A Tale To Tell & Remember

I'm very much inspired by the words of Thomas L. Friedman in his book "The World Is Flat" which renders about the influence of bloggers in this new age. I want to keep the highest integrity and honesty in posting my words to the world. This blog act as a testimony to my alacrity of sharing information with the borderless world. Hope we can share a high regards of veracity and chivalry with this blog because that's why it is here. So help me God!

Visit Malaysia

Visit Malaysia
Malaysia Truly Asia

Monday, 28 December 2009

An analysis of choices involving risk

By: Ahmad Syah Ejaz B. Hj. Ismail

Most of the time when we discuss the issue of risk or an extension of a one man's patience involving risk, the reaction would be a simple orthodox analysis of an utility involving risk. Which can be translated into a simple phrase "what can be seen and contemplated outcome can be accounted as a reimbursement of a risk taken for a period of time, and if the risk taken would and might lead to a wasteful effort, then it would be an unnecessary effort to take the risk at the first place".


That was the orthodox thinking in analyzing utility involving risk. But as the world grows and the intellectual thinking develops, the product of Capitalism market had changed and swayed away the orthodox analysis of an utility when it involves risk. The power of an individuals in interpreting the outcome of his personal adventure in trying to gain self empowerment through the concept of individual ownership had shifted the connection between utility and risk to a different degree of perspectives. Since then, what is the right choice to take would depends largely on the sole individuals. Risk and utility cannot anymore be associated with physical gains but also would involves a lot of outcome such as self fulfilment, the comfort of certainty and a premium of sacrifices for a larger gain.


As such it can be seen through the fledglings of the insurance companies in the 21st Century when mankind would rather pay a sum of money out of his monthly salary for a certainty such as physical utility that involves car, house and life that are insured with a premium every month. The new phenomena with the insurance companies were never be seen especially during the Cold War can be summarized as individuals would rather choose certainty in preference of uncertainty.


But then not all certainty are good and accepted as a norms in the 21st Century. The hedge funds speculators would agree with this statement and categorized risk into a different level of rational undertakings. 1) Little or no risk at all - most of the time would not create an opportunity for wealth or can offer no satisfaction of a utility; 2) moderate degree or risk - would create an equal chances of wealth and are acceptable if the risk taken can lead to a wasteful event; 3) Much risk - with a probably an extremely gains; and 4) Highly speculative - an extremely risk.


Individuals would tend to escape risk through many ways. Some of them would sacrifice a sum of their monthly salary and some of them would risk losing many more for a proportion of contemplated gains. There is no right or wrong answers of an acceptable degree of risk when one can still claim that through a loss in accepting risk, one's can still gain an experience of a loss. Maybe the best way to analyze and contemplated risk is by understanding one's own need and one's own desire.

References:

Milton Friendman, On Economics - Selected Papers, The University of Chicago Press, Chicago & London, 2006.

Sunday, 20 December 2009

Young Dr. Mahathir and Langkawi

View from the first office of Dr. Mahathir in Langkawi

There was a time when I was baffled thinking about the real connection between Dr. Mahathir and Langkawi. What's so special about this island that really catches the attention of a man born hundreds of miles away [in Alor Setar] from this lonely island separated by the myths and legend of a curse bear upon by the mistakes of its peoples.


The interior

And during my long week stay in Langkawi, I got the answer that I was looking for. The lost chain between a life of a statesman and the lonely secluded island that were much of an alien to civilization. A good friend of mine told an unknown story between Langkawi and Dr. Mahathir Mohamad. How such a man get to be so close with Langkawi and how such an alien place were so special this statesman heart. They said, no man is an island. So does Langkawi and a man named Mahathir Mohamad.


Gone were the days where the young Mahathir Mohamad was a government practitioner. He was young, ambitious and a fresh graduates practicing medics in a government hospital in Alor Setar. The former director of the Alor Setar General Hospital would tell how much hard headed the man was in his young age. Dr. Mahathir sure has his own ideas in his daily practice as a medical doctor and such an attitude would invite a lot of troubles between him and the GH Director. As such he got his first baptism under fire when he fell into disagreement with the former General Hospital Director in Alor Setar as a consequence, he would be be sent to Langkawi. Langkawi those days (1940-1950s) was a place to cast away a hard headed government servants and this can be vouch for the experience of an also the first Prime Minister of Malaysia, Tunku Abdul Rahman when he was an assistant district officer in the state of Kedah.


The first office of young Dr. Mahathir in Langkawi

That was the time when Dr. Mahathir fall in love with the island and saw the true potentials of the Island as a tourist destination. Later in life in the 1980s when he was at the right helm to make a difference, he changed Langkawi and turn it into one of the best tourist destination in the country. The island had changed the man when the man was a lonely island and the man has given back what he could to the place that loved him. When nobody accepted Mahathirism, Langkawi was willing than happy to receive him. And that is the connection I was looking for before this.

Faces of Tun Teddy

Faces of Tun Teddy