Regular features from May 2006 125th Issue

Happy Retirement

We all know in retirement the most important thing to enjoy living is good health both physical and mental

Given that, I tend to agree with Bob Hope when he said “money is not everything but it will do until everything comes along”

The large majority of retirees have a natural instinct to build an investment portfolio that generates a reliable income stream-just like a monthly paycheck they got while working.

Also most retirees view risk as the biggest enemy to their financial quality of life and therefore go for conservative investments like bonds money market funds and bank deposits.

Are they right?

Far be it from me to dictate to any pensioner with a life's experience of saving and spending money. We know that as we get older our waists get bigger and our mind becomes narrower. Many however living in Thailand are spared that ignominy by taking a youthful partner. As they say you're only as old as the women you feel.

So retirees here should be at least willing to listen when I say that for people living off their savings, too much focus on conservative investment can be harmful.

To put it simply when you have a portfolio single-mindedly concentrating on generating a no risk income, will that portfolio be able to grow at a sufficient rate to outplace inflation?

Retired investors should concentrate on structuring a portfolio that meets their long term needs by keeping up with the cost of living.

If you think you have a short lifespan then none of this matters. The reality to day is that with improved health care a large majority of people can expect to live at least twenty years after retirement and perhaps much longer if you have taken early retirement

At the outset at 65 everything may look good but you could immediately start losing purchasing power to inflation.Let me gives you two examples.

Five years ago in Bangkok I rented a beautiful serviced apartment for 60,000 baht a month. Three weeks ago I called to talk to some old Thai friends and discovered that the monthly rental was now 120,000 baht. The apartment was still beautiful but only cosmetic changes had been made. Ten years ago a return ticket with EVA to London from Bangkok was approximately 20,000 Baht. To day it is nearer 40,000 without the oil supplement. I'm sure you can give me many examples of inflation in Thailand .

The reason I am making these points is to encourage you if you have a retirement portfolio to look again. The following example best illustrates what I am trying to say.

You had 500,000 US$ invested for the past 10 years. This has grown in a conservative portfolio at an average annual rate of 5% and that has become your annual income. In today's terms

That would give you an income of just over 80,000 baht a month.

Just think of the purchasing power of that amount 10 years ago compared to today and think of the erosion in purchasing power of the same 80,000 baht in ten years time.

I said earlier that retirees view risk as an enemy but the smart ones know that time tends to eliminate risk and therefore they are prepared to look at some equity investment in their portfolio.

Let me give you an example of the open minded retiree who 10 years ago also had US$500,000 to live on. He consulted a few brokers and eventually came to see that by adding some equity content and having a balanced outlook on investment he could protect himself against inflation.

He still wanted to take 5% per annum from his portfolio so he designed at the outset a portfolio to try and earn 10% p.a. His first years income was 80,000 Baht (for example reasons lets ignore devaluation. Remember it could go the other way)

Having achieved his goals this year his 5%income will amount to US$38,824 p.a.

giving him an income of 126,178 baht a month.

In addition his 500,000 capital is now be worth US$1,077,648

All together a plan for a happy retirement.

Are these extravagant promises? We think not.

Just looking at the last 3 years, Baring's(Yes remember them) European Select +162.20%

JF Thailand +104.74% and Baring's Eastern European ove 5 years 304.62%

How would these funds improve a deposit based portfolio?

It is all down to proper financial planning and understanding risk and how it can be reduced.

The alternative to not taking some risk is that each year your standard of living will slip a little. Is that what you worked and saved for, for all those years?

Appreciate your comments to jerry@swissinvestcenter.net

Book Review

Whose English is it? Asian

Englishes:

Beyond the Canon

By Braj B Kachru

Hong Kong

University Press

$27.95 paperback.

So long as the English language is universal, it will always remain Indian.- Raja Rao

Affirming that English belongs to everyone, Braj B Kachru ranges wide in subject matter and geography, challenging many assumptions that he attributes to residual aspects of colonialism. His approach is kaleidoscopic: instead of proving his assertions with a linear sequence of logic, he shows numerous facets that fit like the pieces of a puzzle.

A native of Kashmir, Kachru holds joint professorships in linguistics and comparative literature at the University of Illinois at Urbana-Champaign, where he has taught for the past four decades. That combination of specialties is the source of both the brilliance and the flaws of this jewel of a book.

The topic is timely, given the large number of countries using the global language, many of them now requiring English classes in elementary schools. Kachru's writing is always lively - and occasionally witty - as he moves gracefully back and forth from details about phonology and lexical sets to abstractions about culture and identity.

His main thesis can be framed by a pair of questions: Is the English language inevitably linked with Western culture? Or is it a tool or instrument that can be applied to local commerce and literature, like adapting the design of an automobile to fit life in Japan or using a violin to play an Indian raga?

Kachru presents striking statistics and a set of concepts in Chapter 2 to support his answer of “yes” to the second question. Kachru claims majority rights for Asian Anglophones on the basis of a startling statistic: a total of 533 million people in China and India “use” English. He explains in depth that the component figure of 200 million English “users” in China and 333 million for India are based on various other studies and projections.

Chapter 3 features a convincing case for a regional variety called South Asian English (SAE), and in addition to mentioning words that English borrowed from India's languages (bungalow, coolie, jungle, etc), he gives an account of the landmark 1835 decision to institute English as the language of colonial education in India, and also discusses the political fortunes of English after independence in 1947. Chapter 4 focuses on Japan, and the fact that English has no institutionalized status there. Indeed, this chapter is almost devoid of examples of so-called “Japanese English” - all of the loan words cited are evidence of English embedded in the Japanese language.

The remaining chapters are devoted to: a broad look at convergence and hybridization of English with local languages; an attack on the “myths” of the English for specific purposes (ESP) industry; a thorough look at the implications of modern writers using Indian English as their medium for literature; a balanced discussion about whether English “kills” endangered languages; a critique of English pedagogy in Asia; and an overview that includes a few pages about colloquial Singaporean English (“Singlish”).

The book points out that the native speaking nations need to become more flexible in both ear and ideology, but it is presumptuous to discount native-speaker expertise as nothing more than a vestige of imperialism. The flip side of Kachru's praise of the “invisible functions” of English in Japan is that the Japanese themselves are deeply appreciative of the invisible skill of an expatriate editor performing a “native check”. In contrast, lack of general knowledge about Western culture leads local translators in such places as Indonesia to make bizarre mistakes, such as rendering the name of the US tabloid National Enquirer as “National Cloud” in a movie subtitle.

It is true that elite Asian Anglophones have a vested interest in the linguistic status quo. I taught with several at universities in Thailand and saw how they looked askance at expatriate teachers who accepted the type of local linguistic innovation that Kachru promotes so fervently. But such conservatives are right to ask, “Shouldn't the variety of English we teach our compatriots be as universally recognizable as possible?”

It was in a spirit of brotherhood that the Bengali Nobelist Rabindranath Tagore, upon arriving at the port of Jakarta in 1927, remarked, “I see India everywhere, but I do not recognize it.” In this light, a native speaking Anglophone in Asia who says “I see English everywhere, but I do not recognize it” should not be presumed arrogant.

Martin Schell is the founder of American Services In Asia, a consulting firm based in his wife's hometown of Klaten, Central Java. He is an Adjunct Faculty Professor of Communications at NYU's Stern School of Business and the author of Developing a Global Perspective for Knowledge Management.

Earth Report

Heart of Borneo

In the past decade, at least 361 new species have been discovered on Borneo, one of the most important centres of biodiversity in the world. And a new report by the World Wildlife Fund finds that there are likely to be thousands of plant and animal species left to discover on the world's third-largest island.

“Borneo's Lost World: Newly Discovered Species on Borneo” shows at least 361 new species have been identified and described on the Asian island between 1994 and 2004: 260 insects, 50 plants, 30 freshwater fish, 7 frogs, 6 lizards, 5 crabs, 2 snakes and a toad.

The report suggests that thousands more have not yet been studied, particularly in the island's 54 million-acre inner region, which is relatively inaccessible and home to some of the most pristine forests left on the island. Borneo is split between the countries of Malaysia, Indonesia and Brunei.

Much of the island's wildlife species - even the largest mammals - have yet to be closely studied by scientists. WWF and other scientists just discovered in 2003 that Borneo's pygmy elephants are genetically distinct from other Asian elephants and are likely a new subspecies. And it wasn't until 2000 that scientists found that Borneo's orang-utan population is a separate species from other orang-utans.

Large areas of Borneo's forest are being rapidly cleared and replaced with tree plantations for rubber, palm oil and timber production. According to the report, the illegal trade in exotic animals is also on the rise, as logging trails and cleared forest open access to more remote areas.

“International consumer demand for wood, rubber and palm oil, used in lots of food and cosmetics, fuels much of the destruction of the Borneo jungle,” said Tom Dillon, director of species conservation at WWF. “All of these useful products can be sustainably produced, and consumers and companies need to tell companies they don't want products created at the expense of wildlife in some of the last pristine rain forests left on Earth.”

An ambitious initiative is under way to conserve the “Heart of Borneo.” WWF is working to assist Borneo's three nations to conserve the area known as the “Heart of Borneo” - a total of 137,000 square miles of equatorial rain forest - through a network of protected areas and sustainably managed forest and through international cooperation led by the governments of Borneo and supported by a global effort.

“Borneo is undoubtedly one of the most important centres of biodiversity in the world,” Dillon said. “Losing the heart of Borneo would be an unacceptable tragedy not only for Borneo and its people, but also for the world. It is really now or never.”

Borneo is one of only two places - the other being Indonesia's Sumatra island - where endangered orang-utans, elephants and rhinos co-exist. Other threatened wildlife in Borneo includes clouded leopards, sun bears and Bornean gibbons; the latter found nowhere else in the world. The island is also home to 10 primate species, more than 350 bird species, 150 reptiles and amphibians and 15,000 plants.

The protection of the heart of Borneo would not only benefit wildlife. It would also help alleviate poverty by increasing water and food security and cultural survival for the people of Borneo. In the long term, it will save the island from the ultimate threat of deforestation and increased impacts from droughts and fires.

Rhinos clinging to survival in the heart of Borneo

The World Wildlife Fund recently released the results of a field survey from the island of Borneo, which found that poaching has significantly reduced Borneo's population of Sumatran rhinos, but a small group continues to survive in the “Heart of Borneo,” a region covered with vast tracts of rain forest.

The survey found evidence of at least 13 rhinos in the interior of the Malaysian state of Sabah in northeast Borneo. It was conducted in 2005 by teams of more than 100 field staff from the Sabah Foundation, the Sabah Wildlife Department, WWF, Sabah Forestry Department, Sabah Parks, S.O.S. Rhino, Kinabatangan Orang-utan Conservation Project, University Malaysia Sabah and Operation Raleigh.

WWF and Malaysian authorities launched rhino protection units to patrol the area where the rhinos were found. “If this band of rhinos is to have a healthy future in Borneo the poaching must be stopped immediately. Their numbers are so small that losing one or two rhinos to a poacher could upset the remaining rhinos' chances of survival,” said Sybille Klenzendorf, lead biologist of WWF's Species Conservation Program. “Conservationists and Sabah government agencies are hopeful that there is a chance to save this group of rhinos and are diligently working to protect them.”

In addition to the 13 rhinos found in the interior of Sabah, a few individuals still survive in other parts of the state that weren't covered in the survey. Previous estimates of rhino numbers had suggested there were 30 to 70 rhinos on the island of Borneo. Populations in other parts of the island are believed to be extinct.

There are believed to be fewer than 300 Sumatran rhinos left in the world and they are considered one of the most endangered rhino species because of the intensity of poaching. Sumatran rhinos are only found in widely scattered areas across peninsular Malaysia, Borneo and the Indonesian island of Sumatra. Rhino numbers globally have been devastated because rhino horn carries a high price on the black market, where it is predominantly sold for use in traditional Asian medicines.

As poaching is such a threat to this species, the survey results were not released until strong protection measures could be put in place in the areas where the rhinos are found. Those security measures were recently installed. WWF and partners recently launched a five-year project called “Rhino Rescue,” which will organize rhino protection units and other activities to deter poaching.

“The results from the survey of Borneo's rhinos are crucial additions to our scientific understanding of the species,” said Dr. Christy Williams, of WWF's Asian rhino program. “We believe this population may be viable and could recover if their habitat is protected and the threat of poaching is eliminated.”

Sabah and the forests of the “Heart of Borneo” still hold huge tracts of continuous natural forests, which are some of the most biologically diverse habitats on Earth, with high numbers of unique animal and plant species. This is one of the world's only two places - the other being Indonesia's Sumatra island - where orang-utans, elephants and rhinos still co-exist and where forests are currently large enough to maintain viable populations.

WWF aims to assist Borneo's three nations (Brunei, Indonesia and Malaysia) to conserve the “Heart of Borneo” - a total of about 84,942 square miles of equatorial rain forest - through a network of protected areas and sustainably managed forest, and through international cooperation led by the Bornean governments and supported by a global effort.

Electronic waste

On 28th September 2005 Greenpeace warned that Thailand faces a looming electronic waste problem, which is compounded by the lack of international legal protection because the country has not ratified the Basel Ban, which prohibits industrialized nations from dumping hazardous materials into third world countries. The booming consumption of electronic and electrical goods - particularly PCs and mobile phones - in Thailand has created a corresponding explosion in electronic scrap containing toxic, persistent chemicals and heavy metals, according to a Greenpeace report entitled “Toxic Tech: Pulling the Plug on Dirty Electronics in Southeast Asia”. Every year, obsolete and discarded electronic products account for 20 to 50 million tons of the world's hazardous waste, 12 million tons of which come from Asia.

“There is no question that the world has benefited immensely from the rapid developments in the electronics industry. But most people remain unaware of the negative health and environmental impacts associated with the disposal of electronic products,” said Beau Baconguis, Greenpeace Toxics Campaigner in Manila. “Many countries, including the Philippines and Thailand, are unprepared to deal with the negative health and environmental impacts brought about by the disposal of large volumes of toxic trash which the electronics industry has generated.”

Thailand imported approximately 28 million mobile phones from 2000 to 2003. In 2003 alone, 42 million mobile phone batteries were imported into the country representing a 43% increase from 2002. In the first quarter of 2005, Thailand had more than 2.6 million computer units or about 15.5 computers for every 100 households, a sharp increase from the previous figure of 11.7 computers per 100 households for the same 2004 period.

In addition, figures from Thai government agencies indicate that between February 2004 and May 2005, more than 265,000 tons of used electronics entered Thailand from countries like Japan, Hong Kong, Korea and Singapore. In 2003, the total e-waste produced within the country was around 58,000 tons. This amount is projected to increase at a rate of 12% each year, and an estimated 3 million pieces of electronic waste will be produced in 2006.

The rate at which these mountains of obsolete electronic products are growing will reach crisis proportions unless electronics corporations that profit from making and selling these devices face up to their responsibilities.

Campaigners have urged the top mobile phone and computer companies worldwide to clean up their act. Companies such as Samsung, Nokia, LG Electronics, Sony and Sony Ericsson have made commitments to eliminate the use of hazardous chemicals such as PVC and brominated flame retardants in the manufacturing of their products. Motorola is the latest to join the list of companies in committing to substitute these harmful substances with safer alternatives.

Other companies, like Dell, IBM/Lenovo, HP, Siemens, Acer, Toshiba, Panasonic, Fujitsu-Siemens and Apple, have so far failed to commit.

“The solution to toxic e-waste is in the hands of manufacturers. Companies must stop using toxic components in their products and establish take-back systems. Thailand and the Philippines should also ratify the Basel Ban. Otherwise, the mountains of e-waste that now exist in China and India may be a reality in our own region sooner than we think,” said Kittikhun Kittiaram, Greenpeace Toxics Campaigner in Bangkok.

local news - Khao Yai National Park

In August 2005, the Khao Yai Forest Complex, near Hua Hin, was awarded UNESCO Natural World Heritage Status, while the Thai government was planning to build two dams within it's boundaries, causing the Head of the Thai World Heritage Committee to suggest that it be put on the “World Heritage Sites in Danger” list. Khao Yai National Park is an important area for both Thailand and the world, and the award was followed by a meeting of involved parties, including WWF, Wild Aid, and Wildlife Fund Thailand; Park Management officials; representatives from the Tourism Authority of Thailand and a number of Tour Operators (domestic and inbound) and the media, as well as the organisers of the workshop, Thailand's Central Investigation Bureau (which overseas the Forestry Police, the Highways Police and the Tourist Police).

Three general areas were looked at; Park Management, Law Enforcement and Tourism management. Several key points were agreed on, with the most notable being; Illegal wildlife trade must be addressed through more effective law enforcement, coupled with education and outreach work, and particular emphasis was placed on the problem of incense wood and wildlife poaching.

Better and clearer planning and policy, with sufficient resources provided to carry them out. The dangers of forest fire, excessive traffic and the introduction of alien species were highlighted, as well as the need to have more inter-agency cooperation and control of future development projects.

A need to educate visitors to the park about appropriate behaviour, particularly the large groups of Thai domestic tourists, who mostly come to drink and enjoy themselves without any real desire to learn about nature. Various measures were discussed to deal with this, including a zoning scheme that could be enforced to allow different types of tourist access to different parts of the park, with different entrance fee structures. .

It was suggested that TAT should instigate a special “World Heritage Guide” qualification and tour guide badge and that tour companies should only use these specialist tour guides.

Superintendent Khun Prawat Wohandee would like a new visitor centre to be located outside the park boundary where sale of local products and provision of other services could help provide income opportunities for local people.

It was also agreed by all that mechanisms have to be developed to control visitor numbers within the carrying capacity especially on Thai public holidays, and that income generated in gate receipts by the park (currently around 38 million baht/year) should not have to be sent to the central office in Bangkok, but should be kept in the area to improve park management and contribute to local livelihood development projects.

Useful Telephone Numbers for Hua Hin

Railway station
032-512 770, 032-511 073

Bus station of Hua Hin
032-511 654, 032-512 543

Bus station of Prachuabkirikhan
032-601 901

Bus station of Pranburi
032-621 443

Hua Hin Hospital
032-520 401

Dog Rescue Center
0-1981 4406

Wild life Rescue Center (Tayang)
032-458 135

Department of Land Cha-am office:
032- 430 846-7

Department of Land Hua Hin office:
032-536 164, 032-512 407

Department of Land Prachuabkirikhan:
032-611 211

Department of Land Pranburi
032-622 199

Local Government (Hua Hin)
032-521 340, 532 471

Local water supply
032-511 677

The Power Board of Hua Hin
032-512 215, 032 513 165

Observer office:
032-531 078

Red Cross.
032-512 567

San Paolo Hospital
032-532 576-85

Polyclinic International
032-516 424, 032-516 425

Shell Cooking Gas
032-511 144, 032- 515 620

The Communication Authority of Thailand
(Hua Hin)
032-511 351

Rotary Club of Hua Hin
0-1916 6637
Meeting every Thursday 8.pm
at Hua Hin Grand Hotel & Plaza

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