• This week’s Economist has an updated “Big Mac Index”. This attempts to use the price of a Big Mac to determine whether currencies are valued correctly. It also gives you an idea where you might not want to go on holiday with children (assuming they like going to McDonalds).

    This summer we went on holiday to the country with the most expensive Big Mac in the world ($5.11), which is quite a shock when you live somewhere that has one of the cheapest ($1.55) and close to the very cheapest (China – $1.23). Next time we’ll go to Thailand ($1.51) or Malaysia ($1.33), I think!

    The prices in McDonalds tend to be indicative of prices generally, though obviously that is not always true. We all know that salaries in Hong Kong are much higher than in Thailand, or even Malaysia, yet that is not reflected in the Big Mac index. As it happens, UBS did some research on how long it would take an average worker to earn enough to buy a Big Mac and calculated that it would take a Thai worker 50 minutes, but an American only 12 minutes. Hong Kong comes in at 13 minutes, which sounds a little high to me. More details on this survey can be downloaded here.

    As to which currencies are under-valued, well the Hong Kong Dollar and Chinese Reminbi both appear to fall into this category based on this data, whereas the Pound and the Euro appear to be over-valued. However, as far as I am aware the Big Mac index is not a good leading indicator of changes in exchange rates, and there is no reason to suppose that this is about to change!

    So, in truth, the Big Mac index is just a bit of fun.

  • The English Schools Foundation (ESF) has chosen a new chief executive. His name is Mike Haynes and he is the chairman of the Parent-Teacher Association at West Island School (details here) and an ESF executive committee member, but other than that he appears to have no previous experience in the education sector.

    The story is covered in today’s SCMP by education correspondent Katherine Forestier, who happens to be a member of the same PTA commitee (but neglects to mention this in the story). Inevitably the story has a quote from Nury Vittachi, chairman of the Parent-Teacher Association at Kennedy School (and one-time writer on the SCMP).

    This all seems a bit puzzling. The most urgent priority is to implement the budget cuts, and specifically the pay adjustments for teachers. According to Jal Shroff, the ESF (acting?) chairman

    The ESF was not necessarily looking for an educator and that there had been a “slant” towards someone with financial experience, as well as knowledge of Hong Kong.

    The general assumption was that they would bring in an experienced outsider to sort things out. Instead of which they have appointed someone who is already part of the ESF Executive Committee (the body that ultimately determines who will get the job) and whose previous background is in the insurance industry!

    I have never met Mr Haynes, and he might be the perfect man for the job, but if you want to persuade the teachers to accept a pay cut and inspire confidence amongst parents then surely you need someone who knows what they are talking about. The logic is presumably that his experience on the PTA and the Executive Committee give him that understanding, but if you wanted to appoint an insider wouldn’t it have made more sense to appoint a professional (for example, one of the ESF headmasters who applied). Or if you were looking for an outsider to come in and shake things up, find someone who is genuinely independent?

    The latest news on the pay cuts is that the 10% reduction for new appointments and the 4.42% cut for exisiting staff when they next renew their (2 year) contracts will go-ahead, but the 3% cuts in each of the next two renewals have been put on hold (details in this PDF file). According to the SCMP, teachers are unlikely to agree to this new deal, and will continue to withdraw their goodwill.

    Are there any ESF teachers reading this? I’d be interested to know what you think. If you don’t know anything about the ESF, start here and then look here.

  • There’s an interesting letter in this week’s Spike magazine, responding to an article a few weeks back by Ross Edwards Marks extolling the virtues of the Atkins Diet. I have watched in amazement as the Atkins diet has become so popular and even respectable, even though it greatly restricts what you can eat and the long-term effects are unknown.

    Many years ago, I read a book called “Dine Out and Lose Weight: The French Way to Healthy Eating” by Michel Montignac after it was recommended in a newspaper. The book was rather badly translated from the French original, but I nevertheless found it useful, and, as the letter in Spike points out, it is a less drastic alternative to Atkins.

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  • Is spam (junk e-mail) really a big problem?

    I have a Hotmail account which I almost never use. The main reason I stopped using it was that 99.9% of the messages were ‘spam’, to the tune of 20-30 per day. I briefly tried using Hotmail’s Junk Mail facility, but it limited the number of email addresses you could block and didn’t seem to work properly, so I gave up on it. I probably should just have given up on the Hotmail account, but I worry that someone might still use it, and it doesn’t take long to scan through the messages.

    Suddenly a few weeks ago the amount of spam on this account dropped dramatically, and I now only get a handful of messages each day (all spam). What has Hotmail done? Will the spammers figure out how to circumvent their blocking?

    My main email accounts receive a small amount of spam each day, but nothing excessive. I recently upgraded Norton Anti-Virus and Internet Security to the lastest version, and this includes an add-in for Outlook that puts virtually all spam into a special folder – where you can review and purge the messages, so a minor problem has become smaller.

    Yet we keeping hearing what a big problem spam has become. This week the SCMP had a piece on the front page of the ‘City’ section saying that “Junk e-mail ‘costs $10bn a year’”. This is based upon a survey commissioned by the Hong Kong Anti-Spam Coalition that says that the average user spend 6.5 minutes per day on dealing with spam. Yeah, right. That’ll be on top of the 30 minutes reading and forwarding jokes and other non work-related emails, two hours surfing the Internet (and two hours updating their blogs).

    Email is a marvellous time-waster in its own right, and even if you stopped spam and could prevent people sending jokes etc. through email, it would still be a problem. Email can be addictive, and often interrupts your other work and distracts you from what you are supposed to be doing. A former boss once sent an email to all the employees in Asia and requested a ‘read receipt’. He was amazed how many people had opened the email within a few minutes of it being sent. Some people even get indignant if you haven’t read the email they sent you a few minutes ago, as if you had nothing better to do than read emails.

    Junk emails are a tiny irritation and represent only a small amount of the time that email wastes. Yet the Hong Kong Anti-Spam Coalition thinks that the government should regulate it. Are there any laws to prevent companies sending me junk mail through the ordinary post? I don’t think so.

    Large companies can quite easily prevent most spam from appearing in the user’s Inbox. I can’t find the article, but a writer on the FT was commenting recently that he longer received spam (though he could visit it on another server if he wished). The reality is that most companies do very little to stop their staff abusing email and the Internet, let alone blocking spam, but the tools are available. When even Hotmail seem to have figured out how to block spam, it can’t be that difficult!

    Incidentally, I do have a grudging admiration for the spammers, because they now work very hard to make the subject line grab your attention and appear to be legitimate. I received one (that I haven’t opened) telling me that my account is about to be deleted, and another one (which I did open) offering bargain flights. They have also hi-jacked another domain name I own, and use it to spend spam with a fake sender’s email address, though the only minor inconvenience this causes me is that I get a few messages from AOL telling me that the spam couldn’t be delivered.

    I will finish with another quote from the Hong Kong Anti-Spam Coalition: “the finanical impact on the Hong Kong economy [is] also very remarkable”. If you say so.

  • A while back I mentioned the HSBC ‘Instant Gift Draw’

    Well, I managed to qualify for this stoopid draw by spending over HK$500 in Park’n’Shop, and so I called their hotline to register. As I expected, it is a painful process – the first time something went wrong after about 3 minutes so I had to start again. The second time it took nearly 5 minutes to listen to all the options, key in the details from my receipt, listen to what I had entered, and press ‘1’ to confirm (every single time). What did I win – a HK$20 voucher for Park’n’Shop? Is that really worth about ten minutes of my time?

    It’s like the MTR ‘Buy 10 Get 1 Free’ promotion. If you travel 10 times during the week you can get a free ticket, but if you forget to go and pick it up (or don’t want to queue) then you miss out. The KCR, on the other hand, achieves a similar result by deducting 20% from every 2nd trip during the same day.

    Yes, I know that the free MTR ticket can be used when you wish, which means that you can get a free cross-habour journey, whereas the KCR offer automatically applies to your next journey, but I’d rather everyone got the benefit rather than some people getting extra and others getting nowt.

    Which reminds me of an ex-colleague who was working in Hong Kong a few years back when we had the Stored Value tickets rather than Octopus cards. The trick with these tickets was to get the remaining value down to 30 cents (or as low as you could) and then travel, say, from Tsuen Wan to Heng Fa Cheun to get the maximum value on the final trip (after which the machine swallowed the ticket). My colleague didn’t understand, and when his remaining value got down below HK$3 he would throw the ticket away because he thought it was useless! Oh dear.

  • I added a site counter, but so far it is not giving me the same results as the TypePad statistics, and I’m not quite sure why! I get very confused by the stats anyway, because I assume they are calculated based on the day from midnight wherever the company is based to midnight the next day.

    TypePad gives the following stats

    Total number of hits:   
    7086
    Average per day:        
    133.70
    Today:                         
    486
    In the last hour:           
    10
    This week:                  
    2035

    which is fairly encouraging, but the site meter shows a much lower number! Is TypePad trying to give me encouragement so I carry on using their service?

  • My post about the effects of the government’s land policy prompted a lively debate over at the Gweilo Diaries [it was a blog run by someone calling himself “Conrad”]

    Predictably, it has caused outrage from at least one property owner, who assumed that (i) I don’t own property and (ii) that I was advocating that prices should fall. Conrad weighed in to support the contention that prices are too high, and arguing that the government should get out of the market.

    I wasn’t specifically arguing in favour of lower property prices, though I can see why it was interpreted that way. My point was that the current arrangements obstruct the transformation of industrial areas to residential and commercial use, and one suggestion I made was that the lease premium should be replaced, possibly by a profits tax (so the government should benefit as these areas become more attractive and prices rise).

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  • The Sun (a British tabloid) puns about the death of a serial killer:

    Sun-040114.bmp

    I may be alone in this, but I find it very hard to rejoice about anyone’s death. I felt similarly about the coverage of, and reaction to, the deaths of Uday and Qusay Hussein, especially the gruesome photographs released by the US forces.

    The Sun also published an editorial that was as measured and considered as you would expect.

    THE world is a better place today now that Harold Shipman is dead. The wicked doctor was a barbaric creature who betrayed the trust of the patients he murdered and destroyed the lives of several hundred families.

    Shipman had supposedly dedicated himself to a lifetime of caring for people. Instead he murdered them: maybe 260, maybe many more. We shall never know. Shipman never once expressed remorse for his evil deeds, nor did he explain what drove him to kill.

    By taking his own life — the easy way out — he has left many families feeling cheated of justice. But why are the authorities wasting time and money on finding out how Shipman managed to commit suicide? We should be glad that he’s saved us the cost of keeping him locked up for many years. Let’s hope he’s now sharing a hot room in Hell for eternity with Fred West and Myra Hindley.

  • One of the great unresolved mysteries about Hong Kong restaurants is why some of them think their customers want icy blasts of cold air with their food – even in the middle of winter. Today I had lunch in a dim sum restaurant that really excelled itself in this regard – one of my colleagues was wearing a fleece jacket with the hood up and still complained that she was cold. I wasn’t wearing a coat or jacket – because oustide it was mild and quite pleasant, but inside the restaurant was another matter. The only small consolation was that by sitting back in my chair I was out of the direct line of the aircon (though I couldn’t eat my lunch either, which rather defeated the object of going there).

    Apart from the discomfort, you also end up with cold food. I used to go to a small restaurant which didn’t have the normal heated trolleys for dim sum, and you could almost guarantee that most of it would be stone cold by the time you were served. Even in restaurants that do have the trolleys (or ask you to order dim sum from a menu and then bring it to you), the pressure is on to finish the food quickly before it gets cold!

    Why do they do it? I can only assume that the staff, who are rushing around serving people, like it to be cooler and don’t realize that the customers, who are sitting still, find it uncomfortable. Or do they want to dissuade you from staying too long?

    Whatever the reason, it really is a ridiculous waste of money and energy.

  • When I lived in London, I spent a large part of my life never having to use an elevator. In fact when I was a child, one of our small amusements on a Saturday was going on the bus to a large new shopping centre and travelling up and down in the car park lifts. Sad, I know, but true.

    My apartment in London was on the first floor and, although it did have a lift, it had been broken for many years (and who really needs one in a four-storey building?). Most of the offices where I worked there either didn’t have a lift, or there was no need to use it unless you were really lazy.

    However, here in Hong Kong, almost everyone uses lifts several times a day, at home and at the office. Unfortunately, this brings with it many frustrations and much aggravation. Plus it gives me something to write about in my blog.

    I’ve got used to people jabbing the lift button repeatedly in the strange belief that this will make the lift come more quickly; pushing in to the lift before people have a chance to leave. and pushing the ‘door close’ button rather than waiting for the doors to close. It can be quite amusing getting in to an occupied lift and not pressing the ‘door close’ button – someone will usually make clear their exasperation and press the button whilst looking at you as if you were an idiot.

    Fumier has recently written about this, and is complaining about another thing people do.

    People will press both the up and the down button and get in whichever lift comes first. They may therefore travel up 4 floors and then down 5 floors in order to go down one floor. The lift therefore makes twice as many stops, goes twice as slowly, and is full of people going in the wrong direction, thereby preventing people going in the right direction from getting in, and hence building up the backlog of passengers, and thus encouraging them to press both buttons and get in whichever lift comes first, and so on and so on.

    Yes, that happens in my nearest large shopping centre. The reasoning is that the lift is often full, so it is quicker to get in whenever you have the opportunity and go down before you go up (this happens most often when there is only a single lift in a particular location).

    Something else that annoys me is that everyone wants to select their floor the precise momeny they enteri the lift, rather than waiting to get inside or asking someone else to press for them. Then, of course, the doors start closing as people are still waiting to enter the lift (presumably they respond so quickly because otherwise the buttons need to be replaced very frequently).

    Beyond this, we get to people who behave in a very selfish way. It seems quite rare for people to actually keep the doors open so that someone can get in to the lift, and some people actually push the ‘door close’ button when they see people coming to try to ensure that they are not kept waiting!

    Fumier says that Game Theory explains the way individuals behave, by which I think he means that each person will do what is best for them rather than worrying about anyone else. Fair enough, but what baffles me is when security guards in buildings are instructed to do things that actually makes things worse overall.

    One building where I worked had a security guard on duty from around 8.30 to 9.30 just to press the lift buttons and to hold the doors open so more people could get in. I was never convinced that this helped very much, and if they’d really wanted to do this efficiently they could have directly controlled the lift.

    An even more puzzling example of this is in the industrial building where I now work. It has three passenger lifts, one for the odd-numbered floors, one for the even-numbered floors, and one for both. Like the Hopewell Centre, it has entrances at different levels. I normally enter through the main entrance on the upper ground floor, and the security guard stands there during the morning pressing both the ‘up’ and ‘down’ buttons on all three lifts. Yet I have never seen anyone get in the lift when it was going down, and if they did, it would be inefficient, as Furnier correctly points out. In spite of this, someone has specifically asked the security guards to stand there pressing the buttons. It’s madness, I tell you!