Happy Chinese New Year & Gong Xi Fatt Chai!!!

HAPPY CHINESE NEW YEAR & GONG XI FATT CHAI to all the readers of my blog. It is quite some time that I never update my blog, and now is the time for me to update this more frequent again.

Earlier I have shared few posts about the personal financial planning, which you can see the links of the complete series at the right pane, and I will continue on this to complete the whole personal financial planning series. The next topic of this personal financial planning talk is Types of Investment Tools. Please stay tune for the sharing soon.

In every new year, we will feel that the goods and services in the market are rising in price, and we will have our bonus or salary increment. How we can overcome the price rising with our current bonus and salary increment? How we should plan for our future financially? Now is the time for us to think about this. Let’s us plan our finance wisely and work towards financial freedom.

Again, wish all of you a very Happy Chinese New Year and a very Happy Investing Year!

EPF announce 5.65% dividend for 2009

As the share market is going up since early of year 2009, most of the stocks have gained during the last year. EPF announces 5.65% of dividend for year 2009, which is 1.15% higher than year 2008. Year 2008 is a bad year for share market, where there was economy crisis, especially the subprime mortgage crisis in western countries.

Looking back at the last 10 years, what is the dividend rate announced by EPF???

2009 - 5.65%

2008 - 4.5%

2007 - 5.80%

2006 - 5.15%

2005 - 5.00%

2004 - 4.75%

2003 - 4.50%

2002 - 4.25%

2001 - 5.00%

2000 - 6.00%

From the trend, EPF is no longer announcing dividend rate which is higher than 6% for the past 10 years, and I believe they will not annouce a dividend higher than that in recent years. (year 2006-2007 is a very bullish year in share market)

So, be aware of this, and think about our future. EPF is no longer enough for our retirement fund, and we need to figure out some other channels to prepare for our future retirement fund. Investing in unit trust funds, stock market as well as properties will be a wiser choice for us to accumulate more wealth.

Besides, you may consider to invest using our EPF as well...just find out the best way of your own.

HAPPY CHINESE NEW YEAR & GONG XI FA CAI

HAPPY CHINESE NEW YEAR & GONG XI FA CAI to all of you!!!

Wish you all that your dream will come true soon and have a prosperous tiger year...

Plan ahead your financial plan at the beginning of the year to make sure your financial goal can be achieved.

I have quite some time write nothing on this blog, but in the new year, I will continue to write and share with you all about my view and experience in personal financial planning and investment. So, keep your eye on this blog and feedback or discuss with me through the comments.

Again, wish you all have a happy and prosperous CHINESE NEW YEAR!!! GONG XI FA CAI!!!

2010 Malaysia Budget

Malaysia Prime Minister is delivering Malaysia Budget of year 2010 in Parliment today.

Below are some highlights which related to personal financial planning:

1. Personal Income Tax reduce 1%.

2. Broadband subscribers can get tax relief up to RM500 a year during year 2010-2012.

3. Personal expenses tax relief increase to RM9000 from RM8000.

4. Service Tax of RM50 will be imposed by Jan 2010 to each of the principal credit card, charge card including free card. RM25 will be imposed for supplementary card.

5. Tax relief of EPF and Life insurance increases to RM7000 from RM6000.

6. RM3billion of sukuk 1Malaysia will be issued to Malaysian of 21 year old and above, 3 year maturity with 5% return per annum.

7. Government to look into micro insurance, takaful coverage. Premiums from as low as RM20 per month, coverage from RM10,000 to RM20,000.

8. Government to impose 5% tax on gains from disposal of real property from Jan 1, 2010. However,it will be retained for gifts between parent and child, husband and wife, grandparent and grandchild. This tax exemption will also be given on disposal of residential property once in a lifetime.

9. Government to launch scheme for EPF contributors to use current, future savings in Account Two to get higher financing to buy higher value house or additional houses.

10. 1Malaysia retirement scheme for self-employed, run by EPF. For every RM100 contribution, government to contribute 5%, maximum RM60.

Public Bank announce 2Q Financial Report of FY2009

Public Bank, PBBANK (Stock Quote 1295) has announced the 2nd quarter financial report for financial year 2009. These are the few key points of the report:

• The Group achieved a pre-tax profit of RM1,564.7 million and net profit attributable to equity holders of RM1,200 million, which represented a decrease of 11.2% and 8.5% respectively from the previous corresponding half year, due to a one-off goodwill payment of RM200 million received from ING.
• Excluding the one-off ING goodwill, the underlying operating pre-tax profit and net profit attributable to equity holders have actually improved by RM2.5 million, or 0.2%, and RM34.4 million, or 3.0%, respectively.
• The Group’s net interest and financing income continued to show a growth of 8.7% as compared to the previous corresponding half year, despite the negative impact of the drops in overnight policy rate by BNM from 3.5% to 2.0%.
• The Group’s asset quality continued to improve with its gross non-performing loan (NPL) balance decreasing by RM10.6 million to RM1.21 billion as at 30 June 2009. The Group’s net NPL ratio further improved to 0.80% from 0.93% a year ago.
• Public Bank recorded a pre-tax profit of RM1,174.1 million for the financial half year ended 30 June 2009 and was lower than the pre-tax profit of RM1,525.5 million achieved in the previous corresponding half year.
• Pre-tax profit contribution from the Group’s overseas operations decreased by RM64.5 million or 31.8% from the previous corresponding half year to RM138.3 million.
• For the 2nd quarter ended 30 June 2009, the Group registered a pre-tax profit of RM819.8 million, an improvement of RM28.2 million or 3.6% as compared to the previous corresponding quarter.
• The EPS for the 2nd quarter remains at 17.7 cent compared to previous corresponding quarter. The EPS for the half financial year ended 30 June 2009 has decreased to 35.1 cent compared to 39.1 cent in the previous corresponding half year.
• The Net assets per share is RM2.99.
• Total assets is RM204,038 million and total liabilities is RM193,004 million.
• Interim dividend of 30 cent less 25% tax is declared.


Personal view:
1. Public Bank NPL is improving, despite of the current economy crisis. This shows that Public Bank approves the loan application with extra carefulness.
2. Public Bank oversea operations are facing decrease of revenue as well as profit, which is a great challenge for the management.
3. By having half year EPS of 35.1 cent, we assume the EPS is same for the 2nd half, the total EPS is 70.2 cent. With the current share price RM9.96, the PE is 14.19.

Previous Quarterly Financial Report

Amanah Saham 1 Malaysia (AS 1Malaysia) is Launched!

Our Prime Minister, Dato Seri Najib announces that there will be another funds being launched and managed by PNB (Permodalan Nasional Berhad) during his 100th day as Prime Minister. The fund is called Amanah Saham 1 Malaysia (AS 1Malaysia). Today, the fund has been launched. Total of 10 billion unit with RM1.00 each will be sold through all the agents bank on 5 August.

There is a quota of 50% allocated for Bumiputera, 30% for Chinese, 15% for Indians, and 5% for others during the first 30 days. There is no quota after the period. The agents bank that distribute the fund are CIMB Bank, Maybank, and RHB Bank. Besides, the fund is also distributed by Pos Office and all the ASNB offices.

There is still no any official information published in ASNB website yet, but it has been announced that, the fund is fixed at RM1.00, same as ASM or ASW2020. Thus, it is expected that the return of this fund should be similar with the ASM and ASW2020. More information will be added here when there is official information published.

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ASNB has announced the prospectus of AS 1Malaysia. The unit price of AS 1 Malaysia is fixed at RM1.00. According to the Guideline of Unit Trust, this fund is not a capital protected fund. However, as the price is fixed at RM1.00, in fact the fund is capital guaranteed.

The prospectus of AS 1Malaysia can be downloaded here, http://www.asnb.com.my/prospectusall.htm

ASM (Amanah Saham Malaysia) Available Again!

As promised earlier, ASM which are not sold is opened to all the races. There are 1.6 billion unit of ASM will be opened for all the bumi or non-bumi to invest. These units will be available for investment at 21 July 2009. Each individual investor is only eligible for 20,000 units.

Prime Minister, Dato Seri Najib announces earlier that there will be another fund called Amanah Saham 1 Malaysia launched and also managed by PNB, so people expect this new fund is similar to ASM, ASB or ASW2020.

However, we still do not have detailed information of the new AS1M, it is no hurt if people invest in ASM first while waiting for the more detailed information of AS1M.

More information on ASM, refer to earlier article:

ASM and ASW2020