25% Tax for Private Retirement Scheme (PRS) ?

Christmas is coming to town, but before that, it was also the time when many people are rushing to enroll/top up their Private Retirement Scheme (PRS). Why? Main reason is they want to enjoy the tax relief given of up to Rm3,000 per year. However, social media has over-took the whole atmosphere with the purported 25% tax on PRS. Is this true?

All I want for Christmas is Tax-Free...

Bursa Malaysia's eStatement

Today, Bursa Malaysia introduced eStatement services to CDS account holders. It enables CDS account holders to receive statements and notices directly from Bursa Malaysia via email.

What's the benefits?

1. To receive CDS statements and notices efficiently and on a timely basis with NO extra cost
2. To receive CDS statements and notices directly to your personal email
3. Minimize risks of not receiving your CDS statements and notices
4. Less cumbersome to keep hard-copy statements compared to soft-copy

For many of us, this is definitely an environmental friendly way of communicating. Also, it effectively reduce the cost of doing business for Bursa Malaysia. Once it implemented successfully, the profits of Bursa should be better... Considering to invest in Bursa shares now?

How to register?

DBKL hikes assessment rate for the sake of hiking?

Maybe the timing was not right, DBKL is in hot water these few weeks, lambasted by KL citizens for its proposed assessment rate hike up to 200%. Just when GST is coming to town, coupled with the fact that the more expensive electricity bill next month, citizens were feeling the pinch in their pocket.

What's the reason for the hiking?

Answer: "The last increase was more than 20 years ago."

As simple as that? It must be joking us... Why don't you lower down your salary because you haven't done so for past years? We're not objecting about the increase for sake of objecting. But, some form of better reason should be justify for the proposal.

Is DBKL running out of money?

Top 3 Common Investing Mistakes

When coming to investing, do you wonder why retail investors always lose out? What are the common mistakes they made? In this article, Finance Malaysia blog pointed out the top 3 investing mistakes by retail investors.

The 3 common mistakes:

5 Reasons WHY Employees Left a Company

Understanding your employees thinking nowadays is crucial to retain top talents in your organization. What's the reason behind for them to press the "Resign" button? Detecting it early and replacing it with a "Stay" button before it is too late.

Please be mindful that the generation now is different, their thinking is different, their feeling towards a job is very much different. As such, employers or top management should find out the determining factor of employees going to resign. Let's look at the reasons...

Budget 2014: Property Sector Hit Hard by RPGT and DIBS ruling

As widely expected, property sector would be one of the hardest hit sector in view of the proposed cooling measures to be imposed. Out of the 3 tightening rules forecast by Finance Malaysia, 2 already Bingo! (Read our previous articles regarding property sector "3 Tighter Rules for Property Sector?" and "3 Critical Factors to watch out by Year End")

These cooling measures announced highlighting that government will not hesitate to curb property speculations and to ensure a affordable property prices. Of course, property developers will be the one screaming painfully.

The 3 Key Measures:

Budget 2014: Good to have GST ?

Definitely, one of the hottest debate in Budget 2014 would be the implementation of 6% Goods and Services Tax (GST) starting April 2015. Although it was opposed strongly by opposition parties, government pushed ahead with its implementation emphasizing GST as a "fair and comprehensive" tax as the current tax system has many weaknesses.

Why GST is a MUST ?

Money Management Concept of 70s, 80s, 90s

When come to money matters, different generations have their own thinking. Before reading on, please listen to your heart deep down inside, what is your thinking? Hahaaa.... Bingo? Let's see...

70s: Saving

UnTold EPF RM2500 Death Benefit?

Lately, there is a chain email spreading across social media regarding EPF Death Benefit as below:

" ATTENTION to everyone who has an EPF account !!! No matter how old are you, no matter how long you have held your EPF account, no matter how much money you have in you EPF account, and matter how long you have paid for your EPF, according to Government Law, EPF will need to pay RM 2500 to an EPF account holder's family when he/she died (family members need to claim the RM 2500 within 2 months). EPF never inform us about this, I reckon very few people's family did actually receive this RM 2500 when his/her family member died because not many people know about this. Where did this RM 2500 goes when the died's family did not claim for RM 2500? Someone's pocket ??? We don't know! So please bombarded this info to all your families, relatives, colleagues and friends, let them know about this info and remember to claim RM 2500 when his/her family die. Don't let this RM 2500 goes to someone's pocket !!! "

Is this true? Below is the respond from EPF:

5 Unusual Tricks to Help you Save Up

Saving money is not always as easy as it first seems, and all those good intentions and budgets can fly out of the window without you even noticing – so why not try some more unusual money saving tips? Here are five of our best tips to help you save up!

1. Never pay with coins
   

Why Gold and Silver? Why Online Store?

Are you first time gold and silver buyers? Why don't you invest in these popular metals? If you did so, you have had a wonderful investing experience after 2008 global financial crisis. But, do you really understand these metals? Were they really precious (especially now)?

Traditionally, gold and silver were one form of exchange. Because of the invention of fiat money, they were being turned into some short of "back-up" currency, in case our fiat money system go burst. It's natural when things go wrong, gold and silver tends to appreciate in value. In other words, people hold precious metals to preserve the value of their assets.

3 Reasons Why Gold and Silver...

3 Tighter Rules for Property Sector? (Sept 2013)

Prior to Budget 2014 (to be tabled next month), speculation has rift up on a few proposal to tighten the rules, especially on property sector. Following the outcry from public stating the alarming high property prices, measure should be taken to tackle the issue before bubble was formed.

The Bubbling Biz...

Work Ethic of 70s, 80s, 90s

Different generations have their own view on working. You like it or not, working is part of our live. No work = No life. However, this equation has since changed to "Working = No life". Do you agree?

Generally, those born in 70s were perceived to be loving their job. They work hard mainly because of 3 meals/day. For them, a secured life means having a stable job with stable income. They believe that with every efforts you put in, that will reward you back later. As such, over time (OT) is nothing for them.

As a responsible 70s, losing their job is a serious matter they tend to avoid. That's why they usually found another job first, before resigning.

How about 80s?

How Much You Need To Save If You Ever Want To See Your Kids Graduate?

In an age where the common degree has become a pre-requisite and not so much an advantage, ensuring that you have enough to see your children through a reputable university has inadvertently become one of the most important responsibilities you’ll face as a parent.

Unfortunately, knowing how much to save for your kids’ tertiary education is not an easy question to answer.  In fact, it is downright complex in view of the vast differences in costs from degree to degree, university to university, and country to country.  And even for those who do have a number in mind, there is still the question of when you should start saving, using which savings / investment vehicle.

If you have been wondering about your financial capabilities to finance your kids’ tertiary education, or you have been seeking a workable method to save a sizable study fund for your children; allow iMoney to shed some light on this matter with their latest infographic:

Lesser Amount can be Withdrawn for EPF Members Investment Scheme effective January 2014

Are you an EPF member who withdraw money out for investment scheme? Then, this is a very important news to you.

Effective January 2014, the minimum basic savings required in Account 1 was revised upward. This will affect all of YOU who withdrawn certain amount from EPF account 1 for eligible investment purpose. Higher limit means lesser money you can withdraw from EPF in the future.

How much will be increased?

Should or Would Government Privatizing MAS? (Aug 2013)

Both of our ex & current Prime Minister already voiced their views regarding this matter. Yesterday, our ex-PM said Government should SELL MAS if it can be run more effectively by private sector. Meanwhile, when asked, our current PM said there was no plan to privatize MAS now because it was on track to its turn around plan under the helm of new management. So?

In fact, this was like a million ringgit question for many speculative investors. Maybe, they or YOU were hoping for the deal to materialize if you bought the shares just recently. Anyway, it won't be as easy as you might think.

Interviewing 非常好歌 Superstar - Quek Shio Yee

Learned piano and violin since young, started writing songs when in high school. This is the background of new born superstar - Quek Shio Yee. After wining the BEST SONG with Lexi Chan, Finance Malaysia blog managed to grab the opportunity to know her better.

When asked about her future direction, the UCSI undergraduate yet to plan for it. Hmmm... I guess her fans out there for sure would loved to see her on stage again. Right?

Full Interview here:

Understanding the Habits of the Rich

Fancy getting rich? Here are the rich man’s habits.

Seminars, webinars, Social events/ gatherings, book launches... These right here are some of the main events circled on the rich people’s calendars!

Ever wonder why?

How to Become a Financial Planner?

After the two series of article on Financial Planning and Financial Planner. Some of you may asked: "Is it difficult to become a Financial Planner? What's the requirement needed?"

Hmmm... Good news is it is not difficult, but the bad news is it's not easy either and the requirements for sure will be raised in the future.

So, how?

New Fund: Kenanga Asia Pacific Total Return

After merging with ING Funds Berhad, Kenanga Investors Berhad launched its first new fund of the enlarged family. In this uncertain global economic environment, how much return can a fund generated was the main concern for many investors. Want to get higher return? Then, we cannot runaway from higher volatility! Are there any balance in between?

Yes. To cater for such investors, this new fund aims to provide a compounded rate of return of at least 10% per annum over market cycle (5 years) by investing in a diversified portfolio of Asia Pacific equities.

3 Reasons WHY it benefits you:

A Guide To Home Loan Refinancing

For those who have never been exposed to the concept of “refinancing”, home loan refinancing may seem like a baffling notion.  After all, what good could possibly come from getting a new home loan… just to pay off your old one? Wouldn't you just go back to square one after the whole process? These could be some of the questions you’re asking yourselves, and understandably so.

In reality, home loan refinancing is a widely-adopted practice with many potential benefits. Home buyers far and wide undertake it in order to lower the interest they’re paying on their home loans, reduce their monthly loan repayment amounts, and generally alter their loan terms to better suit their financial needs.  In fact, some even refinance to free up cash riding on the inherent values of their properties!

[Property] 3 Critical Factors to Watch Out by Year End (July 2013)

Ever since the property boom started in 2009, right after the global financial crisis, investors were laughing to the bank. But, can these sustain until next year? Many analysts doubt so. Why?

The most crucial determining factors might uncover itself in the next few months, approaching year end. In short, we have summed out to the below 3 critical factors:

New Fund: AmAsia Pacific REITs Plus

Do you remember the AmAsia Pacific REITs fund? I'm sure you have heard about it. Yes, backed by its success story, AmInvestment Management Bhd has launched a new version called AmAsia Pacific REITs Plus. The word "Plus" is used as a continuation of the AmAsia Pacific REITs and the fund may invest in listed equities in the real estate sector.

The fund aims to provide regular income and to a lesser extent capital appreciation over the medium to long term (at least 3 years) by investing in real estate investment trusts (REITs) and equities in the real estate sector.

What's the strategy?

"X"pensive AirAsia X IPO ?

Slate for its debut trading tomorrow (10th July 2013), can AirAsia X follows the footsteps of its sister company AirAsia? What would happen tomorrow pretty much depends on the fair value given by various research houses.

AirAsia X is a leading long haul low cost carrier since operating on Nov 2007, primarily in the Asia Pacific region. Currently, it serves 14 destinations acorss Asia, Australia and the Middle East, with 11 A330-300 planes.

New Fund: Eastspring Investments Target Income Fund 2

In the current low interest rate environment, investors continue to chase for yields which resulted in strong demand for close-ended bond funds that potentially offers higher return than fixed deposits. Keeping this in mind, Eastspring Investments is launching a new fund.

The fund endeavors to provide regular income during the tenure of the fund (3 years), by investing in local and/or foreign debt securities.

Investment Strategy

Latest BNM measures to Curb Excessive Household Debt (July 2013)

Hot from oven. Bank Negara Malaysia (BNM) today announce some measures to address the alarming household debt among Malaysians. As reported, household debts have continued to increase at a strong pace, averaging at an annual rate of 12% over past 5 years. While this has been supported by positive income and employment conditions, in the more recent period, there has been a growing trend in the offering of financial products that are not in the long-term interest of consumers.

What does this mean?

This includes extended financing tenures of up to 45 years for house financing and 25 years for personal financing!!! Wow... Is it too long the tenure? While this may reduce the monthly repayments, in the long run, this increase the overall debt burden of households. If we don't stop this kind of practice, it will encourage excessive debt accumulation by households and increase the vulnerability of this sector.

Hence, BNM has to take actions...

New Fund: OSK-UOB Capital Protected Essentials Fund

As the world population continues its growth led by the emerging countries coupled with the higher purchasing power, the demand for the essentials or basic commodities (i.e. those that we use daily such as cotton for clothing, corn and sugar for food, crude oil for energy) have significantly increased. Further, with the imbalance of increase in demand and slower growth in supply, this has also resulted in a situation where consumers now and going forward have to pay more for fuel, clothing and food.

With the expectation of further increase in the prices of these essentials or basic commodities, OSK-UOB has established a fund that will capitalize on the price movements of these essentials or basic commodities, which is OSK-UOB Capital Protected* Essentials Fund.

Fund Asset Allocation:

Understanding US Treasury & Yields

Just when the whole world coming for a rout, only US treasury yields shoot up to multi-months high. Investors might wondering why this happen. Some of our readers are posting these kind of question to us. We think this article might helps.

US Treasury = US Government Bond

The Rise of Financial Planner

As promised, Finance Malaysia blog would like to educate public at large on the importance of personal financial planning after knowing that most Malaysians falls into debt traps because of poor financial planning. After finding out, we're surprised that actually not many of us know that there is this NEW distribution channel in financial place --- Financial Planner.

The NEW Alternative...

Why so FEAR if US Federal Reserve stop QE ?

Global shares tumbles to multi-months low, especially in Asia whom did well year-to-date thanks to Japan's Abenomics. Commodities and gold also can't spare from the bearish sentiment across investment markets. Reason? US Federal Reserve may stop/scaling down their bond-purchase program. Huh!!!

Is this the real reason?

New Fund: AmIncome Flexi 3 Bond Fund

Following the success of the 1st and 2nd tranches of AmIncome Flexi, which were launched on Sept 18 and Dec 12 last year, with Rm100mil and Rm250mil in asset under management respectively, AmInvest once again would like to satisfy investors appetite.

"Given ample liquidity from the various central bank easing measures, the bond market is expected to be well supported in 2013". The 3 year closed-ended fund, targeted at investors seeking regular income and potentially higher returns than fixed deposits but with lower risk than equities.

How to do that?

Update: Gold Price Outlook (May 2013)

Would you cut loss? Would you cost averaging? Or, would you accumulate at current level? These are a few questions from Gold investors since March 2013. What a difficult questions to answer... Here is our view on gold prices currently:

Our answer is to cost averaging or accumulate now, and hold it at least until September 2013. Why? Let's read on...

Do YOU understand what is "Financial Planning"?

We can't deny that every one of us can't run away from financial matters, thus, planning it wisely would put you on a better path to achieve financial goals as desired. Does this called "financial planning"? Hmmm... Many people think that financial planning is for high-income earner and the rich. But is this true? If not, what is it actually?

Generally, financial planning is a journey to achieve financial goals set with a comprehensive and systematic step-by-step process. It involves taking a broad view of one's financial affairs covering many areas of wealth management.

What's Included in Financial Planning?

EPF Rules on Nomination (MUST Read)

There is a chain email spreading about some EPF rules, that makes members worry such as below:

If ONE of your nominees in the EPF nominees list dies, automatically the whole arrangement (EPF Nominees list) is VOID. Meaning if, you only put in ONE name & unfortunately he/she dies before you? Automatically EPF will channel your EPF money to trustee of AMANAH RAYA upon your death.

Upon surrender to trustee of AMANAH RAYA, your children will have to battle the money through 3 channels;

• Majlis Agama
• Pejabat Tanah
• Mahkamah

Is it TRUE ???

New Fund: OSK-UOB Absolute Return Fund

With market continuously rotating between "risk-off" and "risk-on", an absolute return mandate with the adoption of a dynamic asset allocation approach would be a good vehicle to ride out the volatility. With the fixed income market having outperformed over the last 5 years, there is a high possibility that good quality equities - those with earnings growth and clarity supporting healthy dividend payouts would find favour.

This is a wholesale fund which aims to achieve medium to long term (3 - 7 years) capital appreciation through investments in equity and equity related securities of companies, and exchange traded funds with the potential to deliver total return in excess of the fund's benchmark return (8% growth per annum).

Investment Strategy

A Malaysian Guide to Home Buying Fees & Charges

Like any other country, buying a house and taking a home loan / mortgage in Malaysia involve legal fees & charges - which many people fail to take into consideration especially when they’re buying a property for the very first time.

So to all Malaysians buying your dream houses right now, allow iMoney to show you ALL the fees and charges involved when you buy a house or apply for a home loan.

13th General Election and the Property Market

General Election is coming. One of the hotly debated topic would be the escalating house prices and the needs to provide more affordable houses to Rakyat. In line with that, iProperty.com has done a survey on "The 13th General Elections and the property market" with 2275 Malaysians respondents. What did they said?

Created by Iproperty MY, the number one website in Malaysia. Whether you have a house for sale or are looking to buy.

3 Possible Election Outcome & Share Market Reaction

* Note: This is NOT a political post. Instead, we're talking about share market movement based on possible election outcome. Abusive comments are strictly prohibited and will be remove automatically.

Local investors have been staying sideline for months ago. Do you started to feel itchy now? Honestly, this is the feeling of mine as an investor, from being active to passive lately. I can't wait to start investing again in share market. However, we shouldn't simply jump in next Monday, right? Let's see the 3 possible election outcome and how market may react accordingly...

OUTCOME #1: BN retained power

The 3rd Way of Shopping ?

Most probably you are reading this while shopping, waiting for your wife/girlfriend trying on a new dress or shoe? Congratulation... You're never be more relevant to read this article. Wait, what is the 3rd way?

1st way ---> Cash

2nd way ---> Credit Card

3rd way ---> ???

Introducing the NEW concept of shopping...

How to get your PRS Tax Relief statement from PPA ? (April 2013)

In conjunction with the NEW tax relief available from YA2012, many Private Retirement Scheme (PRS) contributors are wondering how can they get the tax statement for income tax filing.

To address your concern, here you go... (If you don't know what are we talking about, please find out "What is Private Retirement Scheme?")

To recap, contributions into a PRS scheme can enjoy a tax relief of up to RM3,000 from YA2012 - YA2021. If you did contribute some money into a PRS scheme in 2012, congratulations, you're entitled to PRS tax relief for YA2012. If you haven't, no worry, you still got time to start contributing before the end of this year.

Back to the topic, please follow these few easy steps to get it:

Personal Income Tax for YA2012

Finance Malaysia hopes this article doesn't come late to give you some info on Personal Income Tax filling for year of assessment 2012. Maybe due to the general election, which had diverts our attention lately. Lol. Anyway, do remember to file your income tax before 30th April oh!!!

Well, here is the list of Personal Tax Relief for YA2012. And, I would like to highlight to you, in RED color words, some changes/differences from previous year.

Personal Tax Relief for YA2012

• Item No.11:
  This would replace Item 10 from YA2012-YA2017 with higher amount of RM6,000
• Item No.23:
  Private Retirement Scheme (PRS) is the NEW item which can help you reduce tax further with additional RM3,000 tax relief from YA2012-YA2021. As such, Item No.22 would be replaced until after YA2021.

All other items remained the same. Do reduce your tax payable by maximizing the tax relief amount. Remember to keep a record and file it properly. Happy tax filling. Thanks.

Blue color: Tax relief that we can adjust easily in our daily life

Green color: Tax relief for property not rented out with S&P signed between 10/03/09-31/12/10

Light red color: Tax relief related to child

Yellow color: Tax relief related to life insurance premium

Consolidating Credit Card Debt: 2 Easy Methods in Malaysia

Credit cards have become a part of life in Malaysia. But as much as they make life a lot more convenient; credit cards can also lead to an unmanageable amount of debt. In some cases, credit cards have even led to bankruptcies.

If you have a credit card debt that seems to be spiralling of control, it may be the right time to consider debt consolidation. In Malaysia, there are two common debt consolidation methods that are highly workable.

1) Credit Card Balance Transfer

5 Things to Know before 13th General Election

Are you bored of the recent elections hoo-haa ? It's all coming from either party from different side, some NGOs, and some political related persons. How about foreigners? What are they thinking about our Malaysia General Election? Here you go...

In this note, Morgan Stanley outline the 5 things they think investors need to know regarding Malaysia elections:

OSK-UOB Dana KidSave

One of the most desired by an investor, is to achieve diversification in his or her portfolio and what better way to do so then by investing in a balanced fund. A balance in an investment portfolio is also fundamental to appease an investor in times of uncertainties and volatility. Such a balance can appeal to the investor of any age regardless of his or her objectives. Thus, with market uncertainties continuing to prevail over the Eurozone debt crisis and its contagion effect on the global economy, investors remain cautious with their investment choice, seeking to invest in low to moderate risk investments such as a balanced fund.

Hence, OSK-UOB offer you a Shariah-based fund with its balanced asset allocation strategy in equities and investments comprising sukuk, islamic money market instruments, deposits and collective investment schemes. The investment in equities will enjoy potential capital appreciation upswings while any downswings will be cushioned by its investments in the latter which are defensive in nature.

New Fund: Hwang AIIMAN Select Income

After the successful performance of AIIMAN series and the superb proven track record of Hwang Select Income fund, it's natural for Hwang to launch this new fund by riding on the story of these.

What is the Hwang AIIMAN Select Income fund?

This is a Shariah-compliant mixed asset (conservative) income unit trust fund that seeks to provide investors with regular income stream through Shariah-compliant investments. It also serves as an alternative investment for investors looking to diversify their portfolio into the fast growing Sukuk market and attractive Shariah-compliant equity market.

What it offers you?

New Fund: AmAsia Pacific Leisure Dividend

Do you like to go on a holiday spree in Asia Pacific region? If yes, then this fund may suit your appetite. On top of that, you can expect some dividends from this new fund launched by AmMutual. Please read on.

The fund aims to provide regular income and to a lesser extent capital appreciation over the medium to long term by investing in equities and equity-related securities of leisure industry across Asia Pacific region.

3 Different Types of PRS Distributors

Finance Malaysia believes that after a series of publicity and roadshow by various parties, especially PPA and PRS providers, you should know what is Private Retirement Scheme (PRS) is all about. Since then, we received many inquiries on whom should potential contributor consult with and why?

It brings us to this topic, and hopefully, by understanding the different types of PRS distributors, investors could make their decision confidently. There is no right or wrong. It's down to your own preferences and of course, the trust level you have a PRS consultant. So, who are they?

New Fund: CIMB-Principal Enhanced Opportunity Bond Fund

They say that the only constant in life is 'change'. Well, not always. Hopefully, with this new fund, you will find comfort in its stability. Furthermore, it aims to provide more returns than the current Fixed Deposit rate, and is more stable than equities. Riding on the growth of the Asian countries, investors have the opportunity to diversity their portfolio and increase the returns. This fund is only available until 4 April 2013 !

What is CIMB-Principal Enhanced Opportunity Bond Fund?

Why TUNE INSURANCE is Out of Tune?

Every wonder why we didn't cover the IPO for Tune Ins ? Other than CNY mood, it's because of the unexciting part of this new stock. Why? Please read on...

Tune Ins Holdings Sdn Bhd (TIH) operates 2 core businesses. First, it provides online insurance where insurance products are sold as part of the customer’s online booking process with their partners namely AirAsia, Tune Hotels and AirAsia Expedia. TIH also operates a general insurance business, through 83.26% owned subsidiary - TIMB.

Why invest in Tune Insurance Holdings?

The Old & New Palm Oil Growers Scheme

Both schemes have been categorized as "share-farming" interest scheme by Securities Commission of Malaysia, yet, both were in the limelight lately due to their contradict directions. The old one (Country Heights Growers Scheme) is wooing investors to terminate it, while the new one (Golden Agro Growers Scheme) is wooing investors to invest.

Why CHGS was in HOT water?