This Week in Finance 2018–05–13

By Scott Douglas Jacobsen

“Malaysia’s new finance minister is seen as a safe pair of hands as he takes on the immense task of bringing down debt while scrapping a consumption tax that was key to Prime Minister Mahathir Mohamad’s unexpected election win last week.

With investors bracing for a fallout when financial markets reopen on Monday, 92-year-old Mahathir moved quickly to name top cabinet posts on the weekend. He picked Lim Guan Eng as finance minister, and brought back some old names, like former central bank Governor Zeti Akhtar Aziz, to an economic advisory board.

Lim, who is secretary general of the mostly ethnic Chinese Democratic Action Party, was chief minister of the northern Penang state before the election and is a trained accountant. Penang is the country’s second-smallest state, but one of the largest contributors to the economy and home to foreign electronics companies, including Intel Corp.”

Source: https://www.bloomberg.com/news/articles/2018-05-13/malaysia-finance-minister-seen-as-safe-pick-as-budget-risks-rise.

“SHANGHAI, May 13 (Xinhua) — Shanghai on Sunday announced new measures to open wider its finance businesses, in a bid to develop itself into an international finance center.

In the near future, the city will further open up banking, securities, and insurance sectors, according to the municipal finance authority.

Foreign-funded banks will be encouraged to set up both branches and subsidiaries in Shanghai. The city will also support establishment of securities, fund, and futures companies with majority ownership by foreign capital.

The scope of Shanghai-based foreign-funded insurance companies will be expanded.

The financial market will open wider. For example, the city will support overseas investors to invest in its securities market and overseas innovative enterprises will be allowed to issue Chinese Depository Receipt in Shanghai.”

Source: http://www.xinhuanet.com/english/2018-05/14/c_137176322.htm.

“In business, it’s common to hear that spending money is often the key to making more of it — but what if you want to save money? When it comes to the energy upgrades and your bottom line, spending and saving often go hand in hand, as many of the upgrades come with significant price tags.

For that reason, many business owners are hesitant about making those investments and question whether immediate demands on capital are worth the anticipated long-term savings. Even if the investments will yield significant savings in the future, determining how to finance them in the now can be difficult.

If energy efficiency upgrades are on your radar, you probably have a lot of questions with “how do I pay for this?” vying for the lead. Fortunately, with the proper analysis and knowledge of available resources, you’ll find that energy updates may be well within your grasp.”

Source: https://www.forbes.com/sites/forbestechcouncil/2018/05/11/business-energy-efficiency-upgrades-four-tips-to-help-you-finance/#33c62e8b1e0c.

“KUALA LUMPUR — Malaysian Prime Minister Mahathir Mohamad on Saturday appointed three ministers to key portfolios along with a council of elders in the interim, as he grapples with the right candidates to form a full government three days after winning the election.

The new lineup, made up of leaders from his four-party coalition, includes Lim Guan Eng, who will assume the finance portfolio. Lim, an accountant by training, had been the Chief Minister of Penang, an industrial state, since 2008.

The home affairs and defense posts went to Muhyiddin Yassin and Mohammad Sabu respectively. Muhyiddin, a confidant of Mahathir, was the deputy prime minister sacked by former leader Najib Razak for demanding information about the financial scandals at state fund 1Malaysia Development Berhad.

Citing his alliance’s lack of experience in governing, Mahathir has formed a “Group of Eminent Persons” comprising retired public and corporate figures. They are former Finance Minister Daim Zainuddin; former central bank governor Zeti Aziz; former head of state oil company Petroliam Nasional (Petronas) Hassan Marican; Hong Kong-based Kerry Properties founder Robert Kuok; and economist Jomo Kwame Sundaram.”

Source: https://asia.nikkei.com/Politics/Malaysia-election/Mahathir-names-key-ministers-provincial-leader-to-head-finance.

“The world of business and financial services is not as clear-cut as it once was; industries are merging and it’s become necessary to broaden one’s mindset to keep up to date with developments within the industry, while still retaining one’s specialisation.

Case in point are the trendy keywords of fintech and regtech — terms newly coined by amalgamating finance and tech and regulation and tech.

Technology is prevalent in most industries so the topics of fintech and regtech are of utmost importance to those working in financial services. Regtech, it can be said, is reshaping the supervisor market participant relationship. New technologies, Cloud-based services, crowdfunding, fintech using AI and neural networks, Blockchain and the like are rapidly changing the economics and landscape of regulated industries, including banking and finance.

New products, services and non-industry players are radically changing the nature of the markets and the relationship between supervisors and market participants, therefore regulators have to adapt and innovate (along with the incumbents), avoiding regulatory barriers to new competitive and disruptive forces that promise greater financial inclusion and financial depth.

Fintech is also the underlying basis for the latest episode that has taken the world by storm — cryptocurrencies. The question around this new financial trend and its cohorts of Blockchain & Initial Coin Offerings, is, are they to be encouraged or suppressed?”

Source: https://www.timesofmalta.com/articles/view/20180513/business-news/Finance-without-frontiers.678954.

Recent Royal Commission has shown Australians how rotten the country’s financial advice sector is.

Australians have learned over the past few weeks that our A$2.6 trillion (NZ$2.84 trillion) of retirement savings has been left in the hands of the dishonest and the incompetent.

And the corporate policeman has done nothing to stop it.

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, to use its full title, has revealed just how rotten the financial advice sector in Australia really is.

Take the case of “celebrity” financial planner Sam Henderson and his client Donna McKenna.”

Source: https://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12&objectid=12050618.

“WASHINGTON — The BUILD Act, the bill that would create a new United States development finance corporation, moved closer to passage this week, with the House Foreign Affairs Committee approving the bill with some changes, and the Senate Committee on Foreign Relations holding a hearing to discuss the legislation.

In the markup, members of the committee sought to address some of the concerns about the legislation, including that the new development finance corporation did not have a strong enough development mandate, that it lacked sufficient linkages to the U.S. Agency for International Development, and that its social, human rights, and environmental safeguards, measurement, and transparency were not clearly spelled out. Several of those issues were also raised at the Senate hearing.

Members of House Foreign Affairs Committee congratulated one another about the bipartisan nature of the bill. It was approved by the committee, and committee chairman Rep. Ed Royce, from California, will recommend that it is considered under suspension of the rules, which is an expedited process that limits debate in the full House of Representatives, doesn’t allow any further amendments, and requires a two-thirds majority to pass. It is a procedure used to expedite legislation that has bipartisan support.”

Source: https://www.devex.com/news/development-finance-bill-moves-forward-in-legislative-process-92728.

(Updated September 28, 2016)

Scott Douglas Jacobsen founded In-Sight: Independent Interview-Based Journal and In-Sight Publishing. He authored/co-authored some e-books, free or low-cost. If you want to contact Scott: Scott.D.Jacobsen@Gmail.com, Scott.Jacobsen@TrustedClothes.Com, Scott@ConatusNews.Com, scott.jacobsen@probc.ca, Scott@Karmik.Ca.

He is a Moral Courage Webmaster and Outreach Specialist (Fall, 2016) at the UCI Interdisciplinary Center for the Scientific Study of Ethics and Morality (Ethics Center), Interview Columnist for Conatus News, Writer and Executive Administrator for Trusted Clothes, Interview Columnist for Basic Income Earth Network (BIEN), Councillor for the Athabasca University Student Union, Member of the Learning Analytics Research Group, writer for The Voice Magazine, Your Political Party of BC, ProBC, Marijuana Party of Canada, Fresh Start Recovery Centre, Harvest House Ministries, and Little Footprints Big Steps International Development Organization, Editor and Proofreader for Alfred Yi Zhang Photography, Community Journalist/Blogger for Gordon Neighbourhood House, Member-at-Large, Member of the Outreach Committee, the Finance & Fundraising Committee, and the Special Projects & Political Advocacy Committee, and Writer for Canadian Students for Sensible Drug Policy, Member of the Lifespan Cognition Psychology Lab and IMAGe Psychology Lab, Collaborator with Dr. Farhad Dastur in creation of the CriticalThinkingWiki, Board Member, and Foundation Volunteer Committee Member for the Fraser Valley Health Care Foundation, and Independent Landscaper.

He was a Francisco Ayala Scholar at the UCI Ethics Center, Member of the Psychometric Society Graduate Student Committee, Special Advisor and Writer for ECOSOC at NWMUN, Writer for TransplantFirstAcademy and ProActive Path, Member of AT-CURA Psychology Lab, Contributor for a student policy review, worked with Manahel Thabet on numerous initiatives, Student Member of the Ad–Hoc Executive Compensation Review Committee for the Athabasca University Student Union, Volunteer and Writer for British Columbia Psychological Association, Community Member of the KPU Choir (even performed with them alongside the Vancouver Symphony Orchestra), Delegate at Harvard World MUN, NWMUN, UBC MUN, and Long Beach Intercollegiate MUN, and Writer and Member of the Communications Committee for The PIPE UP Network.

He published in American Enterprise Institute, Annaborgia, Conatus News, Earth Skin & Eden, Fresh Start Recovery Centre, Gordon Neighbourhood House, Huffington Post, In-Sight: Independent Interview-Based Journal, Jolly Dragons, Kwantlen Polytechnic University Psychology Department, La Petite Mort, Learning Analytics Research Group, Lifespan Cognition Psychology Lab, Lost in Samara, Marijuana Party of Canada, MomMandy, Noesis: The Journal of the Mega Society, Piece of Mind, Production Mode, Synapse, TeenFinancial, The Peak, The Ubyssey, The Voice Magazine, Transformative Dialogues, Treasure Box Kids, Trusted Clothes.

He is a Moral Courage Webmaster and Outreach Specialist (Fall, 2016) at the UCI Interdisciplinary Center for the Scientific Study of Ethics and Morality (Ethics Center), Interview Columnist for Conatus News, Writer and Executive Administrator for Trusted Clothes, Interview Columnist for Basic Income Earth Network (BIEN), Chair of Social Media for the Almas Jiwani Foundation, Councillor for the Athabasca University Student Union, Member of the Learning Analytics Research Group, writer for The Voice Magazine, Your Political Party of BC, ProBC, Marijuana Party of Canada, Fresh Start Recovery Centre, Harvest House Ministries, and Little Footprints Big Steps International Development Organization, Editor and Proofreader for Alfred Yi Zhang Photography, Community Journalist/Blogger for Gordon Neighbourhood House, Member-at-Large, Member of the Outreach Committee, the Finance & Fundraising Committee, and the Special Projects & Political Advocacy Committee, and Writer for Canadian Students for Sensible Drug Policy, Member of the Lifespan Cognition Psychology Lab and IMAGe Psychology Lab, Collaborator with Dr. Farhad Dastur in creation of the CriticalThinkingWiki, Board Member, and Foundation Volunteer Committee Member for the Fraser Valley Health Care Foundation, and Independent Landscaper.

He was a Francisco Ayala Scholar at the UCI Ethics Center, Member of the Psychometric Society Graduate Student Committee, Special Advisor and Writer for ECOSOC at NWMUN, Writer for TransplantFirstAcademy and ProActive Path, Member of AT-CURA Psychology Lab, Contributor for a student policy review, Vice President of Outreach for the Almas Jiwani Foundation, worked with Manahel Thabet on numerous initiatives, Student Member of the Ad–Hoc Executive Compensation Review Committee for the Athabasca University Student Union, Volunteer and Writer for British Columbia Psychological Association, Community Member of the KPU Choir (even performed with them alongside the Vancouver Symphony Orchestra), Delegate at Harvard World MUN, NWMUN, UBC MUN, and Long Beach Intercollegiate MUN, and Writer and Member of the Communications Committee for The PIPE UP Network.

He published in American Enterprise Institute, Annaborgia, Conatus News, Earth Skin & Eden, Fresh Start Recovery Centre, Gordon Neighbourhood House, Huffington Post, In-Sight: Independent Interview-Based Journal, Jolly Dragons, Kwantlen Polytechnic University Psychology Department, La Petite Mort, Learning Analytics Research Group, Lifespan Cognition Psychology Lab, Lost in Samara, Marijuana Party of Canada, MomMandy, Noesis: The Journal of the Mega Society, Piece of Mind, Production Mode, Synapse, TeenFinancial, The Peak, The Ubyssey, The Voice Magazine, Transformative Dialogues, Treasure Box Kids, Trusted Clothes.

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Scott Douglas Jacobsen

Scott Douglas Jacobsen is the Founder of In-Sight Publishing. Jacobsen supports science and human rights. Website: www.in-sightpublishing.com