Robert Kiyosaki copied our article ?

Finally, even a guru like Robert Kiyosaki has to copy MalPF article and post as his own ...

just kidding, of course.

reply to PM asking for more money

the news: Malaysia is destined to double its income in the next 9 years.  In order to achieve that, the "domestic" folks must fork out MYR 94 billions a year until year 2020.  But in 2011, we are behind schedule with only MYR 27 billions domestic direct investment so far. . . .  so the prime minister asked us to invest more locally.

Dear boss,

I would love to invest into my own land and I also want to double my income.  In order to achieve that, each of my investment . . . well, must turn into a 200% income generator.  Which of our projects is generating this kind of return ?

Bakun Dam ?
Putrajaya ? Cyberjaya ?
Greater KL MRT ?  *

SMART tunnel ?
Penang / Singapore Bridges ?

Iskandar Malaysia ?

Karambunai Sabah ? *

100 storey tower ?

Do let me know as I wasn't aware of such a great domestic investment opportunity before.

However, if you just need donation, then just say so lah.  I will still give one ...

Love,

MalPF.com 

Why you should trust government fund ?

Should you tag along ? Well ... its always good to be a part of the 'main stream' .... :)

if you know when to get out .... before anyone else.

Will Banks take care of your interest ?

I was once young and naive. Banks are so big, earn so much money that they wouldn't bother to cheat my money. Its safe to leave everything to them and they will take good care of my money, especially when I am not a big user ... but ...

Notice in this statement that previous left over balance is only 1 cent. As a matter of fact, this account has been having 1 cent balance for 2-3 months. Recently I had to use up to RM 100 so that I can use ALL the points to exchange for food voucher before cancelling it. Suddenly there is a finance chargees of 22 cents.

How in the world can there be a 22 cents finance charges out of a 1 cent balance ? The finance charge is 16%.

After digging out the whole Eon team including the highest management demanding for an explanation, no one can answer that except apologizing and waiving the said ridiculous calculated fee. I couldn't help to think how many people out there have been abused by such system bug ? 22 cents x 10 million EON credit card holders = 2.2 millions a month.

Its NOT just a finance game ... unfortunately

A short while ago, I wrote that charging MYR50 to credit card users is an ineffective way to reduce credit card debt. I even predicted that government would soon realize this mistake and relax in execution later on. Quite a few large finance institutions thinks the same too. But of course they have their own agenda.

But I was wrong. Life is never monotonous. Personal Finance is NOT just about personal and finance. If you live on a land that has a country name, there are politics. And Politics matter, especially in this case.

This is my Right !

I can DO THIS and

I AM DOING IT !!

Perhaps we push too fast, too strong and making our finance ministry looks like a fool. Hence, our TOP decision maker has now publicly declared that HE is going to charge the MYR 50 NO MATTER WHAT !

Rumors or insider news, bankers are warn NOT to absorb the MYR 50 or else they will face indirect penalty withdrawing other facilities have been given to them. HE is very determined to collect this MYR 556 millions !!

You have a Problem ?

You Come Talk to me !

Ok, ok I will pay you MYR 50 ....

MYR 50 credit card fee - Solve debt with more debt !?

Seeing that credit card debt has reached a serious and dangerous level, Malaysia government will start imposing MYR 50 fee on each credit card hoping people will reduce the use of credit cards and therefore reduce debt.

Although it may sound rational to some people, but its actually somehow a bit funny ...

For those who keep credit cards in closet, they actually use the cards as emergency loan facility. Admitting to hospital will go through smoother with a gold card etc. These people did not owe any credit card debt, they were NOT part of the problems to start with. But now they are affected and has to cut off some of these FREE loan facilities. Credit card debt NOT reduced, good people's personal finance affected.

Some pay off their credit cards in full every month. They use card so that they don't have to bring lumps of cash around. They were NOT part of the debt problem but now they need to take more risk bringing more cash with them. Credit card debt NOT reduced, good people's personal finance affected.

Then there are those who owe money - who have long winding credit card debt. They just can't pay off the debt. They are the target group to be help with this policy. How can adding MYR 50 on top of their debt help them ? They can't just simply stop the card, they will have to pay their debt. As long as they haven't finished paying their debt, the account is running and MYR 50 will be added every year ... as an encouragement fee to 'help' them reduce debt !? Credit card debt INCREASED, bad people's personal finance PENALIZED.

Lastly there are these group of people who haven't had credit cards yet. So when they apply for one, they will think twice. But these people are NOT part of the debt problem to be solved to start with ! Credit card debt NOT reduced, good people's personal finance instilled.

Call me dump and crazy, how can this MYR 50 fee help reduce credit card debt again !? There may be some good points identified but NONE will reduce Today's credit card debts !!

After all, do you think a credit card debt person wouldn't pay a small fee of MYR 50 to get a new card from this lady ? After all, he can pay off this MYR 50 in his next 30 years which is only less than $1 a month.

Bursa Malaysia teaches Don't Buy And Hold

This is one of the Golden Rules from Bursa Malaysia teaching people how to trade Malaysia stock market.

This is the topic content and my highlight in RED.

The Malaysian stock market is one of the strongest and sometimes most dynamic markets in the world.

While the market has always recovered from falls, the same cannot be said for individual companies. Even during a booming market, some companies can suffer significant losses.

Trade only on an uptrend and sell the poor performers, this will make it impossible to experience a large loss. This is the secret to outperforming the market and achieving a consistently superior return.

Undertake some research on the Bursa Malaysia or in a local investment paper. List three shares that have showed decreased performance recently and three shares that have showed increased performance recently.

Did you get that ? "IMPOSSIBLE to LOSE A LOT" !! What a way to set GOAL in stock investment !! Furthermore, making MANY small loses is as bad as making ONE big lost. As a matter of fact, many small loses may actually be worse because you didn't feel the pain and didn't realize how much you have lost. As in Boiling Frog story.

Compares that with the Number 1 TOP stock investor in the world ...

What they should have said is to Employ A proper Stop Loss Strategy. Aim to be right and learn until you make more correct decisions, that is what the game is all about. But just in case you are wrong, preserve your capital allowing you to 'COME BACK' by adopting a stop loss strategy. When investing in a fundamentally strong business, it takes patience and sometimes ignorance to just buy and hold.

Why does even Bursa make such a bias education ? Well, buffett has said it above. Bursa needs brokers, brokers need money, so Bursa also wants you to buy and sell as much as possible so that you pay them more transaction fees.

Sell it ! Don't Hold ! Else Bursa will DIE !!

Ya right ! You may just as well donate your money to Bursa ....

never knew this is how it turns out ...

Ironically enough on how the stock market turns out to be ...

Everyone was watching closely on politics, economy, commodities, oils and golds ... but at the end, its the pig who triggers the market crash ...

Most may say this is totally irrelevant and just an arbituary incident.  But I cann't help to think that 

recession brings out the greed

more people cut cost into the ethic arena

animals are not fed right

environment is not kept well

which eventually trigger the out spread of the micro organism ...

"If you big guys don't want the world, we will take over just like how you took over dinasour last time!" - virus said.

stock market cures all deceases

Opps, did I spell it wrong ?  ... cure all diseases that is ... :)

Over Obsess Cost Optimizing ... KFC example

Today the line in KFC is longer than usual. I got bored and started analyzing the menu.



click here to view the spreedsheet

So the unit price gets lower the more quantity you buy. And the rate of getting cheaper is quite consistent. Which is good unlike Pizza Hut and Burger King.

The queue was still long, so I had to dig further ...



There you go ! Although the rate of unit price cut is quite steady, but there is a small dip when purchase 5 pieces of chicken !

Now its the tricky part, what does this mean and what can I do about it ?

I think what it is, is that if you were indecisive between 4 to 7 pieces, then its best to get 5 pieces.

Great ! I was just thinking 3 pieces were too few.

So I ended up buying 5 pieces, as analyzed.

Actually the queue wasn't that long, the whole order process was only 5 minutes. But then they don't have change for $50 and it took another 8 minutes for them to get the right change. So much about fast food huh ? They never promised fast change.

Anyway, it ended up only 4 pieces were consumed. The last piece turned out to be my late night supper. And since we are not suppose to sleep 2 hours after meal, I blog about my obsess calculative experience with KFC .... :)

do you know that it is possible to take a bath in KFC dish washer ?

Blogged with the Flock Browser

Real Life examples how Banks abuse Credit Card Holders

A is M-ban, one of the banks in Malaysia and D is Daniel a citizen.

D : I receive a SMS asking me to make payment but I don't have any M-ban credit card

A : Sure sir, may I know your name ?

D : Daniel XXX

A : Ok Daniel, I have to ask you a few questions for verification.

D : Ok.

( after some identity card, address info sharing ... )

A : What is your Credit Card number ?

D : I don't have one.

A : Sir, without your credit card number I cannot help you.

D : But that is the whole point, I am complaining to you that I do not have M-ban credit card and yet you are asking me to make payment, 

A : I know sir !  You have to tell me the credit card number before I can help you.

D : I don't have it.  Do you have other verification question ?

( silence for a short while )

A : Sure ... when is your card expiration date ?

( at the end, A "advised" D to make payment to avoid any further delay )

HL is another local bank in Malaysia and this time MS is Mew Siang, a HL-ban credit card holder.

MS's card is due renewal in June but MS doesn't need the card anymore.  So MS wrote an official email to HL to cancel the card back in May ( 1 month before renewal).  After 14 days, MS didn't hear from HL so MS called HL.

MS :  I wrote in to cancel my card a few weeks ago but I haven't heard from you since.

HL :  Sure miss, Let me .... ( after 5 minutes of verification )

HL :  Yes Miss, we have already received your cancellation letter and now it is in process.

2 months later in July, MS received a statement asking payment for renewal fee.  Soon after that MS received a call from HL.

HL :  Miss, in order for us to process this cancellation, you will need to fully pay up all the due amount !

MS : But I cancel this card 2 months ago !

HL :  Sorry miss, there is NO way I can cancel this card for FREE.  But you can keep it and use for 12 times.  Then we will waive the renewal fee for you !

MS :  What ?  I cancel this card and you ask me to use it ?

HL : Yes, that is the only way you can waive your renewal fee.

( MS firmly assure HL that she has all the documents in record and will submit to consumer rights report if HL doesn't do this properly )

HL : OK miss, I will cancel you card.

WTF ?  Didn't HL just said there is NO way she could cancel this card ?

is the credit arm of Aeon group who also own the famous supermarket Jusco.  Mou Tan, a consumer,  applied for its credit card because she was assured to collect 1.5X more points when she shop in Jusco which she always does.

After months of using the card, she found it extremely hard to make payment.  The only doable way to make her monthly payment is at Seng Heng, an electrical shop near by.  But in subsequent bill statement, it shows that an extra of $2 was billed because she was making payment in Seng Heng, although that was instructed by AEON staff and without prior acknowledgement for such a fee.  She also found out that all her purchases are NOT collecting 1.5X points as promised earlier.  As a matter of fact, there are NO Points collected with her newly applied credit card.

She called to claim her points but without success.  There are so many terms and conditions that it is just not worth it to keep the card.  So she cancelled it.  Upon cancellation she was told the total amount to pay in order to cancel the card.  So she paid that.  2 months later, another bill come asking for more payment.

MT : I already cancel this card and already pay in full as instructed.

Aeon : Ya, I know.  But there are still some remaining amount here you have to pay.

( after 5 calls totalling 2.5 hours of no progress.  MT gave way and pay the remaining small amount hoping to end  the issue fast )

3 months later, another bill come asking payment for 4 cents.  MT ignored it every month and until today MT still get a bill asking for 4 cents.  Since 3 years ago.

Red Indian Winter Stock Market

It was autumn, and the Red Indians asked their new Chief if the winter
was going to be cold or mild. Since he is young and being a Red Indian chief in a

modern society, he couldn't tell what the weather was going to be.

Nevertheless, to be on the safe side, he replied to his Tribe that the yes

winter was indeed going to be cold and that the members of the village
should collect wood to be prepared.

But also being a practical leader, after several days he got an idea.
He went to the phone booth, called the National Weather Service and
asked 'Is the coming winter going to be cold?'

'It looks like this winter is going to be quite cold indeed,'
the weather man Responded.

So the Chief went back to his people and told them to collect even
more wood. A week later, he called the National Weather Service again.
'Is it going to be a very cold winter?'

'Yes,' the man at National Wea ther Service again replied, 'It seems it is

definitely going to be a very cold winter.'

The Chief again went back to his people and ordered them to collect
every scrap of wood they could find. Two weeks later, he called the
National Weather Service again. 'Are you absolutely sure that the
winter is going to be very cold?'

'Absolutely,' The Man replied. 'It's going to be one of the
coldest winters ever.'

'How can you be so sure?' the Chief asked.

The weatherman replied, 'The Red Indians are collecting wood like Crazy.'

This is basically how Stock Markets work ! and how we have so many half-past-six gurus.

Safe less EPF, pay more TAX, You are now still poor and has no saving !

Full article on http://www.malaysiakini.com/news/93624

Da Mook: Let' assume your monthly basic salary is RM4,000.

If your monthly EPF contribution is 11% (RM440), then your taxable income = RM3560, and income tax payable = RM77.

If your monthly EPF contribution is 8% (RM320), then your taxable income = RM3, 680, and income tax payable = RM109.

Conclusion? If you choose to contribute 8%, you will end up paying more income tax to the government which will make the government richer.

Finance Minister Najib Abdul Razak said this measure was meant to boost the slowed down market, but from this example we see that the money does not go into the market.

Instead the money goes directly into the government's pocket through the greater amount of income tax that we will have to pay.

Obviously this measure does not help the market at all. Do we still want t...

Reduce EPF from 11% to 8%

Recently Malaysia "New" finance minister aka "Next March" prime minister announced some measures to "Save" our economy, shortly after he said our economy didn't need to be saved.  Anyway, this time around I don't have much complains.  Most of the measures are acceptable for the purpose to 'Improve' economy.  Although not perfect and some measures are "Arguable" but nevertheless none is definitely stupid.

One of the measures is to allow salary earners to reduce EPF contribution from 11% to 8%.  This particular announcement has attracted quite some debates.  Basically general public response is that we should save for our retirement and should NOT use our future money.  I cann't held to be so delighted when this respond comes from the public.  It shows that we are indeed having better senses and sensitive in planning our future.  ( But there is a higher chance that people just want to complain no matter what the announcement is ) 

I over heard from radio this morning that if 50% of the people does reduce contribution, we will have $24,000,000,000 to circulate in market which will help 'simulate' the market.  The radio hosts talk with excitement and as if that is the solution of all our problems.

if ALL reduce 3% would give $48 billions

so that means total salary drawn is $1.6 trillions or $1,600 billions

Malaysia population is 24,821,286 as of July 2007.

So even if we assume all population are working and the 24 billions are allocation for 2 years, then average montly income of a person is $2,778 

Actually working population is about 18 millions which comes to an average salary of $3,074

So it is quite obvious that the figure of 24 billions fund to 'boost' economy is a false figure.  This is not the first time this radio host publish wrong figures.  She tends to be very self center and simply announce figures that comes in her hand without proper analysis.  I am fine if she is just announcing it.  But the thing is she use that figure to justify the conclusion and reject all other callers opinion. 

So ... whatever offer you get or numbers you heard, do the math ... you will soon discover many things that seems to be 'Right' are actually ambigously 'Wrong' ...  

EPF/KWSP/401K is causing you to lose money because of their own stupidity

sorry I hadn't posted much these few days and I need to earn some extra money to substain this upcoming school holidays :)

Anyway, I receive an email which I have personal experience with.  I think its important for all Malaysian to know too .... and I would guess USA goverment may have done the same.  Good luck with your obama votes :)

Subject: SCAM by KWSP / EPF / 401K


This is another method for KWSP to steal our money!

Remember during Budget 2008 announcement last yr, our Finance Minister (cum PM) announced that in order to assist KWSP members to reduce the burden in housing load repayment, KWSP will allow monthly withdrawal from members' A/C II for the purpose?
Sounds like a nice goodies!
When you apply for the monthly withdrawal, you only need to provide KWSP yr housing loan & instalment details
from yr bank and the bank a/c # you like KWSP to bank the monthly
withdrawal into it. KWSP will approve yr
application based on the available amt in yr A/C II and compute the withdrawal period by dividing the approved amt with the monthly instalment amt. Application process takes about a month and you will receive the monthly payout promptly into yr bank a/c!
Well everything appear to be nice and good. It was indeed a noble plan until you take to close look at yr KWSP Statement!

The withdrawal plan is actually a SCAM!

This is how the KWSP SCAM works.......

Assuming you have RM100,000 in yr A/C II and yr housing loan's monthly instalment is RM2000/mth.
KWSP will approve yr application of withdrawal from yr A/C II of RM100,000 and pay you RM2000/mth for the next 50mths.
Everything appears to be in order BUT.......

What KWSP didn't highlight to you is that when the application was approved, the TOTAL AMT (RM100,000) is removed from yr A/C II! It appears to be transfered to an unknown a/c to effect the monthly payment from therein.

The impact to the member are as follows :-
1. You just lost RM100,000 from yr A/C II. Assuming the KWSP Dividend is 5%, you will lose >RM4,000 in dividend during the 1st year. Based on the above example you will will lose >RM10,000 over the 50 mths period!
2. There is no statement to account for the amt approved vs amt paid, hence you would need to keep the monthly payment voucher to reconcile against the approved amt over the 50mths period to ensure there is no missing amt!

Assuming there are 100,000 members who innocently fell prey to this SCAM, based on the above example, KWSP would have cheated the members of 100,000 X RM10,000 = RM1,000,000,000 (that's RM1 BILLION) over the period!


Furthermore, if you discovered this SCAM early and intend to stop the plan, KWSP would not allow any cancellation of the plan until at least 1 year. That would mean, once the application is approved, based on the above example, you would have lost >RM4,000.
100,000 members would have lost 100,000 X RM4,000 = RM400,000,000 (RM400 MILLION) in One Year!!!

If you're a victim of this KWSP SCAM, would suggest you call yr MP to raise hell in Parliament! (BN MPs won't do it)
For others who have not fallen into this SCAM, pls continue to watch out and alert yr family & friends about this.

HOW COULD THE GOVERNMENT ALLOW ITS AGENCY TASKED WITH SAFEGUARDING ITS CITIZEN'S HARD EARNED MONEY TO CHEAT ITS MEMBERS IN THIS MANNER???

Pls spread this message around.