Friday, December 20, 2013

New Housing Rules (effective Feb 2014) for PENANG

Dec 8 — First-time house buyers in Penang will need to get state approval if they intend to sell their properties within a specified time frame, under new housing rules that will take effect from February 1 next year.
Chief Minister Lim Guan Eng said the new rules - created to clamp down on property speculation - will impose a moratorium of up to 10 years on the sale of houses by first-time homeowners.
The moratorium applies to low-cost homes costing up to RM42,000 and low-medium cost homes worth up to RM72,500 and covers all past and future purchases.
- See more at:

Good initiative from Pakatan government, I wonder will Selangor State Government follows...

Thursday, November 21, 2013

国家银行再次出招打房 (11/2013)

(吉隆坡19日讯)国家银行再次出招打房,以“实销价”(Net Selling Price)取代“大价”(Gross Selling Price),来计算房屋贷款上限(Loans to Value,简称LTV),令人错愕

据了解,国行已在上周五(11月15日),发出题为“促进房产市场永续措施”(Measures to Promote Sustainability of the Property Market)的通告,通告内的条例从发出当日生效。
(1)以“实销价” 取代 “大价”,来计算房贷上限;
(2)加强限制“利息资本化”计划(Interest Capitalisation Scheme,ICS)的批准,包括“发展商承担利息计划”(DIBS)。


此新条例将有效抑制发展商设法以其他优惠方式,取代被禁止的DIBS;事实上,也防止了发展商对购屋者广泛提供的前期现金回扣。回顾此前的方式,银行是根据购屋的买卖协议(SPA)的估值来计算房贷上限。最近公布的2014年财政预算案已志明,发展商目前必须把总价(all-in price)的所有详情公开列明。虽然此新条规目前难以评估对银行业所带来的冲击有多大,但这条例适用于所有的房地产融资方案,包括首次购屋者。

“意味着房地产买家的可承担能力将会受到影响,进而拖累银行业房贷增长走低。” 分析员相信,在今年下半年已经3次祭出打房措施的国行,已清楚表明要抑制我国家庭债务增长的决心。

15日后获批 房产禁令即刻生效
针对禁止“利息资本化”计划(ICS)的措施,凡是在今年11月15日之后取得当局批准的房产项目,禁令即刻生效。 至于在11月15日之前取得批准的项目,禁令则会在明年1月1日开始生效。所谓“获得当局批准”,是指住宅产业发展商执照、行销与广告准证,至于非住宅发展项目,则是指开发令及建筑蓝图。


●对住宅和非住宅房地产的购买,加强限制“利息资本化”计划(Interest Capitalisation Scheme)的批准,包括“发展商承担利息计划”(DIBS)。

Sunday, October 13, 2013

What is MLTA?

Last week received a call, this man, let's call him Mr. M, asking question about MLTA.

Mr. M just signed a letter offer from a bank for over RM600k and keen to buy mortgage insurance. He said he received some quotation and done his research online over the insurer's website.

Mr. M question to me is, "Why I can't find a product name MLTA?"

To answer Mr. M.....I said: "MLTA is not a product but a concept coined by insurance agency to sell life insurance."

"MRTA (Mortgage Reducing Term Assurance) is also a form of life insurance", I told Mr. M, "but sold by bank to borrower to protect the bank's interest first."

Both MRTA and MLTA has its pros and cons. I believe MLTA is gaining more market shares because it gives consumer more flexibility. People likes to be in control...

Retirement Savings Comes From Character And Discipline, Not Luck.

If you have not discuss on Retirement Planning with spouse, friend or business partner, soon you will have....
How is your retirement saving plan going?

I guess most people have common problems, like...
We need to earn more....We need more time to save.... We need better return on investment etc....
 So, what is yours reason?

Let's forget about return on investment first. With low balance, however high is your ROI also close to meaningless.

To have a huge retirement saving pot, you should target to increase your saving amount rather than your ROI. It happens only and only if you actually put money away, in a disciplined and serious manner, for years. Then let the compounding effect works on it.

Friday, October 4, 2013

He is planning to sue a Commercial Bank (for force sale his house)....

Mutton-seller A Muthukrishnan is planning to sue a commercial bank for supposedly high-handed selling of his house to a moneylender.
He also claimed that the moneylender had hired thugs to attack him last year when he refused to transfer ownership of the house to the moneylender as he had failed to settle a RM50,000 personal loan that he took in 2006, causing him to lose a thumb.
Muthukishnan bought a unit of double-storey terrace house in Selayang Baru, Batu Caves in 1997 with a housing loan secured from the bank where he paid a monthly installment of RM1,000.
However, he started defaulting on the monthly repayment and the bank sold the property to moneylender.
“In 2008, I was shocked when the bank informed me that a third party has requested for the property redemption sum and later bought the house,” he said, adding that he had approached the bank on the matter and was advised to lodge a police report.
Muthukrishnan also claimed that despite the police report, there was no action.
“I have also made at least 40 complaints to Bank Negara, the police, Tribunal for Consumer Claims, Bar Council, Malaysia Licensed Money Lenders Association and several ministries in hope they are able to help me to resolve this matter,” he said.
When asked if the bank had offered assistance, Muthukrishnan claimed that the bank had offered money on several occasions but declined to reveal the amount.
“With the bank offering me money, it is an indication that something is wrong,” he said, adding that he wanted the house instead which was valued at about RM700,000.
When contacted, a representative of Standard Chartered Bank said that the bank was in communications with Muthukrishan to help him resolve his concerns.
“Standard Chartered cannot comment on any information relating to our customers. As you may know, we are required by both international and local laws and regulations to maintain strict confidentiality about customer information.
“As an international bank, we adhere to these requirements in all our markets for all our customers.
“What we can tell you is that we have been in communications with Mr Muthukrishan to help him resolve his concerns,” said the representative. 

Thursday, October 3, 2013

Bank Negara New Rule - Capping "cash out" on Refinancing

In Q3 of 2013, Bank Negara Malaysia (BNM) issued new guidelines to banks regarding refinancing of mortgages. Prior to this, anyone could refinance their homes with repayment tenures up to 35 years. Under the new guidelines, any cash out amount from mortgage refinancing would be capped at 10 years tenure. 

Many people are now asking, how can you avoid it?

This guideline is part of Bank Negara’s efforts to reduce unnecessary household debt, and also cools any speculative activity in the property sector that is fuelled by lax home loan refinancing.

Effect of the guidelines

Before this, you could refinance your house up to 90% of its market value. The cash out amount can be used for any purpose. This includes investing in other properties, and is a common practice among serial property investors. Maximum loan tenure follows those of housing loans, which is 35 years.

Assuming the house is worth RM400,000, outstanding housing loan balance is RM150,000, interest rate is at 4.6% and Margin of Finance is at 90% of market value.

Example refinancing calculation under the old rules:

Amount to cover outstanding balance = RM150,000
Cash Out Amount = RM210,000
Total Refinance Amount = RM360,000
Tenure = Max 35 years
Total Monthly Installment = RM1,726

Example calculation under the new rules:

Amount to cover outstanding balance = RM150,000
Tenure = Max 35 years
Monthly Installment = RM719

Cash Out Amount = RM210,000
Tenure = Max 10 years
Monthly Installment = RM2,187

Total Refinance Amount = RM360,000

Total Monthly Installment
= RM719 + RM2,187
= RM2,906

That is a difference of RM1,180 per month! MANY people will NOT be qualified due to DSR exceed entitlement*.

Is there any way around it?

Likely no.

* DSR = Debt Service Ratio. Most people maximum entitlement is between 60% to 80%. Once installment amount increases, DSR increase accordingly.

Friday, September 20, 2013

[转帖] 退休生活规划


税务优惠 最高减免RM6000
无忧晚年 靠自己钱滚钱
锺贵发博士 税务顾问兼事务及辩护律师
(来源:南洋网 – 财经周刊

[转帖] 养老误区

来源:星洲日报 – 投资致富

Tuesday, August 20, 2013

Avoid Estate Planning Disaster!

Gandolfini, the famous actor who starred in the acclaimed HBO series The Sopranos from 1999 to 2007 passed away at the age of age 51 reminds us that we are not immortal and thus we should review or update our estate planning constantly in order to prevent any complications that will arise from the administration of the estate in the event something unfortunate happens to us.

An article published on Private Wealth shows us some of the things that we can learn from Gandolfini’s estate plan ‘Disaster’.

Kindly click *HERE* to view the article.

Thursday, August 15, 2013

Know more about "MSIG Motor Assist"

MSIG Motor Assist: Benefits & Services

Nationwide Coverage
Our panel workshops are strategically located nationwide to provide the best services to our policyholders.

24-Hour Call Centre Service
A dedicated tele-service line manned by experienced customer service officers to provide claims and roadside assistance services. All you have to do for the assistance services is to call our 24-hour Motor Assist Hotline at 1-300-880-833.

24-Hour Towing & Emergency Roadside Repair Services
If your vehicle is immobilized as a result of a breakdown, you may just make a call to the MSIG Motor Assist Hotline at 1-300-880-833. MSIG Motor Assist will arrange to:

  • Organize minor repair on-site, if necessary;
  • Tow your vehicle to your home or your preferred repairer to rectify the problem.

MSIG Motor Assist will bear an amount up to RM300.00 per incident for towing and any labour
costs for on-site breakdown repairs only, excluding replacement of parts.

The above service is specially provided to MSIG’s Private Comprehensive Motor Insurance Policyholders only.

Transmission of Emergency Information
Transmission of information during emergency to the immediate family of the policyholder within Malaysia could be provided upon request. However, MSIG shall not be liable for non-delivery of message if recipient cannot be located.

Alternative Transport Home after a Motor Accident
Transport home could be arranged at reasonable cost for MSIG policyholder or driver from the scene of the accident.

6 Months Warranty for own damage claim
Our panel workshops ensure quality of repairs on the vehicles and provide a 6 months’ warranty for all repairs carried out by them. A Warranty Certificate will be issued by our panel workshops.

Workshop Identification
They are easily identifiable by the certificate displayed in their premises.

Endorsement 106
To better manage and provide good customer claims service, the following clause is incorporated in your policy.
“ In the event Your Vehicle is involved in an accident and give rise to a claim, Your Vehicle must be removed to a PIAM Approved Repairers Scheme (PARS) Workshop selected and approved by Us for repairs. Failure to remove Your Vehicle to an approved workshop would be a breach of Endorsement 106 and We shall have the right to decline liability under Section A of this Policy.”

Click here to download the booklet

Will or Trust? Will and Trust? What are the differences?

Difference between Will and Trust

Why your (life insurance policy) nomination may NOT be good enough?

If you have purchased a life insurance policy, congratulations! 

Most of the time, you would name your children as the beneficiaries of your life insurance policy. This is because you are concerned about their maintenance, education, living expenses and medical needs, when you are not there to provide for them. It is good that you put your child's welfare as your paramount consideration.

However merely nominating your spouse and children as beneficiaries may not be as secure as you think. The proceeds from your insurance policy may possibly be more than enough to financially provide for your child when you're no longer around. However, if your child is minor he/she may not be matured enough to handle such a big sum of money or he/ she may pass the money to unscrupulous people to manage.

The solution is to appoint Rockwills Trustee Bhd as Trustee when you name your child as the beneficiaries of the life insurance policy.

As the appointed Corporate Trustee, we will:
  • PROTECT your insurance proceeds against the claims by your creditors;
  • Ensure it would not be frozen and delayed by the legal process;
  • DISTRIBUTE it to your beneficiaries when they reach 18 years old;
  • GUARANTEE your wishes would be realized.

UNormination S.166 Trust Nomination - The Structure 


Our S.166 Nomination Trust is a must for parents who regard their child's welfare as their utmost concern, especially those who have insurance policies to benefit minor children. It is only RM188 per policy. Why wait? Contact us today.

Make certain that your children will be able to benefit from what you set out to do for them. Act now. Consult our professional Estate Planner now to achieve the best for your children.

Should I Write My Own Will?

In Malaysia, anyone can prepare a Will, but the question is whether the Will drawn up in accordance with the Wills Act 1959 as well as whether it fulfills the wishes of the testator.  There are also necessary formalities and rules about beneficiaries, witnesses and executors of the Will.

If you have written your DIY Will, is it within the ambit of various laws - such as guardianship, family inheritance, Wills Act and trust? Your DIY Will may be ineffective and invalid if it is improperly written and as a result may cause hardship to your family members. Even a Will with simple mistakes can lead your executors and beneficiaries to unnecessary and costly litigation and distress. You may save money now, but it will cost your family more to repair the damage later.

Therefore, you are recommended to consult a Professional Estate Planner or a lawyer who would be in a better position to advise you and draft a Will for you.

The Will written by Rockwills are drafted and vetted by our in-house Legal Advisors. The Legal Advisors are experts and have written thousands of Wills. Experience and specialization by the Legal Advisors following all the Legal clauses/precedents ensure that the contents of the Wills are valid and fulfill the wishes of the testator.

The Professional Estate Planners are facilitating the finalization of the Wills according to the wishes of the testator meaning we tailor made each Will to each client's position. The service provided by the Professional Estate Planner ensures that instruction given by the testator is in the comfort and convenience of the testator's home or office.

Contact us for free review.

赫赫有名的巴林银行(Barings Bank)是如何倒闭的?

巴林银行(Barings Bank) 创建于1763年,创始人是弗朗西斯·巴林爵士,由于经营灵活变通、富于创新,巴林银行很快就在国际金融领域获得了巨大的成功。其业务范围也相当广泛,无论是到刚果提炼铜矿,从澳大利亚贩运羊毛,还是开掘巴拿马运河,巴林银行都可以为之提供贷款,连世界上最富有的女人 – 伊丽莎白女王也信赖它的理财水准,并是它的长期客户。
1992年,巴林总部决定派他到新加坡分行成立期货与期权交易部门,并出任总经理。尼克里森买卖的是一种最简单的金融衍生工具 – 日经指数225(Nikkei 225)的期货指数,这是日本225种股票的价格指数,类似于美国的道琼斯指数。这种交易并不复杂,里森对价值几十亿美元的日本股票和债券设定一个可随时兑现的赌注,这种方式类似于拉斯维加斯那种被称之为“过或不及”的足球赌博,即赌球赛的结果超过或不及某一比分,而里森赌的是日经指数超过或不及某一点数;所不同的是,在美式足球赌博中,如果他输了,只赔掉他的下注;而在期货市场,交易者只需拿出一个很小的比例(这一比例为6%)压在桌上,所以得失可能超出赌注的许多倍。
此后,类似的失误都被记入“88888”账户。里森不想将这些失误泄露,因为那样他就只能离开巴林银行,但账户里的损失数额像滚雪球一样越来越大。如何弥补这些错误并躲过伦敦总部月底的内部审计以及应付新加坡证券期货交易所要求追加保证金等问题,成了里森头疼的事情。为了弥补手下员工的失误,里森将自己赚的佣金转入帐户,但前提是这些失误不能太大,所引起的损失金额也不能太大,但乔治造成的错误确实太大了,急于想挽回损失的里森开始从蓄意隐瞒走向另一种错误 – 冒险。

稻盛和夫 与 日本航空公司






随时周转不灵或破产 – 中小企业财务3通病

求助者多35至45岁 退休生活令人担忧
“为了解决燃眉之急,他们转向无担保贷款(Unsecured loans)如私人贷款、信用卡等借贷,结果,为了偿还高利息,不小心就陷入生意周转不灵的窘境。”
庄国辉表示,这个现象尤其在个人公司(Sole Proprietor)更为显著;假设以有限公司(Sdn Bhd)形式营运相信能避免这种情况发生,因一切都将以公司账目为准则,但因需要审计等程序,促使营运成本较高。
第三: 拖账文化
“拖账”文化也是拖累中小企信誉,一不小心就会周转不灵的主因,庄国辉认为,中小企在这方面的财务管理应相当谨慎,谨记3P政策,即目的(Purpose)、还款记录(Payment History)和还款能力(Payment Capility)。
(来源:南洋网 – 中小企业

Friday, July 5, 2013

Measures to Further Promote a Sound and Sustainable Household Sector

Bank Negara Malaysia announces today (5th July 2013), the implementation of a set of measures aimed at avoiding excessive household indebtedness and to reinforce responsible lending practices by key credit providers. These measures, which take effect immediately, complements the earlier measures introduced since 2010 to promote a sound and sustainable household sector.
The measures are:
  1. Maximum tenure of 10 years for financing extended for personal use;
  2. Maximum tenure of 35 years for financing granted for the purchase of residential and non-residential properties;
  3. Prohibition on the offering of pre-approved personal financing products.
The limits on financing tenure will not affect applications made before today.
Household debts have continued to increase at a strong pace, averaging at an annual rate of 12% over the recent five 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. This includes extended financing tenures of up to 45 years for house financing and 25 years for personal financing. While this may reduce the monthly repayments, in the long run, this increases the overall debt burden of households. Such practices encourage excessive debt accumulation by households and increase the vulnerability of this sector.
These measures are issued pursuant to section 31(1)(a) of the Central Bank of Malaysia Act 2009 and apply to all financial institutions regulated by Bank Negara Malaysia, credit cooperatives regulated by the Suruhanjaya Koperasi Malaysia, Malaysia Building Society Berhad and AEON Credit Service (M) Berhad. This is to ensure consistency in the financing practices across all the key credit providers.
In addition to the above measures, the key credit providers are required to observe prudent debt service ratios in their credit assessment to ensure households have sufficient financial buffers to protect them against rising costs and unexpected adverse events. Households who have the financial capacity to take on borrowings will continue to enjoy access to financing. To enhance responsible debt management by households, Bank Negara Malaysia will intensify its efforts in financial education to all segments of society including young and first time borrowers from financial institutions. In addition, the framework for consumer protection will continue to be further strengthened under the Financial Services Act and Islamic Financial Services Act.
Bank Negara Malaysia
05 July 2013

Thursday, June 20, 2013



Full article -

About start a saving...

You may believe you don’t have extra savings set aside because you don’t make enough money. Or maybe you think you’ll save after you get out of debt. It might be counterintuitive, but unless you start saving regularly, that day may never come.

Wednesday, June 5, 2013

Stamp Duty Waiver for first-time house buyer

The government is extending the 50% stamp duty exemption for first-time house buyers to Dec 31, 2014 under Budget 2013.
The price cap of the residential property will be raised to RM400,000 from RM350,000 under the revised ruling.
The government said the proposal is to reduce the cost of owning the first residential property and also due to the increase in the price of such property.
The effective date is for sales and purchase agreements (SPA) executed from Jan 1, 2013 to Dec 31, 2014.
Under the current regulations, the exemption is only for the SPA signed from Jan 1, 2011 to Dec 31, 2012.
The first residential property applies to an individual who does not own any residential unit or part of a property jointly owned, when applying for the stamp duty exemption.
Residential property includes a terrace house, condominium, apartment or flat.
Source: The Star

Friday, May 31, 2013

Nothing in life is certain but death and taxes ~ Benjamin Franklin

‘Nothing in life is certain but death and taxes’

So goes the quote made famous by American writer and politician Benjamin Franklin. Both are equally
unpleasant subjects that people tend to avoid. It’s not the kind of thing you want to discuss but the
unfortunate reality is that funeral costs are skyrocketing and you may want to consider what this means
for your loved ones.

How much does it really cost?
Depending on your religious beliefs, a typical funeral could cost anywhere between RM2000 to
RM25,000. This is inclusive of prayer services, preparation of the deceased’s remains, cemetery plot,
venue and hearse. A moderate space on a newspaper’s obituary will also set you back an additional
RM300-600 for a modest sized obituary.

There are some funeral homes which offer pre-planned funeral packages so you can roughly gauge the
costs. One of the benefits of getting a pre-planned package is you’ll save a lot of money on inflation as
things will definitely cost more in 30-40 years. You also have the option of paying on instalment.
Taking care of your assets

It’s equally important to make arrangements for your remaining assets. Drawing up a will should be
done every time your material position changes to ensure your property goes to the intended recipients
and not back to the state or bank. Will writing services vary depending on how vast your assets. A simple
will can be drawn up for as little as RM380 but when it involves various estates you’ll need to appoint
legal trustees to manage the execution of your will. The standard rate for an appointed trustee is usually
1% to 2% of the estate value. If a person owns estates that are worth RM1 million, the administration
process could tally up to RM12,000, which includes a token nominal fee.

It is also possible to write your own will. However, it would be advisable to run it by a lawyer to ensure it
fulfils the requirements of the Wills Act 1959.

Taking care of your digital information
Although still unheard of in Malaysia other countries are starting to offer services that take care of all
your social media accounts and private digital information after your death. Most of these digital will
services such as Entrustet are free but do not apply in our country just yet. Until it is, you can indicate a
trustee to handle these through your will.

Devising a plan
An average funeral will cost approximately RM8,000. Considering inflation rates, this number could
increase significantly in the coming years. Here’s a short checklist on steps you can take to plan ahead:

  • Ensure you have a good life insurance policy which can provide for funeral expenses.
  • Start a small savings account for this purpose.
  • Write a will as soon as you can and keep it updated.
  • Pre-plan costs and other details with loved ones. It’s not the nicest subject but you will be glad you undertook to speak about it. You can even buy ‘pre-plan’ funeral packages from select funeral homes on instalment.


EPF Withdrawal to purchase / build a house

Withdrawal to purchase / build a house

This scheme allows individuals (or joint purchasers) to withdraw money from their EPF Account 2 to purchase a house (type: bungalow / terrace / semi-detached / apartment / condominium / studio apartment / service apartment / townhouse / SOHO) or a shop lot with residential unit, from a developer, individual, or in a public auction.
To apply, the Sale and Purchase Agreement (SPA) as well as the Housing Loan Approval Letter (unless the house was paid for in cash) or Loan Facility Agreement must be submitted at the time of the application. You can walk in to any KWSP office to submit the KWSP 9C (AHL) (D5) Withdrawal Form , along with the supporting documents or submit via postal services.
In most cases, it would mean that you will have to pay for the following upfront costs first and complete the following before applying for a withdrawal:
  1. Booking fee + Down payment for the house.
  2. Lawyer fees and stamp duty for the Sale and Purchase Agreement.
  3. Obtain the at least the letter of approval for the housing loan.

Withdrawal limits

  1. Money from EPF Account 2 can be used to pay the price difference between the SPA house price and the housing loan amount, up to an additional 10% on the price of the house. So if a full housing loan (100%) is obtained, the maximum that can be withdrawn is up to 10% of the price of the house.
  2. If the house was purchased using cash, up to 110% of the price of the house can be withdrawn.
  3. Any withdrawal amount is always subject to whatever money is available in the applicant’s (and where applicable, joint applicant’s) Account 2.

Eligibility for withdrawal

  1. Withdrawal to purchase the first house.
  2. Withdrawal to purchase a second house, provided the first house is sold, or disposal of the property has taken place.
The full list of T&Cs plus the necessary supporting documents can be found at this section for purchase or this section for bulding a house at KWSP’s website.