It’s a business as usual budget

There's no major shift to lead to a stronger economy and the redress of income and social disparities.

The 2015 Budget tabled yesterday represents a business-as-usual approach with no major strategic shifts that will lead to strong industrial performance, a more sustainable economy, and the redress of disparities in incomes and social positions.

Instead the government has embraced regressive taxation, cut subsidies and increased handouts without tackling sustainable wage increases, and adopted some questionable development economics.

Najib spoke of countries such as South Korea starting with farming then moving to innovation and expertise-driven development. Unfortunately for Malaysian workers, he is failing to follow South Korea’s example. He also seems to think that our manufacturing sector matured before we shifted into services.

In fact, the growth of our manufacturing was stunted by dependence on foreign-direct investment (FDI), and the sector failed to promote widespread innovation, technology development and high wages.

Najib is focusing on gearing our services sector for export with a Services Sector Blueprint. However he has failed to realise that it was the export of manufactured goods that really drove South Korea’s wealth and standard of living.

Services are harder to export than goods because it is far harder to multiply the service capacity of an individual with technology than it is to multiply the production capacity of manufacturing with technology. You will be limited by the quality of human resources, and the problems in our education system and graduate employability have been all too apparent. We will have a tougher time generating value-added with services, and therefore struggle to produce strong wage increases that can cope with the rising cost of living.

Focusing on exporting benefits the economy because export firms invest more in research and development of technology, pursue productivity, and can generate higher wages. Exporting manufactured goods ends up stimulating the growth of services to complement manufacturing. In fact, selling competitive goods abroad allows services to piggyback on those strengths and tap into export markets.

Room to grow

At 55% of GDP in 2013, the services sector is already the largest sector in the Malaysian economy, more than double the size of manufacturing (24.5%). There is room to grow but it requires tougher policies than the government has been willing to adopt.

Budget 2015 is littered with more of the usual entry-level incentive schemes that often lead to questionable spending and little performance discipline on recipients.

Without a strong industrial policy to drive the economy forward we may just barely achieve Najib’s modest aim of entering the lowest end of the World Bank’s “high income” definition. However, most Malaysian families will not enjoy strong wage increases from the existing policies. For that to happen, we need to foster stronger export industries with better value-added prospects.

Families will also be burdened by the government’s tax policy.

Cutting the income tax rate for high earners whilst imposing GST on all income classes continues the regressive direction of BN’s fiscal policies. It will please economic elites because the lower and middle class will bear more of the tax burden.

In contrast, the Pakatan Rakyat budget called for progressive taxation measures such as a Capital Gains Tax and Inheritance Tax to replace GST. Regressive taxation in a context of weak wage improvements will only drag out the problems of inequality Malaysia faces.

The Barisan Nasional may be happy to keep lower income and rural groups in a situation of economic dependency on cash handouts, but this is neither just nor sustainable.

Cutting subsidies whilst increasing the amount and frequency of BR1M payments to three times a year will not provide much relief to very poor families that will have to tighten their belts in the months between BR1M payouts.

Budget 2015 continues the trend of uneven regional development. It offers infrastructure spending on toll highways and mass rail in Klang Valley and other parts of Peninsular Malaysia, but the large, mostly rural regions of Sabah and Sarawak, bigger than the Peninsula, only get a repeat mention of the Pan-Borneo Highway. The cost of the highway appears to have risen from RM22 billion to RM27 billion in Najib’s speech today. What accounts for the extra RM5 billion?

Missed opportunities

While projects such as the Klang Valley toll highways and the Pan-Borneo Highway have been recycled from previous years, the environment and green technology were entirely absent from the budget.

Public transport is one of the great missed opportunities in Budget 2015. With its massive support for toll highways the government is still more committed to private transport than public transport. Despite some measures for inter-city bus services, improvements in crucial inner-city bus linkages were bypassed. MRTs and LRTs need extensive bus networks to really help commuters shift from private vehicles to public transport.

A strong holistic public transport infrastructure would relieve many families from taking on the burden of servicing vehicle loans in order to get to work.

While measures to improve the lot of Sabah and Sarawak are long overdue, the timing of these initiatives appear cynical in light of the Sarawak state elections next year. Despite the massive flooding that occurred in Penampang this week, there were no measures to improve drainage in the region.

In the month in which Germany made all university education free, the BN can only offer a payment discount on PTPTN.

We must be fair and say that it is not all bad news in the budget.

The proposal to supply water and electricity to rural Malaysia is long overdue and welcome. We have concerns about whether this will be done cost effectively and not exclude remote highland communities.

We also hope that the positive sounding measures for women in the workforce will take off.

However, both rural communities and women really need a bold industrial policy that will boost wages. If not, then come 2020, they and the majority of workers may still be struggling to make ends meet.

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Who are the bullies and who are the bullied?

Only an independent study will put the issue of Malays bullied by non-Malays or vice-versa to rest for good.

Not satisfied with labelling the non-Malays, especially Chinese, as “intruders” brought over by the British to oppress the Malays, Isma is now putting forward the argument that Malays have been subjected to bullying by non-Malays since the colonial period and that the bullying continues today.

“Who are the bullied and who are the bullies” is a question asked by Mohd Zul Fahmi, a self annointed analyst of the country’s history and constitution who, just like his Isma colleague, Abdullah Zaik Abd. Rahman, is blaming all the ills of the country and the problems of the Malay/Muslim community on the non-Malays.

Many Malaysians, whilst disagreeing with Isma’s view of the Malays as the oppressed in Malaysia today, will agree that the question of who are the bullies in Malaysia and who are to be blamed for all the problems of the Malays and other communities is a reasonable and pertinent question to examine in depth.

But instead of answering this question based on Isma’s potted and racist interpretation of Malaysian history and the biased opinions of Isma and its members, I would like to suggest that a proper survey and study of the topic be conducted by a reputable and independent survey research or academic organization.

Coverage of Proposed Survey and Study

The survey can cover feedback from all the communities, Malay and non-Malay. Besides posing the question to the public on whether the phenomenon of racial bullying exists as Isma has described it and who is bullying whom if racial bullying is indeed taking place. The survey can also cover other charges made by Isma, such as alleged non-Malay and non-Muslim responsibility for the problems of the Malay community as they are to be found today.

The survey can also cover the claim made in a blog article by former prime minister Mahathir Mohamad that the Chinese (and Indians) are the real masters of the country. He wrote: “Because they (the Malays) are willing to share their country with other races, the race from the older civilisation of more than 4,000 years and who are more successful, as such today whatever they have now is also being taken away from them.”

This allegation and similar comments made by Mahathir are an important source of inspiration to ultra-nationalist and extremist forces and are partly responsible for many of the unfounded opinions circulated by Isma and similar groups and individuals on how the rights and privileges of the Malay community have been usurped by the immigrant communities and how badly they are presently doing.

Our former national leader has since modified his position by emphasising that, despite the surfeit of policies and opportunities provided to Malays, they still remain retarded in their socio-economic standing due to laziness, lack of honesty and other bad habits. This hard hitting view has only reinforced racial stereotypes on both sides of the racial divide and should not go unchallenged. The study should ask respondents whether they are in agreement or otherwise with this damning analysis of the Malay community and what policies are necessary to change such a mindset, if it indeed exists and is peculiar to the community.

Meanwhile the allegation that the non-Malays are the real owners and master of the country and that the Malays have been bullied and persecuted to the extent that they need more special protection has also been taken to a new level with religion being brought into the picture. New groups such as proxies of Jewish Zionist evangelists and other agents of foreign powers are alleged to be interfering in the country’s domestic affairs.

It is possible that Isma’s witch hunt aimed at rallying the Malay and Muslim community to stand firm against those intent on burying Islam and “want the Malay race to be in their control, want to see us insulted as our religion is raped, the dignity of our race trampled on and our country pawned to the point we cannot do anything” may end in tragic violence if nothing is done to refute them or persuade them otherwise.

Hopefully the results of the study can address the fears and concerns of Isma, Perkasa, Mahathir and other paranoid Malays and assure them that they have nothing to fear from the other communities, as well as convince them that Malay dominance in the country’s polity is unshakable and that alarm over a non-Malay takeover is totally unjustified.

Funding for the Study

To ensure that this proposal for a scientific and objective survey and study of present race and religious hot button issues now dominating the country’s discourse and media can be carried out, I am willing to fund the work in its entirety.

My only condition for the work is that a reputable and independent group of scholars from the nation’s universities and abroad should be responsible for drafting the survey questionnaire and determining the methodology; and that the findings of this study will be widely disseminated, including to the government and the National Unity Council so that quick and effective action can be taken to stop the rot in the deterioration of the country’s race and religious relations.

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MH370 may not be in the Indian Ocean

Leading airlines chief says MH370 was under control probably until the very end.

PETALING JAYA: Conspiracy theories abound about what happened to missing jet MH370 but now the respected head of one of the world’s leading airlines said he believed the plane was not on autopilot at the end and may not even be in the Indian Ocean.

Emirates Airlines chief Tim Clark told a German magazine that the failure to find any debris from MH370 raised a “degree of suspicion”.

Clark made the controversial comments in an interview with German magazine Der Spiegel.

“MH370 was, in my opinion, under control, probably until the very end,” he said.

His theory goes against current thinking that the aircraft was on autopilot until it ran out of fuel and crashed into the southern Indian Ocean.

He added, “Our experience tells us that in water incidents, where the aircraft has gone down, there is always something.

“We have not seen a single thing that suggests categorically that this aircraft is where they say it is, apart from this so-called electronic satellite ‘handshake’, which I question as well.”

The plane that disappeared was a Boeing 777 and Emirates operates 127 such aircraft, more than any other airline.

Clark said he was suspicious of the fact that no-one seemed to know where the plane ended up.

“There hasn’t been one over-water incident in the history of civil aviation – apart from Amelia Earhart in 1939 – that has not been at least 5 or 10% trackable.

“But MH370 has simply disappeared. For me, that raises a degree of suspicion. I’m totally dissatisfied with what has been coming out of all of this,” he told the magazine.

Sky News reported Tim calling for more transparency in the investigation.

He said, “There is plenty of information out there, which we need to be far more forthright, transparent and candid about.

“Every single second of that flight needs to be examined up until it, theoretically, ended up in the Indian Ocean – for which they still haven’t found a trace, not even a seat cushion.”

Australian Danica Weeks lost her husband Paul on the flight.

In response to comments from Clark, she told Channel 9 news: “He’s the man in the know, so why aren’t they talking to us? And what is all the silence about?”

Earlier this week the Australian Transportation Safety Bureau (ATSB) said latest analysis suggested the Malaysia Airlines flight went into a slow left turn and spiralled into the Indian Ocean when its fuel ran out.

An interim report pointed investigators towards the southern section of the current search zone.

“MH370 remains one of the great aviation mysteries. Personally, I have the concern that we will treat it as such and move on,” the airline chief told Der Spiegel.

“At the most, it might then make an appearance on National Geographic as one of aviation’s great mysteries,” he said.

“We mustn’t allow this to happen. We must know what caused that airplane to disappear.”

The next phase of the operation to locate the plane began following an extensive mapping process of the ocean floor.

It is seven months since the aircraft went missing with 239 people on board.

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Why PAS wants Dr M to shut up

The party is at a loss to explain its cooperation with “infidels”.

PAS is upset that former prime minister Mahathir Mohamad has criticised its Tahaluf Siyasi (political consensus) with non-Muslim parties and told him to shut his mouth.

First of all, is this the Islamic thing to do? Since PAS is an Islamic party, should not Islam be the basis of all its policies? Didn’t the Caliph Umar invite the people to criticise him if he did something wrong? Being vocal and critical—and tolerating criticism—are attitudes that are supposed to represent Islamic values.

PAS, being a member of Pakatan Rakyat, talks about freedom of speech. In fact, it even wants the Sedition Act to be abolished because this law is an obstacle to freedom of speech and freedom to criticise. Yet PAS wants to deny Mahathir his freedom to speak and to criticise.

Secondly, was it not PAS that 30 years ago called Umno a kafir or infidel party for cooperating or forming a political alliance with non-Muslims?

This was what Mahathir said in January 2013:

From its inception the leaders of the Pan Malayan Islamic Party (PMIP) now known as PAS (Parti Islam SeMalaysia), in their quest for support condemned Umno members as infidels (kafir) for cooperating with non-Muslims. This was followed in April 1981 by Hadi Awang’s statement that Umno members were infidels because Umno perpetuates the constitution of the colonialist, perpetuates the rules and regulations of the infidels, perpetuates the rules of the pre-Islamic Arabs, the Jahiliah.

The statement Mahathir referred to is what is known as Amanat Hadi Awang. The word “amanat” is Arabic. In Malay, it denotes a legacy in the form of advice or counsel from an elder.

Hadi Awang’s “amanat” is probably the albatross around PAS’s neck. It explains, in part, why Umno members are infidels for working with MCA, MIC, Gerakan, etc. Today, that same declaration is being used against PAS for working with PKR and DAP. And PAS is at a loss to explain its actions. Hence it wants Mahathir to shut his mouth.

Even if the former prime minister does shut his mouth, the Amamat is not going to go away. What PAS needs to do is explain to Malaysians why when Umno works with non-Muslims its members are infidels but when PAS does the same its members are still Muslims.

This would be the only way to resolve this issue and fend off allegations that PAS is no different from Umno.

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Social contract, form of compromise among races

The Malays have their privileges, but other races have reasonable rights too

KUALA LUMPUR: Several matters mentioned in the social contract are indeed a form of compromise among all races in the country and not at all biased towards the Malays as claimed by certain quarters, former Court of Appeal judge Datuk Mohd Noor Abdullah said.

“For example, Islam is the official religion of the federation, but other religions can be freely practised. The Malays may have their privileges, but other races also have reasonable rights.

However, some people will only ‘read’ half of it and do not even know how the contract was agreed to by the representatives of the three main races in the country,” he said as the panelist in a forum titled ‘Social Contract and the Future of Racial Relations in Malaysia’ here last night.

He said the boldness of certain quarters in questioning and challenging the national social contract was mainly due to the lack of understanding of its history and meaning.

The forum, attended by students, teachers, representatives of non-governmental organisations and community leaders, was aimed at providing greater understanding on the elements of the social contract enshrined in the Federal Constitution.

Another panelist, Prof Madya Dr Shamrahayu Ab Aziz said certain quarters had even used the social contract issue to push their political agendas.

Meanwhile, Associate Professor Dr Sarjit Singh Gill said the act to challenge the social contract was also due to the people’s lack of understanding about the other races’ cultures and religions.

“Don’t be extreme and ethnocentric in thinking that our cultures are better than others. We need to look at our similarities, rather than our differences.

“For example, some may think that the Subuh ‘azan’ (call for Subuh prayer) is disturbing, but for me, it is also a wake up call to perform my religious obligation. From there, we can see the existing similarities,” he said

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Police, immigration get tough on followers of terrorist

Police, immigration department to bar Abu Bakar Bashir's followers from entering Malaysia.

KUCHING: The Police and the Immigration Department have been instructed to cooperate with the Indonesian authorities to prevent followers of Jemaah Anshorut Tauhid (JAT) leader Abu Bakar Bashir from entering Malaysia.

Home Minister Datuk Seri Dr Ahmad Zahid Hamid said the directive was issued as 350 followers of the leader who are currently serving their prison sentence in Indonesia are due to be released next year.

“I have requested the Police and the Immigration Department to work on this with the Indonesian prison, police and immigration authorities because we will not allow former prisoners who are Abu Bakar Bashir’s followers to enter Malaysia or use Malaysia as a base to expand their militancy.

“This is because Islam has never taught militancy but Islam teaches moderation,” he said when closing the Public Order and Security 2014 seminar here Saturday.

Also present were Deputy Home Minister Datuk Seri Dr Wan Junaidi Tuanku Jaafar, the Ministry’s secretary-general Datuk Seri Mohamed Khalid Shariff and Inspector-General of Police Tan Sri Khalid Abu Bakar.

Meanwhile, Ahmad Zahid said he had yesterday instructed the Immigration Department to bar the head of the Indonesian Liberal Islam Network (JIL), Dr Ulil Abshar Abdalla from entering the country.

“The police have received several reports that when he delivers lectures or attends programmes organised by non-governmental organisations, he would not only damage the faith of Muslims but he also deviates from the teachings of Sunni the Wajama’ah (Shafie sect),” he said.

Ahmad Zahid said the ban would be enforced until he is found to be no longer a danger to Islam.

Dr Ulil is scheduled to arrive in Malaysia on Oct 18 to attend a roundtable discussion in Bukit Damansara here organised by a think tank.

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PR Sarawak wants Nancy’s head

Sarawakians had high hopes when Nancy, an Iban-Chinese-Scottish convert to Islam, was appointed Law Minister.

LAWAS: Pakatan Rakyat Sarawak (PR) wants de facto Law Minister Nancy Shukri to apologise to Sarawakians and Christians in particular for failing them.

It also wants her to tender her immediate resignation from the Federal Cabinet.

Further, the party wants Prime Minister Najib Razak and Sarawak Chief Minister Adenan Satem to publicly reprimand her.

“I was shocked at Nancy Shukri’s explanation for the decision of the Attorney-General not to prosecute Ibrahim Ali for his call to burn our bibles,” said PR Sarawak Chief Baru Bian. “By making such a statement, Nancy is perceived to be defending a known extremist like Ibrahim Ali.”

“This will undoubtedly embolden him and his ilk to carry on with their hateful supremacist agenda.”

The PR Sarawak chief, who is also the Assemblyman for Ba’Kelalan, was commenting on Nancy’s statement in Parliament on Tuesday that the AG decided not to prosecute Ibrahim on the grounds that he was only defending Islam when he made his “burn the bibles” threat.

Baru pointed out that a “wrong” under the law is a wrong. He added that as a fellow lawyer, he was appalled that Nancy has tried to defend her earlier statement by invoking the Federal Constitution.

“What sort of twisted logic is she applying to find in the Federal Constitution justification for insulting people of a different faith and calling for their holy books to be burnt?, asked an infuriated Baru. “A purported defence of one’s religion cannot be used to excuse one’s blatant breach of the law.”

Baru recalled that Sarawakians had high hopes when Nancy, an Iban-Chinese-Scottish convert to Islam, was appointed Law Minister.

Sarawakians were heartened that there would be someone in the PM’s office who understood and appreciated the true meaning of racial and religious harmony, continued Baru, “and that she would speak up on issues that are important to all Malaysians”.

The expectation, said Baru, was that she would rise above religious bigotry and stand on the side of the law.

He expressed his gratitude that Sarawak Minister James Masing joined the Christian Federation of Malaysia, Bishop Paul Tan, and right-minded Malaysians of all religions to condemn the statements made by Nancy Shukri.

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Sarawak Government aborts ‘conversion’ plan

James Masing assured no such programme planned in Belaga despite the news going viral.

KUCHING: The Sarawak Government has invoked the law to disallow an Islamic programme scheduled to be held in poverty-stricken patches of Belaga, deep in Christian country in Northern Sarawak, from October 15 to 19 by the Sarawak branch of the Peninsula Malaysia-based Yayasan Amal Malaysia.

“We decided to take this step after taking note of the opposition to such a programme being held in Belaga,” said Assistant Minister in the Chief Minister’s Department, Daud Abdul Rahman, in a statement.

“Both Jabatan Agama Islam Sarawak (JAIS) and the Majlis Agama Islam Sarawak (MAIS) were consulted and agreed with the Sarawak Government that the Belaga programme should not proceed.”

The Government invoked Section 58(1) (d) Ordinan Majlis Islam Sarawak 2001 and Section 11, Ordinan Kesalahan Jenayah Syariah Sarawak 2001 to disallow the Islamic programme scheduled to be held in Belaga.

On Friday, Sarawak Minister James Masing queried Daud regarding the programme after the issue went viral on social media but was assured by his cabinet colleague that no such programme was planned in Belaga.

Daud is responsible for Islamic affairs in the Sarawak Cabinet and has been accused in the past of being in cahoots with Muslim NGOs in Peninsular Malaysia to spread Islam among Christian communities in Sarawak.

There’s no religion in the Sarawak Constitution in line with the Malaysia Agreement 1963 and the 18 Points, two of the constitutional documents which provided the basis for the state to be in Federation with Sabah and the peninsula.

It’s not known why the Sarawak Cabinet has a Minister responsible for Islamic affairs in a largely Christian state.

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Unspeakable cruelty at animal shelter

Urgent help is needed to save hundreds of cats and dogs from a shelter in Alor Setar.

PETALING JAYA: Investigators from Malaysian Friends of Animals (MFOTA), a welfare group supported by UK-based Nature Alert, have come across widespread cruelty in an unlicensed dog and cat shelter in Alor Setar, Malaysia.

The owner Pak Mie, allegedly keeps 500 dogs and 200 cats crammed into a home and outbuildings.

In an urgent statement to FMT, Jason Tan from MFOTA said, “The dreadful sights and smells confronting you on entering this shelter are overwhelming and practically had me wrenching and gasping for fresh air.

“Dogs and cats stuffed into cages, many with horrible sores and covered in fleas. Dogs can be seen fighting because they live in such a tiny space.”

Saying it was “hell on earth” for the shelter animals, Tan added, “Imagine the urine and faeces from 500-700 cats and dogs all in one tiny area, most of which ends up in the adjoining river.”

Tan also said the shelter was unlicensed and not considered a charity, giving rise to suspicions that donations were not accounted for in terms of collection or spending.

Citing the dreadful condition of the animals there, Tan said, “There is no resident vet and a great many of the animals are in urgent need of veterinary help.”

Sean Whyte from Nature Alert added, “Someone in government is not doing their job properly. Permitting this shelter to exist, unsupervised, unregulated, full of cruelty and suffering, is nothing short of a national disgrace and needs urgent attention.”

Whyte also asked, “Will the Department of Veterinary Services urgently help these poor animals or will the government vets continue to turn a blind eye?”

Both animal welfare organisations called for the government to promote a humane dog and cat control programme, as well as urgent mass sterilisation.

Both Tan and Whyte also stressed that with a supervised adoption programme, the number of strays on the streets could be kept under control.

Whyte said, “All of which must be done in a humane way to international standards. It is not difficult, but it is very urgent.”

Tan and Whyte have called on the Malaysian government to take urgent action to help these dogs and cats, adding that international expertise could be made available.

Whyte said, “The first thing to do is send a team (it will require at least six) of vets to the shelter immediately to treat the most serious cases of neglect and remove them to other locations where they can be nursed back to health before being put up for adoption.”

He added, “This is the very least that should be done and with the greatest of urgency.”

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Save money on your gym membership!

So before you start that workout, work your way through these tips first.

The first thing you need to remember is that gym centres need members to operate.

So naturally, their sales team will lure you in with all kinds of freebies, facilities, personal trainers, and the ever popular “normal price for personal training sessions is RM xxx for 2 sessions, but because today is my sister’s cousin’s auntie’s birthday, I can persuade them to give you 3 extra sessions!” tactics that land them those high commissions.

So before you start that workout, work your way through these tips first:

Free Trial Period (7 days or more!)

Almost all gym centres offer at least a 7-day trial period so grab them! While you’re on the trial period, get comfortable with the personal trainers and consultants, because they can help you score a cheaper membership fee (and more freebies!).

Furthermore, the free trial also give you time to decide whether or not you can actually commit to the gym (if a week is difficult, an entire year seems unlikely).

Time is of the essence (Join at the end of the month!)

Another thing to keep in mind is the gym’s membership goals.

Salespeople at gyms and fitness clubs often have a quota of how many new members they have to sign on each month. Usually at the end of the month, these gyms and fitness clubs will be more than willing to work some discounted rates for you just so that they can reach their goals.

Try asking around during the last two weeks of the month and flex your negotiation muscles to get the best price.

Price VS. Pride (Negotiate, Bargain, Haggle!)

Before you join a gym, don’t just settle for their on-the-flyer price. Usually, the initial payment will include:

Registration Fee + Administration Fee + First and Last Months’ Membership Fees

For example:

RM 100 (Reg. Fee) + RM 109 (Admin. Fee) + [RM 152+RM 152] (First and Last Months’ Fees)= RM 513!

So before you say yes to the membership, try to negotiate a cheaper price. Get them to waive the registration fee or administration fee, prepare good comebacks like “My friend was here a month ago and she was offered a cheaper price!” and try to get as many freebies as possible. If you aren’t good at negotiating, then bring along someone who is an expert.

If you need a personal trainer, ask for all the necessary information before paying (like do they have qualifications, why is the rate for this particular trainer different than the others, etc).

Travel & Convenience (Save Money on petrol and book the nearest gym!)

It’s great to have a car to drive to and from the gym, but Save Money on petrol by choosing the gym nearest to you whenever possible. You don’t want to be spending RM 10 extra on petrol every week just for your gym trips, do you?

Plus, the further away you are from the gym, the less motivated you will be to get there! Additionally, make sure that the gym provides parking spaces/free parking for several hours for its members to save even more money.

Say no to upfront lump sum paments!

Most gym centres offer cheaper prices for those who are willing to commit to a long term contract (usually a minimum of 12 months). But here’s the catch: you will have to pay a hefty upfront lump sum to get the discount. Here’s an example:

Trisha’s gym membership fee: RM 100 (normal price)

Payment method: Monthly

12-year contract accumulation: RM 1,200

Trisha can get RM 20 discount on the same membership fee but only if she pays a lump sum and not monthly :

Discounted membership fee: RM 80

Payment method: lump sum for a year

12-year contract accumulation: RM 960

It might sound like a good deal, but before you commit to a contract like the above, consider the consequences: you might lose a lot of money if you stop going to the gym after a few months.

Hold It (Think Again!)

If you have a crazy, unpredictable work schedule or are always on the go and traveling, then having to pay for a whole month or year is just not worth it. Fortunately, if you know your schedule, then the best way to save some money is by calling up your gym or fitness center and requesting that your membership be put on hold for that month.

Of course, you need to do this in advance. Last but not least, honesty is the best policy. Be honest to yourself, your bank account, and the gym about your budget. If you can’t afford the gym, don’t force it out on credit cards, loans, or increase your debt in any form.

Balkish Rosly is an Investigative Journalist of SaveMoney.my, an online consumer advice portal which aims to help Malaysians save money through smart (and most of the time painless) savings in their daily banking, technology, and lifestyle spending habits.

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Insurance plans for every life stage

Insurance Protection Gives You Plan B

Life is a chock-full of unexpected events and whilst some may be pleasant; there will definitely be those which make you wish you had Plan B. That’s where the right kind of insurance comes in. If you have purchased the necessary policies, you will be afforded the peace of mind of knowing you already have an escape route. But having the foresight to know what kind of insurance policy you need and when to purchase it is key.

While we have segmented when you should get a specific policy, these are just guidelines – they’re not set in stone – so do feel free to make the ‘executive decision’ on which policies to purchase as and when necessary. Below is a brief overview of the insurance policies that you should be getting at specific points in life:

Starting Your First Job

Priority: Establishing a career, setting financial goals, including adequate medical and accident coverage

Medical and Health Insurance

How cheap (or expensive) is basic healthcare in Malaysia? With the recent allowance for medical practitioners to raise medical fees and charges, the simple fact remains that for most Malaysians, healthcare is hard to afford without access to a medical card – which allows you to claim for costly hospitalisation and surgical fees.

If you have been insured under your parents’ medical insurance policy all these years (usually up to a maximum of 23 years old), you’ll need to fork out some cash for your own after your coverage has expired. If you have a confirmed employment, you will usually obtain one through your employer.

Motor Insurance

Malaysia currently has the dubious honour of being one of the top 25 countries most dangerous to road users, with an average of 30 deaths for every 100,000 individuals – the road accident rate in Malaysia is really quite alarming! Not only that, because of the often clogged roads and frantic driving in urban cities such as Kuala Lumpur, many drivers have succumbed to road rage – just ask our good friend Kiki below:

The point is not to scare you from ever driving again, but to emphasize the importance of having comprehensive insurance protection for your vehicle, be it a car or motorbike. For a new vehicle, the insured value will be the purchase price while for other vehicles, the insured value is the market value of the vehicle at the point you apply for the insurance policy.

Personal Accident Insurance

If you rely purely on your monthly salary to support your daily expenses, you should get yourself a personal accident insurance policy – it will provide you with financial compensation in the event of injury, disability or death caused by violent, accidental, external and visible events. That is unless you are working in a high risk environment that has already provided you with a specialised PA policy i.e. law enforcement, pilot, military, and divers.

While employers traditionally provide you with PA insurance policy, some people may prefer the increased coverage provided by buying private policies to supplement those of their employers. This is especially important when you have dependents relaying on your income.

Starting a Family

Priority: Pay for mortgage loans, protection for your spouse, and financial security for your child’s education

Term Life Insurance

A term life insurance, similar to your personal accident insurance, is meant to replace your income for those relying on it should something unfortunate were to happen resulting in your death or permanent disablement. Again, having this policy is very important when you have dependents such as children and a spouse who is not employed.

Once your children are all grown up and can support themselves financially, a term life insurance won’t be too necessary.

Critical Illness Insurance

Often times policyholders will supplement a term life insurance policy with a critical illness rider or stand-alone policy. This policy gives you a lump sum benefit upon diagnosis of any of the 36 major diseases and illnesses including cancer, heart attack, stroke, diabetes including diseases often associated with old age such as Alzheimer’s disease and Parkinson’s disease.

Fire/Homeowner’s insurance

If you own or plan to own a home, you will need a home and fire insurance – this cannot be negotiated. A homeowner’s insurance will insure everything from the home itself to your belongings to someone getting injured on your property.

You will also be covered from natural disasters such as flooding and landslides. A home is potentially the biggest investment you will ever make, and many struggle everyday to afford to have a roof over their heads, so protecting your home should be a top priority.

In Malaysia, you can either take up a MRTA or MLTA insurance to insure both your family and mortgage. Of course, you will have no need for one if you decide to put your home up for sale, go back to renting, or make alternative living arrangements – move in back with the parents, maybe?

Getting Ready For Retirement

Priority: Secure regular income for retired life, update medical and critical illness coverage

Retirement Insurance

As you slowly move into this stage in life, your financial woes will mostly relate to maintaining a plan to ensure a steady flow of funds with the absence of paid employment.

Once you reach your late 30s, sign yourself up for a retirement insurance plan, also known as a retirement annuity plan. You receive a guaranteed level of income each year that can be paid out monthly. For some, their Employees Provident Fund(EPF) contributions may be enough to tide them over through their golden years, but on average, most people would have run out of funds within only 3 years.

As an example, you can start by paying a RM3000 premium per year from the age of 40 until the year you retire. Your policy will then be able to pay out a higher amount based of say RM7000 per year for 10 to 30 years after you retire.

With a retirement annuity, unlike a Private Retirement Scheme (PRS), which requires you to produce a GP (Grand of Probate) or LA (Letter of Estate Administration) to unfreeze and withdraw money in the event of your death, you will only need to make a nomination to pass on your wealth to your beneficiaries.

Know your options

The best thing to do before deciding on a insurance policy is to get yourself educated – get quotes from different insurers, read the nitty-gritty details of your policy, and whenever in doubt, ask your insurance agent questions.

This was brought you by Chester John from RinggitPlus.com. RinggitPlus compares credit cards, personal loans and home loans to help Malaysians get more for their money.

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6 tips to better budgeting

Take a tip from multi-millionaire investor Warren Buffet, who summed it up best by saying: “Don't save what is left after spending; spend what is left after saving.”

Most everyone knows that budgeting is essential to personal finance health. Without one, you’ll find your money flittering away willy-nilly with no real idea of where it’s going. But budgeting isn’t just essential for building savings; it’s also about building wealth. It may be slower than winning the lottery but it is guaranteed.

Take a tip from multi-millionaire investor Warren Buffet, who summed it up best by saying:

“Don’t save what is left after spending; spend what is left after saving.”

Tip 1: Have a vision of your future

Have you ever imagined what your life would be like after retirement? A study have shown that visualising your future self is an effective way to make all your future plans that much closer to reality.

In this report, most people who fail to plan for retirement cannot picture or relate to the people they will become, 20 or 30 years down the road, and live, breathe, and spend only in the now – seize the day instead to take control of your finances.

Tip 2: Get a set of goals

Personal budgets usually focus on the basic necessities – food, housing, and transportation. After taking expenses into account, it’s vital to decide how to prioritise the other important stuff such as savings, credit card bills, loans, and the like.

First of all, set a BIG goal! From that you can segment into a number of mini-goals that will help you reach the finish line within the desired time. For example, if you have a dream of owning your own home you’ll need to set aside a slush fund to save up enough for the down-payment.

Tip 3: Track all your spending 

Follow your money trail! Don’t throw away your purchase receipts, keep them and log in your expenses manually into your personal ledger. If you risk look like a ‘kiam-siap’ aunty walking around with a 555 notebook in hand, you can take advantage of mobile financial management apps and tools for all your expenditures.

You may discover things you have never expected to find – spending too much on lunch during working days? Time to pack food from home!

Tip 4: Pay your debts in full 

If you are tied down by debt – like a car loan and credit card debt, be sure to pay them down with any existing savings. Do not risk paying only the minimum amount on your credit card bill – even though the banks love it if you do! With charges of up to 18% p.a., you’d be stuck with paying off only the interest and barely scratching the surface of your actual debt amount.

If things are getting out of hand, try opting for a 0% balance transfer plan with a bank, to allow you to focus on obligations which are most important.

Tip 5: Allocate funds wisely 

Before parking your hard earned cash into a bank account, it is important to do your research – use our current account comparison tool to compare the interest rates, maintenance fees, and withdrawal restrictions. Will your bank offer a standing instruction for easy bill payments? Can you access accounts conveniently via online banking? These are the things you have to know if you want to manage your wealth even more efficiently.

Lastly, it is a good idea to transfer some funds into a long-term fixed deposit so you won’t be able to touch any of the money until it reaches maturity. It can act as your emergency fund for future purposes.

Tip 6: Stop keeping up with the Joneses!

This may sound strange, but recent research has states that those who frequent social media such as Facebook tend to spend more! That’s right, they’ve have concluded that the bigger your online social circle, and the more involved you are, the greater the influence it has on your spending.

So next time you see a friend’s picture with a fabulous dress, instead of taking out your credit card and make an unplanned purchase, just “like” the photo and move on!  But it’s not all bad; you can also earn exclusive deals and discounts for following and liking pictures from brands who have social media presence.

This was brought you by Winnie Wu from RinggitPlus.com. RinggitPlus compares credit cards, personal loans and home loans to help Malaysians get more for their money.

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Halim Saad fails in appeal over Renong suit

The Court of Appeal held that the civil suit was filed after the six-year time frame limitation.

PUTRAJAYA: Former executive chairman of Renong, Halim Saad has failed in his appeal to reinstate a RM1.8 billion civil suit against Khazanah Nasional Berhad and two others over his settlement to give up control of Renong Berhad.

A three-member Court of Appeal panel chaired by Justice Zaharah Ibrahim, today unanimously dismissed the business tycoon’s appeal which he had filed in a bid to reverse a High Court decision that threw out his civil suit against the three respondents.

“We find that the High Court judge’s conclusion that the plaintiff’s (Halim) claim was obviously unsustainable on the grounds of limitation period had set in, and the accord of satisfaction is correct,” she said.

Zaharah, who presided on the panel with justices Mah Weng Kwai and Varghese George Varughese, ordered Halim to pay RM25,000 in legal costs to Khazanah and another RM25,000 to former minister in the Prime Minister’s Department Nor Mohamed Yakcop and the government.

On Oct 31 last year, High Court judge Hanipah Farikullah allowed the application brought by Khazanah, Nor Mohamed Yakcop and the government to strike out Halim’s civil suit ruling that it (the suit) was filed out of time, beyond the six-year time frame as stipulated under the Limitation Act 1953.

The former executive chairman of Renong Bhd had filed the suit against Khazanah, Nor Mohamad Yakcop and the government on April 17 last year, seeking to reclaim over RM1.8 billion in compensation for selling his stake in the company.

In the statement of claim, Halim said in 2001, he owned 372,000,000 shares amounting to approximately 16 per cent of the issued and paid-up capital of Renong, making him the single largest individual shareholder in the company.

He said in November 2002, Nor Mohamed was appointed as director of Khazanah and at all material times, Renong held a substantial stake in the issued and paid-up capital of a company known as United Engineers (M) Bhd (UEM).

Halim claimed he was induced by Nor Mohamed as an agent representing the government for him to take up the deal for his exit from Renong and UEM.

He was seeking RM1.3 billion in general damages for breach of the Renong purchase obligation, another RM508 million being the value of the paid-up capital of Kualiti Alam Sdn Bhd in settlement of Halim’s losses for rescuing Fleet Group, and damages for fraudulent misrepresentation.

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Is your salary enough to afford your first car?

So how much do you need to earn in order to afford your first car? Read on to find out!

So you’ve landed that first job. Or maybe it’s that recent promotion at the first job that made you wonder if it was finally time to ditch the bus for good and buy yourself a snazzy set of wheels. Cars in Malaysia aren’t cheap as we’re all aware but just how much is it all going to set you back? And can you afford it on your monthly wage?

Owning a car is more than just the monthly repayment and no matter how good the deal looks on the car dealer’s pamphlet – calculating affordability is trickier than you think. Thankfully, with a significant amount of research, we’ve compiled all the costs associated with buying your very first car into this handy dandy article.

So how much do you need to earn in order to afford your first car? Read on to find out!

What do you need to have before you buy your first car?

Before we break down the individual costs, we should probably dive into the prerequisites involved with buying your first set of wheels. Unfortunately and in some cases thankfully, one cannot simply walk into just any auto dealership in Malaysia and purchase a car within the same day.

There are several documents and forms of identification that you will need to have in your possession before you buy your first car, especially if you plan on taking up a car loan.

So here’s what you will need to have before you walk into any auto dealership to buy your first car.

For general registration, you will need

1: A Malaysian Driver’s License (Competent Driving License) & Valid Malaysian NRIC (myKad)

2: Passport with valid Visa (For non-Malaysians only)

If you intend to take up a car loan, you will need

1: Official Payslips dating back at least 6 months (for salaried employees)

2: Official company accounting slips (for business owners)

3: EA Form or EPF statement (required by some banks)

4: Guarantor (required by some banks)

What are the costs involved with buying your first car

Example: The Perodua Myvi

Fact: the Perodua Myvi has been the best selling car in Malaysia from 2006 to 2013
Question: Why do Malaysians seem to absolutely adore the Perodua Myvi?

The Perodua Myvi is the quintessential perfect car for first time car owners. The Myvi is not just extremely affordable (when compared to other name brands) but also easy to handle and economical on fuel.

A brand new 2014 Perodua Myvi 1.3L EZI  will sell for RM44,936.45 in Peninsular Malaysia.
Conversely, the price of a used 2009 or 2010 Perodua Myvi 1.3L EZI will cost you around RM31,000 (according to motortrader.com.my). As expected, the Perodua Myvi actually carries a fairly decent resale value.

For the purpose of illustrating the cost of buying your first car, we’ve decided to use the Perodua Myvi as our automobile of choice. Cost of ownership can be split into two distinct categories; established costs and volatile costs.

Established costs represent costs that are “set in stone” and you can expect to bear such as monthly car loan repayments, road tax etc. Volatile costs represent costs that may differ depending on the situation such as petrol consumption etc.

The established costs

1: The downpayment 

Most banks will require a minimum downpayment of at least 10% of the total cost. However, some banks might offer special deals with 0% downpayment, though this will ultimately result in higher interest payments for you. When it comes to downpayments, always remember that more equals less. The higher the downpayment, the lower the interest charges.

Brand new 2014 Perodua Myvi 1.3L EZI
Minimum downpayment of 10% x RM44,936.45 = RM4,494.45

Used 2009 or 2010 Perodua Myvi 1.3L EZI
Minimum downpayment of 10% x RM31,000 = RM3,100

2: The subsequent monthly repayments

Banks in Malaysia will typically offer car loans for terms of either 5 years or 9 years. Choosing a 9 year term will mean a lower monthly repayment, though with more interest. Conversely, taking up a 5 year term will slap you with a higher monthly repayment but with less interest.

Given the wide variety of different car loans offered by banks in the market, sifting through the details of every single one is (suffice to say) utterly exhausting. In fact, the thought of filling up a mock excel sheet filled with interest rates already brings a tear to this author’s eye. So instead of trekking through each and every bank, you could instead use a compare website like RinggitPlus.

Using the compare tool on RinggitPlus, we can observe that the Public Bank Aitab Hire Purchase-i offers the lowest interest rate in the market for both new and used cars (but then, always remember that the rate you get will depend also on your credit rating and the type/make of car you are purchasing). So how much is the monthly repayment?

Brand new 2014 Perodua Myvi 1.3L EZI
Loan of (RM44,936.45 – RM4,494.45 downpayment = RM40,442) = RM458.72 every month for nine years

Used 2009 or 2010 Perodua Myvi 1.3L EZI
Loan of (RM31,000 – RM3,100 downpayment = RM27,900) = RM337.38 every month for nine years

Disclaimer: The figures above reflect nine year loans, if you want to find out the monthly repayment for a five year loan, you are more than welcome to check out the RinggitPlus car loan compare tool.

3: Car insurance

Car insurance premiums will vary from person to person depending on a variety of factors such as engine capacity etc. In the case of our first time car owner, the cost of insurance might be a tad bit steep. However, if he/she manages to survive through an entire year without making a claim then he/she can expect a drop in the cost of the premium (no claim discount).

If your windshield is still a little foggy regarding car insurance, then you can check out our car insurance buying guide.

Brand new 2014 Perodua Myvi 1.3L EZI
Monthly premium of RM90

Used 2009 or 2010 Perodua Myvi 1.3L EZI
Monthly premium of RM85

4: Road Tax

Police road blocks are everywhere these days, which means that if you skip out on your road tax payment then you absolutely will get B-U-S-T-E-D. Thankfully though, road tax is Malaysia is relatively cheap when compared to our neighbours in the south, which means that you have absolutely no excuse for missing your payment.

Brand new 2014 Perodua Myvi 1.3L EZI and Used 2009 or 2010 Perodua Myvi 1.3L EZI
Annual road tax of RM70 (1300cc car) = RM5.83 per month

Total Established Costs:

The Formula:
Downpayment + monthly repayment + car insurance premium + road tax

Total established costs for a brand new 2014 Perodua Myvi 1.3L EZI =
RM4,494.45 downpayment + RM554.55 monthly (nine year loan)

Total established costs for a used 2009 or 2010 Perodua Myvi 1.3L EZI =
RM3,100 downpayment + RM428.21 monthly (nine year loan)

The volatile costs

1: Petrol

Calculating the exact cost of petrol for an entire month can be somewhat challenging. Your expected monthly petrol costs will depend directly on your travelling habits. If you frequently spend your weekends blazing through the Klang Valley like an episode of “Speed Racer”, then you can definitely expect a decked out petrol bill.

According to Perodua, the Myvi 1.3L EZI carries a fuel economy of 17 kilometers per liter (RON95 costs RM2.10 per liter). Assuming that you travel everyday from Subang to Bangsar for work, you can expect to travel an estimated 40 kilometers everyday (round trip). Discounting the cost of getting stuck in bad traffic, then you can expect a daily petrol cost of approximately RM5 (at minimum).

However, a traffic jam free Malaysia is an elusive dream. So for the purpose of realism, we shall assume a daily petrol cost of RM8.

Minimum monthly petrol cost for brand new 2014 Perodua Myvi 1.3L EZI and Used 2009 or 2010 Perodua Myvi 1.3L EZI = RM8 x 30 days = RM240 per month.

Disclaimer: The figure above is an approximate assumed amount. Of course this will vary with usage.

2: Car Repairs

Car accidents can happen at any time (or place) even if you’re an ultra safe driver. While the fault may not always be yours (or so you tell yourself), the cost of the damages could very well be yours to bear. But wait, I have car insurance, aren’t I protected from any damage arising from accidents?

Unfortunately, making a car insurance claim (even for a tiny little dent) will only make your subsequent car insurance premiums more expensive. Sorry to burst your bubble but car insurance companies are not in it for your welfare (its a business not a charity). So why spike up your insurance premium if the damage is only cosmetic?

Determining the “person at fault” at an accident scene is tricky business and in most cases, ends up becoming a meaningless blame game of “who hit who first” or “my lane, my right of way”. Think that it can’t get any worse? Well, what if the perpetrator who just hit your car decided to scoot away from the crime scene like a bat out of hell? Are you going to pursue and re-enact the car chase scene from “Ronin’?

But are car repairs limited to just accidents? No! There is always the chance that your car can break down at any time, especially if you are driving a used car with a heavy amount of mileage. Fortunately, brand new cars usually come with at least 3 years of warranty against manufacturing defects such as faulty batteries etc.

For the very reasons listed above, it is always advisable to tuck away a small sum of money every month for “emergency car repairs”. For starters, RM100 a month should suffice (unless you plan on getting rear-ended on a daily basis). If you manage to keep your “hot wheels” out of trouble for at least a year, then you’ll have RM1,200 nestled safely in the bank, which should be more than enough to pay for broken windows, minor re-sprays, small dents, busted batteries and every other adventure you find yourself in.

Monthly savings for “emergency car repairs” (Optional but highly recommended)
= RM100 per month

3: Car Maintenance

Keeping your car clean and shiny is as easy as breathing (okay, maybe not that easy but you get the point). All you really need to “return your wheels to factory condition” is a bucket of water, soap, a sponge, a dry cloth, effort and a set of strong wrists. Unless you have a weird fetish for dirty cars, then keeping your car clean should be on your list of priorities. A medium sized bottle of car soap costing RM10 will probably last you for up to 30 washes. Assuming that you wash you car twice a week, this translates into a 15 week supply.

Washing aside, it is also in good practice to wax your car at least once every 2 weeks. Applying wax to your car creates a protective layer that works towards repelling dirt and water. A bottle of car wax from brands like Soft 99 will cost around RM40. Each bottle should last you around 3 to 5 months depending on how many layers you apply each time.

Car maintenance cost
= car soap + car wax
= RM10 + RM40
= RM50 (3 months)
= RM17 per month (rounded)

4: Parking

Want to escape the smouldering heat of El Nino? Then why not visit one of the over 40 air-conditioned malls located within the Klang Valley. Unfortunately, some malls (like the ones we touched on in a previous article) come with insanely expensive rates that will cost more than your lunch.

Thankfully though, there are other the malls within the Klang Valley that do offer fairly reasonable rates for weekend parking. For example, Sunway Pyramid has a weekend rate of RM3 for the first 2 hours and RM1 for every subsequent hour. Assuming that the average person spent approximately 6 hours every week at a mall with parking rates similar to Sunway Pyramid, then this would work out to a cost of RM7 every week.

Parking charges
= RM7 x 4 weeks = RM28 per month

Disclaimer: For obvious simplicity sake, this figure does not include parking for home and work.

Total Volatile Costs (according to estimates):

The Formula:
petrol + car repair savings (optional) + car maintenance cost  + parking charges =
RM385 per month
What is the monthly cost of owning a car?

The Formula:
Monthly Costs (after downpayment) =
monthly repayment + car insurance premium + road tax + petrol + car repair savings (optional) + car maintenance cost + parking charges

Cost of owning a Perodua Myvi
Monthly cost of owning a brand new 2014 Perodua Myvi 1.3L EZI =
RM554.55 monthly (nine year loan) + RM385 = RM939.55

Monthly cost of owning a used 2009 or 2010 Perodua Myvi 1.3L EZI =
RM428.21 monthly (nine year loan) + RM385 = RM813.21

How much do I need to earn every month to afford my first car?

The Formula:
Monthly cost of owning a car + L =
monthly repayment + car insurance premium + road tax + petrol + car accident savings (optional) + car repair savings (optional) + parking + L

Minimum income required to own a Perodua Myvi
Minimum income required to own a brand new 2014 Perodua Myvi 1.3L EZI
= RM939.55 + L

Minimum income required to own a used 2009 or 2010 Perodua Myvi 1.3L EZI
= RM813.21 + L

I’m lost….What’s “L”??
“L” represents your cost of living. To put it simply, “L” encompasses your entire monthly living expenses such as your rent, food, entertainment etc. If you want to find out how much you need to earn in order to afford your first car, simply add your living expenses to either of the two figures above.

What do you think about the calculations used in this article? Are they too high? or too low? Is there anything you want us to add? Leave a comment below expressing your grief/happiness.

Joshua Ong is an Investigative Journalist of SaveMoney.my, an online consumer advice portal which aims to help Malaysians save money through smart (and most of the time painless) savings in their daily banking, technology, and lifestyle spending habits.

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