Malaysia Unemployment Rate Dips Slightly To 4.2% In December 2021

Malaysia’s unemployment rate for December 2021 has eased slightly from the previous month, from 4.3% to 4.2%, according to the latest labour report by the Department of Statistics Malaysia (DOSM). This translates to 687,600 unemployed individuals in December 2021, which is a 1% decrease in the number of unemployed persons as compared to 694,400 in November 2021.

With regard to the unemployed category, DOSM’s report noted that those who are actively unemployed – defined as individuals who are actively looking for jobs – make up 83.8% of the group in December 2021. “This group recorded a decrease of 0.9% to 576,500 people. Unemployment for less than three months accounted for 55.9%, while those who were in long-term unemployment for more than a year made up 7.6%,” the report shared, adding that the actively unemployed recorded a drop of 1.3% to 111,100 persons.

Meanwhile, the working population continued to show an upward trend, with a marginal increase of 0.2% month-on-month to 15.65 million people. This is in comparison with November’s figure of 15.61 million persons.

To further break down the total employed persons group, DOSM’s report stated that the employees category – which comprised of 76.8% of the group in December 2021 – has edged up by 0.1% (12.02 million persons) as compared to the 12 million persons recorded in the previous month. The number of own-account workers, too, has increased by 0.5% to 2.64 million persons, in comparison with 2.63 million individuals in November 2021. The remaining number of employed individuals, meanwhile, fell under the unpaid family worker and employer categories.

Aside from that, the report also shared that the number of employed persons who were temporarily not working posted an increase of 12.9% to 126,700 persons as compared to 112,200 persons in November. This is due to the flood disaster which hit the central and east coast regions in the middle of December.

(Image: Samsul Said/Bloomberg)

Commenting on these latest numbers, the chief statistician of DOSM, Datuk Seri Dr Mohd Uzir Mahidin said that the Covid-19 pandemic has impeded the full recovery of Malaysia’s labour market. The implementation of the National Recovery Plan (NRP) has, however, assisted in process of revitalising the country’s economy, and consequently, the labour market.

“Towards the end of 2021, most states were in Phase 4 of the NRP – which allowed more economic and social sectors operating as usual – with compliance to standard operating procedures (SOPs), hence leading the labour force situation to recover modestly. This has steered the healthy growth of employment to continue in December 2021 while unemployment further decreased,” said Datuk Seri Uzir.

(Image: Malay Mail/Shafwan Zaidon)

Aside from the monthly unemployment rate, the latest DOSM report also shared details regarding the labour force in relation to the last quarter of 2021 (4Q21). Among others, it noted that employment during 4Q21 went up by 1.1% (15.44 million persons) as compared to 15.27 million persons in the third quarter of 2021 (3Q21). Meanwhile, the number of unemployed persons reduced to 694,400 persons, equivalent to a 6.9% decrease from the previous quarter (746,200 unemployed persons). This led to an improvement of the unemployment rate for 4Q21, recorded at 4.3% as compared to 4.7% in 3Q21.

Moving forward, Datuk Seri Uzir foresees the labour market to continue recovering in the coming months. However, this does not take into consideration the challenges of new and more dangerous Covid-19 variants.

(Source: DOSM [
1
,
2
])

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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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Govt To Extend Tax Incentives For EVs In Green Mobility Push

(Image: Bernama)

Natural Resources, Environment, and Climate Change Minister, Nik Nazmi Nik Ahmad has said that the government is planning to extend the tax incentives provided for electric vehicles (EVs) in the upcoming re-tabling of Budget 2023. This is in a bid to encourage Malaysians to transition to low-emission vehicles and to achieve carbon neutrality by 2050.

The minister also said that Malaysia aims to increase the number of EV charging points in the country from the existing 900 charging points to 10,000. “There will be a greater push from the government to ensure we reach the 10,000 target,” he said.

(Image: BusinessToday)

Under Budget 2022, the government had provided
several tax incentives
 to support the local EV industry as well as to stimulate the public’s interest in EV adoption. These included full exemptions on the import and excise duties on these vehicles, as well as full sales tax exemption. Additionally, EV car owners were able to enjoy a full waiver on road tax, on top of a tax relief of up to RM2,500 for the cost of purchase and installation, rental, and subscription of EV charging facilities.

Meanwhile, Budget 2023 is scheduled to be
re-tabled on 24 February 2023
.

(Source:
The Edge Markets
)

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Boost Introduces Super Shake Rewards, Offers Up To 3 Personalised Rewards

Boost has refreshed its existing Shake Rewards feature, which is now renamed Super Shake Rewards. With this, Boost users will be able to obtain up to three personalised rewards, on top of Boost Stars and Partner Wallet cashback when they make transactions using Boost.

The basic mechanics for the Super Shake Rewards have not changed; you will still need to perform a transaction with Boost in order to get a chance to shake for a reward. However, instead of getting only one Shake Reward regardless of how much you spend, you can now claim up to three Shake Rewards, depending on your spend amount:

Spend amount
Number of Shake Rewards
RM10.00 to RM19.99
1 Shake Reward
RM20.00 to RM29.99
2 Shake Rewards
RM30.00 and above
3 Shake Rewards

So upon making your payments, you will be prompted to shake your mobile phone for rewards as usual, after which you will be presented with a range of personalised offerings for your choosing. You can then browse through the selection, and claim the ones that are most relevant to you. So for instance, if your transaction is worth RM30, you’ll be allowed to claim a total of three vouchers from the selection presented to you.

After claiming your vouchers, you can find them under “My Purchases”, and Partner Wallets under “My Partner Wallets”. The rewards can then be redeemed following these steps:

Step 1:
 Tap on “My Bag” within your Boost app
Step 2:
Select “My Purchases” to use the vouchers, or “My Partner Wallets” to use the Partner Wallets
Step 3:
 Select the applicable rewards
Step 4:
 Tap on “Use Now”

Do be aware, though, that you will not be able to revisit the Shake Rewards page if you swipe away before claiming your preferred vouchers. A new transaction will then be required for another round of Super Shake Rewards.

Note as well that transactions that are eligible for Super Shake Rewards include payments for utilities, online and in-store shopping, and mobile reloads. Meanwhile, peer-to-peer transfers, Boost wallet cash-ins, transactions for investment-related products, as well as payments for
zakat
and PTPTN do not qualify for Super Shake Rewards.

Interestingly, Boost also specified that users can keep their Shake Rewards even if the transaction is cancelled; typically, users are not allowed to keep their rewards in such a situation. Aside from that, each reward will also have its own validity period and minimum spend requirement, so be sure to check before using them!

Boost’s Shake Rewards feature has always been an integral part of its rewards programme. When it was first introduced, Boost users were allowed to get immediate cashback with every transaction from their Shake Rewards.
Revisions were then gradually introduced
 to allow users to enjoy other Shake Rewards incentives aside from cashback.

(Source: Boost [
1
,
2
])

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    Amira Ali

    1 year ago

Wah more new thing fo Boost users, feel much more appreciated.

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E42T with UOB Credit Cards For Great Discounts

Looking for a bar & grill kinda place to chill out with friends after a long day of work? Check out 42 East, another addition to TTDI’s lively night life. What’s more if you are a UOB credit cardmember you’re entitled to 20% discount off your total food bill (excluding tobacco products and alcoholic beverages).

This offer is valid until 31 December 2013 and not applicable with other existing promotions, discounts, set menu, functions, special events and loyalty programmes. This promotion is not valid during public holidays and the eve of public holidays. For further information please refer to the
Terms & Conditions
.

Visit
RinggitPlus.com
 and get yourself a brand new UOB credit card.

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3 Affordable Housing Property in Kuala Lumpur You Can Own For RM200,000

Buying an affordable home in KL which is located near the city center is not a distant dream anymore. Under the RUMAWIP (Rumah Mampu Milik Wilayah Persekutuan) program, the Federal Territories Ministry has pledged to build 80,000 affordable homes by the end of 2018. (Yay for affordable houses in KL!)

And that’s not all; among the RUMAWIP projects that are launched by a group of selected developers, we have found 3 housing properties that you can own for RM200,000 or less. Don’t worry, these houses are not just random cheap apartments in obscure places in Kuala Lumpur. These relatively low-cost apartments are strategically located either in popular locations like Kuchai Lama and Kepong or next to amenities like an LRT station. So if you are thinking of getting a place to call yours, it’s best to act now. But first…

How Do I Qualify For RUMAWIP?

In order to qualify for RUMAWIP, you must first fulfil their eligibility criteria. You must be:

Aged 18 and above

Malaysian citizen

Born, currently residing or working in the Federal Territory

Have a household income of under RM10,000 (Single) and RM15,000 (Husband and Wife)

Fulfilled the requirements that are stated above? Right, so before you can get your
 down-payment
 ready , let’s look at the housing properties first, shall we?

Residensi Tasikmas

Property Name
: Residensi Tasikmas

Property Address
: Lot 101245, Jalan 9/118 B, Desa Tun Razak, 56000, Kuala Lumpur, W.P. Kuala Lumpur

Property Type
: Leasehold

Type of Residence
: Apartment

Number of Rooms
: 3

House Specifications
: 3 Rooms + 2 Bathrooms

Size
: 805 sqft

Developer
: Ujana Mutiara Sdn. Bhd

Developer’s Address
: Lot 33545, Batu 5 Jalan Klang Lama, 58000 Kuala Lumpur W.P. Kuala Lumpur

Developer’s Contact Details
: 03 – 7989 9888 /
www.asetkayamas.com

Final Date for Document Handover
: 31-Dec-2018

Expected Completion Date
: 30-Nov-2020

Units Open for Sale
: 463

Application Date
: 28-Apr-2017

Application Closing Date
: 31-Dec-2018

Read Also
:
 Getting to Know the Skim Rumah Pertamaku (SRP)

Residensi Kuchaimas

Property Name
: Residensi Kuchaimas

Property Address
: Jalan Indrahana 3, Kuchai Lama, 58200, Kuala Lumpur, W.P. Kuala Lumpur

Property Type
: Leasehold

Type of Residence
: Apartment

Number of Rooms
: 3

House Specifications
: 3 Rooms + 2 Bathrooms

Size
: 800 sqft

Developer
: Ujana Mutiara Sdn. Bhd

Developer’s Address
: Lot 33545, Batu 5 Jalan Klang Lama, 58000 Kuala Lumpur W.P. Kuala Lumpur

Developer’s Contact Details
: 03 – 7989 9888 /
www.asetkayamas.com

Final Date for Document Handover
: 31-Dec-2018

Expected Completion Date
: 30-Nov-2021

Units Open for Sale
: 478

Application Date
: 20-Nov-2017

Application Closing Date
: 31-Dec-2018

Read Also
:
 Pro-tips From Seasoned Buyers on Buying Property

Residensi Kepongmas

Property Name
: Residensi Kepongmas

Property Address
: Lot 80454, Jalan Ambong 2, Taman Metro Prima, 51200, Kuala Lumpur, W.P. Kuala Lumpur

Property Type
: Leasehold

Type of Residence
: Apartment

Number of Rooms
: 3

House Specifications
: 3 Rooms + 2 Bathrooms

Size
: 800 sqft

Developer
: Ujana Mutiara Sdn. Bhd

Developer’s Address
: Lot 33545, Batu 5 Jalan Klang Lama, 58000 Kuala Lumpur W.P. Kuala Lumpur

Developer’s Contact Details
: 03 – 7989 9888 /
www.asetkayamas.com

Final Date for Document Handover
: 31-Dec-2018

Expected Completion Date
: 28-Feb-2021

Units Open for Sale
: 324

Application Date
: 15-Jan-2018

Application Closing Date
: 31-Dec-2018

Is there Anything Else That I Should Know?

As an effort to reduce the cost of ownership of first home for Malaysian citizens, the government has proposed the following stamp duty exemptions:

The above exemption is applicable for sale and purchase agreement executed from 1st January 2017 to 31 December 2018. Having said that, a percentage will still be charged for property and loan agreement stamp duty

So, if this is the first time you’re buying your home, you’re in luck! The stamp duty exemption will be ending on the 31st of December 2018 so if you have been contemplating as to whether you should invest in a house, this is the best time to do so.

Also, remember that apart from paying the down-payment for your home, there are also other
 additional costs
 that you will add up to your overall expenditure and so it is best to set aside a sum of money for the fees that you will encounter along the way.

Now that you know where you can buy a home near the city center of KL for under RM200,000, we hope you can get out there and make a more informed decision when it comes to buying a home. One last word of advice: Be prepared to search far and wide. It is always in your best interest that you have some backup options in the event you are unable to get any of the three housing properties above. You could head to RUMAWIP’s website to search for more low-cost housing options within Kuala Lumpur but it is also important to expand your research into Selangor as well. Once that’s done, make the necessary financial preparation.

While we’re on the subject, you want to check out the selection of
 personal loans
 available at our website. It’s also a fast method to cash, which will definitely come in handy in paying off the additional house-related fees. All the best in your quest for your forever home!

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8 Genius Tips To Save On Petrol Expenses

With the recent price hike announcement for both petrol and diesel, more Malaysians are finding ways to cut down on petrol expenses. It’s not surprising really, seeing as
RON95
 will soon be retailed at RM2.30 per litre while RON97 will be priced at a whopping RM2.60 per litre. Diesel users won’t escape the price hike either, as it will be sold at RM2.15 per litre. The figures may seem small enough to you now, but wait until you see the end figure of your petrol monthly expenses.

To put it into perspective, say you own a MyVi 1.3, which has a full tank capacity of 40 litres. Assuming you opt for the more economical RON95, a full tank of the said car will cost RM2.30 X 40 litres = RM92. Let’s say you fill your car’s tank once a week, that brings your total petrol expenses to RM92 X 4 = RM368 each month!

Of course, there are ways for you to trim down on this seemingly excessive expenditure. We’ve compiled 8 proven, easy-peasy, and completely doable tips to help you economise on your petrol expenses without having to tighten your belt.

Carpool

Talk to your colleagues and start a carpooling community at work. Find out who lives closest to who and assign groups according to specific areas where each of you can take turns to be the designated driver. Start a shared fund for the driver’s petrol, toll and parking expenses (be sure everyone pitches in!) on a weekly or monthly basis for the driver’s easy access.

This can also work for your children’s commute to school, as you can speak to other parents in your neighborhood and set up a carpool schedule. Not only will this method save your petrol expenses and time, it also helps to reduce the overall traffic!

You can also consider using GrabHitch, the carpooling service offered by Grab Malaysia for those rare trips to the restaurant or malls at a fraction of what you’d need to fork out if you drive your own car.

Take Public Transportation

A no brainer, switching to public transportations will save a huge chunk of your travel expenses compared to driving your own car. Sure, it can get a little packed sometimes, but think of all the money you can save from having to pay for toll, parking, and most importantly, petrol.

Besides, with the recent completion of Mass Rapid Transit (MRT), getting around in the Klang Valley region has gotten a lot breezier compared to the old days, so you have fewer reasons to drive your car in the city.

Switch to a Motorcycle

Admittedly, driving a motorcycle can be a bit cumbersome, you won’t have as easy a driving experience as driving a car, and you won’t have a lot of rooms to stuff all our shopping and baggage in.

However, the big win about driving a motorcycle is that it uses a lot less petrol than a car would, as well as being on the cheaper side when it comes to maintenance, road tax, insurance, and even toll.

Service Your Car Regularly

Keeping your car in optimum condition makes a huge difference to your car’s fuel efficiency. Cleaning your air filter, ensuring your tyres are properly inflated, and regular changing of engine oil can help
save your car’s petrol consumption by up to 10%
.

Do you often forget to secure your petrol cap? Petrol can evaporate overnight if the cap is not airtight, so give the cap an extra turn to make sure it’s all nice and tight.

Ditch Unnecessary Weight

Driving around excess weight will make an impact on your petrol expenses. The heavier the weight your car has to carry, the more petrol is needed to move around. Take some time to declutter your car at least once every few days, and avoid leaving heavy items in your car such as golf clubs, baby stroller, and that boxful of shoes (yes, it has to go, ladies).

Turn Your AC off

No, we don’t mean you should not use your air-conditioning at all, but try to turn it off when it’s not too hot or when you’re driving at night. Air-conditioning
increases your petrol consumption up to 25%
, so turn it off and wind down the windows when you’re cruising at less than 90 kilometres per hour.

Drive Efficiently

Excessive braking, frequent acceleration, and speeding are all harmful to your petrol economy. Drive smoothly and try to maintain a speed of 90 kilometres per hour for maximum petrol efficiency. Accelerate slowly when you’re starting from a dead start, and don’t idle when you start your car first thing in the morning. It might take you slightly longer to reach your destination, but your patience will be rewarded to
up to 25% lesser petrol consumption
.

Use Petrol Credit Cards

Take advantage of the reward programs and perks offered by petrol credit cards to make the most out of your petrol expenses. Most petrol credit cards offer cashback, reward points, petrol redemptions, and dozens of other benefits which can save you tonnes of money each time you swipe. Have a look at our
credit card comparison page
 for an ideal petrol credit card that suits your spending style!

Have any other tips or ideas on how to better save on petrol expenses? Don’t be shy to share them with us! Let us know in the comment section below!

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Syaza Abd Jani

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World’s First Negative Interest Rate Mortgage Launched In Denmark

(Image: B
erlingske)

Denmark’s third largest bank, Jyske Bank, has launched the world’s first negative interest rate mortgage. At an interest rate of -0.5% a year, it effectively means that Jyske Bank is paying homeowners for taking out a loan.

“It’s another chapter in the history of the mortgage,” said Jyske Bank housing economist Mikkel Høegh. Under this negative mortgage, you would make your monthly repayment as usual – but each month, your debt would be reduced by more than the amount you paid off.

However, this doesn’t mean that Danes can go around borrowing from Jyske Bank with the expectation of earning money. With additional fees to be paid and loss of prices to take into account, borrowers may still end up paying more than they borrowed. Moreover, the -0.5% interest rate offered by Jyske Bank is only for 10-year mortgages. The short term of the mortgage makes it more suitable as a supplemental loan for home improvements or to pay off debts with higher rates, as opposed to financing an entire home purchase.

Nevertheless, this move is unprecedented – so how exactly did this negative interest rate even come about? As explained by Høegh, Jyske Bank has been able to go into money markets and borrow from institutional investors at a negative rate; the bank is simply passing this on to its customers. Countries such as Denmark, Sweden, and Switzerland have seen their money markets drop to levels that have effectively turned banking upside-down.

According to the
Wall Street Journal
, negative rates were introduced over five years ago as a short-term solution to jump-start economies. As negative rates encourage businesses to borrow money, it creates an incentive for them to invest money back into the economy rather than save it. “Policy makers hope negative rates will act as a sort of tax on holding money, encouraging those who have it to lend to spend it, increasing money’s velocity,” the Journal said. Of course, there is the possibility that people will just hoard physical cash, thus slowing down the speed at which money moves along the economy.

Consumers face a potential downside to this situation too. In Denmark, the Central Bank’s base rate is currently set at -0.4%. Just like when Bank Negara Malaysia announced
a reduction in its overnight policy rate (OPR)
 which affected interest rates for both savings and loans, Danes will see their bank deposits suffer should interest rates on their savings go negative too. “Right now, for deposits we don’t have a negative interest rate,” Høegh said. “But discussions are ongoing at the very highest level. It’s just that no bank here wants to be the first mover into negative deposit rates.”

(Source:
The Guardian
,
Business Insider
,
CNBC
)

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Maybank Makes Secure2u Verification Mandatory For More Transactions

(Image: Maybank)

Maybank said that it has enabled Secure2u as the only verification method accepted for several more online transactions and banking activities performed on the Maybank2u website and the MAE by Maybank2u (MAE) app, including applications for EzyPay Plus and supplementary credit cards. More importantly, the bank also noted that it will fully migrate its Secure2u feature to the MAE app starting from 1 July.

In its notice, Maybank clarified that Secure2u will be the only authorisation method accepted for the following listed transactions:

Platforms/Effective dates
Services
Transactions/Banking activities
Maybank2u website

(starting 16 May 2023)
Credit cards
– Apply for EzyPay Plus
– Add supplementary card
Unit trust
– Subscribe to unit trust
– Top up unit trust fund
Amanah Saham Nasional Berhad (ASNB)
– link an ASNB account (via “Wealth”)
– Unlink an ASNB account (via “Settings”)
WAQF
Apply for WAQF
MAE app transactions
(starting by the end of May 2023)
Scan & Pay
– Register for Scan & Pay
– Adjust daily and cumulative limits
ATM cash-out
Set up ATM cash-out
Settings
– Security: Change PIN
– Profile: Change mobile number
– Maybank2u: Change password and security question

This latest development complements
Maybank’s recent reminder
 that it is
completing its migration to Secure2u for all online card transactions by 1 July
. With this, customers will no longer receive Maybank Secure Online Shopping (MSOS) codes when they make online purchases using their credit or debit cards.

For those who are still unfamiliar, the MSOS code is essentially your SMS one-time password (OTP) that is sent via SMS to authorise a card payment. Meanwhile, Maybank’s Secure2u is said to be “faster and safer”, where you’ll receive a push notification from within your Maybank mobile banking app to approve or reject a card payment.

In addition to these updates, Maybank also highlighted that it will be fully migrating Secure2u to the MAE app starting from 1 July, making it the only app that carries the Secure2u function. This is as opposed to the current situation, where customers who had previously activated Secure2u on the Maybank2u app are still allowed to use the verification feature on the older app (although
new activations of Secure2u have been permanently moved from the Maybank2u app to the MAE app
 since September 2022).

Essentially, this update means that all Maybank customers will soon have no choice but to switch over to the MAE app if they want to approve any online transactions. It is also in line with
Maybank’s eventual plan to phase out the Maybank2u app
, leaving MAE app as the the bank’s only mobile banking app.

If you need help on how to activate Secure2u on the MAE app, here’s a guide from Maybank to help you out with the process:

Do note that there will be a 12-hour cooling period once you’ve enabled Secure2u on the MAE app; you will not be able to use Secure2u to verify any online banking transactions or activities during this period. This is in an effort to better combat financial frauds, said the bank.

(Source:
Maybank
)

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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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Malaysia Loan Moratorium 2021 Guide: Should You Take The 6-Month Deferment For Your Loans?

Under the PEMULIH stimulus package, Malaysia will once again see a
6-month moratorium for all loans
, applicable to all Malaysians starting July 2021 until the end of the year – the second time the government has done so since the Covid-19 pandemic hit us in early 2020.

The 2021 loan moratorium is largely similar to what we saw in the middle of last year, and does not have the same eligibility requirements as the
Targeted Repayment Assistance
 that was available from October 2020. Under the new loan moratorium, any Malaysian individual and micro-SME can apply for a loan moratorium for all existing credit facilities, including mortgages and home loans, hire purchase agreements or car loans, personal loans/financing, and includes other loans such as ASB financing.

But given that this is third such financial assistance of its kind to be offered to Malaysians, there is a huge amount of confusion and uncertainty regarding what the actual terms are for this 2021 loan moratorium. We have addressed this in our previous article, and for this article, we’ll be taking a deep dive on the pros and cons of taking this loan moratorium.

Hire Purchase/Car Loans

(Image: The Star)

A majority of hire purchase agreements in Malaysia are fixed-rate loans, which means that the interest rate is agreed upfront and is charged on a fixed amount (the value of the loan) throughout the tenure of the loan.

For this year’s loan moratorium, there is no “blanket” rule on how this moratorium will impact existing hire purchase agreements. As mentioned previously, the banks are allowed to set their own terms and conditions for this loan moratorium, and it is evident in how they treat hire purchase agreements.

Thus, for fixed-rate hire purchase agreements, one bank may impose interest accrual during the deferment period while another may not (and thus offer a true “payment holiday” from July to December 2021). Based on the banks’ FAQs released on 7 July, we can confirm that hire purchase loans from Maybank, Hong Leong Bank, CIMB Bank – among others – will accrue interest during the deferment period. This accumulated interest is then to be paid off in one lump sum alongside the final instalment.

Interestingly, Affin Bank’s original FAQ stated that there will be no interest accrued (i.e. accumulated) during the deferment period – before that document was deleted and reuploaded with one that omits that crucial bit of information.

As such, we encourage borrowers to check with their banks on the specific terms they are offering for fixed-rate hire purchase agreements. The bank will also share other information to you, such as the additional interest accrued and tenure extension (if any).

Meanwhile, variable-rate hire purchase agreements will be similar to home loans, which we will cover below.

Personal Loans/Financing

Just like hire purchase agreements, personal loans/financing follow a flat-rate basis for interest/profit rates – it is agreed upfront and is charged on a fixed amount/value (i.e. the value of the loan).

For this year’s loan moratorium, however, conventional personal loans will see interest accrued during the deferment period and may result in an extension of the loan tenure. As for the treatment of interest, once again it is a case of different banks with different terms. For example, CIMB’s FAQ states that loan tenure will be unchanged, and the accrued interest is to be paid alongside the final instalment. Meanwhile, RHB’s FAQ states that this accrued interest can be paid off in one lump sum upon expiry of the deferment period.

Perhaps most interesting is the fact that Maybank – based on its current FAQ – mentions that it is offering a “true” moratorium for its personal loan and personal financing facilities, with zero additional interest/profit accrued during the deferment period. There are no changes to the monthly instalments, and the loan tenure is extended by 6 months.

Mortgages/Home Loans

Mortgages or home loans charge interest on a reducing balance basis, where interest is charged each month based on the outstanding balance from the previous month. With the six-month loan moratorium, all monthly repayments are paused, but interest will still accrue – it is the same as last year’s moratorium as well.

As mentioned by Finance Minister Tengku Zafrul Abdul Aziz
, interest will accrue but not compound during the deferment period – and all the banks’ FAQs also mentions this point. However, once repayment is resumed, the accrued interest is capitalised – this means that it is added to the principal balance and is then treated as the total outstanding balance…and thus, will compound over time.

Note that the above applies only for conventional home loans – for Islamic home financing, the accrued interest is always treated separately. In many cases, resumed repayments will go towards paying off this portion first before the principal – which still means the overall cost of borrowing increases (because you’re paying the principal slower than before the moratorium).

Nonetheless, it should be noted that the effect of non-compounding interest during the deferment period is generally negligible for the individual borrower. As we highlighted last year, the value is very small since the duration is too short to be significant – the effects of compounding interest gets stronger the longer it goes on, and six months does not even make up 1.5% of a 35-year loan. To illustrate, here’s our example from last year:

Scenario: outstanding balance RM500,000, with a 4% p.a. mortgage and monthly repayment is RM2,390.52.

Month

Interest charge (non-compounding)

Interest charge (compounding)

July 2021

RM1,666.67

RM1,666.67

August 2021

RM1,666.67

RM1,672.22

September 2021

RM1,666.67

RM1,677.80

October 2021

RM1,666.67

RM1,683.39

November 2021

RM1,666.67

RM1,689.00

December 2021

RM1,666.67

RM1,694.63

Total

RM10,000.02

RM10,083.71

Difference

RM83.69

Disclaimer: The example above is for illustration purposes only. Please refer to your banks on the actual computation of interests for your loan/financing.

As you can see, the
compounded value is not substantial whatsoever
 from an individual borrower’s perspective. But as we also highlighted last year, this value quickly turns into a considerably big amount for the banks. Data from the National Property Information Centre shows that between 2009 until 2018, there were over 2.3 million residential properties sold. Assuming all of these properties were sold via home loans, the value of the 6-month non-compounding interest could actually come up to hundreds of millions of Ringgit in potential revenue for the banks in Malaysia.

The figure that borrowers must be aware of the most is that this moratorium will result in an
additional borrowing cost of a minimum six months’ worth of interest
 into your home loan, and this amount
will compound
 over the tenure of the loan. And this time around, the banks are not offering options for paying off this accrued interest (at least not in their FAQs). Most banks will maintain the borrower’s previous monthly instalment when the deferment period ends, and the loan tenure will be extended accordingly.

Coincidentally, this is also the option that will incur the highest borrowing cost based on
our analysis last year
 (where three repayment options were given). We’ve reproducing it here for easy reference:

Scenario: outstanding balance RM500,000, with a 4% p.a. mortgage and monthly repayment is RM2,390.52.

Option 1: Lump sum payment in Month 7
Option 2(A): Same monthly repayment, extend tenure
Option 2(B): Higher monthly repayment, +6 months tenure
Option 3: Higher monthly repayment, no tenure extension
Monthly repayment
RM2,390.52
RM2,390.52
RM2,438.33
RM2,459.88
Repayment difference
0
0
+ RM47.81
+ RM69.36
Loan tenure
+ 6 months
+ 21 months
+ 6 months
Unchanged
Total interest charged from deferment
RM10,000.02
RM33,866.34
RM17163.94
RM10139.68
Disclaimer:
The example above is for comparison purposes only. For the 2021 loan moratorium, banks did not announce multiple repayment options of accrued interest – most banks will default to Option 2(A). Note the effects of compounding interest, which more than triples the accrued interest in this example. Disclaimer: this is an illustration only. You should check with your bank for interest computations for your loan.

From our checks of the banks’ FAQs, CIMB is an exception, where there is no extension of loan tenure and borrowers may be required to pay a lump sum payment of the outstanding balance at the contracted loan maturity date. Affin is also another exception, where it is the only bank to offer increased instalment payments to reflect the additional outstanding balance and extend the loan tenure only by six months. This increase will be marginal, probably only in the two-digit range. Here’s Affin’s example in its FAQ:

In the example above, the monthly instalment increased by RM28 from the pre-moratorium instalment to pay off the accrued interest over the course of the loan/financing. Note that the amount is the same for both conventional and Islamic financing for Affin specifically
.

While there are no multiple repayment options on the table as with last year’s moratorium, the banks are encouraging borrowers to resume normal repayments as soon as possible to. All banks are offering the flexibility of resuming usual repayments to borrowers who take up the loan moratorium and effectively terminate the deferment early (and therefore reduce the borrowing cost). According to Bank Negara Malaysia, banks are also able to adjust your instalments when your income improves – this is something to keep in mind that you can commit to in the future.

What about Islamic home financing?

Since Shariah-based financing forbids compounding profit (i.e. no profit from accrued profit), you will only need to repay the accrued profit from the six-month deferment which will be kept separate from the principal balance. That said, borrowing costs will still increase since post-moratorium instalments will be used to pay off the principal
and
 this accrued interest – since the principal repayment is now made at a slower rate, the loan tenure will be extended and effectively increase the borrowing cost.

Thus, we recommend checking with your respective banks on how repayment will be implemented at the end of the moratorium period.

What should you ask your banks?

Considering the fact that this loan moratorium is being handled differently by different banks, we strongly encourage borrowers to ask the banks directly regarding your loan/financing. They will be able to provide the most accurate information, so you can make the best decision for yourself.

Some of the questions you should ask are:

How much is the new monthly instalment amount after the moratorium?
How much is the additional interest accrued after the end of the moratorium?
What are my options to repay the accrued interest after the moratorium ends?
Will my tenure change?
Are there any additional fees involved?
What can I do if my income has not recovered after the six-month deferment?

Note also that if you currently have an existing Repayment Assistance for your loan, you need to check how this new loan moratorium will affect your existing and future repayment arrangements. If you are one of these borrowers,
you need to ask your bank
 about this, because there may be multiple capitalisations of interest involved that can significantly increase the cost of borrowing.

Impact Of the Loan Moratorium: Cash Flow Relief To Those Who Need It Most

(Image: Malay Mail/Firdaus Latif)

The most important thing to remember about the loan moratorium is the immediate relief it brings to the borrower’s cash flow. For those who have lost their jobs or are facing salary cuts, this is a huge chunk of monthly commitment that can be paused without consequence (other than increased borrowing cost, of course).

Using the same RM500,000 home loan example earlier in this article, the monthly repayment of RM2,390.52 is a substantial amount that can be channeled towards groceries, children’s education needs (especially now with remote learning and online classes), and of course, alleviating immense financial stress. In exchange, the borrower pays RM47.81 or RM69.36 (or whichever increase proposed by the bank) more to their home loan repayments each month for the next 30 years.

For those who don’t have a choice, this trade-off is worth every Ringgit.

For Those Who Can Afford, Should You Take The Loan Moratorium And Invest?

One interesting piece of data from last year’s loan moratorium showed how many Malaysians took their loan moratorium funds and invested them, driving
retail participation in Bursa Malaysia in 2020 to a record level
. In 2021, is this still a viable option?

With the
glove stocks bull run
 already over, heightened local political instability, and global concerns over new mutations of the virus that will affect economic recovery, the
level of investment risk today is arguably higher than in 2020
– there is a strong possibility of losing money if you are planning to just cash in and out within a few months. Of course, if your investment horizon is long (>10 years), this may be an opportunity to invest in high-quality blue chips, unit trust funds, or other investment vehicles.

Alternatively, RinggitPlus co-founder and Licensed Financial Planner, Hann Liew, has another option: put these funds into investment assets even if lower on the risk scale such as EPF or balanced PRS funds. “The goal here is to get consistent returns at above home loan rates; currently they are in the 3% p.a. range, but in better economic climates they hovered in the 4.5% p.a. range. I’d target long-term returns of 5-6% p.a. at the minimum to be safe,” he said.

So what investment assets fit this bill? Hann added, “The EPF has consistently declared annual dividends above 5% p.a. for over 20 years. Its
10-year historical dividend rate of 6.11%
 is around 2x current home loan rates, and since 1999 (the furthest publically-available annual records of its dividends), there have only been four years where its dividends dropped below 5%. EPF members can self-contribute up to RM60,000 per year, so this is a relatively safe option that offers decent returns.”

Meanwhile, unit trust funds offered in the Private Retirement Scheme (PRS) cover a broad scope of risk to suit various investors – historically, the funds record returns from 3% p.a. to more than 10% p.a. depending on risk level (conservative, balanced, growth) and asset management house. There is also the
RM3,000 tax relief for PRS investments
 to consider, too. If you are considering this route, here’s a guide on
how to select a unit trust fund
.

More importantly, both EPF and PRS “locks” your investments until you are 55 years of age and thus eliminate the risk of you withdrawing the funds earlier or misusing them in other ways (because the breakeven point can be decades down the line). In the long run, these investments could yield a net positive return throughout the investment period and offset the accrued and compounding mortgage/home loan interest.

To illustrate, let’s use the same home lone scenario: RM500,000 outstanding balance, interest rate at 4% p.a., monthly instalment RM2390.52, and a remaining tenure of 420 months (35 years). After the deferment period, the accumulated interest is RM10,000.02 – this figure will then compound monthly until the end of the loan to a final amount of RM39.657.98 (assuming a fixed home loan rate of 4% p.a.). We compare two options: investing just this interest portion (RM10,000.02) and the full six months instalments (RM14,343.12) into EPF (assuming a 6.11% dividend). The table below displays the hypothetical dividends earned after 35 years and the breakeven points for both options:

Dividends earned at Year 35
Net profit at Year 35
Breakeven point
Invest interest portion only
RM69,702.47
RM30,044.49
Year 24
Invest full instalment
RM99,974.89
RM60,316.19
Year 18
Disclaimer: The figures above are derived based on the following assumptions: a fixed home loan rate of 4% p.a. throughout the tenure, and an EPF dividend payout of 6.11% from Year 1-35. This figures will differ in reality since rates and dividends will vary – this illustration serves only to highlight the amount of time it’ll take for this investment to break even.

But of course, it must be reiterated that before making any investment decisions, borrowers must consider the risks involved – in this case, using borrowed funds to invest in an uncertain market. The above does not constitute as financial advice.

Should You Take The 2021 Loan Moratorium? Our Recommendations

So, with all that said and done, should you take the six-month loan moratorium in 2021? Surprisingly, our recommendations have not changed much compared to last year. We recommend you to take the loan moratorium if…

1.
You face some serious cash flow issues during this period and have no/exhausted emergency funds.
 This moratorium is aimed at addressing this exact concern. If your employer has imposed a salary cut or worse, a round of layoffs that affects you, this deferment will ease the financial stress. Meanwhile, don’t forget to also check what financial aids you are eligible for – there are
quite a few announced in the latest PEMULIH package
. This is a very difficult period that’s worse than 2020 both economically and pandemic-ally, but we can pull through.

2.
You foresee a potential cash flow issue.
 With businesses crippled and whole industries unable to operate during this extended lockdown, you’ll never know what might happen. This moratorium can be opt in at any time from now until 31 December, and will apply for six months after, so you don’t have to make a decision now.

Alternatively, there is also the 50% reduction option that is available for all loans and financing. This reduces the cost of borrowing (compared to the full loan moratorium) but is still a considerable amount so you will need to decide if that amount is worth the extra peace of mind. Bank Negara Malaysia also confirmed that you can switch to the full loan moratorium at any time during the deferment period should your financial situation worsen.

Another option is to
consult with a Licensed Financial Planner
 who may be able to provide better advice and strategies to help you better prepare for cash flow issues.

3.
Your bank offers a “true” moratorium for your loan/financing.
 From the banks’ FAQs, there are some facilities that enjoy a “true payment holiday” (at the time of writing, of course – the T&Cs may change in future). With zero additional borrowing cost, you can use this amount to rebuild your emergency fund or probably get some decent short-term returns by placing them in fixed deposits or other low-risk facilities such as money market funds. Do consider that in this low-interest environment, the net returns may not amount to much. Lastly, be responsible with this fund since it is meant for loan repayment and the loan/financing tenure is short – no hodl mentality here.

4.
Your risk appetite is high enough, or if your investment horizon is long.
 If you can afford your monthly instalments, have a comfortably-sized emergency fund, and job security isn’t an issue, you can potentially make use of the deferred monthly repayments to make more money as explained in the previous section. That said, borrowers must understand that every investment has its risks, and using borrowed funds to invest increases the quantum of profits and losses. Do your own research or
consult with a Licensed Financial Planner
 if you are considering this option.

*****

In conclusion, the 2021 bank loan moratorium will benefit all Malaysians servicing any form of loan/financing facility and is a much needed one in such a difficult period. We recommend those eligible to take the loan moratorium, as those who will need it will have a brief respite, while those who can afford to service their loans can earn some money by saving or investing the deferred instalments.

Disclaimer: The information shared in this article is accurate at the time of writing, but may change should there be new developments to the 2021 bank loan moratorium. The recommendations mentioned here do not constitute as financial advice, and borrowers should speak to their banks or consult with a Licensed Financial Planner before making a decision.

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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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    Jogho

    2 years ago

Hi, thank you for the article. I have a crazy idea. What is the benefit/impact of taking up the 6-month moratorium and dumping the full monthly instalment amounts into the same flexi housing loan? Can you help to check on this and give some clear examples on how this should or should not be considered?

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    Alice Phua

    2 years ago

Good read, thanks for writing this much-needed article for the average laymen who are keen on personal finance.  The concept is well explained. the potential pitfalls or ‘catch’ are all highlighted, and the potential opportunities to gain from the moratorium based on certain circumstances are all well explained. Well done!

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Self-Employed Workers Urged To Make EPF Contributions Via i-Saraan

(Image: The Star)

Less than 10% of Malaysia’s 2.7 million self-employed workers contribute to the Employee Provident Fund’s voluntary i-Saraan scheme, Deputy Finance Minister II Mohd Shahar Abdullah revealed. In light of these less than encouraging numbers, the deputy minister has urged more Malaysians to sign up for the scheme, especially those in the gig economy.

“Of the 255,000 who registered for the i-Saraan scheme, only 18% are contributing to the EPF consistently,” said Shahar. “This is quite unfortunate because the scheme has been designed to provide some sort of social security coverage for the self-employed or those in the informal sector.”

(Image: Bernama)

Through the
Penjana economic recovery plan
 announced in June, the government launched a RM50 million matching grant for gig economy workers who wished to contribute to EPF’s i-Saraan and SOCSO’s Employment Injury Scheme. Self-employed workers will receive an additional 15% incentive from the government, subject to a maximum of RM250 per year. The special incentive is being given out from 2018 until 2022.

The deputy finance minister highlighted that the incentive from the government goes above and beyond the benefits provided by the EPF such as the usual annual dividend. “So those who do not have a fixed income every month should also sign up as this will certainly benefit them as well,” he said, adding that housewives are eligible for the i-Saraan scheme too.

(Source:
The Star
)

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Win a Limited Edition Fuji Camera With Maybank American Express Credit Card

Maybank American Express credit cardholders could stand a chance to win a
complimentary Fujifilm Instax Mini 7S – Panda Limited Edition
 camera worth RM300 when they spend more than RM2000 from now till April 30 2013.

This complimentary gift is limited to the first 200 lucky cardholders who receive a notification from Maybank (via email or SMS).

Eligible participants include cardholders of:

American Express®Card

American Express® Gold Credit Card

 American Express® Gold Card

Maybankard 2 American Express® Cards

Singapore Airlines KrisFlyer American Express® Gold Credit Card

Maybank Islamic Ikhwan American Express® Cards

Pantai American Express® Credit Card.

No registration is required for entry of this campaign. To qualify cardholders will need to spend RM2000 in a single or multiple transaction on Qualifying Retail Transactions with their American Express credit card.

Selection of winners is at the discretion of Maybank. Prizes are not redeemable for cash.

Please read the
Terms & Conditions
 for more details.

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Brendon Lee

Brendon Lee

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Citibank rolls out trolley bag promotion for AirAsia cards

Citibank is
giving away 20” Santa Barbara Polo & Racquet Club hard case trolley bags
 for new AirAsia-Citibank cardholders.

To get one, you’ll have to be among the first 2,000 to successfully sign up for an AirAsia-Citibank Platinum or Gold Visa credit card.

You’ll also have to make retail purchases of more than RM800 in at least three swipes within 60 days of card approval date.

Promotion is on until 30 April. Terms and conditions apply.

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John Royce

John Royce

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#DuitTheEasyWay: Give Your Old Clothes To H&M And Get 15% Vouchers

If you’re clearing out your closet to make way for new clothes this Chinese New Year, here’s a money-savvy way to get rid of your unwanted clothing. Bring a bag of your old textiles to any H&M store in Malaysia and you will get a voucher giving you 15% off one item of clothing in-store.

The old clothes you bring in don’t have to be from H&M – clothing from any brand will do. There are no strict rules regarding how big your donation bag has to be either, although you can only receive a maximum of two vouchers a day. The 15% voucher cannot be used on purchases on H&M gift cards, designer collaborations, or sale and offer items. Each voucher comes with an expiry date and is valid at all H&M stores in Malaysia.

H&M’s Garment Collection Programme is part of a global initiative for a more sustainable fashion future. The clothing collected will either be worn again as second-hand goods, reused as other products, or recycled. So, if you want to do some good for the environment while scoring yourself a discount, it’s time to spring clean your closet and bring your unwanted clothes over to H&M.

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    Lindie

    2 years ago

Can you tell the branches of H&M that recycle clothes in Kuala Lumpur? Thanks

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    Anonymous

    1 year ago

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Just go to any outlet h & m.

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TNG eWallet Also Teases TNB Bill Payment Feature, Starting From 13 November

Just a few days after Boost hinted at the possibility of making
Tenaga Nasional Berhad (TNB) electricity bills payable via its BoostBill feature
, Touch ‘n Go (TNG) eWallet, too, has shared a post on its social media that hints at the same thing.

“The power of electricity has always been in blue. We have a bright new partner you’ve always been waiting for & an electrifying deal you won’t want to miss. All will be revealed on 13 November 2021,” the e-wallet service provider shared in the post.

With this announcement from TNG eWallet, Boost will not be the sole official e-wallet payment partner for TNB as the electricity utility company begins to embrace e-wallet payments after a long time of steering clear of it. As TNB (gradually) opens its doors to e-wallet payments, this could mean that Malaysians will potentially be able to earn considerable
savings in the long term
, such as via credit card rewards programmes.

Similar to Boost, TNG eWallet currently allows its users to pay electricity bills from three billers, namely Sarawak Energy, Sabah Electricity, and NUR Power (Nur Distribution).

(Source:
TNG eWallet
 (Facebook))

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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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Analysts Predict OPR To Hit 3.00% In 2023

(Image: Reuters)

Several research and financial institutions have predicted that Bank Negara Malaysia (BNM) will gradually raise the overnight policy rate (OPR) to 3.00% by 2023, thereby normalising the policy rate.

According to Kenanga Investment Bank Bhd, further OPR hikes are expected given the increasing inflationary pressures and sustained economic recovery in the country. “This is also in tandem with the global central bank’s monetary policy tightening cycle predominantly to combat rising inflation,” it further shared.

However, Kenanga Investment Bank believes that BNM will not carry out an aggressive rate increase, such as hiking the OPR by 50 basis points (bps). This is unless the inflation rate rises above the central bank’s projection, driven by stronger-than-expected domestic demand.

(Image: The Edge Markets)

“Likewise, we retain our forecast that BNM will gradually raise the OPR by 25 bps each in the September and November MPC (Monetary Policy Committee) meetings, with the final hike in the first quarter of 2023. Therefore, the policy rate is expected to settle at 2.75% by the end of this year, and 3.00% for 2023,” Kenanga Investment Bank further said.

Meanwhile, CGS-CIMB Securities Sdn Bhd commented that BNM will likely monitor the country’s economic growth before making further decisions on future OPR increases, especially if domestic demand booms amidst the subsidies provided by the government. “In that eventuality, a third rate hike this year could even be on the cards. Next year, we price in a further 50 bps in rate hikes, putting the end-2023 OPR at 3.00%,” it remarked.

(Image: The Malaysian Reserve)

Finally, AmBank Research expects BNM to adopt a more aggressive stance in the process of raising the OPR to tame inflation. This is also to support the weakening ringgit against the US dollar and other currencies.

“We gather that a 50 bps hike one-off seems highly unlikely. We are of the view that (the) OPR will end at 2.50%-2.75% in 2022, suggesting one to two more rate hikes, with another two hikes in 2023 to 3.00%-3.25%,” AmBank Research added.

Two days ago, BNM
raised Malaysia’s OPR by another 25 basis points
, bringing it from 2.00% to 2.25%. This is the second time that the central bank has raised the OPR this year, after having increased it once in
May 2022
 from the
record low of 1.75%
.

(Sources:
The Malaysian Reserve
,
The Borneo Post
)

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UOB Cybersale Event Offers 10% Monthly Cashback For Online Spend And E-Wallet Reloads

UOB Bank is currently hosting its Cybersale Campaign for the year, which allows cardholders to earn 10% cashback when they spend a minimum of RM100 on online transactions or e-wallet reloads each month. The promotion, which is already ongoing, will run until 31 December 2021.

Open to all UOB credit and debit cardholders, the 10% cashback is capped at RM10 for each eligible transaction – with each cardholder being entitled to one online spend cashback and one e-wallet top-up cashback every month during the campaign period. In other words, you can actually win a combined total of RM20 cashback every month through this five-month promotion.

Note that the campaign defines qualifying online transactions as purchases made via e-commerce platforms or online merchants, as well as selected food deliveries (FoodPanda and GrabFood). Meanwhile, eligible e-wallet reloads are limited only to top-ups done on Touch ‘n Go eWallet, ShopeePay, Lazada Wallet, and GrabPay. Non-eligible spends, on the other hand, include balance transfers, cash advances, and easy payment plan instalments.

As always, the cashback reward will be awarded on a first-come first-served basis, with UOB allocating a total of RM28,000 to be disbursed each month. The full amount is divided between the online spend and e-wallet top-up category at RM20,000 and RM8,000, respectively – with a set number of redemptions allowed per week. Here’s the full redemption schedule for your reference:

Once you’ve earned the cashback reward, it will be credited into your account within eight weeks after the end of each campaign month. The amount will also be reflected in your account statement the following month.

If you wish to join this campaign, you will need to register your participation by sending an SMS (“U3”) to 66300. Alternatively, you can register online via a
dedicated page on UOB’s website
. Upon successful registration, you’ll receive a confirmation notice. From there, you can then go ahead and spend with your card to earn the cashback provided.

(Source:
UOB
)

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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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CIMB Introduces Lock Clicks ID Feature For Better Scam Protection

CIMB Bank has rolled out a new self-service security feature called Lock Clicks ID, which functions as a “kill switch” for both its CIMB Clicks and CIMB OCTO mobile banking app. Intended as a way to provide better scam protection, this new feature allows the bank’s customers to immediately freeze their online banking ID if they suspect that their banking account or details have been compromised.

In a statement, CIMB explained that once the Lock Clicks ID has been activated, users will be automatically logged out of their banking apps, without the ability to log back in until they have reached out to CIMB’s customer service. Accordingly, any new outgoing online transactions will also be blocked. Customers will still, however, be able to access their accounts at ATMs or bank branches.

To enable the Lock Clicks ID feature on either the CIMB Clicks or CIMB OCTO app, go to “Services” once you’ve fired up your app, then tap on “Clicks Profile”, followed by “Lock Clicks ID” and “Proceed”. Depending on whether you are using the CIMB Clicks or CIMB OCTO app, you may be required to verify the action before the process is completed. You’ll also receive a notification to confirm that your Lock Clicks ID feature has been activated, and that your account is successfully locked.

Lock Clicks ID for customers who use the CIMB Clicks app

Lock Clicks ID for customers
who use
 the CIMB OCTO app

As for unlocking your account, you’ll need to contact CIMB’s Consumer Contact Centre or visit a bank branch to perform the necessary verification. You should then be able to regain access using your existing credentials, but it would be best practice to change your password as soon as possible after that.

Chief executive officer of group consumer and digital banking for CIMB, Effendy Shahul Hamid further said that CIMB is the first bank in Malaysia that allows customers to freeze their digital profile entirely in-app, while still allowing banking access at ATMs or branches. “This self-initiated feature will add an additional layer of security as part of CIMB’s market leading initiatives in line with our commitment to ensure our customers can bank securely and confidently at all times,” he added.

(Image: FintechNews Malaysia)

The Lock Clicks ID is the latest addition to a series of anti-scam measures that CIMB has been rolling out over the past few months, in line with Bank Negara Malaysia’s (BNM) directive to all banks to
strengthen their online banking security
. Other initiatives that have also been introduced by CIMB include allowing only a
single registered device for CIMB Clicks authentication
 and making
SecureTAC authorisation mandatory for transactions of RM100 and above
.

Finally, CIMB customers are urged to update the operating system of their devices and their mobile banking app to the latest version as the new security feature will only operate on up-to-date mobile operating systems.

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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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TNG eWallet Campaign Offers Up To RM5 Cashback For Air Selangor Bill Payments

Between today until 30 June 2022, Touch ‘n Go (TNG) eWallet users will be able to earn 30% cashback when they pay their Air Selangor bills via the app, capped at RM5 with a minimum payment of RM15 in a single transaction. Additionally, they will have to be registered for Air Selangor’s eBilling feature.

Open to both existing and new Air Selangor’s eBilling subscribers, this TNG eWallet Air Selangor Payment & eBilling Cashback campaign is actually divided into three phases. Each phase will run as per the following schedule, with its own redemption cap and fulfilment period:

Campaign
Period
Redemption cap
Cashback to be credited by
Campaign A
18 – 30 April 2022
First 3,000 eligible transactions during this period
13 May 2022
Campaign B
1 – 31 May 2022
First 7,000 eligible transactions during this period
13 June 2022
Campaign C
1 – 30 June 2022
First 10,000 eligible transactions during this period
13 July 2022

For new subscribers to Air Selangor’s eBilling feature, do be aware that your subscription must be completed within three days from the payment date for you to participate in this campaign. You can subscribe to
Air Selangor’s eBilling here
.

Note as well that each TNG eWallet user is allowed to earn RM5 cashback once during every phase of the campaign. In other words, you can actually earn a total of RM15 cashback throughout the whole campaign if you do manage to obtain all the cashback rewards for Campaign A, B, and C.

For those who are paying their Air Selangor bills on TNG eWallet for the first time, you can access the function by tapping on the Bills tile in the app. From there, select “Bills”, followed by “Air Selangor”. You can then key in all the required details to pay your water bill via TNG eWallet. Payment details will be reflected in your account within three working days.

(Source:
TNG eWallet
)

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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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Digital Currencies Plunge Up To 60% Within Hours Before Recovering In "Crypto Crash 2021"

(Image: Bloomberg/Mary Turner)

After several days of continuous decline in the prices of various digital currencies, the cryptocurrency market saw a massive plunge in prices last night as panicked sellers wreaked havoc. Prices of Bitcoin, Ether, and the various altcoins plummeted anywhere between 30-60% before quickly rebounding shortly after, but the dramatic crash wiped out a majority of the gains earned for some of the cryptocurrencies since its seemingly unstoppable rise over the past few months.

At its bottom, Bitcoin – the best-known digital currency – plunged to US$30,000 levels, 50% below its all-time highs of over $60,000 in March this year. Incredibly, the rebound from the lows were swift, recovering past $40,000 before stabilising around the $38,000 mark (last seen in January 2021). This caused the cryptocurrency to lose more than US$500 billion in market value from the coin’s peak market value, evaporating all the profits gained after
Tesla Inc’s $1.5 billion investment into Bitcoin
 back in February 2021.

Meanwhile, Ethereum very briefly dove down below the $2,000 mark – over 50% below its recent all-time high of $4,100 just 10 days ago, before ranging between $2,500-$3,000. Dogecoin, the most famous meme coin, sunk to a low of $0.21 – less than a third of its meteoric all-time high of $0.70 just two weeks ago. Just like the other cryptocurrencies, the rebound was strong, surging past the $0.40 mark before stabilising around $0.35.

As the event that’s now known as the 2021 Crypto Crash unfolded, retail investors caused massive network congestions in several global digital currency exchanges, including Binance, Coinbase, Kraken, Gemini, and Kucoin. Even SC-approved exchange Luno saw network-related issues last night. All the exchanges were either offline or extremely sluggish for many users, with most citing intermittent downtime or network congestion. For instance, Binance, the largest global cryptocurrency exchange, temporarily disabled Ethereum withdrawals, whereas Coinbase said that it was experiencing disruptions before reporting that it has fixed the issue. As a result, many investors who had hoped to either panic sell or buy the dip were left disappointed.

$ETH
 and ERC20 withdrawals are temporarily disabled due to network congestion.

Thank you for your patience and apologies for any inconvenience caused.
pic.twitter.com/BbECDgDUay

— Binance (@binance)
May 19, 2021

The cryptocurrency market – in particular, Bitcoin – has been seeing a gradual decline in value over the past week following some heavy blows dealt to it. It began on 12 May, when
Tesla reversed its decision to accept Bitcoin
 as a form of payment for the purchase of Tesla cars, citing environmental concerns. This alone caused a drop of more than USD$300 billion in Bitcoin’s market value in 24 hours.

Following that, the market suffered another hit on Tuesday when
China reiterated its 2017 cryptocurrency ban
, disallowing financial institutions and payment companies within the country to provide cryptocurrency-related services, including
 trading exchanges
 and
initial coin offerings (ICO)
.

Three industry bodies – namely the state-backed National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China – released a joint statement, reminding banks and online payment platforms that they are not permitted to offer any services involving cryptocurrency due the risks caused by its volatility. In fact, any forms of cryptocurrency trading or exchange of fiat money (government-issued currency) for cryptocurrency can amount to criminal offence in China.

(Image: South China Morning Post)

In total, Bitcoin’s market value has suffered a loss of more than USD$250 billion in the last week alone. Remarkably, it is still +30% year-to-date – which is a silver lining worth focusing on. Other digital coins are also trading as per normal, albeit at a lower rate compared to the previous months.

(Sources:
CNBC
,
Bloomberg
)

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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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Shopee Survey: 60% Buyers Keen To Use E-Commerce For Self-Improvement In 2023

Shopee’s latest consumer trend survey has revealed that 60% of Malaysians are keen to tap into e-commerce to help them achieve their ambitions and find enjoyment in 2023. Titled “Past the Starting Line: Adapting to Malaysia’s Digital Consumers in 2023”, the study also highlighted that Malaysians are becoming savvier consumers even as they strive to support local businesses.

Drawing from the feedback of 2,150 Shopee buyers, the survey found that 35% of Malaysians would like to prioritise personal health and wellness as part of their New Year resolutions in 2023. On top of that, many also said they’d like to improve themselves by making better lifestyle and living choices (26%), upskilling and nurturing hobbies (23%), and increasing social confidence (16%).

To achieve these goals, 39% of the respondents said that they plan to buy more home and living products in 2023, while 38% showed interest in household goods and essentials. Another 13% said they will buy books and games to gain knowledge, and 10% would like to look into workout and travel gear.

Despite being willing to spend, Shopee’s survey respondents also indicated that they will practice mindfulness when shopping online, ensuring that the products they buy are worth the value. Specifically, 51% said they will look for greater personalisation and shopping flexibility when purchasing on online shopping platforms. Meanwhile, 32% said they will explore Shopee’s circle deals and live shopping to decide on purchasing something, and 17% would like to practise sustainable shopping and support local inclusive businesses.

Seven out of ten Malaysians further said that they aim to make smarter purchasing decisions through insightful content, including product warranties, live demos, and unboxing videos. Adding to that, 50% of survey respondents also expressed interest in supporting local businesses in Borneo, specifically, to improve their living standards. Another 35% said they are thinking about buying more local goods, with the remaining 15% saying they will not change their shopping habits.

Head of marketing campaigns of Shopee Malaysia, Kenneth Soh said that this survey is crucial in keeping Shopee informed of the various consumer trends developing in Malaysia. “This helps us channel efforts and optimally address user needs to share the future of the digital economy,” he added.

Meanwhile, chief operations officer of Shopee, Terence Pang stressed that the adoption of digital services such as e-commerce has improved and transformed the way consumers and businesses connect. In turn, consumers’ expectations when shopping, too, have shifted.

“Despite many having come online, we’re only just past the starting line in Malaysia’s digital economy, with a greater long-term opportunity to help more people benefit. In the coming year, these digital consumers will continue to shape the future of the digital economy,” Pang commented, adding that knowledge of the latest consumer trends will allow merchants to lay a more resilient foundation to reach out to more users.

Aside from the above statistics, Shopee’s survey also highlighted other key data among consumers, such as the fact that 32% of Shopee users intend to spend more time in 2023 to de-stress and earn coins through the Shopee Prizes feature. Many also want to take advantage of the ShopeeGivesBack function to donate to the underserved.

Overall, the “Past the Starting Line: Adapting to Malaysia’s Digital Consumers in 2023” survey saw 3,237 respondents in total (2,150 buyers and 1,087 sellers). It was conducted between 23 December 2022 to 5 January 2023.

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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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KPDNHEP: Price Of Covid-19 Self-Test Kits To Be Further Reduced Before School Session Begins

(Image: The Edge Markets)

Deputy minister of the Domestic Trade and Consumer Affairs Ministry (KPDNHEP), Datuk Rosol Wahid has said that the price of Covid-19 self-test kits will be further reduced by the end of September, before school sessions are set to begin. This is to ensure that it is more affordable for parents can carry out screening tests before their children begin schooling on 3 October 2021.

According to the deputy minister, the latest price will be confirmed and announced soon. “Its sales will not be limited to pharmacies and clinics as it is now, but will be expanded to other business premises such as hypermarkets and mini markets. This will make it easier for the people because not only is the price cheaper, but it is also easily available,” he said, adding that the amount will be even more affordable than the current price.

Earlier this month, the government had fixed the maximum retail price for Covid-19 self-test kits at
RM19.90 per set
, and the wholesale price at RM16. Following the announcement, pharmacies and retailers were given a one-week grace period to comply with the ceiling prices, although several online pharmacies also
reduced prices ahead of the actual compliance date
.

(Image: Bernama)

“Although the current price is considered cheap, [it] is quite high for parents, especially those whose children are still in school. A family of five children would need RM100 to buy the self-test kits and the new price will not be burdening, and the important thing is to carry out the test to ensure their children are healthy before returning to school,” Datuk Rosol further said.

Datuk Rosol also commented that KPDNHEP had met with representatives of several pharmaceutical operators’ associations to discuss this further reduction in price for the test kits, and they had agreed to the government’s recommendation.

(Source:
Malay Mail
)

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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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Tips to Maximise Benefits on Your Birthday!

Birthdays are great fun especially when friends and family alike come together to celebrate the special day. But just like all exciting occasions, birthdays too come with a cost.

We’ll clue you in on how you can save by extending the celebration to unlikeliest of people who happen to be equally excited to celebrate your born day with you!

1) Retail Outlets

Ahhh. Nothing quite beats retail therapy on your birthday and what better way to do just that than with shopping outlets offering big birthday discounts!

Some of these discounts can be as generous as 50% on all spending made on your birthday. As proof, you would either be required to produce your IC or a membership card.

Aside from regular and birthday discounts through membership cards, some retail outlets usually allow the holder a binge shopping birthday period that can go up to a week. That’s what we call value for money!

2) Dining Outlets

If you’re planning to surprise a loved one with a birthday lunch or dinner treat, be sure to pick up the phone and call the right places to make arrangements.

Most of these discounts are advertised on the dining outlets’ official website, Facebook page or even fliers that they give out – typically lasting all year round.

These discounts could just be for the celebrated or even the whole bunch, depending on size. Simply call up the desired establishment and check if they have birthday deals and discounts. Bon apetit!

3) Entertainment Outlets

Does your birthday fall on a public holiday where you find throngs of people crowding usually empty restaurants and dining outlets? Worry not, birthday boys and girls.

Kitchen and bar outlets too serve food (non-halal of course) and if you enjoy hearing the sound of alcoholic beverages (or not) clinking to the sound of your celebration, this just might be the thing for you.

Serving quality food, entertainment outlets also offer birthday promotions to encourage business. Give them a ring and set up a party at your favourite joint and they just might cut you in on a fantastic birthday deal!

Make a Wish Already!

All these amazing birthday benefits are at arms-length and the onus is on us to do a little research and make the right calls to save on birthday expenses! Perhaps the right kind of
credit card
 could help you cut back on spending too!

Have you had a birthday experience where you saved loads from? Or do you have something to add to our little list of tips up top? Fill us in at the comments section below – we’d love to hear from you!

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Could Mobile Wallets Replace Physical Wallets?

These days, technology seems to be warping forward at the speed of light as we are graced with more jaw-dropping innovations. One of which is the mobile wallet that steads itself to replace good ol’ physical wallets. How will the idea pan out? We put our nose to the grindstone!

What is a Mobile Wallet

A mobile wallet is a facility that allows you to use smart devices such as your phone, tablet or even smart watch to make transactions over designated payment terminals. Most smart phones today support the technology with the use of finger print authentication or unique password.

All you have to do is download the supported application and store your credit or debit card details on your device. When you wish to make a purchase, simply scan your mobile device at a terminal and charges would be linked to your credit, debit card or any supported monetary account.

The Upside

Mobile wallets are considered extremely convenient as you would not be required to carry and lunge around all your cash, credit and debit cards everywhere you go. Should you forget your wallet in a rush, rest assured you would not have to starve or drive home just to get it.

At some point, mobile wallets could be the cross-boundary currency platform that the world uses to bridge gaps. Imagine having a short notice business trip with no time to visit a money changer. The phone you bring along could act as your back up wallet and even provide convenience of foreign currency exchange (currently accepted overseas).

This technology has grown to the point some hotels such as
Starwood Hotels & Resorts Worldwide
 have replaced the use of physical keys with digital keys on smart devices. It not only makes it more convenient for guests, it also cuts down on the cost of having physical keys available. Where credit or debit cards are concerned, it could be a global tree-hugging solution to reducing the use of plastic (light bulb moment)!

The Downside

The downside to a mobile wallet is it’s highly dependent on internet connection. If you are unable to access a mobile connection, the mobile wallet is almost non-existent. Your phone will not be able to make payments and for security reasons, it wouldn’t be advisable to connect to a public WiFi network to use the mobile wallet.

Security has always been the biggest worry amongst consumers when using any type of online or digital transaction. Using your thumbprint or unique security code may help protect your mobile wallet but it still leaves you open to hacking.

If Apple’s iCloud and Sony’s PlayStation networks were both hacked on such major scales, it certainly can be equally easy for hackers to retrieve your credit and debit card information off your mobile device.

Smart phone battery life also is another issue when using a mobile wallet. If you leave your physical wallet behind and drain out your battery while listening to some music on your way to a coffee place, you would not be able to access your mobile wallet to make payments. This could be a serious problem to have if you don’t have a power bank or charger with you.

Availability in Malaysia

Many establishments have yet to adopt the technology. However, one of the few places you are able to use a mobile wallet is at Starbucks joints across the country. Using their loyalty program cards, one is able to reload cash that can be used and managed on the phone app itself. Upon placing your order at the store, all you would have to do is launch the app and access your account.

Scan your phone at the mobile terminal and charges would automatically be deducted from your Starbucks account. Loyalty program points and redemption would also be reflected via the app – bringing new meaning to user convenience.

Is it Practical?

Practicality of the mobile wallet is open to debate. If saving wallet or pocket space (by removing credit, debit cards and money) is your primary focus, then yes, it does makes sense. Besides that, taking your phone or credit card out of your pocket requires the same amount of time and effort to make any purchase.

When internet banking begun, many kinks and security issues came along with the convenience of sitting behind your computer screens to make payments or transfers. Over the years, it was polished and upgraded to protect its users. Despite initial apprehension, this feature has grown and is widely used all over the world.

Mobile wallets may go through a similar cycle and eventually become the payment method of the future, but it may not be a necessary step at the moment. But we reckon with a little beefing up of security, it may very well be the replacement to physical wallets. Till all that has been worked out thoroughly, traditional wallets are here to stay.

While we’re on the topic, check out our piece on
5 reasons to use a credit card instead of cash
. Do you have anything to add to our piece on mobile wallets? Fill us in at the comments section below.

Image Source : Image 2 from
Extreme Tech
 ; Image 3 from
Techspot

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Gavin Pereira

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BNM Resumes Monetary Tightening, Increases OPR By 25bps To 3.00%

(Image: The Sun Daily)

Bank Negara Malaysia (BNM) has decided to resume its monetary tightening by increasing the overnight policy rate (OPR) by 25 basis points (bps) following its Monetary Policy Committee (MPC) meeting today. With this, the OPR will be raised from 2.75% to 3.00%, with the ceiling and floor rates of the corridor of the OPR also correspondingly increased to 3.25% and 2.75%, respectively.

In its statement, BNM explained that its decision was attributed to the fact that Malaysia’s economic activity has continued to expand in the first quarter of 2023, after a strong performance in 2022. This is buoyed by factors such as strong domestic demand, better labour market conditions, and further progress of multi-year infrastructure projects. Stronger-than-expected tourism activity is also expected to continue driving Malaysia’s recovery.

“With the domestic growth prospects remaining resilient, the MPC judges that it is timely to further normalise the degree of monetary accommodation. With this decision, the MPC has withdrawn the monetary stimulus intended to address the Covid-19 crisis in promoting economic recovery. In light of the continued strength of the Malaysian economy, the MPC also recognises the need to ensure that the stance of monetary policy is appropriate to prevent the risk of future financial imbalances,” said the central bank.

BNM also noted that while domestic headline inflation has trended lower in recent months on account of moderating cost factors, core inflation will remain at elevated levels amid firm demand conditions. “Existing price controls and fuel subsidies will continue to partly contain the extent of upward pressures to inflation. The balance of risk to the inflation outlook is tilted to the upside and remains highly subject to any changes to domestic policy, including on subsidies and price controls, financial market developments, as well as global commodity prices,” it further said.

On the topic of global economy, BNM said that most regions continue to be driven by domestic demand and strong labour market conditions, and are also supported by the stronger-than-expected rebound of China’s economy. “Nevertheless, the global economy continues to be weighed down by elevated cost pressures and higher interest rates,” it said, adding that for most central banks, the monetary policy stance is likely to remain tight.

(Image: Bernama)

Finally, BNM reassured that the current monetary policy stance is slightly accommodative and remains supportive of the economy. The MPC will also continue to ensure that its policy remains consistent with the outlook of domestic inflation and growth.

BNM had temporarily paused its rate hike cycle in its last two meetings (
January
 and
March 2023
) after
raising it from 1.75% to 2.75%
 via four consecutive hikes back in 2022, following a surge in inflation. It said that the
pause was necessary for it to assess the impact of past cumulative OPR adjustments
, given that monetary policy works with a lag. Meanwhile, many economists believe that BNM is likely to raise the OPR to a
peak of 3.25% or 3.50% in 2023
.

(Source:
BNM
)

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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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Healthcare unaffected by GST says Health Minister

Healthcare
costs have bloated significantly
 in the past years. Medical insurance premiums are also rising due to the increase in claims as people struggle to afford basic healthcare. So it would appear to be good news that the oncoming goods and services tax
(GST) will not affect medical costs
.

At a Deepavali open house last night, Health Minister Datuk Seri Dr S. Subramaniam told reporters:

“Generally healthcare is GST exempt but because the industry is so wide, it has to be studied in minute detail to list out which services and products are exempt,”

That does sound a bit halfhearted.

Towards this end, he said the ministry would be carrying out an in-depth study on the GST structure and issue a detailed list of services and health products that are exempted from the GST for public consumption.

Whilst we all wait with bated breath for this list to be made known, I believe it is true enough to say that another addition to already swollen-beyond-redemption medical costs will just force more and more desperate Malaysians to turn to shadier money sources or risk their health.

More good news: With effect from June 1, 2018, the
GST
 rate of 6% will be reduced to zero percent as per government directive.

Picture courtesy of Tomasz Sienicki at Wikimedia Commons.

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Diana Chai

Diana Chai

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Why Public Servants Should Consider This Exclusive Shariah-Compliant Personal Financing

There are times in our lives when we may need a cash injection. Whether it is to kickstart the side hustle you have been planning, the home repair works you have been delaying, or to pay for emergencies, personal financing can be useful if you are in a tight spot financially.

For Malaysian civil servants as well as employees from Statutory Bodies and selected Government-Linked Companies (GLCs),
Yayasan Dewan Perniagaan Melayu Perlis Berhad
(YYP) offers Shariah-compliant personal financing up to RM250,000. Besides the large financing amount to cater for various needs, YYP’s Personal Financing-I also offers various benefits compared to conventional personal loans in the market.

1.
Designed To Be Accessible And Inclusive

YYP’s Personal Financing-I is governed by the tenets of Shariah principles and Islamic Finance which strives to offer accessible and affordable products to individuals and businesses of all backgrounds.

Applicant’s CCRIS commitment is not taken into account in YYP’s Personal Financing-I. The leniency allows individuals who have existing financial commitments to still be eligible for this financing.

2.
Transparency Through A Fixed Repayment Amount

YYP’s Personal Financing-I practices
Commodity Murabahah
 via
Tawarruq

arrangement, whereby the customer buys the commodity or funds from YYP on a deferred payment basis and appoints YYP to sell the commodity on a cash and spot basis. The underlying asset in the sale and purchase contract is a Shariah-compliant commodity and the proceeds from the sale will be credited into the customer’s account during the disbursement of the facility.

Moreover, the
Murabahah
 concept implies that the total value of the agreement is known from the start by both parties, providing transparency and effective disclosure of necessary information that would help in making an informed decision. On top of that, the repayment amount for Personal Financing-I YYP is fixed throughout the tenure.

3.
Lower and Non-compounding Late Payment Fees

As compounding interest is prohibited by Shariah principles, late payment fees of Shariah-compliant financing are typically lower than those of conventional loans. Following the concept of
Ta’widh
, Personal Financing-I YYP charges a maximum of 1% per annum for late payments.

A Fuss-Free Financing Solution

If you are a Malaysian civil servant, an employee of Statutory Bodies, or selected Government- Linked Companies (GLCs) who may require a sum of cash, Personal Financing-I YYP offers financing solution with:

Fast disbursement in as quick as 24 hours,
Easy application process,
High financing amount up to RM250,000, and
Financing tenure up to 10 years.

For more information on YYP’s Personal Financing-I, visit YYP’s website
here
.

The contents of this article do not constitute financial advice. Readers should conduct their own research before making a financial decision.

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Personal Financing

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Shariah Compliant

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Lisa Ameera Azman

Lisa Ameera Azman

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