Finances

In Malaysia, we have many new start-up companies which are dynamic and vibrant in today's world actually. Hence, we at FinanceMalaysia would like to bring these companies in front to your screen and let our readers know them and be proud of. ☺ To kick-start our very first company in these " FM new tech company " series, we are glad to introducing EasyParcel , the local company in this new-economy type of industry. Let's explore here... 1) How was EasyParcel being started? What inspires the idea of setting up such company? EasyParcel is a spin-out from the Exabytes Group , the largest web hosting provider in Malaysia. Since 2011, Exabytes Group started to venture into cloud-based e-commerce, offering  EasyStore , an all-in-one platform online stores. However, being an e-commerce seller our selves, we always felt that there is still something missing in the entire e-commerce ecosystem. Heading the direct addressing of this matter that has been bugging the startup – eas...

It's strange when many of us read the news saying that the recent US trip made by our PM is somewhat ' surprising '! Before the Trump face to face meeting, it was highlighted that we're not going to the US begging for money. Yes, it's true. However, after the meetup, many Malaysians think that we better go US begging for money instead of giving money to the US. Lol... ☺☺☺ A very expensive US trip ??? We're not talking about the airfare, we're talking about the outcome from the trip. Almost RM100billion (equivalent to $25 billion) !!! It's a huge amount considering our economy size compared to the US itself. #1:  Malaysia to help boost the US economy ??? Awesome. Most of us can't believe that Malaysia is such a powerful country, which can boost the US economy. Unbelievable . Really. Given our size of the economy, obviously, US should be the bigger brother to look after us. Anyway, it looks like the other round now. #2: US enemy is our enemy??? Yup. Th...

After various setbacks, the government has finally decided that the tourism tax will be officially  implemented from 1st September onwards. Find out how much the tourism tax will be, and the  reason behind its implementation. What is the tourism tax? The tourism tax rate will be fixed and charged on a per-room and per-night basis. But it will not  apply to homestays, premises maintained by religious institutions for non-commercial purposes, and  premises (for example Airbnb ) with fewer than 10 rooms. So this means Airbnb residences with 10  rooms and more will have to charge the customers the tourism tax. Among the reason that the tourism tax is being implemented is due to the annual federal budget  cuts that the Tourism and Culture Ministry has been subjected to. As such, the Ministry could benefit  from added revenue in the form of additional charges. Additionally, the tax is said to be necessary  because the government needs to lessen uncert...

From 1 August 2017 onwards, every Private Retirement Scheme (PRS) contributors can make a nomination on your PRS savings. The purpose of making a nomination is to make it easy for your loved ones to receive your gift in the event of your passing on. Without your nomination, your loved ones may encounter difficulties when making a withdrawal from your PRS account, which may be a lengthy process. How to make a nomination??? First of all, we must understand there is a body called " Private Pension Administrator (PPA)". It is the central administrator for the PRS scheme with following benefits: Provide lifetime account management and reporting for PRS members Provide online access to PRS members’ accounts Provide one-stop center for PRS learning and information on retirement The nomination is provided by PPA (not respective PRS providers). Meaning, the nomination will take effect on all the PRS money although you may have invested with a few PRS funds with different companies....

The new bill has been tabled in parliament for first reading a few days ago. Whether you like it or not, this will affect all the employees in the country once it was being passed. Yup, it's everyone and every employer also! Let's unveil the amazing Employment Insurance Scheme (EIS) ... What's the objective of EIS ??? To provide financial assistance to private workers who lost their jobs until they find new employment Retrenched workers will also be given help to search for new jobs, career counseling, and training. How much premium and who's going to pay for it? The premium rate will be based on the monthly salary of the employee at around 1.5% . And, employer and employee have to share the cost equally . Example, for an employee with RM3,000 salary, the premium is RM45 monthly shared equally by both parties. Can it be by a way of salary reduction/adjustment? Clause 24 (1) of the Bill states: “[The] Employer shall not , solely by reason of his liability for any co...

Calling all small-and-medium enterprises (SME) who want to raise funds to expand your business. Meanwhile, for investors, you have another market for you to consider (maybe for diversification purpose or searching for high potential return?). Introducing Leading Entrepreneur Accelerator Platform (LEAP) !!! LEAP Market is a new market offered by Bursa Malaysia which aims to: provide SMEs and other companies with greater fund raising access and visibility via the capital market; and  be accessible only to sophisticated investors * * as prescribed under the Capital Markets and Services Act 2007 The LEAP Market aims to bring together potential issuers, intermediaries, and Sophisticated Investors onto a new platform to create a conducive marketplace for fund raising . The LEAP Market provides an efficient and transparent capital formation and price discovery mechanisms compare to private market. Sophisticated Investors can now have greater opportunities to participate in the growth of...

Along with the continuous efforts by Bank Negara Malaysia (BNM) to further tightening the local financial industry, insurance companies could be their next focus. Why said so? Based on a news report by Bloomberg: 'Foreign insurers have until the end of June 2018 to reduce their holdings in local firms to 70% at most , one person said. The country’s central bank has been weighing tougher enforcement of a cap on foreign ownership as it seeks to boost local participation in the industry, people familiar with the matter said in April.' Then? Automatically, this will make us think about a few foreign insurers which are operating in Malaysia currently such as Great Eastern, Prudential, AIA and Tokio Marine . All of them are wholly owned local unit by their foreign-based parent company. Reducing the parent's shareholding to 70% means that they have to sell its stakes or opt for an IPO listing here. Which way is better? Selling a stake (30% at least) to local counterparts definite...

Are you an investor of Amanah Saham Nasional? It's troublesome to bring your ASNB passbook to update the dividend and transactions annually? Scared that you will misplace the passbook when moving house? No worry! ASNB heard it and understand your difficulties, thus, they are doing away the passbook from now onwards. Announcement #1 With effect from 28 June 2017 , ASNB will implement transaction facility without passbook for all ASNB funds to facilitate and expedite transactions for our unit holders. Unitholders are required to present their Mykad for all transactions including  additional investment and redemption at all ASNB branches and agents. A printed transaction receipt will be given for every transaction. Yes. Just bring your MyKad will do. Enjoy your process. Announcement #2 INCOME DISTRIBUTION STATEMENTS, ANNUAL REPORTS AND INTERIM REPORTS THROUGH ELECTRONIC MEANS EFFECTIVE 2018 Effective from the financial year ending 2018 onwards, all the unit trust funds...

Recently, there is an article by Chinese newspaper saying that more than half of the unit trust funds cannot beat EPF dividend rate. This has created a lot of doubts in the mind of EPF MIS investors. Is it true? Since 1997, the scheme was rolled out by EPF with the approval from the government to let members have the choice to determine their retirement funds investment. Having said so, there is some restriction on the investment withdrawal and subjected to review periodically. The approved funds under EPF MIS has to be reviewed yearly by EPF team based on certain criteria to be met, such as funds' return performances and its' consistency. Click here to find out the rules of EPF-MIS withdrawal. High entry fee ??? Flat 3% entry fee or sales charge was being imposed for every EPF MIS withdrawal. A major portion of this will goes to the agent who advises and help you to make the transaction. But, was it high? First, if you compare to cash investment (although investing into the ...

Johor Bahru was once listed as one of the top ten most affordable cities in Asia to work in by the Nomad List in 2016, though it has recently been ranked much lower at 55 th position. Though we aren’t sure of the reason behind this significant fall, one thing is for sure: inflation is beating Malaysians at its best this year. If you have been wondering about the difference in the cost of living in Johor and Kuala Lumpur, you should take a look at the in-depth analysis of components to compare the cost of living between both cities (based on findings by Numbeo ) below. The Cost of Living in Kuala Lumpur vs. Johor Bahru Eating Out Note: The findings are based on the average numbers from surveyors for the past 18 months. It is safe to say that eating out is generally cheaper in Johor Bahru than Kuala Lumpur. However, many claims that you will find it harder to get a variety of food options in Johor Bahru as compared to Kuala Lumpur and Penang. Nonetheless, it doesn’t hurt to know that y...