I read this news over and over, just keep feeling that our PM’s brain has gone KUKU.
He said:’ Malaysians should have confidence and be prepared to invest in the KLSE to attract bigger foreign participation
“When Malaysians show their confidence and their preparedness to invest in their own stock market or in their own country, this will give a signal to investors to come in bigger numbers to Malaysia,” the Prime Minister told the Malaysian media here on Wednesday.
Not sure about you, but my purpose of investing in KLSE is certainly not to attract bigger foreign participation. I am not rich enough to do this national duty. To be honest, how many of our existing market investors (including those from UMNO and children of our Ministers) are doing as what our PM said. We only invest if we think something is going to bring us returns, attracting foreign investor is the last thing on our minds.
It is not our job to attract foreign investor, but it is our Government’s job to do so. What is the use of Trade minister and all her officers if not to path business opportunities locally and abroad? What is the use of Educational Minister and all his officers if not to formulate a winning education system to ensure our country have plenty supply of work force to meet global demand? The list will go on to other Ministers who are handling different part of infrastructures in the country… Why do they need the normal Malaysians to use own money to dress the KLSE so that it looks good for foreign investors??
I was talking to my brother just before CNY as he has returned to KL after months in Slovakia. I told him about the then bullish stock market and I warned him not to join in the game. You know what youngster would do with the Ang pow from Company and Per diems. In my opinion, the CI was too high and too risky. Obviously, I told him because I care. I care about his savings and I don’t want him to be in financial trouble when his new apartment is ready.
Now, do you think our PM care about us? I seriously doubt it. In this article he actually called for all Malaysians to lift the KLSE and don’t be frighten by the falls in markets in other countries. Not only that, he has previously (after CNY) vowed Malaysians to continue support the market to hit the record 1300 (ish) points! I genuinely hope that nobody (yes NOBODY) will listen / have listened)to him. Not because I don’t want KLSE to recover from the corrections.
In year 1999, KLSE had another bull run and CI was around 1000ish. I had just started working with AMO earning about 2k plus. Naively, I dumped almost all my savings (about 10K) into the market as it was so attractive. 3 weeks later, the market suddenly took a U turn and I was too afraid to cut losses. I stuck, big time. 10k at that time on my earnings, meant a lot to me. Last week I sold some of these old craps to recover the remaining, think I am only getting back about 3K capital. So I basically made losses even though I have managed to sell them in another bull run. I’ve been there and it wasn’t fun at all. It could mean not having enough money to own your own house, car or prepare for wedding, all the inconveniences and … etc etc…
Anyway back to our PM. I am not sure why he seems to think investing in KLSE is like makan kacang. Maybe it is a lot easier for him as he is the main man behind the people who decides which government contract goes to which company. For the normal people out there, it will still be lot lot safer to keep to the legendary winning formula ‘BUY LOW SELL HIGH’ rather than listening to Badawi’s crap - eng.