JPMorgan CEO warns he will fire any employee trading Bitcoin for being “stupid.”


 
Tough stand: Dimon has warned that he will fire JPMorgan traders who traded in bitcoin ‘in a second. For two reasons: It’s against our rules, and they’re stupid. And both are dangerous.’ — AFP

NEW YORK: JPMorgan Chase & Co chief executive officer Jamie Dimon said he will fire any employee trading bitcoin for being “stupid.”

The cryptocurrency “won’t end well,” he told an investor conference in New York on Tuesday, predicting it will eventually blow up. “It’s a fraud” and “worse than tulip bulbs.”

If a JPMorgan trader began trading in bitcoin, he said: “I’d fire them in a second. For two reasons: It’s against our rules, and they’re stupid. And both are dangerous.”

Bitcoin has soared in recent months, spurred by greater acceptance of the blockchain technology that underpins the exchange method and optimism that faster transaction times will encourage broader use of the cryptocurrency.

Prices have climbed more than four-fold this year – a run that has drawn debate over whether that’s a bubble.

Bitcoin initially slipped after Dimon’s remarks. It was down as much as 2.7% before recovering.

Last week, it slumped after reports that China plans to ban trading of virtual currencies on domestic exchanges, dealing another blow to the US$150bil cryptocurrency market.

Tulips are a reference to the mania that swept Holland in the 17th century, with speculators driving up prices of virtually worthless tulip bulbs to exorbitant levels.

That didn’t end well.

In bitcoin’s case, Dimon said he’s sceptical authorities will allow a currency to exist without state oversight, especially if something goes wrong.

“Someone’s going to get killed and then the government’s going to come down,” he said.

“You just saw in China, governments like to control their money supply.”

Dimon differentiated between the bitcoin currency and the underlying blockchain technology, which he said can be useful.

Still, he said banks’ application of blockchain “won’t be overnight.”

The bank chief said he wouldn’t short bitcoin because there’s no telling how high it will go before it collapses.

The best argument he’s heard, he said, is that it can be useful to people in places with no other options – so long as the supply of coins doesn’t surge.

“If you were in Venezuela or Ecuador or North Korea or a bunch of parts like that, or if you were a drug dealer, a murderer, stuff like that, you are better off doing it in bitcoin than US dollars,” he said.

“So there may be a market for that, but it’d be a limited market.”— Bloomberg

 

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Too good to be true? Think twice


 

HAVE you ever grabbed an offer without any hesitation, simply because the price is too cheap to resist?

Many of us have this experience especially during sales or promotional campaigns. We tend to spend more at the end or buy things which we are uncertain of their quality when the deal seems too good to say no.

It may be harmless if the amount involved is insignificant. However, when we apply the same approach to big ticket items, it can cause vast implications.

Recently, I heard a case which reinforces this belief.

A friend shared that a property project which was selling for RM300,000 a few years ago is now stuck. Although the whole project was sold out, the developer has problem delivering the units on time.

The developer is calling all purchasers to renegotiate the liquidated and ascertained damages (LAD), a compensation for late delivery.

One of the homeowners said he is owed RM50,000 of LAD, which means the project is 1½ years late. When we chatted, we found that he purchased the unit solely due to its cheap pricing without doing much research in the first place.

The incident is a real-life example of paying too low for an item which can leave us as losers, especially when it involves huge sum of investment, such as property.

To many, buying a house maybe a once-in-a-lifetime experience, a decision made can make or break the happiness of a family.

A good decision ensures a roof over the head and a great living environment, while an imprudent move may incur long-term financial woes if the house is left uncompleted.

Nowadays, it is common to see people do research when they plan to buy a phone, household item, or other smaller ticket items.

Looking at the amount involved and implication of buying a house, we should apply the same discretion if not more.

It is always important for house buyers to study the background of a developer and project, consult experienced homeowners regarding the good and bad of a project before committing.

I have seen many people buy a house merely based on price consideration.

In fact, there are more to be deliberated when we commit for a roof over our heads. The location, project type, reputation of a developer, the workmanship, the future maintenance of the property etc, are all important factors for a good decision as they would affect the future value of a project.

Beware when a discount or a rebate sounds too good to be true, it may be just too good to be true and never materialised. If the collection or revenue of a housing project is not sufficient to fund the building cost, the developer may not be able to complete the project or deliver the house as per promised terms. At the end of the day, the “price” paid by homeowners would be far more expensive.

In general, the same principle applies elsewhere. It is a known fact that when we pay a premium for a quality product from a reliable producer, we have a peace of mind that the product could last longer and end up saving us money. Some lucky ones will end up gaining much more.

For instance, when we purchase a car, we should consider its resale value as some cars hold up well, while others collapse after a short period. Other determining factors include the specifications of the car, the after sales service, and the availability of spare parts.

Quality products always come with a higher price tag due to the research, effort, materials and services involved.

In addition to buying a house or big ticket items, other incidents that can tantamount to losing huge sums are like money games, get-rich-quick scheme, or the purchase of stolen cars or houses with caveats.

When an offer or a rebate sounds dodgy, the “good deal” can be a scam.

Years of experience tells me that when what is too good to be true, we should think twice. I always remind myself with a quote from John Ruskin (1819-1900) who was an art critic, an artist, an architect and a philosopher. “It’s unwise to pay too much, but it’s worse to pay too little. When you pay too much, you lose a little money – that’s all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do.

“The common law of business balance prohibits paying a little and getting a lot – it can’t be done. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that you will have enough to pay for something better.”

Food for thought by Alan Tong

Datuk Alan Tong has over 50 years of experience in property development. He was the world president of FIABCI International for 2005/2006 and awarded the Property Man of the Year 2010 at FIABCI Malaysia Property Award. He is also the group chairman of Bukit Kiara Properties. For feedback, please email feedback@fiabci-asiapacific.com.

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The rail economics of East Coast Rail Link (ECRL)


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Rail link seen as game changer but cost is a concern.

TOK Bali, a fishing village in Kelantan with its beautiful sandy beaches and pristine blue waters has long been a hidden gem among well-travelled backpackers. But that may soon change. The idyllic town is one that is touted to potentially become a tourist hotspot, as it sits along the alignment of the East Coast Rail Link (ECRL), a multi-billion infrastructure project that promises many economic spin-offs.

After almost a decade in planning, ECRL was launched with great pomp this week.

Touted as a key game-changer for the east coast states of Peninsular Malaysia, the interstate ECRL is expected to help the economy of the four states that it covers by an additional 1.5% per year over the next 50 years.

On a micro level, more employment opportunities, particularly skilled jobs, will be made available to Malaysians. Domestic industry players especially in the construction sector, can now anticipate construction contracts to the tune of RM16bil, at least.

   
Another milstone:Najib checking out a train model at the ground-breaking ceremony this week.He called ECRL ‘another milestore in the country’s land public transport history”.

The ECRL is expected to benefit freight transport because it would link key economic and industrial areas within the East Coast Economic Region such as the Malaysia-China Kuantan Industrial Park, Gambang Halal Park, Kertih Biopolymer Park and Tok Bali Integrated Fisheries Park to both Kuantan Port and Port Klang.

Prime Minister Datuk Seri Najib Tun Razak called it “another milestone in the country’s land public transport history”.

Despite the much highlighted economic benefits from the rail network, the venture is attracting its own share of controversies from the way the contract was awarded to the price of contract.

For one, China’s state-owned China Communications Construction Company (CCCC) has been appointed for the construction of ECRL via a direct negotiation method.

Detractors have labelled ECRL – at a cost of RM80mil per kilometre – as the world’s costliest rail project. Note that, the Gemas-Johor Baru double-tracking stretch costs RM45mil per km.

ECRL, however, will go over hilly terrain and has several tunnels to be built.

There are questions on whether the 688km rail venture, at RM55bil, will be financially feasible.

Sources say the price tag is unlikely to have included land acquisition costs.

They indicate that close to half of the land plots required for the rail link sit on private land and would require land acquisition. At this point, the total land acquisition cost is unknown.

No money in rail

The concerns of the critics are understandable, given the fact that public infrastructure projects, namely rail projects are usually not commercially viable.

A quick check on the finances of Malaysia’s very own Keretapi Tanah Melayu Bhd (KTMB) and a number of major rail operators abroad, affirms the fact that rail projects do not promise easy money.

The loss-making KTMB which was corporatised in 1992, has not been able to financially sustain itself, resulting in the deterioration of its level of service despite attempts to turn around the company.

According to the railway service operator’s latest publicly available audited report for financial year 2013, the group registered a total net loss of RM128.2mil. However, note that, the net loss had narrowed by 46% from RM238.5mil in the previous year.

Had it not been for the government’s subsidy which kept it afloat, KTMB would find it difficult to continue its operations without a further raise of its fare.

In India, where railway is a favoured mode of transportation, the Indian Railways has been incurring losses on passenger operations every year. Earlier this year, the lower chamber of the Indian parliament was told that the state-owned rail operator recorded a loss of Rs359.18bil (RM24.04bil) in the period of 2015 to 2016.

This was slightly higher than its loss of Rs334.91bil (RM22.42bil) in the period of 2014-2015.

On the other hand, China’s state-owned rail operator, China Railway Corp, was reported to have recorded a 58% increase in earnings last year despite huge losses in the first nine months. However, a zoom into its finances reveals that the high profit made was only possible due to a significant annual government subsidy.

Similarly, Singapore’s SMRT Corp which manages the city-state’s rail operations posted a profit of S$7.4mil (RM23.33mil) in its financial year of 2016. This was on the back of a revenue of S$681mil (RM2.15bil), which rose by 4.1% year-on-year.

While the rail operations saw higher ridership in that year, SMRT Corp would have registered a loss of S$9.6mil (RM30.26mil) for its rail business, if not for the net property tax refund of S$17.1mil (RM53.9mil).

Considering the lack of commercial viability in such rail projects, ECRL would ultimately require assistance from the government in ensuring smooth operations, while maintaining an affordable service for its users. This is akin a crucial trade-off, to complement the government’s move to provide an integrated transportation system in Malaysia, which is long overdue.

AmBank Group’s chief economist Anthony Dass tells StarBizWeek that for every ringgit spent on capital projects such as transportation, it generates a return or multiplier effect of around 5% to 20%.

In his estimation, he says the ECRL should create around RM50-55bil in terms of gross domestic product.

“The impact of this project to the economy will be multilevel. Impact on the respective states’ GDP and national GDP will be evident, though the magnitude of the impact on the respective states is poised to vary.

“On a longer term, once the entire project is completed, we expect strong benefits seeping into services related activities. Properties in the major towns is likely to enjoy more especially the port-connected towns, driven by logistics- and trade-related businesses.

“Other areas would benefit from the movement of tourism. As for the smaller towns, they are more likely to enjoy from the spillovers of this connectivity through movement of people commuting to work and new areas of business growth especially in areas like the small and medium businesses,” says Anthony.

High cargo projections

By the year 2040, an estimated 8 million passengers and 53 million tonnes of cargo are expected to use the ECRL service annually as the primary transport between the east coast and west coast.

By 2040, ECRL is projected to support a freight density of 19 million tonnes.

The freight cargo projections of the rail network stands in stark contrast to the total cargo volume running through the entire Malaysian railways today.

As of 2015, the entire Malaysian railways operations handled a sum of 6.21 million tons of cargo, according to a study related to the ECRL.

To note, the revenue from the operation of the venture is projected to be obtained through a transportation ratio of 30% passengers and 70% freight.

If the projections of ECRL are anything to go by, the planners are anticipating a ballistic growth in volume of cargo being moved along the tracks.

Is this realistic?

Socio Economic Research Centre executive director Lee Heng Guie remains concerned on the details of the project financing, albeit the expected trickle-down benefits of ECRL.

“While ECRL has been identified as a high impact public transport project that will connect east coast states with the west coast, especially Greater KL and Klang Valley, the high cost of RM55bil requires further justification. More clarity on the cost structure and terms and conditions of the loan is needed to ease public genuine concerns.

“It must be noted that the high costs, low profits and long gestation periods of transportation projects do not always make them financially viable. The financial viability of the ECRL would depend on the revenue generated to cover operating cash flow, including interest expenses.

“As the loan will have a seven year moratorium, the bunching of loan repayment together with interest payment will be substantial in the remaining 13 years,” he says.

Lowering cost the key

In terms of funding, 85% of the total project value of RM55bil would be to be funded by Exim Bank of China’s through a soft loan at a 3.25% interest.

The balance 15% would be financed through a sukuk programme by local banks.

There is no payment for the first seven years, and the government starts paying after the seventh year over a 13-year period.

At 3.25% interest per annum, the interest servicing bill for the project is huge.

“Hence the main challenge to this project will be to bring down cost as low as possible. The lower the cost, the lesser it would be the burden on the government’s balance sheet,” says an industry player.

Echoing a similar view, Lee noted the ERCL project loan is expected to be treated as “contingent liability” as it will be taken by Malaysia Rail Link Sdn Bhd, a special purpose vehicle owned by the Ministry of Finance.

This is also to ensure that the Federal Government will not breach the self-imposed debt to GDP ratio of 55%.

As at end-March 2017, the Federal Government’s debt stood at RM664.5bil or 50.2% of GDP.

At the end of the day, despite the concerns on the possible cost overrun in the ECRL project, proper management and efficiency in project delivery could lead to cost savings and ultimately lower overall expenditure for ECRL.

History has shown that Malaysian companies can lower the cost, especially on rail projects compared to foreign players.

In the late 1990s, a consortium of India and China state-owned companies were awarded the contract to build a double track electrified railway system from Padang Besar to Johor Baru. The cost was estimated at RM44bil and paid through crude palm oil.

However, an MMC Corp Bhd-Gamuda Bhd joint venture managed to win the job in 2003 with a RM14.3bil proposal. However this project was shelved and subsequently continued after a lull of few years.

ECRL is a seven year project to be built in stages. Many factors can come into play in that period like delay in construction and rise in material costs.

However in the bigger picture, the infrastructure venture should not merely be seen from a commercial-viable lens alone. The trickle-down benefits on the economy and the Malaysian population should also be factored into the calculations.

The lower the cost, the higher the multiplier effect.

Source: The Star by ganeshwaran kanaandgurmeet kaur

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Penang properties: security for homeseekers, location for foreigners, increased value for investors


 

Security ranks high for the homeseekers

GEORGE TOWN: Security is a key feature sought after by property buyers at the StarProperty.my Fair 2017 at Gurney Plaza and Gurney Paragon Mall here.

Eco World Development Group Berhad (EcoWorld) sales executive Andre Lim Han Lin said potential buyers approached the company due to the security features of its projects.

“We stress a lot on security in our projects. Take for example the Eco Meadows gated and guarded mixed development project in Simpang Ampat on the Penang mainland.

“Each housing unit comes with intercom system and alarm system to provide enhanced safety for our customers.

“In cases of emergency, homeowners can contact our well-trained security guards for assistance,” he said at the fair yesterday.

Hunza Properties (Penang) Sdn Bhd head of sales and marketing Karen Thein said the company’s Alila2 project in Tanjung Bungah comes with a top-notch security system to ensure the safety and security of its homebuyers.

“We have layers of security from the guardhouse, to the car park, lobby area and to the home unit.

“The project is equipped with security tags, access card control system and CCTVs,” she added.

She said Alila2 was also equipped with smart home panel that allows owners to view their visitors who are at the lobby.

“Owners can open the door to the lifts at the lobby from their home after confirming the identity of the visitors through the smart panel.

“Aside from that, each unit is equipped with a panic button for owners to alert the security guards during emergencies,” she said.

BDB Land Sdn Bhd sales executive Mohd Zaidi Md Jasmin said potential clients who came to their booths were also concerned about security.

“Security is one of the important factors we stressed in our Darulaman Perdana township in Sungai Petani.

“The project is a guarded community, crafted to meet the needs of those who seek comfort and safety in their homes.

“We have our security guards patrolling our project to ensure safety at all times.

“Besides safety, we are also into building a healthy and environmental-friendly community,” he said.

The StarProperty.my Fair 2017, organised by the Star Media Group, is open from 10am to 10pm daily until Sunday.. Admission is free.

By Christopher Tan The Star

Foreigners eyeing Penang properties

FOREIGNERS were among the early birds who visited the StarProperty.my Fair 2017 in Penang on its first day, looking for properties to invest in.

Couple Wallace Ng and Minnie Yip, both 50, from Hong Kong, said they were looking for a property with sea view and good facilities to invest in.

“Good location will be an added value to the property,” Ng said while checking the City Residence project in Tanjung Tokong by Ivory Properties Group Bhd at the fair yesterday.

Another couple from Shanghai, Liu Jun and Hua Wen Xin, both 49, were checking out Ewein Zenith’s City Of Dreams project in Gurney Drive.

“We are interested in having a property at a bay on Penang island. It would be a good investment for us. Location plays an important role,” Liu said.

New Zealander Brad Harman, 31, echoed similar sentiments, saying suitable location would be his first preference while looking for property in Penang.

“I understand that investing in the property market in Penang is profitable as it’s growing rapidly. This may be a good time to look for one but it will be a better choice when it has a good location too,” he said.

Henry Teoh, 29, and his girlfriend Jesslyn Tan, 24, both insurance agents from Penang who are searching for a second property in the state, said they were looking for a landed home since their first property is a high-rise.

“We prefer to have the house on the island as we think that the land value on the island is higher and it will be a good investment too,” Teoh said while checking the properties offered by IJM Land Bhd.

Sales and marketing executive Marie Kam, 37, who was eyeing Sentral Suites by Malaysian Resources Corporation Berhad (MRCB) in Kuala Lumpur Sentral, said the development attracted her due to its location.

“KL Sentral is a prime location in Kuala Lumpur,” she said.

At The Star’s booth in Gurney Plaza, retiree Ho Kam Hoong signed up for a one-year standalone ePaper subscription for RM180.

“I prefer The Star ePaper since it is more convenient as I can surf the news from anywhere.

“I like the lifestyle, social event and sports sections,” said Ho who received a complimentary RM20 Starbucks card, three free spins in the fair’s Spin & Win Contest and two additional months of free ePaper for signing up for the package.

More than RM50,000 worth of prizes are up for grabs in the Spin & Win Contest during the four day fair which is being held at Gurney Plaza and Gurney Paragon Mall.

The fair also offers visitors the opportunity to win a one-bedroom serviced suite worth over RM550,000 at PJ Midtown in Section 13 of Petaling Jaya, Selangor, under the Win A Home (WAH) campaign.

Simply like and follow the StarProperty.my Fair Facebook page, then register online at wah.starproperty.my or at the WAH booth in Gurney Paragon Mall, to get one entry.

Finally, complete a creative slogan in English.

Those who buy properties during this and all subsequent StarProperty.my Fairs until Dec 31 will be entitled to multiple entries.

Visit http://fair.starproperty.my for details and the terms and conditions.

The public could also sign up for the Penang Starwalk 2017 on Sept 10 and Fit For Life Fun Run on Nov 19 during the fair at The Star booth in Gurney Paragon.

The fair, organised by the Star Media Group, is open daily from 10am to 10pm until Sunday. Admission is free.

RM78,000 house four decades ago now priced close to RM1mil

PROPERTIES are a hedge against inflation as their value increases with time, said full-time property investor Kaygarn Tan.

Citing a single-storey house in Island Glades in Penang as example, he said the price doubled from RM78,000 in 1977 to RM158,000 in 1988.

“In 2015, it was priced at RM900,000,” Tan said in his talk titled ‘Creating Wealth Through Property Investment’.

He described the current property market as soft where purchasers hold much of the power in negotiations.

“This sentiment is shared by many business analysts and experts. It is now the buyer’s market.

“The people should grab the opportunity as sellers will be more flexible in their pricing,” he added.

Lawyer Khaw Veon Szu, in his talk titled ‘A Landmine-free Roadmap to Property Ownership/Investment’, said buying a property was arguably the biggest investment for ordinary people.

He advised buyers to equip themselves with basic knowledge of property purchasing and trust nobody.

“They should exercise due diligence, especially on the background of lawyers or real estate consultants before they engage their services,” he said.

In another talk, feng shui master Stephen Chin provided feng shui tips on selecting the right home.

The property education talks were brought to the fair by BDB Land.

Source: The Star/ANN

Educating the young urbanites

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GEORGE TOWN: Well-known developer BDB Land Sdn Bhd has launched its Property Education campaign at the StarProperty.my Fair 2017 organised by Star Media Group, in Penang.

Aimed at providing valuable insights into home ownership for the public, it includes informative talks at the four-day fair which ends today.

There will also be radio segments on 988 and Suria at prime time daily starting Aug 2, and digital content on The Star Online, to reach out to a broader audience.

The radio segments encompass topics like current property trends, upcoming developments, sub-sales market information, property investment, legal aspects, first-time buyer tips, foreign property news and more.

For the digital segment, there will be videos on various aspects of property ownership.

First-time buyers should benefit from the buying guide 101 that includes budget planning, things to prepare for, payment procedures and renovation costs, among others.

For experienced home buyers, there are also topics to look out for, such as refinancing a property, selling a property without making losses, who to approach if defects are found with the property, questions to ask the developer, and the importance of real estate management.

Izham presenting a momento to bin Yusoff, June Wong, Chief Content Officer of Star Media Group and her colleagues in Penang.
Izham presenting a memento to Wong. With them are Liong and Hwang.

BDB Group managing director and the BDB Land Sdn Bhd executive director Datuk Izham Yusoff said the campaign was in line with their EZY Home programme for young urbanites.

“Our track record of successfully delivering homes in self-sustaining townships in Kedah for over 30 years puts us in good position to give advice.>

“This reflects our long-standing commitment to help individuals own a home,” he said after the launch which started with an ice-breaking session by Suria Cruisers who engaged visitors in games and a quiz.

Also present were the company’s sales and marketing head Anneta Hassan, marketing and product development head Fadzil Amidi Ahmad and sales head Mohd Shukry Shuaib.

Joining them were Star Media Group Content Development chief operating officer June Wong and regional operations general manager (north) Simone Liong, as well as Star Media Radio Group general manager of sales Erin Hwang.

The public forums, themed “Let’s Talk Property”, continue today with sessions on “Attacting Wealth by Applying Vasthu Sastra (Indian Feng Shui)” at 11.30am by T. Selva, and “How Incredible i-Ching Helps Boost Prosperity in Your Home Fengshui” at 1.30pm by Mak Foo Wengg.

Popular with the masses: Visitors checking out The Light City project at the IJM Land’s booth during the StarProperty.my Fair 2017 at Gurney Plaza, Penang.

Completing the line up are talks on “5 Trends That Will Change the Malaysian Property Market Forever” at 4pm by Ahyat Ishak, and Penang Property Outlook at 5.30pm by Leon Lee.

The StarProperty.my Fair 2017 is organised by Star Media Group.

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Political tone at Penang heritage do


Politics was the name of the game at George Town heritage event involving a wealthy Chinese community leader and the current and former Chief ministers of Penang.

IT is rare to see the current and former chief ministers of Penang together but there they were, sharing the same stage at a heritage event at one of the most historical sites in George Town.

But going by the expressions on their faces, they seemed less than thrilled unlike the host of the occasion, Zhang Wei Lu, who was seated between them.

Zhang, a wealthy and good-looking businessman and currently chairman of the Penang Chinese Clans Association, looked buoyant and confident even though he is embroiled in a brewing dispute with the state government. His composure was all the more remarkable given the news reports in the Chinese vernacular press about his personal life just days earlier.

At the heart of Zhang’s dispute with the state government is a heritage property in George Town known as “50, Love Lane” which is historically connected to the Ghee Hin secret society in the 1800s.

The trustees who oversaw the property have died, leaving behind a backlog of unpaid property charges that resulted in the property being forfeited by the state.

The association has been trying for years to redeem the property but things took on an accelerated tone after Zhang came into the picture and discussions with the state government became strained along the way. The ties were also marred by disputes over state allocations for the association’s cultural events.

Things came to a head last week at the association’s annual heritage festival.

The Chinese clans and guilds have long been a part of local politics in Penang and politicians tend to dance around them because of their perceived clout over the community.

Over the years, it has been the practice for the chief minister of the day to attend but relations with the state government had grown so awkward this year that Zhang’s invitations to the state exco drew a blank. Only one state exco said he would be there.

As a result, the association turned to former chief minister Tan Sri Dr Koh Tsu Koon to launch its event.

Dr Koh was said to be quite reluctant because he had made a clinical cut with all things political after retiring from politics. His status on Facebook is listed as “Writer” and he has been working on his memoirs.

It is understood that Dr Koh only agreed to attend after Zhang told him that Lim Guan Eng would not be able to make it. Dr Koh is not the confrontational type and he was not interested in getting into a conflict.

But according to Zhang, a day before the event, he was informed that Lim would be attending. It was too late to change the arrangements and that was how Zhang found himself sandwiched between the sitting and former chief ministers.

That was when things took a rather political turn. Zhang made what some thought was a rather political speech. He praised Dr Koh for his contributions to the state and thanked him and the former state government for laying the foundation for George Town’s Heritage City status.

There is a Chinese saying, jie dao sha ren (borrow a knife to slay someone), and those watching on could see that Zhang was using Dr Koh to hit out at the state government.

It was a significant moment because members of the former state government had been treated like the proverbial black sheep since 2008 and Dr Koh had been like some kind of invisible man in Penang where he lives.

“It was the first time a big Chinese association had openly acknow­ledged and thanked Dr Koh for his contributions,” said Gerakan politician Dr Thor Teong Ghee.

Zhang also used the occasion to hit out at politicians for their “dirty politics” and for attacking him on personal matters.

He was referring to Chinese press reports quoting some DAP politicians who had dug into Zhang’s academic background.

The Chinese media often refers to him as “Dr Zhang” but checks by the DAP side showed that he did not complete his medical studies in Taiwan and they also questioned reports that he had furthered his studies in the Philippines.

There was also an awkward protocol moment which some thought was disrespectful to the Chief Minister. Normally, the highest ranking guest speaks last but Dr Koh was the final speaker.

The former and current chief ministers are as different as night and day and it was reflected in their respective speeches.

Lim was his usual combative self. He elaborated on his achievements for Penang and at one point, he sort of challenged Dr Koh to contest the general election and let the people decide on who they wanted.

But he did indicate that the state government would abide by the law on the “50, Love Lane” issue and he urged the association to consult their lawyers to find a solution.

Dr Koh played the gentleman po­li­tician. He said Penang’s Heritage City status was a long and challenging effort that would not have been possible without the input of his state exco members and the backing of the federal authorities.

“It is also the success of the people, of the different races, so we have to preserve it for the future generations,” he said.

The issue of “50, Love Lane” has become more complicated now that it has strayed into political waters.

Jelutong MP Jeff Ooi, who has a weekly column in the Penang-based Kwong Wah Yit Poh newspaper, had written on the issue: “Politicians and office-bearers come and go but the assets of the community are forever. We have to think of the long-term interests of the community. We have our expiry date and his (Zhang) expiry date is May next year.”

It was a signal to Zhang that his term as association chairman will end in May and he should not delay the legal process if he wants to be part of the solution.

Is the “50, Love Lane” issue a sign of the shifting tides in Penang Chinese politics?

Source: The Star by Joceline Tan

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Two virtual coin get-rich schemes red-flagged by Malaysian Central Bank


GEORGE TOWN: Two more popular financial schemes in Penang have been red-flagged by Bank Negara Malaysia (BNM).

A check on the financial consumer alert list yesterday showed MBI International Sdn Bhd and Mface International Sdn Bhd to be the latest additions.

Both are subsidiaries of MBI Group International, a company with investors worldwide, many of them from China.

To date, 302 companies have been listed under the BNM financial consumer alert list, for suspicion of not adhering to relevant laws and regulations administered by BNM in their operations.

Under the Financial Services Act 2013, individuals or businesses involved in illegal financial activities can be fined up to RM50mil and jailed for 10 years.

When contacted by a Chinese daily, MBI International chairman Tedy Teow’s special assistant Alfa said he did not think that the company would face any problem.

“And it is unnecessary for us to hold a press conference to explain the situation to our investors.

“We are always doing our work and we believe that our investors can see how we are performing so far,” he told Sin Chew Daily.

An investor, H.L. Teoh, said he put in RM22,500 early this year and was given 10,000 game redemption credits.

“Actually, I can start selling it every six months, but I was advised to wait for it to grow bigger in three years.

“When you have lots of credit, it is like having a lot of virtual shares.

“Now, I will have to wait for further instructions from the company before my next course of action,” he said.

Members are allowed to spend their loyalty points, which are converted from virtual money or coins, in exchange for goods and services at affiliated companies, including a supermarket, restaurants, a gym and even a durian stall.

Meanwhile, a press conference called by a branch representative of another controversial financial scheme operator, JJPTR, was cancelled at the last minute.

Press members in Penang had received an invitation from a man known only as Lim at 8.30am yesterday.

However, no reason was given for the cancellation.

JJPTR has been grabbing headlines in the past few weeks since its founder Johnson Lee claimed that the company had lost US$400mil (RM1.738bil) due to a purported “hacking job”.

Lee and two of his top aides have been detained by the police to facilitate investigations following several police reports lodged against JJPTR.

In another case, 19 Chinese nationals lodged police reports in Kuala Lumpur against another multi-level marketing company, claiming that they had lost hundreds of thousands of ringgit.

They claimed to have lost between 100,000 yuan (RM62,536) and 700,000 yuan (RM437,754) since investing in the scheme by Monspace last year.

Founded in 2014, Monspace is listed as a multi-level marketing company, according to the Com­panies Commission of Malaysia.

In an immediate response, Monspace said it would take legal action against any group or individual making defamatory statements against it.

The company said in a statement to the media that it was functioning professionally and had engaged a law firm to keep track of statements made about it.

Source: The Star/ANN by Crystal Chiam Shiying

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Angry & frustrated investors lodged report, tell off staffs trying to buy time!


Angry investors who lodged a police report at the Pekan Kinrara station. Waiting for answers:

His first investment scheme failed with losses estimated at between RM400mil and RM1.7bil but JJPTR founder Johnson Lee has brazenly come up with a new one offering even higher returns of 35% a month and with a car, motorcycles and smartphones thrown in as lucky draw prizes. Many of his investors still have faith in him but those in another scheme, Change Your Life, are in a quandary. They now have to choose between getting lower returns or changing to ‘life points’ – and waiting.

Show me the money: Investors making enquiries at Icon City in Bukit Tengah, Bukit Mertajam. The money scam issue has got many who have parted with their savings feeling anxious

 

JJPTR offers ‘better’ plan

//players.brightcove.net/4405352761001/default_default/index.html?videoId=5418686139001

http://www.thestar.com.my/news/nation/2017/05/03/jjptr-offers-better-plan-founder-promises-higher-returns-but-stays-mum-on-refunds/

After the spectacular collapse of his previous financial scheme, purportedly because of a hacked account, controversial scheme operator Johnson Lee has rolled out a new plan, claiming to offer even better returns.

While JJPTR’s earlier scheme – which ended with RM500mil missing from the company’s account – offered returns of 20% a month, this new one offers 35%.

On top of that, it offers special lucky draws with a new car, motorcycles and smartphones as prizes.

What the company did not say in the shining glossary of the new plan is how Lee plans to address the US$400mil (RM1.73bil) losses he claims the company has incurred.

The new scheme also does not explain how he plans to repay those who lost their money to the earlier scheme.

The one-and-a-half minute video Lee uploaded shows that the new plan is based on a “split mechanism” and has three rounds.

The initial investment in US dollars is “split” or doubled in each round. Half of it is re-invested in the scheme and rolls over to the next round.

Each round lasts 10 days and investors are allowed to convert their earnings back to ringgit after three rounds.

Anyone who invests US$1,000 (RM4,331) is expected to receive US$450 (RM1,949) in each round, making it a return of US$1,350 (RM5,847) by the end of round three.

Under the proposed new scheme, investors will also be rewarded with JJ Points, which can be used in exchange for goods via its shopping platform JJ Mart.

The new scheme was announced by the 28-year-old Lee last Tuesday after news broke that his company had gone bust.

The company did not say when the new plan would start.

Attempts to contact Lee were futile and the number listed on the JJPTR Facebook page is already out of service.

A visit to the company’s offices in Penang showed that investors were no longer lining up for answers.

Instead, the staff, who preferred not to be photographed, were seen sitting at empty counters.

Penang-based JJPTR, or Jie Jiu Pu Tong Ren in Mandarin (salvation for the common people), came under the spotlight when investors complained that they did not get their scheduled payment last month.

JJPTR, JJ Poor to Rich and JJ Global Network are among the entities listed as unauthorised companies under Bank Negara Malaysia’s Financial Consumer Alert.

Records from the Companies Commission of Malaysia showed that JJ Global Network was a “RM2 company” owned by Lee and his former girlfriend Tan Kai Lee, 24. Each hold a single share.

Lee’s father Thean Chye, 58, and Tan are also directors of another company called JJ Global Network Holdings Bhd.

Thean Chye, who was an assistant professor at Southern University College in Johor, resigned on Wednesday after the JJPTR losses came to light.

Source: The Star/ANN

Investor tells off staff after failing to get refund 

 

Business as usual: Employees explaining the refund process and new scheme to investors at the JJPTR main office in Perak Road, Penang.

GEORGE TOWN: An investor, frustrated over not getting a promised refund on his stake, told off several female employees at the main JJPTR office in Perak Road.

The man, in his 40s, was heard having an exchange of words with the staff after being told that it may take “a few more days” before he could get his money.

He told them Johnson Lee, the founder of JJPTR, had said that the money was refunded to JJ2 scheme investors some days ago.

“But until today, I haven’t got my money back.

“I just want to know if the refund has been made or are you in the midst of processing the refund?

“If he has not started the refund, just be honest with the investors.”

He insisted on getting a firm date on when he would get back his money but the employees replied that they would need at least five working days.

He then demanded their names but they refused him.

“You don’t even dare give me your names. If I want to lodge a report, I won’t be able to provide the police with details.

“And don’t tell me you need days for a bank transfer. It only takes hours,” he said.

As he left the office, several journalists approached him for comment but were turned down.

“I don’t want to talk to reporters. You are all just causing trouble for us. I can get things done on my own,” he said.

JJPTR, or Jie Jiu Pu Tong Ren (“salvation for the common people” in Mandarin), is a Penang-based company that came under the spotlight when its investors complained that they did not get their scheduled profits last month.

According to online and media reports, the investors stand to lose RM500mil. They reportedly number in the tens of thousands, comprising Malaysians and foreigners from Canada, the United States and China.

Lee, who has blamed the loss on hackers, put the figure at US$400mil (RM1.75bil) in a widely-circulated video clip.

JJPTR, JJ Poor to Rich and JJ Global Network are listed as unauthorised companies by Bank Negara Malay­sia.

Source: The Star/ANN

JJPTR just trying to buy time, says ‘scam buster’ 

 

“Scam buster” Afyan Mat Rawi has ridiculed JJPTR’s new plan, calling it “unsustainable” and nothing but a forex scheme to placate angry investors.

Once a victim of an investment scam himself, the 37-year-old financial adviser said investors should stay away from the scheme, which he described as “illogical”.

“The investors are angry right now, and JJPTR is trying to pacify them by introducing this new plan.

“A 35% return at the end of the three rounds (one month) is illogical. Where would the company find all the money to reinvest?

“The new plan is just a way for them to buy time,” Afyan said.

He said any investment scheme promising returns of more than 15% in a year will ultimately collapse.

“No legitimate scheme will guarantee an annual return of more than 15%. Any scheme claiming to do otherwise has to be a scam.

“Like most other pyramid schemes, the (JJPTR) forex scheme will collapse when there is no entry of new investors.”

Afyan said that despite getting flak from investors after allegedly losing RM500mil due to its accounts being hacked, it was still “possible” for JJPTR to entice old and new investors to subscribe to the new plan, which promises higher returns and special lucky draws.

“Some investors may leave, because they no longer see hope but those in the “top tier” will continue finding new victims as they’ve already invested so much.

“Unfortunately, there will still be people who believe in them,” he related.

Commenting on a video of founder Johnson Lee announcing the new plan via JJPTR Malaysia’s Facebook page, Afyan said the laws in Malaysia were not harsh enough to serve as deterrent for so-called “scammers”.

He claimed that the only person to have been severely punished for operating an illegal investment scheme was Pak Man Telo, or Othman Hamzah, who was jailed and banished to Terengganu from Perak in the early 1990s.

Othman reportedly enticed 50,000 people to invest in his getrich-quick scheme, commonly known as the Pak Man Telo scheme, and managed to rake in RM90mil before being arrested, tried and sent to prison for two years. He died in Terengganu a few years later.

Ever since then, Afyan claimed, convicted scammers have been getting away easy.

“At most, scammers will be arrested and remanded. But you don’t hear about them serving time in prison. They’ve already made millions, billions, in profits.

“A penalty of a few thousand ringgit is nothing to them,” he said.

Afyan, who lost RM300 to a getrich-quick scheme while he was a university student in 2003, worked in Islamic insurance and financial planning after graduating.

He created a Facebook page in 2008 to share information on questionable investment opportunities, earning him the nickname “scam buster”.

He claims to have uncovered about 50 dubious companies so far.

Source: The Star/ANN

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