The economist define ’stagflation’ as a situation when high inflation meets stagnant economy or recession. I suppose we could agree that we are indeed experiencing a period of inflation mainly due to the increasing energy and food prices.  Most countries are reporting growth in GDP, but I wonder what are the real GDP growth, GDP after adjustment for inflation?

Is our current world economic situation similar to the ‘oil shock’ in the 70’s? I reckon the current global situation is quite different from the one that happened then. Mainly because it was then a ’shock’, a sudden increase in oil prices due to political instability that have affected the oil supply.

Currently, profits from the increase in oil revenue seems to have gone back to the world economy, look at the massive building in the U.A.E., massive investments in the US and all over the world by the oil rich nations. These countries will have to invest their money to ensure wealth will continue to grow even after their oil in the ground has been depleted. It is a matter of national security. I suppose they are very happy now that price of oil is unpresedentedly high.

Increase demand for investment instruments has helped bouyed the Exchanges around the world. High demand for gold and other world commodities as a safe investment haven plus demand due to the rising of China and India have all contributed to the positive impact the countries producing such such goods and hence the world economy.

Chinese economic conditions are somewhat like a ‘big faucet small drain hole bath tub condition’. Lots of money moving in through export revenue and relatively little goes out except for purchase of raw materials. widgets are usually not imported into China, manufacturer set up factories for local market as well as overseas market. The side effect now is, this excess liquidity sloshing around in the economy has caused high inflation, escalating properties and stock prices. In my opinion, China will have to move quickly, to spread these excess richness over to the west, creating more jobs and increase the living standards over there. This will in turn increase the economic capacity and at the same time improve social stability.  I am sure they are doing it right now.

India has so much to offer. In fact I believe India is involved in areas so much more sophisticate than China, such as software engineering, human resource outsourcing activities. To quote a good example is Google and Microsoft. Companies in the information technology business can in a short span of time, grow to a size larger than some countries endowed with natural resources, or companies with decades of good business decisions.

Imagine or rather it is already a fact, if only 10% of India and China population have risen to the rank of middle class, this will translate into more than 300million. A figure equivalent to the population of USA. See the demand ? This also means that the current rise in prices has a lot got to do with demand and not ’sudden scarcity’.

Actually I am more concern about our country. Yes our prices are rising, but is there increase in FDI especially people from oil rich country? Yes they have a lot of money and are interested to invest here; I think the problem is choices are limited and some of the policies can be quite discouraging. Our poitical climate is still a bit uncertain, too much of witch hunting now. I would term it as growing pain. A sign that our country is coming of age, in terms of political maturity. It is a necessary process. Lets hope it will be quick.

My gut feeling is, Malaysians are quite an unique lot of people. Many of us are global thinkers, highly adaptive, entreprising and multi talented. One of our competitive edge is, we come from a multi racial environment. Last week an NZ businessman told me, if you are a MLM company and looking to penetrate Asia, the first stop should be Malaysia. Malaysians are generally very entreprising, you can see them doing deals,even late at night in mamak stalls. The next thing you know, you have downlines in China, India and Indonesia …..and other English speaking countries as well.

Our country has produced so many famous gloabal citizens with standards beyond our shores such as ;

Robert Kuok, Tan Sri Syed Mokhtar Al-Bukhary (Forbes Asia top philanderer), Petronas (presence in 26 countries) AirAsia (Now all Asians can fly), Resorts World (World cruise biz), YTL, Datuk Jimmy Choo, Datuk Michele Yeoh, Fish Leong, Guang Liang, Zang Toi, Sheila Majid, Badminton champions, Karamjit Singh,Bernard Chandran, Nicole Davids, Lillian Too, Ling Tan (supermodel) …just to name a few

This is what I call speedy get to know you and I will get you some business in the next minute game. Serious accelerated networking….. See the effect when more than 500 people of 26 nationalities play this game…the energy is awesome! Did I get any leads for insurance planning from this convention ? You bet!

BNI KL08 S.N.A.P.

According to Dr. Ivan Misner, the results from the famous 6 degree of separation research actually showed that the theory is not true. This is because the sample test is too small and only less than 30% of the letters actually get to the intended person. The rest of the letters went astray.

Based on my own experience, every circle of friends I know tend to stop at the first layer, unless they also belong to other groups of friends that I have. Insurance agents are quite good at moving on to the next level of connection through referrals.

For example, in year 2002, an old high school mate of mine got a wholelife 36 illnesses policy from me, and he introduced me to his then girlfriend (Investment-linked with medical card) and also his parents (Wholelife non-par insurance). His parents in turn introduced me to their 3 other younger children and each one of them as they graduated from university bought a policy from me (Wholelife 36 illnesses policies). The second child referred me to his bosses (Business Value Protection Plan), and colleagues (Staff loyaty program). The ex-girlfriend referred me to her sister (GreatLady Program), who in turn referred me to her sister’s boyfriend (Fire, Burglary, Product Liability,Personal Accident for his company). The boyfriend referred his parents to me, and while I was explaining the benefits of the medical policy to them, the sister was there, and this afternoon she called up to set up an appoinment with her husband to talk about child education plan…… Next week I am also seeing my old high school mate’s current girlfriend.

Isn’t life as an insurance planner interesting ?