Keeping the middle class happy

This is an excellent observation that I thought (tongue in cheek) may resonate with some quarters in Malaysia:

Keeping the middle class happy is also the party’s concern. Over the past decade, despite a rhetorical shift to the left, the party has tailored policies to avoid antagonising such a politically crucial group. It has been adept at isolating and containing protests by angry farmers or the urban underclass, using a mixture of intimidation and pay-offs. But it is less sure that it could deal so adroitly with grievances shared by swathes of the middle class.

The extract is sourced from this piece.

Minimum wage

Whether or not to implement a policy on minimum wages for workers in Malaysia. As the owner of services-based SMEs, I don't have a problem if the Malaysian government decides to implement a policy on minimum wages. In fact, I support the idea of minimum wages.

But, I am aware that the issue is not a simple one. The Malaysian economy still depends on fairly labour-intensive industries. The primary industries sector of oil palm plantations is particularly labour-intensive. The workers are unskilled.

On the other hand, Malaysia aspires to be a Knowledge-based and Services-based economy. Our macroeconomic indicators point to the growth of Services-based industries. Workers in these sectors are semi-skilled and skilled. Extensive training is required. Even hospitality and tourism industries require some degree of certification now. This is a good thing. It ensures that there are minimum standards of services.

There is indication that the Malaysian government is taking a sensible approach of segmentation of minimum wage policies based on the peculiar labour supply-demand matrices of each economic sector. This is the correct approach. One size can never fit all.

To engender a sensible discussion on this matter (as opposed to brainless hysterics), here's a pro and con view of the matter of whether a formal minimum wage policy should be instituted. It is sourced from here. 

The following table summarizes the arguments made by those for and against minimum wage laws:

Arguments in favor of Minimum Wage Laws Supporters of the minimum wage claim it has these effects: Increases the standard of living for the poorest and most vulnerable class in society and raises average.[1] Motivates and encourages employees to work harder (unlike welfare programs and other transfer payments).[32] Stimulates consumption, by putting more money in the hands of low-income people who spend their entire paychecks.[1] Increases the work ethic of those who earn very little, as employers demand more return from the higher cost of hiring these employees.[1] Decreases the cost of government social welfare programs by increasing incomes for the lowest-paid.[1] Encourages the automation of industry.[33] Encourages people to join the workforce rather than pursuing money through illegal means, e.g., selling illegal drugs [34][35]

Arguments against Minimum Wage Laws Opponents of the minimum wage claim it has these effects: As a labor market analogue of political-economic protectionism, it excludes low cost competitors from labor markets, hampers firms in reducing wage costs during trade downturns, generates various industrial-economic inefficiencies as well as unemployment, poverty, and price rises, and generally dysfunctions.[36] Hurts small business more than large business.[37] Reduces quantity demanded of workers, either through a reduction in the number of hours worked by individuals, or through a reduction in the number of jobs.[38][39] May cause price inflation as businesses try to compensate by raising the prices of the goods being sold.[40][41] Benefits some workers at the expense of the poorest and least productive.[42] Can result in the exclusion of certain groups from the labor force.[43] Is less effective than other methods (e.g. the Earned Income Tax Credit) at reducing poverty, and is more damaging to businesses than those other methods.[44] Discourages further education among the poor by enticing people to enter the job market.[44

Interlok revisited

I have not been following the controversy over the usage of the Abdullah Hussain's book, Interlok, in Malaysian secondary schools. I was, however, aware that the peeve was over the usage of the "P" word that offended sections of the Malaysian community. 

I just read an opinion on the impugned book by Raman at his Silverfish blog. 

It appears that the "P" word was used only twice.

More importantly, here is Raman's take on Abdullah Hussain's book. It is a view that I subscribe to largely because I have the utmost respect for Raman who is a publisher of books and a very important facilitator for English-language writers in Malaysia. Without the likes of Raman, Malaysians who have an urge for literary expression in written English will suffer from interminable lexicographic constipation. Anyway, here's Raman@Silverfish's opinion:

______________________________

I was going to write about something else, but two things happened that made me change my mind. First, was this gentleman I met who asked me what I did for a living? Then when he heard that I was a publisher, he immediately asked my opinion on the Interlok controversy. I started cautiously by saying that I had read the book, both the Malay and English versions, but before I could continue he asked:

“You mean you have read the book?”

I stopped in my tracks. It was a bizarre question and a bizarre moment. Why was he asking for my opinion if he thought I hadn’t read the book? If he wanted a hysterical uninformed opinion, there was plenty going around. Perhaps, he thought I would abandon scholarship for tribal loyalty and salute the flag he was waving, without a second thought. Perhaps, he was surprised that I could read Malay and, worse still, admit it. Perhaps, he was shocked that, in these days of self-righteous chest-thumping, I dared to look at an issue from another angle.

Second, was this email from one person (whom I shall leave him unnamed): DOES A LOYAL MALAYSIAN INDIAN DESERVE THIS KIND OF INSULT IN A COUNTRY HE CALLS MOTHERLAND ?????????? (Yes, all in capitals, 18 point fonts and in red colour, to boot).

My opinion of the book in question is that, though wobbly in (many) parts and a little naïve, it is certainly one of the better Malaysian books I have read. It is, basically, a story of the human spirit. Abdullah Hussain’s empathy with his characters (whether it is Seman, Cing Huat or Maniam) is quite admirable. Read the following, for example:

Kadang-kadang dia masih lapar. Bau roti yang dibakar dan disapu serikaya menimbulkan rangsangan dalam kepalanya untuk makan, bau makanan yang di masak oleh penjual nasi di sudut kedai itu menimbulkan nafsu untuk makan dan kadang kadang dia melihat daging babi yang tergantung dengan lemaknya yang berminyak-minyak itu, menggoda dia untuk makan. (Interlok, page 156)

(Sometimes he (Cing Huat) remained hungry. The smell of bread being toasted and spread with serikaya would stimulate his brain to eat, the smell of rice being cooked by the food seller next door triggered his appetite and sometimes when he saw the  (roast) pork hanging with its fatty oil dripping, it would entice him.)

A Malay writer talking about the smell or lard from roast pork? No, Abdullah Hussain is not afraid to go where no one else dares, if it serves his art. I hugely admire his research, his craft and his courage. And he is, certainly, no racist.

As for the offending “p” word it appears twice in the book:

Satu perkara besar yang membuat mereka senang bergaul ialah mereka itu tergolong dalam satu kasta Paria. Mereka tidak takut mengotori sesiapa kalau bersentuhan dan mereka bebas lepas bergaul. (Interlok, page 251)

(One thing that made it easy for them to mix around was the fact that they were all from the same Pariah caste. They had no fear of polluting anyone they touched and were free to mingle.)

One feels for Maniam. Yes, this is how he would have felt, coming from a background of centuries of oppression and suppression. Abdullah Hussain got it right. (Mulk Raj Anand would have applauded, too.) Taking the “p” word out would be doing injustice to the Maniams of the world. It would have been precisely because of his caste that he would have been considered untouchable and unclean, and he would have had every reason to be nervous.

Di sini, Maniam dapati perbezaan perkerjaan menurut kasta, seperti yang masih berlaku di negerinya, tidak ada.

Pertama kali inilah yang ditanya oleh Maniam kapada Muthu, seorang kawan dari desanya yang sudah lama tinggal di Pulau Pinang. Muthu seorang dari kasta Paria, seperti Maniam juga, dia berkerja sebagai kerani di sebuah gudang orang putih dekat perlabuhan. (Interlok, page 257)

(Over here, Maniam noticed that working according to one’s caste was not in practice.
That was the first thing that Maniam asked Muthu, a friend from the same village who had lived in Penang for a long time. Muthu was from the Pariah caste, just like Maniam, and he was working as a clerk at the godowns belonging to the white people near the port.)

There is nothing negative about this section either. It is a statement of fact. To a person like Maniam, this would have been a big deal indeed. He could do any work he wanted, even become a clerk like his friend Muthu, his Malaysian Dream, his ticket out of hell.  According to an article in the Malay Mail on Monday 24th August, 2009, 65% of MIC members belong to this caste although they now refer to themselves as Namavars – our people. Again, Abdullah Hussain’s research cannot be faulted.

Interlok is the story of three people and their trials. Seman is devastated when he learns from his father on his deathbed that the land they have been tilling all these years does not belong to them but a Chinese towkay, Cina Panjang. Chin Huat leaves his mother to come to Malaya with his father to escape an impending famine in China. Maniam travels to Malaya, the land he keeps hearing about, leaving his wife behind to escape crippling poverty. And in the end, they all get together and live happily ever after (which, in hind-sight, is the actual fairy tale).

The first part about Seman is, probably, the best written. Cing Huat’s section is good, too, though Abdullah Hussain does not say how or why this personable Chinese lad transforms himself into the predator businessman, Cina Panjang. The Maniam section is the weakest part and is riddled with minor and major errors. It is as if the author, tired of research, resorted to watching a few Tamil movies for the right cliches -- complete with the long suffering hero, the unfaithful wife, the totally evil villain (Suppiah), the mandatory rape scene followed by the suicide of the victim, and the long lost son who discovers that the prisoner in his police lockup is really his father. Corny to the max.

Then, the final scene is all Malaysian TV during elections: sugared to the hilt to induce terminal diabetes in the entire population of a small country.

But, one thing remains unclear, though. By some accounts, the version to be used in school is an abridged one (and not the 503-page original). If that is the case then all my comments above could be completely off the mark, because I have no idea what has been taken out and what remains. Knowing the track record of our gomen pen-pushers over decades past, I am aware that they are capable of being quite jahat about it.

Anyway, the cabinet has appointed a committee to look into the matter. This, normally, means that nothing will happen. Some new crisis will emerge and we all forget about Interlok. We are, after all, Malaysians.

The one good thing to come out of this crisis is that many people are reading the book, and Interlok is sold out in most bookshops. Good on you, Abdullah Hussain.

The Inequality Wildcard

To continue with the matter of the economic factors that is triggering off the socio-political unrest in Tunisia and Egypt, in addition to the issue of unemployment, we have to also be mindful of the issue of income inequality or, the growing gap between the rich and the poor.

The matter of the rich-poor gap is beyond the mandate of economic planners. This is a matter that falls squarely in the domain of political leaders.

Economic planners can merely point out the dangers of the rich-poor gap. But, greedy and avaricious political leaders who are interested in making themselves, their family and crony friends rich will ignore the warning of the hapless economists.

This rich-poor gap is increasing in Malaysia.

Of course, the rich-poor gap is not unique to Malaysia. In fast-developing economies like China and Vietnam the gap will increase very fast before narrowing over time. But, countries like China and Vietnam are unleashing years of languid development. There is a sense of being in a hurry.

In contrast, Malaysia is at an economic developmental crossroad. Too expensive to be in labour-intensive activities and, yet, not skilled enough to get into high value-added and innovative knowledge-based activities.

In Malaysia's current position, the rich-poor gap is discomfiting. Unless Malaysia's political leaders address this issue urgently, this rich-poor gap may cause socio-political tension over time.

My biggest fear is that such tension will be distorted by stupid Malaysian politicians who will frame the issue in terms of race when the issue is actually one of poor ethics and abusive governance.

Anyway, read what Kenneth Rogoff has written in the sidelines of the Davos summit here. 

The Youth Unemployment Bomb

The events in Tunisia and Egypt should rightly scare all governments throughout the world. There will be many different views on the catalytic factors that led to the groundswell of public emotions that are threatening to ignite various nations in the Northern African and Middle Eastern belt.

The obvious commonality between Tunisia, Egypt and, Yemen is that these nations have predominantly Muslim populations. I'm no so sure about the relevance of Islam as a common factor for these events. Nor do I think that authoritarianism and lack of freedoms are relevant catalytic factors.

To me the more interesting and relevant common denominator in these nations is the high level of unemployment. Unemployment is the main trigger cause of the unrest.

And, equally so, the preponderance of youths among the unemployed of these nations is another key factor.

My view is that it is the poor economic health of these nations that have created huge numbers of unemployed youth that, in turn, have channeled their considerable restless energies into political protests in these nations.

This is the lesson that we have to quickly learn in Malaysia.

I suggest that the first module be the piece from Bloomberg-Businessweek here.

I sincerely hope that our economic planners and political readers read it and start reviewing how our economy is planned and managed. Prevention is better than cure.

The moral is that if everyone has a fairly decent job that pays a decent wage that puts decent food on the table, there will peace and harmony.

Alternatively, no jobs, no food and plenty of idle time is a dangerous combination.

Gong Xi Fa Cai 2011

GONG XI FA CAI to all Malaysians celebrating the Chinese Lunar New Year and Happy Holidays to everyone else.

pix from here.

There is much that I wish to say. But, I am too busy living and enjoying my life. My thoughts and opinions will have to remain in my head until later.

How I will cast my vote - PAGE + PPSMI

The issue of reverting the medium of instruction of the Science and Mathematics subjects in Malaysian schools from the English language to Bahasa Malaysia still burns in the depths of my soul.

After I read this report in the Malaysian Insider, I have resolved to cast my vote in favour of the political party that supports the maintenance of English as the medium of instruction for Science and Mathematics.

All the bullshit politics make no sense to me.

But, the issue of educating Malaysians to the greatest advantage possible and, to equip young Malaysians to compete at the global level makes eminent sense to me.

I have seen how my children benefited from PPSMI since it was implemented in 2003.

Two of my children are still in school at Form Two and Form 4.

I don't care what any politician, political party, NGO or any publicity-seeking hound says anymore.

I support PAGE's stand.

The Malaysian Government should stick to the maintenance of English as the medium of instruction for Science and Mathematics.

Stay the course.

And, I will support the political party that supports the maintenance of English as the medium of instruction for Science and Mathematics.

It will be that simple to get my vote.

SME

Just over half or 56% of total employment comes from this sector where 19% to the nation's total exports stem from. 

The segment also represents 99% of total business establishments and is a substantial contributor to the country's gross domestic product at 31%.

Sourced from here.

Given the stats above, why do my SME friends still feel orphaned and unappreciated and are finding difficulty with obtaining funding support?

More action, less words, please.

English in Math and Science - PAGE Forum Sunday 16 January 2011

Time for IPPs to help the rakyat

Kudos are due to Business Times for this op-ed piece. This blog has hammered the IPPs for the lop-sided Power Purchase Agreements (PPA). The BT's op-ed reminder is timely. I implore the government to pay heed to this perspective that come the time to renegotiate the PPAs, the government must support Tenaga Nasional's position and pay heed to the massive burden that the Malaysian consumer has to endure with this example of dodgy privatisation model.

Here's the BT op-ed piece:

Sweetheart deals that the first-generation independent power producers (IPPs) secured in the early 1990s will expire in stages from end-2014 or 2015.

It is often highlighted that these IPPs have collected billions of ringgit from lopsided power purchase agreements (PPAs) that put them in very minimal or an almost zero-risk environment.

The IPPs are YTL Power Generation Sdn Bhd, Genting Sanyen Power Sdn Bhd, Segari Energy Ventures Sdn Bhd, Powertek Bhd and Port Dickson Power Sdn Bhd. They are controlled by some of the country's richest families and individuals.

Constitution of the State of Selangor

The Constitution of the State of Selangor.

I have attached above the url link to the Constitution of the State of Selangor.

pix from here.

This time is a good opportunity to understand the importance of constitutions.

There are many explicit provisions and procedures in constitutions.

At the same time, there are many practices or conventions that have been taken for granted or overlooked.

pix from here.

This is as good a time as any to flick the dust of the Constitution of the State of Selangor and look at it with an objective and unbiased mind.

Nor should politics and partisanship dilute the executive powers vested in the Menteri Besar of Selangor.

What is the proper procedure for the appointment of the State Secretary of Selangor?

Who initiates the process of appointment of the State Secretary of Selangor?

Does the Menteri Besar of Selangor have any constitutional role to play in the appointment of the State Secretary of Selangor?

In these inquiries, let the Rule of Law be our guiding principle.

And, let not politics and partisanship affect the dignity and standing of DYMM Sultan Selangor.

Allah lanjutkan usia Tuanku.

-extracted from the State Anthem of Selangor-

HAPPY NEW YEAR 2011

It is tempting to gaze into the crystal to see what one hopes 2011 will be like. Well, less racial nonsense will be a very good thing. 

No prayer in the world will prevent excessive politicking from occurring in Malaysia. But, unlike straightjacketed places like Singapore or China, Malaysia has a vibrant democratic ethos. So, politics or, even the excess of it, is something we will all have to accept.

That is not a bad thing if there is sufficient civility and a large dollop of good sense.

pix from here.

I, for one, am very proud of our great nation.

No, it's not just because I cheered myself hoarse in both legs of the Suzuki AFF finals where our young Harimaus broke valiant Indonesian hearts.

And, it's not just because my firm's order book for 2011 looks damn promising.

It's because Malaysia has weathered the results of the 2008 General Elections very well in spite of the sea-change from BN's loss of it's two-thirds majority.

Yes, there has been a lot of unsatisfactory tactics and blatant cheating. Yes, corruption still needs to be tackled even more firmly. Yes, street crime is still a source of great concern for all Malaysians.

These are challenges that we shall have to face.

It is the job of the Loyal Opposition to throw brickbats. Equally, it is the job of the Party in Government to counter the brickbats and swing some of its own. That's democracy. 

As citizens, it will be for each of us to dutifully support any leader who argues for stronger audits of the governance of the Federal Centre and each of the States.

Above all else, to my mind, we must be the most vigilant about the Local Governments whose incompetence, bad planning and sheer abuse and neglect, has caused each and every one of us to suffer from traffic jams, poor road maintenance, non-functioning traffic lights, unlit street lights and the list goes on. We, the ratepayers, must hold those buggers running the Local Governments to account.

For, in the final analysis, the average citizen's most frequent contact with the GOVERNMENT is at the Local Government level.

Have a good New Year celebration, Malaysia.

MERRY TROPICAL CHRISTMAS 2010

MERRY CHRISTMAS 2010

pix from here

My seasons greetings to all Malaysians who are celebrating Christmas. To the rest of Malaysia and elsewhere, I wish you happy holidays.

I thought a tropical Christmas picture will balance out the news of winter chills and airport closures in the Northern Hemisphere. 

Ronald Coase turns 100

Many blogger buddies may be piqued to learn that part of Ronald Coase's work, if properly applied by Rais Yatim's Ministry, would have prevented much of the criticism levelled at the Minister, the Ministry and the Commission that regulates telecommunications in Malaysia.

Read Coase's description of his work in this area (emphasis added by me):

"I made a study of the Federal Communications Commission which regulated the broadcasting industry in the United States, including the allocation of the radio frequency spectrum. I wrote an article, published in 1959, which discussed the procedures followed by the Commission and suggested that it would be better if use of the spectrum was determined by the pricing system and was awarded to the highest bidder. This raised the question of what rights would be acquired by the successful bidder and I went on to discuss the rationale of a property rights system." 

I stumbled onto Ronald Coase's considerable corpus of work on economics and law when I was pursuing postgraduate academic studies. 

Coase is best known for the following work which I have embedded links to Wiki:

Nature of the firm;

The problem of social cost; and, most especially (to me)

Economic analysis of law aka Law and Economics.

More to the point, Coase's work is extremely helpful when we try to evaluate the costs and benefits of government regulation. Malaysia can certainly use Coase's methodology when deciding on economic policy and regulations within the context of fair economic competition. But, this is not the time and place to discuss the matter. This post is about honouring Coase and his contribution to our understanding of the economics of commercial transactions and government regulations for which he was awarded a Nobel Prize in Economics.

Coase, born on 29th December 1910, will turn 100 next week. An amazing longevity achieved by an amazing mind.

The Schumpeter column of The Economist has rightly honoured the man who was born in the United Kingdom and, since 1951, resided in the United States.

Coase was awarded the Nobel Prize in Economics in 1991. I offer you his autobiography written by Coase himself in 1991 on the occasion of the Nobel Prize award:

Zhuge Liang as a Tragic Hero

Don't mind me. It's just me squirrelling away some acorns during my period of hibernation...

Zhuge Liang as a Tragic Hero:

His Failure to Win against Heaven's Will due to His Confucian Beliefs

Sourced from here. An essay by AshleyTerra. 

A star falls to announce the death of Zhuge Liang, one of the most beloved characters of Three Kingdoms. At first glance, the attraction seems obvious: he is popular because he is a hero with a whole slew of victories. In fact, he is so successful and skilled that many, including C.T. Hsia, consider him the main hero of Three Kingdoms (31). As a scholar hero, he kills opponents "with the tip of his tongue, or, better, of his brush" instead of a sword and is both "daring and courageous… in court and council" (Ruhlmann 161). However, this interpretation fails to provide a satisfactory explanation because the novel is filled with successful heroes, like Zhao Zilong, who never gains the same adoration. When one takes a look at the historical Zhuge Liang, one would find that he was "simply a prominent figure to whom one might feel varying proportions of admiration or disgust… as toward any other influential person in public life" (Henry 604) despite all his successes in his lifetime. It was only after his death that popular sentiment turns to adulation, beginning in the area where he died (Henry 608). This gives the necessary clue to suggest that it was not Zhuge Liang's successes as a scholar hero that endeared him to the public, but rather the tragic nature of his heroism as a Confucian hero.

Borowitz slays me

Here's the headline from the satirical, political lampooning, take-the-Mickey-out-of-politicos, Borowitz Report....

U.S. Orders Diplomats to Stop Telling Truth Until Further Notice

WASHINGTON (The Borowitz Report) – In the first major policy fallout from the WikiLeaks disclosures, the State Department has ordered all U.S. diplomats to “cease and desist telling the truth until further notice.”

“We are working overtime to try to make sure that leaks like these don’t happen again,” Secretary of State Hillary Clinton told reporters.  “But until we’ve got the leaks plugged, it’s incumbent on all our diplomats to put on their lying caps.”

Secretary Clinton noted that since many US diplomats are major political donors with long careers in the business world, “this shouldn’t be a reach for them.”

But for those career diplomats who came up through the Foreign Service, the State Department will be holding a series of “truth avoidance seminars,” led by executives of Goldman Sachs.

Additionally, Secretary Clinton said, the State Department would install on all diplomats’ computers new software called CandorShield™, which automatically translates truthful language into a less embarrassing truth-free version.

For example, she explained, the software would translate the phrase “two-faced weasels” into “trusted Pakistani allies” and would delete all references to French President Nicolas Sarkozy as “Monsieur Shorty Pants.”

Elsewhere, Interpol issued this statement about its pursuit of WikiLeaks founder Julian Assange: “We will find Julian Assange, and then we will hire him.”

Facebook Shares Get Sliced Into Derivatives as Value Surges

Don't mind me. I'm just putting this up as a resource. But, since I'm at it, I may as well say what I think in the deep recesses of my vacuous mind.

I'm endlessly fascinated and, at the same time, repulsed, by the numbers of ways in which equity, equity-type, financial, and financial-type products can be derived and derived upon derive from a basic equity or debt instrument.

Here we have another derivative product. It is linked to a super-duper company, Facebook. 

This report is from Bloomberg:

Facebook Inc.’s surging valuation is spurring shareholders to slice and dice their stock, giving investors everywhere from Silicon Valley to Wall Street a chance to bet on the company.

Laffer Curve + Irish Implosion

To me an interesting article begins with an anecdote. So, Chris Farrell's piece on Arthur Laffer and his Curve, weaved with supply-side economic thinking as lead-ins to the current Irish economic crisis is, most certainly, an interesting article.

Basically, the point is that reduction of taxes a'la Ireland, is not a panacea to the challenges of managing an economy. But, then again, what policies are ever permanent? Of course, Farrell is dealing with the current set of economic challenges in the Western world - dealing with an era of tax cuts and deregulation - and witnessing the sheer and wanton abandon with which financial institutions failed to apply common sense and risk management principles.

Let me not get carried away.

I will just tease you with the opening lines of Farrell's piece. Then you can click on the "read more" to, well, read more:

It may be the most famous dinner in economic history. Arthur Laffer was a professor at the University of Chicago. In December 1974 he dined at the Two Continents Restaurant in Washington, D.C., with Donald Rumsfeld, chief of staff to President Ford; Dick Cheney, Rumsfeld's deputy; and Jude Wanniski, associate editor at The Wall Street Journal. According to Wanniski, Laffer grabbed a napkin and pen and sketched out the Laffer Curve, illustrating the trade-off between tax rates and tax revenues. In a few more years the tax-cut philosophy dubbed supply-side economics would dominate fiscal policy under President Ronald Reagan.

Microfinance Dominates Indonesian Shariah-Compliant Loans

The trend of microfinance products gaining traction in populous nations like Indonesia will have positive results for their economy. I've been a fan of microfinance for some time now. My previous blogposts on this will bear me out. 

However, as always, the caution is always on the mode of delivery. The Grameen model is the ideal one. I'm not sure how Indonesia is doing the delivery of microfinance products. But, if banks are the ones providing the delivery of microfinance products one key feature of the Grameen model will certainly be absent. This is the feature of community-guarantee, where five borrowers who are known to each other will collectively guarantee and vouch for each other. This feature has been, in my view, crucial in reducing the rate of defaults in microfinance loans. 

The absence of this feature has been my concern about Malaysian-based microfinance products.

Simplify

In tandem with my hesitant entry into microblogging, I have also decided to ditch the claustrophobic feel of the library template to go for absolute simplicity. No more frills.