Swine Flu: What happens next

As new cases of swine flu emerge around the world, World Health Organization(WHO) has on Monday raised its global pandemic alert level to level four, indicating the influenza virus is capable of sustained human-to-human transmission.

Unlike severe acute respiratory syndrome, or better known as SARS, that hit Hong Kong in 2003, the AH1N1 strain of swine flu has a higher potential to develop into pandemic levels, as the virus has already been confirmed to transmit between humans. It also triggers mostly mild symptoms and has a lower mortality rate compared to SARS. "Although SARS jumped the animal-to-human barrier, it didn't mutate enough to enable sustained human-to-human infection, said Dr. K.Y. Yuen, head of microbiology at Hong Kong University.

"Strictly speaking, Avian Influenza and SARS did not become pandemics because they were too good at killing their hosts. For a sustained pandemic, it needs to be able to maintain human-to-human contact without killing its host off," he said.

While it's too early to predict how widespread the swine flu epidemic will become, it's important to assess its threat and implications to the world, so that we are better prepared when the worst happens.

If there is any lesson that we can learn from the 2003 SARS, it is the economy will come to a halt. As governments impose travel restrictions and close its borders to contain the outbreak, schools will close, and airports will be empty. Tourism and transportation industries will be crippled. In 2003, airline travel to Hong Kong fell by 77 percent and retail sales by 15 percent amid the SARS outbreak.

Financial market knows the consequences of a full-blown flu pandemic. Stock exchanges around the globe tumbled yesterday, with airlines and tourism companies among the hardest hit. On the other hand, shares of pharmaceutical companies that manufacture antiviral drug for influenza shot up in anticipation of greater demand for their drugs. If the flu outbreak gets worse, this trend will surely extend. So, it is best to keep a close watch on those stocks to make a prudent investment as the situation develops.

Although swine flu cannot be transmitted through eating properly cooked pork or any pork product, consumers will normally avoid pork products. Hog industry will too come to a standstill. People will stay at home and avoid as much social contact as possible, causing retail business to dwindle to almost nothing. As a result, internet business will prosper when people turn to the wired world at home to gather information and obtain services.

After a roller-coaster ride last year, the world economy is finally seeing a light at the end of the tunnel. The swine flu outbreak could not have come at a worse time for the world already reeling from a banking and financial crisis. It seems now, the light at the end of the tunnel, could turn out to be the headlight of an incoming train rather than the sunshine we all hope for. Continue reading...

From Living Paycheck to Paycheck to Financial Freedom

If you are a balloon, do you want to roam the sky freely, or would you prefer being tied to a pole?

With the world economy falling off a cliff last year, millions of employees had lost their jobs. According to the U.S. Labor Department, the nation's unemployment rate rose to 8.5% in March, a level not seen since 1983. Elsewhere, from China, to Philippines, to Malaysia, multi-national conglomerates are cutting back expenses, shutting down factories and as a result, millions more workers will be joining the jobless ranks.


Since the recession began in December 2007, jobs were slashed at an unprecedented pace. Until today, the economic recession still occupies the minds of many. The fear of losing jobs haunts those who live paycheck to paycheck as they can't afford to get laid off.

If you read Rich Dad's Cashflow Quadrant, Robert Kiyosaki outlines 4 quadrants based on our source of income.

• E for employee
• S for self-employed
• B for business owner
• I for investor

Most of us are from the E quadrant. We rely on paychecks to clear our credit cards, and to pay at pumps. The problem with this is when we stop working, our income stops too. And depending on the safety net that we have built, our tap may soon run dry.

In the E quadrant, we are trading time for money. The equation here is time = money. We receive money directly in proportion to the time we put in our jobs.

"What's wrong with that?" You may ask.

Since we were kids, we were told by our parents to go to school, study hard, get good grades and then find a safe high paid job after graduation. They put emphasis on steady paychecks and job security. They recommended a life's path that resides in the E quadrant.

However, there is one problem with being in the E quadrant - You only have so much time a day. You can't bargain from God another extra 12 hours a day to work on that project your boss assigned, for example. With 24 hours a day, you only have a certain amount of time to work and as a result, you only make a certain amount of money. Not only is there a cap on the time we can work, we only get paid while we are working. The day we stop working is the day our income stream stops.

Now, do you still think it is a good way to generate income?

Many employees look at employment as the safest and most secure way to support themselves. This is wishful thinking. If there is one lesson that we can learn from this recession, it is - the idea of a safe, secure job with a steady paycheck is all but an illusion. With jobs being axed across the board from private to public sectors, no one is safe. How safe can a job be when you can be sent packing with only three words (you are fired)? Although by owning a business, you will have to take the ambiguity and responsibility of being in charge, at least you are in control of your own fate. You are not at the mercy of your boss.

Before you go and write that resignation letter, I think you should be aware of a few things. There are successes and failures in each of the 4 quadrants. Those in senior positions of a company are making big bucks (whether they have financial freedom is entirely another story), and many entrepreneurs have not been able to keep their companies afloat for 3 years. Operating in the B quadrant requires a different skill set and knowledge from the E quadrant, and vice versa. Not everyone who changes quadrant can do as well in the new quadrant.

Each and everyone of us has different interests in our lives. As we grow older and gain experiences, our goals change. For someone, it is absolutely alright for him to work in the E quadrant at his stage of life. College graduates are often happy to get a job. They may treat it as a learning platform or a stepping stone to get where they want to. No matter what their intentions are, they must plan an exit strategy from the indentured servitude.

Two years ago, while I was working for Intel, I had two colleagues. They would complain and whine about the long working hours and also the relatively low benefits. The first of the two colleagues, Ed, didn't take long to come out with a plan. In search of new financial reward and personal happiness, he ventured out to UK, amid all the uncertainties working in a foreign land. The second colleague, Sam, did not take any actions, nor make any changes. He just wanted to vent out his frustrations.

Although I wouldn't know how these two colleagues of mine will fare in the future, I believe Ed will be a happier person. Even if he fails, at least he fails while daring greatly.

Many of us are unwilling to leave our comfort zone. We fear to take up new challenges and leave our safe harbour. During brain storming session, we are always asked to think outside the box, without fail. This is, in fact, another type of social conditioning. Our boss wants to constrain our physical self in a cage. Have you ever seen a caged Orang Utan looking nostalgically to a distance in the horizon? That's thinking out of the box! Rather than thinking out of the box, we should be outside of the box.

Starting a business is no easy feat, the stake involved is high. However, the rewards are substantial too, because not many people dare to take up the challenge. Hence, you must summon all your courage to take the first baby step. Step by step, soon enough you will find a whole new horizon beyond your safety box.

Now, you can either choose the blue pill and retreat to your blissful ignorance, or take the red pill, embracing the truth that true freedom can't be attained without financial freedom.

The choice is yours.

Continue reading...