Bank Islam Enhances Its Virtual Account Opening Service To Reduce Time Spent In Branches

(Image: The Malaysian Reserve)

Bank Islam has upgraded its Virtual Account Opening (VAO) service, which lets customers open selected bank accounts more conveniently by starting their application online before completing it speedily at a branch.

The VAO service lets customers skip the traditional account opening procedure by filling an e-form on Bank Islam’s website. Upon submitting the online application, you can then visit a preferred branch within 30 days, where you can swiftly complete the verification process by skipping the queue. The service is enabled for three accounts: the Al Awfar investment account, Qard savings account, and basic savings account.

“This virtual account opening initiative aims to bring greater convenience and value to customers, at the same time shaping the future of banking,” said the chief executive officer of Bank Islam, Mohd Muazzam Mohamed said. He added that the VAO service is part of the bank’s digital transformative initiative to widen banking access, save time and cost through a simplified application process, as well as promote environmental awareness by going paperless.

“Since the launch of the VAO in February 2018, we have received an average of nearly 2,000 account openings through the platform every month, thus significantly reducing queues and over-the-counter account openings,” said Mohd Muazzam.

(Image: The Malaysian Reserve)

Moving forward, Bank Islam has plans to introduce a non-face-to-face feature for the VAO service, intended to remove redundancy in the verification process and to streamline the existing procedure. Although the bank did not share specific information as to how the feature will work, it is expected to go live in the third quarter of 2020. Mohd Muazzam also expects the new feature to encourage a huge growth in online registrations.

“Through VAO, Bank Islam is keeping abreast with the demands of our customers and today’s digital trend. Hence, we are constantly innovating to revitalise customer centricity initiatives, making banking services for our customers simpler, smarter, and more flexible. It is important as the world is adapting to the impact of Covid-19,” said Mohd Muazzam.

(Image: The Malaysian Reserve)

In addition to the VAO service, the bank also plans to develop a seamless account opening service via its “GO by Bank Islam” mobile app. This new initiative promises to provide simplicity on the go, and was conceived after receiving support from the market.

You can find out more about
Bank Islam’s VAO service
 on its website.

(Source:
The Malaysian Reserve
)

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About THE AUTHOR

Alex Cheong Pui Yin

Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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Too Old For a Credit Card?

Some time ago we received an email from a disgruntled customer who had applied for a credit card and been rejected. The customer, although a retiree, professed to be financially comfortable with a freelance income and more than ready to meet her obligations (if any) to the bank.

However, she was contacted by the bank and told that her application could not be entertained as she had no EPF statements as proof of income.

Disappointed, the customer dropped us a note and it made us ask a question we never had before: Could a person be too old for a credit card in Malaysia?

The Customer’s Story

Y contacted us via email and shared her story with us. With her permission, the story went something like this…

Wanted to apply for X card, mainly because the card I have had it’s benefits downgraded. Thinking it will be good to get another card (what’s more with a free Huawei), I applied for card X.

But the bank does not seem to entertain retirees. Someone from the bank called and after a brief conversation, asked me to try other banks as I do not have EPF statements to support my application. What about payslips, bank accounts, etc? Apparently, not enough.

Frankly, I am a wee bit humiliated. Can’t the bank be more flexible on proof of income when it comes to retirees?

Sending Out Feelers

To try the theory on for size, we had some retirees apply for a credit card with the bank involved in this customer’s story as well as about 2 others. What we found from the three banks were unanimous: no EPF statement = no credit card.

Admittedly, we did not try every bank but in a bid to understand why such a situation would exist; we analysed the general reasons for rejection of a credit card application that we gleaned from our sources.

With an entire article devoted to the bank’s determination of risk,
proof of income does play a huge part in the deciding of credit approvals
 in this country.

A Possible Rationale

Before a bank can decide to offer you a loan or not; they would first need to assess the level of risk involved in lending to you. Based on this assessment that is probably similar across the board; the inability to sufficiently prove a stable income will weigh heavily against you.

As mentioned in the
article discussing customer risk above
; the ‘formula’ or criteria is likely already set with no discrimination as to the differences of circumstances amongst the customer base.

In short, retirees are unfortunately excluded over the lack of some income documents because of the set system of risk analysis and not from an age discrimination standpoint. A
report in the Telegraph UK
 regarding a similar case featured a comment from a bank representative that confirms this rationale:

“While anyone can apply for a credit card, not everyone is entitled to receive one. Unfortunately, many of the more attractive credit cards do have minimum salary requirements, which could exclude some older people.”

However, as feminists have since time immemorial argued: a situation that indirectly discriminates against a particular demographic is discriminatory even if the initial intention was not to be so.

What Can Be Done?

Whether or not banks have intentionally decided to discriminate against senior applicants is a moot point if the outcome of the selection process has inevitably led to such a conclusion.

This exclusion isn’t just causing financially competent retirees some heartache; it’s also costing the bank in the untapped potential of the possibly affluent retiree segment.

Just as other products, such as health insurance, has done; would it not be possible to tailor-make a credit card for a retiree? Perhaps the criteria for approval can be tweaked along with the mechanics of the card in order to not only provide the bank with the assurance they need but also prevent the exclusion of any market segment.

At the end of the day, dear Malaysian banks – there are some retirees like Y above who would like to hold credit cards and have the means to repay: now is that not a market worth tapping?

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    Jonah Teh

    3 years ago

Some retirees from the government sector have fixed regular monthly pentions, some as high as ten of thousands, until the very end of their lives. Don’t you think this regular monthly pensions can constitute as regular incomes! Many want credit cards not really for urgency or contingency purposes, but simply because of certain advantages and convenience accrued only to credit cards which even debit cards do not have.

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    Zyda Azyan

    2 years ago

It is true. I wanted to change my credit card that I observed had no advantage, to a different cc from anothet bank. Once the application was sent, the bank called and straight away told me that it cannot be processed as I am a retiree. I am a Govt retiree and have no EPF statement, even whrn I was working. I do have enough finances to cover monthly credit payments. So sad for this. We are stuck with the ols credit card and could not have better alternative.

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    NIK ZAMRI ABDUL MAJID

    1 year ago

I am 70 years old and gainfully employed. Largest shareholder of an unlisted public company. Did not have credit card due to Insolvency Department problems. Now resolved and need a card as I travel both local and overseas often

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    Rod

    1 year ago

Banks sucks at times.

However a good friend who was a bank manager offered me a solution as a senior citizen to help in the card application.

Place a fived deposit of rm10k minimum and get a back to back guarantee for a credit card approval supported by the branch manager.

It takes a bit of work but its worth it if you are after a credit card.

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    Janet

    1 month ago

    Reply to

        Rod

Hi! I am a new retiree. May I know which bank offers this 10K minimum? Thank you

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    Lai Chin Fook

    9 months ago

Today is 2022 and I have just been rejected for a new credit card.  No explanations, I tried to fill in the form and the bank responded that they only entertain below 65s

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HSBC Is Rewarding Cardholders For Using E-Wallets - Here's How To Earn 26.67% Returns

In the last month, HSBC has announced not just one or two, but three concurrent promotions for its credit and debit cardholders, rewarding them for e-wallet usage – specifically on Fave, Touch ‘n Go eWallet and Grab. Interestingly, both promotions give cardholders plenty of chance to earn cashback and points for the next six months – let’s break them down to see how much you can earn.

HSBC x TNG eWallet

The most attractive promotion of the lot offers a very attractive
20% additional e-wallet credits when HSBC cardholders top up a minimum of RM50
. The cashback is capped at RM30 a month, and is limited to a monthly pool of RM30,000 per calendar month. Promotion applies to both HSBC and HSBC Amanah credit and debit cards.

This promotion ends 30 April 2020.

HSBC x GrabPay

The second promotion, running concurrently, offers
1,000 GrabRewards Points for HSBC cardholders
 who save their cards into their GrabPay wallet and reload a minimum of RM50. Again, the offer is limited – only the first 1,045 debit card and 3,000 credit card holders per calendar month will receive the bonus points.

This promotion ends 30 April 2020.

HSBC x Fave

For Fave, HSBC is offering
cashback deals for both FavePay and FaveDeals
 transactions, with slightly different promotions for existing and new users.

For existing users, both FavePay and FaveDeals transactions using the promo code FAVEHSBCC (for credit cards) or FAVEHSBCD (debit cards) will give an instant 20% rebate, capped at RM10.

Note that this offer is limited to the first 1,000 (FavePay) or 200 (FaveDeals) credit card and 100 (FavePay and FaveDeals) debit card redemptions per calendar month.

Meanwhile, new FavePay and FaveDeals customers using the promo code FAVEHSBCN will receive either 20% (FavePay) or 35% (FaveDeals) cashback, both capped at RM10. Cashback will be given in the form of Fave credits, which will automatically be used in the next transaction.

This promotion also ends on 30 April 2020.

How to maximise cashback and points?

1) Optimise the e-wallet top ups

If you are a HSBC debit or credit cardholder
and
you use either or both TNG eWallet and Grab, this is a great opportunity to rack up free credits. You’ll earn the maximum RM30 extra credits on TNG eWallet when you top up RM150, earning you 20% more credits – far larger than any cashback credit card returns.

Meanwhile, 1,000 GrabRewards Points is equivalent to RM8.33 based on Grab’s new points redemption rate. This translates to a 16.66% return when you top up RM50 – not as much as TNG eWallet’s returns, but you are also spending less to unlock this return.

As for Fave, it’s not an e-wallet since there is no wallet function that you can add funds into. That said, 20% instant rebate is still solid – you’ll hit the RM10 cap when you spend RM50.

2) Use the right credit cards

Of course, you can earn more rewards by using the right HSBC credit cards. For instance, the
recently relaunched HSBC Amanah MPower Platinum Credit Card-i
 is offering 8% cashback for “closed” e-wallets capped at RM15 a month. “Closed” e-wallets are those which do not offer withdrawal facilities, and includes – you guessed it – Fave, GrabPay, and TNG eWallet! This is a limited-time feature, and will be reduced to 1% from April 2020 (one month before the end of the two e-wallet promotions).

If you use the HSBC Amanah MPower credit card to top up TNG eWallet and GrabPay to earn the maximum bonuses above, you’ll be spending RM200 (RM150 on TNG and RM50 on GrabPay) and in return receive RM15 cashback (it should be RM16, but the monthly cap is RM15). Combine this with the top up bonuses, and you’ll be earning the equivalent of RM53.33 in cashback every month from November 2019 until March 2020 – that’s a total of RM266.65 with a net spend of RM1,000 over five months, and an effective return of 26.67%.

That doesn’t even take into account the additional rewards you earn by spending with the e-wallets, which can be
up to 7.5% on GrabPay
 and a random cashback for the
first three TNG eWallet transactions per month
 (until December 2019).

The
HSBC Amanah MPower Platinum Credit Card-i
 offers better returns compared to two other popular HSBC credit cards. The
HSBC Visa Platinum
 and
Visa Signature
 yields 5x Rewards Points for online spending,
which includes “closed” e-wallets
 like Fave, GrabPay, and TNG eWallet (Visa Signature only). Both these cards offer different redemption rates for a RM100 voucher: 50,000 Rewards Points for Visa Platinum and 30,000 Rewards Points (limited numbers) for Visa Signature.

That’s a cashback equivalent of 1% for the Visa Platinum and 1.67% for the Visa Signature (at the RM1 = 5x Rewards Points earning rate for both cards), which pale in comparison to the 7.5% cashback you get with the Amanah MPower.

Maximise returns the smart way

Promotions like these by HSBC are quite rare – the fact that HSBC is running all three e-wallet offers for
six months
 means cardholders have plenty of chance to earn cashback. But since the rewards are given on a first come, first served basis, be sure to do your transactions as early as possible.

Remember also that e-wallet funds do not expire, so even if you don’t spend RM200 via e-wallets in a month, you can “lock in” the bonuses to be used in the future. Just make sure you have the holding power to do so.

Similarly, if you don’t use any of the e-wallets frequently, it’s best to reload based on your needs – or you might end up with
a lot
of money stuck in Grab and TNG eWallet. These campaigns are designed to encourage spending, so be prudent when taking advantage of these offers to make sure you don’t overspend and over-stretch your finances unnecessarily.

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Pang Tun Yau

Pang Tun Yau

A seasoned tech journalist who now focuses on his other passion, Pang is a firm believer in old-school DCA and optimised spending.

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Selangor Public Holidays 2018 - Where to Go and What to Do

We, Malaysians, love our public holidays. Every time we win a sporting event, we start cheering and hoping for a day off. Thank goodness, on top of the set national holidays, the public holidays exclusive to Selangor in 2018 has two midweek bonus days and one unfortunate date that landed on a Saturday.

Thaipusam – 31 January (Wednesday)

Nuzul Quran – 2 June (Saturday)

Birthday of The Sultan of Selangor 11 December(Tuesday)

Use your leave strategically, by adding two days before or after Thaipusam, to stretch your weekend. Alternatively, you could add one day’s leave in December to get a four day weekend if you prefer to save your leave for the year end.

When you enjoy those additional days off, instead of just flooding Kuala Lumpur city centre with traffic while those based in the city continue to work, here are a few suggestions to enjoy your exclusive Selangor public holidays.

Batu Caves

What better time to visit the Batu Caves than the Thaipusam festival itself. It is open to everyone and is not exclusive to Hindus. Take a walk up the steep
272 stairway
 and witness the
different types of kavadis
 being carried up to the temple during the festival.

Besides carrying kavadis, some of the devotees even carry out their vows by piercing their cheeks or tongue. The wonder of it all is, there is no blood shed during the piercing or removal of the piercings from their body. While it paints a gruesome image, seeing it first hand on how this holy gesture is carried out, will open your eyes to a whole new cultural experience.

If crowds are a little too much for you to deal with, drop by Batu Caves during one of the other Selangor public holidays after the festival. It is still a beautiful place to visit, even without the festival. Millennials would call it a very Instagram worthy place.

Kanching Waterfall

Instead of spending more time in another building, filled with people, crazy shoppers, lots of unhealthy food and stressing yourself out while hunting for a car park, hit the outdoors for some fresh air and be amazed by nature.

Head over to
Kanching waterfalls in Rawang
, for a cold and wet adventure. It is situated 208 metres high and It is divided into seven tiers. According to a story in the Star Online, the first three tiers are fairly easy to climb. The fourth tier onwards gets trickier but is worth the trouble. Clean, beautiful water and nothing but fresh air awaits you at the top of it all.

When you make your way back down, there are food stalls, ice cream carts and other facilities for you to change into a nice dry set of clothes. The entrance cost between RM1 to RM3, and is opened from 7am to 7pm on a daily basis.

Make sure your trip does not coincide with the monsoon season which begins late May till the end of September. The rain could raise the waters and make it a slippery and dangerous hike. Fortunately, two out of the three Selangor public holidays, fall outside the monsoon season and would be prime time for a waterfall adventure.

Firefly Watching

Take a drive down to Kuala Selangor to check out some bugs at night. Fireflies are far more beautiful than bugs are given credit for. These fireflies light up the trees along the river, giving the scene, a very tranquil and peaceful feeling.

You will cruise down the river in a sampan but not to worry, you won’t have to paddle your own sampan as there are people to steer the small capacity motorised boats. Sometimes they cut off the motors and row the boats, giving you a close enough experience to being in a gondola, minus the romantic singing of course. They row the boats to keep the noise levels low, to ensure the fireflies are not scared off.

Again, be sure to avoid monsoon season as the water levels may be high and the constant rains keeps most of the fireflies away. According toKuala-Selangor.com website, it cost RM40 for four passengers at the Kampung Kuantan jetty.

Fancy Homestay

If you think you are going to need a lazy day after all the hustle and bustle of your daily work life, look for a change in living environment. Get your family and friends together, rent a luxurious feeling accommodation, where you can just relax by the pool, order in food or have a close knit barbecue session.

The venue would cost approximately RM350 or more, depending how big a space you are going to need. According to
sini.com.my
, Villa Rimbun Desa in Sungai Buloh, Selangor starts at RM300 for a 2 bedroom unit, private swimming pool and an additional RM50 charge for barbecue facilities. Of course you will need to do your own shopping for food, but split the cost amongst a few people and it shouldn’t cost more than a hundred ringgit each.

Beyond the Borders of Selangor

If the scenes in Selangor aren’t quite living up to your expectations, then maybe you need a different environment altogether. With an extended time frame, you could pick overseas destinations. If you like the cold weather, this would be a good time to head up north. The China winter season will give the countries up north cooler temperatures as well. This season tends to be a little pricier than normal, therefore you should maximise your returns with a good travel credit card. Some cards give you even better discounts on hotels and free access to the premium lounge and travel insurance. Use the
comparison feature
 so you can feel confident with your application and your next holiday will give you maximum value.

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Binance Announces Measures In Malaysia Following SC Action

Binance has finally announced that it will be taking several measures in a move to remain compliant with local regulations, just one business day before the 16 August deadline set by the Securities Commission of Malaysia (SC).

Following the
SC’s stern enforcement actions
 at the end of July, the world’s biggest digital assets exchange (DAX) has announced that it will cease the following products and offerings in Malaysia:

MYR trading pairs
MYR payment options
P2P merchant applications
P2P MYR trading pairs

The cessation of the first three products and offerings will take place on 16 August at 12pm, while the P2P trading pairs in MYR had a much shorter heads up – it has already been suspended by Binance at 9pm local time.
However, despite the removal of P2P MYR trading pairs services, several P2P merchants appear to continue offering their services at inflated rates at the time of writing.
 (Update: The listings have been removed.)

Effectively, Binance has closed all first-party avenues for users to invest/use Malaysian Ringgit in any form on Binance. Similarly, current Binance users will not be able to withdraw their investments into MYR through Binance – they may still do so via transferring their tokens into other exchanges.

Besides the three measures mentioned above, some users have pointed out that the Binance app is no longer available on both the
Google Play Store
 and Apple App Store. Finally, the statement also clarifies that Binance does not operate any Telegram channel or online communication channels in Malaysia, and ends it with a willingness to collaborate with local regulators.

The Binance website and apps continue to be operational at the time of writing.

(Source:
Binance
)

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Pang Tun Yau

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A seasoned tech journalist who now focuses on his other passion, Pang is a firm believer in old-school DCA and optimised spending.

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    Cz b

    2 years ago

It’s interesting why all governments are trying to ban crypto all of a sudden… Coincidence??

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Things You Do That Can Make Your Motor Insurance Premium Expensive

Most of us are already tied down with multiple financial obligations, so why add to it unnecessarily? There are some things that you may be inadvertently doing without realising that they’re costing you more money on important matters – such as your motor insurance.

Here are some of the things that can cause your motor insurance premium to be more expensive than it should:

Not Renewing Your Motor Insurance on Time

Renewing your motor insurance way after it’s expiry date can result in penalties and higher insurance premium. This is because insurers will see you as a high-risk driver because you’ve been driving around without a motor insurance coverage.

To avoid this, set a reminder for next renewal at least 2 weeks before your motor insurance expiry date. This gives you enough time to prepare for the renewal or shop around for a better motor insurance product.

Having a High Claim Record

Having a motor insurance policy does not mean you should claim from it every single time you get into an accident. Insurers will look at your claims history before renewing your motor insurance, and if you’ve been making too many claims in the past – especially if the fault was yours – you will end up with a higher premium than the previous year.

It’s also worth mentioning that the insurers will be looking at your claims history as a whole, so whether the claims were made with them or with a different insurer, the result is most likely the same. Claims system shared by insurer.

What you
can
 do to maintain a good claims history is to avoid making frequent, small claims and only claim for repairs that you cannot afford to pay on your own.

Living in a High-Risk Neighbourhood

Where you live matters when it comes to ensuring a lower price for your motor insurance premium. If you’re wondering why, it’s because insurers will view some areas with higher statistics of car accidents and vehicle thefts as a high-risk factor.

Areas in the city are often deemed as high-risk locations, while the suburbs and the rural areas are seen as low-risk locations due to the low number of car accidents and theft. We know, moving out just for the sake of getting a lower motor insurance premium rate is a little ridiculous.

But, if you
are
 thinking of relocating, this can be one of the factors that you should consider before settling in a new area.

Holding a Poor Driving Record

It only makes sense, the more speeding tickets, summonses, and traffic violation records issued under your name, the higher your risks are as a driver. This, in turn, causes your motor insurance premium to skyrocket when compared to a driver with a clean driving record.

Now, more than ever, is the time for you to be more responsible and conscientious when on the road. Not only you’ll be safer, but you’ll also be saving more in motor insurance premium in the long run!

Driving a High-Performance or High Theft-Prone Car

Unsurprisingly, insuring a high-performance car such as a sports car can be a costly affair. The reason is simple, high performance car has higher risk – which results in a higher premium.

Another factor that can sky-rocket your motor insurance premium is if you own a high theft-prone car. Some cars are more appealing to car thieves as they’re easier to sell to the masses, and if your car is one of targeted vehicles, chances for the insurance companies to hike up your motor insurance premium is quite high.

According to PIAM, an average of 60 vehicles get stolen every day in Malaysia, making us the sixth country on the world’s top car theft list
. It’s not a very comforting statistic, but it’s useful information for you for when you’re considering your next vehicle purchase.

Of course, if you like driving a high-performance car and you can afford the insurance premium then by all means, enjoy your ride. But if you know that it will only damage your finances in the long term, opt for a cheaper – albeit safe – car instead and enjoy more affordable premium for the years to come.

Not Compare Motor Insurance Prices Before Buying

Blindly accepting a motor insurance quote without shopping around could be costing you a lot of money. With the de-tariffed market, insurers are now free to quote motor insurance premium prices according to your driver’s risks and your selected coverage.

Before buying a motor insurance policy, take some time to assess the available products in the market and determine which and the sufficient amount of coverage you need. Once you have an idea of what and how much coverage you prefer (and need), start comparing quotes for similar coverage motor insurance policies and choose the one that suits your needs and budget best.

Time to Improve!

Have you been doing any of the above? Now is not too late for you to improve your driving habits (and perhaps even plan a wedding?) to enjoy lower motor insurance premium rate! It also helps for you to choose insurers that have a long-standing track record and are trusted by the Malaysians. Take a look at the
Private Car Insurance
 by RHB Insurance and see what they have to offer!

Do you agree with this article? Share your thoughts and what you think Malaysians can do to help lower their motor insurance premium in the comment section below!

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AmBank To Consider Targeted Moratoriums Once Automatic Moratorium Ends

AmBank has stated that it considers a second blanket automatic moratorium unwise – but is open to the possibility of targeted moratoriums once the ongoing six-month moratorium ends at the end of September 2020.

“The question is whether we should do a same kind of (blanket) moratorium again,” said AMMB group CEO Datuk Sulaiman Tahir. “We don’t think it is wise to do so, if at all we should (only) be looking at certain groups of people who would be needing it.”

Datuk Sulaiman said that the environment is quite different pre- and post-movement control order (MCO), with banks being in a good position to help customers who have been affected after MCO. “Some businesses are telling us that they don’t need the moratorium anymore and they are commencing repayments as normal since business has picked up,” he added.

(Image: NSTP)

This follows shortly after
Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz
 has commented that banks will have the final say in extending the current loan moratoriums – as well as whether they would be done in a targeted manner. Tengku Zafrul commented while the current moratorium is helping everyone, the best way forward would be to focus on targeted groups who need help.

Earlier on Friday, Maybank was the first bank to come forward and announce that it will not be extending its current automatic period when it ends in September.

(Source:
The Star
)

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HSBC Exits Retail Banking In US To Focus On Asia

HSBC has announced its withdrawal from the United States domestic mass market retail banking business, agreeing to sell and wind down parts of the money-losing business in the US. The move is viewed as part of the banking group’s long-awaited plan to focus more closely on Asia, its biggest market.

In a statement, the bank said that it would exit retail banking for most individual and small business customers, but retain a small physical presence in the US to serve its international affluent and high-wealth clients.

(Image: Finance Brokerage)

Earlier in February, HSBC had revealed a revised strategy that focused mainly on wealth management in Asia, stating that it was exploring organic and inorganic options for its US retail banking franchise. The London-headquartered bank has also been looking to step back from sub-scale markets and businesses as part of group CEO Noel Quinn’s strategy that involved slashing costs across the banking group. HSBC is also looking to sell its French retail banking operations, having entered final negotiations to sell the business to private equity firm Cerberus.

The bank’s US wealth and personal banking business made a loss of $547 million in 2020, versus a $5 billion profit in Asia – primarily from Hong Kong, its most profitable market. Meanwhile, its global banking and markets division, which includes its investment banking and large corporate businesses portfolios, made a profit of $572 million in the US in 2020.

(Source:
Reuters
)

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TikTok Shop Is Now Live In Malaysia

(Image: Digital News Asia)

TikTok has officially rolled out its e-commerce platform, TikTok Shop, to its general users in Malaysia, allowing them to now shop in-app. This is expected to bridge the app’s creators with potential buyers, as well as vice versa.

With this, you’ll be able to discover products as you browse or share content within TikTok; items will be recommended to you based on your interests. You can then shop directly via product anchors that are embedded in the videos and livestreams of merchants’ TikTok pages, as well as through their Product Showcase tab (found in their profile page). Alternatively, you can also use the search bar in the Discover section to help you find specific products.

TikTok said that it will also run campaigns and sales promotions on the platform to generate greater awareness for its latest feature. Among some perks that you can gain from these TikTok Shop campaigns include free shipping and discount vouchers; existing customers can enjoy up to six free shipping vouchers per month, while new customers will get an additional voucher as well.

On the other end of the continuum, TikTok also remarked that it expects TikTok Shop to benefit small and medium enterprises (SMEs) who have yet to set up physical stores due to the high initial costs. “We hope that TikTok will help shape the e-commerce space in Malaysia and encourage more local businesses to maximise opportunities to engage with their customers and drive business results on TikTok Shop,” said the strategy operations manager of TikTok Malaysia, Darren Quek.

Quek further highlighted that TikTok Shop will enable SMEs to tap into the benefits of a community-centric approach, where they can showcase their creativity through videos, connect with their audiences, and consequently boost their sales. SMEs will also be able to manage their businesses completely from within TikTok, including the uploading of products, point of purchase, shipping, and fulfilment of orders.

In conjunction with the upcoming Raya festivities, TikTok Shop is launching its Raya Sales campaign for users – running from today until 30 April 2022. Shoppers will be able to enjoy free shipping vouchers, discounts of up to 99%, and other discount coupons.

(Sources:
Lowyat.NET
,
Digital News Asia
)

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Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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OCBC Updates FRANK By OCBC Mobile Banking Solution To Enable Digital Onboarding

OCBC Bank customers are now able to digitally sign up for the bank’s FRANK by OCBC service, without having to step foot into a physical branch. This is following the latest update to the mobile-first banking solution, which sees it now equipped with electronic Know Your Customer (eKYC) features.

Developed together with credit reporting agency CTOS Data Systems, OCBC said that the eKYC platform will allow customers to apply for a FRANK account and have access to its functions within minutes. This convenient onboarding experience, in turn, will make FRANK by OCBC even more appealing to individuals who are looking for a cutting-edge and secure banking product.

“We are constantly on the lookout for digital banking solutions that make things simpler, faster, and more convenient for our customers – without compromising on security. Now that we are onboarding customers remotely, they will only need to snap a photo of their MyKad, and then provide verification by uploading a selfie during the process,” said the managing director and head of consumer financial services for OCBC, Anne Leh, adding that this convenience is key in addressing customers’ digital banking needs.

The chief executive officer of CTOS Data Systems, Eric Chin also chimed in on the ease of use and safety offered by the fully digitised FRANK by OCBC service. “Powered by CTOS eKYC, OCBC Bank customers now have easy access to account opening services, remotely and safely,” he commented, adding that the eKYC feature is crucial in meeting customers’ demands for a next-generation core banking solution.

OCBC first
launched FRANK by OCBC back in September 2020
 as a mobile-first digital banking solution that provides greater personal control over an individual’s finances. A key element of its appeal lies in the Save and Spend Pots, where customers can enjoy the flexibility of a savings account even as they earn higher interest rates through their savings. Aside from that, FRANK by OCBC also offers several financial management features – such as Money In$ights, an improved expense tracker – and does not charge foreign exchange mark-ups when customers perform overseas transaction or spend in foreign currency while making online purchases.

(Source:
OCBC
)

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Double Prosperity with Mid Valley Mega Mall and Visa Credit Cards

Celebrate Chinese New Year in Style and Win Prizes

Going to
Mid Valley Mega Mall
 to do your shopping over the festive season? Spend on your Visa Credit Card and you could win one of 200 Daily Voucher prizes or 200 Mystery Gifts.

Just visit the Visa Gift Box on the Ground Floor South Area and redeem your preward before you start shopping and you’ll be in to win an iPad, Sony Bravia Full LCD TV, Dinner for ten or a complete family makeover.

Terms and Conditions apply.

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Ways to Stretch Your Ringgit When Travelling Solo

Even though travelling with friends and family is a lot of fun; there are times when you’ll feel the need to go it alone. And why shouldn’t you?

There’s much to love about travelling by yourself: you get to make your own time, and independently discover new places. Still, many holiday promos seem to ignore the scrappy breed of solo travellers.

Certain travel destinations as well are notoriously unfriendly budget-wise, for those travelling alone. There is also the inability to split room or cab costs leaving the solo traveller to foot the entire bill themselves.

Nevertheless, there are many ways to get around these expenses. In fact, you can go anywhere you want and still #GetMore value for money on your vacation for one. We’ve compiled insider information to help you holiday solo without breaking the bank.

Buy Air Travel Passes

If you’re flying to your destination and exploring several places within the region, you may need to fly a few times and that can be fairly expensive. Instead, just purchase an air travel pass so you can fly to various locations for a lot less.

For instance,
Air Asia
 introduced such a programme, which lets you fly around the ASEAN region on credits purchased. Even though this programme only covers base fares (not inclusive of airport taxes), it’s still cheaper. Moreover, designated credits for each flight destination will remain even though airfare has changed, so you won’t be affected if there is a price increase.

Check online to find similar air passes that are available for flights in different parts of the world.

Use Accommodation Alternatives to Hotels

Can’t take a shared room with a partner or buddies to fraction the cost? No sweat, frugal accommodation is still possible!

Hostels

Hostels make good accommodation for the budget-conscious solo traveller who is willing to share a room with other travellers in a dormitory setting. Sounds severe but it is really not so bad, as the experience is a rather communal one.

Plus the price can’t be beat; you can enjoy decent lodgings in major cities, while still not blowing your travel savings even when converted to ringgit.

For instance, you can stay in Berlin for only €19 (approximately RM95) a night in a basic shared room, private rooms are available but costs a little more.

Check out the Travel Channel’s top picks for
comfortable, budget-friendly European hostels
. In addition,
hostel travel cards
 can provide more discounts for shopping, dining and even flights.

Homestays, Couchsurfing and AirBnB

Homestays are a type of accommodation where you can rent a room with a local family for a short period. It’s a great option for solo travellers because it does get lonely out there and you’ll need company at some point.

Costs can be tailored to your budget, for example from a quick search on
Homestay.com
; we found that you can enjoy basic lodgings from RM89 to around RM500 per night depending on how fancy the lodgings are.

Don’t forget, the locals make the best tour guides. They’ll know about great deals on shopping, food and entertainment. But to be on the safe side, always check that your host is verified first.

You can also check out sites like
Couchsurfing
 where you can get someone’s spare couch for free or
AirBnb
 for similar homestay style accomodation. You can find out more about
accommodation alternatives in our dedicated article on the topic
.

Eat Good Food for Less

Pay-in-Advance offer sites like Groupon and Ensogo offer discount coupons for meals that can be redeemed within a specified period of time. Because Groupon operates worldwide, you should be able to find sites operating in most major cities you may travel to.

To #GetMore from these promos, look for buffet-style vouchers, as there are fewer limitations placed. Beware of wastage fines though; some restaurants implement a fee for uneaten food (larger amounts, not your scraps and morsels) left on your plate.

Street food is also one of the tastiest ways to sample local cuisine for cheap; it’s basically just an alternative to hawker-style foods in Malaysia. Street food is an excellent choice for the budget conscious traveller who in any case prefers to see the sites, hotdog in hand rather than behind the glass of an overpriced restaurant.

Whether you’re travelling to Thailand or New York, there’s bound to be a designated ‘eat street’. A little research will help you source out the best places to indulge your traveller’s tummy.

Sites like
Rough Guides
 will point you in the right direction for tasty, value-for-money eats.

Seek Out Free and Discounted Attractions

Credit cards
 can provide great discounts and deals when buying tickets for amusement rides and theme parks. Try calling your bank for suggestions and if there aren’t any relevant deals, research other cards to see if there are special offers and benefits that you’re missing out on.

Sponsored freebies like free movies and concerts are often available in major cities and townships. Additionally, attending community events like parades, carnivals and cook-outs are a great way to get in on the fun and sample local food for cheap (or even free).

Tourist travel cards can also be the best ways to get to know your destination city and at the same time, stretch your travel funds. Purchase one to obtain discounted or complimentary admission into museums and cultural venues as well as unlimited access to public transport.

Exchange Enough Currency and Budget Well

When on your own, there isn’t the safety net of friends, family or a partner with money should you run dry suddenly. This means it’s more important than ever to have enough local currency to get on.

It’s also important to budget per day spending as sometimes, even the most ample of funds can drain out if you are not careful with your spending.

Safe and Solo

When travelling alone, safety has to be of primary concern. Your internet–enabled smartphone can be the most powerful tool in your arsenal, so you’ll need to keep it connected (and charged, duh!). Here are some tips for getting affordable internet service when you travel:

Buy pre-paid mobile internet from a local carrier in your holiday destination (data roaming charges can be extremely expensive)

Research before departure to find the best plan for your needs

Use free WiFi as much as possible

Take advantage of free communication apps like WhatsApp and Viber

In addition to being connected, you might want to consider insurance for medical or other emergencies during your holiday. Some of the
best travel credit cards
 will offer free medical and personal accident insurance, as well as cover for travel inconveniences and stolen belongings while you travel.

As you are going solo, it pays to be prepared for the bad and good. Have all your emergency contacts on speed dial (roaming may be expensive but your life is priceless); keep emergency travellers’ cheques and an empty credit card for financial emergencies and if possible – check out the numbers for local emergency services in your destination country such as the police, fire department or hospital. Godspeed, you may not need it but it helps to have it.

Lastly, keep in mind that no matter the discount, if it puts you in dodgier parts of your locale, especially after dark – it may not be worth the trouble. It’s a great holiday experience that really counts, make your voyage even more valuable by simply staying safe.

Now go enjoy that enlightening holiday!

Did you like learning how to #GetMore when travelling solo in this article? Follow our #GetMore hashtag on your favourite social media channels as we bring you more tips on how you can get more for your money in everything from travel to shopping and dining until the close of 2015. Who wouldn’t like to #GetMore for their money?

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4 Signs You Should Definitely Get a New Phone

Mobile phones don’t last forever and there will come a time when you have to let your old phone go and pursue an upgrade. Here are some clear signs your phone should go into retirement, and you should start hunting for a brand new one:

Your Screen Makes You Scream

Whether it’s scratches, cracks, bubbles or cloudiness on your screen, it’s time to get your phone replaced. Not only will you have trouble reading what’s on the screen, you probably won’t be able to type or swipe easily either.

The worst scenario would probably be water damage, where your screen will be rendered completely dysfunctional most of the time. Also, if you have a touch screen and it no longer responds to you, whether fully or parts of it, then you know it’s time.

Your Battery is a No Go

Normally healthy batteries have a capacity to last between 10 to 20 hours. If you have to run around looking for a plug point to charge your phone every few hours, something is up.

A phone’s battery capacity fades with age, and if your phone is more than 5 years old when this problem pops up, a visit to the repair shop won’t really help for long. So, you should consider a more permanent solution.

Your Apps Don’t Work Right Anymore

If the rest of your phone works fine, but particular apps aren’t working quite right, then it might be your phone that needs replacing. Apps are constantly updated to include the latest features which can use up more resources than an aging phone can keep up with.

In fact, some newer apps may not even be compatible with your device anymore if it’s old enough. When you find that your essential everyday apps are getting wonky, you know it’s time for an upgrade.

That Annoying ‘Insufficient Space’ Message

If you get a pop-up telling you your phone doesn’t have enough space whenever you want to store pictures, download songs or save files, it’s a sign that your phone isn’t built to take on much data. Which can only be solved with an upgrade, unless your phone uses removable storage like e microSD card.

Having not enough space for digital items also means that your mobile isn’t keeping up with your lifestyle, and you should upgrade to one with much more storage space for all your favourite things.

There are actually plenty of affordable mobile phones nowadays. If you’re looking for one mobile phone that comes with a communications provider contract, we have the ultimate
comparison chart
 to help you choose the best products available.

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How Do You Choose the Right Loan for Your Small Business?

Taking up the wrong loan could be detrimental to your business. Not only can it lead you to more debt if your business can’t keep up with the monthly payments, it might even damage your business’s finances and reputation if you end up defaulting on your small business loan.

Of course, these two scenarios can be avoided if you manage your finances properly and choose the right financing to help boost your business. Here’s a checklist that you should go through before you start applying for loans to make sure you get the best financing solution for your business needs.

Decide Exactly How Much You Need

Detailed planning and careful calculations are very important to ensure you get the right loan amount. Taking too big a loan may take your business a long time to pay it off, adding unnecessary interest payments. If in the future you need a second loan to fund a different acquisition, your financial standing may be affected by an existing loan.

However, taking too small a loan will have you going through the tiresome process all over again, all too soon. So, when planning your finances, think long term.

Estimate the costs of expansions, daily operational, and different aspects of the business that will require cashflow to keep the business running before it turns a profit, and
then
 scribble the amount of loan you need for your business in your loan application form.

Choose the Loan with The Best Interest Rate

Getting the best interest rates may take some effort and time, but they’ll be well worth it when you can save from having to pay high interest rates. Don’t just walk into your current bank and hope that being loyal will give you the best rates. Instead, visit a few banks and find out the best interest rate you can get.

You can even go on online comparison websites and compare the business loans offered to find the one with the best interest rate for your business.

Find Out the Fees & Charges

Here’s where it can get a little tricky. Once you have compared and attained the best interest rate, you also have to look out for the (hidden) fees and charges that may affect your monthly instalments, or should you want to settle your loan early.

Some loans do come with a processing fee or an early settlement fee that would affect your final standing. On top of the interest rates, be sure to look into the fine prints for any charges that may creep on you – such as account maintenance charges.

Which Loan Term Suits You Best?

There are different kinds of SME loans made available for different purposes. That is why banks such as
RHB Bank offers various types of business loans
 to help finance your business according to your needs.

But, generally speaking, most loans are split into two categories; short-term and long-term loans. Some loan repayments are as short as three to six months, while others can stretch well to twenty years.

The key to knowing which loan term you should choose is by analysing your loan amount and your repayment capabilities in the long run. As a rule of thumb, long-term loans tend to offer high loan amounts at lower interest rates. It’s also usually only open to small businesses that have been operating for at least two years, have a good track record, and often require collateral.

On the contrary, short-term loans often offer lower loan amounts at a higher interest rate, although most of them do not require collateral.

The Best Ways to Increase Your Business Loan Approval Chances

First of all, make sure all your
financial statements and legal documents are in order
. The bank’s first move before approving your loan application would be to evaluate your accounts and other financial documents to ensure your business is in a stable state. This gives them the confidence that you’re capable of paying them back.

Secondly,
paying your taxes is extremely important
. This is how a bank benchmarks your yearly revenue. Ensure all your tax receipts are in order to support your accounts.

If there are any issues or cases against your company,
be honest
 and declare it up front with proper justification to inspire confidence that the company is managing all issues properly. There is no point in hiding information as the bank will find the needle in the haystack. This would discourage the evaluation, as your dishonesty may sway the bank’s perception.

Did you find this article helpful? Head on over to
RHB’s SME Knowledge Centre
 to access more tips and articles on how to manage and make better decisions to help boost your business!

This article was brought to you in collaboration with RHB SME Banking.

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How Will The New Petrol Subsidy Affect You?

*UPDATE 11 OCTOBER 2019:
During the tabling of Budget 2020 which came a week after the new targeted subsidy scheme was announced, Finance Minister Lim Guan Eng revealed that non-B40 Malaysians will also be eligible for the petrol subsidy. This article has been updated to reflect that.

***

On 7 October, the long-awaited petrol subsidy was finally
announced
 by the Minister of Domestic Trade and Consumer Affairs, Saifuddin Nasution Ismail. Effective early next year, the scheme will entitle eligible car owners to a subsidy of RM30 per month and motorcycle owners to a subsidy of RM12 per month.

First announced as a subsidy targeted only at the lower-income B40 group who are recipients of Bantuan Sara Hidup (BSH), Finance Minister Lim Guan Eng later revealed during the tabling of Budget 2020 on 11 October that non-BSH recipients will
also be eligible
 for the subsidy. The amount of subsidy provided is the same, but the methods of distribution will vary between the two groups.

Who is eligible for the new petrol subsidy?

Both recipients of the BSH living aid and non-BSH recipients will be eligible for the petrol subsidy as long as they fulfil several additional requirements. For starters, only residents of Peninsular Malaysia who own a private vehicle are eligible. Those who have more than two cars and two motorcycles under their name will not qualify for the subsidy. Furthermore, the vehicle(s) must match the following criteria:

Cars with an engine capacity of 1,600cc and below

Cars with an engine capacity over 1,600cc but 10 years and older

Motorcycles with an engine capacity of 150cc and below

Motorcycles with an engine capacity over 150cc but 7 years and older

(Source: Ministry of Domestic Trade and Consumer Affairs)

Although individuals with more than one car or motorcycle to their name are still considered eligible, they will only receive a maximum of RM30 or RM12 per month (whichever is higher) and not be entitled to any additional amounts for their multiple vehicles.

According to the Ministry of Domestic Trade and Consumer Affairs, the criteria for the subsidy is based only on data from the Road Transport Ministry and BSH. It will not draw on any data from Tenaga Nasional Berhad (TNB). This quashes the earlier statement made by the
Deputy Minister of Domestic Trade and Consumer Affairs Chong Chieng Jen
, who mentioned that electricity bills would be used as a factor for determining eligibility.

BSH recipients can check their eligibility for the petrol subsidy scheme on the
Ministry of Domestic Trade and Consumer Affairs website
 from 15 October 2019.

How does the petrol subsidy work?

For BSH recipients, the petrol subsidy will be automatically credited into the eligible recipient’s bank account every four months. As the programme kicks off on 1 January 2020, the first subsidy payment will be for the months January to April, amounting to RM120 for car owners and RM48 for motorcyclists. Those who are not in the B40 group will receive their petrol subsidy via the new Kad95, which will be introduced in stages from the first quarter of 2020.

If you’re curious as to how the government has determined the subsidy cap at RM30 and RM12 per month respectively, here’s the rationale behind it. The government will provide the petrol subsidy at a rate of 30 sen per litre, which is within the current range of subsidy offered to the public thanks to the price cap. However, each recipient under the new scheme is limited to a monthly quota for the subsidy, which is 100 litres for cars and 40 litres for motorcycles – hence the cap of RM30 and RM12 per month. According to the ministry’s website, this allowance is allocated based on studies regarding the average distance journeyed by Malaysians for the purposes of work and necessities – 1,500km per month or 50km per day.

Interestingly, the FAQ on the ministry’s website also addresses what will happen to the petrol subsidy if the price of RON95 dips to below RM2.08/litre. According to FAQ, the subsidy will
not
be given if the RON95 price is below RM2.08 per litre. It states that the objective of the subsidy is to provide assistance when the petrol price is high, so the subsidy should not be given when the petrol price is reasonable. However, given that the subsidy for B40s is distributed three times a year in four-month allowances, it would be interesting to see how the government plans to enforce this rule.

RON95 petrol price to be floated weekly

Once the subsidy is rolled out next year, the government will remove the current cap on RON95 fuel which has been keeping its price at RM2.08 per litre. The price of RON95 petrol will be determined in reference to global oil prices instead.

The direct effect of this will be that the petrol price of RON95 is likely to go up. Minister Saifuddin Nasution Ismail has stated that the lifting of the price cap will be done in “gradual” stages, but it is uncertain how exactly this will be carried out come 2020. This also means that the price of RON95 will be subject to a weekly price float in order to reflect the current market prices, similar to the RON97 fuel currently.

What about East Malaysia?

At present, the government is offering the petrol subsidy to Peninsular Malaysia residents only. BSH recipients in Sabah, Sarawak, and Labuan will not be entitled for the petrol subsidy scheme. Instead, the government will continue capping the RON95 fuel price at RM2.08 per litre for all residents in East Malaysia. According to the Ministry of Domestic Trade and Consumer Affairs, the government had taken into account the needs of East Malaysians who mostly use large-capacity engines or diesel-fueled vehicles. Presumably, this would render a majority of East Malaysians ineligible under the requirements of the petrol subsidy scheme.

However, at the tabling of Budget 2020, Lim Guan Eng said that should the Sabah or Sarawak state governments like to participate in the subsidy, the federal government would be ready to accept the request.

Bracing for impact in 2020

Since it was announced that the subsidy would be available to those outside the B40 group as well, the impact of the new scheme is not as drastic as when it was first announced. However, the government’s corresponding move of removing the price cap on RON95 fuel still stands. Consumers may still need to take some time to adjust to any chain reactions that could occur once the price of RON95 is floated.

“Assuming the global oil price stays high next year, that will impact the country’s inflation because petrol consumption carries about 8% in calculating the consumer price index,” said Socio-Economic Research Centre (SERC) executive director
Lee Heng Guie
. “RON95 is the most widely used petrol and when its price is floated, the petrol price will go up and this will impact the inflation rate.”

Therefore, come 2020, consumers may do well to prepare themselves for the chain effects that may arise as a result of the changes in petrol price. At the very least, all petrol users (in West Malaysia) will have to get used to
checking the petrol prices
 every Friday once more. And if you haven’t already gotten yourself a reliable
petrol cashback credit card
, now is probably as good a time as any to apply for one.

(Source:
Ministry of Domestic Trade and Consumer Affairs)

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Easy Arm Chair Shopping with Bank Islam

Bank Islam is now making it easier for you to shop for watches, jewellery and other knick-knacks from the comfort of your home. Check out the
online catalogue
 and take your pick. Choose from Bello and Beo Make-up Cases, Philippe Renault Watches, Vissa Jewellery and more.

All items have been discounted and there is even an easy payment scheme for larger, more expensive watches (items RM600 and above).

All you need is a Bank Islam Credit Card. Make your choice, mark the items and send the form back to Bank Islam. The payment will be charged straight to your credit card; no fuss.

Items will be delivered within 2-4 weeks. Validity of promo is while stocks last.

For more info, you can refer to the
catalogue
. Delivery charges vary depending item. Please refer to fine print.

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Bursa Digital Research: PNB Top Institutional Seller On Bursa Malaysia In 2Q22

(Image: The Malaysian Reserve)

A data report by Bursa Malaysia’s research portal, Bursa Digital Research has revealed Permodalan Nasional Bhd (PNB) to be the top institutional seller on the local bourse in the second quarter of 2022 (2Q22). Its outflow is reported to have increased quarter-on-quarter, from US$230.6 million (about RM1.09 billion) in the previous quarter (1Q22) to US$605.9 million (approximately RM2.87 billion) in 2Q22.

“The top three institutional sellers on Bursa Malaysia were PNB at US$605.9 million, Principal Islamic Asset Management Sdn Bhd at US$43.2 million, and Candriam Belgium S A at US$34.5 million,” said the digital platform in a note.

Meanwhile, the Employees Provident Fund (EPF) was named as the top buyer on Bursa Malaysia, with purchases of US$373.9 million (approximately RM1.77 billion). It is followed by BlackRock Fund Advisors from the United States at US$62.7 million (approximately RM296.6 million) and the Vanguard Group at US$56.9 million (approximately RM269.1 million).

The portal also highlighted that cumulative capital outflows – defined as the total movement of assets out of a country – from nine government-linked investment companies (GLICs) in the domestic market had tapered off significantly from US$633.9 million in 1Q22 to US$198.2 million in 2Q22. This is as the EPF and Retirement Fund Inc (KWAP) have turned net buyers; the remaining seven GLICs are PNB, Amanahraya Investment Management Sdn Bhd, Khazanah Nasional Bhd, Lembaga Tabung Angkatan Tentera, Lembaga Tabung Haji, Pertubuhan Keselamatan Sosial, and PMB Investment Bhd.

Aside from these details, Bursa Digital Research’s report also revealed the trend of capital flow by industries – including the consumer goods and financial industries – and by companies. It tracked the capital flow from institutional investors (ex GLICs) as well, noting that while this segment continues to record an inflow instead of outflow in 2Q22, it slowed from US$132.57 million to US$98.88 million. This is as Principal Islamic Asset Management Sdn Bhd had turned net seller.

Bursa Digital Research
 is a “multi-faceted research portal” that was launched by Bursa Malaysia at the end of 2021. It is intended as an additional resource for investors to gain market insights and keep abreast of the latest developments in the stock market, and complements the Bursa Broadcast platform to enrich investors’ capital market understanding.

(Source:
Bursa Digital Research
)

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Alex Cheong Pui Yin

Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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Economic Analysts Predict Another OPR Cut

(Image: The Star)

Economic analysts have predicted that Bank Negara Malaysia (BNM) may introduce another overnight policy rate (OPR) cut this year. This is due to expectations of a slower global economic growth brought about by the Covid-19 outbreak.

RHB group managing director and chief executive officer, Datuk Khairussaleh Ramli, said that further cuts are possible because the business outlook for year 2020 remains challenging.

CGS-CIMB Equities Research, on the other hand, predicts that the OPR cut will be implemented tomorrow, down by as much as 25 basis points.

(Image: The Malaysian Reserve)

OCBC Bank economist, Wellian Wiranto, also shares a similar sentiment. He said that in spite of the introduction of the
Economic Stimulus Package 2020
, the Malaysian economy will still need all the help that it can get, given the recent political instability within the country.

JP Morgan, too, anticipates an OPR cut soon, as BNM is likely to depend on both fiscal and monetary support to boost Malaysia’s economic recovery. The global financial services firm based its claim on a similar strategy adopted by the central bank during the SARS outbreak in 2002-2003.

Affin Hwang Capital and Kenanga Research both foresee a rate cut tomorrow as well.

TA Research further says that even a 50 basis point-cut is possible, citing bleak economic prospects, weak sentiment, and low inflation as reasons.

(Image: UOB Glassdoor)

UOB, in contrast, believes that the OPR will remain unchanged for now. However, if the country’s economy continues to be threatened by prolonged threats of the outbreak, further OPR cuts will be likely.

Prior to this, the Monetary Policy Committee (MPC) of Bank Negara Malaysia (BNM) had already
reduced the OPR once by 25 basis points in January 2020
, bringing the rate from 3.0% down to 2.75%. Banks subsequently responded to it by lowering their own
base rate (BR) and base lending rate (BLR)
.

(Source:
The Edge Markets
,
The Star
,
The Sun Daily
)

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Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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HSBC cardholders get unbeatable deals at the Northam, Penang

If you’re an HSBC credit card holder, you might want to consider at trip to the Pearl of the Orient sometime, as you’ll
enjoy exclusive rates and privileges at the prestigious Northam All Suite hotel on the island.

The Deluxe Suite is available to you at only RM255++ (rack rate: RM1050++) while the Junior Suite is going for RM215++ (rack rate: RM750++).

Additionally, you’ll also get complimentary covered car park space, unlimited usage of high speed Internet, as well as access to the gymnasium and swimming pool for the duration of your stay.

And it gets better, especially if you’re a foodie, with 20% discount on the a la carte menus at F&B outlets and 20% off dim sum at the Taipan Fins Chinese Restaurant. Take advantage also of the 15% discount at the Samsara Suite Spa to rejuvenate your body and mind.

Promotion is valid till 31 December. Do take note though that it is not valid on Fridays, Saturdays, eves of public holidays, public holidays and school holidays, as well as the Hari Raya (7 to 12 August 2013 ), Christmas (24 to 28 December 2013) and New Year (31 December 2013) holiday seasons.

Offers at the hotel’s F&B outlets are not applicable with the purchase of alcohol or tobacco, too.

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Boost E-Wallet Now Lets You Pay For Parking With Your Smartphone

(Image: Digital News Asia)

As adoption of cashless transactions in Malaysia continues to grow, a local mobile wallet is making parking payment more convenient. Boost, a mobile wallet developed by Axiata Digital, has announced a useful new feature that enables its users to pay for parking using the Boost e-wallet app.

The company will be collaborating with Dewan Bandaraya Kuala Lumpur (DBKL) to implement the solution on DBKL’s car parks in Kuala Lumpur, with an expected roll out from July. The Boost app can be used to pre-pay for the number of hours users plan to park. The app will notify users when their parking time has expired. From there, they have the option to pay for more parking time or take their cars and leave the space. Since everything is contained within the app, users no longer need to look for a parking machine.

While there are apps like JomParking that allows users to pay for parking with their smartphones, this is the first time than an e-wallet is offering this option. And since its partnership is currently only with DBKL, this payment method is only limited to DBKL-managed car parks only. It is likely that large adoptions for this payment method may see more partnerships with other operators.

(Image: Soyacincau)

Besides that, Boost also announced two more transactions that can be done with the Boost app. The first is the ability to donate directly to funds like Tabung Harapan and Tabung BERSAMAMU, while the other enables users to make payment for utility bills such as TM, Astro, and Syabas. The rollout for these features, however, will happen at a later date.

(Source:
Digital News Asia
,
Soyacincau
)

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Top Glove, MR DIY Bosses Break Into Forbes Malaysia’s Top 10 Richest List

Image: Forbes

Forbes has released its 2021 Malaysia Rich List, which saw the combined wealth of the 50 richest people in Malaysia rebounding by 14% to nearly US$90 billion this year. In 2021, we see Top Glove joining its fellow glovemaker Hartalega in the Top 10 for the first time, while the MR DIY brothers secured the No. 10 spot as the richest newcomers on the list.

The Top 10 richest in Malaysia as reported by Forbes are:

Robert Kuok; US$12.2 billion
Quek Leng Chan; $9.6 billion
Koon Poh Keong & siblings; $6.4 billion
Ananda Krishnan; $5.8 billion
Teh Hong Piow; $5.5 billion
Lee Yeow Chor & Yeow Seng; $4.9 billion
Kuan Kam Hon; $3.8 billion
Lim Wee Chai; $3.5 billion
Chen Lip Keong; $3.4 billion
Tan Yu Yeh & Yu Wei; $2.7 billion

The No. 1 and No. 2 spots remain unchanged from last year, with property and commodities business magnate Robert Kuok and Hong Leong group’s Quek Leng Chan reprising their positions respectively. Press Metal’s Koon Poh Keong and siblings are this year’s biggest dollar gainers at third place. Usaha Tegas chairman Ananda Krishnan, Public Bank chairman Teh Hiong Piow, and IOI brothers Lee Yeow Chor and Yeow Seng follow.

 Kuan Kam Hon by Forbes
 Lim Wee Chai by Forbes

At 7
th
 and 8
th
 place are the Malaysian glovemakers – Kuan Kam Hon of Hartalega Holdings and Lim Wee Chai of Top Glove. Kuan Kam Hon moved up two spots from the previous year, whereas Lim Wee Chai was at the No. 14 spot previously. Forbes has attributed the reversal in Malaysia’s two-year wealth decline to country’s dominant position as the medical glove maker amidst the global Covid-19 pandemic. Malaysian exports of rubber gloves have doubled and five of the nation’s largest glove producers feature on the top 50 rich list.

Chen Lip Keong of NagaWorld casinos slid down five spots to No. 9 this year and is one of the 19 listees whose fortunes fell as the pandemic took its toll. Another casino mogul that was hard hit in 2021 was Genting’s Lim Kok Thay, who just fell out of the Top 10 to place at No. 11 this year. In the whole 50 richest Malaysians list, seven names dropped out altogether, including AirAsia duo Tony Fernandes and Kamarudin Meranun.

Lastly, entering the Top 10 list at No. 10 for the first time this year are brothers Tan Yu Yeh and Yu Wei of MR DIY. They are the richest of the five total newcomers on the Forbes Malaysia Rich List.

(Source:
Forbes
)

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TNG GO+ Users Surpass 1 Million Mark

Touch ‘n Go (TNG) announced that its recently-launched investment feature, TNG GO+, has achieved an important milestone by surpassing the one million users mark. This was done in a span of just over two months as TNG+ was
first introduced
 on 29 March.

“We are pleased that we’ve been able to get to this milestone in just over two months, and well ahead of our internal estimates,” said TNG Group CEO Effendy Shahul Hamid. “We will now build on this success and add more varied products in this category. We will also be making improvements to GO+ on the back of some very encouraging customer driven feedback and data on user experience.”

According to Effendy, many users found the fungibility function between the GO+ balance and the TNG eWallet use cases very attractive, which led to more sign ups. “Another data point we were also encouraged by is the reach of this proposition and its agendas around inclusion. 73% of GO+users are from outside the Klang Valley, and that number continues to grow,” said Effendy.

Under the GO+ feature, TNG also introduced the
Kawan+ campaign
, which will run until 10 August 2021. The campaign allows referrers to earn a 1%p.a. bonus rate for every GO+ referral they successfully make, with no limit on the number of friends they can invite (although the bonus rate is limited to a maximum balance of RM3,000). Effendy shared that the top three referrers on Kawan+ to date have introduced 154, 133, and 74 referees respectively.

GO+ is TNG’s first step into the area of digital financial services, allowing TNG eWallet users to gain access to low-risk money market investments for as low as RM10. TNG eWallet is also the first e-wallet provider to obtain approval to operate as a recognised market operator by the
Securities Commission of Malaysia
.

(Source:
The Sun Daily
)

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Deputy Finance Minister: Ringgit Should Not Be Valued Solely Through Its Position Against US Dollar

(Image: Bernama)

Deputy Finance Minister I, Datuk Mohd Shahar Abdullah has commented that the value of Malaysia’s currency should not be measured solely by its position against the US dollar, which has been rising as compared to most world currencies. Instead, the ringgit’s actual performance should be determined through a holistic assessment of its position and growth.

The deputy minister stressed that although the position of the ringgit is crucial in ensuring that Malaysia’s economy is performing at an optimum level, it is unfair for its performance to be compared solely to the US dollar. He also acknowledged that the ringgit had declined by 6.2% against the US dollar since early 2022, but noted that this dip is consistent with the general performance of currencies from regional and developed countries, which saw a depreciation of between 2.8% and 16.4% as of 22 July 2022.

“The overall strengthening of the US dollar was driven by the aggressive rate hike in the US, the global risk-off sentiment following the conflict in Ukraine and modest growth expectations in China. As such, the government will continue to manage risks from domestic and external developments, and Bank Negara is also prepared to use its operational policy instruments to prevent significant fluctuations in the ringgit exchange rate,” said Datuk Mohd Shahar.

(Image: Malay Mail/Ahmad Zamzahuri)

Datuk Mohd Shahar further highlighted that Malaysia’s ringgit has actually increased against several other major currencies year-to-date, including the Japanese yen (+12.2%), British pound (+6%), and euro (+4.6%). Similarly, the ringgit also gained against the Philippine’s peso (+3.5%) and Thailand’s baht (+3.3%).

Moreover, Datuk Mohd Shahar said that Malaysia’s economic growth should also be evaluated through several other performance indicators, aside from the strength of the currency. These include retail and wholesale trade, unemployment rate, industrial production, and national trade. “In the second quarter of 2022, all four indicators showed good performance, therefore the overnight policy rate (OPR) was raised gradually, not suddenly like the US where it was raised by 150%,” he said.

Separately, the governor of Bank Negara Malaysia (BNM), Tan Sri Nor Shamsiah Mohd Yunus has also stepped forward to reassure that the performance of the Malaysian ringgit has actually remained relatively stable. This is in comparison with the currencies of other trading partners.

(Image: Bernama)

Like Datuk Mohd Shahar, Tan Sri Nor Shamsiah also pointed out that the US dollar index has increased by 11.5% in 2022 – the highest in two decades. As such, most regional currencies, including the ringgit, have devalued relative to the dollar. “Malaysia’s economic recovery is well underway, and at the same time, the bank will continue to use tools at our disposal to ensure the movement of the ringgit are orderly in an aggressive monetary policy tightening US Federal Reserves,” she remarked.

To note, Malaysia’s ringgit fell to a
five-year low against the US dollar
 last week – at its weakest since March 2017. The US dollar-to-ringgit exchange rate was recorded at 4.4575 at that time.

(Sources: Malay Mail [
1
,
2
])

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Alex Cheong Pui Yin

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Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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Malaysia Poverty Rate Spikes To 8.4% In 2020 Due To Covid-19

(Image: The Malaysian Reserve)

Malaysia’s poverty rate has shot up to 8.4% in 2020 due to the Covid-19 pandemic, revealed economic affairs minister Mustapa Mohamed. In 2019, the poverty rate stood at 5.6%.

These measures of poverty are based on the updated poverty line income methodology of 2019 (
PGK 2019
). Based on this same measure, the poverty line would have been at 7.6% in 2016.

According to Mustapa, the pandemic had caused disruptions to people’s income, leading to many more households being exposed to poverty. This is especially for those in the B40 and most vulnerable categories. However, said Mustapa, Malaysia had been overall successful in managing poverty and improving the quality of life.

(Image: Bernama)

The minister highlighted issues such as malnutrition, the increasing burden of healthcare, the digital divide, inequality, environmental concerns, and inclusive development as the biggest challenges in the government’s agenda of eradicating poverty by 2030.

In an effort to formulate strategies on the best way forward to manage poverty during the pandemic, the government will be setting up the Poverty Circle, consisting of representatives from the government, private sector, civil society, and academics. It will be coordinated by the Economic Planning Unit in the Prime Minister’s Department for Economic Affairs.

Besides that, Mustapa also said that Malaysia had sent its Voluntary National Review 2021 (VNR 2021) to the High-Level Political Forum on Sustainable Development at the United Nations, to be held in July. The VNR 2021 highlights the nation’s progress in achieving all 17 of the sustainable development goals for the period of 2016 to 2019/2020.

(Source:
Free Malaysia Today
)

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How Are Your Savings Affected by Inflation?

Remember when things were a lot cheaper? That’s not just nostalgia talking, the costs of goods and services really are steadily rising and this is because of inflation. Understanding how inflation works is important because it can affect your retirement savings and even how you should ask for a raise. But before we get into that…

What’s the Deal with Inflation?

You may assume that inflation is what happens when prices rise, and you’re not exactly wrong. However, it might help to know why inflation happens at all. There are two major reasons:

Demand Pull Inflation

As a country develops, its citizens start getting higher-earning jobs. When people’s purchasing power increases (more on this later), their demand for goods and services increases also. When more people want to and can afford to buy more, they will. This leads to a decrease in the supply of some goods and services.

When fewer items are available, people who are willing to pay more to obtain it, will do so. This leads to an increase in price, and results in what s is called “Demand Pull Inflation”. In short, when people can and want to spend more money, prices will rise to meet that need, resulting in inflation.

Cost Push Inflation

Another way inflation can happen is when resources suddenly become more scarce or expensive. Let’s say that oil prices are going up because worldwide oil production has slowed down. This means the cost of hiring a truck to deliver goods to places will rise also. The sellers of these goods will have to charge more to maintain their profit since they still need to pay their staff the same salary. When this happens, it’s called “Cost Push Inflation.”

That is to say, when external forces make it expensive to produce goods and services, prices go up.

There are other factors that can contribute to inflation, but for the purpose of our explanation, let’s stick to these two. As you can probably deduce already, the factors above come across from a naturally functioning economy, and not necessarily the result of terrible fiscal policy. In fact, a healthy growing economy would seek to have a positive inflation rate of about 2% each year.

What Does This Have to Do With My Savings?

Remember how we talked about purchasing power just now? Purchasing power refers to the amount of goods and services you can buy with the cash you have. This is important because your purchasing power changes depending on the rate of inflation.

Let’s say you have saved up
RM100
 in a savings account that pays
1%
 in interest, and
RM100
 is the cost of a pair of cool socks. After a year, you’ll have
RM101
 in your account. You can buy those socks and have RM1 left over. That’s a positive return, right?

However, if during that same year, inflation runs at
2%
, that means those same socks now cost
RM102
. You actually need to borrow RM1 to buy those same socks you saved up for. Your purchasing power has been
reduced
 by
1%
.

At the time of writing, the average interest rate for savings account that Malaysian banks offer are
between 0.1% to 3%
 depending on the bank. Meanwhile, Malaysia’s rate of inflation has averaged
around 3.64%
 for the past few years.

That Sounds Bad. What Should I Do?

As stated above, your savings won’t beat the inflation rate at all if the only thing you do with it is stick it in a regular savings account. However, there are a few ways you can beat inflation and come out on top.

EPF and PRS

Thankfully, most of you are already familiar with retirement funds such as
the EPF and PRS which we’ve talked about before
. Regular contribution to these funds will help since they’re used for investments which, when handled correctly, should net a return that’s higher than the rate of inflation.

Fixed Deposits

Another way is to park your money in fixed deposit accounts which yield a much higher interest rate than regular savings accounts. At the time of writing, the interest rate for FDs are
about 3.2%
.

Investments

Investing your money in a simple unit trust can also help you net way more than the average rate of inflation.
Getting started with investing
 is plenty rewarding if you have the patience and interest in it, but a unit trust does the job just fine.

Use This Information to Reevaluate Your Wages

Year on year, your salary increment should match or exceed the rate of inflation for your purchasing power to remain stable. If this hasn’t been the case and you’ve been pondering on
how much to ask for a raise
, consider an increase that’s on par with the inflation rate or higher.

Run a Business

Using your savings as capital to start your business has gotta be one of the better ways to put your money to work. This one takes the most effort and time out of all the others, but it can definitely be the most lucrative.

Our recommendation is to use a combination of two or three of these methods to help protect your savings from the ravages of inflation and maintain the value of your cash.

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March Unemployment Rates In Malaysia Rose To The Highest In A Decade

According to the Department of Statistics Malaysia (DOSM), the unemployment rate in Malaysia for March 2020 increased to 3.9%, the highest it has been since June 2010. Meanwhile, the number of unemployed persons in Malaysia increased by 17.1% to 610,500, compared to the 521,300 that were unemployed in the same month of the previous year in 2019.

The unemployment rate for the first quarter of 2020 has also increased due to the sharp increase in the unemployment rate for March. The increase in the unemployment rate can be attributed to the negative impact caused by the movement control order (MCO), which was enforced to combat the Covid-19 pandemic.

Of the total number of unemployed persons, graduate employment accounted for 29.3%. The unemployment category for the youth age group of 15 to 30 years recorded the highest unemployment rate of 6.9%, followed by those aged 31 to 45 years at 1.4%, and those in the age group of 46 to 64 at 1.1%.

The DOSM also found that the number of labour forces in the month of March decreased by 0.2% to 15.48% in comparison to February 2020, with employed persons decreasing by 0.7% to 15.23 million persons. Out of the total number of employed persons, 2.81 million were own-account workers, encompassing small traders, entrepreneurs, and freelancers who earn their income on a day-to-day basis. This group was exposed to the risk of unemployment and work loss during MCO because of the obstacles in working or running their own business.

At the same time, there was also a significant increase in the number of employed persons who were working less than 30 hours per week – from 366,300 in February 2020 to 1.12 million in March.

While the data released by the DOSM did not contain projections, unemployment is expected to be significantly higher for the month of April, given that the entirety of that month was spent under the MCO. It is likely that the same will be said of the month of May with most businesses having yet to fully resume.

(Source:
The Malay Mail
,
DOSM
)

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Don't Make These Costly Mistakes When Driving an Automatic

We’ve mentioned earlier in the week about whether electric cars are worth your money over fuel cars. But just as there are many ways to save money while driving, there are also ways to drive that can
cost
 you money, too. If you drive an automatic, here are some things you shouldn’t be doing when you drive an automatic transmission to avoid expensive repairs.

As a resource, we referred to
one of Jason Fenske’s videos
 from the
EngineeringExplained YouTube channel
. He shares with us some driving habits we should avoid when driving an automatic vehicle. He explains by showing what we shouldn’t do, as well as by demonstrating why we shouldn’t do them with real engine parts and simplified diagrams.

Don’t Coast Downhill in Neutral Gear

Modern automatic transmissions are able to cut fuel to the engine on their own, so putting your car in neutral won’t save you any petrol. Also, you give up some control by doing this which makes it harder to respond in emergency situations.

Don’t Switch Between Drive and Reverse Without Stopping

Make sure you come to a complete stop before going from drive to reverse or reverse to drive. Otherwise you’re using your transmission to stop the vehicle instead of letting your brakes do their job. This puts additional wear and tear on your transmission, making it deteriorate faster than otherwise.

Don’t “Launch” Your Car

Don’t rev your car’s engine in neutral and drop into drive to launch yourself forward. Some people do this out of habit when newly switching from a manual car. It wears out the bands in your transmission faster. These bands are expensive to replace.

Don’t Shift to Park until You’ve Completely Stopped

Some models won’t even allow you to do this, but you should never do it anyway. You can damage or break the locking pin that’s used to keep your transmission from running. And just like the bands in your transmission, you don’t want to be buying a replacement for this any sooner than you have to, or at all.

Some of these bad habits might seem obvious to a car geek, but not every driver of an automatic knows how it works or what kind of damage you can do with seemingly harmless actions. These tips and best practices can help anyone stay safe on the road and extend the life of their automatic vehicle.

Speaking of saving money with cars, check out
our comparison tool that helps you find out the best car loans available at the moment in Malaysia
. Do you have your own tips for avoiding the workshop when driving an automatic vehicle? Do let us know in the comments section down below!

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Ahmad Mudhakkir

Ahmad Mudhakkir

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