A shortage of fish has caused prices to soar – all because of a controversial fish container ruling. See my previous blog.
Checks at several wet markets here and in Kuala Lumpur showed that prices of fish had shot up by up to 30%.
Fish distributors and wholesalers increased their cost when The Fisheries Development Authority of Malaysia requires the use of insulated fish containers to transport the fishes.
To make matter worst, these containers are supplied by a single supplier. Most porbably the supply of these insulated boxes are not enough and waiting period is long
For full report, click HERE
Source: The Star
Saturday, March 7, 2009
EPF Contributions: To Cut or Not To Cut?
Anita Gabriel, a regular columnist of The Star gives a real insight about the truth on our contributions in the Employee Provident Fund. Did you know that over two thirds of EPF contributors exhaust their retirement funds in less than 3 years of retirement? Scary, huh? What more if contributors cut their monthly contributions by 3 of a percentagepoints in support of the government's recent effort to stimulate the economy.
In recent weeks, there have been suggestions for cuts in employers’ contribution to EPF to alleviate the burden of rising costs faced by businesses amidst waning demand and the general economic slowdown
So having said that, is EPF the best retirement fund scheme? Some analysts say that today's contribution rates are not enough (to sustain us after retirement) and should be increased. Read about what Anita has to say. Click HERE.
For me, I would like as much money in my EPF as I can get. So I filed an application to revert back to 11% contribution (from 8%). I need every single cent of my EPF savings when I retire.
And as Anita mentioned. Malaysia's population is ageing and I think more family is practising one or two child policy. And just like Japan's current ageing population, I don't think any aged parent can really depend on their children for any financial support and that's why whatever and how much you put into EPF is important.
Source: The Star (Business)
Wednesday, March 4, 2009
Staying Ahead Financially in Tough Times
Many are still struggling to make ends meet despite recent decreases in the price of petrol. As a matter of fact, Malaysia may be heading towards a full time recession if current global financial situation does not make a change for the better now.
Norzuhaira Ruhanie, a writer for The Edge Daily offers a few tips on staying financially strong in a slowing economy.
1. Review Your Financial Goals
The first thing to do is review your financial goals and decide if you can stick with them or revise certain targets to suit your current needs. “You need to know where you are and where you want to get to. Taking the time to set challenging but realistic goals is vital,” says Rajen Devadason, a Securities Commission-licensed financial planner with MAAKL Mutual Bhd.
He also adds that long-term goals may remain unchanged but personal cash levels should be increased. When looking out for investment opportunities, says Rajen, take advantage of any sharp dips in the equity, bond and property markets to buy great assets that generate cash flow by way of dividends, distributions, coupons and rent. However, it is imperative that the buying is done largely out of current cash flow surpluses and not by depleting capital too quickly, he adds
2. Spend Less, Save More & Look at avenues to increase your take-home income
If cash is king, then you need to bring yourself into a stronger position. Reduce spending, work much harder to generate larger incomes and therefore get significantly larger cash surpluses, build large savings buffers and invest slowly and carefully over the long haul, says Rajen
“Ways to reduce spending could include eliminating consumer debt by paying off all credit card balances and deferring any unnecessary lumpy purchases that are not wealth-generating… like a new car if the old one is still functional,” he says.
The goal, says Rajen, should be to “try and get to the point of being able to save and invest 40% to 50% of your net income, apart from EPF, which is forced savings and which should continue at the maximum allowable rate.“The only way to create investment capital is to spend less than you earn and to carefully allocate your savings toward the emergency buffer, normal savings and well-chosen investments.”
Most Malaysians, says Ng, have been controlling their spending due to hikes in the price of many consumer goods. Look at avenues to increase your take-home income, he adds. “See if you can earn extra income doing what you already doing, but in your own time. If you are a tax consultant, for example, you could ask your boss for a commission if you secure clients outside your working hours.”
3. Have your emergency buffer
Have been putting off building an emergency buffer? While it is always important to have one, uncertain times means it is all the more crucial. The fund, says Rajen, should be between three and six months’ expenses for an employee and six to 12 months for a self-employed individual. “If you don’t have the buffer in place, your savings allocation should go into an emergency fund until it reaches the target size, based on your circumstances.”
To ensure maximum safety, the money should “be kept super safe in bank savings accounts, fixed deposit accounts and money market funds that do not have any bond component,” he adds.
Source: The Edge Daily
Norzuhaira Ruhanie, a writer for The Edge Daily offers a few tips on staying financially strong in a slowing economy.
1. Review Your Financial Goals
The first thing to do is review your financial goals and decide if you can stick with them or revise certain targets to suit your current needs. “You need to know where you are and where you want to get to. Taking the time to set challenging but realistic goals is vital,” says Rajen Devadason, a Securities Commission-licensed financial planner with MAAKL Mutual Bhd.
He also adds that long-term goals may remain unchanged but personal cash levels should be increased. When looking out for investment opportunities, says Rajen, take advantage of any sharp dips in the equity, bond and property markets to buy great assets that generate cash flow by way of dividends, distributions, coupons and rent. However, it is imperative that the buying is done largely out of current cash flow surpluses and not by depleting capital too quickly, he adds
2. Spend Less, Save More & Look at avenues to increase your take-home income
If cash is king, then you need to bring yourself into a stronger position. Reduce spending, work much harder to generate larger incomes and therefore get significantly larger cash surpluses, build large savings buffers and invest slowly and carefully over the long haul, says Rajen
“Ways to reduce spending could include eliminating consumer debt by paying off all credit card balances and deferring any unnecessary lumpy purchases that are not wealth-generating… like a new car if the old one is still functional,” he says.
The goal, says Rajen, should be to “try and get to the point of being able to save and invest 40% to 50% of your net income, apart from EPF, which is forced savings and which should continue at the maximum allowable rate.“The only way to create investment capital is to spend less than you earn and to carefully allocate your savings toward the emergency buffer, normal savings and well-chosen investments.”
Most Malaysians, says Ng, have been controlling their spending due to hikes in the price of many consumer goods. Look at avenues to increase your take-home income, he adds. “See if you can earn extra income doing what you already doing, but in your own time. If you are a tax consultant, for example, you could ask your boss for a commission if you secure clients outside your working hours.”
3. Have your emergency buffer
Have been putting off building an emergency buffer? While it is always important to have one, uncertain times means it is all the more crucial. The fund, says Rajen, should be between three and six months’ expenses for an employee and six to 12 months for a self-employed individual. “If you don’t have the buffer in place, your savings allocation should go into an emergency fund until it reaches the target size, based on your circumstances.”
To ensure maximum safety, the money should “be kept super safe in bank savings accounts, fixed deposit accounts and money market funds that do not have any bond component,” he adds.
Source: The Edge Daily
Tuesday, March 3, 2009
Malaysia may face full-blown recession
KUALA LUMPUR: There is a 50% chance Malaysia will fall into a “full-blown” recession this year, said Malaysian Institute of Economic Research (MIER) executive director Prof Datuk Mohamed Ariff Abdul Kareem.
“Technical recession is almost certain. The 1.3% (real gross domestic product (GDP) forecast in January) is considered optimistic. In fact, I think the best-case scenario will be 0.5% growth this year.
“We forecast the first half year will have negative growth but hopefully the second half will show some positive figure, which will give us 0.5% growth,” he said, adding that MIER would review again the GDP as a lot of development has taken place since the last forecast. Speaking after a seminar organised by Rahim & Co, Ariff said Malaysia’s economy might remain sluggish for a long time.
“My fear is that we may be stuck there for sometime. Contraction may not be sharp but long,” he said, adding that it could take three years (2012) before the local economy returned to normalcy.
He expected the fiscal deficit to increase to more than 6% of GDP if the second stimulus package was RM30bil, which is about 4% of GDP. Financing the deficit budget was not a problem as there was a lot of liquidity in the local financial market, which funds 93% of the government deficit.
However, he said it was “not about how much you spend, it is how you spend that matters.”
“It is about confidence and confidence depends on transparency. People want to know where the money comes from and where it’s going. Unfortunately, transparency is low in Malaysia.
“A fiscal package may only cushion impact but cannot neutralise it. But without any stimulus package, it will be worse,” he said. Meanwhile, Ariff projected the ringgit would take at least four years to reach 2.8 against the US dollar, a level which he considered equilibrium.
He said the greenback continued to be artificially strong now because central banks worldwide were continuing to fund the US deficit, and thus increasing the demand for the dollar.
In the meantime, the ringgit would remain weak and volatile, but unlikely to cross 3.8 against the dollar, Ariff said.
Source: The Star
“Technical recession is almost certain. The 1.3% (real gross domestic product (GDP) forecast in January) is considered optimistic. In fact, I think the best-case scenario will be 0.5% growth this year.
“We forecast the first half year will have negative growth but hopefully the second half will show some positive figure, which will give us 0.5% growth,” he said, adding that MIER would review again the GDP as a lot of development has taken place since the last forecast. Speaking after a seminar organised by Rahim & Co, Ariff said Malaysia’s economy might remain sluggish for a long time.
“My fear is that we may be stuck there for sometime. Contraction may not be sharp but long,” he said, adding that it could take three years (2012) before the local economy returned to normalcy.
He expected the fiscal deficit to increase to more than 6% of GDP if the second stimulus package was RM30bil, which is about 4% of GDP. Financing the deficit budget was not a problem as there was a lot of liquidity in the local financial market, which funds 93% of the government deficit.
However, he said it was “not about how much you spend, it is how you spend that matters.”
“It is about confidence and confidence depends on transparency. People want to know where the money comes from and where it’s going. Unfortunately, transparency is low in Malaysia.
“A fiscal package may only cushion impact but cannot neutralise it. But without any stimulus package, it will be worse,” he said. Meanwhile, Ariff projected the ringgit would take at least four years to reach 2.8 against the US dollar, a level which he considered equilibrium.
He said the greenback continued to be artificially strong now because central banks worldwide were continuing to fund the US deficit, and thus increasing the demand for the dollar.
In the meantime, the ringgit would remain weak and volatile, but unlikely to cross 3.8 against the dollar, Ariff said.
Source: The Star
Monday, March 2, 2009
A Home Cooked Gourmet Meal for Two for RM6.35?
What meal can you make for RM6.35? The four cooks put their budgeting skills to the test and came out with 4 unique and simple receipes- Barley Fuchok (pictured)
- Chilli Lime Prawns with Pineapples in a Skewer
- Lazyguy's Mom Crazy Rice and finally
- Chickpea Pancakes with Spicy Tomato Mash
For the receipes and methods, click HERE (source: The Star)
Sunday, March 1, 2009
Guess the amount spent and win a trip to London with Air Asia
Take part in the great Bristish tour contest by guessing how much the contest travellers spent on their trip to London. The entry that comes closest to the amount wins! Stand higher chances of winning (Trip to London for two inclusive of hotel courtesy of Air Asia and British Tourism) when you forward the contest on.I had a try at guessing Nicholas the camera buff expenditure while in London. I think it's about 420 pounds for his 5D/4N trip. I will try to determine the other travellers cost some other days. I will share what I guessed in updates to this blog later.
Let me know (Share with others) what is your guess for any of the traveller if you are having a go at it. Leave your guesses in the comments, thanks!!
What's great and fun about doing this contest is that I get to learn about cool places to visit all for under 500 pounds for a 5D/4N trip with hotel!
Tip: You need to look-up the clues in the travellers itenery and determine how much the travellers spent but it will be less than 500 British pounds
Click HERE to enter the contest
It pays to keep paying
Should houseowners take advantage of the lower base lending rate (BLR) and enjoy more disposal income with lower monthly home loan repayments? Or should they pay the same amount and complete their loan repayments faster?Financial planners urge homeowners to opt for the second option if their income level has not been affected by economic downturn.
By shortening the tenure of their loan repayment period, they pay significantly less interest in the long run.
Based on the expected reduced BLR of 0.4% which comes into effect next week, a borrower with a RM200,000 home loan over a tenure of 20 years stands to save more than RM19,000 if he continues to pay the same amount.
On the other hand, he will save only close to RM11,000 if he reduces his monthly payment in keeping with the lower BLR (see chart).
Source: The Star
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