Deepak Machado- Pics: Vivian PintoDaijiworld Media Network - Dubai
Dubai, Apr 5: A jargon for many, a headache for policy makers, a cyclical phenomenon for economists; ‘Recession’ for many has meant lost jobs, lower sales, lower bottom lines, an uncertain future etc. Keeping the current scenario in mind, it was an apt occasion to let people know what recession all about is and its effects on family life. Mangalore Konkans, Dubai held a seminar pertaining to – “Recession and its effects on family life” at India Club on 3rd of April evening at 7.
The speaker for the day was Royston Fernandes-GM of Lobo Management Consultants, Abu Dhabi who brought forward his thoughts on recession and its effect on family life.
Ivan Fernandes, Chairman of DUCONT was on the panel of experts who clarified the doubts and questions of the audience. He was accompanied by Royston Fernandes.
Valerian Peris and James Mendonca welcomed the gathering. Aboline D’cunha introduced the speaker. Tracy Rodrigues introduced Ivan Fernandes.
CONTENTS
Royston began his address by clarifying the difference between recession and depression. When an economy is under recession production declines and if the GDP of the country is hit badly. He mentioned that before understanding recession it was necessary to understand market and market economy. Two factors of the market are demand and supply and two stages of market economy are growing and declining. The equilibrium in demand and supply decides the prices of goods and services.
In a growing market economy there is always a higher demand for goods and services, there is a higher liquidity and everyone seems to be happy and there is a general willingness to buy. But in a declining market economy there is less demand, and as a result production falls, companies lay off employees and there is a negative sentiment in the market and an uncertain future. Recession happens when the Market Economy has declined and when the supply is more than demand.
Royston mentioned that in the current recession all companies are not affected. Healthcares, FMCG are not as affected as much as Real estate, Financial services are. The current market scenario is such that cash has evaporated (credit crisis), profitability is severely hit, there is a lack of sales, mass layoffs etc. The worrying facts for a breadwinner are a family to manage, loans to pay, savings to be done etc.
In such a scenario the don’ts for employees are ‘waste time gossiping, take too much vacations, resist salary cuts, resist transfers etc. Employees need to be open minded and be prepared to take unpaid time off, working few days in a week, wage freeze etc.
The do’s for employees are to be punctual to office, ensure to pick up new skills, do something innovative, take training programs, work hard and save money for your employer etc. He further added to be cheerful because life goes on.
If a person is jobless, Royston gave few tips as to what should be done. A person who has lost job should not hold preferences regarding city, salary, designation, location etc when an opportunity comes along, you need to go through your references. Keyword employers are looking for is ‘flexibility’. Improving communication skill should be the top priority as per Royston. Investment in acquiring new skills would enhance the chances of landing in a job.
A family has to take a stock of its daily expenses by writing down the expenses. A clear distinction has to be drawn between ‘need to have’ and ‘nice to have’ expenses. All ‘nice to have expenses’ need to be done away with. Cash is king in times of recession and a high priority has to be placed on this. Royston mentioned that one should live as though one could lose his job tomorrow.
A family needs to check the services subscribed and whether they are necessary when it comes to mobiles phone, broadband etc. Royston reiterated to live within the means and expect no handouts from anybody.
Debts can not be cancelled in the UAE. Credit cards are not to be used for withdrawing cash. An individual has to consolidate the loans. People having home loans needs to look at whether it can be refinanced, if the property fetches fair value it is better to sell it.
Parents have to be honest with the children and make them understand of the situation. Children in turn need to understand the parents.
If you are a businessman, you should look at selling non income yielding assets, improve your account receivables, discipline discretionary expenses, switch to energy saving habits, relocate to smaller premises etc said Royston. Cleaning up the balance sheet should be the top priority.
Wealth management: This is the right time to get into investments in stocks as the shares of several companies are quoting fraction of their peak values and many are undervalued. Investing in SIP(systematic investment plan) in a mutual fund scheme is a wise investment.
Should you invest in a property? First preference of investment should be land, second land and house, third preference should be an apartment.
The living principle in recession is: “Happiness is inversely proportional to expectations/ desires.” The more the expectations/desires, the less the happiness and vice versa.
Royston gave some suggestions to live a great life. Spend time with family, exercise, walk a lot, drink lots of water, listen to radio, watch some TV, visit libraries, Read books you purchased but never read, go to friend’s place for a dinner, enroll into a hobby, join laughter forum, meet interesting people etc.
Finally Royston asked not to worry, what goes down will always go up, markets will rebound.
The presentation was followed by question and answer session which was handled by Ivan Fernandes and Royston Fernandes. Ronald D’cunha proposed the vote of thanks. James Mendonca and Santhosh Nazreth felicitated the speakers. The seminar was followed by a dinner.
Dubai, Apr 5: A jargon for many, a headache for policy makers, a cyclical phenomenon for economists; ‘Recession’ for many has meant lost jobs, lower sales, lower bottom lines, an uncertain future etc. Keeping the current scenario in mind, it was an apt occasion to let people know what recession all about is and its effects on family life. Mangalore Konkans, Dubai held a seminar pertaining to – “Recession and its effects on family life” at India Club on 3rd of April evening at 7.
The speaker for the day was Royston Fernandes-GM of Lobo Management Consultants, Abu Dhabi who brought forward his thoughts on recession and its effect on family life.
Ivan Fernandes, Chairman of DUCONT was on the panel of experts who clarified the doubts and questions of the audience. He was accompanied by Royston Fernandes.
Valerian Peris and James Mendonca welcomed the gathering. Aboline D’cunha introduced the speaker. Tracy Rodrigues introduced Ivan Fernandes.
CONTENTS
Royston began his address by clarifying the difference between recession and depression. When an economy is under recession production declines and if the GDP of the country is hit badly. He mentioned that before understanding recession it was necessary to understand market and market economy. Two factors of the market are demand and supply and two stages of market economy are growing and declining. The equilibrium in demand and supply decides the prices of goods and services.
In a growing market economy there is always a higher demand for goods and services, there is a higher liquidity and everyone seems to be happy and there is a general willingness to buy. But in a declining market economy there is less demand, and as a result production falls, companies lay off employees and there is a negative sentiment in the market and an uncertain future. Recession happens when the Market Economy has declined and when the supply is more than demand.
Royston mentioned that in the current recession all companies are not affected. Healthcares, FMCG are not as affected as much as Real estate, Financial services are. The current market scenario is such that cash has evaporated (credit crisis), profitability is severely hit, there is a lack of sales, mass layoffs etc. The worrying facts for a breadwinner are a family to manage, loans to pay, savings to be done etc.
In such a scenario the don’ts for employees are ‘waste time gossiping, take too much vacations, resist salary cuts, resist transfers etc. Employees need to be open minded and be prepared to take unpaid time off, working few days in a week, wage freeze etc.
The do’s for employees are to be punctual to office, ensure to pick up new skills, do something innovative, take training programs, work hard and save money for your employer etc. He further added to be cheerful because life goes on.
If a person is jobless, Royston gave few tips as to what should be done. A person who has lost job should not hold preferences regarding city, salary, designation, location etc when an opportunity comes along, you need to go through your references. Keyword employers are looking for is ‘flexibility’. Improving communication skill should be the top priority as per Royston. Investment in acquiring new skills would enhance the chances of landing in a job.
A family has to take a stock of its daily expenses by writing down the expenses. A clear distinction has to be drawn between ‘need to have’ and ‘nice to have’ expenses. All ‘nice to have expenses’ need to be done away with. Cash is king in times of recession and a high priority has to be placed on this. Royston mentioned that one should live as though one could lose his job tomorrow.
A family needs to check the services subscribed and whether they are necessary when it comes to mobiles phone, broadband etc. Royston reiterated to live within the means and expect no handouts from anybody.
Debts can not be cancelled in the UAE. Credit cards are not to be used for withdrawing cash. An individual has to consolidate the loans. People having home loans needs to look at whether it can be refinanced, if the property fetches fair value it is better to sell it.
Parents have to be honest with the children and make them understand of the situation. Children in turn need to understand the parents.
If you are a businessman, you should look at selling non income yielding assets, improve your account receivables, discipline discretionary expenses, switch to energy saving habits, relocate to smaller premises etc said Royston. Cleaning up the balance sheet should be the top priority.
Wealth management: This is the right time to get into investments in stocks as the shares of several companies are quoting fraction of their peak values and many are undervalued. Investing in SIP(systematic investment plan) in a mutual fund scheme is a wise investment.
Should you invest in a property? First preference of investment should be land, second land and house, third preference should be an apartment.
The living principle in recession is: “Happiness is inversely proportional to expectations/ desires.” The more the expectations/desires, the less the happiness and vice versa.
Royston gave some suggestions to live a great life. Spend time with family, exercise, walk a lot, drink lots of water, listen to radio, watch some TV, visit libraries, Read books you purchased but never read, go to friend’s place for a dinner, enroll into a hobby, join laughter forum, meet interesting people etc.
Finally Royston asked not to worry, what goes down will always go up, markets will rebound.
The presentation was followed by question and answer session which was handled by Ivan Fernandes and Royston Fernandes. Ronald D’cunha proposed the vote of thanks. James Mendonca and Santhosh Nazreth felicitated the speakers. The seminar was followed by a dinner.
