Thoughts for 2014 and Happy New Year 2015

It’s the last day of the year 2014 and I open up the newspaper of  The Edge Financial Daily like every other days. Cover page of the FD really seems saddening as the year ending 2014 for Malaysia has been surrounded with many bad news.

(Source: The Edge Financial Daily - 31st December 2014)

There’s some thoughts that came through my mind from a popular Chinese characters “wei-ji” 危 (crisis) 機 (opportunity), i.e. there is a famous saying: in every crisis, although dangers abound, there is also opportunity.

Since there's every opportunity in every time of danger, so here's a summary of my views after relooking (at the points highlighted by FD) for the year of 2014:- 

危 (time of danger)	機 (time of opportunity)
3 Air Disasters (MAS MH3070, MAS MH17, Air Asia QZ8501)	The travel insurance market in Malaysia is under-penetrated compared to other countries. These incidents will lead to higher awareness and the increase of demand for air travel insurance. (Winner: Travel insurance sector)
Worst Floods  Since 1972	Even though insurance company may need to pay out huge claims for the floods, the incident will drive higher pricing for insurance premium. Massive floods in Kelantan also led to loss of infrastructure, homes and cars, there will be need for development and assets replacement. (Winner: Automotive, Insurance and Construction sector)
Crude Oil Plunges 40%	Lower oil price is positive for the household spending leading to higher disposal income and lower inflationary pressure. Also, business with high transportation and energy cost will benefit from lower crude oil price. (Winner: Airlines, Power, and Construction sector)
Ringgit Depreciate 7% against USD	Strengthening USD boost the export industry (with income quoted in USD). (Winner: Glove producer and Shipping sector)
Bank Negara Foreign Reserves dip 11%	There is a need for Government to work on controlling budget deficit. Fundamentals of the economy need to be proven over time and monetary policy stance will remain accommodative.
FBM KLCI fall 5%	FBMKLCI has always been  viewed as trading  at a premium of PER compared to regional market. With the recent correction, market weakness essentially offer opportunities to position for the medium term. Also, foreign fund outflow will reduce the volatility of the stocks market.

Wishing all of you a happy and prosperous new year for 2015, 
let’s count our blessings and embrace for better tomorrow.

May you be blessed with health, wealth and happiness.