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So why am I worried?

One way for us to know whether we are on the right track in our education system (especially in science and social sciences areas that involve research) is to look at the amount R&D carried out.

According to world bank, our R&D % of GDP was around 0.63% in 2010 and our own govt expected that it will hovers around that level in 2011, approx 0.7% and by 2015, the figure will reach 1% as mentioned in the 10th Malaysia Plan.

It is no brainer that having a large R&D has always been the most important element in ensuring that a country progress and continue to progress, off course back by “Productive Citizens”. Just look at this table that clearly shows that countries that are having a large proportion of their GDP in R&D are those that are continually moving forward. In fact, the importance of R&D have been highlighted time and time again in our 9th, 8th, 7th etc Malaysia plan….BUT it is still lacking in its implementation (mind you, all of the plans got its own budget that were spent…where the money gone to?).

Then we have our flip flopping education system that suppose to produce students that will propel the country to a higher ground with their ingenuity and innovativeness. Well, in this country, we don’t need to go to the extent of thinking of how to incorporate the practical aspect of learning through using some basic and intermediate science or social science projects in schools, seriously we don’ need to. Why?…because we barely resolved the basic and fundamental of any learning  and teaching platform i.e. the language, which by the way should have been resolved several decades ago.

Then we have the politicising of schools. How often we see political party flags afloat in the schools compound and how often we see some politicians making political motivated speeches in the schools. To make worst, we have teachers who are more occupied in being involved in politics rather than teaching. So probable, these group of teachers can help out the country by jumping from KLCC towers to see how the impact of the fall can have an effect to ones’ body. At least, they will contribute to research and development, and nation building of the country.

When I was young, the quality of teachers were fantastic (early 80′s). Then along the way, we beginning to see SOME questionable quality teachers. It is mind boggling to note also that on one hand we got students that produces immaculate academic results that sometimes pushes to the border of insanity, however, on the other hand, we are seeing fresh graduates that barely knows how to talk.

If we got students that are superb, brilliant and magnificent, why is it that our ranking in the world best universities is not improving, and no recognition in any meaningful way given by any organisation worth mentioning except from Timbuktu.

When I read an article some years ago from the economist, one paragraph captured my attention :-

“Begin with hiring the best. There is no question that, as one South Korean official put it, “the quality of an education system cannot exceed the quality of its teachers.” Studies in Tennessee and Dallas have shown that, if you take pupils of average ability and give them to teachers deemed in the top fifth of the profession, they end up in the top 10% of student performers; if you give them to teachers from the bottom fifth, they end up at the bottom”

Can we associate the above paragraph to part of our education system?

While I am on it, above is another portion of the 10th Malaysia plan on education. Pretty fantastic, isn’t it. RM140 millin for HPS, RM2 billion for Permata etc. So we can expect we will have high quality education system by 2015, if it is not then who will be responsible? Money will be thrown away and there will be no accountability?

We can continually denied the fact that the major root of the problem in our education system is the non-availability of professional people who manage the system without fear or favour. It is full of unwarranted and embarrassing flip flopping due to maybe intervention from politicians (I am being nice here) that are only care for their political survival in expense of the ordinary people.

The major cause of our country’s lacking behind in increasing number of areas such as R&D, education etc, in comparison to our neighbours is simply due to no strong will to do the job i.e. personal interest overidding everything else. If only  relevant authority do their job and  corruption level does not goes up , then we will see the funds and efforts used can be place where it counts most i.e. R&D and proper well planned education system that devoid of any fear and favours. Then the children can have better and exciting classes to go to with hair dryers, ping pong balls, plastic bags etc to experiment, with well qualified teachers and supervisors.

OK , I  have rambled enough……….for now.

Came across this video recently and other than quite informative and interesting, it also makes me worried.

You see, these science tricks are simple experiment and some of it easy to demonstrate. I am also prettty sure that some of it are being used in many of the western/developed countries’ primary and secondary classes to stir up interest among sudents in research, technology and innovativeness.

Ok, let me try to explain why I am worried after wathcing the video above.

There are many theories in education that studies the best way children or even mature students learned best. One of these theories called constructivism and it  “….argues that humans generate knowledge and meaning from an interaction between their experiences and their ideas”.

Off course there are many other theories with their own relevant research and proves that their theories are better (JUST LIKE ANY OTHER FINANCIAL WIZARDS AND ANALYSTS) . However, according to Howard Gardner, one of the foremost authority in development psychologist (those who study perasaan, citarasa dan pandangan manusia dari kecil ke dewasa), describes eight different kinds of intelligence (one way to explain it, is how we learn best) :

• Visual: Good with art and design
• Linguistic: Good with words
• Logical: Good with numbers and math
• Bodily: Good at action, movement and sports
• Musical: Good with music, tone and rhythm
• Interpersonal: Good at communicating with others
• Intrapersonal: Good at self-reflection
• Naturalistic: Good at appreciating the world and nature

Human being can have more than one intelligence characteristic but if we observe above one thing for sure almost all relates to some form of interaction with other human being or other physical items. Meaning, we tends to learn more when we complement our readings with some physical activities like elemenary research, discussing with fellow learners, drawing it on a piece of paper etc. In fact a paper from International Academy of Education, states that it is more effective if students learn“….to connect the school to real-life situations, and to focus on understanding and thinking rather than on memorization, drill and practice.” In fact there are many other findings that have the same conclusion.

So, back to the reason why I am worried. Tommorow then…

It is a known fact that to invest we need to consider some variables as stated in the heading of this post.

Risk is related to our acceptance of possible lost that we might incurred if we take some projects or investment decisions. However, this risk is closely related to the potential return that we might get. Thus, the statement of high risk high return comes into the picture. Can you get a return without having an iota of risk. Nope!. The minimum issue of risk is default, i.e. the probability someone or an organisation/entity on not delivering what they promised. The case of Latin American Debt Crisis come into mind of how even countries can go against what they promised, then what about profit oriented organisations.

Off course, I am not saying that the current debt crisis has any resemblence to those that happened in Latin American Countries but what I am saying is risk is something that you can’t avoid in totality.

You can reduce the risk and thus the return will be lower than what other investment platform will gives (return) or take (loss).

Ok, lets take EPF returns. On average they have been giving 5.5% return for the past 10 years. Off course that return if we take into account the inflationary rate of 3.5%(official one lah….if not worse off), the actual return will be 2% only per annum.  So some people are willing to continue letting their saving in this form (through monthly obligatory deduction that give a 2% real return) rather than taking an additional risk of putting into unit trust investment that have a past perfomance track record of 10% on average (or 6.5% real return). This is not taking into accoutn the compounding affects. It is find if you are happy with 2% actual return and confident that you will be able to ride your old age retirement by letting your saving in EPF alone.

So the association of risk and return in this case is that EPF contributors who are willing to invest in unit trust using their epf are willing to take an additional risk in getting a potential 5% additional return i.e. 10%.

Then we have the element of cost and time to take into consideration. The main things that differentiate between one strategy to another are involve the manner the cost and time blended in with the investment schemes.

For example, the longer time we have the lower cost that we will be exposed to. Why?

Simply because with time we can disburse our investment more cautiously and thus reduces the possibility of making mistakes. Of course we can’t avoid mistakes or avoid risk in totality but we can reduce the occurances and with time on our side and patience, the probability of our investment giving us the return that we want and possibly more will be of higher chance to be achieved.

On how these time and cost will give the edge in getting the potential desirable returns, well, it is a trade secret only for my clients.:)

As can be seen throughout last week, Bursa went berzek (as usual).

Looking at the chart below you can see that during the upswing, the market actually was supported by either the foreign institutions that I believe is to make mostly quick money when retailers enter (off course at our expense) , or either by the large institutions who want to support the market cos of the impending election, to make last gasp of profit before closing end of the year account (window dressing) or due to averaging factors of their existing portfolio.(the highlighted portion)

Table below is taken from http://bursatradestatistics.blogspot.com/, supports the argument that last week’s market was supported by foreign institutions (not necessarily good news, hot money).

So to invest in stock market does involve a lot of analysis, higher risk, a lot of time to scan through the market to find the possible opportunities and definitely need a consistent and high interest. Furthermore, to invest you also need to know things like what’s happening in the domestic, regional and world market such as what’s contemporary happenings in European Countries that will affect tomorrow’s news and trend.

The easier and coolest way to have a better opportunity to consistently in making good return is through Unit Trust as you don’t necessarily need to know all these things as you transfer the burden to your agent like me , because I got the time.