motor insurance, we are in fact protecting our investment, which, at today's prices, is probably the second most valuable asset after our home.
How do we receive protection from our motor insurance?
To receive this protection, we, as policy holders, pay a premium to our appointed insurer. The insurer will then accumulate all premiums collected into a fund which is then used to compensate any policyholder who is unfortunate enough to suffer a loss from a motor accident. Thus, a loss is paid from the premiums made by the unfortunate policyholders and by all the other policyholders who have not met with an accident.
What are the types of motor insurance covers available?
Choosing the right insurance policy is much like choosing the right motor vehicle. It is required to fit our individual needs and lifestyle but at the same time be within our budget. Although, the Road Transport Act 1987 requires us to have a minimum third party liability coverage, other types of coverage are usually optional.
The key to finding which coverage is best for you involves learning about the three types of motor insurance covers in Malaysia. They are the 'Act Only', 'Third Party' and 'Comprehensive.'
Act Only
The Act Only motor insurance policy provides the minimum cover required by the law, thus giving rise to the name. Under this Act, drivers of motor vehicles have to buy motor insurance to ensure that drivers can meet their liabilities if they injure or cause the death of other people in an accident. Act Only policies are rarely purchased as the insurance protection is quite limited.
Third Party
Third Party motor insurance is wider than 'Act Only' insurance. Besides giving cover against death and injury to third parties, it provides protection against other legal liabilities such as damage to the property of a third party (usually somebody else's car or motorcycle or a neighbour's gate) and certain specified legal costs.
Under the Third Party cover, a policyholder may opt to include protection for loss or damage to own vehicle due to fire or theft only (known as Third Party Fire & Theft). However, most policyholders have found it is more cost-effective and worthwhile to pay a little bit more and be protected under the Comprehensive motor insurance policy instead.
Comprehensive
While Comprehensive motor insurance policy is the widest form of cover available, it does not provide cover for every conceivable type of risk. In addition to that covered in Act Only and Third Party motor insurance, the Comprehensive insurance policy also gives a number of other types of protection including loss or damage to the motor vehicle as a result of fire or theft. More importantly, this policy covers accidental damages to the insured's own vehicle. This additional cover enables the vehicle owner to have his vehicle repaired, reinstated or replaced in case of accidental damage or loss.
On top of these three main categories of motor insurance policies, other additional coverage are available for:
1) Breakage of glass in windscreens or windows
2) Floods, landslide, landslip or other convulsion of nature
3) Legal liability of passengers for acts of negligence (such as the passenger opening his car door and causing an accident with an moving vehicle)
4) Use of private cars for tuition purposes (such as teaching a novice driver how to drive using one's private car)
Car owners are advised to enquire with their agents or insurers on these additional coverage and others as these usually involve additional premiums.
What are the steps to take when making an accident claim?
If an accident occurs, you must follow certain procedures to protect yourself.
Firstly, you must stop your vehicle and exchange particulars with all the other people involved in the accident. In particular, you should:
1) Obtain name(s) and address(es) of other driver(s) involved.
2) Note their vehicle registration number(s) and make of vehicle.
3) Ask for the name of their insurers and their policy or certificate number.
4) Note names and address of independent witnesses and make a rough diagram of the accident.
5) It is your duty to produce your Certificate of Insurance when required to do so by the police.
6) If this information is not available at the scene of the accident, you will be required to produce it to the police within five days.
7) If there is injury to any person or damage to another vehicle, or other property, give your name and address of the owner of the vehicle you are driving and its registration number to anyone who has reasonable grounds of wanting them.
8) Do not discuss whose fault it was as this may create difficulties for your insurers in their handling of your claim. In particular, DO NOT ADMIT LIABILITY even if you think you are in the wrong. It not for you to determine this. Leave it to the loss adjuster or the court to decide, once all facts of the case and sides of the story are considered.
9) Inform your insurers as soon as possible even if you do not intend to make a claim. This is a condition of your policy.
10) Fill in the insurer's accident report form completely and include any additional relevant information not given in answer to direct questions. It is your legal duty to DISCLOSE ALL MATERIAL FACTS.
Once you have reported an accident and your car has been towed to the nearest police station or panel workshop approved by your insurer, your insurer will send a loss adjuster to assess the damage to your car and identify the circumstances of the accident.
A loss adjuster is a specialist whose job is to find out what really happened and how it happened. He will recommend to the insurer how much to settle a claim for in each particular case.
To take advantage of my Free Road Tax Renewal Reminder Service, click here. Please direct your questions on motor or general insurance to:
Azlan Adnan
Tel: 012-383 1324
E-mail: azlan.aig@gmail.com
Consumers are advised to:
1) Complete their motor insurance proposal forms honestly and accurately before signing it.
2) Check their policies upon receipt to ensure the information stated is accurate.
3) Contact their insurers if the information in their policies is inaccurate or they need to update the information in their existing policies.
Whether it is buying a new or renewing an existing motor policy or when submitting a claim, PIAM's Executive Director C.F. Lim said that it is critical that consumers provide the following information accurately:
* New IC number of Policyholder/Driver
* Make and Model of Vehicle
* Year of Manufacture of Vehicle
* Capacity of Vehicle
* Gender of Policyholder/Driver
* Age of Policyholder
* Residential Address of Policyholder/Location where Claim Occurred
Lim also advises consumers to never sign blank proposal forms. The information contained in the proposal forms the basis of the insurance contract and, if not accurate, may result in the contract being repudiated in event of a claim. This is an important responsibility on the part of the consumer in ensuring that they receive the cover that they pay for.
Consumers are also advised to check through their policies upon receipt to ensure that the information provided in the proposal form have been correctly transferred to the policy document. The policy is the official contract between the consumer and the insurance company and hence, must be accurate and updated.
Furthermore, consumers, to safeguard their own interest, must report any discrepancies in either their proposal forms or the policy documents to their insurers.
"There have been cases where the consumers have had their cars stolen and filed their claims with their insurance companies only to discover that they have third party and not comprehensive insurance covers,"
says Lim.
Besides strongly urging consumers to provide accurate information and checking their documents to ensure that they receive the cover that they have paid for, Lim says that PIAM also collates this data from its member companies for statistical analysis so as to continue its work towards a fairer and more equitable motor premium rating. The information is also used in identifying and combatting incidences of motor insurance fraud.
PIAM is the national trade association of all the licensed general insurance companies in Malaysia. Currently, PIAM has 54 member companies.
You have just bought your own set of wheels and can't wait to "get your motor running" on our spacious highways. Before you rev that engine up and hit the road, the law requires drivers of motor vehicles to buy motor insurance.
The latest motor accident statistics reveal that over 215,000 motor vehicles were involved in accidents in 1997, a 14 per cent increase from the previous year. Moreover, with more than one out of four Malaysians owning either a motorcycle or a motorcar, it is no wonder that motor insurance is a mandatory requirement.
It is also for this reason many of us do not comprehend the role motor insurance plays in protecting us against a loss or accident which may result in serious damage to our motor vehicles or injury to another person. When we purchase a motor insurance, we are in fact protecting our investment, which, at today's prices, is probably the second most valuable asset after our home.
How do we receive protection from our motor insurance?
To receive this protection, we, as policy holders, pay a premium to our appointed insurer. The insurer will then accumulate all premiums collected into a fund which is then used to compensate any policyholder who is unfortunate enough to suffer a loss from a motor accident. Thus, a loss is paid from the premiums made by the unfortunate policyholders and by all the other policyholders who have not met with an accident.
What are the types of motor insurance covers available?
Choosing the right insurance policy is much like choosing the right motor vehicle. It is required to fit our individual needs and lifestyle but at the same time be within our budget. Although, the Road Transport Act 1987 requires us to have a minimum third party liability coverage, other types of coverage are usually optional.
The key to finding which coverage is best for you involves learning about the three types of motor insurance covers in Malaysia. They are the 'Act Only', 'Third Party' and 'Comprehensive.'
Act Only
The Act Only motor insurance policy provides the minimum cover required by the law, thus giving rise to the name. Under this Act, drivers of motor vehicles have to buy motor insurance to ensure that drivers can meet their liabilities if they injure or cause the death of other people in an accident. Act Only policies are rarely purchased as the insurance protection is quite limited.
Third Party
Third Party motor insurance is wider than 'Act Only' insurance. Besides giving cover against death and injury to third parties, it provides protection against other legal liabilities such as damage to the property of a third party (usually somebody else's car or motorcycle or a neighbour's gate) and certain specified legal costs.
Under the Third Party cover, a policyholder may opt to include protection for loss or damage to own vehicle due to fire or theft only (known as Third Party Fire & Theft). However, most policyholders have found it is more cost-effective and worthwhile to pay a little bit more and be protected under the Comprehensive motor insurance policy instead.
Comprehensive
While Comprehensive motor insurance policy is the widest form of cover available, it does not provide cover for every conceivable type of risk. In addition to that covered in Act Only and Third Party motor insurance, the Comprehensive insurance policy also gives a number of other types of protection including loss or damage to the motor vehicle as a result of fire or theft. More importantly, this policy covers accidental damages to the insured's own vehicle. This additional cover enables the vehicle owner to have his vehicle repaired, reinstated or replaced in case of accidental damage or loss.
On top of these three main categories of motor insurance policies, other additional coverage are available for:
1) Breakage of glass in windscreens or windows
2) Floods, landslide, landslip or other convulsion of nature
3) Legal liability of passengers for acts of negligence (such as the passenger opening his car door and causing an accident with an moving vehicle)
4) Use of private cars for tuition purposes (such as teaching a novice driver how to drive using one's private car)
Car owners are advised to enquire with their agents or insurers on these additional coverage and others as these usually involve additional premiums.
What are the steps to take when making an accident claim?
If an accident occurs, you must follow certain procedures to protect yourself.
Firstly, you must stop your vehicle and exchange particulars with all the other people involved in the accident. In particular, you should:
1) Obtain name(s) and address(es) of other driver(s) involved.
2) Note their vehicle registration number(s) and make of vehicle.
3) Ask for the name of their insurers and their policy or certificate number.
4) Note names and address of independent witnesses and make a rough diagram of the accident.
5) It is your duty to produce your Certificate of Insurance when required to do so by the police.
6) If this information is not available at the scene of the accident, you will be required to produce it to the police within five days.
7) If there is injury to any person or damage to another vehicle, or other property, give your name and address of the owner of the vehicle you are driving and its registration number to anyone who has reasonable grounds of wanting them.
8) Do not discuss whose fault it was as this may create difficulties for your insurers in their handling of your claim. In particular, DO NOT ADMIT LIABILITY even if you think you are in the wrong. It not for you to determine this. Leave it to the loss adjuster or the court to decide, once all facts of the case and sides of the story are considered.
9) Inform your insurers as soon as possible even if you do not intend to make a claim. This is a condition of your policy.
10) Fill in the insurer's accident report form completely and include any additional relevant information not given in answer to direct questions. It is your legal duty to DISCLOSE ALL MATERIAL FACTS.
Once you have reported an accident and your car has been towed to the nearest police station or panel workshop approved by your insurer, your insurer will send a loss adjuster to assess the damage to your car and identify the circumstances of the accident.
A loss adjuster is a specialist whose job is to find out what really happened and how it happened. He will recommend to the insurer how much to settle a claim for in each particular case.
To take advantage of my Free Road Tax Renewal Reminder Service, click here. Please direct your questions on motor or general insurance to:
Azlan Adnan
Tel: 012-383 1324
E-mail: azlan.aig@gmail.com
Road Traffic Safety Tips
Focus on your driving
Drive with a large "anticipation zone." Look down the road far enough to get a big picture of what's ahead.
Keep your radio at a reasonable volume.
Do not drive when under stress.
Don't talk to passengers too much and if need be, ask them to help navigate.
Do not day dream.
Make sure you can see clearly.
Get annual eye check-ups.
Clean the inside and outside of your windshield and windows. Clean the mirrors and headlights, too. Dirt can reduce headlight output by as much as 70 per cent.
Turn on your lights when driving in the rain, no matter what time of day it is. Slow down in rainy weather.
Always turn lights on when driving during the half hour before sunset and the half hour after sunrise.
Do not wear tinted glasses or sunglasses when driving in low light.
Take extra steps to be a cautious driver
Always tell other drivers what you intend to do. Use your directional signals. Position your car in the proper lane. When necessary, use your horn to show your intentions.
Check your mirrors frequently.
Glance over your shoulder, and in your mirrors, before changing lanes. Do not assume that only using turn signals will make the move safe.
Always look behind before putting the car in reverse.
Watch for flashing lights from emergency vehicles, as you may no always hear the siren.
Adjust the headrest so that the top of the headrest is aligned with the top of the driver's head. This prevents incidence of whiplash in event of collision.
Copyright 2001-2004, Persatuan Insuran Am Malaysia
The Importance of Financial Literacy Among Women in Asia
Bank Negara Malaysia Governor's Special Address
at the Citigroup-INSEAD Women's Financial Education Summit 2004
Speaker: Governor Tan Sri Dato' Sri Dr Zeti Akhtar Aziz
Venue: Hong Kong
Date: 02 November 2004
Language: English
Introduction
Asia represents the fastest growing region in the global economy. Of
significance, is that more than half the population in Asia are women.
The participation of women in the economy would therefore not only
enhance their own economic well being but would also contribute
towards raising further the economic potential of Asia. Women are
already engaged in both the informal and formal sectors and are
increasingly emerging as a more important force in the economy. The
effective participation, however, needs to be an informed
participation. Financial literacy among women becomes an important
part of this process, regardless of the income constituency to which
they belong. There needs to be a better understanding of their
financial rights and responsibilities, and their opportunities for
income generation and the associated risks and costs involved. This
is particularly important for Asia, where rapid economic and financial
transformation is occurring. Financial literacy among women is thus a
vital part of this process, not only to promote greater engagement of
women in the current economic environment, but also to prepare them
for the future.
It is my great honour and pleasure to be here today to speak on the
importance of financial literacy among women in Asia. My remarks
today will first discuss some of the major structural and cultural
transformations in Asia that are changing and impacting the economic
environment faced by women in Asia, and their rapidly changing role in
the economy. I will also touch on aspects of the challenges faced by
women in Asia in their endeavour for greater economic engagement.
This will be followed by a discussion on the important enablers for
enhanced financial literacy and to share with you Malaysia's
experience in driving a more financially literate society in
particular, that enhances the inclusion of women in the economic
mainstream.
Ladies and Gentlemen,
Asia is being transformed. For more than two decades now we have seen
unprecedented structural and cultural changes in Asia that have
resulted in the transformation of the environment faced by women.
Asia has emerged as the fastest growing region in the world with GDP
in Asia now accounting for 23% of the world economy, compared to 17%
in 1980. Per capita income during this period has more than
quadrupled. If these trends continue, by the year 2020 Asia will
account for about 27% of the world economy while the income per capita
would have further tripled. These dynamic changes have made financial
literacy among women even more vital.
Indeed, against these favourable trends, there has been a growing
participation of women in the growth and development process in Asia.
In particular, there has been a strong migration from the informal to
the formal sector, following the modernisation and industrialisation
process. The increase in the relative significance of the financial
sector in most Asian economies can be seen in terms of the momentum in
the financialisation of savings and the increase in the volume of
financial transactions being conducted through the formal financial
sector. These trends are being reinforced by the shift of activities
that is taking place from the traditional sectors to the industrial
and services sectors. On average, the industrial and services sector
now accounts for 74% of the economy in Asia, compared to 60% in 1980.
In contrast, agriculture now accounts for 12%, compared to 26% in
1980. Involved in this transformation, women have demonstrated a high
degree of mobility, participating in all segments of economic
activity. Most discernable is the increasing participation of women in
the services sector. Here in Hong Kong, the percentage of women in
the services sector relative to the total population increased from
43% in 1980 to 87% in 1999. Similarly in Indonesia, the rise was from
32% to 42%, and in Malaysia, it was from 33% to 57% and in Thailand,
from 18% to 34%.
In Asia, the demographic structure also reinforces the economic
potential of Asia. The population in Asia continues to grow at a
relatively high and stable rate to account for more than half the
world's population. Of significance is the relatively young
demographic structure in Asia. More than 50% of women fall in the age
group 15 to 49 years, similar to that for men. This demographic
structure thus not only contributes to enhance the potential of the
economy but combined with rising incomes and improved standards of
living, has resulted in increases in consumption spending. This
resultant increase in purchasing power has strengthened domestic
demand, making it an important driver of growth in the Asian
economies. Indeed, these trends have strengthened the sustainability
of consumption-based growth. As part of this process, women have
become an important consumer target group with enhanced purchasing
power. In fact, in several of the Asian economies, women are emerging
as a key target market. This greater capacity for earning, spending,
saving and investing requires ability for financial management, and
hence the urgency for greater financial literacy
While financial literacy is important, regardless of economic status,
it becomes even more important for those that are less privileged.
For those that have less to manage, it becomes more vital to manage
the finances even more effectively. It is also those that have been
under-served by the financial system that need to be more aware of the
financial services that they should be able to access, and the
benefits that can be drawn from the various options available. They
too have the same need for maximising the benefits from their limited
resources, and to achieving financial and economic security.
Strengthening their financial position becomes even more important for
this target group. There needs to be awareness of the alternative
assets that can be accumulated not only to generate an income stream
but also towards building wealth. Of equal importance is to draw
those operating in the informal sector into the formal sector, where
their financial requirements, whether households or businesses can be
better served.
A further phenomenon taking place in Asia is the increased regional
economic and financial integration that is taking place. This has
manifested itself in increased intra-regional trade, investment flows
and the increased intra-regional presence of corporations and
financial institutions. A more recent phenomenon is the increased
mobility of labour in the region. Of significance is the number of
women who have ventured beyond their own borders in search of new
employment opportunities. While data on this is not available, the
statistics on remittances of income show this is a growing trend.
Overseas employment is particularly evident in the manufacturing and
services sectors. Financial literacy under these circumstances
becomes even more vital. In venturing to new areas where different
systems, languages and cultures prevail, it becomes important to have
knowledge of the basic financial matters so as to maximise the
benefits the new employment is expected to yield.
As the formal economies of Asia prosper and grow, there is a greater
need to integrate the informal sectors of the economy with the formal
sector. There are millions of women in Asia involved in a wide range
of economic activities from the home, making handicraft, assembling
parts for international brand names and working in the fields. They
work for a small income, and generally in difficult circumstances.
Deliberate actions to integrate the informal economy into the formal
economy will give this segment of society increased opportunities. In
many countries, the success of various national and international
socio-economic reform programs have resulted in women becoming an
increasing part of the formal economy. Through the concerted efforts
of women's rights movements, economic policy intervention and gradual
shifts in cultural norms, women today have more opportunities for
education, careers and political representation. However, in many
instances the increase in participation in the formal economy has not
come with a commensurate level of sophistication in financial
literacy. As a result, women continue to face special challenges in
their endeavour to be active participants in the economic system.
Challenges women in Asia face in financial literacy
Let me now turn to discuss some of the challenges faced by women in
Asia in their endeavour to become more financially literate and
financially independent.
1) Firstly, with the socio-economic environment in Asia
changing rapidly, there is greater uncertainty and volatility which
represents a challenge even for financial experts. The financial
system has also become more complex, with new risks emerging. This
increased sophistication thus makes it increasingly difficult for
those who are less financially literate to make sound decisions.
2) Secondly, the advances in technology has led to a
proliferation of financial products and services. There needs to be a
greater understanding of the basic concepts and practices of banking,
insurance and equity so as to know how to make choices from the wide
range of financial products available, and to assess the respective
risks, costs and returns. Also important is the basic principles of
debt management, wealth management and personal budgeting to be able
to understand the importance of long-term savings in funding future
requirements.
Financial literacy involves being able to identify and understand the
opportunities for income generation, access to funding, and learning
how to make the most of the range of financial products available. It
also involves learning how to manage financial risks in an environment
where the financial infrastructure may be under developed. This may
relate to the laws and procedures in the country. Also important is
the need to be able to recognize illegal schemes and other
exploitative practices such as predatory lending.
3) Thirdly, while women in Asia are being less stereotyped and
given greater opportunities for entering into the economic mainstream,
nonetheless the working conditions for women in many countries have
tended to be less favourable. The exploitation of labour in the
informal sector in some instances are particularly bad, not only for
women, but also for children and minority groups. Women who are
disadvantaged in this manner have found it difficult to escape from
the trap of indebtedness.
Frequently, the disadvantaged and those who are not able to access the
formal financial system have resorted to the informal financial
systems. Recourse to these financial sources have also been due to
the lack of awareness. These may be in the form of deposit schemes
that entail high risk, access to financing from sources that are
highly costly, and almost inevitably against high collateral. Very
often, the practices are unfair and deceptive. Examples in predatory
lending are found to be unscrupulous and highly disadvantageous to the
borrower.
4) Fourthly, in some Asian societies, traditions continue to
create cultural pressures that restrict a woman's choices and
liberties. Though there is increased freedom for women to pursue
education and careers, in some societies, cultural pressures still
make it more difficult for a woman to get the exposure on financial
matters. In addition, the increased incidence of divorces and single
parenthood mean that more women are left to fend for themselves and
their children. In certain Asian societies, single women may face
unusual difficulties in arranging their finances. In some cases, a
woman may even have difficulty claiming her legal rights in a
contract, even though the law does not dispute such a right. Deeply
entrenched human behaviour is not able to change as rapidly as the
financial system is evolving.
5) Fifthly, statistics on life expectancy confirm that women
tend to live longer. In segments of society where women earn less than
men, combined with the fact that they may live longer, it is crucial
to have financial acumen in order to increase the financial
independence of women. This trend also magnifies the need to plan for
retirement especially in an era of rising medical costs.
Ladies and Gentlemen,
Enabling Environment for Financial Literacy
The promotion of greater awareness and understanding in financial
issues in a dynamic and constantly changing environment has to be a
continuous process. The effort needs to focus not only on providing
education programmes but also on putting in place the supporting
infrastructure to enhance the access to financial services, to ensure
an environment of financial transparency and disclosure as well as
adequate consumer protection. Enhanced financial literacy is about
bringing people into the financial mainstream so that they are able to
make well informed decisions regarding their earnings, spending,
savings and investments. The effort thus has to encompass a
comprehensive set of strategies including the education process
reinforced by the supporting infrastructure.
The goal of any financial education programme is to increase awareness
of the value of effective financial management, to show how it can
contribute to financial security and improvement in the economic
well-being. The most effective of programmes have been those that are
targeted to specific groups. Fundamental education for greater
financial literacy that will have most sustainable impact are those
through the school system. Such educational programmes would provide
the education to women from an early age. Essentially, it would not
result in the marginalisation of anyone target group, in particular
women. Such programmes would therefore best serve its purpose as part
of the core curriculum. Indeed, the national education system can play
a pivotal role in financial literacy within a country.
The responsibility of promoting economic and financial literacy needs
to be a collaborative effort amongst the authorities, the financial
service providers and the community to connect to the different target
groups including all social groups. These would include the lower
income groups, workers and businesses. Important are programmes
directed to families where women have an important role and to engage
those we have not been able to participate fully to benefit from the
favourable economic environment prevailing in the region.
Among the successful financial education programmes are those with
specific objectives that are tailored to meet particular needs. This
includes programmes to promote savings for specific objectives; for
education; or for retirement. The education programmes can also be
linked to other objectives such as good health, house ownership and so
on. Financial products can be tailored for such purposes to not only
to promote interest but to also meet these objectives.
All distribution channels need to be relied on to maximise the
effectiveness of financial education programmes. Formal training
programmes can be reinforced by web based content via the Internet.
The World Wide Web offers dramatic economies of scale in terms of
distribution of content at low cost. Connectivity to the Internet can
serve to bring information from all over the world to the local
education system. Iterative programmes can be useful to encourage
participation. Web based programmes while requiring computer literacy,
has a wider outreach and allows for flexibility of time that is of
particular importance to women.
A further means by which financial advice is provided is through
financial advisors. Financial advisors are able to address the issues
for the more sophisticated investors. Similarly, infrastructure for
advisory services for small businesses is key. This can in particular
be provided by financial institutions. Systems need to be in place
where consumers and businesses are explained their rights and
responsibilities. Micro credit institutions have also been highly
successful in many countries in providing access to financial services
to microenterprises. This will contribute towards greater reliance on
the formal financial infrastructure and less on the informal
structures.
Higher level of consumer education and financial literacy must be
complemented with effective disclosure regime, fair and transparent
market practices, simplification of financial products and enhanced
communications in the marketplace to minimise information asymmetry.
While efforts may be taken to enhance transparency and disclosure by
service providers, and while programmes for enhanced literacy can
produce positive results, consumer protection is still needed. Given
the asymmetry of information, consumers often do not have enough
information to be completely protected. Building the confidence of
consumers also requires that there be adequate avenues for consumers
to seek redress to enable consumers to resolve conflicts through an
equitable process. Also important are the requirements for complaints
to be handled promptly by financial institutions.
Ladies and Gentlemen,
The Malaysian Experience
Let me briefly take a moment to share with you the experience of
Malaysia in developing an enabling environment to promote financial
literacy.
For several decades, Malaysia has made significant economic progress.
The economy grew by an average of 7% per year, while the per capita
income has increased from USD300 in 1970 to USD4,236 in 2004. From a
commodity-based economy, Malaysia now has a highly diversified
economy, with significant contribution from the manufacturing and
services sectors. Women account for about half of Malaysian
population, and have played an important role in this economic
transformation process. Women account for about 45% of the labour
force, with increasing representation at the professional, managerial
and technical levels. Such progress is achieved following increased
educational opportunities that have been made available to women.
Female primary and secondary students account for half of total
enrolment, while at public universities, female students account for
55% of total enrolment. While women continue to play a major role in
household financial planning, a new generation of women who are
financially independent and sophisticated is emerging.
The financial sector in Malaysia has also experienced significant
progress, with greater diversity of players, products as well as
delivery channels with extensive distribution nationwide. The
widespread distribution of financial institutions has been a conscious
and deliberate policy to ensure the widest reach of financial services
to both the urban and rural areas. With the improved access of
consumers and businesses to financial products and services, consumer
education on financial matters is an important priority for the
Central Bank.
Consistent with the belief of the importance of instilling financial
awareness at an early age, Bank Negara Malaysia introduced a pocket
money book to inculcate smart financial management habits among
students in 1996. The programme also included Household Account Books
to assist families in the management of household income, savings and
investments. This was distributed to cover a wider group, including
women, teachers and workers.
Following this, in 1997 together with the Education Ministry, the
Central Bank embarked on a School Adoption Programme. Through this
programme, more than 7000 schools have been adopted by banking
institutions to play a leading role in educating school children on
basic financial knowledge. In October this year, an online interactive
version of the Pocket Money Book to be used in the School Adoption
Programme was launched.
The Central Bank of Malaysia has also laid out a blueprint known as
the Financial Sector Master Plan that charts the development of the
Malaysian financial system over a ten year period commencing in 2001.
A key component of that plan is the 10-year Consumer Education
Programme for the banking and insurance sectors. This programme is
known as BankingInfo and InsuranceInfo, and was launched in 2003. To
reach a wide spectrum of the population, various channels are being
employed to disseminate information, including through media, road
shows, information brochures and a dedicated web site. There is also a
dedicated outreach programme aimed at specific target groups, which
includes women in rural areas, low income earners and disadvantaged
women such as single mothers. To date, the BankingInfo website has
received an overwhelming response - about 14 million hits and more
than 2.5 million booklets were taken up by the public. In the
insurance sector, over 1.4 million hits have been received on the
InsuranceInfo website, and more than 1.3 million insurance
info-booklets have been disseminated by the insurers to the public.
Ladies and Gentlemen,
Similar to many other Asian economies, microenterprises in Malaysia
are a substantial contributor to employment. Women are extensively
involved in microenterprises, often operated as family run businesses.
To support the growth of microenterprises, dedicated agencies and
funding mechanisms have been established. In order to equip the
microenterprises with proper knowledge, education materials were
developed on the fundamentals of starting a business, specifically
addressing issues of getting access to appropriate financing within
the constraints faced by microenterprises. Dedicated agencies,
including specialist development financial institutions, were
identified to provide training and advisory services to complement
these initiatives.
In addition to the consumer education programmes, the Central Bank has
put in place a consumer protection framework. In collaboration with
the financial industry the Central Bank has established a Financial
Mediation Bureau. The Financial Mediation Bureau aims to serve as a
one-stop center for the resolution of retail consumer complaints
against financial institutions regulated by the Central Bank. The
Central Bank is also establishing a one-stop service centre in the
Bank that will function as a Public Information Centre for the
promotion of financial literacy among the Malaysian public. The
service centre will provide advisory services on financial matters to
small and medium enterprises.
Ladies and Gentlemen,
Concluding Remarks
Financial literacy among women is all about having sufficient
awareness of financial matters to enable women to protect and prosper
for themselves and their families in a world that is becoming
increasingly more complex and uncertain. To be an effective
participant in this modern economy, we cannot take financial literacy
for granted. It is a knowledge and skill that must be deliberately
pursued. From a national and institutional perspective, promoting
financial literacy must be an integral part of the overall agenda for
financial and economic reform and development.
Let me conclude with the words of Jawaharlal Nehru, "We talk of
revolutions, political and economic. And yet the greatest revolution
in a country is the one that affects the status and living conditions
of its women. It is in so far as our revolution has affected our
women that it is basic."
Thank you.
Copyright Bank Negara Malaysia, 2004. All rights reserved.
at the Citigroup-INSEAD Women's Financial Education Summit 2004
Speaker: Governor Tan Sri Dato' Sri Dr Zeti Akhtar Aziz
Venue: Hong Kong
Date: 02 November 2004
Language: English
Introduction
Asia represents the fastest growing region in the global economy. Of
significance, is that more than half the population in Asia are women.
The participation of women in the economy would therefore not only
enhance their own economic well being but would also contribute
towards raising further the economic potential of Asia. Women are
already engaged in both the informal and formal sectors and are
increasingly emerging as a more important force in the economy. The
effective participation, however, needs to be an informed
participation. Financial literacy among women becomes an important
part of this process, regardless of the income constituency to which
they belong. There needs to be a better understanding of their
financial rights and responsibilities, and their opportunities for
income generation and the associated risks and costs involved. This
is particularly important for Asia, where rapid economic and financial
transformation is occurring. Financial literacy among women is thus a
vital part of this process, not only to promote greater engagement of
women in the current economic environment, but also to prepare them
for the future.
It is my great honour and pleasure to be here today to speak on the
importance of financial literacy among women in Asia. My remarks
today will first discuss some of the major structural and cultural
transformations in Asia that are changing and impacting the economic
environment faced by women in Asia, and their rapidly changing role in
the economy. I will also touch on aspects of the challenges faced by
women in Asia in their endeavour for greater economic engagement.
This will be followed by a discussion on the important enablers for
enhanced financial literacy and to share with you Malaysia's
experience in driving a more financially literate society in
particular, that enhances the inclusion of women in the economic
mainstream.
Ladies and Gentlemen,
Asia is being transformed. For more than two decades now we have seen
unprecedented structural and cultural changes in Asia that have
resulted in the transformation of the environment faced by women.
Asia has emerged as the fastest growing region in the world with GDP
in Asia now accounting for 23% of the world economy, compared to 17%
in 1980. Per capita income during this period has more than
quadrupled. If these trends continue, by the year 2020 Asia will
account for about 27% of the world economy while the income per capita
would have further tripled. These dynamic changes have made financial
literacy among women even more vital.
Indeed, against these favourable trends, there has been a growing
participation of women in the growth and development process in Asia.
In particular, there has been a strong migration from the informal to
the formal sector, following the modernisation and industrialisation
process. The increase in the relative significance of the financial
sector in most Asian economies can be seen in terms of the momentum in
the financialisation of savings and the increase in the volume of
financial transactions being conducted through the formal financial
sector. These trends are being reinforced by the shift of activities
that is taking place from the traditional sectors to the industrial
and services sectors. On average, the industrial and services sector
now accounts for 74% of the economy in Asia, compared to 60% in 1980.
In contrast, agriculture now accounts for 12%, compared to 26% in
1980. Involved in this transformation, women have demonstrated a high
degree of mobility, participating in all segments of economic
activity. Most discernable is the increasing participation of women in
the services sector. Here in Hong Kong, the percentage of women in
the services sector relative to the total population increased from
43% in 1980 to 87% in 1999. Similarly in Indonesia, the rise was from
32% to 42%, and in Malaysia, it was from 33% to 57% and in Thailand,
from 18% to 34%.
In Asia, the demographic structure also reinforces the economic
potential of Asia. The population in Asia continues to grow at a
relatively high and stable rate to account for more than half the
world's population. Of significance is the relatively young
demographic structure in Asia. More than 50% of women fall in the age
group 15 to 49 years, similar to that for men. This demographic
structure thus not only contributes to enhance the potential of the
economy but combined with rising incomes and improved standards of
living, has resulted in increases in consumption spending. This
resultant increase in purchasing power has strengthened domestic
demand, making it an important driver of growth in the Asian
economies. Indeed, these trends have strengthened the sustainability
of consumption-based growth. As part of this process, women have
become an important consumer target group with enhanced purchasing
power. In fact, in several of the Asian economies, women are emerging
as a key target market. This greater capacity for earning, spending,
saving and investing requires ability for financial management, and
hence the urgency for greater financial literacy
While financial literacy is important, regardless of economic status,
it becomes even more important for those that are less privileged.
For those that have less to manage, it becomes more vital to manage
the finances even more effectively. It is also those that have been
under-served by the financial system that need to be more aware of the
financial services that they should be able to access, and the
benefits that can be drawn from the various options available. They
too have the same need for maximising the benefits from their limited
resources, and to achieving financial and economic security.
Strengthening their financial position becomes even more important for
this target group. There needs to be awareness of the alternative
assets that can be accumulated not only to generate an income stream
but also towards building wealth. Of equal importance is to draw
those operating in the informal sector into the formal sector, where
their financial requirements, whether households or businesses can be
better served.
A further phenomenon taking place in Asia is the increased regional
economic and financial integration that is taking place. This has
manifested itself in increased intra-regional trade, investment flows
and the increased intra-regional presence of corporations and
financial institutions. A more recent phenomenon is the increased
mobility of labour in the region. Of significance is the number of
women who have ventured beyond their own borders in search of new
employment opportunities. While data on this is not available, the
statistics on remittances of income show this is a growing trend.
Overseas employment is particularly evident in the manufacturing and
services sectors. Financial literacy under these circumstances
becomes even more vital. In venturing to new areas where different
systems, languages and cultures prevail, it becomes important to have
knowledge of the basic financial matters so as to maximise the
benefits the new employment is expected to yield.
As the formal economies of Asia prosper and grow, there is a greater
need to integrate the informal sectors of the economy with the formal
sector. There are millions of women in Asia involved in a wide range
of economic activities from the home, making handicraft, assembling
parts for international brand names and working in the fields. They
work for a small income, and generally in difficult circumstances.
Deliberate actions to integrate the informal economy into the formal
economy will give this segment of society increased opportunities. In
many countries, the success of various national and international
socio-economic reform programs have resulted in women becoming an
increasing part of the formal economy. Through the concerted efforts
of women's rights movements, economic policy intervention and gradual
shifts in cultural norms, women today have more opportunities for
education, careers and political representation. However, in many
instances the increase in participation in the formal economy has not
come with a commensurate level of sophistication in financial
literacy. As a result, women continue to face special challenges in
their endeavour to be active participants in the economic system.
Challenges women in Asia face in financial literacy
Let me now turn to discuss some of the challenges faced by women in
Asia in their endeavour to become more financially literate and
financially independent.
1) Firstly, with the socio-economic environment in Asia
changing rapidly, there is greater uncertainty and volatility which
represents a challenge even for financial experts. The financial
system has also become more complex, with new risks emerging. This
increased sophistication thus makes it increasingly difficult for
those who are less financially literate to make sound decisions.
2) Secondly, the advances in technology has led to a
proliferation of financial products and services. There needs to be a
greater understanding of the basic concepts and practices of banking,
insurance and equity so as to know how to make choices from the wide
range of financial products available, and to assess the respective
risks, costs and returns. Also important is the basic principles of
debt management, wealth management and personal budgeting to be able
to understand the importance of long-term savings in funding future
requirements.
Financial literacy involves being able to identify and understand the
opportunities for income generation, access to funding, and learning
how to make the most of the range of financial products available. It
also involves learning how to manage financial risks in an environment
where the financial infrastructure may be under developed. This may
relate to the laws and procedures in the country. Also important is
the need to be able to recognize illegal schemes and other
exploitative practices such as predatory lending.
3) Thirdly, while women in Asia are being less stereotyped and
given greater opportunities for entering into the economic mainstream,
nonetheless the working conditions for women in many countries have
tended to be less favourable. The exploitation of labour in the
informal sector in some instances are particularly bad, not only for
women, but also for children and minority groups. Women who are
disadvantaged in this manner have found it difficult to escape from
the trap of indebtedness.
Frequently, the disadvantaged and those who are not able to access the
formal financial system have resorted to the informal financial
systems. Recourse to these financial sources have also been due to
the lack of awareness. These may be in the form of deposit schemes
that entail high risk, access to financing from sources that are
highly costly, and almost inevitably against high collateral. Very
often, the practices are unfair and deceptive. Examples in predatory
lending are found to be unscrupulous and highly disadvantageous to the
borrower.
4) Fourthly, in some Asian societies, traditions continue to
create cultural pressures that restrict a woman's choices and
liberties. Though there is increased freedom for women to pursue
education and careers, in some societies, cultural pressures still
make it more difficult for a woman to get the exposure on financial
matters. In addition, the increased incidence of divorces and single
parenthood mean that more women are left to fend for themselves and
their children. In certain Asian societies, single women may face
unusual difficulties in arranging their finances. In some cases, a
woman may even have difficulty claiming her legal rights in a
contract, even though the law does not dispute such a right. Deeply
entrenched human behaviour is not able to change as rapidly as the
financial system is evolving.
5) Fifthly, statistics on life expectancy confirm that women
tend to live longer. In segments of society where women earn less than
men, combined with the fact that they may live longer, it is crucial
to have financial acumen in order to increase the financial
independence of women. This trend also magnifies the need to plan for
retirement especially in an era of rising medical costs.
Ladies and Gentlemen,
Enabling Environment for Financial Literacy
The promotion of greater awareness and understanding in financial
issues in a dynamic and constantly changing environment has to be a
continuous process. The effort needs to focus not only on providing
education programmes but also on putting in place the supporting
infrastructure to enhance the access to financial services, to ensure
an environment of financial transparency and disclosure as well as
adequate consumer protection. Enhanced financial literacy is about
bringing people into the financial mainstream so that they are able to
make well informed decisions regarding their earnings, spending,
savings and investments. The effort thus has to encompass a
comprehensive set of strategies including the education process
reinforced by the supporting infrastructure.
The goal of any financial education programme is to increase awareness
of the value of effective financial management, to show how it can
contribute to financial security and improvement in the economic
well-being. The most effective of programmes have been those that are
targeted to specific groups. Fundamental education for greater
financial literacy that will have most sustainable impact are those
through the school system. Such educational programmes would provide
the education to women from an early age. Essentially, it would not
result in the marginalisation of anyone target group, in particular
women. Such programmes would therefore best serve its purpose as part
of the core curriculum. Indeed, the national education system can play
a pivotal role in financial literacy within a country.
The responsibility of promoting economic and financial literacy needs
to be a collaborative effort amongst the authorities, the financial
service providers and the community to connect to the different target
groups including all social groups. These would include the lower
income groups, workers and businesses. Important are programmes
directed to families where women have an important role and to engage
those we have not been able to participate fully to benefit from the
favourable economic environment prevailing in the region.
Among the successful financial education programmes are those with
specific objectives that are tailored to meet particular needs. This
includes programmes to promote savings for specific objectives; for
education; or for retirement. The education programmes can also be
linked to other objectives such as good health, house ownership and so
on. Financial products can be tailored for such purposes to not only
to promote interest but to also meet these objectives.
All distribution channels need to be relied on to maximise the
effectiveness of financial education programmes. Formal training
programmes can be reinforced by web based content via the Internet.
The World Wide Web offers dramatic economies of scale in terms of
distribution of content at low cost. Connectivity to the Internet can
serve to bring information from all over the world to the local
education system. Iterative programmes can be useful to encourage
participation. Web based programmes while requiring computer literacy,
has a wider outreach and allows for flexibility of time that is of
particular importance to women.
A further means by which financial advice is provided is through
financial advisors. Financial advisors are able to address the issues
for the more sophisticated investors. Similarly, infrastructure for
advisory services for small businesses is key. This can in particular
be provided by financial institutions. Systems need to be in place
where consumers and businesses are explained their rights and
responsibilities. Micro credit institutions have also been highly
successful in many countries in providing access to financial services
to microenterprises. This will contribute towards greater reliance on
the formal financial infrastructure and less on the informal
structures.
Higher level of consumer education and financial literacy must be
complemented with effective disclosure regime, fair and transparent
market practices, simplification of financial products and enhanced
communications in the marketplace to minimise information asymmetry.
While efforts may be taken to enhance transparency and disclosure by
service providers, and while programmes for enhanced literacy can
produce positive results, consumer protection is still needed. Given
the asymmetry of information, consumers often do not have enough
information to be completely protected. Building the confidence of
consumers also requires that there be adequate avenues for consumers
to seek redress to enable consumers to resolve conflicts through an
equitable process. Also important are the requirements for complaints
to be handled promptly by financial institutions.
Ladies and Gentlemen,
The Malaysian Experience
Let me briefly take a moment to share with you the experience of
Malaysia in developing an enabling environment to promote financial
literacy.
For several decades, Malaysia has made significant economic progress.
The economy grew by an average of 7% per year, while the per capita
income has increased from USD300 in 1970 to USD4,236 in 2004. From a
commodity-based economy, Malaysia now has a highly diversified
economy, with significant contribution from the manufacturing and
services sectors. Women account for about half of Malaysian
population, and have played an important role in this economic
transformation process. Women account for about 45% of the labour
force, with increasing representation at the professional, managerial
and technical levels. Such progress is achieved following increased
educational opportunities that have been made available to women.
Female primary and secondary students account for half of total
enrolment, while at public universities, female students account for
55% of total enrolment. While women continue to play a major role in
household financial planning, a new generation of women who are
financially independent and sophisticated is emerging.
The financial sector in Malaysia has also experienced significant
progress, with greater diversity of players, products as well as
delivery channels with extensive distribution nationwide. The
widespread distribution of financial institutions has been a conscious
and deliberate policy to ensure the widest reach of financial services
to both the urban and rural areas. With the improved access of
consumers and businesses to financial products and services, consumer
education on financial matters is an important priority for the
Central Bank.
Consistent with the belief of the importance of instilling financial
awareness at an early age, Bank Negara Malaysia introduced a pocket
money book to inculcate smart financial management habits among
students in 1996. The programme also included Household Account Books
to assist families in the management of household income, savings and
investments. This was distributed to cover a wider group, including
women, teachers and workers.
Following this, in 1997 together with the Education Ministry, the
Central Bank embarked on a School Adoption Programme. Through this
programme, more than 7000 schools have been adopted by banking
institutions to play a leading role in educating school children on
basic financial knowledge. In October this year, an online interactive
version of the Pocket Money Book to be used in the School Adoption
Programme was launched.
The Central Bank of Malaysia has also laid out a blueprint known as
the Financial Sector Master Plan that charts the development of the
Malaysian financial system over a ten year period commencing in 2001.
A key component of that plan is the 10-year Consumer Education
Programme for the banking and insurance sectors. This programme is
known as BankingInfo and InsuranceInfo, and was launched in 2003. To
reach a wide spectrum of the population, various channels are being
employed to disseminate information, including through media, road
shows, information brochures and a dedicated web site. There is also a
dedicated outreach programme aimed at specific target groups, which
includes women in rural areas, low income earners and disadvantaged
women such as single mothers. To date, the BankingInfo website has
received an overwhelming response - about 14 million hits and more
than 2.5 million booklets were taken up by the public. In the
insurance sector, over 1.4 million hits have been received on the
InsuranceInfo website, and more than 1.3 million insurance
info-booklets have been disseminated by the insurers to the public.
Ladies and Gentlemen,
Similar to many other Asian economies, microenterprises in Malaysia
are a substantial contributor to employment. Women are extensively
involved in microenterprises, often operated as family run businesses.
To support the growth of microenterprises, dedicated agencies and
funding mechanisms have been established. In order to equip the
microenterprises with proper knowledge, education materials were
developed on the fundamentals of starting a business, specifically
addressing issues of getting access to appropriate financing within
the constraints faced by microenterprises. Dedicated agencies,
including specialist development financial institutions, were
identified to provide training and advisory services to complement
these initiatives.
In addition to the consumer education programmes, the Central Bank has
put in place a consumer protection framework. In collaboration with
the financial industry the Central Bank has established a Financial
Mediation Bureau. The Financial Mediation Bureau aims to serve as a
one-stop center for the resolution of retail consumer complaints
against financial institutions regulated by the Central Bank. The
Central Bank is also establishing a one-stop service centre in the
Bank that will function as a Public Information Centre for the
promotion of financial literacy among the Malaysian public. The
service centre will provide advisory services on financial matters to
small and medium enterprises.
Ladies and Gentlemen,
Concluding Remarks
Financial literacy among women is all about having sufficient
awareness of financial matters to enable women to protect and prosper
for themselves and their families in a world that is becoming
increasingly more complex and uncertain. To be an effective
participant in this modern economy, we cannot take financial literacy
for granted. It is a knowledge and skill that must be deliberately
pursued. From a national and institutional perspective, promoting
financial literacy must be an integral part of the overall agenda for
financial and economic reform and development.
Let me conclude with the words of Jawaharlal Nehru, "We talk of
revolutions, political and economic. And yet the greatest revolution
in a country is the one that affects the status and living conditions
of its women. It is in so far as our revolution has affected our
women that it is basic."
Thank you.
Copyright Bank Negara Malaysia, 2004. All rights reserved.
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