Index funds in Malaysia

Since I got into, well, not exactly an argument, but at least a rather heated discussion over this topic on the LYN forums, I thought it might be interesting to write down a summary of my posts there and also what I’ve learned from that thread. Please note that all of this mostly applies only to Malaysia.

Now I’m just a neophyte investor and I don’t make any claims to exceptional knowledge or skill. But I do take care to read through the basics and try to educate myself in whatever it is I’m getting into. One of the most basic and well known ways to invest your money is through the stock market. You can either do it yourself, picking stocks that you personally believe will do well and pray, or you can entrust it to “professional” mutual fund managers and pray. I’m guessing that most working people don’t have the time or inclination to actually do their own research and will opt for the latter. That’s what I did and this is where things get interesting.

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A Book: Incandescence

As for every human born since the Stone Age, as for the ancestors of every member of the Amalgam, there was nothing the universe was capable of doing that the Arkdwellers were not capable of comprehending. They were not mere clever-looking animals, with some hard-wired repertoire of impressive but inextensible skills. With sufficient motivation and freedom from distractions – and perhaps a modest boost in longevity – they could have grasped anything. Apart from the subjectivities of art or language, where everyone needed tweaking to cross the species barriers, there was nothing in the Amalgam’s million-year-old storehouse of knowledge that would have been beyond their reach. That was the ability, the potential in every one of them. There was, however, no drive to realize it: no curiosity, no joy in discovery, no restlessness, no dissatisfaction.

– Greg Egan in Incandescence

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(After thinking about it for a while, I’ve decided to write a discussion of the novel rather than a review. There are already plenty of reviews on it available on the net, most of them probably better than anything I would be able to come up with. For a favourable review, check this out. For a dissenting opinion, read this and maybe Egan’s rather fierce rebuttal to same.)

Cracking open a new Greg Egan novel is always a momentous occasion for me and since Incandescence is the author’s first new novel in six years, you can imagine how great the anticipation must have been. At the end of it however, I’m left with mixed feelings. On the one hand, I can recognize the tremendous amount of work that must have gone into it and on a purely intellectual level, can’t help but be impressed by it. On the other hand, with not much to go on in the way of plot or characters, I had a hard time being emotionally engaged in the book. In that sense, it may be a work of fiction, but it’s more of an extended thought experiment than a novel.

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Facebook makes you dumb.

It’s official because a report from the Ohio State University has concluded from a study of 219 US graduates and undergraduates that students who use Facebook had a significantly lower grade point average than those who did not.

FACEBOOK users may feel socially successful in cyberspace but they are more likely to perform poorly in exams, according to new research into the academic impact of the social networking website.

The majority of students who use Facebook every day are underachieving by as much as an entire grade compared with those who shun the site.

Of course, this is a ridiculous assertion because it basically boils down to the same thing: students are easily distracted from studying. If it weren’t for Facebook, the students would probably be playing video games, or partying or doing something else.

Or check out this alternative explanation from Chris Matyszczyk:

But I have a suspicious and entirely unscientific feeling that all this research may tell us so far is that bookwormy, people-uncomfortable types do well in school tests.

So nothing’s changed, right?

Rethinking democracy

One thing that often irks me is when seemingly reasonable and well-educated people who hold liberal values actually choose to decry democracy. Their argument is that ordinary people are too uneducated, too narrow minded, and generally too stupid to be trusted with the power to ultimately determine the course of government. A good example of this kind of thinking can be found in this post on Fool’s Mountain, found via Jed Yoong:

In the big picture: what should be the purpose of governments? Should government be limited to providing a set of processes and institutions that normatively allocate power within a society or should government take a lead role of establishing a vision of a common good and leading the charge to execute that vision of the common good?

My tendency (and many Chinese on this board) is to believe the second. “So what if you are democratic,” we ‘d say. What is the proof that it guarantees better governance or social stability?

Many of us have reservation about the democratic process because “good” democracy seems to depend on a lot of stars aligning. The media has to be fair and objective to generate good public debates. The people have to be educated enough, well fed enough, and to care enough about the political process to participate in the political process. The people need to also have a healthy sense of social awareness and public duty to exercise their political power judiciously for the good of their country – not just for themselves.

Obviously this is a straw man argument. No proponent of democracy claims that it “guarantees” better governance or social stability. As the blog author himself notes, the very same argument can even more easily be applied towards authoritarian forms of government. Surely by now there should be no need to quote Churchill’s dictum that democracy is the worst form of government, except for all the others.

Still one line criticism of democracy does have some merit, but it applies not to the principle of democracy itself but in how governments choose to implement a system of governance and then call it a democracy. As this book review in The Economist reminds us, simply holding elections doesn’t automatically make your government a democratic one. Elections are a necessary but not a sufficient condition towards the establishment of a healthy democracy. For starters, the elections need to be genuinely free and fair, with all political parties having equal rights to make their appeals and arguments to voters as they see fit. Furthermore, the power of any elected government needs to be constrained by a robust system of  checks and balances.

Finally, I agree with the view that until a country has successfully undergone a peaceful and orderly transition of power from one political party to another at least once to prove that all of mechanisms of government are functioning, that country cannot truly be called a democracy. Unfortunately, this rules out most Southeast Asian countries including Malaysia. One of the ironies of the region is that of all the countries in this part of the world, it is Indonesia, known as one of the longest lived dictatorships in the world under Suharto, that is now considered the healthiest and most exemplary democracy.

Pointless inventions

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I managed to resist the urge to post about this outdoor treadmill when it first got posted on QT3, but the ropeless jumping rope has pushed me over the edge. Basically it seems to be a matched set of two weighted jumping rope handles with fancy electronics embedded to count your jumps and calculate how long you’ve been jumping. Except that it doesn’t have an actual rope connecting the two handles, so you won’t need to worry about tripping, or getting your rhythm wrong, or maintaining proper form. Because, hey, actually jumping with a rope is too hard and simply jumping in place without any equipment is just stupid.

Potholes on the Road to Independence

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In a moment of weakness, I decided that my next big game after finishing Far Cry 2 would be Empire: Total War. Don’t get me wrong, I’ve loved the Total War series ever since the first Medieval and I’m the guy who’d once wrote that I’d buy Total War set in just about any genre. Still, I have to admit that I start way more Total War campaigns than I actually get around to finishing and the standard formula might just be wearing a bit too thin for me. Plus, there’s the fact that the initial releases have always been buggy messes. I knew there was a good reason why I waited for the Gold Edition before buying Medieval 2.

Empire turned out to be far more of a mess than any of the previous releases. I’d had intermittent sound problems, multiple crashes to the desktop within a single play session and even out of memory errors. Some folks have reported corrupted savegames and campaigns that had to be abandoned due to irrecoverable crashes. Granted, the 30 March patch seems to have fixed most of these technical problems, but my first impressions have been irredeemably soured by all this.

Partly due to all the crashes, I’m still playing the “tutorial campaign” called the Road to Independence in which the player guides a fledgling America towards indepedence from the British Empire. One thing that has to be said is that the game is gorgeous. The naval battle portion in particular features ships so richly detailed it’s silly, because you’re unlikely to actually go in for such close-up views more than a handful of times. The strategic portion has been significantly revamped, apparently to make it play more like the Civilization games, a change that I have mixed feelings about and will go into more detail about later. As for the land battles, while it’s cool to see ranks of infantry firing guns at each other and seeing just how far your artillery can hit, the fact that all infantry can now fire missile weapons makes all of the factions a bit too similar to one another.

Anyway, I’m well on my way towards clearing the Brits out of North America completely and then we’ll see how much I like the real meat of the game, the Grand Campaign. Now, which nation should I play first?

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Self-banning from casinos

I’ve been too busy at work to post anything recently so here a bit of regional news that I’ve found amusing. It concerns the new casinos in Singapore which I’m sure everyone has heard of by now. What’s new is that in a move meant to assuage concerns about gamblers becoming addicted and ruining their lives as a result, the government now allows families to ask for their loved ones to be banned from them even before the casinos have opened. The article notes that the Singapore government will soon also allow individuals to apply for a ban on themselves and for third parties to apply to ban others who owe them money.

Now, it’s not like I’m hugely against this but I can’t help but be a bit leery about people who have so little self control that they need to call in the government to do it for them. Still, if this trend hits it off, I’m sure there’s going to be plenty of folks who will be happy to ban their family members from things like buying cigarettes or alcohol. Hey, if you’re fat and blame fast food companies for your predicament, you could even apply to be banned from them so you’ll never be tempted again!

The unexamined life is a life not worth living