1. Venture Capital Funding
article that PNB (Permodalan Nasional Berhad) order to all private venture
capital funding in the country to boost innovation and transform it for
upcoming year 2020 that was targeted by Prime Minister was high-income nation.
Venture capital funding are very important to the small company. It is become
an addition for the company to boost their performance for increase the
productivity and efficiency for the company with the fund that provide by
venture capital financial institution or government.
As the investor of
funding venture capital, it is need some research of the small company whether
the small company have good future or not. It is depends on what sector the
company run. If the company run the in technology sector, then, what kind of
technology the company doing. After that, the financial of position of company
need some analyse, if good, we will allocate some fund venture of capital for
boots more performance in that company. With the election will be in March
2018, we think we need to play safe for investment. Beginning the election, the
market will become uncertainty while some small company also will be effect.
In the next
article said that the Prime Minister said that the venture capital companies or
individual will be given a tax deduction to the amount of their investment
which is will be limited to maximum of RM 20 million per year. So, based on
statement that given by Prime Minister, it will be more advantage to us for
investing in capital venture funding to strive for high-income nation in year
that, in the NST TEAM article also said that investor from major institution
will allocate RM 1 billion for venture capital investment in selected sector.
It is means financial institution will help the company boost more performance
while buy some equipments. In case we as private investor venture capital
funding in the Ali Sdn. Bhd. then, financial institution also venture capital
funding in the Ali Sdn Bhd. It will be more advantage for us to get higher
return in the future because Ali Sdn Bhd was have high return of income because
helped by us and financial institution in capital venture fund.
Next, NST TEAM
also said that “minimum of investment limit in a venture company will be reduce
from 70% to 50% from 2018 to year 2022”. It also will receive high demand for
investing in the venture capital companies. Then, it would be a lot of investor
will going invest in venture capital in companies. While other investment
instrument will be supply. Which means that the demand on other investment
instrument such as common stock and preferred stock will be decrease.
based on the article it would be advantage for the investor to fund in the
venture capital in companies. It is because most of the investment trust such
as common stock, derivative and forex investment have uncertainty market trend.
So, it better for them going to invest in venture capital.
2. Commodity Investment
Based on the part of
highlighted from the original article taken from The Edge Market Malaysia, it
is clearly discussed about the correlation between the US Federal Interest Rate
with the gold price.
Some popular opinion
is that interest rate hikes have a bearish effect on gold prices, the effect
that an interest rate increase has on gold, since there is actually little
solid correlation between interest rates and gold prices. Rising interest rates
may even have a bullish effect on gold prices.
As the Federal
Reserve continues to slowly normalizing interest rates, many investors believe
that higher interest rates will pressure gold prices downward. Many investors
and market analysts believe that, as rising interest rates make bonds and other
fixed income investments more attractive, money will flow into higher-yielding
investments, such as bonds and money market funds, and out of gold, which
offers no yield at all.
From the point
above, it is extracted that Gold price will dragged down not because of the
interest rate itself but it is because of a substitute investment tools. Demand
on gold will be distracted by fixed income investment which are bond etc. Bond
have much more lower risk compared to gold investment and it open a bigger windows
of opportunity for profit as Interest rate increase and the return of
Based on the article
once more, the corporate news website forecasted that the interest rate will be
increased 3 more times during 2018. It is a clearly a point of view that it is
a bad time to buy a buy and hold a stock of gold as it the possibilities for
the price keep dropping for year 2018 is high.
Based on diagram
1.0, it shows a gold features index. It is proved that the interest rate really
do gives a negative impact on gold price. Based on technical analysis, from a
rough view it is a downtrend in the price movement since middle of September
till now. In the early December, the price penetrate the support which is bad
as it shows a sign of continuous downtrend.
As refer to the statement by Aslam
from the article Gold holds near five-month low before Fed rate decision from
the edge market that when the inflation happen the dollar index will go down
thus increase the value of the gold indirectly because the gold are being value
by the U.S currency. So from here we can see that the gold price really rely on
the dollar index. From the statistic website it show the projection of the U.S
inflation will go down in 2018 thus this is not a very good sign for the price
of the gold. This will affected the gold price by reduce of the inflation of
the U.S, the currency will go up and the value of the gold will go down because
when the USD is increase, the less money will be used to purchase the gold.
Diagram 2.0 above
show the projection of the inflation rate of the U.S from the year 2010 until
2022. As we know that the inflation and the gold price is moving almost
simultaneously but both of this inflation rate and the gold price are vice
versa from the currency of the U.S dollar and the currency is announce by the
As we can see from
the article that the feds is trying to increase the interest rate 3 time more
in 2018 than the current interest rate that have been increase 2 times from the
previous year. This indicate the inflation will go down and also cause the
price of the gold also to reduce. As shown in diagram 2.0 that they forecast
the inflation for 2018 will decrease because the feds are planning to increase
the interest rate.
Above is the gold
price from the year 2015 until current. As we can see at 2015 the inflation
rate is only 0.12% and the price of the gold went down drastically and start to
recover after the inflation is increase to 1.28%. But as for now the forecast
inflation for 2018 will be decrease to 0.27% from the previous year 2017 that
is 2.65%, this will make the gold price to go even lower than it is now. By now
the gold price is already at the point of the support. For an investor it’s
better to wait for the price of the gold to stable as we know that next year
the gold might break its support.
Extracted from the
article, Saxo Bank Hansen already make the study on the technical analysis by
using a momentum indicator that is the Fibonacci indicator. He stated that the
real support for now is USD 1,240.00 if the price go beyond the support it will
push the price even lower. From the chart in diagram 1.0 at 11th
December 2017 the price of the gold fell below the support and then it got push
up and closed above the opening price.
From above diagram
3.0 we can indicate when the chart is forming a hammer candle pattern as happen
at 12th December 2017, the central bank of America try to increase
the price of the gold on that day. This is a good sign because the price did
not break the support but it is almost at the support and make it more
difficult to forecast the future price.
From my opinion it’s
better for the investor to hold their purchase in gold because the price might
go even lower next year. With the increasing interest rate and the decrease of
inflation in 2018. Moreover the gold price is at uncertainty weather it will go
up or break the support.
Article of Venture Capital Funding
i. KUALA LUMPUR, May
25 — Permodalan Nasional Bhd (PNB) is urging for more private venture
capital funding in the country to boost innovation and transformation towards
becoming a high-income nation by 2020.
Group chairman Tan Sri Abdul Wahid Omar
said currently in Malaysia, the majority of such funding came from government
As nearly 70 per cent of venture capital
funding is currently derived from the government, the role of the private
sector is very little in this regard, in comparison to the United States where
over 80 per cent of such funding would actually come from private institutions,
he pointed out.
“The idea here is to get more of the
private sector to allocate a portion of their wealth to start investing in
start-ups, new ventures and venture capital funding,” Abdul Wahid said.
He was speaking to reporters after
launching a book entitled ‘Malaysia at a Crossroads: Diagnosing the Constraints
to High Income Status’ at the Growth Diagnostics Forum organised by PNB
Research Institute (PNBRI ) here today.
Abdul Wahid also observed a very active
angel investor community in the US which was lacking in Malaysia.
“We know some tycoons are doing it on
the quiet. But we like to see more of these high-net- worth inviduals to come
on board to make investment in the startups and Small and Medium Enterprises,”
Meanwhile, Abdul Wahid highlighted the
10 recommendations stated in the book which included upgrading risk capital and
more private capital funding.
The book further recommends greater regional and
state-level approaches to understanding growth drivers to ensure transformation
is felt at the district and local levels.
PNB will work with a few parties to see
how these recommendations could be implemented, he added.
The Growth Diagnostics study was
commissioned by PNBRI and led by Professor Datuk Seri Dr Noor Azlan Ghazali,
vice-chancellor of Universiti Kebangsaan Malaysia (UKM), who is also a member
of PNBRI and Amanah Saham Nasional Board, together with Mpumelelo Nxumalo,
economist-in-residence in the vice-chansellor’s office at UKM, and lead
consultant of Bright Vision Consulting Sdn Bhd, Jared Glanz-Berger. — Bernama
Read more at http://www.themalaymailonline.com/money/article/pnb-urging-for-more-private-venture-capital-funding#MzWIsvok2bcQI35z.99
ii. By NST TEAM – October 27, 2017 @ 5:17pm
KUALA LUMPUR: The government will assist
startups that are struggling to raise capital and gain access to a wider
market, said Prime Minister Datuk Seri Najib Razak today.
Najib, who is also
finance minister, said the 2018 Budget will introduce a slew of initiatives to
encourage venture capital activities.
He said investors
from major institutions will allocate RM1 billion for venture capital
investments in selected sectors, adding that this effort will be coordinated by
the Securities Commission.
exemption, he added, will be widened to include management fees and performance
fees, which are accepted by venture capital management companies for tax
assessment running from 2018 to 2022.
He said the minimum
investment limit in a venture company will be reduced from 70 per cent to 50
per cent from 2018 to 2022 to assist venture capital companies in investing in
a venture capital firm.
Najib also said
companies or individuals investing in venture capital companies will be given a
tax deduction equivalent to the amount of their investments, which will be
limited to a maximum of RM20 million ringgit per year.
“Last but not least, income tax exemptions equivalent to the amount of
investments by angel investors in venture companies will be extended until 31 December
Article of Commodity Investment
Gold holds near five-month low before Fed rate
“LONDON/BENGALURU (Dec 13): Gold prices
on Wednesday held near their lowest
in nearly five months as investors looked ahead to an expected U.S. interest rate
increase and clues from the U.S. Federal Reserve on its plans for further rises next year.”
“The Fed’s policy statement and latest
economic projections are due at 1900 GMT and Chair Janet Yellen will give a
news conference half an hour later, her last before her four-year term ends
early next year.”
“The Fed has increased rates twice this
year and is expected to
raise them three more times in 2018.”
“Gold is sensitive to rising rates because they
push up bond yields, reducing the appeal of non-yielding gold. They also tend
to boost the dollar, making gold more expensive for holders of other
Fed comes out of the gate with more hawkish views on the economy and sees inflation improving, it
could impact the dollar index. Any further strength in the dollar index would
push the gold price lower,” Aslam said.
weakened on Wednesday, after a Democrat won a U.S. Senate seat in Alabama,
reducing the Republican majority and likely making it harder for them to enact
tax cuts that would stimulate the economy.
technical side, fibonacci
support for gold was at around US$1,240 and a close below that level could
trigger further falls, said Saxo Bank’s Hansen.
ScotiaMocatta said momentum indicators showed gold could fall toward its July low of US$1,204.90.