The M-Shape Society

In January 2006, Dr. Kenichi Ohmae (大前研一博士), a Japanese management guru, business strategist and writer who is being described as "Mr. Strategy", has written another book named "The Impact of Rising Lower-Middle Class Population in Japan" (ロウアーミドルの冲撃) and being translated by Taiwanese to Chinese edition as "The M-Shape Society" (M 型社会). This book was published just a few months right after economist Atsushi Miura (三浦展) published the best selling "The Emergence of Lower-Class Society" (下流社会 新たな階層集団の出現).

In his book, Dr. Kenichi put up his observation that the structure of Japanese society has emerged from the existing dome shape normal distribution pattern into a twin-peak "M-shape" distribution.

The formation of this M-Shape society is resulting from the sidelining of the middle class into the lower class, while some managed to climb into the upper class. This phenomenon is formed when majority of people in the middle class gradually experienced a deterioration in their living standard.

There may be still remarkable progress in economic development, the GNP may still rise, there may still be economic growth, and the national average salary may still rise, but the rate of inflation and cost of living moves even faster, especially in the globalized world economic whereby more and more resources are gathered and secured by the upper class, while the lower class is starving from limited fund, fuel, energy, food, job, etc.

Dr. Kenichi thrown out 3 questions to the middle class:
1. Do you feel that your mortgage loan is a heavy burden (or you dare not possess any property)?
2. Are you planning to have kids (or you don't even think about getting married)?
3. Are you worried about your kids' future education fund (or you don't want to have kids)?

If you answer a "yes" to any of the 3 questions above, you might have noticed that you're sliding from the middle class towards the lower class, and if you are answering the question in the bracket, you are already in the lower class.

In fact, these questions are fairly related to my article about the HISC₅ of typical middle class person. Middle class persons are required to keep their HISC₅ to be all time well managed and in good order. Life is as if rowing a boat against the water flow, if you don't advance, you will lag behind. Unfortunately, as the worldwide competition is getting tougher and tougher, the "water flow" is getting stronger and stronger, which tear apart the people in the middle, eventually forming the M-Shape society.

One must have plan to get ready for the formation of this M-Shape society, which is evolving all over the world now. In this era of K-economy world, we must get ourselves well equipped with knowledges, skillsets, innovations and productivity at least in 2 areas, which are our career and also our financial management.

Public & Business Financial (PBF) Expo 2008

The 4th Public & Business Financial (PBF) Expo, organized by Money Compass Magazine (精明理财), published by Trans Info Media Sdn Bhd), will be held in Kuala Lumpur Convention Centre Exhibition Hall 2 on this coming 10 & 11 May 2008 9am-6pm.

The expo comprises 100 exhibition booths from financial management and investment sectors, and also seminar & forum by 20 local and oversea financial management speakers. Admission to public is free, and there will be free financial counselling and advice provided to the visitors.

The theme for this expo are:
1: Achieving Financial Freedom For A Brighter Tomorrow
2: Smart Financial Solutions For SME Business

Among the speakers are Dr. Wilson Lin Wei Shian (林伟贤博士), Lim Yuen Seong (林敬祥), Lee Teck Meng (李得民), Dato' Aric Ng Wai Sing (拿督伍伟成), Adrian Yeo Eng Hui (杨应辉), Koong Lin Loong (孔令龙), Dr. Ching Tow Fah (陈道华博士), Jackson Ting (陈芳瑞), Ernest Cheong, Phua Lee Kerk (潘立克), Wong Chai Soon (黄凯顺), Carol Yip (叶凯蓉), Dr. Clement Chiang (郑文元博士), Solon Wang (王志钧) and Benson Tseng (曾志尧).

Click here for more information about this event.

Naza Group founder and CEO passed away

Tan Sri S.M. Nasimuddin S.M. Amin, founder, chairman and chief executive officer of the Naza Group, passed away of lung cancer in California at 1.15am (Malaysian time). He was 54 years old and had been receiving treatment for cancer at a private hospital in Long Beach since January this year.

When he was 21, he had RM80,000 in his bank account which he saved from his remunerations from helping out his contractor father. A year later, he made his first million. It was 1975 and he did it by applying for government-issued Approved Permits (AP) to import cars for resell in the country. He was dubbed the "AP King" in the AP controversy event of 2005.

Naza Group, formed in 1974, has been famous for its automobile business. The group currently holds the Malaysian vehicles franchise for Ferrari, Kia, Peugeot, Brabus, Hamann and Ducati. It also holds the import permits for Mercedes Benz and Mazda vehicles.

Tan Sri Nasimuddin was quoted as saying: “I have always loved cars since my teenage years. That is why I am in this business. My father’s construction business was not my cup of tea.”