Business
Finance: Cash is always king

PHUKET: Many of my clients have been moving money out of British sterling into different currencies or into deposit accounts in different countries. While I am not pushing anyone to do this, I am very often asked which countries are safe to hold deposits.
It’s an interesting question and many are often mistaken about what guarantees actually mean.
The most common destination in the region seems to be Singapore. Theoretically, there is an unlimited guarantee on deposits by the government. The main thing to remember about this is that if any government goes bust, as many have done in the past, then the guarantee becomes worthless. I am not saying anything about Singapore specifically here, but one thing you need to consider in conjunction with a government guarantee is the strength of the government itself.
The USA guarantees up to US$250,000, and despite all the saber rattling about offshore jurisdiction, there is more foreign-owned money deposited in US banks than anywhere on the planet.
The USA is officially the largest offshore jurisdiction on the planet. In every crisis, we see money flow into US dollars as well, so it is still considered the safest place in the world when times get rough.
However, the underlying fundamentals of the currency point to a future where this may not always hold true.
Many expats in the region have been depositing money into Cambodian banks for a pretty decent interest rate and an unlimited guarantee. The issue I see with this is that Cambodia is not exactly the strongest economy on the planet, nor is it very rich in natural resources. There is no such thing as a free lunch.
The exchange is simply a reflection of the added risk compared to developed countries such as Australia, where you get close to nothing on your money.
So, essentially we remain in the same environment that we have been stuck in, for what seems like forever now.
Economies all over the world are poised for another shakeout. It just depends where the dominoes fall when the next crisis comes. The advice for this kind of environment remains the same as it has for almost a decade now: it is better to forego a decent return in exchange for avoiding a huge loss.
Diversification across many currencies and in deposits held in many different countries is the best answer if you are sitting on a large amount of liquidity. Money markets don’t provide a big enough return over a simple government-insured deposit account as long as you can stay under limits. This shouldn’t be too difficult if you spend a bit of time researching the countries beforehand.
Cash may seem like a boring topic to revisit, but when the sky starts falling, cash is always king – and always will be. I am not saying the sky is about to fall, but the longer governments keep kicking the can down the road and avoiding crises by printing money or keeping interest rates suppressed, the nastier the next crisis is going to be. Take the time to make sure your cash is safe and it will be ready to pounce when financial assets go on sale.
David Mayes, MBA, resides in Phuket and provides wealth management and life coaching services to expatriates around the globe, specializing in UK pension transfers. He is a regional representative of Faramond Group, located in Kuala Lumpur, Malaysia. Faramond UK is regulated by the FCA to provide advice on pensions and taxation. He can be reached at 085-335 8573 or david.m@faramond.com
— David Mayes
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Business
Governments & old media versus social media – who will win? | VIDEO

We look at the recent changes made by the Australian and Indian governments to except control over the world’s biggest social media platforms. India has issued strict new rules for Facebook, Twitter and other social media platforms just weeks after the Indian government attempted to pressure Twitter to take down social media accounts it deemed, well, anti social. There is now an open battle between the rise of social media platforms and the governments and ‘old’ media that have been able to maintain a certain level of control over the ‘message’ for the last century. Who will win?
The rules require any social media company to create three roles within India… a “compliance officer” who ensures they follow local laws; a “grievance officer” who addresses complaints from Indian social media users; and a “contact person” who can actually be contacted by lawyers and other aggrieved Indian parties… 24/7.
The democratisation of the news model, with social media as its catalyst, will continue to baffle traditional media and governments who used to enjoy a level of control over what stories get told. The battles of Google and Facebook, with the governments of India and Australia will be followed in plenty of other countries as well.
At the root of all discussions will be the difference between what governments THINK social media is all about and the reality about how quickly the media landscape has changed. You’ll get to read about it first, on a social media platform… probably on the screen you’re watching this news story right now.
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Business
The social media giants in battle with ‘old’ media and world governments | VIDEO

“The rules signal greater willingness by countries around the world to rein in big tech firms such as Google, Facebook and Twitter that the governments fear have become too powerful with little accountability.”
India has issued strict new rules for Facebook, Twitter and other social media platforms just weeks after the Indian government attempted to pressure Twitter to take down social media accounts it deemed, well, anti social.
The rules require any social media company to create three roles within India… a “compliance officer” who ensures they follow local laws; a “grievance officer” who addresses complaints from Indian social media users; and a “contact person” who can actually be contacted by lawyers and other aggrieved Indian parties… 24/7.
The companies are also being made to publish a compliance report each month with details about how many complaints they’ve received and the action they took.
They’ll also be required to remove ‘some’ types of content including “full or partial nudity,” any “sexual act” or “impersonations including morphed images”
The democratisation of the news model, with social media as its catalyst, will continue to baffle traditional media and governments who used to enjoy a level of control over what stories get told.
The battles of Google and Facebook, with the governments of India and Australia will be followed in plenty of other countries as well.
At the root of all discussions will be the difference between what governments THINK social media is all about and the reality about how quickly the media landscape has changed. You’ll get to read about it first, on a social media platform… probably on the screen you’re watching this news story right now.
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Business
Turbulence ahead for Thailand’s aviation industry | VIDEO

When the airlines, in particular, were asking the government to put their hands in their pockets for some relief funding in August last year, it was genuinely thought that international tourists would be coming back for the high season in December and January. At the very least local tourists and expats would head back to the skies over the traditional holiday break. And surely the Chinese would be back for Chinese New Year?
As we know now, none of that happened. A resurge in cases started just south of Bangkok on December 20 last year, just before Christmas, kicking off another round of restrictions, pretty much killing off any possibility of a high season ‘bump’ for the tourist industry. Airlines slashed flights from their schedule, and hotels, which had dusted off their reception desks for the surge of tourists, shut their doors again.
Domestically, the hotel business saw 6 million room nights in the government’s latest stimulus campaign fully redeemed. But the air ticket quota of 2 million seats still has over 1.3 million seats unused. Local tourists mostly skipped flights and opted for destinations within driving distance of their homes.
As for international tourism… well that still seems months or years away, even now.
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