2009 What Do you Want to Achieve?

This year 2009, what do you want and how to achieve it? Whether you are a student, entrepreneur, employee, government servant & etc, we have to plan for our goal. Below is some of theory that I will plan for my goal in 2009.

I will use the theory of how to plan for a S.M.A.R.T Goals, the goals must be:

Specific
Measurable
Attainable
Realistic
Timely / Tangible

Specific - The goal must be specific rather than general goal. Below four "W" will lead you better planning your goal.

Who: Who should do it ?
What: What you should do?
Where: The place.
Why: What reason make you to plan this goal?

Measurable - The goal must be able to determine, such as I want to save extra RM100.00 per month, then after 6 months need to measure it, whether you achieve it?

Attainable - The goal must make it come true. Do your abilities, skills, and financial capacity to reach it? If not, how to make it happen?

Realistic - The goal must be justifiable by yourself, do you willing to do it? You can not set a goal that, I want to earn RM1million per year, but in realistic you just work 8hour office work with your employer and take a salary of RM2,000 per month.

You must beleive that the goals is acheivable, not matter how you must achieve it.

Timely - A goal without time frame is equal to zero. We must set a time, when we must acheive it.

Tangible - When we acheive a goal, it must be able to feel the satisfication. Goal must also be concrete,real and attainable.

Happy planning for your goals. In the market the is a lot of open source that can assist you to setting up the goals. Not matter you plan your goals in a paper, computer,mind and etc, the most important is we must acheive it and fulfill the theory of S.M.A.R.T then we will feel the satisfication.

Happy New Year 2009

Dear Friends,

May you & your family well & happy always.

Let all the Malaysian put more effort and cross our fingers to overcome this global economic slowdown.

We Malaysian can do it, we will do the best!!!

OTL

Summarise from Bank Negara Malaysia Press Statement release on 30 Dec 2008

Monetary and Financial Developments November 2008 Highlights of the Press Release

1) Commercial Bank lowered the fixed deposit (FD) rates for tenures between 1 and 12 months were within the range of 3.02% to 3.53% and the base lending rates (BLR) in response to the reduction in the Overnight Policy Rate (OPR). The average lending rate (ALR) decreased to 5.98% in November (6.01% in October).

2) On gross terms, however, financing raised by the private sector was slightly lower at RM53.1 billion. Total loans outstanding expanded at an annual growth rate of 10.7% as at end-November.

3) During the period 1 November to 26 December 2008, the ringgit appreciated by 2.4% against the US dollar. The ringgit, along with most regional currencies, had earlier depreciated in November due to portfolio outflows caused by the global de-leveraging process and heightened risk aversion amid the global financial turmoil.

4) The ringgit appreciated against the pound sterling (13.6%), but depreciated against the euro (-6.3%) and the Japanese yen (-6.1%). Against regional currencies, the ringgit depreciated against the Philippine peso (-0.5%) and Singapore dollar (-0.2%), but appreciated against other regional currencies in the range of 2.2% to 3.6%.

5) Investor trimmed their long position in US dollar following the reduction in the Fed Funds rate to 0% - 0.25% on 17 December 2008.

6) Inflation 5.7% in November 2008.

7) Broad money, or M3, expanded at a faster annual rate of 12.5% in November or increased by RM8.8 billion,reflecting the higher provision of credit to the private sector and expansionary Government operations.

8) Net non-performing loans (NPLs) of the banking system at 2.4% of total net loans.

9) Banking system capitalisation remained strong with a risk-weighted capital ratio (RWCR) of 12.5%.

10) The international reserves of Bank Negara Malaysia amounted to RM336.4 billion (equivalent to USD97.7 billion) as at 28 November 2008. As at 15 December 2008, the international reserves amounted to RM330.4 billion (equivalent to USD96 billion). The reserves position is sufficient to finance 7.8months of retained imports and is 3.4 times the short-term external debt.

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Comment :

Lower FD will affect the return for the deposit holders; for those retire and rely on interest rate they may receive lower income but need to bear the higher expenditure for their daily life. The inflation is at 5.7% base on BNM information. In reality it might be higher, depend on the person spending or expenses.

As November financing by private sector still at a stable level, with the global recession, do the Malaysia bank still will continue provide loan at double digit growth? Loans outstanding expanded at an annual growth rate of 10.7% as at end-November.

Although MYR appreciate 2.4% against USD, but if we compare with Dec 07, MYR actually depreciate around -5% against US. MYR depreciate roughly -23.2% against Japenese Yen from Dec 07. And compare with our neighbor country Singapore’s SGD we depreciate around -4.9% from Dec 07.

Inflation may come down, but the other issue is do we have the purchasing power? The rural area people is highly rely on plantation, nowadays Crude Palm Oil (CPO) and rubber commodity price coming down a lot, to maintain their daily expenses also a problem.

On November Broad money, or M3 still at the stage of expand, but BNM Malaysia also mention that foreign outflows continued to exert a contractionary impact on M3 and for the Nov 08 net foreign assets outflows around 12.1 billion from Oct 08 22.7 billion.

Malaysia international reserves also decrease starting from this few months, as this may indicate more outflows money. Do these mean the foreign investors’ lack of confidence to us? Why they would like to outflow the money? Where do they put the money?

2009 Most and Least Fuel Efficient Vehicles

The Most Efficient Overall Vehicle:

Toyota Prius
Engine(s) : Toyota Hybrid System II
Gasoline 1.5L DOHC I4 VVT-i
57kw (76 hp) @ 5000 rpm
115 Nm (85 lb-ft) @ 4200rpm
Electic: 500 V
50kw (67 hp) @ 1200 rpm
400 Nm (295 lb-ft) @ 0 rpm
AT-PZEV:
Net power: 110 hp (82kw)

Transmission(s) 1-speed planetary gear
Wheelbase 2700mm
Length 4450mm
Width 1725mm
Height 1490mm
Curb Weight 1325kg



Source:
1. http://www.fueleconomy.gov/
2. http://en.wikipedia.org/wiki/Prius

Merry X'Mas & Happy New Year 2009

Dear my Friends,

Merry X'mas & Happy New Year... May you & your family be well, happy & free from worry in the coming year... And hope all of us can over come the global recession...

Tough time never last, tough people do!!!

OTL

Lower EPF, Higher Tax? Do you mind?

Malaysia government allow EPF contribution minimum contribution to reduce from 11% to 8%. The lower contribution to EPF meant to help families cope the inflation and over come the global recession, so that they have more cash in the monthly budget.

The EPF reduction will apply automatically next year, for those who prefer to maintain their contibutions at 11% will need to fill-up KWSP 17A (AHL) through their respective employers. Or the may download it through KWSP website strating from Dec 2008.
KWSP 17A Form

You will still wondering whether you should cut the contribution stating from Jan 2009? Several matters or question you need to consider:

1) With lower contributions of EPF mean lower savings in your retirement account, how do you utilise the extra money?

2) For every RM1 less that you save in your EPF account, you stand the pontential to lose RM61 on retirement if assuming EPF pays 5% p.a dividend for the next 20years. Do you mind?

3) If assume, that you reduce the contribution and have extra RM50/month for the next 2 year you will get extra RM 1,200 but you will end up losing RM 3,050 for the next 20 years. Are you satisfy with that?

4) How much your EPF contribution per year? If your EPF contribution at 8% exceed RM6,000 per annum, then you can ignore this question. If you EPF contribution at 8% is below RM6,000, please take note for it.

Employees EPF contributions & Life Insurance are tax-deductible up to the combined limit of RM6,000 per annum.

If assume that your annual salary are around RM54,550.00 (RM 4545.83 per month) and without any other income & bonus. Then your EPF contribution at 8% is RM4364 while at 11% is RM6000 (round up figure).

And assume that, you do not have any further deduction beside personal relief RM 8,000 and eligible EPF contribution at the cap of RM 6,000.

If your EPF contribution at 8% your taxable income will be RM 42,186 and tax payable is RM2459.18, while at 11% your taxable income will be RM 40,550 and tax payable RM2246.50, and the difference tax payable is RM212.68 . With the extra RM1636 additional money in your pocket, you end up need to pay extra RM212.68, around 13% of the RM1636, since the tax bracket at 13%.

5) In short, if you are tax payer (eligible to pay tax after deduct all the tax deductable expenses), and your EPF contribution add up life insurance premium sum is below RM 6,000 , you may end-up pay more tax, depend on how much your tax bracket, the higher you are the higher tax you pay.

Will you still consider to lower your EPF contribution? Do you benefits from this government move? Government encourage us to spend, so spend as much as you can... Haha... Boost up our economy... ...

2009 Malaysia Growth may hit 8-years Low

According Morgan Stanley recent report, Malaysia trade surplus will condense, as slowing in demand and lower commodity price.

Mr. Deyi Tan Morgan Stanley economist predicted that South East Asian nation may grow 0.5% in 2009, while Malaysia goverment still expect our nation growth rate will at the rate of 3.5%. The economist also forecast that the trade surplus may narrow to 17.1% in 2009 from 20.6% 2008. Whose figure should the people rely on? We are the net export country, and the demand for export will decrease and the price of our commodity come down.

Malaysia growth model of trade is depend on commodity resource and fiscal pump-priming. With the currenct stituation, demand for export slow down, palm oil & crude oil price come down more than 50%, it is tough for us to maintain the trade balance.

On 11th Jan 2007 according to AFX news, Malaysia's second finance minister Nor Mohamed Yakcop remain confident that Malaysia economic growth will achieve around 6-6.5% in 2008 despite higher crude oil price at the point of time. He also mentioned that revenue from the state-run oil comapny Petronas will be better for with the higher oil price, but where is the money Petronas spend when the time Petronas enjoy higher oil price?

As Malaysia growth may be slow down, when the good time do the government keep the money? If yes, will the government spend it?




Reference :
1) http://www.btimes.com.my/Current_News/BTIMES/articles/20081219105257/Article/index_html
2) http://www.forbes.com/markets/feeds/afx/2007/11/01/afx4287510.html