Why e-Wallet will be the Future Payment Method in Malaysia?

Throw away your wallet! Replacing it with e-Wallet! You like it or not, the future of making transactions will be via electronic-wallet or QR code payments. We called it as e-Wallet.

In recent years, QR code payments are increasingly being seen as an affordable alternative to cash payments, particularly in Asia where mobile phone penetration is relatively higher. Across different jurisdictions, regulatory approaches have varied.

Considering Malaysia’s market characteristics, Bank Negara Malaysia has adopted a unique approach that aims to ensure a unified and interconnected network amid the proliferation of QR code payment providers. Hopefully, this will be happening very soon.

What's the central bank's initiatives on e-wallet ?

As at end-October 2018, there are a total of 37 non-banks e-wallet companies in Malaysia:

1. AEON Credit Services (M) Berhad
2. Alipay Malaysia Sdn Bhd (formerly known as helloPay Malaysia Sdn Bhd)
3. Axiata Digital eCode Sdn. Bhd.
4. Bandar Utama City Centre Sdn. Bhd.
5. BigPay Malaysia Sdn. Bhd.
6. Celcom eCommerce Sdn. Bhd. (formerly known as Celcom Multimedia (Malaysia) Sdn. Bhd.)
7. Chevron Malaysia Limited
8. DIV Services Sdn Bhd (formerly known as ePetrol Services Sdn Bhd)
9. Fass Payment Solutions Sdn. Bhd.
10. Finexus Cards Sdn. Bhd. (formerly known as MAA Cards Sdn. Bhd.)
11. Fullrich Malaysia Sdn Bhd
12. GPay Network (M) Sdn Bhd
13. iPay88 (M) Sdn. Bhd.
14. I-Serve Payment Gateway Sdn Bhd
15. JuruQuest Consulting Sdn. Bhd.
16. ManagePay Services Sdn. Bhd.
17. Maxis Broadband Sdn. Bhd.
18. Merchantrade Asia Sdn Bhd
19. Mobile Money International Sdn. Bhd.
20. MobilityOne Sdn Bhd
21. MOL AccessPortal Sdn. Bhd.
22. MRuncit Commerce Sdn. Bhd.
23. Numoni DFS Sdn. Bhd. (formerly known as Com2U Sdn. Bhd.)
24. PayPal Pte. Ltd.
25. Petron Fuel International Sdn. Bhd.
26. Presto Pay Sdn. Bhd. (formerly known as EPP Solution Sdn. Bhd.)
27. Raffcomm Sdn. Bhd. 
28. Shell Malaysia Trading Sdn. Bhd.
29. SiliconNet Technologies Sdn. Bhd.
30. Silverlake Global Payments Sdn. Bhd. 
31. SMJ Teratai Sdn Bhd
32. Touch 'n Go Sdn. Bhd.
33. TNG Digital Sdn. Bhd.
34. Valyou Sdn. Bhd.
35. Webonline Dot Com Sdn. Bhd.
36. WeChat Pay Malaysia Sdn. Bhd.
37. XOX Com Sdn. Bhd.

Meanwhile, there are a few Banks with e-money issuer license as well.

1. AmBank (M) Berhad
2. Bank of China (M) Berhad
3. CIMB Bank Berhad
4. Malayan Banking Berhad
5. RHB Bank Berhad

Wow... So many of them!
Which one should we use?
Cannot be all. Right?

No worry.
We will blog about a few of most widely used or most popular e-wallet in Malaysia.

Stay tuned !!!

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[EPF-MIS] Revised Basic Savings Table effective Jan 2019

Attention to all EPF members investment scheme (MIS) members, once again, EPF has just announced that they will be revising the basic savings threshold before a member can withdraw for investment purpose effective Jan 2019.

Higher or Lower ???

Of course, it will be revised higher in view of rising inflation or the depreciation of our value of money. The new quantum for the Basic Savings in EPF Account 1 will be revised from RM228,000 (RM 950 per month for 20 years) to RM240,000 (RM1,000 per month for 20 years) at member’s age of 55 years old.

According to EPF, the basic savings refer to the amount that is considered sufficient to support members’ basic retirement needs for 20 years from age 55 to 75 aligned with the Malaysian life expectancy.

How much Higher ???

Please refer below table the new Basic Savings schedule.

How much can we withdraw from EPF account 1 for investment purpose?
Click here to learn how to calculate yourself...

Not Worth to Invest using our EPF money ???

Click here to find out our explanations...

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[Budget 2019] You have to know these WINNERs and LOSERs !!!

It was suppose to be a “national sacrifice” budget, but it turns out be a caring budget to take care the B40 targeted group while more prudent on the government expenditure. Prior to the tabling of Budget 2019 in Parliament last Friday, the markets reacted negatively in anticipation of a painful year ahead.

No more bad news = Good news ???

However, the reality, as it turned out, was not as taxing all because of the surprising RM 30billion special dividend to be given from Petronas. Effectively, this has lessen the need for deeper spending cuts and/or more punitive tax-raising initiatives. Thank you to Petronas, the national hero once again.

Let's have a summary of the potential winners and losers from this Budget 2019:

Carlsberg & Heineken (Positive)

Oversold position prior to Budget 2019 in anticipation of higher sin tax on alcoholic drinks, but it was a non-event last Friday. Potential relief rally for brewers.

BAT (Positive)

Absence of tax hike bodes well for the cigarette company. Potential relief rally.

Opcom (Positive)

Allocation of RM1bn from the government to develop broadband infrastructure in the next five years. Opcom is one of Malaysia's leading fiber optic manufacturer.

MyEG (Positive)

Targeted fuel subsidy to eligible vehicle owners need the help of technologically-ready provider like MyEG.

Mah Sing, LBS Bina, Huayang & Sentoria (Positive)

Lower interest rates, higher financing margin and 100% stamp duty waiver could help the first-time home buyers, and this is good news to affordable home developers.

KPJ Healthcare & IHH (Slight Positive)

Due to the new B40 National Health Protection plan for lower income group.

Genting & GENM (Negative)

Two of the biggest losers from Budget 2019 due to higher casino license fees and gaming duties.

Magnum & BJTOTO (Slight Negative)

Special draws will be reduced by half, but it's a relieve that sin tax was unchanged.

Nestle, F&N Malaysia, Power Root, BJ Food & MSM (Negative)

Due to the new excise duty on sugary drinks. MSM is local sugar refiner.

AirAsia & AAX (Negative)

Starting 1 June 2019, with the rate at RM20 for outbound travellers to ASEAN countries and RM40 to countries other than ASEAN. And, higher fuel price was projected for 2019 and 2020. The abolishment of the RM20,000 p.a. tax cap for Labuan-based companies and to be taxed at 3% flat. Companies like AirAsia and AAX register their aircraft in Labuan.

Sime Darby Prop, SP Setia, Sunway (Negative)

Increase in stamp duty, introduction of RPGT from year 6 onwards and REHDA promised 10% reduction in the prices of new houses.

Sime Darby Plant, Felda, IOI Corp (Negative)

Higher minimum wage will increase the labour cost for planters.

MAHB (Neutral)

Government proposed to set up the world's first Airport REIT. It doesn't affect the profits of MAHB because the only difference is that, once the airport REIT is established, MAHB will no longer pay the user fee to the government, but will instead pay to the new airport REIT.

Disclaimer: This article is not intended, and should not under any circumstances be construed as, an offer or a solicitation of an offer to buy or sell the securities referred to herein or any related financial instruments.

Have a good trade ahead !!!

Budget 2019: Economic Highlights and Un-Budgeted Items?

From the recently announced Budget 2019 themed as 'Malaysia Wibawa, Ekonomi Dinamik, Rakyat Sejahtera', it will have 3 focus areas, and 12 main strategies to put the country back as an "Asian Tiger" again (hopefully), as what we enjoyed during 1990s until the Asian financial crisis.

Below is the 3 focus areas:

• 1st : Implement institutional reforms
• 2nd : Ensure people's well-being
• 3rd : Nurture a culture of entrepreneurship

The very first budget announcement from the new government after 60 years of independence caught the eyes of the world, especially economists, to gauge the thinking of the new ruling coalition's future policies. Well, it was considered as an expansionary budget, although facing fiscal constraint, partly due to 1MDB scandal.

Economic Highlights from Budget 2019:

1. Government real debt and liabilities as at end-June 2018 stood at RM1.065 trillion, which is RM350 billion more than the official sum revealed by the previous government
2. Forecasts 2018 GDP growth at 4.8%
3. Forecasts 2019 GDP growth at 4.9%
4. Debt for 2019 expected to reach 51.8% of GDP
5. Total liability in 2019 expected to declines to 73.5%
6. Budget deficit for 2018 revised to 3.7% vs 2.8% previously (after taking into the 'real' debt figures)
7. However, the fiscal deficit is projected to narrow to 3.4% of GDP in 2019

Huh? What is the so called "un-budgeted items" by previous goverment?

According to the Budget 2019 speech, the increase in fiscal deficit arises after taking into account previously un-budgeted items such as below:

• RM1.0bn interest servicing cost for 1MDB debts,
• RM1.3bn in compensation for the acquisition of Eastern Dispersal Link in Johor which was announced last year,
• RM1.0bn for Prasarana,
• RM1.4bn for Ministry of Transport rail projects, and
• paying back some GST refunds of RM3.9bn.
  

Well, well, well... It's good that the new government is transparent about our financial health. However, this would not be good in the eyes of rating agencies, which may potentially downgrading our credit rating later. What do you think?

"Although the 2018-2019 budget deficits were adjusted higher – derailing theoriginal course of fiscal consolidation – we are confident that international ratingagencies will look past this as a one-off event." ~ RHB Research

"Over the medium term, the deficit is seen reducing to the region of 2%, though the government did not mention the exact time period. As such, we do not foresee any changes in Malaysia’s sovereign credit rating." ~ TA Securities

Below is the info-pictures designed by Finance Malaysia team to highlights some of the key announcements:

Next we will blog about the possible winners and losers for share investors. Stay tuned !!!