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24 March 2011

Greener Brunei

Greener Brunei

When the USA sneezes the whole world catches a cold. When the USA makes the rule, the whole world will have no choice but adopt the same. That is a fact of life with the world's biggest economy and consumer. But that is not a bad thing if the USA leads the world for the betterment of this small planet we call earth. With the oil price hovering in the $100 mark, it now makes more sense for the auto makers to produce a more fuel efficient cars. In the USA, a new era of more miles per litre and cleaner vehicles with low CO2 emission is now an in thing. Regulations have been introduced to encourage the production of a more fuel effecient and environmentally friendly vehicles. Toyata leads the way and we are now seeing new models coming out. Several countries have now followed suit and have started offering tax incentives, which vary from tax exemptions for road taxes to lower or even no taxes beyond value added taxes (VAT) on new cars, for vehicles with lower carbon dioxide (CO2) emissions in order to support the sale of environmentally friendly, low emission vehicles that use less fuel.

Brunei too has recently announced some changes in the import tax of vehicles by imposing a higher tax on the bigger engines. Obviously we need to avoid wastage and conserve our domestic fuel consumption. Unfortunately greener vehicles or hybrids are still more expensive than the currently available cars. Some hybrid cars use high-tech batteries that are still very expensive when you need to replace them.

So, what kind of incentives should be given in order to support the purchase of such vehicles in Brunei? Before answering this question, it is useful to analyze the tax system in Western European countries, where a variety of incentives aimed to increase the number of greener cars have already been in place.

Tax incentives: the Netherlands

The Netherlands is a good example of a tax system adapted to greener vehicles. Holland does not charge any tax except the VAT, called BTW in Dutch, on new cars that have a low CO2 emission. For gasoline-powered cars, the CO2 emission is a maximum of 110 grams per kilometer, while diesel-powered cars should have a CO2 emission of below 95 grams per kilometer. In this way, the price of a new car in the Netherlands is reduced by the special consumption tax, called the BPM in the Netherlands, which is approximately 20 percent. This state support is also valid for hybrid and electric cars. Moreover, as in many European countries, the vehicle owner also has to pay a road tax for using public roads.

The country's road tax system depends on the weight of the car and the type of fuel it uses. For instance, the annual road tax for a diesel-driven sport utility vehicle (SUV) of 2,070 kilograms is 2,296 euros whereas the tax is just 1,284 euros when the same SUV has a gasoline engine. The tax for a standard family car weighing 1,160 kilograms is 1,108 euros annually for a diesel car and 528 euros for the gasoline version. They have adopted this system because diesel engines have much higher NOx, a generic term for mono-nitrogen oxides, emissions than gasoline engines. In other words, the Dutch government believes that diesel engines pollute the environment more than gasoline-powered engines. As in the case of BPM exemption, green cars have also exempt from the country's road tax since Jan 1, 2010. In this way, the state wants to reduce CO2 emissions by supporting the purchase of green vehicles.

Besides the state, the private sector offers various promotions for green vehicles. For instance, the country has "green insurance" for low emission cars. The annual premium for full-coverage insurance is lower for green cars compared to those with higher CO2 emissions.

The sales of environmentally friendly cars reached 320,000 units in the first six months of 2010, according to data from various car associations in the Netherlands. Considering that the total vehicle sales in the country neared 483,000 in 2010, most of the new cars had low or zero CO2 emissions. It seems that the current tax system in the Netherlands has stimulated the sales of the "muesli cars," as they are called there.

Tax incentives: the UK

The UK has also adopted a road-tax system for CO2 emission. Their Vehicle Excise Duty (VED) is based on 13 CO2 bands (A to M). VED band A applies to all cars with CO2 emissions of up to 100 grams per kilometer, while bands B to L apply to CO2 emissions of 100 to 255 grams per kilometer, with each band covering a range of 10-30 grams per kilometer. The highest band, M, applies to cars with emissions of over 255 grams per kilometer. As of April 2010, a new "first year" rate a higher annual road-tax rate applies to new cars during the first year of ownership in the UK. Green cars with CO2 emissions of 130 grams per kilometer or less -VED bands A to D are exempt from road tax in the first year. Band A cars with CO2 emission up to 100 grams per kilometer do not have to pay road tax at all.

Moreover, the showroom tax, a first-year excise duty on new vehicles, is designed to encourage people to choose lower-emission models and penalize those opting for higher levels of CO2. For instance, a consumer who would like to buy a SUV with a CO2 emission of over 255 grams per kilometer band needs to pay a showroom tax of 950 pounds, while cars with a CO2 emission up to 130 grams per kilometer bands A to D are exempt.

There are also green car insurance companies in the UK, offering plans that claim to be environmentally friendly. The providers of this tailor-made insurance offer plans for "carbon offsetting," which addresses how much CO2 a vehicle will emit over the course of one year. It takes into account factors such as fuel type, annual mileage and engine size. At the end, the insurance company prepares a premium based on the idea that "the more your vehicle pollutes, the more you need to pay."

Low emission vehicles like hybrid or electric cars still occupy a very small market in Brunei. But there is slowly growing awareness for environmentally friendly cars. HSBC Brunei for example provides their senior management with Toyota Prius as their company cars as part of their global effort to reduce their carbon footprint. More companies should adopt this commendable initiative.

But in order to encourage more companies to adopt this we must have a system in place that provides incentives for buying these cars. Without such incentives their sales will remain low in Brunei. For example, unleaded and leaded petrol are still being sold at the same price. We know lead has a harmful effect to our environment as well as to our health.

Banks or hire purchase companies should be encouraged to give favorable interest rates on car loans for greener cars. One possible way is to make "green profits" as tax deductable, which means revenues derived from greener initiatives should attract lower annual corporate tax. Insurance companies could also be involved by offering cheaper insurance premiums for greener vehicles.

To ensure our energy reserve last longer and can be shared with our future children or the next generation to come, we need to be more efficient in using our oil resources. Our wastage habits should also go. Car pooling should be encouraged during rush hours. Congestions charges should be imposed like that in the city of London or Singapore in the CBD areas. It is also crucial to drastically reduce CO2 emissions in order to keep our environment clean. The car is seen as one of the major polluters, so in reducing the CO2 emissions of vehicles, it is still possible to prevent environmental pollution while driving. It is our duty to ensure that Brunei will remain forever green and beautiful. Afterall we do not own this country but we borrow her from our children.

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14 March 2011

A short lesson on history: the runaway Limbang, whose fault was it?

It was Winston Churchill who said that those that fail to learn from history, are doomed to repeat it. Brunei did also have a very interesting history that we must learn from it or we will be doomed to repeat it.

Okay, let me first ask this question in the opposite. How many Bruneians have not heard that it was Rajah Brooke that took away Limbang from Brunei? Every Brunei historian will probably tell you that Rajah Brooke forcefully annexed Limbang in 1890 leaving Brunei of what it is today, a small country divided into two parts with Limbang in the middle, snatched away by the self proclaimed white Raja. But how many Bruneians have also heard that it was because of the sheer greed and oppresive treatment done by some of the Pengirans (noblemen)and his honcos on the Limbang people that made them to rebel and switch allegiance to Rajah Brooke? Setting aside nationalist fervour and the sense of loss that our parents or grand parents have actually told and retold about Limbang, we need to understand all sides of history so we can learn something out of it.

I have always been fascinated on the history of Brunei especially on how Sarawak became part of Rajah Brooke at the expense of Brunei with Limbang as Rajah Brooke's final and most valuable acquisition. I feel I have close affinity with the place. My real grandmother on my dad's side passed away in Trusan which was to become her final resting place. My ancestors were said to own kuripan title and I still have families from Sarawak especially in Trusan, Limbang and Lawas. I can still remember the time I visited my grandmother's graveyard with my dad. It was many many years ago and surpirinsgly in those days to get to Trusan we didnt carry any travel documents at all. National borders were only drawn on maps. The people there were of course bruneians. I still remember when we visited one of our relatives there whom they referred themselves as orang barunai who shared exactly our way of life. My dad used to tell me that our ancestors actually could be traced back as amongst the pengirans who settled in Trusan and could actually lay claim on some of the lands there. But setting aside the sense of loss and patrotism, I often wonder if Rajah Brooke was squarely to be blamed for the loss of Limbang, Trusan and Lawas or if the pengirans in those days, my very own ancestors had some faults in the whole scheme of things.


Unfortunately we cannot rewrite history. One cannot dispute a historical record written during the period in question unless we can come up with another version that was written during that same period. One detailed account of this event was made by Sir William Hood Treacher who was the first Governor of North Borneo (Sabah). He was no historian but an English public servant who in 1891, published a book entitled "Sketches of Brunai, Sarawak, Labuan and North Borneo". It was one of the most vivid accounts of what actually happened during those tumultuous period in particular the Limbang Rebellion. Fortunately, we can also cross check with a newspaper article in the Straits Times Weekly dated 8 November 1884 on the said event: The Singapore National Library has digitised and made public the article whose link I provide below: http://newspapers.nl.sg/Digitised/Article/stweekly18841108.2.38.aspx


Below is the entire Chapter V from Sir William's book to provide you the historical account of one man who actually lived during that period in question. You may draw your own conclusion whether or not Sir William was being unbiased on his account of what happened or simply as Winston Churchill had once put it, "history is often written in the words of the victors".



Chapter V:
I will now take a glance at the incident of the rebellion of the inhabitants of the Limbang, the important river near Brunai to which allusion has already been made, as from this one sample he will be able to judge of the ordinary state of affairs in districts near the Capital, since the establishment of Labuan as a Crown Colony and the conclusion of the treaty and the appointment of a British Consul-General in Brunai, and will also be able to attempt to imagine the oppression prevalent before those events took place. The river, being a fertile and well populated one and near Brunai, had been from old times the common purse of the numerous nobles who, either by inheritance, or in virtue of their official positions, as I have explained, owned as their followers the inhabitants of the various villages situated on its banks, and many were the devices employed to extort the uttermost farthing from the unfortunate people, who were quite incapable of offering any resistance because the warlike Kyan tribe was ever ready at hand to sweep down upon them at the behest of their Brunai oppressors. The system of dagang sera (forced trade) I have already explained. Some of the other devices I will now enumerate. Chukei basoh batis, or the tax of washing feet, a contribution, varying in amount at the sweet will of the imposer, levied when the lord of the village, or his chief agent, did it the honour of a visit. Chukei bongkar-sauh, or tax on weighing anchor, similarly levied when the lord took his departure and perhaps therefore, paid with more willingness. Chukei tolongan, or tax of assistance, levied when the lord had need of funds for some special purpose or on a special occasion such as a wedding—and these are numerous amongst polygamists—a birth, the building of a house or of a vessel. Chop bibas, literally a free seal; this was a permission granted by the Sultan to some noble and needy favourite to levy a contribution for his own use anywhere he thought he could most easily enforce it. The method of inventing imaginary crimes and delinquencies and punishing them with heavy fines has been already mentioned. Then there are import and export duties as to which no reasonable complaint can be made, but a real grievance and hindrance to legitimate trade was the effort which the Malays, supported by their rulers, made to prevent the interior tribes trading direct with the Chinese and other foreign traders—acting themselves as middlemen, so that but a very small share of profit fell to the aborigines. The lords, too, had the right of appointing as many orang kayas, or headmen, from among the natives as they chose, a present being expected on their elevation to that position and another on their death. In many rivers there was also an annual poll-tax, but this does not appear to have been collected in the Limbang. Sir Spencer St. John, writing in 1856, gives, in his "Life in the Forests of the Far East," several instances of the grievous oppression practiced on the Limbang people. Amongst others he mentions how a native, in a fit of desperation, had killed an extortionate tax-gatherer. Instead of having the offender arrested and punished, the Sultan ordered his village to be attacked, when fifty persons were killed and an equal number of women and children were made prisoners and kept as slaves by His Highness. The immediate cause of the rebellion to which I am now referring was the extraordinary extortion practised by one of the principal Ministers of State. The revenues of his office were principally derived from the Limbang River and, as the Sultan was very old, he determined to make the best possible use of the short time remaining to him to extract all he could from his wretched feudatories. To aid him in his design, he obtained, with the assistance of the British North Borneo Company, a steam launch, and the Limbang people subsequently pointed out to me this launch and complained bitterly that it was with the money forced out of them that this means of oppressing them had been purchased. He then employed the most unscrupulous agents he could discover, imposed outrageous fines for trifling offences, and would even interfere if he heard of any private disputes among the villagers, adjudicate unasked in their cases, taking care always to inflict a heavy fine which went, not to the party aggrieved, but into his own pocket. If the fines could not be paid, and this was often the case, owing to their being purposely fixed at such a high rate, the delinquent's sago plantations—the principal wealth of the
people in the Limbang River—would be confiscated and became the private property of the Minister, or of some of the members of his household. The patience of the people was at length exhausted, and they remembered that the Brunai nobles could no longer call in the Kayans to enforce their exactions, that tribe having become subjects to Raja Brooke. About the month of August, 1884, two of the Minister's messengers, or tax collectors, who were engaged in the usual process of squeezing the people, were fired on and killed by the Bisayas, the principal pagan tribe in the river. The Tumonggong determined to punish this outrage in person and probably thought his august presence on the spot in a steam-launch, would quickly bring the natives to their knees and afford him a grand opportunity of replenishing his treasury.

He accordingly ascended the river with a considerable force in September, and great must have been his surprise when he found that his messenger, sent in advance to call the people to meet him, was fired on and killed. He could scarcely have believed the evidence of his own ears, however, when shortly afterwards his royal launch and little fleet were fired on from the river banks. For two days was this firing kept up, the Brunais having great difficulty in returning it, owing to the river being low and the banks steep and lined with large trees, behind which the natives took shelter, and, a few casualties having occurred on board and one of the Royal guns having burst, which was known as the Amiral Muminin, the Tumonggong deemed it expedient to retire and returned ignominiously to Brunai. The rebels, emboldened by the impunity they had so far enjoyed, were soon found to be hovering round the outskirts of the capital, and every now and then an outlying house would be attacked during the night and the headless corpses of its occupants be found on the morrow. There being no forts and no organized force to resist attack, the houses, moreover, being nearly all constructed of highly inflammable palm leaf thatch and matting, a universal panic prevailed amongst all classes, when the Limbang people announced their intention of firing the town. Considerable distress too prevailed, as the spirit of rebellion had spread to all the districts near the capital, and the Brunai people who had settled in them were compelled to flee for their lives, leaving their property in the hands of the insurgents, while the people of the city were unable to follow their usual avocations—trading, planting, sago washing and so forth, the Brunai River, as has been pointed out, producing nothing itself. British trade being thus affected by the continuance of such a state of affairs, and the British subjects in the city being in daily fear from the apprehended attack by the rebels, the English Consul-General did what he could to try and arrange matters. A certain Datu Klassie, one of the most influential of the Bisaya Chiefs, came into Brunai without any followers, but bringing with him, as a proof of the friendliness of his mission, his wife. Instead of utilizing the services of this Chief in opening communication with the natives, the Tumonggong, maddened by his ignominious defeat, seized both Datu Klassie and his wife and placed them in the public stocks, heavily ironed.

I was Acting Consul-General at the time, and my assistance in arranging matters had been requested by the Brunai Government, while the Bisayas also had expressed their warm desire to meet and consult with me if I would trust myself amongst them, and I at once arranged so to do; but, being well aware that my mission would be perfectly futile unless I was the bearer of terms from the Sultan and unless Datu Klassie and his wife were released, I refused to take any steps until these two points were conceded. This was a bitter pill for the Brunai Rajas and especially for the Tumonggong, who, though perfectly aware that he was quite unable, not only to punish the rebels, but even to defend the city against their attacks, yet clung to the vain hope that the British Government might be induced to regard them as pirates and so interfere in accordance with the terms of the treaty, or that the Raja of Sarawak would construe some old agreement made with Sir James Brooke as necessitating his rendering armed assistance.

However, owing to the experience, tact, perseverance and intelligence of Inche Mahomet, the Consular Agent, we gained our point after protracted negotiations, and obtained the seals of the Sultan, the Bandahara, the Di Gadong and the Tumonggong himself to a document, by which it was provided that, on condition of the Limbang people laying down their arms and allowing free intercourse with Brunai, all arbitrary taxation such as that which has been described should be for ever abolished, but that, in lieu therefor, a fixed poll-tax should be paid by all adult males, at the rate of $3 per annum by married men and $2 by bachelors; that on the death of an orang kaya the contribution to be paid to the feudal lord should be fixed at one pikul of brass gun, equal to about $21; that the possession of their sago plantations should be peaceably enjoyed by their owners; that jungle products should be collected without tax, except in the case of gutta percha, on which a royalty of 5% ad valorem should be paid, instead of the 20% then exacted; that the taxes should be collected by the headmen punctually and transmitted to Brunai, and that four Brunai tax-gatherers, who were mentioned by name and whose rapacious and criminal action had been instrumental in provoking the rebellion, should be forbidden ever again to enter the Limbang River; that a free pardon should be granted to the rebels.

Accompanied by Inche Mahomet and with some Bisaya interpreters, I proceeded up the Limbang River, on the 21st October, in a steam-launch, towing the boats of Pangeran Istri Nagara and of the Datu Ahamat, who were deputed to accompany us and represent the Brunai Government. Several hundred of the natives assembled to meet us, and the Government conditions were read out and explained. It was evident that the people found it difficult to place much reliance in the promises of the Rajas, although the document was formally attested by the seals of the Sultan and of his three Ministers, and a duplicate had been prepared for them to keep in their custody for future reference. It was seen, too, that there were a number of Muhammadans in the crowd who appeared adverse to the acceptance of the terms offered, and, doubtless, many of them were acting at the instigation of the Tumonggong's party, who by no means relished so peaceful a solution of the difficulties their chief's action had brought about.

Whilst the conference was still going on and the various clauses of the firman were being debated, news arrived that the Rajas had, in the basest manner, let loose the Trusan Muruts on the district the day we had sailed for the Limbang, and that these wretches had murdered and carried off the heads of four women, two of whom were pregnant, and two young unmarried girls and of two men who were at work in their gardens.

This treacherous action was successful in breaking up the meeting, and was not far from causing the massacre of at any rate the Brunai portion of our party, and the Pangeran and the Datu quickly betook themselves to their boats and scuttled off to Brunai not waiting for the steam-launch.

But we determined not to be beaten by the Rajas' manoeuvres, and so, though a letter reached me from the Sultan warning me of what had occurred and
urging me to return to Brunai, we stuck to our posts, and ultimately were rewarded by the Bisayas returning and the majority of their principal chiefs signing, or rather marking the document embodying their new constitution, as it might be termed, in token of their acquiescence—a result which should be placed to the credit of the indefatigable Inche Mahomet, whose services I am happy to say were specially recognised in a despatch from the Foreign Office. Returning to Brunai, I demanded the release of Datu Klassie, as had been agreed upon, but it was only after I had made use of very plain language to his messengers that the Tumonggong gave orders for his release and that of his wife, whom I had the pleasure of taking up the river and restoring to their friends.

H. M. S. Pegasus calling at Labuan soon afterwards, I seized the opportunity to request Captain Bickford to make a little demonstration in Brunai, which was not often visited by a man-of-war, with the double object of restoring confidence to the British subjects there and the traders generally and of exacting a public apology for the disgraceful conduct of the Government in allowing the Muruts to attack the Limbang people while we were up that river. Captain Bickford at once complied with my request, and, as the Pegasus drew too much water to cross the bar, the boats were manned and armed and towed up to the city by a steam-launch. It was rather a joke against me that the launch which towed up the little flotilla designed to overawe Brunai was sent for the occasion by one of the principal Ministers of the Sultan. It was placed at my disposal by the Pangeran Di Gadong, who was then a bitter enemy of the Tumonggong, and glad to witness his discomfiture. This was on the 3rd November, 1884.

With reference to the heads taken on the occasion mentioned above, I may add that the Muruts were allowed to retain them, and the disgusting sight was to be seen, at one of the watering places in the town, of these savages "cooking" and preparing the heads for keeping in their houses.

As the Brunai Government was weak and powerless, I am of opinion that the agreement with the Limbang people might have been easily worked had the British Government thought it worth while to insist upon its observance. As it was, hostilities did cease, the headmen came down and visited the old Sultan, and trade recommenced. In June, 1885, Sultan Mumim died, at the age, according to Native statements, which are very unreliable on such points, of 114 years, and was succeeded by the Tumonggong, who was proclaimed Sultan on the 5th June of the same year, when I had the honour of being present at the ceremony, which was not of an imposing character. The new Sultan did not forget the mortifying treatment he had received at the hands of the Limbang people, and refused to receive their Chiefs. He retained, too, in his own hands the appointment of Tumonggong, and with it the rights of that office over the Limbang River, and it became the interest of many different parties to prevent the completion of the pacification of that district. The gentleman for whom I had been acting as Consul-General soon afterwards returned to his post. In May, 1887, Sir Frederick Weld, Governor of the Straits Settlements, was despatched to Brunai by Her Majesty's Government, on a special mission, to report on the affairs of the Brunai Sultanate and as to recent cessions of territory made, or in course of negotiation, to the British North Borneo Company and to Sarawak. His report has not been yet made public. There were at one time grave objections to allowing Raja Brooke to extend his territory, as there was no guarantee that some one of his successors might not prefer a life of inglorious ease in England to the task of governing natives in the tropics, and sell his kingdom to the highest bidder—say France or Germany; but if the British Protectorate over Sarawak is formally proclaimed, there would appear to be no reasonable objection to the Brookes establishing their Government in such other districts as the Sultan may see good of his own free will to cede, but it should be the duty of the British Government to see that their ally is fairly treated and that any cessions he may make are entirely voluntary and not brought about by coercion in any form—direct or indirect.

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10 March 2011

Is Robin Hood a thief?

Is Robin Hood a thief?

Would you call Robin Hood a thief? Afterall he stole money from the rich and gave them to the poor so the legend says?

I have said before that the road to hell is often paved with good intentions. People have this habit of justifying their wrong doings for some innocous and at times seemingly acceptable causes. When I was still in the law enforcement and a deputy public prosecutor, I could remember the countless times I came across with accused persons committing white collar crimes who by nature were not wicked but well intentioned and good natured people. I had come across with a man who committed a criminal breach of trust of thousand of dollars because he had to support a huge family. I came across with a lady who committed a corruption offence because she was left to raise her kids by herself after being left by her irresponsible husband. Yes, they were also a large number of accused persons who led an extravagant lifestyle and lived beyond their means but it would be hard to label these people as evil as you might find them in our midst as kind hearted people for most of their times who probably did charity works or helpful public servants or generous people who probably performed benevolent acts for most of their lives. It was only when this temporary lapse of judgement which maybe due to some desperate or dire situations that drove them to make a stupid decision of their lifetime they ended up commiting that single offence in question.

We all know that motive in a crime is irrelevant. The law does not differentiate between a person that steals a loaf of bread to feed his hungry child from someone commiting the same offence simply because he is hungry. A theft is a theft no matter how sympathetic the reason behind the theft may sound. The motive may be a relevant mitigating factor in a subsequent sentencing by the court but to allow it as relevant factor in absolving a person from his crime would simply make a mockery of justice as it is really human nature for people to readily justify their own actions. When judging intentions, people are more likely to interpret good intentions for their own actions than they are for those of others. That is the reason why in white collar crimes, I have never come accross with any person who readily admits that he is a wicked man or one who would readily admit that he was a corrupt person. Everyone would have his or her own excuses. Unfortunately the law is blind of one's own motive and rightly so it needs to be blind.

We must ensure the law remains steadfastly blind and indifferent on one's own motive behind every crime committed because we can be sure there are plenty of Robin Hoods out there with plenty of good causes to justify their wrong doings.


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16 February 2011

AFC qualifying Laos vs Taipei

Live score 1-1 with 1 min remaining
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17 January 2011

Is it time for us to have our own Stock Exchange?

It does bother me to know that Brunei will be the last country in ASEAN without a Stock Exchange. With Laos launching its first floor trading at its newly built LEX on 11.1.11 and Cambodia following suit, I am somewhat taken aback by the thought that a LDC country and a new comer to ASEAN have built their own stock exchange of their own. Of course one of the main objectives of having stock exchange is access to capital as companies floating their shares at the stock exchange can be bought and sold by members of the public. But to a country, having a stock exchange can really contribute to a more sustainable economic growth of a country as well as a more transparent management of corporations, ensuring security and returns for investors. Just look at South Korea as a very good example. Strict corporate governance and accounting practice must be adhered to by companies before they can IPO (Initial public offering)their shares as the public has the right to make informed decisions whether to invest in the companies or not. It can also encourage a saving and investment culture in the population especially in a country where we tend to spend more than we earn.

Some of us may have the idea that having stock exchanges may encourage speculative behavior on the buying and selling of shares which is akin to gambling and of course prohibited in our religion. But is it really gambling? I do not think so. Otherwise countries in the middle east like Saudi Arabia, Bahrain, Kuwait just to name a few would not have one of their own.
To the nay sayers, let me just lay out why investing in shares or stock is not gambling. For a start gambling is always a zero sum game. The gambler has only two choices. Either win or lose his money. Whereas investing in shares, the investor can get the middle and long term returns if he can manage his risks carefully. If you are risk averse like me, instead of buying individual stock or shares from a single company, you can buy unit trust which is basically a basket of shares from many companies so that you can spread your risks better. Just think of it this way. Imagine you have 12 eggs (which is your investment). If you carry all these eggs in a single bag and accidentally drop the bag, the risk of you breaking all the eggs would of course be higher than if you split the eggs say into 4 bags and ask 4 different people to carry them. These unit trusts are managed by professional people who are in the know of the business. Of course there are regulations and laws that govern these people who manage your investment.
Second, to a gambler to win, it is a complete game of chance. He has nothing but wish and pray that he had that chance or stroke of luck. To those who buy shares, we need to study and assess the performance of the companies. We need to assess all the available information, the business climate and the confidence of the market. Many factors can affect the price of shares knowing these can help you make the decision to buy or sell the shares. Just think of it this way, if there is going to be a long hard winter in Europe, you can be sure that there will be higher demand for energy. So companies providing energy such as oil companies will need to sell more oil. Obviously if there is more demand than supply, the price will go up and that means these companies will make more money which also mean that the shares of the companies will become more valuable.
Third, if you gamble, in the long run you lose and the gambling owners will be the clear winners. otherwise Las Vegas or Macau would not have flourished as the gambling haven on earth. On the other hand if you continually buy stock either through unit trusts or individual shares, despite the price fluctuations on your holding, you will eventually accumulate wealth. Yes there will be hiccups, black mondays, financial crises and what have you but if you hang on to your stock, you will still have assets. When you buy shares in a company you are actually a proud owner (or at least one of the owners) of that company. I started learning how to buy shares when I was still a teen kid in the UK. That was the time when Thatcher the Iron lady, my favorite UK PM, pushed for the privatization of a number of their public companies like British Telecom and British Gas. With the little savings I had, I bought a few shares in the British Gas and British Telecom. I kept them, although the dividends payable were very little but as soon as I left UK after 5 years, I sold them and made a handsome profit as the shares increased in value.
Right now the only publicly owned company in Brunei is the IBB Bhd. To start a stock exchange, it is obvious we need to have big companies or Government linked companies that are willing to offer their shares to the public. Alternatively, we can look at the privatization of the key public utilities such as water, roads, electricity, ports and the list can go on. Obviously there are downside to privatization. For one, we will need to pay more for the services rendered as these publicly traded companies will need to make money in order for the shares to be attractive to the investors. But of course the upside is a lot more. Otherwise, countries in the world would not have been scrambling hard to establish their very own stock exchange.

01 January 2011

Happy new year 2011

I guess the first post for the new year is to wish everyone a very happy new year and may this year bring prosperity and joy to everyone.

We greeted the new year by hosting a get together at our residence by inviting our close friends in the diplomatic circle as well as friends here to a mee siam treat. This is now the second new year that we celebrated here in Laos and I am at least very happy that all my kids are here with us as my eldest who is usually the one who is absent, is here for her winter break. She is however leaving us tomorrow as school will begin on tuesday. I am sure going to miss her and it looks like she will not be visiting us this year as she will sit for her final year exams before she enters the university. She has also been harping on me to sponsor her THIMUN trip to Singapore which is some kind of an international students' get together where they play roles as diplomatic representatives of various countries in a mock UN setting discussing real issues of current concern. I have actually said yes to her going as she had wanted to attend the one that was organized in New York last year but for the prohibitive costs, I settled for the one to be organized in Singapore.

Anyway, I have to go to bed early today as we are sending off our daughter to the airport by driving down to Udon Thani Airport on the otherside of the border. She is catching up an early flight from Udon to Bangkok and then to Brunei. We need to wake up very early tomorrow and leave by 530 am. Good night :-)

22 December 2010

Blackberry world

Hello... I'm now posting this on the move with this nifty little gadget that is blackberry. I can't help but join the millions others who are already hooked on bb. If the powerful man from the USA swears by it-he was even quoted 'not even the CIA will take away my bb, dont blame me if yours truly is also hopping on the bandwagon. So when I was transitting at Changi on the way here, I splurged myself on one. there is just something magical about this canadian based technology. And true to its hype, it has not disappointed me. I am able to get all my emails seamlessly integrated into a single inbox, use googletalk and the bb instant messaging, my it is simply magic!
Sent from my BlackBerry® smartphone on Tigo