Credit Cards: To Cut or Not to Cut?

Lim Mun Fah wrote his piece on the RM50 fee on credit card imbroglio in mysinchew.com on December 23.

So, what has he to say now that we have only a few days left for the year before new cards are charged the insidious RM50 fee? What does it do to you? It makes you poorer and the government richer for not doing anything whether in cash or in kind. Some kind of daylight robbery. You are not too far wrong here, my friend.

Let me append his article in toto.

"Don’t protest, I mean no offence, please don’t be over-sensitive! In fact, it is just a joke among friends.

Since the government made an announcement to start imposing a RM50 service tax on credit cards next year, many people will ask: “Have you cut it?” when they meet friends.

To be honest, many people would like to cut it but the problem is, two months after the announcement was made, they are still wondering whether they should cut it.

The government said the measures was meant to encourage saving by reducing unnecessary consumption as well as reduce the problem of “credit card slavery”.

It is not necessarily the actual situation. But the government's tax revenue will be increased for sure.

Contrary to the government's view, instead of spending extravagantly, many people save money by using their credit cards. For example, you may pay electronic equipment in instalments without interest by using your credit card.

Some banks cooperate with insurance companies to allow its credit card users to enjoy a 3 per cent discount if they use credit cards to pay their annual insurance fees. Also, if you use your credit card to pay for fuel, you can enjoy a 2 per cent discount and at the same time you can accumulate points for gift redemptions. It is one of the ways to save money, too.

Some banks also work with shopping malls and allow credit card users to enjoy up to a 20 per cent discount if they use credit cards to pay for parking.

In short, if you know how to make good use of credit cards, it can be considered as smart consuming, too. Save a little bit here and there and you will find it comes to a considerable amount after a year.

On the contrary, if you do not know how to use your money well, even with only one credit card in hands it may also end up as “credit card slavery”. And even if you have no credit card at all, you still may have to bear a lot of debts.

The announcement was made two months ago and we have only 10 days to go before the official implementation date. However, only now the government is trying to clarify the doubts; isn't the “efficiency” too low?

In particular, the government said all credit card users will have to pay RM50 per principal card and RM25 for each supplementary card, but today, it announced the latest measures. Our officials are having the same style of doing things, just like the controversial measure of limiting the amount of petrol pumped by foreign-registered vehicles at petrol stations located in border states. They always give the impression of “hasty decision and rapid change”!

As we understand too well given such a “hasty decision and rapid change” bureaucratic culture, the people are unable to make a decision whether they should cut it.

However, although I don't know how other credit card holders feel, I have made up my mind and decided to join the 800,000 card holders to cut it!

I'm going to cut it, how about you? "

MY ANSWER:

I have cut most of the cards,anyway. As the government tax will only fall due on the anniversary dates of card renewals, I guess I have some time to use those cards without resorting to cut all of them.Finally, I guess I will shift to better value-for-money cards that will do the job of those 'dinosaur' cards I am holding currently. So, I am one of the 200,000 still holding some cards!

Malaysia: EPF for Self Employed

To assist those who are self-employed,The Employees Provident Fund (EPF) will roll out a new retirement scheme for them comes 2010.

The EPF will launch the 1Malaysia Retirement Saving Scheme on Jan 3 next year to help the self-employed cope with income inadequacy during retirement.

It was designed to provide these individuals without a fixed monthly income with a degree of financial security in their old age.

The scheme is open to self-employed individuals such as hawkers, night-market traders, real estate agents, freelancers like disc jockeys and fitness instructors, singers and actors and online business owners.

The Government is sensitive to the fact that adequate retirement savings remains a major concern for all Malaysians and in particular the self-employed, especially those without a fixed monthly salary.

”The 1Malaysia Retirement Saving Scheme offers this select group of contributors tremendous flexibility in determining how much they could afford to save for their retirement.

Unlike the conventional EPF saving scheme, the amount contributed into the 1Malaysia Retirement Saving Scheme is entirely at the contributor’s discretion.

Contributors can opt to set aside a minimum of RM50 or a maximum of RM5,000 per month as their retirement savings. Contribution is voluntary and contributors are also not required to contribute savings on a monthly basis but rather what and when they can afford to.

Contributors would receive annual dividends declared by the EPF, in addition to a 5% contribution from the Government subject to a maximum of RM60 per year over the next five years from 2010-2014.

Those interested to apply for the scheme can fill the KWSP 16G (1M) Form which is available at any EPF branch nationwide or download from the myEPF website at www.kwsp.gov.my from Jan 3 onwards. The forms are to be returned at any EPF branch or by mail.

However, individuals who are not EPF members have to register with the EPF first by completing KWSP 3 Form and submitting it to the EPF before applying for the scheme.

Existing EPF members, who turn self-employed, are also eligible and may opt for this new scheme.

Savings for the scheme can be deposited via cash or cheque using the KWSP 6A(2) Form at any EPF Payment Counter nationwide and withdrawals are governed by the present EPF withdrawal procedures and conditions.

Further information can be obtained by visiting the nearest EPF branch or EPF Call Centre at (03) 8922-6000 or the EPF website.

I think this is great news. I wonder what will be the withdrawal procedures if one is short of cash to buy a house or to pay the tuition fees for one's children's education. Will it be the same as the current on-going scheme?

Malaysia: Maverick Mahathir 's Last Dare?

A combative Dr Mahathir Mohamad said today he welcomed Lim Kit Siang’s (Opposition Member of Parliament) call for the government to set up a royal commission to probe whether he “burned” RM100 billion on grandiose projects and corruption during his 22 years in office as the PM. True to his 'wayward' ways,he tongue-in-cheek asked that former PM Abdullah Badawi be investigated as well by the self-same royal commission.

“I will cooperate fully with the commission.Depending upon the results of the commission I reserve the right to sue Barry Wain, Lim Kit Siang and malaysiakini.com for libel for a sum to be disclosed later,” he wrote on his popular chedet.cc blog today.

Dr Mahathir was referring to the recent publication of the book “Malaysian Maverick: Mahathir Mohamad in Turbulent Times,” written by former Asian Wall Street Journal managing editor Barry Wain.

In that book, Mahathir was alleged to have been blamed for “wasting” or “burning up” RM100 billion. Malaysiakini.com published excerpts from the book.

Yesterday, Lim urged the Najib government to investigate the allegations.

“I welcome Lim Kit Siang’s proposal for Najib to set up a royal commission on whether I burned RM100 billion...during my 22-year reign,” defied Mahathir.

"Such a commission," he said, "should not be made up of government nominees, but should instead have as members “impeccable people including foreigners and members of Transparency International.” What a dare! What a derring-do!


He added the probe’s terms of reference should also include how RM270 billion of Petronas money, paid during Abdullah’s five-year term, was spent.“It should include how much money was lost due to the cancellation of the crooked bridge and the Johore Baru to Padang Besar railway.”

He cited other projects during the Abdullah era which he said should be investigated.

They include the cost over-runs in the construction of the Bakun Hydroelectric project, and also the financing of the second Penang Bridge and the procedure followed when giving out the contract.[Is this his way of deflection?]

“I also agree with Lim that the investigation would reflect Najib’s commitment to ‘combating corruption’.“In order that the enquiry by the commission is successful, the government must give an undertaking to give full access to the commission to all the documents and accounts of the government over the period 1981-2009. There should be no cover-up of any kind.” [Walla! This time putting current PM on the spot!]

He also suggested that Wain, the writer of the book that has sparked the controversy, should provide “documentary proof of any sum that he alleged I had burned.”

Dr Mahathir also urged the government not to ban the book for distribution in Malaysia. “I am not in need of protection,” he added.Such bravado!

This article was written by Leslie Lau Consultant Editor for Malaysian Insider.

As a Malaysian, I expect this to be only an outburst. Ir is just fun to read as a bedtime story. Nothing more.

My take; Best to "Let Sleeping Dogs Lie"

Jim Warren: Artist Extraordinaire

Who is Jim Warren?

A self-taught painter that defies artistic categorization.



A Los Angeles newspaper described him as 'somewhere between Dali and Rockwell.'

You are experiencing a most unusual artist. Seeing is believing!

Malaysia: The Unstoppable Brain Drain

This is a tongue-in-cheek scenario created by Tay Tian Yan. He claims these are true stories. It was published by mysinchew.com on 16 November 2009.

Titled "Made in Malaysia",this article makes one great reading. The implication,however, are of grave concern.

Story No: 1:

The Successful Operation:

A Malaysian politician had heart surgery in Singapore. The operation was successful. During his recuperation, the politician wanted to thank his three skillful doctors, including an anesthesiologist.

He said: “Thanks to Singaporean doctors...”
“I'm sorry, sir. I'm from Malaysia,” interrupted one doctor.
“Me too.”
“Me as well.”

Story No. 2:

The Overseas Township Planners

A Malaysian company wanted to develop a new township abroad, it entrusted the project to a Singapore multinational company.

The Singapore company sent a team of seven people including the chief executive officer, chief architect and chief financial officer.

The first meeting went off smoothly. They relaxed and chatted. The Malaysian company's director said: “Durians from my hometown Kuala Pilah, Seremban taste the best.I'll treat you all next time when you come.”

“Really? What area in Kuala Pilah? I'm from Kuala Pilah, too!” said the Singapore company's chief executive officer.

Next, one by one, the other six from the Singapore team revealed their identities.

“I'm from Malacca.”
“I'm from Kuala Kangsar, Perak.”
“I grew up in Segamat.”
“My hometown is...”

And all of them were actually “made in Malaysia”.

There are countless similar stories around us.

And there is always another story behind each story.

Some of them were rejected by domestic universities while others were rejected by the
Public Services Department which denied them government scholarships in spite of their excellent results.

They couldn't get it even with 10 As while others got only 10 Bs.As leaving might be better than staying, they just went to a different world after crossing the Causeway.

There is a deep feeling for every story. According to Malaysian Employers Federation (MEF) statistics, about 785,000 Malaysians are currently working abroad and 44 per cent of them are working in Singapore while the rest are working in other countries, including Hong Kong, China,Australia, Britain and the United States.

And two-thirds of them are professionals.

Sadly, at the same time, most of the two million guest workers here in Malaysia are from neighboring Indonesia, Bangladesh, Myanmar, India and Vietnam.

They are engaged in work which does not require a high educational background but just a little bit of brains. Low skill, low knowledge and, of course, low wages.

Malaysia has become a country that exports brains while importing labourers,resulting in a serious deficit in the knowledge trade.

The government started to lure our talent abroad in 2000 by offering a variety of incentives, including tax concessions and other conditions.

It has been nearly 10 years but only 770 people responded, with an average of 80 talents returning a year. The 770 are just a small number of the total
number of people working abroad.

However, many of this small group of people still choose to leave again.

While many young people are not able to realize their dreams here and thus,they are packing and preparing to pursue their dreams in unfamiliar countries.

And they said that Malaysia wants to become a high-income country.

Malaysia: 4th Largest Bank Set to emerge

It is almost certain. Hong Leong Bank is on course to take over EON Bank thus creating the 4th largest Malaysian bank. Expected assets: RM110.5 billion

Hong Leong Bank has received Bank Negara Malaysia’s (BNM) permission to begin negotiations with “certain shareholders” of EON Capital to acquire an interest. EON Capital, which is listed, wholly owns EON Bank.
KUALA LUMPUR, Dec 22 — A merger between Hong Leong Bank and EON Bank to create Malaysia’s fourth largest bank with assets of RM110.5 billion could be in the offing.

Late last week, Hong Leong Bank told the stock exchange that it had received Bank Negara Malaysia’s (BNM) permission to begin negotiations with “certain shareholders” of EON Capital to acquire an interest. EON Capital, which is listed, wholly owns EON Bank.

EON Capital’s largest shareholders are businessman Rin Kei Mei and Sarawak billionaire Tiong Hiew Khiing, who collectively hold 33.2 per cent of the financial firm.

Other shareholders include Hong Kong-based investment fund Primus Pacific Partners (20.2 per cent), the Employees Provident Fund (12.1 per cent) and state investment agency Khazanah Nasional (10 per cent).

In a note on Friday, BNP Paribas analyst Ng Wee Siang said that both Rin and Tiong were willing to sell their shares at RM8.20 apiece.

His prediction was denied by both men yesterday, but they stopped short of saying they would not consider selling at all.

There is no certainty, however, that a deal will be struck as this isn’t the first time Hong Leong Bank has tried for EON Capital. A previous attempt several years ago had stalled over pricing so it could happen again as tycoon Quek Leng Chan, the controlling shareholder of Hong Leong, isn’t known to pay more than what he considers a fair price.

Even so, the move towards merger reflects the central bank’s desire to winnow the Malaysian banking sector to a few large banks, the better to withstand increased foreign competition starting next year. Currently, Malaysia has eight local banks.

It could also reflect Quek’s increased appetite for acquisitions. He recently announced that he’d amassed an 8 per cent interest in Bank of East Asia, while his Hong Leong group has begun making aggressive moves into China.

His push for merger is likely to be supported by both Khazanah and the Employees Provident Fund, which are likely to side with the central bank’s stand.

For its part, Primus isn’t likely to sell out to Quek. The investment fund had bought into EON Capital at a jaw-dropping RM9.55 apiece, a price that Quek would probably consider astronomical.

Instead, Primus might back Quek’s buyout of Rin and Tiong. It is widely known that Ng Wing Fai, Primus’ managing director, does not see eye to eye with the 70-something Rin on issues of capital management.

Still, the fact that Quek is interested in EON Capital drove the firm’s shares higher yesterday. The stock closed 4.6 per cent higher at RM6.88 apiece. — Business Times Singapore

EON Capital’s largest shareholders are businessman Rin Kei Mei and Sarawak billionaire Tiong Hiew Khiing, who collectively hold 33.2 per cent of the financial firm.

Other shareholders include Hong Kong-based investment fund Primus Pacific Partners (20.2 per cent), the Employees Provident Fund (12.1 per cent) and state investment agency Khazanah Nasional (10 per cent).

In a note on Friday, BNP Paribas analyst Ng Wee Siang said that both Rin and Tiong were willing to sell their shares at RM8.20 apiece.

His prediction was denied by both men yesterday, but they stopped short of saying they would not consider selling at all.

There is no certainty, however, that a deal will be struck as this isn’t the first time Hong Leong Bank has tried for EON Capital. A previous attempt several years ago had stalled over pricing so it could happen again as tycoon Quek Leng Chan, the controlling shareholder of Hong Leong, isn’t known to pay more than what he considers a fair price.

Even so, the move towards merger reflects the central bank’s desire to winnow the Malaysian banking sector to a few large banks, the better to withstand increased foreign competition starting next year. Currently, Malaysia has eight local banks.

It could also reflect Quek’s increased appetite for acquisitions. He recently announced that he’d amassed an 8 per cent interest in Bank of East Asia, while his Hong Leong group has begun making aggressive moves into China.

His push for merger is likely to be supported by both Khazanah and the Employees Provident Fund, which are likely to side with the central bank’s stand.

For its part, Primus isn’t likely to sell out to Quek. The investment fund had bought into EON Capital at a jaw-dropping RM9.55 apiece, a price that Quek would probably consider astronomical.

Instead, Primus might back Quek’s buyout of Rin and Tiong. It is widely known that Ng Wing Fai, Primus’ managing director, does not see eye to eye with the 70-something Rin on issues of capital management.

So, it looks like Hong Leong Bank has come a long way since the days when it was only a puny finance company!

One Confused and Mixed Bag:Bahkuteh,Malt and Halal

Malaysia is supposed to be a middle-of-the road Islamic nation. It presents itself to the world that it is a moderate Islamic nation and is proud of its multi-cultural social backdrop.

However, Malaysia is a strange nation. It is at once fundamental and moderate in its Islamic beliefs. The older generation that holds the reins of powers over religion on behalf of the various sultans at the state level and the Agung at the federal level,from time to time, seems to go off tangent in many of their interpretations and give shocking 'fatwas' or religious dictates instead. The younger generation of Muslims are less orthodox.


It was an issue when malt drinks came into the market some time back. When the advertisers touted it as 'halal beer', there was a hue and cry. Now, an international hotel chef has concocted his own brand of bahkuteh which is halal. The authorities are in arms again saying any name can be used for the dish but not 'bahkuteh halal'.

Should we just laugh out loud or give off a chuckle?