Friday, September 29, 2017


KATA orang sesebuah gambar boleh membawa 1000 erti.

Banyak tafsiran boleh dibuat mengenai gambar di atas ini.

Khairy Jamaluddin keseorangan? Khairy membelakangi "SESEORANG"?

Lebih menarik, Jelapang telah terjumpa jawapan kepada soalan-soalan yang dikemukakan oleh blogger Kadir Jasin semalam.

Soalan-soalan ini terjawab menerusi tulisan seorang lagi blogger OUTSYEDTHEBOX.

Antara dakwaan, benar atau palsu, yang diutarakan oleh blogger ini:

1. Ada cakap-cakap bahawa Tok guru Bawang memberitahu bahawa beliau dimaklumkan "Appa" mahu mengenepikan "Jawa Man". Blogger OutSyedtheBox mendakwa mereka sedang merancang untuk sabotaj "Jawa Man" semasa pilihanraya nanti.

2. Hubungan antara "Appa" dan "Minister of Horse Polo" renggang.

3. Jason Loh, rakan seorang Menteri ditangkap di Dubai atas dakwaan salahguna dadah.

4. Ada VIDEO SEX melibatkan pegawai kanan kerajaan.

5. 10 juta pai daripada 90 juta pai yang diberikan kepada Bawang diberikan kepada anak "Tin Sadin". Kesemua 10 juta pai ini hilang apabila perniagaan komestik wanita bungkus.

Ini semua adalah dakwaan blogger OUTSYED THE BOX semata-mata. Mungkin benar, mungkin tidak.

Image result for sex tape
Tulisan penuh blogger OUTSYEDTHE BOX di bawah ini:

Yesterday I rode the LRT after quite some time. I have that LRT card but there was less than RM2 left so the turnstile gate would not open. I went to the ticket machines (at Ampang Park) to upload some money into the card. No big deal. Then I saw that the screen had changed. Log, Pass 1, 2, 3, 4 popped up. Bottom line I could not upload cash. So I went to the counter. The boy at the counter said ‘Kad ini tak boleh pakai’. I said ok, can I buy another card. The boy hesitated. He kept repeating ‘Kad ini tak boleh pakai’. So I said, ‘Takpa saya nak beli kad baru. Saya nak balik rumah’. The boy was still hesitating. There was some manager type person also inside the ticket booth so I said that the screen is different. The Indian guy said no, the screen was the same. Actually the screen had been changed about three months ago – the ticket boy told me later. I had not taken the LRT for more than three months. I just wanted to buy an LRT card but by this time I am having a slightly annoying conversation with two people inside the ticket booth. The Indian guy then nodded to the ticket boy who again sort of reluctantly sold me a new LRT card for RM20.00.

What is going on? Are you folks phasing out the LRT cards? Use Touch n Go only? Buy one way tickets only at the machine? Take Uber? Walk on the tracks? I say, dont keep people guessing. Or waiting. Just tell people what we can or cannot do.

Nasib baik ada monopoli. Kalau tak ada monopoli, dah lama dah engko orang bungkus. Tak tahu customer servis, tak tahu cakap simple dan betul, tak peduli kat orang – how can you survive in any business?

Ok I digress. I told an Indian friend about the strange animal behaviours (my previous blog post). He said that some human beings are also behaving strangely. He said ‘There is one fellow now claiming to be my Appa’. Which I thought was strange too.

Talk is that Dumbno is facing serious internal stresses as well. The power structure in Dumbno is now broken up into a few factions. The entire lot recognise the predicament that Appa has created for them. They are ALL fully aware – without exception. But they are still willing to stand behind Appa because they believe that the Opposition will not be able to win in the next elections. You don’t have to win outright brader. Ours is a multi party democracy. The cat will get skinned. Rest assured about that.

The other growing power faction in Dumbno would like Appa to step down BEFORE the elections. They want HHO to lead the party into the elections. This is the 2nd Force inside Dumbno and is growing in stature at a rapid clip.

The 3rd Force in Appa’s team are his closest advisors. These are the real nasties. These are the hangers on. These folks are doing all sorts of nasty things even among themselves. They are sabotaging each other as well. Sh__f__din better watch out. Bapak hang pun bukan asal dari Kerala brader. Hang totok mana? Tapi sebelah hang tu ada satu dua ekor anak Kerala gunning for you. They have offered money. Watch out !!

Talk is that Tok guru Bawang has made it known that Appa told him that he wants to get rid of the Jawa Man. As though we could not have guessed this. But it has moved further along. They are planning to sabotage Jawa Man in his constituency in Perak in the elections. By the way, November 2017 is looking to be a likely time to have the elections – less than 60 days away. So things will be moving quickly soon after this. The 2nd Force may have to move quickly too.

(Folks, if the Barisan Nasional crooks still win the elections, then I am out of this game. You morons can have the gomen and the country and you can go to hell with it. Which you indeed will. I am less than 30 months away from turning 60 and I do believe I will have other things to do. Most probably I will be sorting out how to survive the disaster that is looming. Believe me, they will certainly go to hell.)

There has also been a major falling out between Appa and the Minister of Horse Polo. In the recently concluded sea games, Appa was pissed when the crowd booed him during the closing. He got even more upset when the crowd cheered wildly for the Horsing Around Minister. Talk is Appa summoned the Horsing Around Minister TWICE to come and see him. The Horsing Minister did not go. Appa then asked Jawa Man to summon the Horsing Around Minister. Still he refused to meet jawa Man.

Maybe the Horsing Around Minister will quit and join PKR? Or Pribumi. Yukk.

By the way who is Jason Loh? A fellow called Jason Loh has been arrested in Dhubai or somewhere over some drug charges. Folks say he is the very good buddy of guess which Minister ??

Talking about getting high, people in the know say that there is another sex video tape. Also involving a top gomen official. The people who have possession of the tape are “investigators” who report to the same guy who is in the tape !! Yup folks. Its a video of their “new” Boss having a good time with some woman – the wife of someone. Ha ha ha. Its NOT the Police IGP ok. Tan Sri Fuzi is a good man.

The Sarawak BN folks really want to dump the KL BN. The recent SPRM investigations on that sale of the hotel to Felda has sunk its hooks on a few top people in Kuching but that may not be enough to frighten Sarawak. The feeling on the ground in Sarawak (and Sabah) is so anti BN (Semenanjung). To respect the true majority, Sarawak may also see an Iban Chief Minister. And it might stay that way for a long time.

By the way, recall that 90 million Malaysian pies that were given to Bawang. Where did those moolas go? It has come to be that at least 10 million pies went to Tin Sadin’s son. And get this, he has lost ALL those 10 million pies in a failed venture to produce ladies cosmetics. Bodoh punya anak retard – tak tahu niaga.

By the way who is Tan Sri O__m_n of the M____sian S_____ Service who has been given 30 million pies to buy over Parti Wal Retard? Bayar depa satu juta satu bulan ke Tan Sri? If you are reading this, you know people are watching you as well. Jangan buat kerja kosong. Recall your oath to serve the nation. You serve the people. Not the corrupted politicians.

There are more problems for Dumbno. The economy is really grinding down. To make matters worse a couple of the GLC banks are having some issues. Even Cap Harimau is having some issues. When you say “issues” it means loans turning bad or risky loans. Cap Harimau insiders say they have become a ‘political bank’. They are sitting on some not so good loans. Big ones. The other ‘Bank Melayu yang sudah tukar nama banyak kali’ is sitting on another pile of loans that are not doing so good. One loan for about RM1.7 – 1.8 billion has already turned bad. The borrower cannot “dredge” deep enough.

To digress again, that Khazanah fellow was “asked” to resign. Khazanah was having their Board Meeting in Turkey and Appa sent someone to inform the Khazanah guy that they wanted him to resign. Or else .. .. . All that ‘thank you for your services’ was just wayang. Appa did not like his testimony at the RCI. As I said before, this is another case of disposable toilet tissue. After they have used these folks to wipe their behinds, they can just cut them loose.

Gomen insiders are panicking about the gomen’s debt obligations that are due in the next few years. Tun Dr Mahathir says Appa has borrowed over RM200 billion already. The latest being that RM55 billion to build that railroad. The gomen just will not be able to service all this debt. They are going to come to a crashing halt. Unless they tap into KWSP, KWAP, PNB etc. Issue more sukuk and take out more and more money. All our savings will be gone.

These are serious problems, regardless of who will win the elections. Appa and the dumbnos do not know how to handle the problem.

The problems can be fixed, and it can be fixed very quickly. But people have to be fired, some must go to jail (Truth Commission, Royal Commissions, special Task Forces must be set up to investigate them – right down to their underwear. The Pribumi boys have already put some baddies on notice, beside Appa and gang.)

There are ways to turn around the economy in double quick time. It can be done. Have faith folks.

But not with the BN in power.

Majlis Tertinggi Dumbno cannot understand this.

Jadi Bawang cannot understand this.

Ketuanan people with PhDs also cannot understand this.

So how do you expect the middle classes and the kampong folks to understand this? They will run out of petrol, then they will get down from their cars, stand there and just stare at the sky. Then they will say “Eli, eli lama sabachthani ?

There was more. Tapi tak boleh cerita semua perkara lah.


Thursday, September 28, 2017


Image result for kadir jasin

JELAPANG tertarik dengan tulisan blogger Kadir Jasin.

Ada beberapa persoalan diketengahkan oleh Kadir menerusi blog beliau.


1.Apakah implikasi penahanan Ketua Pemuda Umno Bagan Datuk oleh Suruhanjaya Pencegah Rasuah Malaysia (SPRM) terhadap Ketua Bahagian merangkap Timbalan Perdana Menteri, Menteri Dalam Negeri dan “pemangku” Timbalan Presiden Umno, (Datuk Seri) Ahmad Zahid Hamidi?

2. Apakah benar Presiden PAS, Tuan Guru (Datuk Seri) Abdul Hadi Awang menyimpan rahsia siapa dalam Umno dan Kabinat yang Perdana Menteri,(Datuk Seri I Mappadulung Daeng Mattimung Karaeng Sandrobone Sultan Abdul Jalil) Mohd Najib Abdul Razak, tidak percaya?
Image result for khairuddin+kereta+isteri
3. Apakah benar duit yang KONONNYA dibagi oleh Najib/Umno kepada PAS digunakan untuk berniaga (antaranya kosmatik) tetapi rugi?

4. Apakah benar Ketua Pemuda Umno merangkap Menteri Belia dan Sukan, Khairy Jamaluddin, sudah hilang peranan sebagai peneraju National Transformation (TN50)?

Khairy (kiri) "dilucutkan" peranan dalam TN50?

5. Apakah benar berlaku keretakan besar di antara KJ dengan bosnya sehingga jemputan untuk berpow-wow pun tidak diendahkan?

6. Apakah benar sebuah GLC yang diaspirasikan oleh Najib yang kini mengalami masalah perniagaan gagal menunaikan syarat hutang kepada sebuah bank GLC yang penting kepada pelaburan Bumiputera?

Banyak rakyat jelata hendak tahu kerana soalan-soalan di atas adalah renspons saya kepada soalan yang mereka tujukan kepada saya.


Wednesday, September 27, 2017


Image result for digital mall ismail sabri

APA jadi kepada Mara Digital Mall?

Mana Ismail Sabri, Menteri Kemajuan Luar Bandar dan Wilayah, yang dahulunya mendabit dada kononnya mahu membantu peniaga Melayu menyaingi Low Yat yang terkenal sebagai pusat ICT?

Berikut kenyataan Ismail Sabri pada 15 Disember 2015:

“Saya sangat mengharapkan sokongan orang Melayu dan Bumiputera untuk kejayaan Mara Digital ini. Perancangan saya untuk membuka di seluruh negara bagi lahirkan lebih ramai usahawan Melayu dalam bidang IT. Saya tak kisah kalau tak mau sokong tapi jangan cuba gagalkan. Saya hairan sepatutnya kita suka harga turun. Sepatutnya kita suka sewa percuma untuk bantu orang Melayu tapi saya dihina dan dicerca kerana nak tolong Melayu."

Semalam, satu laporan disiarkan mengenai RUNGUTAN peniaga di Mara Digital bahawa JUALAN MEREKA MEROSOT 60 PERATUS.

Dan lebih menarik, KADAR SEWA AKAN DINAIKKAN 5%.

Adakah ini cara membantu orang Melayu yang diwarwarkan oleh Ismail Sabri dahulu?

Adakah jika tidak dinaikkan sewa, Mara terpaksa tutup Mara Digital Mall sepertimana dilakukan kerajaan terhadap Kedai Rakyat 1Malaysia?

Kita amat hairan, apa yang berjaya di era Najib Razak ini.

Mara Digital Mall bermasalah. 1MDB lingkup. Kedai Rakyat 1Malaysia bungkus.

Image result for digital mall ismail sabri

Dan di mana Ismail Sabri?

Sebelum ini bukan main buat kenyataan hendak membantu peniaga Melayu dan kalau boleh mahu bankrapkan Low Yat.

Sekarang peniaga Melayu di Mara Digital merungut. Bantulah.

Dalam keadaan perniagaan mereka merosot, sewa dinaikkan?

Bukankah Mara kaya raya? Sehingga mampu menaja pasukan bolasepak.

Janganlah biarkan, Mara Digital Mall dilabelkan sebagai SATU LAGI KEGAGALAN NAJIB.

Kesian lah pada bos you, Dato' Mail.

Tuesday, September 26, 2017


Image result for kedai rakyat 1 malaysia najib

Image result for kedai rakyat 1 malaysia tutup

RAKYAT Malaysia nampaknya sudah semakin berani cakap sinis, perli-perli Najib Razak dan kerajaan. Tetapi setakat bercakap di kedai kopi saja lah.

Kalau hendak tahu, mata dan telinga kerajaan kena sanggup meninjau ke akar umbi dan dengar rintihan rakyat.

Kedai Rakyat 1Malaysia yang diperkenalkan pada tahun 2011 oleh Najib nampak macam sudah gulung tikar walaupun Menteri yang bertanggungjawab membuat kenyataan ianya distruktur semula.

Dahulu apabila ditubuhkan, katanya. ia bertujuan untuk membantu golongan berpendapatan rendah membeli barangan keperluan dengan harga lebih rendah.

Rupa-rupanya KR1M ini tak tahan lama.

Maka ada yang menjadikannya bahan jenaka.

Ada yang berjenaka:

1. Kerajaan pun tak mampu nak urus kedai runcit.

2. Kerajaan pun terjejas dengan kenaikan harga barang, apa lagi kita rakyat marhaen.

3. Pelik betul lah, kedai runcit kerajaan pun tak larat hidup, padahal kedai-kedai runcit Pak Ali, Ah Chong, Samy atau kedai runcit mamak tak pula ada masalah.

Tapi tidak mengapa. Kerajaan pun tak kisah sebab rakyat tak kisah. Setakat bising-bising tin kosong. Bila masa mengundi, parti yang sama dipilih. 

Itulah hakikatnya.

Monday, September 18, 2017


KALAU KELUAR Umno dan hendak masuk balik, buat macam Tan Sri Muhammad Taib.

Bagi satu Malaysia kelam kabut, termasuk Timbalan Perdana Menteri Ahmad Zahid Hamidi, terpaksa singkatkan lawatan ke Perlis, bagi Menteri-Menteri kelam kabut, bagi Menteri-Menteri Besar kelam kabut berlari ke Kuala Lumpur, semata-mata mahu menonton dan meraikan bekas pemimpin berusia 72 TAHUN kembali semula kepada Umno selepas melompat ke Pas dan PKR.

Alang-alang nak masuk balik Umno, pastikan yang umumkan kemasukan kita ialah Presiden Umno, Najib Razak.

Dan selepas saja Najib umumkan kemasukan kita, kita buat cara Mat Taib, bagi khutbah kepada orang Melayu dah ahli-ahli Umno yang taat kepada parti dan pemimpin.

Nak bagi nampak lagi molek, Najib hadiahkan jawatan bergaji kepada Mat Taib seperti mana Lokman Adam, Ezam Mat Noor dan Nasharuddin Mat Isa yang bergaji beribu ringgit sebulan.

Atau bagi jadi duta macam Zahrain Hashim di Indonesia.

Yang bagusnya, Ketua Umno Selangor Noh Omar pun puji Mat Taib. Jelas sekali Noh selama ini tak mampu menang di Selangor kecuali dengan kembali semula Mat Taib kepada Umno Selangor.

Nak lagi cantik, bagi Mat Taib bertanding dalam PRU-14 nanti, paling sesuai di Hulu Selangor.

Jelapang tak berapa minat cerita Mat Taib ini, kerana Jelapang masih lagi meraikan kejayaan Najib di Amerika Syarikat.

Apa tidaknya, siapa sangka Malaysia, negara dunia ketiga, boleh bantu Amerika Syarikat, negara paling maju di dunia, dengan berbilion ringgit untuk memajukan lagi negara mereka.

Kita jangka terpengaruh dengan cerita-cerita di bawah bahawa sekolah tak ada duit nak cetak nota murid, hospital tak ada kertas nak cetak data untuk pesakit atau universiti tak ada dana nak buat penyelidikan.

Jika tak ada duit tak akan kita boleh bantu negara Amerika yang pernah menyerang Iraq dan Afghanistan yang membunuh berjuta rakyat Islam. 

Betul tak Hadi Awang?

Berikut sebagai rekod, kenyataan Najib kepada Trump baru-baru ini.

Remarks by President Trump and Prime Minister Najib Abdul Razak of Malaysia Before Bilateral Meeting

Cabinet Room

12:11 P.M. EDT

PRESIDENT TRUMP: Thank you very much. It’s great to have the Prime Minister of Malaysia and his very distinguished delegation with us today. We’re talking about trade -- very large trade deals. We’re working on one deal where between 10 and 20 billion dollars’ worth of Boeing jets are going to be purchased, General Electric engines will be purchased, and many other things.

Also, Malaysia is a massive investor in the United States in the form of stocks and bonds, and the stock exchange. And they have to be very happy because we’re hitting new highs on almost a weekly basis. And so we’re very proud of our stock market and what’s happened since I became President. So I congratulate you on those investments.

But I just want to say, it’s an honor to have you here. It’s an honor to have your delegation with us. I believe you’ll be at the United Nations next week, and a lot of folks are going to be at the United Nations next week. It should be an exciting week, and we look very much forward to that.

But I want to thank you very much for all of the investment you’ve made in the United States. Also, the Prime Minister has a major role in not allowing ISIS -- or, as you say, Daesh -- and others to exist. And he’s been very, very strong on terrorism in Malaysia, and a great supporter from that standpoint. So that’s a very important thing to the United States.

He does not do business with North Korea any longer, and we find that to be very important. We had a vote yesterday on sanctions. We think it’s just another very small step -- not a big deal. Rex and I were just discussing -- not big. I don’t know if it has any impact, but certainly it was nice to get a 15-to-nothing vote. But those sanctions are nothing compared to what ultimately will have to happen.

So thank you everyone for being here, and we appreciate it. Mr. Prime Minister, it’s a great honor to have you in the United States and in the White House. And thank you everyone for being here. Thank you very much. Thank you.

Would you like to say something?

PRIME MINISTER RAZAK: Thank you very much, Mr. President, for your invitation for me and members of my delegation to meet with you at the White House. I want to say that we come here with a strong value proposition to put on the table.

Number one, we want to help you in terms of strengthening the U.S. economy. I come with three specific proposals. Number one, we intend to increase the number of Boeing planes to be purchased by MAS. We are committed to 25 planes of the 737 MAX 10, plus eight 787 Dreamliners. And there is a strong probability -- not possibility – probability that we will add 25 more 737 MAX 10 in the near future. So within five years, the deal will be worth beyond $10 billion. That’s one. We will also try to persuade AirAsia to purchase GE engines.


PRIME MINISTER RAZAK: Secondly, we have Employees Provident Fund, which is a major pension fund in Malaysia. They’ve got quite a big sum of capital to be exported. They have invested close to $7 billion, in terms of equity, in the United States. And they intend to invest three to four additional billion dollars to support your infrastructure redevelopment in the United States.


PRIME MINISTER RAZAK: And thirdly, our sovereign fund, Khazanah, they have an office in Silicon Valley. They have invested about $400 million, in terms of high-tech companies, and they intend to increase that investment as well.

Secondly, the other goal of your administration, Mr. President, which is to make the United States safe -- and with that, the world safe -- we are committed to fight Daesh, IS, Al-Qaeda, Abu Sayyaf -- you name it. They are the enemy of the United States, they are also the enemy of Malaysia, and we will do our part to make sure that our part of the world is safe.

We will also contribute in terms of the ideological warfare because you need to win the hearts and minds. And the key to it is to support moderate and progressive Muslim regimes and governments around the world, because that is the true face of Islam; that is the authentic face of Islam. The more you align with progressive and moderate regimes, the better it would be in terms of winning the hearts and minds of the Muslim world.


PRIME MINISTER RAZAK: So, Mr. President, thank you once again. The United States has always been our partner for a long, long time. And this year is our 60th anniversary of our relationship, and I hope that today’s meeting will make it even stronger in the years to come.

PRESIDENT TRUMP: Thank you very much. Appreciate it.

12:18 P.M. EDT

Thursday, September 7, 2017


Image result for nor mohamed yakcop+forex

"Saya tidak pernah membincangkan soal urus niaga yang dibuat antara 1986 hingga 1993 tersebut dengan Perdana Menteri dan Menteri Kewangan ketika itu, Tun Dr Mahathir Mohamad dan Datuk Seri Anwar Ibrahim."

"Tidak dapat dinafikan, kerugian forex berlaku. Tidak dapat dinafikan kebertanggungjawaban saya dalam perkara itu. Saya menerima 'bahagian saya' dan meletakkan jawatan daripada Bank Negara."

"Ketika itu, ia seperti pengakhiran yang menyedihkan untuk 25 tahun khidmat saya kepada negara melalui BNM." - Tan Sri Nor Mohamed Yakcop.

Berikut kenyataan penuh Nor Yakcop kepada Suruhanjaya Siasatan DiRaja Urus Niaga Tukaran Asing sebagai rekod:

Nor Mohamed Yakcop’s full written statement at RCI hearing

Updated 15 hours ago · Published on 6 Sep 2017 6:40PM · 0 comments
1. I JOINED Bank Negara Malaysia (BNM) in September 1968. I was promoted to the post of manager, Banking Department in 1986.
2. The Banking Department was responsible for external reserves management, regulation of the domestic money market, including the discount houses, development of Islamic banking, approval of domestic bond issues, managing the Export Credit Refinance Facility (ECR), development of new financial institutions and promoting trade by way of Bilateral Payment Arrangement (BPA) with other central banks in developing countries. When I resigned from BNM in April 1994, I held the post of adviser. I re-joined BNM again, as an adviser, in September 1998, after the implementation of the Unorthodox Measures, which I will describe later in my statement. I served in BNM in that capacity until April 2000. In May 2000, I was appointed as the economic adviser to the Prime Minister, and subsequently, in January 2004, I was appointed as the Minister of Finance II. In April 2009, I was appointed as Minister in the Prime Minister’s Department responsible for the Economic Planning Unit (EPU). I retired in May 2013, and joined Khazanah Nasional Berhad as deputy chairman in June 2013.
Policy imperatives of active external reserves management by BNM
3. Prior to 1985, BNM was not active in external reserves management, including forex trading, given the relative stability in the international foreign exchange market.
4. The situation changed in 1985. On 22 September 1985, five OECD countries, met in private at the Plaza Hotel in New York and decided among themselves, without consulting other countries, that the yen and the German Deutsche mark should be strengthened significantly against the US dollar by way of market intervention. This is known as the Plaza Accord. The Plaza Accord was historic because it was the first time central bankers agreed to intervene in the currency market in such a big way and the first time in history when governments set target foreign exchange rates to be achieved through active intervention.
5. One important outcome of the Plaza Accord was that the exchange rate of the yen versus the US dollar strengthened sharply. (The yen strengthened from 240 yen to the dollar in 1985 to 120 yen to the dollar by early 1988).
6. The strengthening of the yen resulted in many developing countries suffering huge losses, since a significant portion of their external borrowings was denominated in yen. The Malaysian government, government agencies, including GLCs, as well as the Malaysian private sector suffered significant forex losses on repayment of yen loans and foreign exchange revaluation of yen loans, following the sharp appreciation in the value of yen arising from the Plaza Accord.
7. Malaysia’s borrowings in Yen during the early 1980s were mainly for infrastructure building. At that time, the Malaysian bond and sukuk markets were not yet developed to enable large amounts of borrowings for long periods to be obtained domestically in ringgit. Given that infrastructure projects required long gestation period, the Malaysian government and its agencies chose to borrow in yen, since, at that time, long term yen loans were available with low interest rates. The borrowings also coincided with the building of major infrastructure projects in the country.
8. Since the Plaza Accord of September 1985, the international forex market also became much more volatile, with sharp and sometimes erratic movements in the daily forex rates. While the Plaza Accord of September 1985 was intended to strengthen the yen and the Deutsche mark, another agreement, the Louvre Accord was signed on 22 February 1987 in Paris by six OECD countries, again without consulting other countries, to halt the over-appreciation of the yen and the Deutsche mark, and this created another round of turmoil in the foreign exchange market.
9. This was the background that led to the decision by BNM to begin active external reserves management. I understand that the Commissions attention has been drawn to Allahyarham Tan Sri Jaffar Hussein address in New Delhi, India on 5 December 1988. In that speech the Governor had publicly set out BNM’s rationale for the active external reserves management policy. Let me quote extracts from that speech by Allahyarham Tan Sri Jaffar Hussein:
“Why are we so active in the market now, compared to before? There are a number of reasons. First, until recently, our external reserves were not large, being only US$4 billion at the end of 1984. This has now increased to US$7.8 billion, thus justifying a more active management of reserves.
Secondly, the exchange rate volatility since the Plaza Agreement of September 1985, had changed the stakes of the game. Whereas in the past an active management of reserves might have made a difference on yield of twenty basis points; it now makes a difference of maybe 500 basis points. So it is worth the trouble. Thirdly, forex trading is today a 24-hour business and there are opportunities throughout the day to deal…
I recall one occasion when some bankers made an attempt to speculate against the ringgit in off-shore centres on one of our national holidays, when they thought we would be closed for the day. To their surprise and cost, we opened up our dealing room during that national holiday and intervened in the off-shore centres to stabilise the ringgit and in the process taught those bear speculators a lesson they are not likely to forget…
…When I joined the central bank in 1985 from the private sector, I was informed that the main thrust of reserves management in Bank Negara was to preserve the value of what we have and the main considerations were safety and liquidity. To that, I have added a third and fourth dimension: profit optimisation and market expertise. 
I basically took the stance that risk-taking in reserves management included not only the risk of losses, but also the risk of falling behind inflation, of not earning as much with our scarce resources as we could. The primary motivation is still to preserve and conserve the value of what we have…
To me, in the last analysis, an active reserves management policy goes beyond the additional return and risks. A key advantage is that the active involvement has given us a greater feel of what is really going on in the foreign exchange and capital markets…
Central banking by decree and fiat can no longer budge markets, but market skills and influence of market psychology can do the trick…
I might also add that in a developing country, where foreign exchange trading skills are scarce, it is the duty of the Central Bank to be the provider of skilled manpower in the market, to be an educator of such technical skills and to be in the forefront of banking and computer technology… I notice even the Bank of England is now actively adopting this policy.”
10. The Governor’s main point was that the primary motive for the active external reserves management was the mitigation of the downside impact of major changes in foreign exchange rates on Malaysia’s foreign currency assets and liabilities.
11. Let me repeat what the Governor said in New Delhi: “the primary motivation is still to preserve and conserve the value of what we have.” We sought to acquire the skills to manage the external reserves better and also, in a broader context, to assist the nation when required. The larger deals, beyond the limits given to the forex traders, were to protect the external reserves and the value of the ringgit, by way of diversification. At that time, BNM had no specific limit for such diversification deals. 
12. To understand further the role of external reserves management in achieving the objectives of a central bank, please allow me to elaborate on the link between the stability of the ringgit exchange rate, monetary policy and external reserves management.
Maintaining a stable ringgit in the late-1980s to early-1990s
13. In the Malaysian domestic market, since the late-1980s, there was a continuous large inflow of US dollars by investors, including some short-term inflows or “hot money”. If BNM did nothing, the inflows would have resulted in the ringgit strengthening significantly from the BNM policy range of between 2.50 and 2.80 against the US dollar. That would have created major implications for the economy, particularly since it would have reduced the competitiveness of Malaysian export sector.
This was an important consideration for a country which is one of the largest trading nations in the world.
14. In order to maintain the stability of the ringgit, BNM had to buy the excess US dollars from the banks in Malaysia, in its role as the buyer of last resort for foreign currencies in the domestic market. This activity is termed as BNM’s foreign exchange intervention operations. The US dollars were then used by BNM mainly to purchase US Treasury Notes. The yield on the US Treasury Notes in the early 1990s was on average about 4.5% pa.
15. If BNM did nothing after mopping up the US dollars, there would be the issue of a large overhang of excess ringgit in the system, since BNM would have paid ringgit for its purchase of the US dollars. This large overhang of excess ringgit in the system would adversely affect BNM’s monetary policy. It would cause the ringgit interest rates to fall sharply (based on supply and demand), and create inflationary pressures. Therefore, BNM had to borrow back the ringgit funds that it had provided to the banking system in its intervention operations. The purpose of BNM borrowing back the ringgit funds from the banks is to neutralise the effect of the original forex intervention in the domestic money market. This is known as the sterilisation operation. The borrowing rate that BNM had to incur (during the early 1990s) for the sterilisation operation was about 7.5% pa.
16. Therefore, the combination of the BNM intervention and sterilisation operations would cost about 3% pa. This is because the cost of borrowing back the ringgit was higher than the yield of US Treasury Notes. This negative margin would be recorded as a loss in BNM’s books. In BNM’s active external reserves management, one consideration was to mitigate this loss.
17. The issue of moving into an active mode of external reserves management must also be seen in the context of Allahyarham Tan Sri Jaffar Hussein’s philosophy regarding Bank Negara’s role in national development. I need to elaborate on this point because Allahyarham Tan Sri Jaffar Hussein is no more with us, and it is important that we recognise the wisdom of this great man. The Governor believed that by active management of the external reserves, we will be able to acquire the skills, knowledge and experience required to serve the nation, when required, both in developmental activities as well as to overcome any financial crisis that the nation may face in the future. He termed this as “market expertise”.
Lessons from the 1997/1998 Asian financial crisis
18. Indeed, Allahyarham Tan Sri Jaffar Hussein’s foresight regarding market expertise saved the nation during the 1997/1998 financial crisis. In a strange twist of history, the skills, knowledge and experience acquired in BNM enabled the nation to implement the Unorthodox Measures of September 1998. It provided the nation with the ability to frustrate the foreign currency manipulators, whose intention was to destabilise Malaysia and cause chaos in the socio-economic fabric of the nation. 
Unlike Thailand, Indonesia and South Korea, Malaysia was able to overcome the financial crisis of 1997/1998, without borrowing a single cent from the IMF or the World Bank or anyone else. We reset the Nation back on the growth trajectory without outside help. The Unorthodox Measures of September 1998 saved Malaysia from dire consequences, following the worst financial crisis in our history, and restored the sovereignty and dignity of our beloved nation.
19. In economic terms, the result of the Unorthodox Measures of September 1998 is substantial. Just to illustrate using one of many measures of economic gain, the Unorthodox Measures resulted in the market capitalisation of the Malaysian stock market recovering from a low of RM 181.5 billion on September 1, 1998 to RM 579.2 billion on March 24, 1999, a gain of RM397.7 billion. The Stock Market Index jumped from 262.7 (September 1, 1998) to 851.7 (March 24, 1999), a multiple of 3.24 times.
20. Let me briefly illustrate how the skills, knowledge and experience that we acquired from the forex activities in Bank Negara became critical in formulating the Unorthodox Measures of September 1998:
i. There was great deal of confusion, during the early days of financial crisis of 1997/1998, on the concept of “offshore ringgit”. The initial view was that bags full of cash in ringgit were taken out to Singapore and Malaysian customs officials at the border were instructed to check thoroughly the bags of Malaysians departing to Singapore. Obviously no big amount of cash was found.
I explained to the Prime Minister in 1997 and 1998 that the term “offshore ringgit” does not refer to ringgit physically located outside Malaysia. The bulk of ringgit will always remain in Malaysia. The term “offshore ringgit” refers to ringgit (in Malaysia) which is owned by foreigners. The currency manipulators borrow the ringgit, both local ringgit owned by Malaysians or “offshore ringgit” owned by foreigners, to sell the ringgit for US dollars. This is called short-selling. We knew from our forex trading days that on Black Wednesday (16 September 1992) when pound sterling crashed, Soros had borrowed £10 billion to short-sell the pound sterling. Therefore, an important aspect of Malaysia’s Unorthodox Measurers of September 1998 was to disallow foreigners from borrowing ringgit to speculate. The concept of “offshore ringgit” is very complicated and it took me a few attempts to ensure that the Prime Minister fully understood the term, as you can read from the book 
Notes to the Prime Minister by Wong Sulong published in 2011. I wrote 5 notes on this subject, namely Note 2 (October 13, 1997), Note 13 (December 12, 1997), Note 25 (May 19, 1998), Note 31 and Note 32 (both on June 29, 1998). Without the knowledge acquired at BNM’s forex desk, we would not have fully understood the concept of “offshore ringgit”, which was key to the implementation of the Unorthodox Measures; 
ii. Malaysia initial response during the financial crisis was to increase the interest rate level to stabilise the ringgit. This created chaos for the many business entities, pushing them to the verge of bankruptcy. We knew from experience that this does not work. During the Black Wednesday incident in United Kingdom, the British Government increased the interest rate from 10% pa to 12% pa in its desperate attempt to stabilise the pound. But this move was completely ineffective.
Therefore, our Unorthodox Measures involved, among others, bringing the interest rate down, rather than increasing the interest rates, after fixing the exchange rate at RM3.80 to the dollar, and disallowing foreigners from borrowing the ringgit for speculative purposes. This significant lowering of the interest rates, as well as our measures of implementing an expansionary monetary and fiscal policy, as part of the Unorthodox Measures, saved many corporations from becoming bankrupt and some banks from becoming insolvent; and 
iii. When we pegged the ringgit on 2 September 1998, we pegged it at RM3.80 to the US dollar.
The 3.80 rate was on the weaker side since, based on fundamentals, we could have fixed the rate at 3.50. But we knew that it was better to fix the ringgit at a slightly weaker rate, anticipating that the market players would feel that, at 3.80, the ringgit was undervalued and they would therefore buy the ringgit. We expected that this move would result in large inflow of funds into the country. This is exactly what happened. There were substantial inflows following the peg. 
There were no outflows, as the market players expected the ringgit to subsequently strengthen, not weaken. This was something we learned at the forex desk in BNM
21. In fact, the 45 notes that I wrote to the Prime Minister between October 1997 and August 1998 analysing in detail the 1997/1998 financial crisis and proposing the solution would not have been possible without the market expertise acquired at Bank Negara’s forex desk, thanks to Allahyarham Tan Sri Jaafar Hussein.
22. I should add that even after Allahyarham Tan Sri Jaafar Hussein and I left BNM, we kept closely in touch, meeting regularly for long chats. The last time I met him was in July 1998, a month before he died. We spent two hours discussing about the financial crisis of 1997/1998. I informed Allahyarham that I was working with the Prime Minister to find a solution to the financial crisis, based on the knowledge the he made possible for me to acquire in Bank Negara. He was happy that he had made the right decision on the importance of market expertise and he was confident that we can overcome the crisis. I wrote about this meeting with Allahyarham on August 21, 1998 and it appears as Note 43 in the book “Notes to the Prime Minister” by Wong Sulong. Allahyarham Tan Sri Jaafar Hussein’s contribution to the nation is undoubtedly significant.
My role at BNM in external reserves management in the late-1980s and early-1990s
23. I was tasked with implementing the external reserves management policy as determined by the BNM’s Board having regard to the considerations I have mentioned above. In so doing, I reported both to the Governor and the External Reserves Committee (ERC). I spoke to the Governor on external reserves management regularly, and certainly whenever there was a large movement in the exchange rates. I also reported to the ERC whenever it met. The membership of the ERC comprised, amongst others, the Governor, Deputy Governor, and the Advisors. Further, there were weekly Senior Officers Meeting, where the external reserves matters were sometimes discussed.
These Senior Officers Meetings were chaired by the Governor, and were also attended by the Deputy Governor, Advisors and all Managers. I did not report to either the Finance Minister or the Prime Minister on any issues regarding external reserves management, as that was not my reporting line.
24. I was not involved in deciding on the accounting treatment of the losses. In fact, I have no knowledge whatsoever of the accounting treatment.
25. I was also very careful not to execute any trade by myself, although I had the authority to do so. It was always, without any exception, done by the staff. I did this for the purpose of transparency, so that there would always be more than one person aware of every trade.
26. BNM made significant gains from its trading activities in the 1980s. The loss does not include the gains made in the 1980s. Based on the period of 1985 to 1993, I believe that the total forex losses will be lower. The significant losses that were incurred in 1992 arose from two unexpected events:
i. The unexpected rejection in the Danish Referendum of 1992 of the Maastricht Treaty; and 
ii. “Black Wednesday” on September 16, 1992, when the pound sterling was forced out of the European Exchange Rate Mechanism.
27. In the early 1990s, the European currencies started to gather strength on the basis of the then conventional wisdom that, given the potential for European integration, Europe was going to overtake the United States as the strongest economic power in the World. We subscribed to this view and bought the European currencies and the pound sterling.
28. Unfortunately, following the non-ratification of the Maastricht Treaty by Denmark in February 1992, the value of the European currencies crashed. This was compounded in September 1992 when both the pound sterling and the Italian lira, in which we did not trade, were forced out of the European Exchange Rate Mechanism despite the best efforts of the far more powerful and wealthy European central banks.
29. As we were "long" in the European currencies, including the pound sterling, we suffered significant losses. We were not the only central bank to have suffered significant forex losses as a result of these events.
30. Whenever we received information of large inflows of US dollars from investors, both long-term and short-term, we would decide on whether or not to diversify these inflows into other currencies, depending on the anticipated exchange rate movements. If we expected the US dollar to weaken, we would purchase European currencies forward based on the expected US dollar inflows. The size of the purchases would correspond to the anticipated size of the US dollar inflows.
31. All the external reserves activities, including forex activities, were based on strategic considerations. Admittedly we misread the turn of the market. As staff of a central bank we naturally believed that the Bank of England would win in its fight against Soros. We had confidence in our fellow central banker and bought pound sterling. Unfortunately, the Bank of England lost.
Similarly, our best intelligence was that the Maastricht Treaty would be ratified in the referendum in Denmark in 1992, but unfortunately it was rejected.
32. We learnt a bitter lesson from these incidents. That lesson proved crucial in helping us formulate policies to defend the country against the currency attacks in the 1997/1998 Asian financial crisis, saving the nation hundreds of billions of ringgit that would otherwise have been lost.
33. The forex losses happened. There is no denying it. There is also no denying my accountability for the forex losses. I accepted my fair share of the accountability for the forex losses and resigned from BNM. At that time, it appeared to me to be a sad end to my 25 years of service to the nation, through BNM.
34. However, with the grace of Allah, I was given the opportunity in 1997/1998 to contribute to King and country during the financial crisis of 1997/1998. The important point is that the experience in the forex unit during those years proved extremely useful later in saving Malaysia from the devastating effects of the financial crisis of 1997/1998, which otherwise would have caused losses worth hundreds of billions of ringgit for Malaysia and could have resulted in many Malaysian companies becoming bankrupt, with large scale unemployment and poverty spreading throughout the country. The political stability and the socio-economic framework of the nation would have been destroyed. It was an accident waiting to happen. It did not happen because of the Unorthodox Measures of September 1998, which in turn was conceived and implemented based on the knowledge, skills and experience acquired at the forex desk in BNM.
35. I also contributed to the nation during my second tour of duty in Bank Negara (September 1998 to April 2000) as well in my role as the economic adviser to the Prime Minister (May 2000 to December 2003) and as a federal Minister (January 2004 to May 2013). The record speaks for itself.
* Nor Mohamed Yakcop is former Bank Negara Malaysia assistant governor and adviser.
* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight.

Tuesday, September 5, 2017


Image result for rohingya hadi awang

APAkah cukup setakat memberi AMARAN kepada Myanmar? Apakah cukup setakat memanggil duta Myanmar mengadap?

Itu sajakah yang mampu dilakukan oleh Malaysia dan Najib Razak? 

Di mana presiden Pas Hadi Awang yang kononnya sayangkan umat Islam?

Bila isu Memali dihidupkan semula demi politik, Hadi tak sabar-sabar nak keluarkan kenyataan.

Kini ratusan Rohingya dibunuh di Myanmar dan 123,000 Rohingya yang beragama Islam menjadi pelarian ke Bangladesh, senyap sunyi pemimpin Pas.
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4 Disember 2016 Hadi bawa ahli Pas berhimpun sakan di Padang Merbok kononnya mahu menyelamatkan Rohingya.

Pada masa itu ramai pengkiritik melihat perhimpunan tersebut sebagai lakonan politik untuk menyelamatkan Umno di dalam PRU 14 nanti.

Kini tiba masanya, Hadi dan Najib tampil membuktikan keikhlasan mereka mahu menyelamatkan Rohingya.

Buktikanlah bahawa perhimpunan tahun lepas bukan lakonan politik.

Tunjukkan lah kepada rakyat dan dunia, demi Islam, kita bersama Rohingya dan bertindak tegas terhadap Myanmar.

Tragedi di Myanmar tidak ubah seperti kejadian di Bosnia satu ketika dulu. Ini adalah proses penghapusan etnik Rohingya di Myanmar.